Oklahoma Administrative Code › Title 165 - Corporation Commission › Chapter 45 - Gas Service Utilities › Subchapter 3 - Plant, Equipment, and Facilities › Section 165:45-3-4 - Extension of distribution mains

Current through Vol. 41, No. 20, July 1, 2024
(a)
General.
A utility shall
				extend its distribution mains to serve consumers within the corporate limits of
				a municipality served by the utility, or any recorded addition thereof, or
				within a reasonable distance from the utility's existing distribution system in
				accordance with the provisions of this Chapter.
(b)
Free extensions.
A utility
				shall extend its distribution system, as needed, up to one hundred feet (100')
				per residence without cost to the "party" requesting service. In arriving at
				the length of such main extension necessary to render service to the party, the
				distance shall be measured along lines of proper construction from the nearest
				distribution main with adequate capacity.
(c)
Extension above free limit -
				advance.
If the extension necessary to furnish service is greater than
				allowed as a free extension under subsection (b) of this Section, a utility may
				require an advance of the cost of the main extension over the free limit.
				However, the utility shall not arbitrarily or with disparity impose the
				obligation of requiring an advance, but rather shall determine whether to
				require an advance and the amount thereof on a caseby-case basis. Whenever such
				advance is made, the utility shall be required to refund to the party who made
				the advance an amount equal to the cost of one hundred feet (100') of free
				extension for each additional consumer whose service line is connected to such
				main within a period of ten (10) years from the making of the extension. No
				refunds shall be made for consumers connected to future extensions tied into
				such an extension. This refund will cease after ten (10) years from the making
				of the extension but the total of all refunds shall not exceed the original
				advance. The advance shall not draw interest.
(d)
Extensions above free limit -
				revenue basis.
The Commission may authorize a utility to make extensions
				above the free limit upon receipt of a lesser advance, or no advance, when the
				gross anticipated annual revenue from an extension will provide the utility
				with an adequate return on its investment pursuant to a formula or other method
				approved by the Commission. After such authorization, the utility shall make
				extensions when requested by the party pursuant to such approved formula or
				method.
(e)
Extension above
				free limit - special contract.
In lieu of making an extension pursuant
				to subsections (c) or (d) of this Section, a utility may make an extension
				above the free limit with a lesser advance or no advance, when the utility has
				entered into an agreement whereby the party proposing to provide the advance
				guarantees a minimum annual revenue from the extension to the utility. Such an
				agreement shall be deemed a special contract governed by OAC
				165:45-15-2.
(f)
Determining cost of
				extension.
In determining the amount of advance, if any, which shall be
				made for an extension pursuant to this Section, the total construction cost of
				the extension shall first be determined in accordance with the approved system
				of accounts for gas utilities and from such total construction cost there shall
				be deducted:
(1) Costs incident to any
				increase in size of the main in excess of that required to adequately and
				satisfactorily provide service, costs incident to future expansion or to
				continue a construction plan of the utility, and costs necessary to correct
				inadequate capacity.
(2) The total
				construction cost of that portion of the extension constituting a free
				extension, which includes meters, service regulators, stopcocks, and service
				connections.