Sec.  36.154   Exchange Line Cable and Wire Facilities (C&WF)—Category
1—apportionment procedures.

   (a) Exchange Line C&WF—Category 1. The first step in apportioning the cost
   of exchange line cable and wire facilities among the operations is the
   determination of an average cost per working loop. This average cost per
   working loop is determined by dividing the total cost of exchange line cable
   and  wire Category 1 in the study area by the sum of the working loops
   described in subcategories listed below. The subcategories are:

   Subcategory 1.1—State Private Lines and State WATS Lines. This subcategory
   shall include all private lines and WATS lines carrying exclusively state
   traffic as well as private lines and WATS lines carrying both state and
   interstate  traffic  if  the  interstate  traffic on the line involved
   constitutes ten percent or less of the total traffic on the line.

   Subcategory 1.2—Interstate private lines and interstate WATS lines. This
   subcategory  shall include all private lines and WATS lines that carry
   exclusively interstate traffic as well as private lines and WATS lines
   carrying both state and interstate traffic if the interstate traffic on the
   line involved constitutes more than ten percent of the total traffic on the
   line.

   Subcategory 1.3—Subscriber or common lines that are jointly used for local
   exchange service and exchange access for state and interstate interexchange
   services.

   (b)  The costs assigned to subcategories 1.1 and 1.2 shall be directly
   assigned to the appropriate jurisdication.

   (c)  Effective  January  1,  1986, 25 percent of the costs assigned to
   subcategory 1.3 shall be allocated to the interstate jurisdiction.

   (d)–(f) [Reserved]

   (g) Effective July 1, 2001, through June 30, 2006, all study areas shall
   apportion Subcategory 1.3 Exchange Line C&WF among the jurisdictions as
   specified in  Sec. 36.154(c). Direct assignment of subcategory Categories 1.1 and
   1.2 Exchange Line C&WF to the jurisdictions shall be updated annually as
   specified in  Sec. 36.154(b).

   [ 52 FR 17229 , May 6, 1987, as amended at  53 FR 33012 , Aug. 29, 1988;  54 FR 31033 , July 26, 1989;  66 FR 33206 , June 21, 2001;  67 FR 17014 , Apr. 9, 2002;
    71 FR 65746 , Nov. 9, 2006]