Sec. 69.205  Transitional premium charges.

    (a) Charges that are computed in accordance with this section shall 
be asessed upon interexchange carriers or other persons that receive 
premium access in lieu of carrier charges that are computed in 
accordance with Secs. 69.106, 69.111, 69.112, and 69.118 of this part if 
any carrier or other person does not receive premium access, as this 
term is defined in Sec. 69.105.
    (b) Separate Local Switching transitional premium charges that are 
expressed in dollars and cents per access minute shall be computed for 
the LS1 and LS2 categories. The LS1 category shall consist of local dial 
switching for services other than MTS, WATS and services receiving 
access to the local switch equal to that received by MTS and WATS. The 
LS2 category shall consist of local dial switching for MTS, WATS and 
services receiving access to the local switch equal to that received by 
MTS and WATS.
    (c) Except for telephone companies subject to price cap regulation, 
as that term is defined in Sec. 61.3(v) of this chapter, the charge for 
an LS2 premium access minute shall be computed by dividing the premium 
Local Switching revenue requirement by the sum of the projected LS2 
premium access minutes and a number that is computed by multiplying the 
projected LS1 premium access minutes by the applicable LS1 transition 
factor. For all telephone companies, the charge for an LS1 premium 
access minute shall be computed by multiplying the charge for an LS2 
premium minute by the applicable LS1 transition factor. For telephone 
companies that are not subject to price cap regulation, as that term is 
defined in Sec. 61.3(v) of this chapter, the premium Local Switching 
revenue requirement shall be computed by subtracting the projected 
revenues from non-premium charges attributable to the Local Switching 
element from the revenue requirement for each element.
    (d) During each of the following years the LS1 transition factor 
shall be:
    (1) January 1, 1988 through March 31, 1989--.78;
    (2) April 1, 1989 through June 30, 1990--.86;
    (3) July 1, 1990 through June 30, 1991--.905;
    (4) July 1, 1990 through June 30, 1992--.955; and
    (5) July 1, 1992 through December 31, 1992--.98
    (e) Transitional premium charges that are computed in accordance 
with applicable requirements shall be assessed for the Transport element 
or elements. Such premium charges shall be designed to produce total 
annual revenue that is equal to the premium transport revenue 
requirement. The premium transport revenue requirement shall be computed 
by subtracting projected revenues from non-premium charges attributable 
to the Transport element or elements from the revenue requirement for 
such element or elements.

[ 54 FR 6293 , Feb. 9, 1989, as amended at  55 FR 42387 , Oct. 19, 1990;  55 FR 50559 , Dec. 7, 1990;  56 FR 33881 , July 24, 1991]

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