Goto Section: 43.41 | 43.51 | Table of Contents
FCC 43.43
Revised as of October 1, 2014
Goto Year:2013 |
2015
§ 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]
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Goto Section: 43.41 | 43.51
Goto Year: 2013 |
2015
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