[Federal Register Volume 69, Number 52 (Wednesday, March 17, 2004)]
[Rules and Regulations]
[Pages 12548-12553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5015]



[[Page 12548]]

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 36

[CC Docket No. 80-286; FCC 04-11]


Jurisdictional Separations Reform and Referral to the Federal-
State Joint Board

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: In this document, the Commission adopts modifications to the 
Commission's Part 36 Jurisdictional Separations Rules to conform those 
rules to revisions to the Part 32 Uniform System of Accounts adopted in 
the Commission's 2000 Biennial Regulatory Review. The Part 36 
modifications the Commission adopts will not have any effect on the 
assignment of costs and revenues to the state and interstate, but 
rather are merely ministerial in nature.

DATES: Effective April 16, 2004.

FOR FURTHER INFORMATION CONTACT: Gary Seigel, Wireline Competition 
Bureau, Telecommunications Access Policy Division, (202) 418-7400.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order in CC Docket No. 80-286; FCC 04-11, released on January 16, 
2004. The full text of this document is available for public inspection 
during regular business hours in the FCC Reference Center, Room CY-
A257, 445 Twelfth Street, SW., Washington, DC 20554.

I. Introduction

    1. In this Report and Order, we adopt modifications to the 
Commission's Part 36 Jurisdictional Separations Rules to conform those 
rules to revisions to the Part 32 Uniform System of Accounts adopted in 
the Commission's 2000 Biennial Regulatory Review. The part 36 
modifications we adopt will not have any effect on the assignment of 
costs and revenues to the state and interstate, but rather are merely 
ministerial in nature.

II. Discussion

    2. We conclude that it is necessary to adopt modifications to the 
Commission's part 36 rules consistent with the changes made to the part 
32 rules in the Phase 2 Order, 67 FR 5669, February 6, 2002. With 
regard to the elimination of certain part 32 accounts, we find that 
modifying the part 36 rules to reflect the elimination of such accounts 
ensures that the part 32 references contained in part 36 are accurate. 
Because the costs recorded in the newly created subaccounts continue to 
be jurisdictionally separated in the part 36 rules at the higher 
account level, we find that modifications to the part 36 rules are not 
necessary in connection with these new subaccounts. We therefore modify 
the Commission's part 36 rules as set forth in Appendix C to reflect 
the revised part 32 accounting rules as adopted in the Phase 2 Order.
    3. We disagree with those commenters who claim that the 
modifications to part 36 we adopt in this order should have been 
referred to the Joint Board. As an initial matter, we note that, 
although the Commission specifically invited comment from the Joint 
Board in order to identify any substantive impact on part 36, the Joint 
Board did not file comments. Moreover, contrary to the claims by NARUC 
and the state of Oregon, the part 32 changes do not require either 
reinitialization of the frozen category percentages or the 
identification of new jurisdictional allocators for the newly created 
subaccounts. The changes we adopt here are purely ministerial in nature 
and will not have any effect on jurisdictional cost allocations. For 
example, Sec.  36.352 of the Commission's rules provides that Class A 
summary Account 6510 (Other Property Plant and Equipment Expenses) 
shall be separated based on the separation of Account 2001 
(Telecommunications Plant in Service). Because the Phase 2 Order 
eliminated Class A summary Account 6510, Sec.  36.352 is revised to 
direct Class A carriers to perform jurisdictional separations for 
detailed Accounts 6511 and 6512, rather than the summary Account 6510. 
Account 6510 was a summary of Accounts 6511 and 6512. Accounts 6511 and 
6512, however, will continue to be separated based on Account 2001 
(Telecommunications Plant in Service) as was Account 6510. The basis 
for conducting separations and the allocation between the jurisdictions 
remains the same. Similarly, as noted with regard to subaccounts, no 
part 36 changes are needed because the existing part 36 rules separate 
costs at the account level, not the subaccount level. We therefore 
conclude that referral to the Federal-State Joint Board on Separations 
was not necessary in this instance.
    4. Finally, we take this opportunity to correct certain 
typographical errors in part 36 of our rules. We change the reference 
at the end of Sec.  36.126(e)(2) from Sec.  36.156 to Sec.  36.155 and 
remove two references to ``@@Q02'' from Sec.  36.321(a). We also modify 
Sec. Sec.  36.631(a), (c) and (d) to correct typographical errors in 
the dates that these provisions became applicable.

III. Procedural Issues

A. Paperwork Reduction Act Analysis

    5. The decision herein has been analyzed with respect to the 
Paperwork Reduction Act of 1995, Public Law 104-13. This order merely 
modifies account references in part 36 to conform to the part 32 
revisions adopted in the Phase 2 Order to ensure that all account 
references in part 36 are consistent with the Uniform System of 
Accounts. We find, therefore, that the modifications to part 36 adopted 
in this order do not impose new or modified recordkeeping requirements 
or burdens on the public.

B. Final Regulatory Flexibility Certification

    6. The Regulatory Flexibility Act of 1980, as amended (RFA), 
requires that a regulatory flexibility analysis be prepared for notice-
and-comment rule making proceedings, unless the agency certifies that 
``the rule will not, if promulgated, have a significant economic impact 
on a substantial number of small entities.'' The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A ``small business concern'' is one which: (1) Is independently 
owned and operated; (2) is not dominant in its field of operation; and 
(3) satisfies any additional criteria established by the Small Business 
Administration (SBA).
    7. In this Order, we adopt modifications to Part 36 Jurisdictional 
Separations Rules to conform those rules to the revisions to the Part 
32 Uniform System of Accounts adopted in our 2000 Biennial Regulatory 
Review. As indicated in our Initial Regulatory Analysis, our 
modifications to part 36 are due to the consolidation of several 
accounts that are also used in part 36. The alternative to not making 
these modifications would be that part 36 would reference part 32 
accounts that are eliminated effective January 1, 2003. The 
modifications of part 36 to conform to the revised part 32 are 
necessary to eliminate the potential for confusion that may occur as a 
result of inconsistent account references. The conforming amendments to 
the Part 36 jurisdictional rules are a result of the consolidation of 
Part 32 accounts.
    8. The modifications we adopt are ministerial in nature and merely

[[Page 12549]]

conform Part 36 account references to the Part 32 Uniform System of 
Accounts. These ministerial modifications do not have a significant 
economic effect on any entities and only clarify existing Commission 
rules. Therefore, we certify that the requirements of this Report and 
Order will not have a significant economic impact on a substantial 
number of small entities.
    9. The Commission will send a copy of this Report and Order, 
including a copy of this Final Regulatory Flexibility Certification, in 
a report to Congress pursuant to the Congressional Review Act. In 
addition, the Report and Order and this final certification will be 
sent to the Chief Counsel for Advocacy of the SBA and will be published 
in the Federal Register.

IV. Ordering Clauses

    10. Pursuant to sections 1, 4, 201-205, 215, and 218-220 of the 
Communications Act of 1934, as amended, 47 CFR part 36, is amended as 
described.
    11. Pursuant to 5 U.S.C. 553(d) and Sec.  1.427(a) of the 
Commission's rules, Part 36 of the Commission's rules, is amended as 
set forth effective April 16, 2004. We will, however, permit carriers 
to implement Part 36 changes as of January 1, 2003.
    12. The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, shall send a copy of this Report and 
Order, including the Final Regulatory Flexibility Certification, to the 
Chief Counsel for Advocacy of the Small Business Administration.

List of Subjects in 47 CFR Part 36

    Jurisdictional separations, Reporting and recordkeeping 
requirements, Telecommunications, Telephone.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules

0
For the reasons discussed in the preamble, the Federal Communications 
Commission amends 47 CFR part 36 as follows:

PART 36--JURISDICTIONAL SEPARATIONS PROCEDURES; STANDARD PROCEDURES 
FOR SEPARATING TELECOMMUNICATIONS PROPERTY COSTS, REVENUES, 
EXPENSES, TAXES AND RESERVES FOR TELECOMMUNICATIONS COMPANIES

0
1. The authority citation for part 36 continues to read as follows:

    Authority: 47 U.S.C. Secs. 151, 154(i), and (j), 205, 221(c), 
254, 403 and 410.

0
2. Amend Sec.  36.112 by revising paragraph (a) to read as follows:


Sec.  36.112  Apportionment procedures.

    (a) The costs of the general support facilities of Class A 
Companies (which are defined in part 32 of the Commission's Rules) are 
apportioned among the operations on the basis of the separation of the 
costs of the combined Big Three Expenses which include the following 
accounts:

Plant Specific Expenses

Central Office Switching Expenses--Accounts 6211 and 6212
Operators Systems Expenses--Account 6220
Central Office Transmission Expenses--Accounts 6231 and 6232
Information Origination/Termination Expenses--Accounts 6311, 6341, 
6351, and 6362
Cable and Wire Facilities Expenses-- Accounts 6411, 6421, 6422, 6423, 
6424, 6426, 6431, and 6441

Plant Non-Specific Expenses

Network Operations Expenses--Accounts 6531, 6532, 6533, 6534, and 6535

Customer Operations Expenses

Marketing--Account 6611 and 6613
Services--Account 6620
* * * * *

0
3. Amend Sec.  36.121 by revising paragraph (a) to read as follows:


Sec.  36.121  General.

    (a) The costs of central office equipment are carried in the 
following accounts:

Central Office Switching.....................  Account 2210.
Non-digital Switching........................   Account 2211.
Digital Electronic Switching.................  Account 2212.
Operator Systems.............................  Account 2220.
Central Office--Transmission.................  Account 2230.
Radio Systems................................  Account 2231.
Circuit Equipment............................  Account 2232.
 

* * * * *

0
4. Amend Sec.  36.124 by revising paragraphs (a) introductory text and 
(c) to read as follows:


Sec.  36.124  Tandem switching equipment--Category 2.

    (a) Tandem switching equipment is contained in Accounts 2210, 2211, 
and 2212. It includes all switching equipment in a tandem central 
office, including any associated tandem switchboard positions and any 
intertoll switching equipment. Intertoll switching equipment includes 
switching equipment used for the interconnection of message toll 
telephone circuits with each other or with local or tandem telephone 
central office trunks, intertoll dial selector equipment, or intertoll 
trunk equipment in No. 5 type electronic offices. Equipment, including 
switchboards used for recording of calling telephone numbers and other 
billing information in connection with customer dialed charge traffic 
is included with Local Switching Equipment--Category 3.
* * * * *
    (c) Effective July 1, 2001, through June 30, 2006, study areas 
subject to price cap regulation, pursuant to Sec.  61.41 of this 
chapter, shall assign the average balances of Accounts 2210, 2211, and 
2212 to Category 2, Tandem Switching Equipment based on the relative 
percentage assignment of the average balances of Account 2210, 2211, 
2212, and 2215 to Category 2, Tandem Switching Equipment during the 
twelve month period ending December 31, 2000.
* * * * *

0
5. Amend Sec.  36.125 by revising paragraphs (a) introductory text and 
(h) to read as follows:


Sec.  36.125  Local switching equipment--Category 3.

    (a) Local switching equipment is included in accounts 2210, 2211, 
and 2212. It comprises all central office switching equipment not 
assigned other categories. Examples of local switching equipment are 
basic switching train, toll connecting trunk equipment, interlocal 
trunks, tandem trunks, terminating senders used for toll completion, 
toll completing train, call reverting equipment, weather and time of 
day service equipment, and switching

[[Page 12550]]

equipment at electronic analog or digital remote line locations. 
Equipment used for the identification, recording and timing of customer 
dialed charge traffic, or switched private line traffic (e.g. 
transmitters, recorders, call identity indexers, perforators, 
ticketers, detectors, mastertimes) switchboards used solely for 
recording of calling telephone numbers in connection with customer 
dialed charge traffic, or switched private line traffic (or both) is 
included in this local switching category. Equipment provided and used 
primarily for operator dialed toll or customer dialed charge traffic 
except such equipment included in Category 2 Tandem Switching Equipment 
is also included in this local switching category. This includes such 
items as directors translators, sender registers, out trunk selectors 
and facilities for toll intercepting and digit absorption. Special 
services switching equipment which primarily performs the switching 
function for special services (e.g. switching equipment, TWX 
concentrators and switchboards) is also included in this local 
switching category.
* * * * *
    (h) Effective July 1, 2001, through June 30, 2006, study areas 
subject to price cap regulation, pursuant to Sec.  61.41 of this 
chapter, shall assign the average balances of Accounts 2210, 2211, and 
2212 to Category 3, Local Switching Equipment, based on the relative 
percentage assignment of the average balances of Account 2210, 2211, 
2212, and 2215 to Category 3, during the twelve month period ending 
December 31, 2000.
* * * * *

0
6. Amend Sec.  36.126 by revising paragraph (e)(2) to read as follows:


Sec.  36.126  Circuit equipment--Category 4.

* * * * *
    (e) * * *
    (2) Interexchange Circuit Equipment Used for Wideband Service--
Category 4.22--This category includes the circuit equipment portion of 
interexchange channels used for wideband services. The cost of 
interexchange circuit equipment in this category is determined 
separately for each wideband channel and is segregated between message 
and private line services on the basis of the use of the channels 
provided. The respective costs are allocated to the appropriate 
operation in the same manner as the related interexchange cable and 
wire facilities described in Sec.  36.155.
* * * * *

0
7. In Sec.  36.172, revise the section heading to read as follows:


Sec.  36.172  Other noncurrent assets--Account 1410.

* * * * *

0
8. Revise Sec.  36.201 to read as follows:


Sec.  36.201  Section arrangement.

    (a) This subpart is arranged in sections as follows:

General......................................................     36.202
Operating Revenues...........................................     36.211
    Basic local services revenue--Account 5000 (Class B           36.212
     telephone companies); Basic area revenue--Account 5001
     (Class A telephone companies)...........................
    Network Access Revenues--Accounts 5081 thru 5083.........     36.213
    Long Distance Message Revenue--Account 5100..............     36.214
    Miscellaneous Revenue--Account 5200......................     36.215
    Uncollectible Revenue--Account 5300......................     36.216
Certain Income Accounts:
    Other Operating Income and Expenses--Account 7100........     36.221
    Nonoperating Income and Expenses--Account 7300...........     36.222
    Interest and Related Items--Account 7500.................     36.223
    Extraordinary Items--Account 7600........................     36.224
    Income Effect of Jurisdictional Ratemaking Differences--      36.225
     Account 7910............................................
 


0
9. Amend Sec.  36.202 by revising paragraph (b) to read as follows:


Sec.  36.202  General.

* * * * *
    (b) Except for the Network Access Revenues, subsidiary record 
categories are maintained for all revenue accounts in accordance with 
the requirements of part 32. These subsidiary records identify services 
for the appropriate jurisdiction and will be used in conjunction with 
apportionment procedures stated in this manual.

0
10. Revise Sec.  36.211 to read as follows:


Sec.  36.211  General.

    (a) Operating revenues are included in the following accounts:

------------------------------------------------------------------------
                                                                Account
                        Account title                             No.
------------------------------------------------------------------------
Basic local service revenue (Class B telephone companies)....       5000
Basic Area Revenue (Class A telephone companies).............       5001
Network Access Revenues:
    End User Revenue.........................................       5081
    Switched Access Revenue..................................       5082
    Special Access Revenue...................................       5083
    Long Distance Message Revenue............................       5100
    Miscellaneous Revenue....................................       5200
    Uncollectible Revenue....................................       5300
------------------------------------------------------------------------


0
11. In Sec.  36.212, revise the section heading to read as follows:


Sec.  36.212  Basic local services revenue--Account 5000 (Class B 
telephone companies); Basic area revenue--Account 5001 (Class A 
telephone companies).

* * * * *

0
12. Amend Sec.  36.213 by revising paragraphs (a), (b), and (c) and by 
removing paragraphs (d) and (e) to read as follows:

[[Page 12551]]

Sec.  36.213  Network access revenues.

    (a) End User Revenue--Account 5081. Revenues in this account are 
directly assigned on the basis of analysis and studies.
    (b) Switched Access Revenue--Account 5082. Revenues in this account 
are directly assigned on the basis of analysis and studies.
    (c) Special Access Revenue--Account 5083. Revenues in this account 
are directly assigned on the basis of analysis and studies.
0
13. Revise Sec.  36.216 to read as follows:


Sec.  36.216  Uncollectible revenue--Account 5300.

    The amounts in this account are apportioned among the operations on 
the basis of analysis during a representative period of the portion of 
Account 1171, Allowance for doubtful accounts, related to 
telecommunications billing.

0
14. Revise Sec.  36.301 to read as follows:


Sec.  36.301  Section arrangement.

    (a) This subpart is arranged in sections as follows:

General....................................  36.301 and 36.302.
Plant Specific Operations Expenses:
    General................................  36.310.
    Network Support/General Support          36.311.
     Expenses--Accounts 6110 and 6120
     (Class B Telephone Companies);
     Accounts 6112, 6113, 6114, 6121, 6122,
     6123, and 6124 (Class A Telephone
     Companies).
    Central Office Expenses--Accounts 6210,  36.321
     6220, 6230 (Class B Telephone
     Companies); Accounts 6211, 6212, 6220,
     6231, and 6232 (Class A Telephone
     Companies).
    Information Origination/Termination      36.331.
     Expenses--Account 6310 (Class B
     Telephone Companies); Accounts 6311,
     6341, 6351, and 6362 (Class A
     Telephone Companies).
    Cable and Wire Facilities Expenses--     36.341.
     Account 6410 (Class B Telephone
     Companies); Accounts 6411, 6421, 6422,
     6423, 6424, 6426, 6431, and 6441
     (Class A Telephone Companies).
Plant Nonspecific Operations Expenses:
    General................................  36.351.
    Other Property Plant and Equipment       36.352.
     Expenses--Account 6510 (Class B
     Telephone Companies); Accounts 6511
     and 6512 (Class A Telephone Companies).
    Network Operations Expenses--Account     36.353.
     6530 (Class B Telephone Companies);
     Accounts 6531, 6532, 6533, 6534, and
     6535 (Class A Telephone Companies).
    Access Expenses--Account 6540..........  36.354.
    Depreciation and Amortization Expenses-- 36.361.
     Account 6560.
Customer Operations Expenses:
    General................................  36.371.
    Marketing--Account 6610 (Class B         36.372.
     Telephone Companies); Accounts 6611
     and 6613 (Class A Telephone Companies).
    Services--Account 6620.................  36.373.
    Telephone Operator Services............  36.374.
    Published Directory Listing............  36.375.
    All Other..............................  36.376.
    Category 1--Local Bus. Office Expense..  36.377.
    Category 2--Customer Services (Revenue   36.378.
     Accounting).
    Message Processing Expense.............  36.379.
    Other Billing and Collecting Expense...  36.380.
    Carrier Access Charge Billing and        36.381.
     Collecting Expense.
    Category 3--All other Customer Service   36.382.
     Expense.
Corporate Operations Expenses:
    General................................  36.391.
    General and Administrative Expenses--    36.392.
     Account 6720.
    Operating Taxes--Account 7200 (Class B   36.411 and 36.412.
     Telephone Companies); Accounts 7210,
     7220, 7230, 7240, and 7250 (Class A
     Telephone Companies).
    Equal Access Expenses..................  36.421.
 

0
15. Amend Sec.  36.310 by revising paragraph (a) to read as follows:


Sec.  36.310  General.

    (a) Plant specific operations expenses include the following 
accounts:

Network Support Expenses...............  Account 6110 (Class B Telephone
                                          Companies); Accounts 6112,
                                          6113, and 6114 (Class A
                                          Telephone Companies)
General Support Expenses...............  Account 6120 (Class B Telephone
                                          Companies); Accounts 6121,
                                          6122, 6123, and 6124 (Class A
                                          Telephone Companies).
Central Office Switching Expenses......  Account 6210 (Class B Telephone
                                          Companies); Accounts 6211 and
                                          6212 (Class A Telephone
                                          Companies)
Operator System Expenses...............  Account 6220
Central Office Transmission Expenses...  Account 6230 (Class B Telephone
                                          Companies); Accounts 6231 and
                                          6232 (Class A Telephone
                                          Companies).
Information Origination/Termination      Account 6310 (Class B Telephone
 Expenses.                                Companies); Accounts 6311,
                                          6341, 6351, and 6362 (Class A
                                          Telephone Companies).
Cable and Wire Facilities Expenses.....  Account 6410 (Class B Telephone
                                          Companies); Accounts 6411,
                                          6421, 6422, 6423, 6424, 6426,
                                          6431, and 6441 (Class A
                                          Telephone Companies).
 


[[Page 12552]]

* * * * *

0
16. In Sec.  36.311, revise the section heading to read as follows:


Sec.  36.311  Network Support/General Support Expenses--Accounts 6110 
and 6120 (Class B Telephone Companies); Accounts 6112, 6113, 6114, 
6121, 6122, 6123, and 6124 (Class A Telephone Companies).

* * * * *

0
17. Amend Sec.  36.321 by revising the section heading and paragraph 
(a) to read as follows:


Sec.  36.321  Central office expenses--Accounts 6210, 6220, and 6230 
(Class B telephone companies); Accounts 6211, 6212, 6220, 6231, and 
6232 (Class A telephone companies).

    (a) The expenses related to central office equipment are summarized 
in the following accounts:

Central Office Switching Expense.......  Account 6210 (Class B telephone
                                          companies); Accounts 6211 and
                                          6212 (Class A telephone
                                          companies).
Operator Systems Expense...............  Account 6220.
Central Office Transmission Expense....  Account 6230 (Class B telephone
                                          companies); Accounts 6231 and
                                          6232 (Class A telephone
                                          companies).
 

* * * * *

0
18. In Sec.  36.331, revise the section heading to read as follows:


Sec.  36.331  Information origination/termination expenses--Account 
6310 (Class B telephone companies); Accounts 6311, 6341, 6351, and 6362 
(Class A telephone companies).

* * * * *
    19. In Sec.  36.341, revise the section heading to read as follows:


Sec.  36.341  Cable and wire facilities expenses--Account 6410 (Class B 
telephone companies); Accounts 6411, 6421, 6422, 6423, 6424, 6426, 
6431, and 6441 (Class A telephone companies).

* * * * *

0
20. Revise Sec.  36.351 to read as follows:


Sec.  36.351  General.

    (a) Plant nonspecific operations expenses include the following 
accounts:

Other Property Plant and Equipment       Account 6510 (Class B telephone
 Expenses.                                companies); Accounts 6511 and
                                          6512 (Class A telephone
                                          companies).
Network Operations Expenses............  Account 6530 (Class B telephone
                                          companies); Accounts 6531,
                                          6532, 6533, 6534, and 6535
                                          (Class A telephone companies).
Access Expenses........................  Account 6540.
Depreciation and Amortization Expenses.  Account 6560.
 


0
21. In Sec.  36.352, revise the section heading to read as follows:


Sec.  36.352  Other property plant and equipment expenses--Account 6510 
(Class B telephone companies); Accounts 6511 and 6512 (Class A 
telephone companies).

* * * * *

0
22. In Sec.  36.353, revise the section heading to read as follows:


Sec.  36.353  Network operations expenses--Account 6530 (Class B 
telephone companies); Accounts 6531, 6532, 6533, 6534, and 6535 (Class 
A telephone companies).

* * * * *

0
23. Revise Sec.  36.371 to read as follows:


Sec.  36.371  General.

    Customer Operations Expenses are included in the following 
accounts:

Marketing..............................  Account 6610 (Class B telephone
                                          companies); Accounts 6611 and
                                          6613 (Class A telephone
                                          companies).
Services...............................  Account 6620.
 


0
24. In Sec.  36.372, revise the section heading to read as follows:


Sec.  36.372  Marketing--Account 6610 (Class B telephone companies); 
Accounts 6611 and 6613 (Class A telephone companies).

0
25. Revise Sec.  36.391 to read as follows:


Sec.  36.391  General.

    Corporate Operations Expenses are included in the following 
account:

General and Administrative...................  Account 6720.
 


0
26. Amend Sec.  36.392 by revising the section heading and paragraph 
(c) to read as follows:


Sec.  36.392  General and administrative--Account 6720.

* * * * *
    (c) The expenses in this account are apportioned among the 
operations on the basis of the separation of the cost of the combined 
Big Three Expenses which include the following accounts:

Plant Specific Expenses

Central Office Switching Expenses--Account 6210 (Class B Telephone 
Companies); Accounts 6211 and 6212 (Class A Telephone Companies)
Operators Systems Expenses--Account 6220
Central Office Transmission Expenses--Account 6230 (Class B Telephone 
Companies); Accounts 6231 and 6232 (Class A Telephone Companies)
Information Origination/Termination Expenses--Account 6310 (Class B 
Telephone Companies); Accounts 6311, 6341, 6351, and 6362 (Class A 
Telephone Companies)
Cable and Wire Facilities Expense--Account 6410 (Class B Telephone 
Companies); Accounts 6411, 6421, 6422, 6423, 6424, 6426, 6431, and 6441 
(Class A Telephone Companies)

[[Page 12553]]

Plant Non-Specific Expenses

Network Operations Expenses--Account 6530 (Class B Telephone 
Companies); Accounts 6531, 6532, 6533, 6534, and 6535 (Class A 
Telephone Companies)

Customer Operations Expenses

Marketing--Account 6610 (Class B Telephone Companies); Accounts 6611 
and 6613 (Class A Telephone Companies)
Services--Account 6620


0
27. In Sec.  36.411, revise the section heading to read as follows:


Sec.  36.411  Operating taxes--Account 7200 (Class B Telephone 
Companies); Accounts 7210, 7220, 7230, 7240, and 7250 (Class A 
Telephone Companies).

0
28. Revise Sec.  36.501 to read as follows:


Sec.  36.501  General.

    For separations purposes, reserves and deferrals include the 
following accounts:

Other Jurisdictional Assets--Net.......  Account 1500.
Accumulated Depreciation...............  Account 3100.
Accumulated Depreciation--Property Held  Account 3200.
 for Future Telecommunications Use.
Accumulated Amortization--Capital        Account 3400 (Class B Telephone
 Leases.                                  Companies); Account 3410
                                          (Class A Telephone Companies).
Net Current Deferred Operating Income    Account 4100.
 Taxes.
Net Noncurrent Deferred Operating        Account 4340.
 Income Taxes.
Other Jurisdictional Liabilities and     Account 4370.
 Deferred Credits--Net.
 


0
29. In Sec.  36.505, revise the section heading to read as follows:


Sec.  36.505  Accumulated amortization--Tangible--Account 3400 (Class B 
Telephone Companies); Accumulated amortization--Capital Leases--Account 
3410 (Class A Telephone Companies).

* * * * *

0
30. Amend Sec.  36.631 by revising paragraphs (a) introductory text, 
(c) introductory text, and (d) introductory text to read as follows:


Sec.  36.631  Expense adjustment.

    (a) Until December 31, 1987, for study areas reporting 50,000 or 
fewer working loops pursuant to Sec.  36.611(h), the expense adjustment 
(additional interstate expense allocation) is equal to the sum of the 
following:
* * * * *
    (c) Beginning January 1, 1988, for study areas reporting 200,000 or 
fewer working loops pursuant to Sec.  36.611(h), the expense adjustment 
(additional interstate expense allocation) is equal to the sum of 
paragraphs (c)(1) through (2) of this section. After January 1, 2000, 
the expense adjustment (additional interstate expense allocation) for 
non-rural telephone companies serving study areas reporting 200,000 or 
fewer working loops pursuant to Sec.  36.611(h) shall be calculated 
pursuant to Sec.  54.309 of this chapter or Sec.  54.311 of this 
chapter (which relies on this part), whichever is applicable.
    (d) Beginning January 1, 1988, for study areas reporting more than 
200,000 working loops pursuant to Sec.  36.611(h), the expense 
adjustment (additional interstate expense allocation) is equal to the 
sum of paragraphs (d)(1) through (4) of this section. After January 1, 
2000, the expense adjustment (additional interstate expense allocation) 
shall be calculated pursuant to Sec.  54.309 of this chapter or Sec.  
54.311 of this chapter (which relies on this part), whichever is 
applicable.
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[FR Doc. 04-5015 Filed 3-16-04; 8:45 am]
BILLING CODE 6712-01-P