Goto Section: 36.1 | 36.3 | Table of Contents
FCC 36.2
Revised as of October 1, 2007
Goto Year:2006 |
2008
Sec. 36.2 Fundamental principles underlying procedures.
(a) The following general principles underlie the procedures outlined in
this part:
(1) Separations are intended to apportion costs among categories or
jurisdictions by actual use or by direct assignment.
(2) Separations are made on the “actual use” basis, which gives
consideration to relative occupancy and relative time measurements.
(3) In the development of “actual use” measurements, measurements of use are
(i) determined for telecommunications plant or for work performed by
operating forces on a unit basis (e.g., conversation-minute-kilometers per
message, weighted standard work seconds per call) in studies of traffic
handled or work performed during a representative period for all traffic and
(ii) applied to overall traffic volumes, i.e., 24-hour rather than busy-hour
volumes.
(b) Underlying the procedures included in this manual for the separation of
plant costs is an over-all concept which may be described as follows:
(1) Telecommunications plant, in general, is segregable into two broad
classifications, namely, (i) interexchange plant, which is plant used
primarily to furnish toll services, and (ii) exchange plant, which is plant
used primarily to furnish local services.
(2) Within the interexchange classification, there are three broad types of
plant, i.e., operator systems, switching plant, and trunk transmission
equipment. Within the exchange classification there are four board types of
plant, i.e., operator systems, switching plant, truck equipment and
subscriber plant. Subscriber plant comprises lines to the subscriber.
(3) In general, the basis for apportioning telecommunications plant used
jointly for state and interstate operations are:
(i) Operator work time expressed in weighted standard work seconds is the
basis for measuring the use of operator systems.
(ii) Holding-time-minutes is the basis for measuring the use of local and
toll switching plant.
(iii) Conversation-minute-kilometers or conversation minutes is the basis
for measuring the use of interexchange circuit plant and holding-time
minutes is the basis for measuring the use of exchange trunk plant. While
the use of holding-time-minute-kilometers is the basic fundamental
allocation factor for interexchange circuit plant and exchange trunk plant,
the use of conversation-minute-kilometers or conversation-minutes for the
allocation of interexchange circuit plant and holding-time minutes for the
allocation of exchange trunk plant are considered practical approximations
for separations between state and interstate operations when related to the
broad types of plant classifications used herein.
(iv) Message telecommunications subscriber plant shall be apportioned on the
basis of a Gross Allocator which assigns 25 percent to the interstate
jurisdiction and 75 percent to the state jurisdiction.
(c) Property rented to affiliates, if not substantial in amount, is included
as used property of the owning company with the associated revenues and
expenses treated consistently: Also such property rented from affiliates is
not included with the used property of the company making the separations;
the rent paid is included in its expenses. If substantial in amount, the
following treatment is applied:
(1) In the case of property rented to affiliates, the property and related
expenses and rent revenues are excluded from the telephone operations of the
owning company, and
(2) In the case of property rented from affiliates, the property and related
expenses are included with, and the rent expenses are excluded from, the
telephone operations of the company making the separation.
(d) Property rented to or from non-affiliates is usually to be included as
used property of the owning company with the associated revenues and
expenses treated consistently. In the event the amount is substantial, the
property involved and the revenues and expenses associated therewith may be
excluded from or included in the telecommunications operations of the
company. When required, the cost of property rented to or from
non-affiliates is determined using procedures that are consistent with the
procedures for the allocation of costs among the operations.
(e) Costs associated with services or plant billed to another company which
have once been separated under procedures consistent with general principles
set forth in this part, and are thus identifiable as entirely interstate or
State in nature, shall be directly assigned to the appropriate operation and
jurisdiction.
[ 52 FR 17229 , May 6, 1987, as amended at 58 FR 44905 , Aug. 25, 1993; 71 FR 65745 , Nov. 9, 2006]
Goto Section: 36.1 | 36.3
Goto Year: 2006 |
2008
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