HomeMy WebLinkAbout87- Electric Construction Agreement
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MPCo. 684 7/77 OTHER 0
CONSTRUCTION AGREEMENT
THIS AGREEMENT, made and entered into this ~..3.!l.- day of June , 1987,
by and between THE MONTANA POWER COHPANY (hereinafter called "Company") and the -
City of Bozeman
Of Bozeman , Montana, (hereinafter called "Customer"):
WIT N E SSE T H:
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1. The Company agrees to relocate a distribution line.
facilites to provide service to the above-named customer at corner of Hiqhland
Blvd. and Main St
in accordance with the applicable Rules and Regulations and at rates prescribed by the
Public Service Commission of Montana. These lines and facilities will be located on
right of way provided and initially prepared and cleared as necessary by Customer and ~
at all times shall be and remain the property of the Company.
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II. THE CUSTOMER AGREES:
1. To make a CONTRIBUTION IN AID OF CONSTRUCTION (CIAG) in the sum of
$ 2077.00 . Payment shall be made as follows: in advance of work
beinq done. . It is specifically
understood by the Customer and agreed betweeh the parties that the Company will not
refund any part of this sum.
2. To pay the Company the sum of $ nla , as CUSTOMER ADVANCE for
construction of these lines and facilities. Payment shall be made as follows:
It is agreed that if new customers are permanently connected and served by the
Company from these lines before (Date) nl a , the
Company will determine what refund of said advance, if any, is due the above-named
Customer on the basis of estimated revenues from these new accounts in accordance with
the applicable Rules and Regulations of the Montana Public Service Commission.
The total sum refunded shall not exceed the amount of Customer's Advance for
construction, nor will any refund be made after (Date) nla .
It is specifically understood by Customer and agreed between the parties that any money
not refunded pursuant to the terms of this Agreement will revert to a non-refundable
CIAC and become the property of the Company.
3. To establish load which will generate $ nla EARC.
(Estimated Annual Revenue Credit). The load is planned to consist of
This load will be permanently connected and operating in a normal manner within
approximately nl a days after service is established. Deviations from the'
planned loads referred to above within nla (Months) after service is
established will subject this Agreement to revision of payments, if the changes affect
the calculation of the above stated EARC. In the event of such revision, payment will
be made by the Company or the Customer, as the case may be, within nla days
of such revision.
4. To general conditions and terms as explained on the reverse side of this
page.
IN WITNESS WHEREOF, the parties have signed this Agreement in duplicate on
the date written above.
THE MONTANA POWER COMPANY
(Company)
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MPCo. Work Order No. By b /. , _ -t~L./'~-/- . .,-
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W~ES~C;: <-I~1 (;>
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Clerk of the Commission
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684 7/77 .
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II. GENERAL CONDITIONS
1. All terms, prices and conditions set forth in this Agreement are
subject to changes or additions at any time due to rules, regulations, ordinances,
and laws which may be adopted or enacted by governmental units or agencies.
2. Prior to payment, the prices set forth in this Agreement, are subject
to revision due to changes in labor rates, material costs, or Public Service Commission
Rules and Regulations.
3. The Customer shall pay the costs of moving Company facilities or making
other modifications required to meet city, state, or national codes, should the
Customer cause code violations by his activities after Company facilities are installed.
4. The Customer shall provide termination points for service as specified
by the Company installation standards in effect at the time construction begins.
5. Service is to be established by the Company within a reasonable period
of time after the Customer's equipment passes inspection by the state or local
authorities as required by law.
6. The Company will proceed with the survey, design and conStruction of
its facilities in a normal manner using its existing work force and material supply
sources. All work is to be done in normal working hours and work will be scheduled
by the Company to fit overall efficient workload of Company forces. Availability of
materials, weather conditions, frozen ground, or obtaining permits from governmental
agencies or railroads may cause delays beyond the control of the Company or the Customer.
III. DEFINITIONS
1. ESTIMATED ANNUAL REVENUE CREDIT (EARC)
This is estimated by a representative of the Company in a manner
that it represents the revenue credit that is expected to be
derived annually from permanent loads served by facilities to be
installed under this Agreement.
2. CONTRIBUTION IN AID OF CONSTRUCTION (C.r.A.C.)
A. A non refundable payment made by a Customer which is equal
to the estimated cost difference between underground electric
facilities and overhead electric facilities that would
duplicate, as practical, the underground facilities.
B. A non refundable payment made by a Customer to pay for costs
beyond the allowable revenue credit when there are no more
customers expected to connect to facilities installed by this
Agreement.
3. CUSTOMER ADVANCE
A refundable payment made by a customer to pay for costs beyond
the allowable revenue credit when more Custmers are expected to
connect to facilities installed by this Agreement.
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