FCC Dismisses Arizona Public Service Company's Petition for Reconsideration

The Federal Communications Commission (FCC) has dismissed the Petition for Reconsideration filed by Arizona Public Service Company (APS) regarding the 800 MHz rebanding process. The decision was made by the Deputy Chief of the Policy and Licensing Division, Public Safety and Homeland Security Bureau, Michael J. Wilhelm. The petition was filed on April 9, 2015, in response to the Commission's Memorandum Opinion and Order (MO&O), which found that APS failed to meet its burden of proof to demonstrate that its cost estimate for rebanding its 800 MHz communications system met the Commission's Minimum Necessary Cost Standard.

Key Takeaways:

• APS's Petition for Reconsideration failed to demonstrate a material error or omission in the MO&O, which found that APS had not carried its evidentiary burden to show that its cost estimate met the Commission's Minimum Necessary Cost Standard.
• The revised Creative Quote submitted by APS was not a matter of record and did not constitute "new facts or changed circumstances" as required by Section 1.106 of the Commission's Rules.
• APS had ample planning time to produce a cost estimate that comported with the Minimum Necessary Cost Standard but chose to rely on a higher cost estimate, which was not withdrawn until after the record had closed and a decision was issued.
• The Commission has held that parties' conformity to the Commission's procedural rules is essential to the timely completion of 800 MHz rebanding.
• The FCC dismissed APS's Petition for Reconsideration, relying on Section 1.106 of the Commission's Rules, which prohibits the consideration of new evidence or arguments not presented to the designated authority.

Statistics:

• The Commission's Minimum Necessary Cost Standard requires that relocating licensees, such as APS, certify that "the funds requested for reconfiguration are the minimum necessary to provide facilities comparable to those presently in use."
• The MO&O approved $1,193,208 for the rebanding of APS's system, which is $1,435,514 less than APS's requested $2,628,722, but $405,913 more than the Creative Quote.
• The revised Creative Quote submitted by APS included costs for services that had been disallowed in the MO&O.
• The FCC has issued multiple orders and precedent in the 800 MHz rebanding process, including the 800 MHz Report and Order and subsequent orders and precedents.

Sources:

• In the Matter of Arizona Public Service Co. and Sprint Nextel Corp. WT Docket No. 02-55 ORDER ON RECONSIDERATION Adopted: May 4, 2015 Released: May 4, 2015
• Memorandum Opinion and Order, 61 Communications Reg. (P&F) 1727 (PSHSB 2015)
• Proposed Resolution Memorandum of Licensee dated August 7, 2014
• TA Recommended Resolution, Mediation No. TAM-45010, filed September 8, 2014
• 800 MHz Report & Order, 19 FCC Rcd at 14977, 11.
• 47 C.F.R. sections 0.191, 0.392, and 1.106.