§ 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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