N.J. Stat. tit. 48, ch. 19

in effect

N.J. Stat. § 48:19-5 Extension of chapter to companies filing certificate prior to January 1, 1920

Any company incorporated prior to April fifteenth, one thousand nine hundred and nineteen, under any other act of the legislature than this chapter, engaged on said date in supplying water for public or private use in any municipality in this state having a population of not more than fifteen thousand and which filed, prior to January first, one thousand nine hundred and twenty, a certificate of reincorporation in the manner prescribed by the act entitled "A supplement to an act entitled "An act for the construction, maintenance and operation of waterworks for the purpose of supplying cities, towns, townships, villages, boroughs and other municipalities in this state with water, and otherwise amending said act,' approved April twenty-first, one thousand eight hundred and seventy-six, as such title was amended by an act approved June twenty-second, one thousand nine hundred and six," approved April fifteenth, one thousand nine hundred and nineteen (L.1919, c. 194, p. 429), shall be deemed to be duly incorporated under this chapter and may continue to maintain, operate and extend its works, mains, pipes and appurtenances in the municipality in which the same are located, as if it had been duly authorized to do so in the manner prescribed in this chapter. Nothing herein contained shall be construed to limit or interfere with the right of any municipality where the works and appurtenances of any such company are located to regulate the manner of using the streets and public places therein by any such company for the purposes of its business.

N.J. Stat. § 48:19-6 Extension of chapter to companies filing certificate prior to January 1, 1926

Any company incorporated prior to March twelfth, one thousand nine hundred and twenty-five, under any other act of the legislature than this chapter, or any company incorporated under this chapter for the supplying of water to two or more municipalities, or any consolidated corporation which may have been formed by the consolidation of any such company or companies with each other and with any company or companies incorporated under this chapter, and which company or consolidated corporation was on March twelfth, one thousand nine hundred and twenty-five, engaged in supplying water for public or private use in one or more municipalities and which filed, prior to January first, one thousand nine hundred and twenty-six, a certificate of reincorporation in the manner prescribed by an act entitled "A supplement to an act entitled "An act for the construction, maintenance and operation of waterworks for the purpose of supplying cities, towns, townships, villages, boroughs and other municipalities in this state with water, and otherwise amending said act,' approved April twenty-first, one thousand eight hundred and seventy-six, as such title was amended by an act approved June twenty-second, one thousand nine hundred and six," approved March twelfth, one thousand nine hundred and twenty-five (L.1925, c. 68, p. 229), shall be deemed to be duly incorporated under this chapter and authorized to supply water for public and private use in such municipality or municipalities and to exercise all the rights and powers conferred by this chapter and may continue to maintain, operate and extend its works, mains, pipes and appurtenances in such municipality or municipalities. No such company or consolidated corporation shall be relieved of any duty or liability imposed upon it or existing at the time of the execution and filing of such certificate of reincorporation. Nothing herein contained shall be construed to limit or interfere with the right of any municipality where the works and appurtenances of any such company are located to regulate the manner of using the streets and public places therein by any such company for the purposes of its business.

N.J. Stat. § 48:19-7 Extension of chapter to companies filing certificate prior to January 1, 1934

Any company incorporated prior to April tenth, one thousand nine hundred and thirty-three, under any other act of the legislature than this chapter, or any company incorporated under this chapter for the supplying of water to two or more municipalities, or any consolidated corporation which may have been formed by the consolidation of any such company or companies with each other and with any company or companies incorporated under this chapter, and which company or consolidated corporation was on April tenth, one thousand nine hundred and thirty-three, engaged in supplying water for public or private use in one or more municipalities and which filed, prior to January first, one thousand nine hundred and thirty-four, a certificate of reincorporation in the manner prescribed by an act entitled "A supplement to an act entitled "An act for the construction, maintenance and operation of waterworks for the purpose of supplying cities, towns, townships, villages, boroughs and other municipalities in this state, with water, and otherwise amending said act,' approved April twenty-first, one thousand eight hundred and seventy-six, as such title was amended by an act approved June twenty-second, one thousand nine hundred and six," approved April tenth, one thousand nine hundred and thirty-three (L.1933, c. 98, p. 202), shall be deemed to be duly incorporated under this chapter and authorized to supply water for public and private use in such municipality or municipalities and to exercise all the rights and powers conferred by this chapter, and may continue to maintain, operate and extend its works, mains, pipes and appurtenances in such municipality or municipalities. No such company or consolidated corporation shall be relieved of any duty or liability imposed upon it, or existing at the time of the execution and filing of such certificate of reincorporation. Nothing herein contained shall be construed to limit or interfere with the right of any municipality where such works and appurtenances are located to regulate the manner of using the streets and public places therein by any such company for the purposes of its business.

N.J. Stat. § 48:19-8 Incorporation of certain companies recognized; powers

Any company, however incorporated, which on March twenty-second, one thousand nine hundred and thirty-four, was actually engaged in supplying one or more municipalities with water for public and private use, and which has filed in the office of the secretary of state a certificate approved by the board of public utility commissioners purporting to be under the act entitled "A supplement to an act entitled "An act for the construction, maintenance and operation of waterworks for the purpose of supplying cities, towns, townships, villages, boroughs and other municipalities in this state with water, and otherwise amending said act,' approved April twenty-first, one thousand eight hundred and seventy-six, as such title was amended by an act approved June twenty-second, one thousand nine hundred and six," approved April tenth, one thousand nine hundred and thirty-three (L.1933, c. 98, p. 202), shall be deemed to have become thereby duly incorporated and to be fully authorized to continue to supply water for public and private use in any and all municipalities then being supplied by such company, and said company shall be fully authorized to exercise all the rights and powers conferred by this chapter and may thereafter continue to maintain, operate and extend its works, mains, pipes and appurtenances in each of the municipalities being supplied.

N.J. Stat. § 48:19-11 Increase of capital; approval of public utility commission

Each water company in this State may increase its capital stock by and with the consent of 2/3 of the stockholders of the company and upon filing certificate of such action in the office of the Secretary of State. Nothing in this section contained shall be construed as authorizing any water company to issue any capital stock pursuant to this section until such company shall have first obtained authority so to do from the Board of Public Utility Commissioners in the manner provided by section 48:3-9 of this Title. Amended by L.1962, c. 198, s. 190.

N.J. Stat. § 48:19-13 General powers

Each water company organized under the laws of this State may take and divert sources of water supply and build, erect, alter, repair, enlarge and maintain reservoirs and works and may lay pipes and conduits and install facilities for water as shall be necessary and proper to enable the company to carry into effect the purposes of its incorporation. Amended by L.1962, c. 198, s. 191.

N.J. Stat. § 48:19-13.1 Membership fees of certain water companies

Notwithstanding the provisions of any law, rule or regulation to the contrary, any nonprofit, private water company, organized pursuant to Title 15 of the Revised Statutes for the purpose of supplying water to an unincorporated community within a county of the third class, may charge a membership fee or fees for any person becoming a member of such company after the effective date of this act. The amount of such membership fee or fees shall be determined by the company and shall not exceed $500.00. L.1965, c. 42, s. 1.

N.J. Stat. § 48:19-14 Entry on land

Each water company may enter upon any lands for the purpose of making all such preliminary examinations, explorations, measurements and levelings as may be necessary and proper for its corporate purposes, and subject to responsibility for all damages which shall be done thereto. Amended by L.1962, c. 198, s. 192.

N.J. Stat. § 48:19-15.1 Condemnation; action against utility

Every water utility desiring to take, use or occupy any lands or to take or divert any spring or stream of water necessary for the rendition of its public utility service may exercise the power of eminent domain as provided in sections 48 and 49 hereof to acquire such lands, right and privileges. If the owner of any real estate shall not have given his consent in writing to the diversion, or diminution of such spring or stream, and the damage to the real estate by reason of such diversion or diminution shall not have been ascertained and paid pursuant to said chapter 1 of the Title 20, Eminent Domain, then the owner may, by action at law, recover any damages he may sustain by reason of such diversion or diminution. Nothing in this section shall be construed to limit or affect the power or jurisdiction of the Department of Conservation and Economic Development. L.1962, c. 198, s. 59.

N.J. Stat. § 48:19-17 Pipes in streets authorized; consent of public body; appeal

Each water company may lay its pipes beneath such public roads, streets, and places as it may deem necessary for its corporate purposes, free from all charge to be made by any person or body politic whatsoever for such privilege, and may also construct and maintain hydrants on and along such roads, streets and places, provided that the pipes shall be laid at least 3 feet below the surface and shall not in anywise unnecessarily obstruct or interfere with the public travel or damage public or private property. The consent of the public body charged with the repair and maintenance of such public roads, streets and places shall first be obtained. If such public body shall refuse or fail to give its consent, the water company may appeal to the Board of Public Utility Commissioners of the State of New Jersey. A hearing thereon shall be had on notice to all parties in interest, who shall be afforded an opportunity to be heard. If, after such hearing the Board of Public Utility Commissioners shall determine that the installation of such pipes or hydrants is reasonably necessary for the service, convenience or welfare of the public, the water company shall be authorized to proceed in accordance with such determination. Amended by L.1962, c. 198, s. 193; L.1966, c. 233, s. 1, eff. Aug. 10, 1966.

N.J. Stat. § 48:19-18 Sale of water, rates.

48:19-18. Each water company organized under the laws of this State may sell and dispose of the water issuing from its reservoirs, aqueducts or pipes for such rates and pursuant to such terms and conditions as are in accordance with its approved tariffs on file with the Board of Public Utilities, provided, however, as follows: No tariff shall be approved that provides for or allows the imposition of any standby fees or charges for any fire protection system to a residential customer served by a water service line of two inches or less in diameter. No tariff shall be approved that provides for or allows the imposition of any fees in excess of the cost of water actually used for any sprinkler system required to be installed in any residential health care facility pursuant to the "Health Care Facilities Planning Act," P.L.1971, c.136 (C.26:2H-1 et seq.) and regulations promulgated thereunder or in any rooming or boarding house pursuant to the "Rooming and Boarding House Act of 1979," P.L.1979, c.496 (C.55:13B-1 et al.) and regulations promulgated thereunder. Nothing herein shall preclude any water company from charging for the actual cost of water main connection. Nothing in this section shall preclude a water company from requiring separate dedicated service lines for fire protection. The water company may require that fire service lines be metered. Nothing in this section shall alter the liability for maintenance and repair of service lines which exists on the effective date of P.L.2003, c.278. Amended 1962, c.198, s.194; 1981, c.514, s.1; 2003, c.278, s.8.

N.J. Stat. § 48:19-18.1 Statement of amount of water sold in gallons on bill

Any bill or other statement presented by a person, firm, association, corporation, authority or governmental unit to a customer for water sold or supplied shall have the amount of water sold or supplied stated thereon in gallons or shall indicate thereon that 100 cubic feet of water equals 748 gallons. L.1973, c. 230, s. 1.

N.J. Stat. § 48:19-19 Contracts between companies for supply of water

Every water company organized under the laws of this State may contract with any company organized under any law of the State for a supply of water upon such terms and for such times as may be mutually agreed upon. Such companies may lay such supply mains and pipes as may be thought necessary to furnish such supply through any property upon obtaining the consent in writing of the owner thereof, or under the surface of any streets, roads, highways or public places, provided that the companies first obtain the consent by ordinance of the municipalities through which the mains and pipes are to be laid. The municipal body having control of such streets, roads, highways or public places shall designate the place therein where and the manner in which the pipes or mains shall be laid. Amended by L.1962, c. 198, s. 195.

N.J. Stat. § 48:19-20 Extension of works

Every aqueduct company which was on March 21, 1888, in existence under any special charter in this State and every water company incorporated under the law of this State, may add to and extend its works to and within any municipality to such extent as may be necessary to carry out its corporate purposes, provided municipal consent is obtained and approved by the Board of Public Utility Commissioners, and may take such lands and may divert such streams of water in the manner provided in chapter 3 of this Title as shall be necessary for that purpose. Nothing in this section shall empower any company to supply or furnish water within the corporate limits of a municipality of this State owning or controlling its water supply, without the permission of such municipality. Amended by L.1962, c. 198, s. 196.

N.J. Stat. § 48:19-22 Refund for failure to supply water

In case any water company of this state shall fail for more than five consecutive days during any period for which water rent is charged, collected or received, to supply water to a person who has paid such rents in advance, the water company shall refund to the consumer a portion of such rent proportioned to the time of the nonsupply. The word "consumer" herein shall be construed to include individuals, firms, private, public and municipal corporations furnished with water for any purpose other than that of motive power. This section shall not apply to any municipality owning or controlling its waterworks.

N.J. Stat. § 48:19-23 Municipal consents to formation of water companies validated

L.1906, c. 68, s. 2, p. 98 (C.S. p. 3636, s. 633), being section two of the act entitled "A supplement to an act entitled "An act for the construction, maintenance and operation of waterworks for the purpose of supplying cities, towns and villages of this state with water,' approved April twenty-first, eighteen hundred and seventy-six," approved April second, one thousand nine hundred and six, as amended by L.1912, c. 211, p. 328 (1924 Suppl. s. 136-633), approved March twenty-eighth, one thousand nine hundred and twelve, saved from repeal. [The above section, as amended, validates municipal consents theretofore granted to the formation of water companies, provided the approval of the state water policy commission is obtained.]

N.J. Stat. § 48:19-24 Incorporation and contracts of certain water companies validated

L.1906, c. 128, p. 238 (C.S. p. 3649, s. 675), entitled "An act validating the incorporation and proceedings of certain companies organized in townships for the construction, maintenance and operation of waterworks under an act entitled "An act for the construction, maintenance and operation of waterworks for the purpose of supplying cities, towns and villages of this state with water,' approved April twenty-first, one thousand eight hundred and seventy-six, and the several supplements thereto and amendments thereof," approved April nineteenth, one thousand nine hundred and six, saved from repeal. [This act validates the incorporation, contracts, bonds and obligations of certain water companies.]

N.J. Stat. § 48:19-25 Incorporation and powers of certain water companies validated

L.1926, c. 158, p. 263, entitled "A supplement to an act entitled "A supplement to an act entitled "An act for the construction, maintenance and operation of waterworks for the purpose of supplying cities, towns, townships, villages, boroughs and other municipalities in this state with water, and otherwise amending said act," approved April twenty-first, one thousand eight hundred and seventy-six, as such title was amended by an act approved June twenty-second, one thousand nine hundred and six,' approved March twelfth, one thousand nine hundred and twenty-five," approved March twenty-sixth, one thousand nine hundred and twenty-six, saved from repeal. [This act validates the incorporation and powers of water companies actually engaged in supplying water to municipalities and which have filed a proper certificate.]

N.J. Stat. § 48:19-26 Nonprofit senior citizen cooperative associations; exceptions from rules and laws on rates

The Board of Public Utility Commissioners is hereby authorized and empowered to grant exceptions from the literal requirements of those provisions of chapters 2, 3 and 19 of Title 48 of the Revised Statutes, or from any rules, regulations or procedures promulgated pursuant thereto, pertaining to the imposition or exaction of special, discriminatory or preferential rates or regulations or for the installation of metering devices, for determining any charges to be imposed by nonprofit water companies which are owned wholly by nonprofit senior citizen cooperative associations, and which provide service only to the members of such association. Such exceptions shall only be granted upon a finding by the board that the literal application of said aforementioned provisions in such cases is unnecessary for the protection of the public interest. L.1973, c. 160, s. 1, eff. June 7, 1973.

N.J. Stat. § 48:19-27 Applications for exception

An application for an exception authorized pursuant to the provisions of section 1 of this act shall be filed in writing with, and upon forms supplied by, the board, and shall contain such information as the board shall require. L.1973, c. 160, s. 2, eff. June 7, 1973.

N.J. Stat. § 48:19-28 Exceptions granted; record; public examination

The board shall maintain a record of all exceptions granted, and shall make such record reasonably available for public examination. L.1973, c. 160, s. 3, eff. June 7, 1973.

N.J. Stat. § 48:19-29 Definitions.

1. As used in P.L.2023, c.315 (C.48:19-29 et seq.): "Adjusted weighted average cost of capital" means the weighted average of the debt and equity components of a utility's capital structure, where the equity component shall equal the equity rate approved by the board in the utility's most recent base rate case and the debt component shall equal the approved embedded long-term cost of debt (LTD), which component shall be adjusted semi-annually to reflect the actual embedded cost of LTD at the end of the RESIC recovery period, and which component shall not include short-term debt. "Board" means the Board of Public Utilities or any successor agency. "Depreciation expense" means the amount equal to the total amount of RESIC eligible investments, multiplied by the weighted composite depreciation rate on those assets utilizing depreciation rates, as most recently approved by the board. "In-service" means when a RESIC-eligible project has been substantially completed, is functioning in its intended purpose, and is used and useful for the provision of utility service. "Pre-tax adjusted weighted average cost of capital" means the adjusted weighted average cost of capital calculated on a pre-income tax basis. "Requirement" means a decision or regulation imposed on a utility by the State, including any political subdivision thereof, or the federal government, in connection with any of the following: the "Federal Water Pollution Control Act Amendments of 1972" (33 U.S.C. s.1251 et seq.); the federal "Safe Drinking Water Act" (42 U.S.C. 300f et seq.); any other law, order, or regulation administered by the United States Environmental Protection Agency, the United States Army Corps of Engineers, the United States Department of Transportation, the United States Department of Homeland Security, the New Jersey Office of Homeland Security and Preparedness, the New Jersey Department of Transportation, or the New Jersey Department of Environmental Protection; or d. a regulation imposed by any local government unit related to the provision of water or wastewater service, or both, or imposing more stringent standards than those adopted by law. "RESIC" means the Resiliency and Environmental System Investment Charge program, established pursuant to P.L.2023, c.315 (C.48:19-29 et seq.). "RESIC-cap" or "cap" means the maximum amount of RESIC revenues that a utility may recover, during the period the RESIC rate is in effect, through the assessment or surcharge computed pursuant to P.L.2023, c.315 (C.48:19-29 et seq.). "RESIC-eligible project" or "eligible project" means a water or wastewater system project, or both, with projected costs that are: non-revenue producing; specifically identified by the utility within its petition in support of a RESIC; not already being recovered through current base rates, as set by the utility's most recent base rate case proceeding or through another infrastructure surcharge mechanism; and approved by the board for inclusion in a RESIC in response to the utility's petition. "RESIC filing" means the semi-annual filing made by a utility pursuant to section 4 of P.L.2023, c.315 (C.48:19-32) for each RESIC recovery period, which filing contains actual data for the RESIC recovery period. "RESIC period" means the period of time between the effective date of the foundational filing and the rate effective date of the next base rate case. "RESIC rate" means the surcharge added to a utility customer's bill, calculated pursuant to the provisions of P.L.2023, c.315 (C.48:19-29 et seq.), which rate shall be assessed on the basis of meter charges or meter equivalent basis, and which shall remain in effect for the duration of the RESIC period. "RESIC recovery period" means the six-month period preceding each RESIC filing submitted pursuant to subsection b. of section 4 of P.L.2023, c.315 (C.48:19-32), provided that the RESIC-eligible project for which filing is submitted shall be completed and in-service during this period. "RESIC revenue requirement recovery amount" means the total eligible amount to be recovered through the RESIC rate, as calculated pursuant to section 7 of P.L.2023, c.315 (C.48:19-35). "Restoration costs" means costs necessary to restore construction to preconstruction condition or as dictated by federal, State, county, or municipal laws, rules, ordinances, orders, or regulations, including, but not limited to, paving, sidewalks, curbing, landscaping, and traffic control costs for RESIC-eligible projects approved in a foundational filing. "Revenue factor" means a gross-up for the associated revenue taxes, uncollectibles, board assessment, and Division of Rate Counsel assessment, adjusted to properly reflect the revenue required to generate the agreed upon rate of return. "Utility" means a water utility and wastewater utility as defined in this section. "Wastewater treatment service" means the management of wastewater and includes any activity related to the collection, storage, transport, handling, delivery, processing, treatment, or disposal of wastewater, and other similar activities. "Wastewater utility" means an investor-owned public utility, as defined in R.S.48:2-13, that provides wastewater treatment service. "Water utility" means an investor-owned public utility, as defined in R.S.48:2-13, that provides water service, or a municipal public utility that provides water service to more than 1,000 billed customers in another municipality and charges a different rate to customers inside the municipality than it charges customers outside of the municipality. L.2023, c.315, s.1.

N.J. Stat. § 48:19-30 Utility, recovery, RESIC rate implementation.

2. a. A utility may seek recovery through the implementation of a RESIC rate for any cost made, or to be made, by a utility, which cost is related to the: (1) direct or indirect compliance with one or more requirements, including, but not limited to, addressing both existing and emerging chemical elements or compounds; (2) installation of new distribution, production, treatment, or other plant or equipment to further resiliency, health, safety, or environmental protection for the utility's customers or employees, or the public; (3) replacement of existing distribution, production, treatment, or other plant or equipment to maintain, enhance, or improve the existing resiliency, health, safety, or environmental protection of the utility's customers or employees, or the public; or (4) treatment media replacement, including granular activated carbon and anionic exchange resins, as well as new treatment media, and related tanks, pumps, instrumentation, controls, and electrical equipment for both existing and emerging chemical elements and compounds. b. Restoration costs associated with an eligible project pursuant to paragraph (1) of subsection a. of this section and approved through a utility's RESIC foundational filing, made pursuant to subsection b. of section 3 of P.L.2023, c.315 (C.48:19-31), may be recovered if the costs were incurred not more than 18 months after the eligible project's in-service date and were included in a normally scheduled semi-annual RESIC filing. c. Notwithstanding any provision of this section to the contrary, a utility may only seek recovery through the implementation of a RESIC rate for costs that may be recorded in the applicable accounts set forth in the uniform system of accounts adopted by the National Association of Regulatory Utility Commissioners for the following categories of expenses: lake, river, and other intakes; wells and springs; power generation equipment; pumping equipment; water treatment plant equipment; distribution reservoirs and standpipes; communication equipment; wastewater pumping equipment; wastewater treatment and disposal equipment; and wastewater communication equipment. L.2023, c.315, s.2.

N.J. Stat. § 48:19-31 RESIC implementation, board authorization.

3. a. (1) The board shall authorize the implementation of a RESIC by a utility to recover costs associated with RESIC-eligible projects through an approved RESIC rate. (2) A utility that offers more than one regulated service may file a joint petition to establish a RESIC that includes RESIC-eligible projects for multiple regulated services or separate petitions to establish a separate RESIC for water and wastewater services, respectively. If a utility files separate petitions, each RESIC approved by the board shall be subject to its own respective RESIC-cap. b. To obtain authorization to implement a RESIC, the utility shall submit a foundational filing to the board. Whether filed separately or concurrently with a base rate case, the utility shall submit the following information with the foundational filing: (1) projected annual capital expenditures on RESIC-eligible projects for a three-year period, identified by major categories of expenditures; (2) actual annual capital expenditures on RESIC-eligible projects for the previous three years, identified by major categories of expenditures; (3) an engineering evaluation and report identifying the specific projects to be included in the proposed RESIC, with descriptions of project objectives, detailed cost estimates, and the estimated in-service dates for each project; (4) vintage, condition, or other similarly relevant and reasonably available information about the eligible infrastructure that is being rehabilitated or replaced, if applicable; (5) a forecast of RESIC-eligible capital expenditures for a three-year period setting forth annual planned capital expenditures; (6) the maximum dollar amount, in aggregate, the utility seeks to recover through the RESIC under the foundational filing; and (7) the estimated rate impact of the proposed RESIC on customers of the utility. c. In considering a utility's foundational filing in support of a RESIC, the board may require the utility to provide any supplemental information that the board deems necessary to evaluate the utility's foundational filing. d. Before the board approves a RESIC, the board shall conduct a public hearing in the utility's service territory, notice of which shall contain the maximum dollar amount the utility seeks to recover through its RESIC and the utility's estimated rate impact. e. A RESIC foundational filing shall not be approved unless a utility has had its base rates set by the board within the past three years and any prior RESIC rate was reset to zero through the current or prior base rate case. After a utility's RESIC rate has been reset to zero, a new foundational filing shall be approved before a new RESIC rate recovery may occur. A RESIC foundational filing may be approved concurrently with the setting of new base rates. f. The board shall act on each foundational filing no later than 120 calendar days after receiving the completed filing, except that if the foundational filing is submitted concurrent with a base rate case or during the pendency of a base rate case, the board may delay action until the effective date of the board's approval of the base rate case. L.2023, c.315, s.3.

N.J. Stat. § 48:19-32 Subsequent RESIC filings, requirements.

4. a. Following board approval of the utility's foundational filing, each subsequent RESIC filing made by a utility shall include the following: (1) a detailed description of all RESIC-eligible projects placed in-service, which description shall clearly identify any projects that are carried over from a prior RESIC period or from a prior RESIC recovery period, any restoration costs sought for projects placed in-service, and the in-service date for the projects associated with the restoration costs; (2) aggregate information capturing blanket-type RESIC-eligible infrastructure, if any, to be rehabilitated or replaced and the actual annual costs of the blanket-type replacement programs; (3) a schedule comparing the: (a) total spending on RESIC-eligible projects to date for the RESIC recovery period and eligible project spending by foundational filing project identification number or blanket-project category; (b) actual cost of completed RESIC-eligible projects for the RESIC recovery period with the estimated costs for the projects contained in the most recent foundational filing or any amendment thereto; (c) in-service date of completed RESIC-eligible projects compared to the estimated in-service date of RESIC-eligible projects set forth in the foundational filing; and (d) actual revenues collected through the RESIC assessment, compared with the actual revenue requirement of the RESIC-eligible projects during the RESIC recovery period, and the resultant RESIC under- or over-recovery amounts; and (4) a proposed RESIC schedule outlining the RESIC rate, determined pursuant to P.L.2023, c.315 (C.48:19-29 et seq.), and detailed information demonstrating that the proposed RESIC rate meets those requirements. The schedule shall include either a proposed schedule for returning to customers any over-recovery in the prior RESIC recovery period, including interest at the adjusted weighted average cost of capital, or a proposed schedule for recovering from customers any under-recovery in the prior RESIC recovery period. The over-recovery, including interest, or under-recovery shall be credited or charged to customers during the next RESIC recovery period. This information shall support the RESIC rate calculation, with documentation, detailed financial analyses, and other relevant information, showing all assumptions and calculations. All supporting financial information shall be presented in a manner to allow the board to evaluate whether the calculations meet the requirements of P.L.2023, c.315 (C.48:19-29 et seq.). b. RESIC filings shall be filed with the board on a semi-annual basis, commencing six months after the effective date of the foundational filing. A utility shall submit a semi-annual RESIC filing to the board within 15 calendar days of the scheduled conclusion of the RESIC recovery period. A RESIC filing shall be reviewed by the board and the Division of Rate Counsel. The utility may recover the interim surcharge associated with the RESIC-eligible projects placed in-service, including restoration costs during the RESIC recovery period, beginning 45 calendar days after the receipt of the complete semi-annual RESIC filing. c. To the extent permitted under section 2 of P.L.2023, c.315 (C.48:19-30), a utility's expenditures made prior to the board's approval of a RESIC shall be eligible for cost recovery so long as the expenditures were included in the RESIC foundational filing. d. The semi-annual RESIC filings may include changes or updates to any information provided in the foundational filing, provided that the utility has a reasonable expectation that the change shall occur during the RESIC recovery period, which project changes may include, but shall not be limited to, additions, replacements, or deferral projects that are otherwise RESIC-eligible. e. Rates approved by the board for recovery of expenditures under a RESIC shall be: (1) accelerated and recovered through a separate clause of the utility's board-approved tariff; (2) subject to annual reconciliation based on a reconciliation period consisting of the 12 months completed prior to the utility's next RESIC filing. The revenue received through the RESIC rate for the reconciliation period shall be compared to the utility's costs associated with RESIC-eligible projects for that period. The difference between revenue and costs shall be recouped or credited, as appropriate, through the RESIC rate included in the RESIC filing; and (3) provisional and subject to refund and interest. The prudence of RESIC expenditures shall be determined by the board in the utility's next base rate case. f. A utility shall file its next rate base case not later than three years after the board's approval of the RESIC start date, except that the board, in its discretion, may require a utility to file its next base rate case within a shorter period. g. A utility may continue to file for cost recovery of RESIC-eligible projects during the approved RESIC period notwithstanding the filing of the utility's next base rate case. L.2023, c.315, s.4.

N.J. Stat. § 48:19-33 RESIC-eligible project plant additions, base rate case.

5. a. If RESIC-eligible project plant additions are placed in-service during the test year of a utility's base rate case, and the plant additions are not recovered as part of a routine RESIC filing, then the plant additions shall be considered as part of the base rate case proceeding and included in the plant additions, consistent with existing board rules. b. Notwithstanding any other provisions of P.L.2023, c.315 (C.48:19-29 et seq.) to the contrary, a utility may continue to make RESIC-eligible investments and collect the RESIC rate during a pending rate case filed in accordance with existing board rules. c. RESIC rates shall be included in base rates during a utility's subsequent base rate case, and the RESIC rate shall be reset to zero. L.2023, c.315, s.5.

N.J. Stat. § 48:19-34 Carryover costs, RESIC-cap calculation.

6. a. All carryover costs permitted by this section and included in a RESIC rate shall be included in the calculation of the RESIC-cap. b. Notwithstanding any other provision of this section to the contrary, when a utility has commenced work on a RESIC-eligible project, but the eligible project has not been placed in-service during the period captured under an initial foundational filing, the eligible project may be considered a valid RESIC-eligible project in a subsequent foundational filing that is filed with the board prior to the resetting of rates under the initial foundational filing when the RESIC-eligible project began. c. When a RESIC-eligible project is placed in-service by a utility between the close of the test year and the effective date of rates in the base rate case, the utility may recover the costs of the project, as authorized by a board order approving a foundational filing, in the first RESIC filing under the board's new foundational filing order and included in the RESIC-cap. d. Unrecovered restoration costs of a project that was placed in-service during one foundational filing may be carried over and recovered in a subsequent foundational filing and included in a timely semi-annual RESIC filing, provided that the restoration costs shall otherwise be within the timeframe set forth in P.L.2023, c.315 (C.48:19-29 et seq.). L.2023, c.315, s.6.

N.J. Stat. § 48:19-35 Recovered revenues, RESEIC rate, calculation.

7. a. 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. L.2023, c.315, s.7.

N.J. Stat. § 48:19-36 Utility, board-approved RESIC, identify, list amount owed by customer, separate, utility bill.

8. a. If a utility has a board-approved RESIC, the utility shall identify and list the amount owed by the customer, based on the RESIC rate calculated in accordance with section 7 of P.L.2023, c.315 (C.48:19-35), separately on a customer's utility bill. The RESIC rate shall be reflected in bills issued on and after the effective date of the first RESIC filing and may be adjusted on the basis of subsequent RESIC filings, no more frequently than every six months, up to an amount not to exceed the RESIC-cap over the RESIC period. b. A customer's bill shall reflect the RESIC rate calculated pursuant to paragraph (3) of subsection a. of section 7 of P.L.2023, c.315 (C.48:19-35). L.2023, c.315, s.8.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026