memo_re_proptaxexempt.pdf

MEM 0 RAND UM
TO:Terri Carlock
Permanent File
FROM:Patricia Harms
DATE:April 18,2005
SUBJECT:United Water Pollution Control Tax Exempt Equipment
I visited United Water Idaho (UWI) offices on Friday April 15, 2005 to audit the
Company s reported investment in water pollution equipment as reported to the
Commission by letter received March 15,2005. This verification was postponed until after
direct testimony was filed in Case No. UWI-04-4 and scheduled to correspond with the
availability of UWl's Jarmila Carr. I verified the Company s reported investments in
Property Plant and Equipment of $238,175,727, Construction Work in Progress of
$21 079,373 and Materials & Supplies of $223 331 for a total of $259,478 431.
The Company s reported 2004 additions to investment in pollution control equipment of
$13,492 019 were net of one retirement of $4 000. However, another retirement of $11,800
should have been incorporated into the Company s report as well as another minor
adjustment to expenditures for project C04KI02. Through review of the Company
construction reports and discussion with Company personnel, the 2004 additions to
investment in pollution control equipment should have been $13,479,562 (for a total
pollution control investment of $47 745,388 at December 31 2004).
UWI has agreed that the ratio of its pollution control investment to its total property, plant
and equipment is 18.400/0 and not the 18.41 % reported in its letter received March 15, 2005by the Commission.
Attached to this memo is a letter addressed to the State Tax Commission as required by
Idaho Code ~ 63-602P.
PROPERTY TAX EXEMPTION MEMORANDUM