15103189D 
HOUSE BILL NO. 2325
Offered January 22, 2015
A BILL to amend and reenact §56-466.1 of the Code of 
 Virginia, relating to attachments to a public utility's poles by broadband 
 service providers.
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Patron-- Minchew
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Committee Referral Pending
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Be it enacted by the General Assembly of Virginia: 
 
 
1. That §56-466.1 of the Code of Virginia is amended and 
 reenacted as follows: 
 
 
§56-466.1. Pole attachments; access by broadband service 
 providers.  
 
 
A. As used in this section:  
 
 
"Broadband service 
 provider" means any person that provides 
 information services, as such term is defined in subdivision 24 of 47 
 U.S.C. §153, to 
 consumers through authenticated 
 access to, or presence on, the Internet by means of a switched or dedicated 
 telecommunications channel upon which the provider provides transit routing of 
 Internet protocol packets for and on 
 behalf of the consumer. "Broadband service 
 provider" includes a person 
 that offers a 
 content-neutral broadband service and 
 that does not offer its own voice or video services. 
 
 
"Cable television system" means any system licensed, 
 franchised or certificated pursuant to Article 1.2 (§15.2-2108.19 et seq.) of 
 Chapter 21 of Title 15.2 that transmits television signals, for distribution to 
 subscribers of its services for a fee, by means of wires or cables connecting 
 its distribution facilities with its subscriber's television receiver or other 
 equipment connecting to the subscriber's television receiver, and not by 
 transmission of television signals through the air.  
 
 
"Electric cooperative" means a utility services 
 cooperative formed under or subject to Article 1 (§56-231.15 et seq.) of 
 Chapter 9.1.  
 
 
"Pole attachment" means any attachment by a cable 
 television system, broadband service provider, 
 or provider of telecommunications service to a pole, duct, conduit, 
 right-of-way or similar facility owned or controlled by a public utility.  
 
 
"Public utility" has the same meaning ascribed 
 thereto in §56-232, provided that it shall 
 include any electric cooperative.  
 
 
"Rearrangement" means work performed at the request 
 of a telecommunications service provider, broadband service provider, 
 or cable television system to, on or in an existing pole, duct, conduit, 
 right-of-way or similar facility owned or controlled by a public utility that 
 is necessary to make such pole, duct, conduit, right-of-way, or similar 
 facility usable for a pole attachment. "Rearrangement" shall include 
 replacement, at the request of a telecommunications service provider, broadband service provider, or 
 cable television system, of the existing pole, duct, conduit, right-of-way, or 
 similar facility if the existing pole, duct, conduit, right-of-way, or similar 
 facility does not contain adequate surplus space or excess capacity and cannot 
 be rearranged so as to create the adequate surplus space or excess capacity 
 required for a pole attachment.  
 
 
"Telecommunications service provider" means any 
 public service corporation or public service company that holds a certificate 
 of public convenience and necessity to furnish local exchange telephone service 
 or interexchange telephone service.  
 
 
B. Upon request by a telecommunications service provider, broadband service provider, 
 or cable television system to a public utility, both the public utility and the 
 telecommunications service provider, broadband service provider, 
 or cable television system shall negotiate in good faith to arrive at a 
 mutually agreeable contract for attachments to the public utility's poles by 
 the telecommunications service provider, broadband service provider, 
 or cable television system.  
 
 
C. After 
 entering into a contract Each public 
 utility shall provide each telecommunications service provider, 
 broadband service provider, and cable television system with neutral 
 and nondiscriminatory access to any pole, duct, 
 conduit, or right-of-way owned or controlled by it, for the 
 purpose of facilitating expansion of broadband service by 
 broadband service providers to residents, farms, and businesses in the 
 Commonwealth. The Commission is authorized 
 to determine just and reasonable rates, terms, conditions, and costs 
 for attachments to its poles by any telecommunications service provider, broadband service provider, 
 or cable television system, a public utility shall 
 permit, upon reasonable terms and conditions and the payment of reasonable 
 annual charges and the cost of any required rearrangement, the attachment of 
 any wire, cable, facility or apparatus to its poles or pedestals, or the 
 placement of any wire, cable, facility or apparatus in conduit or duct space 
 owned or controlled by it, by such telecommunications service provider or cable 
 television system that is authorized by law, to construct and maintain the 
 attachment, if the parties cannot reach 
 agreement pursuant to subsection B, or if 
 either party asserts that the rates, terms, conditions, or costs applicable to an 
 agreement are not just and reasonable as defined in 42 U.S.C. §
 224(d). Any party that seeks pole attachments or has 
 existing pole attachments on public utility poles, or 
 any public utility owning a pole occupied by 
 pole attachments of a telecommunications service provider, broadband 
 service provider, or a cable television system, may seek a 
 determination from the Commission as to just and reasonable rates, terms, 
 conditions, and costs. The terms, conditions, and costs to be determined by the 
 Commission shall include, without limitation, rearrangement and make-ready 
 costs, pole replacement costs, and all other costs incidental to pole 
 attachments and maintenance, replacement, and inspection of poles or pole 
 attachments, together with time deadlines for any pole attachment to ensure 
 rapid deployment of broadband and other communications services and all other 
 terms and conditions associated with pole attachment requests. A rate is just 
 and reasonable if it assures a public utility the 
 recovery of not less than the additional costs of providing pole attachments, 
 nor more than an amount determined by multiplying the percentage of the total 
 usable space, or the percentage of the total duct or conduit capacity, that is 
 occupied by the pole attachment by the sum of the operating expenses and actual 
 capital costs of the public utility attributable to the entire pole, duct, 
 conduit, or right-of-way. Upon compliance with such 
 just and reasonable rates, terms, conditions, and costs, whether established by 
 agreement or by the Commission, a public utility shall 
 permit the attachment of any wire, cable, facility, or apparatus to its poles 
 or pedestals, or the placement of any wire, cable, facility, or apparatus in 
 conduit or duct space owned or controlled by it, by such telecommunications 
 service provider, broadband service provider, or cable 
 television system, provided 
 that the attachment does not interfere, obstruct, 
 or delay the service and operation of the public utility or create a safety 
 hazard.  
 
 
D. Notwithstanding the provisions of subsection C, a public 
 utility providing electric utility service may deny access by a 
 telecommunications service provider, broadband service provider, 
 or cable television system to any pole, duct, conduit, right-of-way, or similar 
 facility owned or controlled, in whole or in part, by such public utility, 
 provided such denial is made on a nondiscriminatory basis on grounds of 
 insufficient capacity or reasons of safety, reliability, or generally 
 applicable engineering principles.  
 
 
E. This section shall not apply to any pole attachments 
 regulated pursuant to 47 U.S.C. §224.  
 
 
F. The Commission is authorized 
 to determine just and reasonable rates, and terms and conditions of service, 
 excluding safety and debt collection, for attachments to electric cooperative 
 poles by telecommunications service providers or cable television systems if, 
 following good faith negotiations to do so, the parties cannot reach agreement 
 thereon; however, the Commission shall not determine rates or terms and 
 conditions for any existing agreement until it expires or is terminated 
 pursuant to its own terms. The terms of an expired or terminated agreement 
 shall continue to govern while good faith negotiations or Commission review 
 pursuant to this section are pending. Such determinations shall be made in 
 accordance with the following:  
 
 
1. Just and reasonable pole 
 attachment rates and terms and conditions of service to be determined by the 
 Commission shall include, without limitation, rearrangement and make-ready 
 costs, pole replacement costs, and all other costs directly related to pole 
 attachments and maintenance, replacement, and inspection of poles or pole 
 attachments, and right of way maintenance essential to pole attachments, 
 provided however, that cost recovery for rearrangement, make-ready and pole 
 replacement shall be addressed in terms and conditions, and shall not be 
 included in annual rental rates;  
 
 
2. In determining pole 
 attachment rates, the Commission shall consider (i) any effect of such rates on 
 the deployment or utilization, or both, of broadband and other 
 telecommunications services, (ii) the interests of electric cooperatives' 
 members, and (iii) the overall public interest;  
 
 
3. The Commission may develop 
 and utilize alternative forms of dispute resolution for purposes of addressing 
 disputes (i) arising under this subsection and (ii) falling within the scope of 
 the Commission's authority established hereunder;  
 
 
4. The Commission is 
 authorized to assess reasonable application fees to recover appropriate 
 Commission costs of proceedings arising under this subsection; and  
 
 
5. The Commission is 
 authorized to develop, if necessary, rules and regulations, including a 
 definition of good faith negotiations, to implement this section. In implementing the provisions of this section that 
 incorporate terms and concepts used or defined in 
 47 U.S.C. §224, the Commission shall rely on interpretations 
 of such terms and concepts by the Federal Communications Commission and by the federal 
 judiciary.  
 
 
 
 
 
  
 
 
 
 
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