Communications Allies, Utilities Disagree on Arkansas PSC Pole Attachment Proposals
Telcos support changes to the pricing formula for pole attachments that will bring down rates (see 1508190052), in their replies on Arkansas Public Service Commission proposed changes to attachment rules in docket 15-019-R. Electric companies said they want to make sure the PSC can balance the need for an affordable price for the telcos and not sacrifice pole reliability and safety. The FCC also has a proceeding open to address pole attachment issues on a federal level.
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CTIA and members agree on two things: All pole attachments and attachers must comply with all relevant safety and electrical codes. And all parties must be allowed to attach at a reasonable rate, it said. But parties sharply diverge on the details and the means of implementing these principles, CTIA said. The severity of this divide highlights the need for the PSC to reach a decision that balances the interests of all stakeholders, including the public’s interest in the widest possible availability of broadband services, said the association. Maintaining this balance requires rules that "enhance and promote the shared use of utility poles at reasonable rates in order for broadband to continue its growth throughout Arkansas," CTIA said.
The Arkansas Cable Telecommunications Association, CenturyLink, MCImetro Access Transmission Services, Windstream and others said jointly that the rules advocated by power company owners seek attachment rates, terms and conditions that have been broadly rejected by courts and state legislatures, as well as independent regulators across the country. The PSC shouldn't be swayed by “claims” that cable and communications attachers threaten the safety of pole infrastructure, the joint commenters said. Those claims have been found to be unsubstantiated when reviewed independently, they said. All attachers have a responsibility for maintaining safe plant, they said.
The communications allies said the cable formula will produce the most just and reasonable pole attachment rates and the PSC should adopt that formula. Additional pricing formulas as discussed by the electric cooperatives are “flawed, outlier approaches,” the filing said. The electric cooperatives point to a small minority of pricing approaches that increase the rents paid by cable and communications attachers, it said. Those formulas result in huge rent increases over the cable formula rates, it said.
Southwestern Electric Power Co. (SWEPCO) mostly supported the PSC’s proposed changes, with minor edits. The commission achieved an equitable balance of the need of attaching parties to construct facilities in the most cost efficient manner while still ensuring that pole reliability and safety are not sacrificed, SWEPCO said. But if the commission adopts the recommendations of the Arkansas Cable Telecommunications Association, CTIA and PCIA, SWEPCO said the state would see “degradation of safety and reliability and under recovery or pole attachment expenses causing Arkansas electric ratepayers to carry a heavier burden for maintaining pole plant that serves all.” The company said those commenters seek to diminish safeguards developed by the commission and push costs onto the bills of the electric ratepayers.