No. 28615 (Amendment): R746-345-3. Tariffs and Contracts

DAR File No.: 28615
Filed: 04/13/2006, 01:37
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to provide for the provision of cost information relating to make-ready work involving electric utility pole space alone or all make-ready work.

 

Summary of the rule or change:

When make-ready work entails changes to equipment in an electric utility's pole space, the rule amendment identifies how an applicant for a pole attachment may obtain cost information for all make-ready work required to accommodate the proposed attachment or just that associated with make-ready work involving the electric utility's pole space and affected equipment.

 

State statutory or constitutional authorization for this rule:

Section 54-4-13 and 47 U.S.C. 224(c)

 

Anticipated cost or savings to:

the state budget:

None--State agency activity in relation to pole attachment activities will stay the same.

 

local governments:

None--Local government activities are not affected by this rule. Local governments are not pole owners and are not regulated by this rule, nor by the Commission.

 

other persons:

None--Compliance with the rule should not entail any additional costs; any savings are anticipated to be minimal (see "Compliance costs for affected persons" below).

 

Compliance costs for affected persons:

For an affected pole owner, there should be no compliance costs as the cost information that is to be provided is already being complied. The rule amendment simply requires that the cost information be presented, if requested, in two sub-categories (costs associated with the electric utility pole space and costs associated with all other pole space, rather than being combined into one cost estimate for all affected pole space). There are no compliance costs for those entities who may request a pole owner to provide the cost information in the two categories.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

The existing rule allows a pole attacher to perform make-ready work needed to accommodate the attacher's pole attachment, and incur the costs of such work, or have the pole owner perform the work and reimburse the pole owner for the costs incurred by the pole owner. The current rule also restricts changes to an electric utility's equipment to be performed only by the electric utility. With the rule amendment, a prospective pole attacher will now be able to obtain cost information for the costs associated with the electric utility performing all make-ready work or just that limited to the electric utility's equipment in the electric utility's pole space. This will allow the prospective pole attacher to determine whether it desires to perform the make-ready work not associated with the electric utility's equipment if it believes it can perform that make-ready work for less than the estimated cost given by the pole owner. Ric Campbell, Commissioner

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Public Service Commission
Administration
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

 

Direct questions regarding this rule to:

Barbara Stroud at the above address, by phone at 801-530-6714, by FAX at 801-530-6796, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

05/31/2006

 

This rule may become effective on:

06/02/2006

 

Authorized by:

Barbara Stroud, Paralegal

 

 

RULE TEXT

R746. Public Service Commission, Administration.

R746-345. Pole Attachments.

R746-345-3. Tariffs and Contracts.

A. Tariff Filings and Standard Contracts -- A pole owner shall submit a tariff and standard contract, or a Statement of Generally Available Terms (SGAT), specifying the rates, terms and conditions for any pole attachment, to the Commission for approval.

1. A pole owner must petition the Commission for any changes or modifications to the rates, terms, or conditions of its tariff, standard contract or SGAT. A petition for change or modification must include a showing why the rate, term or condition is no longer just and reasonable. A change in rates, terms or conditions of an approved tariff, standard contract or SGAT will not become effective unless and until it has been approved by the Commission.

2. The tariff, standard contract or SGAT shall identify all rates, fees, and charges applicable to any pole attachment. The tariff, standard contract, and SGAT shall also include:

a. a description of the permitting process, the inspection process, the joint audit process, including shared scheduling and costs, and any non-recurring fee or charge applicable thereto;

b. emergency access provisions; and

c. any back rent recovery or unauthorized pole attachment fee and any applicable procedures for determining the liability of an attaching entity to pay back rent or any non-recurring fee or charge applicable thereto.

B. Establishing the Pole Attachment Relationship -- The pole attachment relationship shall be established when the pole owner and the attaching entity have executed the approved standard contract, or SGAT, or other Commission-approved contract.

1. Exception -- The pole owner and attaching entity may voluntarily negotiate an alternative contract incorporating some, all, or none of the terms of the standard contract or SGAT. The parties shall submit the negotiated contract to the Commission for approval. In situations in which the pole owner and attaching entity are unable to agree following good faith negotiations, the pole owner or attaching entity may petition the Commission for resolution as provided in Section R746-345-6. Pending resolution by the Commission, the parties shall use the standard contract or SGAT.

C. Make-Ready Work, Timeline and Cost Methodology -- As a part of the application process, the pole owner shall provide the applicant with an estimate of the cost of the make-ready work required and the expected time to complete the make-ready work as provided for in this sub-section. All applications by a potential attacher within a given calendar month shall be counted as a single application for the purposes of calculating the response time to complete the make-ready estimate for the pole owner. The due date for a response to all applications within the calendar month shall be calculated from the date of the last application during that month. As an alternative to all of the time periods allowed for construction below, a pole owner may provide the applicant with an estimated time by which the work could be completed that is different than the standard time periods contained in this rule with an explanation for the anticipated delay. Pole owners must provide this alternative estimate within the estimate timelines provided below. Applications that plan to consider self-building shall inform the pole owner at the time of application that they are considering the self-build option and they would like a two-alternative make-ready bid. In the first alternative, the pole owner would be responsible for all necessary make-ready work. For the second alternative, the pole owner would be responsible only for the make-ready work that is required in the electrical utility space on the poles.

1. For applications up to 20 poles, the pole owner shall respond with either an approval or a rejection within 45 days. At the same time as an approval is given, a completed make-ready estimate must be provided to the applicant explaining what make-ready work must be done, the cost of that work, and the time by which the work would be finished, that is no later than 120 days from receiving an initial deposit payment for the make-ready work.

2. For applications that represent greater than 20 poles, but equal to or less than .5% of the pole owner's poles in Utah, or 300 poles, whichever is lower, the time for the pole owner's approval and make-ready estimate shall be extended to 60 days, and the time for construction will remain at a maximum of 120 days.

3. For applications that represent greater than the number of poles calculated in section 3(2)(C)(2) above, but equal to or less than 5% of the pole owner's poles in Utah, or 3,000 poles, whichever is lower, the time for the approval and make-ready estimate shall be extended to 90 days, and the time for construction will be extended to 180 days.

4. For applications that represent greater than 5% of the pole owner's poles in Utah, or 3,000 poles, whichever is lower, the times for the above activities will be negotiated in good faith. The pole owner shall, within 20 days of the application, inform the applicant of the date by which the pole owner will have the make-ready estimate and make-ready construction time lines prepared for the applicant. If the applicant believes the pole owner is not acting in good faith, it may appeal to the Commission to either resolve the issue of when the make-ready estimate and construction period information should be delivered or to arbitrate the negotiations.

5. If the pole owner rejects any application, the pole owner must state the specific reasons for doing so. Applicants may appeal to the Commission if they do not agree that the pole owner's stated reasons are sufficient grounds for rejection.

6. For all approved applications, the applicant will either accept or reject the make-ready estimate. If it accepts the make-ready estimate and make-ready construction time line, the work must be done by the pole owner on schedule and for the estimated make-ready amount, or less, and the applicant will be billed for actual charges up to the bid amount.

7. Applicants must pay 50% of the make-ready estimate in advance of construction, and pay the remainder in two subsequent installment payments: an additional 25 percent payment when half of the work is done and the balance after the work is completed. Applicants may elect to pay the entire amount up front.

8. If the applicant rejects the make-ready estimate for an approved application for whatever reason, the applicant may, at its own expense, use approved contractors to self-build the required make-ready work subject to the pole owner's inspection. The self-build option is available only for make-ready work outside of the electrical utility space.

D. Pole Attachment Placement -- All new copper cable attachments shall be placed at the lowest level permitted by applicable safety codes. In cases where an existing copper attachment has been placed in a location higher than the minimum height the safety codes require, the pole owner shall determine if the proposed attachment may be safely attached either above or below the existing copper attachment taking account of midspan clearances and potential crossovers. If these attachment locations, above or below the copper cable, comply with the applicable safety code, the attacher may attach to the pole without paying to move the copper cable. The owner of the copper cable may elect to pay the costs of having the cable moved to the lowest position as part of the attachment process, or it may elect to move the cable themselves prior to the attaching entity's attachment. If the copper cable must be moved in order for the attacher to be able to safely make its attachment, the attacher shall pay the costs associated with moving the existing copper cable.

 

KEY: public utilities, rules and procedures, telecommunications, telephone utility regulation

Date of Enactment or Last Substantive Amendment: [February 8], 2006

Notice of Continuation: August 8, 2003

Authorizing, and Implemented or Interpreted Law: 54-4-13