Report No. CS 97-12                CABLE SERVICES ACTION                      March 14, 1997

     COMMISSION SEEKS COMMENT ON REVISED POLE ATTACHMENT FORMULA

     The Commission has adopted a Notice of Proposed Rulemaking (FCC 97-94)  seeking
comment on proposed revisions to the Commission's rules relating to the maximum just and
reasonable rates utilities may charge for attachments made to a pole, duct, conduit or right-of-
way.

     The impetus of the Notice is a Petition for Clarification, or in the Alternative, a Waiver of
our formulas for computing maximum reasonable pole attachment rates filed by Southwestern
Bell ("SWB").  In its Petition, SWB asserts that in certain cases application of the current pole
attachment formula results in a negative rate.  The Notice seeks comment as to whether the
current pole attachment formula should be modified or adjusted to eliminate certain anomalies
and rate instabilities that could cause a negative pole attachment rate.  The Commission also
seeks comment on other aspects of the existing pole attachment formula that  certain parties
believe require modification.  In addition, the Commission seeks comment on revising its current
pole attachment formula to reflect the change made in 1988 to replace the Part 31 accounting
system with the Part 32 Uniform System of Accounts.  Finally, the Commission seeks comment
on a proposed conduit methodology.  

     The proposals contained in this item are designed to facilitate pole attachment rate
computations.  These actions would directly contribute to the Commission's goals of just and
reasonable pole attachment rates, fair competition between telecommunications providers and
utility companies, and rules that allow for equitable private resolutions between the parties.

     Action by the Commission March 14, 1997, by Notice of Proposed Rulemaking   (FCC
97-94).  Chairman Hundt, Commissioners Quello, Ness and Chong.

                                -FCC-

News Media Contact: Morgan Broman at 202-418-2358
Cable Services Bureau Contact: Michael T. McMenamin at 418-2231