Pennsylvania Code
Title 52 - PUBLIC UTILITIES
Part I - Public Utility Commission
Subpart C - Fixed Service Utilities
Chapter 65 - WATER SERVICE
Subchapter A - SERVICE GENERALLY
Section 65.21 - Duty of public utility to make line extensions

Universal Citation: 52 PA Code ยง 65.21

Current through Register Vol. 54, No. 38, September 21, 2024

Each public utility shall file with the Commission, as part of its tariff, a rule setting forth the conditions under which facilities will be extended to supply service to an applicant within its service area. Upon request by a bona fide service applicant, a utility shall construct line extensions within its franchised territory consistent with the following directives:

(1) Line extensions to bona fide service applicants shall be funded without customer advance if the annual revenue from the line extension will equal or exceed the utility's annual line extension costs.

(2) If the annual revenue from the line extension will not equal or exceed the utility's annual line extension costs, a bona fide service applicant may be required to provide a customer advance to the utility's cost of construction for the line extension. The utility's investment for the line extension shall be the portion of the total construction costs which generate annual line extension costs equal to annual revenue from the line extension. The customer advance amount shall be determined by subtracting the utility's investment for the line extension from the total construction costs.

(3) The utility's investment for the line extension shall be based on the following formula, where X equals the utility's investment attributed to each bona fide applicant:

X= [AR - OM] divided by [I + D] ; and,
AR= the utility's annual revenue
OM= the utility's operating and maintenance costs
I= the utility's current debt ratio multiplied by the utility's weighted long-term debt cost rate
D= the utility's current depreciation accrual rate

The provisions of this §65.21 issued under the Public Utility Code, 66 Pa.C.S. § § 501, 504-506, 1301 and 1501.

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