FCC Web Documents citing 32.4999

as compiled by hallikainen.com/FccRules on 2012 07 01

• http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-00-364A1.doc http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-00-364A1.pdf http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-00-364A1.txt
  • harm. We also seek comment on whether it matters how the carrier values its transaction to its nonregulated affiliate because our Part 64 rules ensure that the asset is recorded as nonregulated. We seek comment on our proposal. Commenters should discuss whether removing these transactions from our affiliate transactions rules could result in potential ratepayer harm. 4. Incidental activities Section 32.4999(l) provides that revenues from minor nontariffed activities that are an outgrowth of the carrier 's regulated activities may be recorded as regulated revenues under certain conditions. This provision obviates the need to make the detailed cost allocations that would otherwise be required to remove the costs of the nonregulated activity from regulated costs. Essentially, the revenues from the activity are
• http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-01-305A1.doc http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-01-305A1.pdf http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-01-305A1.txt
  • of applying the expense limit. Moreover, although relatively low cost individually, personal computers are part of larger networks within each company and represent substantial investments. These investments should be capitalized. Accordingly, we do not revise the rules regarding personal computers. Incidental activities We adopt the proposal in the Notice to eliminate the ``treated traditionally'' requirement from incidental activities. Under section 32.4999(l) of the Commission's rules, revenues from minor nontariffed activities that are an outgrowth of the carrier's regulated activities may be recorded as regulated revenues under certain conditions. These activities, known as ``incidental activities,'' must: (1) be an outgrowth of regulated operations; (2) have been treated traditionally as regulated; (3) be a non-line-of business activity; and (4) result in revenues that,
• http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-149A1.doc http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-149A1.pdf http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-149A1.txt
  • credits-net. 32.4330 Unamortized nonoperating investment tax credits-net. 32.4340 Net noncurrent deferred operating income taxes. 32.4341 Net deferred tax liability adjustments. 32.4350 Net noncurrent deferred nonoperating income taxes. 32.4361 Deferred tax regulatory adjustments-net. 32.4370 Other jurisdictional liabilities and deferred credits-net. 32.4510 Capital stock. 32.4520 Additional paid-in capital. 32.4530 Treasury stock. 32.4540 Other capital. 32.4550 Retained earnings. Subpart D-Instructions for Revenue Accounts 32.4999 General. 32.5000 Basic local service revenue. 32.5001 Basic area revenue. 32.5040 Private line revenue. 32.5060 Other basic area revenue. 32.5081 End user revenue. 32.5082 Switched access revenue. 32.5083 Special access revenue. 32.5100 Long distance message revenue. 32.5200 Miscellaneous revenue. 32.5230 Directory revenue. 32.5280 Nonregulated operating revenue. 32.5300 Uncollectible revenue. Subpart E-Instructions for Expense Accounts 32.5999 General. 32.6110 Network support expense.
• http://www.fcc.gov/Bureaus/Common_Carrier/Notices/2000/fcc00364.doc http://www.fcc.gov/Bureaus/Common_Carrier/Notices/2000/fcc00364.txt
  • harm. We also seek comment on whether it matters how the carrier values its transaction to its nonregulated affiliate because our Part 64 rules ensure that the asset is recorded as nonregulated. We seek comment on our proposal. Commenters should discuss whether removing these transactions from our affiliate transactions rules could result in potential ratepayer harm. 4. Incidental activities Section 32.4999(l) provides that revenues from minor nontariffed activities that are an outgrowth of the carrier 's regulated activities may be recorded as regulated revenues under certain conditions. This provision obviates the need to make the detailed cost allocations that would otherwise be required to remove the costs of the nonregulated activity from regulated costs. Essentially, the revenues from the activity are
• http://www.fcc.gov/Bureaus/Common_Carrier/RAO_Letters/1995/da950703.pdf http://www.fcc.gov/Bureaus/Common_Carrier/RAO_Letters/1995/da950703.wp
  • requirements,carriersshallberequiredtohaveinternalaccountingcontrolsandacompleteaudit trailforeachsubsidiaryaccountrecord.Subsidiaryaccountingrecordsmustbereconcilablewith totalamountsreportedinthePart32accounts.Inaddition,LECsshallmaintaintheserecords untilsuchtimeastheCommissiondecidesotherwise.Theserequirementsdonotpreclude carriersfromcreatingsubaccounts,ifnecessary,tocapturedatanecessarytoprovidesubsidiary recordinformation. ConsistentwiththeCommission'srequirementsonaccountingclassificationsand reporting,carriersshallcaptureallcostsincurredfortheprovisionofvideodialtone,including thepreliminaryplanning,andresearchanddevelopmentexpensesincurredpriortothe Commission'sapprovalofSection214application.UponreceivingSection214authorization fromtheCommission,carriersmustestablishsubsidiaryaccountingrecordsandreporttheresults oftheserecordstotheCommissiononaquarterlybasis. 12Allemployeesthatincurvideodialtonecostsmustemployexistingtimereportingproceduresusingsometype offunctioncodes.Forexample,carriersthatcurrentlyutilizetimereportingtrackingmechanismsinorderto identifyregulatedandnonregulatedactivitiesofsupportfunctions,suchaslegalservices,mustcontinuetousesimilar accountingtrackingmechanismsforidentifyingvideodialtoneexpenses.Inaddition,expensesincurredorservices providedbyLECaffiliatesforLECprovisionofvideodialtoneservicemustbeidentifiedwithuniquefunctioncodes thatindicatevideodialtoneexpense. 13IntheVDTReconOrder,theCommissiondeterminedthatitwasnotnecessarytomakepermanentchanges totheCommission'sUSOAforLECprovisionofvideodialtone.TheCommission,however,requiredthatLECs offeringvideodialtoneservicecreatesubsidiaryrecordstocapturewhollydedicatedandsharedvideodialtonecosts. SeeVDTReconOrderatpara173.UndertheCommission'srules,subsidiaryrecordscategoriesaredefinedas "...segregationsofcertainregulatedcosts,expensesandrevenueswhichmustbemaintainedandaresubjectto specificreportingrequirementsofthisCommission."See47C.F.R.§32.9000. 4 Subsidiaryaccountingrecordsforinvestmentaccountsmustinclude,butshallnotbe limitedto,alltelephoneplantinserviceaccounts,associatedaccumulateddepreciation,deferred taxesandanyassociatedlandandsupportassetswhichcontaincostsrelatedtotheprovisionof videodialtoneservice.Subsidiaryaccountingrecordsforvideodialtoneinvestmentaccounts mustalsoidentifytheinvestment'slocationandwhetherthatinvestmentiswhollydedicatedto videodialtoneorsharedbetweenvideodialtoneandotherservices.LECsshallmaintain subsidiaryaccountingrecordssothatthecontentoftheserecordscanbetracedfromthe continuingpropertyrecords("CPRs")throughtheaccountingsystemtothegeneralledgerand totheequipment'sphysicallocation. Carriersshallusetrackingcodesthatallowvideodialtoneexpensetobeextractedand summarizedfromthePart32USOAexpenseaccounts.Carriersmaycreatetrackingcodesthat arecompatiblewiththeirexistinginternalaccountingsystems.Carriersmayuseeitherfield reportingcodes,jobfunctioncodes,locationcodes,oranyotheridentificationcodesthatpermits suchexpensestobeaudited. Subsidiaryaccountingrecordsforexpenseshallincludeallplant-specificoperations expense,plant-nonspecificoperationsexpense,customeroperationsexpense,andcorporate operationsexpenseaccountsthatcontainanycostsrelatedtotheprovisionofvideodialtone service.Subsidiaryaccountingrecordsforvideodialtoneshouldseparatelyidentifyrevenues fromintrastateandinterstatetariffs.14Carriersshallidentifybysubsidiaryrecordcategoryany nonregulatedvideodialtonerevenues. V. CostAllocationManualFilingRequirements LECsofferingvideodialtoneservicemustamendtheirCAMstoreflectboththeir regulatedandnonregulatedvideodialtoneserviceasfollows: LECsarerequired,pursuanttotheVDTReconOrder,toamendtheirCAMspriorto providingnonregulatedproductsorservicesrelatedtovideodialtone.15Werequirecarriersthat receiveSection214authorizationstoprovidevideodialtoneservicetoimplementthese requirementsbyrevisingSectionII(NonregulatedActivities)oftheirCAMstoincludeadetailed descriptionofproposednonregulatedvideodialtoneservicesthattheyseektoprovide. CAMrevisionsmustincludeastatementindicatingwhethernonregulatedvideodialtone serviceisprovidedthroughastand-alonevideodialtonesystem,orasystemsharedwith telephony.CarriersmustalsoestablishanewsubsectioninSectionIIoftheirCAMsthat identifiesallcostsincurredintheplanninganddevelopmentofnonregulatedactivitiesprovided inconjunctionwithvideodialtoneservice.LECsthatcurrentlyincludeenhancedservices 14CarriersshallrecordrevenuesinPart32accountsconsistentwiththecategoryofvideodialtoneserviceset forthinacarrier'stariffprovisions.See47C.F.R.§32.4999. 15VDTReconOrderat330,para.181. 5 planningintheirCAMsasanonregulatedactivityassociatedwiththeirprovisionoftelephone service,shallberequiredtoamendtheirCAMstospecificallyidentifyanyplanningassociated withtheprovisionofnonregulatedvideodialtoneservice.Inaddition,LECsshallamendtheir existing"NonregulatedServicesMatrix"--whichshowsnonregulatedproducts/servicesandthe USOAaccountsassociatedwiththesenonregulatedproducts/services--tolisteachindividual USOAaccountaffectedbytheprovisionofanynonregulatedvideodialtoneactivity. LECsmustalsoamendSectionVI(CostApportionmentTables)oftheirCAMs,sothat existingcostallocationtablesincludeapportionmentproceduresforinvestmentandexpenseused intheprovisionofregulatedandnonregulatedvideodialtoneservice.WerequireLECstojustify and/oramend,ifnecessary,theirexistingcostapportionmentmethodologyandallocatorsfortheir provisionofvideodialtoneservice.LECsthatchoosenottomodifytheircostapportionment methodologyorallocatorsforvideodialtone,mustalsoexplainwhytheirexistingmethodology orallocationfactorsarestillvalidfortheirregulated,nonregulatedandcommoncostpools.In addition,becausetheallocationfornonregulatedusageofcommonnetworkplantisdetermined byathree-yearforecastofinvestmentusage,LECsshallrevisetheirforecastusageallocatorto reflectaccuratelytheprovisionofanynonregulatedvideodialtoneserviceofferedoncommon networkplant.Moreover,carriersthatcurrentlydonotprovidenonregulatedservicesthatuse commonnetworkplant,but"reasonablyanticipate"offeringsuchservicesduringtheplant's three-yearforecastusageperiod,shallincluderevisedapportionmentproceduresforthe nonregulatedusageofnetworkplantintheSectionVI,CostApportionmentTables.16 Finally,werequireLECstoamendtheirCAMstoidentifyanyaffiliatetransactions relatedtotheirprovisionofvideodialtoneservice.LECsmustamendSectionV(Affiliate Transactions)oftheirCAMsbylistingalltransactionswithaffiliatesthatinvolvevideodialtone service.Thislistingmustcontainabriefdescriptionofthenature,termsandfrequencyofeach transaction.LECsthatcurrentlylisttransactionsinvolvingaffiliatesprovidingvideorelated servicesinexistingCAMs,mustamendsuchCAMstoindicatewhich,ifany,specific transactionsrelatetotheprovisionofvideodialtoneservice. AsrequiredbytheVDTReconOrder,LECsshallfileCAMrevisionswithinthirtydays aftertheeffectivedateoftheirSection214authorizationandatleastsixtydayspriortoproviding nonregulatedproductsorservicesrelatedtovideodialtone. VI.AccountingConsistency/UniformityIssues InreviewingvariousLECSection214applicationsforvideodialtoneservice,wehave foundcertaininconsistenciesintheaccountingclassificationofasynchronoustransfermode ("ATM")equipment.LECshavedescribedATMequipmentasprovidingthebasicconnection betweenthevariousvideoserversandvariousdestinations.SomeLECshaveprovisionally classifiedATMequipmentinAccount2212,Digitalelectronicswitching;otherLECshave 16SeeAmericanTelephone&TelegraphCompany'sPermanentCostAllocationManualfortheSeparationof RegulatedandNonregulatedCosts,4FCCRcd6930atpara.6-7(1989). 6 classifiedthesametypeofequipmentinAccount2232,Circuitequipment.Basedonour analysisofvideodialtoneATMequipmentandLECdescriptionsofthefunctionalpurposeof suchequipment,wefindthat,althoughcertaincarriershaveclassifiedATMequipmentas switches,thisequipmentdoesnotperformthefunctionsperformedbytraditionalnetwork switches.17Wefindbasedonthedatabeforeus,thatATMvideodialtoneequipmentdoesnot, atthisstageofLECvideodialtonedeployment,meetestablishedcriteriaforclassificationasa switch.Therefore,carriersshallclassifyATMequipmentascircuitequipmentandrecorditin Account2232,Circuitequipment.Ourdecisionregardingtheaccountingclassificationforvideo dialtoneATMequipmentdoesnotinanywayprecludeLECsfromdemonstratingatafuturedate anyfunctionalchangethatshouldalterthisclassification. Finally,weintendtoamendRAOLetterNo.6shortlytoincorporatevideodialtoneplant investmentwithinourexistingitemizedlistoftelecommunicationsplantinservice.18 Thisletterisissuedpursuanttoauthoritydelegatedunder§0.291oftheCommission's Rules,47C.F.R.§0.291.ApplicationsforreviewunderSection1.115oftheCommission's Rules,47C.F.R.§1.115,mustbefiledwithin30daysofthedateofthisletter.See47C.F.R. §1.4(b)(2). Ifyouhaveanyquestions,pleasecontactKennethAckermanorDanielGonzalezat(202) 418-0810. Sincerely,
• http://www.fcc.gov/wcb/armis/documents/aad_92_42_moorder_da_93_765.pdf
  • order. a. Non-telecommunications 17. Several LECs suggest that the non-telecommunica- tions cost pool is unnecessary and should be eliminated. They argue that costs of buildings used for non-telecom- munications should either be treated as incidental activities and assigned to regulated2!! or should be removed from the Telecommunications Plant Accounts.27 We find. however, that this cost pool is necessary. Under Section 32.4999(lt8 there is a limit on activities that can be treated as inciden- tal, and under Section 32.23(c)29 costs associated with ac- tivities that involve the joint use of assets must be accounted for in the regulated accounts. Thus, the non- telecommunications cost pool is needed for costs that do not qualify as incidental and must be accounted for in the