Sec. 661.4. Regulated accounts

(a) In the context of this system of accounts, the regulated accounts shall be interpreted to include the investments, revenues and expenses associated with those telecommunications products and services to which the tariff filing requirements contained in this commission's rules, as amended, are applied, except as may be otherwise provided by the commission. Regulated telecommunications products and services are thereby fully subject to the accounting requirements as specified in this commission's rules, as amended, and as detailed in this system of accounts.

(b) In addition to those amounts considered to be regulated by the provisions of subdivision (a) of this section, those telecommunications products and services to which the tariff filing requirements of other jurisdictions are applied shall be accounted for as regulated, except where such treatment is proscribed or otherwise excluded from the requirements pertaining to regulated telecommunications products and services by this commission.

(c) In the application of the detailed accounting requirements contained in this system of accounts when a regulated activity involves the common or joint use of assets and resources in the provision of regulated or nonregulated products and services, companies shall account for these activities within the accounts prescribed in this system for telecommunications company operations. Assets and expenses shall be subdivided in subsidiary records among amounts solely assignable to nonregulated activities, amounts solely assignable to regulated activities, and amounts related to assets used and expenses incurred jointly or in common, which will be allocated between regulated and nonregulated activities. Companies shall submit reports identifying regulated and nonregulated amounts in the manner and at the times prescribed by this commission. Nonregulated revenue items not qualifying for incidental treatment, as provided in section 665.12 of this Title, shall be recorded in account 5280, Nonregulated Operating Revenue.

(d) Other income items which are incidental to the provision of regulated products and services shall be accounted for as regulated activities.

(e) All costs and revenues related to the offering of regulated products and services which result from arrangements for joint participation or apportionment between two or more telecommunications companies (e.g., joint operating agreements, settlement agreements, cost-pooling agreements) shall be recorded within the detailed regulated accounts. Under joint operating agreements, the creditor will initially charge the entire expenses to the appropriate primary accounts. The proportion of such expenses borne by the debtor shall be credited by the creditor and charged by the debtor to the account initially charged. Any allowances for return on property used will be accounted for as provided in account 5240, Rent Revenue.

(f) All items of nonregulated revenue, investment and expense that are not properly includable in the detailed, regulated accounts prescribed in this system of accounts, as determined by subdivisions (a) through (e) of this section, shall be accounted for and included in reports to this commission as specified in section 661.14 of this Part.