The FCC’s Wireline Competition Bureau recently issued a Public Notice establishing a pleading cycle for comments on NECA’s proposed modifications to the interstate average schedule formulas. Comments are due by March 13, and replies by March 28, 2017. If approved, the formulas will be effective for one year beginning July 1, 2017.
The proposed changes will increase total average schedule settlements by 0.74 percent, assuming constant demand. Individual company impacts will, of course, vary depending on company size, characteristics, and demand levels. The major structural change entails the Consumer Broadband-Only Loop (CBOL) settlement, where the current two formulas are being combined into one.
The proposed average schedule formulas, which were originally filed with the FCC on December 22nd , 2016, contain FCC-mandated changes including the phase down of the interstate rate of return, and limitations on operating and capital expenses.
If you are experiencing decreases in your new average schedule settlements that are larger than anticipated, ICORE would be happy to perform a cost feasibility study for you. If it has been a while since you’ve compared average schedule settlements against cost, this might be a particularly beneficial exercise.
Contact Chris Ulmer, 610-928-3903, or culmer@icorellc.com to schedule a cost feasibility study.
