CONSTRUCTION AND EXTENSION OF ELECTRIC SERVICE
I. OBJECTIVE
To set forth the terms and conditions under which the Cooperative will construct and extend its facilities to provide electric service for the benefit of the member-consumer.
II. CONTENT
A. Construction Requirements
1. The electric plant of the Cooperative shall be constructed, installed, maintained and operated in accordance with RUS standards and accepted engineering practices in the electric industry to assure, as far as reasonably possible, continuity of service, uniformity in quality of service furnished and the safety of persons and property.
2. The Cooperative shall use, as the minimum standard of accepted practice, the National Electrical Safety Code as prescribed by the statutes of the State of South Dakota or as the same may be amended.
3. The type and character of construction, capacity requirements, location of the origin, and the route to be followed in the construction of an extension shall be determined by the Cooperative after due consideration of the engineering problems involved, with the objective of providing the best service possible. The origin need not necessarily be at the point on the existing distribution system most proximate to the member-consumer's premises, nor the route selected the shortest distance between the origin and the delivery point.
4. Prior to the construction of new facilities to serve a member-consumer, the provisions specified in this policy shall be used to determine any required contribution-in-aid-of-construction (CIAC). If the Cooperative determines that a contribution-in-aid-of-construction is necessary, payment or payment arrangements for the contribution-in-aid-of-construction shall be made prior to the construction and extension of electric service. As with any contribution-in-aid-of-construction payment, the Cooperative retains ownership of the facilities involved and the Cooperative is responsible for any future maintenance and/or ordinary replacements.
a. Management shall be authorized to negotiate payment arrangements for contributions. Payment arrangement options that spread payments over an extended period of time shall include a termination clause to guarantee payment of the contribution in the event electric service is discontinued.
B. Post-Disaster Construction Specifications, Codes and Standards
1. In the aftermath of a major storm which has caused significant damage to existing overhead pole line, the Cooperative will assess the extent of the damage to determine whether the damaged portion of the overhead pole line will be rebuilt or replaced with underground facilities. It shall be the practice of the Cooperative to rebuild or replace any storm damaged overhead pole line based on the following minimum construction specifications, codes and standards rather than rebuild the overhead pole line to the former specifications, codes and standards:
a. Single-Phase Overhead Pole Line Construction
b. Three-Phase Overhead Pole Line Construction
c. Single-Phase Underground Line Construction
d. Three-Phase Underground Line Construction
2. It is the Cooperative’s intention to improve and upgrade the distribution system to meet these minimum specifications, codes and standards; however, the first priority in the aftermath of any major storm is to restore power as expeditiously and safely as possible.
3. Management will make the decision to replace overhead pole line with either overhead pole line or underground facilities after restoring service and taking into consideration the damage to the overhead pole line, the Long Range Engineering Plan and the number of members and the types of loads to be impacted.
C. General Terms and Conditions
1. The Cooperative shall install and maintain the electric distribution lines and all equipment up to and including the meter, which may be located either on a building, a Cooperative-owned pole or a Cooperative-owned underground pedestal.
a. Where requested by the member-consumer, the Cooperative shall install, own, operate and maintain load control receivers on the member-consumer's side of the meter in conjunction with the load management program.
2. For safety purposes, the installation of a double throw disconnect switch shall be a pre-requisite to a member-consumers operation of a standby generator. For a generator with a capacity of 5 kW or greater, the Cooperative shall furnish a double-throw disconnect switch at no cost to the member-consumer for single-phase service only. For a generator with a capacity of less than 5 kW, a contribution-in-aid-of-construction equal to $1,000.00 shall apply.
3. For each service classification, the Cooperative shall provide single or three-phase electric service under the applicable rate schedule at the meter location, or delivery point, to be agreed upon by the Cooperative and the member-consumer as the best load center available. The terms, rates and conditions of service may be formulated into a contractual agreement with the member-consumer prior to the installation of the service.
D. Contributions-In-Aid-of-Construction and Other Requirements
1. Single-Phase Service. The following applies to single-phase line extensions for new service. Additional criteria apply to seasonal services, see applicable policy provisions.
a. The contribution-in-aid-of-construction shall consist of the following charges. Per foot charges shall apply to both primary and secondary line extensions.
Flat Charge........................................................... $400.00, plus
Per Foot Charge:
First 600 feet...................................................... $0.00 per foot
Over 600 feet...................................................... $2.00 per foot
Any incidental charges directly related to the line extension such as road bores, winter conditions, county permits and/or crossing fees shall be added to and included in the contribution-in-aid-of-construction. If the member-consumer requests an underground disconnect, a charge of $1,000.00 shall apply to help defray the additional costs.
b. Any new request for electric service with above normal load requirements may be required to accept three-phase service by the Cooperative in lieu of single-phase service. In making the determination between single and three-phase service, the Cooperative will take into consideration the following load characteristics and existing distribution system capabilities:
(1) Overhead versus underground service;
(2) Transformer capacity requirements and limitations;
(3) Wire size limitations;
(4) Amperage limitations;
(5) Diversity within the new services load requirements;
(6) Existing load requirements on the nearest single-phase circuit.
c. The maximum allowable transformer capacity for a single-phase service shall be 100 kVA.
d. For developments or platted subdivisions, see applicable section of this policy.
2. Three-Phase Service to Non-biddable Load. The following applies to three-phase line extensions for new services. Additional criteria apply to seasonal services, see applicable policy provisions.
a. The contribution-in-aid-of-construction shall consist of the following charges. Per foot charges shall apply to both primary and secondary line extensions.
Flat Charge (1).................................................. $2,000.00, plus
Capacity Charge (2)................................................. $6.50 per amp, plus
Per Foot Charge: (3)
First 1,200 feet................................................... $1.00 per foot
Over 1,200 feet................................................... $5.00 per foot
(1) Based on the size of the electrical panel.
(2) When 300 amp underground primary line is deemed appropriate by the Cooperative, the applicable Per Foot Charge shall be doubled.
(3) Any incidental charges directly related to the line extension such as road bores, winter conditions, county permits and/or crossing fees shall be added to and included in the contribution-in-aid-of-construction.
(4) If the Cooperative determines that the construction of the new service line extension would provide a specific benefit to the distribution system, the contribution-in-aid-of-construction may be modified accordingly to take into consideration those betterment costs as determined by management.
b. The Cooperative may require that a written contract be executed between the Cooperative and the member-consumer prior to the installation of the service.
c. For loads in excess of 150 kVA, the member-consumer may be required to furnish and install a secondary transition cabinet next to the transformer with a connective raceway between them. The Cooperative shall furnish and install the conductor between the transformer and transition cabinet and be fully responsible for all connectors and connections in the transformer. The member-consumer shall furnish the connectors inside the transition cabinet. The member-consumer shall furnish and install a cement pad for the transformer in accordance with the Cooperative’s specification.
3. Three-Phase Service to Biddable Load. The following applies to all line extensions to serve large three-phase services, such as an ethanol plant, classified as a biddable load under SDCL.
a. As a biddable load, management shall have the authority to negotiate the cost recovery methodology for the service investment required to serve the load. Cost recovery methods may vary from a full contribution-in-aid-of-construction with no initial investment cost recovery built into the rate to no contribution-in-aid-of-construction with full investment cost recovery built into the rate.
b. The extent of investment cost recovery considered during the negotiation process shall be based on various criteria including:
(1) The amount of the initial service investment;
(2) The viability of the industry requesting service;
(3) The risk associated with the investment;
(4) Any other factors deemed appropriate.
c. The Cooperative shall require that a written Electric Service Agreement be executed between the Cooperative and the member-consumer prior to the installation of the service.
4. Seasonal Service. All line extensions to new seasonal services, including grain drying and irrigation, shall require a contribution-in-aid-of-construction based on the previous provisions of this policy as applicable plus an additional $5.00 per amp of the electrical panel size. The following additional criteria also apply to all line extensions to new irrigation services.
a. Members requesting irrigation service must show satisfactory permits and tests on the availability of water, both in quantity and quality, suitable for long-range irrigation practices.
b. The Cooperative may require that capacitors rated at 480 volts and sized to the horsepower rating of the pumping unit be connected on the line side of the motor starter.
c. For electric service to operate only irrigation pivot motors, the member-consumer shall furnish and install the secondary service wire from the pivot to a location specified by the Cooperative.
5. Multiple-Voltage Service. When more than one electric service is requested to accommodate multiple voltages for the same location, the contribution-in-aid-of-construction shall include the normal contribution-in-aid-of-construction based on this policy plus an estimate of the entire installation costs associated with any additional electric service(s) including metering and transformation.
6. Service Upgrade. Member-consumers may upgrade the size of their electrical panel to a maximum of 400 amps without incurring any related charges from the Cooperative for increasing the size of their transformation. For existing services where the member-consumer’s load requirements justify upgrading the size of their electrical panel beyond 400 amps and the Cooperative makes a corresponding upgrade in the transformation for that service, a contribution-in-aid-of-construction equal to 25% of the estimated cost to be incurred by the Cooperative shall apply.
7. Multiple-Metered Service. The following applies to all line extensions to serve multiple-metered loads.
a. A contribution-in-aid-of-construction for any line extension to the delivery point shall be based on the previous provisions of this policy as applicable.
b. For services of 600-amps or less, the gang meter panels with meter bypass and breaker shall be furnished and installed by the Owner. The delivery point shall be the transformer terminal or the buss of a secondary transition cabinet furnished and installed by the Owner, including cabinet connector.
c. For services exceeding 600 amps, the Owner shall furnish and install the gang meter panels with meter bypass and breaker and also furnish and install a secondary transition cabinet next to the transformer with a connective raceway between them. The Cooperative shall furnish and install the conductor between the transformer and transition cabinet and be fully responsible for all connectors and connections in the transformer. The Owner shall furnish the connectors inside the transition cabinet.
d. The Cooperative shall furnish membership application forms and self-addressed, stamped envelopes to the Owner/Manager of the facility for use in collecting deposits and notifying the Cooperative of new tenants. The Owner/Manager shall also be responsible for notifying the Cooperative when tenants move out and shall be ultimately responsible for the balance on the electric bill of any tenant that moves out. The Cooperative shall make arrangements with the Owner/Manager to obtain the forwarding addresses of former tenants.
8. Mobile or Modular Home
a. For electric service to an individual mobile or modular home, the following applies:
(1) If the Cooperative considers the structure to be permanent in nature (i.e.; approved water supply, septic system and/or permanent foundation), a contribution-in-aid-of-construction for any line extension to the delivery point shall be based on the previous provisions of this policy as applicable.
(2) If the Cooperative considers the structure to be non-permanent in nature, the Cooperative shall require a contribution-in-aid-of-construction equal to one-half of the estimated cost to provide electric service.
b. For electric service to mobile or modular home courts or parks, the Owner shall furnish and install a meter loop and support pole for overhead service. If underground service is provided, the Owner shall be charged a minimum of $400.00 per metering point – either single or multiple.
9. Non-Permanent/Temporary Service The following applies to facilities of a temporary nature or where the venture may be of such speculative character that the permanency is questionable.
a. The Cooperative shall collect a construction deposit to cover all of the costs associated with the construction and retirement of facilities that are non-permanent/temporary in nature including labor, overheads and materials.
b. Upon retirement of the facilities, credit on the deposit shall be granted for any material salvaged. If the Cooperative decides to reclassify the electric service as permanent in nature, the amount of the deposit in excess of any contribution-in-aid-of-construction shall be refunded.
c. Any inspection fees that are required for the temporary service shall be the responsibility of the member-consumer.
d. The Cooperative shall also collect a prepayment sufficient to cover the estimated usage or twelve (12) monthly minimums, whichever is greater. This prepayment will then be credited to the electric account on a monthly basis.
10. Construction Service
a. When single-phase electric service is requested during the construction of facilities to be served with permanent electric service at a later date, the Cooperative will energize and de-energize a 20 amp, single-phase construction service provided by the contractor after receiving a $200.00 fee for each construction service.
b. When three-phase electric service is requested during the construction of facilities to be served with permanent electric service at a later date, the Cooperative will energize and de-energize a three-phase construction service provided by the contractor after receiving a $400.00 fee for each construction service.
11. Primary Voltage Service
a. A contribution-in-aid-of-construction for any line extension to the delivery point shall be based on the previous provisions of this policy as applicable.
b. The Cooperative may furnish electric service at 12,470/7,200-ground wye primary voltage under the applicable rate schedule at the request of the member-consumer. To qualify, the member-consumer must be capable of owning, operating and maintaining all high voltage distribution facilities between the metering point and the low voltage service entrance.
c. Due to the specialized nature of the required metering, the cost of the primary metering package shall be included in the contribution-in-aid-of-construction for any primary voltage service.
12. Recognizing the fact that the Cooperative can not define a method of determining the applicable contribution-in-aid-of-construction for every situation or circumstance in a written policy, the General Manager and the Operations Manager shall have the authority to interpret the intent of this policy and make reasonable estimates of contributions-in-aid-of-construction for unusual or unique situations whether or not specifically addressed herein.
E. Duplication of Service/Redundant Service
1. For any member-consumer requesting redundant electric service with the construction of an alternate feed, the Cooperative shall require a contribution-in-aid-of-construction equal to the cost of redundant line extension less the value of any resulting line improvements or upgrades deemed beneficial to the Cooperative.
F. Developments or Platted Subdivisions
1. For development of residential areas, an economic analysis shall be made by the Cooperative to determine if anticipated revenue justifies the expenditure. When the anticipated revenues justify the expenditure, the Cooperative may waive any or all contributions-in-aid-of-construction. When the anticipated revenue does not justify the expenditure, the installation will be made only if the Owner/Developer pays the Cooperative that portion of the facility cost not justified by the anticipated revenue.
2. The Owner/Developer shall establish grades, which shall be no more than four (4) inches above or below the final finished grade. The Owner/Developer shall be responsible for all costs associated with the relocation of Cooperative facilities to accommodate changes in grade or relocation after the facilities have been installed.
G. Easements
1. A contract for electric service, or the receipt of service by a member-consumer, shall be construed as an agreement granting to the Cooperative without charge, an easement for electric lines, wires, conduit and other equipment of the Cooperative necessary to render service to the member-consumer. Cooperative personnel may enter the premises to repair, maintain and perform any other duties necessary to provide continuity of service for the member-consumers of the Cooperative.
2. The Cooperative may assist the member-consumer in the procurement of other right-of-way easements necessary for the line extension and may assess the member-consumer for any costs incurred in the right-of-way acquisition. It shall be the responsibility of the member-consumer desiring service to provide or pay for costs incurred for tree or brush clearing or crop damages.
H. Transformers
1. Necessary step-down transformers shall be installed and maintained by the Cooperative, unless otherwise specified in the applicable rate schedule on file. The Cooperative shall determine the required capacity of the transformation.
a. The member-consumer, at the request of the Cooperative, shall furnish and maintain space and facilities for the installation of the Cooperative's transformers and other equipment.
III. RESPONSIBILITY
The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.
EFFECTIVE DATE: January 1, 2018
DATE ADOPTED: April 24, 2003
DATE REVISED: January 24, 2008
DATE REVISED: January 22, 2009
DATE REVISED: March 21, 2013
DATE REVISED: May 23, 2013
DATE REVISED: August 21, 2014
DATE REVISED: February 22, 2017
DATE REVISED: November 29, 2017
DATE REVISED: March 21, 2019
ATTESTED: ________________________________________
Chris Hofer, Secretary
