§  36.154   Exchange Line Cable and Wire Facilities (C&WF)--Category
1--apportionment procedures.

   (a) Exchange Line C&WF--Category 1. The first step in apportioning the
   cost of exchange line cable and wire facilities among the operations is
   the determination of an average cost per working loop. This average
   cost per working loop is determined by dividing the total cost of
   exchange line cable and wire Category 1 in the study area by the sum of
   the working loops described in subcategories listed below. The
   subcategories are:

   Subcategory 1.1--State Private Lines and State WATS Lines. This
   subcategory shall include all private lines and WATS lines carrying
   exclusively state traffic as well as private lines and WATS lines
   carrying both state and interstate traffic if the interstate traffic on
   the line involved constitutes ten percent or less of the total traffic
   on the line.

   Subcategory 1.2--Interstate private lines and interstate WATS lines.
   This subcategory shall include all private lines and WATS lines that
   carry exclusively interstate traffic as well as private lines and WATS
   lines carrying both state and interstate traffic if the interstate
   traffic on the line involved constitutes more than ten percent of the
   total traffic on the line.

   Subcategory 1.3--Subscriber or common lines that are jointly used for
   local exchange service and exchange access for state and interstate
   interexchange services.

   (b) The costs assigned to subcategories 1.1 and 1.2 shall be directly
   assigned to the appropriate jurisdiction.

   (c) Effective January 1, 1986, 25 percent of the costs assigned to
   subcategory 1.3 shall be allocated to the interstate jurisdiction.

   (d)-(f) [Reserved]

   (g) Effective July 1, 2001, through December 31, 2024, all study areas
   shall apportion Subcategory 1.3 Exchange Line C&WF among the
   jurisdictions as specified in paragraph (c) of this section. Direct
   assignment of subcategory Categories 1.1 and 1.2 Exchange Line C&WF to
   the jurisdictions shall be updated annually as specified in paragraph
   (b) of this section.

   [ 52 FR 17229 , May 6, 1987, as amended at  53 FR 33012 , Aug. 29, 1988;  54 FR 31033 , July 26, 1989;  66 FR 33206 , June 21, 2001;  67 FR 17014 , Apr.
   9, 2002;  71 FR 65746 , Nov. 9, 2006;  75 FR 30301 , June 1, 2010;  76 FR 30841 , May 27, 2011;  79 FR 36237 , June 26, 2014;  83 FR 63585 , Dec. 11,
   2018]