New Jersey Administrative Code › Title 14 - PUBLIC UTILITIES › Chapter 3 - ALL UTILITIES › Subchapter 8 - EXTENSIONS TO PROVIDE REGULATED SERVICES › Section 14:3-8.5 - General provisions regarding costs of extensions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The
				cost that an applicant pays a regulated entity for an extension shall be
				determined by mutual agreement between the regulated entity and the applicant.
				If a regulated entity and an applicant cannot agree on the applicant's cost of
				an extension, a deposit, or a non-refundable contribution, either party may
				petition the Board to apply the suggested formula set forth at
				14:3-8.9, 8.10, or 8.11, as
				applicable.
(b) Except for certain
				underground extensions covered by
				14:3-2.1(f), an
				extension shall become the property of the regulated entity upon its
				completion. If an extension is paid for by an applicant in accordance with this
				chapter, a regulated entity shall include the extension in its contribution in
				aid of construction (CIAC) accounts, for accounting purposes only. The
				regulated entity shall record such a contribution in a manner consistent with
				the Uniform System of Accounts, 18 CFR Part 101, which is incorporated herein
				by reference in this subchapter. Amounts that a regulated entity receives in
				accordance with this subchapter, which are not refunded to an applicant, shall
				be credited to the appropriate plant account or accounts.
(c) The cost of an extension for which a
				regulated entity receives a deposit, or receives a non-refundable contribution,
				shall include the tax consequences incurred by the regulated entity as a result
				of receiving deposits under the Tax Reform Act of 1986, in accordance with
				14:3-8.6.
(d) Regulated entities, customers,
				applicants, developers, builders, municipal bodies, and other persons shall
				cooperate fully in order to facilitate construction of an extension at the
				lowest reasonable cost consistent with system reliability and safety. This
				includes sharing trenches, where practicable, allowing the applicant, where
				practicable, to dig the portion of the trench located on the property to be
				served, and coordinating scheduling and other aspects of construction to
				minimize delays and to avoid difficult conditions, such as frozen or unstable
				soils. If the applicant elects to dig the portion of the trench located on the
				property to be served, the applicant is responsible for ensuring that the
				excavation is done in accordance with utility/utilities standards and that the
				resulting trench complies with utility/utilities standards. Whether using an
				individual trench, a shared trench, or applicant-dug trench, a utility shall
				not place an extension within a trench unless the trench complies with the
				appropriate utility/utilities standards. A municipality shall not impose an
				ordinance or other requirement that conflicts with this subchapter or which
				would prevent or interfere with another person's compliance with this
				subchapter.
(e) Each regulated
				entity shall submit for Board approval a proposed tariff containing charges for
				services, including installation of underground service. The regulated entity
				shall periodically submit updated tariffs on its own initiative or as requested
				by the Board. A tariff shall not require an applicant for an extension to pay a
				deposit or non-refundable contribution that is greater than would be required
				under the suggested formula at
				N.J.A.C.
				14:3-8.9, 8.10, or 8.11, as applicable. A
				tariff shall not provide for a deposit refund that is less than would be
				required under the suggested formula at
				N.J.A.C.
				14:3-8.9, 8.10, or 8.11, as
				applicable.
(f) If a regulated
				entity requires that the applicant pay a deposit or non-refundable
				contribution, the regulated entity shall first provide the applicant with all
				of the following information, in writing:
1. A
				detailed estimate of the total cost of the extension, including:
i. An itemization of the number of units of
				each item required to build the extension (for example, the number of feet of
				wire, feet of pipe, feet of conduit, feet of trench, number of transformers,
				number of valves, and number of labor hours);
ii. The cost per unit for each item listed
				under (f)1i above, multiplied by the number of units of that item;
				and
iii. The sum of all items in
				(f)1ii. This sum shall equal the total estimated cost of the
				extension;