Sec. 32.11 of this chapter, except as provided in paragraph (d) of this 
section, avoided retail costs shall:
    (1) Include, as direct costs, the costs recorded in USOA accounts 
6611 (product management), 6612 (sales), 6613 (product advertising), 
6621 (call completion services), 6622 (number services), and 6623 
(customer services) (Secs. 32.6611, 32.6612, 32.6613, 32.6621, 32.6622, 
and 32.6623 of this chapter);
    (2) Include, as indirect costs, a portion of the costs recorded in 
USOA accounts 6121-6124 (general support expenses), 6711, 6712, 6721-
6728 (corporate operations expenses), and 5301 (telecommunications 
uncollectibles) (Secs. 32.6121-32.6124, 32.6711, 32.6712, 32.6721-
32.6728, and 32.5301 of this chapter); and
    (3) Not include plant-specific expenses and plant non-specific 
expenses, other than general support expenses (Secs. 32.6110-32.6116, 
32.6210-32.6565 of this chapter).
    (d) Costs included in accounts 6611-6613 and 6621-6623 described in 
paragraph (c) of this section (Secs. 32.6611-32.6613 and 32.6621-32.6623 
of this chapter) may be included in wholesale rates only to the extent 
that the incumbent LEC proves to a state commission that specific costs 
in these accounts will be incurred and are not avoidable with respect to 
services sold at wholesale, or that specific costs in these accounts are 
not included in the retail prices of resold services. Costs included in 
accounts 6110-6116 and 6210-6565 described in paragraph (c) of this 
section (Secs. 32.6110-32.6116, 32.6210-32.6565 of this chapter) may be 
treated as avoided retail costs, and excluded from wholesale rates, only 
to the extent that a party proves to a state commission that specific 
costs in these accounts can reasonably be avoided when an incumbent LEC 
provides a telecommunications service for resale to a requesting 
carrier.
    (e) For incumbent LECs that are designated as Class B companies 
under Sec. 32.11 of this chapter and that record information in summary 
accounts instead of specific USOA accounts, the entire relevant summary 
accounts may be used in lieu of the specific USOA accounts listed in 
paragraphs (c) and (d) of this section.