capital calculations were required to be carried out to the eighth decimal place. We stated that this degree of specificity was unnecessary and concluded that cost of capital calculations need only be carried out to two decimal places. Legal Basis: 47 U.S.C. 151, 154, 201-205, 218-220, 403. Section Number and Title: 65.305 Calculation of the weighted average cost of capital. 65.306 Calculation accuracy. SUBPART F -- MAXIMUM ALLOWABLE RATES OF RETURN Brief Description: This rule establishes that the maximum allowable rate of return for rates filed by LECs subject to 61.50 shall be determined by adding a fixed increment of one and one-half percent to the carriers prescribed rate of return. Need: In designing an optional incentive-based regulatory system for the
capital calculations were required to be carried out to the eighth decimal place. We stated that this degree of specificity was unnecessary and concluded that cost of capital calculations need only be carried out to two decimal places. Legal Basis: 47 U.S.C. 151, 154, 201-205, 218-220, 403. Section Number and Title: 65.305 Calculation of the weighted average cost of capital. 65.306 Calculation accuracy. SUBPART F -- MAXIMUM ALLOWABLE RATES OF RETURN Brief Description: This rule establishes that the maximum allowable rate of return for rates filed by LECs subject to 61.50 shall be determined by adding a fixed increment of one and one-half percent to the carriers prescribed rate of return. Need: In designing an optional incentive-based regulatory system for the