New Jersey Administrative Code
Title 14 - PUBLIC UTILITIES
Chapter 9 - WATER AND WASTEWATER
Subchapter 7 - PURCHASED WATER AND WASTEWATER ADJUSTMENT CLAUSES
Section 14:9-7.2 - Definitions

Universal Citation: NJ Admin Code 14:9-7.2

Current through Register Vol. 55, No. 48, December 18, 2023

The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise. Additional definitions that apply to this subchapter can be found at 14:3-1.1 and 14:9-1.2.

"Base cost of purchased wastewater treatment" means the cost of contractually purchased wastewater treatment, as established in the most recent base rate case or through a PSTAC that has been approved through the procedures in 14:9-7.7. Purchased wastewater treatment cost shall be stated as a cost per 1,000 gallons or per 1,000,000 gallons, unless otherwise specifically approved by the Board.

"Base cost of purchased water" means the cost to a water utility of purchasing water through a contract. The base cost of purchased water is established in the most recent base rate case or adjustment clause case for that water utility. Base cost shall be stated as a cost per 1,000 gallons or cost per 1,000,000 gallons unless otherwise specifically approved by the Board.

"Base water consumption" means the amount of water consumed by customers of a particular water utility, as established in the most recent base rate Board Order, or adjustment clause Board Order that applies to that water utility. Base consumption is determined by subtracting unaccounted for water from the total amount of water that arrives from the purveyor to the utility water intake.

"Deferred accounting" means the deferral by a utility of accounting, on its books and records, for the amount of its over or under recovery of purchased water or wastewater treatment costs under a PWAC or PSTAC. A utility may request authorization for deferred accounting through a petition filed under 14:9-7.6.

"Flat rate basis" means the calculation of costs, rates and/or tariffs based on a method other than a metered basis, as defined in this section.

"Metered basis" means the calculation of costs, rates and/ or tariffs based on the flow of water or wastewater through a meter.

"New cost of purchased wastewater treatment" means the base cost of purchased wastewater treatment, as defined in this section, plus the increase or decrease in the wastewater treatment purveyor's charges to the utility since the base cost was last approved by the Board.

"New cost of purchased water" means the base cost of purchased water, as defined in this section, plus the increase or decrease in the water purveyor's charges to the utility since the base cost was last approved by the Board.

"Operating and maintenance expenses" means the amount a utility uses to pay for day-to-day operations including, but not limited to, wages, maintenance, office supplies, etc.

"Purchased wastewater treatment adjustment clause" or "PSTAC" means the provision in a wastewater utility's tariff that authorizes the utility to adjust its rates to compensate for an increase or decrease in the cost of wastewater treatment purchased from a wastewater treatment purveyor.

"Purchased water" means water that a water utility buys from a water purveyor.

"Purchased water adjustment clause" or "PWAC" means the provision in a water utility's tariff that authorizes the utility to adjust its rates to compensate for an increase or decrease in the cost of water purchased from a water purveyor.

"True up schedule" means a detailed list which reconciles the actual recovery of costs under the PWAC or PSTAC that is in effect for a particular water or wastewater utility, for a specific period of time, with the Board approved criteria for recovery of such costs, and specifies when this reconciliation will occur.

"Wastewater treatment purveyor" means either of the following:

1. A governmental entity, including a utility authority or commission, that is empowered by law to charge for the treatment of wastewater; or

2. A private entity, whose rates for the sale of wastewater treatment are regulated by the Board.

"Water utility using a flat rate basis" means any water utility whose rates and tariffs are not designed on a meter flow basis.

"Water utility using a metered basis" means any water utility whose rates and tariffs are designed on a meter flow basis.

Amended by R.1996 d.207, effective 5/6/1996.
See: 28 N.J.R. 1190(a), 28 N.J.R. 2405(b).
Added "PWAC rate case expenses" and amended "base cost of purchased water", "purchased water adjustment clause" and "truing up schedule".
Amended by R.2001 d.133, effective 5/7/2001.
See: 33 N.J.R. 367(a), 33 N.J.R. 1392(b).
In "Base consumption", inserted references to Board Orders; in "Deferred accounting treatment", inserted "of" following "water utility"; in "Water utility", deleted "the" following "subject to", substituted "by" for "of" preceding "the Board", and substituted "that" for "which" preceding "purchases water"; in "Water utility using a metered basis", inserted "flow" following "meter".
Amended by R.2006 d.367, effective 10/16/2006.
See: 38 N.J.R. 1538(a), 38 N.J.R. 4490(b).
Rewrote the introductory paragraph and definitions "Base cost of purchased water", "New Cost of purchased water" and "Purchased water adjustment clause"; deleted definitions "Base consumption", "Public entity", "PWAC rate case expenses", "Revenue tax factor", "Truing up schedule", "Water purveyor" and "Water utility"; added definitions "Base cost of purchased wastewater treatment", "Base water consumption", "Flat rate basis", "Metered basis", "New cost of purchased wastewater treatment", "Operating and maintenance expenses", "Purchased wastewater treatment adjustment clause", "Purchased water", "True up schedule" and "Wastewater treatment purveyor"; and substituted definition "Deferred accounting" for "Deferred accounting treatment" and rewrote the definition.

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