Electric Service Extensions
Consumers Energy accepts the principle of complete area coverage
in making electric service available to anyone within its assigned
area. The limitations of feasibility established
by the Iowa State Utility Board Rules and Regulations. In all cases,
Consumers Energy will construct, own and maintain all facilities
up to the point of delivery. Consumers Energy will extend electric
service to users on an area coverage basis, without regard to race,
color, religion, sex, age, national origin or handicap.
The point of delivery on overhead construction shall be the end
of the service drop where it is attached to the structure on which
the meter is located. The point of delivery on underground construction
shall be the point of attachment to the meter socket.
Consumers Energy will supply single-phase, 120/140 volt electric
service at a delivery point, or meter location, to be agreed upon
by Consumers Energy and the applicant, such location to be determined
as the best load center available to service all the electrical
requirements of the member that are near enough to be served
from one metering point at 120/140 volts. Consumers Energy will
install and maintain the line and all equipment up to the point
of delivery. The meter and meter socket will also be furnished.
This service is available to all farm and residential locations
where there is a permanent resident.
A mobile home which has had the undercarriage removed, been set
on a permanent foundation and had the license turned in, becomes
a part of the real estate and will be classified as a permanent
residence.
Temporary Service
Where, in the opinion of Consumers Energy, circumstances indicate
that service may be temporary, Consumers Energy will supply temporary
electric delivery service for any purpose, provided the applicant
will make an advance cash construction payment equal to the estimated
labor and overhead costs of installing and removing the service,
plus non-salvageable materials. Electricity consumed will be metered
and billed at the regular applicable price schedule.
Transformer Size
Consumers Energy will determine the size of transformer to be
installed to provide adequate service and voltage regulation for
all types
and classifications of service. Monthly minimum bills will be determined
by transformer capacity required, in accordance with applicable
price schedules.
Electric Energy Sales Estimate
A Consumers Energy representative shall be responsible to the member
for estimating the anticipated electric energy sales from service
supplied from the extension. Such estimates shall be based upon
Consumers Energy's experience in serving similar members, the connected
load of the prospective member, or any estimates of consumption
supplied by the member.
Service Extension Estimating
Costs – 2005 
Charges Associated with Line Extensions
Permanent Single-Phase Extensions and Multi-Phase Line Extensions
A. Definitions
1. Contributions in aid of construction means a nonrefundable cash payment
covering the costs of an extension that are in excess of Cooperative-funded
allowances.
2. Estimated annual revenue shall be calculated based upon the following
factors, including, but not limited to: The size of the facility to be used by the
member, the size and type of equipment to be used by the member, the average annual
amount of service required by the equipment, and the average number of hours per
day and days per year the equipment will be used.
3. Estimated based revenues shall be calculated by subtracting Consumers
Energy’s purchase power costs from the estimated annual revenues.
4. Estimated construction costs shall be calculated using the previous calendar
year’s average construction cost per foot for each type of extension. These costs
will be adjusted annually. The overhead and underground transformer costs,
sectionalizing cabinets, meter cost and facilities built for the convenience of
Consumers Energy are not included, except for the meter loops, pad companions or
meter pedestals which are priced and billed separately.
5. Extension means a distribution or secondary line extension on either public
or private property. A distribution extension is one where the voltage is 7200
volts or higher and a secondary extension is considered to be any line after the
transformer. A service line would be a secondary line on private property running
from the point of delivery to the house or other buildings.
6. Similarly situated member is a member whose annual consumption or service
requirements, as defined by estimated annual revenue, are similar to other members
with approximately the same annual consumption or service requirements.
7. Permanent services shall be defined as any service that is intended to remain
in place on a continuing basis.
B. Single Phase Extensions for Residential, Farm, Grain Bin, Pumps and Other
Permanent Services to be Connected on a Year-Round Basis
1. Distribution Line Extensions on Public Rights-of-Way
a. Consumers Energy will finance and construct overhead distribution line
extensions in the public right-of-way of good engineering design.
b. If the member desires an underground distribution line extension in public
right-of-way where normally the Cooperative would build overhead, the member will
be required to provide a contribution in aid of construction (nonrefundable) for
the difference in cost between overhead and underground within 30 days after
completion.
2. Distribution Line and Secondary Line Extensions on Private Property
a. Consumers Energy will finance and construct overhead or underground
distribution line and secondary line extensions crossing over onto private
property of good engineering design up to $1,500.
i. When the cost of the distribution extension exceeds $1,500, the Cooperative
shall calculate the cost of the extension using its standard costs per foot of
overhead and underground.
ii. When the distribution extension exceeds the above conditions, the member
will be required to provide a contribution in aid of construction (nonrefundable)
within 30 days after completion.
b. Refunds of Contributions of Construction Costs
i. At the request of a member, a refund may be granted if subsequent services
are attached to a distribution line or secondary line extension that required a
contribution in aid of construction at the time of the original construction. The
refund will be calculated on a case-by-case basis. The attaching member(s) may be
required to contribute to the Cooperative the amount of the refund.
C. Single Phase Extensions for Residential Developments and Other Similar
Services
1. Distribution Line Extensions on Public Rights-of-Way Leading Up to the
Development
a. Consumers Energy will finance and construct overhead distribution line
extensions in the public right-of-way leading up to the development, of good
engineering design.
b. If the member desires an underground distribution line extension in public
right-of-way where normally the Cooperative would build overhead, the member will
be required to provide a contribution in aid of construction (nonrefundable) for
the difference in cost between overhead and underground within 30 days after
completion.
2. Distribution Line and Secondary Line Extensions on Private Property
a. Consumers Energy will construct overhead or underground distribution line in
a development to the transformer, of good engineering design, at 75% of the cost
to the developer or builder.
i. The Cooperative will use its standard cost per foot for overhead or
underground in calculating the construction costs.
b. Consumers Energy will finance and construct overhead or underground
secondary line extensions in a development from the transformer to the metering
point, of good engineering design, up to $1,500.
i. When the cost of the secondary line extension exceeds $1,500, the Cooperative
shall calculate the cost of the extension using its standard costs per foot of
overhead or underground, whichever is applicable.
ii. When the distribution extension exceeds the above conditions, the member
will be required to provide a contribution in aid of construction (nonrefundable)
within 30 days after completion.
c. Extensions for members who will not attach to the
distribution or secondary line extension within an acceptable time period, as
determined by the Cooperative.
i. The member will contract with Consumers Energy and
deposit an advance for construction (refundable) equal to the estimated
construction cost no more than 30 days prior to commencement of construction.
d. Refunds of Contributions of Construction Costs
i. At the request of a member, a refund may be
granted if subsequent services are attached to a secondary line extension in a
development that required a contribution in aid of construction at the time of the
original construction. The refund will be calculated on a case-by-case basis. The
attaching member(s) may be required to contribute to the Cooperative the amount
of the refund.
D. Extensions for Commercial Services and Any Three Phase Line
Extensions
1. Plant addition. Consumers Energy will provide all
electric plant at its cost and expense without requiring an advance for
construction except in those circumstances where extensive plant additions are
required before the member can be served, or where the member will not attach
within the agreed upon time period. This will be determined on a case-by-case
basis by the Cooperative. In such instances, Consumers Energy will require either
a contribution or an advance for construction costs from the member.
2. Extensions for members who will attach within the
agreed upon time period.
a. Consumers Energy will finance and make the
extension without an advance for construction, if the estimated construction cost
is less than or equal to three times the estimated base revenue calculated on the
basis of similarly situated members.
b. If the estimated construction cost is greater than
three times the estimated base revenue calculated on the basis of similarly
situated members, the member will contract with Consumers Energy and deposit an
advance for construction (refundable) equal to the estimated construction cost
less three times the estimated base revenue no more than 30 days prior to
commencement of construction.
3. Extensions for members who will not attach within
the agreed upon time period. The member will contract with Consumers Energy and
deposit an advance for construction (refundable) equal to the estimated
construction cost no more than 30 days prior to commencement of construction.
4. Refunds of Advance for Construction Costs
a. At the request of a member, any refunds for a
commercial member will be calculated on a case-by-case basis.
E. Conversion of Single-Phase Service to a Multi-Phase Service at the Member’s
Request
At the request of the member Consumers Energy may convert a single-phase
facility to a multi-phase facility. The member will make a contribution in aid
of construction equal to the difference in cost between the multi-phase facility
to be installed and the retirement value of the single-phase facility to be
removed less three times the estimated additional base revenue for this service.
F. The CEO/General Manager may authorize exceptions to this policy for special
situations that promote economic or community development while still assuring
the return of investment of the Cooperative
For more information or assistance regarding Consumers Energy's
service extension practices, please contact one of the following:
Farm, Rural Residential or Small Business – Paul Sams, psams@consumersenergy.coop,
or 641-752-2296, ext. 102
City, Town or Rural Subdivision – Jeff Paxton, jpaxton@consumersenergy.coop,
or 641-754-1656
Large Business and Industrial Businesses – Dave Stineman, dstineman@consumersenergy.coop,
or 641-754-1645
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