Nevada Administrative Code
Chapter 704 - Regulation of Public Utilities Generally
ADDITIONAL REGULATIONS CONCERNING CERTAIN TELECOMMUNICATION SERVICES
Determination of Wholesale Rates by Incumbent Local Exchange Carriers
Section 704.75996 - Requirements for avoided cost study

Universal Citation: NV Admin Code 704.75996

Current through September 16, 2024

1. An avoided cost study required pursuant to NAC 704.759955 must:

(a) Use the most current data pertaining to the incumbent local exchange carrier that is available, as reported by the Automated Reporting Management Information System (ARMIS) of the Federal Communications Commission in report number 43-03.

(b) Be conducted in accordance with the Uniform System of Accounts for Class A and B telephone companies ("USOA accounts") that is described in 47 C.F.R. Part 32.

(c) Exclude expenses associated with telecommunications services that are not offered for resale.

(d) Be based upon avoided retail costs.

(e) Include as avoided direct costs:
(1) A portion of the costs recorded in USOA account 6611 (product management); and

(2) The vast majority of costs recorded in USOA accounts 6612 (sales), 6613 (product advertising) and 6623 (customer services).

(f) Include as avoided indirect costs a portion of the costs recorded in:
(1) USOA accounts 6121 to 6124, inclusive (general support expenses);

(2) USOA accounts 6711, 6712 and 6721 to 6728, inclusive (corporate operations expenses); and

(3) USOA account 5301 (uncollectible revenue-telecommunications).

2. As used in this section:

(a) "Avoided direct costs" means costs that an incumbent local exchange carrier avoids directly by providing services at wholesale rather than at retail.

(b) "Avoided indirect costs" means costs that an incumbent local exchange carrier avoids indirectly by providing services at wholesale rather than at retail.

Added to NAC by Pub. Utilities Comm'n by R010-98, eff. 6-26-98

NRS 703.025, 704.210

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