Newfoundland Power ,nc.
55 Kenmount Road POWER PO Box 8910 A FORTIS COMFANY St. John's, Newfoundland A1B3P6 HAND DELIVERED Business: (709) 737-5600 Facsimile: (709) 737-2974 June 6, 2001 vvvwv.newfbundlandpower.com
Board of Commissioners of Public Utilities P.O. Box 21040 80- J u, v 120 Torbay Road St. John's, NF A1A 5B2 JUN 6 200! Attention: Ms. Cheryl Blundon Board Secretary . JOHN'S
Ladies & Gentlemen:
Re: Newfoundland Power Inc's ("the Applicant") Application to acquire the Support Structures of Aliant Telecom Inc. located in the Applicant's service territory
Enclosed please find 15 copies each of the Applicant's Responses to Information Requests NLH 10.0 through 13.0.
In addition, we have enclosed 15 copies of the Response to Information Request NLH 8.0 (1st Revision). The revision was necessary to correct a mistaken reference to another Response in the last paragraph of the original version.
For convenience we have provided the Responses on 3 hole punched paper.
We trust the enclosed are found to be in order.
Yours very truly,
Peter Alteen Corporate Counsel and Secretary
Enclosure c. Mr. Wayne D. Chamberlain Newfoundland and Labrador Hydro
Mr. Glen D. Belbin Hey wood, Kennedy, Belbin Telephone: (709) 737-5859 Website: http://www.newfoundlandpower.com Fax: (709) 737-2974 Email: palteen @ newfoundlandpower. com Newfoundland Power Inc.
55 Kenmount Road POWER PO Box 8910 A FORTIS COMPANY St. John's, Newfoundland A1B3P6 HAND DELIVERED Business: (709) 737-5600 Facsimile: (709) 737-2974 www.newfoundlandpower.com
June 5, 2001
Board of Commissioners of Public Utilities P.O. Box 21040 120 Torbay Road St. John's, NF A1A 5B2 JUN
Attention: Ms. Cheryl Blundon Board Secretary , ^«J Ladies & Gentlemen:
Re: Newfoundland Power Inc.'s ("the Applicant") Application to acquire the Support Structures of Aliant Telecom Inc. located in the Applicant's service territory
Enclosed please find 15 copies each of the Applicant's Responses to Information Requests NLH 5.0 through 9.0 and PUB 16.0.
For convenience we have provided the Responses on 3 hole punched paper.
We trust the enclosed are found to be in order.
Yours very truly,
Peter Alteen Corporate Counsel and Secretary
Enclosure c. Mr. Wayne D. Chamberlain Newfoundland and Labrador Hydro
Mr. Glen D. Belbin Heywood, Kennedy, Belbin
Telephone: (709) 737-5859 Website: http://www.newfoundlandpower.com Fax: (709) 737-2974 Email: [email protected] Newfoundland Power Inc. NEWFOUNDLAND- 55 Kenmount Road POWER PO Box 8910 A FORTIS COMFANY St. John's, Newfoundland A1B3P6 HAND DELIVERED Business: (709) 737-5600 Facsimile: (709) 737-2974 www.newfoundlandpower.com
May 30, 2001
Board of Commissioners of Public Utilities P.O. Box 21040 120 Torbay Road St. John's, NF Al A 5B2
Attention: Ms. Cheryl Blundon Board Secretary
Ladies & Gentlemen:
Re: Newfoundland Power Inc.'s ("the Applicant") Application to acquire the Support Structures of Aliant Telecom Inc. located in the Applicant's service territory.
Enclosed please find 15 copies each of the Applicant's Responses to Information Requests NLH 1.0 through 4.0.
For convenience we have provided the Responses on 3 hole punched paper.
We trust the enclosed are found to be in order.
Yours very truly,
Peter Alteen Corporate Counsel and Secretary
Enclosures c. Mr. Wayne D. Chamberlain Newfoundland and Labrador Hydro
Mr. Glen D. Belbin Heywood, Kennedy, Belbin
Telephone: (709) 737-5859 Website: http://www. newfoundlandpower. com Fax: (709) 737-2974 Email: [email protected]
NLH-1 Page 1 of 17
Q. NLH 1.0
1.1 Please provide the number of joint use poles and non-joint use poles, organized by the community in which they are located or to which they are closest in proximity, for all communities inside the Applicant's service territory.
1.2 Please provide the number of joint use poles and non-joint use poles, organized by the community in which they are located or to which they are closest in proximity, for all poles outside the Applicant's service territory that are to be transferred to the Applicant (or to 11003 Newfoundland Inc.) under the Support Structures Purchase Agreement.
A.
1.1 The number of joint use and non-joint use poles in Newfoundland Power's service territory organized by community as found in the joint use database is set out in Table 1 below. A review of the limitations of detailed data such as that contained in Table 1 can be found in the General Overview contained in Response to Information Request PUB 6.0.
Table 1
Non Joint Use Joint Use Tota
CAPPAHAYDEN 20 3 23 RENEWS 157 1 158 FERMEUSE 190 3 193 KINGMANS COVE 44 1 45 PORT KIRWAN 71 1 72 AQUAFORTE 61 2 63 FERRYLAND 207 5 212 CALVERT 119 4 123 CAPE BROYLE 284 16 300 ADMIRALS COVE 44 0 44 BRIGUS SOUTH 46 0 46 TORS COVE 193 151 344 BAULINE 36 0 36 ST. MICHAELS 12 2 14 BURNT COVE 30 6 36 MOBILE 74 1 75 WITLESS BAY 352 8 360 GALLOWS COVE 5 0 5 NLH-1 Page 2 of 17
Non Joint Use Joint Use Total
BAY BULLS 353 22 375 GOULDS 1167 99 1266 PETTY HARBOUR 30 53 83 MADDOX COVE 60 2 62 KILBRIDE 569 21 590 MOUNT PEARL 1936 296 2232 ST. JOHN'S 5902 1824 7726 HOLYROOD 365 35 400 SEAL COVE 156 2 158 UPPER GULLIES 137 0 137 KELLIGREWS 217 8 225 FOXTRAP 256 8 264 LONG POND 279 5 284 MANUELS 208 5 213 CHAMBERLAINS 318 53 371 TOPSAIL 202 8 210 PARADISE 1279 64 1343 CAPE ST. FRANCES 1 0 1 POUCH COVE 254 51 305 BAULINE 75 1 76 SHOE COVE 56 6 62 FLATROCK 310 6 316 TORBAY 735 5 740 LOGY BAY 163 22 185 OUTER COVE 81 4 85 MIDDLE COVE 31 0 31 WEDGEWOOD PK 67 0 67 WABANA 1773 75 1848 LANCE COVE 582 15 597 PORTUGAL COVE 711 2 713 ST. PHILLIPS 735 2 737 ST. THOMAS 105 0 105 LONG COVE 48 99 147 NORMAN'S COVE 74 21 95 CHAPEL ARM 231 217 448 LONG HARBOUR 29 74 103 MT. ARLINGTON HEIGHTS 13 1 14 NLH-1 Page 3 of 17
Non Joint Use Joint Use Tota
BRANCH 181 180 361 POINT LANCE 13 1 14 ST. BRIDES 140 12 152 CUSLETT 55 102 157 ANGEL'S COVE 40 57 97 PATRICK'S COVE 75 30 105 SHIP COVE 71 65 136 BIG BARRASWAY 57 92 149 LITTLE BARRASWAY 78 131 209 SOUTH EAST PLACENTIA 263 13 276 POINT VERDE 136 15 151 PLACENTIA 111 11 122 JERSEYSIDE 140 26 166 FRESHWATER 107 110 217 ARGENTIA 122 46 168 FERNDALE 26 5 31 DUNVILLE 403 73 476 FOX HARBOUR 115 1 116 SHIP HARBOUR 45 5 50 HOPE HALL 109 11 120 GREEN'S HARBOUR 260 18 278 DILDO 159 4 163 NEW HARBOUR 224 4 228 SOUTH DILDO 52 5 57 OLD SHOP 56 2 58 BLAKETOWN 180 6 186 WHITBOURNE 359 34 393 MARKLAND 191 126 317 HARICOTT 190 9 199 COLLINET 111 1 112 NORTH HARBOUR 108 0 108 MOUNT CARMEL 49 1 50 ST. CATHERINES 257 5 262 MITCHELLS BROOK 13 0 13 FOREST FIELD 10 1 11 NEW BRIDGE 39 4 43 ST. JOSEPHS 96 0 96 ODONNELLS 25 5 30 NLH-1 Page 4 of 17
Non Joint Use Joint Use Tota
ADMIRALS BEACH 22 2 24 MALL BAY 11 0 11 RIVERHEAD 72 6 78 ST. MARY'S 106 9 115 POINT LAHAYE 74 0 74 GASKIERS 37 2 39 ST. VINCENTS 59 2 61 ST. STEPHENS 34 4 38 PETERS RIVER 98 26 124 ST. SHOTTS 19 0 19 TREPASSEY 210 50 260 BISCAY BAY 42 1 43 PORTUGAL COVE SOUTH 97 5 102 FAIRHAVEN 84 179 263 THORNLEA 29 61 90 BELLEVUE 111 47 158 CHANCE COVE 38 40 78 BAY DE VERDE 477 8 485 RED HEAD COVE 76 11 87 OLD PERLICAN 234 68 302 DANIELS COVE 24 0 24 GRATES COVE 214 2 216 CAPLIN COVE 120 4 124 LOW POINT 69 0 69 LOWER ISLAND COVE 138 0 138 JOBS COVE 85 3 88 BURNT POINT 45 2 47 GULL ISLAND 75 3 78 NORTHERN BAY 147 1 148 OCHER PIT COVE 85 0 85 WESTERN BAY 422 2 424 ADAMS COVE 139 0 139 BLACKHEAD 51 0 51 BROAD COVE 166 0 166 SMALL POINT 33 1 34 KINGSTON 15 0 15 PERRYS COVE 100 8 108 SALMON COVE 171 15 186 NLH-1 Page 5 of 17
Non Joint Use Joint Use Tota
VICTORIA 429 97 526 FRESHWATER 84 3 87 CARBONEAR 907 54 961 BRISTOL'S HOPE 72 1 73 HARBOUR GRACE 395 44 439 RIVERHEAD 185 5 190 BRYANTS COVE 136 2 138 TILTON 116 4 120 THICKETT 49 0 49 UPPER ISLAND COVE 221 6 227 BISHOP'S COVE 94 1 95 SPANIARD'S BAY 471 17 488 BAY ROBERTS 728 31 759 SHEARSTOWN 163 2 165 BUTLERVILLE 64 0 64 BARNEED 76 0 76 PORT DE GRAVE 99 0 99 NORTH RIVER 169 0 169 CLARKES BEACH 192 5 197 SOUTH RIVER 159 2 161 MACKINSONS 39 1 40 JUNIPER STUMP 22 0 22 TURK'S WATER 47 1 48 ROACHES LINE 192 3 195 CUPIDS 253 23 276 BRIGUS 245 2 247 GEORGETOWN 99 0 99 MARYSVAYLE 117 2 119 COLLIERS 287 3 290 CONCEPTION HARBOUR 311 9 320 BRIGUS JUNCTION 55 58 113 KTTCHUSES 69 0 69 BACON COVE 54 70 124 AVONDALE 198 38 236 HARBOUR MAIN 113 4 117 CHAPEL'S COVE 123 2 125 HOLYROOD 157 27 184 SALMONIER LINE 144 2 146 NLH-1 Page 6 of 17
Non Joint Use Joint Use Tots
LEAD COVE 44 0 44 SffiLEYS COVE 65 3 68 BROWNSDALE 211 0 211 NEW MELBOURNE 75 3 78 NEW CHELSEA 68 0 68 HANTS HARBOUR 187 0 187 WINTERTON 168 19 187 TURKS COVE 113 2 115 NEW PERLICAN 94 9 103 HEARTS CONTENT 142 152 294 HEARTS DESIRE 90 64 154 HEARTS DELIGHT 170 3 173 ISLINGTON 65 21 86 CAVENDISH 116 6 122 WHITEWAY 75 26 101 GRAND BEACH 2 0 2 GRAND BANK 199 18 217 FORTUNE 139 5 144 POINT MAY 194 3 197 LAM ALINE 44 4 48 ALLENS ISLAND 17 0 17 POINT AU GAUL 25 0 25 TAYLOR'S BAY 0 1 1 LORDS COVE 63 2 65 LAWN 100 11 111 ST. LAWRENCE 194 11 205 LITTLE ST. LAWRENCE 15 0 15 GARNISH 52 148 200 FRENCHMAN'S COVE 16 2 18 EPWORTH 177 1 178 CORBIN 14 0 14 LITTLE SALMONBER 57 6 63 BURIN 82 8 90 COLLINS COVE 4 10 14 SHIP COVE 14 0 14 BURIN BAY 39 0 39 NLH-1 Page 7 of 17
Non Joint Use Joint Use Tota
BULLS COVE 7 10 17 PORT AU BRAS 1 0 1 MORTIER 7 4 11 FOX COVE 1 0 1 BURIN BAY ARM 28 1 29 SALT POND 49 39 88 LEWINS COVE 35 11 46 SALMONIER 1 0 1 MARYSTOWN 299 139 438 LITTLE BAY 62 5 67 BEAU BOIS 1 0 1 WINTERLAND 43 72 115 MOORING COVE 54 2 56 SPANISH ROOM 80 2 82 ROCK HARBOUR 2 1 3 JEAN DE BABE 22 0 22 TERRENCEVILLE 22 29 51 GRAND LE PIERRE 8 3 11 JACQUES FONTAINE 5 34 39 ST. BERNARDS 6 1 7 BAT L'ARGENT 66 93 159 LITTLE BAY EAST 4 17 21 LITTLE HARBOUR EAST 0 4 4 HARBOUR MILLE 6 16 22 BOAT HARBOUR WEST 129 30 159 BROOKSIDE 40 1 41 PARKERS COVE 18 21 39 BAINE HARBOUR 9 3 12 RUSHOON 92 41 133 RED HARBOUR 8 0 8 ENGLISH HARBOUR EAST 1 4 5 LITTLE HARBOUR EAST 6 104 110 SOUTHERN HARBOUR 62 139 201 ARNOLD'S COVE 114 159 273 ARNOLD'S COVE STATION 5 889 894 COME BY CHANCE 89 361 450 NLH-1 Page 8 of 17
Non Joint Use Joint Use Tota
SUNNYSIDE 53 49 102 GOOBIES 85 143 228 NORTH HARBOUR 37 21 58 GARDEN COVE 70 42 112 SWIFT CURRENT 99 104 203 NORTH WEST BROOK 37 93 130 QUEEN'S COVE 101 26 127 LONG BEACH 31 85 116 HODGE'S COVE 14 4 18 CAPLESf COVE 5 34 39 LITTLE HEART'S EASE 57 129 186 BUTTER COVE 2 10 12 GOOSEBERRY COVE 6 11 17 SOUTHPORT 4 19 23 IVANY'S COVE 2 0 2 HILLV1EW 56 210 266 HATCHET COVE 41 52 93 ST. JONES WITHIN 53 12 65 ADEYTOWN 7 31 38 DEEP BIGHT 60 27 87 CLARENVILLE 416 243 659 SHOAL HARBOUR 90 74 164 RANDOM HEIGHTS 6 43 49 ELIOTT'S COVE 29 82 111 SNOOK'S HARBOUR 31 34 65 ASPEY BROOK 27 19 46 WEYBRIDGE 24 50 74 LADY COVE 13 6 19 HICKMAN'S HARBOUR 73 157 230 BRITANNIA 13 18 31 LOWER LANCE COVE 20 0 20 PETLEY 10 1 11 MILTON 55 126 181 GEORGE'S BROOK 48 94 142 HARCOURT 41 107 148 GIN COVE 4 23 27 MONROE 15 27 42 WATERVBLLE 4 17 21 NLH-1 Page 9 of 17
Non Joint Use Joint Use Tote
CLIFTON 7 124 131 BURGOYNE'S COVE 15 9 24 MORLEY'S SIDING 36 0 36 LETHBRIDGE 119 96 215 BLOOMFIELD 79 112 191 MUSGRAVETOWN 145 267 412 CANNING'S COVE 40 40 80 BUNYAN'S COVE 59 63 122 PORT BLANDFORD 102 192 294 CHARLOTTETOWN 28 6 34 BROOKLYN 165 6 171 PORTLAND 125 2 127 JAMESTOWN 170 3 173 WINTER BROOK 71 9 80 CHARLESTON 144 173 317 SWEET BAY 63 0 63 SOUTHERN BAY 112 146 258 PRINCETON 88 117 205 SUMMER VILLE 24 76 100 PLATE COVE WEST 25 58 83 PLATE COVE EAST 19 19 38 OPEN HALL 41 17 58 RED CLIFF 40 15 55 TICKLE COVE 44 16 60 KING'S COVE 35 132 167 DUNTARA 55 48 103 KEELS 64 2 66 STOCK COVE 20 29 49 KNIGHT'S COVE 27 27 54 UPPER AMHERST COVE 27 24 51 MIDDLE AMHERST COVE 39 26 65 LOWER AMHERST COVE 6 13 19 NEWMAN'S COVE 13 42 55 BIRCHY COVE 12 164 176 LOCKSTON 16 48 64 TRINITY 43 64 107 GOOSE COVE 29 35 64 NLH-1 Page 10 of 17
Non Joint Use Joint Use Tbta
DUNFIELD 25 74 99 TROUTY 53 110 163 OLD BONAVENTURE 58 1 59 NEW BONAVENTURE 37 2 39 PORT REXTON 125 147 272 TRINITY EAST 27 63 90 CHAMPNEY'S WEST 97 37 134 CHAMPNEY'S EAST 70 0 70 ENGLISH HARBOUR 62 22 84 MELROSE 15 20 35 PORT UNION 40 73 113 CATALINA 106 211 317 LITTLE CATALINA 14 40 54 ELLISTON 36 97 133 MABERLY 52 0 52 BONAVISTA 325 181 506 SPILLARS COVE 13 0 13 TERRA NOVA 74 37 111 TERRA NOVA NATIONAL PARK 256 164 420 GLOVERTOWN 157 375 532 TRAYTOWN 39 65 104 SANDRINGHAM 34 198 232 EASTPORT 71 306 377 SANDY COVE 6 0 6 ST. CHADS 4 4 8 BURNSIDE 40 106 146 HAPPY ADVENTURE 22 2 24 SALVAGE 20 0 20 GAMBO 335 283 618 HARE BAY 126 127 253 DOVER 9 3 12 TRINITY 93 362 455 CENTREVILLE 85 7 92 WAREHAM 57 2 59 INDIAN BAY 17 397 414 NLH-1 Page 11 of 17
Non Joint Use Joint Use Tota
VALLEYFIELD 38 212 250 BADGERS QUAY 32 26 58 POOL'S ISLAND 11 45 56 GREENSPOND 12 0 12 BROOKFEELD 14 49 63 WESLEYVDXE 84 100 184 POUND COVE 67 31 98 TEMPLEMAN 27 24 51 NEWTOWN 138 0 138 CAPE FREELS 39 23 62 LUMSDEN 231 226 457 DEADMAN'S BAY 31 177 208 MUSGRAVE HARBOUR 491 245 736 LADLE COVE 35 28 63 ASPEN COVE 26 27 53 CARMANVILLE SOUTH 20 1 21 CARMANVILLE 252 180 432 NOGGIN COVE 31 46 77 FREDERICKTON 11 63 74 DAVIDSVILLE 18 196 214 MAINPOINT 78 4 82 GANDER BAY 61 2 63 GANDER 425 623 1048 BENTON 52 37 89 APPLETON 50 85 135 GLENWOOD 102 155 257 CLARKE'S HEAD 72 163 235 WINGS POINT 50 0 50 VICTORIA COVE 36 15 51 RODGERS COVE 55 12 67 HORWOOD 45 165 210 STONEVILLE 120 0 120 PORT ALBERT 40 1 41 BOYDS COVE 80 160 240 STRONGS ISLAND 0 49 49 SUMMERFORD 128 360 488 COTTLE'S ISLAND 19 97 116 VIRGIN ARM 33 21 54 NLH-1 Page 12 of 17
Non Joint Use Joint Use Tots
CARTER'S COVE 7 0 7 CHANCEPORT 8 0 8 BRIDGEPORT 11 58 69 MORTONS HARBOUR 22 89 111 WHALES GULCH 4 0 4 TEZZARD'S HARBOUR 24 131 155 FAIRBANKS EAST 7 25 32 HILLGRADE 29 206 235 NEWVELLE 76 3 79 INDIAN COVE 14 12 26 MERRITS HARBOUR 16 4 20 SALT HARBOUR 33 30 63 HERRING NECK 32 92 124 TOO GOOD ARM 52 52 104 GREEN COVE 16 0 16 PIKES ARM 42 0 42 COBBS ARM 67 0 67 BLACK DUCK COVE 37 4 41 KETTLE COVE 15 73 88 BAYVIEW 20 76 96 TWILLINGATE 272 66 338 LITTLE HARBOUR 20 0 20 PURCELL'S HARBOUR 15 0 15 DURRELLS 38 0 38 CROW HEAD 24 1 25 RAGGED POINT 4 0 4 FORTUNE HARBOUR 3 0 3 COTTRELL'S COVE 20 6 26 POINT OF BAY 75 0 75 PHILLIPS HEAD 12 0 12 NORTHERN ARM 112 77 189 LEADING TICKLES 58 20 78 GLOVERS HARBOUR 5 0 5 POINT LEAMINGTON 176 8 184 PLEAS ANTVIEW 8 0 8 BOTWOOD 340 170 510 NLH-1 Page 13 of 17
Non Joint Use Joint Use Tota
PETERVIEW 100 25 125 BISHOP FALLS 389 194 583 GRAND FALLS 1443 510 1953 WINDSOR 13 1 14 RED CLIFF 4 0 4 NORRIS ARM 19 349 368 NORRIS ARM NORTH 3 7 10 NOTRE DAME JUNCTION 34 106 140 LEWISPORTE 207 511 718 BROWN'S ARM 9 167 176 PORTERVILLE 4 0 4 LAURENCETON 3 7 10 STANHOPE 7 1 8 EMBREE 22 6 28 MASONS COVE 1 0 1 LITTLE BURNT BAY 4 2 6 MICHAEL'S HARBOUR 9 57 66 CAMPBELLTON 35 256 291 LOON BAY 16 96 112 NEWSTEAD 9 8 17 COMFORT COVE 14 0 14 BAYTONA 4 9 13 BIRCHY BAY 33 148 181 BUCHANS 88 40 128 BUCHANS JUNCTION 12 57 69 MILLERTOWN 52 43 95 BADGER 27 184 211 SPRINGDALE 77 153 230 BAIE VERTE JUNCTION 4 0 4 SHEPPARDSVILLE 1 1 2 SANDY POINT 4 0 4 BAIE VERTE 65 58 123 NLH-1 Page 14 of 17
Non Joint Use Joint Use Tota
SEAL COVE 13 8 21 WILD COVE 1 11 12 LARK HARBOUR 105 1 106 YORK HARBOUR 26 7 33 FRENCHMAN'S COVE 38 3 41 JOHN BEACH 26 19 45 BENOnS COVE 109 12 121 HALFWAY POINT 31 6 37 MT. MORRIAH 66 5 71 CORNER BROOK 2288 382 2670 HUGHES BROOK 40 1 41 MASSEY DRIVE 111 7 118 IRISH TOWN 147 8 155 SUMMERSIDE 216 0 216 MEADOWS 202 6 208 GELLAMS 157 1 158 MOVERS 196 23 219 COX'S COVE 166 3 169 STEADY BROOK 55 12 67 LITTLE RAPIDS 148 98 246 HUMBER VILLAGE 110 0 110 SOUTH BROOK 13 14 27 PASADENA 419 187 606 PYNNS BROOK 112 123 235 ST. JUDES 49 1 50 SPILLWAY 19 19 38 DEER LAKE 506 85 591 NICHOLS VILLE 90 11 101 REIDVELLE 71 5 76 CORMACK 81 12 93 HOWLEY 50 4 54 GALLANTS 25 5 30 BONNE BAY POND 3 0 3 NLH-1 Page 15 of 17
Non Joint Use Joint Use Tots
MATTIS POINT 85 1 86 BARACHOIS BROOK 11 7 18 STEPHENVILLE CROSSING 310 35 345 BLACK DUCK SIDING 165 1 166 GULLPOND 15 0 15 ST. GEORGES 326 40 366 ROSE BLANCHE 71 7 78 BURNT ISLAND 325 77 402 ISLE AUX MORTS 347 160 507 MARGAREE & FOX ROOST 48 0 48 PORT AUX BASQUES 550 54 604 CAPE RAY 80 2 82 TOMPKINS 12 0 12 ST. ANDREWS 90 6 96 LOCH LOMOND 17 0 17 SEARSTON 10 0 10 UPPER FERRY 18 1 19 OTIEGANS 53 3 56 GREAT CODROY 16 1 17 MELLVILLE 38 0 38 WOODVILLE 9 0 9 CODROY 11 0 11 DOYLES 10 5 15 SOUTH BRANCH 20 2 22 COLD BROOK 64 1 65 PORT AU PORT 489 73 562 POINT AU MAL 148 4 152 FOX ISLAND RIVER 83 1 84 PORT AU PORT WEST 215 3 218 AGUATHUNA 96 2 98 BOSWARLOS 178 6 184 FELIX COVE 120 1 121 CAMPBELLS CREEK 154 50 204 ABRAHAMS COVE 37 2 39 PICCADILLY 108 2 110 NLH-1 Page 16 of 17
Non Joint Use Joint Use Tots
WEST BAY 97 6 103 LOURDES 269 4 273 WINTERHOUSE 111 0 111 BLACK DUCK BROOK 137 0 137 THREE ROCK COVE 210 1 211 MAINLAND 63 0 63 SHIP COVE 92 0 92 LOWER COVE 131 22 153 SHEARS COVE 144 5 149 MARCHS POINT 56 0 56 RED BROOK 4 0 4 DEGRAS 74 1 75 CAPE ST. GEORGE 25 0 25 KIPPENS 200 8 208 STEPHENVILLE 570 191 761 COLD BROOK 95 0 95 NOEL'S BROOK 74 21 95 FLAT BAY 422 6 428 ST. THERESA'S 5 0 5 CARTYVILLE 60 5 65 ROBINSON'S 51 4 55 HEATHERTON 60 4 64 MCKAYS 20 24 44 JEFFERY'S 30 10 40 ST. DAVIDS 84 18 102 ST. FINTANS 28 0 28 LOCH LEVEN 19 0 19 HIGHLANDS 28 4 32 NLH-1 Page 17 of 17
1.2 Detail on the number of joint use and non-joint use poles outside Newfoundland Power's service territory organized by community is not relevant to the proceeding nor is it necessary to a satisfactory understanding of the matters to be considered by the Board as required by Section 14(1) of the Board of Commissioners of Public Utilities Regulations, 1996. sa NLH-2 Page 1 of 1
Q. NLH 2.0
Please refer to Exhibit 9 and Exhibit 10, page 8 of 8, Table 3, filed by the Applicant. The recovery rate of $32 has been calculated based on the current proportions of joint use poles (85%) relative to non-joint use poles (15%). Please provide a sensitivity analysis for the following cases, using the proposed $32 recovery rate:
(a) A shift in proportions to 90% joint use, 10% non-joint use. (b) A shift in proportions to 80% joint use, 20% non-joint use.
A. The sensitivity analyses requested are found in Table 1.
The shift in proportions for both cases requested were presumed to occur over a 10 year period ending in 2010. This is consistent with longer term trends in proportional composition which have been experienced. In the 10 year period ending in 2000, the proportion of non-joint use poles was reduced from 20% to 15%.
Both sensitivity analyses were performed in accordance with the methodology set out in Exhibit 10.
In both sensitivity analyses performed, the net present value of cashflows remained in excess of $1,000,000 which indicates significant customer benefit in each case.
Table 1
Sensitivity Analysis ($000s)
Contribution Annual Net as Percentage NPV Cash Contribution of Customer Flow to Revenue Rates
Base Case 1,624 544 0.16
a) Increase non-joint use pole percentage to 20% and reduce joint use pole percentage to 80% 1,729 570 0.17
b) Reduce non-joint pole ownership to 10% and increase joint use pole ownership to 90% 1,323 476 0.14 I r NLH-3 Page 1 of 2
Q. NLH 3.0
Please indicate the reasons why the Applicant has decided to assign its rights and exclude from this Application the poles that are located outside its service areas.
A. Newfoundland Power's decision to assign its rights to support structures outside of its service territory was based upon a practical evaluation of circumstances existing in April 2001.
The Support Structures Purchase Agreement executed on March 1st, 2001 between Aliant Telecom and Newfoundland Power gave Newfoundland Power the right to purchase all of Aliant Telecom's support structures on the island of Newfoundland. Subsequent to March 1st, 2001 Newfoundland Power was made aware that, under an existing agreement, Newfoundland and Labrador Hydro ("Hydro") has a first right to purchase those poles in Hydro's service territory which were jointly used by Aliant Telecom and Hydro for a period of 6 months following the giving of notice. This created a degree of legal uncertainty with respect to Newfoundland Power's rights under the Support Structures Purchase Agreement insofar as poles in Hydro's service territory were concerned.
This legal uncertainty had practical ramifications. The purchase of the support structures under the Support Structures Purchase Agreement by Newfoundland Power is subject to Newfoundland Power's performance of due diligence with respect to the assets being purchased. For Newfoundland Power to conduct the necessary due diligence inquires with respect to support structures in Hydro's service territory would require Newfoundland Power to discuss and negotiate matters relating to these structures with third parties, including Hydro and CATV operators and contractors operating in Hydro's service territory. It was Newfoundland Power's assessment that such discussions would be relatively time consuming and difficult and would clearly jeopardize a closing of the support structure purchase by mid year 2001 as was agreed upon between Newfoundland Power and Aliant.
The mid year 2001 closing is important to Newfoundland Power for reasons of business certainty. The effective date of the transactions contemplated in the Application is January 1st, 2001. The consents and approvals of third parties such as the Board are necessary to conclude this transaction, however, the closing of the transaction requires significant further work to be completed following acquisition of the Board's approval.
The Aliant Telecom poles located outside Newfoundland Power's service territory represent in the order of $3,000,000 or approximately 6% of the total investment contemplated by the Support Structures Purchase Agreement. The poles jointly used by both Aliant Telecom and Hydro represent in the order of 3% of the total investment.
Newfoundland Power determined that the efficiency gains to be realized for the benefit of its customers should not be delayed or put at risk by matters concerning such a small NLH-3 Page 2 of2
proportion of the total assets involved in the proposed transactions. Accordingly, in April 2001, Newfoundland Power decided to assign its rights under the Support Structures Purchase Agreement to purchase the support structures outside of its service territory to an affiliate company. This effectively avoids the risk of delays and jeopardy to closing created by the issues related to the support structures outside Newfoundland Power's service territory.
11003 Newfoundland Inc., a corporation not regulated by the Board, has been permanently assigned the rights under the Support Structures Purchase Agreement to acquire those Aliant Telecom's support structures outside of Newfoundland Power's service territory.
The course undertaken by Newfoundland Power was the most effective way to ensure that the majority of consumer benefits which the proposed transaction provides can be realized in a timeframe consistent with the agreement between Aliant Telecom and Newfoundland Power with respect to closing in mid-2001. Ed i NLH-4 Page 1 of 1
Q. NLH 4.0
On page 3 of the Pre-filed Direct Evidence of the Applicant and in Exhibit 4 thereof, the Applicant references a Canadian Joint Use Survey conducted by it with respect to the practice of other electric distribution utilities. Please explain why Newfoundland and Labrador Hydro was not surveyed and secondly, why Newfoundland and Labrador Hydro was not referred to or referenced in any manner with respect to the said survey.
A. Section 4 of the Electrical Power Control Act, 1994 (the "EPCA") requires that, in carrying out its duties and exercising its powers under the EPCA or under the Public Utilities Act, the Board shall apply tests that are consistent with generally accepted sound public utility practice. It is Newfoundland Power's practice in proceedings before the Board to present broad information on Canadian public utility practice where it believes such information would be of assistance to the Board in carrying out its responsibilities under the legislation.
The survey carried out by Newfoundland Power of joint use practices between Canadian electric distribution utilities and telecommunications utilities was intended to provide the Board with a broad overview of Canadian public utility practice in respect of the joint use of support structures. In particular, the survey sought information on relative pole ownership where the electric and telecommunications utilities shared ownership of the poles in their service territories and on the range of attachment fees where joint use arrangements were based principally on pole rentals.
Because the joint use arrangement between Newfoundland and Labrador Hydro and Aliant was understood by Newfoundland Power to be broadly similar to the existing arrangement between Newfoundland Power and Aliant, it was Newfoundland Power's judgment that information with respect to Newfoundland and Labrador Hydro's joint use arrangements would not materially add to the Board's understanding of the broad range of Canadian joint use practice. Further, it was presumed that the Board is generally aware of the joint use practices of Newfoundland and Labrador Hydro. I NLH-5.0 Page 1 of 4
Q. NLH 5.0
5.1 Provide a copy of the original survey that was sent to Canadian electric distribution utilities as referenced at page 3 of the Applicant's pre-filed Evidence included with the Application and Exhibit 4 thereof.
5.2 Provide a copy of the list of the 14 electric distribution utilities that were surveyed as referenced in 5.1 thereof.
5.3 Provide a copy of the original responses received from the 12 electric distribution utilities that responded to the survey as referenced in 5.1 thereof. The Applicant may delete any reference to the responding utility or any other such information that may identify specifically the identify of the responding utility in order to address the confidentiality concern of the respondents that identified such a concern.
5.4 Provide a copy of any other information or communications that were exchanged between the Applicant and the responding utilities pertaining to the survey as referenced in 5.1 hereof.
A.
5.1 Listed below are the questions contained in the original telephone survey of electric distribution utilities as referenced at page 3 of the Applicant's prefiled evidence.
1. Do you share poles with the telco? - are the poles jointly or separately owned - if separately owned, what is the ownership ratio - can you provide actual number of each type of pole joint use single use (electric) single use (telco)
2. Is there a rental charge per pole or a sharing of pole costs arrangement?
3. If a rental charge, can you provide the number?
4. If a sharing of costs, how is it determined?
5. Who benefits from the CATV attachment revenue? Both utilities or telco only.
6. What is ratio of poles to services for the electric utility?
7. Do you provide engineering services to the telco?
8. Do you provide any single use poles for the telco? (asked subsequently for Response to Information Request PUB 5.0). NLH-5.0 Page 2 of 4
5.2 Listed below are the names of the fourteen electric distribution utilities that were surveyed as referenced in 5.1.
Name of Utility
Nova Scotia Power Incorporated
Maritime Electric Company Limited
New Brunswick Power Commission
Hydro Quebec
Hydro One Networks Inc. (formerly Ontario Hydro)
Toronto Hydro
Manitoba Hydro-Electric Board
Saskatchewan Power Corporation
Utilicorp Networks Canada (formerly TransAlta distribution assets)
Canadian Utilities Limited (formerly Alberta Power)
EPCOR Utilities Inc. (formerly Edmonton Power)
ENMAX Corporation (formerly Calgary Power)
West Kootenay Power Ltd.
BC Hydro NLH-5.0 Page 3 of 4
5.3 Table 1 below contains the responses received from the twelve electric distribution utilities that responded to the survey. To preserve anonymity, the responses to Question 1 revealing numbers and types of poles are not provided. All respondent electric distribution utilities share poles with telecommunication providers.
Table 1
Responses to Electric Distribution Utility Survey
Question 2 Questions 3 and 4 Question 5 Question 6 Question 7 Question 8 Type of Ratio CATV CATV Ratio Engineering Single-use Respondents Arrangement or Rate Rate Revenue Poles/Services Services Telco Poles
Utility 1 Pole Charge $15.36 $9.60 Both na No No
Utility 2 Cost Sharing 60/40 $15.86 Both 0.58 Install Poles No
Utility 3 Pole Charge $15.89 $15.89 Both na No No
Utility 4 Pole Charge $6.42 $6.42 Both na No No
Utility 5 Cost Sharing 60/40 $9.60 Both 0.95 No No
Utility 6 Pole Charge na na Telco 2.80 No No
Utility 7 Cost Sharing 57/43 $9.60 Both 0.92 No No
Utility 8 Pole Charge $36.00 $12.00 Both 0.54 No No
Utility 9 Pole Charge $9.60 $9.60 na na No No
Utility 10 Cost Sharing 61/39 $15.45 Both na No No
Utility 11 Cost Sharing 60/40 $14.90 Both na No No
Utility 12 Pole Charge $10.50 $9.60 Both 4.30 No No
Note: "na" denotes information not available or information not provided by respondent. NLH-5.0 Page 4 of 4
5.4 There was no other information or communications exchanged between the Applicant and the responding utilities pertaining to the survey referenced in 5.1 above. I NLH-6.0 Page 1 of 1
Q. NLH 6.0
6.1 Provide a copy of the existing Joint Use Agreement between the Applicant and Aliant as referenced at page 1 of the Applicant's Pre-filed Evidence included with the Application.
6.2 Provide a copy of the current Statement of Rentals or similar such document that pertains to the existing Joint Use Agreement referenced in 6.1.
6.3 Provide a copy of the most recent Pole Ownership Agreement or similar type document that was in place between the Applicant and Aliant Telecom Inc., or its predecessor company, prior to the filing of the Application or the signing of the Support Structures Purchase Agreement.
A.
6.1 A copy of the existing Joint Use Agreement between Newfoundland Power Inc. (then, Newfoundland Light & Power Co. Ltd.) and Aliant Telecom Inc. (then, Newfoundland Telephone Company Limited) is provided with this Response to Information Request NLH 6.0.
6.2 A copy of the current Statement of Rentals is provided with this Response to Information Request NLH 6.0.
6.3 A copy of the most recent Pole Ownership Agreement between Newfoundland Power Inc. (then, Newfoundland Light & Power Co. Ltd.) and Aliant Telecom Inc. (then, Newfoundland Telephone Company Limited) is provided with this Response to Information Request NLH 6.0. NEWFOUNDLAND TELEPHONE COMPANY LIMITED
AND NEWFOUNDLAND LIGHT AND POWER COMPANY LTD. JOINT USE AGREEMENT
SCHEDULE "A" EFFECTIVE JANUARY 1, 1994 JOINT USE AGREEMENT CONTENTS
ARTICLE TITLE PAGE
Preamble 1 I DEFINITION OF TERMS 3 II TERRITORY AND SCOPE OF AGREEMENT 11 III JOINT USE COMMITTEE 14 IV DEALING WITH PROPERTY 16 V SPECIFICATIONS 17 VI DIVISION OF COSTS 18 >^ VII OWNERSHIP 19 X VIII RENTALS 21 ^ IX PARTIES' RIGHTS WITH RESPECT TO OTHERS 22 X X LIABILITIES & DAMAGES 25 XI DEFAULTS 31 XII IMPOSSIBILITY OF PERFORMANCE 33 XIII ASSIGNMENT OF RIGHTS 35 XIV NOTICES 36 XV INVOICES AND PAYMENTS 38 XVI WAIVER OF TERMS OR CONDITIONS 40 XVII PAYMENT OF TAXES 41 vr XVIII ARBITRATION 42 X XIX TERM OF AGREEMENT 43/L XX REGULATORY IMPACT 45>< XXI MISCELLANEOUS PROVISIONS 48 THIS AGREEMENT made at St. John's, in the Province of Newfoundland as of the 1st day of January, 1994.
BETWEEN; NEWFOUNDLAND TELEPHONE COMPANY LIMITED. a body duly incorporated under the laws of the Province of Newfoundland, having its registered office at the City of St. John's, in the Province of Newfoundland,
hereinafter called "Newfoundland Telephone",
AND: NEWFOUNDLAND LIGHT & POWER CO. LIMITED, a body duly incorporated under the laws of the Province of Newfoundland, having its registered office at the City of St. John's, in the Province of Newfoundland,
hereinafter called the "Power Company",
WHEREAS the Power Company and Newfoundland Telephone desire to continue and expand Joint Use of their respective Poles and Joint Use of Buried Construction when and where Joint Use provides operating advantages and economic benefit to the Parties hereto and their respective customers;
AND WHEREAS the conditions determining the necessity or desirability of Joint Use depend upon the service requirements to be met by each Party including consideration of safety and economy, and each Party should be the sole judge of what the character of its circuits - 2 - should be to meet its service requirements and as to whether or not these service requirements can properly be met by the Joint Use of Poles or Buried Construction;
AND WHEREAS the Administrative Practices attached as Schedule "A" to this Agreement provide for the detailed administration of the Agreement through a Joint Use Committee;
NOW, THEREFORE, THIS AGREEMENT WITNESSETH THAT in consideration of the premises and of the mutual covenants herein contained, the Parties hereby covenant and agree each with the other as follows: - 3 - ARTICLE I DEFINITION OF TERMS
1.01 The following definitions shall apply in this Agreement including the Administrative Practices attached as Schedule "A", unless the context clearly requires otherwise:
ANCHOR means all the physical components, excluding guys, used for anchoring a Pole.
ANNUAL OWNERSHIP PERCENTAGE means the percentage of the total Joint Use Poles which is the annual ownership objective for Newfoundland Telephone as set out in the Collateral Agreement.
APPLICATION means a written request for a Joint Use Permit made in accordance with Sections 4 and 16 of the Administrative Practices.
ATTACHMENT means any cable, wire, material, apparatus or fixture used by either - 4 - Party and attached to a Pole.
BOARD means the Board of Commissioners of Public Utilities of Newfoundland.
BURIED CONSTRUCTION means the trench and/or any underground duct work, in which wires, materials or apparatus of a Party are located.
CATV COMPANY means a company, person or other entity licensed by the CRTC to distribute cable television signals with attachments to the Facilities of either of the Parties to this Agreement.
COLLATERAL AGREEMENT means a collateral agreement entered into by the Parties regarding Joint Use Pole Ownership bearing the date of this Agreement.
CONTROL CABLE means a cable used by the Power Company to transmit system control and data signals. - 5 _ C.S-A. means the Canadian Standards Association.
CRTC means the Canadian Radio-television and"Telecommunications Commission.
FACILITIES means Poles, Anchors, Grounding Systems, Pole Cribs, Buried Construction and related rights-of-way.
GOVERNING BODY means any body having legislative or regulatory powers affecting the Parties and includes the Board, the CRTC, and Federal, Provincial, Municipal or other authority having jurisdiction over highways or other public places, acting under legislative authority to carry out duties in maintaining and improving public highways or other public places.
GROUNDING SYSTEM means the ground rod or ground coil, wire and all physical components required to connect the neutral - 6 - conductor to earth.
JOINT OWNERSHIP RATIO means the ratio of the percentage of total Joint Use Poles owned by the Power Company to the percentage of total Joint Use Poles owned by Newfoundland Telephone.
JOINT USE means the use by both Parties and, in relation to Facilities, means Facilities used by both Parties, in accordance with the terms of this Agreement.
JOINT USE COMMITTEE means the committee defined in Article III of this Agreement.
JOINT USE FILE means the jointly operated and maintained data base used by the Parties as provided in Section 14.07 of the Administrative Practices.
JOINT USE RATIO means the ratio agreed by the Parties as provided in Article VIII of this Agreement. - 7 - JOINT USE REQUEST means the form as provided in SECTION 16 of the Administrative Practices.
LINE CLEARING means the provision of adequate clearance from tree interference for all circuits supported by Joint Use Poles and includes items such as the following: underbrushing, tree removals, cabling or guying of trees, pruning or trimming, application of chemical herbicides, treatment of cuts, and disposal of debris.
OTHERS means persons, firms or corporations who are not a Party.
OWNER means the Party who owns or controls the Facility.
PARTY means a party to this Agreement.
PERMIT means the instrument in writing by which the Owner authorizes Joint Use of a Facility. - 8 -
POLE means a utility pole owned by a Party and used to distribute electrical power or telecommunications signals.
POLE LINE means two or more Poles installed in a sequence to service a particular area.
POLE UNIT means a Facility other than Buried Construction.
POLE TOP EXTENSION means a device attached to the top of a Pole to increase the effective height of the Pole.
REARRANGE/REARRANGEMENT means the removal of Attachments from one position on a Pole and the placing of the same Attachments in another position on the same Pole.
REGION 1 means the territory to which the joint use agreement between the Parties effective January 1, 1988 applied. - 9 -
REGION 2 means all territory, other than Region 1, to which this Agreement applies.
REPLACE/REPLACEMENT means the substitution of a new or different Pole for an existing Pole.
SACRIFICED VALUE means the cost recovered for Poles prematurely displaced as set forth in Section 17 of the Administrative Practices.
STRUCTURAL VALUE means the sale price of Poles and Anchors sold in place as set forth in Section 17 of the Administrative Practices.
SUBSTANDARD POLE means, subject to Section 7.06 (b) (i) , a Joint Use Pole which does not conform to the specifications of Section 19 of the Administrative Practices.
TENANT means the Party making, applying for
or having the permission to make - 10 - Joint Use of a Pole belonging to the other Party.
TRANSFER means the removal of Attachments from one Pole and the placing of the same Attachments on another Pole. - 11 - ARTICLE II TERRITORY AND SCOPE OF AGREEMENT
2.01 The Parties shall, in accordance with this Agreement:
(a) co-operate in the planning, design, installation and maintenance of Facilities for Joint Use with a view to providing maximum economic and service advantages to the customers of both Parties;
(b) continue Joint Use of Facilities which are on the date of this Agreement jointly used by the Parties;
(c) permit the Joint Use of Facilities which are not on the date of this Agreement, jointly used by the Parties;
(d) discontinue the Joint Use of Facilities.
2.02 Joint Use Policy
(a) Each Party agrees to the policy of the Joint Use of Facilities whenever such Joint Use is desirable in the judgment of both Parties. - 12 - (b) Each Party is to determine the requirements of its own service and the character, design and construction of its own Attachments on Joint Use Poles and of its own cables, wires and materials in Joint Use Buried Construction, subject to the provisions and specifications of the Administration Practices in Schedule "A".
(c) Each Party reserves the right to exclude from Joint Use any of its Facilities which in the Party's judgment:
(i) are necessary for its sole use, or
(ii) carry, or are intended to carry, circuits of such character that would make Joint Use of such Facilities undesirable.
2.03 Schedule "A" attached hereto and included as part of this Agreement (hereinafter referred to as the "Administrative Practices") shall be read in conjunction with each of the Articles contained herein, provided that in the event of conflict between any Article and the Administrative Practices, the Article shall prevail. Any additions or amendments thereto shall be subject to the approval of the Parties as outlined in the Administrative Practices and shall have effect from the date specified in the written approval endorsed thereon. - 13 - 2.04 This Agreement is effective within the territories in which both Parties operate and distribute their respective services as of the date hereof and shall cover all Facilities now existing or hereafter constructed or acquired in the above territories or any territories that may be brought under this Agreement by mutual consent.
2.05 All other agreements between the Parties for the Joint Use of Facilities within the territories covered by this Agreement are hereby abrogated and annulled. - 14 - ARTICLE III JOINT USE COMMITTEE
3.01 The Parties shall establish and maintain a liaison committee to be known as the Joint Use Committee, consisting of four members, two of whom shall be appointed by each of the Parties.
3.02 The Joint Use Committee shall:
(a) promote and co-ordinate the planning, design, installation and maintenance of Facilities for Joint Use;
(b) administer the terms and conditions of this Agreement;
(c) consider all matters respecting Joint Use of Facilities and negotiate transactions respecting the institution, continuance or discontinuance of the Joint Use of particular Facilities;
(d) negotiate all questions and problems which come under dispute regarding Joint Use;
(e) initiate such studies, audits, surveys, sampling and other activities as may be necessary to formulate, revise and amend the Administrative Practices; and - 15 - (f) initiate annual reviews and modifications as required by the Administrative Practices for the construction, management, preservation and use of Joint Use Facilities, and the rentals and payments to be made in respect thereof. - 16 - ARTICLE IV DEALING WITH PROPERTY
4.01 Nothing in this Agreement shall limit or affect the rights of the Owner to deal with or dispose of Facilities which are not Joint Use Facilities.
4.02 The Owner may, after giving at least six months prior written notice to the Tenant, discontinue, terminate or otherwise dispose of any of its Joint Use Facilities. Such discontinuance, termination or other disposition of Facilities by the Owner shall not give rise to any liability to the Tenant.
4.03 In the event of discontinuance, termination or disposal of Facilities under Clause 4.02 the Tenant shall, during the six month notice period, have the first right to purchase such Facilities from the Owner at the Structural Value as provided in SECTION 17 - PRICE SCHEDULES. - 17 - ARTICLE V SPECIFICATIONS
5.01 All construction in connection with the Joint Use of Facilities shall, at all times, meet the specifications provided in SECTION 19 - CONSTRUCTION PRACTICES which are to be based on C.S.A. Standards as a minimum, except where the Parties may mutually agree to make trial installations using new techniques and materials.
5.02 Subject to Clause 5.01 above, the character, design and construction of Attachments is solely the responsibility of the Party who owns such Attachments. - 18 - ARTICLE VI DIVISION OF COSTS
6.01 The division of costs for erecting and maintaining Joint Use Facilities shall at all times be equitable to both Parties and shall be determined and borne by the Parties in the manner set forth in the Administrative Practices.
6.02 Any payment made by the Tenant under any of the provisions of this Agreement shall not entitle the Tenant to the ownership of any part of the Facilities for which it has contributed in whole or in part, other than as expressly provided in this Agreement or the Collateral Agreement. - 19 - ARTICLE VII OWNERSHIP
7.01 (a) The Parties agree to work toward a Joint Ownership Ratio equal to the Joint Use Ratio in accordance with the terms of the Collateral Agreement.
(b) There shall be a determination of the number of Joint Use Poles owned by each Party as of December 31 of each year that this Agreement is in force.
(c) The Parties agree that as of December 31st, 1993 the current best estimate of the Ownership of Joint Use Poles is: Poles owned by Power Company 118,482
Poles owned by Newfoundland Telephone 44,972
Total Joint Use Poles 163,454
From these numbers the Joint Ownership Ratio as of December 31st, 1993 was 72.49 % Power Company, 27.51 % Newfoundland Telephone. At any time, this estimate of the Ownership of Joint Use Poles may be adjusted to reflect any better estimate to which both Parties may agree.
7.02 Subject to, and in accordance with, the terms of the
Collateral Agreement, the Parties agree that: - 20 - (a) As of December 31, 1994, the Annual Ownership Percentage for Newfoundland Telephone shall be the percentage of the total Joint Use Poles that it owned as of December 31st, 1993, plus 2%.
(b) The Annual Ownership Percentage for Newfoundland Telephone for each year end after 1994 for which this Agreement is in force, shall be the percentage of the total Joint Use Poles that Newfoundland Telephone owned as of December 31 of the previous year, after any sale under the Collateral Agreement, plus 2% until the Joint Ownership Ratio equals the Joint Use Ratio. At that time, the annual Joint Ownership Ratio shall be maintained equal to the Joint Use Ratio until changed by agreement of the Parties.
7.03 Either Party may from time to time transfer to the other party
the ownership of Joint Use Poles where the Parties agree that
it is desirable.
7.04 Any transfer of ownership of Poles under this Agreement by a duly executed Bill of Sale shall be free and clear of any liens and encumbrances. - 21 - ARTICLE VIII RENTALS
3.01 Until the calendar year following the attainment of a Joint Ownership Ratio of 60% Power Company, 4 0% Newfoundland Telephone, the Parties shall pay rentals as calculated in SECTION 14 - RENTALS.
8.02 During the term of this Agreement, the Joint Use Ratio used to calculate rentals shall be 60% Power Company, 4 0% Newfoundland Telephone.
8.03 Commencing in the calendar year following the attainment of a Joint Ownership Ratio of 60% Power Company, 40% Newfoundland Telephone, no Pole rentals shall be exchanged between the Parties. The Parties shall maintain the Joint Ownership Ratio of 60% Power Company, 40 % Newfoundland Telephone by sharing opportunities to install and installing Joint Use Pole Units or Pole Units projected for Joint Use in the appropriate ratio.
8.04 Payments made by Others for the use of Joint Use Facilities shall be shared in accordance with SECTION 15 - RENTALS FROM OTHERS. - 22 - ARTICLE IX PARTIES7 RIGHTS WITH RESPECT TO OTHERS
9.01 Any rights or privileges granted to Others by the Owner in respect of the use of its Facilities in Region 1 prior to January 1, ISIS, and in Region 2 prior to January 1, 1994, shall not be affected by this Agreement. These rights and privileges shall be deemed to include those contained in an agreement between Unitel Newfoundland and the Power Company dated January 21st, 1994.
9.02 Notwithstanding anything to the contrary contained in this Agreement, either Party may at any time and from time to time grant to Others any rights or privileges with respect to any Facilities which are not Joint Use Facilities.
9.03 Any Pole Unit, which is not a Joint Use Pole Unit and in respect of which rights or privileges have been granted to Others, may at any time be approved for Joint Use, if in the opinion or judgment of the Owner, Joint Use of the Pole Unit will not unduly interfere with the rights or privileges granted to such Others. The Owner may continue any such rights or privileges of Others notwithstanding the fact that the Pole Unit may become a Joint Use Pole Unit.
9.04 The Owner may at any time and from time to time grant to - 23 - Others rights and privileges with respect to any of the Owner's Facilities, provided, however, that in the case of a Joint Use Pole:
(a) The Owner shall not, without the prior written consent of the Tenant, grant any rights or privileges to any Others with respect to any part of the space in which the Tenant has the right to attach its Attachments as provided in SECTION 19 - CONSTRUCTION PRACTICES. If the Owner wishes to grant any rights or privileges to Others with respect to any part of such space on a Joint Use Pole, the Owner shall request approval in writing and shall provide to the Tenant all relevant information and data concerning the rights or privileges which it wishes to grant. The Tenant shall examine the desirability and feasibility of allowing such rights or privileges within such space, and upon the Tenant giving its consent in writing the Owner may then grant such rights or privileges. If the Tenant does not give its consent, the Tenant shall give the Owner written reasons for its refusal, within ninety (90) days of the request for approval.
(b) The Owner shall not grant new rights or privileges to Others for the use of space on its Poles outside the space in which the Tenant has the right to attach its Attachments as provided in SECTION 19 - CONSTRUCTION - 24 - PRACTICES unless such new rights or privileges do not unduly interfere with the rights or privileges of the Tenant.
9.05 The Owner shall ensure that the exercise by Others of rights or privileges granted in Region 1 after January 1, 1979, and in Region 2 after January 1, 1994, in respect of its Joint Use Poles shall be as provided in SECTION 19 - CONSTRUCTION PRACTICES.
9.06 Notwithstanding anything to the contrary in this Agreement, Attachments made by Others as a result of an order by the Board or the CRTC shall be governed by the terms and conditions of such order. - 25 -
ARTICLE X LIABILITIES & DAMAGES
10.01 This Agreement is intended" for the mutual benefit and protection of the Parties and non-conformity therewith shall not create any presumption of fault on the part of either Party in favour of any Others.
10.02 Whenever any liability is incurred by either or both of the Parties for injuries to, or death of any persons, including employees of either Party, or for damage to any property, or for any other damages or injuries, arising out of the construction, installation, presence, or use of Joint Use Facilities under this Agreement, the liability for such damages, as between the Parties, shall be as follows:
(a) Each Party shall be wholly liable for all injury to, or death of any persons, including employees of either Party, or for damage to any property, including the property of either Party, caused solely by its negligence.
(b) Each Party shall be liable for all injury to, or death of
any persons, including employees of either Party, or for
damage to any property, including the property of either - 26 - Party, caused by the negligence of both Parties in the same proportion that its negligence contributed to the injury, death or damage.
(c) In the event that the Parties are unable to agree upon the proportion of liability, the issue of apportionment of liability between the Parties shall be decided by arbitration as provided in ARTICLE XVIII - ARBITRATION. The cost of such arbitration shall be borne by the unsuccessful Party, or if neither Party is successful, the costs shall be borne equally.
(d) In respect of a damage claim which is made against, or affects, both Parties, the Parties agree to use their best efforts to settle the claim upon reasonable terms agreed to by both Parties. In the event that the proportion of liability of each Party has been agreed upon, or decided by arbitration, and the claimant desires to settle upon terms acceptable to one of the Parties but not to the other Party, the following shall apply:
(i) The Party to which the settlement is acceptable may give written notice to the other Party of its willingness to accept the settlement amount.
(ii) If the other Party does not agree to accept the - 27 - settlement within fifteen (15) days after such notice the Party which gave the notice (the "Notice Party") may choose to withdraw from the dispute and the other Party (the "Disputing Party") shall defend the claim. The Notice Party may choose to defend its own position in the dispute.
(iii) Where the amount of the liability of the Parties, as later agreed upon or determined by an independent court or tribunal, is less than the proposed settlement amount, then the Notice Party shall pay to the Disputing Party its proportion of the proposed settlement amount and its proportion of the costs and expenses of the Disputing Party.
(iv) Where the amount of the liability of the Parties, as later agreed upon or determined by an independent court or tribunal, is equal to or greater than, the proposed settlement amount, the Disputing Party shall bear all its own costs and expenses and will reimburse the costs, if any, incurred by the Notice Party after the date of the Notice. The sole responsibility of the Notice Party in that event shall be to pay the - 28 - amount corresponding to its proportion of the proposed settlement amount.
(e) In the adjustment between the Parties hereto of any claim for damages arising hereunder, the liability assumed hereunder by the Parties and the calculation of the amount of any settlement under this Clause 10.02, shall include, in addition to the amounts paid to the claimant, all costs, charges, and expenses incurred by the Parties or either of them in connection therewith which shall include reasonable solicitor's fees on a solicitor and client basis and other costs and expenses incidental to any suit, action, investigation, claim or proceeding. Such adjustment shall be carried out promptly.
(f) Any and all liability arising as the result of either Party's negligence in failing to maintain minimum ground clearances required by the C.S.A. standards or this Agreement shall be borne by the negligent Party or Parties in proportion to the negligence of the Party or Parties. All costs associated with repairing / Replacing Facilities damaged as the result of negligence on the part of either Party in failing to maintain minimum ground clearances required by the C.S.A. standards or this Agreement shall be borne by the negligent Party or Parties in proportion to the negligence of the Party or - 29 - Parties. For the purposes of this Clause 10.02 (f), the Tenant's failure to maintain the clearances for which it is responsible shall not affect the Owner's proportion of liability, if any.
10.03 (a) Subject to Clause 10.02, the Owner shall save, defend, keep harmless and fully indemnify the Tenant from and against any and all losses, costs (including, without limitation, reasonable solicitor's fees on a solicitor and client basis and other costs and expenses incidental to any suit, action, investigation, claim or proceeding) charges, damages, accidents, claims, demands, awards, suits or other proceedings which the Tenant may at any time or times hereafter bear, sustain, suffer, or be put to, by reason of, or on account of injury to or death of any person or persons, or damage to or destruction of any of the property of the Tenant or of any other person, arising out of or in respect of use by or presence of Others on any of the Owner's Poles, as provided in ARTICLE IX - PARTIES' RIGHTS WITH RESPECT TO OTHERS, which were Joint Use Poles prior to the granting of rights or privileges to these Others as provided in ARTICLE IX - PARTIES' RIGHTS WITH RESPECT TO OTHERS, provided, however, that the Tenant shall be responsible for its own negligence and for the negligence of its agents or employees. - 30 - (b) Except as provided in Clause 10.03(a) above, in case of damage to Facilities or Attachments of either Party by Others, each Party is responsible for recovering its own damages. In an emergency, when a Joint Use Pole is Replaced by the Tenant, the Tenant will bill the Owner for work done on behalf of the Owner who, in turn, will bill the person causing the damage for the actual costs.
10.04 Except as provided in this Article X, each Party shall bear its own losses and costs in causes where a claim or demand does not arise from the negligence of the other Party, its agents or employees. - 31 -
ARTICLE XI DEFAULTS
11.01 Where either Party defaults in any of its obligations under this Agreement, the Party not in default may give the Party in default written notice of such default. If such default continues thirty (30) days after notice thereof, the Party not in default may, in addition to any other remedy it may have, forthwith terminate this Agreement as far as it concerns the future granting of Joint Use in such of the Joint Use territories covered by this Agreement as it, in its sole discretion, shall determine, and such termination shall not in any way affect the rights and liabilities of the Parties in any territories where no such termination has occurred and such rights and liabilities in such area shall continue to be governed by the terms of this Agreement provided, however, that nothing contained in this Clause 11.01 shall affect any rights or obligations which either Party may have under The Public Utilities Act, R.S.N. 1990, c.P-47 or the Telecommunications Act, S.C. 1993, c.38.
11.02 (a) Where either Party defaults in the performance of any work which it is obligated to do under this Agreement the Party not in default shall advise the Party in default forthwith by written notice of such default and should - 32 - such default continue for fifteen (15) days after notice thereof, the Party not in default may elect to do such work, and the Party in default shall pay the other Party one-hundred and fifty percent (150%) of the actual cost of the work. For the purpose of ascertaining liability arising out of the work so done, such work shall be deemed to have been completed by the Party in default.
(b) Notice of default under Clause 11.01 may operate as notice of default under this Clause 11.02.
11.03 A default under the Collateral Agreement shall be deemed to be a default under this Agreement, and a default under this Agreement shall be deemed to be a default under the Collateral Agreement. - 33 -
ARTICLE XII IMPOSSIBILITY OF PERFORMANCE
12.01 Where the performance by either of the Parties of any of their respective obligations as contained in this Agreement shall to any extent be prevented, restricted, delayed, or interfered with by reason of any of the following:
(i) war, revolution, civil commotion, riots, acts of public enemies, blockade or embargo, any strike, lockout or other labour difficulty or work stoppage, explosion, epidemic, fire, flood, freeze, severe winter conditions, ice blockage, acts of God or order of any Governing Body having jurisdiction;
(ii) the prohibition, restraint, restriction or prevention from installing, constructing or Replacing Facilities or for making available any portion of any such Facilities by any statute law, by-law, ordinance, regulations, judgement, or by the property rights of Others, or the removal, or threat of removal of any easement,
right-of-way, servitude or other privilege;
then such Party shall, on written notice to the other, be - 34 - excused from the performance of such obligations but only to the extent of the period of such prevention, restriction, delay or interference, provided that the provisions contained in this Article shall not apply to the obligations of such Party to pay the amounts required to be paid to the other Party in the manner and at the time provided in this Agreement. The foregoing notwithstanding neither Party shall be liable to pay rental fees or charges for any period during which and to the extent that such Party is prevented from using the other Party's Facilities by reason of the Owner of such Facilities being unable to perform any of its obligations under this Agreement for any reason whatsoever. - 35 -
ARTICLE XIII ASSIGNMENT OF RIGHTS
13.01 Except as otherwise provided in this Agreement, neither Party shall assign or otherwise dispose of this Agreement, or any of its rights or interests hereunder in any of the Joint Use Facilities or any Attachments to Others without the written consent of the other Party which shall not be unreasonably withheld, provided, however, that nothing herein contained shall prevent or limit the right of either Party to mortgage any or all of its property, rights, privileges and franchises, ( or lease or transfer any of them to another corporation organized for the purpose of conducting a business of the same general character as that of such Party, or to enter into any merger or consolidation and in the case of the foreclosure of such mortgage, or in the case of such lease, transfer, merger or consolidation, its rights and obligations hereunder shall pass to and be acquired and assumed by the purchaser on foreclosure, or the transferee, lessee, assignee, or merged or consolidated company, as the case may be. - 36 -
ARTICLE XIV NOTICES
14.01 (a) (i) Any notice required to be given under this Agreement shall be in writing from one Party's representative on the Joint Use Committee to the other Party's representative on the Joint Use Committee and shall be sufficiently given if sent by registered mail, sent by facsimile transmission or delivered by hand and addressed, in the case of the Power Company, to its Head Office, St. John's, Newfoundland, and in the case of Newfoundland Telephone to its Head Office, St. John's, Newfoundland.
(ii) A notice sent by registered mail is deemed to have been given on the third business day following such mailing.
(iii) A notice sent by facsimile transmission, shall be deemed to have been given on the business day following the transmission of the communication. - 37 -
(iv) A notice delivered by hand shall be deemed to have been given on the date of actual delivery.
(b) Where the notice is a notice of termination or default, notwithstanding Clause 14.01(a) above, it shall not be effective unless given from the President of one Party to the President of the other Party with copies sent to the Party's representatives on the Joint Use Committee.
14.02 Either Party may at any time, and from time to time, change its address for notice, or the person designated to receive such notice, provided in this Article XIV by giving notice in writing, as provided in this Article XIV, to the other Party of this change. - 38 -
ARTICLE XV INVOICES AND PAYMENTS
15.01 Annual rentals shall be calculated in accordance with SECTION 14 - RENTALS and shall be due and payable in equal monthly instalments on the 1st of each month.
15.02 Accounts shall be deemed overdue if not paid within thirty (30) days after the receipt of the invoice. The Parties shall pay interest charges on overdue accounts at a monthly rate of one twelfth (1/12) of the annual rate determined as the lowest current prime commercial lending rate during that month at the Bank of Montreal plus one percent (1%). Such interest charges shall be compounded at the monthly rate for each month or part month the account remains overdue.
15.03 Upon completion of work performed by either Party, the expense of which is to be borne wholly or in part by the other Party, the Party performing the work shall, after its completion, deliver to the other Party an invoice showing the work completed and an itemized list of labour, materials and other expenses. In the event that a project is not completed within thirty (30) days, progress billing indicating work completed may be rendered monthly. - 39 -
15.04 Failure to make any payment required under this Agreement within thirty (30) days after the receipt of an invoice shall, at the election of the other Party, constitute a default under this Agreement.
15.05 Where, under this Agreement, it is considered advisable by agreement of both Parties, in the interest of economy, to use unit charges as representing the cost of certain operations in lieu of actual costs, nothing in the foregoing terms of this Article XV shall preclude the practice of so doing. - 40 -
ARTICLE XVI WAIVER OF TERMS OR CONDITIONS
16.01 The failure of either Party to enforce any of the terms or conditions of this Agreement shall not constitute a general or specific waiver or relinquishment of any such terms or conditions, but the same shall b'e and remain at all times in full force and effect. - 41 -
ARTICLE XVII PAYMENT OF TAXES
17.01 Each Party shall be responsible for the payment of all taxes, rates and assessments lawfully levied on property owned by it or treated as owned by it under ARTICLE IX - PARTIES' RIGHTS WITH RESPECT TO OTHERS, upon Joint Use Poles or contained in Joint Use Buried Construction, and the taxes and the assessments which are levied on these Joint Use Facilities shall be paid by the Owner thereof, but any tax, fee or charge levied on the Owner's Poles or Buried Construction solely because of their use by the Tenant shall be paid by the Tenant. - 42 -
ARTICLE XVIII ARBITRATION
18.01 (a) Where any dispute or difference arises as to any matter or thing relating to or in respect of this Agreement, such dispute or difference shall be referred to arbitration in accordance with the provisions of The Arbitration Act, R.S.N. 1990, c.A-14, as amended, and shall be submitted to a sole arbitrator agreed upon between the Parties. The decision of the sole arbitrator shall be final and binding upon the Parties.
(b) Where the Parties are unable to agree upon a sole arbitrator, such dispute or difference shall be referred to three (3) arbitrators. One (1) arbitrator shall be appointed by each Party, and the remaining arbitrator, who shall be chairman, shall be selected by the arbitrators appointed as herein provided. The decision of any two (2) arbitrators shall be final and binding upon the Parties.
(c) The costs of any such arbitration, including reasonable compensation for the arbitrator, or arbitrators, shall be borne and paid equally by the Parties, or as the arbitrator or arbitrators may otherwise direct. - 43 - ARTICLE XIX TERM OF AGREEMENT
19.01 Regardless of the date of execution, this Agreement shall continue in force for the period from January 1, 1994 to December 31, 1999 and shall not be terminable during such period except as stated elsewhere in this Agreement.
19.02 After December 31, 1999, this Agreement shall continue in full force and effect indefinitely unless and until terminated by notice in writing as hereinafter provided in this Article XIX.
19.03 (a) This Agreement may be terminated by at least twelve (12) months notice in writing, given at any time following the commencement date of this Agreement, by either Party to the other, provided that such notice of termination may not specify a termination date prior to the period ending December 31, 1999.
(b) This Clause 19.03 does not apply to a notice of termination given under either ARTICLE XI - DEFAULTS or ARTICLE XX - REGULATORY IMPACT.
19.04 Notwithstanding any termination of this Agreement, existing Joint Use shall continue to be covered by the terms of this Agreement until: - 44 - (i) such Joint Use has been discontinued by the Tenant;
(ii) a new Joint Use agreement is executed by the Parties; or
(iii) a relevant order is made by a Governing Body;
whichever occurs first. - 45 - ARTICLE XX REGULATORY IMPACT
20.01 The Parties recognize that Newfoundland Telephone is subject to regulation by the CRTC. Newfoundland Telephone shall provide notice to the Power Company of any regulatory hearing scheduled by the CRTC which involves consideration of any term of this Agreement. Where the CRTC makes an order affecting any term of this Agreement, then, subject to Clause 20.03, this Agreement shall be deemed to be modified to comply with such order.
20.02 The Parties recognize that the Power Company is subject to regulation by the Board. The Power Company shall provide notice to Newfoundland Telephone of any regulatory hearing scheduled by the Board which involves consideration of any term of this Agreement. Where the Board makes an order affecting any term of this Agreement, then, subject to Clause 20.03, this Agreement shall be deemed to be modified to comply with such order.
20.03 Where an order of the Board or the CRTC, shall result in a modification of any term of this Agreement as described in Clauses 20.01 or 20.02 and the modification affects either:
(a) Article VI or Clauses 7.01 and 7.02 of Article - 46 - VII of this Agreement; or
(b) Sections 14.01, 14.02, 14.03, 14.04, 14.05, 14.06, 14.09 or 15 of the Administrative Practices in Schedule "A" to this Agreement; or
(c) Article III or IV of the Collateral Agreement;
then the Party directly subject to the order of the Governing Body shall provide written notice of the order to the other Party within thirty (30) days of the filing of the written order. The Party which is not directly subject to the Governing Body which has made the order shall have the right, but not the obligation, to terminate this Agreement forthwith by written notice of termination to the other Party.
20.04 The exercise of the right of termination provided in Clause 20.03 may be made when the Party not directly subject to a Governing Body becomes aware of the order of that Governing Body whether as a result of the written notice of the other Party or otherwise.
20.05 (a) The right of termination provided in Clause 20.03 may only be exercised in the event that the Party which is not directly subject to the Governing Body which has made - 47 - the order, has suffered an alteration in its overall position greater than $250,000 per annum, over the remainder of the term of this Agreement.
(b) For the purposes of this ARTICLE XX - REGULATORY IMPACT, a Party's overall position for a year shall be the sum of:
(i) the gross Pole rentals payable to that Party by the other Party for that year; and
(ii) that Party's share of the rentals from Others for that year calculated in accordance with SECTION 15 - RENTALS FROM OTHERS.
20.06 The right of termination provided in Clause 20.03 may only be exercised by giving notice in writing within six (6) months from the date when the order of the Governing Body came to the attention of the Party not directly subject to the Governing Body. Failure by the applicable Party to provide notice of termination within six (6) months shall result in the loss of the right to terminate. - 48 -
ARTICLE XXI MISCELLANEOUS PROVISIONS
21.01 This Agreement shall enure to the benefit of and shall be binding upon the successors, and subject to ARTICLE XIII - ASSIGNMENT OF RIGHTS upon the assigns of the Parties respectively.
21.02 (a) In this Agreement and in Schedule "A", the words "Article" and "Clause" shall refer to specific portions of the Agreement itself, and the word "Section" shall refer to specific portions of Schedule "A".
(b) The headings used in this Agreement and in Schedule "A" are for information purposes only and shall not be construed as part of this Agreement. - 49 - IN WITNESS WHEREOF the Parties have caused these presents to be executed in duplicate and their corporate seals to be hereunto affixed, attested by the signatures of their respective officers duly authorized in that behalf.
THE COMMON SEAL of Newfoundland NEWFOUNDLAND TELEPHONE Telephone Company Limited was COMPANY LIMITED hereunto affixed by its duly authorized officers at St. John's, Newfoundland, this £2/.**"" day of "izn&trw-^x^y , 1995, in the presence of:
THE COMMON SEAL of Newfoundland NEWFOUNDLAND LIGHT & POWER Light and Power Co. Limited was CO. LIMITED hereunto affixed by its duly authorized officers at St. John's, Newfoundland, this day Of EUZABETH BABSTOCK A CommiaslOMr tor Oath* In and tor Newfoundland. My >wltilw •xptoM Daownbar ttft SCHEDULE "A" ADMINISTRATIVE PRACTICES SECTION SUBJECT PAGE 1. GENERAL 1.01 Introduction l-l 1.02 Transmission Line Poles 1-1 1.03 Circuit Limitations 1-2 1.04 Voltage Conversion Co-ordination 1-2 1.05 Prior Notification of Work on Joint Use Facilities 1-3 1.06 Information Respecting Electrical Faults 1-4 1.07 Procedure for Pole Pinning 1-5 2. JOINT USE COMMITTEE 2.01 Composition 2-1 2.02 Responsibilities " 2-1 2.03 Frequency of Meetings 2-2 2.04 Decisions 2-3 2.05 Pole Census 2-3 3. PLANNING & CO-ORDINATION 3.01 Identification of Joint Use Facilities 3-1 3.02 Purpose of Planning 3-1 3.03 Planning Meetings 3-1 3.04 Unidentified Facilities 3-2 3.05 Planning for Joint Use Ownership 3-3 3.06 Mixed Ownership 3-3 (i) SECTION SUBJECT PAGE 4. APPLICATIONS AND PERMIT 4.01 Initial Contact 4-1 4.02 Exception to Procedure 4-1 4.03 Application for Permit 4-2 4.04 Processing of Application 4-2 4.05 Permits for Existing Joint Use Poles 4-3 ESTABLISHING JOINT USE OF EXISTING POLE UNITS 5.01 Application of this Section 5-1 5.02 Replacement of Poles, Pole Units or Facilities 5-1 5.03 Owner Undertakes Replacement of Facilities 5-1 5.04 Tenant Undertakes Replacement of Facilities 5-2 5.05 Additional Pole Units in Existing Pole Lines 5-2 5.06 Installing and Modifying Attachments 5-3- 5.07 Pole Top Extensions 5-4 5.08 . Modifications to be Made Prior to Attaching 5-4 ESTABLISHING JOINT USE OF NEW FACILITIES 6.01 Application of this Section 6-1 6.02 Co-ordination and Ownership 6-1 6.03 Construction of Joint Use Facilities 6-2 6.04 Joint Use Occupancy Time Frame 6-2 6.05 Assumed Joint Use Poles 6-2 (ii) r SECTION SUBJECT PAGE 6.06 Additional Non-Joint Use Facilities 6-3 6.07 Responsibility for Installing Attachments 6-3 6.08 Pole Identification 6-4 (f\ ADDING, CHANGING, REPLACING, AND RELOCATING EXISTING JOINT USE FACILITIES OR ATTACHMENTS 7.01 Application of this Section 7-1 7.02 Replacement of Poles, Pole Units, or Facilities - 7-1 7.03 Owner Undertakes Replacement of Facilities 7-1 7.04 Tenant Undertakes Replacement of Facilities 7-2 7.05 Additional Pole Units in Existing Joint Use Pole Lines 7-2 ( 7.06 Replacement of Substandard Joint V Use Poles 7-3 7.07 Replacement of Specific Poles 7-5 7.08 Emergency Pole Replacement 7-5 7.09 Transferring and Rearranging Attachments 7-6 7.10 Modifications to be Made Prior to Additional Joint Use 7-7 7.11 Requirements of Governing Bodies or Property Owners 7-7 8. TRANSFER CHARGES 8.01 Calculation of Transfer Costs 8-1 8.02 Transfer Costs and the Replacement of Facilities 8-1 8.03 Transfer of Attachments due to Routine Maintenance 8-2 (iii) SECTION SUBJECT PAGE 8.04 Transfer of Attachments due to Requirements of Governing Body 8-2 8.05 Transfer of Attachments due to Requirements of Others 8-3 9. POWER COMPANY CONTROL CABLES IN THE COMMUNICATION SPACE 9.01 Application of this Section 9-1 9.02 Control Cables on Non-Joint Use Poles 9-1 9.03 Control Cables on Existing Joint Use Poles - 9-2 9.04 Joint Use Poles With Control Cables in the Communication Space 9-2 9.05 Establishing Joint Use of New Joint Use Poles 9-3 9.06 Revenue Generated from Control Cable 9-3 10. MAINTENANCE OF FACILITIES AND ATTACHMENTS 10.01 Maintenance of Joint Use Facilities 10-1 10.02 Maintenance of Attachments 10-1 10.03 Maintenance of Rights-of-Way 10-2 11. TERMINATION OF JOINT USE 11.01 Termination of Joint Use by Owner 11-1 11.02 Termination of Joint Use by the Tenant 11-2 12. HIERARCHY OF SIGNING AUTHORITY 12.01 Transaction Approvals 12-1 12.02 Change of Authorities 12-2 13. RIGHTS-OF-WAY 13.01 Tenant Rights-of-Way 13-1 13.02 Joint Rights-of-Way 13-1 (iv) SECTION SUBJECT 13.03 Distribution Line Easements 13-2 13.04 No Warranty for Use of Owner's Rights-of-Way 13-2 13.05 Clearing of Rights-of-Way 13-3 13.06 Right-of-Way Acquisition 13-3 14. RENTALS 14.01 Revenue Neutrality 14-1 14.02 Annual Carrying Charge 14-1 14.03 Composition of Annual Carrying Charge Rate 14-2 14.04 Basis of Rental Rates 14-2 14.05 Composition of Embedded Costs 14-2 14.06 Calculation of Annual Carrying Charge Rate 14-3 14.07 Joint Use File 14-3 14.08 Data to be Exchanged Annually 14-4 14.09 Net Annual Rentals 14-6 14.10 Details of Rental Calculations 14-6 14.11 Annual Review 14-7 15. RENTALS FROM OTHERS 15.01 Sharing of CATV Rental Payments 15-1 15.02 Calculation and Collection of CATV Rental Payments 15-2 15.03 Cumulative Collection Ratio 15-3 15.04 Distribution of Rental Payments from Others 15-4 15.05 Payment 15-5 (v) SECTION SUBJECT PAGE 16. FORMS 16.01 General 16-1 16.02 Joint Use Request 16-1 17. PRICE SCHEDULES 17.01 Sacrificed and Structural Value Price Schedules 17-1 17.02 Price Schedule Update 17-2 17.03 Schedule of Transfer Cost Factors 17-2 18. JOINT USE BURIED CONSTRUCTION 18.01 Policy, Planning, and Co-ordination 18-i 18.02 Contracting . 18-1 18.03 Specifications 18-2 18.04 Cost Sharing 18-2 18.05 Maintenance 18-3 19. CONSTRUCTION PRACTICES 19.01 General - C.S.A. Standards 19-1 19.02 Vertical Design Clearances and Separations 19-2 19.03 Climbing Space Requirements - Joint Use Poles 19-5 19.04 Joint Use Anchors and Guys 19-7 19.05 Joint Use Poles 19-17 19.05.1 Pole Line Design 19-17 19.05.2 Pole Setting Depth 19-26 19.05.3 Pole Marking 19-26 19.05.4 Reuse of Wood Poles 19-31 (vi) SECTION SUBJECT PAGE 19 .06 Grounding and Bonding 19-36 19 .07 Easement Widths and Pole Lines 19-42 19 .08 Line Clearing and Tree Trimming 19-4 3 19 .09 Joint Use Buried Construction 19-44 19 .10 Vertical Runs on Poles 19-47 . 19 .11 Standard Symbols 19-49 (vii) SECTION 1 — GENERAL 1.01 Introduction These Administrative Practices form part of the Joint Use Agreement and contain policies, price schedules, forms, procedures and specifications essential to the detailed administration and operation of the Agreement. The success of the Agreement is dependent on a good relationship between the Parties at all levels. This can only be achieved if each Party carries out the intent of the Agreement, co-ordinates its work to meet the time schedules outlined and gives work on Joint Use Facilities a high priority. 1.02 Transmission Line Poles Transmission Line Poles are not part of the Joint Use Agreement and the Power Company is not obligated to permit attachment. In the event that transmission line poles are used as crossing poles by Newfoundland Telephone, the Parties agree that: (a) New Joint Use Crossing Beneath Transmission Lines Where construction of new Joint Use Facilities involves crossing under a transmission line , an analysis of the practicality and cost between raising transmission line structure (s) and going underground will be made by the Parties. If the Parties determine that the transmission 1-2 line structure(s) should be raised, then both Parties will share the cost equally, as they would for an underground duct bank. (b) Upgrading of Existing Transmission Line Structures for Additional Newfoundland Telephone Clearance. Where the Power Company agrees to upgrade existing transmission line structures to provide additional clearances required by Newfoundland Telephone, then the work will be carried out by the Power Company and the cost shall be paid by Newfoundland Telephone. 1.03 Circuit Limitations These Practices are in accordance with the requirements for Joint Use involving supply circuits operating at a voltage of 25 KV or less phase to phase. In general. Joint Use involving supply circuits exceeding 25 KV phase to phase and communication circuits will not be permitted. 1.04 Voltage Conversion Co-ordination Communication circuit requirements or protection and grounding vary with certain primary voltages and systems. The Power Company shall give Newfoundland Telephone a minimum of sixty 1-3 (60) days prior written notice of a proposed change in primary voltage or system. 1.05 Prior Notification of Work on Joint Use Facilities for safety of personnel and security of service, a Party who proposes to perform work on Joint Use Facilities shall notify the other Party before commencing such work. When personnel of Newfoundland Telephone are erecting Poles or tree trimming along existing lines carrying Power Company circuits energized at voltages above 750 volts to ground, Power Company personnel must be notified daily before and after any work is performed. Notwithstanding the provisions of ARTICLE XIV - NOTICES of the Agreement, such notification need not be written notice. Furthermore, before work begins on erecting Poles, along an existing line, carrying Power Company circuits energized at voltages above 750 volts to ground, clearance shall be obtained from the control authority of the Power Company in the area. Newfoundland Telephone's authorized representative must obtain a protection guarantee and have a tag placed on the feeder being worked on prior to beginning work. When work is finished for the day, Newfoundland Telephone's authorized representative must notify the Power Company to have this protection guarantee released and the tag removed. The costs for having a protection guarantee established and released shall be as agreed between the Parties and borne by 1-4 Newfoundland Telephone. 1.06 Information Respecting Electrical Faults (a) Where Newfoundland Telephone encounters difficulties which may be attributable to an electrical fault, it may request in writing a listing of electrical faults recorded by the Power Company, and the Power Company will attempt to provide a written listing to Newfoundland Telephone within thirty (30) days of the request. (b) Where for any reason during the placement of Poles by Newfoundland Telephone into energized circuits owned by the Power Company an electrical fault occurs, Newfoundland Telephone's authorized representative shall immediately cease work and notify the Power Company's local control authority. If the feeder trips for any reason whatsoever, it shall not be re-energized until assurance is received from Newfoundland Telephone's authorized representative that all workmen are clear and the line may be re-energized. Where a trip is due to an electrical fault caused by Newfoundland Telephone, the Power Company may request a written report of the incident. This report shall be submitted not more than five business days following the request. 1-5 1.07 Procedure for Pole Pinning The following outlines the Parties responsibilities for Pole pinning: Newfoundland Telephone shall: (a) give notice to Power Company area office one full day in advance of any Pole installation in energized lines; (b) reimburse the Power Company for its Pole pinning and inspection costs as agreed between the Parties; (c) retrieve Newfoundland Telephone cover-up and Pole guards from the Power Company premises; and (d) Replace burnt Poles which occur before the Power Company inspections. Power Company shall: (a) inspect Poles to determine if pinning is required. This inspection shall take place no later than the next business day after the Poles are installed; (b) pin Poles; 1-6 (c) transport Newfoundland Telephone's cover-up and Pole guards to the Power Company's premises; and (d) replace burnt Poles which occur after the Power Company inspections. 2-1 SECTION 2 - JOINT USE COMMITTEE 2.01 Composition (a) Each Party shall notify the other Party in writing of the names of its Joint Use Committee members and of any changes made from time to time. (b) Each Party may substitute a representative for a Joint Use Committee member for the purpose of attending a Joint Use Committee meeting. (c) Additional personnel may be utilized from time to time to assist the Joint Use Committee. (d) Working committees may be established by the Joint Use Committee to act as a task force on special problems. 2.02 Responsibilities The Joint Use Committee shall: (a) promote and co-ordinate the planning, design, installation and maintenance of Facilities for Joint Use; 2-2 (b) administer the terms and conditions of this Agreement; (c) consider all matters respecting Joint Use of Facilities and negotiate transactions respecting the institution, continuance or discontinuance of the Joint Use of particular Facilities; (d) negotiate all questions and problems which come under dispute regarding Joint Use; (e) initiate such studies, audits, surveys, samples and other activities as may be necessary to formulate, revise and amend the Administrative Practices; and (f) initiate annual reviews and modifications, as required of the Administrative Practices for the construction, management, preservation and use of Joint Use Facilities, and the rentals and payments to be made in respect thereof. 2.03 Frequency of Meetings Meetings of the Joint Use Committee shall be convened quarterly; however, any member may at any time request such a meeting on short notice and without formality. 2-3 2.04 Decisions No decision or recommendation shall be made unless there is unanimous agreement by all members of the Joint Use Committee. 2.05 Pole Census From time to time as determined by the Joint Use Committee, the Parties shall jointly conduct a Pole census to ensure a mutually acceptable degree of accuracy of Joint Use records. Each Party will participate equally in the census, bear its own costs and complete the census within an agreed time frame. 3-1 SECTION 3 - PLANNING & CO-ORDINATION 3.01 Identification of Joint Use Facilities • Each Party is responsible for planning its own Facilities; however, the Parties shall identify and co-ordinate planning for proposed Facilities anticipated within a five (5) year planning period. Such Facilities shall be categorized as to their ultimate suitability or non-suitability for Joint Use. 3.02 Purpose of Planning The final decision to go Joint Use is subject to the rights of each Party under Clause 2.02 of ARTICLE II - TERRITORY AND SCOPE OF AGREEMENT. No matter how comprehensive the planning effort may be, circumstances may dictate changes in plan or the identification of new requirements. The purpose of planning, however, is to stabilize this process as much as possible to promote sound long term decisions and ensure the orderly development of Joint Use Facilities. 3.03 Planning Meetings Both Parties, through the Joint Use Committee, shall ensure that: 3-2 (a) two formal joint meetings are held annually to review and update the five (5) year construction program of each Party relative to proposed Joint Use Facilities; (b) the personnel of both Parties meet or contact one another as required on individual jobs as they are identified and for which Joint Use possibilities exist; (c) before each Party approves its budget for the next budget year, it determines as near as possible by discussion with the other Party, the estimated cost of Joint Use Facilities to be constructed in that year by each Party. 3.04 Unidentified Facilities Both Parties recognize that it will not be possible to identify and document all Facilities to be constructed within the five year planning period. However, as such Facilities are identified by a Party, it shall immediately notify in writing and co-ordinate for Joint Use and each party should then organize its resources so as to have the capability of fulfilling its obligations under this Agreement. 3-3 3.05 Planning for Joint Use Ownership Both Parties recognize that it is a mutual objective to obtain a Joint Ownership Ratio of 60% Power Company, 4 0% Newfoundland Telephone. Accordingly, where this Agreement provides that one Party shall Replace or place a Pole Unit the Parties may agree that the other Party will Replace or place the Pole Unit so as to assist in reaching the Joint Ownership Ratio of 60% Power Company, 40% Newfoundland Telephone. 3.06 Mixed Ownership Both Parties recognize that one Party's ownership of a Pole Line is preferable to mixed ownership where such sole ownership is a practical alternative to mixed ownership. 4-1 SECTION 4 - APPLICATIONS AND PERMIT 4.01 Initial Contact Where either Party: (a) wishes to place Attachments on a Pole belonging to the other Party which is not a Joint Use Pole; or (b) wishes to place additional Attachments, or upgrade existing Attachments on a Joint Use Pole belonging to the other Party, an authorized representative shall contact an authorized rep- resentative of the other Party to determine if such Joint Use can be achieved. . 4.02 Exception to Procedure The procedures in this Section 4 shall not be required for additional Attachments or upgraded Attachments on a Joint Use Pole that would not significantly increase the loading on the Pole such as service drops, secondary runs, street lights, transformer changes, etc. 4-2 4.03 Application for Permit (a) Where the Tenant, or prospective Tenant, wishes to obtain a Permit, it shall apply by Joint Use Request to the Owner, or prospective Owner, in the form shown in SECTION 16 - FORMS, together with engineering plans and shall specify the location of the Pole in question, the amount of space required, the character of the Attachments including the number, type and diameter of existing or proposed conductors and cables, the character of the circuits to be used, and, where applicable, the existing span lengths. (b) In case of emergency, oral notification subsequently confirmed by written Application may be given. 4.04 Processing of Application (a) Where the Application is acceptable to the Owner, the Owner shall indicate approval by signing a copy of the Joint Use Request which shall then constitute a Permit. Upon receipt of the Permit, the Tenant shall have the right to use the space for Attachments of the character specified on the Application. (b) Where the Application is unacceptable to the Owner, the 4-3 Owner shall, within thirty (3 0) days after receipt of the Joint Use Request, return a copy to the Tenant indicating that Joint Use is unacceptable. 4.05 Permits for Existing Joint Use Poles Existing Poles owned by either Party which were in Joint Use prior to the date of this Agreement shall be included under this Agreement and all Permits now in force for the Joint Use of Poles shall be deemed to be approved Permits under the terms of this Agreement. 5-1 SECTION 5 - ESTABLISHING JOINT O8E OF EXISTING POLE UNITS 5.01 Application of this Section This Section 5 applies to the establishment of Joint Use of existing Pole Units of a Party. 5-02 Replacement of Poles. Pole Units or Facilities Where there is Replacement of Poles, Pole Units or Facilities the Party undertaking the Replacement shall make any other necessary changes, including Line Clearing in the Pole Line containing the Facilities, as may be necessary to meet the requirements of SECTION 19 - CONSTRUCTION PRACTICES. 5.03 Owner Undertakes Replacement of Facilities Where Facilities are not suitable, as provided in SECTION 19 - CONSTRUCTION PRACTICES, for the proposed Tenant's Attachments, and the Owner agrees to Replace the Facilities the Owner shall Replace the Facilities- The costs involved in Transferring, Rearranging, or removing the Attachments of the Parties shall be paid by the Tenant as provided in SECTION 8 - TRANSFER COSTS. The Tenant shall pay to the Owner the Sacrificed Value for each Facility Replaced by the Owner which the Tenant is required by Section 8 - TRANSFER COSTS to pay 5-2 Transfer costs. 5.04 Tenant Undertakes Replacement of Facilities Where Facilities are not suitable, as provided in SECTION 19 - CONSTRUCTION PRACTICES, for the proposed Tenant's Attachments and the Owner does not agree to Replace the Facilities, the Tenant shall Replace the Facilities. The costs involved in Transferring, Rearranging or removing the Attachments of the Parties shall be paid by the Tenant as provided in SECTION 8 - TRANSFER COSTS. The Tenant shall pay to the Owner the Sacrificed Value for each Facility Replaced for which the Tenant is required by SECTION 8 - TRANSFER COSTS to pay Transfer costs. 5.05 Additional Pole Units in Existing Pole Lines (a) Where a proposed Tenant requires, in reasonable engineering judgment, that an additional Pole Unit be installed in an existing Pole Line and the Owner does not require the additional Pole Unit, the Tenant will install the additional Pole Unit and pay the attachment costs of both Parties. 5-3 (b) Where both Parties require that an additional Pole Unit be installed in an existing Pole Line, the Parties shall decide which Party shall install the Pole Unit based on normal Pole placement arrangements between the Parties in the area and each Party shall bear its own attachment costs. (c) Where one Party requires a Joint Use Pole Unit in a non- Joint Use Pole Line or where a Party desires an additional Pole Unit which is not required in reasonable engineering judgment for Joint Use, then the Party requiring the Pole Unit will install it, pay the attachment costs of both Parties and pay to the other Party a percentage of the cost of the Joint Use Pole Unit equal to the other Party's percentage in the Joint Use Ratio. (d) In this Section 5.05, an "additional Pole Unit" includes a mid-span Pole Unit if required in a span length between two Pole Units that exceeds 61 meters. 5.06 Installing and Modifying Attachments Each Party shall supply and install, Transfer, Rearrange and remove its own Attachments on the Poles, including any special 5-4 equipment such as protection, special crossarms, guys or other types of construction required to sustain unbalanced loads due to its Attachments- Each Party shall perform such work promptly and in such a manner as not to interfere with the service of the other Party. 5.07 Pole Top Extensions A Pole Top Extension may serve as an expedient where clearances cannot be met without replacing Poles or making other extensive Rearrangements of the Facilities. It is not intended to be used as an alternative for selecting the correct length of Pole when designing new Facilities. Where Pole Top Extensions are used, they shall be provided and installed at the sole expense of the Party using them. When the supporting Pole requires Replacement, the Pole Top Extension shall be removed at the expense of the Party owning it and the new Pole to be placed shall be of such dimensions as to provide the clearance as provided in SECTION 19 - CONSTRUCTION PRACTICES. 5.08 Modifications to be Made Prior to Attaching Existing Facilities shall be brought into conformity with SECTION 19 - CONSTRUCTION PRACTICES, before any Attachments requiring a Permit are placed by the Tenant. 6-1 SECTION 6 - ESTABLISHING JOINT DSE OF NEW FACILITIES 6-01 Application of this Section . This Section 6 applies to the establishment of Joint Use of new Facilities. 6.02 Co-ordination and Ownership The construction of new Facilities shall be co-ordinated between the Parties to reach agreement concerning Pole ownership, details of construction and proposed completion dates. Due regard shall be given to the service needs of the customers of the Parties. For the purpose of this section, new Facilities include: (a) new Pole Lines; (b) extensions to existing Pole Lines; (c) major reconstruction of existing Pole Lines, e.g. due to deterioration or highway alteration; and (d) additional Poles for crossovers, guying, providing service, or as may be required by the Parties. 6-2 6.03 Construction of Joint Use Facilities The Owner shall design the Facilities, obtain joint rights-of- way as provided in SECTION 13 - RIGHTS-OF-WAY, construct the Facilities and do the necessary Line Clearing to make the Facilities suitable for Joint Use as provided in SECTION 19 - CONSTRUCTION PRACTICES. The Owner shall supply and install the Anchors required to withstand the combined guying needs of both Parties, even if more than one Anchor is required, and shall bear the associated costs. 6.04 Joint Use Occupancy Time Frame Where the Tenant identifies that a Pole will be required for Joint Use, then billing shall commence following Attachment or five (5) years after placement of the Pole by the Owner, whichever comes first. 6.05 Assumed Joint Use Poles New Poles placed in circumstances where it is obvious to the Owner that the Tenant will be placing its Attachments on those Poles, shall be assumed to be Joint Use Poles and designated as Joint Use in the Joint Use File by the Owner. The Owner shall provide to the Tenant a monthly listing of assumed Joint Use Poles added to the Joint Use File. The Tenant shall review 6-3 the monthly listing, identify those Poles on which the Tenant shall not be placing its Attachments and request that the Owner cancel the designation of those Poles as Joint Use. 6.06 Additional Non-Joint Use Facilities At the time of construction, the Owner may, if requested by the Tenant, place additional non-Joint Use Pole Units which are required for the sole use of the Tenant. Upon completion of such work the Owner may invoice the Tenant for its actual costs. Such Pole Units will become the property of the Tenant upon payment of the invoice. 6.07 Responsibility for Installing Attachments Each Party shall supply and install, at its own expense, its own Attachments on new Joint Use Poles, including any special equipment such as protectors, special crossarms and guys or other types of construction required to sustain unbalanced loads due to its Attachments. Each Party shall perform such work promptly and in such a manner as not to interfere with the service of the other Party. Each Party will place its Attachments on new Joint Use Poles as provided in SECTION 19 - CONSTRUCTION PRACTICES. 6-4 6.08 Pole Identification All new Joint Use Poles are to be marked to show ownership and date placed and shall be numbered as provided in SECTION 19 - CONSTRUCTION PRACTICES. 7-1 SECTION 7 - ADDING, CHANGING. REPLACING AND RELOCATING EXISTING JOINT USE FACILITIES OR ATTACHMENTS 7.01 Application of this Section This Section 7 applies to additions and changes to existing Joint Use Facilities or Attachments. 7.02 Replacement of Poles. Pole Units or Facilities Where there is Replacement of Poles, Pole Units or Facilities, the Party undertaking the Replacement shall make any other necessary changes, including Line Clearing in the Pole Line containing the Facilities, as may be necessary to meet the requirements of SECTION 19 - CONSTRUCTION PRACTICES. 7.03 Owner Undertakes Replacement of Facilities Where Joint Use Facilities are not suitable, as provided in SECTION 19 - CONSTRUCTION PRACTICES, for the proposed additional Attachments, and the Owner agrees to Replace the Facilities, the Owner shall Replace the Facilities. The costs involved in Transferring, Rearranging or removing the Attachments of the Parties shall be paid as provided in SECTION 8 - TRANSFER COSTS. The Tenant shall pay to the Owner the Sacrificed Value for each Facility Replaced for which the 7-2 Tenant is required by SECTION 8 - TRANSFER COSTS to pay Transfer costs. 7.04 Tenant Undertakes Replacement of Facilities Where Facilities are not suitable, as provided in SECTION 19 - CONSTRUCTION PRACTICES, for the proposed additional Attachments and the Owner does not agree to Replace the Facilities, the Tenant shall replace the Facilities. The costs involved in Transferring, Rearranging or removing the Attachments of the Parties shall be paid as provided in SECTION 8 - TRANSFER COSTS. The Tenant shall pay to the Owner the Sacrificed Value for each Facility Replaced for which the Tenant is required by SECTION 8 - TRANSFER COSTS to pay Transfer costs. 7.05 Additional Pole Units in Existing Joint Use Pole Lines (a) Where one Party requires, in reasonable engineering judgment, that an additional Pole Unit be installed in an existing Joint Use Pole Line and the other Party does not require the additional Pole Unit, the Party requiring the Additional Pole Unit will install it and pay the attachment costs of both Parties. 7-3 (b) Where both Parties require that an additional Pole Unit be installed in an existing Joint Use Pole Line, the Parties shall decide which Party will install the Pole Unit based on normal Pole placement arrangements between the Parties in that area and each Party shall bear its own attachment costs. (c) Where one Party requires that a Joint Use Pole Unit be installed in a non-Joint Use Line or where a Party desires an additional Pole Unit which is not required in reasonable engineering judgment for Joint Use, then the Party requiring the Pole Unit will install it, pay the attachment costs of both Parties and pay to the other Party a percentage of the cost of the Joint Use Pole Unit equal to the other Party's percentage in the Joint Use Ratio. (d) In this Section 7.05, an "additional Pole Unit" includes a mid-span Pole Unit if required in a span length between two Pole Units that exceeds 61 meters. :7.06 Replacement of Substandard Joint Use Poles (a) Substandard Poles in Region 1 which were placed prior to January 1, 1988 shall be Replaced by the Owner before additional Attachments requiring a Permit are placed on 7-4 those Poles and each Party shall bear its own Transfer Costs. Substandard Poles in Region 1 which were placed after January 1, 1988 shall be Replaced by the Owner before additional Attachments requiring a Permit are placed on those Poles, and the Transfer costs of both Parties shall be paid by the Owner. (b) Substandard Poles in Region 2 which were placed prior to January 1, 1992 shall be Replaced by the Owner before additional Attachments requiring a Permit are placed on those Poles and the following rules shall apply: (i) except as provided in Section 7.06(b)(ii) and (iii) , such Poles shall be deemed not to be Substandard Poles; (ii) where the Pole fails to meet C.S.A. standards for the Owner's non-Joint Use, each Party shall bear its own Transfer costs. (iii) in cases where it can be reasonably established that a transformer was placed subsequent to the attachment of the initial communication cable, each Party shall bear its own Transfer costs. (c) Substandard Poles in Region 2 which were placed after 7-5 January 1, 1992 shall be Replaced by the Owner before additional Attachments requiring a Permit are placed on those Poles, and the Transfer costs of both Parties shall be paid by the Owner. 7-07 Replacement of Specific Poles Where a Joint Use Pole carrying Attachments such as distribution terminals, load coils, repeaters, cross boxes, air dryers, terminals of aerial cable, transformers, service wires, underground connections, etc., or at such locations as dead ends, corners, junctions, etc., is to be Replaced, the new Pole should be placed in the same hole which the Replaced Pole occupied. However, if this is not possible, the Pole shall be placed in a location which will satisfactorily accommodate the Attachments of both Parties. In specific situations, it may be necessary for the Parties to co-ordinate so as to ensure that the new Pole is placed in a mutually acceptable location to minimize the cost to both Parties. 7.08 Emergency Pole Replacement To maintain or restore service during emergencies when immediate attention is required, the Power Company may Replace Joint Use Poles owned by either Party and temporarily secure 7-6 Newfoundland Telephone Attachments in a safe manner. In cases where Newfoundland Telephone owns the Pole, it will reimburse the Power Company for the actual costs of such Pole Replacement. 7.09 Transferring and Rearranging Attachments Where it is necessary to Replace, Transfer or Rearrange Attachments due to the Replacement or relocation of a Joint Use Pole Unit, the Owner or Tenant, before making such change, shall issue a Joint Use Request- In case of emergency, oral notice may be given and subsequently confirmed in writing. Upon receipt of the Joint Use Request, the Owner or Tenant will Transfer or Rearrange its Attachments according to the following rules: (i) Transfers during emergency - Attachments are to be Transferred or Rearranged immediately after the Pole Replacement or relocation; (ii) Transfers affecting service - Attachments are to be Transferred or Rearranged within thirty (30) days after the Pole Replacement or relocation; (iii) Transfers not affecting service - Attachments are to be Transferred or Rearranged as soon as is 7-7 reasonably practical, but in any event within one hundred and eighty (180) days after the Replacement or relocation. 7.10 Modifications to be Made Prior to Additional Joint Use Existing Facilities shall be brought into conformity with SECTION 19 - CONSTRUCTION PRACTICES, before any additional Attachments are made. 7.11 Requirements of Governing Bodies or Property Owners Where a Governing Body or property owner acting within the scope of its authority renders necessary or desirable the relocating, removing or Replacing of a Joint Use Pole or the Transferring or Rearranging of Attachments thereon, the Owner shall notify the Tenant of such requirement without delay and the date on which the required work is to be done. The work shall be carried out by the Parties as provided in Section 7.09. Each Party shall bear its own costs except that: (a) Where the Governing Body or property owner is to bear all or part of the cost of the work, the Owner and the Tenant shall each make its own separate arrangements with the Governing Body or property owner for the billing and 7-8 collection of costs which are payable by the Governing Body or property owner. Failure of either Party to complete arrangements with the Governing Body or property owner shall not interfere or hinder the right of the Owner to remove or relocate all of its Facilities and Transfer or Rearrange Attachments. (b) Where a Joint Use Pole is upgraded because only the Tenant's Attachments are too low to meet the requirements of the Governing Body, the Tenant shall pay to the Owner a percentage of the Sacrificed Value of the Pole being Replaced equal to the Tenant's percentage in the Joint Use Ratio- 8-1 SECTION 8 - TRANSFER COSTS 8.01 Calculation of Transfer Costs Where one Party is reguired to pay the Transfer costs of the . other Party, the amount payable shall be calculated by multiplying the actual costs of the Transfer by the appropriate cost factor set out in EXHIBIT C to SECTION 17 - PRICE SCHEDULES. This cost factor shall not apply to costs associated with Rearrangements. 8.02 Transfer Costs and the Replacement of Facilities (a) Except as expressly provided elsewhere in this Agreement, where a Pole Unit is Replaced to accommodate the proposed or additional Attachments of a Party, that Party shall pay the Transfer costs of the other Party. (b) Where a Pole Unit is Replaced to accommodate the proposed or additional Attachments of a Party and the other Party performs an upgrade of its own service capability at the time of the Replacement of the Pole Unit, which upgrade would have reguired the Replacement of the Pole Unit in any event, then each Party shall bear its own Transfer costs associated with that Pole Unit. 8-2 (c) For purposes of Section 8.02 (b) , the Replacement of a Pole which cannot accommodate a transformer, with a longer Pole which can accommodate a transformer, will be considered an upgrade of service capability where there is a reasonable indication that a transformer will be placed on the Replacement Pole within five (5) years of the date of Replacement. 8.03 Transfer of Attachments due to Routine Maintenance Where Transferring of Attachments is involved in the Replacement of Joint Use Poles for reasons of routine maintenance, such as replacing deteriorated or damaged Poles, subject to the provisions contained in ARTICLE X - LIABILITIES & DAMAGES, each Party shall bear the cost of Transferring its own Attachments 8.04 Transfer of Attachments due to Requirements of Governing Body Where a Governing Body or property owner acting within the scope of its authority renders necessary or desirable the Transfer, Rearrangement or removal of Attachments, each Party shall bear the cost of Transferring, Rearranging or removing its own Attachments. 8-3 8.05 Transfer of Attachments due to Requirements of others Where the Transfer, Rearrangement or removal is to accommodate the Attachments of Others, the Owner shall pay the cost of Transferring, Rearranging or removing both Parties Attachments. 9-1 SECTION 9 -POWER COMPANY CONTROL CABLES IN THE COMMUNICATION SPACE 9.01 Application of this Section This Section 9 applies to the planning, establishment and changing of Joint Use in circumstances involving Control Cables which are attached in the communication space. The other provisions of the Agreement apply to circumstances involving Control Cables which are not expressly addressed in this Section 9. This Section 9 is not intended to limit the Power Company's right to attach Control Cables on Joint Use Poles in the power space. 9.02 Control Cables on Non-Joint Use Poles Where a Control Cable is attached to a non-Joint Use Pole owned by the Power Company to which Newfoundland Telephone proposes to make Attachments, Newfoundland Telephone may relocate the Control Cable to the bottom of the communication space, provided that ground clearances required by the Control Cable can be maintained. The cost of Rearranging the Control Cable shall be borne by Newfoundland Telephone. 9-2 9.03 Control Cables on Existing Joint Use Poles The Power Company may attach a Control Cable to an existing Joint Use Pole where the communication space can accommodate the Control Cable. The Control Cable shall be attached at the bottom of the communication space. Where Rearrangement of Newfoundland Telephone's Attachments are required to attach a Control Cable to a Joint Use Pole, the cost of such Rearrangement shall be borne by the Power Company. 9.04 Joint Use Poles with Control Cables in the Communication Space Where it is necessary to Rearrange Attachments or Replace a Joint Use Pole Unit installed prior to January 1, 1994 for proposed additional Attachments in the communication space and a Control Cable is attached in the communication space of the Pole Unit, and: (a) the Control Cable was attached in the communication space prior to January 1, 1994 and the presence of the Control Cable deprives Newfoundland Telephone of normal use of two feet of communication space, or (b) the Control Cable was attached in the communication space on or after January 1, 1994, and the proposed additional Attachments could have been made to the Pole in the 9-3 absence of the Control Cable, then each Party shall bear its own costs, including Transfer costs. The design of the communication space for the Replacement Pole shall not affect the obligation of each Party to bear its own costs, including Transfer costs, as provided in this Section 9.04. 9.05 Establishing Joint Use of New Joint Use Poles Where the Power Company plans to attach a Control Cable on new Joint Use Poles, i.e. Poles installed on or after January 1, 1994, the new Joint Use Poles shall be designed and constructed to accommodate the attachment of the Control Cable at the bottom of the communication space. The Power Company shall notify Newfoundland Telephone at least once during each calendar year of its Control Cable requirements. The Parties shall incorporate the Control Cable requirements into Joint Use planning. 9.06 Revenue Generated from Control Cable Where the Power Company receives revenue from Control Cables attached in the communication space on Joint Use Poles, other than revenue from electrical rates, then the Power Company shall pay an attachment rate equal to the CATV attachment rate 9-4 for each such Joint Use Pole. The revenue from such attachment rate shall be shared by the Parties in accordance with SECTION 15 - RENTALS FROM OTHERS. 10-1 SECTION 10 -MAINTENANCE OF FACILITIES AND ATTACHMENTS 10-01 Maintenance of Joint Use Facilities The Owner shall maintain its Joint Use Facilities in a safe and serviceable condition in accordance with SECTION 19 - CONSTRUCTION PRACTICES and shall Replace deteriorated or damaged Joint Use Poles. Except as otherwise provided in this Agreement or the Collateral Agreement, the cost of maintaining and Replacing Facilities shall be borne by the Owner. Each Party shall bear the cost of Transferring, Rearranging or removing its Attachments. 10.02 Maintenance of Attachments Each Party shall at all times maintain at its expense all of its Attachments in accordance with SECTION 19 - CONSTRUCTION PRACTICES and shall keep them in safe condition and good repair; provided however, that neither Party shall be required to Rearrange any Attachments installed prior to January 1, 1979 in Region 1 and prior to January 1, 1992 in Region 2, and carried on one side of any Joint Use Pole so as to occupy the other side. 10-2 10.03 Maintenance of Rjqhts-of-Way (a) Any tree trimming and cutting necessary to maintain clearance requirements of both Parties on existing Joint Use Lines should normally be performed by the Owner of the Line. Where there is a hazard in clearing adjacent to energized power lines on Poles owned by Newfoundland Telephone, the Power Company may, at the request of Newfoundland Telephone, do such clearing and be reimbursed by Newfoundland Telephone. Newfoundland Telephone shall reimburse the Power Company a percentage of the cost equal to the percentage of the Pole Line owned by Newfoundland Telephone. (b) Before the Power Company submits its plan for Joint Use tree trimming and cutting for the next budget year, it will notify Newfoundland Telephone of the communities in which this work is planned and the estimated cost. Newfoundland Telephone's requirements for tree trimming and cutting around existing communication cables shall be provided to the Power Company to be included with specifications provided to the contractor describing how this work is to be completed. Newfoundland Telephone representatives shall be provided with an opportunity to inspect the completed work before payment. 11-1 SECTION 11 - TERMINATION OF JOINT DSE 11.01 Termination of Joint Use by Owner (a) Where the Owner has no further requirement for any Joint Use Facility, it shall give notice in writing to the Tenant at least one hundred and eighty (180) days prior to the date on which it intends to remove its Attachments and the Tenant shall have the right, prior to the expiration of the notice, to purchase the Facility at its Structural Value as provided in SECTION 17 - PRICE SCHEDULES. (b) Where the Tenant desires to purchase the Facility, it shall notify the Owner in writing to that effect within the period of notice provided in Section 11.01. A bill of sale to cover the transfer of ownership of the Facility shall be prepared and executed. (c) Where, at the expiration of the one hundred and eighty (180) day period, the Owner has removed its Attachments from the Pole but the Tenant has not removed all of its Attachments, then notwithstanding the provisions of Section 11.02, the Facility shall become the property of the Tenant. In such event, the Tenant shall save harmless 11-2 the former Owner from all obligations, liabilities, damages, costs, expenses and charges incurred thereafter because of, or arising out of, the presence or condition of the Facility or Attachments and a bill of sale to cover the transfer of ownership of the Facility shall be prepared and executed and the Tenant shall pay the Owner the Structural Value of the Facility as provided in SECTION 17 - PRICE SCHEDULES. 11.02 Termination of Joint Use by the Tenant (a) Where the Tenant desires, at any time, to discontinue the Joint Use of a Facility, it shall give to the Owner an appropriate Joint Use Request in the form provided in SECTION 16 - FORMS, which shall specify the location of the Facility in question and the Tenant shall remove from the Facility any and all of its Attachments. Upon being satisfied that all Attachments of the Tenant have been removed from the Facility, the Owner shall indicate acceptance by signing the Joint Use Request and shall return a copy to the Tenant. (b) Except as provided in Section 11.02(c), the Tenant shall pay to the Owner the full rental for the Facility for the calendar year in which the Attachments are removed. 11-3 (c) Where in the five (5) years immediately preceding removal of the Attachments, the Owner has, at the request of the Tenant, incurred expenses to provide for Joint Use of the Pole, the Tenant shall pay rental for the Pole from the date of removal of the Attachments to the date five (5) years after the date of Attachment to the Pole. 12-1 SECTION 12 - HIERARCHY OF SIGNING AUTHORITY 12-01 Transaction Approvals Transactions listed below require the signing authorities as shown: POWER NEWFOUNDLAND TRANSACTION COMPANY TELEPHONE Agreement Approval President President Amendment of Administrative Vice-President Vice-Pres ident Practices Amendment of Construction Vice-President Vice-Pres ident Practices President President Notice of Default Superintendent Engineer - Outside Joint Use Request Plant Termination of Agreement President President Transactions not specifically listed above may be approved by the signature of a single officer of the Power Company and a single officer of Newfoundland Telephone. 12-2 12.02 Change of Authorities By written notice under this Agreement, either Party may change their own signing authorities as provided in Section 12.01. 13-1 SECTION 13 - RIGHT8-OF-WAY 13.01 Tenant Riqhts-of-Way Where existing Facilities are to be brought under Joint Use, the Tenant shall be responsible for obtaining such easements or rights-of-way as it may require and shall bear the associated costs. 13.02 Joint Riqhts-of-Way (a) Where new Joint Use Facilities are proposed, the Owner shall obtain joint easements and joint rights-of-way. When the Parties mutually agree, the Tenant may obtain the joint easements and joint rights-of-way at the expense of the Owner. Neither Party warrants to the other that any joint easement or joint right-of-way obtained by them is valid or sufficient for the Party's purpose. It is understood that neither Party can guarantee that the easement grantor has the legal authority to grant the required easement. Each Party will be responsible for its own relocation cost if such easement is invalid. (b) Where only verbal permission for Anchors is obtained and relocation or removal is required, then each Party shall 13-2 bear the associated cost of its own Facilities. 13.03 Distribution Line Easements All distribution line easements are to be acquired as outlined in Sections 13.02 and 13.06 and the Party installing the Pole is responsible for obtaining such easements. 13.04 No Warranty for Use of Owner's Riqhts-of-Wav The Owner gives no warranty of permission from property owners, municipalities or Others for the use of the Owner's right-of-way by the Tenant, and if objection is made and the Tenant is unable to adjust the matter satisfactorily within one hundred and eighty (180) days the Owner may then, by notice in writing at any time, require the Tenant to remove its Attachments from the Facilities involved, and the Tenant shall, within one hundred and eighty (180) days after receipt of the notice, remove its Attachments from the Facilities at its own expense. Nothing in this Section shall be deemed to confer to the Tenant any authority to maintain its Attachments on the Owner's Facilities for the period of one hundred and eighty (180) days or any portion thereof, or otherwise to infringe upon any legal rights of the property owners, municipalities or Others. 13-3 13.05 Clearing of Riqhts-of-Way Where the Tenant adds, Replaces, Transfers or Rearranges Poles and/or Attachments to existing Facilities, the Tenant shall be responsible for all necessary Line Clearing and/or trimming. At the request of the Tenant, the Owner may carry out the required tree clearing and/or trimming and the Tenant shall bear the cost. 13.06 Riaht-Of-Wav Acquisition The following procedures are to be followed when acquiring rights-of-way that are required for installation of Joint Use Facilities: (a) All rights-of-way shall be acquired by the acquisition of easement rights except where a licence is acquired or the fee simple title to the relevant property is purchased. (b) All rights-of-way boundaries shall be adequately defined (ie: referenced to landmarks, survey monuments, etc.) so as to provide for future boundary determination. While the location of Facilities in relation to the right-of- way boundaries should be indicated, Facilities should not be used as boundary references. 13-4 (c) All rights-of-way shall be obtained prior to the installation of Facilities by either Party. (d) Where an easement is required but cannot be obtained by negotiation and no practical alternate route exists, the easement shall be acquired through the procedures outlined in the Public Utilities (Acquisition of Lands) Act, R.S.N. 1990, c. P-48 or the Telecommunications Act, S.C 1993, c. 38. This procedure shall only be used as a last resort. (e) Installation of Facilities on property over which the property owners will only give written or verbal permission (ie. no easement) shall be avoided whenever possible. (f) An easement shall not be required where the Facilities are used only to service the particular property upon which they are installed. If there is a reasonable expectation that the Facilities may be used to service adjacent properties, reasonable efforts to obtain an easement shall be made, with adequate provision to extend the Facilities to such adjacent properties. (g) Where a right-of-way is required over Crown land, application shall be made a reasonable time before the 13-5 anticipated construction start date. In determining a reasonable time, the Parties shall have reference to the practices of the appropriate government authority. (h) All reasonable efforts shall be made to ensure that the name of the grantor(s) appearing on the right-of-way document reflects current ownership of the pertinent property. Duly executed right-of-way documents shall be registered at the Registry of Deeds for Newfoundland and thereafter filed at the records office of each Party. 14-1 SECTION 14 - RENTALS 14.01 Revenue Neutrality (a) In this section "revenue neutrality" shall be achieved in the calendar year following the attainment of a Joint Ownership Ratio of 60% Power Company, 40% Newfoundland Telephone. (b) Until revenue neutrality is achieved rentals between the Parties shall be calculated as provided in this Section 14. (c) After revenue neutrality is achieved the Parties shall not be required to: (i) perform the calculations necessary to comply with Sections 14.02, 14.03, 14.04, 14.05, 14.06, and 14.09, or (ii) to comply with Sections 14.08 (b) and (c) and 14.10. 14.02 Annual Carrying Charge The annual carrying charge for Joint Use Pole Units for each Party shall be calculated by multiplying its average embedded 14-2 cost of a Pole Unit by its annual carrying charge rate except that, in each calendar year, the difference between the annual carrying charge rates of the Parties, and the difference between the average embedded costs of the Parties, shall not exceed 5 percent of the lower rate or cost. 14.03 Composition of Annual Carrying Charge Rate The annual carrying charge rate of each Party shall include without limitation, such expense items as depreciation, maintenance, administration and taxes as well as return on Joint Use Pole Units. 14.04 Basis of Rental Rates Rental rates shall be computed annually and represent an equitable share, of the annual carrying charge for each Pole Unit. The annual rental rate for each Pole Unit of a Party, shall be calculated by multiplying the annual carrying charge, as calculated in Section 14.02, by the percentage of the Joint Use Ratio ascribed to the other Party in ARTICLE VIII - RENTALS. 14.05 Composition of Embedded Costs The average embedded cost of a Joint Use Pole Unit shall be 14-3 assumed to be equal to the average embedded cost of all treated wood Pole Units owned by each of the Parties. Embedded costs shall include, without limitation, engineering, design and construction costs, land and easement acquisition costs, and material, labour and Owner's overhead costs. Notwithstanding anything contained in this Agreement, Newfoundland Telephone's calculation of average embedded cost shall not include the embedded cost of Pole Units formerly owned by Terra Nova Telecommunications Inc. , and, the Power Company's calculation of average embedded cost shall not include the embedded cost of Pole Units used as transmission line poles. 14.06 Calculation of Annual Carrying Charge The Annual Carrying Charge per Pole Unit shall be calculated using the embedded costs as at December 31 in the preceding '•-" year and the annual carrying charge rates as at December 31 of --• the preceding year. The annual rental rates shall be effective for each calendar year. 14.07 Joint Use File Both Parties agree to use the Joint Use File to record the following: 14-4 (a) the total number of Joint Use Poles; (b> the total number of Attachments by the Parties and by Others; (c) the number of Poles occupied by each Party as Owner and as Tenant; (d) the number of Attachments made by each Party; and (e) the number of Poles occupied by CATV Companies. Both Parties shall have access to the Joint Use File and all transactions between the Parties or between the Parties and Others shall be based on the numbers contained in the Joint Use File. The Joint Use File shall be based upon the system for recording Pole and Attachment numbers, developed and currently used by the Power Company, and Newfoundland Telephone shall continue to reimburse the Power Company for access to the Joint Use File in accordance with the present arrangement between the Parties. The system may be updated or replaced by written agreement of both Parties. 14.08 Data to be Exchanged Annually No later than March 15 of each year, each Party shall submit 14-5 a written statement to the other Party giving the following information: (a) the total number of Poles owned on December 31 of the preceding year; (b) the total embedded cost of Pole Units owned on December 31 of the preceding year; (c) the calculation of the actual carrying charge rate for the preceding year; (d) total number and location of Joint Use Poles occupied as Owner on December 31 of the preceding year; (e) total number and location of Joint Use Poles occupied as Tenant on December 31 of the preceding year; and (f) total number and location of future Joint Use Poles owned by each Party which have passed the five (5) year Joint Use occupancy time frame as provided in Section 6.04. In the event of any discrepancy between the information provided by the Parties, the discrepancy shall be referred to the Joint Use Committee- 14-6 14-09 Net Annual Rentals (a) Net annual rentals for each calendar year shall be calculated annually prior to April 1 of the current year by multiplying the Owner's number of Joint Use Poles at December 31 of the previous year by the rental rate calculated in Section 14.04. One twelfth (1/12) of the difference between the net annual rentals of the Parties shall be invoiced monthly throughout the calendar year. For the months of January, February and March of the current year, the amount invoiced shall be the same as invoiced in December of the preceding year, and an adjustment for these three months shall be calculated and invoiced as soon as the net annual rentals are calculated for the current year. (b) In the event that the calculation of the net annual rentals is delayed beyond April 1, the amount invoiced monthly until the calculation is completed shall be the amount invoiced in March; and an adjustment shall be calculated and invoiced as soon as the calculation is completed. 14.10 Details of Rental Calculations The Joint Use rentals for the period January 1 to December 31, 14-7 1994 as detailed on Sheets 2 to 9 inclusive of EXHIBIT A of this Section are hereby approved and similar calculations shall be performed annually. The form attached as Sheet 1 of EXHIBIT A of this Section shall be used for approval of the » annual calculation of Joint Use Rentals. 14.11 Annual Review Utilizing the information provided under Sections 14.08 and 14.09, and such additional information as may be necessary, the Parties shall carry out an annual review in order to ascertain whether the required Joint Ownership Ratio specified in Clause 7.02 of ARTICLE VII - OWNERSHIP has bean achieved. Administrative Practices Section 14 Exhibit A Sheet 1 of ° APPROVAL Of RENTALS Joint use rentals for the period January I ,1994 to December 31 ,1994 as ralcuiated in the Administrative Practices Section 14 Exhibit A in the attached sheets are hereby approved. NEWFOUNDLAND TELEPHONE COMPANY LIMITED NEWFOUNDLAND LIGHT & POWER CO. LIMITED DATE : DATE : Administrative Practices Section 14 Exhibit A Paae 2 of 9 STATKHKKT OF RRKTALS FOR JANPART 1. 1994 TO DECKMBKR 31. 1994 THE NUMBER OF JOINT USE POLES AT DECEMBER 31, 1993 AS RECORDED IN THE COMPUTERIZED JOINT USE FILE IMPLEMENTED BY BOTH PARTIES: JOINT USE POLES TELEPHONE POWER OWNED OWNED 44,867 118,482 TELEPHONE COMPANY RENTALS FOR POWER COMPANY POLES 118,482 JOINT USE POLES @ $42.94 S5,087,617 POWER COMPANY RENTALS FOR TELEPHONE COMPANY POLES 44,867 JOINT USE POLES @ $66.02 S2.962,119 NET ANNUAL RENTAL S2,125,498 NET MONTHLY BILLING TO TELEPHONE COMPANY FOR PERIOD JANUARY 1. 1994 TO DECEMBER 31, 1994 1/12 OF 2125498 S177,124.81 Administrative Practices Section 14 Exhibit A Page 3 of 9 CALCOLATIOH Of JOIlfT PSK KKHTAL RATES KFFBCTrVK OANOARY 1. 1994 TO DBCKMBKR 31. 1994 NLP EMBEDDED COST NTC EMBEDDED COST AT DECEMBER 31, AT DECEMBER 31, 1993 1993 BARE POLES 83,481,930 ANCHORS 22.46% 18,750,041 RIGHT-OF-WAY 679,529 GROUNDING 2.30% 1,920,084 TOTAL PLANT 39,158,714 LESS 0.14% FOR 71C 55,372 LESS GUY COST 7.00% 2,741,110 TOTAL 104,831,585 36,362,232 # OF POLES IN SERVICE 189,956 62,574 EMBEDDED COST/POLE S551.87 S581.ll ACCR 19.45% 18.99% • JUR 60.00% 40.00% MAX. VARIANCE 5.00% 5.00% ANNUAL RENTAL RATE WITH JUR OF 40% NTC - 60% NLP NTC RENTAL RATE/NLP POLE S551.87 • 19.45% • 40.00% = $42.94 NLP RENTAL RATE/NTC POLE $579.46 * 18.99% • 60.00% = $66.02 NOTE : NTC EMBEDDED COST OF S581.ll IS LIMITED TO $579.46 BECAUSE OF 5% CAP Administrative Practices Section 14 Exhibit A Page 4 of 9 ANNUM. CARRTIHC CHARGE RATKS 1993 POWER COMPANY TELEPHONE COMPANY ANNUAL FIXED CHARGE RATE 16.77% 16.35% MAINTENANCE 2.69% 2.53% 19.45% 18.99% Administrative Practices Section 14 Exhibit A Paae 5 of 9 NEWFOUNDLAND TKLKPBONK COMPANY LIMITED CALCULATION or LKVKLLIIKD RATS OF RgTDRM AND IHCOKK TAX 1993 COST OF MONEY DEBT S1.20\ 6 10.00* = 5.12% PREFERRED 0.20% e 4.60% = 0.01% COMMON EQUITY 48.60% 6 "" 13.00% = 6.32% WEIGHTED AVERAGE COST OF CAPITAL 11.45% CAPITAL RECOVERY FACTOR 11.45% FOR 27 YEARS 12. 10% LESS DEPRECIATION STRAIGHT LINE FOR 27 YEARS LIFE 3.70% LESS DEFERRED TAX { 2.95% - 3.70% ) * 44.84% -0. 34\ RATE OF RETURN 8.73% LEVELLIZED BOND INTEREST 5.12b.12% «* 8.738.73% 3.90% 11.45% LEVELLIZED CAPITAL COST 1212.10. 10% -» 3.703.70% 2.95% 11.45% + 3.70% INCOME TAX CAPITAL RECOVERY FACTOR 12.10% LESS LEVELLIZED CAPITAL COST 2.95% 9.14% LESS LEVELLIZID BOND INTEREST 3.90% 5.24% INCOME TAX € 44.84% 5.24% -5.24% 4.26% {1 - 44.84%) CALCULATION OF AVERAGE ANNUAL FIXED CHARGE RATE RATE OF RETURN 8.73% STRAIGHT LINE DEPRECIATION 3.70% INCOME TAX 4.26% DEFERRED TAX -0.34% AVERAGE ANNUAL FIXED CHARGE RATE 16.35% Administrative Practices Section 14 Exhibit A Page 6 of 9 HKWyOONDLAND LIGHT fc POWKR CO. LIKITED CALCULATION Of LgVKLLIIKD RATE OT RETURH AND IHCOKK TAX 1993 COST OF MONEY DEBT 49.30% e 9.87% 4.87% PREFERRED 3 .S6% • e 9-S3% 0.34% COMMON EQUITY 47. 13% e 13.50% 6.36% WEIGHTED AVERAGE COST OF CAPITAL 11.57% CAPITAL RECOVERY FACTOR 11.57% FOR 27.8 YEARS LESS DEPRECIATION STRAIGHT LINE FOR 27.8 YEARS LIFE LESS DEFERRED TAX ( 3.12% - 3.60% ) • 46-40% -0.22% RATE OF RETURN 8.77% LEVELLIZED BOND INTEREST 4.87% » 8.77% 3.69% 11.57% LEVELLIZED CAPITAL COST 0.1214703 « 0.04 3.12% 0.1156774 • 0.04 INCOME TAX CAPITAL RECOVERY FACTOR 12.15% LESS LEVELLIZED CAPITAL COST 3.12% 9.03% LESS LEVELLIZED BOND INTEREST INCOME TAX 6 46.40% * S.34% - 5.34% 4.62% (1 - 46.40%) Administrative Practices Section 14 Exhibit A Page 7 of 9 1993 8.77% RATE OF RETURN STRAIGHT LINE DEPRECIATION 3.60% INCOME TAX 4.62%. -0.22% DEFERRED TAX ANNUAL FIXED CHARGE RATE 16.77% 2.69% MAINTENANCE TOTAL CARRYING CHARGE RATE 19.45% Administrative Practices Section 14 Exhibit A Page 6 cf 9 NKWFOONDLAKD TKLKPHONK COMPANY LIMITED CALCOLATIOH OP TRKATKD POLK C ANCHOR OPERATING COST 1993 POLE S ANCHOR MAINTENANCE MAINTENANCE COST S394,715 POLE & ANCHOR PLANT IN SERVICE (AVERAGE 1993) 537,371,890 MAINTENANCE FACTOR 394715 « 100 1.04* 37871890 OVERHEAD OUTSIDE PLANT (PLANNING 6 ENGINEERING) $53,609 BILLING RECORDS, ETC. $52,672 EXECUTIVE & ADMINISTRATION $268,390 OTHER (GENERAL SERVICES, LICENSES, ETC.) $227,730 $602,401 POLE & ANCHOR PLANT IN SERVICE (AVERAGE 1993) $37,871,890 OVERHEAD FACTOR 602401 • 100 1.59% 37871890 TREATED POLE & ANCHOR MAINTENANCE 1.59* + 1.04% 2.63% Adrai.ni8crati.ve Practices Section 14 Exhibit A Page 9 of 9 NEWFOUNDLAND LIGHT t. POWER CO. LIMITED CALCULATION OF TREATED POLK t ANCHOR OPERATING COST 1993 MAINTENANCE COSTS - POLE, CONDUCTOR, FITTINGS 4221969 * 0.2 S 844,394 OPERATING SUPERVISION 587,175 GENERAL EXPENSES CUSTOMER SERVICES - SUPERVISION, STATISTICS, £ FORECASTS . S5,000 ACCOUNTING - SUPERVISION, PLANT, BILLING, AUDITING, TAXES £ ASSESSMENTS 51,408,909 GENERAL - SUPERVISION & ADMINISTRATION, LEGAL, GENERAL OPERATIONS, PUBLIC LIABILITY INSURANCE, SAFETY. S433.160 TOTAL S2,778,638 AVERAGE COST OF TREATED POLE AND ANCHOR IN PLANT - 1993 101785100 •*• 10S048064 = 5103,416,582 2 TREATED POLE AND ANCHOR OPERATING COST AS PERCENT OF POLE AND ANCHOR COST 2778637.8 • 100 2.69% 103416S82 15-1 SECTION IS - RENTALS FROM OTHERS 15.01 Sharing of CATV Rental Payments (a) The Parties agree that all rentals payments collected from the CATV companies for attachment to Joint Use Poles shall be shared in the ratio of 62.5% Newfoundland Telephone, 37.5% Power Company up to the common rates per Pole charged by the Parties. CATV revenues generated by rate differentials higher than the common rates shall be shared on a 62.5% / 37.5% basis in favour of the Party with the higher rate. (b) The sharing of rental payments in Section 15.01 (a) above shall be achieved according to the following rules: (i) Where the rate charged to the CATV company for the Attachment is the same whether the Pole is owned by Newfoundland Telephone or the Power Company: (A) Newfoundland Telephone 62.5% (B) Power Company 37.5% (ii) Where the rate charged to the CATV company for the Attachment is greater if Newfoundland Telephone owns the Pole than if the Power Company owns the Pole: 15-2 (A) Newfoundland Telephone 62-5% (B) Power Company 37.5% (iii) Where the rate charged to the CATV company for the Attachment is greater if the Power Company owns the Pole than if Newfoundland Telephone owns the Pole: (A) Newfoundland Telephone 62.5% of the applicable Newfoundland Telephone rate plus 37.5% of the difference between the Newfoundland Telephone rate and the Power Company rate; (B) the Power Company 37.5% of the applicable Newfoundland Telephone rate plus 62.5% of the difference between the Newfoundland Telephone rate and the Power Company rate. 15.02 Calculation and Collection of CATV Rental Payments (a) CATV rental payments between the Parties shall be calculated on a monthly basis utilizing the Pole counts contained in the jointly operated Joint Use File. The Parties agree to maintain Attachment records up to date, to take whatever action is reasonable to collect outstanding payments from CATV companies (current and back billing) and to take all reasonable steps to resolve i 15-3 bona fide disputes with CATV companies regarding CATV billing. The form attached as EXHIBIT A of this Section shows a typical calculation of the amount due monthly. (b) To ensure that rental payments shared are based on actual CATV payments, an annual adjustment for each calendar year shall take place in the month of March of the following year. The form attached as EXHIBIT B of this Section shows a typical calculation of the adjusted amount due monthly. c 15.03 Cumulative Collection Ratio (a) In respect of the sharing of rental payments, as provided in Sections 15.01 and 15.02, the Parties shall share the rental payments actually collected from the CATV companies so long as: (i) neither Party's annual cumulative collection ratio is below 80% of the amount billed; and (ii) the difference between the annual cumulative collection ratios of the two Parties is not more than 10%. (b) The cumulative collection ratio shall be the ratio of the amounts collected to the amounts billed. The annual cumulative collection ratio for each calendar year, shall 15-4 be calculated in the month of March of the following year. (c) Where either of the events provided in Sections 15.03 (a) (i) or (ii) occur, then the Party with the higher annual cumulative collection ratio shall have the right but not the obligation to re-open and renegotiate the sharing of rental payments as provided in Sections 15.01 and 15.02. Such renegotiations shall be conducted between Vice- Presidents of the Parties. (d) This Section 15.03 shall not become effective until the calendar year following the expiration of six (6) months after the date of an order of the Public Utilities Board respecting the Power Company's current CATV rate application. 15.04 Distribution of Rental Payments from Others (a) Subject to Section 15.04 (b) below, it is agreed that payments made by any Others for Attachments in the communication space of Joint Use Poles shall be shared between Newfoundland Telephone and the Power Company in the manner provided in Section 15.01 as if the phrase "CATV Companies" in 15.01 read "Others". 15-5 (b) Where only one Party has established a rate to be charged to a specific person, firm, or corporation, then the payments shall be shared equally between the Parties until January 1st of the calendar year in which the other Party establishes a rate to be charged to that specific person, firm or corporation. Beginning on that January 1st, the payments shall be shared as if both attachment rates had existed as of January 1st. 15.05 Payment All payments under this Section 15 shall be handled in accordance with ARTICLE XV - INVOICES AND PAYMENTS. Administrative Practices Section 15 Exhibit "A" Sheet 1 of 1 March Adjustment of CATV Revenue Sharing Based on Billing CATV Company: XXXXXXXXXX For Month of August 1993 (September Billing) NP OWNED POLES Reg 3-P Poles NPRate NTC Rate >SHARING 1 5753 1.2675 0.81 From NP Share NTC Share Common - 0.81 $1,747.47 $2,912.46 Differential -0 4575 $1.645 00 S 987.00 2 0 1.161 0.51 Common -0.51 $ 0.00 $ 0.00 Differential -0.7575 $ 0.00 $ 0.00 Total Billed by NP $4,705.53 NTC OWNED POLES Reg 3-P Poles NPRate NTC Rate SHARING 1 2234 1.2675 0.81 From NP Share NTC Shaare Common - 0.81 $ 678.58 $1,130.96 Differential - 0 $ 0.00 $ 0.00 2 0 1.2675 0.51 Common - 0.51 $ 0.00 $ 000 Differential - 0 $ 000 $ 0.00 Total Billed by NTC $1,809 54 Total Share $4.071.05 $5,030.42 Billed $7,291.93 $1,809.54 Send/(Received) $3,220.88 ($3,220.88) To ensure that revenues are shared based on actual CATV payments, an annual adjustment for the calendar year shall take place in the month of March of the following year. Administrative Practices Section 15 Exhibit "B" Sheet 1 of 1 March Adjustment of CATV Revenue Sharing Based on Collections CATV Company: XXXXXXXXXX For Month of August 1993 (September Billing) NP OWNED POLES Reg 3-P Poles NP Rate NTC Rate .-• SHARING 1 4053 1.161 0.81 From NP Share NTC Share Common - 0.81 $1,231.10 S2.051.83 Differential -0.351 $ 889.13 $ 533.48 2 0 1.161 0.51 Common -0.51 $ 000 $ 0.00 Differential -0.651 $ 0.00 $ 0.00 Total Collected by NP $4,705.53 NTC OWNED POLES Reg 3-P Poles NP Rate NTC Rate SHARING 1 2234 1.161 0.81 From NP Share NTC Shaare Common - 0.81 $ 678.58 $1,130.96 Differential - 0 $ 0.00 $ 000 2 0 1.161 0.51 Common - 0.51 $ 0.00 $ 0.00 Differential - 0 $ 0.00 $ 0.00 Total Collected by NTC $1 809.54 Total Share $2,798.80 $3,716.27 Collected $4,705.53 $1,809.54 Should Have $1,906.73 ($1,906.73) Sent/(Received) ($3,220.88) $3.220 88 Owned by/(To) ($1,314.15) $1,314.15 { 16-1 SECTION 16 --FORMS 16.01 General The purpose of this Section is to provide a completed exhibit of the Joint Use Request form. 16.02 Joint Use Request The form attached as Exhibit A shall be used by the Owner/Tenant to: (a) Request the placement or Replacement of Joint Use Facilities; (b) Obtain permission from the Owner to establish the Joint Use of Facilities; (c) Notify the Owner of a cancellation of Joint Use Facilities; (d) Request that the other Party Transfer its Attachments from an existing jointly used Facility to Replacement Facility; 16-2 (e) Update or correct the Joint Use Pole File to reflect any modification in Joint Use Facilities in the field; or (f) Request that the Owner perform miscellaneous work on the Joint Use Facilities. JOINT USE REQUEST — -*- n 1 D i « r\ Sheet oi « r-rom/ C Narr-° ; Feauesi Dale To/Ccmnanv name ; Drawing included (Y'N> -: -nip Wo"< lR°n""P^ Syj *«LP Joo * • L_i Altacnmenl Work NTCJoo »• Plan * • Joint Use " ! Fulure Join! Use : Non Joint Use Associaiea NTC-'Jco » *^!an t j -\nprnvpr1 f NLP Area r-jTC Reaion NTC Excr-anoe * Reason icr Work 5_J New Service i-J Upgrading G Deterioration O Clearance CD Other ispecily below) 1 i STRUCTURE TABLE — RECORD INITIAL ACTIVITY ONLY SIR ACT NEW POLE* CLS HGT MATL TREAT ANC NTC POLE # EXISTING POLE # OWNER CATV Activity Codes: Apply (A) Cancel: (C) Transler (T) Anchof: (Y) Misc. Work: (M) Placement: (P) Replacement: (R) Modidcation: (X) CATV (Y) (a) OFFER: • Accepted D Rejected Signed:. Oate: Reason lor Rejection: (b) Pole Installation Complete: I 1 Signed: Trans Req'd 8y: L J_ D Service • Non Service (c) Transfers Completed NLP 1 1 Signed: JUS Updated By: (d) Transfers Completed NTC: I t Signed: JUS Updated By: (e) Poles Removed: I 1 Signed: JUS Updated By: . (!) Apply/Cancel Approved: 1 1 Signed: JUS Updated By: . (g) Misc. Work Complete: 1 f Signed Fom.No lit ft«v. OS/90 17-1 SECTION 17 - PRICE SCHEDULES 17.01 Sacrificed and Structural Value Price Schedules The Sacrificed and Structural Value schedules are included in these Administrative Practices to provide a pricing mechanism for Poles prematurely displaced or for the sale of Poles in place. The schedules are not intended to provide the basis for determining the sale price of Poles designed to achieve the balance of Pole ownership as stated in the Agreement. (a) Sacrificed Value of Poles (EXHIBIT A) This schedule covers the cost to be recovered by the Owner for Poles prematurely displaced to meet the requirements of the Tenant. The Owner is to remove and retain ownership of the displaced Pole. The Owner will not bill the Tenant for the Sacrificed Value of Poles Replaced to meet the requirements of the Owner. (b) Structural Value of Poles and Anchors (EXHIBIT B) This schedule covers the sale price of Poles and Anchors sold in place. Pole identification shall be changed at the time of such sale. 17-2 17.02 Price Schedule Update The Sacrificed Value and Structural Value of Poles for the period January 1, 1994, to December 31, 1994, as shown in EXHIBITS A and B of this Section are hereby approved. These values shall be reviewed by the Joint Use Committee once a year and adjustments shall be made as required. The forms attached as Sheet 1 of EXHIBITS A and B shall be used for approval of Sacrificed Value and Structural Value of Poles as required. 17.03 Schedule of Transfer Cost Factors The schedule of Transfer cost factors (EXHIBIT C) is included in these Administrative Practices to provide the cost factors for calculating Transfer costs for Replacement of Facilities. ADMINISTRATIVE PRACTICES SECTION 17 EXHIBIT A SHEET 1 of 2 SACRIFICED VALUE OF POLES The Sacrificed value of Poles for the period to as described in the Administrative Practices SECTION 17 EXHIBIT A attached and dated are hereby approved. NEWFOUNDLAND TELEPHONE COMPANY NEWFOUNDLAND LIGHT & POWER LIMITED CO. LIMITED DATE: DATE: SACRIFICE VALUE OF POLES 1994 E Conaition <- 30 Ft. 35 Ft. 40 Ft. >- 45 Ft. Anchor 0 100.000% 699.85 777.52 836.02 877.19 344.35 1 96.471% 675.15 750.08 806.52 846.24 332.20 2 93-296% 652.93 725.40 779.97 818.39 321.27 3 90.286% 631.86 702.00 754.81 791.98 310.90 4 87.428% 611.86 679.77 730.92 766.91 301.06 5 84.618% 592.20 657.93 707.42 742.26 291.38 6 81.873% 572.99 636.58 684.47 718.18 281.93 7 79.188% 554.20 615.71 662.03 694.63 272.68 8 76.559% 535.80 595.26 640.05 671.57 263.63 9 73.979% 517.74 575.20 618.48 648.94 254.75 10 71.449% 500.03 555.53 597.33 626.75 246.04 11 68.966% 482.66 536^3 576.57 604.96 237.49 12 66.528% 465.59 517.27 556.19 583.58 229.09 13 64.129% 448.81 498.62 536.13 562.53 220.83 14 61.789% 432.43 480.42 516.57 542.01 212.77 15 59.487% 416.32 462.53 497.32 521.82 204.84 16 57.230% 400.52 444.98 478.45 502.02 197.07 17 55.020% 385.06 427.79 459.98 482.63 189.46 18 52.858% 369.93 410.98 441.90 463.67 182.02 19 50.472% 353.23 392.43 421.96 442.74 173.80 20 48.676% 340.66 378.47 406.94 426.98 167.62 21 46.660% 326.55 362.79 390.09 409.30 160.67 22 44.866% 313,99 348.84 375.09 393.56 154.50 23 42.783% 299.42 332.65 357.67 375.29 147.32 24 40.924% 286.41 318.19 342.13 358.98 140.92 25 39.119% 273.77 304.16 327.04 343.15 134.71 26 37.369% 261.53 290.55 312-41 327.80 128.68 27 35.675% 249.67 277.38 298.25 312.94 122.85 28 34.036% 238.20 264.64 284.55 298.56 117.20 29 32.452% 227.11 252.32 271.31 284.67 111.75 30 30.923% 216.41 240.43 258.52 271.25 106.48 31 29.447% 206.08 228.96 246.18 258.31 101.40 32 28.025% 196.13 217.90 234.29 245.83 96.50 33 26.634% 186.40 207.09 222.67 233.63 91.71 34 25.328% 177.26 196.93 211.75 222.18 87.22 35 24.047% 168.29 186.97 201.04 210.94 82.81 36 22.808% 159.62 177.34 190.68 20007 78.54 37 21.607% 151.22 168.00 180.64 189.53 74.40 38 20.441% 143.06 158.93 170.89 179.31 70.39 39 19.307% 135.12 150.12 161.41 169.36 66.48 40 18.204% 127.40 141.54 152.19 159.68 62.69 41 17.132% 119.90 133.21 143.23 150.28 58.99 42 16.088% 112.59 125.09 134.50 141.12 55.40 43 15.073% 105.49 117.20 126.01 132.22 51.90 44 14.083% 106.67 109.50 117.74 123.53 48.49 45 13.117% 109.14 107.12 109.66 115.06 45.17 46 12.171% 111.57 110.23 105.41 116.21 41.91 47 11.357% 113.65 112.90 108.98 120.19 39.11 48 10.651% 115.46 115.23 112-07 123.65 36.68 49 9.961% 117.23 117.49 115.10 127.02 34.30 50 9.284% 118.96 119.72 118.06 130.33 31.97 51 8.623% 120.66 121.89 120.96 133.57 29.69 52 7.978% 122.31 124.02 123.79 136.72 27.47 ADMINISTRATIVE PRACTICES SECTION 17 EXHIBIT B SHEET 1 OF 2 STRUCTURAL VALUE OF POLES The Structurato l Value of Poles for the period _as described in the Administrative Practices SECTION 17 EXHIBIT B attached and dated ___ are hereby approved. NEWFOUNDLAND TELEPHONE COMPANY NEWFOUNDLAND LIGHT & POWER LIMITED CO. LIMITED DATE: DATE: STRUCTURAL VALUE OF POLES 1994 IE Conaition <- 30 F!. 35 Ft. 40 Ft. >- -45 Ft. Anchor 0 100.000% 813.31 956.11 -..115.51 1,190.64 344.35 1 96.471% 779.57 917.C7 1.070.54 1,142.42 332.20 2 93.296% 749.22 881.94 1.030.08 1.099.04 321.27 3 90.286% 720.44 848.64 991.73 1.057.91 310.90 4 87.428% 693.11 817.02 955.31 1,018.86 301.06 5 84.618% 666.25 785.93 919.50 980.46 291.38 6 81.873% 640.01 755.56 884.52 942.95 281.93 7 79.188% 614.34 725.86 850.31 906.27 272.68 3 76.559% 589.20 696.77 816.81 870.34 263.63 9 73.979% 564.53 668.22 783.93 835.09 254.75 10 71.449% 540.35 640.23 751.70 800.52 246.04 11 68.966% 516.61 612.76 720.06 766.59 237.49 12 66.528% 493.30 585.79 688.99 733.28 229.09 13 64.129% 470.36 559.25 658.42 700.50 220.83 14 61.789% 447.99 533.36 628.60 668.53 21Z77 15 59.487% 425.98 507.89 599.27 637.07 204.84 '.6 57.230% 404.40 482.92 570.51 606.24 197.07 17 55.020% 383.27 458.47 542.35 576.04 189.46 18 52.858% 362.60 434.55 514.80 546.50 182.02 19 50.472% 339.79 408.15 484.39 513.89 173.80 20 48.676% 322.62 388.28 461.51 489.35 167.62 21 46.660% 303.35 365.98 435.82 461.81 160.67 22 44.866% 286.20 346.13 412.96 437.29 154.50 23 42.783% 266.28 323.08 386.42 408.83 147.32 24 40.924% 248.51 302.52 362.73 383.43 140.92 25 39.119% 231.25 282.55 339.73 358.77 134.71 26 37.369% 214.52 263.19 317.43 334.86 128.68 27 35.675% 198.32 244.44 295.84 311.71 122.85 28 34.036% 182.65 226.31 274.96 289.31 117.20 29 32.452% 167.51 208.79 2S4.77 267.67 111.75 30 30.923% 152.89 191.87 235 29 246.78 106.48 31 29.447% 138.78 175.54 216.4S 226.61 101.40 32 28.025% 125.19 159.81 198.36 207.18 96.50 33 26.634% 111.89 144.42 180.64 188.17 91.71 34 25.328% 99.40 129.97 163.99 170.33 87.22 35 24.047% 87.15 115.80 147.67 152-83 82.81 36 22.808% 75.31 10£09 131.88 135.90 78.54 37 21.607% 63.83 88.80 116.58 119.49 74.40 38 20.441% 52-68 75-90 101.72 103.55 70.39 39 19.307% 41.84 63.36 87.27 88.06 66.48 40 18.204% 31.29 51.15 73.22 72.99 62.69 41 17.132% 21.04 39.29 59.56 58.34 58-99 42 16.088% 11.06 27.74 46.25 44.07 55.40 43 15.073% 1.36 16.51 33.32 30.21 51.90 44 14.083% 5.56 20.70 16.68 48.49 45 13.117% 8.39 3.43 45.17 46 12.171% 41.91 47 11.357% 39.11 4fl 10.651% 36.68 49 9.961% 34.30 50 9.284% 31.97 51 8.623% 29.69 52 7.978% 27.47 ADMINISTRATIVE PRACTICES SECTION 17 EXHIBIT C TRANSFER COST FACTORS POLE POLE AGE FACTOR AGE FACTOR 0 1.00 31 0.39 1 0.99 32 0.37 2 0.97 l! ' 33 0.35 3 0.96 34 0.33 4 0.94 35 0.30 5 0.92 36 0.28 6 0.90 37 0.26 7 0.88 38 0.24 8 0.87 39 0.22 9 0.85 40 0.21 10 0.83 41 0.19 11 0.81 42 0.17 12 0.79 43 0.16 13 0.77 44 0.14 14 0.76 45 0.13 15 0.74 46 0.12 16 0.72 47 0.10 17 0.70 48 0.09 18 0.68 49 0.08 19 0.66 50 0.07 20 0.64 51 0.07 21 0.62 52 0.06 22 0.60 53 0.05 23 0.57 54 0.05 24 0.55 55 0.04 25 0.53 56 0.03 26 0.51 57 0.03 27 0.49 58 0.03 28 0.46 59 0.02 29 0.44 60 0.02 30 0.42 18-1 SECTION 18 - JOINT USE BURIED CONSTRUCTION 18.01 Policy. Planning and Co-ordination (a) In any area it is mutually desirable to undertake Joint Use Buried Construction, suitable cost sharing and other arrangements should be agreed upon by representatives of both Parties. Both Parties shall co-ordinate early in the planning stage of Joint Use Buried Construction. (b) The Parties will decide upon acquisition of land, rights of way, commissioning of surveys, contracting, designing, engineering, administering and including Facilities of Others with respect to Joint Use Buried Construction. (c) Each Party is responsible for making its own arrangements for any contributions in aid of construction to which it may be entitled. (d) Joint plowing or the Joint Use of an underground duct and manhole system is not permitted under this Agreement. 18.02 Contracting Where Joint Use Buried Construction is undertaken by employing 18-2 the services of a contractor, the Party contracting the work shall provide adequate field supervision. The other Party shall provide a field representative for consultation. Materials which are not supplied under the terms of such a contract shall be supplied by the Party requiring same. 18.03 Specifications Joint Use Buried Construction shall meet the requirements of both Parties as provided in SECTION 19 - CONSTRUCTION PRACTICES. 18.04 Cost Sharing Each Party shall equally share in all costs related to the digging and backfilling of the Joint Use trench. This will also apply to the cost of providing special fill material, sand, ducts, service markers, etc. The Party undertaking the construction shall be paid 50% of the other Party's estimated share of the cost prior to construction and the balance of the other Party's share of the actual cost, shall be paid upon completion of construction. Except as otherwise provided in this Agreement, the cost of placing and connecting each Party's Facilities shall be borne by each Party separately. Each party shall bear the total cost of any trench provided for its sole use. 18-3 18.05 Maintenance Opening of Joint Use trenches for maintenance purposes shall be co-ordinated between the Parties whenever possible in order to eliminate unnecessary duplication of effort. The Parties shall equally share the cost of excavation and backfill where such work is required in the maintenance of the Facilities of both Parties. 19-1 SECTION 19 - CONSTRUCTION PRACTICES 19.01 General - C.S.A. Standards The objective of this Section is to provide guidelines and requirements for the construction of Joint Use Facilities. These practices shall meet, as a minimum, the requirements for Joint Use Construction of overhead and underground electrical supply and communications circuits as specified in C.S.A. Standard CAN3 - C22.3 No.l - M85 as of January l, 1994. Any future amendments to these C.S.A. Standards shall not be immediately incorporated into this Section but shall be reviewed by the Joint Use Committee which shall decide the time and extent of incorporation of such amendments to this Section. Unforeseen conditions or circumstances not covered in this Section shall be resolved in a co-operative manner to the mutual benefit of the Parties involved. Modifications and/or amendments to these practices shall be the responsibility of the Joint Use Committee as outlined in Section 2.02 of SECTION 2 - JOINT USE COMMITTEE. 19-2 19.02 Vertical Design Clearances and Separations Vertical clearances and separations for Joint Use structures shall be in accordance with C.S.A. Standard CAN3 - C22.3 No. 1 - M85, Clause 4*. These guidelines shall provide adequate clearances for power conductors, between power and communication conductors in the span, between communication cables and the ground, and adequate safe working space. Power and communication spacing for typical Joint Use structures is outlined by the sketches on Page 19-4. These sketches represent typical space allotments only and are not intended to reflect either the minimum or maximum space allotments of either Party. * NOTE: Vertical design clearances above ground may be prescribed by provincial or municipal legislation or regulation. In such a case, each Party's clearances must comply with the greater of that prescribed by C.S.A. Standard CAN3 - C22.3 No. 1 - M85, Clause 4 and the federal, provincial or municipal legislation or regulation applicable to that Party. In the case of new construction, which does not 19-3 include the replacement of existing Poles, the Parties shall comply with the greater of the standard, legislation or regulation applicable to either Party. Secondary space should be provided and reserved on Joint Use Poles in developed areas and in areas where future development is expected. Vertical design clearances above ground and separations on Joint Use Poles must provide for and reserve space for attachment of communication cables at both the top and the bottom of the communication space. 9150 -m -23") =OLE 3150 .— :23" =?'-£ . 6. _ -"rr. mi l '50 Tim- . =OWER 30WER a E ; : ATTACHUENT - iPACE SPACE s *' rauu. a n 1610mm i NEUTRAL AT7ACHUEN7 t 610mm t SPACE NEUTRAL o i a a 2PACE Illll l ZZUU. ZZUU. 01 9 o 2! 3R0UN0 SPACE SPACE x i a -J CLEARANCE a § ! SROUN0 a • 3R0UND u I X. in • CLEARANCE < •• CLEARANCE • SINGLE ZR "HREE SERVICE DROP STRUCTURE SECONDARY STRUCTURE PHASE STRUCTURE 12 200 mm (40') POLE 13 700 mm (451) POLE E POWER E POWER o o SPACE s SPACE n 610mm E 610mm NEUTRAL NEUTRAL o o SPACE o SPACE 1000m m E E couu. COUU. o SPACE SPACE 61 0 a , a a b GROUND a GROUND K Ul in CLEARANCE CLEARANCE < • TRANSFORMER & TAP THREE PHASE VERTICAL OFF STRUCTURE STRUCTURE NOTES: • 1. AS REQUIRED - TO UEET UINIUUU CSA STANDARD OR LEGISLATIVE AUTHORITY (EG. DEPT. OF TRANSPORTATION) •• 2. UINIUUU DISTSANCE FOR C0UUUNICAT10N DROP FROU POWER SPACE. ALLOTMENT OF POLE SPACE FOR JOINT USE POLES 19-5 19.03 Climbing Space Requirements - Joint Use Poles Climbing space requirements for Joint Use Poles, in accordance with C.S.A. CAN 3 - C22.3 No. 1 - 3.1.4, shall not be less than 750 mm x 750 mm past any conductor, cable, crossarm, or other Attachments of the Party using any lower part of the structure, and shall extend at least 1000 mm above and 1000 mm below the limiting Attachment. Communication main line cables and power secondary conductors shall, where practicable, be located on the same side of the structure, preferably on the street side to allow one side free from obstructions for climbing. Where it is necessary to have communication risers and power risers on the same Joint Use structure, they shall be arranged as indicated on Page 19-6 so as not to obstruct climbing or guying space. Communication drop wires shall preferably be distributed from the sides of Poles, as indicated on Page 19-6, to ensure the 750 mm climbing space through them. E ! £ I SPACE O 1 r> I u CABLE STRAND COMMUNICATION DROP WIRES DISTRIBUTED FROM CABLE STRAND i TSOmm : STREET LIGHT — •3 I r 91 '3MMUNICATI0N CABLE si El O C CLIM8IN0 SPACE o I o k. U w ac u. Ml O S FOR OUYEO STRUCTURES LOCATE COMMUNICATION o» CABLE ON SIDE OF X STRUCTURE OPPOSITE OUT COMMUNICATION DROP WIRES DISTRIBUTED FROM POLE STREET SIDE POWER CABLE COMMUNICATION CABLE ARRANGEMENT OP ATTACHMENTS MAIN LINE POLE ARRANGEMENT OF RISERS TERMINATION POLE CLIMBING SPACE. REQUIREMENTS JOINT USE POLES 19-7 19.04 Joint Use Anchors and Guvs Joint. Use Anchors and guy leads shall be selected such that the minimum safety factor for the Anchor, Anchor rod, and guys common to both Parties will not be less than the minimum of 1.6, as specified by C.S.A. Standard CAN3 - C22.3 No. 1 - M85, Clause 6. The types of Anchors and their intended use are listed below. All Anchors are to be installed as per the installation details on Pages 19-12 to 19-16. 250 mm dia. x 1200 mm Log - Standard Joint Use Anchor 250 mm dia. x 1800mm Log - Earth Anchor for use on heavy loaded structures as required 400 mm steel plate - Alternative to the 1200 mm log Anchor 500 mm steel plate - Alternative to the 1800 mm log Anchor Rock Anchor - For anchoring in rock. Power installed screw Anchor - Alternative to log and plate Anchors for installation by power digger equipment. Standard Anchor rod types for log and plate Anchors shall be 19 mm x 2400 mm or 2700 mm double eye or 25 mm x 2400 mm or 2700 mm triple eye, and shall be in accordance with C.S.A. specifications. The charts and instructions on Pages 19-9 to 19-16 shall be 19-8 used to ensure the Anchor arrangement, type, setting depth, and lead is adequate to satisfy both the power and communication guying requirements for standard Joint Use structures. 19-9 GUYING ARRANGEMENT & ANCHOR LOCATION The chart on Page 19-11 gives the number of guys, guy leads, number and size of Anchor rods and Anchor setting depths for each standard structure type. "S11 in structure types, denotes secondary. The guying arrangement may vary depending on the line angle for a particular structure. Drawings on Page 19-16 give an outline of the guying arrangement for typical structures. The guy lead is the horizontal distance from the Pole to the point where the rod enters the ground. The chart on Page 19-11 assumes level ground between the Pole and the Anchor. If the ground is sloping, the guy lead should be decreased or increased accordingly. Refer to the chart on Page 19-15 to determine the corrected guy lead for sloping ground. This chart also outlines the Anchor setting depth for sloping ground. In the case of two Anchors, the guy lead refers to the first Anchor, add 2 meters for the second Anchor. For rock Anchors or PISA Anchors, the guy lead will determine the Anchor location. The guy leads listed in the charts are for the standard Pole heights as indicated. Add .75m to the minimum and 1.2m to the maximum guy leads for each extra 1.5m of Pole height. The Anchor location should be chosen such that the guy lead will not be less than the minimum or exceed the maximum as determined from the chart. The Anchor setting depth is listed for each Anchor type at the minimum and maximum guy lead. The Anchor setting depth can be reduced at the maximum guy lead in most cases. Where the Anchor setting depth is omitted from the chart, it indicates that the Anchor type is not adequate for guying the structure type in question. PISA Anchors are to be set at a minimum setting depth of 1.5m and at maximum torque of the digger motor. The guying arrangement shown on Page 19-11 for "E" type structures refers to one side only. LINE ANCLE 1 - 80 DEC. (NOT DEAOENOEO) ANCHOR SHALL BE PLACED SO THAT COY WILL BISECT la-60° ANOLE. LINE ANGLE SO - 90 DEC (CEAOENOED) ANCHOR SHALL BE PLACED S DEO. (APPROX. 800 mm) OFF UNE AS SHOWN . LINE ANGLE OVER 90 DEC. (DEADENDED) ANCHORS SHALL BE PLACED IN UNE AS SHOWN. ANCHOR ATTACHMENTS - POLE LINES GUYING ARRANGEMEK" ii ANCHOR .CCATiON GUY '.UUSER ANCHOR NUUBER 3F -EAD L.NE SOD •:oo LOG iOO PLATE '800 LOG . £00 PLATE OF ! (mrnl iANGLE! . SO.- SIZE PISA UIN I UAX I U.N UAX UIN U1N I UAX . UIN I (DEC) ! :/0 AASC. = 2 ACSR- '50 ' : 3.7 4.6 6.7 --3/4" •500 1500 ! "500I -500 •as 10.7 i JO I 4.9 6.7 :-3/4" •soo '500 1 1680 1500 1 : 1 '9L :o.7 25 4.6 S.2 ' :-3/4" •500 :500 '680 1500 1 •c •0.7 £0 , 5.5 6.7 - -3/4" 500 •500 ; 1680. 1500 1 :cs :o.7 ZS 6.1 6.7 1 --3/4" '500 1500 1750 1 1500 ; •cs :o.7 60 : 4.9 6.7 : --1" 1830 •680 1680 1500 i I960 1 2 j :CL 10.7 SO '. : 6.7 8.2 : -3/4" '500 •500 1750 1500 IE 10.7 - i 5.2 6.7 : : -3/4" 1500 '500 1680 1300 1 1ES 10.7 2 ! : 5.2 6.7 ' "-'" 1830 1680 1880 1500 1980 1 2 !EL •0.7 - • 6.1 8.2 ' --3/4" •500 1500 •750 1500 1 -13 • •* ^ 4.9 d.7 --3/4" •soo 1500 1680 1S00 JBS •3.7 5.8 6.7 ' '-3/4" 500 1500 1680 1500 38S 5 0.7 30 1 ' 5.3 6.7 i :-i" 1680 1500 !900 1680 1500 1500 1750 1500 i 3BL !0.7 25 1 4.9 7.9 •-3/4" •500 1500 1880 1500 1 3C 12.2 SO 2 1 4.9 r.6 i ;-i" 1880 1830 1500 17S0 2 3CS 13.7 £0 3 1 6.1 7.6 2-3/4" 1500 1500 1750 1600 1500 1500 2 3CL 12.2 60 2 1 7.8 9.8 1-1" 1680 1500 1980 2 j 3E 12.2 - 2 • ; *•« 7.8 1-1" 1830 1500 1880 1500 1500 2 1 3ES 13.7 - 3 1 6.1 7.6 2-3/4" 1500 1500 1750 1500 3a 12.2 - 2 1 7.6 9.8 1-1" I 1880 1500 1980 2 4/0 AASC. 4/0 ACSR. 477 MCM 3B 10.7 r 1 1 5.5 6.7 1-3/4" 1500 1500 1600 1500 1 17 38S 10.7 13 ! 1 5.8 6.7 1-3/4" 1500 1500 1600 1500 1 3BS 10.7 17 2 1 6.4 7.3 ' —.$ " 1500 1500 1680 1600 1300 1500 1500 1500 2 3BL •0.7 •5 ! 6.1 7.9 •-3/4" '500 1500 1880 1500 1 3C 12.2 35 2 I 6.1 7.6 1-1" 1750 1600 1600 1500 1880 2 i 3CH 12.2 60 3 4.8 6.7 2-3/4" 1750 1500 1750 1600 1500 1900 1S00 2 3CS 13.7 35 3 1 4.9 7.8 2-3/4" 1800 1500 1900 1680 1500 1500 1750 1500 2 3CHS 13.7 60 4 1 6.4 7.8 |i-1"*1-3/4" 1880 1300 1900 1830 1800 1500 1900 1830 3 3CL 12.2 40 2 1 7.9 9.8 1-1" i 1810 1500 1980 2 3CLH 12.2 60 3 1 S.S 7.6 2-3/4" 1880 1500 1900 1680 2 3EH 12.2 - 3 1 4.8 6.7 2-3/4" 1750 1500 1980 1800 1880 2 3EHS 13.7 - 4 1 6.1 8.5 1-1"41-3/4" 1680 1500 1900 1680 1680 1500 1980 3 3ELH 12.2 - 3 1 5.5 7.8 2-3/4" 1880 1500 1900 1680 I STANDARD ROD TYPE 3/4--DOUBLE EY 1 "-TRIPLE EYE GUYING ARRANGEMENT & ANCHOR LOCATION CHART WIDTH or TREHCH TO BE KEPT TO A MINIMUM NOTE EARTH ANCHOR - LO« EARTH ANCHOR - PLATE NOTE; 1. ANCHOR LOOS - TREATED POLE (a) 1200mm x 230mm UINIUUU DIAUETER. 1800mm x 250mm UINIUUU DIAMETER ANCHOR PLATES - (a STEEL, 400mm x 400mm STEEL. 300mm x 300mm ANCHOR RODS - 46mm x 2400mm DOUBLE EYE (b 30mm x 2400mm TRIPLE EYE 2. ANCHOR HOLE SHALL BE TRENCHED AT BOTTOU TO PROVIDE SOUO ANCHORINO. (AN ANCHOR HAS IT'S UAXIUUU HOLOINO STRENGTH WHEN RESTING AGAINST SOLID UNDISTURBED EARTH AND THE TRENCHING HELPS PREVENT THE ANCHOR LOG OR PLATE FROU CREEPING UPWARD IN THE ANCHOR HOLE EXCAVATION.) 3. THE ANCHOR ROD SHALL BE TRENCHED INTO THE SIDE OF THE ANCHOR HOLE UNTIL THE ROD IS IN UNE WITH THE POINT OF ATTACHMENT OF THE GUY AT THE POLE. 4. WHEN THE ANCHOR LOG AND ANCHOR ROD ARE TRENCHED AS SHOWN ABOVE. THERE SHOULD BE NO GIVE IN THE ANCHOR AS IS USUALLY THE CASE WHEN NEITHER THE ROO OR ANCHOR IS TRENCHED. 3. THE ANCHOR HOLE SHALL BE FILLED WITH THE EXCAVATED FILL AND TAUPED WELL. ANY EXCESS SHALL BE MOUNDED ON TOP OF THE HOLE FOR SETTLEMENT. STANDARD EARTH ANCHOR DETAILS /500 mm M/N. AES) EXPANSION SHELL ROCK ANCHOR AB )BOG ANCHOR ROCK ANCHOR WITH EXTENSION ROCK ANCHOR NOTES; AB - ANCHOR IN BOO 1- HOCE SHALL BE 1300mm DEEP. 1300mm WIDE * 1500mm LONC. 2. ANCHOR LOO SHALL BE PLACED AGAINST THE BACK EDGE OF THE HOLE. 3. ANCHOR ROD SHALL BE PLACED SO THAT IT IS IN UNE WITH THE GUY ATTACHMENT AT THE POLE. 4. FILL HOLE WITH ROCK NOT LESS THAN 100mm GRADE. AR - ANCHOR IN SOLID ROCK 1. DRILL HOLE NOT GREATER THAN 43mm IN DIAMETER * EXACTLY 400mm DEEP. 2. ORILL HOLE AT M DEGREES FROM THE HORIZONTAL AND AWAY FROM THE POLE. 3. INSERT WEDOE IN ANCHOR AND INSTALL IN HOLE WITH WEDGE. 4. GROUT AROUND ANCHOR. ARE- ANCHOR IN ROCK WITH EXTENSION 1. EXCAVATE EARTH TO BARE ROCK. 2. ORILL HOLE AND INSTALL ANCHOR AS SPECIFIED IN (1) TO (2) ABOVE. 3. ATTACH ROCK ANCHOR EXTENSION ANO FILL IN EXCAVATION. AES- 1. ORILL A 32MM DIA. HOLE IN UNE WITH PROPOSED GUY TO ACCOM. THE ROCK ANCHOR. 2. DRILL HOLE TO A DEPTH SUCH THAT AFTER INSTALLATION THE BOTTOM OF THE EYE SHALL NOT BE MORE THAN 12mm ABOVE SURFACE OF ROCK. 3. PLACE A 16mm BAR THROUGH THE EYE OF THE ANCHOR AND TURN IN A CLOCKWISE DIRECTION UNTIL THE EXPANSION SHELL IS FIRMLY WEDGED AGAINST THE WALL OF THE HOLE. ^ 4. GROUT AROUND ANCHOR. STANDARD ANCHOR DETAILS 4N0LE OF ANQLE 0"- X =ROPOSED o^OPOSED , — 3UY vd : N\ TOPSOIL — maa —— — •=="•** zi • 3| —=2 £! El Of \ \ \ ' COMPACT ni •*. \ ^ EARTH | *\ COMPACT EARTH | ^^ — • SCREW ANCHOR SCREW ANCHOR WITH ROD EXTENSION KELLT BAR ADAPTER L0CK1N9 000 WRENCH EXTENSION DRIVE END WRENCH ASSEMBLY DETAIL NOTES: 1. ASSEMBLE HEUX AND ANCHOR ROD (WITHOUT EYENUT) AND THREAD THROUGH WRENCH ASSEMBLY. ENSURE THAT THE LOCKING DOGS OF WRENCH ARE COUPLETELY CLOSED ENGAGING THE ANCHOR ROD COLLAR. 2. AUON ANCHOR WITH THE PROPOSED GUY AND, USING A DOWNWARD PRESSURE WITH THE BOOU. SCREW ANCHOR TO ITS REQUIRED DEPTH TO THE RATED TORQUE OF THE DIGGER MOTOR. 3. AFTER INSTALLATION PULL LOCKING OOGS OF WRENCH ONE HALF WAY OUT TO RELEASE THE ANCHOR ROD COLLAR AND USING BOOU WITHDRAW ASSEMBLY OF WRENCH. 4. A SCREW ANCHOR UUST HAVE A UINIUUU COVER OF 1300mm OF SOIL TO ENSURE THAT IT IS BELOW THE FROST UNE. AND UUST PENETRATE THROUGH 800mm OF FIRU SOIL TO ENSURE UAXIUUU HOLDING STRENGTH. 5. IF, DUE TO POOR SOIL CONDITIONS. UAXIUUU HOLDING STRENGTH CAN NOT BE ACHIEVED WITH THE ANCHOR AND 2100mm ROD. A 1050mm ROD EXTENSION UAY BE COUPLED TO PENETRATE DEEPER INTO FIRUER SOILS. TO ACHIEVE THIS A WRENCH EXTENSION UUST BE COUPLED WITH THE KELLY BAR AND WRENCH. 8. AN ANCHOR WHICH CAN BE ROTATED AT UAXIUUU PENETRATION IS NOT IN FIRU SOIL AND SHOULD BE WITHDRAWN. AN EARTH, ROCK OR BOG ANCHOR UUST BE USED. POWER INSTALLED SCREW ANCHOR DETAILS UT I 9.1 r- !M \ i i ' ! LEVEL 1 —i 1-^. j !—-U3 t—*~- ''4 i i > :4 J I Ii t t I ]_ >*> | 3.0 «.1 9.1 12J GUY LEAD (L) m. THIS CHART IS FOR USE I DETERUININO THE GUY LEAD FOR SLOPING GROUND. NOTES: 1. RNO OUY LEAD (L) FOR LEVEL GROUND FROU CHART ON PAGE 2. ESTIMATE OR UEASURE SLOPE OF GROUND. i. DETERUINE THE HQOHT ABOVE OROUNO OF GUY WIRE ATTACHUENT. 4. PROJECT A STRAIGHT LINE FROU (H) ON THE VERTICAL AXIS THROUGH (L) ON THE HORIZONTAL AXIS AS OUTLINED IN THE CHART. 5. THE CORRECTED GUY LEAD IS DETERMINED FROU THE INTERSECTION OF THIS UNE WITH THE SLOPE IN QUESTION. txAimx (1)- i- «.i. H - i.1. unum - via POINT OF INIIMUilKM - A, C0Wm.Hl) OUT LEAD - 4.«m OCAUPLE (2)- I - •.!. H - 1.1. OOVNSLOPC - U4 POINT OP MIEMUSIMM - % bOWWJLIU> OUT LEAD - 7Am GUY LEAD it ANCHOR SETTING DEPTH ADJUSTMENT FOR SLOPE COMMUNICATION COMMUNICATION OR ./' •3/4" ROD.// 4" ROD, , f GUY LEAD STRUCTURE TYPE "*an STRUCTURE TYPE "«C"&"1E" COMMUNICAHON COMMUNICATION 1" OR 3/4" ROD, ROO STRUCTURE TYPE "3B" STRUCTURE TYPE "ZC"it"ZZ" COMMUNICATION COMMUNICATION 1" OR 3/4" ROD! 3/4" ROD: Tin STRUCTURE TYPE "3CS"&"3ES" STRUCTURE TYPE " NOTES: 1. THIS DRAWING OUTLINES THE GUYING ARRANGEMENTS AS PER THE CHART ON PAGE 19-11. 2. SEE CHART PAGE 19-M TO DETERMINE IF SECONDARY GUYING, INDICATED BY BROKEN LINES. IS REQUIRED. 3. 1" DiA.. TRIPLE EYE ROD WILL BE REQUIRED FOR ATTACHMENT OF THREE GUYS. GUYING ARRANGEMENT FOR TYPICAL STRUCTURES 19-17 19.05 Joint Use Poles 19.05.1 Pole Line Design The physical and treatment properties of Joint Use Poles shall be in accordance with the C.S.A. standards as outlined in C.S.A. 22.3, Clause 7 and C.S.A. specifications 015.3 and 080. The standard Joint Use Pole shall be a minimum of Class 4. Class 3 or higher shall be used where larger cables or conductors and/or longer spans are encountered. Wood Poles for Joint Use shall be as follows: (a) i) Southern Yellow Pine treated with Penta. ii) Jack Pine treated with Penta. iii) Red Pine treated with Penta. iv) Lodgepole Pine treated with Penta. (b) Machine peeled with physical properties in accordance with C.S.A. Specification 015.3 - 1973. (c) For Poles treated with Pentachloropheno1, or Penta, treatment shall be in accordance with C.S.A. Specification 080-M-1983, to an average retention by assay of: i) Southern Yellow Pine 4.8 kg/m3 ii) Jack Pine 7.2 kg/m3 iii) Red Pine 6.4 kg/m3 iv) Lodgepole Pine 9.6 kg/m3 (d) Jack Pine, Red Pine or LodgePole Pine Poles treated with Chromated Copper Arsenic (CCA), with or without the addition of Polyethylene Glycol (PEG), may be 19-18 used in areas where the use of Penta treated Poles is objectionable, such as near a water supply. The treatment of these Poles shall be in accordance with G.S.A. Specification 080-M- 1983, to an average net retention by assay of 9.6 kg per cubic meter. The use of wood Poles of a species or treatment process other than those listed above must have prior approval of both Parties to this Agreement. The class and maximum span length of Poles for standard power conductors and communication cables shall be determined from the charts and instructions shown on Pages 19-18 to 19-25 of this Section. The charts on Pages 19-23 to 19-25 give the standard span lengths for Pole Lines with various types of conductor and sizes of communication cables. These charts should be used when building, upgrading or reconstructing Pole Lines. They are prepared for both Class 4 and Class 3 Poles. The standard span lengths are limited by the Wind Span and the Maximum Span Length. 19-19 The Wind Span is proportional to the breaking strength of the Pole. C.S-A. states that a Class 4 and Class 3 Pole must withstand a horizontal load of 2,400 and 3,000 lbs. respectively applied two feet from the top of the Pole. The Pole should break at the ground line when a greater force than this is applied. Based on this, and with an appropriate safety factor, the wind span lengths are calculated for Pole Lines subjected to both Heavy Wind Loading and Wind and Ice Loading. The lesser result of the two was used to determine the wind span. The wind & ice loading on the Pole was taken into consideration. A safety factor of 1.3 3 with winds gusting to 153 km/h was used in calculations for Heavy Wind Loading. A safety factor of 1.66 with heavy loading (i.e. 380 N/m2 with 12.5mm of radial ice) was used for Wind and Ice Loading. The Wind Span for any structure is one half the sum of the two adjacent spans, assuming that the wind force on the conductor is shared evenly between the two supporting structures. For example, the wind span for a structure having adjacent span lengths of 73 meters and 91 meters is (73 + 91) •*• 2 = 82 meters All other things being equal the wind span will be greater for a f 19-20 Class 3 Pole than that for a Class 4 Pole. The Maximum Span Length is limited by power conductor/communication cable spacing and the strength of the hardware used to support conductors/cables. The following steps outline in detail the procedure to be followed when using the charts to determine a suitable span length: (1) Determine the type of Pole Line involved (three phase, single phase with secondary, etc.) and the conductor size to be used for same. (2) Determine the total diameter of the communication cables involved. Table Cl on Page 19-22 outlines the cable diameter to be used in the charts for various cable combinations. (3) Select the class of Pole involved. Page 19-25 indicates the maximum parameters for Class 4 and Class 3 Poles. (4) With this information, locate the appropriate curve, (A, B, C or D) and determine the span length corresponding to the cable diameter in question. (5) If all, or sections of the Pole Line are in extremely exposed areas and extra heavy loading is expected, the span length should be reduced to 80% of the chart values for these areas. For example, assume a three phase line with 477 MCM primary, 4/0 neutral and a total diameter of communication cables of 127 mm. 19-21 From Curve A on Chart 1 and Chart 2 the span length will be 3 9.6m for a Class 4 Pole and 50.3m for a Class 3 Pole; this will be the wind span length. When doing an actual layout, an individual span length can exceed this value as long as it does not exceed the maximum span length. For the above case where a value of 50.3m was obtained for the wind span, an individual span length could be 61m. However, the span lengths adjacent to this span would have to be limited to 39.6m in order not to exceed the wind span for the structure. i.e., (61 + 39.6) -r 2 = 50.3m (the wind span) For neat Pole Line construction and consistency in sag, it is recommended that the span lengths be kept, wherever possible, approximately equal. TAELE C1 COMMUNICATION CABLE DIAMETERS CABLE CONFIGURATION SUPPORTED CROSSECTIONAL COMMUNICATION CABLE DIAMETER BY STRUCTURES VIEW FOR USE IN SPAN LENGTH CHARTS ONE CABLE SUPPORTED 9Y D =• DIAMETER OF COMMUNICATION MESSENGER CABLE PLUS MESSENGER 7JY0 CASLES SUPPORTED D = DIAMETER OF 7*0 CABLES PLUS HORIZONTALLY UESSENGER AS SEEN HORIZONTALLY TWO CABLES SUPPORTED D - TOTAL DIAMETER OF TWO CABLES PLUS VERTICALLY 8 '* MESSENGER BUNDLED CABLES D «• OVERALL DIAMETER OF BUNDLED CABLES PLUS MESSENGER TWO OR UORE CABLES EACH D - TOTAL OF EACH CABLE DIAMETER SUPPORTED BY A MESSENGER PLUS THE DIAMETER OF MESSENGER O °2_ SUPPORTING SAME D - 01 + D2 + LEGEND: MESSENGER — $ CABLE Q 3 • i | (j a. - •n Ui cc 3 3 Z •u a x a. X a *~ s. o 2 a; Ui S\ J - ^ a a. r, 2 3 3 c o a o •a o o o o o o a n C4 (M (VI TOTAL DIAMETER OF COMMUNICATION CABLES (MILLIMETRES) STANDARD SPAN LENGTHS CHART-1 •J- 3 3 •a a. o XI 3 1 < < o z -» 3 o a Ui z CO z I— ir a 3_ a. TOTAL 01AMCTER" OF COMMUNICATION CABLES ( MILLIMETRES ) STANDARD SPAN LENGTHS CHART-2 a — 5 " •< — a o _ u i^ in" x •» O < o o a - 5 1 z v— a o a. a. TOTftU 3IAMCTCR OF COMMUNICATION CABLES (MILLIMCTRCSJ STANDARD SPAN LENG1 CHART- 3 19-26 19.05.02 Pole Setting Depth (P.S.D.) The recommended Pole setting depths (minimum) as shown in the P.S.D. Table below: P.S.D. Table P.S.D POLE LENGTH EARTH OR ROCK (FT) (M) (FT) (M) 30 9.15 5 1.53 35 10.67 5.5 1.68 40 12.19 6 1.83 45 13.72 6.5 1.98 50 15.24 7.0 2.13 55 16.76 7.5 2.28 60 18.29 8 2.44 65 19.81 8.5 2.59 70 21.33 9.0 2.74 The standard Pole setting details are shown on Page 19-27. Pole cribs if required are shown on Pages 19-28 and 19-29. 19.05.3 Pole Marking Pole ownership, date nail, and numbering identification tags are to be placed as illustrated on Page 19-30. NOTE 2 MOTE 2 NOTE S NOTE I NOTE I LEVEL TERRAIN SIOE HILL TERRAIN NOTES: t. POLE SHALL HAVE A FOOTING OF 230mm OF ROCK. 2. POLE SHALL HAVE A COLLAR OF 230mm OF ROCK. 3. EARTH FILL SHALL BE PLACED IN 230mm LAYERS ANB THOROUGHLY TAUPED. * 4. EXCESS FILL SHALL BE UOUNOEO AROUND POLE. r. 3. FOR HOLES HAV1N0 75* OR LESS ROCK, THE SETTM FOR EARTH SHALL BE USED. 6. HOLES DUO BY BACKHOE SHALL ALWATS BE DUO WIW THE UNE. STANDARD POLE SETTING DETAILS '600 fflfn M29mm MAX. (30 ram HAI atltt COUPLITtO CRI B HEIGHT l22Omm -NOTE : NOTE J 3 — NOTE 3 1' '1123mm MAX. TABL£ 1 f A3 T E N I H 0 POtC HQOHT cna HOCHT i ROD t.lm IDOOnvr Ifl.fcn I 1000mm turn 1200mm - 13.7m 1200mm 1300mm NOTB 4 [ 1 \ . , — \^/ P. SO. _,_ , — lltKTHl rT _ — «- 7T ~*~—< _ — •* , p 1 r I Aor i VJ/7T7// 1000 mm MAX.Uon t) -f\ 1 NOTES: 6. CRIB TIUBER SHALL BE ERECTED WITH POLE 1. CRIB TIUBER SHALL BE Of: (o) TREATED POLES OR TREATED TIUBER IN CENTER. (b) LOCAL UNTREATED - if ««CinED 7. IF SOLID FOOTINO CAN BE OBTAINED WITHIN 1000mm OF THE POLE BETT1N0 DEPTH - THEN THE 2. CORNER FASTENINO ROD SHALL IE OF: BOOSHOULD BE EXCAVATED ANO THE HOLE (a) 13mm OALV. STEEL ANCHOR ROO FILLED WITH ROCK TO-JOLE SCTTWO DEPTH. (b) ISnun UNOALVANIZED STIC ROO BEFORE POU IS ERECTED. X CORNER FASTENINO ROO SHALL HAVE A UINIUUU OF laflmm BENT TOWARO POLE AT BOTTOU * TOP t. IF SOUO FOOTINO IS MO"* THAN lOMmm OF CRIB AS INDICATED BY NOTE 3. BELOW THE POLE SETT1NO DEPTH A SPECIAL BOOSTRUOTURE SHOULD BE USED OR THE 4. ROCK FILL SHALL NOT BC LESS THAN 100mm ORAOE. POLE RELOCATED. 5. CRIB HBOHT SHALL B£ ACOROINO TO TABLE 1. SYANDARD CRIB DETAILS HELD STONE OR GRAVEL METAL CRIB SWAMP OR UNSTABLE EARTH DEPTH OF FIRM HEIGHT OF CRIB REQ'D FOR GROUND IN NORU. POLE LENOTHS (mm) FIELD STONC OR ORAVEL SETTINO (mm) 7600 1150 10700 12200 METAL 300 1200 1200 1200 1200 CRIB •00 800 1200 1200 1200 •00 600 600 1200 1200 1200 600 600 600 1200 1500 - - 600 600 SWAMP OR UNSTABLE N EARTH NOTES; 1. A UETAL POLE CRIB CONSISTS OF FOUR SEEUI-CIRCULAR CORRUGATED STEEL PIECES WHICH ARE ASSEMBLED IN THE FIELD USING BOLTS TO FORM A 2100 mm DIA. x 1200 mm HIGH CULVERT SECTION. HALF A CRIB (1«. 2 PIECES ASSEMBLED TO FORM A 2100 mm DIA. x 600 mm HIOH SECTION) MAY BE USED WHERE ADEQUATE. r 2. WHERE FIRM OROUND IS ONLY PARTIALLY AVAILABLE. A POLE SHALL BE PLACED NORMAL DEPTH OF SETTINO AND IN ADDITION SHALL BE SUPPORTED WITH A CRIB AS ABOVE. THE HEIOHT OF THE CRIB SECTION REQUIRED IS SHOWN IN THE TABLE ABOVE. A WHERE NO FIRM OROUND IS ABAILABLE WITHIN «00 mm OF THE NORMAL POLE DEPTH THE POLE SHOULD BE RELOCATED OR A SPECIAL DESIGN CRIB USED. THE SPECIAL CRIBBING MUST BE MUTUALLY ACCEPTABLE TO NEWFOUNDLAND TELEPHONE ANO THE POWER COUP, METAL POLE CRIB NOTES: 1. OWNERSHIP/DATE NAILS WILL BE INSTALLED ON ALL JOINT USE POLES AS SHOWN. 2. THE POLE OWNER WILL SUPPLY AND INSTALL HIS OWNERSHIP TAOS. 3. POLE NUMBERING BY EACH UTILITY WILL BE LOCATED AS SHOWN ON THE DIAGRAM. 4. THE DAT1NO NAIL WILL BE INSTALLED AT THE TIME OF CONSTRUCTION BY THE UTILITY ERECTINO THE POLE. PQ E E o o UNIQUE 7-DIGIT POLE NO. PLASTIC OR ALUMINUy OWNERSHIP a DATE NAIL •CD NUMBERS B LETTERS COMM. CO. NO. E o S I I I. STANDARD MARKING FOR JOINT USE POLES 19-31 19.05.4 Reuse of Wood Poles Used Poles are not to be scrapped prematurely, but should be reused if they are in good condition. Inspection procedures with respect to used Poles shall be carried out uniformly by the Parties. Defective material shall be recognized immediately upon inspection and not reused. The following criteria shall apply for inspection of used Poles: (a) Species: Only the following species shall be accepted: (i) Southern Yellow Pine (ii) Red Pine (iii) Jack Pine (iv) Lodgepole Pine (b) Treatment: Only the following treatments shall be accepted: (i) Pentachlorophenol (Penta); (ii) Chromated Copper Arsenate (CCA). 19-32 (c) Defects: The following defects, as defined below shall be used to determine whether used Poles are to be accepted or rejected. (i) Check: Separation of the wood that extends radially across the annual growth rings and are the inevitable result of the drying of the wood. (ii) Crack/Break: A cross break in the wood which is usually the result of rough handling (loading, unloading). (iii) Decay: The deterioration of wood caused by the action of wood destroying fungi, resulting in softening, loss of strength, and weight and often change of texture and colour; Advanced decay means the late stage of decay in which the decomposition is readily recognized as the wood becomes soft, stringy, pitted or crumbly. 19-33 Incipient decay means the early stage of decay in which the decomposition has not proceeded far enough to soften or otherwise change the hardness of the wood. It is usually accompanied by the slight discoloration of the bleaching of the wood. (iv) Shake: The separation of the wood along the grain, the greater part of which occurs between the annual growth rings. (v) Split(s): Usually the result of two checks meeting at the center of the Pole, resulting in two discrete portions of the Pole being completely separated. (d) Application of Defects: (i) Check: Checks that result from normal seasoning of the wood shall be permitted. A combination of two checks (which meet in the center) in the top or extending more than two feet in the butt shall be cut off to eliminate 19-34 those portions. (ii) Crack/Break: Poles with cracks shall be rejected. (iii) Decay: Advanced decay or decay in heartwood (inner, dark core) shall be rejected; however, incipient decay in sapwood (outer, lighter wood) is permitted. (iv) Shake: Shakes in the butt end surface extending through an arc of not more than 90 degrees shall be permitted. (v) Split(s): Poles with splits in the top or extending more than two feet in the butt shall be cut off to eliminate those portions. Along with the above defects, Poles that have excessive amounts of climbing holes, bird holes, insect attack, burn marks that penetrate the sapwood or pores in poor physical condition shall be rejected or cut off to eliminate the 19-35 defective portion. (e) Age Category: The following age categories shall apply in order to determine the appropriate use for used Poles: (i) 10 years or less - to be reused as per class and height; (ii) Over 10 years - less than 25 years To be reused as 30 foot service Poles and street light Poles only. (iii) .25 years and over - to be rejected. (f) Retreatment All Poles in Age Category (ii) shall be retreated in the following manner: (i) Butt: Butt ends that are cut off shall be retreated. All Poles shall have a groundline bandage applied when Pole is placed. 19-36 (ii) Top: All Poles that are cut off at the top shall have the top retreated, (g) Holes All unused bolt holes are to be plugged after framing using treated plugs. 19.06 Grounding and Bonding Grounding coils shall be placed in accordance with the installation details shown on Page 19-38, on all Joint Use Poles supporting equipment such as distribution transformers and guys. Additional ground coils shall be installed if these grounds do not satisfy the requirement of one ground per 300 meters. Where ground is required on an existing structure, ground rods shall be installed as per the installation details on Page 19-39. The bonding and grounding of communication cables to the structure ground shall be at the beginning and the end and at approximately 300 meter intervals along the Joint Use structure. The connection of the communication ground wire and the power ground wire, to the structure ground is shown on Page 19-40. Communication guys that are not effectively grounded 19-37 through the strand bolt shall be bonded to the strand as shown on Page 19-41. 23 mi VERTICAL SECTION BUTT SECTION aWOUND COIL DETAILS NOTES: 1. A OROUND COIL IS TO BE USED FOR GROUNDING OUYS. TRANSFORMERS .AND OTHER APPARATUS ON WOODEN POLES. 2. THE GROUND COIL WILL HAVE TO BE HADE UP AND CLAMPED PRIOR TO MCTALUNO THE POLE. 3. THE COIL IS CONSTRUCTED BY WRAPPING A SINGLE TURN OF NO. 4 BARE. SOLID COPPER WIRE AROUND THE OUTER EDGE OF THE POLE BUTT. 4. THE WIRE USED FOR THE OROUND COIL SHOULD BE OF SUFFICIENT LENOTH TO EXTEND TO THE TOP OF POLE. S. THE GROUND WIRE SHALL BE COVEREED WITH A PLASTIC GROUND WIRE OUARO. THE GUARD SHALL EXTEND ISO mm BELOW FINAL GRADE ANO BE CLAMPED AT 810 MTERVALS. « •. A GROUND COIL IS NOT RECOMMENDED WHERE THE POLE IS RESTINO ON A ROCK FOUNDATION. 7. POLES PLACED BY TELEPHONE COMPANY SHALL CONTAIN SUFFICIENT WIRE COILED UP WITHIN THE COMMUNICATION SPACE TO EXTEND TO THE TOP OF POLE. STANDARD GROUND COIL INSTALLATION DETAILS O e x o mu POLE 2400 mm 2400mm INSTALLATION DETAILS FOR IMPROVED GROUND RESISTANCE A GROUND ROD IS TO BE USED WHERE IT IS IMPRACTICAL TO INSTALL A 0ROUN0 COIL. 2. 0ROUN0 RODS SHALL BE INSTALLED IN UNDISTURBED EARTH (AT LEAST 450 mm FROM WOOO POLES) TO ENSURE THE BEST POSSIBLE CONTACT WITH THE SOIL. Z. THE OROUNO ROD SHALL BE DRIVEN VERTICALLY. IF THIS IS NOT POSSIBLE THE THE GROUND ROD MAY BE DRIVEN AT AN ANGLE NOT LESS THAN 45 DEGREES TO THE HORIZONTAL AND TO ITS FULL DEPTH. 4. FOR PROTECTION THE OROUNO ROD AMD GROUND WIRE SHALL BE BURIED AT LEAST 180 mm BELOW FINAL ORAOE. 5. THE GROUND WIRE SHALL BE COVERED WITH A PLASTIC GROUND WIRE GUARD. THE GUARD SHALL EXTEND 150 mm BELOW FINAL GRADE * BE CLAMPED AT 110 mm MTERVALS. I. TO IMPROVE OROUND RESISTANCE AT A PARTICULAR LOCATION. TWO OR THREE OROUNO RODS MAY BE ADDED TO THE COSTING ELECTRODE AS INDICATED. 7. THE ADDITIONAL RODS SHOULD BE SPREAD MOT LESS THAN 2400 mm APART AND INSOFAR AS POSSIBLE BE INSTALLED ALONG THE ROUTE OF THE POLE LINE. \ STANDARD GROUND ROD INSTALLATION DETAILS 90N0IN0 STKAND TO VERTICAL GROUND 30N01NQ STBANO TO MULT) SHOULD NEUTRAL 2.0 m SLACK COIL NO. 6 SRO. WIRE ! TOP OF COMM. SPACE CLAMP CLAMP - STRANO COMM. CABLE - COMM. CABLE POWER CO. VERT. SRO. POLE POLK NEWFOUNDLAND TELEPHONE CONNECTION POWER CO. CONNECTION CONNECTION - 9K0UN0 WIRE TO CONNECTION-OROUNO WIRE TO NEUTRAL-"B" STRUCTURE NEUTRAL-MC" » ME" STRUCTURES GROUND WIRE CONNECTION JOINT USE POLES SEE NOTE I — COMMUNICATION STRAND COMMUNICATION QUY COMMUNICATION STRAND COMM. GUY NO. 6 GROUND WIRE (COPPER) GROUND WIRE TO COIL NOTE I' TOP OUr IS EFFECTIVELY GROUNDED THROUGH BOLT. COMMUNICATION GUY BONDING ( 19-42 19.07 Easement Widths and Pole Lines The standard Joint Use easement widths shall be as follows: Span Lengths less than or equal to 61 Meters (1) Two and three phase primary conductor and communication cables - 7.4 meters (2) Single phase primary conductor and communication cables - 5.4 meters ( (3) Secondary conductor and communication cables - 3.0 meters (minimum) (4) Guy wire and Anchors - 3.0 meters wide x 8 meters (minimum) to 10 meters (maximum) long Span Lengths more than 61 Meters (1) Single phase and three phase primary conductors and communication cables - 9 meters (2) Guy wires - 3.0 meters wide x 10 meters long The Joint Use Pole Line shall be located in the centre of 19-43 the easement. The standard Joint Use easement widths for Underground Construction shall be as follows: (1) Direct buried construction - 3.0 meters (2) Ducts and duct banks - as required 19.08 Line Clearing and Tree Trimming For new construction of Joint Use Pole Lines supporting primary conductors, the right-of-way shall be cleared to a maximum width of 7.4 meters, including all overhanging branches. The cleared section should be increased in locations where high trees or upslope is encountered. For secondary and service Pole Lines, a cleared width of three meters should be adequate providing the area is well sheltered and there is reasonable assurance that trees will not fall into the Pole Line. To provide adequate working conditions, all brush and stumps are to be cut within 150 mm of existing grade. All cuttings, trees, deadfall, bark and debris shall be burned or otherwise removed from the right- of-way. This burning must be conducted a sufficient distance from the Pole Lines to avoid heat damage to telephone cables and power lines. When a tree is located near energized power lines, a rope shall be used to anchor the tree to ensure that once cut it does not fall across 19-44 these lines. Once cleared, the Owner may cut, use spray or pellets, subject to environmental regulation, or other acceptable method to control the growth of underbrush. Most properly maintained rights-of-way will require no tree trimming. However in areas where trees are maintained for aesthetic reasons, trimming is essential. Trimming, in general, should be carried out when branches reach a 2 meter radius for fast growing trees and 1 meter radius for slow growing trees when adjacent to primary conductor and/or 1 meter radius for fast growing trees and 0.5 meter radius for slow growing trees when adjacent to secondary power lines and communication cable. All deadwood which could blow into the line or trees which are leaning or appear to have inadequate support shall be removed during the trimming process. Special consideration shall be given to trees near school yards and playground areas to eliminate the possibility of climbing by children near energized conductors and/or cables. 19.09 Joint Use Buried Construction The installation of underground power cables and communication cables in a Joint Use trench shall be in accordance with the drawings on Page 19-46. Both power and communication cables shall be laid during sand installation 19-45 at a planned separation of 300 mm minimum. Random separation in a common trench is prohibited because of accessibility and supply cable design restrictions, as outlined in C.S.A. Standard 22.3 No. 1, Clause 9. Mechanical protection shall be used to cover direct buried primary power cables for the full length of the cable run. A warning strip shall be used near the top of the Joint Use trench. No trenching shall be carried out under frost or winter conditions. The trench shall be excavated such that the minimum depths, as indicated on Page 19-46, are not decreased in any part of the trench. Where trenching is done by machine, all rock and loose fill shall be removed from the trench bottom with hand tools prior to sand installation. The trench shall be backfilled with selected backfill and tamped in 300 mm layers, except in the case of road crossings where the backfill shall be of the same material as the roadbed and tamped in 150 mm layers. 5 OOmm i FINAL GRADE FINAL GRADE TAPE WARNING TAPE 38 I ISO PLANK WASHED SANO ^— i#- COARSE SAND PRIMARY DUCT SECONDARY CABLE SECONDARY DUCT TELEPHONE CABLE TELEPHONE DUCT PRIMARY CABLE 78 DIRECT BURIED CABLE DIRECT BURIED DUCT 1 300 .1 FINAL ORADE WARNING TAPE " • SECONDARY CABLE DIRECT BURIEO // I OR DUCT TELEPHONE CABLE DIRECT BURIEO PRIMARY OUCT 7 I OR DUCT TELEPHONE DUCT SAND SPARE DUCT 78 CONCRETE SERVICE a TELEPHONE OR CONCRETE ENCASED OUCT STREET U9HT TRENCH DETAILS TYPICAL 0H1CNSI0NS ARC SHOWN rOt TRtMOM WIDTH AHO OfPTH. THUt WILL CHANM ACCOROW* TO THE MltlKK Of CJRCUTT1 RCQUIRCO. CXOAVATm« COUVMKNT AMD nCLD CONDITIONS NOTUi 1. rHE. TRENCH SHALL BE AS STRAIGHT AS rOSSIILE WITH THE BOTTOM CLEAN AND FREE OF ANY PROJECTMS STONES , RIOSES OR SHAW CHAN8ES IN 0RAOE WHICH COULD CAUSE A PRESSURE POINT ON THE CABLE. 2. THE CABLE OR DUCT SHALL BE INSTALLED IN A BEOOINB Of SAND AT LEAST lBOmm AROUND CABLE. 1. ALL TRENCHES SHALL BE BACKFILLED WITH SELECTED BACKFILI. AND TAUPED IN 200mm LAYERS. EXCEPT AT ROADCROSSINSS WHERE THE BACKFia SHALL BE THE SAME MATERIAL AS THE ROADBED AND TAMPED IN ISOIM LAYERS. EXCESS FILL SHALL BE PLACCD ON TOP TO ALLOW SETTUN8. A. MECHANICAL PROTECTION SHALL BE INSTALLED OVER THE PRIMARY CABLE AS SHOWN PRIOR TO FILUNO THE TRENCH WITH SUITABLE BACKFILL. S. THE MAXIMUM SIZE ROCK PERMITTED IN THE SELECTED BACKFia MUST BE LESS THAN 70mm IN PIA. I. CONCRETE TO HAVE A 28 OAY SPECIFIED STRENBTH Of 10mP« WITH MAXIMUM AMREBATE SIZE OF 20mm ANO MAXIMUM SLUMP OT 7Sfnm. 7. CONCRETE ENCASED DUCTS SHALL BE SUPPORTED BY APPROVED SPACERS PLACED AT 1200mm INTERVALS. NO WIRES OR METAL TIES ARC TO BE USED. S. INSTALL MINIMUM Of NO. 12 FISH WIRE AND SECURELY CAP BOTH ENDS OF DUCTS. I. ALL FrrnNBS. COUPUNSS. ETC. TO BE SOLVENT WELD. It. SPARE OUCTS SHALL BE INSTALLED AS REQUIRED. II. ELECTRICAL OUCT SHALL BE PVC TYPE DB-2 OR APPROVED f^UIVALENT. 12. BONO COMMUNICATIONS CABLE SHEATH TO BROUNO WIRE OR OROUNO SWO AT THE BE0INNIN8, THE END ANO AT ALL TRANSFORMER LOCATIONS (ACCESS IS NOT PERMITTED INTO TRANSFORMER) UNDERGROUND TRENCH DETAILS 19-47 19.10 Vertical Runs on Poles Vertical runs of neutral conductors and ground wires shall be protected from the ground up 2400mm with suitable material of adequate electrical insulating and mechanical properties. Where the vertical run consists of a power cable, the protection may consist of metal guard, or conduit, without insulating properties. Supply and communication vertical runs should not be made on the same Poles. Where it is not practical to place them on separate Poles they shall at least be 90° apart. A typical riser arrangement is shown on Page 19-48. COMMUNICATION CABLE COMMUNICATION O| SPACE 5! U 8UAH0 OR CONDUIT -CONOUIT •o* COMM. CABLE yj POWER CABLE 1. CONCRETE ABUTMENT MAY BE REQUIRED AROUND DUCTS OR OUARDS IF EXPOSED TO VEHICULAR TRAFFIC 2. SUPPLY SPACE AT DEADEND DIP POLE MUST BE AT 10 DEO. TO DOWN QUY TO ALLOW FOR COMMUNICATION OUY ATTACHMENT. POLE RISER DETAIL 19-49 19.11 Standard Symbols The following exhibits show the most common symbols used by Newfoundland Telephone and the Power Company. EXHIBIT A - Newfoundland Telephone Symbols EXHIBIT B - Power Company Symbols 19-50 COMMUKICATION COMPANY STANDARD SYMBOLS NEW EXISTING • o WOOD POLE - NON-JOINT USE - INDICATE HEIGHT & Cl 0 0 WOOD POLE - JOINT USE - INDICATE HEIGHT & Cl X X POWER CO. OWNED POLE F F FOREIGN OWNED POLE - (OTHER THAN POWER CO.) COMMUNICATION CO. GUY & ANC. INDICAT1 COMMUNICATION CO. SIDEWALK GUY & ANC. LEAD COMMUNICATION CO. GUY ON POWER ANCHOR ANC & Gl SIZE COMMUNICATION CO. POLE TO POLE TO POLE GUY COMMUNICATION CO. PUSH BRACE - INDICATE HEIGHT & I PS NOTES: 1) STANDARD SYMBOLS USED ON WORK PLANS. 2) SYMBOLS WHICH ARE SHADED OR HEAVY INDICATE A NEW ITE1 3) GUYS REFER TO COMMUNICATION CO. GUY ONLY. HOWEfl ANCHORS SHALL BE SIZED TO ACCOMMODATE POWER CO. GUI REQUIREMENTS. STANDARD ROD TYPES ARE: a) 3/4" X 9' DOUBLE EYE b) 1H X 9' TRIPLE EYE EXHIBIT A •i \,&;P AOCD -rOLE i '"-' .NDERGSOtiND ii PRIMARY CABLE -.raicati i.zt.'. ;.ftaic««f Pole' HetqnilFt ! a .',000 POLE ! .Other Tha* .- irfSsfc- JNOERGRCUND • i PRIMARY CABLE : S Voltoae '*v' ". '-f-E*.' O 25'-3 NT PRIMARY -ERIAL C-BLE ~* " ~ CONCRETE =C5LE'Hnaieate role naiqntirt) UNDERGROUND DUPLEX CABLE X-LPE/PvCfUnaicote i iiNGte'COWN JUY'1 ^asfeiiSSfc- ONDERGRGUNO ~=IPLEX CABLE XLPE.'»VCji f.^T.V. - -, -,, e:~ ""-<».•/»! - ,%r r'nOJeate C-uy TyoS. -nencr di. •JNOERGRCUND J WIRE 3SCCN0ARY XLPE/PVCjUn0 „. , •,--\i.. .. j 3 Minimum i_aaa iFt ; ^2g^^^^;' JNOERGRCUND - WIRE :£CCNDARY XLPE/PVC.i ilJli SXEWALK 3UY _ i CUSTOMER CWNED =LANT :v£RHEAO 12 PRIMARY CONDUCTOR • 3 TRANSFORMER ICC/240 VCLT "i-indicate kVA j-inaicote .- •;-•.-• . ' '. • •'•• H i«' ' ~~n •- CVERHEAO 2 2 PRIMARRY COf i a T,pe CPEN CELTA/WYE "^ANSFORMER BANK "-indicate «'.A 6 12 TRANSFORMER 3ANK Seconoarv >ci ; £ PRIMARY CGNDuCTORJ * CVERHEAO 2 S6C0M0ARY"I- matcat* Size 33 PAOMOUNT TRANSFORMER • "' '«-:2C/: CVERHEAO 4 *(IRE £ECC'NOA#Y ; ° Typa £ PADMOUNT 'SANSrCRMER ilnaicatt «vA •=.-:.•-:-• -•-;'.'• • - - E» 2/OAASC *6 ASC -RIMARY METERING TANK OVERHEAD T i5C CAPACiTCR •- -natcote «var ,GLTAG£ -^E3ULAT0P "'naicate Amo& 'j- .r.aicate " THE LETTER "E" CR SHADED SYMfiOLS 2EN0fE EXISTING PLANT LUMINAIRE DES'GNATION CU COPPER 5 HIGH PRESSURE SODIUM ASC ALUMINUM STRANDED CCNULiCTOR M MERCURY VAPOUR AASC ALUMINUM ALLOY STRANOEO CONDUCTOR 14 STANOARD LUMINAIRE j4' BRACKET ACSR ALUMINUM CONDUCTOR STEEL REINFORCED 6 STANOARD LUMINAIRE 6 BRACKET "ILC ^ft*>ER INSULATED LEAD COVERED 2 STANOARO LUMINAIRE 2' BRACKET M-PE/CN CROSSLINK POLYETHYLENE INSUL&TED CONCENTRIC P POST TOP L'JMINAIRE MEUTR^L UP wEAVHESPRdoF CONDUCTOR LPE/PVCJ CROSSLINK POLYETHYLENE INSULATED , PCLYVINYL CHLORIOE ^ACKET i TWS DJ54.WING JNglCATES THE STANDft»O LEGEND TO BE USED ON ALL PROJECT PLANS Z .NFOR^SJIQ^ NORMA1.U ~ 8f STAND ARC .^ i8 f EYS FOB UP TO 2 S&KSLf GUYS {&) l'«a' TRIPL£_ EYE POR UP TO 3 StNStE GUYS 5 THE\QtSIGf*ATION TO fl£ US€D ASjaC£l4t TO THE SYMBOL FOR CONDUCTOR AMD LUW^AlRE ARE INOICATED A3Ov£ ^ A»<0 lNSUt-ftt_iC*l.JJEVgL SHftU- 85* • NCICATEC C-N EACH PLAN Administrative Practices Section 14 Exhibit A Sheet 1 of 9 APPROVAL OF RENTALS Joint use rentals for the period January 1,1999 to December 31,1999 as calculated in the Administrative Practices Section 14 Exhibit A Sheets 2 to 9 inclusive and dated 1999 07 29 are here by approved. NEWTEL COMMUNICATIONS INC. NEWFOUNDLAND POWER INC. DATE: DATE: Administrative Practices Section 14 Exhibit A Sheet 2 of 9 STATEMENT OF RENTALS FOR JANUARY 1.1999 TO DECEMBER 31.1999 The Number of Joint Use Poles at December 31,1998 as Recorded in the Computerized Joint Use File Implemented by Both Parties: Joint Use Poles Telephone Power Owned Owned Total 65,773 109,731 175,504 Telephone Company Rentals for Power Company Poles 109,731 Joint Use Poles @ $ 39.63 $4,348,640 Power Company Rentals for Telephone Company Poles 65,773 Joint Use Poles @ $ 65.54 $4,310,762 Net Annual Rental $ 37,877 Net Monthly Billing to the Telephone Company for Period of January 1, 1999 to December 31, 1999 1/12 of $ 37,877 $ 3,156 Administrative Practices Section 14 Exhibit A Sheet 3 of 9 CALCULATION OF JOINT USE RENTAL RATES EFFECTIVE JANUARY 1.1998 TO DECEMBER 31.1998 NP Embedded Cost NewTel Embedded Cost at December 31, at December 31, 1998 1998 Bare Poles $ 90,374,828 Anchors 4f t 20,298,187 Right-of-way $ 656,149 Grounding $ 2,078,621 Total Plant 4f t 66,676,576 %for71C 4f t - Less Guy Cost 7.00% 4f t 4,667,360 Total 4f t 113,407,785 $ 62,009,216 Number of Poles in Service 177,033 90,450 Embedded Cost per Pole 4f t 640.60 $ 685.56 ACCR 15.47% 17.15% JUR 60.00% 40.00% Maximum Variance 5.00% Annual Rental Rate with JUR of 40% NewTel - 60% NP NewTel Rental Rate on NP Pole $ 640.60 15.47% 40.00% $ 39.63 NP Rental Rate on NewTel Pole $ 672.63 16.24% 60.00% $ 65.54 Note: The NewTel Embedded Cost of $685.56 is limited to $672.63 because of the 5% Cap. Note: The NewTel ACCR of 17.15% is limited to 16.24% because of the 5% Cap. Administrative Practices Section 14 Exhibit A Sheet 4 of 9 ANNUAL CARRYING CHARGE RATES 1998 Power Company Telephone Company Annual Fixed Charge Rate 12.77% 15.39% Maintenance 2.70% 1.76% 15.47% 17.15% Administrative Practices Section 14 Exhibit A Sheet 5 of 9 NEWTEL COMMUNICATIONS INC. CALCULATION OF LEVELUZED RATE OF RETURN AND INCOME TAX 1998 Cost of Money Debt 47.58% @ 9.35% = 4.45% Preferred 0.00% @ 0.00% = 0.00% Common Equity 52.42% @ 12.00% = 6.29% Weighted Average Cost of Capital = 10.74% Capital Recovery Factor 10.74% for 27.0 Years = 11.47% Less Depreciation Straight Line For 27.0 Years Life = 3.70% 7.77% Less Deferred Tax 43.12% * { 2.94% - 3.70%) = -0.33% Rate of Return * = 8.10% Levellized Bond interest 4.45% 8.10% = 3.36% 10.74% Levellized Capital Cost 11.47% 3.70% = 2.94% 10.74% + 3.70% Income Tax Capital Recovery Factor =11.47% Less Levellized Capital Cost = 2.94% 8.53% Less Levellized Bond Interest = 3.36% 5.17% Income Tax @ 43.12% 5.17% - 5.17% = 3.92% 1 - 43.12% Calculation of Average Annual Fixed Charge Rate Rate of Return - = 8.10% Straight Line Depreciation = 3.70% Income Tax = 3.92% Deferred Tax = -0.33% Annual Fixed Charge Rate = 15.39% Administrative Practices Section 14 Exhibit A Sheet 6 of 9 NEWFOUNDLAND POWER INC. CALCULATION OF LEVELLIZED RATE OF RETURN AND INCOME TAX 1998 Cost of Money Debt 54.23% 9.07% 4.92% Preferred 1.90% 6.43% 0.12% Common Equity 43.87% 9.25% 4.06% Weighted Average Cost of Capital 9.10% Unit Summation. Depreciation and Normalized Tax Accounting Capital Recovery Factor 9.10% for 27.6 Years 10.00% Less Depreciation Straight Line for 27.6 Years Life 3.62% 6.38% Less Deferred Tax 45.20% * ( 3.05% 3.62% ) = -0.26% Rate of Return 6.64% Levellized Bond Interest 4.92% 6.64% 3.59% 9.10% Levellized Capital Cost 10.00% * 4.00% 3.05% 9.10% 4.00% Income Tax Capital Recovery Factor 10.00% Less Levellized Capital Cost 3.05% 6.95% Less Levellized Bond Interest 3.59% 3.36% Income Tax @ 45.20% 3.36% 3.36% 2.77% 1 - 45.20% Administrative Practices Section 14 Exhibit A Sheet 7 of 9 NEWFOUNDLAND POWER INC. CALCULATION OF ANNUAL CARRYING CHARGE RATE 1998 Rate of Return 6.64% Straight Line Depreciation 3.62% Income Tax 2.77% Deferred Tax -0.26% Annual Fixed Charge Rate 12.77% Maintenance 2.70% Total Carrying Charge Rate 15.47% Administrative Practices Section 14 Exhibit A Sheet 8 of 9 NEWTEL COMMUNICATIONS INC. CALCULATION OF TREATED POLE AND ANCHOR COST 1998 Pole and Anchor Maintenance Maintenance Cost $ 339,849 Pole & Anchor Plant in Service (Average 1998 ) $59,135,186 Maintenance Factor 339,849 100 0.57% 59,135,186 Overhead Outside Plant (Planning and Engineering) $ 80,114 Billing Records, etc. $ 73,943 Executive and Administration $ 246,634 Other (General Services, Licenses, etc.) $ 300,831 $ 701,522 Pole & Anchor in Service (Average 1998 ) $59,135,186 Overhead Factor 701,522 * 100 1.19% 59,135,186 Treated Pole & Anchor Maintenance 0.57% 1.19% 1.76% Administrative Practices Section 14 Exhibit A Sheet 9 of 9 c • NEWFOUNDLAND POWER INC. CALCULATION OF TREATED POLE & ANCHOR OPERATING COST 1998 Maintenance Cost - Poles Conductors & Fittings $ 6,972,438 * 20.00% $ 1,394,488 Operating Supervision $ 281,580 General Expenses Customer Services Supervision, Statistics & Forecasts $ 5,000 Accounting Supervision, Plant, Billing, Auditing, $ 1,268,028 Taxes & Assessments General Supervision & Administration, Legal, $ 131,298 General Operations, Public Liability Insurance & Safety Total $ 3,080,393 Average Cost of Treated Pole and Anchor in Plant 1998 V- $113,948,515 + $114,414,943 = $114,181,729 Treated Pole and Anchor Operating Cost as a Percent of Pole and Anchor Cost $ 3,080,393 * 100% = 2.70% $114,181,729 NEWFOUNDLAND TELEPHONE COMPANY LIMITED AND NEWFOUNDLAND LIGHT & POWER COMPANY LIMITED POLE OWNERSHIP AGREEMENT EFFECTIVE JANUARY 1, 1994 Newfoundland Telephone POLE OWNERSHIP AGREEMENT CONTENTS ARTICLE TITLE PAGE I DEFINITION OF TERMS 3 II JOINT USE POLE INSTALLATION 7 III OWNERSHIP AND SALE OF POLE UNITS 9 IV SELLING PRICE OF POLE UNITS 14 V CONDITIONS OF SALE 15 VI INVOICES AND PAYMENTS 18 VII LIABILITIES AND DAMAGES 19 VIII DEFAULTS 20 IX IMPOSSIBILITY OF PERFORMANCE 21 X ASSIGNMENT OF RIGHTS 23 XI NOTICES 24 XII WAIVER OF TERMS OR CONDITIONS 27 XIII PAYMENT OF TAXES 28 XIV ARBITRATION 29 XV TERRITORIES COVERED BY THIS AGREEMENT 30 XVI TERM OF AGREEMENT 31 XVII REGULATORY IMPACT 32 XVIII MISCELLANEOUS PROVISIONS 33 THIS AGREEMENT made at St. John's, in the Province of Newfoundland as of the 1st day of January. 1994. BETWEEN: NEWFOUNDLAND TELEPHONE COMPANY LIMITED. a body duly incorporated under the laws of the Province of Newfoundland, having its registered office at the City of St. John's, in the Province of Newfoundland, hereinafter called "Newfoundland Telephone", AND; NEWFOUNDLAND LIGHT & POWER CO. LIMITED, a body duly incorporated under the laws of the Province of Newfoundland, having its registered office at the City of St. John's, in the Province of Newfoundland, hereinafter called the "Power Company", WHEREAS the Parties have entered into a Joint Use Agreement dated as of the 1st day of January, 1994 ("the "Joint Use Agreement"); AND WHEREAS the Parties have agreed to various ownership ratios for Poles being jointly used by the Parties and to certain provisions regarding the transfer of Poles from the Power Company to Newfoundland Telephone when required to achieve the appropriate levels of Pole ownership; -2- NOW, THEREFORE, THIS AGREEMENT WITNESSETH THAT in consideration of the premises and of the mutual covenants herein contained, the Parties hereby covenant and agree each with the other as follows: -3- ARTICLE I DEFINITION OF TERMS 1.01 The following definitions shall apply in this Agreement unless the context clearly requires otherwise: ANCHOR means all the physical components, excluding guys, used for anchoring a Pole. ANNUAL OWNERSHIP means the percentage of the total Joint Use Poles PERCENTAGE which is the annual ownership objective for Newfoundland Telephone as set out in this Agreement. BOARD means the Board of Commissioners of Public Utilities of Newfoundland. CRTC means the Canadian Radio-television and Telecommunications Commission. FACILITIES means Poles, Anchors, Grounding Systems, Pole Cribs, Buried Construction and related rights-of-way. GOVERNING BODY means any body having legislative or regulatory powers affecting the parties and includes the Board, the CRTC, and Federal, Provincial, Municipal or other authority having jurisdiction over highways or other public places, acting under legislative authority to carry out duties in maintaining and improving public highways or other public places. GROUNDING SYSTEM means the ground rod or ground coil, wire and all physical components required to connect the neutral conductor to earth. JOINT OWNERSHIP means the ratio of the percentage of total Joint RATIO Use Poles owned by the Power Company to the percentage of total Joint Use Poles owned by Newfoundland Telephone. JOINT USE means the use by both Parties and, in relation to Facilities, means Facilities used by both Parties, in accordance with the terms of the Joint Use Agreement. JOINT USE means the agreement entered into by the Parties to AGREEMENT govern the Joint Use of Facilities bearing the date of this Agreement. JOINT USE means the liaison committee established and COMMITTEE maintained under the Joint Use Agreement. JOINT USE RATIO means the ratio agreed by the Parties as provided -5- in ARTICLE VIII of the Joint Use Agreement. JOINT USE REQUEST means the form provided in SECTION 16 - FORMS of the Joint Use Agreement. NET BOOK VALUE means the original investment as carried on the books of the Owner less accumulated depreciated expense for that investment. OTHERS means persons, firms or corporations who are not a Party. OWNER means the Party who owns or controls the Facility. PARTY means a party to this Agreement. PERMIT means the instrument in writing by which the Owner authorizes Joint Use of a Facility. POLE means a utility pole owned by a Party and used to distribute electrical power or telecommunications signals. POLE LINE means two or more Poles installed in a sequence to service a particular area. POLE UNIT means a Facility other than Buried Construction, and includes the plural "Pole Units", as context or circumstances require. -6- TENANT -means the Party making, applying for or having the permission to make Joint Use of a Pole belonging to the other Party. -7- ( — ARTICLE II JOINT USE POLE INSTALLATION 2.01 In each calendar year, the Power Company will afford Newfoundland Telephone opportunities to install Joint Use Pole Units, or Pole •Units projected for Joint Use. The Power Company shall notify Newfoundland Telephone of such opportunities. The notification shall include a description of the specifications of the Power Company including the time frame for installation. 2.02 Upon receipt of notification under Clause 2.01 Newfoundland Telephone shall elect whether to install the Pole Unit. If V Newfoundland Telephone is unwilling or unable to install the Pole Unit as specified by the Power Company, it shall so notify the Power Company. The notification shall include a reason for not installing the Pole Unit. Newfoundland Telephone shall not be restricted from putting forward at any time prior to arbitration, and relying upon during arbitration, additional reasons for not installing the Pole Unit. 2.03 A notification under Clause 2.01 or Clause 2.02 shall be in writing, but may be verbal if subsequently confirmed in writing, provided always that the written notification is deemed to prevail over verbal notification in the case of a conflict. 2.04 Newfoundland Telephone will be expected to take advantage of all reasonable opportunities to install Joint Use Pole Units. -8- 2.05 Pole placement opportunities in government rural lines shall be treated the same as any other area. 2.06 Newfoundland Telephone may be offered replacement Poles for upgrading affected by contribution in aid of construction. -9- c ARTICLE III OWNERSHIP AND SALE OF POLE UNITS 3.01 (a) There shall be a determination of the number of Joint Use Poles owned by each Party as of December 31 of each year that this Agreement is in force. (b) The Parties agree that as of December 31, 1993 the current best estimate of the Ownership of Joint Use Poles is: , Poles owned by Power Company 118,482 Poles owned by Newfoundland Telephone 44,972 Total Joint Use Poles 163,454 From these numbers the Joint Ownership Ratio as of December 31st, 1993 was 72.49 % Power Company, 27.51 % Newfoundland Telephone. At any time, this estimate of the Ownership of Joint Use Poles may be adjusted to reflect any better estimate to which both Parties may agree. (c) Subject to, and in accordance with, the terms of this Agreement, the Parties agree that: (i) As of December 31, 1994, the Annual Ownership Percentage for Newfoundland Telephone shall be the percentage of the total Joint Use Poles that it -10- owned as of December 31, 1993, plus 2%. (ii) The Annual Ownership Percentage for Newfoundland Telephone for each year end after 1994, for which this Agreement is in force, shall be the percentage of the total Joint Use Poles that Newfoundland Telephone owned as of December 31 of the previous year, after any sale under the Collateral Agreement, plus 2% until the Joint Ownership Ratio equals the Joint Use Ratio. At that time, the Annual Joint Ownership Ratio shall be maintained equal to the Joint Use Ratio until changed by agreement of the Parties. 3.02 Where the annual determination of Joint Use Poles owned by each Party shows that the Annual Ownership Percentage has been achieved or surpassed by Newfoundland Telephone, then the Power Company shall not be required to sell any Pole Units to Newfoundland Telephone for that year. 3.03 Where, as of December 31 of each year, Newfoundland Telephone has not achieved the Annual Ownership Percentage, then subject to Clauses 3.04 and 3.05 below, the Power Company shall sell to Newfoundland Telephone the number of Joint Use Pole Units necessary for Newfoundland Telephone to equal the Annual Ownership Percentage. -11- 3.04 Where the annual determination of Joint Use Poles owned by each Party shows that Newfoundland Telephone has not achieved the Annual Ownership Percentage, and Newfoundland Telephone agrees in writing that it failed to take advantage of a "reasonable opportunity" to place Pole Units, then the number of Pole Units involved shall be deducted from the number of Pole Units to be sold under Clause 3.03. However, if the Power Company alleges that Newfoundland Telephone has failed to take advantage of a reasonable opportunity to place Pole Units but Newfoundland Telephone does not agree with the allegation, then the matter shall be referred to arbitration and Clause 3.05 shall apply. 3.05 (a) Any matter referred to arbitration under Clause 3.04 above shall require the arbitrator to decide if Newfoundland Telephone failed to take advantage of a "reasonable opportunity" to install a Pole Unit. Each Pole Unit must be either a Joint Use Pole Unit, or a Pole Unit projected for Joint Use. If the arbitrator finds that Newfoundland Telephone did fail to take advantage of a "reasonable opportunity", then it must next decide if Newfoundland Telephone raised a "Bona Fide Dispute" by its objection to installation. A "Bona Fide Dispute" is a dispute which is not frivolous and which raises a new question as to what constitutes a "reasonable opportunity" to place a Pole Unit. (b) Where the arbitrator finds that Newfoundland Telephone was not presented with a "reasonable opportunity", then the number of Pole Units to be sold under Clause 3.03 will not be affected. -12- (c) Where the arbitrator finds that Newfoundland Telephone was presented with a "reasonable opportunity" but raised a "Bona Fide Dispute", then the number of Pole Units affected will be deducted from the number of Pole Units to be sold that year but the Annual Ownership Percentage for the following year shall be increased by the number of Pole Units so deducted. (d) Where the arbitrator finds that Newfoundland Telephone was presented with a "reasonable opportunity" and that Newfoundland Telephone failed to raise a "Bona Fide Dispute", then the number of Pole Units affected will be deducted from the number of Pole Units to be sold that year. 3.06 The effective date of the sale of Pole Units under this Agreement shall be deemed to be no later than December 31 of the effective year of the determination of Pole Ownership referred to in Clause 3.01." 3.07 In determining which Pole Unit shall be sold to Newfoundland Telephone, due regard shall be had to: (i) the overall efficiencies and economies for the Parties; (ii) the objective that the Joint Use Poles of each Party shall be made more representative of the total Joint Use Pole population including age, size, condition, location (urban or rural). -13- 3.08 The impact on customers of the Power Company resulting from installation and maintenance of Pole Units by Newfoundland Telephone, or transfer of Pole Units to Newfoundland Telephone, is to be no more adverse than if the Power Company had installed and maintained the Pole Units. 3.09 From time to time and at any time as the Parties may mutually consent, the Power Company may sell to Newfoundland Telephone and Newfoundland Telephone may purchase from the Power Company any Joint Use Pole Unit. However, in any calendar year the total number of Joint Use Pole Units sold under this Clause 3.10 shall not exceed ten percent (10%) of the total number of Joint Use Pole Units. 3.10 Commencing in the calendar year following the attainment of a Joint Ownership Ratio of 60 % Power Company, 40 % Newfoundland Telephone, the Parties shall maintain the Joint Ownership Ratio by sharing opportunities to install and installing Joint Use Pole Units or Pole Units projected for Joint Use in the appropriate ratio. -14- ARTICLE IV SELLING PRICE OF POLE UNITS 4.01 The purchasing Party shall pay to the selling Party for each Pole Unit sold under this Agreement the Net Book Value of the Pole Unit, together with interest from January 1st next following the effective date of the sale, at a monthly rate of one twelfth (1/12) of the annual rate determined as the lowest current prime commercial lending rate during that month at the Bank of Montreal plus one percent (1%). 4.02 Upon request made prior to the sale, the selling Party will provide the purchasing Party with the information and documentation reasonably required by the purchasing Party to assess and review the selling Party's Net Book Value of the Pole Unit. If the parties are unable to agree that the Net Book Value is correct, then the matter shall be referred to arbitration and no invoice shall be issued for that Pole Unit until an arbitration decision is rendered. -15- f— ARTICLE V CONDITIONS OF SALE 5.01 Pole Unit sales to achieve and maintain a Joint Ownership Ratio of 60% Power Company, 40% Newfoundland Telephone shall be scheduled as follows: January 31 The Parties shall complete the necessary Pole Unit counts and agree on the quantity of the sale. February 28 The selling Party shall identify suitable Pole Units for sale to the purchasing Party. March 31 The purchasing Party shall complete inspection of the Pole Units proposed to be sold to ensure suitability; the selling Party shall deliver an invoice to the purchasing Party. April 30 The purchasing Party shall pay the selling Party for the Pole Units, as provided in Article IV - SELLING PRICE OF POLE UNITS. June 30 The transaction shall be completed and the duly executed Bill of Sale shall be delivered in such form and together with any other documentation that the purchasing Party may -16- require, transferring Ownership to the purchasing Party. The Parties shall make all reasonable efforts to adhere to this schedule. 5.02 The selling Party shall at the reasonable request and expense of the purchasing Party, execute and deliver all such further acts, deeds and assurances as may be reasonably required for more perfectly assuring the transfer and sale of the Pole Units to the purchasing Party. 5.03 The selling Party shall sell to the purchasing Party under this Agreement, only those Pole Units which, at the actual date of sale, it is rightfully and absolutely possessed of and entitled to, and the Pole Units shall be free and clear of any liens and encumbrances at the actual date of sale, except for any liens or encumbrances that may be accepted in writing by the purchasing Party. 5.04 The purchasing Party shall at all times after the actual date of sale have, hold, possess and enjoy the Pole Units for its own use and benefit without any hindrance, interruption, claim or demand whatsoever of, from or by the selling Party, or any other person, except as may be provided in the Joint Use Agreement. 5.05 Once payment for any Pole Unit has been made to the selling Party, the selling Party shall become the Tenant. . -17- 5.06 With respect to any Pole Unit sold under this Agreement, the purchasing Party shall remove from that Pole Unit any indication or sign of ownership by the selling Party. -18- ARTICLE VI INVOICES AND PAYMENTS 6.01 Except for invoices delivered under Clause 5.01, accounts shall be deemed overdue if not paid within thirty (30) days after receipt of the invoice. The Parties shall pay interest charges on overdue accounts at a monthly rate of one twelfth (1/12) of the annual rate determined as the lowest current prime commercial lending rate during that month at the Bank of Montreal plus one percent (1%). Such interest charges shall be compounded at the monthly rate for each month or part month the account remains overdue. 6.02 Upon completion of work performed by either Party, the expense of which is to be borne wholly or in part by the other Party, the Party performing the work shall, after its completion, deliver to the other Party an invoice showing the work completed and an itemized list of labour, materials and other expenses. In the event that a project is not completed within thirty (30) days, progress billings indicating work completed may be rendered monthly. 6.03 Where, under this Agreement, it is considered advisable by agreement of both Parties, in the interest of economy, to use unit charges as representing the cost of certain operations in lieu of actual costs, nothing in the foregoing terms of this Article shall preclude the practice of so doing. -19- ( ARTICLE VII LIABILITIES AND DAMAGES 7.01 This Agreement is intended for the mutual benefit and protection of the Parties and non-conformity therewith shall not create any presumption of fault on the part of either Party in favour of any Others. 7.02 Each Party shall bear its own losses and costs where a claim or demand does not arise from the negligence of the other Party, its agents or employees. -20- ARTICLE VIII DEFAULTS 8.01 Where either Party defaults in any of its obligations under this Agreement, the Party not in default may give the other Party written notice of such default. If such default continues thirty (30) days after notice thereof, the Party not in default may, in addition to any other remedy it may have, forthwith terminate this Agreement provided, however, that nothing contained in this Clause 8.01 shall affect any rights or obligations which either Party may have under The Public Utilities Act, R.S.N. 1990, c. P-47 or the Telecommunications Act, S.C. 1993, c.38. 8.02 A default under the Joint Use Agreement shall be deemed to be a default under this Agreement and a default under this Agreement shall be deemed to be a default under the Joint Use Agreement. -21- ARTICLE IX IMPOSSIBILITY OF PERFORMANCE 9.01 Where the performance by either of the Parties of any of their respective obligations as contained in this Agreement shall to any extent be prevented, restricted, delayed, or interfered with by reason of any of the following: (i) war, revolution, civil commotion, riots, acts of public enemies, blockade or embargo, any strike, lockout or other labour difficulty or work stoppage, explosion, epidemic, fire, flood, freeze, severe winter conditions, ice blockage, acts of God or order of any Governing Body having jurisdiction; (ii) the prohibition, restraint, restriction or prevention from installing, constructing or replacing Facilities or for making available any portion of any such Facilities by any statute law, by-law, ordinance, regulations, judgement, or by the property rights of Others, or the removal, or threat of removal of any easement, right-of-way, servitude or other privilege; then such Party shall, on written notice to the other, be excused from the performance of such obligations but only to the extent of the period of such prevention, restriction, delay or -22- interference, provided that the provisions contained in this Article shall not apply to the obligations of such Party to pay the amounts required to be paid to the other Party in the manner and at the time provided in this Agreement. -23- ARTICLE X ASSIGNMENT OF RIGHTS 10.01 Except as otherwise provided in this Agreement, neither Party * shall assign or otherwise dispose of this Agreement, or any of its rights or interests hereunder in any of the Joint Use Facilities to Others without the written consent of the other Party which shall not be unreasonably withheld, provided, however, that nothing herein contained shall prevent or limit the right of either Party to mortgage any or all of its property, rights, privileges and franchises, or lease or transfer any of them to another corporation organized for the purpose of conducting a business of the same general character as that of such Party, or to enter into any merger or consolidation and in the case of the foreclosure of such mortgage, or in the case of such lease, transfer, merger or consolidation, its rights and obligations hereunder shall pass to and be acquired and assumed by the purchaser on foreclosure, or the transferee, lessee, assignee, or merged or consolidated company, as the case may be. -24- ARTICLE XI NOTICES 11.01 (a) (i) Any notice required to be given under this Agreement shall be in writing from one Party's representative on the Joint Use Committee to the other Party's representative on.the Joint Use Committee and shall be sufficiently given if sent by registered mail, sent by facsimile transmission, or delivered by hand and addressed, in the case of the Power Company, to its Head Office, St. John's, Newfoundland, and in the case of Newfoundland Telephone to its Head Office, St. John's, Newfoundland. (ii) A notice sent by registered mail is deemed to have been given on the third business day following such mailing. (iii) A notice sent by facsimile transmission, shall be deemed to have been given on the business day following the transmission of the communication. (iv) A notice delivered by hand shall be deemed to have been given on the date of actual delivery. (b) Where the notice is a notice required under ARTICLE II - -25- JOINT USE POLE INSTALLATION, notwithstanding Clause ll.Ol(a), it shall not be effective unless given from and to: (i) on behalf of Newfoundland Telephone, the applicable one of: Manager, Outside Plant Engineering East P.O. Box 2110 St. John's, Newfoundland A1C 5H6, or Manager, Outside Plant Engineering West P.O. Box 98 Corner Brook, Newfoundland A2H 6C5, or Manager, Outside Plant Engineering Central 3 Bell Place Gander, Newfoundland A1V 2K6 (ii) on behalf of Power Company, - Manager, Distribution Systems & Services P.O. Box 8910 St. John's, Newfoundland A1B 3P6 with copies sent to the Party's representatives on the Joint Use Committee. (c) Where the notice is a notice of termination or default, notwithstanding Clause 11.01(a) above, it shall not be effective unless given from the President of one Party to the President of the other Party with copies sent to the Party's representatives on the Joint Use Committee. -26- 11.02 Either Party may at any time, and from time to time, change its address for notice, or the person designated to receive such notice, provided in this Article XI by giving notice in writing, as provided in this Article XI, to the other Party of this change. -27- ARTICLE XII WAIVER OF TERMS OR CONDITIONS 12.01 The failure of either Party to enforce any of the terms or conditions of this Agreement shall not constitute a general or specific waiver or relinquishment of any such terms or conditions, but the same shall be and remain at all times in full force and effect. -28- ARTICLE XIII PAYMENT OF TAXES 13.01 The purchasing Party will be solely responsible for any and all sales tax payable by reason of the sale of Pole Units by the selling Party to the purchasing Party. The selling Party shall ensure that all other taxes, rates and assessments are fully paid and satisfied as of the actual date of sale. -29- ( ARTICLE XIV ARBITRATION 14.01 (a) Where any dispute or difference arises as to any matter or thing relating to or in respect of this Agreement, such dispute or difference shall be referred to arbitration in accordance with the provisions of The Arbitration Act, R.S.N. 1990, c.A-14, as amended, and shall be submitted to a sole arbitrator agreed upon between the Parties. The decision of the sole arbitrator shall be final and binding upon the Parties. (b) Where the Parties are unable to agree upon a sole ( arbitrator, such dispute or difference shall be referred to three (3) arbitrators. One (1) arbitrator shall be appointed by each Party, and the remaining arbitrator, who shall be chairman, shall be selected by the arbitrators appointed as herein provided. The decision of any two (2) arbitrators shall be final and binding upon the Parties. (c) The costs of any such arbitration, including reasonable compensation for the arbitrator, or arbitrators, shall be borne and paid equally by the Parties, or as the arbitrator or arbitrators may otherwise direct. -30- ARTICLE XV TERRITORIES COVERED BY THIS AGREEMENT 15.01 The terms and provisions of this Agreement shall apply to Facilities in the territories in which the Joint Use Agreement applies. -31- ARTICLE XVI TERM OF AGREEMENT 16.01 Regardless of the date of execution, this Agreement shall continue in force for the period from January l, 1994 to December 31, 1999 and shall not be terminable during such period except as stated elsewhere in this Agreement. 16.02 After December 31, 1999, this Agreement shall continue in full force and effect indefinitely unless and until terminated by notice in writing as provided in this Article XVI. 16.03 (a) This Agreement may be terminated by at least twelve (12) months notice in writing, given at any time following the commencement date of this Agreement, by either Party to the other, provided that such notice of termination may not specify a termination date prior to the period ending December 31, 1999. (b) This Clause 16.03 does not apply to a notice of termination given under either ARTICLE VIII - DEFAULTS or ARTICLE XVII - REGULATORY IMPACT. -32- ARTICLE XVII REGULATORY IMPACT 17.01 The Parties recognize that Newfoundland Telephone is subject to regulation by the CRTC. Newfoundland Telephone shall provide notice to the Power Company of any regulatory hearing scheduled by the CRTC which involves consideration of any term of this Agreement. Where the CRTC makes an order affecting any term of this Agreement, then, subject to Clause 17.03, this Agreement shall be deemed to be modified to comply with such order. 17.02 The Parties recognize that the Power Company is subject to regulation by the Board. The Power Company shall provide notice to Newfoundland Telephone of any regulatory hearing scheduled by the Board which involves consideration of any term of this Agreement. Where the Board makes an order affecting any term of this Agreement, then, subject to Clause 17.03, this Agreement shall be deemed to be modified to comply with such order. 17.03 Where an order of the Board or the CRTC results in a termination under Article XX of the Joint Use Agreement, then this Agreement shall be deemed to terminate on the same date as the Joint Use Agreement. -33- ARTICLE XVIII MISCELLANEOUS PROVISIONS 18.01 This Agreement shall enure to the benefit of and shall be binding upon the successors, and subject to ARTICLE X - ASSIGNMENT OF RIGHTS upon the assigns of the Parties respectively. 18.02 The headings used in this Agreement are for information purposes only and not to be construed as part of this Agreement. -34- 0 IN WITNESS WHEREOF the Parties have caused these presents to be executed in duplicate and their corporate seals to be hereunto affixed, attested by the signatures of their respective officers duly authorized in that behalf. THE COMMON SEAL of Newfoundland) NEWFOUNDLAND TELEPHONE COMPANY Telephone Company Limited was ) LIMITED hereunto affixed by its duly ) authorized officers at St. „) John's, Newfoundland, this Jj*' ) day of •^e/*t«^C^7, 1995, ) in the presence of: ) THE COMMON SEAL of Newfoundland) NEWFOUNDLAND LIGHT & POWER CO. Light & Power Co. Limited was LIMITED hereunto affixed by its duly authorized officers at St. John's, Newfoundland, this day of ^jdif^ujwA- , 1995, in the presence or: ELIZABETH BABSTOCK A Commissioner for Oath! In and tor Newfoundland. My rommlssJon expires Decemi?er 3t,t3»5. NLH-7.0 Page 1 of 2 Q. NLH 7.0 7.1 Provide any and all reports, analyses or other documentation related to the Applicant's analysis of the positive financial impact of the operational efficiency improvements that the Applicant expects to achieve as it gains experience with the new arrangement as referenced at page 8 of 8 of Exhibit 10 of the Applicant's Pre- filed Evidence included with the Application. 7.2 Provide any separate information that the Applicant has in its possession related to the specific financial impact on operational efficiency of including and/or excluding the non-joint use poles. A. 7.1 As noted at page 7, line 17 et seq. of the Direct Evidence of Newfoundland Power, the operating benefits related to the elimination of duplication in the administration of the joint use of support structures are difficult to quantify. Newfoundland Power has not performed an analysis of the specific financial impacts of the operational efficiency gains it expects to achieve under the new arrangement. Due to the difficulty in quantification, no allowance has been made for these efficiency gains in the economic analyses contained in Exhibit 10. While any efficiency gains achieved under the new arrangement will increase the benefits to Newfoundland Power and its customers, the economic analyses in Exhibit 10 clearly demonstrate that the new arrangement will be of economic benefit to Newfoundland Power and its customers, whether or not such efficiency gains are realized. Newfoundland Power expects that the streamlining of administrative processes and the elimination of duplicate work will increase the efficiency of administration of joint use. Support for Newfoundland Power's expectation that operational efficiency benefits will be realized can be found in observations made in the 1996 report of BDO Dunwoody, an independent consultant appointed by the Board to review issues related to the access to poles by cable television operators. The consultant's observations that maintaining a system for the detailed tracking of attachments on poles is extremely difficult, that the costs associated with the system are extremely high and that all parties involved are not able to realistically provide and maintain the information and accounting records required, have been reproduced at page 9 of the Response to Information Request PUB-1.0. NLH-7.0 Page 2 of 2 7.2 While operating efficiency gains of including or excluding non-joint use poles have not been specifically identified, Response to Information Request PUB-1.0, page 5, paragraph 1 clearly demonstrates the consumer impacts will be most positive when the non-joint use poles are included in this transaction. The additional cost of accounting for the non-joint use poles, assets and revenues separate from the joint-use poles would diminish the consumer benefits of the proposed arrangement and therefore be contrary to the policy of the province set out in Section 3(b) (i) through (iii) of the Electrical Power Control Act, 1994 which promotes the management and operation of power assets in a way which results in the lowest possible consumer cost. Eti i 00 NLH-8.0 Page 1 of 1 (1st Revision) Q. NLH 8.0 8.1 Pursuant to the Support Structures Purchase Agreement included as part of the Application, the sale of poles is for all poles in the Region, which is defined as "the island portion of the Province of Newfoundland". Please explain why a third party consent is required with respect to a Crown Lease No. 106053, Labrador as referenced in Schedule 6 - Third Party Consents of the Agreement. A. The item in Schedule 6 to the Support Structures Purchase Agreement referencing a Crown Lease in Labrador was inadvertently included in the list of required third party consents. Due diligence has revealed that no such consent is required in relation to the acquisition of the support structures being purchased by Newfoundland Power. Newfoundland Power's agreement to purchase support structures under the terms contained in the Support Structures Purchase Agreement is subject to Newfoundland Power's satisfying itself as to all aspects of the assets being purchased. As a result of the due diligence performed by Newfoundland Power since the execution of the Support Structures Purchase Agreement on March 1st, 2001, some relatively minor adjustments to the transaction such as deletion of this item have been required. None of the adjustments to the transaction arising from due diligence, except those related to price and described in Response to Information Request NLH-9.0, is material to this transaction. H-8.0 age lof 1 Q. NLH 8.0 S.I Pursuant to the Support Structures Purchase Agreement included as part of the Application, the sale of poles is for all poles in the Region, wjiich is defined as "the island portion of the Province of Newfoundland". Please explain why a third party consent is required with respect to a Crown Lease No. 106053, Labrador as referenced in Schedule 6 - Third Party Consents of the Agreement. z A. The item in Schedule 6 to the Support Structures Pur/hase Agreement referencing a Crown Lease in Labrador was inadvertently included in the list of required third party consents. Due diligence has revealed that no sucji consent is required in relation to the acquisition of the support structures being purchased by Newfoundland Power. Newfoundland Power's agreement to purchase support structures under the terms contained in the Support Structures Purchase Agreement is subject to Newfoundland Power's satisfying itself as to all aspects of the assets being purchased. As a result of the due diligence performed by Newfoundland Power since the execution of the Support Structures Purchase Agreement on/March 1st, 2001, some relatively minor adjustments to the transaction such as deletion of" this item have been required. None of the adjustments to the transaction arising from due diligence, except those related to price and described in Response to Information Request PUB-9.0, is material to this transaction. I NLH-9.0 Page 1 of 2 Q. NLH 9.0 9.1 Article 4.1 of the Support Structures Purchase Agreement, included as part of the Application, provides that the Purchase Price for the Purchased Assets is $49,916,396. Paragraph 8 of the Application references an aggregate purchase price of $45,858,000 for the support structures in the Applicant's service area, a difference of $4,058,396. In the Applicant's Responses to Information Request NLH 3.0, the Applicant stated the Aliant Telecom poles outside the Applicant's service territory represent in the order of $3,000,000 of the total investment contemplated by the Support Structures Purchase Agreement. Please explain the difference of 41,058,396 between the previously stated two values with respect to the Aliant poles located outside the Applicant's service territory. 9.2 Provide a breakdown of the dollar value of Aliant's poles located outside the Applicant's service territory with respect to joint use and non-joint use, as well as the number of joint use poles and non-joint use poles in each community in which they are located or to which they are in close proximity to. A. 9.1 Due diligence conducted since March 1st, 2001 by Newfoundland Power into the assets to be purchased under the Support Structures Purchase Agreement has resulted in adjustments to the net book value of the support structures to be transferred under the Support Structures Purchase Agreement. The adjusted net book value of all Aliant Telecom support structures on the island of Newfoundland has been determined to be $48,713,000. Of this amount, $2,855,000 represents the net book value of support structures outside of Newfoundland Power's service territory. The principal adjustments to the purchase price related to two anticipated pole sales to Aliant Telecom which were not consummated at March 1st, 2001. One pole sale was from Newfoundland Power to Aliant Telecom which was to be effective December 31st, 1999. This pole sale would, in the normal course, have been concluded in mid-2000, however, as the parties were negotiating with a view to Newfoundland Power's owning all support structures, such a transaction was seen as premature. A similar pole sale from Newfoundland and Labrador Hydro to Aliant Telecom to be effective December 31st, 2000 was also reflected in the original amount of $49,916,396 contained in the Support Structures Purchase Agreement. This sale transaction has not yet been consummated and, in any event, relates to support structures outside of Newfoundland Power's service territory. NLH-9.0 Page 2 of 2 9.2 The allocated value of the Aliant Telecom support structures on the island of Newfoundland which are located outside of Newfoundland Power's service territory is $2,855,000. Of this amount $1,431,000 is attributable to joint use poles and $1,424,000 is attributable to non-joint use poles. The detail requested on a community by community basis for support structure outside of Newfoundland Power's service territory is not relevant to this proceeding. Please refer to the Response to Information Request NLH-1.2. 2 •5 I NLH-10.0 Page 1 of 1 Q. NLH 10.0 10.1 Pursuant to Subclause 2.03 (a) (v) of the Facilities Partnership Agreement included as part of the Application, the Applicant has contracted to supply and install all new messenger strands required by Aliant Telecom Inc. during the installation of new poles. What is the anticipated cost per span and/or per pole? How will such costs be recovered, and from whom, for the joint use poles and non-joint use poles? A. The anticipated cost to supply and install new messenger strands required by Aliant for new pole installations, growth, as provided in the facilities partnership agreement will cost approximately $75 per pole. This incremental capital cost of approximately $200,000 per annum has been included in the estimates of used in the economic analyses contained in Exhibit 10 and all accounting and economic analysis used in the responses to requests for information. The costs are recovered through the financial terms of Facilities Partnership Agreement including annual rentals payable by Aliant, CATV revenues assumed from Aliant, and capital contributions. Exhibit 10 and the Responses to Information Requests PUB 1.0 and NLH 2.0, which include the incremental costs and revenues associated with strand, clearly demonstrate that all costs of this arrangement are recovered and will benefit customers. 2 NLH-11.0 Page 1 of 1 Q. NLH 11.0 11.1 On page 5 of the Pre-filed Direct Evidence of the Applicant, the Applicant references a $510 charge for each non-joint use pole that Aliant requires. What is the basis of this capital contribution and how was this amount determined? 11.2 Why was the acquisition price for existing non-joint use poles under the Support Structures Purchase Agreement not adjusted to reflect the equivalent of the capital contribution referenced in 11.1 that will be required for newly constructed non-joint use poles? A. 11.1 The $510 charge for each non-joint use pole that Aliant requires recovers the 60% of the cost of a non-joint use pole ($856 shown in Exhibit 10, Schedule I, line 16) that is not recovered through the $32 pole rental fee. The 60% represents the proportion of common costs currently borne by Newfoundland Power for joint use poles (see: Direct Evidence page 1, line 33). Charging Aliant a $32 rental rate plus a capital contribution for each non-joint use pole ensures that these poles are more than fully compensatory. 11.2 Through negotiation the parties determined that the acquisition price would be the net book value of the poles. Rental revenues, contributions and related matters covered by the Facilities Partnership Agreement were negotiated. The cashflows to be received by Newfoundland Power are sufficient from a regulatory perspective to both justify payment of the acquisition price and ensure recovery of future expenditures. The economic analyses prepared by Newfoundland Power and shown in Exhibit 10, Schedule A demonstrates the incremental revenues from Pole Rentals and CATV attachment charges are significantly higher than the incremental costs associated with the acquisition of all existng poles in Newfoundland Power's service territory which will be acquired under the Support Structures Purchase Agreement. Since the revenues under the Facilities Partnership Agreement ensure the acquisition cost of all existing poles will be more than fully recovered, adjustment to the acquisition price is unwarranted. Both Newfoundland Power and Aliant recognize that the pole rental fee of $32 does not fully compensate Newfoundland Power with respect to the installation on newly constructed non-joint use poles. Consequently they have agreed that Aliant will pay Newfoundland Power a contribution of $510 towards these support structures. This contribution has been included in the economic analysis at Exhibit 10, Schedule I, line 17. •2, NLH-12.0 Page 1 of 1 Q. NLH 12.0 12.1 What record keeping that was maintained with respect to the Joint Use Agreement between the Applicant and Aliant Telecom will no longer be required as a result of the implementation of the Support Structures Agreement and/or the Facilities Partnership Agreement? 12.2 What, if any, new record keeping will be required with respect to the two agreements referenced in 12.1? A. 12.1 Implementation of the Support Structures Agreement and the Facilities Partnership Agreement will significantly streamline and reduce the record keeping associated with support structure construction, operation and maintenance. As referred to on page 6, line 30 of the Direct Evidence Newfoundland Power, has primary responsibility for support structures in it's service territory. That responsibility practically requires Newfoundland Power to coordinate the installation and replacement of poles on behalf of Aliant. Engineering staff responsible for the work must record the time spent on each job involving Aliant's poles, prepare requests for billing to Aliant and reconcile the work done with the amount billed to Aliant. Financial staff must issue the invoices to Aliant and track them through to payment. Since Newfoundland Power coordinates the clearing of brush on pole lines for both companies, engineering staff must track the amount of brush cleared and determine Aliant's proportion of costs. Given the mixed ownership of lines by Newfoundland Power and Aliant, these determinations can lead to bonafide differences of opinion which must be resolved. Again, Newfoundland Power's financial staff must issue the ' appropriate invoice to Aliant and track it through payment. The current Joint Use Agreement requires an annual reconciliation of pole ownership of Newfoundland Power and Aliant to determine the percentage of poles owned by each company. This is required to effect the annual sales of poles from one company to another to maintain a 60/40 ownership ratio of poles. In addition, such sales require identification of proposed poles to be sold and agreement by the parties. These are examples of documentation and record keeping requirements that will be eliminated under the new agreement. 12.2 With respect to the two new agreements no significant new record keeping will be required. NLH-13.0 Page 1 of 4 Q. NLH 13.0 13.1 In response to PUB 5.1, the Applicant indicated that none of the electrical utilities surveyed own the poles used exclusively by the telecommunications company. Is the Applicant aware of any electrical utility in Canada that has been permitted to include assets used exclusively for telecommunications in the electrical utility rate base? 13.2 Is the Applicant aware of any cases in which an electrical utility in Canada has included assets in rate base which are providing non-electrical service, that has not been required to demonstrate, on an actual and ongoing basis, that the revenue received from such assets is sufficient to recover related costs and that there is no subsidization of this activity by electrical ratepayers? 13.3 If the answer to 13.1 or 13.2 is negative, what are the unique operational or economic characteristics of the Applicant that merit the proposed treatment with respect to non-electrical assets? 13.4 In light of changing circumstances that may have an adverse impact on the financial attractiveness of the Applicant's current proposal with respect to poles not used for electrical service, such as a decline in cable company attachments (up to $99,999/year), an increase in the average size of a non-joint use pole, or excessive premature replacements of non-joint use poles, what systems or procedures are in place, or what records will be maintained, which will enable the Applicant to demonstrate that the revenue received from such assets is sufficient to recover related costs? 13.5 What records will the Applicant maintain to ensure that Aliant repurchases each non-joint use pole it no longer requires and that Aliant is billed the applicable contribution for each additional non-joint use pole that is installed by the Applicant? A. 13.1 Newfoundland Power is not aware of any electrical utility in Canada that has been permitted to include assets used exclusively for telecommunications in the electrical utility rate base, however, Newfoundland Power has not inquired into the matter. Newfoundland Power does not accept the premise that any of the assets proposed to be acquired by it are or will be used exclusively for telecommunications. Section 53 of the Public Utilities Act specifically mandates joint use of public utility equipment. NLH-13.0 Page 2 of 4 Newfoundland Power and Aliant Telecom have come to an overall agreement upon the terms of such joint use on a distribution support structure network basis. This is consistent with, amongst other things, the accounting for these assets. Put another way, the non-joint use poles are an integral part of a group of assets, the use of which is shared by electric, telecommunications and CATV service providers to the benefit of consumers of all of those services. While at any point in time some support structures will only be used by one of the parties, this situation will be dynamic as each party's requirements change. The detailed tracking required to determine if a particular pole is jointly used at a particular point in time for rate base certification will be as inefficient and expensive as past attempts to track CATV attachments which are outlined more fully in Response to Information Request PUB-1, pp. 3 to 4 and 6 to 9. Prospects to improve tracking of attachments are limited by the fact that neither Newfoundland Power nor Aliant Telecom actually distinguish between joint use and non-joint use poles in their respective accounting records or in any other definitive way. Even if such tracking could be economically undertaken, it would not yield any perceptible consumer benefit. The Board has a large jurisdiction in determining what may be included in Newfoundland Power's rate base so long as the determination adopted achieves the purposes of the Public Utilities Act and the provincial power policy contained in the Electrical Power Control Act, 1994. Newfoundland Power believes that the Board has the discretion under the provisions of the Public Utilities Act and the Electrical Power Control Act, 1994 to permit the non- joint use poles to be included in Newfoundland Power's rate base. Further, in the circumstances outlined in the Application, the Board would merely be acting in accordance with the purposes of the legislation and the provincial power policy if it did permit the inclusion of the non-joint use poles in rate base. The inclusion of the non-joint use poles in Newfoundland Power's rate base will clearly serve to reduce the overall cost borne by electric consumers on account of support structures. In addition, Section 78(2)(h) of the Public Utilities Act explicitly permits the Board to include in rate base fair and reasonable expenses which the Board thinks appropriate and basic to a utility's operation in addition to the value of property determined under Section 64 to be used and useful. At a value of $5,418,000, the non-joint use poles would represent approximately 1% of Newfoundland Power's rate base. The cost associated with this portion of the rate base (including the cost of capital) has been shown by economic and accounting analyses filed in support of the Application to be more than recovered under the provisions of a long- term Facilities Partnership Agreement with Aliant Telecom. NLH-13.0 Page 3 of 4 The Applicant is aware of electrical utilities in Canada that have included (or have proposed to include) costs associated with telecommunications assets in electrical rates while seeking to recover a portion of the costs of those assets from third parties. Newfoundland and Labrador Hydro has, for example, specifically outlined plans to be use telecommunication assets to generate additional revenue through leasing of bandwidth in its 1997 Telecommunication Plan (filed in Response to Information Request NP-1 in Hydro's 2001 Capital Expenditure Application; see pp. 29 to 30). Other electrical utilities, including Nova Scotia Power, have undertaken similar investments. Newfoundland Power sees no conceptual or regulatory difference in treating such assets as telecommunications bandwidth differently than support structures. 13.2 See 13.1 above. 13.3 Among the unique operational and economic characteristics that justify the inclusion of single use telecommunication poles in Newfoundland Power's rate base are: 1. Inclusion of the non-joint use telecommunications poles in rate base actually reduces the overall cost borne by electric ratepayers served by Newfoundland Power on account of support structures; 2. Since 1998, Newfoundland Power has been providing engineering design and support structure installation services to Aliant Telecom and is familiar with the operating circumstances associated with Aliant Telecom support structures in Newfoundland Power's service territory ; 3. Future installations of non-joint use telecommunications poles will require a contribution in aid of construction on the part of Aliant Telecom representing 60% of the cost of construction which practically will serve to ensure that no cross subsidization of telecommunication support service costs by electricity consumers occurs in the future; and 4. The inclusion of the non-joint use telecommunications poles in rate base permits the most efficient distribution of power in accordance with provincial power policy as contained in the Electrical Power Control Act, 1994. 13.4 Newfoundland Power does not believe any of the circumstances set out in Information Request NLH 13.4 constitutes a material adverse impact on the financial attractiveness of the proposal contained in the Application. A possible decline in CATV attachments of representing less than $ 100,000 per year in rentals is too small to be considered material. An increase in the average size of a non- joint use telecommunications pole of 5 feet would result in a per pole increase in costs in the order of $50, or less than 6% ($50/$856 per Schedule 1 to Exhibit 10) which is not material. In its Response to Information Request NLH-2(b), Newfoundland Power NLH-13.0 Page 4 of 4 performed analysis which shows that an increase in the proportion of non-joint use poles from 15% to 20% actually increases the customer benefits experienced as a result of this transaction. The most significant circumstance that might have a material adverse impact on the financial attractiveness of the proposal contained in the Application would be a reduction in attachments by Aliant which resulted in a material reduction in rental revenues. A reduction in Aliant attachments (179,943 at December 31st, 2000, per Exhibit 2) below 170,000 permits Newfoundland Power to terminate the Facilities Partnership Agreement. 13.5 Current distribution engineering design, job costing and customer billing systems will be adequate to ensure, on a job by job basis, Aliant repurchases those non-joint use poles upon which it no longer has attachments and is properly billed for each additional non- joint use pole it requires. Newfoundland Power Inc. NEWFOUNDLANDS 55 Kenmount Road POWER PO Box 8910 A FORTIS COMRVNY St. John's, Newfoundland A1B3P6 HAND DELIVERED Business: (709) 737-5600 Facsimile: (709) 737-2974 www.newfoundlandpower.com June 4, 2001 Board of Commissioners of Public Utilities i. , P.O. Box 21040 120 Torbay Road St. John's, NF A1A5B2 JUN 2001 Attention: Ms. Cheryl Blundon Board Secretary Ladies & Gentlemen: Re: Newfoundland Power Inc.'s ("the Applicant") Application to acquire the Support Structures of Aliant Telecom Inc. located in the Applicant's service territory Enclosed please find 15 copies each of the Applicant's Responses to Information Requests PUB 9.0 through 15.0. For convenience we have provided the Responses on 3 hole punched paper. We trust the enclosed are found to be in order. Yours very truly, Peter Alteen Corporate Counsel and Secretary Enclosure c. Mr. Wayne D. Chamberlain Newfoundland and Labrador Hydro Mr. Glen D. Belbin Heywood, Kennedy, Belbin Telephone: (709) 737-5859 Website: http://www. newfoundlandpower. com Fax: (709) 737-2974 Email: [email protected] Newfoundland Power Inc. NEWFOUNDLANDS 55 Kenmount Road POWER PO Box 8910 A FORTIS COMFANY St. John's, Newfoundland A1B3P6 Business: (709) 737-5600 Facsimile: (709) 737-2974 www.newfoundlandpower.com HAND DELIVERED May 29, 2001 RECEIVED BY HAND Board of Commissioners BOARD OF COSOJSSIONERS of Public Utilities OF PUBLIC fJIIOTiS P.O. Box 21040 / c 120 Torbay Road MAY SO 2001 St. John's, NF Al A 5B2 ST. JOHN'S Attention: Ms. Cheryl Blundon NEWFOUNDLAND Board Secretary Ladies & Gentlemen: Re: Newfoundland Power Inc.'s ("the Applicant") Application to acquire the Support Structures of Aliant Telecom Inc. located in the Applicant's service territory. Enclosed please find 15 copies each of the Applicant's Responses to Information Requests PUB 5.0 through 8.0. For convenience we have provided the Responses on 3 hole punched paper. We trust the enclosed are found to be in order. Yours very truly, Peter Alteen Corporate Counsel and Secretary Enclosures Newfoundland Power Inc. NEWFOUNDLAND: 55 Kenmount Road POWER PO Box 8910 A FORTIS COMFANY St. John's, Newfoundland A1B3P6 Business: (709) 737-5600 Facsimile: (709) 737-2974 HAND DELIVERED www.newfoundlandpower.com May 24, 2001 Board of Commissioners of Public Utilities P.O. Box 21040 120 Torbay Road MAY m 2001 St. John's, NF A1A 5B2 Attention: Ms. Cheryl Blundon Board Secretary Ladies & Gentlemen: Re: Newfoundland Power Inc.'s ("the Applicant") Application to acquire the Support Structures of Aliant Telecom Inc. located in the Applicant's service territory Enclosed please find 15 copies each of the Applicant's Responses to Information Requests PUB 1.0 through 4.0. For convenience we have provided the Responses on 3 hole punched paper. We trust the enclosed are found to be in order. Yours very truly, Peter Alteen Corporate Counsel and Secretary Enclosure PUB-1 Page 1 of 9 Q. PUB 1.0 Please provide, using the following scenarios and the assumptions currently being used in the company's five-year plan, the projected income statements, the total revenue requirements, the effect on rate base, the effect on rate of return on rate base, and the effect on rate of return on equity for each of the years from 2001 to 2005, inclusive: a. the status quo, with the continuation of the present Joint Use Agreement and without the purchase of the support structures; b. the purchase of 101,875 support structures using the payment schedule as outlined in the application; c. the purchase of 101,875 support structures using a payment schedule of 5 equal annual payments; and d. the purchase of 101,875 support structures if the 30,000 non-joint use poles were to be excluded from the rate base and the revenues from these poles were to be excluded from regulated earnings. This scenario assumes the payment schedule outlined in the application and the exclusion of the 30,000 poles from the rate base in 2001. A. General Overview Information Request PUB 1.0 has been interpreted by Newfoundland Power as principally requiring a number of accounting based analyses using pro-forma financial statements. These analyses are found in the appendices to this Response to Information Request PUB 1.0. Insofar as the Information Request PUB 1.0 refers to ".. .the total revenue requirements..." of Newfoundland Power, it has been dealt with on an incremental economic basis as opposed to accounting basis under Revenue Requirements below. Newfoundland Power cannot ascertain total revenue requirements as requested because revenue requirements are determined on a prospective or test-year basis in a general rate proceeding and cannot reasonably be ascertained on an pro-forma accounting basis over multiple period time horizons. As is shown in Revenue Requirements below, the net impact on total revenue requirements is small and in a range of approximately .2% to .3% of 1999 test year revenue requirements. While accounting impacts are a significant aspect of any asset acquisition, it is widely accepted that investment decisions should be evaluated by means of economic analyses based upon net present values ("NPV") (see, for example, Chapter 5, Principles of Corporate Finance, Brealey, Myers, et. al.). This approach was endorsed by the Board in Order No. P.U. 6(1991). PUB-1 Page 2 of 9 One advantage of NPV analyses is that they permit a greater level of confidence in sensitivity analysis. Accounting analyses using pro-forma corporate financial statements engage the complex interrelationships which are inherent in an enterprise such as Newfoundland Power and make direct conclusions as to the effect of changing assumptions much more difficult. The Analyses Appendix A Appendix A contains a 5 year pro-forma financial statement analysis assuming the Joint Use Agreement continued into the future. The assumptions used in this analysis are f contained in Appendix A and are the assumptions used in Newfoundland Power's ^ business planning for 2001 which was undertaken in the autumn of 2000. Pro-forma forecasts for 2002 and subsequent years indicate eroding rates of return on rate base (see: Appendix A, Page 6, line 18) and common equity (see: Appendix A, Page 7, line 8). /•"" The assumption that the current Joint Use Agreement could continue in its present form V into the future does not reflect the reality of the relationship between Newfoundland Power and Aliant Telecom Inc. Changes in pole ownership and management responsibilities since execution of the current Joint Use Agreement would have required some changes to current arrangements in any event and negotiations to this end commenced in 1999. Appendix B Appendix B contains a 5 year pro-forma financial statement analysis based upon the assumptions in Appendix A indicating the effect of the proposed acquisition of the Aliant Telecom Inc. support structures. The proposed acquisition of the Aliant Telecom Inc. support structures improves the rate of return on rate base for 2001 through 2005 by an average of 8 basis points per year (see: Appendix B, Page 6, line 18). The rate of return on common equity improves by an average of 35 basis points (see: Appendix B, Page 7 line 8) per year. These improved rates of return indicate that the proposed acquisition will have a positive impact on consumer rates. PUB-1 Page 3 of 9 Appendix C Appendix C contains a 5 year pro-forma financial statement analysis based upon the assumptions in Appendix A and assuming the proposed acquisition of the Aliant Telecom Inc. support structures using a payment schedule of 5 equal annual amounts. Acquisition of the Aliant Telecom Inc. support structures by 5 equal annual payments improves the rate of return on rate base for 2001 through 2005 by an average of 6 basis points from those indicated in Appendix A (see: Appendix C, Page 6, line 18). This is 2 basis points (or approximately 25%) less improvement than indicated in Appendix B which reflects the proposed acquisition. Similarly, rates of return on equity are improved (by an average of 21 basis points) from those indicated in Appendix A (see: Appendix C, ( Page 7, line 8). But, this improvement is approximately 40% less than indicated for the proposed acquisition. Newfoundland Power and Aliant Telecom Inc. have negotiated the deal over the course of approximately 2 years and there is little likelihood of an alteration in payment terms without a corresponding alteration in purchase price and/or rental rates. /' Appendix D Appendix D contains a 5 year pro-forma financial statement analyses based upon the assumption in Appendix A and assuming that the 32,027 non-joint use poles were excluded from rate base and associated revenues were excluded from regulated earnings. Exclusion of the non-joint use poles and associated revenues from regulated rate base and revenue respectively reduces the consumer benefits of this transaction. Such exclusion v improves the rate of return in rate base by an average of 6 basis points for 2001 through 2005 from those indicated in Appendix A (see: Appendix D, Page 6, line 18). This is less improvement then indicated in Appendix B which reflects the proposed acquisition. Similarly rates of return on equity are improved (by an average of 28 basis points) from those indicated in Appendix A (see: Appendix D, Page 7, line 8). But, this improvement is approximately 20% less than indicated for the proposed acquisition. The difference between the improved rates of return indicated in Appendix D and Appendix B would , in the event that the non-joint use support structures were excluded from rate base, accrue to Newfoundland Power's shareholders as opposed to consumers. Newfoundland Power chose not to propose such a course for a number of reasons. Firstly, the mix of joint and non-joint use support structures is dynamic and the tracking of each structure is time consuming and inefficient. The difficulties associated with tracking attachments on a pole by pole basis was the subject of protracted proceedings I before the Board in the mid 1990s. During the course of these proceedings, the Board's PUB-1 Page 4 of 9 consultants BDO Dunwoody in their report observed that the costs of maintaining the information and accounting records required to accurately track attachments on over 200,000 poles is extremely high (emphasis added, copy attached, Pages 6 to 9). As the proposed acquisition is driven by improving cost efficiency such an approach was assessed by Newfoundland Power to be counter-productive. Secondly, the total value of the non-joint use poles is relatively small at $5,418,000 and does not justify segregation given the overall value of the transaction including cashflows. Inclusion of the non-joint use poles in rate base improves consumer benefits. Finally, on an ongoing basis, the joint-use arrangements will require Aliant Telecom Inc. to pay 60% of the cost of any non-joint use pole installations. This protects electricity consumers from any cross- subsidization in a manner which is substantially the same as current policies governing contributions in aid construction which have been approved by the Board in Order No. P.U. 7 (1997-98). Revenue Requirements Schedule A to Exhibit 10 shows the incremental effect of the proposed transaction on Newfoundland Power's total revenue requirements. For 2001 through 2005, the effects on total revenue requirements are as follows: Proposed Transaction Effects on Revenue Requirements ($000s) 2001 2002 2003 2004 2005 Surplus (Deficiency) 914 498 408 580 698 If the proposed acquisition of the Aliant Telecom Inc. support structures was paid for by a schedule of 5 equal annual amounts the effect on revenue requirements is as follows: 5 Equal Annual Payments Effects on Revenue Requirements ($000s) 2001 2002 2003 2004 2005 Surplus (Deficiency) (64) 78 269 542 799 PUB-1 Page 5 of 9 These impacts on revenue requirements are generally positive, however, they are not as positive as those resulting from the payment schedule contained in the transaction proposed by Newfoundland Power in this Application. If the 32,027 non-joint use poles and associated revenues were excluded from regulated rate base and revenue respectively the effect on revenue requirements of the proposed acquisition is as follows: Exclusion of Non-Joint Use Poles Effects on Revenue Requirements ($000s) 2001 2002 2003 2004 2005 Surplus (Deficiency) 789 391 301 439 531 These impacts on revenue requirements are less positive than either the proposed payment schedule or 5 equal payments. PUB-1 Page 6 of 9 REPORT TO THE BOARD OF COMMISSIONERS OF PUBLIC UTILITIES, NEWFOUNDLAND AND LABRADOR c AUDIT OF THE POLE ACCOUNTS OF NEWFOUNDLAND LIGHT & POWER CO. LTD. FOR THE YEARS 1988 THROUGH 1992 |BDC PUB-1 Page 7 of 9 TERMS OF REFERENCE The mandate of this engagement was to conduct an audit of the pole accounts of Newfoundland Light and Power Co. Ltd. under Section 6 of the Public Utilities Act (Pole Attachment Rate) Order, 1985, including Sections 5 and 6 thereof, with respect to the pole attachment rates for the five annual periods commencing with January 1, 1988 and ending December 31, 1992. The Terms of Reference for this engagement are as follows: ( The independent Auditor (the "Auditor") appointed under Section 6 of The Public Utilities ^ Act (Pole Attachment Rate) Order, 1985 (the "Order") shall conduct an audit in accordance with the Order, including Sections 5 and 6 thereof, with respect to the pole attachment rates for the five annual periods commencing with January 1, 1988 and ending December 31, 1992. More specifically, the audit should include procedures to enable the Auditor to report whether or not: { (a) the number of poles for which charges have been made to operators of licensed cable television systems is reasonable in the circumstances; and (b) the calculation of the Pole Attachment Rate has been made in accordance with clauses 2 and 4 of the Order and the calculations of the weighted average embedded cost per pole and annual carrying charge rate are appropriate in the circumstances and calculated in accordance with the definitions set out in Order No: P.U. 8 (1986), issued ( by the Board of Commissioners of Public Utilities, dated April 14,1986. The audit procedures would also include such other tests of systems, related internal controls, accounting records and supporting information that the Auditor considers necessary in order to arrive at a conclusion with regard to the Pole Attachment Rate and the number of poles on which Cable Companies are attached. In preparing for and conducting the audit, the Auditor shall observe the following steps and procedures: IBDC PUB-1 Page 8 of 9 TERMS OF REFERENCE (cont'd) 1. Upon receipt of the terms of reference for the audit, and upon consideration of any input from the interested parties which is communicated to the Auditor through the Board of Commissioners of Public Utilities, the Auditor will develop a detailed audit plan, including an approach and methodology for satisfying each requirement of the Terms of Reference, and a budget for conducting the work. A copy of the detailed audit plan and budget will be filed with the Board of Commissioners of Public Utilities and copies sent to the interested parties. The interested parties will have a period of time to comment, after which time the Board shall approve the audit plan, either as is or with changes. r 2. The Auditor will then conduct the audit according to the detailed plan, as approved by the Board, and will prepare and file with the Board, a detailed draft report as to their findings with respect to each requirement of the Terms of Reference. The Auditor will keep working papers in accordance with normal auditing practice in order to be able to answer questions with respect to the audit. 3. The interested parties will have a period of time to comment on the Auditor's draft report. On the basis of those comments and the Board's own review, the Board will advise the Auditor of any additional work which is required to satisfy the requirements of Terms of Reference. 4. Once this additional work, if any, has been carried out, the Auditor will complete the final report and file it with the Board. 5. The Auditor will be available to answer questions before the Board if the interested parties have questions to ask. IBPC PUB-1 Page 9 of 9 OBSERVATIONS There are a number of matters that should be taken into account when assessing this report. The first is that the amounts shown as owing as calculated in this report are, especially for the earlier years, estimates calculated using the assumptions stated herein. We believe that the results of the audit are appropriate, which is that net amounts are owed to NLP by the cable companies, however owing to the lack of proper records in the earlier years, we were unable to establish the amounts for those years with any great degree of certainty using the results of our pole count procedures. As set out later in this report, amounts for the years 1988 to 1991 were derived primarily by calculation using the subscriber bases of the various cable companies. Another area of concern which arose during the audit was the fact that all parties involved are spending a great deal of time and money attempting to comply with the current system. Of particular concern was the difficulty in maintaining the joint use data base. Newfoundland Light and Power is in the very difficult position of trying to account for attachments on over 200,000 poles over the entire island. This is an extremely difficult task as there are no controls in place to ensure that they are being provided with the appropriate information to continually update this data base. The system of recording pole attachments did not function reliably in the earlier years and cable attachments were made without the appropriate reports either being made or, if made, details were not entered in the data base by NLP. In fact the system had broken down. In our opinion, the breakdown in the system was as a result of all parties involved not being able to realistically provide and maintain the information and accounting records required. All parties should share the responsibility as no one party strictly adhered to the requirements. However, consideration must also be given to the fact that the system as designed is extremely difficult to maintain. The cost of maintaining this system including periodic tests to ensure that it is operating effectively is, in our opinion, extremely high and there is no certainty that difficulties such as those experienced in the years 1988 to 1991 will not recur. |BDO Newfoundland Power Appendix A Pro-forma Page 1 of 8 Income Statement (OOOs) 2001 2002 2003 2004 2005 1 Revenue from Rates $ 347,931 351,502 355,844 $ 361,059 363,550 2 Purchased Power 197,861 200,371 203,602 207,371 208,867 3 Contribution 150,070 151,131 152,242 153,688 154,683 4 5 Other Revenue 2,191 2,211 2,232 2,263 2,263 6 7 Operating Expenses 49,562 50,086 51,693 53,250 54,923 8 Depreciation 33,346 35,963 37,405 39,178 40,782 9 Finance Charges 27,733 28,347 29,425 30.123 30,733 10 Total Expanses 110,641 122,551 11 114,396 118,523 126,438 12 Income Before Taxes 33,400 13 38,946 35,951 30,508 14 Provision for income Taxes 13,731 17,860 15,935 12,303 15 16 Net Income 21,086 20,016 19,669 18,205 17 18 Preference Dividends 626 626 626 626 19 20 Earnings Common Shares Newfoundland Power Appendix A Pro-forma Page 2 of 8 Statement of Retained Earnings (000s) 2001 2002 2004 2005 1 Balance - Beginning $ 179,389 185,194 186,665 $ 187,066 187,120 2 Net Income for the Period 25,420 21,086 20,016 19,669 18,205 3 204,809 206,280 206,681 206,735 205,325 4 5 Dividends 6 Preference Shares 626 626 626 626 626 7 Common Shares 18,989 18,989 18,989 18,989 18,989 8 19,615 19,615 19,615 19,615 19,615 9 10 Balance - End of Period $ 187,066 $ 185,710 Newfoundland Power Appendix A Pro-forma Page 3 of 8 Balance Sheet (000s) 2001 2003 2004 2005 Assets 1 Property Plant & Equipment $ 951,985 $ 979,072 $ 1,009,313 $ 1,037,691 $ 1,063,918 2 Less: Accumulated Depreciation 417,189 438,359 462,793 487,831 515,396 3 534,796 540,713 546,520 549,860 548,522 4 5 Current Assets 6 Accounts Receivable 35,880 36,054 37,367 38,382 38,660 7 Materials & Supplies 4,500 4,500 4,500 4,500 4,500 Rate Stabilization Account 4,222 4,222 4,222 4,222 4,222 9 44,602 44,776 46,089 47,104 47,382 10 11 Corporate Income Tax Deposit 6,747 6,747 6,747 6,747 6,747 12 Deferred Charges 58,432 60,765 64,183 67,496 71,251 13 14 Total Assets $ 644,577 $ 653,001 $ 663,539 $ 671,207 $ 673,902 15 16 Shareholder's Equity & Liabilities 17 18 Shareholder's Equity 19 Common Shares 70,321 70,321 70,321 70,321 70,321 20 Retained Earnings 185,194 186,665 187,066 187,120 185,710 21 Common Shareholder's Equity 255,515 256,986 257,387 257,441 256,031 22 Preference Shares 9,890 9,890 9,890 9,890 9,890 23 265,405 266,876 267,277 267,331 265,921 24 25 Debt 320,399 326,031 334,989 341,856 344,838 26 27 Current Liabilities 28 Accounts Payable & Accrued Charges 49,062 49,997 50,533 51,483 29 30 Deferred Credits 11,032 11,276 11,487 11,660 31 32 Total Liabilities $ 644,577 $ 653,001 $ 663,539 $ 671,207 $ 673,902 Newfoundland Power Appendix A Pro-forma Page 4 of 8 Statement of Cashflows (000s) 2001 2002 2003 2005 Cash From (Used In) Operations 1 Net Income $ 25,420 $ 21,086 $ 20,016 $ 19,669 $ 18,205 2 3 Items Not Affecting Cash: 4 Depreciation 35,963 37,405 39,178 40,782 6 Amortization of Deferred Charges 231 236 244 241 7 Changes In Non-Cash Working Capital 979 (376) (480) 672 8 58,259 57,281 58,611 59,900 9 10 Cash From (Used In) External Financing II Contributions In Aid of Construction 1,390 1,390 1,500 1,500 1,500 12 1,390 1,390 1,500 1,500 1,500 13 14 Cash From (Used In) Investing 15 Net Capital Expenditures (39,005) (43,102) (44,472) (43,806) (40,771) 17 Increase In Deferred Charges (8,539) (2,564) (3,652) (3,557) (3,996) 18 (47,544) (45,666) (48,124) (47,363) (44,767) 19 20 21 DIVIDENDS 22 Preference shares (626) (626) (626) (626) (626) 23 Common shares (18,989) (18,989) (18,989) (18,989) (18,989) 24 (19,615) (19,615) (19,615) (19,615) (19,615) 25 26 (Increase) Decrease In Debt 27 Debt, Beginning 28 Debt, Ending Newfoundland Power Appendix A Pro-forma Page 5 of 8 Rate Base (000s) 2001 2002 2003 2004 2005 1 Plant Investment $ 949,382 $ 976,519 $ 1,006,673 $ 1,035,091 1,061,497 2 3 Deduct: 4 Accumulated Depreciation 417,189 438,359 462,793 487,831 515,396 5 Contributions In Aid of Construction 19,618 19,785 20,030 20,241 20,416 6 Weather Normalization Reserve (8,752) (8,752) (8,752) (8,752) (8,752) 7 428,055 449,392 474,071 499,320 527,060 8 9 521,327 527,127 532,602 535,771 534,437 10 Add: Contributions Country Homes 300 300 300 300 300 11 12 Balance Current Year 521,627 527,427 532,902 536,071 534,737 13 14 Balance Previous Year 517,105 521,627 527,427 532,902 536,071 15 16 Average 519,366 524,527 530,164 534,486 535,404 17 18 Cash Working Capital Allowance 4,470 4,549 4,599 4,652 4,682 19 Materials And Supplies 3,677 3,677 3,677 3,677 3,677 20 21 Average Rate Base At Year End $ 527,513 $ 532,753 $ 538,440 $ 542,815 $ 543,763 Newfoundland Power Appendix A Pro-forma Page 6 of 8 Return on Rate Base Calculation (000s) 2001 2002 2003 2004 2005 Net Income 25,420 21,086 20,016 19,669 18,205 Non-Deductible Expenses (Net of Tax) 700 700 700 700 700 26,120 21,786 20,716 20,369 18,905 ADD: Interest on Long Term Debt 26,981 26,685 28,129 29,548 29,220 Other Interest 2,089 3,042 2,685 1,949 2,838 Interest Earned (1,200) (1,200) (1,200) (1,200) (1,200) 9 Interest Charged To Construction (368) (410) (425) (418) (365) 10 Amortization of Debt Discount & Expense 161 161 169 178 176 11 Amortization of Capital Stock Issue Expenses 70 70 66 66 64 12 27,733 28,348 29,424 30,123 30,733 13 14 Regulated Earnings 53,853 50,134 50,140 50,492 49,638 15 16 Average Rate Base 527,513 542,815 543,763 17 18 Rate of Return on Average 10.21% 9.30% 9.13% Rate Base Newfoundland Power Appendix A Pro-forma Page 7 of 8 Cost of Capital (000s) 2001 2002 2003 2004 2005 Earnings Applicable To Common Shares $ 24,794 $ 20,460 $ 19,390 $ 19,043 $ 17,579 Non-Deductible Expenses (Net of Tax) 700 700 700 700 700 Regulated Earnings $ 25,494 $ 21,160 $ 20,090 $ 19,743 $ 18,279 Regulated Average Common Shareholder's Equity 258,965 263,303 264,938 265,865 265,886 Regulated Rate of Return on Common Equity 9.84% 8.04% 7.58% 7.43% 6.87% Regulated Capitalization Statistics ($) Average Debt $ 316,055 $ 323,215 $ 330,510 $ 338,422 $ 343,347 Preferred Shares 9,890 9,890 9,890 9,890 9,890 Average Common Equity 258,965 263,303 264,938 265,865 265,886 $ 584,910 $ 596,408 $ 605,338 $ 614,177 $ 619,123 17 Regulated Capitalization Statistics (%) 18 19 Average Debt 54.04% 54.19% 54.60% 55.10% 55.45% 20 Preferred Shares 1.69% 1.66% 1.63% 1.61% 1.60% 21 Average Common Equity 44.15% 43.77% 43.29% 42.95% 22 100.00% 100.00% 100.00% 100.00% 100.00% Appendix A Page 8 of 8 Pro-forma Accounting Analysis Assumptions Allowed Rate of Return on Rate Base By Orders P.U. 16 (1998-99) and P.U. 36 (1998-99), the Board approved an automatic adjustment mechanism for adjusting rates based upon changes in long Canada bond yields. No adjustment from current rates is assumed in this analysis. Customer and Energy Sales Forecasts Customer and energy sales forecasts are based on economic indicators taken from the Conference Board of Canada forecast dated July 19, 2000 which was used by Newfoundland Power in preparation of its 2001 capital budget which was approved by the Board in Order No. P.U. 24 (2000- 2001). Purchased Power Purchased power is based on estimated sales less estimated power produced, and the usual allowances for line losses and Company usage. Rates charged by Newfoundland and Labrador Hydro at August 31, 2000 and approved by the Board were used to forecast purchased power expense. Escalation Factors Wage rates beyond 2001 are based on rates established in the collective agreement with unionized staff. Wage rates for managerial staff are escalated based on management's best estimate. Non-labor expenses have been escalated, in accordance with Order No. P.U. 7 (1996-97), using the GDP deflator for Canada, where appropriate. Pensions Accounting for pensions is in accordance with Order No. P.U. 17 (1987) with funding based upon actuarial valuations and expense based upon the Canadian Institute of Chartered Accountants Handbook, section 3461 in effect January 1, 2000. Interest Rates Short-term interest rates are assumed to be 6.25 per cent for 2001 and 2002, increasing by 0.025 per cent each year thereafter. Interest on long term debt is assumed to be 7.5% over the forecast period. Newfoundland Power Appendix B Pro-forma Page 1 of 7 Income Statement (000s) 2001 2002 2003 2004 2005 Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted 1 Revenue from Rates $ 351,502 $ $ 351,502 355,844 $ $ 355,844 361,059 $ - $ 361,059 363,550 S • $ 363,550 2 Purchased Power 200,371 200,371 203,602 203,602 207,371 207,371 208,867 208,867 3 Contribution 151,131 151,131 152,242 153,688 153,688 154,683 154,683 4 152,242 5 Other Revenue 2,191 3,956 6,147 2,211 5,693 7,904 6,612 8,844 2,263 7,552 9,815 2,263 8,498 10,761 6 2,232 ? Operating Expenses 49,562 500 50,062 50,086 507 50,593 513 52,206 53,250 521 53,771 54,923 528 55,451 51,693 8 Depreciation 33,346 895 34,241 35,963 1,281 37,244 1,503 38,908 39,178 1,727 40,905 40,782 1,952 42,734 9 Finance Charges 27,733 890 28,623 28,347 2,477 30,824 37,405 2,796 32,221 30,123 3,080 33,203 30,733 i,331 34,064 29,425 10 Total Expenses 114,396 4,265 118,661 4,812 123,335 5,328 5,811 110,641 2,285 112,926 122,551 127,879 126,438 132,249 11 118,523 12 Income Before Taxes 38,946 1,428 40,374 1,800 37,751 2,224 2,687 41,620 1,671 43,291 33,400 35,624 30,508 33,195 13 35,951 14 Provision for Income Taxes 17,860 658 18,518 744 16,679 872 1,052 16,200 919 17,119 13,731 14,603 12,303 13,355 15 15,935 21,086 21,856 21,072 1,352 21,021 18,205 16 Net Income 25,420 26,172 770 20,016 1,056 19,669 1,635 19,840 17 752 18 Preference Dividends 626 626 626 626 626 626 626 626 626 626 19 20 Earnings Common Shares 1,635 $ 19,214 Newfoundland Power Appendix B Pro-forma Page 2 of 7 Statement of Retained Earnings (000s) 2001 2002 2003 2004 2005 liusted Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted 1 Balance - Beginning 179,389 179,389 $ 185,194 $ 752 $ 185,946 S 186,665 $ 1,522 $ 188,187 $ 187,066 $ 2,578 $ 189,644 $ 187,120 $ 3,930 $ 191,050 2 Net Income for the Period 25,420 752 26,172 21,086 770 21,856 20,016 1,056 21,072 19,669 1,352 21,021 18,205 1,635 19,840 3 204,809 752 205,561 206,280 1,522 207,802 206,681 2,578 209,259 206,735 3,930 210,665 205,325 5,565 210,890 4 5 Dividends 6 Preference Shares 626 626 • 626 626 626 626 626 626 626 7 Common Shares 18,989 18,989 18,989 18,989 18,989 18,989 18,989 18,989 18,989 18,989 19,615 19,615 19,615 19,615 19,615 19,615 19,615 19,615 19,615 - 19,615 10 Balance - End of Period Newfoundland Power Appendix B Pro-forma Page 3 of 7 Balance Sheet (OOOs) 2001 2002 2003 2004 2005 Base Change Adjusted I§Sfi Change Adjusted Base Chanoe Adjusted Change Adius Base Change Adjusted Assets 1 Property Plant & Equipment $ 951,985 $ 24,728 $ 976,713 $ 979,072 $ 35,392 $ 1,014,464 $ 1,009,313 $ 41,517 $ 1,050,830 $ 1,037,691 $ 47,695 $ 1,085,386 $ 1,063,918 $ 53,926 $ 1,117,844 2 Less: Accumulated Depreciation 417,189 233 417,422 438,359 843 439,202 462,793 1,664 464,457 487,831 2,699 490,530 515,396 3,948 519,344 3 534,796 24,495 559,291 540,713 34,549 575,262 546,520 39,853 586,373 549,860 44,996 594,856 548,522 49,978 598,500 4 5 Current Assets 6 Accounts Receivable 35,880 35,880 36,054 36,054 37,367 - 37,367 38,382 38,382 38,660 - 38,660 7 Materials & Supplies 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4.500 8 Rate Stabilization Account 4,222 4,222 4,222 4,222 4,222 4,222 4,222 4,222 4,222 4,222 9 44,602 44,602 44,776 44,776 46,089 46,089 47,104 47,104 47,382 47,382 10 11 Corporate Income Tax Deposit 6,747 - 6,747 6,747 - 6,747 6,747 - 6,747 6,747 - 6,747 6,747 - 6,747 12 Deferred Charges 58,432 58,432 60,765 60,765 64,183 64,183 67,496 67,496 71,251 71,251 13 14 Total Assets $ 644,577 $ 24,495 $ 669,072 $ 653,001 $ 34,549 $ 687,550 $ 663,539 $ 39,853 $ 703,392 $ 671,207 $ 44,996 $ 716,203 S 673,902 S 49,978 $ 723,880 15 16 Shareholder's Equitv & Liabilities 17 18 Shareholder's Equity 19 Common Shares $ 70,321 $ $ 70,321 $ 70,321 $ $ 70,321 $ 70,321 $ $ 70,321 $ 70,321 $ $ 70,321 $ 70,321 $ $ 70,321 20 Retained Earnings 185,194 752 185,946 186,665 1,522 188,187 187,066 2,578 189,644 187,120 3,930 191,050 185,710 5,565 191,275 21 Common Shareholder's Equity 255,515 752 256,267 256,986 1,522 258,508 257,387 2,578 259,965 257,441 3,930 261,371 256,031 5,565 261,596 22 Preference Shares 9,890 9,890 9,890 9,890 9,890 9,890 9,890 9,890 9,890 9,890 23 265.405 752 266,157 266,876 1,522 268,398 267,277 2,578 269,855 267,331 3,930 271,261 265.921 5.565 271,486 24 25 Debt 320,399 23.743 344,142 326,031 33,027 359,058 334,989 37,275 372,264 341,856 41,066 382.922 344,838 44,413 389.251 26 27 Current Liabilities 28 Accounts Payable & Accrued Cliarges 47,909 47,909 49,062 49,062 49,997 49,997 50,533 50,533 51,483 51.483 29 30 Deferred Credits 10,864 10,864 11,032 11,032 11,276 11,276 11,487 11,487 11,660 11,660 31 32 Total Liabilities $ 644,577 $ 24,495 $ 669,072 $ 653,001 $ 34,549 $ 687,550 $ 663,539 $ 39,853 $ 703,392 $ 671,207 $ 44,996 $ 716,203 $ 673,902 $ 49,978 $ 723,880 Newfoundland Power Appendix B Pro-forma Page 4 of 7 Statement of Cashflows (000s) 2001 2002 2003 2004 2005 Base Change Adjusted Change Adjusted Base Change Adjusted Change Adius Base Change Adjusted Cash From (Used In) Operations I Net Income $ 25,420 $ 752 $ 26,172 $ 21,086 $ 770 $ 21,856 $ 20,016 $ 1,056 $ 21,072 $ 19,669 $ 1,352 $ 21,021 $ 18,205 $ 1,635 $ 19,840 2 .1 hems Not Affecting Cash: 4 Depreciation 35,963 1,281 37,244 1,503 38,908 39,178 1,727 40,905 40,782 1,952 42,734 6 Amortization of Deferred Charges 231 231 236 244 244 241 241 7 Changes In Non-Cash Working Capital 979 979 (376) (480) (480) 672 672 8 58,259 2,051 60,310 2,559 59,840 58,611 3,079 61,690 59,900 3,587 63.487 9 10 Cash From (Used In) External Financing 11 Contributions In Aid of Construction 1,390 1,390 1,390 1,390 1,500 1,500 1,500 1,500 1,500 12 1,390 1,390 1,390 1,390 1,500 1,500 1,500 1,500 1,500 I3 14 Cash From (Used In) Investing 15 Net Capital Expenditures (39,005) (25,390) (64,395) (43,102) (11,335) (54,437) (44,472) (6,807) (51,279) (43,806) (6,870) (50,676) (40,771) (6,934) (47,705) 17 Increase In Deferred Charges (8,539) ;__ (8,539) (2,564) (2,564) (3,652) (3,652) (3,557) •_ (3,557) (3,996) 3,996) 18 (47,544) (25,390) (72,934) (45,666) (11,335) (57,001) (48,124) (6,807) (54,931) (47,363) (6,870) (54,233) (44,767) (6,934) (51,701) 19 20 21 DIVIDENDS 22 Preference shares (626) (626) (626) (626) (626) (626) (626) (626) (626) (626) 2.1 Common shares (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) 24 (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) 25 26 (Increase) Decrease In Debt (8,687) (23,743) 27 Debt, Beginning ,712; 28 Debt, Ending $(320,399) Newfoundland Power Appendix 8 Pro-forma Page 5 ol 7 Rate Base (000s) 2001 2002 2003 2004 2005 Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted 1 Plant Investment $ 949,382 $ 24,728 $ 974,110 $ 976,519 $ 35,392 $ 1,011,911 $ 1,006,673 $ 41,517 $ 1,048,190 $ 1,035,091 $ 47,695 $ 1,082,786 $ 1,061,497 $ 53,926 $ 1,115,423 3 Deduct: 4 Accumulated Depreciation 417,189 233 417,422 438,359 843 439,202 462,793 1,664 464,457 487,831 2,699 490,530 515,396 3,948 519,344 5 Contributions In Aid of Construction 19,618 19,618 19,785 19,785 20,030 20,030 20,241 - 20,241 20,416 20,416 6 Weather Normalization Reserve (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) 7 428,055 233 428,288 449,392 843 450,235 474,071 1,664 475,735 499,320 2,699 502,019 527,060 3,948 531,008 8 9 521,327 24,495 545,822 527,127 34,549 561,676 532,602 39,853 572,455 535,771 44,996 580,767 534,437 49,978 584,415 10 Add: Contributions Country Homes 300 . 300 300 . 300 300 300 300 . 300 300 300 11 12 Balance Current Year 521,627 24,495 546,122 527,427 34,549 561,976 532,902 39,853 572,755 536,071 44,996 581,067 534,737 49,978 584,715 14 Balance Previous Year 517,105 517,105 521,627 24,495 546,122 527,427 34,549 561,976 532,902 39,853 572,755 536,071 44,996 581,067 15 16 Average 519,366 12,248 531,614 524,527 29,522 554,049 530,164 37,201 567,365 534,486 42,425 576,911 535,404 47,487 582,891 18 Cash Working Capital Allowance 4,470 24 4,494 4,549 20 4,569 4,599 21 4,620 4,652 24 4,676 4,682 27 4,709 19 Materials And Supplies 3,677 3,677 3,677 - 3,677 3,677 3,677 3,677 3,677 3,677 3,677 20 21 Average Rate Base At Year End $ 527,513 $ 12,272 $ 539,785 $ 532,753 $ 29,542 $ 562,295 $ 538,440 $ 37,222 $ 575,662 $ 542,815 $ 42,449 $ 585,264 $ 543,763 $47,514 $ 591,277 Newfoundland Power Appendix B Pro-forma Page 6 ol 7 Return on Rate Base Calculation (000s) 2001 2002 2003 2004 2005 Base Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted 1 Net Income $ 25,420 $ 752 $ 26,172 $ 21,086 $ 770 $ 21,856 20,016 $ 1,056 $ 21,072 $ 19,669 % 1,352 $ 21,021 $ 18,205 $ 1,635 $ 19.840 2 Non-Deductible Expenses (Net of Tax) 700 - 700 700 - 700 700 - 700 700 700 700 700 3 26,120 752 26,872 21,786 770 22,556 20,716 1,056 21,772 20,369 1,352 21,721 18,905 1,635 20.540 5 ADD: 6 Interest on Long Term Debt 26,981 • 26,981 26,685 - 26,685 28,129 28,129 29,548 29,548 29,220 29.220 7 Other Interest 2,089 890 2,979 3,042 2,477 5,519 2,685 2,796 5,481 1,949 3,080 5,029 2,838 3,331 6,169 8 Interest Earned (1,200) (1,200) (1,200) - (1,200) (1,200) (1,200) (1.200) - (1.200) (1,200) - (1,200) 9 Interest Charged To Construction (368) - (368) (410) - (410) (425) (425) (418) - (418) (365) - (365) 10 Amortization of Debt Discount & Expense 161 161 161 - 161 169 169 178 178 176 - 176 11 Amortization of Capital Stock Issue Expenses 70 70 70 -_ 70 66 66 66 66 64 64 12 27,733 890 28,623 28,348 2,477 30,825 29,424 2,796 32,220 30,123 3,080 33,203 30,733 3,331 34,064 13 14 Regulated Earnings 53,853 1,642 55,495 _ 50,134 ..._ 3,247 . 53,381 50,140 3,852 53,992 50,492 4,432 54,924 49,638 4,966 54,604 15 527,513 12,272 16 Average Rate Base 539,785 J32,753 29,542 562,295 538,440 37,222 575,662 542,815 42,449 585,264 543,763 47,514 591,277 17 10.21 % 10.28% 9.41% 9.49% 9.31% 9.38% 9.30% 9.38% 9.13% 18 Rate of Return on Average 9.23% Rate Base Newfoundland Power Appendix B Pro-forma Page 7 ol7 Cost of Capital (000s) 2001 2002 2003 2004 2005 Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted 1 Earnings Applicable To Common Shares $ 24,794 $ 752 $ 25,546 $ 20,460 $ 770 $ 21,230 $ 19,390 $ 1,056 $ 20,446 $ 19,043 $ 1,352 $ 20,395 $ 17,579 $ 1,635 $ 19,214 2 Non-Deductible Expenses (Net of Tax) 700 700 700 700 700 700 700 700 700 700 3 4 Regulated Earnings $ 25,494 $ 752 $ 26,246 $ 21,160 $ 770 $ 21,930 $ 20,090 $ 1,056 $ 21,146 $ 19,743 $ 1,352 $ 21,095 $ 18,279 $ 1,635 $ 19,914 5 6 Regulated Average Common Shareholder's Equity 258,965 377 259,342 263,303 1,138 264,441 264,938 2,052 266,990 265,865 3,256 269,121 265,886 4,751 270,637 7 8 Regulated Rate of Return on Common Equity 9.84% 10.12% 8.04% 8.29% 7.58% 7.92% 7.43% 7.84% 6.87% 7.36% 9 10 Regulated Capitalization Statistics (S) 11 12 Average Debt $ 316,055 $ 11,872 $ 327,927 $ 323,215 $ 16,514 $ 339,729 $ 330,510 $ 18,638 $ 349,148 $ 338,422 $ 20,533 $ 358,955 $ 343,347 $ 22,207 $ 365.554 13 Preferred Shares 9,890 - 9,890 9,890 - 9,890 9,890 - 9,890 9,890 - 9,890 9,890 - 9,890 14 Average Common Equity 258,965 377 259,342 263,303 1,138 264,441 264,938 2,052 266,990 265,865 3,256 269,121 265,886 4,751 270,637 15 $ 584,910 $ 12,249 $ 597,159 $ 596,408 $ 17,652 $ 614,060 $ 605,338 $ 20,690 $ 626,028 $ 614,177 $ 23,789 $ 637,966 $ 619,123 $ 26,958 $ 646,081 16 17 Regulated Capitalization Statistics <%) 18 15 Average Debt 54.04% 0.87% 54.91% 54.19% 1.13% 55.33% 54.60% 1.17% 55.77% 55.10% 1.16% 56.27% 55.45% 1.13% 56.58% 20 Preferred Shares 1.69% -0.03% 1.66% 1.66% -0.05% 1.61% 1.63% -0.05% 1.58% 1.61% -0.06% 1.55% 1.60% -0.07% 1.53% 21 Average Common Equity 44.27% -0.84% 43.43% 44.15% -1.08% 43.06% 43,77% -1.12% 42.65% 43.29% -1.10% 42.18% 42.95% -1,06% 41.89% 22 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% Newfoundland Power Appendix C Pro-forma Page 1 of 7 Income Statement (000s) 2001 2002 2003 2004 2005 Base Adjusted Base Chanoe Change Adjusted Base Change Adjusted 1 Revenue from Rates $ 347,931 $ 347,931 $ 351,502 $ 351,502 $ 365,844 $ - $ 355,844 $ 361,059 $ $ 361,059 $ 363,550 $ - $ 363,550 2 Purchased Power 197,861 197,861 200,371 200,371 203,602 203,602 207,371 _ 207,371 208,867 208,867 3 Contribution 150,070 150,070 151,131 151,131 152,242 152,242 153,688 153,688 154,683 154,683 4 5 Other Revenue 2,191 1,582 3,773 2,211 3,305 5,516 2,232 5,012 7,244 2,263 6,747 9,010 2,263 8,499 10,762 6 7 Operating Expenses 49,562 500 50,062 50,086 507 50,593 51,693 513 52,206 53,250 521 53,771 54,923 528 55,451 8 Depreciation 33,346 397 33,743 35,963 783 36,746 37,405 1,171 38,576 39,178 1,561 40,739 40,782 1,952 42,734 31,770 34,358 9 Finance Charges 27,733 419 28,152 28,347 1,618 29,965 29,425 2,345 30,123 3,015 33,138 30,733 3,625 10 Total Expenses 110,641 111,957 117,304 118,523 4,029 122,551 5,097 126,438 6,105 1,316 114,396 2,908 122,552 132,543 11 127,648 12 Income Before Taxes 41,620 41,886 39,343 35,951 983 1,650 30,508 2,394 266 38,946 397 36,934 32,902 13 35,050 14 Provision for Income Taxes 16,200 16,406 18,103 16,935 458 685 12,303 965 206 17,860 243 16,393 13,268 15 14,416 16 Net Income 25,420 60 25,480 21,086 154 21,240 20,016 525 20,541 965 20,634 18,205 1,429 19,634 17 18 Preference Dividends 626 626 626 626 626 626 626 626 19 20 Earnings Common Shares Newfoundland Power Appendix C Pro-forma Page 2 of 7 Statement of Retained Earnings (000s) 2001 2002 2003 2004 2005 Base C_hanae Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted 1 Balance - Beginning $ 179,389 $ $ 179,389 $ 185,194 $ 60 $ 185,254 $ 186,665 $ 214 $ 186,879 $ 187,066 $ 739 $ 187,805 $ 187,120 $ 1,704 $ 188,824 2 Net Income for the Period 25,420 60 25,480 21,086 154 21,240 20,016 525 20,541 19,669 965 20,634 18,205 1,429 19,634 3 204,809 60 204,869 206,280 214 206,494 206,681 739 207,420 206,735 1,704 208,439 205,325 3,133 208,458 S Dividends 6 Preference Shares 626 626 626 . 626 626 . 626 626 626 626 626 7 Common Shares 18,989 . 18,989 18,989 18,989 18,989 18,989 18,989 18,989 18,989 18,989 8 19,615 19,615 19,615 • 19,615 19,615 - 19,615 19,615 19,615 19,615 19,615 Q 10 Balance - End of Period $ 185,194 $ 60 $ 185,254 $ 186,665 $ 214 $ 186,879 $ 187,066 $ 739 $ 187,805 $ 187,120 $ 1,704 $ 188,824 $ 185,710 $ 3,133 $ 188,843 Newfoundland Power Appendix C Pro-forma Page 3 ol 7 Balance Sheet (000s) 2001 2002 2003 2004 2005 Base Change Adjusted Base Change Adjusted Change Adjusted Base Base Chanoe Adjusted Assets 1 Property Plant & Equipment 951,985 $ 10,971 $ 962,956 $ 979,072 $ 21,635 $ 1,000,707 1,009,313 $ 32,345 $ 1,041,658 $ 1,037,69! $ 43,110 $ 1,080,801 $ 1,063,918 $ 53,926 $ 1,117,844 Less: Accumulated Depreciation 417,189 (265) 416,924 438,359 (153) 438,206 462,793 336 463,129 487,831 1,205 489,036 515,396 2,454 517,850 534,796 11,236 546,032 540,713 21,788 562,501 546,520 32,009 578,529 549,860 41,905 591,765 548,522 51,472 599,994 Current Assets Accounts Receivable 35,880 36,054 37,367 37,367 38,382 38,382 38,660 38,660 Materials & Supplies 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4.500 8 Rate Stabilization Account 4,222 4,222 4,222 4,222 4,222 4,222 4,222 4,222 9 44,602 44,602 44,776 46,089 46,089 47,104 47,104 47,382 47,382 10 11 Corporate Income Tax Deposit 6,747 6,747 6,747 6,747 6,747 6,747 6,747 6,747 6,747 12 Deferred Charges 58,432 58,432 60,765 60,765 64,183 64,183 67,496 67,496 71,251 13 14 Total Assets 644,577 $ 11,236 $ 655,813 $ 653,001 $ 21,788 $ 674,789 $ 663,539 $ 32,009 $ 695.S48 $ 671,207 $ 41,905 $ 713,112 $ 673,902 $ 51,472 $ 725,374 15 16 Shareholder's Equity & Liabilities 17 18 Shareholder's Equity 19 Common Shares 70,321 $ $ 70,321 $ 70,321 $ 70,321 $ 70,321 $ 70,321 70,321 $ $ 70,321 $ 70,321 $ 70.321 20 Retained Earnings 185,194 60 185,254 186,665 214 186,879 187,066 739 187,805 187,120 1,704 188,824 185,710 _ 3,133 188,843 21 Common Shareholder's Equity 255,515 60 255,575 256,986 214 257,200 257,387 739 258,126 257,441 1,704 259,145 256,031 3,133 259,164 22 Preference Shares 9,890 9,890 9,890 9,890 9,890 9,890 9,890 9,890 9,890 9.890 23 265,405 60 265,465 266,876 214 267,090 267,277 739 268,016 267,331 1,704 269,035 265,921 3,133 269,054 24 25 Debt 320,399 1,176 331,575 326,031 21,574 347,605 334,989 31,270 366,259 341,856 40,201 382,057 344.838 48,339 393,177 26 27 Current Liabilities 28 Accounts Payable & Accrued Charges 47,909 47,909 49,062 49,062 49,997 50,533 50,533 51,483 51,483 29 30 Deferred Credits 10,864 10,864 11,032 11,032 1,276 11,487 11,487 11,660 - 11,660 31 32 Total Liabilities $ 644,577 $ 11,236 $ 655,813 $ 653,001 $ 21,788 $ 674,789 $ 663,539 $ 32,009 $ 695,548 S 671,207 $ 41,905 $ 713,112 $ 673,902 $ 51,472 $ 725,374 Newfoundland Power Appendix C Pro-forma Page 4 of 7 Statement of Cashflows (000s) 2001 2002 2003 2004 2005 Base Chanoe Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted Cash From (Used In) Operations I Net Income $ 25,420 $ 60 $ 25,480 $ 21,086 $ 154 $ 21,240 $ 20,016 $ 525 $ 20,541 $ 19,669 $ 965 $ 20,634 $ 18,205 $ 1,429 $ 19,634 2 3 Items Not Affecting Cash: 4 Depreciation 35,963 783 36,746 1,561 40,739 40,782 1,952 42,734 6 Amortization of Deferred Charges 231 231 244 241 - 241 7 Changes In Non-Cash Working Capital 979 979 (480) 672 672 8 58,259 937 59,196 2,526 61,137 59,900 3,381 63,281 9 10 Cash From (Used In) External Financing 11 Contributions In Aid of Construction 1,390 1,390 1,500 1,500 1,500 1,500 1,500 1,500 12 1,390 1,390 1,500 1,500 1,500 1,500 1,500 1,500 13 14 Cash From (Used In) Investing 15 Net Capital Expenditures (39,005) (11,633) (50,638) (43,102) (11,335) (54,437) (44,472) (11,392) (55,864) (43,806) (11,457) (55,263) (40,771) (11,519) (52,290) 17 Increase In Deferred Charges (8,539) ;__ (8,539) (2,564) ;__ (2,564) (3,652) -_ (3,652) (3,557) -__ (3,557) (3,996) •__ (3,996) 18 (47,544) (11,633) (59,177) (45,666) (11,335) (57,001) (48,124) (11,392) (59,516) (47,363) (11,457) (58,820) (44,767) (11,519) (56,286) 19 20 21 DIVIDENDS 22 Preference shares (626) (626) (626) (626) (626) (626) (626) (626) (626) (626) 23 Common shares (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) 24 (19.615) (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) 25 26 (Increase) Decrease In Debt 27 Debt, Beginning 28 Debt, Ending Newfoundland Power Appendix C Pro-torma Page 5 of 7 Rate Base (000s) 2001 2002 2003 2004 2005 Base Change Adlusted Base Change Adjusted Base Change Adjusted Base Change ousted Base Change Adjusted 1 Plant Investment $ 949,382 $ 10,971 $ 960,353 $ 976,519 $ 21,635 $ 998,154 $ 1,006,673 $ 32,345 $ 1,039,018 $ 1,035,091 $ 43,110 $ 1,078,201 $ 1,061,497 $ 53,926 $ 1,115,423 2 3 Deduct: 4 Accumulated Depreciation 417,189 (265) 416,924 438,359 (153) 438,206 462,793 336 463,129 487,831 1,205 489,036 515,396 2,454 517,850 5 Contributions In Aid of Construction 19,618 19,618 19,785 19,785 20,030 20,030 20,241 20,241 20,416 20,416 6 Weather Normalization Reserve (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) 7 428,055 (265) 427,790 449,392 (153) 449,239 474,071 336 474,407 499,320 1,205 500,525 527,060 2,454 529,514 8 9 521,327 11,236 532,563 527,127 21,788 548,915 532,602 32,009 564,611 535,771 41,905 577,676 534,437 51,472 585,909 10 Add: Contributions Country Homes 300 . 300 300 . 300 300 _ 300 300 - 300 300 300 11 12 Balance Current Year 521,627 11,236 532,863 527,427 21,788 549,215 532,902 32,009 564,911 536,071 41,905 577,976 534,737 51,472 586,209 14 Balance Previous Year 517,105 . 517,105 521,627 11,236 532,863 527,427 21,788 549,215 532,902 32,009 564,911 536,071 41,905 577,976 15 16 Average 519,366 5,618 524,984 524,527 16,512 541,039 530,164 26,899 557,063 534,486 36,957 571,443 535,404 46,689 582,093 18 Cash Working Capital Allowance 4,470 12 4,482 4,549 13 4,562 4,599 17 4,616 4,652 21 4,673 4,682 25 4,707 19 Materials And Supplies 3,677 3,677 3,677 3,677 3,677 3,677 3,677 3,677 3,677 3,677 20 21 Average Rate Base At Year End $ 527,513 :S 5,630 $ 533,143 $ 532,753 $ 16,525 $ 549,278 $ 538,440 $ 26,916 $ 565,356 $ 542,815 $ 36,978 $ 579,793 $ 543,763 $46,714 $ 590,477 Newfoundland Power Appendix C Pro-forma Page 6 ol 7 Return on Rate Base Calculation (000s) 2001 2002 2003 2004 2005 Base C.:hanqe Adjusted Base Chanoe Adjusted Base Chanoe Adjusted Base Change Adjusted Base Chanoe Adjusted I Net Income $ 25,420 $ 60 $ 25,480 $ 21,086 $ 154 $ 21,240 $ 20,016 $ 525 $ 20,541 $ 19,669 $ 965 $ 20,634 $ 18,205 $ 1,429 $ 19,634 2 Non-Deductible Expenses (Net of Tax) 700 700 700 700 700 700 700 700 700 700 3 26,120 60 26,180 21,786 154 21,940 20,716 525 21,241 20,369 965 21,334 18,905 1,429 20,334 5 ADD: 6 Interest on Long Term Debt 26,981 - 26,981 26,685 . 26,685 28,129 . 28,129 29,548 29,548 29,220 29,220 7 Other Interest 2,089 419 2,508 3,042 1,618 4,660 2,685 2,345 5,030 1,949 3,015 4,964 2,838 3,625 6,463 8 Interest Earned (1,200) . (1,200) (1,200) (1,200) (1,200) - (1,200) (1,200) - (1,200) (1,200) - (1.200) 9 Interest Charged To Construction (368) - (368) (410) - (410) (425) (425) (418) (418) (365) (365) 10 Amortization of Debt Discount & Expense 161 . 161 161 - 161 169 - 169 178 178 176 176 11 Amortization of Capital Stock Issue Expenses 70 70 70 70 66 66 66 66 64 64 12 27,733 419 28,152 28,348 1,618 29,966 29,424 2,345 31,769 30,123 3,015 33,138 30,733 3,625 34,358 14 Regulated Earnings 53,853 479 54,332 50,134 1,772 51,906 50,140 2,870 53,010 50,492 3,980 54,472 49,638 5,054 54,692 15 16 Average Rate Base 527,513 5,630 533,143 532,753 16,525 549,278 538,440 26,916 565,356 542,815 36,978 579,793 543,763 46,714 590.477 17 18 Rate of Return on Average 10.21 % 10.19% 9.41% 9.45% 9.31% 9.38% 9.30% 9.40% 9.13% 9.26% Rate Base Newfoundland Power Appendix C Pro-lorma Page 7 of 7 Cost ol Capital (000s) 2001 2002 2003 2004 2005 Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted 1 Earnings Applicable To Common Shares $ 24,794 $ 60 $ 24,854 $ 20,460 $ 154 $ 20,614 $ 19,390 $ 525 $ 19,915 $ 19,043 $ 965 $ 20,008 $ 17,579 $ 1,429 $ 19,008 2 Non-Deductible Expenses (Net of Tax) 700 •___ 700 700 700 700 700 700 700 700 ;_ 700 3 4 Regulated Earnings $ 25,494 $ 60 $ 25,554 $ 21,160 $ 154 $ 21,314 $ 20,090 $ 525 $ 20,615 $ 19,743 $ 965 $ 20,708 $ 18,279 $ 1,429 $ 19,708 5 6 Regulated Average Common Shareholder's Equity 258,965 31 258,996 263,303 138 263,441 264,938 478 265,416 265,865 1,224 267,089 265,886 2,422 268,308 7 8 Regulated Rate of Return on Common Equity 9.84% 9.87% 8.04% 8.09% 7.58% 7.77% 7.43% 7.75% 6.87% 7.35% 9 10 Regulated Capitalization Statistics ($) II 12 Average Debt 316,055 $ 5,588 $ 321,643 $ 323,215 $ 10,787 $ 334,002 $ 330,510 $ 15,635 $ 346,145 $ 338,422 $ 20,101 $ 358,523 $ 343,347 $ 24,170 $ 367,517 13 Preferred Shares 9,890 - 9,890 9,890 - 9,890 9,890 - 9,890 9,890 - 9,890 9,890 - 9,890 14 Average Common Equity 258,965 31 258,996 263,303 138 263,441 264,938 478 265,416 . 265,865 1,224 267,089 265,886 2,422 268,308 15 $ 584,910 $ 5,619 $ 590,529 $ 596,408 $ 10,925 $ 607,333 S 605,338 $ 16,113 $ 621,451 $ 614,177 $ 21,325 $ 635,502 $ 619,123 $ 26,592 $ 645,715 16 17 Regulated Capitalization Statistics (%) 18 19 Average Debt 54.04% 0.44% 54.47% 54.19% 0.80% 54.99% 54.60% 1.10% 55.70% 55.10% 1.31% 56.41% 55.45% 1.47% 56.92% 20 Preferred Shares 1.69% -0.02% 1.67% 1.66% -0.03% 1.63% 1.63% -0.04% 1.59% 1.61% -0.05% 1.56% 1.60% -0.07% 1.53% 21 Average Common Equity 44.27% -0.42% 43.86% 44.15% -0.77% 43.38% 43.77% -1.06% 42.71% 43.29% -1.26% 42.03% 42.95% -1.39% 41.55% 22 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% Newfoundland Power Appendix D Pro-forma Page 1 of 7 Income Statement (000s) 2001 2002 2003 2004 2005 Change Adjusted Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted 1 Revenue from Rates 2 Purchased Power 3 Contribution 4 5 Other Revenue 2,191 3,400 5,591 2,211 4,869 7,080 2,232 5,663 7,895 2,263 6,476 8,739 2,263 7,293 9,556 6 7 Operating Expenses 49,562 425 49,987 50,086 431 50,517 51,693 436 52,129 53,250 443 53,693 54,923 448 55,371 8 Depreciation 33,346 779 34,125 35,963 1,119 37,082 37,405 1,315 38,720 39,178 1,512 40,690 40,782 1,711 42,493 9 Finance Charges 27,733 776 28,509 28,347 2,173 30,520 29,425 2,462 31,887 30,123 2,722 32,845 30,733 2,954 33,687 10 Total Expenses 110,641 3,723 4,213 5,113 4,677 127,228 126,438 131,551 11 1,980 112,621 114,396 118,119 118,523 122,736 122,551 12 Income Before Taxes 1,146 1,450 2,180 1,799 32,688 13 1,420 43,040' 38,946 40,092 35,951 37,401 33,400 35,199 30,508 14 Provision for Income Taxes 535 605 861 786 16,986 17,860 18,395 15,935 16,540 13,731 712 14,443 12,303 13,164 15 16 Net Income 634 26,054 21,086 611 21,697 20,016 845 20,861 1,087 20,756 18,205 1,319 19,524 19,669 17 18 Preference Dividends 626 626 626 626 626 626 626 626 19 20 Earnings Common Shares Newfoundland Power Appendix D Pro-forma Page 2 of 7 Statement of Retained Earnings (000s) 2001 2002 2003 2004 2005 Base C Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted 1 Balance - Beginning $ 179,389 $ $ 179,389 $ 185,194 $ 634 $ 185,828 $ 186,665 $ 1,245 $ 187,910 $ 187,066 $ 2,090 $ 189,156 $ 187,120 $ 3,177 $ 190,297 2 Net Income for the Period 25,420 634 26,054 21,086 611 21,697 20,016 845 20,861 19,669 1,087 20,756 18,205 1,319 19,524 3 204,809 634 205,443 206,280 1,245 207,525 206,681 2,090 208,771 206,735 3,177 209,912 205,325 4,496 209,821 5 Dividends 6 Preference Shares 626 626 626 - 626 626 - 626 626 - 626 626 626 7 Common Shares 18,989 18,989 18,989 18,989 18,989 18,989 18,989 18,989 18,989 18,989 8 19,615 19,615 19,615 19,615 19,615 - 19,615 19,615 19,615 19,615 19,615 g 10 Balance - End of Period $ 185,194 $ 634 $ 185,828 $ 186,665 $ 1,245 $ 187,910 $ 187,066 $ 2,090 $ 189,156 $ 187,120 $ 3,177 $ 190,297 S 185,710 $ 4,496 $ 190,206 Newfoundland Power Appendix D Pro-forma Page 3 ol 7 Balance Sheet (000s) 2001 2002 2003 2004 2005 Base Change Adjusted Change Adjusted Change Adjusted Base Change Adjusted Base Change Adjusted Assets 1 Property Plant & Equipment 951,985 $ 21,511 $ 973,496 $ 979,072 $ 30,922 $ 1,009,994 $ 1,009,313 $ 36,328 $ 1,045,641 $ 1,037,691 $ 41,780 $ 1,079,471 1,063,918 $47,275 $1,111,193 2 Less: Accumulated Depreciation 417,189 m 417,377 438,359 708 439,067 462,793 1,415 464,208 487,831 2,310 490,141 515,396 3,395 518,791 3 534,796 21,323 556,119 540,713 30,214 570,927 546,520 34,913 581,433 549,860 39,470 589,330 548,522 43,880 592,402 5 Current Assets 6 Accounts Receivable 35,880 35,880 36,054 37,367 37,367 38,382 38,382 38,660 38.660 7 Materials & Supplies 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4.500 8 Rate Stabilization Account 4,222 4,222 4,222 4,222 4,222 4,222 4,222 4,222 4,222 9 44.602 44,602 44,776 46,089 46,089 47,104 47,104 47,382 47,382 10 11 Corporate Income Tax Deposit 6,747 6,747 6,747 6,747 6,747 6,747 6,747 6,747 6,747 6,747 12 Deferred Charges 58,432 58,432 60,765 60,765 64,183 64,183 67,496 67,496 71,251 71,251 13 14 Total Assets $ 644,577 $ 21,323 665,900 653,001 $ 30,214 683,215 $ 663,539 $ 34,913 $ 698,452 $ 671,207 $ 39,470 710,677 $ 673,902 $ 43,8 $ 717,782 15 16 Shareholder's Equity & Liabilities 17 18 Shareholder's Equity 19 Common Shares $ 70,321 $ $ 70,321 $ 70,321 $ 70,321 $ 70,321 $ $ 70,321 70,321 $ $ 70,321 70,321 $ $ 70,321 20 Retained Earnings 185,194 634 185,828 186,665 1,245 187,910 187,066 2,090 189,156 187,120 3,177 190,297 185,710 4,496 190,206 21 Common Shareholder's Equity 255,515 634 256,149 256,986 1,245 258,231 257,387 2,090 259,477 257,441 3,177 260,618 256,031 4,496 260,527 22 Preference Shares 9,890 9,890 9,890 9,890 9,890 •__ 9,890 9,890 9,890 9,890 9,890 23 265,405 634 266,039 266,876 1,245 268,121 267,277 2,090 269,367 267,331 3,177 270,508 265,921 4,496 270,417 24 25 Debt 320,399 20,689 341,088 326,031 28,969 355,000 334,989 32,823 367,812 341,856 36,293 378,149 344,838 39,384 384,222 26 27 Current Liabilities 28 Accounts Payable & Accrued Charges 47,909 47,909 49,997 50,533 50,533 51,483 51,483 29 30 Deferred Credits 10,864 - 10,864 11,276 11,487 11,487 11,660 11,660 .11 32 Total Liabilities 644,577 $ 21,323 $ 665,900 $ 653,001 $ 30,214 $ 683,215 663,539 $ 34,913 $ 698,452 $ 671,207 $ 39,470 $ 710,677 $ 673,902 $ 43,880 $ 717,782 Newfoundland Power Appendix D Pro-forma Page 4 of 7 Statement of Cashflows (000s) 2001 2002 2003 2004 2005 Adjusted Base Change Adjusted hanae Adlusted Base Change Adjusted Cash From (Used In) Operations Net Income $ 25,420 $ 634 $ 26,054 $ 21,086 $ 611 $ 21,697 $ 20,016 $ 845 $ 20,861 $ 19,669 $ 1,087 $ 20,756 $ 18,205 $ 1,319 $ 19,524 Items Not Affecting Cash: Depreciation 779 35,963 1,119 37,082 1,512 40,690 40,782 1,711 42,493 Amortization of Deferred Charges 231 231 244 241 241 Changes In Non-Cash Working Capital 979 979 672 672 1,413 58,259 1,730 59,989 59,900 3,030 62,930 10 Cash From (Used In) External Financing 11 Contributions In Aid of Construction 1,390 1,390 1,390 1,390 1,500 1,500 12 1,390 1,390 1,390 1,390 1,500 ,500 1,500 1,500 13 14 Cash From (Used In) Investing 15 Net Capital Expenditures (39,005) (22.102) (61,107) (43.102) (10,010) (53,112) (44,472) (6,014) (50,486) (43,806) (6,069) (49,875) (40,771) (6.121) (46.892) 17 Increase In Deferred Charges (8,539) ,539) (2,564) -_ (2,564) (3,652) -__ (3,652) (3,557) (3,557) (3,996) ^_ (3,996) 18 (47,544) (22,102) (69,646) (45,666) (10,010) (55,676) (48,124) (6,014) (54,138) (47,363) (6,069) (53,432) (44,767) (6,121) (50,888) 19 20 21 DIVIDENDS 22 Preference shares (626) (626) (626) (626) (626) (626) (626) (626) (626) (626) 23 Common shares (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) (18,989) 24 (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) (19,615) 25 26 (Increase) Decrease In Debt (2,982) (3,091) (6,073) 27 Debt, Beginning ,341,856) (36.293) (378,149) 28 Debt, Ending $(344,838) $ (39,384) $ (384,222) Newfoundland Power Appendix D Pro-forma Page 5 ol7 Rate Base (000s) 2001 2002 2003 2004 2005 Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted 1 Plant Investment $ 949,382 $ 21,511 $ 970,893 $ 976,519 $ 30,922 $ 1,007,441 $ 1,006,673 $ 36,328 $ 1,043,001 $ 1,035,091 $ 41,780 $ 1,076,871 $ 1,061,497 $ 47,275 $ 1,108,772 3 Deduct: 4 Accumulated Depreciation 417,189 188 417,377 438,359 708 439,067 462,793 1,415 464,208 487,831 2,310 490,141 515,396 3,395 518,791 5 Contributions In Aid of Construction 19,618 19,618 19,785 19,785 20,030 20,030 20,241 20,241 20,416 20,416 6 Weather Normalization Reserve (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) (8,752) 7 428,055 188 428,243 449,392 708 450,100 474,071 1,415 475,486 499,320 2,310 501,630 527,060 3,395 530,455 8 i) 521,327 21,323 542,650 527,127 30,214 557,341 532,602 34,913 567,515 535,771 39,470 575,241 534,437 43,880 578.317 10 Add: Contributions Country Homes 300 300 300 300 300 300 300 300 300 300 11 12 Balance Current Year 521,627 21,323 542,950 527,427 30,214 557,641 532,902 34,913 567,815 536,071 39,470 575,541 534,737 43,880 578,617 14 Balance Previous Year 517,105 517,105 521,627 21,323 542,950 527,427 30,214 557,641 532,902 34,913 567,815 536,071 39,470 575,541 15 16 Average 519,366 10,662 530,028 524,527 25,769 550,296 530,164 32,564 562,728 534,486 37,192 571,678 535,404 41,675 577,079 18 Cash Working Capital Allowance 4,470 21 4,491 4,549 16 4,565 4,599 18 4,617 4,652 20 4,672 4,682 22 4,704 19 Materials And Supplies 3,677 3,677 3,677 3,677 3,677 3,677 3,677 3,677 3,677 3,677 20 21 Average Rate Base At Year End $ 527,513 $ 10,683 $ 538,196 $ 532,753 :$ 25,785 $ 558,538 $ 538,440 S 32,582 $ 571,022 $ 542,815 $ 37,212 $ 580,027 $ 543,763 $ 41,697 $ 585,460 Newfoundland Power Appendix D Pro-forma Page 6 o( 7 Return on Rate Base Calculation (000s) 2001 2002 2003 2004 2005 Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted Base Change Adjusted I Net Income $ 25,420 $ 634 $ 26,054 $ 21,086 $ 611 $ 21,697 $ 20,016 $ 845 $ 20,861 $ 19,669 $ 1,087 $ 20,756 $ 18,205 $ 1,319 $ 19,524 I Non-Deductible Expenses (Net of Tax) 700 700 700 700 700 700 700 700 700 700 3 26,120 634 26,754 21,786 611 22,397 20,716 845 21,561 20,369 1,087 21,456 18,905 1,319 20.224 4 5 ADD: 6 Interest on Long Term Debt 26,981 26,981 26,685 26,685 28,129 28,129 29,548 29,548 29,220 29,220 7 Other Interest 2,089 776 2,865 3,042 2,173 5,215 2,685 2,462 5,147 1,949 2,722 4,671 2,838 2,954 5,792 8 interest Earned (1,200) (1,200) (1,200) (1,200) (1,200) (1,200) (1,200) (1,200) (1,200) (1.200) 9 Interest Charged To Construction (368) (368) (410) (410) (425) (425) (418) (418) (365) (365) 10 Amortization of Debt Discount & Expense 161 161 161 161 169 169 178 178 176 176 : I1 Amortization of Capital Stock Issue Expenses 70 70 70 70 66 66 66 66 64 64 12 27,733 776 28,509 28,348 2,173 30,521 29,424 2,462 31,886 30,123 2,722 32,845 30,733 2,954 33,687 13 14 Regulated Earnings 53,853 1,410 55,263 50,134 2,784 52,918 50,140 3,307 53,447 50,492 3,809 54,301 49,638 4,273 53,911 15 16 Average Rate Base 527,513 10,683 538,196 532,753 25,785 558,538 538,440 32,582 571,022 542,815 37,212 580,027 543,763 41,697 585,460 17 9.41% 9.47% 9.36% 9.21% 18 Rate of Return on Average 10.21 % 10.27% 9.31% 9.30% 9.36% 9.13% Rate Base Newfoundland Power Appendix 0 Pro-forma Page 7 til 7 Cost of Capital (000s) 2001 2002 2003 2004 2005 Base Change Adjusted Base Change Adjusted Base Change Adjusted Change Adjusted Base Change Adjusted 1 Earnings Applicable To Common Shares $ 24,794 $ 634 $ 25,428 $ 20,460 $ 611 $ 21,071 $ 19,390 $ 845 $ 20,235 $ 19,043 $ 1,087 $ 20,130 $ 17,579 $ 1,319 $ 18,898 2 Non-Deductible Expenses (Net of Tax) 700 - 700 700 •__ 700 700 ;_ 700 700 700 700 700 3 4 Regulated Earnings $ 25,494 $ 634 $ 26,128 $ 21,160 $ 611 $ 21,771 $ 20,090 $ 845 $ 20,935 $ 19,743 $ 1,087 $ 20,830 $ 18,279 $ 1,319 $ 19,598 5 6 Regulated Average Common Shareholder's Equity 258,965 318 259,283 263,303 941 264,244 264,938 1,669 266,607 265,865 2,636 268,501 265,886 3,840 269,726 7 8 Regulated Rate of Return on Common Equity 9.84% 8.04% 8.24% 7.58% 7.85% 7.43% 7.76% 6.87% 7.27% 9 10 Regulated Capitalization Statistics ($> 11 12 Average Debt 316,055 $ 10,344 $ 326,399 $ 323,215 $ 14,484 $ 337,699 $ 330,510 $ 16,412 $ 346,922 338,422 $ 18,147 $ 356,569 $ 343,347 $ 19,692 $ 363,039 13 Preferred Shares 9,890 - 9,890 9,890 - 9,890 9,890 - 9,890 9,890 - 9,890 9,890 • 9,890 14 Average Common Equity 258,965 318 259,283 263,303 941 264,244 264,938 1,669 266,607 265,865 __2J636 268,501 265,886 3,840 269,726 15 $ 584,910 $ 10,662 $ 595,572 $ 596,408 $ 15,425 $ 611,833 $ 605,338 $ 18,081 $ 623,419 $ 614,177 $ 20,783 $ 634,960 $ 619,123 $ 23,532 $ 642,655 16 17 Regulated Capitalization Statistics 1%) 18 19 Average Debt 54.04% 0.76% 54.80% 54.19% 1.00% 55.19% 54.60% 1.04% 55.64% 55.10% 1.05% 56.15% 55.45% 1.04% 56.49% 20 Preferred Shares 1.69% -0.03% 1.66% 1.66% -0.04% 1.62% 1.63% -0.04% 1.59% 1.61% -0.05% 1.56% 1.60% -0.06% 1.54% 21 Average Common Equity 44.27% -0.74% 43.54% 44.15% -0.96% 43.19% 43.77% -1.00% 42.77% 43.29% -1.00% 42.29% 42.95% -0.98% 41.97% 22 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% PUB-2 Page 1 of 1 Q. PUB 2.0 At what point did negotiations begin for the purchase of these support structures? Which company initiated the negotiations? A. In January 1994, Newfoundland Power and NewTel Communications entered into a Pole Ownership Agreement and a Joint Use Agreement, which together provided for the joint management and shared ownership of all utility pole infrastructure in Newfoundland Power's service territory. The initial 5-year terms of the two agreements expired on December 31, 1999. In anticipation of the expiry of the initial term of the agreements, the two companies held intermittent and informal discussions to explore ways to improve the management and administration of the joint use of poles. The concept of single ownership of the poles evolved out of these discussions. Commencing in the summer of 1999, the two companies continued discussions on a more formal basis. During the formal discussions, it was agreed in principle that an arrangement whereby Newfoundland Power would acquire full ownership of all of the poles was desirable. Detailed negotiations of the key terms of such an arrangement were carried out in the late summer and fall of 2000. By December 2000, the two companies had agreed to the fundamental elements of the arrangement, and the detailed negotiation of definitive agreements began, leading to the execution of the Support Structures Purchase Agreement on March 1st, 2001. PUB-3 Page 1 of 1 Q. PUB 3.0 On page 7 of the Direct Evidence, paragraph 3, reference is made to the repeated site visits as a result of the loosening of the guys supporting the pole lines during the installation of the steel strand for the telecommunications cable on the poles. Since January 1, 2000 how many such instances can be documented? A. Newfoundland Power does not formally track such site visits; however, when queried, regional staff readily identified several sites where such work has been performed since January 1, 2000. The table below identifies the locations and provides an approximate estimate of the time involved. Based on the information in the table, the average occurrence would require an eight-hour workday to resolve. The average daily cost of a two-person line crew is approximately $600. Location Approximate Crew Hours Worked V Connecticut Dr., Stephenville 2 Route 470, Isle-aux-Mort 4 Eastbourne Crescent, St. John's 8 , Howley Estates, St. John's 8 Outer Ring Road, St. John's 16 Jacob's Creek, Paradise 4 Trails End, Paradise 8 PUB-4 Page 1 of 1 Q. PUB 4.0 If the design, construction and management of joint use poles are currently being done by Newfoundland Power Inc., in what way will single ownership cause more efficient operations for Newfoundland Power Inc.? Please provide concrete examples, as well as illustrations of how this has not been the case in the past. A. Single ownership of support structures and a simplified process for the calculation of rentals will result in more streamlined management and administration of the joint use of support structures. Under the current joint ownership arrangement, detailed tracking of expenditures is necessary to support charges to Aliant for routine maintenance or repair of Aliant-owned f poles. Unless an emergency or public safety hazard exists, an engineering technician must correspond with an Aliant counterpart to obtain Aliant's prior approval for the work. This increases the time required to complete a task without adding any value to the work. Further, because of the delays inherent in this process, opportunities may be lost to schedule the work to be performed by a crew that is already working in the area. When a contractor is engaged to install new poles or to perform tree trimming and brush f clearing, the tracking and allocating of costs between Newfoundland Power and Aliant on V- mixed-ownership pole lines is unduly time-consuming, requiring Newfoundland Power to maintain detailed records of pole ownership on each pole line, and to perform a detailed analysis of contractor invoices and work records for each job. Further, due to the detailed nature of the billing processes, disputes with Aliant often arise, requiring additional investment of time by engineering technicians. Under the new arrangement, maintenance and repair costs are included in the rental rate, and detailed invoicing is eliminated. The new arrangement will also reduce the need for interaction between the technical staff of the two companies and eliminate the associated duplication of effort and operational delays. It will allow staff to focus instead on improving the efficient performance of value-added work. The Company has approximately 30 engineering technicians assigned to distribution line design and construction. Their average rate of pay, including overhead and vehicle costs is approximately $40 per hour. Employing a conservative assumption that the new arrangement will eliminate only one hour per week of unnecessary interaction with Aliant on issues that add no value to the operation and maintenance of the distribution system, the avoided cost would exceed $60,000 per year. a w- PUB-5 Pagel of 2 Q. PUB 5.0 5.1 On page 3 of the Pre-filed Direct Evidence of Newfoundland Power and in Exhibit 4, reference is made to the survey conducted with respect to the practice of other electrical utilities. Of the seven cases where electrical utilities own all of the Support Structures in their service territory, how many electrical utilities own poles that are used exclusively by the telecommunications company? 5.2 If there are cases where the electrical utility owns poles that are used exclusively by the telecommunications company, are these non-joint use of poles included in the electrical utility's rate base? 5.3 What is the net book value of the 30,027 Aliant non-joint use poles that are subject to this application? 5.4 Does Newfoundland Power presently have any responsibility for maintenance of the non-joint use poles? A. 5.1 None of the respondent electric utilities own the Support Structures used exclusively by the telecommunications company, however, the pole rental fee of $32 proposed in this Application is approximately double the average of $15.63 disclosed in the Joint Use Survey. The efficiencies to be gained by eliminating current duplication of effort on both an administrative and operational basis as described at pp.6 et seq of the Direct Evidence and in the Response to Information Request PUB 4.0 can be only be achieved by single ownership of support structures. It is the elimination of the inefficient duplication inherent in both Newfoundland Power and Aliant Telecom owning support structures which is, to a large degree, the justification of the higher $32 rental rate. This is described in more detail under the title Non-Joint Use Poles at p.7 of the Direct Evidence. 5.2 See the response to PUB 5.1 above. 5.3 The net book value of the 32,027 Aliant non-joint use poles that are subject to this application is $5,418,000. The net book value of $5,418,000 is a combination of 2 values. Firstly, it includes a nominal value of $1 per pole for 16,500 utility poles that Aliant acquired from Terra Nova Telecommunications Inc. (the "TNT Poles") in 1989. Secondly, it includes 15,527 poles valued at just less than $348 per pole ($347.88 x 15,527 = $5,401,500). PUB-5 Page 2 of 2 The Facilities Partnership Agreement will provide for a $32 per year rental fee from Aliant for each of these poles. This $1,024,864 ($32 x 32,027) in rental recovery exceeds Newfoundland Power's costs (including its cost of capital) of ownership and maintenance of the non-joint use poles. On a per pole basis, the $32 per pole per year rental far exceeds the costs associated with the TNT poles. This, in turn, serves to reduce the overall cost of pole ownership borne by Newfoundland Power's customers in their electric rates. This is one of the principal reasons justifying inclusion of the relatively low-cost non-joint use poles in Newfoundland Power's rate base as outlined under Appendix D at pages 3-4 of Response to Information Request PUB 1.0. 5.4 As noted at page 6, lines 42 - 45, of the Direct Testimony, Newfoundland Power currently designs and installs all utility poles in its service territory. This includes responsibility for the installation of new non-joint use utility poles and for the replacement of non-joint use structures damaged or destroyed as a result of severe weather conditions or motor vehicle accidents. Newfoundland Power is responsible for coordinating the engineering and the installation of non-joint use utility poles. Where Aliant is the owner of the structure, Newfoundland Power tracks the cost of labour and materials, and invoices Aliant for the services provided. This detailed tracking and billing process will be eliminated under the proposed arrangement. CTl PUB-6 Page 1 of 4 Q. PUB 6.0 6.1 On page two of the report of JT Browne Consulting it states that For example, for NP the average installed cost of a 40-foot joint use pole is $896 while the cost of a 35-foot non-joint use pole is $794. In the case of a telecommunications company, it may be able to get by with a 30-foot pole if it only had to meet its own needs. In addition, Exhibit 1 states (under the heading "Newfoundland Power Inc. Distribution Poles: General Description) that: A typical pole is 40 feet long and supports power conductors and communication cables. Poles come in varying lengths and widths to meet special requirements. What percentage of the non-joint use poles being purchased by Newfoundland Power are: (a) 40 feet (b) 35 feet, and (c) 30 feet. 6.2 When Newfoundland Power designs poles for its own non-joint use, what percentage of the poles are designed to be: (a) 40 feet: (b) 35 feet; and (c) 30 feet. 6.3 If the application is approved, and Newfoundland Power is responsible for design and installation all future Aliant non-joint use poles, what percentage of future non- joint use poles will be: (a) 40 feet; (b) 35 feet; and (c) 30 feet. PUB-6 Page 2 of 4 A. 6.0 General Overview Comprehensive accounting detail for support structure costs and attachments to individual support structures is not generally available. With respect to costs, for example, Newfoundland Power, segregates its treated distribution poles on an annual basis into 2 asset classes: (1) poles up to and including 35 feet in length and (2) poles over 35 feet in length. Typically, pole lengths are in 5 foot increments (although irregular lengths do exist) and pole widths (referred to as pole class) also vary. While the number of poles installed each year is maintained by Newfoundland Power in its plant records, there is no distinction made between joint use and non-joint use poles. Aliant Telecom accounts for its treated distribution pole costs on an annual basis by the dollar value of total investment, but does not keep accounting record of the number of poles installed each year. Aliant Telecom accounting records like Newfoundland Power records does not distinguish between joint use and non-joint use poles. Over the history of joint use, a number of means of estimating the total number of poles in the field have been used. Typically, each joint use agreement negotiation included an agreement between Newfoundland Power and Aliant Telecom on the number of joint use poles. While these negotiations reached mutually acceptable estimates of joint use poles, they were acknowledged to have an element of imprecision in them. The matter of accounting and data limitations has been before the Board in the past. In an award dated October 29th, 1991, the Board resolved a number of cost related issues between Newfoundland Power (then, Newfoundland Light & Power Co. Ltd.) and Aliant Telecom (then, Newfoundland Telephone Company Ltd.). A copy of the Board's award is attached to this Response to Information Request PUB-6. At pp. 6-7 of the award, the Board specifically commented upon the accounting systems and estimates or proxies used in joint use administration. During the late 1980s and early 1990s Newfoundland Power and Aliant Telecom developed a joint use database (the "joint use database") to provide better information on joint use pole ownership and CATV attachments. The joint use database contained more detailed information on joint use poles including pole length, attachments and ownership. The chief deficiencies of the joint use database were that it had incomplete information regarding non-joint use poles and it was extremely expensive to maintain. In 1996, as part of an omnibus PUB inquiry into numerous issues between Newfoundland Power and CATV operators relating to the number of CATV attachments, BDO Dunwoody, the Board's consultants, reported that detailed tracking of individual PUB-6 Page 3 of 4 attachments was an expensive time consuming process (see: Response to Information Request PUB-1.0). Following this, in late 1996, Newfoundland Power concluded agreement with all CATV operators (excluding Glovertown Cable TV) which made the process of attachment determination and billing more cost efficient by use of an agreed upon annual proxy (the annual number of CATV subscribers for each company multiplied by an agreed upon ratio of attachments per subscriber). From an asset accounting perspective, Newfoundland Power tends to view distribution support structures as more of a single interconnected asset than a group of hundreds of thousands of individual assets. On an operational basis, the distribution power lines which actually deliver electricity to customers tend to be the most common perspective within which support structures are viewed. 6.1 Approximately 85% of Aliant Telecom's non-joint use support structures are recorded in the joint use database. Based on the breakdown of pole lengths contained in those records, the estimated breakdown of the 32,027 non-joint use poles by length is as follows: (a) 40 feet or longer 10% (b) 35 feet, and 14% (c) 30 feet or less 76% 6.2 Both joint use and non-joint use pole lines are built to the minimum CS A overhead standard CAN3 - C22.3 No.l - M87. Pole heights must be sufficient to allow for the required clearance above the ground and to provide for the required separation between cables. The length of each pole depends primarily on the conductor and other electrical equipment that will be mounted on the pole. Typically, service poles and secondary structures are 30 feet long, structures supporting primary single-phase and horizontal 3- phase conductors are 35 feet long, and poles supporting primary vertical 3-phase conductors or transformers are 40 feet long. Other factors, such as changes in terrain and the need to route lines across roads, also influence the length of poles to be used in particular circumstances. The records in the joint use database indicate that the breakdown of Newfoundland Power-owned non-joint use poles by length is as follows: (a) 40 feet or longer 25% (b) 35 feet 35% (c) 30 feet or less 40% PUB-6 Page 4 of 4 A review of the past three years provides a better indication of current installations by length of poles. For the period of 1998 to 2000 the percentages were as follows: (a) 40 feet or longer 51% (b) 35 feet 24% (c) 30 feet 25% Generally, non-joint use poles of Newfoundland Power are increasing in length over time. This is principally driven by the greater safety provided by increased clearances from ground. 6.3 The records in the joint use database indicate the following breakdown of Aliant Telecom owned non-joint use poles installed in the period 1998 to 2000: (a) 40 feet and longer 10% (b) 35 feet and longer 48% (c) 30 feet and longer 42% Generally, non-joint use poles of Aliant Telecom are also increasing in length. This is principally the result of the increase in fibre optic installation and the need for greater security provided by increased clearances from ground. Using the total number of non-joint use poles installed between 1998 and 2000 as a guide, we estimate the percentage of future non-joint use poles (both Newfoundland Power and Aliant Telecom) to be as follows: (a) 40 feet or longer 44% (b) 35 feet 28% (c) 30 feet 28% IN THE MATTER OF AN ARBITRATION BETWEEN THE_ NEWFOUNDLAND TELEPHONE COMPANY _ LIMITED. (hereinafter referred to as "Newfoundland Telephone") AND NEWFOUNDLAND LIGHT &_POWER CO. LIMITED (hereinafter referred to as "the Power Company") Before: The Board of Commissioners of Public Utilities of Newfoundland R.E. Good, Chairperson L.E. Galway, C.A.. M.B.A., Commissioner W.W. Thistle. LL.B., C.Arb., Commissioner Hearing Dates: September 4, 5. 6. 24 and 26, 1991 At: St. John's. Newfoundland Representina the Board: Sean Hanrahan, LL.B. Representing Newfoundland Telephone Company Ltd.: Evan Kipnis Representing Newfoundland Light & Power Co. Limited: Peter Alteen - 2 - /"" The Newfoundland Telephone Company Limited (hereinafter called "Newfoundland Telephone") and the Newfoundland Light & Power Co. Limited (hereinafter called the "Power Company") entered a Joint Use Agreement (hereinafter called "the Agreement") effective January 1, 1988, setting out the terms and conditions of the joint use of their respective poles and joint use of buried construction. The Agreement was executed on June 29, 1988. It r- contained at Schedule "A" a set of Administrative Practices intended to provide for the detailed administration of the Agreement through a Joint Use Committee. Section 14 of the Administrative Practices required that >v the parties exchange data annually in order to determine the rental charges owing each other for use of Joint Use Poles. For the period January 1, 1990, to December 31, 1990, the parties exchanged the required data. Newfoundland Telephone indicated in a letter dated 1990 03 13 from Mr. D.L. Hutchens, General Manager - Operations East, that its total number of poles in services as of 1989 12 31 was 68,718, the embedded cost of poles in service was $23,206,300 and the annual carrying cost factor was 0.2202. Mr. F.M. Swantee, Manager, Distribution Systems and Services, responded on 1990 03 14 asking that this information be revised in accordance with Clause 2.04 of the Agreement and 13.01 of the Administrative Practices. Mr. Swantee provided information concerning the Power Company's data on 1990 05 01. He wrote again to Mr. Hutchens on - 3 - 1990 12 20 indicating the Power Company could not endorse the calculations provided by Newfoundland Telephone for 1990. A letter from Mr. A.F. Ryan, President and Chief Executive Officer of the Power Company, to Mr. V.G. Withers, President and Chief Executive Officer of Newfoundland Telephone, dated 1990 12 19 provided the detail as to why the Power Company did not accept the data as presented by Newfoundland Telephone: "Article 8.01 of the Joint Use Agreement dated January 1, 1988 (the "Agreement") between Newfoundland Telephone Company Limited ("NTC") and Newfoundland Light & Power Co. Limited ("NLP") provides that a tenant utility with attachments on utility poles owned by the other utility shall pay rentals as calculated in Section 14 of the Administrative Practices to the Agreement. In March, 1990 NTC included the embedded cost of certain utility poles owned by Terra Nova Telecommunications Inc. prior to its amalgamation with NTC on January 1, 1989 (the "TNT Poles") in NTC's calculation of its embedded cost under the Agreement. While NLP expressed its disagreement with NTC on this point, NTC has refused to alter its position. The result of this has been a reduction in the net rentals actually paid by NTC to NLP in 1990 under the Agreement. By including the embedded cost of the TNT Poles in its embedded cost calculations and paying rentals to NLP based, in part, upon such embedded cost calculations, NTC is failing to properly observe its obligation under Article 8.01 of the Agreement to calculate rentals in accordance with Section 14 of the Administrative Practices. Neither the Agreement generally nor Section 14 of the Administrative Practices in particular allow the embedded cost of the TNT Poles to be - 4 - included in the calculation of NTC's embedded cost under the Agreement. NLP considers NTC's failure to calculate rentals as provided in Section 14 of the Administrative Practices to be a default under the Agreement. In accordance with Article 11.01 of the Agreement, please accept this letter as written notice of NTC's default under the Agreement as described above." In a response dated December 21, 1990, Mr. Withers disagreed with the allegations that Newfoundland Telephone was in any way in default of its obligations under the Agreement. He maintained the calculation of embedded cost is in accordance with the provisions of the Agreement and with the past practice of the parties. The Telephone Company's view was that there is a dispute between the parties as to the interpretation of the Agreement and, pursuant to Article 18, it sought a reference of the matter to arbitration. The parties agreed to have the dispute resolved by the Board of Commissioners of Public Utilities and hearings were held over a five-day period. Extensive oral and written evidence was submitted and detailed arguments presented. - 5 - Interpretation of the Agreement and the Administrative Practices The issue that the Board must resolve is rather straightforward viz, in the calculation of rentals the Power Company pays to Newfoundland Telephone, is Newfoundland Telephone entitled to include in its embedded cost calculated the cost associated with certain utility poles owned by Terra Nova ^ Telecommunications Inc., (hereinafter referred to as "Terra Nova Tel") prior to the amalgamation with Newfoundland Telephone on January 1, 1989? This is an important question, since the inclusion of those poles has a significant effect on the net rentals owing between the parties with a difference of $480,764 in ( lost revenue to the Power Company in 1990 and $424,459 in lost revenue in 1991. This difference results from the fact that the inclusion of the Terra Nova Tel's poles increases the total Newfoundland Telephone poles from 45,572 to 68,718 and reduces the embedded cost per pole from $441.69 to $310.33. The capping effect of the formula used for rental calculations then has a major impact on the total charge that the Power Company makes for Newfoundland Telephone's use of its poles. There is also an impact on the amount Newfoundland Telephone can collect from the Power Company for use of Newfoundland Telephone's poles. The Board is faced with the responsibility of interpreting the Agreement reached between the parties and Schedule 1 "A" of the Agreement setting out the Administrative Practices. - 6 - There are several critical provisions which will have to be assessed and over which there is a major disagreement between the parties. Article 8.01 of the Agreement places an obligation on the Tenant, i.e., the party making, applying for or having the permission to make Joint Use of a pole belonging to the other Party, to pay to the Owner, i.e., the party who owns or controls the facility, rentals as calculated in Section 14 - Rentals of Schedule "A." Section 14.01 prescribed how the Annual Carry Charge for Joint Use Pole Units for each party shall be calculated. One component of the formula is the "average embedded cost of a Pole Unit." Newfoundland Telephone's position is that the poles that had been owned by Terra Nova Tel prior to the amalgamation of the two companies should legitimately be factored into its embedded costs. The Power Company disagrees. The parties provided considerable evidence as to why the Board should favor their respective positions. We were referred to various provisions of the document and to the practice between the parties as to how embedded costs had been arrived at in the past. There is uncontradicted evidence to show that both parties had included poles other than those in joint use when calculating embedded costs. There is also uncontradicted evidence to the - 7 - effect that the major reasons why nonjoint use poles were used was that the parties1 accounting systems were unable to separate the poles into the categories necessary to determine precisely the cost of joint use poles from the total cost of poles. There was the ability, however, to exclude the untreated wood poles and those not used for distribution and the Power Company had done that. These poles are not used to any extent as joint use poles and this is precisely the case with the Terra Nova Tel poles, only approximately 4 percent of which are in joint use. It must also be noted that the Power Company had data to show that the embedded cost of its universe of poles was sufficiently close to the cost of its joint use poles that that number could serve as a reasonable ( proxy. The Board will first look at what the parties had negotiated in their Agreement for joint use. Article 2.04 states ^ the area in which the Agreement is effective: "This Agreement is effective within the territories described in the Administrative Practices in which both parties operate and distribute their respective services and shall cover all facilities now existing or hereinafter constructed or acquired in the above territories or any territories that may be brought under this Agreement by mutual consent." Section 13.01 of the Administrative Practices defines the Joint Use Territories: - 8 - "The terms and provisions of this agreement shall apply to facilities in the territories of the Province of Newfoundland in which both parties are authorized and empowered to provide service as of the date of this Agreement and as generally outlined in the map below." There is no dispute that the territory covered by the Terra Nova Tel's operation was not within the area covered by the Joint Use Agreement. The calculation of the Annual carry charge for Joint Use Pole Units is prescribed in Section 14.01. - 9 - "SECTION 14 - RENTAL8 14.01 Annual Carrying Charge The Annual Carrying Charge for Joint Use Pole Units for each Party shall be calculated by multiplying its average embedded cost of a Pole Unit by its annual carrying charge rate except that, in each calendar year, the difference between the annual carrying charge rates of the Parties, and the difference between the average Embedded Costs of the Parties, shall not exceed the following percentage of the lower rate or cost: FOR THE YEAR PERCENTAGE 1988 10 1989 7.5 1990 5 1991 5 1992 and subsequent 5 In the event that the actual difference exceeds the above percentage, the Party with the higher rate or cost shall use for its calculations the lower rate or cost plus the above percentage of the lower figure." f It is this section which is at the centre of the parties' dispute. Since the introduction of the use of "embedded costs" as a means of calculating rentals for joint use, both parties have calculated their respective "embedded costs" on the basis of each corporation's total distribution poles with certain adjustments. It is accepted by the parties that the purpose of the rental calculations is to arrive at an equitable division of costs related to joint use. However, neither party's accounting system is able to distinguish costs associated with facilities which are jointly , used and those which are not. The various adjustments that were - 10 - ( made were intended to arrive at a reasonable proxy for joint use costs. Newfoundland Telephone did not share the view of the Power Company that a calculation based on the average of all distribution poles was a reasonable proxy for the embedded cost of a joint use pole but it accepted that "Using the total universe of poles was a practical solution ...." and that "Using the total universe of poles provided a mechanism to simplify the administration of the s 1979 Agreement and, later, of the Joint Use Agreement.11 It further acknowledged that the average embedded cost per pole, even though not a reasonable proxy for joint use poles, was what the parties had agreed to use. Mr. Hutchens, General Manager, Operations East with Newfoundland Telephone, gave evidence to the effect that (^ "...looking back at the information of embedded cost, to me, the use of the total distribution system was not a good proxy for joint use poles. But that's hindsight. At the time, obviously, the c parties must have seen something different." With the introduction of the 23,146 Terra Nova Tel's poles at an embedded cost of $55.57 per pole it became important to determine whether they could be properly used in the total to calculate the "embedded cost of a Pole Unit" for the purpose of the rental rates. The only provision in the Agreement or the Schedule to help the Board in deciding what goes into the calculation of V embedded costs is Section 14.04 of Schedule "A." - 11 - "Embedded costs of Joint Use Pole Units (emphasis added) shall include, without limitation, engineering, design and construction costs, land and easement acquisition costs and material, labour and Owner's overhead costs." There is no Section which provides a corresponding statement for simply "Pole Units." This suggests to the Board quite clearly that when the parties struck their Agreement to direct what went into v the embedded cost calculation they were concerned about "Joint Use Poles" not all Pole Units in the universe of each Company's Pole Units with any adjustments they were prepared to make. Hence, when the parties referred to embedded cost of a Pole Unit in Article 14.01 they could only have been referring to those Pole Units which are in joint use since there was no basis on which to determine what was included in the embedded cost of simply (' a "Pole Unit." Newfoundland Telephone argued that Article 2.04 is limited to facilities (and therefore poles) for the purposes of identifying poles on which rental charges would apply. Newfoundland Telephone argued this does not limit poles in other new territories being introduced into the universe of poles used to calculate embedded cost. The Board does not believe this argument to be valid since the Agreement has been based on joint use poles / not the universe of poles. - 12 - This line of reasoning is quite consistent with other provisions of the Agreement and the Schedule. For example, in Section 13.01 there is a clear statement that the terms and provisions of the Agreement apply to facilities in specified territories. These facilities include, by virtue of Article 1.01, ••poles." By logical conclusion, the terms and provisions of the Agreement do not therefore apply to poles or pole units outside the territories in which both parties are authorized and empowered to provide service as of the date of the Agreement. Article 2.04 does permit the parties by mutual agreement to include new territories under the Agreement. In the instant case, there is no doubt that the territory formerly covered by Terra Nova Tel was not brought under the Agreement by mutual consent. From this analysis, it would appear that the parties foreclosed the possibility that one or the other might amalgamate with another company, then introduce a significant number of Pole Units from territories not covered by the Agreement into the embedded cost calculation and cause a major impact on the net rentals to be paid under the Agreement they had negotiated. If such Pole Units were to be introduced, it would have to be through mutual consent to include under the Agreement any territory other than the territories set out in Schedule 13.01. - 13 - Section 3 tends to further support this reasoning. It places emphasis on planning and coordination of facilities. The purpose of planning is set out in Section 3.02 as "....to stabilize this process as much as possible to promote sound long-term decisions and ensure the orderly development of Joint Use Facilities." Five-year construction programs relative to proposed Joint Use Facilities are prescribed in Section 3.01, and Section 3.04 recognizes that it will not be possible to identify and document all Facilities to be constructed within the five-year planning period. However, as such Facilities are identified by a Party, it shall immediately notify in writing and coordinate for Joint Use and each party should then "... .organize its resources so as to have the capability of fulfilling its obligations under this Agreement." One such obligation is the requirement to pay rentals for Joint Use Facilities. It would totally undermine the planning concept if either party could, for its own business reasons, amalgamate with another and thereby impose on the other party to the Agreement a significant cost thereby undermining the capability of fulfilling its rental obligations under the Agreement. - 14 - Summary In the result, a close examination of the relevant provisions of the Agreement and the Administrative Practices in Schedule "A" leads to a conclusion that the calculation of embedded costs by Newfoundland Telephone cannot include the costs of the 23,146 Pole Units that had been owned by Terra Nova Tel prior to the amalgamation of the two companies on January 1, 1989. The Agreement restricts embedded costs to the Joint Use Pole Units within the territory prescribed in Section 13.01, since the parties have not reached a mutual agreement to extend the territories. The fact that both had included other than Joint Use Poles is a result of the accounting systems which could not precisely track only the cost of Joint Use Poles. The universe of Pole Units with agreed adjustments was satisfactory to the parties and served as a proxy for the cost of Joint Use Poles. The parties' failure to insist that embedded costs be strictly restricted to Joint Use Pole Units does not estop them from reverting to each others' strict rights under the Agreement. Article 16.01 provides that the failure of either party to enforce any of the terms or conditions of this Agreement shall not constitute a general or specific waiver or relinquishment of any such terms or conditions but the same shall be and remain at all times in full force and effect. - 15 - In consequence, Newfoundland Telephone is ordered to recalculate its embedded costs without reference to the poles previously owned by Terra Nova Tel. The parties had a satisfactory method of computing appropriate embedded costs using their universe of Pole Units with adjustments and the forum of the Joint Use Committee to resolve the details. This process should be engaged to arrive at the appropriate embedded costs. With respect to interest, the Board orders that Newfoundland Telephone pay to the Power Company interest calculated 9 in accordance with Article 15 of the Agreement upon all amounts properly payable once the embedded costs for Newfoundland Telephone have been recalculated. The Board concludes that the costs of the arbitration are to be borne and paid equally by the parties, since there are insufficient grounds to direct any other cost apportionment. - 16 - IT IS THEREFORE ORDERED THAT: 1. Newfoundland Telephone Comoanv Limited recalculate its embedded costs without reference to the poles previously owned ( ' • bv Terra Nova Telecommunications Inc. 2. With respect to interest. Newfoundland Telephone Company Limited shall pay to the Newfoundland Light & Power Co. ( Limited interest calculated in accordance with Article 15 of the Agreement upon all amounts properly payable once the embedded costs for Newfoundland Telephone Company Limited have been recalculated. ( 3. The costs of the arbitration are to be borne and paid eaually bv the parties. - 17 - Dated at St. John's, Newfoundland, this 29th., day of October, 1991. R.E. Good, Chairperson L.E. Galway, C.A., M.B Commissioner W.W. Thistle, LL.B., C.Arb., Commissioner <^X Carol Horwood, Clerk t PUB-7 Page 1 of 3 Q. PUB 7.0 7.1 How have the estimated average embedded costs per pole, both for joint use and for non-joint use, shown in Exhibit 9, Page 1 of 1, been derived? 7.2 What does the fixed cost for both joint use and non-joint use poles, as shown in Exhibit 9, include? 7.3 Why has the Average Recovery per pole from CATV, as shown in Exhibit 9, been used to lower the cost to Aliant instead of being used to lower the overall cost per pole? 7.4 If there are in total 125,000 attachments for CATV operators, Page 3 of Direct Evidence, and the rate to be charged by Newfoundland Power for each attachment is $12.84, Page 5 of Direct Evidence, how can the total revenue from CATV operators for 2001 total $1.8 million? 7.5 How many of the 125,000 CATV attachments are on: (a) Newfoundland Power non-joint use poles; and (b) Aliant non-joint use poles? A- 7.1 The estimated average embedded cost per pole has been derived as shown in Table 1: Table 1 Newfoundland Power Aliant Total ( Embedded Cost $118,085,434' $63,391,5002 $181,476,934 Pole Count 178,591 85,3753 263,966 Embedded Cost per Pole $661 $743 $688 Rounded to $700 1 Estimate of Newfoundland Power's embedded cost of poles as December 31st, 2000. 2 63,408,000 as shown in Exhibit 6 less 16,500 Terra Nova Tel poles valued at $1 each. 3 101,875 poles purchased from Aliant less 16,500 Terra Nova Tel poles. The estimate for non-joint use costs is assumed to be 50% of the estimated embedded cost for joint-use structures. The poles that Aliant purchased from Terra Nova Tel have been excluded from embedded cost calculations for joint use since the Board's award in the joint use arbitration dated October 29, 1991 which is included with the Response to Information Request PUB-6.0. The 16,500 non-joint use poles that Aliant acquired from Terra Nova Tel in 1989 have a ( nominal value of $1 each. The Terra Nova Tel poles represent approximately 50% of the non-joint use poles that Newfoundland Power is purchasing from Aliant. PUB-7 Page 2 of 3 7.2 The fixed cost shown in Exhibit 9 includes return on investment, depreciation and income tax. The application of the fixed charge rate to determine the annual cost of investing in plant is consistent with Order No. P.U. 7 (1996-97) which approved Street & Area Lighting Cost of Service & Rate Design and Order No. P.U. 4 (1997-98) which approved the current CIAC Policy and derivation of cost factors. The individual components of the items included in Exhibit 9 are shown in Table 2 below which is consistent with the assumptions used in the economic analysis prepared and shown in Exhibit 10 which has been submitted to the Board. Table 2 Cost of money* Debt 54.08 of 9.18 4.96% Preferred 1.83 of 6.33 0.12 Common Equity 44.09 of 9.59 4.23 9.31% Capital recovery factor (33.0 years) 9.83 Levelized capital cost allowance = fli =0.0983 x 100 x 0.040 2.95 r + i 0.0931 + 0.040 Levelized debt interest Capital recovery factor (33.0 years) 9.83 Less: Straight line depreciation 3.00 Levelized cost of capital 6.83 Levelized debt interest = 4.96 x 6.83 3.64 9.31 Income tax: Capital recovery factor . 9.83 Less: Levelized capital cost allowance 2.95 Levelized debt interest 3.64 3.24 Effective Income tax @ 39.5% 3.24 x 0.395 2.12 (1.00 - 0.395) Annual Fixed Charges: Return Sinking fund depreciation Effective Income tax Rounded to 12% * Based on estimated 1999 capital structure, embedded cost of debt and preferred and allowable return on common equity. PUB-7 Page 3 of 3 7.3 As pointed out in Exhibit 1 (page 1) the communications space is located below the power conductors and is typically 2 feet (or 600 mm) in length. The communications space accounts for 40% of the allocated cost of a pole and cable television attachments are attached within this space (see: Appendix 2 to Report of JTBrowne). Since the cable attachments are within the communications space on the pole, the revenue from cable attachment is typically attributed to the cost of the communications space as opposed to the cost of the pole. 7.4 The CATV revenue forecast includes charges associated with strand charges to CATV operators which is separate from pole rentals. 7.5 The number of attachments on Newfoundland Power Non-joint use poles is 4,084 and the number of attachments on Aliant's non-joint use poles is 8,627. e 00 PUB-8 Page 1 of 2 Q. PUB 8.0 8.1 Please provide a breakdown, using the number of poles in each age group, of joint use and non-joint use poles included in Exhibit 6, Page 1 of 1. 8.2 Please explain the growth in non-joint use poles, of 1,225 poles shown in Schedule 1, Installation Costs, Page 1 of 1, of the Direct Evidence of Newfoundland Power, for the year 2001. A. 8.1 The number of poles by age group has been estimated on the basis of the records maintained in the joint use database described in the Response to Information Request PUB 6.0. The breakdown provided in Table 1 below is an estimate of pole vintages by joint use and non-joint use based upon extrapolations of vintage data from the joint use database. Table 1 Newfoundland Power Inc. Distribution of Poles Purchased from Aliant Poles de of Construction Non-Joint Use Joint Use Total 1991-2000 6,767 24,595 31,362 1981-1990 3,905 16,248 20,153 1971 - 1980 2,608 13,001 15,609 1970 & prior 18,747 16,004 34,751 Total 32,027 69,848 101,875 PUB-8 Page 2 of 2 8.2 As noted in Exhibit 10, at page 6 of 8, the projections of pole growth for 2001 shown in Schedule I - Installation Costs of Exhibit 10 are based on actual planned capital work for the year. The planned work for 2001 includes several extraordinary construction projects associated with the installation of new Aliant non-joint use fibre optic lines. Included in these projects are planned fibre optic circuits in the Burin area (estimated 217 non-joint use poles); Grand Falls area (estimated 450 non-joint use poles); and in the Corner Brook area (estimated 520 non-joint use poles). The contribution in aid of construction payable under the Facilities Partnership Agreement by Aliant Telecom in respect of these 3 projects is estimated to be $605,370 or approximately 60% of the cost of contribution of these projects. Growth in non-joint use poles in future years is expected to be more in line with historical experience. PUB-9 Page 1 of 1 Q. PUB 9.0 9.1 Provide copies of the constating documents for 11003 Newfoundland Inc. 9.2 Provide copies of all agreements between: (a) Newfoundland Power Inc. and 11003 Newfoundland Inc.; and (b) Aliant Telecom Inc. and 11003 Newfoundland Inc. A. 9.1 This was provided under covering letter of May 31st, 2001 in furtherance of an undertaking given by Newfoundland Power on May 30th, 2001. 9.2 The only agreement to which 11003 Newfoundland Inc. is a party is filed as Exhibit NP-2 in this proceeding. PUB-10 Page 1 of 2 (1st Revision) Q. PUB 10.0 10.1 With respect to Schedule A to the Application, provide a breakdown of the $3,316,000 referred to therein. In particular, indicate the following: a) how much of this amount will be spent on joint use versus non-joint use structures, b) the locations at which the work will be performed (joint use and non- joint use, additions and reconstruction), c) the reasons for the line'extensions, d) the number of poles being added (joint use and non-joint use), e) the number of poles being replaced (joint use and non-joint use), f) the age of the plant being reconstructed or rebuilt, and g) the details of the contributions being paid by Aliant Telecom Inc. A. 10.1 (a) The components of the $3,316,000 total cost of Distribution Additions for 2001 from page 1 of Schedule A of the Application may be found in Exhibit 10, Schedule I. Table 1 below provides a calculation of the total together with references to Schedule I: Table 1 2001 Expenditures Reference Costs (Schedule I) Joint Use Growth $887,250 Line 5 Replacements 994,500 Line 9 Total Joint Use 1,881,750 Non-Joint Use Growth 1,048,600 Line 20 Replacements 385,200 Line 25 Total Non-Joint Use 1,433,800 l Total Expenditures $3,315,550 Rounded to $3,316,000 1 Aliant Telecom Inc. will pay contributions totaling $855,000 to Newfoundland Power Inc. in respect of these additions to property. 7/ 7 oof PUB-10 Page 1 of 2 (1st Revision) Q. PUB 10.0 10.1 With respect to Schedule A to the Application, provide'a breakdown of the $3,316,000 referred to therein. In particular, indicate the following: a) how much of this amount will be spent 911 joint use versus non-joint use structures, b) the locations at which the work will b4 performed (joint use and non- joint use, additions and reconstruction), c) the reasons for the line'extensions d) the number of poles being addecf (joint use and non-joint use), e) the number of poles being renlaced (joint use and non-joint use), f) the age of the plant being reconstructed or rebuilt, and g) the details of the contributions being paid by Aliant Telecom Inc. A. 10.1 (a) The components of the $3,316,000 total cost of Distribution Additions for 2001 from page 1 of Schedule A of the Application may be found in Exhibit 10, Schedule I. Table 1 below provides a calculation 0/the total together with references to Schedule I: / Table 1 / 2001 Expenditures 1 Reference Costs (Schedule I) / Joint Use / Growth $887,250 Line 5 Replacements 994,500 Line 9 Total Joint JUse 1,881,750 Non-Joinfi Use Growth 1,048,600 Line 20 Replacements 385,200 Line 25 TotalMon-Joint Use 1,433,800 l Total Expenditures $3,315,550 Rounded to $3,316,000 1 Aliant Telecom Inc. will pay contributions totaling $855,000 to Newfoundland Power Inc, in respect of these additions to property. PUB-10 Page 1 of 2 Q. PUB 10.0 10.1 With respect to Schedule A to the Application, provide a breakdown of tj; $3,316,000 referred to therein. In particular, indicate the following: a) how much of this amount will be spent on joint use versus nq^joint use structures, b) the locations at which the work will be performed (joint use'and non- joint use, additions and reconstruction), c) the reasons for the line extensions, d) the number of poles being added (joint use and non-idint use), e) the number of poles being replaced (joint use and non-joint use), f) the age of the plant being reconstructed or rebuHf, and g) the details of the contributions being paid by AJiant Telecom Inc. A. 10.1 (a) The components of the $3,316,000 total cost of Distortion Additions for 2001 from page 1 of Schedule A of the Application may be founa in Exhibit 10, Schedule I. Table 1 below provides a calculation of the total together vvith references to Schedule I: Table y 2001Expenditures Reference Costs (Schedule I) Joint Use Growth/ 7 $887,250 Line 5 Replacements 994,500 Line 9 Total Joint Use 1,881,750 Non-Joint Use Growth 1,048,600 Line 20 /Replacements 385,200 Line 25 Total Non-Joint Use/ 1,143,800 l Total Expenditures $3,315,500 Rounded to / $3,316,000 1 Aliant Telecom Inc. will pay contributions totaling $855,000 to Newfoundland Power Inc. in respect of these addi}4ons to property. PUB-10 Page 2 of 2 (b) The location of all of the line extensions for 2001 is not known at this point in time. Poles for line extensions are driven by customer growth as new subdivisions are developed during the construction season and the installation of power lines tends to occur later in the year. The locations of the poles required for non-joint use line extensions are identified in the Response to Information Request PUB 8.2. There are 2,550 joint use poles (see: Exhibit 10, Schedule I, line 7) for reconstruction of existing joint use lines. Included are poles located in St. John's area (estimated 400 joint use poles), Western area (estimated 250 joint use poles), Avalon area (estimated 570 joint use poles), Burin area (estimated 250 poles joint use poles), and Clarenville area (estimated 170 poles joint use poles). As a result of the proposed agreement between Newfoundland Power and Aliant, Newfoundland Power is seeking the approval for the capital cost of 40% of these poles. The Board has already approved 60% of the capital cost of these poles in its approval of Newfoundland Power's 2001 capital budget by Order No. P.U. 24 (2000-2001). Approximately 100 of the 450 non-joint use poles (see: Exhibit 10, Schedule I, line 24) will be installed in the Cornwall Heights area located in St. John's. The location of the remaining poles to be installed is not yet known. (c) New customer growth is the primary reason for line extensions. (d) Newfoundland Power estimates 910 (40% of 2,275 poles shown in Exhibit 10, Schedule I, line 3) joint use poles and 1,225 (see : Exhibit 10, Schedule I, line 19) non-joint use poles being added. (e) Newfoundland Power estimates 1,020 (40% of 2,550 poles shown in Exhibit 10, Schedule I, line 7) joint use and 450 (see : Exhibit 10, Schedule I, line 24) non-joint use poles being replaced. (f) The plant being reconstructed or rebuilt will be of various vintages. Generally older poles will be replaced first, however, there are also times when poles have to be replaced due to severe weather conditions and as a result of damage caused by vehicle accidents. (g) Aliant will make a contribution of $510 for each non-joint use pole it requires (Direct testimony, p. 5, line 2). This contribution along with the $32 annual rental fee will cover all costs owing to Newfoundland Power as a result of the acquisition. The details of Aliant's contribution for non-joint use poles are shown on Schedule I of Exhibit 10. There will be 1,225 poles (line 19) for growth to which they will contribute $624,750 (line 21). 450 poles (line 24) will be replaced to which Aliant will contribute 229,550 (line 26). PUB-11 Page 1 of 2 Q. PUB 11.0 11.1 A comparison of Other Revenue (Appendix B, p. 1 of 7, line 5, and Appendix D, p. 1 of 7, line 5, Response to Information Request PUB 1.0) for 2001 shows that there would be a decrease of $556,000 if non-joint use poles were excluded from regulated earnings. In considering 50% of the total number of non-joint use poles, the average revenue for such a pole is $34.72 (or $556,000/16,018 poles). The average revenue per joint use pole is $97.35 (or $3,400,000 / 34,924 poles). If the pole rental charge of $32.00 per pole is removed from this figure, the revenue from a joint use pole exceeds that from a non-joint use pole by approximately 2300%. Provide an explanation of this variance. A. 11.1 The average incremental revenue per pole of $34.72 based on the 16,013 non-joint use poles purchased in 2001 (50% of the total of 32,027) is correctly stated in the question. However, the calculation of average revenue per joint use pole of $97.35 put forth in the question is not correct. The error in the calculation is in applying the annual rental rate to only the joint use poles to be purchased from Aliant in 2001. Referring to the Facilities Partnership Agreement, the determination of the annual revenue per pole may be calculated by first applying the rental rate of $32.00 per pole to all of the poles in Newfoundland Power's service territory to which Aliant is attached (Billable Pole Units, Schedule "B", page 1 of 3), adjusted by the Transitional Pole Count Adjustment (Schedule B, page 3 of 3), in order to determine the total annual rental fee in respect of joint use and non-joint use poles. In order to calculate the average revenue per joint use pole, the number of billable joint use poles must first be determined. This requires that the non-joint use poles first be subtracted from the Billable Pole Units (211,970 - 32,027 = 179,943). The total of 179,943 joint use poles is also shown in Exhibit 2, page 2 of 2. The next step is the adjustment of the billable joint use pole count by the Transitional Pole Count Adjustment. This adjustment, in 2001, represents 50% of the Billable Pole Units (211,970 x 50% = 105,985). Therefore, for the purpose of calculating joint use pole revenue, the Transitional Pole Count Adjustment should be reduced by 50% of the non-joint use poles (105,985 - 16,013 = 89,972). The transitional adjustment is then subtracted from the total of 179,943 joint use poles, resulting in a total billable joint use pole count for 2001 of 89,971 (179,943 - 89,972). The correct average revenue per joint use pole is therefore $37.79 ($3,400,000 / 89,971 poles). PUB-11 Page 2 of 2 The average revenue per joint use pole is higher than the average revenue per non-joint use pole by $3.07. This difference is principally related to the higher proportion of cable television (CATV) attachment revenue associated with the joint use poles. Only 27% of non-joint use poles have CATV attachments, while 65% of joint use poles have such attachments. PUB-12 Page 1 of 1 Q. PUB 12.0 12.1 According to the information provided in page 2 of the report by JT Browne Consulting, the installed cost of a 30-foot pole is 82.4% of the cost of a 40-foot pole. Since the capital cost has been used to calculate the average embedded cost, how can it be assumed that the average embedded cost of a non-joint use pole is 50% of the average embedded cost for joint use structures (Exhibit 9, p. 1 of 1 and the Response toPUB-7,p. Iof3)? A. 12.1 The chief reason that the average embedded cost of a non-joint use poles is estimated to be 50% of that of a joint use pole is related to the 16,500 non-joint use poles that Aliant acquired from Terra Nova Tel that have a nominal value of $1 each. These low cost poles, in effect, bring down the average. The following illustrates this calculation of the estimate for the Aliant non-joint use poles that Newfoundland Power is purchasing. Estimated cost of an Aliant 32,027 * X = $743 2 x 15,527 3 + $16,500' non-joint use pole 32,027 X = $11,553,061 X = $360 $360/$7005 = Rounded to 50% Number of Aliant non-joint use poles. Aliant's embedded cost per pole (see: Response to PUB-7.1, Table 1). 32,027 total non-joint use poles - the 16,500 Terra Nova Tel poles. Aliant poles purchased from Terra Nova Tel. Average embedded cost (see: Response to PUB-7.1, Table 1). Table 1 in PUB-8.1 shows that 18,747 of the 32,027 or approximately 58% of the non- joint use poles are over 30 years old. A larger percentage of poles installed in recent years are joint use poles. This will also have the effect of reducing the embedded cost for non-joint use poles as a percentage of joint use poles. PUB-13 Page 1 of 2 Q. PUB 13.0 13.1 According to the Response to Information Request PUB 6.1, approximately 76% of the non-joint use poles to be purchased from Aliant (approximately 24,000 poles) are 30 ft. or less. Of these, how many are expected to be used at some future date by Newfoundland Power Inc. in the distribution of electricity? What is the expected time frame for putting these poles into use in this manner? 13.2 Of the approximately 8000 poles that remain, how many are expected to be useful in the distribution of electricity? During what time frame? 13.3 At the present time, are there generally distribution lines in the areas of non-joint use poles that are used to distribute electricity to the same customers who are being serviced by non-joint use poles? Provide a listing of any areas where there are currently no such distribution lines and indicate how many non-joint use poles are located in these areas. A. 13.1 The 24,000 non-joint use poles that are 30ft or less are generally located such that they will unlikely be used by Newfoundland Power in the distribution of electricity. These poles are typically in lines that historically took a different route than Newfoundland Power lines. In some cases an Aliant non-joint use line will serve as a telecommunications trunk between communities. Newfoundland Power, on the other hand, may use a high voltage transmission line as an electrical trunk between the same two communities. This type of situation exists, for example, between Grand Bank and Point May on the Burin Peninsula. In cases such as this, the transmission circuits are unlikely to ever be accommodated on the Aliant non-joint use line. In other cases Newfoundland Power has utilized its transmission line poles to support its distribution facilities. For technical reasons Aliant does not often use Newfoundland Power transmission poles to support its telecommunications cables due to the risk to the telecommunications cable created by the high voltage transmission circuits. This is the situation along the Hanson Highway in the Stephenville area. In still other cases Aliant has poles installed at the back of a subdivision and Newfoundland Power has followed the road right of way and installed a line in the front of the lots in the subdivision. This situation exists in the Cornwall Heights subdivision in St. John's. These types of situations are legacies of historical municipal planning practices and unlikely to occur in today's planning environment. PUB-13 Page 2 of 2 While existing non-joint use poles of 30ft and shorter lengths are unlikely to be used to any great extent for joint use, the overall proportion of non-joint use poles has been steadily decreasing. In the 10 year period ending in 2000 the percentage of non-joint use poles dropped from 20% to 15%. Newfoundland Power anticipates this trend will continue although not necessarily at the same pace as the last 10 years. 13.2 See 13.1 13.3 In general there are no distribution lines in the areas of non-joint use poles that are used to distribute electricity to the same customers who are being served by non-joint use poles. There are minor exceptions to this in some areas that were previously served by Terra Nova Tel and a limited number of subdivisions in the St. John's area such as Cornwall Heights. There are no records available to determine the number of non-joint use poles located in areas where there are no distribution lines. f PUB-14 Page 1 of 1 Q. PUB 14.0 14.1 Article XIX, 19.03 (a) of the Joint Use Agreement, effective January 1, 1994 states that "This Agreement may be terminated by at least twelve (12) months notice in writing...". Has such notice been given of the termination of this agreement? What is the date of this notice? Provide a copy. 14.2 What actions under Article XIX, 19.04 have occurred that make the 1994 Joint Use Agreement no longer applicable? A. 14.1 Neither Aliant Telecom Inc. nor Newfoundland Power has given written notice to the other of termination pursuant to Clause 19.03 (a) of the Joint Use Agreement. Termination of the Joint Use Agreement is provided for in Clause 9.1 of the Support Structures Purchase Agreement made between Newfoundland Power and Aliant Telecom Inc. as of January 1, 2001. 14.2 None of the events itemized in Clause 19.04 of the Joint Use Agreement have occurred. However, development of the joint use relationship between Aliant Telecom Inc. and Newfoundland Power Inc. has resulted in a mutual desire that one party, Newfoundland Power, should own and operate utility poles. Exhibit NP-3, a letter from Aliant to Newfoundland and Labrador Hydro is one indication of this. a td PUB-15 Page 1 of 1 Q. PUB 15.0 15.1 Provide copies of the approved operating budget of Newfoundland Power Inc., for 2001. A. The 2001 operating budget of Newfoundland Power which has been approved by the Company's Board of Directors is reflected in the 2001 proforma income statement contained in Appendix A of Response to Information Request PUB 1.0. s'•a PUB-16 Page 1 of 1 PUB 16.0 16.1 Provide the analysis used to arrive at the figure of $347.88 for a non-joint use poles as referred to in the Response to Information Request PUB 5.3. A. Aliant Telecom provided the figure of $347.88 for non-joint use poles being sold to Newfoundland Power. As was pointed out in the Response to Information Request PUB-6.0, paragraph 3 Aliant's accounting records do not distinguish between the cost of joint use and non-joint use poles. Newfoundland Power has reviewed the estimate of $347.88 for non-joint use poles and considers it to be a reasonable allocation. td I File No. HYDRO NEWFOUNDLAND AND LABRADOR HYDRO Head Office: St. John's, Newfoundland P.O. Box 12400 A1B 4K7 Telephone (709) 737-1400 • Fax (709) 737-1231 • Website: www.nlh.nf.ca June 1, 2001 Board of Commissioners DELIVERED BY HAND of Public Utilities P.O. Box 21040 Prince Charles Building 120 Torbay Road St. John's, NF A1A 5B2 IJ j Attention: Mr. J. Randall Pelletier Legal Counsel Ladies and Gentlemen; Re: Newfoundland Power Inc.'s (the 'Applicant") Application to acquire the support structures of Aliant Telecom Inc. located in the Applicant's service territory Please find enclosed herewith are five (5) copies of Newfoundland and Labrador Hydro's Responses to Information Requests PUB-NLH 1.0 and PUB-NLH 2.0 in relation to the above noted matter. For convenience we have provided the Responses on 3-hole punched paper. We trust the enclosed are found to be in order. Yours very truly, yO4// . Wayne EkChamberlain SeniorXegal Counsel cc. Peter Alteen and Ian F. Kelly, Q.C. Newfoundland Power Inc. Glen D. Belbin Messrs. Hey wood, Kennedy, Belbin ffi PUB-NLH 1.0 Page 1 of 1 Q. PUB-NLH 1.0 1.1 Please provide a copy of the Pole Ownership Agreement dated 1 January 1996 between Newfoundland Telephone Company and Newfoundland and Labrador Hydro Corporation. A. 1.1 Enclosed id the Pole Ownership Agreement made as of January 1, 1996 between Newfoundland Telephone Company Limited and Newfoundland and Labrador Hydro. NEWFOUNDLAND TELEPHONE COMPANY LIMITED AND NEWFOUNDLAND AND LABRADOR HYDRO POLE O WNERSHIP A GREEMENT JANUARY 1, 1996 HYDRO Newfoundland Telephone I f CONTENTS • ARTICLE TITLE PAGE • PREAMBLE 1 I DEFINITION OF TERMS 3 * II JOINT USE POLE INSTALLATION 7 I Ml OWNERSHIP AND SALE OF POLE UNITS 8 m IV SELLING PRICE OF POLE UNITS 14 V CONDITIONS OF SALE 15 I VI INVOICES AND PAYMENTS 21 I VII LIABILITIES AND DAMAGES 22 VIM DEFAULTS 23 ^ IX IMPOSSIBILITY OF PERFORMANCE 24 | X ASSIGNMENT OF RIGHTS 26 - XI NOTICES 27 XII WAIVER OF TERMS OR CONDITIONS 30 I XIII PAYMENT OF TAXES 31 | XIV ARBITRATION 32 XV TERRITORIES COVERED BY THIS AGREEMENT 33 ™ XVI TERM OF AGREEMENT 34 I XVII REGULATORY IMPACT 35 _ XVIII MISCELLANEOUS PROVISIONS 36 ( EXECUTION OF AGREEMENT 37 I I I f t POLE OWNERSHIP AGREEMENT THIS AGREEMENT made at St. John's, in the Province of Newfoundland as of the • 1st day of January, 1996. I BETWEEN NEWFOUNDLAND TELEPHONE COMPANY LIMITED, a body duly incorporated under the laws of the Province of Newfoundland, having its head office at St. John's, in the • Province of Newfoundland, hereinafter called "Newfoundland Telephone", | OF THE ONE PART I AND NEWFOUNDLAND AND LABRADOR HYDRO, a Corporation constituted by statute and an agent of Her Majesty the Queen I in right of the Province of Newfoundland, having its head office at St. John's, in the Province of Newfoundland, hereinafter called "Hydro", ^ OF THE OTHER PART I WHEREAS the Parties have entered into a Joint Use Agreement dated as of the | 1st day of January, 1993; I AND WHEREAS the Parties have agreed to various ownership ratios for Poles m being jointly used by the Parties and to certain provisions regarding the transfer of Poles from Hydro to Newfoundland Telephone when required to achieve the appropriate levels of Pole ownership; I I I I 1 f NOW THEREFORE, in consideration of the premises and of the mutual covenants I herein contained, the Parties hereby covenant and agree each with the other as A follows: I I I I I f I I i i i I i i /2 I ARTICLE 1 - DEFINITION OF TERMS f. 1.01 The following definitions shall apply in this Agreement unless the context I clearly requires otherwise: I ANCHOR means and includes all the physical components, I excluding guys, used for anchoring a Pole. I ANNUAL OWNERSHIP means the percentage of the total Joint Use Poles PERCENTAGE I which is the annual ownership objective for I Newfoundland Telephone as set out in this I Agreement. t BOARD means the Board of Commissioners of Public I Utilities of Newfoundland. I CRTC means the Canadian Radio-television and I Telecommunications Commission. 1 I GOVERNING BODY means any body having legislative or regulatory I powers affecting the Parties and includes the Board, the CRTC, and Federal, Provincial, /3 I I ARTICLE 1 - DEFINITION OF TERMS f Municipal or other authority having jurisdiction I over highways or other public places, acting under I legislative authority to carry out duties in maintaining and improving public highways or I other public places. I GROUNDING SYSTEM means the ground rod or ground coil, wire and all I physical components required to connect the I neutral conductor to earth. I JOINT OWNERSHIP means the ratio of the percentage of total Joint RATIO Use Poles owned by Hydro to the percentage of I total Joint Use Poles owned by Newfoundland Telephone. I JOINT USE means the use of both Parties and, in relation to i Pole Units, means Pole Units used by both Parties, in accordance with the terms of the Joint Use i Agreement. i i /4 I ARTICLE 1 - DEFINITION OF TERMS JOINT USE AGREEMENT means the agreement entered into by the Parties i to govern the Joint Use of Pole Units bearing the i date January 1, 1993. i JOINT USE COMMITTEE means the liaison committee established and I maintained under the Joint Use Agreement. i JOINT USE RATIO means the ratio agreed by the Parties as provided 1 in ARTICLE VIII of the Joint Use Agreement. I JOINT USE REQUEST means the form provided in SECTION 16 - FORMS of the Joint Use Agreement. i NET BOOK VALUE means the original investment as carried on the i books of the Owner less accumulated depreciated i expense for that investment. i OTHERS means persons, firms or corporations who are not i a Party. i I /5 i 1 JMT. ARTICLE 1 - DEFINITION OF TERMS T OWNER means the Party which owns or controls the Pole 1 Unit. I PARTY means a Party to this Agreement. 1 1 PERMIT means the instrument in writing by which the 1 Owner authorizes Joint Use of a Pole Unit. 1 POLE means a utility pole owned by a Party and used to t distribute electrical power or telecommunications signals. I 1 POLE LINE means two or more Poles installed in a sequence I to service a particular area. 1 POLE UNITS means Poles, Anchors, Grounding Systems, Pole I cribs, and related rights-of-way. 1 1 TENANT means the Party making, applying for or having the permission to make Joint Use of a Pole 1 belonging to the other Party. /6 I m ARTICLE II - JOINT USE POLE INSTALLATION \ 2.01 In each calendar year, in accordance with ARTICLE VII - OWNERSHIP of p the Joint Use Agreement, Hydro will afford Newfoundland Telephone ft opportunities to install Joint Use Pole Units or Pole Units projected for Joint Use. Hydro shall notify Newfoundland Telephone of such • opportunities. The notification shall include a description of the • specifications of Hydro including the time frame for installation. I 2.02 Upon receipt of notification under Clause 2.01, Newfoundland Telephone | shall elect whether to install the Pole Unit. If Newfoundland Telephone is M unwilling or unable to install the Pole Unit as specified by Hydro, it shall so notify Hydro. The notification shall include a reason for not installing • the Pole Unit. Newfoundland Telephone shall not be restricted from • putting forward at any time prior to arbitration, and relying upon during ^ arbitration, additional reasons for not installing the Pole Unit. 2.03 A notification under Clause 2.01 or Clause 2.02 shall be in writing, but may be verbal if subsequently confirmed in writing, provided always that the written notification is deemed to prevail over verbal notification in the case of a conflict. I 2.04 Newfoundland Telephone will be expected to take advantage of all T reasonable opportunities to install Joint Use Pole Units. 1 1 - ARTICLE III - OWNERSHIP AND SALE OF POLE UNITS ( 3.01 (a) There shall be a determination of the number of Joint Use Poles | owned by each Party as of December 31 of each year that this • Agreement is in force. • (b) The Parties agree that as of December 31, 1994, the current best H estimate of the Ownership of Joint Use Poles was: I Poles owned by Hydro 23,450 £ Poles Owned by Newfoundland Telephone 3,140 f Total Joint Use Poles 26,590 ^ From these numbers the Joint Ownership Ratio as of December 31, • 1994, was 88.19% Hydro, 11.81% Newfoundland Telephone. At — any time, this estimate of the Ownership of Joint Use Poles may be adjusted to reflect any better estimate to which both Parties may | agree. I • (c) Subject to, and in accordance with, the terms of this Agreement, the » Parties agree that: I I i /8 I I « ARTICLE III - OWNERSHIP AND SALE OF POLE UNITS T (i) As of December 31, 1995, the Annual Ownership Percentage | for Newfoundland Telephone shall be the percentage of the • total Joint Use Poles that it owned as of December 31, 1994, plus 2%. A' • (ii) The Annual Ownership Percentage for Newfoundland A Telephone for each year end after 1995, up to and including December 31, 2000, shall be the percentage of the total Joint | Use Poles that Newfoundland Telephone owned as of lk December 31 of the previous year, after any sale under this r Agreement, plus 2% in year 1996, 2% in year 1997, 3% in *•• year 1998, 3% in year 1999, and 3% in year 2000. I _ 3.02 Where the annual determination of Joint Use Poles owned by each Party shows that the Annual Ownership Percentage has been achieved or J| surpassed by Newfoundland Telephone, then Hydro shall not be required 4r to sell any Pole Units to Newfoundland Telephone for that year. • • 3.03 Where, as of December 31 of each year, Newfoundland Telephone has fl not achieved the Annual Ownership Percentage, then subject to Clauses 3.04 and 3.05 below, Newfoundland Telephone may elect to buy from /9 ! I I f ARTICLE III - OWNERSHIP AND SALE OF POLE UNITS Hydro, and Hydro shall sell, the number of Joint Use Pole Units P necessary for Newfoundland Telephone to equal the Annual Ownership ft Percentage, or some other lesser number of Joint Use Pole Units. " 3.04 Where the annual determination of Joint Use Poles owned by each Party • shows that Newfoundland Telephone has not achieved the Annual § Ownership Percentage and Newfoundland Telephone agrees in writing that it failed to take advantage of a "reasonable opportunity" to place P Pole Units, then the number of Pole Units involved shall be deducted M from the number of Pole Units to be sold under Clause 3.03. However, if Hydro alleges that Newfoundland Telephone has failed to take •> advantage of a reasonable opportunity to place Pole Units but • Newfoundland Telephone does not agree with the allegation, then the _ matter shall be referred to arbitration and Clause 3.05 shall apply. I J 3.05 (a) Any matter referred to arbitration under Clause 3.04 above shall * require the arbitrator to decide if Newfoundland Telephone failed to take advantage of a "reasonable opportunity" to install a Pole Unit. • Each Pole Unit must be either a Joint Use Pole Unit, or a Pole Unit fl projected for Joint Use. If the arbitrator finds that Newfoundland Telephone did fail to take advantage of a "reasonable opportunity", i /10 I i _ ARTICLE III - OWNERSHIP AND SALE OF POLE UNITS T then it must next decide if Newfoundland Telephone raised a "Bona 9 Fide Dispute" by its objection to installation. A "Bona Fide Dispute" ft is a dispute which is not frivolous and which raises a new question as to what constitutes a "reasonable opportunity" to place a Pole • Unit. I A (b) Where the arbitrator finds that Newfoundland Telephone was not presented with a "reasonable opportunity", then the number of Pole P Units to be sold under Clause 3.03 shall not be affected. I (c) Where the arbitrator finds that Newfoundland Telephone was • presented with a "reasonable opportunity" but raised a "Bona Fide • Dispute", then the number of Pole Units affected will be deducted ^ from the number of Pole Units to be sold that year but the Annual Ownership Percentage for the following year shall be increased by | the number of Pole Units so deducted. I (d) Where the arbitrator finds that Newfoundland Telephone was I •< presented with a "reasonable opportunity" and that Newfoundland fl Telephone failed to raise a "Bona Fide Dispute", then the number of I I ARTICLE III - OWNERSHIP AND SALE OF POLE UNITS Pole Units affected will be deducted from the number of Pole Units to be sold that year. I 3.06 The effective date of the sale of Pole Units under this Agreement shall be • deemed to be no later than December 31 of the effective year of the • determination of Pole Ownership referred to in Clause 3.01. I 3.07 In determining which Pole Units shall be sold to Newfoundland 0 Telephone, due regard shall be given to: I (ii) the objective that the Joint Use Poles of each Party shall be made — more representative of the total Joint Use Pole population including age, size, condition, location (urban or rural), Island or Labrador, J| communities accessible by road or communities not accessible by m road; and • (iii) the joint ownership objectives stated in Clause 7.06 of ARTICLE • VII - OWNERSHIP of the Joint Use Agreement. f I /12 I 1 m ARTICLE III - OWNERSHIP AND SALE OF POLE UNITS 7 3.08 The impact on customers of Hydro resulting from installation and m maintenance of Pole Units by Newfoundland Telephone, or transfer of ft Pole Units to Newfoundland Telephone, is to be no more adverse than if Hydro had installed and maintained the Pole Units. • 3.09 From time to time and at any time as the Parties may mutually consent, • Hydro may sell to Newfoundland Telephone and Newfoundland Telephone may purchase from Hydro any Joint Use Pole Unit. However, P in any calendar year the total number of Joint Use Pole Units sold under M this Clause 3.09 shall not exceed ten percent (10%) of the total number of Joint Use Pole Units. I • 3.10 Commencing in the calendar year following the attainment of a Joint ^ Ownership Ratio of 60% Hydro, 40% Newfoundland Telephone, the Parties shall maintain the Joint Ownership Ratio by sharing opportunities | to install and installing Joint Use Pole Units or Pole Units projected for f| Joint Use in the appropriate ratio. 1 I I I I IB ARTICLE IV - SELLING PRICE OF POLE UNITS ( 4.01 The purchasing Party shall pay to the selling Party for each Pole Unit sold 9 under this Agreement the Net Book Value of the Pole Unit, together with • interest from January 1st next following the effective date of the sale, at a monthly rate of one twelfth (1/12) of the annual rate determined as the ™ lowest current prime commercial lending rate during that month at the • Bank of Nova Scotia plus one percent (1%). I 4.02 Upon request made prior to the sale, the selling Party will provide the P purchasing Party with the information and documentation reasonably • required by the purchasing Party to assess and review the selling Party's r Net Book Value of the Pole Unit. If the Parties are unable to agree that •>-• the Net Book Value is correct, then the matter shall be referred to I arbitration and no invoice shall be issued for that Pole Unit until an I arbitration decision is rendered. I I I I I i /14 I I ARTICLE V - CONDITIONS OF SALE 1 5.01 The procedure for the sale of Pole Units to achieve the Annual 1 Ownership Percentage for 1995 shall be scheduled to occur on or before I the following dates: I January 31, 1996 The Parties shall complete the necessary Pole Unit 1 counts and agree on the quantity of the sale. I February 28, 1996 The selling Party shall identify suitable Pole Units I for sale to the purchasing Party. I March 31, 1996 The purchasing Party shall complete inspection of I the Pole Units proposed to be sold to ensure I suitability; the selling Party shall deliver an invoice I to the purchasing Party. I April 30, 1996 The purchasing Party shall pay the selling Party for I the Pole Units, as provided in ARTICLE IV - SELLING PRICE OF POLE UNITS. I I June 30, 1996 The transaction shall be completed and the duly I executed Bill of Sale shall be delivered in such /15 I I ARTICLE V - CONDITIONS OF SALE I form and together with any other documentation I that the purchasing Party may require, transferring Ownership to the purchasing Party. I I The Parties shall make all reasonable efforts to adhere to this schedule. I 5.02 The procedure for the sale of Pole Units to achieve the Annual Ownership I Percentage for years subsequent to 1995 shall be scheduled to occur on or I before the following dates: I March 31 of the The selling Party shall identify suitable Pole Units I subject year for sale to the purchasing Party. The number of Pole Units identified shall be less than or equal to I 4% of the total Joint Use Poles as of December 31 I of the previous year. I August 31 of The purchasing Party shall complete inspection I the subject year of the Pole Units identified to ensure suitability. I I i /16 I I ARTICLE V - CONDITIONS OF SALE f September 30 of In the event that the purchasing Party's rejection I the subject year rate is greater than 25% of the identified Pole Units, the selling Party shall identify additional I suitable Pole Units for sale to the purchasing Party, I where the total number of Pole Units identified shall I be less than or equal to 4% of the total Joint Use Poles as of December 31 of the previous year. I I November 30 of The purchasing Party shall complete inspection of the subject year the additional Pole Units identified to ensure I suitability. I January 31 of The Parties shall complete the necessary Pole Unit the year following counts and agree on the final quantity of the sale. I the subject year If upon completion of the necessary Pole Unit I counts, it becomes necessary to sell more I Pole Units than have been previously identified and found to be suitable, the appropriate number of I additional Pole Units shall be identified by the I selling Party on this date. I /17 I I ARTICLE V - CONDITIONS OF SALE February 28 The selling Party shall deliver an invoice to the i of the year following purchasing Party, i the subject year i March 31 of the The purchasing Party shall pay the selling Party for i year following the Pole Units, as provided in ARTICLE IV - i the subject year SELLING PRICE OF POLE UNITS. i April 30 of the year The transaction shall be completed and the duly i following the subject executed Bill of Sale shall be delivered in such form year and together with any other documentation that the purchasing Party may require, transferring i Ownership to the purchasing Party. i i The Parties shall make all reasonable efforts to adhere to this schedule. i 5.03 The selling Party shall at the reasonable request and expense of the i purchasing Party, execute and deliver all such further acts, deeds and i assurances as may be reasonably required for more perfectly assuring the transfer and sale of the Pole Units to the purchasing Party. /18 i I f ARTICLE V - CONDITIONS OF SALE I 5.04 The selling Party shall sell to the purchasing Party under this Agreement, I only those Pole Units of which, at the actual date of sale, it is rightfully and _ absolutely possessed of and entitled to, and the Pole Units shall be free and clear of any liens and encumbrances at the actual date of sale, except for I any liens or encumbrances that may be accepted in writing by the • purchasing Party. I 5.05 The purchasing Party shall at all times after the actual date of sale have, I hold, possess and enjoy the Pole Units for its own use and benefit without any hindrance, interruption, claim or demand whatsoever of, from or by the ^ selling Party, or any other person, except as may be provided in the Joint I Use Agreement. 5.06 (a)The selling Party shall list the Pole Units which it identifies for sale, | under Clause 5.02. Pole Units which are found not to be suitable • under Clause 5.02 shall be deleted from the list. The Pole Units to be sold shall be selected from the revised list, beginning with the first Pole • Unit on the list and moving downward on the list until the number of I Pole Units to be sold has been reached. I • /19 I I • ARTICLE V - CONDITIONS OF SALE \ (b) Once payment for any Pole Unit has been made to the selling Party, I the selling Party shall become the Tenant. I (c) Notwithstanding Sub-section 5.06(b), the purchasing Party shall be • responsible for any damage caused to or by a Pole Unit that is sold I under this Agreement from either (i) the actual date that Pole Unit is _ identified for sale by the selling Party, or (ii) January 1 of the year following the subject year, whichever date is later. I • 5.07 With respect to any Pole Unit sold under this Agreement, the purchasing Party shall remove from the Pole Unit any indication or sign of ownership by •"••- the selling Party. I I I I I I I g /20 I I m ARTICLE VI - INVOICES AND PAYMENTS [ 6.01 Accounts shall be deemed overdue if not paid within thirty (30) days | after receipt of the invoice. The Parties shall pay interest charges on ft overdue accounts at a monthly rate of one twelfth (1/12) of the annual rate determined as the lowest current prime commercial lending rate ™ during that month at the Bank of Nova Scotia plus one percent (1%). I Such interest charges shall be compounded at the monthly rate for each month or part month the account remains overdue. — 6.02 Upon completion of work performed by either Party, the expense of I which is to be borne wholly or in part by the other Party, the Party performing the work shall, after its completion, deliver to the other Party •••• an invoice showing the work completed and an itemized list of labour, I materials and other expenses. In the event that a project is not m completed within thirty (30) days, progress billings indicating work completed may be rendered monthly. I • 6.03 Where, under this Agreement, it is considered advisable by agreement of both Parties, in the interest of economy, to use unit charges as • representing the cost of certain operations in lieu of actual costs, nothing I in the foregoing terms of this Article VI shall preclude the practice of so doing. /21 i I - ARTICLE VII - LIABILITIES AND DAMAGES ( 7.01 This Agreement is intended for the mutual benefit and protection of the I Parties and non-conformity therewith shall not create any presumption of A fault on the part of either Party in favour of any Others. • 7.02 Each Party shall bear its own losses and costs where a claim or demand I does not arise from the negligence of the other Party, its agents or _ employees. I I r i i i i i i /22 i I m ARTICLE VIM - DEFAULTS ( 8.01 Where either Party defaults in any of its obligations under this | Agreement, the Party not in default may give the other Party written • notice of such default. If such default continues thirty (30) days after notice thereof, the Party not in default may, in addition to any other • remedy it may have, forthwith terminate this Agreement provided, I however, that nothing contained in this Clause 8.01 shall affect any — rights or obligations which either Party may have under any Federal or Provincial legislation. I •j 8.02 A default under the Joint Use Agreement shall be deemed to be a default under this Agreement and a default under this Agreement shall be • deemed to be a default under the Joint Use Agreement. I I I I I I I I /23 I I • ARTICLE IX - IMPOSSIBILITY OF PERFORMANCE T 9.01 Where the performance by either of the Parties of any of their respective I obligations as contained in this Agreement shall to any extent be ft prevented, restricted, delayed or interfered with by reason of any of the following: • (i) war, revolution, civil commotion, riots, acts of public enemies, _ blockade or embargo, any strike, lockout or other labour difficulty or work stoppage, explosion, epidemic, fire, flood, freeze, severe P winter conditions, ice blockage, acts of God, or order of any • Governing Body having jurisdiction; •*- (ii) the prohibition, restraint, restriction or prevention from installing, I constructing or replacing Pole Units or making available any _ portion of any such Pole Units by any statute law, by-law, ordinance, regulations, judgment, or by the property rights of P Others, or the removal, or threat of removal of any easement, • right-of-way, servitude or other privilege; • then such Party shall, on written notice to the other, be excused from the I performance of such obligations but only to the extent of the period of _ such prevention, restriction, delay or interference, provided that the / provisions contained in this Article IX shall not apply to the obligations of I /24 I I m ARTICLE IX - IMPOSSIBILITY OF PERFORMANCE { such Party to pay the amounts required to be paid to the other Party in P the manner and at the time provided in this Agreement. I I I I I I I I I I I I I I I /25 I I « ARTICLE X - ASSIGNMENT OF RIGHTS / 10.01 Except as otherwise provided in this Agreement, neither Party shall P assign or otherwise dispose of this Agreement, or any of its rights or m interests hereunder in any of the Joint Use Pole Units to Others without the written consent of the other Party which shall not be unreasonably ™ withheld, provided, however, that nothing herein contained shall prevent I or limit the right of either Party to mortgage any or all of its property, _ rights, privileges and franchises, or lease or transfer any of them to another corporation organized for the purpose of conducting a business p of the same general character as that of such Party, or to enter into any •j merger or consolidation and in the case of the foreclosure of such mortgage, or in the case of such lease, transfer, merger or consolidation, Ifc its rights and obligations hereunder shall pass to and be acquired and I assumed by the purchaser on foreclosure, or the transferee, lessee, assignee, or merged or consolidated company, as the case may be. I I I I I i /26 I I m ARTICLE XI - NOTICES T 11.01 (a) (i) Any notice required to be given under this Agreement shall be in | writing from one Party's representative on the Joint Use • Committee to the other Party's representative on the Joint Use Committee and shall be sufficiently given if sent by registered ™ mail, sent by facsimile transmission, or delivered by hand and • addressed, in the case of Hydro, to its head office, St. John's, — Newfoundland, and in the case of Newfoundland Telephone, to its head office, St. John's, Newfoundland. I • (ii) A notice sent by registered mail is deemed to have been given on the third business day following such mailing. • (iii) A notice sent by facsimile transmission, shall be deemed to have _ been given on the business day following the transmission of the communication. I • (iv) A notice delivered by hand shall be deemed to have been given on the date of actual delivery. I I • /27 I I _ ARTICLE XI - NOTICES 7 (b) Where the notice is a notice required under ARTICLE II - JOINT USE J POLE INSTALLATION, notwithstanding Clause 11.01 (a), it shall not • be effective unless given from and to: • (i) on behalf of Newfoundland Telephone, the applicable one of: • - Manager Outside Plant East • P.O. Box 2110 — St. John's, Newfoundland and Labrador I A1C5H6, or Manager Outside Plant West I P. 0. Box 98 Corner Brook, Newfoundland and Labrador I A2H 6C5, or Manager Outside Plant Central W" P. O. Box 3000 •-• Gander, Newfoundland and Labrador A1V2K6 • (ii) on behalf of Hydro, the applicable one of: I - Manager, Central Region TRO P. 0. Box 2002 I Bishop's Falls, Newfoundland and Labrador A0H 1 CO, or I Manager, Western Region TRO P. O. Box 234 Stephenville, Newfoundland and Labrador | A2Z 2Z4, or Manager, Northwest Region TRO P. 0. Box 129 I Port Saunders, Newfoundland and Labrador A0K 4H0, or /" - Manager, Northern Region TRO | /28 I I m ARTICLE XI - NOTICES { Viking Mall St. Anthony, Newfoundland and Labrador I AOK 4S0, or I Manager, Labrador Region TRO Bag 3017, Station "B" Happy Valley - Goose Bay Newfoundland and Labrador • AOP1EO I with copies sent to the Parties' representatives on the Joint Use Committee. I I (c) Where the notice is a notice of termination or default, • notwithstanding Clause 11.01 (a) above, it shall not be effective unless given from the President of one Party to the President of the I •"-- other Party with copies sent to the Parties' representatives on the I Joint Use Committee. 11.02 Either Party may at any time, and from time to time, change its address for I notice, or the person designated to receive such notice, provided in this • Article XI by giving notice in writing, as provided in this Article XI, to the other Party of this change. I I I i /29 I I I ARTICLE XII - WAIVER OF TERMS OR CONDITIONS f 12.01 The failure of either Party to enforce any of the terms or conditions of this • Agreement shall not constitute a general or specific waiver or • relinquishment of any such terms or conditions, but the same shall be and I I I I t I I I I I I ! /30 i I m ARTICLE XIII - PAYMENT OF TAXES ( 13.01 The purchasing Party will be solely responsible for any and all sales tax I payable by reason of the sale of Pole Units by the selling Party to the • purchasing Party. The selling Party shall ensure that all other taxes, rates and assessments are fully paid and satisfied as of the actual date of sale. I I I I I I I I I I I I I /31 I I a ARTICLE XIV - ARBITRATION /" 14.01 (a) Where any dispute or difference arises as to any matter or thing | relating to or in respect of this Agreement, such dispute or difference • shall be referred to arbitration in accordance with the provision of The Arbitration Act, R.S.N. 1990, Chapter A-14, as amended, and shall be • submitted to a sole arbitrator agreed upon between the Parties. The • decision of the sole arbitrator shall be final and binding upon the — Parties. | (b) Where the Parties are unable to agree upon a sole arbitrator, such • dispute or difference shall be referred to three (3) arbitrators. One (1) arbitrator shall be appointed by each Party, and the remaining •v arbitrator, who shall be chairperson, shall be selected by the • arbitrators appointed as herein provided. The decision of any two (2) arbitrators shall be final and binding upon the Parties. _ (c) The costs of any such arbitration, including reasonable compensation • for the arbitrator, or arbitrators, shall be borne and paid equally by the Parties, or as the arbitrator or arbitrators may otherwise direct. I I I i /32 i I ARTICLE XV - TERRITORIES COVERED BY THIS AGREEMENT 15.01 The terms and provisions of this Agreement shall apply to Pole Units in the territories in which the Joint Use Agreement applies. I I I I I I t I I I I I I I i /33 i I m ARTICLE XVI - TERM OF AGREEMENT T 16.01 Regardless of the date of execution, this Agreement shall continue in force | for the period from January 1, 1996, to December 31, 2000, and shall not • be terminable during such period except as stated elsewhere in this Agreement. I I 16.02 After December 31, 2000, this Agreement shall continue in full force and _ effect indefinitely unless and until terminated by notice in writing as provided in this Article XVI. I • 16.03 (a) This Agreement may be terminated by at least twelve (12) months notice in writing, given at any time following the commencement date it of this Agreement, by either Party to the other, provided that such I notice of termination may not specify a termination date which is _ prior to December 31, 2000. | (b) This Clause 16.03 does not apply to a notice of termination given • under either ARTICLE VIII - DEFAULTS or ARTICLE XVII - REGULATORY IMPACT. I I I /34 I k I • ARTICLE XVII - REGULATORY IMPACT { 17.01 The Parties recognize that Newfoundland Telephone is subject to | regulation by the CRTC. Newfoundland Telephone shall provide notice to • Hydro of any regulatory hearing scheduled by the CRTC which involves consideration of any term of this Agreement. Where the CRTC makes an • order affecting any term of this Agreement, then, subject to Clause I 17.03, this Agreement shall be deemed to be modified to comply with _ such order. I 17.02 The Parties recognize that Hydro is in some respects subject to regulation • by the Board. Hydro shall provide notice to Newfoundland Telephone of any hearing scheduled by the Board which involves consideration of any I •" term of this Agreement. Where the Board makes an order, or I recommendation that is subsequently accepted by the Newfoundland — Lieutenant-Governor in Council, affecting any term of this Agreement, then, subject to Clause 17.03, this Agreement shall be deemed to be | modified to comply with such order or recommendation. I 17.03 Where an order of the Board or the CRTC results in a termination under • Article XX of the Joint Use Agreement, then this Agreement shall be I deemed to terminate on the same date as the Joint Use Agreement. I I /35 I • ARTICLE XVIII - MISCELLANEOUS PROVISIONS { 18.01 This Agreement shall enure to the benefit of and shall be binding upon the I successors, and subject to ARTICLE X - ASSIGNMENT OF RIGHTS upon • the assigns of the Parties respectively. • 18.02 The headings used in this Agreement are for information purposes only I and are not to be construed as part of this Agreement. 18.03 Words in this Agreement importing the singular number shall include the plural and vice versa. I I I I I I I I I I /36 I I f IN WITNESS WHEREOF the Parties have caused these presents to be executed in I duplicate and their corporate seals to be hereunto affixed, attested by the signatures of their respective officers duly authorized in that behalf. I THE COMMON SEAL of Newfoundland )NEWFOUNDLAND TELEPHONE I Telephone Company Limited was )COMPANY LIMITED hereunto affixed by its duly authorized officers at St. John's, I Newfoundland, this 'x4t day of I in the presence of: )President & Chief Executive Officer I 6.- Cj XXSly—' I ^Operations & I ) Technology I THE COMMON SEAL of Newfoundland )NEWFOUNDLAND AND LABRADOR and Labrador Hydro was hereunto )HYDRO I affixed by its duly authorized officers at St. John's, Newfoundland, this day of , 1995, I in the presence of: President & Chief Executive Officer I )Vice-President - Transmission and I )Rurai Operations I ? /37 I I PUB-NLH 2.0 Page 1 of 1 Q. PUB-NLH 2.0 2.1 Please provide a copy of the Joint Use Agreement dated 1 January 1993 between Newfoundland Telephone Company and Newfoundland and Labrador Hydro Corporation. A. 2.1 Enclosed is a copy of the Joint Use Agreement made as of January 1, 1993 between Newfoundland Telephone Company Limited and Newfoundland and Labrador Hydro. NEWFOUNDLAND TELEPHONE COMPANY LIMITED AND NEWFOUNDLAND AND LABRADOR HYDRO JOINT USE A GREEMENT JANUARY1,1993 Newfoundland Te|ephone c. I CONTENTS I ARTICLE TITLE " PREAMBLE 1 I I TERRITORY AND SCOPE OF AGREEMENT 3 - II DEFINITION OF TERMS 6 III JOINT USE COMMITTEE 10 I IV DEALING WITH PROPERTY 11 • V SPECIFICATIONS 12 VI DIVISION OF COSTS 13 ^ VII OWNERSHIP 14 I VIM RENTALS 17 - IX RIGHTS WITH RESPECT TO OTHER PARTIES 18 X LIABILITIES 21 I XI DEFAULTS 27 | XII IMPOSSIBILITY OF PERFORMANCE 29 XIII ASSIGNMENT OF RIGHTS 31 • XIV SERVICE OF NOTICES 32 I XV INVOICES AND PAYMENTS 34 XVI WAIVER OF TERMS OR CONDITIONS 36 i i I f I ARTICLE TITLE PAGE XVII PAYMENT OF TAXES 37 I XVIII ARBITRATION 38 1 XIX TERM OF AGREEMENT 39 XX REGULATORY IMPACT 41 I XXI MISCELLANEOUS PROVISIONS 44 I EXECUTION OF AGREEMENT 45 I 1 I I I I I I I I JOINT USE AGREEMENT I I THIS AGREEMENT made in duplicate as of January 1, 1993. I - BETWEEN NEWFOUNDLAND TELEPHONE COMPANY LIMITED, a body g duly incorporated under the laws of the Province of Newfoundland and having its head office at St. John's, in the • Province of Newfoundland, (hereinafter called "Newfoundland Telephone") I OF THE ONE PART AND NEWFOUNDLAND AND LABRADOR HYDRO, a Corporation constituted by statute and an agent of Her Majesty the Queen in right of the Province of Newfoundland, and having its head office I at St. John's, in the Province of Newfoundland, _ (hereinafter called "Hydro") OF THE OTHER PART I WHEREAS Hydro and Newfoundland Telephone desire to enter into a Joint Use I agreement with respect to Joint Use Pole Units when and where Joint Use shall I provide operating advantages and economic benefit to the Parties hereto and their respective customers; I i /l I I f p WHEREAS the conditions determining the necessity or desirability of Joint Use • depend upon the service requirements to be met by each Party including consideration of safety and economy, and each should be the sole judge of what the ** character of its circuits should be to meet its service requirements and as to whether • or not these service requirements can properly be met by the Joint Use of Pole Units; I WHEREAS this Agreement sets forth only the basic terms of Joint Use and does not | provide for the detailed administration thereof, and it is intended that Administrative • Practices shall be formulated and administered by a Joint Use Committee as hereinafter provided; L I AND WHEREAS the Administrative Practices attached as Schedule 'A' to this m Agreement provide for the detailed administration of the Agreement through a Joint Use Committee; I • NOW THEREFORE, in consideration of the premises and of the mutual covenants herein contained, the Parties hereto for themselves, their successors and assigns, do • hereby covenant and agree each with the other as follows: I Ii li I I I ARTICLE 1 - TERRITORY AND SCOPE OF AGREEMENT • 1.01 The Parties shall in accordance with the Agreement: • (a) co-operate in the planning, design, installation and maintenance of Pole Units for Joint Use with a view to providing maximum economic and ™ service advantages to the customers of both Parties; I _ (b) continue Joint Use of Pole Units which are on the date of this Agreement jointly used by the Parties; I • (c) permit the Joint Use of Pole Units which are not on the date of this Agreement jointly used by the Parties; I I (d) discontinue the Joint Use of Pole Units. 1.02 JOINT USE POLICY § (a) Each Party agrees to the policy of the Joint Use of Pole Units whenever • such Joint Use is desirable in the judgment of both Parties; i (b) Each Party is to determine the requirements of its own service and the I character, design and construction of its own Attachments on Joint Use Poles , subject to the provisions and specifications of the Administration ( I I I I ARTICLE 1 - TERRITORY AND SCOPE OF AGREEMENT p Practices in Schedule "A"; I (c) Each Party reserves the right to exclude from Joint Use any of its Pole • Units which in the Party's judgment: I (i) are necessary for its sole use, or J (ii) carry, or are intended to carry, circuits of such character that • would make Joint Use of such Pole Units undesirable. • 1.03 Administrative Practices, attached hereto as Schedule "A", are included as I part and parcel of this Agreement (hereafter referred to as "Administrative Practices") and shall be read in conjunction with each of the Articles contained herein, provided that in the event of conflict between the Article and the I Administrative Practices, the Article shall prevail. Any additions or • amendments thereto shall be subject to the approval of the Parties as outlined in the Administrative Practices and shall have effect from the date specified in I the written approval endorsed thereon. I L I I I ARTICLE 1 - TERRITORY AND SCOPE OF AGREEMENT | 1.04 This Agreement is effective within the operating territories of both Parties and • shall cover all Pole Units of each Party now existing or hereafter constructed or acquired. I • 1.05 All other agreements between the Parties for the Joint Use of Pole Units within the territories covered by this Agreement are hereby abrogated and annulled. I I i i i i i i i i /5 i I ARTICLE II - DEFINITION OF TERMS i 2.01 The terms listed below, when used herein in the Agreement, including i the Administrative Practices unless the context indicates otherwise, shall have the following meanings: i ANCHOR means and includes all the physical components, excluding i guys used for anchoring a Pole. ANNUAL means the percentage of the total Joint Use Poles which is the OWNERSHIP annual ownership objective for Newfoundland Telephone as set i PERCENTAGE out in the Collateral Agreement. APPLICATION means a written request for a Joint Use Permit made in i accordance with Section 4 and 16 of the Administrative i Practices. ATTACHMENTS means any material, apparatus or fixtures used by either Party i and forming part of its plant carried on Poles. BOARD means the Board of Commissioners of Public Utilities of Newfoundland. CATV COMPANY means a company licensed by the Canadian Radio-television and Telecommunications Commission to distribute cable i television signals and attached to the Pole Units of either of the Parties to this Agreement i COLLATERAL means a collateral agreement entered into by the Parties entitled AGREEMENT "Pole Ownership Agreement" regarding Joint Use Pole ownership i bearing the effective date of January 1, 1996, i i \ /6 I I ! ARTICLE II - DEFINITION OF TERMS CONTROL means a cable used by Hydro to transmit system control 1 CABLE and data signals. 1 CSA means the Canadian Standards Association. CRTC means the Canadian Radio - Television and Telecommunications 1 Commission. GOVERNING means any body having legislative or regulatory powers 1 BODY affecting the Parties and includes the Board, the CRTC, and Federal, Provincial, Municipal or other authority having jurisdiction over highways or other public places, acting 1 under legislative authority to carry out duties in maintaining and improving public highways or other public places. 1 GROUNDING means the ground rod or ground coil, wire and all physical 1 SYSTEM components required to connect the neutral conductor to earth. JOINT means the ratio of the percentage of total Joint Use Poles OWNERSHIP owned by Hydro to the percentage of total Joint Use Poles 1 RATIO owned by Newfoundland Telephone. JOINT USE means the use by both Parties and, in relation to Pole 1 Units, means Pole Units used by both Parties, in accordance with the terms of this Agreement. 1 JOINT USE FILE means the jointly operated and maintained data base used by the Parties to record information, including the following: 1 (a) the total number of Joint Use Poles; 1 (b) the total number of Attachments by the Parties and by Others; (c) the number of Poles occupied by each Party as Owner and as 1 Tenant; 1 (d) the number of Attachments made by each Party; and (e) the number of Poles occupied by CATV Companies. I n I I I ARTICLE II - DEFINITION OF TERMS JOINT USE means the ratio agreed by the Parties as provided in Article I RATIO VIII of this Agreement. JOINT USE means the form as provided in SECTION 16 of the I REQUEST Administrative Practices. LINE CLEARING means the provision of adequate clearance from tree I interference for all circuits supported by Joint Use Poles and includes items such as the following: underbrushing, tree removals, cabling or guying of trees, pruning or trimming, I application of chemical herbicides, treatment of cuts, and disposal of debris. I LONG SPAN means a span length that exceeds 61 meters. CONSTRUCT/ON I MOVING means the changing of the location of a Pole, I OTHERS means persons, firms or corporations who are not a Party, OWNER means the Party which owns or controls the Pole Units, I PARTY means a party to this Agreement. I means the instrument in writing by which the Owner PERMIT authorizes Joint Use of a Pole Unit. I means a utility pole owned by a Party and used to distribute POLE electrical power or telecommunications signals. I means two or more Poles installed in a sequence to service POLE LINE a particular area. I POLE TOP means a device attached to the top of a Pole to increase the EXTENSION effective height of the Pole. I POLE UNITS means Poles, Anchors, Grounding Systems, Pole cribs, and related I rights-of-way. I; /8 I I I ARTICLE II - DEFINITION OF TERMS REARRANGE/ means the removal of Attachments from one position on I REARRANGEMENTS Pole and the placing of the same Attachments in another position on the same Pole. I REG/ON 1. means the territory to which the Joint Use Agreement between the Parties effective January 1, 1984 applied. I REGION 2. means all territory, other than Region 1, to which this Agreement applies. I REPLACE/ means the substitution of a new or different Pole for an existing REPLACEMENT Pole. I SACRIFICED means the cost recovered for Poles prematurely displaced as I VALUE set forth in Section 17 of the Administrative Practices. STRUCTURAL means the sale price of Poles and Anchors sold in place as set I VALUE forth in Section 17 of the Administrative Practices. SUBSTANDARD means, subject to Section 7.06 (b) (i), a Joint Use Pole which POLE does not conform to the specifications of Section 19 of the I Administrative Practices. TENANT means the Party making, applying for, or having the permission I to make Joint Use of a Pole belonging to the other Party. I TRANSFER means the removal of Attachments from one Pole and the placing of the same Attachments on another Pole. I I I I I /9 I I 1 ARTICLE HI - JOINT USE COMMITTEE • 3.01 The Parties shall establish and maintain a liaison committee to be known as the m Joint Use Committee, consisting of four members, two of whom shall be appointed by each of the Parties. Terms of reference are provided in SECTION I 2 - JOINT USE COMMITTEE. I I I I I I I I I I I i /10 I I ARTICLE IV - DEALING WITH PROPERTY I 4.01 Nothing in this Agreement shall limit or affect the rights of the Owner to deal m with or dispose of Pole Units which are not Joint Use Pole Units. • 4.02 The Owner may, after giving at least six (6) months prior written notice to the • Tenant, discontinue, terminate, or otherwise dispose of any of its Joint Use Pole Units. Such discontinuance, termination or other disposition of Pole Units • by the Owner shall not give rise to any liability to the Tenant. I * 4.03 In the event of discontinuance, termination or disposal of Pole Units under Clause 4.02 the Tenant shall, during the six (6) month notice period, have the B" first right to purchase such Pole Units from the Owner at the Structural Value • as provided in SECTION 17 - PRICE SCHEDULES. I I I I I I /ll I I I ARTICLE V - SPECIFICATIONS I 5.01 All construction in connection with the Joint Use of Pole Units, shall, at all M times, meet the requirements set forth in the specifications contained in SECTION 19 - CONSTRUCTION PRACTICES which are to be based on CSA I standards as a minimum, except where the Parties may mutually agree to make • trial installations using new techniques and materials. ™ 5.02 Subject to Clause 5.01, the character, design and construction of Attachments I is solely the responsibility of the Party who owns such Attachments. I I I I I I I I ( I In I I 1 ARTICLE VI - DIVISION OF COSTS • 6.01 The division of costs for erecting and maintaining Joint Use Pole Units shall at _ all times be equitable to both Parties and shall be determined and borne by the Parties in the manner set forth in the Administrative Practices. I • 6.02 Any payment made by the Tenant under any of the provisions of this Agreement shall not entitle the Tenant to the ownership of any part of the Pole ™ Units for which it has contributed in whole or in part, other than as expressly • provided in this Agreement or the Collateral Agreement. I I I I I I I I I., • /13 I I I ARTICLE VII - OWNERSHIP I 7.01 The Parties agree that it is desirable to achieve and maintain a balance of Pole _ ownership such that each Party will share equitably the benefits, liabilities and responsibilities of Joint Use. I • 7.02 (a) The Parties agree to work toward a Joint Ownership Ratio equal to the Joint Use Ratio in accordance with the terms of the Collateral • Agreement. I - (b) There shall be a determination of the number of Joint Use Poles owned by each Party as of December 31 of each year that this Agreement is in |^ force. I (c) The Parties agree that as of December 31st, 1994, the current best • estimate of the Ownership of Joint Use Poles was: I Poles owned by Hydro 23,450 Poles owned by Newfoundland Telephone 3,140 I Total Joint Use Poles 26,590 I From these numbers the Joint Ownership Ratio as of December 31st, • 1994 was 88.19% Hydro, 11.81% Newfoundland Telephone. At any I I ARTICLE VII - OWNERSHIP I time, this estimate of the Ownership of Joint Use Poles may be adjusted _ to reflect any better estimate to which both Parties may agree. | 7.03 Subject to, and in accordance with, the terms of the Collateral Agreement, • the Parties agree that: • (a) As of December 31st, 1995, the Annual Ownership Percentage for I Newfoundland Telephone shall be the percentage of the total Joint Use - Poles that it owned as of December 31st, 1994, plus 2%. §v (b) The Annual Ownership Percentage for Newfoundland Telephone for each • year end after 1995, up to and including December 31, 2000, shall be the percentage of the total Joint Use Poles that Newfoundland Telephone • owned as of December 31 of the previous year, after any sale under the I Collateral Agreement, plus 2% in year 1996, 2% in year 1997, 3% in year B 1998, 3% in year 1999 and 3% in year 2000. I 7.04 Either Party may from time to time transfer to the other Party the ownership • of Joint Use Poles where the Parties agree that it is desirable. \ • /15 I I I ARTICLE VII - OWNERSHIP I 7.05 Any transfer of ownership of Poles under this Agreement by a duly executed m Bill of Sale shall be free and clear of any liens and encumbrances. I 7.06 The Parties agree to the following Joint Use ownership objectives: I a) Mixed ownership of Pole Lines is not desirable; b) Mixed ownership in distinct geographic areas is not desirable; c) The owner of a Pole Line is to be the Party primarily responsible for any I additions or changes to the Pole Line; and m d) Where Poles are placed contrary to the above objectives in this clause, corrections shall, where practical, be made through the sale and m-~ purchase of Poles. I I I I I I • /16 I I f ARTICLE VIII- RENTALS I 8.01 The Tenant shall pay to the Owner rentals as calculated in SECTION 14 - - RENTALS. | 8.02 Payments made by Others for the use of Joint Use Pole Units, shall be paid to • the Owner and be shared in accordance with SECTION 15 - RENTALS FROM OTHERS. I • 8.03 (a) The Parties agree that the Joint Use Ratio will be the ratio of 40% _ Newfoundland Telephone and 60% Hydro. The Parties may, at any time and from time to time, by letter or other written instrument, signed by an ^ authorized representative of each Party, agree to vary, unconditionally or • on the happening of any condition, the Joint Use Ratio. Such agreement to vary, shall be effective whether executed before, coincident with, or • after the Agreement, and may be on such terms and conditions as the I Parties deem appropriate. (b) As the Agreement has been executed subsequent to its commencement I date, it is further agreed that rentals will be calculated as if the Joint Use • Agreement had been in place commencing on January 1, 1993 and shall be paid within thirty (30) days of the notification to both Parties of the amount of such rentals; no interest shall be paid on that amount. I I I I ARTICLE IX - RIGHTS WITH RESPECT TO OTHER PARTIES I 9.01 Any rights or privileges granted to Others by the Owner in respect of the use _ of its Pole Units prior to January 1, 1993, shall not be affected by this Agreement. I • 9.02 Notwithstanding anything to the contrary contained in this Agreement, either Party may at any time and from time to time grant to Others any rights or • privileges with respect to any Pole Units which are not Joint Use Pole Units. I 9.03 Any Pole Unit, which is not a Joint Use Pole Unit and in respect of which rights or privileges have been granted to Others, may at any time be approved ^ for Joint Use, if in the opinion or judgment of the Owner, Joint Use of the Pole • Unit will not unduly interfere with the rights or privileges granted to such • Others. The Owner may continue any such rights or privileges of Others • notwithstanding the fact that the Pole Unit may become a Joint Use Pole Unit. I | 9.04 The Owner may at any time and from time to time grant to Others rights and I privileges with respect to any of the Owner's Pole Units, provided, however, • that in the case of a Joint Use Pole: I •^ /18 I I 1 ARTICLE IX - RIGHTS WITH RESPECT TO OTHER PARTIES • (a) The Owner shall not, without the prior written consent of the Tenant, _ grant any rights or privileges to any Others with respect to any part of the space in which the Tenant has the right to attach its Attachments in I accordance with SECTION 19 - CONSTRUCTION PRACTICES. If the • Owner wishes to grant any rights or privileges to Others with respect to any part of such space on a Joint Use Pole, the Owner shall request • approval in writing and shall provide to the Tenant all relevant I information and data concerning the rights or privileges which it wishes to grant. The Tenant shall examine the desirability and feasibility of allowing such rights or privileges within such space, and upon the ^ Tenant giving its consent in writing the Owner may then grant such • rights or privileges. If the Tenant does not give its consent, the Tenant shall give the Owner written reasons for its refusal, within ninety (90) 1 days of the request for approval. I (b) The Owner shall not grant new rights or privileges to Others for the use of space on its Poles outside the space in which the Tenant has the right I to attach its Attachments in accordance with SECTION 19 - • CONSTRUCTION PRACTICES unless such new rights or privileges do not unduly interfere with the rights or privileges of the Tenant. I, I I I I ARTICLE IX - RIGHTS WITH RESPECT TO OTHER PARTIES • 9.05 The Owner shall ensure that the exercise by Others of rights or privileges B granted in Region 1 after January 1, 1984 and in Region 2 after January 1, 1993, in respect of its Joint Use Poles shall be as provided in SECTION 19 - I CONSTRUCTION PRACTICES. I 9.06 Notwithstanding anything to the contrary in this Agreement, Attachments B made by Others as a result of an order by the CRTC, in the case of Poles I owned by Newfoundland Telephone, or by the Board or by the Government of Newfoundland & Labrador, in the case of Poles owned by Hydro, shall be governed by the terms and conditions of such order. r i i i i i i i I /20 I I ARTICLE X- LIABILITIES • 10.01 This Agreement is intended for the mutual benefit and protection of the Parties _ and non-conformity therewith shall not create any presumption of fault on the part of either Party in favor of any Others. I • 10.02 Whenever any liability is incurred by either or both of the Parties for injuries to, or death of any persons, including employees of either Party, or for damage to • the property, or for any other damages or injuries, arising out of the I construction, installation, presence, or use of Joint Use Pole Units under this _ Agreement, the liability for such damages, as between the Parties, shall be as follows: I • (a) each Party shall be wholly liable for all injury to, or death of any persons, including employees of either Party, or for damage to any property, • including the property of either Party, caused solely by its negligence; I (b) each Party shall be liable for all injury to, or death of any persons, including employees of either Party, or for damage to any property, I including the property of either Party, caused by the negligence of both • Parties, in the same proportion that its negligence contributed to the \r i I 1 ARTICLE X- LIABILITIES • injury, death or damage; I (c) in the event that the Parties are unable to agree upon the proportion of | liability, the issue of apportionment of liability between the Parties shall • be decided by arbitration as provided in ARTICLE XVIII - ARBITRATION. The cost of such arbitration shall be borne by the unsuccessful Party, or * if neither Party is successful, the costs shall be borne equally; I — (d) in respect of a damage claim which is made against, or affects, both Parties, the Parties agree to use their best efforts to settle the claim ^. upon reasonable terms agreed to by both Parties. In the event that the • proportion of liability of each Party has been agreed upon, or decided by arbitration, and the claimant desires to settle upon terms acceptable to • one of the Parties but not to the other Party, the following shall apply: I (i) The Party to which the settlement is acceptable may give written I notice to the other Party of its willingness to accept the I settlement amount. I. In I I I ARTICLE X- LIABILITIES I (ii) If the other Party does not agree to accept the settlement within m fifteen (15) days after such notice the Party which gave the notice (the "Notice Party") may choose to withdraw from the dispute and I the other Party (the "Disputing Party") shall defend the claim. The • Notice Party may choose to defend its own position in the dispute. • (iii) Where the amount of the liability of the Parties, as later agreed I upon or determined by an independent court or tribunal, is less m than the proposed settlement amount, then the Notice Party shall pay to the Disputing Party its proportion of the proposed fc*_ settlement amount and its proportion of the costs and expenses of • the Disputing Party. " (iv) Where the amount of the liability of the Parties, as later agreed I upon or determined by an independent court or tribunal, is equal _ to or greater than, the proposed settlement amount, the Disputing Party shall bear all its own costs and expenses and will reimburse I the costs, if any, incurred by the Notice Party after the date of the I Notice. The sole responsibility of the Notice Party in that event I.. \ /23 I I I ARTICLE X- LIABILITIES I shall be to pay the amount corresponding to its proportion of the • proposed settlement amount. I I (e) In the adjustment between the Parties hereto of any claim for damages I arising hereunder, the liability assumed thereunder by the Parties and the calculation of the amount of any settlement under this Clause 10.02, • shall include, in addition to the amounts paid to the claimant, all costs, I charges, and expenses incurred by the Parties or either of them in m connection therewith which shall include reasonable solicitor's fees on a solicitor and client basis and other costs and expenses incidental to any *.. suit, action, investigation, claim or proceeding. Such adjustment shall I be carried out promptly. • (f) Any and all liability arising as the result of either Party's negligence in I failing to maintain minimum ground clearances required by the CSA . standards or this Agreement shall be borne by the negligent Party or Parties in proportion to the negligence of the Party or Parties. All costs I associated with repairing/replacing Pole Units damaged as the result of • negligence on the part of either Party in failing to maintain minimum ground clearances required by the CSA standards or this Agreement I r /24 I I ARTICLE X- LIABILITIES I shall be borne by the negligent Party or Parties in proportion to the m negligence of the Party or Parties. For the purposes of this Clause 10.02 (f), the Tenant's failure to maintain the clearances for which it is I responsible shall not affect the Owner's proportion of liability, if any. I 10.03 (a) Subject to Clause 10.02, the Owner shall save, defend, keep harmless • and fully indemnify the Tenant from and against any and all losses, costs I (including, without limitation, reasonable solicitor's fees on a solicitor I and client basis and other costs and expenses incidental to any suit, action, investigation, claim or proceeding), charges, damages, accidents, T ^ claims, demands, awards, suits or other proceedings which the Tenant I may at any time or times hereafter bear, sustain, suffer, or be put to, by reason of, or on account of injury to or death of any person or persons, • or damage to or destruction of any of the property of the Tenant or of I any other person, arising out of or in respect of use by or presence of _ Others on any of the Owner's Poles, as provided in ARTICLE IX - RIGHTS WITH RESPECT TO OTHER PARTIES, which were Joint Use I Poles prior to the granting of rights or privileges to these Others as • provided in ARTICLE IX - RIGHTS WITH RESPECT TO OTHER PARTIES, /25 i I I ARTICLE X- LIABILITIES I provided, however, that the Tenant shall be responsible for its own m negligence and for the negligence of its agents, or employees. m (b) Except as provided in Clause 10.03 (a) above, in case of damage to Pole • Units or Attachments of either Party by Others, each Party is responsible for recovering its own damages. In an emergency, when a Joint Use • Pole is replaced by the Tenant, the Tenant will bill the Owner for work I done on behalf of the Owner who, in turn, will bill the person causing m the damage for the actual costs. L 10.04 Except as provided in this Article X, each Party shall bear its own losses and • costs in causes where a claim or demand does not arise from the negligence of the other Party, its agents, or employees. I I I I I i /26 I I I ARTICLE XI- DEFAULTS I 11.01 Where either Party defaults in any of its obligations under this Agreement the m Party not in default may give the Party in default written notice of such default. If such default continues thirty (30) days after notice thereof, the Party not in I default may, in addition to any other remedy it may have, forthwith terminate I this Agreement as far as it concerns the future granting of Joint Use in such of the Joint Use territories covered by this Agreement as it, in its sole discretion, • shall determine, and such termination shall not in any way affect the rights and I liabilities of the Parties in any territories where no such termination has m occurred and such rights and liabilities in such territories shall continue to be governed by the terms of this Agreement provided, however, that nothing |v contained in this Clause 11.01 shall affect any rights which either Party may • have under any Federal or Provincial legislation. • 11.02 (a)Where either Party defaults in the performance of any work which I it is obligated to do under this Agreement the Party not in default - shall advise the Party in default forthwith by written notice of such default and should such default continue for fifteen (15) days I after notice thereof, the Party not in default may elect to do such I work, and the Party in default shall pay the other Party one- hundred and fifty percent (150%) of the actual cost of the I /27 I f ARTICLE XI- DEFAULTS I work. For the purpose of ascertaining liability arising out of the M work so done, such work shall be deemed to have been completed by the Party in default. I • (b) Notice of default under Clause 11.01 may operate as notice of default under this Clause 11.02. I I 11.03 A default under the Collateral Agreement shall be deemed to be a default M under this Agreement, and a default under this Agreement shall be deemed to be a default under the Collateral Agreement. i i i i i i I /28 I 1 ARTICLE XII - IMPOSSIBILITY OF PERFORMANCE I 12.01 Where the performance by either of the Parties of any of their respective a obligations as contained in this Agreement shall to any extent be prevented, restricted, delayed, or interfered with by reason of any of the following: I • (i) war, revolution, civil commotion, riots, acts of public enemies, blockade or embargo, any strike, lock-out or other labor difficulty or work * stoppage, explosion, epidemic, fire, flood, freeze, severe winter • conditions, ice blockage, acts of God, or order of any Governing Body M having jurisdiction; It (ii) the prohibition, restraint, restriction or prevention from installing, • constructing or Replacing Poles or for making available any portion of any such Pole Units by any statute law, by-law, ordinance, regulation, I • judgment, or by the property rights of Others, or the removal, or threat I of removal of any easement, right-of-way, servitude or other privilege; I then such Party shall, on written notice to the other, be excused from the | performance of such obligations but only to the extent of the period of such • prevention, restriction, delay or interference, provided that the provisions contained in this Article XII shall not apply to the obligations of such Party to pay amounts required to be paid to the other Party in the manner and at the I /29 I I ARTICLE XII - IMPOSSIBILITY OF PERFORMANCE • time provided in this Agreement. The foregoing notwithstanding, neither Party • shall be liable to pay rental fees or charges for any period during which and to the extent that such Party is prevented from using the other Party's Pole Units I by reason of the Owner of such Pole Units being unable to perform any of its H obligations under this Agreement for any reason whatsoever. I I I I I I I I I I I /30 I I I"" ARTICLE XIII - ASSIGNMENT OF RIGHTS • 13.01 Except as otherwise provided in this Agreement, neither Party shall assign or m otherwise dispose of this Agreement, or any of its rights or interests hereunder in any of the Joint Use Pole Units or any Attachments by Others without the I written consent of the other Party which shall not be unreasonably withheld, I provided, however, that nothing herein contained shall prevent or limit the right of either Party to mortgage any or all of its property, rights, privileges and * franchises, or lease or transfer any of them to another corporation organized I for the purpose of conducting a business of the same general character as that | of such Party, or to enter into any merger or consolidation and in the case of the foreclosure of such mortgage or in the case of such lease, transfer, merger §v or consolidation, its rights and obligations hereunder shall pass to and be I acquired and assumed by the purchaser on foreclosure, or the transferee, leasee, assignee, or merged or consolidated company, as the case may be. I I \ I I I I I I ARTICLE XIV - SERVICE OF NOTICES I 14.01 (a) (i) Any notice required to be given under this Agreement shall be in m writing from one Party's representative on the Joint Use Committee to the other Party's representative on the Joint Use % Committee and shall be sufficiently given if sent by registered • mail, sent by facsimile transmission or delivered by hand and addressed, in the case of Hydro , to its head office, St. John's, • Newfoundland, and in the case of Newfoundland Telephone, to its I head office, St. John's, Newfoundland. I (ii) A notice sent by registered mail is deemed to have been given on r §v the third business day following such mailing. I (iii) A notice sent by facsimile transmission, shall be deemed to have • been given on the business day following the transmission of the I communication. (iv) A notice delivered by hand shall be deemed to have been given on I the date of actual delivery. I I I • ARTICLE XIV - SERVICE OF NOTICES • (b) Where the notice is a notice of termination or default, notwithstanding » Clause 14.01 (a), it shall not be effective unless given from the President of one Party to the President of the other Party with copies sent to the 8 Parties' representatives on the Joint Use Committee. • 14.02 Either Party may at any time, and from time to time, change its address for I notice, or the person designated to receive such notice, provided in this Article XIV by giving notice in writing, as provided in this Article XIV, to the other Party of this change. I I I I I I I I I /33 I I I ARTICLE XV- INVOICES AND PAYMENTS I 15.01 Annual rentals shall be calculated in accordance with SECTION 14 - RENTALS • and shall be due and payable in equal monthly installments on the 1st of each month. I • 15.02 Accounts shall be deemed overdue if not paid within thirty (30) days after the receipt of the invoice. The Parties shall pay interest charges on overdue * accounts at the monthly rate of one twelfth (1/12) of the annual rate I determined as the lowest current prime commercial lending rate during that m month at the Bank of Nova Scotia plus one percent (1%). Such interest charges shall be compounded at the monthly rate for each month or part I,. month the account remains overdue. I 15.03 Upon completion of work performed by either Party, the expense of which is to • be borne wholly or in part by the other Party, the Party performing the work I shall, after its completion, deliver to the other Party an invoice showing the _ work completed and an itemized list of labor, materials and other expenses. In the event that a project is not completed within thirty (30) days, progress | billings indicating work completed may be rendered monthly. I /34 I W ARTICLE XV- INVOICES AND PAYMENTS • 15.04 Failure to make any payment required under this Agreement within thirty (30) m days after the receipt of an invoice shall, at the election of the other Party, constitute a default under this Agreement. I I 15.05 Where, under this Agreement, both Parties agree, in the interest of economy, to use unit charges as representing the cost of certain operations in lieu of actual costs, nothing in the foregoing terms of this Article XV shall preclude I the practice of so doing. I I I I I I I I I /35 I I I ARTICLE XVI - WAIVER OF TERMS OR CONDITIONS 16.01 The failure of either Party to enforce any of the terms or conditions of this I Agreement shall not constitute a general or specific waiver or relinquishment of any such terms or conditions but the same shall be and remain at all times in I full force and effect. I I I I t I I I I I I I i /36 i I f ARTICLE XVII - PAYMENT OF TAXES I 17.01 Each Party shall be responsible for the payment of all taxes, rates and m assessments lawfully levied on property owned by it or treated as owned by it under ARTICLE IX - RIGHTS WITH RESPECT TO OTHER PARTIES upon Joint I Use Poles, and the taxes and the assessments which are levied on these Joint I Use Pole Units shall be paid by the Owner thereof, but any tax , fee or charge levied on the Owner's Poles solely because of their use by the Tenant shall be • paid by the Tenant. I I r i i i i i i • /37 I I ARTICLE XVIII - ARBITRATION E 18.01 (a) Where any dispute or difference arises as to any matter or thing relating H to or in respect of this Agreement, such dispute or difference shall be referred to arbitration in accordance with the provisions of The I Arbitration Act, R.S.N. 1990, Chapter A-14, as amended, and shall be • submitted to a sole arbitrator agreed upon between the Parties. The decision of the sole arbitrator shall be final and binding upon the Parties. • (b) Where the Parties are unable to agree upon a sole arbitrator, such M dispute or difference shall be referred to three (3) arbitrators. One (1) arbitrator shall be appointed by each Party, and the remaining arbitrator, ^.. who shall be chairman, shall be selected by the arbitrators appointed as • herein provided. The decision of any two (2) arbitrators shall be final and binding upon the Parties. I I (c) The costs of any such arbitration, including reasonable compensation for _ the arbitrator, or arbitrators, shall be borne and paid equally by the Parties, or as the arbitrator or arbitrators may otherwise direct. I I I /38 I I I ARTICLE XIX - TERM OF AGREEMENT I 19.01 Regardless of the date of execution, this Agreement shall continue in force for _ a period from January 1, 1993, to December 31, 2000, and shall not be terminated during such period except as stated elsewhere in this Agreement. I I 19.02 After December 31, 2000, this Agreement shall continue in full force and • effect indefinitely unless and until terminated by notice in writing as hereinafter I provided in this Article XIX. 19.03 (a) This Agreement may be terminated by at least twelve (12) months p-- notice in writing, given at any time following the commencement date of • this Agreement, by either Party to the other, provided that such notice of termination may not specify a termination date which is prior to • December 31, 2000. I B (b) This Clause 19.03 does not apply to a notice of termination given under either ARTICLE XI - DEFAULTS or ARTICLE XX - REGULATORY I IMPACT. I I I /39 I I I ARTICLE XIX - TERM OF AGREEMENT i 19.04 Notwithstanding any termination of this Agreement, existing Joint Use shall I continue to be covered by the terms of this Agreement until: (i) such Joint Use has been discontinued by the Tenant, I (ii) a new Joint Use agreement is executed by the Parties, or B (iii) a relevant order is made by a Governing Body, whichever occurs first. I I r i i i i i i i /40 i I I ARTICLE XX - REGULATORY IMPACT I 20.01 The Parties recognize that Newfoundland Telephone is subject to regulation by a the CRTC. Newfoundland Telephone shall provide notice to Hydro of any regulatory hearing scheduled by the CRTC which involves consideration of any I term of this Agreement. Where the CRTC makes an order affecting any term I of this Agreement, then, subject to Clause 20.03, this Agreement shall be deemed to be modified to comply with such order. I 20.02 The Parties recognize that Hydro is in some respects subject to regulation by » the Board. Hydro shall provide notice to Newfoundland Telephone of any hearing scheduled by the Board which involves consideration of any term of I*.... this Agreement. Where the Board makes an order, or recommendation that is • subsequently accepted by the Newfoundland Lieutenant-Governor in Council, affecting any term of this Agreement, then, subject to Clause 20.03, this • Agreement shall be deemed to be modified to comply with such order or I recommendation. 20.03 Where an order of the Board or the CRTC, shall result in a modification of any | term of this Agreement as described in Clauses 20.01 or 20.02 and the I modification affects either: I I I ARTICLE XX - REGULATORY IMPACT ! (a) Article VI or Clauses 7.02 and 7.03 of Article VII of this Agreement; or (b) Sub-sections 14.01, 14.02, 14.03, 14.04, 14.05, 14.06, or 14.08 or I Section 15 of the Administrative Practices in Schedule "A" to this I Agreement; or • (c) Article III or IV of the Collateral Agreement; I m then the Party directly subject to the order of the Governing Body shall provide written notice of the order to the other Party within thirty (30) days of the 1^ filing of the written order. The Party which is not directly subject to the • Governing Body which has made the order shall have the right, but not the obligation, to terminate this Agreement forthwith by written notice of • termination to the other Party. I I 20.04The exercise of the right of termination provided in Clause 20.03 may be made | when the Party not directly subject to a Governing Body becomes aware of the • order of that Governing Body whether as a result of the written notice of the other Party or otherwise. iI /42 I I ARTICLE XX - REGULATORY IMPACT I m 20.05 (a) The right of termination provided in Clause 20.03 may only be exercised in the event that the Party which is not directly subject to the Governing I Body which has made the order, has suffered an alteration in its overall I position greater than $75,000 per annum, over the remainder of the term of this Agreement. I (b) For the purposes of this ARTICLE XX - REGULATORY IMPACT, a Party's H overall position for a year shall be the sum of: (i) the gross rentals payable to that Party by the other Party for that •*""• year; and • (ii) that Party's share of the rentals from Others for that year calculated in accordance with SECTION 15 - RENTALS FROM ' OTHERS. I a 20.06 The right of termination provided in Clause 20.03 may only be exercised by giving notice in writing within six (6) months from the date when the order of I the Governing Body came to the attention of the Party not directly subject to • the Governing Body. Failure by the applicable Party to provide notice of termination within six (6) months shall result in the loss of the right to terminate. I /43 I I i ARTICLE XXI - MISCELLANEOUS PROVISIONS V I 21.01 This Agreement shall enure to the benefit of and shall be binding upon the • successors, and subject to ARTICLE XIII - ASSIGNMENT OF RIGHTS upon the assigns of the Parties respectively. I • 21.02(a) In this Agreement and in Schedule "A", the words "Article" and "Clause" shall refer to specific portions of the Agreement itself, and the words ™ "Section" and "Sub-Section" shall refer to specific portions of Schedule I "A". I (b) The headings used in this Agreement and in Schedule "A" are for ft information purposes only and shall not be construed as part of this • Agreement. • (c) This Agreement is to be read with all changes in number as the context I requires. I 21.03 Words in this Agreement importing the singular number shall include the | plural and vice-versa. I j /44 I I I i IN WITNESS WHEREOF the Parties hereto have caused these presents to be executed in duplicate and their corporate seals to be hereunto affixed, attested by the signatures of their respective officers duly authorized in that behalf at the places and on the dates hereinafter appearing. THE COMMON SEAL of Newfoundland )NEWFOUNDLAND TELEPHONE Telephone Company Limited )COMPANY LIMITED was hereunto affixed by its duly authorized officers at St. John's, Newfoundland, this day of C5^uotxAju^ in the presence of: )President & Chief Executive Officer )Vice-PrestfQent -Operations^ i ) Technology THE COMMON SEAL of Newfoundland NEWFOUNDLAND AND LABRADOR i and Labrador Hydro was hereunto )HYDRO affixed by its duly authorized officers at St. John's, Newfoundland, this 2,1s^ i day of I^C^WJM^ , 1995, i in the presence of: JPresident & Chief Executive Officer i )Vice-President - Transmission and ) Rural Operations i I i /45 i I 1 i SCHEDULE "A" 1 ADMINISTRATIVE PRACTICES SECTION PAGE 1 1. GENERAL 1.01 Introduction 1 1 1.02 Transmission Lines Poles 1 1.03 Circuit Limitations 2 1.04 Voltage Conversion Co-ordination 2 1 1.05 Prior Notification of Work on Joint Use Pole Units 3 1.06 Information Respecting Electrical Faults 3 1 1.07 Procedure for Pole Pinning 4 I 2. JOINT USE COMMITTEE 2.01 Composition 6 I 2.02 Responsibilities 6 2.03 Frequency of Meetings 7 2.04 Decisions 7 I 2.05 Pole Census 8 I 3. PLANNING AND COORDINATION 3.01 Identification of Joint Use Pole Units 9 3.02 Purpose of Planning 9 I 3.03 Planning Meetings 9 3.04 Unidentified Pole Units 10 3.05 Planning for Joint Use Ownership 10 I 3.06 Mixed Ownership 11 I 4. APPLICATIONS AND PERMITS I 4.01 Initial Contact 12 4.02 Exception to Procedure 12 4.03 Application for Permit 12 I 4.04 Processing of Application 13 i I I I I 4.05 Permits for Existing Joint Use Poles 13 5. ESTABLISHING JOINT USE OF EXISTING POLE UNITS I 5.01 Application of this Section 14 5.02 Replacement of Pole Units 14 5.03 Owner Undertakes Replacement of Pole Units 14 I 5.04 Tenant Undertakes Replacement of Pole Units 14 5.05 Additional Pole Units in Existing Pole Lines 15 5.06 Installing and Modifying Attachments 16 I 5.07 Pole Top Extensions 16 I 5.08 Modifications to be Made Prior to Attaching 17 I 6. ESTABLISHING JOINT USE OF NEW POLE UNITS 6.01 Application of this Section 18 6.02 Coordination and Ownership 18 I 6.03 Construction of Joint Use Pole Units 18 6.04 Joint Use Occupancy Time Frame 19 6.05 Assumed Joint Use Poles 19 I 6.06 Additional Non-Joint Use Pole Units 20 6.07 Responsibility for Installing Attachments 20 I 6.08 Pole Identification 20 I 7. ADDING, CHANGING, REPLACING, AND RELOCATING EXISTING JOINT USE POLE UNITS OR ATTACHMENTS I 7.01 Application of This Section 21 7.02 Replacement of Pole Units 21 7.03 Owner Undertakes Replacement of Pole Units 21 I 7.04 Tenant Undertakes Replacement of Pole Units 22 7.05 Additional Pole Units in Existing Joint use Pole Lines 22 7.06 Replacement of Substandard Joint Use Poles 23 I 7.07 Replacement of Specific Poles 24 7.08 Emergency Pole Replacements 25 I 7.09 Transferring and Rearranging Attachments 25 7.10 Modifications to be Made Prior to Additional Joint Use 26 I 7.11 Requirements of Governing Bodies or Property Owners 26 I I I 8. TRANSFER COSTS 8.01 Calculation of Transfer Costs 28 I 8.02 Transfer Costs and the Replacement of Pole Units 28 8.03 Transfer of Attachments due to Routine Maintenance 29 8.04 Transfer of Attachments due to Requirements of Governing 29 I Body 8.05 Transfer of Attachments due to Requirements of Others 29 I 8.06 Pole Topping and Attachment Transfers 30 9. HYDRO CONTROL CABLES IN THE COMMUNICATION SPACE I 9.01 Policy, Planning and Co-ordination 31 I 10. MAINTENANCE OF POLE UNIT{S) AND ATTACHMENTS I 10.01 Maintenance of Joint Use Pole Units 32 10.02 Maintenance of Attachments 32 t 10.03 Maintenance of Rights-of-Way 32 I 11. TERMINATION OF JOINT USE 11.01 Termination of Joint Use By Owner 34 I 11.02 Termination of Joint Use by Tenant 35 I 12. HIERARCHY OF SIGNING AUTHORITY 12.01 Transaction Approvals 36 I 12.02 Change of Authorities 36 I 13. RIGHTS-OF-WAY 13.01 Tenant Rights-of-Way 37 I 13.02 Joint Rights-of-Way 37 13.03 Distribution Line Easements 38 13.04 No Warranty for Use of Owner's Rights-of-Way 38 I 13.05 Clearing of Rights-of-Way 38 i 13.06 Right-of-Way Acquisition 39 \ I 1 14. RENTALS 1 14.01 Revenue Neutrality 41 14.02 Annual Carrying Charge 41 14.03 Composition of Annual Carrying Charge Rate 42 1 14.04 Basis of Rental Rates 42 14.05 Composition of Embedded Costs 42 14.06 Calculation of Annual Carrying Charge 43 1 14.07 Data to be Exchanged Annually 43 14.08 Rentals 44 14.09 Details of Rental Calculations 45 1 14.10 Annual Review 45 1 14.11 Joint Use File 45 1 15. RENTALS FROM OTHERS • 15.01 Sharing of CATV Rentals 54 15.02 Distribution of Rental Payments From Others 55 r 15.03 Attachments Outside Communication Space 56 15.04 Payment 56 i 16. JOINT USE REQUEST FORM i 16.01 General 61 i 16.02 Joint Use Request - Exhibit A 61 i 17. PRICE SCHEDULES 17.01 Sacrificed and Structural Value Price Schedules 62 17.02 Price Schedule Update 62 i 17.03 Schedule of Transfer Cost Factors 63 17.04 Emergency Pole Replacement 63 17.05 Annual Pole Storage Fee 64 i 17.06 Pole Topping and Attachment Transfers 65 18. JOINT USE BURIED CONSTRUCTION i( I 18.01 Policy, Planning and Co-ordination 74 1 I J 19. CONSTRUCTION PRACTICES I 19.01 General CSA Standards 75 19.02 Vertical Design Clearances and Separations 75 I 19.03 Climbing Space Requirements - Joint Use Poles 78 19.04 Anchors 80 19.05 Guying Arrangement and Anchor Location 85 I 19.06 Pole Line Design 100 19.07 Pole Setting Depth (P.S.D.) 109 19.08 Pole Marking 113 I 19.09 Grounding and Bonding 113 19.10 Easement Widths and Lines 121 19.11 Tree Clearing and Trimming 123 I 19.12 Vertical Runs on Poles 124 I 19.13 Standard Symbols 127 r i i I i I i i i I I SECTION 1 - GENERAL I 1.01 Introduction I These Administrative Practices form part of the Joint Use Agreement and I contain policies, price schedules, forms, procedures and specifications essential to the detailed administration and operation of the Agreement. I The success of the Agreement is dependent on a good relationship between the Parties at all levels. This can only be achieved if each Party carries out I the intent of the Agreement, co-ordinates its work to meet the time I schedules outlined and gives work on Joint Use Pole Units a high priority. I t 1.02 Transmission Lines Poles Transmission line poles are not covered by this Agreement and Hydro is not I obligated to permit attachment. In the event that transmission line poles are I used as crossing poles by Newfoundland Telephone, the Parties agree that: I (a) New Joint Use Crossing Beneath Transmission Lines | Where construction of new Joint Use Pole Units involves crossing * under a transmission line, an analysis of the practicality and cost I between raising transmission line structures and going underground will be made by the Parties. If the Parties determine that the I transmission line structures should be raised, then both Parties will share the cost equally, as they would for an underground duct bank. I i n i I I SECTION 1 - GENERAL I b) Upgrading of Existing Transmission Line Structures for Additional Newfound/and Telephone Clearance. I Where Hydro agrees to upgrade existing transmission line structures I to provide additional clearances required by Newfoundland Telephone, then the work will be carried out by Hydro and the cost shall be paid I by Newfoundland Telephone. I I 1.03 Circuit Limitations These Practices are in accordance with the requirements for Joint Use I involving supply circuits operating at a voltage of 25 KV or less phase to t phase. In general, Joint Use involving supply circuits exceeding 25 KV phase to phase and communication circuits will not be permitted. I 1.04 Voltage Conversion Co-ordination • Communication circuit requirements or protection and grounding vary with | certain primary voltages and systems. Hydro shall give Newfoundland • Telephone a minimum of sixty (60) days prior written notice of a proposed • change in primary voltage or system. I I 12 I I SECTION 1 - GENERAL 1.05 Prior Notification of Work on Joint Use Pole Units I For safety of personnel and security of service, a Party who proposes to perform work on Joint Use Pole Units shall notify the other Party before I commencing such work. When personnel of Newfoundland Telephone are erecting Poles or tree trimming along existing lines carrying Hydro's circuits I energized at voltages above 750 volts to ground, Hydro's personnel must be notified daily before and after any work is performed. Notwithstanding the I provisions of ARTICLE XIV - SERVICE OF NOTICES of the Agreement, such I notification need not be written notice. Furthermore, before any work begins which could place the worker in contact with Hydro's circuits I energized at voltages above 750 volts to ground, clearance shall be obtained from the control authority of Hydro in the area. Newfoundland t Telephone's authorized representative must obtain a protection guarantee and have a tag placed on the feeder being worked on prior to beginning I work. When work is finished for the day, Newfoundland Telephone's authorized representative must notify Hydro to have this protection I guarantee released and the tag removed. The costs for having a protection guarantee established and released shall be as agreed between the Parties I and borne by Newfoundland Telephone. I 1.06 Information Respecting Electrical Faults (a) Where Newfoundland Telephone encounters difficulties which may be I attributable to an electrical fault, it may request in writing a listing of electrical faults recorded by Hydro and Hydro will attempt to provide a I written listing to Newfoundland Telephone within thirty (30) days of the /3 i I SECTION 1 - GENERAL I request. I (b) Where for any reason during the placement of Poles by Newfoundland Telephone into energized circuits owned by Hydro an electrical fault I occurs, Newfoundland Telephone's authorized representative shall immediately cease work and notify Hydro's local control authority. If I the feeder trips for any reason whatsoever, it shall not be re-energized until assurance is received from Newfoundland Telephone's authorized I representative that all personnel are clear and the line may be re- energized. Where a trip is due to an electrical fault caused by I Newfoundland Telephone, Hydro may request a written report of the incident. This report shall be submitted not more than five business I days following the request. t I 1.07 Procedure for Pole Pinning I The following outlines the Parties responsibilities for Pole pinning: I Newfoundland Telephone shall: (a) give notice to Hydro's area office one full day in advance of any Pole • installation in energized lines; I (b) reimburse Hydro for its Pole pinning and inspection costs as agreed I between the Parties; I i /4 I I SECTION 1 - GENERAL P (c) retrieve Newfoundland Telephone's cover-up and Pole guards from Hydro's premises; and B (d) replace burnt Poles which occur before Hydro's inspections. I Hydro shall: ft (a) inspect Poles to determine if pinning is required. This inspection shall take place no later than the next business day after the Poles are I installed; I (b) pin Poles; Is.. (c) transport Newfoundland Telephone's cover-up and Pole guards to Hydro's premises; and 1 (d) replace burnt Poles which occur after Hydro's inspections. I I I I \ I I I 1 SECTION 2 - JOINT USE COMMITTEE 2.01 Composition I (a) Each Party shall notify the other Party in writing of the names of its two I representatives to the Joint Use Committee and shall notify the other Party in writing of any change of its representatives. I (b) Each Party may substitute a representative for a Joint Use Committee I member for the purpose of attending a Joint Use Committee meeting. I (c) Additional personnel may be utilized from time to time to assist the I Joint Use Committee. g (d) Working committees may be established by the Joint Use Committee to act as a task force on special problems. I I 2.02 Responsibilities I The Joint Use Committee shall: I (a) promote and co-ordinate the planning, design, installation and maintenance of Pole Units for Joint Use; I (b) administer the terms and conditions of this Agreement; I I I I SECTION 2 - JOINT USE COMMITTEE (c) consider all matters respecting Joint Use of Pole Units and negotiate I transactions respecting the institution, continuance or discontinuance of I the Joint Use of particular Pole Units; I (d) negotiate all questions and problems which come under dispute regarding Joint Use; I (e) initiate such studies, audits, surveys, samples and other activities as I may be necessary to formulate, revise and amend the Administrative I Practices; and (f) initiate annual reviews and modifications as required of the I Administrative Practices for the construction, management, preservation and use of Joint Use Pole Units, and the rentals and r payments to be made in respect thereof. i i 2.03 Frequency of Meetings i Meetings of the Joint Use Committee shall be convened quarterly, however, any member may at any time on short notice and without formality request I such a meeting. i 2.04 Decisions I I. No decision or recommendations shall be made unless there is unanimous I agreement by all members of the Joint Use Committee. I I • •• SECTION 2 - JOINT USE COMMITTEE 2.05 Pole Census I From time to time as determined by the Joint Use Committee, the Parties I shall jointly conduct a Pole census to ensure a mutually acceptable degree of accuracy of Joint Use records. Each Party will participate equally in the I census and bear its own costs and complete the census within an agreed time frame. I I I t I I I I I I ! r /8 I I SECTION 3 - PLANNING AND COORDINATION I 3.01 Identification of Joint Use Pole Units Each Party is responsible for planning its own Pole Units, however, the I Parties shall identify and co-ordinate planning for proposed Pole Units I anticipated within a five (5) year planning period. Such Pole Units shall be categorized as to their ultimate suitability or non-suitability for Joint Use. I I 3.02 Purpose of Planning I The final decision to go Joint Use is subject to the rights of each Party under Clause 1.02 of ARTICLE I - TERRITORY AND SCOPE OF AGREEMENT. No I matter how comprehensive the planning effort may be, circumstances may dictate changes in plan or the identification of new requirements. The I purpose of planning, however, is to stabilize this process as much as possible, to promote sound, long-term decisions and ensure the orderly I development of Joint Use of Pole Units. I I 3.03 Planning Meetings I Both Parties, through the Joint Use Committee, shall ensure that: I (a) two formal joint meetings are held annually to review and update the five (5) year construction program of each Party relative to proposed Joint Use of Pole Units; I /9 I I SECTION 3 - PLANNING AND COORDINATION ~ (b) the personnel of both Parties meet or contact one another as required on I individual jobs as they are identified and for which Joint Use possibilities I exist; and I (c) before each Party submits its budget for approval for the next budget year, it determines as near as possible by discussion with the other Party, • the estimated cost of Joint Use Pole Units to be constructed in that year by each Party. I 3.04 Unidentified Pole Units I Both Parties recognize that it will not be possible to identify and document all Pole Units to be constructed within the five (5) planning period. However, t as such Pole Units are identified by a Party, it shall immediately notify in writing and co-ordinate for Joint Use and each Party should then organize its I resources so as to have the capability of fulfilling its obligations under this i Agreement. i I 3.05 Planning for Joint Use Ownership i Both Parties recognize that it is a mutual objective to obtain a Joint Ownership Ratio of 60% Hydro, 40% Newfoundland Telephone. Accordingly, where this Agreement provides that one Party shall Replace or i. place a Pole Unit, the Parties may agree that the other Party will Replace or /TO i I ! SECTION 3 - PLANNING AND COORDINATION • place the Pole Unit so as to assist in reaching the Joint Ownership Ratio of 60% Hydro, 40% Newfoundland Telephone. I I 3.06 Mixed Ownership I Both Parties recognize that one Party's ownership of a Pole Line is desirable where such ownership is a practical alternative to mixed ownership. I I t I I I I I I I • /11 I I SECTION 4 - APPLICATION AND PERMITS I 4.01 Initial Contact I Where either Party: • (a) wishes to place Attachments on a Pole belonging to the other Party which is not a Joint Use Pole; or I (b) wishes to place additional Attachments, or upgrade existing Attachments I on a Joint Use Pole belonging to the other Party; I an authorized representative shall contact an authorized representative of the other Party to determine if such Joint Use can be achieved. I I 4.02 Exception to Procedure The procedures in this Section 4 shall not be required for additional I Attachments or upgraded Attachments on a Joint Use Pole that would not significantly increase the loading on the Pole such as service drops, street I lights, transformer changes, etc. I 4.03 Application for Permit I (a) Where the Tenant, or prospective Tenant, wishes to obtain a Permit, it I shall apply by Joint Use Request to the Owner, or prospective Owner, in - the form shown in SECTION 16 - JOINT USE REQUEST FORM, together i• with engineering plans and shall specify the location of the Pole in I SECTION 4 - APPLICATION AND PERMITS question, the amount of space required, the character of the J Attachments including the number, type and diameter of existing or proposed conductors and cables, the character of the circuits to be used, I and, where applicable, the existing span lengths. I (b) In case of emergency, oral notification subsequently confirmed by written I Application may be given. I 4.04 Processing of Application (a) Where the Application is acceptable to the Owner, the Owner shall I indicate approval by signing the original copy of the Application which shall constitute a Permit. Upon receipt of the Permit, the Tenant shall t have the right to use the space for Attachments of the character specified on the Application. The Application is to be returned in a timely manner, I which period should not exceed thirty (30) days. I (b) Where the Application is unacceptable to the Owner, the Owner shall I return a copy to the Tenant in a timely manner, which period should not exceed thirty (30) days, indicating that Joint Use is unacceptable. I 4.05 Permits for Existing Joint Use Poles Existing Poles owned by either Party which were in Joint Use prior to the I date of this Agreement shall be included under this Agreement and all I Permits now in force for the Joint Use of Poles shall be deemed to be I approved Permits under the terms of this Agreement. i /13 I I SECTION 5 - ESTABLISHING JOINT USE OF EXISTING POLE UNITS I 5.01 Application of this Section I This Section 5 applies to the establishment of Joint Use of existing Pole I Units of a Party . I 5.02 Replacement of Pole Units I Where there is Replacement of Pole Units the Party undertaking the Replacement shall make any other necessary changes, including Line I Clearing in the Pole Line containing the Pole Unit, as may be necessary to meet the requirements of SECTION 19 - CONSTRUCTION PRACTICES. I I 5.03 Owner Undertakes Replacement of Pole Units Where Pole Units are not suitable, as provided in SECTION 19 - I CONSTRUCTION PRACTICES, for the proposed Tenant's Attachments and | the Owner agrees to Replace the Pole Units, the Owner shall Replace the • Pole Units. The costs involved in Transferring, Rearranging or removing the I Attachments of the Parties shall be paid by the Tenant as provided in SECTION 8 - TRANSFER COSTS. The Tenant shall pay to the Owner the I Sacrificed Value for each Pole Unit Replaced by the Owner for which the Tenant is required by SECTION 8 - TRANSFER COSTS to pay Transfer costs. I 5.04 Tenant Undertakes Replacement of Pole Units I Where Pole Units are not suitable, as provided in SECTION 19 - CONSTRUCTION PRACTICES, for the proposed Tenant's Attachments and /14 I I SECTION 5 - ESTABLISHING JOINT USE OF EXISTING POLE UNITS I the Owner does not agree to Replace the Pole Units, the Tenant shall Replace the Pole Units. The costs involved in Transferring, Rearranging, or I removing the Attachments of the Parties shall be paid by the Tenant as provided in SECTION 8 - TRANSFER COSTS. The Tenant shall pay to the I Owner the Sacrificed Value for each Pole Unit Replaced for which the Tenant I is required by SECTION 8 - TRANSFER COSTS to pay Transfer costs. I 5.05 Additional Joint Use Pole Units in Existing Pole Lines I a) Where a proposed Tenant requires, in reasonable engineering judgment, I that an additional Pole Unit be installed in an existing Pole Line and the Owner does not require the additional Pole Unit, the Owner will install r the additional Pole Unit and the Tenant shall pay the attachment costs of i both Parties. b) Where both Parties require that an additional Pole Unit be installed in an i existing Pole Line, the Parties shall decide which Party shall install the Pole Unit based on normal Pole placement arrangements between the i Parties in the area and each Party shall bear its own attachment costs. c) Where one Party requires a Joint Use Pole Unit in a non- Joint Use Pole I Line or where a Party desires an additional Pole Unit which is not required in reasonable engineering judgment for Joint Use, then the I Owner will install the Pole Unit and the Party requiring the Pole Unit will pay the attachment costs of both Parties and pay to the other Party a I i /15 i I I SECTION 5 - ESTABLISHING JOINT USE OF EXISTING POLE UNITS i percentage of the cost of the Joint Use Pole Unit equal to the other Party's percentage in the Joint Use Ratio. I I 5.06 Installing and Modifying Attachments I Each Party shall supply and install, Transfer, Rearrange, and remove its own Attachments on the Poles, including any special equipment such as I protection, special crossarms, guys or other types of construction required to sustain unbalanced loads due to its Attachments. Each Party shall perform I such work promptly and in such a manner as not to interfere with the I service of the other Party. t 5.07 Pole Top Extensions I A Pole Top Extension may serve as an expedient where clearance cannot be I met without Replacing Poles or making other extensive Rearrangements of the Pole Units. It is not intended to be used as an alternative for selecting I the correct length of Pole when designing new Pole Units. Where Pole Top Extensions are used, they shall be provided and installed at the sole expense I of the Party using them. When the supporting Pole requires Replacing, the Pole Top Extension shall be removed at the expense of the Party owning it I and the new Pole to be placed shall be of such dimensions as to provide the I clearance as provided in SECTION 19 - CONSTRUCTION PRACTICES. I /16 I I I SECTION 5 - ESTABLISHING JOINT USE OF EXISTING POLE UNITS m 5.08 Modification to be Made Prior to Attaching • Existing Pole Units shall be brought into conformity with SECTION 19 - • CONSTRUCTION PRACTICES, before any Attachments requiring a Permit are placed by the Tenant. I I I I r i i i i i I j SECTION 6 - ESTABLISHING JOINT USE OF NEW POLE UNITS 6.01 Application of this Section I This Section 6 applies to the establishment of Joint Use of new Pole Units. I I 6.02 Co-ordination and Ownership I The construction of new Pole Units shall be co-ordinated between the Parties to reach agreement concerning Pole ownership, details of construction and I proposed completion dates. Due regard shall be given to the service needs of the customers of the Parties. For the purpose of this Section 6, new Pole I Units include: r (a) new Pole Lines; (b) extensions to existing Pole Lines; i (c) major reconstruction of existing Pole Lines, e.g. due to deterioration or highway alteration; and i (d) additional Poles for crossovers, guying, providing service, or as may be i required by the Parties. i 6.03 Construction of Joint Use Pole Units. i The Owner shall design the Pole Units, obtain joint rights-of-way as provided I in SECTION 13 - RIGHTS - OF - WAY, construct the Pole Units and do the necessary Line Clearing to make the Pole Units suitable for Joint Use as I provided in SECTION 19 - CONSTRUCTION PRACTICES. The Owner shall i /18 i I SECTION 6 - ESTABLISHING JOINT USE OF NEW POLE UNITS I supply and install the Anchors required to withstand the combined guying needs of both Parties, even if more than one Anchor is required, and shall I bear the associated costs. I • 6.04 Joint Use Occupancy Time Frame I (a) Where the Tenant identifies that a Pole will be required for Joint Use, then billing shall commence following attachment or five (5) years after I placement of the Pole by the Owner, whichever comes first. I (b) Where the Tenant subsequently decides not to place an Attachment on the Pole and so notifies the Owner, and the Owner has incurred expenses L to provide for Joint Use of the Pole, the Tenant shall pay rental for the I Pole for a period of five (5) years from the date of such notification. I 6.05 Assumed Joint Use Poles New Poles placed in circumstances where it is obvious to the Owner that the • Tenant will be placing its Attachments on those Poles, shall be assumed to be Joint Use Poles and designated as Joint Use in the Joint Use File by the I Owner. The Owner shall provide to the Tenant a monthly listing of assumed Joint Use Poles added to the Joint Use File. The Tenant shall review the I monthly listing, identify those Poles on which the Tenant shall not be placing its Attachments and request that the Owner cancel the designation of those I Poles as Joint Use. I /19 I I SECTION 6 - ESTABLISHING JOINT USE OF NEW POLE UNITS J 6.06 Additional Non-Joint Use Pole Units I At the time of construction, the Owner may, if requested by the Tenant, place additional Non-Joint Use Pole Units which are required for the sole use I of the Tenant. Upon completion of such work the Owner may invoice the Tenant for its actual costs. Such Pole Units will become the property of the I Tenant upon payment of the invoice. I I 6.07 Responsibility for Installing Attachments I Each Party shall supply and install, at its own expense, its own Attachments on new Joint Use Poles, including any special equipment such as protectors, I special crossarms and guys or other types of construction required to sustain unbalanced loads due to its Attachments. Each Party shall perform such I work promptly and in such a manner as not to interfere with the service of the other Party. Each Party will place its Attachments on new Joint Use I Poles as provided in SECTION 19 - CONSTRUCTION PRACTICES. I I 6.08 Pole Identification All new Joint Use Poles are to be marked to show ownership and date I placed and shall be numbered as provided in SECTION 19 - CONSTRUCTION I PRACTICES. I /20 I I SECTION 7 - ADDING. CHANGING REPLACING AND RELOCATING EXISTING I JOINT USE POLE UNITS OR ATTACHMENTS 7.01 Application of this Section I This Section 7 applies to additions and changes to existing Joint Use Pole I Units or Attachments. I 7.02 Replacement of Pole Units I Where there is Replacement of Pole Units, the Party undertaking the I Replacement shall make any other necessary changes, including Line Clearing in the Pole Line containing the Pole Units, as may be necessary to I meet the requirements of SECTION 19 - CONSTRUCTION PRACTICES. I I 7.03 Owner Undertakes Replacement of Pole Units • Where Joint Use Pole Units are not suitable, as provided in SECTION 19 - • CONSTRUCTION PRACTICES, for the proposed additional Attachments, and • the Owner agrees to Replace the Pole Units, the Owner shall Replace the Pole Units. The costs involved in Transferring, Rearranging, or removing the • Attachments of the Parties shall be paid as provided in SECTION 8 - TRANSFER COSTS. The Tenant shall pay to the Owner the Sacrificed Value I for each Pole Unit Replaced for which the Tenant is required by SECTION 8 - TRANSFER COST to pay Transfer costs. I I. /21 I SECTION 7 - ADDING. CHANGING REPLACING AND RELOCATING EXISTING JOINT USE POLE UNITS OR ATTACHMENTS 7.04 Tenant Undertakes Replacement of Pole Units I Where Pole Units are not suitable, as provided in SECTION 19 - CONSTRUCTION PRACTICES, for the proposed additional Attachments and I the Owner does not agree to Replace the Pole Units, the Tenant shall Replace the Pole Units. The costs involved in Transferring, Rearranging, or I removing the Attachments of the Parties shall be paid as provided in SECTION 8 - TRANSFER COSTS. The Tenant shall pay to the Owner the I Sacrificed Value for each Pole Unit Replaced for which the Tenant is required I by SECTION 8 - TRANSFER COSTS to pay Transfer costs. I 7.05 Additional Pole Units in Existing Joint Use Pole Lines I (a) Where one Party requires, in reasonable engineering judgment, that an I additional Pole Unit be installed in an existing Joint Use Pole Line and the other Party does not require the additional Pole Unit, the Owner will I install the additional Pole Unit and the Party requiring the additional Pole I Unit shall pay the attachment costs of both Parties. (b) Where both Parties require that an additional Pole Unit be installed in an I existing Joint Use Pole Line, the Parties shall decide which Party will install the additional Pole Unit based on normal Pole placement I arrangements between the Parties in that area and each Party shall bear I its own attachment costs. I /22 I I SECTION 7 - ADDING. CHANGING REPLACING AND RELOCATING EXISTING \ JOINT USE POLE UNITS OR ATTACHMENTS (c) Where one Party requires a Joint Use Pole Unit in a non-Joint Use Pole I Line or where a Party desires an additional Pole Unit which is not required in reasonable engineering judgment for Joint Use, then the I Owner will install the Pole Unit and the Party requiring the Pole Unit will I pay the attachment costs of both Parties and pay to the other Party a percentage of the cost of the Joint Use Pole Unit equal to the other I Party's percentage in the Joint Use Ratio. I 7.06 Replacement of Substandard Joint Use Poles I (a) Substandard Poles in Region 1 which were placed prior to January 1, 1984 shall be Replaced by the Owner before additional Attachments I requiring a Permit are placed on those Poles and each Party shall bear its own Transfer costs. Substandard Poles in Region 1 which were placed r after January 1,1984 shall be Replaced by the Owner before additional Attachments requiring a Permit are placed on those Poles, and the i Transfer costs of both Parties shall be paid by the Owner. i (b) Substandard Poles in Region 2 which were placed prior to January 1, i 1993 shall be Replaced by the Owner before additional Attachments requiring a Permit are placed on those Poles and the following rules shall i apply: i (i) except as provided in Sub-section 7.06 (b) (ii) and (iii), such Poles shall be deemed not to be Substandard Poles; i /23 I SECTION 7 - ADDING. CHANGING REPLACING AND RELOCATING EXISTING I JOINT USE POLE UNITS OR ATTACHMENTS (ii) where a Pole fails to meet CSA standards for the Owner's non- Joint Use, the Owner shall Replace the Pole and each Party shall bear its I own Transfer cost; and I (iii) in cases where it can be reasonably established that a transformer was placed subsequent to the attachment of the initial communication I cable, Hydro shall bear the cost of Sacrificed Value and shall pay the I Transfer costs of both Parties. I (c) Substandard Poles in Region 2 which were placed after January 1, 1993, shall be Replaced by the Owner before additional Attachments requiring a I Permit are placed on those Poles, and the Transfer costs of both Parties shall be paid by the Owner. I 7.07 Replacement of Specific Poles I Where a Joint Use Pole carrying Attachments such as distribution terminals, • load coils, repeaters, cross boxes, air dryers, terminals of aerial cable, transformers, service wires, underground connections, etc., or at such • locations as dead ends, corners, junctions, etc., is to be Replaced, the new Pole should be placed in the same hole which the Replaced Pole occupied. I However, if this is not practical, the Pole shall be placed in a location which will satisfactorily accommodate the Attachments of both Parties. In specific I situations, it may be necessary for the Parties to co-ordinate so as to ensure that the new Pole is placed in a mutually acceptable location to minimize the I cost to both Parties. L I /24 I I SECTION 7 - ADDING. CHANGING REPLACING AND RELOCATING EXISTING I JOINT USE POLE UNITS OR ATTACHMENTS I 7.08 Emergency Pole Replacements I To maintain or restore service during emergencies when immediate attention I is required, one Party may Replace Joint Use Poles owned by either Party and may temporarily secure the Attachments of the other Party in a safe I manner. In cases where Newfoundland Telephone owns the Pole, reimbursements for costs of such Pole Replacement shall be as provided in I Sub-section 17.04. In cases where Hydro owns the Pole, reimbursements for costs of such Pole Replacement will follow the same principles used in I Sub-section 17.04. I I 7.09 Transferring and Rearranging Attachments Where it is necessary to Replace, Transfer or Rearrange Attachments due to I the Replacement or relocation of a Joint Use Pole Unit, the Owner or Tenant, before making such change, shall issue a Joint Use Request. In case of I emergency, oral notice may be given and subsequently confirmed in writing. I Upon receipt of the Joint Use Request, the Owner or Tenant will Transfer or Rearrange its Attachments according to the following rules: I (i) Transfers during emergency - Attachments are to be Transferred or I Rearranged immediately after the Pole Replacement or relocation; I I /25 I I SECTION 7 - ADDING. CHANGING REPLACING AND RELOCATING EXISTING JOINT USE POLE UNITS OR ATTACHMENTS (ii) Transfers affecting service - Attachments are to be Transferred or Rearranged as soon as practicable but within thirty (30) days after the Pole Replacement or relocation; and (iii)Transfers not affecting service - Attachments are to be Transferred or Rearranged as soon as is reasonably practical, but in any event when the Joint Use Request is issued on or before August 31, the Transfer shall be completed no later than December 31 of the same year, or, when the Joint Use Request is issued after August 31, the Transfer shall be completed no later than August 31 of the following year. 7.10 Modifications to be Made Prior to Additional Joint Use Existing Pole Units shall be brought into conformity with SECTION 19 CONSTRUCTION PRACTICES, before any additional Attachments are made. 7.11 Requirements of Governing Bodies or Property Owners Where a Governing Body or property owner acting within the scope of its authority renders necessary or desirable the relocating, removing, or Replacing of a Joint Use Pole or the Transferring or Rearranging of Attachments thereon, the Owner shall notify the Tenant of such requirement without delay and the date on which the required work is to be done. The /26 I SECTION 7 - ADDING. CHANGING REPLACING AND RELOCATING EXISTING I JOINT USE POLE UNITS OR ATTACHMENTS work shall be carried out by the Parties as provided in Sub-section 7.09. I Each Party shall bear its own costs except that: •I (a) Where the Governing Body or property owner is to bear all or part of the ™ cost of the work, the Owner and the Tenant shall each make its own separate arrangements with the Governing Body or property owner for I the billing and collection of costs which are payable by the Governing Body or property owner. Failure of either Party to complete I arrangements with the Governing Body or property owner shall not interfere or hinder the right of the Owner to remove or relocate all of its I Pole Units and Transfer or Rearrange Attachments. I (b) Where a Joint Use Pole is upgraded because only the Tenant's I Attachments are too low to meet the requirements of the Governing Body, the Tenant shall pay to the Owner a percentage of the Sacrificed I Value of the Pole being Replaced equal to the Tenant's percentage in the I Joint Use Ratio. I I I I I I 121 I I ? SECTION 8 - TRANSFER COSTS 8.01 Calculation of Transfer Costs I Where one Party is required to pay the Transfer costs of the other Party, the I amount payable shall be calculated by multiplying the actual costs of the Transfer by the applicable Transfer cost factor set out in EXHIBIT C to I SECTION 17 - PRICE SCHEDULES. This Transfer cost factor shall not apply I to costs associated with Rearrangements. I 8.02 Transfer Costs and the Replacement of Pole Units I (a) Except as expressly provided elsewhere in this Agreement, where a Pole Unit is Replaced to accommodate the proposed or additional I Attachments of a Party, that Party shall pay the Transfer costs of the I other Party. I (b) Where a Pole Unit is replaced to accommodate the proposed or additional Attachments of a Party and the other Party performs an upgrade of its I own service capability at the time of the Replacement of the Pole Unit, which upgrade would have required the Replacement of the Pole Unit in I any event, then each Party shall bear its own Transfer costs associated I with that Pole Unit. (c) For purposes of Section 8.02 (b), the Replacement of a Pole which I cannot accommodate a transformer, with a longer Pole which can accommodate a transformer, will be considered an upgrade of service I capability where there is a reasonable indication that a transformer will /28 I I SECTION 8 - TRANSFER COSTS be placed on the Replacement Pole within five (5) years of the date of I Replacement. I I 8.03 Transfer of Attachments due to Routine Maintenance I Where Transferring of Attachments is involved in the Replacement of Joint Use Poles for reasons of routine maintenance, such as Replacing deteriorated or damaged Poles, subject to the provisions contained in ARTICLE X - LIABILITIES & DAMAGES, each Party shall bear the cost of Transferring its I own Attachments. I I 8.04 Transfer of Attachments due to Requirements of Governing Body Where a Governing Body or property owner acting within the scope of its I authority renders necessary or desirable the Transfer, Rearrangement or removal of Attachments, each Party shall bear the cost of Transferring, I Rearranging, or removing its own Attachments. I I 8.05 Transfer of Attachments due to Requirements of Others I Where the Transfer, Rearrangement, or removal of Attachments is to accommodate the requirements of Others, the Owner shall pay the cost of I Transferring, Rearranging, or removing both Parties' Attachments. I I /29 I I SECTION 8 - TRANSFER COSTS j 8.06 Pole Topping and Attachment Transfers I It is the responsibility of the Party Replacing a Pole to ensure that both the old Pole and the new Pole are protected by either Pole pinning or by using I Pole guards during the work process. The Parties will consult, and if the Parties agree that a Pole has to be topped, Hydro will complete the required I work. Pole topping and the associated Attachment Transfers requested by Newfoundland Telephone will be invoiced based on rates set out in SECTION I 17- PRICE SCHEDULES. I I r i i i I i i /30 I \ SECTION 9 - HYDRO CONTROL CABLES IN THE COMMUNICATION SPACE I 9.01 Policy. Planning and Coordination I In any area where Hydro desires to undertake installation of Control Cables in the communication space, suitable cost sharing and other arrangements I shall be agreed upon by the Parties. The Parties shall co-ordinate early in the planning stage of installation of Control Cables in the communication I space. I I I 1 I I I I I I I /31 I I I., SECTION 10 - MAINTENANCE OF POLE UNITS AND ATTACHMENTS I 10.01 Maintenance of Joint Use Pole Units The Owner shall maintain its Joint Use Pole Units in a safe and serviceable I condition in accordance with SECTION 19 - CONSTRUCTION PRACTICES and shall Replace deteriorated or damaged Joint Use Poles. Except as I otherwise provided in this Agreement or the Collateral Agreement, the cost I of maintaining and Replacing Pole Units shall be borne by the Owner. Each Party shall bear the cost of Transferring, Rearranging or removing its I Attachments. I I 10.02Maintenance of Attachments Each Party shall at all times maintain at its expense all of its Attachments in accordance with SECTION 19 - CONSTRUCTION PRACTICES and shall keep them in safe condition and good repair; provided however, that for any I Attachments installed prior to January 1, 1984 in Region 1 and prior to January 1, 1993 in Region 2, neither Party shall be required to Rearrange I any Attachments from one side of a Joint Use Pole to the other side. I I 10.03Maintenance of Rights-of-Way I (a) Any vegetation control necessary to maintain clearance requirements of both Parties on existing Joint Use Lines should normally be performed by I the Owner of the Pole Line. Where there is a hazard in clearing adjacent ( to energized power lines on Poles owned by Newfoundland Telephone, Hydro may do such clearing and be reimbursed by Newfoundland I /32 I \ SECTION 10 - MAINTENANCE OF POLE UNITS AND ATTACHMENTS Telephone. For vegetation control on lines with mixed Pole ownership, I Newfoundland Telephone shall reimburse Hydro a percentage of the cost equal to the percentage of the Pole Line owned by Newfoundland I Telephone. I (b) Before Hydro submits its plan for Joint Use vegetation control for the next budget year, it will notify Newfoundland Telephone of the communities in I which this work is planned and the estimated cost. Newfoundland I Telephone's requirements for vegetation control around existing communication cables shall be provided to Hydro, which requirements I shall be communicated by Hydro to its employees or agents that will perform the work. Newfoundland Telephone's representatives shall be I provided with an opportunity to inspect the completed work before payment. I I I I I I I /33 I I I V SECTION 11 - TERMINATION OF JOINT USE 11.01 Termination of Joint Use by Owner I (a) Where the Owner has no further requirement for any Joint Use Pole Unit, I it shall give notice in writing to the Tenant at least one hundred and eighty (180) days prior to the date on which it intends to remove its i Attachments and the Tenant shall have the right, prior to the expiration of the notice, to purchase the Pole Unit at its Structural Value as i provided in SECTION 17 - PRICE SCHEDULES. i (b) Where the Tenant desires to purchase the Pole Unit it shall notify the I Owner in writing to that effect within the period of notice provided in t Sub-section 11.01. A bill of sale to cover the transfer of ownership of the Pole Unit shall be prepared and executed. I (c) Where the notice in Sub-section 11.01 (a) is given, either: I i) on or before August 31, and the Owner has removed its I Attachments from the Pole, but the Tenant has not removed all of its Attachments by December 31, of the same year; or I ii) after August 31, and the Owner has removed its Attachments I from the Pole but the Tenant has not removed all of its Attachments, by August 31, of the following year, then notwithstanding the provisions of Sub-section 11.02, the Pole Unit I shall become the property of the Tenant. In such event, the Tenant shall - save harmless the former Owner from all obligations, liabilities, damages, I, costs, expenses, and charges incurred thereafter because of, or arising I /34 I \ SECTION 11 - TERMINATION OF JOINT USE out of, the presence or condition of the Pole Unit or Attachments and a I bill of sale to cover the transfer of ownership of the Pole Unit shall be prepared and executed and the Tenant shall pay the Owner the I Structural Value of the Pole Unit as provided in SECTION 17 - PRICE i SCHEDULES. I 11.02 Termination of Joint Use bv the Tenant I (a) Where the Tenant desires, at any time, to discontinue the Joint Use of a Pole Unit, it shall give to the Owner an appropriate Joint Use I Request in the form provided in SECTION 16 - JOINT USE REQUEST _ FORM, which shall specify the location of the Pole Unit in question • and the Tenant shall remove from the Pole Unit any and all of its w" Attachments. Upon being satisfied that all Attachments of the ""' Tenant have been removed from the Pole Unit, the Owner shall • indicate acceptance by signing the Joint Use Request and shall return a copy to the Tenant. I (b) Except as provided in Sub-section 11.02 (c), the Tenant shall pay to i the Owner the full rental for the Pole Unit for the calendar year in which the Attachments are removed. i (c) Where in the five (5) years immediately preceding removal of the I Attachments, the Owner has, at the request of the Tenant, incurred expenses to provide for Joint Use of the Pole, the Tenant shall pay I rental for the Pole from the date of removal of the Attachments to the date five (5) years after the date of Attachment to the Pole. /35 i I 1 SECTION 12 - HIERARCHY OF SIGNING AUTHORITY 12.01 Transaction Approvals • I Transactions listed below require the signing authorities as shown: • Newfoundland Transaction Hydro Telephone I Agreement Approval President President Amendment of Administrative Practices Vice-President Vice-President | Amendment of Construction Practices Vice-President Vice-President Notice of Default President President I Joint Use Request Senior Supervisor Engineer- I Outside Plant Termination of Agreement President President I Transactions not specifically listed above may be approved by the signature I of a single officer of Hydro and a single officer of Newfoundland Telephone. I 12.02 Change of Authorities I By written notice under this Agreement, either Party may change its own I signing authorities as provided in Sub-section 12.01. I I I /36 I \ SECTION 13 - RIGHTS-OF-WAY 13.01 Tenant Riahts-of-Way I Where existing Pole Units are to be brought under Joint Use, the Tenant I shall be responsible for obtaining such easements or rights-of-way as it I may require and shall bear the associated costs. I 13.02 Joint Riahts-of-Way I (a)Where new Joint Use Pole Units are proposed, the Owner will obtain joint easements and joint rights-of-way. When the Parties mutually I agree, the Tenant may obtain the joint easements and joint rights-of- I way at the expense of the Owner. Neither Party warrants to the other that any joint easement or joint right-of-way obtained by it is I valid or sufficient for the other Party's purpose. It is understood that neither Party can guarantee that the easement grantor has the legal I authority to grant the required easement. Each Party will be I responsible for its own relocation cost if such easement is invalid. I (b) Where only verbal permission for Anchors is obtained and relocation or removal is required, then each Party shall bear the associated cost I of its own Pole Units. I I I I /37 I I I SECTION 13 - RIGHTS-OF-WAY 13.03 Distribution Line Easements All distribution line easements are to be acquired as outlined in Sub- I sections 13.02 and 13.06 and the Party installing the Pole is responsible I for obtaining such easements. I 13.04 No Warranty for Use of Owner's Rights-of-Way I The Owner gives no warranty of permission from property owners, I municipalities or Others for the use of the Owner's right-of-way by the Tenant, and if objection is made and the Tenant is unable to adjust the I matter satisfactorily within one hundred and eighty (180) days the Owner may then, by notice in writing at any time, require the Tenant to I remove its Attachments from the Pole Units involved, and where the notice is given, either: (i) on or before August 31, then the Tenant shall I remove its Attachments from the Pole Units at its own expense by December 31 of the same year; or (ii) after August 31, then the Tenant I shall remove its Attachments from the Pole Units at its own expense by I August 31 of the following year. Nothing in this Section shall be deemed to confer to the Tenant any authority to maintain its Attachments on the I Owner's Pole Units , or otherwise to infringe upon any legal rights of the property owners, municipalities or Others. I I 13.05 Clearing of Riahts-of-Way Where the Tenant adds, Replaces, Transfers, or Rearranges Poles and/or I Attachments to existing Pole Units, the Tenant shall be responsible for all ( /38 I I SECTION 13 - RIGHTS-OF-WAY necessary Line Clearing and/or trimming. At the request of the Tenant, I the Owner may carry out the required tree clearing and/or trimming and I the Tenant shall bear the cost. I 13.06 Right-of-Way Acquisition I The following procedures are to be followed when acquiring rights-of- I way that are required for installation of Joint Use Pole Units: B (a)AII rights-of-way shall be acquired by the acquisition of easement M rights excepexceptt wherwhere aa licenslicense isi acquired or the fee simple title to the relevant property is purchased. r (b)AII rights-of-way boundaries shall be adequately defined (i.e.: referenced to landmarks, survey monuments, etc.) so as to provide i for future boundary determination. While the location of Pole Units in relation to the right-of-way boundaries should be indicated, Pole Units i should not be used as boundary references. I (c) All rights-of-way shall be obtained prior to the installation of Pole i Units by either Party. I (d) Where an easement is required but cannot be obtained by negotiation and no practical alternate route exists, the easement shall be acquired i through the procedures outlined in the Hydro Corporation Act, R.S.N. i 1990, c. H-16, the Public Utilities (Acquisition of Lands) Act, R.S.N. /39 i I SECTION 13 - RIGHTS-OF-WAY 1990, c. P-48 or the Telecommunications Act, S.C. 1993, c. 38. This procedure shall only be used as a last resort. I (e) Installation of Pole Units on property over which the property owners will only give written or verbal permission (i.e. no easement) shall be I avoided whenever possible. I (f) An easement shall not be required where the Pole Units are used only I to service the particular property upon which they are installed. If there is a reasonable expectation that the Pole Units may be used to I service adjacent properties, reasonable efforts to obtain an easement shall be made, with adequate provision to extend the Pole Units to I such adjacent properties. I (g) Where a right-of-way is required over Crown land, application shall be made in a reasonable time before the anticipated construction start I date. In determining a reasonable time, the Parties shall have I reference to the practices of the appropriate government authority. (h) All reasonable efforts shall be made to ensure that the name of the I grantor(s) appearing on the right-of-way document reflects current I ownership of the pertinent property. I Duly executed right-of-way documents shall be registered at the Registry of Deeds for Newfoundland and thereafter filed at the records office of each I Party. /40 I SECTION 14 - RENTALS I 14.01 Revenue Neutrality (a) In this section "revenue neutrality" shall be achieved in the calendar I year following the attainment of a Joint Ownership Ratio of 60% I Hydro, 40% Newfoundland Telephone. I (b) Until revenue neutrality is achieved rentals between the Parties shall be calculated as provided in this Section 14. I (c)After revenue neutrality is achieved the Parties shall not be required I to: (i) perform the calculations necessary to comply with Sub- I sections 14.02, 14.03, 14.04, 14.05, 14.06, and 14.08 or r (ii) to comply with Sub-sections 14.07 (b) and (c), and 14.09. i 14.02 Annual Carrying Charge i The annual carrying charge for Joint Use Pole Units for each Party shall I be calculated by multiplying its average embedded cost of a Pole Unit by its annual carrying charge rate except that, in each calendar year, the I difference between the annual carrying charge rates of the Parties, and the difference between the average embedded costs of the Parties, shall I not exceed 5 percent of the lower rate or cost. Where it does exceed 5 percent, then for the purpose of the calculation, the higher rate or cost I shall be deemed to be equal to 105 percent of the lower rate or cost. I i /41 I SECTION 14 - RENTALS I 14.03 Composition of Annual Carrying Charge Rate The annual carrying charge rate of each Party shall include without I limitation, such expense items as depreciation, maintenance, I administration and taxes as well as return on Joint Use Pole Units. I 14.04 Basis of Rental Rates I Rental rates shall be computed annually and represent an equitable share I of the annual carrying charge for each Pole Unit. The annual rental rate for each Pole Unit of the Owner, shall be calculated by multiplying the I annual carrying charge, as calculated in Sub-section 14.02, by the percentage of the Joint Use Ratio ascribed to the Tenant in ARTICLE VIII t - RENTALS. I I 14.05 Composition of Embedded Costs I The average embedded cost of a Joint Use Pole Unit shall be assumed to be equal to the average embedded cost of all treated wood Pole Units I owned by each of the Parties. Embedded costs shall include, without limitation, engineering, design and construction costs, land and easement J acquisition costs, and material, labour and Owner's overhead costs. Notwithstanding anything contained in this Agreement, Newfoundland I Telephone's calculation of average embedded cost shall not include the B embedded cost of Pole Units formerly owned by Terra Nova I, Telecommunications Inc., and, Hydro's calculation of average embedded I /42 I I SECTION 14 - RENTALS • cost shall not include the embedded cost of Pole Units used as transmission line poles. I I 14.06 Calculation of Annual Carrying Charge I The annual carrying charge per Joint Use Pole Unit for each Party shall be calculated using the embedded cost as at December 31 of the P preceding year and the annual carrying charge rates as at December 31 of the preceding year. The annual rental rates shall be effective for each I calendar year. I w 14.07 Data to be Exchanged Annually • No later than March 15 of each year, each Party shall submit a written statement to the other Party giving the following information: I (a) The total number of Poles owned on December 31 of the preceding I year. I (b) The total embedded cost of Pole Units owned on December 31 of the preceding year. I (c) The calculation of the annual carrying charge rate for the preceding I year. I I /43 I I SECTION 14 - RENTALS (d) Total number of Joint Use Poles occupied as Owner on December 31 I of the preceding year. i (e) Total number of Joint Use Poles occupied as Tenant on December 31 i of the preceding year. i (f) In the event of any discrepancy between the information provided by the Parties, the discrepancy shall be referred to the Joint Use i Committee. i 14.08 Rentals i (a) Net annual Rentals for each calendar year shall be calculated annually prior to April 1 of the current year by multiplying the Owner's number i of Joint Use Poles at December 31 of the previous year by the rental • rate calculated in Sub-Section 14.04. One twelfth (1/12) of the net annual rentals of the Parties shall be invoiced monthly throughout the I calendar year. For the months of January, February and March of the current year, the amount invoiced shall be the same as invoiced in I December of the previous year, and an adjustment for these three months shall be calculated and invoiced as soon as the net annual i rentals are calculated for the current year. i (b) In the event that the calculation of the net annual rentals is delayed beyond April 1, the amount invoiced monthly until the calculation is i completed shall be the amount invoiced in March; and an adjustment shall be calculated and invoiced as soon as the calculation is completed. /44 i I SECTION 14 - RENTALS ! I 14.09 Details of Rental Calculations i The Joint Use rentals for the period January 1 to December 31, 1995 as I detailed on Sheets 2 to 7 inclusive of Exhibit A of this Section 14 are hereby approved and similar calculations shall be performed annually. • The form attached as Sheet 1 of Exhibit A of this Section shall be used for approval of the annual calculation of Joint Use rentals. i i 14.10 Annual Review i Utilizing the information provided under Sub-Section 14.07 hereof, and w"~ such additional information as may be necessary, the Parties shall carry out an annual review in order to ascertain whether the required Joint • Ownership Ratio specified in Clause 7.03 of ARTICLE VII - OWNERSHIP has been achieved. i 14.11 Joint Use File I Both Parties agree to use the Joint Use File to record the following: i (a) the total number of Joint Use Poles; § (b) the total number of Attachments by the Parties and by Others; (c) the number of Poles occupied by each Party as Owner and as I Tenant: B (d) the number of Attachments made by each Party; and I (e) the number of Poles occupied by CATV Companies. | /45 i I SECTION 14 - RENTALS I Both Parties shall have access to the Joint Use File and all transactions • between the Parties or between the Parties and Others shall be based on the numbers contained in the Joint Use File. The Joint Use File shall be • based upon the system for recording Pole and Attachment numbers, developed and currently used by Hydro. The system may be updated or I replaced by written agreement of both Parties. I I I I I I I I I I I /46 I I SECTION 14 - RENTALS Administrative Practices Section 14 Exhibit A I Sheet 1 of 7 I APPROVAL OF RENTALS I Joint Use Rentals for the period January 1, 1995, to December 31, 1995, as calculated in the Administrative Practices, Section 14, Exhibit A in the attached I sheets 2 to 7 inclusive are hereby approved. I I NEWFOUNDLAND AND LABRADOR HYDRO NEWFOUNDLAND TELEPHOffib L-UMFANY LIMITED I DATE: X\ DATE: I I I I I I I I /47 I SECTION 14 - RENTALS \ Administrative Practices I Section 14 Exhibit A I Sheet 2 of 7 I STATEMENT OF RENTALS FOR I JANUARY 1, 1995, TO DECEMBER 31, 1995 I The number of Joint Use Poles at December 31, 1994, as agreed by both Parties. I JOINT USE POLES TELEPHONE OWNED HYDRO OWNED TOTAL I 3,140 23,450 26,590 I NEWFOUNDLAND TELEPHONE RENTALS FOR HYDRO POLES I 23,450 Joint Use Poles @ $41.13 $964,499 I HYDRO RENTALS FOR NEWFOUNDLAND TELEPHONE POLES 3,140 Joint Use Poles @ $65.89 $206.895 I I NET ANNUAL RENTAL $757,604 NET MONTHLY BILLING TO NEWFOUNDLAND TELEPHONE FOR I PERIOD JANUARY 1. 1995. TO DECEMBER 31, 1995 I 1/12 OF 757,604 $ 63,134 I I /48 I I SECTION 14 - RENTALS Section 14, Exhibit A I Sheet 3 of 7 CALCULATION OF JOINT USE RENTAL RATES • EFFECTIVE JANUARY 1, 1995, TO DECEMBER 31, 1995 I EMBEDDED COST AT DECEMBER 31,1994 HYDRO TELEPHONE POLES POLES . BARE POLES $24,053,400 CRIBS 1,601,422 I RIGHT OF WAY 884,848 • ANCHORS 5,758,671 GROUNDING @ 2.2% OF BARE POLES 529,175 ^ TOTAL PLANT IN SERVICE $44,770,438 I LESS GUY INVESTMENT 3.133.931 | TOTAL $32,827,516 $41,636,507 POLES IN SERVICE 55,650 69,384 I EMBEDDED COST/POLE TOTAL COMPANY 589.89 600.09 I ANNUAL CARRYING CHARGE RATE 17.43% 18.50% I 5% CAP VARIANCE 18.30% JOINT USE RATIO 60% 40% " ANNUAL JOINT USE RENTAL RATE $41.13 $65.89 I (Embedded Cost/Pole x Annual Carrying Charge Rate x Joint Use Ratio) /49 ( I I I SECTION 14 - RENTALS Administrative Practices I Section 14 Exhibit A I Sheet 4 of 7 I ANNUAL CARRYING CHARGE RATES 1994 I - HYDRO TELEPHONE AVERAGE ANNUAL FIXED CHARGE RATE 13.00% 16.39% I TREATED POLE & ANCHOR OPERATING COST 4.43% 2.11% • TOTAL 17.43% 18.50% r i i i i i i I i /50 i I \ SECTION 14 - RENTALS Administrative Practices Section 14, Exhibit A I Sheet 5 of 7 NEWFOUNDLAND TELEPHONE COMPANY LIMITED CALCULATION OF LEVELIZED RATE OF RETURN, INCOME TAX, AND I AVERAGE ANNUAL FIXED CHARGE RATE - 1994 I COST OF MONEY DEBT 48.30% @ 10.00% = 4.83% COMMON EQUITY 51.70% @ 13.00% = 6.72% I 11.55% I INCOME TAX RATE 43.09% CAPITAL RECOVERY FACTOR 11.55% for 27 Year Life 12.19% LESS DEPRECIATION Straight Line for 27 Year Life 3.70% I LESS DEFERRED TAX (CCA - Depreciation) * Income Tax Rate -0.32% RATE OF RETURN 8.81% LEVELIZED BOND INTEREST Debt * Rate of Return 3.68% I Wgt Avg Cost of Capital I LEVELIZED CAPITAL COST (CCA) Capital Recovery Factor * Depreciation 2.96% Wgt Avg Cost of Capital + Depreciation I INCOME TAX CAPITAL RECOVERY FACTOR 12.19% LESS LEVELIZED CAPITAL COST 2.96% I 9.23% LESS LEVELIZED BOND INTEREST 3.68% 5.55% I INCOME TAX @ 43.09% (Capital Recovery Factor - (CCA + Lev. IntU* Income Tax Rate 4.20% 1- Income Tax Rate I CALCULATION OF AVERAGE ANNUAL FIXED CHARGE RATE RATE OF RETURN 8.81% STRAIGHT LINE DEPRECIATION 3.70% I INCOME TAX 4.20% DEFERRED TAX -0.32% I AVERAGE ANNUAL FIXED CHARGE RATE 16.39% /51 I • SECTION 14 - RENTALS I Administrative Practices Section 14 Exhibit A I Sheet 6 of 7 I NEWFOUNDLAND AND LABRADOR HYDRO I AVERAGE ANNUAL CARRYING CHARGES " 1994 I I LEVELIZED RATE OF RETURN Debt 13.00% Less Depreciation 3.33% • 9.67% STRAIGHT LINE DEPRECIATION (Distribution) 3.33% •-- MAINTENANCE & ADMINISTRATION COSTS 4.43% I TOTAL 17.43% I I I I I I /52 I I SECTION 14 - RENTALS Administrative Practices I Section 14 Exhibit A I Sheet 7 of 7 I NEWFOUNDLAND TELEPHONE COMPANY LIMITED CALCULATION OF TREATED POLE & ANCHOR OPERATING COST I 1994 I POLE & ANCHOR MAINTENANCE MAINTENANCE COST $ 220,337 I POLE & ANCHOR PLANT IN SERVICE (Average 1994) $ 39,597,893 MAINTENANCE FACTOR Maintenance Cost _ *100 0.56% I Pole & Anchor Plant in Serv. OVERHEAD I OUTSIDE PLANT (Planning & Engineering) $ 66,727 BILLING RECORDS, ETC. $ 59,203 EXECUTIVE & ADMINISTRATION S 260,468 OTHER (General Services, Licenses, etc.) $ 228.450 I $ 614,848 OVERHEAD FACTOR Overhead "100 1.55% I Pole & Anchor Plant in Serv. I TOTAL TREATED POLE AND ANCHOR MAINTENANCE 2.11% I \ I I I /53 I I SECTION 15 - RENTALS FROM OTHERS 15.01 Sharing of CATV Rentals (a) The Parties agree that all rentals due from the CATV Companies for attachments in the communication space of Joint Use Poles shall be shared in the ratio of 62.5% Newfoundland Telephone, 37.5% Hydro up to the common rates per Pole charged by the Parties. CATV revenues generated by rate differentials higher than the common rates shall be shared on a 62.5% / 37.5% basis in favour of the Party with the higher rate. (b) The sharing of rentals due in Section 15.01 (a) above shall be achieved according to the following rules: (1) Where the rate charged to the CATV Company for the attachment is the same whether the Pole is owned by Newfoundland Telephone or Hydro: (i) Newfoundland Telephone 62.5% (ii) Hydro 37.5% (2) Where the rate charged to the CATV Company for the attachment is greater if Newfoundland Telephone owns the Pole than if Hydro owns the Pole: (i) Newfoundland Telephone 62.5% (ii) Hydro 37.5 % (3) Where the rate charged to the CATV Company for the attachment is greater if Hydro owns the Pole than if Newfoundland Telephone owns the Pole: i /54 I I SECTION 15 - RENTALS FROM OTHERS (i) Newfoundland Telephone 62.5% of the applicable I Newfoundland Telephone rate plus 37.5% of the difference between the Newfoundland Telephone rate I and the Hydro rate; I (ii) Hydro 37.5% of the applicable Newfoundland Telephone rate plus 62.5% of the difference between the Newfoundland Telephone I rate and Hydro rate; I (c)The CATV rentals for the period January 1 to December 31, 1994, are shown I on Exhibit "A" and similar calculations shall be performed annually. I 15.02 Distribution of Rentals From Others I (a) Subject to Sub-section 15.02 (b) below, it is agreed that rentals due from I Others, which are not a CATV Company, for attachments in the communication space of Joint Use Poles shall be shared between I Newfoundland Telephone and Hydro in the manner provided in Sub-section 15.01 as if the phrase "CATV Companies" in 15.01 read "Others". I (b) Where only one Party has established a rate to be charged to a specific I person, firm, or corporation, then that Party shall notify the other Party of the rate to be charged, and the second Party shall take all reasonable steps to I establish a rate to be charged. Once the rate of the second Party is established, then for the purpose of sharing rentals due this rate shall be I deemed to have existed from the date upon which the specific person, firm or I corporation first attached in the communication space of a Joint Use Pole ( /55 I I I SECTION 15 - RENTALS FROM OTHERS • owned by the Second Party. Prior to the date upon which the rate of the second Party is deemed to have come into effect, the rentals due from the specific person, firm, or corporation shall be shared on a 62.5%/37.5% basis i in favour of Newfoundland Telephone. i i 15.03 Attachment Outside the Communication Space | Before either Party allows attachment by any Others to Joint Use Poles where such _ attachment would be outside the communication space, the Parties must agree on I the sharing proportion of the rentals due from such Others for such attachment. • 15.04 Payment All payments under this Section 15 shall be handled in accordance with ARTICLE | XV - INVOICES AND PAYMENTS. I I I I I I i /56 i I I SECTION 15 EXHIBIT A I SHEET 1 OF 4 I Calculation of Cable Company Rentals on Three Party Poles for 1994 (Region 1): A: Common Rate 0.81 /Pole/month (NTC & NLH) I B. Differential Rate 0.17/Pole/month (NLH) I NTC OWNED NLH OWNED # Poles* $ Billed # Poles* $ Billed I REGION 1 2,259 at "A" 1,829.79 2,610 at "A" 2,114.10 (LABRADOR) at "B" 443.70 I 2,259 1,829.79 2,610 Sum at "A" 2,114.10 I Sum at "B" 443.70 Per Month Total Billed by NTC: $1,829.79 by NLH: $2,557.80 I * As of December 31,1993 I I I I I I I c /57 I ( SECTION 15 I EXHIBIT A PAGE 2 OF 4 I BILLING 1994 ' DISTRIBUTION OF MONTHLY PAYMENTS MADE BY CATV COMPANIES I FOR ATTACHMENTS TO THREE PARTY POLES* IN REGION 1 I COMMON RATE SHARE 1. Amount billed to CATV Co.'s by NLH at Common Rate $2,144.10 I 2. Amount billed to CATV Co.'s by NTC at Common Rate $1.829.79 I 3. Total to be distributed (Line 1 + Line 2) $3,943.89 4. NTC share (62.5% of Line 3) $2,464.93 H DIFFERENTIAL RATE SHARE I 5. Amount billed to CATV Co.'s by NLH at Differential Rate $443.70 I 6. NTC share (37.5% of Line 5) $166.39 7. Total NTC Share (Line 4 + Line 6) $2,631.32 I 8. Less amount billed by NTC (Line 2) $1.829.79 I 9. Total Due NTC ' $801.53 10. Multiply by 12 months (1 Year) $9,618.36 I "Three party Poles shall mean Poles that have attachments of Newfoundland Hydro (NLH), Newfoundland Telephone (NTC), and a Cable Television Company (CATV Co.) I NOTE: Negative amount means net amount due to Newfoundland Hydro (NLH). I I /58 I I SECTION 15 EXHIBIT A I PAGE 3 OF 4 I Calculation of Cable Company Rentals on Three Party Poles for 1994 (Region 2): A: Common Rate 0.51 /Pole/month (NTC & NLH) I B: Differential Rate 0.47 /Pole/month (NLH) I NTC OWNED NLH OWNED I # Poles* $ Billed # Poles* $ Billed REGION 2 222 at "A" 113.22 11,988 at "A"A" 6,113.88 I (Island Only) at uryn"B 5,634.36 222 $133.22 11,988 Sum at "A" 6,113.88 I Sum at "B" 5,634.36 I Per Month Total Billed by NTC: $113.22 Total Billed By NLH: $11,748.24 I As of December 31,1993 I I I I I /59 I SECTION 15 EXHIBIT A I PAGE 4 OF 4 I BILLING 1994 I DISTRIBUTION OF MONTHLY PAYMENTS MADE BY CATV COMPANIES I FOR ATTACHMENTS TO THREE PARTY POLES* IN REGION 2 ^ COMMON RATE SHARE 1. Amount billed to CATV Co.'s by NLH at Common Rate $6,113.88 I 2. Amount billed to CATV Co.'s by NTC at Common Rate $113.22 £ 3. Total to be distributed (Line 1 + Line 2) $6,227.10 " 4. NTC share (62.5% of Line 3) $3,891.94 •^ DIFFERENTIAL RATE SHARE ™ 5. Amount billed to CATV Co.'s by NLH at Differential Rate $5,634.36 I 6. NTC share (37.5% of Line 5) $2,112.89 7. Total NTC Share (Line 4 + Line 6) $6,004.83 • 8. Less amount billed by NTC (Line 2) $113.22 • 9. Total Due NTC $5,891.61 Multiply by 12 months (1 Year) $70,699.32 * Three party Poles shall mean Poles that have attachments of Newfoundland Hydro (NLH), Newfoundland Telephone (NTC), and a Cable Television Company (CATV Co). I NOTE: Negative amount means net amount due to Newfoundland Hydro (NLH). /60 I I I SECTION 16 - JOINT USE REQUEST FORM I 16.01 General • The purpose of this Section 16 is to provide a completed exhibit of the Joint Use Request form. I | 16.02 Joint Use Request I The form attached as Exhibit A shall be used by the Owner/Tenant to: p (a) Request the placement or Replacement of Joint Use Pole Units; I • (b) Obtain permission from the Owner to establish the Joint Use of Pole Units; [ ^ (c) Notify the Owner of a cancellation of Joint Use Pole Units; I (d) Request that the other Party Transfer its Attachments from existing jointly I used Pole Units to Replacement Pole Units; I (e) Update or correct the Joint Use Pole File to reflect any modification in Joint Use Pole Units in the field; or I (f) Request that the Owner perform miscellaneous work on the Joint Use Pole I Units. I I | /61 I I SECTION 17 - PRICE SCHEDULES I 17.01 Sacrificed and Structural Value Price Schedules I The Sacrificed Value and Structural Value schedules are included in these Administrative Practices to provide a pricing mechanism for Poles prematurely I displaced or for the sale of Poles in place. The schedules are not intended to provide a basis for determining the sale of Poles designed to achieve the balance of I Pole ownership as stated in the Agreement. I (a) Sacrificed Value of Poles (Exhibit A) This schedule covers the cost to be recovered by the Owner for Poles I prematurely displaced to meet the requirements of the Tenant .The Owner is to remove and retain ownership of the displaced Pole. The Owner will not bill the I Tenant for the Sacrificed Value of Poles Replaced to meet the requirements of the Owner. • (b) Structural Value of Poles and Anchors (Exhibit B) This schedule covers the sale price of Poles and Anchors sold in place. Pole I identification shall be changed at the time of such sale. I 17.02 Price Schedule Update I The Sacrificed Value and Structural Value of Poles for the period January 1, 1996 I to March 31, 1996, as shown in Exhibits A and B of this Section 17 are hereby approved. These values shall be reviewed by the Joint Use Committee once a I year and adjustments shall be made as required. The forms attached as Sheet 1 of Exhibits A and B of this Section 17 shall be used for approval of Sacrificed Value I and Structural Value of Poles as required. I /62 I I I SECTION 17 - PRICE SCHEDULES I 17.03 Schedule of Transfer Cost Factors The schedule of Transfer cost factors (Exhibit C) is included in these I Administrative Practices to provide the cost factors for calculating Transfer cost I for Replacement of Pole Units. I i 17.04 Emergency Pole Replacement Listed below are the cost assumptions to be used when one Party replaces Poles i for the other Party on an emergency basis. Associated cost factors will be exchanged annually or as required through the Joint Use Committee. A sample I calculation is contained in Exhibit D. i (a) Materials Poles, anchors, cribs and grounding system will be based on actual stores I inventory price. The inventory price is the average of each inventory material i item. i (b) Materials Handling Fee A material handling fee will be added to materials to cover the cost of such items as transportation, stores expense, and the cost of carrying Poles in inventory. I (c) Labor Charges i Labor charges will be based on actual hours worked multiplied by hourly rate I multiplied by fringe benefits plus overheads. i /63 I 1 SECTION 17 - PRICE SCHEDULES I (d) Charges For Equipment of a Party I Rates charged for the use of equipment owned by a Party will be those developed by that Party for internal use and charges will be prorated based on time the I equipment was used in undertaking work for the other Party. • (e) Transportation Transportation to and from the job site including wages paid during travel will be P split on a 50/50 basis. I (f) Other Expenses Charges for hotel, costs per diem, equipment rental ,etc, will be prorated on the I basis of actual labor cost incurred working on repairing the damage of the Parties. t (g) Administrative Overhead A 5% fee will be added to the accumulated cost for items a, b, c, d, e, and f I above. I I 17.05 Annual Pole Storage Fee I An annual Pole storage fee will be invoiced by Hydro to Newfoundland Telephone on January 1, 1996 and each year thereafter. The annual fee shall be $6,000 for 1996 I and each year thereafter until changed by agreement of the Joint Use Committee. Either Party may review the fee and bring the issue before the Joint Use Committee. I A list of the communities in which Hydro will store Poles for Newfoundland I Telephone is contained in Exhibit E. ( /64 I I I \ SECTION 17 - PRICE SCHEDULES I 17.06 Pole Topping and Attachment Transfers I A Pole topping and/or Attachment Transfer fee of $60.00/Pole will be paid by I Newfoundland Telephone to Hydro for each request for Pole topping and/or Attachment Transfer received prior to the start of work. All requests for Pole topping I and/or Attachment Transfer requiring a special trip on the part of Hydro will be billed based on actual cost. The fee shall be $60.00/Pole until changed by agreement of I the Joint Use Committee. Either Party may review the fee and bring the issue before the Joint Use Committee. I i i I i I i I (. /65 \ I SECTION 17 EXHIBIT A SHEET 1 OF 2 SACRIFICED VALUE OF POLES The Sacrificed Value of Poles for the period January 1, 1996, to March 31, 1996, as described in the Administrative Practices SECTION 17 EXHIBIT A attached and dated 1995 are hereby approved. NEWFOUNDLANS-TEtEPHONE NEWFOUNDLAND AND LABRADOR COMPANY LIMITED HYDRO DATE: DATE: 3,1 /66 I SECTION 17 J EXHIBIT A NTC / NLH I SACRIFICED VALUE OF POLES - 1995 Age % Condition <=30 FT 35 FT 40 FT >=45 FT Anchor 1 98.15% 600.73 690.37 719.63 756.21 244.18 I 2 94.48% 585.76 673.59 705.55 741.64 235.96 3 90.83% 570.30 656.20 690.56 726.10 227.73 4 87.22% 554.45 638.32 674.77 709.69 219.51 I 5 83.65% 538.21 619.97 658.20 692.44 211.31 6 80.12% 521.62 601.17 640.88 674.40 203.15 7 76.64% 504.73 582.01 622.92 655.66 195.03 I 8 73.20% 487.52 562.44 604.27 636.18 186.94 9 69.83% 470.16 542.67 585.16 616.20 178.96 10 66.50% 452.53 522.56 565.45 595.57 171.01 11 63.25% 434.86 502.38 545.42 574.59 163.20 I 12 60.06% 417.07 482.03 525.00 553.18 155.47 13 56.94% 399.25 461.61 504.30 531.47 147.87 14 53.89% 381.42 441.17 483.37 509.50 140.38 I 15 50.93% 363.73 420.86 462.40 487.47 133.07 16 48.06% 346.21 400.74 441.44 465.46 125.94 17 45.26% 328.78 380.69 420.41 443.35 118.93 18 42.55% 311.59 360.90 399.51 421.36 112.12 19 39.92% 294.60 341.33 378.70 399.47 105.47 20 37.40% 278.04 322.23 358.28 377.98 99.06 I 21 34.96% 261.75 303.43 338.06 356.69 92.82 22 32.64% 246.02 285.27 318.43 336.01 86.86 23 30.43% 230.81 267.70 299.36 315.92 81.16 I 24 28.29% 215.89 250.45 280.55 296.10 75.61 25 26.27% 201.62 233.95 262.48 277.05 70.35 26 24.35% 187.90 218.07 245.02 258.65 65.33 27 22.56% 174.96 203.09 228.51 241.23 60.64 I 28 ' 20.84% 162.39 188.54 212.41 224.26 56.11 29 19.24% 150.59 174.87 197.24 208.26 51.88 30 17.74% 139.43 161.93 182.85 193.07 47.91 I 31 16.32% 128.77 149.57 169.07 178.54 44.14 32 15.00% 118.78 137.99 156.13 164.88 40.62 33 13.77% 109.41 127.11 143.95 152.03 37.33 I 34 12.60% 100.43 116.70 132.27 139.69 34.20 35 11.54% 92.25 107.20 121.59 128.42 31.35 36 10.51% 84.25 97.91 111.14 117.39 28.58 I 37 9.56% 76.83 89.30 101.43 107.14 26.03 38 8.67% 69.84 81.19 92.27 97.47 23.62 39 7.81% 63.06 73.31 83.37 88.07 21.30 I 40 6.99% 56.56 65.76 74.83 79.05 19.08 i /67 i I \ SECTION 17 I EXHIBIT B I SHEET 1 OF 2 I I STRUCTURAL VALUE OF POLES I The Structural Value of Poles for the period January 1, 1996, to March 31, 1996, as described in the Administrative Practices SECTION 17 EXHIBIT B attached and dated I 1995 are hereby approved. I I NEWFOUNDLAND NEWFOUNDLAND AND LABRADOR I COMPANY LIMITED HYDRO I I DATE: DATE: I I I 1 /68 I I I I SECTION 17 EXHIBIT B NTC / NLH I STRUCTURAL VALUE OF POLES - 1995 Age % Condition <=30 FT 35 FT 40 FT >=45 FT Anchor 1 98.15% 718.06 846.89 980.63 1038.39 269.68 I 2 94.48% 687.81 811.69 940.39 995.87 259.59 3 90.83% 657.72 776.69 900.37 953.59 249.56 4 87.22% 627.96 742.07 860.80 911.76 239.65 5 83.65% 598.54 707.84 821.66 870.41 229.84 I 6 80.12% 569.44 673.98 782.96 829.51 220.14 7 76.64% 540.75 640.61 744.80 789.20 210.58 8 73.20% 512.39 607.62 707.09 749.34 201.12 I 9 69.83% 484.62 575.31 670.14 710.30 191.86 10 66.50% 457.17 543,37 633.63 671.73 182.72 11 63.25% 430.38 512.20 598.00 634.07 173.79 I 12 60.06% 404.08 481.61 563.03 597.12 165.02 13 56.94% 378.36 451.69 528.82 560.97 156.45 14 53.89% 353.22 422.44 495.38 525.64 148.07 I 15 50.93% 328.82 394.06 462.93 491.35 139.94 16 48.06% 305.16 366.54 431.47 458.10 132.05 17 45.26% 282.08 339.68 400.77 425.66 124.36 18 42.55% 259.74 313.70 371.06 394.27 116.91 I 19 39.92% 238.06 288.47 342.22 363.80 109.68 20 37.40% 217.29 264.31 314.59 334.61 102.76 21 34.96% 197.18 240.91 287.84 306.34 96.06 I 22 32.64% 178.05 218.66 262.41 279.46 89.68 23 30.43% 159.84 197.47 238.18 253.86 83.61 24 28.29% 142.20 176.95 214.72 229.07 77.73 I 25 26.27% 125.55 157.57 192.57 205.67 72.18 26 24.35% 109.72 139.16 171.52 183.42 66.90 27 22.56% 94.96 122.00 151.90 162.69 61.99 I 28 20.84% 80.79 105.50 133.04 142.76 57.26 29 19.24% 67.60 90.16 115.50 124.22 52.86 30 17.74% 55.23 75.77 99.05 106.85 48.74 31 16.32% 43.53 62.16 83.48 90.40 44.84 I 32 15.00% 32.65 49.50 69.01 75.10 41.21 33 13.77% 22.51 37.70 55.53 60.85 37.83 34 12.60% 12.86 26.48 42.70 47.30 34.62 I 35 11.54% 4.13 16.32 31.08 35.02 31.71 36 10.51% -4.37 6.44 19.79 23.09 28.88 37 9.56% -12.20 -2.67 9.37 12.08 26.27 I 38 8.67% -19.53 -11.21 -0.39 1.77 23.82 39 7.81% -26.62 -19.45 -9.82 -8.19 21.46 40 6.99% -33.38 -27.32 -18.81 -17.69 19.21 I /69 I SECTION 17 j EXHIBIT C TRANSFER COST FACTORS I POLE FACTOR POLE FACTOR AGE AGE 0 1.00 31 0.39 I 1 0.99 32 0.37 2 0.97 33 0.35 I 3 0.96 34 0.33 4 0.94 35 0.30 5 0.92 36 0.28 I 6 0.90 37 0.26 7 0.88 38 0.24 8 0.87 39 0.22 I 9 0.85 40 0.21 10 0.83 41 0.19 11 0.81 42 0.17 I 12 0.79 43 0.16 13 0.77 44 0.14 14 0.76 45 0.13 I 15 0.74 46 0.12 16 0.72 47 0.10 I 17 0.70 48 0.09 18 0.68 49 0.08 19 0.66 50 0.07 I 20 0.64 51 0.07 21 0.62 52 0.06 22 0.60 53 0.05 I 23 0.57 54 0.05 24 0.55 55 0.04 25 0.53 56 0.03 I 26 0.51 57 0.03 27 0.49 58 0.03 28 0.46 59 0.02 I 29 0.44 60 0.02 I 30 0.42 I /70 I SECTION 17 EXHIBIT D I EMERGENCY POLE REPLACEMENT NTC Costs I (a) Materials 1 - 45' Pole 358.00 2 - Down Guys 62.00 I 2 - Earth Anchors 58.00 478.00 478 .00 (b) Material Handling Fee • Material Costs 478.00 X 30% 143.40 (c) Labor Charges • Linesman A = 18.05/hr + 31.6% fringe benefits W + 14.7 % overheads = 26.41/hr. • Laborer + 11.99/hr + 31.6% + 14.7% = 17.54/hr. I m Linesman A Costs = 53 hrs. x 26.41/hr. = 1,399.73 - Laborer Costs = 4 hrs. x 17.54/hr. 70.16 Total Labor 1.469.89 | Pole Installation 22 hrs. x 26.41/hr. = 581.02 1 3 hrs. x 17.54/hr. = 52.62 633.64 633.64 Framing 1 11 hrs. x 26.41/hr. = 290.51 1 hr. x 17.54/hr. = 17.54 308.05 I Travel • 20 hrs. x 26.41/hr. = 528.20 50% travel 264.10 * Total Labor 1,469.89 I i /71 i d) Equipment Charges Equipment rental to dig and install anchors 360.00 Equipment rental to erect Pole 225.00 I Hydro owned equipment 175.00 Total Equipment Costs 760.00 (e) Transportation m Total travel 284.62 - NTC share = 50% 142.31 (f) Other Expenses I Total board and lodgings = 348.00 NTC share = 348.00 x 633.621,469.8+ 264.19 0 212.54 Sub-total 2,633.99 I Administrative fee (5%) 131.70 I Total Cost 2.765.69 t I I I I I I I i /72 I I I SECTION 17 I EXHIBIT E I COMMUNITIES IN WHICH HYDRO WILL STORE POLES I Nain Grey River I Davis Inlet McCallum Hopedale Francois I Postville Rencontre East I Makkovik South East Bight Rigolet St. Brendan's I Paradise River Change Islands Black Tickle Fogo I Cartwright William's Harbour Harbour Deep Charlottetown I Petites St. Lewis Lapoile Norman Bay I Grand Bruit Mary's Harbour I Ramea Port Hope Simpson I I I \ /73 \ I • SECTION 18 - JOINT USE BURIED CONSTRUCTION f§ 18.01 Policy . Planning and Co-ordination •> In any area where it is mutually desirable to undertake Joint Use buried _ construction, suitable cost sharing and other arrangements shall be agreed • upon by representatives of the Parties. The Parties shall co-ordinate early in m the planning stage of Joint Use buried construction. I I I t. I I I I I I I /74 I I SECTION 19 - CONSTRUCTION PRACTICES I 19.01 General CSA Standards I The objective of this Section 19 is to provide guidelines and requirements for the construction of Joint Use Pole Units. These practices shall meet, as a I minimum, the requirements for Joint Use construction of overhead and underground electrical supply and communications circuits as specified in I CSA Standard CAN3 - C22.3 No. 1 and No. 1.1. I Unforeseen conditions or circumstances not covered in this Section 19 shall I be resolved in a cooperative manner to the mutual benefits of the Parties. Modifications and/or amendments to these practices shall be the I responsibility of the Joint Use Committee as outlined in SECTION 2 - JOINT r USE COMMITTEE. i 19.02 Vertical Design Clearances and Separations i Vertical clearances and separations for Joint Use Pole Units shall be in i accordance with CSA Standard CAN3-C22.3 No. 1 - M85, Clause 4*. i These guidelines shall provide adequate clearances for power conductors, between power and communication conductors in the span, between i communication cables and the ground, and adequate safe working space. Power and communication spacing for typical Joint Use Pole Units is i. outlined on DWG 19.1. These sketches represent typical space allotments i /75 I I SECTION 19 - CONSTRUCTION PRACTICES only and are not intended to reflect either the minimum or maximum space I allotments of either Party. I *I\IOTE: Vertical design clearances above ground may be prescribed by I provincial or municipal legislation or regulation. In such a case, each Party's clearances must comply with the greater of that I prescribed by CSA Standard CAN3-C22.3 No.1 - M85, Clause 4 and the federal, provincial or municipal legislation or I regulation applicable to that Party. I In the case of new construction, which does not include the replacement of existing Poles, the Parties shall comply with the I greater of the standard, legislation or regulation applicable to t either Party. Secondary space should be provided and reserved on Joint Use Poles in developed I areas and in areas where future development is expected. I Vertical design clearances above ground and separations on Joint Use Poles must I provide for and reserve space for attachment of communication cables at both the top and the bottom of the communication space. I I I I i /76 I 9150 mm <30O PDLE 9150 nn C30O PDLE 10 670 nm C35') PDLE 150 mm POWER £ E POWER POWER £ ATTACHMENT in SPACE SPACE £ in o 1800m m vD CDMM. £ NEUTRAL SlOmm £ ATTACHMENT Z SPACE NEUTRAL 100 C SPACE 1000 m £ £ (=1 £ CDMM. £ CDMM. GROUND SPACE SPACE RE Q CLEARANCE GRDUND GRDUND REQ' D REQ' D CLEARANCE < CLEARANCE SINGLE DR THREE SERVICE DROP STRUCTURE SECONDARY STRUCTURE PHASE STRUCTURE 12 200 mn <40O PDLE 13 700 nn <45') PDLE £ E r POWER PDWER o£ SPACE o SPACE o 300 0 £ £ NEUTRAL SlOmn £ SlOmm £ o NEUTRAL SPACE o SPACE loo t £ £ £ CDMM. £ CDMM. SPACE SPACE GRDUND GRDUND :Q' D REQ' D CLEARANCE CLEARANCE TRANSFDRMER & TAP THREE PHASE VERTICAL DFF STRUCTURE STRUCTURE NDTES * 1, AS REQUIRED - TD MEET MINIMUM CSA STANDARD DR LEGISLATIVE AUTHORITY (EG. DEPT, DF TRANSPDRTATIDN) ** 2. MINIMUM EISTSANCE FDR COMMUNICATION DROP FRDM POWER SPACE. ALLOTMENT DE PDLE SPACE EDR JDINT USE PDLES DWG. 19-1 I I SECTION 19 - CONSTRUCTION PRACTICES 19.03 Climbing Space Requirements - Joint Use Poles I Climbing space requirements for Joint Use Poles, in accordance with CSA CAN 3 - C22.3 No. 1 -3.1.4 shall not be less than 30 inches (750 mm) X 30 I inches (750 mm) past any conductor, cable, crossarm, or other Attachments of the Party using any lower part of the Pole, and shall extend I at least 40 inches (1000mm) above and 40 inches (1000m) below the I limiting Attachment. Communication main line cables and power secondary conductor shall, I where practicable, be located on the same side of the Pole, preferably on I the street side to allow one side free from obstructions for climbing. I Where it is necessary to have communication risers and power risers on the same Joint Use Pole, they shall be arranged as indicated on DWG 19-2 so I as not to obstruct climbing or guying space. Communication drop wires shall preferably be distributed from the sides of Poles, as indicated on DWG I 19-2, to ensure the 30" (750 mm) space through them. I I I I /78 30" (750mm) I ' CLIMBING SPACE ' POWER SECONDARY CABLE STRAND STREET LIGHT o COMMUNICATION DROP WIRES DISTRIBUTED FROM CABLE STRAND •COMMUNICATION CABLE 30" (750mm) r FOR GUYED STRUCTURES ' CLIMBING SPACE ' LOCATE SECONDARY & COMMUNICATION CABLE ON SIDE OF STRUCTURE OPPOSITE GUY. COMMUNICATION DROP WIRES DISTRIBUTED FROM POLE STREET SIDE POWER CABLE ARRANGEMENT OF ATTACHMENTS MAIN LINE POLE COMMUNICATION CABLE ARRANGEMENT OF RISERS TERMINATION POLE CLIMBING SPACE REQUIREMENTS JOINT USE POLES DWG. 19-2 I R SECTION 19 - CONSTRUCTION PRACTICES I 19.04 Anchors Joint Use Anchors and guy leads shall be selected such that the I minimum safety factor for the Anchor, Anchor rod, and guys common m to both Parties will not be less than the minimum of 1.6, as specified by CSA Standard CAN3 - C22.3 No. 1 - M85, Clause 6. I I Anchors are to be installed as per the installation details shown on DWGs 19-3 to 19-6. I I I I I I I /80 I WIDTH OF TRENCH TO BE KEPT TO I A MINIMUM I I I I I I I I EARTH ANCHOR - LOG (E.L.) EARTH ANCHOR - PLATE (E.P.) I NOTES: 1. CUT SLOT FOR ANCHOR ROD SO THAT THE GUY WIRE TO THE POLE & THE ANCHOR ARE IN THE SAME DIRECTION. 2. ASSEMBLE ANCHOR TO ROD & LOWER INTO POSITION. 3. BACKFILL HOLE & SLOT & TAMP FIRMLY. 4. 3/4" DIAMETER DOUBLE EYE ROD AND 1200mm (4FT.) LOG OR 16"x16" PLATE TO BE USED FOR THE ATTACHMENT I OF ONE OR TWO GUYS, AND A 1" DIAMETER TRIPLE EYE ROD AND 1525mm (5FT.) LOG OR 20"x20" PLATE FOR THE ATTACHMENT OF THREE GUYS. I I i STANDARD i EARTH ANCHOR DETAILS DWG. 19-3 I I I I I I BOG ANCHOR - LOG fBL) BOG ANCHOR - PLATE I APPROX. I I HOLE DIAMETER 285mm SEE NOTE 2 ROCK ANCHOR - WITH EXTENSION ROCK ANCHOR (R) NOTES: BOG: 1. FOR INSTALLATION OF BOG ANCHOR, EXCAVATE HOLE 1500x1500x1500mm DEEP I & BACKFILL HOLE WITH ROCK & ENOUGH GRAVEL OR STONE TO FILL THE VOIDS. 1. THE ANGLE WHICH THE ROCK ANCHOR MAKES THE HORIZONTAL OR SURFACE OF THE ROCK SHOULD NOT BE LESS THAN 60\ 2. AFTER WEDGE HAS BEEN DRIVEN INTO THE ROCK ANCHOR, THE ANCHOR SHOULD BE GROUTED IN WITH A MIXTURE OF SAND & CEMENT (3-1). 3. THE ROCK ANCHOR EYE OR THE EXRENSION MUST NOT BE COVERED BY TOP SOIL OR GRAVEL. 4. THE ROCK ANCHOR EYE MUST NOT EXTEND ABOVE THE SURFACE OF ROCK MORE THAN 100mm. 5. REFER TO NOTE 4 ON PAGE 19-8. STANDARD BOG AND ROCK ANCHOR DETAILS DWG. 19-4 I I I I I I I I i EARTH ANCHOR - LOG (E.L.I EARTH ANCHOR - PLATE (E.P.1 i NOTES: 1. ASSEMBLE ANCHOR TO ROD & LOWER INTO POSITION. 2. BACKFILL HOLE & TAMP FIRMLY. I 3. SIDEWALK GUY IS A SINGLE GUY DESIGN ONLY. I i i i STANDARD EARTH ANCHOR i DETAILS FOR SIDEWALK GUY i DWG. 19-5 I ANGLE OF KELLY BAR ADAPTOR I PROPOSED GUY LOCKING DOG ASSEMBLY 0 0 I %mc EXTENSION ASSEMBLY I I I DRIVE END ASSEMBLY I SCREW ANCHOR NOTES: 1. ASSEMBLE HELIX AND ANCHOR ROD (WITHOUT EYENUT) AND THREAD THROUGH WRENCH ASSEMBLY. ENSURE THAT THE LOCKING DOGS OF WRENCH ARE COMPLETELY CLOSED ENGAGING THE ANCHOR ROD COLLAR. WRENCH ASSEMBLY DETAILS 2. ALINE ANCHOR WITH THE PROPOSED GUY AND, USING A DOWNWARD PRESSURE WITH THE BOOM, SCREW ANCHOR IT'S REQUIRED DEPTH TO THE RATED TORQUE OF THE DIGGER MOTOR. 3. AFTER INSTALLATION PULL LOCKING DOGS OF WRENCH ONE-HALF WAY OUT TO ANGLE OF RELEASE THE ANCHOR ROD COLLAR AND, USING BOOM, WITHDRAW DRIVE END PROPOSED GUY ASSEMBLY OF WRENCH. 4. A SCREW ANCHOR MUST HAVE A MINIMUM COVER OF 1500mm OF SOIL TO ENSURE THAT IT IS BELOW THE FROST LINE, AND MUST PENETRATE THROUGH I 915mm OF FIRM SOIL TO ENSURE MAXIMUM HOLDING STRENGTH. 5. IF, DUE TO POOR SOIL CONDITIONS, MAXIMUM HOLDING STRENGTH CANNOT BE ACHIEVED WITH THE ANCHOR AND 7'-0" ROD, A S-6" ROD EXTENSION MAY BE COUPLED TO PENETRATE DEEPER INTO FIRMER SOILS. TO ACHIEVE THIS A WRENCH I EXTENSION MUST BE COUPLED WrTH THE KELLY BAR AND WRENCH. 6. AN ANCHOR WHICH CAN BE ROTATED AT MAXIMUM PENETRATION IS NOT IN FIRM SOIL AND SHOULD BE WITHDRAWN. AN EARTH, ROCK OR BOG ANCHOR MUST BE USED IN I THIS CASE. I I SCREW ANCHOR WITH I ROD EXTENSION DETAILS I POWER INSTALLED SCREW ANCHOR (PISA) i DETAILS DWG. 19-6 I I SECTION 19 - CONSTRUCTION PRACTICES I 19.05 Guying Arrangement and Anchor Location I The guying arrangements and Anchor locations for Joint Use standard I Poles are shown on DWGs 19-7 to 19-20. The guy lead is the horizontal distance from the Pole to the point where I the rod enters the ground, and the guy height is the vertical distance I from the Anchor ground line to the guy attachment on the Pole. The Anchor location should be chosen such that the ratio of the guy lead I (L) to the guy height (H), i.e., L/H, is not less than 0.8; however, a guy I angle of 45° is to be used at all times wherever possible. In the case where two Anchors are required, the guy lead refers to the outside Anchor; the inside Anchor shall be placed a minimum of 2 meters in from the outside Anchor. I I I I I I I I /85 I I I I I I I t I 'A' TYPE STRUCTURE 'B' TYPE STRUCTURE STR. CONDUCTOR LINE STR. CONDUCTOR LINE TYPE SIZE ANGLE TYPE SIZE ANGLE I - - 1A NO. 2 TO 2/0 0 -5" 1B NO. 2 TO 2/0 5"-25 3A 4/0 TO 477 O'-3' 3B 4/0 TO 477 3"-20* I 1AL NO. 2 TO 2/0 CT-1CT 1BL NO. 2 TO 2/0 1 0'-20- 3AL 4/0 TO 477 0"-6' 3BL 4/0 TO 477 NOTES: I 1 1 1. FOR ALL 'A AND "B STRUCTURES THE DOWNGUY BISECTS THE ANGLE BETWEEN OVERHEAD CONDUCTORS. 2. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H). ie. L/H MUST NOT BE LESS THAN 0.8 HOWEVER, GUY ANGLE OF 45\ ie. L/H=1, TO BE USED WHEREVER POSSIBLE. 3. ALL GUYS SHOWN ARE PRIMARY GUYS, UNLESS THEY ARE IDENTIFIED WITH ONE OF THE I FOLLOWING SYMBOLS; S - SECONDARY GUY, C - COMMUNICATION GUY. I 4. REFER TO NOTE 4 ON PAGE 19-8 FOR TYPE AND SIZE OF ANCHOR AND ANCHOR ROD. I STANDARD ANCHOR i ARRANGEMENT I DWG. 19-7 I I i i i NOTE: ANCHOR ATTACHMENT LOCATION I FOR COMMUNICATION GUY IF SECONDARY GUY NOT REQ'D. I (SEE NOTE 4) i I r i •C TYPE STRUCTURE 'C TYPE STRUCTURE STR. CONDUCTOR LINE GUY STR. CONDUCTOR LINE GUY TYPE SIZE ANGLE LOCATION TYPE SIZE ANGLE LOCATION i 1CX, 4/0 TO 477 36' -6a 1,2 NO. 2 TO 2/0 25--60' 1 1CLX 1C 4/0 TO 477 20"-35" 1 3CX, 4/0 TO 477 36--60" 1,3,4 3CLX NO. 2 TO 2/0 20--60- 1 1CL i 4/0 TO 477 15"-35' 1 NO. 2 TO 2/0 25'-60" 1,2 NOTES: 3C 4/0 TO 477 20--35" 1,2 1 1. FOR ALL 'C STRUCTURES THE DOWNGUY BISECTS THE ANGLE - I BETWEEN OVERHEAD CONDUCTORS. NO. 2 TO 2/0 20 -60* 1.2 3CL 2. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST 4/0 TO 477 15" -35' 1,2 NOT BE LESS THAN 0.8. HOWEVER, GUY ANGLE OF 45", ie. L/H-1, TO BE USED WHEREVER POSSIBLE. 3. ALL GUYS SHOWN ARE PRIMARY GUYS, UNLESS THEY ARE IDENTIFIED t WITH ONE OF THE FOLLOWING SYMBOLS; S - SECONDARY GUY, C - COMMUNICATION GUY. 4. REFER TO NOTE 4 ON PAGE 19-8 FOR TYPE AND SIZE OF ANCHOR i AND ANCHOR ROD. STANDARD ANCHOR i ARRANGEMENT DWG. 19-8 I I I I I I I I I I 'D' TYPE STRUCTURE 'D' TYPE STRUCTURE (FRONT VIEW) (SIDE VIEW) I NOTES: 1. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST NOT BE LESS THAN 0.8 HOWEVER, GUY ANGLE OF 45", ie. L/H = 1, TO BE USED WHEREVER POSSIBLE. 2. ALL GUYS SHOWN ARE PRIMARY GUYS, UNLESS THEY ARE IDENTIFIED WITH ONE OF THE I FOLLOWING SYMBOLS; S - SECONDARY GUY, C - COMMUNICATION GUY. 3. REFER TO NOTE 4 ON PAGE 19-8 FOR TYPE AND SIZE OF ANCHOR AND ANCHOR ROD. 1 I STANDARD ANCHOR ARRANGEMENT i DWG. 19-9 I i I I I i NOTE: ANCHOR ATTACHMENT LOCATION FOR COMMUNICATION GUY IF SECONDARY GUY NOT REQ'D. I (SEE NOTE 3) i i i 'E' TYPE STRUCTURE 'E' TYPE STRUCTURE STR. CONDUCTOR LINE GUY STR. CONDUCTOR LINE GUY TYPE SIZE ANGLE LOCATION TYPE SIZE ANGLE LOCATION 1EX, 4/0 TO 477 60--90' 1,2 1E, NO. 2 TO 2/0 60" -90" 1 i 1ELX 1EL 3EX, 4/0 TO 477 60--90- 1,3,4 3E, NO. 2 TO 2/0 1,2 3ELX 3EL 60*-90" NOTES: 1. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST NOT BE LESS THAN 0.8. HOWEVER, GUY ANGLE OF 45', ie. L/H=1, TO BE USED WHEREVER POSSIBLE. 2. ALL GUYS SHOWN ARE PRIMARY GUYS, UNLESS THEY ARE IDENTIFIED WITH ONE OF THE FOLLOWING SYMBOLS; S - SECONDARY GUY, C - COMMUNICATION GUY. i 3. REFER TO NOTE 4 ON PAGE 19-8 FOR TYPE AND SIZE OF ANCHOR AND ANCHOR ROD. STANDARD ANCHOR i ARRANGEMENT i DWG. 19-10 I I i t. •DE' TYPE STRUCTURE 'DE' TYPE STRUCTURE STR. CONDUCTOR GUY STR. CONDUCTOR GUY TYPE SIZE LOCATION TYPE SIZE LOCATION 1DEX 4/0 TO 477 1,3 1DE NO. 2 TO 2/0 1 3DEX 4/0 TO 477 1,2,3 3DE NO. 2 TO 2/0 1,2 NOTES: 1. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST NOT BE LESS THAN 0.8. HOWEVER, GUY ANGLE OF 45\ ie. L/H=1, TO BE USED WHEREVER POSSIBLE. 2. ALL GUYS SHOWN ARE PRIMARY GUYS, UNLESS THEY ARE IDENTIFIED WITH ONE OF THE FOLLOWING SYMBOLS; S - SECONDARY GUY, C - COMMUNICATION GUY. 3. REFER TO NOTE 4 ON PAGE 19-8 FOR TYPE AND SIZE OF ANCHOR AND ANCHOR ROD. STANDARD ANCHOR ARRANGEMENT DWG. 19-11 I I I I I I I I I r i 'DEL' TYPE STRUCTURE 'DEL' TYPE STRUCTURE i STR. CONDUCTOR GUY STR. CONDUCTOR GUY TYPE SIZE LOCATION TYPE SIZE LOCATION 1DELX 4/0 TO 477 1 1DEL NO. 2 TO 2/0 1 i 3DELX 4/0 TO 477 1,2,3 3DEL NO. 2 TO 2/0 1,2 NOTES: 1. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST NOT BE LESS THAN 0.8. HOWEVER, GUY ANGLE OF 45', ie. L/H=1, TO BE USED WHEREVER POSSIBLE. i 2. ALL GUYS SHOWN ARE PRIMARY GUYS, UNLESS THEY ARE IDENTIFIED WITH ONE OF THE FOLLOWING SYMBOLS; S - SECONDARY GUY, C - COMMUNICATION GUY. 3. REFER TO NOTE 4 ON PAGE 19-8 FOR TYPE AND SIZE OF ANCHOR AND ANCHOR ROD. i STANDARD ANCHOR ARRANGEMENT i DWG. 19-12 I I i I I I NOTE: ANCHOR ATTACHMENT LOCATION I FOR COMMUNICATION GUY IF SECONDARY GUY NOT REQ'D. (SEE NOTE 3) I I I I 'DEVL' TYPE STRUCTURE 'DEVL' TYPE STRUCTURE (4/0 TO 477) (NO. 2 TO 2/0) I NOTES: I 1. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST NOT BE LESS THAN 0.8. HOWEVER, GUY ANGLEF 45\ ie. L/H=1, TO BE USED WHEREVER POSSIBLE. 2. ALL GUYS SHOWN ARE PRIMARY GUYS, UNLESS THEY ARE IDENTIFIED WITH ONE OF THE I FOLLOWING SYMBOLS; S - SECONDARY GUY, C - COMMUNICATION GUY. 3. REFER TO NOTE 4- ON PAGE 19-8 FOR TYPE AND SIZE OF ANCHOR AND ANCHOR ROD. I I STANDARD ANCHOR i ARRANGEMENT i DWG. 19-13 I I y -o i 1 •1 •! NOTE: ANCHOR ATTACHMENT LOCATION FOR COMMUNICATION GUY IF SECONDARY GUY NOT REQ'D. (SEE NOTE 3) I I I '3ADC TYPE STRUCTURE '3BDC TYPE STRUCTURE (NO. 2 TO 2/0, 0"-5") (NO. 2 TO 2/0, 5'-25') I (4/0 TO 477, 0--3') (4/0 TO 477, 3"-20') I NOTES: 1. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST NOT BE LESS THAN 0.8 HOWEVER, GUY ANGLE OF 45% ie. L/H=1. TO BE USED WHEREVER POSSIBLE. 2. ALL GUYS SHOWN ARE PRIMARY GUYS, UNLESS THEY ARE IDENTIFIED WITH ONE OF THE I FOLLOWING SYMBOLS; S - SECONDARY GUY, C - COMMUNICATION GUY. 3. REFER TO NOTE 4 ON PAGE 19-8 FOR TYPE AND SIZE OF ANCHOR AND ANCHOR ROD. STANDARD ANCHOR ARRANGEMENT DWG. 19-14 I i '3AR' TYPE STRUCTURE '3BR' TYPE STRUCTURE (NO. 2 TO 2/0, 0--5-) (NO. 2 TO 2/0, 5'-25") (4/0 TO 477, O'-3-) (4/0 TO 477, 3'-20") NOTES 1. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST NOT BE LESS THAN 0.8 HOWEVER, GUY ANGLE OF 45\ ie. L/H=1, TO BE USED WHEREVER POSSIBLE. 2. ALL GUYS SHOWN ARE PRIMARY GUYS, UNLESS THEY ARE IDENTIFIED WITH ONE OF THE FOLLOWING SYMBOLS; S - SECONDARY GUY, C - COMMUNICATION GUY. 3. REFER TO NOTE 4 ON PAGE 19-8 FOR TYPE AND SIZE OF ANCHOR AND ANCHOR ROD. STANDARD ANCHOR ARRANGEMENT DWG. 19-15 I I I I I I I I r I i i '3DS' TYPE STRUCTURE (o'-icr) i NOTES: 1. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST NOT BE LESS THAN 0.8 i HOWEVI i STANDARD ANCHOR i ARRANGEMENT DWG. 19-16 i I I I I I I I I r I i i 'IDS' TYPE STRUCTURE i NOTES: 1. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST NOT BE LESS THAN 0.8. HOWEVER, GUY ANGLE OF 45', ie. L/H-1, TO BE USED WHEREVER POSSIBLE. 2. ALL GUYS SHOWN ARE PRIMARY GUYS, UNLESS THEY ARE IDENTIFIED WITH ONE OF THE FOLLOWING SYMBOLS; S - SECONDARY GUY, C - COMMUNICATION GUY. 3. REFER TO NOTE 4 ON PAGE 19-8 FOR TYPE AND SIZE OF ANCHOR AND ANCHOR ROD. STANDARD ANCHOR ARRANGEMENT DWG. 19-17 I I I I I I I I I I I I •3TVX' TYPE STRUCTURE (4/0 TO 477) I NOTES: 1. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST NOT BE LESS THAN 0.8. HOWEVER, GUY ANGLE OF 45-, ie. L/H=1, TO BE USED WHEREVER POSSIBLE. 2. ALL GUYS SHOWN ARE PRIMARY GUYS, UNLESS THEY ARE IDENTIFIED WITH ONE OF THE I FOLLOWING SYMBOLS; S - SECONDARY GUY, C - COMMUNICATION GUY. 3. REFER TO NOTE 4 ON PAGE 19-8 FOR TYPE AND SIZE OF ANCHOR AND ANCHOR ROD. STANDARD ANCHOR i ARRANGEMENT DWG. 19-18 I I I I I I I I NOTE: ANCHOR ATTACHMENT LOCATION FOR COMMUNICATION GUY IF t SECONDARY GUY NOT REQ'D. (SEE NOTE 3) I I I I '3DF' TYPE STRUCTURE NOTES: 1. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST NOT BE LESS THAN 0.8 I H0WI STANDARD ANCHOR ARRANGEMENT DWG. 19-19 I I i I I I I I I r i i '3AV TYPE STRUCTURE (NO. 2 TO 2/0, O'-5') i (4/0 TO 477, O'-3') NOTES: 1. THE RATIO OF GUY LEAD (L) TO GUY HEIGHT (H), ie. L/H MUST NOT BE LESS THAN 0.8. HOWEVER, GUY ANGLE OF 45', ie. L/H=1, TO BE USED WHEREVER POSSIBLE. 2. ALL GUYS SHOWN ARE PRIMARY GUYS, UNLESS THEY ARE IDENTIFIED WITH ONE OF THE FOLLOWING SYMBOLS; S - SECONDARY GUY, C - COMMUNICATION GUY. 3. REFER TO NOTE 4 ON PAGE 19-7 FOR TYPE AND SIZE OF ANCHOR AND ANCHOR ROD. STANDARD ANCHOR i ARRANGEMENT DWG. 19-20 I I SECTION 19 - CONSTRUCTION PRACTICES | 19.06 Pole Line Design I The physical and treatment properties of Joint Use Poles shall be in I m accordance with the CSA standards as outlined in CSA 22.3, Clause 7. 8 The standard Joint Use Pole shall be a minimum of Class 4. The standard Joint Use Pole shall be a minimum of Class 4. Class 3 or I higher shall be used where larger cables or conductors and/or longer spans m are encountered. fL The class and maximum span length of Poles for standard power I conductors and communication cables shall be determined from the drawings and instructions in this Section. • Drawings 19-22, 19-23, and 19-24 give the standard span lengths for * distribution lines with various types of conductor and sizes of communication cables. These charts should be used when building, • upgrading or reconstructing distribution lines. They are prepared for both • Class 4 and Class 3 Poles. The standard span lengths are limited by the Wind Span and the Maximum Span Length. I i /100 i I 1 SECTION 19 - CONSTRUCTION PRACTICES I • The Wind Span is proportional to the breaking strength of the Pole. CSA states that a Class 4 and Class 3 must withstand a horizontal load of • 2,400 and 3,000 lbs., respectively, applied two feet from the top of the 8 pole, before the pole breaks. The pole should break at the ground line when a greater force than this is applied. I I Based on this, and with an appropriate safety factor, the wind span lengths are m calculated for Pole Lines subjected to both Heavy Wind Loading and Wind and Ice Loading. The lesser result of the two was used to determine the wind span. The I •- wind & ice loading on the Pole was taken into consideration. I A safety factor of 1.33 with winds gusting to 153 km/h was used in calculations for Heavy Wind Loading. A safety factor of 1.66 with heavy loading (38 kg/m2 with I 13mm of radial ice) was used for Wind and Ice Loading. I The Wind Span for any structure is one half the sum of the two adjacent spans, I assuming that the wind force on the conductor is shared evenly between the two I supporting structures. For example, the wind span for a Pole having adjacent span lengths of 73 meters and 91 meters is (73 + 91) •*• 2 = 82 meters. • /101 I I K SECTION 19 - CONSTRUCTION PRACTICES I • All other things being equal, the wind span will be greater for a Class 3 Pole than that for a Class 4. I I The following steps outline in detail the procedure to be followed when using the charts to determine a suitable span length: • (1) Determine the type of line involved (three phase, single phase with • secondary, etc.) and the conductor size to be used for same. • (2) Determine the total diameter of the communication cables involved. DWG 19-21 outlines the cable diameter to be used in the charts for various cable ^.. combinations. £ (3) Determine the class of Pole involved. DWG 19-24 indicates the minimum dimensions for Class 4 and Class 3 Poles. _ (4) With this information, locate the appropriate curve, (A, B, C or D) and • determine the span length corresponding to the cable diameter in question. " (5) If all, or sections of the line are in extremely exposed areas and extra heavy • loading is expected, the span length should be reduced to 80% of the chart values for these areas. I /102 I I SECTION 19 - CONSTRUCTION PRACTICES I For example, assume a three phase line with 477 MCM primary, 4/0 neutral • and a total diameter of communication cables of 127 mm (5"). I From Curve A on Chart 1 and Chart 2 the span length will be 39.6m (130") I for a Class 4 Pole and 50.3m (165') for a Class 3 Pole; this will be the wind span length. When doing an actual layout, an individual span length can exceed this value as long as it does not exceed the maximum span length. I • For the above case where a value of 50.3m (165') was obtained for the wind span, an individual span length could be 61m. However, the span L lengths adjacent to this span would have to be limited to 39.6m (130') in B order not to exceed the wind span for the structure. i.e. (61 + 39.6) •*• 2 = 50.3 (the wind span) (200 + 130) -2 = 165' (the wind span) For neat line construction and consistency in sag, it is recommended that the | span lengths be kept, wherever possible, approximately equal. I I I /103 I I I SECTION 19 - CONSTRUCTION PRACTICES • Summary I (1) The span lengths in the charts are governed by the Wind Span and the • Maximum Span Length. I (2) The wind span does not limit an individual span length, but limits the sum of the two adjacent span lengths. I • (3) The maximum span length limits the individual span length. i m>.... (4) The span lengths in the chart should be decreased in areas where extra B heavy loading is expected. (5) Future additions to the line should be considered before arriving at a I suitable span length. I I I I i /104 i I CABLE CONFIGURATION SUPPORTED CROSSECTIONAL COMMUNICATION CABLE DIAMETER I VIEW FOR USE IN SPAN LENGTH CHARTS ONE CABLE SUPPORTED D = DIAMETER OF COMMUNICATION I BY MESSENGER CABLE PLUS MESSENGER I TWO CABLES SUPPORTED D = DIAMETER OF TWO CABLES I HORIZONTALLY PLUS MESSENGER AS SEEN HORIZONTALLY I TWO CABLES SUPPORTED D = TOTAL DIAMETER OF BUNDLED I VERTICALLY CABLES PLUS MESSENGER I I BUNDLED CABLES D = OVERALL DIAMETER OF BUNDLED CABLES PLUS MESSENGER I I I D = TOTAL OF EACH CABLE DIAMETER TWO OR MORE CABLES EACH PLUS THE DIAMETER OF THE I SUPPORTED BY A MESSENGER MESSENGER SUPPORTING SAME I LEGEND D = D1+D2+ I MESSENGER \ CABLE \ COMMUNICATION CABLE DIAMETERS i TABLE C1 DWG. 19-21 I I I I I I I I I I I I I LO \ CM I TOTAL DIAMETER OF COMMUNICATION CABLE STANDARD SPAN LENGTHS CHART No. 1 DWG. 19-22 I I I I I a. 28 I UJQ I I ilo I 5 I l I I o in o in o in in o in CM o ion CN o in I CN CM CM ,— CN I TOTAL DIAMETER OF COMMUNICATION CABLES (mm) I, STANDARD SPAN LENGTHS i CHART No. 2 \ DWG. 19-23 I I I o Q I | 8 Q. o I in UJ UJlrt OQ I 3tn QUJ E *• I Uj| I CL o I z Kl- OO o I CO co Ld o O Q_ Q_ §1 I T(- ro CO CO 5 00 CO So. I o o Q 2 I m O m o in o m o m o in o in CM o in C-J o m CM o in I tn CM Csl CM ,— CM TOTAL DIAMETER OF COMMUNICATION CABLES (mm) I I STANDARD SPAN LENGTHS CHART No. 3 I DWG. 19-24 I I SECTION 19 - CONSTRUCTION PRACTICES I 19.07 Pole Setting Depth (P.S.D.) I The recommended Pole setting depths (minimum) as shown in the P.S.D. I Table below: I I P.S.D. TABLE I POLE LENGTH EARTH ROCK (FT) (M) (FT) (M) (FT) (M) I 30 9.15 5.0 1.53 4.0 1.22 35 10.67 5.5 1.68 4.5 1.37 I 40 12.19 6.0 1.83 5.0 1.53 45 13.72 6.5 1.98 5.5 1.68 I 50 15.24 7.0 2.13 6.0 1.83 55 16.76 7.5 2.28 6.0 1.83 I 60 18.29 8.0 2.44 6.5 1.98 I 65 19.81 8.5 2.59 7.0 2.13 70 21.33 9.0 2.74 7.5 2.28 I The standard Pole setting details are shown on DWG 19-25. Installation I details for Pole on rock (tri-Anchor) are shown on DWG 19-26 and a I standard crib arrangement is shown on DWG 19-27. I /109 I I I I I I I I I -SEE NOTE 2- I I -SEE NOTE 3- I I - SEE NOTE 1 • I I LEVEL TERRAIN SIDE HILL TERRAIN I NOTES: 1. POLE SHALL HAVE A FOOTING OF 230mm OF ROCK. 2. POLE SHALL HAVE A COLLAR OF 230mm OF ROCK. 3. EARTH FILL SHALL BE PLACED IN 230mm LAYERS AND THOROUGHLY TAMPED. I 4. EXCESS FILL SHALL BE MOUNDED AROUND HOLE. 5. FOR HOLES HAVING 75% OR LESS ROCK, THE SETTING FOR EARTH SHALL BE USED. I 6. HOLES DUG BY BACKHOE SHALL ALWAYS BE DUG WITH THE LINE. I STANDARD i POLE SETTING DETAILS DWG. 19-25 I SEE NOTE 11 FIRST HOLE 123AJ OR 123 WOOD POLE I OF POLES DRILLING TEMPLATE APPLICATION I POLE MOUNT ORIENTATION PLAN LAG BOLT > SUPPLIED WITH MOUNT I STUD REFER TO ROCK DRILL DIAMETER I IN TABLE BELOW WASHER SUPPLIED I WOOD POLE WITH MOUNT BUTT OF POLE I ANCHOR BOLT REFER TO ROCK I DRILL DIAMETER ANTI-ROTATION LUG IN TABLE BELOW SEE EXPANSION SHELL DETAIL r ISOLATION JOINT EXPANSION SHELL DETAIL ROCK MOUNT ASSEMBLY i INSTALLATION PROCEDURES: 1. LOCATE FIRST HOLE ON CENTERLINE OF POLE LINE (SEE DIAGRAM). TRI-ANCHOR ITEM NO. 122A 122B 2. FIT TEMPLATE TO BUTT END OF POLE LOCKING ARMS IN POSITION (SEE ILLUSTRATION). 280—380mm 3BO-480mm DIA. AT POLE BUTT 3. DRILL FIRST HOLE THE SPECIFIED DIAGRAM (SEE SPECIFICATIONS) 790mm DEEP. (11--15-) (15"-19") i AFTER THE FIRST HOLE IS DRILLED. PLACE TAPER PIN OF TEMPLATE IN IT AND DRILL 48-57mm 64mm HOLES 2 AND 3 USING TEMPLATE AS A GUIDE. ROCK DRILL DIAMETER (2-1/8--2-1/4") (2-1/2") 4. DRILL HOLES AS VERTICAL AS POSSIBLE. DRILLING TEMPLATE ITEM NO. 123A 123B 5. PLACE "TRI-ANCHOR" IN HOLES. Wn~H NUT ON TOP END OF ANCHOR ROD, ON ALL 3 i LEGS. "TRI-ANCHORS" ARE SHIPPED IN THIS CONDITION. 6. INSTALL 6 STUD BOLTS WITH NUTS LOOSE ON SAME. 7. TIGHTEN NUT OF ANCHOR ROD FIRMLY TO EXPAND EXPANSION SHELL. IF INSUFFICIENT TORQUE DEVELOPS, ROCK IS VERY POOR, AND AN ALTERNATIVE LOCATION OR METHOD SHOULD BE USED. GROUTING OF HOLES IS NOT REQUIRED FOR DEVELOPMENT OF STRENGTH i AND BOND. BUT MAY BE DONE WHERE WEATHERING OF ROCK OR ICE IS OF CONCERN. 8. THE ANCHOR IS NOW READY TO RECEIVE THE POLE. 9. INSTALL POLE AND HOLD IN VERTICAL POSITION. UNIFORMLY TIGHTEN ALL 6 STUD BOLTS. (YOU CAN REMOVE HOISTING EQUIPMENT AFTER STUDS ARE TIGHT). i 10. INSTALL ALL LAG BOLTS TO COMPLETE INSTALLATION. 11. THE POLE ANCHOR CAN BE USED FOR TANGENT, ANGLE OR DEADEND STRUCTURES, HOWEVER, IT IS NOT AS STRONG AS THE POLE ITSELF AND THEREFORE SHALL BE GUYED IN ALL CIRCUMSTANCES. i FOR TANGENT STRUCTURES THE POLE SHALL BE GUYED IN BOTH DIRECTIONS. INSTALLATION DETAILS I FOR POLE ON ROCK i (TRI-ANCHOR) DWG. 19-26 I n I •TURN DOWN AFTER CRIB HAS BEEN COMPLETED I I •SEE NOTE 1 32 150 84 I 1500 (WITH BUTTON HEAD) (WITH 90" BEND) I FASTENING ROD I SEE NOTE 2 SEE NOTE 2 I I r BOG i i • SEE NOTE 3 TYPE 1 TYPE 2 NOTES: i 1. CORNER FASTENING ROD SHALL HAVE A MAXIMUM OF 150mm BENT TOWARD POLE AT TOP OF CRIB. 2. BOULDERS OR QUARRY ROCK MUST HAVE A MINIMUM GRADE OF 100mm AND A MAXIMUM GRADE OF 250mm. 3. NORMALLY THE BUTT OF THE POLE CAN BE INSTALLED IN SOLID EARTH WITHIN IT'S POLE SETTING DEPTH (P.S.D.), HOWEVER IF THIS IS NOT POSSIBLE AND SOLID FOOTING CAN BE OBTAINED WITHIN 900mm (MAX.) OF THE P.S.D., THEN THE BOG SHOULD BE EXCAVATED AND FILLED WITH ROCK BELOW THE P.S.D. TO SOLID EARTH BEFORE THE POLE IS ERECTED. IF NONE OF THE ABOVE IS POSSIBLE, THE POLE(S) SHOULD i BE RELOCATED OR A SPECIAL BOG STRUCTURE USED. i STANDARD CRIB ARRANGEMENT TYPE 1 AND 2 DWG. 19-27 I 1 SECTION 19 - CONSTRUCTION PRACTICES g 19.08 Pole Marking I Pole ownership, date nail, and numbering identification tags are to be • placed as illustrated on DWG 19-28. I 19.09 Grounding and Bonding J Grounding coils shall be placed in accordance with the installation details • shown on DWG 19-29. Ground coils are required on all Joint Use Poles supporting equipment such as distribution transformers. Additional I •* ground coils shall be installed if these grounds do not satisfy the I requirement of at least one (1) ground per 300 meters. If additional grounds are required on an existing Pole, ground rods shall | be installed as per the installation details on DWG 19-30. I The bonding and grounding of communication cables to the Pole Line I ground shall be at the beginning and the end and at approximately 300 I meter intervals along the Joint Use Pole Line. The connection of the communication ground wire to the structure ground is shown on DWG 19-31. I /113 I I I SECTION 19 - CONSTRUCTION PRACTICES I • Communication guys that are not effectively grounded through the strand bolt shall be bonded to the strand as shown on DWG 19-31. I I Hydro's guy bonding arrangement is shown on DWGs 19-32 and 19-33. I I I I I I I I I I I I /114 I PLASTIC OR ALUMINUM NUMBERS AND LETTERS POWER CO. NOS.- anon OWNERSHIP TAG- •I I anab E COMM. CO. NOS.- £ o in DATE NAIL- OWNERSHIP NAIL- (OPTIONAL) I I. NOTES: 1. OWNERSHIP TAGS WILL BE INSTALLED ON ALL JOINTUSE POLES AS SHOWN. 2. THE POLE OWNER WILL SUPPLY AND INSTALL HIS OWNERSHIP TAGS. 3. POLE NUMBERING BY EACH UTILITY WILL BE LOCATED AS SHOWN ON THE DIAGRAM. 4. THE DATIING NAIL WILL BE INSTALLED AT THE TIME OF CONSTRUCTION BY THE UTILITY ERECTING THE POLE. STANDARD MARKING FOR JOINT USE POLES DWG. 19-28 I GROUND COIL DETAILS BUTT SECTION FIG. 'A' - FIG. 'B' - GROUND ROD INSTALLATION GROUND COIL INSTALLATION NOTES (FIG. 'A'l: NOTES (FIG. 'A'): 1. A GROUND ROD IS TO BE USED WHERE IT IS IMPRACTICAL 1. A GROUND COIL IS TO BE USED FOR TRANSFORMERS AND OTHER TO INSTALL A GROUND COIL. APPARATUS ON THE WOOD POLES. 2. THE GROUND WIRE SHALL BE COVERED WITH A PVC 2. THE GROUND COIL WILL HAVE TO BE MADE UP AND CLAMPED ON GROUND WIRE MOULDING. THE MOULDING SHALL BEGIN PRIOR TO INSTALLING THE POLE. 150mm ABOVE GRADE AND BE CLAMPED AT 600mm INTERVALS. 3. THE COIL IS CONSTRUCTED BY WRAPPING TURNS OF NO. 4 BARE STRANDED COPPER WIRE AROUND THE POLE BASE AS SHOWN ABOVE. 4. THE WIRE USED FOR THE GROUND COIL SHOULD BE OF SUFFICIENT LENGTH TO EXTEND AND CONNECT TO THE SYSTEM NEUTRAL. 5. THE GROUND WIRE SHALL BE COVERED WITH A PVC GROUND WIRE MOULDING. THE MOULDING SHALL EXTEND 150mm BELOW FINAL GRADE AND BE CLAMPED AT 600mm INTERVALS. 6. A GROUND COIL IS NOT RECOMMENDED WHERE THE POLE IS RESTING ON A ROCK FOUNDATION. STANDARD GROUND ROD AND GROUND COIL INSTALLATION DETAILS DWG. 19-29 I SEE NOTE 6 I I I I I I (SEE NOTE 2) I I NOTES: 1. A SYSTEM OF GROUND RODS IS TO BE USED WHERE IMPROVED GROUND RESISTANCE IS REQ'D. 2. GROUND RODS SHALL BE INSTALLED IN UNDISTURBED EARTH (AT LEAST 460mm FROM WOOD POLES) TO ENSURE BEST POSSIBLE CONTACT WITH SOIL. 3. THE GROUND ROD SHALL BE DRIVEN VERTICALLY. IF THIS IS NOT POSSIBLE THE GROUND ROD I MAY BE DRIVEN AT AN ANGLE NOT LESS THAN 45" TO THE HORIZONTAL TO IT'S FULL DEPTH. 4. FOR PROTECTION THE GROUND ROD AND GROUND WIRE SHALL BE BURIED AT LEAST 150mm BELOW FINAL GRADE. 5. THE GROUND WIRE SHALL BE COVERED WITH A PLASTIC GROUND WIRE GUARD. THE GUARD I SHALL EXTEND 150mm BELOW THE FINAL GRADE AND BE CLAMPED AT 600mm INTERVALS. 6. SEE STANDARD GROUNDING DETAILS, PAGE 19-36. I I I I STANDARD GROUND ROD INSTALLATION DETAILS i (FOR IMPROVED GROUND RESISTANCE) DWG. 19-30 BONDING STRAND TO VERTICAL GROUND BONDING STRAND TO MULTI-GROUND NEUTRAL •2.0 METER fSr SLACK COIL NO. 6 GRD. WIRE- TOP OF COMM. SPACE CLAMP- CLAMP STRAND STRAND innnh I I L COMM. CABLE L COMM. CABLE POWER CO.- VERT. GRD. POLE POLE COMMUNICATION CO. CONNECTION POWER CO. CONNECTION SEE NOTE 1 IMITATION COMMUNICATION GUY tUMCATJON .SJRANfJ ). 6 GROUND WIRE NOTE: 1. TOP GUY IS EFFECTIVELY GROUNDED THROUGH BOLT. COMMUNIC COMMUNICATION GROUND WIRE CONNECTIONS TO STRUCTURE GROUND DWG. 19-31 I I I I I SEE NOTE 1 DOUBLE GUY (G-2d) I BONDING DETAIL ARRANGEMENT I I t I I SEE NOTE 1 SINGLE GUY (G-d) I BONDING DETAIL ARRANGEMENT NOTE: 1. TERMINAL PIN AND KSU CONNECTOR (CHART 14-3) TO BE I USED WHEN BONDING TO COPPER NEUTRAL. I I I GUY BONDING i ARRANGEMENT DWG. 19-32 I I ( I I I I VIEW 'B'-'B' DOUBLE O.H. GUY TG-OH2') BONDING DETAIL ARRANGEMENT I I r i i VIEW 'A'-'A' i SINGLE O.H. GUY (G-OHO BONDING DETAIL ARRANGEMENT NOTE: 1. TERMINAL PIN AND KSU CONNECTOR (CHART 14-3) TO BE USED i WHEN BONDING TO COPPER NEUTRAL. i i I GUY BONDING ARRANGEMENT i DWG. 19-33 I I SECTION 19 - CONSTRUCTION PRACTICES | 19.10 Easement Widths and Lines I The minimum Joint Use easement widths shall be as follows: I I Urban Lines (Span Lengths less than 200' or 61 Meters) (1) Two and three phase primary conductor and communication cables - 7.4 meters I (2) Single phase primary conductor and communication cables - 5.4 meters t I (3) Secondary and communication cables - 3.0 meters (minimum) (4) Guy wire and Anchors - 3.0 meters wide x 8 meters long I • Rural Lines (Crown Land) I (1) Single phase and three phase primary conductor and communication I cables - 9 meters I r /121 I I SECTION 19 - CONSTRUCTION PRACTICES I (2) Guy wires - 3.0 meters wide x 10 meters long I The Joint Use Pole Line shall be located in the centre of the easement. I I I I I I I I I I I I L /122 I l_ SECTION 19 - CONSTRUCTION PRACTICES | 19.11 Tree Clearing and Trimming I For new construction of Joint Use Pole Lines supporting primary • conductors, the right-of-way shall be cleared in full width of the easement I area, including all overhanging branches. The cleared section should be increased in locations where high trees or upslope is encountered. For secondary and service lines, a cleared width of three meters should be | adequate providing the area is well sheltered and there is reasonable • assurance that trees will not fall into the line. To provide adequate working conditions, all brush and stumps are to be cut within 150 mm of ir existing grade. All cuttings, trees, deadfall, bark and debris shall be I burned or otherwise removed from the right-of-way. Where trees are located near energized power lines, a rope shall be used to anchor the tree to ensure that once cut, it will not contact the line. Once cleared, the I owner may cut, use spray or pellets, subject to environmental regulation, • or other acceptable method to control the growth of underbrush. I Most properly maintained rights-of-way will require no tree trimming. I However in areas where trees are maintained for aesthetic reasons, trimming is essential. Trimming, in general, should be carried out when ' branches reach a 2 meter radius for fast growing trees and 1 meter radius • /123 I I SECTION 19 - CONSTRUCTION PRACTICES for slow growing trees when adjacent to primary conductor and/or 1 meter • radius for fast growing trees and 0.5 meter radius for slow growing trees when adjacent to secondary power lines and communication cable. All • deadwood which could blow into the line or trees which are leaning or I appear to have inadequate support shall be removed during the trimming process. Special consideration shall be given to trees near school yards and playground areas to eliminate the possibility of climbing by children J near energized conductors and/or cables. I r 19.12 Vertical Runs on Poles I Vertical runs of conductors and ground wires shall be protected from the ground up 2400mm with suitable material of adequate electrical insulating and mechanical properties. Where the vertical run consists of cable having I effectively grounded continuous metal sheath or cable adequately insulated • for the voltage concerned, then the protection may consist of metal guard, or conduit, without insulating properties. I I Supply and communication vertical runs should not be made on the same Poles. Where it is not practical to place them on separate Poles, they shall • • /124 I I SECTION 19 - CONSTRUCTION PRACTICES at least be 90° apart. A typical riser arrangement is shown on DWG 19- I I I I I I I I I I I I /125 y E y i E ABOVE COMM. y 1 8 SPACE y (1 0 y E y COMMUNICATION CABLE b 1 v £ COMMUNICATION ° SPACE y CD 1 y y / y y y y y y y / Z^ U L?UAKU L/K UUINUUM y / . --•-' y / y y y / y / y / y / y / y / y / y ^-^ / y z y -^ 90" y E / o y r FINISHED GRADE o / y [ ^ ^- POWER CABLE NOTES: 1. CONCRETE ABUTMENT MAY BE REQUIRED AROUND DUCTS OR GUARDS IF EXPOSED TO VEHICULAR TRAFFIC. 2. SUPPLY SPACE AT DEADEND DIP POLE MUST BE AT 90* TO DOWN GUY TO ALLOW FOR COMMUNICATION GUY ATTACHMENT. POLE RISER DETAIL DWG. 19-34 I 1^ SECTION 19 - CONSTRUCTION PRACTICES J 19.13 Standard Symbols I The following exhibits show the most common symbols used by I Newfoundland Telephone and Hydro. I EXHIBIT A - Newfoundland Telephone's Symbols | EXHIBIT B - Hydro's Symbols I I I I I I I I I /127