3 AAC 48.430. Jurisdictional separations

(a) Except as set out in (b) - (m) of this section, the Separations Manual, setting out the standard procedure for separating telephone property costs, revenues, expenses, taxes, and reserves, and as set out in 47 C.F.R. 36, as revised as of August 8, 1988, is adopted by reference. A telephone utility shall allocate its property costs, revenues, expenses, taxes, and reserves in accordance with the principles and procedures in 47 C.F.R. 36, except as set out in (b) - (m) of this section, for use by the commission in establishing rates for telephone utilities.

(b) Except as set out in (e) and (f) of this section, "state toll" is substituted for "state" throughout Part 36.

(c) Sections 36.1(b), 36.2(b)(3), and (e), 36.155(a), 36.331(b), and 37.377(a)(7) are modified by substituting "state toll and local" for "state and interstate" and "interstate or state."

(d) 47 C.F.R. 36.2(b)(3)(iv), 36.126(c)(3), and 36.154(c) - (f) are not adopted. The following applies:

(1) Category 4.13 and Category 1.3 costs, as defined by 47 C.F.R. 36.126(a) and (b) and 36.154(a), will be apportioned by an allocation factor of .20.

(2) Repealed 1/10/99.

(3) Repealed 1/10/99.

(4) Repealed 1/10/99.

(5) Repealed 1/10/99.

(e) 47 C.F.R. 36.125(b) - (f) are not adopted. The following applies:

(1) Category 3 investment, as defined by 47 C.F.R. 36.125(a), is apportioned to the state toll jurisdiction on the basis of the state toll dial equipment minute (DEM) factor. The state toll DEM factor is the ratio of the state toll DEM to total DEM.

(2) Category 3 investment, as defined by 47 C.F.R. 36.125(a), is apportioned to the AUSF on the basis of weighted state toll DEM minus state toll DEM. Weighted state toll DEM is equal to state toll DEM times in weighting factor set out in (3) of this subsection.

(3) The applicable weighting factor is as follows:

NUMBER OF ACCESS LINES WEIGHTING IN LOCAL EXCHANGE COMPANY FACTOR STUDY AREA 0-10,000 3.0 10,001-20,000 2.5 20,001- or above 1.0

(4) Notwithstanding (1) - (3) of this subsection, the allocation factor to intrastate toll and universal service is limited to a level that brings the total allocation to interstate toll plus federal universal service support for switching, intrastate toll, and the state universal service support for DEM weighting to the percent of Category 3 investment determined for each local exchange company by the following formula:

.85 + (.05 x (A УЖ B)) where: A = the number of exchanges with toll free calling to less than 100 access lines B = the total number of exchanges

(5) Reductions to intrastate factors resulting from application of (3) and (4) of this subsection are applied first to reduce the DEM weighting support portion of the state universal service factor, with any residual used to reduce the intrastate toll DEM factor.

(f) Sections 36.142(b) and 36.377(a)(1)(i), (a)(1)(iii), (a)(2)(v), and (a)(3)(vi) are modified by substituting "local" or "local exchange" for "state" in the phrases "state jurisdiction" and "state operations."

(g) Section 36.154 is modified by adding "Subcategory 1.4, local private lines," in section 36.154(a) and including subcategory 1.4 in the direct assignments provided in section 36.154(b).

(h) Section 36.181(a) is modified by substituting "state toll operation" for "interstate operation."

(i) Section 36.377(a)(1)(i), (a)(2)(v), and (a)(3)(vi) are modified by adding "local private line expense" to the assignments provided in these sections.

(j) Section 36.377(a)(7) is modified by substituting "revenues of" for "revenues deposited in."

(k) Subparts F and G of Part 36, sections 36.601 - 36.741, are not adopted.

( l ) Unless the context indicates otherwise, in this section

(1) "dial equipment minutes" or "DEM" means the minutes of holding time of the originating and terminating local switching equipment;

(2) "holding time" means the time in which an item of telephone plant is in actual use either by a customer or an operator; "holding time" includes on a completed telephone call, conversation time as well as other time in use; "holding time" does not include at local dial offices measured minutes that result from other than customer attempts to place calls as evidenced by the dialing of at least one digit.

(m) The provisions of 47 C.F.R. 36.171 and 47 C.F.R. 36.222(c), as revised as of September 6, 1995, are adopted by reference.

History: Eff. 7/18/75, Register 55; am 11/25/83, Register 88; am 4/9/89, Register 110; am 3/28/90, Register 113; am 1/10/99, Register 149; am 5/20/99, Register 150; am 1/1/2001, Register 156; am 4/24/2004, Register 170

Authority: AS 42.05.141

AS 42.05.151

AS 42.05.401

Editor's note: A copy of the Separations Manual, 47 C.F.R. 36, as amended through August 8, 1988, is available for inspection at the offices of the Regulatory Commission of Alaska as specified in 3 AAC 48.010(a) .

Under AS 44.62.125 (b)(6) and AS 01.05.031 (b)(7), the regulations attorney added subsec. (k) to 3 AAC 48.430 as of Register 112, January 1990. The former Alaska Public Utilities Commission had adopted that subsection, but it was inadvertently omitted from the set of 3 AAC 48.430 amendments that was filed on March 10, 1989.

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