.05 Existence of Availability or Demand Charges.

A. In a statement filed with the application, the applicant shall disclose whether or not purchasers of unimproved land, located in the proposed service area of the applicant, will be subject to an availability or a similar type of demand charge to be collected by the land developer-seller, by the applicant, or by any other party or organization.

B. If an availability or a similar type of demand charge is proposed by the applicant or any other party, the application shall contain the justification and derivation of this charge, together with documents showing compliance with the provisions and requirements of E and F, of this regulation.

C. Any proposed availability or demand charge is subject to acceptance and approval by the Commission.

D. If approved, the tariffs and rate schedules of the applicant shall contain the information set forth in §F, of this regulation.

E. Any contract of sale between the buyer of unimproved or improved land in the service area of the applicant, or authorized water company, sewage disposal company, or both, and the seller shall contain a provision stating that the buyer will be required to make payment of an availability or similar type of demand charge to the seller, to the authorized water company, sewage disposal company, or both, or to another authorized third party or organization, as appropriate.

F. If the seller of the unimproved or improved land or any third party or organization is to collect the availability charge, the contract of sale shall contain a further provision stating:

(1) The dollar amount and billing period of the charge;

(2) That this charge will expire when the landowner (buyer) improves his property, connects to the utility system, and receives water service, sewage disposal service, or both, from the authorized water or sewage disposal company at approved rates;

(3) That this charge is either to defray the utility's operating expenses or to defray construction costs of the plant or system, or both, at specified percentages; and

(4) That money collected from the charges will be remitted no less frequently than every 3 months to the authorized public service company, which shall account for that money in accordance with the Uniform System of Accounts.