1. (a) Application requirements for a new water or wastewater system. An application to obtain a certificate of public convenience to become a certificated water public utility or a certificated wastewater public utility through a new water or wastewater system shall be submitted in writing on forms provided by the Commission in accordance with § 3.551 (relating to official forms) and shall be accompanied by information or documentation reasonably necessary to enable the Commission to determine if granting the application is in the public interest as prescribed by 66 Pa.C.S. § 1103. An application under this section must conform to § § 1.31 and 1.32 (relating to requirements for documentary filings; and filing specifications) and must include the following:

   1. (1) General information. Identify the following:

      1. (i) Name of applicant.
      2. (ii) Address.
      3. (iii) Affiliates that own or operate a public water system or a public wastewater system in this Commonwealth or any other jurisdiction.

   2. (2) Map of service territory. A map or plan of suitable scale and detail highlighting the boundaries of the proposed service territory, including the following:

      1. (i) A description by bearing angles and distances.
      2. (ii) The location and route of the proposed water system or proposed wastewater system, existing and proposed streets, streams and water surfaces, and the direction of flow of the existing and proposed water system or wastewater system.
      3. (iii) Topography and elevation, including the elevations of major facilities and service areas.
      4. (iv) A description of all nearby public water systems or public wastewater systems, including location, service areas, primary facilities, system capabilities, hydraulic profile and contact person and phone number.
      5. (v) Identification of current proposed and potential future service areas and that of neighboring public water systems.

   3. (3) Plant in service and general system information.

      1. (i) A proposed public utility shall provide the following:

         1. (A) Professional engineer’s reports and letters signed by a professional engineer.

            1. (I) A copy of the professional engineer’s report that includes design plans and a full description of the proposed water system or wastewater system with the size, quantities and materials of facilities and the manner, including the approximate time schedule for installation of the various facilities of the water system or wastewater system to be constructed in the proposed service territory.
            2. (II) A certification letter from a professional engineer that the subject water system was designed and constructed in compliance with § § 65.17 and 65.18 (relating to standards of design; and standards of construction).
         2. (B) A breakdown of the cost of construction, by major plant category, including the sources of funds used to construct the proposed water system or wastewater system.
         3. (C) A breakdown of pipe sizes, quantities and materials used for construction for all transmission and distribution or collection, conveyance and disposal facilities.
         4. (D) A valid certified operator’s certificate appropriate to the facilities to be operated.
         5. (E) The most recent 5-year DEP compliance of affiliates of the applicant that own or operate a public water system or a public wastewater system in this Commonwealth or any other jurisdiction with an explanation of each violation.

      2. (ii) An uncertificated entity shall provide the following:

         1. (A) The original cost, by year and major plant category, of used and useful plant in service and related accrued depreciation calculations.
         2. (B) A copy of the engineering report accompanied by a certification letter from a professional engineer that the water system was designed and constructed in compliance with § § 65.17 and 65.18.
         3. (C) All valid certified operator’s certificates appropriate to the facilities being operated.
         4. (D) The most recent 5-year compliance history with DEP with an explanation of each violation.

   4. (4) Information about customers. The applicant shall demonstrate its ability to provide adequate water public utility service or adequate wastewater public utility service to meet present and future customer demands.

      1. (i) A proposed public utility shall provide an estimate of the number of connections by customer class in the first year, fifth year and tenth year of proposed operation and anticipated completed development, as well as estimated water usage or estimated gallons of wastewater treated in each of those years.
      2. (ii) An uncertificated entity shall submit the number of connections by customer class at the time that the application is filed with the Commission and in the first year, fifth year and tenth year of proposed operation, as well as estimated water usage or gallons of wastewater treated in each of those years.

   5. (5) Information regarding rates.

      1. (i) A proposed public utility shall provide a proposed initial tariff that includes proposed rates, proposed rules and proposed conditions of service in the format specified by the Commission (classified rate schedule).
      2. (ii) An uncertificated entity shall provide a proposed initial tariff that includes proposed rates, proposed rules and proposed conditions of service. The uncertificated entity shall provide written notice to its customers indicating that it has filed an application for authority and the proposed rates in the application and shall provide a copy of this notice and a verification statement confirming that notice required under this section has been provided.

   6. (6) Cost of service.

      1. (i) A proposed public utility shall provide 1-year, 5-year and 10-year estimates of operating revenue, operation and maintenance expenses, annual depreciation and taxes. If operating income reflects a loss, the proposed public utility shall provide a detailed explanation of the source of funds to be used to subsidize the estimated losses in support of future viability.
      2. (ii) An uncertificated entity shall file its most recent Federal Income Tax Returns (corporation) or related Schedule C forms (partnership or sole proprietorship). It shall also provide its projected first-year operating revenue, operation and maintenance expenses, annual depreciation and taxes under its initial tariff. If the projected first-year operating revenue, operation and maintenance expenses, annual depreciation and taxes reflect a net operating loss, the uncertificated entity shall describe in detail how the operating loss will be subsidized, supported by an analysis of its future viability as a certificated public utility.

   7. (7) Information on affected water systems and wastewater systems. An applicant shall do the following:

      1. (i) Identify each operator of a municipally owned public water system or municipally owned public wastewater system that is providing water public utility service or wastewater public utility service within the municipality or municipalities in which the applicant seeks to become a certificated water public utility or a certificated wastewater public utility.
      2. (ii) Identify the other certificated water public utilities or certificated wastewater public utilities providing water public utility service or wastewater public utility service within the municipality or municipalities in which the applicant seeks to provide water public utility service or wastewater public utility service.
      3. (iii) Identify the other certificated water public utilities or municipally owned public water systems, or certificated wastewater public utilities or municipally owned wastewater systems, that are directly adjacent to, abut or are situated within one mile of the applicant’s proposed facilities.
      4. (iv) If one or more of the entities in subparagraphs (i)—(iii) asserts a willingness or interest in serving the territory directly, the applicant shall demonstrate that, when considering both the cost of service and the quality of service, the customers in the proposed service territory would be better served by the applicant than by another entity.

   8. (8) Metered service.

      1. (i) A proposed public utility shall submit evidence that the water sources and customers are metered in accordance with § 65.7 (relating to metered service).
      2. (ii) An uncertificated entity shall submit evidence that the water sources and customers that are metered or provide a plan for furnishing metered water service in the proposed service territory in accordance with § 65.7.

   9. (9) Design and compliance.

      1. (i) A copy of applicable DEP public water supply and dam safety permits or water quality management permits or NPDES permits issued under section 7 of the Pennsylvania Safe Drinking Water Act (35 P.S. § 721.7) and sections 6, 202, 207 and 501 of The Clean Streams Law (35 P.S. § § 691.6, 691.202, 691.207 and 691.501).

      2. (ii) A copy of the letter or letters signed by an authorized representative of the relevant governmental entity or entities confirming that the applicant does comply or does not meet all the applicable requirements. A signed letter from the governmental entity will be construed as evidence of the applicant’s proof of compliance or noncompliance with the following mandates:

         1. (A) Applicable design, construction and operation standards of DEP, including 25 Pa. Code § § 109.702, 109.703 and 109.709 (relating to operation and maintenance plan; facilities operation; and cross-connection control program) and 25 Pa. Code Chapter 92a (relating to National Pollutant Discharge Elimination System permitting, monitoring and compliance).
         2. (B) Applicable Act 537 Plan documents for all affected municipalities relating to the acquired service territory, as required under section 5 of the Pennsylvania Sewage Facilities Act (35 P.S. § 750.5).
         3. (C) Applicable design, construction and operation standards and requirements of the county health department.
         4. (D) The Delaware River Basin Commission, the Susquehanna River Basin Commission, the Ohio River Basin Commission and the Great Lakes Commission standards.
         5. (E) Applicable requirements of any Statewide water plan, including any local watershed areas.
         6. (F) Applicable requirements of any officially adopted county, multi-municipal or municipal comprehensive plan or plans, and applicable zoning designations and ordinances, including any necessary amendments.
2. (b) Filing. The applicant shall file with the Commission the original application and include a mode of payment as prescribed by § 1.42 (relating to mode of payment of fees) and in the amount delineated in § 1.43 (relating to schedule of fees payable to the Commission). The original application must contain the required information in subsection (a)(1)—(9) as exhibits. An affidavit of service showing the identity of those served under subsection (c) must accompany the original application filed with the Commission.

3. (c) Service.

   1. (1) At the time of filing, the applicant shall cause a complete copy of the application with exhibits to be served by registered mail or certified mail, return receipt requested, upon:

      1. (i) Each city, borough, town, township, county and related planning office which is included, in whole or in part, in the proposed service territory or service territories.
      2. (ii) The Commission’s Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate and DEP’s central office and regional office or offices for the proposed service territory or territories.
      3. (iii) Each certificated water public utility or certificated wastewater public utility whose service territory abuts or is within one mile of the service territory proposed in the application.
      4. (iv) A municipally owned public water system or municipally owned public wastewater system whose service territory abuts or is within one mile of the service territory proposed in the application.
      5. (v) The applicant must demonstrate that it has contacted each entity identified in subparagraphs (i) and (iv).
4. (d) Notice. The application will be docketed by the Secretary of the Commission and thereafter forwarded for publication in the Pennsylvania Bulletin. The applicant shall also publish notice of application, as supplied by the Secretary, once a week for 2 consecutive weeks in one newspaper of general circulation located in the service territory or territories covered by the application and shall submit proof of publication to the Commission. If the application includes a request to provide service in an area covered by a mandatory connection ordinance, the notice provided under this section shall include a conspicuous statement that such an ordinance applies.
5. (e) References. Subsection (a) supplements § 5.11 (relating to applications generally).

Authority

The provisions of this § 3.513 added under 66 Pa.C.S. § § 1101—1103.

Source

The provisions of this § 3.513 added September 26, 2025, effective January 26, 2026, 55 Pa.B. 6829.

Cross References

This section cited in 52 Pa. Code § 3.516 (relating to protests).