Sec.  36.621   Study area total unseparated loop cost.

   (a) For the purpose of calculating the expense adjustment, the study area
   total unseparated loop cost equals the sum of the following:

   (1) Return component for net unseparated Exchange Line C&WF subcategory 1.3
   investment and Exchange Line CO Circuit Equipment Category 4.13 investment.
   This amount is calculated by deducting the accumulated depreciation and
   noncurrent deferred Federal income taxes attributable to C&WF subcategory
   1.3 investment and Exchange Line Category 4.13 circuit investment reported
   pursuant to  Sec. 36.611(b) from the gross investment in Exchange Line C&WF
   subcategory 1.3 and CO Category 4.13 reported pursuant to  Sec. 36.611(a) to
   obtain the net unseparated C&WF subcategory 1.3 investment, and CO Category
   4.13 investment. The net unseparated C&WF subcategory 1.3 investment and CO
   Category  4.13 investment is multiplied by the study area's authorized
   interstate rate of return.

   (2) Depreciation expense attributable to C&WF subcategory 1.3 investment,
   and CO Category 4.13 investment as reported in  Sec. 36.611(c).

   (3) Maintenance expense attributable to C&WF subcategory 1.3 investment, and
   CO Category 4.13 investment as reported in  Sec. 36.611(d).

   (4) Corporate Operations Expenses, Operating Taxes and the benefits and rent
   portions of operating expenses, as reported in  Sec. 36.611(e) attributable to
   investment  in C&WF Category 1.3 and COE Category 4.13. This amount is
   calculated by multiplying the total amount of these expenses and taxes by
   the  ratio  of the unseparated gross exchange plant investment in C&WF
   Category  1.3 and COE Category 4.13, as reported in  Sec. 36.611(a), to the
   unseparated  gross telecommunications plant investment, as reported in
    Sec. 36.611(f). Total Corporate Operations Expense, for purposes of calculating
   universal service support payments beginning July 1, 2001, shall be limited
   to the lesser of:

   (i) The actual average monthly per-loop Corporate Operations Expense; or

   (ii)  A  monthly  per-loop  amount  computed  according  to paragraphs
   (a)(4)(ii)(A), (a)(4)(ii)(B), (a)(4)(ii)(C), and (a)(4)(ii)(D) of this
   section. To the extent that some carriers' corporate operations expenses are
   disallowed pursuant to these limitations, the national average unseparated
   cost per loop shall be adjusted accordingly.

   (A) For study areas with 6,000 or fewer working loops the amount monthly per
   working loop shall be $33.30853−(.00246 × the number of working loops), or,
   $50,000 ÷ the number of working loops, whichever is greater;

   (B) For study areas with more than 6,000 but fewer than 18,006 working
   loops, the monthly amount per working loop shall be $3.83195 + (88,429.20 ÷
   the number of working loops); and

   (C) For study areas with 18,006 or more working loops, the monthly amount
   per working loop shall be $8.74472.

   (D)  Beginning  January  1, 2002, the monthly per-loop amount computed
   according to paragraphs (a)(4)(ii)(A), (a)(4)(ii)(B), and (a)(4)(ii)(C) of
   this section shall be adjusted each year to reflect the annual percentage
   change  in  the  United States Department of Commerce's Gross Domestic
   Product-Chained Price Index (GDP-CPI).

   (b) [Reserved]

   [ 52 FR 17229 , May 6, 1987, as amended at  56 FR 27422 , June 14, 1991;  62 FR 32948 , June 17, 1997;  62 FR 40748 , July 30, 1997;  63 FR 2124 , Jan. 13, 1998;
    66 FR 30086 , June 5, 2001]