§  43.43   Reports of proposed changes in depreciation rates.

   (a) Each communication common carrier with annual operating expenses
   that equal or exceed the indexed revenue threshold, as defined in
   § 32.9000, and that has been found by this Commission to be a dominant
   carrier with respect to any communications service shall, before making
   any changes in the depreciation rates applicable to its operated plant,
   file with the Commission a report furnishing the data described in the
   subsequent paragraphs of this section, and also comply with the other
   requirements thereof.

   (b) Each such report shall contain the following:

   (1) A schedule showing for each class and subclass of plant (whether or
   not the depreciation rate is proposed to be changed) an appropriate
   designation therefor, the depreciation rate currently in effect, the
   proposed rate, and the service-life and net-salvage estimates
   underlying both the current and proposed depreciation rates;

   (2) An additional schedule showing for each class and subclass, as well
   as the totals for all depreciable plant, (i) the book cost of plant at
   the most recent date available, (ii) the estimated amount of
   depreciation accruals determined by applying the currently effective
   rate to the amount of such book cost, (iii) the estimated amount of
   depreciation accruals determined by applying the rate proposed to be
   used to the amount of such book cost, and (iv) the difference between
   the amounts determined in paragraphs (b)(2) (ii) and (iii) of this
   section;

   (3) A statement giving the reasons for the proposed change in each
   rate;

   (4) A statement describing the method or methods employed in the
   development of the service-life and salvage estimates underlying each
   proposed change in a depreciation rate; and

   (5) The date as of which the revised rates are proposed to be made
   effective in the accounts.

   (c) Except as specified in paragraphs (c)(1) and (c)(3) of this
   section, when the change in the depreciation rate proposed for any
   class or subclass of plant (other than one occasioned solely by a shift
   in the relative investment in the several subclasses of the class of
   plant) amounts to twenty percent (20%) or more of the rate currently
   applied thereto, or when the proposed change will produce an increase
   or decrease of one percent (1%) or more of the aggregate depreciation
   charges for all depreciable plant (based on the amounts determined in
   compliance with paragraph (b)(2) of this section) the carrier shall
   supplement the data required by paragraph (b) of this section) with
   copies of the underlying studies, including calculations and charts,
   developed by the carrier to support service-life and net-salvage
   estimates. If a carrier must submit data of a repetitive nature to
   comply with this requirement, the carrier need only submit a fully
   illustrative portion thereof.

   (1) A Local Exchange Carrier regulated under price caps, pursuant to
   § § 61.41 through 61.49 of this chapter, is not required to submit the
   supplemental information described in paragraph (c) introductory text
   of this section for a specific account if: The carrier's currently
   prescribed depreciation rate for the specific accounts derived from
   basic factors that fall within the basic factor ranges established for
   that same account; and the carrier's proposed depreciation rate for the
   specific account would also be derived from basic factors that fall
   within the basic factor ranges for the same account.

   (2) Local Exchange Carriers that are regulated under price caps,
   pursuant to § § 61.41 through 61.49 of this chapter, and have selected
   basic factors that fall within the basic factor ranges for all accounts
   are exempt from paragraphs (b)(3), (b)(4), and (c) introductory text of
   this section. They shall instead comply with paragraphs (b)(1), (b)(2)
   and (b)(5) of this section and provide a book and theoretical reserve
   summary and a summary of basic factors underlying proposed rates by
   account.

   (3) Interexchange carriers regulated under price caps, pursuant to
   § § 61.41 through 61.49 of this chapter, are exempted from submitting
   the supplemental information as described in paragraph (c) introductory
   text of this section. They shall instead submit: Generation data, a
   summary of basic factors underlying proposed depreciation rates by
   account and a short narrative supporting those basic factors, including
   company plans of forecasted retirements and additions, recent annual
   retirements, salvage and cost of removal.

   (d) Each report shall be filed in duplicate and the original shall be
   signed by the responsible official to whom correspondence related
   thereto should be addressed.

   (e) Unless otherwise directed or approved by the Commission, the
   following shall be observed: Proposed changes in depreciation rates
   shall be filed at least ninety (90) days prior to the last day of the
   month with respect to which the revised rates are first to be applied
   in the accounts (e.g., if the new rates are to be first applied in the
   depreciation accounts for September, they must be filed on or before
   July 1). Such rates may be made retroactive to a date not prior to the
   beginning of the year in which the filing is made: Provided however,
   that in no event shall a carrier for which the Commission has
   prescribed depreciation rates make any changes in such rates unless the
   changes are prescribed by the Commission. Carriers who select basic
   factors that fall within the basic factor ranges for all accounts are
   exempt from depreciation rate prescription by the Commission.

   (f) Any changes in depreciation rates that are made under the
   provisions of paragraph (e) of this section shall not be construed as
   having been approved by the Commission unless the carrier has been
   specifically so informed.

   [ 28 FR 13214 , Dec. 5, 1963, as amended at  30 FR 3223 , Mar. 9, 1965;  53 FR 49987 , Dec. 13, 1988;  58 FR 58790 , Nov. 4, 1993;  61 FR 50246 , Sept.
   25, 1996;  62 FR 39779 , July 24, 1997;  65 FR 18931 , Apr. 10, 2000]