N.Y. Comp. Codes R. & Regs. tit. 16 § 98.3

Current through Register Vol. 46, No. 25, June 18, 2024

Section 98.3 - Charges for providing additional facilities and for acquiring rights-of-way

(a) If, in order to provide nonresidential service or residential service to a non-residing applicant, a utility must install or provide for the installation of distribution lines, service lines and appurtenant facilities, in addition to those required to be provided without contribution under section 98.2 of this Part, the utility shall impose a lump-sum charge on the applicant for such facilities that exceed the portion which the utility is required to provide without contribution to the applicant. For a nonresiding applicant in a residential subdivision requiring underground service, this lump-sum charge shall be determined by subtracting the total free footage allowance from the total footage of distribution line, service line and appurtenant facilities (other than those accounted for in accounts 368 and 370) to be installed and multiplying the remaining distribution and service footage by the applicable experienced average cost per foot of the installing utility as reported pursuant to section 98.6(b)(1) of this Part and set forth in the utility's tariff. For an applicant for nonresidential service or for a nonresiding applicant not in a residential subdivision requiring underground service, the lump-sum charge relating to distribution lines, service lines and appurtenant facilities (other than those accounted for in accounts 368 and 370) shall be determined as set forth in the utility's tariff.

(b) If, in order to provide service to a residing applicant, a utility must install or provide for the installation of a distribution line, a service line and appurtenant facilities (other than those accounted for in accounts 368 and 370) in addition to those required to be provided without contribution under section 98.2 of this Part, the utility shall impose a lump-sum charge or a charge subject to the provisions in subdivision (e) of this section, at the option of the applicant. For a residing applicant, the lump-sum charge relating to a distribution line, a service line and appurtenant facilities (other than those accounted for in accounts 368 and 370) shall be determined as set forth in the utility's tariff.

(c) If an applicant for nonresidential service or a nonresiding applicant chooses, pursuant to section 98.2(b)(1)(ii) of this Part, to pay a utility for acquiring the necessary R/W, the utility shall impose a lump-sum charge on the applicant to cover the reasonable actual costs of acquiring such R/W.

(d) If a residing applicant chooses pursuant to section 98.2(b)(1)(ii) of this Part to pay a utility for acquiring the necessary R/W, the utility shall impose on the applicant either a lump-sum charge or a charge subject to the provisions of subdivision (e) of this section, at the applicant's option, to cover the reasonable actual costs of acquiring such R/W.

(e) If a residing applicant has chosen not to pay a lump-sum amount, a utility shall impose a surcharge relating to the material and installation costs of distribution lines, service lines, and appurtenant facilities (other than those accounted for in Accounts 368 and 370) and to R/W acquisition costs, subject to the following provisions:

(1) the surcharge shall be applicable for 10 years, shall be computed as specified in individual utility tariffs approved by the commission and shall be paid annually or rateably for each billing period;

(2) if more than one customer is to be served from new overhead distribution lines and the length of the lines requested exceeds such customers' aggregate entitlement (that is, the number of customers multiplied by 500 feet or 300 feet -- for single-phase and three-phase service, respectively) the excess length shall be prorated among the customers for purposes of calculating the surcharge in paragraph (1) of this subdivision;

(3) after the commencement of service from a new overhead distribution line whenever the aggregate entitlement of the customers then served from the line (that is, the number of customers multiplied by 500 feet or 300 feet -- for single-phase and three-phase service, respectively) equals or exceeds the length of the distribution line initially constructed, the surcharge shall terminate as to all customers served from the distribution line;

(4) whenever the total revenue in each of any two consecutive calendar years from all customers served from a new overhead distribution line exceeds 1.5 times the reasonable actual capital cost of the total distribution line, all surcharges shall cease;

(5) no surcharges shall be imposed if the total estimated revenue in each of any two consecutive calendar years from all customers served from a new distribution line exceeds 1.5 times the reasonable actual capital costs of the total distribution line; and

(6) customers who are currently paying a surcharge may, at their option convert to a 10-year surcharge, with years and amounts already paid credited, or be relieved of their surcharge, if their payments meet or exceed the installation costs of their facilities.

(f) If an applicant on whom a utility has imposed a surcharge, in accordance with subdivision (e) of this section, changes his or her ownership of the residence after the imposition of such surcharge, the utility may collect the remainder of the surcharge from any new successor owner provided the utility provides in its surcharge agreement in bold face type: APPLICANT HEREBY AGREES TO INFORM ALL PROSPECTIVE PURCHASERS OF THIS PROPERTY THAT A UTILITY SURCHARGE IS IN EFFECT.

(g) If facilities are extended to provide service to a residing applicant who pays a lump-sum charge pursuant to subdivision (b) of this section, and other applicants subsequently take service from such facilities within 10 years, the first residing applicant shall receive a refund in accordance with each utility's tariff.

(h) If a nonresiding applicant has paid a lump-sum charge pursuant to subdivision (a) of this section and if, after the underground distribution system construction is completed, additional dwelling units are constructed and take service from such system within the residential subdivision boundaries as defined on the map submitted pursuant to section 98.2(d) of this Part, the utility shall recalculate the charge paid pursuant to subdivision (a) of this section as if the additional dwelling unit(s) had been constructed at the time of the utility's original construction within the residential subdivision and make an appropriate refund of such charge without interest. Any portion of the charge remaining unrefunded five years after the date on which the utility is first ready to render service from the distribution system shall be retained by the utility and credited to the appropriate plant accounts.

(i) Where a residing applicant has chosen to pay a surcharge pursuant to subdivision (b) of this section, such applicant shall at any time, have the option of paying the outstanding balance in a lump sum.

N.Y. Comp. Codes R. & Regs. Tit. 16 § 98.3