UniSource Energy Services are about to deliver another blow to builders in its service area it told the Northern Arizona Building Association at its monthly meeting on Tuesday.
Bill DiJulio, general manager for the region for UniSource, told contractors that the company will no longer offer any free footage, a free pole or reimburse builders for their contributions to company infrastructure in their development areas.
The company used to put in 250 feet of wiring to serve a house or development for free and offer a free pole outside. It also reimbursed the builder when users paid their share of the fees and electric rates for the builder’s investment.
UniSource originally asked the Arizona Corporation Commission to reduce the 250 feet of free electrical line to service a house or development to 200 feet and to allow the company to charge $250 for connecting service.
The ACC , in a decision in May, told the company the builder or developer should bear the full cost of the lines and poles and other infrastructure and return with a plan for passing the cost on to the builders and developers within 30 days.
The new plan, that goes into effect on Dec. 2, requires builders and developers to pay the full cost to “install overhead or underground services and line extensions.”
For contracts in excess of $500,000 costs will be considered “contributions in aid of construction” and will be “grossed up” to include state and federal taxes at a rate of roughly 65 percent. That means a $500,000 job will have an added tax of $325,000 so the job will cost the developer $825,000.
After the developer pays for the installation of the line extensions the lines themselves become property of UniSource.
Copies of the “line extension tariff” may be found at: www.uesaz.com/docs/pricingplans/electric/rulesregselec/pdf
Line extensions are covered in Section 9.
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