§ 36.741 - Expense adjustment.

(a) The additional interstate expense allocation shall be calculated by adding the following:

(1) The number of households provided pursuant to § 36.731(a)(1) times the dollar amount provided pursuant to § 36.731(a)(2); and

(2) The number of households provided pursuant to § 36.731(a)(3) times the dollar amount provided pursuant to § 36.731(a)(4).

(b) The expense adjustment calculated pursuant to § 36.741(a) shall be adjusted each year to reflect the actual number of lifeline recipients and the actual dollar amount of the benefits provided to them in the previous year. If the actual benefits provided in a given calendar year exceed the estimated benefits for that year calculated pursuant to § 36.741(a), this difference shall be added to the amount calculated pursuant to § 36.741(a) for the following year. If the actual benefits provided in a given year are less than the estimated amount for that year calculated pursuant to § 36.741(a), this difference shall be subtracted from the amount calculated pursuant to § 36.741(a) for the following year.

(c) The expense adjustment calculated pursuant to § 36.741 (a) and (b) shall be subtracted from total intrastate expenses and added to total interstate expenses.