[Code of Federal Regulations]
[Title 47, Volume 3]
[Revised as of October 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR65.300]

[Page 361]
 
                       TITLE 47--TELECOMMUNICATION
 
        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
 
PART 65_INTERSTATE RATE OF RETURN PRESCRIPTION PROCEDURES AND 
METHODOLOGIES--Table of Contents
 
                       Subpart C_Exchange Carriers
 
Sec. 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 Sec. 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 
Sec. 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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