20021113Qwest's Answer.pdf

Boise, Idaho
November 13, 2002
Wayne Hart
Carol Cooper
Idaho Public Utilities Commission
O. Box 83720
Boise, Idaho 83720-0074
RE: QWEST QUOTATION FOR SPECIAL FACILITY CHARGES TO
RICHARD HORNER FOR SERVICE TO APPLEWOOD APARTMENTS IN
REXBURG, IDAHO
Dear Wayne
At the request of Debbie Drew I have reviewed the complaint of Mr. Homer regarding
provision of service to his new apartment complex in Rexburg, Idaho. Based upon this
review and my discussion with the Qwest engineer who prepared the quotation I believe
the charges requested from Mr. Homer ($3 528) have been quoted correctly and
consistently with current practice. I would like to provide you some background
information to assist in your investigation.
Mr. Horner s development is a result ofrapid expansion of housing for college students
associated with Rick's Colleges recent change to a four year institution. In Mr. Homer
case a home (with current service) with a grandiose back yard is having the back yard
area converted to commercial use to include seven 6-plex apartment units. This
development is in the middle of a 20 year old single-family-home residential subdivision.
To provide service to the forty-two apartments Qwest is installing a new 100 pair aerial
cable for 1400 feet from a service pedestal with adequate facilities to handle an expected
demand of 63 lines (42 home units with 1.5 lines each). The use of the 100 pair cable is
caused by ordering a standard cable size (ie. 50 pair and 100 pair choices) and would, of
course, provide for unusual or unexpected future service needs to the area.
Qwest could not have planned for such an extreme demand for service when it originally
engineered and placed its cabling to serve this area of Rexburg. Mr. Homer has indicated
that there are several other multifamily developments which have sprung up around the
one he is developing. I have confirmed with the Qwest engineer in the area that nearly all
of these apartments were billed for special facility charges calculated the same way the
charges for Mr. Homer were prepared.
Qwest is relying upon its Basic Local Exchange Tariff Section Section 4, page 4
paragraph 4.1 for this quotation. It says: "Rates and charges in connection with special
assemblies, special facilities and special finishes of equipment will be based on the cost
involved in each individual case." In this case, the building of commercial apartments in
an area originally cabled for single-family service requires installation of special facilities
for the unique demands of this customer. In its billing quotation to Mr. Horner, Qwest is
only charging for the placement of the new cable. The actual cost of the aerial cable is
not being billed to Mr. Homer as it is considered a reusable facility for the future. In fact
Qwest's total charges for the engineering, material and placement of the cable to
Applewood Apartments is $6 303. Qwest believes this approach strikes an appropriate
balance between it investing in providing new service to this commercial application and
a customer contribution based upon its impact on the existing network.
The Company engineer indicates that the relatively small financial impact to provide
telephone service to new apartments that are placed in locations such as Mr. Horner
typically cause little or no concern to developers. Qwest's engineer is moving forward
with the final drafting of the job and ordering material for the Applewood Apartments
with the understanding that Mr. Homer will be willing to pay 'under protest' the Qwest-
quoted charges. If Staff agrees that the quoted charges are reasonable and consistent with
our tariff, no refund will be made by Qwest. If Staff does not agree that the charges are
valid, Qwest requests that this complaint be brought to the Commissioners for formal
determination through a decision meeting agenda item.
If I can be of further assistance in this matter, please call me on 385-8666.
Sincerely,
John Souba
Mgr. Regulatory Affairs
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