170 IAC 4-1-27 Extension of distribution and service lines; variances

Sec. 27. Extension of Distribution Lines and Service Lines by Electric Public Utilities. (A) Jurisdiction of Commission. This Rule 25 [this section] applies to the extension of the distribution lines and service lines by electric public utilities throughout the territories served by them, both urban and rural, and shall govern the commission in determining all matters relative thereto coming before it. (B) Responsibility of Electric Utilities. In addition to its existing statutory responsibilities, each electric utility shall, upon proper application for service have the authority and obligation subject to the provision of (F)(2) below to construct, own, operate and maintain the necessary electrical facilities for rendering service to the customer's meter in the case of underground services, or weatherhead in the case of overhead services. (C) Extensions. Each electric utility shall, upon proper applications for service from overhead and/or underground distribution facilities, provide necessary facilities for rendering adequate service, without charge for such facilities, when the estimated total revenue for a period of two and one half (2 1/2) years to be realized by the electric utility from permanent and continuing customers on such extension is at least equal to the estimated cost of such extension. (D) Extension Exceeding the Cost Limits Set Forth in (C) Above. If the estimated cost of the extension required to furnish adequate service is greater than the total estimated revenue from such extension as provided in (C) above such an extension shall be made by the electric utility under the following conditions: (1) Upon proper applications for such extension and adequate provision for payment to the electric utility by such applicants of that part of the estimated cost of such extension over and above the amount which would have qualified as provided in (C) above, the electric utility shall proceed with such extension, or (2) If in the opinion of the electric utility (a) the estimated cost of such extension and the prospective revenue to be received from it is so meager as to make it doubtful whether the revenue from the extension would ever pay a fair return on the investment involved in such extension, or (b) in a case of real estate development, with slight or no immediate demand for service, or (c) in the case of an installation requiring extensive equipment with slight or irregular service; then in any of the above cases the electric utility shall submit the same to the commission for investigation and determination as to the public convenience and necessity of such extension, and if so required, the conditions under which it shall be made, and (3) For each customer, exclusive of the initial applicants considered in the making of an extension, connected to such an extension within the period of six years from the completion of such extension, the electric utility shall refund to such initial applicants, in proportion to their respective contributions toward the cost of such extension, an amount equal to two and one half (2 1/2) times the estimated annual revenue from such new customer, less the cost to service such new customer, but the total of all refunds to any such applicant shall in no event exceed the aforesaid contribution of such applicant. (E) Information. (1) All estimates of costs as required in (C) above shall be determined by the utility from actual experience, and each electric utility shall within the first quarter of each year submit to the commission information used to establish the basis for the above amounts. (2) In the event that the applicant is required by (D) above to make any payment, the utility shall upon request make available to the applicant: (a) the information used to establish the basis for the applicable amount as submitted to the commission in compliance with this rule; and (b) the information used to establish the basis for the "estimated total revenue for a period of two and one half (2 1/2) years to be realized by the utility from permanent and continuing customers on such extension" as required by this rule. (F) Service Lines. (1) The applicants in relation to (D)(1) above shall agree to pay their portion of such estimated costs for primary facilities. (2) For service (defined as the conductors and equipment for delivering energy, not to exceed 600 volts, from the electrical supply system to the wiring system of the premises served) the applicant shall have the right to install same subject to such reasonable specifications and inspections as might be prescribed by the utility. The utility may require the applicant to submit to the utility sufficient designs and/or plans for the service lines before proceeding. If the utility provides the designs and/or plans the utility may require the applicant to reimburse the utility at cost. A utility shall have no responsibility for service lines installed by the applicant. (G) Contract for Service. An electric utility shall not be required to make extension as provided in this Rule 25 [this section] unless the customers to be initially served by such extension upon its installation have entered into an agreement with the electric utility setting forth the obligations and commitments of the parties, which may require the customer to provide a satisfactory guaranty to the electric utility of the performance of the customer's obligations thereunder. (H) Variations from Rule. This Rule 25 [this section] shall not be construed as prohibiting an electric utility from (1) making extensions without charge where the cost of the same is greater than is provided in (C) above, or (2) providing an alternate plan to be approved by the commission; provided that in the application of this subsection (H) no discrimination is practiced between customers whose service requirements are similar.