[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: 47CFR65.302] [Page 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. 65.302 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 equal to or above the indexed revenue threshold as defined in Sec. 32.9000. ``Average Outstanding Debt'' is the average of the total debt for the most recent two years for all local exchange carriers with annual revenues equal to or above the indexed revenue threshold as defined in Sec. 32.9000. [60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]