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Line Extension Services

Contribution-in-Aid-of-Construction of Service Relocation

Upon written application of the owner of any property, the owner’s agent, the occupant with the consent of the owner or other person authorized to make such application (such requesting persons are included in the term Customer), and approval by the Company, the Company shall relocate such primary and secondary service as is necessary in accordance with the General Job Specifications and General Terms and Conditions to render the service requested. The total cost of providing the service relocation, including any adjustments for Utility tax liability arising under Federal Tax Reform Act of 1986 and recog¬nizing any telephone company participation as defined in Section B above, shall be paid by the party requesting the service relocation. Costs and charges shall be calculated according to this tariff. The above is subject to the following conditions:

1) The Customer shall first execute an agreement, the terms of which shall provide substantially as follows:

The applicant shall contract to pay the Company the appropriate rates charged for relocation including minimum charges, and shall contract to pay the Company prior to start of construction a contribution-in-aid-of-construction for the service relocation. The Company does not provide financing for any portion of a line relocation.

Customer payments for relocated distribution lines which are approved by the Company shall equal the total cost of relocating the existing line today, plus the present value of any undepreciated portion of the existing line, less the net salvage value of the existing line.

2) For all relocated distribution lines that provide a benefit to the Company, customers who request the relocation shall reimburse the Company for distribution line relocations according to the following formula:

CPTAX ADJ. = New Line + PVDEP - SVEXISTING
Where:
CPTAX ADJ. = Customer Payment, adjusted for any tax liability
New Line = Total cost of relocating the line today
PVDEP = Present value of any unrealized depreciation expense associated with the existing line
SVEXISTING = Salvage Value of existing line (including line removal costs)

3) Utility tax liability arising under Federal Tax Reform Act of 1986: In order to avoid costs of a Customer line extension or relocation being paid or subsidized by the Company’s other ratepayers, all contributions-in-aid-of-construction for relocations billed to the Customer under this tariff will be adjusted to include an adjustment equal to the liability to the Company for applicable federal and state income taxes arising from contribution-in-aid-of-construction. as a result of the federal tax code (as the same may be amended from time to time). This adjustment for Customer built line relocations, the Customer will be billed for the adjustment based upon the reasonable cost or value of the construction contributed to the company as determined by the Company. The Customer must provide reasonable proof of costs of Customer-built line relocations or the Company may determine the value in accordance with the costs and terms of this tariff.

4) Extension Cost Update: Periodically, the Company will file with the Public Service Board and the Department of Public Service an electric service extension tariff revision updating its cost for relocations. The revision shall develop unit prices, where applicable, based on the average installed cost to the Company for such items during the test period plus directly assignable administrative costs, adjusted for (a) known and measurable changes, and (b) capital contributions received from a telephone company associated with the attachment of telephone voice grade communication cables to poles utilized by both parties. The revision shall include an adjustment for Utility tax liability arising under Federal Tax Reform Act of 1986 in an amount reflecting the liability to the Company for applicable federal and state income taxes arising from contributions-in-aid-of-construction.

Upon acceptance by the Public Service Board, the costs as described above shall be applicable to applications for electric service relocations.