WPC 2MBERKZ#|X  X-#Xj\  P6G;ynXP#"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+999999S9S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN!\{P2gEKX X-#Xj\  P6G;ynXP#"i~'^:DPddDDDdp4D48dddddddddd88pppX|pDL|pp||D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDdDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddxHxxHvppDXd<"dxtldpxxd y.X80,ɒX\  P6G;P7jC:,ynXj\  P6G;XPTimes New Romanxx`xpx xxxx@?2:  K< #|j "i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+999999S9S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN!\{P"i~'^:DPddDDDdp4D48dddddddddd88pppX|pDL|pp||D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDdDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddxHxxHvppDXd<"dxtldpxxd"i~'^:DpddȨDDDdp4D48ddddddddddDDpppd|Ld|pȐD8DtdDdpXpXDdp8Dp8pdppXLDpdddXP,PhD4htDDD4DDDDDDdDp8dddddȐXXXXXJ8J8J8J8pddddppppddpddddzpdddXXhXXXXXdddhdptL8LpLDLpphhp8ZDP8pppddƐXXXpLpLpLphfDtppppppȐhXXXpDppLDd4ddC6CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxHjdDdddddd/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""2"2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""\4  pG;\f5hC:,%rXh*f9 xr G;XXgW!@(#,h@\  P6G;hPhH5!,),5\  P6G;,P\{,W80,%BZW*f9 xr G;X No Item Found Item FoundNo Text Supplied &To Text:footnote refAccog yO'*b X4#Xj\  P6G;ynXP#w  Federal Communications Commission`(#UDA 98788 ă   yxdddy*  Њvf Before the FEDERAL COMMUNICATIONS COMMISSION  yO'a7Washington, D.C. 20554 #Xj\  P6G;ynXP#у  X4In the Matter of hhCq) ` `  hhCq)  X4Federal State Joint BoardhhCq)  X4on Universal Service hhCq)ppCC Docket No. 9645 ` `  hhCq)  X 4ForwardLooking MechanismhhCq)  X 4for High Cost Support forhhCq)ppCC Docket No. 97160  Xr 4NonRural LECs hhCq)  X-'j ORDER Đ\ Adopted: April 23, 1998`(#!Released:  $] April 23 $] , 1998 By the Chief, Common Carrier Bureau:  X' M:I. INTRODUCTION ă  Xu41.` ` In the Universal Service Order,&u {O'ԍ Federal State Joint Board on Universal Service, Report & Order, CC Docket No. 9645, 12 FCC Rcd 8776  {O'(1997), as corrected by Federal State Joint Board on Universal Service, CC Docket 9645, Errata, FCC 97157  {O'(rel. June 4, 1997), appeal pending, Texas Office of Public Utility Counsel v. FCC, No. 9760421 (5th Cir. filed June 25, 1997). the Commission concluded that high cost support for nonrural carriers should be based on forwardlooking economic costs, and adopted criteria for the economic cost models and studies that will be used to calculate these  X24forwardlooking costs.f2 yO'ԍ Universal service support for nonrural carriers will be calculated based on forwardlooking economic  {Oa'costs beginning January 1, 1999. Universal Service Order at paras 224226. Support for rural carriers will continue to be based on existing support levels until a model that accurately predicts rural carriers' forwardlooking economic costs can be developed. In no event will rural carriers receive support based on forward {O!'looking economic costs before January 1, 2001. Universal Service Order at paras. 252256. f The Commission currently is developing a federal mechanism for  X4determining nonrural carriers' forwardlooking cost of providing the supported services.H\j  yO6$'ԍ FederalState Joint Board on Universal Service, Forward LookingMechanism for High Cost Support for  {O$'NonRural LECs, Further Notice of Proposed Rulemaking, CC Docket Nos. 9645, 97160, FCC 97256 (rel.  {O%'July 18, 1997) (Further Notice).H  X4The Commission stated in the Universal Service Order that it intended to complete work on  X4the federal mechanism, including all inputs, by August 1998. The Universal Service Order" 0*o(o(qq " also permitted state regulatory commissions to develop their own statespecific cost studies to determine the forwardlooking cost of providing the supported services within their respective  X4jurisdictions.\" {OK'ԍ Universal Service Order at paras. 247251. \ The Commission concluded in the Universal Service Order that the state cost studies would be subject to public comment and that the Commission would determine  X4whether such cost studies meet the Universal Service Order's criteria before they could be  X4used to calculate federal universal service support.4Z" {O'ԍ Id..4 The Universal Service Order required  X|4state commissions that elect to submit cost studies to do so on or before February 6, 1998.3|" {O 'ԍ Id.3  Xe4In the First Extension Order,1\e~" yO 'ԍ FederalState Joint Board on Universal Service, ForwardLooking Mechanism for High Cost Support for  {O\'NonRural LECs, CC Docket Nos. 9645 and 97160, Order, DA 972538 (rel. Dec. 3, 1998) (First Extension  {O&'Order).1 the Common Carrier Bureau (Bureau) extended until April 24, 1998, the deadline by which states that choose to submit cost studies must file such studies.  X" 42.` ` The Bureau hereby grants a further extension of the deadline until May 26, 1998. State studies must include all input values.  X ' II. POSITIONS OF THE PARTIES ă  X 43.` ` The National Association of Regulatory Utility Commissioners (NARUC) has filed a petition for further extension of the deadline for filing state cost studies, and extension requests or pleadings supporting an extension have been filed by the state commissions of  Xj4Arizona, Maine, Montana, North Carolina, and Oregon.?j" yO'ԍ The petitions were filed February 24, 1998 (NARUC); March 27, 1998 (Arizona); March 2, 1998 (Maine); March 19, 1998 (Montana); March 30, 1998 (North Carolina); and March 16, 1998 (Oregon). All of the states concurred in NARUC's request for an extension of ninety days from the date the Commission selects a complete federal mechanism for determining nonrural carriers' forwardlooking cost to provide the supported services, with the exception of North Carolina, which requested an extension of fortyfive days, until June 8, 1998.? West Virginia filed a letter stating  XS4that it would not be able to complete its cost study before the April 24, 1998 deadline. SR " yOV 'ԍ Letter from the Public Service Commission of West Virginia to Secretary, FCC, dated March 25, 1998.  X<4NARUC requests a general extension for all state commissions until three months after the  X%4Commission has selected both the platform and the inputs for the federal mechanism.= "%" yO#'ԍ NARUC Request for Extension of Time at 6. The platform of a mechanism for determining forwardlooking economic cost is the set of fixed assumptions and algorithms used to determine the configuration of the network. In contrast, the mechanism's input values include the prices of network components, installation,  {O&'maintenance, and other variables that can be modified within the mechanism or its components. See Further"& 0*&&&"  {O'Notice at paras. 1718.= "%Z 0*&&qq " NARUC asserts that state commissions require additional time because of further delays in receiving final versions of the models that are being considered in this proceeding and  X4resulting delays in the release of the Commission's own order selecting a platform for the  X4federal mechanism.c Z" yO'ԍ NARUC Request for Further Extension of Time at 45.c  X44.` ` The state commissions request extensions of the deadline or support NARUC's extension request based on the status of their state proceedings and the amount of work required to complete their cost studies. The state commissions also generally state that  XH4coordination between state and federal universal service efforts would be advanced if the selection of the federal mechanism is announced before the states are required to file their  X 4cost studies.  " {O'ԍ See, e.g., Arizona Comments in Support of NARUC's Extension Request at 2; Oregon Extension Request at 1.  X ' CIII. DISCUSSION ă  X 4  X 45.` ` As a matter of Commission policy, requests for extension of time are not  X 4routinely granted.A D" yO'ԍ 47 C.F.R.  1.46(a).A NARUC and the state commissions have argued convincingly, however, that the April 24, 1998 deadline does not provide states with sufficient time to complete the proceedings necessary, many of which are underway, to develop reasonably accurate cost  Xb4studies. Given the importance and complexity of these proceedings, we conclude that the public interest would be served by extending the deadline for filing state cost studies.  X46.` ` As we found in the First Extension Order, however, the length of the extension should not impede the Commission's ability to implement in a timely manner the revised high  X4cost support mechanisms for nonrural carriers based on forwardlooking costs.#\" {Ov'ԍ In the Universal Service Order, the Commission stated that it would implement the revised high cost  {O@'support mechanisms for nonrural carriers on January 1, 1999. Universal Service Order, 12 FCC Rcd at 8889 para. 203.# After state cost studies have been submitted, a significant amount of work for the Commission and carriers will remain to be completed before the implementation of the new support mechanisms for nonrural carriers. The Commission must provide an opportunity for public comment on the state cost studies. The Commission must then evaluate the cost studies to  X~4determine whether they are consistent with the criteria specified in the Order. Once the mechanism for determining the forwardlooking cost of providing the supported services has"i 0*&&qq" been determined for each state, incumbent local exchange carriers and other carriers must have sufficient time to make any necessary changes to their tariffs. The Commission must then review any changes to incumbent local exchange carriers' interstate access tariffs. Moreover, the Commission has committed to completing a proceeding reconsidering the  X4methodology adopted in the Universal Service Order for nonrural carriers before the new methodology is implemented. The Commission's order selecting the complete federal  Xx4mechanism, including all inputs, is not expected until August 1998.jx" {O'ԍ See Universal Service Order, 12 FCC Rcd at 8910 para. 245.j Therefore, we conclude that we cannot grant NARUC's request to extend the deadline for filing state cost studies to three months after the Commission has selected the complete federal mechanism.  X34  X 47.` ` We find that granting a short additional extension until May 26, 1998, will provide a reasonable opportunity for states that are close to completing their cost studies, and may permit states to make additional improvements to their studies. We believe that this extension will provide state commissions with more time to complete their cost studies while still ensuring that a forwardlooking mechanism for determining high cost support can be  X 4implemented in a timely fashion. Because of the widespread support for the extension, Z" yO'ԍ NARUC's membership includes all U.S. states and territories, and NARUC asserts that its filing was supported by at least 35 jurisdictions. NARUC Request for Further Extension of Time at 23. and because the public interest will best be served by a general extension of the deadline, this extended deadline applies to all state and territorial commissions. We also take this opportunity to clarify that state cost study filings must include a complete mechanism for  XM4determining the forwardlooking cost of providing the supported services in that state.jM" {O'ԍ See Universal Service Order, 12 FCC Rcd at 8911 para. 247.j Thus, states cost study filings that utilize a cost model must include both a platform design selection as well as all input values.  X' !IV. ORDERING CLAUSES ă  X48.` ` Accordingly, IT IS ORDERED, pursuant to the authority contained in section 4(i) of the Communications Act of 1934, as amended, 47 U.S.C. section 154(i), and sections 0.91, 0.291, and 1.46 of the Commission's Rules, 47 C.F.R. sections 0.91, 0.291, and 1.46, that the deadline for states to file cost studies for determining the forwardlooking cost of providing the services supported by federal universal service support mechanism IS EXTENDED to and including May 26, 1998.  X"49.` ` IT IS FURTHER ORDERED, pursuant to the authority contained in section 4(i) of the Communications Act of 1934, as amended, 47 U.S.C. section 154(i), and sections 0.91, 0.291, and 1.46 of the Commission's Rules, 47 C.F.R. sections 0.91, 0.291, and 1.46,"D0*&&qq" that the requests for extension filed by NARUC and the state commissions of Arizona, Maine, Montana, North Carolina, and Oregon ARE GRANTED to the extent indicated herein and otherwise ARE DENIED.  X4 ` `  hhCqvFEDERAL COMMUNICATIONS COMMISSION ` `  hhCqA. Richard Metzger, Jr. ` `  hhCqChief, Common Carrier Bureauv