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Pacific seeks a twoyear extension of the Commission's previous waiver for the interstate portion of the Education First program through December 1999, so that it may continue to install and provide free ISDNequipped access lines to customers who commit to the Education First program during the extended signup period. Moreover, Pacific contends that the strong emphasis in the Telecommunications Act of 1996 on education and the fact that the Education First program facilitates the use of technology in schools establish the special  Y_4circumstances necessary to justify a waiver of the Commission's rules.[\_v5 zP 'ԍPacific Letter at 2. See Telecommunications Act of 1996, Pub. L. No. 104104, 110 Stat. 56, to be  zP 'codified at 47 U.S.C.  151 et seq. (1996 Act). Hereinafter, all citations to the 1996 Act will be to the 1996 Act as codified in the United States Code.[ The Commission received no comments regarding Pacific's request.  Y 4A III. DISCUSSION ă  Y 47.` ` Pursuant to section 1.3 of the Commission's rules, the Commission may grant  Y 4a waiver of a provision of those rules upon a showing of "good cause."D v5 xP_'ԍ47 C.F.R.  1.3.D As construed by the U.S. Court of Appeals for the District of Columbia Circuit, section 1.3 allows us to grant a waiver "only if special circumstances warrant a deviation from the general rule and  Y4such deviation will serve the public interest."&h v5 zP'ԍNortheast Cellular Telephone Co., L.P. v. Fed. Communications Comm'n, 897 F.2d 1164, 1166 (D.C.  zPt'Cir. 1990) (citing WAIT Radio v. Fed. Communications Comm'n, 418 F.2d 1153, 1159 (D.C. Cir. 1969), cert.  zP>'denied, 409 U.S. 1027 (1972)); Industrial Broadcasting, Co. v. Fed. Communications Comm'n, 437 F.2d 680, 683 (D.C. Cir. 1970).   Yc48.` ` For the reasons discussed below, we conclude that Pacific has demonstrated "good cause" for the grant of an extension of the Commission's December 1995 waiver. As  Y54an initial matter, consistent with our approach in the Waiver Order, we find that the California Commission's extension of its waiver for the intrastate portion of the Education First plan creates special circumstances that warrant an extension of the Commission's" V 0*f$f$n"  Y4previous waiver of section 69.104, now section 69.152 of the Commission's rules.ev5 zPy'ԍSee Waiver Order, 11 FCC Rcd at 4876,  16.e  Y49.` ` We further conclude that this deviation from the general rule will serve the  Y4public interest. As we determined previously in the Waiver Order, a limited waiver to facilitate Pacific's Education First program "is consistent with our statutory mandate to  Y4increase public access to the telecommunications network."VZv5 zP'ԍSee id. at 4877,  19.V We note, moreover, that section 254(b)(6) of the Telecommunications Act of 1996 establishes as a principle of universal service that "[e]lementary and secondary schools and classrooms . . . and libraries  YJ4should have access to advanced telecommunications services."JJv5 xP 'ԍ47 U.S.C.  254(b)(6).J We believe that Pacific's Education First program provides public interest benefits without adversely affecting either ratepayers that subscribe to Pacific's other services or competing providers of communication  Y 4and information services to schools and libraries.$ |v5 xP2'ԍ We note, however, that since Pacific is not offering its Education First program under the section 254 federal universal service program for schools and libraries, Pacific will not be eligible for universal service  zP'support identified in the Universal Service Order for this program at this time. See FederalState Board on  zP'Universal Service, CC Docket No. 9645, Report and Order,  464552, FCC 97157 (rel. May 8, 1997). Therefore, we will extend the waiver previously granted to Pacific.  Y 4 10.` ` As noted above, Pacific seeks to extend its waiver for a twoyear period, so that it will have an additional two years following the close of the Education First signup period to install ISDNequipped lines for participating customers and to provide those customers with 12 months of free service. Therefore, if the waiver is granted, Pacific would be required to resume collecting the EUCL charge from affected customers on January 1, 1999. Moreover, although we extend the term of this waiver for two years, the benefits of this waiver apply to each institution for not more than one 12month period.  Y4 11.` ` In extending this waiver, we readopt two of the three conditions imposed in  Y4the Waiver Order. Specifically, we need not reimpose the requirement that Pacific not attempt to recover any costs associated with its Education First program by increasing its interstate access rates, including CCL charges, because, under our revised access charge rules, Pacific and other LECs subject to price cap regulation that charge less than the maximum EUCL charge may not recover the difference between the amount collected and"h 0*f$f$A"  Y4the maximum from CCL charges or PICCs.wv5 zPy'ԍ47 C.F.R.  69.152(m); Access Charge Reform Order at  86.w Pacific, however, will be required to impute revenues foregone as a result of the extended waiver for purposes of calculating its interstate rate of return. Although the Commission eliminated sharing from price cap regulation in the  Y4Price Cap Fourth Report and Order,Zv5 zP'ԍPrice Cap Performance Review for Local Exchange Carriers, Access Charge Reform, CC Docket Nos. 941 and 96262, Fourth Report and Order, Second Report and Order,  148, FCC 97159 (rel. May 21, 1997). it retained the lowend adjustment mechanism, which is triggered by a carrier's interstate earnings falling below a presubscribed level. We further condition this waiver on Pacific continuing to submit to the Common Carrier Bureau those portions of the state monitoring reports, which it currently submits to the California Commission, that contain data on administrative costs and on the amount of service being provided under the program.  Y34t; IV. CONCLUSION ă  Y 4 12.` ` We conclude that Pacific has shown good cause for a waiver of section 69.152 of the Commission's rules, so that it may forgo assessing EUCL charges on ISDNenhanced lines installed to serve public and private schools (kindergarten through grade 12), public libraries, and community colleges in California pursuant to Pacific's Education First program. Therefore, we grant Pacific a waiver of those rules and permit Pacific to forego collecting EUCL charges for a 12month period from such entities through December 1999. Pacific must begin collecting EUCL charges from those entities for their ISDN lines on January 1, 2000. Pacific must continue to comply with the terms and conditions adopted in  YN4the Waiver Order, except as discussed above.  Y"4d$ V. ORDERING CLAUSE ă  Y4 13.` ` Accordingly, IT IS ORDERED that, pursuant to sections 201205 and section 4(i) of the Communications Act of 1934, as amended, 47 U.S.C.  201205 and  154(i), authority delegated pursuant to Sections 0.91 and 0.291 of the Commission's rules, 47 C.F.R.  0.91 and 0.291, and Section 1.3 of the Commission's rules, 47 C.F.R.  1.3, the petition for waiver filed by Pacific Bell and Nevada Bell IS GRANTED to the extent"0*f$f$'" Hprovided herein, and subject to the conditions set forth herein. ` `  hhCFEDERAL COMMUNICATIONS COMMISSION ` `  hhCA. Richard Metzger, Jr. ` `  hhCActing Chief, Common Carrier BureauH