********************************************************    
                         NOTICE
********************************************************

This document was converted from
WordPerfect or Word to ASCII Text format.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
WordPerfect version or Adobe Acrobat version, if available.

*****************************************************************
Before the
               FEDERAL COMMUNICATIONS COMMISSION
                     Washington, D.C. 20554

In the Matter of:                   )
                                     )
Mid-Sized Incumbent Local Exchange Carriers      )
                                     )
Filing of Cost Allocation Manuals for the        )
Separation of Costs Between Regulated       )               ASD 99-53
and Nonregulated Activities         )
                                     )
                                     
                                     
                                   ORDER 

Adopted: December 10, 1999              Released: December 10, 1999

By the Chief, Accounting Safeguards Division:
  1. In this Order, we grant a waiver extending the due date for filing cost allocation manuals
  (CAMs) to March 15, 2000, for mid-sized incumbent local exchange carriers (ILECs) planning to file
  their CAMs at the Class B account level for the 1999 reporting year. This will allow these carriers
  additional time to prepare and file their CAMs in accordance with the Class B accounts. 

  2. Part 64 of the Commission's rules sets forth the procedures for allocating costs between regulated
  and nonregulated activities.  In accordance with these rules, certain carriers are required to file CAMs
  describing their procedures.  In the past, all carriers filing CAMs did so at the Class A account level.  In
  the Accounting Reductions Report and Order, released on June 30, 1999, however, the Commission
  amended its rules to allow mid-sized ILECs to use the less extensive Class B account level. Further, in
  a public notice issued on September 10, 1999, the Commission clarified that mid-sized ILECs may
  implement the new accounting and reporting requirements effective for the 1999 reporting year. 
         3. Section 64.903(b) of the Commission's rules requires ILECs to update their CAMs 
annually.  These annual CAM updates are due by the last working day of each calendar year.  Because CAM
conversion to the Class B level necessitates changes to cost pools and allocators, mid-sized ILECs planning
to adopt these new rules for the 1999 reporting year may need additional time and guidance from the
Commission to ensure that their revised CAMs comply fully with Part 64.
 
       4. The Commission, on its own motion or on petition, may waive any provision of its rules 
or orders if good cause is shown.  Waiver of the Commission's rules is appropriate only if special circumstances
warrant a deviation from the general rule and such deviation will serve the public interest.  In addition, the waiver
must be consistent with the principles underlying the rule for which a waiver is requested.  

       5. After discussions with mid-sized ILECs planning to file revised CAMs at the Class
       B account level for the 1999 reporting year, we conclude that additional time is needed to ensure
       that mid-sized ILECs' CAMs continue to comply with our rules.  An area of particular concern
       is CAM uniformity. Mid-sized ILECs opting to file their CAMs at the Class B account level must
       continue to comply with the Commission's requirement for uniform cost pools and allocators as
       specified in the Commission's CAM Uniformity Order.  Thus far, however, we have only
       provided guidance on CAM uniformity compliance at the Class A level.  We believe it may be
       useful for us to provide such guidance at the Class B level before the mid-sized carriers file their
       CAMs.  Thus, we believe that the CAM filing date should be extended until March 15, 2000. 
       This will allow the Commission sufficient time to work with mid-sized ILECs in developing Class
       B level CAMs that comply with our rules and policies.  The March CAM filing date will not affect
       other related reporting requirements, and thus will cause no harm to the public interest.  We, therefore,
       waive the year-end 1999 CAM filing date until March 15, 2000, for mid-sized ILECs planning to file
       CAMs at the Class B level for the 1999  reporting year.  

       6. Accordingly, IT IS ORDERED, pursuant to Sections 4(i) and 5(c) of the
       Communications Act of 1934, as amended, 47 U.S.C.  154(i) and 155(c) and Sections 0.91, 0.291
       and 1.3 of the Commission's Rules, 47 C.F.R.  0.91, 0.291 and 1.3, that the filing date for year-end
       cost allocation manual revisions in Section 64.903(b) is waived until March 15, 2000, for mid-sized
       ILECs planning to file their cost allocation manuals at the Class B account level effective for the 1999
       reporting year. 


                         FEDERAL COMMUNICATIONS COMMISSION



                         Kenneth P. Moran
                         Chief, Accounting Safeguards Division