(A) Applicability
This rule is applicable to all electric utilities
to facilitate the policy of the state as set forth in section 4928.02 of the
Revised Code by requiring all of the state's electric utilities to apply
the same policies and charges on a nondiscriminatory and comparable basis in
fulfilling the obligation to construct line extensions when necessary to
provide adequate distribution service to new or expanded customer loads, both
residential and nonresidential.
(B) Tariff criteria
(1) Each electric utility
shall have on file with the commission an approved tariff schedule for the
provision of line extensions consistent with the requirements of this
rule.
(2) In the event that
provisions are required to implement circumstances not addressed in this rule,
the electric utility shall address those circumstances in its application, but
will make its best efforts to maintain consistency with the rules
herein.
(3) Upon the filing of an
application to establish or modify line extension tariffs, the commission may
fix a time and place for hearing if the application appears to be unjust or
unreasonable. The burden of proof to show that the proposals in the application
are just and reasonable is placed upon the electric utility.
(C) Cost estimates
(1) Within ten business
days of a request, the electric utility shall provide a nonbinding good faith
cost estimate for the line extension project or contact the customer and advise
that it requires further relevant information. Under the circumstances where
the electric utility requires further relevant information, the electric
utility shall contact the customer and shall provide a nonbinding good faith
cost estimate no more than ten calendar days from the receipt of the required
information.
(2) Within forty-five
calendar days of a request, the electric utility shall provide a binding firm
cost estimate for the line extension project. Under the circumstance where the
electric utility requires further relevant information, the electric utility
shall contact the customer and shall provide a binding firm cost estimate no
more than forty-five calendar days from the receipt of the required
information.
(3) All firm cost
estimates are valid for ninety calendar days and are subject to change based
upon obtaining necessary rights of way and to conditions beyond the reasonable
control of the electric utility.
(4) The electric utility
may allow third-party installation of line extension facilities subject to
utility specifications and inspection. If a customer completes any of the work,
a detailed cost estimate will be developed by the electric utility for the
purpose of calculating the amount to be paid by the customer, as well as the
amount that is the responsibility of the electric utility.
(5) Costs attributed to
land clearance activity, trenching, and backfilling required for the
installation of line extension facilities on the customer's property are
the responsibility of the customer.
(D) Line extension charges
(1) For line extensions
to residential single family homes, both individual homes and homes in a
development, unless noted otherwise, the following applies:
(a) The electric utility shall be responsible for all costs,
excluding the incremental costs of premium services (the sum of the electric
utility's cost to provide the premium installation minus the electric
utility's cost of a standard, single-phase installation), up to five
thousand dollars.
(b) The customer is responsible for the incremental costs of
premium services prior to the start of construction.
(c) The customer should make arrangements with the electric
utility for the payment of the non-premium line extension costs that exceed
five thousand dollars. The electric utility shall afford the nondeveloper,
individual homeowner the option of paying those costs, plus carrying costs, on
a prorated monthly basis for up to fifty months, so long as the homeowner does
not have a delinquent bill with the electric utility, as determined in
accordance with rule 4901:1-18-04 of the Administrative Code.
(2) For line extensions
to residential, non-master-metered, multifamily installations (two or more
units) the following applies:
(a) The electric utility shall be responsible for all costs,
excluding the incremental costs of premium services (the sum of the electric
utility's cost to provide the premium installation minus the electric
utility's cost of a standard, single-phase installation), up to
twenty-five hundred dollars per unit.
(b) The customer will be responsible for the incremental costs of
premium services prior to the start of construction.
(c) The customer should make arrangements with the electric
utility for the payment of the non-premium line extension costs that exceed
twenty-five hundred dollars per unit.
(3) For line extensions
to nonresidential customers the following applies:
(a) The electric utility shall be responsible for sixty per cent
of the total cost of the line extension, excluding the incremental costs of
premium services (the sum of the electric utility's cost to provide the
premium installation minus the electric utility's cost to install, in
accordance with good utility practice, a standard line extension to the
project), with the customer responsible for the remainder.
(b) If a substation is required as part of the line
extension project to a customer, the customer shall be given the option of
building (pursuant to all applicable electrical standards), owning, and
maintaining such substation.
(E) Electric utility cost recovery for
line extensions
(1) The payment for
premium services and for the cost of residential construction in excess of the
limits of five thousand dollars for single-family residences and twenty-five
hundred dollars per unit for multifamily residences shall be considered as
contribution in aid of construction (CIAC) and will be grossed-up by the effect
of applicable taxes. The total CIAC payment (including the tax gross-up) will
be accounted for according to applicable accounting standards.
(2) All other costs
associated with line extensions, including, but not limited to, the costs of
necessary technical studies, operation and maintenance costs, and capital costs
are eligible for recovery in the next distribution rate proceeding, in
accordance with traditional ratemaking standards.
(3) Line extension costs
and the recovery of such costs will not be included in the recovery of any
costs associated with infrastructure and modernization of the electric
utility's distribution system for which the electric utility may seek
recovery under division (B)(2)(h) of section 4928.143 of the Revised
Code.
(F) Future customers
(1) Any customer who paid
to the electric utility a CIAC, other than for premium services, may be
entitled to a refund of a portion of the CIAC paid in accordance with the
following:
(a) If any new customer, within fifty months of the completion of
a line extension project for which a party has paid to the electric utility a
CIAC, utilizes all or part of the facilities for which the CIAC has been paid,
the party who paid the CIAC may be entitled to a refund which represents a pro
rata portion of the original CIAC calculated to equitably share the CIAC
responsibility for those facilities used in service by both the new and
original customer.
(b) If any new additional customer, within fifty months of the
completion of the line extension project for which a party has paid to the
electric utility a CIAC, utilizes all or part of the facilities for which a
CIAC has been paid, the party who paid the CIAC may also be entitled to a
refund.
(2) Such refunds will be
reflected as a reduction to CIAC for ratemaking purposes.
