HISTORICAL BFP PER-LINE

  --------------------- -------------------- -------------------------------------- ----------------
  [State]{.underline}   [COSA]{.underline}   [Company Name]{.underline}             

  IL                    GAIL                 Verizon Illinois (summary GTE)         \$6.71

  IN                    GAIN                 Verizon Indiana (summary GTE/Contel)   \$6.71

  MI                    GAMI                 Verizon Michigan (summary GTE/Contel)  \$7.44

  MO                    COMT                 Verizon Missouri (summary Contel)      \$10.67

  PA                    COPT                 Verizon Pennsylvania (summary Contel)  \$6.01

  SC                    GTST                 Verizon So. Carolina (summary          \$7.71
                                             GTE/Contel)                            

  CA                    GTCA                 Verizon California Inc.                \$6.04

  CA                    COCA                 Verizon California Inc.                \$6.73

  NV                    CONV                 Verizon California Inc.                \$7.90

  FL                    GTFL                 Verizon Florida Inc.                   \$7.62

  HI                    GTHI                 Verizon Hawaii Inc.                    \$7.08

  MO                    GTMO                 Verizon Midwest Inc.                   \$11.91

  OH                    GTOH                 Verizon North Inc.                     \$6.98

  PA                    GTPA                 Verizon North Inc.                     \$6.74

  WI                    GTWI                 Verizon North Inc.                     \$7.59

  IL                    COIL                 Verizon North Inc.                     \$5.31

  IN                    COIN                 Verizon North Inc.                     \$5.83

  ID                    GTID                 Verizon Northwest Inc.                 \$15.55

  OR                    GTOR                 Verizon Northwest Inc.                 \$7.22

  WA                    GTWA                 Verizon Northwest Inc.                 \$6.67

  WA                    COWA                 Verizon Northwest Inc.                 \$5.68

  AL                    GTAL                 Verizon South Alabama Inc.             \$12.95

  KY                    GTKY                 Verizon South Inc.                     \$8.52

  NC                    GTNC                 Verizon South Carolina Inc.            \$9.75

  VA                    GTVA                 Verizon South Inc.                     \$12.31

  KY                    COKY                 Verizon South Inc.                     \$14.14

  NC                    CONC                 Verizon South Inc.                     \$9.25

  VA                    COVA                 Verizon South Inc.                     \$7.11

  TX                    GTTX                 Verizon Southwest Inc.                 \$8.12

  TX                    COTX                 Verizon Southwest Inc.                 \$10.01

  AL                    COAL                 Verizon South Inc.                     \$16.64

  [State]{.underline}   [COSA]{.underline}   [Company Name]{.underline}             

  DC                    CDDC                 Verizon Washington DC Inc.             \$4.38

  MD                    CMMD                 Verizon Maryland Inc.                  \$5.60

  VA                    CVVA                 Verizon Virginia Inc.                  \$6.57

  WV                    CWWV                 Verizon West Virginia Inc.             \$7.73

  NJ                    NJNJ                 Verizon New Jersey Inc.                \$6.14

  PA                    PAPA                 Verizon Pennsylvania Inc.              \$5.97

  DE                    DSDE                 Verizon Delaware Inc.                  \$6.51

  NY/NE                 NXTR                 Verizon New York/New England           \$6.17
  --------------------- -------------------- -------------------------------------- ----------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON ILLINOIS (SUMMARY                                                                                                        
  GTE)]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GAIL]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       504                                                       504

  1060                         Uncollectible Revenues                       680                                                       680

  1190                         Total Operating Expenses                     28,437                        3,276                       31,713

  1290                         Other Operating Income/Loss                  -41                                                       -41

  1390                         Total Non-Operating Items                    -14                                                       -14

  1490                         Total Other Taxes                            3,727                                                     3,727

  1510                         Fixed Charges                                2,593                                                     2,593

  1520                         IRS Income Adjustments                       550                                                       550

  1530                         FCC Taxable Income Adjustments               5                                                         5

  1540                         ITC Amortization                             172                                                       172

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             5,722                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       240,743                                                   240,743

  1790                         Total Other Investment                       39,331                                                    39,331

  1890                         Total Reserves                               163,126                                                   163,126

  1910                         Average Net Investment = Line                116,949                                                   116,949
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              13,157                                                    13,157

  2150                         Access Lines (Whole Number) = Avg                                                                      677,013
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           51,246                      3,276
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON INDIANA (SUMMARY                                                                                                         
  GTE/CONTEL)]{.underline}**                                                                                                          

  **[STUDY AREA:                                                                                                                      
  GAIN]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       1,715                                                     1,715

  1060                         Uncollectible Revenues                       448                                                       448

  1190                         Total Operating Expenses                     34,118                        4,355                       38,473

  1290                         Other Operating Income/Loss                  23                                                        23

  1390                         Total Non-Operating Items                    -27                                                       -27

  1490                         Total Other Taxes                            5,964                                                     5,964

  1510                         Fixed Charges                                5,258                                                     5,258

  1520                         IRS Income Adjustments                       670                                                       670

  1530                         FCC Taxable Income Adjustments               11                                                        11

  1540                         ITC Amortization                             159                                                       159

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             4,578                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       284,837                                                   284,837

  1790                         Total Other Investment                       28,164                                                    28,164

  1890                         Total Reserves                               192,698                                                   192,698

  1910                         Average Net Investment = Line                120,303                                                   120,303
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              13,534                                                    13,534

  2150                         Access Lines (Whole Number) = Avg                                                                      760,623
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           56,878                      4,355
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON MICHIGAN (SUMMARY                                                                                                        
  GTE/CONTEL)]{.underline}**                                                                                                          

  **[STUDY AREA:                                                                                                                      
  GAMI]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       185                                                       185

  1060                         Uncollectible Revenues                       656                                                       656

  1190                         Total Operating Expenses                     35,765                        3,280                       39,045

  1290                         Other Operating Income/Loss                  5                                                         5

  1390                         Total Non-Operating Items                    -23                                                       -23

  1490                         Total Other Taxes                            5,008                                                     5,008

  1510                         Fixed Charges                                3,431                                                     3,431

  1520                         IRS Income Adjustments                       599                                                       599

  1530                         FCC Taxable Income Adjustments               3                                                         3

  1540                         ITC Amortization                             194                                                       194

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             7,241                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       289,749                                                   289,749

  1790                         Total Other Investment                       46,628                                                    46,628

  1890                         Total Reserves                               186,769                                                   186,769

  1910                         Average Net Investment = Line                149,608                                                   149,608
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              16,831                                                    16,831

  2150                         Access Lines (Whole Number) = Avg                                                                      768,287
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           65,288                      3,280
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON MISSOURI (SUMMARY                                                                                                        
  CONTEL)]{.underline}**                                                                                                              

  **[STUDY AREA:                                                                                                                      
  COMT]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       485                                                       485

  1060                         Uncollectible Revenues                       348                                                       348

  1190                         Total Operating Expenses                     19,198                        1,171                       20,369

  1290                         Other Operating Income/Loss                  -56                                                       -56

  1390                         Total Non-Operating Items                    1                                                         1

  1490                         Total Other Taxes                            1,471                                                     1,471

  1510                         Fixed Charges                                1,508                                                     1,508

  1520                         IRS Income Adjustments                       89                                                        89

  1530                         FCC Taxable Income Adjustments               10                                                        10

  1540                         ITC Amortization                             206                                                       206

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             2,817                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       129,861                                                   129,861

  1790                         Total Other Investment                       6,109                                                     6,109

  1890                         Total Reserves                               71,718                                                    71,718

  1910                         Average Net Investment = Line                64,252                                                    64,252
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              7,228                                                     7,228

  2150                         Access Lines (Whole Number) = Avg                                                                      248,476
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           30,634                      1,171
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON PENNSYLVANIA                                                                                                             
  (SUMMARY                                                                                                                            
  CONTEL)]{.underline}**                                                                                                              

  **[STUDY AREA:                                                                                                                      
  COPT]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       226                                                       226

  1060                         Uncollectible Revenues                       46                                                        46

  1190                         Total Operating Expenses                     4,561                         514                         5,075

  1290                         Other Operating Income/Loss                  0                                                         0

  1390                         Total Non-Operating Items                    -6                                                        -6

  1490                         Total Other Taxes                            1,124                                                     1,124

  1510                         Fixed Charges                                413                                                       413

  1520                         IRS Income Adjustments                       28                                                        28

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             7                                                         7

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             592                         
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       34,145                                                    34,145

  1790                         Total Other Investment                       3,572                                                     3,572

  1890                         Total Reserves                               24,346                                                    24,346

  1910                         Average Net Investment = Line                13,371                                                    13,371
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              1,504                                                     1,504

  2150                         Access Lines (Whole Number) = Avg                                                                      112,516
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           7,595                       514
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON SO. CAROLINA                                                                                                             
  (SUMMARY                                                                                                                            
  GTE/CONTEL)]{.underline}**                                                                                                          

  **[STUDY AREA:                                                                                                                      
  GTST]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       456                                                       456

  1060                         Uncollectible Revenues                       363                                                       363

  1190                         Total Operating Expenses                     11,563                        1,396                       12,959

  1290                         Other Operating Income/Loss                  0                                                         0

  1390                         Total Non-Operating Items                    -3                                                        -3

  1490                         Total Other Taxes                            1,849                                                     1,849

  1510                         Fixed Charges                                1,003                                                     1,003

  1520                         IRS Income Adjustments                       217                                                       217

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             51                                                        51

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             1,439                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       72,320                                                    72,320

  1790                         Total Other Investment                       3,866                                                     3,866

  1890                         Total Reserves                               44,155                                                    44,155

  1910                         Average Net Investment = Line                32,031                                                    32,031
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              3,603                                                     3,603

  2150                         Access Lines (Whole Number) = Avg                                                                      213,628
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           18,358                      1,396
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON CALIFORNIA                                                                                                               
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTCA]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       9,882                                                     9,882

  1060                         Uncollectible Revenues                       4,768                                                     4,768

  1190                         Total Operating Expenses                     171,175                       19,571                      190,746

  1290                         Other Operating Income/Loss                  352                                                       352

  1390                         Total Non-Operating Items                    202                                                       202

  1490                         Total Other Taxes                            27,114                                                    27,114

  1510                         Fixed Charges                                17,462                                                    17,462

  1520                         IRS Income Adjustments                       4,381                                                     4,381

  1530                         FCC Taxable Income Adjustments               61                                                        61

  1540                         ITC Amortization                             813                                                       813

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             20,296                      
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       1,240,425                                                 1,240,425

  1790                         Total Other Investment                       150,786                                                   150,786

  1890                         Total Reserves                               919,777                                                   919,777

  1910                         Average Net Investment = Line                471,434                                                   471,434
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              53,036                                                    53,036

  2150                         Access Lines (Whole Number) = Avg                                                                      3,947,694
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           266,358                     19,571
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON CALIFORNIA                                                                                                               
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  COCA]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       490                                                       490

  1060                         Uncollectible Revenues                       549                                                       549

  1190                         Total Operating Expenses                     15,627                        1,964                       17,591

  1290                         Other Operating Income/Loss                  -4                                                        -4

  1390                         Total Non-Operating Items                    17                                                        17

  1490                         Total Other Taxes                            2,815                                                     2,815

  1510                         Fixed Charges                                2,218                                                     2,218

  1520                         IRS Income Adjustments                       126                                                       126

  1530                         FCC Taxable Income Adjustments               13                                                        13

  1540                         ITC Amortization                             127                                                       127

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             2,343                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       148,656                                                   148,656

  1790                         Total Other Investment                       4,412                                                     4,412

  1890                         Total Reserves                               92,689                                                    92,689

  1910                         Average Net Investment = Line                60,379                                                    60,379
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              6,793                                                     6,793

  2150                         Access Lines (Whole Number) = Avg                                                                      366,540
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           27,657                      1,964
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON CALIFORNIA                                                                                                               
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  CONV]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       38                                                        38

  1060                         Uncollectible Revenues                       85                                                        85

  1190                         Total Operating Expenses                     1,837                         322                         2,159

  1290                         Other Operating Income/Loss                  0                                                         0

  1390                         Total Non-Operating Items                    -17                                                       -17

  1490                         Total Other Taxes                            78                                                        78

  1510                         Fixed Charges                                215                                                       215

  1520                         IRS Income Adjustments                       13                                                        13

  1530                         FCC Taxable Income Adjustments               1                                                         1

  1540                         ITC Amortization                             -10                                                       -10

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             402                         
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       16,424                                                    16,424

  1790                         Total Other Investment                       684                                                       684

  1890                         Total Reserves                               8,939                                                     8,939

  1910                         Average Net Investment = Line                8,169                                                     8,169
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              919                                                       919

  2150                         Access Lines (Whole Number) = Avg                                                                      37,862
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           3,266                       322
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON FLORIDA                                                                                                                  
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTFL]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       5,628                                                     5,628

  1060                         Uncollectible Revenues                       2,122                                                     2,122

  1190                         Total Operating Expenses                     133,487                       14,663                      148,150

  1290                         Other Operating Income/Loss                  -13                                                       -13

  1390                         Total Non-Operating Items                    62                                                        62

  1490                         Total Other Taxes                            14,692                                                    14,692

  1510                         Fixed Charges                                12,057                                                    12,057

  1520                         IRS Income Adjustments                       1,238                                                     1,238

  1530                         FCC Taxable Income Adjustments               54                                                        54

  1540                         ITC Amortization                             509                                                       509

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             15,675                      
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       806,282                                                   806,282

  1790                         Total Other Investment                       53,495                                                    53,495

  1890                         Total Reserves                               492,396                                                   492,396

  1910                         Average Net Investment = Line                367,381                                                   367,381
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              41,330                                                    41,330

  2150                         Access Lines (Whole Number) = Avg                                                                      2,367,014
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           201,754                     14,663
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON HAWAII                                                                                                                   
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTHI]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       1,146                                                     1,146

  1060                         Uncollectible Revenues                       588                                                       588

  1190                         Total Operating Expenses                     32,454                        5,453                       37,907

  1290                         Other Operating Income/Loss                  1                                                         1

  1390                         Total Non-Operating Items                    -1                                                        -1

  1490                         Total Other Taxes                            1,777                                                     1,777

  1510                         Fixed Charges                                4,673                                                     4,673

  1520                         IRS Income Adjustments                       620                                                       620

  1530                         FCC Taxable Income Adjustments               18                                                        18

  1540                         ITC Amortization                             167                                                       167

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             5,592                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       240,298                                                   240,298

  1790                         Total Other Investment                       40,491                                                    40,491

  1890                         Total Reserves                               148,366                                                   148,366

  1910                         Average Net Investment = Line                132,423                                                   132,423
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              14,898                                                    14,898

  2150                         Access Lines (Whole Number) = Avg                                                                      701,479
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           54,161                      5,453
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON MIDWEST                                                                                                                  
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTMO]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       153                                                       153

  1060                         Uncollectible Revenues                       149                                                       149

  1190                         Total Operating Expenses                     8,859                         479                         9,338

  1290                         Other Operating Income/Loss                  -24                                                       -24

  1390                         Total Non-Operating Items                    -1                                                        -1

  1490                         Total Other Taxes                            968                                                       968

  1510                         Fixed Charges                                460                                                       460

  1520                         IRS Income Adjustments                       85                                                        85

  1530                         FCC Taxable Income Adjustments               3                                                         3

  1540                         ITC Amortization                             34                                                        34

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             976                         
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       38,330                                                    38,330

  1790                         Total Other Investment                       2,295                                                     2,295

  1890                         Total Reserves                               20,336                                                    20,336

  1910                         Average Net Investment = Line                20,289                                                    20,289
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              2,282                                                     2,282

  2150                         Access Lines (Whole Number) = Avg                                                                      95,047
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           13,105                      479
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON NORTH                                                                                                                    
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTOH]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       266                                                       266

  1060                         Uncollectible Revenues                       881                                                       881

  1190                         Total Operating Expenses                     43,548                        4,472                       48,020

  1290                         Other Operating Income/Loss                  3                                                         3

  1390                         Total Non-Operating Items                    36                                                        36

  1490                         Total Other Taxes                            4,293                                                     4,293

  1510                         Fixed Charges                                3,779                                                     3,779

  1520                         IRS Income Adjustments                       783                                                       783

  1530                         FCC Taxable Income Adjustments               32                                                        32

  1540                         ITC Amortization                             263                                                       263

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             6,731                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       306,334                                                   306,334

  1790                         Total Other Investment                       45,684                                                    45,684

  1890                         Total Reserves                               207,874                                                   207,874

  1910                         Average Net Investment = Line                144,144                                                   144,144
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              16,216                                                    16,216

  2150                         Access Lines (Whole Number) = Avg                                                                      906,140
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           71,436                      4,472
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON NORTH                                                                                                                    
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTPA]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       1,001                                                     1,001

  1060                         Uncollectible Revenues                       179                                                       179

  1190                         Total Operating Expenses                     22,833                        2,533                       25,366

  1290                         Other Operating Income/Loss                  -6                                                        -6

  1390                         Total Non-Operating Items                    10                                                        10

  1490                         Total Other Taxes                            5,587                                                     5,587

  1510                         Fixed Charges                                2,213                                                     2,213

  1520                         IRS Income Adjustments                       444                                                       444

  1530                         FCC Taxable Income Adjustments               2                                                         2

  1540                         ITC Amortization                             121                                                       121

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             4,158                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       178,298                                                   178,298

  1790                         Total Other Investment                       29,259                                                    29,259

  1890                         Total Reserves                               120,131                                                   120,131

  1910                         Average Net Investment = Line                87,426                                                    87,426
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              9,835                                                     9,835

  2150                         Access Lines (Whole Number) = Avg                                                                      545,685
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           41,608                      2,533
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
  **[VERIZON NORTH                                                                                                                    
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTWI]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       272                                                       272

  1060                         Uncollectible Revenues                       100                                                       100

  1190                         Total Operating Expenses                     18,022                        1,925                       19,947

  1290                         Other Operating Income/Loss                  -74                                                       -74

  1390                         Total Non-Operating Items                    -23                                                       -23

  1490                         Total Other Taxes                            2,899                                                     2,899

  1510                         Fixed Charges                                1,856                                                     1,856

  1520                         IRS Income Adjustments                       359                                                       359

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             136                                                       136

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             3,587                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       159,192                                                   159,192

  1790                         Total Other Investment                       18,423                                                    18,423

  1890                         Total Reserves                               101,618                                                   101,618

  1910                         Average Net Investment = Line                75,997                                                    75,997
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              8,550                                                     8,550

  2150                         Access Lines (Whole Number) = Avg                                                                      382,579
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           32,936                      1,925
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON NORTH                                                                                                                    
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  COIL]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       28                                                        28

  1060                         Uncollectible Revenues                       230                                                       230

  1190                         Total Operating Expenses                     4,779                         654                         5,433

  1290                         Other Operating Income/Loss                  -28                                                       -28

  1390                         Total Non-Operating Items                    -7                                                        -7

  1490                         Total Other Taxes                            746                                                       746

  1510                         Fixed Charges                                514                                                       514

  1520                         IRS Income Adjustments                       17                                                        17

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             44                                                        44

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             523                         
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       42,097                                                    42,097

  1790                         Total Other Investment                       3,418                                                     3,418

  1890                         Total Reserves                               31,344                                                    31,344

  1910                         Average Net Investment = Line                14,171                                                    14,171
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              1,594                                                     1,594

  2150                         Access Lines (Whole Number) = Avg                                                                      133,592
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           7,867                       654
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON NORTH                                                                                                                    
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  COIN]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       55                                                        55

  1060                         Uncollectible Revenues                       205                                                       205

  1190                         Total Operating Expenses                     7,363                         959                         8,322

  1290                         Other Operating Income/Loss                  2                                                         2

  1390                         Total Non-Operating Items                    -16                                                       -16

  1490                         Total Other Taxes                            1,206                                                     1,206

  1510                         Fixed Charges                                727                                                       727

  1520                         IRS Income Adjustments                       45                                                        45

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             33                                                        33

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             1,037                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       62,993                                                    62,993

  1790                         Total Other Investment                       4,133                                                     4,133

  1890                         Total Reserves                               43,106                                                    43,106

  1910                         Average Net Investment = Line                24,020                                                    24,020
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              2,702                                                     2,702

  2150                         Access Lines (Whole Number) = Avg                                                                      191,447
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           12,440                      959
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON NORTHWEST                                                                                                                
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTID]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       219                                                       219

  1060                         Uncollectible Revenues                       145                                                       145

  1190                         Total Operating Expenses                     15,420                        1,483                       16,903

  1290                         Other Operating Income/Loss                  0                                                         0

  1390                         Total Non-Operating Items                    2                                                         2

  1490                         Total Other Taxes                            1,675                                                     1,675

  1510                         Fixed Charges                                1,067                                                     1,067

  1520                         IRS Income Adjustments                       157                                                       157

  1530                         FCC Taxable Income Adjustments               1                                                         1

  1540                         ITC Amortization                             32                                                        32

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             1,369                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       65,779                                                    65,779

  1790                         Total Other Investment                       4,261                                                     4,261

  1890                         Total Reserves                               38,547                                                    38,547

  1910                         Average Net Investment = Line                31,493                                                    31,493
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              3,543                                                     3,543

  2150                         Access Lines (Whole Number) = Avg                                                                      125,522
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           21,935                      1,483
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON NORTHWEST                                                                                                                
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTOR]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       804                                                       804

  1060                         Uncollectible Revenues                       401                                                       401

  1190                         Total Operating Expenses                     20,807                        4,237                       25,044

  1290                         Other Operating Income/Loss                  0                                                         0

  1390                         Total Non-Operating Items                    -95                                                       -95

  1490                         Total Other Taxes                            3,902                                                     3,902

  1510                         Fixed Charges                                2,558                                                     2,558

  1520                         IRS Income Adjustments                       287                                                       287

  1530                         FCC Taxable Income Adjustments               2                                                         2

  1540                         ITC Amortization                             64                                                        64

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             3,596                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       158,279                                                   158,279

  1790                         Total Other Investment                       10,972                                                    10,972

  1890                         Total Reserves                               88,090                                                    88,090

  1910                         Average Net Investment = Line                81,161                                                    81,161
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              9,131                                                     9,131

  2150                         Access Lines (Whole Number) = Avg                                                                      475,182
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           36,938                      4,237
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON NORTHWEST                                                                                                                
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTWA]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       616                                                       616

  1060                         Uncollectible Revenues                       619                                                       619

  1190                         Total Operating Expenses                     31,094                        8,002                       39,096

  1290                         Other Operating Income/Loss                  0                                                         0

  1390                         Total Non-Operating Items                    -62                                                       -62

  1490                         Total Other Taxes                            2,462                                                     2,462

  1510                         Fixed Charges                                4,155                                                     4,155

  1520                         IRS Income Adjustments                       638                                                       638

  1530                         FCC Taxable Income Adjustments               12                                                        12

  1540                         ITC Amortization                             94                                                        94

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             5,886                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       254,414                                                   254,414

  1790                         Total Other Investment                       18,338                                                    18,338

  1890                         Total Reserves                               142,044                                                   142,044

  1910                         Average Net Investment = Line                130,708                                                   130,708
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              14,705                                                    14,705

  2150                         Access Lines (Whole Number) = Avg                                                                      775,503
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           54,088                      8,002
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON NORTHWEST                                                                                                                
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  COWA]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       36                                                        36

  1060                         Uncollectible Revenues                       105                                                       105

  1190                         Total Operating Expenses                     3,655                         477                         4,132

  1290                         Other Operating Income/Loss                  0                                                         0

  1390                         Total Non-Operating Items                    -10                                                       -10

  1490                         Total Other Taxes                            244                                                       244

  1510                         Fixed Charges                                524                                                       524

  1520                         IRS Income Adjustments                       39                                                        39

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             -1                                                        -1

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             560                         
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       33,761                                                    33,761

  1790                         Total Other Investment                       1,315                                                     1,315

  1890                         Total Reserves                               21,548                                                    21,548

  1910                         Average Net Investment = Line                13,528                                                    13,528
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              1,522                                                     1,522

  2150                         Access Lines (Whole Number) = Avg                                                                      95,675
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           6,040                       477
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON SOUTH ALABAMA                                                                                                            
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTAL]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       234                                                       234

  1060                         Uncollectible Revenues                       280                                                       280

  1190                         Total Operating Expenses                     18,661                        1,073                       19,734

  1290                         Other Operating Income/Loss                  0                                                         0

  1390                         Total Non-Operating Items                    9                                                         9

  1490                         Total Other Taxes                            723                                                       723

  1510                         Fixed Charges                                923                                                       923

  1520                         IRS Income Adjustments                       250                                                       250

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             55                                                        55

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             1,391                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       66,483                                                    66,483

  1790                         Total Other Investment                       3,693                                                     3,693

  1890                         Total Reserves                               39,832                                                    39,832

  1910                         Average Net Investment = Line                30,344                                                    30,344
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              3,414                                                     3,414

  2150                         Access Lines (Whole Number) = Avg                                                                      162,860
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           24,244                      1,073
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON SOUTH                                                                                                                    
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTKY]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       842                                                       842

  1060                         Uncollectible Revenues                       455                                                       455

  1190                         Total Operating Expenses                     25,946                        2,920                       28,866

  1290                         Other Operating Income/Loss                  1                                                         1

  1390                         Total Non-Operating Items                    -2                                                        -2

  1490                         Total Other Taxes                            3,429                                                     3,429

  1510                         Fixed Charges                                2,383                                                     2,383

  1520                         IRS Income Adjustments                       816                                                       816

  1530                         FCC Taxable Income Adjustments               3                                                         3

  1540                         ITC Amortization                             166                                                       166

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             3,408                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       173,802                                                   173,802

  1790                         Total Other Investment                       14,764                                                    14,764

  1890                         Total Reserves                               114,184                                                   114,184

  1910                         Average Net Investment = Line                74,382                                                    74,382
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              8,368                                                     8,368

  2150                         Access Lines (Whole Number) = Avg                                                                      427,253
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           40,761                      2,920
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON SOUTH CAROLINA                                                                                                           
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTNC]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       769                                                       769

  1060                         Uncollectible Revenues                       302                                                       302

  1190                         Total Operating Expenses                     13,799                        2,189                       15,988

  1290                         Other Operating Income/Loss                  8                                                         8

  1390                         Total Non-Operating Items                    -29                                                       -29

  1490                         Total Other Taxes                            1,414                                                     1,414

  1510                         Fixed Charges                                2,044                                                     2,044

  1520                         IRS Income Adjustments                       77                                                        77

  1530                         FCC Taxable Income Adjustments               1                                                         1

  1540                         ITC Amortization                             45                                                        45

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             1,513                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       87,608                                                    87,608

  1790                         Total Other Investment                       6,682                                                     6,682

  1890                         Total Reserves                               50,702                                                    50,702

  1910                         Average Net Investment = Line                43,588                                                    43,588
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              4,904                                                     4,904

  2150                         Access Lines (Whole Number) = Avg                                                                      199,288
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           21,125                      2,189
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON SOUTH                                                                                                                    
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTVA]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       68                                                        68

  1060                         Uncollectible Revenues                       63                                                        63

  1190                         Total Operating Expenses                     3,592                         302                         3,894

  1290                         Other Operating Income/Loss                  11                                                        11

  1390                         Total Non-Operating Items                    -8                                                        -8

  1490                         Total Other Taxes                            258                                                       258

  1510                         Fixed Charges                                341                                                       341

  1520                         IRS Income Adjustments                       44                                                        44

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             16                                                        16

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             296                         
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       15,551                                                    15,551

  1790                         Total Other Investment                       1,969                                                     1,969

  1890                         Total Reserves                               9,590                                                     9,590

  1910                         Average Net Investment = Line                7,930                                                     7,930
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              892                                                       892

  2150                         Access Lines (Whole Number) = Avg                                                                      35,975
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           5,014                       302
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON SOUTH                                                                                                                    
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  COKY]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       114                                                       114

  1060                         Uncollectible Revenues                       197                                                       197

  1190                         Total Operating Expenses                     11,967                        602                         12,569

  1290                         Other Operating Income/Loss                  0                                                         0

  1390                         Total Non-Operating Items                    -2                                                        -2

  1490                         Total Other Taxes                            847                                                       847

  1510                         Fixed Charges                                689                                                       689

  1520                         IRS Income Adjustments                       43                                                        43

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             39                                                        39

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             929                         
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       49,337                                                    49,337

  1790                         Total Other Investment                       2,850                                                     2,850

  1890                         Total Reserves                               30,125                                                    30,125

  1910                         Average Net Investment = Line                22,062                                                    22,062
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              2,482                                                     2,482

  2150                         Access Lines (Whole Number) = Avg                                                                      99,655
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           16,306                      602
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON SOUTH                                                                                                                    
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  CONC]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       87                                                        87

  1060                         Uncollectible Revenues                       143                                                       143

  1190                         Total Operating Expenses                     9,510                         780                         10,290

  1290                         Other Operating Income/Loss                  0                                                         0

  1390                         Total Non-Operating Items                    -26                                                       -26

  1490                         Total Other Taxes                            799                                                       799

  1510                         Fixed Charges                                771                                                       771

  1520                         IRS Income Adjustments                       27                                                        27

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             60                                                        60

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             1,093                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       59,263                                                    59,263

  1790                         Total Other Investment                       2,962                                                     2,962

  1890                         Total Reserves                               36,048                                                    36,048

  1910                         Average Net Investment = Line                26,177                                                    26,177
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              2,945                                                     2,945

  2150                         Access Lines (Whole Number) = Avg                                                                      136,559
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           14,377                      780
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON SOUTH                                                                                                                    
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  COVA]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       1,080                                                     1,080

  1060                         Uncollectible Revenues                       631                                                       631

  1190                         Total Operating Expenses                     26,790                        4,174                       30,964

  1290                         Other Operating Income/Loss                  -1                                                        -1

  1390                         Total Non-Operating Items                    -2                                                        -2

  1490                         Total Other Taxes                            4,863                                                     4,863

  1510                         Fixed Charges                                4,492                                                     4,492

  1520                         IRS Income Adjustments                       122                                                       122

  1530                         FCC Taxable Income Adjustments               3                                                         3

  1540                         ITC Amortization                             113                                                       113

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             2,857                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       187,696                                                   187,696

  1790                         Total Other Investment                       9,032                                                     9,032

  1890                         Total Reserves                               107,882                                                   107,882

  1910                         Average Net Investment = Line                88,846                                                    88,846
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              9,995                                                     9,995

  2150                         Access Lines (Whole Number) = Avg                                                                      565,617
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           44,055                      4,174
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON SOUTHWEST                                                                                                                
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  GTTX]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       3,809                                                     3,809

  1060                         Uncollectible Revenues                       3,270                                                     3,270

  1190                         Total Operating Expenses                     88,383                        11,454                      99,836

  1290                         Other Operating Income/Loss                  3                                                         3

  1390                         Total Non-Operating Items                    -48                                                       -48

  1490                         Total Other Taxes                            8,929                                                     8,929

  1510                         Fixed Charges                                7,770                                                     7,770

  1520                         IRS Income Adjustments                       1,353                                                     1,353

  1530                         FCC Taxable Income Adjustments               31                                                        31

  1540                         ITC Amortization                             733                                                       733

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             12,487                      
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       626,049                                                   626,049

  1790                         Total Other Investment                       39,096                                                    39,096

  1890                         Total Reserves                               383,644                                                   383,644

  1910                         Average Net Investment = Line                281,502                                                   281,502
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              31,669                                                    31,669

  2150                         Access Lines (Whole Number) = Avg                                                                      1,562,632
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           140,877                     11,454
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON SOUTHWEST                                                                                                                
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  COTX]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       62                                                        62

  1060                         Uncollectible Revenues                       163                                                       163

  1190                         Total Operating Expenses                     8,130                         640                         8,770

  1290                         Other Operating Income/Loss                  -1                                                        -1

  1390                         Total Non-Operating Items                    1                                                         1

  1490                         Total Other Taxes                            581                                                       581

  1510                         Fixed Charges                                567                                                       567

  1520                         IRS Income Adjustments                       22                                                        22

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             44                                                        44

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             906                         
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       53,573                                                    53,573

  1790                         Total Other Investment                       1,794                                                     1,794

  1890                         Total Reserves                               34,440                                                    34,440

  1910                         Average Net Investment = Line                20,927                                                    20,927
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              2,354                                                     2,354

  2150                         Access Lines (Whole Number) = Avg                                                                      105,831
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           12,075                      640
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON SOUTH                                                                                                                    
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  COAL]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       302                                                       302

  1060                         Uncollectible Revenues                       443                                                       443

  1190                         Total Operating Expenses                     19,895                        590                         20,485

  1290                         Other Operating Income/Loss                  0                                                         0

  1390                         Total Non-Operating Items                    -1                                                        -1

  1490                         Total Other Taxes                            467                                                       467

  1510                         Fixed Charges                                527                                                       527

  1520                         IRS Income Adjustments                       57                                                        57

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             105                                                       105

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             952                         
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       51,527                                                    51,527

  1790                         Total Other Investment                       1,227                                                     1,227

  1890                         Total Reserves                               30,192                                                    30,192

  1910                         Average Net Investment = Line                22,562                                                    22,562
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              2,538                                                     2,538

  2150                         Access Lines (Whole Number) = Avg                                                                      123,087
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           23,992                      590
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON WASHINGTON D.C.                                                                                                          
  INC.]{.underline}**                                                                                                                 

  **[STUDY                                                                                                                            
  AREA:CDDC]{.underline}**                                                                                                            

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       12,672                                                    12,672

  1060                         Uncollectible Revenues                       361                                                       361

  1190                         Total Operating Expenses                     32,865                        8,288                       41,153

  1290                         Other Operating Income/Loss                  0                                                         0

  1390                         Total Non-Operating Items                    -222                                                      -222

  1490                         Total Other Taxes                            8,259                                                     8,259

  1510                         Fixed Charges                                1,575                                                     1,575

  1520                         IRS Income Adjustments                       67                                                        67

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             71                                                        71

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             3,174                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       158,421                                                   158,421

  1790                         Total Other Investment                       4,543                                                     4,543

  1890                         Total Reserves                               95,360                                                    95,360

  1910                         Average Net Investment = Line                67,604                                                    67,604
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              7,605                                                     7,605

  2150                         Access Lines (Whole Number) = Avg                                                                      906,187
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           39,370                      8,288
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON MARYLAND                                                                                                                 
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  CMMD]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       10,783                                                    10,783

  1060                         Uncollectible Revenues                       1,334                                                     1,334

  1190                         Total Operating Expenses                     172,173                       18,561                      190,734

  1290                         Other Operating Income/Loss                  20                                                        20

  1390                         Total Non-Operating Items                    -1,163                                                    -1,163

  1490                         Total Other Taxes                            16,998                                                    16,998

  1510                         Fixed Charges                                11,775                                                    11,775

  1520                         IRS Income Adjustments                       -469                                                      -469

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             648                                                       648

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             15,738                      
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       892,116                                                   892,116

  1790                         Total Other Investment                       32,820                                                    32,820

  1890                         Total Reserves                               539,845                                                   539,845

  1910                         Average Net Investment = Line                385,091                                                   385,091
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              43,323                                                    43,323

  2150                         Access Lines (Whole Number) = Avg                                                                      3,811,106
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           237,600                     18,561
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON VIRGINIA                                                                                                                 
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  CVVA]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       9,905                                                     9,905

  1060                         Uncollectible Revenues                       1,005                                                     1,005

  1190                         Total Operating Expenses                     176,260                       30,330                      206,590

  1290                         Other Operating Income/Loss                  2                                                         2

  1390                         Total Non-Operating Items                    -939                                                      -939

  1490                         Total Other Taxes                            13,054                                                    13,054

  1510                         Fixed Charges                                12,283                                                    12,283

  1520                         IRS Income Adjustments                       -41                                                       -41

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             793                                                       793

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             20,013                      
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       1,022,564                                                 1,022,564

  1790                         Total Other Investment                       33,827                                                    33,827

  1890                         Total Reserves                               596,333                                                   596,333

  1910                         Average Net Investment = Line                460,058                                                   460,058
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              51,757                                                    51,757

  2150                         Access Lines (Whole Number) = Avg                                                                      3,572,792
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           251,242                     30,330
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON WEST VIRGINIA                                                                                                            
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  CWWV]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       2,490                                                     2,490

  1060                         Uncollectible Revenues                       333                                                       333

  1190                         Total Operating Expenses                     53,131                        4,349                       57,480

  1290                         Other Operating Income/Loss                  1                                                         1

  1390                         Total Non-Operating Items                    -238                                                      -238

  1490                         Total Other Taxes                            6,235                                                     6,235

  1510                         Fixed Charges                                3,046                                                     3,046

  1520                         IRS Income Adjustments                       6                                                         6

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             431                                                       431

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             4,348                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       304,480                                                   304,480

  1790                         Total Other Investment                       7,488                                                     7,488

  1890                         Total Reserves                               202,218                                                   202,218

  1910                         Average Net Investment = Line                109,750                                                   109,750
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              12,347                                                    12,347

  2150                         Access Lines (Whole Number) = Avg                                                                      841,098
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           73,665                      4,349
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON NEW JERSEY                                                                                                               
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  NJNJ]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       19,521                                                    19,521

  1060                         Uncollectible Revenues                       1,783                                                     1,783

  1190                         Total Operating Expenses                     323,578                       37,599                      361,177

  1290                         Other Operating Income/Loss                  -564                                                      -564

  1390                         Total Non-Operating Items                    -1,348                                                    -1,348

  1490                         Total Other Taxes                            28,072                                                    28,072

  1510                         Fixed Charges                                18,321                                                    18,321

  1520                         IRS Income Adjustments                       111                                                       111

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             1,297                                                     1,297

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             30,240                      
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       1,615,752                                                 1,615,752

  1790                         Total Other Investment                       56,711                                                    56,711

  1890                         Total Reserves                               978,455                                                   978,455

  1910                         Average Net Investment = Line                694,008                                                   694,008
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              78,076                                                    78,076

  2150                         Access Lines (Whole Number) = Avg                                                                      6,501,910
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           441,444                     37,599
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON PENNSYLVANIA                                                                                                             
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  PAPA]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       16,996                                                    16,996

  1060                         Uncollectible Revenues                       2,462                                                     2,462

  1190                         Total Operating Expenses                     309,776                       32,225                      342,001

  1290                         Other Operating Income/Loss                  6                                                         6

  1390                         Total Non-Operating Items                    -1,839                                                    -1,839

  1490                         Total Other Taxes                            17,697                                                    17,697

  1510                         Fixed Charges                                20,730                                                    20,730

  1520                         IRS Income Adjustments                       20                                                        20

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             1,479                                                     1,479

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             28,274                      
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       1,656,479                                                 1,656,479

  1790                         Total Other Investment                       48,486                                                    48,486

  1890                         Total Reserves                               1,016,567                                                 1,016,567

  1910                         Average Net Investment = Line                688,398                                                   688,398
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              77,445                                                    77,445

  2150                         Access Lines (Whole Number) = Avg                                                                      6,265,297
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           416,813                     32,225
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON DELAWARE                                                                                                                 
  INC.]{.underline}**                                                                                                                 

  **[STUDY AREA:                                                                                                                      
  DSDE]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       1,385                                                     1,385

  1060                         Uncollectible Revenues                       391                                                       391

  1190                         Total Operating Expenses                     31,676                        2,791                       34,467

  1290                         Other Operating Income/Loss                  1                                                         1

  1390                         Total Non-Operating Items                    -102                                                      -102

  1490                         Total Other Taxes                            570                                                       570

  1510                         Fixed Charges                                1,686                                                     1,686

  1520                         IRS Income Adjustments                       -22                                                       -22

  1530                         FCC Taxable Income Adjustments               0                                                         0

  1540                         ITC Amortization                             126                                                       126

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             2,899                       
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       158,836                                                   158,836

  1790                         Total Other Investment                       2,823                                                     2,823

  1890                         Total Reserves                               95,426                                                    95,426

  1910                         Average Net Investment = Line                66,233                                                    66,233
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              7,451                                                     7,451

  2150                         Access Lines (Whole Number) = Avg                                                                      567,296
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           41,499                      2,791
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------
                                                                                                                                      

  **[VERIZON NEW YORK/NEW                                                                                                             
  ENGLAND]{.underline}**                                                                                                              

  **[STUDY AREA:                                                                                                                      
  NXTR]{.underline}**                                                                                                                 

  **[2000 BFP FROM                                                                                                                    
  SEPARATIONS]{.underline}**                                                                                                          

  **[(\$000)]{.underline}**                                                                                                           

                                                                                                                                      

  **ARMIS**                                                                 **BFP EXCL.**                                             **BFP WITH**

  **43 - 01**                                                               **MARKETING**                 **MARKETING**               **MARKETING**

  **[Row]{.underline}**        **[Description]{.underline}**                **[EXPENSE\*]{.underline}**   **[EXPENSE]{.underline}**   **[ADJUSTMENT]{.underline}**

                                                                            **(A)**                       **(B)**                     **C=(A+B)**

                                                                                                                                      

  1040                         Miscellaneous Revenues                       110,022                                                   110,022

  1060                         Uncollectible Revenues                       9,636                                                     9,636

  1190                         Total Operating Expenses                     941,775                       124,365                     1,066,140

  1290                         Other Operating Income/Loss                  -17                                                       -17

  1390                         Total Non-Operating Items                    -7,525                                                    -7,525

  1490                         Total Other Taxes                            91,506                                                    91,506

  1510                         Fixed Charges                                68,949                                                    68,949

  1520                         IRS Income Adjustments                       4,720                                                     4,720

  1530                         FCC Taxable Income Adjustments               199                                                       199

  1540                         ITC Amortization                             1,895                                                     1,895

  1550                         FCC ITC Adjustment                           0                                                         0

  1590                         Net FIT = Line                                                             65,449                      
                               ((1915-1510+1520+1530-1540-1550) x                                                                     
                               .35/.65)-1540-1550                                                                                     

  1690                         Total Plant-In-Service                       4,484,037                                                 4,484,037

  1790                         Total Other Investment                       166,490                                                   166,490

  1890                         Total Reserves                               2,952,819                                                 2,952,819

  1910                         Average Net Investment = Line                1,697,708                                                 1,697,708
                               1690+1790-1890                                                                                         

  1915                         Net Return = Line 1910 x 11.25%              190,992                                                   190,992

  2150                         Access Lines (Whole Number) = Avg                                                                      17,647,836
                               1999/2000                                                                                              

                                                                                                                                      

                               BFP - Revenue Requirement = Line                                           1,181,828                   124,365
                               1190+1490+1590+1915+1060-1040-1290+1390                                                                

                               BFP Rev. Req. per Line per Month = (BFP                                                                
                               Revenue Req. \* 1000 / Line 2150) / 12                                                                 

                                                                                                                                      
  ---------------------------- ----------------------------------------- -- ----------------------------- --------------------------- ------------------------------

Description of Historic Base Factor Portion (BFP) Study Methodology

BFP costs represent non-traffic sensitive revenue requirements
associated with the common line or local "loop" connecting an end-user's
home or business to the incumbent local exchange carrier's central
office. These costs are developed through application of the FCC's Part
36 Jurisdictional Separations Procedures and Part 69 Access Charge
rules.

The attached tables provide a summary of Verizon's historical calendar
year 2000 interstate BFP costs per line and backup details of the
development of per-line BFP costs, by study area. The BFP revenue
requirement cost components and end user demand are based on the Year
2000 ARMIS 43-01 report. The revenue requirement is calculated according
to the method prescribed by the Commission in the 1997 Annual Access
Tariff Filing Designation Order.[^1] The ARMIS BFP data were adjusted
for the following items: (1) assignment of all interstate marketing
expenses to BFP to make the BFP per line comparable to the Price Cap CMT
per line; (2) removal of the partial year effect of telephone exchanges
that were sold during the calendar year; and (3) removal of the BFP
impact of the New York State Gross Income Tax (GIT). The three
adjustments identified above were used to normalize Verizon's 2000 BFP
revenue requirements. Then Verizon developed per- line BFP costs by
dividing the normalized BFP revenue requirements by average calendar
period ARMIS 43-01 access lines. The prior year access lines included in
the average year calculation were also adjusted to remove the effect of
exchanges that were sold. For tariff entities that are comprised of
multiple study areas, an aggregate BFP per line was developed by summing
the revenue requirements for the component study areas and dividing by
the sum of the average access lines for the same study areas.

[^1]: ***See*** *1997 Annual Access Tariff Filings*, 12 FCC Rcd 11417, ¶
    17 and Appendix B (1997).