Illinois Administrative Code › Title 83 - PUBLIC UTILITIES › Part 315 - POLE ATTACHMENT RATES, TERMS AND CONDITIONS APPLICABLE TO CABLE TELEVISION COMPANIES, ELECTRIC UTILITIES AND TELECOMMUNICATIONS CARRIERS › Section 315.20 - Presumptive Pole Attachment Rental Rate Formula

Current through Register Vol. 48, No. 28, July 12, 2024
Subject to the provisions of Section
				315.30 below, an annual pole
				attachment rental rate included in a pole attachment agreement between a CATV
				company and a regulated entity which is presented to the Commission for consent and
				approval under Section 7-102 of the Act shall be presumed to be just and reasonable
				if shown to be equal to the rate resulting from the following formula:
Rental Rate
=
(Cost per pole) x (CATV Space) x (Carrying Charge)
(Total Usable Space)
Where:
a) "Cost per Pole"
			 shall be the regulated entity's book investment in all bare distribution poles
			 included in the electric utility Account 364 or telecommunications carrier Account
			 2411 at the most recent December 31, divided by the equivalent number of
			 distribution poles included in the account at such date. If the book investment for
			 "bare" poles is not ascertainable, then a deduction of 30% shall be made to reflect
			 appurtenances (i.e., crossarms) not used by CATV. This 30% deduction from pole
			 investment may be rebutted by a statistically reliable survey to the
			 contrary.
b) "CATV Space" shall be 1.0
			 foot, representing an allocation to the CATV company of 1 foot of the useful space
			 for the CATV attachments.
c) "Total
			 Usable Space" shall be 14 feet in accordance with surveys submitted by both CATV and
			 the regulated entities. This 14-feet presumption for usable space may be rebutted by
			 a statistically reliable survey to the contrary.
d) "Carrying Charge" shall include the sum of the
			 following components determined in the following manner:
1) "Maintenance costs carrying charge" shall be
			 the maintenance expense attributed to the maintenance of the poles and associated
			 equipment set forth in the respective electric utility Account 593 or
			 telecommunications carrier Account 6411 as recorded in the books of accounts for the
			 most recently completed calendar year divided by the respective cost of plant
			 recorded in such plant account for the most recently completed calendar
			 year.
2) "Administrative and general
			 costs carrying charge" shall be calculated as the sum of the expenses recorded in
			 the electric utility Accounts 920, 921, 923, 924, 925, 926, 927, 928, 929, 930, 931
			 and 935 (subtracting the credit in Account 922) or telecommunications carrier
			 Accounts 6110 through 6124, 6510 through 6565, 6610 through 6623 and 6710 through
			 6790 (excluding depreciation account 6560 through 6566), for the most recent
			 completed calendar year, divided by the investment in electric utility or
			 telecommunications carrier plant in-service (including amounts unclassified and
			 allocated common plant, if any) at the most recently completed calendar
			 year.
3) "Depreciation expense carrying
			 charge" shall be the annual depreciation rate applied to electric utility Account
			 364 or telecommunications carrier Account 2411, expressed as a decimal, for the most
			 recently completed calendar year.
4)
			 "Taxes other than income taxes carrying charge" shall be calculated using a
			 methodology which reasonably develops the expense for such taxes for the most
			 recently completed calendar year attributable to the ownership of the facilities
			 recorded in electric utility Account 364 or telecommunications carrier Account 2411,
			 divided by the book cost of such plant. Taxes do not include any estimated or
			 anticipated taxes but only those which have accrued.
5) "Return and income taxes carrying charge" shall
			 be determined by the regulated entity by considering the rates of return currently
			 being permitted on depreciated original cost rate bases as allowed by the Commission
			 in the respective utility's most recent rate case. With said rate of return so
			 determined, the return and income tax carrying charge shall be computed as follows:
RIT
=
r
x
DOC
1.0 - f - s + fs
OC
Where:
A) "RIT" is the
			 return and income tax carrying charge;
B) "r" is the rate of return expressed as a
			 decimal;
C) "f" is the effective federal
			 income tax rate as incurred by the regulated entity in the most recently completed
			 calendar year expressed as a decimal;
D)
			 "s" is the effective state income tax rate as incurred by the regulated entity in
			 the most recently completed calendar year, expressed as a decimal;
E) "DOC" is the depreciated original cost of the
			 pole account as of the end of the most recent calendar year; and
F) "OC" is the original cost of the pole account,
			 as of the end of the most recent calendar year.