§ 46-15.6-6 - Financing infrastructure replacement.
SECTION 46-15.6-6
§ 46-15.6-6 Financing infrastructurereplacement. – The cost of infrastructure replacement programs and indemnification as requiredby this chapter shall be financed as follows:
(1) The cost of programs to implement infrastructurereplacement shall be paid by the water users. The charges shall be limited tothose necessary and reasonable to undertake the actions required by thischapter. These charges shall be based upon the annual funding requirements ofthe facility improvements necessitated over each successive twenty (20) yearperiod. Interest earned on money in this infrastructure replacement fund shallbe credited to this infrastructure replacement fund.
(2) Each water supplier designated in § 46-15.6-3 shallestablish a special account designated as the infrastructure replacement fundto be held as a restricted receipt account and to be administered by the watersupplier solely to implement and carry out the replacement of infrastructure asrequired by this chapter.
(3) Any money which may accumulate in the infrastructurereplacement fund in excess of that needed to implement the annualinfrastructure replacement program or in excess of that exclusively pledged torepayment of outstanding bonds or notes or loan repayments to implement theinfrastructure replacement program shall revert to the rate payers of thatparticular system on a biannual basis.
(4) Each water supplier designated in § 46-15.6-3 may,as a complete or partial alternative to direct funding of its infrastructurereplacement program, finance its infrastructure replacement program throughbonding. The annual debt service of each bond or bonds shall be applied andcredited towards the annual requirement of the infrastructure replacementprogram's annual funding requirements.
(5) The Rhode Island public utilities commission, as to watersuppliers within its jurisdiction, shall permit an increase for just andreasonable infrastructure replacement in the portion of the water suppliers'rate structure to comply with this chapter and shall allow the water supplierto add this required funding to its rate base in accordance with this chapter.