N.J. Admin. Code § 14:9-10.1

Current through Register Vol. 56, No. 11, June 3, 2024

Section 14:9-10.1 - Purpose, scope, and general provisions

(a) This subchapter establishes for water utilities in New Jersey, a voluntary Distribution System Improvement Charge (DSIC), which is an initiative intended to create a regulatory mechanism that enables the accelerated level of investment needed to promote the timely rehabilitation and replacement of certain non-revenue producing, critical water distribution components that enhance safety, reliability, water quality, system flows and pressure, and/or conservation. Through a DSIC, after approval of the foundational filing, a water utility may charge customers, up to the DSIC cap amount, for the costs of rehabilitating, improving, or replacing water distribution infrastructure in accordance with this subchapter.

(b) The purpose of a DSIC is to provide a rate recovery mechanism that encourages and supports necessary accelerated rehabilitation and replacement. As set forth under this subchapter, such investment would occur in a systematic and sustained way to advance the accelerated rehabilitation and replacement of water distribution infrastructure needed for conservation, continued system safety and reliability, improved water quality, and sustained economic growth in the State of New Jersey.

(c) The Board shall require frequent and detailed monitoring and reporting of expenditures during all phases of the DSIC, as set forth in this subchapter, in order to ensure prudent investment and compliance with this subchapter.

(d) All petitions to the Board regarding DSIC activities shall be submitted by the water utility.

(e) A DSIC rate is interim, subject to refund, until the subsequent base rate case.

N.J. Admin. Code § 14:9-10.1

Amended by 49 N.J.R. 2542(a), effective 8/7/2017