[Federal Register Volume 61, Number 49 (Tuesday, March 12, 1996)]
[Proposed Rules]
[Pages 9968-9969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5826]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 65
[CC Docket No. 96-22; FCC 96-63]
Interstate Rate of Return Prescription Procedures and
Methodologies, Subpart G, Rate Base
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
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SUMMARY: The Federal Communications Commission proposes to amend its
rules regarding, ``Interstate Rate of Return Prescription Procedures
and Methodologies,'' to revise the rate base treatment of prepaid
postretirement benefits other than pensions (OPEB) costs recorded In
Account 1410, Other Noncurrent Assets, and all items in Account 4310,
Other Long-Term Liabilities, including accrued liabilities related to
OPEBs. The Commission is taking this action to update its interstate
rate base rules so that items of similar nature can be afforded uniform
treatment under the rate base rules.
DATES: Comments must be filed on or before April 12, 1996, and reply
comments must be filed on or before May 14, 1996.
ADDRESSES: Comments should be addressed to Office of the Secretary,
Federal Communications Commission, 1919 M Street, N.W., Washington,
D.C. 20554.
FOR FURTHER INFORMATION CONTACT: Clara Kuehn or Thaddeus Machcinski,
Common Carrier Bureau, Accounting and Audits Division, (202) 418-0800.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Federal
Communications Commission's Notice of Proposed Rulemaking in CC Docket
No. 96-22, Amendments to Part 65, Interstate Rate of Return
Prescription Procedures and Methodologies, Subpart G, Rate Base, FCC
96-63, adopted February 20, 1996 and released March 7, 1996. The
complete text of the Notice of Proposed Rulemaking is available for
[[Page 9969]]
inspection and copying during normal business hours in the Commission's
Reference Center, Room 239, 1919 M Street, N.W., Washington D.C. 20554,
and may also be purchased from the Commission's copy contractor,
International Transcription Service, Inc., at 2100 M Street, N.W.,
Suite 140, Washington, D.C. 20037, telephone number (202) 857-3800.
Synopsis of Notice of Proposed Rulemaking
1. The Notice of Proposed Rulemaking invites comment on proposals
to revise the rate base treatment of prepaid postretirement benefits
other than pensions (OPEB) costs recorded in Account 1410, Other
Noncurrent Assets, and all items in Account 4310, Other Long-Term
Liabilities, including accrued liabilities related to OPEBs. The
Commission notes that it does not agree with the suggestion by some
parties that modification of its Part 65 regulations be deferred until
the conclusion of several pending investigations of LEC tariffs, which
include exogenous adjustments for OPEB costs, but invites comment on
this issue.
2. The Notice of Proposed Rulemaking proposes to include prepaid
OPEB costs recorded in Account 1410, Order Noncurrent Assets, in the
interstate rate base. The rationale for this action is our tentative
conclusion that prepaid OPEB costs in excess of the SFAS-106 cost
calculation earn a return, which benefits ratepayers by reducing
amounts companies must accrue in future periods. Because investors fund
these excess prepayments, this Notice proposes to include these excess
prepayments in the rate base. The Commission invites comment on this
proposal.
3. Currently, unfunded accrued pension costs recorded in Account
4310 are removed from the rate base, although other items recorded in
Account 4310, such as accrued OPEB liabilities, are not removed from
the rate base. The Notice of Proposed Rulemaking proposes to accord to
the accrued OPEB liabilities recorded in Account 4310 the same rate
base treatment presently accorded to unfunded accrued pension costs
without modifying the rate base treatment for other items recorded in
Account 4310. Alternatively, the Notice of Proposed Rulemaking also
proposes to exclude all amounts recorded in Account 4310 from the
interstate rate base. It is the Commission's tentative conclusion that
all items recorded in Account 4310 should be removed from the rate base
because these amounts are zero-cost sources of funds, those funds
provided to a carrier without cost to investors. The Commission invites
comment on these proposals.
4. In the Notice the Commission states that this rulemaking is a
non-restricted notice and comment proceeding. Ex parte presentations
are permitted, except during the Sunshine Agenda period, provided they
are disclosed as provided in the Commission's rules, 47 CFR 1.1202,
1.1203, 1.1206.
5. In the Notice the Commission certifies that the Regulatory
Flexibility Act of 1980 does not apply to this rulemaking proceeding
because if the proposals in this proceeding are adopted, there will not
be a significant economic impact on a substantial number of small
business entities, as defined by Section 601(3) of the Regulatory
Flexibility Act. Because of the nature of local exchange and access
service, the Commission has concluded that LECs, including small LECs,
are dominant in their fields of operation and therefore are not ``small
entities'' as defined by that act. The Secretary has sent a copy of
this Notice of Proposed Rulemaking, including the certification, to the
Chief Counsel for advocacy of the Small Business Administration in
accordance with Section 603(a) of that act.
Ordering Clause
6. Accordingly, IT IS ORDERED that, pursuant to Sections 1, 4(i),
4(j), 201 through 205, 220, and 403 of the Communications Act of 1934,
as amended, 47 U.S.C. 151, 154(i), 154(j), 201 through 205, 220 and
403, notice is hereby given of proposed amendments to Part 65, Subpart
G of the Commission's Rules, 47 CFR Part 65, Subpart G, as described in
the Notice of Proposed Rulemaking.
List of Subjects in 47 CFR Part 65
Administrative practice and procedure; Communications common
carriers; Reporting and recordkeeping requirements; Telephone.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 96-5826 Filed 3-11-96; 8:45 am]
BILLING CODE 6712-01-P
