At its Open Meeting held February 8, 2017, the Arizona Corporation Commission (ACC) approved modifications to Trico’s Rules, Regulations and Line Extension Policy (RRLEP) in Decision No. 75976.
Effective as of March 1, 2017, Trico will reinstate a line extension allowance for all customer classes with the exception of larger commercial (GS3) and industrial (GS4) rate classes. All new or active applications for electrical line extensions, including service upgrades and conversions, received or under process by Trico on or after March 1, 2017, will be subject to the revised RRLEP.
The new line extension allowance for permanent Residential member connects reflects an amount justified by Trico’s cost of service, which will not create undue pressure on rates and will recognize the investment in new system facilities needed to support new Members. Trico believes that the proposed line extension allowance provides a fair, equitable and balanced approach, which will benefit both new and existing Members. The new Trico RRLEP also updates and clarifies certain provisions with the intent of making them easier to read and understand and to reduce potential confusion.
The key line extension allowance provisions in the new RRLEP are summarized below:
- Permanent Residential Applicant: For each new permanent Residential Applicant, the allowance is up to $1,500 per line extension for each new permanent residence, plus the cost of special equipment (such as a transformer and/or meter).
- Large Commercial and Industrial Applicant: No line extension allowance for Trico’s GS3 and GS4 rate classes.
- All Other Non-Residential: The line extension allowance for all other rate classes (other than Residential, GS3 and GS4) will be based on a formula utilizing the Trico cost of service data applied to each individual non-Residential Applicant similar to the calculation used to develop the allowance for the Residential Applicant.
- Duly Recorded Subdivisions: For a duly recorded subdivision development, Trico will provide an allowance equal to Trico’s equipment and labor costs to install the transformers within the subdivision. Click here to view an illustrative example graphic comparing the current and proposed line extension costs related to subdivisions.