Federal Register / Vol. 62, No. 61 / Monday, March 31, 1997 / Rules and Regulations 15117

standards are not applicable to the

actual language of State regulatory

programs and program amendments

since each such program is drafted and

promulgated by a specific State, not by

OSM. Under sections 503 and 505 of

SMCRA (30 U.S.C. 1253 and 1255) and

the Federal regulations at 30 CFR

730.11, 732.15, and 732.17(h)(10),

decisions on proposed State regulatory

programs and program amendments

submitted by the States must be based

solely on a determination of whether the

submittal is consistent with SMCRA and

its implementing Federal regulations

and whether the other requirements of

30 CFR Parts 730, 731, and 732 have

been met.

3. National Environmental Policy Act

No environmental impact statement is

required for this rule since section

702(d) of SMCRA (30 U.S.C. 1292(d))

provides that agency decisions on

proposed State regulatory program

provisions do not constitute major

Federal actions within the meaning of

section 102(2)(C) of the National

Environmental Policy Act (42 U.S.C.

4332(2)(C)).

4. Paperwork Reduction Act

This rule does not contain

information collection requirements that

require approval by OMB under the

Paperwork Reduction Act (44 U.S.C.

3507 et seq.).

5. Regulatory Flexibility Act

The Department of the Interior has

determined that this rule will not have

a significant economic impact on a

substantial number of small entities

under the Regulatory Flexibility Act (5

U.S.C. 601 et seq.). The State submittal

that is the subject of this rule is based

upon counterpart Federal regulations for

which an economic analysis was

prepared and certification made that

such regulations would not have a

significant economic effect upon a

substantial number of small entities.

Accordingly, this rule will ensure that

existing requirements previously

promulgated by OSM will be

implemented by the State. In making the

determination as to whether this rule

would have a significant economic

impact, the Department relied upon the

data and assumptions for the

counterpart Federal regulations.

6. Unfunded Mandates

This rule will not impose a cost of

$100 million or more in any given year

on any governmental entity or the

private sector.

List of Subjects in 30 CFR Part 902

Intergovernmental relations, Surface

mining, Underground mining.

Dated: March 13, 1997.

James F. Fulton,

Acting Regional Director, Western Regional

Coordinating Center.

For the reasons set out in the

preamble, Title 30, Chapter VII,

Subchapter T of the Code of Federal

Regulations is amended as set forth

below:

PART 902—ALASKA

1. The authority citation for part 902

continues to read as follows:

Authority: 30 U.S.C. 1201 et seq.

2. Section 902.15 is amended in the

table by adding a new entry in

chronological order by ‘‘Date of Final

Publication’’ to read as follows:

§ 902.15 Approval of Alaska regulatory

program amendments.

* * * * *

Original amendment submission date Date of final publication Citation/description

* * * * * * *

December 12, 1996 ........................................................... [Insert date of publication in the Federal

Register].

11 AAC 90.207(f) (3) and (8).

3. Section 902.16 is amended by

removing and reserving paragraph

(b)(1).

[FR Doc. 97–8104 Filed 3–28–97; 8:45 am]

BILLING CODE 4310–05–M

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 65

[CC Docket No. 96–22; FCC 97–56]

Interstate Rate of Return Prescription

Procedures and Methodologies

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: On February 19, 1997, the

Commission adopted a Report and

Order that amends the Commission’s

rules with respect to other

postretirement benefits other than

pensions (OPEBs). This Order also

denies an MCI petition for

reconsideration of the Commission’s

March 7, 1996, Order (Vacate Order),

that rescinded ratemaking instructions

for OPEBs given by the Common Carrier

Bureau in Responsible Accounting

Officer Letter No. 20 (RAO 20). The

intended effect of the rules is to

standardize the Commission’s rate base

rules with respect to similar types of

assets and liabilities.

EFFECTIVE DATE: April 30, 1997.

FOR FURTHER INFORMATION CONTACT:

Thaddeus Machcinski, Accounting and

Audits Division, Common Carrier

Bureau, (202) 418–0808.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s Report

and Order adopted February 19, 1997,

and released February 20, 1997. The full

text of this Commission decision is

available for inspection and copying

during normal business hours in the

FCC Public Reference Room (Room

230), 1919 M St., NW., Washington, DC.

The complete text of this decision may

also be purchased from the

Commission’s copy contractor,

International Transcription Service,

Suite 140, 2100 M Street, NW.,

Washington, DC 20037.

Summary of Report and Order

1. On March 7, 1996, the Commission

released an Order (Vacate Order), (61

FR 9968, March 12, 1996), rescinding

the rate base instructions issued by the

Common Carrier Bureau (Bureau) in

RAO 20. With that Order, we also issued

a Notice of Proposed Rulemaking

(NPRM) (61 FR 9968, March 12, 1996),

that proposed amendments to Part 65,

Subpart G to address the ratemaking

treatment of OPEBs.

2. On April 8, 1996, MCI filed a

Petition for Reconsideration of the

Vacate Order. MCI requests that the

Commission reconsider its decision to

rescind the rate base instructions for

OPEBs set forth in RAO 20.

3. In this Order, we amend Part 65 of

our rules to include OPEBs in

ratemaking and to remove all items
15118 Federal Register / Vol. 62, No. 61 / Monday, March 31, 1997 / Rules and Regulations

recorded in Account 4310, Other longterm liabilities, that were derived from

above-the-line expenses from the

interstate rate base. We also deny MCI’s

petition for reconsideration of the

Vacate Order.

4. In the NPRM, we proposed that

prepaid OPEBs recorded in Account

1410, Other noncurrent assets, should

be included in the interstate rate base.

In this Order, we have decided not to

adopt our proposal automatically to

include prepaid OPEBs in the interstate

rate base. We find our current rules are

adequate to determine what, if any, of

the assets recorded in Account 1410

should be included in the rate base.

Therefore, if a carrier can show that any

of its assets recorded in Account 1410

(including prepaid OPEBs) meet the

used-and-useful standard, we will allow

that asset to be included in the interstate

rate base. This decision is consistent

with our treatment of similar costs, such

as prepaid pension costs. A certain

amount of prepaid pension costs are

allowed in the rate base because these

costs can earn a return that later reduces

expenses. Thus, any prepaid OPEB costs

that meet the used and useful standard

will be included in the interstate rate

base.

5. In the NPRM, we also proposed to

amend § 65.830 to remove from the

interstate rate base the interstate portion

of all accrued liabilities recorded in

Account 4310, Other long-term

liabilities. In this Order we have

decided to modify our proposal so that

only those zero-cost sources of funds

that result from above-the-line expenses

are removed from the rate base. Thus,

only those liabilities recorded in

Account 4310 that are derived from the

expenses specified in § 65.450(a) will be

removed from the rate base.

6. In the NPRM, we noted that the

Bureau in RAO 20 directed carriers to

remove accrued OPEB liabilities

recorded in Account 4310, Other longterm liabilities, from their rate bases on

the basis that OPEB benefits are similar

to pension benefits, which are deducted

from the rate base pursuant to part 65.

The Bureau concluded that accrued

OPEB costs should receive similar rate

base treatment. We believe the Bureau

was correct in that conclusion.

Moreover, in the NPRM, we noted that

all accrued liabilities recorded in

Account 4310 represent zero-cost

sources of funds including accrued

pension and OPEB liabilities. We

therefore proposed to accord to all items

recorded in Account 4310 the same

treatment currently accorded to

pensions. After reviewing the comments

in this proceeding, we conclude that,

because the amounts recorded in

Account 4310 are zero-cost sources of

funds, rates should not provide a return

on those amounts. Accordingly, we

adopt our proposal except as modified

in the preceding paragraph.

7. Finally, we state that the

conclusion in the Vacate Order that the

Bureau did not have the delegated

authority to amend the Part 65 rules in

RAO 20 was correct. MCI’s petition for

reconsideration does not refute this

conclusion. Accordingly, the Order

denies MCI’s petition for

reconsideration.

Ordering Clauses

Accordingly, it is ordered, pursuant to

Section 4(i) and 405 of the

Communications Act of 1934, 47 U.S.C.

§§ 154(i) and 405 that the Petition for

Reconsideration filed April 8, 1996, by

MCI Telecommunications Corporation

is denied.

It is further ordered, that pursuant to

Sections 1, 4(i), 4(j), 201 through 205,

220, and 403 of the Communications

Act of 1934, as amended, 47 U.S.C.

§§ 151, 154(i), 154(j), 201 through 205,

220 and 403, Part 65, Subpart G of the

Commission’s Rules, 47 CFR Part 65,

Subpart G, is amended as shown below,

effective April 30, 1997.

It is further ordered, that the Secretary

shall serve a copy of this Order on each

state commission.

It is further ordered, that the Secretary

shall send a copy of this Report and

Order including the Final Regulatory

Flexibility Analysis, to the Chief

Counsel for Advocacy of the Small

Business Administration in accordance

with paragraph 605(b) of the Regulatory

Flexibility Act, Public Law 96–354, 94

Stat. 1164, 5 U.S.C. §§ 601 et seq. (1981).

List of Subjects in 47 CFR Part 65

Communications common carriers,

Reporting and recordkeeping

requirements.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Rule Changes

Part 65 of Title 47 of the Code of

Federal Regulations is amended as

follows:

1. The authority citation for part 65

continues to read as follows:

Authority: 47 U.S.C. 151, 154, 201, 202,

203, 204, 205, 218, 219, 220, 403.

2. Section 65.830 is amended by

revising paragraphs (a)(3) and (c) to read

as follows:

§ 65.830 Deducted items.

(a) * * *

(3) The interstate portion of other

long-term liabilities (Account 4310) that

were derived from the expenses

specified in § 65.450(a).

* * * * *

(c) The interstate portion of other

long-term liabilities (Account 4310)

shall bear the same proportionate

relationship as the interstate/intrastate

expenses which gave rise to the liability.

[FR Doc. 97–8040 Filed 3–28–97; 8:45 am]

BILLING CODE 6712–01–P

47 CFR Part 76

[MM Docket No. 92–266; FCC 97–87]

Low-Price Cable Television System

Rate Regulation

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: The Commission has adopted

a Report and Order regarding low-price

system rate regulation. The Report and

Order makes permanent the transition

relief afforded to low-price cable

television systems, and establishes final

rules for low-price system rate

regulation. Based on data received in a

cost survey conducted in the Fall of

1995, the Report and Order finds that

low-price system operators have lower

cash flow ratios and receive lower profit

margins for their low-price systems than

operators of systems already regulated

under the Commission’s revised

benchmark approach receive for their

systems. The Report and Order,

therefore, states that low-price system

rates are reasonable and that low-price

systems will not be required to reduce

their rates by the full competitive

differential or any lesser amount. Lowprice systems will be able to continue

charging for cable services in

accordance with the current rules for

such systems.

EFFECTIVE DATE: April 30, 1997.

ADDRESSES: In addition to filing

comments with the Secretary, a copy of

any comments on the information

collections contained herein should be

submitted to Dorothy Conway, Federal

Communications Commission, Room

234, 1919 M Street, NW., Washington,

DC 20554, or via the Internet to

dconway@fcc.gov, and to Timothy Fain,

OMB Desk Officer, 10236 NEOB, 725—

17th Street, NW., Washington, DC 20503

or via the Internet to fainlt@al.eop.gov.

FOR FURTHER INFORMATION CONTACT:

Rodney McDonald, Cable Services

Bureau, (202) 418–7200. For additional

information concerning the information

collections contained in the Report and