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 aging 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

California
Infrastructure Investment Surcharge Mechanism (IISM) — pilot basis for California American Water's Los Angeles District

Connecticut
Water Infrastructure and Conservation Adjustment (WICA)

Delaware
Distribution System Improvement Charge (DSIC)

Illinois
Qualifying Infrastructure Plant Surcharge (QIPS)

Indiana
Distribution System Improvement Charge (DSIC)

Missouri
System Infrastructure Charge (SIC)

New Hampshire
Water Infrastructure and Conservation Adjustment (WICA) — pilot basis for Aquarion Water

New Jersey
Distribution System Improvement Charge (DSIC)

New York
Distribution System Improvement Charge (DSIC)

Ohio
System Infrastructure Charge (SIC)

Pennsylvania
Distribution System Improvement Charge (DSIC)