Section 407-640-4 - METHODOLOGIESA. A water utility's private fire protection charge may be billed on the basis of the design flow demand required by the customer's private fire protection system or the maximum available flow measured at the customer's end of the service drop, whichever is less. 1. A water utility using a full allocation study to determine total fire service charges shall apportion such charges between public and private fire services based upon the relative flow demand required by each segment as set forth by the following formula (See Section 4(A)(4) for definition of Terms): A= B/(C+D)
P= (AxD)+ E
T= (CxA)+ M
2. A water utility using PUC Chapter 690 to determine total public fire protection charges shall use the following formula for determining the revenues required for private fire protection services (See Section (A)(4) for definition of Terms): P=(T/C)*D[1]
3. Regardless of whether a water utility determines private fire protection charges by Subsection A(1) or A(2) above, for cost allocation purposes, public hydrants shall be assumed to have flow rates of 500 GPM in residential areas and 1000 GPM in all other areas. All private hydrants, except the first hydrant with each sprinkler system, shall be assumed to have flow rates of 500 GPM. The first hydrant connected to a sprinkler system is excluded from the calculation and there is no additional charge for that hydrant. In the absence of more specific information, flow rates for sprinkler systems may be determined using the National Fire Protection Association (NFPA) Table 13 provided in Appendix B. Utilities may use different flow rates if they can be justified and supported by adequate documentation.4. TERMS ________________The terms contained in Sections 4(A) 1 and 2 are defined as follows:
[1]See Appendix A for an example of this method, including allocation of revenues
A = Indirect gallon per minute cost
B = Total indirect fire protection costs
P = Revenue requirement for private fire protection
T = Revenue requirement for municipal fire protection
C = Total flow demand required for municipal fire protection
D = Total flow demand required for private fire protection
E = Private fire protection direct costs
M = Municipal fire protection direct costs
5. This method of determining private fire protection charges may be implemented at the discretion of the water utility, or a water utility may be ordered to do so by the Commission after a finding of good cause. In either case, reallocation of charges, if excessive, may be phased-in on a case-by-case basis.65- 407 C.M.R. ch. 640, § 4