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REFERENCE TITLE: line extensions; utility infrastructure; charges. |
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State of Arizona Senate Forty-ninth Legislature Second Regular Session 2010
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SB 1198 |
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Introduced by Senators Allen S, Aguirre, Miranda; Representative McGuire: Senators Alvarez, Melvin, Pearce R, Pierce S, Verschoor
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AN ACT
Amending section 40‑361, Arizona Revised Statutes; relating to utilities.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 40-361, Arizona Revised Statutes, is amended to read:
40-361. Public service corporations; line extensions; utility infrastructure; charges; applicability; rules; definitions
A. Charges demanded or received by a public service corporation for any commodity or service shall be just and reasonable. Every unjust or unreasonable charge demanded or received is prohibited and unlawful.
B. Every public service corporation shall furnish and maintain such service, equipment and facilities as will promote the safety, health, comfort and convenience of its patrons, employees and the public, and as will be in all respects adequate, efficient and reasonable.
C. All rules and regulations made by a public service corporation affecting or pertaining to its charges or service to the public shall be just and reasonable.
D. A public service corporation may not charge a customer for the first one thousand feet of a line or service lateral required to extend electric service from a public service corporation's existing permanent facility to the point of delivery if the cost of the line or service lateral ten thousand dollars or less. If the cost of the line or service lateral is more than ten thousand dollars, the public service corporation may conduct a cost analysis, at its own expense, to determine the cost, including all applicable taxes and fees, and require the customer to pay any cost of the line or service lateral that is more than ten thousand dollars.
E. A public service corporation shall offer credits toward the cost of any necessary utility infrastructure in an amount of at least:
1. Five thousand dollars per lot for residential subdivisions not located in a master plan community development.
2. Four thousand dollars per lot for residential subdivisions located in a master plan community development.
F. Lot credits provided under subsection E shall not exceed the actual cost of the necessary utility infrastructure provided to the residential subdivision. The public service corporation may require:
1. The applicants for the residential subdivision to sign an extension agreement with the public service corporation. The extension agreement shall be for a minimum of five years from the activation of the first permanent residential home connection. A Public service corporation may reduce the amount of the credit required in subsection E if the applicant for the residential subdivision requests an extension agreement that exceeds five years.
2. That any additional cost in excess of the per lot credit be paid as a nonrefundable contribution to the public service corporation.
3. A field audit of a residential subdivision twenty‑four months after the execution of an extension agreement to determine the number of permanently connected customers within a development.
4. A refundable advance of any construction costs that exceed the amount credited toward any permanently connected customers as determined at the time of the field audit.
G. A public service corporation shall offer a credit toward the cost of any necessary utility infrastructure in the amount of at least one thousand dollars per lot for a master plan community development. The per Lot credit shall not exceed the actual cost of the necessary utility infrastructure provided to the master plan community development. The public service corporation may require:
1. The applicants for the master plan community development to sign an extension agreement with the public service corporation. The extension agreement shall be for a minimum of five years from the activation of the first permanent residential home connection. A Public service corporation may reduce the amount of the credit required in this subsection if the applicant for the master plan community development requests an extension agreement that exceeds five years.
2. That any additional cost in excess of the per lot credit be paid as a nonrefundable contribution to the public service corporation.
H. A public service corporation shall only charge a customer or applicant for the actual costs associated with the installation of a line or service lateral or for any necessary utility infrastructure provided to a customer or applicant.
I. The public service corporation shall furnish, install and maintain any risers, raceways and termination cabinets necessary for the installation of the corporation's underground service conductors.
J. Subsections D through H do not apply to any public service corporation that does not charge a fee for a service lateral extension to a service applicant.
K. For the purposes of this section:
1. "Master plan community development" means developments that consist of a number of separately subdivided parcels for residential subdivisions.
2. "Necessary utility infrastructure" means any distribution facilities installed to service a development, including feeder lines, cables, conduits, duct banks, manholes, switching cabinets and capaciter banks.
3. "Point of delivery" means:
(a) For above ground service point of delivery, where the utilities' service conductors terminate at the customer's weatherhead or bus riser.
(b) For underground service point of delivery, where the utilities' service conductors terminate in the customer's or developments' service equipment.
4. "Residential subdivision" means any tract of land that has been divided into four or more contiguous lots with an average size of one acre or less.