Section 712.5  Application

 

a)         This Part specifies the procedures that will be followed in order to apportion intrastate costs between regulated and nonregulated activities. This Part applies only to those activities categorized as nonregulated in Illinois; it does not apply to those tariffed activities that have been classified as "competitive" by the Illinois Commerce Commission (Commission). (See Section 13-209 of the Public Utilities Act (Act) [220 ILCS 5/13-209].)

 

b)         The provisions of this Part are applicable to local exchange carriers ("carriers") with operations in the State of Illinois having no more than 35,000 subscriber access lines in service, except that this Part shall apply to the services of an Electing Provider subject to Section 13-506.2(a)(1) of the Act and to competitive telecommunications rates and services only to the extent that the Commission requires that application, and provided that the telecommunications provider may use generally accepted accounting practices or the accounting systems it uses for financial reporting purposes.  These carriers have diverse accounting, time reporting, and other recordkeeping systems such that records and statistics are not obtainable by all such carriers.  Therefore, it is understood that not all cost pools listed in this Part must be populated.  If, however, a greater degree of cost causative cost assignment is achieved, greater disaggregation of cost pools than is specified in this Part is acceptable.

 

c)         If the Federal Communications Commission (FCC) requires a carrier to vary from the provisions of this Part, or if modification of this Part is required to conform to separations requirements or the mirroring of access charge determination, the carrier shall keep a listing at the carrier's headquarters and available to Commission Staff, upon request, identifying the specific variances.

 

(Source:  Amended at 38 Ill. Reg. 12022, effective May 29, 2014)

 

Section 712.10  Description of Nonregulated Activities

 

Each carrier is required to have on file at the carrier's headquarters and available to Commission Staff, upon request, a description of each nonregulated activity offered. Nonregulated activities include those that:

 

a)         Have never been subject to tariff regulation, except incidental activities, by either the Commission or the FCC; or

 

b)         Have been preemptively detariffed in both jurisdictions by the FCC (e.g., customer premises equipment, enhanced services, and installation and maintenance of inside wiring).

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.15  Incidental Activities

 

a)         This Part requires that cost allocation procedures reflect the existence of activities in each carrier that are accorded incidental accounting treatment and allowed to remain on the regulated books of the business.  Each carrier is required to have on file at the carrier's headquarters and available to Commission Staff upon request a description of each activity that is accorded this treatment.  "Incidental activities" include, but are not limited to, items such as land and building space rental, cable locating, and pole contact rental.  (See 83 Ill. Adm. Code 710.14 and 710.23.)

 

b)         Incidental activities are those that meet the following four  conditions.

 

1)         The activity is not a line of business;

 

2)         The activity is an outgrowth of regulated operations;

 

3)         There is little additional financial or business risk to the regulated operation in providing the activity, as determined by the effect on the capital investments and requirements; and

 

4)         The activity utilizes an insubstantial commitment of investment or resources of the carrier, as determined by the capital investments and the service obligations of the carrier.

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.20  Corporate Organization

 

All carriers offering exchange and exchange access telecommunications services in Illinois are required to have on file at the carrier's headquarters and available to Commission Staff upon request a description of the carrier's corporate affiliates (See Section 7-101 of the Act [220 ILCS 5/7-101].).  The file shall include a brief description of each affiliate, the conditions of ownership, and a chart of all affiliates.

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.25  Affiliate Transactions

 

a)         The cost allocation procedures included in this Part specify the methodology to apportion costs between regulated and nonregulated activities.  Each local exchange carrier shall have on file at the carrier's headquarters and available to Commission Staff, upon request, a description of the type of affiliate transactions that are either provided to regulated operations by nonregulated entities or to nonregulated entities by regulated operations. (See Section 7-101 of the Act.)

 

b)         The filing shall include the following details for each affiliate transaction:

 

1)         Type of transaction;

 

2)         Billing provisions for each service or product provided categorized in one of three methods:

 

A)        Market Rate:  Using a price given in current market conditions where this price is determined in an arms length transaction;

 

B)        Cost:  Using the cost apportionment principles and standards included in this Part; or

 

C)        Tariff:  Using an established rate or charge that has been filed with the Commission;

 

3)         Frequency of transactions.

 

c)         Transactions between carriers and their affiliates are to be recorded on the carrier's books at market price, if market price can be determined from a price list or tariff.  In the absence of a list or tariff price, assets transferred from the carrier to the nonregulated entity are to be recorded at the higher of the net book cost or fair market value, while assets transferred from the nonregulated entity to the company are to be recorded at the lower of net book cost or fair market value.  Services for which there exists no list or tariff price are to be valued using fully distributed cost.  (See 83 Ill. Adm. Code 710.27.)

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.100  Overview

 

The methodology presented in this Subpart is used to apportion costs to regulated and nonregulated activities in each local exchange carrier.  The accounts included in the process are those included in 83 Ill Adm. Code 710 ("Part 710").

 

Section 712.105  Cost Apportionment

 

The cost apportionment methodology is presented in Subpart E.  Subpart E is organized as follows:

 

a)         Heading of Sections:  Part 710 account number and description which is to be apportioned (see 83 Ill. Adm. Code 710).

 

b)         Cost Pools.  Cost pool(s) into which the account is apportioned.

 

c)         Cost Pool Apportionment Basis:  Method for apportioning the account into the specified cost pools (see Section 712.200).

 

d)         Regulated/Nonregulated Apportionment Basis:  Method for apportioning the defined cost pools into a regulated and nonregulated component (see Section 712.280).

 

e)         Cost Definition:  Characteristics of the costs apportioned to regulated and nonregulated services (see Section 712.110).

 

f)         Comments:  Additional narrative included as appropriate to explain the methodology.

 

Section 712.110  Cost and Allocation Definitions

 

a)         The costs which are apportioned to regulated and nonregulated activities through this Part are defined in four categories:

 

1)         Directly Assignable:  Expenses or investments which are incurred for the exclusive use of either regulated or nonregulated activities.

 

2)         Directly Attributable:  Expenses or investments which are incurred for both regulated and nonregulated activities but which can be distributed to each using direct measures of cost causation or usage.

 

3)         Indirectly Attributable:  Expenses or investments which are incurred for both regulated and nonregulated activities and which must be apportioned on the basis of indirect measures of cost causation.

 

4)         Unattributable:  Expenses or investments which are shared by both regulated and nonregulated activities and for which no direct or indirect measures of cost causation can be used to apportion costs.

 

b)         The following definitions are used in the description of cost allocation methodologies:

 

1)         Cost Pool:  A homogenous group of costs which have a unique cost determinant.

 

2)         Cost Pool Equals Account:  The entire account balance forms a single cost pool.

 

3)         General Allocator:  The ratio of all expenses directly assigned or attributed to regulated and nonregulated activities.

 

Section 712.115  Cost Pools

 

a)         Where the apportionment of costs to regulated and nonregulated activities cannot be determined through the nature of the Part 710 Account, cost pools are defined to permit this analysis.  Cost pools represent a homogenous group of costs that have a unique cost determinant.

 

b)         This Part specifies the minimum level of cost pool detail required to distinguish the costs of regulated and nonregulated services.  Each local exchange carrier may utilize additional detailed cost pools as appropriate in order to improve the regulated and nonregulated apportionment process. Where detailed cost pools not specified in this Part are used by a carrier, it must file with the Manager of Accounting of the Commission detailed information in the format outlined in Subpart E that identifies the basis of the cost pool apportionment and the subsequent regulated/nonregulated apportionment basis.  Any reasons and justification for the deviation shall be stated in the comments or attached.

 

c)         Where accounting systems and procedures of a local exchange carrier do not allow disaggregation of costs to particular pools specified by this Part, such cost pools need not be populated.

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.200  Cost Pool Apportionment Bases

 

Where a specific Part 710 Account must be subdivided to permit a causally-based apportionment, Subpart E specifies the basis by which the account is apportioned into multiple cost pools.  Sections 712.205 through 712.275 outline each of these bases and provide a cross-reference to the specific accounts in Subpart E where the method is employed.

 

Section 712.205  Cost Pool Account Transaction Analysis

 

a)         Several of the Part 710 Accounts include costs whose characteristics can only be defined through the direct analysis of the transactions and are classified into either a regulated, nonregulated, or shared cost pool.

 

b)         Account transaction analysis is used to apportion the following accounts into cost pools:

 

            Account 1438 Deferred Maintenance and Retirements

 

            Account 2690 Intangibles

 

            Account 6510 Other Property, Plant and Equipment Expenses

 

            Account 6530 Network Operations Expense

 

            Account 6610 Marketing

 

            Account 6620 Services

 

            Account 6720 General and Administrative

 

            Account 7100 Other Operating Income and Expenses

 

            Account 7200 Operating Taxes

 

            Account 7500 Interest and Related Items

 

            Account 7600 Extraordinary Items

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.210  Analysis of Leased Assets

 

a)         The capital leases and leasehold improvements of each local exchange carrier are classified into three cost pools:  Regulated, Nonregulated, and Other.  This analysis is completed through the use of existing company property and lease records.  The costs of any leases exclusively used for either regulated or nonregulated services are assigned directly to the appropriate cost pool.  All other leases are assigned to the Other Cost Pool by major asset category.

 

b)         The lease and leasehold analysis process is used to apportion Account 2680 Amortizable Tangible Assets.

 

Section 712.215  Analysis of Motor Vehicle Records

 

An annual analysis of motor vehicle records is to be made in order to apportion the investment in Account 2110 into two cost pools:

 

a)         Plant

 

b)         Customer and Corporate Operations

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.235  Analysis of Tax Records

 

The tax records of the local exchange carrier are analyzed to apportion Account 7200 Operating Taxes into the defined cost pools.  The cost pools are defined by major asset category in a manner that reflects how investment credits are generated.

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.245  Computer Application Activity Analysis

 

a)         An analysis of the company's computer application records is to be completed, not less frequently than annually, in order to apportion Account 2110 Land and Support Assets  into three cost pools:

 

1)         Regulated;

 

2)         Nonregulated; and

 

3)         Shared Functional Operations.

 

b)         In this analysis the costs of applications undertaken exclusively for either regulated or nonregulated services are assigned directly to the appropriate cost pool.  Costs of applications that are functional in nature and are shared by regulated and nonregulated services are assigned to the Shared cost pool.

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.250  Building/Floor Space Use Study

 

Local exchange carrier property records and building usage analyses contain information on the functions that use the productive space (space used for the provision of telecommunications services or the generation of revenue) in the company's building investment on either a detailed or summary location basis.  This usage data is used to apportion Account 2110 into three cost pools:

 

a)         Central Office;

 

b)         Plant Support; and

 

c)         Customer and Corporate Operations.

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.255  Direct Reporting

 

a)         The operational and accounting systems of the local exchange carrier support the direct identification of costs to cost pools through the use of functionally based reporting codes.  These codes are assigned to specific work activities and subsequently related to specific cost pools.  Employees may also report to these codes through time reporting procedures.

 

b)         The direct reporting of functionally based codes is used to identify selected cost pools in the following accounts:

 

            Account 1220 Inventories

 

            Account 2210 Central Office Switching

 

            Account 2220 Operator Systems

 

            Account 2230 Central Office Transmission

 

            Account 2310 Information Origination/Termination

 

            Account 2410 Cable and Wire Facilities

 

            Account 5300 Uncollectible Revenue

 

            Account 6310 Information Origination/Termination Expense

 

            Account 6540 Access Expense

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.260  Flight Logs

 

a)         Flight logs maintained of all aircraft usage by the local exchange carrier are used to classify the investment in Account 2110 into three cost pools:  Regulated, Nonregulated, and Shared.

 

b)         Flight logs are completed by the originator of the flight and the pilot.  They provide details of the purpose of the flight, the organization using the aircraft, and the determination of whether the purpose of the flight was exclusively for regulated or nonregulated purposes.  Where the aircraft usage cannot be clearly identified as either regulated or nonregulated, the residual investment and associated expenses are assigned to the Shared Cost Pool.

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.265  Property Record Analysis

 

a)         The property records of the company facilitate the disaggregation of the account so that direct assignment to regulated and nonregulated services can be maximized.  In many cases, investment which is dedicated to the regulated and nonregulated services can be identified through these records or through unique subaccounts.

 

b)         The details in a company's property records or subaccounts are used to apportion the following accounts into cost pools:

 

            Account 2210 Central Office Switching

 

            Account 2220 Operators Systems

 

            Account 2230 Central Office – Transmission

 

            Account 2310 Information Origination/Termination

 

            Account 2410 Cable and Wire Facilities

 

Section 712.270  Relative Value – Cost Pool Apportionment

 

a)         The reference to relative value as the basis for the cost pool apportionment indicates that a proportional relationship of an investment category to a larger pool of investment is used to determine the cost pool balance.

 

b)         The relative value of the related buildings investments is used to apportion Account 2110 Land and Support Assets into three cost pools.

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.280  Regulated/Nonregulated Apportionment Bases

 

Cost pools are defined to be homogenous groups of costs which share a causal relationship.  Many cost pools can be directly assigned to either regulated or nonregulated activities.  Where a cost pool cannot be directly assigned to either regulated or nonregulated service, a further apportionment is required.  Sections 712.285 through 712.375 outline each of these bases and provide a cross-reference to the specific accounts in Subpart E where the method is employed.

 

Section 712.285  Account Transaction Analysis – Regulated/Nonregulated

 

a)         Several of the cost pools consist of costs whose regulated and nonregulated characteristics can only be defined through the direct analysis of transactions during the period.  Direct analysis of an account requires an examination and review of the transactions made into the account to determine the proper categorization of the expenditures as to the regulated, nonregulated, or shared cost pools.

 

b)         Account transaction analysis is used to apportion selected cost pools to regulated and nonregulated activities in the following accounts.

 

            Account 1438 Deferred Maintenance and Retirements

 

            Account 2002 Property Held for Future Telecommunications Use

 

            Account 2003 Telecommunications Plant Under Construction

 

            Account 2005 Telecommunications Plant Adjustment

 

            Account 2006 Nonoperating Plant

 

            Account 2007 Goodwill

 

            Account 4100 Net Current Deferred Operating Income Taxes

 

            Account 4340 Net Noncurrent Deferred Operating Income Taxes

 

            Account 5300 Uncollectible Revenue

 

            Account 6790 Provision for Uncollectible Notes Provision

 

            Account 7100 Other Operating Income and Expense

 

            Account 7200 Operating Taxes

 

            Account 7300 Nonoperating Income and Expense

 

            Account 7400 Nonoperating Taxes

 

            Account 7600 Extraordinary Items

 

c)         Uncollectible revenues.  Account 5300 Uncollectible Revenues, associated with furnishing regulated services, will be directly assigned to regulated activities.  Uncollectible revenues associated with nonregulated activities will be directly assigned to nonregulated activities and specifically identified in a nonregulated subsidiary record category.

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.290  Billing and Collection Study

 

A study, completed at least annually, is required to apportion customer billing and collection costs to regulated and nonregulated activities. This study is used to apportion selected cost pools in Account 6620 Services.  This study shall distinguish the nonregulated proportion of the key determinants of customer billing and collection:  messages or billing units and lines of billing.

 

Section 712.305  Customer and Corporate Operations Wages and Salaries

 

a)         Customer and corporate operations wages and salaries are used as the indirect basis for apportioning selected cost pools between regulated and nonregulated activities where these wages and salaries are the primary determinant of cost behavior.

 

b)         Customer and corporate operations wages and salaries are used to apportion selected cost pools in the following account:

 

            Account 2110 Land and Support Assets

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.315  General Allocator

 

a)         This Part prescribes the use of a general allocator to apportion those costs pools for which no direct or indirect measures of cost causation are available.

 

b)         Selected cost pools in the following accounts are apportioned using the general allocator:

 

            Account 1438 Deferred Maintenance and Retirements

 

            Account 2110 Land and Support Assets

 

            Account 2690 Intangibles

 

            Account 6510 Other Property, Plant and Equipment Expenses

 

            Account 6720 General and Administration

 

            Account 7300 Nonoperating Income and Expense

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.320  Marketing Allocator

 

a)         The marketing allocator is used to apportion those cost pools of marketing expenses for which measures of cost behavior cannot be identified.  The marketing allocator is equal to the ratio of direct assignments and attributions of marketing costs.

 

b)         The marketing allocator is used to apportion marketing expenses in selected cost pools in Account 6610 Marketing.

 

Section 712.335  Projected Regulated/Nonregulated Shared Usage

 

a)         The costs of network investment which is shared by both regulated and nonregulated services are normally recovered on the basis of tariff rates. Any shared investment which is not utilized at tariff rates is apportioned on the basis of peak projected nonregulated usage.

 

b)         The forecasting process is completed annually for each cost pool and uses a three year forecasting period.  During each forecast, the highest level of forecast nonregulated usage is determined and used to apportion the costs of investment.  When the tracking process identifies a variance between forecast and actual usage, a reconciliation shall be required.  If actual nonregulated usage has been greater than the cumulative forecast, additional investment is to be transferred from the regulated activities.

 

c)         The forecasting of usage is the basis for the apportionment of the Shared Cost Pools in the following accounts.

 

            Account 2210 Central Office Switching

 

            Account 2220 Operator Systems

 

            Account 2230 Central Office Transmission

 

            Account 2410 Cable and Wire Facilities

 

Section 712.345  Relative Investment Value – Regulated/Nonregulated

 

a)         The reference to relative investment value as the basis for the regulated and nonregulated apportionment indicates that the proportional relationship of the regulated and nonregulated investment in a specific investment category (e.g., Central Office) is used to determine the regulated and nonregulated balances in the cost pool apportioned.

 

b)         Relative investment value is used to apportion selected cost pools to regulated and nonregulated activities.  The specific measures used for each account apportionment are outlined in Subpart E:

 

            Account 1220 Inventories

 

            Account 2110 Land and Support Assets

 

            Account 3100 Accumulated Depreciation

 

            Account 3200 Accumulated Depreciation – Held for Future Telecommunications Use

 

            Account 3300 Accumulated Depreciation – Nonoperating

 

Account 3410 Accumulated Amortization – Capitalized Leases

 

            Account 6110 Network Support Expenses

 

            Account 6120 General Support Expenses

 

            Account 6210 Central Office Switching Expense

 

            Account 6220 Operations System Expense

 

            Account 6230 Central Office Transmission Expenses

 

            Account 6310 Information Origination/Termination Expenses

 

            Account 6410 Cable and Wire Facilities Expenses

 

            Account 6510 Other Property, Plant and Equipment Expenses

 

            Account 6530 Network Operations Expense

 

            Account 6560 Depreciation and Amortization Expenses

 

            Account 7200 Operating Taxes

 

            Account 7500 Interest and Related Items

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.350  Relative Regulated/Nonregulated Pre-Tax Book Income

 

Certain of the tax accounts of each company reflect taxes that are calculated on the basis of pre-tax book income.  This measure, therefore, is used to apportion the cost pools to regulated and nonregulated activities.  The account in which selected costs pools use this basis is:

 

Account 7200 Operating Taxes

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.355  Relative Regulated/Nonregulated Revenues

 

One cost pool specified in this Part reflects the gross receipt taxes paid by each company.  The appropriate apportionment measure for the Gross Receipts cost pool in Account 7200 Operating Taxes is relative to the nature of the revenue on which the tax or fee is applied.

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.360  Time Reporting

 

Certain cost pools in Account 6610 Marketing are apportioned to regulated and nonregulated based on reported time.  If the time required to perform the function is generally less than the carrier's time reporting increment, a survey method may be used to provide the apportionment.

 

Section 712.365  Service Order Activity Analysis

 

An analysis of work activities by job classification or functional area and/or studies of work output must be made by the carrier to determine the apportionment to regulated and nonregulated expenses of the certain cost pool in the following accounts:

 

            Account 6610 Marketing

 

            Account 6620 Services

 

Section 712.370  Analysis of Advertising Expense

 

An analysis of advertising expense shall be conducted to identify the product or service promoted.  This analysis is used to determine the apportionment of the product advertising cost pool in Account 6610 Marketing between regulated and nonregulated expenses.

 

Section 712.375  Total Company Wages and Salaries

 

a)         Total regulated and nonregulated wages and salaries for each local exchange carrier are used as the indirect basis for apportioning selected cost pools where total wages and salaries are the primary determinant of cost behavior.

 

b)         Total wages and salaries are used to apportion selected cost pools in the following accounts:

 

            Account 1438 Deferred Maintenance and Retirements

 

            Account 2110 Land and Support Assets

 

            Account 7200 Operating Taxes

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.1220  Account 1220 Inventories

 

a)         Regulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

b)         Nonregulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

c)         Other cost pool

 

1)         Cost Pool Apportionment Basis:  Residual of account

 

2)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Telecommunications plant investment

 

3)         Cost Definition:  Indirectly attributable

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.1438  Account 1438 Deferred Maintenance and Retirements

 

a)         Contemplated construction and projects cost pool

 

1)         Cost Pool Apportionment Basis: Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis: Directly assignable based on transaction analysis

 

3)         Cost Definition: Directly assignable

 

b)         Compensated absences cost pool

 

1)         Cost Pool Apportionment Basis: Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis: Total company wages and salaries

 

3)         Cost Definition: Indirectly attributable

 

c)         Equal access cost pool

 

1)         Cost Pool Apportionment Basis: Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis: Directly assigned to Regulated

 

3)         Cost Definition: Directly assignable

 

d)         Other cost pool

 

1)         Cost Pool Apportionment Basis: Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis: General Allocator

 

3)         Cost Definition: Unattributable

 

(Source:  Added at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.1439  Account 1439 Deferred Charges (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2002  Account 2002 Property Held for Future Telecommunications Use

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Account transaction analysis

 

d)         Cost Definition:  Directly assignable

 

e)         Comments:  Assigned in accordance with planned use of assets.

 

Section 712.2003  Account 2003 Telecommunications Plant Under Construction

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Account transaction analysis

 

d)         Cost Definition:  Directly assignable

 

e)         Comments:  An analysis of construction activity will be performed and apportionment will be in accordance with planned use of assets.

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2004  Account 2004 Telecommunications Plant Under Construction – Long Term (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2005  Account 2005 Telecommunications Plant Adjustment

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Account transaction analysis

 

d)         Cost Definition:  Directly assignable

 

e)         Comments:  Assigned based on analysis of underlying transactions.

 

Section 712.2006  Account 2006 Nonoperating Plant

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost Pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Account transaction analysis

 

d)         Cost Definition:  Directly assignable

 

e)         Comments:  Assigned based on analysis of underlying transactions.

 

Section 712.2007  Account 2007 Goodwill

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Account transaction analysis

 

d)         Cost Definition:  Directly assignable

 

e)         Comments:  Assigned based on analysis of underlying transactions.

 

Section 712.2110  Account 2110 Land and Support Assets

 

a)         Central Office cost pool

 

1)         Cost Pool Apportionment Basis:  Relative value:  Buildings to total buildings investment.

 

2)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Central office investment

 

3)         Cost Definition:  Indirectly attributable

 

b)         Plant Support cost pool

 

1)         Cost Pool Apportionment Basis:  Relative value:  Support Investment

 

2)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Plant Support Investment

 

3)         Cost Definition:  Indirectly attributable

 

4)         Comments:  Plant Support Investment consists of Account 2310 Information Origination/Termination and Account 2410 Cable and Wire Facilities

 

c)         Customer and Corporate Operations cost pool

 

1)         Cost Pool Apportionment Basis:  Customer and Corporate Operations Buildings to total building investment

 

2)         Regulated/Nonregulated Apportionment Basis:  Customer and Corporate Operations wages and salaries

 

3)         Cost Definition:  Indirectly assignable

 

Section 712.2111  Account 2111 Land (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2112  Account 2112 Motor Vehicles (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2113  Account 2113 Aircraft (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2114  Account 2114 Special Purpose Vehicles (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2115  Account 2115 Garage Work Equipment (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2116  Account 2116 Other Work Equipment (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2121  Account 2121 Buildings (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2122  Account 2122 Furniture (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2123  Account 2123 Office Equipment (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2124  Account 2124 General Purpose Computers (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2210  Account 2210 Central Office – Switching

 

a)         Regulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting/property record analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

b)         Nonregulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting/property record analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

c)         Shared cost pool

 

1)         Cost Pool Apportionment Basis:  Residual of Account

 

2)         Regulated/Nonregulated Apportion Basis:  Projected Regulated/Nonregulated shared usage

 

3)         Cost Definition:  Directly attributable

 

Section 712.2220  Account 2220 Operator Systems

 

a)         Regulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting/property record analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

b)         Nonregulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting/property record analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

c)         Shared cost pool

 

1)         Cost Pool Apportionment Basis:  Residual of Account

 

2)         Regulated/Nonregulated Apportionment Basis:  Projected Regulated/Nonregulated shared usage

 

3)         Cost Definition:  Directly attributable

 

Section 712.2230  Account 2230 Central Office Transmission

 

a)         Regulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting/property record analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

b)         Nonregulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting/property record analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

c)         Shared cost pool

 

1)         Cost Pool Apportionment Basis:  Residual of Account

 

2)         Regulated/Nonregulated Apportionment Basis:  Projected Regulated/Nonregulated shared usage

 

3)         Cost Definition:  Directly attributable

 

Section 712.2310  Account 2310 Information Origination/Termination

 

a)         Regulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting/property record analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

4)         Comments:  For companies having significant investment in nonregulated customer premises facilities, the Class A accounts below are recommended.

 

b)         Nonregulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting/property record analysis

 

2)         Regulated/Nonregulate Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

c)         Shared cost pool

 

1)         Cost Pool Apportionment Basis:  Residual of Account

 

2)         Regulated/Nonregulated Apportionment Basis:  Projected Regulated/Nonregulated shared usage

 

3)         Cost Definition:  Directly attributable

 

Section 712.2311  Account 2311 Station Apparatus (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2321  Account 2321 Customer Premises Wiring (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.2341  Account 2341 Large Private Branch Exchange

 

a)         Nonregulated cost pool

 

b)         Cost Pool Apportionment Basis:  Direct reporting

 

c)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

d)         Cost Definition:  Directly assignable

 

e)         Comments:  For companies having significant investment in nonregulated customer premises facilities, the Class A accounts below are recommended.

 

Section 712.2410  Account 2410 Cable and Wire Facilities

 

a)         Regulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting/property record analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

b)         Nonregulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting/property record analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

c)         Shared cost pool

 

1)         Cost Pool Apportionment Basis:  Residual of Account

 

2)         Regulated/Nonregulated Apportionment Basis:  Projected Regulated/Nonregulated shared usage

 

3)         Cost Definition:  Directly attributable

 

Section 712.2680  Account 2680 Amortizable Tangible Assets

 

a)         Regulated cost pool

 

1)         Cost Pool Apportionment Basis:  Lease analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

b)         Nonregulated cost pool

 

1)         Cost Pool Apportionment Basis:  Lease analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

c)         Other cost pool

 

1)         Cost Pool Apportionment Basis:  Lease analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Methodology by major asset class

 

3)         Cost Definition:  Indirectly attributable

 

4)         Comments:  Analysis will be performed to determine major asset classification of property.  Apportionment will be based on methodology for the asset classification.

 

Section 712.2690  Account 2690 Intangibles

 

a)         Regulated cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

b)         Nonregulated cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

c)         General cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  General Allocator

 

3)         Cost Definition:  Unattributable

 

Section 712.3100  Account 3100 Accumulated Depreciation

 

a)         Cost Pool:  Cost pool equals Subaccount by major asset category

 

b)         Cost Pool Apportionment Basis:  Same as Subaccount

 

c)         Regulated/Nonregulated Apportionment Basis:  Relative investment value of major asset category

 

d)         Cost Definition:  Indirectly attributable

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.3200  Account 3200 Accumulated Depreciation – Held for Future Telecommunications Use

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Property held for future telecommunications use

 

d)         Cost Definition:  Indirectly attributable

 

Section 712.3300  Account 3300 Accumulated Depreciation − Nonoperating

 

            a)         Cost Pool: Same as Account

 

            b)         Cost Pool Apportionment Basis: Cost pool equals Account

 

            c)         Regulated/Nonregulated Apportionment Basis: Relative investment value of Nonoperating Plant

 

            d)         Cost Definition: Indirectly attributable

 

(Source:  Added at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.3400  Account 3400 Accumulated Amortization - Tangible (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.3410  Account 3410 Accumulated Amortization – Capitalized Leases

 

a)         Regulated cost pool

 

1)         Cost Pool Apportionment Basis: Lease analysis

 

2)         Regulated/Nonregulated Apportionment Basis: Directly assigned to Regulated

 

3)         Cost Definition: Directly assignable

 

b)         Nonregulated cost pool

 

1)         Cost Pool Apportionment Basis: Lease analysis

 

2)         Regulated/Nonregulated Apportionment Basis: Directly assigned to Nonregulated

 

3)         Cost Definition: Directly assignable

 

c)         Other cost pool

 

1)         Cost Pool Apportionment Basis: Lease analysis

 

2)         Regulated/Nonregulated Apportionment Basis: Methodology by major asset class

 

3)         Cost Definition: Indirectly attributable

 

4)         Comments: Analysis will be performed to determine major asset classification of property. Apportionment will be based on method­ology for the asset classification.

 

(Source:  Added at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.3500  Account 3500 Accumulated Amortization – Intangibles (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.3600  Account 3600 Accumulated Amortization – Other (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.4100  Account 4100 Net Current Deferred Operating Income Tax

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Account transaction analysis

 

d)         Cost Definition:  Directly attributable

 

e)         Comments:  Costs are apportioned to regulated and nonregulated cost objectives on the basis of the timing differences which gave rise to the deferral.

 

Section 712.4340  Account 4340 Net Noncurrent Deferred Operating Income Tax

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Account transaction analysis

 

d)         Cost Definition:  Indirectly attributable

 

e)         Comments:  Costs are apportioned to regulated and nonregulated cost objectives on the basis of the timing differences which gave rise to the deferral.

 

Section 712.5300  Account 5300 Uncollectible Revenue

 

a)         Regulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly attributable

 

b)         Nonregulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

c)         Shared cost pool

 

1)         Cost Pool Apportionment Basis:  Directly reporting

 

2)         Regulated/Nonregulated Apportionment Basis:  Account transaction analysis

 

3)         Cost Definition:  Directly attributable

 

Section 712.6110  Account 6110 Network Support Expenses

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost Pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Plant support investment

 

d)         Cost Definition:  Indirectly attributable

 

Section 712.6120  Account 6120 General Support Expenses

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Land and support assets

 

d)         Cost Definition:  Indirectly attributable

 

(Source:  Amended at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.6210  Account 6210 Central Office Switching Expense

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Central office investment

 

d)         Cost Definition:  Indirectly attributable

 

Section 712.6220  Account 6220 Operators System Expense

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Operator systems investment

 

d)         Cost Definition:  Indirectly attributable

 

Section 712.6230  Account 6230 Central Office Transmission Expenses

 

a)         Cost pool

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Central Office transmission investment

 

d)         Cost Definition:  Indirectly assignable

 

Section 712.6310  Account 6310 Information Origination/Termination Expenses

 

a)         Customer premises equipment cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

b)         Customer premises wiring cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

c)         Other cost pool

 

1)         Cost Pool Apportionment Basis:  Residual of Account

 

2)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Residual information origination/termination investment

 

3)         Cost Definition:  Indirectly attributable

 

Section 712.6410  Account 6410 Cable and Wire Facilities Expenses

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Cable and wire facilities investment

 

d)         Cost Definition:  Directly assignable

 

Section 712.6510  Account 6510 Other Property, Plant and Equipment Expenses

 

a)         Property held for future telecommunications use expense cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Property held for future telecommunications use

 

3)         Cost Definition:  Indirectly attributable

 

b)         General cost pool

 

1)         Cost Pool Apportionment Basis:  Residual of Account

 

2)         Regulated/Nonregulated Apportionment Basis:  General Allocator

 

3)         Cost Definition:  Unattributable

 

Section 712.6530  Account 6530 Network Operations Expenses

 

a)         Power expense cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Central office investment

 

3)         Cost Definition:  Indirectly attributable

 

b)         Testing cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Central office investment

 

3)         Cost Definition:  Directly attributable

 

c)         General cost pool

 

1)         Cost Pool Apportionment Basis:  Residual of Account

 

2)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Central office and outside plant investment

 

3)         Cost Definition:  Indirectly attributable

 

Section 712.6540  Account 6540 Access Expense

 

a)         Regulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

b)         Nonregulated cost pool

 

1)         Cost Pool Apportionment Basis:  Direct reporting

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

Section 712.6560  Account 6560 Depreciation and Amortization Expenses

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost Pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Property, plant and equipment investment

 

d)         Cost Definition:  Indirectly attributable

 

Section 712.6610  Account 6610 Marketing

 

a)         Regulated Product Management cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Time reporting/survey

 

3)         Cost Definition:  Directly assignable

 

b)         Regulated sales cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Time reporting/survey

 

3)         Cost Definition:  Directly assignable

 

c)         Regulated product advertising cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Analysis of advertising expense

 

3)         Cost Definition:  Directly assignable

 

d)         Nonregulated product management cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Time reporting/survey

 

3)         Cost Definition:  Directly assignable

 

e)         Nonregulated sales cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Time reporting/survey

 

3)         Cost Definition:  Directly assignable

 

f)         Nonregulated product advertising cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Analysis of advertising expense

 

3)         Cost Definition:  Directly assignable

 

g)         Shared cost pool

 

1)         Cost Pool Apportionment Basis:  Residual expenses

 

2)         Regulated/Nonregulated Apportionment Basis:  Marketing allocator

 

3)         Cost Definition:  Indirectly attributable

 

Section 712.6620  Account 6620 Services

 

a)         Call completion services cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

b)         Number service cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

c)         Customer services cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Survey

 

3)         Cost Definition:  Directly attributable

 

Section 712.6710  Account 6710 Executive and Planning (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.6720  Account 6720 General and Administrative

 

a)         Regulated cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

4)         Comments:  Apportioned among three cost pools based on analysis of transaction to account which may include functional analysis of certain types of charges.  If detailed information is not available, entire account can be in general cost pool.

 

b)         Nonregulated cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Nonregulated

 

3)         Cost Definition:  Directly assignable

 

4)         Comments:  Apportioned among three cost pools based on analysis of transaction to account which may include functional analysis of certain types of charges.  If detailed information is not available, entire account can be in general cost pool.

 

c)         General cost pool

 

1)         Cost Pool Apportionment Basis:  Residual of Account

 

2)         Regulated/Nonregulated Apportionment Basis:  General allocator

 

3)         Cost Definition:  Unattributable

 

4)         Comments:  Apportioned among three cost pools based on analysis of transaction to account which may include functional analysis of certain types of charges.  If detailed information is not available, entire account can be in general cost pool.

 

Section 712.6790  Account 6790 Provision for Uncollectible Notes Receivable

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Account transaction analysis

 

d)         Cost Definition:  Directly assignable

 

e)         Comments:  Analysis of Account is needed to determine the uncollectible and the purpose to which each amount relates.

 

Section 712.7100  Account 7100 Other Operating Income and Expenses

 

a)         Custom work cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Directly assigned to Regulated

 

3)         Cost Definition:  Directly assignable

 

b)         Other operating gains or losses cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Account transaction analysis

 

3)         Cost Definition:  See subsection (b)(4)

 

4)         Comments:  An analysis is performed to determine from which type of asset the gains or losses were realized.  Each transaction will then be apportioned using the same methodology used for the respective asset.

 

Section 712.7200  Account 7200 Operating Taxes

 

a)         Cost Pool: Same as Account

 

b)         Cost Pool Apportionment Basis: Account transaction analysis

 

c)         Regulated/Nonregulated Apportionment Basis: Account transaction analysis

 

d)         Cost Definition: Indirectly attributable

 

e)         Comments: An analysis of tax records is performed to determine which apportionment methodology is appropriate.

 

(Source:  Added at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.7210  Account 7210 Operating Investment Tax Credits – Net (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.7220  Account 7220 Operating Federal Income Taxes (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.7230  Account 7230 Operating State and Local Income Taxes (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.7240  Account 7240 Operating Other Taxes (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.7250  Account 7250 Provision for Deferred Operating Income Taxes – Net (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.7300  Account 7300 Nonoperating Income and Expenses

 

a)         Cost Pool: Same as Account

 

b)         Cost Pool Apportionment Basis: Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis: Account transaction analysis

 

d)         Cost Definition: See subsection (e).

 

e)         Comments: An analysis is performed to determine from which major types of property gains or losses were realized. Each transaction is then apportioned using the same methodology used for that type of property.

 

(Source:  Added at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.7350  Account 7350 Gains or Losses from the Disposition of Certain Property (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.7370  Account 7370 Special Charges (Repealed)

 

(Source:  Repealed at 27 Ill. Reg. 12489, effective August 1, 2003)

 

Section 712.7400  Account 7400 Nonoperating Taxes

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Cost pool equals Account

 

c)         Regulated/Nonregulated Apportionment Basis:  Account transaction analysis

 

d)         Cost Definition:  See subsection (e)

 

e)         Comments:  An analysis of this Account is performed to determine if nonoperating taxes have been generated by transactions from Accounts 7350 and 7370.  Apportionment is then made on the same basis as the causative transactions.

 

Section 712.7500  Account 7500 Interest and Related Items

 

a)         Interest on funded debt cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Telecommunications plant investment

 

3)         Cost Definition:  Indirectly attributable

 

b)         Capital leases cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Capital lease

 

3)         Cost Definition:  Indirectly attributable

 

c)         Debt issuance cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Telecommunications plant investment

 

3)         Cost Definition:  Indirectly attributable

 

d)         Other cost pool

 

1)         Cost Pool Apportionment Basis:  Account transaction analysis

 

2)         Regulated/Nonregulated Apportionment Basis:  Relative value:  Telecommunications plant investment

 

3)         Cost Definition:  Indirectly attributable

 

Section 712.7600  Account 7600 Extraordinary Items

 

a)         Cost Pool:  Same as Account

 

b)         Cost Pool Apportionment Basis:  Account transaction analysis

 

c)         Regulated/Nonregulated Apportionment Basis:  Account transaction analysis

 

d)         Cost Definition:  See subsection (e)

 

e)         Comments:  An analysis of this Account is performed to determine the origin of the item.  Each transaction is then apportioned using the appropriate methodology.