Charges for Line Extensions
CHARGES FOR LINE EXTENSIONS TO RESIDENTIAL LOCATIONS
4.1.1 Design. GLPS engineers will design line extensions and related facilities using
"least cost" guidelines based on overhead primary lines. Design of underground
primary lines, specific overhead routing, or other special requirements shall be the
customer's responsibility and shall be subject to approval by GLPS engineers.
4.1.2 Charges. Subject to credits determined in Section 4.1.4 Credits and Section 4.1.6 Special Rules for Approved Subdivisions with five or more units, the customer will be responsible for the cost and expense of all requested line extensions, including a reasonable allocation by GLPS of its engineering and other overhead costs. There shall also be an attachment charge to any line extension attached to a pre-existing line extension located on private property; the attachment charge shall be based on a proration of the amount paid (including amounts owing) by the customer who was charged for the pre-existing line extension. The attachment charge shall be determined by GLPS engineers utilizing a reasonable and appropriate method under the then circumstances.
In addition, underground service (low voltage) installations will require an administrative fee of Twenty-Five Dollars ($25.00) per residential unit served.
4.1.3 Payment. Amounts due hereunder must be paid or suitably financed before service will be connected. GLPS will finance one-half of the amount due subject to a minimum loan amount of Five Hundred Dollars ($500.00) upon proof of acceptable credit. Such financing shall be evidenced by a negotiable promissory note having a term of five (5) years or less bearing interest at "prime" as listed in the Wall Street Journal on the first business day of each month. The accrued interest along with a pro rata share of principal shall be due monthly. Maximum term of said note shall be set so that the minimum monthly payment is Fifty Dollars ($50).
4.1.4 Credits. With the exception of approved subdivisions with five or more units, (Section 4.1.6), the customer will be entitled to a credit against the charges due under Section 4.1.2. This credit shall not exceed the lesser of the estimated "least cost" overhead primary line design as determined by GLPS engineers, or Twelve Hundred Dollars ($1200) per residence, or Fifteen Hundred Dollars ($1500) per residence utilizing all-electric appliances, HVAC systems and water heater(s).
4.1.5 Rebates. All payments due hereunder for line extensions over public property or existing public right-of-ways will be subject to a rebate of twenty percent (20% of said payment(s) for each new residential customer, and a rebate of ten percent (10%) for each other new customer, except security lighting attachments for which no rebate shall be due, who attaches onto said line extension during the next five (5) years following construction of said line extension. The maximum rebate shall not exceed the payment made by the customer for the original line extension.
All payments due hereunder for line extensions over private property shall be subject to rebate of an amount equal to the attachment charge collected by GLPS from any new customer who attaches to the said line extension during the next five (5) years following construction of said line extension. In no event shall the rebates exceed the lesser of the attachment charges collected or payment made by the customer for the original line extension.
Interest paid on amounts financed by GLPS will not be subject to rebate. All rebates due shall be credited first to amounts financed by GLPS, then against any other sums due GLPS. Any balance will be paid by check to the customer. The Customer shall be responsible for requesting any rebate thought to be due under this policy.
4.1.6 Special Rules for Approved Subdivision with Five or More Units. For purposes of this policy, a subdivision must include at least five lots, and must require construction of new public roadways to provide access to at least eighty percent of the individual lots.
Any person requesting service to a subdivision shall post a deposit with the Greeneville Light & Power System in an amount equal to GLPS's estimated cost to serve less $1,500, for a term of five years.
GLPS will release portions of the deposit as certain stages of development are reached. When twenty percent of the lots are developed (i.e. contain residences that are occupied and receiving service from GLPS), GLPS will release thirty percent of the deposit. When the next twenty percent of the lots are developed, GLPS will release another thirty percent of the original deposit. When the next twenty percent of the lots are developed, GLPS will release the remainder of the deposit. It is the intent of this policy to release one hundred percent of the deposit when sixty percent of the subdivision lots are developed as stated above.
When a deposit is released as above, GLPS will pay interest (at an approximate average passbook savings rate) to the person posting the deposit.
If after five years, fewer than sixty percent of the lots are developed as above, the deposit (or any portion thereof) will be applied as a contribution in aide of construction for the line extension to that site. No interest will be paid on deposits that are so applied.
Use of the deposit as a contribution in aid of construction shall not transfer any ownership or any rights of control over said line extension to any person.
The person posting the deposit shall be responsible for tracking the development stages of the subdivision, and for making a written request for the release of deposits thought to be due.
The deposit may be funded by cash, a certificate of deposit in the name of the Greeneville Light & Power System, or other means deemed acceptable by GLPS management and legal counsel.
The deposit shall be posted before GLPS will begin any work on the specific line extension to the proposed development.
The property owner will be responsible for costs and expenses related to any special design requirements (including underground primary service) beyond a "least cost" overhead service design. In addition, any property owner desiring underground service (low voltage) lines for such subdivision will be responsible for an administrative charge of Twenty-Five Dollars ($25.00) per unit served. In all cases the property owner will be entitled to any credit under Section 4.1.4, which section shall have no application to approved subdivisions with five or more units.
4.1.7 Line Extensions to Subdivided Property. For purposes of this policy, subdivided property is defined as one or more tracts of property divided so that no public roadway must be constructed to provide access to eighty percent (or more) of the individual lots. GLPS will provide service to subdivided property under its standard policy for line extensions to individual residences.
CHARGES FOR LINE EXTENSIONS TO NON-RESIDENTIAL LOCATIONS
Costs to serve commercial and industrial accounts are to be recovered via an
investment charge of 1-1/2% per month. Facility maintenance is included in this charge.
Customers may avoid investment charges by making contributions in aide of construction.