Sec.  36.421   Equal access expenses.

   (a) Equal access expenses include only initial incremental pre-subscription
   costs and other initial incremental expenditures related directly to the
   provision  of  equal access, that would not be required to upgrade the
   capabilities of the office involved absent the provision of equal access.
   Equal  access expenses are limited to such expenditures for converting
   central offices that serve competitive interexchange carriers or where there
   has been a bona fide request for conversion to equal access.

   (b) Equal access expenses are apportioned between the jurisdictions by first
   segregating them from all other expenses in the primary accounts and then
   allocating them on the same basis as equal access investment.

Subpart E—Reserves and Deferrals