26 Del. Admin. Code § 2002-12.0

Current through Register Vol. 28, No. 7, January 1, 2025

Section 2002-12.0 - Suspension or Revocation of CPCN for Good Cause

12.1 Pursuant to the provisions of 26 Del.C. §203 (k) and (1), the Commission may suspend or revoke a CPCN, or a portion thereof, for good cause. Good cause shall consist of:

12.1.1 A finding by the Commission that the holder of a CPCN has not materially complied with:

(a) any provisions of Titles 7, 16, or 26 of the Delaware Code dealing with obtaining water or providing water and water services to customers; or

(b) any order or rule of the Commission relating to the same;

12.1.2 A finding by the Commission that, to the extent practicable, service to customers will remain uninterrupted under an alternative water utility or a designated third party capable of providing adequate water service, including a trustee or receiver appointed by the Delaware Court of Chancery; and

12.1.3 Either (a) a finding by the Commission that there are certain methods to mitigate any financial consequences to customers served by the utility subject to suspension or revocation and the adoption of a plan to implement those methods; or (b) a finding by the Commission that there are no practicable methods to mitigate the financial consequences to customers.

12.2 In addition to the factors required by Sections 12.1.1, 12.1.2, and 12.1.3, the Commission may also consider one or more of the following factors in determining whether to suspend or revoke a CPCN:

12.2.1 Fraud, dishonesty, misrepresentation, self-dealing, managerial dereliction, or gross mismanagement on the part of the water utility; or

12.2.2 Criminal conduct on the part of the water utility; or

12.2.3 Actual, threatened or impending insolvency of the water utility; or

12.2.4 Persistent, serious, substantial violations of statutes or regulations governing the water utility in addition to any finding of non-compliance required by Section 12.1.1 above; or

12.2.5 Failure or inability on the part of the water utility to comply with an Order of any other State or Federal regulatory body after the water utility has been notified of its non-compliance and given an opportunity to achieve compliance; or

12.2.6 Such other factors as the Commission deems relevant to the determination to suspend or revoke a CPCN.

26 Del. Admin. Code § 2002-12.0

27 DE Reg. 894 (5/1/2024) (Final)