Line Construction Policy

BACKGROUND:

The Line Construction Policy establishes the guidelines necessary to provide a reliable supply of electrical power to all residential and commercial customers within the Fort Payne Improvement Authority’s (FPIA) service area. This policy is established to ensure fair and equal consideration to anyone requesting service regardless of age, race, sex, national origin, or religious beliefs. The code requirements of the National Electric Safety Code (NESC) and the National Electric Code (NEC) shall be followed as applicable for all construction.

SINGLE PHASE OVERHEAD CONSTRUCTION SERVICES:

FPIA 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, FPIA 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, FPIA will furnish the first 1,000 feet of primary line but will charge to the customer at FPIA’s cost for any other cost associated with the installation. FPIA will furnish an adequate single-phase transformer and metering equipment at no charge to the customer. FPIA 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:

FPIA 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 provide the necessary trenching and install electrical conduit suitable for underground applications, sized as directed by FPIA. This conduit must be installed on both the primary and secondary sides of the service. FPIA will provide the first 1,000 feet of primary wire and 150 feet of secondary wire at no charge to the customer. Customers requesting existing overhead service be converted to underground service will be responsible for the cost of the wire, as well as trenching and conduit. Additional lengths of wire will be charged to the customer at FPIA’s cost per foot of the primary and secondary underground wire. FPIA 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:

FPIA 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 FPIA 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 FPIA 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 Line Supervisor. 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 landowners should furnish a legal description to FPIA for inclusion in the easement form. Easements over additional property needed for service will be obtained by both the landowner and FPIA. FPIA 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 FPIA 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 labor and material plus a 20 percent overhead charge will be used to determine the developer’s charges. 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. 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 FPIA.

The cost of multi-phase service shall be computed. FPIA 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.

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 aid to construction minimum monthly bill shall be established in an amount necessary to recover the established base cost over the contract period. The payment in aid to construction shall be arranged and the industrial power contract signed prior to receiving permanent service.

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

POLICY EXCEPTIONS:

The Board of Directors of FPIA may take exceptions with this policy when determined to be in the best interest of the community and the people we serve. When exercising any exception to the policy the Board will consider the cost of the project and the anticipated economic and societal benefit to the community.

DAMAGE COST RECOVERY:

When assets of the FPIA are damaged due to the negligence or otherwise fault of a member of the public, measures shall be taken to recover the cost of repair of those assets. Actual cost of labor, materials, and equipment will be collected for the repair of the asset. If the cost of repair is more than $500, the costs will be billed to the responsible party in accordance with the following:

  • Labor & Materials – 100% of actual reported
  • Equipment – 50% of actual reported

The total cost will be conveyed to the responsible party in writing. FPIA will work with those at fault to arrive at an agreeable payment plan if necessary.

IMPLEMENTATION RESPONSIBILITY:

All supervisory personnel with FPIA will be responsible to see that this policy is enforced.

Approved by the FPIA Board on September 14, 2021 (see Board Meeting Minutes)