56-265.13:6 - Public hearing on application; prohibition of multiple rate increases within any 12-month perio...
§ 56-265.13:6. Public hearing on application; prohibition of multiple rateincreases within any 12-month period.
A. Upon application to the Commission by at least 25 percent of all customersaffected by a rate change or by 250 affected customers, whichever number islesser, or by the small water or sewer utility itself, or by the Commission,upon its own motion, a hearing shall be held after at least 30 days' noticeto the small water or sewer utility and to its customers. The Commission mayorder such improvements or changes in service, measurements, practices, acts,rates, charges, fees, and rules and regulations of such utility as are justand reasonable.
When a hearing is ordered, the Commission shall have the authority to suspendsuch rates, charges, fees, and rules and regulations for no more than 60 daysor to declare them to be interim, or both. Interim rates, fees, and chargesshall be subject to refund with interest until such time as the Commissionhas made its final determination in the proceeding. Upon completion of thehearing and decision, the Commission may order such public utility to refund,with interest at a rate set by the Commission, the portion of such rates,charges, or fees found not justified by its decision.
B. A small water or sewer utility shall not implement an increase in theutility's rates or charges more than once within any 12-month period. Thislimitation shall not prohibit applications for increases in rates or chargespursuant to § 56-245.
C. If the change in rates, fees, and charges results in an increase of 50percent or greater of the small water or sewer utility's annual revenues, thesmall water or sewer utility shall file the financial data required by theCommission's rules under this chapter simultaneously with providing notice ofsuch change as prescribed by subsection B of § 56-265.13:5, and, if a hearingis ordered, the Commission shall expedite the hearing on the change in rates,fees, and charges. The Commission shall also direct that the funds producedby the increase in rates, fees, and charges shall be held in escrow by thesmall water or sewer utility until the Commission has rendered its decision,at which time the funds held in escrow shall either be released to the smallwater or sewer utility or refunded to its customers. The Commission may,however, allow the funds held in escrow to be used as necessary to complywith environmental or health laws or regulations or to allow the small wateror sewer utility to provide adequate service to its customers.
(1986, c. 323; 1990, cc. 410, 431; 1994, c. 313; 1996, c. 15; 2003, c. 385.)