§ 46-15.6-6. Financing infrastructure replacement.
The cost of infrastructure replacement programs and indemnification as required by
this chapter shall be financed as follows:
(1) The cost of programs to implement infrastructure replacement shall be paid by the
water users. The charges shall be limited to those necessary and reasonable to undertake
the actions required by this chapter. These charges shall be based upon the annual
funding requirements of the facility improvements necessitated over each successive
twenty (20) year period. Interest earned on money in this infrastructure replacement
fund
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§ 46-15.6-6. Financing infrastructure replacement.
The cost of infrastructure replacement programs and indemnification as required by
this chapter shall be financed as follows:
(1) The cost of programs to implement infrastructure replacement shall be paid by the
water users. The charges shall be limited to those necessary and reasonable to undertake
the actions required by this chapter. These charges shall be based upon the annual
funding requirements of the facility improvements necessitated over each successive
twenty (20) year period. Interest earned on money in this infrastructure replacement
fund shall be credited to this infrastructure replacement fund.
(2) Each water supplier designated in § 46-15.6-3 shall establish a special account designated as the infrastructure replacement fund
to be held as a restricted receipt account and to be administered by the water supplier
solely to implement and carry out the replacement of infrastructure as required by
this chapter.
(3) Any money which may accumulate in the infrastructure replacement fund in excess of
that needed to implement the annual infrastructure replacement program or in excess
of that exclusively pledged to repayment of outstanding bonds or notes or loan repayments
to implement the infrastructure replacement program shall revert to the rate payers
of that particular system on a biannual basis.
(4) Each water supplier designated in § 46-15.6-3 may, as a complete or partial alternative to direct funding of its infrastructure
replacement program, finance its infrastructure replacement program through bonding.
The annual debt service of each bond or bonds shall be applied and credited towards
the annual requirement of the infrastructure replacement program's annual funding
requirements.
(5) The Rhode Island public utilities commission, as to water suppliers within its jurisdiction,
shall permit an increase for just and reasonable infrastructure replacement in the
portion of the water suppliers' rate structure to comply with this chapter and shall
allow the water supplier to add this required funding to its rate base in accordance
with this chapter.