26 Del. Admin. Code § 2001
1.1 Authorization Of Rules
The Public Service Commission Law of Delaware vests in the Public Service Commission the authority to formulate standards for such water service and facilities as it deems necessary to carry out the provisions of this law. (26 Del.C. §209)
1.2 Application Of Rules
There are herein set forth those regulations which shall apply to any public water utility operating within the State of Delaware, under the jurisdiction of the Public Service Commission. These regulations shall become effective ninety (90) days after adoption by the Commission, and shall supersede Commission Order No. 101 dated January 10, 1952.
1.3 Definitions
The following words or terms, when used in these regulations, shall have the meaning indicated, unless the context otherwise requires:
2.1 Availability Of Records
All books, accounts, papers, records, and memoranda required by these rules or necessary for the administration thereof, shall be open and available for examination by the Commission or its authorized representatives at all times.
2.2 Retention Of Records
All books, accounts, papers, records, and memoranda required by these rules shall be preserved for a minimum period of three (3) years.
2.3 Location
All books, accounts, papers, records, and memoranda required by these rules shall be kept in an office within this State, and shall not be removed from this State, except upon such terms and conditions as may be prescribed by the Commission. This provision shall not apply if the utility is engaged in interstate commerce, whose accounts are kept at its principal office outside this State. However, such utility, when required by the Commission, shall furnish to same, certified copies of its books, accounts, papers, records, and memoranda relating to the business done by such public utility.
2.4 Information To Be Filed With The Commission
2.4.4 System Map(s). Each utility shall file with the Commission a map showing the utility's water system, scale 1" = 1 mile or less, e.g. 1" = 2000 feet. Such map shall be revised annually unless such revision is unnecessary in which event the utility shall notify the Commission that the map on file is current. The map should show:
2.4.5 Persons to Contact.Each utility shall file with the Commission and shall notify its customers upon request, of the name, title, business address, and telephone number of the person(s) who should be contacted in connection with the following areas of operation:
2.4.7 Reports of Service Interruption. Each utility shall file with the Commission a monthly report of any interruptions in service within ten (10) days after the end of any month in which an interruption occurred. Negative reports are also required after the end of any month in which no interruptions occurred. Reports shall include:
2.4.7.4 when known, the cause for interruption.
Each utility shall file with the Commission, and keep current, a copy of its approved tariff.
2.5 Complaints
2.5.1 Each utility shall keep a record of each complaint received. The complaint record shall contain:
2.5.3 Disputes. No customer shall be disconnected when a dispute over a billing statement is under investigation.
2.6 Meter Records
2.6.1 Meter reading sheets, cards, or records from which billing statements are prepared shall contain:
2.6.4 Testing Records.Each utility shall maintain test records on each meter, which shall include the following:
3.1 Authorization For Operation Or Construction
No individual, corporation, firm, partnership, association, company, cooperative, joint stock company or association, or any other form of business enterprise shall commence any construction of a water system for public use without having been granted a Certificate of Public Convenience and Necessity, and such other permits as may by required by law. System expansion, even within the certificated area, shall not commence without approval of the plans by the State Board of Health.
3.2 Water Plant Operation
3.2.2 Sources of Supply.The well casings and vents shall be constructed and maintained to prevent contamination. Unused wells shall be capped and abandoned wells filled. The source of supply shall be:
3.2.4 Ground-Water. All ground-water withdrawal points shall be located a "safe distance"* from sources of pollution., e.g., septic tanks, sewage disposal facilities, sewers, farm animals, fertilizers, and pesticides, unless adequate treatment is provided to render the water in compliance with the State Board of Health standards. All ground-water supplies should receive treatment prior to domestic use.
*Safe Distance - under the most adverse conditions no contamination or pollution would occur.
The utility's water plant shall be constructed, installed, maintained, and operated in accordance with current engineering practices in the water industry, to assure, as far as reasonably possible, continuity of service, uniformity in the quality of service furnished, and the safety of persons and property. The entire water plant systems shall be free from sanitary defects. Distribution systems must be designed and operated for a continuous positive pressure.
3.3 Storage
3.3.3 Maintenance. Reservoirs shall be drained, cleaned, and disinfected as often as necessary to maintain tank integrity and water quality.
When storage is involved, maintenance must be performed at regularly scheduled intervals to protect against contamination, corrosion, or other deterioration.
3.4 Water Plant Inspection
3.5 Design And Construction
3.5.3 Common Trenches. No pipe shall be placed in the same trench with a sewer or nonpotable water line.
When crossing, or where in close proximity, water lines shall be placed higher than sewer or nonpotable water lines or measures taken to protect the water supply from possible contamination.
3.5.4 Valves. The distribution system shall have sufficient valving so that areas may be isolated with a minimum number of customer services being affected during times of repairs or maintenance. When feasible, valves should be provided at intervals not to exceed one continuous block or 500 feet, whichever is greater, except where a dead-end run is not intended to serve any intervening customers.
3.5.11 Pressure. The distribution system and piping shall be designed in such a manner that the pressure at a customer's service connection shall be:
3.5.12 Fire Protection on New Systems. As to any water system installed or extended after January 1, 1988, no utility shall charge for or hold itself out as providing fire protection in an area where it does not provide from each hydrant, operating independently, a flow in excess of five hundred (500) gallons per minute with a minimum of twenty (20) pounds per square inch (PSI) residual pressure remaining for a duration of at least two (2) hours. Such flow must be in addition to average domestic water service demand on the system.
3.5.12.2 All hydrants shall be inspected and operated at least every three (3) years and after each use within five (5) working days upon notification to the utility. Particular attention shall be paid to the general condition of the hydrant to include:
3.5.13 Fire Protection on Existing Systems. As of January 1, 1988, all water systems with five (5) hydrants shall, within one hundred eighty (180) days of that date, file with the Commission:
The design and construction of the system and the components thereof shall conform to the requirements of the State Health Department and the AWWA standards.
3.6 Service Pipe
3.6.2 Customer Valve. The control of the water supply by the customer shall be by means of a separate valve, located on the downstream side of the meter.
There should also be a suitable valve installed in the customer's system to permit full draining thereof.
The utility shall furnish, install, and maintain the service line and appurtenances thereto, up to the point where the water enters facilities or pipes owned and maintained by the customer.
The customer shall be responsible for furnishing, installing, and maintaining the service line from the pipe owned and maintained by the utility to the place of consumption on his premises.
3.7 Pressure Requirement Exceptions
3.7.1 Water pressure outside the limits specified will not be considered a noncompliance item when the variations:
3.7.3 Pressure Surveys. Each utility having more than 100 customers shall have at least one portable pressure recording gauge.
3.7.4 Survey Records. Pressure survey records shall be retained and available for inspection. Each pressure record shall include:
3.8 Contributions In-aid-of Construction And Advances
3.8.1 CIAC Requirement For Facilities Extensions
A utility shall require a CIAC when the request for a Facilities Extension will require the installation of pipe and/or associated utility plant. All charges henceforth to contractors, builders, developers, municipalities, homeowners, or other project sponsors, seeking the construction of water Facilities from a water utility company shall be in the form of a CIAC to be paid to the water utility as Category 1A, 1B and Category 2 costs, as computed under §§ 3.8.2 and 3.8.6, subject to true-up under § 3.8.8.
3.8.2 Computation Of CIAC
Category 1A Costs.
All on-site Facilities costs that are directly assignable to a specific project are Category 1A costs and shall be designated by the utility and paid for by the contractor, builder, developer, municipality, homeowner, or other project sponsor, as CIAC, with no refunds. These costs include such items as Mains, hydrants, treatment plants, wells, pump stations, storage facilities, and shall include any other items that are necessary for the provision of utility water service. The cost of a Facilities Extension from the furthest point of the project site up to a point 100 feet beyond the boundary of the project (in the direction of the utility’s existing Main) shall be considered a Category 1A Cost.
Category 1B Costs.
All off-site Facilities costs that are directly assignable to a specific project from such point 100 feet beyond the boundary of the project and continuing to the utility’s existing Main are Category 1B Costs and shall be designated by the utility and funded by the contractor, builder, developer, municipality, homeowner, or other project sponsor, as a CIAC not subject to refund. These costs include such items as Mains, hydrants, treatment plants, wells, pump stations, storage facilities, and shall include any other items that are necessary for the provision of utility water service. Notwithstanding the foregoing, Category 1B Costs shall not include, and the utility shall be entitled to pay for and include in its rate base, any additional Facilities costs elected to be incurred by the utility in connection with the Facilities Extension for company betterment. In determining whether Category 1B Costs are directly assignable to a project, or elected as company betterment, the CIAC shall be calculated based on the cost of installing Mains using a minimum of 8 inch diameter pipe, provided, however,that where Mains of a larger diameter are required by applicable laws, building or fire codes, or engineering standards to provide water service to the project on a stand-alone basis, the CIAC shall be calculated based on the cost of installing Mains using such larger diameter pipe.
Category 2 Costs.
Category 2 Costs refer to transmission, supply, treatment and/or other utility, plant costs that are not directly assignable to a specific project or where the Category 1 costs have not included sufficient direct costs for transmission, supply, treatment, and/or other utility plant costs to supply water to the project. The contractor, builder, developer, municipality, homeowner or other project sponsor shall pay $1,500 per single family residential water meter service for their portion of transmission, supply, treatment and/or other utility plant costs made available by the water utility. These costs will be contributed by the contractor, builder, developer, municipality, homeowner, or other project sponsor, as CIAC, with no refunds. Within one hundred and twenty (120) days following the effective date of these regulations, each water utility shall file with the Commission proposed tariff pages containing the charges it will impose for Category 2 costs for single family residential and other types of metered water service. Such charges shall be determined based on meter size or another objective factor. The utility may account for such amounts by applying such amounts to pay for or offset any capital costs, including new and/or replacement plant, whether incurred in connection with the project or otherwise. The utility shall be entitled to hold amounts received as Category 2 Costs, and defer accounting for them as CIAC, until such amounts are actually used to fund capital improvements, at which time the utility shall be entitled to account for the Category 2 Costs as CIAC to the extent it is able to make offsetting entries to the utility’s plant accounts.
3.8.3 Advances
An Advance may consist of the following components:
3.8.4 Refunds Of Advances
By April 30th of each year, the utility will refund a portion of the Advance representing each additional customer connected during the previous calendar year based on a standard formula developed by the utility (the "net refund amount") plus the tax savings, if any, which the utility receives from deducting the Advance refund payment (the sum of which is referred to as the "gross refund amount"). In no event shall the total amount refunded by a utility (the sum of the gross refund amounts) exceed the amount received by such utility as an Advance (as finally determined by the utility after compliance with Rule 3.8.8). At the end of the negotiated refund period, no further refunds or payments will be made. If, at the end of such refund period, an Advance has not been fully refunded, the remaining un-refunded Advance will be considered a CIAC and will be treated for accounting and ratemaking purposes as a CIAC. The utility and the person(s) making the Advance shall determine the period in which the refund of the Advance may occur, but such period shall not exceed five (5) years.
3.8.5 Ratemaking Treatment Of Advances
An Advance will be considered as a non-taxable transaction for ratemaking purposes since the income taxes, if required, will be provided by the person(s) making the Advance.
3.8.6 Gross Up Of CIAC
A CIAC will consist of an amount equal to the entire estimated cost, including the utility’s standard overhead costs, of constructing the Facilities Extension. If any portion of property contributed by the contractor, builder, developer, municipality, homeowner, or other project sponsor is deemed taxable income to the utility, the utility shall be permitted to gross up the amount of the CIAC to include such tax liability.
3.8.7 Ratemaking Treatment Of CIAC
The Federal and State income taxes, if required, associated with the CIAC and paid by the utility receiving the CIAC, may be added to rate base, at which time the utility will have an opportunity to earn a fair return on this amount.
3.8.8 True-Up Of Contributions And Advances
Where the estimated amount of the CIAC or Advance exceeds the finally determined cost of the Facilities Extension or New Services, that excess amount shall be returned to the person making the CIAC or Advance.
Where the estimated amount of the CIAC or Advance falls short of the finally determined cost of the Facilities Extension or New Services, that shortage amount shall be paid to the utility by the person making the CIAC or Advance.
3.8.9 Miscellaneous; Class A Water Utilities Affected; Prospective Application; Reopening Of Docket
3.8.9.1 The regulations governing CIAC and Advances shall:
A utility shall require CIAC for Facilities Extensions to the extent provided in §§ 3.8.1 and 3.8.2 herein below. Nothing contained herein shall prevent a utility from requiring CIAC, or Advances, or neither, for the provision of New Services. Nothing herein shall prevent any utility from paying for, and including in its rate base, the costs of New Services.
3.9 Temporary Water Service
When temporary service is requested, the utility may require that the customer bear all the cost of installation and removal of the service in excess of any salvage to be realized. Any such agreement shall be documented.
3.10 Meters
3.10.1 Meter Installation. The meter shall be watertight and positioned in a horizontal plane with upstream and downstream shut-off valves allowing for adequate maintenance or removal. Meters shall be reasonably protected against frost, tampering, and mechanical damage. Meters shall be reasonably accessible for service, inspection, and reading. They should not be installed in such a manner that would pose an obstacle or hazard to customers or interfere with public safety.
3.10.2 Meter Condition. No meter shall be installed which is mechanically defective, has an incorrect correction factor, or which does not meet the above registration requirements.
The utility shall furnish, install, and maintain all metering devices used for recording or billing purposes. The applicant shall furnish, install, and maintain the required piping, valves, etc., for the meter setting.
Where feasible, all measuring devices used for billing purposes shall be installed to permit readings exterior to the premises to which service is supplied as per Title 26 Del.C. §211(d).
4.1 Right Of Access
The authorized agents or employees of the utility shall have the right of reasonable access to the premises supplied by their service, at reasonable hours, for the purpose of reading meters, examining fixtures and pipes, observing the manner of water usage, and for any other purpose which is proper and necessary in the conduct of the utility's business.
4.2 Meter Shop
4.2.2 Care in Handling. Extreme care should be exercised in the use and handling of standards to assure that their accuracy is not disturbed.
4.2.3 Calibrated Tank. At least one calibrated tank for volumetric measurement or a tank mounted upon scales for weight measurement of sufficient capacity to insure an acceptable determination of the utility's meter accuracy should be used. The testing of the tank and scales, used as a working standard for measuring meter accuracy, should be performed at a minimum as follows:
4.2.4 Each utility shall have in place, and implement, a program for the testing of its meters to ensure their accuracy. Such program shall consist of either:
4.2.4.1 The periodic testing of meters at intervals no longer than provided in the following schedule:
4.2.4.1.1 5/8 inch and 3/4 inch:
Once every 15 years
4.2.4.1.2 1 inch and 1-1/2 inch:
Once every 10 years
4.2.4.1.3 2 inch, 3 inch, and 4 inch:
Once every 3 years
4.2.4.1.4 6 inches and larger:
Once every year
or
4.2.5 Testing in General.The test of any unit of metering equipment shall consist of a comparison of its accuracy with the accuracy of a standard. All meters and/or associated devices tested shall be adjusted as closely as practicable to the condition of zero error.
All prescribed tolerances are to be interpreted as maximum permissible variations from the condition of zero error and no advantage of them shall be taken when making adjustments.
4.2.6 Tests to Determine Registration Error. For determination of minimum test flow and other normal test flows including the maximum, the utilities should adopt as their guide the appropriate standard specifications of the American Water Works Association for the various types and sizes of meters.
4.2.6.1 Meters shall be tested at the following three flow rates:
4.2.6.2 The formula used to determine the percentage error in registration is:
(Vol. by meter) - (Vol. by standard)
% error = 100 x (Vol. by standard)
where a positive percentage indicates a fast meter, while a negative indicates a slow meter.
4.2.7 Registration Error vs. Billing Adjustments. The error registration of a meter for billing adjustments shall be the arithmetic average of the error in registration at the following two rates of flow:
4.2.7.2 Approximately 50% of the maximum normal flow, or at maximum flow available at normal system pressure.
4.2.8 Request for Meter Test.Upon the request by the customer, the utility shall make a test of the accuracy of the registration of the meter serving his premises.
Each meter shop maintained or designated by a utility where meters may be inspected, tested, or repaired, shall be open for inspection by authorized representatives of the Commission at reasonable times.
5.1 System Safety Program
Each utility shall exercise reasonable care to reduce the hazards to which its employees, customers, and the general public may be subjected. A safety program should be adopted by each utility, fitted to the size and type of its operations.
6.1 Application For Service
6.1.7 Deposits.Each utility may require from any applicant or customer a reasonable deposit which will be applied against any unpaid balance due the utility for service at the time service is terminated.
6.1.8 Interest on Deposits. When a utility's tariff requires or permits the collection of a deposit from customers, the utility shall pay interest on all such deposits at the rate of six percent (6%) annual simple interest. Interest shall be computed from the date of receipt of the deposit by the utility.
All applications for service should be made, in writing, for the protection of the utility and the customer. It is the position of the Commission that, to the maximum extent possible, the customer should be the individual or entity responsible for payment for such service, therefore, service shall not be refused on the basis that the applicant is not the owner of the premises.
6.2 Billing Statements
Any billing statement shall include: the previous meter reading, as well as the current meter reading covering the period for which the billing is rendered; the date on which the meter was read; the amount of consumption for the billing period; the gross and/or net cash amount of the bill; the date by which the customer must pay the bill in order to benefit from any applicable discount or to avoid any penalty.
6.3 Billing Statement Adjustment
6.3.1 Fast Meters. Whenever a meter is tested and found to over-register more than two percent (2%), or such different percentage as prescribed in 3.10.1.1, the utility shall recalculate the bills for service for the last customer of record receiving service through the meter, and shall make an appropriate refund. The refund shall be for the period that the customer received service through the meter, but no longer than the periods established below:
Billing adjustments due to fast or slow meters shall be calculated on the premise that the meter should be 100% accurate. For the purpose of a billing adjustment, the error in registration of the meter shall be calculated and applied as specified in 4.2.6 and 4.2.7.
6.4 Denial Of Service Without Notice
The utility may discontinue service without notice for any of the reasons cited below, and service may not be restored until the cause for disconnection has been corrected.
A reasonable charge may be required by the utility, if allowed by tariff, for restoring service and also from customers who have been disconnected for unauthorized use of water. A customer whose service was disconnected or interrupted as the result of damage caused by that customer, or his agents, to the utility's equipment, may be charged the actual cost for repairs necessitated to reconnect the service.
6.5 Denial Of Service Requiring Notice
6.5.4 Non-Payment of Bill. Service may be discontinued with notice for non-payment of bill for service provided that:
6.5.4.2 non-payment resulted and no bona fide dispute exists under Section 2.5.2.
6.5.7 Waste of Water. Service may be discontinued with notice for the willful waste of water by the customer which includes the unnecessary or excessive use of water.
The utility may deny service for any of the following reasons listed below, provided the utility has notified the customer of its intent to deny service and has allowed the customer a reasonable period of time in which to correct or remove the cause for service denial. When service has been disconnected for any of the following reasons, a charge may be made for restoring service. Such reconnection charge shall not exceed five dollars ($5.00), unless the utility's tariff on file with the Commission indicates otherwise.
6.6 Insufficient Reasons For Denial Of Service
The following examples shall not constitute sufficient cause to refuse service or discontinue service to an applicant or customer:
6.7 Responsibility Of Utility Regarding Disconnection Of Service
6.7.1 Second Party Notification. Each water utility shall maintain a second party termination notice list. Each customer shall be offered the opportunity to designate a second party to be notified by the utility prior to termination of service for non-payment of a bill. No water utility shall be required to give notice to any second party, unless and until the second party has notified the utility, in writing, of willingness to accept such notice. By accepting second party status, the person to be so notified shall not incur any obligation whatsoever to the utility.
The utility shall not be liable for any property damage or inconvenience suffered by the customer as the result of the discontinuance of service where such discontinuance is permitted by these rules or tariffs filed with this Commission.
6.8 Restrictions/Curtailments On Water Usage
6.8.1 If a utility finds that it is necessary to curtail the use of water, it shall notify its customers and give the Commission written notice prior to effecting such restriction. Such notifications shall include:
6.8.1.4 The probable date such restriction may be terminated.
If the customer fails to comply with such curtailment on the use of water, service may be denied to that customer provided that he has been given notice, and a copy of such notice has been sent to the Commission.
6.8.3 Restrictions on Large-Use Customers. The utility may impose curtailments on the use of water by customers who use large quantities of water and, thereby, create conditions which would hinder the utility's providing adequate service to that customer or other customers.
Revised:
5 DE Reg. 1414 (01/01/02)