SOUTHSIDE ELECTRIC COOPERATIVE 2000 West Virginia Avenue P. O. Box 7 Crewe, VA 23930 TERMS AND CONDITIONS For PROVIDING ELECTRIC DISTRIBUTION SERVICE As filed with the Virginia State Corporation Commission Effective: January 16, 2014
TABLE OF CONTENTS TABLE OF CONTENTS... 2 I. INTRODUCTION... 4 II. DEFINITIONS... 4 III. BECOMING A MEMBER... 5 IV. REQUIREMENTS FOR SECURING ELECTRIC DISTRIBUTION SERVICE... 7 A. APPLICATION OR AGREEMENT... 7 B. DEPOSITS... 7 C. FEES... 8 D. RATE SCHEDULE SELECTION... 8 E. RIGHT-OF-WAY... 9 F. CONNECTION PROVISIONS... 10 G. CUSTOMER WIRING... 11 H. ELECTRIC DISTRIBUTION SERVICE LIMITATIONS... 11 I. LOCATION AND MAINTENANCE OF COOPERATIVE S EQUIPMENT... 11 V. USE OF ELECTRIC DISTRIBUTION SERVICE... 12 A. COOPERATIVE AS SOLE DISTRIBUTOR... 12 B. NOTIFICATION AND APPROVAL OF UNUSUAL EQUIPMENT ADDED BY CUSTOMER... 12 C. CUSTOMER GENERATING EQUIPMENT:... 13 D. SUITABILITY OF APPARATUS TO BE ADDED... 14 E. ELECTRIC DISTRIBUTION SERVICE FOR CUSTOMER S USE ONLY... 14 F. LIABILITY OF COOPERATIVE... 14 G. INTERRUPTION OF SERVICE... 14 H. CUSTOMER S RESPONSIBILITY... 16 VI. EXTENSION OF FACILITIES... 17 A. GENERAL... 17 B. NEW SERVICE LINE EXTENSIONS... 20 C. LINE EXTENSIONS TO OUTDOOR LIGHTS... 22 D. LINE RELOCATIONS AND CONVERSIONS... 23 E. LINE CONVERSIONS TO MULTIPHASE... 23 F. EXCESS FACILITIES... 23 G. SPECIAL SERVICES OF SHORT DURATION... 23 H. PROVISIONS FOR PROVIDING SERVICE TO LOTS IN RESIDENTIAL SUBDIVISIONS AND DEVELOPMENTS... 24 VII. BILLING AND PAYMENT FOR SERVICE... 25 VIII. DISCONTINUANCE OF ELECTRIC DISTRIBUTION SERVICES... 27 A. AT ANY TIME WITHOUT NOTICE... 27 B. WITH WRITTEN NOTICE... 28 C. AT CUSTOMER S REQUEST... 28 Southside Electric Cooperative 2
IX. RECONNECTION OF ELECTRIC DISTRIBUTION SERVICE... 29 A. COMPLIANCE WITH TERMS AND CONDITIONS... 29 B. SETTLEMENT OF CHARGES AND FEES... 29 C. METER TAMPERING, CURRENT DIVERSION OR UNAUTHORIZED RECONNECTION... 29 X. ELECTRIC SERVICE CHARACTERISTICS... 30 A. QUALITY AND CONTINUITY OF SERVICE... 30 B. VOLTAGE... 30 XI. METERS AND METERING... 31 A. OWNERSHIP AND LOCATION... 31 B. PERIODIC TESTING... 31 C. TESTING SCHEDULE... 32 D. METER INACCURACY... 32 E. METER FAILURE... 33 F. TESTS REQUESTED BY CUSTOMER... 33 XII. CHARGES FOR WORK ON CUSTOMER S PREMISES... 33 XIII. CUSTOMER COMPLAINT PROCEDURE... 34 XIV. RATES... 34 APPENDIX A - SCHEDULE F FEES... 36 APPENDIX B RETAIL ACCESS GENERAL RULES AND REGULATIONS... 37 Southside Electric Cooperative 3
I. INTRODUCTION This document sets forth the terms and conditions under which electric distribution service is supplied to its Members/Customers by Southside Electric Cooperative within the designated service territory and is on file with the Virginia State Corporation Commission. Changes in these terms and conditions may be made from time to time to meet new or unforeseen conditions by the Cooperative s Board of Directors. The rules and regulations contained herein are not to be considered complete in every detail for furnishing electric distribution service, but are intended to be a general outline of the practices of the Cooperative. The Cooperative shall provide any Applicant or Member with a copy of the rate schedules and terms and conditions under which distribution service will be supplied. These Terms and Conditions create a contract for service between the Cooperative and its members. II. DEFINITIONS Applicant - means any person, firm, corporation, or public body requesting electric distribution service from the Cooperative. Commission - refers to the Virginia State Corporation Commission. Customer - refers to any Member and/or patron of the Cooperative receiving, or having received electric distribution service. Delivery Point the point where the Cooperative s equipment for supplying electric energy is connected to the Members equipment for receiving the electric energy, unless otherwise specified in a written agreement with the Member. Distribute, Distributing or Distribution of Electric Energy means the transfer of electric energy through a distribution system to a Customer Inspection Authority the authorized representative of any federal, state, local government, agency or political subdivision, having lawful authority to enforce federal, state, or local building codes. Line Extension an extension of the Cooperative s system including poles, guy wires, wires, transformers, protective devices, sectionalizing devices, cables, conduits, cabinets and other related equipment or appurtenances. Member - means any person, firm, corporation, or public body who has complied with the terms and conditions of service, the rules and regulations of the Southside Electric Cooperative 4
Cooperative, and whose application for membership has been accepted by the Cooperative and is being supplied electric distribution service by the Cooperative. Southside Electric Cooperative - a Cooperative corporation operating under the Utility Consumer Services Cooperative Act. Wholesale Power Cost Adjustment when the Cooperative s cost of power at wholesale is increased or decreased by (1) a change in the price of power allowed to go into effect, (2) a change in the charge under a Fuel Cost Adjustment Clause or changes in energy allocation included in a rate or contract filed with a regulatory commission, the rates of the Cooperative shall be increased or decreased. III. BECOMING A MEMBER A. Membership Requirements: An Applicant who contracts by ownership or lease of the property to be served may become a Member of the Cooperative by meeting the following requirements: 1. Must be at least 18 years of age and qualified to enter into a legally binding contract. 2. Must submit a complete Membership Application that provides verifiable information and identification of each electric service connection, on forms provided by the Cooperative. 3. Must pay a membership fee and security deposit that may be required and a non-refundable service charge. 4. Must agree to purchase electric distribution service from the Cooperative according to the Terms and Conditions and to comply with the Certificate of Incorporation and Bylaws as adopted and amended from time to time by the Board of Directors. 5. Must execute all applicable agreements and pay all charges and any outstanding debts or obligations due the Cooperative from any previous service or agreements. B. Membership Classifications Membership in the Cooperative may be held in one of the following classifications: Southside Electric Cooperative 5
1. Individual- Any Applicant or Legal Entity may be assigned an individual membership by satisfying the membership requirements and completing and submitting to the Cooperative all applicable documents. 2. Joint A person and spouse/partner may apply for a joint membership. Both must satisfy the membership requirements and complete and submit to the Cooperative all applicable documents. a. An individual membership may be converted to a joint membership upon the written request of the holder of the original individual membership and upon the satisfaction of all other membership requirements by the person being added to the membership. b. A joint membership may be converted to an individual membership upon the written request of both holders of the original joint membership, and payment in full of all outstanding debts owed to the Cooperative under the original joint membership. c. Upon death of a spouse/partner who is a party to a joint membership, such membership shall continue by the survivor, provided, however, that the estate of the deceased shall not be released from any debts due the Cooperative. C. Termination of Membership Termination of membership may occur under the following conditions: 1. When the Member leaves the Cooperative s service area or no longer satisfies the membership requirements. 2. Death of the Member. 3. For non-payment of debts and obligations due to the Cooperative or for failure to comply with these Terms and Conditions, the Cooperative Bylaws or terms of the Cooperative Application for Membership. 4. Conditions as stated in Section VIII Discontinuance of Electric Distribution Service. Payments for all debts and obligations due to the Cooperative by the Member shall come due upon termination of membership. Termination of membership shall not release the Member or the estate of the Member from any debts or obligations due the Cooperative. Southside Electric Cooperative 6
IV. REQUIREMENTS FOR SECURING ELECTRIC DISTRIBUTION SERVICE A. Application or Agreement No person shall receive electric distribution service until they have signed the Cooperative s approved form Application for Membership and/or its approved form Agreement for the Purchase of Electric Distribution Service, and has paid a membership fee. Such payment shall make the Member eligible for electric distribution service on the premises referred to in the application. Any person or entity owing a debt to the Cooperative shall not be allowed to join in the Cooperative or receive service from the Cooperative until the debt has been paid in full or arrangements satisfactory to the Cooperative have been made for the satisfaction of the outstanding debt. Applicants must contact the Cooperative before service will be made available. Under certain conditions the Cooperative may require the Applicant to sign a contract(s) pertaining to the Applicants obligation to the Cooperative for contribution in aid to construction and/or a monthly minimum higher than that specified under the applicable rate schedule. Whether or not a written agreement covering the supply of electricity is executed, the Applicant, by accepting the electricity, agrees to be bound by the applicable rates, terms, and conditions of service. The Cooperative reserves the right to require the Applicant to establish that the Applicant is the owner or bona fide lessee of the premises and to require owners or bona fide lessees to execute the Application for Membership and/or the Agreement for the Purchase of Electric Distribution Service. B. Deposits 1. The Cooperative may require the Applicant or Customer to deposit with it initially and from time to time, as a guarantee of payment for electric distribution service used, such amount as, in the Cooperative s judgment, will secure it from loss. The amount of this deposit shall not be greater than an estimated billing for the two highest consecutive months service. If actual historical usage is not available for such estimates, the Cooperative reserves the right to apply the estimated billing based on comparisons to other like-sized structures served by the Cooperative and/or other reasonable means. The Cooperative is not bound to supply electricity until these conditions are fulfilled and it may disconnect within ten (10) days of written notice to the Customer if the guarantee or increased guarantee is not given Southside Electric Cooperative 7
C. Fees when required. 2. Whenever the required deposit from any Residential Customer exceeds the sum of $100, the Residential Customer shall be permitted to pay the required deposit in three consecutive equal monthly installments provided, however, that the Cooperative shall have the discretion to allow payment of any deposit over a longer period of time to avoid undue hardship. 3. The Cooperative will pay interest on deposits held longer than ninety (90) days at a rate, which shall be determined by the Virginia State Corporation Commission annually. 4. The Customer Member shall receive payment of all annually (12 months) accrued interest by having the interest credited to his account. 5. The Cooperative will return the deposit after the Customer has established twelve consecutive months of a satisfactory credit record after the deposit requirement is met. Satisfactory credit shall be defined as the Member having no delinquent notices and no returned payments for the previous 12 consecutive month period. The Cooperative shall credit the deposit refund to the Customer s account or, upon the Member s request, make direct payment to the Member. 6. All remaining deposits plus earned interest will be returned to the Customer at the termination of electric distribution service, after all indebtedness to the Cooperative has been paid. The Cooperative shall have a reasonable time to disconnect service and to ascertain that all obligations of the Customer have been fully performed before being required to return any deposit. 7. Additional deposits may be required resulting from Customer damage to Cooperative equipment as outlined in Section IX.C (Meter Tampering, Current Diversion or Unauthorized Reconnection). The Applicant shall pay all other required fee(s), deposit(s), and charge(s) as per Schedule F-Fees. D. Rate Schedule Selection When a Customer s load meets the conditions of two or more schedules, the Customer shall be responsible for the choice of the schedule. The Cooperative will assist in the selection at the Customer s request. However, except as provided by law, the responsibility of selection shall Southside Electric Cooperative 8
rest with the Customer. Except as required by law, no refund will be made by the Cooperative to any Customer for the difference in the rate under the schedule applied and that which have been charged had a different schedule been applied. E. Right-of-Way 1. By executing the Application for Membership the Applicant grants and/or acknowledges the right of the Cooperative, its agents and assigns to construct, operate, maintain, repair, improve and relocate Cooperative facilities on the Applicant s property, and to cut, trim and control the growth of trees and vegetation that, in the opinion of the Cooperative, threaten the safe and reliable operation of the Cooperative s facilities. By executing the Application for Membership the Applicant also grants and/or acknowledges the right of ingress/egress by the Cooperative, its agents and assigns across the Applicant s property to access Cooperative facilities located on or off of the Applicant s property. 2. In a form acceptable to the Cooperative, the Applicant shall provide the Cooperative with valid written right-of-way easement(s) for Cooperative facilities to be installed on property owned by the Applicant, and for Cooperative facilities to be installed on property not owned by the Applicant but necessary to extend service to the Applicant. If landowners require compensation for granting easements necessary to provide electric distribution service to the Applicant, the Applicant shall be responsible for satisfying such demands. 3. Prior to construction of Cooperative facilities, all required right-of-way easements and permits shall be fully executed and in the possession of the Cooperative and the Applicant shall pay the Cooperative for all costs associated with easement preparation, approval, and recordation at the respective county clerk s office. 4. Subdivision Developers shall grant the Cooperative a right of entry and a free and continuous easement acceptable to the Cooperative along all streets and lot boundaries within the property of the development, and the right to construct, operate, maintain, repair, upgrade, and relocate an electrical distribution and/or transmission system as proposed by the Cooperative. 5. The Cooperative shall have the right to keep rights-of-way clear of trees, shrubbery, undergrowth and other obstructions, and shall have the right to cut or trim trees that, in the opinion of the Cooperative, endanger the safe and reliable operation of the Cooperative s facilities. Southside Electric Cooperative 9
Hazard trees shall include dead, diseased, damaged, leaning or other trees that have grown in such a manner as to create a hazard to the Cooperative s facilities and that may strike the Cooperative s lines should they fall. Such hazard trees may be located outside the boundaries of the Cooperative s rights-of-ways and may be removed at any time at the discretion of the Cooperative. 6. The Cooperative, its contractors and assigns shall not be liable for any subterranean damage to trees, shrubbery, or undergrowth located outside the provided right-of-way on or off of the Applicant s property that may result from work done by the Cooperative within the provided right-of-way during the installation of its facilities to serve the Applicant. F. Connection Provisions The Applicant shall make proper provisions for the connection of electric distribution service. 1. One Service Connection - the Cooperative will supply electric service to each premise through one service connection for each class of service. Exceptions may be granted where permitted by the applicable code and installation of more than one service connection is justified. 2. The Cooperative s overhead and underground service conductors terminate at the point of attachment to the Customer s delivery point as designed by the Cooperative unless otherwise specified in a written agreement with the Member. The point of attachment on a residential overhead service is the Customer s weather head. The point of attachment on a residential underground service is the meter base. The Cooperative s responsibility for the installation and maintenance of service facilities terminates at the point of attachment. The Customer is responsible for all facilities from the point of attachment into the residence and beyond. 3. When service is provided from the Cooperative s overhead service conductors, it is the responsibility of the Applicant to furnish and install service entrance conductors, as required, between the Cooperative s point of attachment to the structure and the meter base. It is the Applicant s responsibility to provide the Cooperative a structurally sound point of attachment capable of withstanding the mechanical load resulting from the attachment of service conductors thereto, and to locate the point of attachment is such a manner to maintain clearances as required by applicable codes. 4. Prior to connecting the Applicant s service to the Cooperative s system the Cooperative must receive the approval to do so by the applicable Southside Electric Cooperative 10
Inspection Authority, and the service must conform to the requirements of the National Electric Code, the National Electric Safety Code, the standards of the Cooperative and any other applicable standards. 5. It shall not be permissible for more than one (1) residence to receive service through one meter. Any Customer found to be receiving service through another service s meter shall be notified that separate metering equipment must be installed and approved by the proper Inspection Authority within thirty (30) days. If the situation is not corrected within thirty (30) days the Cooperative reserves the right to discontinue service until such time the situation is corrected. G. Customer Wiring The wiring must conform to the National Electrical Code and the specifications of the Cooperative. Before connection of service, if covered by the local building code, the Inspection Authority must approve the Customer s installation. In no event shall the Cooperative be under any obligation to inspect wiring or appliances of the Applicant, but where the Cooperative has reason to believe wiring or appliances of the Applicant do not comply with recognized requirements, the Cooperative may refuse to supply electricity to the Applicant. The Customer shall be responsible for notifying the Cooperative of any plans for adding appliances, equipment, and/or motors, which might overload or impair the electrical service or the facilities of the Cooperative. It is recommended that in the installation of a wiring system, the Applicant give consideration to all foreseeable future uses and installs service entrance conductors and equipment of such capacity as to carry the maximum anticipated future loads. H. Electric Distribution Service Limitations To eliminate the possibility of error or loss, the Applicant or Customer, before purchasing motors or other equipment, or undertaking to install wiring, shall secure from the Cooperative all necessary data relating to the characteristics of the electricity which will be supplied. The Cooperative reserves the right to set limitations on current inrush characteristics, demand, power factor, or any other characteristic of motors, wiring, or any other equipment in order to protect the quality, reliability, and/or safety of its system, and/or the service to other Customers. I. Location and Maintenance of Cooperative s Equipment The Cooperative shall have the right to erect its facilities on the property of the Applicant, which are necessary in supplying electricity to the Applicant. Applicant shall not lock or obstruct such access to Cooperative facilities or impede the Cooperative s access to ingress/egress to maintain and repair Southside Electric Cooperative 11
such equipment. The Applicant shall provide suitable space for the installation of the necessary metering apparatus and shall not lock or obstruct access to such metering apparatus and shall not deny such access at any time to such metering apparatus. The Applicant shall be responsible for all costs associated with any relocation of the Cooperative s facilities or metering apparatus due to the Applicant s denial of access or any future construction on behalf of the Applicant that limits such access. V. USE OF ELECTRIC DISTRIBUTION SERVICE A. Cooperative as Sole Distributor The Applicant and/or Customer agrees that no electricity, other than that distributed by the Cooperative, shall be distributed over the Cooperative s distribution facilities to operate the Applicant s and/or Customer s equipment without previous written notice to and consent of the Cooperative. However, on and after the date of Customer Choice for retail Customers in the Commonwealth and to the extent that the Cooperative s Applicants and/or Customers are allowed to select a competitive service provider and/or aggregator of electricity, the contract made between the Cooperative and the competitive service provider shall satisfy this requirement, and the Applicant and/or Customer need not provide a separate written notice to and obtain consent from the Cooperative to receive competitive services from a competitive service provider and/or aggregator. B. Notification and Approval of Unusual Equipment Added by Customer The Customer shall notify and obtain the consent of the Cooperative before the addition of any unusual equipment or appliances. Such unusual equipment includes, but is not limited to: single phase motors over 10 horsepower, three phase motors, generators, automated process equipment, and welders. The Cooperative reserves the right to charge for any in-depth studies required in order to determine the effect of the apparatus on the Cooperative s system. The Cooperative reserves the right to charge the Customer a contribution in aid to construction for the cost of additional facilities installed by the Cooperative in attempt to mitigate power quality issues created by the Customer s equipment. The Cooperative reserves the right to refuse to supply electric distribution service to any piece of equipment whose operation is considered to be a safety hazard or detrimental to the Cooperative s electrical system or any of its Customers. Furthermore, the Cooperative reserves the right to discontinue electric distribution service to any Customer operating such equipment until such time as the Customer conforms to the Cooperative s regulations. Southside Electric Cooperative 12
C. Customer Generating Equipment: 1. Interconnection a. A switch, or other approved disconnecting means, must be used to prevent possible injury. Such disconnecting means installation is subject to the inspection and approval of the Cooperative and the local Inspection Authority b. Detailed plans showing the equipment to be used, the load transfer arrangement and the electrical connections should be submitted to the Cooperative for approval c. Where auxiliary service is provided by the Cooperative, or where an emergency source of supply is provided by the Customer, parallel operation of the Customer s generating equipment with the Cooperative s system is not allowed except where specifically approved by the Cooperative. 2. Distributed Generation, Co-Generation and Small Power Production Facilities: a. Any distributed generation facility or qualifying co-generation or small power production facility as designated by the Federal Energy Regulatory Commission (FERC) shall be treated in accordance with applicable legal and regulatory standards. b. Small Generator Interconnections (SGI) other than Net Energy Metering and generators interconnected under the jurisdiction of FERC shall be treated in accordance with the Commission s rules, Regulations Governing Interconnection of Small Electrical Generators (20VAC5-314-10 et seq.) and the Cooperative s Small Generator Interconnection Rider as filed with the Virginia State Corporation Commission and which may be updated from time to time to reflect changes in applicable Virginia law. 3. Net Metering Customer Any qualifying net metering Customer as designated by Virginia Code 56-594 shall be dealt with in accordance with the Cooperative s Net Energy Metering Rider as filed with the Virginia State Corporation Commission and which may be updated from time to time to reflect changes in applicable Virginia law. Southside Electric Cooperative 13
4. Power From Generators Retail Customers (including net metered Customers) are not permitted to use the Cooperative s facilities to sell any portion of their on-site, self-generation into the electricity market without first having executed a contract with both the Cooperative and the Transmission Provider. D. Suitability of Apparatus to be Added The Cooperative reserves the right, but shall not have the duty, to determine the suitability of any apparatus or appliance to be connected to its lines, and to determine whether the operation of such shall be detrimental to its general supply of electricity. The Cooperative further reserves the right to refuse to supply or to discontinue the supply of electricity until such time as the Customer shall conform to the Cooperative s regulations. E. Electric Distribution Service for Customer s Use Only The Cooperative will furnish electric distribution service to the Customer for use only for the premises occupied through ownership or lease by the Customer. This service shall not be re-metered, sub-metered, or otherwise controlled by the Customer for resale or assignment to others, except as provided by the Code of Virginia. F. Liability of Cooperative The electricity supplied under any agreement is distributed by the Cooperative and purchased by the Customer upon the express condition that, after it passes the metering equipment of the Cooperative, or other point of delivery, it becomes the property of the Customer to be used only as herein provided. The Cooperative shall not, in any event, be liable for loss or damage to any person or property whatsoever, resulting directly or indirectly from the use, misuse, or presence of the said electricity on the Customer s premises or elsewhere, after it passes the Cooperative s metering equipment, or other point of delivery; or for any loss or damage resulting from the presence, character or condition of the wires or appliances of the Customer. G. Interruption of Service The Cooperative will endeavor to maintain, as nearly as practical, full continuity of service, but it cannot guarantee uninterrupted service. It is the Customer s responsibility to provide protection for his/her electric motors, apparatus, wiring and other equipment from the effects of Southside Electric Cooperative 14
unavoidable interruption or abnormal service supply conditions, such as low voltage, high voltage, single-phasing, lightning damage or frequency change. The Cooperative will not be held responsible for losses experienced by the Customer due to his/her failure to provide such protection. The Cooperative recommends that the Customer plan for and utilize backup generation for interruptions beyond the control of the Cooperative. Without liability to the Cooperative, service may be interrupted or become abnormal because of any of the following causes: 1. Storms, accidents, equipment failure and/or acts of God. 2. Failure of power supplier, shortage in power supplies or capacity necessitating reduction in service or the implementation of rotating blackouts. When rotating blackouts are required, the Cooperative may, without notice and without incurring liability, implement them on the basis of what is, in the Cooperative s opinion, reasonably necessary to minimize adverse impact on the public health and safety and to facilitate restoration of normal service to all Customers at the earliest time practical. 3. An adverse condition or disturbance on the system of the Cooperative, or on any other system directly or indirectly interconnected with it which requires automatic or manual interruption of the supply of electricity to some Customers or areas in order to limit the extent or duration of the adverse condition or disturbance, or to prevent damage to generating or transmission facilities, or to expedite restoration of service, the Cooperative may, without incurring liability, take such action as appears reasonably necessary. 4. By order of governmental authorities. 5. To make repairs, to limit or reduce the duration of interruptions, or to prevent damage to the Customer s or the Cooperative s equipment. 6. Civil disorder, strikes, or other labor trouble, riot, insurrection, war, fire or any other cause where the Cooperative believes it is necessary to de-energize part of its facilities for the protection of the public, its employees, or its electric system. Upon correction of conditions, which caused the interruption, the Cooperative will be diligent in re-energizing its facilities when it is safe to do so. Upon any interruption of service, or any abnormal service, the Customer should notify the Cooperative as soon as possible. The Cooperative, in most cases, has no other way of knowing of interrupted Southside Electric Cooperative 15
or abnormal service. H. Customer s Responsibility 1. The Customer shall be responsible for providing the Cooperative and/or its agent access to the Cooperative property installed on the Customer s premises at all times. 2. The Customer shall be responsible at all times for the safekeeping of all Cooperative property installed on the Customer s premises and, to that end, shall give no one, except authorized Cooperative employees or its agents, access to such property. 3. The Customer may be liable for the cost of repairs or damage done to the Cooperative s property on the Customer s premises resulting from the negligence of, or misuse by others than Cooperative employees and/or its agents. 4. The Customer shall be responsible for the maintenance and repair of the Customer s wiring and equipment. Additionally, it is the Customer s responsibility to provide adequate protection for their motors or other equipment as defined in the National Electrical Code. Should the Customer report trouble with the supply of electricity, the Cooperative will endeavor to respond with reasonable dispatch to such calls with the purpose of correcting only such trouble as may be in the Cooperative s equipment supplying said Customer. If after investigation, it is determined that the Cooperative s equipment is not at fault, a service charge (Schedule F-Fees) will be made. 5. The Cooperative retains responsibility only with respect to the actions of its employees and/or its agents in connection with property owned by the Cooperative. 6. The Customer shall indemnify, save harmless, and defend the Cooperative against all claims, demands, costs or expenses, for loss, damage, or injury to persons or property in any manner directly or indirectly arising from or connected with, or growing out of the use of electricity by the Customer at or on his side of the point of attachment. 7. The Customer shall provide and maintain unobstructed access to all Cooperative property installed on the Customer s property at all times. The Customer shall not enclose and/or build (or plant vegetation) around or adjacent to meters, poles, pole supports, underground enclosures or any other Cooperative equipment in such a manner as to restrict the Cooperative s access to maintain its system. The Customer will provide the Cooperative access to any/all locked gates Southside Electric Cooperative 16
and security fences which may restrict access to Cooperative equipment. The Cooperative will provide a pad-lock that is keyed to allow access to Cooperative employees only, free of charge to the Customer, to be used in conjunction with the Customer s gate or security fence. Other locks for Cooperative access will not be allowed so as to limit operational issues associated with maintaining individual keys, combinations or access codes. Access shall be provided to the Cooperative on a 24 hour per day basis. 8. The Customer shall not build any permanent structures within the Cooperative s right-of-way without securing approval from the Cooperative. 9. The Customer shall not plant any vegetation within or alongside the Cooperative s right-of-way that may impede access to Cooperative facilities or that may grow into or become a future hazard for Cooperative facilities. Any such vegetation may be removed by the Cooperative at the Customer s expense. VI. EXTENSION OF FACILITIES The policy of the Cooperative is to furnish adequate distribution electric service to all qualified Applicants within the Cooperative s service area. The service shall be furnished at the Cooperative s published rates as approved by the State Corporation Commission of Virginia and in accordance with the following line extension policy. A. General The terms and conditions set forth under this section VI, A applies to sections VI, B through H. 1. The standard construction practices of the Cooperative shall be to design and construct line extensions in a manner that is in the best interest of the Cooperative while meeting the service requirements of the Applicant. Such determination will be at the sole discretion of the Cooperative. In making such determination, the Cooperative will consider, among other factors, the most economical and cost effective installation, operation, and maintenance of the distribution system, and the probability that the facilities will be available to serve other Customers. 2. Should the Applicant request and the Cooperative agree to a final design other than that selected by the Cooperative, the Applicant shall Southside Electric Cooperative 17
pay any incremental cost difference between the design selected by the Applicant and the design originally recommended by the Cooperative, in addition to any other fees, charges and associated line extension costs as set forth in these Terms and Conditions. The incremental cost difference shall be calculated by comparing the Cooperative s preferred construction method and the Customer s preferred construction method. 3. Unless otherwise stated, all costs or capital investments shall be determined using standard unit costs. The standard unit cost of construction and retirement units will be the average cost of the unit based on the Cooperative s most recently calculated twelve-month period and will include materials, labor and overheads. 4. The Applicant shall meet a Cooperative Representative to perform an on-site preliminary design and locate all water lines, wells, septic systems, sewer, gas, electric, and other private underground facilities on the property that may be in conflict with the construction plan. The Applicant shall expose all private underground facilities along the line extension route. Should the Applicant fail to expose private underground facilities prior to the Cooperative s construction crew arriving at the site, and the Cooperative elects to proceed with the line extension installation, the Applicant shall pay as a contribution in aid to construction the actual labor, material and overhead cost of crossing the private facilities. The Cooperative reserves the right to refuse to install service until private underground facilities are exposed to the Cooperative s satisfaction. In no instance shall the Cooperative and/or its contractors be responsible for any damage to private facilities that have not been exposed prior to construction. 5. In a format suitable to the Cooperative, the Applicant shall provide the Cooperative with a surveyed plat or other drawing, sketch or diagram which clearly shows the boundaries of the Applicant s property. The applicant shall also provide any available plats, drawings, sketches or diagrams of any other properties that the line extension, being built at the Applicant s request, will cross. Such additional instruments would be those available as part of the public record in the locality where construction will take place. These plats and/or drawings are necessary for the Cooperative to prepare recordable right-of-way easement document(s). 6. It shall be the Applicant's responsibility to secure and/or otherwise provide, at no cost to the Cooperative, right-of-way easements and permits acceptable to the Cooperative as outlined in section IV.E. 7. The Applicant shall be responsible for clearing the rights-of-way and/or Southside Electric Cooperative 18
trimming yard trees to the satisfaction of the Cooperative where the proposed facilities extend through wooded areas or are in conflict with yard trees. Upon request of the Applicant, and at the Cooperative s discretion, the Cooperative may elect to clear the Applicant s right-ofway at the Applicant s expense. When a line extension to the Applicant s service requires right-of-way clearing on property not owned by the Applicant the Cooperative shall clear this right-of-way at the Applicant s expense. 8. The Applicant shall be responsible for grading the right-of-way within (+/-) 6 inches (6 ) of final grade prior to construction. If there are grade changes after the Cooperative s facilities have been installed, and which, in the sole discretion of the Cooperative, result in an unsafe condition, the Applicant shall bear the entire cost of removal and reinstallation of these facilities. 9. For underground line extensions, the Applicant shall provide access conduits underneath driveways, sidewalks, patios, porches, decks, etc. to the satisfaction of the Cooperative. At the Cooperative s option, an entire conduit system, at the Applicant s expense, may be required. 10. The Cooperative shall not be required to construct any line extensions until the Applicant to be supplied from such line extension has signed an application and/or all contracts and agreements and fulfilled such other conditions for the connection of electricity as may be required by the Cooperative, and until the Applicant s service has been approved by the applicable Inspection Authority. 11. The Cooperative will treat any service as Non-Standard where the following apply: a. Where service is to a location that is not a permanent, bona fide residential establishment and/or which does not have average annual usage comparable to the Cooperative s average usage for the rate on which the new location would be billed. b. Where service is to a location that is not a permanent, bona fide commercial or industrial establishment and/or which does not have average annual usage comparable to the Cooperative s average usage for the rate on which the new location would be billed. c. Where service is requested to a location which is not owned by the Applicant or which, in the judgment of the Cooperative, is not likely to be occupied by a successor should it be abandoned by the Applicant. Southside Electric Cooperative 19
12. These general rules and regulations shall not be construed as prohibiting the Cooperative from making electric line extensions of greater length or higher costs provided that there is no discrimination between Customers using and/or receiving electric distribution service under the same classification. B. New Service Line Extensions 1. Line extensions for single and three-phase service to all locations served by the Cooperative s Residential Rate (excludes non-standard services) a. The Cooperative will invest capital up to $3,000 for a line extension to a permanent residence. A permanent residence is defined as a single family residential dwelling occupied at least nine (9) months per year and containing a kitchen, a bedroom, a bathroom, heating and for which the local government s building official has issued a residential building permit. b. A contribution in aid to construction ( CIAC ) will be charged to the Residential Customer for all line extension costs in excess of $3,000. The Applicant shall pay the CIAC in full or shall enter into a contractual agreement to pay the CIAC over a 60-month period in equal monthly payments. The Applicant may pay off any outstanding CIAC at any time during the 60-month period. c. The Cooperative may require three-phase line extensions for motors larger than 10 horsepower and/or loads greater than 25 kw. 2. Line extensions for single and multi phase service to commercial loads (excluding those served by the Cooperative s Residential or Industrial Rates and non-standard services): a. The Cooperative will invest capital up to $3,600 for single and multiphase line extensions to commercial services. A commercial service is defined as a non-residential structure or building of at least two thousand (2000) square feet, for which the local government s building official has issued a commercial building permit. b. A contribution in aid to construction ( CIAC ) will be charged to the Commercial Customer for all line extension costs in excess of $3,600. The Applicant shall pay the CIAC in full or shall enter into a contractual agreement to pay the CIAC over a 60-month period in equal monthly payments. The Applicant may pay off any outstanding CIAC at any time during the 60-month period. Southside Electric Cooperative 20
c. The Applicant shall complete and provide a copy of the Cooperative s load letter detailing the service ampacity, service voltage, connected demand, diversified demand and physical equipment characteristics of the new service. The Cooperative will size its facilities in accordance with the information provided on this form. d. The Applicant shall enter into a contractual agreement with the Cooperative obligating the Applicant to keep the service connected for a five (5) year period. If the Customer, for any reason, has the service disconnected, or if the service is disconnected for nonpayment, then the Customer whom entered into the contract with the Cooperative shall be billed for the entire cost of the original line extension less the original CIAC. 3. Line extensions for multi phase service to Industrial Loads (Loads served by the Cooperative s Industrial Rates) a. The Cooperative will invest capital to serve industrial services up to 2.5 times the estimated annual net revenue that the Cooperative anticipates receiving from the industrial service. An industrial service is defined as a service that qualifies for one of the Cooperative s industrial rate schedules as filed with the State Corporation Commission. Estimated annual net revenue is defined as the annual gross revenue that the Cooperative expects to receive from the Applicant less the purchase power cost associated with serving the Applicant. b. The Applicant/Developer shall pay the Cooperative a contribution in aid to construction ( CIAC ) for the total capital investment in excess of 2.5 times the estimated annual net revenue. The Applicant shall pay the CIAC in full prior to construction of any Cooperative facilities. The total capital investment shall include: i. All costs associated with extending the Cooperative s system (transmission, sub-transmission, distribution and substations) to the delivery point. The system design chosen will be based on the projected load of the service, the reliability goals of the Cooperative, and is at the sole discretion of the Cooperative. ii. The cost of any upgrades to the Cooperative s existing system (transmission, sub-transmission, distribution and substations) necessary to create the system capacity and/or the reliability required by the Cooperative to serve the load. Southside Electric Cooperative 21
c. The Applicant shall complete and provide a copy of the Cooperative s load letter detailing the service ampacity, service voltage, connected demand, diversified demand and physical equipment characteristics of the new service. The Cooperative will size its facilities in accordance with the information provided on this form. d. The Applicant shall enter into a contractual agreement with the Cooperative obligating the Applicant to keep the service connected for a five (5) year period. If the Customer, for any reason, has the service disconnected, or if the service is disconnected for nonpayment, then the Customer whom entered into the contract with the Cooperative shall be billed for the entire cost of the original line extension less the original CIAC. e. If the actual net revenue collected during the first 30-month billing period is greater than 2.5 times the estimated annual revenue calculated before construction, the amount by which the actual annual net revenue collected during the 30-month period exceeds 2.5 times the estimated annual net revenue will be refunded to the Customer, up to but not exceeding the Customer s original CIAC. f. If the actual net revenue collected during the first 30-month billing period is less than 2.5 times the estimated annual revenue calculated before construction, the amount by which the actual annual net revenue collected during the 30-month period is less than 2.5 times the estimated annual net revenue will be collected by the Cooperative from the Customer. 4. Line extensions for all other non-standard services including but not limited to shops, garages, stables, docks, well pumps and farm related services a. The Cooperative will invest capital up to $1,000. b. Contribution in Aid to Construction ( CIAC ) will be charged to the Applicant for all line extension costs in excess of $1,000. The Applicant shall pay the CIAC in full or shall enter into a contractual agreement to pay the CIAC over a 60-month period in equal monthly payments. The Applicant may pay off any outstanding CIAC at any time during the 60-month period. C. Line extensions to Outdoor Lights Any facilities necessary to extend unmetered service to a Cooperative owned outdoor light in excess of the security light fixture and bulb shall be Southside Electric Cooperative 22
paid for by the Customer. The Cooperative will not install or operate any new ornamental, decorative or self-supported lighting fixtures or installations. The Cooperative will only install and maintain outdoor area lighting on new or existing Cooperative poles. The Cooperative will construct line extensions to metered services for all other Customer installed ornamental, decorative or self-supported lighting fixtures under the provisions of Section VI, B.4. D. Line Relocations and Conversions 1. If a line is to be relocated at a Customer s request, and the Cooperative agrees to the relocation, the Customer shall pay the entire cost to relocate the line. 2. If a Customer requests an existing overhead primary line be converted to underground, and the Cooperative agrees to the conversion, the Customer shall pay the entire cost to convert the line. 3. If a Customer requests that an existing adequate overhead service be converted to underground, and the Cooperative agrees to the conversion, the Customer shall pay the entire cost to convert the service. 4. If a Customer requests that an overhead service, which is inadequate, be converted to underground, and the Cooperative agrees to the conversion, the Customer shall pay the incremental cost differential between underground and overhead facilities. E. Line Conversions to Multiphase: Any request for multiphase service where existing single phase is adequate for the Cooperative s needs and the costs for such upgrades exceed the allowances detailed in section VI, B, the Applicant shall pay the entire cost to convert the line to multiphase. F. Excess Facilities The Cooperative will provide facilities in excess of normal service facilities (one source, one transformer installation, and one meter) provided that: 1. The Applicant or Customer pays the entire cost to install the excess facilities plus a monthly maintenance charge of one percent (1.0%) of the original installation cost. G. Special Services of Short Duration Southside Electric Cooperative 23
For any connection that will require service for only a short duration of time, including temporary services for building construction, the Customer will be required to pay the entire cost, in advance, to construct and retire the service. H. Provisions for Providing Service to Lots in Residential Subdivisions and Developments Subdivisions and developments shall be treated under the terms previously set forth under Section VI, A. In addition: 1. The Applicant/Developer shall provide the Cooperative with a plat of the subdivision or development, approved by the required county official(s), showing the date of approval and the book and page recorded. 2. The Applicant/Developer shall provide the Cooperative a site plan stamped final and sealed by a Professional Engineer or Professional Land Surveyor showing property lines, setback restrictions, proposed house sites, public/private roads, water, sewer, and other supporting underground facilities. 3. The Applicant/Developer shall be responsible for the cost of providing access conduits underneath roads and drainage culverts and other areas necessary for the installation of the Cooperative s facilities. At the discretion of the Cooperative, the Applicant/Developer may be allowed to install such conduits in accordance with Cooperative specifications. 4. Prior to construction the Applicant/Developer shall pay the Cooperative the total estimated capital investment required to serve the subdivision or development. The total capital investment shall include: a. The cost of all facilities to be installed in the subdivision. b. All costs associated with extending the Cooperative s system (transmission, sub-transmission, distribution and substations) to the subdivision or development. The system design chosen to serve the subdivision or development will be based on the projected load of the subdivision or development, the reliability goals of the Cooperative, and is at the sole discretion of the Cooperative. c. The cost of any upgrades to the Cooperative s existing system (transmission, sub-transmission, distribution and substations) necessary to create the system capacity and/or the reliability Southside Electric Cooperative 24