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CHAPPELL HILL WATER SUPPLY CORPORATION Water Tariff

SECTION 3.0-SERVICE EXTENSION POLICY

This Section applies to all Service Applicants and Developers whose request for water   service involves an extension of water lines from the existing distribution system.

 The Corporation's primary commitment is to those owners and users of Corporation's  facilities whose properties are currently served by, or are immediately  accessible to, the Corporation's existing facilities.  However, the Corporation is willing to consider extending the water lines under certain limited conditions.

 For purposes of this Section:

1        “Service Applicant” means a person other than a “developer” who applies for retail water service.

2        “Developer” means a person who subdivides land or requests more than two water connections on a single continguous tract of land.

3        “Subdivision” means the division of a tract of land into two or more lots, sites, or other divisions for the purpose, whether immediate or future, of sale or building development where the division is defined as:

     a.  all such divisions where one or more of the resulting tracts is than 5  acres.

     b.  all such divisions where a new road is required regardless of the size of                                      any  or  all tracts.

4        “Commercial”, “Institutional”, or “Industrial”.  For purposes of determining the connection costs that Service Applicants in these categories shall pay, “Commercial”, “Institutional”, or “Industrial” applicants with service demands greater than residential customers shall be treated as “Developers”.

Section 3.01 -  Residential Service Applicants (Non-subdivision)

The Corporation is not required to extend service to any applicant outside of its certified            service area and will only do so under terms and conditions mutually agreeable to the            Corporation and the applicant, in compliance with TCEQ rules and policies, and, if necessary, upon extension of the Corporation's certified service area boundaries by the TCEQ.

Within the Corporation's certificated area, the extension of the Corporation's system can  be            considered when proposed by individual lot owners and when such lot owners agreed to pay all of the costs to the Corporation for such extension.  In some cases, this may require the Applicant to pay for capital improvements to the system, in whole or in  part.

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             CHAPPELL HILL WATER SUPPLY CORPORATION      Water Tariff                  

SECTION 3.0 – SERVICE EXTENSION POLICY (Continued)

After filing a “Preliminary Application for Water Service” and a determination by the  Corporation that the extension is feasible, the applicant shall complete and sign the “Service Application Agreement” and will be given an itemized statement of the costs, options such as rebates to the customer, sharing of construction costs between the utility and the customer, or sharing of costs between the customer and other applicants prior to beginning construction.  The Membership fee and tap fees as listed in the Water Tariff must be paid in full prior to the beginning of construction.  In addition, up to 50% deposit of the estimated construction costs will be required prior to construction.  The Water Corporation may require partial payments at intervals during the construction period.  Any Impact fees and Buy-In fees as listed in the Water Tariff must be accepted by the Applicant..

Section 3.02 – Costs That Utilities and Service Applicants Shall Bear

Any additional property owner within the extension line and not obtaining water service at the time the line extension is made will pay a pro-rata fee in addition to their normal tap fee based on the length of property frontage to the extension line.  After a period of seven years from the date of the installation of any extension line, there will no longer be a pro-rata charge for any new customer receiving service from the extension line other than the normal tap fee.

Residential customers will be charged  the costs of extending service to their property from the nearest transmission or distribution line.  However, if the customer places unique, non-standard service demands upon the system, the customer may be charged the additional cost of extending service to and throughout their property, including the cost of all necessary supply, pumping, transmission and storage facilities necessary to meet the service demands anticipated to be created by that property.  A request for a one inch meter for a lawn sprinkler system to service a residential lot is not considered non-standard service.

Section 3.03 – Residential (Subdivision)

The Corporation is not required to extend water service within the certificated area to a service applicant in a subdivision if the Corporation documents that the “Developer” of the subdivision has failed to comply with the subdivision service extension policy as set forth in the tariff of the Corporation.

 A residential applicant located in a subdivision must first complete the “Preliminary Application for Water Service”.  After a determination by the Corporation that the applicant is qualified for water service, the applicant will complete and sign the “Standard Service Application and Agreement”.  The applicant must pay the Membership fee and the Tap Fee

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CHAPPELL HILL WATER SUPPLY CORPORATION   Water Tariff

SECTION 3.0 – SERVICE EXTENSION POLICY (Continued)

 (includes setting the meter and meter box and making the connection to the water main) prior to setting the meter.  Any Impact Fees and Buy-in Fees that have been authorized by the Corporation must be accepted by the Applicant and paid prior to installing the meter.