§ 54.1302   Calculation of incumbent local exchange carrier portion of
nationwide loop cost expense adjustment for rate-of-return carriers.

   (a) Beginning January 1, 2013, and each calendar year thereafter, the
   total annual amount of the incumbent local exchange carrier portion of
   the nationwide loop cost expense adjustment shall not exceed the amount
   for the immediately preceding calendar year, multiplied times one plus
   the Rural Growth Factor calculated pursuant to § 54.1303.

   (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 § 54.1310. The
   reduction shall equal the amount of the § 54.1310 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 § 54.1304, and
   transferred high-cost support and safety valve support calculated
   pursuant to § 54.305 of this part shall not be included in the rural
   incumbent local exchange carrier portion of the annual nationwide loop
   cost expense adjustment.

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