New line extension policy to foster development

New Heartland REC members as well as those expanding their service can take advantage of a new line extension policy designed to encourage rural development and serve as a fair and consistent method of extending electric distribution lines.
The new line extension policy includes provisions for applicants to make an engineering deposit when requesting work, ($250 for residential applications, $350 for those in General Commercial classes) and Heartland REC will develop a cost estimate, which is to be paid before work on the project begins. Additional costs may be levied if difficult or unforeseen conditions warrant.
Under the new policy, Heartland REC will frequently share in the line extension costs of construction, up to a maximum amount, based on the type of service. Those line extension costs not shared by HREC (and in excess of the maximum amount) will be the responsibility of the member.
Permanent services (buildings with foundations and a well or water system) will qualify for 100 percent contribution by HREC with a maximum contribution of $2,000. The maximum contribution is raised to $3,000 if the facility is a total electric facility.
Small services such as barns, signs, shops, outbuildings, and others (as determined by HREC) qualify for 50 percent contribution by HREC with a maximum contribution of $1,000.
Small commercial services of 30kW and smaller qualify for a 50 percent contribution of up to $2,000.
Mobile home courts, RVs and RV parks, and home developments will not qualify for cost sharing funds from HREC.
Those requesting temporary service will need to pay equipment, installation and removal expenses in advance.
Line extensions to serve large commercial and industrial facilities will require an administrative review and a special service agreement with the applicant.
The engineering deposit will be applied toward the contribution in aid of construction at the time the line extension project is constructed, or toward any balance due to Heartland REC. If the project is canceled or inactive for more than 12 months, Heartland REC will close the request and credit the engineering deposit against the accumulated costs of the project.
The new line extension policy also spells out easement and right-of-way clearing details, and provides a method whereby those who pay for a line extension may be eligible for line extension obligation refunds when additional new line extensions connect to their project within five years.

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