Line Extension

(a)A utility shall have tariffs which set out its line extension policies, procedures, and conditions.#

(b)In its tariff a utility shall include the following provisions for gas main extensions and service lateral extensions from its distribution system:#

(I)the terms and conditions, by customer class, under which an extension will be made;#

(II)provisions requiring the utility to provide to a customer or to a potential customer, upon request, service lateral connection information necessary to allow the customer's or potential customer's facilities to be connected to the utility's system;#

(III)provisions requiring the utility to exercise due diligence in providing the customer or potential customer with an estimate of the anticipated cost of a connection or extension; and#

(IV)provisions addressing steps to ameliorate the rate and service impact upon existing customers, including stating in the tariff the procedures by which future customers would share costs incurred by the initial or existing customers served by a connection or extension (as, for example, by including the procedures by which a refund of customer connection or extension payments would be made when appropriate).#

(c)Line extension policies, procedures, and conditions shall be based on the principle that the connecting customer pays its share of the estimated full incremental cost of growth, including any costs associated with increases in design peak demand.#

(d)Line extension allowances shall be updated pursuant to paragraph 4210(c) in a base rate proceeding, or in a separately filed application, as required, but should be implemented no later than December 31, 2024. If a utility utilizes standardized costs in calculating one or more portions of its line extension policies, the standardized costs must be updated in a base rate proceeding, utilizing the average actual cost across the applicable customer class and line extension type for the most recent consecutive 12-month period for which compiled cost data is available at the time it initiates a base rate proceeding. Exemptions from updated line extension allowances and standardized costs shall not extend to applications for line extensions submitted after May 1,2023, unless otherwise ordered by the Commission.#

(e)Line extension policies, procedures, and conditions shall generally align with the greenhouse gas emission reduction goals established in § 25-7-102(2)(g), C.R.S.#