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A. a.(1)(a) i) a)DocumentgPleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:d<d<BBYYdBBddBYBdYzzzzBBBBqodYYYYYYYYYYY8888dddddddnddddddd"5^2BoddȦ8BBdr2B28ddddddddddBBrrrdzNdzoȐB8BtdBdoYoYBdo8Bo8odooYNBodddYO,Oh2BBBBPBdodddddȐYYYYYN8N8N8N8oddddooooddoddddzodddYYYYYdddooPoNoNBNoddȐoNNF2ldBdddddd3"5^(1<7PC2XXP\  P6QXP.=7UC2XXU4  pQX?W!0(Xh0\  P6QhP@I(!X,(\  P6Q,P\5PC2X3f_XP*f9 xQXXl6RC2XRXR9 xyQX  0 *26 B1sQAn Bold ItalicF1F2F3F4F5F6F7F8F9 yO- X   .D X-{  #XP\  P6QXP#Federal Communications Commission`y(# FCC 9811 ă  yxdddy .v3 Before the  yOFederal Communications Commission   xx#XP\  P6QXP#  X-Washington, D.C. 20554 ă  XK-I#XP\  P6QXP#n the Matter of  X-TP Cincinnati Bell Telephone Company, @h)  X-Southwestern Bell Telephone Company, andTh)  X-U S WEST Communications, Inc.Th)  X- h)  X -TPPrescription of RevisedTh)pp  X -Depreciation RatesTh)  X| -#XP\  P6QXP#  Xe -~  MEMORANDUM OPINION AND ORDER TP  X -X` hp x (#%'0*,.8135@8:' x Order). In that Order, we established streamlined study procedures that carriers could use at their discretion, to file  x for the annual update of rates as long as they used the same plant life and salvage estimates established in their most recent depreciation prescription orders. S  X '  X 'U; III. DISCUSSION ă  Xy4 e v4.` ` Cincinnati Bell and U S WEST proposed revised depreciation rates based upon  Xb4 xnew studies of their plant and salvage factors. They generally propose increases in depreciation  xrates based on plans to replace analog central office equipment with digital equipment and  x&copperconductor cables with fiber optic cables. Southwestern Bell proposed revised depreciation  x_rates developed using the ranges specified by the Commission in its streamlined depreciation  X4 xproceeding.v yO$'ԍ Depreciation Simplification Proceedings, supra n. 4.v We reviewed all of the proposed rates and determined that they were computed in  X4 xaccordance with our rules and procedures.h yO''ԍ See 47 C.F.R.  32.2000(g)(2), 43.43; see also Depreciation Simplification Proceedings, supra n. 4. The Common Carrier Bureau issued a Public Notice",N(N(ZZC"  x<on July 11, 1997, requesting comment on the proposed life and salvage factors and depreciation  X4 xrates. yOb' x ԍ Comments Invited on Depreciation Rate Prescriptions Proposed for Incumbent Local Exchange Carriers,  Public  yO*'Notice, DA 971360, rel. July 11, 1997 (Public Notice). No comments or reply comments were received. We therefore adopt the proposed rates as specified in the Appendix.  X4 ă  X4 e 5.` ` All three carriers proposed that the revised rates become effective on January 1,  xR1997. Our rules allow rates to be made retroactive to the beginning of the year in which the  Xv4filing is made. v  yOG ' x ԍ See The Prescription of Revised Percentages of Depreciation pursuant to the Communications Act of 1934,  yO 'as amended for: Alascom, Inc., et. al, 6 FCC Rcd 750 (1991). We therefore adopt the proposed effective date.R vx yO 'ԍ See 47 C.F.R.  43.43(e).R  XH4 IV. ORDERING CLAUSES ă  X 4 e 6.` ` ACCORDINGLY IT IS ORDERED, pursuant to Sections 4(i), 201205 and 220(b)  xof the Communications Act of 1934, as amended, 47 U.S.C. Sections 154(i), 201205 and 220(b),  xthat the percentages of depreciation set forth in the Appendix to this Order ARE PRESCRIBED, effective January 1, 1997.  X 47.` ` IT IS FURTHER ORDERED, that this Order is effective upon release. ` `  hhCFEDERAL COMMUNICATIONS COMMISSION ` `  hhCMagalie Roman Salas ` `  hhCSecretary " ,N(N(ZZ"  X4 >$q  >$q  >$q  >$q  ` `  hhCqpp  * January 30, 1998 wSEPARATE STATEMENT OF  COMMISSIONER HAROLD FURCHTGOTTROTH \  V4 Re:XCincinnati Bell Telephone Company, Southwestern Bell Telephone Company, and U S  Vv4WEST Communications, Inc., Prescription of Revised Depreciation Rates.(# While I support today's order with changes in depreciation rates as requested by the above parties, I take the opportunity to express my concern about the Commission's continued micromanagement of accounting rules. The Commission's authority to prescribe depreciation rates is merely a vestige of outdated rateofreturn regulation. Prior to 1996, Congress directed the FCC to prescribe depreciation rates for carriers. The Telecommunications Act of 1996 amended Section 220(b) to afford the Commission the discretion to prescribe such rates but only where appropriate. In today's increasingly competitive environment, there should be no need for the Commission to continue to dictate, even through revised streamlined  X4procedures, depreciation rates or the factors that may be used to compute such rates.   At a minimum, in a system of pure price cap regulation, the depreciation rate requirements and  Xb4the accomp anying remnants of costofservice regulation such as the Commission's lowend  XK4adjustment procedures ĩ  would be unnecessary and should be eliminated  for the larger carriers. I commend the Common Carrier Bureau for targeting this rule for a thorough evaluation in the coming biennial review process. I urge, and specifically encourage parties  X4to request, that the Commission use this year's first biennial review to   eliminate its rules and regulations regarding depreciation expenses and other related relics of rateofreturn regulation.