New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter III - GAS UTILITIES › Subchapter A - Service › Part 230 - Extension Of Mains And Service Lines-gas Corporations › Section 230.3 - Charges for additional facilities

Current through Register Vol. 46, No. 28, July 10, 2024
(a) If, in order to provide service to an
				  applicant, the gas corporation must install mains and appurtenant facilities in
				  addition to those required to be provided without charge under section
				  230.2  of
				  this Part, the corporation shall impose a surcharge subject to the following
				  provisions.
(1) The surcharge relating to
				  mains and appurtenant facilities including return, depreciation, taxes and
				  maintenance shall not exceed 20 percent per year of the actual reasonable cost
				  of such facilities that exceeds the portion which the corporation is required
				  to install without charge to an applicant, if the corporation lays a main of
				  four inches or less in nominal diameter (in the case of low pressure
				  distribution) or of two inches or less in nominal diameter (in the case of high
				  pressure distribution). If the corporation lays a main greater than four inches
				  in nominal diameter (in the case of low pressure distribution) or greater than
				  two inches in nominal diameter (in the case of high pressure distribution), the
				  surcharge shall not exceed 20 percent per year of the estimated reasonable cost
				  of a four-inch main (in the case of low pressure distribution), unless the
				  estimated consumption of the proposed customer(s) requires the installation of
				  a larger-sized main, in which event the surcharge shall not exceed 20 percent
				  per year of the actual reasonable cost of such main. The surcharge shall
				  commence when gas service is first available to an applicant and shall be paid
				  ratably for each billing period.
(2) The surcharge shall be reduced by 50
				  percent of adjusted gas revenues, but the credit shall not exceed the amount of
				  the surcharge as determined above.
(3) Whenever more than one customer is
				  connected to a main extension, the surcharge shall be so adjusted that the
				  corporation shall not receive in any one calendar year a greater percentage
				  from all customers served from the main extension than that applicable to such
				  extension. The surcharge shall also be reasonably allocated among the customers
				  being served from the main extension, taking into account the portion of mains
				  and appurtenant facilities which the corporation is required to provide without
				  charge to each customer served from such facilities.
(4) Each surcharge shall cease:
(i) whenever the length of a main extension
				  required to be provided without charge to all customers served from such
				  extension shall equal or exceed the total length of such extension;
(ii) whenever the total adjusted gas revenue
				  from all customers served from a main extension shall equal or exceed 40
				  percent of the cost of such extension in excess of that required to be provided
				  without charge, in each of any two consecutive calendar years; or
(iii) after a period of 10 years following
				  its commencement.
(5)
				  Should the adjusted gas revenue from all customers served from a main extension
				  exceed the carrying cost of the entire extension, any surcharges (or
				  contributions) paid by such customers during the preceding five years shall be
				  refunded to such customers.
(6) No
				  surcharge shall be imposed if the total adjusted gas revenue from all customers
				  served from a main extension is estimated to exceed 40 percent of the actual
				  reasonable cost of such extension in each of any two consecutive calendar
				  years.