§  36.377   Category 1--Local business office expense.

   (a) The expense in this category for the area under study is first
   segregated on the basis of an analysis of job functions into the
   following subcategories: End user service order processing; end user
   payment and collection; end user billing inquiry; interexchange carrier
   service order processing; interexchange carrier payment and collection;
   interexchange carrier billing inquiry; and coin collection and
   administration. Effective July 1, 2001, through December 31, 2024,
   study areas subject to price cap regulation, pursuant to § 61.41 of this
   chapter, shall assign the balance of Account 6620-Services to the
   subcategories, as specified in this paragraph (a), based on the
   relative percentage assignment of the balance of Account 6620 to these
   categories/subcategories during the twelve-month period ending December
   31, 2000.

   (1) End-user service order processing includes expenses related to the
   receipt and processing of end users' orders for service and inquiries
   concerning service. This subcategory does not include any service order
   processing expenses for services provided to the interexchange
   carriers. End user service order processing expenses are first
   segregated into the following subcategories based on the relative
   number of actual contacts which are weighted, if appropriate, to
   reflect differences in the average work time per contact: Local service
   order processing; presubscription; directory advertising; State private
   line and special access; interstate private line and special access;
   other State message toll including WATS; other interstate message toll
   including WATS.

   (i) Local service order processing expense (primarily local telephone
   service orders) is assigned to the State jurisdiction.

   (ii) Presubscription service order processing expense is assigned to
   the interstate jurisdiction.

   (iii) Directory advertising service order processing expense is
   assigned to the State jurisdiction.

   (iv) State private line and special access service order processing
   expense is assigned to the State jurisdiction.

   (v) Interstate private line and special access service order processing
   expense is assigned to the interstate jurisdiction.

   (vi) Other State message toll including WATS service order processing
   expense is assigned to the State jurisdiction.

   (vii) Other Interstate message toll including WATS service order
   processing expense is assigned to the interstate jurisdiction.

   (viii) [Reserved]

   (ix) Effective July 1, 2001, through December 31, 2024, study areas
   subject to price cap regulation, pursuant to § 61.41 of this chapter,
   shall assign the balance of Account 6620-Services to the
   categories/subcategories, as specified in paragraphs (a)(1)(i) through
   (viii) of this section, based on the relative percentage assignment of
   the balance of Account 6620 to these categories/subcategories during
   the twelve-month period ending December 31, 2000. Effective July 1,
   2001, through December 31, 2024, all study areas shall apportion TWX
   service order processing expense, as specified in paragraph
   (a)(1)(viii) of this section among the jurisdictions using relative
   billed TWX revenues for the twelve-month period ending December 31,
   2000. All other subcategories of End-user service order processing
   expense, as specified in paragraphs (a)(1)(i) through (viii) shall be
   directly assigned.

   (2) End user payment and collection includes expenses incurred in
   relation to the payment and collection of amounts billed to end users.
   It also includes commissions paid to payment agencies (which receive
   payment on customer accounts) and collection agencies. This category
   does not include any payment or collection expenses for services
   provided to interexchange carriers. End user payment and collection
   expenses are first segregated into the following subcategories based on
   relative total state and interstate billed revenues (excluding revenues
   billed to interexchange carriers and/or revenues deposited in coin
   boxes) for services for which end user payment and collection is
   provided: State private line and special access; interstate private
   line and special access; State message toll including WATS; interstate
   message toll including WATS, and interstate subscriber line charge;
   local, including directory advertising.

   (i) State private line and special access payment and collection
   expense is assigned to the State jurisdiction.

   (ii) Interstate private line and special access payment and collection
   expense is assigned to the interstate jurisdiction.

   (iii) State message toll including WATS payment and collection expense
   is assigned to the State jurisdiction.

   (iv) Interstate message toll including WATS and interstate subscriber
   line charge payment and collection expense is assigned to the
   interstate jurisdiction.

   (v) Local, including directory advertising payment and collection
   expense is assigned to the State jurisdiction.

   (vi) [Reserved]

   (vii) Effective July 1, 2001, through December 31, 2024, study areas
   subject to price cap regulation, pursuant to § 61.41 of this chapter,
   shall assign the balance of Account 6620-Services to the subcategories,
   as specified in paragraphs (a)(2)(i) through (vi) of this section,
   based on the relative percentage assignment of the balance of Account
   6620 to these categories/subcategories during the twelve-month period
   ending December 31, 2000. All other subcategories of End User payment
   and collection expense, as specified in paragraphs (a)(2)(i) through
   (v) of this section, shall be directly assigned.

   (3) End user billing inquiry includes expenses related to handling end
   users' inquiries concerning their bills. This category does not include
   expenses related to the inquiries of interexchange carriers concerning
   their bills. End user billing inquiry costs are first segregated into
   the following subcategories based on the relative number of actual
   contracts, weighted if appropriate, to reflect differences in the
   average work time per contact: State private line and special access;
   interstate private line and special access; State message toll
   including WATS, interstate message toll including WATS, interstate
   subscriber line charge; and other.

   (i) State private line and special access billing inquiry expense is
   directly assigned to the State jurisdiction.

   (ii) Interstate private line and special access billing inquiry expense
   is directly assigned to the interstate jurisdiction.

   (iii) State message toll including WATS billing inquiry expense is
   directly assigned to the State jurisdiction.

   (iv) Interstate message toll including WATS, and interstate subscriber
   line charge billing inquiry expense is directly assigned to the
   interstate jurisdiction.

   (v) [Reserved]

   (vi) Other billing inquiry expense (primarily related to local bills
   but also including directory advertising) is directly assigned to the
   State jurisdiction.

   (vii) Effective July 1, 2001, through December 31, 2024, study areas
   subject to price cap regulation, pursuant to § 61.41 of this chapter,
   shall assign the balance of Account 6620-Services to the subcategories,
   as specified in paragraphs (a)(3)(i) through (vi) of this section,
   based on the relative percentage assignment of the balance of Account
   6620 to these subcategories during the twelve-month period ending
   December 31, 2000. All other subcategories of End user billing inquiry
   expense, as specified in paragraphs (a)(2)(i) through (vi) shall be
   directly assigned.

   (4) Interexchange carrier service order processing includes expenses
   associated with the receipt and processing of interexchange carrier
   orders for service and inquiries about service. Interexchange carrier
   service order processing expenses are assigned to the following
   subcategories based on the relative number of actual contacts which are
   weighted, if appropriate, to reflect differences in the average work
   time per contact: State special access and private line; interstate
   special access and private line; State switched access and message toll
   including WATS; interstate switched access and message toll including
   WATS; State billing and collection; and interstate billing and
   collection.

   (i) State special access and private line service order processing
   expense is directly assigned to the State jurisdiction.

   (ii) Interstate special access and private line service order
   processing expense is directly assigned to the interstate jurisdiction.

   (iii) State switched access and message toll including WATS service
   order processing expense is directly assigned to the State
   jurisdiction.

   (iv) Interstate switched access and message toll including WATS service
   order processing expense is directly assigned to the interstate
   jurisdiction.

   (v) State billing and collection service order processing expense is
   directly assigned to the state jurisdiction.

   (vi) Interstate billing and collection service order processing expense
   is directly assigned to the interstate jurisdiction.

   (vii) Effective July 1, 2001, through December 31, 2024, study areas
   subject to price cap regulation, pursuant to § 61.41 of this chapter,
   shall assign the balance of Account 6620-Services to the subcategories,
   as specified in paragraphs (a)(4)(i) through (vi) of this section,
   based on the relative percentage assignment of the balance of Account
   6620 to these subcategories during the twelve-month period ending
   December 31, 2000. All subcategories of Interexchange carrier service
   order processing expense, as specified in paragraphs (a)(2)(i) through
   (vi), shall be directly assigned.

   (5) Interexchange carrier payment and collection includes expenses
   associated with the payment and collection of interexchange carrier
   billings, including commissions paid to payment and collection agents.
   Interexchange carrier payment and collection expenses are assigned to
   the following subcategories based on relative total State and
   interstate revenues billed to the interexchange carriers: State special
   access and private line; interstate special access and private line;
   State switched access and message toll including WATS; interstate
   switched access and message toll including WATS; State billing and
   collection; and interstate billing and collection.

   (i) State special access and private line payment and collection
   expense is directly assigned to the State jurisdiction.

   (ii) Interstate special access and private line payment and collection
   expense is directly assigned to the interstate jurisdiction.

   (iii) State switched access and message toll including WATS payment and
   collection expense is directly assigned to the State jurisdiction.

   (iv) Interstate switched access and message toll including WATS payment
   and collection expense is directly assigned to the interstate
   jurisdiction.

   (v) State billing and collection payment and collection expense is
   directly assigned to the State jurisdiction.

   (vi) Interstate billing and collection payment and collection expense
   is directly assigned to the interstate jurisdiction.

   (vii) Effective July 1, 2001, through December 31, 2024, study areas
   subject to price cap regulation, pursuant to § 61.41 of this chapter,
   shall assign the balance of Account 6620-Services to the subcategories,
   as specified in paragraphs (a)(5)(i) through (vi) of this section,
   based on the relative percentage assignment of the balance of Account
   6620 to these subcategories during the twelve-month period ending
   December 31, 2000. All subcategories of Interexchange carrier payment
   expense, as specified in paragraphs (a)(2)(i) through (vi) shall be
   directly assigned.

   (6) Interexchange carrier billing inquiry includes expenses related to
   the handling of interexchange carrier billing inquiries. Interexchange
   carrier billing inquiry expenses are assigned to the following
   subcategories based on the relative number of actual contacts, weighted
   if appropriate, to reflect differences in the average work time per
   contact: State special access and private line; interstate special
   access and private line; State switched access and message toll
   including WATS; interstate switched access and message toll including
   WATS; State billing and collection; and interstate billing and
   collection.

   (i) State special access and private line billing inquiry expenses is
   directly assigned to the State jurisdiction.

   (ii) Interstate special access and private line billing inquiry expense
   is directly assigned to the interstate jurisdiction.

   (iii) State switched access and message toll including WATS billing
   inquiry expense is directly assigned to the State jurisdiction.

   (iv) Interstate switched access and message toll including WATS billing
   inquiry expense is directly assigned to the interstate jurisdiction.

   (v) State billing and collection billing inquiry expense is directly
   assigned to the State jurisdiction.

   (vi) Interstate Billing and Collection billing inquiry expense is
   directly assigned to the interstate jurisdiction.

   (vii) Effective July 1, 2001, through December 31, 2024, study areas
   subject to price cap regulation, pursuant to § 61.41 of this chapter,
   shall assign the balance of Account 6620-Services to the subcategories,
   as specified in paragraphs (a)(6)(i) through (vi) of this section,
   based on the relative percentage assignment of the balance of Account
   6620 to these subcategories during the twelve-month period ending
   December 31, 2000. All subcategories of Interexchange carrier billing
   inquiry expense, as specified in paragraphs (a)(2)(i) through (vi),
   shall be directly assigned.

   (7) [Reserved]

   (b) [Reserved]

   [ 52 FR 17229 , May 6, 1987, as amended at  66 FR 33207 , June 21, 2001;  71 FR 65746 , Nov. 9, 2006;  75 FR 30301 , June 1, 2010;  76 FR 30841 , May 27,
   2011;  79 FR 36238 , June 26, 2014;  83 FR 63587 , Dec. 11, 2018]