Development Policies
City of Oak Ridge, Tennessee
Electric Department
PAUL C. BOYER, Jr.
City
Manager
Jack L. Suggs
Electrical
Director
November
2000
Table of Contents
2 The concept of Justified
Investment
3.1 Overhead Residential Policy
3.1.1 Primary Extension Policy for Residential Areas
3.1.2 Individual Services for Residences
3.2 Underground Residential Policy
3.2.1 Primary Extension Policy for Residential Areas
3.2.2 Individual Services for Residences
3.3 Residential Street Lighting Policy
4.1 Overhead Extensions Policy
4.1.1 Existing Overhead Primary Extension Policy for
Commercial Areas
4.1.2 Individual Services for Commercial Installations
4.2 Underground Commercial Extension Policy
4.2.1 Existing Underground Primary Extension Policy for
Commercial Areas
4.2.2 Individual Underground Services for Commercial
Installations
4.3 Street Lighting Policy for Commercial Areas
5.1 Upgrading of Existing Services
5.2 Second Voltage Services to a Structure
5.3 Relocation of Existing Facilities
5.4 Contribution toward Substation Construction
Development Policies
City
of Oak Ridge, Tennessee
Electric
Department
The City of Oak Ridge offers a variety of services to its
citizens. These include provision of
electric power through its electric distribution system. The Electric System functions through an
integrated series of laws, contracts and policies.
The purpose of this document is to summarize the policies of
the City of Oak Ridge Electric Department with regard to electrical
extensions. It is designed to be
helpful to land developers, contractors and new customers in our City.
The administration of the policies outlined in this document
is the responsibility of the Electric Department. The Department stands ready to answer questions or supply
additional information about your specific project.
All Distribution of power is subject to the Rules and
Regulations for Distribution of Power by the City of Oak Ridge. The Rules and Regulations are adopted by
ordinance of the City and are available to all customers.
Justified investment is a
concept under which the expected revenue from a particular project is compared with
the capital, maintenance and operation costs of infrastructure for that project[1]. At the minimum justified investment, the
debt service generated by a project is covered by the electric rates and
contributes to the routine maintenance and operation needs of the system. The justified investment is equivalent to
the expected annual gross income from the project.
Where analysis shows that the revenue will
not cover the installation, the City requires an upfront cost payment for the
difference. If a dramatic expansion of
the system is required, or if cost recovery is believed to be over a long
period, the developer may be required to pay part or all of the expansion cost
up front and be partially reimbursed as development takes place for the first
five years, up to a defined amount.
Installation of overhead electric lines within residential
developments is generally performed without cost. It is the philosophy of the City that overhead service represents
the “basic service level” that is provided for in the rate structure. All such projects, however, must meet the
“justified investment” in order to be fully funded by the City.
Individual overhead services for residential loads are
installed at no cost to the owner. In
residential neighborhoods, several houses are normally fed from a single
transformer, so sometimes easements can be required.
In cases where a home is far removed from the transformer
location, a primary (high voltage) extension is required. [3] This is because of the voltage loss that
occurs at lower voltages over significant distances.
In either case, the City requires that the property owner
provide a clear path for the service installation, including tree trimming or
removal and easements as appropriate.
The customer is required to install conduits, vaults and
other equipment required for electrical installation. City forces install the underground cables, transformers and make
all connections. The cost of the City’s
investment, however, is limited to the justified investment for the
subdivision, as described below.
For subdivisions over ten lots, a ten year build out would
be assumed for revenue calculations.
Anticipated revenue at the three year mark (33% complete) would be used
in calculating the justified investment.
If permanent meter installation in the development exceeds this
expectation, the developer is generally entitled to a refund of any invested
monies sufficient to reflect the actual justified investment for that portion
of the development completed at the three year mark.
Standards and specified required inspections are available
through the Department.
The customer is responsible for installing the conduit for
services and connecting to stubouts provided in the distribution system. Where such stubouts have not been provided, the
customer is not allowed to penetrate vaults or other structures that contain
energized parts. Conduits should be
extended to an agreed location and the City will make the required
connections.
Standards and specified required inspections are available
through the Department.
If a resident in an overhead area requests an underground
service in addition to the items listed above, an estimate is prepared for the cost
of extra work required and must be paid before work begins.
Note: The City will not accept wire pulled in by any other
party. In cases where contractors have
pulled in wire, we have removed it and returned it to the contractor.
Street lighting in residential areas is intended to provide
minimum guidance for vehicular traffic and for pedestrians. It is not intended to provide uniform
lighting or security for the residents.
Lights are normally placed approximately every two hundred fifty feet
and at intersections.
For overhead areas, street lighting is attached to every
other pole. Depending on the
circumstances a variety of lighting heads may be used, ranging from 100 to 450
watts.
For underground residential areas, the City offers two types
of lights. The standard underground
light is mounted on a fiberglass pole and has a plain profile. A decorative light is available for the difference
in cost between the two fixtures.[4]
Public street lighting is not available outside of the City
limits.
Overhead electric lines are installed into commercial areas
under the justified investment policy.
Anticipated loads normally justify the costs.
In cases where the costs are excessive or income may be
uncertain, the City may require up front cash contributions for the work with
or without reimbursement, establish minimum bills, or seek other aid to
construction.
Due to transformer stocking issues and the desire of the
City to avoid “platform substation” construction, overhead electric services
are not always available for commercial services. Where they are, the services are installed under the justified
investment policy. The City maintains
the service up to the weather head.
In cases where the costs are excessive or income may be
uncertain, the City may require up front cash contributions for the work with
or without reimbursement, establish minimum bills, or seek other aid to
construction.
Note that there are defined limits to the voltage/phase/load
combinations supplied by the City.
Commercial subdivision build out is estimated to occur over
a ten year period. Using this formula,
revenue projections at the end of the first three years (33% complete) are used
in calculating the justified investment.
If build out in the development exceeds this expectation, the developer
may be entitled to a refund of invested monies sufficient to reflect the actual
justified investment for that portion of the development completed at the three
year mark.
Developers of underground commercial areas are required to
install all conduit and vaults for primary cable. The City installs the cable, subject to justified investment
considerations.
Standards and specified required inspections are available
through the Department.
The owners are required to install primary conduit to a
designated point on the property line and to place a concrete transformer pad
to City specifications. The contractor
also installs all secondary conduits and pulls all secondary wire.
The City maintains the primary side of the installation and
provides the transformer. The owner
maintains all secondary wiring.
Standards and specified required inspections are available
through the Department.
Commercial subdivision build out is estimated to occur over
a ten year period. Using this formula,
revenue projections at the end of the first three years (33% complete) are used
in calculating the justified investment.
If build out in the development exceeds this expectation, the developer
may be entitled to a refund of invested monies sufficient to reflect the actual
justified investment for that portion of the development completed at the three
year mark.
When a commercial area is developed in overhead areas,
street lighting is attached to every other pole if the distribution system is
near the roadway. Depending on the
circumstances a variety of lighting heads may be used, ranging from 100 to 450
watts. Upon specific request and
unusual circumstances, the City may install additional lighting, but this is
rare.
In new underground commercial parks, the developer of the
property is responsible for the lighting.
The improvements should be installed as part of the development and
dedicated to the City for maintenance.
Standard specifications are available for the lights and poles.
Public street lighting is not available outside the City
limits.
The upgrading of electric service is considered to be the
same as a new service. As such, the
City uses the justified cost investment approach to evaluate investment.
In the majority of cases, the additional loads that drive
the upgrade easily justify the investments required by the City. This is especially true in commercial
settings. Costs associated with the
relocation of the service itself (for example moving a transformer to make room
for a building expansion) are considered part of the upgrade and are covered by
justified investment. Costs associated
with relocation of lines, streetlights, anchors or other improvements outside
of the service itself (for example to make room for the building or parking lot
or that improve aesthetics) are not covered under justified investment and are
billed at full cost (see section 5.3)
In cases where a single customer desires more than one
voltage to a building, the City will attempt to comply given that a specified
set of safety related conditions are met.
The customer, however, must pay the full cost of providing the second
voltage. In these cases, the customer
must evaluate the costs of the second voltage in comparison with providing for
his own internal voltage transformation or other solutions.
It is the position of the City that all electric lines in
the City give evidence in fact that they are necessary and part of an overall
operating system with a right to occupy their position in space.
The City receives numerous requests to relocate our
facilities. Whenever we replace a pole,
we relocate the pole to a property line whenever feasible. We do not, however, relocate poles upon
request without charge. It is the
position of the City that all costs associated with the relocation of specific
facilities should be borne by the party requesting (and benefiting from) the
relocation.
In terms of a development project, we believe that the cost
of relocation of lines is a specific component to be considered in the
particular layout version of the project.
We have consistently stated that the lines were present when the project
was envisioned, and that if the lines impacted the value of a property or
project, such impact has been in place since the lines were constructed. We are willing and able to provide cost
estimates to help developers or builders evaluate the cost of their
projects. The City has never believed
that the ratepayers should be responsible for expenses generated by these
private concerns.
The City’s policy that commercial loads that require an
addition to a substation must bear the cost of the expansion. Specific negotiations with the customer are
required
It is the practice of the City to offer only one feed from one circuit to a customer.