Cost Filing Criteria
All cost filings in this proceeding, both interim and updated permanent filings, should employ the Total Element Long Run Incremental Costing (TELRIC) methodology and adhere to the Consensus Costing Principles set forth in D.95-12-016. In addition, these filings should follow the cost modeling guidance provided by the Commission to GTEC (now Verizon) in D.96-08-021, in a ruling by ALJ McKenzie in this proceeding dated June 18, 1997, and various other rulings and orders of the Commission related to the TELRIC methodology. Where Verizon or any other party believes that deviations from prior Commission guidance are in order, such deviations should be explained and justified in full.
In addition, I will apply the same criteria to cost filings in this proceeding that were recently specified in Application (A.) 01-02-024 et al. to reexamine UNE prices for Pacific Bell Telephone Company.1 Specifically, any cost models or cost studies filed in this proceeding must allow parties to:
1) Reasonably understand how costs are derived by:
a. Providing access to all interested parties of the model and all underlying data, formulae, computations, software, engineering assumptions, and outputs; and
b. Allowing interested parties to examine and modify the critical assumptions and engineering principles.
2) Generally replicate the cost model or cost study calculations; and
3) Propose changes in inputs and assumptions in order to modify the costs produced.
1 See A.01-02-024/A.02-02-035/A.02-02-031/A.02-02-032/A.02-02-034/A.02-03-002, "Scoping Memo for Consolidated 2001/2002 Unbundled Network Element Reexamination for Pacific Bell Telephone Company," June 12, 2002.
