(a) An electing company may set the price for any nonbasic service at any level above the lesser of the:
(1) service’s long run incremental cost in accordance with the imputation rules prescribed by or under Subchapter D, Chapter 60; or
(2) price for the service in effect on September 1, 1999.
(b) Subject to Section 51.004, an electing company may use pricing flexibility for a nonbasic service. Pricing flexibility includes all pricing arrangements included in the definition of “pricing flexibility” prescribed by Section 51.002 and includes packages that include basic network services.

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