service lines, and the manner in which the costs will be
recovered through the distribution system extension charge.
(2) Testimony, affidavits, exhibits or other evidence
that demonstrates that a distribution system extension charge
is in the public interest and will facilitate economically
feasible extensions to serve an unserved or underserved area
without unreasonably burdening existing customers of the
natural gas distribution company. A distribution system
expansion charge shall be deemed to facilitate economically
feasible extensions when testimony, affidavits, exhibits or
other evidence demonstrate that a project would not be
constructed without the use of the charge.
(3) The establishment of a customer contribution amount
above which some or all of the costs are to be recovered
through the distribution system extension charge. The
following apply:
(i) A residential customer with a gross monthly
household income level at or below 250% of the Federal
poverty level shall not be required to pay a customer
contribution amount. The costs otherwise payable by the
residential customer shall be deemed uneconomic costs and
recovered through the distribution system extension
charge.
(ii) A customer contribution amount may be paid by a
residential customer, at the customer's option, through a
one-time lump sum payment or in accordance with a
provision in a natural gas company's commission-approved
tariff which provides for incremental payments designed
to spread payment of a customer contribution amount over
a fixed time period.
(c) Extensions costs.--As a part of the initial tariff under
subsection (b), a natural gas distribution company may propose
any of the following:
(1) The establishment of a standard per-mile extension
cost for all extension projects under this mechanism, with
costs in excess of the standard to be recovered through the
distribution system extension charge.
(2) Other mechanisms consistent with the public interest
and the policies specified under this section.
(d) Hearing.--After the filing of a petition under
subsection (b), the commission shall, after notice and
opportunity to be heard, approve, modify or reject the
distribution system extension charge and initial tariff. The
commission shall hold evidentiary and public input hearings as
necessary to review the petition or subsequent filings under the
approved tariff.
(e) Limitation.--The distribution system extension charge
may not exceed 1.5% of the amount billed to customers under the
applicable distribution rates of the natural gas distribution
company.
(f) Expiration.--This section shall expire December 31,
2018/90AJB/HB0107A07830 - 2 -
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