Ohio Administrative Code
Title 4901:1 - Utilities
Chapter 4901:1-9 - Metering Options
Section 4901:1-9-07 - Rules, regulations, and practices for the construction of electric line extensions
Universal Citation: OH Admin Code 4901:1-9-07
Current through all regulations passed and filed through August 26, 2022
(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 requirements
(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 shall 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 shall be 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 shall be 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 shall apply:
(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
shall be responsible for the incremental costs of premium services prior to the
start of construction.
(c) The
customer shall 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
shall apply:
(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 shall be responsible for the
incremental costs of premium services prior to the start of
construction.
(c) The customer
shall 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 shall apply:
(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).
(b) The customer
shall be responsible for forty per cent of the total cost of the line extension
plus the incremental costs of premium services prior to the start of
construction.
(c) 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 shall be grossed-up by the
effect of applicable taxes. The total CIAC payment (including the tax gross-up)
shall 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 shall be 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 shall 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 shall be reflected as a
reduction to CIAC for ratemaking purposes.
Five Year Review (FYR) Dates:
7/22/2021 and
07/22/2026
Promulgated
Under:
111.15
Statutory Authority: R.C.
4905.22,
4928.06,
4928.151
Rule Amplifies: R.C.
4905.17,
4905.22,
4928.02
Prior Effective Dates: 01/20/1963, 08/29/2009,
08/20/2015
Effective: 8/20/2015
Five Year
Review (FYR) Dates: 06/04/2015 and
06/04/2020
Promulgated
Under: 111.15
Statutory
Authority: 4905.22,
4928.06,
4928.151
Rule
Amplifies: 4905.17,
4905.22,
4928.02
Prior
Effective Dates: 1/20/1963, 8/29/2009
Disclaimer: These regulations may not be the most recent version. Ohio may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
