Section R14-2-606. Collection main extension agreements

A.      General requirements

1.        Each utility entering into a main extension agreement shall comply with the provisions of this rule, which spe- cifically defines the conditions governing collection main extensions.

2.        Upon request by a potential applicant for a collection main extension, the utility shall prepare, without charge, a preliminary sketch and rough estimate of the cost of installation to be paid by said applicant.

3.        Any applicant for a collection main extension requesting the utility to prepare detailed plans, specifications, or cost estimates may be required to deposit with the utility an amount equal to the estimated cost of preparation. The utility shall, upon request, make available within 90 days after receipt of the deposit referred to above, such plans, specifications, or cost estimates of the proposed collec- tion main  extension. Where  the  applicant accepts  the plans and the utility proceeds with construction of the extension, the deposit shall be credited to the cost of con- struction; otherwise the deposit shall be nonrefundable. If the extension is to include oversizing of facilities to be done at the utility’s expense, appropriate details shall be set forth in the plans, specifications and cost estimates.

4.        Where the utility requires an applicant to advance funds for a collection main extension, the utility shall furnish the applicant with a copy of the extension tariff of the

Corporation Commission – Fixed Utilities

appropriate utility prior to the applicant’s acceptance of the utility’s extension agreement.

5.        All collection main extension agreements requiring pay- ment by the applicant shall be in writing and signed by each party before the utility commences construction.

6.        In the event the utility’s actual cost of construction is dif- ferent from the amount advanced by the customer, the utility shall make a refund to or collect additional funds from, the applicant within 120 days after the completion of the construction.

7.        The provisions of this rule apply only to those applicants who in the utility’s judgment will be permanent custom- ers of the utility. Applications for temporary service shall be governed by the Commission’s rules concerning tem- porary service applications.

B.       Minimum written agreement requirements

1.        Each collection main extension agreement shall, at a min- imum, include the following information:

a.         Name and address of applicant(s)

b.        Proposed service address or location

c.         Description of requested service

d.        Description and sketch of the requested main exten- sion

e.         A cost estimate to include materials, labor, and other costs as necessary

f.         Payment terms

g.        A clear and concise explanation of any refunding provisions, if appropriate

h.        The utility’s estimated start date and completion date for construction of the collection main extension

2.        Each applicant shall be provided with a copy of the writ- ten collection main extension agreement.

C.      Main extension requirements. Each main extension tariff shall include the following provisions:

1.        A maximum footage and/or equipment allowance to be provided by the utility at no charge. The maximum foot- age and/or equipment allowance may be differentiated by customer class.

2.        An economic feasibility analysis for those main exten- sions which exceed the maximum footage and/or equip- ment allowance. Such economic feasibility analysis shall consider the incremental revenues and cost associated with the main extension. In those instances where the requested main extension does not meet the economic feasibility criteria established by the utility, the utility may require the customer to provide funds to the utility, which will make the main extension economically feasi- ble. The methodology employed by the utility in deter- mining economic feasibility shall be applied uniformly and consistently to each applicant requiring a main exten- sion.

3.        The timing and methodology by which the utility will refund any advances in aid of construction as additional customers are served off the main extension. The cus- tomer may request an annual survey to determine if addi- tional customers have been connected to and are using service from the main extension. In no case shall the amount of the refund exceed the amount originally advanced.

4.        All advances in aid of construction shall be noninterest bearing.

5.        If after five years from the utility’s receipt of the advance, the advance has not been totally refunded, the advance shall be considered a contribution in aid of construction and shall no longer be refundable.

D.      Residential subdivision development and permanent mobile home parks. Each utility shall submit as a part of its main extension tariff separate provisions for residential subdivision developments and permanent mobile home parks.

E.       Ownership of facilities. Any facilities installed hereunder shall be the sole property of the utility.

Historical Note

Adopted effective March 2, 1982 (Supp. 82-2). Amended to correct subsection numbering (Supp. 99-4).