Goto Section: 65.306 | 65.500 | Table of Contents
FCC 65.450
Revised as of October 1, 2008
Goto Year:2007 |
2009
Sec. 65.450 Net income.
(a) Net income shall consist of all revenues derived from the provision of
interstate telecommunications services regulated by this Commission less
expenses recognized by the Commission as necessary to the provision of these
services. The calculation of expenses entering into the determination of net
income shall include the interstate portion of plant specific operations
(Accounts 6110–6441), plant nonspecific operations (Accounts 6510–6565),
customer operations (Accounts 6610–6623), corporate operations (Accounts
6720–6790), other operating income and expense (Account 7100), and operating
taxes (Accounts 7200–7250), except to the extent this Commission
specifically provides to the contrary.
(b) Gains and losses related to the disposition of plant in service items,
shall be handled as follows:
(1) Gains related to property sold to others and leased back under capital
leases for use in telecommunications services shall be recorded in Account
4300, Other long-term liabilities and deferred credits, and credited to
Account 6563, Amortization expense—tangible, over the amortization period
established for the capital lease;
(2) Gains or losses related to the disposition of land and other
nondepreciable items recorded in Account 7100 (Other operating income and
expense) shall be included in net income for ratemaking purposes, but
adjusted to reflect the relative amount of time such property was used in
regulated operations and included in the rate base; and
(3) Proceeds related to the disposition of property depreciated on a group
basis and used jointly in regulated and nonregulated activities, including
sale-leaseback arrangements for property depreciated on a group basis, shall
be credited to the related reserves and attributed to regulated and
nonregulated in proportion to the accumulated regulated and nonregulated
depreciation for that group.
(c) Gains or losses related to the disposition of property that was never
included in the rate base shall not be considered for ratemaking purposes.
(d) Except for the allowance for funds used during construction, reasonable
charitable deductions and interest related to customer deposits, the amounts
recorded as nonoperating income and expenses and taxes (Accounts 7300 and
7400) and interest and related items (Account 7500) and extraordinary items
(Account 7600) shall not be included unless this Commission specifically
determines that particular items recorded in those accounts shall be
included.
[ 53 FR 1029 , Jan. 15, 1988, as amended at 60 FR 12139 , Mar. 6, 1995; 67 FR 5702 , Feb. 6, 2002; 69 FR 53652 , Sept. 2, 2004]
Subpart D—Interexchange Carriers
Goto Section: 65.306 | 65.500
Goto Year: 2007 |
2009
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