Conn. Agencies Regs. § 16-11-61 - Plans for financing main extensions
Each utility shall file a plan acceptable to the commission providing for financing of extensions of mains. Such plan shall be based upon the following principles:
(1) Mains
having a diameter of less than six inches shall not be installed without prior
approval of the commission;
(2)
when it is determined, in accordance with a predetermined formula on file with
the commission, that the anticipated revenues are insufficient to cover all
operating expenses and to support the investment, advance payments,
contributions or guarantee rates in excess of the regular established rates
shall be required.
(3) Costs to be
borne by patrons or developers under extension contracts shall be calculated on
mains of the size required to serve the customer but shall not be calculated on
mains larger than eight inches in diameter unless unusual customer requirements
warrant a larger size main. Extension contracts shall include the cost of all
service connections, as defined in section
16-11-62(3),
constructed in connection with the installation of new mains by either class 1
or class 2 utilities.
(4) Estimated
costs shall be adjusted to actual costs upon completion of the work, except
that the use of average costs, excluding paving, may be used under the advance
or contributory forms of agreement.
(5) All main extension applications shall be
made in writing and a contract executed before start of construction.
(6) When the utility determines, in
accordance with a predetermined formula on file with the commission, that the
anticipated revenues are insufficient to cover all operating expenses and to
support the investment, the following conditions shall apply:
(A) Individual patrons shall be offered a
choice of the three following plans: "Guarantee," "Contributory" or "Refundable
advance payment";
(B) developers
having lots for building construction or the sale of homes shall be offered
either the contributory or refundable advance payments plans;
(C) all contributions or advances required
shall be paid before material is ordered. Material shall be ordered within a
reasonable time after receipt of deposit;
(D) no interest shall be paid on advance
deposits;
(E) the "Guarantee" plan
shall state the amount of the annual guarantee and shall be apportioned
equitably among patrons on the extension, and the time of payment shall be
specifically set forth;
(F) the
"Refundable advance payment" plan shall provide for and state the amount to be
refunded for each additional patron taking service from the extension and shall
have a termination date. The time of payment shall be specifically set
forth;
(G) the "Contributory plan"
shall provide for the payment by the developer of the entire cost of the
extension less the then present value of the anticipated payments, as
determined by the utility, which, under a refundable advance payment plan,
would become refundable to the developer;
(H) if a party other than the original patron
seeks service from an extension which was constructed under a refundable
advance payment contract, such party shall be required to advance an amount to
the company representing his equitable share of the cost of the extension, and
appropriate refund shall be made to the original patrons;
(I) if an additional party obtains service
along an extension serving patrons under guarantee rates, appropriate
adjustment shall be made in such guarantee rates.
(7) If an extension contract requires
additional facilities, such as standpipes and booster pumps, and such
facilities are not necessary to benefit the system as a whole, the cost of such
facilities may, with the approval of the commission, be included in the water
main extension contract. If facilities larger than required are installed to
serve an extension, the company shall pay the excess cost.
(8) If a utility determines, with the
Department's approval, that constructing and operating a water system not
connected to the utility's existing system is more feasible than extending the
utility's existing mains, the utility shall build such a non-connected water
system in accordance with (7) above, and account for such construction in
accordance with the Uniform System of Accounts. Any such non-connected water
system shall be designed to accommodate adjacent growth of at least 10% over
the non-connected supply's normal design demand. Any such non-connected water
supply shall be constructed in conformance with section
16-11-79
of these regulations. Installing a non-connected water system in lieu of
extending a utility's existing mains shall be considered feasible if conditions
including, but not limited to, the following prevail: in a development with at
least fifteen dwelling units or twenty-five persons, the investment for an
extension exceeds $5000 per dwelling unit or person; viable groundwater sources
are present; and adequate fire protection may be provided.
Notes
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