UNITED STATES DEPARTMENT OF AGRICULTURE

Rural Utilities Service

BULLETIN 1724D-101B 

RD-GD-2012-69

SUBJECT: System Planning Guide, Construction Work Plans

TO: RUS Electric Borrowers and RUS Electric Staff

EFFECTIVE DATE: Date of Approval 

OFFICE OF PRIMARY INTEREST: Engineering Standards Branch, Office of Customer 

Service and Technical Assistance

INSTRUCTIONS: This Bulletin is a revision of RUS Bulletin 1724D-101B, “System Planning 

Guide, Construction Work Plans,” dated December 18, 2012. 

AVAILABILITY: This Bulletin, and any other RUS bulletin mentioned herein, is available on 

the RUS electric webpage at www.rd.usda.gov/publications/regulationsguidelines/bulletins/electric. 

PURPOSE: The purpose of this bulletin is to provide guidance to borrowers and engineers in 

the preparation of construction work plans (CWPs) for electric systems. A CWP is the 

documented results of an engineering study which has determined all of the new construction 

required to provide adequate and reliable electric service during the planning period. A CWP is 

used as an engineering support document for a loan application, as a component of ongoing 

integrated system planning, and as means for specifying and documenting plant requirements for 

the next four years. 

CHRISTOP 

HER 

MCLEAN

Digitally signed 

by CHRISTOPHER 

MCLEAN

Date: 2019.09.17

09:28:23 -04'00'

Christopher A. McLean Date

Assistant Administrator 

Electric Program

Disclaimer: The contents of this guidance document does not have the force and effect of law and is not meant 

to bind the public in any way. This document is intended only to provide clarity to the public regarding 

existing requirements under the law or agency policies.
Bulletin 1724D-101B

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TABLE OF CONTENTS

1 USE OF CONSTRUCTION WORK PLAN ...................................................................... 2

2 PREPARATION................................................................................................................. 2

3 DETERMINING CONSTRUCTION REQUIREMENTS................................................. 5

4 THE CONSTRUCTION WORK PLAN REPORT............................................................ 7

5 ENVIRONMENTAL REPORTS ....................................................................................... 9

6 CONSTRUCTION WORK PLAN AMENDMENTS........................................................ 9

7 APPROVAL OF CONSTRUCTION WORK PLANS..................................................... 10

Exhibit A - Typical Construction Work Plan Table of Contents

INDEX:

System Planning Guide 

Long-Range System Plan 

Construction Work Plans

ABBREVIATIONS

AMR Automatic Meter Reading

AMI Automated Metering Infrastructure 

CFR Code of Federal Regulations

CWP Construction Work Plan 

ER Environmental Report

G&T Generation and Transmission Cooperative 

GFR General Field Representative

kW Kilowatt

LRP Long-Range Plan

O&M Operations and Maintenance 

OCR Oil Circuit Recloser

RUS Rural Utilities Service

SCADA Supervisory Control and Data Acquisition
Bulletin 1724D-101B

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1. USE OF CONSTRUCTION WORK PLAN (CWP)

The CWP process is used to determine and document a borrower’s four year construction 

needs that are the most feasible, environmentally acceptable, and economical. New 

construction is periodically required in order to provide and maintain adequate and 

reliable electric service to all of a system’s new and existing members. The CWP should 

include all recommended electric plant facilities regardless of the financing source 

(general funds, RUS, or all other lenders).

A CWP is a valuable reference for the preparation of annual construction budgets and 

schedules. The CWP report is also used as an engineering support document for a loan 

application to finance a proposed construction program. As such, the CWP is used as a 

means to inform RUS and receive RUS’s approval of proposed new construction items.

2. PREPARATION

The first step in the CWP preparation or development process usually involves a meeting 

among the system’s management, the system’s staff or consulting engineer, the RUS 

General Field Representative (GFR), and perhaps the borrower’s power supplier. An 

agreement should be reached at this meeting on the new CWP’s planning period, 

projected maximum loads and number of consumers, and other technical items as 

presented in this section. At this time, an agreement should also be reached on dates and 

type of data to be furnished to the engineer, the target completion date of the CWP and 

future dates of any coordination, and CWP draft review meetings.

a. To Be Reviewed. The following data and studies need to be reviewed, analyzed, 

and updated by the planning engineer.

(1) Historical system data such as energy purchases and sales, losses, peak 

kW demands, and number of consumers need to be tabulated. This 

information is generally included in the CWP as reference information but 

is also used in the CWP analysis.

(2) System design criteria has to be established. These criteria identify the 

standards within which the system must perform. The design criteria 

become the basis for defining and identifying problems on the system and

for justifying necessary improvements. The design criteria should address 

all aspects of the system that are to be analyzed. All design criteria should 

be documented and included in the CWP. The system management, 

engineer, and GFR should agree upon the design criteria before 

development of the CWP study begins.

(3) The following values should be used in the design criteria.

(a) The maximum voltage drop on primary distribution lines should 

not exceed the allowances set forth in ANSI C84.1.
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(b) Design considerations shall include the thermal loading limits as 

recommend by the manufacturer. The use of best engineering 

practices will be utilized on the system under case by case basis 

when necessary.

(c) Review of primary conductor loading to ensure that best 

engineering practices are followed, and they follow the 

recommended manufacturer’s limits based on design.

(d) Conductors be replaced if found to contain an average of over two 

splices per phase per span in a one- mile (1.6-kilometer) section.

(e) System shall be designed to achieve a maximum of 200 consumer 

outage minutes, per consumer, per year, excluding outages caused 

by a major event or the power supplier, for the last five 

consecutive years.

Note: The above values are guidelines and should be reviewed by 

engineering personnel familiar with the system to arrive at specific values 

for individual utilities.

(4) The list in Section 2a(3) in this bulletin is not inclusive of all criteria that 

can or should be used. Design criteria should address deficient system 

components such as deteriorated poles and equipment, inadequate 

clearances, safety and code violations, and define the type of construction 

to be used as the system standard. The types of problems documented, 

and the numerical quantities addressed will be somewhat different for each 

electric system.

(5) Design criteria should also consider the addition of programs such as 

Conservation Voltage Reduction, Distributed Automation, Demand 

Response, and other technologies that will impact system reliability. 

These projects may require more stringent design parameters than usually 

recommended.

(6) The system’s currently approved Load Forecast (formerly referred to as a 

Power Requirements Study) needs to be reviewed. The projected system 

peak kW loads and number of consumers for the CWP planning period 

should be derived directly from this load forecast. The Load Forecast is 

generally used to project a system coincident peak from energy related 

factors, whereas a CWP is designed at a distribution circuit level which 

generally peaks at higher levels at the substation and distribution system 

levels. For the purposes of the CWP analysis, historical substation loading 

should be used for forecast load levels when designing for distribution 

improvements. Diversity and coincidence factors should be considered
Bulletin 1724D-101B

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when correlating with the Load Forecast load levels, as well as 

transmission and substation transformer loading. Any loads and numbers 

of consumers used that are not consistent with the Load Forecast 

projections need to be explained in the CWP.

(7) The system’s Long Range Plan (LRP) needs to be analyzed to ascertain 

that its basis (load projections, economic factors, etc.) are still valid for the 

CWP planning period and also that its construction recommendations are 

still required, feasible, and economically sound. It is appropriate to 

include a thorough, yet concise, written review of the LRP in the CWP, 

including a comparison of historical projected versus actual peak loads. A 

written summary of the overall recommendations of the LRP helps the 

reader understand how new recommended construction items conform to 

the projected development of the system.

Note: As of March 12, 2013, RUS no longer reviews or accepts the LRP 

from borrowers; however, RUS does require borrowers to continue to 

maintain a board approved, up-to-date LRP and keep the LRP on file.

(8) Previous CWP and CWP amendments need to be reviewed to determine 

which projects have been or will be completed and which construction 

items need to be carried over into the current CWP. Carryover items may 

need new cost estimates and occasionally may need additional 

justification. The status of the construction items of the previous CWP can 

be explained succinctly with a table.

(9) The engineer should use the system’s most recent Operations and 

Maintenance (O&M) survey with its associated “Review Rating 

Summary” (RUS Form 300) to determine the condition of system 

components such as poles and conductors, outages, and tree trimming. 

This summary may also be used to justify the need of new construction 

items and programs to correct those areas where the system does not meet 

the design criteria. The O&M survey should be appropriately updated and 

analyzed to assure that it describes the system’s present conditions. A new 

O&M survey should be performed before beginning the CWP if the 

present survey is more than 4 years old. A concise written analysis of the 

O&M survey and results, and any recommendations contained in the 

survey, should be included in the CWP. This analysis should contain 

enough details to explain deficiencies found on the system and the work 

required to correct them.

(10) All other relevant studies recently performed on the system, such as 

sectionalizing, system aging, and power factor correction, should be 

reviewed in detail and compared to the requirements of the design criteria. 

All present and projected deficiencies on the system should be 

documented in the CWP to explain the problems found and the
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construction required to resolve them. Narratives and tables may be used 

to explain and justify recommended construction.

Periodic system data and reports, such as substation maintenance reports 

and min-max voltmeter readings or equivalent AMI data if available, 

should be tabulated, analyzed, and compared in detail to the design 

criteria. All data that is included in the CWP report should be summarized 

in a concisely written narrative or table. Only include data used to define 

problems or explain and justify proposed construction items.

(11) The system’s service interruption record for the previous five years should 

be analyzed and summarized in a table and included in the CWP. The 

CWP narrative should address findings of the interruption analysis and 

any category with 200 or more consumer outage minutes, per consumer, 

per year should be explained in adequate detail.

(12) The following maps, data, and information need to be gathered, updated, 

analyzed, tabulated, and documented as appropriate:

• Various system, key, circuit, and area maps

• Results of circuit analysis and economic analysis of the system

• Installed costs of existing lines and equipment

• Historic and projected numbers, distances, and costs associated with 

installing new overhead and underground lines, services, transformers, 

and meters

• Historic and projected numbers, distances, and costs associated with 

replacing overhead and underground services, transformers, and 

meters.

This information is also useful as exhibits in the CWP to explain 

recommended construction items or projects.

(13) It is suggested that the engineer interview line crews, warehouse 

personnel, and others who have firsthand knowledge of deficiencies on the 

system or problems with equipment. All reported deficiencies should be 

corroborated before recommending construction items in the CWP.

3. DETERMINING CONSTRUCTION REQUIREMENTS

a. New Consumers. The projected number of new consumers is interpolated from 

the system’s load forecast. The number of new consumers, line distances, 

equipment, and cost data from the past several years is used to project needed 

construction and its cost to provide service to new consumers to be added during 

the time period covered by the CWP. The cost to add anticipated new large 

power usage members to the system during the CWP coverage period should also 

be added to these totals.
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b. Historical Data. Use historical data averages to determine the number and 

associated costs for any non-site specific construction needs in order to maintain 

adequate service to existing members.

c. System Peak Demand. Projected total system peak demands are also interpolated 

from the load forecast. The totals may be modified, with explanation, to include 

recently attained new load data. The engineer should apply appropriate growth 

and diversity factors to individual circuits and substations so that the total loads 

are in agreement with the load forecast projections. Loading tables, which show 

equipment capacities, projected circuit and substation transformer loads, new load 

additions, load transfers, and new construction projects should be included in the 

CWP. These loading tables are used to determine and show substation equipment 

which is anticipated to be loaded above the design criteria.

d. Anticipated Loads. Each of the system’s distribution circuits, updated to include 

anticipated new loads and circuit changes, should be analyzed at its projected 

peak load for the entire CWP planning period. The primary voltage drop at each 

circuit node, the thermal loading of all circuits’ conductors and equipment, circuit 

power factors, and circuit load balances should be compared to the design criteria.

e. Voltage Drops. Primary voltage drops calculated by computer programs should 

be corroborated with actual field measurements which have been adjusted to load 

levels equal to the computer runs. These field measurements can be obtained 

from periodic readings of the system’s installed voltmeters, historic voltage 

readings from AMI meters, or from voltage and current investigations performed 

on the system. Calculated readings that are different from the actual adjusted 

measured readings, need to be reconciled using good engineering judgment to 

justify new construction items. Costly construction projects should not be based 

solely on computer calculations that may be prone to input errors or based on 

assumptions not pertinent to the line being analyzed.

f. Recommendations. The CWP should include recommendations for correcting 

each item found that does not comply with the design criteria. This includes all 

problems found during the substation and circuit loading analyses, problems 

found in the engineer’s review of the system’s planning and O&M studies and 

operating reports, and problems found in studying the power supply system if 

applicable to the borrower.

g. Alternative Solutions. The engineer usually has several options available to 

resolve existing and anticipated problems. Most solutions require new 

construction or equipment replacement. The engineer is expected to investigate 

all feasible alternative solutions and make recommendations that are in 

compliance with the LRP. Solutions recommended are also expected to be the 

most economical, considering the needs of both the distribution and the power 

supply system together as one system. The present worth cost of alternative plans 

can easily be determined and compared by downloading and using the
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computerized workbook attached to RUS Bulletin 1724D-104, “An Engineering 

Economics Computer Workbook Procedure.”

h. Power Supply and Delivery Points. New power supply and delivery point 

construction items and projects, which are to be provided by a utility other than 

the borrower, need to be discussed with and concurred by the power supplier 

before the recommendation is included in the CWP. Agreement, in writing, needs 

to be reached on the location and amount of new capacity or delivery and the inservice date.

4. THE CONSTRUCTION WORK PLAN REPORT

The purpose of the CWP report, which is a documentation of the CWP study and 

recommendations, is to describe, justify, and summarize the items which have been 

determined necessary for construction during the work plan period. Written justification 

usually explains the need for a system improvement to meet the design criteria pertaining 

to voltage, thermal loading, service reliability, or losses, and also explains economic 

benefits compared to other feasible alternatives. The contents of the report should contain 

sufficient facts and details, including maps, graphs, and tables, to accomplish the above 

purposes. Narratives should be concise, factual, and relevant. It is suggested that any 

information or data which does not contribute to the stated purpose of the report be 

omitted. A table of contents for a typical CWP is illustrated in Exhibit A. RUS 

recommends that all of the components listed in Exhibit A, plus all other pertinent 

subjects, be incorporated in CWPs submitted to RUS for approval.

a. Executive Summary. An “Executive Summary” section should be included at the 

beginning of the CWP report. This summary should be short enough to be read 

within a few minutes and fully understood without referring to other sections of 

the report. The purpose of the summary is to briefly describe the system, the 

basis of the engineering study, and summarize the proposed construction program. 

This summary should also include expected results and the estimated costs. The 

following items should also be included in the Executive Summary.

(1) A brief description of the borrower, the electric system, and the power 

supplier. Small maps may help clarify these descriptions.

(2) A complete summary listing of all of the proposed construction items 

detailing the total cost of the proposed construction program or a table in 

the format of RUS Form 740C, “Cost Estimates and Loan Budget for 

Electric Borrowers.” These construction items should be numerically 

coded according to the latest RUS guidelines.

(3) A loading table showing the results of the proposed construction items, 

projected circuit and transformer loading, new load additions and load 

transfers. The table should show that all anticipated equipment and circuit 

loading problems will be resolved during the planning period.
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b. Historical and Projected Data. A section of the CWP report should document 

historical and projected system data, the design criteria, unit cost estimates and 

their derivation, and a written analysis of the various system studies and data that 

the engineer reviewed, prepared and used in performing the systems analysis. In 

general, this information is used to determine the portions of the system and 

equipment which do not meet the design criteria. The information is also used to 

formulate a basis for the acceptability and cost estimates of alternative plans to 

resolve the existing and anticipated problems.

c. Documentation. Another complete section of the CWP report should be used to 

document the entire construction program proposed. It is suggested that the items 

in this section be arranged in the same order as found on RUS Form 740C. All 

significant proposed new construction items, groups of items, and system 

modifications should be adequately and concisely described and justified. 

Justification usually includes the reason for and expected results of the 

construction, and also shows favorable economics when compared to other 

feasible alternatives.

(1) Transmission line, substation, and other power supply items can be 

explained using form and contents similar to distribution items.

(2) A concise written summary analysis of other relevant independent system 

studies, such as O&M, sectionalizing, Supervisory Control Data 

Acquisition (SCADA), load management, Automatic Meter Reading 

(AMR) feasibility, and system aging studies should be included in the 

report. This analysis should explain the study, its results, and the need for 

new construction. A copy of each study need not be included in or 

appended to the CWP report. A listing or table of the construction items 

and their associated costs proposed as a result of each of the above studies 

should be placed in the CWP report with the other required construction 

items.

d. Calculations. Samples of calculations performed by the engineer, and sample 

printouts of the computer programs used by the engineer, such as engineering 

economic analysis and distribution circuit analysis, should be included in the 

Appendix of the CWP report. It is desirable to include only one or two typical 

samples of calculations or printouts. However, the engineer should retain all 

pertinent calculations, data, and notes for future references.

e. Appendix. The Appendix of the CWP should also include maps of the system 

which show, as a minimum, the following information:

• The borrower’s service area and each substation area;

• The power supply system facilities such as generating stations, transmission 

lines, and substations;

• Distribution lines and components such as line regulators, capacitors, 

protection devices, etc.;
Bulletin 1724D-101B

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• Representative primary voltage drops resulting from projected loads 

throughout the system and at the end of each circuit;

• Planned and/or anticipated new loads, lines, equipment, etc.;

• Recommended new and carryover construction items; and

• Any additional data or information that may be required to describe the 

system or describe and justify proposed new construction items.

f. Maps

(1) The first map should show the existing system, with anticipated loads 

(existing customer growth and additions), anticipated and planned circuit 

changes, and projected resulting primary voltages at the end of the 

planning period. The purpose of this map is to clearly describe the system 

and show anticipated problems at the end of the planning period without 

proposed new construction items.

(2) The second map should contain all of the pertinent information included 

on the first map plus the proposed construction items and the resulting 

voltage and other system improvements. The purpose of this map is to 

show that the proposed new construction and changes will improve 

primary voltages or otherwise are beneficial to the system.

(3) The above-mentioned maps should be drawn neatly, as close to scale as 

possible, and utilize accepted standard symbols. A key of the symbols 

should be included on the maps.

5. ENVIRONMENTAL REPORTS (CWP and CWP AMMENDMENTS)

Refer to Title 7 of the Code of Federal Regulations, Part 1970, Environmental Policies 

and Procedures, for requirements regarding environmental reviews. The environmental 

review process is concluded when the RUS approves the applicability of a Categorical 

Exclusion (CE), issues a Finding of No Significant Impact (FONSI), or issues a Record 

of Decision (ROD) and must be completed prior to the start of construction.

6. CONSTRUCTION WORK PLAN AMENDMENTS

A CWP amendment is required to add facilities to a previously, RUS approved CWP or 

to make significant physical changes in the facilities already included in a RUS approved 

CWP unless the project meets the qualifications of a minor project.

7. APPROVAL OF CONSTRUCTION WORK PLANS

a. Approval. Where practical, a draft of the CWP report should be presented to the 

RUS GFR prior to completing the final version.
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b. Approval Authority. RUS CWP approval authority is delegated to the GFR for all 

distribution, headquarters, and transmission facilities. Approval for any 

generation or acquisition of facilities contained in the CWP is delegated to the 

appropriate RUS office in Washington, D.C. RUS will determine the appropriate 

approval authority for all other types of facilities on a case by case

basis. Electronic copies of all documentation shall be submitted to RUS. RUS 

approval of the CWP constitutes general approval of the need for the construction 

of facilities in the CWP. Borrowers seeking financing from RUS for the 

construction of these projects should consult the appropriate regulation regarding 

the need for design approval, contract approval, or environmental approval.
EXHIBIT A

TYPICAL CONSTRUCTION WORK PLAN TABLE OF CONTENTS

i. Title Page; Engineer’s Certification

ii. Table of Contents

I. EXECUTIVE SUMMARY

A. Purpose, Results, and General Basis of Study

B. Service Area, Distribution System, and Power Supply

C. Summary of Construction Program and Costs

D. Loading Table with Changes

II. BASIS OF STUDY AND PROPOSED CONSTRUCTION

A. Design Criteria

B. Distribution Line and Equipment Costs

C. Status of Previous CWP Items

D. Analysis of Current System Studies

1. Current Long-Range Plan

2. Current O&M Survey (RUS Form 300)

3. Sectionalizing Studies

E. Historical and Projected System Data

1. Annual Energy, Load, and Consumer Data

2. Substation Load Data

3. Transformer and Circuit Loads

4. Load Current Measurements

5. Voltage Measurements

6. System Outages and Reliability

III. REQUIRED CONSTRUCTION ITEMS [See Note Below]

A. Service to New Customers

B. Service Changes to Existing Customers

C. Distribution Lines – Additions and Changes

D. Substations (Metering Points) – Additions and Changes

E. Sectionalizing Equipment – Additions and Changes

F. Line Regulators – Additions and Changes

G. Capacitors – Additions and Changes

H. Ordinary Replacements

I. Other Distribution Items
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Note: This list of required construction items may not be complete for all systems. Other 

categories—such as transmission lines, SCADA facilities, and headquarters facilities—

should be included in each CWP as appropriate.

IV. APPENDIX

A. Samples of Computerized Analyses Used

1. Economic Analysis of Alternative Plans

2. Distribution Circuit Analysis Printout

3. Economical Conductor Sizes

B. Letter of Concurrence from Power Supplier

C. Systems Maps with Projected Load Levels

1. Map of Projected System Without Changes

2. Map with Proposed New Construction Items