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Section 6: Transportation and Equipment Charges

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In the accumulation of utility adjustment costs necessitated by highway construction, costs incurred in the operation and use of equipment and transportation vehicles are reimbursable when properly supported.

Expenses cleared through transportation and heavy equipment accounts may include depreciation; fuel and lubricants for vehicles (including sales and excise taxes); freight and express on fuel and repair parts; heat, light, and power for garage and garage office; insurance (including public liability and property damage insurance) on garage equipment, transportation equipment and heavy work equipment; license fees for vehicles and drivers; maintenance of transportation and garage equipment; operation of garages; and rent on garage buildings and grounds.

Equipment costs may include the costs of supervision, labor and expenses incurred in the operation and maintenance of heavy equipment and transportation equipment of the utility, including direct taxes and depreciation.

A particular class or type of equipment or vehicle may be charged to an individual account on an hourly rate or mileage depending upon the company’s standard operating procedure in recording such costs.

Reimbursement of transportation and equipment costs will be limited to charges that account for cost to the utility of expenses for equipment used. Arbitrary or otherwise unsupported equipment use charges will not be reimbursed.

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Where the utility does not have equipment available of the kind or type required to perform the necessary utility adjustment, reimbursement will be limited to the amount of rental paid to the lowest bidder following an appropriate solicitation for quotations from owners of the required kind or type of equipment.

In the event of an emergency, such as a breakdown of utility equipment or the need for equipment not originally contemplated, reimbursement will be allowed for rental of equipment at the lowest rate available under the prevailing conditions.

Equipment rates should be based upon actual cost to the utility. Standard rates such as those published by the Associated Equipment Distributors may not be applied to utility owned equipment since an increment of profit is included in the published rates which is not reimbursable.

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Small Tools

Reimbursement for the use of small tools on a project will be made on the basis of tool expenses accumulated in and distributed through the utility’s clearing accounts or other equitable and supportable allocation basis; otherwise, it will be limited to actual loss or damage during the period of use. In the latter case, the loss or damage shall be billed in detail and supported to the satisfaction of the State.

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