20020920Qwest's Response.pdf

Mary S. Hobson (ISB #2142)
Stoel Rives LLP
101 S. Capitol Blvd., Suite 1900
Boise, ID 83702
Tele: [phone]Fax: [phone]
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2002 SEP 20 PN 4: 30
i~~tL'= FUDLIC
UTILIT iES COiiriiSSION
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION
BY THE IDAHO PUBLIC UTILITIES
COMMISSION TO DETERMINE A POLE
ATTACHMENT RATE FORMULA
PURSUANT TO IDAHO CODE SECTION 61-
538
CASE NO. GNR-02-
QWEST CORPORATION'S COMMENTS
Qwest Corporation (Qwest) provides the following comments in response to the pole
attachment fonnula proposed by the Commission Staff, and to the procedural questions raised in
the letter of Weldon B. Stutzman, dated September 6, 2002.
Stafrs Pole Attachment Formula
Qwest appreciates this opportunity to comment on the fonnula proposed by Staff, known
as the "Modified Benewah Fonnula . After attending the workshop held in Boise on August 27
2002, it is apparent that there are widely diverse views on the appropriate level of pole
attachment fees to be paid by those entities attaching to poles owned by Idaho utilities. Staffs
proposal, in Qwest's opinion, offers a reasonable compromise between the positions advocated
by the cable industry on the one hand, and the fonnula presented by Idaho Power Company on
the other. In the interests of reaching a speedy and efficient conclusion to these proceedings
therefore, Qwest is willing to accept what it understands as the "Modified Benewah Fonnula" as
illustrated in the attachment to Mr. Stutzman s September 6 letter for purposes of establishing
QWEST CORPORA nON'S COMMENTS -
Boise-147045.2oo29164-00084
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the "default" attachment fee for use of its poles and for Qwest's use of the poles provided by
other Idaho utilities.
Because Staffs proposal is presented in the fonn of an Idaho Power Company example
it is necessary to clarify how it will apply to Qwest. One of the benefits of the Staff proposal is
its use of publicly available data. In the case of Idaho Power Company and other electric
companies, the necessary data for calculation of the carrying charge component of the Staff
fonnula is available from filings made with the Federal Energy Regulatory Commission. For
telecommunications companies such as Qwest, similar data is submitted to the Federal
Communications Commission (FCC) in Automated Regulatory Management Infonnation
System (ARMIS) reports. In addition, for companies that have a negative net pole investment, it
is necessary to modify the Staffs fonnula to use gross investment, rather than net investment
amounts in the calculation and application of the carrying charges. As the FCC recognized in
their order, this is the most reasonable and efficient application of the general carrying charge
fonnula for the production of consistent results across all companies.
Finally, although the Modified Benewah Fonnula represents a reasonable compromise
Qwest recognizes that it yields results that, in some cases, may amount to a sizeable price
increase to certain pole users. In the interest of compromise, Qwest suggests that the Staff
consider adopting a "phase in" period for the rates established under the Staff proposal, similar to
that adopted by the FCC for its pole attachment fonnulas. A multi-year approach to achieving
the higher rate levels could ease the economic impact on affected users and pennit them to adjust
their retail rates in order to recover the increased costs.
QWEST CORPORA nON'S COMMENTS -
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Procedural Schedule
Qwest believes that the issues relating to the level of pole attachment fees are well
understood by the parties, the Staff and the Commission. It is apparent that the key driver of the
price level for pole attachments is the amount of the unusable space that is assigned to the cost
calculation for various pole users. Resolution of this issue is a matter of policy that is not
necessarily aided by the evidentiary hearing process. Qwest recommends, therefore, that the
interested parties file briefs on the remaining disputed issues. If the Commission feels it would
be aided by oral argument, such a proceeding could be scheduled after the briefs are submitted.
RESPECTFULLY SUBMITTED this 20th day of September, 2002.
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Mary S. son
Stoel Rives LLP
Attorneys for Qwest Corporation
QWEST CORPORATION'S COMMENTS-
Boise-147045.2oo29164-00084
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