Ch. 63: Major Construction Projects for Water Companies

SUMMARY: This regulation requires water utilities to inform the Commission of construction projects which exceed the lesser of 5% of the utility's fixed capital investment, or $1,000,000. 1. Definitions A. Major construction projects - Any new water system or any addition or alteration of an existing water system which is estimated to cost in excess of 5% of the utility's fixed capital investment or $1,000,000; whichever is smaller. 2. Reporting Required No municipality, water district or water company providing or proposing to provide public water service shall commence a major construction project without submitting a written report to the Commission at least 30 days before bids for the project are requested or 45 days prior to the start of construction in the event bids are not required. 3. Report Content A. Each report shall include the following information: 1. a description of the project; 2. the need for the project; 3. the purpose of the project; 4. construction plans and specifications along with any data providing the basis for the engineering design; 5. estimated costs and evidence that the most economical methods have been chosen; 6. proposed method(s) of financing to include source of funds, interest rates and proposed terms of borrowing; 7. such other information as the Commission may deem necessary.