Current through Register Vol. 54, No. 21, May 25, 2024
Section 65.21 - Duty of public utility to make line extensionsEach public utility shall file with the Commission, as part of its tariff, a rule setting forth the conditions under which facilities will be extended to supply service to an applicant within its service area. Upon request by a bona fide service applicant, a utility shall construct line extensions within its franchised territory consistent with the following directives:
(1) Line extensions to bona fide service applicants shall be funded without customer advance if the annual revenue from the line extension will equal or exceed the utility's annual line extension costs.(2) If the annual revenue from the line extension will not equal or exceed the utility's annual line extension costs, a bona fide service applicant may be required to provide a customer advance to the utility's cost of construction for the line extension. The utility's investment for the line extension shall be the portion of the total construction costs which generate annual line extension costs equal to annual revenue from the line extension. The customer advance amount shall be determined by subtracting the utility's investment for the line extension from the total construction costs.(3) The utility's investment for the line extension shall be based on the following formula, where X equals the utility's investment attributed to each bona fide applicant: | X | = [AR - OM] divided by [I + D] ; and, |
| AR | = the utility's annual revenue |
| OM | = the utility's operating and maintenance costs |
| I | = the utility's current debt ratio multiplied by the utility's weighted long-term debt cost rate |
| D | = the utility's current depreciation accrual rate |
The provisions of this § 65.21 adopted February 14, 1997, effective 2/18/1997, 27 Pa.B. 799.The provisions of this § 65.21 issued under the Public Utility Code, 66 Pa.C.S. § § 501, 504-506, 1301 and 1501.