The requirements for extension of multi-phase overhead lines are further defined as follows:
A. New Service Not Calling for Special Requirements:
The Cooperative will furnish service for any new or added poly phase load without imposing any special requirements where all the following situations are found to exist:
- The expected annual revenue from the business to be supplied is estimated to at least equal the Cooperative's new investment to be devoted exclusively to serving the prospective consumer.
- It will not be necessary to make any premature investment in new or reconstructed facilities other than in those facilities that will be devoted exclusively to serving the prospective consumer.
- The non-salvable investment by the Cooperative for the prospective consumer will not be unusually large as compared to the rest of the investment.
- The prospective consumer has a satisfactory credit rating.
- The proposed service is neither strictly temporary nor of uncertain permanency but is expected to be permanent.
B. New Service Calling for Special Requirements:
If, in the case of an application for new or added service one or more of the situations listed above are found not to exist, then the prospective consumer will be subject to certain special requirements in order to qualify for service.
The special requirements may apply separately or in combination, depending upon the number of disqualifying situations that are found.
While many situations definitely call for application of one or another of the special requirements, other situations are not as well defined and consequently need careful consideration and exercise of good judgment in the determination of the special requirements to be applied.
Many factors, such as the nature of the consumer's operations, the expected use of service, the anticipated revenue and the amount of investment by the Cooperative in the necessary facilities, influence the decision as to the special requirements to be applied.
The various situations that may be encountered and the special requirements that are applicable to each are set for in the succeeding paragraphs of this policy.
C. Disqualifying Situations and Special Requirements:
- Insufficient Revenue
If the anticipated revenue is found to be too small in relation to the necessary investment in new facilities, the Cooperative may select one of the following ways by which the prospective consumer may best meet the revenue requirements:a) Signing of an open-term contract to guarantee each year for electric service, an amount equal to the Cooperative's necessary investment in new facilities. An open-term contract is one that shall be effective for a minimum of 5 years and for such further period as the The contract shall be deemed canceled whenever the actual annual revenue received by the Cooperative from the consumer in each of 3 consecutive contract years after the second anniversary of the contract is equal to or greater than the annual revenue guarantee. This option is only available where it is anticipated that the guarantee.
b) Making sufficient contribution of cash so that the Cooperative's net investment in new facilities, devoted exclusively to serving the consumer, is no greater than the anticipated annual revenue.In cases of this kind, the consumer will be required to sign a contract by which he will guarantee and secure both:
(1) To pay annually an amount including use of service equal to the Cooperative's net investment; and
(2) To pay annually in equal monthly installments, for at least 5 years and for such further term as he takes service, an amount in addition to and independent of all other charges and for which no kilowatt-hour use shall be included, equivalent to 11% of the amount of the cash contribution.Consumer's contracts may be adjusted upon any anniversary in which the revenue from use of service has been and may be reasonably expected to be greater than that required to support the Cooperative's net investment in the extension which is devoted exclusively to servicing those consumers.
- Premature Investment
In case of premature investment the Cooperative may require a non-refundable contribution from the prospective consumer in sufficient amount to cover the extra expense to the Cooperative of the premature investment. - High Proportion of Non-salvable Investment
If the amount or proportion of the necessary non-salvable investment by the Cooperative is considered to be too large in comparison with the rest of the investment, then the Cooperative may require a written guarantee of revenue or a non-refundable contribution or a combination of both. - Unsatisfactory Credit Rating
If there is questionable credit, the Cooperative may require a reasonable fee to secure payment of anticipated bills for an extended period or, as an alternative, the Cooperative may require a returnable contribution and a reasonable fee to guarantee payment of current bills.