20030204Order No 29188.pdf

Office of the Secretary
Service Date
February 4, 2003
BEFORE THE IDAHO PUBLIC UTILITIES CO MMISSI 0 N
IN THE MATTER OF THE COMPLAINT
CONCERNING QWEST CORPORATION'
APPLICATION AND INTERPRETATION OF
ITS SPECIAL FACILITIES CHARGE
CONTAINED IN ITS BASIC LOCAL
EXCHANGE TARIFF
CASE NO. QWE-O3-
ORDER NO. 29188
On October 30, 2002, Richard Homer filed an infonnal complaint against Qwest
Corporation regarding the utility s assessment of a "special facilities" charge. Mr. Homer is
constructing seven apartment buildings, each containing six units, in Rexburg, Idaho. Qwest
charged Mr. Homer $3 528 to install new facilities to serve the apartments. In response to the
complaint, Qwest indicated that it had imposed the special facilities charge in accordance with its
Basic Local Exchange Tariff, Section 4, page 4, ~ 4.1. Given the parties' inability to resolve
the complaint, the Commission issues this Order.
THE COMPLAINT
As previously mentioned, Mr. Homer is constructing seven apartment buildings in
Rexburg. He requested that Qwest provide the necessary facilities to serve the 42 apartment
units. The apartments are located in an area that was previously zoned for single-family
residential dwellings. Consequently, the capacity of the existing telephone cable was deemed
insufficient. To serve these apartments, Qwest installed 1400 feet of new 100-pair cable.
Relying upon its "special facilities tariff " Qwest charged Mr. Homer $3 528 for installing the
new facilities. Qwest maintained that the tariff allows it to recoup the cost of the 100-pair area
cable because the area in question was originally cabled for single-family residential units. Mr.
Homer paid the charge and subsequently complained that the charge was inappropriate.
QWEST'S ANSWER
In response to Mr. Homer s complaint, Qwest argued that the development of multi-
unit apartment buildings in an area originally cabled for residential use makes the upgraded
facilities "special." In particular, Qwest relied upon the special facilities charge language in its
Basic Local Exchange Tariff. Section 4 of the tariff (Special Assemblies, Facilities and Finishes
of Equipment) provides that "Rates and charges in connection with special assemblies, special
ORDER NO. 29188
facilities and special finishes of equipment will be based on the cost involved in each individual
case.Page 4, ~ 4.1. Qwest maintained that constructing apartment buildings in an area
originally cabled for single-family service requires the installation of "special facilities" to meet
the unique demands of Mr. Homer. The Company stated that its current practice is to rely on the
special facilities tariff when Qwest is required to increase its cabling capacity caused by above-
average growth in Rexburg, especially in areas adjacent to Brigham Young University-Idaho
(fonnerly Ricks College). In reviewing this complaint, Qwest replied that "nearly all" of the
new apartment complexes in "this area of Rexburg. . .were billed for special facility charges
calculated the same way the charges for Mr. Homer were prepared." Qwest Response at 1.
Staff disagreed with Qwest's application of the "special facilities" tariff in this
instance. Given this dispute, the Staff and the Company requested that the complaint be brought
before the Commission for resolution. Staff also recommended that Qwest identify and refund
the "special facility" charges for other similarly situated customers in Rexburg.
DISCUSSION
Having reviewed the complaint, Qwest's response and the tariff language in question
we agree with the Commission Staff that the facts of this case do not warrant the imposition of
special facilities charges. We find that there is nothing "uncommon" or "special" about the need
to increase cable capacity for areas experiencing above-average growth.Although such
conversions may not be expected, we do not believe that this circumstance warrants a special
facilities charge. The need to update or increase facilities is a nonnal cost of doing business and
necessary to accommodate growing communities. Consequently, we find it is inappropriate to
assess special facility charges to Mr. Homer in this instance.
The Staff also recommended that the Company be directed to refund other special
facilities charges to other builders in the Rexburg area that are similarly situated. Qwest did not
object and subsequently notified the Staff of two other instances where refunds were appropriate.
Taken together, Qwest shall provide refunds to: Mr. Homer in the amount of $3 528 for job No.
C230204; to Westates Holding, LLC in the amount of $8 608 for job No. C130236; and Main
Street Station, LP in the amount of $3 648 for job No. C230178. All these projects are located in
Rexburg.
ORDER NO. 29188
ORDER
IT IS HEREBY ORDERED that the complaint and request for refund filed by
Richard Homer against Qwest Corporation is granted. Qwest shall provide refunds to the three
builders as identified in the body of this Order.
IT IS FURTHER ORDERED that Qwest's application of special facility charges set
out in its Basic Local Exchange Tariff, Section 4, page 4 , ~ 4.1 confonn to the Commission
holding in this Order.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. QWE-03-
may petition for reconsideration within twenty-one (21) days of the service date of this Order
with regard to any matter decided in this Order or in interlocutory Orders previously issued in
this Case No. QWE-03-Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code ~ 61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3 J
day of January 2003.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Commission Secretary
vldJO:QWET0301
ORDER NO. 29188