The first step in apportioning the cost of exchange line cable and wire facilities among the operations is the determination of an average cost per working loop. The average cost per working loop is determined by dividing the total cost of exchange line cable and wire facilities, category 1, by the sum of the working loops described in the following subcategories:

1. (1) Subcategory 1.1 - intrastate private line and state WATS lines, including all private lines and WATS lines carrying exclusively intrastate traffic as well as private lines and WATS lines carrying both intrastate and interstate traffic if the interstate traffic on the line involved constitutes ten percent or less of the total traffic on the line;

2. (2) Subcategory 1.3 - subscriber or common lines that are jointly used for local exchange service and exchange access for intrastate and interstate interexchange services.

   The intrastate costs assigned to subcategory 1.1 are directly assigned. Twenty-five percent of total subcategory 1.3 investment is assigned to intrastate toll.

Source: 19 SDR 111, effective January 31, 1993.

General Authority: SDCL 49-1-11 , 49-31-5 , 49-31-18 .

Law Implemented: SDCL 49-31-18 .