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Home My WebLink About20160502Application.pdfI E CE IV ED NOLAN GNEITING OWNER 2%:ir -2 PM 3:18 MORNING VIEW WATER COMPANY 3996 E.200 N. P.O.BOX 598 RIGBY,ID 83442 208-745-0029 208-745-004 1 FAX morn ingviewwatcrIm ail.corn BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER Of THE APPLICATION OF )CASE NO.Assigned by the MORNING VIEW WATER COMPANY fOR AUTHORITY TO )Commission Secretary INCREASE ITS RATES AND CHARGES FOR ) WATER SERVICE IN THE STATE OF IDAHO.)t N V —vii—)—O COMES NOW full name of the water Company,hereinafter referred to as ‘Applicant”or “Morning View Water”and holder of Certificate of Public Convenience and Necessity No.000 from the Idaho Public Utilities Commission hereby applies to the Commission for authorization to increase its rates and charges for water service. Applicant is a Corporation,duly qualified to do business in Idaho.The Applicant provides water service to 107 residential customers in or about the city of Rigby in Jefferson County,Idaho. Application is made to the Commission to authorize an increase in water rates as follows: Increase flat rate residential rates to be determined in conjuction and cooperation between the Public Utilties Commssion and Morning View Water Company.TO t c-lcr c’ Applicant requests that such changes in rates and charges be effective on June 1,2016 Applicant hereby certifies that it will notify its customers of the Application by mail on May 3, 2016.A similar notice will be published in the Jefferson Star on May 6,2016. Based upon the test year ended December 31,2015,Applicant believes its proposed increase in rates and charges is justified due to a major addition to the company infrastructure including a new wellhouse,new mains,and a note due to pay for said addition.Also,rates have not been adjusted for several years.and adjustments are needed to conside inflation. Included with this Application are an original and seven copies of the Application and Exhibit Nos.I through 9 as follows: Exhibit No.1,Schedule A,Plant in Service Exhibit No.1.Schedule B,Accumulated Depreciation Exhibit No.1,Schedule C,Rate Base Summary Exhibit No. 2, Schedule A, Revenues Exhibit No. 2, Schedule B, Expenses Exhibit No. 2, Schedule C, Income Statement ExhibitNo. 3, Cost of Capital and Rate of Return Exhibit No. 4, Revenue Requirement Exhibit No. 5, To be submitted at a future date Exhibit No. 6, To be submitted at a future date Exhibit No. 7, To be submitted at a future date Exhibit No. 8, To be submiued at a future date Exhibit No. 9, To be submitted at a future date Exhibit No. 10, To be submiued at a future date Also included are two copies of the following workpapers and supplemental schedules: A monthly schedule of water use for each customer on the system. A monthly schedule of water pumped from each of the Company's wells to be submitted at a future date A schedule showing each of the Company's wells, the size of the motor, pumping capacity in Gallons per Minute (GPM), depth of the well and depth to water aquifer, to be submitted at a future date. A schedule showing each of the Company's reservoirs showing the type of construction, means of system pressurization and capacity, to be submitted at a future date. Workpapers explaining and showing the development of known changes to the test year financial data shown on Exhibit Nos. I through 4. Workpapers showing that the proposed rates will produce the revenue requirement shown on Exhibit No. 4, Column (D), line 3. Applicant further states that it stands ready for immediate consideration of this Application. Morning View Water Company respectfully requests favorable consideration of this Application. Please direct any questions or correspondence related to the Application to the Applicant as indicated on page l. Dated this 2nd day of May,2016 Respectful ly subm itted, Morning View Water Company RATE BASE (SCHEDULE "A" ACCOUNT 101 PLANT tN SERVTCE ) Company Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: Test Year ended: 2015 Plant in Service (Annual Report, pg. 5) ACCT # DESCRIPTION (A) (B) (c)Known Pro FormaActual Chanqes' (A + 911 301 Organization2 302 Franchises and Consents3 303 Land & Land Rights4 304 Structures and lmprovements5 305 Collecting & lmpounding Reservoirs6 306 Lake, River & Other lntakes7 307 Wells8 308 lnfiltration Galleries & Tunnels9 309 Supply Mains10 310 Power Generation Equipment11 311 Power Pumping Equipment12 320 Purification Systems13 330 Distribution Reservoirs & Standpipes14 331 Trans. & Distrib. Mains & Accessories15 333 Services16 334 Meters and Meter lnstallations17 335 Hydrants18 336 Backflow Prevention Devices19 339 Other Plant & Misc. Equipment20 340 Office Furniture and Equipment21 341 Transportation Equipment22 342 Stores Equipment23 343 Tools, Shop and Garage Equipment24 344 Laboratory Equipment25 345 Power Operated Equipment26 346 Communications Equipment27 347 Miscellaneous Equipment28 348 Other Tangible Property 29 TOTAL PLANT IN SERVICE 581,502 45,000 (Add lines 1 -28) *Attach detailed explanations and calculations showing the development of each "Known Change" to the test year data. 630,322 0 630,322 Exhibit No. 1 Schedule A 1,800 2,020 581,502 45,000 1,800 2,020 RATE BASE (SCHEDULE ''8" ACCUMULATED DEPRECIATION) Somoanv Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: fest Year ended: 2015 Accumulated Depreciation (Annual Report, pg. 6)rA)(Bl (c) Known Pro Forma ACCT #DESCRIPTION Actual Chanoes*(A+B) 1 304 Structures and lmorovements 1250 17717 18967 2 305 Collectinq & lmpoundinq Reservoirs 3 306 Lake, River & Other lntakes 4 307 Wells 5 308 lnfiltration Galleries & Tunnels 6 309 Suoolv Mains 7 310 Power Generation Equipment 8 311 Power Pumpinq Equipment 3000 3000 9 320 Purification Svstems 10 330 Distribution Reservoirs & Standpipes 11 331 Trans. & Distrib. Mains & Accessories 12 333 Services 13 334 Meters and Meter lnstallations 14 335 Hvdrants 90 90 15 336 Backflow Prevention Devices 16 339 Other Plant & Misc. Equipment 17 340 Office Furniture and Equipment 18 341 Transoortation Eouioment 19 342 Stores Equipment I 20 343 Tools, Shop and Garage Equipment 21 344 Laboratory Equipment 22 345 Power Operated Equipment 23 346 Communications Eouioment 24 347 Miscellaneous Equioment 25 348 Other Tanoible Prooertv 26 TOTALS (Add Lines 1 - 25)4340 't7717 22057 'Attach detailed explanations and calculations showinq the development of each "Known Chanqe" to the test year data. Exhibit No. 1 Schedule B RATE BASE (SCHEDULE ''C" SUMMARY) Companv Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: Test Year ended: 2015 (A)(B)(c) Test Year Known Pro Forma Actual Chanoes"14+B) 1 Total Plant in Service (Ex 1, Sch A, line 29)630,322.00 0.00 630,322.0C 2 Accumulated Depreciation (Ex 1, Sch B, line 26)4,340.00 17,717.00 22,057.0C 3 Net Plant in Service (Line 1 less line 2)625,982.00 -17,717.00 608,265.0C 4 Add Utilitv Plant Acquisition Adiustment"' (Annual Report paqe 7, line 5) 5 Add Materials & Suoolies lnventories (Annual Report paqe 7. line 22) 6 Less Accum Amortization Util Plant Aco Adi*' (Annual Report page 7, line 12) 7 Less Customer Advances for Construction (Annual Report page 8, line22) I Less Contributions in Aid of Construction (Annual Reoort paoe 8. line 27) 9 Add Workinq Capital (1/8 Operating Expenses) (Exhibit No. 2, Sch B,line 22181 47,867.95 23,519.60 71,387.55 10 Add Deferred Charses (lf any, attach detail) (AnnualReport paqe 7, lines 29 & 30) 11 TOTAL RATE BASE 673,849.95 5,802.60 679,652.55 * Attach detailed explanations and calculations showing the development of each "Known Change" to the test Vear data. *" Onlv if Commission aooroved. Exhibit No. 1 Schedule C OPERATING RESULTS (SCHEDULE''A' REVENUES) Comoanv Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: Test Year ended: 2015 See Annual Reoort oaoe 3) (A)(B)(c) Test Year Known Pro Forma Actual Chanoes*(A+B) Water Revenues: 1 Unmetered 52218.51 52218.51 2 Metered-Residential 3 Metered-Commercial & I ndustrial 4 Fire Protection Revenue 5 Other Water Sales Revenue 137 137 6 lrriqation Sales Revenue 7 Sales for Resale 8 TotalWater Revenue (Add lines 1 - 7)52355.51 52355.51 9 DEQ Fees billed separately to customers 10 Hook-up or Connection Fees collected 11 Commission-aooroved Surcharqes collected 12 TOTAL REVENUE (Add lines I - 11)52355.51 52355.51 * Attach detailed exolanations and calculations showinq the development of each "Known Chanqe" to the test vear data. Exhibit No. 2 Schedule A OPERATING RESULTS (SCHEDULE ''B'' EXPENSES) Comoanv Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: Test Year ended: 201 5 (See Annual Reoort paoe 3) (A)(B)(c) Test Year Known Pro Forma Actual Chanoest (A+B) 1 Labor-Operation & Maintenance 2 Labor-Customer Accou nts 3 Labor-Administrative & General 15.720.00 1,080.00 16,800.0c 4 Salaries-Officers & Directors 6,656.04 5,583.96 12,240.0C 5 Emolovee Pensions & Benefits 6 Purchased Water 7 Purchased Power & Fuel for Power 15,582.31 6,000.00 21,582.31 I Chemicals 9 Materials & Supplies-Operation & Maintenance 3,062.47 1,037.53 4,100.0c 10 Materials & Supplies-Admin & General 1,772.05 -172.05 1,600.0c 11 Contract Services-Professional 376.00 1,514.00 1,890.0C 12 Contract Services-Water Testinq 920.00 80.00 1,000.0c 13 Rentals-Prooertv & Equipment 14 Transoortation Exoense 15 lnsurance 126.00 0.00 126.0C 16 Advertising 17 Rate Case Expense (Amortization) 18 Requlatory Comm. Exp. (Other Except Taxes) 19 Bad Debt Expense 2A Miscellaneous Expenses 3,653.08 8,396.16 12,049.24 21 TOTAL OPEMTING EXPENSES 47,867.95 23.519.60 71.387 .55 * Attach detailed explanations and calculations showino the develooment of each "Known Chanoe" to the test year data. Exhibit No. 2 Schedule B OPERATING RESULTS (SCHEDULE "C'' INCOME STATEMENT) Comoanv Name: MORNTNG VIEW WATER COMPANY ldaho PUC Case Number: Test Year ended: 2015 (A)(B)(c) Test Year Known Pro Forma Actual Chanoes'(A+B) 1 Revenue (From Ex.2, SchA)52,355.51 52,355.s,| 2 f,perating Expenses (From page 3, line 33)47,867.95 23,519.60 71,387.5€ 3 )epreciation Expense 4,340.00 17,7'.t7.0C 22,057.ff 4 \mortization, Utility Plant Acauisition Adi. 5 \mortization Exp.-Other 6 Requlalory Fees (PUC)630.40 127.11 757.51 7 )rooertv Taxes 510.0c 510.0( 8 ,ayroll Taxes 2,634.43 2,962.0C 5,596.4: 9A f,therTaxes (ist) DEQ Fees 530.0c 530.0t 9B 9C 9D 1 ;ederal lncome Taxes 11 State lncome Taxes 1 provision for Deferred lncome Tax-Federal 1 Provision for Deferred lncome Tax-State 14 Provision for Deferred Utility lncome Tax Credits 1 lnvestment Tax Credits-Utility 1€Total Expenses from Operations before interest (Add lines 2 - 15)55,472.78 45,365.71 100,838.4t 1 lncome from Utility Plant Leases to Others 1 Sains (Losses) from Disoosition of Utilitv Plant 1 Net Operating lncome (Add lines 1, 17 &18less line 16)-3.117.27 -45,365.71 48,482.9t 2C Revenues, Merchandizinq, Jobbing & Contracl Work 21 Exoenses. Merchandizino. Jobbino & Contracts 22 lnterest & Dividend lncome 0.09 0.00 0.0! 23 Allowance for funds used during construction 24 Miscellaneous Non-Utility lncome 2l Miscellaneous Non-Utility Expense 2e Cther Taxes. Non-UtiliW Operations 27 lncome Taxes, Non-Utility Operations 2E Net Non-Utility lncome (Add lines 20, 22,23, &24 0.09 0.00 0.0s less lines 21 , 25, 26 & 27', 2E Gross lncome (Add lines 19 & 28)-3,117.18 -45,365.71 .48,482.8! 3C lnterest Exp. On Lono-Term Debt 31 Cther lnterest Charoes 32 NET INCOME (Line 29 less lines 30 & 31)-3,1 't 7. 18 -45,365.7'l -48,482.8S ' Attach detailed exolanations and calculations showing the development of each "Known Change" lo the test vear dala. Exhibit No.2 Schedule C COST OF CAPITAL AND RATE OF RETURN Comoanv Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: Test Year ended: 201 5 (A)(B)(c)(D) Amount % of Total Cost Weighted Outstanding Outstandinq of Cost (Column A/Capital (Column B X Total Line 6)Column C) 1 Common Eouitv (Proorietor Capital Paid ln)34910.96 2 Retained Earninos 3 Total Common Eouitv (Proorietor Caoital) Line 1 + Line 2 34910.96 60/o 0o/o 4 Short-Term Debt 19151.69 3o/o 4o/o 0.13o/c 5 Lonq-Term Debt 550653.69 91%8o/o 7.280/c b TotalCapital 604716.34 7 Weighted Cost of Capital (Rate of Return Required)7.41o/. (Line 3 + 5) Exhibit No. 3 REVENUE REQUIREMENT Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: Test Year ended: 2015 (A)(B)(c) Test Year Known Pro Forma Actual Chanqes (A+B) 1 Rate Base (Ex. 't, Sch C, line 11 673,849.95 8,220.29 682,070.24 2 Required Rate of Return (Ex. 3, line 7)7.4104 7.41% 3 lncome Reouired (Line 1 x Line 2)49,942.18 50,551.42 4 lncome Realized (Ex.2, Sch C, line 29)-3,117.18 47.783.40 -50,900.58 5 lncome Deficiency (Line 3 less Line 4)53,059.36 101,452.00 Exhibit No. 4 Exhibit #5 - NOT COMPLETE. NO SAMPLE EXHIBIT 5 INCLUDED lN EXHIBIT PACKAGE Company Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: Test Year ended: 2015 Exhibit #6 - NOT COMPLETE. NO SAMPLE EXHIBIT 6 INCLUDED lN EXHIBIT PACKAGE Company Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: Test Year ended: 2015 Exhibit #7 - NOT COMPLETE. NO SAMPLE EXHIBIT 7 INCLUDED lN EXHIBIT PACKAGE Company Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: Test Year ended: 2015 Exhibit #8 - NOT COMPLETE. NO SAMPLE EXHIBIT 8 INCLUDED lN EXHIBIT PACKAGE Company Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: Test Year ended: 2015 Exhibit #9 - NOT COMPLETE, NO SAMPLE EXHIBIT I INCLUDED lN EXHIBIT PACKAGE Company Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: Test Year ended: 2015 Exhibit #10 - NOT COMPLETE. NO SAMPLE EXHIBIT 10 INCLUDED lN EXHIBIT PACKAGE Company Name: MORNING VIEW WATER COMPANY ldaho PUC Case Number: TestYear ended: 2015 Exhibit f1- schedule A Explanations and Calculations Data in column "A" comes from the Current Assets table of the Morning View Water Company Final Facility Plan. lt also comes from the Morning View Water Project list of expenses as of December 7,20L5 (Attached). Total cost of the entire project was placed into the "structures and lmprovements" column, as a detailed breakdown of assets and equipment has not been defined and made available. Exhibit #1- Schedule B Explanations and Calculations Data in column "8" comes from the addition of the new well project of 531,501.63 depreciated over a 30 year period. Exhibit #1- schedule c Explanations and Calculations All data in this schedule comes from other schedules. Exhibit #2 - Schedule A Explanations and Calculations No known changes. Exhibit #2 - schedule B Explanations and Calculations Line 3 represents S16,800 salary for bookkeeper who also performs meter readings, and performs shutoffs Line 4 represents owner salary of 512,240 Line 7 is the total power cost for the system using a sample from April 2015 to March 2014 Line 9 represents increase in materials and supplies due to the addition of a new wellhouse. Line 10 shows a slight decrease in admin and generalsupplies. Line 11 includes professional services from a backup engineer, and alarms on the wells. Line 12 show slight increase in water testing. Line 20 indicate misc. expenses such a bank fees, computer and software expense, office rent, m ileage, license requirements, legal fees, and continuing education. Exhibit #2 - Schedule C Explanations and Calculations Only notable known changes are payroll expenses correspondingto changed salaries. Exhibits 3 & 4 Explanations and Calculations Data in this schedule comes from other schedules. Exhibits 5 - 10 Not completed. No sample exhibits were included in the exhibit packages.