§ 57.19. Line extensions.
(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.
(f) Service to additional customers. Additional customers shall be connected to a line extension of a line already built or to a further extension of a line only upon the same terms and conditions as would apply if the extension were being made for customers including the new customers, if the inclusion of new customers would not increase the guarantees of the existing customers. If the guarantees of existing customers would be increased, the line extension constructed to serve additional customers shall be considered and treated as a new and separate line extension for these additional customers.
(g) Wiring and equipment of customers. Wiring and equipment on the premises of the customer shall be installed to conform with the rules and standards established by the public utility. The customer shall provide poles, wires and other construction necessary to bring the terminus of the customer’s installation to a location where it may be connected to a line extension by means of a service line.
(h) Underground electrical service in new residential developments. Extensions of underground electrical service in new residential developments, as defined in § 57.81 (relating to definitions), shall conform to § § 57.81—57.87.
Authority The provisions of this § 57.19 issued under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504 and 1501.
Source The provisions of this § 57.19 adopted February 25, 1946; amended through May 29, 1973; amended January 7, 1983, effective January 8, 1983, 13 Pa.B. 131; amended October 11, 1985, effective October 12, 1985, 15 Pa.B. 3646. Immediately preceding text appears at serial pages (80591) to (80592).
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