Sec. 36.622  National and study area average unseparated loop costs.

    (a) National Average Unseparated Loop Cost per Working Loop. Except 
as provided in paragraph (c) of this section, this is equal to the sum 
of the Loop Costs for each study area in the country as calculated 
pursuant to Sec. 36.621(a) divided by the sum of the working loops 
reported in Sec. 36.611(a)(8) for each study area in the country. The 
national average unseparated loop cost per working loop shall be 
calculated by the National Exchange Carrier Association.
    (1) The National Average Unseparated Loop Cost per Working Loop 
shall be recalculated by the National Exchange Carrier Association to 
reflect the optional September, December and March update filings.
    (2) Each new nationwide average shall be used in determining the 
additional interstate expense allocation for companies which made 
filings by the most recent filing date.
    (3) The calculation of a new national average to reflect the update 
filings shall not affect the amount of the additional interstate expense 
allocation for companies which did not make an update filing by the most 
recent filing date.
    (b) Study Area Average Unseparated Loop Cost per Working Loop. This 
is equal to the unseparated loop costs for the study area as calculated 
pursuant to Sec. 36.621(a) divided by the number of working loops 
reported in Sec. 36.611(a)(8) for the study area.
    (1) If a company elects to update the data which it has filed with 
the National Exchange Carrier Association as provided in Sec. 36.612(a), 
the study area average unseparated loop cost per working loop and the 
amount of its additional interstate expense allocation shall be 
recalculated to reflect the updated data.
    (2) [Reserved]
    (c) The National Average Unseparated Loop Cost per Working Loop 
shall be the greater of:
    (1) The amount calculated pursuant to the method described in 
paragraph (a) of this section; or
    (2) An amount calculated to produce the maximum total Universal 
Service Fund allowable pursuant to Sec. 36.601(c).
    (d) Beginning January 1, 2000, the National Average Unseparated Loop 
Cost per Working Loop shall be the greater of:
    (1) The 1997 national-average unseparated loop cost per working loop 
plus an annual inflation adjustment. The annual inflation adjustment 
shall be based on the Gross Domestic Product Chained Price Index (GDP-
CPI) of the year which the loop costs are reported pursuant to 
Sec. 36.611. As an example, the inflation-adjusted nationwide average 
loop cost for the year 2000 shall be calculated in the following manner:

1998 GDP-CPI 1997 GDP-CPI + 1997 nationwide average loop cost = 
2000 inflation-adjusted nationwide average loop cost; or


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    (2) An amount calculated to produce the maximum total Universal 
Service Fund allowable pursuant to Sec. 36.601(c).
[52 1997 FR 17229 , May 6, 1987, as amended at  56 FR 27422 , June 14, 1991;  58 FR 69242 , Dec. 30, 1993;  60 FR 65012 , Dec. 15, 1995;  61 FR 34377 , July 
2, 1996;  62 FR 32948 , June 17, 1997]

    Calculation of Expense Adjustment--Additional Interstate Expense 
                               Allocation