HomeMy WebLinkAbout4 Electric Connection Charge Agenda Item # 4
DONNER
PUblic Utility District
Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: April 12, 2001
Public hearing on ordinance amending electric connection charge
A public hearing is scheduled for Wednesday evening to receive input on the proposal to
increase the electric connection charge. The public hearing notice is stated broadly
ehough that the Board can adopt a flat rate connection charge or a connection charge
that is specific to overhead and underground services.
The electric connection charge is a fee that is charged to connect a new house or
business to the electric system. The idea has been to charge a fee that colllects what it
costs the District to make the connection. The fee includes:
1) A share of the transformer that steps the distribution voltage down to the
service voltage
2) The cost of the service wire to the house
3) The labor to install the wire and transformer
4) The labor to establish the record of the new customer
5) Various overheads
The connection fee is calculated by averaging the cost to install services throughout the
system.
There are two options for you to consider.
OPTION 1: Flat Rate Connection Charge. A flat rate charge of $1,100 per residential
connection would collect the revenues necessary to cover our costs. The advantage of
the flat rate charge is its ease of administration. The people who collect the fee do not
know whether the home is served by overhead or underground facilities.
Option 2: Specific Fee for Underground and Overhead Services. A fee schedule
could be adopted that collects a different fee based on whether the service is overhead
or underground from an overhead transformer or underground from an underground
transformer. The various fees would be as follows:
a) Overhead service from an overhead transformer $ 988.73
b) Underground Service from an overhead transformer 1,237.36
c) Underground Service from a padmount transformer 1,114.18
The advantage of a specific fee schedule is that it more accurately allocates costs
among customers, although even these fees would be based on average costs. The
disadvantage of this fee is the difficulty of administration because the staff person
collecting the fee will not know whether any individual service is overhead or
underground or whether the transformer is pole mounted or padmount
Bob Quinn will be available at the meeting to discuss the costs to install new electric
service connections.