MidAmerican Energy offers contractors the following refund to cover the construction cost of a primary service extension:
Contribution in Aid of Construction
Advance for Construction Refund
- If it's known that other customers will not attach* to the primary line extension during a 10-year period.
- Contribution in Aid of Construction is a nonrefundable payment.
- The surcharge for contributions, which is added to the construction cost after all revenue credits have been applied, is 31.03 percent for electric and 31.03 percent for natural gas.
- If additional customers connect to the primary extension, the contractor will not qualify for reimbursements of those connections.
- When the possibility exists that other customers may attach* to the primary line extension during a 10-year period.
- Advance for Construction is a refundable payment.
- Allows the customer to pay the refundable income tax surcharge amount of 31.03 percent for electric and 31.03 percent for natural gas for the construction cost of the extension.
- A deposit by the customer with the possibility of recovering some or all of the construction cost paid if other customers attach* to the primary extension.
- The refund period lasts for 10 years from the date of the original Advance for Construction payment.
- The amount refunded for each attaching customer will be equal to three times the estimated base revenue of the customer. If the refund would be greater than the original deposit, the amount refunded will be equal to the original deposit.
* For the purposes of these refunds, a new customer will only be considered to have attached to a line extension if the electric service connection is attached directly to a point on the extension. Further extensions of the existing extension do not qualify for refund.