N.J. Admin. Code § 14:9-11.4

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

Section 14:9-11.4 - WSIC Foundational Filing

(a) The Board shall authorize the implementation of a WSIC by a wastewater utility. Under the WSIC, the Board shall authorize a wastewater utility to recover costs associated with WSIC-eligible projects through an approved WSIC rate.

(b) To obtain authorization to implement a WSIC, the wastewater utility shall submit a Foundational Filing to the Board. Whether filed separately or concurrently with a base rate case, the wastewater utility shall submit with the Foundational Filing certain information as described below:

1. An engineering evaluation report of the wastewater utility's sewer system that:

i. Identifies the rationale for the work needed to be accelerated for the wastewater utility to properly sustain its wastewater infrastructure;

ii. Demonstrates that the plan proposed to accelerate the renewal of the wastewater infrastructure is the most cost-effective plan;

iii. To the extent that elements of the wastewater infrastructure are failing, identifies what mechanisms are causing the failures; and

iv. Identifies what is being done to extend the life of the wastewater utility's wastewater infrastructure assets.

2. WSIC project information for the upcoming WSIC period that includes the following:

i. A list of potential projects with cost estimates, WSIC-eligible asset class, or category;

ii. A list of projects that were initiated under a prior Foundational Filing that were in-service, but not recovered in base rates as an eligible WSIC project or were not in-service at the time the WSIC rates were reset to zero pursuant to N.J.A.C. 14:9-11.6(c) and to which the utility will seek recovery of WSIC-eligible expenses under the new Foundational Filing;

iii. A list of projects that were in-service during a prior Foundational Filing and where previously unrecovered restoration costs may be sought in a current Foundational Filing;

iv. The nature, location, estimated duration of project work (including estimated in-service dates), and a description and reason for project necessity;

v. Aggregate information capturing blanket-type, WSIC-eligible infrastructure, to be rehabilitated or replaced (that is, service laterals, manholes, etc.) and the estimated annual cost of such blanket-type replacement programs;

vi. Vintage, condition, or other similarly relevant, reasonably available information about the eligible infrastructure that is being rehabilitated or replaced;

vii. Estimated project costs;

viii. Project identification numbers, so WSIC projects can be easily tracked; and

ix. Other such information, as is relevant and appropriate, in order to provide adequate information to make an informed decision regarding any given project.

3. The expected amount of base spending for the wastewater utility, including underlying detail adequate to document that the base spending has been made on the appropriate types of infrastructure including, a proposed WSIC assessment, calculated in accordance with N.J.A.C. 14:9-11.9 and work papers showing the detailed calculations supporting the proposed assessment schedule.

4. A public notice and hearing, at a minimum, are required in the WSIC Foundational Filing. The hearing notice shall include the maximum dollar amount allowable for recovery between rate cases, as well as an estimated rate impact for the entire period on customers.

5. After a Foundational Filing has been approved by the Board, a wastewater utility may select the WSIC-eligible projects from the Board's pre-approved list of potential projects. Unreimbursed utility relocation costs associated with relocations required by governmental entities, the details of which are not known or knowable at the time of the Foundational Filing, shall be submitted as a substitution project.

6. A Foundational Filing may be filed concurrently with a base rate proceeding.

(c) No WSIC Foundational Filing shall be approved unless a wastewater utility has had its base rates set by the Board within the past three years and any prior WSIC rate was reset to zero through the current, or prior, base rate case. A WSIC Foundational Filing may be approved concurrently with the setting of base rates. The Board has 120 days from the date of a complete filing or, if filed concurrently with a base rate case or during the pendency of a base rate case, until the effective date of the Board's approval of a base rate case, whichever is later, to act on the proposed WSIC Foundational Filing petition. However, Board staff may, if necessary, request the wastewater utility to agree to an extension of time for the Board to act on the petition.

(d) When a wastewater utility has its WSIC rate reset to zero, a new Foundational Filing must be approved before new WSIC investments and WSIC rate recovery may occur.

(e) If within three years after the effective date of a Foundational Filing, a wastewater utility has not filed a petition in accordance with the Board's rules for the setting of its base rates, all interim charges collected under the WSIC rate shall be deemed an over-recovery, and shall be credited to customers in accordance with this subchapter. A wastewater utility may seek recovery of such projects in the ordinary course through its next base rate case. Notwithstanding the above, a wastewater utility may continue to collect a WSIC charge during a pending rate case filed in accordance with this section.

N.J. Admin. Code § 14:9-11.4

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