65- 407 C.M.R. ch. 640, § 3

Current through 2024-51, December 18, 2024

Section 407-640-3 - RATE COMPONENTS

A. A water utility's private fire protection charge shall include reasonable amounts to cover the cost of:

1. Depreciation and debt service or return on utility investment in the service drop portion of the private fire service lines;

2. Normalized cost for the maintenance and repair of the service drop portion of private fire service lines;

3. Any maintenance, repair, inspection, or testing services performed routinely by the utility for all private fire protection service customers; and

4. A reasonable allowance for the cost of water used for flushing and testing the private fire service lines and for fire fighting.

5. A reasonable allowance for the costs of back-up facilities necessary to provide private fire protection service.

B. A water utility's private fire protection charge shall not include any maintenance, repair, inspection, or testing services performed for private fire service customers on demand, i.e. any services beyond those included in the private fire protection charge. These additional services shall be treated as jobbing and shall be billed directly to the customer requesting the service.

C. The utility shall establish and maintain the sub-accounts necessary to account for all private fire service capital, maintenance, operating and jobbing expenditures/expenses/revenues. These sub-accounts shall be used to determine the proper level of service charges allowed under section 3(A).

65- 407 C.M.R. ch. 640, § 3