Investor Presentaiton
FCC-Cable Formula
Section 224(d) Cable Formula for Determining Maximum Rate For Use of LEC Utility Poles
Using FCC ARMIS Accounts
Maximum Rate Space Occupied
per Pole
Where:
-
Space Occupied
Usable Space
Net Pole Investment
Total Number of Poles
Carrying
x 0.95x Charge
Rate
1 foot (presumed, but rebuttable)
Usable Space =13.5 feet (presumed, but rebuttable)
And:
Gross Pole
Net Pole =
Investment
Accumulate d
Depreciati on
Investment
(Account 2411) (Account 3100)(Poles)
Accumulate d Deferred
Income Taxes
(Account 4100+ 4340)(Poles)
Carrying
Charge Rate
=
Administrative + Maintenance + Depreciation + Taxes + Return
Administrative
Element
Total General and Administrative (Accounts 6710 & 6720)
Gross Plant Investment Accumulated Depreciation
(Account 2001)
(Account 3100)
Accumulated Deferred
Taxes (Plant) (Accounts 4100 +4340)
=
Maintenance Account 6411 - Rental Expense (Poles)
Element
Net Pole Investment
Depreciation, Gross Pole Investment (Account 2411)
Element
Net Pole Investment
Depreciation Rate
for Gross Pole Investment
Taxes
Element
Gross Plant Investment
(Account 2001)
Operating Taxes (Account 7200)
Accumulated Depreciation
(Account 3100)
Accumulated Deferred
Taxes (Plant) (Accounts 4100 + 4340)
Return
Element
Applicable Rate of Retum (default = 11.25%)
36
Davis Wright
Tremaine LLPView entire presentation