Hi all,
I recently accepted a position at a local company within the utility industry. As such, I can no longer function as a Dry Utility Consultant. So, this blog will no longer be updated. I sincerely appreciate everyone’s comments and interest over the past few years. Now, I’m on a new path and have left my consulting days behind me. The future looks bright once again. I hope yours does as well.
Drop me a note to say hello if you get a chance.
Thanks again!
Sincerely,
John Mole
Hi all,
Here’s a quick update on an issue that will affect every home-builder or developer in Southern California. The CPUC approved SCE’s Above Ground Equipment advice filing on April 22nd of this year. This new initiative becomes effective on August 2, 2010.
What it means to you: Basically, for any new projects SCE will be designing and installing above-ground structures as a preference in public streets, and as a requirement on private property. The applicant will no longer have the option to pay “Added Facilities” charges for Burd transformers or other underground equipment on private property.
Here is an excerpt from a recent SCE newsletter describing the initiative: “This new policy is limited to equipment installations on private property. In the public right of way, or public property, SCE’s standard design preference will be to incorporate above-ground equipment subject to review by the local municipality. Any customer requesting new facilities, or in some cases expanding existing facilities will be required to have their equipment on private property installed above-ground where it is technically feasible to do so. The reason for this change is to help SCE improve service reliability, provide safety benefits for SCE employees and customers, and protect the environment.”
I can see a storm brewing as a result of this resolution. I believe SCE has the best intentions on this one…safety, easier maintenance; but some cities do not want above ground equipment. I can think of several…Fontana, Inglewood, Rancho Cucamonga to name a few. As a Utility Consultant working for builders in these and other cities, I’m expecting some added work in the form of meetings/negotiations between SCE and city officials.
As long as this new requirement is accounted for in early planning, the issue can be successfully mitigated and shouldn’t adversely affect overall project success. As always, thanks for reading. Please don’t hesitate to contact me should you have any questions on this or any other dry utility issue.
John Mole – President
Utility Planners, Inc.
For the next several weeks, I thought I would do a series on SCE’s Tariff Rules. My intention is to go through all of them and pick out some interesting bits from each. Of course, what is interesting to me as a dry utility consultant may not be interesting to all. Read it anyway, maybe we’ll both learn something in this process.
Rule 1: Definitions
For the purpose of these tariff schedules, the terms and expressions listed below shall have the meanings set forth opposite them:
Applicant: A person or agency requesting SCE to supply or deliver electric service.
JM: Got it, ok next.
Billing Demand: The load or demand used for computing charges under rate schedules based on the size of the customer’s load or demand. It may be the connected load, the measured maximum demand, or a modification of either as provided for by applicable rate schedule.
JM: This is where the demand charge comes from if you are on a GS-2 rate or higher.
Connected Load: The sum of the rated capacities of all of the customer’s equipment that can be connected to SCE’s lines at any one time as more completely described in the rate schedules.
JM: This is basically the total rated capacity (the potential draw) of your electrical system.
Distribution Line Extension: New distribution facilities of SCE that is a continuation of, or branch from, the nearest available existing permanent Distribution Line (including any facility rearrangements and relocations necessary to accommodate the Distribution Line Extension) to the point of connection of the last service. SCE’s Distribution Line Extension includes transmission underbuilds and converting an existing single-phase line to three-phase in order to furnish three-phase service to an Applicant, but excludes service transformers, meters and services.
JM: This is what utility consulting is all about, new distribution to feed a new development.
General Service: Service to any lighting or power installation except those eligible for service on single-family and multifamily domestic, street lighting, outdoor area lighting, traffic control, resale, or standby schedules. No customer for whom a single-family or multifamily schedule is applicable may transfer to or newly take service under a general service schedule. Domestic service which is on a separate meter from a single-family or multifamily dwelling shall be served under a general service schedule.
JM: General Service schedule is where GS-1, GS-2 come from. Those are rates for general service customers.
Point of Delivery: The point where conductors of SCE are connected to the conductors of the customer, regardless of the location of SCE’s meters or transformers. SCE conductors may be owned, leased, or under license by SCE, and the conductors of the customer may be owned, leased, or under license by the customer.
Pull Box: An enclosure for joining conductors which also provides by its size, arrangement, and location the necessary facilities for pulling the conductors into place. This term as used here includes structures also known as “manhole,” “hand hole,” and “switch board pull section.”
JM: Sometimes these are inter-mixed with the term “Splice Boxes”. It’s important in the field to describe the structures we are talking about to make sure all involved parties are on the same page and talking about the same system elements. Give a location, or structure number to be sure.
Rate Charges: Charges in the rate schedules may include the following:
Customer Charge: That portion of the charge for service which is a fixed amount without regard to connected load, demand, or energy consumption in accordance with the rate schedule.
Demand Charge: That portion of the charge for service which varies with the billing demand in accordance with the rate schedule.
Energy Charge: That portion of the charge for service which varies with the quantity of energy consumed in accordance with the rate schedule.
Minimum Charge: The least amount for which service will be rendered in accordance with the rate schedule.
Service Charge: That portion of the charge for service which is a fixed amount based on connected load in accordance with the rate schedule.
Standby Charge: That portion of the charge for standby service which is a fixed amount based on the maximum load SCE stands ready to supply in accordance with the rate schedule.
Well, I think that’s enough for this post. The actual definition list is 14 pages long. I tried to include some that I think are relevant to the construction industry. There are others that I overlooked, but I just don’t have time to comment on all of them. I hope this is informative and helpful.
Thanks for reading.
John Mole – President
Utility Planners, Inc.
SCE anounced yesterday the order of solar panels for a 250 Megawatt rooftop utility project. According to the press release,
“During the next five years, SCE plans to install, own and operate 250 megawatts of solar generating capacity, most of it on otherwise unused large warehouse rooftops. The large one- to two-million-watt solar installations will be connected directly to neighborhood distribution circuits where the leased rooftops are located.” (edison.com/pressroom)
I love hearing about these types of projects where a previously untapped resource (in this case rooftops) is utilized in an innovative way to generate electricity. There isn’t a need for a new generation plant, just install solar panels on existing rooftops…great! It seems like we may have reached a pivotal point with solar panel technology.
“The SCE program reflects the growing value of advanced solar panel technology as a reliable, cost-effective energy resource that can be installed quickly, anywhere and at any scale,” said Howard Wenger, president of SunPower’s utilities and power plant business group. (edison.com/pressroom)
Obviously Mr. Wenger has a vested interest in touting the advances of solar panel technology, but the proof is in the pudding. This project along with a recently approved sister project of another 250 Megawatts make this the largest U.S. solar development ever…as Bill & Ted might say “Whoa!” (obscure movie reference…please see Bill & Ted’s Excellent Adventure at your earliest convenience) 
Is it too late to get into the solar panel business? Or perhaps, the solar panel community needs a good utility consultant…you know my number.
As always, thanks for reading.
John Mole – President
Utility Planners, Inc.
According to an article in the Press Enterprise today, the CA State Assembly passed legislation this week that would make forgiven debt tax exempt. It still must pass the senate, which is expected to vote tomorrow.
I was surprised to find out that forgiven debt isn’t exempt currently in CA. I know it is on the Federal side and I guess I assumed (much like many other folks out there I’m sure…there I go assuming again) that both taxing agencies were on the same page. Apparently, while the Federal exemption is good through 2012, the state’s version expired at the end of 2008.
Fortunately, my wife and I didn’t go through the trauma of a foreclosure or short sale in 2009, but I know others who did. I’m imagining the shock of thinking things are finally getting back on track financially. I’ve embarked on a fresh start…sure a few steps backward, but the damage is repairable both to my credit and my psyche; only to find out that my whole basis for moving forward (and hopefully avoiding bankruptcy)…tax exemption…was false. Wow, talk about getting kicked when you’re down.
If this legislation doesn’t pass, we’ll be seeing an increase in bankruptcies for sure. Let’s think positively though…I’m sure the good men and women in the CA State Senate already understand the importance of this legislation to the many families in CA undergoing such financial hardship and will act accordingly…I hope
This should be a no-brainer as helping stabilize these families in this stressful time should in turn help shore up the state’s economy as a whole. Some day soon, I expect my phone to be ringing again with developers, home builders and prospective investors. The voice on the other end will undoubtebly be seeking the comments and expertise of an experienced Utility Consultant. When that day comes, I’m going to write about it! Oh, my phone is ringing…i’ve got to wrap this up; “why yes Mr. Developer, I can handle your new shopping mall with 3,000,000 condos attached.”
As always thanks for reading.
John Mole – President
Utility Planners, Inc.
Utility Planners, Inc. (my company) has just announced a new service for it’s customers. Effective immediately, UPI is offering a thorough study to determine the individual dry utility contacts on a given construction project. This may seem like a simple task, but if you’ve ever had to track down the correct contact person, you know how difficult it can be. Multiply that by four agencies and you’ll understand why this service is needed.
In addition to the primary point of contact, we will also confirm the next best point of contact (often a support or administrative type position), and the direct supervisory contact (just in case).
Once confirmed, we’ll send you a report detailing three contacts per utility agency in MS Word. That way, you’ll be able to edit the document further, or cut & paste into your own format.
We are a utility consulting firm. We know the right questions to ask in order to verify who at the utility agency will be handling your requests. Let us put our expertise to work on your behalf. Start your next project on the right foot, with the correct information. Follow this link to place your order.
As always, thanks for reading.
John Mole – President
Utility Planners, Inc.
From an article on the Press Enterprise site last week, apparently the senate has reached a loose agreement on this issue as of Wednesday 10/28/09. Senators have come up with a compromise to extend the First Time Home Buyer tax credit until April 30 of 2010. The measure has added a $6500 credit for returning buyers who have owned their existing homes at least five years. As well, the credit would be available for individuals earning up to $125,000, and couples earning $250,000; up from $75,000 and $150,000 respectively. Of course, this measure must still pass in the Senate and the House, but it’s a big step in the right direction.
The current measure seems to have had a tremendous impact on the local market here in Southern California. Although it hasn’t resulted in a lot of new work for Dry Utility Consultants such as myself just yet, I can see how builders are working through their inventory of developed lots. This is very encouraging because in order for my company to get back to work in our prior capacity, builders and developers have to start planning new projects on fresh land.
The fact that at the peak, there was so much planning and design activity has made this recession that much deaper for the engineering community. The well of planned and designed projects is still pretty deep. So you see, builders must first get through the already developed lots, then start on the projects that are already planned and approved, then someday in the distant future will begin to plan and design again…I think…I hope
In the meantime, I’m honing my blog writing skills and practicing under-water basket weaving…
As always, thanks for reading.
John Mole – President
Utility Planners, Inc.
Instead of pulling from the news this time, I thought I would offer a brief description of the CPUC rule that governs overhead to underground conversion projects in Southern California Edison territory. Rule 20 has three parts, Rule 20A, Rule 20B, and Rule 20C.
Rule 20A is typically for public projects where the applicant is a city or other municipality. When a city wants to convert overhead lines to underground, they must meet all SCE’s criteria (follow this link to view SCE’s Tariff’s including Rule 20). Some requirements are:
1) The project must be in the public’s interest.
2) The municipality must have an underground ordinance in effect.
3) The project must be at least one block or 600 feet in length.
Once the requirements have been met, SCE may be able to access ear-marked funds for just such projects potentially covering all costs associated with the conversion. Any municipality should be aware of this rule and it’s implications on roadway project costs.
Rule 20B is somewhat rare in the world of private development. Under this rule, SCE charges the applicant (typically a private developer or builder) only the difference between an equivalent new overhead system and the new proposed underground system. This type of project is sought after due to the way SCE charges for the system. The net result is a cheaper project when compared to a Rule 20C. The following are some of the requirements (please contact a Dry Utility Consultant to discuss specifics):
1) The conversion scope must include at least one block or 600 feet on both sides of the street. This requirement is why this type is rare.
2) The applicant must install and deed ownership to SCE the entire underground substructure system…vaults, ducts, manholes, etc. as required and per SCE’s specifications.
3) Suitable legislation allowing SCE to discontinue its overhead service must be in effect.
The last type of conversion is also the most common. It is known as Rule 20C and is also the most expensive. The rule pretty much covers every situation not covered by either A or B above. The only monetary break the applicant gets is that SCE will deduct the salvage value (less depreciation) of the existing overhead from the cost of the new underground system. Otherwise, all costs are charged to the developer. In addition, the applicant still must install all the sub-structures and deed them to SCE.
In my experience, most projects are Rule 20C’s, but occasionally you may have the opportunity to break a Rule 20 into sections so one part can be a 20B and one part a 20C. SCE is typically accommodating with respect to such requests, but won’t always come up with this solution on their own. Hiring a qualified consultant to assist in the planning process can literally save thousands on a typical Rule 20 project.
I hope this has been informative and will help you avoid some common pitfalls on your next project. As always, thanks for reading!
John Mole – President
Utility Planners, Inc.
In case you haven’t heard this news from your local SCE planner; the per meter allowance for Permanent Residential Service has increased from $1951 to $2,322. This is more good news for local home-builders. It wasn’t more than five years ago that the allowance was $1247 per unit. This increase is most welcome. Hopefully, the new home-buyer tax credit will be extended into next year. These two incentives should help to keep this current sales rally going strong.
Additionally, the ITCC tax rate has been lowered for all of 2009 from 35% to 22%. This tax applies to virtually every privately-funded project whether it be housing, commercial, or infrastructure. If you are being charged ITCC on a project that is using public funds for a public roadway, contact a Dry Utility Consultant to discuss your situation. You may be entitled to at least an invoice revision from SCE to exclude the ITCC altogether.
If you have any questions about ITCC, residential allowances, or any other utility related issue, please send me an e-mail. I would be happy to help! As always, thanks for reading.
John Mole – President
Utility Planners, Inc.
Hi all,
The Press-Enterprise reported a 36% increase of Sales Contracts for new homes in the first quarter of 2009 compared to the previous quarter. Sounds like great news…right? Well here is some additional information to temper the optimism. Sales were still 43% below the first quarter of 2008 (according to the article). As well, and more alarming is the expectation that there will be another wave of foreclosures hitting the market in the near future.
National lenders had been holding off on new foreclosures due to a temporary moratorium that has now been lifted. It seems that the first quarter of 2009 will be more of an exception than the new rule in terms of new home sales. I’ve personally seen a neighbor who had been holding on and hoping for a bank modification to their mortgage. Much to their surprise the bank decided (at the last moment in their view) to proceed with the foreclosure. They have been forced out and I expect their house to hit the market in the next 30 days. I wonder how many others are in the same boat.
As a Dry Utility Consultant working for residential home builders in Southern California, any increase in sales is cause for optimism. However, in order for business to pick up for me, the builders have to work through their inventory of not only finished houses, but also improved lots. Work won’t really pick up for me and others like me until builders start building on raw land again…2010? Dare to dream
As always, thanks for reading.
John Mole – President
Utility Planners, Inc.
