Sec. 28-589. - Construction or extension of mains or services; incentive programs.
(a) The Director shall determine when gas mains or services are to be constructed or extended within or without the corporate City limits. Upon application of an owner or occupant for such an extension, the estimated net revenue reasonably expected to accrue to the City from such construction in each specific instance and the estimated cost of making the extension shall be calculated by the Director using the construction schedule developed by the Director. The Director annually shall determine construction costs and annually shall develop and publish a schedule of fees. The Director shall review market conditions at least annually and establish a period of time for the calculation of estimated revenue. If the estimated net revenue for such period is equal to or exceeds the estimated cost of the extension, the extension may be made at the expense of the City. If the estimated net revenue is less than the estimated cost of the extension, the Director may enter into an agreement to construct the extension, provided that the owner or occupant of premises to be served thereby shall deposit with the Director a sum of money equal to the amount by which the estimated cost of such construction or extension exceeds the estimated net revenue reasonably to be expected during the applicable period. Such sums shall be paid into and held in a special account of the gas utility, upon the terms and conditions in this Chapter. The Director shall bill the fee to the owner or occupant, and the owner or occupant so billed shall pay the City the billed amount. The Director may receive installment payments as specified in the rules and regulations.
(b) The Director may extend gas mains or services in areas where, in the Director's opinion, potential development will provide future profitable gas sales and where the requirements set forth in Subsection (a) of this section are not applicable due to the method of development of the property. The Director may enter into agreements to construct such extensions in order to protect the utility's revenue requirements.
(c) The Director may implement an incentive rebate program for energy audits, the installation of energy efficient natural gas equipment, insulation and other conservation measures. All existing gas utility customers who are located on existing gas mains shall be eligible for the program. The incentive rebate program shall be contingent on the availability of funding. The Director shall promulgate rules and regulations to implement the incentive rebate program in accordance with this subsection.
(d) The Director shall implement a gas air conditioning incentive program for the installation and operation of gas air conditioning equipment. Pursuant to the program, the Director may enter into agreements to make capital contributions toward the initial installation of gas air conditioning equipment or the initial conversion of air conditioning equipment to gas fuel. The Director may recover capital contributions made pursuant to the program through surcharges to the customer's gas utility bill. The program's capital contributions shall be funded from monies budgeted for gas main extensions. The Director shall promulgate rules and regulations to implement the program in accordance with this subsection. Such rules and regulations and any agreement entered into pursuant to this subsection shall meet the following requirements:
(1) The gas air conditioning incentive program shall be implemented in a manner to safeguard the program's cost justification and shall result in a reasonable rate of return to the gas utility over the life of the gas air conditioning equipment.
(2) The gas air conditioning incentive program shall be implemented in a manner to minimize the potential for placing private businesses at an undue competitive disadvantage.
(3) The capital contributions advanced by the gas utility pursuant to the gas air conditioning incentive program shall be adequately secured.
(4) The gas air conditioning incentive program shall be implemented in a nondiscriminatory manner.
(e) The Director shall implement a load management incentive program to retain or obtain loads that promote more efficient use of gas supply and distribution of resources. Pursuant to the program, the Director may enter into agreements to make capital contributions toward the initial installation of efficient gas fired heating or air conditioning equipment or the conversion of existing gas fired heating or air conditioning equipment to more efficient gas fired heating or air conditioning equipment, in applications serving multifamily residential facilities. The Director shall enter into any such agreement only if the Director documents and certifies that the incentive is required in order to retain or obtain the targeted load. The program's capital contributions shall be funded from monies budgeted for gas main extensions. The Director shall promulgate rules and regulations to implement the program in accordance with this subsection. Such rules and regulations shall establish the maximum capital expenditures allowed per qualifying multifamily residential facility and per dwelling unit and shall meet the following requirements:
(1) The load management incentive program shall be implemented in a manner to safeguard the program's cost justification and shall result in a reasonable rate of return to the gas utility over the life of the gas equipment.
(2) The load management incentive program shall be implemented in a manner to improve the gas utility's load factor, to prevent a deterioration of the gas utility's load factor, or to absorb unused capacity or maintain existing loads for the purpose of reducing unit costs.
(3) The capital contributions advanced by the gas utility pursuant to the load management incentive program shall be adequately secured.
(4) The load management incentive program shall be implemented in a manner to minimize the potential for placing private businesses at an undue competitive disadvantage.
(5) The load management incentive program shall apply only to equipment that has energy efficiency ratings which meet or exceed Federal and State standards.
(Code 1993, § 29-26; Code 2004, § 106-126; Code 2015, § 28-110; Code 2020, § 28-110; Ord. No. 2010-225-210, § 1, 11-22-2010; Ord. No. 2014-16-25, § 1, 2-24-2014)