N.J. Admin. Code § 7:19-15.3

Current through Register Vol. 56, No. 21, November 4, 2024

Section 7:19-15.3 - Price resolution process

(a) Whenever during a water supply emergency a transfer of water has been made between one purveyor and one or more other purveyors, and the supplying water purveyor determines that additional cost recovery is required the following procedure shall be followed:

1. The supplying water purveyor, the receiving water purveyor and any other water purveyor whose facility was used to effectuate the transfer shall have 30 days from the date the supplying water purveyor gives notice that additional cost recovery is required to reach agreement as to the amount of additional charge.

(b) If the informal negotiation process is unsuccessful, any party may then file a written request for the initiation of formal proceedings to the Commissioner and the Board of Public Utilities where appropriate within 60 days of the ending date for negotiation specified in (a) above. Said request shall include:

1. The added charge the party is proposing;

2. Substantiated arguments supporting the charge; and

3. Any other pertinent data including but not limited to the following:

i. The extent to which, if any, there would be curtailment of use by regular customers of the supplying system as a result of the sharing of the resources, and concomitant loss of revenue;

ii. The cost to the supplying system which would not be incurred except for the fact that the transfer must be made and any other costs which the party believes should be attributed to the transfer, including a detailed explanation of cost calculation;

iii. All wholesale and retail rates (with terms and conditions):

(1) Charged by the supplying system to its customers;

(2) Paid by the receiving system to its suppliers; and

(3) Charged by the receiving system to its customers.

(c) The Commissioner or the Board of Public Utilities shall review the submitted requests, decide the fair compensation, and advise the parties.

(d) The actual transfer of water shall be accomplished in accordance with the order issued by the Department without regard to the time required for settlement of the added charge.

N.J. Admin. Code § 7:19-15.3