Section 48:19-35 - Recovered revenues, RESEIC rate, calculationa. The revenues to be recovered through the RESIC rate shall be calculated as follows:(1) the eligible net investment shall equal the eligible investment, less the per-book accumulated depreciation amount recorded for the eligible projects, and adjusted for the recorded accumulated deferred income tax amount for the eligible projects;(2) the eligible net investment shall be multiplied by the pre-tax adjusted weighted average cost of capital, plus depreciation expense, the sum of which shall be multiplied by the revenue factor, plus or minus the RESIC under-recovery or over-recovery amount, the product of which shall equal the RESIC revenue requirement recovery amount; and(3) the RESIC revenue requirement recovery amount shall be divided by the number of meters and meter equivalents, weighted by meter capacity ratio, the product of which shall equal the RESIC rate per customer.b.(1) The revenues to be recovered through the RESIC rate shall not exceed the RESIC-cap, which amount shall not exceed a maximum percent, as set forth in paragraph (2) of this subsection, of the utility's total annual revenue, as established in the utility's most recent base rate decision, and such revenues shall be adjusted in accordance with a purchased water or wastewater adjustment clause approved by the board pursuant to chapter 9 of Title 14 of the New Jersey Administrative Code.(2) The RESIC-cap shall not exceed the following amounts, subject to the methodology set forth in paragraph (1) of this subsection:(a) at the time of the utility's initial foundational filing, two and one-half percent of the utility's total annual revenue;(b) at the time of the utility's second foundational filing, three and one-half percent of the utility's total annual revenue;(c) at the time of the utility's third foundational filing, four and one-half percent of the utility's total annual revenue; and(d) for each foundational filing thereafter, five percent of the utility's total annual revenue.Added by L. 2023, c. 315,s. 7, eff. 1/16/2024.