N.J. Admin. Code § 14:3-2A.6

Current through Register Vol. 56, No. 18, September 16, 2024

Section 14:3-2A.6 - Infrastructure Investment Program expenditure recovery

(a) A utility may file for annual or semi-annual rate recovery for facilities constructed and placed in service under an Infrastructure Investment Program. "In service" means when a project approved for inclusion in an Infrastructure Investment Program is functioning in its intended purpose, is in use (that is, not under construction) and useful (that is, actively helping the utility provide efficient service).

(b) Each filing made by a utility seeking accelerated recovery under an Infrastructure Investment Program shall seek recovery, at a minimum, of at least 10 percent of overall Infrastructure Investment Program expenditures.

(c) A utility's expenditures made prior to the Board's approval of an Infrastructure Investment Program shall not be eligible for accelerated recovery.

(d) Rates approved by the Board for recovery of expenditures under an Infrastructure Investment Program shall be accelerated, and recovered through a separate clause of the utility's Board-approved tariff.

(e) Rates approved by the Board for recovery of expenditures under an Infrastructure Investment Program shall be provisional, subject to refund and interest. Prudence of Infrastructure Investment Program expenditures shall be determined in the utility's next base rate case.

(f) A utility shall file its next base rate case not later than five years after the Board's approval of the Infrastructure Investment Program start date, although 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 accelerated recoveries during the approved Infrastructure Investment Program period notwithstanding the filing of the utility's next base rate case.

(h) An earnings test shall be required, where Return on Equity (ROE) shall be determined based on the actual net income of the utility for the most recent 12-month period divided by the average of the beginning and ending common equity balances for the corresponding period.

(i) For any Infrastructure Investment Program approved by the Board, if the calculated ROE exceeds the allowed ROE from the utility's last base rate case by 50 basis points or more, accelerated recovery shall not be allowed for the applicable filing period.

N.J. Admin. Code § 14:3-2A.6

Adopted by 50 N.J.R. 630(a), effective 1/16/2018