| (a) Right to switchover.
(1) General principles. A consumer has the right to switch
retail electric service to any electric or municipally owned utility that
has the right to provide service in the area in which the consumer's consuming
facility is located, subject to the terms of any contract for electric service
entered into pursuant to the disconnecting utility's tariff. Because a consuming
facility for which a switchover is sought can obtain electric service from
the disconnecting utility prior to the switchover, an electric or municipally
owned utility shall give a switchover a lower priority than the elimination
of outages and requests for service to consuming facilities that do not have
service. Nevertheless, a switchover shall be performed as soon as reasonably
possible, and the disconnecting and connecting utilities shall strive to take
the actions required below more quickly than the deadlines listed below. In
addition, the disconnecting and connecting utilities shall minimize any outages
related to making a switchover.
(2) Options and availability. This section provides two switchover
options: partial switchover and full switchover. All subsections of this section
apply to electric utilities, while only subsections (a), (c), (e), and (g)
of this section apply to municipally owned utilities. The partial switchover
option is not available in a particular area prior to September 1, 1999 and
prior to such time as both the disconnecting and connecting utilities have
approved tariffs for transmission service at the transmission and primary
and secondary distribution voltage levels. Until the utilities have such approved
tariffs, subsections (d) and (e) of this section do not apply. In addition,
the partial switchover option is not available to the extent that it would
reduce the state's jurisdiction over a utility. The provisions for full switchovers
in this section become effective for a particular area once the electric utilities
that have a right to provide service in the area have tariffs in effect that
are consistent with this section.
(3) Limitations and refunds. A consuming facility may not be
switched more than once every 12 months. A consumer or connecting utility
who pays a switchover fee does not waive the right to seek a refund on the
basis that the switchover fee was excessive. In addition, a connecting utility
or consumer who buys facilities pursuant to this section waives the right
to seek a refund only if it expressly agrees to waive that right.
(b) Definitions. As used in this section, the following terms
have the following meanings.
(1) Idle facilities--The disconnecting utility's facilities
that are used to serve only the consuming facility being switched, as well
as the easements for these facilities. For consuming facilities served above
480 volts, idle facilities also include costs, or a portion of costs, pertaining
to the upgrade of transmission and distribution facilities that were necessary
to serve the consuming facility, if the current or prior owner of the consuming
facility agreed to pay the costs upon switching. In all other respects, idle
facilities do not include facilities that were installed or are being used
to serve more than one consuming facility, including: facilities that were
designed with a capacity greater than necessary to serve the consuming facility
being switched in order that additional consuming facilities could be served
using the facilities in the future; and upgrades that were made to common
facilities in order to serve the consuming facility being switched.
(2) Common facilities--The disconnecting utility's facilities
that are used, installed, or designed to serve more than one consuming facility,
except as specified in the definition of idle facilities.
(c) Documentation. The requests, notices, offers, agreements,
and switchover requests provided for in this section must be in writing, unless
otherwise indicated.
(d) Notice of switchover options. Upon receiving an oral switchover
request, the disconnecting utility shall at that time orally describe the
two switchover options, including stating that there is no charge for a partial
switchover, stating that there will be a switchover fee for a full switchover,
stating that switchover requests must be in writing, stating that written
general information on switchover fees will be provided within two working
days, and providing a fax number and mailing address to send the switchover
request. Within two working days of a switchover request that does not specify
whether a partial or full switchover is being requested, the disconnecting
utility shall provide the consumer a document describing the two switchover
options, including a statement that there is no charge for a partial switchover,
specifying for a full switchover the base charge and base charge adder and
stating that the facilities recovery charge will vary depending on the circumstances,
and providing the deadlines prescribed in subsection (f)(2)(C) of this subsection
for the disconnecting utility to notify the connecting utility after payment
of the switchover fee that the full switchover can proceed.
(e) Partial switchover.
(1) Description. Under the partial switchover option, the connecting
utility provides power to the consuming facility using the disconnecting utility's
transmission and/or distribution facilities. The disconnecting utility shall
provide the connecting utility transmission service to the same point of delivery
that the disconnecting utility provided electricity to the consuming facility
prior to the switchover. Except where necessary or where the connecting utility
requests it, all of the disconnecting utility's facilities needed to serve
the consuming facility prior to the switchover shall remain in place. The
disconnecting utility may not charge a switchover fee for a partial switchover,
except that it may charge the connecting utility a cost-based fee where the
connecting utility requests that the disconnecting utility remove facilities
that were needed by the disconnecting utility to serve the consuming facility
prior to the switchover. In addition, the disconnecting utility may charge
a switching customer any account closing fee that applies to all departing
customers, not just switching customers.
(2) Procedure for partial switchover. The disconnecting utility
shall contact the connecting utility within three working days of receiving
a request for a partial switchover in order to coordinate the switchover.
The switchover shall occur within eight working days of the disconnecting
utility's receipt of the request, unless the consumer agrees to a longer schedule
or unless good cause exists for not completing the switchover within eight
working days. If the switchover will not be completed within eight working
days, then the disconnecting utility must notify the consumer, with copies
to the commission's Office of Customer Protection and to the connecting utility,
providing the reasons why the switchover has been delayed and when the switchover
will be completed. This notice must be provided as soon as possible, by fax
to the commission's Office of Customer Protection, connecting utility, and,
if possible, the consumer.
(f) Full switchover. A full switchover involves the disconnecting
utility disconnecting its facilities and the connecting utility installing
and/or purchasing transmission and/or distribution facilities to serve the
consuming facility. If the consumer is a tenant, the consumer must obtain
the clear and specific agreement of the owner or owner's agent to switch over
the consuming facility and must provide it to the disconnecting utility as
an attachment to a notarized affidavit stating that the consumer has obtained
the owner's or owner's agent's agreement. This subsection does not apply within
municipalities exercising original jurisdiction that enacted switchover rules
by August 28, 1998 that provide for more expeditious full switchovers than
provided by this subsection.
(1) Switchover fee. The switchover fee applies regardless of
whether the consumer requesting the switchover has ever received service from
the disconnecting utility at the consuming facility. The fee consists of a
base charge and, where applicable, a base charge adder and facilities recovery
charge. The disconnecting utility may not include in the switchover fee a
charge for general administrative expenses related to closing the consumer's
account. However, the disconnecting utility shall charge a switching customer
any account closing fee that applies to all departing customers, not just
switching customers. Where the disconnecting utility is allowed to charge
for the original cost of facilities, it must deduct contributions in aid of
construction that apply to those facilities. Accumulated depreciation shall
be calculated using the depreciation rates that are currently used to book
depreciation. Upon the payment of the switchover fee or purchase, or refusal
of an offer to purchase, under the circumstances described in subparagraph
(B)(i) of this paragraph, any construction charges owed by the consumer, pursuant
to a contract entered into after the effective date of this subsection, for
idle facilities used to provide service to the consuming facility being switched
are extinguished.
(A) Base charge and base charge adder. A base charge applies
to the switchover of a consuming facility served at 480 volts or less. The
base charge is equal to the cost of removing any meter and drop line used
to serve the consuming facility, and shall be specified in the disconnecting
utility's tariff. The switchover fee shall not include the original cost less
depreciation and gross salvage of the meter and drop line for switchovers
for which the base charge applies. A base charge adder that is less than the
base charge must also be specified in the tariff to cover the situation where
a consumer switches more than one consuming facility on the same premises
at the same time. The base charge adder is equal to the cost of removing any
meter and drop line used to serve each additional consuming facility.
(B) Facilities recovery charge. The purpose of the facilities
recovery charge is to recover costs related to idle facilities, other than
meter and drop line costs covered by a base charge or base charge adder.
(i) Availability of facilities recovery charge. The disconnecting
utility may not impose a facilities recovery charge for idle facilities if
the connecting utility or consumer purchases the idle facilities at a price
equal to net book value and signs an agreement indemnifying the disconnecting
utility from liability for the facilities after the purchase of the facilities.
Before a consumer can purchase the facilities, it must prove that it has the
financial resources to protect the disconnecting utility from liability risks
resulting from the sale. Where more than one consumer requests a switchover,
the disconnecting utility may not impose a facilities recovery charge for
idle facilities if the connecting utility purchases the idle facilities and
the common facilities used to serve the consuming facilities being switched,
but not used to serve any consuming facilities not being switched, at a price
equal to replacement cost less depreciation and signs an indemnity agreement.
Replacement cost is equal to: the average original cost of like facilities
installed in the most recent full calendar year for which information is available,
that would be necessary to serve the consuming facilities being switched if
facilities were first installed to serve the consuming facilities at the time
of the switchover requests; plus the cost of easements for the facilities
if the easements were obtained at the time of the switchover requests. The
disconnecting utility also may not impose a facilities recovery charge if
it refuses an offer to purchase under the conditions described in this subparagraph.
(ii) Components of facilities recovery charge. The facilities
recovery charge consists of the net book value (original cost less depreciation)
less net salvage (gross salvage less cost of removal) of the idle facilities.
In determining the net book value of the facilities, the original cost of
the specific facilities should be used. If the original cost of the specific
facilities is not available, the installation date of the facilities shall
be determined or estimated and the average original cost of like facilities
installed by the disconnecting utility in that year shall be used. If average
original cost information is not available for the year in which the idle
facilities were installed, then the average original cost of like facilities
installed in the most recent full calendar year for which information is available
shall be used and shall be deflated to the installation date of the idle facilities.
Where average original cost information is used, the average original cost
information shall be determined using the information for the operating division
in which the consuming facility to be switched is located, if the disconnecting
utility maintains original cost information by division.
(C) Labor charges. Labor charges for removing facilities are
limited to a reasonable estimate of the direct labor cost (salary, insurance,
pension, payroll taxes, etc.) for the time of persons needed to remove the
facilities. No allocation of general overhead labor is allowed, but any necessary
supervisory or engineering labor specific to the removal of the facilities
may be included.
(D) Quantification of charges. The calculation of the base
charge, base charge adder, and facilities recovery charge may involve the
making of estimates. To the extent that there is a range of reasonable estimates
for a particular charge, the estimate at the low end of the range should be
used, so that the amount of the switchover fee will be minimized, but still
be reasonable and in conformance with this section. Unless the consumer agrees
otherwise, there will be no refund or surcharge if the actual cost of performing
the switchover is less than or greater than the switchover fee. Instead of
a utility-specific base charge and base charge adder, the commission may,
through the issuance of an order, establish a Cont'd... |
