20181115Cary Direct.pdf

Michael C. Creamer (ISB No. 4030)
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: (208) 388-1 300
mcc@ givenspurslev. com
f-i-.r:-trIl.rlIr--+Elt'-'L)
:1 in.el
Attorneys for SUEZ Water Idaho Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT
APPLICATION OF EAGLE WATER
COMPANY, INC. AND SUEZ WATER
IDAHO INC. FOR APPROVAL OF SALE
AND ACQUISITION OF EAGLE WATER
COMPANY, INC. ASSETS BY SUEZ
WATER IDAHO INC. AND AMENDMENT
OF CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY NO.
143, AND APPROVAL OF RATES AND
CHARGES
Case Nos. SUZ-W-I8-02
EAG W-l8-01
DIRECT TESTIMONY OF JARMILA CARY
ON BEHALF OF SUEZ WATER IDAHO INC.
NOVEMBER 2OI8
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Please state your name and business address.
My name is Jarmila Cary. My business address is 8248 West Victory Road,
Boise, Idaho 83709.
By whom are you employed, and in what capacity?
I am the Director of Finance for SUEZ Water Idaho Inc. ("SUEZ" or
"Company").
Please summarize your professional experience and educational background.
I was granted a Bachelor of Science in Business, with a major in Accounting,
from the University of Idaho in December 1996. I have been employed by SUEZ
since June 1997 as Senior Accountant and later as Manager of Accounting except
for a brief leave of absence from June 2008 through August 2009. I became
Director of Finance in September 2015.
Please describe your duties as Director of Finance.
I have oversight over the Company's financial activities including planning,
variance analysis, operational reporting, payroll, accounts payable, and
development and monitoring of business metrics. I participate in rate filings,
monitor capital expenditure investment, and define and implement changes in
management initiatives. I am also the key contact person within SUEZ's Idaho
Division for centralized functions such as Accounting, Audit, Tax, Treasury and
Procurement. In March 2078, my role expanded to include oversight of the
Customer Service Department. Additionally, I provided testimony before the
Idaho Public Utilities Commission in the Company's 2011 and 2074 general rate
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a. What is the scope of your testimony?
A. My testimony describes my analysis of the planned capital investments and
operating cost projections for the Eagle Water Company ("Eagle Water") water
system, a phased-in tariff increase for Eagle Water customers if the proposed
asset acquisition is approved, and analysis supporting the acquisition purchase
price.
a. Have you prepared an Exhibit that shows your analysis conclusions?
A. Yes. I am sponsoring Exhibit 1 consisting of Schedules 1 through 5. Schedule
la shows the projected three-year capital investment that would benefit Eagle
Water customers. This schedule also includes Eagle Water's projected operating
costs (including recommended maintenance) and the resulting revenue deficiency.
Schedule lb summarizes the projected impact to the average Eagle Water
residential and commercial customer as a result of the revenue deficiency
calculated in Schedule 1a. The resulting percentage increase is then applied to the
average calculated Eagle Water customer bill in Schedule 2, using the existing
Eagle Water tariff rate structure.
Schedule 2 is an analysis of rate impacts to Eagle Water customers of the
proposed three-year phase-in to SUEZ rates assuming the acquisition is approved.
The analysis uses an average bill calculation that approximates 2017 reported
revenues. Schedule 3 summarizes the proposed phased-in tariff rates. Schedule
4 shows the calculation of Eagle Water customers' winter vs. summer
consumption and Schedule 5 summarizes Eagle Water's 2017 year end average
bill and consumption per customer calculation.
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Please discuss your financial analysis supporting the purchase price.
As derived from the most recent Eagle Water annual report to the Commission,
Eagle Water's calculated level of rate base as of December 31 ,2017 was
($1,208,792). This represented the Eagle Water Plant In Service of $3,13 7,715,
less Accumulated Depreciation & Amortizationof $1,263,450, less $3,155,195
booked as Contributions in Aid of Construction ("CIAC"), plus a working capital
amount of $78,138 representing one-eighth of $625,102 Operating and
Maintenance expenses (includes $13,239 of regulatory commission fees).
The Company is aware from discussions with Commission Staff and its own
review of past Eagle Water filings with this Commission, that Eagle Water books
and records may not accurately reflect its current rate base and capitalized assets
due to prior accounting inconsistencies. The Company's assumption for purposes
of analysis discussed in my testimony is that the Eagle Water rate base would be
set to zero.
SUEZ is asking the Commission to recognize the full $10M purchase price plus
SUEZ's acquisition costs as an acquisition adjustment for rate making purposes.
This treatment will allow SUEZ to recover the full purchase price and transaction
and closing costs in rates. Furthefinore, this treatment will allow SUEZ to make
the capital improvements necessary to meet existing regulatory requirements.
The asset purchase agreement makes SUEZ's obligation to close the purchase
contingent upon, among other things, a favorable rate treatment of the purchase
price.
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The $10M purchase price represents an approximate investment per customer of
$2,380 based on a projected 4,200 Eagle Water customers at closing. In Case No.
UWI-W-15-01, SUEZ's rate base was approximately $173,322,068, which
represented an approximate investment per customer of $1,924 based on
approximately 90,072 active service agreements as of Nov. 2015. Additional
justification for the purchase price is based on an estimated capital cost
investment avoidance of $11.7M as described in Ms. Cooper's testimony.
Please discuss the anticipated acquisition closing costs and why they should be
included in recovery?
The Company is requesting that all of its acquisition costs through closing of the
purchase be capitalized and amortized as part of the requested acquisition
adjustment. These costs would include legal fees, costs for obtaining ALTA
surveys and extended coverage title insurance for the acquired real property
assets, preparation and prosecution of the Joint Application and SUEZ's share of
closing/escrow costs. The requested cost recovery includes legal costs incurred in
negotiation and documentation of the transaction, coordination and assistance to
SUEZ in performing due diligence, coordinating and directing survey work and
resolving title issues identified in preliminary title commitments for real
properties and easements that would be acquired by SUEZ. These legal costs and
costs for surveys and title insurance are customary and necessary components of
commercial real estate transactions to protect the buyer's interests and ensure the
properties are acquired free and clear ofany potential liens, and adverse
encumbrances or encroachments. The surveys and extended coverage policies
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serve to ensure the Company acquires clear title to the properties and easements
together with rights of ingress, egress and access to operate and maintain
underground assets and facilities. SUEZ's costs as of the date of filing the Joint
Application includes approximately $35,000 in legal fees, $50,000 for ALTA
surveys and $6,000 estimated for extended coverage title insurance for the
acquired real property assets. The Commission has previously allowed recovery
of such prudent acquisition costs in prior case filings.
Please discuss the projected capital investment that will directly benefit the
Eagle Water system customers.
Ms. Cooper's testimony includes the projected capital investment that SUEZ
believes will need to be made to the Eagle Water system over the next three years.
These investments would address disinfection needs, would provide for
Supervisory Control and Data Acquisition (SCADA), Meter & Service
replacements, pressure valve installations (PRV), and GIS mapping & hydraulic
modeling. SUEZ also believes certain water right issues should be addressed
along with construction of a storage tank to comply with IDEQ peak hour, fire
flow supply and redundancy requirements. Other proposed investments are for
pipeline replacements, safety and security and production roll-up work including
pump replacements, sampling stations and generators, etc. These capital
investment dollars total an estimated $13.4 million over the next three years with
$2,700,000 proposed in year one, $6,708,000 in year two and $3,950,000 in year
three. These investments are included in Exhibit 1, Schedule I a at line 43 at
column F.
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a. Please discuss the projected operating costs that SUEZ expects Eagle Water
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would incur as a result of the projected capital investment.
My financial analysis Exhibit 1 Schedule I a projects that with the $ 13.4M
proposed capital investment for system upgrades and associated recommended
maintenance that would directly benefit Eagle Water customers, Eagle Water's
operating costs would increase by $ 158,750 over its 2017 year-end figure. This
projected operating cost increase would include $60,000 in additional payroll
expense for Eagle Water to add a dedicated SCADA Operator and $30,000 to
provide enhanced employee benefits and other wage adjustments. SUEZ
estimates that Eagle Water would incur $2,000 in additional power expense for
SCADA monitoring equipment, chemical feed pumps, analyzers, RTU's and
pressure regulating valves.
Eagle Water currently does not disinfect its water. Although Eagle Water's
supply source is groundwater, chlorination treatment is a recommended practice
to make water safe for consumption, and is something that SUEZ would
implement for this system. Chlorination treatment of water delivered through the
Eagle Water system is estimated to increase Eagle Water's annual expense by
approximately $24,000 based on SUEZ's disinfection chemical cost of $26.50 per
MG (million gallons) of water produced with an estimated annual production of
895 million gallons based on Eagle Water's data.
Eagle Water cost of materials and supplies are estimated to increase by $2,250 for
chlorine detector CL-17 reagents and maintenance, $2,500 for air conditioning
maintenance, filters, building maintenance including painting, and $13,000 for
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recommended well cleaning maintenance. Based on SUEZ's own experience
with similar equipment and system operations requirements, Eagle Water
subcontractor costs are projected to increase by $5,000 for SCADA & GIS
support, licenses & maintenance fees, $15,000 for the five generators'
maintenance needs and recommended testing, and $5,000 for low maintenance
landscaping upkeep - gravel, weed control and pre-emergent applications and
backfl ow device testing.
Please discuss the projected operating costs and savings for the Eagle Water
system under SUEZ operations?
The anticipated maintenance costs described above would cover the current Eagle
Water system and the planned capital improvements over three years. These costs
are prudent and reasonable and would be the same regardless of system
ownership.
Eagle Water's 2077 annual Public Utilities Commission report shows annual
operating expenses totaling $611,863. Based on due diligence information
provided by Eagle Water and the Company's analysis, operating and maintenance
expenses are projected to decrease at a minimum by $54,603 under SUEZ
operation.
Eagle Water rents office space for its operations headquarters. SUEZ would serve
the Eagle Water system and customers through its existing company office
location at8248 West Victory Road, which would produce an operating cost
savings of $ 10,450 per year.
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SUEZ anticipates it would require a staff of three additional employees to operate
the Eagle Water system and serve the customers. This would include the addition
of an Operator, Meter Reader and a Customer Service Representative over and
above SUEZ's existing staffing level. SUEZ intends to evaluate qualified and
interested Eagle Water employees as candidates for these positions. Eagle Water
records show it has six individuals on payroll. Eliminating Eagle Water owner's
salary together with the aforementioned staffing changes would save an estimated
$44,153 per year in salaries and benefit costs.
Additional operational savings would be achieved by leveraging SUEZ's buying
power in reducing material & supply costs, utilizing existing SUEZ equipment
and employees to perform various general and administrative duties, customer
billing, maintenance activities, and field functions and eliminating certain outside
professional services such as accounting and legal fees, which would be
performed in-house by SUEZ. These cost savings are projected to offset
additional unforeseeable expenses SUEZ would likely incur after operating the
Eagle Water system.
Please discuss the cost per customer at current rates for Eagle Water and
SUEZ.
Eagle Water's 2017 year-end Commission annual report data for Residential and
Commercial revenue, shows a year-end customer count of 3,835 and water sold
quantity of 470,737,003 labeled as thousand gallons. Eagle Water also has
provided SUEZ with billing reports for 2017 that were used as the basis for the per
customer cost calculation rather than the annual report because I have determined
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the billing report consumption numbers and customer counts are more accurate
based on reported revenue. This data is summarizedin Exhibit l, Schedule 5. The
average Eagle Water Residential customer used 218ccf (hundred cubic feet of
water) for the 2017 year or approximately 163 thousand gallons (using a conversion
rate of 1cf or cubic foot : 7 .48 gallons), at an annual cost of $ I 52 per Eagle Water
customer. During 2017 Eagle Water Commercial customers averaged 642ccf or
approximately 480 thousand gallons of water usage at an annual cost of $478 per
customer.
For the same 2017 year-end time period, SUEZ Residential customers used an
average of 145ccf or approximately 108 thousand gallons at an annual cost of $402
per customer. SUEZ Commercial customers used an average of 722ccf dunng2}l7
or approximately 540 thousand gallons at a cost of $ 1,590 per customer for the year.
Depending on consumption level and time of year usage, Eagle Water's existing
rates and average bill are between one-half and one-third of SUEZ's existing
approved tariff rates and average residential and commercial customer bills.
While SUEZ's rates are currently higher than Eagle Water's, they allow the
Company to invest in infrastructure replacement needs, to operate the system
utilizing SCADA & GIS technology for monitoring and responding 24-hours a day,
to provide service enhancements such as a customer website portal, with a variety
of payment and billing options, conservation education and materials, and the
ability to perform recommended maintenance to ensure continued service
reliability. With SUEZ's acquisition of Eagle Water Company, these benefits
would extend to those customers as well.
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Based on the projected capital investment and Eagle Water operating costs,
what would Eagle Water's revenue requirement and the impact on Eagle
Water Customer tariff rates be assuming those investments were made and
costs were incurred by Eagle Water?
SUEZ believes that regardless of the proposed acquisition, the Eagle Water system
will require substantial new capital investment over the next three years and will
experience increased operating costs to address the issues discussed above and in
Ms. Cooper's testimony. Exhibit 1, Schedule 1a to my testimony details my
analysis of the anticipated financial impact over the same three years. This exhibit
shows the probable capital investments, normalized depreciation expense, and
increased operating costs Eagle Water would be expected to incur. The result for
Eagle Water is a projected revenue deficiency of $7,922,839 with all other factors
from 2017 remaining unchanged, including current Eagle Water rates. As
summarized in Exhibit 1, Schedule lb, the deficiency would support a256Yorate
increase for Eagle Water Company over its existing rates. Applying that increase
to a calculated average Eagle Water customer bill results in a projected average
monthlyincreaseof $31.56 forResidential customers, goingfroma$12.35 average
monthly bill at existing rates to a $43.91 monthly bill. The impact to Commercial
customers would be an estimated average monthly increase of $99.55, going from
a$38.g6averagemonthlybillatexistingratestoa$138.51 monthlybill. Theactual
impact of an increase in rates on a customer bill would be highly dependent on the
actual quantity of water used and the meter size.
Please explain how the average monthly bill was calculated?
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Certain assumptions were made to calculate an average Eagle Water Residential
and Commercial bill. The calculation is based on Eagle Water-provided data,
billing reports and annual reports filed with the Commission. This information was
used to estimate an average monthly consumption level that would also
approximate Eagle Water's 2017 Residential and Commercial revenues captured in
Exhibit 1 Schedule 2. The calculation uses Eagle Water's latest available April
2018 customer count of approximately 4,000 customers.
The average Residential monthly bill is calculated using a 314" meter fixed charge
and a30o/o winter I 70% summer consumption pattern based on Eagle Water's 2017
water sold data with an estimated 16 ccf (hundred cubic feet) of monthly water
usage.
The average Commercial customer monthly bill is calculated using a l-112" meter
fixed charge with a 15Yo winter I 85% summer consumption pattem based on Eagle
Water's 2077 water sold data with an estimated 75 ccf (hundred cubic feet) of
monthly water usage. These winter/summer consumption calculations are detailed
in Exhibit 1, Schedule 4.
What would the revenue requirement and the impact on Eagle Water
customer tariff rates be with the proposed SUEZ acquisition and rate phase
in?
As stated above, SUEZ projects that Eagle Water would experience an increased
revenue requirement of $1,922,839 requiring a related rate increase of
approximately 2560/o if it were to continue operating the system and make the
recommended system upgrades. If the Eagle Water assets are acquired, upgraded
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and operated by SUEZ consistent with the plans described in Ms. Cooper's
testimony, a transition to full SUEZ rates as proposed in the Application would
produce an estimated revenue requirement of $1,768,304 requiring an
approximately 235o/o increase over Eagle Water's existing rates as shown in Exhibit
1, Schedule 2 atrow 72, columnZ.
With a three-year rate phase-in and using the same average customer bill
determinants as above, SUEZ projects that Eagle Water Residential customers
would see an approximate monthly increase of $6.44 in their billings in year one,
in which their rate would be stepped up to 50% of SUEZ's existing rates. In year
one, the average Eagle Water Residential customer would see their bill increase
from a monthly cost of $12.35 to $18.79. In year two, they would see an
approximate monthly increase of $9.40 for an average monthly bill of $28.19 based
on 75o/o of SUEZ existing rates. In year three, they would see an approximate
monthly increase of $9.40 for an average monthly bill of $37.59 based on 100% of
SUEZ existing rates.
Eagle Water Commercial customers would realize an approximate monthly
increase of $39.56 in year one, going from Eagle Water's existing rates and an
average monthly bill of $38.96 to $78.51 at 50oh of SUEZ's existing rates. In year
two, they would see an approximate monthly increase of $39.26 for an average
monthly bill of $117.77 based on 75o/o of SUEZ existing rates. In year three, they
would see an approximate monthly increase of $39.26 for an average monthly bill
of $157.03 based on 100% of SUEZ existing rates. These proposed rates are
summarized in Exhibit 1, Schedule 3.
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The overall increase over the full three-year phase-in period to SUEZ rates using
the average bill calculations would result in an approximate increase of 204%o for
Residential customers and an increase of 303o/o for Commercial customers.
SUEZ anticipates that the proposed tariff increase coupled with SUEZ's
conservation communications and customer efforts, would provide incentives to
Eagle Water customers to reduce their usage to levels similar to SUEZ's existing
customers. SUEZ's experience is that these incentives should be expected to reduce
the overall financial impact of rate increases, although the extent to which this
would occur cannot be accurately predicted.
What is your conclusion based upon this analysis?
Assuming that Eagle Water were able to secure financing for the capital
expenditures recommended by Ms. Cooper in her testimony, the resulting Eagle
Water customer rates would need to be increased to satisfi, Eagle Water's increased
revenue requirement. That increase would be similar to what those customers could
expect to see if SUEZ acquires and upgrades the Eagle Water system and the
customers are phased in to SUEZ's rates. While providing a similar level of
service, investment and system maintenance, Eagle Water's ongoing operating
costs could be anticipated to be higher than SUEZ's given SUEZ's existing
operating efficiencies and economies of scale.
In summary, given the near-term capital investments that SUEZ believes would be
reasonably prudent to make to the Eagle Water system and the associated
operational cost increases, those customers receiving water from the system would
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be expected to experience similar rate increases regardless of whether Eagle Water
or SUEZ owned and operated the system.
Will approval of the transaction unduly burden existing SUEZ customers?
No. As established by the testimony of Ms. Cooper, absent the acquisition, SUEZ
customers would need approximately $11.7M of additional necessary system
improvements which can be avoided with the merging of operations with the Eagle
Water system.
Does this conclude your testimony?
Yes.
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Case No. SIJZ-W-18-02
DIRECT TESTIMONY OF
JARMILA CARY
EXHIBIT 1
Schedules 1\ lbr 2r 3, 4 and 5
Projected Eagle Waler Op€reting CoBb and Revonue
Doflcioncy
Ling Rsvi..d
201f
Cspitsl
lnv.atmentR.quirud Change
Capital
lnv6itmontRovl$d Requirod Chango
C.pital
lnvealmontR.vl!.d R.quir.d Ch.ngo
tPuc
Atrnual
Report Revl.ed
No.2017 Adiurl
'19 Dep.€cialion 6 Amodiation Exp€nse
20 Gross R€c6ipts Tax
21 Frsnchise Tax
22 Ptopady,Payroll,Excise and Olhor Taxos
65.276
0
6,047
59,401
1 Op.ratlng Ravonuo
qir.rUoI.F-!errllr:
2 Labor
3 Purchassd Wsler4 Porer Purcha8od lor Pumpang
5 Chemicals
6 Mat€riels & Suppll*
7 ConkactSeBicesI Ronlals- Prop€rty & EquipmsntI Transpotrslion Erp6nsei0 lnsurarce1l Adverlising
12 Rs16 C6re Exp€nse (Amortizslion)
13 Rogul6toryComm Exp (Olhor ex@pl lsxos)
14 B6d D6bl Exponse
15 Mis@llansus
16 Amo.tization Remedialion Cost6
17 Oth€r O&M Expensos
18 Oporating & Melnt.nanco Expon6o
23 Tot.l Oporating Ex[Enro. Borore lncomo Tu.t
24 Oporating lhcomo BofoB lncoms Taxoa
25 Slslo krcome Taxes
26 Fedoral ln@hs Tax6s
27 Del€rod Fsders ln@me Tax€s
28 Opor.llng lncomo
29 lnt raal Exp.nas
30 Utility Planl,n Swi@
32 Accumulslod O€preciation
33 Not Plant
34 Contribulions in Aid ot Conslruclion
35 Custom€r Advanc* lor Cons(ruclion
36 Accumulat€d Oef€rr€d lncome Taxgs
37 Matorials and Supplis
38 Prepeid Expenses
39 Working Capital(1/8th O&M Erpens6){0 Unamo.tizod bond di6@unt
41 RqloBase Adi -6et Ral€ Esse lo -0-
42 Olho. Rate Base ltems
43 Rato Baro
44 Rate of Relu.n
46 R.qulred N.t Opereting lncome
47 OIBr.Ung lncome Deiiciercy
48 Grora Rovonuo Converllon Factot
49 Rov.nuo Doicioncy (Ov€r.go)
50 Lono Term Dobt Retio
51 Commoh Equlty R.tlo
52 Totsl Cspltel
53 Long Term Dibt C@t - Estimat.d
54 Common Equtty Colt - Estim.ted
55 LonO lerm D€bt Weighted Ave. Co.t
56 Common Eguity Weiehted Avg. CoBt
57 Tot.l Capltal. Weight€r AvO. Co.t
65.276
0
6,047
59,401
174,951
0
6,047
59,401
6,047
59.401
4S4,691
0
6,047
59_401
760,105
279.150
0
161,279
o
65,905
41,067
1 0,450
25,201
20,120
0
1,879
13,239
0
6.812
0
760,105
279,150
0
16',t,279
0
65.905
41.067
10,450
25.201
20.120
0
1,879
13,239
0
6,812
0
90.000
760,'105
369,1 50
0
163,279
21,000
83.655
66,067
10.450
25,201
20,120
0
1,879
13,239
6,812
0
760,105
3S9,1 50
0
24.000
83.655
66.067
10,450
25,201
2A,120
0
1,87S
13,239
6,812
0
760.10s
369,1 50
0
163,279
24,000
83,655
66,067
10,450
25,201
20,120
0
1,879
13,239
2.000
24,000
1t.750
25,000
6.812
00000062tr,102 0 625,102 0158,750 783,052 0 0 783,852 0 0 783,852
81.000 201 244 376,191 118,500
755.826 0 755,626 8't,000 '158,750 1.024.251 201.240 o 1.225.491 tr(500 0 1.3i8.991
1,279 0 1,2f9 (264,146)
(25,14 5)
(70,971 )
0
(465,366) (r18,500)
(ss,978)
(157.997)
0
1201,210t 0 0 (583,086)
174,13'4,)
l.209,243)
0
227
0
0
0
0
$587
3,1 3i.71 5
(s9,306)
11.204 144\
lo ,0
3,13't.715
(59.306)
(1,2O4.1441
$o
2,700,000
(81.000)
$0 s98,s57
ar,83T 71 5
4244,001
6,708,000
1201.240\
12,539,715
(59,306)
(1.486.384)
$lil3,6El
3,950,000
(118.500)
16 489 715
{s9,306)
11.ti04_884 )
$0 $342,960 $0 $486,641
(5S,306)
(1.285.14411.868.265 1,868,265 2,619,000(s,15s.195) (3,1 55,195)0000000078.138 78,13800o 1,208,792 1,208.792
10,994.025
(3,1s5,195)
0
0
0
0
97,982
0
1,244,792
14.a25.525
(3.155,1S5)
0
0
0
0
97,982
0
1,208,792
4,107.265
(3.155,195)
0
0
0
0
97,982
0
1,208,792
ti,506 760 3,831,500
($1,200,792) a1,20A,7 92
-0.34% 0.000/6
8.50% 8.50%
$102,747) 5',t02.747
$2,619,000
0.00%
8.50%
$222,615
$9,1,15,604 $3,831,500
.2.75% -0.17./o
8.50% E.50%
s777,376 9325,678
$0 $12,977,1(N
_2.32.to
8.50./o 450%
c0 ii.r03,054
8.50'/"8.50.h
l0
50.00o/c 50.00% 5000% 50.00% 50.00% 50-00% 50.00% 50.00% 50.00% 50.00% 50.00"/6 50.00'/"
s0$0 t0 t2,638,0'!l 06,506,760
.6.37% -3-09%
8.50% 8.s0% 8.50%
30 s224,302 3553,075
5(106,799)5102,747t (it,052)t222,61sS - 9392,332175i1,315$ - $1,o2a,761 t2it'1,03E13s,9146t.i103.56i1
'1.363970 1.369970 1.369970 1.369970 1.369970 1.369970 1"369970 1.369970 t.369970 t3&9r0 f.i6rr70 1.359970
7.50%
9.50%
7.50%
9.50%
?.50%
9.50%
7.50%
9.50%
7.50%
9.50%
f.50./.
9.50.k
7.50.h
9.50%
7.fi%
9.50%
7.50.h
9.50%
7.50v
9.50%
7.50%
9.50%
7.s0./"
9.50%
3.75% 3.75v. X.75%3.75'v. 3.75Vo 3.75%3.75.h 3.75%3.75.h 3.75./c 7.750/o x 750/0
Groa6 Rovenuo Convor!lon Factor
59 Not Dcncioncy
60 Lor IPIJC A[...mrt Rxr
100 0000%
0.22750h
0.5000%
a 727 5%62 Totel
63 Strto Til Rno
67 N.tAftorTd
68 Comporl!. - IPUC FeeB, Uncollectlble, lnoome Tilo!
69 Comporlte Ro.ldurl
70 Ncl to Gr6. Multlpll.r
6 S2500,6
Sl€le ln@me Tax' Deticienoy
21.OA}0to
Fed6ral lncom€ Tax' D€ficiency
72 99t3%
6 8746%
19 4036%
27.0457.4
7L99430/o
136.9970'/r
Exhibit No 1
Case No SUZ'W-18'02
, Cary, SUEZ
Schedule la
o
65 Fed..al lncomc Tu Rsie
66 Effoctiv. Fodor.l Tu Rato
Avor.gr RaEldrnual Blll Ava6go Commmsrcld Blll
lncEu ovr.2017 *tud Dmru uslng ryg, alculrted blll 252.97%
lncBr!. ovorexlslln0 Elglo wsLrtrrltt u3lng dg. crlculttcd blll 235.5Sr1
Itt
12350 I
31.242 S/t3.o2 $
12.3t0 t
,1.500 I
€.3r0 t
9t.545 locnu
137.500 il.uRltca
3a9r!t
00.t!0
t3t t05
Erirtlng Avg. Blll
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1o714
was eflectlve February 23, 2OO9
!etltq4!lgl0$.{[B& MEmtlD 3li\rlct: EACU wAIEn $Rvlcf A16
VLlum!Cbns:
600CF or lesg
Owr 500CF (per 100CF=1CCF)
rffi;Effit
7S%
Ipmsr-rruyrant
r00%P€rcentage 50%
eg!09_r{$de3ledgel.(7.C rallqn )
Forallwaterusedlersthan3CCF(perCCF} S 0.7337
WinterRale(Octl-Apr30)greaterthan3CCF S 0.7337
SummerRatclMayl-Sep30)greaterthan3CCt S 0.9289
s
5
s
s
s
s
1.8400
0.4510
0_4510
1.1006
1.1005
1.3933
t,4674
1.4674
1,.8577
t *er!Is"{!
5/8"-3/4"
1"
1&1/4'& 1&u2"
2" or muitiple meters of equivalent capacity
3" or multlple meters of equivalent capacity
4" or multiple meters of equivalent capacity
6" or multiple meters of equivalent capacity
8" or multiple meters of equivalent capacity
10" or multiple mete6 of equivalent capacity
No CF allowance
No CF allowance
No CF allowance
No cF allowance
No cF allowance
No CF allowanc€
No CF allowance
No ct allowance
No CF allowance
5,28
6.75
71.54
17.97
34.93
55.r7
142.34
202.85
7.92
10.12
17.31
26.a7
s2.40
97.75
163.21
213.51
304.27
CF allowed
600
1,000
2,000
3,200
6,400
10,600
21,000
32,OOO
45,000
Monthly Montliy Monthly
Monthly
Monthly
Monthly
7.84
9.64
14.15
19.55
34.00
52.94
99.44
149.45
208.08
5
5I
s
5
sI
3
s
s
s
5
5
s
s
5
s
s
s
5
$
s
s
sI
s
Monthly
Monthly
10.55
13.50
23.09
69.47
130.34
277.67
244.69
40s.70
9.31
14.71
35.03
57.57
89.77
-Sg|ESU!EJA-P,E!!aIEIIB!_S.P. ruUf,!.Er,AIlD,slBylCE! EAGTE wArER sERvlclAR-EA
Monthly MontHyPr,vrte Fi.!
s
s
s
s
s
s
s
s
5
s
6"
10r
6.85
to.37
25.74
42.32
65.97
15.00
30.00
845.00
245.OO
100.00
500.00
4.65
7.05
77,52
24.78
44.49
5.98
10.58
26.27
43.17
67.33
lg!!-ED-UlEtEJlAt-EArEjERvlcE; EAGLE warER sERVlcE AREA
Nor-Metered
Nov - April
May - Oct
IDEQ Drlnling wate.fe€ lper potable connection)
Eagle Franchlse fee - wlthin Clty llmlts
Dlt@nnection - busines hours
Dis@nnection - non bu3lness hour
wholes.l" rar. - EadG Polnr Subdlt &lo, l.oosolidatGd blllod
3/4"
1"
7&714'&1&r/2"
6'
10'
whol€sale Counlryside Estates Order 29113
Per 1000 Gallons
New Connectlon hoolup fe€
Origlnal hookup fee
Entineeriq Study
New well
SurchaGe tor usage greater than 600 CF Cer non$2123120o9 -
2l22l2Ot6
S0.33 per month,
54.00 annually
Monthly
tL75
79.75
7o,4
MontHy
s
s
s
s
20.27
20.27
30.40
30.40
40.54
40.54
S0.50 bi.monthly,
53.00 annually S 0.25 o.2s 5
r%
0.25
Erhibit No. 1
Case No. SUZ-W-18-02
J. Cary, SUEZ
Schedule 3
s
s
s
s
s
s
20,00
30.00
20.00
30.00
20.00
30.00
6.84
8.54
13.15
18.56
33.00
51.94
98.84
148.45
201.O4
4.2404
N/A
N/A
N/A
N/A
N/A
N/As
s
s
s
44.075"4
was effectlve ,un€ l, 2018
I
5
s
I
s
s
s
s
s
9
st
s
s
5
s
s
s
s
s
E{tX**r.bH}rd.p lxoryb l.h5dE ldl
Bsr.#cf7,W,9
2p77,*
!,4q5!4
tpz7,6rs,a.!g
12912,taa
12.55!,S
1.252,@
6,419522
2,81.v5
2tUt,AZe
frll 6
2 51* 2,U4,140
2 5$ 2,2b,t244G 9)*:r5'
!o !x 9,oo,s$D7i 13,60,614
15 il* 12,7tr,$5
!6 r4r ,o,174,7qoqr 6,65s34t6t 3,113,035115'l t,g:t@l
2 6il 7At ,&6
all27r*108
12 q*
9ftrla.tt774t9.a*6.$r4.t*2fi2W
h
&ts?
ASff
ky lffih4br-5y-E4a
7Dt
r.6:1,!s ?ffi rrtrito, :*
7?,7U,r61 WM 74)4a,265 lWM
wre6il6pbnG.^|*.
$*
cffidlGffi b, I.Lr6 t7df, 13,.1' r&i.l',b2'.m',Hlcf ct cF cF of cF5Bb' 97 ,11 lo 2ol? 15 ,{, b tn U ,lt {tu 26.$2 1* tZZU2a 15* 4B,U 34X aB,ffi a* A,El aq:r a,tEk 7,% os u,al. 24T 4tt\ts1 29 fl,nt 1afr et,lzt 69s 7,6n& 1r9,S 45q 22t,O' 6r* 489!5 33t3 la,t21,Bl -596 52,{7' 15d 8,qs? aq,0! 1a* 5I,0o 7525x 2,774,151 lt# !,W,1n m?t{ 111,516 t31t x,uA{ 551,S9 215q 5D,512 16 6A 2,49,U t? $t 2,W,971 31 ?tr &,2S 15 !X @7,06JU 5t,6S 2124X a9,479 15 81* 2,{2,512 tl t% 2,L1,ta4 21 19r D2.63 15 # @5pa7Jn !15383 r1a2* 591t9 17OX 2,127,151 71* 2fi5,5?6 27# 174,659 1303i 162,96Mry 2Ar5 7M ?71,722 94* !,262r% !!91 1,2I,315 t6# 12a,S 93r* 169,4rAs 11E2S 4* !$,S7 53& 79,58 56X D9A27 1055X 141,716 105fi a63t1k 53.!2t 2Od 9{,gX 273* %,122 !5X 317.089 aa5/ 6tg 5131 1.558FS a1,g! t51t 9r,125 Z8 521,77f !6 59,6 't[t 52.!71 !U 5,351b .7.16 1l1r____-__!iAl_ 2B__lE!!!- r.$____!9!pg_ .oxJ/fL !a*__.........gz,&lD 1@w '4rs)M@M 1a,a7,gl 106 #7q2- t@6 tltl,s 1oB 2r!a,t!5
IOTA CF 3t.{I.9a6
*ltolBoI*
1 15X3t*
2' tlt
2791X
20124
16 361
2ofr
0 3(x
o 2a*o2ato6
27n
29X
-6 5q864
et 60t
m 91X
1791X
11!4X
6 {SX36r3ffi2@
1
tmdr 6nwbn.ky. &rl
85ra
WlturGEhptbQt -AI
t*
&hD[ xo r
GxXo SUZ.W-1&@
, OryWES.dul. {
Comparison of Eagle Water & SUEZ 2017 Year End Bllls and Consumptlon - per Average Gustomer
EAGLE SUEZ
Customers (year end)
Residential
Commercial
% commercial
% grovth
Revenue
Residential
Commercial
Avg. Annual Customer Bill
Residential
Commercial
Total Consumption (Gallons)
Residential
Commercial
Total Gonsumption (CFs)
Residential
Commercial
Avg. Annual Consumption (CFs) per Customer
Residential
Commercial
Avg Annual CCF per customer
Residential
Commercial
Avg Annual Gallons per customer
Residential
Commercial
1 CF cubic foot = 7.48 Gallons
173 $
513 $
183 $
471 $
171 $
522 $
2011
3,546
3,089
454
130k
$ 532,972 $
$ 233,100 $
2016
3,835
3,357
475
s73,291 $
247,932 $
2017 2018 (April)
3,908 4,046
3,418 3,535
490 51 1
13o/o 13%
2o/o 4o/o
2017
81,864
8,988
$ 32,926,000
$ 14,292,000
402
r,590
13,754,804,000
8.901.690,000
4,853,1 14,000
1,838,877,s40
1 ,190,065,508
648,812,032
14,537
72,186
145
722
108,738
539.9ss
2415
3,573
3,110
460
13%
1%
569,067 $
216,515 $
5'18,494
234,316
$
$
152
478
$
$
866,845,807
584,1 39,549
282,706,258
887,260,426
546,434,308
u0.826,118
863,624,703
581,827,020
281,797,683
791 ,265,898
556,09s,1 02
235,170,796
115,888,477
78,093,523
37,794,954
118,617,704
73,052,715
45,564,989
118,617,704
77,784,361
37,673,487
105,784,211
74,344,265
31 ,439,946
25,281
83.249
189,103
622,701
23,490
99,054
175,702
740,926
23,171
79,313
173,318
593,258
21,751
64,163
162,696
479,940
218
642
232
793
235
991
253
832
Exhibit No. 1
Case No. SUZ-W-18-02
l. Cary, SUEZ
Schedule 5