Goto Section: 36.2 | 36.101 | Table of Contents

FCC 36.3
Revised as of October 1, 2009
Goto Year:2008 | 2010
  §  36.3   Freezing of jurisdictional separations category relationships and/or
allocation factors.

   (a) Effective July 1, 2001, through June 30, 2010, all local exchange
   carriers subject to part 36 rules shall apportion costs to the
   jurisdictions using their study area and/or exchange specific
   jurisdictional allocation factors calculated during the twelve month
   period ending December 31, 2000, for each of the
   categories/sub-categories as specified herein. Direct assignment of
   private line service costs between jurisdictions shall be updated
   annually. Other direct assignment of investment, expenses, revenues or
   taxes between jurisdictions shall be updated annually. Local exchange
   carriers that invest in telecommunications plant categories during the
   period July 1, 2001, through June 30, 2010, for which it had no
   separations allocation factors for the twelve month period ending
   December 31, 2000, shall apportion that investment among the
   jurisdictions in accordance with the separations procedures in effect
   as of December 31, 2000 for the duration of the freeze.

   (b) Effective July 1, 2001, through June 30, 2010, local exchange
   carriers subject to price cap regulation, pursuant to § 61.41, shall
   assign costs from the part 32 accounts to the separations
   categories/sub-categories, as specified herein, based on the percentage
   relationships of the categorized/sub-categorized costs to their
   associated part 32 accounts for the twelve month period ending December
   31, 2000. If a part 32 account for separations purposes is categorized
   into more than one category, the percentage relationship among the
   categories shall be utilized as well. Local exchange carriers that
   invest in types of telecommunications plant during the period July 1,
   2001, through June 30, 2010, for which it had no separations category
   investment for the twelve month period ending December 31, 2000, shall
   assign such investment to separations categories in accordance with the
   separations procedures in effect as of December 31, 2000. Local
   exchange carriers not subject to price cap regulation, pursuant to
   § 61.41 of this chapter, may elect to be subject to the provisions of
   § 36.3(b). Such election must be made prior to July 1, 2001. Local
   exchange carriers electing to become subject to § 36.3(b) shall not be
   eligible to withdraw from such regulation for the duration of the
   freeze. Local exchange carriers participating in Association tariffs,
   pursuant to § 69.601 of this chapter et seq., shall notify the
   Association prior to July 1, 2001, of such intent to be subject to the
   provisions of § 36.3(b). Local exchange carriers not participating in
   Association tariffs shall notify the Commission prior to July 1, 2001,
   of such intent to be subject to the provisions of § 36.3(b).

   (c) Effective July 1, 2001, through June 30, 2010, any local exchange
   carrier that sells or otherwise transfers exchanges, or parts thereof,
   to another carrier's study area shall continue to utilize the factors
   and, if applicable, category relationships as specified in § § 36.3(a)
   and (b).

   (d) Effective July 1, 2001, through June 30, 2010, any local exchange
   carrier that buys or otherwise acquires exchanges or part thereof,
   shall calculate new, composite factors and, if applicable, category
   relationships based on a weighted average of both the seller's and
   purchaser's factors and category relationships calculated pursuant to
   § § 36.3(a) and 36.3(b). This weighted average should be based on the
   number of access lines currently being served by the acquiring carrier
   and the number of access lines in the acquired exchanges.

   (1) To compute the composite allocation factors and, if applicable, the
   composite category percentage relationships of the acquiring company,
   the acquiring carrier shall first sum its existing (pre-purchase)
   access lines (A) with the total access lines acquired from selling
   company (B). Then, multiply its factors and category relationship
   percentages by (A/(A+B)) and those of the selling company by (B/(A+B))
   and sum the results.

   (2) For carriers subject to a freeze of category relationships, the
   acquiring carrier should remove all categories of investment from the
   selling carrier's list of frozen category relationships where no such
   category investment exists within the sold exchange(s). The seller's
   remaining category relationships must then be increased proportionately
   to total 100 percent. Then, the adjusted seller's category
   relationships must be combined with those of the acquiring carrier as
   specified in § 36.3(d)(1) to determine the category relationships for
   the acquiring carrier's post-transfer study area.

   (e) Any local exchange carrier study area converting from average
   schedule company status, as defined in § 69.605(c) of this chapter, to
   cost company status during the period July 1, 2001, through June 30,
   2010, shall, for the first twelve months subsequent to conversion
   categorize the telecommunications plant and expenses and develop
   separations allocation factors in accordance with the separations
   procedures in effect as of December 31, 2000. Effective July 1, 2001
   through June 30, 2010, such companies shall utilize the separations
   allocation factors and account categorization subject to the
   requirements of § § 36.3(a) and (b) based on the category relationships
   and allocation factors for the twelve months subsequent to the
   conversion to cost company status.

   [ 66 FR 33204 , June 21, 2001]

Subpart B—Telecommunications Property

General


Goto Section: 36.2 | 36.101

Goto Year: 2008 | 2010
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