Common use of Capacity Fee Clause in Contracts

Capacity Fee. All applicants shall be charged a Capacity Fee, as filed in the Service Fees rate schedule, in addition to any line extension charges. This one-time fee shall be based on the nameplate kV of the transformer. For members upgrading/downgrading service, Capacity Fees shall be applied as follows: 1. If the member paid a Capacity Fee when service was installed and now wishes to upgrade/downgrade service, then the member shall be charged/receive credit for the difference between the original Capacity Fee paid by the member and the newly computed Capacity Fee. 2. If a member did not pay a Capacity Fee when service was installed and now wishes to upgrade service, then the member shall be charged an incremental Capacity Fee (Capacity Fee for the new transformer – Capacity Fee for the existing transformer). 3. If the member did not pay a Capacity Fee when service was installed and now wishes to downgrade service, then the member shall not receive a Capacity Fee credit for a downgrade in service.