PCCA Journal 2nd Quarter 2015

The Official Publication of the Power & Communication Contractors Association 2nd Quarter 2015 Inside • PCCA Celebrates 70th Anniversary in Sunny Aruba • Avoiding the Solar Cliff: An Alternative to the ITC Phase-Out • PCCA Mid-Year Meeting Heads to Historic Charleston No Blues, Brother: PCCA Auction Breaks Records Michael Whitebread and Charles Cook from J.J. Kane Auctioneers rock the PCCA Auction.

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2nd Quarter 2015 Officer Directors Official Publication of the Power & Communication Contractors Association Board of Directors Publication Staff 1908 Mt. Vernon Avenue, 2nd Floor Alexandria, Virginia 22301 (800) 542-PCCA • www.pccaweb.org ©2015 Power & Communication Contractors Association Garrett Akin Brooks Construction Craig Amerine Amerine Utilities Construction, Inc. Glen Amerine Amerine Utilities Construction, Inc. John Audi MasTec North America, Inc. Robert Breeden ElectriCom, Inc. Tony Briggs Vermeer Corporation Ed Campbell Henkels & McCoy, Inc. Marty Ferguson FS3, Inc. Matthew Gabrielse Gabe’s Construction Co., Inc. Robin Gilbertson J&R Underground, LLC Jerrod Henschel Michels Corporation Chase Lapcinski Push, Inc. Dan Levac Preformed Line Products Rob Pribyl MP Nexlevel, LLC Jameson Ringger NESCO, LLC Heath Sellenriek Sellenriek Construction Steve Sellenriek Sellenriek Construction Don Stephens Tjader & Highstrom Lindsley Thulin Michels Corporation Publisher Timothy Wagner Editor Michael Ancell Advertising Sales Stacy Bowdring Advertising Sales Dana Gilbertson Photography Steven Purcell Information Technology Greg Smela Accounting James Wagner President Timothy D. Killoren TelCom Construction President-Elect Todd Myers Kenneth G. Myers Construction 1st Vice President James Dillahunty Henkels & McCoy, Inc. 2nd Vice President Larry Pribyl MP Nexlevel, LLC Treasurer David Aubrey Okay Construction Secretary John Fluharty Mears Group, Inc. PCCA Celebrates 70th Anniversary in Sunny Aruba 9 The Power & Communication Contractors Association celebrated its 70th Annual Convention, March 6-11, in Palm Beach, Aruba, with more than 300 members and their families in attendance. The convention featured important industry education, captivating speakers, a record-breaking Auction, the Annual Associates Exhibit, the launch of the PCCA Hall of Fame, and a variety of fun-filled events where PCCA members kicked back, got to know one another better, and enjoyed each other’s company. Avoiding the Solar Cliff: New Stanford Research Offers Alternative to ITC Phase-Out 21 The prospects for the widespread adoption of solar power are sunnier than ever. Thanks to incentives and plummeting costs, the solar photovoltaic industry is experiencing dramatic growth, accounting for almost a third of new generating capacity in the U.S. in 2014, second only to natural gas. The problem is, unless there is a change to current legislation, the solar power industry in this country is headed for a cliff. This article offers a solution. PCCA Heads to Historic Charleston 45 The 2015 PCCA Mid-year Meeting is September 23-26 in Charleston, S.C. Downtown Charleston sits on a peninsula a stone’s throw from the Atlantic Ocean and is one of the best-preserved cities in the American South. It offers visitors colorful history, a scenic waterfront, and seemingly endless options for dining, shopping, golfing, exploring, and carousing. Turn to page 45 for meeting details. Power News 25 Telecom News 31 RUS News 37 Safety News 43 PCCA Member News 51 New PCCA Members 58 Industry Calendar 58 Advertiser Index 58

PCCA Journal|2nd Quarter 2015 8 scottpowerline.com • Monroe, LA - 877-388-9269 • McDonough, GA - 877-396-1500 From aerials and bucket trucks to cranes, dozers, drills and tracked digger derricks. Just make the call!

PCCA Journal|2nd Quarter 2015 9 The Power & Communication Contractors Association celebrated its 70th Annual Convention, March 6-11, in Palm Beach, Aruba, with more than 300 members and their families in attendance. The convention featured important industry education, captivating speakers, a record-breaking Auction, the Annual Associates Exhibit, the launch of the PCCA Hall of Fame, and a variety of fun-filled events where PCCA members kicked back, got to know one another better, and enjoyed each other’s company. PCCA kicked off the convention with the second installment of its Leadership Development Program (LDP), an ongoing learning experience that focuses on a particular aspect of construction industry leadership. The full-day LDP session in Aruba, led by FMI’s Andy Patron, was on Executive Communication. On the next day, PCCA Past President Steve Spears addressed the LDP group, recounting his fascinating journey from working his way through college for Indiana Ma Bell to owning Bonneville Contracting & Technology Group, Inc., in Hato Rey, Puerto Rico. Spears’ speech was organized around a list of “Always be...” pieces of advice, along with relevant examples from his own career, that would make an excellent roadmap for any up-and-coming construction executive. For example, “Always be honest. Run from dishonesty; it will put you out of business.” Another important one: “Always be learning. The truth will set you free.” Another educational highlight at every PCCA convention is the Utility Construction Industry Overview from FMI’s Chris Daum. Daum had good news for PCCA members again this year, saying that the utility market is the most profitable construction sector in North America. He said that the next five years in telecom are going to be “absolutely wild,” driven by the ever-growing demand for mobile broadband, and that power is a very healthy market, “the largest contributor to overall construction spending except single-family homes.” Other education highlights were the Construction Industry Roundtable, with an upbeat economic forecast from Mark Bridgers of the Continuum Advisory Group, and a session on finding and retaining top employees, which was very relevant given the shortage of qualified workers in the construction industry today. Ken Schmidt, who was director of communications at Harley-Davidson during the company’s remarkable turnaround in the 1990s, delivered the convention’s keynote address. Schmidt provided plenty of practical business advice peppered with humorous anecdotes and cool motorcycle stories. He told the audience that their customers like seeing passion, calling it “the most attractive human trait.” John Heerema, the main speaker during PCCA’s Annual Prayer Breakfast, kept his audience spellbound as he explained the heroic work of his Big Life Ministries, a nondenominational, rapidly reproducing church-planting movement that is literally transforming some of the spiritually darkest places and groups in the world. The movement grows at an astounding rate each year, transforming more than 200,000 lives. During the convention, the association inducted four of the ten individuals who comprise the inaugural class of the PCCA Hall of Fame: Edwin Malzahn, Ditch Witch; Austin Shanfelter, Shanco Corp., MasTec North America, Global HR Research; Steve Spears, Bonneville Contracting & Technology Group; and Gary Vermeer, Vermeer Manufacturing. The remainder of the class will be inducted during the 2015 MidYear Meeting, September 23-26 in Charleston, S.C., including Ken Atkinson, Jimmie Brooks, Max Clark, Ted Koenigs, Winston Weaver, Jr., and Winston Weaver, Sr. The liveliest part of the convention, as usual, was the night of the Annual PCCA Auction, which was masterfully guided by Michael Whitebread and Charles Cook of J.J. Kane Auctioneers. The auction raised a record amount of more than $260,000, which goes toward PCCA programs including the newly created PCCA Past Presidents Scholarships for the children of association members and their employees. PCCA will announce more information on the scholarships in the coming weeks. PCCA members also donated funds for 14 motorbikes for missionaries of Big Life Ministries. At the convention’s Final Banquet, PCCA members saluted outgoing President Steve Sellenriek, Sellenriek Construction, for an outstanding year of hard work and accomplishment, and welcomed new President Tim Killoren, TelCom Construction, and two new Board members: Robin Gilbertson, J&R Underground, and Tony Briggs, Vermeer. PCCA’s next event is the 2015 Mid-Year Meeting, September 23-26, at the Belmond Charleston Place, Charleston, S.C. PCCA Celebrates 70th Anniversary in Sunny Aruba More photos on following pages

PCCA Journal|2nd Quarter 2015 10 Images of PCCA 2015 Keynote speaker Ken Schmidt shared insights on HarleyDavidson’s remarkable turnaround in the 1990s and offered lots of practical business advice. “What are people saying about your company?” he asked. “If there’s no story, there’s no demand.”

PCCA Journal|2nd Quarter 2015 11 Executive Vice President Tim Wagner welcomes Austin Shanfelter to the PCCA Hall of Fame. Shanfelter, Global HR Research, was a longtime Board member and PCCA President in 2006-2007, and he continues to support the association through the HR Program. Outgoing PCCA President Steve Sellenriek, Sellenriek Construction, capped off a busy year by overseeing a record-breaking convention. Sellenriek has championed PCCA’s educational programs, helping develop the Leadership Development Program and the Project Manager Academy and actively participating in both.

PCCA Journal|2nd Quarter 2015 12 Prayer Breakfast speaker John Heerema explains the heroic work of his Big Life Ministries, a nondenominational, rapidly reproducing church-planting movement that is transforming some of the spiritually darkest places on earth. PCCA President-Elect Todd Myers, Kenneth G. Myers Construction, welcomes members to the Construction Industry Roundtable as the speakers finalize their presentations. From left, John Fluharty, Mears Group; Heath Sellenriek, Sellenriek Construction; Myers; and Mark Bridgers, Continuum Advisory Group.

PCCA Journal|2nd Quarter 2015 13 Prayer Breakfast scripture readers Roxanne and Paige Sellenriek, Sellenriek Construction, are moved by John Heerema’s powerful message. Newly inducted PCCA Hall of Famer and Past President Steve Spears, Bonneville Contracting & Technology Group, imparts years of industry wisdom during the Leadership Development Program. “Always be humble,” he told the audience. “Make sure you recognize those who aided in your success.” All of PCCA’s photos from the 2015 convention are available on the members-only section of www.pccaweb.org. If you need help accessing this section, contact webmaster@pccaweb.org.

PCCA Journal|2nd Quarter 2015 14 From left, Jane and Dale Brown, Global Machinery, grab a bite and chat with Christian Miller, Pelsue Company. Jeff Johnson and Bud Shaw, Scott Powerline & Utility Equipment, prepare their tabletop exhibit. Dan Levac, Preformed Line Products, left, and Gareth Buerky, C-Com, Inc., discuss jobsite challenges (or maybe Ohio State vs. Mizzou). Dave Aubrey, Okay Construction, center, meets Brian Mattson, left, and Mark Gallucci of Digital Control, Inc. Tracy Barnett, Graybar Electric Co., in the blue shirt, talks power construction with Brad Baumann, right, and Lars Nyquist of Gabe’s Construction. Rob Hill, American Augers, left, discusses underground boring with Nick Anderson, Anderson Underground. PCCA 1st Vice President Jim Dillahunty, Henkels & McCoy, and Will LeBlanc, HammerHead, talk business. Annual Associates Exhibit & Breakfast Phil Peppers, ProCom Sales, discusses the telecom business with PCCA Board member Ed Campbell, Henkels & McCoy.

PCCA Journal|2nd Quarter 2015 15 Lori and Don Stephens celebrate Lori’s winning bid on a suite for next year’s convention at the Ocean Reef Club. Michael “Jake”Whitebread masterfully guides PCCA’s raucous and record-breaking Annual Auction. This guy seems pretty comfortable with this whole bidding thing. Oh yeah, it’s Joe Kane from J.J. Kane Auctioneers and his wife, Sharon, having a fun time. The PCCA Auction is nothing if not a bigsmile event. Offering up proof are, left, Lyn Thulin, Michels Corporation; above, Colton and Brody Gipson, sons of Troy Gipson from Vermeer Midwest; and left, Erica Prosser (daughter of American Auger’s Rich Prosser) and Amanda Smith. James Clark, C-Com, Inc., and Matt Gabrielse, Gabe’s Construction, closely monitor Dee Clark’s bidding during the Silent Auction. Annual Auction & Reception

PCCA Journal|2nd Quarter 2015 16 Check out the form from FS3’s Mitch McGuire—dude definitely got game. Taking a break from the off-road safari to enjoy the view are Mark and Rhonda Gallucci, Digital Control, Inc. Human foosball was a big hit at the DePalm Island Adventure. From right, Jaime Espinosa, Corning Cable Systems, and Denis Scharnhorst, Superior Essex, try to work the ball around Carly Gilbertson and John “The Shin Bruiser” Granberg, J&R Underground. Everybody is on-board for the banana boat ride, but not for long! It’s the Muscle Beach Senior Tour with Brad Radichel, Condux International, and Steve Pauk, SCS Telecom Supply. Larry Sevy, POWER Constructors, and Cathy O’Connor enjoy a splashing good time at the water park.

PCCA Journal|2nd Quarter 2015 17 UTVs roll along the rugged coast during a bumpy and beautiful tour of the Aruban outback. Nick and Carrie Anderson, Anderson Underground, look ready to hold up the stagecoach, but really they’re just going to kick up some dust on the UTV tour. The PCCA crew heads out to DePalm Island for a day of swimming, snorkeling, and beach fun. Call them superstitious, but Jerrod Henschel, Michels Corporation, and Steve Sellenriek, Sellenriek Construction, try to absorb some good vibrations from Alice, the Aruban totem. Alice? Enjoying the Beach Bash are Ryan and Stephanie Pauk, SCS Telecom Supply. Lisa Wagner presents outgoing President Steve Sellenriek with the PCCA Distinguished Service Award. Boogying down at the Beach Bash are, from left, Kellea LeBlanc, Medea Gabrielse, and Angela Palladino.

PCCA Journal|2nd Quarter 2015 18 Denis and Gail Hanna, Greenlee Textron, are flanked by Sherman + Reilly’s Robert Orr, left, and Steven Forrester. Jason Andringa accepts the PCCA Hall of Fame award for his late grandfather Gary Vermeer, founder of the Vermeer Corporation and an industry pioneer. Andrew and Allison Jobes, Caterpillar, and Dave Aubrey, Okay Construction, take in a beautiful evening on the Caribbean during the VIP Reception. Always a hit at PCCA meetings, FMI’s Chris Daum delivers his much-anticipated Utility Construction Industry Overview. Tucker Dotson, right, accepts the PCCA Hall of Fame award for Ditch Witch founder Edwin Malzahn. Though unable to attend, Malzahn sent a delightful video thanking the association for the honor. Andy Patron, FMI, leads the Leadership Development session on Executive Communication. Mark Chicoine, Ditch Witch of Minnesota, enjoys an educational session. A gorgeous Caribbean sunset makes an ideal backdrop for Chase Lapcinski, Push, Inc., and Kiana Tom. Gene Marks talks to PCCA members about finding good people and retaining them during these challenging times.

PCCA Journal|2nd Quarter 2015 19 70th ANNUAL CONVENTION Hyatt Regency Aruba Resort Spa and Casino March 6-11, 2015 Thank You Sponsors

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PCCA Journal|2nd Quarter 2015 21 The prospects for the widespread adoption of solar power are sunnier than ever. Thanks to incentives and plummeting costs, the solar photovoltaic industry is experiencing dramatic growth, accounting for almost a third of new generating capacity in the U.S. in 2014, second only to natural gas. The U.S. Energy Information Administration projects an increase of 6 gigawatts of utility-scale solar capacity by the end of 2016 (for comparison, the Hoover Dam has a maximum output of 2 GW of capacity). Apple recently announced plans to invest $850 million in a utility-scale facility in California while Google dropped $300 million into a SolarCity fund to finance residential solar installations. The U.S. Department of Energy wants solar to provide 14 percent of the power in this country by 2030 and 27 percent by 2050, up from less than 1 percent today. It’s a steep road, but momentum is clearly building. The problem is, unless there is a change to current legislation, the solar power industry in this country is headed for a cliff. A federal tax incentive for solar projects called the Investment Tax Credit is set to expire at the end of next year. That will be a substantial blow to the industry as it’s learning to stand on its own, says Stanford professor Stefan Reichelstein. His new study, coauthored with research associate Stephen Comello, examines why this tax incentive is so important and offers up an alternative that would steer us away from the cliff. The Solar Credit Success Story Designed to support the widespread deployment of solar energy, the Investment Tax Credit was created as part of the Energy Policy Act of 2005 and extended for eight years in the Emergency Economic Stabilization Act of 2008. Specifically, the ITC allows companies that install, develop, or finance solar systems to claim a tax credit in the amount of 30 percent of the investment cost of the project. The ITC helped to spur demand for solar installations, which in turn drove down costs. “The magnitude of the tax credit is very substantial and has given a boost to the solar industry in the U.S.,” Reichelstein said. “Also, the solar industry is cooking not only here in the U.S. but also in many other countries that have their own incentive systems. In terms of worldwide deployments, solar power is on a steep growth curve and there is no sign of it letting up.” However, the 30 percent credit that has been so instrumental in jump-starting the industry in the U.S. is in effect only until December 31, 2016, at which point the credit for commercial developers, who pay corporate income taxes, will drop to 10 percent. Individual homeowners who wish to self-finance would not receive any federal credits on their personal income taxes beyond 2016. Clouds on the Horizon That drop would be a sharp setback to solar’s progress in becoming cost-competitive with other energy sources, Reichelstein shows in his study, “The U.S. Investment Tax Credit for Solar Energy: Alternatives to the Anticipated 2017 Step-Down.” To assess the cost competitiveness of solar photovoltaics, the researchers analyzed the “levelized cost of electricity,” or LCOE, a metric used to compare the lifetime costs of different electricity generation sources. The researchers started by examining the economics of solar photovoltaics in five states that account for more than 80 percent of the solar installations in the U.S.—California, Colorado, New Jersey, North Carolina, and Texas—and across three market segments: residential, commercial, and utilityscale. Considering only the federal ITC, their results revealed a varied landscape of cost competitiveness relative to the rates charged by energy service providers. In California, for instance, residential and commercial solar installations are easily competitive with retail and commercial rates respectively. In Colorado, North Carolina, and Texas, solar installations are close to breaking even with those retail rates. On the other hand, utility-scale solar installations, which have to compete with lower wholesale electricity prices, are not yet competitive in any of the segments. While under these circumstances solar hasn’t reached “grid Avoiding the Solar Cliff: New Stanford Research Offers Alternative to ITC Phase-Out Continued on page 22

PCCA Journal|2nd Quarter 2015 22 parity” yet, the researchers forecast a brighter future. Manufacturing costs for solar panels and installation costs have plummeted as the technology has matured in recent years. Projecting continued cost reductions to the end of 2016, the researchers found that solar is poised to make significant gains in cost-competitiveness across the entire sample. But those projections look different if the ITC were to drop to 10 percent. “Our prediction is that it doesn’t matter which state you take or which segment you look at; solar would be pretty much uncompetitive by early 2017 in virtually all of the applications,” Reichelstein said. Avoiding the Cliff A preferable strategy to dropping the solar tax credit from 30 percent to 10 percent and leaving it there in perpetuity, the researchers argue, would be to institute a more gradual phase-down starting in 2017. Comello and Reichelstein suggest that the government could drop the credit in smaller increments, first in 2017, a second time in 2021, and then eliminate it after 2025. Under their phase-down proposal, investors would be eligible for targeted tax credits, calculated either as lump-sum amounts or percentage-based tax credits that would be phased down from 30 percent to zero. “That 10 percent ITC is still a considerable incentive that should not be minimized in terms of impact,” Reichelstein said. “Under the current tax rules, the industry would take a significant hit in 2016, but then keep significant subsidies. Our thinking was, why do the sharp step down and then support the industry forever if it doesn’t need it forever?” Instead of falling off a cliff, the industry would instead have to weather a series of smaller shocks as it works through a critical developmental phase. The researchers’ findings suggest that the industry should be able sustain its momentum through those smaller shocks, leaving it poised to achieve true cost competitiveness by 2025. “By that time, if history is any guide, solar should be fully competitive with natural gas or other energy sources at least in favorable locations,” Reichelstein said. And the quid pro quo aspect could make the proposal an easier pill to swallow politically. Under the alternative proposal, taxpayers would be spending more in the immediate on solar, but they would no longer be supporting the industry Portable Fiber Optic Cable Placement THE GMP WHISPER MICRO CABLE BLOWING MACHINE 2 to 8.5 mm (.08 to .33 in.) microfiber cable O.D. Speeds up to 90 m/min (300 ft/min) into 4 to 18 mm (.15 to .63 in.) OD microduct — rollers are powered by a cordless drill (most types) Compact size and portable maneuverability for ease of handling Ideally suited for external or in-building cable placement +1.215.357.5500 • GMPtools.com MADE IN USA Powered by a cordless drill. (Drill not included) For Placing Pulling Lines or Fiber Optic Cables into New, Old or Crowded Conduits RAMROD TRAILER-MOUNTED POWERED DUCT ROD PUSHER For use with GMP’s 1/2 inch (13 mm) duct rods Push/pull up to 300 lbs. (136 kg) of load Moves at a rate of up to 130 ft./min. (330 cm/min.) Override capability – allows you to rod occupied ducts Includes hydraulic power pack Pusher is trailer-mounted for maneuverability +1.215.357.5500 • GMPtools.com MADE IN USA Avoiding the Solar Cliff Continued from page 21

PCCA Journal|2nd Quarter 2015 23 in perpetuity. “It has a little bit of the flavor of Saint Augustine’s prayer, ‘Lord, give me temperance and chastity, but not right now,’” he said. An Urgent Matter Although the cliff is nearly two years off, we should resolve the issue now, Reichelstein says. For one thing, it would help ensure the industry doesn’t mirror the wind industry, which suffered whiplash as incentives expired and were renewed at the last minute multiple times over the past decade, contributing to a “prolonged market contraction” in that industry. “The wind industry has really been at the whims of Congress,” Reichelstein said. “So putting solar on a long-term footing would be helpful for suppliers and consumers in the industry so they can plan farther out.” Otherwise, he said, “it’s very likely that running up to the end of 2016 we would see a boom followed by a bust with all the costs that come with such a cycle.” We already see evidence of this boom. Companies like SolarCity are hiring in droves. In fact, according to a report by the nonprofit research group the Solar Foundation, one of every 78 new jobs in 2014 was created by the solar industry. Further, it anticipates that the total employment by the industry will grow over 20 percent in 2015, to 210,060 workers. “You can see what would happen in 2017,” Reichelstein said. “Companies like SolarCity may be well-positioned because they are cost leaders. The way they have phrased it is, ‘We’re fighting the step-down, but we will survive.’ But not everybody will survive.” Greater Market Still, the U.S. is only one country that accounts for less than 10 percent of the global solar market, whereas China, which has historically dominated solar panel production, is quickly becoming a leading installer and consumer of solar power. “The good news to keep in mind is that irrespective of what happens here, the rest of world will continue to expand rapidly with solar deployments,” Reichelstein said. “The question is where that would leave the U.S. solar industry.” This piece was originally published by the Stanford Graduate School of Business.

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PCCA Journal|2nd Quarter 2015 25 On March 20, the U.S. Department of the Interior released final standards that it said will support safe and responsible hydraulic fracturing on public and American Indian lands. The agency said the standards “will improve safety and help protect groundwater by updating requirements for well-bore integrity, wastewater disposal, and public disclosure of chemicals.” The following is excerpted from an Interior Department press release on the new standards: There are more than 100,000 oil and gas wells on federally managed lands. Of wells currently being drilled, over 90 percent use hydraulic fracturing. The rule applies only to development on public and tribal lands and includes a process so that states and tribes may request variances from provisions for which they have an equal or more protective regulation in place. This will avoid duplication while enabling the development of more protective standards by state and tribal governments. Today’s final rule is a major step in the Department of the Interior’s agenda to support a balanced, prosperous energy future. Other reforms will also include important measures to target where oil and gas leasing occurs and protect sensitive areas that are too special to drill. “Current federal well-drilling regulations are more than 30 years old, and they simply have not kept pace with the technical complexities of today’s hydraulic fracturing operations,” Interior Secretary Sally Jewell said. “This updated and strengthened rule provides a framework of safeguards and disclosure protocols that will allow for the continued responsible development of our federal oil and gas resources. As we continue to offer millions of acres of public lands for conventional and renewable energy production, it is absolutely critical the public have confidence that transparent and effective safety and environmental protections are in place.” Key components of the rule, which will take effect in 90 days, include: • Provisions for ensuring the protection of groundwater supplies by requiring a validation of well integrity and strong cement barriers between the wellbore and water zones through which the wellbore passes; • Increased transparency by requiring companies to publicly disclose chemicals used in hydraulic fracturing to the Bureau of Land Management through the website FracFocus, within 30 days of completing fracturing operations; • Higher standards for interim storage of recovered waste fluids from hydraulic fracturing to mitigate risks to air, water, and wildlife; • Measures to lower the risk of crosswell contamination with chemicals and fluids used in the fracturing operation by requiring companies to submit more detailed information on the geology, depth, and location of preexisting wells to afford the BLM an opportunity to better evaluate and manage unique site characteristics. “This rule will protect public health and the environment during and after hydraulic fracturing operations at a modest cost while both respecting the work previously done by the industry, the states, and the tribes and promoting the adoption of more protective standards across the country,” said Assistant Secretary for Land and Minerals Management Janice Schneider. “It will be implemented in the most efficient way possible to avoid duplication or unnecessary activities by industry, other regulators, or BLM staff. We know how important it is to get this right.” The new rule is the culmination of four years of extensive public involvement to bring onshore oil and gas drilling regulations into the 21st century. The BLM published both a draft rule and a supplemental draft rule, held regional forums and numerous stakeholder meetings on the proposal, and reviewed more than 1.5 million public comments. BLM staff studied state and tribal regulations and consulted with state and tribal regulators, industry, environmental experts, and the public, including communities affected by oil and gas operations. In many instances, provisions in the new rule are similar to or based on existing state or tribal rules and industry best practices. The result of this careful consultation is a rule that will enhance environmental protection in a thoughtful and cost-effective way. BLM estimates the new rule will cost less than onefourth of 1 percent of the cost of drilling a well, based on the Energy Information Administration’s average per well cost of $5.4 million. The BLM oversees about 700 million subsurface acres of federal mineral estate and carries out regulatory duties of the Secretary of the Interior for an additional 56 million acres of Indian mineral estate across the United States. The Indian Mineral Leasing Act and other laws require that Indian lands and communities have the same protections as U.S. public lands. POWER NEWS Continued on page 26 Interior Department Releases Fracking Rule

PCCA Journal|2nd Quarter 2015 26 PG&E is supporting a new, public-private collaboration between the U.S. Department of Energy (DOE) and 16 other leading electric utilities from across the country. Announced on April 21 by Vice President Joe Biden, the Partnership for Energy Sector Climate Resilience will focus on improving the resilience of the nation’s energy infrastructure against extreme weather and climate change impacts. Biden’s announcement was made during an event to issue the administration’s Quadrennial Energy Review, which provides a future look at energy infrastructure, identifying the threats, risks, and opportunities for U.S. energy and climate security. Under the partnership, owners and operators of energy assets will develop and pursue strategies to reduce climate and weather-related vulnerabilities. “As a provider of energy to nearly 16 million Californians, PG&E understands our commitment to reduce our carbon footprint while building more resilient infrastructure that can withstand changing climate conditions. Doing so is integral to our ongoing efforts to provide safe, reliable, affordable, and clean energy,” said PG&E President Chris Johns. The partnership met on April 30 with U.S. DOE Secretary Dr. Ernest Moniz and senior executives from the 17 companies, including Pat Hogan, PG&E’s vice presiPower News Continued from page 25 Industry Speaks Out on New Fracking Rules Many congressional Republicans and several industry trade groups were a critical of the Interior Department’s newly released fracking regulations, which the American Petroleum Institute called “just one more barrier to growth.” API said the hydraulic fracturing rule imposes new costs and delays on energy development without improving on existing state and federal regulations. “Despite the renaissance on state and private lands, energy production on federal lands has fallen, and this rule is just one more barrier to growth,” said API Director of Upstream and Industry Operations Erik Milito. “Under the strong environmental stewardship of state regulators, hydraulic fracturing and horizontal drilling have opened up a new era of energy security, job growth, and economic strength. Increased production and use of natural gas has helped cut U.S. carbon emissions to a nearly 20-year low, and this decision only stands in the way of further progress, hampering natural gas development on federal lands onshore, where it has already declined an amazing 21.6 percent since 2009. “A duplicative layer of new federal regulation is unnecessary, and we urge the BLM to work carefully with the states to minimize costs and delays created by the new rule to ensure that public lands can still be a source of job creation and economic growth.” Many on Capitol Hill echoed API’s comments. “The combination of hydraulic fracturing and directional drilling is responsible for the unprecedented upswing in domestic oil and natural gas production during the past six years in the Lower 48,” GOP Sen. Lisa Murkowski of Alaska, chairwoman of the Senate Committee on Energy and Natural Resources, said in a statement. “U.S. oil production has more than doubled—to 9 million barrels a day—since 2008, but that increase has occurred almost exclusively on state and private lands as companies have avoided federal areas because of permitting delays and other roadblocks.” Even before the final rule was released, Senate Majority Leader Mitch McConnell, R-Ky., and Environment and Public Works Committee Chairman Sen. Jim Inhofe, R-Okla., introduced a bill that would block its implementation. The Fracturing Regulations are Effective in State Hands Act (S. 828) reads: “A State shall have the sole authority to promulgate or enforce any regulation, guidance, or permit requirement regarding the treatment of a well by the application of fluids under pressure to which propping agents may be added for the expressly designed purpose of initiating or propagating fractures in a target geologic formation in order to enhance production of oil, natural gas, or geothermal production activities on or under any land within the boundaries of the State.” Continued on page 28 PG&E Participates in New U.S. Climate Resilience Partnership

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PCCA Journal|2nd Quarter 2015 28 dent of electric operations asset management. The group shared best practices and discussed opportunities to work with the DOE on strategies for more climateresilient U.S. energy infrastructure. “California is feeling the impacts of extreme weather from severe storms to extended drought conditions, which is why our efforts are focused on building strong systems and testing our emergency preparedness to help get communities back on their feet quickly when a natural disaster occurs,” said Geisha Williams, executive vice president of electric operations for PG&E. ComEd Installs One Millionth Smart Meter ComEd announced in April that it had installed its one-millionth smart meter in its service territory. The mission of installing nearly four million smart meters began in 2013 and, on an accelerated timeline path, is expected to be complete in 2018—three years ahead of schedule. A smart meter is a digital electric meter that uses two-way radio communications to collect usage information and securely transmit it to ComEd through a wireless connection. “One million smart meters means one million customers now have access to tools and information that will help them better control and manage their energy use,” said Michael McMahan, Vice President of Automated Metering Infrastructure Implementation for ComEd. Smart meters provide customers with access to more information about energy use through online energy-management tools. Additionally, because smart meters automatically send meter readings to ComEd, they also help eliminate estimated bills and reduce operating costs that become savings on customers’ electric bills. Recently, ComEd reported out to the Illinois Commerce Commission for the first time on performance metrics for smart meters. The company reported that it had surpassed in 2014 targets in several categories including reduction of estimated bills, uncollected expenses, and consumption on inactive meters. The positive performance results help to lower operational costs, which are passed directly to customers as rate savings. In addition, smart grid investments have helped to strengthen reliability of the electric system by helping to avoid more than 3.3 million customer interruptions since 2012, including 1.2 million in 2014 due largely to increased investments in distribution automation or digital “smart switches” that automatically route power around potential problem areas. Outage avoidance has saved customers an estimated $175 million. Working with Silver Spring Networks, ComEd is building a wireless communications network that allows smart meters to communicate customer electricity usage with ComEd. Already, however, the company is looking for additional opportunities to use the communications network to bring new technologies and benefits to its service territory. Earlier this year, ComEd introduced a pilot program to deploy smart, energy-efficient LED streetlights in Lombard and Bensenville. Via a web portal, municipalities will be able to control the dimming and daily scheduling of the lights, and receive immediate notification if a lamp is in need of maintenance. Additionally, control can be given to first responders to manage streetlights on-demand during emergency situations. The LED streetlights, which consume as little as one-third of the energy, last up to one and a half times as long and offer better quality of light compared with the fixtures they replace. Power News Continued from page 26 High Levels of Transmission ,QYHVWPHQW %HQHÀW WKH *ULG DQG &XVWRPHUV An updated report by the Edison Electric Institute (EEI) finds that investor-owned electric utilities are continuing to make significant investments to build needed and beneficial transmission infrastructure and to enhance the nation’s electric power grid to meet 21st-century energy needs. The report, “Transmission Projects: At A Glance,” finds that EEI members’ total transmission investment in 2013 reached $16.9 billion. “The high level of investment in our nation’s transmission infrastructure

PCCA Journal|2nd Quarter 2015 29 improves reliability and benefits customers by enabling utilities to deploy new technologies, such as advanced monitoring systems, that help to make the grid more flexible and more resilient,” said EEI Vice President of Energy Delivery Jim Fama. “These investments also relieve transmission congestion, facilitate wholesale market competition, and support a diverse and changing generation portfolio that includes more renewable resources, such as wind and solar power.” The report highlights a cross-section of more than 170 major transmission projects that EEI member companies completed in 2014 or have planned over the next 10 years. These featured projects, which represent only a portion of the total transmission investment that EEI’s members anticipate through 2025, total approximately $47.9 billion. The report further shows that of the transmission projects featured and the investments planned, $19.2 billion (40 percent) is for large, interstate transmission projects spanning multiple states; $22.1 billion (46 percent) is for projects that support the integration of renewable resources; $17.4 billion (36 percent) is for projects where EEI member companies are collaborating with other utilities, including non-EEI members, to develop the project; and $31.5 billion (66 percent) is for high-voltage projects of 345 kilovolts and above. Because transmission projects are developed to address an array of needs and deliver a number of benefits, one project may fall into more than one category. “Developing transmission has risks and challenges. In order to continue to attract the levels of capital needed to develop transmission projects and to continue to deploy advanced technologies, it is critically important that the Federal Energy Regulatory Commission continue to provide returns on investment that are commensurate with the level of risk,” Fama said. EEI is the association that represents all U.S. investor-owned electric companies. Its members provide electricity for 220 million Americans, operate in all 50 states and the District of Columbia, and directly employ more than 500,000 workers. s 0ERFECT FOR &44( !PPLICATIONS s 2EDUCE 0EDESTALS AND "OXES s $ROPS $IRECTLY TO THE (OUSE s %ASY 4ECHNOLOGY 5PGRADES s %MPTY 0ATHWAYS !VAILABLE FOR &UTURE 'ROWTH ,EARN ABOUT THE ENTIRE &UTURE0ATH &AMILY OF 0RODUCTS AT &UTURE0ATH 7AY WWW DURALINE COM 11400 Parkside Dr., Suite 300 Knoxville, TN 37934 800.847.7661 4HE "EST 7AY TO 'ET (OME

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PCCA Journal|2nd Quarter 2015 31 TELECOM NEWS Continued on page 32 Study Finds Wireless Connections Complement Rather Than Replace Wireline Networks Wireless technologies are a complement to wireline broadband technologies rather than a replacement for them, according to a technical report issued in April by telecommunications engineering and consulting firm Vantage Point Solutions at the NTCA—The Rural Broadband Association’s Rural Telecom Industry Meeting & EXPO in Phoenix, Ariz. The study, “Wireless Broadband Not a Viable Substitute for Wireline Broadband,” reviews terrestrial wireless technologies’ ability to deliver current and future broadband services. Vantage Point studied various broadband delivery networks and the characteristics of a high quality broadband connection and found that there are several factors, including lack of spectrum, weather, and terrain, which limit a wireless network’s broadband quality but do not affect wireline broadband networks. Among the report’s key findings are: Spectrum: Spectrum is a limited resource and expensive for a wireless carrier to secure. The limited amount of available spectrum can significantly constrain broadband speed. When additional spectrum is not available, a broadband provider must add towers to increase capacity, which increases deployment cost and only underscores the ultimate dependence of wireless services on wireline technologies. Speed: An important determinant of connection speed is the proximity of the customer to the tower. In rural areas, customers may live longer distances from the closest tower, which frequently are spaced 10 to 20 miles apart. At this distance, service may be extremely slow or nonexistent. Environmental impacts: Mountains, hills, buildings, and trees can interfere with a wireless signal. Rain, fog, or snow can also reduce broadband speeds and even cause network outages. All of these factors are common in rural areas. “While wireless networks are needed for low bit rate mobile applications, such as voice, email and small screen video, wireline networks are required to meet customers’ high-speed, fixed broadband needs,” said Larry Thompson, P.E., Vantage Point Solutions’ chief executive officer and the report’s chief author. “Even fixed wireless solutions that offer near-term promise for reaching consumers face the prospect of being unable to keep up with consumer demand over the longer term. With the rapid increases in broadband demand, it is important and most efficient to invest in networks and technologies that can not only deliver the broadband required today, but also deliver the broadband of tomorrow without major upgrade expenditures.” Survey Reveals Operators’ Ambitious Upgrade Plans Infonetics Research, a technology market research firm, released excerpts from its latest broadband study, “VDSL, G.Fast, and Next-Gen FTTH Strategies and Vendor Leadership Survey.” Infonetics provides insights into the fixed broadband deployment plans of and technologies utilized by global broadband operators, as well as their thoughts on leading broadband equipment vendors. “For many service providers, growth in broadband revenue has more than offset the losses from declining voice services. Fixed broadband services, driven in part by the growth in online video services, have some of the highest margins of any services. Thus, service providers continue to invest strategically in their fixed broadband networks to increase speeds offered to residential and business customers and to increase the number of additional services they can offer, including multiscreen video, home automation, and home security,” said Jeff Henyen, principal analyst for broadband access and pay TV at Infonetics Research. The survey found that the percentage of service providers planning to offer an average bandwidth speed of 1 Gigabit (1G) to residential subscribers grows from 15 percent in 2015 to 40 percent

PCCA Journal|2nd Quarter 2015 32 Telecom News Continued from page 31 by 2017. It also found that 66 percent of subscribers currently access respondents’ broadband networks using copper technologies, while 35 percent gain entry via fiber; both percentages will move in opposite directions this year. Citing cost of deployment as a factor, half of respondents either have no plans to deploy or are unsure if they will deploy FTTdp and/or G.fast technologies. More information is available at www. infonetics.com. U.S. Business Fiber Penetration Hits 42.5 Percent Business fiber penetration of commercial buildings in the U.S. increased to 42.5 percent in 2014, according to latest research from Vertical Systems Group. This compares to a penetration rate of only 10.9 percent in 2004. These statistics measure fiber availability at company-owned and multi-tenant buildings with 20 or more employees, which covers more than twomillion individual business establishments. “Accessibility to fiber-based business services in the U.S. nearly quadrupled between 2004 and 2014, with hundreds of thousands of sites newly fiber-connected during this time period. As a result of this growth, our fiber penetration benchmark now exceeds 40 percent for the first time,” said Rosemary Cochran, principal at Vertical Systems Group. “Looking forward, the high stakes endgame for network operators is to deepen and broaden their service infrastructures around fiber—the future of wireline.” In the U.S., fiber is used to deliver the majority of Carrier Ethernet service connections. Fiber implementations are also increasing for access to high-speed IP/MPLS VPN services, cloud and internet connectivity, and mobile backhaul applications. More information is available at www.verticalsystems.com. FACTORY SALES EK250 SHORT MAST 0-7661 (912) 200 | CZM-US.com | 141 East Industrial Blvd | Pembroke, GA 31321

PCCA Journal|2nd Quarter 2015 33 NTIA Announces Second Phase of FirstNet Implementation Funding The U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA) announced in April that it will be releasing the second phase of previously awarded grant funding for states and territories to begin collecting data necessary to plan for the nationwide public safety broadband network being developed by the First Responder Network Authority (FirstNet). The Middle Class Tax Relief and Job Creation Act of 2012 authorized the creation of FirstNet, which is developing a nationwide network to enable first responders to better communicate and save lives. The law also directed NTIA to develop a grant program, the State and Local Implementation Grant Program (SLIGP), to assist states and territories in planning, education, and outreach as they consult with FirstNet on the deployment of the broadband network. In 2013, NTIA awarded grants to 54 states and territories. The first phase of funding, totaling about $58 million, has helped states conduct outreach with public safety and state and local officials to determine their needs, gaps, and priorities for public safety wireless broadband and to prepare for formal consultations with FirstNet, which is an independent authority within NTIA. This second phase of SLIGP funding ($58 million) will allow states to collect data identifying and prioritizing where public safety broadband coverage is needed, identifying potential users and their capacity needs, and detailing current providers and procurement mechanisms. “So far, states and territories are making good progress planning for FirstNet,” said Assistant Secretary of Commerce for Communications and Information and NTIA Administrator Lawrence E. Strickling. “This second phase of funding will help states and territories ensure the network meets their most pressing needs for coverage.” 1.800.263.1060 www.rwfbron.com BRON is a registered trade mark of RWF Industries a division of Roberts Welding & Fabricating Ltd. ((&, 6 BRON Add-On Utility Plows are the most cost-effective method for installation of fiber optic, copper cable, conduit and pipe. Available as static or vibratory, there is a BRON Add-On Utility Plow that’s right for you. STATIC VIBRATORY UP TO 72” DEPTH Continued on page 34

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