A. Rate Formula -- Any rate based on the rate
formula in this Subsection shall be considered just and reasonable unless
determined otherwise by the Commission. A pole attachment rental rate shall be
based on publicly filed data and must conform to the Federal Communications
Commission's rules and regulations governing pole attachments, except as
modified by this Section. A pole attachment rental rate shall be calculated and
charged as an annual per attachment rental rate for each attachment space used
by an attaching entity. The following formula and presumptions shall be used to
establish pole attachment rates:
1. Formula:
Rate per attachment space = (Space Used x (1/Usable Space) x
Cost of Bare Pole x Carrying Charge Rate)
2. Definitions:
a. "Carrying Charge Rate" means the
percentage of a pole owner's depreciation expense, administrative and general
expenses, maintenance expenses, taxes, rate of return, pro-rated annualized
costs for pole audits or other expenses that are attributable to the pole
owner's investment and management of poles.
b. "Cost of Bare Pole" can be defined as
either "net cost" or "gross cost." "Gross cost" means the original investment,
purchase price, of poles and fixtures, excluding crossarms and appurtenances,
divided by the number of poles represented in the investment amount. "Net cost"
means the original investment, purchase price, of poles and fixtures, excluding
crossarms and appurtenances, less depreciation reserve and deferred federal
income taxes associated with the pole investment, divided by the number of
poles represented in the investment amount. A pole owner may use gross cost
only when its net cost is a negative balance. If using the net or gross cost
results in an unfair or unreasonable outcome, a pole owner or attaching entity
can seek relief from the Commission under
R746-345-5 C.
c. "Unusable Space" means the space on a
utility pole below the usable space including the amount required to set the
depth of the pole.
d. "Usable
Space" means the space on a utility pole above the minimum grade level to the
top of the pole, which includes the space occupied by the pole owner.
3. Rebuttable presumptions:
a. Average pole height equals 37.5
feet.
b. Usable space per pole
equals 13.5 feet.
c. Unusable space
per pole equals 24 feet.
d. Space
used by an attaching entity:
(i) An electric
pole attachment equals 7.5 feet;
(ii) A telecommunications pole attachment
equals 1.0 foot;
(iii) A cable
television pole attachment equals 1.0 foot; and
(iv) An electric, cable, or
telecommunications secondary pole attachment equals 1.0 foot.
(v) A wireless provider's pole attachment
equals not less than 1.0 foot and shall be determined by the amount of space on
the pole that is rendered unusable for other uses, as a result of the
attachment or the associated equipment. The space used by a wireless provider
may be established as an average and included in the pole owner's tariff and
standard contract, or SGAT, pursuant to Section
R746-345-3 of this
Rule.
e. The space used
by a wireless provider:
(i) may not include
any of the length of a vertically placed cable, wire, conduit, antenna, or
other facility unless the vertically placed cable, wire, conduit, antenna, or
other facility prevents another attaching entity from placing a pole attachment
in the usable space of the pole;
(ii) may not exceed the average pole height
established in Subsection
R746-345-5(A)(3)(a).
(iii) In situations in which the pole owner
and wireless provider are unable to agree, following good faith negotiations,
on the space used by the wireless provider as determined in Subsection
R746-345-5(A)(3)(d)(v),
the pole owner or wireless provider may petition the Commission to determine
the footage of space used by the wireless provider as provided in Subsection
R746-345-3(C).
f. The Commission shall
recalculate the rental rate only when it deems necessary. Pole owners or
attaching entities may petition the Commission to reexamine the rental
rate.
4. A pole owner
may not assess a fee or charge in addition to an annual pole attachment rental
rate, including any non-recurring fee or charge described in Subsection
R746-345-3(A)(2),
for any cost included in the calculation of its annual pole attachment rental
rate.
