- 21 - incremental base rate could be adjusted to reflect variations in conduit material costs. For example, Qwest adjusted its incremental base rate for the MCI Denver-El Paso conduit project from $6,019 to $6,500 per conduit mile due to an increase in conduit material costs from $2,376 to $2,856 per mile.13 The incremental base rate did not include the cost of digging the trench or the costs associated with perfecting the rights-of-way because these costs would have been incurred when installing the conduit for the third-party customer regardless of whether Qwest chose to install additional conduit. The incremental base rate did not include adjustments based on terrain and was not increased as a result of budget overruns. Using the incremental base rate, with appropriate adjustments, Qwest determined the incremental costs per conduit mile of conduits retained by Qwest were: Incremental cost Project per conduit mile MCI San Jose-Reno-Wells $8,129 MCI Salt Lake City-Denver 7,629 MFS Los Angeles 6,019 MFS Dallas 6,019 Viacom San Francisco Bay 6,019 MCI Denver-El Paso 6,500 MCI Kansas City-St. Louis 5,999 US West Phoenix-Mesa 5,066 MCImetro Dallas 5,417 US West Grants-Gallup 6,806 MFS Anaheim 6,584 13 The $1 discrepancy is due to rounding.Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Next
Last modified: May 25, 2011