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Natural Gas Service Extensions

Availability

Consumers Energy will extend natural gas service to users in conformity with this policy and the rules of the Iowa Utilities Board, to the extent applicable, without regard to race, color, religion, sex, age, national origin or disability. In the various areas where basic gas service is supplied by Consumers Energy, the Cooperative will make extension agreements with its members for extensions, subject to the amount of business secured and the base revenue therefrom, exclusive of the cost of the purchased gas. Where there is insufficient revenue to support the extension, such extensions may require a contribution from the member, under such terms and conditions as may be agreed upon between the member and Consumers Energy.

Charges Associated with Line Extensions

Permanent Line Extensions

• Definitions
  
  
  1. Advance for construction costs are cash payments or surety bonds or an equivalent surety made to Consumers Energy by a member applying for a gas extension, portions of which may be refunded depending on any subsequent connections made to the extensions.
  2. Contribution in aid of construction means a nonrefundable cash payment covering the costs of an extension that are in excess of cooperative-funded allowances.
  3. 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.
  4. Estimated-based revenues shall be calculated by subtracting the cooperative's cost of purchased gas from the estimated annual revenues.
  5. Estimated construction costs shall be calculated using the previous calendar year's average construction cost per foot for each type of extension. The cost of facilities built for the convenience of Consumers Energy are not included. These costs will be adjusted annually.
  6. Extension means a distribution or secondary line extension other than a service line extension.
  7. Service line extension means the piping that extends from the gas main to the meter set riser.
  8. 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.
  9. Permanent service shall be defined as any service that is intended to remain in place on a continuing basis.
  
  
  
• Service Line Extension



1. Contributions in aid of construction for service line extensions.
   
   a. Consumers Energy will finance and construct a service line extension of good engineering design where the length of the extension does not exceed 50 feet on private property or 100 feet in the case polyethylene plastic pipe is used.
   
   b. When the extension exceeds the above conditions, the member will be required to provide a contribution in aid of construction (nonrefundable) within 30 days after completion. The amount of the contribution in aid of construction will be calculated as follows:
   
   
   
   
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 costs 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 costs no more than 30 days prior to commencement of construction.



• Refunds of Advance for Construction Costs



Consumers Energy will refund to the depositor for a period of 10 years, from the date of the original advance a pro rata share for each service attachment to the extension. For each additional service attachment to the extension the depositor will be refunded three times the estimated base revenue for each such service attachment. In no event will the amount to be refunded exceed the amount of the deposit. No interest will be paid on the deposit by Consumers Energy. At the end of the 10-year period the remaining balance of the deposit will be credited to the respective plant account.