§ 39-15.1-4 - Optional multi-year rate plans.
SECTION 39-15.1-4
§ 39-15.1-4 Optional multi-year rateplans. – (a) Water suppliers may, at their discretion, file with the commission a rateplan for a period not to exceed six (6) years, which rate plans shall set forthproposed rates:
(1) That are adequate, as described in subsection39-15.1-3(a) of this chapter, to pay for all reasonable costs of serviceassociated with water supply during the period of the plan, and may includeprojections of cost increases, and are equitable as described in subsection39-15.1-3(b);
(2) That attribute the cost of increased seasonal demand tocustomers that contribute to increased seasonal demand and that may includeconservation pricing pursuant to subsection 39-15.1-3(d);
(3) That provide for infrastructure maintenance, repair, andreplacement, especially in order to meet goals for reduction of leakage and theaccounting of non-billed water, that are included in a water supply systemmanagement plan; and
(4) That provide for the establishment and maintenance ofoperating reserves, capital reserves, and debt service reserves as described insubsection 39-15.1-3(a);
(b) The commission shall approve or reasonably amend the planand the rates proposed therein;
(c) A water supplier with a multi-year plan approved by thecommission may change its rates consistent with provisions of the plan,provided that a forty-five (45) day notice is given to the commission and thedivision, which notice shall state the amount of the proposed rate changes, themanner in which the proposed rate is consistent with the approved plan, and thepurpose of the proposed rate change. The proposed rate change shall beeffective sixty (60) days after the notice to the commission and the division,unless the commission shall decide that the proposed rate increase may beunreasonable or inconsistent with the approved plan, in which case thecommission shall hold a hearing on the proposed rate increase and may approve,or reasonably amend the proposed rate increase. Notwithstanding the foregoingnotice provision, the commission shall be bound by the suspension period setforth in section 39-3-11.
(d) A water supplier may petition the commission for amodification to an approved plan, and the commission in hearing and decidingthe petition need only consider those portions or elements of the plan affectedby the proposed modification. The commission shall approve or reasonably modifythe proposed modification. An approved modification shall become part of theplan for purposes of subsection (c) of this section.
(e) Each water supplier with an approved plan shall reportannually to the commission and the division with regard to performance underthe plan, including rates, revenues derived from rates, expenditures necessaryto pay for all reasonable costs of service; and the level and status ofoperating reserves, capital reserves, and debt service reserves.