Sec. 51.513  Proxies for forward-looking economic cost.

    (a) A state commission may determine that the cost information 
available to it with respect to one or more elements does not support 
the adoption of a rate or rates that are consistent with the 
requirements set forth in Secs. 51.505 and 51.511. In that event, the 
state commission may establish a rate

[[Page 41]]

for an element that is consistent with the proxies specified in this 
section, provided that:
    (1) Any rate established through use of such proxies shall be 
superseded once the state commission has completed review of a cost 
study that complies with the forward-looking economic cost based pricing 
methodology described in Secs. 51.505 and 51.511, and has concluded that 
such study is a reasonable basis for establishing element rates; and
    (2) The state commission sets forth in writing a reasonable basis 
for its selection of a particular rate for the element.
    (b) The constraints on proxy-based rates described in this section 
apply on a geographically averaged basis. For purposes of determining 
whether geographically deaveraged rates for elements comply with the 
provisions of this section, a geographically averaged proxy-based rate 
shall be computed based on the weighted average of the actual, 
geographically deaveraged rates that apply in separate geographic areas 
in a state.
    (c) Proxies for specific elements. (1) Local loops. For each state 
listed below, the proxy-based monthly rate for unbundled local loops, on 
a statewide weighted average basis, shall be no greater than the figures 
listed in the table below. (The Commission has not established a default 
proxy ceiling for loop rates in Alaska.)

                                  Table                                 
------------------------------------------------------------------------
                                                                  Proxy 
                             State                               ceiling
------------------------------------------------------------------------
Alabama.......................................................    $17.25
Arizona.......................................................     12.85
Arkansas......................................................     21.18
California....................................................     11.10
Colorado......................................................     14.97
Connecticut...................................................     13.23
Delaware......................................................     13.24
District of Columbia..........................................     10.81
Florida.......................................................     13.68
Georgia.......................................................     16.09
Hawaii........................................................     15.27
Idaho.........................................................     20.16
Illinois......................................................     13.12
Indiana.......................................................     13.29
Iowa..........................................................     15.94
Kansas........................................................     19.85
Kentucky......................................................     16.70
Louisiana.....................................................     16.98
Maine.........................................................     18.69
Maryland......................................................     13.36
Massachusetts.................................................      9.83
Michigan......................................................     15.27
Minnesota.....................................................     14.81
Mississippi...................................................     21.97
Missouri......................................................     18.32
Montana.......................................................     25.18
Nebraska......................................................     18.05
Nevada........................................................     18.95
New Hampshire.................................................     16.00
New Jersey....................................................     12.47
New Mexico....................................................     18.66
New York......................................................     11.75
North Carolina................................................     16.71
North Dakota..................................................     25.36
Ohio..........................................................     15.73
Oklahoma......................................................     17.63
Oregon........................................................     15.44
Pennsylvania..................................................     12.30
Puerto Rico...................................................     12.47
Rhode Island..................................................     11.48
South Carolina................................................     17.07
South Dakota..................................................     25.33
Tennessee.....................................................     17.41
Texas.........................................................     15.49
Utah..........................................................     15.12
Vermont.......................................................     20.13
Virginia......................................................     14.13
Washington....................................................     13.37
West Virginia.................................................     19.25
Wisconsin.....................................................     15.94
Wyoming.......................................................     25.11
------------------------------------------------------------------------

    (2) Local switching.
    (i) The blended proxy-based rate for the usage-sensitive component 
of the unbundled local switching element, including the switching 
matrix, the functionalities used to provide vertical features, and the 
trunk ports, shall be no greater than 0.4 cents ($0.004) per minute, and 
no less than 0.2 cents ($0.002) per minute, except that, where a state 
commission has, before August 8, 1996, established a rate less than or 
equal to 0.5 cents ($0.005) per minute, that rate may be retained 
pending completion of a forward-looking economic cost study. If a flat-
rated charge is established for these components, it shall be converted 
to a per-minute rate by dividing the projected average minutes of use 
per flat-rated subelement, for purposes of assessing compliance with 
this proxy. A weighted average of such flat-rate or usage-sensitive 
charges shall be used in appropriate circumstances, such as when peak 
and off-peak charges are used.
    (ii) The blended proxy-based rate for the line port component of the 
local switching element shall be no less than $1.10, and no more than 
$2.00, per line

[[Page 42]]

port per month for ports used in the delivery of basic residential and 
business exchange services.
    (3) Dedicated transmission links. The proxy-based rates for 
dedicated transmission links shall be no greater than the incumbent 
LEC's tariffed interstate charges for comparable entrance facilities or 
direct-trunked transport offerings, as described in Secs. 69.110 and 
69.112 of this chapter.
    (4) Shared transmission facilities between tandem switches and end 
offices. The proxy-based rates for shared transmission facilities 
between tandem switches and end offices shall be no greater than the 
weighted per-minute equivalent of DS1 and DS3 interoffice dedicated 
transmission link rates that reflects the relative number of DS1 and DS3 
circuits used in the tandem to end office links (or a surrogate based on 
the proportion of copper and fiber facilities in the interoffice 
network), calculated using a loading factor of 9,000 minutes per month 
per voice-grade circuit, as described in Sec. 69.112 of this chapter.
    (5) Tandem switching. The proxy-based rate for tandem switching 
shall be no greater than 0.15 cents ($0.0015) per minute of use.
    (6) Collocation. To the extent that the incumbent LEC offers a 
comparable form of collocation in its interstate expanded 
interconnection tariffs, as described in Secs. 64.1401 and 69.121 of 
this chapter, the proxy-based rates for collocation shall be no greater 
than the effective rates for equivalent services in the interstate 
expanded interconnection tariff. To the extent that the incumbent LEC 
does not offer a comparable form of collocation in its interstate 
expanded interconnection tariffs, a state commission may, in its 
discretion, establish a proxy-based rate, provided that the state 
commission sets forth in writing a reasonable basis for concluding that 
its rate would approximate the result of a forward-looking economic cost 
study, as described in Sec. 51.505.
    (7) Signaling, call-related database, and other elements. To the 
extent that the incumbent LEC has established rates for offerings 
comparable to other elements in its interstate access tariffs, and has 
provided cost support for those rates pursuant to Sec. 61.49(h) of this 
chapter, the proxy-based rates for those elements shall be no greater 
than the effective rates for equivalent services in the interstate 
access tariffs. In other cases, the proxy-based rate shall be no greater 
than a rate based on direct costs plus a reasonable allocation of 
overhead loadings, pursuant to Sec. 61.49(h) of this chapter.

[ 61 FR 45619 , Aug. 29, 1996, as amended at  61 FR 52709 , Oct. 8, 1996]