D0203023 Opinion on the Performance Incentives Plan for Pacific Bell Telephone Company

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APPENDIX TABLE OF CONTENTS

Appendix A: List of Filings Containing Parties' Final Proposed Incentive Plans, Plan Data Runs, and Plan Comments 1 1

Final Proposed Plans 1 1

Appendix B: Payment Amounts Generated by the Proposed Plans. 1 1

Appendix C: ARMIS 43-01 Cost and Revenue Table 1 1

Appendix D: Verizon's Illustrations 1 1

Appendix E: Payment Rate Guide 1 1

Appendix F: Individual Performance Result Payment Rate Examples 1 1

Appendix G: Payments Generated by Estimated Failure Rates 0 0

Appendix H: Failure Rates and Payments in Texas and New York 1 1

Appendix I: Workpaper #13, April 2, 2001, R.97-10-016/I.97-10-017. 1 1

Appendix J: California Performance Incentives Plan 1 1

I. Parity measures 2 2

A. Statistical Tests 2 2

1. Average-based Parity Measures 2 2

2. Proportion Parity Measures 3 3

3. Rate-based Parity Measures 3 3

4. Indexed-based Parity Measures 3 3

B. Critical Alpha Level for Parity Tests 4 4

C. Sample Sizes and Aggregation Rules 6 6

D. Measures without Retail Analogues. 6 6

II. Benchmark Measures 6 6

Mathcad worksheet to calculate small sample tables 11 11

Appendix K: List of Appearances 1 1

Appendix A: List of Filings Containing Parties' Final Proposed Incentive Plans, Plan Data Runs, and Plan Comments