[Federal Register Volume 74, Number 98 (Friday, May 22, 2009)]
[Rules and Regulations]
[Pages 23955-23956]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-12033]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 36

[CC Docket No. 80-286; FCC 09-44]


Jurisdictional Separations and Referral to the Federal-State 
Joint Board

AGENCY: Federal Communications Commission.

ACTION: Interim rule.

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SUMMARY: Jurisdictional separations is the process by which incumbent 
local exchange carriers (incumbent LECs) apportion regulated costs 
between the intrastate and interstate jurisdictions. In this document, 
the Commission extends until June 30, 2010, the current freeze of part 
36 category relationships and jurisdictional cost allocation factors 
used in jurisdictional separations. Extending the freeze provides 
stability for, and avoids imposing undue burdens on, carriers that must 
comply with the Commission's separations rules while the Commission 
considers issues relating to comprehensive reform of the jurisdictional 
separations process.

DATES: Effective June 22, 2009.

FOR FURTHER INFORMATION CONTACT: Daniel Ball, Attorney Advisor, at 202-
418-1577, Pricing Policy Division, Wireline Competition Bureau.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order (R&O) in CC Docket No. 80-286, FCC 09-44, released on May 15, 
2009. The full text of this document is available for public inspection 
during regular business hours in the FCC Reference Center, Room CY-
A257, 445 12th Street, SW., Washington, DC 20554.
    1. Jurisdictional separations is the process by which incumbent 
LECs apportion regulated costs between the intrastate and interstate 
jurisdictions. The freeze of Part 36 category relationships and 
jurisdictional cost allocation factors was first implemented for five 
years on July 1, 2001, 66 FR 33202, June 21, 2001 (2001 Separations 
Freeze Order), then extended approximately three years on June 23, 
2006, 71 FR 29843, May 24, 2006 (2006 Separations Freeze Extension 
Order). On March 27, 2009, the Commission released a notice of proposed 
rulemaking seeking comment on a further extension of the freeze until 
June 30, 2010. 74 FR 15236 (Apr. 3, 2009) (NPRM). The overwhelming 
majority of parties filing comments in response to the NPRM supported 
extension of the freeze. This R&O extends the current freeze until June 
30, 2010. Extending the freeze provides stability for, and avoids 
imposing undue burdens on, carriers that must comply with the 
Commission's separations rules while the Commission, working with the 
Federal-State Joint Board on Separations, considers issues relating to 
comprehensive separations reform.
    2. The extended freeze will be implemented as described in the 2001 
Separations Freeze Order. Specifically, price-cap carriers would use 
the same relationships between categories of investment and expenses 
within part 32 accounts and the same jurisdictional allocation factors 
that have been in place since the inception of the current freeze on 
July 1, 2001. Rate-of-return carriers would use the same frozen 
jurisdictional allocation factors, and would use the same frozen 
category relationships if they had opted previously to freeze those as 
well.

I. Procedural Matters

A. Final Regulatory Flexibility Certification

    3. As required by the Regulatory Flexibility Act, the Commission 
certifies that these regulatory amendments will not have a significant 
impact on small business entities.

B. Paperwork Reduction Act

    4. The R&O does not propose any new or modified information 
collections subject to the Paperwork Reduction Act of 1995 (PRA), 
Public Law 104-13. In addition, therefore, it does not contain any new, 
modified, or proposed ``information collection burden for small 
business concerns with fewer than 25 employees,'' pursuant to the Small 
Business Paperwork Relief Act of 2002, Pub. L. 107-198, 44 U.S.C. 
3506(c)(4).

C. Congressional Review Act

    5. The Commission will send a copy of the R&O in a report to be 
sent to Congress and the Government Accountability Office pursuant to 
the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).

II. Ordering Clauses

    6. Pursuant to sections 1, 4(i) and (j), 214(e), 254, and 410 of 
the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 
154(j), 214(e), 254, and 410, the R&O is adopted.
    7. The report and order shall be effective June 22, 2009.
    8. Pursuant to section 410(c) of the Communications Act of 1934, as 
amended, 47 U.S.C. 410(c), the issues set forth in the R&O are referred 
to the Federal-State Joint Board on Separations for preparation of a 
recommended decision.
    9. The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, shall send a copy of

[[Page 23956]]

the R&O, 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

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone, and Uniform system of accounts.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Interim Rules

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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

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


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


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2. In 47 CFR part 36 remove the words ``June 30, 2006'' each place they 
appear and add, in their place, the words ``June 30, 2010'' in the 
following places:
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a. Section 36.3(a), (b), (c), (d), and (e);
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b. Section 36.123(a)(5), and (a)(6);
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c. Section 36.124(c), and (d);
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d. Section 36.125(h), (i), and (j);
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e. Section 36.126(b)(5), (c)(4), (e)(4), and (f)(2);
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f. Section 36.141(c);
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g. Section 36.142(c);
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h. Section 36.152(d);
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i. Section 36.154(g);
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j. Section 36.155(b);
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k. Section 36.156(c);
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l. Section 36.157(b);
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m. Section 36.191(d);
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n. Section 36.212(c);
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o. Section 36.214(a);
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p. Section 36.372;
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q. Section 36.374(b), and (d);
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r. Section 36.375(b)(4), and (b)(5);
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s. Section 36.377(a) introductory text, (a)(1)(ix), (a)(2)(vii), 
(a)(3)(vii), (a)(4)(vii), (a)(5)(vii), and (a)(6)(vii);
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t. Section 36.378(b)(1);
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u. Section 36.379(b)(1), and (b)(2);
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v. Section 36.380(d), and (e);
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w. Section 36.381(c) and (d); and
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x. Section 36.382(a).

[FR Doc. E9-12033 Filed 5-21-09; 8:45 am]
BILLING CODE 6712-01-P