FCC Approves Adjustments to Average Schedule HCLS Formula

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On November 30, 2016, the National Exchange Carrier Association (NECA) filed proposed interim modifications to its 2016 average schedule formulas to be effective from January 1, 2017 through June 30, 2017. NECA seeks to revise the formulas to reflect the Federal Communications Commission’s (Commission) new limit on Operating Expenses, and new mechanism to recover broadband-only loop costs established in the Commission’s Rate of Return Reform Order. NECA planned to utilize the revised formulas in its December 19, 2016 tariff filing implementing the Rate of Return Order. The Commission’s Wireline Competition Bureau has approved the interim average schedule modifications as proposed by NECA on a conditional basis, subject to the tariff review process that will take place in connection with the tariff filing. The conditional nature of the approval will expire as of January 3, 2017, unless the Bureau takes action to suspend or reject the December tariff filing.

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