Connecticut Administrative Code › Title 16 - Public Service Companies › 11 - Gas Companies Operating Within the State of Connecticut › Part III - QUALITY CONTROLEquipment, Standards, Records and Reports › Service Supplied by Water Companies › Section 16-11-61 - Plans for financing main extensions

Current through July 10, 2024
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.