Sec. 36.421  Equal access expenses.

    (a) Equal access expenses include only initial incremental pre-
subscription costs and other initial incremental expenditures related 
directly to the provision of equal access, that would not be required to 
upgrade the capabilities of the office involved absent the provision of 
equal access. Equal access expenses are limited to such expenditures for 
converting central offices that serve competitive interexchange carriers 
or where there has been a bona fide request for conversion to equal 
access.
    (b) Equal access expenses are apportioned between the jurisdictions 
by first segregating them from all other expenses in the primary 
accounts and then allocating them on the same basis as equal access 
investment.

                    Subpart E--Reserves and Deferrals