E - RateBase

Appendix E

Summary of Adopted Adjustments to Rate Base

Pacific Bell Intrastate Regulated Operations

Phases 2A and 2B

Adopted Adjustments to Rate Base

1997

1998

1999

Total

Reference

Phase 2A

Accumulated Deferred Income Tax

$0

$43,446,454

$132,371,666

$175,818,120

See footnotes 1, 2, and 3 below.

(Note 1)

(Note 2)

(Note 3)

Subtotal Phase 2A

$0

$43,446,454

$132,371,666

$175,818,120

Phase 2B

SFAS 106 Accrued Liability

$124,000

($5,998,000)

$5,352,000

($522,000)

Phase 2B Decision, Appendix A, Index No. 31

SFAS 112 Accrued Liability

($213,204,405)

($236,462,847)

($255,430,427)

($705,097,679)

Phase 2B Decision, Appendix A, Index No. 29

Vacation Liability

($51,867,976)

($51,359,429)

($45,735,145)

($148,962,550)

Phase 2B Decision, Appendix A, Index No. 30

Accrued Contingent Liability

($28,039,000)

($20,106,000)

($7,800,000)

($55,945,000)

Phase 2B Decision, Appendix A, Index No. 32

Depreciation Expense Timing Adjustment

$0

$0

$2,917,083

$2,917,083

Phase 2B Decision, Appendix A, Index No. 60a

Cash Working Capital

($511,550,000)

($530,735,000)

($378,865,000)

($1,421,150,000)

Phase 2B Decision, Appendix A, Index No. 27

Prepaid Directory Expense

$93,805,000

$83,904,000

$71,382,000

$249,091,000

Phase 2B Decision, Appendix A, Index No. 28

Restructure Reserve

($29,070,727)

($29,024,711)

($28,975,159)

($87,070,597)

Phase 2B Decision, Appendix A, Index No. 35

Accumulated Reserve for Depreciation

$14,069,957

$36,308,845

$46,060,404

$96,439,206

Phase 2B Decision, Appendix A, Index No. 36

Excess Deferred Income Tax

$0

$12,800,000

$38,400,000

$51,200,000

Phase 2B Decision, Appendix A, Index No. 38

LNP Rate Base

($14,482,000)

($32,794,000)

($43,507,000)

($90,783,000)

Phase 2B Decision, Appendix A, Line No. 70

AFUDC

($2,327,000)

($8,370,000)

($12,964,000)

($23,661,000)

Phase 2B Decision, Appendix A, Index No. 71

PBOP Pre-Funding Plant Adj.

$13,312,000

$13,312,000

$13,312,000

$39,936,000

Phase 2B Decision, Appendix A, Index No. 72

Accumulated Deferred Income Tax

($57,788,323)

($55,160,036)

($43,318,848)

($156,267,207)

Phase 2B Decision, Appendix A, Index No. 37

Subtotal Phase 2B

($787,018,474)

($823,685,178)

($639,172,092)

($2,249,875,744)

Total Phase 2A and 2B

($787,018,474)

($780,238,724)

($506,800,426)

($2,074,057,624)

Note 1: All of the Phase 2A adjustment to accumulated deferred income tax relates to the CHCF-B. The source of the information is Overland Exhibit Phase 2A: 404, Volume 2, Attachment 9-10.

Note 2: 43,446,454 = ((110,252,000 - 0)/2))*0.78813

Note 3: 132,371,666 = ((222,880,000 - 110,252,000)/2))*0.79471


Appendix E

Summary of Adopted Adjustments to Rate Base
Pacific Bell Intrastate Regulated Operations
Phases 2A and 2B


Adopted Adjustments to Rate Base	1997	1998	1999	Total	Reference

Phase 2A

Accumulated Deferred Income Tax	$0	$43,446,454	$132,371,666	$175,818,120	See footnotes 1, 2, and 3 below.
(Note 1)		(Note 2)	(Note 3)
Subtotal Phase 2A	$0	$43,446,454	$132,371,666	$175,818,120

Phase 2B

SFAS 106 Accrued Liability	$124,000	($5,998,000)	$5,352,000	($522,000)	Phase 2B Decision, Appendix A, Index No. 31
SFAS 112 Accrued Liability	($213,204,405)	($236,462,847)	($255,430,427)	($705,097,679)	Phase 2B Decision, Appendix A, Index No. 29
Vacation Liability	($51,867,976)	($51,359,429)	($45,735,145)	($148,962,550)	Phase 2B Decision, Appendix A, Index No. 30
Accrued Contingent Liability	($28,039,000)	($20,106,000)	($7,800,000)	($55,945,000)	Phase 2B Decision, Appendix A, Index No. 32
Depreciation Expense Timing Adjustment	$0	$0	$2,917,083	$2,917,083	Phase 2B Decision, Appendix A, Index No. 60a
Cash Working Capital	($511,550,000)	($530,735,000)	($378,865,000)	($1,421,150,000)	Phase 2B Decision, Appendix A, Index No. 27
Prepaid Directory Expense	$93,805,000	$83,904,000	$71,382,000	$249,091,000	Phase 2B Decision, Appendix A, Index No. 28
Restructure Reserve	($29,070,727)	($29,024,711)	($28,975,159)	($87,070,597)	Phase 2B Decision, Appendix A, Index No. 35
Accumulated Reserve for Depreciation	$14,069,957	$36,308,845	$46,060,404	$96,439,206	Phase 2B Decision, Appendix A, Index No. 36
Excess Deferred Income Tax	$0	$12,800,000	$38,400,000	$51,200,000	Phase 2B Decision, Appendix A, Index No. 38
LNP Rate Base	($14,482,000)	($32,794,000)	($43,507,000)	($90,783,000)	Phase 2B Decision, Appendix A, Line No. 70
AFUDC	($2,327,000)	($8,370,000)	($12,964,000)	($23,661,000)	Phase 2B Decision, Appendix A, Index No. 71
PBOP Pre-Funding Plant Adj.	$13,312,000	$13,312,000	$13,312,000	$39,936,000	Phase 2B Decision, Appendix A, Index No. 72
Accumulated Deferred Income Tax	($57,788,323)	($55,160,036)	($43,318,848)	($156,267,207)	Phase 2B Decision, Appendix A, Index No. 37
Subtotal Phase 2B	($787,018,474)	($823,685,178)	($639,172,092)	($2,249,875,744)

Total Phase 2A and 2B	($787,018,474)	($780,238,724)	($506,800,426)	($2,074,057,624)


Note 1: All of the Phase 2A adjustment to accumulated deferred income tax relates to the CHCF-B. The source of the information is Overland Exhibit Phase 2A: 404, Volume 2, Attachment 9-10.


Note 2: 43,446,454 = ((110,252,000 - 0)/2))*0.78813
Note 2: 43,446,454 = ((110,252,000 - 0)/2))*0.78813

Note 3: 132,371,666 = ((222,880,000 - 110,252,000)/2))*0.79471