(a) An electing company, after the 42nd month after the date the company elects incentive regulation under this chapter, may file an application for a commission review of the company’s need for changes in the rates of its services if the company:
(1) has fewer than five million access lines in this state; and
(2) is complying with:
(A) the company’s infrastructure commitment;
(B) each requirement relating to quality of service; and
(C) each commission rule adopted under Chapter 60.
(b) The company’s application may request that the commission adjust rates, implement new pricing plans, restructure rates, or rebalance revenues between services to recognize changed market conditions and the effects of competitive entry.

(c) The commission may use an index and a productivity offset in determining the requested changes.
(d) The commission may not:
(1) order an increase in the rate for residential local exchange telephone service that would cause the rate to increase by more than the United States Consumer Price Index in any 12-month period; or
(2) set the monthly rate for residential local exchange telephone service in an amount that exceeds the nationwide average rates for similar local exchange telephone services.