Rhode Island Code of Regulations › Title 216 - Department of health › Chapter 50 - Environmental health › Subchapter 05 - Water Quality › Part 7 - Clean Water Infrastructure Plans (216-RICR-50-05-7) › Section 216-RICR-50-05-7.8 - FINANCING INFRASTRUCTURE IMPROVEMENTS

Current through June 14, 2024
A. Each water
				  supplier subject to the requirements of this Part shall establish a separate
				  special account designated as the Infrastructure Replacement Fund to be held as
				  a restricted receipt account and to be administered by the water supplier
				  solely to implement and carry out the replacement or rehabilitation of
				  infrastructure in accordance with the approved plan. The dedicated account
				  should be invested in accordance with the standards established for the agency,
				  municipality, or water supplier.
B.
				  The costs of programs to implement infrastructure replacement shall be paid by
				  the users of the water system at a rate directly proportional to the users'
				  consumption of water. Charges shall be limited to those necessary and
				  reasonable for implementation of the plan. These charges shall be based upon
				  the annual funding requirements of the facility improvements necessitated over
				  each successive twenty (20) year period.
C. Interest earned on this account shall be
				  credited to this account only. Accumulated funds in excess of that estimated to
				  be necessary to implement the plan shall revert to the rate payers of the
				  system on a biannual basis. Funds will be allowed to accumulate with the intent
				  to build sufficient capital to finance the estimated costs of major projects.
				  It is understood that annual investments may be necessary over many years to
				  fund major projects. Funds accumulated that are in excess of that estimated to
				  implement the plan will cause the water supplier to reduce the future charges
				  for infrastructure replacement.
D.
				  Water suppliers may alternatively fund the infrastructure replacement program
				  through partial or complete external funding at the option of the water supply
				  system. Debt service and debt service issuance costs for any and all funding
				  shall be an eligible expense as part of the program's funding
				  requirements.
E. The Public
				  Utilities Commission, as to water suppliers within its jurisdiction, shall
				  permit an increase for just and reasonable infrastructure replacement in the
				  portion of the water suppliers' rate structure to comply with this Part and
				  shall allow the water supplier to add this required funding to its rate base in
				  accordance with this Part. Proposed increases in rates by regulated water
				  utilities to finance infrastructure improvements shall be filed and reviewed in
				  conformance with R.I. Gen. Laws Title 39.
F. The applicable section of the water
				  supplier's annual audit shall be submitted to the Department to verify
				  compliance with the funding intentions of the infrastructure replacement plan.
				  The dedicated fund for infrastructure replacement will be a separate line item
				  in the audit. Financial and summary status reports shall be submitted for each
				  on-going project which outlines funds spent on the project, funds remaining,
				  percentage of completion, and a brief description of work completed and work
				  remaining. Project expenditures must be consistent with the plan and be
				  eligible expenditures under the plan. Audits shall be submitted within 180 days
				  from the end of the water supplier's fiscal year. Extensions will be allowed
				  for reasonable cause.