§269-39 - Cross-subsidies. - Hawaii Statutes

     [§269-39]  Cross-subsidies.  (a)  The commission shall ensure that noncompetitive services shall not cross-subsidize competitive services.  Cross-subsidization shall be deemed to have occurred:

     (1)  If any competitive service is priced below the total service long-run incremental cost of providing the service as determined by the commission in subsection (b); or

     (2)  If competitive services, taken as a whole, fail to cover their direct and allocated joint and common costs as determined by the commission.

     (b)  The commission shall determine the methodology and frequency with which providers calculate total service long-run incremental cost and fully allocated joint and common costs.  The total service long-run incremental cost of a service shall include an imputation of an amount equal to the contribution that the telecommunications carrier receives from noncompetitive inputs used by alternative providers in providing the same or equivalent service. [L 1995, c 225, pt of §2]