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H. Extension of Facilities - Overhead

Table of Contents

H-1 Extensions - Overhead

 

H-2 Payments and Refunds

 

H-3 Extension of Transmission Facilities

 

H-1 Extensions - Overhead

Standard Facilities

NB Power's standard distribution facilities are for front lot overhead service.

All other types of facilities are considered optional. 

This policy covers standard facilities for metered Customers for front lot overhead extensions. Optional facilities are covered in Section I - Extension of Facilities - Optional Underground and Section J - Optional Facilities.

Conditions for Overhead Extension

NB Power makes overhead extensions of its facilities to serve Applicants provided the following terms and conditions are met: 

  • The location to be served must be within a territory where NB Power provides service.
  • The Applicant and the anticipated usage meet the requirements of all applicable portions of these Policies. 
  • The location to be served must be accessible by on-road vehicles. 
  • Rights-of-Way on Public Roads as maintained by the New Brunswick Department of Transportation:
    • Will be obtained and cleared at no cost to the Customer.
    • The Customer is not responsible for maintenance.

All Other Rights-of-Way:

  • The Customer is responsible for supplying and clearing as well as any costs incurred by NB Power in acquiring easements.
  • If tree and brush clearing is performed by NB Power, the Customer is charged. These charges are non-refundable.
  • The Customer is not responsible for maintenance. The Customer will permit NB Power to trim trees around facilities as required.
  • NB Power requires an agreement relating to contributions in compliance with these policies. 
  • All facilities will be constructed in accordance with NB Power's Standard Construction Practices manual and applicable CSA Standards and will be owned, operated and maintained by NB Power.
  • If NB Power requires space for transformers, switches or other facilities of any kind in order to provide service to the Customer, the Customer will furnish free of charge adequate space for and acceptable access to this equipment. The Customer is restricted from placing permanent structures within this place.

 

Standard Facility Allowance

Standard facility allowances by Rate Category are specified as follows:

Residential (Urban, Rural and Seasonal):

NB Power supplies at no charge to the Customer up to 90 meters of single-phase overhead service and the required transformation and metering for each Customer eligible for a Residential Service Rate Category. Measurement of the distance starts from the Customer's approved Delivery Point. Delivery is at an NB Power standard service voltage and Delivery Point as specified in Section K - Connection of Customer Facilities. 

General Service and Small Industrial Rate Categories:

NB Power supplies at no charge to the Customer the required transformation, metering and up to 90 meters of single-phase or three-phase overhead service. Measurement of the distance starts from the Customer's approved Delivery Point. Delivery is at an NB Power standard service voltage and Delivery  Point as defined in Section K - Connection of Customer Facilities.

Large Industrial:

For Large Industrial Customers served from the transmission system refer to Section N, Large
Industrial Rate Schedule. 

For Large Industrial Customers served from the distribution system, NB Power supplies at no charge to the Customer primary metering and up to 90 meters of three-phase overhead primary service.

Measurement of the distance starts from the Customer's approved Delivery Point. Delivery is at an NB Power standard service voltage and Delivery Point as defined in Section K - Connection of Customer Facilities.

Standard Facility Credit

Customers who request the extension of standard facilities beyond 90 meters are credited with a standard facility credit. This credit is  applied toward the Construction Charges associated with the extension of standard facilities specified below. The standard facility credit is equal to the standard facility distance allowance per Customer times the average per meter Construction Charge of the extension.

Construction Charge for Extension of Overhead Facilities

This Construction Charge is for the extension of overhead facilities and is determined using NB Power's estimated cost times the contribution ratio given in Section O - Fees and Charges, Extension of Overhead Facilities Charges.

For the purpose of calculating the Construction Charge, the cost of the extension is estimated using the shortest distance over which NB Power can build a line from the Customer's approved Delivery Point to the nearest NB Power Facility that forms part of the Distribution System, consistent with sound economic and engineering practices. Should NB Power choose a longer route, the Customer will not be charged for the additional distance.

An optional facilities charge is applied to a Residential Service Customer requesting three-phase service according to Section J - Optional Facilities, Optional Facilities Charge.

Abandoned Facilities

NB Power Facilities which are considered to serve no useful purpose in the foreseeable future are removed. This means the conductor, poles, transformers and all other related equipment are removed and are therefore considered abandoned.

Facilities which have been isolated but left in place are not considered abandoned. A customer contribution is required if the facilities require upgrading for the addition of a new service in order to meet engineering and safety standards. This contribution is equal to the estimated cost of the upgrade times the contribution ratio. 

NB Power determines the suitability for use of any existing facilities.

Customer Contributions

Customer contributions for extensions of standard facilities are the sum of all charges related to the extension less than standard facility credit discussed above.

Removal of Overhead Facilities

If a Customer requests that existing overhead facilities be removed, the Customer pays a non-refundable contribution to cover dismantling costs and the sacrificed life value of the assets removed.

Wharves

NB Power will not provide NB Power Facilities on wharves, excluding Metering Equipment. NB Power may act as a contractor to extend Customer Facilities beyond the beginning of the wharf when no licensed electrical contractor is available to perform the work. The Customer is charged for this work.

 

H-2 Payments and Refunds

Payment of Customer Contribution

Applicants are expected to pay the full amount of the contribution in advance. Acceptable forms of payment include certified cheque, bank draft or cash. The exception is municipal, provincial or Federal government departments which provide letters of intent. 

Refund of Customer Contribution

Customers will be entitled to a refund if additional development on the extension takes place within five (5) years from the date the contribution was paid.

Refunds are non-interest bearing and will be made either on the Customer's request or by NB Power automatically during the fifth year following the date the contribution was paid.

The total amount of the refund will not exceed the original refundable contribution. Any balance of the contribution that has not been refunded during this five (5) year period is retained by NB Power.

If NB Power utilizes the extension for its own operating purposes such as a tieline during this five (5) year period, the total amount of the refundable contribution, less any previous refunds, will be returned.

Refunds are calculated as shown in Section O - Fees and Charges, Extension of Overhead Facilities Refunds. Any refunds owing to the Customer will first be applied to any outstanding balances owed to NB Power by the Customer. Any remaining balance will be paid to the
Customer.

Distribution Line Extensions:

Extension of a distribution line (750 Volts or less) from a section of line upon which a contribution has been paid will entitle the original contributing Customer to one (1) refund for each permanent Customer added.

Extension of a distribution line (over 750 Volts) from a section of line upon which a contribution has been paid will entitle the original contributing Customer to one (1) refund per primary extension.

Basis for Refunds

The contributing Customer will normally receive refunds based on the standard facility distance allowance times the average per meter Construction Charge of the extension. However, if the Customer contributed to a three-phase extension and the service added is single-phase, the refund will be adjusted by one-half.

If a Customer upgraded from single to three-phase service and contributed based on the addition of two-phases, and a single-phase Customer requests service from that section of facilities, then the Customer who contributed to the facility is not entitled to a refund.

 

H-3 Extension of Transmission Facilities

Large Industrial

NB Power will extend the transmission system to the Customer's substation terminating structure. The Customer will provide a guarantee for the total cost of the transmission system expansion less any contribution to capital made in accordance with Attachment K of NB Power’s Open Access Transmission Tariff (OATT). Guarantees may be in the form of cash, letters of guarantee from Chartered Canadian banks or trust companies, bearer bonds guaranteed by either the Government of Canada or the Province of New Brunswick, or surety bonds issued by a duly authorized company.

This guarantee is reduced each year by an amount equal to 10% of the total of the previous twelve months' paid bills for power and energy. If the guarantee is not fully refunded within the first five (5) years, NB Power will demand payment for the remaining amount of the guarantee.

When the guarantee is cash, the interest rate shall be equal to the prime rate, as quoted by the Royal Bank of Canada, minus two per cent (2%).

 

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