Commercial : DOING BUSINESS WITH US : NEW CONSTRUCTION
Connection
Process |
General Power
Service Agreement
| Load Growth Credit | Tax Exemption | Security
Deposit
If you are constructing a new facility,
it is extremely important to use qualified professionals to work with MLGW to ensure
efficient, cost effective construction. Utility construction is coordinated through
MLGW's Customer Engineering department which has offices at each of our four Service
Centers.
The utility service
connection process for new construction is divided into six steps:
1. Obtain Site Approval
Contact the Memphis and Shelby County Office of Planning and Development (901-385-5075)
to ensure that your site has been zoned for the proposed commercial use. At this time,
you will also want to contact the appropriate Code
Enforcement Agency regarding permits and inspections.
2. Obtain Facility Address
Contact MLGW's Address Assignment department (901-528-4628) to have an address assigned
to your property. MLGW is the only entity which can assign addresses in Memphis and
Shelby County.
3. Initiate Work Request
Contact MLGW's Builder Services Center at 367-3343 to initiate the request-for-service process. You will need to submit a set of plans for the new facility and provide a contact name for the construction phase as well as a contact name for monthly operations. (You also may request temporary power, if needed, to accommodate construction.)
4. Provide Load Breakdown
Contact MLGW's Customer Engineering staff at the appropriate Service
Center regarding the technical specifications of your utility service needs. If
you are working with a contractor, that person can handle this step. The accuracy
of this data is extremely important. Over-estimates will result in higher than necessary
monthly costs; under-estimates will restrict the amount of energy supplied to your
facility.
5. Assist Design Process
Once MLGW has all the above information, the utility design process begins. You or
your designated representative will be contacted during this stage to verify building
needs and pay any construction contribution costs. (The Customer Engineering Service
Expediter at the appropriate MLGW
Service Center can provide project status during this pre-construction phase.)
You also will need to sign utility service documents, including a General
Power Service Agreement. Special tax exemption and load
growth credit programs are available for eligible businesses and should be explored
now. Depending on your credit history, you may be required to provide a security
deposit for your account.
6. Build, Receive Inspections and Get Utilities
The appropriate Code Enforcement Agency
will make various inspections throughout the construction process and must make a
final inspection before MLGW can set any meters and provide utilities. (The appropriate
Planner/Coordinator schedules utility construction; MLGW's Service Expediter tracks
the status of inspections performed by code enforcement agencies.)
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General
Power Service Agreement
All customers are required
to sign a General Power Service Agreement which identifies the customer and outlines
contract conditions. Depending on utility usage levels, you also may be required to
sign Electricity and/or Natural Gas Service Agreements. These documents ensure that
sufficient energy is provided for your operation and establish the minimum monthly
bill for utilities at your facility. If applying for service by phone, the form(s)
will be mailed for your signature. If applying in person, you can complete the form(s)
at that time.
Load Growth
Credit
The Enhanced Load Growth
Credit (EGC) program is designed to provide demand billing credits for qualified new
and expanding commercial and industrial customers on general power or time-of-day
contracts. Offered by MLGW and the Tennessee Valley Authority, the load growth program
awards limited credits of $6.00 per kW for eligible electric demand loads.
New and expanding companies eligible for the
EGC program include those categorized as a Standard Industrial Classification (SIC)
Code Customer, an All-Electric Customer or other Qualifying Customer.
An “SIC Customer” is defined as a new or expanding customer with a contract demand
of at least 100kW whose primary business operation is described by one of the following
two-digit SIC categories:
-Mining 10-14
-Manufacturing 20-39
-Railroad transportation 40
-Motor freight/warehousing 42
-Water transportation 44
-Air transportation 45
An “All-Electric Customer” is defined as a new or
expanding all-electric customer with a contract demand of at least 250 kW where: (a)
space conditioning is accomplished by an all-electric HVAC system and (b) at least
50 percent of the interior floor space is heated and cooled.
The “Other Qualifying Customer” is defined as an existing customer who is expanding
and adding at least a 250 kW load for space heating, cooling, water heating or cooking.
To qualify for the credit, customers must sign a participation agreement and a power
supply contract before new service is provided. To determine if your company is eligible
and to learn about additional provisions to the Enhanced Load Growth Credit program,
contact the Commercial Resource Center.
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MLGW offers sales tax exemption through
the State of Tennessee for qualified religious and non-profit organizations and a
reduced or exempt tax rate for manufacturers. If you are an eligible religious or
non-profit organization, provide a copy of your completed Tennessee Department of
Revenue “Certificate of Exemption” at the time of service request. If you are an eligible
manufacturing operation, provide a copy of your completed Tennessee Department of
Revenue “Industrial Machinery Authorization Exemption Certificate” to receive the
appropriate tax rate.
The tax form must include the same business
name and address as the location for which you are requesting utility service. If
the information is different, you will need to request a new tax certificate from
the state and send it to MLGW before the tax exemption can be applied to your utility
account. For information, call the State of Tennessee Sales Tax Department at 1-800-342-1003.
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Security Deposit
Based on your company’s credit history
and financial health, you may be required to pay a security deposit which is typically
refunded after three years of good payment history. The security deposit is a separate
fee from any construction costs you may pay.
There are several options you may choose in
lieu of posting a cash security deposit. Options include a guarantor, indemnity bond,
certificate of deposit, bank letter of credit and waiver based on findings from a
certified, audited financial statement. For information, contact MLGW’s Collections
department at 901-528-4307.
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