Distribution System Investment Charge (DSIC) for Water and Wastewater Systems

DSIC was first implemented in Pennsylvania in approximately 1996 and allows for rate increases, outside of a general rate proceeding, for non revenue producing investments to replace aging infrastructure. In Pennsylvania the program has operated for almost 10 years with no known customer complaints. Benefits of the program include more efficient and timely investment of capital, significant progress in replacing aging infrastructure, enhanced service quality, reduction of water lost through leaks, avoidance of rate shock, and others. As water supplies become more stressed in the future due to many factors, reducing water lost through ageing infrastructure will become more important. Such programs typically include protections for customers such as limits on the amount of incremental revenues that can be collected, exclusion of capital projects that are revenue producing, and true up mechanisms.

States with DSIC