Pennsylvania Code › Title 52 - PUBLIC UTILITIES › Part I - Public Utility Commission › Subpart C - Fixed Service Utilities › Chapter 57 - ELECTRIC SERVICE › Subchapter B - SERVICE AND FACILITIES › Section 57.19 - Line extensions

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Definitions.
The following words and terms, when used in this
					 section, have the following meanings, unless the context clearly indicates
					 otherwise:
Contractor cost
-The amount paid by a
						public utility to a contractor for work performed on a line extension.
Direct labor cost
-The pay and expenses
						of public utility employes directly attributable to work performed on line
						extensions, but does not include construction overheads or payroll taxes,
						workmen's compensation expenses or similar expenses.
Direct material cost
-The purchase price
						of materials used for a line extension, but does not include related stores
						expenses. In computing direct material costs proper allowance should be made
						for unused materials, materials recovered from temporary structures, and
						discounts allowed and realized in the purchase of materials.
Maximum extension distance
-The distance
						in feet below which a public utility will provide a line extension without
						imposing a charge on or requiring a revenue guarantee from the customer
						requesting the extension.
(b)
Duty to make line
					 extensions.
The public utility shall make line extensions within the
					 territory in which it is authorized to operate.
(c)
Tariffs to include line extension
					 rule.
The public utility shall file with the Commission as part of
					 its tariffs a rule setting forth its maximum extension distance for
					 single-phase line extensions and the conditions under which it will make the
					 line extensions beyond this distance. The rule shall also include a plan
					 whereby the public utility will construct, operate, and maintain single-phase
					 and polyphase line extensions required to serve customers who will guarantee
					 revenues in an amount sufficient to comply with the requirements set forth in
					 the rule, and a statement of the terms upon which the guarantee shall be
					 reduced to the minimum charges as provided in the rate schedules applicable to
					 each class of service supplied.
(d)
Determination of guarantees for single-phase line extensions.
The amount of revenue to be guaranteed and subsequent changes thereto shall be
					 determined solely on the basis of contractor costs, direct labor costs and
					 direct material costs attributable to the construction of the line extension
					 beyond the maximum extension distance. Appropriate adjustments shall be made at
					 least annually in the amount of revenue guaranteed by a customer by reason of
					 change in the number or classification of customers supplied from the line
					 extension. The amount of costs attributable to the construction of a line
					 extension below the maximum extension distance may be determined by multiplying
					 the cost of the line extension by the percentage of distance of the line
					 extension below the maximum extension distance.
(e)
Determination of guarantees for
					 polyphase line extensions.
In determining the revenues originally to
					 be guaranteed and subsequent changes, the following conditions shall be
					 applicable, as appropriate:
(1) Guarantees of
					 revenue shall be based upon the total construction cost to the public utility
					 of the line extension.
(2)
					 Guarantees of revenue shall be based upon the length of pole line required to
					 furnish service.
(3) Guarantees
					 shall be based upon a reasonable plan by which the construction cost, length of
					 line extension, or number of customers served or to be served from the line
					 extension are given consideration.
(4) Appropriate adjustments shall be made at
					 least annually in the amount of revenue guaranteed by the customer by reason of
					 change in the number or classification of customers supplied from the line
					 extension.