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Wednesday, August 4, 2004

 
Talk About Regulatory Lag
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Whew! Did you see the August 2 TR Daily story headlined: "FCC Orders Price Cap LECs to Refile '93, '94 Access Tariffs"? [Subscription required]. In what TR Daily politely called a "multiyear investigation", the agency just determined that the price cap LECs failed to include an appropriate formula in their price cap indices in their 1993 and 1994 access tariff filings. So the agency ordered the LECs to recalculate the 1992 and 1993 earnings and to refile after making the necessary adjustment.

Then the agency will embark on the next phase of the tariff investigation to determine whether, despite the use of the wrong formula, the LECs nevertheless had enough "headroom" [Don't ask!!!] so that, in any event, refunds are not required. (Okay, you asked. "Headroom" has to do with the extent to which the LECs' rates were below the allowable rates under the price cap index.)

What were you doing during 1992 and 1993, daddy? You might be entitled to a refund. Or maybe not.

As my mother likes to say: "You should live so long!"

posted by Randolph May @ 5:46 PM | General

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