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Title 3 . Commerce, Community, and Economic Development
Chapter 48 . Telecommunications
Section 750. Calculation of TIER

3 AAC 48.750. Calculation of TIER

A cooperative's TIER is calculated for the most recent 12-month period, based on the information filed in accordance with 3 AAC 48.720 and on the following principles:

(1) the annualized long-term interest expense for the period must be used;

(2) the actual operating expenses for the period must be normalized to remove nonrecurring items and to adjust for items normally amortized for ratemaking purposes, and may also be normalized to reflect pro forma adjustments for known and measurable changes that are more than likely to continue through the period in which the rates will be in effect;

(3) interest income must be included in the determination of TIER to the extent that interest income exceeds short-term interest expense.

History: Eff. 1/1/87, Register 100

Authority: AS 42.05.141

AS 42.05.151

AS 42.05.381

AS 42.05.411

AS 42.05.421

AS 42.05.431

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Last modified 7/05/2006