[Code of Federal Regulations]
[Title 47, Volume 3]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR64.903]

[Page 285]
 
                       TITLE 47--TELECOMMUNICATION
 
        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
 
PART 64_MISCELLANEOUS RULES RELATING TO COMMON CARRIERS--Table of Contents
 
                      Subpart I_Allocation of Costs
 
Sec.  64.903  Cost allocation manuals.

    (a) Each incumbent local exchange carrier having annual revenues 
from regulated telecommunications operations that are equal to or above 
the indexed revenue threshold (as defined in Sec.  32.9000 of this 
chapter) except mid-sized incumbent local exchange carriers is required 
to file a cost allocation manual describing how it separates regulated 
from nonregulated costs. The manual shall contain the following 
information regarding the carrier's allocation of costs between 
regulated and nonregulated activities:
    (1) A description of each of the carrier's nonregulated activities;
    (2) A list of all the activities to which the carrier now accords 
incidental accounting treatment and the justification therefor;
    (3) A chart showing all of the carrier's corporate affiliates;
    (4) A statement identifying each affiliate that engages in or will 
engage in transactions with the carrier and describing the nature, terms 
and frequency of each transaction;
    (5) A cost apportionment table showing, for each account containing 
costs incurred in providing regulated services, the cost pools with that 
account, the procedures used to place costs into each cost pool, and the 
method used to apportion the costs within each cost pool between 
regulated and nonregulated activities; and
    (6) A description of the time reporting procedures that the carrier 
uses, including the methods or studies designed to measure and allocate 
non-productive time.
    (b) Each carrier shall ensure that the information contained in its 
cost allocation manual is accurate. Carriers must update their cost 
allocation manuals at least annually, except that changes to the cost 
apportionment table and to the description of time reporting procedures 
must be filed at the time of implementation. Annual cost allocation 
manual updates shall be filed on or before the last working day of each 
calendar year. Proposed changes in the description of time reporting 
procedures, the statement concerning affiliate transactions, and the 
cost apportionment table must be accompanied by a statement quantifying 
the impact of each change on regulated operations. Changes in the 
description of time reporting procedures and the statement concerning 
affiliate transactions must be quantified in $100,000 increments at the 
account level. Changes in cost apportionment tables must be quantified 
in $100,000 increments at the cost pool level. The Chief, Wireline 
Competition Bureau may suspend any such changes for a period not to 
exceed 180 days, and may thereafter allow the change to become effective 
or prescribe a different procedure.
    (c) The Commission may by order require any other communications 
common carrier to file and maintain a cost allocation manual as provided 
in this section.

[57 FR 4375, Feb. 5, 1992, as amended at 59 FR 46358, Sept. 8, 1994; 61 
FR 50246, Sept. 25, 1996; 62 FR 39779, July 24, 1997; 65 FR 16335, Mar. 
28, 2000; 67 FR 5702, Feb. 6, 2002; 67 FR 13229, Mar. 21, 2002]