25-7.054. Extension of Facilities

(1) Each utility shall develop a standard policy governing the amount of main and/or service extension which will be made free to connect a new customer. The amount of free extension made should be related to the investment that can prudently be made for the anticipated revenue to be received.

(2) A detailed statement of its standard main extension policy shall be filed by each utility as part of its rules and regulations. This policy shall have uniform application and shall be non-discriminatory between consumers whose service requirements are similar.

(3) If a utility and consumer shall be unable to agree in regard to an extension, either party may appeal to the Commission for a review. The Commission, unless special circumstances prevent, will be guided by the following general principles:

(a) Free extensions. The maximum capital investment to be made by the utility for main and service facilities without cost to the customer shall be defined as the maximum allowable construction cost. The maximum allowable construction cost shall equal four times the estimated annual gas revenue to be derived from the facilities less the cost of gas.

(b) Extensions above free limit. When the cost of the extension required to provide service is greater than the free limit specified in paragraph (a) above, the utility may require a non-interest bearing advance in aid of construction of the cost in excess of such free limit provided that:

1. At the end of the first year the utility shall refund to the person paying the advance in aid of construction or his assigns an amount equal to the excess, if any, of the maximum allowable construction cost calculated using actual gas revenues, less the actual cost of gas, over the maximum allowable construction cost used to determine the amount of the advance in aid of construction.

2. For each additional customer taking service at any point on the extension within a period of five (5) years from date of construction, the utility shall refund to the person paying the advance in aid of construction or his assigns an amount by which the maximum allowable construction cost for the new customer exceeds the cost of connecting the customer, provided that an additional main extension shall have not been necessary to serve the additional customer.

3. The aggregate refund to any customer made through the provisions of subparagraphs 1. and 2. above shall at no time exceed the original advance in aid of construction of such customer.

4. The extension shall at all times be the property of the utility and any unrefunded portion of the advance in aid of construction at the end of five (5) years shall be credited to the plant account of the utility.

(c) Nothing in this subsection (3) shall be construed as prohibiting any utility from establishing extension policies more favorable to consumers so long as no discrimination is practiced between consumers.

(4) The customer may be required to install or to pay in full or in part for the service line from the property line to the customer’s piping in accordance with the utility’s filed rules and regulations.

Rulemaking Authority 366.05(1), 350.127(2) FS. Law Implemented 366.05(1) FS. History–New 1-8-75, Repromulgated 5-4-75, Amended 12-7-82, Formerly 25-7.54.