[Federal Register Volume 77, Number 100 (Wednesday, May 23, 2012)]
[Rules and Regulations]
[Pages 30410-30411]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-12548]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 36

[CC Docket No. 80-286; FCC 12-49]


Jurisdictional Separations and Referral to the Federal-State 
Joint Board

AGENCY: Federal Communications Commission.

ACTION: Interim rule.

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SUMMARY: Jurisdictional separations is the process by which incumbent 
local exchange carriers (incumbent LECs) apportion regulated costs 
between the intrastate and interstate jurisdictions. In this document, 
the Commission extends the current freeze of part 36 category 
relationships and jurisdictional cost allocation factors used in 
jurisdictional separations until June 30, 2014. Extending the freeze 
will allow the Commission to provide stability for carriers that must 
comply with the Commission's separations rules while the Federal-State 
Joint Board completes its analysis of, and recommendations for, interim 
and comprehensive reform of the jurisdictional separations process.

DATES: Effective June 22, 2012.

FOR FURTHER INFORMATION CONTACT: Daniel Ball, Attorney Advisor, at 202-
418-1577, Pricing Policy Division, Wireline Competition Bureau.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order (R&O) in CC Docket No. 80-286, FCC 12-49, released on May 8, 
2012. The full text of this document is available for public inspection 
during regular business hours in the FCC Reference Center, Room CY-
A257, 445 12th Street SW., Washington, DC 20554.
    1. Jurisdictional separations is the process by which incumbent 
LECs apportion regulated costs between the intrastate and interstate 
jurisdictions.
    2. The 2001 Separations Freeze Order, 66 FR 33202, June 21, 2001, 
froze all part 36 category relationships and allocation factors for 
price cap carriers and all allocation factors for rate-of-return 
carriers. Rate-of-return carriers had the option to freeze their 
category relationships at the outset of the freeze. The freeze was 
originally established July 1, 2001 for a period of five years, or 
until the Commission completed separations reform, whichever occurred 
first. The 2006 Separations Freeze Extension Order, 71 FR 29843, May 
24, 2006, extended the freeze for three years or until the Commission 
completed separations reform, whichever occurred first. The 2009 
Separations Freeze Extension Order, 74 FR 23955, May 22, 2009, extended 
the freeze until June 30, 2010. The 2010 Separations Freeze Extension 
Order, 75 FR 30301, June 1, 2010, extended the freeze until June 30, 
2011. The 2011 Separations Freeze Extension Order, 76 FR 30840, May 27, 
2011, extended the freeze until June 30, 2012.
    3. The NPRM proposed extending the current freeze of part 36 
category relationships and jurisdictional cost allocation factors used 
in jurisdictional separations, which freeze would otherwise expire on 
June 30, 2012, until June 30, 2014. The R&O adopts that proposal. The 
extension will allow the Commission to continue to work with the 
Federal-State Joint Board on Separations to achieve comprehensive 
separations reform. Pending comprehensive reform, the Commission 
concludes that the existing freeze should be extended on an interim 
basis to avoid the imposition of undue administrative burdens on 
incumbent LECs. The overwhelming majority of parties filing comments in 
response to the NPRM supported extension of the freeze.
    4. The extended freeze will be implemented as described in the 2001 
Separations Freeze Order. Specifically, price-cap carriers would use 
the same relationships between categories of investment and expenses 
within part 32 accounts and the same jurisdictional allocation factors 
that have been in place since the inception of the current freeze on 
July 1, 2001. Rate-of-return carriers would use the same frozen 
jurisdictional allocation factors, and would use the same frozen 
category relationships if they had opted previously to freeze those as 
well.
    5. As required by the Regulatory Flexibility Act, the Commission 
certifies that these regulatory amendments will not have a significant 
impact on small business entities.

Paperwork Reduction Act (PRA)

    6. The R&O does not propose any new or modified information 
collections subject to the Paperwork Reduction Act of 1995 (PRA), 
Public Law 104-13. In addition, therefore, it does not contain any new, 
modified, or proposed ``information collection burden for small 
business concerns with fewer than 25 employees,'' pursuant to the Small 
Business Paperwork Relief Act of 2002, Public Law 107-198, 44 U.S.C. 
3506(c)(4).
    7. The Commission will send a copy of the R&O in a report to be 
sent to Congress and the Government Accountability Office pursuant to 
the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).

Ordering Clauses

    8. Pursuant to sections 1, 4(i) and (j), 214(e), 254, and 410 of 
the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 
154(j), 214(e), 254, and 410, the R&O is

[[Page 30411]]

adopted. The report and order shall be effective June 22, 2012.
    9. The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, shall send a copy of the R&O, including 
the Final Regulatory Flexibility Certification, to the Chief Counsel 
for Advocacy of the Small Business Administration.

List of Subjects in 47 CFR Part 36

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone, and Uniform System of Accounts.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 36 as follows:

PART 36--JURISDICTIONAL SEPARATIONS PROCEDURES; STANDARD PROCEDURES 
FOR SEPARATING TELECOMMUNICATIONS PROPERTY COSTS, REVENUES, 
EXPENSES, TAXES AND RESERVES FOR TELECOMMUNICATIONS COMPANIES

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1. The authority citation for part 36 continues to read as follows:

    Authority:  47 U.S.C. 151, 154(i) and (j), 205, 221(c), 254, 
403, and 410.


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2. In 47 CFR part 36 remove the words ``June 30, 2012'' and add, in 
their place, the words ``June 30, 2014'' in the following sections:
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a. Section 36.3(a) through (e);
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b. Section 36.123(a)(5) and (a)(6);
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c. Section 36.124(c) and (d);
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d. Section 36.125(h) and (i);
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e. Section 36.126(b)(6), (c)(4), (e)(4), and (f)(2);
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f. Section 36.141(c);
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g. Section 36.142(c);
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h. Section 36.152(d);
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i. Section 36.154(g);
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j. Section 36.155(b);
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k. Section 36.156(c);
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l. Section 36.157(b);
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m. Section 36.191(d);
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n. Section 36.212(c);
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o. Section 36.214(a);
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p. Section 36.372;
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q. Section 36.374(b) and (d);
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r. Section 36.375(b)(4) and (b)(5);
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s. Section 36.377(a), (a)(1)(ix), (a)(2)(vii), (a)(3)(vii), 
(a)(4)(vii), (a)(5)(vii), and (a)(6)(vii);
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t. Section 36.378(b)(1);
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u. Section 36.379(b)(1) and (b)(2);
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v. Section 36.380(d) and (e);
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w. Section 36.381(c) and (d); and
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x. Section 36.382(a).

[FR Doc. 2012-12548 Filed 5-22-12; 8:45 am]
BILLING CODE 6712-01-P