§ 36.603   Calculation of incumbent local exchange carrier portion of
nationwide loop cost expense adjustment for rate-of-return carriers.

   (a) Beginning January 1, 2003, the annual amount of the rural incumbent
   local exchange carrier portion of the nationwide loop cost expense
   adjustment calculated pursuant to this subpart F shall not exceed the
   amount of the total rural incumbent local exchange carrier loop cost
   expense adjustment for the immediately preceding calendar year,
   multiplied times one plus the Rural Growth Factor calculated pursuant
   to § 36.604. Beginning January 1, 2012, the total annual amount of the
   incumbent local exchange carrier portion of the nationwide loop cost
   expense adjustment shall not exceed the expense adjustment calculated
   for rate-of-return regulated carriers pursuant to this paragraph.
   Beginning January 1, 2012, rate-of-return local exchange carriers shall
   not include rate-of-return carriers affiliated with price cap local
   exchange carriers as set forth in § 36.601(a) of this subpart.
   Beginning January 1, 2013, and each calendar year thereafter, the total
   annual amount of the incumbent local exchange carrier portion of the
   nationwide loop cost expense adjustment shall not exceed the amount for
   the immediately preceding calendar year, multiplied times one plus the
   Rural Growth Factor calculated pursuant to § 36.604.

   (b) The annual rural incumbent local exchange carrier portion of the
   nationwide loop cost expense adjustment shall be reduced to reflect the
   transfer of rural incumbent local exchange carrier access lines that
   are eligible for expense adjustments pursuant to § 36.631. The
   reduction shall equal the amount of the § 36.631 expense adjustment
   available to the transferred access lines at the time of the transfer
   and shall be effective in the next calendar quarter after the access
   lines are transferred.

   (c) Safety net additive support calculated pursuant to § 36.605, and
   transferred high-cost support and safety valve support calculated
   pursuant to § 54.305 of this chapter shall not be included in the rural
   incumbent local exchange carrier portion of the annual nationwide loop
   cost expense adjustment.

   [ 66 FR 30085 , June 5, 2001, as amended at  67 FR 44083 , July 1, 2002;  76 FR 73853 , Nov. 29, 2011]

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