[Federal Register Volume 66, Number 45 (Wednesday, March 7, 2001)]
[Proposed Rules]
[Pages 13690-13691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5489]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 43

[CC Docket No. 98-137; FCC 01-68]


1998 Biennial Regulatory Review--Review of Depreciation 
Requirements for Incumbent Local Exchange Carriers

AGENCY: Federal Communications Commission.

ACTION: Proposed rule; denial.

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SUMMARY: In this document the Commission denied US West, Inc. (now 
Qwest) petition for reconsideration of our December 30, 1999 
Depreciation Order. The US West, Inc. petition sought reconsideration 
of: our denial of United States Telephone Association petition for 
forbearance; the methodology for certain equipment life ranges, and the 
accounting treatment in waiver situation. The Commission concluded that 
US West, Inc had not provided any new information or arguments that 
required us to alter our prior rulings.

ADDRESSES: Office of the Secretary, Federal Communications Commission, 
445-12th Street, SW, TW-A325, Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: JoAnn Lucanik, Accounting Safeguards 
Division, Common Carrier Bureau, at (202) 418-0873.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order 
on Reconsideration adopted February 21, 2001, and released February 26, 
2001. The full text of this Commission decision is available for 
inspection and copying during normal business hours in the FCC 
Reference Center (Room CY-A257), 445 12th Street, SW, Washington, DC 
20554. The complete text may also be purchased from the Commission's 
copy contractor, International Transcription Service, Inc., 1231 20th 
Street, Washington, DC 20036, telephone (202) 857-3800.

Summary of Order on Reconsideration

    In this order, we deny a petition for reconsideration filed on May 
10, 2000, by US West, Inc. (now Qwest) of our December 30, 1999 Order 
(Depreciation Order) (which was not published in the Federal Register). 
In the Depreciation Order, which was part of our 1998 Biennial 
Regulatory Review proceeding, we undertook an extensive review of our 
depreciation requirements for price cap incumbent local exchange 
carriers (ILECs). Although we denied a petition filed by the United 
States Telecom Association (USTA) to forbear from imposing depreciation 
requirements on price cap ILECs, we significantly streamlined our 
depreciation requirements, and set out specific conditions under which 
ILECs could seek waiver of these requirements.
    In a subsequent order, released on November 7, 2000, 66 FR 9681 
(February 9, 2001), we reviewed an alternative proposal for relieving 
carriers of our depreciation requirements. We concluded that the 
alternative proposal to permit an above-the-line accounting treatment 
of the financial-to-regulatory book differential in lieu of a below-
the-line accounting treatment lacked the inherent protections provided 
for in the waiver process adopted in the Depreciation

[[Page 13691]]

Order. Thus, we declined to relieve carriers of our depreciation 
requirements in circumstances where they elected above-the-line 
treatment.
    In its petition for reconsideration, Qwest requests (1) that we 
reconsider our denial of USTA's petition for forbearance of our 
depreciation requirements; (2) that if USTA's petition is not granted, 
we reconsider our methodology for establishing service life ranges for 
telecommunications plant equipment; and (3) that for purposes of 
seeking a waiver of the depreciation requirements, we permit an above-
the-line accounting treatment of the differential between regulatory 
and financial book reserve levels.
    After review of the arguments presented on reconsideration, we 
conclude that Qwest has not provided any new information or arguments 
that require us to alter our prior rulings. The precise issues and 
arguments that Qwest raises on reconsideration were thoroughly 
considered and examined in the previous proceeding. Our analysis and 
reasons for our rulings are fully stated in the Depreciation Order, and 
the November 2000 Order further underscores the appropriateness of the 
decision to deny reconsideration.
    Accordingly, pursuant to sections 4, 201-205, 218-220, 303(r), and 
405 of the Communications Act of 1934, as amended, 47 U.S.C. 154, 201-
205, 218-220, 303(r), and 405 of the Communications Act of 1934, as 
amended, and Secs. 1.106 and 1.429 of the Commission's rules, 47 CFR 
1.106, 1.429, that the petition for reconsideration filed May 10, 2000, 
by US West, Inc. (now Qwest) is denied.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 01-5489 Filed 3-6-01; 8:45 am]
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