# 4 CCR 723-5: RULES REGULATING WATER, AND COMBINED WATER AND SEWER UTILITIES

> Colorado · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_5

## Section

- **Citation:** 4 CCR 723-5
- **Heading:** RULES REGULATING WATER, AND COMBINED WATER AND SEWER UTILITIES
- **Jurisdiction:** Colorado
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Code of Colorado Regulations / 700 Department of Regulatory Agencies / 723 Public Utilities Commission / 4 CCR 723-5

## Text

1
DEPARTMENT OF REGULATORY AGENCIES
Public Utilities Commission
RULES REGULATING WATER, AND COMBINED WATER AND SEWER UTILITIES
4 CCR 723-5
[Editor’s Notes follow the text of the rules at the end of this CCR Document.]
_________________________________________________________________________
BASIS, PURPOSE, AND STATUTORY AUTHORITY.
The basis and purpose of these rules is to generally set forth rules describing the service to be provided
by jurisdictional water utilities and jurisdictional combined water and sewer utilities to their customers. The
rules address a wide variety of subject areas including, but not limited to application requirements,
operating authorities, facility requirements, cost allocation and assignment, simplified regulatory
treatment, service interruption, meter testing and accuracy, customer information, customer deposits, rate
schedules filings and tariffs, discontinuance of service, water quality, and water pressure.
The statutory authority for these rules can be found at §§ 40 2 108, 40 3 102, 40 3 103, 40 3 104.4, 40 4
101, 40 4 108, 40 4 109, 40-7-113.5, and 40-7-116.5, C.R.S.
GENERAL PROVISIONS
5000.
Scope and Applicability.
Absent a specific statute, rule or Commission order which provides otherwise, all rules in this Part 5, the
“5000” series, shall apply to all jurisdictional water utilities and combined water and sewer utilities and to
all Commission proceedings and operations concerning water service and combined water and sewer
service.
5001.
Definitions.
The following definitions apply throughout this Part 5, except where a specific rule or statute provides
otherwise:
provides otherwise, all rules in this Part 5, the
“5000” series, shall apply to all jurisdictional water utilities and combined water and sewer utilities and to
all Commission proceedings and operations concerning water service and combined water and sewer
service.
5001.
Definitions.
The following definitions apply throughout this Part 5, except where a specific rule or statute provides
otherwise:
(a)
“Affiliate” of a public utility means a subsidiary of a public utility, a parent corporation of a public
utility, a joint venture organized as a separate corporation or partnership to the extent of the
individual public utility’s involvement with the joint venture, a subsidiary of a parent corporation of
a public utility or where the public utility or the parent corporation has a controlling interest over
an entity.
(b)
“Basis point” means one-hundredth of a percentage point (100 basis points = 1 percent).
(c)
“Customer” means any person who is currently receiving utility service. Any person who moves
within a utility’s service territory and obtains utility service at a new location within 30 days shall
be considered a “customer.” Unless stated in a particular rule, “customer” applies to any class of
customer as defined by the Commission or by utility tariff.
(d)
“Distribution Line Extension” means any construction of distribution facilities (excluding meters
and meter installation facilities) necessary to supply service to one or more additional customers.
Code of Colorado Regulations
Secretary of State
State of Colorado

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(e)
“Local office” means any Colorado office operated by a utility at which persons may make
requests to establish or discontinue utility service. If the utility does not operate any office in
Colorado, “local office” means any office operated by a utility at which persons may make
requests to establish or discontinue utility service in Colorado.
ULATIONS
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(e)
“Local office” means any Colorado office operated by a utility at which persons may make
requests to establish or discontinue utility service. If the utility does not operate any office in
Colorado, “local office” means any office operated by a utility at which persons may make
requests to establish or discontinue utility service in Colorado.
(f)
“Master water meter operator” means a person who:
(I)
purchases utility service from a utility for the purpose of delivering that service to end
users whose aggregate usage is to be measured by a composite measurement device;
(II)
does not charge end users for any costs in addition to the actual cost billed to such
person for utility service, including without limitation, costs of construction, maintenance,
financing, administration, metering, or billing for the distribution system owned or leased
by such person;
(III)
if billing end users separately, does not bill the end users, in the aggregate, more than
the amount billed to such person for utility service; and
(IV)
if billing end users separately, passes on to the end users any refunds, rebates, rate
reductions, or similar adjustments such person receives for utility service.
(V)
In addition, a person who manages or acts as a landlord of mobile home parks under the
jurisdiction of the Department of Local Affairs and the Mobile Home Park Act Dispute
Resolution and Enforcement Program may be a master water meter operator.
(g)
“Past due” means the point at which a utility can affect a customer’s account for regulated service
due to non-payment of charges for regulated service.
(h)
“Principal place of business” means the place, in or out of the state of Colorado, where the
executive or managing principals that directly oversee the utility's operations in Colorado are
located.
ram may be a master water meter operator.
(g)
“Past due” means the point at which a utility can affect a customer’s account for regulated service
due to non-payment of charges for regulated service.
(h)
“Principal place of business” means the place, in or out of the state of Colorado, where the
executive or managing principals that directly oversee the utility's operations in Colorado are
located.
(i)
“Service Line Extension” means any construction of distribution facilities (including meters and
meter installation facilities) necessary to supply service to a single customer household or a
single multi-unit dwelling.
(j)
“Utility” means any public utility as defined in § 40-1-103(1)(a), C.R.S., providing water or
combined water and sewer to customers in the state of Colorado.
(k)
“Utility service” or “service” means a service offering of a public utility, which service offering is
regulated by the Commission.
5002.
Applications.
(a)
Any person may seek Commission action regarding any of the following matters through the filing
of an appropriate application:
(I)
for the issuance or extension of a certificate of public convenience and necessity for a
franchise, as provided in rule 5100;
(II)
for the issuance or extension of a certificate of public convenience and necessity for
service territory, as provided in rule 5101;
(III)
for the issuance of a certificate of public convenience and necessity for construction of
facilities, as provided in rule 5102;

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ce and necessity for a
franchise, as provided in rule 5100;
(II)
for the issuance or extension of a certificate of public convenience and necessity for
service territory, as provided in rule 5101;
(III)
for the issuance of a certificate of public convenience and necessity for construction of
facilities, as provided in rule 5102;

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(IV)
for the amendment of a certificate of public convenience and necessity to change,
extend, curtail, abandon, or discontinue any service or facility, as provided in rule 5103;
(V)
to transfer a certificate of public convenience and necessity, to obtain a controlling
interest in any utility, to transfer assets within the jurisdiction of the Commission, or stock,
or to merge a utility with another entity, as provided in rule 5104;
(VI)
to amend a tariff on less than statutory notice, as provided in rule 5109;
(VII)
for simplified regulatory treatment, for modification of simplified regulatory treatment, for
continuation of simplified regulatory treatment, or for termination of simplified regulatory
treatment, as provided in rule 5112;
(VIII)
for approval of meter and equipment testing practices, as provided in rule 5303;
(IX)
for approval of meter sampling program, as provided in rule 5304;
(X)
for approval of refund plan, as provided in rule 5410;
(XI)
for approval of an emergency notification plan, as provided in rule 5411; and
(XII)
for any other matter not specifically described in this rule unless such matter is required
to be submitted as a petition under rule 1304, as a motion, or as some other specific type
of submittal.
al of meter sampling program, as provided in rule 5304;
(X)
for approval of refund plan, as provided in rule 5410;
(XI)
for approval of an emergency notification plan, as provided in rule 5411; and
(XII)
for any other matter not specifically described in this rule unless such matter is required
to be submitted as a petition under rule 1304, as a motion, or as some other specific type
of submittal.
(b)
In addition to the requirements of specific rules, all applications shall include, in the following
order and specifically identified, the following information, either in the application or in
appropriately identified attached exhibits:
(I)
the name and address of the applying utility;
(II)
the name(s) under which the applying utility is, or will be, providing service in Colorado;
(III)
the name, address, telephone number, and e-mail address of the applying utility's
representative to whom all inquiries concerning the application should be made;
(IV)
a statement that the applying utility agrees to answer all questions propounded by the
Commission or its Staff concerning the application;
(V)
a statement that the applying utility shall permit the Commission or any member of its
Staff to inspect the applying utility's books and records as part of the investigation into the
application;
(VI)
a statement that the applying utility understands that, if any portion of the application is
found to be false or to contain material misrepresentations, any authorities granted
pursuant to the application may be revoked upon Commission order;
(VII)
in lieu of the separate statements required by subparagraphs (b)(IV) through (VI) of this
rule, a utility may include a statement that it has read, and agrees to abide by, the
provisions of subparagraphs (b)(IV) through (VI) of this rule;
(VIII)
a statement describing the applying utility’s existing operations and general service area
in Colorado;

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rate statements required by subparagraphs (b)(IV) through (VI) of this
rule, a utility may include a statement that it has read, and agrees to abide by, the
provisions of subparagraphs (b)(IV) through (VI) of this rule;
(VIII)
a statement describing the applying utility’s existing operations and general service area
in Colorado;

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(IX)
for applications listed in subparagraphs (a)(I), (II), (III), (V), and (VI) of this rule, a copy of
the applying utility's or parent company’s and consolidated subsidiaries’ most recent
audited balance sheet, income statement, statement of retained earnings, and statement
of cash flows that provide Colorado specific financial information;
(X)
a statement indicating the town or city, and any alternative town or city, in which the
applying utility prefers any hearing be held;
(XI)
acknowledgment that, by signing the application, the applying utility understands that:
(A)
the filing of the application does not by itself constitute approval of the
application;
(B)
if the application is granted, the applying utility shall not commence the requested
action until the applying utility complies with applicable Commission rules and
any conditions established by Commission order granting the application;
(C)
if a hearing is held, the applying utility must present evidence at the hearing to
establish its qualifications to undertake, and its right to undertake, the requested
action; and
(D)
in lieu of the statements contained in subparagraphs (b)(XI)(A) through (C) of this
rule, an applying utility may include a statement that it has read, and agrees to
abide by, the provisions of subparagraphs (b)(XI)(A) through (C) of this rule
pplying utility must present evidence at the hearing to
establish its qualifications to undertake, and its right to undertake, the requested
action; and
(D)
in lieu of the statements contained in subparagraphs (b)(XI)(A) through (C) of this
rule, an applying utility may include a statement that it has read, and agrees to
abide by, the provisions of subparagraphs (b)(XI)(A) through (C) of this rule.
(XII)
An attestation which is made under penalty of perjury; which is signed by an officer, a
partner, an owner, an employee of, an agent for, or an attorney for the applying utility, as
appropriate, who is authorized to act on behalf of the applying utility; and which states
that the contents of the application are true, accurate, and correct. The application shall
contain the title and the complete address of the affiant.
(c)
In addition to the requirements of specific rules, all applications shall include the information listed
in subparagraphs (a)(I) through (V) of rule 1310. Applying utilities may either include the
information in the application itself or incorporate the information by reference to the
miscellaneous proceeding created under rule 1310.
(d)
Customer notice. Except as required or permitted by § 40-3-104, C.R.S., if the applicant is
required by statute, Commission rule, or order to provide notice to its customers of the
application, the applicant shall, after filing an application with the Commission, cause to have
published notice using the following methods:
(I)
if the applicant has a public website, the applicant shall immediately post notice of the
filing on its public website, which posting must be conspicuously displayed on the website
for at least 30 days;
(II)
within seven days after filing an application with the Commission, cause to have
published notice of the filing of the application in each newspaper of general circulation in
the service area impacted by the application
ic website, the applicant shall immediately post notice of the
filing on its public website, which posting must be conspicuously displayed on the website
for at least 30 days;
(II)
within seven days after filing an application with the Commission, cause to have
published notice of the filing of the application in each newspaper of general circulation in
the service area impacted by the application. The applicant shall file proof of such
customer notice in the proceeding noticed within 14 days of the publication in the
newspaper. Failure to provide such notice or failure to provide the Commission with proof
of notice may cause the Commission to not deem the application complete; and
(III)
such other notice method as deemed appropriate by the Commission.
(e)
All forms of customer notice pursuant to paragraph (d) shall include the following:

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(I)
the title “Notice of Application by [Name of the Utility] for [Purpose of Application]”;
(II)
state that [Name of Utility] has applied to the Colorado Public Utilities Commission for
approval to [Purpose of Application]. If the utility commonly uses another name when
conducting business with its customers, the “also known as” name should also be
identified in the notice to customers;
(III)
provide a brief description of the proposal and the scope of the proposal, including an
explanation of the possible impact upon persons receiving the notice;
(IV)
identify which customer class(es) will be affected and the monthly customer rate impact
by customer class, if customer rates are affected by the application;
(V)
identify the application's proposed effective date;
(VI)
identify that the application was filed on less than statutory notice or if the applicant
requests an expedited Commission decision, as applicable;
(VII)
state that the filing is available for inspection in each local office of the applicant and at
the Colorado Public Utilities Commission;
(VIII)
identify the proceeding number, if known at the
entify the application's proposed effective date;
(VI)
identify that the application was filed on less than statutory notice or if the applicant
requests an expedited Commission decision, as applicable;
(VII)
state that the filing is available for inspection in each local office of the applicant and at
the Colorado Public Utilities Commission;
(VIII)
identify the proceeding number, if known at the time the customer notice is provided;
(IX)
state that any person may file written comment(s) or objection(s) concerning the
application with the Commission. As part of this statement, the notice shall identify both
the address and e-mail address of the Commission and shall state that the Commission
will consider all written comments and objections submitted prior to the evidentiary
hearing on the application;
(X)
state that if a person desires to participate as a party in any proceeding before the
Commission regarding the filing, such person shall file an intervention in accordance with
the rule 1401 of the Commission’s Rules of Practice and Procedure or any applicable
Commission order;
(XI)
state that the Commission may hold a public hearing in addition to an evidentiary hearing
on the application and that if such a hearing is held members of the public may attend
and make statements even if they did not file comments, objections or an intervention.
Identify that if the application is uncontested or unopposed, the Commission may
determine the matter without a hearing and without further notice; and
(XII)
state that any person desiring information regarding if and when hearings may be held
shall submit a written request to the Commission or, alternatively, shall contact the
External Affairs section of the Commission at its local or toll-free phone number. Such
statement shall also identify both the local and toll-free phone numbers of the
Commission’s External Affairs section.
5003.
[Reserved].
5004.
Disputes and Informal Complaints.
mation regarding if and when hearings may be held
shall submit a written request to the Commission or, alternatively, shall contact the
External Affairs section of the Commission at its local or toll-free phone number. Such
statement shall also identify both the local and toll-free phone numbers of the
Commission’s External Affairs section.
5003.
[Reserved].
5004.
Disputes and Informal Complaints.
(a)
For purposes of this rule, “dispute” means a concern, difficulty, or problem which needs resolution
and which a customer or a person applying for service brings directly to the attention of the utility
without the involvement of Staff or the Commission.

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(b)
A dispute may be initiated orally or in writing. Using the procedures found in rule 1301, a utility
shall conduct a full and prompt investigation of all disputes concerning utility service.
(c)
In accordance with the procedures in rule 1301, each utility shall conduct a full and prompt
investigation of all informal complaints concerning utility service.
(d)
A utility shall comply with all rules regarding the timelines for responding to informal complaints.
(e)
If a current customer, or an applicant for service that is not a current customer, is dissatisfied with
the utility's proposed adjustment or disposition of a dispute, the utility shall inform the person,
customer, or applicant for service of the right to make an informal complaint to the External Affairs
section of the Commission and shall provide to the person, customer or applicant for service the
address and toll free number of the Commission’s External Affairs section.
omer, is dissatisfied with
the utility's proposed adjustment or disposition of a dispute, the utility shall inform the person,
customer, or applicant for service of the right to make an informal complaint to the External Affairs
section of the Commission and shall provide to the person, customer or applicant for service the
address and toll free number of the Commission’s External Affairs section.
(f)
Each utility shall keep a record of each informal complaint and of each dispute. The record shall
show the name and address of the initiating customer or person applying for service, the date and
character of the issue, and the adjustment or disposition made. This record shall be open at all
times to inspection by the person who initiated the informal complaint or dispute, by the
Commission, and by Commission staff.
5005.
Records.
(a)
Except as a specific rule may require, every utility shall maintain for a period of not less than
three years and shall make available for public inspection at its principal place of business during
regular business hours, the following:
(I)
records concerning disputes and informal complaints, which records are created pursuant
to rule 5004;
(II)
instrumentation records, which records are created pursuant to rule 5201;
(III)
purity and pressure records required under rule 5202, for at least two years, except as
may be required for longer periods by applicable federal, state, county, or municipal
statutes, codes, regulations, or rules;
(IV)
the results of all tests made by the Water Quality Control Division of the Colorado
Department of Public Health and Environment (CDPHE), indicating when, where, and by
whom each test was conducted;
(V)
the results of all tests required by the Water Quality Control Division of CDPHE,
indicating when, where, and by whom each test was conducted;
(VI)
all records made with respect to meter testing equipment and facilities, meter testing
upon request, and records of meter tests under rules 5303, 5305, and 5306;
(VII)
all customer billing records, which re
ere, and by
whom each test was conducted;
(V)
the results of all tests required by the Water Quality Control Division of CDPHE,
indicating when, where, and by whom each test was conducted;
(VI)
all records made with respect to meter testing equipment and facilities, meter testing
upon request, and records of meter tests under rules 5303, 5305, and 5306;
(VII)
all customer billing records, which records are created pursuant to paragraph 5401(a);
(VIII)
all customer deposits, which records are created pursuant to rule 5403; and
(IX)
records concerning compliance or non-compliance with applicable standards and
requirements, which records are required to be maintained pursuant to paragraph
5005(e).

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(b)
A utility shall maintain at each of its local offices and at its principal place of business all tariffs
filed with the Commission and applying to Colorado rate areas. If the utility maintains a website, it
shall also maintain its current and complete tariffs on its website.
(c)
Each utility shall maintain its books of account and records in accordance with Generally
Accepted Accounting Principles (GAAP). A utility must maintain its books of account and records
separately from those of its affiliates.
(d)
Each utility shall preserve its records as follows:
(I)
all General and Subsidiary Ledgers shall be retained for ten years; and
(II)
all Continuing Property Records shall be retained for the longer of 25 years or the life of
the plant.
cordance with Generally
Accepted Accounting Principles (GAAP). A utility must maintain its books of account and records
separately from those of its affiliates.
(d)
Each utility shall preserve its records as follows:
(I)
all General and Subsidiary Ledgers shall be retained for ten years; and
(II)
all Continuing Property Records shall be retained for the longer of 25 years or the life of
the plant.
(e)
Each utility shall maintain records demonstrating its compliance or non-compliance with all
applicable quality, purity, monitoring, testing, and record-keeping standards and requirements of:
(I)
the federal Clean Water Act and the rules and regulations promulgated thereunder;
(II)
the federal Safe Drinking Water Act, and the rules and regulations promulgated
thereunder;
(III)
the drinking water regulations promulgated by the Water Quality Control Division of
CDPHE; and
(IV)
the effluent limits established in the utility’s Colorado Discharge Permit System permit
issued by Water Quality Control Division of CDPHE.
5006.
Reports.
Each utility shall provide the following reports to the Commission.
(a)
On or before April 30 of each year, an annual report for the preceding calendar year. The utility
shall submit the annual report on forms prescribed and supplied by the Commission; shall
properly complete the forms; shall ensure the forms are verified and signed by a person
authorized to act on behalf of the utility; and shall file the required number of copies pursuant to
subparagraph 1204(a)(IV) of the Commission’s Rules of Practice and Procedure. If the
Commission grants the utility an extension of time to file the annual report, the utility nevertheless
shall file with the Commission, on or before April 30, the utility's total gross operating revenue
from intrastate utility business transacted in Colorado for the preceding calendar year.
(b)
If a certified public accountant prepares an annual report for a utility, the utility shall file a copy of
the report with the Commission within 30 days after publication.
ual report, the utility nevertheless
shall file with the Commission, on or before April 30, the utility's total gross operating revenue
from intrastate utility business transacted in Colorado for the preceding calendar year.
(b)
If a certified public accountant prepares an annual report for a utility, the utility shall file a copy of
the report with the Commission within 30 days after publication.
(c)
On or before April 30 of each year, and as part of the report required by paragraph (a) of this rule,
a small, privately owned company that has been granted simplified regulatory treatment shall file
a report with the Commission detailing the information required by paragraph 5112(d).
(d)
All reports and supporting documentation concerning simplified regulatory treatment, as required
by rule 5112.
(e)
All reports and substantiating documentation concerning incidents resulting in death, serious
injury, or serious property damage, as required by rule 5204.

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(f)
Such special reports as the Commission may require.
5007 - 5008.
[Reserved].
CIVIL PENALTIES
5009.
Definitions.
The following definitions apply to rules 5009, 5010, and 5420 unless a specific statute or rule provides
otherwise. In the event of a conflict between these definitions and a statutory definition, the statutory
definition shall apply.
(a)
“Civil penalty” means any monetary penalty levied against a public utility because of intentional
violations of statutes in Articles 1 to 7 and 15 of Title 40, C.R.S., Commission rules, or
Commission orders.
(b)
“Civil penalty assessment” means the act by the Commission of imposing a civil penalty against a
public utility after the public utility has admitted liability or has been adjudicated by the
Commission to be liable for intentional violations of statutes in Articles 1 to 7 and 15 of Title 40,
C.R.S., Commission rules, or Commission orders.
tle 40, C.R.S., Commission rules, or
Commission orders.
(b)
“Civil penalty assessment” means the act by the Commission of imposing a civil penalty against a
public utility after the public utility has admitted liability or has been adjudicated by the
Commission to be liable for intentional violations of statutes in Articles 1 to 7 and 15 of Title 40,
C.R.S., Commission rules, or Commission orders.
(c)
“Civil penalty assessment notice” means the written document by which a public utility is given
notice of an alleged intentional violation of statutes in Articles 1 to 7 and 15 of Title 40, C.R.S.,
Commission rules, or Commission orders and of a proposed civil penalty.
(d)
“Intentional violation.” A person acts ‘intentionally’ or ‘with intent’ when his conscious objective is
to cause the specific result proscribed by the statute, rule, or order defining the violation.
5010.
Regulated Water and Water and Sewer Utility Violations, Civil Enforcement, and
Enhancement of Civil Penalties.
(a)
The Commission may impose a civil penalty in accordance with the requirements and procedures
contained in § 40-7-113.5, C.R.S., § 40-7-116.5, C.R.S., and paragraph 1302(b), 4 Code of
Colorado Regulations 723-1, for intentional violations of statutes in Articles 1 to 7 and 15 of Title
40, C.R.S., Commission rules, or Commission orders as specified in §§ 40-7-113.5 and 40-7-
116.5, C.R.S., and in these rules.
(b)
The director of the commission or his or her designee shall have the authority to issue civil
penalty assessments for the violations enumerated in § 40-7-113.5, C.R.S., subject to hearing
before the Commission. When a public utility is cited for an alleged intentional violation, the public
utility shall be given notice of the alleged violation in the form of a civil penalty assessment notice.
(b)
The director of the commission or his or her designee shall have the authority to issue civil
penalty assessments for the violations enumerated in § 40-7-113.5, C.R.S., subject to hearing
before the Commission. When a public utility is cited for an alleged intentional violation, the public
utility shall be given notice of the alleged violation in the form of a civil penalty assessment notice.
(c)
The public utility cited for an alleged intentional violation may either admit liability for the violation
pursuant to § 40-7-116.5(1)(c) or the public utility may contest the alleged violation pursuant to §
40-7-116.5(1)(d), C.R.S. At any hearing contesting an alleged violation, trial staff shall have the
burden of demonstrating a violation by a preponderance of the evidence.
(d)
In any written decision entered by the Commission pursuant to § 40-6-109, C.R.S., adjudicating a
public utility liable for an intentional violation of a statute in Articles 1 to 7 and 15 of Title 40,
C.R.S., a Commission rule, or a Commission order, the Commission may impose a civil penalty
of not more than two thousand dollars, pursuant to § 40-7-113.5(1), C.R.S. In imposing any civil
penalty pursuant to § 40-7-113.5(1), C.R.S., the Commission shall consider the factors set forth in
Rule 1302(b).

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(e)
The Commission may assess doubled or tripled civil penalties against any public utility, as
provided by § 40-7-113.5(3), C.R.S., § 40-7-113.5(4), C.R.S., and this rule.
7-113.5(1), C.R.S. In imposing any civil
penalty pursuant to § 40-7-113.5(1), C.R.S., the Commission shall consider the factors set forth in
Rule 1302(b).

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(e)
The Commission may assess doubled or tripled civil penalties against any public utility, as
provided by § 40-7-113.5(3), C.R.S., § 40-7-113.5(4), C.R.S., and this rule.
(f)
The Commission may assess any public utility a civil penalty containing doubled penalties only if:
(I)
the public utility has admitted liability by paying the civil penalty assessment for, or has
been adjudicated by the Commission in an administratively final written decision to be
liable for, engaging in prior conduct that constituted an intentional violation of a statute in
Articles 1 to 7 and 15 of Title 40, C.R.S., a Commission rule, or a Commission order;
(II)
the conduct for which doubled civil penalties are sought violates the same statute, rule, or
order as conduct for which the public utility has admitted liability by paying the civil
penalty assessment, or conduct for which the public utility has been adjudicated by the
Commission in an administratively final written decision to be liable; and
(III)
the conduct for which doubled civil penalties are sought occurred within one year after
conduct for which the public utility has admitted liability by paying the civil penalty
assessment or conduct for which the public utility has been adjudicated by the
Commission in an administratively final written decision to be liable.
sion in an administratively final written decision to be liable; and
(III)
the conduct for which doubled civil penalties are sought occurred within one year after
conduct for which the public utility has admitted liability by paying the civil penalty
assessment or conduct for which the public utility has been adjudicated by the
Commission in an administratively final written decision to be liable.
(g)
The Commission may assess any public utility a civil penalty containing tripled penalties only if:
(I)
the public utility has admitted liability by paying the civil penalty assessment for, or has
been adjudicated by the Commission in an administratively final written decision to be
liable for, engaging in prior conduct that constituted two or more prior intentional
violations of a statute in Articles 1 to 7 and 15 of Title 40, C.R.S., a Commission rule, or a
Commission order;
(II)
the conduct for which tripled civil penalties are sought violates the same statute, rule, or
order as conduct for which the public utility has either admitted liability by paying the civil
penalty assessment or been adjudicated by the Commission in an administratively final
written decision to be liable, in at least two prior instances; and
(III)
the conduct for which tripled civil penalties are sought occurred within one year after the
two most recent prior instances of conduct for which the public utility has either admitted
liability by paying the civil penalty assessment or been adjudicated by the Commission in
an administratively final written decision to be liable.
(h)
When more than two instances of prior conduct exist, the Commission shall only consider those
instances occurring within one year prior to the date of such alleged conduct for which tripled civil
penalties are sought.
(i)
Nothing in this rule shall preclude the assessment of tripled penalties when doubled and tripled
penalties are sought in the same civil penalty assessment notice.
be liable.
(h)
When more than two instances of prior conduct exist, the Commission shall only consider those
instances occurring within one year prior to the date of such alleged conduct for which tripled civil
penalties are sought.
(i)
Nothing in this rule shall preclude the assessment of tripled penalties when doubled and tripled
penalties are sought in the same civil penalty assessment notice.
(j)
The Commission shall not issue a decision on doubled or tripled penalties until after the effective
date of the administratively final Commission decision upon which the single civil penalty was
based.
(k)
The civil penalty assessment notice shall contain the maximum penalty amount provided by rule
for each individual violation noted, with a separate provision for a reduced penalty of 50 percent
of the penalty amount sought if paid within ten days of the public utility’s receipt of the civil penalty
assessment notice.

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(l)
The civil penalty assessment notice shall contain the maximum amount of the penalty surcharge
pursuant to § 24-34-108(2), C.R.S., if any.
(m)
A penalty surcharge referred to in paragraph (l) of this rule shall be equal to the percentage set by
the Department of Regulatory Agencies on an annual basis. The surcharge shall not be included
in the calculation of the statutory limits set in § 40-7-113.5(5), C.R.S.
(n)
Nothing in these rules shall affect the Commission’s ability to pursue other remedies in lieu of
issuing civil penalties.
5011. – 5099.
[Reserved].
OPERATING AUTHORITY
5100.
Certificate of Public Convenience and Necessity for a Franchise.
ment of Regulatory Agencies on an annual basis. The surcharge shall not be included
in the calculation of the statutory limits set in § 40-7-113.5(5), C.R.S.
(n)
Nothing in these rules shall affect the Commission’s ability to pursue other remedies in lieu of
issuing civil penalties.
5011. – 5099.
[Reserved].
OPERATING AUTHORITY
5100.
Certificate of Public Convenience and Necessity for a Franchise.
(a)
A utility seeking authority to provide service pursuant to a franchise shall file an application
pursuant to this rule. When a utility enters into a franchise agreement with a municipality for the
first time, it shall obtain authority from the Commission pursuant to § 40-5-102, C.R.S. prior to
providing service under that initial franchise agreement. A utility maintains the right and obligation
to serve a municipality within its service territory after the expiration of any franchise agreement.
(b)
An application for certificate of public convenience and necessity to exercise franchise rights shall
include, in the following order and specifically identified, the following information, either in the
application or in appropriately identified attached exhibits:
(I)
the information required in paragraphs 5002(b) and (c);
(II)
a statement of the facts (not conclusory statements) relied upon by the applicant to show
that the public convenience and necessity require the granting of the application;
(III)
a statement describing the franchise rights proposed to be exercised
nformation, either in the
application or in appropriately identified attached exhibits:
(I)
the information required in paragraphs 5002(b) and (c);
(II)
a statement of the facts (not conclusory statements) relied upon by the applicant to show
that the public convenience and necessity require the granting of the application;
(III)
a statement describing the franchise rights proposed to be exercised. The statement shall
include a description of the type of utility service to be rendered and a description of the
area sought to be served, together with a map of the area;
(IV)
a certified copy of the franchise ordinance; proof of publication, adoption, and acceptance
by the applicant; a statement as to the number of customers served or to be served and
the population of the city or town; and any other pertinent information;
(V)
a statement describing in detail the extent to which the applicant is affiliated with any
other company which holds authority duplicating in any respect the authority sought;
(VI)
a feasibility study for areas previously not served by the applicant, which study shall at
least include estimated investment, income, and expense. The applicant may request
that the most recent audited balance sheet, income statement, statement of retained
earnings, and statement of cash flows be submitted in lieu of a feasibility study; and
(VII)
a statement of the names of public utilities and other entities of like character providing
similar service in or near the area involved in the application.
5101.
Certificate of Public Convenience and Necessity for Service Territory.
ost recent audited balance sheet, income statement, statement of retained
earnings, and statement of cash flows be submitted in lieu of a feasibility study; and
(VII)
a statement of the names of public utilities and other entities of like character providing
similar service in or near the area involved in the application.
5101.
Certificate of Public Convenience and Necessity for Service Territory.
(a)
A utility seeking authority to provide service in a new service territory shall file an application
pursuant to this rule. A utility cannot provide service to a new geographic area without authority
from the Commission, unless the utility extends its facilities and service:

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(I)
within a city and county or city or town with which the utility has lawfully commenced
operations;
(II)
into territory contiguous to the utility’s facility, line, plant, or system that is not served by a
public utility providing the same commodity or service; or
(III)
within or to territory already served by the utility and the extension is necessary in the
ordinary course of business.
(b)
An application for certificate of public convenience and necessity to provide service in a new
territory shall include, in the following order and specifically identified, the following information,
either in the application or in appropriately identified attached exhibits:
(I)
the information required in paragraphs 5002(b) and (c);
(II)
a statement of the facts (not conclusory statements) relied upon by the applicant to show
that the public convenience and necessity require the granting of the application;
(III)
a description of the type of utility service to be rendered and a description of the area
sought to be served;
(IV)
a map showing the specific geographic area that the applicant proposes to serve. If the
applicant intends to phase in service in the territory over time, specific areas and
proposed in-service dates shall be included
nience and necessity require the granting of the application;
(III)
a description of the type of utility service to be rendered and a description of the area
sought to be served;
(IV)
a map showing the specific geographic area that the applicant proposes to serve. If the
applicant intends to phase in service in the territory over time, specific areas and
proposed in-service dates shall be included. The map shall describe the geographic
areas in section, township, and range convention;
(V)
a statement describing in detail the extent to which the applicant is affiliated with any
other company which holds authority duplicating in any respect the territory sought;
(VI)
a statement of the names of public utilities and other entities of like character providing
similar service in or near the area involved in the application; and
(VII)
a feasibility study for the proposed area to be served, which shall at least include
estimated investment, income, and expense. An applicant may request that the most
recent audited balance sheet, income statement, statement of retained earnings, and
statement of cash flows be submitted in lieu of a feasibility study.
5102.
Certificate of Public Convenience and Necessity for Facilities.
(a)
A utility seeking authority to construct and to operate a facility or an extension of a facility
pursuant to § 40-5-101, C.R.S., shall file an application pursuant to this rule. The utility need not
apply to the Commission for approval of construction and operation of a facility or an extension of
a facility which is in the ordinary course of business. The utility shall apply to the Commission for
approval of construction and operation of a facility or an extension of a facility which is not in the
ordinary course of business.
ll file an application pursuant to this rule. The utility need not
apply to the Commission for approval of construction and operation of a facility or an extension of
a facility which is in the ordinary course of business. The utility shall apply to the Commission for
approval of construction and operation of a facility or an extension of a facility which is not in the
ordinary course of business.
(b)
An application for certificate of public convenience and necessity to construct and to operate
facilities or an extension of a facility pursuant to § 40-5-101, C.R.S., shall include, in the following
order and specifically identified, the following information, either in the application or in
appropriately identified attached exhibits:
(I)
the information required in paragraphs 5002(b) and (c);
(II)
a statement of the facts (not conclusory statements) relied upon by the applicant to show
that the public convenience and necessity require the granting of the application;

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(III)
a description of the proposed facilities to be constructed;
(IV)
estimated cost of the proposed facilities to be constructed;
(V)
anticipated construction start date, construction period, and in-service date;
(VI)
a map showing the general area or actual locations where facilities will be constructed,
population centers, major highways, county and state and boundaries; and
(VII)
a statement that the applicant understands it must present evidence at the hearing to
show its qualifications to conduct the utility operations proposed in the application.
5103.
Certificate Amendments for Changes in Service, Changes in Service Territory, or Changes
in Facilities.
s where facilities will be constructed,
population centers, major highways, county and state and boundaries; and
(VII)
a statement that the applicant understands it must present evidence at the hearing to
show its qualifications to conduct the utility operations proposed in the application.
5103.
Certificate Amendments for Changes in Service, Changes in Service Territory, or Changes
in Facilities.
(a)
A utility seeking authority to do the following shall file an application pursuant to this rule: amend
a certificate of public convenience and necessity to extend, to restrict, to curtail, or to abandon or
to discontinue without equivalent replacement, any service, service area, or facility. A utility shall
not extend, restrict, curtail, or abandon or discontinue without equivalent replacement, any
service, service area, or facility not in the ordinary course of business without authority from the
Commission.
(b)
An application to amend a certificate of public convenience and necessity to extend, to restrict, to
curtail, or to abandon or to discontinue without equivalent replacement, any service, service area,
or facility shall include, in the following order and specifically identified, the following information,
either in the application or in appropriately identified attached exhibits:
(I)
all information required in paragraphs 5002(b) and 5002(c);
(II)
if the application for amendment pertains to a certificate of public convenience and
necessity for facilities, all of the information required in rule 5102;
(III)
if the application for amendment pertains to a certificate of public convenience and
necessity for franchise rights, all of the information required in rule 5100;
(IV)
if the application for amendment pertains to a certificate of public convenience and
necessity for service territory, all of the information required in rule 5101; and
(V)
if the application for amendment pertains to a service, the application shall include:
(A)
the requested effective date for the extension, restriction, curtailment, or
a
rights, all of the information required in rule 5100;
(IV)
if the application for amendment pertains to a certificate of public convenience and
necessity for service territory, all of the information required in rule 5101; and
(V)
if the application for amendment pertains to a service, the application shall include:
(A)
the requested effective date for the extension, restriction, curtailment, or
abandonment or discontinuance without equivalent replacement, of the service;
and
(B)
a description of the extension, restriction, curtailment, or abandonment or
discontinuance without equivalent replacement, sought. This shall include maps,
as applicable. This shall also include a description of the applying utility's existing
operations and general service area.

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(c)
Customer notice of application. In addition to complying with the notice requirements of
paragraph 5002(d), a utility applying to curtail, to restrict, or to abandon or to discontinue without
equivalent replacement, a service shall prepare a written additional customer notice that complies
with subparagraphs 5002(d)(I) - (XII). Within ten days after the date of filing the application, the
utility shall mail or deliver the additional written customer notice to each of the applying utility's
affected customers. The additional written customer notice shall include a statement that details,
and explains the impact on customers of, the requested curtailment, restriction, or abandonment
or discontinuance without equivalent replacement.
(d)
If no customers will be affected by the grant of the application, the notice shall meet the
requirements of subparagraphs 5002(d)(I) - (XII) and shall be mailed to the Board of County
Commissioners of each affected county and to the mayor of each affected city, town, or
municipality.
5104.
Transfers, Controlling Interest, and Mergers.
andonment
or discontinuance without equivalent replacement.
(d)
If no customers will be affected by the grant of the application, the notice shall meet the
requirements of subparagraphs 5002(d)(I) - (XII) and shall be mailed to the Board of County
Commissioners of each affected county and to the mayor of each affected city, town, or
municipality.
5104.
Transfers, Controlling Interest, and Mergers.
(a)
A utility seeking authority to do any of the following shall file an application pursuant to this rule:
transfer a certificate of public convenience and necessity, transfer or obtain a controlling interest
in a utility, whether the transfer of control is affected by the transfer of assets, by the transfer of
stock by a merger or by other form of business combination, or transfer assets subject to the
jurisdiction of the Commission outside the normal course of business. A utility cannot transfer a
certificate of public convenience and necessity, transfer or obtain a controlling interest in any
utility, transfer assets outside the normal course of business or transfer stock, or merge with
another entity without authority from the Commission.
(b)
An application to transfer a certificate of public convenience and necessity, to transfer or obtain a
controlling interest in a utility, or to transfer assets subject to the jurisdiction of the Commission
shall include, in the following order and specifically identified, the following information, either in
the application or in appropriately identified attached exhibits:
(I)
the information required in paragraphs 5002(b) and 5002(c), as pertinent to each party to
the transaction;
(II)
a statement showing accounting entries, under GAAP, any plant acquisition adjustment,
gain, or loss proposed on the books by each party before and after the transaction which
is the subject of the application;
(III)
copies of any agreement for merger, sales agreement, or contract of sale pertinent to the
transaction which is the subject of the application;
(IV)
facts showing that the transaction
)
a statement showing accounting entries, under GAAP, any plant acquisition adjustment,
gain, or loss proposed on the books by each party before and after the transaction which
is the subject of the application;
(III)
copies of any agreement for merger, sales agreement, or contract of sale pertinent to the
transaction which is the subject of the application;
(IV)
facts showing that the transaction which is the subject of the application is not contrary to
the public interest;
(V)
an evaluation of the benefits and detriments to the customers of each party and to all
other persons who will be affected by the transaction which is the subject of the
application; and
(VI)
a comparison of the kinds and costs of service rendered before and after the transaction
which is the subject of the application.
(c)
An application to transfer a certificate of public convenience and necessity, an application to
transfer assets subject to the jurisdiction of the Commission, or an application to transfer or obtain
control of the utility may be made by joint or separate application of the transferor and the
transferee.

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(d)
When control of a utility is transferred to another entity, or the utility’s name is changed, the utility
which will afterwards operate under the certificate of public convenience and necessity shall file
with the Commission a tariff adoption notice, shall post the tariff adoption notice in a prominent
public place in each local office and principal place of business of the utility, and shall have the
tariff adoption notice available for public inspection at each local office and principal place of
business. Adoption notice forms are available from the Commission
onvenience and necessity shall file
with the Commission a tariff adoption notice, shall post the tariff adoption notice in a prominent
public place in each local office and principal place of business of the utility, and shall have the
tariff adoption notice available for public inspection at each local office and principal place of
business. Adoption notice forms are available from the Commission. The tariff adoption notice
shall contain all of the following information:
(I)
the name, phone number, and complete address of the adopting utility;
(II)
the name of the previous utility;
(III)
the number of the tariff adopted and the description or title of the tariff adopted;
(IV)
the number of the tariff after adoption and the description or title of the tariff after
adoption; and
(V)
unless otherwise requested by the applying utility in its application, a statement that the
adopting utility is adopting as its own all rates, rules, terms, conditions, agreements,
concurrences, instruments, and all other provisions that have been filed or adopted by
the previous utility.
5105. - 5107.
[Reserved].
5108.
Tariffs.
(a)
General.
(I)
A utility shall keep on file with the Commission the following documents pertaining to
retail water service or combined retail water and sewer service: its current Colorado
tariffs, forms of contracts, and water or combined water and sewer service agreements.
These documents, unless filed under seal, shall be available for public inspection at the
Commission and at the principal place of business of the utility.
(II)
All tariffs shall comply with rule 1210 of the Commission's Rules of Practice and
Procedure.
mbined retail water and sewer service: its current Colorado
tariffs, forms of contracts, and water or combined water and sewer service agreements.
These documents, unless filed under seal, shall be available for public inspection at the
Commission and at the principal place of business of the utility.
(II)
All tariffs shall comply with rule 1210 of the Commission's Rules of Practice and
Procedure.
(b)
Filing and contents of tariff.
(I)
In addition to the requirements and contents in rule 1210 of the Commission’s Rules of
Practice and Procedure, the following shall be included in a utility's tariff, as applicable:
(A)
information regarding any tariff provisions that specifically allocate the cost of
service connections, other than meters, between the utility and the customer,
pursuant to paragraph 5209(d);
(B)
information regarding its meter testing equipment and facilities, scheduled meter
testing, meter testing records, fees for meter testing upon request, and meter
reading, pursuant to rules 5303, 5304, 5305, and 5309;
(C)
information regarding its benefit of service transfer policies, pursuant to
paragraph 5401(c);
(D)
information regarding its installment payment plans and other plans, pursuant to
rule 5404;

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(E)
information regarding collection fees or miscellaneous service charges, pursuant
to subparagraphs 5403(c)(VI) and (VIII);
(F)
information regarding after-hours restoration fees, pursuant to paragraph
5409(b); and
(G)
all other rules, regulations, and policies covering the relations of customer and
utility.
5109.
New or Changed Tariffs.
(a)
A utility shall file with the Commission any new or changed tariffs. No new or changed tariff shall
be effective unless it is filed with the Commission, and either is allowed to go into effect by
operation of law or is approved by the Commission.
o paragraph
5409(b); and
(G)
all other rules, regulations, and policies covering the relations of customer and
utility.
5109.
New or Changed Tariffs.
(a)
A utility shall file with the Commission any new or changed tariffs. No new or changed tariff shall
be effective unless it is filed with the Commission, and either is allowed to go into effect by
operation of law or is approved by the Commission.
(b)
A utility shall use one of the following processes to seek to add a new tariff or to change an
existing tariff:
(I)
The utility may file the proposed tariff, including the proposed effective date,
accompanied by an advice letter pursuant to rule 1210. The utility shall provide notice in
accordance with rule 1207. If the Commission does not suspend the proposed tariff in
accordance with rule 1305 prior to the tariff’s proposed effective date, the proposed tariff
shall take effect on the proposed effective date.
(II)
The utility may file an application to implement a proposed tariff on less than 30-days’
notice, in accordance with § 40-3-104(2), C.R.S, accompanied by the proposed tariff,
including the proposed effective date. The utility shall provide notice in accordance with
rule 1207. The application shall include the information required in paragraphs 5002(b)
and 5002(c); shall explain the details of the proposed tariff, including financial data if
applicable; shall state the facts which are the basis for the request that the proposed tariff
become effective on less than 30-days’ notice; and shall identify any prior Commission
action, in any proceeding, pertaining to the present or proposed tariff.
(III)
To comply with an order of the Commission, the utility may file a tariff by advice letter to
be effective on not less than two business days' notice, pursuant to paragraph 1207(g) of
the Commission’s Rules of Practice and Procedure. No additional notice beyond the tariff
filing itself shall be required.
5110.
Advice Letters.
n, in any proceeding, pertaining to the present or proposed tariff.
(III)
To comply with an order of the Commission, the utility may file a tariff by advice letter to
be effective on not less than two business days' notice, pursuant to paragraph 1207(g) of
the Commission’s Rules of Practice and Procedure. No additional notice beyond the tariff
filing itself shall be required.
5110.
Advice Letters.
(a)
All advice letter filings shall comply with rule 1210 of the Commission's Rules of Practice and
Procedure.
(b)
In addition to the requirements and contents in rule 1210, the advice letter shall include the
estimated amounts, if any, by which the utility’s revenues will be affected, calculated on an annual
basis.
(c)
Customer notice of advice letter. If the utility is required by statute, Commission rule or order to
provide notice to its customers of the advice letter, such notice shall include the requirements of
subparagraph 5002(d)(I) – (XII).

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5111.
Master Water Meter Operator.
Master water meter operators are exempt from Commission regulation of rates under Articles 1 to 7 of
Title 40, C.R.S., and need not file any tariff with the Commission. Master water meter operators shall use
a methodology that is reasonable, equitable, and consistent for billing end users for any type of water
usage.
5112.
Simplified Regulatory Treatment.
(a)
Definitions. In addition to the definitions generally applicable to water or combined water and
sewer utilities, the following definitions apply only in the context of this rule.
(I)
“Customer” means any person or group of persons receiving or contracting for water
service or combined water and sewer service from any utility for domestic use, for
commercial use, for industrial use, or for wholesale distribution
n addition to the definitions generally applicable to water or combined water and
sewer utilities, the following definitions apply only in the context of this rule.
(I)
“Customer” means any person or group of persons receiving or contracting for water
service or combined water and sewer service from any utility for domestic use, for
commercial use, for industrial use, or for wholesale distribution.
When determining the number of customers that a utility serves, multi-residential units,
multi-commercial units, and wholesale purchasers of water supplying water service to
multiple end-users are customers. In addition, each singular unit or end-user within a
multi-residential unit or multi-commercial unit is a customer. Finally, each singular unit or
end-user that receives water from a wholesale purchaser from the utility is a customer.
(II)
“Small, privately owned water company” means a utility that is owned by one or more
persons, that provides water service or combined water and sewer service, and that
serves fewer than one thousand five hundred customers. “Small privately owned water
company” does not include any utility owned or operated by any political subdivision of
the state; a special district; or any municipal, quasi-municipal, or public corporation
organized pursuant to Colorado law.
(III)
A water company registered as a nonprofit organization under section 501 (c) of the
federal “Internal Revenue Code of 1986”, as amended, 26 U.S.C. sec. 501 (c), is exempt
from regulation under the “Public Utilities Law”, articles 1 to 7 of this title 40.
subdivision of
the state; a special district; or any municipal, quasi-municipal, or public corporation
organized pursuant to Colorado law.
(III)
A water company registered as a nonprofit organization under section 501 (c) of the
federal “Internal Revenue Code of 1986”, as amended, 26 U.S.C. sec. 501 (c), is exempt
from regulation under the “Public Utilities Law”, articles 1 to 7 of this title 40.
(b)
Simplified regulatory treatment. Five options are available for small, privately owned water
companies seeking simplified regulatory treatment. These options are as follows:
(I)
Annual Rate Adjustment Option, as described in subparagraph 5112(e)(I);
(II)
Resource Cost Pass-Through Option, as described in subparagraph 5112(e)(II);
(III)
Operating Ratio Method Option, as described in subparagraph 5112(e)(III);
(IV)
Major Capital Improvements Reserve Option, as described in subparagraph 5112(e)(IV);
and
(V)
Company Specific, Customized Option, as described in subparagraph 5112(e)(V).
(c)
Procedures. The simplified regulatory treatment shall be implemented in the following manner.
(I)
The small, privately owned water company shall file an application with the Commission
requesting one or more of the options identified above. The application shall be filed in
accordance with Commission Rules of Practice and Procedure, 4 CCR 723-1.

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(II)
Contents of application
all be implemented in the following manner.
(I)
The small, privately owned water company shall file an application with the Commission
requesting one or more of the options identified above. The application shall be filed in
accordance with Commission Rules of Practice and Procedure, 4 CCR 723-1.

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(II)
Contents of application. An application for simplified regulatory treatment shall include, in
the following order and specifically identified, the following information, either in the
application or in appropriately identified attached exhibits:
(A)
all information required in paragraphs 5002(b) and 5002(c);
(B)
the requirements of the applicable option, if any, as provided by paragraph (e) of
this rule; and
(C)
an explanation of how approval of the application will balance reasonable
regulatory oversight with the benefits and costs of regulation, while continuing to
consider the public interest, the applicant’s quality of service, the applicant’s
financial condition, and just and reasonable rates.
(III)
Notice of application to customers. Within five days of the filing of the application, the
applicant shall provide notice to its customers of the filing of the application. Such notice
shall be given as follows:
(A)
at the applicant’s local business office, the applicant shall keep open for public
inspection a copy of the application filed with the Commission; and
(B)
within three days of filing the application with the Commission, the applicant
either shall cause notice of the application to be published in each newspaper
having general circulation in each county in which the applicant provides service
or shall provide notice to all its customers by bill insert or direct mail.
n for public
inspection a copy of the application filed with the Commission; and
(B)
within three days of filing the application with the Commission, the applicant
either shall cause notice of the application to be published in each newspaper
having general circulation in each county in which the applicant provides service
or shall provide notice to all its customers by bill insert or direct mail.
(i)
Either form of notice shall meet the requirements of subparagraphs
5002(d)(I) – (XII).
(ii)
If the applicant elects to provide notice through bill inserts or direct mail
to its customers, the applicant shall also work with each aggregate water
service provider in its service area to ensure notice is provided to end-
use customers served by the aggregate arrangement.
(IV)
In a proceeding to review an application for simplified regulatory treatment, there is a
rebuttable presumption that each of the options listed in subparagraphs 5112(b)(I)
through (b)(IV) is a reasonable method of simplified regulatory treatment for an applicant
that is a small, privately owned water company. The presumption may be rebutted by
data or evidence, or both, that demonstrate that the requested option is not reasonable
for the applicant.
(V)
In a proceeding to review an application for simplified regulatory treatment, there is no
rebuttable presumption for a small, privately owned water company seeking a Company
Specific, Customized Option pursuant to subparagraph 5112(b)(V). The applicant shall
have the burden of proving that the Company Specific, Customized Option proposed by
the company is reasonable for the applicant and its customers and that the requested
option is not discriminatory.
(VI)
A small, privately owned water company is prohibited from participating, at the same
time, in both the Annual Rate Adjustment Option and the Resource Cost Pass-Through
Option.

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fic, Customized Option proposed by
the company is reasonable for the applicant and its customers and that the requested
option is not discriminatory.
(VI)
A small, privately owned water company is prohibited from participating, at the same
time, in both the Annual Rate Adjustment Option and the Resource Cost Pass-Through
Option.

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(VII)
A small, privately owned water company that has been granted simplified regulatory
treatment may file an application to change to an alternative simplified regulatory
treatment at any time. The application shall request authorization to terminate the existing
simplified regulatory treatment and shall request a new simplified regulatory treatment.
With respect to the new form of simplified regulatory treatment sought, the application
shall contain the information required by subparagraph (c)(II) of this rule. In addition, the
applicant shall provide notice of the application as required by subparagraph (c)(III) of
this rule.
(VIII)
A small, privately owned water company may file an application to terminate an existing
simplified regulatory treatment and to return to traditional rate base regulation at any
time. The application shall comply with the requirements of paragraph (g) of this rule. In
addition, the applicant shall provide notice of the application as required by subparagraph
(c)(III) of this rule. The Commission may set the application for hearing, and existing rates
for services may be adjusted. At the conclusion of such a proceeding and upon the filing
of appropriate tariffs, the rates, terms, and conditions established in the proceeding will
replace the rates and conditions developed under the company’s existing simplified
regulatory treatment plan.
(IX)
A small, privately owned water company shall not be permitted to terminate participation
in one or more simplified regulatory treatment options for the purpose of avoiding a
potential decrease in rates to its customers
he rates, terms, and conditions established in the proceeding will
replace the rates and conditions developed under the company’s existing simplified
regulatory treatment plan.
(IX)
A small, privately owned water company shall not be permitted to terminate participation
in one or more simplified regulatory treatment options for the purpose of avoiding a
potential decrease in rates to its customers.
(X)
Nothing in these rules shall limit a customer’s right to file a complaint against a small,
privately owned water company. Nothing in these rules shall prohibit or restrict the
Commission from initiating an investigation or complaint proceeding against a small,
privately owned water company.
(d)
Reporting requirements. As part of its annual report to the Commission, each small, privately
owned water company that has been granted simplified regulatory treatment shall provide a count
of all customers served by the utility. To comply with this requirement, the utility shall require
multi-residential entities, multi-commercial entities, and wholesale purchasers of water supplying
water service to multiple end-users, annually to furnish the utility with a count of the number of
singular units receiving water services directly or indirectly from such entities. In the event the
small, privately owned water company fails to obtain annually or fails to submit annually the
customer count information to the Commission, the Commission may revoke or may deny
simplified regulatory treatment for that company.
end-users, annually to furnish the utility with a count of the number of
singular units receiving water services directly or indirectly from such entities. In the event the
small, privately owned water company fails to obtain annually or fails to submit annually the
customer count information to the Commission, the Commission may revoke or may deny
simplified regulatory treatment for that company.
(e)
Simplified regulatory treatment options. The Commission may grant a small, privately owned
water company the authority to participate in any of the following simplified regulatory treatment
options:
(I)
Annual Rate Adjustment Option. If it desires to participate in this option, a small, privately
owned water company shall file an application for authorization to use the Commission-
determined annual rate adjustment. If the Commission grants the application, then the
small, privately owned water company shall use the following process to adjust rates on
an annual basis:
(A)
On or before March 31 of each year, by letter, the Commission shall inform all
participants in the Annual Rate Adjustment Option of the rate adjustment to be
effective May 1 of that year. As prescribed by subparagraph (e)(I)(B) of this rule,
the percentage adjustment shall be determined using the following figures:

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(i)
the annual percent change in the United States Gross Domestic Product
Chain-Type Price Index (GDPPI) as published by the United States
Department of Commerce, Bureau of Economic Analysis, and as
published in the Economic Report of the President; and
e percentage adjustment shall be determined using the following figures:

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(i)
the annual percent change in the United States Gross Domestic Product
Chain-Type Price Index (GDPPI) as published by the United States
Department of Commerce, Bureau of Economic Analysis, and as
published in the Economic Report of the President; and
(ii)
an appropriate measure of productivity, specifically the “Private and Non-
Farm Business Multifactor Productivity Percentage Change” (PNFBMPP)
as published by the Bureau of Labor Statistics, and as published in The
Economic Report of the President.
(B)
The percentage adjustment formula is:
Price Adjustment = GDPPI – PNFBMPP
(C)
On or before April 15 of each year, each small, privately owned water company
participating in the Annual Rate Adjustment Option shall file an advice letter and
accompanying tariff sheets with the Commission to implement the rate change
effective May 1.
(II)
Resource Cost Pass-through Option. If it desires to participate in this option, a small,
privately owned water company shall file an application for authorization to pass-through
price changes (increases and decreases) relating to the acquisition cost for wholesale
water from a local municipality, other governmental entity, or other source as approved
by the Commission. The small, privately owned water company may include in its
application a request for Commission approval to include other utility expenditures
ordered by a governmental entity
authorization to pass-through
price changes (increases and decreases) relating to the acquisition cost for wholesale
water from a local municipality, other governmental entity, or other source as approved
by the Commission. The small, privately owned water company may include in its
application a request for Commission approval to include other utility expenditures
ordered by a governmental entity. (Examples of such other expenditures include, but are
not limited to, changes in water augmentation assessments and changes in costs
associated with compliance with provisions of the Safe Drinking Water Act of 1974.)
Following Commission approval to participate in the Resource Cost Pass-through Option,
the small, privately owned water company shall timely inform the Commission of all
increases or decreases in the cost of water and shall file an advice letter to implement all
resulting changes in customer rates within 30 days of the effective date of the price
change for wholesale water.
(III)
Operating Ratio Methodology Option. If it desires to participate in this option, a small,
privately owned water company shall file an application for authorization to use an
operating ratio methodology in determining the appropriate rates to be charged by the
small, privately owned water company. An operating ratio methodology for setting rates
differs from a traditional rate base methodology and may be an acceptable tool in
evaluating rates when little or no rate base exists.
(IV)
Reserve Account for Major Capital Improvements Option. If it desires to participate in this
option, a small, privately owned water company shall file an application for authorization
to establish a reserve account to fund future major capital expenditures and to implement
a monthly surcharge to fund a reserve account for future capital improvement
expenditures
n little or no rate base exists.
(IV)
Reserve Account for Major Capital Improvements Option. If it desires to participate in this
option, a small, privately owned water company shall file an application for authorization
to establish a reserve account to fund future major capital expenditures and to implement
a monthly surcharge to fund a reserve account for future capital improvement
expenditures. In filing an application to initiate this option or to amend any provisions of
this option, the small, privately owned water company shall clearly identify both the
proposed method for collecting funds to be contributed to the reserve account and the
expected use of such funds.

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(A)
The Commission must approve both the specific level of funds to be collected
and the specific method for collecting money for the reserve account for major
capital improvements. Accordingly, in its application, the applicant shall submit
sufficient financial information for the Commission to review the company’s
proposed capital improvement needs and shall explain the merits of its funding
methodology. The small, privately owned water company that seeks
authorization to implement the Reserve Account for Major Capital Improvements
Option shall have the burden of establishing that actual or proposed expenditures
are reasonable and in the public interest.
(B)
Funds in the reserve account shall be kept in a separate interest-bearing cash
account. Interest accrued shall be credited to the reserve account and shall
become part of the corpus of the reserve account. Funds from the account shall
not be used for any purpose other than those permitted under this option and
authorized by the Commission. Disbursements from the fund shall be restricted
to the uses specifically approved by the Commission
t in a separate interest-bearing cash
account. Interest accrued shall be credited to the reserve account and shall
become part of the corpus of the reserve account. Funds from the account shall
not be used for any purpose other than those permitted under this option and
authorized by the Commission. Disbursements from the fund shall be restricted
to the uses specifically approved by the Commission.
(C)
The small, privately owned water company shall report all disbursements from
the reserve account by written notice to the Commission and to other persons as
the Commission may direct. Disbursements from the reserve account that are
found by the Commission to have been made improperly, or to have been made
in violation of any statute, regulation, or order of the Commission, shall be
returned to the account or refunded to ratepayers as the Commission may direct.
(D)
Plant capitalized by means of the reserve account shall be accounted for as a
contribution in aid of construction.
(V)
Company Specific, Customized Option. If it desires to participate in this option, a small,
privately owned water company shall file an application for authorization to implement a
company specific, customized regulatory plan. The Commission will consider the merits
of all specific options presented and will determine, in its discretion, whether some or all
of the provisions are consistent with the objectives of these rules.
(A)
In a proceeding on an application filed under this option, the small, privately
owned water company shall bear the burden of proving that:
plement a
company specific, customized regulatory plan. The Commission will consider the merits
of all specific options presented and will determine, in its discretion, whether some or all
of the provisions are consistent with the objectives of these rules.
(A)
In a proceeding on an application filed under this option, the small, privately
owned water company shall bear the burden of proving that:
(i)
the provisions of the proposed company specific, customized regulatory
treatment appropriately balance reasonable regulatory oversight with the
benefits and costs of regulation;
(ii)
the proposed provisions are not discriminatory; and
(iii)
implementing the proposed company specific, customized regulatory
treatment is in the public interest, improves the quality of water service or
combined water and sewer service to customers, is financially
compensatory, and promotes the development and maintenance of just
and reasonable rates.
(B)
Under this option, the small, privately owned water company must maintain
accounting records to provide sufficient financial information for the Commission
to assess the merits of the proposed company specific, customized regulatory
treatment and its projected impact on the company.

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(f)
Transitional provisions. When the number of customers served by the utility, as reported in its
annual report to the Commission, reaches or exceeds 1,500, the utility no longer meets the
definition of small, privately owned water utility and is no longer eligible for simplified regulatory
treatment. Within 30 days of filing the annual report that shows that it has 1,500 or more
customers, a utility shall file with the Commission one of the following:
(I)
an application that contains a proposed transitional regulatory plan to move the utility
from simplified regulatory treatment to rate of return regulation
tely owned water utility and is no longer eligible for simplified regulatory
treatment. Within 30 days of filing the annual report that shows that it has 1,500 or more
customers, a utility shall file with the Commission one of the following:
(I)
an application that contains a proposed transitional regulatory plan to move the utility
from simplified regulatory treatment to rate of return regulation. The application shall
comply with paragraph (g) of this rule; or
(II)
an application for authorization to continue its existing simplified regulatory treatment
plan. The application shall comply with paragraph (h) of this rule. The Commission, in its
discretion, may permit a utility whose customer count exceeds the established limit to its
existing simplified regulatory treatment plan.
(g)
An application for authority to move from simplified regulatory treatment to rate of return
regulation shall include, in the following order, the following information either in the application or
in the appropriately identified attached exhibits:
(I)
all the information required by paragraphs 5002(b) and 5002(c);
(II)
the reasons for the move to rate of return regulation;
(III)
a statement of the rates to be charged following the return to rate of return regulation;
and
(IV)
the information (including customer notice) required by rule 5110.
(h)
An application filed pursuant to subparagraph (f)(II) of this rule shall include, in the following
order, the following information either in the application or in the appropriately identified attached
exhibits:
(I)
all the information required by paragraphs 5002(b) and 5002(c);
(II)
a statement of each of the utility’s reasons for seeking to retain its existing simplified
regulatory treatment plan;
(III)
for each stated reason, a statement of the facts (not conclusory statements) relied upon
by the utility to support the stated reason;
(IV)
a reference (by proceeding number, decision number, and date) to the Commission
decision that authorized the utility to participate in the simplified reg
ach of the utility’s reasons for seeking to retain its existing simplified
regulatory treatment plan;
(III)
for each stated reason, a statement of the facts (not conclusory statements) relied upon
by the utility to support the stated reason;
(IV)
a reference (by proceeding number, decision number, and date) to the Commission
decision that authorized the utility to participate in the simplified regulatory treatment that
the utility seeks to continue; and
(V)
an explanation of how approval of the application will balance reasonable regulatory
oversight with the benefits and costs of regulation, while continuing to consider the public
interest, the applicant’s quality of service, the applicant’s financial condition, and just and
reasonable rates.
5113. - 5199.
[Reserved].

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FACILITIES
5200.
Construction, Installation, Maintenance, and Operation.
The plant, equipment, and facilities of a utility shall be constructed, installed, inspected, maintained, and
operated in accordance with accepted engineering practice in the water and sewer industries to assure
continuity of service, uniformity in the quality of service, and the safety of persons and property.
5201.
Instrumentation.
Each utility shall install such indicating instruments or meters as may be necessary to obtain records of
the water flow volume(s) of its plants. Each utility purchasing water shall install such instruments or
meters as may be necessary to furnish the Commission with full information related to the purchases,
including purchase dates, sources, volumes, and unit costs. Each utility shall keep a record of its periodic
readings of such instruments.
5202.
Purity and Pressure.
ecessary to obtain records of
the water flow volume(s) of its plants. Each utility purchasing water shall install such instruments or
meters as may be necessary to furnish the Commission with full information related to the purchases,
including purchase dates, sources, volumes, and unit costs. Each utility shall keep a record of its periodic
readings of such instruments.
5202.
Purity and Pressure.
(a)
Each utility supplying water for domestic, commercial, or industrial purposes shall ensure that all
water intended for human consumption and general household purposes is free from disease
producing organisms, bacteria, and injurious chemical and physical substances, and is agreeable
to sight and smell.
(b)
Each utility supplying water for domestic, commercial, or industrial purposes shall maintain a
steady pressure, not at any time falling below the adequate minimum for domestic service. Each
utility furnishing fire hydrant service must be able to supply added service to local fire fighting
equipment and facilities in accordance with the best standard practice. A utility shall maintain
pressure and keep records as required by the Water Quality Control Division of CDPHE or county
or municipal codes or ordinances.
(c)
A utility providing combined water and sewer service shall comply with the effluent limits outlined
in the utility’s Colorado Discharge Permit System permit issued by the Water Quality Control
Division of CDPHE.
5203.
Interruptions of Service.
(a)
Each utility shall keep a record of every service interruption (including, without limitation, forced
outages caused by events outside of the utility’s control, scheduled outages, or sustained
outages) which occurs on its entire system or on a major division of its system. The record shall
include at least a statement of the time, the duration, and the cause of any service interruption.
rvice.
(a)
Each utility shall keep a record of every service interruption (including, without limitation, forced
outages caused by events outside of the utility’s control, scheduled outages, or sustained
outages) which occurs on its entire system or on a major division of its system. The record shall
include at least a statement of the time, the duration, and the cause of any service interruption.
(b)
The records of service interruptions and a statement of the utility’s operating schedules shall be
open at all times to the inspection of the duly authorized representatives of the Commission. The
utility shall retain these records for five years.
(c)
Not later than 30 days following the beginning of each service interruption, utilities shall file with
the Commission into the proceeding opened for such purpose a report of each interruption of
service lasting longer than 24 hours.
(d)
During times of threatened or actual water shortage a utility shall equitably apportion its available
water supply among its customers with due regard to public health and safety and provide notice
thereof to customers. Not later than 30 days following the date of the notice, utilities shall file with
the Commission a copy of such notice.
(e)
If a utility must restrict water distribution, it shall, except in emergencies:

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(I)
give advance written notice to the Commission, as prescribed by paragraph (d) of this
rule; and
(II)
give advance written notice to the utility's customers, as prescribed by paragraph (d) of
this rule.
he Commission a copy of such notice.
(e)
If a utility must restrict water distribution, it shall, except in emergencies:

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(I)
give advance written notice to the Commission, as prescribed by paragraph (d) of this
rule; and
(II)
give advance written notice to the utility's customers, as prescribed by paragraph (d) of
this rule.
(f)
The notice contemplated by paragraph (c) of this rule shall contain the following information:
(I)
the reason for the restriction;
(II)
the nature and extent of the restriction, including outdoor use, use by certain classes of
customers, and similar matters;
(III)
the date such restriction is to go into effect; and
(IV)
the probable date of termination of such restriction.
5204.
Incidents Resulting in Death, Serious Injury or Significant Property Damage.
(a)
Each utility shall inform the Commission of all incidents which occur in connection with the
operation of its property, facilities, or service that result in death, serious injury, or significant
property damage within two hours of learning of the incident.
(b)
Within 30 calendar days of the incident, the utility shall submit a written report to the Director of
the Commission. The report shall contain at least the following information:
(I)
date, time, place, and location of the incident;
(II)
type of incident;
(III)
names of all persons involved; and
(IV)
nature and extent of injury and damage.
(c)
If the utility conducts an internal investigation of an incident referred to in paragraph (a) above,
the utility shall make its report available to the Commission upon request by the Commission. The
utility may provide subparagraphs (b)(III) and (b)(IV) of this report on a confidential basis under
seal.
5205. - 5208.
[Reserved].
5209.
Service Connections.
ature and extent of injury and damage.
(c)
If the utility conducts an internal investigation of an incident referred to in paragraph (a) above,
the utility shall make its report available to the Commission upon request by the Commission. The
utility may provide subparagraphs (b)(III) and (b)(IV) of this report on a confidential basis under
seal.
5205. - 5208.
[Reserved].
5209.
Service Connections.
(a)
Upon application of a bona fide applicant for service, the utility shall furnish, install, and maintain
service pipe of suitable capacity, including the curb cock and curb box required, from its water
main to the property line and, for combined water and sewer providers, from its sewer main to the
property line.
(b)
Except as provided in paragraphs (c) and (d) of this rule, service connections shall be furnished,
installed, and maintained at the expense of the utility.
(c)
All meters used in connection with metered service shall be furnished, installed, and maintained
at the expense of the utility, unless the Commission grants special authority to the contrary for
good cause.

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(d)
The utility may seek approval of tariff provisions that specifically allocate the cost of service
connections, other than meters, between the utility and the customer. Such tariff proposals shall
specify the terms and conditions that initiate such cost allocation. The utility shall account for all
such funds received from customers as a contribution in aid of construction.
(e)
All facilities furnished or installed at the expense of the utility shall remain the utility's property and
may be removed by the utility at any time after discontinuance of service.
5210.
Line Extension.
(a)
Each utility shall have tariffs which set out its line extension policies, procedures, and conditions.
for all
such funds received from customers as a contribution in aid of construction.
(e)
All facilities furnished or installed at the expense of the utility shall remain the utility's property and
may be removed by the utility at any time after discontinuance of service.
5210.
Line Extension.
(a)
Each utility shall have tariffs which set out its line extension policies, procedures, and conditions.
(b)
Specific tariff provisions for making service connections, for transmission line extensions, and for
distribution line extensions shall include:
(I)
service connections and distribution line extensions by customer class and the
appropriate terms and conditions under which those connections and extensions will be
made;
(II)
provisions requiring the utility to provide to a customer or to a potential customer, upon
request, service connection information necessary to allow the customer's or potential
customer's facilities to be connected to the utility's system;
(III)
provisions requiring the utility to exercise due diligence in providing the customer or
potential customer with an estimate of the anticipated cost of a connection or extension;
(IV)
provisions addressing steps to ameliorate the rate and service impact upon existing
customers, including equitably allowing future customers to share costs incurred by the
initial or existing customers served by a connection or extension (as, for example, by
including a refund of customer connection or extension payments when appropriate); and
(V)
a description of specific customer categories (such as permanent, indeterminate, and
temporary) within each customer class.
5211. – 5299.
[Reserved].
METERS
5300.
Service Meters and Related Equipment.
(a)
All meters used in connection with water metered service for billing purposes shall be furnished,
installed, and maintained at the expense of the utility.
sion payments when appropriate); and
(V)
a description of specific customer categories (such as permanent, indeterminate, and
temporary) within each customer class.
5211. – 5299.
[Reserved].
METERS
5300.
Service Meters and Related Equipment.
(a)
All meters used in connection with water metered service for billing purposes shall be furnished,
installed, and maintained at the expense of the utility.
(b)
All equipment, devices, or facilities furnished at the expense of the utility or for which the utility
bears the expense of maintenance and renewal, including service meters, shall remain the
property of the utility and may be removed by it at any time after discontinuance of service.
(c)
Each service meter shall clearly indicate the units of service in cubic feet or gallons for which
charge is made to the customer. In cases where the register reading of a meter must be
multiplied by a constant to obtain the units consumed, such constant shall be clearly marked on
the meter.

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5301.
Location of Service Meters.
As of the time of meter installation, meters shall be located in conformity with the utility’s tariffs and in
accordance with:
(a)
applicable local building codes; and
(b)
applicable meter placement standards.
5302.
[Reserved].
5303.
Meter Testing Equipment and Facilities.
(a)
Each utility furnishing metered water service shall, unless specifically exempted by the
Commission, provide such meter laboratory, standard meters, instruments, and other equipment
and facilities as may be necessary to make the tests required by these rules. Such equipment
and facilities shall be acceptable to the Commission and shall be available at all reasonable times
for inspection by the Commission's authorized representatives.
service shall, unless specifically exempted by the
Commission, provide such meter laboratory, standard meters, instruments, and other equipment
and facilities as may be necessary to make the tests required by these rules. Such equipment
and facilities shall be acceptable to the Commission and shall be available at all reasonable times
for inspection by the Commission's authorized representatives.
(b)
Each utility shall make such tests as are prescribed under these rules with such frequency, in
such manner, and at such places as may be approved by this Commission. Each utility shall file
an application for approval of such testing practices. The application shall include:
(I)
the information required by paragraphs 5002(b) and 5002(c);
(II)
a description of the test methods employed and the frequency of tests or observations for
determining volume of water consumed;
(III)
a description of meter testing equipment, including methods employed to ascertain and
maintain accuracy of all testing equipment;
(IV)
rules covering testing and adjustment of service meters when installed and periodic tests
after installation; and
(V)
supporting information and justification for the items listed in subparagraphs (I) through
(IV) of this paragraph.
(c)
Revisions to any portion of an approved application identified in paragraph (b) of this rule shall
only be accomplished by the filing and approval of a new application.
(d)
If the utility does not have suitable means for testing, the utility must have a certificate from the
meter manufacturer showing that each meter has been tested for accuracy.
(e)
The utility shall keep records of certification and calibrations for all testing equipment required by
this rule for the life of the equipment.
(f)
In its tariff, each utility shall include a description of its meter testing equipment and of the
methods employed to ascertain and maintain accuracy of all testing equipment.
meter manufacturer showing that each meter has been tested for accuracy.
(e)
The utility shall keep records of certification and calibrations for all testing equipment required by
this rule for the life of the equipment.
(f)
In its tariff, each utility shall include a description of its meter testing equipment and of the
methods employed to ascertain and maintain accuracy of all testing equipment.
(g)
For those paragraphs of this rule which require a utility to maintain facilities and equipment, a
utility may meet those requirements by having the facilities and equipment readily available (as,
for example and without limitation, by contracting with a testing facility). A utility which uses this
paragraph of the rule is responsible for its compliance with the provisions of this entire rule.

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(h)
For those paragraphs of this rule which require a utility to test or to maintain equipment, a utility
may meet those requirements by having the equipment tested by a third party (as, for example
and without limitation, an independent testing facility). A utility which uses this paragraph of the
rule is responsible for its compliance with the provisions of this entire rule.
5304.
Scheduled Meter Testing.
(a)
Each utility shall test or shall arrange for testing of service meters in accordance with the
schedule in this rule or in accordance with a sampling program approved by the Commission. The
utility shall file an application to request approval of such sampling programs.
(b)
Every service meter must be tested and adjusted either before installation or no later than 60
days thereafter.
(c)
Every service meter must be periodically tested as shown below:
(I)
meter size of 1/2 or 5/8 inch, every ten years;
(II)
meter size of 3/4 inch, every eight years;
(III)
meter size of 1 inch, every six years; and
(IV)
meter size of 1 1/2 inch an above, every four years.
programs.
(b)
Every service meter must be tested and adjusted either before installation or no later than 60
days thereafter.
(c)
Every service meter must be periodically tested as shown below:
(I)
meter size of 1/2 or 5/8 inch, every ten years;
(II)
meter size of 3/4 inch, every eight years;
(III)
meter size of 1 inch, every six years; and
(IV)
meter size of 1 1/2 inch an above, every four years.
(d)
In its tariff, each utility shall include a description of the utility’s practices concerning:
(I)
testing and adjustment of service meters at installation;
(II)
periodic testing after installation; and
(III)
certification and calibration of meters.
(e)
If a utility chooses to use a sampling program, a utility shall file an application to request approval
of such sampling program. The application shall include:
(I)
the information required by paragraphs 5002(b) and 5002(c);
(II)
a description of the sampling program which the utility wishes to use. This description
shall include, at a minimum the following:
(A)
the type(s) of meters subject to the sampling plan;
(B)
the frequency of testing;
(C)
the procedures to be used for the sampling;
(D)
the reference standard to be used for testing;
(E)
the accuracy of the testing and of the sampling plan; and
(III)
An explanation of the reason(s) for the requested sampling program.
(IV)
An analysis which demonstrates that, with respect to assuring the accuracy of
the service meters tested, the requested sampling program is at least as effective
as the schedule in this rule.

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(f)
Revisions to any portion of a sampling program approved pursuant to paragraph (e) of this rule
shall be accomplished by the filing of, and Commission approval of, a new application.
5305.
Meter Testing Upon Request.
rvice meters tested, the requested sampling program is at least as effective
as the schedule in this rule.

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(f)
Revisions to any portion of a sampling program approved pursuant to paragraph (e) of this rule
shall be accomplished by the filing of, and Commission approval of, a new application.
5305.
Meter Testing Upon Request.
(a)
Each utility furnishing metered water service shall make a test of the accuracy of any water
service meter upon request of a customer. The test shall be conducted free of charge if the meter
has not been tested within the previous 12 months and the customer agrees to accept the results
of the test for the purposes of any dispute or informal complaint regarding the meter’s accuracy;
otherwise, the utility may charge a fee for performing the test. The utility shall provide a written
report of the test results to the customer and maintain a copy on file for at least two years.
(b)
Should a customer request and receive a meter test as prescribed in paragraph 5305(a) and
continue to dispute the accuracy of a meter, upon written request by a customer the utility shall
make the disputed meter available for independent testing by a qualified meter testing facility of
the customer’s choosing. The customer is not entitled to take physical possession of the disputed
meter. To be a qualified meter testing facility, the testing facility must be capable of testing the
meter to meet all meter standards and requirements required by these rules.
customer the utility shall
make the disputed meter available for independent testing by a qualified meter testing facility of
the customer’s choosing. The customer is not entitled to take physical possession of the disputed
meter. To be a qualified meter testing facility, the testing facility must be capable of testing the
meter to meet all meter standards and requirements required by these rules.
(c)
This rule applies only when there is disagreement between the customer and the utility regarding
the accuracy of the meter. If, upon completion of an independent test as prescribed in paragraph
5305(b), the disputed meter is found to be accurate within the limits of rule 5302, the customer
shall bear all costs associated with conducting the test. If, upon completion of an independent test
as prescribed in paragraph 5305(b), the disputed meter is found to be inaccurate beyond the
limits prescribed in rule 5302, the utility shall bear all costs associated with conducting the test.
(d)
A utility shall identify in its tariff the rates, terms, and conditions for all fees associated with
customer-requested meter testing conducted within 12 months of a prior test.
5306.
Records of Tests and Meters.
(a)
A utility shall maintain a record for each meter owned or used by the utility, showing the date of
purchase, manufacturer's serial number, record of the present location, and date and results of
the last test performed by the utility, which record shall be retained for the life of the meter plus 30
months.
r testing conducted within 12 months of a prior test.
5306.
Records of Tests and Meters.
(a)
A utility shall maintain a record for each meter owned or used by the utility, showing the date of
purchase, manufacturer's serial number, record of the present location, and date and results of
the last test performed by the utility, which record shall be retained for the life of the meter plus 30
months.
(b)
Whenever a meter is tested either on request or upon complaint, the test record shall include the
information necessary for identifying the meter, the reason for making the test, the reading of the
meter if removed from service, the result of the test, together with all data taken at the time of the
test in a sufficiently complete form to permit the convenient checking of the methods employed
and the calculations made. Such record shall be retained for at least two years.
5307 - 5308.
[Reserved].
5309.
Meter Reading.
(a)
Upon the customer's request, the utility shall provide written documentation identifying the date of
the most recent reading of the customer’s meter, and the total usage expressed in gallons or
other unit of service recorded. On request, a utility supplying metered service shall explain to a
customer its method of reading meters.
(b)
A utility shall include in its tariff a clear statement describing when meters will be read by the
utility and the circumstances, if any, under which the customer must read the meter and submit
the data to the utility. This statement shall specify in detail the procedure that the customer must
follow and shall specify all conditions that apply to each class of service.

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statement describing when meters will be read by the
utility and the circumstances, if any, under which the customer must read the meter and submit
the data to the utility. This statement shall specify in detail the procedure that the customer must
follow and shall specify all conditions that apply to each class of service.

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(c)
Absent good cause, a utility shall read a meter monthly. For good cause shown, a utility shall
read a meter at least once every six months.
5310. - 5399.
[Reserved].
BILLING AND SERVICE
5400.
Applicability.
Rules 5400 through 5410 apply to residential customers and to commercial customers served by a
utility’s rates or tariffs. In its tariffs, a utility may elect to apply the same or different terms and conditions
of service to other customer classes
5401.
Billing Information and Procedures.
(a)
All bills issued to customers for metered service furnished shall show:
(I)
the dates and meter readings, if applicable, beginning and ending the period during which
service was rendered;
(II)
an appropriate rate or rate code identification;
(III)
net amount due for regulated charges;
(IV)
the date by which payment is due, which shall not be earlier than 15 days after the
mailing or the hand-delivery of the bill;
(V)
a distinct marking to identify an estimated bill;
(VI)
the total amount of all payments or other credits made to the customer’s account during
the billing period;
(VII)
any past due amount. Unless otherwise stated in a tariff or Commission rule, an account
becomes “past due” on the 31st day following the due date of current charges;
(VIII)
any transferred amount or balance from any account other than the customer’s current
account; and
(IX)
all other essential facts upon which the bill is based, including factors and constants, as
applicable.
illing period;
(VII)
any past due amount. Unless otherwise stated in a tariff or Commission rule, an account
becomes “past due” on the 31st day following the due date of current charges;
(VIII)
any transferred amount or balance from any account other than the customer’s current
account; and
(IX)
all other essential facts upon which the bill is based, including factors and constants, as
applicable.
(b)
A utility that bills for unregulated services or goods shall allocate partial payments first to
regulated charges and then to unregulated charges or non-tariffed charges and to the oldest
balance due separately within each category.
(c)
A utility that transfers to a customer a balance from the account of a person other than that
customer shall have in its tariff the utility’s benefit of service transfer policies and criteria. The
tariff shall contain an explanation of the process by which the utility will verify, prior to billing a
customer under the benefit of service tariff, that the person to be billed in fact received the benefit
of service.
(d)
A utility may transfer a prior unpaid debt to a customer’s bill if the prior bill was in the name of the
customer and the utility has informed the customer of the transferred amount and of the source of
the unpaid debt (for example, and without limitation, the address of the premises to which service
was provided and the period during which service was provided).

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ebt to a customer’s bill if the prior bill was in the name of the
customer and the utility has informed the customer of the transferred amount and of the source of
the unpaid debt (for example, and without limitation, the address of the premises to which service
was provided and the period during which service was provided).

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(e)
If it is offered in a tariff, upon request from a customer and where it is technically feasible, a utility
may have the option to provide electronic billing (e-billing), in lieu of a typed or machine-printed
bill, to the requesting customer. If a utility offers the option of e-billing, the following shall apply:
(I)
the utility shall obtain the affirmative consent of a customer to accept such a method of
billing in lieu of printed bills;
(II)
the utility shall not charge a fee for billing through the e-billing option;
(III)
the utility shall not charge a fee based on customer payment options that is different from
the fee charged for the use of the same customer payment options by customers who
receive printed bills; and
(IV)
a bill issued electronically shall contain the same disclosures and Commission-required
information as those contained in the printed bill provided to other customers.
(f)
A utility may accept electronic payments and collect any merchant fees associated with electronic
payments. However, if electronic payments are accepted, the utility shall take reasonable steps to
protect private customer information.
5402.
Adjustments for Meter and Billing Errors.
sclosures and Commission-required
information as those contained in the printed bill provided to other customers.
(f)
A utility may accept electronic payments and collect any merchant fees associated with electronic
payments. However, if electronic payments are accepted, the utility shall take reasonable steps to
protect private customer information.
5402.
Adjustments for Meter and Billing Errors.
(a)
A utility shall adjust customer charges for water incorrectly metered or billed as follows:
(I)
When, upon any meter accuracy test, a meter is found to be running slow in excess of
error tolerance levels allowed under rule 5302, the utility may charge for one-half of the
weighted average error for the period dating from the discovery of the meter error back to
the previous meter test, with such period not to exceed six months.
(II)
When, upon any meter accuracy test, a meter is found to be running fast in excess of
error tolerance levels allowed under rule 5302, the utility shall refund one-half of the
weighted average error for the period dating from the discovery of the meter error back to
the previous meter test, with such period not to exceed two years.
(III)
When a meter does not register, registers intermittently, or partially registers for any
period, the utility may estimate, using the method stated in its tariff, a charge for the water
used based on amounts metered to the customer over similar periods in previous years.
The period for which the utility charges the estimated amount shall not exceed six
months.
(IV)
In the event of under-billings not provided for in subparagraphs (I) or (III) of this rule (such
as an incorrect multiplier, register, or billing error), the utility may charge for the period
during which the under-billing occurred, with such period not to exceed six months.
(V)
In the event of over-billings not provided for in subparagraph (II) of this rule, the utility
shall refund for the period during which the over-billing occurred, with such period not to
exceed two years.
is rule (such
as an incorrect multiplier, register, or billing error), the utility may charge for the period
during which the under-billing occurred, with such period not to exceed six months.
(V)
In the event of over-billings not provided for in subparagraph (II) of this rule, the utility
shall refund for the period during which the over-billing occurred, with such period not to
exceed two years.
(b)
The periods set out in paragraph (a) of this rule shall commence on the date on which either (1)
the customer notifies the utility or the utility notifies the customer of a meter or billing error, or (2)
the customer informs the utility of a billing or metering error dispute or makes an informal
complaint to the External Affairs section of the Commission.

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(c)
In the event of an over-billing, the customer may elect to receive the refund as a credit to future
billings or as a one-time payment. If the customer elects a one-time payment, the utility shall
make the refund within 30 days. Such over-billings shall not be subject to interest.
(d)
In the event of under-billing, the customer may elect to enter into a payment arrangement on the
under-billed amount. The payment arrangement shall be equal in length to the length of time
during which the under-billing lasted. Such under-billings shall not be subject to interest.
5403.
Applications for Service, Customer Deposits, and Third-Party Guarantee Arrangements.
(a)
A utility shall process an application for utility service which is made either orally or in writing and
shall apply nondiscriminatory criteria with respect to the requirement of a cash deposit prior to
commencement of service.
e under-billing lasted. Such under-billings shall not be subject to interest.
5403.
Applications for Service, Customer Deposits, and Third-Party Guarantee Arrangements.
(a)
A utility shall process an application for utility service which is made either orally or in writing and
shall apply nondiscriminatory criteria with respect to the requirement of a cash deposit prior to
commencement of service.
(b)
If billing records are available for a customer who has received service from the utility, the utility
shall not require that person to make new or additional cash deposits to guarantee payment of
current bills unless the records indicate recent or substantial delinquencies. All customers shall
be treated without undue discrimination with respect to cash deposit requirements, pursuant to
the utility's tariff.
(c)
A utility shall not require a cash deposit from an applicant for service who provides written
documentation of a 12 consecutive month good credit history from the utility from which that
person received similar service. For purposes of this paragraph, the 12 consecutive months must
have ended no earlier than 60 days prior to the date of the application for service.
(d)
If a utility uses credit scoring to determine whether to require a cash deposit from an applicant for
service or a customer, the utility shall have a tariff which describes, for each scoring model that it
uses, the credit scoring evaluation criteria and the credit score limit which triggers a cash deposit
requirement.
(e)
All utilities requiring deposits shall offer customers at least one non-cash alternative that does not
require the use of the customer’s social security number, in lieu of a cash deposit.
(f)
If a utility uses credit scoring, prior payment history with the utility, or customer-provided prior
payment history with a like utility as a criterion for establishing the need for a cash deposit, the
utility shall include in its tariff the specific evaluation criteria which trigger the need for a cash
deposit.
quire the use of the customer’s social security number, in lieu of a cash deposit.
(f)
If a utility uses credit scoring, prior payment history with the utility, or customer-provided prior
payment history with a like utility as a criterion for establishing the need for a cash deposit, the
utility shall include in its tariff the specific evaluation criteria which trigger the need for a cash
deposit.
(g)
If a utility denies an application for service or requires a cash deposit as a condition of providing
service, the utility immediately shall inform the applicant for service of the decision and shall
provide, within three business days, a written explanation to the applicant for service stating the
reasons the application for service has been denied or a cash deposit is required.
(h)
No utility shall require any security other than either a cash deposit to secure payment for utility
services or a third-party guarantee of payment in lieu of a cash deposit. In no event shall the
furnishing of utility services or extension of utility facilities, or any indebtedness in connection
therewith, result in a lien, mortgage, or other security interest in any real or personal property of
the customer unless such indebtedness has been reduced to a judgment. Should the guarantor
terminate service or terminate the third party guarantee before the customer has established a
satisfactory payment record for 12 consecutive months, the utility, applying the criteria contained
in its tariff, may require a cash deposit or a new third party guarantor.

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ness has been reduced to a judgment. Should the guarantor
terminate service or terminate the third party guarantee before the customer has established a
satisfactory payment record for 12 consecutive months, the utility, applying the criteria contained
in its tariff, may require a cash deposit or a new third party guarantor.

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(i)
A cash deposit shall not exceed an amount equal to an estimated 90 days' bill of the customer,
except in the case of a customer whose bills are payable in advance of service, in which case the
cash deposit shall not exceed an estimated 60 days' bill of the customer. The cash deposit may
be in addition to any advance, contribution, or guarantee in connection with construction of lines
or facilities, as provided in the extension policy in the utility's tariff.
(j)
A utility receiving cash deposits shall maintain records showing:
(I)
the name of each customer making a cash deposit;
(II)
the amount and date of the cash deposit;
(III)
each transaction, such as the payment of interest or interest credited, concerning the
cash deposit;
(IV)
each premise where the customer receives service from the utility while the cash deposit
is retained by the utility; and
(V)
if the cash deposit was returned to the customer, the date on which the cash deposit was
returned to the customer.
(k)
A utility shall state in its tariff its customer deposit policy for establishing or maintaining service.
The tariff shall state the circumstances under which a cash deposit will be required and the
circumstances under which it will be returned.
(l)
Each utility shall issue a receipt to every customer from whom a cash deposit is received. No
utility shall refuse to return a cash deposit or any balance to which a customer may be entitled
solely on the basis that the customer is unable to produce a receipt.
tariff shall state the circumstances under which a cash deposit will be required and the
circumstances under which it

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## Nearby sections

- [4 CCR 723-1 RULES OF PRACTICE AND PROCEDURE](https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_1.md)
- [4 CCR 723-2 RULES REGULATING TELECOMMUNICATIONS SERVICES AND PROVIDERS OF TELECOMMUNICATIONS SERVICES](https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_2.md)
- [4 CCR 723-3 RULES REGULATING ELECTRIC UTILITIES](https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_3.md)
- [4 CCR 723-4 RULES REGULATING GAS UTILITIES](https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_4.md)
- [4 CCR 723-5 RULES REGULATING WATER, AND COMBINED WATER AND SEWER UTILITIES](https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_5.md)
- [4 CCR 723-10 AUTHORITY OF THE PUC TO FLEXIBLY REGULATE GAS, ELECTRIC, OR STEAM UTILITIES [Repealed eff. 04/01/2006]](https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_10.md)
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- [4 CCR 723-12 PROVISION OF CERTAIN PRODUCTS AND SERVICES WITHIN OPEN NETWORK ARCHITECTURE [Repealed eff. 04/01/2006]](https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_12.md)
- [4 CCR 723-13 RULES FOR ADMINISTERING THE LOW-INCOME TELEPHONE ASSISTANCE FUND [Repealed eff. 04/01/2006]](https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_13.md)
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- [4 CCR 723-15 RULES SAFETY FOR MOTOR VEHICLE CARRIERS AND ESTABLISHING CIVIL PENALTIES [Repealed eff. 04/01/2006]](https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_15.md)
- [4 CCR 723-16 CLAIM OF CONFIDENTIALITY OF INFO SUBMITTED TO THE COLO PUBLIC UTILITIES COMM [Repealed eff. 04/01/2006]](https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_16.md)
- [4 CCR 723-17 GAS TRANSPORTATION RULES [Repealed eff. 04/01/2006]](https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_17.md)
- [4 CCR 723-18 OPERATOR SERVICES FOR TELECOMMUNICATIONS PROVIDERS AND TELEPHONE UTILITIES [Repealed eff. 04/01/2006]](https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_18.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_CO_CCR_4_CCR_723_5. Check the current official text before relying on it. Not legal advice.