Pole Attachment Development (October 8, 2002)
FCC Rejects Georgia Power Rates

Date: Oct 08, 2002

Rejecting another effort by electric utilities to charge more reasonable rates for pole attachments, the Federal Communications Commission today rejected Georgia Power's proposed $53.35 attachment rate in favor of rates in the $6 - $8 range.

To calculate its $53.35 rate, Georgia Power replaced the FCC's attacher-friendly presumptions with presumptions more favorable to utilities. For example, Georgia Power calculated its rates using replacement costs, rather than historical (depreciated) costs; included certain Federal Energy Regulatory Commission ("FERC") accounts that the FCC does not allow; and proposed a "space allocation" factor well above the FCC's presumptive allocations.

The issue of whether pole owners may employ such utility-friendly presumptions in the FCC formula is currently on appeal in the U.S. Court of Appeals for both the D.C. and 11th Circuits. The 11th Circuit opinion is expected any day now, and the D.C. Circuit heard oral argument on this issue on Friday.

For more information, please contact Tom Magee at (202) 434-4128, or via e-mail at magee@khlaw.com.