Goto Section: 36.2 | 36.4 | Table of Contents

FCC 36.3
Revised as of October 2, 2015
Goto Year:2014 | 2016
§ 36.3   Freezing of jurisdictional separations category relationships and/or
allocation factors.

   (a)  Effective July 1, 2001, through June 30, 2017, all local exchange
   carriers subject to part 36 rules shall apportion costs to the jurisdictions
   using their study area and/or exchange specific jurisdictional allocation
   factors calculated during the twelve month period ending December 31, 2000,
   for  each of the categories/sub-categories as specified herein. Direct
   assignment of private line service costs between jurisdictions shall be
   updated annually. Other direct assignment of investment, expenses, revenues
   or taxes between jurisdictions shall be updated annually. Local exchange
   carriers that invest in telecommunications plant categories during the
   period July 1, 2001, through June 30, 2017, for which it had no separations
   allocation factors for the twelve month period ending December 31, 2000,
   shall apportion that investment among the jurisdictions in accordance with
   the  separations  procedures in effect as of December 31, 2000 for the
   duration of the freeze.

   (b) Effective July 1, 2001, through June 30, 2017, local exchange carriers
   subject to price cap regulation, pursuant to § 61.41 of this chapter, shall
   assign   costs   from   the   part  32  accounts  to  the  separations
   categories/sub-categories, as specified herein, based on the percentage
   relationships of the categorized/sub-categorized costs to their associated
   part 32 accounts for the twelve month period ending December 31, 2000. If a
   part 32 account for separations purposes is categorized into more than one
   category, the percentage relationship among the categories shall be utilized
   as well. Local exchange carriers that invest in types of telecommunications
   plant during the period July 1, 2001, through June 30, 2017, for which it
   had no separations category investment for the twelve month period ending
   December 31, 2000, shall assign such investment to separations categories in
   accordance with the separations procedures in effect as of December 31,
   2000. Local exchange carriers not subject to price cap regulation, pursuant
   to § 61.41 of this chapter, may elect to be subject to the provisions of
   paragraph (b) of this section. Such election must be made prior to July 1,
   2001. Local exchange carriers electing to become subject to paragraph (b)
   shall not be eligible to withdraw from such regulation for the duration of
   the freeze. Local exchange carriers participating in Association tariffs,
   pursuant to § 69.601 et seq., shall notify the Association prior to July 1,
   2001, of such intent to be subject to the provisions of paragraph (b). Local
   exchange carriers not participating in Association tariffs shall notify the
   Commission  prior to July 1, 2001, of such intent to be subject to the
   provisions of paragraph (b).

   (c)  Effective July 1, 2001, through June 30, 2017, any local exchange
   carrier that sells or otherwise transfers exchanges, or parts thereof, to
   another carrier's study area shall continue to utilize the factors and, if
   applicable, category relationships as specified in paragraphs (a) and (b) of
   this section.

   (d)  Effective July 1, 2001, through June 30, 2017, any local exchange
   carrier that buys or otherwise acquires exchanges or part thereof, shall
   calculate new, composite factors and, if applicable, category relationships
   based on a weighted average of both the seller's and purchaser's factors and
   category relationships calculated pursuant to paragraphs (a) and (b) of this
   section. This weighted average should be based on the number of access lines
   currently being served by the acquiring carrier and the number of access
   lines in the acquired exchanges.

   (1) To compute the composite allocation factors and, if applicable, the
   composite category percentage relationships of the acquiring company, the
   acquiring carrier shall first sum its existing (pre-purchase) access lines
   (A) with the total access lines acquired from selling company (B). Then,
   multiply its factors and category relationship percentages by (A/(A + B))
   and those of the selling company by (B/(A + B)) and sum the results.

   (2)  For  carriers  subject to a freeze of category relationships, the
   acquiring  carrier should remove all categories of investment from the
   selling  carrier's list of frozen category relationships where no such
   category  investment  exists within the sold exchange(s). The seller's
   remaining category relationships must then be increased proportionately to
   total 100 percent. Then, the adjusted seller's category relationships must
   be combined with those of the acquiring carrier as specified in § 36.3(d)(1)
   to  determine  the  category relationships for the acquiring carrier's
   post-transfer study area.

   (e) Any local exchange carrier study area converting from average schedule
   company status, as defined in § 69.605(c) of this chapter, to cost company
   status during the period July 1, 2001, through June 30, 2017, shall, for the
   first   twelve   months   subsequent   to  conversion  categorize  the
   telecommunications plant and expenses and develop separations allocation
   factors  in accordance with the separations procedures in effect as of
   December  31, 2000. Effective July 1, 2001 through June 30, 2017, such
   companies shall utilize the separations allocation factors and account
   categorization subject to the requirements of paragraphs (a) and (b) of this
   section based on the category relationships and allocation factors for the
   twelve months subsequent to the conversion to cost company status.

   [ 66 FR 33204 , June 21, 2001, as amended at  79 FR 36235 , June 26, 2014]

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Goto Section: 36.2 | 36.4

Goto Year: 2014 | 2016
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