[Federal Register Volume 61, Number 83 (Monday, April 29, 1996)]
[Notices]
[Page 18731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10497]




[[Page 18731]]

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FEDERAL COMMUNICATIONS COMMISSION

[DA 96-556]


Citizens Utilities Company Permanent Cost Allocation Manual for 
the Separation of Regulated and Nonregulated Costs

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This Memorandum Opinion and Order (``MO&O'') addresses the 
accounting treatment for nonregulated uncollectible revenue and the 
treatment of affiliate transactions involving nonregulated activities. 
The MO&O states that the Commission's rules preclude the netting of 
uncollectibles related to nonregulated activities in Account 5280, 
Nonregulated operating revenue. The MO&O requires carriers to include 
all nonregulated uncollectible revenue in Accounts 5301, Uncollectible 
revenue-telecommunications, and 5302, Uncollectible revenue-other. The 
MO&O allows subject carriers six months from the publication of this 
notice to comply with its accounting directive.

DATES: Compliance must be on or before October 28, 1996.

FOR FURTHER INFORMATION CONTACT: Alicia Dunnigan, Common Carrier 
Bureau, Accounting and Audits Division, (202) 418-0807.

SUPPLEMENTARY INFORMATION: This is the synopsis of the MO&O in AAD 94-
6, adopted April 8, 1996, and released April 22, 1996.
    The complete text of the MO&O is available for inspection and 
copying in the Accounting and Audits Division public reference room, 
2000 L Street N.W., Suite 812, Washington, D.C.
    Copies are also available from International Transcription Service, 
Inc., at 2100 M Street NW., Suite 140, Washington, D.C. 20037, or call 
(202) 857-3800.
    The MO&O addresses issues raised by the parties in their petitions 
for reconsideration of a December 27, 1994, order approving the cost 
allocation manual of Citizens Utilities Company.
    The parties requested reconsideration of the requirement that 
uncollectible revenue associated with nonregulated activities be 
recorded in the uncollectible revenue accounts instead of the 
nonregulated revenue account. The MO&O, states that Sections 32.5301 
and 32.5302 of the Commission's rules precludes carriers from netting 
nonregulated uncollectibles in Account 5280. The MO&O requires carriers 
that have previously been netting uncollectible nonregulated revenue in 
Account 5280 to comply with the Commission's rules within six months.
    The parties requested reconsideration of the statement that the 
terms of affiliate transactions in which the telephone company provides 
nonregulated services to its affiliated companies must comply with the 
Commission's affiliate transactions rules. The MO&O states that when a 
nonregulated activity is accounted for within the system prescribed in 
Part 32 of the Commission's rules, pursuant to Section 32.23(c), the 
transactions between the carrier performing that nonregulated activity 
and a nonregulated affiliate are subject to the affiliate transactions 
rules of Section 32.27.
    Accordingly, it is ordered, pursuant to Sections 1, 4(i), 4(j), and 
220 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
154(i), 154(j), and 220, and Section 553(b)(A) of the Administrative 
Procedures Act, 5 U.S.C. Sec. 553(b)(A),<SUP>1 and Sections 0.91, 
0.291, and 1.106 of the Commission's rules, 47 CFR Secs. 0.91, 0.291, 
and 1.106, that the Petitions for Reconsideration filed by Southwestern 
Bell Telephone Company, BellSouth Telecommunications, Inc., and the 
United States Telephone Association are granted to the extent indicated 
in this Order and are otherwise denied.

    \1\ Section 553(b)(A) allows an agency to interpret its rules 
without notice and comment.
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Federal Communications Commission.
Regina M. Keeney,
Chief, Common Carrier Bureau.
[FR Doc. 96-10497 Filed 4-26-96; 8:45 am]
BILLING CODE 6712-01-P