.10 Main Extensions.

A. Applications. Applications for extensions of water mains shall be made in writing.

B. Ownership of Extensions. Any facilities installed in connection with the extension of mains shall become the property of the utility.

C. Construction Specifications. The size, type, quality of materials, and their location shall be specified by the utility and the actual construction shall be done by the utility or by a constructing agency acceptable to it.

D. Calculating Length of Extension. In arriving at the length of main extension necessary to render service at any point, the distance from the point to the nearest main shall be considered along lines of proper construction, due consideration being given to the general layout of the system.

E. Electing Alternate Route. When the property of the applicant is located adjacent to a street or highway exceeding 70 feet in width, or a freeway, waterway, or railroad right-of-way, the utility may elect to install a main extension on the same side thereof as the property of the applicant, and the estimated cost in the case may be based on such an extension.

F. Established Grades Required. The utility may not be required to make extensions where grades have not been brought to those established by public authority.

G. Requirements of Public Authorities. When an extension must comply with an ordinance, regulation, or specification of a public authority, the estimated cost of the extension shall be based upon the facilities needed to comply with the requirements.

H. Utility's Portion of Extension. The utility shall extend its water mains to serve new customers, other than subdivisions, housing projects, industrial developments, etc., at its own expense, when the cost of the required total length of main extension is not in excess of three times the estimated annual revenue to be derived from the extension, which amount shall be designated the "allowance."

I. Estimated Annual Revenue. For the purpose of these regulations, the estimated annual revenue for residential service shall be the utility's average annual revenue per residential customer for the prior calendar year, this average to be effective on April 1st and used until the following April 1st. In unusual cases and for other classes of service, the utility may estimate the annual revenue to be derived in each case.

J. Customer's Portion of Extension. If the estimated cost of the required total length of main extension is in excess of the "allowance" for the service connections applied for, the applicant for the service shall be required to advance to the utility before construction is commenced that portion of the estimated cost of the extension over and above the "allowance." The amount of the advance to the utility may not include any costs of increasing the size or capacity of the utility's existing mains or any other facilities used or necessary in connection with the proposed extension, except as provided in §L, of this regulation. If the actual cost of the extension is less than the estimated cost, the utility shall promptly refund to the applicant any overpayment.

K. Division of Customer's Portion of Extension. When more than one applicant is involved and an advance is required in payment for a main extension in excess of the "allowance," the amount of the advance shall be divided equally among the applicants, except that some different allocation may be approved by the utility under special conditions.

L. Extensions to New Subdivisions and other Developments. An applicant for a main extension to serve a new subdivision, tract, housing project, or industrial development shall be required to advance to the utility before construction is commenced the estimated reasonable cost of installation of the mains, from the nearest existing main at least equal in size to the main required to serve the development, including necessary service stubs or service pipelines, fittings, valves, and housings therefor, and including fire hydrants when requested by the applicant or when required by public authority, exclusive of meters. If additional facilities are required specifically to provide supply, storage, or pressure exclusively for the service requested, the cost of the facilities may be included in the advance upon approval by the Commission.

M. Basis For Refunds. For each new customer connected to an extension on which the utility holds refundable deposits, the utility shall refund three times the estimated annual revenue to be derived from the customer. Refunds shall be made within 90 days after the new customer's service is connected and shall be made to the depositors who advanced the money for the extension. If more than one depositor is entitled to receive a refund, the total amount shall be divided in proportion to the amount of the unrefunded advance of each depositor.

N. Disposition of Advances. Advances which may be required from applicants in payment for extensions will be held by the utility without interest. Refunds shall be made in accordance with these regulations and no depositor will have refunded to him an amount in excess of the amount of his advance. Any amount remaining unrefunded at the end of 10 years from the date the advance was received by the utility shall be retained by the utility and transferred to the Contributions in Aid of Construction account.