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Electric utilities

Federal Communications Commission Orders Arizona Public Service Co. to Show Cause for Failure to Act in Good Faith

Strategic Insights

— 1 min read

The Federal Communications Commission (FCC) has directed the Arizona Public Service Co. (APS) to show cause why it should not be deemed to have failed to act in utmost good faith in its dealings with Sprint and the TA. This decision comes after APS refused to execute a Frequency Reconfiguration Agreement (FRA) with Sprint, as directed by the FCC's Memorandum Opinion and Order released on March 10, 2015. APS had three and a half months to conclude an FRA with Sprint, but instead, the parties pursued the negotiation of an upgrade, which was deemed unacceptable by the FCC.

Key Takeaways:

  • The FCC has directed APS to show cause why it should not be deemed to have failed to act in utmost good faith in its dealings with Sprint and the TA.
  • APS had three and a half months to conclude an FRA with Sprint but refused to execute the agreement, citing concerns over frequency conflicts.
  • The FCC's Memorandum Opinion and Order released on March 10, 2015, directed APS to conclude an FRA with Sprint, but APS delayed the process by pursuing the negotiation of an upgrade.
  • The FCC has ordered APS to show cause for its failure to act in good faith and has given the company 5 business days to respond.
  • The parties are required to continue negotiating each business day until they reach agreement in principle.
  • Failure to act in good faith can result in a licensee's facilities being relegated to secondary status, where they must not interfere with other licensees and must accept interference from other licensees without recourse.
  • A licensee that does not operate in good faith can also be required to pay its own reconfiguration costs.

Statistics:

  • 61 days: The estimated time it will take to commence rebanding after execution of the FRA.
  • 77 days: The expected duration of the rebanding process.
  • 3.5 months: The time APS had to conclude an FRA with Sprint before being ordered to show cause.
  • 5 business days: The time APS has to respond to the FCC's order to show cause.

Sources:

  • Federal Communications Commission DA 15-765
  • Memorandum Opinion and Order, released March 10, 2015
  • Fifth Report and Order, 28 FCC Rcd 4085, 4105 P 63 (2013)
  • 47 C.F.R. SS 90.677(c)
  • License Acquisitions, LLC and Nextel Communications, Inc., Order, 29 FCC Rcd 5761, 5762 (PSHSB 2014)

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