N.J. Admin. Code § 7:26H-1.12

Current through Register Vol. 56, No. 8, April 15, 2024

Section 7:26H-1.12 - Rates

(a) The Department upon complaint or on its own initiative may, after hearing, upon notice, by order in writing, direct any solid waste disposal utility to furnish proof that its rates for service do not exceed just and reasonable rates for such service.

(b) Should the Department find, after hearing, that the rates are unreasonable, it may order the solid waste disposal utility earning such unreasonable rates to make an adjustment in its tariffs, contracts or agreements to a sum which shall result in just and reasonable rates.

(c) Rates for solid waste disposal service which have for their objective the making effective of initial rates or revisions, changes or alterations of existing rates and which do not propose increases in charges above the peak rate to customers shall be filed in accordance with 7:26H-3.10.

(d) Rates for solid waste disposal service or petitions which have as their objective the making effective of revisions, charges or alterations of existing rates which propose to increase the charges for the service above the peak rate either directly or by the alteration of any classification practice, rule or regulation as to result in such an increase shall be filed in accordance with 7:26H-3.11.

(e) The procedures for Department review of a solid waste collection utility's rates and charges shall be in accordance with the procedures established in N.J.A.C. 7:26H-5.

(f) Notwithstanding the provisions of any other law, rule or regulation, court decision or order of the Board of Public Utilities or Department to the contrary, the solid waste disposal rates collected by a privately-owned sanitary landfill facility shall be deemed just and reasonable if:

1. Those rates are market-based rates; or

2. If the rates exceed the market-based rates authorized pursuant to (f)1 above and they are designed to either:

i. Stabilize incoming waste flows and prevent the premature exhaustion of landfill capacity; or

ii. Recover sufficient revenues to meet the revenue requirements of the privately-owned sanitary landfill facility.

(g) The internal cost of service or the financial condition of the privately-owned sanitary landfill facility is relevant to the determination of whether the solid waste disposal rates are market-based rates only if the owner or operator of the affected facility raises a revenue requirement defense in a contested case proceeding initiated by the Department pursuant to 7:26H-8.5.

(h) In a contested case proceeding pursuant to (g) above, the owner (at his or her sole discretion) or operator of the privately-owned sanitary landfill facility may establish a reasonable profit margin using either:

1. The return on rate base or operating margin methodology; or

2. Any alternative methodology that is consistent with market practices.

N.J. Admin. Code § 7:26H-1.12

Amended by R.1996 d.253, effective 6/3/1996.
See: 28 N.J.R. 78(a), 28 N.J.R. 247(a), 28 N.J.R. 1147(a), 28 N.J.R. 2908(a).
Amended by R.1997 d.510, effective 10/31/1997 (operative November 10, 1997).
See: 29 N.J.R. 4170(a), 29 N.J.R. 5084(a).
Readopted provisions of Emergency Amendment R.1997 d.404 without change.
Amended by R.2002 d.356, effective 11/4/2002.
See: 34 N.J.R. 1792(a), 34 N.J.R. 3819(a).
In (a), deleted "or solid waste collection" following "any solid waste disposal".
Amended by R.2008 d.117, effective 5/5/2008.
See: 39 N.J.R. 4477(a), 40 N.J.R. 2243(a).
In (c), substituted "customers" for "customer"; and added (f) through (h).