65-407 C.M.R. ch. 675, § 4 - MAXIMUM FUNDS RECOVERED
A.
Temporary
Surcharge for Infrastructure Replacement or Repair
1.
Large water utilities. A
large water utility shall not implement or modify any Temporary Surcharge for
Infrastructure Replacement or Repair that would result in an increase in
revenue requirements greater than 3% of current revenue requirements, or if the
modification of a surcharge would result in an increase in revenue requirements
of greater than 10% over rates in effect after the last general rate increase;
2.
Medium water
utilities. A medium water utility shall not implement a or modify any
Temporary Surcharge for Infrastructure Replacement or Repair that would result
in an increase in revenue requirements greater than 5% of current revenue
requirements or if the modification of a surcharge would result in an increase
in revenue requirements of greater than 15% over rates in effect after the last
general rate increase;
3.
Small water utilities. A small water utility shall not implement
or modify any Temporary Surcharge for Infrastructure Replacement or Repair that
would result in an increase in revenue requirements greater than 7.5% of
current revenue requirements, or if the modification of a surcharge would
result in an increase in revenue requirements of greater than 20% over rates in
effect after the last general rate increase.
B.
Capital Reserve Accounts
1. The amount of a water utility's revenue
requirement attributed to funding a capital reserve account shall not exceed:
a. 1% of current gross utility plant if the
utility is a large water utility;
b. 3% of current gross utility plant if the
utility is a medium utility ; and
c. 5% of current gross utility plant if the
utility is a small water utility.
2. The amount of the utility's revenue
requirement attributed to fund a capital reserve account shall not exceed:
a. 10% if the utility is a large water
utility
b. 15% if the utility is a
medium water utility; and
c. 20%
if the utility is a small water utility.
Notes
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