Connecticut Administrative Code › Title 16 - Public Service Companies › 262o - Rate Surcharges for Water Company Acquisitions › Section 16-262o-5 - Components of application

Current through July 10, 2024
(a) Any acquiring
			 water company applying for a rate surcharge shall submit to the Department the
			 following:
(1) If not previously submitted,
			 the documentation and evidence listed in Section
			 16-262o-4.
(2) A complete description of and supporting
			 documentation for any acquisition costs to be recovered by the
			 surcharge.
(3) Details of the
			 results of open bidding on each component of the needed improvements and final
			 bid prices and the basis for selection of the contractor(s); open bidding on
			 each component of the needed improvements is encouraged, and shall be required
			 for any component exceeding $50,000.00 in actual construction costs, exclusive
			 of the effects of federal and state taxes, unless the work is performed by the
			 acquiring water company.
(4) For
			 work performed by the acquiring water company, copies of invoices and other
			 documentation, including time records, for actual expenditures on needed
			 improvements.
(5) A complete
			 description of the needed improvements, broken down by appropriate elements of
			 work and cost, to permit demonstration of the percentage of completion as the
			 work progresses; the description of the needed improvements shall be updated in
			 each quarterly period when a revision in the amount of the surcharge is
			 requested, including any additional work performed, the basis for the
			 additional work, and associated costs, separately described for the applicable
			 quarterly period or periods.
(6) A
			 construction schedule for the entire project indicating appropriate
			 construction phases, including a graphic representation of each component of
			 each phase, with estimated start and completion dates for each phase as
			 available.
(7) A summary of
			 construction expenditures covering the applied for quarterly period as shown on
			 the project work order or orders, and broken down into corresponding job
			 element or elements of the construction schedule.
(8) A letter from the acquiring water
			 company's independent accountant which states that the additions to the plant
			 account during the affected quarterly period have been reviewed and found to be
			 in accordance with the applicable uniform system of accounts.
(9) The computation of the total amount of
			 the surcharge showing 100% of the acquisition costs and 90% of the amount shown
			 in subdivisions (7) and (8) above, the rate of return allowed in the applicant
			 company's most recent rate case, or, if the rates of the acquiring company are
			 set by the Department other than on the basis of rate base, a computation using
			 the method employed by the Department in the last rate case of the acquiring
			 water company, and the appropriate revenue adjustments for state and federal
			 taxes.
(10) The schedule of charges
			 arising from the inclusion of acquisition costs and needed improvements in the
			 rate base as allocated across the board on a rate structure basis, including a
			 full explanation of the basis for allocation between classes of customers, with
			 any background work papers used.