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11 <br />0 <br />• <br />ORDER NO. PSC -2017 -0283 -TRF -EI <br />DOCKET NO. 20170069 -El <br />PAGE 10 <br />�. DUKE <br />ENERGY. <br />12.05 CONSTRUCTION CONTRACT: <br />(1) GENERAL: <br />SECTION NO.N <br />S90UMLSpmtREVISED SHEET NO. 4.122 <br />CANCELS SOCIHgFM REVISED SHEET NO. t'122 <br />Attachment A <br />Page 4 of 4 <br />Upon acceptance by the Applcantofthe binding cost estimate, the Applicant shall emcute a contract with the <br />Comparry to perform the construction d the underground distribution facilities. The contract shat) specify the <br />type and character of system to be provided: establish the Facility Charge to be paid by Applicant prior to <br />commencement of coresbuction: specify details of mnslmc5en to be performed by Applicant H any,, arch <br />atldiess any other pertinent temp and conditions including those described in Part (4) below. <br />(2) FACILMYCHARGE: <br />Charge= Reniinhhg net book value of ebsdng overhead facAfies to be removed: <br />plus, removal mgt of e)dsbng overhead facilites: <br />minus, salvage value of eAsUng overhead facilities: <br />plus. estimated tonsttc5on cost of undergmund facilites motuding <br />underground service lalerabto residential customers meters rix point of <br />delivery far general service astmers: <br />minus, estimated co stlicbm cost of oveibead facilites including overhead <br />service drops to csbrner a meters: <br />minus, qualifying binding cost estimate fee. <br />lushriinus _ <br />fa. iL^'i Ti" ail' W _fhe net present vale of the fdegde <br />Operational costs differentia inducting storm restoration. <br />3) CONSTRUCT101413YAPPLICANT <br />If agreed upon by both the Applicant and the Comparry, the Applicant may construct or instat pardons of the <br />underground system as long as such v rk meets the Con panl/s engineering and consbuction stxMards. <br />The Company wA own and maintain the completed d 5bribufion facilities upon accepting the system as <br />operational. The type of systam provided wiff be determined by the Company's standards. <br />Any facilities pmided bylhe Applinardvdllbe inspected by Ccmpanyinipecto= prortoaoceptance. Any <br />deficiencies dscovered as a resuh of these inspections WIT be corrected try the Applicant at his sole expense, <br />indudag the casts maned byper(ernrrg the inspediars. Corrections roust be made in a timely manner by <br />the Applm mt ethemise the Comparry hurl undertake the correction and bill the Applicant for all costs of such <br />correction. These costs shall be additional to the original binding estimate. <br />ISSUED BY: Javier J. Portuondo, Director, Rates 8 Regulatory Strategy — FL <br />EFFECTIVE: <br />