Electric Line Extension Policy Review

1
Electric Line Extension Policy Review
November 8, 2001
2
Presentation Summary

• Line Extension Assumptions
• Administrative Guidelines
• Implementation
• Questions

3
Line Extension Assumptions

• Least cost design
• Overhead service on wood poles
• Cleared Right-of-Way
• Permanent facilities

4
Types of Extensions - Small Loads

• Under 20 kW single phase - single customer
• Overhead
• Underground
• Under 20 kW single phase - multiple customers
• Overhead
• Underground
• Methodology for calculating extension allowance
  is based on footage or equivalent cost.

5
Types of Extensions - All Other

• Larger and Non-Standard Loads
• Over 20 kW and all three phase
• Larger Commercial/Industrial
• Multi-Family
• Specific Cost Study
• Added load to existing facilities
• Methodology for calculating extension allowance
  is based on revenue justification.
• Temporary Facilities
• Removal and Relocation

6
Overhead Extensions for Small Loads

• 6.1.2.2.5.1 Overhead Extensions For Small Loads
• Single phase permanent retail customers having an
  estimated maximum demand of less than 20 kW
• Allows for up to 300 of facilities extension,
  including primary, secondary and service
• Extensions typically for residential subdivision,
  single family residential and smaller commercial
  loads.

7
Overhead Extension - Single Phase less than 20 kW
Existing Facilities
New Facilities
Overhead Transformer
Total distance 300 feet or less (Primary
Secondary Service) Any CIAC amount due from
the retail customer will have Federal Income Tax
added at the rate of 28 percent.
8
Underground Extensions for Small Loads

• 6.1.2.2.5.2 Underground Extensions For Small
  Loads
• Single phase permanent retail customers having an
  estimated maximum demand of less than 20 kW
• Allows for an amount of underground facilities
  equivalent to 300 of overhead single phase
  facilities, including primary, secondary and
  service
• Extensions typically for residential subdivision,
  single family residential and smaller commercial
  loads.
• The Retail Customer may at their option elect to
  provide the civil construction required for TXU
  Electric facilities to reduce any CIAC amount
  owed and/or to improve overall project
  coordination.

9
Underground Extension - Single Phase less than 20
kW
Existing Facilities
New Facilities
Pad Mount Transformer
Retail Single Customer - 132 ft Total Equivalent
Distance in dirt or chunk rock soil, 96 feet in
solid rock, or up to 2,730 per location or meter
(Primary Secondary Service) Retail
Multi-Customer - 119 ft Total Equivalent
Distance in dirt or chunk rock soil, 86 feet in
solid rock, or up to 2,445 per location or meter
(Primary Secondary Service)

10
Calculation of Contribution in Aid of
Construction All Other Extensions

• 6.1.2.2.5.3 Calculation Of Contribution In Aid
  Of Construction (CIAC) For All Other Extensions
• Applies to any three phase permanent retail
  customer or any permanent retail customer with an
  estimated maximum demand of 20 kW or greater
  (larger commercial/industrial and multi-family)
• Any CIAC requirements are calculated utilizing
  the following formula
• CIAC amount Direct Cost - (Standard Allowance
  Factor x Maximum kW Demand)
• Direct cost is the current average cost of the
  delivery system facilities necessary to provide
  delivery service to retail customer
• Standard Allowance Factors are 27/kW -
  Secondary voltage retail customers
• 19/kW - Primary voltage retail customers
• 3/kW - High voltage retail customers
• Maximum kW demand is the estimate of customer's
  max 15-minute kW demand.
• No CIAC is required if the amount calculated in
  the formula is zero or negative.
• Any CIAC amount due will have Federal Income Tax
  added at the rate of 28 percent.
• The Retail Customer may at their option elect to
  provide the civil construction required for TXU
  Electric facilities to reduce any CIAC amount
  owed and/or to improve overall project
  coordination.

11
Underground Extension - Greater Than 20 kW
1000 kW Demand Load
Pad Mount Transformer
Allowable Expenditure Secondary POD 1000 kW x
27/kW 27,000 Primary POD 1000 kW x 19/kW
19,000
12
Retail Customer Requested Facility Upgrades

• 6.1.2.2.5.4 Retail Customer Requested Facility
  Upgrades
• Applies to existing retail customer that is
  adding load that will exceed the capacity of the
  Companys existing facilities
• Company will upgrade its existing facilities to
  accommodate the added load and any CIAC
  requirement will be calculated in accordance with
  6.1.2.2.5.3
• Only those costs associated with upgrading the
  existing facilities are included in the CIAC
  calculation.
• The additional kW requirements will be used to
  determine the Standard Allowance Factor in
  accordance with 6.1.2.2.5.3.

13
Non-Standard Facility Extensions

• 6.1.2.2.6 Non-Standard Facility Extensions
  Distribution
• Non-standard facilities include but are not
  limited to a two-way feed, automatic or manual
  transfer switches, service through more than one
  point of delivery, redundant facilities,facilities
  in excess of those normally required for
  service, or facilities necessary to provide
  service at a non-standard voltage.
• Company shall collect any amount for the
  installation of retail retail customer requested
  non-standard facilities prior to construction of
  these facilities.
• Any CIAC amount due from the developer /retail
  customer will have Federal Income Tax added at
  the rate of 28 percent.

14
Excess Facilities Overhead Extension
Overhead Transformer
30 ft
Overhead Transformer
200 ft
- - - Least Cost design - 1,500 Retail
customer requested design - 2,500 CIAC
1,000
15
Excess Facilities Underground Extension
30 ft
80 ft UG Service
Overhead Transformer
Pad Mount Transformer
150 ft
- - - Least Cost design - 2,000 Retail
customer requested design - 3,400 CIAC
1,400
16
Temporary Delivery System Facilities

• 6.1.2.2.7 Temporary Delivery System Facilities
  Distribution
• Retail customer requested distribution service
  for a single, continuous period of time which is
  less than twelve consecutive months or for any
  construction power request
• Retail customer shall pay to TXU Electric, the
  estimated installation and removal cost including
  non-salvageable materials of temporary facilities
  required by retail customer for the provision of
  temporary electric service.
• Retail customer shall pay this cost prior to
  construction of these facilities.

17
Removal and Relocation of Facilities

• 6.1.2.2.8 Removal And Relocation Of Company's
  Facilities Distribution
• Retail customer is requesting the removal or
  relocation of Companys existing facilities from
  retail customers premise.
• If a retail customer requests relocation or
  removal of existing TXU Electric facilities due
  to added or new load resulting in added revenue
  and requiring a change in retail customers
  existing distribution requirements, such
  relocation cost will be included as a direct cost
  in the calculation of CIAC requirements as
  outlined in 6.1.2.2.5.3.
• An exception to this provision are those
  relocations that are performed at the request of
  municipalities for the limited purpose of street
  widening and street straightening. Pursuant to
  PURA, the utility bears the relocation cost in
  these cases.

18
Facilities Relocation
New Building or Expansion
- - - - Existing Facilities Relocated
Facilities These existing facilities must be
situated such that the relocation of these
facilities is necessary for the construction of
or to maintain clearance from a new building or
building expansion.
19
Implementation Guidelines

• TXU Electric Gas will provide a 90-day
  transition period for all bonafide projects that
  are truly in the development pipeline.
• Qualifying transitional projects will be
  administered under the 2001 policy.

20
Effective Dates for Installation Requirements -
Residential Subdivisions

• In order to qualify as a transitional project
  and have the project served utilizing 2001 policy
  the project
• Must have project plans/plats in the TXU Electric
  Gas design process by February 1, 2002.
• Must be engaged in active, continuous site
  development with ongoing discussions with TXU
  Electric Gas project management.
• Must be sufficiently completed such that TXU
  Electric Gas has begun - or can begin - the
  installation of its facilities by June 1, 2002,
  including
• Plans/plats approved by governing body
• Property at final grade, (where TXU Electric
  Gas facilities are to be installed), for the
  specific phase being developed such that TXU
  Electric Gas facilities are being or can be
  installed in conjunction with other utilities
  serving this phase
• ROW cleared
• Roads cut to grade or paved

21
Effective Dates for Installation Requirements -
All Others

• In order to qualify as a transitional project
  and have the project served utilizing 2001 policy
  the project
• Must have service required date on or before
  January 31, 2002
• Must be engaged in active, continuous discussions
  with TXU Electric Gas project management.
• Must be sufficiently completed such that TXU
  Electric Gas can provide permanent service on
  or before January 31, 2002
• Agreement exists that commits TXU Electric Gas
  to provide service under the 2001 line extension
  policy