COSTS PERMITTED UNDER THIS SUBPARAGRAPH MAY BE RECOVERED
FOR A PERIOD NOT TO EXCEED 10 YEARS FROM THE DATE THE
COST IS INCURRED. For the purpose of calculating the
return of and on a public utility's prudently incurred
cost for the replacement of a water service line and for
the replacement of a wastewater lateral that is recovered
in a public utility's base rates or distribution system
improvement charge, the commission shall employ the
equity return rate for water and wastewater public
utilities calculations set forth in section 1357(b)(2)
and (3) (relating to computation of charge).
(IV) THE COMMISSION MAY ALLOCATE THE COST ASSOCIATED
WITH THE REPLACEMENT OF A CUSTOMER-OWNED LEAD WATER
SERVICE LINE or customer-owned damaged wastewater lateral
AMONG EACH CUSTOMER, CLASSES OF CUSTOMERS AND TYPES OF
SERVICE.
(V) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO
THE CONTRARY, A PUBLIC UTILITY PROVIDING WATER or
wastewater SERVICE MUST OBTAIN PRIOR APPROVAL FROM THE
COMMISSION FOR THE REPLACEMENT OF A CUSTOMER-OWNED LEAD
WATER SERVICE LINE or customer-owned damaged wastewater
lateral BY FILING A NEW TARIFF OR SUPPLEMENT TO EXISTING
TARIFFS UNDER SECTION 1308 (RELATING TO VOLUNTARY CHANGES
IN RATES).
(VI) A NEW TARIFF OR SUPPLEMENT TO AN EXISTING
TARIFF APPROVED BY THE COMMISSION UNDER SUBPARAGRAPH (V)
SHALL INCLUDE A CAP ON THE MAXIMUM NUMBER OF CUSTOMER-
OWNED LEAD WATER SERVICE LINES or customer-owned damaged
wastewater laterals THAT CAN BE REPLACED ANNUALLY.
( VII) THE COMMISSION SHALL, BY REGULATION OR ORDER,
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