[Federal Register Volume 62, Number 142 (Thursday, July 24, 1997)]
[Rules and Regulations]
[Pages 39776-39779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19534]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 32, 43, and 64
[CC Docket No. 96-193; FCC 97-145]
Reform of Filing Requirements and Carrier Classifications;
Anchorage Telephone Utility, Petition for Withdrawal of Cost Allocation
Manual
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this Report and Order (Order), the Commission revised the
rules governing filing requirements for cost allocation manuals (CAMs)
and Automated Reporting Management Information System (ARMIS) reports
so that these rules are in accord with the 1996 Act. Specifically, the
Order: provides for a uniform filing date of April 1 for all ARMIS
reports; reduces the 60-day notice period for a carrier to make changes
to its CAM to 15 days; makes permanent our interim rules for measuring
inflation, used to adjust the threshold revenue values in our rules;
permits carriers to file the interstate carrier quarterly report on an
annual basis; and eliminates the supplemental reporting requirement.
This Order also addresses a Motion for Reconsideration filed by
Anchorage Telephone Utility (ATU). On June 22, 1995, ATU filed a
petition seeking a declaratory ruling that it is not required to file
ARMIS reports or, in the alternative, a waiver of these filing
requirements or rulemaking to amend the Commission's filing
requirements. In its Petition for Reconsideration, ATU argues that the
Commission should require only incumbent local exchange carriers with
more than 2% of the nation's access lines to comply with the CAM and
ARMIS filing requirements. In this Order, the Commission denies ATU's
Petition for Reconsideration and retains the $107 million annual
revenue threshold (adjusted annually for inflation, and since raised to
$109 million) indicating which incumbent local exchange carriers must
comply with the Commission's CAM and ARMIS reporting and filing
requirements. However, because ATU sufficiently demonstrated that its
annual revenues may soon decrease to a level
[[Page 39777]]
below the filing and reporting threshold, the Commission granted ATU a
limited two-year waiver of the ARMIS reporting requirements.
EFFECTIVE DATE: August 25, 1997.
FOR FURTHER INFORMATION CONTACT: Warren Firschein, Accounting and
Audits Division, Common Carrier Bureau, (202) 418-0844.
SUPPLEMENTARY INFORMATION: On September 12, 1996, the Commission
released an Order and Notice of Proposed Rulemaking (the Order and
NPRM) (61 FR 50266, September 25, 1996) modifying the rules as directed
by the 1996 Act to require only annual ARMIS reports and annual cost
allocation manual revisions. Furthermore, because the 1996 Act did not
specify how the Commission should measure inflation in adjusting annual
revenue thresholds used to define (or identify) those incumbent local
exchange carriers that must file these annual reports, the Commission
adopted interim rules that adjust those thresholds for inflation using
a generally-available inflation index. The Order and NPRM sought
comment on additional modifications to the rules, such as whether the
Commission should modify or eliminate the 60-day advance notice
requirement for cost allocation manual revisions as well as which
permanent inflation measure the Commission should incorporate into the
rules pertaining to carrier classification and reporting requirements.
Paperwork Reduction Analysis
OMB Control No.: 3060-0470.
Expiration Date: 08/31/98.
Title: Computer III Remand Proceeding: Bell Operating Company
Safeguards and Tier 1 Local Exchange Company Safeguards and
Implementation of further Cost Allocation Uniformity.
Form No.: N/A.
Estimated Annual Burden: 18 respondents; 300 hours per response
(avg.) x 2 responses annually; 10,800 total annual burden hours.
Estimated Annual Reporting and Recordkeeping Cost Burden: $0.
Frequency of Response: On occasion.
Needs and Uses: In the Report and Order, the Commission revised
these rules to: (1) Provide for a uniform filing date of April 1 for
all ARMIS reports; (2) reduce the 60-day notice period for a carrier to
make changes to its CAM to 15 days; (3) make permanent the Commission's
interim rules for measuring inflation, used to adjust the threshold
revenue values in part 43 and Secs. 32.11 and 64.904 of the rules; (4)
permit carriers to file Sec. 43.22 interstate carrier quarterly report
on an annual basis; and (5) eliminate the Sec. 43.21(b) supplemental
reporting requirement. The cost allocation manual is reviewed by the
Commission to ensure that all costs are properly classified between
regulated and nonregulated activities. The 15-day notice requirement
provides the Commission with sufficient time to determine whether
further information is required to facilitate its review process and,
if necessary, to issue a temporary stay until the carrier submits
additional information concerning proposed changes.
Public reporting burden for the collection of information is as
noted above. Send comments regarding the burden estimate or any other
aspect of the collection of information, including suggestions for
reducing the burden to Performance Evaluation and Records Management,
Washington, DC 20554. An agency may not conduct or sponsor and a person
is not required to respond to a collection of information unless it
displays a currently valid control number.
Regulatory Flexibility Analysis: We have determined that section
605(b) of the Regulatory Flexibility Act of 1980, 5 U.S.C. 605(b), does
not apply to these rules because they will not have a significant
economic impact on the carriers that must comply with our filing and
reporting requirements. This Order adjusts our filing and reporting
threshold for inflation and allows carriers to file ARMIS reports on an
annual basis. As such, it prevents additional carriers from becoming
subject to these filing and reporting requirements solely due to the
cumulative effect of inflationary pressure. It also reduces the
regulatory burden on those carriers that must comply with our ARMIS
filing requirements by allowing these reports to be filed only once per
year. Accordingly, we certify that the rules adopted or modified in
this Order will not have a significant economic impact on a significant
number of small entities.
Ordering Clause
Accordingly, it is ordered that, pursuant to sections 402(b)(2)(B)
and 402(c) of the Telecommunications Act of 1996, Pub. L. 104-104, and
sections 1, 4, 201-205, 215, 218, 220 of the Communications Act of
1934, as amended, 47 U.S.C. 151(a), 154, 201-205, 215, 218 and 220, and
section 553(b)(B) of the Administrative Procedure Act, 5 U.S.C.
553(b)(B), parts 32, 43, and 64 of the Commission's rules, 47 CFR parts
32, 43, and 64 are amended.
It is further ordered that, pursuant to sections 402(b)(2)(B) of
the Telecommunications Act of 1996, Public Law 104-104, and sections 1,
4, 201-205, 215, 218, 220 of the Communications Act of 1934, as
amended, 47 U.S.C. 151(a), 154, 201-205, 215, 218 and 220, the Petition
for Reconsideration by Anchorage Telephone Utility is denied.
List of Subjects
47 CFR Part 32
Communications common carriers, Reporting and recordkeeping
requirements, Telephone, Uniform System of Accounts.
47 CFR Part 43
Communications common carriers, Radio, Reporting and recordkeeping
requirements, Telegraph, Telephone.
47 CFR Part 64
Civil defense, Claims, Communications common carriers, Computer
technology, Credit, Foreign relations, Individuals with disabilities,
Political candidates, Radio, Reporting and recordkeeping requirements,
Telegraph, Telephone.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
Rules Changes
Parts 32, 43 and 64 of title 47 of the Code of Federal Regulations
are amended to read as follows:
PART 32--UNIFORM SYSTEM OF ACCOUNTS FOR TELECOMMUNICATIONS
COMPANIES
1. The authority citation for part 32 is revised to read as
follows:
Authority: 47 U.S.C. 154(i), 154(j) and 220; Telecommunications
Act of 1996, Pub. L. 104-104, sec. 402(c), 110 Stat. 56 (1996) as
amended unless otherwise noted.
2. Section 32.11 is amended by revising paragraphs (a)(1) and
(a)(2) to read as follows:
Sec. 32.11 Classification of companies.
(a) * * *
(1) Class A. Companies having annual revenues from regulated
telecommunications operations that are equal to or above the indexed
revenue threshold.
(2) Class B. Companies having annual revenues from regulated
telecommunications operations that are less than the indexed revenue
threshold.
* * * * *
3. Section 32.9000 is amended by adding the definition of ``indexed
[[Page 39778]]
revenue threshold for a given year'' in alphabetical order to read as
follows:
Sec. 32.9000 Glossary of terms.
* * * * *
Indexed revenue threshold for a given year means $100 million,
adjusted for inflation, as measured by the Department of Commerce Gross
Domestic Product Chain-type Price Index (``GDP-CPI''), for the period
from October 19, 1992 to the given year. The indexed revenue threshold
for a given year shall be determined by multiplying $100 million by the
ratio of the annual value of the GDP-CPI for the given year to the
estimated seasonally adjusted GDP-CPI on October 19, 1992. The indexed
revenue threshold shall be rounded to the nearest $1 million. The
seasonally adjusted GDP-CPI on October 19, 1992 is determined to be
100.69.
* * * * *
PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN
AFFILIATES
1. The authority citation for part 43 is revised to read as
follows:
Authority: 47 U.S.C. 154; Telecommunications Act of 1996, Pub.
L. 104-104, secs. 402 (b)(2)(B), (c), 110 Stat. 56 (1996) as amended
unless otherwise noted. 47 U.S.C. 211, 219, 220 as amended.
2. Section 43.01 is amended by revising paragraph (b) and adding
new paragraph (c) to read as follows:
Sec. 43.01 Applicability.
* * * * *
(b) Except as provided in paragraph (c) of this section, carriers
becoming subject to the provisions of the several sections of this part
for the first time, shall, within thirty (30) days of becoming subject,
file the required data as set forth in the various sections of the
part.
(c) Carriers becoming subject to the provisions of Secs. 43.21 and
43.43 for the first time, because their annual operating revenues equal
or exceed the indexed revenue threshold for a given year, shall begin
collecting data pursuant to such provisions in the calendar year
following the publication of that indexed revenue threshold in the
Federal Register. With respect to such initial filing of reports by any
carrier, pursuant to the provisions of Sec. 43.21 (d), (e), (f), (g),
(h), (i), (j), and (k), the carrier is to begin filing data for the
calendar year following the publication of that indexed revenue
threshold in the Federal Register by April 1 of the second calendar
year following publication of that indexed revenue threshold in the
Federal Register.
3. Section 43.21 is amended by revising the first two sentences of
paragraph (a), removing paragraph (b), redesignating paragraphs (c)
through (g) as paragraphs (b) through (f), revising the newly
redesignated paragraphs (b), and (c), the introductory text of (e), and
paragraph (f), and adding new paragraphs (g), (h), (i), (j), and (k) to
read as follows:
Sec. 43.21 Annual reports of carriers and certain affiliates.
(a) Communication common carriers having annual operating revenues
in excess of the indexed revenue threshold, as defined in Sec. 32.9000,
and certain companies (as indicated in paragraph (b) of this section)
directly or indirectly controlling such carriers shall file with the
Commission annual reports or an annual letter as provided in this
section. Except as provided in paragraph (b) of this section, each
annual report required by this section shall be filed no later than
April 1 of each year, covering the preceding calendar year. * * *
(b) Each company, not itself a communication common carrier, that
directly or indirectly controls any communication common carrier that
has annual operating revenues equal to or above the indexed revenue
threshold, as defined in Sec. 32.9000, shall file annually with the
Commission, not later than the date prescribed by the Securities and
Exchange Commission for its purposes, two complete copies of any annual
report Forms 10-K (or any superseding form) filed with that Commission.
(c) Each miscellaneous common carrier (as defined by Sec. 21.2 of
this chapter) with operating revenues for a calendar year in excess of
the indexed revenue threshold, as defined in Sec. 32.9000, shall file
with the Common Carrier Bureau Chief a letter showing its operating
revenues for that year and the value of its total communications plant
at the end of that year. This letter must be filed no later than April
1 of the following year. Those miscellaneous common carriers with
annual operating revenues that equal or surpass the indexed revenue
threshold for the first time may file the letter up to one month after
publication of the adjusted revenue threshold in the Federal Register,
but in no event shall such carriers be required to file the letter
prior to April 1.
* * * * *
(e) Each local exchange carrier with annual operating revenues
equal to or above the indexed revenue threshold shall file, no later
than April 1 of each year, reports showing:
* * * * *
(f) Each local exchange carrier with operating revenues for the
preceding year that equal or exceed the indexed revenue threshold shall
file, no later than April 1 of each year, a report showing for the
previous calendar year its revenues, expenses, taxes, plant in service,
other investment and depreciation reserves, and such other data as are
required by the Commission, on computer media prescribed by the
Commission. The total operating results shall be allocated between
regulated and nonregulated operations, and the regulated data shall be
further divided into the following categories: State and interstate,
and the interstate will be further divided into common line, traffic
sensitive access, special access and nonaccess.
(g) Each local exchange carrier for whom price cap regulation is
mandatory and every local exchange carrier that elects to be covered by
the price cap rules shall file, by April 1 of each year, a report
designed to capture trends in service quality under price cap
regulation. The report shall contain data relative to network measures
of service quality, as defined by the Common Carrier Bureau, from the
previous calendar year on a study area basis.
(h) Each local exchange carrier for whom price cap regulation is
mandatory shall file, by April 1 of each year, a report designed to
capture trends in service quality under price cap regulation. The
report shall contain data relative to customer measures of service
quality, as defined by the Common Carrier Bureau, from the previous
calendar year on a study area basis.
(i) Each local exchange carrier for whom price cap regulation is
mandatory shall file, by April 1 of each year, a report containing data
from the previous calendar year on a study area basis that are designed
to capture trends in telephone industry infrastructure development
under price cap regulation.
(j) Each local exchange carrier with annual operating revenues that
equal or exceed the indexed revenue threshold shall file, no later than
April 1 of each year, a report containing data from the previous
calendar year on an operating company basis. Such report shall contain
statistical data designed to monitor network growth, usage, and
reliability.
(k) Each designated interstate carrier with operating revenues for
the preceding year that equal or exceed the indexed revenue threshold
shall file, no
[[Page 39779]]
later than April 1 of each year, a report showing for the previous
calendar year its revenues, expenses, taxes, plant in service, other
investment and depreciation reserves, and such other data as are
required by the Commission, on computer media prescribed by the
Commission. The total operating results shall be allocated between
regulated and nonregulated operations, and the regulated data shall be
further divided into the following categories: State and interstate,
and the interstate will be further divided into common line, traffic
sensitive access, special access, and nonaccess.
Sec. 43.22 [Removed]
4. Section 43.22 is removed.
5. Paragraph (a) of Sec. 43.43 is revised to read as follows:
Sec. 43.43 Reports of proposed changes in depreciation rates.
(a) Each communication common carrier with annual operating
revenues that equal or exceed the indexed revenue threshold, as defined
in Sec. 32.9000, and that has been found by this Commission to be a
dominant carrier with respect to any communications service shall,
before making any change in the depreciation rates applicable to its
operated plant, file with the Commission a report furnishing the data
described in the subsequent paragraphs of this section, and also comply
with the other requirements thereof.
* * * * *
PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS
1. The authority citation for part 64 is revised to read as
follows:
Authority: 47 U.S.C. 154; Telecommunications Act of 1996, Pub.
L. 104-104, secs. 402 (b)(2)(B), (c), 110 Stat. 56 (1996), as
amended unless otherwise noted. 47 U.S.C. 201, 218, 226, 228, as
amended unless otherwise noted.
2. Section 64.903 is amended by revising the introductory text of
paragraph (a) and paragraph (b) to read as follows:
Sec. 64.903 Cost allocation manuals.
(a) Each local exchange carrier with annual operating revenues that
equal or exceed the indexed revenue threshold, as defined in
Sec. 32.9000 of this chapter, shall file with the Commission within 90
days after the publication of that threshold in the Federal Register, a
manual containing the following information regarding its allocation of
costs between regulated and nonregulated activities:
* * * * *
(b) Each carrier shall ensure that the information contained in its
cost allocation manual is accurate. Carriers must update their cost
allocation manuals at least annually, except that changes to the cost
apportionment table and to the description of time reporting procedures
must be filed at least 15 days before the carrier plans to implement
the changes. Annual cost allocation manual updates shall be filed on or
before the last working day of each calendar year. Proposed changes in
the description of time reporting procedures, the statement concerning
affiliate transactions, and the cost apportionment table must be
accompanied by a statement quantifying the impact of each change on
regulated operations. Changes in the description of time reporting
procedures and the statement concerning affiliate transactions must be
quantified in $100,000 increments at the account level. Changes in cost
apportionment tables must be quantified in $100,000 increments at the
cost pool level. The Chief, Common Carrier Bureau may suspend any such
changes for a period not to exceed 180 days, and may thereafter allow
the change to become effective or prescribe a different procedure.
* * * * *
3. Paragraph (a) of Sec. 64.904 is revised to read as follows:
Sec. 64.904 Independent Audits.
(a) Each local exchange carrier required to file a cost allocation
manual, by virtue of having annual operating revenues that equal or
exceed the indexed revenue threshold for a given year or by order of
the Commission, shall have an audit performed by an independent auditor
on an annual basis, with the initial audit performed in the calendar
year after the carrier is first required to file a cost allocation
manual. The audit shall provide a positive opinion on whether the
applicable data shown in the carrier's annual report required by
Sec. 43.21(e)(2) of this chapter present fairly, in all material
respects, the information of the carrier required to be set forth
therein in accordance with the carrier's cost allocation manual, the
Commission's Joint Cost Orders issued in conjunction with CC Docket No.
86-111 and the Commission's rules and regulations including Secs. 32.23
and 32.27 of this chapter, 64.901, and 64.903 in force as of the date
of the auditor's report. The audit shall be conducted in accordance
with generally accepted auditing standards, except as otherwise
directed by the Chief, Common Carrier Bureau.
* * * * *
[FR Doc. 97-19534 Filed 7-23-97; 8:45 am]
BILLING CODE 6712-01-P