March 5, 2013
Kentucky would benefit from fair and reasonable pole attachment rates for all the Commonwealth’s utilities. Fair and reasonable rates would protect the public from artificially high cable bills. Dependable and reliable rates would also give cable companies certainty about pole attachment expenses that would help them justify investing their own capital to deploy new telecommunications services needed for rural economic development. Using one fair method to determine all pole attachment rates would contribute to a business environment of fair competition which would benefit businesses and consumers.
Some Unregulated Utilities Charge Excessive Rates
At present the pole attachment rates determined by the Kentucky Public Service Commission’s fair and efficient rate methodology average $4.87 for each pole annually. In contrast the average pole attachment rate for an unregulated utility is $13.86. In some cases the rates of unregulated utilities can be as much as $21.64 per pole.
Artificially High Rates of Unregulated Poles Cause Serious Problems