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e-CFR data is current as of February 25, 2021

Title 47Chapter ISubchapter BPart 64 → Subpart J

Title 47: Telecommunication

Subpart J—Recovery of Investments and Expenses in Regulated Interstate Rates

§64.1000   Scope.
§64.1001   Purpose.
§64.1002   Investments and expenses.

Source: 83 FR 18965, May 1, 2018, unless otherwise noted.

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§64.1000   Scope.

This subpart is applicable only to rate-of-return carriers as defined in §54.5 of this chapter receiving Connect America Fund Broadband Loop Support as described in §54.901 of this chapter.

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§64.1001   Purpose.

This subpart is intended to ensure that only used and useful investments and expenses are recovered through regulated interstate rates pursuant to section 201(b) of the Communications Act as amended (the Act), 47 U.S.C. 201(b).

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§64.1002   Investments and expenses.

(a) Investment and expenses not used and useful in the ordinary course. The following investments and expenses are presumed not used and useful (and thus unreasonable):

(1) Personal expenses, including but not limited to personal expenses for food and beverages, housing, such as rent or mortgages, vehicles for personal use, and personal travel;

(2) Tangible property not logically related or necessary to offering voice or broadband services;

(3) Political contributions;

(4) Membership fees and dues in social, service and recreational, or athletic clubs or organizations;

(5) Penalties or fines for statutory or regulatory violations; and

(6) Penalties or fees for late payments on debt, loans, or other payments.

(b) Non-customary investments and expenses. Unless customary for similarly situated companies, the following investments and expenses are presumed not used and useful (and thus unreasonable):

(1) Personal benefits, such as gifts, housing allowances, and childcare, that are not part of taxable compensation;

(2) Artwork and other objects that possess aesthetic value that are displayed in the workplace;

(3) Aircraft, watercraft, and off-road vehicles used for work and work-related purposes;

(4) Cafeterias and dining facilities;

(5) Charitable donations;

(6) Entertainment;

(7) Food and beverage expenses for work and work-related travel;

(8) Membership fees and dues associated with professional organizations;

(9) Scholarships; and

(10) Sponsorships of conferences or community events.

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