---
kind: "section"
citation: "47 C.F.R. § 65.300"
title: "47"
number: "65.300"
heading: "Calculations of the components and weights of the cost of capital."
url: "https://uscodex.org/cfr/47/65.300"
---

# §65.300. Calculations of the components and weights of the cost of capital.

- (a) [Sections 65.301 through 65.303](/cfr/47/65.301..65.303.md) specify the calculations that are to be performed in computing cost of debt, cost of preferred stock, and financial structure weights for prescription proceedings. The calculations shall determine, where applicable, a composite cost of debt, a composite cost of preferred stock, and a composite financial structure for all local exchange carriers with annual revenues equal to or above the indexed revenue threshold as defined in [§ 32.9000](/cfr/47/32.9000.md). The calculations shall be based on data reported to the Commission in FCC Report 43-02. (See [47 CFR 43.21](/cfr/47/43.21.md)). The results of the calculations shall be used in the represcription proceeding to which they relate unless the record in that proceeding shows that their use would be unreasonable.
- (b) Excluded from cost of capital calculations made pursuant to § 65.300 shall be those sources of financing that are not investor supplied, or that are otherwise subtracted from a carrier's rate base pursuant to Commission orders governing the calculation of net rate base amounts in tariff filings that are made pursuant to section 203 of the Communications Act of 1934, [47 U.S.C. 203](/usc/47/203.md), or that were treated as “zero cost” sources of financing in [section 450](/cfr/47/450.md) and [subpart G](/cfr/47/subpartG.md) of this part 65. Specifically excluded are: accounts payable, accrued taxes, accrued interest, dividends payable, deferred credits and operating reserves, deferred taxes and deferred tax credits.

## Notes

### Amendments

[60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]

### Authority

Authority: 47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220, 254, 303(r), 403, and 1302 unless otherwise noted.

### Amendments

[60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]