N.J. Admin. Code § 14:9-6.10

Current through Register Vol. 56, No. 24, December 18, 2024

Section 14:9-6.10 - Proposed joint takeover order

(a) Upon receipt of the entire record of the joint public hearing, the joint hearing report, and any written comments on the report received during the comment period required under N.J.A.C. 14:9-6.8(p), the Department and the Board shall jointly issue a proposed order, which shall require either the acquisition of the small water and/or sewer company, or termination of procedures under the Act.

(b) If the Board and the Department do not order the acquisition of the small water and/or sewer company, they shall order the termination of procedures under the Act.

(c) If the Department and the Board find that the improvement and acquisition costs, as defined at N.J.A.C. 14:9-6.2, are necessary and reasonable, the Department and the Board shall issue a proposed joint takeover order for the acquisition of the non-complying small water company and/or small sewer company by the most suitable entity.

(d) The proposed joint takeover order shall:

1. Designate an acquiring entity;

2. Address improvement and acquisition costs;

3. Include an action by the Board subject to refund which provides, upon the order becoming final, for the inclusion in the acquiring entity's rates of the anticipated costs of improvements required under N.J.A.C. 14:9-6.1 3(a). This inclusion shall be accomplished immediately or, if the acquiring entity chooses to defer determination of acquisition costs, it shall be accomplished as soon after these costs are determined as is practicable and feasible consistent with N.J.A.C. 14:9-6.1 1; and

4. Include tariffs approved by the Board under N.J.A.C. 14:1-5.

(e) If the Board has determined that customers shall pay for some or all of the anticipated improvement costs, the proposed joint takeover order shall require that improvements be considered contributions in aid of construction (CIAC) in all future rate cases. Separate records shall be maintained as to contributions occurring under this process.

(f) If the Department and the Board issue a proposed joint takeover order, the Board may, if necessary, issue an order:

1. Extending or transferring the franchise area of the acquiring entity to cover the service area of the non-complying small water company and/or small sewer company;

2. Revoking any service franchise previously issued by the Board to the small water company and/or small sewer company; and

3. Rendering the owner or operator of the company or companies presumptively unfit to hold any other water or sewer franchise, or municipal consent to provide water or sewer service.

(g) The Board staff shall serve the proposed joint takeover order by personal service or certified mail upon the following:

1. The noncomplying small water company and/or small sewer company;

2. The owner and operator of the noncomplying small water company and/or small sewer company, if different from (g)1 above;

3. The acquiring public or private entity; and

4. Rate Counsel.

(h) The Department staff and Board staff shall mail the proposed joint takeover order or otherwise make it available to all persons who testified or submitted written information at the joint public hearing, or who submitted timely written comments on the joint hearing report.

N.J. Admin. Code § 14:9-6.10

Amended by R.2006 d.367, effective 10/16/2006.
See: 38 N.J.R. 1538(a), 38 N.J.R. 4490(b).
Section was "Joint takeover order by the Department and BPU". Rewrote the section.
Amended by R.2014 d.049, effective 3/17/2014.
See: 45 N.J.R. 2174(a), 46 N.J.R. 550(a).
In (g)2, substituted "(g)1" for "(h)1".