Alabama Administrative Code › Title 770 - ALABAMA PUBLIC SERVICE COMMISSION › Chapter 770-X-9 - WASTEWATER MANAGEMENT ENTITY RULES › Section 770-X-9-.08 - Standardized Financial Operations And Management

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Wastewater Management Entities shall be
					established and exist as separate business entities and not as subsets or
					divisions of other business entities.
(2) Wastewater Management Entities shall
					limit business activities to those allowed by their Commission-approved
					tariffs.
(3) Wastewater Management
					Entities shall not contribute capital toward the initial design, equipment
					purchase, or construction of wastewater systems. Wastewater Management Entities
					shall not borrow against wastewater system assets or in any manner pledge such
					assets as security without the prior written approval of the
					Commission.
(4) Wastewater
					Management Entity contracts with project developers shall contain provisions
					formulated to ensure wastewater systems are designed and constructed properly
					using methods and equipment of industry standard quality.
ADPH Minimum
					Construction and Testing Standards for Cluster Wastewater Systems
shall be used as a benchmark for industry standards. In addition, contract
					provisions shall require project developers to compensate Wastewater Management
					Entities for inspection, permitting, and other expenses incurred during the
					planning and construction stages of wastewater systems as well as wastewater
					system operating expense shortfalls during project build-out. In general, all
					contracts to which an ME is a party shall be written to protect the interests
					of the ME and its ratepayers over time.
(5) Wastewater Management Entities shall take
					whatever measures necessary to ensure that subdivision or development
					"Covenants to Run with the Land" are in place to protect their interest as the
					sewer service provider for the development.
(6) Wastewater Management Entities shall
					employ all available avenues to collect vacant lot fees and sewer systems
					access fees when due. Whenever possible. Wastewater Management Entities should
					have arrangements in place with the local issuer of Certificates of Occupancy
					to delay move-in until all Wastewater Management Entity requirements are met
					and fees are paid. Wastewater Management Entities may initiate disconnection
					procedures with respect to residential lots and business establishments where
					vacant lot or system access fees are outstanding in accordance with the
					provisions of their standardized tariff on file with the PSC.
(7) Wastewater Management Entities shall
					employ water shut-off valves and/or sewer poppers to be used for the purpose of
					disconnecting sewer service for non-payment.
(8) Wastewater Management Entities shall
					maintain a Commission-required reserve account as a separate company bank
					account. All revenue derived from reserve rate riders approved by the PSC shall
					be deposited into such reserve account monthly. Withdrawals from reserve bank
					accounts shall be restricted to interceptor tank pumping and equipment
					replacements, including associated labor costs unless otherwise approved by the
					Commission. Such reserve accounts shall be used for all sewer system equipment
					replacements including equipment located on customer premises.
(9) Wastewater system facilities furnished by
					project developers and property owners to Wastewater Management Entities shall
					be recognized as Contributions in Aid of Construction in accordance with
					Internal Revenue Code rules and regulations.
(10) Titling of Wastewater System Property
(a) The components of the wastewater sewage
					treatment plant, collection system and disposal system shall be the property of
					the wastewater management entity.
(b) The wastewater sewerage treatment plant,
					collection system and disposal area may be situated within easements. Such
					easements may be located within the common area of the subdivision or
					condominium, or on privately held real property in the name of the wastewater
					management entity, or held in trust.