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

65-407 C.M.R. ch. 675, § 4

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