N.J. Admin. Code § 7:1J-3.5 - Other reductions in amount eligible for compensation from Fund

Current through Register Vol. 54, No. 7, April 4, 2022

(a) If the water supply system which is the subject of the claim is to be operated by a private water purveyor, the aggregate amount eligible for compensation from the Fund for such water supply system shall be reduced by an amount calculated in accordance with the Board of Public Utilities' All Utilities rules at N.J.A.C. 14:3-8.
(b) If the claimant is the water purveyor, the amount eligible for compensation from the Fund shall be reduced further by the surplus debt service payments received by the water purveyor, calculated as follows:
(DSP) (NR)
SDSP = ----------
ER

where:

1. SDSP represents the surplus debt service payments;
2. DSP equals the aggregate amount of the payments due on all debt obligations of the water purveyor reflected in the computation of the water purveyor's rates, and incurred before the making of the WSSC, which payments are due during the period beginning on the date on which water service commences to new ratepayers not previously served by the water purveyor before the construction of the water supply system which is the subject of the claim, and ending on the first anniversary of the effective date of the water purveyor's rates in effect as of the commencement of such service;
3. NR equals the number of new ratepayers served by the new water supply system, who were not served by such water purveyor before the construction of such facilities; and
4. ER equals the number of existing ratepayers served by the water purveyor immediately prior to the making of the WSSC.
(c) No portion of the cost of any water supply system which had been installed or for which installation had begun before the discharge, and which commences operation after the discharge, shall be eligible for compensation from the Fund.
(d) If all or part of the cost of any water supply system has been paid from the Fund, no part of the cost incurred in connection with any replacement equipment for such system shall be eligible for compensation from the Fund. If, as a result of an error or omission in the design, construction, installation or operation of a water supply system, corrective action (including, without limitation, the installation of replacement or additional equipment) is necessary for proper operation of the water supply system, no part of the cost of such corrective action shall be eligible for compensation from the Fund.
(e) Costs required under Board of Public Utilities (BPU) regulations: No costs which a water purveyor is required to incur under regulations promulgated by the BPU (including, without limitation, the cost of the work to be done under 14:9-2.1 upon making service connections) shall be eligible for compensation from the Fund. The cost of the installation of a water meter is eligible for compensation from the Fund.
(f) If the water purveyor or a government entity has charged fees or other costs for connecting individual properties to the water supply system which is the subject of the claim, the amount of the water purveyor or government entity's claim, eligible for compensation from the Fund shall be reduced by the aggregate amount of such fees or costs.
(g) With respect to any connection fee or tapping fee which the claimant pays for connection of any property to the water system, only the portion of such fee which represents the actual cost of the physical connection shall be eligible for compensation from the Fund. Any portion of such fee which represents other amounts allowed under 40:14B-21 is ineligible for compensation from the Fund.

Notes

N.J. Admin. Code § 7:1J-3.5
Amended by R.1998 d.67, effective 1/20/1998.
See: 29 N.J.R. 4365(a), 29 N.J.R. 4594(a), 30 N.J.R. 336(b).
Amended by R.2009 d.75, effective 3/2/2009.
See: 40 N.J.R. 5101(a), 41 N.J.R. 1019(a).
Rewrote (a); and in (e), deleted "the cost of meters required to be provided under N.J.A.C. 14:3-4.1, and" following "limitation,", and inserted the last sentence.

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