Section R14-2-1310. Pricing

A.      Pricing of Basic Communication Services.

1.        The incumbent local exchange carrier shall provide the Commission with price floor calculations for local exchange and long distance services to ensure the avoid- ance of anti-competitive pricing practices. A NELEC can price below an incumbent LEC’s TSLRIC price.

2.        Whenever the incumbent local exchange carrier intro- duces a new local exchange service or long distance ser- vice, or proposes to change the rate for an existing local exchange service or long distance service, the local exchange carrier shall provide to the Commission infor- mation that demonstrates that the proposed rate equals or exceeds a price floor calculation for that service using an imputation test described in subsection (C).

B.       Pricing of Interconnection Services by Local Exchange Pro- viders.

1.        Incumbent local exchange carriers shall establish the price of each interconnection service, including access to databases and other network functions as described in R14-2-1306, at a level equivalent to its TSLRIC-derived costs which may include an assignment of verifiable indi- rect costs or a 10% addition for indirect costs to the TSL- RIC direct costs at the choice of the incumbent LEC.

2.        Interim number portability shall be provided by the incumbent local exchange carrier at a price equal to TSL- RIC. Any compensation which would otherwise have been received had a local or EAS call to a forwarded number been terminated directly to a customer’s chosen carrier, should be passed through from the carrier from whose network the forwarded number is assigned, to the customer’s chosen carrier to whose network the number is forwarded.

C.      Imputation

1.        An incumbent local exchange carrier shall recover in the retail price of each telecommunications service offered by the company the TSLRIC of all nonessential, and the imputed prices of all essential services, facilities, compo- nents, functions, or capabilities that are utilized to provi- sion such telecommunications service, whether such service is offered pursuant to tariff or private contract.

2.        Imputation requirements of this Section shall be applied in a manner that will permit a carrier providing a service to a customer that is or that becomes eligible for universal service support by order of the Commission to provide such retail service at a price that is net of any Commis- sion-ordered universal service support funding, pursuant to the provisions of the Arizona Universal Service Fund rules.

Historical Note

Adopted effective September 6, 1996, under an exemp- tion as determined by the Arizona Corporation Commis- sion (Supp. 96-3).

Note

Editor’s Note: The Arizona Corporation Commission has determined that the following Section is exempt from the Attorney General approval provisions of the Arizona Administrative Proce- dure Act (A.R.S. § 41-1041) by a court order (State ex. rel. Corbin

v. Arizona Corporation Commission, 174 Ariz. 216 848 P.2d 301 (App. 1992)).