(A) Contracts; exception.
(1) Contracts for all residential service and non-residential service, under rate codes SGS and LGS with less than 20 kWD of connected load, shall be for no definite term, other than what is called for in the rate, unless a line extension agreement is also involved. Contracts for all other customers shall be categorized as follows:
(a) Standard term (three years or greater);
(b) Short term (less than three years) / temporary service;
(c) Special contract.
(2) An exception will be made for those agencies of government that, ordinarily, have prospect of using electric service at the premises for three years or more, but are limited (by statute or by appropriation of funds) to making regularly recurring short term contracts (such as for not more than one year, and the like). Where the authority of such governmental agencies is so limited, contracts may be made for a period of less than three years without being classified as a short term contract or special contract. Such initial term, and subsequent renewals, shall be in accordance with the fullest limit the agency’s authority may allow. Where, however, there is no prospect that an agency or government will use electric service at the premises three years or more, the contract will only be made under the conditions of a short term contract or a special contract.
(B) Standard term contract. The initial term shall begin when Avilla first supplies electricity under the contract, unless some other beginning date is stated specifically in the contract. At the expiration of the initial term, the contract thereafter automatically renew for successive terms of one year each unless one party gives the other party written notice of termination at least 60 days in advance of the termination of the then current term.
(C) Short term contract/temporary service.
(1) Service for a term less than three years and for temporary service will be supplied under the conditions of a short term contract, which are:
(a) That Avilla has adequate transmission and distribution facilities available.
(b) If any extension of facilities is required, customer shall make advance deposit of the applicable amount as defined herein.
(c) Service bills and the conditions for any such supply will be according to rate code SGS, LGS, or P.
(2) Service to mobile homes, house trailers, mobile field offices, sales trailers, service trailer, portable tool, and the like shall normally be considered as temporary in character and nature. Service to such facilities shall be classified as temporary service and any such rules and regulations shall apply which, in general, require that the applicant pay the cost of establishing and disconnecting the service, including construction and dismantling of service facilities, as well as the cost of energy at the applicable rate and customer charges.
(D) Special contracts.
(1) A special contract must be made in case of unusual capacity requirements or load characteristics, unusual investment required or other abnormal condition. Such contract terms shall be commensurate with Avilla’s investment, and like conditions, and shall be subject to the approval of Avilla.
(2) A special contract may be required by Avilla before it will make line extensions and/or upgrades in situations involving transformers in excess of 100 KVA single phase (or 300 KVA total) or where unusually large or expensive switching or control equipment will be required. Additionally, customers that may have an uncertain or insufficient return on Avilla’s projected investment may warrant a special contract. Such situations may include providing electrical supply to welding, x-ray or other apparatus that may have inherently low load-factor and may require relatively high investment per unit of capacity.
(E) Change of contract term.
(1) In the event customer’s use of energy changes from the use contemplated at the time of malting the contract, so that it is in the interest of both customer and Avilla to do so, either or both the term of the service contract may be changed to another term conforming to Avilla’s Rates, Rules & Regulations, provided all the conditions of initial service contract have been fulfilled as of the date the change is requested.
(2) The effective date of the contract change shall be the date it is executed, unless another date is stated within the contract.
(F) Assignment of contract. The benefit and obligation of any service contract (except budget billing) shall begin when Avilla commences to supply electrical service and shall inure to the benefit of and be binding upon the respective heirs, personal representatives, successors and assigns of the original parties thereto; provided that no assignment shall be made by customer without first obtaining Avilla’s prior written consent.
(Ord. 1406-6-02, passed 6-18-2002)