Line extension agreement and contribution

How do we calculate a line extension's cost by tariff, get the agreement signed and collect the contribution before work starts?

Compute the contribution from the tariff and make the agreement a signed screen. When a connection or an upgrade needs facilities beyond the standard allowance, Callvu prefills the project (the applicant, the premise, the engineering design and its cost estimate, the expected load and revenue), computes the customer's contribution under the tariff's line extension formula (the allowance from the estimated revenue, the excess cost, the refundable and non-refundable portions, the surcharge options where the tariff offers them), presents the agreement with the terms (the contribution, the refund provisions as others connect, the ownership of the facilities, the construction obligations and the schedule), chases the signatures and the payment, routes a disputed estimate or a non-standard term to engineering or the tariff desk in the Decision Desk, and writes the agreement, the payment and the release to construction to CIS and the work management system.

In scopeComplex: multi-party handoffsCallvu moves: prefill, chase and verify, decide, write back

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Last updated November 7, 2026.

The problem today

The developer disputed the contribution after the trench was dug, and the refund provisions for the next three customers were never tracked.

Today, without Callvu

When facilities must be extended to reach a new customer, the tariff decides who pays what: the utility funds an allowance tied to the expected revenue, the customer pays the excess, and part may be refunded as others connect to the same extension. The calculation is done by hand on an estimate, the agreement is a template mailed for signature, the payment is chased after construction has begun, and the refund provisions live in a filing cabinet.

The commission's tariff rules set the formula and the terms precisely, and the commission hears the disputes. The agreement must state the contribution, its basis, the refund terms and the obligations; it must be signed and the contribution paid before construction starts; and the refund obligations must be tracked for years. Each is a rule the process can apply.

A contribution computed from the tariff and accepted on a signed screen is one that holds.

How it runs

From the requestto the system of record.

Engineering's design for a new connection, an upgrade or a relocation exceeds the standard allowance. Callvu opens the line extension agreement from the project.

Applicant (developer, builder or customer): Reviews the contribution and the terms, signs the agreement and pays on a secure screen.
Engineering and the tariff desk: Confirm the estimate and decide disputes and non-standard terms in the Decision Desk.
Construction: Starts only on the release.
Callvu: Prefills, computes, presents, chases signatures and payment, routes and writes.

Prefill and compute
The project, the design, the engineering cost estimate, the expected load and the estimated annual revenue are prefilled; the tariff's line extension formula computes the allowance, the excess cost, the customer's contribution, the refundable portion and its period, and any surcharge or installment option the tariff offers; the basis is recorded.
Present the agreement
The agreement is generated from the computation with the terms (the contribution and its basis, the refund provisions as additional customers connect within the period, the ownership and maintenance of the facilities, the applicant's construction obligations such as the trench and conduit, the schedule and the expiration of the offer) and presented to the applicant in plain terms on a secure screen.
Chase and verify, and decide
The signatures of the applicant's authorized signer and the utility's are captured, the contribution is collected (or the installment or surcharge election recorded) on a secure screen, and both are chased on the offer's expiration clock; a disputed estimate, a request for a non-standard term, or an applicant who wants the commission's review goes to engineering or the tariff desk in the Decision Desk with the computation and only the allowed outcomes (confirm, revise the estimate, accept a non-standard term with authority, or refer).
Write back and release
The signed agreement, the computation, the payment and the refund obligations with their period are written to CIS and the work management system, construction is released, the refund tracking is set so each later connection to the extension triggers the refund computation, and the applicant sees the schedule.

Where it ends: The contribution was computed from the tariff with its basis recorded, the agreement signed and paid before construction, and CIS holds the agreement with the refund obligations tracked for their period. The Decision Trace shows the computation and any decision; the Audit Trace shows the presentation, the signatures, the payment and the release with time.

Runtime enforcement

What is enforcedwhile the work runs.

The regulations preloaded in Callvu Studio and the bank's own policies, applied as steps that run, not lines in a binder. A step that breaks a rule does not run, so a completed run was compliant.

Regulations

State commission tariff rules: The commission's line extension rules and the utility's tariff set the allowance the utility funds (commonly a multiple of the estimated annual revenue or a per-customer or per-foot allowance), the contribution in aid of construction the customer pays for the excess, the refund provisions when additional customers connect within a set period (often five to ten years), the alternatives (a monthly surcharge or installments), the ownership of the facilities by the utility, and the requirement that the agreement be executed and the contribution paid before construction.
Contribution in aid of construction accounting and tax treatment (the FERC Uniform System of Accounts, IRC 118 and the related guidance): Contributions are recorded as contributions in aid of construction, and a gross-up may apply where the contribution is taxable income to the utility; the computation shows the gross-up where the tariff provides it.
Commission dispute procedures: An applicant may ask the commission's consumer staff to review a line extension charge; the record of the computation, the basis and the agreement is the utility's response.

Company policies

The contribution is computed from the tariff's formula with the basis recorded; no desk estimate.
The agreement is generated from the computation and signed and paid before construction is released.
Disputes and non-standard terms are decided by a person with the computation in view.
CIS and the work management system hold the agreement and the refund obligations.

Controls

Project and estimate prefill.
Tariff formula computation.
Agreement generation and secure presentation.
Signature and payment capture on the offer clock.
Decision Desk for disputes and non-standard terms.
CIS write, construction release and refund tracking.

Clocks and deadlines

Offer expiration: The agreement's validity period, chased before it lapses.
Construction release: Only after the signed agreement and the contribution.
Refund period: The tariff's period after completion during which later connections trigger refunds, tracked on the agreement.

Documents and checks

The design and the cost estimate
The computation with the tariff basis
The agreement as presented and signed
The payment or the election
The CIS record and the refund tracking

In the Decision Trace

The computation and the formula applied.
Any decision and the person.

In the Audit Trace

The presentation with time.
The signatures and the payment with time.
The release and each refund trigger.

The handoff

Between the front doorand the back office.

The front door

The applicant reviews, signs and pays on a secure screen from the project's link.

The back office

Engineering and the tariff desk confirm estimates and decide disputes; construction starts on the release.

The Decision Desk

A disputed estimate, a non-standard term or a commission review request goes to engineering or the tariff desk in the Decision Desk with the computation and only confirm, revise, accept with authority, or refer.

Proof

In scope.Proof at scale, not one process at a time.

The kind of process Callvu runs in production for customers in this industry. Ask for a reference on this exact process. The results below are the industry's published proof; each claim code links to its record on agents.callvu.com.

More than 1,000 processes are live across Callvu customers.

Across Callvu customers

PSEG Long Island runs start, stop and move service on Callvu, live in 4 weeks.

Across Callvu customers

Questions

What buyers ask next,answered plainly.

How is the contribution calculated?

From the tariff's line extension formula: the allowance the utility funds from the estimated revenue, the excess cost of the design, the refundable portion and any surcharge or installment option, with the basis recorded.

What does the agreement say?

The contribution and its basis, the refund provisions as other customers connect within the period, the ownership of the facilities, the applicant's obligations and the schedule, presented in plain terms for signature.

When does construction start?

Only after the agreement is signed and the contribution is paid or the election recorded; the release is written to the work management system.

Related processes

New service connection application Easement and right-of-way agreement Facility relocation request Try it in the sandbox All utilities processes

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