DUKE ENERGY INDIANA RESIDENTIAL POLICY GUIDE TABLE OF CONTENTS PAGE A. PURPOSE ......................................................................................................................2 B. RESPONSIBILITY OF COMPANY .................................................................................2 C. RESPONSIBILITY OF CUSTOMER...............................................................................3 D. SUBDIVISION UNDERGROUND RESIDENTIAL DEVELOPMENT (URD) .................10 E. LINE EXTENSION ADVANCE DEPOSIT (LEAD) ........................................................14 F. TEMPORARY SERVICE ..............................................................................................21 G. MODULAR AND MANUFACTURED/MOBILE HOMES ...............................................23 H. MOBILE HOME METER PEDESTAL (MHMP) ............................................................26 I. MODIFICATION OF EXISTING FACILITIES ................................................................27 J. OVERHEAD TO UNDERGROUND SERVICE CONVERSION ....................................29 K. ELECTRICAL FACILITIES - Swimming Pool Conflicts .............................................32 L. GENERAL PROVISIONS .............................................................................................33 M. DEFINITIONS ...............................................................................................................33 N. REVENUE ESTIMATING..............................................................................................34 O. EXHIBITS......................................................................SEE POLICY GUIDE EXHIBITS DUKE ENERGY INDIANA RESIDENTIAL POLICY GUIDE A. PURPOSE The purpose of this policy is to establish a guideline for extension and modification of the Company's electric lines for residential customers. This policy is in compliance with the Company Electric Tariff Manual and Rules 170 IAC (Indiana Administrative Code) 4-1-27 (formerly Rule 25) and 170 IAC 4-1-28 (formerly Rule 26) in the Standards of Service for Electric Utilities (see Exhibit D) approved by the Indiana Utility Regulatory Commission which became effective March 10, 1976. B. RESPONSIBILITY OF COMPANY 1. Company to design and construct The Company, upon proper application for service, has the obligation to construct, own, operate, and maintain the necessary electrical facilities for delivering service to a specific delivery point, normally the customer's meter in the case of underground service, or weatherhead in the case of overhead service, except: a. For portions of the work which are determined to be the responsibility of the customer. b. For portions of the work which the customer agrees to install, own, and maintain. 2. Company to determine system and route The Company reserves the right to determine the routes of its lines and services. The Company also reserves the right to determine the location of all delivery points and meter bases. See section titled “Responsibility of Customer “ subsection titled “Meter Base Location”. Underground electric Revised 3/27/2015 2 lines and services will be installed to serve a customer when, in the opinion of the Company, such installation is technologically and economically feasible. The decision whether such lines shall be installed overhead or underground shall be made by the Company. 3. Company to provide standard voltage The Company will furnish voltage(s) in accordance with the "Schedule of Rates, Terms, and Conditions Applicable to Electric Service” in the Company Electric Tariff Manual. 4. Company to charge for excess facilities Whenever a customer requests the Company to supply service at more than one location for reasons of different voltages or multiple delivery points per meter, the customer shall be required to pay an excess facilities charge in accordance with Rider No. 53 of the Company Electric Tariff Manual. C. RESPONSIBILITY OF CUSTOMER 1. Application required The customer shall make application to the Company for electric service, requesting either overhead or underground. The customer shall furnish the Company estimated electrical loads and a plat of the area showing the locations of: Lot lines; streets; utility easements; gas, water, and sewer lines; building layouts; streams and buried objects. Application for service and required information should be submitted with sufficient notice so that the customer schedule can be met. Coordination of customer and Company schedules is essential. Customer is responsible for contacting other utilities to determine their individual requirements. Customer shall sign appropriate Site Readiness Checklist, see Exhibit H. 2. Customer to furnish easements Revised 3/27/2015 3 Customer shall sign Company-prepared documents, at no cost to the Company, for all easements and rights-of-way in, on, over, and through private real estate, as requested and approved by the Company, for the installation of electric lines and facilities to serve all customers in a development, including street lights. The customer shall provide an easement covenant in each lot deed or conveyance providing rights-ofway and continuing access to the Company for operation, maintenance, or replacement of the system. 3. Trench route responsibility When underground facilities are to be installed, the customer shall be responsible for the following: a. Clear and grade the trench route to within four (4) inches of the final grade. b. Stake and/or expose all property corners, future permanent structures, and all underground facilities that are customer-owned. c. Maintain the grade and clearance of trench routes during and subsequent to the Company's work. Any damage to persons or property resulting from the failure of the customer, or the successors or assigns thereof, to maintain said clearance or to establish a grade that will provide a depth for the Company's underground system of at least thirty-six (36) inches below the surface of the ground, shall be assumed and paid for by the customer, or the successors or assigns thereof responsible for such failure. d. Not to provide the trench for underground services (for both new underground services and existing overhead services converted to underground). Customers, however, are allowed to provide trenching to install an underground system “backbone” in accordance with Company standards as verified by Company representative. A “backbone” is defined as the conduit network that will be used during Company installation of primary, secondary, and service conductor. i.e. A subdivision developer can install the conduit network as Revised 3/27/2015 4 prescribed by the Company representative. (See section titled “Subdivision Underground Residential Development (URD,” subsection titled “Trenching”). 4. Customer to protect landscaping When underground facilities are to be installed, the customer shall be responsible for protection of shrubs, trees, grass, and other landscaping from the Company’s equipment during construction and maintenance of the underground system. The customer shall also be responsible for restoration of the ground surface of the trench cover to its original condition where required, except in those cases where the Company has agreed to do so. 5. Customer to furnish conduit The customer shall provide, own and maintain an adequately sized conduit (or conduits) for the underground cables that are to be installed under surface obstructions (road crossings, driveways, walks, decks, patios, etc.). If such surface obstruction is abutting the point of service, the conduit shall extend from the point of service to a point at least two (2) feet beyond any pavement or similar surface obstruction (decks, patios, etc.). For other non-abutting surface obstructions, provide conduit to extend at least two feet on either side. The customer shall also provide necessary conduits when the point of service is a sealed junction box on a concrete pad. 6. Customer to furnish conductor Customer to furnish, install, own, and maintain, at their sole cost and expense, all electrical conductor(s) approved by the Company, on customer's side of the delivery point. 7. Customer to furnish space The customer shall furnish space for metering, transformers, guards and other equipment. The customer shall provide, at locations approved by the Company and at no cost to the Company, suitable structure and/or Revised 3/27/2015 5 space for the installation of the Company's transformers and/or metering equipment. The customer shall also install, as required by the Company, meter mounting devices and associated conduits approved by the Company. Meters and associated equipment shall be located on the outside of a structure and shall be accessible and protected. 8. Customer may install and own service lines The customer has the right to install and own service lines (defined as the conductors and equipment for delivering energy, not to exceed 600 volts from the electrical supply system to the wiring system of the premises served) including trenching and backfilling, subject to such reasonable specifications and inspections as prescribed by the Company. The cost of such work done by the customer shall not be included in the estimated cost to serve. If the customer installs (and therefore owns) the service conductors, the customer is responsible for meeting all appropriate NEC codes (conductor size, etc.), as well as being responsible for the operation and maintenance of such service conductors. As applicable, the Company will install, own, operate and maintain the riser assembly (located on the Company’s pole) and/or handhole/pedestal for the underground service installed/owned by the customer (the cost of installing this riser assembly and/or handhole/pedestal will be included in the total estimated cost to serve the customer). The Company will make all connections at both the transformer/handhole/pedestal and the meter base (or weatherhead). A tag will be placed at both the transformer/handhole/pedestal and the meter base indicating a customer owned service. A note of ownership will also be made on the work order and the Company’s asset management records. The Company continues to reserve the right to determine the location of the meter base. See section titled “Responsibility of Customer“ subsection titled “Meter Base Location” regarding meter base location. 9. Customer to provide and install meter base Customer must provide and install all self-contained single phase and three phase meter bases 400A (320A rating) and smaller. The Company Revised 3/27/2015 6 will supply all non self-contained (instrument metering) meter bases. Refer to Meter Base Guidelines (LF 27-223) for specific information on approved meter bases (See Exhibit I). For details on Mobile Home Meter Pedestals, see section titled “Mobile Home Meter Pedestal (MHMP)”. The Company continues to reserve the right to determine the location of the meter base. See section titled “Responsibility of Customer“ subsection titled “Meter Base Location.” 10. Meter Base Location The Company reserves the right to determine the location of all delivery points and meter bases (whether the Company or the customer owns the service). It is recommended that the meter base shall be mounted at the point on the home that is closest to the company electrical source. Company preference is to not allow meters on the backside of a home. The official street address of the home shall identify the front of the home. a. Underground Service 1) Duke Energy reserves the right to determine final meter location. It is recommended that the meter base shall be mounted at the point on the home that is closest to the company electrical source. See exceptions for Manufactured/Mobile homes in section titled “Modular and Manufactured/Mobile Homes.” 2) The following are exceptions to the location of the meter base (a) Duplexes, Condominiums, Apartments & Multiple Structures Occupancy Company’s first preference is to have the meter base mounted on the sides or the front; however, this may not be practical in some instances. 1.) The Company will continue to allow the double gang meter on the back in the middle of the unit. Revised 3/27/2015 7 2.) If the duplex is a condo then each customer is an owner and the property line goes right through the middle of the unit. 3.) If the unit has a firewall extending through the roof we could provide 2 services. Company preference is one service per structure. If the customer does request the second service, the customer shall pay a non-refundable payment (prior to construction) equal to the cost of the second service (no revenue credit shall be applied). (b) Manufactured/Mobile Homes See exceptions for Manufactured/Mobile homes in section titled “Modular and Manufactured/Mobile Homes.” b. Overhead Service For overhead services, meter bases will generally be mounted at a point on the home closest to the source of delivery. Meter bases will be allowed to be mounted on the back of the home when the company facilities are rear lot design. c. Service Disconnect Location The intent of the National Electric Code (NEC) is to install the service equipment (meter base) on the structure and mount the main electrical panel on the opposite side of the wall. This allows a firefighter to locate the meter base on the outside of the structure and quickly find the main electrical panel inside the structure to disconnect service. A customer with a basement can run service entrance conductors out of the bottom of the meter base and go down the exterior of the structure and enter the basement to locate the main electrical panel. A firefighter could see the service entrance going down the exterior and know the main electrical panel would be in the basement. Also, the customer could run service entrance conductor out of the meter base on the outside of the structure (for a reasonable distance) and whenever they enter the structure locate the main electrical panel. The firefighter could follow the service entrance on Revised 3/27/2015 8 the outside of the structure and locate the entrance of the service to the structure and know where the main electrical panel would be located. The final option is to install a Weather Proof (WP) Disconnect at the meter base, and then run the service entrance conductors out of the WP disconnect and go into the structure at any location (i.e. crawl space, attic, etc.). The firefighter could disconnect the service at the WP Disconnect. If a WP Disconnect is located on the outside, it now becomes the main electrical panel and a four wire service is required into the sub-panel inside. This sub-panel now must have the neutral and grounding bus separated. 11. Customer to pay charges prior to construction All Line Extension Advanced Deposit (LEAD) payments and nonrefundable contributions are required to be paid by the customer to the Company prior to the Company beginning construction. Standard Temporary charges are exceptions. These payments may be made by the customer after Company construction is completed. See section titled “Line Extension Advance Deposit (LEAD)”. 12. Customer's work to meet standards Any work performed by the customer shall be done in accordance with the most recent issue of the Company's Distribution Standards Manual (for construction) and other Company specifications, and shall meet any applicable requirements of federal, state and local codes, whichever is the most stringent. The timely completion of such work by the customer shall be a prerequisite of the Company's obligation to perform its work. 13. Customer to pay for relocations due to accel/de-accel lanes Accel/de-accel road-widening lanes are typically found near entrances to highly-trafficked areas (subdivisions, strip malls, etc..). When a customer requests existing Company facilities to be relocated due to the installation of a new accel/de-accel lane, the customer will be required to pay all costs associated with such relocation. There are exceptions to this policy. In general, if the cost of installing the accel/de-accel lane is paid by the customer (directly or through impact fees), then the customer shall pay Revised 3/27/2015 9 the cost to relocate the Company’s facilities. If the cost of installing the accel/de-accel lane is paid for by a government agency (using tax dollars), then the Company shall pay the cost to relocate the Company’s facilities. NOTE: Only facilities that are required to be relocated due to being in the way of acceleration and de-acceleration lanes need to be relocated back to newly dedicated right-of-way line. Other facilities (not in the way of acceleration and de-acceleration lanes) do not necessarily need to be relocated to new right-of-way line. D. SUBDIVISION, APARTMENT, TOWNHOUSE, CONDOMINIUM, MOBILE HOME UNDERGROUND RESIDENTIAL DEVELOPMENT (URD) 1. Developer to notify Company of new development Sufficient notice is required to develop the electric utility site layout in order to meet the development construction schedule. Information detailed on the Electric Service Information Form Exhibit K should be submitted with official project plans. In order to meet deadlines, coordination of work schedules is essential. Developer has responsibility to immediately notify Company representative of any changes in project scope. The Company will begin the design of the electrical facilities when a copy of the final plat is received. The Company will provide conduit requirements and road crossings within 30 days of receiving final prints. 2. Company to design according to Company standards The engineering staff shall apply the latest Company Standards when designing underground residential systems. Service to all subdivisions shall be engineered with the most economical design. All subdivisions shall apply the “front” lot design versus the rear lot design (an exception to this standard will be for Mobile Home Parks - “rear” lot design is acceptable). Front lot design is defined as serving the customer utilizing Company facilities located in front of the lot relative to the street address of the lot. Rear lot design is defined as serving the customer utilizing Company Revised 3/27/2015 10 facilities located in the rear of the lot relative to the street address. All padmounted transformers shall be located within 25’ of the pavement. Strong consideration will be given to installing the primary on ONLY one side of the street. Normally, this will be the side opposite the side of the street that the sewer and water system is installed. Emphasis should be given to using a radial system versus a loop system unless the economics and/or loading suggest the use of a loop system. The Company reserves the right to approve the location of all delivery points and meter bases. The meter base shall be mounted at the point on the home that is closest to the electrical source. 3. Easements Electric or general utility easements must be shown on the development plat along with the proper legal description of the easement before it is recorded. These easements must be usable for utility construction. Revisions and or additions to these easements may be required. The Developer will obtain and convey any easements required to provide utility service to the property, including third party easements, at no charge to the Company. 4. Pre-Construction Meeting Prior to the start of electric utility construction, a pre-construction meeting may be scheduled between Duke Energy Indiana representatives and the residential Developer. Please see the Site Readiness Checklist Exhibit "H" for site requirements and Developer responsibilities. Customer owned facilities must be marked prior to the start of utility construction. Damage to customer facilities during the installation of the electrical facilities that are found to be incorrectly marked will be the responsibility of the Developer. If customer-owned facilities are correctly marked by the Developer and damaged by the Company, those facilities will be restored, repaired, or replaced by the Company at its expense. The Developer may undertake the responsibility of such repair, replacement or restoration, with the written consent of the Company. If the Developer undertakes such Revised 3/27/2015 11 activities without the consent of the Company, Developer shall be solely responsible for any and all expenses incurred. 5. Nearest Source to be Utilized The company will serve the subdivision from the closest primary source to the new development. This may require obtaining an easement over an existing subdivision lot to extend into a new development. It is not recommended to build a line extension along public right of way (i.e. road, street, etc.) to avoid the work required to obtain an easement. 6. 60% fill rate to be applied for revenue credits When calculating the revenue credit for service to a new subdivision, a 2.5 year estimated revenue with a 60% fill rate shall be used. For further details, see section titled “Line Extension Advance Deposit (LEAD)” subsection titled “Procedure for calculating the LEAD” for Residential subdivisions, manufactured housing communities, and individuallymetered residential complexes. 7. Trenching The Developer shall provide trenching, conduits, etc. for the underground system (excluding services) to reduce his contribution to the Company. NEMA (National Electrical Manufacturers Association) approved schedule 40 PVC conduit shall be installed at a minimum depth of 36 inches and no more than 48 inches deep at the endpoints. When the Developer does provide the trenching for the subdivision he/she shall provide a complete conduit system (this will allow the Developer to close the trench for safety reasons). The Developer shall provide and install all conduits for road crossings. The ducts should be extended to the edge of the road right-of-way and located within 3' of the intersection of the lot lines with the right of way at all locations specified by the Company representative. The Developer shall be required to install a continuous pull cord in each conduit run to help with conductor installation, cap both ends of the conduit(s) provided and mark the location of the ends above ground (the Developer is responsible for the integrity of the conduit system until the Company’s facilities are installed). The Developer will be required Revised 3/27/2015 12 to follow Company specifications for installation. The developer should contact the other utilities to determine their specific street crossing requirements. Erosion control devices must be temporarily removed from the utility trench area and reinstalled when the excavation backfill work is completed. The relocation of and restoration of erosion control devices (seed, straw, and erosion control fences) to allow electric utility construction is the responsibility of the Developer. Additional charges will be applied for rocky soil conditions. No rock, fill, or excess soil will be hauled away or moved from the Company’s trenching area. When rock is encountered, the Owner/Developer will be notified and given the option to 1) authorize additional charges for the Company to complete the work or 2) make arrangements for rock excavation at their expense. If the Developer chooses to do the excavation in the rocky area, they must provide a complete conduit system in compliance with Company specifications. This will allow the developer to close the trench for safety reasons. The electric utility trench excavation is completed using standard "construction type" backfilling practices. The trench will be back-filled and mounded. Any additional restoration is the responsibility of the Developer. 8. Relocation of Company facilities for accel/de-accel lanes The cost to move existing facilities for acceleration and de-acceleration lanes shall be calculated separate from the subdivision development. See section titled “Responsibility of Customer,” subsection titled “Customer to pay for relocations due to accel/de-accel lanes” regarding payment of costs for the relocation of Company facilities due to accel/de-accel lanes. 9. Developer requests The Company respresentative should keep in mind that other options are available at the developer’s request providing the Developer pays the additional cost (excluding rear lot UG backbone systems). The Developer shall pay all additional costs prior to the start of construction. Revised 3/27/2015 13 E. LINE EXTENSION ADVANCE DEPOSIT (LEAD) 1. General The following procedures have been written in accordance with Standard Contract Rider No. 52 "Line Extension - Advance Deposit" of Duke Energy Indiana’s Electric Tariff Manual. The Company's policy is to extend its lines and provide the necessary facilities to serve the customer at a single delivery point, without charge, when the estimated revenue justifies the cost of the extension. However, when the estimated revenue is insufficient to cover installation costs, a LEAD may be required. The customer's estimated revenue should not be used to justify the Company's additional investment in providing excess facilities. Provisions for excess facilities have been made in Standard Contract Rider No. 53 of the Company Electric Tariff Manual. 2. Requirements for LEAD Whenever, in the opinion of the Company, either (i) the necessary expenditure to construct an extension of facilities for service to the customer is not warranted by the Company's estimate of prospective revenues to be derived therefrom, or (ii) whenever, the permanence of the customer's load is questionable, the Company may require the customer to make a LEAD to cover a portion of the Company's expense of extending its electric facilities and furnishing and installing the necessary transformation, metering, and protective equipment to supply electric service to the customer's premises. 3. Payment of LEAD Any LEAD required to be made to the Company by a customer shall be made prior to the start of construction. At the customer’s request, a letter (Exhibit C) can be sent as a receipt. 4. Facilities to be and remain property of the Company Revised 3/27/2015 14 The payment of a LEAD to the Company by the customer shall not be construed as conferring upon the customer any title to or right of property in the facilities constructed or provided by the Company, and the title to such facilities shall at all times be and remain in the Company. 5. Procedure for calculating the LEAD The Company desires to design and build the most economical, safe, cost effective system to serve the project. The revenue credit the Company expects to receive based off estimated loading should only be applied to this least-cost method to serve. Any work requested by a customer/developer that is considered above and beyond this least-cost method should be reimbursed 100% by that customer/developer with no revenue credits applied (this is a non-refundable payment, and payment is required prior to construction). When a customer/developer requests electric service requiring a line extension, the following guidelines/calculations should be used to determine if the customer/developer is required to pay a LEAD (Rider No. 52 applies). The “Line Extension Advance Deposit Calculation”, form SF 96-3654 is available for use in Exhibit A. If the customer desires additional information on how the LEAD was derived, a copy of the “Line Extension Advance Deposit Calculation” form SF 96-3654 (Exhibit A), with cover letter (Exhibit B-1) will be provided to the customer. a. Individual permanent residential customer 1) Total estimated cost of extending standard facilities essential to serve the customer including construction, retirement and maintenance of existing facilities. These costs should not include any customer requested additional work that is non standard and not essential to serve the customer. Such costs should be handled separately and be reimbursed 100% by the customer (prior to construction) with no revenue credits applied. Example: Relocating an existing pole at the customer’s request, when we do not need to replace/move the pole. Revised 3/27/2015 15 Example: Customer wants the Company’s facilities specifically located/relocated somewhere for aesthetics reasons only, and by doing so the cost of the job is significantly increased. 2) Minus, estimated salvage value of existing facilities being retired (including scrap). 3) Minus, estimated cost of system improvement work that is not a part of the standard facilities essential to serve the customer. System improvement work should include system improvement work that would have been done/necessary regardless of the work required to provide service to the customer. Example: Replacing rotten pole, changing out transformer, or other facilities, due to existing overload, etc. Also, any work being done entirely for the Company’s benefit. Example: Difference in cost of upgrading existing wire size (necessary to provide service to the customer) versus the Company’s choice to install larger wire size for general future load growth. System improvement work should not include work that is required to provide service to the customer, and would not have been done or otherwise necessary. Example: Changing out riser pole for additional height, class, etc. , in order to provide service to the customer. 4) Minus, the total revenue, as estimated by the Company (using the Revenue Calculation Tool - RCT), for a period of two and one half (2.5) years. b. Residential subdivisions, manufactured housing communities, and individually-metered residential complexes Revised 3/27/2015 16 1) Total estimated cost of extending standard facilities essential to serve the planned subdivision including construction, retirement and maintenance of existing facilities. These costs should include the cost of the underground service for each lot (blanket services) and associated meter. These costs should not include any additional work that is non standard and not essential to serve the planned subdivision. Such costs will be handled separately and be reimbursed 100% by the Developer (prior to construction)with no revenue credits applied. Example: Relocating existing poles along right-of-way for subdivision entrance and/or deceleration/acceleration lanes. Example: Developer wants the Company’s facilities specifically located/relocated somewhere for aesthetics reasons only, and by doing so the cost of the job is significantly increased. 2) Minus, estimated salvage value of existing facilities being retired (including scrap). 3) Minus, estimated cost of system improvement work that is not a part of the standard facilities essential to serve the subdivision. System improvement work should include system improvement work that would have been done/necessary regardless of the work to provide service to the development. Example: Replacing rotten pole, changing out transformer, or other facilities, due to existing overload, etc. Also, any work being done entirely for the Company’s benefit: Example: Difference in cost of upgrading existing wire size (necessary to provide service to the development) versus the Revised 3/27/2015 17 Company’s choice to install larger wire size for future general load growth. System improvement work should not include work that is required to provide service to the development, and would not have been done or otherwise necessary. Example: Changing out riser pole for additional height, class, etc., in order to provide service to the development. Example: Changing out pole for additional height, class, etc., due to new crossing over a public roadway. 4) Minus, the total revenue, as estimated by the Company (using the Revenue Calculation Tool - RCT), for a period of two and one half (2.5) years, for sixty (60) percent of the number of lots used for residential dwelling units. A subdivision is a minimum of 5 contiguous lots. This calculated revenue should only include the lots to which facilities are being installed at that time. Future sections of a planned subdivision should not receive revenue credit until those sections are developed. As a guideline, a section of lots should only be given revenue as it is developed, meaning the streets, etc. are going in at that time. Example: A Developer presents plans for a 500 lot subdivision and is putting in the streets, etc. for 100 lots at this time. Revenue credit should only be given for sixty (60) percent of these 100 lots at this time to offset all construction costs to be incurred at this time. Example: Subdivision plans require the Company to install a padmount switchgear in order to feed present, as well as future, planned sections of the subdivision. The costs of the switchgear should be included in #1 costs above and revenue credit should be given only for the number of lots Revised 3/27/2015 18 that are being developed at this time - streets, etc. are going in at this time. 6. Refund of LEAD - Limitations a. The Company shall make refund of the customer’s LEAD for each additional customer connected to the facilities, for which the LEAD was required, in an amount by which two and one-half (2.5) times the estimated annual revenue of each new customer exceeds the cost of connecting such new customer, provided, that the total amount so refunded shall not exceed either the amount of customer’s original LEAD or the remaining balance at the time of such refund. In accordance with Rider No. 52 of the Company Electric Tariff Manual (See Exhibit E) and Rule 170 IAC 4-1-27 (formerly Rule 25) in the Standards of Service for Electric Utilities (See Exhibit D). Note #1: To clarify the above phrase “for which the LEAD was required”, for residential subdivisions, manufactured housing communities, and individually metered residential complexes where a 60% fill rate is used for estimating the revenue credit, no refund of the LEAD is due to the customer if the actual fill rate is greater than 60%. The 60% is a Company-wide average fill rate to be used by all areas, even though some areas may have a higher or lower actual fill rate. Also, when the Company gives a revenue credit with a 60% fill rate, it is assuming that the entire 60% of lots is generating revenue for 2.5 years from the day the backbone system was installed. However, as this is never the case, the Company is giving more revenue credit than is actually realized if the 60% fill rate is met within the 2.5 years. A refund to the customer, however, may be due if additional customers are connected to the facilities for which the LEAD was required (i.e. new section added, etc.). b. If at the expiration of six (6) years from the date of commencement of the service in respect of which the LEAD is made, said LEAD shall not have been wholly refunded in accordance with the provisions of the immediately preceding paragraph hereof, the portion of said LEAD then remaining in the Company’s possession shall be retained by the Revised 3/27/2015 19 Company as its sole property, and the Company shall not be required to make further credits in respect thereof. In accordance with Rider No. 52 of the Company Electric Tariff Manual (See Exhibit E). c. If, before the expiration of six (6) years after commencement of service, the customer shall order the service discontinued and said service shall not be resumed within a period of six (6) months from the date of such discontinuance, the Company may terminate the agreement for service and thereafter shall be freed from any obligation to make any further refunds in respect of the customer’s said LEAD, and shall have the right and option, at any time thereafter and without notice to the customer, to dismantle and remove all or any part of its facilities installed for the purpose of supplying electric service to customer’s premises. In accordance with Rider No. 52 of the Company Electric Tariff Manual (See Exhibit E). QUESTIONS AND ANSWERS: Q. How do we calculate the revenue credit for residential subdivisions without knowing house size and type of heat? A. This is a judgment decision. Factors to be considered should be: (1) the developer's past record; (2) the environment of the surrounding area and houses; (3) the availability of other fuels. Q. If more than 60% of the lots have received permanent service, do we provide any type of refund on the remaining lots if we provide permanent service to them within 2.5 years of the date the backbone was installed? A. No, a refund would not be made. The 60% fill rate is a Company-wide average fill rate. The only way a refund may occur is if additional customers are connected to the facilities for which the LEAD was required (i.e. new section added, etc.). Q. When does the six-year period start? Revised 3/27/2015 20 A. The six-year period starts when the first permanent meter is installed. Q. A customer which is now served single phase (120/240 volt) requests threephase service. What should the customer pay? A. The charge to the customer would be the excess cost to extend threephase facilities versus the estimated increased two and one half (2.5) year revenue over the existing revenue. F. TEMPORARY SERVICE 1. General When a customer requests electric service to a premise where the service will be temporary (usually less than one year), the customer shall pay a non-refundable contribution for such temporary service (temporary services are defined below as either “Standard” or “Non-Standard”). Examples of such temporary services include; service during construction of permanent structure, service to construction trailers, service to recreation vehicles, short-term farm service, etc. 2. “Standard” Temporary Service a. Overhead Where only a service drop is required (secondary voltage is present and within 100 feet of customer’s meter structure), the customer shall pay a non-refundable contribution in the amount of $200. This “Standard” overhead temporary service shall be no greater than 100’ in length and the attachment height at the customer’s meter structure must be tall enough to allow proper ground clearance for the service drop in accordance with the National Electric Safety Code (NESC). b. Underground Where only connections are necessary in an existing padmounted transformer or secondary junction cabinet, the customer shall pay a Revised 3/27/2015 21 non-refundable contribution in the amount of $120. The customer shall provide the meter structure and the service conductor. If the customer meter structure is within five (5) feet of the transformer or secondary junction cabinet, the company will provide the trench and bury the customer service conductor. If the customer meter structure is greater than five (5) feet from the transformer or secondary junction cabinet the customer shall provide the trench and bury the customer service conductor or install in conduit in accordance with the NEC. The customer shall coil at least 10’ of conductor for company representative to make final temporary connections. 3. “Non-Standard” Temporary Service Temporary services which require the Company to install and remove electric facilities in addition to the electric facilities provided by the Company for a “Standard” temporary service (anything more than a service drop) are defined as “Non-Standard” temporary services. For such “Non-Standard” temporary services, the Company shall require the customer to pay a non-refundable contribution using the following method (providing that these facilities are not part of the permanent service): a. The estimated cost of constructing the facilities to serve customer (including the service), including appropriate loadings and overheads. b. Plus, the estimated cost of removing said facilities and returning the materials to the Company storeroom, including appropriate loadings and overheads. c. Minus, the estimated value of salvaged materials to be returned to the Company storeroom when the service is removed (including scrap). d. No revenue credit shall be applied. The “Non-Standard” temporary service charge (non-refundable contribution) is required to be paid prior to construction. If, in the opinion of the Company, the non-permanent facilities becomes permanent, such Revised 3/27/2015 22 payment shall be recalculated in accordance with the section titled “Line Extension Advance Deposit (LEAD)”. G. MODULAR AND MANUFACTURED/MOBILE HOMES 1. Definitions Modular Home - Defined as similar to a “stick” built home you would find built on a home site. The only difference is that it is constructed in a factory. It must meet all State requirements and can have the service the same as a stick built home. The meter base can be mounted on the home and a three wire service would run from the meter base into the main electrical panel. Many times the term “Modular” is used by the customer and dealer when in reality they are referring to a “Manufactured” home. Manufactured/Mobile Home - Defined as a home built to HUD specifications, having a HUD label and a label indicating the requirement of a 4-wire service (located at the left rear section of the home looking at the hitch end). Typically in the past, this would have been known as a “Mobile” home. In accordance with the NEC, the following applies: A meter base (and disconnect) can be mounted on a double-wide (sectional) Manufactured home unless the home is located in a mobile home park (a meter base cannot be mounted on a single-wide Manufactured home (or mobile home) no matter where the home is located). At this time, areas that have local or county inspectors can approve this type of installation. In areas lacking inspectors, installation shall be completed in accordance with the latest NEC code. In addition, to allow the meter base (and disconnect) to be mounted on the home, the dealer must furnish: A letter and drawing from the manufacturer or dealer detailing that the home complies with Article 230 of the NEC. This letter should explain that this home can have service equipment mounted on the home and should state that the dealer is an authorized representative of the manufacturer concerning the installation of the Revised 3/27/2015 23 service equipment. The drawing should be an approved drawing from organizations (i.e.: RADCO, UL or PE stamped). The drawing should show detail information as how and where to mount the service equipment. A ground electrode must be installed at the service equipment site. A four-wire system will still be used. This means a disconnect must be mounted outside below the meter. A four-wire system will be wired into the manufactured home from the disconnect. 2. Modular Homes For all Modular homes (whether the meter base is mounted on the Modular Home or the customer uses a customer owned MHMP (Mobile Home Meter Pedestal), or other customer owned meter structure), see section titled “Responsibility of Customer” subsection titled “Meter Base Location” for meter base location requirements. 3. Manufactured/Mobile homes - located within a Manufactured/Mobile Home Park Note: see section titled “Definitions” for definition of a Manufactured/ Mobile Home Park For both single-wide and double-wide (sectional) manufactured/mobile homes located in a Manufactured/Mobile Home Park, the following applies: a. Meter cannot be mounted on the home. b. If a customer installed MHMP (Mobile Home Meter Pedestal) or other meter structure is used, its installed location shall be in accordance with the NEC. Customer installed MHMPs are installed, owned and maintained by the Customer and should meet the Company requirements for MHMPs as listed in the “Duke Energy Indiana Meter Base Guidelines” (See Exhibit I). Revised 3/27/2015 24 4. Manufactured/Mobile homes - not located within a Manufactured/Mobile Home Park Note: see section titled “Definitions” for definition of a Manufactured/ Mobile Home Park. a. Single-wide 1) Meter cannot be mounted on the home. 2) If a customer installed MHMP (Mobile Home Meter Pedestal), or other meter structure, is used, its installed location shall be in accordance with the NEC. If its location is other than the opposite end of the hitch and six (6) feet from the side of the home, We will not allow the MHMP (or other meter structure) to be installed behind the home. Customer installed MHMPs are installed, owned and maintained by the Customer and should meet the Company requirements for MHMPs as listed in the “Duke Energy Indiana Meter Base Guidelines” (form LF 27-223 – See Exhibit I and J). b. Double-wide (Sectional) 1) If the meter base is mounted on the home (see above requirements for allowing the mounting of a meter base on a Manufactured home), see section titled “Responsibility of Customer” subsection titled “Meter Base Location” for meter base location requirements. 2) If a customer installed MHMP (Mobile Home Meter Pedestal), or other meter structure, is used, its installed location shall be in accordance with the NEC. If its location is other than the opposite end of the hitch and six (6) feet from the side of the home, We will not allow the MHMP (or other meter structure) to be installed behind the home. Customer installed MHMPs are installed, owned and maintained by the Customer and should meet the Company requirements for MHMPs as listed in the “Duke Energy Indiana Meter Base Guidelines” (form LF 27-223 – See Exhibit I and J). Revised 3/27/2015 25 H. MOBILE HOME METER PEDESTAL(S) (MHMP) 1. General The company will no longer provide to customers, newly installed Company-owned MHMP. Existing Company installed MHMP will continue to be owned and maintained by the Company. Relocations of existing Company-owned MHMP in existing manufactured home parks is prohibited. All newly relocated MHMP locations must be customer-owned. The customer has the option of supplying their own MHMP or other customer owned meter structure. Customer installed MHMP are installed, owned and maintained by the customer and should meet the Company requirements for MHMP as listed in the “Duke Energy Indiana Meter Base Guidelines” (Customer-owned MHMP will require the customer to own, install, and maintain the service conductor from their MHMP to their manufactured home. The customer should allow the Company to loop in/out of the customer owned MHMP to feed on to other MHMP. Failure on the customer’s part to allow the Company to loop in/out of the customer owned MHMP will require the customer to own, install and maintain the service conductor from their MHMP to the Company source (transformer, secondary pedestal, etc.). Also, failure on the customers part to provide a MHMP meeting the Company’s guidelines as listed in the “Duke Energy Indiana Meter Base Guidelines” will require the customer to own, install and maintain the service conductor from their MHMP to the Company source (transformer, secondary pedestal, etc.). 2. Additional circuit breakers for existing Company-owned MHMP 1) At the request of the customer, the Company will provide additional circuit breaker(s) for Company-owned MHMP. The total circuit breaker amperes allowed may be limited to an installed aggregate of 200 amperes per NEC. The following non-refundable fees shall apply (payment is required prior to providing the breaker): (a) A 30-ampere, 240-volt, double-pole breaker at an additional installed cost of $30. Revised 3/27/2015 26 (b) A 50-ampere, 240-volt, double-pole breaker at an additional installed cost of $30. (c) A 100-ampere, 240-volt, double-pole breaker at an additional cost of $30. 2) The Company will only provide and install the auxiliary breakers listed above and a MHMP riser conduit/raceway if required. The conduit/raceway is installed inside the MHMP to protect the conductor. No other size of auxiliary breaker shall be utilized. 3) The customer is to furnish and have ready for installation all electrical conductors. The Company will install the conductors in the existing MHMP riser conduit/raceway and connect to the new breaker. 4) The customer shall furnish, install, and maintain any additional mechanical protection necessary and shall provide, at his terminal equipment, all additionally required overcurrent protection, including ground fault protection. I. MODIFICATION OF EXISTING FACILITIES 1. Company has adequate facilities When customer requests (for their convenience or by their actions) require that Company facilities, which are adequate to serve the customer, be redesigned, re-engineered, relocated, removed, modified, or reinstalled, Rule 170 IAC 4-1-28 in the Standards of Service for Electric Utilities (see Exhibit D) will apply (this includes relocations due to accel/de-accel lanes – see section titled “Responsibility of Customer,” subsection titled “Customer to pay for relocations due to accel/de-accel lanes”). The Company shall require the customer to pay a non-refundable contribution (prior to construction) using the following method: a. The estimated labor cost to remove the existing facilities and return these facilities to the Company's storeroom, including appropriate loadings and overheads. Revised 3/27/2015 27 b. Minus, the estimated salvage value of the salvaged materials to be returned to the Company's storeroom (including scrap). c. Plus, the estimated cost of providing and installing the new facilities, including appropriate loadings and overheads. d. No revenue credit shall be applied. 2. Company has inadequate facilities When a customer through normal load growth requires that Company “Local” facilities (those facilities solely serving the customer such as transformers and service conductor), which are inadequate as determined by the Company, be replaced, the Company shall replace inadequate facilities with adequate facilities, which are of the same type of construction (overhead to overhead or underground to underground). The following guideline/calculation shall be used in determining if the customer will be required to pay a non-refundable contribution (prior to construction) for such work; a. The estimated labor cost to remove the existing facilities and return these facilities to the Company’s storeroom, including appropriate loadings and overheads. b. Minus, the estimated salvage value of the salvaged materials to be returned to the Company’s storeroom (including scrap). c. Plus, the estimated cost of providing and installing the new facilities, including appropriate loadings and overheads. d. Minus, two and one-half (2 1/2) times the estimated increased annual revenue to be derived from the customer. When a customer through normal load growth requires that Company “System” facilities (those facilities serving more than one customer), which are inadequate as determined by the Company, be replaced, the Revised 3/27/2015 28 Company shall replace inadequate facilities with adequate facilities, which are of the same type of construction (overhead to overhead or underground to underground). There is no charge to the customer for the modification of the inadequate “System” facilities unless the customer is; Requiring a change to the character of the “System” (ie: converting from 1 phase to 3 phase) OR Creating power quality problems on the “System” (ie: installing a large motor/welder creating primary flicker problem) If either of the two above conditions apply, then the following guidelines/calculations shall be used in determining if the customer will be required to pay a non-refundable contribution (prior to construction) for such work if; a. The estimated labor cost to remove the existing facilities and return these facilities to the Company’s storeroom, including appropriate loadings and overheads. b. Minus, the estimated salvage value of the salvaged materials to be returned to the Company’s storeroom (including scrap). c. Plus, the estimated cost of providing and installing the new facilities, including appropriate loadings and overheads. d. Minus, two and one-half (2 ½) times the estimated increased annual revenue to be derived from the customer. J. OVERHEAD TO UNDERGROUND SERVICE CONVERSION 1. Non-refundable contribution required A customer requesting a change from overhead to underground shall be charged a non-refundable contribution that is a minimum of $600 plus $10.00/foot for all conversions greater than 60 feet (measured from the Revised 3/27/2015 29 utility source to the meter base). This non-refundable contribution is required to be paid prior to construction. An additional cost for crossing sidewalks, drives or roadways will be charged at a rate of $9.00 per foot plus a $20 flat charge for conduit. Push Additional (Labor) Conduit Total (Labor & Material) Cost to Customer Walk $45.00 ($9x5’) +$20.00 = $65.00 Drive $180.00 ($9x20’) +$20.00 = $200.00 Road $360.00 ($9x40’) +$20.00 = $380.00 EXAMPLE: A customer has an underground service route length of 100 feet. The route crosses a 20’ drive. The customer pays: $600 minimum charge +400 cost for service length over 60 feet +200 to cross drive $1,200 Total Cost For Conversion 2. Exceptions to conversion charges Conversion charges will be waived for a customer who needs a conversion due to a safety issue that is the company’s responsibility. 3. Available credit For those residential facilities whose expansion has caused the current service to be incapable of serving the additional load, a $160 credit will be given. This is a credit for the cost to the company to upgrade an overhead service due to extra load. Revised 3/27/2015 30 4. Conditions to conversion a. The customer will not be allowed to dig his/her own trench due to problems and costs incurred by the Company. Customers, however, are allowed to provide trenching to install an underground system (“backbone”) in accordance with Company standards as verified by Company representative (See section titled “Subdivision Underground Residential Development URD,” subsection titled “Trenching”). 5. Meter Base Location During a conversion from overhead service to underground service, if the customer is replacing the meter base in the same location, then the company will allow it to be on the back of the home. If the customer is changing the location of the meter base (due to adding on, etc.), then the meter base should be mounted on the side or front of the house (See section titled “Responsibility of Customer”, subsection titled “Meter Base Location” for meter base location requirements). This applies for both Company owned services and customer owned services. 6. Customer owned underground service Residential customers requesting a change from overhead to underground service and want to install and own the new underground service shall be charged the appropriate following non-refundable contribution (required to be paid prior to construction): a. $400 when the Company must install a new riser (this fee includes the labor and material for installing a new riser, the labor to make connections for the customer owned service and the labor to remove the old overhead service). b. $400 when a riser already exists but the Company must install a handhole or secondary pedestal (this fee includes the labor and material for installing a handhole/pedestal, the labor to make connections for the customer owned service and the labor to remove the old overhead service). Revised 3/27/2015 31 c. $125 when a riser and handhole or secondary pedestal already exists (this fee includes the labor to make connections for the customer owned service and the labor to remove the old overhead service). The Company will install, own, operate and maintain the riser assembly (located on the Company’s pole) and the handhole/pedestal (when necessary) for all underground services installed/owned by the customer. The Company will make all connections at both the transformer and the meter base. A tag should be placed at both the transformer and the meter base indicating a customer-owned service. K. ELECTRICAL FACILITIES - Swimming Pool Conflicts If the swimming pool owner has a code violation (NEC or NESC)* the owner should be advised of the appropriate items below: 1. The pool, or pool equipment that is causing the code violation must be relocated, or modified, or the pool filled in, at the owner's expense. 2. The electrical facilities must be relocated: a. The customer shall have his electrical service entrance facilities relocated or modified. b. The Company shall relocate it's electrical facilities. Under Rule 170 IAC 4-1-28 in the Standards of Service for Electric Utilities (see Exhibit D), the customer is obligated to pay a non-refundable contribution to the Company for this additional work. This non-refundable contribution is required to be paid prior to construction. c. The customer will be given a minimum revenue credit, when facilities are inadequate to serve the load, of $125 for increased revenue from operation of the pool (based on 1/2 H.P. pump & 2.5 year revenue). However, if more load is present, the customer will be given additional credit based upon the projected power consumption for a two and one-half year period of time. Revised 3/27/2015 32 d. If the customer chooses to convert from overhead to underground service, see section titled “OH to UG Service Conversion.” 3. The pool owner should also be advised, to stop using pool cleaning equipment, diving platforms, or stop using the pool until the code violation can be corrected. The pool owner should also be advised that the Company has the right, under the Tariff filed with the IURC, to discontinue service and to refuse to serve any other member of the same household or firm at the same premises with reasonable notice when a code violation exists. * Code (NEC) - Latest Edition of the National Electrical Code Code (NESC) - Latest Edition of the National Electrical Safety Code L. GENERAL PROVISIONS The policies as set forth cannot define all situations that may be encountered. Any proposal not consistent with the above and made by a Company representative to a customer is subject to review and final approval as in accordance with the Authorized Approvals Manual. M. DEFINITIONS 1. System Improvement: The general improvement of existing facilities, as determined by the Company, which is done for purposes other than to provide an extension of facilities. This includes transmission lines, primary distribution lines, distribution transformers, secondary distribution lines and service conductors. 2. Estimated Cost to Serve: The total expenditure the Company will incur for labor, materials, freight and handling, transportation, maintenance, overhead and supervision, and removal of facilities, minus salvage (including scrap) and system improvement, for the installation of electric lines and associated facilities required to serve the customer. 3. Residential Subdivision: A parcel of land, consisting of five (5) or more contiguous plotted lots which are available for sale to the general public for construction of residential dwellings. Revised 3/27/2015 33 4. Manufactured/Mobile Home Park: A parcel of land, consisting of five (5) or more contiguous plotted lots which are available to the general public for the accommodation of such occupied structures, where the structures are generally sitting perpendicular to the road. 5. Service Facilities: Conductors and other miscellaneous equipment necessary for delivery of energy from the primary distribution system to the wiring system of the premises served. 6. Recreational Vehicles: A vehicular-type unit primarily designed as temporary living quarters for recreation, camping, or travel use which either has its own motive power or is mounted on or drawn by another vehicle. The basic types are: travel trailer, camping trailer, truck camper, and motor home. N. REVENUE ESTIMATING The Revenue Calculation Tool (RCT) should be used to calculate residential revenue credits to assure consistent calculations company-wide. The RCT calculations and all manual revenue credit calculations for individual residences, residential subdivisions, individual mobile homes, mobile home parks, multiple-family dwellings and electric farm equipment are to be based on these following formulas and factors which have been presented to the Indiana Utility Regulatory Commission. 1. All data is based upon square feet of living area. 2. Heating kwh is calculated on heat loss of: Single family residence of 22BTU per square foot Apartments & Condominiums of 20BTU per square foot Mobile homes of 40 BTU per square foot 3. Air conditioning is based upon one ton per 600 square feet. 4. Energy use is calculated by the ASHRAE formula: HL x DD x 24 Revised 3/27/2015 34 E= ---------------------V x n x Td x Cd Where: E = energy consumption HL = design heat loss (Btu) DD = number of 65oF degree days V = heating value of fuel (Btu) n = efficiency of fuel consumption (%) Td = design temperature difference (oF) Cd = correction factor for heating effect vs degree days 5. Other usage per year. a. Single Family Sq. Footage per Dwelling 900 1,000 1,200 1,400 1,600 1,800 2,000 2,200 Revised 3/27/2015 KWH Without Water Heater 7,200 7,500 8,400 9,100 9,600 9,900 10,500 11,000 KWH With Water Heater 9,450 10,000 10,800 11,200 12,000 12,600 13,000 13,200 35 b. Apartments & Condominiums Sq. Footage per Dwelling 600 700 800 900 1,000 KWH Without Water Heater 3,600 4,200 4,800 5,100 5,400 1,100 1,200 5,775 6,000 KWH With Water Heater 5,400 6,300 7,200 8,100 8,700 9,350 9,850 For dwelling units greater than 2200 square feet for single-family residence or 1200 square feet for apartments and condominiums, use either the 2200 or 1200 square foot figure shown in the table. c. Electric Heat See Exhibit E for multiplying factor (kwh per square foot) for various locations: 6. Average kwh cost per year: Average Cost Per kwh * Annual kwh Usage 0-10,000 10,001-15,000 15,001-20,000 Rate RS $0.0704 $0.0616 $0.0563 Rate Hi-Efficiency $0.0704 $0.0599 $0.0531 20,001-25,000 $0.0532 $0.0490 25,001-30,000 $0.0512 $0.0463 30,001-35,000 $0.0497 $0.0443 35,001-40,000 $0.0486 $0.0429 40,001-45,000 $0.0477 $0.0417 45,001-50,000 $0.0470 $0.0408 50,001-55,000 $0.0464 $0.0401 *Does not include taxes or fuel adjustment. Revised 3/27/2015 36 QUESTIONS AND ANSWERS: Q. How is residential revenue for a single-family residence greater than 2,200 square feet calculated? A. Use 2,200 square feet for other use, unless it can be documented that a different figure should be used. Use the actual living area, which will be heated and cooled, for calculating the heating and air conditioning revenue. O. EXHIBITS See separate document titled “Policy Guide Exhibits." Revised 3/27/2015 37