Opinion ID: 76304
Heading Depth: 2
Heading Rank: 1

Heading: Georgia Power's Burden in FCC's Evidentiary Framework

Text: 22 The starting point for our analysis is the basic burden of proof that obtained in the pole attachment rate dispute between Georgia Power and Teleport. FCC concluded that Georgia Power had failed to justify its proposed rate using any acceptable rate formula. See Final Order, 17 F.C.C.R. at 19,863, ¶ 12. In its petition for review, Georgia Power contends it did adequately justify its proposed rate through its initial submission of an affidavit by Thomas G. Park, and that Park's affidavit was sufficient under the then-extant rules of the Telecom Order. Under the Telecom Order, FCC required each utility to develop a presumptive average number of attachers and, upon request, supply to any attaching entity the methodology and information by which a utility's presumption was determined. Telecom Order, 13 F.C.C.R. 6777, ¶ 78. 23 Georgia Power did not come close to meeting its burden to explain the methodology and information underlying its pole attachment rate. The Final Order identified two basic deficiencies in Georgia Power's submissions. First, it noted that Georgia Power's average number of 1.5922 was invalid because the minimum possible number of attachers was two. Final Order, 17 F.C.C.R. at 19,866, ¶ 17. Under both the Telecom Order and the Recon Order, Georgia Power was required to include itself in the average number of attachers. Thus, an average number of 1.5922 would appear to be facially implausible. 24 Georgia Power has made no argument that rebuts this conclusion by FCC. Our independent review of the record leads us to suspect that the average of 1.5922 may not be quite so implausible, however. The calculations included with the Park affidavit include a line labeled Avg. # of Attachments. The calculations also include a line labeled Common Space/Average # of Attachments, with the quantity 11. What we find confusing about this entry, however, is that another line entry lists the common space to allocate as 28.5 feet. If we divide 28.5 feet by Georgia Power's proffered 1.5922 average number of attachers, we find the common space per attacher to be not 11 feet, but nearly 18 feet. Hypothetically, however, if we add one to Georgia Power's average of 1.5922 — thereby adding Georgia Power itself as an attaching entity to whom common space must be allocated — the calculation of common space per attacher would then yield 11. 3 If this alternative were the correct calculation, Georgia Power's presumptive average number of attachers would not be quite so implausible. Remarkably, Georgia Power has never explained whether this possible interpretation of its calculations is accurate. We can at best only speculate, and under the circumstances, we defer to the expertise of the FCC in interpreting the rate calculation. 25 The exact status of Georgia Power's proffered average number of attachers is ultimately beside the point, however, because of the second deficiency identified in the Final Order. Apart from any facial implausibility in Georgia Power's calculations, FCC also found that Georgia Power supplied no explanation or documentation that supported its figure of 1.5922 average attachers. Final Order, 17 F.C.C.R. at 19,866, ¶ 17. A utility is required to supply not just an average number of attachers, but also the methodology and underlying data supporting the proffered average number. See 47 C.F.R. § 1.1404(j). As FCC explained, Georgia Power provided none of the underlying data upon which its proffered average number of attachers was based. Final Order, 17 F.C.C.R. at 19,865, ¶ 15. Georgia Power's absolute failure to submit its underlying data contrasts significantly with Teleport's submissions accompanying its complaint; Teleport substantiated nearly all of the data underlying its rate calculations with information derived from Georgia Power's own records. The comparison of the two sets of rate calculations throws into specific relief the degree to which Georgia Power's submissions were deficient. 26 In addition, even if Georgia Power had provided data to explain how it arrived at its figure, it remains unclear what its figure represents or what methodology was used to arrive at its figure. The Park Affidavit contains only the following parenthetical explanation of how the average was calculated: no. of poles with cable attach. & no. of poles with telecom attach. divided by the total no. of poles with both cable and telecom attach. Whatever this ratio may actually represent, it does not appear to represent the average number of attachments to each of Georgia Power's poles. Georgia Power has done nothing to explain what it might mean. There is little wonder that FCC concluded Georgia Power's explanation of its proffered average was meaningless. Final Order, 17 F.C.C.R. at 19,866, ¶ 15. 27 Finally, we note that the problems associated with Georgia Power's rate calculations were not limited to its failure to justify the average number of attaching entities. For example, Teleport's complaint relied on FCC presumptions for certain other numbers that figure into the rate calculation, including the presumed height of the pole and the presumed amount of unusable space. See 47 C.F.R. § 1.1404(g)(1)(xi)-(xii); see also id. § 1.1418. While those presumptions are rebuttable, Georgia Power simply substituted different figures without any explanation or justification. More importantly, Georgia Power's submissions were predicated on a replacement cost methodology rather than FCC's historical cost methodology, despite the fact that FCC had rejected the use of replacements costs from the very beginning of its pole attachment regulations. 28 In short, it appears that, because of its disagreements with FCC's regulations governing pole attachment rates, Georgia Power submitted pole attachment information that conformed to its own views of the best methodology for setting rates. See Final Order, 17 F.C.C.R. at 19,863, ¶ 12 ([Georgia Power] substituted its own formula for calculating pole attachment rates.). As a result, Georgia Power steadfastly refused to supply FCC with all of the information it was required to provide in order to justify its pole attachment rate. It can come as little surprise that FCC concluded Georgia Power had failed to meet its burden of supplying the methodology and underlying data that substantiated its rate. We agree with FCC's conclusion. 29