Terms and Conditions - Rappahannock Electric Cooperative

Rappahannock Electric Cooperative
overall project’s annual refunds can never exceed the
amount paid prior to construction by the Applicant/
Developer, less any contribution-in-aid of construction paid
in accordance with VI, E. 4.
b. In lieu of the above mentioned payment, the
Applicant/Developer may pay a contribution-in-aid of
construction in the amount of the difference between the
total cost of the project and the amount equal to two (2)
times the average annual residential distribution delivery
revenue multiplied by the total number of residential services
projected to be connected within the development. In
addition to this payment, the Applicant/Developer will be
asked to secure and provide an approved irrevocable letter
of credit, performance surety bond, or other form of
guarantee acceptable to the Cooperative, in an amount
equal to two (2) times the average annual distribution
delivery revenue multiplied by the total number of residential
services projected to be connected within the development.
This financial surety will have a total project cost recovery
period of no more than three (3) years.
7. If the Applicant/Developer requests service to a permanent, bona
fide residence within the subdivision, the Cooperative shall invest
capital towards the secondary service facilities up to four (4) times
the average annual distribution delivery revenue.
8. If the Applicant/Developer requests service to a permanent, bona
fide residence within a subdivision which had primary facilities
installed prior to (approval date of 2009 Rate Case), the
Cooperative shall invest capital towards services which require only
secondary service facilities up to four (4) times the average annual
distribution delivery revenue. Within these types of subdivisions if
an Applicant/Developer requests service to a permanent bona fide
residence which requires primary and secondary service facilities,
the Cooperative shall invest capital towards these facilities up to six
(6) times the annual residential distribution delivery revenue.
F. Commercial, Industrial, and Other
1. When service is requested to a permanent, bona fide commercial,
industrial, or other application the Cooperative will invest capital
towards the line extension up to two (2) times the estimated annual
distribution delivery revenue from said establishment. When the
total estimated cost of extending service exceeds two (2) times the
estimated annual distribution delivery revenue, all costs in excess
of that amount shall be paid by the Applicant as a contribution-inaid
of construction. Total costs include the costs of both primary
and secondary line facilities. The Cooperative reserves the right to
require additional financial and/or contractual agreements based on
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