[BC] Electrical Code

[Paul Christensen]

> It seems to me that the cost per mile of expensive poles (purchase plus
> labor to install them and the wire) would be more than offset by the cost 
> of
> plowing/trenching in somewhat more costly underground cable.

It's not just the CAP-X cost.  Operating costs run considerably higher with 
U/G installations, including the effect of increased depreciation.  Although 
it's true that depreciation is a non-cash event, it has significant 
implications for net income.  Many utilities, including the ones I've worked 
for, stress EBITDA to its investors as the real-world operating earnings, 
but it's nothing more than "voodoo economics."   Those high CAP-X costs have 
to be expensed over time and there's no way around it.

Also, many municipalities charge a higher fee for U/G easement access. 
That's a pretty big part of our current business -- negotiating fees and 
access rights between municipalities, CATV companies, and common carriers. 
There's more at risk in the U/G easement (e.g., water and gas) and on a 
per-mile-of-plant basis, utilities spend much more time there on projects 
than with aerial installations.

Paul

====================================
Paul Christensen, CPBE, CBNT
LAW OFFICE OF PAUL B. CHRISTENSEN, P.A.
3749 Southern Hills,  Jacksonville, Florida 32225
Office: (904) 379-7802   Facsimile: (904) 212-0050
pchristensen at ieee.org