Goto Section: 43.41 | 43.51 | Table of Contents
Revised as of
Goto Year:1996 |
Sec. 43.43 Reports of proposed changes in depreciation rates.
(a) Each communication common carrier with annual operating expenses
that equal or exceed the indexed revenue threshold, as defined in
Sec. 32.9000, and that has been found by this Commission to be a
dominant carrier with respect to any communications service shall,
before making any changes in the depreciation rates applicable to its
operated plant, file with the Commission a report furnishing the data
described in the subsequent paragraphs of this section, and also comply
with the other requirements thereof.
(b) Each such report shall contain the following:
(1) A schedule showing for each class and subclass of plant (whether
or not the depreciation rate is proposed to be changed) an appropriate
designation therefor, the depreciation rate currently in effect, the
proposed rate, and the service-life and net-salvage estimates underlying
both the current and proposed depreciation rates;
(2) An additional schedule showing for each class and subclass, as
well as the totals for all depreciable plant, (i) the book cost of plant
at the most recent date available, (ii) the estimated amount of
depreciation accruals determined by applying the currently effective
rate to the amount of such book cost, (iii) the estimated amount of
depreciation accruals determined by applying the rate proposed to be
used to the amount of such book cost, and (iv) the difference between
the amounts determined in paragraphs (b)(2) (ii) and (iii) of this
(3) A statement giving the reasons for the proposed change in each
(4) A statement describing the method or methods employed in the
development of the service-life and salvage estimates underlying each
proposed change in a depreciation rate; and
(5) The date as of which the revised rates are proposed to be made
effective in the accounts.
(c) Except as specified in paragraphs (c)(1) and (c)(2) of this
section, when the change in the depreciation rate proposed for any class
or subclass of plant (other than one occasioned solely by a shift in the
relative investment in the several subclasses of the class of plant)
amounts to twenty percent (20%) or more of the rate currently applied
thereto, or when the proposed change will produce an increase or
decrease of one percent (1%) or more of the aggregate depreciation
charges for all depreciable plant (based on the amounts determined in
compliance with paragraph (b)(2) of this section) the carrier shall
supplement the data required by paragraph (b) of this section with
copies of the underlying studies, including calculations and charts,
developed by the carrier to support service-life and net-salvage
estimates. If a carrier must submit data of a repetitive nature to
comply with this requirement, the carrier need only submit a fully
illustrative portion thereof.
(1) A Local Exchange Carrier regulated under price caps, pursuant to
Secs. 61.41 through 61.49 of this chapter, is not required to submit the
supplemental information described in paragraph (c) introductory text of
this section for a specific account if: The carrier's currently
prescribed depreciation rate for the specific account is derived from
basic factors that fall within the basic factor ranges established for
that same account; and the carrier's proposed depreciation rate for the
specific account would also be derived from basic factors that fall
within the basic factor ranges for the same account.
(2) Interexchange carriers regulated under price caps, pursuant to
Secs. 61.41 through 61.49 of this chapter, are exempted from submitting
the supplemental information as described in paragraph (c) introductory
text. They shall instead submit: Generation data, a summary of basic
factors underlying proposed rates by account and a short narrative
supporting those basic factors, including: Company plans of forecasted
retirements and additions; and
recent annual retirements, salvage and cost of removal.
(d) Each report shall be filed in duplicate and the original shall
be signed by the responsible official to whom correspondence related
thereto should be addressed.
(e) Unless otherwise directed or approved by the Commission, the
following shall be observed: Proposed changes in depreciation rates
shall be filed at least ninety (90) days prior to the last day of the
month with respect to which the revised rates are first to be applied in
the accounts (e.g., if the new rates are to be first applied in the
depreciation accounts for September, they must be filed on or before
July 1); and such rates may be made retroactive to a date not prior to
the beginning of the year in which the filing is made: Provided,
however, That in no event shall a carrier for which the Commission has
prescribed depreciation rates make any changes in such rates unless the
changes are prescribed by the Commission.
(f) Any changes in depreciation rates that are made under the
provisions of paragraph (e) of this section shall not be construed as
having been approved by the Commission unless the carrier has been
specifically so informed.
[ 28 FR 13214 , Dec. 5, 1963, as amended at 30 FR 3223 , Mar. 9, 1965; 53 FR 49987 , Dec. 13, 1988; 58 FR 58790 , Nov. 4, 1993; 61 FR 50246 , Sept.
25, 1996; 62 FR 39779 , July 24, 1997]
Goto Section: 43.41 | 43.51
Goto Year: 1996 |
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