DA # 95-1712

     Released:  August 18,1995  
     
      
Comment Date:  September 8, 1995  
Reply Comment Date:  September 22, 1995

                              ANNUAL UPDATES

COMMENTS INVITED ON DEPRECIATION RATE PRESCRIPTIONS PROPOSED FOR
DOMESTIC TELEPHONE CARRIERS.

The Common Carrier Bureau invites comments on proposed depreciation rates for six local
exchange carriers. The proposed depreciation rates for those carriers were developed as a result
of two Commission Orders in Docket No. 92-296 on Simplification of the Depreciation
Prescription Process. The Second Report and Order established ranges (projection life and future
net salvage) for 22 plant categories, and the Third Report and Order established ranges for an
additional eight plant categories.  Under those orders, price cap carriers scheduled for review in 
1996 or 1997 were given the opportunity to file for changes in their depreciation rates for 1995
provided they use basic factors within the ranges the Commission adopted.

For those accounts that met the range criteria adopted by the Commission, these six carriers
submitted studies proposing revised depreciation rates based upon the ranges. For the remaining
accounts, the updated depreciation rates under consideration here represent updates for rates
which were fully reviewed and discussed by the staffs of this Bureau and the respective state
commissions and prescribed by this Commission in prior orders. Those previously prescribed rates
have now been updated to reflect the accounting experience (i.e., plant additions and retirements
and net salvage amounts) that occurred in 1993 and/or 1994, while the basic factors (projection
lives and future net salvages) remain unchanged.  The rates filed by the carriers are consistent
with those proposed by the Bureau staff for all carriers except Ameritech-Illinois and Ameritech-
Ohio.  Ameritech filed different rates for two accounts in Illinois (Underground Cable-Metallic
and Underground Cable-Nonmetallic) and one account in Ohio (Underground Cable-Metallic). 
The rates filed by Ameritech for these accounts are higher than those proposed by the Bureau
staff. 

The Attachment lists the six carriers and the affected jurisdictions.  The Attachment also lists the
proposed expenses and composite rates for the carriers, the current expenses and composite rates
(developed using the currently prescribed depreciation rates and amortizations), and the
percentage change in expenses (proposed vs. current). These expenses are estimated annual
amounts and may not be applicable for the entire year.





Copies of the carriers' annual update depreciation rate study submissions and rate filings are
available for public inspection in Suite 257, 2000 L Street, N.W., Washington, D.C. Copying
facilities are available in Suite 812, 2000 L Street, N.W. Copies are also available from the
International Transcription Service, Room 246, 1919 M Street, N.W., Washington, D.C.

Parties wishing to file comments on the proposals summarized herein may do so by September
8, 1995. Replies may be filed by September 22, 1995. Comments and reply comments should
include in the caption a reference to file no. AAD # 95-123. A copy of the comments and replies
should be provided to the Chief, Depreciation Rates Branch.

We will treat this proceeding as non-restricted for purposes of the ex parte rules. See generally
47 C.F.R.  1.1200-1.1216.

For additional information contact Ms. Fatina Franklin, Chief, Depreciation Rates Branch, 202-
418-0840.

Attachment