The Federal Communications Commission has granted a FairPoint Communications, Inc. petition asking it to find that the National Exchange Carrier Association (NECA) incorrectly deducted Local Switching Support (LSS) as double recovery in calculating the amount that FairPoint’s rate-of-return affiliates may obtain from the transitional recovery mechanism under the Commission’s rules. The Commission found that Connect America Fund (CAF) Phase II support generally does not include duplicative LSS recovery and, therefore, granted FairPoint’s petition. It also waived, on its own motion, an additional imputation requirement of the Commission’s rules to the extent necessary for FairPoint and other similarly situated carriers to obtain the funds they should have received from the recovery mechanism since January 1, 2015.
