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HomeMy WebLinkAbout20021231Qwest Proposal.pdfJim Schmit Idaho Vice President 999 Main Street. 11 th Roor Boise. Idaho 83702 December 30, 2002 jschmit!11)qwestcom 208 385 2628 2083858026 fax Idaho Public Utilities Commission Q W e s t~ Office of the Secretary RECEIVED VIA HAND DELIVERY Ms. Jean D. Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Boise, ill 83702-5983 rr. c-. -; . ';",? D!:.v tJ 1 Luv~ Bois3J; idahO RE: PROPOSAL OF QWEST CORPORATION REQUESTING APPROVAL OF TECHNOLOGY PLUS PHASE ill (TECH ill) PROGRAM Dear Ms. Jewell: By this letter, Qwest presents its "Tech ill" proposal for disposition of funds generated by Qwest's predecessor s Revenue Sharing Plan. This proposal is consistent with previous directives of the Commission that en~ouraged consideration of infrastructure improvement projects. In Commission Order 24267 the Commission stated the following on page 2: The Commission invites interested persons to submit written comments on alternative uses for sharing revenue subject to the Commission disposition. In particular, the Commission invites comments on usingsharing revenues to implement improvements to the public telecommunications network. Such comments should clearly identify the network improvement(s) and be reasonably related to the amount of funds available for disposition. Qwest (then U S WEST Communications) responded to the above in 1992 and ultimately, the Commission approved a three-year projectca1led "Technology Plus Phase IT' ("Tech IT'). Tech n matched Commission-sponsored Revenue Sharing monies and Qwest investment to provide digital carrier and fiber optic cable installation in 45 Qwest southern Idaho wire centers to enable 9600 bps transmission speeds to at least 60% of the lines in those exchanges. The project was completed in 1995, following on the heels of Boise-151061.1 0029164-00033 the Technology Plus project, which had resulted in the installation of digital switching systems in 52 Qwest wire centers in southern Idaho. This Tech ill proposal builds on this history of joint cooperation in improving the telecommunications network in Idaho. The Commission has stated several times that the use of Revenue Sharing proceeds must benefit Qwest's Title 61 customer base. The Tech ill proposal will do exactly that. Qwest proposes a three-year program for a broad-based and extensive servIce improvement program for the benefit of Qwest's southern Idaho customers. This program will focus on service improvement in the areas in Qwest's service territory with the highest trouble rates. Detailed engineering has not yet been completed to identify all of the wire centers and' the exact pieces of Qwest's network infrastructure for inclusion in the service improvement program. However, the primary types of infrast:i:ucture improvements hav~ been identified and are detailed later in this proposal. Upon approval of the Tech ill program, the actual work list to be included for each successive quarter will be provided, in advance, for Commission review. Qwest requests that $4 million in Commission-held Revenue Sharing funds be earmarked for this proposal. Qwest will sponsor a matching amount of $4 million to create an $8 million dollar local exchange Tech ill program. The $8 million would be used over the three-year program through expending no more than $3 million in 2003, $3 million in 2004 and the balance in 2005. Qwest and Commission would equally contribute to each year's expenditures. Qwest requests the Commission remit each year s Revenue Sharing contribution to the Company in advance i., at the beginning of each construction year. Qwest also reques~ any monies not spent in a given year be rolled over to the following year, with the full project completing in 2005. Before describing the proposed Tech ill project in more detail, it is worth noting that the commitment by Qwest of funds for this project was carefully considered and debated at the highest levels in the Company. With capital markets and infrastructure budgets at Boise-151061.1 0029164-00033 Qwest--and across the telecom industry--so heavily constrained, Qwest wishes the Commission to recognize that the commitment to an incremental increase to the Idaho network budget of $4 million in southern Idaho is a major undertaking that signal' Qwest's commitment to Idaho and flfIDly obligates the Company to this program for the next three years. This project builds on the solid foundation found in Qwest's current telecommunications network in southern Idaho. The Tech ill program will eliminate a significant amount of local exchange cabling and transmission systems that contribute to above-average repair reports and service problems. Specifically, the following four components are currently under consideration to be included in the Tech ill program: 1) Replacement of lead sheath cabling in the local exchange network in selected wire centers 2) Replacement or rehabilitation of air core cabling in' the local exchange network in selected wire centers 3) Replacement of control points/access points (i.e. terminal boxes or enclosures) in selected wire centers 4) Replacement of Anaconda analog carrier systems across southern Idaho Rationale for identifying these four project components follow in the next several paragraphs. Lead Sheath and Air Core Cabling ----- ---_u - - Simple ~ging may cause lead cable sheath to crystallize and crack. In addition, rodents and squirrels, which seem to delight in chewing on the lead sheath , can damage the lead sheath. Air core cables are typically used in aerial plant because of their ability to withstand oppressive heat. If the sheath of such cable is pierced, water may enter the cable, allowing electrolysis to slowly erode the~ cable pairs, and ultimately causing cable failure. The proposed Tech ill program will replace older generation air core cable with a newer generation that has a superior plastic covering over a steel sheath that surrounds the cable pairs , making the cable much more resistant to water and rodents. Boise-151061.1 0029164-00033 . . In Qwest's network in southern Idaho lead sheathed or air core cables are connected to digital central offices that provide an array of modem services. Customers who are served by these cabling facilities generally experience a higher level of repair activity than those served by later generation cabling facilities. These improvements come from new materials and, in many underground applications, through use of gel-filled cables which are highly resistant to water intrusion. The proposed Tech ill program will impact thousands of Qwest customers who, as a result of the program, will be conneCted by current-generation cabling to their serving digital central office. Control Points and Access Points Control points and access points are terminal boxes in the distribution plant at which cables are direct-spliced inside an enclosure. When technicians need to make rearrangements to the pairs within these terminal boxes to perform repair/installation work, they are more likely to cause additional cable trouble due to disturbance of the deteriorated insulation covering the conductors. When replaced with updated sealed enclosures, the new boxes will have a cross connect field so that ' future cable rearrangements will minimi7.e the impact on other customers' service. The design of the new enclosures allows rearrangements by punching down jumper wires from one cable appearance terminal block across to the, other, thereby reducing the incidence of trouble. Anaconda Systems Anaconda systems are analog carrier systems that use a single cable pair to serve up to seven customer lines. Unfortunately, these Anaconda systems are discontinued by their manufacturer, which makes repair very costly in terms of time and resources. In many cases the replacement digital carrier systems are fed by two cable pairs and have the ability to serve up to 24 Gustomer lines. Anaconda-served customer lines cannot utilize custom calling features, voice mail, answering machines, and other optional services. When complete, the Tech III program is anticipated to eliminate all Anaconda systems in southern Idaho from the Qwest network. Boise-151061.1 0029164-00033 Qwest engineers will identify the specific Tech ill projects to be completed on a qufu-terly basis and present them to the Commission for review prior to ordering material or scheduling work. The creation of the project list will focus on those projects that are identified as having the maximum impact on improving the basic local exchange network in areas that would fall outside of CUlTent Qwest rehabilitation/capital budgets. The key. . criteria for identifying projects within any of the four areas of service improvement is reduction in the number of cable-related repair reports. On an annual basis, the Company will provide the Staff with a presentation of the actual dollars spent on each project job, including all appropriate detail for Commission . verification. Attachment 1 to this proposal is the list of projects the Company proposes to complete in the fIrst 90 days of the project. For the initial year of Tech III the Company will begin actual construction as soon as approval is received. Qwest will attempt to . complete as much of the $3 million 2003 goal as practicable. For the second year of the , program (2004) the Company plans to spend $750K per quarter. During the third year (2005) the Company will adjust its quarterly expenditures to adjust for any shortfall ; experienced due to the shortened construction period in year 2003. In accordance with the practice in past "Tech" projects, Qwest will work. with the ' . Commission Staff to make accounting entries that reflect that funds contributed by the Commission from the Revenue Sharing Plan will not be included in Qwest's intrastate rate base. The matching funds provided by Qwest would flow to the rate base in the normal course of business. While past Tech programs separated projects by whether they' were funded by Revenue Sharing or Company matching dollars, for Tech ill Qwest . proposes to simplify this process by funding each completed job with 50% Commission dollars and 50% Company match. Similarly, Qwest proposes that the Company and Commission share equally in funding each category where a particular project involves both capital and expense dollars. To ensure that Title 61 customers receive credit for Revenue Sharing dollars used for the expense component of the program, Qwest commits to make appropriate proforma Boise-151061.1 0029164-00033 adjustments in any future rate proceeding to capture the cumulative amount of the Tech ill expenses paid using Revenue Sharing funds. Qwest looks forward to working with the Commission Staff to work out the details associated with the accounting reports and fonnats for the program. The Tech ill proposal builds on the strengths of the existing voice network, improves portions o(the local exchange network and upgrades the capabilities of the network to meet emerging needs of residential, small business, government, and large business retail customers, in addition to competitive local exchange carriers located in various Qwest wire centers across southern Idaho. The proposed Tech ill project improves on the common resource of the public network in southern Idaho, benefiting all Qwest southern Idaho customers. . Qwest appreciates the opportunity to once again partner with the Commission to further develop the Idaho telecommunications network. The Company desires to fully cooperate with the Commission and any other interested parties to develop an appropriate record regarding disposition of the final Revenue Sharing funds. Qwest suggests that the Tech ill proposal be considered under modified procedure to allow for speedy review and to allow Tech ill construction to begin during the first quarter 2003. Questions regarding the Tech ill program can be directed to John Souba at (208)385-8666. ... . Sincerely, Jim Schmit Qwest Idaho President Boise-15106Ll 0029164-00033 ClLl IDFLIOMA IDFLIOMA IDFLIOMA IDFLIOMA IDFLIOMA IDFLIOMA IDFLIOMA IDFLIOMA IOFLIOMA IDFLIOMA IOFLIOMA BUHLlOMA . GDNGIDMA GDNGIDMA TWFLIDMA TWFLIOMA , TWFLIDMA WNOLIOMA WNOLIDMA PYTTIOMA PYTTIOMA PYTTIOMA WESTIOMA PYTTIOMA NMPAIOMA BOISIOWE BOISIOMA BOISIOMA BOIOIDMA BOISIOMA BOISIDMA BOISIOMA lOWEST TECH III INITIAL 90 DAY WORK LIST i Lead Cable Replacement Projects Jbb descri tibn Rep cables at Sunset Dr & Rose Ave. Repcable 803 Saturn to 1573 Beverly Rep cable on Lincoln Rd 30 to P., RL4A Rep cables on Wadsworth Ave. Rep cable W 17th and Mill Road Rep cable bet 10th and 11 th, Cranmer to Division Rep cable 597 E 9th to 985 E 9th Rep cables at Elva and Emerson Rep cable 1385 E 1 st to 485 NW Bonneville Rep cable Anderson and Wadsworth Rep cables at Vine Dr & Rose Ave. Rep lead 26-26 aerial cable Rep lead cable rodent damage Rep lead cable rodent damage Rep lead cable rodent damage Rep lead cable severe rodent damage Rep lead cable Rep lead cable rodent damage Rep lead cable rodent damage Rep lead cable Rep lead cable Rep lead cable Rep lead cable Rep lead cable Rep lead cable Rep cable 26-26 lead cable (1912) rodent damage Rep cable between 15th & 18th Rep cable owyhee & camrose In rodent damage Rep cable 15th between Irene & dewey Rep cable ralroy & taggart rodent damage Rep cable bannock & pierce Rep cable roberts st Estimated total Attachment 1 page 1 of 2 GJXBbE't~~()t:JN;PS . " ~ ... 0. ' ',""....,' ".' .'. 11 OSUNSET 1551-1600+ ,1626-1650 803S,451-500 1546N25E 101-125 110SUNSET 651-700 3482WB 51-250 940CRNMR 301-400 740CRNMR 125 110SUNSET, 1201-1225+1251-1575 140T 101-150 110SUNSET 601-650 110SUNSET 1726-1750+ ,1776-1800 429 151-250 324W4 626-650 214E4 51- 1120sp 1-100 1147FE 301-450 109wise 51-100 256B 1001-1025 402 651-675 111N8th XXTL-101 21351-1400 21201-1250 23g 401-450 2 51-100 13125 901-1100 1707, 101-300 223C317 ' 50NO 1301-1350 223C321 22120 701-750 223C316 223c319 $362 997 Attachment 1 page 2 of 2 aWEST TECH JIIINITIAL 90 WORK LIST Replacement of Access Points at following locations: WIRE CENTER BLFTIDMA BUHLlDMA PYTTIDMA EMMTIDMA LOCATION 603 AIRPORT ROAD 11712TH 1124 7TH AV 1408 MAIN ESTIMATED TOTAL $126,000 TECH III 90 Day Work List Total Cabling Work Access Point Replacements $362 997. $126,000. Total 90 Day $488,997.