20240916Compliance Filing.pdf

VP Inc. Water System
RATE SCHEDULE 1 — RECURRING CHARGES
MONTHLY CHARGE: $75.43
RATE SCHEDULE 2 — NON-RECURRING CHARGES
RECONNECTION CHARGE: $50.00
This charge is applicable to all customers where water has
been physically turned off for non-payment of a delinquent bill.
LATE PAYMENT CHARGE: 1% of unpaid balance
This charge is based on the unpaid balance at the time of the
next billing.
RETURN CHECK CHARGE $20.00
Issued (118124) Issued by VP Inc.
Effective(118124) Richard A -'llelli esident 1l,
Order No 35998 `

VP Inc. Water System
GENERAL RULES & REGULATIONS
FOR SMALL WATER UTILITIES
1. GENERAL
1.1 The Customer, in receiving water service, and the Company, in
providing water service, shall both agree to abide by these rules
and regulations.
1.2 In the event that there is a conflict between these rules and
regulations and the Utility Customer Relations Rules (UCRR), the
Rules and Regulations of the Idaho Public Utilities Commission
(Commission) shall take precedence unless an exception has been
granted.
1.3 All recurring and non-recurring charges shall be approved in
advance by the Commission.
2. DEFINITIONS
2.1 Applicant - a potential customer (person, business or government
agency) applying for service to the Company and subject to the
Commission's rules and regulations.
2.2 Billing Period - the period of time between bills from the Company
for normal services rendered.
2.3 Commission - Idaho Public Utilities Commission.
2.4 Commodity Charge - a recurring charge based only on the quantity
of water used.
2.5 Company - the water company.
2.6 Connection or Hook-Up Fee - a non-recurring charge paid by a
Customer requesting service for partial or full recovery of the
Company's cost of providing a new service connection.
2.7 Contribution in Aid of Construction - a non-recurring charge paid by
a Customer or developer to help defray the cost of system
expansion.
2.8 Customer - a person, business or government agency responsible
for paying bills and complying with the rules and regulations of the
company.
Issued (1/8/24) Issued by VP Inc.
Effective (1/8/24) Richard1"
ViI -Ili Presi�j�
Order No 35998R ��,/

VP Inc. Water System
2.9 Customer Charge - a recurring fixed charge to recover a portion of
the cost of meter reading and billing.
2.10 Fixed or Flat Rate - a recurring charge of a fixed amount, usually in
an unmetered system.
2.11 _Franchise Tax - the tax imposed on a Company by a governmental
entity for the privilege of doing business within its boundaries.
2.12 Late Pa ment Charge - the non-recurring charge levied against any
delinquent balance.
2.13 Minimum_Charge - the minimum recurring charge for a billing
period that may or may not include a specified quantity of water.
2.14 Non-recurrin_q Charges - the charges that are not assessed each
billing period.
2.15 Premises - the Customer's property including out buildings which
are normally located on one lot or parcel of ground.
2.16 Rate Schedule - the schedules of all recurring and non-recurring
charges of the Company,
2.17 Reconnection Charge - the charge paid by a Customer to the
Company to restore service after disconnection.
2.18 Recurring Charges - the charges that are assessed each billing
period,
2.19 Tariff - the rate schedules and the rules and regulations which
govern the Company's service.
2.20 Utility Customer Relations Rules (UCRR - Customer Relations Rules
for Gas, Electric, and Water Public Utilities Regulated by the Idaho
Public Utilities Commission (The Utility Customer Relations Rules) -
IDAPA 31.21.01.000 et seq.
3. SERVICE FOR NEW CUSTOMERS
3.1 The Company shall furnish service to applicants within its
certificated service area in accordance with rates and the rules and
regulations approved by the Commission.
3.2 Applicants for water service may be required to sign a standard
form of service application.
Issued (118/24) Issued by VP Inc.
Effective (1/8/24) Richard A Ville i Preside_4 (\
Order No 35998 n�

VP Inc. Water System
3.3 The Company shall not be obligated to provide service at a service
location until any required deposit has been received by the
Company in accordance with the UCRR.
3.4 Special contracts may be required where large investments in
special facilities are necessary to provide the requested service.
The Company may require contribution toward such investment
and establish such minimum charges as are deemed necessary. All
such contracts shall be subject to the approval of the Commission.
3.5 The Company reserves the right to place limitations on the amount
and character of water service it will supply and to refuse service if,
in its opinion:
a. the Company is required to refuse or limit service by
regulatory authorities having jurisdiction over the Company;
b. the requested service installation is of larger size than is
necessary to properly serve the premises;
C. the permanency of the building, structure, or institution
requesting to be served is such that the Company's
investment in such service is jeopardized;
d. the depth of the applicant's service line is less than the
minimum depth required for frost protection;
e. the applicants' proposed service, main or other appurtenance
does not conform to good engineering design or meet the
standard specifications of the Company; or
f. if the applicant refuses to agree to abide by the rules and
regulations of the Company.
If the Company denies service to an applicant for any reason, it
shall immediately provide the applicant with a written explanation
of its decision in accordance with the UCRR.
4. DEPOSITS
4.1 Rules and Regulations regarding deposits can be found in the
UCRR.
5. RATES
Issued (118124) Issued by VP Inc.
Effective (118124) Rj�hard illell�f'resideq -r,,\
Order No 35998 (J U

VP Inc. Water System
5.1 Rates charged for water service and supply shall be those published
in the Company's tariff and approved by the Commission.
6. BILLING AND PAYMENT
6.1 All Customers shall be billed on a regular basis as identified on the
applicable rate schedule.
6.2 If the system is metered, the Company shall try to read the meters
prior to each billing unless specified differently on the applicable
rate schedule. If the Company's meter reader is unable to gain
access to the premises to read the meter, or in the event the meter
fails to register, the Company will estimate the Customer's water
consumption for the current billing period based on known
consumption for a prior similar period or average of several
periods. Subsequent readings will automatically adjust for
differences between estimated and actual. Bills based on estimated
consumption shall be clearly marked as "estimated".
6.3 All bills shall clearly indicate the balance due, and may be due and
payable no less than 15 days after the date rendered. All bills not
paid by due date may be considered delinquent and service may be
disconnected subject to the provisions of the UCRR.
6.4 A Late Payment Charge may be levied against any delinquent
account. All payments received by the next billing date shall be
applied to the Customer's account prior to calculating the Late
Payment Charge.
6.5 The minimum bill or customer charge shall apply when service is
provided for less than one month.
6.6 Owners of premises with one or more condominiums, buildings,
stores, apartments or any other divisions of like or similar
character, all of which are served from one (1) service connection
are responsible for the entire water charges. If the owner desires
to cease being responsible for water bills for such places and
desires that the occupant of each division will be responsible for her
or her respective bill, such transfer of responsibility will not be
accepted or recognized by the Company until the plumbing
arrangements of the building or premises are so changed by the
owner or his or her agent as to permit the Company, to its
satisfaction, to serve each division or occupant separately from the
other occupants in the same building.
Issued (118/24) Issued by VP Inc.
Effective (118124) Richard A�Villelli r sident
Order No 35998
��

VP Inc. Water System
6.7 Accounts shall be continued and water bills rendered regularly until
the Company has been duly notified to discontinue service.
7. METERING (If Applicable)
7.1 Meters will be installed by the Company near the Customer's
property line or at any other reasonable location on the Customer's
premises that is mutually agreed upon.
7.2 The Company's representative shall be given access to the
Customer's premises at all reasonable hours for the purpose of
obtaining meter readings. In the event of recurring inaccessibility
the Company may, at its option and after notifying the customer,
relocate its metering equipment at the Customer's expense.
7.3 The Company shall be responsible for the maintenance of its
metering equipment. Meters are considered to be sufficiently
accurate if tests indicate that meter accuracy is within + 2 percent.
When for any reason a meter fails to register within these limits of
accuracy, the Customer's use of water shall be estimated on the
basis of available data and charges shall be adjusted accordingly.
Corrected bills shall then be sent out to the customer and additional
payment or refund arrangements shall be made in accordance with
the UCRR.
7.4 The Company reserves the right to test and/or replace any meter.
Upon deposit of a "Meter Testing Fee" by a Customer, the Company
will test the Customer's meter. If the test indicates that the meter
over-registers by more than 2 percent, it shall be replaced with an
accurate meter at no cost to the Customer and the "Meter Testing
Fee" shall be refundcd and water bills shall be adjusted in
accordance with the UCRR. Meter Testing Fees shall require prior
approval by the Commission.
7.5 At the Company's discretion, un-metered Customers may be
converted to metered service if such transition occurs in a planned,
systematic manner without unreasonable discriminations and if the
Company has an approved metered rate.
7.6 The Company will have the right to set meters or other devices
without notice to the Customer for the detection and prevention of
fraud.
7.7 In any building where the meter is to be installed in the basement,
the incoming water pipe must enter the basement at least sixteen
Issued (1/8/24) Issued by VP Inc.
Effective (1/8/24) Richard! Ville d Pcesid�
Order No 35998 �,

VP Inc. Water System
(16) inches from the riser in order that a meter can be set in a
horizontal position in the basement. All pipes to the different parts
of the building or grounds must lead from the riser at least one (1)
foot above the elbow.
8. CUSTOMER PLUMBING AND APPLIANCES
8.1 All plumbing, piping, fixtures and appliances on the Customer's side
of the service connection will be installed and maintained under the
responsibility and at the expense of the Customer or owner of the
premises.
8.2 The plumbing, piping, fixtures and appliances shall be maintained
in conformity with all municipal, state and federal requirements.
The nature and condition of this plumbing, piping and equipment
will be such as not to endanger life or property, interfere with
service to other Customers or permit those with metered services
to divert system water without meter registration.
8.3 A stop-and-waste valve will be installed on the Customer's
plumbing in a place always accessible and so located as to permit
shutting off the water for the entire premises with the least
possible delay.
8.4 All persons having boilers, water tanks or other equipment supplied
by direct pressure from the Company's mains should install a
pressure relief valve, or other device to serve the same purpose, so
as to prevent excess pressure from forcing hot water and/or steam
back into the water meter and mains of the Company. All damage
to the Company's property resulting from the failure to properly
equip plumbing with a relief valve will be billed to the Customer.
8.5 The Company is not obligated to perform any service whatever in
locating leaks or other trouble with the customer's piping.
8.6 When the premises served by the Company are also served in any
manner from another water supply of any kind, an approved
backflow prevention device shall be installed at the service
connection. Water service for either stand-by or other purposes
will not be furnished until piping and connections are inspected and
approved by a representative of the Company.
8.7 Property owners will not be allowed to connect the water service of
different properties together.
Issued (1/8124) Issued by VP Inc.
Effective (118124) Richard A iilell' Presider 1
Order No 35998 L �'�

VP Inc. Water System
8.8 All of the Customer's service pipes and fixtures must be kept in
repair and protected from freezing at his or her expense. When
there are leaking or defective pipes or fixtures, the water may be
turned off at the option of the Company until the proper repairs are
made.
9. INSTALLATION OF SERVICE CONNECTIONS
9.1 The service connection is the property of the Company and as such,
the Company is responsible for its installation and maintenance. It
consists of piping, curbstop and valve or meter box and a meter, if
the system is metered. The service connection transmits water
from the Company's water main to a valve or meter box generally
located near the Customer's property line. All piping, valves or
appliances beyond this point shall be the property and
responsibility of the Customer.
9.2 The Company reserves the right to designate the size and location
of the service line, curbstop, meter (if applicable) and meter or
valve box and the amount of space which must be left unobstructed
for the installation and future maintenance and operation thereof.
9.3 Where a service connection is desired for premises on which there
is no permanent structure, the Company will install a service
connection to said premises only upon payment by the applicant of
the estimated cost of said service connection. If within a period of
five (5) years from the installation of said service connection a
permanent structure is erected on the premises, the Company will
refund, with interest, the difference between any approved new
Customer charges in effect at the time of connection, and the
applicant's advance.
9.4 The extra costs of any out-of-the-ordinary circumstances requiring
additional equipment or special construction techniques involved in
the installation of a service connection will be agreed to in advance
by the Customer and the Company,
10. REPLACEMENT OR ENLARGEMENT OF SERVICE CONNECTION
10.1 Unless otherwise provided herein, the Company shall replace or
enlarge service connections at its own expense as follows:
Issued (118/24) Issued by VP Inc.
Effective (1/8/24) Richard A Vill li Presid�rit ,
Order No 35998 '� \ '

VP Inc. Water System
a. whenever it is necessary to change the location of any
service connection due to relocation or abandonment of the
Company's mains; and,
b. for commercial or industrial services where the type or
volume of use has changed and the enlargement will result
in sufficient increase in annual revenue to justify the
enlargement.
10.2 The relocation, enlargement or reduction of service connections for
the convenience of the Customer will be at the expense of the
Customer. Prior to such relocation, enlargement or reduction, the
Customer will deposit the estimated cost thereof with the
Company. Within fifteen (15) days, a refund will be made to the
Customer in the amount by which the estimated cost exceeds the
actual cost. The amount by which the actual cost exceeds the
estimated cost will be due and payable within fifteen (15) days
after billing for such deficiency.
10.3 Enlargement of any service connection will be made only after such
time as the Customer's plumbing inside his or her premises have
been enlarged sufficiently to accommodate the additional capacity.
11. DISCONNECTION AND RECONNECTION OF SERVICE
11.1 When a Customer desires to discontinue service he shall give notice
to the Company at least two (2) days in advance and be
responsible for all water consumed for the two (2) days after the
date of such notice.
11.2 The Company shall discontinue a Customer's service on an
involuntary basis only in accordance with UCRR.
11.3 When it becomes necessary for the Company to involuntarily
discontinue water service to a Customer, service shall be
reconnected only after all bills for service then due have been paid
or satisfactory payment arrangements have been made.
11A A reconnection fee may be charged each time a Customer is
disconnected, either voluntarily or involuntarily, and reconnected at
the same premises. The reconnection fee will be paid before service
is restored. Reconnection fees shall not be charged for any
situation or circumstance in which the Customer's water supply is
disconnected by the Company for its convenience.
Issued (1/8/24) Issued by VP Inc.
Effective (118/24) Richard Villell President ,
Order No 35998 Z

VP Inc. Water System
11.5 The Company reserves the right at any time, upon notice, to shut
off the water for maintenance or expansion and, in emergencies,
may do so without notice. The Company shall at all times use
reasonable diligence and care to prevent interruption of said water
service.
11.6 Except in the case of an emergency, no one, except an authorized
Company representative, shall turn on or turn off the water on the
Company's side of the service connection.
12. EXTENSION OF WATER MAINS
12.1 The extension of system water mains for the purpose of providing
new service shall be handled in accordance with the "Uniform Main
Extension Rules for Small Water Companies" which is attached to
these Rules and Regulations as an Appendix.
13. MISCELLANEOUS
13.1 No customer shall permit any person from another premises to take
water from his or her water service or tap for more than (1) week
without the written permission and consent of the Company.
13.2 No person acting either on his or her own behalf or an agent of any
person, firm, corporation or municipality not authorized by the
Company shall take any water from any fire hydrant on the
Company's system except in the case of an emergency.
13.3 No person shall place upon or about any hydrant, gate, box, meter,
meter box or other property of the Company any building material
or other substance so as to prevent free access at all times to the
same.
13.4 Service will be maintained to domestic Customers on a preferential
basis. Delivery of water under all schedules may be restricted,
interrupted or curtailed at the discretion of the Company in case of
shortage or threatened shortage of water.
13.5 No rate contract or application is assignable from one user to
another, except upon agreement of all parties concerned.
13.6 The Company representative shall be given access to the premises
of the Customer at all reasonable hours for obtaining meter
readings, for turning on or shutting off the flow of water, for
Issued (118124) Issued by VP Inc.
Effective (118124) Richard A illelli fresiden ,
Order No 35998 ��'�

VP Inc. Water System
inspecting, removing, repairing or protecting from abuse or fraud
any of the property of the Company installed on the premises.
Access shall be granted at all times for emergency purposes.
13.7 No one shall tamper or interfere with the Company's equipment or
property, nor shall repairs, connections or replacements be made
without the Company authorization.
13.8 Whenever an applicant desires service of a character for which
there is no available service classification, a contract may be
executed in lieu of a tariff. Any such contract shall be subject to
the approval of the Idaho Public Utilities Commission.
13.9 Copies of the Company's rates and summary of rules and
regulations shall be available at the Company's office and provided
to customers upon commencement of service, and annually
thereafter in accordance with the UCRR.
Issued (1/8/24) Issued by VP Inc.
Effective (1/8/24) Richard A Villel"residet t
Order No 35998

VP Inc. Water System
14. Special Provisions or Amendments
Issued (1/8/24) Issued by VP Inc.
Effective (118124) Richard A� illelli side
Order No 35998 � ��

UNIFORM MAIN EXTENSION RULE FOR WATER UTILITIES
Based on Order No. 7830 (Case No. U-1500-22)
A. GENERAL PROVISIONS AND DEFINITIONS
1. Applicability
a. All extensions of distribution mains from the utility's existing distribution
system, to serve new customers, except for those specifically excluded
below shall be made under the provisions of this Rule unless specific
authority is first obtained from the Commission to deviate therefrom. A
main extension contract shall be executed by the utility and the applicant
or applicants for the main extension before the utility commences
construction work on said extension or, if constructed by applicant or
applicants, before the facilities comprising the main extension are
transferred to the utility.
b. Extensions solely for fire hydrant, private fire protection, resale,
temporary, standby, or supplemental service shall not be made under this
Rule.
c. The utility may, but will not be required to, make extensions under this
Rule in easements or rights-of-way where final grades have not been
established, or where street grades have not been brought to those
established by public authority. If extensions are made when grades have
not been established and there is a reasonable probability that the
existing grade will be changed, the utility shall require that the applicant
or applicants for the main extension deposit, at the time of execution of
the main extension agreement, the estimated net cost of relocating,
raising, or lowering facilities upon establishment of final grades.
Adjustment of any difference between the amount so deposited and the
actual cost of relocating, raising, lowering facilities shall be made within
ten (10) days after the utility has ascertained such actual cost. The net
deposit representing actual cost is not subject to refund. The entire
deposit related to the proposed relocation, raising or lowering shall be
refunded when such displacements are determined by proper authority to
be not required.
2. Definitions
a. Bona Fide Customer, for the purposes of this Rule, shall be a customer
(excluding any customer formerly served at the same location) who has
given satisfactory evidence that service will be reasonably permanent to
the property which has been improved with a building of permanent
nature and to which service has commenced. The provision of service to a
real estate developer or builder during the construction or development
period shall not establish him as a bona fide customer.
b. Real Estate Developer or Builder, for purposes of this Rule, shall include
any individual, association of individuals, partnership, or corporation that
divides a parcel of land into two (2) or more portions.
c. Adjusted Construction Cost, for the purposes of this Rule, shall be
reasonable and shall not exceed the costs recorded in conformity with
generally accepted water utility accounting and sound engineering
practices, and as specifically defined in the, Uniform System of Accounts
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for Water Utilities prescribed by the Commission, of installing facilities, of
adequate capacity for the service requested. If the utility at its option
should install facilities with' a larger capacity or resulting in a greater
footage of extension than required for the service, the adjusted
construction cost for the purposes of this Rule shall be determined by the
application of an adjustment factor to actual construction cost of facilities
installed. This factor shall be the ratio of estimated cost of required
facilities to estimated cost of actual facilities installed.
d. Commission shall mean the Idaho Public Utilities Commission.
3. Ownership, Design and Construction of Facilities
a. Any facilities installed hereunder shall be the sole property of the utility.
In those instances in which title to certain portions of the installation, such
as fire hydrants, will be held by a political subdivision, such facilities shall
not be included as a part of the main extension under this Rule.
b. The size, type, quality of materials and their location shall be specified by
the utility and the actual construction shall be done by the utility or by a
constructing agency acceptable to it.
c. Where the property of an applicant is located adjacent to a right-of-way,
exceeding 70 feet in width, for a street, highway or other public purpose,
regardless of the width of the traveled way or pavement; or a freeway,
waterway or railroad right-of-way, the utility may elect to install a main
extension on the same side thereof as the property of the applicant and
the estimated and adjusted construction costs in such case shall be based
upon such an extension.
d. When an extension must comply with an ordinance, regulation, or
specification of public authority, the estimated and adjusted construction
costs of said extension shall be based upon the facilities required comply
therewith.
4. Estimates, Plans and Specifications
a. Upon request by a potential applicant for a main extension, the utility shall
prepare without charge a preliminary sketch and rough estimates of the
cost of installation to be advanced by said applicant.
b. Any applicant for a main extension requesting the utility to prepare
detailed plans, specifications and cost estimates shall be required to
deposit with the utility an amount equal to the estimated cost of
preparation of such material. The utility shall, upon request, make
available within 45 days after receipt of the deposit referred to above,
such plans, specifications and cost estimates of the proposed main
extension. If the extension is to include oversizing of facilities to be done
at the utility's expense appropriate details shall be set forth in the plans,
specifications and cost estimates.
c. In the event a main extension contract with the utility is executed within
180' days after the utility furnishes the detailed plans and specifications,
the deposit shall become a part of the advance, and shall be refunded in
accordance with the terms of the main extension contract. If such contract
is not so executed the deposit to cover the cost of preparing plans,
specifications and cost estimates shall be forfeited by the applicant for the
main extension and the amount of the forfeited deposit shall be credited
2

to the account or accounts to which the expense of preparing said
material was charged.
d. When detailed plans, specifications and cost estimates are requested the
applicant for a main extension shall furnish a map to a suitable scale
showing the street and lot layouts, and when requested by the utility,
contours or other indication of the relative elevation of the various parts of
the area to be developed. If changes are made subsequent to the
presentation of this map by the applicant, and these changes require
additional expense in revising plans, specifications and cost estimates this
additional expense shall be borne by the applicant, not subject to refund,
and the additional expense thus recovered shall be credited to the account
or accounts to which the additional expense was charged.
5. Timing and Adjustment of Advances
a. Unless the applicant for the main extension elects to arrange for the
installation of the extension himself as permitted by Section C.1.c., the
full amount of the required advance or an acceptable surety bond must be
provided to the utility at the time of execution of the main extension
agreement.
b. If the applicant for a main extension posts a surety bond in lieu of cash,
such surety bond must be replaced with cash not less than ten (10)
calendar days before construction is to commence; provided, however,
that if special facilities are required primarily for the service requested,
the applicant for the extension may be required to deposit sufficient cash
to cover the cost of such special facilities before they are ordered by the
utility.
c. An applicant for a main extension who advances funds shall be provided
with a, statement of actual construction cost and adjusted construction
cost showing in reasonable detail the cost incurred for material, labor, any
other direct and indirect costs , overheads, and total costs; or unit costs
or contract costs; whichever are appropriate.
d. Said statement shall be submitted within sixty (60) days after the actual
construction costs of the installation have been ascertained by the utility.
In the event that the actual construction costs for the entire installation
shall not have been determined within 120 days after completion of
construction work, a preliminary determination of actual and adjusted
construction costs shall be submitted, based upon the best available
information at that time.
e. Any differences between the adjusted construction costs and the amount
advanced shall be shown as a revision of the amount of advance and shall
be payable within thirty (30) days of submission of the statement.
6. Assignment of Main Extension Contracts - Any contract entered into under
Sections B and C of this Rule, or under similar provisions of former rules, may
be assigned after settlement of adjusted construction costs, after written
notice to the utility by the holder of said contract as shown by the utility's
records. Such assignment shall apply only to those refunds which become due
more than thirty (30) days after the date of receipt by the utility of the notice
of assignment. The utility shall not be required to make any one refund
payment under such contract to more than a single assignee.
3

7. Interpretations and Deviations - In case of disagreement or dispute regarding
the application of any provision of this Rule, or in circumstances where the
application of this Rule appears unreasonable to either party, the utility,
applicant or applicants may refer the matter to the Commission for
determination.
B. EXTENSIONS TO SERVE INDIVIDUALS
1. Free-Footage Allowance - The utility shall extend its water distribution mains
to serve new bona fide customers at its own expense, other than to serve
subdivisions, tracts , housing projects , industrial developments or organized
commercial districts, when the required total length of main extension from
the nearest existing utility facility is not in excess of fifty (50) feet per service
connection.
2. Advances - If the total length of main extension is in excess of fifty (50) feet
per service connection applied for, the applicant or applicants for such service
shall be required to advance to the utility, before construction is commenced,
that portion of the estimated reasonable cost of such extension which exceeds
the estimated reasonable cost of 50 feet of the main extension per service
connection, exclusive of the cost of service pipes, meter boxes and meters.
Such estimated reasonable cost shall be based upon the cost of a main not in
excess of six (6) inches in diameter except where a larger main is required by
the special needs of the applicant or applicants. The amount of the advance is
subject to adjustment in accordance with the provisions of Section A.5.e. of
this Rule.
3. Refunds - The money so advanced shall be refunded by the utility, in cash
without interest, in payments equal to the adjusted construction cost of fifty
(50) feet of the main extension for which advance was made, for each
additional service connection made to said main extension exclusive of that of
any customer formerly served in a reasonable manner at the same location.
At the request of the applicant, refunds shall be made within 180 days after
the date of first service to a bona fide customer. If no request is received
from applicant the utility shall, initiate refunds on an annual basis. No refunds
shall be made, after a period of ten (10) years from the date of completion of
the main extension and, the total refund shall not exceed the amount
advanced.
4. Exceptions - Where a group of five (5) or more individual applicants requests
service from the same extension, or in unusual cases after obtaining
Commission authorization, the utility, at its option, may require that the
individual or individuals advance the entire cost of the main extension as
herein provided and the utility shall refund this advance as provided in
Section C.2. of this Rule.
C. EXTENSIONS TO SERVE SUBDIVISIONS, TRACTS, HOUSING
PROJECTS INDUSTRIAL DEVELOPMENTS OR ORGANIZED
COMMERCIAL DISTRICT
1. Advances —
a. Unless the procedure outlined in Section C.1.c. is followed, an applicant
for a main extension to serve a new subdivision, tract, housing project or
industrial development or organized commercial district shall be required
to advance to the utility, before construction is commenced, the
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estimated reasonable cost of the extension to be actually installed, from
the nearest utility facility at least equal in size or capacity to the main
required to serve both the new customers and a reasonable estimate of
the potential customers who might be served directly from the main
extension without additional extension. The costs of the extension shall
include necessary service stubs, or service pipes, fittings, gates and
housing therefore, and meter boxes, but shall not include meters. To this
shall be added the cost of fire hydrants when requested by the applicant
for the main extension or required by public authority, whenever such
hydrants are to become the property of the utility.
b. If, for any purpose, special facilities are required primarily for the service
requested, the cost of such special facilities may be included in the
advance, subject to refund, as hereinafter provided, along with refunds of
the advance of the cost of the extension facilities described in Section
C.1.a. above.
c. In lieu of providing the advances in accordance with Sections C.1.a. and
C.1.b., the applicant for a main extension shall be permitted, if qualified in
the judgment of the utility, to construct and install the facilities himself, or
arrange for their installation pursuant to competitive bidding procedures
initiated by him and limited to qualified bidders. The cost, including the
cost of inspection and supervision by the utility, shall be paid directly by
applicant. The applicant shall provide the utility with a statement of actual
construction cost in reasonable detail. The amount to be treated as an
advance subject to refund shall be the lesser of (1) the actual cost, or (2)
the price quoted in the utility detailed cost estimate. The installation shall
be in accordance with the plans and specifications submitted by the utility
pursuant to Section AAb.
2. Refunds
a. The amount advanced under Sections C.1.a., C.1.b.; i and C.1.c. shall be
subject to refund by the utility in cash, without interest, to the party or
parties entitled thereto as set forth, in the following two paragraphs. The
total amount so refunded shall not exceed the total of the amount
advanced. Except as hereinafter provided, the refunds shall be made in
annual, semiannual or quarterly payments at the election of the utility,
and for a period not to exceed twenty (20) years after the date of the
contract.
b. Whenever costs of main extensions have been advanced pursuant to
Sections CA.a. or CA.c., the utility shall determine the revenue received
from customers other than residential, including fire protection agencies,
supplied by service pipes connected directly to the extension for which the
cost was advanced. The refund shall be 22 percent of the revenue so
received. For residential customers connected directly to the extension for
which the cost was advanced, the utility shall refund 22 percent of the
average revenue per residential customer of the entire system for the
immediately preceding 12-month period. (See Section C.2.d. and B.3.)
c. Whenever costs of special facilities have been advanced pursuant to
Sections C.1.b. or C.1.c., the amount so advanced shall be divided by the
number of lots to be served by the special facilities. This advance per lot
shall be refunded for each lot on which one or more bona fide customers
are served by those facilities.
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d. With respect to a contract entered into on and after the effective date of
this Rule, if, at any time during the 20-year refund period specified above
80 percent of the bona fide customers for which the extension or special
facilities were designed are being served therefrom, the utility shall
immediately notify the contract holder of that fact, and at that time shall
become obligated to pay, in cash, any balance which may remain
unrefunded at the end of said 20-year period. Such balance shall be
refunded in five (5) equal annual installments, payable beginning 21 years
after the date of the contract.
e. Where a contract has been entered into under a former main extension
rule, and where 80 percent of the bona fide customers for which the
extension or special facilities were designed are being served therefrom,
the utility may negotiate and enter into a new and substitute contract,
identical in all respects, with the original contract, including the original
termination date, except that said substitute contract shall include the
following provisions: "Notwithstanding any other provisions hereof, any
unrefunded balance remaining at the termination date of this contract
shall be paid in five (5) equal annual , installments beginning one (1) year
after, said termination date."
3. Termination of Main Extension Contracts
a. Any contract entered into under Section C of this Rule, or under similar
provisions of former rules may be purchased by the utility and terminated,
after first obtaining the authorization of the Commission, at any time after
the number of bona fide customers then receiving service from the
extension for which the advance was made equals at least 60 percent of
the total number of bona fide customers for which such extension was
designed by the utility and the terms are otherwise mutually agreed to by
the parties or their assignees and that, Section C.3.b. and Section C.3.c.
hereof are complied with.
b. The utility, in requesting authorization for such termination shall furnish to
the Commission the following information in writing by an advice letter in
the event the termination is to be accomplished by payment in cash, or by
a formal application:
(1) A copy of the main extension contract, together with data
adequately describing the development for which the advance was
made and the total adjusted construction cost of the extension.
(2)The balance unpaid on the contract, as above defined, as of the
date of termination and terms under which the obligation is
requested to be terminated.
(3)The name of the holder of the contract when terminated.
(4)The total number of bona fide customers for which the extension
was designed and the number of bona fide customers actually
receiving service on said extension as of the proposed date of
contract.
c. Discounts obtained by the utility for contracts terminated under the
provisions of this Section shall be accounted for by credits to Account 265
- Contributions in Aid of Construction.
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