N.J. Admin. Code § 14:9-10.3

Current through Register Vol. 56, No. 24, December 18, 2024

Section 14:9-10.3 - Investments eligible for recovery under a DSIC

(a) A water utility may seek recovery for any or all of the following costs through a DSIC:

1. Water main replacement and rehabilitation;

2. Water main cleaning and lining;

3. Valve and hydrant replacement;

4. Service line replacement (from main to curb or meter pit); and/or

5. Un-reimbursed utility relocation costs associated with relocations required by governmental entities.

(b) Each water utility is required to make the base spending investment in each 12-month period contained within the authorized DSIC period in order to take advantage of the DSIC program. A water utility is not required to spend the base spending amount prior to recovering DSIC expenditures. In the event that a water utility fails to spend its base spending for the 12-month period, or over-recovers the DSIC revenue requirement recovery amount for the 12-month period, the water utility must provide a credit to customers to be reflected in the DSIC filing, following the end of each 12-month period. The credit will consist of the impact of the shortfall of the base spending during the 12-month period. The required base spending will not be recovered through the DSIC.

1. At the time of the 12-month DSIC filing, the water utility shall recalculate the DSIC rate for the prior 12 months and determine the amount of DSIC-eligible expenditures. For purposes of this calculation, all expenditures will first be used to satisfy the base amount and then be classified as DSIC-eligible expenditures.

i. If the total eligible expenditures relating to projects over the prior 12 months exceed the sum of the required base amount and expenditures for projects classified at the prior six-month DSIC filing as DSIC-eligible expenditures, no credit is due.

ii. If the total eligible expenditures relating to projects over the prior 12 months do not meet the requirements of (b)1i above, then a water utility must credit any expenditures that were classified at six months as DSIC-eligible expenditures, but at 12 months, were reclassified as base expenditures, or otherwise determined to be non-DSIC-eligible expenditures.

(c) Restoration costs associated with an eligible project as set forth in (a) above and approved through a water utility's Foundational Filing or substitute project as permitted under N.J.A.C. 14:9-10.4(b)5, may be recovered if incurred prior to or within 18 months of the project's in-service date and timely included in a normally scheduled semi-annual DSIC filing.

N.J. Admin. Code § 14:9-10.3

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