A-CAM Support vs. Traditional Support
As you probably know, the FCC has required each Rate-of-Return carrier to make a very important decision on your future interstate method of settlements by November 1, 2016. You are directed to choose either the FCC’s statistically driven Model (A-CAM), or your traditional Average Schedule or Cost Study methodology.
ICORE is working diligently to help you with this critical decision. We have studied the FCC Order and discussed the issue with NECA. Here is what we know at the moment, with more coming well before you must make your choice.
Average Schedule Companies: We will help you compare your specific A-CAM results against your traditional Average Schedule settlements. There are new formulas, which include the FCC’s first prescribed reduction to the interstate rate-of-return, effective July 1, 2016. Updated HCLS formulas, which include the reduced rate-of-return and certain other changes, will be filed shortly, to be effective January 1, 2017. These can be compared to your A -CAM support. We will help you with this process, and attempt to answer any questions and concerns you may have.
Cost Companies: We will help you compare your specific A-CAM results against your cost study, as restated using the reduced rate-of-return and reflecting other new changes to cost study rules, including limitations on operating and capital expenses. We will work with NECA to estimate as closely as possible these reductions in your future cost-based settlements. You will then have a realistic basis on which to compare future A-CAM to future cost study results. We will of course help you fully with this process.
Please call (610-928-3903) or email Chris Ulmer with any questions. We will be sure to provide you with as much additional information as possible as we move toward the November 1st deadline for making your selection.