Electric Distribution Line Extension Policy and Fundamentals

Electric Distribution Line Extension Policy and Fundamentals

July 30, 2020 | Online :: Central Time

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The objective for this course is to expose attendees to the process of developing and administrating an effective line extension policy for both commercial and residential clients. The course will share several models and strategies of execution and reinforce these principles with case studies from utilities in various service territories. This course will provide a baseline training for all distribution stakeholder interested in learning the fundamentals to technical aspects of line extension development.

Learning Outcomes

  • Review the fundamentals of a line extension, how they work, and the different parties involved
  • Describe the nuances of line extension policy development
  • Present case examples of how polices are administered at CPS Energy, Xcel Energy/SPS Electric Distribution- New Mexico, and Roanoke Electric Cooperative
  • Discuss rate examples and various calculation methods
  • Describe differences and methods for line extension policy across IOU, cooperative, and municipal utilities
  • Identify line extension policies in both commercial and residential applications
  • Share revenue models, costs, and charges for different load variables
  • Review major challenges commonly faced by utilities when developing line extension policies and solutions



EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 0.4 CEUs for this event.


Requirements for Successful Completion of Program

Participants must sign in/out each day, be in attendance for the entirety of the course

Instructional Methods

Power Point presentations and open discussion will be used


Thursday, July 30, 2020 – Central time

12:45 – 1:00 pm :: Log In and Sound Check

1:00 – 5:00 pm :: Course Timing

Course Introduction

  • Scope
  • Introduction of Instructors and Attendees

Electric Utility Basics

  • Power System Description
  • Definition of Electrical Terms/Electric Formulas
  • Distribution Transformer Basics

Electric Distribution Line Extension Policy

  • What is an Electric Distribution Line Extension Policy?
    • Does it Include Off-Site Distribution Line Extensions?
  • Who approves the respective Electric Utility’s Line Extension Policy?
    • IOU – Public Utility Commission
    • COOP – Members, FERC, PUC, RUS
    • Municipal – City Council, PUC
    • Does the Utility Company Serve/Operate in Multiple Varying Regulatory Areas?
      • Example: AEP in Multiple States
  • Why is a Line Extension Policy Necessary?
    • Reduce the Electric Utility Company’s Risk
  • What Affects Line Extension Policies?
    • Current Development Trends
      • OH versus UG
    • Economic Markers of an Area Including but not Limited to:
      • Employment Opportunities
      • Population Growth
    • Competition in Electric Utility Service Areas
      • Single Certified versus Multi-Certified
  • General Considerations in Development of a Line Extension Policy
    • Cost to Serve the Specific Customer Class (ie. Residential, C&I, etc.)
    • Rate for the Electric Service Provided of the Specific Customer Class
    • Annual Revenue Expected for the Load
      • (Rate X Usage)
      • Energy Costs
      • CAPEX Costs (to Build Distribution facilities)
      • OPEX Costs (to Maintain Distribution facilities)
      • Administrative and General costs
      • Franchise Fees
      • Property Taxes
      • WACC – Weighted Average Cost of Capital
      • Depreciation Allowance (Life Expectancy) for Plant in Service (Poles, Wires, Transformers, Etc.)
  • What is a Contribution in Aid of Construction (CIAC) and how does it Work?
    • Depends on Customer Allowance Given for Standard Service
    • Usually Involves Present Worth of a Future Series of Revenue (Electric Bill) Payments
  • What are Refundable Charges?
    • Require a Separate Agreement to Ensure the Electric Utility’s Costs are Covered
  • What are Considered Non-Refundable Charges?
    • Ultimately, the Electric Utility Company will be Held Accountable to Rebuild and Restore in Event of Failure
    • These Charges will Eventually Find Their Way Into the Rate Base
  • What are One-Time Allowances?
  • Conclusion & Q&A
    • Need to Note the Line Extension Policy will Vary from:
      • One Utility Company to the Next
      • IOU, COOP and MUNI
      • And Every Rate Class is Different


Gary Roberts

Gary Roberts is a Professional Engineer with over 40 years’ experience in the Electric Utility industry, 25 years plus with TXU, worked on international engagements and the past 11 years with Pike Engineering in various capacities. Gary is a graduate of the University of Texas at Arlington with a BSEE and a graduate of Southern Methodist University with an MBA.

Jerry Josken, Senior Consultant, Pike Engineering

Jerry holds a BS in Electrical Engineering Technology from the Milwaukee School of Engineering and a MBA from North Central College. During his 30+ year career with Eaton’s Cooper Power Systems Jerry served in a variety of engineering capacities. Past leadership positions include Chair of IEEE Rural Electric Power Conference (2012) and GLEMS Distribution Equipment /Controls (2013-2014). Presently, Jerry coordinates Pike Engineering Professional Development Programs.

Online Delivery

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

  • You will receive a meeting invitation will include a link to join the meeting.
  • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
    • You will need to join the appropriate meeting at the appropriate time.
  • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
  • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.


Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

Event Standard RateAttendees

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