47 CFR § 65.302 - Cost of debt.

---
identifier: "/us/cfr/t47/s65.302"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "47 CFR § 65.302 - Cost of debt."
title_number: 47
title_name: "Telecommunication"
section_number: "65.302"
section_name: "Cost of debt."
chapter_name: "FEDERAL COMMUNICATIONS COMMISSION"
subchapter_number: "B"
subchapter_name: "COMMON CARRIER SERVICES"
part_number: "65"
part_name: "INTERSTATE RATE OF RETURN PRESCRIPTION, PROCEDURES, AND METHODOLOGIES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220, 254, 303(r), 403, and 1302 unless otherwise noted."
cfr_part: "65"
---


# 65.302 Cost of debt.

The formula for determining the cost of debt is equal to:

Where:

“Total Annual Interest Expense” is the total interest expense for the most recent year for all local exchange carriers with annual revenues equal to or above the indexed revenue threshold as defined in § 32.9000 of this chapter.

“Average Outstanding Debt” is the average of the total debt outstanding at the beginning and at the end of the most recent year for all local exchange carriers with annual revenues equal to or above the indexed revenue threshold as defined in § 32.9000 of this chapter.

[81 FR 24344, Apr. 25, 2016]