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HomeMy WebLinkAbout2007Annual Report.pdfl_~ ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING DECEMBER 31, 2007 r"'.f' t""" t,-/f:2 Exact name of utility: Albion Telephone Company, Inc. Address of principal office: 225 West North Street. P.O. Box 98 Albion, ID 83311 Telephone Number (Area Code_208 673-5335 Cities or towns served: Albion, Almo, Elba, Holbrook, Malta, Raft River, Malad, Mackay, Moore, Arco, Howe; Idaho: Yost; Utah Name and title of officer having custody of the general corporate books of account: ODeen K. Redman, President Address of office where corporate books are kept and phone number: 225 West North Street. P.O. Box 98 Albion, ID 83311 Organized under the laws of the State of: Idaho Date of organization: 1929 - Incorporated September 11, 1953 Form of organization (proprietorship, association, corporation): Corporation If a Subchapter S Corporation, please specify: We are a Subchapter S Corporation Name and address of controlling company, if any: COMPANY INFORMATION.Áß-r l '"1" 'I ¡-¡:UJn ;)2: 51 :f;d-k, j- UljLiC ¡ ¡Tit i flt~ ('OMj;USSICi. " Names of affiliated companies. Give address and description of business: OFFICERS Report below the title, name and office address of each general officer of the utility at the end of the year. If there were any changes during the year, show the name, title, and address of the previous officer and the date of change. Title Name Address President ODeen K. Redman P.O. Box 22 Albion, ID 83311 Vice-President Richard L. Redman P.O. Box 14 Albion, ID 83311 Secretary Darla Redman P.O. Box 22 Albion, ID 83311 Treasurer Barry Redman 266 S. 950 E.Declo, ID 83323 Rev 3/02 Page 1 DIRECTORS List the name of each person who was a member of the Board of Directors at any given time during the year: (Fees related to meetings only.) Name and Address ODeen K. Redman Richard L. Redman Darla Redman Barry Redman Term Expired or Current Term Wil Expire Meetings Attended This year Fees Paid During Year NA NA NA NA 1 1 1 1 3600 3600 3600 3600 Name of Chairman of the Board: Name of Secretary (or Clerk) of Board: Number of Meetings of the Board during the year: MANAGERS List the name of each person who performed management duties for the Company during the year, and the total wages and bonuses paid to those persons: (Do not include Director fees in these amounts.) Name ODeen K. Redman Richard L. Redman Mike Dolezal Title President Vice-President General Manager Wages and Bonuses Paid Rev 3/02 Page 2 NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices, extensions or additions to the system; disposal of any substantial portion of the property of the utility; reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingency losses or gains. Rev 3/02 Page 3 BALANCE SHEET Assets and Other Debits Balance Balance Increase Beginning at End or Title of Account of Year of Year (DeCreaSe) Current Assets 1120 Cash and Equivalents 1453692 1803160 349468 1130 Cash 1140 Special Cash Deposits 1150 Working Cash Advances 1160 Temporary Investments 1180 Telecommunications Accts. Receivable 430946 621941 190995 1181 Accts. Rec. Allow. -Telecommunications -21547 -168437 -146890 1190 Other Accounts Receivable 1671038 1225999 -445039 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material-and Supplies 187736 330639 142903 1280 Prepayments 84802 123002 38200 1290 Prepaid Rents 1300 Prepaid Taxes 1310 Prepaid Insurance 1320 Prepaid Directory Expenses 1330 Other Prepayments 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affiliated Companies 3182 -3182 1402 Investment in Nonaffiliated Companies 376269 2222965 1846696 1406 Nonregulated Investments 3525952 2523557 -1002395 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1175000 953094 -221906 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 34468496 35670597 1202101 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 156052 255050 98998 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwill 4324455 4324455 0 Depreciation and Amortization Accounts 3100 Accumulated Depreciated -22729470 -24150930 -1421460 3200 Accum. Depre. - Held for Future Use 3300 Accumulated Depreciation - Nonoperating 3400 Accumulated Amortization - Tangible 3410 Accum. Amort. - Capitalized Leases 3420 Accum. Amort. - Leasehold Improvements 3500 Accumulated Amortization - Intangible -1453998 -1453998 0 3600 Accumulated Amortization - Other TOTAL ASSETS 23652605 24281094 628489 Rev 3/02 Page 4 BALANCE SHEET Liabilties & Stockholders' Equity Balance Balance Increase Beginning at End or Title of Account of Year of Year (Decrease) Current Liabilties 4010 Accounts Payable 1057948 289973 -767975 4020 Notes Payable 4030 Advance Billings and Payments 137975 201798 63823 4040 Customer Deposits 4340 9201 4861 4050 Current Maturities - Long -Term Debt 97349 1217726 1120377 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 0 4080 Other Taxes - Accrued 71761 65269 -6492 4100 Net Current Defer. Oper. Income Taxes 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 4130 Other Current Liabilities 310520 446433 135913 Long-Term Debt 4210 Funded Debt 9406899 8521905 -884994 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 4260 Advances from Affiliated Companies 4270 Other Long-Term Debt Other Liabilties & Deferred Credits 4310 Other Long-Term Liabilities 4320 Unamort. Oper. Invest. Tax Credits - Net 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes 4350 Net Noncur. Defer. Nonoper. Income Taxes 4360 Other Deferred Credits 1195143 1195143 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 40200 40200 0 4520 Additional Paid-In Capital 4530 Treasury Stock 4540 Other Capital 4550 Retained Earnings 12525613 12293446 -232167 TOTAL L1AB. & OTHER CREDITS 23652605 24281094 628489 Rev 3/02 Page 5 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T I N S E R V I C E TO T A L C o m p a n y B a s i s Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Ye a r Du r i n g y e a r or S o l d Ad j u s t m e n t s of Ye a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 74 8 1 3 31 7 3 4 10 6 5 4 7 21 1 2 Mo t o r V e h i c l e s 22 8 0 7 2 30 0 3 76 2 9 0 15 4 7 8 5 21 1 3 Ai r c r a f t 24 2 1 2 1 24 2 1 2 1 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 44 3 7 0 8 14 9 6 4 21 1 7 45 6 5 5 5 21 2 1 Bu i l d i n g s 12 6 3 5 3 8 67 8 7 3 13 3 1 4 1 1 21 2 2 Fu r n i t u r e 13 2 9 3 7 19 0 2 9 25 7 7 14 9 3 8 9 21 2 3 Of f c e E q u i p m e n t 13 3 1 9 65 0 6 68 1 3 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 26 4 4 9 6 61 1 3 54 3 9 7 21 6 2 1 2 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 18 7 0 8 -1 8 7 0 8 0 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 67 6 6 3 3 8 14 1 7 3 7 25 9 8 4 40 6 9 7 7 72 8 9 0 6 8 22 1 5 El e c t r o - M e c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 55 0 8 0 23 8 1 5 18 9 6 7 59 9 2 8 22 3 2 Ci r c u i t E q u i p m e n t 68 1 1 9 2 1 90 3 7 1 3 59 1 7 7 9 90 3 4 71 3 2 8 8 9 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 56 8 3 2 42 2 1 4 14 6 1 8 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 35 7 8 8 33 4 9 32 4 3 9 24 1 1 Po l e s 10 0 6 7 7 10 0 6 7 7 24 2 1 Ae r i a l C a b l e 33 3 4 3 2 33 3 4 3 2 24 2 2 Un d e r g r o u n d C a b l e 52 7 2 7 7 21 2 0 5 -3 9 3 9 54 4 5 4 3 24 2 3 Bu r i e d C a b l e 17 0 3 6 9 5 2 40 3 0 5 9 -3 3 2 8 17 4 3 6 6 8 3 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 19 3 2 7 19 3 2 7 24 3 1 Ae r i a l W i r e 43 1 6 0 43 1 6 0 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S 34 4 6 8 4 9 6 16 3 6 2 4 5 82 4 1 8 0 39 0 0 3 6 35 6 7 0 5 9 7 Re v 3 / 0 2 Pa g e 6 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T A C C O U N T S ID A H O O p e r a t i o n s O n l y Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Ye a r Du r i n g Y e a r or S o l d Ad j u s t m e n t s of Ye a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 74 8 1 3 31 7 3 4 10 6 5 4 7 21 1 2 Mo t o r V e h i c l e s 22 8 0 7 2 30 0 3 76 2 9 0 15 4 7 8 5 21 1 3 Ai r c r a f t 24 2 1 2 1 24 2 1 2 1 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 44 3 7 0 8 14 9 6 4 21 1 7 45 6 5 5 5 21 2 1 Bu i l d i n g s 12 6 3 5 3 8 67 8 7 3 13 3 1 4 1 1 21 2 2 Fu r n i t u r e 13 2 9 3 7 19 0 2 9 25 7 7 14 9 3 8 9 21 2 3 Of f i c e E q u i p m e n t 13 3 1 9 65 0 6 68 1 3 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 26 4 4 9 6 61 1 3 54 3 9 7 21 6 2 1 2 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 18 7 0 8 -1 8 7 0 8 0 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 67 6 6 3 3 8 14 1 7 3 7 25 9 8 4 40 6 9 7 7 72 8 9 0 6 8 22 1 5 El e c t r o - M e c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 42 1 0 6 23 8 1 5 82 6 9 57 6 5 2 22 3 2 Ci r c u i t E q u i p m e n t 68 1 1 9 2 1 90 3 7 1 3 59 1 7 7 9 90 3 4 71 3 2 8 8 9 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 56 8 3 2 42 2 1 4 14 6 1 8 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 35 7 8 8 33 4 9 32 4 3 9 24 1 1 Po l e s 10 0 6 7 7 10 0 6 7 7 24 2 1 Ae r i a l C a b l e 33 3 4 3 2 33 3 4 3 2 24 2 2 Un d e r g r o u n d C a b l e 52 7 2 7 7 21 2 0 5 -3 9 3 9 54 4 5 4 3 24 2 3 Bu r i e d C a b l e 16 9 8 9 3 1 5 40 3 0 5 9 -3 3 2 8 17 3 8 9 0 4 6 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 19 3 2 7 19 3 2 7 24 3 1 Ae r i a l W i r e 43 1 6 0 43 1 6 0 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s -- - 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C\ C\ C\ C\ .. .. .. N (' (' .. C\ -. i. CD .. C\ C\ C\ C\ C\ (' -. c: N N N N N N N N N ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ë:J0()()ro~()ro Q)~ .E Q)- ~i:°:;ro'uQ)~~ Q)"0 ro:J"0 'S;'õ...!;c:-I-.~0 Q)l-Nen!2ro Q)C'::e:Q) i'a: INVESTMENTS Report below the investments in Accounts 1401, 1402 and 1406. Identify each investment as to the account in which included. Minor amounts in Account 1406 may be grouped by classes. Description Telsat CoBank Patronage Rocky Mountain Wireless Syringa Networks Internet Syringa Electronic Equip. Syringa Fiber Independent Cable Systems ICS Electronics ICS Cable Spec Access Eq Non-Reg Declo Wireless DSL Elec Declo Wireless DSL Cable Voip Equipment Syringa Wireless Syringa Wireless Tower Syringa Wireless Elec Nextphone Website Redban Goodwill DSL Inventory Syringa Wireless Inventory Voip Inventory Totals Date Acquired Book Cost of Investments Disposed of This year 3182 RECEIVABLES Book Cost of Investments Held at End of Year o 383904 20 1687118 2760 521501 379007 6000 128813 377404 5126 183545 28441 1723 145923 83686 711980 23558 26850 36415 6662 6086 4746522 Itemize amounts show in Accounts 1180, 1190 and 1200. For notes receivable list each note separately and include the maturity date and interest rate. Minor amounts in Account 1210 may be combined. Name of Company Customers Qwest CABS AT&T NECA Syringa Wireless Idaho USF Misc. Totals Rev 3/02 Amount at End of YearNotes Accounts Receivable Receivable 453505 19315 79560 145833 901102 508 44029 35652 1679504 Page 10 NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Name of Creditor Totals Date of Note Interest Rate ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100,00 Name of Creditor Federal Excise Tax Misc Syringa Wireless A TC Long Distance Sales Tax - Idaho Verisign Customer Refunds 911 Payable State USF Idaho - Utah ITSAP Syringa Wireless Franchise Fee - ICS Totals Rev 3/02 Page 11 Due Date Face Amount Amount 16032 162487 67712 19175 1125 4870 3174 7170 536 175 7517 289973 LO N G - T E R M D E B T Ac c o u n t s 4 2 1 0 , 4 2 4 0 , 4 2 5 0 , 4 2 6 0 , 4 2 7 0 a n d 4 3 1 0 Li s t t h e r e q u i r e d d a t a f o r e a c h o b l i g a t i o n i n c l u d e d i n t h e s e a c c o u n t s , g r o u p i n g t h e m b y a c c o u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c o u n t . If a n y o b l i g a t i o n s m a t u r e s e r i a l l y o r o t h e r w i s e a t v a r i o u s d a t e s , g i v e p a r t i c u l a r s i n a n o t e . Da t e Da t e Fa c t Pr e m i u m ! D i s c o u n t Cl a s s & S e r i e s of of Am o u n t Ou t s t a n d i n g Ye a r In t e r e s t f o r y e a r of O b l i a a t i o n Is s u e Ma t u r i t y Au t h o r i z e d Ye a r - E n d To t a l Am o r t i z e d Ra t e Am o u n t RU S N o t e s Va r i o u s Va r i o u s 92 1 2 8 8 7 68 1 2 1 5 5 2% t o 5 % 26 3 5 3 4 Co B a n k 10 - 1 9 9 6 12 - 2 0 1 1 10 3 8 0 2 4 0 27 7 2 3 2 1 Va r i a b l e 22 1 6 2 3 Zi o n s B a n k C o r p . 3- 2 0 0 6 3- 2 0 0 9 34 5 2 9 6 15 5 1 5 4 8. 8 5 % 26 6 6 3 Re v 3 / 0 2 Pa g e 1 2 CAPITAL STOCK Report below the particulars called for concerning common and preferred stock at end of year, designating separate series of any general class. Show totals separately for common and preferred. For each class of preferred stock, show the dividend rate and whether dividends are cumulative or noncumulative. Show details in a footnote of capital stock sold during the year. Include number of shares, consideration received, premium or discount, and expenses incurred. Class & Series of Stock Common Rev 3/02 Number of Shares Authorized 10000 Par Value per Share 4.02 Page 13 Outstanding per Balance Sheet Shares Amount INCOME & RETAINED EARNINGS STATEMENT Item Total Company Idaho Only Total Operating Income (from page 15) Total Operating Expenses (from page 17) 7100 Other Operating Income and Expense 7210 Operating Investment Tax Credits-Net 7220 Operating Federal Income Taxes 7230 Operating State and Local Income Taxes 7240 Operating Other Taxes 7250 Provision for Deferred Operating Income Taxes-Net 7200 Operating Taxes (Total) 7310 Dividend Income 7320 Interest Income 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 7350 Gains/Losses from the Disposition of Certain Property 7360 Other Nonoperating Income 7370 Special Charges 7300 Nonoperating Income and Expense 7410 Nonoperating Investment Tax Credits-Net 7420 Nonoperating Federal Income Taxes 7430 Nonoperating State and Local Income Taxes 7440 Nonoperating Other Taxes 7450 Provision for Deferred Nonoperating Income Taxes-Net 7400 Nonoperating Taxes 7510 Interest on Funded Debt 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions 7500 Interest and Related Items 7610 Extraordinary Income Credits 7620 Extraordinary Income Charges 7630 Current Income Tax Effect of Extraordinary Items-Net 7640 Provision for Deferred Income Tax Effect of Extraordinary Items-Net 7600 Extraordinary Items 7910 Income Effect of Jurisdictional Ratemaking Differences-Net 7990 Nonregulated Net Income AMOUNT TRANSFERRED TO RETAINED EARNINGS Rev 3/02 9664905 8536705 203778 129556 o 129556 35535 307144 342679 515094 227 515321 -384077 645703 Page 14 9626959 8501683 203778 o 129174 o 129174 35535 307144 342679 515094 227 515321 -384077 643161 OPERATING REVENUES Item Total Company Idaho Only Local Network Services Revenues 5001 Basic Area Revenue 5002 Optional Extended Area Revenue 5003 Cellular Mobile Revenue 5004 Other Mobile Services Revenue 5010 Public Telephone Revenue 5040 Local Private Line Revenue 5050 Customer Premises Revenue 5060 Other Local Exchange Revenue 5069 Other Local Exchange Settements Network Access Services Revenues 5081 End User Revenue (SLC) 5082 Switched Access Revenue (Interstate) 5083 Special Access Revenue 5084 State Access Revenue (Intrastate) Long Distance Network Services Revenues 5100 Long Distance Message Revenue - All Miscellaneous Revenues 5230 Directory Revenue 5240 Rent Revenue 5250 Corporate Operations Revenue 5261 Special Billing Arrangements Revenue 5262 Customer Operations Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 5269 Other Revenue Settlements 5270 Carrier Biling & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES Please identify the following revenues: 1684533 1669637 166138 166138 431103 6264793 506541 841878 431103 6241743 506541 841878 2750 2750 3004 3004 29248 29248 -265083 -265083 9664905 9626959 . To what account were they booked? 5082.12NECA USF $_1727233 State USF $. To what account were they booked? 5084.50528352 Rev 3/02 Page 15 OPERATING REVENUES Item Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses 6112 Motor Vehicle Expense 6113 Aircraft Expense 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expense 6116 Other Work Equipment Expense 6120 General Support Expenses 6121 Land and Building Expenses 6122 Furniture and Artworks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Office Switching Expenses 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Office Transmission Expenses 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information OriginationlTermination Expense 6311 Station Apparatus Expense 6341 Large Private Branch Exchange Expense 6351 Public Telephone Terminal Equipment Expense 6362 Other Terminal Equipment Expense 6410 Cable and Wire Facilities Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Expense 6423 Buried Cable Expense 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrabuilding Network Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense TOTAL PLANT SPECIFIC OPERATIONS EXPENSE Rev 3/02 98371 14737 97865 14661 38525 38327 933 928 74657 74273 9285 9237 54741 54460 65525 65188 408264 406165 99 98 343569 341803 113714 113129 4905 4880 76228 75836 6433 6400 2020780 2010391 3330766 3313643 Page 16 Item OPERATING REVENUES Plant Nonspecific Operations Expense 6510 Other Property/Plant/Equipment Expenses 6511 Property Held for Future Telecomm. Use Expenses 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 6540 Access Expense 6560 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecom. Plant in Service 6562 Depreciation Expense-Property Held for Future Use 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expenses Customer Operations Expense 6610 Marketing 6611 Product Management 6612 Sales 6613 Product Advertising 6620 Services 6621 Call Completion Services 6622 Number Services 6623 Customer Services Total Customer Operations Expense Corporate Operations Expense 6710 Executive and Planning 6711 Executive 6712 Planning 6720 General and Administrative 6721 Accounting and Finance 6722 External Relations 6723 Human Resources 6724 Information Management 6725 Legal 6726 Procurement 6727 Research and Development 6728 Other General and Administrative 6790 Provision for Uncollectible Notes Receivable Total Corporate Operations Expense TOTAL OPERATING EXPENSES Rev 3/02 Total Company 3330766 839 74382 365999 67801 76606 88339 2349160 3023126 16672 11156 388561 416389 Idaho Only 3313643 835 74002 364130 67455 76215 87888 2345848 3016373 16587 11099 386577 414263 861407 857008 130617 129950 671135 667708 79919 79511 3987 3967 3710 3691 15276 15198 373 1766424 8536705 Page 17 371 1757404 8501683 CE N T R A L O F F I C E D A T A as o f D e c e m b e r 3 1 , 2 0 0 6 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e : A l b i o n T e l e p h o n e C o m p a n y , I n c . Pr e f i x ( e s ) : 3 4 9 , 6 3 8 , 6 4 5 , 6 7 3 , 6 9 8 , 8 2 4 , 8 2 7 , 5 2 7 , 5 5 4 , 5 8 8 , 7 6 6 , 7 6 7 Ce n t r a l O f f i c e S w i t c h Ty p e : N o r t e l D M S - 1 0 Ch e c k a l l t h a t a p p l y : St a n d A l o n e _ Ho s t _ X _ Re m o t e _ X _ Ch e c k o n e : Di g i t a l _ X _ An a l o g _ Ch e c k o n e : El e c t r o n i c X El e c t r o - M e c h a n i c a l _ Ot h e r : Ac c e s s L i n e C a p a c i t y De s i g n : _ 1 0 2 4 4 Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : _ 4 4 5 3 (I n c l u d e C e n t r e x , P A L , S e m i - P u b . ) In s t a l l e d / E q u i p p e d : _ 5 7 4 2 Pu b l i c T e l e p h o n e L i n e s _ 2 5 _ Co m p a n y O f f i c i a l L i n e s _ 8 7 _ Co m p a n y T e s t L i n e s _ 1 1 8 _ Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Re s i d e n c e Bu s i n e s s Mu l t i - Si n g l e L i n e Mu l t i - Si n g l e L i n e To t a l Li n e Mu l t i - Su b t o t a l Ce n t r e x Li n e Mu l t i - Su b t o t a l Re s i d e n c e 1- P a r t y 1- P a r t y Pa r t y Re s i d e n c e NA R . 1- P a r t y 1- P a r t Pa r t y Bu s i n e s s & B u s i n e s s Be g i n n i n g o f Y e a r 34 2 5 34 2 5 10 3 2 10 3 2 44 5 7 Ne w C o n n e c t s 32 6 32 6 70 70 39 6 Di s c o n n e c t s 36 7 36 7 77 77 44 4 En d o f Ye a r 33 8 4 33 8 4 10 2 5 10 2 5 44 0 9 Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . O . : _ Di a l T o n e f r o m a n o t h e r C . O . : Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r N o n l i s t e d : _ 4 6 9 _ Cu s t o m C a l l n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : 1 7 3 2 To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d t o : _ 1 9 _ Re v 3 / 0 2 Pa g e 1 8 Lo c a l E x c h a n g e AL L 2 3 4 5 6 7 8 9_10 11 12 13 14 15 16 . 17 18 Re v 3 / 0 2 NU M B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S D U R I N G 2 0 0 6 . Av e r a g e # of C u s t o m e r Li n e s i n U s e 44 2 6 Lo c a l C a l l s Nu m b e r A v g . / (1 0 0 0 s ) L i n e Pa g e 1 9 To l l C a l l s O r i g i n a t e d ( T o t a l o f a l l C a r r i e r s ) Av g . / In t r a s t a t e I n t e r s t a t e T o t a l L i n e 19 4 8 9 6 18 5 2 1 3 38 0 1 0 9 86 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 2006. CUSTOMER RELATIONS RULES COMPLIANCE Rule IDAPA 31.21.01.603 Rule IDAPA 31.41.01.105 Please provide copies of: Summary of Customer Relations Rules for Telephone Corporations Idaho Telephone Solicitation Act Notification Method of Notification: Mailed separately to customers Yes_X_No_ Included in directory Yes_X_No_ Date of notification _2-1-07 Alternate method of notification Rule IDAPA 31.41.01.403.02 Record of Complaints: Number received by Company Category of complaints (if known): Deposit Disputes Charges on Bill Denial/T erm ination Quality or Availability of Service x Carrier Selection/Assignment Miscellaneous Rev 3/02 Page 20 CERTIFICATE County of Cassia ) ) ss ) State of Idaho WE, the undersigned ODeen Redman and Darla Redman, of Albion Telephone Company, Inc. located at 225 W. North Street, Albion, ID 83311, on our oath do severally say that the foregoing return has been prepared under our direction, from the original books, papers, and records of said utility; that we have carefully examined same, and declare the same to be a correct statement of the business affairs of said utility for the period covered by the return in respect to each and every matter and thing therein set forth, to the best of our knowledge, information and belief. Subscribed and Sworn to Before Me this 3 I day of ~ ,(Year),;bO,$ ~~~MARUANE JONOTAR PU STATE OF IM My Commission expires 7= e:~- ,(Year) ~ l) t2 . Rev 3/02 gdklexcel/jnelson/anulrpts/telannualrpt Page 21 .. CO M P A N Y N A M E : A l b i o n T i i l i i l l l i ( ) n e C o m p a n y , I n c . 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' , 4 0 6 3 ; . - - . . . . . . . . . . . _ ~ s , 9 ~ ~ T = = - - - - - - 9 6 . 7 5 9 -- _ _ _ 7 ~ ~ ~ ~ - - - - - - ; ~ f ~ ~ L - - - - - ~ ~ ~ ~ I - ~ H ~ ~ - - - - - - - ; f Ó ~ ~ ~ ' , . . . . . . . . ~ ~ ~ L - - - ~ i ~ ~ F - - - - - - _ ; ~ ~ ~ : t _ _ _ _ ~ ~ : ~ ~ ~ .. . - - - - - - - - - - - - - - . . - . . . . . . . . . . . - . . - . - - - - - - - - - - . - - - - - - - f - - - - - - - - _ _ _ _ _ _ L _ _ _ _ _ _ _ _ ., . . _ ( 7 ) - 1 0 - - 4 4 9 . 9 7 ~ - - - 1 9 7 3 7 6 , - - - - 3 8 4 8 Ç - - 2 3 5 . 8 6 ~ - - 7 2 1 0 5 1 . . . . . 3 7 7 l ¡ j . . . - 1 1 7 6 1 - . . 1 2 6 4 7 6 1 - - - - 2 1 Ü S I 11 1 5 , 8 3 2 , 9 8 6 6 , 6 8 2 , 1 3 8 1 1 , 7 4 2 , 9 8 8 . 8 , 4 2 5 , 1 2 6 2 , 6 3 4 , 5 8 3 1 9 0 , 9 4 4 1 5 4 7 , 4 4 6 4 , 0 3 4 , 8 8 7 1 7 , 4 0 7 , 8 6 0 19 1 2 2 4 6 . 9 8 1. 9 1 2 . 2 4 7 -- - - - 0 o o 67 9 , 5 2 2 65 , 9 2 3 o o o 23 , 6 8 9 o 8, 0 0 62 -1 5 . 1 8 9 2, 6 7 4 , 6 5 4 1. Q . 3 0 . 0 9 ~ 99 . 3 6 4 1, 1 1 8 , 4 7 7 17 7 . 1 5 9 62 9 ~ 5 0 1 , 0 3, 0 5 4 , 6 0 0 -- - - - N e i O p e r a t i n g I n c o m e -6 7 3 , 8 9 7 SU M M A R Y ( c o n t i n u e d ) Av e r a g e R a t e B a s e ~ó 1 5 e i e ~ ~ i l P i a n t i n S e r v i c e _ 20 0 5 P l a n t A c q u i s i t i o n A d j u s t m e n t 3. 1 0 0 L e s s : Ac c u m U i a t e d D e p r : ( - ) 34 x x - 3 6 x x A c c u m u l a t e d A m o r t . ( - 1N ~ ~ ~ 4 ~ ~ e ; ~ ~ ~ ~ d ~ ~ ~ ~ ~ ~ ~ ~ T a x i r ~ - = - : - . . . 40 4 0 C u s t o m e r D e p o s T t - - - - - - - - - 43 1 0 O l l 1 e r L Q n g T e r m T i a b i l i l i e s - - - -: - : E q u a l A c c e s s E q i . p m e n ( - - - - -- - - 6 t t e r R a t e B a s e - - - - - To t a I A v e r a g e l ~ - a t e B a s e Pa g e 1 o f 5 .. PL A N T I N S E R V I C E D E T A I L 21 X X G e n e r a l S u p p o r t F a c i l t i e s -- - - - - - - - - _ . . . _ - - - - - - - - _ . . _ - - - _ . . _ _ . . . _ _ . . . _ - - - - - - - - - - - - - - - - _ . - - _ . . . . - , 26 2 , 6 5 8 1 1,4 1 9 , 2 3 5 78 5 , 7 8 4 : o o o 75 2 , 5 6 7 47 8 , 8 7 9 .1 7 , 0 0 8 3,1 5 4 , 5 1 6 o 20 6 , 8 1 6 10 , 7 3 5 32 4 , 4 7 9 -- - 0 1 4, 9 4 5 , 0 0 0 -- - - - - - - - - - - - - - - - 1 - - 22 ) ( _ ( ; I l . r t r ~ ( ) f f i c e E q u i p m e n t : , . 1 . . . .f A T 1 - ( ) p e r a t o r S y s t e m s . . . . . 0 1 0 . . C A T 2 - T a n d e m S w i t c h i n ¡ i ( A l l o c J _ 3 . _ _ _ _ ( ) _ ! 0 CA T 2 - T a n d e m S w i t c h i n g ( A s s i g n . ) 4 . 0 ! 0 cA T 3 - L o c a l S w i t c h i n g . . . . . . . . - . - . . . . . . - . 5 . - - - 5 ; 0 1 7 , 1 1 2 - 4 2 6 4 5 4 5 r 4 , 2 8 4 , 5 4 5 CA T 4 . 1 2 - E x c h . T r u n k ( J o i n t U s e ) - 6 . - - - - 4 7 8 , B y g - - - - - - . . 0 cÄ T 4 : i 2 : E x c h . T r u n k ( O e d . Us e ) 7 . - - i , 1 0 0 , 0 0 9 - - 1 0 8 3 0 0 1 1 1 , 0 8 3 , 0 0 1 CA T 4 . 1 3 : S u b s c r . l . i n e ( J û f n l u s e j - - - - . - - . . - 8 . - - - - - - - - 4 , 2 4 6 ~ 4 8 6 - - - 1 0 4 2 1 6 8 - 4 9 8 0 2 1 1 , 0 9 i , 9 7 0 . Ç , . Ä I 4 . 1 3 - S u b s c L l . i n e ( f 5 e ( U ~ e C - ~ ~ - ~ - T - : - = - _ _ ~ - ~ - ' : ~ : ~ ' : _ ' : 6 - - - - - - - - - I : ~ _ - - - - . . . . . . 0 __ _ _ _ ~ A ! 4 _ . ~ ~ - I ) ( I r u n k ( J o i n t U s e ) 1 0 . 9 : 2 5 , 3 ( ) 5 _ _ _ _ _ _ 6 _ 5 0 1 6 7 ! 6 8 3 8 2 ' 7 1 8 , 5 4 9 1 CA T 4 . 2 3 - I X T r u n k C k t . ( O e d . U s e ) 1 1 . 6 9 , 7 3 1 5 8 9 9 6 1 5 8 , 9 9 6 -' : = - c A : I T E B : ~ s . t i . R ~ m o t e T r u n k C k t . . . . 1 2 . 81 F 8 T . . 4 9 3 3 0 2 ! . _ " ' ~ ~ . l O L _ _ _ _ _ _ _ _ _ _ _ _ Ot h e r C O E 0 i ¡ 0 To t a l c ó e - - - - - - - - - - - 1 4 . 1 2 , 6 5 5 , 3 6 3 1 6 , 4 5 0 , 1 8 2 1 1 , 2 6 0 , 1 8 1 7 , 7 1 0 , 3 6 3 23 X X I n f ( ) r r T a t i : ~ ~ ; : i ; ~ ~ : i ~ ~ ~ = ' : = : ' : : . - ~ ~ = = = = = . : = = : = = - . : l : : = . : . : : . = - . : . : . : _ _ _ - L = . : : : ~ : . = : . . : . : _ = _ = = = - = ~ . : : : : i - ~ gi i : l 1 ¡ g r ¡ i u l a t e d ç £ ' i = _ _ _ _ _ _ _ _ _ _ - - - ~ t - - - - - - - - - - - ~ t - I . . . . . . . - - ~ I -- T ( ; i a ~ - - - - - - - - - - - - - - - - - - - - - 1 7 . O ! 0 1 0 0 -- - - - - - - . - - - - - - - - - - - - - - - - - - - - - - - - : - - - - - - - ~ - - - - - - - - - - - - . - - - - - - - 1 24 X X C a b l e & W i r e F a c i l t i e s : ! ~ CÄ T Ü : S u b s c r i e r L i n e ( C o m m o n ) - - - - 1 8 . 1 3 , 0 6 6 , 2 3 9 . . 3 2 6 6 5 6 0 1 - - - - - - - - - , - - - - 3 , 6 6 , 5 6 0 1 .. C 5 Ä t I 1 ~ 2 ~ ~ ~ c l b e r L i n e ( D e d I : : _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 ~ = _ ~ ~ _ _ ~ 2 1 3 , ~ 0 3 i = : : - - - - - - - - I : : _ ~ . : . : : : ~ _ 3 ~ 6 . i ~ ' _ _ _ _ _ _ 1 5 6 , 0 9 8 1 . - ê Ä H : ~ : ¿ ~ - l ~ ~ ~ : ~ ~ ~ ~ ~ : : i . . . - . - - . . . . . . - - - - - - - - ~ ~ ~ - - 1 , ~ t H ~ T j - - 1 6 5 7 8 4 3 . . . - 1 , 6 5 7 , 8 4 ~ __ - c Ä T J - f 8 1 i : u _ n l ( ~ ( J o i n I U s e ) - - - . . . - . - . - : : 2 2 . _ _ _ 5 , 1 9 9 ~ 4 ~ j ~ 0 8 6 9 2 8 1 1 5 0 9 0 5 - - - " , - , 2 3 7 , 8 3 3 t CA T 3 - I X T r u n k ( O e d . U s e ) 2 3 . 6 9 , 7 2 8 1 1 5 9 3 9 4 5 9 , 3 9 4 -- - C A f 4 : H o s V R e m o t E l r u n k - . . . - - - - 2 4 . - - - - - - - f 0 9 2 ; 1 0 5 l - 6 5 8 7 7 i r 6 5 8 , 7 7 9 -- - i 5 h e r C & W F . 2 5 - : - - - - - - - - - - 0 1 - - - - - - - - - - 1 - 0 ,. o t l i I C & W F - - - - - - - - - - - - - - 2 6 . 2 1 , 7 8 5 , 9 2 8 1 8 , 0 1 2 , 2 6 7 1 2 , 0 2 4 , 2 4 0 1 1 0 , 0 3 6 , 5 0 7 -- - - - - - - - - . . . . . . . - - - - - - - - - ~ : . = . : = = ~ ~ = = - . . : - - - - ~ - . - ~ . I , I . - . - - , _ _ _ , ~ - . . . . . : : . . . - . _ = - - - _ = = : : - . , _ _ . = _ . - - - - . : = . : ~ = r 1~ ~ = I . ' i .0 : . - - - - - - - - - - - - - - - - - - - .. ~ T f 01 0 1 1 2, 7 5 4 , 3 0 5 1 1. 1, 1 5 6 , 5 7 7 26 X X O t h e r A s s e t s : -- - - - - - Ca p i t a l L e a s e s Le a s e h o l i m p r o v e m e n t s __ _ _ I n t a n ¡ i i b ~ _ _ _ _ _ _ _ To t a l O t h e r A s s e t s 27 . 28 . 29 . 30 . __ _ _ _ . . , o o Õ . J - - ' o 3, 5 4 7 , 0 7 9 I ¡ 19 , 1 6 6 , 1 0 5 To t a l T e l e c o m . P l a n t i n S e r v i c e 37 , 1 9 5 , 5 9 6 1 15 , 6 1 9 , 0 2 6 ' (5 b ) 31 . De p r e c i a t i o n & A m o r t i z a t i o n Ac c u m u l a t e d D e p r e c i ¡ i l i n _ l ) e t a i l 31 1 X ~ e n e r a l S u p p o r t F a c i l t i e . s _ _ ~ 2 X _ ~ r i i i a l _ ( ) ~ _ s - i ~ c . h i L 13 1 2 X O p e r a t o r S y s t l 3 ~ _ _ 31 2 X . C e n t - ' i . 1 O f f c e I r i i s i i i s s i o n 31 3 X I n f o r m a t i o n O n g . / T e r m . E q u i p . 31 4 X C a b l e & W ¡ r e F i i C i l i t i e s . . - - - - - - _ . . . _ - - - - - - - - - - - - - - __ " I 0 t a l A c : c u m . ' ~ l ! c l O ' ' P l " e c i a t i o n 44 4 , 8 8 4 .2 6 , 6 5 1 1 77 , 7 5 1 75 2 5 6 7 47 8 8 7 9 20 8 4 3 3 5 17 0 0 8 28 0 1 3 o 10 4 2 1 6 8 36 3 9 7 10 7 3 5 ¡ 19 5 1 8 0 ' 17 0 4 1 9 12 9 2 9 9 47 8 , 8 7 9 1 i i 3, 0 3 2 , 0 8 2 1 1,3 4 1 , 8 8 6 ' 92 , 1 5 3 : o o 0' O! o oi 1 __ 3 2 6 6 5 _ 6 ~ ~ _ _ _ _ _ - - _ : ' J ~ ~ = . ~- - 5 3 2 6 1 ! . . . . . . ~- - - - - - - - - - - - - - - - - r - - - - - 78 _ 1 ! l 4 0 _ . _ _ _ ~ ! l ~ ! i _I 1 0 3 3 4 1 17 6 7 3 J . . . . . . - - - , 1 4, 2 2 1 , 1 7 3 ' 24 1 , 1 0 9 o 1 i OJ 65 3 3 1 1 9 _ _ _ _ _ _ _ 9 J 9 9 , ( ) 7 9 = _ _ _ 1 3 7 " , 1 3 ( ) 5 '! _ 3 . ~ ( ) __ _ _ _ § _ 3 , ~ ( ) 1 87 1 , 6 4 9 -- - - - - - - - _ . . _ - - - - - - 10 , 3 3 4 -- - - - 2 6 0 6 5 1 . 4 3 3 , 3 2 6 ¡ . . 0 6, 7 9 3 , 7 7 2 1 1 1 , 7 4 9 , 4 2 1 : . - - - - - - - - - - - t - - - - - , , -- 1 - - - - - - - - - r - - - :1 - - - - - - - - - - 0 1 ! I . . 0 r . ~ O! 0 0 l .. j 01 49 3 3 6 7 6, 0 0 7 , 9 4 3 1 35 9 , 9 1 3 49 3 , 3 6 7 10 , 6 1 1 , 6 3 8 1 ¡1 .: 6 4 1 8 6 4 1 = - - - - : 1 , 0 9 0 , 5 4 6 1 1. . . . : ~ - = _ _ . : : - - 2 1 0 6 7 L . : : : = - - - ~ 6 2 1 ß 6 i , ! 0 -1 3 4 ~ 8 ! l 8 J . . _ ~ : : : . : . : : : , 4 4 . 0 , 3 . f ~ 1 . - 4 0 4 4 9 5 3 . . . . . - - ~ 6 ß O 3 , -6 , 6 5 4 , 7 8 2 - 1 0 , 7 5 5 , 3 6 8 1,0 4 9 , 9 9 7 18 , 0 2 9 , 4 9 1 -2 , 2 4 9 , 8 4 1 .4 , 1 4 0 , 4 4 7 1 o -- - - - - - - - - - - - - - - - - - - - _: 4 , 4 l 3 ( ) 1 ~ 5 1 o -1 o . 7 5 6 ~ 4 7 1 -2 1 , 6 2 6 , 8 9 4 ._ - - - - 1 - - - 1 -1 , 1 5 9 , 2 9 ~ - : 3 6 3 4 0 1 r - - - 2 1 7 7 1 - - - 6 3 5 1 1 ! =- 3 - : 1 9 - ; 3 8 0 - - - - - - - - , - - - - - - - - - - , -- - - - - - - - - - - - - - o -2 , 0 3 9 , 7 8 0 o -4 , 1 5 3 , 0 7 1 -1 0 , 8 7 1 , 5 2 6 1- - ! -9 4 4 7 4 4 1 - 2 1 4 5 5 1 1 :3 5 1 9 3 8 0 r - . - - - - - - + -- - ~ ~ ~ " i r - - :i l -9 , 0 4 6 , 4 2 4 1 J- - = - ~ - = ~ - - - - ~ ~ n - - - - - - r - ~ - - o , 1. I 2.3. ;j -7 3 5 7 5 7 -8 7 4 7 9 4 , -1 , 8 2 5 , 1 0 2 ! i Ac c u m u l a t e d A m o r t i z a t i o n D e t a i l !3 4 1 O - C i i p i i ; ¡ i T e a s e s - - - - - - - - - - 13 4 2 0 _ l , e a s E 3 . e C I r i £ l o v e . n i e n l s - 35 0 0 I n t a n q i b l e s I. 9 . -+ - 1 0 . Pa g e 2 o f 5 . r - . . . ~ _ .- 7 ! l § ~ ~ l _ _ _ _ _ - 4 2 6 8 8 , _ ~r - - ~ -3 , 4 2 1 , 0 9 9 1 - 1 7 1 , 2 8 2 1 o o o -2 5 5 3 2 4 j i i -1 8 9 3 7 0 1 -5 0 8 , 2 0 5 , o o o .. 36 0 0 A c q u i s i t i o n A d j u s t m e n t -- - - - - - - - - - - - - - - - - - - - - - - - - - - - _ . _ - - - - - - - - - - - - - _ . . _ - - - - - - - - _ . . _ - _ . . _ _ . . _ - - _ . _ - - To t a l A c c u m u l a t e d A m o r t i z a t i o n o 0, o * 1L L 12 . r ,. ( 5 c ) * or o oì o Õ OP E R A T I N G E X P E N S E D E T A I L .~ X X - 6 4 " " 1 ~ n ! ~ p ~ i : i f i i : O p , i r i i o _ n s , _ _ _ _ _ _ _ _ _ 61 1 0 - 2 0 G e n e r a l S u p p o r t F a c i l t i e s Ii ~ = . f ~ r 1 ¡ ¡ I O f f c e S W i t c l l n g - - - - 62 2 0 O p e r a t o r S y s t e m s 62 3 X - C e ; i 1 l r a i ó f f c e T r a n s m i s s i o n 63 ) ( X l n f o r m a l i o n O r i g : i f e r m : E q u i p . 64 X X . . . . C a b i t i & V i , i i r e F a c u i i i e s - - - - To t a l P l a r i t S p e c i f i c : t 63 5 5 4 1 24 7 0 4 2 1 - . - - L _ 22 9 9 8 Q j . _ 44 9 3 2 1.2.3.4.5.6.7.8.9. 10 . 11 . 15 1 , 3 4 7 . - - - - - 4 8 4 , 7 0 0 . - - . o 45 1 , 2 2 5 o -f , 0 9 5 ~ 9 0 ( 2, 1 8 3 , 1 7 3 14 4 3 3 48 2 6 5 77 , 9 8 7 29 5 , 3 0 7 o 27 Ù 1 2 o 50 4 , 8 6 8 1,1 5 3 , 0 7 4 40 3 0 4 2 ! 94 3 , 6 1 8 ! 10 1 8 2 6 , 20 9 , 4 5 6 1 I (5 a ) 65 X X P l a n t N o n s p e c i f i c O p e r a t i o n s 65 1 2 P r o v i s i o n i n g 65 3 ) ( - N e t W o r k O p e r a t i o n s 6S 4 0 - - A c c e s s p ¡ ¡ i a i o L Ë c s -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _ . . _ - - - - - - To t a l P l a n t N o n s p e c i f i c -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 19 5 4 8 1 1 -0 1 - 10 5 , 2 7 36 , 1 1 5 14 1 , 7 4 2 o ._ 2 ~ , 9 9 n 36 , 1 1 5 24 1 , 1 0 6 86 0 7 9 , -- - 3 6 1 1 ( ; " ' 12 2 , 1 9 4 1 (9 ) _ _ _ _ _ _ _ = - ~ ~ ~ : = ( ~ r 19 , 5 4 8 ì -- 24 4 4 6 1 51 3 9 4 1 1 47 8 4 5 1 21 2 3 3 8 1 33 6 , 0 2 3 1 33 1 1 1 33 , 1 1 1 ~S . 6 X _ i : e j l e c i a t i o n ~ m o r t i z a t i C ! _ _ _ _ _ _ _ _ . 1 8 ) _ _ _ _ _ _ _ _ _ _ _ 65 6 1 G e n e r a l S u p p o r t F a c i l t i e s 1 2 . 8 7 , 3 4 9 11 5 ~ L = - J : ~ t r ¡ ¡ I Ó f f ~ e . w ¡ ¡ c h ! n g _ _ - . . = - = = ~ - = . : = = ~ J ~ . - = = = - - 6 ~ . 5 ~ 8 4 ~ i '6 5 6 1 O p e r a t o r S y s t e m s 1 4 . O . . . . 6S 6 1 - - C e n t r a T Ó f f c e f r a n s m i s s i o n 1 5 . . 6 5 5 : - 4 3 9 2 1 7 0 8 4 1 9 9 5 0 2 65 6 T - i n f o r m a l ¡ ( i n Ò r i g . i f e r m : E q u i p . 1 6 . . . . - - - 0 - - - - - - - - - I - - - - - - - - - ~ 65 6 1 . Ca b l e & W i r e Fa c i l i t i e s ' . . . 1 7 . 1 , 1 1 2 , 6 8 0 3 6 3 5 3 1 1 1 0 8 7 4 2 65 6 3 Ca p i t a l L . e a s e s 1 8 . " ' 0 . . - - - - - - - - - - ¡ - - - - - - - - - 65 6 3 L e a s e h o l d I n i p r o v e m e n t s 1 9 . O ! 65 6 4 I n t a n g i b l e s . 2 0 . 0 I 65 6 5 A c q u i s i t i o n A d j u s t m e n t - - i i . 0 1 -- T o t a i e p r e C l a t i o i 1 & A m o r t z a t l o n ( 5 a ) i : C 2 , 5 0 1 , 3 1 3 1 , 1 6 6 , 2 6 2 1 I -- - - - - - - - - - - - - . _ _ _ _ _ _ _ 8 3 3 L - - - - 4 5 , 0 0 9 1 _ _ _ _ _ _ ~ 1 Q 9 ~ _ __ 5 4 8 , 9 6 8 o 31 6 , 5 8 6 1 o == ~ ~ 3 f ? : 2 j 3 r . . . . . . . o oO_ . . ~ o 1, 3 8 2 , 8 3 6 OP E R A T I N G E X P E N S E ( c o n t i n u e d ) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 66 ) ( _ C u s t o m e r O p e r a t i o n s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 66 1 X M a r k e t i n g 1 . 0 0 66 2 X o p e r a t o r S e r v i C s - - - - - - - - - - - - - - - - - - - 2 . . . - - - - - - - 0 - - - - - - 0 66 2 ) ( . Di r e c t o r y P u b l i s h i n g - A l p h a . 3 . . . . . . . - - - - - 0 1 1 0 66 2 5 ( - J 5 i r e C l o ¡ y P u b l i s i i i n g ~ e i a ~ i f e a _ _ _ _ _ _ _ _ _ _ _ _ _ . i _ - - = - - - - 0 _ _ _ . . . . . 1 I . . _ _ ( ) _ _ 66 2 X D i r e c t o r y P u b l i s h i n g - F o r e i g n 5 . 0 , . , . . . 1 ! . 0 1 1 66 2 3 S e r v i c e O r d e r P r o c . - E n d U s e r . . . - - - 5 . - - - 1 0 0 , 7 8 1 4 4 9 2 4 1 . . . - - - - 4 4 , 9 2 4 5 2 6 8 1 1 66 2 3 P a y m e n t : & - C c ; ¡ ¡ e c l i O n - E n d t J s e r - - - - - - i : - . . 5 1 , 2 4 0 16 3 5 0 ! . . 1 6 , 3 5 0 . . . 1 0 2 5 3 1 1 ,6 6 2 3 B i l l i n g I n q u i r y E n d U s e r . _ _ 8 . _ _ _ - = - - 3 0 - ; 5 0 5 _ _ _ _ 9 7 3 3 - - - - 9 , 7 3 3 . . . 6 1 0 5 1 . = r 66 2 3 S e r v i c e O r d e r P r o c . - C X R 9 . 4 4 6 2 2 3 ' 2 2 3 - - - - - - 2 2 - - T - - - 66 2 3 - P a y m e n t & C o 1 i e C t o n ~ G X R . - - - - - 1 0 . - - - - - - - - 2 , 7 5 4 1 3 7 7 ! L 1 , 3 i 7 . - - - - - - 1 3 7 7 - ~6 ~ 3 _ - l 3 i m n 9 l n q u i r y - C X R - - - - - - - - - - - _ 1 1 , _ - - T 2 2 ( L _ 6 1 ( ) L J _ : _ : _ : : = = - = ~ ! Q - - - - - - 6 1 0 66 2 3 C o i n A d m i n i s t r a t i o n 1 2 . 0 I 1 0 65 2 3 - i ' f e v . A c c t g . - T o I l T i c k e t P r o c . . 1 3 . . . . . - - - - - - - 0 = i ~ - - - - 0 66 2 3 - = _ _ R e v : - A c c § . - _ L ( ) c ~ C l l e ~ s _ ' £ ' r ( ) c . . . . . . . . . _ _ _ _ _ ~ ~ i T = - = - - = = = - 4 6 , 8 7 3 _ 2 _ 0 1 _ 0 9 J . . . . . ! 2 0 , 1 0 g " ~2 ~ . . . J ~ e v . . A c c t 9 ' , - O , t h e , , r , B , I I . I , & , C o i L , . . . . 1 5 . _ _ _ _ _ . _ 4 8 , 3 0 2 _ _ _ 1 4 4 0 6 ~ , I . . . 1 4 , , 4 0 6 66 2 3 R e v . A c c t g . - S L C B i l l i n g 1 6 . 2 , 5 4 2 2 5 4 2 ~ 2 , 5 4 2 66 2 3 - - R e v : A è c t g . - C X R B & C ( 9 ) . 1 7 . - - - - - - 0 - 2 7 7 0 , 1 2 , 7 7 0 66 2 3 - 8 & C A m t s " ' a i d t o L E G s ( 9 ) 1 8 . - - - 0 1 ' . 0 16 6 2 3 . b t h e r C u s t o m e r S e r v i c e . . 1 9 . - 3 ; 8 9 0 - - 3 8 9 0 3 , 8 9 0 1" - - - - 1 ' o t a l C u s t O m e r O p e r a t i o n s - - ( 5 a ) - 2 0 . - 2 9 4 , 0 9 3 1 1 6 , 9 3 4 0 1 1 6 , 9 3 4 36 6 7 9 54 8 9 6 8 21 6 , 5 7 4 11 8 8 3 6 1 1 '2 2 6 8 6 : 1 i 35 9 , 2 3 ! l 16 7 X x C o r p o r a t e o p e r a t i o n s : - + '6 7 1 5 ( - E x e c u t i V e & P i a n n i n g 67 2 X - - Ó e n e r a l & A d m i n i s t r a t i v e I ~; : ~ ~ I ~ . . ~ = = - : ~ i ~ ~ ~ f = = = . - - - - 1 i ~ ~ - - 21 . 22 . 27 8 , 6 2 1 .4 2 ( 3 4 9 1 - 1 5 7 0 2 1 r - - - - . . . . . . . . 2 6 4 , 7 9 6 .2 1 6 2 6 5 1 . . . . 3 6 4 ) 0 5 Pa g e 3 o f 5 26 7 6 4 1 -- - 1 6 9 4 0 ; == 1 -- -- = r 70 , 3 1 8 1 -- - - ~ - - - - - - - - - 89 1 0 7 : . 12 2 7 2 7 T 14 6 4 35 2 9 32 8 6 --- - - ~ - - - - 1 fi f 2 Ö T 20 , 4 0 8 1 1 __ _ I 19 8 4 ! 1,9 8 4 1 84 5 ¡-I-X -- - - - - - - - - - - - - 44 9 3 1 .6 1 8 9 1 - 42 7 2 18 3 4 1 =- ' 17 0 7 4 ! 24 8 1 8 ' 64 , 5 0 5 ' 57 8 7 5, 7 8 7 ! =1 ~.1 14 1 7 5 1 . 19 5 2 4 1 43 1 7 8 11 6 1 2 9 73 , 3 6 0 18 9 , 3 9 3 o 17 6 , 3 1 3 o 59 1 , 0 3 3 ' 1, 0 3 0 , 0 9 9 10 8 1 0 8 ! 1 34 1 7 4 8 1 60 9 , 1 6 3 1 o 99 , 3 6 4 . - - 0 99 , 3 6 4 .5 8 4 8 2 58 , 4 8 2 ' o o -- - - - - - - - - - - o o -- - - - - - - - - - - - - - - o -- - - - - - - - - - - - - - 50 5 8 9 : 5 5 , 8 ~ ' 7 24 6 3 7 1 . _ _ . . . i 8 9 0 __ _ _ , 1 4 6 6 7 ~ _ _ _ _ _ ~ ( ) , 7 7 2 1 2 2 3 f- - - - - - - - - - - - - 1 1 , 3 7 7 _1 - - . . 6 1 0 - I . . _ _ = - : = ~ = = _ . Q o -- - - - - - - - - - - - - _ . . . __ _ _ _ _ _ _ _ _ _ _ _ 2 ~ , 7 6 4 16 9 4 8 3 3 , 8 9 6 - - - - - - - - - - - - - - - - - 0 ' -- - - - - - - - - - - - __ _ _ - - 7 7 Q -- - - - - - - - - ( ) , o 17 7 , 1 5 9 10 6 , 8 4 1 ì -- - - - - - 10 , 6 8 2 ! -- 33 , 6 9 9 37 3 , 2 8 6 ' o 62 9 , 5 0 1 67 2 8 23 . 24 . 59 6 , 4 4 6 21 1 , 8 3 4 o 70 5 , 9 7 0 o 1, 3 3 5 , 4 7 1 EA S S e t t l e m e n t E x p e n s e To t a i C o r p o r a t e O p e r a t i o n s -_ . . . . _ - - - - - - - - - - - - _ . _ - - - - - - - - - - - - - - - - _ . . _ _ . . _ _ . . . . _ _ . - - - - 10 9 , 5 2 4 , -- (S a ) -- - - O t h i i r Q . e e . . i i t i l i 9 . E i c p e n s e s : -- - - E q u a l A c c e s s P r o v i s i o n -~ : ~ . . - - Ü n i v e r s a l S e r V i c e Fu ¡ ' - d - =~ : - - - - i J f e T n e C o n n e c l ¡ o n A S s l S t a r i c e i T o t a l Ot h e r - o 0'o Õ r~ O J (1 1 ) -( 1 2 ) (5 a ) (S a ) 25 . 26 . -2 7 . 28 . o o o "0 o o o Õ 0, ~ 50 , 5 0 2 , - - = - ~ = = = = = ~ = t - - - - - - - - - - - - - - - - - 0, 0 , 16 1 , 9 9 7 ¡ 1 , 8 3 1 , 5 8 4 ¡ -- - - - - r - - - - - - - - - - - - - - - - _ . . . . _ - - == _ - = - : = = - = ~ 9 4 7 . Q = = : " _ 1 3 5 0 6 1 ~ Z § = - = _ = _ : = - : E l f ~ L : _ _ : = = - = = 1 3 7 _ 0 C _ = : : = _ _ = = ! ~ ä r = o i ' __ _ _ _ ' . _ _ L =_ _ _ . _ . _ _ J _ . 1 - - - - - - ~ - _ - - - - - 10 8 1 1 1 , 0 8 1 I " 60 , 5 5 1 , 1 3 , 5 0 6 , 7 4 , 0 5 7 2 2 , 8 7 5 , 1 , 3 7 0 3 , 9 9 8 , 4 0 , 4 0 4 , -- - - - - . i . . . . - - , - - - - - - - - - - - - - - - - . . _ . . _ . . . . - 1 - - , . . . . . - - - - - - . . . . ' - - - - - - - I i i I i 1- ( 1 3 L 7 . - - - - - 2 , 4 8 9 , 6 0 5 : - : - = _ _ = . = ~ n " 9 , 5 4 L ' _ _ _ _ _ _ - 1 ¡ ¡ 1 , ~ 4 g ' - - 2 , 9 3 8 , 1 9 8 - _ - - - - = 3 - 3 0 ; i : S 1 . 1 - - _ _ _ = 1 4 - ' 0 . 5 1 . _ _ _ _ _ - = 1 6 5 , 9 9 5 1 . - - 3 3 ; 5 3 2 1 " - - - - - - , . . . . : = : ¡ ; ~ f - - . - - - I t - - - = . 2 , ~ ~ ; : 1 : 1 : : - _ _ . . _ - 3 ~ ö 1 : ~ ~ ~ ¡ . . _ _ ~ : 1 Ì t ~ ~ t - - 2 l ; ~ : ~ ~ ~ - - - - 3 - : ~ ~ a - - . i l - t ~ ~ - 1 7 ; : Ö ~ r - - - - - - - ~ K § Õ ~ - = = = -' - - 11 . 2 , 2 1 7 , 4 6 1 3 , 0 0 4 , 8 3 0 , - 2 1 1 , 3 4 9 , 2 , 7 9 3 , 4 8 1 - 3 7 5 , 4 7 0 , 1 0 , 7 6 4 , -- : _ _ ( 1 & L ~ _ _ _ _ _ _ _ J . 4 . 6 , ~ ~ ? 7 2 , 3 4 1 5 1 - - - _ _ _ _ 1 8 , T 7 . 9 J _ _ _ ~ . 1 - , 1 2 . ' _ 1 9 , 7 1 9 I 1 , 4 2 0 ' 4 , 0 L 4 L _ _ (1 7 ) 1 3 . 0 I I 0 : i -1 = = = - = - 1 4 . 2 , 0 7 0 , 7 6 9 2 , 9 3 2 , 4 8 5 , - 2 3 0 , 1 2 8 , 2 , 7 0 2 , 3 5 7 - 3 9 5 , 1 8 9 , 9 , 3 4 4 , 1 15 . 6 1 1 , 6 4 1 . . 2 7 3 , 8 5 1 , . . . 5 2 , 5 2 4 1 3 2 6 , 3 7 5 . 9 4 , 6 6 5 4 , 8 4 1 , 1 5 , 3 9 3 16 . . . - - 0 - - - - - - - - - - - . . . . 1 . . - - - Ò - - - . . . . . _ - - - - - - - - - - - 1 - - - - - - - - - - - - - 17 . - 0 - - - - - - - - - - . . . . - . . . - - - - Ó - - - - - - - - - - - - - - - r - - - - - - - - , - - - (1 8 ) 1 1 8 . 6 1 1 , 6 4 1 2 7 3 , 8 5 1 , 5 2 , 5 2 4 1 3 2 6 , 3 7 5 9 4 , 6 6 5 , 4 , 8 4 1 1 5 , 3 9 3 1 7 0 , 3 6 7 , , ' I ~0 0 6 F O R r . _ , - ! N P U T M , 4 ~ T i : R ' . . . . . . . - - - _ _ _ _ - _ _ - + - - _ _ ' j : O r T h e Y e a r E n d e J : ö e c e m b e r 3 1 ; 2 0 0 ~ - - - - - - - . . . - - f - - . . . ! IC O M P A N Y N A M E : A l b i o n T e i e p h O n e C o m p a n y , T n c . . , I S e p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s - . I - - - - - - . . . . . . . . . To t a l Id a h o I n t r a s t a t e , O p e r a t i o n =- = - - = = = - = - _ - = : : = _ _ _ _ O p e r a t i 0 n s _ _ _ . , " , I I De s c r i p t i o n N o t e L i n e . . S u b j e c t T o . I n t e r s t a t e , I n t r a s t a t e , . . . . . I -- - - - - - - - - N o . N o . - - - S e p a r a t i o n s - - - - - T o l l i T o l l l E A S , L o c a l ( O t h e r ) - - - - - - - - - - - I i Se p a r a t i o n P a r a m e t e r s ( 1 9 ) I - - - - - - ! I i P_ I ~ ' t D . ~ i n . l l t ~ o f . U s e j _ M . ( ) _ _ U ) . . - - - _ _ = = _ ~ ~ - . - 1 . _ = _ _ _ _ _ 9 0 , 1 8 4 , 1 1 2 _ _ _ , _ _ 2 . . . 5 . . 3 . . 4 . . . . 7 5 7 0 r . - . - _ _ _ . _ _ . 6 5 9 2 0 1 0 _ _ ~ ~ _ ~ ~ 3 ~ - i ~ 6 ~ = _ = 3 i 8 5 7 ¡ ¡ ~ = = - . - - . , = - = = - - - - l ~ - - _ _ _ _ _ - ' L _ _ _ _ - _ _ - - _ ~ ~ ~ F ; ~ ~ r - J a n u a r y T - - - - - - - - - - ~ - - - - - ~ : ~ ~ ~ % ~ ~ 0 . 2 8 ~ : ~ - - - - - - 0 . 0 ; ~ ~ r - 0 . 2 2 6 0 ~ - - - - - 0 . 4 ! ~ - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - . - - - - - - - - - - - - - - - - - - - - - - - - - - - . " " . . , . . . . . - - - - - - _ _ d _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - - - . - t . . Ba s e S P F - D e c e m b e r 3 1 4 . 1 . 0 0 0 0 0 0 0 . 2 5 1 0 . 2 5 1 _ , 0 . 5 =~ i ~ 2 n ~ ~ ! ~ ì : D ~ ~ ~ _ = _ ~ ~ ~ - - - - - n J : 1 0 ) - - 1 = - = ~ ~ _ _ - = - = f ; i i t - - ~ ~ % ~ ~ ~ = - - - - - - ~ - o . ~ : ~ t - - 0 . 1 - 3 0 ; 4 ~ _ = _ = ~ ~ ~ - ~ . ~ M j = = = ~ = = - ~ - I - . - . . - . . . . . . . . . _ n n _ - - - 1 - _ _ - - n _ _ n _ . ~ ~ ; ; B g ~ ; l ~ ! ~ ~ J ~ ~ S ~ : ~ : ~ M ~ n u t e s . : : : : t - - - ~ = - - - ~ 0 1 ~ l t ô ~ t i ~ n - - = = = ~ ~ = - = - - - - ~ J ~ ! 3 ~ T = - 2 0 3 8 7 . i 6 8 i - - - : - - ~ 3 ! ~ ~ 7 0 ~ ~ . , . I n . _ _ _ - _ _ _ - = - - _ _ _ _ _ _ ' _ _ _ u n _ .¡ i ~ ~ r ~ : - - = = - - = l i i = = 2 5 ~ 1 ; - = 6 5 9 ' V ~ ~ - - = I - ~ ~ - f ~ ~ - - 0' o 6,5 5 5 , 1 5 6 1 3, 5 0 0 , 5 5 6 1, 0 1 0 , 5 1 7 I To t a l O p e r a t i n g E x p e n s e s 2, 9 4 5 , 4 5 4 55 5 , 1 0 2 29 . OP E R A T I N G T A X E S D E T A I L 72 4 0 72 4 0 72 4 0 72 4 0 17 2 4 0 72 4 0 I Ge n e r a l T a x e s -- - - - - - - - - - - - - - - 'p r o J l e J " _ L _ _ _ Gr o s s H e , c e J p , t _ PU C F e e - - - - - - - - - - - - - - - - - Fr a n c h i s e F e e s -- - - - - - - - - - - - - - - - - - - - - - - Ot h e r -- T o t a I G e n e r a i T a x e s 14 1 , 6 2 3 o o o 1, 0 8 1 14 2 , 7 0 4 1. I 2.3~4.5.6. 72 X X I n c o m e f a x e s ¡ c a i c u i a t e d ) - - - - - - -- N e t I n c c ) m e B e f ö r e S i T & F I T - - - Le s s . j : i x e d C h a r g e s F j -- S U b t o t a i ( j i n e s i : ¡ ¡ ) . . . - - - - - - -- O t h e r s l T I 3 a s e A d ( : l / C l e c C ¡ : : Y - - - -- - S I T _ " T a ~ l i b l ! " J ~ ~ ( i r n e s , g + : . . O ) 72 3 0 S I T : C u r r e n t ( a t 6 . 9 3 % 1 -- - 6 t ¡ : i e r F I T B a s e Ac l d l D e d . ( + - ) - - - __ i = i T ' 1 l i x a b i e I n i : Q i r i ~ 9 . . 2 . . - ' I ) _ Gr o s s FI T a t 32 . 1 3 % 72 1 0 P - C l a i m e c T l f C ( - ) Su i t a x E l i m i n a i i o n ( - ) -- - - 7 2 2 o j : i , ' : c l i r r e n t l l i n e s 1 5 - 1 6 : 1 ' 7 ) Pa g e 4 o f 5 3, 0 5 4 , 6 0 0 40 4 0 4 . 68 , 6 4 ! o o o o 68 , 6 4 7 -3 5 , 9 0 6 ! __ _ _ J Q , 3 5 5 L ! -6 6 , 2 6 1 , 17 0 , 3 6 7 1 -4 4 8 , 5 9 3 _l 2 L 4 2 Z _: 5 7 6 . Q 2 ( ) o -5 7 6 , 0 2 0 55 , 5 6 8 -- - - - 0 -4 5 2 , 1 0 6 28 5 , 2 6 6 o o 28 5 , 2 6 6 .,IX ( ; ( ) n v e r s a t i o n M . . U . . . . . . . " , . . . . . . . _ _ _ _ _ _ _ _ _ . . _ . ! . . _ _ _ . . . . . . 3 1 , 9 3 9 , 5 8 0 . _ _ 2 5 3 . Q 6 3 1 3 L _ _ _ 6 6 ~ l 2 . f l 7 1 - I ~ . _ _ _ _ _ _ _ _ _ _ = = - = = _ _ _ _ L IX C o n v e r s a t i o n M i n u t e K i l o m e t e r s . . . 1 6 . . 1 9 0 , 1 9 1 , 5 3 8 1 5 9 6 4 5 5 9 2 1 3 0 5 4 5 9 4 6 1 - I _ . . 1 Ot ~ ¿ 6 ; £ t ~ : ~ e r s - ~ - - ~ ~ = . , _ : = = ~ = ~ ~ = ~ = _ ; ~ ~ = = . . . . . 4 6 8 8 - - - - = ~ _ E - - = - - - ~ = = I - I - . = ~ ~ ~ = - - = _ ~ ~ ~ = = _ ~ ~ ~ - ~ ~ = I - . : = = - ~ Un s e p a r a t e d L o o p C o s t l § 1 1 . 1 R O R ( 2 7 ) 1 8 . 1 4 1 0 5 8 6 1 i l l . G r o s s , B i l i e d R e v e n i i e s = = = - - - - - _ _ _ _ _ = - = = _ = - = = - - - - - - - . . . . _ _ _ _ _ _ _ _ _ . J _ : . = = _ = _ = = : ! = - = - _ _ - = = = = 1 - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . . 1 - - - - - - - - - - - - - - - - -M . e r k e t i n g A l I o c a t i o . r B a s i s _ _ _ _ _ _ _ J 2 . i L _ _ 1 _ 9 - " _ _ O _ _ _ ~ I _ , _ I _ . . . . - - - - - l - - - _ _ -P a y m e n t & C o l l e c t i o n - E n d U s e r ( 2 8 b ) 2 0 . 3 , 0 4 2 , 1 5 3 9 7 0 6 9 6 1 - - 0 8 7 3 9 1 - _ , 1 4 6 2 i 1 8 - - - - - - - - - - - , - - - - - - - - - - - 1 - - - - -- - - - - - - . - - - - - - - - - - - - - - . - - - - - - - - - - - - - . . . . . . . . . . - - - - - ~ - . - - - - - - n r - - - - - - - - - , . . . . 1 - - - - - . - - - - - - - - - - - - - - - - - - - - - . - - - - - , - - - - - - - - -P a y m e n t & C o l l e c t i o n - C X R ( 2 8 c ) 2 1 . 2 , 6 6 6 1 3 ~ ~ _ _ _ _ 1 3 3 3 1 _ _ I i ~7 S ~ i i ~ = = = ~ - - ~ ~ ~ ~ = - J : : ~ = = ~ ~ ~ ~ ? - ~ = ~ -B i l l i n g I n q u i r y - E n d U s e r ( 3 0 a ) 2 4 . 3 , 0 4 2 , 1 5 3 9 7 0 6 9 6 6 0 8 7 3 9 _ 1 4 6 2 7 1 8 . - - - - - - - . - B~ ! l ~ ~ : : ~ ~ ~ ~ ~ t A : ~ ~ - r ~ ~ ~ = = - ~ ~ - ~ ~ - - - - - 1 ~ ~ J 5 ; 4 7 i ~ ~ ~ I _ = - = ! ~ ; ; ~ ~ = - ~ = ¡ - = = = - - - = _ I . , . . I - - - ~ - ~ ~ ~ = ~ _ ~ ~ = ~ ~ ~ ~ ~ ~ = - = = ~ - = 'B . I G . . . . 3 ' E x p e n s e F a c t o r - M e s s a g e . . . . . . . . . . _ _ _ _ _ _ . . _ ( 3 a . _ 2 8 , . 0 . 9 1 . _ _ _ _ _ . J . . 4 . 2 7 9 4 . 1 0 . 1 6 3 9 7 5 . . . . . . . . 0 . . . 0 2 . 6 0 8 . . 5 . ' , i . . . , . . . . , . 0 . . , . . 2 . . 8 . . 8 . " . 9 5 . 1 . . . _ . . . _ . . . _ _ . . _ . . _ . . _ . . _ . _ . . - - . ' _ . _ . _ . . . _ . _ . _ . _ . _ . _ . . . _ . . . . _ _ . l . - - . _ _ . _ _ . . L _ _ _ _ - = . - . = = - . . - - ~P L S & S p e c i a l A c c e s s . _ . _ _ ~ _ _ . . _ 0 . 0 9 . . J l 0 ~ 4 7 . , 0 . 0 0 8 2 6 9 i 1 _ _ _ 1 1 1 Op e r a t o r Se r v i c e s Ex p e n s e - - F a c t o r 3 0 . 0 _ ~ ~ - - - . . - - - - - . ~ - . - - - - l - - . - . . - - ~ - - - - - - - - - . , - - - - - - - - - - -- - Ã c c e s s Min u t e s of Us e ( E n d O f f c e ) - - - - ~ - - 2 1 , 0 2 5 ~ i 5 ; ¡ 1 7 0 8 9 1 9 4 - . . - - - - 3 6 5 5 7 - - - - - ~ - - - - - . I - - - - - - - - - - - - - - - - - - - - Pa g e 5 o f 5 2/1 2 / 2 0 0 8 Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 RE V E N U E R E Q U I R E M E N T S U M M A R Y S- l St u d y Y e a r : 2 0 0 6 l' CO M P A N Y MS G PL MS G PL MS G PL MS G PL LIN E DE S C R I P T I O N SO U R C E (a ) (b ) (c ) (d ) (e ) (i j (9 ) (h ) (ì) 0) (k ) (I ) 1 N e t T e l e c o m P l a n t S- 2 , L n 4 6 16 , 3 0 7 , 1 4 2 6,8 8 1 , 2 4 6 1,7 8 8 , 2 0 3 (1 , 5 1 8 ) 2,7 1 2 , 6 8 7 19 5 , 5 3 2 56 0 , 8 3 0 4, 1 7 0 , 1 6 0 2 R a t e B a s e A d j u s t m e n t # 1 Re c o r d s 3 R A T E BA S E Ln 1 - 2 16 , 3 0 7 , 1 4 2 6,8 8 1 , 2 4 6 1,7 8 8 , 2 0 3 (1 , 5 1 8 ) 2,7 1 2 , 6 8 7 19 5 , 5 3 2 56 0 , 8 3 0 4, 1 7 0 , 1 6 0 4 R a t e o f R e t u r n Re c o r d s 9.8 6 8 3 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 8. 3 0 0 0 % 8.3 0 0 0 % 8.3 0 0 0 % 8.3 0 0 0 % 8. 3 0 0 0 % 8.3 0 0 0 % 8.3 0 0 0 % 5 R E T U R N O N R A T E B A S E Ln 3 * 4 1,6 0 9 , 2 4 2 77 4 , 1 4 0 20 1 , 1 7 3 (1 2 6 ) 22 5 , 1 5 3 16 , 2 2 9 46 , 5 4 9 34 6 , 1 2 3 6 R e t u r n A d j u s t m e n t # 1 Re c o r d s 7 N E T RE T U R N Ln 5 - 6 1,6 0 9 , 2 4 2 77 4 , 1 4 0 20 1 , 1 7 3 (1 2 6 ) :1 22 5 , 1 5 3 16 ' ~ 2 9 1 46 ' 5 4 9 1 :1 34 6 , 1 2 3 8 F i x e d C h a r g e s S- 1 0 , L n 2 4 27 2 , 1 4 5 11 4 , 7 1 7 30 , 0 0 0 (2 6 ) 45 , 3 1 5 3,2 8 7 9, 4 1 3 69 , 4 3 8 9 A m o r t i z a t i o n o f E x c e s s D e f T a x e s S- 1 0 , L n 4 7 10 C a p i t a l i z e d P a y r o l l T a x e s S- 1 0 , L n 5 0 11 D e p r e c i a t i o n A d j u s t m e n t S- 1 0 , L n 5 3 12 F I T A l l o w n c e s J O i s a l I o w a n c e s S- 1 4 , L n 2 2 13 In c A d j A l l o e o n 2 0 0 1 S- 1 0 , L n 5 9 + 6 0 14 In c A d j A l l o e o n B i g 3 E x p S- 1 0 , L n 6 1 + 6 2 15 T o t a l M i s e I n c Ad j u s t m e n t S- 1 0 , L n 6 3 16 A F T E R T A X I N C O M E No t e 1 1,3 3 7 , 0 9 7 65 9 , 4 2 3 17 1 , 1 7 3 (1 0 0 ) 17 9 , 8 3 8 12 , 9 4 2 37 , 1 3 5 27 6 , 6 8 5 17 S t a t e I n c o m e T a x Ln 5 2 14 6 , 6 9 3 72 , 3 4 5 18 , 7 7 9 (1 1 ) 19 , 7 3 0 1,4 2 0 4,0 7 4 30 , 3 5 5 18 S t a t e i r e A m o r t i z a t i o n S- 1 0 , L n 4 5 19 N e t F e d e r a l In c o m e T a x Ln 4 3 63 2 , 9 8 8 31 2 , 1 7 4 81 , 0 3 4 (4 7 ) 85 , 1 3 6 6,1 2 7 17 , 5 8 0 13 0 , 9 8 4 20 F e d e r a l l T C A m o r t i z a t i o n S- 1 0 , L n 4 4 21 O p e r a t i n g E x p e n s e s & T a x e s S- 3 , L n 1 7 6,7 1 4 , 8 7 0 3, 0 1 3 , 5 9 6 57 0 , 0 0 8 44 9 1,0 3 5 , 6 4 3 52 , 0 0 9 16 6 , 4 2 6 1,8 7 6 , 7 3 9 22 N o n o p e r a t i n g E x p e n s e s S- 1 0 , L n 1 7 + 1 8 23 U n c o l l e c i b l e s S- 1 0 , L n 5 7 24 O t h e r A d j u s t m e n t s ( N e t R R ) Re c o r d s 25 N E T R E V E N U E R E Q U I R E M E N T Ln 7 + 1 7 . . 2 3 - 2 4 1 9,1 0 3 , 7 9 3 1 4, 1 7 2 , 2 5 5 87 0 , 9 9 4 1 -I 26 5 -I 1,3 6 5 , 6 6 2 75 , 7 8 5 1 23 4 , 6 2 9 1 -I 2,3 8 4 , 2 0 1 26 G r o s s R e c i p t s T a x No t e 2 27 7 3 4 0 A l w F d s U s e d D u r C o n s t r S- 1 0 , L n 1 5 28 R E V E N U E R E Q U I R E M E N T Ln 2 5 + 2 6 - 2 7 1 9,1 0 3 , 7 9 3 1 4, 1 7 2 , 2 5 5 87 0 , 9 9 4 1 :\ 26 5 :1 1,3 6 5 , 6 6 2 75 , 7 8 5 1 23 4 , 6 2 9 1 :1 2,3 8 4 , 2 0 1 29 D i s t r b u t i o n o f L i n e 3 ( Ln 2 8 1 2 8 a 10 0 . 0 0 0 0 % 45 . 8 2 9 9 % 9.5 6 7 4 % 0.0 0 2 9 % 15 . 0 0 1 0 % 0.8 3 2 5 % 2. 5 7 7 3 % 26 . 1 8 9 1 % 1 IN C O M E T A X E S 1 30 N e t Re t u r n Ln 7 1 1'6 0 9 ' 2 4 2 1 77 4 , 1 4 0 20 1 ' 1 7 3 1 :1 (1 2 6 ) :1 22 5 , 1 5 3 16 ' 2 2 9 1 46 , 5 4 9 1 :1 34 6 , 1 2 3 31 F i x e d C h a r g e s Ln 8 27 2 , 1 4 5 11 4 , 7 1 7 30 , 0 0 0 (2 6 ) 45 , 3 1 5 3,2 8 7 9,4 1 3 69 , 4 3 8 32 A m o r t i z a t i o n o f E x c e s s D e f e r r e d T a x e s Ln 9 33 C a p i t a l i z e d P a y r o l l T a x e s Ln 1 0 34 D e p r e c i a t i o n A d j u s t m e n t Ln 1 1 35 F I T A l l o w a n c e s / D i s a l l o w a n c e s Ln 1 2 36 In c A d j A l l o c o n 2 0 0 1 Ln 1 3 37 In c A d j A l I o c o n B i g 3 E x p Ln 1 4 38 F e d e r a l l T C A m o r t i z a t i o n S- 1 0 , L n 4 4 39 To t a l In c o e A d j u s t m e n t s Ln 3 1 + 3 5 . . 3 7 27 2 , 1 4 5 11 4 , 7 1 7 30 , 0 0 0 (2 6 ) 45 , 3 1 5 3, 2 8 7 9,4 1 3 69 , 4 3 8 40 F e d e r a l T a x a b l e I n c o m e Ln 3 0 - 3 9 G r o s s U p 1,9 7 0 , 0 8 5 97 1 , 5 9 7 25 2 , 2 0 7 (1 4 7 ) 26 4 , 9 7 4 19 , 0 6 9 54 , 7 1 6 40 7 , 6 6 9 41 F e d e r a l In c o m e T a x 32 . 1 3 0 0 % 63 2 , 9 8 8 31 2 , 1 7 4 81 , 0 3 4 (4 7 ) 85 , 1 3 6 6, 1 2 7 17 , 5 8 0 13 0 , 9 8 4 42 F e d e r a l S u r - T a x Al l o c a t i o n Re c o r d s 43 N e t F e d e r a l In c o m e T a x Ln 4 1 - 4 2 - 3 8 63 2 , 9 8 8 31 2 , 1 7 4 81 , 0 3 4 (4 7 ) 85 , 1 3 6 6, 1 2 7 17 , 5 8 0 13 0 , 9 8 4 44 N e t R e t u r n Ln 3 0 1,6 0 9 , 2 4 2 77 4 , 1 4 0 20 1 , 1 7 3 (1 2 6 ) 22 5 , 1 5 3 16 , 2 2 9 46 , 5 4 9 34 6 , 1 2 3 45 F i x e d C h a r g e s Ln 3 1 27 2 , 1 4 5 11 4 , 7 1 7 30 , 0 0 0 (2 6 ) 45 , 3 1 5 3,2 8 7 9,4 1 3 69 , 4 3 8 46 O t h e r S I T A d j u s t m e n t s Re c o r d s 47 F e d e r a l In c o m e T a x Ln 4 1 63 2 , 9 8 8 31 2 , 1 7 4 81 , 0 3 4 (4 7 ) 85 , 1 3 6 6,1 2 7 17 , 5 8 0 13 0 , 9 8 4 48 S t a t e T a x a b l e I n c o m e Ln 4 4 - 4 7 G r o s s U p 2,1 1 6 , 7 7 7 1,0 4 3 , 9 4 2 27 0 , 9 8 6 (1 5 8 ) 28 4 , 7 0 4 20 , 8 9 58 , 7 9 0 43 8 , 0 2 4 49 S t a t e I n c o m e T a x 6. 9 3 0 0 % 14 6 , 6 9 3 72 , 3 4 5 18 , 7 7 9 (1 1 ) 19 , 7 3 0 1,4 2 0 4,0 7 4 30 , 3 5 5 50 S t a t e S u r - T a x Al l o c a t i o n Re c o r d s 51 S t a t e I T C A m o r t i z a t i o n S- 1 0 , L n 4 5 52 N e t S t a t e I n c o e T a x Ln 4 9 - 5 Q - 5 1 1 14 6 , 6 9 3 1 72 , 3 4 5 18 , 7 7 9 1 -I (1 1 ) -I 19 , 7 3 0 1,4 2 0 1 4, 0 7 4 1 -I 30 , 3 5 5 Pro p r i e t a r y I n f o m i a t i o n Mo s s A d a m s , L L P 10 f 2 3 2/1 2 1 2 0 0 8 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 SE P A R A T E D T E L E C O M M U N I C A T I O N S P L A N T S U M M A R Y S-2 St u d y Y e a r : 2 0 0 6 TO T A L In t e r L A T A in t r a L A T A In t e r L A T A In t r a CO M P A N Y MS G PL MS G PL MS G PL MS G PL LI N E DE S C R I P T I O N SO U R C E (a ) (b ) (e ) (d ) (e ) (D (g ) (h ) (i) ul (k ) (I) 1 2 1 1 0 L a n d & S u p p o r t A s s e t s S- 4 , L n 1 3 2, 7 5 4 , 3 0 5 1,1 5 6 , 5 7 7 26 2 , 6 5 8 44 4 , 8 8 4 26 , 6 5 1 77 , 7 5 1 78 5 , 7 8 4 22 2 1 0 C O E - S w i t c h i n g S- 5 , L n 3 6 5,0 1 7 , 1 1 1 4,2 6 4 , 5 4 5 75 2 , 5 6 7 3 2 2 2 0 C O E - O p e r a t o r S- 5 , L n 2 3 4 2 2 3 0 C O E - T r a n s m i s s i o n S- 5 , L n 7 6 7,6 3 8 , 2 6 1 2,1 8 5 , 6 3 7 1,2 6 0 , 1 8 1 1,3 4 1 , 8 8 7 92 , 1 5 3 47 8 , 8 7 9 2, 2 7 9 , 5 1 5 52 3 1 0 I n f o O r i g l T e r m E q u i p S-6 , L n 1 1 62 4 1 0 C & V V S- 7 , L n 4 2 21 , 7 8 5 , 9 2 7 8,0 1 2 , 2 6 7 2,0 2 4 , 2 3 9 4, 2 2 1 , 1 7 3 24 1 , 1 0 9 49 3 , 3 6 7 6,7 9 3 , 7 7 2 7 To t a l C O E , l O T , C & V V Ln 2 . . 6 34 , 4 4 1 , 2 8 9 14 , 4 6 2 , 4 4 9 3,2 8 4 , 4 2 0 5, 5 6 3 , 0 5 9 33 3 , 2 6 2 97 2 , 2 4 5 9, 8 2 5 , 8 5 4 8 Dis t r i b u t i o n o f L i n e 7 Lo 7 1 7 a 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 9 E q u a l A c c s s - I n v e s t m e n t 8-9 , L n 2 2 10 2 6 8 0 T a n g i b l e A s s e t s S-B , L n 3 1 11 T E L E C O M P L T I N S V C - E X C L 2 6 9 0 Ln 1 + 7 + 9 + 1 0 37 , 1 9 5 , 5 9 4 15 , 6 1 9 , 0 2 6 3,5 4 7 , 0 7 8 6, 0 0 7 , 9 4 3 35 9 , 9 1 3 1,0 4 9 , 9 9 6 10 , 6 1 1 , 6 3 7 12 D i s t r i b u t i o n o f L i n e 1 1 Ln 1 1 / 1 1 a 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 13 2 6 9 0 I n t a n g i b l e A s s e t s S- B , L n 3 5 14 2 0 0 1 T E L E C O M P L A N T I N S V C Ln 1 1 + 1 3 37 , 1 9 5 , 5 9 4 15 , 6 1 9 , 0 2 6 3,5 4 7 , 0 7 8 6, 0 0 7 , 9 4 3 35 9 , 9 1 3 1,0 4 9 , 9 9 6 10 , 6 1 1 , 6 3 7 15 Di s t r i b u t i o n o f L i n e 1 4 Ln 1 4 / 1 4 a 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 16 2 1 1 0 L a n d A s s e t s S- 4 , L n 1 2 17 2 0 0 1 T P I S x l a n d Ln 1 4 - 1 6 37 , 1 9 5 , 5 9 4 15 , 6 1 9 , 0 2 6 3,5 4 7 , 0 7 8 6, 0 0 7 , 9 4 3 35 9 , 9 1 3 1,0 4 9 , 9 9 6 10 , 6 1 1 , 6 3 7 18 Di s t r i b u t i o n o f L i n e 1 7 Ln 1 7 / 1 7 a 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 19 2 0 0 2 P r o p H i d F u t T e l e c o m U s e S- 9 , L n 6 84 , 9 0 2 35 , 6 5 1 8, 0 9 6 13 , 7 1 4 82 2 2, 3 9 7 24 , 2 2 2 20 2 0 0 3 P l a n t U n d e r C o n s t r u c t i o n S- 9 , l n 1 0 38 9 , 2 5 8 16 3 , 4 5 5 37 , 1 2 1 62 , 8 7 4 3, 7 6 7 10 , 9 8 8 11 1 , 0 5 2 21 2 0 0 5 T e l e c o m P l a n t A d j u s t m e n t S- 9 , L n 1 4 22 T O T A L T E L E C O M P L A N T Ln 1 4 + 1 9 . . 2 1 37 , 6 6 9 , 7 5 3 15 , 8 1 8 , 1 3 3 3,5 9 2 , 2 9 5 6, 0 8 4 , 5 3 0 36 4 , 5 0 1 1,0 6 3 , 3 8 2 10 , 7 4 6 , 9 1 2 23 1 2 2 0 M a t e r i a l s a n d S u p p l i e s S- 9 , L n 2 0 17 9 , 4 1 1 65 , 9 8 2 16 , 6 7 0 34 , 7 6 2 1,9 8 6 4,0 6 3 55 , 9 4 8 24 1 5 0 0 O t h e r J u r i s A s s e t s - N e t S- 1 5 , L n 1 4 25 3 1 0 0 A c c u m u l a t e d D e p r e c i a t i o n S- 1 5 , L n 2 8 21 , 6 2 6 , 8 9 4 9, 0 4 6 , 4 2 3 1,8 2 5 , 1 0 2 1,5 1 9 3,4 1 9 , 5 8 1 17 1 , 2 8 2 50 8 , 2 0 4 6, 6 5 4 , 7 8 2 26 E q u a l A c c s s - A c e u m D e p r e c i a t i o n S- 9 , L n 2 4 27 3 2 0 0 A c c D e p - H l d f o r F u t U s e S- 1 5 , L n 3 0 28 3 4 0 0 A c c u m A m o r t - T a n g i b l e S- 1 5 , L n 3 1 . 3 2 29 3 5 0 0 A c c u m A m o r t - I n t a n g i b l e S- 1 5 , L n 3 3 30 3 6 0 0 A c c u m A m o r t - o h e r S- 1 5 , L n 3 4 31 4 1 0 0 N e t Cu r De f O p In c Ta x e s S- 1 5 , L n 4 6 32 4 3 4 0 N o n c u r D e f O p e r I n c T a x S- 1 5 , L n 6 6 I 29 6 , 5 6 3 1 12 4 , 5 3 1 28 , 2 8 1 1 -I -I 47 , 9 0 2 2,8 7 0 1 8, 3 7 2 84 , 6 0 7 33 E q u a l A c c e s s ~ D e f e r r e d O p e r I n c T a x e s S- 9 , L n 2 5 34 4 3 6 0 O t h e r D e f e r r e d C r e d i t s - N e t S- 1 5 , L n 6 7 35 4 3 7 0 O t h e r J u r L i a b & D e f C r e d i t s - N e t S- 1 5 , L n 6 9 36 N E T T E L E C O M P L A N T A Ln 2 2 + 2 3 - 2 4 . . 3 5 I 15 ' 9 2 5 ' 7 0 8 1 6, 7 1 3 , 1 6 0 1'7 5 5 ' 5 8 2 1 ;1 (1 , 5 1 9 ) :1 2,6 5 1 , 8 1 0 19 2 , 3 3 6 1 55 0 , 8 6 8 4, 0 6 3 , 4 7 0 37 D i s t r i b u t i o n o f L i n e 3 6 ln 3 6 / 3 G a 10 0 . 0 0 0 0 % 42 . 1 5 3 0 % 11 . 0 2 3 6 % (0 . 0 0 9 5 % ) 16 . 6 5 1 1 % 1.2 0 7 7 % 3.4 5 9 0 % 25 . 5 1 5 2 % 38 1 4 0 2 R u r a l T e l B a n k S t o c k B S-9 , L n 1 6 39 C a s h W o r k i n g C a p i t a l C S-9 , L n 2 1 44 9 , 9 7 3 19 7 , 3 7 6 38 , 4 8 5 1 -I 72 , 1 0 4 3,7 7 0 1 11 , 7 6 1 12 6 , 4 7 6 40 E q u a l A c c e s s ~ U n a m o r t i z e d E x p e n s e s 0 S-9 , L n 2 6 41 I n v e s t m e n t A l l o w / D i s a l l o w E S-9 , L n 3 1 42 A c c u m D e p r J A m o r t A l l o w / D i s a l l o w F S-1 5 , L n 7 2 43 4 0 4 0 C u s t o m e r D e p o s i t s G S- 1 5 , L n 3 7 I 5'0 0 5 1 2,1 0 2 47 7 1 ~ I ~ I 80 8 48 1 14 1 1, 4 2 8 44 4 3 1 0 O t h e r L o n g - T e r m L i a b . H S- 1 5 , L n 5 7 63 , 5 3 4 27 , 1 8 9 5,3 8 6 10 , 4 1 8 52 5 1,6 5 7 18 , 3 5 8 45 O t h e r T e l e c o m P I A d j u s t I Re c o r d s 46 N E T T E L E C O M P L T & O T H R A T E B A S E I T E M S A+ B . . F + I - ( G + H ) 16 , 3 0 7 , 1 4 2 6,8 8 1 , 2 4 6 1,7 8 8 , 2 0 3 (1 , 5 1 8 ) 2,7 1 2 , 6 8 7 19 5 , 5 3 2 56 0 , 8 3 0 4,1 7 0 , 1 6 0 47 D i s t r i b u t i o n o f L i n e 4 6 Ln 4 6 / 4 6 a 10 0 . 0 0 0 0 % 42 . 1 9 7 7 % 10 . 9 6 5 8 % (0 . 0 0 9 3 % ) 16 . 6 3 5 0 % 1. 1 9 9 1 % 3.4 3 9 2 % 25 . 5 7 2 6 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 20 f 2 3 2/1 2 1 2 0 0 8 Al b i o n T e l e p h o n e C o m p a n y w R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 SE P A R A T E D E X P E N S E S U M M A R Y S- 3 Stu d y Y e a r : 2 0 0 6 ~. ! ~ TO T A L In t e r L T A CO M P A N Y MS G PL MS G PL MS G PL I MS G PL LIN E DE S C R I P T I O N SO U R C E (a ) (b ) (e ) (d ) (e ) (fj (9 ) (h ) (i ) I ül (k ) (I ) 1 P i t S p e c E x p A c c s 6 2 1 0 , 6 2 2 0 2 62 3 0 , 6 3 1 0 , 6 4 1 0 S- 1 1 , L n 3 0 2,0 3 1 , 8 2 5 88 0 , 0 6 4 19 5 , 0 2 2 31 1 , 5 7 7 18 , 9 4 4 60 , 2 3 3 56 5 , 9 8 5 3 P I N o n s p e c A c c u n t 6 5 3 0 S- 1 2 , L n 1 9 20 4 , 9 9 0 86 , 0 7 9 19 , 5 4 8 33 , 1 1 1 1,9 8 4 5,7 8 7 58 , 4 8 2 4 C u s t O p e r A c c t s 6 6 1 0 , 6 6 2 0 S-1 3 , l n 5 7 29 4 , 0 9 4 11 6 , 9 3 4 70 , 3 1 8 10 6 , 8 2 5 T O T A L B I G T H R E E E X P E N S E S Ln 2 . . 4 2,5 3 0 , 9 0 9 1, 0 8 3 , 0 7 6 21 4 , 5 7 0 41 5 , 0 0 6 20 , 9 2 7 66 , 0 2 0 73 1 , 3 0 9 6 D i s t r i b u t i o n o f L i n e 5 Ln S / 5 a 10 0 . 0 0 0 0 % 42 . 7 9 4 0 % 8. 4 7 8 0 % 16 . 3 9 7 5 % 0.8 2 6 9 % 2~ 6 0 8 5 % 28 . 8 9 5 1 % 7 P l a n t S p e c i f i c E x p e n s e s S- 1 1 , L n 3 1 2,1 8 3 , 1 7 2 94 3 , 6 1 7 20 9 , 4 5 5 33 6 , 0 2 3 20 , 4 0 8 64 , 5 0 6 60 9 , 1 6 3 8 P l a n t N o n s p e c i f i c E x p e n s e s S- 1 2 , L n 4 4 2,7 4 2 , 4 1 8 1, 2 8 8 , 4 5 6 23 6 , 1 2 2 44 9 39 1 , 8 9 2 19 , 4 1 2 63 , 7 9 2 74 2 , 2 9 4 9 C u s t o m e r O p e r a t i o n s E x p e n s e s S- 1 3 , L n 5 7 29 4 , 0 9 4 11 6 , 9 3 4 70 , 3 1 8 10 6 , 8 4 2 10 C o r p o r a t e O p e r a t i o n s E x p e n s e s S- 1 4 , L n 1 6 1,3 3 5 , 4 7 1 59 6 , 4 4 6 10 9 , 5 2 4 21 1 , 8 3 4 10 , 6 8 2 33 , 6 9 9 37 3 , 2 8 6 11 7 3 0 0 C o n t r i b u t i o n s S- 1 0 , L n 1 6 16 , 8 0 4 7,5 0 5 1,3 7 8 2,6 6 5 13 4 42 4 4,6 9 7 12 T O T A L O P E R A T I N G E X P E N S E S Ln 7 . . 1 1 6,5 7 1 , 9 5 9 2, 9 5 2 , 9 5 8 55 6 , 4 8 0 44 9 1,0 1 2 , 7 3 3 50 , 6 3 6 16 2 , 4 2 1 1,8 3 6 , 2 8 2 13 O p e r a t i n g T a x e s S- 1 4 , L n 2 6 14 2 , 7 0 4 60 , 5 5 1 13 , 5 0 6 22 , 8 7 5 1,3 7 0 3,9 9 8 40 , 4 0 4 14 E q u a l A c c e s s E x p e n s e s S- 1 4 , L n 3 5 15 E x p e n s e A l l o w a n c e s / D i s a l l o w a n c e s S- 1 4 , L n 4 0 20 7 87 23 (0 ) 34 3 7 53 16 5 2 4 0 R e n t R e v e n u e s S- 1 0 , L n 4 3 17 T O T A L O P E R A T I N G E X P & T A X E S Ln 1 2 + 1 3 . . 1 5 - 1 6 6,7 1 4 , 8 7 0 3,0 1 3 , 5 9 6 57 0 , 0 0 8 44 9 1,0 3 5 , 6 4 3 52 , 0 0 9 16 6 , 4 2 6 1,8 7 6 , 7 3 9 18 D i s t r i b u t i o n o f L i n e 1 7 Ln 1 7 / 1 7 a 10 0 . 0 0 0 0 % 44 . 8 7 9 4 % 8.4 8 8 7 % 0.0 0 6 7 % 15 . 4 2 3 1 % 0.7 7 4 5 % 2. 4 7 8 5 % 27 . 9 4 9 0 % 19 T o t a l D e p r & Am o r t S- 1 2 , L n 4 3 2,5 0 1 , 3 1 3 1,1 6 6 , 2 6 2 21 6 , 5 7 4 44 9 35 8 , 7 8 2 17 , 4 2 8 58 , 0 0 6 68 3 , 8 1 2 20 F i x e d C h a r g e s S- 1 0 , L n 2 4 27 2 , 1 4 5 11 4 , 7 1 7 30 , 0 0 0 (2 6 ) 45 , 3 1 5 3,2 8 7 9,4 1 3 69 , 4 3 8 21 T o t a l O p e r a t i n g R e v e n u e S- 1 4 , L n 3 3 22 T o t a l O p e r a t i n g E x p e n s e & T a x e s Ln 1 7 6,7 1 4 , 8 7 0 3,0 1 3 , 5 9 6 57 0 , 0 8 44 9 1,0 3 5 , 6 4 3 52 , 0 0 9 16 6 , 4 2 6 1,8 7 6 , 7 3 9 23 U n c o l l e c t i b t e s S- 1 0 , L n 5 7 24 F i x e d C h a r g e s Ln 2 0 27 2 , 1 4 5 11 4 , 7 1 7 30 , 0 0 0 (2 6 ) 45 , 3 1 5 3,2 8 7 9,4 1 3 69 , 4 3 8 25 I n c o m e A d j u s t m e n t s S- 1 0 , L n 6 3 26 N e t I n c o m e Ln 2 1 . . 2 5 (6 , 9 8 7 , 0 1 5 ) (3 , 1 2 8 , 3 1 3 ) (6 0 0 , 0 8 ) (4 2 3 ) (1 , 0 8 0 , 9 5 8 ) (5 5 , 2 9 6 ) (1 7 5 , 8 4 0 ) (1 , 9 4 6 , 1 7 7 ) 27 D i s t r i b u t i o n o f L i n e 2 6 Ln 2 6 / 2 6 a 10 0 . 0 0 0 0 % 44 . 7 7 3 2 % 8.5 8 7 5 % 0.0 0 6 1 % 15 . 4 7 1 0 % 0.7 9 1 4 % 2. 5 1 6 7 % 27 . 8 5 4 2 % 28 T O T A L C A S H O P E R E X P E N S E S Ln 1 7 + 1 6 . 1 9 + 2 0 4,4 8 5 , 7 0 2 1,9 6 2 , 0 5 1 38 3 , 4 3 4 (2 6 ) 72 2 , 1 7 7 37 , 8 6 8 11 7 , 8 3 4 1,2 6 2 , 3 6 5 29 D i s t r i b u t i o n o f L i n e 2 8 Ln 2 8 / 2 8 a 10 0 . 0 0 0 0 % 43 . 7 4 0 1 % 8.5 4 7 9 % (0 . 0 0 0 6 % ) 16 . 0 9 9 5 % 0.8 4 4 2 % 2. 6 2 6 9 % 28 . 1 4 2 0 % I IN C O M E T A X C A L C U L A T I O N I 31 O t h e r O p e r a t i n g I n c o m e S-1 4 , L n 3 2 32 A F U D C S-1 0 , L n 1 5 33 O p e r a t i n g R e v e n u e S-1 4 , L n 3 3 - L n 3 1 34 U n c o l l e c t i b l e R e v e n u e S-1 0 , L n 5 7 34 I n c o m e E f f e c t J u r i s d i c t i o n a l D i f f e r e n c e S-1 0 , L n 6 0 34 I R S I n c o m e A d j u s t m e n t S-1 0 , L n 6 2 35 T O T A L R E V E N U E & O T H E R I N C O M E Ln 3 1 . . 3 4 36 C o n t r i b u t i o n s S-1 0 , L n 1 6 16 , 8 0 4 7,5 0 5 1,3 7 8 2,6 6 5 13 4 42 4 4,6 9 7 37 O p e r a i n g E x p e n s e s Ln 1 2 - L n 1 1 6,5 5 5 , 1 5 5 2,9 4 5 , 4 5 3 55 5 , 1 0 2 44 9 1,0 1 0 , 0 6 8 50 , 5 0 2 16 1 , 9 9 7 1,8 3 1 , 5 8 5 38 O p e r a t i n g T a x e s S- 1 4 , L n 2 6 14 2 , 7 0 4 60 , 5 5 1 13 , 5 0 6 22 , 8 7 5 1, 3 7 0 3,9 9 8 40 , 4 0 4 39 F i x e d C h a r g e s S- 1 0 , L n 2 4 27 2 , 1 4 5 11 4 , 7 1 7 30 , 0 0 0 (2 6 ) 45 , 3 1 5 3,2 8 7 9,4 1 3 69 , 4 3 8 40 T O T A L O P E R A T I N G E X P E N S E S Ln 3 6 . . 3 9 6,9 8 6 , 8 0 8 3,1 2 8 , 2 2 6 59 9 , 9 8 5 42 3 1,0 8 0 , 9 2 4 55 , 2 9 3 17 5 , 8 3 2 1,9 4 6 , 1 2 4 41 S t a t e T a x a b l e I n c o m e Ln 3 5 - L n 4 0 (6 , 9 8 6 , 8 0 8 ) (3 , 1 2 8 , 2 2 6 ) (5 9 9 , 9 8 5 ) (4 2 3 ) (1 , 0 8 0 , 9 2 4 ) (5 5 , 2 9 3 ) (1 7 5 , 8 3 2 ) (1 , 9 4 6 , 1 2 4 ) 42 S t a t e I n c o m e T a x 6.9 3 0 0 % (4 8 4 , 1 8 6 ) (2 1 6 , 7 8 6 ) (4 1 , 5 7 9 ) (2 9 ) (7 4 , 9 0 8 ) (3 , 8 3 2 ) (1 2 , 1 8 5 ) (1 3 4 , 8 6 6 ) 43 F e d e r a l T a x a b l e I n c o m e Ln 3 5 - L n 4 0 (6 , 9 8 6 , 8 0 8 ) (3 , 1 2 8 , 2 2 6 ) (5 9 9 , 9 8 5 ) (4 2 3 ) (1 , 0 8 0 , 9 2 4 ) (5 5 , 2 9 3 ) (1 7 5 , 8 3 2 ) (1 , 9 4 6 , 1 2 4 ) 44 S t a t e I n c o m e T a x Ln 4 2 (4 8 4 , 1 8 6 ) (2 1 6 , 7 8 6 ) (4 1 , 5 7 9 ) (2 9 ) (7 4 , 9 0 8 ) (3 , 8 3 2 ) (1 2 , 1 8 5 ) (1 3 4 , 8 6 6 ) 45 N e t F e d e r a l T a x a b l e I n c o m e Ln 4 3 - L n 4 4 (6 , 5 0 2 , 6 2 2 ) (2 , 9 1 1 , 4 4 0 ) (5 5 8 , 4 0 6 ) (3 9 4 ) (1 , 0 0 6 , 0 1 6 ) (5 1 , 4 6 2 ) (1 6 3 , 6 4 7 ) (1 , 8 1 1 , 2 5 8 ) 46 F e d e r a l In c o m e T a x 32 . 1 3 0 0 % (2 , 0 8 9 , 2 9 3 ) (9 3 5 , 4 4 6 ) (1 7 9 , 4 1 6 ) (1 2 7 ) (3 2 3 , 2 3 3 ) (1 6 , 5 3 5 ) (5 2 , 5 8 0 ) (5 8 1 , 9 5 7 ) 47 A m o r t i z a t i o n o f I n v e s t m e n t T a x C r e d i t S- 1 0 , L n 4 4 48 F e d e r a l In c o m e T a x Ln 4 6 - L n 4 7 (2 , 0 8 9 , 2 9 3 ) (9 3 5 , 4 4 6 ) (1 7 9 , 4 1 6 ) (1 2 7 ) (3 2 3 , 2 3 3 ) (1 6 , 5 3 5 ) (5 2 , 5 8 0 ) (5 8 1 , 9 5 7 Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 30 f 2 3 Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 C a r r i e r C l a s s i f i c a t i o n 2 B i g T h r e e E x p e n s e s D i s t r 3 T o t a l C O E , l O T , C & W F D i s t r LA N D & S U P P O R T A S S E T S S E P A R A T I O N 4 2 1 1 0 L a n d & S u p p o r t A s s e t s 5 S u p p o r t A s s e t s . J o ì n t x l G S F - B & C 6 G e n e r a l S u p p o r t F a c i l i t i e s ~ B & C 7 D i r e c t A s s i g n m e n t 8 T o t a l S u p p o r t A s s e t s 9 D i s t r i b u t i o n o f L i n e 8 10 L a n d 11 D i r e c t A s s i g n m e n t 12 T o t a l L a n d 13 T O T A L L A D & S U P P O R T A S S E T S 14 D i s t r i b u t i o n o f L i n e 1 3 No t e 1 ; I f C a r r i e r C l a s s ì f i c a t o n = A , t h e n If C a r r i e r C l a s s i f i c a t o n = B , t h e n Pro p r i e t a r y I n f o r m a t i o n SO U R C E Re c o r d s S- 3 , L n 6 S- 2 , L n 8 No t e 1 No t e 1 Di r e c t Ln 5 . . 7 Ln 8 / 8 a No t e 1 Di r e c t Ln 1 0 . . 1 1 Ln 8 + 1 2 Ln 1 3 / 1 3 a Ln 5 a * 2 , L n 6 a * 2 , L n 1 0 a * 2 Ln 5 a * 3 , L n 6 a * 3 , L n 1 0 a * 3 GE N E R A L S U P P O R T F A C I L I T I E S TO T A L CO M P A N Y (a ) 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 2,7 5 4 , 3 0 5 2,7 5 4 , 3 0 5 10 0 . 0 0 0 0 % 2,7 5 4 , 3 0 5 10 0 . 0 0 0 0 % MS G (b ) 42 . 7 9 4 0 % 41 . 9 9 1 6 % 1,1 5 6 , 5 7 7 1,1 5 6 , 5 7 7 41 . 9 9 1 6 % 1,1 5 6 , 5 7 7 41 . 9 9 1 6 % PL (e )8.4 7 8 0 % 9.5 3 6 3 % 26 2 , 6 5 8 26 2 , 6 5 8 9.5 3 6 3 % 26 2 , 6 5 8 9.5 3 6 3 % 2/ 1 2 / 2 0 0 8 S- 4 PL MS G PL g) (h ) (i ) uJ (k ) (I) 16 . 3 9 7 5 % 0.8 2 6 9 % 2.6 0 8 5 % 28 . 8 9 5 1 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 44 4 , 8 8 4 26 , 6 5 1 77 7 5 1 78 5 , 7 8 4 44 4 , 8 8 4 26 , 6 5 1 77 , 7 5 1 78 5 , 7 8 4 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 44 4 , 8 8 4 26 , 6 5 1 77 , 7 5 1 78 5 , 7 8 4 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % Mo s s A d a m s , L L P 40 f 2 3 Alb i o n T e l e p h o n e C o m p a n y M R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 W S W S P c t M S w i t c h b o a r d s 2 W S W S P c t M D i r e c t o r y A s s i s t a n c e 3 S u b L i n e M O U P c t 4 S O B T o l l M O U P e t 5 W S W S P c t M T S P S O p e r P o s i t i o n 6 R e a l P r o c e s s o r T i m e P c t M R T A 7 R e a l P r o c e s s o r T i m e P c t M T S P S 8 R E L M O U ' s - T a n d e m S w i t c h i n g 9 T r a n s M e a s u r e d O E M P c t CO E C A T E G O R I E S 1 - 3 S E P A R A T I O N 10 2 2 2 0 O p e r a t o r S y s t e m s 11 C a t 1 M O p e r a t o r S y s t e m s 12 L o c , T o l I , D S A , D S B , a n d 13 T r a f f c S w i t c h b o a r d s 14 A u x - D i r e c t A s s i s t 15 A u x - I n t e r c e p t 16 J t E x c h & T o l l S O B 17 T S P S M O p e r P o s i t i o n 18 T S P S - R T A 19 T S P S - C t h e r 20 D i r e c t A s s i g n m e n t 21 T o t a l C a t 1 22 D i s t r i b u t i o n o f L i n e 2 1 23 T O T A L C O E - O P E R A T O R 24 D i s t r i b u t i o n o f L i n e 2 3 25 2 2 1 0 C e n t r a l O f f c e S w i t c h i n g 26 C a t 2 - T a n d e m S w i t c h i n g 27 D i r e c t A s s i g n m e n t 28 T o t a l C a t 2 29 D i s t r i b u t i o n o f L i n e 2 8 30 31 C a t 3 M L o c a l S w i t c h i n g - T S 32 C a t 3 M L o c a i S w i t c h i n g M N T S 33 D i r e c t A s s i g n m e n t 34 T o t a l C a t 3 35 D i s t r i b u t i o n o f L i n e 3 4 36 T O T A L C O E - S W I T C H I N G 37 D i s t r i b u t i o n o f L i n e 3 6 Pr o p r i e t a r y I n f o r m a t i o n SO U R C E Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Ln 1 3 a * 1 Ln 1 4 a * 2 Ln 1 5 a * 3 Ln 1 6 a * 4 Ln 1 7 a * 5 Ln 1 8 a * 6 Ln 1 9 a * 7 Dir e c t Ln 1 3 . . 2 0 Ln 2 1 1 2 1 a Ln 2 1 Ln 2 3 f 2 3 a Ln 2 6 a * 8 Di r e c t Ln 2 6 . . 2 7 Ln 2 8 1 2 8 a Ln 3 1 a * 9 Ln 3 2 a * g Di r e c t Ln 3 1 . . 3 3 Ln 3 4 f 3 4 a Ln 2 8 + 3 4 Ln 3 6 f 3 6 a TO T A L CO M P A N Y .2 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 5,0 1 7 , 1 1 1 5,0 1 7 , 1 1 1 10 0 . 0 0 0 0 % 5,0 1 7 , 1 1 1 10 0 . 0 0 0 0 % CE N T R A L O F F I C E E Q U I P M E N T 4, 2 6 4 , 5 4 5 85 . 0 0 0 0 % 4, 2 6 4 , 5 4 5 85 . 0 0 0 0 % 21 1 2 1 2 0 0 8 75 2 , 5 6 7 15 . 0 0 0 0 % 75 2 , 5 6 7 15 . 0 0 0 0 % Mo s s A d a m s , L L P 50 f 2 3 Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 21 1 2 / 2 0 0 8 CE N T R A L O F F I C E E Q U I P M E N T SO U R C E SE P A R A T T O N S - F A C T O R S TO T A L CO M P A N Y (a ) 38 W B L i n e 39 E x T r k W B 40 R E L M O V ' s - E x c h a n g e T r u n k 41 G r o s s A l l o c a t o r ( T r a n s S P F ) 42 C O E C a t 4 . 2 1 - F u r n t o O t h e r s P e t 43 I n t e r e x c h a n g e T r k W B CO E C A T E G O R Y 4 S E P A R A T I O N 44 2 2 3 0 C e n t r a l O f c e - T r a n s m i s s i o n 45 C a t 4 . 1 - E x c h a n g e C i r c u i t 46 4 . 1 1 W l d e b a n d - L i n e 47 D i r e c t A s s i g n m e n t 48 4 . 1 2 E x c h T r u n k - E A S 49 E x T r k x I - B a s i c 50 E x T r k x N - B a s i c D A 51 E x T r k W B 52 E x c h T r k W B - D i r e e t A s s i g n m e n t 53 4 . 1 3 E x L i n e x I 54 J o i n t M S G 55 P L & L o c l 56 D i r e c t A s s i g n m e n t - B a s i c / S p e c i a l 57 C a t 4 . 2 - l n t e r e x c h a n g e 58 4 . 2 1 F u m t o O t h e r s 59 4 . 2 2 W l d e b a n d 60 J o i n t M S G 61 P L 62 D i r e c t A s s i g n m e n t LI N E D E S C R I P T I O N AS S I G N M E N T O F C O E C A T 4 . 1 3 63 C O E C a t 4 . 1 3 W o r k i n g L o o p s 64 C O E C a t 4 . 1 3 A s s i a n e d I n v e s t Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Ln 4 6 a * 3 8 Di r e c t Di r e c t Ln 4 9 a * 4 0 Di r e c t Ln 5 1 a * 3 9 Di r e c t Ln 6 4 b * 4 1 Ln 6 4 c . . i Di r e c t Ln 5 8 a * 4 2 Ln 6 0 a * 4 3 Di r e c t Di r e c t Re c o r d s No t e 1 10 0 . 0 0 0 0 % 50 . 0 0 0 0 % 47 8 , 8 7 9 _ _ 2,0 8 4 , 3 3 5 EA S Us e r De f i n e d h Ot h e r 4,7 7 5 4,2 4 6 , 4 8 6 4,6 8 8 4, 1 6 6 , 6 7 1 56 49 , 8 0 2 32 28 , 0 1 3 No t e 1: Co s t p e r l o o p = 88 9 . 3 1 6 4 Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 60 1 2 3 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 2/ 1 2 1 2 0 0 8 CE N T R A L O F F I C E E O U I P M E N T CO M P A N Y (a J Re c o r d s 10 0 . 0 0 0 0 % 79 . 2 3 2 0 % Re c o r d s 10 0 . 0 0 0 0 % 60 . 3 2 2 0 % Ln 8 2 * 6 4 82 0 , 5 8 7 65 0 , 1 6 7 Ln 8 2 c . . i 10 4 , 7 7 9 Dir e c t Ln 7 2 a * 6 6 81 7 , 7 8 1 I 49 3 , 3 0 2 Di r e c Dir e c t Ln 4 6 . . 6 2 + 6 7 . . 7 4 7,6 3 8 , 2 5 1 2,1 8 5 , 6 3 7 1,2 6 0 , 1 8 1 Ln 7 5 7,6 3 8 , 2 5 1 2,1 8 5 , 6 3 7 1,2 6 0 , 1 8 1 Ln 7 6 1 7 6 a 10 0 . 0 0 0 0 % 28 . 6 1 4 4 % 16 . 4 9 8 3 % Ln 2 3 + 3 6 + 7 6 12 , 6 5 5 , 3 6 3 6,4 5 0 , 1 8 2 1,2 6 0 , 1 8 1 Ln 7 8 1 7 8 a 10 0 . 0 0 0 0 % 50 . 9 6 8 0 % 9.9 5 7 7 % SE P A R A T I O N S - F A C T O R S 65 C o n v e r s a t i o n M i n u t e s P c t - - - 66 H o s t / R e m o t e M O U M i l e s P e t CO E C A T E G O R Y 4 S E P A R A T I O N ( C o n t 67 4 . 2 3 A l l O t h e r 68 J o i n t M S G 69 P L , T W X & L o c a l 70 D i r e c t A s s i g n m e n t ~ N o n a c c e s s 71 C a t 4 . 3 - H o s t l R e m o t e M S G 72 J o i n t ( x l A T S ) 73 W A T S 74 D i r e e t A s s i g n m e n t 75 T o t a l C a t 4 76 T O T A L C O E - T R A N S M I S S I O N 77 D i s t r i b u t i o n o f L i n e 7 6 78 T O T A L C E N T R A L O F F I C E E O U I P 79 D i s t r i b u t i o n o f L i n e 7 8 LI N E D E S C R I P T I O N AS S I G N M E N T O F C O E C A T 4 . 2 3 80 C O E C a t 4 . 2 3 T e r m s - -J o i n t M e s s a g e T o t a l T e r m i n a t i o n s 81 C O E C a t 4 . 2 3 - T e r m s 82 ~ J o i n t M e s s a g e T o t a l A l l o c a t e d I n v e s t m e n t No t e 1: Co s t p e r t e r m i n a t i o n = Pr o p r i e t a r y I n f o r m a t i o n 1, 3 4 1 , 8 8 7 92 , 1 5 3 47 8 , 8 7 9 2,2 7 9 , 5 1 5 1, 3 4 1 , 8 8 7 92 , 1 5 3 47 8 , 8 7 9 2,2 7 9 , 5 1 5 17 . 5 6 8 0 % 1. 2 0 6 5 % 6.2 6 9 5 % 29 , 8 4 3 4 % 1, 3 4 1 , 8 8 7 92 , 1 5 3 47 8 , 8 7 9 3,0 3 2 , 0 8 2 10 . 6 0 3 3 % 0.7 2 8 2 % 3.7 8 4 0 % 23 . 9 5 8 9 % SO U R C E TO T A L CO M P A N Y (a ) Re c o r d s No t e 1 No t e 1 2,2 0 5 . 8 8 MS G (b ) PL (e ) MS G (d ) 42 0 37 2 92 5 , 3 6 6 82 0 , 5 8 7 Mo s s A d a m s , L L P 7 o f 2 3 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 G r o s s A l l o c a t o r ( T r a n s S P F ) 2 R E L M O U ' s - C o i n l e s s P u b T e l lO T E Q U I P M E N T S E P A R A T I O N 3 2 3 1 0 I n f o O r i g l T e r m E q u i p 4 C a t 1 - 0 t h e r l O T 5 C o i n l s P u b T e l E q 6 D i r e c t A s s i g n m e n t 7 T o t a l C a t e g o r y 1 8 D i s t r i b u t i o n o f L i n e 7 9 C a t 2 - C u s t P r e m E q u i p 10 D i s t r i b u t i o n o f L i n e 9 11 T O T A L I N F O O R I G I T E R M E Q U I P 12 D i s t r i b u t i o n o f L i n e 1 1 Pr o p r i e t a r y I n f o r m a t i o n SO U R C E Re c o r d s Re c o r d s Ln 4 a * l Ln 5 a * 2 Dir e c t Ln 4 . . 6 Ln 7 1 7 a Di r e c t Ln 9 / 9 a Ln 7 + 9 Ln 1 1 / 1 1 a 21 1 2 1 2 0 0 8 IN F O R M A T I O N O R I G I N I T E R M E Q U I P M E N T S- 6 TO T A L CO M P A N Y (a J Mo s s A d a m s , L L P 8 o f 23 2/ 1 2 / 2 0 0 8 Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 CA B L E A N D W I R E F A C i l i T I E S TO T A L CO M P A N Y (a ) .T A SO U R C E MS G (b ) ü) (I ) SE j ' A R A T I O N S F A C T O R S 1 G r o s s A l l o c a t o r P e t ( T r a n s S P F ) 2 R E L M O U ' s - E x c h a n g e T r u n k 3 W B L i n e 4 M O U P e t - E x 1 r k w e C& W F C A T 1 - 2 S E P A R A T I O N 52 4 1 0 C a b l e & W i r e F a c i l i t i e s 6 C a t 1 - E x c h L i n e x J 7 1 . 1 In t r a P L & W A T S 8 1 . 2 In t e r P L & W A r S 9 1 . 3 J o i n t l y U s e d 10 D i r e c t A s s i g n m e n t 11 T o t a l C a t e g o r y 1 Re c o r d s Re c o r d s Re c o r d s Re c o r d s 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 50 . 0 0 0 0 % 10 0 . 0 0 0 0 % Ln 2 2 e . . i Ln 2 2 c . . d Ln 2 2 b ' 1 Dir e c t Ln 7 . . 1 0 12 C a t 2 - W B & E x c h T r u n k 13 E x T r k - j o i n t m e s s a g e 14 E x Tr k - E A S 15 E x Lin e WB 16 W B L i n e 17 W B T r u n k 18 W B T r u n k D A 19 T o t a l C a t e g o r y 2 Ln 1 3 a ~ 2 Dir e c t Ln 1 5 a " 3 Dir e c t Ln 1 7 a * 4 Dir e c t 49 3 , 3 6 7 _ 49 3 , 3 6 7 No t e 1: Co s t p e r l o o p = IN T E R S T A T E T O L L IN T R A S T A T E T O L L Jo i n t In t e r L A T A In t r a L A T A In t e r L A T A In t r a L A T A EA S Us e r Ot h e r MS G PL PL PL PL De f i n e d SO U R C E (b ) (e ) (d ) (e ) (~ (g ) (h ) (i) Re c o r d s 4,6 8 8 56 32 Ln 2 0 / 2 0 a 98 . 1 6 7 5 % 1. 1 7 2 8 % 0.6 5 9 7 % Ln 2 2 a * 2 1 13 , 0 6 6 , 2 3 9 15 6 , 0 9 8 87 , 8 0 5 2, 7 8 7 . 4 6 4 3 li N E D E S C R I P T I O N AS S I G N M E N T O F C & W F C A T 1 20 C & W F C a t 1 W o r k i n g L o o p s 21 D i s t r i b u t i o n o f L i n e 2 1 22 C a t 1 - E x L i n e x I Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 90 f 2 3 Al b i o n T e l e p h 9 n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 TO T A L CO M P A N Y (a ) SE P A R A T I O N S F A C T O R S 23 I n t e r e x c h a n g e T r k W B 24 C M M P c H X x l B 25 C & W F T W C o n n e c t M i n M i l e s P e t - I T 26 C & W F T W C o n n e c t M i n M i l e s P c t - R m t 27 H o s t / R e m o t e M O U M i l e s P c t C& W F C A T 3 - 4 S E P A R A T I O N 28 C a t 3 - l n t e r e x c h a n g e C & W F 29 w e P L - D i r e c t A s s i g n m e n t 30 W B . J o i n t M e s s a g e 31 J o i n t M S G x J 32 P L , T W & L o c a l x l B 33 J o i n t T W ~ I T 34 J o i n t T W - R m t 35 D i r e c t A s s i g n m e n t - N o n a c c e s s 36 T o t a l C a t e g o r y 3 Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Di r e c Ln 3 0 a * 2 3 Ln 4 8 b . 2 4 Ln 4 9 c . . i Ln 4 9 j ' 2 5 Ln 4 9 k . 2 6 Dir e c t Ln 2 8 . . 3 5 37 C a t 4 - H o s t l R e m o t e C & W F 38 J o i n t ( x l A T S ) 39 W A T S 40 D i r e c t A s s i g n m e n t 41 T o t a l C a t e g o r y 4 Ln 3 8 a * 2 7 Dir e c t Di r e c Ln 3 8 . A O 42 T O T A L C A B L E & W I R E F A C I L I I E S 43 D i s t r i b u t i o n o f L i n e 42 Ln 1 1 + 1 9 + 3 6 + 4 1 Ln 4 2 / 4 2 a LI N E D E S C R I P T I O N AS S I G N M E N T O F C & W F C A T 3 44 E q u i v I X e i r e M i l e s - M S G 45 - P L , T W & L o c a l 46 D i s t r i b u t i o n o f L i n e 4 4 47 D i s t r i b u t i o n o f L i n e 4 5 48 C a t 3 - A I I O t h e r x t M S G 49 . P L , T W X & L o c a l SO U R C E Re c o r d s Re c o r d s Ln 4 4 / 4 4 a Ln 4 5 / 4 4 a Ln 4 8 a * 4 6 Ln 4 8 a * 4 7 No t e 1: Co s t p e r c i r c u i t m i l e = Pr o p r i e t a r y I n f o r m a t i o n 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 21 , 7 8 5 , 9 2 7 10 0 . 0 0 0 0 % CA B L E A N D W I R E F A C I L I T I E S 69 , 7 2 8 4, 8 6 8 , 8 6 9 24 0 , 6 1 4 5, 1 7 9 , 2 1 0 1,0 9 2 , 1 0 5 1,0 9 2 , 1 0 5 65 8 , 7 7 9 17 2 , 6 7 3 4, 2 2 1 , 1 7 3 24 1 , 1 0 9 49 3 , 3 6 7 19 . 3 7 5 7 % 1.1 0 6 7 % 2.2 6 4 6 % EA S Us e r Ot e r JtM S G T W De f n e d In t e r t o l l Re m o t e hI (j m (k 8,0 1 2 , 2 6 7 36 . 7 7 7 3 % 2,0 2 4 , 2 3 9 9.2 9 1 5 % Jo i n t M S G Ex c l T W b IN T E R S T A T E T O L L In t e r I n t r a LA T A L A T A c) ( d IN T R A S T A T E T O L L In t e r I n t r a LA T A L A T A TO T A L CO M P A N Y a 10 0 . 0 0 0 0 % 43 8 , 6 8 5,1 0 9 , 4 8 3 Mo s s A d a m s , L L P 2/ 1 2 / 2 0 0 8 23 . 8 6 7 0 % 26 0 , 6 5 3 26 0 , 6 5 3 6, 7 9 3 , 7 7 2 31 . 1 8 4 2 % 10 o f 23 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 6 DE S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 L a n d & S u p p o r t A s s e t s D i s t r 2 2 2 1 0 C a E - S w i t c h D i s t r 3 2 2 2 0 C a E - O p e r a t o r S y s t e m s D i s t r 4 2 2 3 0 C a E - T r a n s m i s s i o n D i s t r 52 3 1 0 l O T D i s t r 62 4 1 0 C & W F D i s t r 72 0 0 1 T P I S 8 2 0 0 1 T P I S i n c l 2 6 8 0 TA N G I B L E A S S E T S - C A P I T A L L E A S E S S E P 9 2 6 8 0 T a n g i b l e A s s e t s - C a p i t a l L e a s e s 10 2 1 1 0 L a n d & S u p t A s s e t s L n 1 0 a * 1 11 2 2 1 0 C a E - S w i t c h i n g L n 1 1 a * 2 12 2 2 2 0 C a E - O p e r a t o r L n 1 2 a * 3 13 2 2 3 0 C O E - T r a n s m i s s i o n L n 1 3 a * 4 14 2 3 1 0 l O T L n 1 4 a * 5 15 2 4 1 0 C & W F L n 1 5 a * 6 16 N o t c l a s s i f i e d b y ac c o u n t L n 1 6 a * 7 17 D i r e c t A s s i g n m e n t D i r e c t 18 T O T A L C A P I T A L L E A S E S L n 1 0 . . 1 7 19 D i s t r i b u t i o n a t Li n e 1 8 L n 1 8 / 1 8 a I T A N G I B L E A S S E T S - L E A S E H L D I M P R O V E S E P I 20 2 6 8 0 T a n g i b l e A s s e t s - L e a s e h l d I m p r o v e 21 2 1 1 0 L a n d & S u p t A s s e t s 22 2 2 1 0 C O E - S w i t c h i n g 23 2 2 2 0 C O E - C p e r a t o r 24 2 2 3 0 C O E - T r a n s m i s s i o n 25 2 3 1 0 l O T 26 2 4 1 0 C & W F 27 N o t c l a s s i f i e d b y a c c u n t 28 D i r e c t A s s i g n m e n t 29 T O T A L L E A S E H O L D I M P R O V E M E N T S 30 D i s t r i b u t i o n o f L i n e 2 9 LIN E SO U R C E S- 4 , L n 1 4 S- 5 , L n 3 7 S- 5 , L n 2 4 8- 5 , L n 7 7 S- 6 , L n 1 2 S- 7 , L n 4 3 S- 2 , L n 8 S- 2 , L n 1 1 Ln 2 1 a * 1 Ln 2 2 a * 2 Ln 2 3 a * 3 Ln 2 4 a * 4 Ln 2 5 a * 5 Ln 2 6 a * 6 Ln 2 7 a * 7 Dir e c t Ln 2 1 . . 2 8 Ln 2 9 / 2 9 a 31 T O T A L T A N G I B L E A S S E T S L n 1 8 + 2 9 32 D i s t r i b u t i o n o f Li n e 3 1 L n 3 1 / 3 1 a I I N T A N G I B L E A S S E T S S E P A R A T I O N I 33 2 6 9 0 I n t a n g i b l e A s s e t s L n 3 3 a * 8 34 D i r e c t A s s i g n m e n t D i r e c 35 T O T A L I N T A N G I B L I ! A S S E T S L n 3 3 . . 3 4 36 D i s t r i b u t i o n o f L i n e 3 5 L n 3 5 / 3 5 a Pro p r i e t a r y I n f o r m a t i o n AM O R T I Z A B L E A S S E T S TO T A L CO M P A N Y PL MS G PL (a ) (e ) (d ) (e ) 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 10 0 . 0 0 0 0 % 28 . 6 1 4 4 % 16 . 4 9 8 3 % 10 0 . 0 0 0 0 % 36 . 7 7 7 3 % 9.2 9 1 5 % 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 2/ 1 2 / 2 0 0 8 S-8 PL (9 ) (k ) (I ) 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 15 . 0 0 0 0 % 17 . 5 6 8 0 % 1. 2 0 6 5 % 6.2 6 9 5 % 29 . 8 4 3 4 % 19 . 3 7 5 7 % 1. 1 0 6 7 % 2.2 6 4 6 % 31 . 1 8 4 2 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % Mo s s A d a m s , L L P 11 0 1 2 3 Alb i o n T e l e p h o n e C o m p a n y . R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S D i s t r 22 4 1 0 C & W F D i s t r 3 E q u a l A c c e s s M O U P c t OT H E R A C C O U N T S S E P A R A T I O N 4 2 0 0 2 P r o p H i d F u t T e l e c o m U s e 5 D i r e c t A s s i g n m e n t 6 T O T A L P R O P H L D F U T T E L E C O M U S E 7 D i s t r i b u t i o n o f L i n e 6 SO U R C E S.2 , L n 1 5 S. 7 , L n 4 3 Re c o r d s Ln 4 a * 1 Di r e c t Ln 4 . . 5 Ln 6 / 6 a 8 2 0 0 3 P i t U n d e r C o n s t r 9 D i r e c t A s s i g n m e n t 10 T O T A L P L T U N D E R C O N S T R 11 D i s t r i b u t i o n o f L i n e 1 0 Ln 8 a * 1 Di r e c t Ln B . . 9 Ln 1 0 / 1 0 a 12 2 0 0 5 T e l e c o m P l a n t Ad j u s t L n 1 2 a * 1 13 D i r e c t A s s i g n m e n t D i r e c t 14 T O T A L T E L E C O M P L A N T A D J U S T L n 1 2 , , 1 3 15 D i s t r i b u t i o n o f L i n e 1 4 L n 1 4 / 1 4 a I M I S C A C C O U N T S S E P A R A T I O N I 16 1 4 0 2 C l a s s B R T B S t o c k L n 1 6 a * 1 17 1 4 3 8 D e f e r r e d C h a r g e s Ln 1 7 a * 1 18 1 2 2 0 M a t e r i a l & S u p l x l C P E 19 D i r e c t A s s i g n m e n t 20 T O T A L M A T E R I A L S A N D S U P P L I E S Ln 1 8 a * 2 Di r e c t Ln 1 8 . . 1 9 21 C a s h W o r k i n C a i t a l C W C EQ U A L A C C E S S I N V E S T M E N T S E P A R A T I O N 22 E q u a l A c c e s s G r o s s I n v e s m e n t L n 2 2 a * 3 23 E q u a l A c c e s s G r o s s I n v e s t m e n t . D A D i r e c t 24 A c c u m D e p r e c i a t i o n L n 2 4 a * 3 25 D e f e r r e d O p e r I n c T a x e s L n 2 5 a * 3 26 U n a m o r t i z e d E x p e n s e s L n 2 6 a * 3 27 T O T A L N E T E Q U A L A C C E S S I N V E S T M E N T L n 2 2 - 2 4 - 2 5 + 2 6 28 D i s t r i b u t i o n o f L i n e 2 7 L n 2 7 1 2 7 a I I N V E S T A L L O W / D I S A L L O W S E P A R A T I O N I 29 I n v e s t m e n t A l l o w / D i s a l l o w a n c e s L n 2 9 a * 1 30 D i r e c t A s s i g n m e n t D i r e c t 31 T O T A L I N V E S T A L L O W / D I S A L L O W A N C E S L n 2 9 , . 3 0 Pro p r i e t a r y I n f o r m a t i o n TE L E C O M M U N I C A T I O N S P L A N T - O T H E R A C C O U N T S 2/ 1 2 1 2 0 0 8 S- 9 TO T A L CO M P A N Y .i 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 84 , 9 0 2 35 , 6 5 1 8, 0 9 6 84 , 9 0 2 35 , 6 5 1 8, 0 9 6 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 38 9 , 2 5 8 16 3 , 5 5 37 , 1 2 1 38 9 , 2 5 8 16 3 , 5 5 37 , 1 2 1 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 17 9 , 4 1 1 65 , 9 8 2 17 9 , 4 1 1 65 , 9 8 2 44 9 , 9 7 3 19 7 , 3 7 6 16 , 6 7 0 16 , 6 7 0 38 , 4 8 5 13 , 7 1 4 82 2 2,3 9 7 24 , 2 2 2 13 , 7 1 4 82 2 2,3 9 7 24 , 2 2 2 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 62 , 8 7 4 3,7 6 7 10 , 9 8 8 11 1 , 0 5 2 62 , 8 7 4 3,7 6 7 10 , 9 8 8 11 1 , 0 5 2 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 34 , 7 6 2 1,9 8 6 4,0 6 3 55 , 9 4 8 34 , 7 6 2 1,9 8 6 4,0 6 3 55 , 9 4 8 72 , 1 0 4 3,7 7 0 11 , 7 6 1 12 6 , 4 7 6 Mo s s A d a m s , L L P 12 0 f 2 3 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S D i s t r 2 2 0 0 3 P U C - P e t 3 C o r p O p e r E x p e n s e s D i s t r 4 2 6 8 0 C a p i t a l L e a s e s D i s t r 5 N e t T e l e c o m P l a n t D i s t r e x c l 4 0 4 0 , 4 3 1 0 62 1 1 0 S u p p o r t As s e t s D i s t r 72 2 1 0 C a E - S w i t c h i n g D i s t r 8 2 2 2 0 C a E - O p e r a t o r D i s t r 9 2 2 3 0 C a E - T r a n s m i s s i o n D i s t r 10 2 3 1 0 lO T D i s t r 11 2 4 1 0 C & W F D i s t r 12 C O E , l O T , C & W F 13 B i g T h r e e E x p e n s e s D i s t r _ _ _ _ _ _ OT H E R I N C O M E S E P A R A T I O N 14 7 3 0 0 N o n o p e r I n c & E x p e n s e s 15 A l w F d s U s e d O u r C o n s t r 16 C o n t r i b u t i o n s 17 A b a n d o n e d C o n s t r u c t i o n 18 O t h e r N o n o p e r a t i n g E x p e n s e SO U R C E 5-2 , L n 1 5 S- 9 , L n l l S- 1 4 , L n 1 7 S- 8 , L n 1 9 8-2 , L n 3 7 54 , L n 9 S- 5 , L n 3 7 S- 5 , L n 2 4 S- 5 , L n n S- , L n 1 2 S- 7 , L n 4 3 S- 2 , L n 8 S- 3 , L n 6 Ln 1 5 a " 2 Ln 1 6 a " 3 Ln 1 7 a " 1 Dir e c t 19 F i x e d C h a r g e s 20 I n t e r e s t o n C a p i t a l L e a s e s 21 F i x e d C h a r g e s E x c l C a p i t a l L e a s e s 22 A m o r t i z a t i o n o f D e b t D i s c o u n t 23 O t h e r I n t e r e s t 24 T O T A L F I X E D C H A R G E S Ln 2 0 a " 4 Ln 2 1 a " 5 Ln 2 2 a * 5 Ln 2 3 a " 5 Ln 2 0 . . 2 1 25 5 2 4 0 R e n t R e v e n u e s 26 S u p p o r t A s s e t s 27 C O E - S w i t c h i n g 28 C O E - O p e r a o r 29 C a E - T r a n s m i s s i o n 30 I n f o O r i g f T e r m E q u i p 31 C & W F 32 N o t C l a s s i f i e d b y A c c t 33 U N B U N D L E D N E T W O R K E L E M E N T S 34 C & W F . U n b u n d l e d L o o p S - 5 , L n 4 1 " L n 3 4 35 O p e r a t o r S y s t e m s S - 5 , L n 2 4 " L n 3 5 36 T a n d e m S w i t c h i n g S - 5 , L n 2 9 " L n 3 6 37 L o c a l S w i t c h i n g S - 5 , L n 3 4 " L n 3 7 38 T r a n s p o r t T e r m i n a t i o n S - 5 , L n 6 5 * L n 3 8 39 T r a n s p o r t F a c i l i t y 5 - 5 , L n 6 5 " L n 3 9 40 S S 7 8 - 5 , L n 7 5 " L n 4 0 41 a s s L n 4 1 a " 1 42 D i r e c t A s s i g n m e n t D i r e c t 43 T O T A L R E N T R E V E N U E S L n 2 6 . . 4 2 I I N C O M E T A X A D J U S T M E N T S S E P A R A T I O N S I 44 I T C A m o r t i z a t i o n - F e d e r a i L n 4 4 a " 1 45 I T C A m o r t i z a t i o n - S t a t e L n 4 5 a " 1 46 T O T A L I T C A M O R T I Z A T I O N L n 4 4 . . 4 5 Ln 2 6 a " 6 Ln 2 7 a " 7 Ln 2 8 a " 8 Ln 2 9 a " 9 Ln 3 0 a " 1 0 Ln 3 1 a " 1 1 Ln 3 2 a " 1 , D i r e c t 47 A m o r t i z a t i o n o f E x c e s s D e f T a x e s ln 4 7 a * 1 48 C a p i t a l i z e d P a y r o l l T a x e s 49 D i r e c t A s s i g n m e n t 50 T O T A L C A P I T A L I Z E D P A Y R O L L T A X E S ln 4 8 a " 1 Di r e c t ln 4 8 . . 4 9 51 D e p r e c i a t i o n A d j u s t m e n t s 52 D i r e c t A s s i g n m e n t 53 T O T A L D E P R E C I A T I O N A D J U S T M E N T S Ln 5 1 a * 1 Di r e c t Ln 5 1 . . 5 2 54 U n c o l l e c t i b l e s - J o i n t M e s s a g e 55 U n c o l l e c t i b l e s - E n d U s e r C C L 56 U n c o l l e c t i b l e s - I n t e r e x c h a n g e C a r r i e r 57 T O T A L U N C O L L E C T I B L E S Dir e c t Dir e c t Dir e c t ln 5 4 . . 5 6 58 M i s c I n c A d j u s t m e n t s 59 I n c A d j A l I o e o n 2 0 0 1 60 I n c A c l A l l o e o n 2 0 0 1 - D i r e c t A s s i g n m e n t 61 I n e A d j A l I o e o n B i g 3 E x p 62 I n c A d j A l l o c o n B i g 3 E x p - D i r e c A s s i g n m e n t 63 T O T A L M l S C I N C A D J U S T M E N T S ln 5 9 a * 1 Dir e e t Ln 6 1 a * 1 3 Dir e c t ln 5 9 . . 6 1 Pro p r i e t a r y I n f o r m a t i o n 21 1 2 1 2 0 0 8 CE R T A I N I N C O M E A C C O U N T S A N D A D J U S T M E N T S S-1 0 TO T A L In t e r L A T A In t r a L A T A CO M P A N Y MS G PL PL MS G PL MS G PL (a (b ) (c ) (e ) (n (9 ) (h ) (i ü) (k ) (I ) 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 10 0 . 0 0 0 0 % 44 . 6 6 1 8 % 8.2 0 1 2 % 15 . 8 6 2 1 % 0. 7 9 9 9 % 2.5 2 3 4 % 27 . 9 5 1 6 % 10 0 . 0 0 0 0 % 42 . 1 5 3 0 % 11 . 0 2 3 6 % (0 . 0 0 9 5 % ) 16 . 6 5 1 1 % 1. 2 0 7 7 % 3.4 5 9 0 % 25 . 5 1 5 2 % 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 15 . 0 0 0 0 % 10 0 . 0 0 0 0 % 28 . 6 1 4 4 % 16 . 4 9 8 3 % 17 . 5 6 8 0 % 1.2 0 6 5 % 6.2 6 9 5 % 29 . 8 4 3 4 % 10 0 . 0 0 0 0 % 36 . 7 7 7 3 % 9.2 9 1 5 % 19 . 3 7 5 7 % 1.1 0 6 7 % 2.2 6 4 6 % 31 . 1 8 4 2 % 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 10 0 . 0 0 0 0 % 42 . 7 9 4 0 % 8.4 7 8 0 % 16 . 3 9 7 5 % 0. 8 2 6 9 % 2.6 0 8 5 % 28 . 8 9 5 1 % 16 , 8 0 4 7, 5 0 5 1, 3 7 8 2,6 6 5 13 4 42 4 4,6 9 7 27 2 , 1 4 5 45 , 3 1 5 69 , 4 3 8 3, 2 8 7 9,4 1 3 11 4 , 7 1 7 30 , 0 0 0 (2 6 ) 27 2 , 1 4 5 30 , 0 0 0 69 . 4 3 8 (2 6 ) 45 , 3 1 5 3, 2 8 7 9,4 1 3 11 4 , 7 1 7 Mo s s A d a m s , L l P 13 0 f 2 3 2/ 1 2 / 2 0 0 8 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 PL A N T S P E C I F I C E X P E N S E S S-1 1 St u d y Y e a r : 2 0 0 6 ;~ . ' \ ¡ ~ f T T r TO T A L In t e r l T A CO M P A N Y MS G PL MS G PL MS G PL MS G PL LI N E DE S C R I P T I O N SO U R C E (a l (b l (e ) (d l (e ) (i j (9 ) (h i (il u) (k l (I) SE P A R A T I O N S F A C T O R S 1 2 1 1 0 L a n d & S u p t A s s t s D i s t r S- 4 , L n 1 4 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 2 T o t a l C O E D i s t r + E A D i s t r S- 5 , L n 7 9 i n e l E A 10 0 . 0 0 0 0 % 50 . 9 6 8 0 % 9.9 5 7 7 % 10 . 6 0 3 3 % 0. 7 2 8 2 % 3.7 8 4 0 % 23 . 9 5 8 9 % 32 3 1 0 l O T C a t 1 - 0 t h e r D i s t r S.. , L n 1 10 0 . 0 0 0 0 % 25 . 0 0 0 0 % 25 . 0 0 0 0 % 50 . 0 0 0 0 % 4 2 3 1 0 l O T C a t 2 - C P E D i s t r S- 6 , L n l 0 52 4 1 0 C & W F D i s t r $-7 , L n 4 3 10 0 . 0 0 0 0 % 36 . 7 7 7 3 % 9.2 9 1 5 % 19 . 3 7 5 7 % 1.1 0 6 7 % 2.2 6 4 6 % 31 . 1 8 4 2 % PL A N T S P E C I F I C E X P E N S E S S E P A R A T I O N 66 1 1 0 N e t w o r k S u p p o r t E x p e n s e s Ln 6 a * 1 47 , 6 5 6 20 , 0 1 2 4,5 4 5 7, 6 9 8 46 1 1,3 4 5 13 , 5 9 6 7 Di r e c t A s s i g n m e n t Dir e c t 8 T O T A L N E T W O R K S U P P O R T E X P E N S E S Ln B . . 7 47 , 6 5 6 20 , 0 1 2 4,5 4 5 7, 6 9 8 46 1 1,3 4 5 13 , 5 9 6 9 6 1 2 0 G e n e r a l S u p p o r t E x p e n s e s Ln 9 a * 1 10 3 , 6 9 1 43 , 5 4 2 9,8 8 8 16 , 7 4 8 1, 0 0 3 2,9 2 7 29 , 5 8 2 10 Di r e c t A s s i g n m e n t Dir e c t 11 T O T A L G E N E R A L S U P P O R T E X P E N S E S Ln S . . 1 D 10 3 , 6 9 1 43 , 5 4 2 9,8 8 8 16 , 7 4 8 1, 0 0 3 2,9 2 7 29 , 5 8 2 12 6 2 1 0 C O E S w i t c h i n g E x p e n s e s Ln 1 2 a " 2 48 4 , 7 0 0 24 7 , 0 4 2 48 , 2 6 5 51 , 3 9 4 3, 5 2 9 18 , 3 4 1 11 6 , 1 2 9 13 Di r e c t A s s i g n m e n t Dir e c t 14 T O T A L C O E S W I T C H I N G E X P E N S E S Ln 1 2 . . 1 3 48 4 , 7 0 0 24 7 , 0 4 2 48 , 2 6 5 51 , 3 9 4 3, 5 2 9 18 , 3 4 1 11 6 , 1 2 9 15 6 2 2 0 C O E O p e r a t o r S y s t e m s E x p e n s e s Ln 1 5 a " 2 16 Di r e c t A s s i g n m e n t Dir e c t 17 T O T A L C O E O P E R A T O R S Y S E X P E N S E S Ln 1 5 . . 1 6 18 6 2 3 0 C O E T r a n s m i s s i o n E x p e n s e s Ln 1 8 a " 2 45 1 , 2 2 5 22 9 , 9 8 0 44 , 9 3 2 47 , 8 4 5 3, 2 8 6 17 , 0 7 4 10 8 , 1 0 8 19 Di r e c t A s s i g n m e n t Dir e c t 20 T O T A L C O E T R A N S M I S S I O N E X P E N S E S Ln 1 6 . . 1 9 45 1 , 2 2 5 22 9 , 9 8 0 44 , 9 3 2 47 , 8 4 5 3, 2 8 6 17 , 0 7 4 10 8 , 1 0 8 21 T O T A L C O E E X P E N S E S Ln 1 4 + 1 7 + 2 0 93 5 , 9 2 5 47 7 , 0 2 2 93 , 1 9 6 99 , 2 3 9 6, 6 1 5 35 , 1 5 22 4 , 2 3 7 22 6 3 1 0 l O T E q u i p E x p e n s e s 23 Ca t 1 - 0 t h e r l O T E q E x p e n s e s Ln 2 3 a * 3 24 Ca t 2 - C u s t P r e m E q u i p E x p Ln 2 4 a * 4 25 Di r e c t A s s i g n m e n t Dir e c t 26 T O T A L l O T E X P E N S E S Ln 2 3 . . 2 5 27 6 4 1 0 C & W F E x p e n s e s Ln 2 7 a " 5 1,0 9 5 , 9 0 0 40 3 , 0 4 2 10 1 , 8 2 6 21 2 , 3 3 8 12 , 1 2 9 24 , 8 1 8 34 1 , 7 4 8 28 Dir e c A s s i g n m e n t Di r e c 29 T O T A L C & W F E X P E N S E S Ln 2 7 . . 2 8 1,0 9 5 , 9 0 0 40 3 , 0 4 2 10 1 , 8 2 6 21 2 , 3 3 8 12 , 1 2 9 24 , 8 1 8 34 1 , 7 4 8 30 P i t S p e c E x p x / 1 1 0 , 6 1 2 0 Ln 2 1 + 2 6 + 2 9 2,0 3 1 , 8 2 5 88 0 , 0 6 4 19 5 , 0 2 2 31 1 , 5 7 7 18 , 9 4 4 60 , 2 3 3 56 5 , 9 8 5 31 T O T A L P L A N T S P E C O P E R E X P Ln 8 + 1 1 + 3 0 2,1 8 3 , 1 7 2 94 3 , 6 1 7 20 9 , 4 5 5 33 6 , 0 2 3 20 , 4 0 8 64 , 5 0 6 80 9 , 1 6 3 32 D i s t r i b u t i o n o f L i n e 3 1 Ln 3 1 / 3 1 a 10 0 . 0 0 0 0 % 43 . 2 2 2 3 % 9. 5 9 4 1 % 15 . 3 9 1 5 % 0.9 3 4 8 % 2.9 5 4 7 % 27 . 9 0 2 7 % Pro p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 14 o f 23 2/ 1 2 / 2 0 0 8 Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 PL A N T N O N S P E C I F I C E X P E N S E S S- 1 2 Stu d y Y e a r : 2 0 0 6 TO T A L In t e r l T A In t r . CO M P A N Y MS G PL MS G PL PL MS G PL LI N E DE S C R I P T I O N SO U R C E (a ) (b ) (e ) (d ) (e ) (g ) (h i (i) ul (k ) (I ) SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S O i s t r S- 2 , L n 1 5 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2. 8 2 2 9 % 28 . 5 2 9 3 % 2 T o t l C a E , l O T , C & W F D i s t r S- 2 , L n 7 + 9 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2. 8 2 2 9 % 28 . 5 2 9 3 % 32 1 1 0 S u p p o r t As s e t s D i s t r 5- 4 , L n S 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2. 8 2 2 9 % 28 . 5 2 9 3 % 4 2 2 1 0 C O E ~ S w i t c h i n g D i s t r S- 1 5 , L n 4 9 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 15 . 0 0 0 0 % 5 2 2 2 0 C O E - O p e r a t o r D i s t r S- 5 , L n 2 4 6 2 2 3 0 C O E - T r a n s m i s s i o n D i s t r S- 5 , L n 7 7 10 0 . 0 0 0 0 % 28 . 6 1 4 4 % 16 . 4 9 8 3 % 17 . 5 6 8 0 % 1.2 0 6 5 % 6. 2 6 9 5 % 29 . 8 4 3 4 % 72 3 1 0 l O T D i s t r 8- 6 , L n 1 2 82 4 1 0 C & W F D i s t r S- 7 , L n 4 3 10 0 . 0 0 0 0 % 36 . 7 7 7 3 % 9. 2 9 1 5 % 19 . 3 7 5 7 % 1.1 0 6 7 % 2. 2 6 4 6 % 31 . 1 8 4 2 % 9 2 0 0 2 P r o p H i d F t T e l U s e D i s t r S- 9 , L n 7 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2. 8 2 2 9 % 28 . 5 2 9 3 % 10 2 6 8 0 C a p i t a l L e a s e s D i s t r S- 8 , L n 1 9 11 2 6 8 0 L e a s e h o l d I m p r o v e m e n t s D i s t r S- 8 , L n 3 0 12 2 6 9 0 I n t a n g i b l e A s s e t s D i s t r S- 8 , L n 3 6 13 2 0 0 5 T e l e c o m P i t Ad u s t m e n t S- 9 , L n 1 5 PL A N T N O N S P E C I F I C E X P S E P A R A T I O N 14 6 5 1 0 O t h P r o p P l a n t & E q E x p Ln 1 4 a . 1 15 Dir e c t A s s i g n m e n t Di r e c t 16 T O T A L O T H P R O P P L A N T & E O E X P Ln 1 4 . . 1 5 17 6 5 3 0 N e t r k O p e r a t i o n s E x p Ln 1 7 a . 2 1 20 4 , 9 9 ~ I 86 , 0 7 9 19 , 5 4 ~ 1 :1 :1 33 , 1 1 1 1, 9 e : 1 5, 7 8 7 58 , 4 2 18 Dir e c t A s s i g n m e n t Di r e c t 19 T O T A L N E T W O R K O P E R A T I O N S E X P Ln 1 7 . . 1 8 20 4 , 9 9 0 86 , 0 7 9 19 , 5 4 8 33 , 1 1 1 1,9 8 4 5, 7 8 7 58 , 4 8 2 20 6 5 4 0 A c c e s s E x p e n s e s 21 Ac c e s s E x p e n s e x l F e d e r a l S u p p o r t Di r e c t 22 Fe d e r a l S u p p o r t Di r e c t 1 36 ' 1 1 5 1 36 , 1 1 5 23 T O T A L A C C E S S E X P E N S E S Ln 2 1 . . 2 2 36 , 1 1 5 36 , 1 1 5 24 6 5 6 0 D e p r a n d A m o r t E x p e n s e s 25 De p r - S u p p o r t A s s e t s Ln 2 5 a . 3 87 , 3 4 9 36 , 6 7 9 8,3 3 0 1 -I -I 14 , 1 0 9 84 5 1 2, 4 6 6 24 , 9 2 0 26 De p r - S u p p o r t A s s e t s - D i r e c t A s s i g n m e n t Di r e c t 27 De p r - C O E - S w i t c h i n g Ln 2 7 a . 4 28 De p r - C O E - S w i t c h i n g - D i r e c t A s s i g n m e n t Di r e c t I 64 5 , 8 4 5 1 54 8 , 9 6 8 -I -I -I -I 96 , 8 7 7 29 De p r - C O E - O p e r a t o r Ln 2 9 a . 5 30 De p r - C O E - O p e r a t o r - D i r e c t A s s i g n m e n t Di r e c t 31 De p r - C O E - T r a n s m i s s i o n Ln 3 1 a . 6 32 De p r - C O E - T r a n s m i s s i o n - D i r e c t A s s i g n m e n t Di r e c t 1 65 5 , 4 3 9 1 21 7 , 0 8 4 99 , 5 0 2 1 -I -I 11 8 , 8 3 6 4,3 7 6 1 31 , 4 7 9 18 4 , 1 6 2 33 De p r - I n f o O r i g l T e n n E q u i p Ln 3 3 a . 7 34 De p r - I n f o O r i g l T e r m E q u i p - D i r e c t A s s i g n m e n t Dir e c t 35 De p r - C a b l e & W i r e F a c i l t i e s Ln 3 5 a . 8 36 De p r - C a b l e & W i r e F a c i l i t i e s - D i r e c t A s s i g n m e n t Dir e c t 1 1, 1 1 2 , 6 8 0 1 36 3 , 5 3 1 10 8 , 7 4 2 1 -I 44 9 -I 22 5 , 8 3 7 12 , 2 0 7 1 24 , 0 6 1 37 7 , 8 5 3 37 De p r - P r o p H i d F t T e l U s e Ln 3 7 a . 9 38 Am o r t - C a p i t a l L e a s e s Ln 3 8 a . 1 0 39 Am o r t - L e a s e h o l d I m p r o v e m e n t s Ln 3 9 a . 1 1 40 Am o r t - I n t a n g i b l e A s s e t s Ln 4 0 a . 1 2 41 Am o r t - O t h e r Ln 4 1 a . 1 3 42 Am o r t - D i r e c t A s s i g n m e n t Dir e c t 43 T O T A L D E P R & A M O R T E X P E N S E S Ln 2 5 . . 4 1 I 2'5 0 1 ' 3 1 3 1 1,1 6 6 , 2 6 2 21 6 ' 5 7 4 1 ;1 44 9 ;1 35 8 , 7 8 2 17 , 4 2 8 1 58 , 0 0 6 68 3 , 8 1 2 44 T O T A L P L A N T N O N S P E C O P E R E X P Ln 1 6 + 1 9 + 2 3 + 4 3 2, 7 4 2 , 4 1 8 1,2 8 8 , 4 5 6 23 6 , 1 2 2 44 9 39 1 , 8 9 2 19 , 4 1 2 63 , 7 9 2 74 2 , 2 9 4 45 D i s t r i b u t i o n o f L i n e 3 9 Ln 4 4 / 4 4 a 10 0 . 0 0 0 0 % 46 . 9 8 2 5 % 8.6 1 0 0 % 0.0 1 6 4 % 14 . 2 9 0 0 % 0.7 0 7 8 % 2.3 2 6 1 % 27 . 0 6 7 1 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 15 0 1 2 3 Alb i o n T e l e p h o n e C o m p a n y ~ R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 6 LIN E SO U R C E TO T A L CO M P A N Y (a ) DE S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 M a r k e t i n g e x p e n s e f a c t o r 2 W S W S ~ T e l O p e r S v e s 3 S u b s c r i b e r L i n e M O U 4 E U S e r v i c e O r d e r C o n t a c t s 5 E U B i l e d R e v e n u e i n e l C C L 6 E U B i l e d I n q u i r y C o n t a c t s 7 I X S v c O r d P r o c C o n t a c t s 8 I X B i l e d R e v e n u e 9 I X B i l I n q C o n t a c t s 10 P u b l i c I n t e r e s t P a y s t a t i o n R e v e n u e MA R K E T I N G E X P E N S E S S E P A R A T I O N 11 6 6 1 0 M a r k e t i n g E x p e n s e s l n 1 1 a * 1 12 D i r e c t A s s i g n m e n t D i r e c t 13 T O T A L M A R K E T I N G E X P E N S E S L n 1 1 . . 1 2 I S E R V I C E S E X P E N S E S S E P A R A T I O N I 14 6 6 2 0 S e r v i c e s E x p e n s e s 15 T e l e p h o n e O p e r a t o r S e r v i c e : 16 T e l O p e r a t o r S v c 17 D i r e c t A s s i g n m e n t 18 T o t a l T e l O p e r S v c E x p 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s ln 1 6 a * 2 Di r e c t ln 1 6 . . 1 7 CU S T O M E R O P E R A T I O N S E X P E N S E S 54 . 6 5 4 2 % 42 . 8 8 3 7 % 28 . 1 0 6 0 % 44 . 5 7 5 7 % 31 . 9 0 8 2 % i 31 . 9 0 7 7 % 50 . 0 0 0 0 % 50 . 0 0 0 0 % 50 . 0 0 0 0 % 2/1 2 / 2 0 0 8 In t e r L A T A MS G P L (f j ( 9 ) PL (c ) MS G (d ) (I ) 32 . 1 6 8 5 % 64 . 5 8 4 0 % 50 . 1 9 6 8 % 48 . 0 8 1 5 % 48 . 0 8 0 4 % 7.1 6 5 9 % 57 . 1 1 6 3 % 7.3 1 0 0 % 5.2 2 7 5 % 20 . 0 1 0 3 % 20 . 0 1 1 9 % 50 . 0 0 0 0 % 50 . 0 0 0 0 % 50 . 0 0 0 0 % 10 0 . 0 0 0 0 % 19 Pu b l i s h e d D i r e c t L i s t i n g s : 20 Cl a s s i f i e d Di r e c t 21 TW Di r e c t 22 Al p h a ln 2 2 a * 3 23 Fo r e i g n Di r e c t 24 To t a l P u b l D i r e c l i s t ln 2 0 . . 2 3 25 Al l Ot h e r : 26 Ca t l ~ l B O E E U S v e O r d P r o c 27 Pr e s u b s c r i p t i o n Di r e c t 28 Ot h e r ln 2 8 a * 4 I 10 0 , 7 8 2 29 Ca t l ~ l B O E E U P m t & C o l 30 -C I I Di r e c t 31 - O t h e r ln 2 9 a * 5 I 51 , 2 4 1 32 Ca t l - l B O E E U B i l t I n q 33 -C I I Die c t 34 -O t h e r ln 3 2 a * 6 30 , 5 0 5 9,7 3 3 35 Ca t 1 - L B O E i X S v c O r d P r o c ln 3 5 a " 7 44 6 22 3 36 Ca t l - l B O E I X P m t & C o l Ln 3 6 a * 8 2,7 5 4 1,3 7 7 ~ I ~ I ~ I 1,3 7 7 37 Ca t 1 - L B O E i X B i l t I n q ln 3 7 a * 9 1,2 1 9 61 0 61 0 38 Ca t l - l B O E C n C o l & A d m i n Ln 3 8 a * 1 0 39 To t a l C a t l ~ L B O E Ln 2 6 . . 3 8 18 6 , 9 4 7 73 , 2 1 7 23 , 8 3 6 -I 89 , 8 9 4 Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 16 0 f 2 3 21 1 2 1 2 0 0 8 Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 CU S T O M E R O P E R A T I O N S E X P E N S E S St u d y Y e a r : 2 0 0 6 l'T A L CO M P A N Y LI N E DE S C R I P T I O N SO U R C E (a ) SE P A R A T I O N S F A C T O R S 40 R e l a t i v e T o l l & L o c a l M s g s P e t Re c o r d s 10 0 . 0 0 0 0 % I 42 . 9 0 0 0 % 41 C A B S P e t Re c o r d s 10 0 . 0 0 0 0 % 50 . 0 0 0 0 % SE R V I C E S E X P S E P A R A T I O N ( C O N T ' D ) I 42 Ca t 2 - C S E M s g P r o c 43 Jo i n t M e s s a g e Ln 4 2 a ~ 4 0 I 46 , 8 7 3 I 20 , 1 0 9 44 Dir e c t A s s i g n m e n t Dir e c t 45 Ca t 2 - C S E O t h e r B & C 46 Dir e c t A s s i g n m e n t Dir e c t 48 , 3 0 2 14 , 4 0 6 47 En d U s e r C o m m o n L i n e Dir e c t 2,5 4 2 2, 5 4 2 48 Ca t 2 - C S E C A B S Ln 4 8 a " 4 1 5,5 4 0 2,7 7 0 49 To t a l C a t 2 - C S E Ln 4 2 . . 4 8 10 3 , 2 5 7 39 , 8 2 7 ;1 ;1 46 , 4 2 ;1 16 , 9 4 8 50 To t a t A l l O t h e r C a t 1 & 2 Ln 3 9 + 4 9 29 0 , 2 0 4 11 3 , 0 4 70 , 3 1 8 10 6 , 8 4 2 51 Dis t r i b u t i o n o f L i n e 5 0 Ln 5 0 f 5 0 a 10 0 . 0 0 0 0 % 38 . 9 5 3 2 % 24 . 2 3 0 7 % 36 . 8 1 6 1 % 52 Ca t 3 - A l I O t h e r C S E Ln 5 2 a " S 1 53 Ca t 3 - D i r e c t A s s i g n m e n t Dir e c t 3,8 9 0 3,8 9 0 54 To t a l A l l O t h e r C a t 3 Ln 5 2 . . 5 3 3,8 9 0 3,8 9 0 55 To t a l A l l O t h e r - C a t 1 , 2 , 3 ln 5 0 + 5 4 29 4 , 0 9 4 11 8 , 9 3 4 70 , 3 1 8 10 6 , 8 4 2 56 T O T A L S E R V I C E S E X P E N S E S Ln 1 8 + 2 4 + 5 5 29 4 , 0 9 4 11 8 , 9 3 4 70 , 3 1 8 10 6 , 8 4 2 57 T O T A L C U S T O M E R O P E R E X P E N S E S Ln 1 3 + 5 6 29 4 , 0 9 4 11 6 , 9 3 4 70 , 3 1 8 10 6 , 8 4 2 58 Dis t r i b u t i o n o f L i n e 5 7 Ln 5 7 / 5 7 a 10 0 . 0 0 0 0 % 39 . 7 6 0 7 % 23 . 9 1 0 2 % 36 . 3 2 9 1 % Pro p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 17 o f 2 3 2/1 2 1 2 0 0 8 Al b i o n T e l e p h o n e C o m p a n y ~ R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 CO R P O P E R A T I O N S . T A X E S . & E Q U A L AC C E S S E X P E N S E S S-1 4 Stu d y Y e a r : 2 0 0 6 TO T A L In t e r l T A CO M P A N Y PL PL MS G PL MS G PL LI N E DE S C R I P T I O N SO U R C E (a ) (e ) (e ) (n (9 ) (h ) (i) OJ (k ) (I ) SE P A R A T I O N S F A C T O R S 1 B i g T h r e e E x p e n s e s D i s t r S.3 . L n 6 10 0 . 0 0 0 0 % 42 . 7 9 4 0 % 8.4 7 8 0 % 16 . 3 9 7 5 % 0. 8 2 6 9 % 2.6 0 8 5 % 28 . 8 9 5 1 % 2 2 0 0 1 T P I S D i s t r $. 2 , L n 1 5 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 3 E q u a l A c c e s s I n v e s t D i s t r S.9 . L n 2 8 4 N e t T e l e c o m P l a n t D i s t r e x c 1 1 2 2 0 , E A S.2 . L n 3 7 10 0 . 0 0 0 0 % 42 . 2 1 4 2 % 11 . 0 4 3 3 % (0 . 0 0 9 6 % ) 16 . 6 2 0 1 % 1. 2 0 8 9 % 3.4 7 2 6 % 25 . 4 5 0 6 % 5 I n c o m e T a x D i s t r i b u t i o n S.3 . L n 2 7 10 0 . 0 0 0 0 % 44 . 7 7 3 2 % 8.5 8 7 5 % 0.0 0 6 1 % 15 . 4 7 1 0 % 0. 7 9 1 4 % 2.5 1 6 7 % 27 . 8 5 4 2 % CO R P O R A T E O P E R E X P S E P A R A T I O N S I 66 7 1 0 E x e c & P l a n n i n g E x p e n s e s 7 EA S Di r e c t 8 All Oth e r Ln 8 a ~ 1 i 54 3 , 4 1 7 23 2 . 5 5 0 .. ' . . 4 1 i ; ó i : I ~~ 8 9 . ~ ~ - 4 . 4 9 : 1 14 . 1 7 5 9 Di r e c t A s s i g n m e n t Di r e c t 10 T O T A L E X E C & P L A N N I N G E X P E N S E S Ln 7 . . 9 54 3 , 4 1 7 23 2 . 5 5 0 46 . 0 7 1 89 . 1 0 7 4 , 4 9 3 14 . 1 7 5 11 6 7 2 0 G e n ' l a n d A d m i n E x p e n s e s 12 EA S Dir e c t 13 AU O t h e r Ln 1 3 a * 1 74 8 . 4 4 9 32 0 . 2 9 1 63 , 5 3 12 2 . 7 2 7 6.1 8 9 19 . 5 2 4 14 Di r e c t A s s i g n m e n t Dir e c t 43 . 6 0 5 43 . 6 0 5 15 T O T A L G E N ' L & A D M I N E X P E N S E S Ln 1 2 . . 1 4 79 2 . 0 5 4 36 3 . 8 9 6 63 , 5 3 12 2 . 7 2 7 6.1 8 9 19 . 5 2 4 21 6 . 2 6 5 16 T O T A L C O R P O R A T E O P E R E X P E N S E S Ln l 0 + 1 5 1. 3 3 5 , 4 7 1 59 6 . 4 4 6 10 9 . 5 2 4 21 1 . 8 3 4 10 . 6 8 2 33 . 6 9 9 37 3 . 2 8 6 17 D i s t r i b u t i o n o f L i n e 1 6 Ln 1 6 1 1 6 a 10 0 . 0 0 0 0 % 44 . 6 6 1 8 % 8.2 0 1 2 % 15 . 8 6 2 1 % 0. 7 9 9 9 % 2.5 2 3 4 % 27 . 9 5 1 6 % I OP E R A T I N G T A X E S S E P A R A T I O N S I 16 7 2 0 0 O p e r a t i n g T a x e s ( A c t u a l ) 19 Fe d e r a l In c o m e T a x e s Ln 1 9 a * 5 1 61 1 . 6 3 ~ 1 27 3 . 8 5 1 52 . 5 2 ~ 1 :1 37 :1 94 . 6 2 6 4. 8 4 : 1 15 . 3 9 3 17 0 . 3 6 7 20 St a t e & L o c a l I n c o m e T a x e s Ln 2 0 a * 5 21 OP F E D . S T A T E . L O C A L T A X E S . C W C 61 1 . 6 3 9 27 3 . 8 5 1 52 . 5 2 4 37 94 . 6 2 6 4.8 4 1 15 . 3 9 3 17 0 . 3 6 7 22 F I T A l l o w a n c e s l i s a l l o w a n c e s Ln 2 2 a * 2 23 Op e r a t i n g T a x e s - P r o p e r t y Ln 2 3 a * 2 I 14 1 . 6 2 : I 59 . 4 7 0 13 . 5 0 6 1 -I .1 22 . 8 7 5 1. 3 7 0 1 3.9 9 8 40 , 4 0 4 24 Op e r a t i n g T a x e s - O t h e r Ln 2 4 a * 2 25 Op e r a t i n g T a x e s - D i r e c t A s s i g n m e n t Dir e c t 1.0 8 1 1. 0 8 1 26 T O T A L O P E R T A X E S x l I T . S I T Ln 2 3 . . 2 5 14 2 . 7 0 4 60 . 5 5 1 13 . 5 0 6 1 -I .1 22 . 8 7 5 1.3 7 0 I 3.9 9 8 40 , 4 0 4 I OP E R A T I N G R E V E N U E S E P A R A T I O N S I 27 5 0 0 0 B a s i c L o c a l R e v e n u e Di r e c 26 5 0 8 0 I n t e r s t a t e A c c e s s l E n d U s e r R e v e n u e Dir e c t 29 5 0 8 4 S t a t e A c c s s / E n d U s e r R e v e n u e Dir e c t 30 5 1 0 0 L o n g D i s t a n c e M e s s a g e R e v e n u e Dir e c t 31 5 2 0 0 M i s c e l l a n e o u s O p e r a i n g R e v e n u e Dir e c t 32 7 1 0 0 O t h e r O p e r a t i n g I n c o m e Dir e c t 33 T O T A L O P E R A T I N G R E V E N U E Ln 2 7 . . 3 2 I EQ U A L A C C E S S E X P E N S E S S E P A R A T I O N I 34 E q u a l A c c e s s E x p e n s e s Ln 3 4 a * 3 35 T O T A L E Q U A L A C C E S S E X P E N S E S Ln 3 4 . . 3 4 -- 36 E x p e n s e 37 In t e r e s t o n C u s t o m e r D e p o s i t s Ln 3 7 a * 4 I 20 7 \ 87 23 1 .1 (0 ) .1 34 31 7 53 38 Oth e r I n t e r e s t D e d u c t i o n Ln 3 7 a * 4 39 Dir e c t A s s i g n m e n t Dir e c t 40 T O T A L E X P E N S E A L L O W / D I S A L L O W A N C E S Ln 3 7 . . 3 8 1 20 7 1 87 23 1 -I 1m -I 34 31 7 53 No t e 1 : F I T a n d S I T C a l c u l a t e d o n t h e 5 - 1 Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 18 0 f 2 3 21 1 2 1 2 0 0 8 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 RE S E R V E S & D E F E R R A L S St u d y Y e a r : 2 0 0 6 Tõ A L CO M P A N Y MS G PL MS G PL MS G PL MS G PL LIN E DE S C R I P T I O N SO U R C E (a ) (b ) (e ) (d ) (e ) (n (9 ) (h ) (i) ul (k ) (I ) SE P A R A T I O N S F A C T O R S 1 2 1 1 0 S u p p o r t A s s e t s D i s t r 54 , L n g 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2. 8 2 2 9 % 28 . 5 2 9 3 % 22 2 1 0 C O E - S w i c h i n g , i n c l . E A D i s t r S- 5 , L n 3 7 + S - 9 , L n 2 6 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 15 . 0 0 0 0 % 3 2 2 2 0 C O E - O p e r a t o r D i s t r S- 5 , L n 2 4 4 2 2 3 0 C O E - T r a n s m i s s i o n D i s t r S- 5 , l n 7 7 10 0 . 0 0 0 0 % 28 . 6 1 4 4 % 16 . 4 9 8 3 % 17 . 5 6 8 0 % 1.2 0 6 5 % 6. 2 6 9 5 % 29 , 8 4 3 4 % 52 3 1 0 l O T D i s t r S- 6 , L n 1 2 62 4 1 0 C & W F D i s t r S- 7 , L n 4 3 10 0 . 0 0 0 0 % 36 . 7 7 7 3 % 9. 2 9 1 5 % 19 . 3 7 5 7 % 1.1 0 6 7 % 2. 2 6 4 6 % 31 . 1 8 4 2 % 7 2 0 0 1 T P I S x l L a n d S- 2 . L n 1 6 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2. 8 2 2 9 % 28 . 5 2 9 3 % a G e n e r a l S u p p o r t , C a E , l O T , C & W F S- 2 , L n 1 + 8 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2. 8 2 2 9 % 28 . 5 2 9 3 % 9 2 0 0 2 P r o p H i d F t r T e l U s e D i s t r S- 9 , L n 7 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2. 8 2 2 9 % 28 . 5 2 9 3 % 10 2 6 8 0 C a p t i a l L e a s e s D i s t r S- 8 , L n 1 9 11 2 6 8 0 L e a s e h o l d I m p r o v e m e n t s S- 8 , L n 3 0 12 2 6 9 0 I n t a n g i b l e A s s e t s D i s t r S- 8 , L n 3 6 13 2 0 0 5 T e l e c o m P i t Ad u s t m e n t S- 9 , L n 1 5 RE S E R V E S & D E F E R R A L S S E P A R A T I O N 14 1 5 0 0 O t h e r J u r i s A s s e t s - N e t Di r e c 15 3 1 0 0 A c c u m D e p r - T e l P i t i n S v c I 16 Su p p o r t A s s e t s Ln 1 6 a * 1 2'2 4 9 ' 8 4 2 1 94 4 , 7 4 4 21 4 ' 5 5 ~ I ~ I ~ I 36 3 , 4 0 1 21 ' 7 7 ~ I 63 , 5 1 1 64 1 , 8 6 4 17 Su p p o r t A s s e t s - D i r e c t A s s i g n m e n t Di r e c t 18 Ca E - S w i t c h i n g Ln 1 8 a * 2 1,9 0 5 , 1 1 6 1,6 1 9 , 3 4 9 28 5 , 7 6 7 19 Ca E - S w i t c h i n g - D i r e c t A s s i g n m e n t Di r e c t 2,2 3 5 , 3 3 1 1,9 0 0 , 0 3 1 33 5 , 3 0 0 20 CO E - O p e r a t o r Ln 2 0 a * 3 21 Ca E - O p e r a t o r - D i r e c t A s s i g n m e n t Di r e c t 22 CO E - T r a n s m i s s i o n Ln 2 2 a * 4 I 2,1 4 8 , 2 O S I 61 4 , 6 9 5 35 4 , 4 1 7 1 :1 :1 37 7 , 3 9 6 25 , 9 1 7 1 13 4 , 6 8 1 84 1 , 0 9 8 23 CO E - T r a n s m i s s i o n - D i r e c t A s s i g n m e n t Di r e c t 2,3 3 1 , 9 3 1 68 9 , 3 2 8 38 1 , 3 4 0 41 8 , 0 5 0 16 , 7 7 1 12 0 , 6 4 3 70 5 , 8 0 0 24 In f o O r i g l T e r m E q u i p Ln 2 4 a * 5 25 In f o O r i g l T e r m E q u i p - D i r e c t A s s i g n m e n t Di r e c t 28 C& W F Ln 2 6 a * 6 1 5'1 4 3 ' 6 3 5 1 1,8 9 1 , 6 8 8 47 7 , 9 2 1 1 :1 :1 99 6 , 6 1 4 56 ' 9 2 6 1 11 6 , 4 8 3 1,6 0 4 , 0 0 2 27 C& W F - D i r e c A s s i g n m e n t Di r e c t 5,6 1 2 , 8 3 5 1,3 8 6 , 5 8 9 39 6 , 8 7 3 1,5 1 9 1,2 6 4 , 1 2 0 49 , 8 9 8 72 , 8 8 7 2,4 4 0 , 9 5 1 28 T O T A L A C C U M U L A T E D D E P R E C I A T I O N Ln 1 6 , , 2 7 21 , 6 2 6 , 8 9 4 9,0 4 6 , 4 2 3 1,8 2 5 , 1 0 2 1,5 1 9 3,4 1 9 , 5 8 1 17 1 , 2 8 2 50 8 , 2 0 4 6,6 5 4 , 7 8 2 29 3 2 0 0 A c c u r n D e p r P r o p e r t y H e l d 30 Fo r F u t u r e T e l e c m U s e Ln 3 0 a * 9 31 3 4 0 0 A c c u m A m o r t - C a p i t a l L e a s e s Ln 3 1 a * 1 0 32 3 4 0 0 A c c u m A m o r t - L e a s e h o l d I m p r o v e m e n t s Ln 3 2 a * 1 1 33 3 5 0 0 A c c u m A m o r t - I n t a n g i b l e Ln 3 3 a * 1 2 34 3 6 0 0 A c c u m A m o r - O t h e r Ln 3 4 a * 1 3 35 4 0 4 0 C u s t o m e r D e p o s i t s Ln 3 5 a * 7 I 5,0 0 : I 2,1 0 2 47 ~ I :1 :1 80 8 4~ 1 14 1 1, 4 2 8 36 Di r e c t A s s i g n m e n t Dir e c t 37 T O T A L C U S T O M E R D E P O S I T S Ln 3 5 . . 3 6 5, 0 0 5 2,1 0 2 47 7 80 8 48 14 1 1, 4 2 8 38 4 1 0 0 N e t Cu r De f O p In c Ta x e s 39 Su p p o r t A s s e t s Ln 3 9 a * 1 40 CO E - S w i t c h i n g Ln 4 0 a * 2 41 CO E - Q p e r a t o r Ln 4 1 a * 3 42 CO E - T r a n s m i s s i o n Ln 4 2 a * 4 43 In f o O r i g l T e r m E q u i p Ln 4 3 a * 5 44 C& W F Ln 4 4 a * S 45 No t C l a s s i f e d b y A c c t Ln 4 5 a * 8 46 T O T A L N E T C U R D E F O P I N C T A X E S Lo 3 9 . A S Pro p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 19 0 f 2 3 Alb i o n T e l e p h o n e C o m p a n y . R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 47 B i g T h r e e E x p e n s e s D i s t r 48 2 1 1 0 S u p p o r t A s s e t s D i s t r 49 2 2 1 0 C O E - S w i t c h i n g D i s t r 50 2 2 2 0 C O E - O p e r a t o r D i s t r 51 2 2 3 0 C O E - T r a n s m i s s i o n D i s t r 52 2 3 1 0 l O T D i s t r 53 2 4 1 0 C & W F D i s t r 54 2 0 0 1 T P I S x l a n d 55 2 0 0 1 T P I S D i s t r 56 2 0 0 1 T P I S D i s t r RE S E R V E S & D E F E R R A L S S E P A R A T I O N 57 4 3 1 0 O t h e r L o n g - T e r m L i a b i l t i e s 58 4 3 4 0 N e t N o n c u r r e n t D e f T a x e s 59 S u p p o r t A s s e t s 60 C O E - S w i t c h i n g 61 C O E ~ O p e r a t o r 62 C O E - T r a n s m i s s i o n 63 I n f o O r i g f T e r m E q u i p 64 C & W F 65 N o t C l a s s i f i e d b y A c e t 66 T O T A L N E T N O N C U R R E N T D E F T A X E S 67 4 3 6 0 O t h e r D e f e r r e d C r e d i t s - N e t SO U R C E S- 3 , L n 6 S- 4 , L n 9 S- 1 5 , L n 2 S- 5 , L n 2 4 S- 5 , L n 7 7 S- 6 , L n 1 2 S- 7 , L n 4 3 S- 2 , L n 1 8 S- 2 , L n 1 5 S- 2 , L n 1 + 8 Ln 5 7 a * 4 7 Ln 5 9 a * 4 8 Ln 6 0 a * 4 9 Ln 6 1 a * 5 0 Ln 6 2 a * 5 1 Ln 6 3 a * 5 2 Ln S 4 a * 5 3 Ln 6 5 a * 5 4 Ln 5 9 . . 6 5 Ln 6 7 a * 5 5 68 4 3 7 0 O t h e r J u r i s L i a b i l t i e s 69 & D e f e r r e d C r e d i t s - N e t D i r e c t I A C C U M D E P R & A M O R T A L L O W / D I S A L L O W I 70 A c c u m D e p r & A m o r t A l l o w / D i s a l l o w L n 7 0 a * 5 4 71 D i r e c t A s s i g n m e n t D i r e c t 72 T O T A L A C C D E P R I A M O R T A L W / D I S A L L O W L n 7 0 . . 7 1 Pro p r i e t a r y I n f o r m a t i o n 21 1 2 / 2 0 0 8 RE S E R V E S & D E F E R R A L S TO T A L CO M P A N Y MS G PL MS G PL MS G PL MS G PL (a ) (b ) (e ) (d ) (e l (0 (9 ) (h ) (i) ul (k l (I) 10 0 . 0 0 0 0 % 42 . 7 9 4 0 % 8.4 7 8 0 % 16 . 3 9 7 5 % 0.8 2 6 9 % 2.6 0 8 5 % 28 . 8 9 5 1 % 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 15 . 0 0 0 0 % 10 0 . 0 0 0 0 % 28 . 6 1 4 4 % 16 . 4 9 8 3 % 17 . 5 6 8 0 % 1. 2 0 6 5 % 6.2 6 9 5 % 29 . 8 4 3 4 % 10 0 . 0 0 0 0 % 36 . 7 7 7 3 % 9. 2 9 1 5 % 19 . 3 7 5 7 % 1. 1 0 6 7 % 2.2 6 4 6 % 31 . 1 8 4 2 % 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % 63 , 5 3 4 27 , 1 8 9 5,3 8 6 10 , 4 1 8 52 5 1, 6 5 7 18 , 3 5 8 29 6 , 5 6 3 29 6 , 5 6 3 47 , 9 0 2 47 , 9 0 2 84 , 6 0 7 84 , 6 0 7 2, 8 7 0 2, 8 7 0 8, 3 7 2 8, 3 7 2 12 4 , 5 3 1 12 4 , 5 3 1 28 , 2 8 1 28 , 2 8 1 Mo s s A d a m s , L L P 20 of 23 21 1 2 1 2 0 0 8 Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a ; 4 7 2 2 1 3 CA S H W O R K I N G C A P I T A L S- 1 6 Stu d y Y e a r : 2 0 0 6 -r CO ~ : t N Y MS G PL MS G PL MS G PL MS G PL LI N E DE S C R I P T I O N SO U R C E (b ) (e ) (d ) (e ) (n (9 ) (h ) (i ) G) (k ) (I ) CA S H W O R K I N G C A P I T A L 1 P l a n t S p e c i f i c E x p e n s e s S-1 1 , L n 3 1 2,1 8 3 , 1 7 2 94 3 , 6 1 7 20 9 , 4 5 5 33 6 , 0 2 3 20 , 4 8 64 , 5 0 6 60 9 , 1 6 3 2 P l a n t N o n s p e c i f c e x p a x e l d e p r e c i a t i o n & a m o r t i z a t i o n 8-1 2 , L n 1 6 a * 2 3 24 1 , 1 0 5 12 2 , 1 9 4 19 , 5 4 8 33 , 1 1 1 1,9 8 4 5,7 8 7 58 , 4 8 2 3 C u s t o m e r O p e r a t i o n s E x p e n s e - M a r k e t i n g 8-1 3 , L n 1 3 4 C u s t o m e r O p e r a t i o n s E x p e n s e - S e r v i c e s 8-1 3 , L o S 6 29 4 , 0 9 4 11 6 , 9 3 4 70 , 3 1 8 10 6 , 8 4 2 5 C o r p o r a t e O p e r a t i o n s E x p e n s e 8-1 4 , L o 1 6 1,3 3 5 , 4 7 1 59 6 , 4 4 6 10 9 , 5 2 4 21 1 , 8 3 4 10 , 6 8 2 33 , 6 9 9 37 3 , 2 8 6 6 E q u a l A c c e s s E x p e n s e 8-1 4 , L n 3 4 7 O t h e r N o n o p e r a i n g E x p e n s e . C o n t r i b u t i o n s 8-1 0 , L o 1 6 16 , 8 0 4 7,5 0 5 1,3 7 8 2,6 6 5 13 4 42 4 4,6 9 7 8 I n t e r e s t o n C a p i t a l L e a s e s 8-1 0 , l n 2 0 9 F i x e d C h a r g e s a x e l C a p i t a l L e a s e s 5-1 0 , L n 2 1 27 2 , 1 4 5 11 4 , 7 1 7 30 , 0 0 0 (2 6 ) 45 , 3 1 5 3,2 8 7 9,4 1 3 69 , 4 3 8 10 I n t e r e s t o n C u s t o m e r D e p o s i t s 8-1 0 , L n 1 7 20 7 87 23 (0 ) 34 3 7 53 11 O t h e r O p e r a t i n g T a x - P r o p e r t 8-1 0 , L n 2 3 14 1 , 6 2 3 59 , 4 7 0 13 , 5 0 6 22 , 8 7 5 1,3 7 0 3,9 9 8 40 , 4 0 4 12 O t h e r O p e r a i n g T a x - O t h e r 8-1 0 , L n 2 4 13 O t h e r O p e r a i n g T a x - D i r e c t A s s i g n m e n t 5-1 0 , L n 2 5 1,0 8 1 1,0 8 1 14 F e d e r a l I n c o m e T a x ( A c t u a l ) 5-1 0 , L n 1 9 61 1 , 6 3 9 27 3 , 8 5 1 52 , 5 2 4 37 94 , 6 2 6 4,8 4 1 15 , 3 9 3 17 0 , 3 6 7 15 S t a t e I n c o m e T a x ( A c t u a l ) 5-1 0 , L n 2 0 16 To t a l C a s h W o r k i n g C a p i t a l E x p e n s e s Ln 1 . . 1 5 5,0 9 7 , 3 4 1 2,2 3 5 , 9 0 1 43 5 , 9 5 9 11 81 6 , 8 0 3 42 , 7 0 8 13 3 , 2 2 7 1,4 3 2 , 7 3 2 17 C a s h W o r k i n g C a p i t a l F a c t o r Re c o r d s 8.8 2 4 7 % 8.8 2 4 7 % 8. 8 2 4 7 % 8.8 2 4 7 % 8.8 2 4 7 % 8.8 2 4 7 % 8. 8 2 4 7 % 8.8 2 4 7 % 8.8 2 4 7 % 8. 8 2 4 7 % 8.8 2 4 7 % 18 C a s h W o r k i n g C a p i t a l Ln 1 5 * L n 1 7 44 9 , 8 2 3 19 7 , 3 1 1 38 , 4 7 2 1 72 , 0 8 0 3,7 6 9 11 , 7 5 7 12 6 , 4 3 4 19 M i n i m u m B a n k B a l a n c e Re c o r d s 20 W o r k i n g C a s h A d v a n c e s Re c o r d s 15 0 66 13 0 24 1 4 42 21 To t a l C a s h W o r k i n g C a p i t a l 44 9 , 9 7 3 19 7 , 3 7 6 38 , 4 8 5 1 72 , 1 0 4 3,7 7 0 11 , 7 6 1 12 6 , 4 7 6 22 D i s t r i b u t i o n o f L i n e 2 0 Ln 2 1 / 2 1 a 10 0 . 0 0 0 0 % 43 . 8 6 1 % 8.5 5 2 7 % 0.0 0 0 2 % 16 . 0 2 4 1 % 0.8 3 7 9 % 2.6 1 3 7 % 28 . 1 0 7 4 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 21 o f 2 3 Alb i o n T e l e p h o n e C o m p a n y . R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 6 LN DE S C R I P T I O N SO U R C E 1 A V E R A G E N E T I N V E S T M E N T 2 A S S U M E D R A T E O F R E T U R N F O R E S T I M A T I N G T A X R A T E 3 R E T U R N O N I N V E S T M E N T 4 F I T I N C O M E A D J U S T M E N T ( F R O M C O S T S T U D Y ) 5 I N V E S T M E N T T A X C R E D I T A M O R T I Z A T I O N 6 A F T E R T A X I N C O M E B E F O R E T A X C R E D I T S 7 F I T B E F O R E T A X C R E D I T S ( M U S T E Q U A L L N 1 7 ) 8 T A X A B L E I N C O M E 9 F I T O N $ 0 t o $ 5 0 , 0 0 0 ( g 1 5 % 10 F I T O N $ 5 0 , 0 0 0 t o $ 7 5 , 0 0 0 1 § 2 5 % 11 F I T O N $ 7 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 ~ 3 4 % 12 F I T O N $ 1 0 0 , 0 0 0 t o $ 3 3 5 , 0 0 0 ( Q 3 9 % 13 F I T O N $ 3 3 5 , 0 0 0 t o $ 1 0 , 0 0 0 , 0 0 0 1 § 3 4 % 14 F I T O N $ 1 0 , 0 0 0 , 0 0 0 t o $ 1 5 , 0 0 0 , 0 0 0 1 § 3 5 % 15 F I T O N $ 1 5 , 0 0 0 , 0 0 0 t o $ 1 8 , 3 3 3 , 3 3 3 1 § 3 8 % 16 F I T O N O V E R $ 1 8 , 3 3 3 , 3 3 3 1 § 3 5 % 17 T O T A L T A X B L E I N C O M E / F I T B E F O R E T A X C R E D I T S 18 E F F E C T I V E F I T TA X R A T E S- l , L n 1 S- 1 , L n 4 Ln 1 a ~ 2 15 % 25 % 34 % 39 % 34 % 35 % 38 % 35 % LN s 9 . . 1 6 Pr o p r i e t a r y I n f o r m a t i o n TA X F O R M Ta x a b l e TO T A L 16 , 3 0 7 , 1 4 2 9. 8 6 8 3 % 1,6 0 9 , 2 4 2 27 2 , 1 4 5 1, 3 3 7 , 0 9 7 63 2 , 9 9 9 1,9 7 0 , 0 8 5 50 , 0 0 0 25 , 0 0 0 25 , 0 0 0 23 5 , 0 0 0 1,6 3 5 , 0 8 5 1, 9 7 0 , 0 8 5 IN C O M E TA X TO T A L I S u r T a x 7,5 0 0 6,2 5 0 8,5 0 0 91 , 6 5 0 55 5 , 9 2 9 66 9 , 8 2 9 34 . 0 0 0 0 % 2/ 1 2 / 2 0 0 8 S-1 7 5,0 0 0 11 , 7 5 0 16 , 7 5 0 10 0 , 0 0 0 55 0 , 0 0 0 Mo s s A d a m s , L L P 22 o f 2 3 .. 21 1 2 1 2 0 0 8 Al b i o n T e l e p h o n e C o m p a n y ~ R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 DI S T R I B U T I O N R A T I O S F O R R A T E B A S E A N D E X P E N S E S S- 1 8 Stu d y Y e a r : 2 0 0 6 'A In t r a L A T A NC I I MS G PL I MS G PL I MS G PL MS G PL AL L O C A T I O N R A T I O S I Ca t e g o r y To t a l (b ) (e ) (d ) (e ) (~ (9 ) (h ) (i) I OJ (k ) (I) Ca p i t a l l n v e s t r n e n t S u m m a I ) Ge n e r a l S u p p o r t F a c i l i t i e s 21 1 0 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % CO E S w i t c h i n g E q u i p m e n t 22 1 0 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 15 . 0 0 0 0 % Op e r a t o r S y s t e m s E q u i p m e n t 22 2 0 CO E T r a n s m i s s i o n E q u i p m e n t 22 3 0 10 0 . 0 0 0 0 % 28 . 6 1 4 4 % 16 . 4 9 8 3 % 17 . 5 6 8 0 % 1.2 0 6 5 % 6.2 6 9 5 % 29 . 8 4 3 4 % In f o r m a t i o n O r i g f f e r m E q u i p m e n t 23 1 0 Ca b l e & W i r e F a c i l i t i e s 24 1 0 10 0 . 0 0 0 0 % 36 . n 7 3 % 9. 2 9 1 5 % 19 . 3 7 5 7 % 1.1 0 6 7 % 2.2 6 4 6 % 31 . 1 8 4 2 % Ta n g i b l e A s s e t s 26 8 0 In t a n g i b l e A s s e t s 26 9 0 To t a l P l a n t i n S e r v i c e A i e 2 0 0 1 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % Pr o p e r t y H e l d f o r F u t u r e U s e 20 0 2 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % Pl a n t U n d e r C o n s t r u c t i o n 20 0 3 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2. 8 2 2 9 % 28 . 5 2 9 3 % Te l e p h o n e P l a n t A d j u s t m e n t 20 0 5 To t a l P r o p e r t y , P l a n t a n d E q u i p m e n t 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % 16 . 1 5 2 3 % 0. 9 6 7 6 % 2. 8 2 2 9 % 28 . 5 2 9 3 % Ac c u m u l a t e d D e p r e c i a t i o n ~ P l a n t i n S e r v i c e 31 0 0 10 0 . 0 0 0 0 % 41 . 8 2 9 5 % 8. 4 3 9 0 % 0.0 0 7 0 % 15 . 8 1 1 7 % 0. 7 9 2 0 % 2. 3 4 9 9 % 30 . 7 7 0 9 % Ac c u m u l a t e d D e p r e c i a t i o n ~ P r o p e r t y h e l d f o r F u t u r e U s e ) 32 0 0 Ac c u m u l a t e d A m o r t i z a t i o n - T a n g i b l e P r o p e r t y 34 0 0 Ac c u m u l a t e d A m o r t i z a t i o n - I n t a n g i b l e P r o p e r t y 35 0 0 Ac c u m u l a t e d A m o r t i z a t i o n - T e l e p h o n e P l a n t A d j u s t m e n t 36 0 0 De f e r r e d O p e r a t i n g T a x e s 4~ 0 1 10 0 , 0 0 0 0 % I 41 . 9 9 1 6 % 9. 5 3 6 3 % I ~ I ~ I 16 , 1 5 2 3 % 0.9 6 7 6 % I 2. 8 2 2 9 % 28 . 5 2 9 3 % Oth e r L o n g T e r m L i a b i l i t i e s 43 1 0 10 0 . 0 0 0 0 % 42 . 7 9 4 0 % 8. 4 7 8 0 % 16 . 3 9 7 5 % 0. 8 2 6 9 % 2. 6 0 8 5 % 28 . 8 9 5 1 % Ot h e r D e f e r r e d C r e d i t s 43 7 0 Cu s t o m e r D e p o s i t s 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9. 5 3 6 3 % .1 6 . 1 5 2 3 % 0. 9 6 7 6 % 2. 8 2 2 9 % 28 . 5 2 9 3 % Ne t T e l e p h o n e P l a n t 10 0 . 0 0 0 0 % 42 . 1 5 3 0 % 11 . 0 2 3 6 % (0 , 0 0 9 5 % ) 16 . 6 5 1 1 % 1.2 0 7 7 % 3. 4 5 9 0 % 25 . 5 1 5 2 % In v e s t m e n t A l l o w / D i s a l l o w Ac c u m D e p r / A m o r t A l l o w / D i s a l l o w Ma t e r i a l s a n d S u p p l i e s 12 2 0 1 10 0 . 0 0 0 0 % 1 36 . 7 7 7 3 % 9.2 9 1 5 % I -I -I 19 . 3 7 5 7 % 1.1 0 6 7 % 1 2. 2 6 4 6 % 31 . 1 8 4 2 % In v e s t m e n t i n N o n a f f l i a t e d C o m p a n i e s 14 0 2 Eq u a l A c c e s s E q u i p m e n t 14 3 9 Ot h e r J u r i s d i c t i o n a l A s s e t s 15 0 0 Ca s h W o r k i n g C a p i t l xx i 10 0 . 0 0 0 0 % 1 43 . 8 6 4 1 % 8.5 5 2 7 % 1 :1 0.0 0 0 2 % :1 16 . 0 2 4 1 % 0.8 3 7 9 % I 2. 6 1 3 7 % 28 . 1 0 7 4 % Ne t T e l e p h o n e P l a n t , M & S a n d C W C 10 0 . 0 0 0 0 % 42 . 1 9 7 7 % 10 . 9 6 5 8 % (0 . 0 0 9 3 % ) 16 . 6 3 5 0 % 1.1 9 9 1 % 3.4 3 9 2 % 25 . 5 7 2 6 % Op e r a t i n g E x p e n s e s a n d T a x e s S u m m a l 1 Ne t w o r k S u p p o r t 61 1 0 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9,5 3 £ 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % Ge n e r a l S u p p o r t 61 2 0 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % Ce n t r a l O f f i c e 62 1 0 10 0 . 0 0 0 0 % 50 . 9 6 8 0 % 9.9 5 7 7 % 10 . 6 0 3 3 % 0.7 2 8 2 % 3.7 8 4 0 % 23 . 9 5 8 9 % In f o r m a t i o n O r i g l T e r m 63 1 0 Ca b l e a n d W i r e F a c i l i t i e s 64 1 0 10 0 . 0 0 0 0 % 36 . 7 7 7 3 % 9.2 9 1 5 % 19 . 3 7 5 7 % 1.1 0 6 7 % 2.2 6 4 6 % 31 . 1 8 4 2 % Oth e r P l a n t 65 1 0 Ne t w o r k O p e r a t i o n s 65 3 0 10 0 . 0 0 0 0 % 41 . 9 9 1 6 % 9.5 3 6 3 % 16 . 1 5 2 3 % 0.9 6 7 6 % 2.8 2 2 9 % 28 . 5 2 9 3 % Ac c s s C h a r g e 65 4 0 Fe d e r a l S u p p o r t 65 4 0 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % Ma r k e t i n g 66 1 0 Cu s t o m e r S e r v i c e 66 2 0 10 0 . 0 0 0 0 % 39 . 7 6 0 7 % 23 . 9 1 0 2 % 36 . 3 2 9 1 % Co r p o r a t e O p e r a t i o n s - E x e c u t i v e a n d P l a n n i n g 67 1 0 10 0 . 0 0 0 0 % 42 . 7 9 4 0 % 8.4 7 8 0 % 16 . 3 9 7 5 % 0.8 2 6 9 % 2.6 0 8 5 % 28 . 8 9 5 1 % Co r p o r a t e O p e r a t i o n s - G e n e r a l a n d A d m i n i s t r a t i v e 67 2 0 10 0 . 0 0 0 0 % 45 . 9 4 3 3 % 8.0 1 1 3 % 15 . 4 9 4 8 % 0.7 8 1 3 % 2.4 6 4 9 % 27 . 3 0 4 3 % Su b t o t a l O p e r a t i o n s E x p e n s e 10 0 . 0 0 0 0 % 44 . 9 3 2 7 % 8.4 6 7 5 % 0. 0 0 6 8 % 15 . 4 0 9 9 % 0.7 7 0 5 % 2.4 7 1 4 % 27 . 9 4 1 2 % De p r e c i a t i o n a n d A m o r t i z a t i o n 65 6 0 10 0 . 0 0 0 0 % 46 . 6 2 6 0 % 8.6 5 8 4 % 0. 0 1 8 0 % 14 . 3 4 3 7 % 0.6 9 6 8 % 2.3 1 9 0 % 27 . 3 3 8 1 % Oth e r O p e r a t i n g 72 4 0 10 0 . 0 0 0 0 % 42 . 4 3 1 0 % 9.4 6 4 0 % 16 . 0 2 9 9 % 0. 9 6 0 3 % 2.8 0 1 5 % 28 . 3 1 3 2 % Eq u a l A c c e s s Fix e d C h a r g e s 75 0 0 10 0 . 0 0 0 0 % 42 . 1 5 3 0 % 11 . 0 2 3 6 % (0 . 0 0 9 5 % ) 16 . 6 5 1 1 % 1.2 0 7 7 % 3. 4 5 9 0 % 25 . 5 1 5 2 % Re n t R e v e n u e 52 4 0 To t a l O p e r a t i n g E x p e n s e a n d T a x 10 0 . 0 0 0 0 % 44 . 8 7 9 4 % 8. 4 8 8 7 % 0.0 0 6 7 % 15 . 4 2 3 1 % 0. 7 7 4 5 % 2.4 7 8 5 % 27 . 9 4 9 0 % No n o p e r a t i n g E x p e n s e 73 7 0 Ab a n d o n e d C o n s t r u c t i o n Co n t r i b u t i o n s I 10 0 . 0 0 0 0 % I 44 . 6 6 1 8 % 8.2 0 1 2 % I -I -I 15 . 8 6 2 1 % 0.7 9 9 9 % 1 2. 5 2 3 4 % 27 . 9 5 1 6 % Ot h e r N o n o p e r a t i n g All o w a n c e f o r F u n d s U s e d D u r i n g C o n s t r u c t i o n 73 4 0 Oth e r I n c o m e A d j u s t m e n t s XX X Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 23 of 23 -r 21 2 5 / 2 0 0 8 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 RE V E N U E R E Q U I R E M E N T S U M M A R Y A- 1 St u d y Y e a r ~ 2 0 0 IN T E R S T A T E JU R I S S e c i a l A c c e s s Lo c a l In f o r m a t i o n Eq u i d Tr a n S D o r t Ca r r i e r C o m m o n L i n e B& C In t e r . T~ : t L Ch a ~ b ; e r m CM ; ~ , " m eM - F a c i l Sw i : : i n g Djr ( ~ s s t su r ~ ~ ~ r g e A~ : : S S Tr a n s m i s s i o n Ta n d e m S w Pa y BF P 1 Re c o r d Pr o c e s s 1 e x c h a n g e LI N E DE S C R I P T I O N SO U R C E Id ) (il ii Ik l (I) 1m ) (n ) (0 1 N e t T e l e c o m P l a n t A-2 , L n 4 4 8,6 6 9 , 4 4 9 1, 6 3 0 , 9 7 5 56 , 5 3 2 13 0 , 8 0 0 89 7 , 7 0 9 3,4 5 9 , 1 9 2 2,4 9 4 , 2 4 1 2 R a t e B a s e A d j u s t m e n t # 1 Re c o r d s 3 R A T E B A S E Ln 1 - 2 8,6 6 9 , 4 4 9 1, 6 3 0 , 9 7 5 56 , 5 3 2 13 0 , 8 0 0 89 7 , 7 0 9 3,4 5 9 , 1 9 2 2,4 9 4 , 2 4 1 4 R a t e o f R e t u r n Re c o r d s 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % I 11 . 2 5 0 0 % 11 . 2 5 0 0 % I 11 . 2 5 0 0 % 5 R E T U R N O N R A T E B A S E Ln 3 " ' 4 97 5 , 3 1 3 18 3 , 4 8 5 6,3 6 0 14 , 7 1 5 10 0 , 9 9 2 38 9 , 1 5 9 28 0 , 6 0 2 6 R e t u r n A d j u s t m e n t # 1 Re c o r d s 7 N E T R E T U R N Ln 5 - B 97 5 , 3 1 3 18 3 , 4 8 5 6,3 6 0 14 ' 7 1 5 1 10 0 ' 9 9 2 1 :1 :1 38 9 , 1 5 9 :1 28 0 , 6 0 2 8 F i x e d C h a r g e s A-1 0 , L n 2 5 14 4 , 7 1 7 24 , 0 2 9 1, 0 3 9 1,7 1 5 34 , 7 7 5 48 , 0 2 3 35 , 1 3 6 9 A m o r t i z a t i o n o f E x c e s s D e f T a x e s A-1 0 , L n 4 7 10 C a p i t a l i z e d P a y r o l l T a x e s A-1 O , L n 5 0 11 D e p r e c i a t i o n A d j u s t m e n t A-1 0 , L n 5 3 12 F I T A l l o w a n c e s l i s a l l o w a n c e s A-1 4 , L n 1 8 13 I n c A d j A l l o c o n 2 0 0 1 A-1 0 , L n 5 9 14 I n c A d j A l l o c o n B i g 3 E x p A-1 0 , L n 6 0 15 T o t a l M i s c I n c Ad j u s t m e n t A-1 0 , L n 6 1 14 4 , 7 1 7 24 , 0 2 9 1, 0 3 9 1,7 1 5 34 , 7 7 5 48 , 0 2 3 35 , 1 3 6 16 A F T E R T A X I N C O M E No t e 1 83 0 , 5 9 6 15 9 , 4 5 5 5,3 2 1 13 , 0 0 0 66 , 2 1 7 34 1 , 1 3 6 24 5 , 4 6 7 17 S t a t e I n c o m e T a x Ln 5 9 l e s s I T C 91 , 1 2 5 17 , 4 9 4 58 4 1, 4 2 6 7,2 6 5 37 , 4 2 6 26 , 9 3 0 18 S t a t e I T C A m o r t i z a t i o n A- 1 0 , L n 4 5 19 N e t F e d e r a l In c o m e T a x Ln 5 0 39 3 , 2 0 8 75 , 4 8 7 2,5 1 9 6,1 5 4 31 , 3 4 7 16 1 , 4 9 5 11 6 , 2 0 5 20 F e d e r a l l T C A m o r t i z a t i o n A- 1 0 , L n 4 4 21 O p e r a t i n g E x p e n s e s & T a x e s A- 3 , L n 2 4 3,5 8 3 , 6 0 4 53 6 , 1 5 6 29 , 8 8 4 30 , 6 1 3 1,0 9 1 , 2 8 1 96 0 , 4 9 3 81 8 , 2 4 9 1 63 , 3 7 1 53 , 5 5 6 22 U n c o l l e c t b l e s A-1 0 , L n 5 7 23 O t h e r A d j u s t m e n t s ( N e t R R ) Re c o r d s 24 N E T R E V E N U E R E Q U I R E M E N T Ln 7 + 1 9 . . 2 3 - 2 4 5,0 4 3 , 2 5 0 I 81 2 , 6 2 2 39 , 3 4 7 52 , 9 0 9 1 1, 2 3 0 , 8 8 6 1 -I -I 1, 5 4 8 , 5 7 4 -I 1,2 4 1 , 9 8 6 1 63 , 3 7 1 53 , 5 5 6 25 G r o s s R e c e i p t T a x No t e 2 26 7 3 4 0 A l w F d s U s e d D u r C o n s t r A- 1 0 , L n 1 5 27 S U B T O T A L R E V E N U E R E Q U I R E M E N T Ln 2 4 + 2 5 - 2 6 28 L o c a l S w i t c h i n g S u p p o r t LS S A l g o r i t h m 29 6 5 4 0 A c c s s E x p e n s e - F e d e r a l S u p p o r t A- 1 2 , L n 2 2 30 A d j u s t e d R e v e n u e R e q u i r e m e n t x l L S S & 6 5 4 0 Ln 2 7 - 2 8 - 2 9 31 T r a n s f e r 3 0 % o f L o c a l S w R e v R e q t o C L Ln 3 0 e " ' 3 0 % 32 I n t e r s t a t e T I C R e v e n u e s Re c o r d s 33 R e v i s e d R e v R e q p r i o r t o T I C R e a l l o c a t i o n Ln 3 0 + 3 1 +3 2 34 D i s t r i b u t i o n Ln 3 3 1 3 a 35 I n t e r s t a t e T I C R e a l l o c a t i o n Ln 3 2 a ' " 3 4 36 T O T A L R E V E N U E R E Q U I R E M E N T Ln 2 7 + 3 1 - 3 2 + 3 5 5, 0 4 3 , 2 5 0 85 8 , 4 5 9 41 , 5 6 6 55 , 8 9 3 1,1 2 7 , 9 2 4 1 .1 -I 1,4 0 7 , 2 2 2 -I 1,4 3 5 , 2 5 8 1 63 , 3 7 1 53 , 5 5 6 1 IN C O M E T A X E S 1 37 N e t R e t u r n Ln 7 97 5 , 3 1 3 18 3 , 4 8 5 6, 3 6 0 14 , 7 1 5 10 0 ' 9 9 2 1 :1 :1 38 9 , 1 5 9 :1 28 0 , 6 0 2 38 F i x e d C h a r g e s Ln 8 14 4 , 7 1 7 24 , 0 2 9 1,0 3 9 1,7 1 5 34 , 7 7 5 48 , 0 2 3 35 , 1 3 6 39 A m o r t i z a t i o n o f E x c e s s D e f e r r e d T a x e s Ln 9 40 C a p i t l i z e d P a y r o l l T a x e s Ln 1 0 41 D e p r e c i a t i o n A d j u s t m e n t Ln 1 1 42 F I T A l I o w a n c e s i s a l l o w a n c e s Ln 1 2 43 In c A d j A l l o c o n 2 0 0 1 Ln 1 3 44 In c A d j A l l o c o n B i g 3 E x p Ln 1 4 45 F e d e r a l I T C A m o r t i z a t i o n A-1 0 , L n 4 4 46 To t a l In c o e A d j u s t m e n t s Ln 3 8 + 4 2 . . 4 4 14 4 , 7 1 7 24 , 0 2 9 1,0 3 9 1,7 1 5 34 , 7 7 5 48 , 0 2 3 35 , 1 3 8 47 F e d e r a l T a x a b l e In c o m e Ln 3 7 - 4 6 G r o s s U p 1,2 2 3 , 8 0 4 23 4 , 9 4 2 7,8 4 0 19 , 1 5 4 97 , 5 6 4 50 2 , 6 3 1 36 1 , 6 7 2 48 F e d e r a l In c o m e T a x 32 . 1 3 0 0 % 39 3 , 2 0 8 75 , 4 8 7 2,5 1 9 6,1 5 4 31 , 3 4 7 16 1 , 4 9 5 11 6 , 2 0 5 49 F e d e r a l S u r - T a x All o c a t i o n Re c o r d s 50 N e t F e d e r a l In c o m e T a x Ln 4 8 - 4 9 39 3 , 2 0 8 75 , 4 8 7 2,5 1 9 6,1 5 4 31 , 3 4 7 16 1 , 4 9 5 11 6 , 2 0 5 51 N e t R e t u r n Ln 3 7 97 5 , 3 1 3 18 3 , 4 8 5 6,3 6 0 14 , 7 1 5 10 0 , 9 9 2 38 9 , 1 5 9 28 0 , 6 0 2 52 F i x e d C h a r g e s Ln 3 8 14 4 , 7 1 7 24 , 0 2 9 1,0 3 9 1,7 1 5 34 , 7 7 5 48 , 0 2 3 35 , 1 3 6 53 O t h e r S I T A d j u s t m e n t s 54 F e d e r a l I n c o m e T a x Ln 4 8 39 3 , 2 0 8 75 , 4 8 7 2,5 1 9 6,1 5 4 31 , 3 4 7 16 1 , 4 9 5 11 6 , 2 0 5 55 S t a t e T a x a b l e I n c o m e Ln 5 1 - 5 4 G r o s s U p 1,2 2 3 , 8 0 4 25 2 , 4 3 6 8,4 2 4 20 , 5 8 1 10 4 , 8 2 9 54 0 , 0 5 7 38 8 , 6 0 2 56 S t a t e I n c o m e T a x 6.9 3 0 0 % 91 , 1 2 5 17 , 4 9 4 58 4 1,4 2 6 7,2 6 5 37 , 4 2 6 26 , 9 3 0 57 S t a t e S u r - T a x Al l o c a t i o n Re c o r d s 58 S t a t e I T C A m o r t i z a t i o n A-1 0 , L n 4 5 59 N e t S t a t e I n c o m e T a x Ln 5 6 - 5 7 91 , 1 2 5 1 17 , 4 9 4 58 4 1, 4 2 6 1 7,2 6 5 1 .1 .1 37 , 4 2 6 -I 26 , 9 3 0 No t e 1 : L n 7 + 1 2 . . 1 6 - 8 . . 1 1 No t e 2 : B a s e d o n t h e s e S t a t u t o r y R a t e s : Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s . L L P 1o f 2 6 21 2 5 / 2 0 0 8 Alb i o n T e l e p h o n e C o m p a n y . R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 6 SE P A R A T E D T E L E C O M M U N I C A T I O N S P L A N T S U M M A R Y A-2 Pa g e 1 o f 2 IN T E R S T A T E JU R I S So e c i a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s a r t Ca r l i e r C o m m o n U n e B& C In t e r - TO T A L Ch a n T e r m eM - T e r m eM - F a c i l Sw i t c h i n g Di r A s s t su r ~ ~ ~ r g e A~ ~ S S Tra n s m i s s i o n Ta n d e m S w p~ i i B~ P R~ ~ r d pr ~ ~ ~ s s ex c ~ o ~ n g e LIN E DE S C R I P T I O N SO U R C E a b ro ) (d ) (e ) I~ (i \ ü) 1 2 1 1 0 L a n d & S u p p o r t A s s e t s A- 4 , L n 1 2 1,4 1 9 , 2 3 5 23 5 , 6 5 4 10 , 1 8 7 16 . 8 1 8 34 1 , 0 4 0 47 0 , 9 6 3 34 4 , 5 7 3 22 2 1 0 C O E - S w i t c h i n g A- 5 , L n 2 8 4, 2 6 4 , 5 4 5 4,2 6 4 , 5 4 5 3 2 2 2 0 C O E - O p e r a t o r A- 5 , L n 1 5 4 2 2 3 0 C O E - T r a n s m i s s i o n A- 5 , L n 7 1 3,4 4 5 , 8 1 8 1,1 3 2 , 8 0 2 12 7 , 3 7 8 1,1 4 3 , 4 7 0 1,0 4 2 , 1 6 8 52 3 1 0 t n f o O r i g f T e r m E q u i p A- 6 , L n 1 4 62 4 1 0 C & W F A- 7 , L n 3 9 10 , 0 3 6 , 5 0 6 1,8 1 3 , 9 4 1 21 0 , 2 9 9 4, 7 4 5 , 7 0 8 3,2 6 6 , 5 6 0 7 To t a l C O E , l O T , C & W F Ln 2 . . 6 17 , 7 4 6 , 8 6 9 2,9 4 6 , 7 4 3 12 7 , 3 7 8 21 0 , 2 9 9 4,2 6 4 , 5 4 5 5,8 8 9 , 1 7 7 4,3 0 8 , 7 2 7 8 Dis t r i b u t i o n o f l i n e 7 Ln 7 f 7 a 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 9 E q u a l A c c e s s . I n v e s t m e n t A- 9 , L n 2 0 , ,! ! i ' , B l is ' ,', ~ ' , 0 ~ i': : ¡ ¡ ¿ B l f 10 2 6 8 0 T a n g i b l e A s s e t s A.8 , L n 3 0 "ii " 11 T E L E C O M P L T I N S V C . E X C L 2 6 9 0 Ln 1 + 7 + 9 + 1 0 19 , 1 6 6 , 1 0 4 3,1 8 2 , 3 9 7 13 7 , 5 6 5 22 7 , 1 1 6 4,6 0 5 , 5 8 4 6,3 6 0 , 1 4 1 4,6 5 3 , 3 0 1 12 D i s t r i b u t i o n o f l i n e 1 1 Ln 1 1 / 1 1 a 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 13 2 6 9 0 I n t a n g i b l e A s s e t s A. 8 , L n 3 4 14 2 0 0 1 T E l E C O M P L A N T I N S V C Ln 1 1 + 1 3 19 , 1 6 6 , 1 0 4 3,1 8 2 , 3 9 7 13 7 , 5 6 5 22 7 , 1 1 6 4,6 0 5 , 5 8 4 6,3 6 0 , 1 4 1 4,6 5 3 , 3 0 1 15 D i s t r i b u t i o n o f l i n e 1 4 Ln 1 4 / 1 4 a 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % , 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 16 2 0 0 2 P r o p H I d F u t T e l e c o m U s e A. 9 , L n 5 43 , 7 4 8 7,2 6 4 31 4 51 8 10 , 5 1 3 14 , 5 1 7 10 , 6 2 1 17 2 0 0 3 P l a n t U n d e r C o n s t A.9 , L n 9 20 0 , 5 7 6 33 , 3 0 4 1,4 4 0 2, 3 7 7 48 , 1 9 8 66 , 5 6 0 48 , 6 9 7 18 2 0 0 5 T e l e c o m P l a n t A d j u s t m e n t A. 9 . L n 1 3 19 T O T A L T E L E C O M P L A N T Ln 1 4 + 1 6 . . 1 8 19 , 4 1 0 , 4 2 8 3,2 2 2 , 9 8 5 13 9 , 3 1 9 23 0 , 0 1 2 4,6 6 4 , 2 9 5 6,4 4 1 , 2 1 8 4,7 1 2 , 6 2 0 20 1 2 2 0 M a t e r i a l s a n d S u p p l i e s A. 9 , L n 1 8 82 , 6 5 2 13 , 7 2 4 59 3 97 9 19 , 8 6 1 27 , 4 2 8 20 , 0 6 7 21 1 5 0 0 O t h e r J u r i s A s s e t s . N e t A. 1 5 , L n 1 1 22 3 1 0 0 A c c m u l a t e d D e p r e c i a t i o n A. 1 5 , L n 1 8 10 , 8 7 1 , 5 2 6 1,6 1 3 , 6 6 7 83 , 7 2 4 10 0 , 7 5 8 3,7 9 7 , 9 5 7 3,0 2 5 , 3 4 7 2,2 5 0 , 0 7 3 23 E q u a l A c c e s s - A c c u m D e p r e c i a t i o n A. 9 , L n 2 2 24 3 2 0 0 A c e D e p . H l d f o r F u t U s e A. 1 5 , L n 2 0 25 3 4 0 0 A c c u m A m o r t . T a n g i b l e A- 1 5 , L n 2 4 26 3 5 0 0 A c c u m A m o r t . l n t a n g i b l e A. 1 5 , L n 2 5 27 3 6 0 0 A c c u m A m o r t - O t h e r A- 1 5 , L n 2 6 28 4 1 0 0 N e t Cu r De f O p In c Ta x e s A. 1 5 , L n 4 7 29 4 3 4 0 N o n c u r D e f O p e r I n c T a x A- 1 5 , L n 5 8 15 2 , 8 1 2 25 , 3 7 3 1,0 9 7 1,8 1 1 36 , 7 2 1 50 , 7 1 0 37 , 1 0 1 30 E q u a l A c c s s - D e f e r r e d O p e r I n c T a x e s A. 9 , L n 2 3 31 4 3 6 0 O t h e r D e f e r r e d C r e d i t s - N e t A- 1 5 , L n 5 9 32 4 3 7 0 O t h e r J u r l i a b & D e f C r e d i t s - N e t A- 1 5 , L n 6 1 33 N E T T E L E C O M P L A N T ln 1 9 + 2 0 . 2 1 . . 3 2 8,4 6 8 , 7 4 2 1, 5 9 7 , 6 4 9 55 , 0 9 1 12 8 , 4 2 2 84 9 , 4 7 9 3,3 9 2 , 5 8 8 2,4 4 5 , 5 1 2 34 D i s t r i b u t i o n o f l i n e 3 3 Ln 3 3 1 3 3 a 10 0 . 0 0 0 0 % 18 . 8 6 5 2 % 0.6 5 0 5 % 1. 5 1 6 4 % 10 . 0 3 0 8 % 40 . 0 6 0 1 % 28 . 8 7 6 9 % 35 1 4 0 2 R u r a l T e l B a n k S t o c k A-9 , L n 1 5 ,. 1 f l ~ 16 . ~ 27 9 ~ ,, ~ W ; 78 , 2 6 9 ~¡ i , i ~ i ' , ' . ' ; ; k , ~ ~ , \ " " ¡ ~ ? 6 ~ 36 C a s h W o r k i n g C a p i t l A.9 , L n 1 9 23 5 , 8 6 1 ";, , ', C ' ' ' ' ' ! i i 37 E q u a l A c c s s . U n a m o r t i z e d E x p e n s e s A-9 , L n 2 4 -R ; , :- 38 I n v e s t A l l o w / D i s a l l o w a n c e s A.9 , L n 2 9 39 A c c u m D e p r / A m o r t A l l o w / D i s a l l o w A-1 5 , L n 6 4 40 4 0 4 0 C u s t o m e r D e p o s i t s A-1 5 , L n 2 9 2,5 7 9 42 8 19 31 62 0 85 6 62 6 41 4 3 1 0 O t h e r L o n g . T e r m l i a b i l i t i e s A-1 5 , L n 4 9 32 , 5 7 5 5,4 0 9 23 4 38 6 7,8 2 8 10 , 8 1 0 7,9 0 9 42 O t h e r T e l e c o m P I A d j u s t Re c o r d s 43 N E T T E L E C O M P L A N T A N D Ln 3 3 + 3 5 . . 3 9 + 4 2 44 OT H E R R A T E B A S E I T E M S .4 0 . . 1 8,6 6 9 , 4 4 9 1,6 3 0 , 9 7 5 56 , 5 3 2 13 0 , 8 0 0 89 7 , 7 0 9 3,4 5 9 , 1 9 2 2,4 9 4 , 2 4 1 45 Dis t r i b u t i o n o f l i n e 4 4 Ln 4 4 / 4 4 a 10 0 , 0 0 0 0 % 18 . 8 1 2 9 % 0. 6 5 2 1 % 1.5 0 8 7 % 10 . 3 5 4 9 % 39 . 9 0 0 9 % 28 . 7 7 0 5 % Pro p r i e t a i y I n f o r m a t i o n Mo s s A d a m s , L L P 20 f 2 6 Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 LI N E DE S C R I P T I O N 46 2 0 0 1 T E L E C O M P L A N T I N S V C 47 E q u a l A c c s s A d j u s t m e n t 48 2 0 0 1 T E L E C O M P L A N T I N S V C ( E A / L S ) 49 D i s t r i b u t i o n o f U n e 4 8 50 G S F , C O E , I O T , C & W F , G r o s s E q A c s 51 E q u a l A c c e s s A d j u s t m e n t 52 G S F , C O E , I O T , C & W F , E q A c s ( L S ) 53 D i s t r i b u t i o n o f U n e 5 2 54 G S F , C O E , I O T , C & W F , G r o s s E q A c s 55 D i s t r i b u t i o n o f L i n e 5 4 56 C O E , I O T , C & W F , G r o s s E q A c s 57 E q u a l A c c e s s I n v e s t m e n t 58 C O E , I O T , C & W F , E q A c s 59 D i s t r i b u t i o n o f U n e 5 8 60 G S F , C O E , I O T , C & W F , E q A c s ( L S ) 61 ( T r a n s , S w i t c h , C C L o n l y ) 62 D i s t r i b u t i o n o f L i n e 6 1 63 G S F , C O E , / O T , C & W F , E q A c s ( L S ) 64 ( S p e c i a l A c c e s s o n l y ) 65 D i s t r i b u t i o n o f L i n e 6 4 66 C O E , I O T , C & W F 67 x l C C L , 8 & C , I X 68 D i s t r i b u t i o n o f L i n e 6 7 69 C O E S w i t c h i n g I n v e s t m e n t 70 E q u a l A c c e s s I n v e s t m e n t 71 C O E S w i t c h i n g , E q u a l A c c s s I n v e s t m e n t 72 D i s t r i b u t i o n o f L i n e 7 1 73 C & W F C a t 1 . 3 74 D i r e c t A s s i g n - M S G ( 1 . 3 ) 75 C O E , I O T , C & W F x l C a t 1 . 3 76 D i s t r i b u t i o n o f L i n e 7 5 2/2 5 1 2 0 0 8 SE P A R A T E D T E L E C O M M U N I C A T I O N S P L A N T S U M M A R Y A- 2 Pa g e 2 o f 2 SO U R C E Ln 1 4 No t e 1 Ln 4 6 + 4 7 Ln 4 8 / 4 8 a Ln 1 + 7 + A - 9 L n 2 9 No t e 1 Ln 5 0 + 5 1 Ln 5 2 1 5 2 a Ln 1 + 7 + A - 9 L n 2 9 19 , 1 6 6 , 1 0 4 Ln 5 4 / 5 4 a 10 0 . 0 0 0 0 % A- 2 , L n 7 17 , 7 4 6 , 8 6 9 A- 2 , L n 9 Ln 5 6 + 5 7 17 , 7 4 6 , 8 6 9 Ln 5 8 1 5 8 a 10 0 . 0 0 0 0 % Ln 5 2 15 , 6 1 9 , 0 2 6 Ln 6 1 / 6 1 a 10 0 . 0 0 0 0 % Ln 5 2 3,5 4 7 , 0 7 8 Ln 6 4 / 6 4 a 10 0 . 0 0 0 0 % Ln 7 13 , 4 3 8 , 1 4 1 Ln 6 7 / 6 7 a 10 0 . 0 0 0 0 % A- 5 , L n 2 8 4,2 6 4 , 5 4 5 A- 9 , L n 2 1 Ln 6 9 + 7 0 4,2 6 4 , 5 4 5 Ln 7 1 / 7 1 a 10 0 . 0 0 0 0 % A-7 , L n 6 3,2 6 6 , 5 6 0 A-7 , L n 7 Ln 7 - 7 3 . . 7 4 14 , 4 8 0 , 3 0 9 Ln 7 5 1 7 5 a 10 0 . 0 0 0 0 % No t e 1: Eq u a l A c c e s s t r a n s f e r r e d t o L o c a l S w i t c h i n g f o r d i s t r i b u t i o n Pr o p r i e t a r y I n f o r m a t i o n In t e r - ex c h a n g e 0) In f o r m a t i o n Di r A s s ~ r c h a r g e o ( 9 ) 6, 3 6 0 , 1 4 1 4 , 6 5 3 , 3 0 1 ~K - , . _ 6, 3 6 0 , 1 4 1 4 , 6 5 3 , 3 0 1 33 . 1 8 4 3 % 2 4 . 2 7 8 8 % 3, 1 8 2 , 3 9 7 1 3 7 , 5 6 5 2 2 7 , 1 1 6 1 4 , 6 0 5 , 5 8 4 i - I - I 6 , 3 6 0 , 1 4 1 4 , 6 5 3 , 3 0 1 16 . 6 0 4 3 % 0 . 7 1 7 8 % 1 . 1 8 5 0 % 2 4 . 0 2 9 8 % _ . 3 3 . 1 8 4 3 % 2 4 . 2 7 8 8 % 21 0 , 2 9 9 21 0 , 2 9 9 1.1 8 5 0 % I I I 6,3 6 0 , 1 4 1 40 . 7 2 0 5 % I I 3, 1 8 2 , 3 9 7 1 3 7 , 5 6 5 2 2 7 , 1 1 6 89 . 7 1 8 8 % 3 . 8 7 8 3 % 6 . 4 0 2 9 % 2, 9 4 6 , 7 4 3 1 2 7 , 3 7 8 2 1 0 , 2 9 9 21 . 9 2 8 2 % 0 . 9 4 7 9 % 1 . 5 6 4 9 % Mo s s A d a m s , L L P 30 f 2 6 21 2 5 1 2 0 0 8 Al b i o n T e l e p h o n e C o m p a n y . R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 6 SE P A R A T E D E X P E N S E S U M M A R Y A- 3 IN T E R S T A T E JU R I S S 'a l A c c s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s D o r t Ca r r i e r C o m m o n L i n e S& C In t e r . T~ ~ t L ch a 7 b ~ e r m CM ; ~ \ e r m CM i : , a c i i SW i : ~ ~ ¡ n 9 Di r ( ~ s s t su r ~ ~ ~ r g e Ac c e s s Tr a n s m i s s i o n Ta n d e m S w Pa y SF P Re c o r d Pro c e s s ex c h a n g e LIN E DE S C R I P T I O N SO U R C E (h ) ni (j (k ) (I (m ) (n ) (0 ) 1 P i t S p e c E x p A c c s 6 1 1 0 , 6 1 2 0 2 6 2 1 0 , 6 2 2 0 , 6 2 3 0 , 6 3 1 0 , 6 4 1 0 A- 1 1 , L n 3 2 1,1 5 3 , 0 7 2 19 4 , 5 7 2 10 , 7 2 2 11 , 5 0 3 31 4 , 0 4 7 35 5 , 8 3 0 26 6 , 3 9 8 3 P I N o n s p e c A c c u n t 6 5 1 0 , 6 5 3 0 , 6 5 4 0 A. 1 2 , L n 2 4 14 1 , 7 4 2 17 , 5 3 9 75 8 1,2 5 2 25 , 3 8 2 35 , 0 5 2 61 , 7 6 0 4 G u s t O p e r A c e t s 6 6 1 0 , 6 6 2 0 A- 1 3 , L n S S 11 6 , 9 3 4 4, 8 5 3 27 45 1,5 8 3 2,1 8 6 30 , 2 9 1 42 , 2 4 6 35 , 7 0 2 5 T O T A L B I G T H R E E E X P E N S E S Ln 2 . . 4 1,4 1 1 , 7 4 8 21 6 , 9 6 4 11 , 5 0 7 12 , 7 9 9 34 1 , 0 1 2 39 3 , 0 6 8 35 8 , 4 4 9 42 , 2 4 6 35 , 7 0 2 6 D i s t r i b u t o n o f U n e 5 Ln 5 / 5 a 10 0 . 0 0 0 0 % 15 . 3 6 8 5 % 0.8 1 5 1 % 0.9 0 6 6 % 24 . 1 5 5 3 % 27 . 8 4 2 7 % 25 . 3 9 0 5 % 2.9 9 2 4 % 2,5 2 8 9 % 7 P i t Sp e c Ex p Ac c L s xl 6 1 1 0 , 61 2 0 A- 1 1 , L n 3 1 1,0 7 5 , 0 8 6 18 1 , 6 2 3 10 , 1 6 2 10 , 5 7 9 29 5 , 3 0 7 32 9 , 9 5 1 24 7 , 4 6 4 8 P I N o n s p e c A c c u n t 6 5 1 0 , 6 5 3 0 , 6 5 4 0 A- 1 2 , L n 2 4 14 1 , 7 4 2 17 , 5 3 9 75 8 1,2 5 2 25 , 3 8 2 35 , 0 5 2 61 , 7 6 0 9 C u s t O p e r A c e s 6 6 1 0 , 6 6 2 0 x l a m o u n t s 10 al l o c a t e d o n G S F A- 1 3 , L n 5 4 11 0 , 8 3 4 4, 6 9 1 26 43 87 9 1,2 1 4 28 , 6 2 6 40 , 8 4 0 34 , 5 1 5 11 T O T A L M O D I F I E D B I G T H R E E E X P E N S E S Ln 7 . . 1 0 1,3 2 7 , 6 6 3 20 3 , 8 5 3 10 , 9 4 7 11 , 8 7 4 32 1 , 5 6 8 36 6 , 2 1 7 33 7 , 8 4 9 40 , 8 4 0 34 , 5 1 5 12 D i s t r i b u t i o n o f L i n e 1 1 Ln 1 1 / 1 1 a 10 0 . 0 0 0 0 % 15 . 3 5 4 3 % 0.8 2 4 5 % 0.8 9 4 3 % 24 . 2 2 0 6 % 27 . 5 8 3 6 % 25 . 4 4 6 9 % 3.0 7 6 1 % 2.5 9 9 6 % 13 P l a n t S p e c i f i c E x p e n s e s A. 1 1 , l n 3 2 1,1 5 3 , 0 7 2 19 4 , 5 7 2 10 , 7 2 2 11 , 5 0 3 31 4 , 0 4 7 35 5 , 8 3 0 26 6 , 3 9 8 14 P l a n t N o n s p e c i f i c E x p e n s e s A. 1 2 , L n 3 8 1,5 2 4 , 5 7 8 21 4 , 4 4 5 12 , 7 8 4 11 , 6 8 1 58 5 , 1 6 6 37 8 , 3 5 6 32 2 , 1 4 7 15 C u s t o m e r O p e r a t i o n s E x p e n s e s A- 1 3 , L n 5 5 11 6 , 9 3 4 4, 8 5 3 27 45 1,5 8 3 2,1 8 6 30 , 2 9 1 42 , 2 4 6 35 , 7 0 2 16 C o r p o r a t e O p e r a t i o n s E x p e n s e s A. 1 4 , L n 1 2 70 5 , 9 7 0 10 8 , 4 9 7 5,7 5 5 6,4 0 1 17 0 , 5 2 9 19 6 , 5 6 1 17 9 , 2 4 9 21 , 1 2 6 17 , 8 5 4 17 7 1 0 0 O t h O p e r I n c & E x p e n s e s A- 1 0 , L n 1 7 + 1 8 18 7 3 0 0 C o n t r i b u t i o n s A- 1 0 , L n 1 6 8,8 8 3 1,4 7 5 64 10 5 2,1 3 5 2,9 4 8 2,1 5 7 19 T O T A L O P E R A T I N G E X P E N S E S Ln 1 3 . . 1 8 3,5 0 9 , 4 3 7 52 3 , 8 4 2 29 , 3 5 2 29 , 7 3 4 1,0 7 3 , 4 5 9 93 5 , 8 8 2 80 0 , 2 4 2 63 , 3 7 1 53 , 5 5 6 20 O p e r a t i n g T a x e s A. 1 4 , L n 2 2 74 , 0 5 6 12 , 2 9 7 53 2 87 8 17 , 7 9 6 24 , 5 7 5 17 , 9 8 0 21 E q u a l A c c s s E x p e n s e s A- 1 4 , L n 3 0 22 E x p e n s e A l l o w l D i s a l l o w a n c e s A. 1 4 , L n 3 5 11 0 18 1 1 26 37 27 23 5 2 4 0 R e n t R e v e n u e s A. 1 0 , L n 4 3 24 T O T A L O P E R A T I N G E X P & T A X E S Ln 1 9 + 2 0 . . 2 2 - 2 3 3,5 8 3 , 6 0 4 53 6 , 1 5 6 29 , 8 8 4 30 , 6 1 3 1,0 9 1 , 2 8 1 96 0 , 4 9 3 81 8 , 2 4 9 63 , 3 7 1 53 , 5 5 6 25 D i s t r i b u t i o n o f U n e 2 4 Ln 2 4 1 2 4 a 10 0 . 0 0 0 0 % 14 . 9 6 1 4 % 0. 8 3 3 9 % 0.8 5 4 3 % 30 . 4 5 2 1 % 26 . 8 0 2 4 % 22 . 8 3 3 1 % 1. 7 6 8 4 % 1. 4 9 4 5 % I IN C O M E T A X C A L C U L A T I O N I 26 O t h e r O p e r a t i n g I n c o m e A- 1 4 , L n 2 8 27 A F U D C A- 1 0 , L n 1 5 28 O p e r a t i n g R e v e n u e A- 1 4 , L n 2 9 - L n 2 6 29 U n c o l l e c t i b l e R e v e n u e A- 1 0 , L n 5 7 30 I n c o m e E f f e c t J u r i s d i c t i o n a l D i f f e r e n c e A- 1 0 , L n 5 9 31 I R S I n c o m e A d j u s t m e n t A- 1 0 , L n 6 0 32 T O T A L R E V E N U E & O T H E R I N C O M E Ln 2 6 . . 3 1 33 C o n t r i b u t i o n s A.1 0 , L n 1 6 8,8 8 3 1,4 7 5 64 10 5 2,1 3 5 2,9 4 8 2,1 5 7 34 O p e r a t i n g E x p e n s e s Ln 1 9 - L n 3 3 3,5 0 0 , 5 5 4 52 2 , 3 6 7 29 , 2 8 8 29 , 6 2 9 1, 0 7 1 , 3 2 4 93 2 , 9 3 4 79 8 , 0 8 5 63 , 3 7 1 53 , 5 5 6 35 O p e r a t i n g T a x e s A-1 4 , L n 2 2 74 , 0 5 6 12 , 2 9 7 53 2 87 8 17 , 7 9 6 24 , 5 7 5 17 , 9 8 0 36 F i x e d C h a r g e s A-1 0 , L n 2 5 14 4 , 7 1 7 24 , 0 2 9 1,0 3 9 1, 7 1 5 34 , 7 7 5 48 , 0 2 3 35 , 1 3 6 37 T O T A L O P E R A T I N G E X P E N S E S Ln 3 3 . . 3 6 3,7 2 8 , 2 1 1 56 0 , 1 6 7 30 , 9 2 2 32 , 3 2 7 1, 1 2 6 , 0 3 0 1, 0 0 8 , 4 8 0 85 3 , 3 5 8 63 , 3 7 1 53 , 5 5 6 38 S t a t e T a x a b l e I n c o m e Ln 3 2 . L n 3 7 (3 , 7 2 8 , 2 1 1 ) (5 6 0 , 1 6 7 ) (3 0 , 9 2 2 ) (3 2 , 3 2 7 ) (1 , 1 2 6 , 0 3 0 ) (1 , 0 0 8 , 4 8 0 ) (8 5 3 , 3 5 8 ) (6 3 , 3 7 1 ) (5 3 , 5 5 6 ) 39 S t a t e I n c o m e T a x 6.9 3 0 0 % (2 5 8 , 3 6 5 ) (3 8 , 8 2 0 ) (2 , 1 4 3 ) (2 , 2 4 0 ) (7 8 , 0 3 4 ) (6 9 , 8 8 8 ) (5 9 , 1 3 8 ) (4 , 3 9 2 ) (3 , 7 1 1 ) 40 F e d e r a l T a x a b l e I n c o m e Ln 3 2 - L n 3 7 (3 , 7 2 8 , 2 1 1 ) (5 6 0 , 1 6 7 ) (3 0 , 9 2 2 ) (3 2 , 3 2 7 ) (1 , 1 2 6 , 0 3 0 ) (1 , 0 0 8 , 4 8 0 ) (8 5 3 , 3 5 8 ) (6 3 , 3 7 1 ) (5 3 , 5 5 6 ) 41 S t a t e I n c o m e T a x Ln 3 9 (2 5 8 , 3 6 5 ) (3 8 , 8 2 0 ) (2 , 1 4 3 ) (2 , 2 4 0 ) (7 8 , 0 3 4 ) (6 9 , 8 8 8 ) (5 9 , 1 3 8 ) (4 , 3 9 2 ) (3 , 7 1 1 ) 42 N e t F e d e r a l T a x a b l e I n c o m e Ln 4 0 - L n 4 1 (3 , 4 6 9 , 8 4 6 ) (5 2 1 , 3 4 8 ) (2 8 , 7 7 9 ) (3 0 , 0 8 6 ) (1 , 0 4 7 , 9 9 6 ) (9 3 8 , 5 9 3 ) (7 9 4 , 2 2 0 ) (5 8 , 9 8 0 ) (4 9 , 8 4 4 ) 43 F e d e r a l In c o m e T a x 32 . 1 3 0 0 % (1 , 1 1 4 , 8 6 1 ) (1 6 7 , 5 0 9 ) (9 , 2 4 7 ) (9 , 6 6 7 ) (3 3 6 , 7 2 ) (3 0 1 , 5 7 0 ) (2 5 5 , 1 8 3 ) (1 8 , 9 5 0 ) (1 6 , 0 1 5 ) 44 A m o r t i z a t i o n o f I n v e s t m e n t T a x C r e d i t A-1 0 , L n 4 4 16 7 , 5 0 9 \ 19 , 6 6 ; '1 8 , 9 5 Ò ' (1 6 , 0 1 ¿ 45 F e d e r a l I n c o m e T a x Ln 4 3 - L n 4 1,1 1 4 , 8 6 1 9,2 4 7 33 6 , 7 2 1 30 1 5 7 0 (2 5 5 , 1 8 3 Pro p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 40 f 2 6 Al b i o n T e l e p h o n e C o m p a n y . R e s t a t e m e n t St u d y A r e a ; 4 7 2 2 1 3 St u d y Y e a r . 2 0 0 6 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 C O E , l O T , C & W F D i s t r 2 M o d i f i e d B i g T h r e e E x p e n s e s D i s t r SS E T S A P P O R T I O N M E N T ,0 r t A s s e t s Su p p o r t A s s e t s - J o i n t x l G S F - B & C Ge n e r a l S u p p o r t F a c i l t i e s - B & C Dir e c t A s s i g n m e n t To t a l S u p p o r t A s s e t s Di s t r i b u t i o n o f l i n e 7 SO U R C E A.2 , L n 8 A.3 , L n 1 2 GE N E R A L S U P P O R T F A C I L I T I E S IN T E R S T A T E JU R I S S e d a l A c c s s Lo c a l In f o r m a t i o n TO T A L Ch a n T e r m CM - T e r m CM - F a c i l SW i t ~ h i n g I Dir A s s t Su r c h a r g e (a ) bl (e l d (0 (9 ) 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0. 7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 10 0 . 0 0 0 0 % 15 . 3 5 4 3 % 0. 8 2 4 5 % 0.8 9 4 3 G A , 24 . 2 2 0 6 % 1,4 1 9 , 2 3 5 23 5 , 6 5 4 10 , 1 8 7 16 , 8 1 8 34 1 , 0 4 0 1,4 1 9 , 2 3 5 23 5 , 6 5 4 10 , 1 8 7 16 , 8 1 8 34 1 , 0 4 0 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0. 7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 9 L a n d A s s e t s - J o i n t 10 D i r e c t A s s i g n m e n t 11 T o t a l L a n d A s s e t s 12 T O T A L L A N D & S U P P O R T A S S E T S 13 D i s t r i b u t i o n o f l i n e 1 2 Pr o p r i e t a r y I n f o r m a t i o n Ln 4 a ~ 1 Dir e c t Ln 6 a ~ 1 Ln 4 . . 6 Ln 7 1 7 a Ln 9 a ~ 1 Ln 1 0 a ~ 1 Ln 9 . . 1 0 Ln 7 + 1 1 Ln 1 2 / 1 2 a 1, 4 1 9 , 2 3 5 10 0 . 0 0 0 0 % 23 5 , 6 5 4 16 . 6 0 4 3 % 10 , 1 8 7 0. 7 1 7 8 % 16 , 8 1 8 1.1 8 5 0 % 34 1 , 0 4 0 24 . 0 2 9 8 % Mo s s A d a m s , L L P 21 2 5 1 2 0 0 8 A- 4 Eq u a l Tra n s o o r t Ca r r i e r C o m m o n l i n e B& C Ac c s s I T r a n s m i s s i o n Ta n d e m S w Pa y BF P Re c o r d h) (i) ri (k l (I (m ) I 33 . 1 8 4 3 % 24 . 2 7 8 8 % 27 . 5 8 3 6 % 25 . 4 4 6 9 % 3.0 7 6 1 % 47 0 , 9 6 3 34 4 , 5 7 3 47 0 , 9 6 3 34 4 , 5 7 3 33 . 1 8 4 3 % 24 . 2 7 8 8 % 47 0 , 9 6 3 33 . 1 8 4 3 % 34 4 , 5 7 3 24 . 2 7 8 8 % In t e r - ex c h a n g e (0 ) 50 f 2 6 Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 C O E - C a t . 1 M a n u a l S w i t c h b o a r d P c t 2 C O E - C a t . 1 T S P S C o m p l e x CO E A P P O R T I O N M E N T 3 2 2 2 0 O p e r a t o r S y s t e m s 4 C a t 1 - 0 p e r a t o r S y s t e m s 5 M a n u a l S w i t c h i b o a r d s 6 A u x i l i a r y S w i t c h b o a r d s 7 I n t e r c e p t 8 D i r e c t o r y A s s i s t a n c e 9 S v c O b s B o a r d s 10 T S P S 11 O p e r a t o r 12 R T A 13 O t h e r 14 D i r e c t A s s i g n m e n t 15 T o t a l C a t 1 16 D i s t r i b u t i o n o f L i n e 1 5 17 2 2 1 0 C e n t r a l O f f c e S w i t c h i n g 18 C a t 2 - T a n d e m S w i t c h i n g 19 T a n d e m S w i t c h i n g 20 D i r e c t A s s i g n - M S G 21 - P L 22 T o t a l C a t 2 23 C a t 3 - L o c a l S w i t c h i n g - T S 24 C a t 3 - L o c a l S w i t c h i n g - N T S . 2 5 D i r e c t A s s i g n - M S G 26 - P L 27 T o t a l C a t 3 28 T O T A L C O E - S W I T C H I N G 29 D i s t r i b u t i o n o f L i n e 2 8 30 C O E C a t 1 , 2 & 3 x 1 S 0 B ( x I . . d , h , k ) 31 D i s t r i b u t i o n o f L i n e 3 0 Pr o p r i e t a r y I n f o r m a t i o n A-1 6 , L n 3 A-1 6 , L n 5 Ln 5 a * 1 Dir e c t Dir e c t Ln 9 a * 3 1 Ln 1 1 a * 2 Ln 1 2 a * 3 1 Ln 1 3 a * 3 1 Ln 1 4 a * 3 1 Ln 7 . 1 4 Ln 1 5 / 1 5 a Di r e c Dir e c t Dir e c t Ln 1 9 . . 2 1 Dir e c t Dir e c t Dir e c t Dir e c t Ln 2 3 . . 2 6 Ln 2 2 + 2 7 Ln 2 8 1 2 8 a Ln 7 . . 8 + 2 8 Ln 3 0 / 3 0 a 2/ 2 5 1 2 0 0 8 CE N T R A L O F F I C E E Q U I P M E N T A-5 Pa g e 1 o f 3 SO U R C E Mo s s A d a m s , L L P 60 f 2 6 Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 LIN E DE S C R I P T I O N AP P O R T I O N M E N T F A C T O R S SO U R C E ca E A P P O R T I O N M E N T 32 2 2 3 0 C e n t r a l O f f c e - T r a n s m i s s i o n 33 C a t 4 . 1 - E x c h a n g e C i r c i t 34 4 . 1 1 W i d e b a n d L i n e 35 D i r e c A s s i g n - M S G 36 - P L 37 4 . 1 2 E x T r k x f - B a s i c 38 D i r e c t A s s i g n - M S G 39 . P L 40 E x T r k W B 41 D i r e c t A s s i g n - M S G 42 - P L 43 4 . 1 3 E x L i n e x f B 44 J o i n t M S G 45 P L & L o c a l 46 D i r e c t A s s i g n - M S G 47 - P L 48 C a t 4 . 2 - l n t e r e x c h a n g e 49 4 . 2 1 F u m t o O t h e r s - M S G 50 - P L 51 4 . 2 2 W i d e b a n d 52 J t M S G - A c c s s 53 - N o n a c c s s 54 P L T W - A c c s s 55 - N o n a c c s s 56 D i r e c t A s s i g n - M S G 57 - P L Pro p r i e t a r y I n f o r m a t i o n 2/2 5 / 2 0 0 8 CE N T R A L O F F I C E E Q U I P M E N T A- 5 Pa g e 2 o f 3 IN T E R S T A T E~TO T A L lo c a l Sw i t c h i n g e Di r e c t Dir e c t Di r e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t 1,0 8 3 , 0 0 1 Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Mo s s A d a m s , l L P 70 f 2 6 2/ 2 5 1 2 0 0 8 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 CE N T R A L O F F I C E E Q U I P M E N T St u d y Y e a r : 2 0 0 6 S e c ; a l A c c e s s lo c a l Ch a n T e o n CM - T e r m CM - F a c i l Sw i t c h i n g LIN E DE S C R I P T I O N SO U R C E b (e ) (d ) (. AP P O R T I O N M E N T F A C T O R S CO E A P P O R T I O N M E N T 58 4.2 3 A l l O t h e r 59 Jt M S G - A c c e s s Dir e c t 60 PL T W ~ A c c e s s Dir e c t 61 JtM s g T W - 1 T Dir e c t 62 Di r e c t A s s i g n - M S G N o n a c c e s s Dir e c t 63 -P L N o n a c c e s s Dir e c t 64 Ca t 4 . 3 - H o s t l R e m o t e 65 Jo i n t Dir e c t 66 WA T S - M S G Dir e c t 67 -P L Dir e c 68 Dir e c t A s s i g n - M S G Dir e c t 69 -P L Dir e c t 70 To t a l C a t 4 ln 3 4 . . 5 7 + 5 9 . . 6 9 3,4 4 5 , 8 1 8 1,1 3 2 , 8 0 2 12 7 , 3 7 8 1,1 4 3 , 4 7 0 1,0 4 2 , 1 6 8 71 T O T A L C O E - T R A N S M I S S I O N ln 7 0 3,4 4 5 , 8 1 8 1,1 3 2 , 8 0 2 12 7 , 3 7 8 1,1 4 3 , 4 7 0 1,0 4 2 , 1 6 8 72 D i s t r i b u t i o n o f L i n e 7 1 ln 7 1 n 1 a 10 0 . 0 0 0 0 % 32 . 8 7 4 7 % 3.6 9 6 6 % 33 . 1 8 4 3 % 30 . 2 4 4 4 % 73 T O T A L C E N T R A L O F F I C E E Q U I P Ln 1 5 + 2 2 + 2 7 + 7 0 7,7 1 0 , 3 6 2 1,1 3 2 , 8 0 2 12 7 , 3 7 8 4,2 6 4 , 5 4 5 1,1 4 3 , 4 7 0 1,0 4 2 , 1 6 8 74 D i s t r i b u t i o n o f l i n e 7 3 ln 7 3 1 7 3 a 10 0 . 0 0 0 0 % 14 . 6 9 1 9 % 1. 6 5 2 0 % 55 . 3 0 9 3 % 14 . 8 3 0 3 % 13 . 5 1 6 5 % A.5 Pa g e 3 o f 3 ln t e r - ex c h a n g e (0 Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , l L P 80 f 2 6 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 6 LI N E DE S C R I P T I O N AP P O R T I O N M E N T F A C T O R S \P P O R T I O N M E lO T E Q U I P M E N T , 1 2 3 1 0 I n f o O r i g f T e l i i i : 4 U 1 ¡ . 2 C a t 1 - 0 t h e r l O T 3 P u b l i c T e l e p h o n e D i r e c t 4 A l l O t h e r r O T . M S G D i r e c t 5 - P L D i r e c t 6 D i r e c t A s s i g n - M S G D i r e c t 7 - P L D i r e c t 8 T o t a l C a t 1 - O t h e r r O T l n 3 . . 7 9 D i s t r i b u t i o n o f l i n e 8 l n 8 / 8 a 10 C a t 2 C P E - M S G 11 - P L 12 T o t a l C a t 2 - C P E 13 D i s t r i b u t i o n o f l i n e 1 2 Di r e c t Di r e c t ln 1 0 . . 1 1 ln 1 2 1 1 2 a 14 T O T A L lO T E Q U I P M E N T 15 D i s t r i b u t i o n o f U n e 1 4 ln 8 + 1 2 ln 1 4 / 1 4 a Pr o p r i e t a r y I n f o m i a t i o n 2/2 5 1 2 0 0 8 IN F O R M A T I O N O R I G I N A T I O N I T E R M I N A T I O N E Q U I P M E N T A- 6 SO U R C E eM - F a d l d Mo s s A d a m s , L L P 90 f 2 6 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 C a t 1 . 3 E q u i v I n t e r L o o p s P e t Re c o r d s 21 2 5 1 2 0 0 8 CA B L E A N D W I R E F A C I L I T I E S A- 7 Pa g e 1 o f 2 SO U R C E C& W F C A T 1 - 2 A P P O R T I O N M E N T 2 2 4 1 0 C a b l e & W i r e F a c i l i t i e s 3 C a t 1 - E x c h L i n e x N B 4 1 . 1 In t r a P L & W A T S 5 1 . 2 In t e r P L & W A T S 6 1 . 3 J o i n t l y U s e d 7 D i r e c t A s s i g n - M S G 8 - P L 9 T o t a l C a t e g o r y 1 10 C a t 2 - W B & E x c h T r u n k 11 E x T r k x f B . j o i n t m e s s a g e 12 E x Lin e W B - P L 13 W B L i n e - M S G -P L 14 w e T r u n k . M S G 15 W B Tr k Dir e c t As s i g n - M S G 16 - P L 17 T o t a l C a t e g o r y 2 Pr o p r i e t a r y I n f o r m a t i o n Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Ln 4 . . 8 Dir e c t Dir e c t Dir e c t Di r e c Dir e c t Dir e c t Dir e c t Ln 1 1 . . 1 6 Mo s s A d a m s , L L P 10 0 f 2 6 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 6 LIN E DE S C R I P T I O N AP P O R T I O N M E N T F A C T O R S PP O R T I O N M E t no e C & W F C& W F C A T 3 - 4 A 18 C a t 3 - l n t e r e x c h c _ _ _ , , _ 19 W i d e b a n d : 20 J t M S G - A c c e s s 21 P L l W X - A c c e s s 22 D i r e c t A s s i g n - M S G 23 - P L 24 A l l O t e r : 25 J t M S G - A c c e s s 26 P L l W X - A c c e s s 27 J o i n t T W - I T 28 J o i n t T W - R e m o t e 29 D i r e c t A s s i g n - M S G N o n a c c e s s 30 - P L N o n a c c e s s 31 T o t a l C a t e g o r y 3 32 C a t 4 . H o s t l R e m o t e 33 J o i n t ( x N A T S ) 34 W A T 5 - M S G 35 - P L 36 D i r e c t A s s i g n . M S G 37 - P L 38 T o t a l C a t e g o r y 4 39 T O T A L C A B L E & W I R E F A C I L I T I E S 40 D i s t r i b u t i o n o f U n e 3 9 Pro p r i e t a r y I n f o r m a t i o n SO U R C E Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Ln 2 0 . . 3 0 Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Ln 3 3 . . 3 7 ln 9 + 1 7 + 3 1 + 3 8 Ln 3 9 1 3 9 a 2/ 2 5 1 2 0 0 8 CA B L E A N D W I R E F A C I L I T I E S A- 7 Pa g e 2 0 f 2 Eq u a l Ac c e s s (h ) Lo c a l Sw i t c h i n g e Mo s s A d a m s , l L P 11 0 f 2 6 2/2 5 / 2 0 0 8 Alb i o n T e l e p h o n e C o m p a n y . R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 AM O R T I Z A B L E A S S E T S A- 8 IN T E R S T A T E JU R I S S e c i a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s a r t Ca r r i e r C o m m o n L i n e B& C In t e r . T~ : ~ L Ch a n T e r m CM ( ~ ) e r m CM ¡ : i a c i i Sw i t c h i n g Dir A s s t Su r c h a r g e Ac c e s s Tra n s m i s s i o n Ta n d ~ ~ S w P~ : BF P Re c o r d Pr o c e s s ex c h a n g e LI N E DE S C R I P T I O N SO U R C E (b e en (g ) (h ) (i ) II (m n (0 ) AP P O R T I O N M E N T F A C T O R S 1 L a n d & S u p p o r t A s s e t s D i s t r A- 4 , L n 1 3 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 2 2 2 1 0 C O E - S w i t c h D i s t r A.5 , L n 2 9 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 3 2 2 2 0 C O E - O p e r a t o r D i s t r A- 5 , L n 1 6 4 2 2 3 0 C O E - T r a n s m i s s i o n D i s t r A- 5 , L n 7 2 10 0 . 0 0 0 0 % 32 . 8 7 4 7 % 3.6 9 6 6 % 33 . 1 8 4 3 % 30 . 2 4 4 4 % 5 2 3 1 0 l O T D i s t r A- 6 , L n 1 5 62 4 1 0 C & W F D i s t r A.7 , L n 4 0 10 0 . 0 0 0 0 % 18 . 0 7 3 4 % 2.0 9 5 3 % 47 . 2 8 4 5 % 32 . 5 4 6 8 % 7 G S F , C O E , I O T C & W F E n A c s L S ' A.2 , L n 5 3 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % TA N G I B L E A S S E T S A P P O R T I O N M E N T 8 2 6 8 0 T a n g i b l e A s s e t s . C a p L e a s e s 9 21 1 0 L a n d & S u p t A s s e t s Ln 9 a * 7 10 22 1 0 C O E . S w i t c h i n g Ln 1 0 a * 2 11 22 2 0 C O E - O p e r a t o r Ln 1 1 a * 3 12 22 3 0 C O E . T r a n s m i s s i o n Ln 1 2 a * 4 13 23 1 0 l O T Ln 1 3 a * 5 14 24 1 0 C & W F Ln 1 4 a * 6 15 No t C l a s s i f i e d b y A c c o u n t Ln 1 5 a * 7 16 Di r e c t A s s i g n m e n t . C a p L e a s e s Ln 1 6 a * 7 17 T O T A L C A P I T A L L E A S E S Ln 9 . . 1 6 18 D i s t r i b u t i o n o f L i n e 1 7 Ln 1 7 1 1 7 a TA N G I B L E A S S E T S A P P O R T I O N M E N T 19 2 6 8 0 T a n g i b l e A s s t s - L e a s e I m p r o v e 20 21 1 0 L a n d & S u p t A s s e t s Ln 2 0 a " 7 21 22 1 0 C O E - S w i t c h i n g Ln 2 1 a " 2 22 22 2 0 C O E - O p e r a t o r Ln 2 2 a * 3 23 22 3 0 C O E . T r a n s m i s s i o n Ln 2 3 a * 4 24 23 1 0 l O T Ln 2 4 a * 5 25 24 1 0 C & W F Ln 2 5 a * 6 26 No t C l a s s i f i e d b y A c c o u n t Ln 2 6 a * 7 27 Dir e c t A s s i g n m e n t - L e a s e I m p r o v e m e n t s Ln 2 7 a * 7 28 T O T A L L E A S E H O L D I M P R O V E M E N T S Ln 2 0 . . 2 7 29 D i s t r i b u t i o n o f L i n e 2 8 Ln 2 8 / 2 8 a 30 T O T A L T A N G I B L E A S S E T S Ln 1 7 + 2 8 31 D i s t r i b u t i o n o f L i n e 3 0 Ln 3 0 / 3 0 a IN T A N G I B L E A S S E T S A P P O R T I O N M E N T I 32 2 6 9 0 I n t a n g i b l e A s s e t s Ln 3 2 a * 7 33 Dir e c t A s s i g n m e n t Ln 3 3 a * 7 34 T O T A L I N T A N G I B L E A S S E T S ln 3 2 . . 3 3 35 D i s t r i b u t i o n o f L i n e 3 4 Ln 3 4 / 3 4 a Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 12 0 f 2 6 Al b i o n T e l e p h o n e C o m p a n y . R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 G S F , C O E , I O T , C & W F , G r o s s E q A c s 2 G S F , C O E , I O T , C & W F , E g A c s ( L S ) OT H E R A C C O U N T S A P P O R T I O N M E N T 3 2 0 0 2 P r o p H i d F u t T e l e c o m U s e 4 D i r e c t A s s i g n m e n t 5 T O T A L P R O P H L D F U T T E L E C O M U S E 6 D i s t r i b u t i o n o f U n e 5 7 2 0 0 3 P i t U n d e r C o n s t r 8 D i r e c t A s s i g n m e n t 9 T O T A L P L T U N D E R C O N S T R 10 D i s t r i b u t i o n o f L i n e 9 11 2 0 0 5 T e l e c o m P l a n t A d j u s t 12 D i r e c t A s s i g n m e n t 13 T O T A L T E L E C O M P L A N T A D J U S T 14 D i s t r i b u t i o n o f Lin e 1 3 MIS C A C C O U N T S A P P O R T I O N M E N T 15 1 4 0 2 C l a s s B R T B S t o c k 15 1 4 3 8 D e f e r r e d C h a r g e s 16 1 2 2 0 M a t e r i a l & S u p l x l C P E 17 D i r e c t A s s i g n m e n t 1 8 T O T A L M A T E R I A L S A N D S U P P L I E S 19 C a s h W o r k i n g C a p i t a l EQ U A L A C C E S S I N V E S T A P P O R T I O N M E N T 20 E q u a l A c c e s s G r o s s I n v e s t m e n t 21 E q u a l A c c e s s G r o s s I n v e s t m e n t - D i r e c t A s s i g n m e n t 22 A c c u m D e p r e c i a t i o n 23 D e f e r r e d O p e r I n c T a x e s 24 U n a m o r t i z e d E x p e n s e s 25 T O T A L E Q U A L A C C E S S I N V E S T M E N T 26 D i s t r i b u t i o n o f L i n e 2 6 AL L O W / D I S A L L O W A P P O R T I O N M E N T 27 I n v e s t m e n t A l l o w / D i s a l l o w a n c e s 28 D i r e c t A s s i g n m e n t 29 T O T A L I N V E S T A L L O W / D I S A L L O W A N C E S Pr o p r i e t a r y I n f o r m a t i o n SO U R C E A.2 , L n 5 5 A.2 , L n 5 3 Ln 3 a ~ 1 Ln 4 a ~ 1 Ln 3 . . 4 Ln S / 5 a Ln 7 a ~ 1 Ln 8 a ~ 1 Ln 7 . . 8 Ln 9 1 9 a Ln 1 1 a ~ 2 Ln 1 2 a * 2 Ln 1 1 . . 1 2 Ln 1 3 / 1 3 a Ln 1 5 a * 2 Ln 1 5 a * 2 Ln 1 6 a * 2 Ln 1 7 a * 2 Ln 1 6 . . 1 7 Ln 1 9 a * 2 Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Ln 2 0 . 2 2 . 2 3 + 2 4 Ln 2 5 1 2 5 a Ln 2 7 a * 2 Ln 2 8 a * 2 Ln 2 7 . . 2 8 2/ 2 5 1 2 0 0 8 TE L E C O M M U N I C A T I O N S P L A N T - O T H E R A C C O U N T S IN T E R S T A T E JU R I S S e c i a l A c c s s Lo c a l In f o r m a t i o n TO T A L Ch a n T e r m CM - T e r m CM - ~ a c i l Sw i : : i n g I Dir A s s t Su r c h a r g e (b l (e ) (0 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0. 7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % i 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0. 7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 43 , 7 4 8 7,2 6 4 31 4 51 8 10 , 5 1 3 43 , 7 4 8 7,2 6 4 31 4 51 8 10 , 5 1 3 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0. 7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 20 0 , 5 7 6 33 , 3 0 4 1,4 4 0 2,3 7 7 48 , 1 9 8 20 0 , 5 7 6 33 , 3 0 4 1,4 4 0 2,3 7 7 48 , 1 9 8 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0. 7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % A. 9 Eq u a l Ac c e s s h) Tra n s p o r t Tr a n s m i s s i o n T a n d e m S w (i ) O J B& C In t e r - ex c h a n g e (0 Pr o c e s s n) 33 . 1 8 4 3 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 24 . 2 7 8 8 % 14 , 5 1 7 10 , 6 2 1 14 , 5 1 7 33 . 1 8 4 3 % 10 , 6 2 1 24 . 2 7 8 8 % 66 , 5 6 0 48 , 6 9 7 66 , 5 6 0 33 . 1 8 4 3 % 48 , 6 9 7 24 . 2 7 8 8 % 82 , 6 5 2 82 , 6 5 2 13 , 7 2 4 59 3 97 9 19 , 8 6 1 27 , 4 2 8 20 , 0 6 7 13 , 7 2 4 59 3 97 9 19 , 8 6 1 27 , 4 2 8 20 , 0 6 7 Mo s s A d a m s , L L P 13 o f 2 6 2/ 2 5 1 2 0 0 8 Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 CE R T A I N I N C O M E A C C O U N T S A N D A D J U S T M E N T S A- 1 0 Stu d y Y e a r : 2 0 0 6 i IN T E R S T A T E So e c i a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s p o r t Ca r r i e r C o m m o n L i n e I B& C In t e r - la l (b l eM - T e r m CM ¡ : i a c i l SW i : ~ i n g Djr ( ~ s s t Su r ~ ~ r g e A~ ~ $ S Tra n s m i s s i o n Ta n d e m S w Pa y BF P 1 Re c o r d Pr o c e s s 1 ex c h a n g e LI N E DE S C R I P T I O N SO U R C E (e ) (I l (; k 11 (m l (n l (0 ' AP P O R T I O N M E N T F A C T O R S 1 G S F , C O E , I O T , C & W F , E q A c s ( L S ) A.2 , L n 5 3 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 2 G S F , C O E , I O T , C & W F , E q A c s D i s t r A- 2 , L n 4 9 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 3 C O E , C W & F , I O T x l C C L , L t d P a y , B & C , I X A- 2 , L n 6 8 10 0 . 0 0 0 0 % 21 . 9 2 8 2 % O.9 4 7 g ø / o 1.5 6 4 9 % 31 . 7 3 4 6 % 43 . 8 2 4 3 % 4 2 1 1 0 S u p p o r t A s s e t s D i s t r A- 4 , L n 8 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 5 2 2 1 0 C O E S w i t c h i n g D i s t r A.5 , L n 2 9 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 6 2 2 2 0 C O E O p e r a t o r D i s t r A- 5 , L n 1 6 7 2 2 3 0 C O E T r a n s m i s s i o n D i s t r A.5 , L n 7 2 10 0 . 0 0 0 0 % 32 . 8 7 4 7 % 3.6 9 6 6 % 33 . 1 8 4 3 % 30 . 2 4 4 % 8 2 3 1 0 l O T D i s t r A- 6 , L n 1 5 92 4 1 0 C & W F D i s t r A.7 , L n 4 0 10 0 . 0 0 0 0 % 18 . 0 7 3 4 % 2.0 9 5 3 % 47 . 2 8 4 5 % 32 . 5 4 6 8 % 10 2 0 0 1 T e l P i t i n S v c D i s t r A- 2 , L n 1 5 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 11 N e t T e l e c o m P l a n t D i s t r A.2 , L n 3 4 10 0 . 0 0 0 0 % 18 . 8 6 5 2 % 0.6 5 0 5 % 1.5 1 6 4 % 10 . 0 3 0 8 % 40 . 0 6 0 1 % 28 . 8 7 6 9 % 12 4 1 0 0 N e t C u r D e f O p I n c T a x e s A- 1 5 , L n 4 8 13 B i g T h r e e E x n e n s e s D i s t r A- 3 , L n 6 10 0 . 0 0 0 0 % 15 . 3 6 8 5 % 0.8 1 5 1 % 0.9 0 6 6 % 24 . 1 5 5 3 % 27 . 8 4 2 7 % 25 . 3 9 0 5 % I 2.9 9 2 4 % 2.5 2 8 9 % OT H E R I N C O M E A P P O R T I O N M E N T 14 7 1 0 0 O t h O p e r I n c & E x p e n s e s 15 Alw F d s U s e d O u r C o n s t r Ln 1 5 a * 1 16 Co n t r i b u t i o n s Ln 1 6 a * 1 I 8,8 8 3 1 1,4 7 5 64 10 5 1 2,1 3 5 1 -I -I 2,9 4 8 -I 2,1 5 7 17 Ab a n d o n d e d C o n s t r u c t i o n Ln 1 7 a * 1 18 Dir e c t A s s i g n m e n t Ln 1 8 a * 1 19 T O T A L O T H E R O P E R I N C & E X P E N S E S Ln 1 5 . . 1 8 I 8,8 8 3 i 1,4 7 5 64 10 5 1 2,1 3 5 1 -I -I 2,9 4 8 -I 2,1 5 7 20 F i x e d C h a r g e s 21 In t e r e s t o n C a p i t a l L e a s e s Ln 2 1 a * 1 22 Fix e d C h a r g e s E x c l C a p i t a l L e a s e s Ln 2 2 a * 1 I 14 4 , 7 1 7 I 24 . 0 2 9 1,0 3 9 1.7 1 5 1 34 . 7 7 5 I -I -I 48 . 0 2 3 -I 35 , 1 3 6 23 Am o r t i z a t i o n o f D e b t D i s c o u n t Ln 2 3 a * 1 24 Oth e r I n t e r e s t Ln 2 4 a * 1 25 T O T A L F I X E D C H A R G E S Ln 2 1 . . 2 4 I 14 4 , 7 1 7 1 24 . 0 2 9 1,0 3 9 1.7 1 5 1 34 . 7 7 5 1 -I -I 48 , 0 2 3 -I 35 , 1 3 6 26 5 2 4 0 R e n t R e v e n u e s 27 Su p p o r t A s s e t s Ln 2 7 a " 4 28 CO E . S w i t c h i n g Ln 2 8 a " 5 29 Ca E - O p e r a t o r Ln 2 9 a " 6 30 CO E - T r a n s m i s s i o n Ln 3 0 a * 7 31 lO T Ln 3 1 a " 8 32 C& W F Ln 3 2 a * 9 33 No t C l a s s i f i e d b y A c c o u n t Ln 3 3 a * 1 0 UN B U N D L E D N E T W O R K E L E M E N T S 34 C& W F - U n b u n d l e d L o o p Di r e c t 35 Op e r a t o r S y s t e m s 36 Ta n d e m S w i t c h i n g Dir e c t 37 Lo c a l S w i t c h i n g Dir e c t 38 Tra n s p o r t T e n n i n a t i o n Dir e c t 39 Tra n s p o r t F a c i l i t y Dir e c t 40 SS 7 Ln 4 0 a " 7 41 OS S Ln 1 a * 1 0 42 Di r e c t A s s i g n m e n t Ln 4 2 a " 1 0 43 T O T A L R E N T R E V E N U E S Ln 2 7 . . 2 IN C O M E T A X A D J U S T A P P O R T I O N M E N T I 44 I T C A m o r t i z a t i o n - F e d e r a l Ln 4 4 a " 1 45 I T C A m o r t a t i o n - S t a t e Ln 4 5 a " 1 46 T O T A L I T C A M O R T I Z A T I O N Ln 4 4 . . 5 47 A m o r t i z a t i o n o f E x c e s s D e f T a x e s Ln 4 7 a " 1 0 48 C a p i t a l i z e d P a y r o l l T a x e s Ln 4 8 a * 2 49 Di r e c t A s s i g n m e n t Ln 4 9 a " 2 50 T O T A L C A P I T A L I Z E D P A Y R O L L T A X E S Ln 4 8 . . 4 9 51 D e p r e c i a t i o n A d j u s t m e n t s Ln 5 1 a * 2 52 Di r e c t A s s i g n m e n t Ln 5 2 a * 2 53 T O T A L D E P R E C I A T I O N A D J U S T M E N T S Ln 5 1 . . 5 2 54 U n c o l l e c t i b l e s - J o i n t M e s s a g e Ln 5 4 a * 2 55 U n c o l l e c t i b l e s - E n d U s e r C C L Dir e c t 56 U n c o l l e c t i b l e s - l n t e r e x c h a n g e C a r r i e r Ln 5 6 a * 3 57 T O T A L U N C O L L E C T I B L E S Ln 5 4 . . 5 6 58 M i s c I n c A d j u s t m e n t s 59 In c A d j A l l o c o n 2 0 0 1 Ln S 9 a " 1 0 60 In c A d j A l l o c o n B i g 3 E x p Ln 6 0 a * 1 61 T O T A L M I S C I N C A D J U S T M E N T S Ln S 9 . . 6 0 62 T o t a l O t h e r I n c o m e a n d T a x a d j u s t m e n t s Ln 1 9 + 2 5 + 4 3 + 4 6 + 4 7 + 5 0 25 , 5 0 4 1, 1 0 2 1,8 2 0 50 , 9 7 1 37 , 2 9 2 63 D i s t r i b u t i o n o f L i n e 6 2 Ln 6 2 / 6 2 a 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 14 0 f 2 6 21 2 5 1 2 0 0 8 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 PL A N T S P E C I F I C E X P E N S E S A-1 1 St u d y Y e a r : 2 0 0 6 IN T E R S T A T E JU R I S SD e c i a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s a r t Ca r r i e r C o m m o n L i n e TO T A L Ch a n T e r m eM - T e r m eM - F a c i t Sw i ~ ~ i n g Oi r ( ~ s s t Su r c h a r g e Ac c e s s Tra n s m i s s i o n Ta n d e m S w P~ : ) BF P LIN E DE S C R I P T I O N SO U R C E (a ) Ib ' e d In ) h II ) ) (I ) AP P O R T I O N M E N T F A C T O R S 1 G S F , C O E , I O T , C & W F , E q A c s ( L S ) A- 2 , L n 5 3 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1. 1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 2 2 1 1 0 L a n d & S u p p o r t A s s e t s D i s l r A- 4 , L n 1 3 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1. 1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 32 2 1 0 C O E S w i t c h i n g D i s l r A- 2 , L n 7 2 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 4 2 2 2 0 C O E O p e r a t o r y S y s t e m s D i s t r A- 5 , L n 1 6 5 2 2 3 0 C O E T r a n s m i s s i o n D i s t r A- S , L o n 10 0 . 0 0 0 0 % 32 . 8 7 4 7 % 3.6 9 6 6 % 33 . 1 8 4 3 % 30 . 2 4 4 % 66 4 1 0 C & W F D i s t r A~ 7 ; L n 4 0 10 0 . 0 0 0 0 % 18 . 0 7 3 4 % 2.0 9 5 3 % 47 . 2 8 4 5 % 32 . 5 4 6 8 % PL A N T S P E C I F I C E X P A P P O R T I O N M E N T 7 6 1 1 0 N e t w o r k S u p p o r t E x p e n s e s Ln 7 a * 1 24 , 5 5 6 4, 0 7 7 17 6 29 1 5,9 0 1 8,1 4 9 5,9 6 2 8 Di r e c t A s s i g n m e n t Ln 8 a * 1 9 T O T A L N E T W O R K S U P P O R T E X P E N S E S Ln 7 . . 8 24 , 5 5 6 4, 0 7 7 17 6 29 1 5,9 0 1 8, 1 4 9 5,9 6 2 10 6 1 2 0 G e n e r a l S u p p o r t E x e n s e s Ln 1 0 a * 2 53 , 4 3 0 8,8 7 2 38 3 63 3 12 , 8 3 9 17 , 7 3 0 12 , 9 7 2 11 Dir e c t A s s i g n m e n t Ln 1 1 a * 2 12 T O T A L G E N E R A L S U P P O R T E X P E N S E S Ln 1 0 . . 1 1 53 , 4 3 0 8,8 7 2 38 3 63 3 12 , 8 3 9 17 , 7 3 0 12 , 9 7 2 13 6 2 1 0 C O E S w i t c h i n g E x p e n s e s Ln 1 3 a * 3 29 5 , 3 0 7 29 5 , 3 0 7 ,. Dir e c t A s s i g n m e n t Ln 1 4 a * 3 15 T O T A L C O E S W I T C H I N G E X P E N S E S Ln 1 3 . . 1 4 29 5 , 3 0 7 29 5 , 3 0 7 16 6 2 2 0 C O E O p e r a t o r S y s t e m s E x p e n s e s Ln 1 6 a * 4 17 Dir e c t A s s i g n m e n t Ln 1 7 a * 4 18 T O T A L C O E O P E R A T O R S V S E X P E N S E S Ln 1 6 . . 1 7 19 6 2 3 0 C O E T r a n s m i s s i o n E x p e n s e s Ln 1 9 a * 5 27 4 , 9 1 2 90 , 3 7 6 10 , 1 6 2 91 , 2 2 7 83 , 1 4 5 20 Dir e c t A s s i g n m e n t Ln 2 0 a * 5 21 T O T A L C O E T R A N S M I S S I O N E X P E N S E S Ln 1 9 . , 2 0 27 4 , 9 1 2 90 , 3 7 6 10 , 1 6 2 91 , 2 2 7 83 , 1 4 5 22 T O T A L C O E E X P E N S E S Ln 1 5 + 1 8 + 2 1 57 0 , 2 1 8 90 , 3 7 6 10 , 1 6 2 29 5 , 3 0 7 91 , 2 2 7 83 , 1 4 5 23 6 3 1 0 l O T E q u i p E x p e n s e s 2. Ca t 1 - 0 t h e r l O T E q E x p e n s e s Dir e c t 25 Ca t 2 - C u s t P r e m E q u i p E x p Dir e c t 26 Dir e c t A s s i g n m e n t Dir e c t 27 T O T A L l O T E X P E N S E S Ln 2 4 . . 2 6 28 6 4 1 0 C & W F E x p e n s e s Ln 2 8 a * 6 50 4 , 8 6 8 91 , 2 4 7 10 , 5 7 9 23 8 , 7 2 4 16 4 , 3 1 8 29 Dir e c t A s s i g n m e n t Ln 2 9 a * 6 30 T O T A L C & W F E X P E N S E S Ln 2 8 . . 2 9 50 4 , 8 6 8 91 , 2 4 7 10 , 5 7 9 23 8 , 7 2 4 16 4 , 3 1 8 31 P i t S p e c E x p x J 1 1 0 , 6 1 2 0 Ln 2 2 + 2 7 + 3 0 1,0 7 5 , 0 8 6 18 1 , 6 2 3 10 , 1 6 2 10 , 5 7 9 29 5 , 3 0 7 32 9 , 9 5 1 24 7 , 4 6 4 32 T O T A L P L A N T S P E C O P E R E X P Ln 9 + 1 2 + 3 1 1,1 5 3 , 0 7 2 19 4 , 5 7 2 10 , 7 2 2 11 , 5 0 3 31 4 , 0 4 7 35 5 , 8 3 0 26 6 , 3 9 8 33 D i s t r i b u t i o n o f L i n e 3 2 Ln 3 2 / 3 2 a 10 0 . 0 0 0 0 % 16 . 8 7 4 3 % 0. 9 2 9 9 % 0.9 9 7 6 % 27 . 2 3 5 6 % 30 . 8 5 9 3 % 23 . 1 0 3 3 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 15 0 f 2 6 2/2 5 / 2 0 0 8 Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 PL A N T N O N S P E C I F I C E X P E N S E S A- 1 2 Stu d y . Y e a r : 2 0 0 6 I If r I E R S T A . T E == I I Lo c a l In f o r m a t i o n Eq u a l I Tr a n s p o r t Ca r r i e r C o m m o n L i n e I B& C Sw i t c h i n g LI N E DE S C R I P T I O N SO U R C E 0) d (e ) AP P O R T I O N M E N T F A C T O R S 1 C O E , l O T , C & W F D i s t r A- 2 , L n 8 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1. 1 8 5 0 % 24 . 0 2 9 8 % I :1 :1 33 . 1 8 4 3 % :1 24 . 2 7 8 8 % 2 2 1 1 0 S u p t A s t s D i s t r A- 4 , L n 8 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 3 2 2 1 0 C O E - S w i t c h i n g O i s t r A- 2 , L n 7 2 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 4 2 2 2 0 C O E - O p e r a t o r D i s t r A- 5 , L n 1 6 5 2 2 3 0 C O E - T r a n s m i s s i o n O j s t r A- 5 , L n 7 2 10 0 . 0 0 0 0 % 32 . 8 7 4 7 % 3.6 9 6 6 % 24 0 2 9 8 ' J . 1 :1 :1 33 . 1 8 4 3 % ~ I 30 . 2 4 4 4 % 6 2 3 1 0 l O T D i s t r A- 6 , L n 1 5 72 4 1 0 C & W F D i s t r A- 7 , L n 4 0 10 0 . 0 0 0 0 % 18 . 0 7 3 4 % 2.0 9 5 3 % 47 . 2 8 4 5 % 32 . 5 4 6 8 % 8 2 0 0 1 T e l P i t i n S v c D i s t r A- 2 , L n 1 5 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 9 2 0 0 2 P r o p H i d F t T e l U s e O i s t r A. 9 , L n 6 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 10 2 6 8 0 C a p i t a l L e a s e s D i s t r A- 8 , L n 1 8 11 2 6 8 0 L e a s e h o l d I m p r o v e O i s t r A- B , L n 2 9 12 2 6 9 0 I n t a n g i b l e A s s e t s D i s t r A- B , L n 3 5 13 2 0 0 5 T e l e c o m P i t A d . u s t m e n t A- 9 , L n 1 4 PL A N T N O N S P E C E X P A P P O R T I O N 14 6 5 1 0 O t h P r o p P l a n t & E q E x p Ln 1 4 a * 1 15 Dir e c t A s s i g n m e n t Ln 1 5 a * 1 16 T O T A L O T H P R O P P L A N T & E Q E X P Ln 1 4 . . 1 5 17 6 5 3 0 N e t w o r k O p e r a t i o n s E x p Ln 1 7 a * 1 1 10 5 , 2 ~ i 17 , 5 3 9 75 8 1,2 5 ~ I 25 , 3 8 ~ I :1 :1 35 , 0 5 2 :1 25 , 6 4 5 18 Dir e c t A s s i g n m e n t Ln 1 8 a * 1 19 T O T A L N E T W O R K O P E R A T I O N S E X P Ln 1 7 . . 1 8 10 5 , 6 2 7 17 , 5 3 9 75 8 1,2 5 2 25 , 3 8 2 35 , 0 5 2 25 , 6 4 5 20 6 5 4 0 A c c e s s E x p e n s e s 21 Ac c s s E x p e n s e x l F e d e r a l S u p p o r t Dir e c t 22 Fe d e r a l S u p p o r t Dir e c t 23 T O T A L A C C E S S E X P E N S E S Ln 2 1 . 2 2 24 T O T A L A C C O U N T S 6 5 1 0 , 6 5 3 0 , 6 5 4 0 Ln 1 6 + 1 9 + 2 3 14 1 , 7 4 2 17 , 5 3 9 75 8 1,2 5 2 25 , 3 8 2 1 :1 :1 35 , 0 5 2 :1 61 , 7 6 0 25 6 5 6 0 D e p r a n d A m o r t E x p e n s e s 26 De p r - S u p p o r t A s s e t s Ln 2 6 a * 2 45 . 0 0 9 7, 4 7 3 32 3 53 3 10 , 8 1 6 14 , 9 3 6 10 , 9 2 8 27 Oe p r - C O E - S w i t c h i n g Ln 2 7 a * 3 54 8 , 9 6 8 54 8 , 9 6 8 28 De p r . C O E - O p e r a t o r Ln 2 8 a * 4 29 De p r - C O E - T r a n s m i s s i o n Ln 2 9 a * 5 31 6 , 5 8 6 10 4 , 0 7 7 11 , 7 0 3 :1 :1 :1 10 5 , 0 5 7 :1 95 , 7 5 0 30 De p r . l n f o O r i g f T e r m E q u i p Ln 3 0 a * 6 31 De p r - C a b l e & V V r e F a c i l Ln 3 1 a * 7 47 2 , 2 7 3 85 , 3 5 6 9,8 9 6 22 3 . 3 1 2 15 3 , 7 1 0 32 De p r - P r o p H i d F t T e l U s e Ln 3 2 a * 9 33 Am o r t - C a p i t a l L e a s e s Ln 3 3 a * 1 0 34 Am o r t - L e a s e h o l d I m p r o v e m e n t s Ln 3 4 a * 1 1 35 Am o r t - I n t a n g i b l e A s s e t s Ln 3 5 a * 1 2 36 Am o r t . O t h e r Ln 3 6 a * 1 3 37 T O T A L O E P R & A M O R T E X P E N S E S Ln 2 6 . . 3 6 I ', 3 8 2 , 8 3 6 \ 19 6 , 9 0 6 12 , 0 2 6 10 ' 4 2 9 1 55 9 ' 7 8 4 1 ;1 ;\ 34 3 , 3 0 4 ;1 26 0 , 3 8 7 38 T O T A L P L A N T N O N S P E C O P E R E X P Ln 1 6 + 1 9 + 2 3 + 3 7 1,5 2 4 , 5 7 8 21 4 , 4 4 5 12 , 7 8 4 11 , 6 8 1 58 5 , 1 6 6 37 8 , 3 5 6 32 2 , 1 4 7 39 D i s t r i b u t i o n o f L i n e 3 9 Ln 3 8 1 3 8 a 10 0 . 0 0 0 0 % 14 . 0 6 5 8 % 0.8 3 8 5 % 0.7 6 6 2 % 38 . 3 8 2 1 % 24 . 8 1 7 1 % 21 . 1 3 0 2 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 16 o f 2 6 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 G S F , C O E , I O T , C & W F , E q A c s ( L S ) 2 W S W S - T e l O p e r S v c s P c t 3 O p e r a t o r S e r v c e s U n d e r C o n t r a c t P c t . 4 G S F , C O E , I O T , C & W F , E q A c s ( L S C C L + ) 5 E U S e i v i c e O r d e r C o n t a c t s 6 E U P a y m e n t & C o l l e c t i o n 7 E U B i l l n g I n q u i r y C o n t a c t s 8 I X C a r r e r S v c O r d e r C o n t a c t s 9 i x C a r r e r P a y m e n t & C o l l e c t i o n 10 I X C a r r i e r B i l i n g I n q u i r y C o n t a c t 11 CU S T O M E R O P E R A T I O N S E X P E N S E S SO U R C E IN T E R S T A T E~TO T A L a A. 2 , L n 5 5 A- 1 6 , L n 7 A. 1 6 , L n 1 4 A- 2 , L n 6 2 A. 1 6 , L n 1 9 A. 1 6 , L n 2 4 A. 1 6 , L n 2 9 A- 1 6 , L n 3 3 A. 1 6 , L n 3 7 A- 1 6 , L n 4 1 A. 1 6 , L n 4 5 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % Ln 1 2 a * 1 Dir e c t Ln 1 2 . . 1 3 PE N S E S A P P O R T I O N M E N T cp e n s e s 13 D i r e c A s s i g n m e n t 14 T O T A L M A R K E T I N G E X P E N S E S SE R V I C E S E X P E N S E S A P P O R T i o N M E N T 15 6 6 2 0 S e r v c e s E x p e n s e s 16 T e l e p h o n e O p e r a t o r S e r v c e : 17 T e l O p e r a t o r S v c 18 O p e r a t o r s e r v c e s u n d e r c o n t r a c t 19 T o t a l T e l O p e r S v c E x p 20 P u b l i s h e d D i r e c t L i s t i n g s 21 A l l O t h e r : 22 C a t . 1 . L B O E E U S v c O r d P r o c 23 P r e s u b s c r i p t i o n 24 O t e r 25 C a t 1 - L B O E E U P & C 26 . C l i 27 - O t h e r 28 C a t 1 - L B O E E U B I 29 - C I I 30 - O t h e r 31 C a t 1 - L B O E i x c S O P 32 C a t 1 - L B O E i x c P & C 33 C a t 1 - L B O E I X C B l 34 C a t 1 - L B O E C o i n C o l . L m t d 35 T o t a l C a t 1 - L B O E Pr o p r i e t a r y I n f o r m a t i o n Ln 1 7 a * 2 Ln 1 8 a * 3 Ln 1 7 . . 1 8 Dir e c t ~1 ¡ ; ¡ & l ¡ Ln 2 3 a * 4 Ln 2 4 a * 5 44 , 9 2 4 4, 0 8 4 Dir e c t Ln 2 5 a * 6 Dir e c t Ln 2 8 a * 7 Ln 3 1 a * 8 Ln 3 2 a * g Ln 3 3 a * 1 0 Ln 3 4 a * 1 1 Ln 2 3 . . 3 4 Mo s s A d a m s , L L P 2/ 2 5 1 2 0 0 8 A- 1 3 Pa g e 1 o f 2 17 o f 26 Al b i o n T e l e p h o n e C o m p a n y . R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 36 C O E , C W & F , I O T x l C C L , l t d P a y , B & C , I X SO U R C E A.2 , L n 6 8 2/2 5 / 2 0 0 8 CU S T O M E R O P E R A T I O N S E X P E N S E S A.1 3 Pa g e 2 0 f 2 IN T E R S T A T E~TO T A L I C h a n T e r m (b ) 10 0 . 0 0 0 0 % I 2 1 . 9 2 8 2 % SE R V I C E S E X P E N S E S A P P O R T I O N M E N T 37 C a t 2 . C S E M s g P r o c 38 J o i n t M e s s a g e 39 D i r e c t A s s i g n m e n t 40 C a t 2 . C S E O t h e r B & C 41 D i r e c t A s s i g n m e n t 42 E n d U s e r C o m m o n U n e 43 C a t 2 . C S E C A B S 44 T o t a l C a t 2 . C S E 45 Ca t 2 S p e c A c s D i s t r 46 To t a l 6 6 2 0 x l C a t 3 47 Di s t r i b u t i o n o f U n e 4 1 48 Ca t 3 - A J I O t h e r C S E 49 Ca t 3 - D i r e c t A s s i g n m e n t 50 To t a l A l l O t h e r C a t 3 51 To t a l A l l O t e r . C a t 1 , 2 , 3 52 T O T A L S E R V I C E S E X P E N S E S 53 T O T A L 66 1 0 & 6 6 2 0 x l a m o u n t s 54 a l l o c a t e d o n G S F 55 T O T A L C U S T O M E R O P E R E X P E N S E S 56 D i s t r i b u t i o n o f l i n e 5 4 Pr o p r i e t a r y I n f o r m a t i o n Di r e c t Di r e c t Di r e c t Di r e c t Ln 4 3 a " 3 6 ln 3 7 . . 4 3 ln 4 4 / 4 4 a : . . . d Ln 1 9 + 2 0 + 3 5 + 4 4 ln 4 6 1 4 6 a Ln 4 8 a * 4 7 ln 4 9 a " 4 7 Ln 4 8 . A 9 Ln 3 5 + 4 4 + 5 0 Ln 1 9 + 2 0 + 5 1 ln 1 2 + 1 8 + 1 9 + 2 2 . . 2 5 +2 9 + 3 9 + 4 4 Ln 1 4 + 5 2 Ln 5 5 / 5 5 a 60 7 10 0 . 0 0 0 0 % 89 . 7 1 8 8 % 11 3 , 0 4 4 4,6 9 1 26 43 1,5 3 1 2, 1 1 4 29 , 2 8 4 40 , 8 4 0 34 , 5 1 5 10 0 . 0 0 0 0 % 4. 1 5 0 1 % 0.0 2 3 2 % 0.0 3 8 3 % 1.3 5 4 0 % 1.8 6 9 8 % 25 . 9 0 4 8 % 36 . 1 2 7 8 % 30 . 5 3 2 0 % 3,8 9 0 16 1 1 1 53 73 1,0 0 8 1,4 0 5 1,1 8 8 3, 8 9 0 16 1 1 1 53 73 1,0 0 8 1,4 0 5 1,1 8 8 11 6 , 9 3 4 4,8 5 3 27 45 1,5 8 3 2, 1 8 6 30 , 2 9 1 42 , 2 4 6 35 , 7 0 2 11 6 , 9 3 4 4,8 5 3 27 45 1,5 8 3 2, 1 8 6 30 , 2 9 1 42 , 2 4 6 35 , 7 0 2 11 0 , 8 3 4 4,6 9 1 26 43 87 9 1,2 1 4 28 , 6 2 6 40 , 8 4 0 34 , 5 1 5 11 6 , 9 3 4 4,8 5 3 27 45 1,5 8 3 2, 1 8 6 30 , 2 9 1 42 , 2 4 6 35 , 7 0 2 10 0 . 0 0 0 0 % 4.1 5 0 1 % 0.0 2 3 2 % 0.0 3 8 3 % 1.3 5 4 0 % 1.8 6 9 8 % 25 . 9 0 4 8 % 36 . 1 2 7 8 % 30 . 5 3 2 0 % Mo s s A d a m s , L L P 18 0 f 2 6 Al b i o n T e l e p h o n e C o m p a n y ~ R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 B i g T h r e e E x p e n s e s D i s t r 2 G S F . C O E . I O T . C & W F . E q A c s ( L S ) 3 C u s t o m e r O p e r a t i o n s D i s t r CO R P O P E R A T I O N S E X P A P P O R T I O N M E N T 4 6 7 1 0 E x e c & P l a n n i n g E x p e n s e s 5 A l l O t h e r 6 D i r e c t A s s i g n m e n t 7 T O T A L E X E C & P L A N N I N G E X P E N S E S 8 6 7 2 0 G e n ' l a n d A d m i n E x p e n s e s 9 A l l O t h e r 10 D i r e c t A s s i g n m e n t 11 T O T A L G E N ' l & A D M I N E X P E N S E S 12 T O T A L C O R P O R A T E O P E R E X P E N S E S 13 D i s t r i b u t i o n o f l i n e 1 2 A-3 , l n 6 A-2 , l n 5 3 A-1 3 , l n 5 6 ln 5 a * 1 ln 6 a * 1 ln 5 . . 6 ln 9 a * 1 ln 1 0 a " 1 ln 9 . . 1 0 ln 7 + 1 1 ln 1 2 1 1 2 a SO U R C E 21 2 5 1 2 0 0 8 CO R P O P E R A T I O N S , T A X E S , & E Q U A L A C C E S S E X P E N S E S A~ 1 4 ì Sp e c i a l A c c e s s lo c a l In f o r m a t i o n Eq u a l Tr a n s p o r t Ca r r i e r C o m m o n l i n e B& C In t e r . CM - T e r m CM - F a c i l Sw i t c h i n g Di r A s s t su r ~ : : r g e Ac c e s s Tra n s m i s s i o n Ta n d e m S w Pa y BF P Re c o r d Pr o c e s s I ex c h a n g e c) d (e ' m h ti ti k I m (n ) (0 10 0 . 0 0 0 0 % 15 . 3 6 8 5 % 0.8 1 5 1 % , 0. 9 0 6 6 % 24 . 1 5 5 3 % 27 . 8 4 2 7 % 25 . 3 9 0 5 % 2. 9 9 2 4 % 2.5 2 8 9 % 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 10 0 . 0 0 0 0 % 4.1 5 0 1 % 0.0 2 3 2 % 0. 0 3 8 3 % 1. 3 5 4 0 % 1. 8 6 9 8 % 25 . 9 0 4 8 % 36 . 1 2 7 8 % 30 . 5 3 2 0 % 27 8 , 6 2 1 42 , 8 2 0 2,2 7 1 2,5 2 6 67 , 3 0 2 77 , 5 7 5 70 , 7 4 3 8,3 3 8 7, 0 4 6 27 8 , 6 2 1 42 , 8 2 0 2,2 7 1 2,5 2 6 67 , 3 0 2 77 . 5 7 5 70 , 7 4 3 8.3 3 8 7. 0 4 6 38 3 , 7 4 5 58 , 9 7 6 3,1 2 8 3,4 7 9 92 . 6 9 5 10 6 , 8 4 5 97 , 4 3 5 11 , 4 8 3 9,7 0 5 43 , 6 0 5 6,7 0 1 35 5 39 5 10 , 5 3 3 12 , 1 4 1 11 , 0 7 2 1, 3 0 5 1,1 0 3 42 7 , 3 5 0 65 , 6 7 7 3,4 8 3 3,8 7 4 10 3 . 2 2 8 11 8 . 9 8 6 10 8 . 5 0 6 12 , 7 8 8 10 , 8 0 7 70 5 , 9 7 0 10 8 , 4 9 7 5,7 5 5 6,4 0 1 17 0 . 5 2 9 19 6 . 5 6 1 17 9 , 2 4 9 21 . 1 2 6 17 . 8 5 4 10 0 . 0 0 0 0 % 15 . 3 6 8 5 % 0.8 1 5 1 % 0. 9 0 6 6 % 24 . 1 5 5 3 % 27 . 8 4 2 7 % 25 . 3 9 0 5 % 2.9 9 2 4 % 2. 5 2 8 9 % 32 6 . 3 7 5 54 . 1 9 2 2.3 4 3 3,8 6 8 78 , 4 2 7 10 8 , 3 0 5 79 , 2 4 0 32 6 . 3 7 5 54 , 1 9 2 2.3 4 3 3,8 6 8 78 , 4 2 7 10 8 , 3 0 5 79 , 2 4 0 72 , 9 7 5 12 , 1 1 7 52 4 86 5 17 , 5 3 6 24 , 2 1 6 17 , 7 1 8 1,0 8 1 17 9 8 13 26 0 35 9 26 2 74 , 0 5 6 12 . 2 9 7 53 2 87 8 17 , 7 9 6 24 , 5 7 5 17 , 9 8 0 OP E R A T I N G T A X E S A P P O R T I O N M E N T 14 7 2 0 0 O p e r a t i n g T a x e s 15 F e d e r a l In c o m e T a x e s 16 S t a t e & l o c a l In c o m e T a x e s 17 O P F E D , S T A T E , l O C A L T A X E S 18 F I T A l l o w a n c e s / D i s a l l o w a n c e s 19 O p e r a i n g T a x e s - P r o p e r t 20 O p e r a i n g T a x e s - O t h e r 21 O p e r a t i n g T a x e s - D i r e c t A s s i g n m e n t 22 T O T A L O P E R T A X E S x l F I T , S I T OP E R A T I N G R E V E N U E S E P A R A T I O N S 23 5 0 0 0 B a s i c l o c a l R e v e n u e 24 5 0 8 0 I n t e r s t t e A c c s s / E n d U s e r R e v e n u e 25 5 0 8 4 S t a t e A c c e s s / E n d U s e r R e v e n u e 26 5 1 0 0 l o n g D i s t a n c e M e s s a g e R e v e n u e 27 5 2 0 0 M i s c e l l a n e o u s O p e r a t i n g R e v e n u e 28 7 1 0 0 O t h e r O p e r a t i n g I n c o m e 29 T O T A l ln 1 5 a * 2 ln 1 6 a * 2 ln 1 8 a * 2 ln 1 9 a * 2 ln 2 0 a * 2 ln 2 1 a * 2 ln 1 9 . . 2 1 Dir e c t ln 2 4 a * 2 Dir e c t Dir e c t ln 2 7 a * 3 ln 2 8 a * 3 NM E N T OR T I O N 31 E 32 I n t e r e s t o n C u s t o m e r D e p o s i t s 33 O t h e r I n t e r e s t 34 D i r e c t A s s i g n m e n t 35 T O T A L E X P A l l O W l D l S A l l O W A N C E S No t e 1: Al l o c a t e d o n t h e A . 1 Pro p r i e t a r y I n f o r m a t i o n Dir e c t ln 3 2 a * 2 ln 3 3 a * 2 ln 3 4 a * 2 ln 3 2 . . 3 4 11 0 26 37 27 18 11 0 18 27 26 37 Mo s s A d a m s , L L P 19 0 f 2 6 2/2 5 / 2 0 0 8 Alb i o n T e l e p h o n e C o m p a n y . R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 RE S E R V E S A N D D E F E R R A L S A-1 5 Pa g e 1 o f 2 IN T E R S T A T E JU R I S So e c i a l A c c s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s o r t Ca r r i e r C o m m o n U n e B& C In t e r - TO T A L Ch a n T e r m CM - T e r m CM - F a c i t SW i : ~ ~ i n g Dir ( ~ s s t su r ~ ~ ~ r g e Ac c s s Tr a n s m i s s i o n Ta n d ~ ~ S w Pa y BF P R~ : i r d pr ~ ~ s s ex ~ o ~ n g e Ll N E DE S C R I P T I O N SO U R C E la ' b c (d ' h (I (k ) (I) AP P O R T I O N M E N T F A C T O R S 1 2 1 1 0 S u p p o r t A s s e t s D i s t r A-4 , L n 8 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 2 2 2 1 0 C O E S w i t c h i n g D i s t r A-2 , L n 7 2 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 3 2 2 2 0 C O E O p e r a t o r D i s t r A.5 , L n 1 6 4 2 2 3 0 C O E T r a n s m i s s i o n D i s t r A-5 , L n 7 2 10 0 . 0 0 0 0 % 32 . 8 7 4 7 % 3.6 9 6 6 % 33 . 1 8 4 3 % 30 . 2 4 4 4 % 5 2 3 1 0 l O T D i s t r A.ß , L n 1 5 62 4 1 0 C & W F D i s t r A.7 , L n 4 0 10 0 . 0 0 0 0 % 18 . 0 7 3 4 % 2. 0 9 5 3 % 47 . 2 8 4 5 % 32 . 5 4 6 8 % 7 G S F , C O E , l O T , C & W F , E q A c s ( L S ) A-2 , L n 5 3 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 8 2 6 8 0 C a p i t l L e a s e s D i s t r A-8 , L n 1 8 9 2 6 8 0 L e a s e h o l d I m p r o v e D i s t r A-8 , L n 2 9 10 2 0 0 5 T e l e c o m P L t A d ' u s t m e n t A-9 , L n 1 4 RE S E R V E S & D E F E R R A L S A P P O R T I O N M E N T 11 1 5 0 0 O t h e r J u r i s A s s e s - N e t Ln 1 1 a " ' 7 12 3 1 0 0 A c c u m D e p r . S u p p o r t A s s e t s Ln 1 2 a " ' 1 1, 1 5 9 , 2 9 6 19 2 , 4 9 3 8, 3 2 1 13 , 7 3 8 27 8 , 5 7 7 38 4 , 7 0 4 28 1 , 4 6 3 13 -C O E S w i t c h i n g Ln 1 3 a * 2 3,5 1 9 , 3 8 0 3, 5 1 9 , 3 8 0 14 -C O E O p e r a t o r Ln 1 4 a " ' 3 15 -C O E T r a n s m i s s i o n Ln 1 5 a * 4 2,0 3 9 , 7 8 0 67 0 , 5 7 2 75 , 4 0 3 67 6 , 8 8 6 61 6 , 9 2 0 16 -lO T Ln 1 6 a * 5 17 -C & W F Ln 1 7 a * 6 4,1 5 3 , 0 7 0 75 0 , 6 0 2 87 , 0 2 1 1,9 6 3 , 7 5 7 1,3 5 1 , 6 9 1 18 T O T A L A C C U M U L A T E D D E P R E C I A T I O N Ln 1 2 . . 1 7 10 , 8 7 1 , 5 2 6 1,6 1 3 , 6 6 7 83 , 7 2 4 10 0 , 7 5 8 3,7 9 7 , 9 5 7 3, 0 2 5 , 3 4 7 2, 2 5 0 , 0 7 3 19 3 2 0 0 A c c m D e p r P r o p e r t H e l d 20 Fo r F u t u r e T e l e c o m U s e Ln 2 0 a ' 7 21 3 4 0 0 A c c m A m o r t T a n g i b l e 22 Ca p i t a l L e a s e s Ln 2 2 a * 8 23 Le a s e h o l d I m p r o v Ln 2 3 a * 9 24 T O T A L A C C U M U L A T E D A M O R T - T A N G I B L E Ln 2 2 . . 2 3 25 3 5 0 0 A c c u m A m o r t - I n t a n g i b l e Ln 2 5 a * 7 26 3 6 0 0 A c c u m A m o r t - O t h e r Ln 2 6 a * 1 0 27 4 0 4 0 C u s t o m e r D e p o s i t s Ln 2 7 a * 7 2,5 7 9 42 8 19 31 62 0 85 6 62 6 28 Dir e c t A s s i g n m e n t Ln 2 8 a " ' 7 29 T O T A L C U S T O M E R D E P O S I T S Ln 2 7 . . 2 8 2,5 7 9 42 8 19 31 62 0 85 6 62 6 Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 20 of 26 21 2 5 / 2 0 0 8 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 6 RE S E R V E S A N D D E F E R R A L S A- 1 5 Pa g e 2 o f 2 IN T E R S T A T E JU R I S S c i a l A c c e s s Lo c a l In f o m i a t i a n Eq u a l Tr a n s a r t Ca r r i e r C o m m o n L i n e B& C In t e r - TO T A L Ch a n T e m i CM - T e r m CM . F a c i l Sw i t c h i n g Di r l ~ s s t Su r c h a r g e A% ' S S Tra n s m i s s i o n Ta n d e m S w Pa y B~ P Re c o r d Pr o c s s ex c ~ o ~ n g e LI N E DE S C R I P T I O N SO U R C E a) b 'e ' 'd ' e 'n ) I) Ii ) (k ) I) (m ) (n ) AP P O R T I O N M E N T F A C T O R S I 30 2 1 1 0 S u p p o r t As s e t s D i s t r A- 4 , L n 8 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 31 2 2 1 0 C O E S w i t c h i n g D i s t r A- 2 , L n 7 2 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 32 2 2 2 0 C O E O p e r a t o r D i s t r A- 5 , L n 1 6 33 2 2 3 0 C O E T r a n s m i s s i o n D i s t r A- 5 , L n 7 2 10 0 . 0 0 0 0 % 32 . 8 7 4 7 % 3.6 9 6 6 % 33 . 1 8 4 3 % 30 . 2 4 4 4 % 34 2 3 1 0 l O T D i s t r A- 6 , L n 1 5 35 2 4 1 0 C & W F D i s t r A- 7 , L n 4 0 10 0 . 0 0 0 0 % 18 . 0 7 3 4 % 2.0 9 5 3 % 47 . 2 8 4 5 % 32 . 5 4 6 8 % 36 2 0 0 1 T e l P i t i n S v c D i s t r A- 2 , L n 1 5 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % 37 B i g T h r e e E x p e n s e s D i s t r A- 3 , L n 6 10 0 . 0 0 0 0 % 15 . 3 6 8 5 % 0.8 1 5 1 % 0.9 0 6 6 % 24 . 1 5 5 3 % 27 . 8 4 2 7 % 25 . 3 9 0 5 % 2.9 9 2 4 % 2.5 2 8 9 % 38 G S F , C O E , I O T , C & W F , E Q A c s ( L S ) A- 2 , l n 5 3 10 0 . 0 0 0 0 % 16 . 6 0 4 3 % 0.7 1 7 8 % 1.1 8 5 0 % 24 . 0 2 9 8 % 33 . 1 8 4 3 % 24 . 2 7 8 8 % RE S E R V E S & D E F E R R A L S A P P O R T I O N M E N T 39 4 1 0 0 N e t Cu r De f O p In c Ta x e s 40 Su p p o r t A s s e t s Ln 4 0 a " 3 0 41 CO E - S w i t c h i n g Ln 4 1 a " 3 1 42 CO E - O p e r a o r Ln 4 2 a " 3 2 43 CO E . T r a n s m i s s i o n Ln 4 3 a " 3 3 44 lO T Ln 4 4 a " 3 4 45 C& W F Ln 4 5 a " 3 5 46 No t C l a s s i f i e d b y A c c o u n t Ln 4 6 a " 3 6 47 T O T A L N E T C U R D E F O P I N C T A X E S Ln 4 0 . . 4 6 48 D i s t r i b u t i o n o f L i n e 4 8 ln 4 7 / 4 7 a 49 4 3 1 0 O t h e r Lo n g - T e r m L i a b i l t i e s Ln 4 9 a " 3 8 32 , 5 7 5 5, 4 0 9 23 4 38 6 7,8 2 8 10 , 8 1 0 7,9 0 9 50 4 3 4 0 N e t N o n c u r r e n t D e f T a x e s 51 Su p p o r t A s s e t s Ln 5 1 a " 3 0 52 CO E - S w i t c h i n g Ln 5 2 a " 3 1 53 CO E - O p e r a o r Ln 5 3 a " 3 2 54 CO E - T r a n s m i s s i o n Ln 5 4 a " 3 3 55 In f o O r i g f T e r m E q u i p Ln 5 5 a " 3 4 56 C& W F Ln 5 8 a " 3 5 57 No t C l a s s i f i e d b y A c c Ln 5 7 a " 3 6 15 2 , 8 1 2 25 , 3 7 3 1,0 9 7 1,8 1 1 36 , 7 2 1 50 , 7 1 0 37 , 1 0 1 58 T O T A L N E T N O N C U R R E N T O E F T A X E S Ln 5 1 . . 5 7 15 2 , 8 1 2 25 , 3 7 3 1,0 9 7 1,8 1 1 36 , 7 2 1 50 , 7 1 0 37 , 1 0 1 59 4 3 6 0 O t e r D e f e r r e d C r e d i t s - N e t Ln 5 9 a " 3 8 60 4 3 7 0 O t h e r J u r i s L i a b i l i t i e s 61 & D e f e r r d C r e d i t s - N e t Ln 6 1 a " 3 8 AL L O W / D I S A L L O W A N C E S A P P O R T I O N M E N T I 62 A c c u m D e p r & A m o r t A l l o w l O i s a l l o w Ln 6 2 a " 3 8 63 Di r e c t A s s i g n m e n t Ln 6 3 a " 3 8 64 T O T A L A C C D E P R / A M O R T A L W / D l S A L L O W Ln 6 2 . . 6 3 Pr o p r i e t a r y l n f o n n a t i o n Mo s s A d a m s , L L P 21 0 f 2 6 Alb i o n T e l e p h o n e C o m p a n y . R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 LI N E DE S C R I P T I O N 1 6 6 2 0 T e l e p h o n e O p e r a t o r S e r v i c e s Si d W o r k S e c o n d s ~ M a n u a l B o a r d s SW S . M a n u a l B o a r d s % St d W o r k S e c o n d s . T S P S SW S - T S P S % St d W o r k S e c o n d s ~ O p e r a t o r s SW S - O p e r a t o r % 8 O p e r a t o r S e r v i c e s U n d e r C o n t r a c t 9 T r a n s p o r t 10 I n f o r m a t i o n 11 L o c a l S w i t c h i n g 12 A l l O t h e r 13 T o t a l 14 O p e r a t o r S e r v c e s U n d e r C o n t r a c t % 15 6 6 2 0 L o c a l B u s i n e s s O f c e 16 E U S e r v i c e O r d e r P r o c e s s i n g 17 L E C ' s o w n T o l l S e r v i c e 18 C o n c e r n i n g I X C ' s T o l l s e r v i c e 19 E U S O P C o n t a c t % 20 E U P a y m e n t & C o l l e c t i o n 21 L E C ' s O w n T o l l B i l i n g 22 B i l l i n g o n B e h a l f o f I X C 23 E n d U s e r C C L C h a r g e s 24 E U P & C % 25 E U B i l l i n g I n q u i r y 26 L E C ' s O w n T o l l Bil i n g 27 B i l l n g o n B e h a l f o f I X C 28 E n d U s e r C C L C h a r g e s 29 E U B I % 30 I X C S e r v i c e O r d e r C o n t a c t s 31 M s g T o l l a n d A c c s s S e r v i c e 32 B i l l i n g a n d C o l l e c t i o n S e r v i c e 33 I X C S O C o n t a c t % 34 I X C B i l e d R e v e n u e 35 T o t a l E x c l u d i n g B & C 36 B i l l n g a n d C o l l e c t i o n s 37 I X C p a c % 38 I X C B i l i n g I n q u i r y C o n t a c t s 39 T o t a l E x c l u d i n g B & C 40 B i l i n g a n d C o l l e c t i o n s 41 I X C 8 1 C o n t a c t % 42 P u b l i c T e l e p h o n e R e v e n u e 43 l i m i t e d P u b l i c T e l e p h o n e s 44 P u b l i c I n t e r e s t P a y s t a t i o n s 45 I X C B I C o n t a c t % Pro p r i e t a r y I n f o n n a t i o n SO U R C E Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s 2/ 2 5 1 2 0 0 8 DI S T R I B U T I O N F A C T O R S A~ 1 6 IN T E R S T A T E~TO T A L ~ Ca r r i e r C o m m o n l i n e Pa y B F P k) ( I BB C Re c o r d - P r o c e s s ml ( n In t e r - ex c h a n g e o Ch a n T e n n b Mo s s A d a m s , L L P 22 of 26 21 2 5 1 2 0 0 8 Al b i o n T e l e p h o n e C o m p a n y . R e s t a t e m e n t Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 6 SE P A R A T I O N I N P U T S A N D F E D R A L I N C O M E T A X A D J U S T M E N T A N A L Y S I S A- 1 7 Lin e Ye a r So u r c e To t a l To t a l S p e c i a l Ac c s s Sp e c i a l A c c e s s Ch a n n e l C h a n n e l M i l e a g e C h a n n e l M i l e a g 1 T o t & . . . . . . . . . i i e . . Te r m i n a t i o n T e r m i n a t i o n F a c i l i t v A c c e s s Re v e n u e R e q u i r e m e n t s d ' 0 . . ; 0 - . , . ~ Sw i t c h e d A c c e s s Lo c a l I n f o r m a t i o n Sw i t c h i m : i ( A ) S u r c h a r a e Tr a n s p o r t Co m m o n L i n e Ca r r i e r C a m m a i Lin e No n A c c e s 'B IX Ad j u s t e d R e v e n u e R e q u i r e m e n t Ln 6 + L n 9 + l n 1 2 ~ 95 5 , 9 1 8 85 8 , 4 5 9 41 , 5 6 6 55 , 8 9 3 2.5 3 5 , 1 4 6 1.1 2 7 , 9 2 4 1, 4 0 7 , 2 2 2 1, 4 3 5 , 2 5 8 11 6 , 9 2 7 SO U R C E TO T A L CO M P A N Y 2,4 9 4 , 2 4 1 Av e r a g e N e t I n v e s t m e n t A-1 , L n 3 8,6 6 9 , 4 4 9 Ex p e n s e & O t h e r T a x e s St a t e I n c o m e T a x Un c o l e c t i b l e s All o c a t e d L i n e P o r t R e v e n u e R e q u i r m e n t s All o c a t e d T I C R e v e n u e s To t a l E x p e n s e & O t h e r T a x e s A-1 , L n 2 1 A-1 ~ L n 1 7 A.1 , L n 2 2 A.1 , L n 3 1 A-1 , L n 3 5 3,5 8 3 , 6 0 4 91 , 1 2 5 3,6 7 4 , 7 2 8 In c o m e f r m I n t e r e s t C h a r g e d t o C o n s t r u c t i o n A-1 , L n 2 6 10 I n c o m e A d j u s t m e n t f o r F I T A.1 7 , L n 2 6 24 5 , 0 6 9 11 FIT T a x C r e d i t A.1 , L n 4 5 + 5 8 B& C In t e r - ex c h a n g e 2, LN DE S C R I P T I O N Re c o r d m ST E P A . D e t e r m i n e E f f c t i v e T a x R a t e 12 E f f e c t v e F I T R a t e 13 G r o s s - u p F a c t o r 14 R e t u r n o n I n v e s t m e n t 15 I n c o m e A d j u s t m e n t f o r F I T 16 F I T T a x C r e d i t s 17 F I T A m o u n t a t E C ' s E f f e c t v e F I T R a t e A-1 , L n 5 0 / 4 7 A-1 , L n 5 A-1 , L n 4 6 - 4 5 A.1 , L n 4 5 (( L n 1 4 - 1 5 - 1 6 ) * 1 3 ) - 1 6 ST E P B - D e t e r m i n e E C ' s T a x A l l o w a n c e b a s e d u p o n N E C A S e t t l e m e n t S y s t e m C a l c u l a t i o n 17 M a x i m u m T a x R a t e P e r N E C A R e c o r d s I 3 5 . 0 0 0 0 % 18 G r o s s - u p F a c t o r 5 3 . 8 4 6 2 % 19 F I T B a s e A m o u n t L n 1 4 - 1 5 - 1 6 8 3 0 , 5 9 6 20 F I T a t M a x i m u m T a x R a t e 4 4 7 , 2 4 4 ST E P C . G r o s s u p o f D i f f e r e n c e B e t w e e n E f f e c t i v e R a t e a n d M a x i m u m R a t e 21 D i f f e r e n c e i n I n c o m e T a x A m o u n t s L n 1 7 - 2 0 22 G r o s s u p o f D i f f e r e n c e i n T a x A m o u n t s L n 2 1 / 1 8 23 A m o u n t t o B e R e p o r t e d a s I n c o m e Ad j u s t m e n t f o r F I T L n 1 5 + 2 2 54 , 0 3 6 10 0 , 3 5 2 10 , 3 7 4 19 , 2 6 5 34 6 64 3 64 6 1, 5 7 1 4,3 0 8 8,0 0 0 22 , 1 9 3 41 , 2 1 6 24 5 , 0 6 9 43 , 2 9 5 1, 6 8 2 3,2 8 6 42 , 7 7 6 89 , 2 3 9 15 , 9 6 9 29 , 6 5 7 64 , 7 9 3 ST E P D - V e r i f i c a t i o n o f L i n e 1 2 C o m p u t a t i o n 24 ( ( L n 3 - L n 1 2 . L n 5 ) x L n 7 ) . L n 5 39 3 , 2 0 8 75 , 4 8 7 2,5 1 9 6,1 5 4 31 , 3 4 7 16 1 , 4 9 5 11 6 , 2 0 5 In c o m e A d j u s t m e n t f o r F I T : R e c a l c u l a t i o n 25 I n t e r s t a t e A f t e r T a x I n c o m e ( A 1 , I n . 2 0 ) 26 I n t e r s t a t e F I T ( A 1 , I n . 4 5 ) 83 0 , 5 9 6 39 3 , 2 0 8 1,2 2 3 , 8 0 4 Ad j u s t m e n t : (L n 1 + L n 2 " . 3 5 . L n 2 10 0 , 3 5 2 0.3 5 Co m m o n L i n e Tr a f f c S e n s i t i v e . S W Tr a f f c S e n s i t i v e - S P B& C Fix e d Mis c . I n c o m e In c o m e A d j . FI T Ad j u s t m e n t Ch a r g e s Ad j u s t m e n t (c o l s 2 + 3 - 4 (1 ) (2 ) (3 ) (4 ) (5 A1 / n . 4 5 A1 / n . 1 1 A1 / n . 1 9 11 6 , 2 0 5 29 , 6 5 7 35 , 1 3 6 64 , 7 9 3 19 2 , 8 4 3 49 , 2 1 6 82 , 7 9 9 13 2 , 0 1 5 84 , 1 6 0 21 , 4 7 9 26 , 7 8 3 48 , 2 6 2 39 3 , 2 0 8 10 0 , 3 5 2 14 4 , 7 1 7 24 5 , 0 6 ~ I OK 10 0 , 3 5 2 Ad j u s t m e n t b y P o o l : To t a l Ch e c k s u m Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 23 0 f 2 6 CO M M O N LI N E CL E x e n s e s & O t h e r T a x e s CL E a T A m o u n t Un i v e r s a l S e r v i c e C o n t r i b u t i o n R e i m b CL A v e r a g e N e t I n v e s t m e n t CL I n c o m e f r o m A F U D C CL I n c o m e A d j u s t m e n t f o F I T CL F I T T a x C r e d i t TS . S W I T C H E D A C C E S S SW E x p e n s e s & O t h e r T a x e s SW A v e r a g e N e t I n v e s t m e n t SW I n c o m e f r o m A F U D C SW I n c o m e A d j u s t m e n t f o r F I T SW F I T T a x C r e d i t TS - S P E C I A L A C C E S S SP E x p e n s e s & O t h e r T a x e s SP A v e r a g e N e t I n v e s t m e n t SP I n c o m e f r o m A F U D C SP I n c o m e A d j u s t m e n t f o r F I T SP F I T T a x C r e d i t Pr o p r i e t a r y l n f o m i a t i o n Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Po o l R e p o r t n g S u m m a r y SY E 1 2 1 3 1 1 0 6 An n u a l Mo n t h l y 10 5 0 I n p u t L i n e 1,0 0 2 , 3 3 6 83 , 5 2 8 9A 36 , 1 1 5 3,0 1 0 98 2,4 9 4 , 2 4 1 2,4 9 4 , 2 4 1 10 11 64 , 7 9 3 5,3 9 9 12 13 1,8 5 2 , 1 5 2 15 4 , 3 4 6 17 4,3 5 6 , 9 0 1 4,3 5 6 , 9 0 1 18 19 13 2 , 0 1 5 11 , 0 0 1 20 21 66 7 , 1 9 8 55 , 6 0 0 25 1,8 1 8 , 3 0 7 1,8 1 8 , 3 0 7 26 27 48 , 2 6 2 4,0 2 2 28 29 2/2 5 1 2 0 0 8 A-1 8 Mo s s A d a m s , L L P 24 of 26 Ex p e n s e s & O t h e r T a x e s Av e r a g e N e t I n v e s t m e n t ( J a n . D e c ) Ra t e o f Re t u r n Re t u r n o n I n v e s t m e n t In c o m e A d j u s t m e n t IT C RO I . l n c A d j . T C Gr o s s - u p Ra t e To t a l F I T ( ( P I T B a s e * G r o s s . u p r a t e H T C ) AP U D C Re v e n u e R e q u i r e m e n t ( E X P + R O I + F 1 T - A P U D C ) Ca r r i e r C o m m o n L i n e Ex p & O t h e r T a x e s Av g N e t l n v e s t AP U D C In c o m e A d j u s t f o r P I T PIT T a x C r e d i t Tr a f f c S e n s i t i v e - S W , Ex p e n s e s & O t h e r T a x e s Av g N e t l n v e s t AP U D C In c o m e A d j u s t f o r F I T FIT T a x C r e d i t Tra f f c S e n s i t i v e - S P Ex p e n s e s & O t h e r T a x e s Av g N e t l n v e s t AF U D C In c o m e A d j u s t t o r F I T FIT T a x C r e d i t Pr o p r i e t a r y I n f o r m a t i o n Al b i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t AN A L Y S I S O F N E C A I N T E R S T A T E S E T T L E M E N T F O R M S SY E 1 2 1 3 1 / 0 6 To t a l R e v R e q I m p a c t ce L Sw i t c h e d Sp e c i a l 17 . 1 3 1 36 , 8 0 4 9, 9 4 6 (6 , 4 9 2 ) (1 5 , 2 9 6 ) (4 , 9 4 8 ) 11 , 2 5 0 0 % 11 , 5 0 0 % 11 . 2 5 0 0 % (7 3 0 ) (1 , 7 2 1 ) (5 5 7 ) (7 9 ) (1 7 7 ) (5 0 ) (6 5 1 ) (1 , 5 4 4 ) (5 0 6 ) 47 . 3 4 0 5 % 47 . 3 4 0 5 % 47 . 3 4 0 5 % (3 0 8 ) (7 3 1 ) (2 4 0 ) 16 , 0 9 3 34 , 3 5 3 9, 1 4 9 59 , 5 9 5 St u d y Y e a r : 2 0 0 6 S t u d y Y e a r : 2 0 0 6 A n n u a l M o n t h l y Ac c e s s C o s t R e p o r t e d t o A d j u s t m e n t A d j u s t m e n t St u d y N E C A ( c o l I - c o l 2 ) ( c o l 3/ 1 2 ) (I ) ( 2 ) ( 3 ) ( 4 ) 1,0 3 8 , 4 5 1 1,0 2 1 , 3 2 0 17 , 1 3 1 1,4 2 8 2,4 9 4 , 2 4 1 2,5 0 0 , 7 3 3 (6 , 4 9 2 ) N/ A 64 , 7 9 3 64 , 8 7 2 (7 9 ) (7 ) 1,8 5 2 , 1 5 2 1,8 1 5 , 3 4 8 36 , 8 0 4 3,0 6 7 4,3 5 6 , 9 0 1 4,3 7 2 , 1 9 7 (1 5 , 2 9 6 ) N/ A 13 2 , 0 1 5 13 2 , 1 9 2 (1 7 7 ) (I S ) 66 7 , 1 9 8 65 7 , 2 5 2 9,9 4 6 82 9 1,8 1 8 , 3 0 7 1, 8 2 3 , 2 5 5 (4 , 9 4 8 ) N/ A 48 , 2 6 2 48 , 3 1 2 (5 0 ) (4 ) 2/ 2 5 1 2 0 0 8 A. 1 9 Mo s s A d a m s , L L P 25 0 f 2 6 Alb i o n T e l e p h o n e C o m p a n y - R e s t a t e m e n t Ca l c u l a t i o n o f N E C A P o o l E a r n i n g s A c c r u a l SY E 1 2 1 3 1 1 0 6 Li n e N o Ea r n i n g s A c c u a l I De s c r i p t i o n S o u r c e C o m m o n U n e T S . S w i t c h e d T S - S p e c i a l T o t a l Cu r r e n t P o o l R a t e o f R e t u r n ( R O R ) NE C A 3 0 5 0 10 . 9 3 0 0 % 10 . 8 1 0 0 % Ma x i m u m A l l o w e d R O R FC C 11 . 2 5 0 0 % 11 . 6 5 0 0 % 3 Dif f e r e n c e Ln 1 - L n 2 (0 . 3 2 0 0 % ) (0 . 8 4 0 0 % ) 4 Ta x A l l o w a n c e Gr o s s - u p l I 3 5 % 1.5 3 8 4 6 2 1.5 3 8 4 6 2 1.5 3 8 4 6 2 5 Ac c r u a l F a c t o r Ln 3 - L n 4 (0 . 4 9 2 3 % ) (1 . 2 9 2 3 % ) 6 Av e r a g e N e t I n v e s t m e n t 24 M o n t h L a t e s t V i e w 2,5 0 0 , 7 3 3 6,1 9 5 , 4 5 2 7 To t a l O v e r - e a r n i n g s A c c r u a l Ln S - L n 6 (1 2 , 3 1 1 ) (8 0 , 0 6 4 ) (9 2 , 3 7 6 ) Pro p r i e t a r y I n f o r m a t i o n 21 2 5 1 2 0 0 8 A- 2 0 Mo s s A d a m s , L L P 26 of 26