NAC704.68085. Geographic averaging of rates.

     1. The rates charged for intrastate interexchange toll service by a telecommunication provider must be geographically averaged throughout each LATA, or within such other smaller geographic area as the Commission deems appropriate to balance the interest of all customers and providers.

     2. The rates charged for essential and discretionary services by a small-scale provider of last resort must be geographically averaged throughout the provider’s service territory, or within such other smaller geographic area as the Commission deems appropriate to balance the interests of all customers and providers.

     3. Any person may file an application with the Commission which requests that the rates charged for intrastate interexchange toll service by a small-scale provider of last resort be geographically averaged pursuant to subsection 1 or 2 within a geographic area which is smaller than the LATA in which the service is provided.

     4. The applicant has the burden of demonstrating that the request for the deviation balances the interest of all customers and providers, and will not, if approved, unfairly and unreasonably impede competition. The application must:

     (a) Fully identify and describe the service, including all of the information set forth in subsection 1 of NAC 704.68062;

     (b) Specify the rate for the service and provide all facts necessary to support the appropriateness of the proposed rates, including those facts enumerated in subsection 5; and

     (c) Specify the relevant market area of the service, in terms of the specific geographic boundaries, for the proposed deviation.

     5. To determine whether an application filed pursuant to subsection 3 should be approved, the Commission will consider, in balancing the interests of all customers and providers:

     (a) The cost of providing the service in the proposed smaller geographic area;

     (b) The extent to which actual or potential competition, or both actual and potential competition, exists for the service in the proposed smaller geographic area, including the price charged by actual competitors or the price which may be charged by a potential competitor for the service; and

     (c) Any other factors deemed to be relevant by the Commission.

     6. The provisions of this section do not apply to a competitive supplier.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008; R040-08, 9-18-2008)