| (2) Developers may be required to provide contributions
in aid of construction in amounts sufficient to reimburse the utility
for:
(A) existing uncommitted facilities at their original
cost if the utility has not previously been reimbursed. A utility
shall not be reimbursed for facilities in excess of the amount the
utility paid for the facilities. A utility is not required to allocate
existing uncommitted facilities to a developer for projected development
beyond a reasonable planning period; or
(B) additional facilities compliant with the commission's
minimum design criteria for facilities used in the production, transmission,
pumping, or treatment of water or the commission's minimum design
criteria for wastewater collection and treatment facilities and to
provide for reasonable local demand requirements. Income tax liabilities
which may be incurred due to collection of contributions in aid of
construction may be included in extension charges to developers. Additional
tax liabilities due to collection of the original tax liability may
not be collected unless they can be supported and are specifically
noted in the approved extension policy.
(3) For purposes of this subsection, a developer is
one who subdivides or requests more than two water service connections
or sewer service connections on a single contiguous tract of land.
(d) Cost utilities and service applicants shall bear.
(1) Within its certificated area, a utility shall be
required to bear the cost of the first 200 feet of any water main
or sewer collection line necessary to extend service to an individual
residential service applicant within a platted subdivision unless
the utility can document:
(A) that the developer of the subdivision refused
to provide facilities compatible with the utility's facilities in
accordance with the utility's approved extension policy after receiving
a written request from the utility; or
(B) that the developer of the subdivision defaulted
on the terms and conditions of a written agreement or contract existing
between the utility and the developer regarding payment for services,
extensions, or other requirements; or in the event the developer declared
bankruptcy and was therefore unable to meet obligations; and
(C) that the residential service applicant purchased
the property from the developer after the developer was notified of
the need to provide facilities to the utility.
(2) A residential service applicant may be charged
the remaining costs of extending service to his property; provided,
however, that the residential service applicant may only be required
to pay the cost equivalent to the cost of extending the nearest water
main or wastewater collection line, whether or not that line has adequate
capacity to serve that residential service applicant. The following
criteria shall be considered to determine the residential service
applicant's cost for extending service:
(A) The residential service applicant shall not be
required to pay for costs of main extensions greater than two inches
in diameter for water distribution and pressure wastewater collection
lines and six inches in diameter for gravity wastewater lines.
(B) Exceptions may be granted by the commission if:
(i) adequate service cannot be provided to the applicant
using the maximum line sizes listed due to distance or elevation,
in which case, it shall be the utility's burden to justify that a
larger diameter pipe is required for adequate service;
(ii) larger minimum line sizes are required under subdivision
platting requirements or building codes of municipalities within whose
corporate limits or extraterritorial jurisdiction the point of use
is located; or
(iii) the residential service applicant is located
outside the CCN service area.
(C) If an exception is granted, the utility must establish
a proportional cost plan for the specific extension or a rebate plan
which may be limited to seven years to return the portion of the applicant's
costs for oversizing as new customers are added to ensure that future
applicants for service on the line pay at least as much as the initial
service applicant.
(3) The utility shall bear the cost of any oversizing
of water distribution lines or wastewater collection lines necessary
to serve other potential service applicants or customers in the immediate
area or for fire flow requirements unless an exception is granted
under paragraph (2)(B) of this subsection.
(4) For purposes of determining the costs that service
applicants shall pay, commercial customers with service demands greater
than residential customer demands in the certificated area, industrial,
and wholesale customers may be treated as developers. A service applicant
requesting a one inch meter for a lawn sprinkler system to service
a residential lot is not considered nonstandard service.
(e) Other Fees for Service Applicants. Except for an
affected county, utilities shall not charge membership fees or application
fees.
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