1. (a) Requirements for extension of service.

   1. (1) Extension of facilities shall be made according to the:

      1. (A) Requirements in the Arkansas Public Service Commission’s Special Rules;
      2. (B) Extension of Service Agreement set out in subsection (b) of this section if the applicant is required to pay any cost; and
      3. (C) Utility’s approved extension of facilities tariff as required by the Arkansas Public Service Commission’s Rules of Practice and Procedure, 23 CAR pt. 462.
   2. (2) The cost of the extension shall be based on the most economically feasible route from the utility’s nearest point of connection to the applicant’s point of delivery, consistent with sound engineering design for the utility system.
   3. (3) If the utility sizes facilities in excess of the applicant’s requirements for service, any cost to be paid by the applicant shall be adjusted to reflect only the cost of his or her service requirements.

2. (b) Extension of Service Agreement.

   1. (1) If service will be provided, within thirty (30) days of receipt of the application for service the utility shall:

      1. (A) Provide the Extension of Service Agreement to the applicant; and
      2. (B) Explain any payment options.
   2. (2) If additional time is needed by the utility during this thirty-day period, the utility will notify the applicant in writing of the reason for delay.
   3. (3) If a cost to the applicant will be required to extend service, the utility may require the applicant to sign an Extension of Service Agreement before construction begins.

   4. (4) The Extension of Service Agreement shall include the following:

      1. (A) Name and address of the applicant;
      2. (B) Date of application;
      3. (C) Location and description of the service point;
      4. (D) Summary of the engineering study, if any;
      5. (E) Sketch of the construction route;
      6. (F) Explanation of all costs in reasonable detail;
      7. (G) Estimated starting date of construction;
      8. (H) Estimated completion date of construction;
      9. (I) Terms of payment; and
      10. (J) Customer reimbursement by utility, if applicable.

3. (c) Sharing the extension.

   1. (1) Each utility shall make reasonable efforts to:

      1. (A) Identify and notify residents and businesses in the general area of a proposed extension of service; and
      2. (B) Give them an opportunity to participate in the extension.
   2. (2) If a cost to the applicants will be required to extend service, the utility may require each applicant to sign an Extension of Service Agreement before construction begins.

Codification Notes: This section was promulgated as Rule 3.03 of the General Service Rules prior to codification in the Code of Arkansas Rules.