Title
Resolution - Approval to Amend Tariff and Business Rules - Line Extension Policy - D Thompson / N Mack
Other Info
Submitted By: Robyn Miller on behalf of David Thompson
Department: Markets
Financial Impact and Cost/Benefit Considerations:
Expenditure of Cooperative funds is anticipated to be reduced in total by approximately $330,000 per year. The anticipated reduction in expenditure of Cooperative funds breaks down as follows:
* $100,000 per year attributed to residential upgrades
* $100,000 per year attributed to other residential
* $30,000 per year attributed to other non-residential
* $100,000 per year attributed to service upgrades
Expenditures of staff time anticipated to be reduced due to process standardization.
Discussion
The Board approved amendments to the Cooperative's Line Extension Policy in the Tariff and Business Rules (the "Tariff") at the October 2019 Board meeting. The approvals in October addressed primarily commercial line extensions and were the first part of the Cooperative's Cost of Service Study Review of the Line Extension Policy.
The amendments to the Line Extension Policy include clarifications throughout this Policy for consistency and include the following, which are found in the blue boxes located within the text of the proposed draft Tariff. These changes are proposed to be effective June 1, 2020.
* Adjust the Contribution in Aid of Construction (CIAC) for Section 400.5, Other Non-Residential Service, from a flat $800 allowable investment to a $0 allowable investment.
* Adjust the CIAC for Section 400.3, Other Residential Service, from a flat $800 allowable investment to a $0 allowable investment.
* Specify that all service upgrades, residential and non-residential, receive no allowable investment from the Cooperative.
* Clarify that residential service is intended to be for a Member's primary residence that qualifies or will qualify within a twelve (12) month time period for a homestead exemption with the Member'...
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