Current through all regulations passed and filed through September 16, 2024
(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.