Goto Section: 65.306 | 65.500 | Table of Contents
Revised as of October 1, 2019
Goto Year:2018 |
§ 65.450 Net income.
Link to an amendment published at 84 FR 4733 , Feb. 19, 2019.
(a) Net income shall consist of all revenues derived from the provision
of interstate telecommunications services regulated by this Commission
less expenses recognized by the Commission as necessary to the
provision of these services. The calculation of expenses entering into
the determination of net income shall include the interstate portion of
plant specific operations (Accounts 6110-6441), plant nonspecific
operations (Accounts 6510-6565), customer operations (Accounts
6610-6623), corporate operations (Accounts 6720-6790), other operating
income and expense (Account 7100), and operating taxes (Accounts
7200-7250), except to the extent this Commission specifically provides
to the contrary.
(b) Gains and losses related to the disposition of plant in service
items, shall be handled as follows:
(1) Gains related to property sold to others and leased back under
capital leases for use in telecommunications services shall be recorded
in Account 4300, Other long-term liabilities and deferred credits, and
credited to Account 6563, Amortization expense—tangible, over the
amortization period established for the capital lease;
(2) Gains or losses related to the disposition of land and other
nondepreciable items recorded in Account 7100 (Other operating income
and expense) shall be included in net income for ratemaking purposes,
but adjusted to reflect the relative amount of time such property was
used in regulated operations and included in the rate base; and
(3) Proceeds related to the disposition of property depreciated on a
group basis and used jointly in regulated and nonregulated activities,
including sale-leaseback arrangements for property depreciated on a
group basis, shall be credited to the related reserves and attributed
to regulated and nonregulated in proportion to the accumulated
regulated and nonregulated depreciation for that group.
(c) Gains or losses related to the disposition of property that was
never included in the rate base shall not be considered for ratemaking
(d) Except for the allowance for funds used during construction,
reasonable charitable deductions and interest related to customer
deposits, the amounts recorded as nonoperating income and expenses and
taxes (Accounts 7300 and 7400) and interest and related items (Account
7500) and extraordinary items (Account 7600) shall not be included
unless this Commission specifically determines that particular items
recorded in those accounts shall be included.
[ 53 FR 1029 , Jan. 15, 1988, as amended at 60 FR 12139 , Mar. 6, 1995; 67 FR 5702 , Feb. 6, 2002; 69 FR 53652 , Sept. 2, 2004]
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Subpart D—Interexchange Carriers
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Goto Section: 65.306 | 65.500
Goto Year: 2018 |
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