§ 54.1308   Study Area Total Unseparated Loop Cost.

   (a) For the purpose of calculating the expense adjustment, the study
   area total unseparated loop cost equals the sum of the following,
   however, subject to the limitations set forth in § 54.303:

   (1) Return component for net unseparated Exchange Line C&WF subcategory
   1.3 investment and Exchange Line CO Circuit Equipment Category 4.13
   investment. This amount is calculated by deducting the accumulated
   depreciation and noncurrent deferred Federal income taxes attributable
   to C&WF Subcategory 1.3 investment and Exchange Line Category 4.13
   circuit investment reported pursuant to § 54.1305(b) from the gross
   investment in Exchange Line C&WF Subcategory 1.3 and CO Category 4.13
   reported pursuant to § 54.1305(a) to obtain the net unseparated C&WF
   Subcategory 1.3 investment, and CO Category 4.13 investment. The net
   unseparated C&WF Subcategory 1.3 investment and CO Category 4.13
   investment is multiplied by the study area's authorized interstate rate
   of return.

   (2) Depreciation expense attributable to C&WF Subcategory 1.3
   investment, and CO Category 4.13 investment as reported in § 54.1305(c).

   (3) Maintenance expense attributable to C&WF Subcategory 1.3
   investment, and CO Category 4.13 investment as reported in § 54.1305(d).

   (4) Corporate Operations Expenses, Operating Taxes and the benefits and
   rent portions of operating expenses, as reported in § 54.1305(e)
   attributable to investment in C&WF Category 1.3 and COE Category 4.13.
   This amount is calculated by multiplying the total amount of these
   expenses and taxes by the ratio of the unseparated gross exchange plant
   investment in C&WF Category 1.3 and COE Category 4.13, as reported in
   § 54.1305(a), to the unseparated gross telecommunications plant
   investment, as reported in § 54.1305(f). Total Corporate Operations
   Expense for purposes of calculating high-cost loop support payments
   beginning January 1, 2012 shall be limited to the lesser of
   § 54.1308(a)(4)(i) or (ii).

   (i) The actual average monthly per-loop Corporate Operations Expense;
   or

   (ii) A monthly per-loop amount computed according to paragraphs
   (a)(4)(ii)(A) through (D) of this section. To the extent that some
   carriers' corporate operations expenses are disallowed pursuant to
   these limitations, the national average unseparated cost per loop shall
   be adjusted accordingly. For the purposes of this paragraph (a)(4)(ii),
   “total eligible lines” refers to working loops as defined by this
   subpart and consumer broadband-only loops, as defined in § 54.901(g).

   (A) For study areas with 6,000 or fewer total eligible lines, the
   monthly per-loop amount shall be $42.337 − (.00328 × the number of
   total eligible lines), or, $63,000/the number of total eligible lines,
   whichever is greater;

   (B) For study areas with more than 6,000 but fewer than 17,887 total
   eligible lines, the monthly per-loop amount shall be $3.007 +
   (117,990/the number of total eligible lines); and

   (C) For study areas with 17,887 or more total eligible lines, the
   monthly per-loop amount shall be $9.562.

   (D) Beginning January 1, 2013, the monthly per-loop amount computed
   according to paragraphs (a)(4)(ii)(A), (a)(4)(ii)(B), and (a)(4)(ii)(C)
   of this section shall be adjusted each year to reflect the annual
   percentage change in the United States Department of Commerce's Gross
   Domestic Product-Chained Price Index (GDP-CPI).

   (b) [Reserved]

   [ 79 FR 39190 , July 9, 2014, as amended at  81 FR 24344 , Apr. 25, 2016;
    83 FR 18964 , May 1, 2018]

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