§  36.603   Calculation of rural incumbent local exchange carrier portion of
nationwide loop cost expense adjustment.

   (a) Effective July 1, 2001, the rural incumbent local exchange carrier
   portion of the annual nationwide loop cost expense adjustment will be
   recomputed by the fund administrator as if the indexed cap calculated
   pursuant to § 36.601(c) and the corporate operations expense limitation
   calculated pursuant to § 36.621 had not been in effect for the calendar
   year 2000. For the period July 1, 2001, to December 31, 2001, the
   annualized amount of the rural incumbent local exchange carrier portion
   of the nationwide loop cost expense adjustment calculated pursuant to
   this subpart F shall not exceed the non-capped amount of the total
   rural incumbent local exchange carrier loop cost expense adjustment for
   the calendar year 2000, multiplied times one plus the Rural Growth
   Factor calculated pursuant to § 36.604. For the period January 1, 2002,
   to December 31, 2002, the annual amount of the rural incumbent local
   exchange carrier portion of the nationwide loop cost expense adjustment
   calculated pursuant to this subpart F shall not exceed the non-capped
   amount of the total rural incumbent local exchange carrier loop cost
   expense adjustment for calendar year 2000, multiplied times one plus
   the Rural Growth Factor for 2001, which then shall be multiplied times
   one plus the Rural Growth Factor for 2002. Beginning January 1, 2003,
   the annual amount of the rural incumbent local exchange carrier portion
   of the nationwide loop cost expense adjustment calculated pursuant to
   this subpart F shall not exceed the amount of the total rural incumbent
   local exchange carrier loop cost expense adjustment for the immediately
   preceding calendar year, multiplied times one plus the Rural Growth
   Factor calculated pursuant to § 36.604.

   (b) The annual rural incumbent local exchange carrier portion of the
   nationwide loop cost expense adjustment shall be reduced to reflect the
   transfer of rural incumbent local exchange carrier access lines that
   are eligible for expense adjustments pursuant to § 36.631. The
   reduction shall equal the amount of the § 36.631 expense adjustment
   available to the transferred access lines at the time of the transfer
   and shall be effective in the next calendar quarter after the access
   lines are transferred.

   (c) Safety net additive support calculated pursuant to § 36.605, and
   transferred high-cost support and safety valve support calculated
   pursuant to § 54.305 of this chapter shall not be included in the rural
   incumbent local exchange carrier portion of the annual nationwide loop
   cost expense adjustment.

   [ 66 FR 30085 , June 5, 2001, as amended at  67 FR 44083 , July 1, 2002]