Federal Communications Commission	DA 26-474


Before the
FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON, D.C. 20554


In the Matter of

July 1, 2026
Annual Access Charge Tariff Filings
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WC Docket No. 26-50
ORDER

Adopted:  May 15, 2026	Released:  May 15, 2026

By the Chief, Pricing Policy Division, Wireline Competition Bureau:

I. INTRODUCTION
1. In this Order, the Wireline Competition Bureau (Bureau) sets forth the Tariff Review Plans (TRPs) that may be used by incumbent local exchange carriers (LECs or carriers) to substantiate their annual July 2026 interstate access service tariff revisions. TRP formats for the annual filings are developed for the specific circumstances of the tariff year in which the revised rates will become effective.  The filing dates and comment periods for this year’s annual access charge filings were released earlier in a separate order.  In that order, we established an effective date of July 1, 2026.  July 1, 2026 Annual Access Charge Tariff Filings, WC Docket No. 26-50, Order, DA 26-254 (WCB/PPD rel. Mar, 25, 2026) (Procedures Order).  We refer to the TRPs developed for this year’s annual filings as the 2026 TRPs.
  Specifically, we remind carriers of their existing obligations under the Commission’s rules, request information that supports the rate-level changes proposed in carriers’ July 1 annual tariff filings, and minimize regulatory burdens on carriers by providing TRP workbooks developed by Commission staff in consultation with industry and consistent with the Commission’s rules.  We also waive section 69.3(a) and (h) of the Commission’s rules to the extent necessary to implement reforms associated with various Commission orders. 47 CFR § 69.3(a), (h); see id. § 1.3. 
  
2. Under the Commission’s rules, incumbent LECs are required annually to submit to the Commission effective July 1 revised access charge tariffs containing rates charged for telecommunications service as well as supporting information. 47 CFR § 69.3(a) (“a tariff for access service shall be filed with this Commission for a two-year period…with a scheduled effective date of July 1”); id. § 69.3(f); id. §§ 61.38, 61.39 (supporting information to be submitted with tariff filings); see 47 U.S.C. § 203 (requiring common carriers to file with the Commission schedules of charges, i.e., tariffs, for interstate communications).
  Every year the Bureau releases TRP workbooks developed in coordination with industry which carriers may use to submit their supporting information for the July 1 annual tariff filing. See, e.g., July 1, 2025 Annual Access Charge Tariff Filings, WC Docket No. 25-94, Order, 40 FCC Rcd 3060 (WCB/PPD 2025) (2025 TRP Order).  
  The 2026 TRPs implement the recovery rules adopted in the USF/ICC Transformation Order. See Connect America Fund et al., WC Docket No. 10-90 et al., Report and Order and Further Notice of Proposed Rulemaking, 26 FCC Rcd 17663, 17956-18002, paras. 847-932 (2011) (USF/ICC Transformation Order), pets. for review denied sub nom. In re: FCC 11-161, 753 F.3d 1015 (10th Cir. 2014).
  The 2026 TRPs for rate-of-return carriers also implement the universal service reforms and tariffing requirements adopted in the Rate-of-Return Reform Order, Connect America Fund et al., WC Docket No. 10-90 et al., Report and Order, Order and Order on Reconsideration and Further Notice of Proposed Rulemaking, 31 FCC Rcd 3089 (2016) (Rate-of-Return Reform Order).
 and Rate-of-Return BDS Order. Regulation of Business Data Services for Rate-of-Return Local Exchange Carriers et al., WC Docket No. 17-144 et al., Report and Order, Further Notice of Proposed Rulemaking, and Second Further Notice of Proposed Rulemaking, 33 FCC Rcd 10403 (2018) (Rate-of-Return BDS Order). 
  Completed versions of the 2026 TRPs appended to this document will provide the supporting documentation to fulfill, in part, the requirements contained in sections 51.700 through 51.715, 51.901 through 51.919, 61.38, 61.39, 61.41 through 61.50, and 69.3 of the Commission’s rules. 47 CFR §§ 51.700-51.715, 51.901-51.919, 61.38-61.39, 61.41-61.50, 69.3.  
  The 2026 TRPs display support data in a consistent manner, thereby facilitating review of carriers’ rate revisions by the Commission and interested parties.  Carriers may, but are not required to, use the 2026 TRPs the Bureau developed for the 2026 annual tariff filings.  In the alternative, carriers may submit TRP worksheets developed by the carrier consistent with the Commission’s rules.  
II. BACKGROUND
3. In the USF/ICC Transformation Order, the Commission required carriers to reduce, over a period of years, many of their switched access charges until those rates eventually reached zero, as part of the Commission’s transition to a bill-and-keep regime. USF/ICC Transformation Order, 26 FCC Rcd at 17934-35, para. 801.  The last of those rates went to zero in 2020.  See id., para. 801, fig. 9; 47 CFR §§ 51.907, 51.909.
  At the same time, the Commission adopted a recovery mechanism to mitigate the impact of reduced intercarrier compensation revenues on carriers and to facilitate continued investment in broadband infrastructure. USF/ICC Transformation Order, 26 FCC Rcd at 17677, para. 36.
  As part of the recovery mechanism, the Commission defined as “Eligible Recovery” the amount of intercarrier compensation revenue reductions that carriers would be eligible to recover through a combination of an end-user charge, the Access Recovery Charge (ARC), 47 CFR §§ 51.915(e), 51.917(e); USF/ICC Transformation Order, 26 FCC Rcd at 17958, para. 852.
 and, where eligible and if a carrier elects to receive it, Connect America Fund Intercarrier Compensation (CAF ICC) support. 47 CFR §§ 51.915(f), 51.917(f); USF/ICC Transformation Order, 26 FCC Rcd at 17957, para. 850.  Beginning July 1, 2019, price cap incumbent LECs are no longer eligible to receive CAF ICC support.  47 CFR § 51.915(f)(5).
  A carrier’s Eligible Recovery is based on a decreasing percentage of the cumulative reduction in revenue each year resulting from the intercarrier compensation reform transition. USF/ICC Transformation Order, 26 FCC Rcd at 17957-58, paras. 850-51. 

4. In the Rate-of-Return Reform Order, the Commission modified the rules governing the provision of high-cost universal service support for rate-of-return carriers. Rate-of-Return Reform Order, 31 FCC Rcd at 3089, para. 1. 
  The Commission allowed rate-of-return carriers the option of electing Alternative Connect America Cost Model (A-CAM) support for a term of 10 years in exchange for meeting defined build-out obligations. Id. at 3094-117, paras. 17-79. 
  For rate-of-return carriers not electing model-based support, the Commission modernized the existing Interstate Common Line Support (ICLS) rules to provide support in situations where the customer no longer subscribes to traditional regulated local exchange voice service, i.e., where the customer purchases only stand-alone broadband. Id. at 3117-57, paras. 80-187. 
  This revised form of support is known as Connect America Fund Broadband Loop Support (CAF BLS). 47 CFR § 54.901.
  As part of its implementation of the Rate-of-Return Reform Order, the Commission revised certain cost allocation and tariffing rules for rate-of-return carriers to introduce supported Consumer Broadband-only Loop (CBOL) services. Rate-of-Return Reform Order, 31 FCC Rcd at 3157-62, paras. 188-204. 
  The Commission required rate-of-return carriers offering supported stand-alone broadband loops to move costs for these loops from the special access service category to a new CBOL service category. Id. at 3158-59, paras. 190-91. 
  The amount to be moved is to be determined consistent with the part 36 and part 69 cost allocation rules. See Connect America Fund et al., WC Docket No. 10-90 et al, Second Order on Reconsideration and Clarification, 33 FCC Rcd 2399, 2402-03, paras. 10-13 (2018) (Rate-of-Return Reform Reconsideration Order); 47 CFR §§ 69.311(b), 69.416.  

5. The Commission also adopted rules governing the tariffing of CBOL rates, including a $42 per-loop, per-month rate cap for rate-of-return carriers electing model-based or Alaska Plan support and a cost-based rate-setting methodology for rate-of-return carriers receiving CAF BLS. Rate-of-Return Reform Order, 31 FCC Rcd at 3459-60, paras. 194, 197-98; 47 CFR §§ 69.132(c)-(d).
  For rate-of-return carriers electing model-based support, the Commission determined that such carriers would not be eligible to participate in the National Exchange Carrier Association, Inc. (NECA) common line pooling mechanism but could elect to have NECA tariff their common line rates. Rate-of-Return Reform Order, 31 FCC Rcd at 3160, paras. 195-96; 47 CFR § 69.3(e)(9).
  The Commission further required rate-of-return carriers to impute an amount equal to the ARC they assess on voice/broadband lines to their supported CBOL service. Rate-of-Return Reform Order, 31 FCC Rcd at 3161-62, para. 203.
  Rate-of-return carriers must also true-up the imputation made two years prior to the most recent annual filing. Id.; see 47 CFR § 51.917(f).
 
6. In the Rate-of-Return BDS Order, the Commission permitted rate-of-return carriers receiving model-based or fixed high-cost universal service support (electing carriers) to voluntarily elect to transition certain business data service (BDS) offerings from rate-of-return to incentive regulation. Rate-of-Return BDS Order, 33 FCC Rcd at 10404, para. 1; 47 CFR §§ 61.50, 69.801 et seq.  “Business data services” (formerly special access) as used herein refers to time-division multiplexing (TDM)-based transport and end user channel termination services.  Rate-of-Return BDS Order, 33 FCC Rcd at 10404-5, paras. 1-4.  The Commission allowed electing carriers to elect BDS incentive regulation for “other generally lower capacity non-packet based services that are commonly considered special access services,” including “metallic services, voice grade services, audio services, and video services which are typically references in the special access services section of A-CAM carriers’ interstate tariffs.”  Id. at 10415-16, para. 32 & n.85 (citing NECA Tariff F.C.C. No. 5 § 7); 47 CFR § 69.801(a) (defining “business data services”).  
  For electing carriers’ high capacity (above DS3) transport and end user channel termination services, the Commission eliminated ex ante pricing regulation and granted forbearance from tariffing requirements related to those services. Rate-of-Return BDS Order, 33 FCC Rcd at 10404, para. 1.
  The Commission adopted a competitive market test for electing carriers’ low capacity (DS3 and below) end user channel termination services to identify study areas where sufficient competition justifies removing ex ante pricing regulation and tariffing requirements for these services. Id. at 10432-40, 10446-47, paras. 78-104, 121-124; see 47 CFR §§ 61.50(j), 69.803(c).  But see Price Cap Business Data Services; Regulation of Business Data Services for Rate-of-Return Local Exchange Carriers, WC Docket Nos. 21-17, 17-144, Notice of Proposed Rulemaking, Third Further Notice of Proposed Rulemaking, and Order, 40 FCC Rcd 6275, 6295-96, paras. 67-69 (2025) (2025 BDS Order and/or NPRM) (temporarily waiving requirement for the Bureau to update the competitive market test results until the Commission completes its review of the record filed in response to the Notice of Proposed Rulemaking).
    The Commission preserved ex ante pricing regulation while permitting contract-based tariffs and volume and term discounts for electing carriers’ low capacity (DS3 and below) transport and end user channel termination services offered in noncompetitive study areas. Rate-of-Return BDS Order, 33 FCC Rcd at 10415-16, paras. 31-32; 47 CFR § 61.50(g). 
  The Commission also adopted a methodology for electing carriers’ low capacity (DS3 and below) BDS to establish their initial and going forward rates under incentive regulation. Rate-of-Return BDS Order, 33 FCC Rcd at 10416-22, paras. 33-44.
  The Commission granted electing carriers forbearance from cost assignment rules and separations rules and related reporting requirements, Id. at 10409-10, 10444, 10447-51, paras. 16, 116, 125-37.  The Commission defined the term “Cost Assignment Rules” to include various rules from Parts 32, 63, 64, 65, and 69 of the Commission’s rules and section 220(a)(2) of the Act.  Id. at 10447, para. 126, n.325.
 and allowed electing carriers subject to the separations category relationship freeze to opt out of the freeze and update their category relationships. Id. at 10422-26, paras. 45-59; see Jurisdictional Separations and Referral to the Federal-State Joint Board, CC Docket No. 80-286, Report and Order, 39 FCC Rcd 12713, 12717, para. 14 (2024) (extending the part 36 jurisdictional separations freeze for up to six years until December 31, 2030, if necessary).
 
7. To prevent internal cost-shifting among study areas, the Commission required “electing carriers to elect incentive regulation at the holding company-level for study areas in all states where that carrier receives fixed support.” Rate-of-Return BDS Order, 33 FCC Rcd at 10413, para. 22; 47 CFR 61.50(a) (“A rate-of-return carrier may elect to offer business data services subject to incentive regulation pursuant to this section [section 61.50] only if all affiliated rate-of-return carriers meeting the requirements of…[section 61.50(b)]…make the election.”).
  Although a voluntary election, the Commission made the election irrevocable, prohibiting carriers from returning their study areas to rate-of-return regulation. Rate-of-Return BDS Order, 33 FCC Rcd at 10413, para. 25.
  
8. The Commission adopted a 36-month transition period for electing carriers during which tariffing would be permissive followed by mandatory detariffing. Id. at 10452, para. 143. 
  The Commission required electing carriers to detariff their high capacity (above DS3) transport and end user channel termination services within 36 months after the effective date of their BDS election and required electing carriers to detariff their low capacity (DS3 and below) end user channel termination services in competitive study areas within 36 months after those services were deemed competitive. Id. at 10452-53, paras. 140-45; 47 CFR § 61.50(k)(3). 
  Additionally, the Commission required electing carriers to freeze their tariffed BDS rates no longer subject to ex ante pricing regulation for six months after electing incentive regulation or after study areas offering low capacity end user channel termination services were deemed competitive, provided those rates remain tariffed. Rate-of-Return BDS Order, 33 FCC Rcd at 10452, paras. 142-43. 
  Finally, the Commission required electing carriers to exit the NECA traffic sensitive pool for their BDS offerings but allowed electing carriers to continue participating in the NECA traffic sensitive tariff pool for access services other than BDS. Rate-of-Return BDS Order, 33 FCC Rcd at 10445, para. 119; 47 CFR § 61.50(d).  The NECA traffic-sensitive pool is contained in NECA F.C.C. Tariff No. 5.  Other BDS offerings are contained in NECA F.C.C. Tariff No. 6. 
   
9. More recently, the Commission has sought comment on a number of proposals that could potentially affect the annual tariff filing and TRP filing process.  In August 2025, the Commission sought comment on eliminating rate regulation and tariffing of business data services. 2025 BDS NPRM, 40 FCC Rcd at 6282-95, paras. 16-66 (2025).
  The comment cycle for that proceeding has concluded.  Further, in February 2026 the Commission sought comment on transitioning all originating and terminating switched access intercarrier charges to bill-and-keep, eliminating ex ante rate regulation of switched access end user charges, detariffing these intercarrier and end-user charges, and phasing-out CAF ICC. Reforming Legacy Rules for an All-IP Future; Accelerating Network Modernization, WC Docket Nos. 25-311, 25-208, Notice of Proposed Rulemaking, FCC 26-11 (rel. Feb. 19, 2026).  
  Comments for that proceeding are due May 26, 2026, and reply comments are due June 22, 2026. FCC, Reforming Legacy Rules for an All-IP Future; Accelerating Network Modernization, 91 Fed. Reg. 14408 (Mar. 24, 2026).  
  
III. IMPLEMENTATION OF THE COMMISSION’S ORDERS
A. Annual Tariff Filing Rate-Level Limitation
10. Section 69.3(a) of the Commission’s rules requires carriers to file an access charge tariff with the Commission for a two-year period with a scheduled effective date of July 1 and limits such tariff filings to rate-level changes. 47 CFR § 69.3(a).  
  Similarly, section 69.3(h) of the Commission’s rules requires price cap carriers to file an access charge tariff filing with the Commission for a one-year period with a scheduled effective date of July 1 and limits such tariff filings to changes in the Price Cap Indexes, rate level changes, and the incorporation of new services into the affected indexes. Id. § 69.3(h).
  We find good cause to waive the rate level change limitations in section 69(a) and (h) of the Commission’s rules in order to facilitate implementation of non-rate-level reforms associated with the USF/ICC Transformation Order, Rate-of-Return Reform Order, and Rate-of-Return BDS Order. Id. § 69.3(a), (h).
  This waiver is consistent with actions the Bureau has taken in prior annual access tariff filing periods. See, e.g.,2025 TRP Order, 40 FCC Rcd at 3064, para. 9; see also 47 CFR § 1.3 (“Any provision of the rules may be waived by the Commission on its own motion or on petition if good cause therefore is shown.”); Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1969) (Northeast Cellular) (citing WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969) (WAIT Radio)) (explaining that waivers must show special circumstances warranting a deviation from the general rule, and show such a deviation will serve the public interest). 
  
B. Exogenous Costs
11. Rate-of-return carriers receiving model-based universal service support may recover increases in telecommunications relay service (TRS) fees, regulatory fees, and North American Numbering Plan Administration (NANPA) fees (collectively, exogenous costs) attributable to common line through tariffed end-user charges and CAF ICC support. Exogenous costs are those costs incurred by the carrier that are “triggered by administrative, legislative or judicial action beyond the control of the carriers…that should result in an adjustment to the cap in order to ensure that the price cap formula does not lead to unreasonably high or unreasonably low rates.”  Policy and Rules Concerning Rates for Dominant Carriers, CC Docket No. 87-313, Second Report and Order, 5 FCC Rcd 6786, 6807, para. 166 (1990); see generally id. at 6808-10, paras. 166-90.
  We remind model-based rate-of-return carriers that they must first look to recover exogenous cost increases attributable to common line through their subscriber line charges (SLCs), special access surcharges, and line port charges up to the maximum rate caps permitted for these carriers by the Commission’s rules. See 47 CFR §§ 69.104(s), 69.115(f), 69.130(b). 
  To the extent that model-based rate-of-return carriers are charging maximum SLCs, special access surcharges, and/or line port charges, they may recover otherwise unrecoverable exogenous cost increases attributable to common line through Eligible Recovery (ARCs, then, where eligible and if they so elect, CAF ICC support). See Material to be Filed in Support of 2012 Annual Access Tariff Filings, WCB Pricing File No. 12-08, Order, 32 FCC Rcd 3960, 3962-63, paras. 6-7 (WCB/PPD 2012).
  Model-based rate-of-return carriers that are charging less than the maximum SLCs, special access surcharges, and/or line port charges permitted for these carriers See 47 CFR §§ 69.104(s), 69.115(f), 69.130(b). 
 are reminded that they may not recover any portion of exogenous cost increases attributable to common line through Eligible Recovery. See id. § 51.917(e), (f).
  
12. We request that model-based rate-of-return carriers that voluntarily reduce their SLCs, special access surcharges, and/or line port charges below the maximums allowed under the Commission’s rules and seek to recover exogenous cost increases attributable to switched access (other than common line) through Eligible Recovery continue to maintain and make available upon request to Commission staff a worksheet reporting the portions of the total increases attributable to common line, switched access (other than common line), and special access. See 2025 TRP Order, 40 FCC Rcd at 3065, para. 13.
  This will ensure model-based rate-of-return carriers that voluntarily reduce common-line rates do not add exogenous cost increases attributable to common line to Eligible Recovery for recovery through ARCs or CAF ICC support. See 47 CFR § 51.917(d)(1)(vii) (requiring rate-of-return carriers to reduce Eligible Recovery to the extent it receives duplicative recovery for any costs or revenues from Eligible Recovery and another source).  
  We ask that this worksheet be prepared twice, once for the original filing, and again as support for the two year true-up. See 2025 TRP Order, 40 FCC Rcd at 3064-65, para. 11.  

C. Rate-of-Return Carriers’ Consumer Broadband-Only Loop (CBOL) Rates
13. Pursuant to the USF/ICC Transformation Order, all rate-of-return carriers must annually file a TRP each year to comply with the requirements of sections 51.917(d)(1)(iv), and 51.917(e) of the Commission’s rules. 47 CFR § 51.917(d)(1)(iv), (e).
  Specifically, we remind rate-of-return carriers that provide CBOL service and receive CAF BLS that they are required to revise their CBOL rates to reflect the level of CAF BLS they expect to receive this coming tariff year. Rate-of-Return Reform Reconsideration Order, 33 FCC Rcd at 2403, para. 13. 
  Rate-of-return carriers subject to section 61.38 of the Commission’s rules are reminded that they must base rate-of-return regulated rates for the coming tariff year on new cost studies. Id. at 2402-03, paras. 9-13.
  We also remind rate-of-return carriers subject to section 61.39 of the Commission’s rules that they may base rates for services subject to rate-of-return regulation on last year’s cost studies, or may elect to conduct new cost studies. Id.  
  
14. We remind rate-of-return carriers that offer CBOL service that they are responsible for ensuring that all relevant carrier data is reflected in TRPs filed with the Commission, whether CBOLs are provided on a tariffed or detariffed basis.  Thus, we remind carriers receiving CAF BLS that are tariffing a CBOL rate, the filing entity—whether the carrier, NECA, or consultant—must include in the TRP the data necessary to determine the maximum permitted CBOL rate. 47 CFR § 69.132(c) (“[T]he single-line rate or charge shall be computed by dividing one-twelfth of the projected annual revenue requirement for the Consumer Broadband-Only Loop category (net of the projected annual Connect America Fund Broadband Loop Support attributable to consumer broadband-only loops) by the projected average number of consumer broadband-only service lines in use during such annual period.”).
  Similarly, we remind the entity filing special access rates for a rate-of-return carrier that they are required to include in the TRP the special access costs reallocated to the CBOL category and the special access costs, net of that reallocation, i.e., the revenue requirement on which special access rates are based.  Carriers that have detariffed their CBOL rates should provide the required information related to those rates in the relevant portion of the TRP.  
15. In the Rate-of-Return Reform Order, the Commission required rate-of-return carriers to impute to their supported CBOL lines an amount equal to the ARC they assess on voice/broadband lines. Rate-of-Return Reform Order, 31 FCC Rcd at 3161-62, para. 203.
  We remind carriers that this ARC imputation applies to all supported lines, and is calculated separately for each type of broadband-only customer group (i.e., residential, single-line business, or multi-line business). 47 CFR § 51.917(f)(4); see Rate-of-Return Reform Order, 31 FCC Rcd at 3161-62, para. 203.
  We also remind rate-of-return carriers that calculate CAF ICC support to reflect imputed ARC revenues from CBOL lines and remind rate-of-return carriers that calculate Eligible Recovery to reflect the true-up of the imputation made two years ago. Rate-of-Return Reform Reconsideration Order, 33 FCC Rcd at 2404, paras. 16-17; see 47 CFR § 51.917(f).
 
IV. PRICE CAP TARIFF REVIEW PLAN
16. Sections 61.43 and 69.3(h) of the Commission’s rules requires price cap carriers to file tariffs each year that meet the notice requirements of section 61.58 of the Commission’s rules with a scheduled effective date of July 1. 47 CFR §§ 61.43, 69.3(h), 61.58.
  Section 69.3(h) also limits price cap annual tariff filings to changes in the Price Cap Indexes, rate level changes (with corresponding adjustments to the affected Actual Price Indexes and Service Band Indexes), and the incorporation of new services into the affected indexes as required by section 61.49 of the Commission’s rules. Id.
  We outline the 2026 price cap annual access TRPs that comply with these existing requirements below.  As noted above, price cap carriers may, but are not required to, use the 2026 price cap annual TRPs or may submit TRP worksheets developed by the carrier; the 2026 price cap annual TRPs were developed by Commission staff to ensure compliance with the Commission’s rules.
A. Price Cap TRPs
1. ARC Workbooks
17. The ARC workbooks consist of three individual workbooks that demonstrate the calculations necessary to determine an ARC rate.  These workbooks were created to comply with sections 51.915(e) and (f) of the Commission’s rules, and include the 2026 Rate Ceiling, 2026 Tariff Rate Comparison, and 2026 True Up workbooks. 47 CFR § 51.915(e)-(f).
 
2. Eligible Recovery Workbook
18. The 2026 Eligible Recovery workbook calculates the amount of Eligible Recovery a price cap carrier is entitled to receive pursuant to section 51.915(d) of the Commission’s rules. Id. § 51.915(d).
  This year, the Eligible Recovery workbook has been modified to change formulas in compliance with section 51.915(d)(viii) of the Commission’s rules. Id. § 51.915(d)(1)(viii).
  
3. ICC Summary Workbook
19. The 2026 Price Cap Summary workbook provides a summary of data contained in the ARC workbooks (2026 Rate Ceiling, 2026 Tariff Rate Comparison, and 2026 True Up workbooks) and 2026 Eligible Recovery workbook. 
4. IND1 Worksheet
20. The IND1 worksheet displays price cap indices (PCIs), actual price indices (APIs), service band indices (SBIs), and upper SBI limits.  There are no changes to this worksheet.  For the special access basket, to assist in verifying the historical indices reported in IND1, we request that price cap carriers continue to file workpapers that identify transmittals in which the current index levels became effective.
5. CAP Worksheet
21. Price cap carriers develop the End User Common Line (EUCL) Charge, the Presubscribed Interexchange Carrier Charge (PICC) and Carrier Common Line (CCL) rates, which are the rates that recover common line, marketing and transport interconnection (CMT) revenue, on CAP-1, CAP-2, CAP-3, CAP-4, and CAP-5. 
22. We request that price cap carriers that price certain common line rate elements separately by jurisdiction within a study area to develop such individual rates, instead of a roll up or average rate, on the CAP-1J form. 
6. PCI1 Worksheet
23. The PCI1 worksheet displays the calculation of the proposed PCIs for the price cap baskets and includes the following data: (1) the Gross Domestic Product Price Index (GDP-PI) measuring inflation; (2) the productivity offset (X-Factor); The X-Factor is set pursuant to section 61.45 of the Commission’s rules.  Id. § 61.45.
 (3) the exogenous cost change (Z); (4) the base-year (calendar-year 2023) revenue (R) for each basket; (5) the weighting factor (w) used in computing the PCIs; and (6) the immediately preceding PCIs.  There are no revisions to this worksheet.
7. SUM1 Worksheet
24. This is a summary worksheet displaying the revenues in baskets and categories.  It displays the base-year demand multiplied by: (1) rates at last PCI update; (2) current rates; and (3) proposed rates.  SUM1 calculates the difference in revenues using base-year demand, under current and proposed rates.  It also displays “R,” the revenue variable in the PCI formula that equals base period demand multiplied by rates at last PCI update.  There are no revisions to the SUM1 worksheet.
8. Exogenous Costs Workbook and Worksheets 
25. The 2026 Template for Exogenous Cost Calculations workbook is used to perform the detailed set of calculations that yield the exogenous cost adjustments.  These exogenous cost adjustments are transferred to the price cap ILEC TRPs used to set common line and special access rates.
26. The EXG1 worksheet displays the exogenous cost changes to the PCIs attributable to any: (1) sale of exchanges; (2) FCC regulatory fees; (3) excess deferred taxes; (4) amortization of investment tax credits; (5) low end adjustment calculations; (6) fees associated with TRS; (7) changes in the allocation of costs between regulated and unregulated activities; (8) NANPA expenses; (9) removal of thousand block number pooling; or (10) other exogenous cost changes the price cap carriers may file.  There are no revisions to the EXG1 worksheet.  The EXG2 worksheet displays the net exogenous shifts related to bands and zones. There are no revisions to the EXG2 worksheet.  
27. We remind price cap carriers, pursuant to our rules, to reflect an exogenous cost adjustment for TRS in a mid-September filing to incorporate the final contribution factor for tariff year 2025-26 in rates to become effective October 1, 2026 as this factor was not available by May 1, 2026. 47 CFR § 61.45(a) (“Price cap local exchange carriers…shall maintain updated PCIs to reflect the effect of mid-year exogenous cost changes”); id. §§ 61.45(b)(1)(i), (d).  
  We also remind price cap carriers that the exogenous cost adjustment for TRS shall be “grossed up” to spread the entire adjustment over the remaining months in the tariff year. See 47 CFR §§ 61.45(a), (b)(1)(i), (c), (d).
  The exogenous cost adjustments for regulatory and NANPA fees also shall be reflected in rates that take effect October 1, 2026, as these fees are fiscal-year obligations. See 47 CFR §§ 61.45(a), (b)(1)(i), (c), (d).
  The exogenous cost adjustment for TRS for tariff year 2025-26 shall be grossed up and reflected in rates effective October 1, 2026, because the final contribution factor was not available by May 1, 2026. See id. 
  Consistent with the Commission’s existing rules, price cap carriers therefore must make an exogenous cost adjustment in this year’s annual filing to remove the effect of that gross up from existing rates; otherwise, price cap carriers will over- or under-recover their TRS exogenous costs beginning July 1, 2026. See 47 CFR § 61.45(a).
  Carriers that made an exogenous cost adjustment for TRS to the special access basket PCI and SBI upper limits or to the CMT-revenue-per-line constraint in their mid-September 2025 TRPs must remove the effect of the gross-up from these parameters, regardless of whether they changed their rates on October 1, 2025 or subsequently.  Finally, price cap carriers have the option of not making a mid-year exogenous cost and rate adjustment filing if the total amount of such adjustments would either increase rates or meet a de minimis threshold equal to the current standard tariff filing fee ($1,040), applied on the same basis as the tariff filing for which the filing fee is paid. See 47 CFR § 1.1105.  

9. RTE1 Worksheet
28. These worksheets display information used to compute the APIs, SBIs, and upper SBI.  They display base year 2025 demand, rates based on the last PCI update, current rates, proposed rates, and three different revenue figures computed by multiplying the 2025 demand by rates based on the last PCI update, current rates, and proposed rates, respectively.  The RTE1 worksheets enable the Commission to verify the accuracy of “R,” the revenue variable in the PCI formula that equals base period demand multiplied by rates based on the last PCI update.  Demand and price data are reported in the aggregate under the primary rate elements of each category.  The level of aggregation in the RTE1 worksheets allows rapid, consistent verification of index calculations across all companies.  There are no revisions to these worksheets.
10. Rate Detail Workbook
29. We remind price cap carriers that they are required to provide a workbook that displays complete rate element detail, i.e., demand, rates based on the last PCI update, existing rates, and proposed rates for each rate element subject to price caps, and revenues at each of these rates. See 47 CFR §§ 61.43, 61.45-61.47. 
  For each rate element, price cap carriers should display the rate element name, jurisdiction, base-period demand, rates based on the last PCI update, current rates, and proposed rates, and revenues based on each of these rates multiplied by base period demand.  Price cap carriers also may include a rate-identifying code. See id.
  The revenue amounts for baskets and categories are totaled to support the revenue amounts in RTE1.  Each row of this workbook corresponds to only one rate element.  The rows reflect the basket and service category sequence used in RTE1.  There are no revisions to this workbook. 
11. Services Excluded from Price Caps
30. For the 2026 filing, we request price cap carriers to provide a list of services that are tariffed but excluded from price caps.  We request that this list identify the tariff section containing each service.  We request rate element details for the following categories: Special Construction/Individual Case Basis; End User Charges (e.g., USF charges, LNP); Government Services (e.g., FTS); Miscellaneous/Other (e.g., engineering services); and services that were in price caps but have been removed (e.g., interexchange services).  It is not necessary to include in this list services that are not subject to price cap regulation pursuant to the USF/ICC Transformation Order or Price Cap BDS Order. See USF/ICC Transformation Order, 26 FCC Rcd 17663; Business Data Services in an Internet Protocol Environment et al., WC Docket No. 16-143 et al., Report and Order, 32 FCC Rcd 3459 (2017), remanded in part sub nom., Citizens Telecomms. Co. of Minn., LLC v. FCC, 901 F.3d 991 (2018).  
  For the remaining services included in the list, we request price cap carriers to identify the service, indicate whether the rate is recurring or non-recurring, and the authority relied on to remove the service, where applicable.  We also request that price cap carriers clearly state in their cover letter where this information can be found in their TRP.
B. Miscellaneous
31. In addition to the above specifications, we request that price cap carriers include with their support materials a list of all currently applicable part 69 waivers.  The list should include the following information: (1) a citation to the Commission or Bureau order granting the waiver; (2) a brief description of the waiver, including whether any new rate elements were authorized; and (3) the basket and, if applicable, service category of each rate element affected by the waiver.
V. RATE-OF-RETURN TARIFF REVIEW PLAN
A. Modifications to the Rate-of-Return TRPs
32. In the 2026 rate-of-return TRP, we implement certain modifications required by the Commission in the USF/ICC Transformation Order, the Rate-of-Return Reform Order, and Rate-of-Return BDS Order.  These modifications are reflected in the workbooks referenced below.  In addition, we attach a TRP for rate-of-return carriers subject to incentive regulation for certain BDS offerings.  These TRPs may be found at the webpage provided in the Appendix.  
33. For special access, common line, and CBOL services, we request that section 61.38 carriers that elect to complete new cost studies should submit one of two versions of the workbooks related to rate-of-return regulation, as applicable. See 47 CFR § 61.38.
  The “2026 Annual Filing RoR CAF-BLS” and “2026 Annual Filing RoR Fixed Support” workbooks apply to section 61.38 carriers that receive CAF-BLS and fixed support (A-CAM, Enhanced A-CAM, or Alaska Plan), respectively. See generally Rate-of-Return Reform Order, 31 FCC Rcd at 3094-3117, paras. 17-79 (adopting a voluntary path for rate-of-return incumbent LECs to elect model-based support for a term of 10 years in exchange for meeting defined build-out obligations); Connect America Fund et al., Report and Order and Further Notice of Proposed Rulemaking, 31 FCC Rcd 10139 (2016) (providing a one-time opportunity for Alaskan rate-of-return incumbent LECs to elect to receive support frozen at adjusted 2011 levels for a 10-year term in exchange for meeting individualized performance obligations). 
  
34. For special access and CBOL services, we request that section 61.39 carriers that receive CAF-BLS support attributable to CBOL lines or receive fixed support and choose to do new cost studies this year submit the “2026 61.39 ILEC Special Access Reallocation” workbook. See 47 CFR § 61.39.
  This workbook shows the special access costs reallocated to the CBOL category and the special access costs, net of that reallocation, for section 61.39 carriers that receive CAF-BLS support attributable to CBOL lines or fixed support, and calculates the maximum permitted CBOL rate for 61.39 carriers that receive CAF BLS support.  
35. For switched access services, we request that rate-of-return carriers complete the “2025 RoR ILEC ICC Data” workbook.  This workbook contains worksheets for carriers to determine their intrastate, interstate, and reciprocal compensation rates and Eligible Recovery, pursuant to sections 51.909(b)-(j) and (l)-(o), 51.705(c)(5) and 51.917(d) of the Commission’s rules. See id. §§ 51.909(b)-(j) and (l)-(o), 51.705(c)(5), 51.917(d).
  We also request that these carriers complete the ARC- and CAF-ICC-related workbooks: Carriers that calculate a weighted average business ARC rate rather than using separate single line business and multiline business ARC rates as part of the imputed ARC revenue from projected CBOL lines calculation must explain this methodology in detail and submit the data and the calculations used to determine this weighted average rate.
 (i) the “2026 Rate Ceiling CAF RoR ILEC” or the “2026 Rate Ceiling No CAF RoR ILEC;” and (ii) the “2026 Tariff Rate Comp CAF RoR ILEC” or the “2026 Tariff Rate Comp No CAF RoR ILEC” workbooks.  The “CAF” and “No CAF” versions of these workbooks, respectively, are for carriers that do and do not receive CAF ICC this year.  These workbooks are modified to the extent necessary to implement the requirements of the USF/ICC Transformation Order. See USF/ICC Transformation Order, 26 FCC Rcd at 17934-35, para. 801.
  We also request that these carriers  complete the “2026 True Up RoR ILEC” workbook. See 47 CFR §§ 61.38, 61.39.
  We also request that carriers summarize the data from these workbooks in the “2026 RoR ILEC Summary” workbook.
36. NECA prepared TRPs for rate-of-return carriers that elected incentive regulation for BDS offerings pursuant to the Rate-of-Return BDS Order.  These TRPs are for carriers for which NECA files special access rates, and these TRPs or their equivalents may be used by carriers that file their own special access rates.  The “TY 2026-2027 Holding Company BDS Annual TRP” is for carriers that establish a PCI, API, SBIs, and upper SBI limits at the holding company level.  The “TY 2026-2027 Individual Study Area BDS Annual TRP” is for carriers that establish PCIs, APIs, SBIs, and upper SBI limits at the study area level.  These workbooks calculate the price cap indices and exogenous cost adjustments pursuant to section 61.50, display the relevant rates and revenues, including the proposed rates for low capacity (DS3 or lower) TDM-based transport and end-user channel termination BDS services, other than end-user channel termination services in study areas deemed competitive, and demonstrate compliance of the proposed rates with section 61.50. 47 CFR § 61.50.
  
37. In the 2025 TRP Order, the Bureau instructed rate-of-return carriers that elected BDS incentive regulation to reflect exogenous cost adjustments for TRS, NANPA, and regulatory fees in a mid-year tariff filing effective October 1, 2025. 2025 TRP Order, 40 FCC Rcd at 3073-74, para. 42.  
  Any exogenous cost adjustment for TRS reflected in rates in effect October 1, 2025 had to be “grossed up” to spread the entire adjustment over the remaining months in the tariff year. Id.; see Wireline Competition Bureau Announces Posting of 2025 Tariff Review Plan for Exogenous Cost Filings by Rate-of-Return Carriers that Elected Incentive Regulation for Business Data Services, WC Docket Nos. 24-41, 17-144, Public Notice, 40 FCC Rcd 6862 (WCB 2025).
  Absent an exogenous cost adjustment in this year’s annual filing to remove the effect of the gross-up reflected in the exogenous cost adjustment for TRS, these carriers will over- or under-recover their TRS costs beginning July 1, 2026.  Accordingly, any gross-up amount reflected in existing rates through the exogenous cost adjustment on October 1, 2025 must be removed in this year’s annual filing via an exogenous cost adjustment.  Carriers that made an exogenous cost adjustment for TRS to the special access basket PCI and SBI upper limits in their mid-year 2025 TRPs must remove the effect of the gross-up from these indices, regardless of whether they changed their rates on October 1, 2025 or subsequently. Id. 
  The exogenous cost adjustment to remove the effect of the gross-up is reflected in the TRPs found at the webpage provided in the Appendix.  
38. We remind rate-of-return carriers that elected BDS incentive regulation to reflect exogenous cost adjustments for TRS, NANPA, and regulatory fees in a mid-September 2026 filing in rates to become effective October 1, 2026. See 47 CFR § 61.45(a) (“Price cap local exchange carriers…shall maintain updated PCIs to reflect the effect of mid-year exogenous cost changes”); see id. § 61.50(c) (Rate-of-return carriers subject to section 61.50 “shall employ the procedures outlined in §§ 61.42 through 61.49 to calculate rates for its business data services and adjust its indexes for those rates.”).
  Any exogenous cost adjustment for TRS reflected in rates in effect October 1, 2026 is required to be “grossed up” to spread the entire adjustment over the remaining months in the tariff year, as the final TRS contribution factor for tariff year 2025-26 was not available by May 1, 2026, and the TRS fees are tariff-year obligations. See 47 CFR § 61.45(b)(1)(1), (d); id. § 61.50(c).
  Rate-of-return carriers electing BDS incentive regulation have the option of not making a mid-year exogenous cost filing and rate adjustment if the total amount of such adjustments would either increase rates or meet a de minimis threshold equal to the standard tariff filing fee, applied on the same basis as the tariff filing for which the filing fee is paid. See 2025 TRP Order, 40 FCC Rcd at 3073-74, para. 42; 47 CFR § 1.1105. 
  
B. General Guidelines Applicable to NECA
39. We have not prepared a TRP for NECA for services other than BDS, although NECA may refer to the 2026 rate-of-return TRPs for guidance on the level of support materials to provide in its annual filing.  
VI. GENERAL INSTRUCTIONS
40. The following general instructions apply to all incumbent LECs.  These instructions pertain to the TRP and other documentation filed in support of access charges.  Carriers should continue to submit their data and formulas in Excel rather than values in PDF files. 
A. Revised TRPs
41. If an incumbent LEC files an amended transmittal revising its TRP after June 16, 2026, we request that the TRP is refiled in its entirety, rather than just the parts of the TRP that are changed.  The latest TRP filed becomes the TRP of record.  Other parts of the original filing, e.g., portions of the explanations, Description and Justification, and workpapers, may be omitted if unchanged by the revision.   
B. Certification
42. The filing of inaccurate or incomplete data may seriously detract from the ability of the Commission and interested parties to evaluate the revised rates.  We remind incumbent LECs that they must continue to certify that their historical and forecast data are accurate by including a signed statement that the support data are true, correct, and complete to the best of the carrier’s knowledge. See 47 CFR § 1.17. 
  This certification will apply to all data submitted in support of revised rates, including the data that are filed in the TRP.  Moreover, we remind incumbent LECs that they are required to make several additional certifications pursuant to requirements adopted in the Commission’s USF/ICC Transformation Order. USF/ICC Transformation Order, 26 FCC Rcd at 17987, para. 905 (“Carriers recovering eligible recovery will be required to certify annually that they are entitled to receive the recovery they are claiming and that they are complying with all rules pertaining to such recovery.”); see also id. at 17964-65, para. 862 & n.1664 (explaining that incumbent LECs receiving Eligible Recovery must certify as part of their tariff filings, to both the Commission and any state commission exercising jurisdiction over the incumbent LEC’s intrastate costs, that they are not seeking duplicative recovery in the state jurisdiction for any Eligible Recovery subject to the recovery mechanism).  
  These certifications should be displayed as the last pages in each company’s filing containing its TRP.  Incumbent LECs are also under a continuing legal obligation to correct any inaccurate or incomplete data subsequently discovered in the TRP or other support data. 
C. Compliance with the Paperwork Reduction Act
43. As is the case with each year’s TRPs, the 2026 TRPs contained in this Order contain modified information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA). Pub. L. No. 104-13; see 44 U.S.C. § 3507. 
  The TRP collections were approved by the Office of Management and Budget (OMB) under the PRA. See OMB, Notice of OMB Action, OMB Control No. 3060-0400 (dated Apr. 17, 2026) (expires Apr. 30, 2029), https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202602-3060-028.  In the submission to OMB, the Commission noted that it “updates the price cap and rate-of-return TRP every year to eliminate respondents’ requirements to file cost and demand data that may be more than two years old and to bring the TRP data into conformance with current Commission policies.”  FCC, OMB Control No. 3060-0400, Supporting Statement at 3 (dated March 2026), https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=202602-3060-028; 44 U.S.C. § 3507.
  In addition, we note that pursuant to the Small Business Paperwork Relief Act of 2002, Pub. L. No. 107-198; see 44 U.S.C. § 3506(c)(4).
 we previously sought specific comment on how the Commission might further reduce the information collection burden for small business concerns with fewer than 25 employees.
44. In this Order, we have assessed the effects on incumbent LECs of filing the TRP and have minimized the burden to the extent possible.  We minimize the regulatory burden on the incumbent LECs by deleting obsolete sections of the TRP that have not proven to be useful and by not requiring carriers to file historical data that was filed in previous years.
VII. ORDERING CLAUSES
45. Accordingly, IT IS ORDERED that, pursuant to sections 1, 4(i) and (j), 5, and 201-209 of the Communications Act of 1934, as amended, 47 U.S.C. §§ 151, 154(i)-(j), 155, 201-209, and sections 0.91 and 0.291 of the Commission’s rules, 47 CFR §§ 0.91, 0.291, this Order IS ADOPTED.
46. IT IS FURTHER ORDERED that, pursuant to sections 0.91, 0.291, and 1.3 of the Commission’s rules, 47 CFR §§ 0.91, 0.291, 1.3, section 69.3(a) and (h) of the Commission’s rules, 47 CFR § 69.3(a), (h), ARE WAIVED to the extent specified herein.
47. IT IS FURTHER ORDERED, pursuant to section 1.102(b) of the Commission’s rules, 47 CFR § 1.102(b), that this Order SHALL BE EFFECTIVE upon release.
						FEDERAL COMMUNICATIONS COMMISSION



Lynne H. Engledow
Chief, Pricing Policy Division
Wireline Competition Bureau
APPENDIX

2026 Tariff Review Plans:

www.fcc.gov/wireline-competition/2026-2027-tariff-review-plans
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