Section 89-J. Notice and hearing; order fixing price of water or requiring improvement

Before proceeding under a complaint presented as  provided
  in  section  eighty-nine-i,  the  commission  shall cause notice of such
  complaint, and the purpose thereof, to be  served  upon  the  person  or
  corporation  affected  thereby. Such person or corporation shall have an
  opportunity to be heard in respect to the matters  complained  of  at  a
  time  and  place to be specified in such notice. An investigation may be
  instituted by the commission of its own motion as to any matter of which
  complaint may be made, as provided  in  section  eighty-nine-i  of  this
  chapter,  or  to  enable  it  to  ascertain  the  facts requisite to the
  exercise of any power conferred upon it. After a hearing and after  such
  an  investigation  as  shall  have  been  made  by the commission or its
  officers, agents, examiners or inspectors, the commission may, by order,
  fix just and reasonable prices, rates or charges for water to be charged
  by  such  corporation  or  person,  for  the  service  to  be  furnished
  notwithstanding  that  a  higher  or  lower  price  has been theretofore
  prescribed by general or special  statute,  contract,  grant,  franchise
  condition, consent or other agreement, and may order such improvement in
  the  supply or distribution of water, or in the methods employed by such
  person or corporation, as will in its judgment  be  adequate,  just  and
  reasonable.  Any  such  change  in  price  shall  be  upon  such  terms,
  conditions or safeguards as the commission may prescribe. If it shall be
  made to appear to the satisfaction of the  commission  that  the  public
  interest  requires  a  change  in the price of water charged by any such
  person or corporation, or that such change is necessary for the  purpose
  of  providing adequate and efficient service, or for the preservation of
  the property, the commission, upon such terms, conditions or  safeguards
  as  it  deems  proper, may authorize an immediate, reasonable, temporary
  increase or decrease in such price pending a final determination of  the
  price to be thereafter charged by such person or corporation. The terms,
  conditions  or  safeguards  prescribed  may  include  provisions for the
  purposes  for  which  the  additional  revenue  derived  from  any  such
  temporary  increase may be expended and for the impounding thereof until
  the same shall be applied to the purposes so specified.  The price fixed
  by the commission under  this  section  or  under  subdivision  four  of
  section  eighty-nine-c  shall be the maximum price to be charged by such
  person or corporation for water for the service to be  furnished  within
  the  territory  and  for  a  period to be fixed by the commission in the
  order, not exceeding three years except in the case of a sliding  scale,
  and  thereafter  until the commission shall, upon its own motion or upon
  the complaint of any corporation, person or municipality interested, fix
  a higher or lower maximum price of water to be thereafter charged.    In
  determining  the  price  to  be  charged  for  water  the commission may
  consider all facts which in its judgment have any bearing upon a  proper
  determination  of  the  question although not set forth in the complaint
  and not within the allegations contained therein, with due regard  among
  other  things  to  a  reasonable  average  return  upon capital actually
  expended and to the necessity of making reservations out of  income  for
  surplus  and  contingencies. At any hearing involving a rate, the burden
  of proof to show that the change in rate or price  if  proposed  by  the
  person  or corporation operating such utility, or that the existing rate
  or price, if on motion of the commission or in a  complaint  filed  with
  the  commission  it is proposed to reduce the rate or price, is just and
  reasonable shall be  upon  the  person  or  corporation  operating  such
  utility; and the commission may give to the hearing and decision of such
  questions  preference  over  all  other  questions pending before it and
  decide the same as speedily as possible.