WAC 480-120-359   Companies not classified as competitive.  (1)(a) For accounting purposes, each company not classified as competitive must use the Uniform System of Accounts (USOA) for Class A and Class B Telephone Companies published by the Federal Communications Commission (FCC) and designated as Title 47, Code of Federal Regulations, Part 32 (47 CFR 32, or Part 32). The effective date for Part 32 is stated in WAC 480-120-999 (Adoption by reference). Each company not classified as competitive wishing to adopt changes to the USOA made by the FCC after the date specified in WAC 480-120-999, must petition for and receive commission approval. The petition must include the effect of each change for each account and subaccount on an annual basis for the most recent calendar year ending December 31. If the petition is complete and accurate the commission may choose to grant such approval through its consent agenda.

     (b) Class B companies may use Class A accounting, but Class A companies must not use Class B accounting.

     (2) The commission modifies Part 32 as follows:

     (a) Any reference in Part 32 to "Commission," "Federal Communications Commission," or "Common Carrier Bureau" means the Washington utilities and transportation commission.

     (b) Each company not classified as competitive must keep subsidiary records to reflect Washington intrastate differences when the commission imposes accounting or ratemaking treatment different from the accounting methods required in subsection (2) of this section. Each company not classified as competitive must maintain subsidiary accounting records for:

     (i) Residential basic service revenues;

     (ii) Business basic service revenues;

     (iii) Access revenues for each universal service rate element;

     (iv) Special access revenues; and

     (v) Switched access revenues.

     (c) Part 32 section 24, compensated absences, is supplemented as follows:

     (i) Each company not classified as competitive must record a liability and charge the appropriate expense accounts for sick leave in the year in which the employees use the sick leave.

     (ii) Each company not classified as competitive must keep records for:

     (A) Compensated absences that are actually paid; and

     (B) Compensated absences that are deductible for federal income tax purposes.

     (d) Each company not classified as competitive that has multistate operations must keep accounting records that provide Washington results of operations. The methods used to determine Washington results of operations must be acceptable to the commission.

     (e) Part 32 section 32.11(a) is replaced by WAC 480-120-034 (Classification of local exchange companies as Class A or Class B).

     (f) Part 32 section 32.11 (d) and (e) are replaced by WAC 480-120-034.

     (g) Any reference in Part 32 to "Class A" or "Class B" means the classification as set out in WAC 480-120-034.

     (3) The commission does not require Part 32 section 32.2000 (b)(4). This rule does not supersede any accounting requirements specified in a commission order, nor will it be construed to limit the commission's ability to request additional information on a company specific basis. This rule does not dictate intrastate ratemaking.



[Statutory Authority: RCW 80.01.040 and 80.04.160. 05-03-031 (Docket No. UT 040015, General Order No. R-516), § 480-120-359, filed 1/10/05, effective 2/10/05.]