Three-phase primary distribution powerline along Argentine Alley between Glasgow and River Streets in Rico, Colorado.

Ore Cart photo

by Allyn Svoboda
Publisher

The extension cost-allocation philosophy for Town of Rico's proposed sewer and wastewater treatment project is the opposite of San Miguel Power Association's powerline extension policy. A November Rico 2019 ballot question will seek voter approval of atown-wide property tax increase for Town of Rico for construction of sewer/wastewater plant construction costs in the business area. Town of Rico wants everyone to pay for a new sewer system to serve a few.

Rico's electric service is supplied by San Miguel Power Association (SMPA), a consumer-owned, not-for-profit electric cooperative association.

Below are excerpts from the San Miguel Power Association "Extension Policy" describing who pays for what to serve new customers.

San Miguel Power Assocation Member Policy 301
Line Extension and Alteration

Single customer pays for all construction costs

IV. A. When an Applicant requests a New Service or an Upgraded Service, the Applicant shall pay the actual costs of any required line extension and any applicable fees.

Multiple new customers share construction costs

IV. D. If SMPA receives applications for New Service or Upgraded Service that result in a line extension that would be used to serve more than one Applicant prior to start of construction of the line extension, then estimates shall be calculated such that the costs of the line extension are appropriately shared.

SMPA owns the extension unless exception for consumer ownership is defined

4K. All extensions shall, upon completion and approval by SMPA, become SMPA property except for a facility which is, by agreement with SMPA, owned, operated and maintained by the Consumer.

New construction cost allocation philosophy

1. OBJECTIVE: The purpose of this policy is to set forth the service and distribution line extension and alteration requirements to be observed by SMPA in a manner which fairly allocates the cost of system growth and minimizes the effect of growth upon rates.)

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