N.J. Admin. Code § 14:9-7.1

Current through Register Vol. 57, No. 1, January 6, 2025

Section 14:9-7.1 - Scope, applicability, and general provisions

(a) This subchapter provides for Board approval of purchased water adjustment clauses (PWACs) and purchased wastewater adjustment clauses (PSTACs), as these terms are defined at N.J.A.C. 14:9-7.2. A PWAC or PSTAC allows a utility to include in rates the costs of fluctuations in purchased water or purchased wastewater treatment, without the necessity of a full base rate case.

(b) To be eligible for a PWAC or a PSTAC, a utility shall meet the following requirements, as applicable:

1. For a water utility, the utility's purchased water costs, as defined at N.J.A.C. 14:9-7.2, exceed 10 percent of its total operating and maintenance expenses; and

2. For a wastewater utility, the utility's purchased wastewater treatment costs, as defined at N.J.A.C. 14:9-7.2, exceed 10 percent of its total operating and maintenance expenses.

(c) The Board approves a PWAC or PSTAC for one year, based on estimates of a utility's cost of purchased water or purchased wastewater treatment, and expected total volume of water or wastewater.

(d) At the end of each year, a utility with an approved PWAC or PSTAC shall:

1. Submit to the Board a year-end true up schedule to reconcile the previous year's actual and estimated costs of purchased water or purchased wastewater treatment; and

2. Submit a petition for an adjusted PWAC or PSTAC for the upcoming year.

N.J. Admin. Code § 14:9-7.1

Amended by R.1996 d.207, effective 5/6/1996.
See: 28 N.J.R. 1190(a), 27 N.J.R. 2405(b).
Added (b).
Amended by R.2001 d.133, effective 5/7/2001.
See: 33 N.J.R. 367(a), 33 N.J.R. 1392(b).
In (b), deleted "regular" preceding "rate relief".
Repeal and New Rule, R.2006 d.367, effective 10/16/2006.
See: 38 N.J.R. 1538(a), 38 N.J.R. 4490(b).