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| C. Carrying Charge Rate (Poles)
44. The carrying charge rate157 reflects those costs incurred by the utility in owning and maintaining poles regardless of the presence of pole attachments.158 The elements of the carrying charge rate are: administrative, maintenance, depreciation, taxes and cost of capital (rate of return).159 In the Pole Attachment Order,160 the Commission identified the regulatory accounts to be used, where possible, in applying the Cable Formula to determine the maximum allowable rate for pole attachments. The carrying charge rate factor of the Cable Formula is calculated as follows:161 
To calculate the carrying charge rate, the Commission developed a formula that relates each of these elements to a pole owner's net pole investment.162 The full Cable Formula, with all its components, elements and accounts used, is attached to this Order as Appendix C. 45. In May 1986, the Commission adopted a new uniform system of accounts for all FCC regulated telephone companies.163 The Commission's Annual Report Form M was revised on April 27, 1989164 to reflect the new accounting system in Part 32 that replaced the accounting system in Part 31, effective January 1, 1988.165 The Pole Attachment Order provided formulas for determining a maximum just and reasonable pole attachment rate with regulatory accounts identified.166 The formula for LECs used Part 31 accounts. After the New USOA-Part 32 Adoption, the Common Carrier Bureau responded to a request for clarification of what Part 32 accounts would be used in place of the Part 31 accounts specified in the Pole Attachment Order. That guidance was given with the understanding that an exact tracking of expenses from Part 31 accounts to Part 32 accounts was not possible.167 In this Order, we formalize and further clarify the Part 32 accounts to be used in the Cable Formula for LECs utilities. LECs maintain their Part 32 accounts and file their annual operating costs with the Commission's Automated Reporting and Management Information System ("ARMIS").168 1. The Administrative Element 46. In the Pole Attachment Order, the Commission adopted procedures to identify and calculate administrative expenses, for use in the carrying charge rate as a ratio of total administrative and general expenses to total plant investment.169 A formula for the administrative expenses170 was given as follows: 
In the Notice,171 we proposed the following revised formula, using Part 32 accounts, for the administrative element for LECs: 
48. The substantive changes to the administrative element proposed in the Notice, based primarily on the adoption of Part 32,172 included the addition of Accounts 6710 (Executive and Planning), 6720 (General and Administrative), 6110 (Network Support Expense), 6120 (General Support Expense), Directory: Bureaus -> Cable -> Orders Orders -> Before the Federal Communications Commission Washington, D Bureaus -> Federal Communications Commission da 99-2172 Before the federal communications commission Bureaus -> News news media Information 202 / 418-0500 Bureaus -> Sbc communications inc. And bellsouth corporation seek fcc consent to transfer control of, or assign, licenses to joint venture Bureaus -> News news media Information 202 / 418-0500 Bureaus -> Appendix a carriers Receiving Preliminary Extensions Until September 30, 2001 to Comply with calea section 103 Requirements Carrier Name trs number Bureaus -> I. statutory framework Orders -> Federal Communications Commission fcc 01-22 Download 2.07 Mb. Share with your friends:
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