Ala. Admin. Code r. 770-X-9-.08
Current through Register Vol. 43, No. 1, October 31, 2024
Section 770-X-9-.08 - Standardized Financial Operations And Management(1) Wastewater Management Entities shall be established and exist as separate business entities and not as subsets or divisions of other business entities.(2) Wastewater Management Entities shall limit business activities to those allowed by their Commission-approved tariffs.(3) Wastewater Management Entities shall not contribute capital toward the initial design, equipment purchase, or construction of wastewater systems. Wastewater Management Entities shall not borrow against wastewater system assets or in any manner pledge such assets as security without the prior written approval of the Commission.(4) Wastewater Management Entity contracts with project developers shall contain provisions formulated to ensure wastewater systems are designed and constructed properly using methods and equipment of industry standard quality. ADPH Minimum Construction and Testing Standards for Cluster Wastewater Systems shall be used as a benchmark for industry standards. In addition, contract provisions shall require project developers to compensate Wastewater Management Entities for inspection, permitting, and other expenses incurred during the planning and construction stages of wastewater systems as well as wastewater system operating expense shortfalls during project build-out. In general, all contracts to which an ME is a party shall be written to protect the interests of the ME and its ratepayers over time.(5) Wastewater Management Entities shall take whatever measures necessary to ensure that subdivision or development "Covenants to Run with the Land" are in place to protect their interest as the sewer service provider for the development.(6) Wastewater Management Entities shall employ all available avenues to collect vacant lot fees and sewer systems access fees when due. Whenever possible. Wastewater Management Entities should have arrangements in place with the local issuer of Certificates of Occupancy to delay move-in until all Wastewater Management Entity requirements are met and fees are paid. Wastewater Management Entities may initiate disconnection procedures with respect to residential lots and business establishments where vacant lot or system access fees are outstanding in accordance with the provisions of their standardized tariff on file with the PSC.(7) Wastewater Management Entities shall employ water shut-off valves and/or sewer poppers to be used for the purpose of disconnecting sewer service for non-payment.(8) Wastewater Management Entities shall maintain a Commission-required reserve account as a separate company bank account. All revenue derived from reserve rate riders approved by the PSC shall be deposited into such reserve account monthly. Withdrawals from reserve bank accounts shall be restricted to interceptor tank pumping and equipment replacements, including associated labor costs unless otherwise approved by the Commission. Such reserve accounts shall be used for all sewer system equipment replacements including equipment located on customer premises.(9) Wastewater system facilities furnished by project developers and property owners to Wastewater Management Entities shall be recognized as Contributions in Aid of Construction in accordance with Internal Revenue Code rules and regulations.(10) Titling of Wastewater System Property (a) The components of the wastewater sewage treatment plant, collection system and disposal system shall be the property of the wastewater management entity.(b) The wastewater sewerage treatment plant, collection system and disposal area may be situated within easements. Such easements may be located within the common area of the subdivision or condominium, or on privately held real property in the name of the wastewater management entity, or held in trust.Ala. Admin. Code r. 770-X-9-.08
Effective as Interim Rule: August 2009. Filed with LRS February 5, 2013. Filed for Codification in the Alabama Administrative Code by the Alabama Public Service Commission on February 5, 2013, pursuant to Code of Ala. 1975, § 41-22-7.Author: Alabama Public Service Commission
Statutory Authority:Code of Ala. 1975, §22-2 5B-6.