Line Construction Policy

BACKGROUND:

The purpose of this policy is to provide reasonably dependable supply of electrical power to all residential and commercial customers within the Fort Payne Improvement Authority’s service area. This policy is established to assure fair and equal consideration to anyone desiring single-phase service regardless of age, race, sex, national origin, or religious beliefs.

SINGLE PHASE OVERHEAD CONSTRUCTION SERVICES:

The Fort Payne Improvement Authority will extend single phase, overhead, service to all customers at the request of the homeowner, builder, contractor, or store manager only after the appropriate deposits and applications have been completed at the business office. For permanent structures, the Improvement Authority will furnish the first 1,000 feet of primary lines and poles at no cost to the customer. Additional poles and lines will be charged to the customer at the current cost to FPIA per pole and per foot of wire and, if blasting or rock drilling is required, an additional cost per pole as determined by FPIA will be charged. For temporary structures, the Improvement Authority will furnish the first 1,000 feet of primary line, but will charge to the customer at FPIA’s cost per pole and if blasting or rock drilling is required, an additional cost per pole as determined by FPIA will be charged. Further, for all structures, the Improvement Authority will furnish an adequate single-phase transformer and metering equipment at no charge to the customer. The Improvement Authority will furnish 150 feet of secondary wire per installation. Additional lengths of secondary wire will be charged to the customer at FPIA’s cost per foot of wire. Payment of any construction charges must be arranged in advance and be paid in full within 30 days after receiving permanent electric service.

UNDERGROUND CONSTRUCTION CHARGES:

The Fort Payne Improvement will extend single phase service underground to all customers at the request of the homeowner, builder, contractor or store manager only after the appropriate deposits and applications have been filed at the business office. Customers requesting underground service will be required to install electrical conduit suitable for underground applications and sized according to the Fort Payne Improvement Authority. This conduit must be installed on both the primary and secondary sides of the service. The Improvement Authority will provide the first 1,000 feet of primary wire and 150 feet of secondary wire at no charge to the customer. Additional lengths of wire will be charged to the customer at FPIA’s cost per foot of the primary and secondary underground wire. Further, the Improvement Authority will furnish adequate single-phase transformer or pad mount transformer and metering equipment at no charge to the customer. The customer will be responsible for installation of concrete pad and buried conduit. Payment of these charges must be arranged in advance with the billing office. No service will be connected until the arrangements for payment are made with the billing office.

MOBILE HOME SERVICE:

The Fort Payne Improvement Authority will extend service to all mobile homes only after a separate and adequate pole has been installed by the customer for the installation of an electrical utility meter and disconnect switch. The pole must be provided in accordance with the Fort Payne Improvement Authority standards available at our offices and the National Electric Code. A four wire service must be installed from the disconnect switch into the mobile home. These conditions must be met before the electrical service will be connected. See Single Phase Overhead Construction Services for other requirements.

LINE LOCATIONS:

A representative of the Fort Payne Improvement Authority will be responsible for locating all line extensions and marking these extensions on the property. Customers in dispute of a line location have three working days to contest the line with the General Manager or the Operations Manager. Any line changes or modifications after these three days will be charged back to the builder or customer. Lines crossing private property will require a signed easement form filed with the business office prior to receiving electrical service. Private land owners should furnish a legal description to the Improvement Authority for inclusion in the easement form. Easements over additional property needed for service will be obtained by both the land owner and the Improvement Authority. The Fort Payne Improvement Authority will not pay for any easement required on the distribution system.

SUBDIVISION, MOBILE HOME PARKS, OR COMMERCIAL CUSTOMERS:

Utility extensions into any new platted or exempt subdivisions, developments envisioning more than two lots, mobile home park, or commercial customers site shall be constructed at the request of the developer and charged to the developer upon completion of the work. The developer shall submit a plot plan to the Fort Payne Improvement Authority for a preliminary cost estimate. Work orders will be issued in phases depending on construction schedules and cost invoices shall be issued upon completion of each work order. Actual costs for material plus a 20 percent overhead charge will be used to determine the developer’s charges. If blasting or rock drilling is required, an additional cost per pole as determined by FPIA will be charged. The 1,000 foot extension policy stated above does not apply in a new subdivision or mobile home park. Customer services will not be energized until the developer has arranged for payment of these installation costs. Charges in this paragraph will be made regardless if the poles belong the Fort Payne Improvement Authority or BellSouth Telephone Company. Developers may pay for such improvements in full within thirty days or may finance these improvements at no interest as follows:

  • From $0 to $2,500 for up to 12 months;
  • From $2,501 to $5,000 for up to 24 months;
  • From $5,001 and up for up to 36 months.

The business office must approve these arrangements.

MULTI-PHASE ELECTRIC SERVICE:

Customers requesting a new or upgrade in multi-phase service must request such service to the business office of the Fort Payne Improvement Authority. In this request, the customer shall provide a load calculation for the building or facility, establish a delivered voltage, and allow a site visit by Improvement Authority employees.

The cost of multi-phase service shall be computed. Fort Payne Improvement Authority shall base this cost on the average installed cost of equipment. The cost of an average single-phase service shall then be subtracted from the cost of a multi-phase service in order to establish a base cost. The customer’s cost will be calculated based on equipment to be installed at the location. This cost does not include utility line extension see Subdivision, Mobile Home Parks or Commercial Customers for these charges if applicable.

The customer will be required to sign a power supply contract and pay a lump sum or a minimum monthly bill for aid to construction based on the above calculated cost. The length of this contract shall not be less than thirty-six (36) months. The minimum monthly bill shall not be less than $1.00 per KVA of connected transformer capacity. The customer must pay a non-refundable contribution in aid to construction based on the following:
The difference between 36 times the minimum monthly bill (as calculated above) and the base cost of constructing the multi-phase service (as computed above) shall be calculated (i.e. 36 times the minimum monthly bill minus the base cost of construction). If this difference is zero or less, the cost to the customer will be zero. If this difference is greater than zero then the resulting amount will be divided by 36 to derive a minimum monthly bill. In some cases when it is not practical for the customer to sign a power supply contract due to the multi-phase service supplying rental shops or some other similar situation the customer will be required to pay the aid to construction in full. If applicable, with proper management approval, future cost recovery may be calculated and entered into the formula. This should, however, be an exception not a rule. The payment in aid to construction shall be arranged and the industrial power contract signed within thirty days after receiving permanent service.

If the service is terminated for any reason during the above contract period, the customer will be required to pay the entire amount in full and may apply any credits or deposits toward the remaining balance.

POLICY EXCEPTIONS:

The Board of Directors of the Fort Payne Improvement Authority from time to time may take exceptions with this policy for three reasons: First, any request for service in which the estimated revenue will never recover the cost of construction, the customer may be required to pay the entire cost of construction. These charges may be paid based on the repayment schedule set forth above. Second, the Improvement Authority may choose to locate primary lines along existing roadways for future customer benefits. When this occurs, the customer will not be charged for these primary extensions. Third, the Board may participation in the creation of an economic incentive package to recruit new industry. Participation shall be based upon, among other factors, economic feasibility, substantial job creation, and overall community growth.

IMPLEMENTATION RESPONSIBILITY:

All supervisory personnel with the Fort Payne Improvement Authority will be responsible to see that this policy is enforced.

Approved this the 15h day of June 2006.

Original signed by Gary Kennedy, Chairman