65- 407 C.M.R. ch. 120, § 7

Current through 2024-25, June 19, 2024

Section 407-120-7 - REQUIREMENTS FOR CONSUMEROWNED WATER UTILITY RATE FILINGS UNDER 35-A M.R.S.A. section 6104

A.General Provisions

1.Purpose. The purpose of this section is to describe the requirements for the form, content, and notice of consumer-owned water utility rate filings pursuant to 35-A M.R.S.A. §6104. Nothing in this section prohibits a consumer-owned water utility from filing a general rate case rather than using the procedure set forth in this section

2.Applicability. This section is applicable to consumer-owned water utilities as defined in 35-A M.R.S.A. §6101(1-A).

3.Default Provision. Whenever a filing under this section fails to comply with the requirements of 35-A M.R.S.A. §6104 or this section, it may be suspended for investigation. If the filing is so suspended, or is suspended upon a petition from utility customers, the filing may become a general rate case subject to the requirements of Section 5 of this Rule and the notice requirements of Chapter 110, Section 6(B)(1)(b) and (c) of the Commission's Rules (65-407 C.M.R. 110 (6)(B)(1)(b) and (c), unless these provisions are waived upon a showing of a good cause.

4.Compliance with Fire Protection Revenue Determination Procedure. All consumer-owned water utility rate filings under this section must comply with the Commission's public fire protection revenue determination procedure as set forth in Chapter 690 of the Commission's Rules (65-407 C.M.R. 690) unless the utility has received a waiver from the rule's requirements. If the filing fails to comply with Chapter 690, the Commission will not allow the proposed rates to take effect unless they are substantiated by an acceptable allocation study for the utility's system. If the rates are already suspended as provided in section 7(A)(3), the issue will be addressed in that rate proceeding. If the rates are not otherwise suspended, and the water utility wishes to pursue its original filing, the rates will be suspended pending review.

B.Procedure

1.Notice. A consumer-owned water utility filing rates under this section must provide the notices described below.

a.Newspaper Publication. At least fourteen (14) days before holding a public hearing on the rate filing, the utility must publish a notice of the rate filing in a newspaper of general circulation in the area served by the utility.

b.Individual Notice. At least fourteen (14) days before the public hearing, the utility must furnish individual notices of the rate filing to each of its customers by the same means it uses to distribute its customer bills.

c.Notice to Commission. The utility must furnish the Commission with copies of the published notice and of the notice sent to customers at least fourteen (14) days before the public hearing.

d.Content of Notice. Each notice must contain:

(i) the amount of the rate change;

(ii) the percentage rate change for each customer class;

(iii) the customer's right to request information relating to the present and proposed rates;

(iv) the customer's right to an open and fair hearing and to further hearings before the Commission;

(v) the availability of assistance from the Public Advocate; and

(vi) the date, time, place and purpose of the public hearing.

2.Supporting Materials.

a. At least thirty (30) days before the public hearing on the rate filing, the utility must file a copy of all relevant materials supporting the rate filing with the Commission and the Public Advocate. The materials must include:

(i) the proposed annual revenue change;

(ii) the proposed new rate sheets; and

(iii) any calculations, exhibits, statements, or work papers showing that the proposed rate filing will produce the necessary revenues.

b. The utility must make a copy of all relevant material supporting the rate filing available for examination by customers at its offices for at least thirty (30) days prior to the hearing.

c. The utility must promptly provide, upon request by a customer, the Commission, or the Public Advocate, any information or relevant additional material which is readily available.

3.Public Hearing. A consumer-owned water utility filing rates under this section must hold a public hearing prior to filing the proposed rates with the Commission.

a.Purpose of Hearing. At the public hearing, the Public Advocate and any customer may testify, and may question the officials of the utility regarding the proposed rate filing. The utility must answer questions, provide supporting materials for inspection, and accept statements.

b.Information Required. At the commencement of the hearing, the utility must inform those present that the rate filing may be investigated by the Commission in accordance with 35-A M.R.S.A. §6104.

c.Summary required. The utility must submit a summary of the public hearing to the Commission when filing its proposed rates. The summary must include:

(i) a copy of the newspaper notice as published, showing the date of publication; and

(ii) a summary of the comments received at the public hearing and the utility's responses to the issues raised by the comments. If the utility changes the proposed rate filing in response to customer comments, the summary must include an explanation of any such changes.

4.Filing.

a.Time for Filing. The utility must submit its rate filing to the Commission not sooner than 10 days, and not later than 30 days, after the public hearing.

b.Form. Except as otherwise specified in this section, the form and content of all schedules filed under this section must comply with Section 3 of this Rule.

c.Proposed Effective Date. A consumer-owned water utility submitting a rate filing under this section must include a proposed effective date. The proposed effective date must be a least one month, but no more than nine (9) months, from the date on which the Commission receives the filing.

5.Correction. The Commission, Administrative Director or Assistance Administrative Director may order the utility to correct any mathematical or clerical errors in the filing.

6.Petition for Investigation.

a.Time for Petition. Any petition for Commission investigation of a consumer-owned water utility rate filing under this section must be filed within thirty (30) days of the public hearing.

b.Number of petitioners. Any petition for Commission investigation of a consumer-owned water utility rate filing under this section must be signed by either fifteen percent (15%) of the utility's customers or by on thousand (1000) customers, whichever is less. For purposes of this section, "customer" means, in the case of residential accounts, any one adult residing in a household where the utility's service is provided, and in the case of non-residential accounts, any one corporate officer, partner, or proprietor. No one person may sign a petition under this section on behalf of more than one account, unless that person receives service at the account.

c.Filing. Any petition under this section must be filed both with the Commission and with the treasurer of the consumer-owned water utility proposing the rate filing.

d.Suspension. Upon receiving a petition for investigation of a consumer-owned water utility rate filing, the Commission may suspend the filing. The Commission must notify the consumer-owned water utility of the suspension.

e.Challenge by Utility.

(i)Deadline. A consumer-owned water utility must notify the Commission within ten (10) days of receiving notice of the suspension if it intends to challenge any aspect of the validity of a petition.

(ii)Hearing. Within thirty (30) days of a utility's notice that it intends to challenge the validity of a petition, the Commission must hold a public hearing on the validity of the petition and issue a decision on the validity of the petition.

(iii)Relief from Suspension. If the Commission finds a petition to be invalid, it must lift the suspension of the rate filing. If a suspension is lifted under this section, the rates shall take effect on the original effective date, unless the Commission orders a different effective date.

65- 407 C.M.R. ch. 120, § 7