65- 407 C.M.R. ch. 395, § 10

Current through 2024-25, June 19, 2024

Section 407-395-10 - Line Extension Charges for Transmission and Distribution Utilities

A.Methodology

1.Single-Phase Line Extensions. Unless the Commission decides otherwise pursuant to order, a transmission and distribution utility may only charge customers for a single-phase electric distribution line extension as follows:

a.Line Extension Charges. Line extension charges shall be a pre-established per foot charge based on the prior year's pre-established per foot charge adjusted annually by the Handy Whitman index and further adjusted, as necessary, for known cost changes not captured by the Handy Whitman index. The line extension charges pursuant to this provision shall exclude tree trimming, ledge work, and make-ready costs. There shall be separate per foot charge for overhead and underground electric distribution line extensions.

b.Tree Trimming. If tree trimming or vegetation removal is required, tree trimming charges shall be a pre-established charge per span based on the weighted average contract rates that a transmission and distribution utility pays its contractors that perform such work at the time that such work is performed.

c.Ledge Work. If ledge work is required, ledge work charges shall be a pre-established charge per ledge pole installation, ledge anchor installation and per ledge push brace installation based on the weighted average contract rates that a transmission and distribution utility pays its contractors that perform such work at the time that such work is performed.

2.Polyphase Line Extensions. Unless the Commission decides otherwise pursuant to order, a large transmission and distribution utility may only charge customers for a polyphase electric distribution line extension based on the design costs of the actual route as specified in the large transmission and distribution utility's terms and conditions in effect at the time of the effective date of this Chapter.

B.Telephone Contribution. Revenues received by a transmission and distribution utility from a telephone utility may not be used to offset or reduce the amount charged to a customer for an electric distribution line extension.

C.Make-Ready Work. Unless the Commission decides otherwise pursuant to order, a transmission and distribution utility shall charge a customer taking polyphase service the actual costs of make-ready work associated with that customer's service. For make-ready work begun after August 30, 2012 a transmission and distribution utility may not charge a customer taking single-phase service for make-ready work associated with that customer's service.

D.Cost Recovery. Any costs associated with construction of an electric distribution line extension, including overhead costs, that are not recovered by a transmission and distribution utility through the charges established in accordance with this Section shall not be recovered in rates charged to the ratepayers of the transmission and distribution utility. Notwithstanding this provision, a transmission and distribution utility may recover costs associated withsingle-phase service make-ready work in rates charged to the ratepayers of the transmission and distribution utility.

E.Applicability. The provisions of this section do not apply to Consumer-owned transmission and distribution utilities.

F.Annual Reports

1.Filing Date. On February 1 of each year, a transmission and distribution utility shall submit an annual report to the Commission on electric distribution line extension costs and revenues associated with jobs that have been completed and closed out during the prior calendar year.

2.Report Contents. The annual report shall contain the following information on a total service territory basis and, if reasonably available, by service center. All costs and charges may exclude return on investment, administrative support adders, and contribution in aid of construction. Costs and charges that include return on investment, administrative support adders, and contribution in aid of construction shall be provided if reasonably available. All costs and charges will be provided on a comparable basis.

a.Single-phase overhead distribution line extensions. For single-phase, overhead, primary voltage electric distribution line extensions (excluding jobs with low-income credit adjustments):

(i) The total amount charged to customers;

(ii) The total costs to the transmission and distribution utility to complete those line extensions

(iii) The total number of those jobs;

(iv) The total length, in feet, of those jobs;

(v) The prior year's pre-established per foot charge adjusted by the Handy Whitman index and further adjusted, as necessary, for known cost changes not captured by the Handy Whitman index.

b.Single-phase, underground electric distribution line extensions. For single-phase, underground electric distribution line extensions (excluding jobs with low-income credit adjustments):

(i) The total amount charged to customers;

(ii) The total costs to the transmission and distribution utility to complete those line extensions;

(iii) The number of those jobs;

(iv) The total length, in feet, of those jobs;

(v) The prior year's pre-established per foot charge adjusted by the Handy Whitman index and further adjusted, as necessary, for known cost changes not captured by the Handy Whitman index.

c.Polyphase electric distribution line extensions. For polyphase electric distribution line extensions:

(i) The total amount charged to customers;

(ii) The total costs to the transmission and distribution utility to complete those polyphase;

(iii) The number of those jobs;

(iv) The total length, in feet, of those jobs;

d.Tree trimming. For single-phase line extension jobs that included tree trimming (excluding any jobs with low-income credit adjustments for tree trimming):

(i) The total amount charged to customers for tree trimming;

(ii) The total costs to the transmission and distribution utility to complete that tree trimming;

(iii) The total number of spans trimmed;

(iv) The individual contract rates that a transmission and distribution utility will pay its contractors for tree trimming during the upcoming construction season.

eLedge work. For single-phase line extension jobs that include ledge work (excluding any jobs with low-income credit adjustments for ledge work):

(i) The total amount charged to customers for ledge work;

(ii) The total costs to the transmission and distribution utility to complete that ledge work;

(iii) The individual contract rates that a transmission and distribution utility currently will pay its contractors for each type of ledge work during the upcoming construction season.

f. The total labor costs related to single-phase overhead electric distribution line extensions and single-phase underground electric distribution line extensions, excluding contractor charges;

g. The total materials costs related to single-phase overhead electric distribution line extensions and single-phase underground electric distribution line extensions, excluding contractor charges;

h. The total transportation costs related to single-phase overhead electric distribution line extensions and single-phase underground electric distribution line extensions, excluding contractor charges;

i. The total amount of contractor charges related to single-phase overhead electric distribution line extensions and single-phase underground electric distribution line extensions

j. Any other relevant information as determined by the Commission.

k. The information required by this subsection shall be provided in the following format:

		Single-Phase, Primary Voltage
		Overhead	Underground
# line extension jobs
Length (feet)
Line Extension	Total Base Charges to Customers
	Total Full Charges to Customers
	Total Base Cost to Utility
	Total Full Cost to Utility
Trim	# of spans trimmed
	Individual contract rates for trim
	Total Base Charges to Customers
	Total Full Charges to Customers
	Total Base Cost to Utility
	Total Full Cost to Utility
Ledge	# of poles involving ledge
	# of braces involving ledge
	# of anchors involving ledge
	Individual contract rates for ledge work
	Total Base Charges to Customers
	Total Full Charges to Customers
	Total Base Cost to Utility
	Total Full Cost to Utility
Labor Cost (excluding contractor costs)
Material Costs (excluding contractor costs)
Contractor Costs
Total # of Jobs with Low-Income Credit Adjustments
Total Base Amount of Low Income Adjustments
Total Full Amount of Low Income Adjustments

G.Investigation/Establishment of Charges

1. Within 30 days of the filing of the annual report pursuant to subsection F, the Commission shall open an investigation to determine the amount to be charged during the upcoming construction season so that the total amount charged to customers will reasonably likely be no less than 95% and no more than 105% of total actual costs for the line extensions. The Commission shall provide notice of any investigation opened pursuant to this subsection to the Office of the Public Advocate and interested persons.

2. If the annual report filed pursuant to subsection F indicates that total charges to customers for single-phase overhead electric distribution line extensions or single-phase underground electric distribution line extensions are less than 95% of total actual costs or greater than 105% of total actual costs not including make-ready costs (actual costs are the total costs less an amount equal to the number of jobs multiplied by the make-ready charge) during the reporting period, the Commission will adjust the prior year's pre-established per foot charge so that the charge would have recovered 100% of the year's total actual costs and further adjust the charge by the Handy Whitman index and, as necessary, for known cost changes not captured by the Handy Whitman index.

3. If an annual report filed pursuant to subsection F indicates that total charges to customers for single-phase overhead electric distribution line extensions or single-phase underground electric distribution line extensions are within 95% and 105% of total actual costs not including make-ready costs (actual costs are the total costs less an amount equal to the number of jobs multiplied by the make-ready charge) during the reporting period, the Commission will adjust the prior year's pre-established per foot charge by the Handy Whitman index and, as necessary, for known cost changes not captured by the Handy Whitman index.

4 Notwithstanding the prior provisions in this subsection, the Commission may, based on the information provided in the annual report or provided after the submission of the annual report, determine whether additional adjustments should be made to the pre-established charge for single-phase electric distribution line extensions so that the charge will be reasonably likely to be no less than 95% and no more than 105% of total actual costs for the line extensions.

5. The Commission may initiate an investigation, at any time, to consider changes to the pre-established per foot charges or other line extension charges and direct changes to the pre-established per foot charges or other line extension charges if it finds that such changes are necessary so that line extension charges are within 95% and 105% of total actual costs.

65- 407 C.M.R. ch. 395, § 10