Section 3 AAC 52.815 - Long-term infrastructure improvement plan and asset optimization plan(a) Before filing an initial surcharge tariff, and at no less often than five-year intervals thereafter, an eligible water or wastewater utility shall file a long-term infrastructure improvement plan. The utility's plant improvement surcharge tariff must specify the minimum frequency and due date for filing long-term infrastructure improvement plans. (b) Within one year after filing an initial long-term infrastructure improvement plan, and annually thereafter, an eligible water or wastewater utility shall file an asset optimization plan. The utility's plant improvement surcharge tariff must specify the annual date on which the asset optimization plan will be filed.
(c) A long-term infrastructure improvement plan must include (1) a listing of the types and age of plant that the utility owns or operates, that the utility intends to improve, and for which the utility may propose to collect a surcharge; (2) a prioritized schedule for the planned improvement of listed plant; (3) a description of the location of the plant; (4) an estimate of the quantity, unit cost, and total value of the plant to be improved; (5) a projection of the annual expenditures necessary to implement the plan, including a description of the methods adopted to ensure that the plan is cost-effective; and (6) a description of how the plan will be implemented, with emphasis on the benefits of planned improvements, the extent to which the surcharge will allow improvements to be accelerated, and the expected impact the improvements will have on quality of service. (d) An asset optimization plan must include (1) a detailed description of the eligible plant improved in the preceding 12-month period under the utility's long-term infrastructure improvement plan and the prior year's asset optimization plan, if any; (2) a detailed description of all plant expected to be improved in the upcoming 12-month period; and (3) an explanation for any plant that was, or is expected to be, improved in a sequence or manner that is not consistent with either the most recent long-term infrastructure improvement plan or the prior year's asset optimization plan. (e) The commission staff shall review, and the commission may investigate, the long-term infrastructure improvement plan or the asset optimization plan for compliance with (1) the provisions of 3 AAC 52.800 - 3 AAC 52.890; (2) the uniform system of accounts established for water utilities under 3 AAC 48.277(a)(14) - (17) and for wastewater utilities under 3 AAC 48.277(a)(24) - (27), as applicable; (3) generally accepted accounting principals; and (4) reasonable management practices. (f) The commission may, after notice and an opportunity to be heard, terminate the collection of a surcharge and order the removal of the utility's plant improvement surcharge tariff provision if the commission finds that the utility is not in material compliance with the regulatory and accounting standards set out in (e) of this section.Eff. 6/29/2014, Register 210, July 2014Authority:AS 42.05.141
AS 42.05.151