Section 803: Service to a Residential Subdivision

I. Objective:

To provide a basis for construction of electric service extensions to residential subdivisions.

II. Policy Content:

To establish deposit requirements and contract terms when a developer requests that an electrical system be installed to serve a residential subdivision.

III. Provision:

PEC may require the developer to pay a sum equal to the estimated cost of the project under the terms of a ten (10) year Agreement for Permanent Electric Service. Such deposit shall be paid to PEC before construction is started on the extension to serve the subdivision. No interest shall be paid on the sum of money deposited with PEC.
Subject to Provision A., once each year for a period of ten (10) years, PEC shall refund to the developer, for each house constructed and actively receiving service from PEC during the year, a sum equal to the total cost of service divided by the total number of platted and developed lots in the subdivision. Application for such refund shall be the responsibility of the developer. In no case will the amount refunded exceed the amount paid to PEC. At the end of the ten (10) year period, any portion of the original deposit that has not been refunded to the developer shall become the property of PEC.
PEC may enter into a contract with a developer for a guarantee of revenues in lieu of the construction deposit.
Prior to actual construction of PEC electric service facilities to the subdivision, the developer shall furnish PEC with a copy of the platted subdivision showing streets, sewer and utility layout and easements, along with any other information needed in the design and location of PEC's facilities.
Underground services shall be provided in accordance with the following:
1. PEC shall install an underground distribution and/or secondary electric system in platted additions, development areas or subdivisions when five (5) or more contiguous lots are scheduled for immediate development, provided:
  1. The soil conditions are suitable.
  2. The developer pays the cost of trenching and backfilling.
  3. The developer has an approved water and sewer system and improved roads.
  4. The development or subdivision is not unduly speculative and will be developed in a step-by-step manner.
  5. At its option, PEC may install either a front or rear lot system. Front lot construction is the design standard for PEC. Rear lot construction design will be accomplished only where dedicated alley ways are provided.
  6. The developer provides:
    1. Rights-of-way easements and covenants satisfactory to PEC.
    2. A plot of the development showing easements, roads, all underground facilities, finished grades, etc.
    3. The cost of any necessary boring under streets, obstacles or obstructions.
  7. PEC shall provide:
    1. The meter base, which shall be installed by the member on the building, pole or pedestal to which underground service is extended.
    2. PEC shall furnish, install and maintain the underground primary and secondary distribution system up to point of delivery to the member.
Each residence shall be served through an individual meter on the exterior of the residence at a location acceptable to PEC and the developer. In addition, each residence shall be billed under the applicable residential rate schedule.
Where the development or subdivision is not unduly speculative and will be developed in a step-by-step manner, PEC may, for gains in efficiency of construction, waive the above deposit requirement and install the entire electrical distribution system at one time.
Service to a mobile home park will be by special contract only.

IV. Responsibility

It will be the responsibility of the Sr. Manager of Engineering and Power Delivery and the Sr. VP – Administrative Services to properly administer these provisions.

Approved by the Board of Trustees

Effective Date: January 1, 1994
First Revision: April 25, 1997
Second Revision: August 28, 2009
Third Revision: January 28, 2021