UNITED STATES DEPARTMENT OF AGRICULTURE

Rural Utilities Service

BULLETIN 17240-101B

SUBJECT: System Planning Guide, Construction Work Plans

TO: RUS Electric Borrowers and RUS Electric Staff

EFFECTIVE DATE: Date of Approval.

EXPIRATION DATE: Seven years from effective date.

OFFICE OF PRIMARY INTEREST: Distribution Branch, Electric Staff Division.

INSTRUCTIONS: This Bulletin is a revision of RUS Bulletin 1724D-101B, “System

Planning Guide, Construction Work Plans,” dated April 14, 1993.

AVAILABILITY: This Bulletin, and any other RUS bulletin mentioned herein, is
available on the RUS electric web page at: http://www.usda.gov/rus/electric/index.htm.

PURPOSE: The purpose of this bulletin is to provide guidance to borrowers and

engineers in the preparation of construction work plans (CWPs) for electric distribution
systems. A CWP is the documented results of an engineering study which has
determined all of the new construction required to provide adequate and reliable electric
service during the planning period. A CWP is used as an engineering support
document for a loan application, as a component of ongoing integrated system
planning, and as means for specifying and documenting plant requirements for the next
2 to 4 years.

REVISIONS: The following significant changes were made during the update of this
bulletin:

l The “Model Construction Work Plan”, a simplified sample work plan included in the
previous issue, was deleted so that writers of CWPs will not be influenced to limit the
creativity, scope, content or format of their studies and reports.

l Distribution system design criteria advocated by the Rural Utilities Service (RUS)
relating to voltage, thermal loading, and reliability were added to this bulletin.

l RUS advocates that alternative solutions to large, costly, construction projects

recommended in CWPs be economically evaluated and compared using a
procedure such as is described in RUS Bulletin 1724D-104, “An Engineering
Economics Computer Workbook Procedure.”

10/?//o 0
Assistant Administrator Date
Electric Program
Bulletin 1724D-101B
Page 2

TABLE OF CONTENTS

1. Use Of Construction Work Plan:..................................................................................3

2. Preparation: ................................................................................................................3

3. Determining Construction Requirements: ...................................................................5

4. The Construction Work Plan Report: ..........................................................................6

5. Environmental Reports: ..............................................................................................8

6. Construction Work Plan Amendments: .......................................................................9

7. Approval Of Construction Work Plans: .......................................................................9

Exhibit A: TABLE OF CONTENTS (Typical Construction Work Plan)

Exhibit B: RUS CONSTRUCTION CODES

INDEX
System Planning Guide
Long-Range System Plan
Construction Work Plans

ABBREVIATIONS

AMR Automatic Meter Reading

CFR Code of Federal Regulations
CWP Construction Work Plan
ER Environmental Report
G&T Generation and Transmission Cooperative
GFR General Field Representative
kW Kilowatt
LRP Long-Range Plan
O&M Operations and Maintenance
OCR Oil Circuit Recloser
RUS Rural Utilities Service
SCADA Supervisory Control and Data Acquisition
 Bulletin 1724D-101B
Page 3
1. USE OF CONSTRUCTION WORK PLAN (CWP)

The CWP process is used to determine and document a borrower’s 2 to 4 year

construction needs that are the most feasible, environmentally acceptable, and
economical. New construction is periodically required in order to provide and maintain
adequate and reliable electric service to all of a system's new and existing members.
The CWP should include all recommended electric plant facilities regardless of the
financing source (general funds, RUS, or all other lenders). A CWP is a valuable
reference for the preparation of annual construction budgets and schedules. The CWP
report is also used as an engineering support document for a loan application to finance
a proposed construction program. As such, the CWP is used as a means to inform
RUS and receive RUS's approval of proposed new construction items.

2. PREPARATION

The first step in the CWP preparation or development process usually involves a
meeting among the system’s management, the system's staff or consulting engineer,
the RUS General Field Representative (GFR), and perhaps the borrower’s power
supplier. An agreement should be reached at this meeting on the new CWP's planning
period, projected maximum loads and number of consumers, and other technical items
as presented in this section. At this time, an agreement should also be reached on
dates and type of data to be furnished to the engineer, the target completion date of the
CWP and future dates of any coordination, and CWP draft review meetings.

2.1 To Be Reviewed : The following data and studies need to be reviewed, analyzed,
and updated by the planning engineer.

2.1.1 Historical system data such as energy purchases and sales, losses, peak kW
demands, and number of consumers need to be tabulated. This information is generally
included in the CWP as reference information but not used in the CWP analysis.

2.1.2 System design criteria has to be established. This criteria identifies the
standards within which the system must perform. The design criteria becomes the
basis for defining and identifying problems on the system and for justifying necessary
improvements. The design criteria should address all aspects of the system that are to
be analyzed. All design criteria should be documented and included in the CWP. The
system management, engineer, and GFR should agree upon the design criteria before
development of the CWP study begins.

2.1.2.1 RUS recommends that the following values be included in the design criteria:

• The maximum voltage drop on primary distribution lines not exceed 8 volts (120 volt
base) after no more than 2 stages of re-regulation beyond the substation;

• The following equipment not be thermally loaded by more than the percentages
shown:

Power Transformers – 105% of nameplate rating;

Substation and Line Voltage Regulators – 100% of nameplate rating;
Oil Circuit Reclosers – 70% of nameplate rating;

• Primary conductors not be loaded over 80% of their thermal rating (50% for major tie
lines between substations);
Bulletin 1724D-101B
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• Conductors be replaced if found to contain an average of over 2 splices per phase
per span in a 1 mile (1.6 kilometers) section; and

• No more than an average of 5 consumer outage hours, per consumer, per year,
excluding outages caused by major storms or the power supplier, for the last 5
consecutive years in any specific area.

2.1.2.2 The list in Section 2.1.2.1 is not inclusive of all criteria that can or should be
used. Design criteria should address deficient system components such as deteriorated
poles and equipment, inadequate clearances, safety and code violations, and define the
type of construction to be used as the system standard. The types of problems
documented and the numerical quantities addressed will be somewhat different for each
distribution system.

2.1.3 The system's currently approved load forecast (formerly referred to as a

Power Requirements Study) needs to be reviewed. The projected system peak kW
loads and number of consumers for the CWP planning period should be derived directly
from this load forecast. However, for analysis and needed construction purposes,
individual historical peak substation demands should be used. Any loads and numbers
of consumers used that are not consistent with the load forecast projections need to be
explained in the CWP.

2.1.4 The system's currently approved Long Range Plan (LRP) needs to be
analyzed to ascertain that its basis (load projections, economic factors, etc.) are still
valid for the CWP planning period and also that its construction recommendations are
still required, feasible, and economically sound. It is appropriate to include a thorough,
yet concise, written review of the LRP in the CWP, including a comparison of historical
projected versus actual peak loads. A written summary of the overall recommendations
of the LRP helps the reader understand how new recommended construction items
conform to the projected development of the system.

2.1.5 Previous CWP and CWP amendments need to be reviewed to determine which
projects have been or will be completed and which construction items need to be
carried over into the current CWP. Carryover items may need new cost estimates and
occasionally may need additional justification. The status of the construction items of
the previous CWP can be explained succinctly with a table.

2.1.6 The engineer should use the system's most recent Operations and
Maintenance (O&M) survey with its associated "Review Rating Summary" (RUS Form
300) to determine the condition of system components such as poles and conductors,
outages, and tree trimming. This summary may also be used to justify the need of new
construction items and programs to correct those areas where the system does not
meet the design criteria. The O & M survey should be appropriately updated and
analyzed to assure that it describes the system’s present conditions. A new O & M
survey should be performed before beginning the CWP if the present survey is more
than 3 years old. A concise written analysis of the O & M survey and results, and any
recommendations contained in the survey, should be included in the CWP. This
analysis should contain enough details to explain deficiencies found on the system and
the work required to correct them.

2.1.7 All other relevant studies recently performed on the system, such as
sectionalizing, system aging, and power factor correction, should be reviewed in detail
and compared to the requirements of the design criteria. All present and projected
deficiencies on the system should be documented in the CWP to explain the problems
 Bulletin 1724D-101B
Page 5
found and the construction required to resolve them. Narratives and tables may be
used to explain and justify recommended construction.

2.1.8 Periodic system data and reports, such as substation maintenance reports and
mini-max voltmeter readings, should be tabulated, analyzed, and compared in detail to
the design criteria. All data that is included in the CWP report should be summarized in
a concisely written narrative or table. Only include data used to define problems or
explain and justify proposed construction items.

2.1.9 The system's service interruption record for the previous 5 years should be
analyzed, and summarized in a table and included in the CWP. The CWP narrative
should address findings of the interruption analysis and major outages should be
explained in adequate detail.

2.1.10 The following maps, data, and information need to be gathered, updated,
analyzed, tabulated, and documented as appropriate:

• Various system, key, circuit and area maps;

• Results of circuit analysis, and economic analysis of the system;

• Installed costs of existing lines and equipment;

• Historic and projected numbers, distances, and costs associated with installing
new overhead and underground lines, services, transformers, and meters; and,

• Historic and projected numbers, distances and costs associated with replacing
overhead and underground services, transformers, and meters.

This information is also useful as exhibits in the CWP to explain recommended

construction items or projects.

2.1.11 It is suggested that the engineer interview line crews, warehouse personnel,
and others who have first hand knowledge of deficiencies on the system or problems
with equipment. All reported deficiencies should be corroborated before recommending
construction items in the CWP.

3. DETERMINING CONSTRUCTION REQUIREMENTS

3.1 New Consumers: The projected number of new consumers is interpolated from
the system's load forecast. The number of new consumers, line distances, equipment,
and cost data from the past several years is used to project needed construction and its
cost to provide service to new consumers to be added during the time period covered
by the CWP. The cost to add known new large power usage members to the system
during the CWP coverage period should also be added to these totals.

3.2 Historical Data: Use historical data to determine the number and associated costs
for the necessary replacements of service drops, transformers, and meters in order to
maintain adequate service to existing members.

3.3 System Peak Demand: Projected total system peak demands are also interpolated
from the load forecast. The totals may be modified, with explanation, to include recently
attained new load data. The engineer should apply appropriate growth and diversity
factors to individual circuits and substations so that the total loads are in agreement with
Bulletin 1724D-101B
Page 6
the load forecast projections. Loading tables, which show equipment capacities,
projected circuit and substation transformer loads, new load additions, load transfers,
and new construction projects should be included in the CWP. These loading tables are
used to determine and show substation equipment which is anticipated to be loaded
above the design criteria.

3.4 Anticipated Loads: Each of the system's distribution circuits, updated to include
anticipated new loads and circuit changes, should be analyzed at its projected peak
load for the entire CWP planning period. The primary voltage drop at each circuit node,
the thermal loading of all circuits’ conductors and equipment, circuit power factors, and
circuit load balances should be compared to the design criteria.

3.5 Voltage Drops: Primary voltage drops calculated by computer programs should be
corroborated with actual field measurements which have been adjusted to load levels
equal to the computer runs. These field measurements can be obtained from periodic
readings of the system's installed voltmeters or from voltage and current investigations
performed on the system. Calculated readings that are different from the actual
adjusted measured readings, need to be reconciled using good engineering judgment to
justify new construction items. Costly construction projects should not be based solely
on computer calculations that may be prone to input errors or based on assumptions not
pertinent to the line being analyzed.

3.6 Recommendations: The CWP should include recommendations for correcting

each item found that does not comply with the design criteria. This includes all
problems found during the substation and circuit loading analyses, problems found in
the engineer's review of the system's planning and O & M studies, and operating
reports, and problems found in studying the power supply system if applicable to the
borrower.

3.7 Alternative Solutions: The engineer usually has several options available to
resolve existing and anticipated problems. Most solutions require new construction or
equipment replacement. The engineer is expected to investigate all feasible alternative
solutions and make recommendations that are in compliance with the LRP. Solutions
recommended are also expected to be the most economical, considering both the
distribution and the power supply system needs together as one system. The present
worth cost of alternative plans can easily be determined and compared by downloading
and using the computerized workbook attached to RUS Bulletin 1724D-104, “An
Engineering Economics Computer Workbook Procedure.”

3.8 Power Supply and Delivery Points: New power supply and delivery point
construction items and projects, which are to be provided by a utility other than the
borrower, need to be discussed with and concurred by the power supplier before the
recommendation is included in the CWP. Agreement, in writing, needs to be reached
on the location and amount of new capacity or delivery and the in-service date.

4. THE CONSTRUCTION WORK PLAN REPORT

The purpose of the CWP report, which is a documentation of the CWP study and
recommendations, is to describe, justify, and summarize the items which have been
determined necessary for construction during the work plan period. Written justification
usually explains the need for a system improvement to meet the design criteria
pertaining to voltage, thermal loading, service reliability, or losses, and also explains
economic benefits compared to other feasible alternatives. The contents of the report
should contain sufficient facts and details, including maps, graphs, and tables, to
accomplish the above purposes. Narratives should be concise, factual, and relevant. It
 Bulletin 1724D-101B
Page 7
is suggested that any information or data which does not contribute to the stated
purpose of the report be omitted. A table of contents for a typical CWP is illustrated in
Exhibit A. RUS recommends that all of the components listed in Exhibit A, plus all other
pertinent subjects, be incorporated in CWPs submitted to RUS for approval.

4.1 Executive Summary: An "Executive Summary" section should be included at the

beginning of the CWP report. This summary should be short enough to be read within a
few minutes and fully understood without referring to other sections of the report. The
purpose of the summary is to briefly describe the system, the basis of the engineering
study, and summarize the proposed construction program. This summary should also
include expected results and the estimated costs. The following items should also be
included in the Executive Summary.

• A brief description of the borrower, the electric system, and the power supplier.
Small maps may help clarify these descriptions.

• A complete summary listing of all of the proposed construction items detailing the
total cost of the proposed construction program or a table in the format of RUS Form
740C, "Cost Estimates and Loan Budget for Electric Borrowers." These construction
items should be numerically coded according to the latest RUS guidelines. A
summary of the RUS construction codes are provided in Exhibit B.

• A loading table showing the results of the proposed construction items, projected
circuit and transformer loading, new load additions and load transfers. The table
should show that all anticipated equipment and circuit loading problems will be
resolved during the planning period.

4.2 Historical and Projected Data: A section of the CWP report should document
historical and projected system data, the design criteria, unit cost estimates and their
derivation, and a written analysis of the various system studies and data that the
engineer reviewed, prepared and used in performing the systems analysis. In general,
this information is used to determine the portions of the system and equipment which do
not meet the design criteria. The information is also used to formulate a basis for the
acceptability and cost estimates of alternative plans to resolve the existing and
anticipated problems.

4.3 Documentation: Another complete section of the CWP report should be used to
document the entire construction program proposed. It is suggested that the items in
this section be arranged in the same order as found on RUS Form 740C. All significant
proposed new construction items, groups of items, and system modifications should be
adequately and concisely described and justified. Justification usually includes the
reason for and expected results of the construction, and also shows favorable
economics when compared to other feasible alternatives.

4.3.1 Transmission line, substation, and other power supply items can be explained
using form and contents similar to distribution items.

4.3.2 A concise written summary analysis of other relevant independent system

studies, such as O & M, sectionalizing, Supervisory Control Data Acquisition (SCADA),
load management, Automatic Meter Reading (AMR) feasibility, and system aging
studies should be included in the report. This analysis should explain the study, its
results, and the need for new construction. A copy of each study need not be included
in or appended to the CWP report. A listing or table of the construction items and their
associated costs proposed as a result of each of the above studies should be placed in
the CWP report with the other required construction items.
Bulletin 1724D-101B
Page 8

4.4 Calculations: Samples of calculations performed by the engineer, and sample

printouts of the computer programs used by the engineer, such as engineering
economic analysis and distribution circuit analysis, should be included in the Appendix
of the CWP report. It is desirable to include only one or two typical samples of
calculations or printouts. However, the engineer should retain all pertinent calculations,
data, and notes for future references.

4.5 The Appendix: of the CWP should also include maps of the system which show,
as a minimum, the following information:

• The borrower's service area and each substation area;

• The power supply system facilities such as generating stations, transmission lines,
and substations;

• Distribution lines and components such as line regulators, capacitors, protection

devices, etc.;

• Representative primary voltage drops resulting from projected loads throughout the
system and at the end of each circuit;

• Planned and/or anticipated new loads, lines, equipment, etc.;

• Recommended new and carryover construction items; and,

• Any additional data or information that may be required to describe the system or
describe and justify proposed new construction items.

4.5.1 The first map should show the existing system, with anticipated loads (existing
customer growth and additions), anticipated and planned circuit changes, and projected
resulting primary voltages at the end of the planning period. The purpose of this map is
to clearly describe the system and show anticipated problems at the end of the planning
period without proposed new construction items.

4.5.2 The second map should basically contain all of the information included on the
first map plus the proposed construction items and the resulting voltage and other
system improvements. The purpose of this map is to show that the proposed new
construction and changes will improve primary voltages or otherwise are beneficial to
the system.

4.5.3 The above-mentioned maps should be drawn neatly, as close to scale as

possible, and utilize accepted standard symbols. A key of the symbols should be
included on the maps.

5. ENVIRONMENTAL REPORTS

As part of the CWP, a review of the projects set forth in the CWP report will have to be
made to determine if a Environmental Report (ER) or other environmental assessment
is required. RUS has to make the final environmental determination. Refer to Title 7 of
the Code of Federal Regulations, Part 1794, Environmental Policies and Procedures,
for all of the requirements regarding environmental reviews.
 Bulletin 1724D-101B
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6. CONSTRUCTION WORK PLAN AMENDMENTS

A CWP amendment will be required for most needed changes to a CWP that has been
approved by RUS. An example of a needed change to existing CWPs is a new project
not included in the current CWP. Review of CWP amendment projects will also have to
be made to determine if an ER or other environmental assessment is required.

7. APPROVAL OF CONSTRUCTION WORK PLANS

7.1 Approval: Where practical, a draft of the CWP report should be presented to the
RUS GFR prior to completing the final version. The final version of the CWP should be
presented to the system's board of directors for questions and answers and any
modifications as may be deemed necessary by the board. The board of directors
should then approve the CWP by resolution.

7.2 Approved Authority: RUS CWP approval authority is delegated to the GFR for all
distribution, headquarters, and subtransmission facilities. Approval for any bulk
transmission, generation, or other types of facilities contained in the CWP is delegated
to the appropriate RUS regional offices in Washington, D.C. Two copies of the CWP
report should be furnished to the GFR who will forward one copy to the Regional office
in Washington, D.C. RUS approval of the CWP constitutes general approval of the
need for the construction of facilities in the CWP. Borrowers seeking financing from
RUS for the construction of these projects should consult the appropriate regulation
regarding the need for design approval, contract approval, or environmental approval.
Bulletin 1724D-101B
Exhibit A
Page 10

TABLE OF CONTENTS
(TYPICAL CONSTRUCTION WORK PLAN)

i. Title Page; Engineer’s Certification (When applicable)

ii. Table of Contents

I. EXECUTIVE SUMMARY

A. Purpose, Results, and General Basis of Study

B. Service Area, Distribution System, & Power Supply

C. Summary of Construction Program and Costs

D. Loading Table with Changes

II. BASIS OF STUDY AND PROPOSED CONSTRUCTION

A. Design Criteria

B. Distribution Line and Equipment Costs

C. Status of Previous CWP Items

D. Analysis of Current System Studies

1. Current Long-Range Plan

2. Current O & M Survey (RUS Form 300)

3. Sectionalizing Studies

E. Historical and Projected System Data

1. Annual Energy, Load, and Consumer Data

2. Substation Load Data

3. Transformer and Circuit Loads

4. Load Current Measurements

5. Voltage Measurements

6. System Outages and Reliability

 Bulletin 1724D-101B
Exhibit A
Page 11

III. REQUIRED CONSTRUCTION ITEMS [See Note Below]

A. Service to New Customers

B. Service Changes to Existing Customers

C. Distribution Lines – Additions and Changes

D. Substations (Metering Points) – Additions and Changes

E. Sectionalizing Equipment – Additions and Changes

F. Line Regulators – Additions and Changes

G. Capacitors – Additions and Changes

H. Ordinary Replacements

I. Other Distribution Items

IV. APPENDIX

A. Samples of Computerized Analyses Used

1. Economic Analysis of Alternative Plans

2. Distribution Circuit Analysis Printout

3. Economical Conductor Sizes

B. Letter of Concurrence from Power Supplier

C. Systems Maps with Projected Load Levels

1. Map of Projected System Without Changes

2. Map with Proposed New Construction Items

[NOTE: THIS LIST OF REQUIRED CONSTRUCTION ITEMS MAY NOT BE

COMPLETE FOR ALL SYSTEMS. OTHER CATEGORIES, SUCH AS
TRANSMISSION LINES, SCADA FACILITIES, AND HEADQUARTERS FACILITIES
SHOULD BE INCLUDED IN EACH CWP AS APPROPRIATE.]
Bulletin 1724D-101B
Exhibit B
Page 12
RUS CONSTRUCTION CODES
(For coding construction projects and for use on RUS Form 740c)

CODE NUMBERS EXPLANATION

(DISTRIBUTION)
100 – 199 NEW LINES (New primary, secondary and service lines [not
tie lines] where no lines presently exist. A conversion or line
change required to provide new service should be included
under Code 300. However, an exception would be one in
which new line and conversion or line changes are required
on the same work order project. In that case, the total costs
are included under the code for the predominant cost
activity.)
200 – 299 TIE LINES (New construction between two or more existing
lines or substations)
300 – 399 CONVERSIONS or LINE CHANGES (Any conversion or line
change of an existing primary circuit. Increased capacity of
service [secondary and service] wires is to be included under
Code 600.)
400 – 499 NEW SUBSTATIONS, SWITCHING STATIONS and
METERING POINTS
500 – 599 SUBSTATION, SWITCHING STATION and METERING
POINT CHANGES
600 – 699 MISCELLANEOUS DISTRIBUTION EQUIPMENT
700 – 799 OTHER DISTRIBUTION ITEMS

(TRANSMISSION)
800 – 899 NEW LINES
900 – 999 NEW SUBSTATIONS, NEW SWITCHING STATIONS
1000 – 1099 LINE and STATION CHANGES
1100 – 1199 OTHER TRANSMISSION ITEMS
1200 – 1299 GENERATION
1300 – 1399 HEADQUARTERS FACILITIES
1400 – 1499 ACQUISITIONS
1500 – 1599 ALL OTHER