Connecticut Administrative Code › Title 16 - Public Service Companies › 262o - Rate Surcharges for Water Company Acquisitions › Section 16-262o-1 - Definitions

Current through July 10, 2024
For purposes of Sections
				16-262o-2
				through
				16-262o-8
				of the regulations:
(a) "Department"
			 shall mean the Department of Public Utility Control.
(b) "Water Company" shall include every
			 corporation, company, association, joint stock association, partnership,
			 municipality, other entity or person, or lessee thereof, owning, leasing,
			 maintaining, operating, managing or controlling any pond, lake, reservoir,
			 stream, well or distributing plant or system employed for the purpose of
			 supplying water to not less than fifteen service connections or twenty-five
			 persons nor more than two hundred fifty service connections or one thousand
			 persons on a regular basis.
(c)
			 "Acquiring Water Company" shall mean the private entity determined by the
			 Department of Public Utility Control, in consultation with the Department of
			 Health Services, to be most suitable to acquire a water company pursuant to
			 Section
			 16-262n
			 and subsection (a) of Section
			 16-262o
			 of the General Statutes of Connecticut.
(d) "Acquired Water Company" shall mean a
			 water company that the Department of Public Utility Control determines, in
			 consultation with the Department of Health Services pursuant to Section
			 16-262n
			 and subsection (a) of Section
			 16-262o
			 of the General Statutes of Connecticut, should or must be acquired by a private
			 entity to assure the availability and potability of water and the provision of
			 water at adequate volume and pressure to the persons served by the water
			 company.
(e) "Acquisition Costs"
			 shall include the amount of compensation for acquisition pursuant to Section
			 16-262q
			 of the General Statutes of Connecticut, any administrative costs, legal
			 expenses, any maintenance and repair costs expended prior to the date of
			 transfer, and liabilities assumed, related to the acquisition of the acquired
			 water company, and shall not include the original cost of the utility plant
			 less accumulated depreciation.
(f)
			 "Needed Improvements" shall mean the capital improvements necessary to
			 rehabilitate the acquired water company's system, pursuant to orders in the
			 proceeding in which acquisition of the acquired water company is ordered by the
			 Department of Public Utility Control, in consultation with the Department of
			 Health Services.
(g) "Rate
			 Surcharge" shall mean an amount, determined by the Department, applied to the
			 rates of the customers of the acquired water company or of the customers of
			 both the acquiring water company and the acquired water company, as determined
			 by the department, that would recover on a current basis the revenues necessary
			 to provide a net after-tax return on acquisition costs and expenditures for
			 needed improvements at a rate of return equivalent to that authorized for the
			 acquiring water company in its last general rate proceeding. A rate surcharge
			 may be revised on a quarterly basis pursuant to subsection (b) of Section
			 16-262o-6
			 of these Regulations.
(h) "Current
			 Basis" shall mean the time periods provided for surcharge applications in
			 section
			 16-262o-6
			 of these regulations.
(i) "Purchase
			 Price" shall mean, for the purpose of acquisitions ordered pursuant to Section
			 16-262n
			 and subsection (a) of Section
			 16-262o
			 of the General Statutes of Connecticut, and of the Uniform System of Accounts,
			 as codified in Sections
			 16-27-4,
			 16-27-5,
			 and
			 16-27-6
			 of the Regulations of Connecticut State Agencies, the amount of compensation
			 for the acquired water company determined in accordance with Section
			 16-262q
			 of the General Statutes of Connecticut, less the difference between the assets
			 and the liabilities per the books of the acquired water company, and less the
			 sum of the administrative costs, legal expenses, and maintenance and repair
			 costs expended prior to the date of transfer, related to the acquisition of the
			 acquired water company.
(j)
			 "Efficiency of Construction" shall include, for the purpose of determining
			 whether any expenditures for needed improvements should be disallowed pursuant
			 to subsection (g) of Section
			 16-262o-3
			 of these Regulations, the use of planned construction schedules, programmed
			 budgeting, and an allowance for lead-lag times in the letting out of bids, and
			 in the awarding of construction contracts.