As part of its rate case filing with the Arizona Corporation Commission, Trico Electric Cooperative, Inc. (Trico) has proposed modifications to its Rules, Regulations and Line Extension Policy (RRLEP) to update provisions in order to meet operational requirements, better align them with our Members’ needs and ultimately provide better member service. Trico has proposed to reinstate a line extension allowance for all member classes with the exception of larger non-residential (GS3) and industrial (GS4) rate classes.
Trico has proposed a line extension allowance for permanent Residential member connects in an amount justified by its 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. Trico is also proposing to amend its RRLEP to update and clarify certain provisions with the intent of making them easier to read and understand and to reduce potential confusion.
Key line extension allowance provisions, which Trico has proposed are summarized below:
1. Permanent Residential Applicant: For each new permanent Residential Applicant, the allowance proposed 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).
2. Large Non-Residential and Industrial Applicant: Trico proposes no line extension allowance for its GS3 and GS4 rate classes.
3. All Other Non-Residential: Trico has proposed to provide a line extension allowance for all other rate classes (other than Residential, GS3 and GS4) 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 Residential Applicant.
4. Duly Recorded Subdivisions: Trico has proposed to revise the RRLEP for a duly recorded subdivision development to provide an allowance equal to the Cooperative’s equipment and labor cost 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.