N.J. Admin. Code § 14:9-11.3

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

Section 14:9-11.3 - Investments eligible for recovery under a WSIC

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

1. Sewer main replacement and rehabilitation;

2. Structural and non-structural lining projects;

3. Grouting and sealing of sewer line joints;

4. Replacement or rehabilitation of sewer laterals, manholes, and force mains; and

5. Reline or relocation of sewer lines, manholes, and sewer laterals (or other utility owned sewer assets) stemming from coordination with government entities.

(b) Each wastewater utility is required to make the base spending investment in each 12-month period contained within the authorized WSIC period in order to take advantage of the WSIC program. A wastewater utility is not required to spend the base spending amount prior to recovering WSIC expenditures. In the event that a wastewater utility fails to spend its base spending for the 12-month period, or over-recovers the WSIC revenue requirement recovery amount for the 12-month period, the wastewater utility must provide a credit to customers to be reflected in the WSIC 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 WSIC.

1. At the time of the 12-month WSIC filing, the wastewater utility shall recalculate the WSIC rate for the prior 12 months and determine the amount of WSIC-eligible expenditures. For purposes of this calculation, all expenditures will first be used to satisfy the base amount and then be classified as WSIC-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 WSIC filing as WSIC-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 wastewater utility must credit any expenditures that were classified at six months as WSIC-eligible expenditures, but at 12 months were reclassified as base expenditures, or otherwise determined to be non-WSIC-eligible expenditures.

(c) Restoration costs associated with an eligible project as set forth in (a) above and approved through a wastewater utility's foundational filing, as permitted pursuant to N.J.A.C. 14:9-11.4(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 WSIC filing.

N.J. Admin. Code § 14:9-11.3

Adopted by 52 N.J.R. 2115(a), effective 12/7/2020