Sec.  51.507   General rate structure standard.

   (a) Element rates shall be structured consistently with the manner in which
   the costs of providing the elements are incurred.

   (b) The costs of dedicated facilities shall be recovered through flat-rated
   charges.

   (c) The costs of shared facilities shall be recovered in a manner that
   efficiently apportions costs among users. Costs of shared facilities may be
   apportioned  either  through usage-sensitive charges or capacity-based
   flat-rated charges, if the state commission finds that such rates reasonably
   reflect the costs imposed by the various users.

   (d) Recurring costs shall be recovered through recurring charges, unless an
   incumbent LEC proves to a state commission that such recurring costs are de
   minimis. Recurring costs shall be considered de minimis when the costs of
   administering the recurring charge would be excessive in relation to the
   amount of the recurring costs.

   (e) State commissions may, where reasonable, require incumbent LECs to
   recover nonrecurring costs through recurring charges over a reasonable
   period of time. Nonrecurring charges shall be allocated efficiently among
   requesting telecommunications carriers, and shall not permit an incumbent
   LEC  to  recover  more than the total forward-looking economic cost of
   providing the applicable element.

   (f) State commissions shall establish different rates for elements in at
   least three defined geographic areas within the state to reflect geographic
   cost differences.

   (1) To establish geographically-deaveraged rates, state commissions may use
   existing density-related zone pricing plans described in  Sec. 69.123 of this
   chapter, or other such cost-related zone plans established pursuant to state
   law.

   (2) In states not using such existing plans, state commissions must create a
   minimum of three cost-related rate zones.

   [ 61 FR 45619 , Aug. 29, 1996, as amended at  64 FR 32207 , June 16, 1999;  64 FR 68637 , Dec. 8, 1999]