PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION 1919 M STREET, N.W. WASHINGTON, D.C. 20554 DA 96-1175 News media information 202/418-0500 Fax-On-Demand 202/418-2830 Internet: http://www.fcc.gov ftp.fcc.gov Released: August 7, 1996 Comment Date: August 28, 1996 Reply Comment Date: September 11, 1996 COMMENTS INVITED ON DEPRECIATION RATE PRESCRIPTIONS PROPOSED FOR DOMESTIC TELEPHONE CARRIERS. The Common Carrier Bureau invites comments on proposed depreciation rates and amortizations for seven local exchange carriers (LECs) and AT&T Alascom, Inc. The proposed rates for six of the LECs were developed in conjunction with the Commission's standard review procedures. The proposed rates for one LEC and AT&T Alascom were developed in conjunction with the Commission's streamlined annual update procedures. Each of the six carriers submitted studies to the Commission in support of its proposed depreciation rates. The carriers' submissions were reviewed by the staffs of the state public utility commissions and the Common Carrier Bureau. The carriers' studies and the corresponding staff reviews were discussed in correspondence, telephone conversations, and/or conferences. Each of the carriers thereafter formally filed updated studies which contained the data required by Section 43.43 of the Commission's rules. The rates filed by the carriers are consistent with those proposed by the Bureau staff except for GTE-South, Incorporated, GTE-Southwest, Incorporated, and Contel of California, Inc. Those three carriers filed rates that are higher than those proposed by the Common Carrier Bureau staff. The Attachment lists the eight carriers and the affected jurisdictions. This 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). The Bureau staff is recommending the life, salvage, and curve shape parameters which underlie the expenses and composite rates shown on the Attachment. These expenses are estimated annual amounts and may not reflect actual expenses because January 1, 1996 plant balances are used and the proposed rates may not be applicable for the entire year. Copies of the carriers' initial 1996 depreciation rate study submissions, the Common Carrier Bureau staff's preliminary reports on these submissions, the rate filings and other data supporting the proposed rates 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, Inc., Room 140, 2100 M Street, N.W., Washington, D.C. Parties wishing to file comments on the proposals summarized herein may do so by August 28, 1996. Replies may be filed by September 11, 1996. Comments and reply comments should include in the caption a reference to file no. AAD 96-79. A copy of the comments and replies should be provided to the Chief, Competitive Safeguards 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, Competitive Safeguards Branch, 202-418-0840. Attachment ATTACHMENT SUMMARY OF PROPOSED CHANGES IN ANNUAL DEPRECIATION EXPENSE BY JURISDICTION Annual Depreciation Expense and Composite Rate --------------------------------- Current Proposed Proposed Change --------- ----------- ---------- Carrier - Jurisdiction Investm ent Expe nse Per cent Expens e Perc ent Expe nse Percent --------------------------------- --------- ---- ----- ----- -- ------ ----- ------- - ----- ATTAC HMENT ($000) ($000 ) (%) ($000) (%) ($000 ) (%) ALASCOM, INC. 385,731 19,77 0 5.1 8,339 2.2 (11,4 31) -57. 8 817,412 56,00 5 6.9 56,373 6.9 368 0.7 GTE SOUTH, INC. Alabama 566,179 40,04 5 7.1 43,739 7.7 3,694 9.2 North Carolina 752,393 56,69 5 7.5 59,853 8.0 3,158 5.6 South Carolina 388,581 28,12 1 7.2 29,639 7.6 1,518 5.4 Virginia 1,045,4 97 68,12 0 6.5 79,431 7.6 11,31 1 16.6 GTE SOUTHWEST, INC. Arkansas 207,425 14,78 0 7.1 15,914 7.7 1,134 7.7 New Mexico 202,969 10,97 0 5.4 10,593 5.2 (377) -3.4 Oklahoma 239,051 14,48 8 6.1 14,751 6.2 263 1.8 Texas 4,067,3 61 265,8 81 6.5 305,471 7.5 39,59 0 14.9 NEW ENGLAND TELEPHONE COMPANY Maine 1,323,7 02 101,8 19 7.7 92,482 7.0 (9,33 7) -9.2 Massachusetts 7,669,6 75 548,4 17 7.2 581,300 7.6 32,88 3 6.0 New Hampshire 1,492,5 52 104,2 49 7.0 107,822 7.2 3,573 3.4 Rhode Island 901,431 70,00 8 7.8 66,475 7.4 (3,53 3) -5.0 Vermont 765,621 60,14 3 7.9 60,186 7.9 43 0.1 SOUTHERN NEW ENGLAND TELEPHONE COMPANY 3,993,9 12 297,4 82 7.4 330,502 8.3 33,02 0 11.1 SOUTHWESTERN BELL TELEPHONE COMPANY Arkansas 1,803,0 84 135,4 98 7.5 147,050 8.2 11,55 2 8.5 Kansas 2,124,7 96 134,9 90 6.4 151,114 7.1 16,12 4 11.9 Missouri 4,734,7 97 312,0 46 6.6 344,551 7.3 32,50 5 10.4 Oklahoma 2,759,4 86 167,4 25 6.1 187,917 6.8 20,49 2 12.2 Texas 16,005, 877 1,010 ,011 6.3 1,056,9 52 6.6 46,94 1 4.6 U S WEST COMMUNICATIONS, INC. Idaho 859,280 61,40 7 7.1 67,248 7.8 5,841 9.5 Montana 674,104 48,40 5 7.2 49,831 7.4 1,426 2.9 Oregon 2,105,8 40 162,2 28 7.7 164,176 7.8 1,948 1.2 Washington 4,246,9 16 308,8 51 7.3 333,169 7.8 24,31 8 7.9 TOTAL 60,133, 672 4,097 ,854 6.8 4,364,8 78 7.3 267,0 24 6.5