§ 66.38. 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 DWSL program must address at a minimum:
(a) DWSL program annual cap. An entity’s pro forma tariff or tariff supplement must include a cap on the number of DWSL replacements that can be completed annually.
(b) Service line demarcation.
(1) An entity’s pro forma tariff or tariff supplement must include a definition for customer’s service lateral for purposes of the entity’s DWSL program that is consistent with § 66.32 (relating to definitions).
(2) An entity shall perfect its ownership of the portion of the service lateral located within the then-existing right-of-way in conformance with its Commission-approved tariff to ensure that the entity can obtain necessary permits to complete work within the public right-of-way in the future.
(c) Frequency of DWSL replacements. An entity’s pro forma tariff or tariff supplement must include a restriction where the entity may not complete more than one DWSL replacement for a customer at a property that previously received a DWSL replacement for a length of time equal to the lesser of the average service life for DWSL replacements established in the entity’s most recent base rate case or the average service life for Account No. 363—Services to Customers in the entity’s most recent Service Life Study filed with the Commission under § 73.5 (relating to service life study report).
(d) Reimbursements. An entity shall provide a reimbursement to an eligible customer or property owner, if the customer is not the property owner, who completed a DWSL replacement within 1 year before or from DWSL 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 utility 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 DWSL project area is eligible for a reimbursement of DWSL replacement expenses up to 125% of the average cost the entity would have incurred to perform a DWSL replacement of a similarly-sized customer service lateral, 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 completion of a DWSL replacement. Instead of a detailed estimate, a verified statement from a licensed contractor attesting to completion of a DWSL replacement may be sufficient.
(2) Notwithstanding the DWSL program annual cap in subsection (a), an entity must 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 annual cap under 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 DWSL replacement to the entity.
(e) Warranty. An entity’s pro forma tariff or tariff supplement must provide a warranty on DWSL replacement 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 DWSL 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 § 66.35 (relating to DWSL program requirements).
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