SAHBA News
New ACC Regulations Shock Developers
by Brigid Gannon, Gannon Utility Consulting, SAHBA Board of Directors
New utility regulations will impact the cost of facilities from Tucson Electric Power. These changes, driven by the Arizona Corporation Commission, could dramatically raise the cost of new homes.
Statewide, theACC wants utilities to charge their "actual cost of service."As a result, in its recent rate case, theACC ordered TEP to begin chargingmore for basic utility installation. This includes refundable deposits for subdivisions, underground feeder differential costs and 200-amp threephase extensions.
On June 1, builders must pay up-front for electric facilities. For example, the primary and secondary needed to supply power within a subdivision will be $18 per foot, which includes transformers and pedestals.
Overhead feeders will cost $36 per foot.Underground feeders: $51 per foot plus switch units at $20,500 each-a $500 increase. A secondary service charge of $640 was added,which gets the wire fromthe street to themeter.
Keep inmind, these are TEP charges.The earth and civil work remains the same; builders still must provide trenches and conduit for TEP.
Under the old regulations, subdivision costs could be deferred by a letter of credit or bond.When 75 percent of the homes hadmeters set, the contract was cancelled. The underground feeder differential contract also could be deferred for three years. At the end of the third year, a cash payment was expected.
We have until the end of May to get contracts paid, and 18 months after that to get the feeders and distribution in and energized to qualify for the old rates. Phoenix was not so fortunate.Their rates went into effect with no grace period.
Don't shoot the messenger. I'm here to help the building community. For details, contact Gannon at 405.2626 or email gannanuc@aol.com.
Members Create Civil War Cemetery for Soldiers
by Tom Heckendorn, SACA Executive Director
Several Southern Eastern Arizona Contractors Association (SACA) members are building a connection to a nationally significant historical event.
Over 140 years ago, the California Column, a 2,300-man brigade, was tasked to confront and drive out Confederate troops who controlled parts of what is now Arizona and New Mexico. Many of these men died completing theirmission. Thesemen and others were buried in a former Tucson military cemetery. Over time, the memory of the cemetery waned, lost in the growth of Tucson.
Discovered during excavation of Tucson's downtown court complex, the bodies of 54 Union soldiers and several Apache Indian scouts were exhumed and will be transferred for burial at the Historical Soldiers Memorial Cemetery in the Southern Arizona Veterans Memorial Cemetery in Sierra Vista.
During ceremonies set for May 16, these bodies will be re-interred with a full military burial.
The special Civil War cemetery is being constructed by SACA members with lead Construction Manager Mike Rutherford (Rutherford Diversified Industries). Construction efforts include clearing, grading, footings, wrought ironwork and electrical installation.
"Here's an incredible story of historical importance right in our own backyard. Who wouldn't want to participate?" says SACA President Rutherford. "It's a great opportunity for our members to build a national legacy," he adds.
SACA members who donated more than $1,000 in time, materials or money will be honored with a bronze plaque placed in the cemetery. Members who donated less than $1,000 will receive a brick paver that will surround a historic 36-star flag.
"We are proud to have SACA represent our community and country in the highest tradition," says Rutherford."This is the only time this has happened in American history; it was a project that needed to be done."
Contributions and donations to support this project are still needed. Contact Rutherford at mike@rdiinc.us or 520.458.8761.
