Before the FEDERAL COMMUNICATIONS COMMISSION FCC 96-22 Washington, D.C. 20554 In the Matter of ) ) The Prescription of Revised Percentages of ) Depreciation pursuant to the Communications ) Act of 1934, as amended for: ) ) Alascom, Inc. ) Ameritech-Illinois ) Ameritech-Indiana ) Ameritech-Michigan ) Ameritech-Ohio ) Ameritech-Wisconsin ) Bell Atlantic-Delaware, Inc. ) Bell Atlantic-District of Columbia, Inc. ) Bell Atlantic-Maryland, Inc. ) Bell Atlantic-Pennsylvania, Inc. ) Bell Atlantic-West Virginia, Inc. ) BellSouth Telecommunications, Inc. ) GTE Florida, Inc. ) GTE Hawaii, Inc. ) Nevada Bell ) NYNEX-New York ) Southwestern Bell Telephone Company ) United Telephone - Southeast, Inc. ) U S WEST Communications, Inc. ) MEMORANDUM OPINION AND ORDER Adopted: January 25, 1996 Released: January 26, 1996 By the Commission: Comnissioner Chong issuing « statement. 12312 I. INTRODUCTION 1. In this Memorandum Opinion and Order, we prescribe depreciation rates for eighteen local exchange carriers ("LECs") and Alascom. 1 We determined these depreciation rates based on our analysis of the depreciation studies filed by the carriers' and consultations with various state commission staffs. II. BACKGROUND " 2. Under Section 220(b) of the Communications Act of 1934, the Commission is required to prescribe the depreciation rates that are used to compute depreciation expense for communications common carriers. In accordance with our rules, depreciation rates are prescribed to depreciate fully the carriers' investments on a straight-line basis over the life of the associated plant.2 In order to accomplish this, we use the following formula: depreciation rate = 100% - accumulated depreciation % - future net salvage % average remaining life Both the average remaining life and future net salvage factors are based upon estimates,3 which require periodic review to ensure their reasonableness. 3. In prescribing depreciation rates, we review two types of studies: full studies and annual update studies. Full studies are reviewed every three years.4 Carriers' full studies are 1 Ameritech-Illinois; Ameritech-Indiana; Ameritech-Michigan; Ameritech-Ohio; Ameritech- Wisconsin; Bell Atlantic-Delaware, Inc.; Bell Atlantic-District of Columbia, Inc.; Bell Atlantic- Maryland, Inc.; Bell Atlantic-Pennsylvania, Inc.; Bell Atlantic-West Virginia, Inc.; BellSouth Telecommunications, Inc.; GTE- Florida, Inc.; GTE-Hawaii, Inc.; Nevada Bell; NYNEX-New York; Southwestern Bell Telephone Company; United Telephone-Southeast, Inc.; U S WEST Communications, Inc. 2 See 47 C.F.R. § 32.2000(g)(2). 3 As the formula above indicates, the depreciation rate for an account is a function of the associated plant's average remaining life, future net salvage estimates and the actual accumulated depreciation ratio. The average remaining life is the estimated average of the future life expectancy of investment hi a particular plant account. The future net salvage is the estimated gross salvage of the plant less any estimated cost of removal. The accumulated depreciation ratio is the ratio of the accumulated depreciation to the related plant in service. It is the amount of plant investment that has been depreciated for a particular plant account. See 47 C.F.R. § 32.2000(g)(2)(ii). 4 Each year, we review full studies submitted by one-third of the carriers (triennial schedule) for which we prescribe depreciation rates. 12313 depreciation studies that include data related to the carriers' recent plant retirements and plans for future plant retirements, along with their preliminary depreciation rate proposals. State commissions are encouraged to provide proposals as well, and many do. The Common Carrier Bureau ("Bureau") then independently analyzes carriers' depreciation data and proposals and prepares its own preliminary proposals that are then forwarded to the state commissions and the carriers. Representatives from the Bureau, the state commissions and the carriers jointly meet to discuss the various proposals. At the conclusion of these meetings, the Bureau makes its recommendations to the carriers and state commission staffs. 4. After these discussions are concluded, the carriers formally file with the Commission proposed depreciation rates pursuant to Sections 43.43 (b) (1) and (b) (2) that may or may not be consistent with the Bureau's recommendations.5 The Bureau places its recommended depreciation rates on public notice to allow interested parties, including the carriers, an opportunity to comment. The Commission then adopts revised depreciation rates after giving full consideration to the comments and the record that has been developed in the proceeding. 5. Carriers are permitted to file studies on an annual basis in order to update their depreciation rates during the three-year period between full studies. Carriers can choose to have their annual update studies reviewed under one of the following procedures: previously established annual update procedures, or the recently established streamlined procedures,6 Under the previous annual update procedures, carriers merely update their rate calculations based upon the life and salvage estimates that underlie the Commission's most recent depreciation prescription orders. On the other hand, under the streamlined depreciation procedures, carriers can select life and salvage factors within ranges established by the Commission, provided that the proposals are consistent with the carriers' operations.7 6. In accordance with our triennial schedule, in which we review one-third of the carriers 5 47 C.F.R. §§ 43.43 (b) (1) & (b) (2). 6 See Simplification of the Depreciation Prescription Process, Report and Order. 8 FCC Red 8025 (1993) (Depreciation Simplification Order), petitions for recon. pending: see also. Second Report and Order. 9 FCC Red 3206 (1994); Third Report and Order. 10 FCC Red 8442 (1995). 7 The requirement that a new depreciation rate be consistent with carriers' operations is designed to assure that carriers do not arbitrarily select life and salvage estimates simply because they are within the prescribed ranges. A carrier's proposed factors are found to be consistent with its operation if the proposed depreciation rate results in the straight line depreciation of the service value over the average remaining life of the plant. Service value is defined as the difference between the net book cost of a class or subclass of plant and its estimated net salvage. See 47 C.F.R. § 32.2000(g)(2)(ii). Generally, such findings are made by analyzing the mix of assets in the carrier's account, studying historical retirement data, and considering expected retirements and additions to the account based on the carrier's construction and modernization plans. 12314 each year, thirteen of the nineteen carriers listed in this order submitted full studies proposing revised depreciation rates based upon their revised estimates of the average remaining life, future net salvage, and updated actual accumulated depreciation ratios.8 These carriers filed depreciation studies under the Commission's new depreciation procedures, which enable them to use projection life and future net salvage factors based upon the ranges established by the Commission.9 Five carriers submitted studies using the established annual update procedures.10 One carrier submitted a full study for one part of its operation and an annual update study for another part of its operation." Following the procedures described above, the Bureau proposed rates in a Public Notice12 released on August 11, 1995, for the carriers submitting full studies and in a Public Notice13 released August 18, 1995, for the carriers filing annual updates. General Communications, Inc. (GCI) filed comments on the full study company proposals and MCI Corporation (MCI) filed comments on the annual update company proposals. Ameritech and Bell Atlantic filed reply comments in response to MCI's comments. HI. DISCUSSION 7. With respect to the full studies filed by carriers on a triennial basis, we note that the life and salvage factors underlying the rates are derived from thorough analysis and discussion. As described above, the carriers' proposals are based on detailed depreciation studies. The Bureau has reviewed and analyzed these studies and discussed them thoroughly with carrier representatives and various state commission staffs. In addition, the Bureau has verified the depreciation rate computations to ensure that the proposed rates are consistent with the life and salvage factors recommended by the Bureau, as well as the methods required under the 8 The carriers that submitted full studies are: Alascom, Inc.; Ameritech-Indiana; Ameritech-Michigan; Ameritech-Wisconsm; Bell Atlantic-District of Columbia; Bell Atlantic- Maryland; Bell Atlantic-Pennsylvania; BellSouth Telecommunications, Inc.; GTE Florida, Inc.; GTE Hawaii, Inc.; NYNEX- New York; Southwestern Bell; and United Telephone-Southeast, Inc. 9 See supra note 4. 10 The carriers that submitted annual update studies are: Ameritech-Illinois; Ameritech- Ohio; Bell Atlantic-Delaware; Bell Atlantic-West Virginia; and Nevada Bell. 11 U S WEST submitted a full study for its Iowa, Minnesota, Nebraska, North Dakota, and South Dakota jurisdictions and an annual update study for its Arizona, Colorado, Idaho, Montana, Oregon, Utah, and Wyoming jurisdictions. 12 Comments Invited On Depreciation Rate Prescriptions Proposed For Domestic Telephone Carriers, Public Notice, rel. August 11, 1995 (Triennial Public Notice). 13 Comments Invited On Depreciation Rate Prescriptions Proposed for Domestic Telephone Carriers, Public Notice, rel. August 18, 1995 (Annual Update Public Notice). 12315 Commission's Rules.14 Furthermore, we note that the proposed rates were placed on public notice for public comment and no party objected to them. We conclude, therefore, that these proposed depreciation rates are consistent with our depreciation policies and are adequately supported by the carriers' underlying studies. We adopt those rates as shown in the Appendix. 8. For carriers that provided annual update studies, the life and salvage factors underlying the rates are based on either the currently prescribed depreciation factors or the streamlined procedures recently adopted by the Commission. 15 Except for three accounts contained in Ameritech's filing, the Bureau verified that the depreciation rate computations are consistent with the Commission's Rules and are based upon the life and salvage factors recommended by the Bureau. Moreover, we note that the proposed rates were placed on public notice and no party objected to them. We conclude, therefore, that these proposed depreciation rates are consistent with our depreciation policies and that the carriers calculated the updated depreciation rates using the proper underlying depreciation factors. We adopt those rates as shown in the Appendix. 9. With respect to Ameritech's submissions for Illinois and Ohio, Bureau staff questioned Ameritech regarding the proposed rates for three accounts. Specifically, Ameritech failed to provide any data showing that the salvage value factors they selected under our streamlined procedures for the three accounts were consistent with their company operations.'6 The Bureau, therefore, analyzed Ameritech's original submissions along with the additional, data and found that these data, even when considered together, failed to support Ameritech's proposed rates. In the Annual Update Public Notice, therefore, the Bureau proposed rates based on factors previously prescribed in Ameritech's most recent full study rather than the proposed rates filed by Ameritech. 17 Neither Ameritech nor any other party filed objections to the Bureau's proposed depreciation rates for these three accounts. We, therefore, adopt these rates as specified in the Appendix. 10. In its comments, GCI contends that certain earth station data in Alascom's 1995 depreciation study are inconsistent with the data filed in its 1989 study. Specifically, GCI states that Alascom has changed the year of installation for some earth stations in its 1995 study to a subsequent year (e.g., from 1977 to 1984). GCI argues that, by moving the installation date 14 See 47 C.F.R. § 32.2000(g)(2). 15 See supra note 6. 16 See supra note 7. 17 Prescription of Revised Percentages of Depreciation Pursuant to the Communications Act of 1934, As Amended, for: Ameritech-Illinois et al.. Memorandum Opinion and Order. 10 FCC Red 2382 (1995) (1994 Depreciation Prescription Order); Prescription of Revised Percentages of Depreciation Pursuant to the Communications Act of 1934, As Amended, for: Ohio Bell Telephone Company et aL, Memorandum Opinion and Order. 9 FCC Red 734 (1994) (1993 Depreciation Prescription Order). 12316 forward in this manner, Alascom has extended the actual number of years over which depreciation is taken on these earth stations. According to GCI, since the depreciation rate for these earth stations is based on a shorter period, i.e.. the useful life of the earth stations, Alascom is recovering the earth station investment twice. 18 11. We acknowledge that Alascom's submission included incorrect data for the Earth Station Account. Alascom's adjusted installation dates were not, however, used in calculating its depreciation rates. Only the retirement dates were used. Thus, we did not rely on these erroneous data in determining Alascom's depreciation rates and we find in this instance that there is no double recovery. Furthermore, our rules protect against double recovery in that they do not allow a carrier to depreciate more plant investment than was originally recorded on its books. 12. Although MCI did not object to the proposed depreciation rates, it requests that the Commission ensure that the underlying plant being depreciated is used solely for telephone service so that ratepayers would not be burdened with depreciation expense associated with plant that would be used for non-telephone services, such as video dialtone. We note that the Commission has addressed this issue hi another proceeding19 and thus we need not address that issue hi this proceeding. IV. CONCLUSION 13. Having considered the carriers' proposals, the studies upon which those proposals are based, the views and recommendations of the states, the responses to the Public Notices, and the Bureau's studies and analyses, we adopt the depreciation rates, and effective dates listed in the Appendix. -V. ORDERING CLAUSES 14. ACCORDINGLY IT IS ORDERED, pursuant to Sections 4(i), 201-205 and 220(b) of the Communications Act of 1934, as amended, 47 U.S.C. Sections 154(i), 201-205 and 220(b), that the percentages of depreciation set forth in the Appendix to this Order ARE PRESCRIBED, effective January 1, 1995. 18 Under GCI's theory, an earth station with a 20 year useful life would be depreciated 5 percent each year. If its installation date were moved forward eight years, it would receive an additional eight years of depreciation, or 40 percent. This would result hi a total recovery of 140 percent of the plant investment. 19 Amendments of Parts 32, 36, 61, 64, and 69 of the Commission's Rules to Establish and Implement Regulatory Procedures for Video Dialtone Service, Memorandum Opinion and Order on Reconsideration and Third Further Notice of Proposed Rulemaking. 10 FCC Red 244 (1994); RAP Letter 25. 10 FCC Red 6008 (Common Carrier Bureau, April 3,1995), applications for review pending. 12317 15. IT IS FURTHER ORDERED, that this Order is effective upon release. FEDERAL COMMUNICATIONS COMMISSION William F. Caton Acting Secretary 12318 APPENDIX PAGE 1 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for ALASCOM. INC. Effective January 1, 1995 2112 2113 2114 2115 2116 2121 2121 2122 2123 2123 2124 2212 2212 2220 2231 2231 2231 2231 2232 2232 2351 2362 2411 2411 2421 2422 2422 2423 2423 2425 2426 Rate Category Description MOTOR VEHICLES AIRCRAFT SPECIAL PURPOSE VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDING SELF-SUPPORTED TOWERS FURNITURE OFFICE SUPPORT EQUIP COMPANY COMM EQUIP GENT PURPOSE COMPUTERS DIGITAL SWITCHING AUTOVON SWITCHING OPERATOR SYSTEMS EARTH STATIONS SATELLITE NON CELLULAR RADIO MICROWAVE RADIO CIRCUIT EQUIP -ANALOG CIRCUIT EQUIP- DIGITAL PUBLIC TELEPHONE EQUIP OTHER TERMINAL EQUIP POLES GUYED TOWERS AERIAL CABLE-METALLIC UG CABLE-METALLIC UG CABLE- NONMETAL BURIED CABLE-METALLIC BURIED CABLE- NONMETAL DEEP SEA CABLE IB NETWORK CABLE Average Remaining Life (years) A 4.3 4.5 1.3 8.2 5.1 19.8 6.7 9.6 5.0 4.3 3.2 1.5 3.5 5.1 6.4""3.1 4.2 2.1 6.2 4.1 2.6 1.5 1.9 1.7 11.9 16.7 10.8 14.7 18.8 7.7 Future Net Salvage (%) B 12 40 15 0 5 5 -25 10 5 10 5 0 -5 -5 5 0 5 -2 0 10 4 10 -25 -25 -5 -10 -10 -5 -5 0 0 Accumulated Depreciation (%) C 67.4 47.3 80.6 90.8 70.9 51.1 91.0 81.8 46.9 71.7 41.9 100.0 94.0 64.0 79.3 11.7 53.3 82.3 82.2 29.3 84.4 80.3 106.1 106.1 94.0 22.3 38.7 75.2 29.7 14.1 45,8 Remaining Life Rate (%) D=(100%-B-C)/A 4.8 2.8 3.4 1.1 4.7 2.2 5.1 0.9 9.6 4.3 16.6 5.0 7.3 11.7 3.1 13.8 13.5 4.7 8.5 9.8 2.8 3.7 12.6 9.9 6.5 7.4 4.3 2.8 5.1 4.6 7.0 The figures in Columns B. C, and D are percentages of gross book cost. 12319 APPENDIX PAGE 2 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for AMERITECH - ILLINOIS Effective January 1, 1995 2112 2115 2116 2121 2122 2123 2123 2124 2211 2212 Sffi^O 2231 2232 2232 2232 2351 2362 2411 2421 2422 2422 2423 2423 2424 2426 2426 2441 Rate Category Description MOTOR VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE SUPPORT EQUIP COMPANY COMM EQUIP GEN'L PURPOSE COMPUTERS ANALOG ELEC SWITCHING DIGITAL ELEC SWITCHING OPERATOR SYSTEMS RADIO SYSTEMS DIGITAL DATA SYSTEMS DIGITAL CIRCUIT ANALOG CIRCUIT PUBLIC TEL TERM EQUIP OTHER TERM EQUIP POLES AERIAL CABLE UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE IB CABLE-METALLIC IB CABLE-NONMETAL CONDUIT SYSTEMS Average Remaining Life (years) A 4.1 7.9 62 27.0 8.1 5.4 4.7 2.4 1.6 9.1 4.1 5.4 2.5 5.8 2.3 4.3 3.4 24.0 10.6 142 13.2 10.4 14.9 23.0 10.6 13.5 45.0 Future Net Salvage (%) B 10 -10 0 0 0 0 0 0 -1 0 0 12 0 0 0 0 0 -93 -25 -8 -16 -10 -10 -5 -15 -15 -5 Accumulated Depreciation (%) C 53.5 -29.7 42.5 28.9 40.1 54.6 1.3 71.7 65.8 29.2 43.2 18.5 74.5 40.6 68.1 58.5 52.2 75.2 45.5 52.6 18.6 41.3 29.2 75.1 62.8 15.1 26.0 Remaining Life Rate (%) D=(100%-B-C)/A 8.9 17.7 9.3 2.6 7.4 8.4 21.0 11.8 22.0 7.8 13.9 12.9 10.2 102 13.9 9.7 14.1 4.9 7.5 3.9 7.4 6.6 5.4 1.3 4.9 7.4 1.8 The figures in Columns B, C, and D are percentages of gross book cost. 12320 APPENDIX PAGE 3 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for AMERITECH - INDIANA Effective January 1, 1995 2112 2115 2116 2121 2122 2123 2123 2124 2211 2212 2220 2232 2232 2232 2351 2362 2411 2421 2422 2422 2423 2423 2424 2426 2441 Rate Category Description MOTOR VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE SUPPORT EQUIP COMPANY COMM EQUIP GENT PURPOSE COMPUTERS ANALOG ELEC SWITCHING DIGITAL ELEC SWITCHING OPERATOR SYSTEMS DIGITAL DATA SYSTEMS DIGITAL CIRCUIT ANALOG CIRCUIT PUBLIC TEL TERM EQUIP OTHER TERM EQUIP POLES AERIAL CABLE UG CABLE-METALLIC UG CABLE- NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE IB NETWORK CABLE CONDUIT SYSTEMS Average Remaining Life (years) A 3.4 6.9 7.6 25.0 72. 5.6 5.0 1.8 2.3 9.8 2.3 3.6 5.3 2.9 3.0 2.6 16.4 11.6 13.9 13.5 12.4 15.5 8.8 9.5 38.0 Future Net Salvage (%) B 10 0 0 5 0 0 0 0 0 0 0 0 0 -2 0 0 -75 -25 -12 -20 -10 -10 -5 -5 -10 Accumulated Depreciation (%) C 56.7 49.4 47.9 27.8 31.9 24.0 74.6 83.6 50.1 32.5 27.0 30.6 51.7 100.8 79.5 66.3 75.2 53.7 49.8 27.3 45.2 31.3 82.9 44.2 27.8 Remaining Life Rate (%) D=(100%-B-C)/A 9.8 7.3 6.9 2.7 9.5 13.6 5.1 9.1 21.7 6.9 31.7 19.3 9.1 0.4 6.8 13.0 6.1 6.1 4.5 6.9 5.2 5.1 2.5 6.4 2.2 The figures in Columns B, C, and D are percentages of gross book cost 12321 APPENDIX PAGE 4 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for AMERITECH - MICHIGAN Effective January 1, 1995 2112 2115 2116 2121 2122 2123 2123 2124 2211 2212 2220 2231 2232 2232 2232 2351 2362 2411 2421 2422 2422 2423 2423 2424 2426 2441 Rate Category Description MOTOR VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE SUPPORT EQUIP COMPANY COMM EQUIP GEN'L PURPOSE COMPUTERS ANALOG ELEC SWITCHING DIGITAL ELEC SWITCHING OPERATOR SYSTEMS RADIO SYSTEMS DIGITAL DATA SYSTEMS DIGITAL CIRCUIT ANALOG CIRCUIT PUBLIC TEL TERM EQUIP OTHER TERM EQUIP POLES AERIAL CABLE UG CABLE-METALLIC UG CABLE-NONMETAL BUR CABLE-METALLIC BUR CABLE-NONMETAL SUBMARINE CABLE IB NETWORK CABLE CONDUIT SYSTEMS Average Remaining Life (years) A ___ 5.4 6.3 29.0 7.9 4.7 3.0 2.3 2.7 9.8 3.5 2.8 3.3 5.6 3.5 4.1"i.7 17.5 8.8 13.9 13.9 11.4 17.3 15.2 10.6 36.0 Future Net Salvage (%) B 10 0 0 8 0 3 0 0 0 0 0 0 0 0 -3 0 0 -75 -25 -30 -20 -10 -10 -5 -5 -10 Accumulated Depreciation (%) C 90.0 -16.1 42.0 23.8 41.1 71.3 38.3 71.9 65.4 32.1 30.6 65.4 56.6 46.0 64.7 53.9 522 76.0 632 49.3 22.0 46.1 18.5 43.3 49.1 28.3 Remaining Life Rate (%) D=(100%-B-C)/A 5.0 21.5 92 2.4 7.5 5.5 20.6 122 12.8 6.9 19.8 12.4 132 9.6 10.9 112 28.1 5.7 7.0 5.8 7.1 5.6 5.3 4.1 5.3 2.3 The figures in Columns B, C, and D are percentages of gross book cost. 12322 APPENDIX PAGE 5 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for AMERITECH - OHIO Effective January 1, 1995 2112 2115 2116 2121 2122 2123 2123 2124 2211 2212 2220 2231 2232 2232 2351 2362 2411 2421 2422 2422 2423 2423 2424 2426 2441 Rate Category Description MOTOR VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE SUPPORT EQUIP COMPANY COMM EQUIP GEN'L PURPOSE COMPUTERS ANALOG ELEC SWITCHING DIGfTAL ELEC SWITCHING OPERATOR SYSTEMS RADIO SYSTEMS DIGITAL DATA SYSTEMS CIRCUIT OTHER PUBLIC TEL TERM EQUIP OTHER TERM EQUIP POLES AERIAL CABLE UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE IB NETWORK CABLE CONDUIT SYSTEMS Average Remaining Life (years) A 3.3 7.5 8.1 26.0 13.0 5.4 32 2.8 2.7 9.0 5.7 2.6 3.4 6.1 5.9 2.4 14.7 92 12.5 19.9 10.4 16.5 4.6 10.2 38.0 Future Net Salvage (%) B 14 0 0 8 5 0 0 6 0 0 -2 0 0 -2 0 1 -90 -25 -9 -17 -10 -10 -17 -15 -18 Accumulated Depreciation (%) C 53.5 3S.7 46.5 26.4 392 14.6 572 682 64.6 33.2 44.6 692 53.8 48.6 66.0 75.0 80.7 62.3 512 182 41.3 17.1 109.1 60.0 33.6 Remaining Life Rate (%) D=(100%-B-C)/A 9.8 8.0 6.6 2.5 4.3 15.8 13.4 92 13.1 7.4 10.1 11.8 13.6 8.8 5.6 10.0 7.4 6.8 4.6 5.0 6.6 5.6 1.7 5.4 2.2 The figures in Columns B, C, and D are percentages of gross book cost 12323 APPENDIX PAGE 6 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for AMERITECH - WISCONSIN Effective January 1, 1995 2112 2115 2116 2121 2122 2123 2123 2124 2211 2212 2220 2231 2232 2232 2232 2351 2362 2411 2421 2422 2422 2423 2423 2424 2426 2441 Rate Category Description MOTOR VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE SUPPORT EQUIP COMPANY COMM EQUIP GEN'L PURPOSE COMPUTERS ANALOG ELEC SWITCHING DIGITAL ELEC SWITCHING OPERATOR SYSTEMS RADIO SYSTEMS DIGITAL DATA SYSTEMS DIGITAL CIRCUfT ANALOG CIRCUIT PUBLIC TEL TERM EQUIP OTHER TERM EQUIP POLES AERIAL CABLE UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE IB NETWORK CABLE CONDUIT SYSTEMS Average Remaining Life (years) A 2.3 5.9 6.4 28.0 8.9 4.7 4.1 1.9 1.8 9.8 4.5 6.0 3.5 5.6 3.2 3.7*2.1 15.4 11.0 12.2 14.7 11.3 17.1 ' 10.0 10.5 37.0 Future Net Salvage <%) 8 10 0 0 5 0 0 0 0 0 0 0 0 0 0 -3 0 0 -75 -18 0 -20 -10 -10 -5 -6 -10 Accumulated Depreciation (%) C 84.4 25.5 44.0 23.5 41.7 47.7 62.6 81.4 66.2 28.2 70.4 70.8 35.0 44.6 81.8 69.2 35.3 71.5 55.8 45.2 28.0 48.3 21.4 53.5 54.8 38.9 Remaining Life Rate (%) D=(100%-B-C)/A 2.4 12.6 8.8 2.6 6.6 11.1 9.1 9.8 18.8 7.3 6.6 4.9 18.6 9.9 6.6 8.3 30.8 6.7 5.7 4.5 6.3 5.5 5.2 5.2 4.9 1.9 The figures in Columns B, C, and D are percentages of gross book cost. 12324 APPENDIX PAGE 7 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for BELL ATLANTIC-WASHINGTON DC, INC. Effective January 1, 1995 2112 2115 2116 2121 2122 2123 2123 2124 2211 2212 2212 2220 2231 2232 2232 2232 2351 2362 2411 2421 2421 2422 2422 2423 2424 2426 2426 2441 Rate Category Description MOTOR VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE SUPPORT EQUIP COMPANY COMM EQUIP COMPUTERS ANALOG ELEC SWITCHING DIGITAL SWITCHING CUST. PREM. SWITCHING OP SYS-DIGITAL SWITCHING RADIO SYSTEMS DIGITAL DATA SYSTEMS DIGITAL CIRCUIT ANALOG CIRCUIT PUBLIC TEL TERM EQUIP OTHER TERM EQUIP POLES AERIAL CABLE-METALLIC AERIAL CABLE-NONMETAL UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE SUBMARINE CABLE IB CABLE-METALLIC IB CABLE-NONMETAL CONDUIT SYSTEMS Average Remaining Life (years) A 3.5 5.4 6.2 27.0 7.1 3.8 4.3 3.0 1.9 9.0 3.5 4.0 3.6 3.7 5.6 4.13".5 3.5 14.9 9.9 15.0 ia7 16.8 13.4 2.9 10.2 13.9 27.0 Future Net Salvage (%) B 10 0 0 10 10 10 -5 5 0 1 3 3 -5 -5 0 -5 0 -5 -100 -15 -15 -10 -10 -10 -5 -25 -15 -10 Accumulated Depreciation (%) C 60.3 3S.2 41.3 15.2 42.2 39.6 44.0 47.9 76.7 37.8 4.1 43.0 59.0 32.4 37.2 34.8 69.0 61.2 101.6 60.2 21.9 56.2 30.1 46.0 96.1 59.6 15.3 44.1 Remaining Life Rate (%) D=(100%-B-C)/A 8.5 11.8 9.5 2-8 6.7 13.3 14.2 15.7 1£3 6.8 26.5 13.5 12.8 19.6 11.2 17.1 8.9 12.5 6.6 5.5 62 4.2 4.8 4.8 3.1 6.4 72. 2.4 The figures in Columns B, C, and D are percentages of gross book cost 12325 APPENDIX PAGE 8 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation tor BELL ATLANTIC-DELAWARE. INC. Effective January 1, 1995 2112 2115 2116 2121 2122 2123 2124 2211 2212 2212 2220 2231 2232 2232 2232 2351 2362 2411 2422 2422 2423 2423 2423 2423 2424 2426 2426 2441 Rate Category Description MOTOR VEHICLES GARAGE WORK EQUiP OTHER WORK EQUIP BUILDINGS FURNITURE OFF/COMPCOMM EQUIP COMPUTERS ANALOG SWITCHING DIGITAL SWITCHING DIGITAL SWITCHING -DMS @ OPERATOR SYSTEMS RADIO SYSTEMS DIGITAL DATA SYSTEMS DIGITAL CIRCUIT ANALOG CIRCUIT EQUIP. PUBLIC TELEPHONE EQUIP OTHER TERM EQUIP POLES UGCABLE-METALLUC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE IB CABLE-METALLIC IB CABLE-NONMETAL CONDUIT SYSTEMS Average Remaining Life (years) A 3.7 8.5 7.9 28.0 7.5 4.4 3.4 0.8 9.3 8.1 4.7 4.7 5.9 3.7 4.3 2'.5 22.0 9.4 16.0 12.7 15.5 9.8 18.1 8.6 11.1 13.0 33.0 Future Net Salvage (%) B 10 0 0 3 0 0 5 0 0 0 0 -3 0 6 ' -5 10 0 AA 5K7 -20 -12 -5 -15 -10 -10 0 -25 -20 -10 Accumulated Depreciation (%) C 46.8 13.6 41.6 29.9 42.0 64.1 41.7 55.4 29.8 57.7 -92 -0.1 57.7 39.7 46.4 70.9 50.9 582 572 17.9 44.3 23.0 37.1 7.5 67.4 58.8 28.2 272 Remaining Life Rate (%) 0=(100%-B-C)/A 11.7 10.2 7.4 2.4 7.7 82 15.7 55.8 7.5 13.5 21.9 9.0 9.2 15.8 4.4 19.6 6.4 6.7 5.9 4.8 5.9 7.4 5.7 3.8 6.0 7.1 2.5 The figures in Columns B, C, and D are percentages of gross book cost. @ The amortization amount for the Digital Switching -DMS Account ordered in FCC 95-32, released January 31, 1995, is continued. 12326 APPENDIX PAGE 9 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for BELL ATLANTIC-MARYLAND, INC. Effective January 1. 1995 Rate Category Description 2112 MOTOR VEHICLES 2115 GAHAGE WORK EQUIP 2116 OTHER WORK EQUIP 2121 BUILDINGS 2122 FURNITURE 2123 OFFICE SUPPORT EQUIP 2123 COMPANY COMM EQUIP 2124 COMPUTERS 2211 ANALOG SWITCHING 2212 DIGITAL SWITCHING 2220 OPERATOR SYS DIGITAL 2231 RADIO SYSTEMS 2232 DIGITAL DATA SYSTEMS 2232 DIGITAL CIRCUIT 2232 ANALOG CIRCUfT EQUIP 2351 PUBLIC TELEPHONE EQUIP 2362 OTHER TERM EQUIP 2411 POLES 2421 AERIAL CABLE-METALLIC 2421 AERIAL CABLE-NONMETAL 2422 UG CABLE-METALLIC 2422 UG CABLE-NONMETAL 2423 BURIED CABLE-METALLIC 2423 BURIED CABLE-NONMETAL 2424 SUBMARINE CABLE 2426 IB CABLE-METALLIC @ 2426 IB CABLE-NONMETAL 2441 CONDUIT SYSTEMS Average Remaining Life (years) A 2.9 52 6.1 27.0 7.8 4.9 4.7 3.0 1.7 8.9 4.2 5.7 3.4 5.8 3.6 3.5 *3.8 15.8 10.1 15.6 13.2 15.0 10.8 18.0 13.5 9.2 15.9 35.0 Future Net Salvage (%) B 10 0 0 8 0 0 -5 3 0 0 0 -3 -5 0 --5 10 -5 -75 -15 -25 -8 -20 -10 -10 -5 -20 -15 -10 Accumulated Depreciation (%) C 61.6 48 29.0 23.1 24.9 46.7 28.5 52.8 65.9 34.3 28.5 3.8 40.2 39.1 71.4 70.4 45.1 47.9 51.0 16.3 55.0 14.5 35.3 14.9 46.0 71.3 10.0 21.5 Remaining Life Rate (%) D=(100%-B-C)/A 9.8 18.3 11.6 2.6 9.6 10.9 16.3 14.7 20.1 7.4 17.0 17.4 19.1 10.5 9.3 5.6 15.8 8.0 6.3 7.0 4.0 7.0 6.9 5.3 4.4 5.3 6.6 2.5 The figures in Columns B, C, and D are percentages of gross book cost @ Extraordinary retirement amortization for the Intrabuilding Cable Account of $6.149 thousand annually over a two year period ending June 30, 1997. 12327 APPENDIX PAGE 10 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for BELL ATLANTIC-PENNSYLVANIA, INC. Effective January 1, 1995 Rate Category Description 2112 MOTOR VEHICLES 2115 GARAGE WORK EQUIP 2116 OTHER WORK EQUIP 2121 BUILDINGS 2122 FURNITURE 2123 OFFICE SUPPORT EQUIP 2123 COMPANY COMM EQUIP 2124 COMPUTERS 2211 ANALOG SWITCHING 2212 DIGFTAL SWITCHING 2220 OPERATOR SYS DIGITAL 2231 RADIO SYSTEMS 2232 DIGITAL DATA SYSTEMS 2232 DIGITAL CIRCUIT 2232 ANALOG CIRCUIT EQUIP 2351 PUBLIC TELEPHONE EQUIP 2362 OTHER TERM EQUIP 2411 POLES 2421 AERIAL CABLE-METALLIC 2421 AERIAL CABLE -NONMETAL 2422 U.G.CABLE-METALUC 2422 U.G.CABLE-NONMETAL 2423 BURIED CABLE-METALLIC 2423 BURIED CABLE-NONMETAL 2424 SUBMARINE CABLE 2426 IB CABLE-METALLIC 2426 IB CABLE-NONMETAL 2441 CONDUIT SYSTEMS Average Remaining Life (years) A 3.8 7.S 8.1 31.0 7.6 4.9 3.9 2.8 2.9 8.9 4.3 3.0 2.9 5.7 3.1 4.1 4:8 22.0 10.7 14.1 13.7 13.9 10.6 15.6 17.8 11.3 11.4 33.0 Future Net Salvage (%) B 10 0 0 2 0 1 1 5 0 0 0 0 0 0 -5 0 -5 -100 -25 -20 -10 -10 -10 -10 -5 -30 -15 -10 Accumulated Depreciation (%) C 42.9 5.3 40.4 21.5 38.1 52.6 28.6 632 64.6 32.5 28.3 81.6 13.8 45.0 71.6 66.5 29.7 53.1 46.0 17.7 38.1 15.4 38.4 19.3 91.1 58.4 26.5 25.0 Remaining Life Rate (%) D=(100%-B-C)/A 12.4 11.8 7.4 2.5 8.1 9.5 18.1 11.4 12.2 7.6 16.7 6.1 29.7 9.6 10.8 8.2 15.7 6.7 7.4 7.3 5.2 6.8 6.8 5.8 0.8 6.3 7.8 2.6 The figures in Columns B, C, and D are percentages of gross book cost. 12328 APPENDIX PAGE 11 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for BELL ATLANTIC-WEST VIRGINIA. INC. Effective January 1. 1995 Rate Category Description 2112 MOTOR VEHICLES 2115 GARAGE WORK EQUIP 2116 OTHER WORK EQUIP 2121 BUILDINGS 2122 FURNITURE 2123 OFFICE SUPPORT EQUIP 2123 COMPANY COMM EQUIP 2124 COMPUTERS 2212 DIGfTAL SWITCHING 2220 OPER SYS DIGITAL 2231 RADIO SYSTEMS 2232 DIGITAL DATA SYSTEMS 2232 DIGITAL CIRCUIT EQUIP 2232 ANALOG CIRCUrr EQUIP 2351 PUBLIC TELEPHONES 2362 OTHER TERM EQUIP 2411 POLES 2421 AERIAL CABLE-METALLIC 2421 AERIAL CABLE -NONMETAL 2422 UG CABLE-METALLIC 2422 UG CABLE-NONMETAL 2423 BURIED CABLE-METALLIC 2423 BURIED CABLE-NONMETAL 2424 SUBMARINE CABLE 2426 IB NETWORK CABLE 2441 CONDUIT SYSTEMS Average Remaining Life (years) A 3.1 6.2 6.3 26.0 7.9 4.6 4.6 £8 9.0 92 3.3 3.5 5.9 3.1 7.1 9.3 T5.0 9.9 17.1 15.3 13.8 9.3 16.4 4.9 9.4 35.0 Future Net Salvage (%) B 10 0 0 4 0 0 -5 0 0 5 -5 -5 0 -5 4 11 -40 -18 -25 -14 -20 -10 -10 0 -21 -10 Accumulated Depreciation (%) C 60.3 35.1 36.0 25.3 41.4 49.7 52.0 53.8 31.1 26.8 59.7 49.7 44.3 58.6 55.2 27.5 51.2 52.8 19.3 45.4 20.1 59.9 37.8 77.1 39.9 28.9 Remaining LHe Rate (%) D=(100%-B-C)/A 9.6 10.5 10.2 2.7 7.4 10.9 11.5 16.5 7.7 7.4 13.7 15.8 9.4 15.0 S.S 6.6 5.9 6.6 6.2 4.5 7.2 5.4 4.4 4.7 8.6 2.3 The figures in Columns B, C, and D are percentages of gross book cost. 12329 APPENDIX PAGE 12 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for BELLSOUTH TELECOMMUNICATIONS, INC. - FLORIDA Effective January 1, 1995 Rate Category Description 2112 MOTOR VEHICLES 2114 SPECIAL PURPOSE VEHICLES 2115 GARAGE WORK EQUIP 2116 OTHER WORK EQUIP 2121 BUILDINGS 2122 FURNITURE 2123 OFFICE SUPPORT EQUIP 2123 COMPANY COMM EQUIP 2124 GEN'L PURPOSE COMPUTERS 2211 ANALOG ESS 2212 DIGITAL ESS 2220 OPERATOR SYSTEMS 2231 RADIO SYSTEMS 2232 CIRCUIT-DOS 2232 ClflCUiT-DiGfTAL 2232 CIRCUIT-ANALOG 2311 STATION APPARATUS 2341 LARGE PBX 2351 PUBU£ TELEPHONE 2362 OTHER TERMINAL EQUIP '2411 POLES 2421 AERIAL CABLE-METALLIC 2421 AERIAL CABLE-NONMETAL 2422 UG CABLE-METALLIC 2422 UG CABLE-NONMETAL 2423 BURIED CABLE-METALLIC 2423 BURIED CABLE-NONMETAL 2424 SUBMARINE CABLE 2426 IB NETWORK CABLE 2441 CONDUIT SYSTEMS Average Remaining Life (years) A 5.1 5.9 6.2 8.3 34.0 7.6 4.8 4.2 2.6 4.1 9.2 5.7 2.8 2.6 5.5 2.2 *4.2 3.1 3.9 2.3 19.6 9.7 15.7 12.2 14.0 9.0 15.7 14.6 11.8 39.0 Future Net Salvage (%) B 10 0 0 1 4 14 10 10 0 0 0 0 -5 0 0 -10 0 0 10 -4 -75 -11 -11 -7 -6 -8 0 -5 -12 -7 Accumulated Depreciation (%) C 22.6 0.8 -121.5 38.8 21.0 58.9 48.1 4.8 64.4 68.8 31.4 18.3 76.4 36.7 46.4 55.5 56.7 48.2 51.8 85.1 47.3 52.1 23.0 47.7 30.3 53.9 26.8 54.6 61.4 26.9 Remaining Life Rate (%) D=(100%-B-C)/A 13.2 16.8 35.7 7.3 22 3.6 8.7 20.3 13.7 7.6 7.5 14.3 10.2 24.3 9.7 24.8 10.3 16.7 9.8 8.2 6.5 6.1 5.6 4.9 5.4 6.0 4.7 3.5 4.3 2.1 The figures in Columns B, C, and D are percentages of gross book cost. 12330 APPENDIX PAGE 13 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for BELLSOUTH TELECOMMUNICATIONS. INC. - GEORGIA Effective January 1, 1995 Rate Category Description 2112 MOTOR VEHICLES 2113 AIRCRAFT 2115 GARAGE WORK EQUIP 2116 OTHER WORK EQUIP 2121 BUILDINGS 2122 FURNITURE 2123 OFFICE SUPPORT EQUIP 2123 COMPANY COMM EQUIP 2124 GEN'L PURPOSE COMPUTERS 2211 ANALOG ESS 2212 DIGITAL ESS 2220 OPERATOR SYSTEMS 2231 RADIO SYSTEMS 2232 CIRCUIT-DOS 2232 CIRCUIT-DIGITAL 2232 CIRCUIT-ANALOG 2311 STATION APPARATUS 2341 LARGE PBX 2351 PUBLIC TELEPHONE 2362 OTHER TERMINAL EQUIP 2411 POLES 2421 AERIAL CABLE-METALLIC 2421 AERIAL CABLE-NONMETAL 2422 UG CABLE-METALLIC 2422 UG CABLE-NONMETAL 2423 BURIED CABLE-METALLIC 2423 BURIED CABLE-NONMETAL 2424 SUBMARINE CABLE 2426 IB NETWORK CABLE 2441 CONDUIT SYSTEMS Average Remaining LHe (years) A 5.3 7.C 5.8 8.3 27.0 8.2 5.5 4.9 2.6 4.1 9.2 5.3 4.1 2.8 5.6 2.3"6.2 4.0 3.8 4.0 17.7 9.5 14.4 12.1 14.8 9.4 15.5 10.0 10.9 44.0 Future Net Salvage (%) B 13 60 0 1 4 14 10 10 0 0 0 0 -5 0 0 -2 0 0 10 -4 -56 -13 -13 -10 -8 -6 -2 -5 -16 -10 Accumulated Depreciation (%) C 30.5 17.2 -236.1 48.3 29.3 49.9 33.5 -16.1 70.7 71.2 30.9 27.1 57.9 20.3 47.7 43.5 15.2 51.9 52.4 74.1 39.6 52.0 25.7 51.0 27.9 45.1 29.0 55.3 58.4 20.6 Remaining Life Rate (%) D=(100%-B-C)/A 10.7 3.0 57.9 6.1 2.5 4.4 10.3 21.7 11.3 7.0 7.5 13.8 11.5 28.5 9.3 25.4 13.7 12.0 9.9 7.5 6.6 6.4 6.1 4.9 5.4 6.5 4.7 5.0 5.3 2.0 The figures in Columns B, C, and D are percentages of gross book cost. 12331 APPENDIX PAGE 14 FEDERAL COMMUNCATIONS COMMISSION Schedule of Annual Percentages of Depreciation for BELLSOUTH TELECOMMUNICATIONS. INC. - NORTH CAROLINA Effective January 1. 1995 Rate Category Description Average Remaining Life (years) A Future Net Salvage (%) B Accumulated Depreciation (%) C Remaining Life Rate (%) D=(100%-B-C)/A 2112 MOTOR VEHICLES 2115 GARAGE WORK EQUIP 2116 OTHER WORK EQUIP 2121 BUILDINGS 2122 FURNITURE 2123 OFFICE SUPPORT EQUIP 2123 COMPANY COMM EQUIP 2124 GEN'L PURPOSE COMPUTERS 2211 ANALOG ESS 2212 DIGITAL ESS 2220 OPERATOR SYSTEMS 2231 RADIO SYSTEMS 2232 CIRCUIT-DOS 2232 CIRCUIT-DIGITAL 2232 CiRCUlT-ANALOG 2311 STATION APPARATUS 2341 LARGE PBX 2351 PUBLIC TELEPHONE 2362 OTHER TERMINAL EQUIP 2411 POLES 2421 AERIAL CABLE-METALLIC 2421 AERIAL CABLE-NONMETAL 2422 UG CABLE-METALLIC 2422 UG CABLE-NONMETAL 2423 BURIED CABLE-METALLIC 2423 BURIED CABLE-NONMETAL 2424 SUBMARINE CABLE 2426 IB NETWORK CABLE 2441 CONDUIT SYSTEMS @ 4.1 5.7 8.4 30.0 6.3 6.4 4.8 ZA 8.7 5.5 4.1 2.7 5.5 1.4 6.6 3.5 3.2 4.1 18.7 9.2 14.8 13.0 14.3 9.5 16.0 9.8 10.8 45.0 10 0 1 3 14 10 10 0 0 0 0 -1 -3 0 -1C 0 0 10 -4 -54 -13 -13 -12 -9 -7 0 -3 -7 -9 502 -100.3 39.8 26.4 58.6 21.0 15.4 53.6 54.6 32.9 29.9 28.7 27.5 48.8 72.7 -34.5 67.2 60.8 71.4 46.9 55.2 28.9 49.7 26.2 45.1 19.4 56.8 56.7 22.6 9.7 35.1 7.0 2.4 4.3 10.8 15.5 16.6 7.7 12.7 17.6 28.0 9.3 £6.3 20.4 9.4 9.1 8.0 5.7 6.3 5.7 4.8 5.8 6.5 5.0 4.7 4.7 1.9 The figures in Columns B, C, and D are percentages of gross book cost. @ The net service value for the Analog Electronic Switching Account is to be amortized over a twenty -four month period ending December 31,1996. 12332 APPENDIX PAGE 15 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for BELLSOUTH TELECOMMUNICATIONS, INC. - SOUTH CAROLINA Effective January 1. 1995 Rate Category Description 2112 MOTOR VEHICLES 2115 GARAGE WORK EQUIP 2116 OTHER WORK EQUIP 2121 BUILDINGS 2122 FURNITURE 2123 OFFICE SUPPORT EQUIP 2123 COMPANY COMM EQUIP 2124 GEN'L PURPOSE COMPUTERS 2211 ANALOG ESS # 2212 DIGrTALESS 2220 OPERATOR SYSTEMS 2231 RADIO SYSTEMS 2232 CIRCUIT-DOS 2232 CIRCUIT-DIGITAL 2232 CIRCUIT-ANALOG 2311 STATION APPARATUS 2341 LARGE PBX 2351 PUBLIC TELEPHONE 2362 OTHER TERMINAL EQUIP 2411 POLES 2421 AERIAL CABLE-METALLIC 2421 AERIAL CABLE-NONMETAL 2422 UG CABLE -METALLIC 2422 UG CABLE-NONMETAL 2423 BURIED CABLE-METALLIC 2423 BURIED CABLE-NONMETAL 2424 SUBMARINE CABLE 2426 IB NETWORK CABLE 2441 CONDUIT SYSTEMS Average Remaining Life (years) A 4.5 5.9 8.0 27.0 7.1 5.9 4.2 2.7 9.0 5.5 4.1 3.1 5.5 1.S 5.8 8:6 3.1 3.5 20.0 9.1 14.2 13.0 15.1 9.4 16.4 9.6 12.7 44.0 Future Net Salvage (%) B 13 0 1 4 14 10 10 0 0 0 0 -7 3 0 -5 0 0 10 -4 -73 -11 -11 -13 -8 -8 0 -1 -13 -8 Accumulated Depreciation (%) C 30.5 22.4 42.0 30.8 46.5 53.6 -41.1 56.5 -80.1 31.4 38.7 74.7 34.8 50.7 67.7 18.8 61.4 67.7 79.1 38.0 57.4 24.6 54.0 29.1 45.5 23.2 28.7 56.9 24.5 Remaining Life Rate (%) D=(100%-B-C)/A 12.6 13.2 7.1 2.4 5.6 62 31.2 16.1 7.6 11.1 7.9 20.1 9.0 ;9.s 14.0 10.7 7.2 7.1 6.8 5.9 6.1 4.5 5.2 6.6 4.7 7.5 4.4 1.9 Annual Amort Expense ($000) E 0 1424 @ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 The figures in Columns B, C, and D are percentages of gross book cost. @ Reflects amortization of the January 1, 1995 reserve imbalance over a twelve month period. # The net service value for the Analog Electronic Switching Account is to be amortized over a thirty-six month period ending December 31, 1997. 12333 APPENDIX PAGE 16 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for GTE-FLORIDA Effective January 1, 1995 2112 2115 2116 2121 2122 2123 2123 2124 2211 2212 999(1 2231 2232 23S1 2362 2411 2421 2421 2422 2422 2423 2423 2424 2424 2426 2431 2441 Rate Category Description MOTOR VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE SUPPORT EQUIP COMPANY COMM EQUIP GEN'L PURPOSE COMPUTERS ANALOG ELECT SWITCHING @ DIGITAL ELEC SWITCHING OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT EQ PUBLIC TELE TERM EQUIP OTHER TERMINAL EQUIP POLES AERIAL CABLE-METALLIC AERIAL CABLE-NONMETAL UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE-METALLIC SUBMARINE CABLE-NONMETAL IB NETWORK CABLE AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 2.7 5.9 6.1 26.0 8.4 5.3 4.8 3.2 9.0 5.9 3.5 4.7 3.5 1.3 13.6 T0.8 14.7 14.2 15.0 11.1 15.0 9.2 15.3 10.0 7.4 34.0 Future Net Salvage (%) B 18 0 0 0 9 8 -5 0 0 0 0 -5 3 0 -5 -75 -35 -25 -17 -9 -10 -10 -5 -5 -10 -7 -10 Accumulated Depreciation <%) C 57.0 38.2 44.0 22.6 35.4 47.7 20.3 342 0.0 35.3 -127.8 70.5 31.3 77,5 702. 73.4 52.5 -0.4 342 17.4 32.5 152 38.5 312 58.9 19.8 20.4 Remaining Life Rate (%) D=(100%-B-C)/A 9.3 10.5 92 3.0 6.6 8.4 17.6 20.6 72 38.6 9.9 14.0 6.4 13.3 7.5 7.6 8.5 5.8 6.1 7.0 6.3 72 4.8 5.1 11.8 2.6 The figures in Columns B, C, and D are percentages of gross book cost @ The net service value for the Analog Switching Account is to be amortized over a thirty-six month period ending December 31,1997. 12334 APPENDIX PAGE 17 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for GTE-HAWAII Effective January 1, 1995 2112 2115 2116 2121 2122 2123 2123 2124 2211 2212 2215 2220 2231 2232 2232 2351 2362 2411 2421 2421 2422 2422 2423 2423 2424 2425 2425 2426 2431 2441 Rate Category Description MOTOR VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE SUPPORT EQUIP COMPANY COMM EQUIP GEN'L PURPOSE COMPUTERS ANALOG ELEC SWITCHING DIGITAL ELEC SWITCHING ELECTROMECH SWITCHING OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT EQUIP CIRCUIT EQUIP TRANSPACIFIC PUBLIC TELE TERM EQUIP OTHER TERMINAL EQUIP POLES AERIAL CABLE-METALLIC AERIAL CABLE- NONMETAL UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE METALLIC BURIED CABLE NONMETAL SUBMARINE CABLE DEEPSEA CABLE METALLIC DEEPSEA CABLE NONMETAL IB NETWORK CABLE AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 3.6 7.5 6.1 30.0 9.7 4.8 3.7 3.6 1.3 8.0 2.5 7.1 6.3 6.2 6.1 3.3 3.6 17.1 13.5 14.7 14.2 14.9 16.5 17.8 12.5 8.5 20.0 13.8 6.3 38.0 Future Net Salvage (%) B 10 0 0 -3 2 0 0 5 -3 0 -6 -6 -5 2 0 5 0 -43 -20 -20 -20 -20 -10 -10 -1 -1 -1 -15 -31 -10 Accumulated Depreciation (%) C 52.2 21.3 39.2 23.4 53.4 77.3 65.1 29.6 84.2 41.4 84.5 35.9 56.3 39.0 45.9 79.9 61.4 34.5 33.5 7.8 30.0 17.1 34.5 . 28.8 30.1 26.9 12.0 52.0 73.5 10.5 Remaining Life Rate (%) D=(100%-B-C)/A 10.5 10.0 10.0 2.7 4.6 4.7 9.4 18.2 14.5 7.3 8.6 9.9 7.7 9.5 6.9 4.6 10.7 6.3 6.4 7.6 6.3 6.9 4.6 4.6 5.7 8.7 4.5 4.6 9.1 2.6 The figures in Columns B, C, and D are percentages of gross book cost 12335 APPENDIX PAGE 18 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages ol Depreciation lor NEW YORK TELEPHONE COMPANY Effective January 1. 1995 2112 2114 2115 2116 2121 2121 2122 2129 2129 2124 2211 2212 2220 2231 2232 2232 2311 23S1 2362 2411 2421 2421 2421 2421 2421 2421 2422 2422 2422 2422 2422 2423 2423 2423 2423 2424 2424 2431 2441 2441 Rate Category Description MOTOR VEHICLES SPECIAL PURPOSE VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS BUILDING FIXTURES FURNITURE OFFICE EQUIP OFFICIAL COMM EQUIP GENT. PURPOSE COMPUTERS ESS ANALOG ESS DIGITAL OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT- DOS CIRCUIT-OTHER STATION APPARATUS PUBLIC TELEPHONE OTHER TERM EQUIP POLE LINES SUB AER CBL BLDG- METAL SUB AER CBL BLDG-NMET SUB AER CBL OTH-METALLIC SUB AER CBL OTH-NMET TRK AER CBL-METALLIC TRKAERCBL-NMET SUB UG CBL-METALLIC SUB UG CBL-NMET TRKUGCBL-METAL TRK UG CBL-NMET SM TRK UG CBL-NMET MM SUB BURIED CBL- METALLLIC SUB BURIED CBL-NMET TRK BURIED CBL-METALLIC TRK BURIED CBL-NMET SUBMARINE CBL-METALLIC SUBMARINE CBL-NMET AERIAL WIRE UG CONDUIT -MAIN UG CONDUIT-SUBSIDIARY Average Remaining Life (years) A ___ 6.2 3.7 8.7 35.0 10.5 9.0 5.0 2.9 2.7 1.7 9.0 6.6 3.2 2.6 4.8 2.2 3.3 2.2*" 23.0 10.7 12.5 10.7 14.7 3.8 14.5 12.6 15.4 4.1 13.2 6.5 13.9 17.3 3.7 16.1 13.4 14.3 5.2 49.0 40.0 Future Net Salvage (%) B 0 5 5 0 -1 -4 0 0 _ o 0 -2 0 -1 -5 -5 -5 3 0 -5 -130 -21 -12 -35 -25 -14 -12 -46 -20 -17 -12 -9 -10 -10 -4 -10 -10 -10 -29 -20 -12 Accumulated Depreciation (%) C 99.3 73.6 23.6 30.9 20.7 28.6 29.1 40.8 82.9 60.4 81.0 32.3 53.8 66.6 70.1 S9.0 9G.1 66.7 78.4 64.0 49.6 14.0 49.1 12.9 97.5 17.7 51.8 20.6 99.8 25.6 64.2 41.6 12.4 96.6 19.8 66.3 34.4 78.2 30.4 22.0 Remaining Life Rate (%) 0=(100%-B-C)/A 5.0 3.5 8.2 7.92.3' 7.2 7.9 11.8 6.6 14.7 12.4 7.5 72 12.0 13.4 9.6 0.4 10.1 12.1 7.2 6.7 7.8 8.0 7.6 4.3 6.5 7.5 6.5 4.2 6.5 6.9 4.9 5.6 2.0 5.6 3.3 5.3 9.8 1.8 2.3 The ligutes in Columns R. C. ~\nn 0 ; .!*= !>!u.frr,:ivj"S ot OTOSS boo* cosi. 12336 APPENDIX PAGE 19 FEDERAL COMMUNCATIONS COMMISSION Schedule of Annual Percentages of Depreciation for NEVADA BELL Effective January 1, 1995 2112 2114 2115 2116 2121 2122 2123 2124 2211 2212 2215 2220 2231 2232 2232 2232 2341 2351 2362 2411 2421 2421 2422 2422 2423 2423 2426 2431 2441 Rate Category Description MOTOR VEHICLES SPECIAL PURPOSE VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE EQUIPMENT GEN'L PURPOSE COMPUTERS ANALOG ESS @ DIGITAL ELEC SWITCHING ELECTROMECH SWITCHING OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT EQUIP DOS CIRCUIT EQuiP DIGITAL CIRCUIT EQUIP ANALOG OTHER TERMINAL EQUIP PUBLIC TELEPHONE EQUIP OTHER TERM EQUIP POLE LINES AERIAL CABLE-METALLIC AERIAL CABLE-NONMETAL UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL IB NETWORK CABLE AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 3.7 12.4 15.5 12.7 26.0 7.4 3.0 2.3 9.0 1.2 6.2 4.3 3.1 5.5 5.0 _-.*_ 2.7 2.0 16.3 10.5 20.0 13.6 20.0 9.9 19.6 62 1.7 35.0 Future Net Salvage (%) B 15 0 0 6 -2 0 0 0 0 4 -9 0 0 0 1 0 0 0 -1 -26 -9 -10 -2 -5 -3 0 -2 -25 -3 Accumulated Depreciation (%) C 62.7 572 2.8 40.1 21.7 16.6 43.0 65.0 0.0 32.0 53.1 1.7 65.3 -5.0 23.6 47.9 100.0 82.7 86.4 83.3 64.1 13.8 46.5 12.6 41.0 18.6 69.1 124.6 25.0 Remaining Life Rate (%) D=(100%-B-C)/A 6.0 3.5 6.3 4.2 3.1 11.3 19.0 152 7.1 46.6 15.9 8.1 33.9 126 10.4 5.0 6.4 7.3 2.6 4.3 4.8 4.1 4.6 6.3 42 4.0 02 2.2 The figures in Columns B, C, and D are percentages of gross book cost. @ The amortization amount for the Analog ESS Account ordered in FCC 92-38. released January 31,1992, is continued. 12337 APPENDIX PAGE 20 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for SOUTHWESTERN BELL TELEPHONE COMPANY - ARKANSAS Effective January 1, 1995 2112 2115 2116 2121 2122 2123 2123 2124 2211 2212 2215 2220 2231 9932) 2232 2232 2311 2341 2351 2362 2411 2421 2422 2422 2422 2422 2423 2423 2423 2423 2424 2426 2431 2441 Rate Category Description MOTOR VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE SUPPORT OFFICE COMM EQUIP GEN'L PURPOSE COMPUTERS ANALOG ESS @ DIGITAL ESS STEP-BY-STEP # OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT-DOS CIRCUIT- DIGITAL CIRCUIT-ANALOG STATION APPARATUS LARGE PBX PUBLIC TELEPHONE OTHER TERM EQUIP POLES AERIAL CABLE UG CABLE-EXCH METALLIC UG CABLE-TOLL METALLIC UG CABLE-EXCH NONMETAL UG CABLE-TOLL NONMETAL BURIED CABLE-EXCH METALLIC BURIED CABLE-TOLL METALLIC BURIED CA-EXCH NONMETAL BURIED CA-TOLL NONMETAL SUBMARINE CABLE IB NETWORK CABLE AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 3.9 6.4 8.9 31.0 9.6 6.2 3.8 3.3 10.2 4.4 4.6 3.7 5.8 3.8 3.8 3.5 .4,0 3.7 16.2 13.8 13.7 4.2 17.8 13.4 13.9 5.3 19.8 14.7 12.0 13.7 4.5 37.0 Future Net Salvage (%) B 10 1 1 4 1 2 5 5 -2 4 0 0 0 0 0 -4 -2 -2 0 0 -77 -43 -31 -15 -10 -10 -6 0 -6 -6 -1 -6 -64 -6 Accumulated Depreciation (%) C 53.4 33.5 44.8 22.8 81.8 30.6 52.5 61.0 48.4 23.6 0.0 20.7 18.9 54.8 36.9 58.4 92.5 46.1 81.3 60.9 76.8 78.7 55.7 96.5 19.2 38.1 50.4 57.9 8.4 24.4 46.5 77.9 138.9 31.3 Remaining Life Rate (%) D=(100%-B-C)/A 9.4 . 10.2 6.1 2.4 1.8 10.9 11.2 .10.3 7.1 18.0 17.6 1£2 10.9 12.0 2.5 16.0 4.7 10.6 6.2 4.7 5.5 4.4 5.1 5.4 4.0 7.9 4.9 5.6 4.5 2.1 5.6 2.0 The figures in Columns B. C, and D are percentages of gross book cost. @ The net service value for the Analog Electronic Switching Account is to be amortized over a twenty four month period ending December 31, 1996. # The monthly net service value amortization ordered for the Step-By-Step Account in FCC 93-40. released January 15. 1993. is continued. 12338 APPENDIX PAGE 21 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for SOUTHWESTERN BELL TELEPHONE COMPANY - KANSAS Effective January 1, 1995 2112 2115 2116 2121 2122 2123 2123 2124 2211 2212 2215 2220 2231 2232 2232 2232 2311 2341 2351 2362 2411 2421 2422 2422 2422 2422 2423 2423 2423 2423 2424 2426 2431 2441 Rate Category Description MOTOR VEHICLES GARA3E WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE SUPPORT OFFICE COMM. EQUIP GEN'L PURPOSE COMPUTERS ANALOG ESS DIGITAL ESS STEP-BY-STEP @ OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT-DDS CIRCUIT- DIGiTAL CIRCUIT-ANALOG STATION APPARATUS LARGE PBX PUBLIC TELEPHONE OTHER TERM EQUIP POLES AERIAL CABLE UG CABLE-EXCH METALLIC UG CABLE-TOLL METALLIC UG CABLE-EXCH NONMETAL UG CABLE-TOLL NONMETAL BURIED CABLE-EXCH METAL BURIED CABLE-TOLL METAL BURIED CA-EXCH NONMETAL BURIED CA-TOLL NONMETAL SUBMARINE CABLE IB NETWORK CABLE AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 4.5 5.6 8.6 26.0 10.9 6.5 4.8 3.5 7.7 10.0 4.6 5.6 3.5 6.2 4.8 5.4 4.3 62 3.8 10.9 12.7 14.9 3.5 12.9 13.5 12.7 4.7 17.4 14.9 1-1.3 13.3 2.7 40.0 Future Net Salvage (%) B 13 3 3 6 6 1 1 5 -2 , 4 0 0 0 0 c -4 -2 -2 3 -2 -91 -29 -9 -18 -10 -10 -8 -1 -6 -6 o. -17 -84 -6 Accumulated Depreciation (%) C 49.3 32.1 41.0 26.1 7.0 15.1 45.9 58.3 36.5 20.9 0.0 7.1 51.8 58.2 42.2 54.1 58.9 74.3 64.2 52.5 103.5 53.5 58.5 43.4 23.4 33.5 48.6 52.3 17.2 25.2 72.1 56.7 132.3 27.5 Remaining Life Rate (%) D=(100%-B-C)/A 8.4 11.6 6.5 2.6 8.0 12.9 11.1 10.5 8.5 7.5 ___ 20.2 8.6 11.9 9.3 10.4 8.0 6.4 5.3 13.0 8.0 5.9 3.4 21.3 6.7 5.7 4.7 10.4 5.1 5.4 2.5 4.5 19.1 2.0 The figures in Columns B, C, and D are percentages of gross book cost. @ The monthly net service value amortization ordered for the Step-By-Step Account in FCC 93-40, released January 15. 1SS3. is continued. 12339 APPENDIX PAGE 22 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for SOUTHWESTERN BELL TELEPHONE COMPANY - MISSOURI Effective January 1. 1995 2112 211E 2116 2121 2122 2123 2123 2124 2211 2212 2220 2231 2232 2232 2232 2311 2341 2351 2362 2411 :2421 2422 2422 2422 2422 2423 2423 2423 2423 2424 2426 2431 2441 Rate Category Description MOTOR VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE SUPPORT OFFICE COMM EQUIP GENt. PURPOSE COMPUTERS ANALOG ESS DIGITAL ESS OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT- DOS CIRCUIT-DIGITAL CIRCUIT- ANALOG STATION APPARATUS LARGE PBX PUBLIC TELEPHONE OTHER TERM EQUIP POLES AERIAL CABLE UG CABLE-EXCH METALLIC UG CABLE-TOLL METALLIC UG CABLE-EXCH NONMETAL UG CABLE-TOLL NONMETAL BURIED CABLE-EXCH METAL BURIED CABLE-TOLL METAL BURIED CA-EXCH NONMETAL BURIED CA-TOLL NONMETAL SUBMARINE CABLE IB NETWORK CABLE AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 4.1 8.2 9.2 42.0 9.? 8.0 4.9 3.5 6.4 9.7 8.7 62 3.4 6.4 5.2 4.9 *2 7.8 3.7 21.0 14.1 14.0 4.0 15.3 13.3 14.5 3.6 17.9 14.7 11.7 16.2 4.0 46.0 Future Net Salvage (%) B 10 1C 3 4 7 0 11 5 0 4 3 3 0 0 -3 -2 -2 15 1 -120 -46 -15 1 -10 -8 -10 -1 -5 -5 2 -17 -211 -6 Accumulated Depreciation (%) C 582 2S.5 45.6 202 -442 9.8 432 42.3 38.0 23.8 32.6 412 73.1 37.9 5o.7 63.0 42.5 59.4 56.1 74.3 54.4 56.1 57.7 19.4 33.5 38.5 26.5 14.1 21.5 47.3 40.7 1626 2 2 Remaining Life Rate (%) D=(100%-B-C)/A 7.8 8.0 5.6 1.8 13.9 11.3 9.3 15.1 9.7 7.4 7.4 9.0 7.9 9.7 8.5 8.0 14.2 3.3 11.6 6.9 6.5 4.2 10.3 5.9 5.6 4.9 20.7 5.1 5.7 4.3 4.7 32.1 1.7 The figures in Columns B, C, and D are percentages of gross book cost. 12340 APPENDIX PAGE 23 FEDERAL COMMUNCATIONS COMMISSION Schedule of Annual Percentages of Depreciation for SOUTHWESTERN BELL TELEPHONE COMPANY - OKLAHOMA Effective January 1, 1995 2112 2115 2116 2121 2122 2123 2123 2124 2211 2212 221S 2220 2231 2232 2232 2232 2311 2341 2351 2362 2411 2421 2422 2422 2422 2422 2423 2423 2423 2423 2424 2426 2431 2441 Rate Category Description MOTOR VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE SUPPORT OFFICE COMM. EQUIP GEN'L PURPOSE COMPUTERS ANALOG ESS DIGITAL ESS STEP-BY-STEP @ OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT-DOS CIRCUIT -DIGTiAL CIRCUIT-ANALOG STATION APPARATUS LARGE PBX PUBLIC TELEPHONE OTHER TERM EQUIP POLES AERIAL CABLE UG CABLE-EXCH METALLIC UG CABLE-TOLL METALLIC UG CABLE-EXCH NONMETAL UG CABLE-TOLL NONMETAL BURIED CABLE-EXCH METALLIC BURIED CABLE-TOLL METALLIC BURIED CA-EXCH NONMETAL BURIED CA-TOLL NONMETAL SUBMARINE CABLE IB NETWORK CABLE AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 3.8 7.0 8.5 25.0 10.1 5.9 3.5 2.7 7.0 9.9 4.4 3.9 4.6 6.6 5.0 '4.4 4.9 6.1 3.6 13.9 13.2 13.4 4.7 14.4 13.5 12.1 5.8 17.7 14.8 12.3 13.3 5.6 42.0 Future Net Salvage (%) B 12 0 0 3 7 0 2 3 -2 4 -6 1 2 0 0 -4 -2 -2 1 -2 -158 -48 -11 -2 -10 -10 -9 0 -6 -6 -4 -17 -84 -6 Accumulated Depreciation (%) C 52.3 20.5 46.0 36.8 -41.3 14.6 69.5 92.6 40.8 23.7 41.5 49.9 57.4 64.2 39.0 74.7 51.5 53.8 66.1 56.6 116.1 75.8 58.2 80.4 24.0 38.3 52.7 67.0 12.1 21.7 75.2 81.1 157.9 25.1 Remaining Life Rate (%) D-=(100%-B-C)/A 9.4 11.4 6.4 2.4 13.3 14.5 8.1 1.6 8.7 7.3 11.2 10.4 7.8 9.2 5.9 11.5 9.8 5.4 12.6 10.2 5.5 3.9 4.6 6.0 5.3 4.7 5.7 5.3 5.7 2.3 2.7 4.7 1.9 The figures in Columns B, C, and D are percentages of gross book cost. 9Q 2231 2232 2232 p?3? 2351 2362 2411 2421 2421 2422 2422 2423 2423 2424 2424 2426 2426 2431 2441 Rate Category Description MOTOR VEHICLES AIRCRAFT SPECIAL PURPOSE VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE EQUIP COMPANY COMM EQUIP GENT PURPOSE COMPUTERS ANALOG SW EQUIP DIGITAL SW EQUIP OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT-DOS CIRCUIT-DIGITAL CIRCUIT-ANALOG PUB TEL TERM EQUIP OTHER TERM EQUIP POLE LINES AERIAL CABLE-METALLIC AERIAL CABLE-NONMETAL UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE- METALLIC SUBMARINE CABLE-NONMETAL IB CABLE-METALLIC IB CABLE-NONMETAL AERIAL WIRE CONDUIT SYSTEMS Average Remaining Ufe (years) A 3.3 1.3 10.4 12.5 12.0 28.0 9.6 5.7 3.7 3.3 2.3 9.5 3.8 6.1 4.0 5.6 *2.6 4.7 7.2 12.0 1Z5 14.8 12.4 16.1 10.7 17.2 17.7 14.6 7.8 17.1 4.7 41.0 Future Net Salvage (%) B 10 56 2 0 2 -10 1 1 0 5 1 3 0 1 o 4 -2 5 -4 -66 -41 -30 -23 -12 -3 -3 0 0 -4 -4 -153 -10 Accumulated Depreciation (%) C 61.5 37.5 56.4 M2. 28.0 25.8 12.9 14.4 59.1 39.0 62.6 24.5 90.2 48.9 50.4 39.0 79.8 78.4 65.4 79.6 50.5 13.6 44.1 17.6 33.2 12.5 46.9 32.4 56.8 15.0 144.1 21.7 Remaining Life Rate (%) D=(100%-B-C)/A 8.6 5.0 4.0 7.0 5.8 3.0 9.0 14.8 11.1 17.0 15.8 7.6 2.6 8.2 9.7 10.2 8.5 3.5 5.4 7.2 7.2 7.9 6.4 5.9 6.5 5.3 3.0 4.6 6.1 5.2 23.2 2.2 The figures in Columns B, C, and D are percentages of gross book cost. 12347 APPENDIX PAGE 30 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for U S WEST COMMUNICATIONS, INC. - IDAHO Effective January 1, 1995 2112 2114 2115 2116 2121 2122 2123 2123 2124 2211 2212 2220 2231. 2232 2232 2232 2351 2362 2411 2421 2421 2422 2422 2423 2423 2424 2424 2426 2426 2431 2441 Rate Category Description MOTOR VEHICLES SPECIAL PURPOSE VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE EQUIPMENT COMPANY COMM EQUIP GENT PURPOSE COMPUTERS ANALOG SW EQUIP DIGITAL SW EQUIP OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT-DOS CIRCUIT-DiGITAL CIRCUIT-ANALOG PUB TEL TERM EQUIP OTHER TERM EQUIP POLE LINES AERIAL CABLE-METALLIC AERIAL CABLE-NONMETAL UNDGRD CABLE-METALLIC UNDGRD CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE-METALLIC SUBMARINE CABLE-NONMETAL IB CABLE-METALLIC IB CABLE-NONMETAL AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 3.7 12.7 13.6 11.9 25.0 9.3 5.2 4.6 3.3 2.7 9.4 1.2 8.1 5.2 6.0 3.5 '3.3 4.2 10.4 105 13.4 12.8 17.4 155 17.8 15.2 11.4 10.9 4.9 44.0 Future Net Salvage (%) B 11 12 12 12 -1 1 0 1 3 2 3 0 -5 -4 3 -5 5 1 -56 -36 -25 -20 -20 -7 -10 -5 -5 -1 -14 -123 -5 Accumulated Depreciation (%) C 55.1 22.9 -1.6 33.8 31.1 -12.1 31.5 54.9 39.0 60.4 27.7 96.1 42.6 37.8 34.0 54.0 86.6 62.1 81.0 55.5 185 45.0 14.5 38.8 18.3 56.9 0.0 53.1 10.1 99.0 22.4 Remaining Life Rate (%) D=(100%-B-C)/A 9.2 5.1 6.6 4.6 2.8 11.9 135 9.6 17.6 13.9 7.4 3.3 7.7 12.7 10.5 14.6 2.5 8.8 7.2 7.9 8.0 5.9 6.1 4.5 5.2 3.2 5.0 45 9.5 25.3 1.9 The figures in Columns B, C, and D are percentages of gross book cost. 12348 APPENDIX PAGE 31 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for U S WEST COMMUNICATIONS, INC. - IOWA Effective January 1. 1995 2112 2114 2115 2116 2121 2122 2123 2123 2124 2211 2212 2220 2231 2232 2232 2232 2351 2362 2411 2421 2421 2422 2422 2423 2423 2424 2424 2426 2426 2431 2441 Rate Category Description MOTOR VEHICLES SPECIAL PURPOSE VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE EQUIPMENT COMPANY COMM EQUIP GEN'L PURPOSE COMPUTERS ANALOG SW EQUIP DIGITAL SW EQUIP OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT-DOS CIRCUIT-DIGITAL CIRCUIT-ANALOG PUB TEL TERM EQUIP OTHER TERM EQUIP POLE LINES AERIAL CABLE-METALLIC AERIAL CABLE-NONMETAL UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE-METALLIC SUBMARINE CABLE-NONMETAL IB CABLE-METALLIC IB CABLE-NONMETAL AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 4.3 15.0 9.3 9.8 27.0 5.0 4.0 3.0 3.5 9.5 1.3 6.3 5.2 5.6 2.3 '5.6 4.6 7.1 9.3 11.9 11.4 15.7 9.7 17.2 2.6 19.1 9.5 14.6 2.9 33.0 Future Net Salvage (%) B 11 10 0 4 7 0 0 0 5 0 0 0 -2 -1 0 -3 5 4 -100 -24 -24 -23 -23 -10 -10 -5 -5 -21 -21 -47 -18 Accumulated Depreciation (%) C 50.0 O.C -38.1 45.8 21.5 100.0 64.1 44.5 492 60.3 22.6 87.3 74.8 29.3 42.1 62.0 58.3 45.4 142.9 80.3 7.5 66.9 25.6 57.6 17.7 96.6 8.3 82.5 26.5 93.4 54.0 Remaining Life Rate (%) D=(100%-B-C)/A 9.1 6.0 14.8 5.1 2.6 5.0 72. 13.9 15.3 11.3 8.1 9.8 4.3 13.8 10.3 17.8 6.6 11.0 8.0 4.7 9.8 4.9 6.2 5.4 5.4 3.2 5.1 4.1 6.5 18.5 1.9 The figures in Columns B, C, and D are percentages of gross book cost. 12349 APPENDIX PAGE 32 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for U S WEST COMMUNICATIONS. INC. - MINNESOTA Effective January 1. 1995 2112 2114 2115 2116 2121 2122 2123 2123 2124 2211 2212 2220 2231 2232 2232 2232 2351 2362 2411 2421 2421 2422 2422 2423 2423 2424 2424 2426 2426 2431 2441 Rate Category Description MOTOR VEHICLES SPECIAL PURPOSE VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE EQUIPMENT COMPANY COMM EQUIP GEN'L PURPOSE COMPUTERS ANALOG SW EQUIP DIGITAL SW EQUIP OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT-DOS CIRCUIT-DIGITAL CIRCUIT-ANALOG PUB TEL TERM EQUIP OTHER TERM EQUIP POLE LINES AERIAL CABLE-METALLIC AERIAL CABLE-NONMETAL UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE-METALLIC SUBMARINE CABLE-NONMETAL IB CABLE-METALLIC IB CABLE-NONMETAL AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 4.7 6.5 9.3 10.8 28.0 7.6 4.4 32 2.3 9.5 6.1 3.1 5.6 5.7 3.2*5.7 3.9 6.4 9.7 10.6 12.7 15.0 11.3 15.6 4.8 18.3 10.4 14.2 3.6 37.0 Future Net Salvage (%) B 10 0 0 8 6 1 0 -2 5 0 3 0 -3 0 0 0 5 7 -69 -24 -24 -7 -7 -10 -10 -1 -1 -14 -14 -72 -18 Accumulated Depreciation (%) C 48.5 6S.S -79.2 36.5 18.3 99.0 17.3 42.8 50.4 55.4 24.6 852 58.6 6.9 40.7 66.1 67.6 79.9 134.0 69.0 ' -10.1 52.0 22.2 49.8 18.7 78.7 20.2 78.2 25.3 73.4 38.0 Remaining Life Rate <%) D=(100%-B-C)/A 8.8 4.6 19.3 5.1 2.7 5.0 10.9 13.5 13.9 19.4 7.6 2.4 14.3 16.6 10.4 10.6 4.8 3.4 5.5 5.7 12.7 4.3 5.7 5.3 5.9 4.6 4.4 3.4 6.2 27.4 2.2 The figures in Columns B, C. and D are percentages of gross book cost. 12350 APPENDIX PAGE 33 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for U S WEST COMMUNICATIONS, INC. - MONTANA Effective January 1, 1995 2112 2114 2115 2116 2121 2122 2123 2123 2124 2211 2212 2220 2231 2232 2232 2232 2351 2362 2411 2421 2421 2422 2422 2423 2423 2424 2424 2426 2426 2431 2441 Rate Category Description MOTOR VEHICLES SPECIAL PURPOSE VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE EQUIP COMPANY COMM EQUIP GEN'L PURPOSE COMPUTERS ANALOG SW EQUIP @ DIGITAL SW EQUIP OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT-DOS CIRCUIT-DIGITAL CIRCUIT -ANALOG PUB TEL TERM EQUIP OTHER TERM EQUIP POLE LINES AERIAL CABLE-METALLIC AERIAL CABLE-NONMETAL UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE-METALLIC SUBMARINE CABLE-NONMETAL IB CABLE-METALLIC IB CABLE-NONMETAL AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 4.1 11.3 14.8 13.1 195 12.4 3.9 3.5 15 9.3 4.8 9.0 4.1 5.3 3.4 5.8 42 14.0 12.0 13.0 12.5 17.2 15.4 18.6 13.5 25.0 13.1 9.9 4.7 38.0 Future Net Salvage (%) B 10 13 13 13 -10 7 7 1 5 2 3 0 -3 15 2 -5 5 9 -64 -42 -25 -30 -20 -3 -10 -5 -5 -9 -10 -100 -15 Accumulated Depreciation (%) C 58.1 340 -29.4 8.5 38.0 -0.5 28.8 72.1 78£ 98.0 28.1 2.1 28.1 37.7 22.0 57.6 86.3 45.8 95.6 53.8 12.7 53.8 17.0 37.3 14.7 60.9 0.0 542 23.9 157.7 30.8 Remaining Life Rate (%) D=(100%-B-C)/A 7.8 4.7 7.9 6.0 3.6 7.5 16.5 7.7 8.8 7.4 20.4 8.3 11.5 11.4 13.9 2.3 10.8 4.9 7.4 8.6 6.1 6.0 4.3 5.1 3.3 4.2 4.2 8.7 9.0 2.2 The figures in Columns B, C. and D are percentages of gross book cost @ The amortization amount for the Analog Switching Account ordered in FCC 94-13, released January 31,1994, is continued. 12351 APPENDIX PAGE 34 FEDERAL COMMUNCAT1ONS COMMISSION Schedule of Annual Percentages of Depreciation for U S WEST COMMUNICATIONS, INC. - NEBRASKA Effective January 1, 1995 2112 2114 2115 2116 2121 2122 2123 2123 2124 2211 2212 2220 2231 2232 2232 2232 2351 2362 2411 2421 2421 2422 2422 2423 2423 2424 2424 2426 2426 2431 2441 Rate Category Description MOTOR VEHICLES SPECIAL PURPOSE VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE EQUIP COMPANY COMM EQUIP GENT. PURPOSE COMPUTERS ANALOG SW EQUIP DIGITAL SW EQUIP OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT-DOS CIRCUiT-DIGITAL CIRCUIT-ANALOG PUB TEL TERM EQUIP OTHER TERM EQUIP POLE LINES AERIAL CABLE-METALLIC AERIAL CABLE-NONMETAl UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE-METALLIC SUBMARINE CABLE-NONMETAL IB CABLE-METALLIC IB CABLE-NONMETAL AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 5.3 6.7 8.7 9.4 30.0 7.9 8.1 4.4 2.7 ?" (,. --- 6.7 5.1 5.6 2.3 13-.9 4.5 7.6 7.7 15.0 12.1 15.2 9.3 17.1 72. 18.4 82 16.7 2.9 37.0 Future Net Salvage (%) B 9 0 0 7 3 0 0 -3 0 -2 3 0 -5 -1 0 -2 5 -5 -100 -20 -20 -28 -28 -15 -15 -1 -1 -20 -20 -34 -18 Accumulated Depreciation (%) C 47.3 54.9 23.8 30.1 232 94.8 23.1 14.9 58.6 54.3 29.5 100.0 79.9 402 33. J 55.0 73.1 62.2 110.8 80.5 -336.0 62.8 20.5 58.7 16.0 47.6 20.6 81.7 31.8 108.4 38.3 Remaining LJfe Rate (%) D=(100%-B-C)/A 8.2 6.7 8.8 6.7 2.5 0.7 9.5 20.0 15.3 14.5 7.3 5.0 3.7 11.9 11.1 20.4 3.2 9.5 11.7 5.1 30.4 5.4 7.1 6.1 5.8 7.4 4.4 4.7 5.3 8.8 2.2 The figures in Columns B, C, and D are percentages of gross book cost 12352 APPENDIX PAGE 35 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for U S WEST COMMUNICATIONS, INC. - NORTH DAKOTA Effective January 1. 1995 Rate Category Description 2112 MOTOR VEHICLES 21 14 SPECIAL PURPOSE VEHICLES 2115 GARAGE WORK EQUIP 2116 OTHER WORK EQUIP 2121 BUILDINGS 2122 FURNITURE 2123 OFFICE EQUIP 2123 COMPANY COMM EQUIP 2124 GEN'L PURPOSE COMPUTERS 2211 ANALOG SW EQUIP 2212 DIGITAL SW EQUIP 2220 OPERATOR SYSTEMS 2231 RADIO SYSTEMS 2232 CIRCUIT-DOS 2232 CIRCUIT-DIGITAL 2232 CIRCUIT-ANALOG 2351 PUB TEL TERM EQUIP 2362 OTHER TERM EQUIP 2411 POLE LINES 2421 AERIAL CABLE-METALLIC 2421 AERIAL CABLE-NONMETAL 2422 UG CABLE-METALLIC 2422 UG CABLE-NONMETAL 2423 BURIED CABLE-METALLIC 2423 BURIED CABLE-NONMETAL 2424 SUBMARINE CABLE-METALLIC 2424 SUBMARINE CABLE-NONMETAL 2426 IB CABLE-METALLIC 2426 IB CABLE-NONMETAL 2431 AERIAL WIRE 2441 CONDUIT SYSTEMS Average Remaining Life (years) A 4.4 14.0 11.2 8.5 19.3 11.9 7.1 4.0 3.1 2.7 9.3 3.3 3.6 5.5 5.8 3.2 *3.1 5.1 5.5 8.1 13.6 10.3 17.0 9.8 16.1 10.3 25.0 8.9 14.5 4.5 37.0 Future Net Salvage (%) B 14 10 0 10 10 0 0 -1 5 0 0 0 -5 -2 0 -3 5 -3 -72 -40 -40 -17 -17 -10 -10 0 0 -14 -14 -100 -18 Accumulated Depreciation (%) C 57.3 0.0 -94.1 65.6 23.3 99.0 48.9 67.8 40.5 86.4 24.7 93.8 70.2 22.9 43.6 79.1 86.2 50.8 151.9 94.4 70.4 60.1 21.5 55.3 18.8 60.0 0.0 76.5 18.4 33.8 36.2 Remaining Life Rate (%) D=(100%-B-C)/A 6.5 6.4 17.3 2.9 3.5 0.1 7.2 8.3 17.6 5.0 8.1 1.9 9.7 14.4 S.7 7.5 2.8 10.2 3.7 5.6 5.1 5.5 5.6 5.6 5.7 3.9 4.0 4.2 6.6 36.9 2.2 The figures in Columns B, C, and D are percentages of gross book cost. 12353 APPENDIX PAGE 36 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for U S WEST COMMUNICATIONS. INC. - OREGON Effective January 1, 1995 2112 2114 2115 2116 2121 2122 2123 2123 2124 2211 2212 2220 2231 2232 2232 2232 2351 2362 2411 2421 2421 2422 2422 2423 2423 2424 2424 2426 2426 2431 2441 Rate Category Description MOTOR VEHICLES SPECIAL PURPOSE VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE EQUIP COMPANY COMM EQUIP GEN'L PURPOSE COMPUTERS ANALOG SW EQUIP DIGITAL SW EQUIP OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT-DOS ciRcurr- DIGITAL CIRCUIT-ANALOG PUB TEL TERM EQUIP OTHER TERM EQUIP POLE LINES AERIAL CABLE-METALLIC AERIAL CABLE-NONMETAL UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE-METALLIC SUBMARINE CABLE-NONMETAL IB CABLE-METALLIC IB CABLE-NONMETAL AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 5.4 7.1 7.7 9.4 26.0 8.4 7.9 4.1 23 2.6 10.2 5.1 7.8 5.4 5.7 2.6 7.0 52 12.5 9.4 13.4 12.4 20.0 9.8 16.5 11.0 13.8 9.5 17.0 6.1 38.0 Future Net Salvage (%) B 15 10 10 10 1 18 9 0 9 2 8 5 -5 0 3 -5 6 0 -57 -16 -25 -6 -16 -9 -10 -4 -4 -18 -25 -52 -7 Accumulated Depreciation (%) C 43.6 53.0 53.9 49.4 27.7 65.9 42 43.5 55.9 59.5 24.1 9.1 41.4 12.3 34.4 672 69.9 65.6 622 47.3 -2.5 44.7 16.6 40.7 20.9 63.5 17.8 70.4 25.5 99.5 24.8 Remaining Life Rate (%) D=(100%-B-C)/A 7.7 52 4.7 4.3 2.7 1.9 11.0 13.8 12.1 14.8 6.7 16.8 82 162 11.0 14.5 3.4 6.6 7.6 7.3 9.5 4.9 5.0 7.0 5.4 3.7 62 5.0 5.9 8.6 2.2 The figures in Columns B, C, and D are percentages of gross book cost. 12354 APPENDIX PAGE 37 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for U S WEST COMMUNICATIONS. INC. - SOUTH DAKOTA Effective January 1, 1995 Rate Category Description 2112 MOTOR VEHICLES 2114 SPECIAL PURPOSE VEHICLES 2115 GARAGE WORK EQUIP 2116 OTHER WORK EQUIP 2121 BUILDINGS 2122 FURNITURE 2123 OFFICE EQUIP 2123 COMPANY COM V. EQUIP 2124 GENT PURPOSE COMPUTERS 2211 ANALOG SW EQUIP 2212 DIGITAL SW EQUIP 2220 OPERATOR SYSTEMS 2231 RADIO SYSTEMS 2232 CIRCUIT-DOS 2232 CIRCUIT-DIGITAL 2232 CIRCUIT-ANALOG 2351 PUB TEL TERM EQUIP 2362 OTHER TERM EQUIP 2411 POLE LINES 2421 AERIAL CABLE-METALLIC 2421 AERIAL CABLE-NONMETAL 2422 UG CABLE-METALLIC 2422 UG CABLE-NONMETAL 2423 BURIED CABLE-METALLIC 2423 BURIED CABLE-NONMETAL 2424 SUBMARINE CABLE-METALLIC 2424 SUBMARINE CABLE-NONMETAL 2426 IB CABLE-METALLIC 2426 IB CABLE-NONMETAL 2431 AERIAL WIRE 2441 CONDUIT SYSTEMS Average Remaining Life (years) A 3.3 14.0 9.8 9.1 24.0 62 6.6 2.9 2.9 3.1 9.2 5.7 5.3 6.9 6.1 2.9 Jr.5 5.3 6.8 -8.8 14.2 13.4 14.6 9.7 162 13.4 18.6 82 15.7 2.3 39.0 Future Net Salvage (%) B 15 10 0 8 10 1 0 0 5 0 0 0 -3 0 0 -3 5 --5 -100 ^30 -30 -18 -18 -10 -10 0 0 -8 -8 -37 -10 Accumulated Depreciation <%> C 59.9 C.C 6.9 50.1 19.9 97.5 69.1 76.3 55.6 59.8 32.1 78.9 70.4 27.3 44.S 612 82.3 51.9 117.0 £2.0 21.7 53.5 24.8 '56.9 22.9 41.2 19.0 74.7 14.9 100.6 30.0 Remaining Life Rate (%) D=(100%-B-C)/A 7.6 6.4 9.5 4.6 2.9 0.2 4.7 8.2 13.6 13.0 7.4 3.7 6.2 10.5 3.0 14.4 3.6 10.0 12.2 .5.5 7.6 -4.8 6.4 5.5- 5.4 4.4 4.4 4.1 5.9 15.8 2.1 The figures in Columns B, C, and D are percentages of gross book cost. 12355 APPENDIX PAGE 38 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for U S WEST COMMUNICATIONS, INC. - UTAH Effective January 1, 1995 2112 2114 2115 2116 2121 2122 2123 2123 2124 2211 2212 2220 2231 2232 2232 2232 2351 2362 2411 2421 2421 2422 2422 2423 2423 2424 2424 2426 2426 2431 2441 Rate Category Description MOTOR VEHICLES SPECIAL PURPOSE VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE EQUIP COMPANY COMM EQUIP GEN'L PURPOSE COMPUTERS ANALOG SW EQUIP DIGITAL SW EQUIP OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT-DOS CIRCUIT-DIGITAL CIRCUIT-ANALOG FtIB TEL TERM EQUIP OTHER TERM EQUIP POLE LINES AERIAL CABLE-METALLIC AERIAL CABLE-NONMETAL UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE-METALUC SUBMARINE CABLE-NONMETAL IB CABLE-METALLIC IB CABLE-NONMETAL AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 4.3 11.1 11.1 11.0 2S.O 8.2 4.4 2.5 3.0 2.4 9.4 2.6 7.4 3.7 5.8 2.7 4.4 6.2 12.7 8.4 16.0 12.7 15.4 15.4 17.0 14.2 25.0 9.1 14.9 6.0 44.0 Future Net Salvage (*) B 8 0 0 0 0 3 0 0 3 0 3 0 0 0 0 -5 5 3 -43 -31 -25 -24 -19 5 -5 0 0 -3 -3 -25 _ -i Accumulated Depreciation (%) C 52.1 34.3 3.8 26.4 25.5 61.6 44.9 77.5 482 64.3 25.6 90.6 522 582 42.5 85.4 77.8 60.3 59.2 50.4 13.1 50.7 15.4 37.7 172 8.9 0.0 56.4 11.5 62.9 202 Remaining Life Rate (%) 0=(100%-B-C)/A 9.3 5.9 8.7 6.7 2.6 4.3 12.5 9.0 16.3 14.9 7.6 3.6 6.5 11.3 9.9 7.3 3.9 5.9 6.6 9.6 7.0 5.8 6.7 4.4 52 6.4 4.0 5.1 6.1 10.4 2.0 The figures in Columns B, C, and D are percentages of gross book cost. 12356 APPENDIX PAGE 39 FEDERAL COMMUNICATIONS COMMISSION Schedule of Annual Percentages of Depreciation for U S WEST COMMUNCATIONS. INC. - WYOMING Effective January 1, 1995 2112 2114 2115 2116 2121 2122 2123 2123 2124 2211 2212 2215 2220 2231 2232 2232 2232 2351 2362 2411 2421 2421 2422 2422 2423 2423 2424 2424 2426 2426 2431 2441 Rate Category Description MOTOR VEHICLES SPECIAL PURPOSE VEHICLES GARAGE WORK EQUIP OTHER WORK EQUIP BUILDINGS FURNITURE OFFICE EQUIP COMPANY COMM EQUIP GENT PURPOSE COMPUTERS ANALOG SW EQUIP DIGITAL SW EQUIP STEP BY STEP SW EQUIP OPERATOR SYSTEMS RADIO SYSTEMS CIRCUIT-DOS CIRCUIT-DIGITAL CIRCUIT-ANALOG PUB TEL TERM EQUIP OTHER rERVt EQUiP POLE LINES AERIAL CABLE-METALLIC AERIAL CABLE-NONMETAL UG CABLE-METALLIC UG CABLE-NONMETAL BURIED CABLE-METALLIC BURIED CABLE-NONMETAL SUBMARINE CABLE-METALLIC SUBMARINE CABLE-NONMETAL IB CABLE-METALLIC IB CABLE-NONMETAL AERIAL WIRE CONDUIT SYSTEMS Average Remaining Life (years) A 3.1 10.4 11.5 10.8 24.0 7.6 5.6 2.5 3.0 0.5 10.0 8.0 7.0 4.3 5.9 3.5 2.0 4.6 11.4 19.6 14.6 12.1 16.4 9.1 16.9 13.9 25.0 8.3 16.8 4.0 42.0 Future Net Salvage (%) B 8 0 0 1 -9 0 0 -5 4 3 3 -3 0 -5 0 2 -3 5 3 -79 -41 -24 -30 -14 -4 -4 0 0 -5 -5 -55 -7 Accumulated Depreciation (%) C 772 34.6 -402 25.6 33.8 99.8 36.1 80.4 402 952 17.0 103.0 0.0 49.6 100.0 39.3 63.6 94.4 7i.8 -91,3 51.7 10.9 44.6 21.4 41.7 16.1 69.9 0.0 60.4 -128.4 76.7 232 Remaining Life Rate (*) D=(100%-B-C)/A 4.8 6.3 122 6.8 3.1 5.0 11.4 9.8 18.6 3.6 8.0 ___ 12.5 7.9 5.0 9.9 11.3 0.3 5.5 7.7 8.4 7.7 7.1 5.6 6.8 5.2 2.2 4.0 5.4 13.9 19.6 2.0 The figures in Columns B, C, and D are percentages of gross book cost 12357 SEPARA STATEMENT OF COMMISSIONER RACHELLE B. CHONG Re: . The Prescription of Revised Percentages of Depreciation pursuant to the Communications Act of 1934, as amended, for Alascom et. al - Memorandum Opinion and Order For over half a century, the prescription of depreciation rates for communications common carriers was considered essential to ensure just and reasonable prices for interstate telephone services. Under traditional forms of cost-of-service regulation, carriers recover their annual operating expenses through rates charged to consumers. Because depreciation is the largest operating expense in the capital-intensive telecommunications industry, involving billions of dollars annually, it has a profound effect on consumer prices in a cost- of-service regulatory environment.1 In 1934, Congress recognized this fact when it directed the FCC to prescribe depreciation rates for carriers.2 Times and circumstances have changed, however. The advent of price cap regulation broke the direct link between regulated prices and costs that exists under cost-of- service regulation. At the FCC, the implementation of price caps in 1991 for the largest local exchange carriers ("LECs") dramatically diminished the significance of depreciation for interstate ratemaking purposes. Under the LEG price cap rules, depreciation expense impacts interstate access rates only in limited circumstances. For example, if a carrier exceeds a specific upper bound on reported earnings, depreciation expense in a particular year can affect the amount that' the carrier must return to consumers under the Commission's "sharing" mechanism. In addition, if a carrier's earnings fall below a specific lower bound, depreciation expense in a particular year can affect the amount that the carrier is entitled to raise rates in the next period pursuant to the Commission's "low-end adjustment" procedure. So long as earnings remain within these upper and lower earnings bounds, however, depreciation expense does not impact rates for interstate access services charged by those carriers subject to price cap regulation. 1 For example, in 1994, the total annual depreciation expense for all reporting local exchange carriers was $19 billion. Statistics of Communications Common Carriers, Federal Communications Commission, at 33 (1994/1995 ed.). 2 See 47 U.S.C. § 220(b). Although current law continues to mandate depreciation prescriptions by the FCC, legislation pending before the 104th Congress would amend Section 220(b) of the Communications Act to afford the agency discretion to prescribe depreciation rates as it determines to be appropriate. 12358 Further changes to our pricing rules in the future may render depreciation prescriptions at the federal level virtually obsolete. I have expressed my desire on several occasions to eliminate sharing - a vestige of cost-of-service regulation - and move to a system of "pure" price regulation.3 The Commission took a step in this direction last year when it revised its price cap rules on an interim basis. The interim rules do not require sharing for carriers that elect the most challenging of three available productivity factors.4 And, significantly, the Commission has established a long term goal of eliminating sharing entirely from price cap regulation.5 Should the Commission ultimately adopt such a regime, and should Congress amend Section 220(b) of the Communications Act, the agency should no longer need to prescribe depreciation rates. We are entering a new age of competition in local exchange and exchange access markets. As competition builds and our system of price cap regulation for the LECs evolves, it may be a worthy public interest goal to end depreciation prescriptions at the FCC as we close out the twentieth century. It is my hope that in the relatively near future, the rise of competition will enable us to end this resource-intensive regulatory activity and still faithfully discharge our obligation under the Communications Act to -ensure reasonable-rates for consumers. 3 See Price Cap Performance Review for Local Exchange Carriers, CC Docket No. 94-1, First Report and Order, 10 FCC Red 8961, at 9252 (1995) (Separate Statement of Commissioner Rachelle B. Chong); "Rudolph's Roadmap to More Competition and Less Regulation," Remarks of Commissioner Rachelle B. Chong before the Practising Law Institute and the Federal Communications Bar Association, 13th Annual Institute on Telecommunications Policy and Regulation, Washington, D.C., December 14, 1995. 4 First Report and Order, 10 FCC Red at 9054-58. 5 Id., 10 FCC Red at 9047. See also Price Cap Performance Review for Local Exchange Carriers, CC Docket No. 94-1, Fourth Further Notice of Proposed Rulemaking, FCC 95-406 (released Sept. 27, 1995) at paras. 114-16. 12359