§ 54.1301   General.

   (a)  This subpart addresses support for loop-related costs included in
   § 54.1308. The expense adjustment calculated pursuant to this subpart M shall
   be added to interstate expenses and deducted from state expenses after
   expenses and taxes have been apportioned pursuant to subpart D of part 36 of
   this chapter. Beginning January 1, 2012, this subpart will only apply to
   incumbent local exchange carriers that are rate-of-return carriers not
   affiliated,  as “affiliated companies” are defined in § 32.9000 of this
   chapter, with price cap local exchange carriers. Rate-of-return carriers and
   price  cap  local  exchange carriers are defined pursuant to § 54.5 and
   § 61.3(bb) of this chapter, respectively.

   (b) The expense adjustment will be computed on the basis of data for a
   preceding calendar year which may be updated at the option of the carrier
   pursuant to § 54.1306(a).

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