On July 1, 2007 a series of new policies went into effect for all applicants seeking to have a power line extended to a new meter location, or desire a line to be relocated. These were a substantial change from previous BEC practices, but they are necessary to maintain the financial integrity of your Cooperative.

Historically, a significant portion of the cost associated with the construction of new line extensions has been funded by BEC’s current Member-Owners through the electric bills they pay. The effect on the financial well-being of the Cooperative is not significant if the cost of a line extension is offset by a reasonable return on the investment. However, it is not unusual for BEC to incur expenses of $10,000 or more when constructing new line extensions.  In such instances, the debt incurred exceeds the anticipated revenue generated through the rates.  

“The policy changes will shift a larger percentage of the construction funding to those who are requesting the line extension,” said Bobby Waid, CEO and General Manager. “This will reduce BEC’s future long-term debt requirements, which defers the need for potential rate adjustments. These new policies are consistent with the current practices of other utilities in the state.”

 Summary of Changes

Below is a summary of the new policies:

• Applicants requesting a new line extension or a line relocated will be required to pay a non-refundable Engineering Fee at the time of the extension or relocation request.  The engineering fee ranges from $200 to $450, depending upon the type of project involved. 

• Applicants who seek a change in the design after the engineering is complete will be required to post an additional engineering fee. 

• The Cooperative will provide a construction credit of up to $1,700 for new line extensions, depending upon the type of extension. 

•  The applicant will be required to pay a non-refundable charge for any costs in excess of BEC’s construction credit.

• The applicant will be required to guarantee that the service will be connected for a minimum of one-year.

• Applicants seeking a line relocation will be required to pay a non-refundable charge equal to the estimated cost of the project.

• Developers will be required to pay an engineering fee based on the total lot frontage of the development. 

• In most instances, developers will be required to pay a non-refundable charge for the total cost of constructing a “trunk” line to serve the development.

Details of the Policies

Our engineering department staff can respond to specific questions our Members may have regarding these policy changes.  In addition, these policies will be available here at our website in the near future.

 Maintaining Reliability

While the new policies will ease the cooperative’s obligation to find additional money to fund some new construction projects, BEC still faces additional challenges in managing the rapid growth occurring on our system.  As a result of this growth, new substations, main power transformers, feeder line upgrades and a host of other equipment have been and will continue to be upgraded as growth continues.  

BEC employees work tirelessly to provide reliable electric service at the lowest reasonable cost consistent with sound business and safety practices.

See Line Extension Tariff (PDF file)

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