[Federal Register Volume 60, Number 105 (Thursday, June 1, 1995)]
[Rules and Regulations]
[Pages 28541-28546]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13380]
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[[Page 28542]]
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 65
[CC Docket No. 92-133; FCC 95-134]
Interstate Rate of Return Represcription and Enforcement
Processes
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: The Federal Communications Commission (``Commission'') has
adopted a Report and Order (``Order'') that reforms its rules that
govern the procedures and methodologies for prescribing and enforcing
the rate of return certain Local Exchange Carriers (``LECs'') may earn
on interstate access services. First, the Order replaces the existing
rule, which calls for the initiation of rate of return represcription
proceedings biennially, with a semiautomatic trigger activated by
changes in capital costs. Second, the Order modifies the paper hearing
rules set out in part 65 to streamline represcription proceedings.
Third, the Order simplifies and streamlines the methodologies used to
estimate the cost of capital for those LECs still subject to rate of
return regulation. Finally, the Order removes the Commission's rule
authorizing an automatic refund, with interest, of earnings in excess
of ``the maximum allowable rate of return.'' The Commission adopted
this Order to streamline the procedures and methodologies of the rate
of return represcription and enforcement processes and reduce the
burdens these regulations impose on the remaining rate of return LECs,
while allowing each the opportunity to maintain its credit and to
attract capital. These reforms reflect the Commission's experience in
the 1990 Represcription Proceeding,\1\ with incentive (``price cap'')
regulation for the largest LECs, and with incentive regulation
proposals for those LECs not subject to price cap regulation.
\1\ 5 FCC Rcd 7507 (1990), 55 FR 51423, December 14, 1990.
EFFECTIVE DATE: July 3, 1995, except that Secs. 65.100, 65.101, 65.102,
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65.103, 65.104, and 65.105 shall be effective August 30, 1995.
FOR FURTHER INFORMATION CONTACT:
Thomas J. Beers, telephone number 202-418-0872, John C.K. Hays,
telephone number 202-418-0875, or John V. Giusti, telephone number 202-
418-0878.
SUPPLEMENTARY INFORMATION: This is a summary of the FCC's Report and
Order in Amendment of parts 65 and 69 of the Commission's rules to
Reform the Interstate Rate of Return Represcription and Enforcement
Processes, FCC 95-134, CC Docket No. 92-133, adopted March 30, 1995 and
released April 6, 1995. The Commission has made the full text of the
Order available for inspection and copying during normal business hours
in the Commission's Reference Center, room 239, 1919 M Street, NW,
Washington, DC 20554, and will publish it in the FCC Record. The full
text of the Order may also be purchased from the Commission's
duplicating contractor, International Transcription Service, 2100 M
Street, NW, suite 140, Washington, DC 20037, telephone number 202-857-
3800.
Regulatory Flexibility Analysis
In the Notice of Proposed Rulemaking in this proceeding,\2\ the
Commission certified that the Regulatory Flexibility Act of 1980
exempts the rules proposed in this proceeding because they will not
have a significant economic impact on a substantial number of small
entities, as defined by section 601(3) of that act.\3\ LECs do not fall
within the Regulatory Flexibility Act's definition of a ``small
entity,'' which excludes any business that is dominant in its field of
operation. In the Competitive Carrier Rulemaking, the Commission found
that LECs, even small ones, enjoy a dominant monopoly position in their
local service area.\4\ In accordance with section 603(a) of the
Regulatory Flexibility Act, the Secretary sent a copy of the Notice,
including the certification, to the Chief Counsel for Advocacy of the
Small Business Administration.
\2\ Amendment of parts 65 and 69 of the Commission's rules to
Reform the Interstate Rate of Return Represcription and Enforcement
Processes, Notice of Proposed Rulemaking and Order, 7 FCC Rcd 4688
(1992) (Notice), 57 FR 31944, July 20, 1992.
\3\ 5 U.S.C. 601(3).
\4\ 85 FCC 2d 1, 23-24 (1980), 45 FR 76148, November 18, 1980.
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Paperwork Reduction
The Commission estimates the public reporting burden for the
collections of information to average 100,000 hours per represcription,
including the time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and
reviewing the collections of information. Send comments regarding these
burden estimates or any other aspects of the collections of
information, including suggestions for reducing the burden, to the
Federal Communications Commission, Records Management Branch, Room 234,
Washington, DC 20554, and to the Office of Management and Budget,
Paperwork Reduction Project, Washington, DC 20503.
Synopsis of the Report and Order
Part 65 of the Commission's rules sets forth procedures and
methodologies for prescribing and enforcing the rate of return certain
local exchange carriers (``LECs'') may earn on interstate access
service.\5\ The Commission adopted those rules in 1985. In the Notice
in this proceeding,\6\ the Commission proposed a fundamental reform of
those rules in order to reflect the dramatic changes in the
telecommunications industry and the regulation of it that had occurred
since that time. This Order accomplishes that reform by streamlining
the rate of return represcription and enforcement processes in ways
that, the Commission believes, will substantially reduce the burden of
its regulations on the public and on those LECs still subject to rate
of return regulation. The changes achieve a proper balance of
regulatory goals by allowing a carrier the opportunity to ``maintain
its credit and to attract capital'' \7\ and by ensuring that ratepayers
are charged reasonable rates for interstate services.
\5\ 47 CFR part 65.
\6\ Notice, 7 FCC Rcd 4688 (1992), 57 FR 31994, July 20, 1992.
\7\ FPC v. Hope Natural Gas, 320 U.S. 591, 603 (1944).
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When part 65 was adopted, the Commission used rate of return
principles to regulate the rates for the interstate communications
services of the American Telephone and Telegraph Company (``AT&T'') and
all LECs. Since that time, price cap initiatives have removed all
interexchange and most interstate access revenues from such regulation.
The Commission has also created optional programs that allow the
remaining rate of return LECs to increase their opportunities for
increased profit and risks of loss above the levels they would face
under traditional, rate of return regulation.
To reflect the altered environment as well as the Commission's
experiences in implementing the part 65 rules, the Order changes
virtually every aspect of our rate of return represcription and
enforcement processes for telephone companies. First, the Order amends
the current rule that contemplates a new represcription proceeding
every two years regardless of conditions in the capital markets. The
Order replaces that rule with one that relies on the yields
[[Page 28543]] on ten-year United States Treasury securities to
determine when represcription might be warranted. Under this system,
the Commission's Common Carrier Bureau will issue a notice asking
whether the Commission should institute a represcription proceeding
only if, for six consecutive months, the six-month average of those
yields deviates by 150 basis points (1.5 percent) or more from the
yield on these securities measured as of our most recent
represcription. After evaluating the responses to such a notice, the
Commission will decide whether a represcription proceeding is necessary
and will then issue an order that either sets forth a procedural
schedule for the proceeding or announces that a represcription
proceeding is not necessary. Thus, the Order adopts a semi-automatic
trigger that initiates an inquiry into whether a represcription is
needed, rather than a trigger that automatically initiates a costly
represcription.
The current rules also establish a ``paper hearing'' process for
represcription proceedings that is modelled after the system used in
evidentiary hearings. Because this process contains procedural steps
beyond those necessary for a full and complete record, the Order adopts
streamlined procedures that will reduce the inordinate delays and costs
experienced in previous represcription proceedings, yet provide parties
full opportunity to present and evaluate relevant evidence. The Order,
therefore, streamlines the paper hearing system by removing unnecessary
provisions such as those relating to cross-examination and oral
argument options, notices of appearance, proposed findings of fact and
conclusions, and use of a separated trail staff. Elimination of these
provisions will significantly reduce procedural burden and delays. The
Order also adopts the automatic discovery requirement proposed in the
Notice in order to achieve further procedural efficiencies by
eliminating the need for routine additional discovery.
Part 65 now uses a weighted average cost of capital to calculate a
unitary, overall rate of return for rate of return LECs. This
calculation requires the Commission to determine a cost of equity, cost
of debt, and capital structure for LEC interstate access service. To
help the Commission determine these components, part 65 requires the
Regional Bell Holding Companies (``RHCs'') to undertake complex studies
and submit the resulting data for inclusion in the record in
represcription proceedings. Because the Commission has found in past
proceedings the cost of equity studies unnecessary and the cost of debt
and capital structure studies unduly complex the Order eliminates the
rules that require them. To facilitate the represcription process,
however, the Order specifies methods to calculate cost of debt and
capital structure that rely on readily available data regarding the
largest LECs for presumptive use in future represcription proceedings.
Under this approach, the Commission will use the specified
methodologies in future represcription proceedings unless the record in
those proceedings shows that the methodologies would produce
unreasonable results.
Part 65 had authorized an automatic refund, with interest, of
earnings exceeding what the rules refer to as ``the maximum allowable
rate of return.'' \8\ In the Automatic Refund Decision,\9\ the United
States Court of Appeals for the District of Columbia Circuit (``D.C.
Circuit'') remanded this rule to the Commission. Because we find that
our tariff review and complaint processes are sufficient to enforce the
prescribed interstate rate of return, we eliminate that rule.
\8\ 47 CFR 65.700
\9\ AT&T v. FCC, 836 F.2d 1386 (D.C. Cir. 1988) (per curiam)
(Automatic Refund Decision).
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Part 65 also provides that ``the maximum allowable rate of return''
equals the prescribed rate of return plus a buffer zone. The buffer
zones are defined by adding 25 basis points to overall interstate
earnings and 40 basis points each to earnings within the common line,
traffic sensitive, and special access categories. The Order retains
these buffer zones at their present levels. The zones serve an
important role in our complaint process by recognizing the effects
fluctuations in demand and operating costs may have on rate of return
LECs' earnings, while protecting customers from unreasonably high
rates. In monitoring compliance, the Order retains a two-year
enforcement period in order to provide sufficient time to reduce the
risk of targeting error and the risk that carriers will need to make
frequent rate changes to remain within the authorized rate of return.
Accordingly, it is ordered, pursuant to sections 1, 4(i), 4(j),
201-205, 218-220, and 403 of the Communications Act of 1934, as
amended, 47 U.S.C. 151, 154(i), 154(j), 201-205, 218-220, 403, that
part 65 of the Commission's rules, 47 CFR part 65, is amended, as
specified below.
List of Subjects in 47 CFR Part 65
Telephone.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
Rule Amendments
Part 65 of title 47 of the CFR is amended as follows:
Parts 65 of the Commission's rules and regulations, 47 CFR part 65,
is amended as follows:
PART 65--INTERSTATE RATE OF RETURN PRESCRIPTION PROCEDURES AND
METHODOLOGIES
1. The authority citation for part 65 is revised to read as
follows:
Authority: Secs. 4, 201, 202, 203, 205, 218, 403, 48 Stat.,
1066, 1072, 1077, 1094, as amended, 47 U.S.C. 151, 154, 201, 202,
203, 204, 205, 218, 219, 220, 403.
2. Section 65.1 is revised to read as follows:
Sec. 65.1 Application of part 65.
(a) This part establishes procedures and methodologies for
Commission prescription of an authorized unitary interstate exchange
access rate of return and individual rates of return for the interstate
exchange access rates of certain carriers pursuant to Sec. 65.102. This
part shall apply to those interstate services of local exchange
carriers as the Commission shall designate by rule or order, except
that all local exchange carriers shall provide to the Commission that
information which the Commission requests for purposes of conducting
prescription proceedings pursuant to this part.
(b) Local exchange carriers subject to Secs. 61.41 through 61.49 of
this chapter are exempt from the requirements of this part with the
following exceptions:
(1) Except as otherwise required by Commission order, carriers
subject to Secs. 61.41 through 61.49 of this chapter shall employ the
rate of return value calculated for interstate access services in
complying with any applicable rules under parts 36 and 69 that require
a return component;
(2) Carriers subject to Sec. Sec. 61.41 through 61.49 of this
chapter shall be subject to Sec. 65.600(d);
(3) Carriers subject to Secs. 61.41 through 61.49 of this chapter
shall continue to comply with the prescribed rate of return when
offering any services specified in Sec. 61.42(f) of this chapter unless
the Commission otherwise directs; and
(4) Carriers subject to Sec. Sec. 61.41 through 61.49 of this
chapter shall comply with Commission information requests made pursuant
to Sec. 65.1(a).
3. Sections 65.100 is revised to read as follows: [[Page 28544]]
Sec. 65.100 Participation and acceptance of service designation.
(a) All interstate exchange access carriers, their customers, and
any member of the public may participate in rate of return proceedings
to determine the authorized unitary interstate exchange access or
individual interstate exchange access rates of return authorized
pursuant to Sec. 65.102.
(b) Participants shall state in their initial pleading in a
prescription proceeding whether they wish to receive service of
documents and other material filed in the proceeding. Participants that
wish to receive service by hand on the filing dates when so required by
this Part 65 shall specify in their initial pleading in a prescription
proceeding, as specified in Secs. 65.103 (b) and (c), an agent for
acceptance of service by hand in the District of Columbia. The
participant may elect in its pleading to receive service by mail or
upon an agent at another location. When such an election is made, other
participants need not complete service on the filing date, and requests
for extension of time due to delays in completion of service will not
be entertained.
4. Section 65.101 is revised to read as follows:
Sec. 65.101 Initiation of unitary rate of return prescription
proceedings.
(a) Whenever the Commission determines that the monthly average
yields on ten (10) year United States Treasury securities remain, for a
consecutive six (6) month period, at least 150 basis points above or
below the average of the monthly average yields in effect for the
consecutive six (6) month period immediately prior to the effective
date of the current prescription, the Commission shall issue a notice
inquiring whether a rate of return prescription according to this part
should commence. This notice shall state:
(1) The deadlines for filing initial and reply comments regarding
the notice;
(2) The cost of debt, cost of preferred stock, and capital
structure computed in accordance with Secs. 65.302, 65.303, and 65.304;
and
(3) such other information as the Commission may deem proper.
(b) Based on the information submitted in response to the notice
described in Sec. 65.101(a), and on any other information specifically
identified, the Commission may issue a notice initiating a prescription
proceeding pursuant to this part.
(c) The Chief, Common Carrier Bureau, may issue the notice
described in Sec. 65.101(a).
5. Section 65.102 is revised to read as follows:
Sec. 65.102 Petitions for exclusion from unitary treatment and for
individual treatment in determining authorized return for interstate
exchange access service.
(a) Exclusion from unitary treatment will be granted for a period
of two years if the cost of capital for interstate exchange service is
so low as to be confiscatory because it is outside the zone of
reasonableness for the individual carrier's required rate of return for
interstate exchange access services.
(b) A petition for exclusion from unitary treatment and for
individual treatment must plead with particularity the exceptional
facts and circumstances that justify individual treatment. The showing
shall include a demonstration that the exceptional facts and
circumstances are not of transitory effect, such that exclusion for a
period of a least two years is justified.
(c) A petition for exclusion from unitary treatment and for
individual treatment may be filed at any time. When a petition is filed
at a time other than that specified in Sec. 65.103(b)(2), the
petitioner must provide compelling evidence that its need for
individual treatment is not simply the result of short-term
fluctuations in the cost of capital or similar events.
6. Section 65.103 is revised to read as follows:
Sec. 65.103 Procedures for filing rate of return submissions.
(a) Rate of return submissions listed in Sec. 65.103(b)(1) and (c)
may include any relevant information, subject to the page limitations
of Sec. 65.104. The Chief, Common Carrier Bureau, may require from
carriers providing interstate services, and from other participants
submitting rate of return submissions, data, studies or other
information that are reasonably calculated to lead to a full and fair
record.
(b) In proceedings to prescribe an authorized unitary rate of
return on interstate access services, interested parties may file
direct case submissions, responses, and rebuttals. Direct case
submissions shall be filed within sixty (60) calendar days following
the effective date of a Commission notice initiating a rate of return
proceeding pursuant to Sec. 65.101b). Rate of return submissions
responsive to the direct case submissions shall be filed within sixty
(60) calendar days after the deadline for filing direct case
submissions. Rebuttal submissions shall be field within twenty-one (21)
calendar days after the deadline for filing responsive submissions.
(c) Petitions for exclusion from unitary treatment and for
individual treatment may be filed on the same date as the deadline for
filing responsive rate of return submissions. Oppositions shall be
filed within 35 calendar days thereafter. Rebuttal submissions shall be
filed within 21 calendar days after the deadline for filing responsive
submissions.
(d) An original and 4 copies of all rate of return submissions
shall be filed with the Secretary.
(e) The filing party shall serve a copy of each rate of return
submission, other than an initial submission, on all participants who
have filed a designation of service notice pursuant to Sec. 65.100(b).
7. Section 65.104 is revised to read as follows:
Sec. 65.104 Page limitations for rate of return submissions.
Rate of return submissions, including all argument, attachments,
appendices, supplements, and supporting materials, such as testimony,
data and documents, but excluding tables of contents and summaries of
argument, shall be subject to the following double spaced typewritten
page limits:
(a) The direct case submission of any participant shall not exceed
70 pages in length.
(b) The responsive submission of any participant shall not exceed
70 pages in length.
(c) The rebuttal submission of any participant shall not exceed 50
pages in length.
(d) Petitions for exclusion from unitary treatment shall not exceed
70 pages in length. Oppositions to petitions for exclusion shall not
exceed 50 pages in length. Rebuttals shall not exceed 35 pages in
length.
8. Section 65.105 is revised to read as follows:
Sec. 65.105 Discovery.
(a) Participants shall file with each rate of return submission
copies of all information, including studies, financial analysts'
reports, and any other documents relied upon by participants or their
experts in the preparation of their submission. Information filed
pursuant to this paragraph for which protection from disclosure is
sought shall be filed subject to protective orders which shall be duly
granted by the Chief, Common Carrier Bureau, for good cause shown.
(b) Participants may file written interrogatories and requests for
documents directed to any rate of return submission and not otherwise
filed pursuant to Sec. 65.105(a). The permissible [[Page 28545]] scope
of examination is that participants may be examined upon any matter,
not privileged, that will demonstrably lead to the production of
material, relevant, decisionally significant evidence.
(c) Discovery requests pursuant to Sec. 65.105(b), including
written interrogatories, shall be filed within 14 calendar days after
the filing of the rate of return submission to which the request is
directed. Discovery requests that are not opposed shall be complied
with within 14 calendar days of the request date.
(d) Oppositions to discovery requests made pursuant to
Sec. 65.105(b), including written interrogatories, shall be filed
within 7 calendar days after requests are filed. The Chief, Common
Carrier Bureau, shall rule upon any such opposition. Except as stayed
by the Commission or a Court, any required response to a discovery
request that is opposed shall be provided within 14 calendar days after
release of the ruling of the Chief, Common Carrier Bureau.
(e) An original and 4 copies of all information described in
Sec. 65.105(a) and all requests, oppositions, and responses made
pursuant to Secs. 65.105 (a), (b) and (d) shall be filed with the
Secretary.
(f) Service of requests, oppositions, and responses made pursuant
to Secs. 65.105 (b), and (d) shall be made upon all participants who
have filed a designation of service notice pursuant to Sec. 65.100(b).
Service of requests upon participants who have filed designation of
service notices pursuant to Sec. 65.100(b) shall be made by hand on the
filing dates thereof.
Sec. 65.106 [Removed]
9. Section 65.106 is removed.
Secs. 65.200, 65.201, 65.400 and 65.510 [Removed]
10. Sections 65.200, 65.201, 65.400 and 65.510 are removed.
11. Section 65.300 is revised to read as follows:
Sec. 65.300 Calculations of the components and weights of the cost of
capital.
(a) Sections 65.301 through 65.303 specify the calculations that
are to be performed in computing cost of debt, cost of preferred stock,
and financial structure weights for prescription proceedings. The
calculations shall determine, where applicable, a composite cost of
debt, a composite cost of preferred stock, and a composite financial
structure for all local exchange carriers with annual revenues in
excess of $100 million. The calculations shall be based on data
reported to the Commission in FCC Report 43-02. (See 47 CFR 43.21). The
results of the calculations shall be used in the represcription
proceeding to which they relate unless the record in that proceeding
shows that their use would be unreasonable.
(b) Excluded from cost of capital calculations made pursuant to
Sec. 65.300 shall be those sources of financing that are not investor
supplied, or that are otherwise subtracted from a carrier's rate base
pursuant to Commission orders governing the calculation of net rate
base amounts in tariff filings that are made pursuant to section 203 of
the Communications Act of 1934, 47 U.S.C. 203, or that were treated as
``zero cost'' sources of financing in section 450 and subpart G of this
Part 65. Specifically excluded are: accounts payable, accrued taxes,
accrued interest, dividends payable, deferred credits and operating
reserves, deferred taxes and deferred tax credits.
12. Section 65.301 is revised to read as follows:
Sec. 65.301 Cost of equity.
The cost of equity shall be determined in represcription
proceedings after giving full consideration to the evidence in the
record, including such evidence as the Commission may officially
notice.
13. Section 65.302 is revised to read as follows:
Sec. 65.302 Cost of debt.
The formula for determining the cost of debt is equal to:
[GRAPHIC][TIFF OMITTED]TR01JN95.000
Where:
``Total Annual Interest Expense'' is the total interest expense for
the most recent two years for all local exchange carriers with annual
revenues of $100 million or more.
``Average Outstanding Debt'' is the average of the total debt for
the most recent two years for all local exchange carriers with annual
revenues of $100 million or more.
14. Section 65.303 is revised to read as follows:
Sec. 65.303 Cost of preferred stock.
The formula for determining the cost of preferred stock is:
[GRAPHIC][TIFF OMITTED]TR01JN95.001
Where:
``Total Annual Preferred Dividends'' is the total dividends on
preferred stock for the most recent two years for all local exchange
carriers with annual revenues of $100 million or more. ``Proceeds from
the Issuance of Preferred Stock'' is the average of the total net
proceeds from the issuance of preferred stock for the most recent two
years for all local exchange carriers with annual revenues of $100
million or more.
15. Section 65.304 is revised to read as follows:
Sec. 65.304 Capital structure.
The proportion of each cost of capital component in the capital
structure is equal to:
Proportion in the capital structure =
[GRAPHIC][TIFF OMITTED]TR01JN95.002
[[Page 28546]]
Where:
``Book Value of particular component'' is the total of the book
values of that component for all local exchange carriers with annual
revenues of $100 million or more.
``Book Value of Debt+Book Value of Preferred Stock+Book Value of
Equity'' is the total of the book values of all the components for all
local exchange carriers with annual revenues of $100 million or more.
The total of all proportions shall equal 1.00.
15. A new Sec. 65.305 is added to read as follows:
Sec. 65.305 Calculation of the weighted average cost of capital.
(a) The composite weighted average cost of capital is the sum of
the cost of debt, the cost of preferred stock, and the cost of equity,
each weighted by its proportion in the capital structure of the
telephone companies.
(b) Unless the Commission determines to the contrary in a
prescription proceeding, the composite weighted average cost of debt
and cost of preferred stock is the composite weight computed in
accordance with Sec. 65.304 multiplied by the composite cost of the
component computed in accordance with Sec. 65.301 or Sec. 65.302, as
applicable. The composite weighted average cost of equity will be
determined in each prescription proceeding.
16. A new Sec. 65.306 is added to read as follows:
Sec. 65.306 Calculation accuracy.
In a prescription proceeding, the final determinations of the cost
of equity, cost of debt, cost of preferred stock and their capital
structure weights shall be accurate to two decimal places.
17. Section 65.500 is revised to read as follows:
Sec. 65.500 Net income.
The net income methodology specified in Sec. 65.450 shall be
utilized by all interexchange carriers that are so designated by
Commission order.
18. Section 65.600(b) is revised to read as follows:
Sec. 65.600 Rate of return reports.
* * * * *
(b) Each local exchange carrier or group of affiliated carriers
which is not subject to Secs. 61.41 through 61.49 of this chapter and
which has filed individual access tariffs during the preceding
enforcement period shall file with the Commission, within three (3)
months after the end of each calendar quarter, a quarterly rate of
return monitoring report. Each report shall contain two parts. The
first part shall contain rate of return information on a cumulative
basis from the start of the enforcement period through the end of the
quarter being reported. The second part shall contain similar
information for the most recent quarter. The final quarterly monitoring
report for the entire enforcement period shall be considered the
enforcement period report. Reports shall be filed on the appropriate
report form prescribed by the Commission (see Sec. 1.795 of this
chapter) and shall provide full and specific answers to all questions
propounded and information requested in the currently effective report
form. The number of copies to be filed shall be specified in the
applicable report form. At least one copy of the report shall be signed
on the signature page by the responsible officer. A copy of each report
shall be retained in the principal office of the respondent and shall
be filed in such manner as to be readily available for reference and
inspection. Final adjustments to the enforcement period shall be made
by September 30 of the year following the enforcement period to ensure
that any refunds can be properly reflected in an annual access filing.
* * * * *
Sec. 65.700 [Amended]
19. In Sec. 65.700, paragraph (c) is removed and paragraph (d) is
redesignated as paragraph (c).
20. Section 65.701 is revised to read as follows:
Sec. 65.701 Period of review.
For both exchange and interexchange carriers subject to this part,
interstate earnings shall be measured over a two year period to
determine compliance with the maximum allowable rate of return. The
review periods shall commence on January 1 in odd-numbered years and
shall end on December 31 in even-numbered years.
Sec. 65.702 [Amended]
21. In Sec. 65.702, paragraph (a) is removed and paragraphs (b) and
(c) are redesignated as (a) and (b) respectively.
Sec. 65.703 [Removed]
Section 65.703 is removed.
[FR Doc. 95-13380 Filed 5-31-95; 8:45 am]
BILLING CODE 6712-01-M
