Illinois Administrative Code › Title 83 - PUBLIC UTILITIES › Part 600 - STANDARDS OF SERVICE FOR WATER UTILITIES (GENERAL ORDER 24) › Subpart D - METER TESTING › Section 600.370 - Service to New Customers

Current through Register Vol. 48, No. 28, July 12, 2024
The utility shall extend service to customers under the following
				  terms and conditions:
a) The utility will
				provide all supply plant (backbone plant) at its cost and expense without requiring
				contributions or tap-on-fees from customers, developers or promoters, except in
				those unusual cases where extensive plant additions are required before customers
				can be attached. In such instances the utility may require the customer, developer
				and/or promoter to advance funds, subject to refund as customers are attached, or
				require a revenue guarantee in lieu of customers being attached. Each contract for
				such an advance or revenue guarantee shall be filed with the Commission for
				approval.
b) Unless other terms and
				conditions are formally approved by the Commission, the utility shall extend its
				water mains from the end of existing mains on the following terms and conditions:
1) Upon application being made for an extension of
				a water main, the utility shall determine the necessary size, location and
				characteristics of the main and of all valves, fittings and other appurtenances and
				shall make an estimate of the cost of the proposed extension, including pipe,
				valves, fittings, all other appurtenances and other materials and all other costs
				such as labor, permits, etc., including the utility's expense for supervision,
				engineering, insurance, tools and equipment, accounting and other overhead expenses.
				Extensions made under this Section shall be on the basis of a main size of eight (8)
				inches in diameter unless the requirements of the customer or customers to be served
				call for a larger main, in which case the cost shall be based on the larger main. In
				special cases, exceptions to the size of main can be made by the utility to comply
				with good engineering principles.
2) If
				the estimated cost of the extension is not greater than one and one-half (11/2)
				times the utility's estimate of annual revenue to be received from customers who
				will immediately attach to the extension, the utility will finance and make the
				extension without the requirement of any payment.
3) If the estimated cost of the extension exceeds
				one and one-half (11/2) times the utility's estimate of annual revenue to be
				received from customers who will immediately attach to the extension, the applicant
				or applicant's authorized agent shall contract for such extension and shall deposit
				with the utility the estimated cost of the extension less one and one-half (11/2)
				times such estimated annual revenue.
4)
				Original prospective customers to be considered in (2) and (3) above shall be those
				who sign a contract for at least one year's water service and guarantee to the
				utility that they will take water service at their premises within thirty (30) days
				after the date water is turned into the main, and whose street service connections
				are directly connected to the mains installed under said extension. Estimates of
				annual revenue shall be made by the utility and shall be the average revenue
				received from similarly situated customers. Where there are no similarly situated
				customers, the utility shall make an estimate of the annual bill.
5) The utility shall make refunds during the first
				ten (10) years after the date upon which the deposit aforesaid was made and only to
				the depositor, his successors or assigns, as follows:
A) Should the actual cost of the extension be less
				than the estimated cost, the utility shall refund the difference as soon as the
				actual cost has been ascertained. Should the actual cost of the extension exceed the
				estimated cost, the difference shall be used as an offset against any refunds that
				may become due pursuant to (B), (C) and (D) below.
B) Upon completion of the first yearly billing
				period of the original customers, for whom there were no similarly situated
				customers, as defined in subparagraph (4) above, the utility shall refund an amount
				equal to one and one-half (11/2) times the difference between the annual revenue
				originally estimated by the utility and the actual revenue received, provided the
				actual revenue is greater than the estimated revenue. If the actual revenue is less
				than the estimated revenue, the difference shall be used as an offset against
				revenues which would otherwise become the basis for refund pursuant to (C)
				below.
C) During the first ten (10)
				years from the date of the aforesaid deposit the utility shall refund, for each
				additional new customer taking service from said extension under a regular yearly
				contract, at the end of the first year's billing for service to such additional new
				customer, an amount equal to one and one-half (11/2) times the annual average water
				revenue of similarly situated customers. If there are no similarly situated
				customers, the utility shall refund one and one-half (11/2) times the actual annual
				revenue received.
D) If the extension
				abuts property which the applicant does not own or have an interest in, the utility
				shall pro-rate the cost of the extension on a front foot or per lot basis and, if
				during the term of the extension agreement the owner or occupant of such property
				requests water service, the utility shall collect from such new applicant an amount
				equal to his pro-rata cost of the extension less one and one-half (11/2) times the
				estimated annual revenue to be received from said new applicant. The utility shall
				refund money so collected to the original applicant, such refund being in addition
				to the refund provided for in paragraph (C) above.
E) The total amount refunded to the original
				applicant pursuant to paragraphs (A), (B), (C) and (D) above shall not exceed the
				original deposit, without interest, and the utility shall not require any deposit
				pursuant to the provisions of paragraph (D) in excess of the unrefunded deposit of
				the original applicant. At the expiration of said 10 year period the refund account
				will be closed and no further refunds will be made.
6) All mains, valves, fittings and other
				appurtenances and materials installed in accordance with this Section shall be and
				remain the sole property of the utility.
7) The utility shall have the right to further
				extend its mains from and beyond the terminus of each main extension made under this
				Section. The applicant making a deposit hereunder shall not be entitled to any
				refund on account of any other or further extension or the attachment of any
				services or hydrants to any other or further extension.
8) When the utility desires to install a main
				larger than eight inches (8") in diameter for a purpose other than the applicant's
				service requirements, then the utility shall pay the additional cost of the larger
				main.
9) All water main extensions,
				except those that may be installed by the utility without the necessity of a
				contract, will be made by contract with the applicant in accordance with the
				conditions of this particular Section as outlined above.
10) Any main extension agreement made pursuant to
				this Section and the right to refund thereunder shall not be assigned by the
				applicant without the prior written consent of the utility.