This is how an APCO engineer explained it to me:
Alabama Power notes
5:1 ratio
For every $1000/year in revenue, APCO will pay $5000 (one time) for installing lines
Per pole cost is up to $2,500, and a pole can span no more than 350 feet
Sample property is 3/4 mile (4,000 feet) from existing power (to the tract)
4,000/350 = 12 spans
$2,500 x 12 = $30,000 total cost to run lines 3/4 mile
If revenue was $50/month x 12 months = $600 annually
.6 x 5,000 = $3,000 paid by APCO
$30,000 - $3,000 = $27,000 to consumer
If revenue was $100/month x 12 months = $1200 annually
1.2 x 5000 = $6,000 paid by APCO
$30,000 - $6,000 = $24,000 to consumer
Yea what he said and stuff!! I am on TREC so I really couldn't help ya.
