Chapter 20:10:28 — TELECOMMUNICATIONS SEPARATIONS PROCEDURES

20:10:28:04. Separations procedures -- General. Separations apportion costs among categories by actual use or by direct assignment. Separations are made based on actual use, which gives consideration to relative occupancy and relative time measurements. In the development of actu…

20:10:28:05. Classification of telecommunications plant -- General. Telecommunications plant, in general, is segregated into two broad classifications as follows: (1) Interexchange, which is plant used primarily to furnish toll service, includes the following plant types: (a) Ope…

20:10:28:06. Apportionment of telecommunications plant -- General. In general, the bases for apportioning telecommunications plant used jointly for toll and other services are as follows: (1) Operator work time expressed in weighted standard work seconds is the basis for measurin…

20:10:28:07. Classification of property rented to or from affiliates. If property rented to affiliates is not material in amount, the property is included as used property of the owning company with the associated revenues and expenses treated consistently. If property rented fro…

20:10:28:08. Classification of property rented to or from nonaffiliates. Property rented to or from nonaffiliates is included as used property of the owning company with the associated revenues and expenses treated consistently. However, if the amount is material, the property in…

20:10:28:09. Costs billed to another company. Costs associated with services or plant billed to another company which have once been separated under procedures consistent with general principles in this chapter, and are thus identifiable as entirely either toll or other services …

20:10:28:10. Telecommunications property -- Procedures for assignment of property and allocation of costs. Sections 20:10:28:11 to 20:10:28:72, inclusive, contain the procedures used in the assignment of telecommunications property to categories and the apportionment of the costs…

20:10:28:100. Access expenses, account 6540 -- Included expenses -- Assignment of expenses. Account 6540, access expenses, includes access charges paid to exchange carriers for exchange access service. Intrastate expenses in this account are directly assigned to toll. Source: 19 …

20:10:28:101. Depreciation and amortization expenses, account 6560 -- Included expenses -- Separation of expenses. Account 6560, depreciation and amortization expenses, includes the depreciation expense for telecommunications plant in service and for property held for future tele…

20:10:28:102. Customer operations expenses -- Accounts. Customer operations expenses are included in marketing, account 6610, and services, account 6620. Source: 19 SDR 111, effective January 31, 1993. General Authority: SDCL 49-1-11, 49-31-5, 49-31-18. Law Implemented: SDCL 49-3…

20:10:28:103. Apportionment of marketing expenses, account 6610. Marketing expenses, account 6610, are apportioned among the operations based on an analysis of current billing for a representative period, excluding current billing on behalf of others and billing in connection wit…

20:10:28:104. Classification of services expenses, account 6620 -- Apportionment of expenses. For apportionment purposes, services expenses, account 6620, are first segregated based on an analysis of job functions into the following classifications: telephone operator services, p…

20:10:28:105. Telephone operator services -- Included expenses -- Apportionment of expenses. Telephone operator services expenses include costs incurred for operators in call completion services and number services. This includes intercept, quoting rates, directory information, t…

20:10:28:106. Published directory listing -- Included expenses -- Assignment of expenses. Published directory listing expenses include expenses for preparing or purchasing, compiling, and disseminating directory listings. Published directory expenses are assigned as follows: (1) …

20:10:28:107. All other -- Categories. For apportionment purposes, the expenses in the all other classification are divided into three categories: (1) Category 1, local business office expense; (2) Category 2, customer services expense; (3) Category 3, all other customer services…

20:10:28:108. All other, category 1 -- Local business office expense -- Subcategories. The intrastate expenses in all other, category 1, local business office expenses, except coin collection and administration, are segregated into the following subcategories based on an analysis…

20:10:28:109. End user service order processing -- Included expenses -- Subcategories -- Assignment of subcategories. End user service order processing includes expenses related to the receipt and processing of end users' orders for service and inquiries concerning service. This …

20:10:28:11. Treatment of rental plant. The treatment of rental plant is outlined in §§ 20:10:28:07 to 20:10:28:09, inclusive. If the amount of plant is material, the cost may be determined by using the general procedures for the assignment of the various kinds of property to cat…

20:10:28:110. End user payment and collection -- Included expenses -- Subcategories -- Assignment of subcategories. End user payment and collection includes expenses incurred in relation to the payment and collection of amounts billed to end users. It also includes commissions pa…

20:10:28:111. End user billing inquiry -- Included expenses -- Subcategories -- Assignment of subcategories. End user billing inquiry includes expenses related to handling end users' inquiries concerning their bills. This category does not include expenses related to the inquirie…

20:10:28:112. Intrastate interexchange carrier service order processing -- Included expenses -- Subcategories -- Assignment of subcategories. Intrastate interexchange carrier service order processing includes expenses associated with the receipt and processing of interexchange ca…

20:10:28:113. Intrastate interexchange carrier payment and collection -- Included expenses -- Subcategories -- Assignment of subcategories. Intrastate interexchange carrier payment and collection includes expenses associated with the payment and collection of interexchange carrie…

20:10:28:114. Intrastate interexchange carrier billing inquiry -- Included expenses -- Subcategories -- Assignment of subcategories. Interexchange carrier billing inquiry includes expenses related to the handling of interexchange carrier billing inquiries. Based on the relative n…

20:10:28:115. Coin collection and administration -- Included expenses -- Assignment of expenses. Repealed. Source: 19 SDR 111, effective January 31, 1993; repealed, 25 SDR 89, effective December 27, 1998.

20:10:28:116. All other, category 2 -- Customer services expenses (revenue accounting) -- Included expenses -- Classifications. The revenue accounting portion of account 6620, customer services expenses, comprises the salaries and other expenses in account 6620 directly assignabl…

20:10:28:117. Message processing -- Included expenses -- Subcategories -- Assignment of subcategories. Message processing expense includes the salary and machine expense of data processing equipment, including supervision, general accounting administrative, and miscellaneous expe…

20:10:28:118. Other billing and collecting -- Included expenses -- Segregation into services -- Assignment of service expenses. Other billing and collecting includes the salary expense, including supervision, general accounting administrative, and miscellaneous expense, associate…

20:10:28:119. Assignment of end user common line charge billing expense. No end user common line charge is assessed for intrastate toll access. All of the end user common line access charge billing expense is assigned to interstate operations. Source: 19 SDR 111, effective Januar…

20:10:28:12. Apportionment of depreciation deductible from book cost. The amount of depreciation deductible from the book cost or value is apportioned among the operations in proportion to the separation of the cost of the related plant accounts. Source: 19 SDR 111, effective Jan…

20:10:28:120. Carrier access charge billing and collecting -- Included expenses -- Apportionment of expenses. Carrier access charge billing and collecting expense classification includes the revenue accounting functions associated with the billing and collecting of access charges…

20:10:28:121. All other, category 3 -- All other customer services expenses -- Apportionment. All other, category 3, all other customer services expenses, is apportioned based on categories 1 and 2. Source: 19 SDR 111, effective January 31, 1993. General Authority: SDCL 49-1-11, …

20:10:28:122. Corporate operations expenses -- Accounts. Corporate operations expenses are included in executive and planning, account 6710, and general and administrative, account 6720. Source: 19 SDR 111, effective January 31, 1993. General Authority: SDCL 49-1-11, 49-31-5, 49-…

20:10:28:123. Executive and planning, account 6710 -- General and administrative, account 6720 -- Assignment of expenses. Executive and planning, account 6710, and general and administrative, account 6720, expenses are divided into extended area services and all other. Extended a…

20:10:28:124. Operating taxes, account 7200 -- Included taxes. Account 7200, operating expenses, includes the taxes arising from the operations of the company. Operating taxes include operating investment tax credits, operating federal income taxes, operating state and local inco…

20:10:28:125. Apportionment procedures for operating taxes. For apportionment purposes, the expenses in operating taxes, account 7200, are segregated into operating federal, state, and local income taxes and all other operating taxes. Operating federal, state, and local income ta…

20:10:28:126. Equal access -- Included expenses. For those companies that implement equal access within the state jurisdiction, equal access expenses include only initial incremental presubscription costs and other initial incremental expenditures related directly to the provisio…

20:10:28:127. Reserves and deferrals -- Accounts. For separations purposes, reserves and deferrals include the following accounts: (1) Accumulated depreciation, account 3100; (2) Accumulated depreciation, property held for future telecommunications use, account 3200; (3) Accumula…

20:10:28:128. Accumulated depreciation, account 3100 -- Separation of amounts. Amounts recorded in account 3100, accumulated depreciation, are separated based on the separation of the associated primary plant accounts or related categories, excluding amortizable assets. Source: 1…

20:10:28:129. Accumulated depreciation, property held for future telecommunications use, account 3200 -- Apportionment. Amounts recorded in account 3200, accumulated depreciation, property held for future telecommunications use, are apportioned among the operations based on the s…

20:10:28:13. General support facilities -- Account 2110 -- Included assets. The costs of the general support facilities are contained in account 2110, land and support assets. This account contains land, buildings, motor vehicles, aircraft, special purpose vehicles, garage work e…

20:10:28:130. Accumulated amortization, tangible, account 3400 -- Accumulated amortization, intangible, account 3500 -- Accumulated amortization, other, account 3600 -- Apportionment. Amounts recorded in account 3400, accumulated amortization, tangible; account 3500, accumulated …

20:10:28:131. Net current deferred operating income taxes, account 4100 -- Net noncurrent deferred operating income taxes, account 4340 -- Apportionment. Amounts recorded in account 4100, net current deferred operating income taxes, and account 4340, net noncurrent deferred opera…

20:10:28:14. Accounts for the big three expenses -- Plant-specific expenses, plant-nonspecific expenses, and customer operations expenses. The costs of the general support facilities of class A companies are apportioned among their operations based on the separation of the costs …

20:10:28:15. Apportionment of cost of general support facilities for class B companies. The costs of the general support facilities for class B companies are apportioned among their operations based on the separation of the combined costs of central office equipment, information …

20:10:28:16. Central office equipment accounts. The costs of central office equipment are carried in the following accounts: (1) Central office switching, account 2210: (a) Analog electronic switching, account 2211; (b) Digital electronic switching, account 2212; (c) Electro-mech…

20:10:28:17. Assignment of central office equipment to categories. In the separation of the cost of central office equipment among the operations, central office equipment is first assigned to categories. The basic method of making this assignment is the identification of the equ…

20:10:28:18. Distribution of cost of common equipment not assigned to a specific category -- Weighting factor. The cost of common equipment not assigned to a specific category is distributed among the categories in proportion to the cost of equipment directly assigned to categori…