Electric Line Extension Policy Review

Asset Management

TXU Electric & GasTXU Electric & Gas

Electric Line Extension Policy Review

November 8, 2001

TXU Electric & GasAsset Management

TXU Electric & GasPresentation Summary

• Line Extension Assumptions

• Administrative Guidelines

• Implementation

• Questions


TXU Electric & GasLine Extension Assumptions

• Least cost design

• Overhead service on wood poles

• Cleared Right-of-Way

• Permanent facilities


TXU Electric & GasTypes of Extensions - Small Loads

• Under 20 kW single phase - single customer

• Overhead• Underground

• Under 20 kW single phase - multiple customers

• Overhead• Underground

• Methodology for calculating extension allowance is based on footage or equivalent cost.


TXU Electric & GasTypes of Extensions - All Other

• Larger and Non-Standard Loads:

• Over 20 kW and all three phase• Larger Commercial/Industrial• Multi-Family

• Specific Cost Study• Added load to existing facilities• Methodology for calculating extension allowance is based on

revenue justification.

• Temporary Facilities

• Removal and Relocation


TXU Electric & Gas Overhead Extensions for Small Loads

6.1.2.2.5.1 Overhead Extensions For Small Loads

• Single phase permanent retail customers having an estimated maximum demand of less than 20 kW

• Allows for up to 300’ of facilities extension, including primary, secondary and service

• Extensions typically for residential subdivision, single family residential and smaller commercial loads.


TXU Electric & GasOverhead Extension - Single Phase less than 20 kW

Overhead Transformer

Total distance = 300 feet or less (Primary + Secondary + Service)

Any CIAC amount due from the retail customer will have Federal Income Tax added at the rate of 28 percent.

Existing Facilities

New Facilities


TXU Electric & Gas Underground Extensions for Small Loads

6.1.2.2.5.2 Underground Extensions For Small Loads

• Single phase permanent retail customers having an estimated maximum demand of less than 20 kW

• Allows for an amount of underground facilities equivalent to 300’ of overhead single phase facilities, including primary, secondary and service

• Extensions typically for residential subdivision, single family residential and smaller commercial loads.

• The Retail Customer may at their option elect to provide the civil construction required for TXU Electric facilities to reduce any CIAC amount owed and/or to improve overall project coordination.


TXU Electric & GasUnderground Extension - Single Phase less than 20 kW

Retail Single Customer - 132 ft Total Equivalent Distance in dirt or chunk rock soil, 96 feet in solid rock, or up to $2,730 per location or meter (Primary + Secondary + Service)Retail Multi-Customer - 119 ft Total Equivalent Distance in dirt or chunk rock soil, 86 feet in solid rock, or up to $2,445 per location or meter (Primary + Secondary + Service)

Pad Mount Transformer

Existing Facilities

New Facilities


TXU Electric & Gas

Calculation of Contribution in Aid of Construction All Other Extensions

6.1.2.2.5.3 Calculation Of Contribution In Aid Of Construction (CIAC) For All Other Extensions

• Applies to any three phase permanent retail customer or any permanent retail customer with an estimated maximum demand of 20 kW or greater (larger commercial/industrial and multi-family)

• Any CIAC requirements are calculated utilizing the following formula:

CIAC amount = Direct Cost - (Standard Allowance Factor x Maximum kW Demand)

• Direct cost is the current average cost of the delivery system facilities necessary to provide delivery service to retail customer

• Standard Allowance Factors are: $27/kW - Secondary voltage retail customers$19/kW - Primary voltage retail customers$3/kW - High voltage retail customers

• Maximum kW demand is the estimate of customer's max 15-minute kW demand.• No CIAC is required if the amount calculated in the formula is zero or negative.

• Any CIAC amount due will have Federal Income Tax added at the rate of 28 percent.• The Retail Customer may at their option elect to provide the civil construction required for TXU Electric

facilities to reduce any CIAC amount owed and/or to improve overall project coordination.


TXU Electric & GasUnderground Extension - Greater Than 20 kW

1000 kWDemand

Load

Allowable Expenditure:Secondary POD = 1000 kW x $27/kW = $27,000Primary POD = 1000 kW x $19/kW = $19,000



TXU Electric & GasRetail Customer Requested Facility Upgrades

6.1.2.2.5.4 Retail Customer Requested Facility Upgrades

• Applies to existing retail customer that is adding load that will exceed the capacity of the Company’s existing facilities

• Company will upgrade its existing facilities to accommodate the added load and any CIAC requirement will be calculated in accordance with 6.1.2.2.5.3

• Only those costs associated with upgrading the existing facilities are included in the CIAC calculation.

• The additional kW requirements will be used to determine the Standard Allowance Factor in accordance with 6.1.2.2.5.3.


TXU Electric & GasNon-Standard Facility Extensions

6.1.2.2.6 Non-Standard Facility Extensions: Distribution

• Non-standard facilities include but are not limited to a two-way feed, automatic or manual transfer switches, service through more than one point of delivery, redundant facilities,facilities in excess of those normally required for service, or facilities necessary to provide service at a non-standard voltage.

• Company shall collect any amount for the installation of retail retail customer requested non-standard facilities prior to construction of these facilities.

• Any CIAC amount due from the developer /retail customer will have Federal Income Tax added at the rate of 28 percent.


TXU Electric & GasExcess Facilities Overhead Extension

200 ft

30 ft

- - - Least Cost design - $1,500—— Retail customer requested design - $2,500

CIAC = $1,000




TXU Electric & GasExcess Facilities Underground Extension

150 ft

30 ft

80 ft UG Service

- - - Least Cost design - $2,000—— Retail customer requested design - $3,400

CIAC = $1,400




TXU Electric & GasTemporary Delivery System Facilities

6.1.2.2.7 Temporary Delivery System Facilities: Distribution

• Retail customer requested distribution service for a single, continuous period of time which is less than twelve consecutive months or for any construction power request

• Retail customer shall pay to TXU Electric, the estimated installation and removal cost including non-salvageable materials of temporary facilities required by retail customer for the provision of temporary electric service.

• Retail customer shall pay this cost prior to construction of these facilities.


TXU Electric & GasRemoval and Relocation of Facilities

6.1.2.2.8 Removal And Relocation Of Company's Facilities: Distribution

• Retail customer is requesting the removal or relocation of Company’s existing facilities from retail customer’s premise.

• If a retail customer requests relocation or removal of existing TXU Electric facilities due to added or new load resulting in added revenue and requiring a change in retail customer’s existing distribution requirements, such relocation cost will be included as a direct cost in the calculation of CIAC requirements as outlined in 6.1.2.2.5.3.

• An exception to this provision are those relocations that are performed at the request of municipalities for the limited purpose of street widening and street straightening. Pursuant to PURA, the utility bears the relocation cost in these cases.


TXU Electric & GasFacilities Relocation

- - - - Existing Facilities——— Relocated Facilities

These existing facilities must be situated such that the relocation of these facilities is necessary for the construction of or to maintain clearance from a new building or building expansion.

New Building or Expansion


TXU Electric & GasImplementation Guidelines

• TXU Electric & Gas will provide a 90-day transition period for all bonafide projects that are truly in the development pipeline.

• Qualifying transitional projects will be administered under the 2001 policy.


TXU Electric & Gas

Effective Dates for Installation Requirements - Residential Subdivisions

In order to qualify as a transitional project and have the project served utilizing 2001 policy the project:

• Must have project plans/plats in the TXU Electric & Gas design process by February 1, 2002.

• Must be engaged in active, continuous site development with ongoing discussions with TXU Electric & Gas project management.

• Must be sufficiently completed such that TXU Electric & Gas has begun - or can begin - the installation of its facilities by June 1, 2002, including:

• Plans/plats approved by governing body• Property at final grade, (where TXU Electric & Gas facilities are to be installed),

for the specific phase being developed such that TXU Electric & Gas facilities are being or can be installed in conjunction with other utilities serving this phase

• ROW cleared• Roads cut to grade or paved


TXU Electric & Gas

Effective Dates for Installation Requirements - All Others

In order to qualify as a transitional project and have the project served utilizing 2001 policy the project:

• Must have service required date on or before January 31, 2002 • Must be engaged in active, continuous discussions with TXU Electric & Gas

project management.• Must be sufficiently completed such that TXU Electric & Gas can provide

permanent service on or before January 31, 2002• Agreement exists that commits TXU Electric & Gas to provide service under the

2001 line extension policy

Documents

Electric Line Extension Policy Review