§ 65.58. Pro forma tariff or tariff supplement requirements.
An entity’s pro forma tariff or tariff supplement containing proposed changes necessary to implement the entity’s LSLR program must address, at a minimum:
(a) LSLR program annual cap.
An entity’s pro forma tariff or tariff supplement must include a cap on the number of customer-owned LSLs that can be replaced annually.
(b) Service line demarcation.
(1) An entity’s pro forma tariff or tariff supplement must include a definition for customer-owned LSL for purposes of the entity’s LSLR program that is consistent with § 65.52 (relating to definitions).
(2) An entity may specify in its tariff or tariff supplement that, if a shutoff valve is not located along a specific length of pipe within a structure, the entity may install a shutoff valve to serve as a point of demarcation between the property’s service line and the property’s interior water distribution piping.
(3) An entity shall perfect its ownership of the portion of the service line located within the then-existing right-of-way in conformance with its Commission-approved tariff to ensure that the entity can obtain necessary permits during the planning phase of a LSLR project.
(c) Partial LSLRs. An entity shall specify as follows in its pro forma tariff or tariff supplement:
(1) Neither a customer nor a property owner may install a partial LSLR. A partial LSLR must result in termination of service until such time as the entity can replace the entity-owned LSL under § 65.62 (relating to prohibition on partial LSLRs).
(2) Where a customer or a property owner, if the customer is not the property owner, elects to replace the customer-owned LSL, the customer or property owner shall replace the customer-owned LSL concurrent with the entity replacing the entity-owned LSL, subject to the following:
(i) For a Class A public utility or an authority, the customer or property owner, if the customer is not the property owner, shall provide the public utility or authority at least 90 days’ notice prior to replacing the customer-owned LSL.
(ii) For a Class B or Class C public utility or a municipal corporation, the customer or property owner, if the customer is not the property owner, shall provide the public utility or municipal corporation at least 180 days’ notice prior to replacing the customer-owned LSLs.
(3) An entity may establish a process to address replacement of a customer-owned LSL to avoid termination of service when a property owner who is not the customer is nonresponsive to an entity’s offer to replace a customer-owned LSL.
(4) An entity shall not connect an applicant for water service to the entity-owned service line at a property where a customer or property owner, if the customer is not the property owner, previously refused or failed to accept an entity’s offer of a LSLR until the applicant verifies the replacement of the customer-owned LSL by providing a paid invoice from a licensed contractor where applicable or a verified statement from a licensed contractor attesting to completion of the LSLR.
(d) Reimbursements. An entity shall provide a reimbursement to an eligible customer or property owner, if the customer is not the property owner, who replaced their LSL within 1 year before or from LSLR project commencement.
(1) An entity’s pro forma tariff or tariff supplement must include language explaining its reimbursement terms and conditions which shall contain, at a minimum:
(i) An explanation of the entity’s method for determining the amount of reimbursement, including any restrictions on reimbursements.
(ii) An explanation of the entity’s reimbursement methods, including the forms of payment to be used by the entity to distribute reimbursements and the length of time by which the entity will issue a reimbursement for an eligible reimbursement request.
(iii) An explanation of the entity’s method for determining eligibility, providing that:
(A) A customer or property owner, if the customer is not the property owner, located within a LSLR project area is eligible for a reimbursement of LSLR expenses up to 125% of the average cost the entity would have incurred to perform the replacement of a similarly-sized service line, not to exceed the actual cost.
(B) A customer or property owner, if the customer is not the property owner, shall submit to the entity a detailed estimate and paid invoice from a licensed contractor where applicable, verifying the replacement of the customer-owned LSL. Instead of a detailed estimate, a verified statement from the contractor attesting to completion of a LSLR may be sufficient.
(2) Notwithstanding the LSLR program annual cap in subsection (a), an entity shall provide a reimbursement to an eligible customer or property owner, if the customer is not the property owner, within the length of established under subsection (d)(1)(ii). If the reimbursement would cause the entity to exceed its current annual cap subsection (a), the entity must increase its current annual cap by the amount of the reimbursement and decrease its next annual cap by this amount.
(3) An entity shall make reasonable best efforts to assist a customer or property owner, if the customer is not the property owner, through the reimbursement process and, to the extent possible, make determinations in favor of the customer or property owner where the customer or property owner has provided reasonable evidence of a LSLR to the entity.
(e) Warranty. An entity’s pro forma tariff or tariff supplement must provide a warranty on LSLR work performed by the entity or its contractor of a term of not less than 2 years. The entity’s warranty provisions must:
(1) Define the start date of the 2-year term.
(2) Ensure that the materials and workmanship of the replacement and restoration of surfaces are covered.
(3) Define the maximum coverage amounts under the warranty.
(4) Explain any liability an entity will have for damages not covered by the warranty.
(5) Ensure entity access to the property to correct any deficiencies.
Cross References This section cited in 52 Pa. Code § 65.55 (relating to LSLR program requirements).
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