New Jersey Administrative Code
Title 14 - PUBLIC UTILITIES
Chapter 9 - WATER AND WASTEWATER
Subchapter 7 - PURCHASED WATER AND WASTEWATER ADJUSTMENT CLAUSES
Section 14:9-7.3 - Initial PWAC or PSTAC

Universal Citation: NJ Admin Code 14:9-7.3

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

(a) A water or wastewater utility with purchased water costs or wastewater treatment costs may file a petition with the Board for approval of an initial purchased water adjustment clause or purchased wastewater treatment clause, provided the utility meets all of the following criteria:

1. The utility's purchased water cost, or purchased wastewater treatment cost, exceeds 10 percent of the utility's operating and maintenance expenses;

2. The Board has approved the utility's base rates through a rate case and order during the three years prior to submittal of the petition for an initial PWAC or PSTAC; and

3. The utility has received notice of an increase or decrease in the cost of purchased water from its water purveyor, or in the cost of purchased wastewater treatment from its wastewater treatment purveyor.

(b) To obtain Board approval of an initial PWAC or PSTAC, a utility shall submit a petition that meets the requirements of 14:9-7.6. The utility shall submit the petition as soon as possible after the utility receives notice of a change in its purchased water or purchased wastewater treatment costs, and no later than 45 days after receiving such notice. The Board may extend this deadline for just cause.

(c) No initial purchased water adjustment clause shall be approved unless a water utility, within the prior three years, has had its base rates set by the Board in a decision and order which established base level data against which the new cost of purchased water can be measured. All succeeding adjustment clauses shall reflect the incremental or decremental cost of purchased water.

(d) The Board shall process a petition for approval of a PWAC or PSTAC in accordance with the rules of procedure regarding petitions at N.J.A.C. 14:1-5, the rules regarding contested cases at N.J.A.C. 14:1-8 and the Uniform Administrative Procedure Rules at N.J.A.C. 1:1.

(e) An initial PWAC or PSTAC shall remain in effect until the utility's next rate case, provided that the utility submits an annual year-end true up and an annual petition for adjustment of the PWAC or PSTAC amount, in accordance with 14:9-7.4.

Amended by R.1996 d.207, effective 5/6/1996.
See: 28 N.J.R. 1190(a), 28 N.J.R. 2405(b).
Rewrote the section.
Amended by R.2001 d.133, effective 5/7/2001.
See: 33 N.J.R. 367(a), 33 N.J.R. 1392(b).
In (a), rewrote the second sentence and inserted "by the Board" preceding "for just cause" in the third sentence; in (c), substituted "The" for "Said" at the beginning of the second sentence; in (d), substituted "result from" for "are results of" preceding "a true up" in the first sentence, substituted "in" for "at" preceding "its discretion" and inserted ", whichever is the most appropriate refund under the specific circumstances" following "by check" in the second sentence.
Amended by R.2006 d.367, effective 10/16/2006.
See: 38 N.J.R. 1538(a), 38 N.J.R. 4490(b).
Section was "Petitions for purchased water adjustment clauses; truing up schedules; time for filing." Rewrote (a); added new (b), (d) and (e); recodified former (b) as new (c); and deleted former (c) through (e).

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