Pole Replacement Capitalization Through RUS Funding

Cost-Saving Alternatives to Pole Replacement Now Eligible for RUS Funding

Funding and Capitalization Through RUS

Pole restoration has been capitalized by most Osmose restoration customers across the U.S. as both the Federal Energy Regulatory Commission (FERC) and the Rural Utilities Service (RUS) have recognized restoration as capital investments. In fact, the RUS Uniform System of Accounts reference “reinforcing and stubbing” in their Poles, Towers, and Fixtures capital account (364). RUS borrowers may now also include pole restoration in their Construction Work Plans (CWPs) and/or CWP amendments. Pole restoration labor and materials are eligible for inclusion in a CWP and a loan application.

The RUS Coding Guide has been updated to include RUS Code 618 – Pole Restoration. The coding guide also provides additional details on what is considered restoration versus maintenance. This will provide flexibility to RUS borrowers who choose to use this process to extend the life of the poles on their electric system.

Pole Restoration/Pole Banding is an eligible item for RUS Financing in the RUS Coding Guide as RUS Code 618 – Pole Restoration
Pole Restoration/Pole Banding is an eligible item for capitalization under USOA, account 364-Poles, Towers, and Fixtures

Financial Benefits

Osmose has restored more than 1.5 million wood poles nationwide saving utilities over $3 billion compared to pole replacement. It pays to restore versus replace with the average distribution pole replacement costing $2,500. However, the average cost to restore a pole is only $700. That equates to an immediate savings of $180,000 for restoring 100 poles. You could fund all or part of your inspection and treatment program with the cost savings you generate from the restoration.

Wood Pole Services

Cost-Saving Alternatives to Pole Replacement Now Eligible for RUS Funding

Contact your local Osmose expert to learn more about cost-saving alternatives to pole replacement.

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