82 FR 20833 - Comprehensive Review of the Uniform System of Accounts, Jurisdictional Separations and Referral to the Federal-State Joint Board
FEDERAL COMMUNICATIONS COMMISSION Federal Register Volume 82, Issue 85 (May 4, 2017)
Federal Register Volume 82, Issue 85 (May 4, 2017)
| Page Range | 20833-20843 | |
| FR Document | 2017-07175 |
[Federal Register Volume 82, Number 85 (Thursday, May 4, 2017)] [Rules and Regulations] [Pages 20833-20843] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-07175] ======================================================================= ----------------------------------------------------------------------- FEDERAL COMMUNICATIONS COMMISSION 47 CFR Parts 1, 32, and 65 [WC Docket No. 14-130, CC Docket No. 80-286; FCC 17-15] Comprehensive Review of the Uniform System of Accounts, Jurisdictional Separations and Referral to the Federal-State Joint Board AGENCY: Federal Communications Commission. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: In this document, the Federal Communications Commission (Commission) completes its proceeding to review the Uniform System of Accounts (USOA) to minimize the compliance burdens on carriers while ensuring that the agency retains access to the information it needs to fulfill its regulatory duties. DATES: The rules adopted in this document shall become effective on January 1, 2018, with the exception of amendments to Sec. Sec. 1.1409 and 32.1, which shall become effective following publication in the Federal Register of a document announcing approval by OMB of these amendments. FOR FURTHER INFORMATION CONTACT: Robin Cohn, Wireline Competition Bureau, Pricing Policy Division at (202) 418-2747 or at [email protected], or Nicole Ongele, Office of Managing Director at (202) 418-2991 or at [email protected]. SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report and Order, WC Docket No. 14-130, CC Docket 80-286; FCC 17-15, adopted February 23, 2017 and released February 24, 2017. The full text of this document may be downloaded at https://transition.fcc.gov/Daily_Releases/Daily_Business/2017/db0228/FCC-17-15A1.pdf. In this present document, we have assessed the effects of our streamlining the part 32 Uniform System of Accounts (part 32 USOA) accounting rules and find that the Commission's actions will result in overall reduced regulatory burdens for both price cap and rate-of-return carriers, including small businesses with fewer than 25 employees. In addition, the Report and Order allows price cap carriers to elect to use GAAP for all regulatory accounting purposes so long as they comply with targeted accounting rules. Because incumbent LECs subject to price cap regulation are among the largest of telecommunications companies, we do not anticipate any impact from this action on small businesses with fewer than 25 employees. [[Page 20834]] Synopsis I. Introduction 1. In this Report and Order (Order), we complete our proceeding to review our part 32 Uniform System of Accounts (USOA) to consider ways to minimize the compliance burdens on carriers while ensuring that the agency retains access to the information it needs to fulfill its regulatory duties. Section 220 of the Communications Act of 1934, as amended (the Act), authorizes the Commission to prescribe the system of accounts to be used by carriers subject to the Act, and the USOA and its predecessors have historically performed this function for regulated telephone companies. But the USOA comes with a cost: Many regulated companies must maintain two sets of books--one for financial reporting and another for regulatory purposes--with the attendant costs of additional training for accountants, creating a second set of customized accounting software, and auditing two sets of processes for compliance. 2. We now conclude that, in light of the Commission's actions in areas of price cap regulation, universal service reform, and intercarrier compensation reform, as well as the advancement of robust intermodal competition in the market for telephone services, the duty to maintain two sets of accounts is generally not necessary for price cap carriers. Moreover, with respect to all carriers, we streamline and eliminate outdated accounting rules no longer needed to fulfill our statutory or regulatory duties. By reducing the costly burden of outdated regulatory requirements placed upon carriers, today's reforms give carriers the ability to better allocate scarce resources toward expanding modern networks which are critical to bringing economic opportunity, job creation, and civic engagement to all Americans. II. Background 3. Section 220 of the Act requires the Commission to ``prescribe a uniform system of accounts for use by telephone companies.'' The Commission adopted its first accounting system in 1935 as parts 31 and 33 of the Commission's rules ``when a rigid institutionalized regulatory environment was expected to continue forever.'' In 1986, the Commission adopted the USOA contained in part 32 to respond to the ``introduction of competition and an explosion of new products and services to which the existing systems could not respond without massive modification.'' 4. The Commission intended the USOA to ``accommodate generally accepted accounting principles (GAAP) to the extent regulatory considerations permit.'' As the Commission explained: GAAP is that common set of accounting concepts, standards, procedures and conventions which are recognized by the accounting profession as a whole and upon which most nonregulated enterprises base their external financial statements and reports. It directs the recording of financial events and transactions and relates to how assets, liabilities, revenues and expenses are to be identified, measured, and reported. While part 32 specifies a chart of accounts and the types of transactions to be maintained in each account, GAAP allows companies to determine their own system of accounts subject to certain principles. 5. The Commission adopted the USOA ``at a time when regulators were required or inclined to organize telecommunications costs in a manner that allowed a logical mapping of these costs to telecommunications rate structures.'' Accordingly, the USOA was designed to complement rate-of-return regulation and the system of tariffed interstate access charges that incumbent LECs were required to follow at that time. Part 32 required carriers to record their assets, expenses, and revenues in prescribed accounts. Part 64's cost assignment rules apportioned the investment, expenses, and revenues between regulated and nonregulated activities. Part 36 prescribed rules for separating regulated investment, expenses, and revenues between the interstate and intrastate jurisdictions. Part 69 then specified how carriers were to apportion costs assigned to the interstate jurisdiction among the interexchange service category and the access categories and rate elements. In other words, the access rates carriers charged were directly tied to the costs of the carriers, and thus the accurate recording of such costs in the USOA. 6. From 1984 until 1991, virtually all interstate access services were subject to rate-of-return regulation, under which carriers' charges are set to cover an entity's regulated operating expenses and to provide the opportunity to earn a prescribed return on the capital the company uses to provide regulated services. Earnings were monitored through part 32 data that incumbent LECs filed annually through the Commission's Automated Reporting Management Information System (ARMIS). Future carriers' charges were adjusted if profit margins were above or below the prescribed rate of return. 7. In 1991, the Commission adopted price cap regulation for the largest incumbent local exchange carriers (LECs) while making it optional for other incumbents. Price cap regulation is a form of incentive regulation that relies on a series of Price Cap Indexes (PCIs) to limit the prices that these carriers charge for services to levels that are presumed to be just and reasonable. Today, more than 95 percent of access lines are served by price cap carriers. 8. Price cap regulation eliminated the direct link between changes in allocated accounting costs and changes in price, but as originally implemented, it did not sever the connection between accounting costs and prices entirely. The 1991 LEC price cap plan required earnings above prescribed levels to be shared with ratepayers and provided for upward adjustment of PCIs if earnings fell below a prescribed level. LECs were also permitted to file above-cap rates if cost-based showings demonstrated that a rate within the cap would be confiscatory. In 1997, the Commission eliminated the sharing mechanism, and in 1999, the Commission eliminated the low-end adjustment for incumbent LECs that received and exercised pricing flexibility. This had the practical effect of severing the connection between prices and the need to account for costs from a regulatory point of view. 9. In the years following passage of the Telecommunications Act of 1996, the Commission reviewed and streamlined its accounting rules on several occasions. In 1997, the Commission clarified that ``only incumbent local exchange carriers'' are subject to specific USOA requirements and other accounting rules. In 1999, the Commission ``greatly streamline[d]'' its depreciation requirements for price cap carriers, and established a waiver process whereby these carriers could obtain the ability to set their own depreciation rates in accordance with GAAP. In 2000, the Commission streamlined part 32 obligations by eliminating the expense matrix filing requirement, reducing the cost allocation manual audit requirement, relaxing certain affiliate transaction requirements for services, and eliminating the reclassification requirement for certain plant under construction. In 2001, it consolidated and streamlined Class A accounting requirements, relaxed additional aspects of the affiliate transaction rules, reduced the cost of regulatory compliance with cost allocation rules for mid- sized incumbent LECs, and reduced financial reporting requirements. And in 2008, the Commission forbore from applying its cost assignment rules and financial reporting rules to AT&T, Verizon, and Qwest, finding that its need for cost data had significantly diminished with [[Page 20835]] continuing refinement of price cap ratemaking and universal service reforms. 10. In 2012, USTelecom filed a petition pursuant to section 10 of the Act requesting that the Commission forbear from enforcing certain ``legacy telecommunications regulations.'' In the USTelecom Forbearance Order, the Commission extended the forbearance it had granted to AT&T, Verizon, and Qwest to other price cap carriers, but declined to forbear from applying the USOA to these carriers. Nevertheless, the Commission ``acknowledge[d] that further streamlining of our rules is likely appropriate,'' and promised to ``conduct a comprehensive review of the Part 32 Uniform System of Accounts'' with the aim of ``minimiz[ing] the compliance burdens of our regulations while ensuring our continued access to the relevant financial information necessary to fulfill our duties.'' 11. On September 15, 2014, the Commission published the Comprehensive Review of Uniform System of Accounts, Notice of Proposed Rulemaking, 79 FR 54942 (2014 NPRM), initiating the instant proceeding to reform its rules to ease the accounting burdens on carriers. First, the 2104 NPRM proposed to streamline the Commission's USOA accounting rules while preserving their existing structure. In this regard, the 2014 NPRM proposed to consolidate Class A and Class B accounts, to revise our rules regarding continuing property records for price cap carriers, and to better align with GAAP the USOA's asset accounting rules, its Allowance-for-Funds-Used-During-Construction (AFUDC) rules, its materiality rules, and its rules requiring that carriers submit all prior period adjustments (PPAs) and unusual or extraordinary items to the Commission for review and approval. It sought comment on whether to better align the USOA's depreciation and cost of removal-and-salvage accounting rules with GAAP. Second, the 2014 NPRM also sought focused comment on additional specific requirements that should be applied to price cap carriers. These included ``eliminating the requirement that price cap carriers comply with the USOA and imposing targeted accounting requirements that fit our specific statutory needs.'' Third, it sought comment on several related issues, including state requirements, rate effects, implementation, and legal authority. The Commission received ten comments and seven reply comments in response to the 2014 NPRM. II. Discussion 12. In this Order, we make significant revisions to our part 32 USOA accounting rules and take a number of steps to substantially reduce the accounting burdens on incumbent LECs. First, we streamline the USOA for all carriers, amending 39 rules effective January 1, 2018. Second, we allow price cap carriers to elect to use GAAP for all regulatory accounting purposes so long as they comply with targeted accounting rules. These additional reforms will eliminate burdensome accounting requirements that serve no federal purpose for electing price cap carriers. 13. The reforms we adopt herein will significantly reduce the regulatory burdens associated with maintaining separate sets of financial accounts. As previously noted, while part 32 specifies a chart of accounts and the types of transactions to be maintained in each account, GAAP allows companies to determine their own system of accounts subject to certain principles in the form of an overarching system of broad accounting guidelines that address the recording of assets, liabilities, and stockholders' equity. Further, GAAP allows carriers to record financial transactions in a manner that reflects the broader nature of the enterprise, while part 32 compliance requires carriers to maintain two separate sets of financial and accounting books for federal regulatory purposes. Commenters emphasized the burdensome nature of this requirement, which we acknowledge here. A. Streamlining the USOA 14. In this section, we adopt revisions to part 32 that significantly streamline the accounting requirements applicable to incumbent LECs. Specifically, we adopt our proposals to consolidate Class A and Class B accounts and to revise our rules regarding continuing property records for price cap carriers. We better align with GAAP the USOA's asset accounting rules, its AFUDC rules, and its materiality rules. And we decline to amend the USOA's depreciation and cost of removal-and-salvage rules. These revisions, with the exception of the continuing property records rules, will apply to all carriers subject to part 32's USOA, but not to any price cap carriers that elect to use GAAP accounting. 1. Consolidating the Class A and Class B Accounts 15. Part 32, as authorized by section 220(h) of the Act, divides incumbent LECs into two classes for accounting purposes based on annual revenues: Class A (carriers with annual revenues equal to or above $152.5 million) and Class B (smaller carriers). These rules require Class A carriers to generally maintain 138 accounts, which provide more detailed records of investment, expense, and revenue than the 80 accounts that smaller Class B carriers are required to maintain. When the Commission adopted this regime, it drew this line to ``adopt a far less burdensome system'' for smaller carriers--but one that was nevertheless sufficient to meet its statutory obligations. The Commission has gradually altered these requirements as regulatory needs and market conditions have changed. 16. We now eliminate the classification of carriers, so that all carriers subject to part 32's USOA will be required to keep only the streamlined Class B accounts and will otherwise be treated as Class B carriers for purposes of part 32. Collapsing the distinction between Class A and Class B carriers will simplify our rules and reduce the number of accounts that Class A carriers must keep by one-third. Doing so will ensure a more uniform treatment of accounts for carriers subject to the USOA, simplifying both compliance for carriers and oversight by the Commission. Furthermore, we find that eliminating Class A treatment is sufficient to meet our regulatory needs, since no rate-of-return carrier (i.e., those where cost accounting is most important) is required by the Commission's rules today to keep Class A accounts. 17. Ad Hoc disagrees, arguing that eliminating the distinction would prevent the Commission from carrying out its statutory duties. Ad Hoc argues that we should retain the Class A accounts for cable and wire facilities, depreciation, amortization, amortizable assets, and revenue reporting for the basic local exchange category that includes private line revenue because doing so has ``obvious import, both for the setting of pole and conduit rates and for the ongoing special access proceeding.'' 18. Contrary to Ad Hoc's contentions, maintenance of accounts at the Class B level, coupled with the Commission's ability to require carriers to produce additional accounting data when there is an express federal need, will enable us to ensure that Class A carriers' rates are just and reasonable and not unreasonably discriminatory. Indeed, no rate-of-return carrier currently qualifies as a Class A carrier, although the Commission's need for part 32 accounting data are unquestionably greater for carriers subject to rate-of-return regulation and legacy universal [[Page 20836]] service mechanisms that tie federal support to a carrier's reported costs. And Ad Hoc offers nothing beyond mere assertions that the rates would differ in any material way with Class B treatment, and ignores the fact that the Commission neither relied on part 32 accounts when formulating its special access data collection nor relied on any existing part 32 Class A account in the 2014 NPRM. We accordingly find Ad Hoc's assertions speculative and baseless. 19. Furthermore, we conclude that section 402(c) of the Telecommunications Act of 1996 does not prohibit us from eliminating the distinction between Class A and Class B carriers. That section states that ``[i]n classifying carriers according to section 32.11 of [the FCC's] regulations . . . the Commission shall adjust the revenue requirements to account for inflation . . . annually.'' In the 2014 NPRM, the Commission did ``not read this provision to require the Commission to classify carriers for purposes of Part 32 accounting rules, but instead to require annual adjustments so long as the Commission continues to classify carriers for these purposes.'' The only party to address this issue agreed with this interpretation. We adopt it now. 2. Continuing Property Records for Price Cap Carriers 20. In the USTelecom Forbearance Order, the Commission concluded that forbearance from the continuing property records requirements in Sec. 32.2000(e) and (f) was warranted for price cap carriers, as long as they could demonstrate in compliance plans how they would ``maintain the records necessary to track substantial assets and investment in an accurate, auditable manner that enables them to verify account balances in their Part 32 Uniform System of Accounts, make such property information available to the Commission upon request, and ensure maintenance of such data.'' In the 2014 NPRM, the Commission sought comment on memorializing these requirements in a rule. USTelecom supports requiring price cap carriers to maintain property records necessary to track substantial investments in an auditable fashion that enables verification and the ability to make such information available to the Commission upon request. These data can be maintained by utilizing GAAP, according to USTelecom. No party opposed the property records proposal advanced in the 2014 NPRM. 21. As proposed in the 2014 NPRM, we revise part 32 to require price cap carriers with a continuing part 32 accounting obligation to maintain continuing property records necessary to track substantial assets and investments in an accurate, auditable manner that enables them to verify their accounting books, make such property information available to the Commission upon request, and ensure the maintenance of such data. This rule change reflects the expectations and commitments connected with the forbearance relief we granted in the USTelecom Forbearance Order. 22. We decline at this time to require price cap carriers to file compliance plans, as proposed by the 2014 NPRM, to the extent they have not done so. No commenter addressed this issue. In the absence of record support for the proposal, we decline to adopt any compliance plan filing requirement. 3. Aligning the USOA More Closely With GAAP 23. In the 2014 NPRM, the Commission proffered several different proposals for aligning the USOA more closely with GAAP. We adopt the proposals to align with GAAP the USOA's asset accounting rules, its AFUDC rules, and its materiality rules. First, we align our definition of original cost to align with GAAP so that carriers carry an asset at its purchase price when it was acquired, even if its value has increased or has declined when it goes into regulated service. Second, we allow carriers to reprice an asset at market value after a merger or acquisition. The record is barren of evidence that these requirements for carriers to price assets differently than they would in the ordinary course of business retain any value. 24. Third, we find that using GAAP principles to determine AFUDC should be the applicable standard. We revise the rules accordingly. As the Commission noted at the time, the resulting difference in accounting is immaterial from a regulatory perspective but may increase the administrative burdens of compliance for carriers otherwise required to meet GAAP standards. 25. Fourth, we revise our rules to incorporate the concept of materiality. As USTelecom explains, ``USOA has no materiality standard and requires all transactions be booked regardless of any materiality consideration. This forces carriers to justify every accounting discrepancy, no matter how trivial and immaterial, thereby adding unnecessary costs to the preparation and audit of a carrier's accounting records.'' We agree and incorporate the GAAP standard of materiality for price cap carriers. We believe the flexible GAAP standard offers the ``case-by-case'' standard proposed by the Nevada Public Utilities Commission--and we agree with the state commission that the Commission will ``ultimately be[] the arbiter'' of whether a carrier has complied with GAAP's materiality standard. 26. We also agree with Alexicon that ``it would be beneficial to NECA and its pool members if the Commission adopted a definition of materiality that provided guidance related to NECA's review procedures.'' Indeed, more particular guidance may be especially important for carriers receiving legacy universal service support because federal support is tied to the reported costs of such carriers. We adopt the general materiality guidelines promulgated by the Auditing Standards Board. Materiality levels are in large part a matter of professional judgment, and according to generally accepted auditing standards, may consider such factors as: (1) The elements of the financial statements (for example, assets, liabilities, equity, income, and expenses) and the financial statement measures defined in generally accepted accounting principles (for example, financial position, financial performance, and cash flows), or other specific requirements; (2) Where there are financial statement items on which, for the particular entity, users' attention tends to be focused (for example, for the purpose of evaluating financial performance); (3) The nature of the entity and the industry in which it operates; and (4) The size of the entity, nature of its ownership, and the way it is financed. Because independent auditors are required to undertake assessments of materiality and risk in all audit engagements, their judgment can and should be relied upon when determining materiality levels for purposes of regulatory reporting and review. 27. In contrast, we decline at this time to revise the USOA's depreciation procedures or its rules for cost of removal-and-salvage accounting. As the Rural Associations argue, and we agree, revising USOA's depreciation rules might result in unpredictable changes in rates and universal service funding mechanisms--potentially rendering universal service support unpredictable absent further study. And we find the record too spare to quell the concern we recognized in the 2014 NPRM that changing the USOA's rules for cost of removal-and- salvage accounting could have a significant impact on pole attachment rates. [[Page 20837]] 28. We are unconvinced that the generic opposition in the record to the wholesale adoption of GAAP for rate-of-return carriers warrants rejecting the targeted reforms we adopt in this Section. Nor are we convinced by the Rural Associations' argument that no changes should be made to the USOA for rate-of-return carriers. The association does not identify any of the reforms we are adopting as significant, nor do we find based on the record any reason to think that these paperwork- reducing reforms will not be beneficial to rural carriers. Further, we do not anticipate any significant rate effects resulting from these efforts to further align the USOA with GAAP principles. B. Elective Use of Targeted Accounting Rules for Price Cap Carriers 29. In the 2014 NPRM, the Commission sought comment on either maintaining the USOA for price cap carriers or replacing it with a more limited set of accounting rules targeted to our particular statutory needs. Based on developments in the market and the nature of telephone rate regulation, and in light of the record before us, we conclude that we should let price cap carriers elect to use targeted accounting rules in lieu of the strictures and the second set of books required by the USOA. 30. Indeed, all evidence in the record demonstrates that continued application of the USOA to price cap carriers is a substantial and unjustifiable burden. ACS, for example, ``incurs substantial and ongoing costs maintaining an entire second set of account books that meet the requirements of the USOA. The information they contain has no bearing on ACS's corporate planning, financial results, or service rates.'' CenturyLink appends to its comments an appendix of the separate accounting entries it must maintain to comply with USOA and notes the ``over 400 GAAP specific account codes'' it must document so that its accountants can translate entries from one set of books to the other. And AT&T explains how it must pay software engineers up to $24 million a year to ``bolt on'' changes to vendor general ledger packages and to maintain the USOA on top of its existing GAAP-compliant accounts. 31. We conclude that none of the three particular statutory obligations nor the regulatory requirement identified in the 2014 NPRM justify the requirement that price cap carriers comply with the USOA. Instead, we conclude that price cap carriers may elect to comply with GAAP accounting, subject to a commitment to mitigate any impact election would have on pole attachment rates. We address these four issues in turn. 32. Pole Attachment Rates. Section 224 of the Act allows state commissions to regulate pole attachment rates so long as they certify to the Commission that they will do so; elsewhere, the Commission's rules apply. Under the Commission's rules, pole attachment rates are set in the first instance through private negotiation using cost data reported by carriers. Because many poles and conduits are owned by electric or other utilities not regulated by the Commission, our rules do not require all pole attachments to be based on USOA data, but instead require that the ``data and information should be based upon historical or original methodology'' and ``should be derived from ARMIS, FERC 1, or other reports filed with state or federal regulatory agencies.'' For incumbent LECs, however, the Commission has relied on data from ``various Part 32 accounts (e.g., gross pole investment, gross plant investment, accumulated depreciation--poles, maintenance expense--poles etc.).'' And the Commission has used the USOA data to modify the formula by which pole attachment rates are calculated. 33. USTelecom and AT&T contend that for price cap carriers, the use of a rate-of-return-based formula for pole attachments does not preclude the use of GAAP. Verizon agrees with USTelecom, contending that the formulae used to derive pole attachment rates could be populated with GAAP-based data. USTelecom also argues that there is no evidence that relying upon GAAP would alter rates price cap carriers charge for pole attachments, while AT&T contends that there is no basis to believe that pole attachment rates calculated based on GAAP accounting would not be just and reasonable. ACS also supports allowing price cap carriers to use GAAP. CenturyLink proposes to address concerns about possible harms to pole attachment users during a transition to the use of GAAP by capping pole attachment rates at their current levels plus an annual inflation adjustment in states subject to federal regulation, except to the extent that rate increases are justified. On the other hand, NCTA urges the Commission to continue compliance with part 32 accounting in connection with pole attachment data, while NASUCA argues that targeted accounting requirements would be more complicated and costly than maintaining the current mechanisms. 34. We find that USOA accounting data are not necessary for the continued development of pole attachment rates in accordance with the statute. Nothing in section 224 directs or requires us to rely on the USOA, and we see no reason to subject one set of pole and conduit owners to onerous accounting obligations just because they happen to operate in a federal-default state or happened to have provided telephone service 21 years ago. Nor is there any reason to think the continued maintenance of USOA data for pole attachments is necessary for any future reforms. The Commission successfully collected data from hundreds of carriers on demand in the special access proceeding, and it could require similar disclosure of pole attachment costs if the need should arise. 35. Nonetheless, we share the concern of some commenters that a change in accounting rules could lead to rate shock--a large swing in rates as price cap carriers transition from one accounting system to another. This possible rate differential is due to a number of factors, such as depreciation rates, cost of removal, and return on investment. Pole attachment rates play a significant role in the deployment and availability of voice, video, and data networks, and sharp changes in pole attachment rates may distort infrastructure investment decisions and in turn could negatively affect the availability of advanced services and broadband, contrary to the policy goals of the Act. 36. As such, we condition any price cap carrier's election of GAAP accounting on compliance with one of two framework options to mitigate any disruption in pole attachment rates from the election. The first option is for electing carriers to calculate an Implementation Rate Difference between the attachment rates calculated by the price cap carrier under the USOA and under GAAP as of the last full year preceding the carrier's initial opting-out of part 32 USOA accounting requirements. We further require electing carriers to adjust their annually computed GAAP-based rates by the Implementation Rate Difference for a period of 12 years after the election. This framework largely parallels the plan offered by industry representatives to mitigate any pole attachment rate increases due to fluctuations and timing differences associated with the treatment of depreciation rates, the cost of removal, and salvage when GAAP is utilized instead of part 32. It relies on the half-life of a typical pole to establish the 12- year term (as a means of ensuring against double recovery). We find this option is an appropriate means of mitigating rate shock to attaching ISPs [[Page 20838]] while still allowing the price cap carrier to shed its USOA obligations. 37. As a second option, price cap carriers may comply with GAAP accounting for all purposes other than those associated with setting pole attachment rates while continuing to use the part 32 accounts and procedures necessary to establish and evaluate pole attachment rates. Carriers have a period of 12 years in which they can opt into GAAP accounting for pole attachment rates and would be required to utilize the Implementation Rate Difference for the remaining portion of the 12 years after they have chosen to move to GAAP accounting. We find that this approach offers flexibility for price cap carriers who do not wish to immediately transition to GAAP for purposes of setting pole attachment rates. 38. We emphasize that a shift in accounting methodology (here, from USOA to GAAP) does not change what costs may be included in pole attachment rates--instead, it changes only how and when those costs are recognized. We thus expect that shifting the accounting method is unlikely to result in abrupt changes in pole attachment rates in the near term, and that rates will remain steady over the long-run. Price cap carriers have explained that shifting accounting methods is ``not an effort to increase pole attachment rates'' and ``not an attempt to do some other rate- or cost-shifting,'' and we intend to monitor pole attachment rates and hold them to that promise. 39. Finally, to facilitate transparency of pole attachment rates during the transition from USOA to GAAP, a pole attacher may request that a price cap carrier submit its pole attachment accounting data for a particular state to this Commission for three years following the effective date of the rule permitting a price cap carrier to elect GAAP accounting. Thus, if a pole attacher informs the Commission of a suspected problem with pole attachment rates, the Commission will require the price cap carrier to file its pole attachment data for the state in question. This requirement will assist the parties and the Commission in monitoring and evaluating any abrupt rate changes that may occur. If it proves necessary, the Commission may extend this obligation for an additional three years. 40. Other Issues. We conclude that USOA accounting data is unnecessary to ensure compliance with section 254(k) of the Act, which prohibits a telecommunications carrier from ``us[ing] services that are not competitive to subsidize services that are subject to competition.'' As the 2014 NPRM explained, the Commission has never found it necessary to seek accounting data to address allegations of violations of section 254(k). In other words, USOA data have not been needed to ensure compliance with section 254(k), even right after the end of legal telephone service monopolies in the late 1990s. Given the advent of even more intermodal competition, we do not foresee a need for USOA data to resolve any section 254(k) violations going forward. 41. The Commission also sought comment on whether the harm intended to be addressed by section 272(e)(3) continues to be a concern, or whether the Commission should consider forbearing from this requirement. In the record, the BOCs primarily focused on alternatives to antiquated part 32 accounting, rather than addressing forbearance from section 272(e)(3). In evaluating the lack of utility of part 32 accounting rules, our attention is also focused on regulatory requirements such as section 272(e)(3) that, similar to the USOA, have outgrown their usefulness. 42. Before 1996, the BOCs were prohibited from entering the long- distance market (i.e., from offering interexchange service) out of concern that they could use their local monopoly to subsidize competitive operations in the long-distance market. The Telecommunications Act created a path for the BOCs to enter that market, requiring, among other things, that a BOC that offers its long- distance service to ``impute to itself . . . an amount for access to its telephone exchange service and exchange access that is no less than the amount charged to any unaffiliated interexchange carriers for such service.'' 43. We conclude that we should forbear from the continued application of section 272(e)(3)'s imputation requirements. No party commented on whether the Commission should forbear. The rationales for removing the accounting requirements associated with section 272(e)(3) are equally applicable to considerations of forbearing from the requirements of the subsection completely. In the USF/ICC Transformation Order, the Commission placed terminating intercarrier compensation charges on a path toward bill-and-keep, which greatly diminishes the need for imputation charges. Furthermore, many other entities provide integrated long-distance service, such as non-BOC LECs, cable operators, over-the-top voice over Internet Protocol companies, and commercial mobile radio service providers; these entities are not required to impute charges between their local and long-distance affiliates (to the extent they even offer those services through separate affiliates). In the last 20 years, increased competition in access markets as a result of legislative, regulatory, and technological changes has reduced the need for section 272 imputation requirements to prevent cross-subsidization between incumbent LECs' local and long distance services. Thus, continued enforcement of the section 272(e)(3) imputation requirements is not necessary to ensure that the charges, practices, classifications, or regulations by, for, or in connection with that telecommunications carrier or telecommunications service are just and reasonable and are not unjustly or unreasonably discriminatory. Given these changes in the regulatory landscape and the diminished importance of imputation requirements to prevent marketplace harms, section 272(e)(3) is not necessary for the protection of consumers, and forbearance will be in the public interest. Accordingly, we determine that forbearing from the continued application of these requirements is appropriate. 44. Finally, we terminate the conditions that the Commission placed on a variety of carriers granted forbearance from our cost allocation rules. Forbearance was expressly premised on the continued availability of part 32 accounting data and the filing of compliance plans consistent with that condition. AT&T, Qwest and Verizon filed compliance plans that detailed their commitment to continue to maintain part 32 accounting data. In the 2014 NPRM, the Commission invited parties to comment on how changes to the part 32 requirements would affect the commitments made in compliance plans filed in connection with forbearance proceedings. Commenters directly addressing this issue support the action taken herein. Although we speculated in 2013 that ``there may be a `federal need for this accounting information in the future to adjust our existing price cap regime or in our consideration of reforms moving forward,''' time has proven that prediction untrue. And continuing to maintain these costly requirements on the speculation that at some point, some day, the Commission might do something with them fails any cost-benefit analysis. C. Other Considerations 45. We decline requests to reconsider other deregulatory actions by the Commission in this proceeding. NASUCA broadly argues that it opposes [[Page 20839]] the rationale behind the 2014 NPRM because the Commission has already minimized the compliance burden below the level needed for its regulatory duties, and urges the Commission to reverse course on other information requirements, pointing to ARMIS forbearance and other recent forbearance decisions. The issues NASUCA raises are rejected as being overly vague and beyond the scope of the 2014 NPRM. In any event, NASUCA has not presented sufficient support for its arguments to allow the Commission to act on these requests, instead merely stating its objections to the proposed reforms in a conclusory manner and failing to suggest concrete alternative solutions. IV. Referral to the Joint Board 46. We recognize that eliminating the distinctions between Class A and Class B accounts and allowing all carriers to utilize the more streamlined requirements of Class B accounts has implications for the Commission's jurisdictional separations rules pursuant to part 36. For instance, many of the separations rules also designate accounts by Class A and Class B categories, and those rules likely would need to be modified to be consistent with the revised part 32 regulations. Accordingly, pursuant to section 410(c) of the Act, we refer to the Joint Board the issue of examining jurisdictional separations rules in light of the reforms adopted to the part 32 regulations in this Report and Order. We ask the Joint Board to consider the reforms adopted in this Report and Order and to consider how such reforms impact part 36 and consequently the rule changes necessary to ensure the jurisdictional separations rules are consistent. We request that the Joint Board prepare a recommended decision within nine months of publication in the Federal Register regarding how and when the Commission's jurisdictional separations rules should be modified to reflect the issues in the referral. V. Procedural Matters A. Final Regulatory Flexibility Analysis 47. As required by the Regulatory Flexibility Act of 1980 (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was incorporated into the 2014 NPRM. The Commission sought written public comment on the possible significant economic impact on small entities regarding the proposals in the 2014 NPRM, including comments on the IRFA. Pursuant to the RFA, a Final Regulatory Flexibility Analysis (FRFA) is set forth in Appendix C of the Commission's Report and Order, WC Docket No. 14-130, CC Docket No. 80-286; FCC 17-15, adopted February 23, 2017 and released February 24, 2017. B. Final Paperwork Reduction Act Analysis 48. This document contains modified information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. The requirements will be submitted to the Office of Management and Budget (OMB) for review under Section 3507(d) of the PRA. OMB, the general public, and other Federal agencies are invited to comment on the modified information collection requirements contained in this proceeding. In addition, we note that pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4), we previously sought specific comment on how the Commission might further reduce the information collection burden for small business concerns with fewer than 25 employees. 49. In this present document, we have assessed the effects of our streamlining the part 32 USOA accounting rules and find that the Commission's actions will result in overall reduced regulatory burdens for both price cap and rate-of-return carriers, including small businesses with fewer than 25 employees. In addition, the Report and Order allows price cap carriers to elect to use GAAP for all regulatory accounting purposes so long as they comply with targeted accounting rules. Because incumbent LECs subject to price cap regulation are among the largest of telecommunications companies, we do not anticipate any impact from this action on small businesses with fewer than 25 employees. C. Congressional Review Act 50. The Commission will send a copy of this Report and Order in a report to be sent to Congress and the Government Accountability Office pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A). VI. Ordering Clauses 51. Accordingly, it is ordered that, pursuant to the authority contained in sections 10, 201, 219-220, 224, 254(k), 272(e)(3), and 403 of the Communications Act of 1934, as amended, 47 U.S.C. 160, 201, 219- 220, 224, 254(k), 272(e)(3), 403, this Report and Order is adopted. 52. It is further ordered that, pursuant to the authority contained in sections 10, 201, 219-220, 224, 254(k), 272(e)(3), and 403 of the Communications Act of 1934, as amended, 47 U.S.C. 160, 201, 219-220, 224, 254(k), 272(e)(3), 403, 47 CFR parts 1, 32, and 65, are amended, effective on a date (``Effective Date'') following publication in the Federal Register of a document announcing approval by the Office of Management and Budget (OMB) of these rules, which contain requirements involving Paperwork Reduction Act burdens, or on January 1, 2018, whichever is later, with the exception of amendments to Sec. Sec. 1.1409 and 32.1, which the Effective Date shall be following publication in the Federal Register of a document announcing approval by OMB of these amendments. 53. It is further ordered that the Commission shall send a copy of this Report and Order to Congress and the Government Accountability Office pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A). 54. It is further ordered that the Commission's Consumer and Governmental Affairs Bureau, Reference Information Center, shall send a copy of this Report and Order, including the Final Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administration. 55. It is further ordered that, pursuant to section 410(c) of the Communications Act of 1934 as amended, 47 U.S.C. 410(c), the issues specified in Section IV of this Report and Order are hereby referred to the Federal-State Joint Board on Separations for preparation of a recommended decision to be produced within nine months of publication in the Federal Register. 56. It is further ordered that, should no petitions for reconsideration, applications for review, or petitions for judicial review be timely filed, this proceeding shall be terminated and its docket closed. List of Subjects in 47 CFR Parts 1, 32, and 65 Communications common carriers, Reporting and recordkeeping requirements, Telephone, Uniform system of accounts. Federal Communications Commission. Marlene H. Dortch, Secretary. Final Rules For the reasons discussed in the preamble, the Federal Communications Commission amends 47 CFR parts 1, 32, and 65 as follows: PART 1--PRACTICE AND PROCEDURE 0 1. The authority citation for part 1 is revised to read as follows: [[Page 20840]] Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(j), 160, 201, 225, 303, and 309. 0 2. Section 1.791 is revised to read as follows: Sec. 1.791 Reports and requests to be filed under part 32 of this chapter. Reports and requests shall be filed either periodically, upon the happening of specified events, or for specific approval by telephone companies in accordance with and subject to the provisions of part 32 of this chapter. 0 3. Section 1.1409 is amended by adding paragraph (g) to read as follows: Sec. 1.1409 Commission consideration of the complaint. * * * * * (g) A price cap company opting-out of part 32 of this chapter may calculate attachment rates for its poles, conduits, and rights of way using either part 32 accounting data or GAAP accounting data. A price cap company using GAAP accounting data to compute rates to attach to its poles, conduits, and rights of way in any of the first twelve years after opting-out must adjust (increase or decrease) its annually computed GAAP-based rates by an Implementation Rate Difference for each of the remaining years in the period. The Implementation Rate Difference means the difference between attachment rates calculated by the price cap carrier under part 32 and under GAAP as of the last full year preceding the carrier's initial opting-out of part 32 USOA accounting requirements. PART 32--UNIFORM SYSTEM OF ACCOUNTS FOR TELECOMMUNICATIONS COMPANIES 0 4. The authority citation for part 32 is revised to read as follows: Authority: 47 U.S.C. 219, 220 as amended, unless otherwise noted. 0 5. Section 32.1 is revised to read as follow: Sec. 32.1 Background. The revised Uniform System of Accounts (USOA) is a historical financial accounting system which reports the results of operational and financial events in a manner which enables both management and regulators to assess these results within a specified accounting period. The USOA also provides the financial community and others with financial performance results. In order for an accounting system to fulfill these purposes, it must exhibit consistency and stability in financial reporting (including the results published for regulatory purposes). Accordingly, the USOA has been designed to reflect stable, recurring financial data based to the extent regulatory considerations permit upon the consistency of the well established body of accounting theories and principles commonly referred to as generally accepted accounting principles (GAAP). Price cap companies that have opted-out of USOA requirements pursuant to the conditions specified by the Commission in Sec. 32.11(g) are relieved of the rules of this part in their entirety, including any other rules or orders that are derivative of or dependent on the rules in this part. Sec. 32.3 [Removed and Reserved] 0 6. Section 32.3 is removed and reserved. 0 7. Section 32.11 is amended by revising the section heading and paragraph (a), removing and reserving paragraphs (b) though (f), and adding paragraph (g) to read as follows: Sec. 32.11 Companies subject to this part. (a) This part applies to every incumbent local exchange carrier, as defined in section 251(h) of the Communications Act, and any other carrier that the Commission designates by order. This part refers to such carriers as ``companies'' or ``Class B companies.'' Incumbent local exchange carriers' successor or assign companies, as defined in section 251(h)(1)(B)(ii) of the Communications Act, that are found to be non-dominant by the Commission, will not be subject to this Uniform System of Accounts. * * * * * (g) Notwithstanding paragraph (a) of this section, a price cap company that elects to calculate its pole attachment rates pursuant to Sec. 1.1409(g) of this chapter will not be subject to this Uniform System of Accounts. 0 8. Section 32.26 is revised to read as follows: Sec. 32.26 Materiality. (a) Except as provided in paragraph (b) of this section, companies may abide by the materiality standards of GAAP when implementing this system of accounts. (b) For companies that receive High-Cost Loop Support, or Connect America Fund Broadband Loop Support, materiality shall be determined consistent with the general materiality guidelines promulgated by the Auditing Standards Board. 0 9. Section 32.101 is amended by revising paragraph (c) to read as follows: Sec. 32.101 Structure of the balance sheet accounts. * * * * * (c) Account 3100, Accumulated depreciation through Account 3400, Accumulated amortization--tangible, shall include the asset reserves except that reserves related to certain asset accounts will be included in the asset account. (See Sec. Sec. 32.2005, 32.2682 and 32.2690.) * * * * * 0 10. Section 32.103 is revised to read as follows: Sec. 32.103 Balance sheet accounts for other than regulated-fixed assets to be maintained. Balance sheet accounts to be maintained by companies for other than regulated-fixed assets are indicated as follows: Balance Sheet Accounts ------------------------------------------------------------------------ Account title ------------------------------------------------------------------------ Current assets Cash and equivalents........................ 1120 Receivables................................. 1170 Allowance for doubtful accounts............. 1171 Supplies: Material and supplies..................... 1220 Prepayments................................. 1280 Other current assets........................ 1350 Noncurrent assets Investments: Nonregulated investments.................. 1406 Other noncurrent assets................... 1410 Deferred charges: Deferred maintenance, retirements and 1438 other deferred charges. Other: Other jurisdictional assets-net........... 1500 ------------------------------------------------------------------------ 0 11. Section 32.2000 is amended by: 0 a. Removing and reserving paragraph (a)(4); 0 b. Revising paragraphs (b)(1), (b)(2)(iii), and (c)(2)(x); 0 c. Adding paragraph (e)(8); and 0 d. Revising paragraphs (f)(2)(iii) and (j). The revisions and addition read as follows: Sec. 32.2000 Instructions for telecommunications plant accounts. (a) * * * (4) [Reserved] (b) * * * (1) Property, plant and equipment acquired from an entity, whether or not affiliated with the accounting company, shall be accounted for at original cost, except that property, plant and equipment acquired from a nonaffiliated entity through an acquisition or merger may be accounted for at market value at the time of the acquisition or merger. (2) * * * (iii) Accumulated Depreciation and amortization balances related to plant [[Page 20841]] acquired shall be credited to Account 3100, Accumulated depreciation, or Account 3200, Accumulated depreciation--held for future telecommunications use, or Account 3400, Accumulated amortization-- tangible and debited to Account 1438. Accumulated amortization balances related to plant acquired which ultimately is recorded in Accounts 2005, Telecommunications plant adjustment, Account 2682, Leasehold improvements, or Account 2690, Intangibles shall be credited to these asset accounts, and debited to Account 1438. * * * * * (c) * * * (2) * * * (x) Allowance for funds used during construction (``AFUDC'') provides for the cost of financing the construction of telecommunications plant. AFUDC shall be charged to Account 2003, Telecommunications plant under construction, and credited to Account 7300, Nonoperating income and expense. The rate for calculating AFUDC shall be determined in accordance with GAAP when implementing this system of accounts. The amount of interest cost capitalized in an accounting period shall not exceed the total amount of interest cost incurred by the company in that period. * * * * * (e) * * * (8) Notwithstanding any other provision of this part concerning continuing property records, carriers subject to price cap regulations set forth in part 61 of this chapter shall maintain property records necessary to track substantial assets and investments in an accurate, auditable manner that enables them to verify their accounting books, make such property information available to the Commission upon request, and ensure the maintenance of such data. (f) * * * (2) * * * (iii) The continuing property record shall reveal the description, location, date of placement, the essential details of construction, and the original cost (note also paragraph (f)(3) of this section) of the property record units. The continuing property records shall be compiled on the basis of original cost (or other book cost consistent with this system of accounts) and maintained in such manner as will provide for the verification of property record units by physical examination. The continuing property record and other underlying records of construction costs shall be so maintained that, upon retirement of one or more retirement units or of minor items without replacement when not included in the costs of retirement units, the actual cost or a reasonably accurate estimate of the cost of the plant retired can be determined. * * * * * (j) Plant accounts to be maintained by telephone companies as indicated: ------------------------------------------------------------------------ Account title ------------------------------------------------------------------------ Regulated plant Property, plant and equipment: Telecommunications plant in service....... \1\ 2001 Property held for future 2002 telecommunications use. Telecommunications plant under 2003 construction-short term. Telecommunications plant adjustment....... 2005 Nonoperating plant........................ 2006 Goodwill.................................. 2007 Telecommunications plant in service (TPIS) TPIS--General support assets: Land and support assets................... 2110 TPIS--Central Office assets: Central Office--switching................. 2210 Operator systems.......................... 2220 Central Office--transmission.............. 2230 TPIS--Information origination/termination assets: Information origination termination....... 2310 TPIS--Cable and wire facilities assets: Cable and wire facilities................. 2410 TPIS--Amortizable assets: Amortizable tangible assets............... 2680 Intangibles............................... 2690 ------------------------------------------------------------------------ \1\ Balance sheet summary account only. 0 12. Section 32.2110 is revised to read as follows: Sec. 32.2110 Land and support assets. This account shall be used by companies to record the original cost of land and support assets of the type and character detailed in Accounts 2111 through 2124. 0 13. Section 32.2210 is revised to read as follows: Sec. 32.2210 Central office--switching. This account shall be used by companies to record the original cost of switching assets of the type and character detailed in Accounts 2211 through 2212. 0 14. Section 32.2230 is revised to read as follows: Sec. 32.2230 Central office--transmission. This account shall be used by companies to record the original cost of radio systems and circuit equipment of the type and character detailed in Accounts 2231 and 2232. 0 15. Section 32.2310 is revised to read as follows: Sec. 32.2310 Information origination/termination. This account shall be used by companies to record the original cost of information origination/termination equipment of the type and character detailed in Accounts 2311 through 2362. 0 16. Section 32.2410 is revised to read as follows: Sec. 32.2410 Cable and wire facilities. This account shall be used by companies to record the original cost of cable and wire facilities of the type and character detailed in Accounts 2411 through 2441. 0 17. Section 32.2680 is revised to read as follows: Sec. 32.2680 Amortizable tangible assets. This account shall be used by companies to record amounts for property acquired under capital leases and the original cost of leasehold improvements of the type of character detailed in Accounts 2681 and 2682. Sec. 32.2682 [Amended] 0 18. Section 32.2682 is amended by removing the last sentence in paragraph (c). Sec. 32.2690 [Amended] 0 19. Section 32.2690 is amended by removing and reserving paragraph (b). 0 20. Section 32.3000 is revised to read as follows: Sec. 32.3000 Instructions for balance sheet accounts--depreciation and amortization. (a) Depreciation and amortization subsidiary records. (1) Subsidiary record categories shall be maintained for each class of depreciable telecommunications plant in Account 3100 for which there is a prescribed depreciation rate. (See also Sec. 32.2000(g)(1)(iii).) (2) Subsidiary records shall be maintained for Accounts 2005, 2682, 2690, 3400 in accordance with Sec. 32.2000(h)(4). (b) Depreciation and amortization accounts to be maintained by telephone companies, as indicated. ------------------------------------------------------------------------ Account title ------------------------------------------------------------------------ Depreciation and amortization: Accumulated depreciation.................. 3100 Accumulated depreciation--Held for future 3200 telecommunications use. Accumulated depreciation--Nonoperating.... 3300 Accumulated depreciation--Tangible........ 3400 ------------------------------------------------------------------------ [[Page 20842]] 0 21. Section 32.3400 is amended by revising paragraph (a) introductory text to read as follows: Sec. 32.3400 Accumulated amortization--tangible. (a) This account shall include: * * * * * 0 22. Section 32.3999 is revised to read as follows: Sec. 32.3999 Instructions for balance sheet accounts--liabilities and stockholders' equity. Liabilities and Stockholders' Equity Accounts To Be Maintained by Companies ------------------------------------------------------------------------ Account title ------------------------------------------------------------------------ Current liabilities: Current accounts and notes payable........ 4000 Customer's Deposits....................... 4040 Income taxes--accrued..................... 4070 Other taxes--accrued...................... 4080 Net Current Deferred Nonoperating Income 4100 Taxes. Net Current Deferred Nonoperating Income 4110 Taxes. Other current liabilities................. 4130 Long-term debt: Long Term debt and Funded debt............ 4200 Other liabilities and deferred credits: Other liabilities and deferred credits.... 4300 Unamortized operating investment tax 4320 credits--net. Unamortized nonoperating investment tax 4330 credits--net. Net noncurrent deferred operating income 4340 taxes. Net deferred tax liability adjustments.... 4341 Net noncurrent deferred nonoperating 4350 income taxes. Deferred tax regulatory adjustments--net.. 4361 Other jurisdictional liabilities and 4370 deferred credits--net. Stockholder's equity: Capital stock............................. 4510 Additional paid-in capital................ 4520 Treasury stock............................ 4530 Other capital............................. 4540 Retained earnings......................... 4550 ------------------------------------------------------------------------ 0 23. Section 32.4999 is amended by revising paragraphs (f) and (n) to read as follows: Sec. 32.4999 General. * * * * * (f) Subsidiary records--jurisdictional subdivisions and interconnection. Subsidiary record categories shall be maintained in order that the company may separately report revenues derived from charges imposed under intrastate, interstate and international tariff filings. Such subsidiary record categories shall be reported as required by part 43 of this chapter. * * * * * (n) Revenue accounts to be maintained. ------------------------------------------------------------------------ Account title ------------------------------------------------------------------------ Local network services revenues: Basic local service revenue............... Network access service revenues: End user revenue.......................... 5081 Switched access revenue................... 5082 Special access revenue.................... 5083 Long distance network services revenues: Long distance message revenue............. 5100 Miscellaneous revenues: Miscellaneous revenue..................... 5200 Nonregulated revenues: Nonregulated operating revenue............ 5280 Uncollectible revenues: Uncollectible revenue..................... 5300 ------------------------------------------------------------------------ 0 24. Section 32.5000 is revised to read as follows: Sec. 32.5000 Basic local service revenue. Companies shall use this account for revenues of the type and character detailed in Accounts 5001 through 5060. 0 25. Section 32.5200 is amended by revising the introductory text to read as follows: Sec. 32.5200 Miscellaneous revenue. This account shall include revenue derived from the following sources, as well as revenue of the type and character detailed in Account 5230, Directory revenue. * * * * * 0 26. Section 32.5999 is amended by revising paragraph (g) to read as follows: Sec. 32.5999 General. * * * * * (g) Expense accounts to be maintained. ------------------------------------------------------------------------ Account title ------------------------------------------------------------------------ Income Statement Accounts Plant specific operations expense: Network support expense................... 6110 General support expenses.................. 6120 Central office switching expense.......... 6210 Operators system expense.................. 6220 Central office transmission expenses...... 6230 Information origination/termination 6310 expense. Cable and wire facilities expenses........ 6410 Plant nonspecific operations expense: Other property plant and equipment 6510 expenses. Network operations expenses............... 6530 Access expense............................ 6540 Depreciation and amortization expenses.... 6560 Customer operations expense: Marketing................................. 6610 Services.................................. 6620 Corporate operations expense: General and administrative................ 6720 Provision for uncollectible notes 6790 receivable. ------------------------------------------------------------------------ 0 27. Section 32.6110 is revised to read as follows: Sec. 32.6110 Network support expenses. (a) Companies shall use this account for expenses of the type and character detailed in Accounts 6112 through 6114. (b) Credits shall be made to this account by companies for amounts transferred to Construction and/or other Plant Specific Operations Expense accounts. These amounts shall be computed on the basis of direct labor hours. 0 28. Section 32.6120 is revised to read as follows: Sec. 32.6120 General support expenses. Companies shall use this account for expenses of the type and character detailed in Accounts 6121 through 6124. 0 29. Section 32.6230 is amended to read: Sec. 32.6230 Central office transmission expense. Companies shall use this account for expenses of the type and character detailed in Accounts 6231 and 6232. 0 30. Section 32.6310 is revised to read as follows: Sec. 32.6310 Information origination/termination expenses. Companies shall use this account for expenses of the type and character detailed in Accounts 6311 through 6362. 0 31. Section 32.6410 is revised to read as follows: Sec. 32.6410 Cable and wire facilities expenses. Companies shall use this account for expenses of the type and character detailed in Accounts 6411 through 6441. 0 32. Section 32.6510 is revised to read as follows: Sec. 32.6510 Other property, plant and equipment expenses. Companies shall use this account for expenses of the type and character detailed in Accounts 6511 and 6512. [[Page 20843]] 0 33. Section 32.6530 is revised to read as follows: Sec. 32.6530 Network operations expense. Companies shall use this account for expenses of the type and character detailed in Accounts 6531 through 6535. 0 34. Section 32.6560 is revised to read as follows: Sec. 32.6560 Depreciation and amortization expenses. Companies shall use this account for expenses of the type and character detailed in Accounts 6561 through 6565. 0 35. Section 32.6610 is revised to read as follows: Sec. 32.6610 Marketing. Companies shall use this account for expenses of the type and character detailed in Accounts 6611 through 6613. 0 36. Section 32.6620 is revised to read as follows: Sec. 32.6620 Services. Companies shall use this account for expenses of the type and character detailed in Accounts 6621 through 6623. 0 37. Section 32.6999 is revised to read as follows: Sec. 32.6999 General. (a) Structure of the other income accounts. The other income accounts are designed to reflect both operating and nonoperating income items including taxes, extraordinary items and other income and expense items not properly included elsewhere. (b) Other income accounts listing. ------------------------------------------------------------------------ Account title ------------------------------------------------------------------------ Other operating income and expense: Other operating income and expense........ 7100 Operating taxes: Operating taxes........................... 7200 Nonoperating income and expense: Nonoperating income and expense........... 7300 Nonoperating taxes: Nonoperating taxes........................ 7400 Interest and related items: Interest and related items................ 7500 Extraordinary items....................... 7600 Jurisdictional differences and non-regulated income items: Income effect of jurisdictional ratemaking 7910 difference--net. Nonregulated net income................... 7990 ------------------------------------------------------------------------ 0 38. Section 32.7200 is revised to read as follows: Sec. 32.7200 Operating taxes. Companies shall use this account for operating taxes of the type and character detailed in Accounts 7210 through 7250. 0 39. Section 32.9000 is amended by revising the definition of ``Original cost'' to read as follows: Sec. 32.9000 Glossary of terms. * * * * * Original cost or cost, as applied to telecommunications plant, rights of way and other intangible property, means the actual money cost of (or the current money value of any consideration other than money exchanged for) property at the time when it was purchased. * * * * * PART 65--INTERSTATE RATE OF RETURN PRESCRIPTION, PROCEDURES, AND METHODOLOGIES 0 40. The authority citation for part 65 continues to read as follows: Authority: 47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220, 254, 303(r), 403, and 1302 unless otherwise noted. 0 41. The heading for part 65 is revised to read as set forth above. 0 42. Section 65.810 is revised to read as follows: Sec. 65.810 Definitions. As used in this subpart ``account xxxx'' means the account of that number kept in accordance with the Uniform System of Accounts for Telecommunications Companies in 47 CFR part 32. 0 43. Section 65.820 is amended by revising paragraph (d) to read as follows: Sec. 65.820 Included items. * * * * * (d) Cash working capital. The average amount of investor-supplied capital needed to provide funds for a carrier's day-to-day interstate operations. Carriers may calculate a cash working capital allowance either by performing a lead-lag study of interstate revenue and expense items or by using the formula set forth in paragraph (e) of this section. Carriers, in lieu of performing a lead-lag study or using the formula in paragraph (e) of this section, may calculate the cash working capital allowance using a standard allowance which will be established annually by the Chief, Wireline Competition Bureau. When either the lead-lag study or formula method is used to calculate cash working capital, the amount calculated under the study or formula may be increased by minimum bank balances and working cash advances to determine the cash working capital allowance. Once a carrier has selected a method of determining its cash working capital allowance, it shall not change to an optional method from one year to the next without Commission approval. * * * * * [FR Doc. 2017-07175 Filed 5-3-17; 8:45 am] BILLING CODE 6712-01-P
![Federal Register / Vol. 82, No. 85 / Thursday, May 4, 2017 / Rules and Regulations 20833
shown in the last column. The the Regulatory Flexibility Act because Paperwork Reduction Act. This rule
Administrator finds that notice and the National Flood Insurance Act of does not involve any collection of
public comment procedures under 5 1968, as amended, Section 1315, 42 information for purposes of the
U.S.C. 553(b), are impracticable and U.S.C. 4022, prohibits flood insurance Paperwork Reduction Act, 44 U.S.C.
unnecessary because communities listed coverage unless an appropriate public 3501 et seq.
in this final rule have been adequately body adopts adequate floodplain
notified. management measures with effective List of Subjects in 44 CFR Part 64
Each community receives 6-month, enforcement measures. The
90-day, and 30-day notification letters Flood insurance, Floodplains.
communities listed no longer comply
addressed to the Chief Executive Officer with the statutory requirements, and Accordingly, 44 CFR part 64 is
stating that the community will be after the effective date, flood insurance amended as follows:
suspended unless the required will no longer be available in the
floodplain management measures are communities unless remedial action PART 64—[AMENDED]
met prior to the effective suspension takes place.
date. Since these notifications were Regulatory Classification. This final ■ 1. The authority citation for Part 64
made, this final rule may take effect rule is not a significant regulatory action continues to read as follows:
within less than 30 days. under the criteria of section 3(f) of
National Environmental Policy Act. Executive Order 12866 of September 30, Authority: 42 U.S.C. 4001 et seq.;
FEMA has determined that the 1993, Regulatory Planning and Review, Reorganization Plan No. 3 of 1978, 3 CFR,
community suspension(s) included in 58 FR 51735. 1978 Comp.; p. 329; E.O. 12127, 44 FR 19367,
this rule is a non-discretionary action Executive Order 13132, Federalism. 3 CFR, 1979 Comp.; p. 376.
and therefore the National This rule involves no policies that have § 64.6 [Amended]
Environmental Policy Act of 1969 (42 federalism implications under Executive
U.S.C. 4321 et seq.) does not apply. Order 13132. ■ 2. The tables published under the
Regulatory Flexibility Act. The Executive Order 12988, Civil Justice authority of § 64.6 are amended as
Administrator has determined that this Reform. This rule meets the applicable follows:
rule is exempt from the requirements of standards of Executive Order 12988.
Date certain
Federal assist-
Community Effective date authorization/cancellation of Current effective
State and location ance no longer
No. sale of flood insurance in community map date available in
SFHAs
Region IV
Mississippi: North Carrollton, Town of, Car- 280028 June 16, 1975, Emerg; April 3, 1978, Reg; May 2, 2017 ..... May 2, 2017.
roll County. May 2, 2017, Susp.
-do- =Ditto.
Code for reading third column: Emerg.—Emergency; Reg.—Regular; Susp.—Suspension.
Dated: April 24, 2017. (Commission) completes its proceeding document may be downloaded at
Michael M. Grimm, to review the Uniform System of https://transition.fcc.gov/Daily_
Assistant Administrator for Mitigation, Accounts (USOA) to minimize the Releases/Daily_Business/2017/db0228/
Federal Insurance and Mitigation compliance burdens on carriers while FCC-17-15A1.pdf. In this present
Administration, Department of Homeland ensuring that the agency retains access document, we have assessed the effects
Security, Federal Emergency Management to the information it needs to fulfill its of our streamlining the part 32 Uniform
Agency. regulatory duties. System of Accounts (part 32 USOA)
[FR Doc. 2017–08951 Filed 5–3–17; 8:45 am]
DATES: The rules adopted in this accounting rules and find that the
BILLING CODE 9110–12–P
document shall become effective on Commission’s actions will result in
January 1, 2018, with the exception of overall reduced regulatory burdens for
amendments to §§ 1.1409 and 32.1, both price cap and rate-of-return
FEDERAL COMMUNICATIONS which shall become effective following carriers, including small businesses
COMMISSION publication in the Federal Register of a with fewer than 25 employees. In
document announcing approval by addition, the Report and Order allows
47 CFR Parts 1, 32, and 65 OMB of these amendments. price cap carriers to elect to use GAAP
[WC Docket No. 14–130, CC Docket No. 80– FOR FURTHER INFORMATION CONTACT: for all regulatory accounting purposes
286; FCC 17–15] Robin Cohn, Wireline Competition so long as they comply with targeted
Bureau, Pricing Policy Division at (202) accounting rules. Because incumbent
Comprehensive Review of the Uniform 418–2747 or at Robin.Cohn@fcc.gov, or LECs subject to price cap regulation are
System of Accounts, Jurisdictional Nicole Ongele, Office of Managing
Separations and Referral to the among the largest of
Director at (202) 418–2991 or at telecommunications companies, we do
pmangrum on DSK3GDR082PROD with RULES
Federal-State Joint Board Nicole.Ongele@fcc.gov. not anticipate any impact from this
AGENCY: Federal Communications SUPPLEMENTARY INFORMATION: This is a action on small businesses with fewer
Commission. summary of the Commission’s Report than 25 employees.
ACTION: Final rule. and Order, WC Docket No. 14–130, CC
Docket 80–286; FCC 17–15, adopted
In this document, the Federal
SUMMARY: February 23, 2017 and released
Communications Commission February 24, 2017. The full text of this
VerDate Sep<11>2014 13:02 May 03, 2017 Jkt 241001 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 E:\FR\FM\04MYR1.SGM 04MYR1](https://thefederalregister.org/doc/82_FR_20918/page/1.svg)
![20834 Federal Register / Vol. 82, No. 85 / Thursday, May 4, 2017 / Rules and Regulations
Synopsis accepted accounting principles (GAAP) (LECs) while making it optional for
I. Introduction to the extent regulatory considerations other incumbents. Price cap regulation
permit.’’ As the Commission explained: is a form of incentive regulation that
1. In this Report and Order (Order), GAAP is that common set of accounting relies on a series of Price Cap Indexes
we complete our proceeding to review concepts, standards, procedures and (PCIs) to limit the prices that these
our part 32 Uniform System of Accounts conventions which are recognized by carriers charge for services to levels that
(USOA) to consider ways to minimize the accounting profession as a whole are presumed to be just and reasonable.
the compliance burdens on carriers and upon which most nonregulated Today, more than 95 percent of access
while ensuring that the agency retains enterprises base their external financial lines are served by price cap carriers.
access to the information it needs to statements and reports. It directs the 8. Price cap regulation eliminated the
fulfill its regulatory duties. Section 220 recording of financial events and direct link between changes in allocated
of the Communications Act of 1934, as transactions and relates to how assets, accounting costs and changes in price,
amended (the Act), authorizes the liabilities, revenues and expenses are to but as originally implemented, it did not
Commission to prescribe the system of be identified, measured, and reported. sever the connection between
accounts to be used by carriers subject While part 32 specifies a chart of accounting costs and prices entirely.
to the Act, and the USOA and its accounts and the types of transactions to The 1991 LEC price cap plan required
predecessors have historically be maintained in each account, GAAP earnings above prescribed levels to be
performed this function for regulated allows companies to determine their shared with ratepayers and provided for
telephone companies. But the USOA own system of accounts subject to upward adjustment of PCIs if earnings
comes with a cost: Many regulated certain principles. fell below a prescribed level. LECs were
companies must maintain two sets of 5. The Commission adopted the also permitted to file above-cap rates if
books—one for financial reporting and USOA ‘‘at a time when regulators were cost-based showings demonstrated that
another for regulatory purposes—with required or inclined to organize a rate within the cap would be
the attendant costs of additional training telecommunications costs in a manner confiscatory. In 1997, the Commission
for accountants, creating a second set of that allowed a logical mapping of these eliminated the sharing mechanism, and
customized accounting software, and costs to telecommunications rate in 1999, the Commission eliminated the
auditing two sets of processes for structures.’’ Accordingly, the USOA was low-end adjustment for incumbent LECs
compliance. designed to complement rate-of-return that received and exercised pricing
2. We now conclude that, in light of regulation and the system of tariffed flexibility. This had the practical effect
the Commission’s actions in areas of interstate access charges that incumbent of severing the connection between
price cap regulation, universal service LECs were required to follow at that prices and the need to account for costs
reform, and intercarrier compensation time. Part 32 required carriers to record from a regulatory point of view.
reform, as well as the advancement of their assets, expenses, and revenues in 9. In the years following passage of
robust intermodal competition in the prescribed accounts. Part 64’s cost the Telecommunications Act of 1996,
market for telephone services, the duty assignment rules apportioned the the Commission reviewed and
to maintain two sets of accounts is investment, expenses, and revenues streamlined its accounting rules on
generally not necessary for price cap between regulated and nonregulated several occasions. In 1997, the
carriers. Moreover, with respect to all activities. Part 36 prescribed rules for Commission clarified that ‘‘only
carriers, we streamline and eliminate separating regulated investment, incumbent local exchange carriers’’ are
outdated accounting rules no longer expenses, and revenues between the subject to specific USOA requirements
needed to fulfill our statutory or interstate and intrastate jurisdictions. and other accounting rules. In 1999, the
regulatory duties. By reducing the costly Part 69 then specified how carriers were Commission ‘‘greatly streamline[d]’’ its
burden of outdated regulatory to apportion costs assigned to the depreciation requirements for price cap
requirements placed upon carriers, interstate jurisdiction among the carriers, and established a waiver
today’s reforms give carriers the ability interexchange service category and the process whereby these carriers could
to better allocate scarce resources access categories and rate elements. In obtain the ability to set their own
toward expanding modern networks other words, the access rates carriers depreciation rates in accordance with
which are critical to bringing economic charged were directly tied to the costs GAAP. In 2000, the Commission
opportunity, job creation, and civic of the carriers, and thus the accurate streamlined part 32 obligations by
engagement to all Americans. recording of such costs in the USOA. eliminating the expense matrix filing
6. From 1984 until 1991, virtually all requirement, reducing the cost
II. Background interstate access services were subject to allocation manual audit requirement,
3. Section 220 of the Act requires the rate-of-return regulation, under which relaxing certain affiliate transaction
Commission to ‘‘prescribe a uniform carriers’ charges are set to cover an requirements for services, and
system of accounts for use by telephone entity’s regulated operating expenses eliminating the reclassification
companies.’’ The Commission adopted and to provide the opportunity to earn requirement for certain plant under
its first accounting system in 1935 as a prescribed return on the capital the construction. In 2001, it consolidated
parts 31 and 33 of the Commission’s company uses to provide regulated and streamlined Class A accounting
rules ‘‘when a rigid institutionalized services. Earnings were monitored requirements, relaxed additional aspects
regulatory environment was expected to through part 32 data that incumbent of the affiliate transaction rules, reduced
continue forever.’’ In 1986, the LECs filed annually through the the cost of regulatory compliance with
Commission adopted the USOA Commission’s Automated Reporting cost allocation rules for mid-sized
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contained in part 32 to respond to the Management Information System incumbent LECs, and reduced financial
‘‘introduction of competition and an (ARMIS). Future carriers’ charges were reporting requirements. And in 2008,
explosion of new products and services adjusted if profit margins were above or the Commission forbore from applying
to which the existing systems could not below the prescribed rate of return. its cost assignment rules and financial
respond without massive modification.’’ 7. In 1991, the Commission adopted reporting rules to AT&T, Verizon, and
4. The Commission intended the price cap regulation for the largest Qwest, finding that its need for cost data
USOA to ‘‘accommodate generally incumbent local exchange carriers had significantly diminished with
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continuing refinement of price cap II. Discussion equal to or above $152.5 million) and
ratemaking and universal service 12. In this Order, we make significant Class B (smaller carriers). These rules
reforms. revisions to our part 32 USOA require Class A carriers to generally
10. In 2012, USTelecom filed a accounting rules and take a number of maintain 138 accounts, which provide
steps to substantially reduce the more detailed records of investment,
petition pursuant to section 10 of the
expense, and revenue than the 80
Act requesting that the Commission accounting burdens on incumbent LECs.
accounts that smaller Class B carriers
forbear from enforcing certain ‘‘legacy First, we streamline the USOA for all
are required to maintain. When the
telecommunications regulations.’’ In the carriers, amending 39 rules effective
Commission adopted this regime, it
USTelecom Forbearance Order, the January 1, 2018. Second, we allow price
drew this line to ‘‘adopt a far less
Commission extended the forbearance it cap carriers to elect to use GAAP for all
burdensome system’’ for smaller
had granted to AT&T, Verizon, and regulatory accounting purposes so long
carriers—but one that was nevertheless
Qwest to other price cap carriers, but as they comply with targeted accounting
sufficient to meet its statutory
declined to forbear from applying the rules. These additional reforms will
obligations. The Commission has
USOA to these carriers. Nevertheless, eliminate burdensome accounting
gradually altered these requirements as
the Commission ‘‘acknowledge[d] that requirements that serve no federal regulatory needs and market conditions
further streamlining of our rules is purpose for electing price cap carriers. have changed.
likely appropriate,’’ and promised to 13. The reforms we adopt herein will 16. We now eliminate the
‘‘conduct a comprehensive review of the significantly reduce the regulatory classification of carriers, so that all
Part 32 Uniform System of Accounts’’ burdens associated with maintaining carriers subject to part 32’s USOA will
separate sets of financial accounts. As be required to keep only the streamlined
with the aim of ‘‘minimiz[ing] the
previously noted, while part 32 Class B accounts and will otherwise be
compliance burdens of our regulations
specifies a chart of accounts and the treated as Class B carriers for purposes
while ensuring our continued access to
types of transactions to be maintained in of part 32. Collapsing the distinction
the relevant financial information each account, GAAP allows companies
necessary to fulfill our duties.’’ between Class A and Class B carriers
to determine their own system of will simplify our rules and reduce the
11. On September 15, 2014, the accounts subject to certain principles in number of accounts that Class A carriers
Commission published the the form of an overarching system of must keep by one-third. Doing so will
Comprehensive Review of Uniform broad accounting guidelines that ensure a more uniform treatment of
System of Accounts, Notice of Proposed address the recording of assets, accounts for carriers subject to the
Rulemaking, 79 FR 54942 (2014 NPRM), liabilities, and stockholders’ equity. USOA, simplifying both compliance for
initiating the instant proceeding to Further, GAAP allows carriers to record carriers and oversight by the
reform its rules to ease the accounting financial transactions in a manner that Commission. Furthermore, we find that
burdens on carriers. First, the 2104 reflects the broader nature of the eliminating Class A treatment is
NPRM proposed to streamline the enterprise, while part 32 compliance sufficient to meet our regulatory needs,
Commission’s USOA accounting rules requires carriers to maintain two since no rate-of-return carrier (i.e., those
while preserving their existing separate sets of financial and accounting where cost accounting is most
structure. In this regard, the 2014 NPRM books for federal regulatory purposes. important) is required by the
proposed to consolidate Class A and Commenters emphasized the Commission’s rules today to keep Class
Class B accounts, to revise our rules burdensome nature of this requirement, A accounts.
regarding continuing property records which we acknowledge here. 17. Ad Hoc disagrees, arguing that
for price cap carriers, and to better align eliminating the distinction would
A. Streamlining the USOA
with GAAP the USOA’s asset prevent the Commission from carrying
accounting rules, its Allowance-for- 14. In this section, we adopt revisions out its statutory duties. Ad Hoc argues
to part 32 that significantly streamline that we should retain the Class A
Funds-Used-During-Construction
the accounting requirements applicable accounts for cable and wire facilities,
(AFUDC) rules, its materiality rules, and
to incumbent LECs. Specifically, we depreciation, amortization, amortizable
its rules requiring that carriers submit
adopt our proposals to consolidate Class assets, and revenue reporting for the
all prior period adjustments (PPAs) and
A and Class B accounts and to revise basic local exchange category that
unusual or extraordinary items to the
our rules regarding continuing property includes private line revenue because
Commission for review and approval. It
records for price cap carriers. We better doing so has ‘‘obvious import, both for
sought comment on whether to better align with GAAP the USOA’s asset the setting of pole and conduit rates and
align the USOA’s depreciation and cost accounting rules, its AFUDC rules, and for the ongoing special access
of removal-and-salvage accounting rules its materiality rules. And we decline to proceeding.’’
with GAAP. Second, the 2014 NPRM amend the USOA’s depreciation and 18. Contrary to Ad Hoc’s contentions,
also sought focused comment on cost of removal-and-salvage rules. These maintenance of accounts at the Class B
additional specific requirements that revisions, with the exception of the level, coupled with the Commission’s
should be applied to price cap carriers. continuing property records rules, will ability to require carriers to produce
These included ‘‘eliminating the apply to all carriers subject to part 32’s additional accounting data when there
requirement that price cap carriers USOA, but not to any price cap carriers is an express federal need, will enable
comply with the USOA and imposing that elect to use GAAP accounting. us to ensure that Class A carriers’ rates
targeted accounting requirements that fit are just and reasonable and not
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our specific statutory needs.’’ Third, it 1. Consolidating the Class A and Class unreasonably discriminatory. Indeed, no
sought comment on several related B Accounts rate-of-return carrier currently qualifies
issues, including state requirements, 15. Part 32, as authorized by section as a Class A carrier, although the
rate effects, implementation, and legal 220(h) of the Act, divides incumbent Commission’s need for part 32
authority. The Commission received ten LECs into two classes for accounting accounting data are unquestionably
comments and seven reply comments in purposes based on annual revenues: greater for carriers subject to rate-of-
response to the 2014 NPRM. Class A (carriers with annual revenues return regulation and legacy universal
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service mechanisms that tie federal accounting obligation to maintain offers the ‘‘case-by-case’’ standard
support to a carrier’s reported costs. continuing property records necessary proposed by the Nevada Public Utilities
And Ad Hoc offers nothing beyond mere to track substantial assets and Commission—and we agree with the
assertions that the rates would differ in investments in an accurate, auditable state commission that the Commission
any material way with Class B manner that enables them to verify their will ‘‘ultimately be[] the arbiter’’ of
treatment, and ignores the fact that the accounting books, make such property whether a carrier has complied with
Commission neither relied on part 32 information available to the GAAP’s materiality standard.
accounts when formulating its special Commission upon request, and ensure 26. We also agree with Alexicon that
access data collection nor relied on any the maintenance of such data. This rule ‘‘it would be beneficial to NECA and its
existing part 32 Class A account in the change reflects the expectations and pool members if the Commission
2014 NPRM. We accordingly find Ad commitments connected with the adopted a definition of materiality that
Hoc’s assertions speculative and forbearance relief we granted in the provided guidance related to NECA’s
baseless. USTelecom Forbearance Order. review procedures.’’ Indeed, more
19. Furthermore, we conclude that 22. We decline at this time to require particular guidance may be especially
section 402(c) of the price cap carriers to file compliance important for carriers receiving legacy
Telecommunications Act of 1996 does plans, as proposed by the 2014 NPRM, universal service support because
not prohibit us from eliminating the to the extent they have not done so. No federal support is tied to the reported
distinction between Class A and Class B commenter addressed this issue. In the costs of such carriers. We adopt the
carriers. That section states that ‘‘[i]n absence of record support for the general materiality guidelines
classifying carriers according to section proposal, we decline to adopt any promulgated by the Auditing Standards
32.11 of [the FCC’s] regulations . . . the compliance plan filing requirement. Board. Materiality levels are in large
Commission shall adjust the revenue part a matter of professional judgment,
3. Aligning the USOA More Closely
requirements to account for inflation and according to generally accepted
With GAAP
. . . annually.’’ In the 2014 NPRM, the auditing standards, may consider such
Commission did ‘‘not read this 23. In the 2014 NPRM, the factors as:
provision to require the Commission to Commission proffered several different (1) The elements of the financial
classify carriers for purposes of Part 32 proposals for aligning the USOA more statements (for example, assets,
accounting rules, but instead to require closely with GAAP. We adopt the liabilities, equity, income, and
annual adjustments so long as the proposals to align with GAAP the expenses) and the financial statement
Commission continues to classify USOA’s asset accounting rules, its measures defined in generally accepted
carriers for these purposes.’’ The only AFUDC rules, and its materiality rules. accounting principles (for example,
party to address this issue agreed with First, we align our definition of original financial position, financial
this interpretation. We adopt it now. cost to align with GAAP so that carriers performance, and cash flows), or other
carry an asset at its purchase price when specific requirements;
2. Continuing Property Records for Price it was acquired, even if its value has (2) Where there are financial
Cap Carriers increased or has declined when it goes statement items on which, for the
20. In the USTelecom Forbearance into regulated service. Second, we allow particular entity, users’ attention tends
Order, the Commission concluded that carriers to reprice an asset at market to be focused (for example, for the
forbearance from the continuing value after a merger or acquisition. The purpose of evaluating financial
property records requirements in record is barren of evidence that these performance);
§ 32.2000(e) and (f) was warranted for requirements for carriers to price assets (3) The nature of the entity and the
price cap carriers, as long as they could differently than they would in the industry in which it operates; and
demonstrate in compliance plans how ordinary course of business retain any (4) The size of the entity, nature of its
they would ‘‘maintain the records value. ownership, and the way it is financed.
necessary to track substantial assets and 24. Third, we find that using GAAP Because independent auditors are
investment in an accurate, auditable principles to determine AFUDC should required to undertake assessments of
manner that enables them to verify be the applicable standard. We revise materiality and risk in all audit
account balances in their Part 32 the rules accordingly. As the engagements, their judgment can and
Uniform System of Accounts, make Commission noted at the time, the should be relied upon when
such property information available to resulting difference in accounting is determining materiality levels for
the Commission upon request, and immaterial from a regulatory purposes of regulatory reporting and
ensure maintenance of such data.’’ In perspective but may increase the review.
the 2014 NPRM, the Commission sought administrative burdens of compliance 27. In contrast, we decline at this time
comment on memorializing these for carriers otherwise required to meet to revise the USOA’s depreciation
requirements in a rule. USTelecom GAAP standards. procedures or its rules for cost of
supports requiring price cap carriers to 25. Fourth, we revise our rules to removal-and-salvage accounting. As the
maintain property records necessary to incorporate the concept of materiality. Rural Associations argue, and we agree,
track substantial investments in an As USTelecom explains, ‘‘USOA has no revising USOA’s depreciation rules
auditable fashion that enables materiality standard and requires all might result in unpredictable changes in
verification and the ability to make such transactions be booked regardless of any rates and universal service funding
information available to the materiality consideration. This forces mechanisms—potentially rendering
Commission upon request. These data carriers to justify every accounting universal service support unpredictable
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can be maintained by utilizing GAAP, discrepancy, no matter how trivial and absent further study. And we find the
according to USTelecom. No party immaterial, thereby adding unnecessary record too spare to quell the concern we
opposed the property records proposal costs to the preparation and audit of a recognized in the 2014 NPRM that
advanced in the 2014 NPRM. carrier’s accounting records.’’ We agree changing the USOA’s rules for cost of
21. As proposed in the 2014 NPRM, and incorporate the GAAP standard of removal-and-salvage accounting could
we revise part 32 to require price cap materiality for price cap carriers. We have a significant impact on pole
carriers with a continuing part 32 believe the flexible GAAP standard attachment rates.
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![20838 Federal Register / Vol. 82, No. 85 / Thursday, May 4, 2017 / Rules and Regulations
while still allowing the price cap carrier are subject to competition.’’ As the 2014 between their local and long-distance
to shed its USOA obligations. NPRM explained, the Commission has affiliates (to the extent they even offer
37. As a second option, price cap never found it necessary to seek those services through separate
carriers may comply with GAAP accounting data to address allegations of affiliates). In the last 20 years, increased
accounting for all purposes other than violations of section 254(k). In other competition in access markets as a
those associated with setting pole words, USOA data have not been result of legislative, regulatory, and
attachment rates while continuing to needed to ensure compliance with technological changes has reduced the
use the part 32 accounts and procedures section 254(k), even right after the end need for section 272 imputation
necessary to establish and evaluate pole of legal telephone service monopolies in requirements to prevent cross-
attachment rates. Carriers have a period the late 1990s. Given the advent of even subsidization between incumbent LECs’
of 12 years in which they can opt into more intermodal competition, we do not local and long distance services. Thus,
GAAP accounting for pole attachment foresee a need for USOA data to resolve continued enforcement of the section
rates and would be required to utilize any section 254(k) violations going 272(e)(3) imputation requirements is not
the Implementation Rate Difference for forward. necessary to ensure that the charges,
the remaining portion of the 12 years 41. The Commission also sought practices, classifications, or regulations
after they have chosen to move to GAAP comment on whether the harm intended by, for, or in connection with that
accounting. We find that this approach to be addressed by section 272(e)(3) telecommunications carrier or
offers flexibility for price cap carriers continues to be a concern, or whether telecommunications service are just and
who do not wish to immediately the Commission should consider reasonable and are not unjustly or
transition to GAAP for purposes of forbearing from this requirement. In the unreasonably discriminatory. Given
setting pole attachment rates. record, the BOCs primarily focused on these changes in the regulatory
38. We emphasize that a shift in alternatives to antiquated part 32 landscape and the diminished
accounting methodology (here, from accounting, rather than addressing importance of imputation requirements
USOA to GAAP) does not change what forbearance from section 272(e)(3). In to prevent marketplace harms, section
costs may be included in pole evaluating the lack of utility of part 32 272(e)(3) is not necessary for the
attachment rates—instead, it changes accounting rules, our attention is also protection of consumers, and
only how and when those costs are focused on regulatory requirements forbearance will be in the public
recognized. We thus expect that shifting such as section 272(e)(3) that, similar to interest. Accordingly, we determine that
the accounting method is unlikely to the USOA, have outgrown their forbearing from the continued
result in abrupt changes in pole usefulness. application of these requirements is
attachment rates in the near term, and 42. Before 1996, the BOCs were appropriate.
that rates will remain steady over the prohibited from entering the long- 44. Finally, we terminate the
long-run. Price cap carriers have distance market (i.e., from offering conditions that the Commission placed
explained that shifting accounting interexchange service) out of concern on a variety of carriers granted
methods is ‘‘not an effort to increase that they could use their local monopoly forbearance from our cost allocation
pole attachment rates’’ and ‘‘not an to subsidize competitive operations in rules. Forbearance was expressly
attempt to do some other rate- or cost- the long-distance market. The premised on the continued availability
shifting,’’ and we intend to monitor pole Telecommunications Act created a path of part 32 accounting data and the filing
attachment rates and hold them to that for the BOCs to enter that market, of compliance plans consistent with that
promise. requiring, among other things, that a condition. AT&T, Qwest and Verizon
39. Finally, to facilitate transparency BOC that offers its long-distance service filed compliance plans that detailed
of pole attachment rates during the to ‘‘impute to itself . . . an amount for their commitment to continue to
transition from USOA to GAAP, a pole access to its telephone exchange service maintain part 32 accounting data. In the
attacher may request that a price cap and exchange access that is no less than 2014 NPRM, the Commission invited
carrier submit its pole attachment the amount charged to any unaffiliated parties to comment on how changes to
accounting data for a particular state to interexchange carriers for such service.’’ the part 32 requirements would affect
this Commission for three years 43. We conclude that we should the commitments made in compliance
following the effective date of the rule forbear from the continued application plans filed in connection with
permitting a price cap carrier to elect of section 272(e)(3)’s imputation forbearance proceedings. Commenters
GAAP accounting. Thus, if a pole requirements. No party commented on directly addressing this issue support
attacher informs the Commission of a whether the Commission should the action taken herein. Although we
suspected problem with pole forbear. The rationales for removing the speculated in 2013 that ‘‘there may be
attachment rates, the Commission will accounting requirements associated a ‘federal need for this accounting
require the price cap carrier to file its with section 272(e)(3) are equally information in the future to adjust our
pole attachment data for the state in applicable to considerations of existing price cap regime or in our
question. This requirement will assist forbearing from the requirements of the consideration of reforms moving
the parties and the Commission in subsection completely. In the USF/ICC forward,’’’ time has proven that
monitoring and evaluating any abrupt Transformation Order, the Commission prediction untrue. And continuing to
rate changes that may occur. If it proves placed terminating intercarrier maintain these costly requirements on
necessary, the Commission may extend compensation charges on a path toward the speculation that at some point, some
this obligation for an additional three bill-and-keep, which greatly diminishes day, the Commission might do
years. the need for imputation charges. something with them fails any cost-
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40. Other Issues. We conclude that Furthermore, many other entities benefit analysis.
USOA accounting data is unnecessary to provide integrated long-distance service,
ensure compliance with section 254(k) such as non-BOC LECs, cable operators, C. Other Considerations
of the Act, which prohibits a over-the-top voice over Internet Protocol 45. We decline requests to reconsider
telecommunications carrier from companies, and commercial mobile other deregulatory actions by the
‘‘us[ing] services that are not radio service providers; these entities Commission in this proceeding.
competitive to subsidize services that are not required to impute charges NASUCA broadly argues that it opposes
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Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. USOA has been designed to reflect (c) Account 3100, Accumulated
151, 154(j), 160, 201, 225, 303, and 309. stable, recurring financial data based to depreciation through Account 3400,
■ 2. Section 1.791 is revised to read as the extent regulatory considerations Accumulated amortization—tangible,
follows: permit upon the consistency of the well shall include the asset reserves except
established body of accounting theories that reserves related to certain asset
§ 1.791 Reports and requests to be filed and principles commonly referred to as accounts will be included in the asset
under part 32 of this chapter.
generally accepted accounting account. (See §§ 32.2005, 32.2682 and
Reports and requests shall be filed principles (GAAP). Price cap companies 32.2690.)
either periodically, upon the happening that have opted-out of USOA
of specified events, or for specific * * * * *
requirements pursuant to the conditions ■ 10. Section 32.103 is revised to read
approval by telephone companies in specified by the Commission in
accordance with and subject to the as follows:
§ 32.11(g) are relieved of the rules of this
provisions of part 32 of this chapter. part in their entirety, including any § 32.103 Balance sheet accounts for other
■ 3. Section 1.1409 is amended by other rules or orders that are derivative than regulated-fixed assets to be
adding paragraph (g) to read as follows: of or dependent on the rules in this part. maintained.
Balance sheet accounts to be
§ 1.1409 Commission consideration of the § 32.3 [Removed and Reserved]
complaint.
maintained by companies for other than
■ 6. Section 32.3 is removed and regulated-fixed assets are indicated as
* * * * * reserved. follows:
(g) A price cap company opting-out of ■ 7. Section 32.11 is amended by
part 32 of this chapter may calculate revising the section heading and BALANCE SHEET ACCOUNTS
attachment rates for its poles, conduits, paragraph (a), removing and reserving
and rights of way using either part 32 paragraphs (b) though (f), and adding Account title
accounting data or GAAP accounting paragraph (g) to read as follows:
data. A price cap company using GAAP Current assets
accounting data to compute rates to § 32.11 Companies subject to this part. Cash and equivalents ..................... 1120
attach to its poles, conduits, and rights (a) This part applies to every Receivables ..................................... 1170
of way in any of the first twelve years incumbent local exchange carrier, as Allowance for doubtful accounts ..... 1171
after opting-out must adjust (increase or defined in section 251(h) of the Supplies:
decrease) its annually computed GAAP- Communications Act, and any other Material and supplies .................. 1220
based rates by an Implementation Rate Prepayments ................................... 1280
carrier that the Commission designates Other current assets ....................... 1350
Difference for each of the remaining by order. This part refers to such Noncurrent assets
years in the period. The Implementation carriers as ‘‘companies’’ or ‘‘Class B Investments:
Rate Difference means the difference companies.’’ Incumbent local exchange Nonregulated investments ........... 1406
between attachment rates calculated by carriers’ successor or assign companies, Other noncurrent assets .............. 1410
the price cap carrier under part 32 and as defined in section 251(h)(1)(B)(ii) of Deferred charges:
under GAAP as of the last full year the Communications Act, that are found Deferred maintenance, retire- 1438
preceding the carrier’s initial opting-out to be non-dominant by the Commission, ments and other deferred
of part 32 USOA accounting will not be subject to this Uniform charges.
requirements. Other:
System of Accounts. Other jurisdictional assets-net ..... 1500
* * * * *
PART 32—UNIFORM SYSTEM OF (g) Notwithstanding paragraph (a) of
ACCOUNTS FOR ■ 11. Section 32.2000 is amended by:
this section, a price cap company that ■ a. Removing and reserving paragraph
TELECOMMUNICATIONS COMPANIES elects to calculate its pole attachment (a)(4);
■ 4. The authority citation for part 32 is rates pursuant to § 1.1409(g) of this ■ b. Revising paragraphs (b)(1),
revised to read as follows: chapter will not be subject to this (b)(2)(iii), and (c)(2)(x);
Uniform System of Accounts. ■ c. Adding paragraph (e)(8); and
Authority: 47 U.S.C. 219, 220 as amended,
■ 8. Section 32.26 is revised to read as ■ d. Revising paragraphs (f)(2)(iii) and
unless otherwise noted.
follows: (j).
■ 5. Section 32.1 is revised to read as The revisions and addition read as
follow: § 32.26 Materiality.
follows:
(a) Except as provided in paragraph
§ 32.1 Background.
(b) of this section, companies may abide § 32.2000 Instructions for
The revised Uniform System of by the materiality standards of GAAP telecommunications plant accounts.
Accounts (USOA) is a historical when implementing this system of (a) * * *
financial accounting system which accounts. (4) [Reserved]
reports the results of operational and (b) For companies that receive High- (b) * * *
financial events in a manner which Cost Loop Support, or Connect America (1) Property, plant and equipment
enables both management and Fund Broadband Loop Support, acquired from an entity, whether or not
regulators to assess these results within materiality shall be determined affiliated with the accounting company,
a specified accounting period. The consistent with the general materiality shall be accounted for at original cost,
USOA also provides the financial guidelines promulgated by the Auditing except that property, plant and
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community and others with financial Standards Board. equipment acquired from a nonaffiliated
performance results. In order for an ■ 9. Section 32.101 is amended by entity through an acquisition or merger
accounting system to fulfill these revising paragraph (c) to read as follows: may be accounted for at market value at
purposes, it must exhibit consistency the time of the acquisition or merger.
and stability in financial reporting § 32.101 Structure of the balance sheet (2) * * *
(including the results published for accounts. (iii) Accumulated Depreciation and
regulatory purposes). Accordingly, the * * * * * amortization balances related to plant
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acquired shall be credited to Account or more retirement units or of minor ■ 15. Section 32.2310 is revised to read
3100, Accumulated depreciation, or items without replacement when not as follows:
Account 3200, Accumulated included in the costs of retirement
depreciation—held for future units, the actual cost or a reasonably § 32.2310 Information origination/
termination.
telecommunications use, or Account accurate estimate of the cost of the plant
3400, Accumulated amortization— retired can be determined. This account shall be used by
tangible and debited to Account 1438. companies to record the original cost of
* * * * * information origination/termination
Accumulated amortization balances (j) Plant accounts to be maintained by
related to plant acquired which equipment of the type and character
telephone companies as indicated: detailed in Accounts 2311 through
ultimately is recorded in Accounts
2005, Telecommunications plant 2362.
Account title
adjustment, Account 2682, Leasehold ■ 16. Section 32.2410 is revised to read
improvements, or Account 2690, Regulated plant as follows:
Intangibles shall be credited to these Property, plant and equipment: § 32.2410 Cable and wire facilities.
Telecommunications plant in 1 2001
asset accounts, and debited to Account
service. This account shall be used by
1438.
Property held for future tele- 2002 companies to record the original cost of
* * * * * communications use. cable and wire facilities of the type and
(c) * * * Telecommunications plant under 2003 character detailed in Accounts 2411
(2) * * * construction-short term. through 2441.
(x) Allowance for funds used during Telecommunications plant adjust- 2005 ■ 17. Section 32.2680 is revised to read
construction (‘‘AFUDC’’) provides for ment.
as follows:
the cost of financing the construction of Nonoperating plant ...................... 2006
telecommunications plant. AFUDC shall Goodwill ....................................... 2007 § 32.2680 Amortizable tangible assets.
be charged to Account 2003, Telecommunications plant in
This account shall be used by
Telecommunications plant under service (TPIS)
TPIS—General support assets: companies to record amounts for
construction, and credited to Account property acquired under capital leases
Land and support assets ............. 2110
7300, Nonoperating income and TPIS—Central Office assets: and the original cost of leasehold
expense. The rate for calculating Central Office—switching ............ 2210 improvements of the type of character
AFUDC shall be determined in Operator systems ........................ 2220 detailed in Accounts 2681 and 2682.
accordance with GAAP when Central Office—transmission ....... 2230
implementing this system of accounts. TPIS—Information origination/termi- § 32.2682 [Amended]
The amount of interest cost capitalized nation assets: ■ 18. Section 32.2682 is amended by
in an accounting period shall not exceed Information origination termi- 2310 removing the last sentence in paragraph
the total amount of interest cost nation.
TPIS—Cable and wire facilities as-
(c).
incurred by the company in that period.
sets: § 32.2690 [Amended]
* * * * * Cable and wire facilities .............. 2410
(e) * * * TPIS—Amortizable assets: ■ 19. Section 32.2690 is amended by
(8) Notwithstanding any other Amortizable tangible assets ........ 2680 removing and reserving paragraph (b).
provision of this part concerning Intangibles ................................... 2690 ■ 20. Section 32.3000 is revised to read
continuing property records, carriers 1 Balance sheet summary account only. as follows:
subject to price cap regulations set forth
in part 61 of this chapter shall maintain ■ 12. Section 32.2110 is revised to read § 32.3000 Instructions for balance sheet
accounts—depreciation and amortization.
property records necessary to track as follows:
substantial assets and investments in an (a) Depreciation and amortization
accurate, auditable manner that enables § 32.2110 Land and support assets. subsidiary records. (1) Subsidiary record
them to verify their accounting books, This account shall be used by categories shall be maintained for each
make such property information companies to record the original cost of class of depreciable telecommunications
available to the Commission upon land and support assets of the type and plant in Account 3100 for which there
request, and ensure the maintenance of character detailed in Accounts 2111 is a prescribed depreciation rate. (See
such data. through 2124. also § 32.2000(g)(1)(iii).)
(f) * * * (2) Subsidiary records shall be
■ 13. Section 32.2210 is revised to read
(2) * * * maintained for Accounts 2005, 2682,
as follows:
(iii) The continuing property record 2690, 3400 in accordance with
shall reveal the description, location, § 32.2210 Central office—switching. § 32.2000(h)(4).
date of placement, the essential details This account shall be used by (b) Depreciation and amortization
of construction, and the original cost companies to record the original cost of accounts to be maintained by telephone
(note also paragraph (f)(3) of this switching assets of the type and companies, as indicated.
section) of the property record units. character detailed in Accounts 2211
Account title
The continuing property records shall through 2212.
be compiled on the basis of original cost ■ 14. Section 32.2230 is revised to read Depreciation and amortization:
(or other book cost consistent with this as follows: Accumulated depreciation ........... 3100
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system of accounts) and maintained in Accumulated depreciation—Held 3200
such manner as will provide for the § 32.2230 Central office—transmission. for future telecommunications
verification of property record units by This account shall be used by use.
physical examination. The continuing companies to record the original cost of Accumulated depreciation—Non- 3300
property record and other underlying radio systems and circuit equipment of operating.
Accumulated depreciation—Tan- 3400
records of construction costs shall be so the type and character detailed in gible.
maintained that, upon retirement of one Accounts 2231 and 2232.
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■ 33. Section 32.6530 is revised to read Account title ■ 41. The heading for part 65 is revised
as follows: to read as set forth above.
Operating taxes:
§ 32.6530 Network operations expense. Operating taxes ........................... 7200
■ 42. Section 65.810 is revised to read
Companies shall use this account for Nonoperating income and expense: as follows:
expenses of the type and character Nonoperating income and ex- 7300 § 65.810 Definitions.
detailed in Accounts 6531 through pense.
6535. Nonoperating taxes: As used in this subpart ‘‘account
■ 34. Section 32.6560 is revised to read
Nonoperating taxes ..................... 7400 xxxx’’ means the account of that number
Interest and related items: kept in accordance with the Uniform
as follows: Interest and related items ........... 7500 System of Accounts for
§ 32.6560 Depreciation and amortization Extraordinary items ..................... 7600 Telecommunications Companies in 47
expenses. Jurisdictional differences and non-
regulated income items:
CFR part 32.
Companies shall use this account for Income effect of jurisdictional 7910 ■ 43. Section 65.820 is amended by
expenses of the type and character ratemaking difference—net. revising paragraph (d) to read as
detailed in Accounts 6561 through Nonregulated net income ............ 7990 follows:
6565.
■ 35. Section 32.6610 is revised to read ■ 38. Section 32.7200 is revised to read § 65.820 Included items.
as follows: as follows: * * * * *
§ 32.6610 Marketing. (d) Cash working capital. The average
§ 32.7200 Operating taxes. amount of investor-supplied capital
Companies shall use this account for
expenses of the type and character Companies shall use this account for needed to provide funds for a carrier’s
detailed in Accounts 6611 through operating taxes of the type and character day-to-day interstate operations.
6613. detailed in Accounts 7210 through Carriers may calculate a cash working
7250. capital allowance either by performing a
■ 36. Section 32.6620 is revised to read
■ 39. Section 32.9000 is amended by lead-lag study of interstate revenue and
as follows:
revising the definition of ‘‘Original cost’’ expense items or by using the formula
§ 32.6620 Services. to read as follows: set forth in paragraph (e) of this section.
Companies shall use this account for Carriers, in lieu of performing a lead-lag
expenses of the type and character § 32.9000 Glossary of terms. study or using the formula in paragraph
detailed in Accounts 6621 through * * * * * (e) of this section, may calculate the
6623. Original cost or cost, as applied to cash working capital allowance using a
■ 37. Section 32.6999 is revised to read telecommunications plant, rights of way standard allowance which will be
as follows: and other intangible property, means established annually by the Chief,
the actual money cost of (or the current Wireline Competition Bureau. When
§ 32.6999 General. money value of any consideration other either the lead-lag study or formula
(a) Structure of the other income than money exchanged for) property at method is used to calculate cash
accounts. The other income accounts the time when it was purchased. working capital, the amount calculated
are designed to reflect both operating * * * * * under the study or formula may be
and nonoperating income items increased by minimum bank balances
including taxes, extraordinary items and PART 65—INTERSTATE RATE OF and working cash advances to
other income and expense items not RETURN PRESCRIPTION, determine the cash working capital
properly included elsewhere. PROCEDURES, AND allowance. Once a carrier has selected a
(b) Other income accounts listing. METHODOLOGIES method of determining its cash working
capital allowance, it shall not change to
Account title ■ 40. The authority citation for part 65 an optional method from one year to the
continues to read as follows: next without Commission approval.
Other operating income and ex-
pense: Authority: 47 U.S.C. 151, 154(i), 155, 201, * * * * *
Other operating income and ex- 7100 205, 214, 219, 220, 254, 303(r), 403, and 1302 [FR Doc. 2017–07175 Filed 5–3–17; 8:45 am]
pense. unless otherwise noted. BILLING CODE 6712–01–P
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Document Created: 2017-05-04 01:49:18
Document Modified: 2017-05-04 01:49:18
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | The rules adopted in this document shall become effective on January 1, 2018, with the exception of amendments to Sec. Sec. 1.1409 and 32.1, which shall become effective following publication in the Federal Register of a document announcing approval by OMB of these amendments. | |
| Contact | Robin Cohn, Wireline Competition Bureau, Pricing Policy Division at (202) 418-2747 or at [email protected], or Nicole Ongele, Office of Managing Director at (202) 418-2991 or at [email protected] | |
| FR Citation | 82 FR 20833 | |
| CFR Citation | 47
CFR
1 47 CFR 32 47 CFR 65 | |
| CFR Associated | Communications Common Carriers; Reporting and Recordkeeping Requirements; Telephone and Uniform System of Accounts |
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