When one or more applicants request overhead or underground electric service at premises not connected to the department's distribution system or request an increase or change in service to premises already connected where such increase necessitates additional investment, the department, after consideration of applicant's electric requirements, will designate the service requested as permanent, indeterminate or temporary in accordance with the definitions.
The determination of facility type and routing will be made by the department to be consistent with the characteristics of the territory in which service is to be rendered and the nature of the department's existing facilities in the area.
In all cases, the facilities provided will be constructed to conform to the department's construction specifications. Distribution line extension contracts will be based upon the department's estimate of the cost of construction and installing the facilities necessary to adequately supply the service requested by the applicant. Such cost will include the cost of all materials, labor, rights-of-way, trench and backfill, tree trimming, etc., together with all incidental and overhead expenses connected therewith including, but not limited to, engineering and legal expenses. Where special items, not incorporated in said specifications, are required to meet construction conditions, the cost thereof will also be included.
(Ord. 12-94; Ord. 59-15 § 2; Ord. 2026-02 § 4)
Distribution system extensions installed by the department shall be and remain the property of the department and any payments made by the applicant shall not entitle the applicant or anyone other than the department to any ownership and easement right herein.
(Ord. 12-94; Ord. 59-15 § 2; Ord. 2026-02 § 4)
A. 
Permanent Service. Permanent service is applicable to overhead or underground electric line extensions for secondary or primary service where the use of service is to be permanent and where a continuous return to the department of sufficient revenue to support the necessary investment is reasonably assured.
Applicant shall be required to pay to the department as a construction payment all estimated costs for electric distribution facilities necessary to serve applicant. Said construction payment shall be refundable in part or in its entirety during a 10-year period if a valid latecomer agreement has been signed. Except for a 10-year period for electric line extensions, the latecomer agreement process is as described in Chapter 3.10 RMC. At the end of said 10-year period, any remaining construction payment becomes nonrefundable.
B. 
Indeterminate Service. Indeterminate service is applicable to overhead or underground electric line extensions for service which is of an indefinite or indeterminate nature, such as that required by, but not limited to:
1. 
Real estate subdivisions and development of property for sales;
2. 
Other enterprises of speculative characteristics; or
3. 
All other service to which neither permanent service or temporary service is applicable.
For electric service of an indeterminate character involving real estate subdivisions and development of land for sale, applicant shall be required to pay to the department as a construction payment all estimated costs for necessary overhead or underground electric distribution extension facilities. Said construction payment may be refundable to the developer in part or in its entirety during a 10-year period if a valid latecomer agreement has been signed. At the end of said 10-year period, any remaining unrefunded construction payment becomes nonrefundable. For all other types of electric service of an indeterminate character, applicant shall be required to pay to the department the entire estimated cost for necessary overhead or underground electric distribution extension facilities as a nonrefundable construction payment.
C. 
Temporary Service. Temporary service is applicable to overhead or underground electric line extensions where service is of a known temporary nature.
For electric service of a temporary character, the applicant shall be required to pay to the department as a construction payment an amount equal to the estimated cost of installing and removing all necessary overhead or underground electric distribution extension facilities, less the estimated salvage value. If temporary service is continued for more than 18 months following the extension completion date, the nature of such continued service will be evaluated and, if appropriate, reclassified as indeterminate service.
(Ord. 12-94; Ord. 59-15 § 2; Ord. 2022-32 § 6; Ord. 2026-02 § 4)
Distribution line extensions requiring customer construction payment are subject to refunds during the 10-year period commencing with the extension completion date. Such refunds will be made in conformance with the provisions applicable to refunds under the appropriate classification under which the extension is identified. No refunds will be made after the 10-year period following the extension completion date and any remaining unrefunded customer construction payment becomes a permanent contribution and no longer subject to refund for any reason. In no case shall refunds be made which exceed in total the amount of construction payment made by any customer. Where a permanent service customer who has made a construction payment terminates service within the refund period and another permanent customer takes service at the same location, the first customer may transfer his right to refunds, if any, to the new customer, provided a written agreement covering such transfer is executed by the customers and accepted by the department at the time the new customer applies for service. A permanent customer who terminates service and does not transfer refund eligibility to a new customer shall bear full responsibility of notifying the department of address changes such that refunds, if any, can be forwarded. In no event shall any indeterminate or temporary customer who has terminated service be eligible for any refund after such termination.
A. 
Permanent Service. Construction payments made under this extension shall be subject to refund without interest during the 10-year period of a valid latecomer agreement following the extension completion date as follows:
For each additional permanent service customer connected directly to an electric distribution extension upon which there are unrefunded construction payments remaining, the department will recalculate the construction cost of the shared distribution facilities, based upon the original construction costs, as well as appropriate sharing of construction payment requirements among all customers to be served by the distribution line extension. Construction payments as required of each additional customer or customers must be made prior to connection of electric service laterals. Refunds of construction payments, where appropriate, will be calculated and paid once each year during the refund period and at the time determined by the department. Each customer having made a construction payment will receive as a refund the amount necessary to adjust the construction payment to the proper level considering the additional customers served from the extension and considering the standard construction allowance effect, if any, from a subsequent extension.
In the case of a subsequent extension made from an extension on which there are remaining unrefunded customer construction payments and where the initial calculated standard construction allowance from customers on said subsequent extension would exceed the construction costs for such extension, the excess standard allowance will be credited to the extension on which there are remaining unrefunded customer construction payments and become a part of the annual refunds made thereon.
Additional customers of an indeterminate service or temporary service classification can be served from a permanent extension on which unrefunded customer construction payments remain only after first allocating a portion of the construction costs of the permanent extension on a permanent basis to such indeterminate service or temporary service customers. The portion of customer construction payments required from such indeterminate service or temporary service customers resulting from said allocation will correspondingly reduce the responsibility of customers on the permanent extension and become a part of the annual refund made to such customers.
B. 
Indeterminate Service. Construction payments made under indeterminate extension for real estate or land development shall be subject to refund without interest during the 10-year period following the extension completion date as follows:
Customers of a permanent service or temporary service classification can be served from an indeterminate extension on which construction payments remain only after first allocating a portion of the costs of the indeterminate extension on a permanent basis to such permanent service or temporary service customers. The portion of customer construction payments required from said allocation will then become a part of an annual refund to be made to customers on the indeterminate extension.
C. 
Temporary Service. No refund of construction payments for temporary service will be made unless the subject extension is subdivided by the addition of permanent service or indeterminate service customers or in the event that the temporary service customer is reclassified as an indeterminate service customer as follows:
1. 
Customers of a permanent service or indeterminate service classification can be served from a temporary extension only after first allocating a portion of the costs of the temporary extension on a permanent basis to such permanent service or indeterminate service customers. The portion of customer construction payments required from said permanent service or indeterminate service customers resulting from said allocation will be refunded to customers on the temporary extension.
2. 
A temporary service customer continuing to require service after an 18-month period will be subject to reevaluation as to the nature of service. If appropriate, such customer and the associated construction will be reclassified as indeterminate service with costs and refund consideration being reevaluated. In no event shall the total amount refunded to any customer exceed the total construction payment made by that customer.
(Ord. 12-94; Ord. 59-15 § 2; Ord. 2026-02 § 4)
Where electric distribution system reinforcement is required for serving a residential applicant's total load requirements, other than for three-phase considerations, the department will make such reinforcements at its expense. For all classes of service, any required reinforcement shall generally recognize the construction cost and customer construction payment provisions of this extension policy in accordance with individual agreements between applicant and the department based upon the amount, character and permanency of the load.
(Ord. 12-94; Ord. 59-15 § 2; Ord. 2026-02 § 4)
Customer or customers desiring to have existing overhead facilities installed underground or desiring to have existing overhead or underground facilities relocated may request the department to make such changes.
If the department determines that such conversion or relocation can reasonably be made, the department will make such conversion or relocation on the following basis:
The estimated remaining life value of the department's existing facilities plus the cost of removing such facilities less salvage value shall be paid by the customer or customers as a nonrefundable payment. New facilities to be installed will then be considered in all respects as a new distribution extension under the terms and conditions of this extension policy.
In areas where undergrounding of existing overhead facilities is required by actions of the department, the costs of the conversion will be borne by the department.
(Ord. 12-94; Ord. 59-15 § 2; Ord. 2026-02 § 4)
Where special equipment is requested by customers, the lifecycle costs associated with the design, procurement, installation, operation and maintenance, and replacement/upgrade of the special equipment shall be paid by the requesting customer in advance of installation. The fully burdened costs are to be based upon a standard estimation framework developed and approved by the chief electrical engineer. The chief electrical engineer reserves the right to not provide special equipment if the equipment or installation will cause more risk or harm to other customers or to the electrical distribution system.
(Ord. 59-15 § 2; Ord. 2026-02 § 4)
In the situation where the extension is of such length and the prospective customer revenue temporarily or permanently to be derived therefrom is so limited as to make it doubtful whether necessary fixed costs on the investment would be earned, the department reserves the right to require applicant to pay in advance all construction costs and, in addition, contract to pay the department annually an amount to cover the cost of depreciation, operation and maintenance, and pertinent costs related to such facilities.
Where line extensions are required for three-phase industrial or commercial customers, the department, at its sole discretion, shall permit the applicant to enter a five-year agreement for electric service which will guarantee the department sufficient return on investment to justify the line extension in lieu of a construction payment. This option may only be offered to permanent customers. If offered, the department may construct extensions to an applicant; provided, that applicant guarantees to pay the department five annual payments, each payment equal to 20 percent of the actual extension cost. The first payment shall be made one year from issuance of the certificate of occupancy of the applicant's facility or the date of substantial completion, whichever comes first. The department may, at its sole discretion, require the applicant to provide cash, surety bond, or approved letter of credit to secure the revenue grantee.
(Ord. 12-94; Ord. 37-07; Ord. 59-15 § 2; Ord. 2026-02 § 4)