Goto Section: 43.41 | 43.51 | Table of Contents

FCC 43.43
Revised as of
Goto Year:1996 | 1998
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

[[Page 12]]

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 | 1998
CiteFind - See documents on FCC website that cite this rule

Want to support this service?

Report errors in this rule. Since these rules are converted to HTML by machine, it's possible errors have been made. Please help us improve these rules by clicking the Report FCC Rule Errors link to report an error.
Helping make public information public