FCC Allows Central Arkansas to Include Benefit Costs in Rate Base


The FCC’s Wireline Competition Bureau (Bureau) has granted a request by Central Arkansas Telephone Cooperative Inc., (Central Arkansas) to include in its rate base the interstate portion of prepaid postretirement health care and life insurance benefits recorded in Account 1410 (other noncurrent assets).  Pursuant to the FCC’s rules, noncurrent assets recorded in Account 1410 may be included in a carrier’s rate base when the carrier makes a showing that those assets are used-and-useful in the provision of telecommunications services and specifically obtains FCC approval for inclusion.  The Bureau determined that Central Arkansas’ request meets the used-and-useful standard because the costs associated with the prepaid benefits will reduce future expenses, thus benefiting Central Arkansas’ ratepayers.

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