XI. Pacific's Balancing Account
Pacific alleges that, before D.97-11-029, it offered its customers inside wire service that included rearranging and providing SPCs. D.97-11-029 concluded that SPCs were utility-owned facilities and ordered Pacific to stop charging for the work it was doing on SPCs at the request of customers. In D.00-04-062, Pacific was authorized to track the revenues it was forgoing in a memorandum account. Pacific states that the rules proposed by the ALJ provide that the building owner own SPCs, and that SPCs are INC. As a result, Pacific would be able to charge for such services under the proposed rules. Therefore, Pacific states that since it cannot go back and charge customers for the work it performed, it should be allowed to recover the amount in the memorandum account by including it in the surcredit calculation for 2002.
Cox opposes Pacific's request. Cox alleges that Pacific has continued to charge for such work and has, therefore, already received compensation. Cox also states that since rules being addressed in this proceeding are prospective, nothing in the rules that will be adopted would allow Pacific to go back and charge customers or property owners for work done on facilities that were then owned by the utility.
The rules we adopt herein are prospective in nature, and do not change the findings of D.97-11-029. Therefore, Pacific's request will be denied.
1. The MPOE is the closest practical point to where the utility's facilities cross a property line or the closest practicable point to where the utility's facilities enter a multiunit building or buildings.
2. The LLDP is the point at which the utilities facilities end and the property owner's facilities begin.
3. In D.92-01-023, the Commission adopted the language of a proposed settlement (the settlement itself was not adopted) that provided that the LLDP should be located at the MPOE.
4. In D.93-05-014, the Commission clarified that the requirement in D.92-02-023, that the LLDP be located at the MPOE, applies only to copper facilities.
5. Movement of the MPOE/LLDP will not result in lost utility revenues.
6. There is no significant market for the facilities that would be transferred to the property owner as a result of movement of the MPOE/LLDP.
7. Use of an undefined "fair market value" for the value of facilities that would be transferred to the property owner as a result of movement of the MPOE/LLDP could inhibit competition.
8. The utility's remaining investment in the facilities that would be transferred to the property owner as a result of movement of the MPOE/LLDP is the net book value.
9. Net book value constitutes just compensation for facilities transferred to the property owner as a result of movement of the MPOE/LLDP.
10. There is no reason not to allow a property owner to act through an agent.
11. The proceedings that led to this proceeding addressed only copper facilities.
12. The determination of whether the LLDP should be located at the MPOE for facilities other than copper, is beyond the scope of this proceeding.
13. There is no reason why the MPOE/LLDP relocation rules should be different depending on the technology used.
14. If the owner of the SPCs does not have reasonable control of the SPCs, the owner cannot ensure that the SPCs are properly maintained.
15. If a utility is allowed to have ownership and, therefore, control of SPCs, it could place restrictions on access to SPCs. If the restrictions are unreasonable, competition could be adversely affected.
16. The Commission has the authority and jurisdiction necessary to correct SPC-related problems if the SPCS are owned by utilities.
17. Property owners have control over access to the utility facilities on their property, and have the ability to place restrictions on access whether or not they own the SPCs.
18. Unless the Commission was to exert jurisdiction over property owners, it may not have sufficient ability to directly address SPC-related problems that may arise if the property owners were allowed to own SPCs.
19. Facilities-based carriers have the expertise necessary to properly operate and maintain SPCs while property owners do not.
20. Resellers cannot own facilities such as SPCs.
21. No party has proposed that utilities need to acquire existing SPCs not owned by the facilities-based carrier that serves the customer.
22. Requiring the facilities-based carrier that serves the customer to acquire existing SPCs it does not own could result in numerous eminent domain proceedings that would cost more than the SPCs are worth.
23. Requiring the facilities-based carrier that serves the customer to acquire existing SPCs it does not own would cause costs to be incurred to change out the existing SPCs for no other reason than the imposition of a new rule regarding ownership.
24. Billing adjustments to reflect the loss of a customer routinely occur after the fact.
25. It is important that a carrier's removal of existing SPCs be done in a safe manner that does not result in damage to another carrier's facilities.
26. A bridge clip is a type of SPC.
27. No party requested hearings or briefs.
28. Hearings are not needed.
1. The rules adopted herein should apply to all utilities.
2. The utility should be required to relocate the MPOE/LLDP as requested by the property owner, or his or her agent, provided that the property owner agrees, and has the ability, to pay for all relocation expenses reasonably incurred, relocation is technically feasible, and relocation is not prohibited by applicable local, state or federal laws, rules or regulations.
3. Use of an undefined "fair market value" for the value of facilities that would be transferred to the property owner as a result of movement of the MPOE/LLDP is not in the public interest.
4. Use of the net book value for the facilities that would be transferred to the property owner as a result of movement of the MPOE/LLDP does not constitute an unlawful taking.
5. Facilities that would be transferred to the property owner as a result of movement of the MPOE/LLDP should be valued at the net book value.
6. Allowing the property owner to use an agent will facilitate arrangements for movement of the MPOE/LLDP.
7. SPCs should be owned by the facilities-based carrier that provides service to the customer.
8. In the case of customers served by resellers, the SPCs should be owned by the underlying facilities-based carrier.
9. When a customer transfers to a new carrier or orders any changes to his or her service that would require movement or removal of existing SPCs, the facilities-based carrier should be required to replace any SPCs it does not own with those it does.
10. If existing SPCs must be removed for maintenance, repair or other legitimate purposes, they should be replaced with the facilities-based carrier's SPCs.
11. Whenever a utility removes another carrier's SPCs, it should be required to do so in a safe manner that causes no harm to another carrier's facilities.
12. When a tenant switches service from one utility to another, the new carrier should not disconnect the previous carrier's SPCs until at least 24-hours after the previous carrier has been notified of the switch. Notice should be made by phone, or by any other means where such other means are available.
13. Utilities should not be allowed to remove or disconnect SPCs if it will result in a violation of Section 2883.
14. Pacific's request for recovery of the revenues included in its memorandum account should be denied.
15. The rules regarding movement of the MPOE/LLDP and SPCs included as Attachments A and B to this decision should be adopted.
16. All utilities should be ordered to file advice letters to revise their tariffs as necessary to reflect the rules adopted herein.
IT IS ORDERED that:
1. The rules for movement of the Minimum Point of Entry (MPOE) and/or the Local Loop Demarcation Point (LLDP), and the ownership of Service Provisioning Cross-Connects (SPCs), included as Attachments A and B to this decision, are adopted for all local exchange carriers.
2. Within 60 days of the effective date of this decision, all local exchange carriers shall file advice letters to revise their tariffs as necessary to reflect the rules adopted herein.
3. This proceeding is closed.
This order is effective today.
Dated August 22, 2002, at San Francisco, California.
LORETTA M. LYNCH
President
HENRY M. DUQUE
CARL W. WOOD
GEOFFREY F. BROWN
MICHAEL R. PEEVEY
Commissioners
Relocation of the Minimum Point of Entry (MPOE) and/or the Local Loop Demarcation Point (LLDP)
1. Definition: The MPOE is the closest practical point to where the utility's facilities cross a property line or the closest practicable point to where the utility's facilities enter a multiunit building or buildings. The LLDP is the point at which the utilities facilities end and the property owner's facilities begin. For copper land-line facilities only, the LLDP shall be located at the MPOE.
2. Applicability: Continuous multi-tenant property.
3. Only the property owner or his or her agent may request relocation of the MPOE/LLDP.
4. The utility must relocate the MPOE/LLDP as requested by the property owner, or his or her agent, provided that the following conditions are met:
· The property owner agrees, and has the ability, to pay for all relocation expenses reasonably incurred.
· Relocation is technically feasible. (The utility bears the burden of proving technical infeasibility.)
· Relocation is not prohibited by applicable local, state or federal laws, rules or regulations.
5. To the extent that the relocation of the MPOE/LLDP results in utility property being transferred to the property owner, the utility shall charge the property owner the net book value (recorded cost less accumulated depreciation) of the property.
6. The utility shall have tariffs on file specifying these rules, and its requirements, procedures and charges for relocation of the MPOE/LLDP consistent with these rules. Utilities must have approved tariffs on file, as specified herein, in order to charge for relocation of the MPOE/LLDP.
ATTACHMENT B
Page 1
Service Provisioning Cross-Connects (SPCs)
1. Definition: There are two types of cross-connects.
a. Wires that connect the utility's building entrance terminal to the utility's network access termination point, e.g., ready access terminals (RATs) or Network Interface Units (NIUs). (These configurations comprise a small portion of the utility's network.) Such cross-connects do not connect directly to the building owner's access terminal. They need not be altered in order for another utility to provide service to customers. Therefore, they need not be accessible to other utilities or the building owner. As a result, such cross-connects are part of the utility's network. These cross-connects will be identified as Utility Network Cross-Connects (UNCs).
b. Wires that connect the utility's network access termination point to the building owner's access terminal. These are the cross-connects that may be removed or changed when a customer switches from one provider to another. These cross-connects will be identified as Service Provisioning Cross-Connects (SPCs). Bridge clips that connect the utility's network to the building owner's wiring are also SPCs.
c. There are configurations that have no building owner's access terminals. In these cases, the inside wire runs from the customer's equipment directly to the utility network access termination point. No SPC is utilized. Such configurations are beyond the scope of these rules.
2. SPCs shall be owned by the facilities-based carrier that provides service to the customer.
3. In the case of customers served by resellers, the underlying facilities-based carrier shall own the SPCs.
4. Utilities shall not remove or disconnect SPCs if it will result in a violation of Public Utilities Code Section 2883.
ATTACHMENT B
Page 2
5. Existing SPCs need not be removed and replaced by SPCs owned by the facilities-based carrier that provides service to the customer until:
· The customer transfers to a new carrier.
· The customer orders any changes to his or her service that would require movement or removal of existing SPCs.
· Existing SPCs must be removed for maintenance, repair or other legitimate purposes.
7. When a tenant switches service from one utility to another, the new carrier shall not disconnect the previous carrier's SPCs until at least 24-hours after the previous carrier has been notified of the switch. Notice may be made by phone, or by any other means where such other means are available.
8. Whenever a utility removes another carrier's SPCs, it shall do so in a safe manner that causes no harm to another carrier's facilities.
9. All carriers shall establish and make available to other carriers a phone number where notice of a customer's switch to another carrier can be made. The phone number shall be capable of receiving incoming calls 24 hours per day, seven days per week. The phone number may also be used for other purposes.
