1. (a) The EAS rate shall include the ILEC’s revenue that is replaced by EAS, which is lost toll revenue.
2. (b) The EAS rate may include other just and reasonable costs related to the new EAS route, such as additional facilities and changes in access costs and revenues.

3. (c)

   1. (1) Generally, the EAS rate shall not include any one-time expenses such as programming and billing expenses.
   2. (2) However, an ILEC may request recovery of such one-time expenses through the EAS rate.
   3. (3) If the Arkansas Public Service Commission determines such costs to be just and reasonable costs and appropriate for recovery through the EAS rate, then these costs shall be amortized over the expected life of the proposed EAS route.

4. (d)

   1. (1) The ILEC shall use at least three (3) months and no more than twelve (12) months of data in developing the rate.
   2. (2) The data shall be from the billing months immediately preceding the petition filing date.

5. (e)

   1. (1) The ILEC shall use the most recent month’s ending access line count in the rate development.
   2. (2) All access lines subject to the EAS rate shall be included in the access line total.
6. (f) ILEC official lines shall be excluded from both the revenue and access line numbers.
7. (g) The ILEC may develop rates that are different for residential and business customers.

8. (h)

   1. (1) Within seventy-five (75) days of the filing of a valid petition, the ILEC shall file with the Arkansas Public Service Commission sufficient information to verify the:

      1. (A) Lost toll revenue; and
      2. (B) Calculation of the EAS rate or rates.
   2. (2) The ILEC shall also include a proposed ballot and proposed implementation date with its filing.

9. (i)

   1. (1) The ILEC shall make all supporting documentation underlying the development of the EAS rate available to the General Staff.
   2. (2) This information shall be subject to review, analysis, and audit to confirm compliance with Arkansas Code § 23-17-414(b)(1)(B).

Codification Notes: This section was promulgated as Rule 12.02 of the Telecommunications Providers Rules prior to codification in the Code of Arkansas Rules.