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Canton Opposes AT&T’s Proposal to Shift Cost of Utilities Relocation to Cities and Ratepayers

Canton joins other Ohio communities in opposing an AT&T proposal that cities say could shift the financial burden of moving some utility lines to taxpayers.

The Canton City Council on Monday approved legislation supporting the Ohio Municipal League’s challenge of AT&T Ohio’s rate application filed with the Public Utilities Commission of Ohio in December. The filing proposes rate changes that city leaders say would require municipalities to pay the full cost of moving or undergrounding AT&T’s facilities that are on public streets.

Ohio law currently allows public entities to require AT&T and other third-party utilities to relocate their lines at their own expense if the relocation is necessary for government purposes. But the Ohio Supreme Court has ruled that third-party utilities can pass on relocation costs to the government agency if it is included in their approved rate language.

The Ohio Municipal League is coordinating efforts on behalf of Ohio municipalities to challenge the change.

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Phil Hayes, senior public relations manager at AT&T Corporate Communications, said AT&T Ohio’s filing is solely to address requests for “relocation and undergrounding” of AT&T’s facilities.

“The high cost of moving existing air facilities underground for beautification purposes is the basis of the proposal,” Hayes said in a statement. “The typical relocation of AT&T facilities to accommodate municipal projects, such as widening roads, adding turn lanes, improving intersections, or similar purposes that meet public safety and welfare objectives, would not be addressed by the proposal affected.”

He said Ohio Power, based in Canton, has had the same features AT&T is seeking since about 1992.

“AT&T is following a precedent of more than 30 years,” he said.

Here are three things you need to know about Canton law:

1. Canton accelerated its opposition

The canton council accelerated the legislation by at least three weeks to meet the Jan. 17 deadline for filing an appeal with the Public Utilities Commission. Without any challenge, Canton officials said they fear AT&T’s application would be automatically approved and the change would take effect Jan. 18.

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Once a challenge is filed, the state commission is expected to pause the automatic approval process, give challengers the opportunity to be heard through a hearing and consider legal arguments.

2. The potential financial impact on Canton is unknown

Canton Service Director John Highman Jr. said the opposition is not due to any specific project and it is unknown how much the proposed rate change could impact the city financially. Canton’s legislation notes that taxpayers who may not be AT&T customers could be required to pay for the relocation of AT&T facilities that are publicly accessible under the proposed change.

3. No money has been involved in Canton’s challenge yet

Canton’s legislation only allows the country to participate in the challenge. It does not include authorization to spend money on this challenge, even though the Ohio Municipal League has advised cities that financial assistance may be needed if the issue cannot be resolved at the state commission level. Any financial support would have to be voted on at a future council meeting.

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4. Several other communities in Ohio are also participating in the challenge

Several other cities and towns in Ohio are considering legislation this week in support of the Ohio Municipal League’s challenge to AT&T’s rate application, including Cleveland, Xenia, Troy, Upper Arlington, Greenfield, Tiffin, Whitehall and Hillsboro.

Reach Canton Repository writer Kelli Weir at 330-580-8339 or kelli.weir@cantonrep.com.

This article originally appeared on The Repository: Canton City Council opposes AT&T’s proposed rate change

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