§ 54.1302   Calculation of incumbent local exchange carrier portion of
nationwide loop cost expense adjustment for rate-of-return carriers.

   (a) Beginning January 1, 2013, and each calendar year thereafter, the total
   annual  amount  of the incumbent local exchange carrier portion of the
   nationwide loop cost expense adjustment shall not exceed the amount for the
   immediately preceding calendar year, multiplied times one plus the Rural
   Growth Factor calculated pursuant to § 54.1303.

   (b)  The  annual rural incumbent local exchange carrier portion of the
   nationwide loop cost expense adjustment shall be reduced to reflect the
   transfer of rural incumbent local exchange carrier access lines that are
   eligible for expense adjustments pursuant to § 54.1310. The reduction shall
   equal  the  amount of the § 54.1310 expense adjustment available to the
   transferred access lines at the time of the transfer and shall be effective
   in the next calendar quarter after the access lines are transferred.

   (c)  Safety  net additive support calculated pursuant to § 54.1304, and
   transferred high-cost support and safety valve support calculated pursuant
   to § 54.305 of this part shall not be included in the rural incumbent local
   exchange  carrier  portion  of the annual nationwide loop cost expense
   adjustment.

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