Florida Administrative Code › 25 - PUBLIC SERVICE COMMISSION › 25 - Departmental › Chapter 25-7 - GAS SERVICE BY GAS PUBLIC UTILITIES › Part IV - GENERAL SERVICE PROVISIONS › Section 25-7.054 - Extension of Facilities

Current through Reg. 50, No. 138; July 16, 2024
(1) Each utility
				  shall develop a standard policy governing the amount of main and/or service
				  extension which will be made free to connect a new customer. The amount of free
				  extension made should be related to the investment that can prudently be made
				  for the anticipated revenue to be received.
(2) A detailed statement of its standard main
				  extension policy shall be filed by each utility as part of its rules and
				  regulations. This policy shall have uniform application and shall be
				  non-discriminatory between consumers whose service requirements are
				  similar.
(3) If a utility and
				  consumer shall be unable to agree in regard to an extension, either party may
				  appeal to the Commission for a review. The Commission, unless special
				  circumstances prevent, will be guided by the following general principles:
(a) Free extensions. The maximum capital
				  investment to be made by the utility for main and service facilities without
				  cost to the customer shall be defined as the maximum allowable construction
				  cost. The maximum allowable construction cost shall equal four times the
				  estimated annual gas revenue to be derived from the facilities less the cost of
				  gas.
(b) Extensions above free
				  limit. When the cost of the extension required to provide service is greater
				  than the free limit specified in paragraph (a) above, the utility may require a
				  non-interest bearing advance in aid of construction of the cost in excess of
				  such free limit provided that:
1. At the end
				  of the first year the utility shall refund to the person paying the advance in
				  aid of construction or his assigns an amount equal to the excess, if any, of
				  the maximum allowable construction cost calculated using actual gas revenues,
				  less the actual cost of gas, over the maximum allowable construction cost used
				  to determine the amount of the advance in aid of construction.
2. For each additional customer taking
				  service at any point on the extension within a period of five (5) years from
				  date of construction, the utility shall refund to the person paying the advance
				  in aid of construction or his assigns an amount by which the maximum allowable
				  construction cost for the new customer exceeds the cost of connecting the
				  customer, provided that an additional main extension shall have not been
				  necessary to serve the additional customer.
3. The aggregate refund to any customer made
				  through the provisions of subparagraphs 1. and 2. above shall at no time exceed
				  the original advance in aid of construction of such customer.
4. The extension shall at all times be the
				  property of the utility and any unrefunded portion of the advance in aid of
				  construction at the end of five (5) years shall be credited to the plant
				  account of the utility.
(c) Nothing in this subsection (3) shall be
				  construed as prohibiting any utility from establishing extension policies more
				  favorable to consumers so long as no discrimination is practiced between
				  consumers.