1
ABOUT CPS ENERGY
CPS Energy was founded in 1860
• Purchased by City of San Antonio in 1942
• Nation’s largest municipally-owned energy
company, providing both natural gas and electric
service
– 786,000 electric customers
– 340,000 gas customers
• Independent Board of Trustees
Located in San Antonio, Texas
• 7th largest city in U.S.
• 3rd fastest growing city
• Most visited city in Texas – 26 Million visitors
annually
• One of the oldest cities in the western U.S.
• Major military presence
2
“NEW” CPS ENERGY
POLE ATTACHMENT PROGRAM
In 2016, CPS Energy implemented the most significant
changes in the history of its Pole Attachment Program -• New Pole Attachment Agreements for all Attaching
Entities;
• Implementation of New Pole Attachment Standards;
– New Streamlined Pole Attachment Application Processes
– Implementation of a “One-Touch Transfer” Process
– Addresses Wire Attachments & Wireless Installations
• Quarterly meetings with Attaching Entities to improve
communication / relationship;
• Inventory of all Pole Attachments; and
• Single point of contact for Pole Attachment issues
3
WHAT WE WILL COVER
o Background – Reasons for Development of New Pole
Attachment Program
o Contracting Process -- CPS Energy’s Pole Attachment and
Wireless Installation Agreements
o Development – Crafting the Pole Attachment Standards for
Wire and Wireless Facilities
o Standards in Action -- Permitting Process
-- Wireless Installations
-- One-Touch Transfer Process
o Lessons Learned & Moving Forward
4
WHAT WE WILL COVER
 Background – Reasons for Development of New Pole
Attachment Program.
o Contracting Process -- CPS Energy’s Pole Attachment and
Wireless Installation Agreements
o Development – Crafting the Pole Attachment Standards for
Wire and Wireless Facilities
o Standards in Action -- Permitting Process
-- Wireless Installations
-- One-Touch Transfer Process
o Lessons Learned & Moving Forward
5
ADDRESSI NG A FUNDAM ENT AL
O P ERAT I ONS CO NCERN
• Texas law requires “non-discriminatory” treatment of
certificated telecommunications providers with regard to
terms of access to Municipally-Owned Utility (MOU) poles.
• Entry of Google Fiber into San Antonio resulted in
innovative pole attachment terms.
• CPS Energy had over 35 entities with pole attachment
contracts, none of which were subject to unilateral
amendment on the part of CPS Energy.
• Any Attaching Entity could have refused to amend its pole
attachment contract and even threaten litigation on the
basis of discriminatory treatment.
6
ATTACHMENTS BY ENTITY
CPS Energy
2016 Total Attachments by Attaching Entity
# of Attachments
≥ 5,000
14%
1,000 < x ≤ 5,000
16%
300 < x ≤ 1,000
16%
≤ 300
54%
0%
10%
20%
30%
40%
50%
60%
Percentage of Attachers
7
THE IMPACT OF WIRELESS
CPS Energy anticipated the coming impact of
small cell wireless installations.
• FCC expects wireless data consumption to
Increase six fold by 2022.
‒
‒
‒
Estimated 100,000 to 150,000 small cell antenna sites will
be constructed by 2018
455,000 by 2020
over 800,000 by 2026
• Over 50% to be installed on utility poles.
• Different technologies and business models.
• No “rules” in place – Texas Legislature is
expected to pass small cell legislation in 2017.
8
LEGAL LANDSCAPE
• While Investor-Owned Utilities (IOUs) are required to comply
with the federal Pole Attachment Act (PAA) and FCC
implementing regulations, MOUs are not subject to the PAA.
• Federal law allows state public service commissions to choose
to exercise jurisdiction over pole attachment rates and
practices.
‒
‒
Texas law requires MOUs to use the FCC Telecom Pole Attachment
Formula as a rate “ceiling.”
Under SB 1004/HB 2838, being considered by the Texas Legislature, MOUs
will be required to grant pole access to small cell wireless installations.
• FCC has not established “one-touch” or small cell wireless
facilities regulations, however, FCC recently released a NPRM
to consider further amendments to the Telecom Pole
Attachment Formula and adoption of a one-touch process.
• Federal and state regulations recognize the necessity for
utility specific pole attachment operational procedures.
9
“REBOOTING” THE POLE
ATTACHMENT PROGRAM
• CPS Energy recognized the need to change the way it
administered Pole Attachment Applications to address
new market realities increasing demand for access to
utility poles.
• Pole Attachments would now be viewed in the context
of a business process, not simply as an engineering
process.
• Therefore, CPS Energy “rebooted” the entire
Pole Attachment Program.
– To assert proactive control over its poles.
– To support broadband deployments.
– To provide flexibility to address new technologies
while maintaining non-discriminatory practices.
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DESIGNING A NEW
PROGRAM
• Program is viewed as a “business process”
improvement, not just an engineering
process.
CREATE
MODEL
• New Program must:
‒ Address safety and performance concerns
‒ Provide flexibility for different technologies &
business models
‒ Not discriminate among providers of
functionally equivalent services
‒ Remain true to CPS Energy’s Pole Attachment
Program’s fundamental values of Safety,
Reliability, and Customer Service
• Recognition that change /improvement
would require
‒ Time
‒ Stakeholder outreach
ANALYZE
INSTIGATE
MONITOR
IMPROVE
MODEL
FINALIZE
IMPLEMENT
-- Resources
-- Executive Support
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FACTORS / INFLUENCES
External
Relations
Internal
Support
New
Technology
Incumbent
Providers
Pending
Litigation
Old
Agreements
Resources /
Organization
Private
Networks
Legal
Landscape
Google &
Other New
Entrants
Past
Practices /
Standards
New CPS Energy Pole Attachment Program
12
PROGRAM
FOUNDATION
Values to
Success
Safety
Business
Success
Reliability
Standards cannot breach
safety, reliability &
customer service
‒
Non-discriminatory to
similar parties
‒
Transparent & open
‒
Easy to administer
‒
Enforceable
Customer
Service
13
GUIDING PRINCIPLES AND
VALUES
Safety
– Keep CPS Energy facilities, employees, and the public
safe at all times
Reliability
– Continuous compliance with all network reliability
standards
– Timely reporting & resolution of violations and
noncompliance
Customer Service
–
–
–
–
–
Non-discriminatory & transparent processes
Improved communication with all stakeholders
Providing Attaching Entity’s more options and control
Minimize disruption to the community
Appropriate cost recovery
14
WHAT WE SET OUT TO DO…
To accomplish the new business plan & objectives, CPS Energy had
to:
•
Terminate all existing Pole Attachment Agreements.
•
Develop & implement new Pole Attachment Standards in an open
and transparent process.
•
Develop & execute with Attaching Entities new Pro-Forma Pole
Attachment Agreements incorporating the Standards by reference.
•
Improve communication with Attaching Entities to facilitate
cooperation with the changes.
•
Secure outside resources to help us administer the Application
process given expected new workload.
•
Commission a comprehensive Pole Attachment Inventory
•
Implement organizational changes to support the new CPS Energy
Pole Attachment Program.
15
IMPROVING
COMMUNICATIONS
New website
•
Primary
Communication Tool
•
Timely Information
•
Document
Downloads
•
Document Submittals
•
Useful Information
•
Links
www.cpsenergy.com/poleattachments
16
STAKEHOLDER ENGAGEMENT
Changes of the magnitude undertaken could not
have been accomplished without consultation and
input from our Attaching Entity stakeholders:
• Workshops (both Quarterly and Technical)
• Conference calls
• New webpage (www.cpsenergy.com/poleattachments)
• Frequent one-to-one meetings
• Requests for formal written comments
• Written response to stakeholder comments
17
ORGANI ZAT I ONAL CH ANGES
FROM PROJECT TO PROCESS
Historically, Pole Attachment work was part of CPS Energy’s
Overhead Engineering Department:
• Multiple contractors for Make-Ready Engineering
• Challenges with timely Make-Ready Construction resulting from
increase volume of pole attachment applications
New Approach: CPS Energy created a dedicated Pole
Attachment Department with a full-time manager and support
staff:
• Dedicated contractor support for Attaching Entities
• Overall project management administration and tracking
• Eliminates conflicts and give Attaching Entities more control over
Make-Ready process
18
WHAT WE WILL COVER
 Background – Reasons for Development of New Pole
Attachment Program
 Contracting Process -- CPS Energy’s Pole Attachment and
Wireless Installation Agreements
o Development – Crafting the Pole Attachment Standards for
Wire and Wireless Facilities
o Standards in Action -- Permitting Process
-- Wireless Installations
-- One-Touch Transfer Process
o Lessons Learned & Moving Forward
19
PRO-FORMA AGREEMENTS
• One form of the Agreement(s) for all Attaching
Entities – Pro Forma (standard agreements – no
negotiation following stakeholder process).
• Agreements limited to standard business and
commercial terms.
• Technical requirements & process provisions in the
Standards are incorporated into the Agreements by
reference.
• CPS Energy reserves the right to amend Standards
as appropriate – with provisions for Attaching
Entity review.
20
TYPES OF AGREEMENTS
• Wire Agreement: Required for Attaching Entities to
install wire Attachments and Overlashings only.
• Wireless Addendum: Required for Attaching Entities
who have a Wire Agreement but also want to install
Wireless Installations .
• Wireless Installation Agreement: Required for
Attaching Entities to install Wireless Installations only.
• Infrastructure Provider Sublicensee Agreement:
Required for entities which do not own wireless
infrastructure on CPS Energy poles, but lease wireless
infrastructure from Infrastructure Providers.
21
POLE ATTACHMENT
AGREEMENT STRUCTURE
• An executed Agreement will grant the
entity a license to attach to CPS Energy
Poles contingent on securing an
Attachment or Wireless Installation
Permit.
• A Permit will grant authority to attach
to a specific Pole provided there is
compliance with the Pole Attachment
Standards.
• A Pole Attachment or Wireless
Installation Agreement without
compliance with the Pole Attachment
Standards does not authorize the access
to any Poles.
Pole
Attachment
Agreement
Pole
Attachment
Standards
Pole
Attachment
Installation
Permit
Approval
AGREEMENT “ BOILERPLATE ”
The Pro-Forma Agreements contain the
“normal” boilerplate provision generally
expected in a contract such as…
Grant of License & Duties of Parties
Applicable Pole Attachment Rate
Contract Term, Renewal & Termination
Events of Breach & Process to Cure Breach of
Contract
• Contract Amendment & Assignment
• Governing Law, Severability & Related Provisions
•
•
•
•
23
TERM OF AGREEMENT
The Pro-Forma Agreements
have:
• Initial Term: Five Years
• Renewal: Automatic for
successive one year periods
• Termination: Following the
initial term, either party may
terminate with six months
written notice
• Registration: Requires an
initial and subsequent annual
registration updates
24
POLE ATTACHMENT
AGREEMENT TIMELINE
Standard Wire Attachment Agreement
January 2016: CPS Energy provides all Attaching Entities
written notice of pole attachment contract termination.
February 2016: CPS Energy publishes draft Pro-Forma Pole
Attachment Agreement for stakeholder comment.
April 2016: CPS Energy informs stakeholders the CPS Energy
will submit a 2nd draft for stakeholder comment.
May 2016: CPS Energy publishes 2nd draft of Pro-Forma Pole
Attachment Agreement for stakeholder comment.
June 2016: Stakeholder comments due to CPS Energy.
July 2016: CPS Energy publishes approved Pro-Forma Pole
Attachment Agreement and Response to Comments.
August 1, 2016: CPS Energy begins executing the Pro-Forma
Pole Attachment Agreements.
25
WIRELESS AGREEMENT
TIMELINE
Standard Wireless Installation Agreements
September 2, 2016: CPS Energy publishes draft of Pro-Forma
Wireless Addendum and Wireless Installation Agreement for
stakeholder comment.
September 23, 2016: CPS Energy receives comments from
stakeholders.
October-November 2016: CPS Energy meets with individual
stakeholders to discuss Wireless Agreements in relation to wireless
business models .
December 2016: CPS Energy publishes approved Pro-Forma
Wireless Installation Addendum, Wireless Installation Agreement,
and Infrastructure Provider Sublicensee Agreements and Response
to Comments.
January 1, 2017: CPS Energy begins executing Wireless
Agreements.
26
WHAT WE WILL COVER
 Background – Reasons for Development of New Pole
Attachment Program
 Contracting Process -- CPS Energy’s Pole Attachment and
Wireless Installation Agreements
 Development – Crafting the Pole Attachment Standards for
Wire and Wireless Facilities
o Standards in Action -- Permitting Process
-- Wireless Installations
-- One-Touch Transfer Process
o Lessons Learned & Moving Forward
27
WH Y ST ANDARDS?
WORKING TO AVOID…
28
POLE ATTACHMENT
STANDARDS
Standards required all Pole Attachments to ensure:
Safety
‒ Public safety; and
‒ System reliability
CPS Energy Pole Attachment Standards comply with:
‒ Applicable federal, state, and local laws and
regulations;
‒ Recognized engineering standards (NESC); and
‒ Good Utility Practices
Business
Success
Reliability
Customer
Service
Provide for credibility, integrity, & acceptance in the
Pole Attachment Process
‒ Uniformity & interoperability
‒ Lower risk
‒ Reduced risks & costs to all parties
29
POLE ATTACHMENT
STANDARDS
Goals for the new Pole Attachment Standards:
• Establish in one document, the comprehensive
technical standards and administrative processes
for applying and attaching to CPS Energy Poles.
• The Standards are incorporated into the Pole
Attachment Agreement by reference.
• Include procedure for CPS Energy and/or
stakeholders to request revisions in technical
standards or pole application process without
contract renegotiate.
30
STANDARDS CONTENT
The CPS Energy Pole Attachment
Standards
are arranged as:
•
Section I – Introductory Section
•
Section II – General Administrative Provisions
•
Section III – General Technical Requirements
•
Section IV – Wire Attachment Application
Processes
•
Section V – Wireless Installation Application
Process
•
Appendices – Technical & Administrative
Information, Forms, Diagrams, Charts, and
Tables
31
P O LE AT T ACH M ENT
ST ANDARDS T I M ELI NE
February 2016: CPS Energy publishes draft Pole Attachment
Standards for stakeholder comment
April 2016: Stakeholder comments due to CPS Energy
May 2016: CPS Energy publishes approved Standards and Response to
Comments
August 1, 2016: Pole Attachment Standards become effective
August 19, 2016: CPS Energy publishes draft of Standards Version 2
for stakeholder comments, which includes the Wireless Standards
September 2016: Stakeholder comments due to CPS Energy
December 2016: CPS Energy publishes approved Standards and
Response to Comments
January 1, 2017: Pole Attachment Standards Version 2 become
effective (including Wireless Standards)
32
WI T H RESP ECT T O
ST AKEH OLDER CO M M ENT S
• Modeled publish and comment process after
regulatory rule-making and the NERC Reliability
Standards process.
• Every substantive comment was specifically
addressed by CPS Energy in writing whether accepted
in whole, in part, in modified form, or rejected.
• Time-consuming process
– Improved transparency
– More importantly, it made us objectively question
and consider our approach against our guiding
principles (safety, reliability & customer service).
33
KEY I SSUES
VERSION 1
• Pole Loading Analysis (PLA)
– CPS Energy now requires PLA on
specific poles
– Requires a Professional Engineer
to approve & seal
• Overlashing
– Allows for “notice” only if total
diameter is 3.5 inches on existing
Attachment
• NJUNS
– Initiated use of NJUNS for transfer
notifications
34
KEY I SSUES
VERSION 2
• Wireless Installations
– Pre-Certification of Wireless
Systems
– Use of the top of Pole
– Treatment of Wireless Interference
– Unique business models
– Deployment projects
• Other Improvements to the
Program
– Formal Standards Revision process
– Improved Application process
communications with use of
required forms
35
WHAT WE WILL COVER
 Background – Reasons for Development of New Pole
Attachment Program
 Contracting Process -- CPS Energy’s Pole Attachment and
Wireless Installation Agreements
 Development – Crafting the Pole Attachment Standards for
Wire and Wireless Facilities
 Standards in Action -- Permitting Process
-- Wireless Installations
-- One-Touch Transfer Process
o Lessons Learned & Moving Forward
36
APPLI CAT I ON P RO CESS
Streamlined Application Process
‒ Attaching Entity has more control over schedule
‒ New Permit Application form
‒ Enhanced electronic submittal
New Options Offered
‒ Change from the traditional approach of Make-Ready
Engineering
‒ Align and support the Attaching Entity’s business needs
Restructure of Fees
‒ Elimination of wire Attachment Application Fee
‒ Introduced new non-compliance fees (e.g., Safety Violation)
‒ Recovery of CPS Energy consultant fees
• Direct billing
• Unit pricing
37
APPLICATION PROCESS OPTIONS
38
CO M P ET I TI VE P RO VI DER STANDARD PROCESS
COMPETITIVE PROVIDER – AREA WIDE
NETWORK DEPLOYMENT
ST ANDARD P RO CESS FO R
WI RELESS I NST ALLAT I ONS
41
NAT I ONAL PO LI CY SCR UT I NY
“ O N E - T O U C H MA K E - R E A D Y ”
“Rearranging existing pole attachments
or installing new poles — a process
referred to as ‘make-ready’ work — can
be a significant source of cost and
delay in building broadband networks.”
-- Federal Communications
Commission
Connecting America: The National Broadband Plan
March 2010
Recommendation 6.2
42
WIRELESS INSTALLATION
STANDARDS
• Four components of any wireless
facilities installation:
– Antenna
– Cabinet
– Backhaul
– Electricity
43
WIRELESS INSTALLATION
STANDARDS
• Three types of Wireless Installations
under CPS Energy’s Pole Attachment
Standards:
– Pole-Top Antenna Installations
– Mid-Pole Antenna Installations
– Strand-Mounted Antenna Installations
44
WIRELESS INSTALLATION
STANDARDS
• Per-Certification Process – Review of
wireless equipment for:
–
–
–
–
–
–
–
Placement of equipment on pole
Number of feet of pole use
RF interference testing
RF safety training
Communications contractor certifications
Execution of electric service agreement
Establishment of electric account
45
WIRELESS INSTALLATION
STANDARDS
• Permit Application Process:
– Applicant submits Application, including makeready engineering design documents.
– Review of days make-ready engineering design for
compliance with Standards within 45 days.
– Applicant responsible for up-front payment of any
make-ready electrical construction.
– Applicant installs wireless equipment & testing.
– CPS Energy conducts post-installation inspection.
– CPS Energy releases permit.
46
WIRELESS INSTALLATION
STANDARDS
• Pole-Top Antenna Installation
– Subject to replacement of wooden pole
with hollow composite pole.
– Applicant responsible for paying for
pole replacement as part of make-ready
engineering.
47
WIRELESS INSTALLATION
STANDARDS
• Mid-Pole Antenna Installation
– Installed one foot below
communications lines.
– Wireless equipment not allowed on pole
within communications space.
48
WIRELESS INSTALLATION
STANDARDS
• Strand-Mounted Antenna Installations
– These installations accommodate cable
company deployment of WiFi access
points.
– Concerns over use of electricity.
– Subject to permit application process.
49
C P S E N E R G Y ’ S O N E - T O UC H
TRANSFER PROCESS
Under the CPS Energy’s Pole Attachment
Standards, a “One-Touch Transfer” is…
The ability of an Attaching Entity to effect the
“Simple Transfers” of other Attaching
Entities’ Attachments during the Make-Ready
process by effecting a relocation … without
the need to cut and splice.
50
TRADITIONAL TRANSFERS
Step 1:
Company A moves its
Attachment within
30-60 days.
C
B
A
Step 2:
Company B moves its
Attachment within
the next 30-60 days.
Make-Ready indicates
Company D can
install on top if
Company A, B, and C
move their
Attachments down a
few inches.
C
B
A
Step 3:
Company C moves its
Attachment within the next
30-60 days.
– Now Company D can Attach.
C
B
A
51
ONE-TOUCH TRANSFER
D
C
B
A
One –Touch Transfer:
Company D makes all moves Simple Transfers for
Attachments A, B, & C using a CPS Energy approved
contractor on the same day.
52
BENEFITS OF
ONE-TOUCH TRANSFER
One-Touch benefits telecommunications
industry, customers, & community at large:
Telecommunication
Industry
Customers
& Community
‒ Speed-to-market
‒ Customer impacts minimized
‒ Transparency
‒ Construction delays avoided
‒ Efficient resource
allocation
‒ Economic development
benefits
‒ No network disruptions
‒ Expedited network
deployments
53
ELIGIBILITY
Elements of One-Touch Transfer Process:
1) Limited to Simple Transfers only
2) Use of CPS Energy certified contractor
3) Applicable to CPS Energy
4) Applicable to the Attaching Entity
5) Subject to Applicable Engineering Standards
6) Advanced notice of transfer (NJUNS)
7) Post transfer notice & inspection
8) Cost responsibility
54
ONE-TOUCH CONTRACTOR
CERTIFICATION
What it is:
What it is not:
• A criteria-driven
qualification process
open to multiple
communication
network contractors.
• An RFP process whereby
CPS Energy engages a
single qualified
contractor on behalf of
all Attaching Entities.
• Attaching Entities
select from this list and
engage the qualified
contractor directly.
55
COMPLEX TRANSFERS
“Complex Transfers” are transfers that
require the Attachment to be cut & spliced.
‒ Advanced notification of request (NJUNS)
‒ Attachment owner’s responsibility
‒ Subject to Applicable Engineering Standards
‒ Escalation process for non-responsiveness
‒ Cost responsibility
56
WHAT WE WILL COVER
 Background – Reasons for Development of New Pole
Attachment Program
 Contracting Process -- CPS Energy’s Pole Attachment and
Wireless Installation Agreements
 Development – Crafting the Pole Attachment Standards for
Wire and Wireless Facilities
 Standards in Action -- Permitting Process
-- Wireless Installations
-- One-Touch Transfer Process
 Lessons Learned & Moving Forward
57
TOTAL TEAM EFFORT
Given the scope of the changes in CPS Energy’s Pole Attachment
Program, a total CPS Energy Team effort was required.
Legal & Risk Management
•
Drafting new Agreements and reviewing Standards
•
Negotiating with Attaching Entities
Distribution Engineering and Standards
•
Assisting in the development of new Standards and NESC Compliance issues
•
Assisting in approving contractors to work on CPS Energy Facilities
Corporate Communications and External Relations
•
Assisting with new Pole Attachment Services website
•
Internal communications to help get the “message” out
•
Communicating with local officials and leaders as to direction CPS Energy moving
Procurement and Accounting
•
Assisting with soliciting of contractors, purchase orders, and contracts
•
Assisting with accounts receivable and forecasting
58
WHERE ARE WE TODAY
Not Started
• Web-based tool to
monitor status of
Applications
• Development of
internal KPIs
• Compliance audits
• Incorporation of
standards for
banner
attachments
In Progress
• Pole Attachment
Inventory
• Improvements to
webpage
• Development of
Wireless PreCertification
process
• Improve
contractor
certification
process
• Improvement in
NJUNS process
• Internal staffing /
training
Completed
• Long-term
business strategy
• Pro-Forma
Agreements
• Pole Attachment
Standards
• Creation of a Pole
Attachment
webpage
• Use of NJUNS
• Unit pricing/direct
billing for MakeReady review
59
KEY LESSONS LEARNED
• Define and stay true to your business values and objectives.
– Works to ensure executive support.
• Engage, early & often, with:
– Your legal counsel
– Your internal stakeholders
-- Your Attaching Entities
-- Your community & elected leaders
• Recognize, each Attaching Entity has a different business model
and strategy.
– However, you must remain agnostic/unbiased to technology choices.
• Do not be afraid to require compliance with your standards or
enforce your contracts.
– These are your assets or more importantly -- your owner’s assets.
• Proactively manage the work!
60
BE PREPARED TO MAKE
ADJUSTMENTS
However beautiful the
strategy, you should
occasionally look at the
results.
--Winston Churchill
61
For More Information:
Jesse Lopez
Manager, Pole Attachment Services
210-353-4381
[email protected]
www.cpsenergy.com/poleattachments
62