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FCC 65.300
Revised as of October 2, 2015
Goto Year:2014 | 2016
§ 65.300   Calculations of the components and weights of the cost of capital.

   (a) Sections 65.301 through 65.303 specify the calculations that are to be
   performed in computing cost of debt, cost of preferred stock, and financial
   structure weights for prescription proceedings. The calculations shall
   determine, where applicable, a composite cost of debt, a composite cost of
   preferred stock, and a composite financial structure for all local exchange
   carriers  with  annual  revenues equal to or above the indexed revenue
   threshold as defined in § 32.9000. The calculations shall be based on data
   reported to the Commission in FCC Report 43-02. (See 47 CFR 43.21). The
   results of the calculations shall be used in the represcription proceeding
   to which they relate unless the record in that proceeding shows that their
   use would be unreasonable.

   (b) Excluded from cost of capital calculations made pursuant to § 65.300
   shall be those sources of financing that are not investor supplied, or that
   are otherwise subtracted from a carrier's rate base pursuant to Commission
   orders governing the calculation of net rate base amounts in tariff filings
   that are made pursuant to section 203 of the Communications Act of 1934, 47
   U.S.C. 203, or that were treated as “zero cost” sources of financing in
   section  450 and subpart G of this part 65. Specifically excluded are:
   accounts  payable, accrued taxes, accrued interest, dividends payable,
   deferred credits and operating reserves, deferred taxes and deferred tax
   credits.

   [ 60 FR 28545 , June 1, 1995, as amended at  67 FR 5702 , Feb. 6, 2002]

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Goto Section: 65.105 | 65.301

Goto Year: 2014 | 2016
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