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 APPENDIX  D 
 DESCRIPTION  OF  METHODOLOGY  FOR  ESTIMATING  EXPENSES 
 1.  Data  Sources  used  in  Regression  Analysis.  The  use  of  multiple  variables  in  the  estimation  process  required  that  various  data  sources  be  used  to  determine  the  common  support 
 service  expense  model  inputs.  Because  the  reporting  requirements  and  number  of  company  study  areas  were  different  among  the  reports  used,  it  was  necessary  to  reconcile  the  data  for  1998 
 expenses,  access  lines,  and  dial  equipment  minutes,  as  described  below. 
 1998  Expenses  Data  Source:  ARMIS,  43-  03  Report,  "Total  Regulated"  Column. 


 Study  Areas  (SAs)  reconciled:  Total  SAs  from  ARMIS  43-  03  Report:  125 
 Less: 
 SAs  combined  to  agree  with  access  line  data  in  ARMIS  43-  08:  (8)  Study  Area(  s)  Combined  with 
 MSID  PNID  COCA  GTCA 
 COTX  GTTX  PRCC  PRSA 
 COIL  GTIL  COIN  GTIN 
 COMO  GTMO  CONC  GTNC 


 SAs  removed  (not  in  NECA  Tier  I  reporting):  (1)  GTGO 
 SAs  removed  (certified  rural):  (36)  (GTAR,  COAZ,  GNCA,  ALGC,  COIA,  COSI,  GTIA, 
 GTID,  GLIL,  GLIN,  UTIN,  COKY,  GLMI,  COCM,  COEM,  UTMO,  ALNC,  GTNE,  UTNJ,  CONM, 
 GTNM,  CONV,  CTRH,  CTUP,  CTWC,  ALWR,  UTNW,  ALPA,  COPA,  COQS,  UTPA,  COSC,  UTTX, 
 COVA,  GTVA,  COWA) 
 SAs  used  in  analysis:  80 
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 Access  Lines  Data  Source:  ARMIS,  43-  08  Report,  Table  III, 
 Column  (dj)  "Total  Switched  Access  Lines",  and  Column  (dm)  "Total  Access  Lines  (Switched  and  Special)" 
 Study  Areas  (SAs)  reconciled:  Total  SAs  from  ARMIS  43-  08  Report::  116 
 Less: 
 SAs  combined  to  agree  with  ARMIS  expense  data  and  NECA  usage  data:  (7) 
 Study  Area(  s)  Combined  with  NYNY  (Conn)  NYNY  (New  York) 
 CBTC  (IN  &  KY)  CBTC  (Ohio)  LTNE  (IA  &  KS)  LTNE  (Nebraska) 
 UTIM  (VA)  UTIM  (Tenn)  PRCC  PRPR 


 SAs  removed  (not  in  NECA  Tier  I  reporting):  (2)  (COTM,  CWTC) 
 SAs  removed  (certified  rural)  (27)  [GTSW(  Ar  &  Nm),  GTGC(  Az  &  Nv),  GTNW  (Ca  &  Id), 
 ALGC,  GTMD(  Ia  &  Ne),  GTSO(  Il  &  Va),  COSO  (Mi  &  In),  UTIN,  UTMO(  Ia,  Ks  &  Mo),  ALNC,  UTNJ,  COWW,  CTNY, 
 ALWR,  UTNW(  Or  &Wa),  ALPA,  UTPA,  UTTX] 
 SAs  used  in  analysis:  80 
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 Dial  Equipment  Minutes  Data  Source:  NECA  filed  statistics  on  network  usage  by  carrier 
 Study  Areas  reconciled:  Total  SAs  per  NECA  data  filing:  131 
 Less: 
 SAs  combined  to  agree  with  access  line  data:  (10)  Study  Area(  s)  Combined  with: 
 COCA  GTCA  MSID  PNID 
 CBTC  (KY)  CBTC  (Ohio)  PRCC  PRPR 
 COTX  GTTX  COIL  GTIL 
 COIN  GTIN  COMO  GTMO 
 CONC  GTNC  UTIN(  Va)  UTIN(  Tn) 


 SAs  removed  (not  in  ARMIS  reporting):  (4)  (GA  Alltel  Telecom,  Micronesian  Tel,  GTE  No.  Inc.  -  MN, 
 Citizens  Utilities  DBA  Citizens  of  Tennessee) 
 SAs  removed  (certified  rural)  (37)  [GTSW(  Ar),  COAZ,  GNCA,  COIA,  COSI,  GTIA, 
 GTNW  (Id),  ALGC,  GTSO(  Il  &  Va),  COKY,  COCM,  COEM,  COSO  (Mi  &  In),  UTIN,  UTMO,  GTNE, 
 CONM,  GTNM,  CONV,  CTUP,  CTWC,  CTRH,  ALNC,  UTNJ,  ALWR,  ALPA,  COPA,  COQS,  UTPA,  COSC, 
 UTNW(  Or  &Wa),  UTTX,  COVA,  COWA] 
 SAs  used  in  analysis:  80 
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