1. (a) When the parties fail to reach a voluntarily negotiated written agreement regarding the pole attachment rate and the complaint procedures under Subpart 5 of this part are invoked, the Arkansas Public Service Commission will apply the formula in Appendix A of this part for determining the maximum just and reasonable rate.
2. (b) The investments and expenses used in the pole attachment rate formula shall be based on historical or original cost.

3. (c)

   1. (1) The pole owner’s net pole investment shall be adjusted to eliminate the investment in crossarms and other costs not associated with owning a pole.
   2. (2) There is a rebuttable presumption that these costs are equal to fifteen percent (15%) of net investment for electric utilities and five percent (5%) for telephone companies.

4. (d)

   1. (1) When the net pole investment is zero (0) or negative, the gross investment may be substituted for the net investment in Appendix A, except for the return element of the carrying charges, which is always a net calculation.
   2. (2) The return element shall be calculated as follows: Return Element = 8.00% x Net Pole Investment ÷ Gross Pole Investment

5. (e) The following rebuttable presumptions are used in the calculation of the space factor:

   1. (1) The height of a pole is equal to 37.5 feet;
   2. (2) Usable space on the pole is equal to 10.17 feet;
   3. (3) Unusable space on the pole is equal to 27.33 feet, which includes the safety space;

   4. (4) Occupied usable space is:

      1. (A) Cable television service is equal to one foot (1’); and
      2. (B) Telecommunications service is equal to one foot (1’);
   5. (5) The presumptive average number of attachers on a pole is equal to three (3), which includes the pole owner;

   6. (6) A pole owner may only challenge the presumptive average number of attachers in subdivision (e)(5) of this section upon a showing that:

      1. (A) The pole owner, upon request, provided all attaching entities and all entities seeking access the methodology and information upon which the pole owner’s average number of attachers is based;
      2. (B) The pole owner exercised good faith in establishing and updating its average number of attachers; and
      3. (C) The methodology used to demonstrate why the presumptive number is incorrect;

   7. (7) An attaching entity may only challenge the presumptive average number of attachers in subdivision (e)(5) of this section or the average number of attachers propounded by the pole owner pursuant to subdivision (e)(6) of this section upon a showing of:

      1. (A) Information demonstrating why the pole owner’s average is incorrect; and
      2. (B)

6. (i) What the attaching entity believes should be the average and the methodology used to obtain that average.

   1. (ii) Where a complete inspection is impractical, a statistically sound survey may be submitted; and
   2. (8) Upon successful challenge of the existing average number of attachers pursuant to subdivisions (e)(6) or (7) of this section, the resulting data determined shall be used by the utility as the number of attachers within the rate formula.
7. (f) The presumptions in subdivisions (e)(1) – (4) of this section may be rebutted by either the pole owner or the attaching entity.

Codification Notes: This section was promulgated as Rule 4.01 prior to codification in the Code of Arkansas Rules.