Goto Section: 36.1 | 36.3 | Table of Contents
Revised as of September 1, 2021
Goto Year:2020 |
§ 36.2 Fundamental principles underlying procedures.
(a) The following general principles underlie the procedures outlined
in this part:
(1) Separations are intended to apportion costs among categories or
jurisdictions by actual use or by direct assignment.
(2) Separations are made on the “actual use” basis, which gives
consideration to relative occupancy and relative time measurements.
(3) In the development of “actual use” measurements, measurements of
use are (i) determined for telecommunications plant or for work
performed by operating forces on a unit basis (e.g.,
conversation-minute-kilometers per message, weighted standard work
seconds per call) in studies of traffic handled or work performed
during a representative period for all traffic and (ii) applied to
overall traffic volumes, i.e., 24-hour rather than busy-hour volumes.
(b) Underlying the procedures included in this manual for the
separation of plant costs is an over-all concept which may be described
(1) Telecommunications plant, in general, is segregable into two broad
classifications, namely, (i) interexchange plant, which is plant used
primarily to furnish toll services, and (ii) exchange plant, which is
plant used primarily to furnish local services.
(2) Within the interexchange classification, there are three broad
types of plant, i.e., operator systems, switching plant, and trunk
transmission equipment. Within the exchange classification there are
four board types of plant, i.e., operator systems, switching plant,
truck equipment and subscriber plant. Subscriber plant comprises lines
to the subscriber.
(3) In general, the basis for apportioning telecommunications plant
used jointly for state and interstate operations are:
(i) Operator work time expressed in weighted standard work seconds is
the basis for measuring the use of operator systems.
(ii) Holding-time-minutes is the basis for measuring the use of local
and toll switching plant.
(iii) Conversation-minute-kilometers or conversation minutes is the
basis for measuring the use of interexchange circuit plant and
holding-time minutes is the basis for measuring the use of exchange
trunk plant. While the use of holding-time-minute-kilometers is the
basic fundamental allocation factor for interexchange circuit plant and
exchange trunk plant, the use of conversation-minute-kilometers or
conversation-minutes for the allocation of interexchange circuit plant
and holding-time minutes for the allocation of exchange trunk plant are
considered practical approximations for separations between state and
interstate operations when related to the broad types of plant
classifications used herein.
(iv) Message telecommunications subscriber plant shall be apportioned
on the basis of a Gross Allocator which assigns 25 percent to the
interstate jurisdiction and 75 percent to the state jurisdiction.
(c) Property rented to affiliates, if not substantial in amount, is
included as used property of the owning company with the associated
revenues and expenses treated consistently: Also such property rented
from affiliates is not included with the used property of the company
making the separations; the rent paid is included in its expenses. If
substantial in amount, the following treatment is applied:
(1) In the case of property rented to affiliates, the property and
related expenses and rent revenues are excluded from the telephone
operations of the owning company, and
(2) In the case of property rented from affiliates, the property and
related expenses are included with, and the rent expenses are excluded
from, the telephone operations of the company making the separation.
(d) Property rented to or from non-affiliates is usually to be included
as used property of the owning company with the associated revenues and
expenses treated consistently. In the event the amount is substantial,
the property involved and the revenues and expenses associated
therewith may be excluded from or included in the telecommunications
operations of the company. When required, the cost of property rented
to or from non-affiliates is determined using procedures that are
consistent with the procedures for the allocation of costs among the
(e) Costs associated with services or plant billed to another company
which have once been separated under procedures consistent with general
principles set forth in this part, and are thus identifiable as
entirely interstate or State in nature, shall be directly assigned to
the appropriate operation and jurisdiction.
[ 52 FR 17229 , May 6, 1987, as amended at 58 FR 44905 , Aug. 25, 1993; 71 FR 65745 , Nov. 9, 2006]
Goto Section: 36.1 | 36.3
Goto Year: 2020 |
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