Section 656.40  Qualifying Infrastructure Plant

a)         To be classified as QIP, the plant additions must meet the following criteria:

1)         The plant additions must be replacements of existing plant items from the accounts listed in subsections (b) and (c);

2)         Such replacements must be non-revenue producing;

3)         Such replacements are installed to replace facilities that are worn out or deteriorated or to replace facilities that are obsolete and at the end of their useful service lives due to a change in law or a change in the regulations of a governmental agency;

4)         Such replacements are installed after the conclusion of the test year in the utility's latest rate case; and

5)         Such replacements were not included in the calculation of the rate base in the utility's last rate case.

b)         For water utilities, the plant additions shall include items from the following accounts, pursuant to 83 Ill. Adm. Code 605:

1)         Account 331, Transmission and Distribution Mains;

2)         Account 333, Services;

3)         Account 334, Meters and Meter Installations; and

4)         Account 335, Hydrants.

c)         For sewer utilities, the plant additions shall include items from the following accounts, pursuant to 83 Ill. Adm. Code 650:

1)         Account 360, Collecting Sewers - Force;

2)         Account 361, Collecting Sewers - Gravity (including costs associated with manholes); and

3)         Account 363, Services to Customers.

d)         In addition to replacements, the following items may be classified as  QIP: main extensions recorded in Account 331 for water utilities that are constructed to eliminate dead ends and the unreimbursed costs recorded in the appropriate accounts listed in subsections (b) and (c) that are associated with relocations of mains, services, hydrants, and sewers occasioned by street or highway construction.

e)         QIP shall include only plant additions installed on or after January 1 of the year in which the utility files its initial QIP surcharge rider in accordance with Sections 656.70 and 656.90 of this Part.