N.J. Admin. Code § 14:9-11.2
For the purposes of this subchapter, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise. Additional definitions that apply to this subchapter can be found at N.J.A.C. 14:3-1.1.
"Adjusted weighted average cost of capital" does not include short-term debt, so long as the wastewater utility does not have short-term debt in its approved capital structure. The equity component of the pre-tax adjusted weighted average cost of capital will be the equity rate approved by the Board in the wastewater utility's most recent base rate case, however, the approved embedded cost of debt will be adjusted semi-annually, to reflect the actual embedded cost of debt at the end of the WSIC recovery period, never to exceed the actual embedded cost of debt approved in the last base rate case.
"Base spending" means the level of investment equal to the wastewater utility's depreciation expense for utility plant accounts: Account No. 320-Service Connections, Traps and Accessories, Account No. 321-Collecting Mains & Accessories, and Account No. 323 - Force Mains, as reported in the wastewater utility's most recent annual report to the Board, at the time the foundational filing is submitted. The investments eligible for inclusion in base spending are the same as set forth at N.J.A.C. 14:9-11.3(a).
"Depreciation expense" on the WSIC assets means the amount of the total of all eligible investments multiplied by the weighted composite depreciation rate on those assets.
"Eligible investment in WSIC projects" means the total of the applicable in-service projects under this program, less the base spending requirement.
"In-service" means when a WSIC-eligible project has been replaced/rehabilitated and is functioning in its intended purpose. It is in use (that is, not under construction) and useful (that is, actively helping the utility to provide safe, adequate, and proper service).
"Pre-tax adjusted weighted average cost of capital" means the adjusted weighted average cost of capital calculated on a pre-income tax basis.
"Restoration costs" means costs necessary to restore construction to preconstruction condition, or as dictated by State, Federal, or municipal laws, rules, ordinances, orders, or regulations, including, but not limited to, paving, sidewalks, curbing, landscaping, and traffic control costs for WSIC-eligible projects approved in a foundational filing.
"Revenue factor" means a gross-up for the associated revenue taxes, uncollectibles, BPU assessment, and Division of Rate Counsel assessment, adjusted to properly reflect the revenue required to generate the agreed upon rate of return.
"Wastewater System Improvement Charge" or "WSIC" means the charge developed in accordance with this subchapter. Once implemented, the WSIC continues in effect until new base rates become effective for the wastewater utility, consistent with the requirements of this subchapter.
"Wastewater utility" has the meaning assigned to this term in the Board's water and wastewater rules at N.J.A.C. 14:9-1.2.
"WSIC cap" or "cap" means the maximum amount of annual WSIC revenues that a wastewater utility can recover during the period the WSIC rate is in effect, through the assessment or surcharge computed in accordance with the requirements of this subchapter. The cap is established by calculating five percent of the wastewater utility's total revenues as established in the most recent base rate decision. The outcome of that calculation establishes the maximum revenue requirement recovery level for which a wastewater utility can seek recovery through the WSIC.
"WSIC-eligible projects" mean wastewater system projects and projected costs that:
1. Are limited to non-revenue producing wastewater projects, such as replacement or rehabilitation of sewer lines (including structural and non-structural lining projects), grouting and sealing of sewer line joints; replacement or rehabilitation of sewer laterals, manholes, force mains; and sewer lines, manholes, and sewer lateral relocations (or other utility owned sewer assets) stemming from coordination with government entities;
2. Are included in the appropriate foundational filing or semi-annual filing made by the wastewater utility with the Board, and approved by the Board, as set forth at N.J.A.C. 14:9-11.4, and/or the semi-annual WSIC reconciliation filing, as set forth at N.J.A.C. 14:9-11.5;
3. Are in excess of the wastewater utility's base spending; and
4. The costs of which are not already being recovered through current base rates, as set by the wastewater utility's most recently concluded base rate case proceeding.
"WSIC filing" means the filing made by a wastewater utility for each WSIC recovery period as specified at N.J.A.C. 14:9-11.5. WSIC filings shall contain actual data for the WSIC recovery period and are expected to be made approximately semi-annually.
"WSIC period" means the period of time between the effective date of the foundational filing and the rate effective date of the next base rate case.
"WSIC rate" means the amount of the assessment added to customers' bills, calculated in accordance with the requirements of this subchapter, which will be assessed on the basis of meter charges or other Board approved charges. This rate is reviewed by the Board and reset to zero in a wastewater utility's base rate case.
"WSIC recovery period" means each period during which WSIC-eligible projects are to be completed and put into service followed by a WSIC filing.
"WSIC revenue requirement recovery amount" means the total eligible amount to be recovered through the WSIC charge as calculated pursuant to N.J.A.C. 14:9-11.9.
N.J. Admin. Code § 14:9-11.2