[Federal Register Volume 83, Number 49 (Tuesday, March 13, 2018)]
[Proposed Rules]
[Pages 10817-10822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04563]



[[Page 10817]]

=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 36

[WC Docket No. 14-130, CC Docket No. 14-130; FCC 18-22]


Comprehensive Review of the Uniform System of Accounts; 
Jurisdictional Separations and Referral to the Federal-State Joint 
Board

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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

SUMMARY: In this document, the Federal Communications Commission 
(Commission) seeks comment on its proposal to adopt recommendations 
from the Federal-State Joint Board on Jurisdictional Separations and to 
amend the Part 36 jurisdictional separations rules accordingly. 
Acknowledging the implications that reforms adopted in the Part 32 
Reform Order would have on the Part 36 rules, the Commission referred 
to the Federal-State Joint Board on Jurisdictional Separations (Joint 
Board) consideration of how and when to modify Part 36 to ensure that 
it is consistent with the Part 32 reforms. The Joint Board issued its 
Recommended Decision in October 2017. The Commission proposes to adopt 
each of the Joint Board's recommendations using, with minor exceptions, 
the amendment language the Joint Board suggested, and seeks comment on 
these proposals.

DATES: Comments are due on or before April 12, 2018. Reply comments are 
due on or before April 27, 2018. If you anticipate that you will be 
submitting comments, but find it difficult to do so within the period 
of time allowed by this document, you should advise the contact listed 
below as soon as possible.

ADDRESSES: You may submit comments, identified by WC Docket Nos. 17-
287, 11-42, and 09-197, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's website: http://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting 
comments.
     People with Disabilities: Contact the Commission to 
request reasonable accommodations (accessible format documents, sign 
language interpreters, CART, etc.) by email: [email protected] or phone: 
(202) 418-0530 or TTY: (202) 418-0432.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Edward Krachmer, Pricing Policy 
Division, Wireline Competition Bureau, at (202) 418-1540 or via email 
at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking, FCC 18-22, released February 22, 2018. For a 
full text copy of this document please go to the following internet 
Address: https://www.fcc.gov/document/fcc-proposes-adopt-separations-joint-boards-recommendations.

I. Introduction

    1. In the Notice of Proposed Rulemaking (NPRM), the Commission 
takes steps to harmonize its rules regarding jurisdictional separations 
to reflect the Commission's actions in February 2017 to reduce and 
eliminate unnecessary accounting rules. Today, the Commission furthers 
its goal of updating and modernizing the Commission's rules to minimize 
outdated compliance burdens on carriers and to free up scarce resources 
that can accordingly be used to expand modern networks that bring 
economic opportunity, job creation and civic engagement to all 
Americans.
    2. In the Part 32 Reform Order, the Commission amended its Part 32 
Uniform System of Accounts (USOA) to streamline or eliminate rules that 
had outlived their utility. Recognizing that those amendments had 
implications for its Part 36 jurisdictional separations rules, the 
Commission referred to the Federal-State Joint Board on Jurisdictional 
Separations (Joint Board) consideration of how and when the Part 36 
rules should be modified to reflect the reforms adopted in the Part 32 
Reform Order. The Commission asked the Joint Board to consider how the 
Part 32 reforms ``impact Part 36 and consequently the rule changes 
necessary to ensure the jurisdictional separations rules are 
consistent'' with changes to Part 32. The Commission also asked that 
the Joint Board ``prepare a recommended decision . . . regarding how 
and when the Commission's jurisdictional separations rules should be 
modified to reflect the issues in the referral.'' The Joint Board 
released its Recommended Decision on October 27, 2017.
    3. In this NPRM, the Commission proposes to adopt each of the Joint 
Board's recommendations and to amend the Part 36 rules consistent with 
those recommendations. The Commission invites comment on these 
proposals.

II. Background

    4. Jurisdictional separations are the third step in a four-step 
regulatory process used to establish tariffed rates for interstate and 
intrastate regulated services for incumbent local exchange carriers 
(LECs). First, carriers record their costs into various accounts in 
accordance with the USOA prescribed by Part 32 of the Commission's 
rules. Second, carriers divide the costs in these accounts between 
regulated and nonregulated activities in accordance with Part 64 of the 
Commission's rules. This division ensures that the costs of 
nonregulated activities will not be recovered in regulated interstate 
service rates. Third, carriers separate the regulated costs between the 
intrastate and interstate jurisdictions in accordance with the 
Commission's Part 36 separations rules. This process begins with the 
carriers assigning regulated costs to various investment and expense 
categories. In certain instances, carriers further disaggregate costs 
among service categories. Finally, carriers apportion the interstate 
regulated costs among the interexchange services and rate elements that 
form the cost basis for their exchange access tariffs. Carriers subject 
to rate-of-return regulation perform this apportionment in accordance 
with Part 69 of the Commission's rules.
    5. Historically, Part 32 divided incumbent LECs into two classes 
for accounting purposes based on an incumbent LEC's annual regulated 
revenues: Class A incumbent LECs (currently those with regulated annual 
revenues equal to or greater than $157 million) and Class B incumbent 
LECs (currently those with less than $157 million in annual regulated 
revenues). Part 32 required Class A carriers to create and maintain 
substantially more accounts than it required from smaller Class B 
carriers. In all but one case, Class A carrier accounts could be 
grouped into sets that were represented by single Class B carrier 
accounts--that is, such Class A accounts consolidated into, or ``rolled 
up'' into Class B accounts.
    6. The reforms adopted in the Part 32 Reform Order include the 
elimination of Part 32's distinction between Class A and Class B 
incumbent LECs. Under the new rules, effective January 1, 2018, all 
carriers subject to Part 32 are required to keep only the less onerous 
Class B accounts.
    7. At the request of the Commission, the Joint Board considered the 
impact of the Part 32 reforms on the Part 36 rules and released a 
recommended decision. In the Recommended Decision, the Joint

[[Page 10818]]

Board recommends removing all of the provisions in the Part 36 rules 
that deal with Class A accounts, allowing former Class A carriers 
(carriers with revenue equal to or greater than $157 million for 
calendar year 2016) to select between the former Class A and former 
Class B procedures for apportioning general support facilities costs, 
and making certain stylistic and typographical corrections to the Part 
36 rules.

III. Discussion

    8. The Commission proposes to adopt each of the Joint Board's 
recommendations and to amend the Part 36 rules using, with minor 
exceptions, the language the Joint Board suggests. The Commission 
invites comment on these proposals. The Commission also welcomes 
comment on whether it should make other changes to the Part 36 rules to 
harmonize them with the changes the Commission made to Part 32 in the 
Part 32 Reform Order.
    9. First, the Commission proposes to adopt the Joint Board's 
recommendation to remove from its Part 36 rules all the provisions that 
deal with Class A accounts, because carriers are no longer be required 
to keep such accounts since the revised Part 32 rules took effect on 
January 1, 2018. Under this approach, the Commission proposes to: (a) 
Delete references to Class A accounts and the phrase ``Class B 
accounts'' in Part 32 rules that contain parallel references to Class A 
accounts and the Class B accounts into which they roll up; (b) delete 
references to current-year account balances and modify references to 
Class A carriers in other Part 36 rules; and (c) delete references to 
Class A accounts in sections 36.501 and 36.505 of the rules. The 
Commission seeks comment on this proposal as well as on whether there 
is a different approach it should take in harmonizing the Part 36 rules 
with the newly amended Part 32 rules.
    10. Second, the Commission proposes to amend section 36.112, which 
concerns the apportionment of general support facilities costs. As the 
Joint Board observes, this is the only Part 36 rule that provides 
different separations procedures for Class A and Class B carriers. 
Consistent with the Joint Board's recommendation, the Commission 
proposes to allow former Class A carriers (carriers with revenue equal 
to or greater than $157 million for calendar year 2016) to select 
between these two procedures in apportioning their general support 
facilities costs. The Commission seeks comment on permitting such 
selections. The Commission also seeks comment on whether each carrier 
should be permitted to make an election only one time or be allowed to 
change the approach it takes over time. What are the practical 
consequences of permitting carriers to make such elections?
    11. Additionally, consistent with the Joint Board's 
recommendations, the Commission's proposed rule changes include certain 
stylistic and typographical corrections to the Part 36 rules. For 
example, the Commission proposes to correct a spelling error in section 
36.126(b) and to hyphenate the adjective ``twelve month'' throughout 
Part 36. In addition to adopting these corrections, are there other 
ministerial corrections that the Commission should make to those rules?
    12. The Commission also seeks comment on the timing for making 
these changes to its Part 36 rules. The changes to its Part 32 rules 
took effect January 1, 2018. Should the Commission make harmonizing 
changes to its Part 36 rules as soon as practicable, as the Joint Board 
recommends? Should the Commission make changes effective January 1, 
2019? The Commission asks commenters to explain the implications of 
different effective dates for any changes it makes to harmonize its 
Part 36 rules with its newly revised Part 32 rules.

IV. Procedural Matters

A. Comment Filing Procedures

    13. Pursuant to sections 1.415 and 1.419 of the Commission's rules, 
47 CFR 1.415, 1.419, interested parties may file comments and reply 
comments on or before the dates indicated on the first page of this 
document. Comments may be filed using the Commission's Electronic 
Comment Filing System (ECFS). See Electronic Filing of Documents in 
Rulemaking Proceedings, 63 FR 24121 (1998).
     Electronic Filers: Comments may be filed electronically 
using the internet by accessing the ECFS: http://apps.fcc.gov/ecfs/.
     Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing. If more than one docket 
or rulemaking number appears in the caption of this proceeding, filers 
must submit two additional copies for each additional docket or 
rulemaking number.
     Filings can be sent by hand or messenger delivery, by 
commercial overnight courier, or by first-class or overnight U.S. 
Postal Service mail. All filings must be addressed to the Commission's 
Secretary, Office of the Secretary, Federal Communications Commission.
     All hand-delivered or messenger-delivered paper filings 
for the Commission's Secretary must be delivered to FCC Headquarters at 
445 12th St. SW, Room TW-A325, Washington, DC 20554. The filing hours 
are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together 
with rubber bands or fasteners. Any envelopes and boxes must be 
disposed of before entering the building.
     Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9050 Junction Drive, 
Annapolis Junction, MD 20701.
     U.S. Postal Service first-class, Express, and Priority 
mail must be addressed to 445 12th Street SW, Washington DC 20554.
    People with Disabilities: To request materials in accessible 
formats for people with disabilities (braille, large print, electronic 
files, audio format), send an email to [email protected] or call the 
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).

B. Ex Parte Presentations

    14. The proceeding this FNPRM initiates shall be treated as a 
``permit-but-disclose'' proceeding in accordance with the Commission's 
ex parte rules. Persons making ex parte presentations must file a copy 
of any written presentation or a memorandum summarizing any oral 
presentation within two business days after the presentation (unless a 
different deadline applicable to the Sunshine period applies). Persons 
making oral ex parte presentations are reminded that memoranda 
summarizing the presentation must (1) list all persons attending or 
otherwise participating in the meeting at which the ex parte 
presentation was made, and (2) summarize all data presented and 
arguments made during the presentation. If the presentation consisted 
in whole or in part of the presentation of data or arguments already 
reflected in the presenter's written comments, memoranda or other 
filings in the proceeding, the presenter may provide citations to such 
data or arguments in his or her prior comments, memoranda, or other 
filings (specifying the relevant page and/or paragraph numbers where 
such data or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with rule 1.1206(b). In proceedings governed by 
rule 1.49(f) or for which the Commission has made available a method of 
electronic filing, written ex parte presentations and memoranda

[[Page 10819]]

summarizing oral ex parte presentations, and all attachments thereto, 
must be filed through the electronic comment filing system available 
for that proceeding, and must be filed in their native format (e.g., 
.doc, .xml, .ppt, searchable .pdf). Participants in this proceeding 
should familiarize themselves with the Commission's ex parte rules.

C. Paperwork Reduction Act

    15. This document does not contain proposed information 
collection(s) subject to the Paperwork Reduction Act of 1995 (PRA), 
Public Law 104-13. In addition, therefore, it does not contain any new 
or modified information collection burden for small business concerns 
with fewer than 25 employees, pursuant to the Small Business Paperwork 
Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).

D. Initial Regulatory Flexibility Act Analysis

    16. As required by the Regulatory Flexibility Act of 1980 (RFA), 
the Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) for this Notice of Proposed Rulemaking, of the possible 
significant economic impact on small entities of the policies and rules 
addressed in this document. The IRFA is set forth in Appendix C. 
Written public comments are requested on this IRFA. Comments must be 
identified as responses to the IRFA and must be filed by the deadlines 
for comments on the NPRM indicated on the first page of this document. 
The Commission's Consumer and Governmental Affairs Bureau, Reference 
Information Center, will send a copy of this Notice of Proposed 
Rulemaking, including the IRFA, to the Chief Counsel for Advocacy of 
the Small Business Administration (SBA).

V. Initial Regulatory Flexibility Analysis

    17. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), the Commission has prepared this Initial Regulatory 
Flexibility Analysis (IRFA) of the possible significant economic impact 
on small entities by the proposals in this Notice of Proposed 
Rulemaking (Notice). Written public comments are requested on this 
IRFA. Comments must be identified as responses to the IRFA and must be 
filed by the deadlines for comments and reply comments on the Notice 
provided above. The Commission will send a copy of the Notice, 
including this IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration (SBA). In addition, the Notice and the IRFA (or 
summaries thereof) will be published in the Federal Register.

A. Need for, and Objectives of, the Proposed Rules

    18. In the Part 32 Reform Order, the Commission amended its Part 32 
Uniform System of Accounts (USOA) to streamline or eliminate rules that 
had outlived their utility. Recognizing that those amendments had 
implications for its Part 36 jurisdictional separations rules, the 
Commission referred to the Federal-State Joint Board on Jurisdictional 
Separations (Joint Board) consideration of how and when the Part 36 
rules should be modified to reflect the reforms adopted in the Part 32 
Reform Order. The Commission asked the Joint Board to consider how 
those reforms ``impact Part 36 and consequently the rule changes 
necessary to ensure the jurisdictional separations rules are 
consistent'' with changes to Part 32. The Commission also asked that 
the Joint Board ``prepare a recommended decision . . . regarding how 
and when the Commission's jurisdictional separations rules should be 
modified to reflect the issues in the referral.'' The Joint Board 
released its Recommended Decision on October 27, 2017. In this Notice 
of Proposed Rulemaking (Notice), the Commission invites comment on that 
Recommended Decision and, in particular, on the proposed amendments to 
the Part 36 rules recommended by the Joint Board. The purpose of those 
proposed amendments is to ensure that the Part 36 rules are consistent 
with the amendments to the Part 32 rules adopted in the Part 32 Reform 
Order.

B. Legal Basis

    19. The legal basis for the Notice of Proposed Rulemaking is 
contained in sections 1, 2, 4(i), 201-205, 215, 218, 220, and 410 of 
the Communications Act of 1934, as amended.

C. Description and Estimate of the Number of Small Entities to Which 
Rules May Apply

    20. The RFA directs agencies to provide a description of, and, 
where feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted. 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). Nationwide, there are a total of approximately 
27.9 million small businesses, according to the SBA.
    21. Incumbent Local Exchange Carriers. Neither the Commission nor 
the SBA has developed a small business size standard specifically for 
providers of incumbent local exchange services. The closest applicable 
size standard under the SBA rules is for Wired Telecommunications 
Carriers. Under the SBA definition, a carrier is small if it has 1,500 
or fewer employees. According to the FCC's Telephone Trends Report 
data, 1,307 incumbent local exchange carriers (LECs) reported that they 
were engaged in the provision of local exchange services. Of these 
1,307 carriers, an estimated 1,006 have 1,500 or fewer employees and 
301 have more than 1,500 employees. Consequently, the Commission 
estimates that most incumbent LECs are small entities that may be 
affected by the rules and policies adopted herein.
    22. The Commission has included small incumbent LECs in this RFA 
analysis. As noted above, a ``small business'' under the RFA is one 
that, inter alia, meets the pertinent small business size standard 
(e.g., a telephone communications business having 1,500 or fewer 
employees), and ``is not dominant in its field of operation.'' The 
SBA's Office of Advocacy contends that, for RFA purposes, small 
incumbent LECs are not dominant in their field of operation because any 
such dominance is not ``national'' in scope. Because the Commission's 
proposals concerning the Part 36 rules will affect all incumbent LECs, 
some entities employing 1,500 or fewer employees may be affected by the 
proposals made in this Notice. The Commission has therefore included 
small incumbent LECs in this RFA analysis, although it emphasizes that 
this RFA action has no effect on the Commission's analyses and 
determinations in other, non-RFA contexts. The Commission notes, 
however, that proposals in the Notice are focused on incumbent LECs 
with regulated annual revenues equal to or above $157 million, a group 
that excludes many small incumbent LECs.

D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    23. None.

[[Page 10820]]

E. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    24. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include (among others) the following four alternatives: (1) 
The establishment of differing compliance and reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) an 
exemption from coverage of the rule, or part thereof, for small 
entities.
    25. As discussed above, the purpose of the proposals in this Notice 
is to ensure that the Part 36 rules are consistent with the amendments 
to the Part 32 rules adopted in the Part 32 Reform Order. The 
Commission seeks comment on the effects its proposals would have on 
small entities, and whether any rules that it adopts should apply 
differently to small entities. The Commission requests commenters to 
consider the costs and burdens of possible rule amendments on small 
incumbent LECs and whether such amendments would disproportionately 
affect specific types of carriers or ratepayers.
    26. The Commission believes that the proposed rules would ease the 
administrative burden of regulatory compliance for incumbent LECs, 
including any small incumbent LECs those rules might affect. The Part 
32 Reform Order reduced the number of Part 32 accounts that incumbent 
LECs with regulated annual revenues equal to or above $157 million are 
required to keep, and the proposed amendments to Part 36 would carry 
forward those reductions into the jurisdictional separations process. 
If those amendments can be said to have any effect under the RFA, it is 
to reduce a regulatory compliance burden for small incumbent LECs.

F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    27. None.

VI. Ordering Clauses

    28. Accordingly, it is ordered that, pursuant to the authority 
contained in sections 1, 2, 4(i), 201-205, 215, 218, 220, and 410 of 
the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 154(i), 
201-205, 215, 218, 220, 410, this Notice of Proposed Rulemaking is 
adopted.
    29. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Notice of Proposed Rulemaking, including the Initial 
Regulatory Flexibility Analysis, 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; Uniform system of accounts.

Federal Communications Commission.
Marlene H. Dortch,
Secretary, Office of the Secretary.

Proposed Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 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. 151, 154(i) and (j), 205, 221(c), 254, 
303(r), 403, 410, and 1302 unless otherwise noted.

0
2. Revise Sec.  36.112 to read as follows:


Sec.  36.112   Apportionment procedure.

    (a) The costs of the general support facilities of local exchange 
carriers that had annual revenues from regulated telecommunications 
operations equal to or greater than $157 million for calendar year 2016 
are apportioned among the operations on the basis of one of the 
following, at the election of the local exchange carrier:
    (1) The separation of the costs of the combined Big Three Expenses 
which include the following accounts:

Plant Specific Expenses

Central Office Switching Expenses--Account 6210
Operators Systems Expenses--Account 6220
Central Office Transmission Expenses--Account 6230
Information Origination/Termination Expenses--Account 6310
Cable and Wire Facilities Expenses--Account 6410

Plant Non-Specific Expenses

Network Operations Expenses--Account 6530

Customer Operations Expenses

Marketing--Account 6610
Services--Account 6620; or

    (2) The separation of the costs of Central Office Equipment, 
Information Origination/Termination Equipment, and Cable and Wire 
Facilities, combined.
    (b) The costs of the general support facilities of local exchange 
carriers that had annual revenues from regulated telecommunications 
operations less than $157 million for calendar year 2016 are 
apportioned among the operations on the basis of the separation of the 
costs of Central Office Equipment, Information Origination/Termination 
Equipment, and Cable and Wire Facilities, combined.


Sec.  36.121   [Amended]

0
3. Amend Sec.  36.121 as follows:
0
a. Revise paragraph (a); and
0
b. In paragraph (c)(1)(i), remove ``130 volt'' and add, in its place, 
``130-volt''.
    The revision reads as follows:


Sec.  36.121   General.

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

Central Office Switching Account--2210.
Operator Systems Account--2220.
Central Office--Transmission Account--2230.
* * * * *


Sec.  [thinsp]36.124   [Amended]

0
4. Amend Sec.  36.124 as follows:
0
a. In paragraph (a), remove ``Accounts 2210, 2211, and 2212'' and add, 
in its place, ``Account 2210''.
0
b. In paragraph (c), remove ``assign the average balances of Accounts 
2210, 2211, and 2212'' and add, in its place, ``assign the average 
balance of Account 2210''; and remove ``assignment of the average 
balances of Accounts 2210, 2211, and 2212,'' and add, in its place, 
``assignment of the average balance of Account 2210 (or, if Accounts 
2211 and 2212 were required to be maintained at the applicable time, 
the average balances of Accounts 2211 and 2212)''.


Sec.  [thinsp]36.125   [Amended]

0
5. Amend Sec.  36.125 as follows:
0
a. In paragraph (a), remove ``Accounts 2210, 2211, and 2212'' and add, 
in its place, ``Account 2210''; remove ``e.g. transmitters,'' and add, 
in its place, ``e.g., transmitters,''; remove ``directors'' and, add in 
its place, ``directors,''; and remove ``e.g. switching'' and add, in 
its place, ``e.g., switching''.

[[Page 10821]]

0
b. In paragraph (h), remove ``assign the average balances of Accounts 
2210, 2211, and 2212'' and add, in its place, ``assign the average 
balance of Account 2210''; and remove ``assignment of the average 
balances of Accounts 2210, 2211, and 2212,'' and add, in its place, 
``assignment of the average balance of Account 2210 (or, if Accounts 
2211 and 2212 were required to be maintained at the applicable time, 
the average balances of Accounts 2211 and 2212)''.


Sec.  [thinsp]36.126   [Amended]

0
6. Amend Sec.  36.126 as follows:
0
a. In paragraph (a), remove ``Accounts 2230 through 2232 respectively'' 
and add, in its place, ``Account 2230''.
0
b. In the introductory text of paragraph (b), remove ``equiment'' and 
add, in its place, ``equipment''.
0
c. In paragraphs (b)(5) and (6), remove ``assign the average balances 
of Accounts 2230 through 2232'' and add, in its place, ``assign the 
average balance of Account 2230''; and remove ``assignment of the 
average balances of Accounts 2230 through 2232'' and add, in its place, 
``assignment of the average balance of Account 2230 (or, if Accounts 
2231 and 2232 were required to be maintained at the applicable time, 
the average balances of Accounts 2231 and 2232)''.


Sec.  36.154   [Amended]

0
7. Amend Sec.  [thinsp]36.154 by removing ``jurisdication'' and adding, 
in its place, ``jurisdiction''.


Sec.  [thinsp]36.201   [Amended]

0
8. Amend Sec.  36.201 as follows:
0
a. Redesignate paragraph (a) as an undesignated paragraph; and
0
b. In the table, remove ``(Class B telephone companies); Basic area 
revenue--Account 5001 (Class A telephone companies)''.


Sec.  [thinsp]36.211   [Amended]

0
9. Amend Sec.  36.211 as follows:
0
a. Redesignate paragraph (a) as an undesignated paragraph; and
0
b. In the table:
0
i. Remove ``Basic local service revenue (Class B telephone companies)'' 
and add, in its place, ``Basic Local Service Revenue''; and
0
ii. Remove the entry ``Basic Area Revenue (Class A telephone 
companies)''.
0
10. Amend Sec.  36.212 by revising the section heading to read as 
follows:


Sec.  [thinsp]36.212   Basic local services revenue--Account 5000.

* * * * *


Sec.  [thinsp]36.301   [Amended]

0
11. Amend Sec.  36.301 as follows:
0
a. Redesignate paragraph (a) as an undesignated paragraph; and
0
b. In the table:
0
i. Remove ``(Class B Telephone Companies); Accounts 6112, 6113, 6114, 
6121, 6122, 6123, and 6124 (Class A Telephone Companies)'';
0
ii. Remove ``Accounts 6210, 6220, 6230 (Class B Telephone Companies); 
Accounts 6211, 6212, 6220, 6231, and 6232 (Class A Telephone 
Companies)'' and add, in its place, ``Accounts 6210, 6220, and 6230'';
0
iii. Remove ``(Class B Telephone Companies); Accounts 6311, 6341, 6351, 
and 6362 (Class A Telephone Companies)'';
0
iv. Remove ``(Class B Telephone Companies); Accounts 6411, 6421, 6422, 
6423, 6424, 6426, 6431, and 6441 (Class A Telephone Companies)'';
0
v. Remove ``(Class B Telephone Companies); Accounts 6511 and 6512 
(Class A Telephone Companies)'';
0
vi. Remove ``(Class B Telephone Companies); Accounts 6531, 6532, 6533, 
6534, and 6535 (Class A Telephone Companies)'';
0
vii. Remove ``(Class B Telephone Companies); Accounts 6611 and 6613 
(Class A Telephone Companies)'';
0
viii. Remove ``Local Bus. Office'' and add, in its place, ``Local 
Business Office''; and
0
ix. Remove ``(Class B Telephone Companies); Accounts 7210, 7220, 7230, 
7240, and 7250 (Class A Telephone Companies)''.


Sec.  [thinsp]36.302   [Amended]

0
12. Amend Sec.  36.302 in the introductory text to paragraph (c)(1) and 
in paragraph (c)(1)(i), by removing ``SRC'' and adding, in its place, 
``SRCs''.
0
13. Amend Sec.  36.310 by revising paragraph (a) to read as follows:


Sec.  [thinsp]36.310   General.

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

Network Support Expenses. Account 6110
General Support Expenses. Account 6120
Central Office Switching Expenses. Account 6210
Operator System Expenses. Account 6220
Central Office Transmission Expenses. Account 6230
Information Origination/Termination Expenses. Account 6310
Cable and Wire Facilities Expenses. Account 6410
* * * * *
0
14. Amend Sec.  36.311 by revising the section heading to read as 
follows:


Sec.  [thinsp]36.311   Network Support/General Support Expenses--
Accounts 6110 and 6120.

* * * * *
0
15. Amend Sec.  36.321 as follows:
0
a. Revise the section heading;
0
b. Remove, from the table in paragraph (a), ``(Class B telephone 
companies); Accounts 6211 and 6212 (Class A telephone companies)'' and 
``(Class B telephone companies); Accounts 6231 and 6232 (Class A 
telephone companies)''; and
0
c. Remove, from paragraph (b), ``equipment. Accounts'' and adding, in 
its place, ``equipment--Accounts''.
    The revision reads as follows:


Sec.  [thinsp]36.321   Central office expenses--Accounts 6210, 6220, 
and 6230.

* * * * *
0
16. Amend Sec.  36.331 by revising the section heading to read as 
follows:


Sec.  [thinsp]36.331   Information origination/termination expenses--
Account 6310.

* * * * *
0
17. Amend Sec.  36.341 by revising the section heading to read as 
follows:


Sec.  [thinsp]36.341   Cable and wire facilities expenses--Account 
6410.

* * * * *


Sec.  [thinsp]36.351   [Amended]

0
18. Amend Sec.  36.351 as follows:
0
a. Redesignate paragraph (a) as an undesignated paragraph; and
0
b. In the table:
0
i. Remove ``(Class B telephone companies); Accounts 6511 and 6512 
(Class A telephone companies)''; and
0
ii. Remove ``(Class B telephone companies); Accounts 6531, 6532, 6533, 
6534, and 6535 (Class A telephone companies)''.
0
19. Amend Sec.  36.352 by revising the section heading to read as 
follows:


Sec.  [thinsp]36.352   Other property plant and equipment expenses--
Account 6510.

* * * * *
0
20. Amend Sec.  36.353 by revising the section heading to read as 
follows:


Sec.  [thinsp]36.353   Network operations expenses--Account 6530.

* * * * *


Sec.  [thinsp]36.371   [Amended]

0
21. Amend Sec.  36.371 in the table by removing ``(Class B telephone 
companies); Accounts 6611 and 6613 (Class A telephone companies)''.
0
22. Amend Sec.  36.372 by revising the section heading to read as 
follows:


Sec.  [thinsp]36.372   Marketing--Account 6610.

* * * * *

[[Page 10822]]

Sec.  [thinsp]36.375   [Amended]

0
23. Amend Sec.  36.375 in paragraphs (b)(4) and (5), by removing 
``through (4)'' and adding, in its place, ``through (3)''.


Sec.  [thinsp]36.392   [Amended]

0
24. Amend Sec.  36.392(c) as follows:
0
a. Remove ``(Class B Telephone Companies); Accounts 6211 and 6212 
(Class A Telephone Companies)'';
0
b. Remove ``(Class B Telephone Companies); Accounts 6231 and 6232 
(Class A Telephone Companies)'';
0
c. Remove ``(Class B Telephone Companies); Accounts 6311, 6341, 6351, 
and 6362 (Class A Telephone Companies)'';
0
d. Remove ``(Class B Telephone Companies); Accounts 6411, 6421, 6422, 
6423, 6424, 6426, 6431, and 6441 (Class A Telephone Companies)'';
0
e. Remove ``(Class B Telephone Companies); Accounts 6531, 6532, 6533, 
6534, and 6535 (Class A Telephone Companies)'' and
0
f. Remove ``(Class B Telephone Companies); Accounts 6611 and 6613 
(Class A Telephone Companies)''.
0
25. Amend Sec.  36.411 as follows:
0
a. Revise the section heading;
0
b. Redesignate paragraph (a) as an undesignated paragraph
0
c. Revise the final entry in the list.
    The revisions read as follows:


Sec.  [thinsp]36.411   Operating taxes--Account 7200.

* * * * *

Provision for Deferred Operating Income Taxes

0
26. Amend Sec.  36.501 as follows:


Sec.  [thinsp]36.501   [Amended]

    Remove ``(Class B Telephone Companies); Account 3410 (Class A 
Telephone Companies)''.
0
27. Amend Sec.  36.505 as follows:
0
a. Revise the section heading;
0
b. Redesignate paragraph (a) as an undesignated paragraph.
    The revision reads as follows:


Sec.  [thinsp]36.505   Accumulated amortization--Tangible--Account 
3400.


Sec. Sec.  36.3, 36.123, 36.124(c) and (d); 36.125(h) and (i); 
36.126(b)(5) and (6); 36.126(c)(4), (e)(4), and (f)(2); 36.141(c); 
36.142(c); 36.152(d); 36.157(b); 36.191(d); 36.374(b); 36.375(b)(4); 
36.377 introductory text and (a)(1)(ix), (2)(vii), (3)(vii), (4)(vii), 
(5)(vii), and (6)(vii); 36.378(b)(1); 36.379(b)(1); 36.380(d) and (e); 
36.381(c); and 36.382(a)  [Amended]

0
28. Remove the term ``twelve-month'' and add in its place ``twelve-
month'' in:
0
a. Sec. Sec.  36.3(a) and (b);
0
b. Sec. Sec.  36.123(a)(5) and (6);
0
c. Sec. Sec.  36.124(c) and (d);
0
d. Sec. Sec.  36.125(h) and (i);
0
e. Sec.  36.126(b)(5) and (6);
0
f. Sec. Sec.  36.126(c)(4), (e)(4), and (f)(2);
0
g. Sec.  36.141(c);
0
h. Sec.  36.142(c);
0
i. Sec.  36.152(d);
0
j. Sec.  36.157(b);
0
k. Sec.  36.191(d);
0
l. Sec.  36.374(b);
0
m. Sec.  36.375(b)(4);
0
n. Sec. Sec.  36.377 introductory text and (a)(1)(ix), (2)(vii), 
(3)(vii), (4)(vii), (5)(vii), and (6)(vii);
0
o Sec.  36.378(b)(1);
0
p. Sec.  36.379(b)(1);
0
q. Sec. Sec.  36.380(d) and (e);
0
r. Sec.  36.381(c); and
0
s. Sec.  36.382(a).

[FR Doc. 2018-04563 Filed 3-12-18; 8:45 am]
 BILLING CODE 6712-01-P