We are pleased to announce that the Public Service Commission approved this week a requirement for water utilities in Delaware (Order # 9124) to notify developers and or home builders if there might be offsite costs to the builder/developer to run water service to their new project.
These costs, titled Contributions in Aid of Construction (CIAC) Category 1B, represent the costs (generally, offsite costs directly assignable to a project to run from the project to the utility main) to provide water. The water utility must also provide an estimate of costs, although these costs may change over time.
We have been involved with this matter since early this year, including appearing and testifying at the public workshop. Kudos to our member Kevin Kelly and his firm Leon N Weiner & Associates for their invaluable help on this matter. They were involved with a project that initiated the public workshop, and in fact besides attending meetings and testifying, Kevin prepared proposed language for the final order which was approved by the PSC this past week.
Prior to this new PSC order, there were no regulations requiring prior notification of offsite costs, which in Kevin’s instance amounted to over $400 thousand dollars.
Developers, builders and their engineering consultants are encouraged to review Order 9124 for complete details. We also strongly encourage that you establish early and regular communications with your water utility company especially if the project is delayed. As we noted, the offsite Category 1B costs can change over time.
Download a copy of the order below.