New Jersey Administrative Code › Title 14 - PUBLIC UTILITIES › Chapter 9 - WATER AND WASTEWATER › Subchapter 11 - WASTEWATER SYSTEM IMPROVEMENT CHARGE › Section 14:9-11.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
For the purposes of this subchapter, the following words and
				  terms shall have the following meanings, unless the context clearly indicates
				  otherwise. Additional definitions that apply to this subchapter can be found at
				  N.J.A.C.
				  14:3-1.1.
"Adjusted weighted average cost of capital" does not include
				  short-term debt, so long as the wastewater utility does not have short-term
				  debt in its approved capital structure. The equity component of the pre-tax
				  adjusted weighted average cost of capital will be the equity rate approved by
				  the Board in the wastewater utility's most recent base rate case, however, the
				  approved embedded cost of debt will be adjusted semi-annually, to reflect the
				  actual embedded cost of debt at the end of the WSIC recovery period, never to
				  exceed the actual embedded cost of debt approved in the last base rate
				  case.
"Base spending" means the level of investment equal to the
				  wastewater utility's depreciation expense for utility plant accounts: Account
				  No. 320-Service Connections, Traps and Accessories, Account No. 321-Collecting
				  Mains & Accessories, and Account No. 323 - Force Mains, as reported in the
				  wastewater utility's most recent annual report to the Board, at the time the
				  foundational filing is submitted. The investments eligible for inclusion in
				  base spending are the same as set forth at N.J.A.C. 14:9-11.3(a).
"Depreciation expense" on the WSIC assets means the amount of
				  the total of all eligible investments multiplied by the weighted composite
				  depreciation rate on those assets.
"Eligible investment in WSIC projects" means the total of the
				  applicable in-service projects under this program, less the base spending
				  requirement.
"In-service" means when a WSIC-eligible project has been
				  replaced/rehabilitated and is functioning in its intended purpose. It is in use
				  (that is, not under construction) and useful (that is, actively helping the
				  utility to provide safe, adequate, and proper service).
"Pre-tax adjusted weighted average cost of capital" means the
				  adjusted weighted average cost of capital calculated on a pre-income tax
				  basis.
"Restoration costs" means costs necessary to restore
				  construction to preconstruction condition, or as dictated by State, Federal, or
				  municipal laws, rules, ordinances, orders, or regulations, including, but not
				  limited to, paving, sidewalks, curbing, landscaping, and traffic control costs
				  for WSIC-eligible projects approved in a foundational filing.
"Revenue factor" means a gross-up for the associated revenue
				  taxes, uncollectibles, BPU assessment, and Division of Rate Counsel assessment,
				  adjusted to properly reflect the revenue required to generate the agreed upon
				  rate of return.
"Wastewater System Improvement Charge" or "WSIC" means the
				  charge developed in accordance with this subchapter. Once implemented, the WSIC
				  continues in effect until new base rates become effective for the wastewater
				  utility, consistent with the requirements of this subchapter.
"Wastewater utility" has the meaning assigned to this term in
				  the Board's water and wastewater rules at
				  N.J.A.C.
				  14:9-1.2.
"WSIC cap" or "cap" means the maximum amount of annual WSIC
				  revenues that a wastewater utility can recover during the period the WSIC rate
				  is in effect, through the assessment or surcharge computed in accordance with
				  the requirements of this subchapter. The cap is established by calculating five
				  percent of the wastewater utility's total revenues as established in the most
				  recent base rate decision. The outcome of that calculation establishes the
				  maximum revenue requirement recovery level for which a wastewater utility can
				  seek recovery through the WSIC.
"WSIC-eligible projects" mean wastewater system projects and
				  projected costs that:
1. Are limited to non-revenue producing wastewater projects,
				  such as replacement or rehabilitation of sewer lines (including structural and
				  non-structural lining projects), grouting and sealing of sewer line joints;
				  replacement or rehabilitation of sewer laterals, manholes, force mains; and
				  sewer lines, manholes, and sewer lateral relocations (or other utility owned
				  sewer assets) stemming from coordination with government entities;
2. Are included in the appropriate foundational filing or
				  semi-annual filing made by the wastewater utility with the Board, and approved
				  by the Board, as set forth at N.J.A.C. 14:9-11.4, and/or the semi-annual WSIC
				  reconciliation filing, as set forth at N.J.A.C. 14:9-11.5;
3. Are in excess of the wastewater utility's base spending;
				  and
4. The costs of which are not already being recovered through
				  current base rates, as set by the wastewater utility's most recently concluded
				  base rate case proceeding.
"WSIC filing" means the filing made by a wastewater utility
				  for each WSIC recovery period as specified at N.J.A.C. 14:9-11.5. WSIC filings
				  shall contain actual data for the WSIC recovery period and are expected to be
				  made approximately semi-annually.
"WSIC period" means the period of time between the effective
				  date of the foundational filing and the rate effective date of the next base
				  rate case.
"WSIC rate" means the amount of the assessment added to
				  customers' bills, calculated in accordance with the requirements of this
				  subchapter, which will be assessed on the basis of meter charges or other Board
				  approved charges. This rate is reviewed by the Board and reset to zero in a
				  wastewater utility's base rate case.
"WSIC recovery period" means each period during which
				  WSIC-eligible projects are to be completed and put into service followed by a
				  WSIC filing.
"WSIC revenue requirement recovery amount" means the total
				  eligible amount to be recovered through the WSIC charge as calculated pursuant
				  to N.J.A.C. 14:9-11.9.