1. (a) If a customer advance is required from a bona fide service applicant for service from a company with gross annual receipts of $10 million or more and the bona fide applicant is unable to advance the entire amount due, the utility shall do one of the following:

   1. (1) Allow the applicant to pay the advance over a period of not less than 3 years, with the utility recovering financing costs equal to the utility’s weighted cost of long term debt. The utility may require the applicant to deposit up to one-third of the total customer advance prior to extending service.
   2. (2) Provide information to the customer on financial institutions that may offer financing to the customer for the line extension.
2. (b) When a customer advance is required of a service applicant and an additional customer or customers attach service lines to the main extension within 10 years, the utility shall refund a portion of the advance to the customer in accordance with the utility’s currently effective tariff. Deposits made for additional facilities other than the main extension, such as booster pumps, storage tanks and the like, are contributions in aid of construction and need not be refunded.
3. (c) A utility shall require a customer to pay, in advance, a reasonable charge for service lines and equipment installed on private property for the exclusive use of the customer.

Authority

The provisions of this § 65.22 issued under the Public Utility Code, 66 Pa.C.S. § § 501, 504—506, 1301 and 1501.

Source

The provisions of this § 65.22 adopted February 14, 1997, effective February 15, 1997, 27 Pa.B. 799.

Notes of Decisions

The line extension regulations do not conflict with 66 Pa.C.S. § 501 (relating to character of service and facilities). Popowsky v. Pennsylvania Public Utility Commission, 853 A.2d 1097, 1110 (Pa. Cmwlth. 2004); appeal granted 868 A.2d 454 (Pa. 2005); affirmed 910 A.2d 38 (Pa. 2006).

Agency Not Bound by Court Interpretation of Statutory Provision

In promulgating a regulation to implement a statutory provision, an agency is not bound by a prior court decision interpreting that statutory provision. A regulation must be followed even if prior case law supports a narrower interpretation. Popowsky v. Pennsylvania Public Utility Commission, 853 A.2d 1097, 1106 (Pa. Cmwlth. 2004).

Requester of Utility Extension to Bear Cost

A utility can lawfully require the party requesting an extension of utility facilities to bear the cost thereof, if that party is not a ‘‘bona fide service applicant,’’ if the request entails ‘‘special utility service,’’ or if the facility extension would be ‘‘uneconomic or unreasonable absent an appropriate customer contribution.’’ Shenago Township Board of Supervisors v. Pennsylvania Public Utility Commission, 686 A.2d 910 (Pa. Cmwlth. 1996).