New Jersey Administrative Code › Title 14 - PUBLIC UTILITIES › Chapter 3 - ALL UTILITIES › Subchapter 8 - EXTENSIONS TO PROVIDE REGULATED SERVICES › Section 14:3-8.10 - Suggested formula for allocating extension costs-multi-unit or nonresidential development

Current through Register Vol. 56, No. 14, July 15, 2024
(a) This section
				governs how Board staff will apply the suggested formula to the cost of an
				extension that is not covered by the provisions for extensions to a single
				residential customer at
				N.J.A.C.
				14:3-8.11. The requirements in this section
				apply in addition to the general provisions for the suggested formulae at
				N.J.A.C.
				14:3-8.9. This section does not address how
				deposits, non-refundable contributions, and refunds will be grossed up to
				reflect the tax consequences incurred by the regulated entity *pursuant to* the
				Internal Revenue Code, which is addressed at
				N.J.A.C.
				14:3-8.6. This section does not set forth the
				cost of an extension, but merely governs the allocation of those costs between
				the utility and the applicant for the extension.
(b) The deposit required for an extension
				subject to this section shall be the cost of the extension required to serve
				the development. Prior to construction of the extension, the regulated entity
				shall notify the applicant in writing of its estimated cost to construct an
				extension to serve the development for which service is requested.
(c) For purposes of calculating the amount of
				the deposit, the development for which service is requested shall be determined
				by reference to the subdivision map approved by the applicable local
				authorities. If a development is to be approved and constructed in phases, the
				applicant shall indicate which phases are to be treated as separate
				developments prior to commencement of installation of service for purposes of
				determining the deposit and applying the suggested formula. Any cost estimates
				shall be recalculated to reflect the division of the project into phases prior
				to commencement of the installation of service and new cost estimates shall be
				provided.
(d) As each customer
				begins receiving services, the regulated entity shall issue to the applicant an
				initial "startup" refund of a portion of the deposit. For each customer, this
				customer "startup" refund shall be the estimated annual distribution revenue
				that will result from the customer, multiplied by 10 for gas, electric and
				telecommunications regulated entities, and 2.5 for water and wastewater
				regulated entities. If additional customers who were not originally anticipated
				are supplied from this extension, the regulated entity shall:
1. Estimate the actual cost of the extension
				required to bring service to the customer from the nearest existing
				infrastructure;
2. Estimate the
				annual distribution revenue that will be derived from the customer, and
				multiply it by 10 for gas, electric, and telecommunications regulated
				industries and 2.5 for water and wastewater regulated industries to obtain the
				estimated distribution revenue over the applicable multi-year period;
3. Subtract the estimated cost of the
				extension determined under (d)1 above from the applicable multi-year period
				distribution revenue determined under (d)2 above;
4. Refund the amount determined in (d)3 above
				to the original applicant when the customer begins receiving service, if the
				amount determined in (d)3 above is a positive number. This "startup" refund
				shall be in addition to the annual refunds described in this section;
				and
5. Provide additional refunds
				to the original applicant if the actual annual distribution revenue from these
				additional customers exceeds the estimated annual distribution revenue from
				these customers. These additional refunds shall be made by including these
				customers in the refund calculations made pursuant to (f) and (g)
				below.