40-347

40-347. Establishment of conversion costs;
apportionment of costs; method of payment

A. The order authorizing the establishment of the underground conversion service
area shall authorize each public service corporation or public agency whose overhead
electric or communication facilities are to be converted to charge the underground
conversion costs to each lot or parcel of real property within the underground conversion
service area. The underground conversion costs shall be in an amount sufficient to repay
the public service corporation or public agency for the following:

1. The remaining undepreciated original costs of the existing overhead electric and
communication facilities to be removed as determined in accordance with the uniform
system of accounts applicable to the public service corporation or public agency.

2. The actual costs of removing such overhead electric and communication
facilities, less the salvage value of the facilities removed.

3. The contribution in aid of construction which the public service corporation or
public agency would require under its rules and regulations applicable to underground
conversion service areas.

4. If not paid in full as provided in section 40-348, the actual cost of converting
to underground the facilities from the public place to the point of delivery on the lot
or parcel owned by each owner receiving service, in the case of an electric public
service corporation or public agency, or to the connection point within the house or
structures, in the case of a communication corporation, less any credit which may be
given such owner under the line extension policy of the public service corporation or
public agency then in existence.

5. If property belonging to the United States, this state, county, city, school
district or any other political subdivision or institution of the state or county is
included in the underground conversion service area, and they do not voluntarily assume
such costs, the underground conversion cost applicable to such property shall be charged
pro rata against the remaining property included within the underground conversion
service area.

B. The cost incurred in placing underground the facilities in public places shall
be apportioned among the owners of property within the area on the basis of relative size
of each parcel by the corporation commission, the board of supervisors or the city or
town council. The underground conversion cost, as determined by the method prescribed in
subsection A shall not exceed the estimated costs indicated in the joint report prepared
by the public service corporation or public agency pursuant to subsection D of section
40-342 and, may be paid in cash by the property owners within sixty days from the date
the overhead facilities are removed from public places, or may be paid by a uniform plan
applicable to all property owners not paying within the sixty-day period in equal
periodic installments over a reasonable period of time, not exceeding fifteen years, as
established by the corporation commission, the board of supervisors or the city or town
council, together with interest at a rate to be determined by the corporation commission,
the board of supervisors or the city or town council but not to exceed eight per cent per
annum.

C. If funds become available from other public or private sources to pay all or any
part of the underground conversion costs, any such funds shall be applied on a pro rata
basis to reduce the underground conversion cost charged against each parcel or lot.

D. Notwithstanding the provisions of subsection B of this section, the public
service corporation or public agency serving such area may by agreement with all the
owners of the property in an underground conversion service area provide for
reimbursement to it of the cost of such conversion on a different basis as to payment or
security than that set out by the terms of this article.