C - Summary

Appendix C

Financial Summary of Adopted Adjustments

Pacific Bell Intrastate Regulated Operations

Phases 2A and 2B

1997

1998

1999

Reference

1.

Net Operating Income Reported by Pacific Bell

$652,499,328

$922,472,419

$962,198,083

Exhibit Phase 2A: 400, p. 11.

2.

Adopted Adjustments: Phase 2A

($7,924,000)

($64,065,000)

$241,699,000

Appendix D of today's Decision.

3.

Adopted Adjustments: Phase 2B

$176,985,082

$207,495,303

$21,464,691

Appendix D of today's Decision.

4.

Adopted Net Operating Income

$821,560,410

$1,065,902,722

$1,225,361,774

5.

Rate Base Reported by Pacific Bell

$10,057,145,000

$10,170,675,000

$9,963,603,000

Exhibit Phase 2A: 404, Attach. 11-21.

6.

Adopted Adjustments: Phase 2A

-

$43,446,454

$132,371,666

Appendix E of today's Decision.

7.

Adopted Adjustments: Phase 2B

($505,463,553)

($458,068,338)

($411,276,964)

Appendix E of today's Decision.

8.

Adopted Rate Base

$9,551,681,447

$9,756,053,116

$9,684,697,702

9.

Rate of Return Reported by Pacific Bell

6.49%

9.07%

9.66%

Exhibit Phase 2A: 400, p. 11.

10.

Adopted Adjustments: Phase 2A

-0.08%

-0.66%

2.34%

Note 1, Line 21.

11.

Adopted Adjustments: Phase 2B

2.19%

2.51%

0.66%

Note 1, Line 22.

12.

Adopted Rate of Return

8.60%

10.93%

12.65%

Line 4/Line 8, or Line 9 + Line 10 + Line 11.

Note 1: ROR Impact of Adopted Adjustments

1997

1998

1991

13.

ROR Impact of Phase 2A Adjustments

-0.08%

-0.67%

2.27%

((Line 1 + Line 2)/(Line 5 + Line 6)) - (Line 1/Line 5).

14.

ROR Impact of Phase 2B Adjustments

2.20%

2.56%

0.64%

((Line 1 + Line 3)/(Line 5 + Line 7)) - (Line 1/Line 5).

15.

Subtotal

2.12%

1.89%

2.91%

Line 13 + Line 14

16.

Proportionate Impact - Phase 2A

-3.77%

-35.45%

78.01%

Line 13/Line 15

17.

Proportionate Impact - Phase 2B

103.77%

135.45%

21.99%

Line 14/Line 15

18.

Adopted Rate of Return

8.60%

10.93%

12.65%

Line 12

19.

Reported Rate of Return

6.49%

9.07%

9.66%

Line 9

20.

Difference

2.11%

1.86%

3.00%

Line 18 - Line 19

21.

Difference Attributable to Phase 2A Adjustments

-0.08%

-0.66%

2.34%

Line 16 x Line 20

22.

Difference Attributable to Phase 2B Adjustments

2.19%

2.51%

0.66%

Line 17 x Line 20

23.

Total

2.11%

1.86%

3.00%

Line 21 + Line 22


	Appendix C
	Financial Summary of Adopted Adjustments
	Pacific Bell Intrastate Regulated Operations
	Phases 2A and 2B


		1997	1998	1999	Reference

1.	Net Operating Income Reported by Pacific Bell	$652,499,328	$922,472,419	$962,198,083	Exhibit Phase 2A: 400, p. 11.

2.	Adopted Adjustments: Phase 2A	($7,924,000)	($64,065,000)	$241,699,000	Appendix D of today's Decision.
3.	Adopted Adjustments: Phase 2B	$176,985,082	$207,495,303	$21,464,691	Appendix D of today's Decision.

4.	Adopted Net Operating Income	$821,560,410	$1,065,902,722	$1,225,361,774

5.	Rate Base Reported by Pacific Bell	$10,057,145,000	$10,170,675,000	$9,963,603,000	Exhibit Phase 2A: 404, Attach. 11-21.

6.	Adopted Adjustments: Phase 2A	-	$43,446,454	$132,371,666	Appendix E of today's Decision.
7.	Adopted Adjustments: Phase 2B	($505,463,553)	($458,068,338)	($411,276,964)	Appendix E of today's Decision.

8.	Adopted Rate Base	$9,551,681,447	$9,756,053,116	$9,684,697,702

9.	Rate of Return Reported by Pacific Bell	6.49%	9.07%	9.66%	Exhibit Phase 2A: 400, p. 11.

10.	Adopted Adjustments: Phase 2A	-0.08%	-0.66%	2.34%	Note 1, Line 21.
11.	Adopted Adjustments: Phase 2B	2.19%	2.51%	0.66%	Note 1, Line 22.

12.	Adopted Rate of Return	8.60%	10.93%	12.65%	Line 4/Line 8, or Line 9 + Line 10 + Line 11.


	Note 1: ROR Impact of Adopted Adjustments

		1997	1998	1991
13.	ROR Impact of Phase 2A Adjustments	-0.08%	-0.67%	2.27%	((Line 1 + Line 2)/(Line 5 + Line 6)) - (Line 1/Line 5).
14.	ROR Impact of Phase 2B Adjustments	2.20%	2.56%	0.64%	((Line 1 + Line 3)/(Line 5 + Line 7)) - (Line 1/Line 5).
15.	Subtotal	2.12%	1.89%	2.91%	Line 13 + Line 14
16.	Proportionate Impact - Phase 2A	-3.77%	-35.45%	78.01%	Line 13/Line 15
17.	Proportionate Impact - Phase 2B	103.77%	135.45%	21.99%	Line 14/Line 15
18.	Adopted Rate of Return	8.60%	10.93%	12.65%	Line 12
19.	Reported Rate of Return	6.49%	9.07%	9.66%	Line 9
20.	Difference	2.11%	1.86%	3.00%	Line 18 - Line 19
21.	Difference Attributable to Phase 2A Adjustments	-0.08%	-0.66%	2.34%	Line 16 x Line 20
22.	Difference Attributable to Phase 2B Adjustments	2.19%	2.51%	0.66%	Line 17 x Line 20
23.	Total	2.11%	1.86%	3.00%	Line 21 + Line 22