Line Extension Policies: Contributions in Aid of Construction

September 9, 2014

2 - 3:30 p.m. ET

This webinar is sixth in a 7-part series on Accounting and Finance. Register now for this webinar or the entire Accounting and Finance Webinar Series.

Webinar Description:
A utility’s line extension policy determines the amount the utility would pay to extend services to new customers. A properly designed policy helps ensure growth is good for all ratepayers and the utility contributes appropriate amounts to extend services. 

Often line extension policies are determined through review of similar policies of nearby utilities and not on the actual costs of extending new services. Policies may result in growth that increases rates for existing ratepayers or may unfairly burden new customers, thereby limiting the utility’s ability to grow. This webinar will cover alternative line extension polices and methods to identify the maximum contribution a utility should incur for a new service.

Specific topics will include:

  • Reviewing alternative line extension methodologies
  • Assessing the risks of extending service to different types of customers
  • How line extensions for subdivisions and developers differ from extensions to a residential home
  • Determining the value a customer will provide the utility
  • How an upgrade of service can be considered under line extension contributions.

Speaker: Mark Beauchamp, CPA, CMA, MBA, President, Utility Financial Solutions, Holland, Mich.

Registration Information

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    Register now for this webinar.
  • The 7-part series (one free webinar): $535 for APPA members; $1,075 for nonmembers
    Click here to register for the series.

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    CPE Field of Study: Specialized Knowledge & Applications
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