20031118Revised Exhibit 27 Buckley.pdf

TO E L
~~,HECEIYEO FILED
2003rmv f 8 Pt"1 4:
101 S. Capitol Boulevard. Suite 1900
Boise, Idaho 83702
main 208.389.9000
fax [phone]
ATTORNEYS AT LAW
FUbUC
UTlLlT!ES Cor-U1ISSION
www.stoel.com
November 18, 2003
MARY S. HOBSON
Direct [phone]
mshobson(1!Jstoel.com
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington
O. Box 83720
Boise, ill 83702-5983
Re:Docket No. QWE-Ol-
Dear Ms. Jewell:
Enclosed for filing with this Commission are an original and nine (9) copies of the revised
Exhibit 27 to the Direct Testimony of Dick Buckley which were inadvertently mislabeled in the
November 12 2003, filing of Mr. Buckley s testimony. I am also including a disc containing the
electronic version ofthe Direct Testimony and the exhibits for the court reporter.
If you have any questions, please contact me. Thank you for your cooperation in this matter.
Very truly yours
AIVUj /ltk---
Mary S. .aobson
:blg
. Enclosurescc: Service List wi enclosures
Oregon
Washington
California
U I a h
Boise-l 64480.1 0029164-00072 I d a h 0
RECEIVEDill r'"'
20U3 NOV 18 P~I 4: 04
;-;0 Hi
UTILITiES COMlilSSION
LOOP MODULE
VERSION 2.
Default Values
Idaho
Qwest Corporation
October 31 2003
Exhibit No. 27
Case No. QWE-OI-
Dick Buckley, Qwest Corporation
Page I of 18
Boise-164243.2 0029164-00072
LOOP MODULE DEFAULT VALUES
Table of Contents
Section Pae:e
I. Overview.....
................................. ........................................................................ ..... ..
2. Distribution FilL........
........ """""" """ """""" """""""'" ............ ....... """""""'" .......
3. Feeder Fill.....................................
..... ...:.................................................... ........:. .......
4. Average Drop Lengths.................. ........... ............................................................ .......
5. Placement Costs...............
"""""'" .................................................. .................. ..........
6. Placement Percentages.. ................ ......... """'"
................................ ......... ........... ........
7. Sharing Percentages..
""""""""" ..................................... """""""""""" ...................
8. Network Component Prices.........
.......................... """"""""""'" .............. ........ ........
1 Buried Copper Cable and Stubs ....................................................................
8.2 Underground Copper Cable and Stubs.......................................................... 1 0
8.3 Building Copper Cable and Inside Terminals ...............................................
8.4 Aerial Copper Cable and Terminal...............................................................
5 Buried Fiber Cable..........
....... ............................................................ .......... .
6 Underground Fiber Cable................... ....................................................... ....
7 Building Fiber Cable.......
........................................................................ .... ..
8 Drop Wire, NID and Placement....................................................................
9 Serving Area Interfaces and Terminals.........................................................
10 C Rural Wire... ......
....... """"""""" ......... ........... ............ .......... ......... ......... .
11 Fiber Optic Equipment................................................................................
9. Additional Options....................... ....... ................ ............................. ......................... ..
Boise-164243.2 0029164-00072
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 2 of 18
1. Overview
This section of the Loop Module User Manual includes descriptions of the inputs available to the users and
the default values assigned to them. Also included is the source of the data that was used to establish these
values. The data is based on the TELRIC economic guidelines. Thus, where current activities are reflective
of what would be experienced within the TELRIC structure, that information will be included. Conversely,
if the forward-looking equipment/activities/designs are not being implemented on a widespread basissubject matter experts were consulted to develop an estimate of the appropriate values.
As new or additional data is gathered it will be included in this document.
Boise-164243.20029164-00072
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 3 of 18
2. Distribution Fill
Description: The data included under the distribution fill header is used to calculate the divisor used in
each distribution design. The two values are for Idle Dedicated and Additional Lines percentages. The
calculation is the design number of housing units plus the net of the idle dedicated percent and the
additional lines percent. For example 400 homes plus (12% additional minus 4% idle dedicated) or 400
homes plus 8% or 432 working lines. The investment for the distribution area will then be divided by the
432 working lines. In addition the user has the ability to set utilization levels that will impact the pairs per
site routine. Different fills will adjust where cables taper (e.g. 50 pair spliced to a 25 pair). The result is
differing footages of the various cables as the total sheath footage will remain the same. The Idle Dedicated
and Additional Line percentages can only be edited in the Loop Module. They are not in the ICM edit
screens.
Default values:
Distribution Fill
Idle Dedicated
Additional Lines
Percenta2es
00%
15.75%
Density Group Specific
Percentages
DGI 50%
DG2 50%
DG3 33%
DG4 33%
DG5 50%
Support: The idle dedicated percentage is calculated by subtracting the additional lines from working and
assigned lines, then subtracting working lines from assigned lines and dividing the result by the assigned
lines. This information is provided by network from the Utilize database. The additional line percentage is
developed from data out of the 1FT database. The 1FT reports show in-service quantities for products and
services. The default input fills are based on Qwest network guidelines of two pairs per site in multi-family
and low density and three pairs per site for single family residential.
Boise-164243.20029164-00072
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 4 of 18
3. Feeder Fill
Description: The feeder fill is the factor by which feeder cable capacity is increased above the size needed
to serve a given quantity of demand in order to provide spare pairs for breakage, line administration, andsome amount of growth.
Default values:
Feeder Fill for Coooer Cable
Percent
80%
Support: The effective fill factor that is generated is typically less than the corresponding input feeder fill
factor. This is due to discrete cable sizes that will result in a selected cable providing more pairs than the
calculation requires.
4. A vera!!e Drop Len!!ths
Description: The drop wire is the facility that extends from the nearest distribution terminal to the
customer s premises. The lengths for that facility are broken out by aerial versus buried and by distribution
density group. Only density groups 3, 4 and 5 use drops. Density groups 1 and 2 would utilize an entrancefacility as opposed to a drop wire.
Default values:
A\erat!:e Aerial and Buried Droo Len!!:ths
Aerial Drop Length - Density Group 3
Aerial Drop Length - Density Group 4
Aerial Drop Length - Density Group 5
Buried Drop Length - Density Group 3
Buried Drop Length - Density Group 4
Buried Drop Length - Density Group 5
Len!!:ths
200
300
200
300
Support: The drop lengths are a function of the lot size. These are Qwest wide default lengths. Whenapplied to the state specific mix of density groups they produce a statewide average drop length ofapproximately 110 to 120 feet. Surveys of existing drops in New Mexico, North Dakota, Minnesota andWyoming have produced statewide averages from 150 to 180 feet. These averages are conservative as they
exclude drops in excess of a certain length.
Boise-164243.20029164-00072
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 5 of 18
5. Placement Costs
Description: The placement costs are the contracted costs for various activities involving placement of
buried plant. The placement costs are added to the cost of buried cable on a per cable foot basis. The costadded is a weighted average of the costs of each activity. This weighting is unique to each distribution
density group and to urban and rural feeder. The weightings are discussed below in the Placement
Percentages section.
Default values:
Placement Costs
2" Directional Bore
4" Directional Bore
Cut & Restore Asphalt
Lay Cable
Plow Cable
Plow Cable - Rocky
Missile
Restore Sod / Gravel
Fiber Trench
Hydro Mulch
Cut & Restore Concrete
Trench Cable - Hand
Trench Cable - Rocky
Trench Cable - Standard
Costs
$11.67
$15.
$13.
$0.
$1.70
$14.
$11.28
$3.
$2.
$4.
$12.43
$5.
$15.10
$1.
Support: The costs for the various activities are drawn from the latest contracts the Network department
has for placement of buried plant. Where a state has multiple contractors the number is a weighted averageof the different prices. The weighting is based on the number of lines in the areas served by eachcontractor. Where there are variations on a single activity (e.g. plow - 24", 30' & 36"), those prices are
weighted together based on their occurrence.
Boise-164243.2 0029164-00072
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 6 of 18
6. Placement Percental!es
Description: The placement percentages are used to weight together the various activities involving
placement of buried plant. The cost added to the buried cable is based on this weighting. The weighting is
unique to each distribution density group and to urban and rural feeder.
Default values:
Placement Percenta!!es - Distribution
Trench & Backfill
Rocky Trench
Plow
Rocky Plow
Cut & Restore Concrete
Hand Dig Trench
Bore Cable
Cut & Restore Asphalt
Cut & Restore Sod
Hydro Mulch
DGI DG2 DG3 DG4 DGS
20%25%25%30%
28%91%
15%10%
20%30%45%20%
20%10%10%
15%15%
Placement Percentae:es - Feeder
Trench & Backfill
Rocky Trench
Plow
Rocky Plow
Cut & Restore Concrete
Hand Dig Trench
Bore Cab Ie
Cut & Restore Asphalt
Cut & Restore Sod
Hydro Mulch
Dr ban
30%
15%
10%
20%
15%
Rural
91%
Support: The activity percentages are a mix of placement methods that would be used to replace the
existing network as well as grow it during the current feeder planning period. The percentages are based onthe growth rates and interviews with outside plant engineers who were responsible for cable rehab work.
The question to the engineers was phrased to address the type of activities that they would expect to use
when cable placement is done in mature, existing areas. Data was also drawn from Qwest experience inplacing plant for the Broadband trial in Omaha, NE. In addition, a citywide CATV rebuild in one of the
Qwest states provided support to the utilization of boring in mature areas.
Boise-164243.2 0029164-00072
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 7 of 18
7. Sharin2: Percenta2:es
Description: The sharing percentages give recognition to the fact that there will be a reduction in placing
costs due to either trench provided by a land developer or multiple facility providers using the same polestrenches or conduit systems. The impact of these two scenarios is decidedly different. With trench
provided by a developer, the only cost experienced by the facility provider is the cost of laying the cable in
the open trench. With multiple facility providers using a common structure, the question of sharing
becomes more complicated. Poles for instance, may be jointly owned or they may be accessed through the
use of attachment fees. One constitutes a capital investment, while the other is an annual expense..
Default values:
Sharin!! Percental!es
Aerial- Poles
Underground- Conduit
Buried - Urban Feeder
Buried - Rural Feeder
Buried - Distnlmtion Density Group
Buried - Distnlmtion Density Group 2
Buried - Distribution Density Group 3
Buried - Distribution Density Group 4
Buried - Distribution Density Group 5
Percental!e
50%
20%
20%
20%
20%
20%
20%
20%
Support: The sharing percentages are an estimate of the portion of the structure cost that will be avoided
through a mix of jointly owned structure and developer provided trenching. Certain work activities, such as
actually laying a cable in the trench would not be reduced or shared, even if there are multiple facilities in a
trench. The percentages are based on historical data, access line growth rates, and the opinions of outside
plant subject matter experts.
Boise-164243.20029164-00072
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 8 of 18
8. Network Component Prices
Description: The sections below detail the various components that are used in each of the network
categories (cables, terminals, DLC, etc.
1 Buried Copper Cable and Stubs
Description: The cost per foot for buried copper cables, including material, supply, engineering, and
splicing. Placing for buried is discussed in sections 6 and 7. The cable stub costs are on a per cable basis
for a 30 foot stub.
Default values:
Buried Comer Cables & Stubs
25 pair - 22 gauge
50 pair - 22 gauge
100 pair - 22 gauge
200 pair - 22 gauge
300 pair - 22 gauge
400 pair - 22 gauge
600 pair - 22 gauge
25 pair - 24 gauge
50 pair - 24 gauge
100 pair - 24 gauge
200 pair - 24 gauge
300 pair - 24 gauge
400 pair - 24 gauge
600 pair - 24 gauge
900 pair - 24 gauge
1200 pair - 24 gauge
1800 pair - 24 gauge
600 pair - 26 gauge
900 pair - 26 gauge
1200 pair - 26 gauge
1800 pair - 26 gauge
50 pair- 24 gauge - stub
100 pair - 24 gauge - stub
300 pair - 24 gauge - stub
400 pair - 24 gauge - stub
600 pair - 24 gauge - stub
900 pair - 24 gauge - stub
Cost
$0.
$1.17
$1.66
$2.
$3.
$4.
$7.
$0.
$1.00
$1.37
$2.12
$2.
$3.
$5.
$7.
$9.
$14.42
$5.26
$7.
$9.
$14.42
$174.34
$197.
$340.
$402.17
$546.46
$673.
Support: The cable material costs are provided by the Qwest network organization. They are based on the
latest prices Qwest is paying for these components.
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 9 of 18
Boise-164243.20029164-00072
2 Under2round Copper Cable and Stubs
Description: The cost per foot for underground copper cables, including material, supply, engineering,
placing and splicing. Underground structure is discussed in sections 3. The cable stub costs are on a per
cable basis for a 30 foot stub.
Default values:
UndereroundCoooer Cables & Stubs
25 pair - 22 gauge
25 pair - 24 gauge
50 pair - 22 gauge
100 pair - 22 gauge
200 pair - 22 gauge
300 pair - 22 gauge
400 pair - 22 gauge
50 pair - 24 gauge
100 pair - 24 gauge
200 pair - 24 gauge
300 pair - 24 gauge
400 pair - 24 gauge
600 pair - 24 gauge
900 pair - 24 gauge
1200 pair - 24 gauge
1800 pair - 24 gauge
600 pair - 26 gauge
900 pair - 26 gauge
1200 pair - 26 gauge
1800 pair - 26 gauge
2400 pair - 26 gauge
3000 pair - 26 gauge
3600 pair - 26 gauge
4200 pair - 26 gauge
900 pair - 24 gauge - stub
Cost
$1.65
$1.51
$1.92
$2.
$3.41
$4.
$5.
$1.75
$2.12
$2.
$3.
$4.47
$6.12
$8.15
$9.
$15.
$5.14
$6.
$8.
$11.31
$14.
$17.40
$20.
$31.16
$323.48
Support: The cable material costs are provided by the Qwest network organization. They are based on the
latest prices Qwest is paying for these components.
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 10 of 18
Boise-164243.2 0029164-00072
BoUdin!! Copper Cable and Inside Terminals
Description: The cost per foot for building copper cables, including material, supply, engineering, placing
and splicing. The inside terminals and connecting block costs are on a per item basis.
Default values:
Buildine: Coooer Cables & Inside Terminals
25 pair - 24 gauge
50 pair - 24 gauge
100 pair - 24 gauge
600 pair - 24 gauge
900 pair - 24 gauge
50 pair - Inside Terminal
100 pair - Inside Terminal
600 pair - Inside Terminal
900 pair - Inside Terminal
50 pair - Connecting Block
Cost
$1.98
$2.
$2.
$6.
$9.14
$649.
$659.
631.39
414.49
$89.
Support: The cable and terminal material costs are provided by the Qwest network organization. They are
based on the latest prices Qwest is paying for these components.
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 11 of 18
Boise-164243.2 0029164-00072
8.4 Aerial Copper Cable and Terminal
Description: The cost per foot for aerial copper cables, including material, supply, engineering, placing and
splicing. The terminal costs are on a per item basis.
Default values:
Aerial Copper Cables & Terminal
25 pair - 24 gauge
12 pair teTITlinal
50 pair - 22 gauge
100 pair - 22 gauge
200 pair - 22 gauge
300 pair - 22 gauge
400 pair - 22 gauge
600 pair - 22 gauge
900 pair - 22 gauge
50 pair - 24 gauge
100 pair - 24 gauge
200 pair - 24 gauge
300 pair - 24 gauge
400 pair - 24 gauge
600 pair - 24 gauge
900 pair - 24 gauge
Cost
$1.20
$91.81
$2.
$3.37
$4.
$5.
$6.27
$8.
$11.50
$1.35
$1.90
$2.
$4.48
$5.
$6.
$8.
Support: The cable and terminal material costs are provided by the Qwest network organization. They are
based on the latest prices Qwest is paying for these components.
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 12 of 18
Boise-164243.2 0029164-00072
5 Buried Fiber Cable
Description: The cost per foot for buried fiber cables, including material, supply, engineering, and splicing.
Placing for buried cables is discussed in sections 6 and 7.
Default values:
Buried Fiber Cables
2 fiber cable
4 fiber cable
6 fiber cable
12 fiber cable
24 fiber cable
36 fiber cable
48 fiber cable
72 fiber cable
96 fiber cable
144 fiber cable
216 fiber cable
Cost
$1.68
$1.73
$1.77
$1.92
$2.
$2.
$2.
$3.
$4.
$5.
$7.
Support: The cable and terminal material costs are provided by the Qwest network organization. They are
based on the latest prices Qwest is paying for these components.
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 13 of 18
Boise-164243.2 0029164-00072
6 Unden!roond Fiber Cable
Description: The cost per foot for underground fiber cables, including material, supply, engineering,
placing, and splicing. Underground structure is discussed in sections
Default values:
Under!!round Fiber Cables
2 fiber cable
4 fiber cable
6 fiber cab Ie
12 fiber cable
24 fiber cable
36 fiber cable
48 fiber cable
72 fiber cable
% fiber cab Ie
144 fiber cable
216 fiber cable
Cost
$1.06
$1.10
$1.14
$1.25
$1.49
$1.
$1.92
$2.40
$2.
$3.
$5.
Support: The cable material costs are provided by the Qwest network organization. They are based on the
latest prices Qwest is paying for these components.
7 BoUdinl! Fiber Cable
Description: The cost per foot for building fiber cables, including material, supply, engineering, placing,
and splicing. No structure cost is included, as the duct or raceway would be provided, by the building
owner.
Default values:
Bondin!! Fiber Cable
12 fiber cable
24 fiber cable
Costs
$1.92
$2.15
Support: The cable material costs are provided by the Qwest network organization. They are based on the
latest prices Qwest is paying for these components.
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 14 of 18
Boise-164243.2 0029164-00072
8 Drop Wire. NID and Placement
Description: The cost per foot for the drop wire, cost per foot for the placing, the labor for the placing of
the protector and the termination of the wires, the cost for the protector material, and the trip or
mobilization charge.
Default values:
DroD Wire
Costs
Buried 2 pair Drop -
Placing per foot under 100 feet
Placing per foot over 100 feet
Protector & Temrination Labor
Drop material
Protector material
Mobilization
Buried 3 pair Drop -
Placing per foot under 100 feet
Placing per foot over 100 feet
Protector & Temrination Labor
Drop material
Protector material
Mobilization
Aerial 2 pair Drop -
Placement per drop
Protector & Temrination Labor
Drop material
Protector material
$0.
$0.
$31.92
$0.
$14.
$33.
$0.
$0.
$31.92
$0.11
$14.
$33.35
$61.47
$31.92
$0.28
$14.
Support: The drop material and placement costs are from the latest contracts Qwest has with outside
vendors for the provision of drop facilities. The mobilization charge is divided by 14 in the calculation of
buried drop costs to reflect the placement of multiple drops per visit as would be likely in a scorched node
or network rebuild scenario.
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 15 of 18
Boise-164243.20029164-00072
9 Servine: Area Interfaces and Terminals
Description: The cost per item for Serving Area Interfaces (SAI) .or cross-connect boxes and distribution
terminals or pedestals. The SAI is the connection point between feeder cables and distribution cables and
provides flexibility in assignment of pairs. The terminals are the connection point between distribution
cables and the drops.
Default values:
SAIs and Terminals
10 pair pedes tal tenninal
12 pair encapsulated splice tenninal
600 pair SAI
1200 pair SAI
l800pairSAI
2700 pair SAI
Splice Closure
Costs
$69.42
$55.
259.
424.51
$4,722.47
129.
$38.36
Support: The SAI and terminal costs are provided by the Qwest network organization. They are based on
the latest prices Qwest is paying for these components.
10 C Rural Wire
Description: The cost per wire foot for C-Rural Wire, including material, supply, engineering, and placing..
C Wire is a high tensile, single pair facility that is used in low density or rural applications.
Default values:
C- Rural Wire
1 pair wire
Costs
$0.
Support: The wire material costs are provided by the Qwest network organization. They are based on the
latest prices Qwest is paying for these components.
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 16 of 18
Boise-164243.20029164-00072
11 Fiber Optic Equipment
Description: The cost for central office and remote channel and terminal equipment for the fiber based
Digital Loop Carrier systems. The costs include material, supply and installation.
Default values:
Fiber OOOc Eauimnent
Costs
1344 Line Remote Tenninals
CO. Tenninal
Remote Tenninal
Quad POTS Channel Unit
Quad ISDN Channel Unit
$16 850.43
$84 254.
$277.
$928.
672 Line Remote Terminals
CO. Tenninal
Remote Terminal
Quad POTS Channel Unit
Quad ISDN Channel Unit
$8,425.
$54 732.
$277.88
$928.
32 Line Remote Terminals
CO. Tenninal (HDT)
Remote Terminal
Quad POTS CO. Channel Unit
ISDN CO. Channel Unit
Quad POTS Remote Channel Unit
ISDN Remote Channel Unit
$29 773.
$23 232.
$256.
$311.07
$289.
$311.06
96 Line Remote Terminals
CO. Tenninall (1st RT)
CO. Tenninal2 (Additional RTs)
Remote Terminal
Quad POTS Channel Unit
Quad ISDN Channel Unit
678.14
$4,291.04
$31 649.
$157.
$863.
192 Line Remote Terminals
CO. Tenninall (1st RT)
CO. Tenninal2 (Additional RTs)
Remote Terminal
Quad POTS Channel Unit
Quad ISDN Channel Unit
$10 969.18
$4,291.04
$32 288.
$157.
$863.
Support: The system costs are provided by the Qwest network organization. They are based on the latest
prices Qwest is paying for these components.
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 17 of 18
Boise-164243.20029164-00072
9. Additional Options
Description: There are several options on the fIrst screen, which are essentially driven by the type of study
being done. For instance, the Process Group option allows the user to select All Wire Centers, Specific
Wire Centers or one of three MSA zone wire center groups. Two items, though, are Qwest defaults that are
used across all studies. These selections are Feeder Model and Pairs Per Site. The Feeder Model selection
allows the user to select the 12 kilofoot standard shift from physical copper to a Digital Loop Carrier or
build a custom feeder model. The Pairs Per Site allows the user to select the number of pairs engineered to
each living unit.
Default values:
Feeder Model - 12 kilofeet
Pairs Per Site - Engineering Standard (2 pairs for DGl, 2 & 5; 3 pairs for DG3 & 4)
Support: The 12 kilofoot crossover is based on guidelines from the Qwest network group. The objective
is to minimize facility cost as well as assure that all plant will support both voice and advanced (xDSL)
services. The Engineering Standard Pairs Per Site selection is supported, once again, by network guidelines
to furnish enough facilities to allow for timely resporise to customer requests for service, while minimizing
construction expenditures.
Exhibit No. 27
Case No. QWE-Ol-
Dick Buckley, Qwest Corporation
Page 18 of 18
Boise-164243.20029164-00072