Sec.  43.43   Reports of proposed changes in depreciation rates.

   (a) Each communication common carrier with annual operating expenses that
   equal or exceed the indexed revenue threshold, as defined in  Sec. 32.9000, and
   that has been found by this Commission to be a dominant carrier with respect
   to  any communications service shall, before making any changes in the
   depreciation  rates  applicable  to  its operated plant, file with the
   Commission  a  report  furnishing the data described in the subsequent
   paragraphs of this section, and also comply with the other requirements
   thereof.

   (b) Each such report shall contain the following:

   (1) A schedule showing for each class and subclass of plant (whether or not
   the depreciation rate is proposed to be changed) an appropriate designation
   therefor, the depreciation rate currently in effect, the proposed rate, and
   the service-life and net-salvage estimates underlying both the current and
   proposed depreciation rates;

   (2) An additional schedule showing for each class and subclass, as well as
   the totals for all depreciable plant, (i) the book cost of plant at the most
   recent date available, (ii) the estimated amount of depreciation accruals
   determined by applying the currently effective rate to the amount of such
   book cost, (iii) the estimated amount of depreciation accruals determined by
   applying the rate proposed to be used to the amount of such book cost, and
   (iv) the difference between the amounts determined in paragraphs (b)(2) (ii)
   and (iii) of this section;

   (3) A statement giving the reasons for the proposed change in each rate;

   (4) A statement describing the method or methods employed in the development
   of the service-life and salvage estimates underlying each proposed change in
   a depreciation rate; and

   (5) The date as of which the revised rates are proposed to be made effective
   in the accounts.

   (c) Except as specified in paragraphs (c)(1) and (c)(3) of this section,
   when the change in the depreciation rate proposed for any class or subclass
   of  plant (other than one occasioned solely by a shift in the relative
   investment in the several subclasses of the class of plant) amounts to
   twenty percent (20%) or more of the rate currently applied thereto, or when
   the proposed change will produce an increase or decrease of one percent (1%)
   or more of the aggregate depreciation charges for all depreciable plant
   (based on the amounts determined in compliance with paragraph (b)(2) of this
   section) the carrier shall supplement the data required by paragraph (b) of
   this section) with copies of the underlying studies, including calculations
   and charts, developed by the carrier to support service-life and net-salvage
   estimates. If a carrier must submit data of a repetitive nature to comply
   with this requirement, the carrier need only submit a fully illustrative
   portion thereof.

   (1) A Local Exchange Carrier regulated under price caps, pursuant to  Sec.  Sec. 61.41
   through 61.49 of this chapter, is not required to submit the supplemental
   information described in paragraph (c) introductory text of this section for
   a specific account if: The carrier's currently prescribed depreciation rate
   for the specific accounts derived from basic factors that fall within the
   basic factor ranges established for that same account; and the carrier's
   proposed depreciation rate for the specific account would also be derived
   from basic factors that fall within the basic factor ranges for the same
   account.

   (2) Local Exchange Carriers that are regulated under price caps, pursuant to
    Sec.  Sec. 61.41 through 61.49 of this chapter, and have selected basic factors that
   fall  within  the basic factor ranges for all accounts are exempt from
   paragraphs (b)(3), (b)(4), and (c) introductory text of this section. They
   shall instead comply with paragraphs (b)(1), (b)(2) and (b)(5) of this
   section and provide a book and theoretical reserve summary and a summary of
   basic factors underlying proposed rates by account.

   (3) Interexchange carriers regulated under price caps, pursuant to  Sec.  Sec. 61.41
   through 61.49 of this chapter, are exempted from submitting the supplemental
   information as described in paragraph (c) introductory text of this section.
   They shall instead submit: Generation data, a summary of basic factors
   underlying proposed depreciation rates by account and a short narrative
   supporting  those basic factors, including company plans of forecasted
   retirements and additions, recent annual retirements, salvage and cost of
   removal.

   (d) Each report shall be filed in duplicate and the original shall be signed
   by the responsible official to whom correspondence related thereto should be
   addressed.

   (e) Unless otherwise directed or approved by the Commission, the following
   shall be observed: Proposed changes in depreciation rates shall be filed at
   least ninety (90) days prior to the last day of the month with respect to
   which the revised rates are first to be applied in the accounts (e.g., if
   the new rates are to be first applied in the depreciation accounts for
   September, they must be filed on or before July 1). Such rates may be made
   retroactive to a date not prior to the beginning of the year in which the
   filing is made: Provided however, that in no event shall a carrier for which
   the Commission has prescribed depreciation rates make any changes in such
   rates unless the changes are prescribed by the Commission. Carriers who
   select  basic factors that fall within the basic factor ranges for all
   accounts are exempt from depreciation rate prescription by the Commission.

   (f) Any changes in depreciation rates that are made under the provisions of
   paragraph (e) of this section shall not be construed as having been approved
   by the Commission unless the carrier has been specifically so informed.

   [ 28 FR 13214 , Dec. 5, 1963, as amended at  30 FR 3223 , Mar. 9, 1965;  53 FR 49987 , Dec. 13, 1988;  58 FR 58790 , Nov. 4, 1993;  61 FR 50246 , Sept. 25,
   1996;  62 FR 39779 , July 24, 1997;  65 FR 18931 , Apr. 10, 2000]