 Section 5 - Line Extensions 5-A.1 INTRODUCTION and APPLICABILITY
5-A DEFINITIONS The terms provided herein are in addition to the terms provided in Chapter 395 of the Maine Public Utilities Commission’s Rules and Regulations. Where a conflict in definition may arise, Chapter 395 will rule. AVERAGE COST. For the purpose of this Section: (a) for a Single Phase Line Extension, $7.02 per foot plus the per foot cost of Trim and Ledge; or (b) for a Polyphase Line Extension, $13.44 per foot plus the per foot
cost of Trim and Ledge In determining the per-foot cost of Trim and Ledge, the cost of Trim and Ledge will be averaged over the entire length of the Line Extension. The Company shall maintain records for the
approved Average Cost of Line Extensions for each year in order to facilitate the transfer of ownership of
Privately-Owned Line Extensions in accordance with Section 5(E.1)(4) of these Terms and Conditions. CONTRIBUTION IN AID OF CONSTRUCTION (CIAC): (a) A cash contribution by the Customer or Developer, that is taxed as income to the Company, paid in advance of the commencement of construction, for the purpose of partially or wholly reimbursing the Company for the cost of providing Line Extension facilities including but not limited to the following: engineering costs, construction costs, transportation costs, materials costs, costs to Upgrade the Existing Distribution System, Ledge, Trim, costs to acquire joint ownership interest, and easement and permit costs. For the purpose of this definition, CIAC applies only to costs associated with Line Extensions constructed by the Company or to easement, permit, and Compliance Costs for Privately-Owned Line Extensions incurred in order to facilitate the transfer of ownership of the Privately-Owned Line Extension to the Company, and not to cash contributions made to the Company for construction of Privately-Owned Line Extensions, payments received for maintenance and repair costs, reallocation of costs among customers, private line inspection fees, or relocation of private facilities due to state, municipal, or other requirements; or (b) a contribution by the Customer or Developer of facilities, that is taxed as income to the Company, calculated as set forth in Chapter 395 § 7(E)(1). ADVANCE PAYMENT FOR SPECIALIZED MATERIALS AND EQUIPMENT. A nonrefundable advance payment required to cover the cost of specialized materials or equipment purchased or leased by the Company specifically to serve the Customer or Developer; provided, however, that in the event of cancellation by the Customer or Developer, the Company shall refund any amount in excess of the amount recovered by the Company, if any, from the sale or return of the equipment. DEVELOPMENT POLICY. The Line Extension policy applicable to any extension of the Company's Single Phase Overhead, Polyphase Overhead, or Underground Distribution facilities prior to the time that a Permanent Customer contracts for service that is to be provided by means of the new extension. LEDGE. The removal of rock, as needed, from the specific location of the proposed Line Extension. Customer charges for Ledge are based on an estimated cost. Funds collected from a Customer in excess of actual costs are returned to the Customer within 60 days of completion of the Customer's Line Extension. PERMANENT CUSTOMER. For purposes of this Section, an individual or entity that contracts with the Company for electric service to an installation of a permanent nature which is located on property owned by the customer. Customers who meet the property ownership condition may qualify as Permanent Customers by signifying their intent to construct a permanent service installation within six months of the date of contracting for service. Customers can satisfy the property ownership condition by showing evidence of interest in the property by virtue of a lease or other sufficient legal interest with duration of at least ten years. Installations of mobile homes will be considered permanent in nature provided they are installed on the customer's property and have independent or publicly supplied water and sewage connections, or are installed within the confines of a mobile home park. POLYPHASE OVERHEAD DISTRIBUTION. Poles, wires, and fixtures associated with the provision of primary voltage polyphase service at the Company's standard voltages up to and including voltage levels of 34,500 volts. SINGLE PHASE OVERHEAD DISTRIBUTION. Poles, wires, and fixtures associated with the provision of primary voltage single phase service at the Company's standard voltages up to and including voltage levels of 19,900 volts. STANDARD POLICY. The Line Extension policy applicable to any Permanent Customer requiring the extension of the Company's Single Phase Overhead, Polyphase Overhead, or Underground Distribution facilities. TRIM. Removal or trimming of vegetation, including trees where necessary, from the specific location of the proposed Line Extension in order (1) to facilitate construction of the line, and (2) to ensure that the new line, when constructed, will have adequate clearances, consistent with the Company’s Standards. Customer charges for Trim are based on an estimated cost. Funds collected from a Customer in excess of actual costs are returned to the Customer within 60 days of completion of the Customer's Line Extension. UNDERGROUND DISTRIBUTION. Cables, Conduits, and fixtures installed below the surface of the earth and associated with the provision of Single Phase service (up to and including voltage levels of 19,900 volts) or Polyphase service (up to and including voltage levels of 34,500), exclusive of any required excavation, trenching, and foundations. 5-B STANDARD POLICY OVERHEAD DISTRIBUTION FACILITIES. This policy applies to one or more Permanent Customers requiring the extension of Single Phase or Polyphase Overhead Distribution facilities on or along a roadway where permits and/or suitable right-of-way easements are available at no out-of-pocket costs to the Company (and to any Permanent Customer who agrees to reimburse the Company for out-of-pocket cost by providing a Contribution In Aid Of Construction); and where Standard Construction is possible. Under this policy, the Company will extend its Single Phase or Polyphase Overhead Distribution facilities a distance of: (1) up to 2000 feet per customer subject to the payment of monthly charges as follows:
(2) greater than 2000 feet per Customer, subject to the payment of:
5-C STANDARD PLAN UNDERGROUND DISTRIBUTION FACILITIES. This policy applies to any Permanent Customer who desires Underground Distribution on or along a roadway where permits or suitable right-of-way easements are available at no out-of-pocket cost to the Company (and to any Permanent Customer who agrees to reimburse the Company for out-of- pocket costs by providing a Contribution In Aid Of Construction), and where the construction would normally be in the form of Single Phase or Polyphase Overhead Distribution facilities. Under the terms of this policy, the Company will extend its Underground Distribution facilities on the same basis as that set forth in Section 5B, except that the Company will require an additional Contribution in Aid of Construction in the amount of the Extra Underground Cost, plus the Tax Effect. By way of example, if a Customer requests a 4,000 foot Underground Distribution Line Extension, the Customer will make (1) monthly payments based on the Average Cost (no Trim or Ledge) of the first 2,000 feet of comparable Line Extension, (2) a Contribution in Aid of Construction equal to the Average Cost (no Trim or Ledge) of 2,000 feet of comparable Line Extension for the remaining 2,000 feet, plus (3) a Contribution in Aid of Construction equal to the Extra Underground Cost. 5-D DEVELOPMENT POLICY FOR OVERHEAD AND UNDERGROUND DISTRIBUTION FACILITIES. This policy applies to any extension of the Company's Single Phase Overhead, Polyphase Overhead, or Underground Distribution facilities along suitable roadways (where permits or right-of-way easements are available to at no out-of-pocket cost to the Company or where the developer agrees to reimburse the Company for out-of-pocket costs by providing a nonrefundable Contribution In Aid Of Construction) prior to the time that a Permanent Customer contracts for service to be delivered by means of the new extension. Under this policy, the Company will extend its distribution facilities an unlimited distance subject to the payment, on a nonrefundable basis, of: (1) a Contribution In Aid Of Construction equal to:
(2) a cash payment sufficient to reimburse the Company for the Tax Effect. Under no circumstances will all or any portion of a Contribution in Aid of Construction paid pursuant to this Section be subject to refund. 5-D.1 DEVELOPMENT EXTENSIONS CONNECTED TO EXISTING LINE EXTENSIONS For the purposes of reallocation to Customers taking service from existing Line Extensions, the Company will allocate costs based on the number of lots or self-contained living units identified within the Development by a site plan or other documentation. Each Customer will be counted on the basis of distinct self-contained living units. A multiple unit dwelling shall be considered based on the number of units within the building without regard to ownership. 5-D.2 DEVELOPMENT AGREEMENT The Developer causing a Line Extension to be built must execute a written agreement with the Company. The agreement will be filed at the appropriate registry of deeds. A copy of the agreement is available on the Company’s website at www.bhe.com. 5-D.3 PRIVATELY CONSTRUCTED DEVELOPMENT EXTENSIONS The Developer construction its own Line Extension shall be subject to the Terms and Conditions of Section 5-E relating to privately constructed Line Extension in addition to the applicable Terms and Conditions of this section. 5-D.4 ENERGIZATION OF DEVELOPMENT LINE EXTENSION The ownership of a Line Extension constructed to serve a Development must be transferred to the utility prior to energization of the line in accordance with Chapter 395 §(7)(A). 5-E GENERAL PROVISIONS (1) Calculation Of Contributions In Aid Of Construction Inclusive Of Tax Effect by New Customers Taking Service from a Line Extension New Customers connecting to a Line Extension (other than a Line Extension constructed under the Company’s Standard Development Policy as set forth in Section 5D or any predecessor provision) that was placed in service within twenty (20) years of the new Customer’s connection date will be required to pay a portion of the original Contribution In Aid of Construction and Tax Effect and Upgrade Costs as determined by Chapter 395 § 9(D)(1)(b) unless the Customer responsibility amount for the Customer(s) who initially paid for the Line Extension falls below $100.
(2) Allocation Of Monthly Charges And Contributions In Aid Of Construction Among Customers On A Line Extension In General Monthly charges and/or Contributions in Aid of Construction will be apportioned among Customers as determined in accordance with Chapter 395, § 9(D). In this determination, Trim and Ledge costs will be averaged over the entire distance of the Line Extension. (3) (4) (5) Transfer Of Payment Obligation And Contribution In Aid Of Construction Whenever a person or other entity requests to become a Customer at a location or premise where (1) service has been provided to a prior Customer under the terms of the Standard Policy for Line Extensions, and (2) the term of the prior Customer’s Line Extension agreement has not expired, that person or other entity shall be required to enter into a new agreement requiring the payment of monthly charges for the balance of the unexpired term of the prior agreement. The new Customers shall not be responsible for any past due amounts owed by the prior Customer. In addition, any Contribution In Aid of Construction received in accordance with the terms of the Standard Policy shall be transferred to the new Customer including the right to be eligible for any future refund(s) pursuant to the terms of this Section. (6) (7) (8) Calculation of Refunds for Customers on Monthly Charges By way of examples: A Customer on monthly surcharges on a 1000’ line extension that was built in June of 2000 is being assessed a monthly surcharge of 6.4 cents times 1000’ for a payment of $64.00 per month. The Carrying Charge in effect at the time the monthly surcharge arrangement was entered into was 8.390%. The Customer’s initial balance was 1000’ times $3.90 times 1.33 (Tax Effect) or $5,187.00. If an additional Customer attaches to the line extension in June of 2009 at the same location on the line extension as the original Customer, that new Customer’s share will be half of the original cost of the line extension or $2,593.50. The Company will collect $2,593.50 from the new customer and apply it to the original Customer’s balance. The original Customer has made 108 payments of $64.00 and his remaining balance is $735.35. The balance will be fully credited and the Company will return a check to the original Customer in an amount of $1858.15. A Customer on monthly surcharges on a 1000’ line extension that was built in June of 2006 is being assessed a monthly surcharge of 6.4 cents times 1000’ for a payment of $64.00 per month. The Carrying Charge in effect at the time the monthly surcharge arrangement was entered into was 8.390%. The Customer’s initial balance was 1000’ times $3.90 times 1.33 or $5,187.00. If an additional Customer attaches to the line extension in June of 2009 at the same location on the line extension as the original Customer, that new Customer’s share will be half the original cost of the line extension or $2,593.50. The Company will collect $2,593.50 from the new Customer and apply it to the original Customer’s balance. The original Customer has made 36 payments of $64.00 and his remaining balance is $4056.14. The balance will be credited an amount of $2,593.50 and the Customer’s monthly surcharge payments will be reduced to $23.09 for the remaining term of the monthly surcharge arrangement. (9) Refunds Of Contributions In Aid Of Construction, Development Policy Any Contribution In Aid Of Construction that reimbursed the Company for Single Phase or Polyphase Overhead Distribution facilities pursuant to Section 5D shall not be subject to refund as provided in Chapter 395 §9(A). (10) Alternatives To The Payment Of Monthly Charges
(11) (12) (13) Outstanding Line Extension Quotations Formal quotations for Line Extensions made by the Company prior to the effective date of this page of this tariff and not contracted for by the date ninety (90) days later are void. (14) Security Deposit The Company may require security deposits from customers making monthly charge payments pursuant to Section 5C in accordance with Chapters 81, 86 and 870 of the Commission's Rules. Such deposits may be based upon the monthly charge payments for the construction of a Line Extension made pursuant to Section 5C. (15) Applicability Of Late Payment Charge A late payment charge in accordance with Section 4F shall apply to the bills of customers obligated to make monthly surcharge payments under the terms of this Section. (16) Requirement For Contracts Customers who desire to receive service from a Line Extension for which the payment of monthly charges is required must enter into a contract of a form prescribed by the Company which sets forth the obligations of the parties. The Company will record the agreement at the appropriate Registry of Deeds. At such time as a Customer’s obligations under a Line Extension agreement recorded by the Company have been discharged in full, such that the Customer no longer owes any amounts under the agreement, the Company shall record a discharge at the Registry of Deeds where the agreement has been recorded providing notice that the Customer has discharged the obligations of the agreement. (17) Payments to Cover Transformation Costs (18) Utility Line Construction Standards (Standards) All Line Extensions shall be constructed and maintained in accordance with the National Electric Safety Code and the Company’s Utility Line Construction Standards as approved by the MPUC, which are incorporated into these Terms and Conditions by reference. Copies of the Standards are available at the Company’s offices at 21 Telcom Drive, Bangor, Maine 04401 and on the Company’s website at www.bhe.com. Paper copies of the Standards will be provided for a copying fee of $100.00 in accordance with Chapter 395 §3(F)(3). (19) Alternate Materials The Company shall have the right to specify or approve material or equipment other than that specified in the Standards if other such material or equipment is of equal or better quality than that specified in the Company’s Standards. Any person wishing to use any material or equipment other than that specified in the Company’s Standards should contact the Company’s engineering department by telephone at 1-800-248-2258. 5-E.1 Privately-Owned Line Extensions. This policy applies to the ownership, connection, and maintenance of Single Phase or Polyphase Overhead or Underground Privately-Owned and/or constructed distribution facilities connected to the Company’s distribution system. Under this policy, the Company will connect its Single Phase or Polyphase distributionfacilities to the Customer’s Privately-Owned Line Extension under the following conditions:
(2) Material List. The owner of the Privately-Owned Line Extension shall provide the Company with a materials list or other documentation, in a form satisfactory to the Company, demonstrating that all materials in the Line Extension conform to the Company’s Standards. The list will include the following information: Item, description, quantity, manufacturer, and style or catalogue number. (3) Recordable Private Line Agreement. The owner of the Privately-Owned Line Extension must execute a written agreement with the Company of a form approved by the MPUC. The agreement will be filed at the appropriate registry of deeds. The agreement will be a covenant running with the property. A copy of theagreement is available on the Company’s website at www.bhe.com . (4) Transfer of Ownership of Privately-Owned Line Extensions and Calculation of Tax Effect. The following method will be used for determining the value and resulting Tax Effect of a Privately-Owned Line Extension contributed to the Company;
(5) Transfer of Ownership Requirement. The Customer shall transfer ownership of any Privately-Owned Line extension to the Company where that transfer is required by Chapter 395 §7. Private ownership of any Line Extension is permitted under the circumstances described in Chapter 395 § 6(B). (6) Cost of Obligation of Owner. The Owner of the Privately-Owned Line Extension is responsible for
payment of a portion the Tax Effect incurred by the Company as a result of any CIAC allocated amongst the transferring Owner and new Customers pursuant to the Customer shares established in Chapter 395, § (9)(D).
(9) Warranty of Privately Constructed Underground Line Extensions. In cases where the ownership of an Underground Line Extension constructed by a Private Line Extension Contractor is transferred to the Company prior to energizing the Line Extension, the transfer shall be deemed to include a warranty to the Company by the Transferor that the Underground Line Extension and all associated facilities are, and shall remain, free from all defects in materials and workmanship for one year from the date the Line Extension is first energized. The Transferor of the Line Extension shall pay the Company all costs incurred for repairs resulting from failure, within the one-year period, of the Line Extension to perform its intended function as a result of electrical or mechanical failure attributable to defects in materials or workmanship, including, without limitation, the cost of uncovering and recovering the underground facilities. 5-F TEMPORARY INSTALLATIONS. Temporary service is service to a Customer, which is not likely tocontinue for a sufficient period of time to warrant consideration under the terms of the Standard Policy or the Development Policy. Such service shall be subject to the payment of all costs incurred in the installation and subsequent removal of the distribution facilities, considering the value of any nonsalvageable materials. Service rendered during the construction of a permanent facility shall not be subject to this provision provided that the distribution facilities installed to provide the construction service are utilized to provide service to the permanent facility. 5-G STREET AND AREA LIGHTING. For Street and Area lighting, the Company will furnish, install and maintain the lighting fixtures (except as otherwise noted in the rate) with sufficient conductors to connect the same if the light is to be installed on existing company facilities. Otherwise, the customer shall be required to furnish, install and maintain any necessary supply lines or supporting structures. In the event that a customer requests the disconnection of existing street or area lighting equipment (exclusive of disconnection associated with periodic service), the Customer shall reimburse the Company for its remaining undepreciated value, less any salvage value, plus the cost of its removal. The undepreciated value of such equipment shall be based upon the average undepreciated value of all street or area lighting equipment of same size and type as shown on the Company's regulated books of account at the time such request is made. Except as noted below, payment to the Company for such removals shall be made in advance. At the option of the Customer, that portion of the amount to be paid which represents the undepreciated value, less any salvage value of the equipment to be removed, may be paid, in approximately equal monthly installments, over a period of up to 36 months, with an allowance to the Company on the unpaid balance for the Company's capital costs equal to the overall costs of capital of the Company approved by the Commission in the Company's most recent rate proceeding, adjusted to account for income taxes on the equity portion of such cost of capital. 5-H SPECIAL CONSTRUCTION OR FACILITIES. Whenever a Customer requests service that would necessitate the construction of Single Phase, Polyphase, or Underground Distribution that is outside the scope of the definition of Standard Construction; requires service at other than standard voltages; or requires service at closer voltage regulation than required by standard practice, the Customer will be required to pay (in addition to meeting the terms of the Standard Policy) a Contribution In Aid Of Construction equal to the difference in cost between the comparable Standard Construction or standard facilities and those actually provided, plus an additional payment sufficient to reimburse the Company for the Tax Effect, which Contribution In Aid Of Construction and the Tax Effect thereof shall be nonrefundable. Whenever a Customer requests service that would require the reconstruction of existing Single Phase or Polyphase (as opposed to the construction of new facilities), the amount of any monthly charges and the Contribution In Aid Of Construction, if any, shall be calculated from the actual cost of the reconstruction rather than from Average Cost. Under such circumstances the Company will finance for each additional service an amount equal to 2000 times Average Cost without benefit of a Contribution In Aid Of Construction. When no additional services are involved (i.e., the Customer converts his/her Single Phase loads to Polyphase loads), the Company will finance an amount equal to 2000 times the difference in Average Cost between Single Phase and Polyphase construction without benefit of a Contribution In Aid Of Construction. Monthly surcharges shall be equal to 0.0193 times or (1.93%) of the amount of the Company's investment. Whenever a Contribution In Aid Of Construction is required, an additional Payment sufficient to reimburse the Company for the Tax Effect thereof will also be required. 5-I HIGH CAPACITY LINE EXTENSIONS. Whenever a Customer requests service that due to the nature, size or character of the proposed load would necessitate the construction of facilities that are outside the scope of the Standard Policy or the Development Policy, the Company will provide service under the terms of a proposal that considers the unique requirements of the Customer and that may include revenue guarantees, monthly charges, and a Contribution In Aid Of Construction (plus a payment sufficient to reimburse the Company for the Tax Effect). The proposal will be designed to assure a fair rate of return on the investment required to make service available including, but not limited to, the cost of reconstruction of existing lines, the construction of additional lines, the installation of substation and metering equipment and the demand to be placed on the generation and transmission capacity of the system. In developing its proposal, the Company shall consider the benefits to other customers of any system improvements that would be made in the course of providing the proposed service. 5-J RECONSTRUCTION OF SINGLE PHASE TO POLYPHASE. When a Customer requests service that would require the reconstruction of existing Single Phase or Polyphase lines consisting of two phases (as opposed to the construction of new facilities), to Polyphase consisting of three phases, the portion of the Line Extension that constitutes reconstruction will be considered a Polyphase Line Extension for the purposes of reallocation among future Polyphase Customers only. If the previously existing Single Phase line is a Line Extension, all new Single Phase and Polyphase Customers shall be responsible for a portion of the Single Phase costs pursuant to Chapter 395 § (9)(D)(2)(b). The Polyphase customer will be responsible for all additional Line Extension costs including any Tax Effect pursuant to Chapter 395 and these Terms and Conditions. 5-K OBLIGATIONS OF ADDITIONAL CUSTOMERS. Additional Customer or Customers taking service from an existing Company-Owned Line Extension or Privately-Owned Line Extension are subject to all cost obligations as set forth in Chapter 395, Sections 7 and 9 except that no reallocation payments shall be made if the amount for reimbursement to the Customer or Customers who initially paid for the Line Extension (or the Customer or Customers at the location of the Customer or Customers who initially paid for the Line Extension) is less than $100.00. 5-L SINGLE PHASE CUSTOMER SERVED FROM POLYPHASE LINE EXTENSION. Where a single-phase Customer connects to a Polyphase Line Extension, the costs for that Single Phase Customer, for the purpose of Chapter 395 § (9)(D)(2)(b) shall be the costs of construction of a Single Phase Line Extension calculated based on the Average Costs for Single Phase for the year in which the Line Extension was built, multiplied by the number of feet of the Line Extension. Where a single-phase Customer connects to a Polyphase Line Extension, the Customer’s responsibility for the Tax Effect shall be calculated based on the Single Phase Line Extension when the Customer has caused a Contribution of Facilities to occur. Return to Terms and Conditions Index Effective
Date: May 1, 2007 |
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