United States Department of Agriculture
Rural Development
1400 Independence Avenue, SW, Washington, DC 20250
Web: http://www.rurdev.usda.gov
Committed to the future of rural communities.
October 5, 2006
SUBJECT: Coding a Major Development Project In
Construction Work Plans and Loan Applications
TO: All Electric Programs’ Distribution Borrowers
FROM: James R. Newby
Assistant Administrator
Electric Programs
The Rural Development Utilities Programs, Electric Programs’ publication titled Electric
Operations Manual (EOM–4), Guidelines for Implementation of 7 CFR 1711.1, Electric Loans-
Advance of Funds, is being revised and changed to Bulletin 1721A-1, Guide Bulletin for the
Implementation of Electric Loans-Advance of Funds. Prior to the finalization and publication of
the new Bulletin 1721A-1, a decision has been made to issue a change in the procedures of
EOM-4. The change in procedures will no longer require separate coding of a proposed
distribution line extension to serve a major residential or industrial development, which is
defined as having an estimated investment for new service of $100,000 or more, or will have a
demand of 1,000 KW or more. Under the current EOM-4 procedures, a separate code
number (Code 103, 104, etc.) is required to identify a line extension to provide new service to a
major residential or industrial development in the borrower’s Construction Work Plan (CWP), if
a distribution borrower requests financing in a loan application on Form 740c.
The Electric Programs has determined that the estimated cost of a line extension to serve a new
major residential or industrial development is no longer needed in a separate code, but should be
included in the general category of Code 100, identified in the borrower’s CWP and loan
application, for all the proposed new line extensions expected over the CWP period. Once the
general category Code 100 has been established