Pole Attachment Bond - Federal in All States
Table of Contents
Brief Summary
Utilities routinely ask cable, fiber and wireless companies for a surety bond before signing a pole attachment agreement or letting a contractor touch their poles. A bond satisfies that security requirement without handing the utility a cash deposit or a letter of credit that eats into your credit line.
A pole attachment bond is posted by a cable operator, telecommunications carrier, broadband provider or make-ready contractor in favor of the utility that owns the poles. It guarantees payment of attachment rental fees and make-ready charges, removal of unauthorized or abandoned attachments, and repair of damage under the pole attachment agreement. The amount is set by the utility's agreement, not by a federal statute.
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How to Apply for a Pole Attachment Bond:
- Get the bond amount and any required bond form from the utility's pole attachment agreement.
- Confirm the exact legal name of the utility to be named as obligee.
- Company legal name and address exactly as they appear in the attachment agreement.
- Complete the bond application and review the premium quote.
- Sign and return the executed bond to the utility's joint use or pole attachment contact.
Detailed Information About the All States Pole Attachment Bond:
Where the requirement comes from
Federal law, 47 U.S.C. 224, gives cable television systems and telecommunications carriers a right of nondiscriminatory access to utility poles, ducts, conduits and rights of way, and has the FCC regulate rates, terms and conditions. States that certify they regulate pole attachments themselves take over that role in their territory. Neither the statute nor the FCC rules set a bond amount. The bond requirement almost always comes from the utility's own pole attachment agreement or tariff, so the obligee is the utility and the terms are in that contract.
The one place the FCC rules mention a bond
Under the FCC's self-help and one-touch make-ready rules, 47 CFR 1.1412(c) lists minimum qualifications for contractors who survey, estimate or perform make-ready work. Paragraph (c)(5) requires that the contractor is adequately insured or will establish an adequate performance bond for the make-ready it will perform, including work on facilities owned by existing attachers. A contractor working off an utility list, or one chosen by a new attacher, can use this bond to meet that test.
What the bond typically guarantees
Attachment agreements usually use the bond to secure the attacher's performance of the contract. That commonly means paying annual rental and make-ready invoices, correcting safety violations, transferring or removing attachments when the utility replaces a pole, and paying for damage to utility plant. If the attacher defaults, the utility claims against the bond and the attacher repays the surety.
Amount
Each utility sets its own figure, often by number of poles, the size of the project or a flat amount in the agreement. Get the required amount, the bond form and the exact obligee name from the utility's joint use or pole attachment department before the bond is issued.
Eligibility and Requirements for an All States Pole Attachment Bond:
- A signed or pending pole attachment agreement with the pole owning utility.
- Bond amount set by the utility, not by federal statute.
- For make-ready contractors, adequate insurance or a performance bond under 47 CFR 1.1412(c)(5).
- Compliance with the National Electrical Safety Code and the utility's published safety guidelines.
- Bond kept in force for the term of the agreement and any removal period it specifies.
All States Pole Attachment Bond FAQs:
The FCC does not set a bond amount for attachers. Its make-ready contractor rule at 47 CFR 1.1412(c)(5) does require contractors to be adequately insured or post an adequate performance bond. Attacher bonds usually come from the utility's agreement.
That depends on the utility and your project. The figure is written into the pole attachment agreement or the utility's application package.
The bond amount, the company's credit and financial statements, and the obligations in the agreement. Larger bonds usually need business financials.
Not usually. State rules govern rates and access terms, but the bond is still set by the utility's agreement. Check your state commission's rules for any security limits.
