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found that the costs of burying distribution lines in newly developed commercial and residential <br />areas is often feasible and cost-effective. All of the Utilities have plans on file with the <br />Commission detailing the terms, conditions, and charges under which they agree to extend <br />distribution service to customer locations. Each utility will place new facilities underground <br />when the additional revenues cover the casts or the cost differential is recovered through a <br />contribution in aid of construction." So basically what he is saying is that the only way that Duke <br />Power is to do this is if it is a contribution in aid of construction and the only entity that Duke <br />Power considers necessary to pay for it is the school system. <br />Scott Gardner said that it is the property owner. The earlier part of that report talked <br />about that it is cost effective to do it inside residential and commercial developments. They are <br />not talking about bulk feeders. When you are talking about bulk feeders, you are talking about <br />the backbone of the system that feeds larger areas down the road. This is relatively <br />inexpensive. <br />Commissioner Gordon asked about the possible route along DOT right-of-way that is in <br />question, and the way it is set up now with water and sewer and for future use. She said the <br />school system might want to build in that area to the west of the school but there would be a <br />power line there under this plan. She asked if they were going to put power lines there, why <br />can't Duke Power put them in some other route. <br />Scott Gardner said that one of the questions that came out of the meeting they had back <br />in April 1995 was "is there a cleaner way to provide service to this pump station". So <br />consideration was given to using a route that Mr. Gardner pointed out on a map. The problem <br />with coming this route was that there a lot of wetlands area and to go overhead will require <br />accessing by Duke Power. They would need to have access by constructing some sort of <br />commercial grade alley way or something that we can use to get trucks in there to set poles and <br />if there is ever damage that they could access quickly for replacement purposes. <br />Dr. McFarley said that the cost for this access road would be around $100,000-150,000 <br />just for the construction and maintenance of the road. <br />Commissioner Gordon said that they need to try and get the DOT right-of-way. She said <br />that the issues are where the line goes and having to pay for it and she thinks Duke should pay <br />for it. <br />Scott Gardner said that the only way for Duke Power to pay for it is to make a <br />contribution to the School District. <br />Scott Gardner said that the only way he can respond to this is that they have a <br />difference of opinion as how we should install, pay for, and regulate the installation of utility <br />lines. <br />Commissioner Halkiotis said that he is quoting from Superintendent Carraway's letter <br />dated September 21, 1St page, last paragraph: "Piedmont Electric has indicated that they can <br />provide underground service within our required time frame at a fraction of the cost that Duke <br />Power is charging because they realize that over the years, they will recoup any investments <br />they make in our properly. With this offer in hand, the district is sending an official letter to Duke <br />Power, asking them to release the territory to Piedmont Electric, a request that is likely to be <br />denied." So he wonders why Duke Power won't let it go to Piedmont Electric since they are <br />willing to provide the service at a fraction of the cost. <br />Scott Gardner said the reason that Piedmont Electric can serve this inexpensively is that <br />this is the end of their line and they have no desire to extend it. Duke does not have this luxury <br />and they have other customers and they chose not to release this. <br />Commissioner Halkiotis said he thinks they chase not to release because they da not <br />want to release the future money that will be made. <br />Scott Gardner said that they chose not to do this because Duke Power has given the <br />School District a $1900 option to provide underground service to this facility. The fact that the <br />