§ 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 § § 51.505 and 51.511. In that event, the
   state commission may establish a rate 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   superseded once the state commission has completed review of a cost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 § § 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
          State         Proxy 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 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 § § 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 § 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 § § 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 § 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 § 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 § 61.49(h) of this chapter.

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

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