§  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, § 69.113, and Contribution Charges for Special Access Expanded
   Interconnection, § 69.122; Connection Charges for Expanded
   Interconnection, § 69.121; Common Line, § § 69.104-69.105; and an
   aggregated category consisting of Line Termination, § 69.106,
   Intercept, § 69.108, Local Switching, § 69.107, Transport,
   § § 69.110-69.112, 69.124, 69.125, and Information, § 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 § 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.