Sec.  65.700   Determining the maximum allowable rate of return.

   (a) The maximum allowable rate of return for any exchange carrier's earnings
   on  any  access service category shall be determined by adding a fixed
   increment of four-tenths of one percent of the exchange carrier prescribed
   rate of return.

   (b) The maximum allowable rate of return for any exchange carrier's overall
   interstate earnings for all access service categories shall be determined by
   adding a fixed increment of one-quarter of one percent to the exchange
   carrier prescribed rate of return.

   (c) The maximum allowable rate of return for rates filed by local exchange
   carrier subject to  Sec. 61.50 of this chapter, shall be determined by adding a
   fixed increment of one and one-half percent to the carriers prescribed rate
   of return.

   [ 51 FR 11034 , Apr. 1, 1986, as amended at  58 FR 36149 , July 6, 1993;  60 FR 28546 , June 1, 1995]