SRT/jva 9/30/2004

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Bell Telephone Company (U 1001 C) d/b/a SBC California for Expedited Dispute Resolution of a Right-of-Way Agreement with Roseville Telephone Company Pursuant to 47 U.S.C. § 224(c) and Decision 98-10-058.

Application 03-10-039 (Filed October 15, 2003)

FINAL ARBITRATOR'S REPORT

I. Summary

This decision adopts telephone and conduit rates to be paid by Pacific Bell Telephone Company, d/b/a SBC California (SBC) to SureWest Telephone,¹ formerly known as Roseville Telephone (SureWest). It resolves the three disputes that remained between these parties when they filed for dispute resolution, as follows:

1. Whether to include investment in general support facilities (GSF) in the calculation of pole and conduit rates. Resolution: I decline to include GSF costs in pole and conduit rates as SureWest proposes. Instead, I allow SureWest to charge pole and conduit rates according to the methodology developed by the Federal Communications Commission (FCC), which still allows SureWest recovery of administrative costs.

2. How to divide the annual cost of pole ownership among pole attachers when setting pole rates. Resolution: I adopt SBC's proposed means of allocating the percentage of the pole it uses, and count SBC as an attacher for purposes of calculating pole rates.

3. Whether SBC's own CLEC should be permitted to use an interoffice fiber facility constructed by the SBC incumbent local exchange carrier (ILEC). Resolution: I allow the SBC CLEC to use the interoffice facility.