[Code of Federal Regulations]
[Title 47, Volume 3]
[Revised as of October 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR65.300]

[Page 357-358]
 
                       TITLE 47--TELECOMMUNICATION
 
        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
 
PART 65_INTERSTATE RATE OF RETURN PRESCRIPTION PROCEDURES AND METHODOLOGIES
--Table of Contents
 
                       Subpart C_Exchange Carriers
 
Sec. 65.300  Calculations of the components and weights of the cost 
of capital.


    (a) Sections 65.301 through 65.303 specify the calculations that are 
to be performed in computing cost of debt, cost of preferred stock, and 
financial structure weights for prescription proceedings. The 
calculations shall determine, where applicable, a composite cost of 
debt, a composite cost of preferred stock, and a composite financial 
structure for all local exchange carriers with annual revenues equal to 
or above the indexed revenue threshold as defined in Sec. 32.9000. The 
calculations shall be based on data reported to the Commission in FCC 
Report 43-02. (See 47 CFR 43.21). The results of the calculations shall 
be used in the represcription proceeding to which they relate unless the 
record in that proceeding shows that their use would be unreasonable.
    (b) Excluded from cost of capital calculations made pursuant to 
Sec. 65.300 shall be those sources of financing that are not investor 
supplied, or that are otherwise subtracted from a carrier's

[[Page 358]]

rate base pursuant to Commission orders governing the calculation of net 
rate base amounts in tariff filings that are made pursuant to section 
203 of the Communications Act of 1934, 47 U.S.C. 203, or that were 
treated as ``zero cost'' sources of financing in section 450 and subpart 
G of this part 65. Specifically excluded are: accounts payable, accrued 
taxes, accrued interest, dividends payable, deferred credits and 
operating reserves, deferred taxes and deferred tax credits.

[60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]