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[Code of Federal Regulations]
[Title 7, Volume 11, Parts 1600 to 1899]
[Revised as of January 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1730]

[Page 301-305]
 
PART 1730--ELECTRIC SYSTEM OPERATIONS AND MAINTENANCE

                           Subpart A--General

Sec.
1730.1  Introduction.
1730.2  RUS policy.
1730.3  RUS addresses.
1730.4  Definitions.
1730.5-1730.19  [Reserved]

           Subpart B--Operations and Maintenance Requirements

1730.20  General.
1730.21  Inspections and tests.
1730.22  Borrower analysis.
1730.23  Review rating summary, RUS Form 300.
1730.24  RUS review and evaluation.
1730.25  Corrective action.
1730.26  Engineer's certification.
1730.27-1730.99  [Reserved]

Appendix A to Subpart B to **Part** 1730--Review Rating Summary, RUS Form 
          300

    Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.

    Source: 63 FR 3450, Jan. 23, 1998, unless otherwise noted.

                           Subpart A--General

Sec. 1730.1  Introduction.

    (a) This **part** contains the policies and procedures of the Rural 
Utilities Service (RUS) related to electric borrowers' operation and 
maintenance practices and RUS' review and evaluation of such practices.
    (b) The policies and procedures included in this **part** apply to all 
electric borrowers (both distribution borrowers and power supply 
borrowers) and are intended to clarify and implement certain provisions 
of the security instrument and loan contract between RUS and electric 
borrowers regarding operations and maintenance. This **part** is not 
intended to waive or supersede any provisions of the security instrument 
and loan contract between RUS and electric borrowers.
    (c) The Administrator may waive, for good cause, on a case by case 
basis, certain requirements and procedures of this **part**.

Sec. 1730.2  RUS policy.

    It is RUS policy to require that all property of a borrower be 
operated and maintained properly in accordance with the requirements of 
each borrower's loan documents. It is also RUS policy to provide 
financial assistance only to borrowers whose operations and maintenance 
practices and records are satisfactory or to those who are taking 
corrective actions expected to make their operations and maintenance 
practices and records satisfactory to RUS.

Sec. 1730.3  RUS addresses.

    (a) Persons wishing to obtain forms referred to in this **part** should 
contact: Program Support and Regulatory Analysis, Rural Utilities 
Service, U.S. Department of Agriculture, Stop 1522, 1400 Independence 
Ave., SW., Washington, DC 20250-1522, telephone (202) 720-8674. 
Borrowers or others may reproduce any of these forms in any number 
required.
    (b) Documents required to be submitted to RUS under this **part** are to 
be sent to the office of the borrower's assigned RUS General Field 
Representative (GFR) or such other office as designated by RUS.

Sec. 1730.4  Definitions.

    Terms used in this **part** have the meanings set forth in 7 CFR **Part** 
1710.2. References to specific RUS forms and other RUS documents, and to 
specific sections or lines of such forms and documents, shall include 
the corresponding forms, documents, sections and lines in any subsequent 
revisions of these forms and documents. In addition to the terms defined 
in 7 CFR **Part** 1710.2, the term Prudent Utility Practice has the meaning 
set forth in Article 1, Section 1.01 of Appendix A to Subpart B of 7 CFR 
**Part** 1718--Model Form of Mortgage for Electric Distribution Borrowers, 
for the purposes of this **Part**.

[[Page 302]]

Secs. 1730.5-1730.19  [Reserved]

           Subpart B--Operations and Maintenance Requirements

Sec. 1730.20  General.

    Each distribution borrower and power supply borrower shall operate 
and maintain its system in compliance with Prudent Utility Practice, in 
compliance with its loan documents, and in compliance with all 
applicable laws, regulations and orders, shall maintain its systems in 
good repair, working order and condition, and shall make all needed 
repairs, renewals, replacements, alterations, additions, betterments and 
improvements, in accordance with applicable provisions of the borrower's 
security instrument. Each borrower is responsible for on-going 
operations and maintenance programs, for maintaining records of the 
physical and electrical condition of its electric system and for the 
quality of services provided to its customers. The borrower is also 
responsible for all necessary inspections and tests of the component 
parts of its system, and for maintaining records of such inspections and 
tests. Each borrower shall budget sufficient resources to operate and 
maintain its system in accordance with the requirements of this **part**. 
For portions of the borrower's system that are not operated by the 
borrower, if any, the borrower is responsible for ensuring that the 
operator is operating and maintaining the system properly in accordance 
with the operating agreement.

Sec. 1730.21  Inspections and tests.

    (a) Each borrower shall conduct all necessary inspections and tests 
of the component parts of its electric system, and maintain adequate 
records of such inspections and tests.
    (b) The frequency of inspection and testing will be determined by 
the borrower in conformance with applicable laws, regulations, national 
standards, and Prudent Utility Practice. The frequency of inspection and 
testing will be determined giving due consideration to the type of 
facilities or equipment, manufacturer's recommendations, age, operating 
environment and hazards to which the facilities are exposed, 
consequences of failure, and results of previous inspections and tests. 
The records of such inspections and tests will be retained in accordance 
with applicable regulatory requirements and Prudent Utility Practice. 
The retention period should be of a sufficient time period to identify 
long-term trends. Records must be retained at least until the applicable 
inspections or tests are repeated.
    (c) Inspections of facilities must include a determination of 
whether the facility complies with the National Electrical Safety Code, 
National Electrical Code (as applicable), and applicable State or local 
regulations. Any serious or life-threatening deficiencies shall be 
promptly repaired, disconnected, or isolated in accordance with 
applicable codes or regulations. Any other deficiencies found as a 
result of such inspections and tests are to be recorded and those 
records are to be maintained until such deficiencies are corrected or 
for the retention period required by paragraph (b) of this section, 
whichever is longer.

Sec. 1730.22  Borrower analysis.

    (a) Each borrower shall periodically analyze in writing its 
operations and maintenance policies, practices, and procedures to 
determine if they are appropriate and if they are being followed. The 
records of inspections and tests are also to be reviewed and analyzed to 
identify any trends which could indicate deterioration in the physical 
condition or the operational effectiveness of the system or suggest a 
need for changes in operations or maintenance practices. For portions of 
the borrower's system that are not operated by the borrower, if any, the 
borrower's written analysis would also include a review of the 
operator's performance under the operating agreement.
    (b) When a borrower's operations and maintenance policies, 
practices, and procedures are to be reviewed and evaluated by RUS, the 
borrower shall:
    (1) Conduct the analysis required by paragraph (a) of this section 
not more than 90 days prior to the scheduled RUS review;
    (2) Complete RUS Form 300, Review Rating Summary, and other related

[[Page 303]]

forms, prior to RUS' review and evaluation; and
    (3) Make available to RUS the borrower's completed RUS Form 300 
(including a written explanation of the basis for each rating) and 
records related to the operations and maintenance of the borrower's 
system.
    (c) For those facilities not included on the RUS Form 300 (e.g., 
generating plants), the borrower shall prepare and complete an 
appropriate supplemental form for such facilities.

Sec. 1730.23  Review rating summary, RUS Form 300.

    RUS Form 300 in Appendix A shall be used when required by this **part**.

Sec. 1730.24  RUS review and evaluation.

    RUS will initiate and conduct a periodic review and evaluation of 
the operations and maintenance practices of each borrower for the 
purpose of assessing loan security and determining borrower compliance 
with RUS policy as outlined in this **part**. This review will normally be 
done at least once every three years. The borrower will make available 
to RUS the borrower's policies, procedures, and records related to the 
operations and maintenance of its complete system. Reports made by other 
inspectors (e.g., other Federal agencies, State inspectors, etc.) will 
also be made available, as applicable. RUS will not duplicate these 
other reviews but will use their reports to supplement its own review. 
RUS may inspect facilities, as well as records, and may also observe 
construction and maintenance work in the field. Key borrower personnel 
responsible for the facilities being inspected are to accompany RUS 
during such inspections, unless otherwise determined by RUS. RUS 
personnel may prepare an independent summary of the operations and 
maintenance practices of the borrower. The borrower's management will 
discuss this review and evaluation with its Board of Directors.

Sec. 1730.25  Corrective action.

    (a) For any items on the RUS Form 300 rated unsatisfactory (i.e., 0 
or 1) by the borrower or by RUS, the borrower shall prepare a corrective 
action plan (CAP) outlining the steps (both short term and long term) 
the borrower will take to improve existing conditions and to maintain an 
acceptable rating. The CAP must include a time schedule and cost 
estimate for corrective actions, and must be approved by the borrower's 
Board of Directors. The CAP must be submitted to RUS for approval within 
90 days after the completion of RUS' evaluation noted in Sec. 1730.24.
    (b) The borrower must periodically report to RUS in writing progress 
under the CAP. This report must be submitted to RUS every six months 
until all unsatisfactory items are corrected unless RUS prescribes a 
different reporting schedule.

Sec. 1730.26  Engineer's certification.

    Where provided for in the borrower's loan documents, RUS may require 
the borrower to provide an ``Engineer's Certification'' as to the 
condition of the borrower's system (including, but not limited to, all 
mortgaged property.) Such certification shall be in form and substance 
satisfactory to RUS and shall be prepared by a professional engineer 
satisfactory to RUS. If RUS determines that the Engineer's Certification 
discloses a need for improvements to the condition of its system or any 
other operations of the borrower, the borrower shall, upon notification 
by RUS, promptly undertake to accomplish such improvements.

Secs. 1730.27-1730.99  [Reserved]

 Appendix A to Subpart B to **Part** 1730--Review Rating Summary, RUS Form 
                                   300

Borrower Designation ________
Date Prepared ________

    Ratings on form are:

0: Unsatisfactory--no records
    1: Unsatisfactory--corrective action needed
    2: Acceptable, but should be improved--see attached recommendations
    3: Satisfactory--no additional action required at this time
    N/A: Not applicable

            **PART** I--TRANSMISSION and DISTRIBUTION FACILITIES

1. Substations (Transmission and Distribution)
    a. Safety, Clearance, Code Compliance--Rating: ________

[[Page 304]]

    b. Physical Condition: Structure, Major Equipment, Appearance--
    Rating: ________
    c. Inspection Records Each Substation--Rating: ________
    d. Oil Spill Prevention--Rating: ________
2. Transmission Lines
    a. Right-of-Way: Clearing, Erosion, Appearance, Intrusions--
    Rating: ________
    b. Physical Condition: Structure, Conductor, Guying--Rating: 
________
    c. Inspection Program and Records--Rating: ________
3. Distribution Lines--Overhead
    a. Inspection Program and Records--Rating: ________
    b. Compliance with Safety Codes: Clearances--Rating: ________
    Compliance with Safety Codes: Foreign Structures--Rating: ________
    Compliance with Safety Codes: Attachments--Rating: ________
    c. Observed Physical Condition from Field Checking: Right-of-Way--
Rating: ________
    Observed Physical Condition from Field Checking: Other--Rating: 
________
4. Distribution--Underground Cable
    a. Grounding and Corrosion Control--Rating: ________
    b. Surface Grading, Appearance--
    Rating: ________
    c. Riser Poles: Hazards, Guying, Condition--Rating: ________
5. Distribution Line Equipment: Conditions and Records
    a. Voltage Regulators--Rating: ________
    b. Sectionalizing Equipment--
    Rating: ________
    c. Distribution Transformers--
    Rating: ________
    d. Pad Mounted Equipment--Safety: Locking, Dead Front, Barriers--
Rating: ________
    Pad Mounted Equipment--Appearance: Settlement, Condition--Rating: 
________
    e. Kilowatt-hour and Demand Meter Reading and Testing--Rating: 
________

                   **PART** II--OPERATION AND MAINTENANCE

6. Line Maintenance and Work Order Procedures
    a. Work Planning and Scheduling--
    Rating: ________
    b. Work Backlogs: Right-of-Way Maintenance--Rating: ________
    Work Backlogs: Poles--Rating: ________
    Work Backlogs: Retirement of Idle Services--Rating: ________
    Work Backlogs: Other--Rating: ________
7. Service Interruptions
    a. Average Annual Hours/Consumer by Cause (Complete for each of the 
previous 5 years)
1. Power Supplier ________
2. Major Storm ________
3. Scheduled ________
4. All Other ________
5. Total ________
    Rating: ________
    b. Emergency Restoration Plan--Rating:________
8. Power Quality
    General Freedom from Complaints--Rating:________
9. Loading and Load Balance
    a. Distribution Transformer Loading--Rating:________
    b. Load Control Apparatus--Rating:________
    c. Substation and Feeder Loading--Rating:________
10. Maps and Plant Records
    a. Operating Maps: Accurate and Up-to-Date--Rating:________
    b. Circuit Diagrams--Rating:________
    c. Staking Sheets--Rating:________

                          **PART** III--ENGINEERING

11. System Load Conditions and Losses
    a. Annual System Loses, ________%--Rating:________
    b. Annual Load Factor, ________%--Rating:________
    c. Power Factor at Monthly Peak, ________%--Rating:________
    d. Ratio of Individual Substation Peak kW to kVA, ________--
Rating:________
12. Voltage Conditions
    a. Voltage Surveys--Rating:________
    b. Substation Transformer Output Voltage Spread--Rating:________
13. Load Studies and Planning
    a. Long Range Engineering Plan--Rating:________
    b. Construction Work Plan--Rating:________
    c. Sectionalizing Study--Rating:________
    d. Load Data for Engineering Studies--Rating:________
    e. Load Forecasting Data--Rating:________

               **PART** IV--OPERATION AND MAINTENANCE BUDGETS

    For Previous 2 Years:

Normal Operation--Actual $________
Normal Maintenance--Actual $________
Total--Actual $________

    For Present Year:

Normal Operation--Budget $________
Normal Maintenance--Budget $________
Total--Budget $________

    For Future 3 Years:

Normal Operation--Budget $________
Normal Maintenance--Budget $________
Additional (Deferred) Maintenance--Budget $________
Total--Budget $________

    14. Budgeting:
Adequacy of Budgets For Needed Work--Rating:________

[[Page 305]]

    15. Date Discussed with Board of Directors ________
Remarks: ________

                            EXPLANATORY NOTES

Item No. ________ Comments ________
Rated by ________ ________ Title ________ Date ________
Reviewed by ________ Manager ________ Date ________
Reviewed by ________ RUS GFR ________ Date ________
```