Sec.  36.622   National and study area average unseparated loop costs.

   (a) National Average Unseparated Loop Cost per Working Loop. Except as
   provided in paragraph (c) of this section, this is equal to the sum of the
   Loop Costs for each study area in the country as calculated pursuant to
    Sec. 36.621(a) divided by the sum of the working loops reported in  Sec. 36.611(h)
   for each study area in the country. The national average unseparated loop
   cost per working loop shall be calculated by the National Exchange Carrier
   Association. Effective July 1, 2001, the national average unseparated loop
   cost for purposes of calculating expense adjustments for rural incumbent
   local exchange carriers, as that term is defined in  Sec. 54.5 of this chapter,
   is frozen at $240.00.

   (1) The National Average Unseparated Loop Cost per Working Loop shall be
   recalculated by the National Exchange Carrier Association to reflect the
   September, December, and March update filings.

   (2) Each new nationwide average shall be used in determining the additional
   interstate expense allocation for companies which made filings by the most
   recent filing date.

   (3) The calculation of a new national average to reflect the update filings
   shall not affect the amount of the additional interstate expense allocation
   for companies which did not make an update filing by the most recent filing
   date.

   (b) Study Area Average Unseparated Loop Cost per Working Loop. This is equal
   to the unseparated loop costs for the study area as calculated pursuant to
    Sec. 36.621(a) divided by the number of working loops reported in  Sec. 36.611(h) for
   the study area.

   (1) If a company elects to, or is required to, update the data which it has
   filed  with  the  National Exchange Carrier Association as provided in
    Sec. 36.612(a), the study area average unseparated loop cost per working loop
   and the amount of its additional interstate expense allocation shall be
   recalculated to reflect the updated data.

   (2) [Reserved]

   (c) The National Average Unseparated Loop Cost per Working Loop shall be the
   greater of:

   (1) The amount calculated pursuant to the method described in paragraph (a)
   of this section; or

   (2) Until June 30, 2001, an amount calculated to produce the maximum total
   Universal Service Fund allowable pursuant to  Sec. 36.601(c). Effective July 1,
   2001, for non-rural carriers, an amount calculated to produce the maximum
   non-rural  carrier  portion of nationwide loop cost expense adjustment
   allowable pursuant to  Sec. 36.602. Effective July 1, 2001, for rural carriers,
   an amount calculated to produce the maximum rural incumbent local exchange
   carrier  portion  of nationwide loop cost expense adjustment allowable
   pursuant to  Sec. 36.603(a).

   [ 52 FR 17229 , May 6, 1987, as amended at  56 FR 27422 , June 14, 1991;  58 FR 69242 , Dec. 30, 1993;  60 FR 65012 , Dec. 15, 1995;  61 FR 34377 , July 2, 1996;
    62 FR 32948 , June 17, 1997;  63 FR 2125 , Jan. 13, 1998;  64 FR 67430 , Dec. 1,
   1999;  66 FR 30087 , June 5, 2001;  72 FR 46919 , Aug. 22, 2007]

Calculation of Expense Adjustment—Additional Interstate Expense Allocation