§269-39 - Cross-subsidies.
[§269-39] Cross-subsidies. (a) The commission shall ensure that noncompetitive services shall notcross-subsidize competitive services. Cross-subsidization shall be deemed tohave occurred:
(1) If any competitive service is priced below thetotal service long-run incremental cost of providing the service as determinedby the commission in subsection (b); or
(2) If competitive services, taken as a whole, failto cover their direct and allocated joint and common costs as determined by thecommission.
(b) The commission shall determine themethodology and frequency with which providers calculate total service long-runincremental cost and fully allocated joint and common costs. The total servicelong-run incremental cost of a service shall include an imputation of an amountequal to the contribution that the telecommunications carrier receives fromnoncompetitive inputs used by alternative providers in providing the same orequivalent service. [L 1995, c 225, pt of §2]