N.Y. Comp. Codes R. & Regs. tit. 16 § 501.4

Current through Register Vol. 46, No. 45, November 2, 2024

Section 501.4 - Applicant beyond specified distance

Whenever an owner or occupant of any property abutting on any street, avenue, road or way or other public place as hereinbefore defined in which there is no water main within the distance specified in subdivision (d) of this section from said property makes a written application for service to the water-works corporation having authority to render service to said applicant, such corporation shall extend its system so as to serve said property, provided:

(a) Said applicant shall first have assured said corporation that he will be a reasonably permanent customer by meeting the following conditions:

(1) the applicant will own or occupy a premises in a permanent structure and on a building lot which both comply with governmental building codes and requirements;

(2) the applicant will take service for at least one year continually on an annual or seasonal basis; and

(3) the applicant will take service within 60 days of completion of the main extension.

(b) The applicant shall first have executed an agreement, the terms of which shall provide substantially as follows:

(1) applicant shall agree to pay to said corporation the rates charged to customers served under section 501.3 of this Part and in addition a surcharge of 19 percent (return, depreciation, taxes and maintenance) per year of the actual, reasonable cost of such portion of said main extension (excluding the cost of any service pipe, hydrants, and their accessories) that is in excess of the distance specified in subdivision (d) of this section from the end of the nearest water main appropriate to the service requested if the size of said extension be six inches or less in nominal diameter or if the service requested requires a main larger than six inches in diameter or 19 percent of the estimated cost of a six-inch main if said corporation lays a main greater than six inches in diameter when not necessary for the service requested; provided, however, that said surcharge shall begin at the date when water service is first available to the applicant and shall cease 10 years from that date;

(2) whenever more than one customer shall be connected to said extension, said surcharge shall be so adjusted as to yield to said corporation not more than said 19 percent in any one year from all customers served from said extension and said surcharge shall be reasonably allocated to the several customers served from said extension, taking into account that the distance of main hereinafter specified and a service are to be allowed without surcharge for each customer connected thereto;

(3) whenever the number of customers on a main extension multiplied by the distance specified hereinafter shall equal or exceed the length of the main extension, all surcharges shall cease; and

(4) in lieu of the above surcharge, the applicant may at his option pay the cost of the main extension in excess of the distance hereinafter specified subject to annual refunds without interest related to the number of new customers added to the extension each year multiplied by the distance hereinafter specified; however, refunds shall cease after 10 years or when the total of all refunds equals the amount of the original payment made by the applicant.

(c) The applicant shall first have furnished reasonable security as to performance of his agreement if so required by said water-works corporation; said reasonable security as to performance shall be by advance payment of the surcharge for a period not to exceed one year, or where an applicant's premises does not yet exist, by completion of the foundation and construction of a substantial portion of the premises framing before main extension construction is commenced, or by deposit by the applicant of the entire estimated cost of the extension until said premises construction is complete.

(d) The specified distance allowed for each applicant taking service from the main extension shall be 75 feet for "Class A" water-works corporations as defined in the Uniform System of Accounts and section 561.1 of this Title. For corporations that do not qualify as "Class A" corporations, the Commission staff may allow a main extension of less than 75 feet, at the corporation's request, based on the corporation's financial ability and existing investment in main.

N.Y. Comp. Codes R. & Regs. Tit. 16 § 501.4