Sec.  65.702   Measurement of interstate service earnings.

   (a) For exchange carriers, earnings shall be measured separately for each
   access service category for purposes of determining compliance with the
   maximum allowable rate of return. The access service categories shall be: an
   aggregated category consisting of Special Access,  Sec. 69.113, and Contribution
   Charges for Special Access Expanded Interconnection,  Sec. 69.122; Connection
   Charges for Expanded Interconnection,  Sec. 69.121; Common Line,  Sec.  Sec. 69.104–69.105;
   and  an  aggregated  category consisting of Line Termination,  Sec. 69.106,
   Intercept,  Sec. 69.108, Local Switching,  Sec. 69.107, Transport,  Sec.  Sec. 69.110–69.112,
   69.124, 69.125, and Information,  Sec. 69.109. The Billing and Collection access
   element shall not be included in any access service category for purposes of
   this part. The Commission will also separately review exchange carrier
   overall interstate earnings subject to this part for determining compliance
   with the maximum allowable rate of return determined by  Sec. 65.700(b).

   (b)  For exchange carriers, earnings shall be measured for purposes of
   determining compliance with the maximum allowable rates of return separately
   for each study area; provided, however, that if the carrier has filed or
   concurred in access tariffs aggregating costs and rates for two or more
   study areas, the earnings will be determined for the aggregated study areas
   rather than for each study area separately. If an exchange carrier has not
   utilized the same level of study area aggregation during the entire two-year
   earnings review period, then the carrier's earnings will be measured for the
   entire two-year period on the basis of the tariffs in effect at the end of
   the second year of the two-year review period; provided, however, that if
   tariffs representing a higher level of study area aggregation were not in
   effect for at least eight months in the second year, then the carrier's
   earnings  will  be  measured  on  the basis of the study area level of
   aggregation in effect for the majority of the two-year period; provided
   further, that any carrier that was not a member of the National Exchange
   Carrier Association or other voluntary pools for both years of the two-year
   review period will have its earnings reviewed individually for the full
   two-year period.

   [ 51 FR 11034 , Apr. 1, 1986, as amended at  57 FR 54719 , Nov. 20, 1992;  58 FR 48763 , Sept. 17, 1993;  60 FR 28546 , June 1, 1995]

Subpart G—Rate Base

   Source:    53 FR 1029 , Jan. 15, 1988, unless otherwise noted.