28546 Federal Register / Vol. 60, No. 105 / Thursday, June 1, 1995 / Rules and Regulations

Where:

‘‘Book Value of particular

component’’ is the total of the book

values of that component for all local

exchange carriers with annual revenues

of $100 million or more.

‘‘Book Value of Debt+Book Value of

Preferred Stock+Book Value of Equity’’

is the total of the book values of all the

components for all local exchange

carriers with annual revenues of $100

million or more.

The total of all proportions shall equal

1.00.

15. A new § 65.305 is added to read as

follows:

§ 65.305 Calculation of the weighted

average cost of capital.

(a) The composite weighted average

cost of capital is the sum of the cost of

debt, the cost of preferred stock, and the

cost of equity, each weighted by its

proportion in the capital structure of the

telephone companies.

(b) Unless the Commission

determines to the contrary in a

prescription proceeding, the composite

weighted average cost of debt and cost

of preferred stock is the composite

weight computed in accordance with

§ 65.304 multiplied by the composite

cost of the component computed in

accordance with § 65.301 or § 65.302, as

applicable. The composite weighted

average cost of equity will be

determined in each prescription

proceeding.

16. A new § 65.306 is added to read

as follows:

§ 65.306 Calculation accuracy.

In a prescription proceeding, the final

determinations of the cost of equity, cost

of debt, cost of preferred stock and their

capital structure weights shall be

accurate to two decimal places.

17. Section 65.500 is revised to read

as follows:

§ 65.500 Net income.

The net income methodology

specified in § 65.450 shall be utilized by

all interexchange carriers that are so

designated by Commission order.

18. Section 65.600(b) is revised to

read as follows:

§ 65.600 Rate of return reports.

* * * * *

(b) Each local exchange carrier or

group of affiliated carriers which is not

subject to §§ 61.41 through 61.49 of this

chapter and which has filed individual

access tariffs during the preceding

enforcement period shall file with the

Commission, within three (3) months

after the end of each calendar quarter,

a quarterly rate of return monitoring

report. Each report shall contain two

parts. The first part shall contain rate of

return information on a cumulative

basis from the start of the enforcement

period through the end of the quarter

being reported. The second part shall

contain similar information for the most

recent quarter. The final quarterly

monitoring report for the entire

enforcement period shall be considered

the enforcement period report. Reports

shall be filed on the appropriate report

form prescribed by the Commission (see

§ 1.795 of this chapter) and shall

provide full and specific answers to all

questions propounded and information

requested in the currently effective

report form. The number of copies to be

filed shall be specified in the applicable

report form. At least one copy of the

report shall be signed on the signature

page by the responsible officer. A copy

of each report shall be retained in the

principal office of the respondent and

shall be filed in such manner as to be

readily available for reference and

inspection. Final adjustments to the

enforcement period shall be made by

September 30 of the year following the

enforcement period to ensure that any

refunds can be properly reflected in an

annual access filing.

* * * * *

§ 65.700 [Amended]

19. In § 65.700, paragraph (c) is

removed and paragraph (d) is

redesignated as paragraph (c).

20. Section 65.701 is revised to read

as follows:

§ 65.701 Period of review.

For both exchange and interexchange

carriers subject to this part, interstate

earnings shall be measured over a two

year period to determine compliance

with the maximum allowable rate of

return. The review periods shall

commence on January 1 in oddnumbered years and shall end on

December 31 in even-numbered years.

§ 65.702 [Amended]

21. In § 65.702, paragraph (a) is

removed and paragraphs (b) and (c) are

redesignated as (a) and (b) respectively.

§ 65.703 [Removed]

Section 65.703 is removed.

[FR Doc. 95–13380 Filed 5–31–95; 8:45 am]

BILLING CODE 6712–01–M

47 CFR Part 74

[MM Docket No. 93–24]

Experimental, Auxiliary, and Special

Broadcast and Other Program

Distributional Services; ITFS Filing

Window; Correction

AGENCY: Federal Communications

Commission.

ACTION: Final rule; correction.

SUMMARY: This document contains

corrections to the Federal Register

summary of the Report and Order in

MM Docket No. 93–24, which was

published April 25, 1995 (60 FR 20241).

The Federal Register summary

contained regulation related to the

Instructional Television Fixed Service.

EFFECTIVE DATE: May 25, 1995.

FOR FURTHER INFORMATION CONTACT:

Clay Pendarvis (202) 418–1600.

Need for Correction

As published, the FR Notice gave an

erroneous effective date for the above

Order which may prove to be

misleading and is in need of

clarification.

Correction of Publication

Accordingly, the publication of the

April 25, 1995, FR Notice 95–10024 is

corrected as follows:

Paragraph 1. On page 20241, in the

second column, after the phrase

‘‘EFFECTIVE DATE’’ is revised to read:

‘‘The change to the rules adopted in the

Commission’s Report and Order in MM

Docket No. 93–24 will become effective

May 25, 1995.

Paragraph 2. On page 20246, in third

column, line seven of paragraph 47,

after the word ‘‘effective’’ is corrected to

read ‘‘May 25, 1995’’.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 95–13292 Filed 5–31–95; 8:45 am]

BILLING CODE 6712–01–M