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HomeMy WebLinkAboutATT Presentation Truckee Donner 6-8-15 USE © 2015 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are tra June 8, 2015Regulatory -AT&T DirectorRhinehart,Dan PRESENTED BY Truckee Donner Public Utility District PRESENTED TO AT&T Protest of Adopted RatePole Attachment Rate Calculation &T and is subject to change.ATand/or AT&T affiliated companies. The information contained herein is not an offer, commitment, representation or warranty byarks of AT&T Intellectual Property dem © 2015 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are tra April 24 & 28, May 22 & 29–District responses to document requests •May 12, May 27–Supplemental document requests •AT&T filed its protest and first request for documents–April 15, 2015 •Board adopted a $19.00 rate–March 18, 2015 •AT&T identified issues with $28.84 rate development–February 9, 2015 •District proposed rate of $28.84–December 18, 2014 •terminated effective October 31, 2014. The 1937 Pole Attachment agreement between AT&T and the District was Pole Attachment Agreement and Rate Development Timeline Background 2&T and is subject to change.ATand/or AT&T affiliated companies. The information contained herein is not an offer, commitment, representation or warranty byarks of AT&T Intellectual Property dem © 2015 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are tra Acknowledgement that California Public Utilities Code governs Use of District books of account as the starting pointUse of the basic FCC formula for developing pole attachment rateCore Agreement Areas Points of Agreement 3&T and is subject to change.ATand/or AT&T affiliated companies. The information contained herein is not an offer, commitment, representation or warranty byarks of AT&T Intellectual Property dem © 2015 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are tra dispute the value of this input–Return Element •not applicable–Taxes Element •agree on numerator, dispute denominator–Depreciation Element •agree on numerator, dispute denominator–Maintenance Element •agree on numerator, dispute denominator–Administrative Element •Carrying Charge RateNo dispute–Adjustment Factor Central area of dispute–Net Pole Investment Element No dispute–Occupied Space Factor Major FCC Formula Components The Rate Development Formula 4&T and is subject to change.ATand/or AT&T affiliated companies. The information contained herein is not an offer, commitment, representation or warranty byarks of AT&T Intellectual Property dem © 2015 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are tra The District adjusted ONLY pole investments back to 1960 Mandatory restatement of infrastructure investments for phase 1 and 2 entities –ending after June 15, 1999) Optional restatement for “Phase 3” entities (Under $10M revenue in first FY –place for FYs ending after June 30, 1980Allows the value of historic infrastructure investments to be restated for assets in –GASB 34•Method used by the District since at least 2001–Capital Contributions shown as an addition to net income–Plant investment shown on books at original cost–GASB 33•Pole investments were restated upward based on GASB 33 and 34District Upward Adjustment to Pole Investments Net Pole Investment Dispute 5&T and is subject to change.ATand/or AT&T affiliated companies. The information contained herein is not an offer, commitment, representation or warranty byarks of AT&T Intellectual Property dem © 2015 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are tra All asset values should be adjusted to reflect capital contributions•Capi tal contributions attributable to poles must reduce booked investment•GASB 33 and 34 adjustments are foreclosed•reimbursed capital costs.”historical capital costs are determined shall include a credit for all be historical capital costs less depreciation. The accounting upon which the “The basis for the computation of annual capital costs \[investments\] shall •9512(a)(3)§The upward adjustment to pole investment amounts conflicts with PU Code Net Pole Investment Dispute 6&T and is subject to change.ATand/or AT&T affiliated companies. The information contained herein is not an offer, commitment, representation or warranty byarks of AT&T Intellectual Property dem © 2015 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are tra Prohibited by statute–Rate Rounding Compromise for purposes of reaching agreement –therefore a required return of near zero.The District has no cost of equity and apparently no interest bearing debt and –District computations included “cost of borrowing” and “rate of return”–Statutory requirement that attaching entities not be subsidized–Required Return CWIP is not “used and useful” and is excluded from rate base by CPUC–Included in the District’s computations–Construction Work In Progress (CWIP)There are three other areas of dispute with the rate development Other Areas of Dispute 7&T and is subject to change.ATand/or AT&T affiliated companies. The information contained herein is not an offer, commitment, representation or warranty byarks of AT&T Intellectual Property dem © 2015 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are tra$ 3.79Corrected Statutory Pole Attachment Rate–$( 0.16)Eliminate Rate Rounding–$( 1.58)Set Required Rate of Return to 8.00%–$ 0.13Remove Construction Work in Progress–$ 1.09Recognize Other Capital Contributions–$( 2.77)Recognize Pole Capital Contributions–$(11.92)Remove GASB 33/34 Effects–$ 19.00March 18, 2015 Approved Rate–Summary Rate DevelopmentAT&T identified numerous issues with the District’s rate development. Summary Modifications to District Adopted Rate 8&T and is subject to change.ATand/or AT&T affiliated companies. The information contained herein is not an offer, commitment, representation or warranty byarks of AT&T Intellectual Property dem © 2015 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are tra Q&A 9&T and is subject to change.ATand/or AT&T affiliated companies. The information contained herein is not an offer, commitment, representation or warranty byarks of AT&T Intellectual Property dem