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 tax assessments and recognizing 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, for which such relocation provides a benefit to 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, minus the present value of the future cost of replacing the existing line in its original configuration and location.

2) Calculating the cost to the requesting customer of all relocated distribution lines for which such relocation provides a benefit to the company. (See Docket No. 5496, page 23, Order of 9/21/99)

CP = NL + PV1 - SV - PV2
where
CP = customer payment grossed up by the company’s tax liability
NL = Total cost of relocating the line today
PV1 = Present value of the unrealized depreciation in the existing line
SV = Salvage value of the existing line (net of cost of removal)
PV2 = Present value of the future replacement of the existing line in its original configuration (and location)

3) Tax Assessment: All contributions-in-aid-of-construction for relocations billed to the customer under this tariff will be adjusted to include a tax assessment equal to the liability to the company for applicable federal and state income taxes arising from contribution-in-aid-of-construction. For customer-built line relocations, the customer will be billed for the tax assessment based upon the reasonable cost or value of the construction as determined by the company. The customer must provide reasonable proof of costs of customer-built line relocations.

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 a tax assessment 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.