Line Extension Credits

While it is the practice of some utilities to charge the customer upfront for the build-out of infrastructure, most cooperatives like Columbia REA have a different philosophy. We apply an upfront credit to the total cost of construction, which varies by rate class. In addition, we provide the customer the option to finance the balance less the credit and amortize it over a 10- year time period.

In many cases, this credit allows development to actually take place. With the rising cost of construction, this policy in many cases facilitates the project to move forward. The idea is to aggregate the benefit of expansion for the membership while minimizing risk for the individual customer. Over the past decade Columbia REA provided over $5 Million in line extension credits for residential and commercial development.