PUBLIC NOTICE
FEDERAL COMMUNICATIONS COMMISSION
1919 M STREET. N.W.
WASHINGTON, D.C. 20554 ____________________ DA 97-1757
News media information 202/418-0500 Fax-On-Demand 202/418-2830 Internet: http://www.fcc.gov ftp.fcc.gov
Released: August 18, 1997
SNET files Petition for Waiver and/or Amendment of Part 61 
of the Commission's Rules Establishing an "X-Factor" of 6.5%
Pleading Cycle Established 
CCB/CPD 97-41
COMMENTS: September 17, 1997 
REPLY COMMENTS: October 2, 1997
On August 13, 1997, the Southern New England Telephone Company (SNET) filed a 
petition for waiver and/or amendment of Part 61 of the Commission's Rules, to establish a 
productivity offset of 6.5% and to apply, instead an X-Factor of 5.3%.
SNET elected to be regulated under price caps in 1991, and has chosen the lowest X- 
Factor available. SNET's interstate annual rates of return since 1991 have never been high 
enough to reach the sharing zone. It claims that it's earnings were so low that they fell below 
the lower formula adjustment mark, triggering the low-end adjustment. SNET also claims that 
it is the only elective price-cap local exchange carrier never to have been in the sharing zone and 
the only one to have applied for the low-end adjustment mechanism. SNET states that special 
circumstances make it unlikely that it will achieve cost saving and efficiencies sufficient to reach 
the target of 6.5% annual productivity growth. SNET further states, that requiring an annual 
adjustment to its price cap index based on a 6.5% X-Factor would drive it's interstate rate of 
return below 10.25%.
Interested parties may file comments on the Southern New England Telephone Company's 
petition no later than September 17, 1997. Replies must be filed by October 2, 1997. When 
filing comments and/or replies, please reference the internal file number: CCB/CPD 97-41.
An original and four copies of all comments and replies must be filed in accordance with 
Section 1.51(c) of the Commission's Rules, 47 C.F.R. § 1.15(c). In addition, one copy of each 
pleading must be filed with International Transcription Services (ITS), the Commission's 
duplicating contractor, at its office at 1231 - 20th Street, N.W., Washington, D.C. 20036 and one 
copy with the Chief, Competitive Pricing Division, Room 518, 1919 M Street, N.W.,Washington, 
D.C. 20554.
For further information contact, Wanda M. Harris, Competitive Pricing Division, Common 
Carrier Bureau, (202) 418-1530.
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