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HomeMy WebLinkAbout20250828EX 7 Declaration_of_Jesse Butler.pdf Docusign Envelope ID:062D1 EFD-1476-4632-B190-38E7D8BBD9D0 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION WIRED OR WIRELESS, INC. ) Complainant, ) V. ) Case No.AVU-E-25-11 AVISTA CORPORATION, ) d/b/a Avista Utilities, ) Respondent. ) DECLARATION OF JESSE BUTLER IN SUPPORT OF AVISTA CORPORATION's ANSWER 1. My name is Jesse Butler. I am over the age of 18, have personal knowledge of the matters set forth herein, and am competent to testify. 2. I am the Joint Use Manager for Avista Corporation ("Avista"). In this role, I oversee the administration of Avista's pole attachment program, including application processing, licensee coordination,and rate implementation.I am responsible for communicating with licensees regarding invoices, Avista's operational requirements, changes to fee structures, and compliance expectations. 3. I have been directly involved in the administration of the Joint Use Master License Agreement ("JUMLA") between Avista and Wired or Wireless, Inc. ("WOW") since becoming Joint Use Manager in January 2022. The JUMLA governs WOW's communications equipment on Avista's utility poles. 4. In my capacity as Joint Use Manager, I have conducted operational communications with WOW,including those concerning attachment applications,field audits,rate schedules, and procedural compliance. I am also responsible for overseeing the calculation of the applicable rates for WOW's attachments, which form the basis of the invoices Avista issues to Docusign Envelope ID:062D1 EFD-1476-4632-B190-38E7D8BBD9D0 WOW. 5. For telecommunications carrier attachments in Idaho, Avista utilizes the Federal Communications Commission's "old" telecommunications rate formula. This formula allocates the costs of 2/3 of the unusable space on a pole equally among the average number of attaching entities. Under this approach, every attacher, regardless of the space it actually occupied, is assigned responsibility for an equal share of 2/3 of the pole's unusable space. The rate yielded by the formula varies depending upon the average number of attaching entities. Avista's application of the formula assumes the existence of two attaching entities—an assumption that I understand WOW agrees with. This formula is set forth at page 2 of WOW's Exhibit C to its Complaint. Avista believes that this formula more equitably allocates costs than the current (i.e. "new") FCC telecom rate formula. Avista applies the FCC's "old" telecom rate uniformly to all non-ILEC telecom carriers. No other attacher besides WOW has taken issue with this rate formula. 6. On December 9, 2022, Avista and VentureSum Corporation ("VentureSum") sent a joint letter to all Avista licensees, including WOW,providing notice of Avista's comprehensive audit of attachments planned for 2023. The letter stated VentureSum would conduct the audit on Avista's behalf and explained that the results could lead to billing adjustments, including recovery of unpaid back rent. See Attachment A hereto, which is a true and correct copy of Avista's December 9, 2022 letter regarding the 2023 audit. This letter invited WOW to participate in the audit. WOW declined. 7. On December 13, 2023, Avista sent WOW a letter explaining that the 2023 audit had identified unreported and unauthorized attachments and would result in back billing under the JUMLA. Avista explained that the audit findings triggered a true-up invoice for past rent and adjustments to current billing based on the revised attachment count and applicable rates.Attached Docusign Envelope ID:062D1 EFD-1476-4632-B190-38E7D8BBD9D0 hereto as Attachment B is a true and correct copy of Avista's December 13, 2023 letter to WOW. 8. Prior to 2023, WOW failed to pay for the total number of its attachments on Avista's poles, as revealed by the audit Avista conducted in 2023. Attached hereto is a true and correct copy of an email I sent to WOW on December 15,2023,regarding the findings of Avista's 2023 audit, including the attached audit report, labeled as Attachment C. 9. On February 13, 2024, Avista sent WOW a default notice, on which I was copied, regarding WOW's failure to pay its invoices for 2023. Exhibit 9 is a true and correct copy of Avista's February 13, 2024 30 Day Notice to Cure Defaults letter to WOW. 10. The last overlash application Avista received from WOW was in 2019—which Avista approved. Therefore, I am not sure how WOW has come to believe that "Avista denied WOW the right to overlash existing facilities"as alleged in WOW's complaint. [Complaint,¶ 17] WOW has not submitted any overlash applications for Avista to even consider. 11. Under Section 2.2 of Exhibit G the JUMLA,"[w]henever Licensee wishes to attach Communication Facilities in or on Licensor's Structures on a new Route or Site or to alter the location or Overlash any Attachments,Licensee shall first make written application to Licensor[.]" [Ex. B of Complaint/ § 2.2 of Exhibit G to the JUMLA] Further, Section 2.1 states that"[n]othing in this Agreement shall be construed to obligate the Licensor to grant the Licensee permission to use any particular Structure. Permission for Licensee's use of a Structure will be given only if Licensor in its sole judgment determines that its Structure has sufficient and suitable capacity available and can meet all applicable safety, reliability, and engineering considerations for the [pole] and the facilities in or on the Structure." [Ex. B of Complaint/ § 2.1 of JUMLA] 12. Avista discovered that from 2019-2023,WOW replaced coaxial cable with fiber on Idaho's Hope Peninsula without obtaining prior approval from Avista. The JUMLA provisions I Docusign Envelope ID:062D1 EFD-1476-4632-B190-38E7D8BBD9D0 cite above require an attacher to first make a written application to perform work on Avista poles and entitles Avista to exercise the exclusive judgment of whether to allow it. Because WOW had failed to follow the JUMLA's mandated procedure by performing work outside of Avista's permitting and engineering review process and without coordination, it prevented Avista from being able to assess whether the relevant poles were compatible for the work and thus safe. Therefore, Avista required WOW to stop all work on the poles. [Ex. 8 / E-Mail Correspondence Re Stop Work Notification for Wired or Wireless,Inc./Air-Pipe] The importance of this procedure was underscored by the fact that when Avista investigated WOW's unauthorized work, it led to the discovery of multiple WOW attachments that were in violation of the National Electrical Safety Code clearance requirements. [Ex. 6/October 2023 E-Mail Correspondence] 13. Lastly, I can attest that Avista's Exhibit 8 is a true and correct copy of the April 2023 E-mail correspondence between Scott Meredith of Avista's Joint Use Department and William Geibel Jr., President of WOW. I can further attest that Avista's Exhibit 10 is a true and correct copy of Avista's May 15, 2024 Settlement Offer Letter, and Avista's Exhibit I is a true and correct copy of Avista's June 21, 2024 Letter to WOW. Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the facts set forth in this declaration are true and correct to the best of my knowledge, information, and belief. SIGNED this 28 day of August 2025. Signed by: ( SSc, bAV SEIHU'P'EER