POWER May 2022 Intl - 15

LEGAL & REGULATORY
Electric Utilities Have
Critical Role in Broadband
Infrastructure Deployment
Floyd R. Self
E
lectric utilities will play a critical role in new broadband
infrastructure deployment under the Infrastructure Investment
and Jobs Act of 2021, known as the Infrastructure
Act. Whether access to the internet occurs via wired or wireless
facilities, pole attachment agreements among pole owners,
electric utilities, and broadband providers-usually telecom
and cable companies-will play a vital role in bridging the
digital divide.
Pole Attachments Regulations
The Federal Communications Commission (FCC) first regulated
pole attachments in 1978, when it required pole owners to
charge cable operators just and reasonable rates, terms, and
conditions for pole attachments. In 1986, to promote facilitiesbased
telecommunications services competition, the Pole Attachment
Act expanded the scope of the FCC's oversight to
include any local exchange carrier or an electric, gas, water,
steam, or other public utility " who owns or controls poles,
ducts, conduits, or rights-of-way used, in whole or in part, for
any wire communications. " The FCC has determined that " lack
of reliable, timely, and affordable access to physical infrastructure-particularly
utility poles-is often a significant barrier to
deploying wireline and wireless services. "
The FCC has developed a comprehensive set of regulations
governing pole attachments for cable and telecommunications
providers and their co-mingled broadband services. These regulations
preempt state law and establish a baseline for rates,
terms, and conditions that are just and reasonable.
However, a state may " reverse preempt " regulation of
pole attachments by certifying to the FCC that it regulates
rates, terms, and conditions for pole attachments and that its
state regulations consider the interests of consumers. Currently,
22 states and the District of Columbia have certified
to the FCC that they regulate pole attachments, with most
adopting rules that are the same or substantially similar to
the FCC regulations.
By having clear policies for pole attachment rates, terms,
and conditions, it should be easier to successfully negotiate
pole attachment agreements. Where parties cannot agree,
complaints to the FCC, or state utility commissions with oversight,
generally must be resolved within a year, with complaints
involving a denial of access required to be resolved sooner,
usually within 180 days.
Funding for Broadband
The Infrastructure Act allocates $65 billion for broadband, of
which $42 billion is designated for network buildout-this is
separate from the billions in funding authorized for electric
grid resilience. The FCC estimates more than 14 million Americans
lack access to reliable, high-speed broadband, including
20% of rural households. The White House in announcing the
plan in November 2021 wrote: " Broadband internet is necesMay
2022 | POWER
sary for Americans to do their jobs, to participate equally in
school learning, health care, and to stay connected. " BroadbandNow,
a group that provides a database of internet service
providers, estimates more than 42 million Americans lack
high-speed internet access.
Each state will receive at least $100 million in grants, with
the balance allocated based upon each state's underserved
and high-cost locations. Electric, telecom, and cable utilities-
along with local governments and other entities-are expected
to compete for these grants. Disputes between pole owners
and attachers will likely be amplified and litigated, as aerial
wires attached to poles is often the easiest and most economical
way to deploy broadband facilities. Key pole attachments
issues include:
■ Denial of Access. Access to poles can be denied on a nondiscriminatory
basis for safety, reliability, and engineering
reasons, but most denials of access should be solvable
through the make-ready process.
■ Make-Ready Charges. Pole attachers must pay for costs
they cause in making a pole ready to add its facilities, but
they are not required to pay for correcting existing violations
or changes that benefit the pole owner. The FCC clarified
in January 2021 that " utilities may not require requesting
attachers to pay the entire cost of pole replacements that
are not necessitated solely by the new attacher and, thus,
may not avoid responsibility for pole replacement costs by
postponing replacements until new attachment requests
are submitted. "
■ Timeliness. Requiring new negotiated agreements, long
permitting processing periods, limits on the number of
applications, and additional make-ready requirements will
delay buildouts.
■ Duplicative Poles. Once electric utilities put lines underground,
or erect new poles to meet storm-hardening requirements,
disputes arise over whether the pole attachers
will move to the new poles, be required to buy the old pole,
or just continue to pay rent on the old pole.
■ Rates. While 47 U.S.C. section 224(e) and the FCC's rules
provide formulas for setting rates, the inputs to the formulas
are often disputed.
There is a clear public policy preference for good faith negotiations
to establish pole attachment agreements and resolve
problems. It remains to be seen whether $42 billion can paper
over these pole attachment issues so electric utilities and pole
attachers can work together to enable the speedy deployment
of needed broadband infrastructure. ■
-Floyd R. Self is a partner in the Tallahassee, Florida, law office
of Berger Singerman LLP, where for more than 35 years he has
represented a wide spectrum of utilities, businesses, local
governments, and associations in energy, land use,
telecommunications, water, and technology issues.
www.powermag.com
15
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