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Section 11: Betterments and Betterment Credit

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The costs of betterments that are necessitated by the requirements of the highway construction are reimbursable.

The cost of betterments which are constructed at the election of the utility and are not attributable to the highway project, such as increased service capacity or service improvements, are non‑reimbursable.

The amount of betterment that the utility owner elects to include is established as a percentage at the time of estimate and execution of the utility agreement with the State.

This estimate‑based percentage is applied to the final costs billed.

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Betterments Necessitated by Highway Construction

No betterment credit is required for additions or improvements incorporated into a replacement facility for the following reasons:

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  • economy (non‑stocked items may be uneconomical to purchase)
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  • compliance with governmental laws and ordinances
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  • compliance with appropriate regulatory commission codes
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  • installing replacements that are of equivalent standard although not identical
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  • required by current design practices regularly followed by the company in its own work
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  • which there is a direct benefit of the highway project, or required by the highway project.
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Betterments Elected by the Utility Company

Where betterments are not necessitated by the highway construction, but are to be installed solely for the benefit of the utility company, the cost of installing such betterment items will not be eligible for State and Federal participation.

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