LINE EXTENSION POLICY UPDATES

When an individual or a business becomes a White River Valley Electric Cooperative member, they become part owner in our nonprofit organization. We are committed to meeting members’ expectations while providing reliable electric service at a competitive price. To accomplish this goal - we must continually evaluate our plant costs, or what other industries call their capital costs, for future expansion while continuing to ensure safe, reliable, and affordable service to our members.

WRVEC’s Line Extension Policy sets the standard for establishing new electric services for our members. We continually evaluate factors like our utility plant, service capacity, construction costs, and margins to set this policy. Currently, the average time it takes to recover costs for installing new services is longer than the depreciation schedule of our plant.

After much consideration, we have determined that the current policy no longer adequately supports our expansion demands as it once did when established in 2007. The Line Extension Policy has been revised and changes will take effect on March 1, 2020. Previous pricing included a linear foot model and per pole and/or structure charges. The revision will be consistent in all single and three-phase services, reflecting the linear foot model across the board.

The policy is not meant to be a revenue generator nor does it cover 100 percent of costs. It is simply an aid to construction so that area growth doesn’t equate higher rates or that current members subsidize new services. Our due diligence will keep costs at a manageable level, and align us with neighboring utilities and others across the state. The new policy will ensure that the Cooperative recovers investments within the depreciated costs, extends service to any unserved persons within our service territory, and continues to deliver electricity at an affordable rate.

You can find the updated Line Extension Policy under the Electric Services section of our website: https://www.whiteriver.org/electric-services/membership/rates/