N.J. Admin. Code § 14:3-8.9
Current through Register Vol. 56, No. 24, December 18, 2024
Section 14:3-8.9 - Suggested formulae for allocating extension costs-general provisions(b) If a regulated entity or applicant petitions the Board to apply the suggested formula in accordance with N.J.A.C. 14:3-8.5(a), to an extension to serve any type of development other than a single residential customer, Board staff shall apply the formula at N.J.A.C. 14:3-8.10. If a regulated entity or applicant requests that Board staff apply the suggested formula to an extension to serve only a single residential customer, Board staff shall apply the formula in N.J.A.C. 14:3-8.11.(c) For both types of formulae (single residential customer and other), the regulated entity may require the applicant to provide a deposit. The amount of the deposit shall be determined according to the provisions for multi-unit developments at N.J.A.C. 14:3-8.10 or for single residential customers at N.J.A.C. 14:3-8.11, as applicable. The regulated entity shall then construct the extension, and shall refund the portions of the deposit that are refundable under (g) below according to the formula set forth at N.J.A.C. 14:3-8.10 or 8.11, as applicable. (d) For purposes of determining the amount of the deposit and applying the suggested formula, the following shall apply: 1. The regulated entity shall estimate the cost of the extension in accordance with the applicable tariff, and shall add the tax consequences incurred by the regulated entity *pursuant to* the Internal Revenue Code as a result of receiving the deposit, as detailed at N.J.A.C. 14:3-8.6;2. The regulated entity shall assume that the electric service connection to each building will be at the nearest corner of the building to the point at which the service enters the property;3. If an applicant requests service that costs more than that which is standard under the regulated entity's and/or the industry's system design standards, or if an extension presents an unusual situation in which providing standard service is substantially more expensive than usual, the regulated entity may charge the applicant or the customer for the extra expense. In accordance with (h) below, this charge is not refundable. For example, for an underground extension, costs of pavement cutting and restoration, rock removal, blasting, or unusual or difficult digging conditions requiring equipment and methods not generally used may be charged to the applicant. In such a case, the regulated entity shall not charge the applicant more than the actual cost for the extra work required; and4. If the extension requires a regulated entity to pay an attachment charge for the use of utility poles located on private property and not owned by the regulated entity, the regulated entity may include the cost of the attachment charge when calculating the cost of the extension. (e) The regulated entity shall notify the applicant in writing of the actual cost of the extension within 30 days after the actual costs are known, and as soon as reasonably practical after construction is completed. As the application process and the construction proceeds, the amount of the deposit shall be adjusted as needed to reflect the actual cost. If the amount of the deposit exceeds actual costs at the completion of construction, the regulated entity shall return any excess. If the deposit is less than actual costs, the applicant shall provide the necessary additional funds to the regulated entity.(f) Any amount not refunded within 10 years after the date upon which the regulated entity is first ready to render service from the extension shall remain with the regulated entity. In no event shall a regulated entity refund more than the total deposit amount to the applicant.(g) The following portions of a deposit shall be refundable under the suggested formula: 1. For any extension, the cost of the portion of the extension that runs from existing infrastructure to the boundary of the property on which the new customers to be served are located (that is, to the subdivision gate; or for an individual lot, to the curb of the lot);2. For an extension of gas infrastructure, the cost of the portion of the extension that is within the boundary of the property or properties on which the new customers to be served are located;3. For an underground or overhead extension of electricity or telecommunications service, the amount it would cost to serve the customers overhead; and 4. Any tax consequences that are included in a deposit pursuant to N.J.A.C. 14:3-8.6.(h) The following portions of the deposit are nonrefundable and shall constitute a contribution in aid of construction (CIAC): 1. For all extensions, the cost of extra service, or of extra work required to provide standard service, in accordance with N.J.A.C. 14:3-8.9(d)3; and2. For an underground extension of electricity or telecommunications service, the additional cost for underground service over and above the amount it would cost to serve those customers overhead. This shall include the cost of any temporary overhead installation and/or removal under N.J.A.C. 14:3-8.4(h).N.J. Admin. Code § 14:3-8.9
Amended by 47 N.J.R. 3133(c), effective 12/21/2015Amended by 54 N.J.R. 1612(a), effective 8/15/2022