Ill. Admin. Code tit. 83, § 791.60 - General Cost Study Components
a) Service
description. Each cost study shall include a definition of the service being
studied. This definition shall be in terms of technical characteristics,
functionality, application, targeted market, and availability. The elements of the
service shall also be defined.
b) Demand
Information. The carrier shall provide the demand figures and/or forecasts used in
the LRSIC computations and an explanation detailing the explicit and implicit
assumptions and methods used to derive the figures and/or forecasts. Demand
forecasts for new services shall reflect total demand for the service, averaged over
the projected revenue producing life of the service.
c) Revenue life. Each cost study shall identify
and provide a basis for the projected revenue producing life of the service or group
of services.
d) Economic life. Each cost
study shall identify and provide a basis for the projected economic life of the
equipment involved in providing the service or group of services.
e) Input prices. Each cost study shall reflect
input prices (e.g., the prices for materials, labor, and capital) that the carrier
is actually expected to face. The carrier shall provide the underlying bases for
projected changes in input price levels, using, wherever possible, projections based
on market expectations and rates set in labor contracts. Where appropriate, costs
shall be based on prevailing vendor prices or vendor prices under consideration that
reflect volume discounts or term discounts off listed input prices. These discounts
shall be reflected in the cost study.
f)
Factors. Whenever any factors are used to estimate costs, such as maintenance or
labor costs, the basis for those factors shall be described in an annual filing with
the Manager of the Telecommunications Division of the Illinois Commerce Commission.
Factors shall be based upon historical costs only to the extent that it can be
demonstrated that those historical costs are relevant to the study of
forward-looking costs. Any deviations in individual cost studies from factors filed
on an annual basis shall be identified and explained in each cost study.
g) Volume-insensitive costs. To the fullest extent
possible, volume-insensitive costs shall be directly attributed to particular
services or, where shared by a group of services, to that group of
services.
h) Volume-sensitive costs.
Volume-sensitive costs shall be directly attributed to the service that causes the
costs.
i) The cost study shall include
all relevant service-specific start-up costs, including installation
costs.
Notes
Amended at 27 Ill. Reg. 4535, effective April 1, 2003
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