Utah Admin. Code 746-8-200

Current through Bulletin 2024-12, June 15, 2024

Section R746-8-200 - Definitions

The following definitions apply to this rule:

(1) "Access line" is as defined at Subsection 54-8b-2(1), and is used in this rule, Rule R746-8, to the extent consistent with federal law.

(a) In applying the statutory definition of "access line," the term "connection" is as defined at Subsection 54-8b-15(1) and is used in this rule, Rule R746-8, to the extent consistent with federal law.

(b) Access lines and connections are referred to jointly as "access line" or "access lines."

(2) "Affordable base rate" or "ABR" means the monthly retail rate that a rate-of-return regulated provider is required to charge on a per access line basis to receive ongoing disbursements from the UUSF.

(a) "ABR" may include, if itemized in the provider's Commission-approved tariff:

(i) the applicable UUSF surcharge;

(ii) mandatory extended area service fees; or

(iii) state subscriber line fees.

(b) "ABR" does not include:

(i) municipal franchise fees;

(ii) taxes; or

(iii) any incidental surcharges other than those identified in Subsection R746-8-200(2)(b):

(A) included in a Commission-approved tariff; or

(B) authorized under these rules.

(3) "Average remaining life" used in a group depreciation method, means the average of the future life expectancy of the various items in an asset group. Average remaining life is based upon estimates that require periodic review to ensure reasonableness.

(4) "Broadband internet access service" is as defined at Subsection 54-8b-15(1).

(5) "Carrier of last resort" is as defined at Subsection 54-8b-15(1).

(6) "Depreciation" means the gradual conversion of the cost of a tangible capital or fixed asset into an operational expense over the asset's estimated useful life to reflect the reduction in the book value of the asset over time due to use, wear and tear, or obsolescence.

(7) "Designated support area" means the geographic area used to determine a provider's UUSF support distribution, including, at a minimum, the provider's entire certificated service territory located in Utah.

(8) "Eligible telecommunications carrier" or "ETC" means a provider that, if seeking to participate in the state Lifeline program:

(a) is designated as an eligible telecommunications carrier by the Commission in accordance with 47 U.S.C. Section 214(e); or

(b) is designated by the FCC as a Lifeline Broadband Provider .

(9) "Facilities-based provider" means a provider that uses:

(a) its own facilities;

(b) essential facilities or unbundled network elements obtained from another provider; or

(c) a combination of its own facilities and essential facilities or unbundled network elements obtained from another provider.

(10) "FCC" means the Federal Communications Commission.

(11) "FCC adjusted depreciation rate" means a prescribed depreciation rate that has been adjusted by application of the FCC adjustment formula.

(12) "FCC adjustment formula" means the following formula promulgated by the FCC to be applied periodically to groups of assets in a group asset depreciation method to ensure that the average remaining life and future net salvage value estimates are reasonable and result in the depreciation of a provider's investments on a straight-line basis over the life of the associated plant:

FCC adjusted depreciation rate = 100% - Accumulated Depreciation% - Future Net Salvage%

Average Remaining Life

(13) "FCC approved depreciation method" or "depreciation method allowed by the FCC" means a method of asset depletion for accounting purposes that is approved or permitted by the FCC.

(14) "Future net salvage value" means the estimated gross salvage of the plant less any estimated cost of removal. Future net salvage value is based upon estimates that require periodic review to ensure reasonableness. Future net salvage value may be positive or negative depending on the gross salvage value and the cost of removal.

(15) "Group asset depreciation method" means the depreciation accounting method established in 47 CFR, Subsection 32.2000(g)(1)(i). Group asset depreciation allows the accumulation of multiple similar fixed asset units into a group. The group is treated as a single asset with the aggregate in-service cost base used for depreciation calculations.

(16) "Lifeline subscriber" means an individual who qualifies for state subsidization of an access line through participation in a program for low-income individuals that is recognized by the FCC.

(17) "Non-rate-of-return regulated" is as defined at Subsection 54-8b-15(1).

(18) "Prescribed depreciation rate" means the most recent depreciation rate set by the Commission for the provider.

(19) "Provider" means a carrier that provides access lines or functionally equivalent connections.

(20) "Rate-of-return regulated" is as defined at Subsection 54-8b-15(1).

(21) "Wholesale broadband internet access service" is as defined at Subsection 54-8b-15(1).

Utah Admin. Code R746-8-200

Adopted by Utah State Bulletin Number 2018-6, effective 2/21/2018

Amended by Utah State Bulletin Number 2018-14, effective 6/21/2018

Amended by Utah State Bulletin Number 2019-2, effective 12/24/2018

Amended by Utah State Bulletin Number 2022-02, effective 1/1/2022