§ 35-A §6112 — Contingency allowance

1.
Annual contingency allowance.
A consumer-owned water utility may provide for an annual contingency allowance by including in rates the amounts as follows:
2.
Contingency reserve fund maximum.
3.
Use of contingency reserve fund.
3-A.
Authorized uses; commission review.
This section does not:
4.
Transition.
5.
Commission review.
If the commission determines that the consumer-owned water utility has accumulated in its unappropriated retained earnings account an amount that is inconsistent with just and reasonable rates, the commission may, pursuant to chapter 13, order the utility to reduce its rates to the appropriate level either in the form of temporary rate adjustments, credits or reduction in rates.
6.
Public hearing on excesses.
If a consumer-owned water utility in each of 3 consecutive years collects through rates under subsection 1 an amount, in the case of a utility with up to $85,000 total annual revenues, greater than 10% of the utility's annual operating expenses or, in the case of a utility with greater than $85,000 total annual revenues, an amount equal to or greater than 7% of the utility's total annual operating expenses, the water utility shall:

Legislative History

RR 1991, c. 1, §49 (RNU). PL 1991, c. 221, §2 (NEW). PL 2003, c. 529, §2 (AMD).