OAR 860-034-0740
Allocation of Costs by Type 2 Cooperatives


(1)

As used in this rule:

(a)

“Affiliate transaction” means a transfer of assets, a sale of supplies, or a sale of services between accounts for services for which a joint rate is charged or for through services offered by a Type 2 cooperative and accounts for nonregulated activities of a separate entity that is either an affiliated interest or another company in which the Type 2 cooperative owns a controlling interest;

(b)

“Asset” means any tangible or intangible property of a Type 2 cooperative or other right, entitlement, business opportunity, or other thing of value to which a Type 2 cooperative holds claim;

(c)

“Cost” means fully distributed cost, including all overheads and rate of return as defined in section (1)(h) of this rule;

(d)

“Fair market value” means the potential sales price that could be obtained by selling an asset in an arm’s-length transaction to a nonaffiliated entity, as determined by commonly accepted valuation principles;

(e)

“Market rate” means the lowest price that is available from nonaffiliated suppliers for comparable services or supplies;

(f)

“Net book value” means original cost less accumulated depreciation;

(g)

“Nonregulated service” means a service that is neither a through service nor a service for which a joint rate is charged, as defined by OAR 860-034-0015 (Through Service); and

(h)

“Rate of return” means the rate or return established by the Commission for the calculation of a rate for a through service or for which a joint rate is charged.

(2)

A Type 2 cooperative that provides both regulated and nonregulated intrastate service shall:

(a)

Allocate intrastate investments, expenses, and revenues between regulated activities and nonregulated activities according to principles, procedures, and accounting requirements, which the Federal Communications Commission (FCC) adopted December 23, 1986, and amended on reconsideration September 17, 1987, in CC Docket No. 86-111, except as otherwise provided in this rule.

(b)

Part 64, Subpart I, Allocation of Costs, adopted by the Federal Communications Commission on October 11, 2001, is hereby adopted and prescribed.

(3)

For intrastate purposes, FCC rules governing affiliate transactions (Section 32.27) are replaced as follows:

(a)

When an asset is transferred to regulated accounts from nonregulated accounts, the transfer shall be recorded in regulated accounts at the lower of net book value or fair market value;

(b)

When an asset is transferred from regulated accounts to nonregulated accounts, the proceeds from the transfer shall be recorded in regulated accounts at the higher of net book value or fair market value;

(c)

When an asset is transferred from a regulated account to a nonregulated account at a fair market value that is greater than net book value, the difference shall be considered a gain to the regulated activity. The Type 2 cooperative shall record the gain in a manner that will enable the Commission to determine the proper disposition of the gain in a subsequent rate proceeding;

(d)

When services or supplies are sold by a regulated activity to a nonregulated activity, sales shall be recorded in regulated revenue accounts at the Type 2 cooperative’s cost; and

(e)

When services or supplies are sold to a regulated activity by a nonregulated activity, sales shall be recorded in regulated accounts at the nonregulated activity’s cost or the market rate, whichever is lower. The nonregulated activity’s cost shall be calculated using the Type 2 cooperative’s most recently authorized rate of return.

(f)

Income taxes shall be allocated among the regulated activities of the Type 2 cooperative, its nonregulated divisions, and members of an affiliated group. When income taxes are determined on a consolidated basis, the Type 2 cooperative shall record income tax expense as if it were determined for the Type 2 cooperative separately for all time periods.

Source: Rule 860-034-0740 — Allocation of Costs by Type 2 Cooperatives, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=860-034-0740.

860‑034‑0010
Scope of the Rules
860‑034‑0015
Through Service
860‑034‑0020
Definitions for OAR 860-034-0030 through 860-034-0290
860‑034‑0030
Applications for Service from a Small Telecommunications Utility
860‑034‑0040
Information for Utility Customers and Applicants
860‑034‑0050
Multilingual Notices
860‑034‑0060
Dispute Resolution
860‑034‑0070
Designation of Third Party to Receive Notices
860‑034‑0080
Restrictions on Entering a Customer Residence
860‑034‑0090
Interruption of Utility Service
860‑034‑0095
Annual Fees Payable to the Commission by a Small Telecommunications Utility
860‑034‑0097
Estimated Annual Fees Payable to the Commission
860‑034‑0100
Temporary Utility Service
860‑034‑0110
Due and Payable Period
860‑034‑0120
Late-Payment Charge
860‑034‑0130
Adjustment of Utility Bills
860‑034‑0140
Establishing Credit for Residential Utility Service
860‑034‑0150
Payment Arrangements for Deposit and Installation Charges for Residential Utility Service
860‑034‑0160
Interest on Deposits for Residential and Nonresidential Utility Service
860‑034‑0170
Refund of Deposits for Residential and Nonresidential Utility Service
860‑034‑0180
Grounds for Disconnecting Utility Service
860‑034‑0190
Voluntary Disconnection of Utility Service
860‑034‑0200
Emergency Disconnection of Utility Service
860‑034‑0210
Disconnection of Utility Service on Weekends and Holidays
860‑034‑0220
Accounts Not Related to Residential Utility Service
860‑034‑0230
Reconnection Fee for Utility Service
860‑034‑0240
Transfer Billings
860‑034‑0250
Refusal of Utility Service
860‑034‑0260
Disconnection Procedures for Commercial and Residential Utility Customers
860‑034‑0270
Emergency Medical Certificate for Residential Utility Service
860‑034‑0275
Termination of Local Exchange Residential Service for Telecommunications Customers at Significant Risk
860‑034‑0276
Time Payment Agreements for Small Telecommunications Utilities
860‑034‑0280
Telephone Solicitation Notices by Small Telecommunications Utilities
860‑034‑0290
Customer Notification and Information Delivery Services for Small Telecommunications Utilities
860‑034‑0300
Tariffs of Small Telecommunications Utilities
860‑034‑0310
Announcement of Rate Increases by Small Telecommunications Utilities
860‑034‑0320
Notice to Interested Persons of Tariffs Filed Under ORS 759.175 by Small Telecommunications Utilities
860‑034‑0325
Requests to Abandon, Exempt from Regulation, or Price-List Regulated Telecommunications Services
860‑034‑0330
Relating to City Privilege Taxes, Fees, and Other Assessments Imposed Upon a Small Telecommunications Utility or Type 2 Cooperative
860‑034‑0340
Relating to Local Government Fees, Taxes, and Other Assessments Imposed Upon a Small Telecommunications Utility or Type 2 Cooperative
860‑034‑0350
Forced Conversion of Communication Facilities for Small Telecommunications Utilities and Type 2 Cooperatives
860‑034‑0380
Maintenance of Plant and Equipment by Small Telecommunications Utilities
860‑034‑0390
Retail Telecommunications Service Standards for Small Telecommunications Utilities
860‑034‑0392
Accounting for Directors’ Fees by Small Telecommunications Utilities
860‑034‑0393
Uniform System of Accounts for Small Telecommunications Utilities
860‑034‑0394
Allocation of Costs by Small Telecommunications Utilities
860‑034‑0395
Annual Report Requirements for Small Telecommunications Utilities
860‑034‑0396
Reporting of Affiliated Transactions by Small Telecommunications Utilities
860‑034‑0397
Use of Deferred Accounting by Small Telecommunications Utilities
860‑034‑0400
Maps and Records of Small Telecommunications Utilities and Telecommunications Cooperatives
860‑034‑0420
Location of Underground Facilities
860‑034‑0430
Construction, Safety, and Reporting Standards for Small Telecommunications Utilities and Telecommunications Cooperatives
860‑034‑0440
Applicability and Formal Requirements for Small Telecommunications Utilities and Telecommunications Cooperatives
860‑034‑0450
Applications for Approval of Contracts to Avoid or Eliminate Duplicate Utility Service for Small Telecommunications Utilities and Telecommunications Cooperatives
860‑034‑0460
Applications for Approval of Amendments to Contracts to Avoid or Eliminate Duplicate Utility Service for Small Telecommunications Utilities and Telecommunications Cooperatives
860‑034‑0470
Applications for Allocation of Exclusively Served Territory by Small Telecommunications Utilities and Telecommunications Cooperatives
860‑034‑0480
Applications for Allocation of Unserved Territory for Small Telecommunications Utilities and Telecommunications Cooperatives
860‑034‑0490
Applications to Transfer Rights to Allocated Territory for Small Telecommunications Utilities and Telecommunications Cooperatives
860‑034‑0495
Application by an Unserved Person for Service from a Small Telecommunications Utility
860‑034‑0505
Attachments to Poles and Conduits Owned by Public, Telecommunications, and Consumer-Owned Utilities
860‑034‑0580
Preservation and Destruction of Records for Small Telecommunications Utilities and Type 2 Cooperatives
860‑034‑0600
Definitions for Depreciation Guidelines for Small Telecommunications Utilities and Type 2 Cooperatives
860‑034‑0610
Revision of Depreciation Guidelines
860‑034‑0620
Filing Deadlines for a Request for an Exception by a Small Telecommunications Utility or Type 2 Cooperatives
860‑034‑0630
Information to be Included With a Request for an Exception Filed Under OAR 860-034-0620
860‑034‑0640
Review by Staff of a Request for an Exception Filed Under OAR 860-034-0620
860‑034‑0650
Petition to Open Depreciation Docket
860‑034‑0660
Review Procedure and Schedule for a Request for an Exception Filed Under OAR 860-034-0650
860‑034‑0670
Extension of Time for a Request for an Exception
860‑034‑0710
Extension of Time for a Request for an Exception Filed Under OAR 860-034-0650
860‑034‑0720
Announcement of Rate Increases for Joint Rates or Rates Charged for Through Services by Type 2 Cooperatives
860‑034‑0725
Telephone Solicitation Notices by Telecommunications Cooperatives
860‑034‑0730
Uniform System of Accounts for Type 2 Cooperatives
860‑034‑0740
Allocation of Costs by Type 2 Cooperatives
860‑034‑0750
Annual Report Requirements for Type 2 Cooperatives
Last Updated

Jun. 8, 2021

Rule 860-034-0740’s source at or​.us