3 AAC 52.920. Elements used in developing annual joint use rate

(a) In the formula in 3 AAC 52.910(b) , "total usable space" and "occupied space" are determined from studies performed by the utilities. If a utility does not have acceptable studies of actual usable and occupied space, the commission will apply the following presumptions:

(1) the occupied space for telecommunications pole attachments is one foot;

(2) the total usable space on a pole is 13.5 feet;

(3) the total unusable space on a pole is 24 feet;

(4) the total height of a pole is 37.5 feet.

(b) In the formula in 3 AAC 52.910(b) , the average net investment per pole is determined by dividing the gross pole investment, less the associated depreciation reserve and the accumulated deferred income taxes, by the number of poles, and multiplying the total by a bare pole investment factor. The bare pole investment factor is a ratio that reflects the proportionate share of a utility's total net pole investment attributable to investment in bare poles, guys, and anchors, but not cross arms and other appurtenances that are not pole-related. If a utility does not have acceptable studies of the actual proportionate share of net pole investment attributable to bare poles, or an accounting system that separately records investment in appurtenances that are not pole-related, the bare pole investment factor is 0.85 for poles owned by an electric utility and 0.95 for poles owned by a telephone utility.

(1) the depreciation ratio, which, for poles, is calculated by multiplying the pole depreciation rate by the ratio of gross pole investment to net pole investment;

(2) the tax ratio, which is the ratio of actual taxes paid, except for income taxes, to total net utility plant investment;

(3) the return on investment ratio, which is

(A) the percentage rate of return that the commission most recently authorized for that utility, using either the

(i) weighted cost of debt and equity; or

(ii) actual return on net plant allowed by a different rate-setting methodology; or

(B) for a utility that is not subject to economic regulation within the meaning given in 3 AAC 48.820, a percentage rate of return that is 11.25 percent or the rate of return authorized by the utility's governing board if less than 11.25 percent;

(4) a provision for income taxes, if applicable;

(5) the maintenance ratio, which, for poles, is the ratio of annual maintenance expense for poles to the net pole investment; for electric utility-owned poles, the maintenance expense is determined by dividing the maintenance expense for overhead distribution lines by net plant investment of the associated overhead distribution lines;

(6) the administrative expense ratio, which is the ratio of administrative expense to net utility plant investment.

History: Eff. 5/8/88, Register 106; am 2/2/2003, Register 165

Authority: AS 42.05.151

AS 42.05.311

AS 42.05.321

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