20050512Healy exhibits.pdf

UN
I
T
E
D

W
A
T
E
R

ID
A
t
-
'
c
n
ST
A
T
E
M
E
N
T

O
F

O
P
E
R
A
T
I
N
G

I
N
C
O
M
E

P
E
R

B
O
\

AN
D

P
R
O
F
O
R
M
A

U
N
D
E
R
PR
E
S
E
NT

A
N
D

P
R
O
P
O
S
E
D

R
A
T
E
S

F
O
R

T
H
E

't
L
.
.
A
R

E
N
D
E
D

J
U
L
Y
20
0
4
Co
m
p
a
n
y

R
e
b
u
t
t
a
l

C
a
s
e

Li
n
e
No
.
De
s
c
r
i
p
t
i
o
n
Op
e
r
a
t
i
n
g

R
e
v
e
n
u
e
s
Op
e
r
a
t
i
n
g

E
x
p
e
n
s
e
s
Op
e
r
a
t
i
o
n

&

M
a
i
n
t
e
n
a
n
c
e
10
.
De
p
r
e
c
i
a
t
i
o
n
Am
o
r
t
i
z
a
t
i
o
n

O
f

P
H

Am
o
r
t
i
z
a
t
i
o
n

O
f

U
P
A
A
To
t
a
l

D
e
p
r
e
c
i
a
t
i
o
n

a
n
d

A
m
o
r
t
i
z
a
t
i
o
n
11
.
Ta
x
e
s

O
t
h
e
r

T
h
a
n

I
n
c
o
m
e
12
.
13
.
14
.
Ad

V
a
l
o
r
e
m
Pa
y
r
o
l
l

T
a
x
e
s
To
t
a
l

T
a
x
e
s

O
t
h
e
r
15
.
To
t
a
l

O
p
e
r
a
t
i
n
g

E
x
p
e
n
s
e
s
Ex
c
l
u
d
i
n
g

I
n
c
o
m
e

T
a
x
e
s
16
.
Op

I
n
c
o
m
e

B
e
f
o
r
e

I
n
c
o
m
e

T
a
x
e
s
17
.
In
c
o
m
e

T
a
x
e
s
18
.
19
.
St
a
t
e

I
n
c
o
m
e

T
a
x
e
s
Fe
d
e
r
a
l

I
n
c
o
m
e

T
a
x
e
s
20
.
To
t
a
l

I
n
c
o
m
e

T
a
x
e
s
21
.
Ut
i
l
i
t
y

O
p
e
r
a
t
i
n
g

I
n
c
o
m
e
22
.
Ad
j
u
s
t
e
d

R
a
t
e

B
a
s
e
23
.
Ra
t
e

o
f

R
e
t
u
r
n

o
n

R
a
t
e

B
a
s
e
Co
l
u
m
n
Co
l
u
m
n
Co
l
u
m
n
Co
l
u
m
n
Co
l
u
m
n
Co
l
u
m
n
(1
)
(2
)
(3
)
(4
)
(5
)
(6
)
Pe
r
Un
d
e
r

P
r
o
p
o
s
e
d

R
a
t
e
s
Ad
j
u
s
t
m
e
n
t
Bo
o
k
s
Te
s
t

Y
e
a
r
Ad
j
u
s
t
e
d
Sh
o
w
n

o
n
07
/
3
1
/
0
4
Ad
j
u
s
t
m
e
n
t
Te
s
t

Y
e
a
r
Ad
j
u
s
t
m
e
n
t
s
Pr
o
f
o
r
m
a
$
3
1
,
00
9
_
22
2
54
0
,
23
8
31

,
54
9
~
46
0
6,

7
8
5
,
~~
~
$
3
8
32
5
,
98
3
21
.
51
%
Ex
h

3
,

S
c
h

1
$1
1
47
0
,
31
9
$
1
90
5
,
23
5
13
,
37
5
55
4
43
,
42
7
$
1
3
,
41
8
,
98
1
Ex
h

3
,

S
c
h

2
73
8
84
8
63
4
00
0
37
2
,
84
8
37
2
,
84
8
Ex
h

3
,

S
c
h

2
11
3
(5
1
11
3
)
Ex
h

3
,

S
c
h

2
39
7
93
2
32
9
32
9
79
7
35
8
58
4
81
9
38
2
,
17
7
38
2
,
17
7
Ex
h

3
,

S
c
h

3
Ex
h

3
,

S
c
h

3
52
8
,
69
6
32
1
,
99
4
85
0
,
69
0
42
,
24
5
32
3
68
,
56
8
57
0
,
94
1
34
8
,
31
7
1 ,
91
~
,
25
8
57
0
,
94
1
35
0
,
69
3
92
1
,
63
4
$1
2
.
88
1
.
85
5

$

(
3
.
01
8
.
38
4
\

$

9
.
86
3
.
47
1

$

6
.
74
2
.
09
6
16
.
60
5
.
56
7
Ex
h

3
,

S
c
h

4
44
6
,
41
8

$
(7
1
6
,
08
6
)

$
(2
6
9
,
66
8
)

$
53
9
,
36
7

$
26
9
,
69
9
Ex
h

3
,

S
c
h

4
00
5
,
94
2

~
(
31
4
20
6
69
1
,
73
6

$
17
0
,
95
5

$
86
2
,
69
1
$
3
,
45
2
,
36
0

1.
(
03
0
,
29
2
42
2
06
8

$
71
0
,
32
2

$
13
2
39
0
$
9
.
42
9
.
49
5
$
(
9
8
8
.
09
2
\

$
44
1
.
40
3

$
03
1
.
77
4
12
.
47
3
.
17
7
40
.
14
8
.
14
9
$1
A
14
8
.
14
9
02
%
90
%
Re
v
i
s
e
d
Ex
h
i
b
i
t

N
o
.
J.

H
e
a
l
y
UN
I
T
E
D

W
A
T
E
R

I
D
A
H
O
CA
S
E

U
W
I
-
04
-
Ra
t
e

B
a
s
e

S
u
m
m
a
r
y
Te
s
t

Y
e
a
r

E
n
d
e
d

J
u
l
y

3
1
20
0
4

a
n
d

t
h
e

P
r
o

F
o
r
m
a

Y
e
a
r

E
n
d
e
d

M
a
y

3
1
,
20
0
5
(A
)
(B
)
(C
)
(D
)
(E
)
Pr
o

F
o
r
m
a
Pe
r

B
o
o
k
s

J
u
l
y
Te
s
t

Y
e
a
r
Ye
a
r

M
a
y

3
1
Li
n
e

N
o
.
De
s
c
r
i
ti
o
n
,
2
0
0
4
us
t
m
e
n
t
s
us
t
e
d
us
t
m
e
n
t
s
20
0
5
Ut
i
l
i
t
y

P
l
a
n
t

I
n

S
e
r
v
i
c
e
$
2
2
7
,
4
8
3
,
39
9
$
2
2
7
,
4
8
3
,
39
9
39
9
,
35
2
$
2
5
8
88
2
,
75
1
Ac
c
u
m
u
l
a
t
e
d

D
e
p
r
e
c
i
a
t
i
o
n
,
A
m
o
r
t
i
z
a
t
i
o
n

o
f
UP
A
A

a
n
d

A
m
o
r
t
i
z
a
t
i
o
n

o
f

PH
F
U
(5
5
28
7
81
9
)
(5
5
,
28
7
81
9
)
89
2
,
91
2
)
(6
0
,
18
0
,
73
1
)
Ne
t

U
t
i
l
i
t
y

P
l
a
n
t
$
1
7
2
19
5
,
58
0
$
1
7
2
,
19
5
,
58
0
26
,
50
6
,
44
0
$
1
9
8
,
70
2
,
02
0
Cu
s
t
o
m
e
r

A
d
v
a
n
c
e
s

f
o
r

C
o
n
s
t
r
u
c
t
i
o
n
07
2
33
7
)
07
2
33
7
)
70
6
,
98
0
(6
,
36
5
,
35
7
)
Co
n
t
r
i
b
u
t
i
o
n
s

i
n

A
i
d

o
f

C
o
n
s
t
r
u
c
t
i
o
n

(
n
e
t
)
(4
4
67
0
,
35
9
)
(4
4
67
0
,
35
9
)
1
,
66
0
,
66
0
(4
3
00
9
69
9
)
Ut
i
l
i
t
y

P
l
a
n
t

A
c
q
u
i
s
i
t
i
o
n

A
d
j
u
s
t
m
e
n
t
s

(
g
r
o
s
s
)
60
0
,
76
2
60
0
,
76
2
60
0
,
76
2
Ac
c
u
m
u
l
a
t
e
d

D
e
f
e
r
r
e
d

I
n
c
o
m
e

T
a
x
e
s
(1
1
14
4
38
8
)
(1
1
,
14
4
38
8
)
(3
,
29
7
91
6
)
(1
4
44
2
,
30
4
)
Pr
e
-
19
7
1

I
n
v
e
s
t
m
e
n
t

T
a
x

C
r
e
d
i
t
s
(1
4
,
32
8
)
(1
4
32
8
)
07
1
(1
3
,
25
7
)
De
f
e
r
r
e
d

C
h
a
r
g
e
s
63
5
,
12
4
63
5
,
12
4
99
5
,
63
4
63
0
,
75
8
Wo
r
k
i
n
g

C
a
p
i
t
a
l
04
5
,
12
6
04
5
,
12
6
04
5
,
12
6
To
t
a
l

R
a
t
e

B
a
s
e
$
1
1
3
,
57
5
,
18
0
$
1
1
3
,
57
5
,
18
0
26
,
57
2
,
86
9
14
0
,
14
8
,
04
9
Ex
h
i
b
i
t

N
o
.
J.

H
e
a
l
y
Re
v
i
s
e
d
Pa
g
e

1

o
f

9
UNITED WATER IDAHO
Analysis of IPUC Staff Case
Details of Adjustments to
Operating Expenses
At Present Rates
S:\ACC\JERRY\Rates 2004 Official\Rebuttal Testimony\(Company Rebuttal Case Summary UWI-04-04.xls)OPEX
July 31 2004 Test Year
Actual Twelve Pro Forma Company
Adjustment Months Ended Expense at May Rebuttal Rebuttal
No.Description July 31,2004 Adjustments 31,2005 Adjustments Position
(1)(2)(4)(5)(6)
Summary Adjusted O&M:
Payroll to O&M 155,584 232 555 388,139 (39,686)348,453
Thrift Plan 90,156 321 477 477
Health Care 523,193 148,368 671 561 21,923 693,484
Pension 624,767 279 637 046 637,046
PEBOP 614 847 (145,345)469,502 469,502
Payroll Overheads (859,795)(52,956)(912 751)10,692 (902,059)
Deferred Early Retirement Cost Amortization 152 208 105,526 257 734 257 734
Deferred Enhanced Severance Program Amortiz 49,751 49,751 49,751
Purchased Water 107 788 87,528 195 316 (9,832)185,484
Tank Painting Amortization-Old 096 091 187 (3,046)141
Power 242 538 514 265 1 ,756,803 69,630 1 ,826,433
Amortization of Deferred Power 516,667 516,667 (26,903)489,764
Chemicals 235 950 78,224 314 174 (15,000)299,174
Water Qualty Testing (Outside Lab Only)78,348 662 010 86,010
Columbia Water Treatment Plant Misc apex-
Telephone, Water Quality Testing,Natural
Gas,other Utilities, Security Alarm 57,210 210 210
Variable Cost Savings Due to CWTP Operations (139,580)(139 580)(139,580)
Transportation Expense 362 613 43,652 406,265 (50,204)356,061
Customer Postage 170 280 061 178 341 178 341
Outside Computer 384 481 14,416 398 897 398,897
Outside Collection 99,590 (20,125)79,465 79,465
Customer Records & Collection
Expense/Miscellaneous Customer Accounting
Expenses 009 (10,879)130 130
Uncollectibles 162 706 (31,661)131 045 131 045
2..IPUC Annual Assessment 347 3,476 75,823 984 80,807
Rate Case Expense Amortization 81,667 667 17,155 98,822
Relocation Expense Amortzation 25,688 1,477 165 (11,165)16,000
Business Insurance 789,765 293,535 083 300 083,300
Adjust Dues, Eliminate Lobbying & Charitable Gi 14,005 (14 005)
Information Technology 105 094 046 156,140 156 140
Enhanced Severance Program 995 (2,995)
Expenses Related to Customer Growth 73,022 022 22,623 95,645
Expenses Related to Weather Normalization (8,792)(8,792)(3,849)(12,641)
Outside Services Legal 851 (28,851)000 000
Amortization of Deferred Terra Grande Expense~569 569 (794)775
Removal of Carriage Hill Operating Expense (986)(986)(645)(1,631)
Total Adjusted O&M 259 104 933,193 10,192,297 117 10,178,180
Unadjusted O&M:
M & S Fees 006,757 006 757 (20,678)986,079
Other Operation and Maintenance Expense 204,458 204 458 204 458
Total Unadjusted O&M 211 215 211 215 20,678 190,537
Total Operation and Maintenance Adjustmenl 933.03.95\ $368,717
Depreciation 738,848 647 661 386 509 (13,661)372 848
Amortization of Plant Held for Future Use 113 (51,113)
Amortization of Utility Plant Acquisition Adjustme 397 931 328 328
Ad Valorem Taxes
Payroll Taxes
358 598.395,
\ $
528,696 42,245 570,941 570,941
321,994 30,277 352 271 (3,954)348,317
Total Depreciation and Amortization
Total Taxes Other 1--850.69j) $ 72.522 $~--923.212 $ (3.954\919,258
18,118 367 $604 194 $722 561 $(52,410) $ 21 670,151Total Operating Expenses
Exhibit No.
Revised
Summary
J. Healy
UNITED WATER IDAHO
Computation of State and Federal Income Taxes
At Present and Proposed Rates
Line
No.
OPERATING INCOME BEFORE INCOME TAXES
LESS: TAX DEDUCTIONS
Interest Expense (A)
Excess Tax Over Book Depreciation (B)
TOTAL TAX DEDUCTIONS
Taxable Income-State
State Income Tax at 8%
Federal Taxable Income (L.1-L.3-L.7)
9a.
10.
Federal Income Tax at 35%
Production Credit
Less: Amortization of ITC
11.NET FEDERAL INCOME TAX EXPENSE
12.(A) CALCULATION OF INTEREST EXPENSE DEDUCTION:
13.Pro Forma Rate Base
14.Debt Percentage of Capitalization
15.Debt Portion of Rate Base
16.Debt Rate
17.INTEREST EXPENSE
18.(B) EXCESS TAX OVER BOOK DEPRECIATION:
19.Pro Forma Tax Depreciation
20.Pro Forma Book Depreciation
21.EXCESS TAX OVER BOOK DEPRECIATION (B)
EXISTING
RATES
(1)
$ 9 863/471
$ 5,164,866
$ 8,069,456
9) 13.234.322
$ (3,370,851)
(269 668)
9) 4.968.273
$ 1 738,896
160
S 1.691.736
PROPOSED
RATES
(2)
$16/605/567
164,866
069,456
13.234.322
371 245
269,700
71.002
909,851
160
862.691
$ 140,148,149
53.410%
74.853.126
90%
164.866
$ 14,442,304
372 848
069.456
Exhibit No.
J. Healy
Schedule 4
Revised
Page 1 of 1
..
-
Un
i
t
e
d

W
a
t
e
r

I
d
a
h
o
UW
I
-
04

(
Ca
l
c
u
l
a
t
i
o
n

R
e
v
e
n
u
e

R.
~
'
-
t
u
i
r
e
m
e
n
t
Te
s
t

Y
e
a
r

E
n
d
e
d

J
u
l
y

3
1
20
0
4

w
i
t
h

P
r
o

F
o
r
m
a

A
d
j
u
s
t
m
e
n
t
s
1
R
a
t
e

B
a
s
e
14
0
,
14
8
,
04
9
90
%
12
,
47
3
,
17
6
8,
4
4
1

,
4
0
3
03
1
,
77
3
68
3
78
5
,
52
3
2
R
e
q
u
i
r
e
d

R
a
t
e

o
f

R
e
t
u
r
n
3
R
e
q
u
i
r
e
d

N
e
t

O
p
e
r
a
t
i
n
g

I
n
c
o
m
e
4
A
d
j
u
s
t
e
d

N
e
t

O
p
e
r
a
t
i
n
g

I
n
c
o
m
e

R
e
a
l
i
z
e
d
5
N
e
t

O
p
e
r
a
t
i
n
g

I
n
c
o
m
e

D
e
f
i
c
i
e
n
c
y
6
N
e
t

T
o

G
r
o
s
s

M
u
l
t
i
p
l
i
e
r
7
G
r
o
s
s

R
e
v
e
n
u
e

I
n
c
r
e
a
s
e
**

C
a
l
c
u
l
a
t
i
o
n

o
f

I
n
c
r
e
m
e
n
t
a
l

N
e
t

t
o

G
r
o
s
s

Re
v
e
n
u
e

M
u
l
t
i
p
l
i
e
r
8
N
e
t

O
p
e
r
a
t
i
n
g

I
n
c
o
m
e

R
e
q
u
i
r
e
d
9
L
e
s
s

P
U
C

A
s
s
e
s
s
m
e
n
t

R
a
t
e
10

L
e
s
s

U
n
c
o
l
l
e
c
t
i
b
l
e
s

E
x
p
e
n
s
e
11

S
t
a
t
e

T
a
x
a
b
l
e

I
n
c
o
m
e

R
e
s
i
d
u
a
l
12

S
t
a
t
e

T
a
x

R
a
t
e
13

E
f
f
e
c
t
i
v
e

N
e
t

S
t
a
t
e

T
a
x

R
a
t
e

(
L

11

*

L

1
2
)
10
0
,
00
%
24
%
0.
4
0
%
99
.
36
%
00
%
95
%
14

F
e
d
e
r
a
l

T
a
x
a
b
l
e

I
n
c
o
m
e

R
e
s
i
d
u
a
l

(
L

11

-

L

1
3
)
15

I
n
c
r
e
m
e
n
t
a
l

F
e
d
e
r
a
l

I
n
c
o
m
e

T
a
x

R
a
t
e
16

E
f
f
e
c
t
i
v
e

N
e
t

F
e
d
e
r
a
l

T
a
x

R
a
t
e

(
L

14

*

L

1
5
)
91
.
4
1
%
35
.
00
%
31
,
99
%
17

C
o
m
p
o
s
i
t
e
:

U
n
c
o
l
l
e
c
t
i
b
l
e
s
,

F
e
e
s

&

T
a
x
e
s

(

L
i
n
e

9

+
1
0
+
1
3
+
1
6
)
18

C
o
m
p
o
s
i
t
e

R
e
s
i
d
u
a
l

(
L
8

-

L

17
)
19

N
e
t

t
o

G
r
o
s
s

M
u
l
t
i
p
l
i
e
r

(
L
8

L
1
8
)
40
.
58
%
59
.
4
2
%
68
3
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No.
Line No.Description
Adjustment of Payroll Chargeable to Operations and Maintenance
To adjust labor chargeable to operation and maintenance expense
based upon pay rates at April 1, 2005 and proposed employee
headcount . Use test year derived 0 & M percentage
Details
Administrative,Engineering, Accounting,lnside Customer Service 1 ,587,606
Production Department Employees 994,404
Transmission & Distribution Employees 259,298
Outside Customer Service Employees 400,786
Total Regular Employees
Temporary Employees $ 52,837
Stand By Pay 28,023
10.Management Incentive Pay 74,230
11.Non-Union Incentive Pay 077
12.Union Incentive Pay 15,900
13.Union Lump Sum Payments 28,700
14.ABCD Awards
243,767
15.Pro Forma Payroll ~ 2005 Rates 4,485,861
16.Test Year Derived O&M Percentage 74,6446%
17.Pro Forma Expense 348,453
18.Test Year Expense 155,584
19.Adjustment 192,869
Amount
192,869
Exhibit No.
Healy
Schedule 1
Revised
Page 1 of 34
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No.
Line No.Description
Adjustment of Payroll Chargeable to Operations and Maintenance
To adjust labor chargeable to operation and maintenance expense
based upon pay rates at April 1, 2005 and proposed employee
headcount . Use test year derived 0 & M percentage
Details
Administrative,Engineering, Accounting,lnside Customer Service 1 ,587,606
Production Department Employees 994,404
Transmission & Distribution Employees 259,298
Outside Customer Service Employees 400,786
Total Regular Employees
Temporary Employees $ 52,837
Stand By Pay 28,023
10.Management Incentive Pay 230
11.Non-Union Incentive Pay 44,077
12.Union Incentive Pay 15,900
13.Union Lump Sum Payments 28,700
14.ABCD Awards
243,767
15.Pro Forma Payroll ~ 2005 Rates 4,485,861
16.Test Year Derived O&M Percentage 74.6446%
17.Pro Forma Expense 348,453
18.Test Year Expense 155,584
19.Adjustment 192,869
Amount
192,869
Exhibit No.
Healy
Schedule 1
Revised
Page 1 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No.
Description
Adjustment of Employee Health Care Expense, Long Term Disability
and Group Term Life Insurance
To adjust health care, L TD and GTL expense to current costs level
and proposed head count.
Details
Gross HMO Blue Expense
Gross United Health Care Choice Plus Plans
Gross Dental & Vision Coverage
Group Term Life Insurance Coverage
Lond Term Disability Coverage
Employee Incentive Opt Out Payment
Total Coverage Cost
10.Less: Employee Contributions
11.Pro ForrJ:1a Health Care, L TD and GTL Expense
12.Test Year Expense
13.Adjustment
453,117
298,762
72;333
100
700
500
867,512
174,028
693,484
523,193
170,291
Amount
$170,291
Exhibit No.
Healy
Schedule 1
Revised
Page 3 of 34
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No.
Line No.Description
Adjustment of Employee Health Care Expense, Long Term Disability
and Group Term Life Insurance
To adjust health care, L TD and GTL expense to current costs level
and proposed headcount.
Details
Gross HMO Blue Expense 453,117
Gross United Health Care Choice Plus Plans 298 762
Gross Dental & Vision Coverage 333
Group Term Life Insurance Coverage 100
Lond Term Disability Coverage 21,700
Employee Incentive Opt Out Payment 500
Total Coverage Cost 867,512
10.Less: Employee Contributions 174,028
11.Pro Forma Health Care, L TD and GTL Expense 693,484
12.Test Year Expense 523,193
13.Adj ustment 170,291
Amount
$170,291
Exhibit No.
Healy
Schedule 1
Revised
Page 3 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No.
Description
Adjust Payroll Overheads Charged to Construction and
other non Operations & Maintenance Accounts
To normalize payroll overhead percentage charged to non-O&M
labor based on pro forma labor and benefits
Details
Pro forma Payroll at April 1 ,2005 Rates
% Chargeable to Other than O&M
Payroll Other Than O&M
Overhead Rate
Overheads Credit
Test Year Expense - Acct 922-000
Adj ustment
10.
11.
12.
13.
14.
15.
16.
17.
18.
Payroll Related Expenses
FICA Taxes
Federal Unemployment Taxes
State Unemployment Taxes
Group Health, Life & L
Workers Comp
Pension & PEBOP
Tuition Aid
Thrift Plan Expenses
Payroll Related Expenses
19.
20.
Payroll Overheads %
Additive for Non-Work Days
21.Overhead Rate to be Applied to non O&M Payroll
Sch 1
, p.
Line 21
Sch 3
Sch 3,p.4
Sch 3
Sch 1.
Sch 1,
Sch 1.p.4, 5
2005 OP
Sch 1.
$ 4,485 861
25.3554%
$1,137,408
79,31%
$ (902,059)
~ (859,795)
S (42.264\
$ 337,530
354
5,433
693,484
164 900
106,548
700
91,477
$ 2.413.426
63,03%
16.28%
79.31%
Note: Payroll OH % = Total Benefitsl ( Gross Payroll-(Gross Payroll*Non Work
Day Additive
63,03%
Amount
$(42,264)
Exhibit No, 3
Healy
Schedule 1
Revised
Page 6 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No.
Description
Adjust Payroll Overheads Charged to Construction and
other non Operations & Maintenance Accounts
To normalize payroll overhead percentage charged to non-O&M
labor based on pro forma labor and benefits
Details
Pro forma Payroll at April 1 ,2005 Rates
% Chargeable to Other than O&M
Payroll Other Than O&M
Overhead Rate
Overheads Credit
Test Year Expense - Acct 922-000
Adjustment
10.
11.
12.
13.
14.
15.
16.
17.
18.
Payroll Related Expenses
FICA Taxes
Federal Unemployment Taxes
State Unemployment Taxes
Group Health, Life & L
Workers Comp
Pension & PEBOP
Tuition Aid
Thrift Plan Expenses
Payroll Related Expenses
19.
20.
Payroll Overheads %
Additive for Non-Work Days
21.Overhead Rate to be Applied to non O&M Payroll
Sch 1, p,
Line 21
Sch 3,
Sch 3,
Sch 3,
Sch 1.
Sch 1,
Sch 1,p.4, 5
2005 OP
Sch 1,
$4,485 861
25.3554%
$ 1 ,137,408
79,31 %
$ (902,059)
~ (859,795)
142.264\
$ 337 530
354
5,433
693,484
164,900
106 548
700
91,477
$ 2.413.426
63.03%
16.28%
79.31 %
Note: Payroll OH % = Total Benefitsl ( Gross Payroll-(Gross Payroll*Non Work
Day Additive
63.03%
Amount
$(42 264)
Exhibit No.
Healy
Schedule 1
Revised
Page 6 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No.
Adjustment of Purchased Water Cost
Adjust purchased water expense for rented and leased
natural flow rights,shares in canal company s and
contracts/leases for storage water
Details
Natural Flow associated expenses
Shares in Canal Companys, maintenance
Contracts & Leases for storage water
Other Miscellaneous
Pro Forma Purchased Water
Test Year Expense
Adjustment
32,308
149,676
500
$ 185,484
107 788
77,696
Amount
$ 77,696
Exhibit No.
Healy
Schedule 1
Revised
Page 9 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No.
Adjustment of Purchased Water Cost
Adjust purchased water expense for rented and leased
natural flow rights shares in canal company s and
contracts/leases for storage water
Details
Natural Flow associated expenses
Shares in Canal Companys, maintenance
Contracts & Leases for storage water
Other Miscellaneous
Pro Forma Purchased Water
Test Year Expense
Adjustment
32,308
149,676
500
$ 185,484
107 788
77,696
Amount
$ 77,696
Exhibit No.
Healy
Schedule 1
Revised
Page 9 of 34
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No.1 0
Line No.
Adjustment of Deferred Tank Painting Expense
To adjust the test year level of amortization expense for
deferred tank painting due to additional deferred paintings
Details
Deferred Gowen Tank Painting 39,808
Deferred Aeronica Well Tank Painting 100
Total Deferred Expense 60,908
Amortization Period 20 Years
New Annual Amortization Expense 045
Continuing Amortizations from Prior Case 096
Pro Forma Purchased Water 141
10.Test Year Expense 096
11.Adjustment 045
Amount
$ 3,045
Exhibit No.
Healy
Schedule 1
Revised
Page 10 of 34
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 10
Line No.
Adjustment of Deferred Tank Painting Expense
To adjust the test year level of amortization expense for
deferred tank painting due to additional deferred paintings
Details
Deferred Gowen Tank Painting 39,808
Deferred Aeronica Well Tank Painting 100
Total Deferred Expense 60,908
Amortization Period 20 Years
New Annual Amortization Expense 045
Continuing Amortizations from Prior Case 096
Pro Forma Purchased Water 141
10.Test Year Expense 096
11.Adjustment 045
Amount
$ 3,045
Exhibit No.
Healy
Schedule 1
Revised
Page 10 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No.
Description
Adjustment of Purchased Power Expense
To adjust purchased power expense based on test year usage priced
at Idaho Power rates to be effective June 1, 2005; also
reflect for CWTP and RWPS
Details
Schedule 7 with and without franchise fee
Schedule 9 with and without franchise fee
Marden WTP repriced from 9P to 19
CWTP and RWPS projected consuptive power use
CWTP Redundant Power and Stand By Charge
006
354,377
172 290
236,400
360
$ 1,826,433Pro Forma Power Expense
10.242,538Test Year Expense
11.583,895Adjustment
Amount
$ 583,895
Exhibit No.
Healy
Schedule 1
Revised
Page 11 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 11
Description
Adjustment of Purchased Power Expense
To adjust purchased power expense based on test year usage priced
at Idaho Power rates to be effective June 1 , 2005; also
reflect for CWTP and RWPS
Details
Schedule 7 with and without franchise fee
Schedule 9 with and without franchise fee
Marden WTP repriced from 9P to 19
CWTP and RWPS projected consuptive power use
CWTP Redundant Power and Stand By Charge
Pro Forma Power Expense
10.Test Year Expense
11.Adjustment
19,006
354,377
172 290
236,400
44,360
1 ,826,433
1 ,242,538
583,895
Amount
$ 583,895
Exhibit No.
Healy
Schedule 1
Revised
Page 11 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 12
Description
Reflect Amortization of Deferred Power Expense
To reflect the amortization of deferred power expense as
established by IPUC Order No 28505 in Case UWI-00-
Details
Projected Balance in Deferred Power as of June 30, 2005
Amortization Period
Pro Forma Annual Amortization Expense
Test Year Expense
Adjustment
$1 ,469,292
3 Years
489,764
489,764
Amount
$489,764
Exhibit No.
Healy
Schedule 1
Revised
Page 12 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 13
Description
Adjust Chemical Expense
To normalize chemical expense using test year usage at current
prices; adjust for CWTP chemical usage; normalize phosphate
Details
Normalize test year expense at current prices
Normalize phosphate usage
CWTP chemical usage
Pro Forma Annual Expense
Test Year Expense
Adjustment
$ 242,029
57,145
299,174
$ 235,950
63,224
Amount
$ 63,224
Exhibit No.
Healy
Schedule 1
Revised
Page 13 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 13
Description
Adjust Chemical Expense
To normalize chemical expense using test year usage at current
prices; adjust for CWTP chemical usage; normalize phosphate
Details
Normalize test year expense at current prices
Normalize phosphate usage
CWTP chemical usage
Pro Forma Annual Expense
Test Year Expense
Adjustment
$ 242,029
57,145
299,174
$ 235,950
63,224
Amount
. $ 63,224
Exhibit No.
Healy
Schedule 1
Revised
Page 13 of 34
Line No.
UNITED WATERIDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 14
Description
Water Quality Testing Expense
To adjust test year level of outside laboratory expense to comply
with current testing cycle
Details
3a.
3b.
3c.
3d.
3e.
3f.
3g.
3h.
3i.
3j.
3k.
31.
Wells planned to adjust operations:
Inorganic Chemicals
Volitile Organic Chemicals
Synthetic Organic Chemicals
Nitrates
Nitrites
Fe/Mn
Arsenic
Radionuclides
Disinfection By-Products
Coliform
T2ESWTR
miscellaneous test
Total Pro Forma Outside Lab Testing
Test Year Expense
Adjustment
300
643
29,931
300
122
738
300
000
076
13,860
000
81,270
78,348
922
Amount
922
Exhibit No.
Healy
Schedule 1
Revised
Page 14 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 14
Description
Water Quality Testing Expense
To adjust test year level of outside laboratory expense to comply
with current testing cycle
Details
3a.
3b.
3c.
3d.
3e.
3f.
3g.
3h.
3i.
3j.
3k.
31.
Wells planned to adjust operations:
Inorganic Chemicals
Volitile Organic Chemicals
Synthetic Organic Chemicals
Nitrates
Nitrites
Fe/Mn
Arsenic
Radionuclides
Disinfection By-Products
Coliform
T2ESWTR
miscellaneous test
Total Pro Forma Outside Lab Testing
Test Year Expense
Adjustment
300
643
29,931
300
122
738
300
000
076
13,860
000
270
78,348
922
Amount
922
Exhibit No.
Healy
Schedule 1
Revised
Page 14 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 17
Description
Adjust Transportation Expense
To adjust transportation expense including lease, fuel maintenance,
labor and overheads insurance & lease disposal proceeds
at current projections and known & measurable changes
Details
Lease Cost
Fuel
Maintenance materials, outside service
Mechanic payroll and benefits
Insurance
Lease disposal proceeds
Pro Forma Annual Expense
10.Test Year O&M ratio 68,89%
11.Test Year Expense
12.Adjustment
299 719
130,200
000
56,400
(31 ,442)
516,877
356,061
362,613
552)
Amount
$ (6,552)
Exhibit No.
Healy
Schedule 1
Revised
Page 17 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 23
Description
Adjust IPUG Annual Assessment
To adjust test year level of IPUG annual assessment based
on latest assessment rate and pro forma adjusted revenue
Details
Total revenue subject to adjustment
IPUG assessment rate
Pro Forma IPUC Assessment
Test Year Expense
Adjustment
31,540,460
256200%
80,807
72,347
460
Amount
460
Exhibit No.
Healy
Schedule 1
Revised
Page 23 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 23
Description
Adjust IPUG Annual Assessment
To adjust test year level of IPUG annual assessment based
on latest assessment rate and pro forma adjusted revenue
Details
Total revenue subject to adjustment
IPUG assessment rate
Pro Forma IPUC Assessment
Test Year Expense
Adjustment
31,540,460
256200%
80,807
72,347
Amount
460
460
Exhibit No.
Healy
Schedule 1
Revised
Page 23 of 34
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 24
Line No.Description
Adjust Rate Case Expense Amortization
To amortize over three years the project level of deferred
rate case expense
Details
Estimated deferred rate case expense 305,000
Sharing of Costs of Public Information Campaign (8,533)
Net Rate Case Cost 296,467
Amortization Period Three Years
Pro Forma Rate Case Expense Amortzation
Test Year Expense
Adjustment
98,822
98,822
Amount
$ 98,822
Exhibit No.
Healy
Schedule 1
Revised
Page 24 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 24
Description
Adjust Rate Case Expense Amortization
To amortize over three years the project level of deferred
rate case expense
Details
305,000
(8,533)
296,467
Three Years
Estimated deferred rate case expense
Sharing of Costs of Public Information Campaign
Net Rate Case Cost
Amortization Period
Pro Forma Rate Case Expense Amortzation
Test Year Expense
Adjustment
98,822
98,822
Amount
$ 98,822
Exhibit No.
Healy
Schedule 1
Revised
Page 24 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 25
Description
Adjust Employee Relocation Expense Amortization
To amortize over five years deferred employee
relocation expense
Details
Unamortized balance of deferred relocation at
31-May-
Additional relocation expense incurred
Total Deferred Employee Relocation Expense
Amortization Period
Pro Forma Relocation Expense Amortzation
Test Year Expense
Adjustment
80,000
80,000
Five Years
16,000
25,688
(9,688)
Amount
(9,688)
Exhibit No.
Healy
Schedule 1
Revised
Page 25 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 25
Description
Adjust Employee Relocation Expense Amortization
To amortize over five years deferred employee
relocation expense
Details
Unamortized balance of deferred relocation at
31-May-
Additional relocation expense incurred
Total Deferred Employee Relocation Expense
Amortization Period
Pro Forma Relocation Expense Amortzation
Test Year Expense
Adjustment
80,000
80,000
Five Years
16,000
25,688
(9,688)
Amount
$ (9,688)
Exhibit No.
Healy
Schedule 1
Revised
Page 25 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 30
Description
Expenses Related to Customer Growth
To normalize operating expenses related to customers
added to the system during the test year and during
the pro forma period July 31,2004 to May 31,2005
Details
Purchased Power $ 1,826,432
Chemicals 299,174
Transportation Cost 357,266
General Insurance 083,300
T&D Excluding Payroll 388 083
$ 3,954 255Total Variable Cost
10,
11.
Total Variable Cost
Test Year Revenue
Variable Cost Percentage
954,255
31,000,222 =
12.76%
12.Customer Growth Revenue per Witness Gradilone 749,828
13.Operating Ratio Adjustment 95,645
Amount
95,645
Exhibit No.
Healy
Schedule 1
Revised
Page 30 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No.
Description
Expenses Related to Weather Normalization
To normalize variable cost power and chemicals due to the negative
weather normalization adjustment made by Witness Gradilone
Details
Purchased Power
Chemicals
Total Variable Cost related to weather
Total Variable Cost
Test Year Revenue
Revenue adjustment due to weather normalization
Variable Cost %
10.Operating Ratio Adjustment
1 ,826,432
299,174
$ 2.125.606
125,606
31,000,222 86%
(184,354)
86%
'12.641\
Amount
$ (12,641)
Exhibit No.
Healy
Schedule 1
Revised
Page 31 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 33
Description
Adjust Pro Forma Expense for Amortization of Deferred Terra
Grande Related Expenses
To adjust outside legal expense to recognize the amortization
of deferred legal expense incurred by Company in pursuit
of Terra Grande solution
Details
Total Expenses Incurred by Company
Amortization Period
Normalized Pro Forma Annual Expense
Test Year Expense
Adjustment
877
Five Years
775
775
Amount
775
Exhibit No.
Healy
Schedule 1
Revised
Page 33 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 34
Description
Adjust Operating Expense to Reflect Sale of Carriage Hill System
To normalize operating expense (power) due to the sale of the
Carriage Hill System
Details
Test year power cost incurred by Company
Test year customer accounting expense
Normalized Pro Forma Annual Expense
Adjustment (1,631)
Amount
$ (1,631)
986
645
Exhibit No.
Healy
Schedule 1
Revised
Page 34 of 34
Line No.
UNITED WATER IDAHO
Details of Adjustments to
Operations and Maintenance Expense
At Present Rates
Adjustment No. 34
Description
Adjust Operating Expense to Reflect Sale of Carriage Hill System
To normalize operating expense (power) due to the sale of the
Carriage Hill System
Details
Test year power cost incurred by Company
Test year customer accounting expense
Normalized Pro Forma Annual Expense
Adjustment
986
645
(1,631)
Amount
$ (1,631)
Exhibit No.
Healy
Schedule 1
Revised
Page 34 of 34
UNITED WATER IDAHO
Annual Depreciation Provision
Test Year Ended July 31, 2004
Pro Forma Pro Forma
Utility Contributions Pro Forma Net
Line Account Plant In Aid Advances Depreciable Depreciation Annual
No.Account Descri tion No,05/31/2005 05/31/2005 05/31/2005 Plant Rate reciation
NON DEPRECIABLE PLANT:
Organization 301-107 048 986) $100 062 0% $
Land & Land Rights, Water Rights - Source of Supply 303-372,659 (325,405)(294,807) $752,447 0% $
Land & Land Rights - Water Treatment 303-889 034 889,034 0% $
Land & Land Rights - Trans. & Distrib.303-40 411 626 (42,978) $368,648 0% $
Land & Land Rights - General Plant 303-213,383 213 383 0% $
TOTAL NON DEPRECIABLE PLANT 993 750 (325,405) $(344 771) $323,574
DEPRECIABLE PLANT:
Structures and Improvements - Source of Supply 304-774,026 (263,428)(80,686) $4,429,912 00% $598
10.Structures and Improvements - Water Treatment 304-15,162,696 162 696 00% $303 254
11.Structures and Improvements - Trans. & Distrib.304-40 388 35,388 00% $708
12.Structures and Improvements - General Plant 304-334 842 334,842 50% $371
13.Collecting & Impounding Reservoirs - Source of Supply 305-217 (21 950)61,267 00% $225
14.Lake, River & Other Intakes 306-272 275 (68,216)204 059 00% $081
15.Wells & Springs 307-288 130 (1,397,310)(425,949)7,464,871 86% $213,495
16.Infiltration Galleries & Tunnels 308-34,652 652 00% $693
17.Supply Mains 309-241,909 (9,391)(364,295)868 223 00% $364
18.Power Generation Equipment 310-442,125 442 125 00% $106
19.Power Electric Pumping Equipment - Source of Supply 311-722,649 814 218)(498 989)9,409,442 00% $470,472
20.Power Diesel Pumping Equipment - Source of Supply 311-00% $
21.Power Pumping Equipment - Water Treatment 311-266 952 266 952 00% $213 348
22.Power Pumping Equipment - Trans. & Distrib.311-40 055,935 (129 574)926 361 00% $318
23.Water Treatment Equipment 320-22,303,751 (36 860)(3,384)263 507 00% $113 175
24.Water Treatment Equipment - Membranes 320-787,496 787,496 14.00% $110,249
25.Distribution Reservoirs & Standpipes 330-40 817 037 163,794)(854,814)798 429 00% $115 969
26.Trans. & Distrib. Mains & Accessories -Intangible 331-145 145 00% $
Trans. & Distrib. Mains & Accessories SOS 331-144 144 00% $
Trans. & Distrib. Mains & Accessories 331-$ 104,212,459 $ (40 115 756)021,136)61,075,567 00% $221,511
...
Services 333-767 986 253 083)(563 650)951 253 50% $773 781
30.Meters and Meter Installations 334-40 11,963,160 (191 517)771 643 50% $294 291
31.Hydrants 335-40 067,642 (563 006)986)497,650 50% $12,441
32.Backflow Prevention Devices 336-40 00% $
33.Other Plant & Misc. Equipment - Intangible 339-00% $
34.Other Plant & Misc. Equipment - Source of Supply 339-45,794 794 00% $916
35.Other Plant & Misc. Equipment - Water Treatment 339-525 43,525 00% $871
36.Other Plant & Misc. Equipment - Trans. & Distrib.339-40 441 441 00% $769
37.Other Plant & Misc. Equipment - General Plant 339-15,798 798 00% $316
38.Office Fumiture and Equipment 340-690,776 131)689 645 67% $999
39.AM / FM System - Mapping 340-552 910 552 910 10.00% $291
40.Computer Hardware & Software 340-785,294 785,294 20.00% $357 059
41.IFMS / WAN / PeopleSoft 340-067 475 067,475 10.00% $406 748
42.Customer Information System 340-795 069 795,069 10.00% $179 507
43.Transportation Equipment 341-135 842 135,842 11.49% $15,608
49.Stores Equipment 342-24,448 24,448 67% $631
50.Tools, Shop and Garage Equipment 343-463,825 463,825 67% $937
51.Confined Space Monitor, Generator, Trench Shield 343-62,533 533 14.50% $067
52.Laboratory Equipment 344-116,643 (16 729)914 67% $664
53.Power Operated Equipment 345-58,817 817 00% $
54.Power Operated Equipment 345-59,765 765 14.50% $666
55.Communications Equipment 346-303,705 (71 123)232,582 67% $82,213
56.Miscellaneous Equipment 347-107 621 107 621 67% $178
57.Other Tangible Property 348-00% $
58.Master Plan 348-521,066 521 066 10.00% $107
59.Rounding
61.TOTAL DEPRECIABLE PLANT 251,573,963 51,916,389 020 586 193 636 988 409 005
62.TOTAL UTILITY PLANT IN SERVICE 259.567.713 (52.241.794\(6.365.357\200,960.562
Less: Depreciation Included on Transportation Schedule (15,608.25)
64.Less: AFUDC Tax Gross Up $684,962 at Composite rate of 3.0% per Audit Request No, 65 Response (20 549.00)
65.372,848
Exhibit No.
J. Healy
Schedule 2
Revised
Page 2
UNITED WATER IDAHO
Annual Depreciation Provision
Test Year Ended July 31, 2004
Pro Forma Pro Forma
Utility Contributions Pro Forma Net
Line Account Plant In Aid Advances Depreciable Depreciation Annual
No,Account Descri tion No.05/31/2005 05/31/2005 05/31/2005 Plant Rate reciation
NON DEPRECIABLE PLANT:
Organization 301-107 048 (6,986) $100 062
Land & Land Rights, Water Rights - Source of Supply 303-372,659 (325,405)(294 807) $752,447 0% $
Land & Land Rights - Water Treatment 303-889,034 889,034 0% $
Land & Land Rights - Trans. & Distrib.303-40 411 626 (42,978)368 648 0% $
Land & Land Rights - General Plant 303-213 383 213 383 0% $
TOTAL NON DEPRECIABLE PLANT 993,750 (325,405) $(344,771) $323,574
DEPRECIABLE PLANT:
Structures and Improvements - Source of Supply 304-774 026 (263,428)(80 686) $429,912 00%598
10.Structures and Improvements - Water Treatment 304-15,162,696 162,696 00% $303,254
11.Structures and Improvements - Trans. & Distrib.304-40 35,388 35,388 00% $708
12.Structures and Improvements - General Plant 304-334 842 334,842 50% $371
13.Collecting & Impounding Reservoirs - Source of Supply 305-217 (21 950)267 00% $225
14.Lake, River & Other Intakes 306-272 275 (68 216)204,059 00% $24,081
15.Wells & Springs 307-288,130 397,310)(425 949)464,871 86% $213,495
16.Infiltration Galleries & Tunnels 308-34,652 34,652 00% $693
17.Supply Mains 309-241,909 (9,391)(364,295)868,223 00% $37,364
18.Power Generation Equipment 310-442,125 442,125 00%22,106
19.Power Electric Pumping Equipment - Source of Supply 311-11,722,649 (1,814 218)(498,989)409,442 00% $470,472
20.Power Diesel Pumping Equipment - Source of Supply 311-00% $
21.Power Pumping Equipment - Water Treatment 311-266 952 266,952 00% $213 348
22.Power Pumping Equipment - Trans. & Distrib.311-40 055,935 (129 574)926,361 00% $46,318
23.Water Treatment Equipment 320-22,303,751 (36,860)(3,384)22,263,507 00% $113,175
24.Water Treatment Equipment - Membranes 320-787,496 787,496 14.00% $110 249
25.Distribution Reservoirs & Standpipes 330-817 037 (1,163,794)(854 814)798 429 00% $115 969
26.Trans. & Distrib. Mains & Accessories - Intangible 331-145 145 00%
Trans. & Distrib. Mains & Accessories SOS 331-144 144 00% $
Trans. & Distrib. Mains & Accessories 331-40 $ 104 212 459 $ (40,115 756)021 136)61,075 567 00% $221,511
::I.Services 333-40 767 986 253 083)(563,650)951 253 50% $773,781
30.Meters and Meter Installations 334-11,963,160 (191,517)11,771,643 50% $294,291
31.Hydrants 335-067 642 (563,006)986)497 650 50%12,441
32.Backflow Prevention Devices 336-40 00% $
33.Other Plant & Misc. Equipment - Intangible 339-00% $
34.Other Plant & Misc. Equipment - Source of Supply 339-794 45,794 00% $916
35.Other Plant & Misc. Equipment - Water Treatment 339-43,525 43,525 00% $871
36.Other Plant & Misc. Equipment - Trans. & Distrib.339-40 441 88,441 00% $769
37.Other Plant & Misc. Equipment - General Plant 339-15,798 15,798 00%316
38.Office Fumiture and Equipment 340-690,776 (1,131)689,645 67% $999
39.AM FM System - Mapping 340-552 910 552 910 10.00% $291
40.Computer Hardware & Software 340-785 294 785 294 20.00% $357,059
41.IFMS WAN PeopleSoft 340-067,475 067,475 10.00% $406,748
42.Customer Information System 340-795 069 795 069 10.00% $179,507
43.Transportation Equipment 341-135 842 135 842 11.49% $608
49.Stores Equipment 342-448 24,448 67% $631
50.Tools, Shop and Garage Equipment 343-463,825 463 825 67% $937
51.Confined Space Monitor, Generator, Trench Shield 343-62,533 62,533 14.50% $067
52.Laboratory Equipment 344-116,643 (16 729)914 67% $664
53.Power Operated Equipment 345-58,817 58,817 00% $
54.Power Operated Equipment 345-59,765 59,765 14.50%666
55.Communications Equipment 346-303 705 (71,123)232 582 67% $82,213
56.Miscellaneous Equipment 347-107 621 107 621 67% $178
57.Other Tangible Property 348-00% $
58.Master Plan 348-521 066 521,066 10.00%52,107
59.Rounding
61.TOTAL DEPRECIABLE PLANT 251 573,963 51,916 389 020,586 193 636 988 409,005
62.TOTAL UTILITY PLANT IN SERVICE 259.567.713 '52.241.794\'6.365.357\200.960.562
Less: Depreciation Included on Transportation Schedule (15,608,25)
64.Less: AFUDC Tax Gross Up $684,962 at Composite rate of 3.0% per Audit Request No. 65 Response (20,549.00)
65.372,848
Exhibit No, 3
J. Healy
Schedule 2
Revised
Page 2
. .
UN
I
T
E
D

W
A
T
E
R

I
D
A
H
O
De
t
a
i
l
s

o
f

A
d
j
u
s
t
m
e
n
t
s

t
o
Pa
y
r
o
l
l

T
a
x
e
s
At

P
r
e
s
e
n
t

R
a
t
e
s
Ad
j
u
s
t
m
e
n
t

N
o
.

Li
n
e
No
.
De
s
c
r
i
p
t
i
o
n
To

a
d
j
u
s
t

F
e
d
e
r
a
l

U
n
e
m
p
l
o
y
m
e
n
t

I
n
s
u
r
a
n
c
e

T
a
x
De
t
a
i
l
s
Fe
d
e
r
a
l

T
a
x
a
b
l
e

B
a
s
e
Fe
d
e
r
a
l

T
a
x

R
a
t
e
Em
p
l
o
y
e
e
s

c
o
v
e
r
e
d

b
y

F
e
d
e
r
a
l

U
n
e
m
p
l
o
y
m
e
n
t

T
a
x
(9
1

~
$
7
00
0

p
l
u
s

t
e
m
p

p
a
y

u
n
d
e
r

l
i
m
i
t

$
3
2
22
4
)
00
0
80
%
Ta
x
a
b
l
e

B
a
s
e
66
9
22
4
Ta
x
a
b
l
e

W
a
g
e
s
66
9
22
4
Ta
x

R
a
t
e
80
%
Pr
o

F
o
r
m
a

F
e
d
e
r
a
l

U
n
e
m
p
l
o
y
m
e
n
t

T
a
x
35
4
Te
s
t

Y
e
a
r

E
x
p
e
n
s
e
11
3
10
.
Ad
j
u
s
t
m
e
n
t
"'
$
24
1
Am
o
u
n
t
24
1
Ex
h
i
b
i
t

N
o
.
J.

H
e
a
l
y
Sc
h
e
d
u
l
e

3
Re
v
i
s
e
d
Pa
g
e

4

o
f

4
UN
I
T
E
D

W
A
T
E
R

I
D
A
H
O
De
t
a
i
l
s

o
f

A
d
j
u
s
t
m
e
n
t
s

t
o
Pa
y
r
o
l
l

T
a
x
e
s
At

P
r
e
s
e
n
t

R
a
t
e
s
Ad
j
u
s
t
m
e
n
t

N
o
.

Li
n
e
No
.
De
s
c
r
i
p
t
i
o
n
To

a
d
j
u
s
t

F
e
d
e
r
a
l

U
n
e
m
p
l
o
y
m
e
n
t

I
n
s
u
r
a
n
c
e

T
a
x
De
t
a
i
l
s
Fe
d
e
r
a
l

T
a
x
a
b
l
e

B
a
s
e
00
0
Fe
d
e
r
a
l

T
a
x

R
a
t
e
80
%
Em
p
l
o
y
e
e
s

c
o
v
e
r
e
d

b
y

F
e
d
e
r
a
l

U
n
e
m
p
l
o
y
m
e
n
t

T
a
x
(9
1

~
$
7
00
0

p
l
u
s

t
e
m
p

p
a
y

u
n
d
e
r

l
i
m
i
t

$
3
2
22
4
)
Ta
x
a
b
l
e

B
a
s
e
66
9
,
22
4
Ta
x
a
b
l
e

W
a
g
e
s
66
9
22
4
Ta
x

R
a
t
e
80
%
Pr
o

F
o
r
m
a

F
e
d
e
r
a
l

U
n
e
m
p
l
o
y
m
e
n
t

T
a
x
35
4
Te
s
t

Y
e
a
r

E
x
p
e
n
s
e
11
3
10
.
Ad
j
u
s
t
m
e
n
t
24
1
Am
o
u
n
t
24
1
Ex
h
i
b
i
t

N
o
.
J.

H
e
a
l
y
Sc
h
e
d
u
l
e

3
Re
v
i
s
e
d
Pa
g
e

4

o
f

4
Li
n
e
No
.
UN
I
T
E
D

W
A
T
E
R

I
D
A
H
O
De
t
a
i
l
s

o
f

A
d
j
u
s
t
m
e
n
t
s

t
o
Pa
y
r
o
l
l

T
a
x
e
s
At

P
r
e
s
e
n
t

R
a
t
e
s
Ad
j
u
s
t
m
e
n
t

N
o
.

De
s
c
r
i
p
t
i
o
n
To

a
d
j
u
s
t

S
t
a
t
e

U
n
e
m
p
l
o
y
m
e
n
t

I
n
s
u
r
a
n
c
e

T
a
x
De
t
a
i
l
s
Id
a
h
o

T
a
x
a
b
l
e

B
a
s
e
Id
a
h
o

U

C

T
a
x

R
a
t
e
Em
p
l
o
y
e
e
s

c
o
v
e
r
e
d

b
y

U
.
C,

T
a
x
(9
1

~
$
2
9
,
50
0

l
e
s
s

u
n
d
e
r

l
i
m
i
t

w
a
g
e
s

$
2
0
70
9
pl
u
s

t
e
m
p
s

$
5
2
83
7
)
Ta
x
a
b
l
e

B
a
s
e
Ta
x
a
b
l
e

W
a
g
e
s
Ta
x

R
a
t
e
Pr
o

F
o
r
m
a

I
d
a
h
o

U
n
e
m
p
l
o
y
m
e
n
t

T
a
x
Te
s
t

Y
e
a
r

E
x
p
e
n
s
e
10
.
Ad
j
u
s
t
m
e
n
t
50
0
20
%
$
2
71
6
62
8
$
2
71
6
,
62
8
20
%
43
3
96
1
47
2
Am
o
u
n
t
47
2
Ex
h
i
b
i
t

N
o
.
J.

H
e
a
l
y
Sc
h
e
d
u
l
e

3
Re
v
i
s
e
d
Pa
g
e

3

o
f

4
Li
n
e
No
.
UN
I
T
E
D

W
A
T
E
R

I
D
A
H
O
De
t
a
i
l
s

o
f

A
d
j
u
s
t
m
e
n
t
s

t
o
Pa
y
r
o
l
l

T
a
x
e
s
At

P
r
e
s
e
n
t

R
a
t
e
s
Ad
j
u
s
t
m
e
n
t

N
o
.

De
s
c
r
i
p
t
i
o
n
To

a
d
j
u
s
t

S
t
a
t
e

U
n
e
m
p
l
o
y
m
e
n
t

I
n
s
u
r
a
n
c
e

T
a
x
De
t
a
i
l
s
Id
a
h
o

T
a
x
a
b
l
e

B
a
s
e
Id
a
h
o

U

C

T
a
x

R
a
t
e
Em
p
l
o
y
e
e
s

c
o
v
e
r
e
d

b
y

U
.
C.

T
a
x
(9
1

~
$
2
9
,
50
0

l
e
s
s

u
n
d
e
r

l
i
m
i
t

w
a
g
e
s

$
2
0
70
9
pl
u
s

t
e
m
p
s

$
5
2
83
7
)
Ta
x
a
b
l
e

B
a
s
e
Ta
x
a
b
l
e

W
a
g
e
s
Ta
x

R
a
t
e
Pr
o

F
o
r
m
a

I
d
a
h
o

U
n
e
m
p
l
o
y
m
e
n
t

T
a
x
Te
s
t

Y
e
a
r

E
x
p
e
n
s
e
10
,
Ad
j
u
s
t
m
e
n
t
29
,
50
0
20
%
$
2
71
6
62
8
$
2
71
6
62
8
20
%
43
3
96
1
47
2
Am
o
u
n
t
47
2
Ex
h
i
b
i
t

N
o
.
J.

H
e
a
l
y
Sc
h
e
d
u
l
e

3
Re
v
i
s
e
d
Pa
g
e

3

o
f

4
UN
I
T
E
D

W
A
T
E
R

I
D
A
H
O
De
t
a
i
l
s

o
f

A
d
j
u
s
t
m
e
n
t
s

t
o
Pa
y
r
o
l
l

T
a
x
e
s
At

P
r
e
s
e
n
t

R
a
t
e
s
Ad
j
u
s
t
m
e
n
t

N
o
.

Li
n
e
No
.
De
s
c
r
i
p
t
i
o
n
To

a
d
j
u
s
t

E
m
p
l
o
y
e
r

F
I
C
A

T
a
x

L
i
a
b
i
l
i
t
y
De
t
a
i
l
s
FI
C
A
Am
o
u
n
t
Me
d
i
c
a
r
e
Am
o
u
n
t
Co
m
b
i
n
e
d
FI
C
A

B
a
s
e

f
o
r

2
0
0
5
90
,
00
0
No

L
i
m
i
t
FI
C
A

R
a
t
e

f
o
r

2
0
0
5
20
%
1
.
4
5
%
Pr
o

F
o
r
m
a

P
a
y
r
o
l
l

a
t

2
0
0
5

R
a
t
e
s
48
5
,
86
1
48
5
,
86
1
Wa
g
e
s

i
n

E
x
c
e
s
s

o
f

F
I
C
A

b
a
s
e
90
,
93
9
Ta
x
a
b
l
e

W
a
g
e
s
39
4
,
92
2
4,
4
8
5
,
86
1
FI
C
A

T
a
x

R
a
t
e
s
20
%
1.
4
5
%
Pr
o

F
o
r
m
a

F
I
C
A

T
a
x
27
2
48
5
65
,
04
5
33
7
53
0
Te
s
t

Y
e
a
r

E
x
p
e
n
s
e
31
1
,
92
0
10
.
Ad
j
u
s
t
m
e
n
t
Am
o
u
n
t
25
,
61
0
Ex
h
i
b
i
t

N
o
.
J.

H
e
a
l
y
Sc
h
e
d
u
l
e

3
Re
v
i
s
e
d
Pa
g
e

2

o
f

4
Li
n
e
No
.
UN
I
T
E
D

W
A
T
E
R

I
D
A
H
O
De
t
a
i
l
s

o
f

A
d
j
u
s
t
m
e
n
t
s

t
o
Pa
y
r
o
l
l

T
a
x
e
s
At

P
r
e
s
e
n
t

R
a
t
e
s
Ad
j
u
s
t
m
e
n
t

N
o
.

De
s
c
r
i
p
t
i
o
n
To

a
d
j
u
s
t

E
m
p
l
o
y
e
r

F
I
C
A

T
a
x

L
i
a
b
i
l
i
t
y
De
t
a
i
l
s
FI
C
A
Am
o
u

n
t
Me
d
i
c
a
r
e
Am
o
u
n
t
Co
m
b
i
n
e
d
FI
C
A

B
a
s
e

f
o
r

2
0
0
5
No

L
i
m
i
t
90
,
00
0
FI
C
A

R
a
t
e

f
o
r

2
0
0
5
20
%
1.
4
5
%
Pr
o

F
o
r
m
a

P
a
y
r
o
l
l

a
t

2
0
0
5

R
a
t
e
s

48
5
,
86
1

$
48
5
,
86
1
Wa
g
e
s

i
n

E
x
c
e
s
s

o
f

F
I
C
A

b
a
s
e
90
,
93
9
Ta
x
a
b
l
e

W
a
g
e
s
39
4
,
92
2
4,
4
8
5
,
86
1
FI
C
A

T
a
x

R
a
t
e
s
20
%
1.
4
5
%
Pr
o

F
o
r
m
a

F
I
C
A

T
a
x
27
2
,
48
5
65
,
04
5
33
7
,
53
0
Te
s
t

Y
e
a
r

E
x
p
e
n
s
e
31
1
,
92
0
Ad
j
u
s
t
m
e
n
t
10
.
Am
o
u
n
t
25
,
61
0
Ex
h
i
b
i
t

N
o
.
J.

H
e
a
l
y
Sc
h
e
d
u
l
e

3
Re
v
i
s
e
d
Pa
g
e

2

o
f

4
UNITED WATER IDAHO INC.
CASE UWI-O4-
SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF
Pre parer: Patricia Foss
Sponsoring Witness: Greg Wyatt
Telephone [phone]
Title: General Manager
REQUEST NO. 38:
Please provide an estimate of the costs that would be incurred if United Water
billed monthly instead of bi-monthly. Provide a breakdown of these costs by
category, including categories such as personnel , vehicles, bill preparation,
mailing, accounting, etc. How would the estimate be affected if monthly billing
were performed only during the summer season?
RESPONSE NO. 38:
The estimated annual incremental cost to convert from bi-monthly billing to
monthly billing is approximately $1 100,000. See the attached worksheet for a
detailed breakdown of cost.
Reading and billing monthly only in the summer is not recommended for the
reasons listed below. While it would reduce monthly reading and billing costs
somewhat, it creates other major challenges:
Temporary staffing has to be hired, trained and then let go every 6
months.
Investment in capital items , purchased specifically for this purpose,
that are idle 6 months per year. Examples are vehicles, meter reading
equipment, radios, computer stations, phones and tools.
Billing protocol changes and the cost of programming to accommodate
monthly billing ( i.e. hi/lo parameters in reading and billing, schedules,
due dates, past due notice processing)
Vendors who would have to accommodate our fluctuation from 38,500
bills per month to 77 000 bills per month.
Exhibit No, 15
Case No, UWI-O4-
Healy, United Water
Schedule
Page 1 of 3
. .
UNITED WATER IDAHO INC.
.;j
CASE NO. UWI-O4-
SECOND PRODUCTION REQUEST
IPUC STAFF
A TT A C H MEN T
RESPONSE TO
REOU EST NO.
Exhibit No. 15
Case No. UWI-O4-
Healy, United Water
Schedule
Page 2 of 3
Un
i
t
e
d

W
a
t
e
r

I
d

-
:
Ra
t
e

C
a
s
e

U
W
I
-
~
-

.
At
t
a
c
h
m
e
n
t

t
o

R
e
s
p
o
n
s
e

t
o

I
P
U
C

S
t
a
f
f

P
r
o
d
u
c
t
i
o
n

R
e
q
u
e
s
t

N
o
.

Es
t
i
m
a
t
e

o
f

C
o
s
t
Di
f
f
e
r
e
n
t
i
a
l

o
f

M
o
n
t
h
l
y
Bi
l
l
i
n
g
:
Un
i
t
s
Un
i
t

C
o
s
t
Me
t
e
r

R
e
a
d
i
n
g

P
e
r
s
o
n
n
e
l
:
Ad
d

F
o
u
r

M
e
t
e
r

R
e
a
d

P
o
s
i
t
i
o
n
s

a
t

f
u
l
l

c
o
n
t
r
a
c
t

w
a
g
e

a
s

o
f

A
p
r
i
l

2
0
0
5
20
8
0

h
o
u
r
s

a
t

$
1
4
,
55

p
e
r
30
,
26
4

$
Be
n
e
f
i
t

A
d
d
i
t
i
v
e

p
e
r

H
e
a
l
y

E
x
h
i
b
i
t

N
o
.
3,

S
c
h
e
d
u
l
e

1
,
p
a
g
e

6

o
f

3
4
Le
a
s
e
d

V
e
h
i
c
l
e
s
,
1
/
2

t
o
n

s
h
o
r
t

b
e
d

p
i
c
k
-
u
p
s
,

$
3
5
0

m
o
n
t
h
l
y

w
I

t
a
x
Fu
e
l
.
ba
s
e
d

o
n

7
00
0

m
i
l
e
s

p
e
r

y
e
a
r

p
e
r

v
e
h
i
c
l
e
,

2
5

g
p
m
,
$
2
,
10

p
e
r

g
a
l
l
o
n
In
s
u
r
a
n
c
e
,
M
a
i
n
t

&

O
p
e
r
a
t
i
n
g

C
o
s
t
Cl
o
t
h
i
n
g
:

4

s
e
t
s

o
f

w
i
n
t
e
r
/
s
u
m
m
e
r

u
n
i
f
o
r
m
s
63
.
03
%
12
0
20
0
00
0
10
0
Su
b
-
To
t
a
l

M
e
t
e
r

R
e
a
d
i
n
g

E
x
p
e
n
s
e
Cu
s
t
o
m
e
r

S
e
r
v
i
c
e
:
Ad
d

S
i
x

A
d
d
i
t
i
o
n
a
l

C
u
s
t
o
m
e
r

S
e
r
v
i
c
e

R
e
p
r
e
s
e
n
t
a
t
i
v
e
s
6
$
23
,
00
0

$
Be
n
e
f
i
t

A
d
d
i
t
i
v
e

p
e
r

H
e
a
l
y

E
x
h
i
b
i
t

N
o
,

3
,

S
c
h
e
d
u
l
e

1
,
p
a
g
e

6

o
f

3
4
63
,
03
%
Su
b
-
To
t
a
l

C
u
s
t
o
m
e
r

S
e
r
v
i
c
e

E
x
p
e
n
s
e
Bi
l
l
i
n
g

a
n
d

P
a
y
m
e
n
t

P
r
o
c
e
s
s
i
n
g

E
x
p
e
n
s
e
:
Ba
s
e
d

o
n

J
u
n
e

1
20
0
5

Cu
s
t
o
m
e
r

C
o
u
n
t

o
f

7
6
.
90
7
:

6

a
d
d
i
t
i
o
n
a
l

b
i
l
l
s

p
e
r

=

4
5
6
.
58
2

b
i
l
l
s
UB
S

B
i
l
l
i
n
g

C
o
s
t
Po
s
t
a
g
e

o
n

A
d
d
i
t
i
o
n
a
l

B
i
l
l
s
UB
S

A
r
r
e
a
r
s

L
e
t
t
e
r
s
:

d
o
u
b
l
e

c
u
r
r
e
n
t

v
o
l
u
m
e

o
f

8
8
,
63
5
Po
s
t
a
g
e

o
n

A
d
d
i
t
i
o
n
a
l

A
r
r
e
a
r
s

L
e
t
t
e
r
s
Lo
c
k
b
o
x

F
e
e
s

b
a
s
e
d

o
n

7
2
.
73
%

o
f

b
i
l
l
s
AC
H

F
e
e
s

b
a
s
e
d

o
n

d
o
u
b
l
i
n
g

o
f

c
u
r
r
e
n
t

1
.
55
5

m
o
n
t
h
l
y

b
a
t
c
h
e
s
To
t
a
l

A
n
n
u
a
l
Ex
p
e
n
s
e
12
1
05
6
30
2
80
0
35
2
00
0
60
0
$
2
2
6
10
9
.
13
8
,
00
0
98
1
$
2
2
4
98
1
.
45
6
,
58
2
32
8
73
9
45
6
,
58
2
30
5
9
13
9
,
66
8
88
,
63
5
53
,
18
1
88
,
63
5
37
0
0
32
,
79
5
33
2
,
07
2
14
7
7
49
,
04
7
18
.
65
8
34
7
2
6.
4
7
8
Su
b
-
To
t
a
l

B
i
l
l
i
n
g

a
n
d

P
a
y
m
e
n
t

Pr
o
c
e
s
s
i
n
g

E
x
p
e
n
s
e
Ad
d
i
t
i
v
e

f
o
r

m
i
s
c
e
l
l
a
n
e
o
u
s

c
o
s
t

i
n
c
l
u
d
i
n
g
:

t
r
a
i
n
i
n
g
,

o
f
f
i
c
e

s
u
p
p
l
i
e
s
,

I
t
r
o
n

m
a
i
n
t
e
n
a
n
c
e
,

Fe
d

E
x

f
r
o
m

U
B
S
an
d

M
e
l
l
o
n

B
a
n
k
,
p
a
y
r
o
l
l

p
r
o
c
e
s
s
i
n
g

a
n
d

H
R

e
x
p
e
n
s
e
,

e
t
c
,
To
t
a
l

A
n
n
u
a
l

E
x
p
e
n
s
e
$
6
0
9
,
90
8
.
Ex
h
i
b
i
t

N
o
.

1
5
Ca
s
e

N
o
,

U
W
I
-
O4
-
He
a
l
y
,

U
n
i
t
e
d

W
a
t
e
r
Sc
h
e
d
u
l
e

1
Pa
g
e

3

o
f

3
25
,
00
0
.
$1
,
08
5
,
99
9
.
E:\Common\UT ORD\28868.ord\28800.doc Page 1 of
/orders/28868.ord/28800.doc (3 hits)
$BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
in the matter of THE APPLICATION OF UNITED WATER IDAHO INC. FOR A DEFERRED
ACCOUNTING ORDER. )
CASE NO. UWI-01-
ORDER NO. 28800
On May 18 2001 , United Water Idaho Inc. (Company or United Water) filed an Application requesting
authorization to defer on its books, beginning May 1 , 2001 , certain electric power costs. United Water
purchases all of its electricity ITom Idaho Power Company (Idaho Power). The costs to be deferred are
the incremental costs the Company will realize as a direct result of Commission Order No. 28722 dated
May 1 , 2001 in Cases IPC- E-O 1- 7 and IPC- E-O 1-11. That Order authorized a change in Idaho Power
electric rates. United Water does not request a detennination of ratemaking treatment of these costs at
this time, but will request they be recognized in rates in the Company s next general rate case
application.
United Water s current water rates were established by Order No. 28505 dated September 5 , 2000 in
Case No. UWI-OO-1. That order recognized the level of Idaho Power Company s electric rates at the
date of the order. United Water estimates the magnitude of the increase in electric power rates to be
approximately $389 815 representing an increase of 35.75% over the level of electric cost authorized in
United Water s last rate case and an approximate 3.54% increase in the Company s authorized operation
and maintenance expense. Reference Order No. 28505. United Water characterizes the increase in
expense as extraordinary and material. Because the Company has continued to add customers (test year
1999 65 054 customers; April 2001 69,406 customers), the actual expense increase will be somewhat
larger.
As a regulated public utility, the Company notes that it is obligated to provide safe and reliable water
service at all times. Reference Idaho Code ~ 61-302. Unlike businesses that are not regulated, United
Water states that it does not have the option to reduce or curtail production as a way of avoiding higher
energy costs.
United Water requests that the period of deferral commence on May 1 , 2001. United Water further
requests that the deferral be approved for any additional increases in Idaho Power Company rates that
may be orderedoby the Commission in Cases IPC-01-7 and IPC-Ol-ll and any subsequent PCArate
increase or related surcharge that may be authorized prior to the Company s next general rate case. The
Company also proposes to apply a carrying charge on the unamortized deferred balance. The requested
carrying charge is the rate the Commission approved for interest on customer deposits, presently 6%.
Reference Order No. 28575. Allowance of a carrying charge is fair, just and reasonable, the Company
contends, because it fairly compensates the Company for the use of funds which will be necessary to pay
extraordinary electric power costs.
On June 18 2001 , the Commission issued Notices of Application and Modified Procedure in Case
No. UWI-01-2. The deadline for filing written comments was July 9 2001. Commission Staffwas
, the only party to file comments. The Company filed reply comments on July 11 , 2001.
Staff recommends approval of the Application except the Company s request to accrue a carrying
charge and the portion regarding accounting for amortization of deferred amounts (Applic~~ ~)15
Staff recommends that the Commission specifically reserve judgment regarding any future~i\WVI-W-O4-
Healy, United Water
Schedule 2
http://www.puc.state.id.us/Scripts/dtSearch/ dtisapi6.dll ?cmd=getdoc&Docld=5 3 82&Index ag~A pJlO05
E:\Common\UT ORD\28868.ord\28800.doc Page 2 of 4
treatment or amortization of the accumulated balances of deferred costs and associated income taxes
until the Company s next general rate case. Staff recommends that the Company be required to
maintain detailed records sufficient to replicate the Company s calculations of deferred charges at the
time the Company files an application requesting recovery of the deferred amounts.
Regarding the Company s proposal to accrue a carrying charge on unamortized deferred balances
Staff notes that the Commission in Order No. 28630 (Case No. PAC-00-5) in the matter of a similar
application by PacifiCorp stated
, "
the Commission finds that interest should not accrue on the deferral
balance. The reasonableness of accruing interest may be presented to the Commission for decision
when the determination of rate making treatment for these amounts in a future case is made." PacifiCorp
in that case, Staff states, had requested authorization to accrue a carrying charge on deferred excess
power costs. Staff in comments filed in that case opposed the carrying charge stating
If the deferral is approved, PacifiCorp will be allowed to defer the excess power expenses for future
recovery. The opportunity for such recovery is not currently allowed under the regulatory model for
PacifiCorp in Idaho. If the deferral were not approved, no interest would accrue and even the cost
recovery would be questionable. Therefore the changes to allow PacifiCorp the opportunity to recover
these costs along with the improved earnings position that will result are sufficient benefits for the
Company without interest. The ratemaking determination to accrue interest in the future on the Idaho
unamortized amounts should be made when the other ratemaking determinations are made.
Staff believes the benefits discussed in the PacifiCorp case are applicable to United Water as well and
therefore recommends similar treatment in this case.
United Water in reply comments contends that the circumstances in Case No. P AC- E-00-5 differ
materially from those in the present case and that Order No. 28630 is not controlling. The PacifiCorp
application, United Water notes, came at an early stage of the Northwest region s recent experience with
volatile energy prices and was aimed at preserving the opportunity to recover uncertain and unknown
excess power costs.
A key component of the Company s proposal in this case, United Water states, is the right to accrue a
carrying charge. United Water states it is willing to forego current recovery of extraordinary and
uncontrollable increases in electric power costs, but contends that the Company should be compensated
for this foregone opportunity and for the costs of funds necessary to pay its increased expenses. The
proposed carrying charge, the Company states, is intended only to keep the Company whole.
United Water notes that Idaho Power Company is permitted to accrue a carrying charge equal to the
customer deposit rate on deferred balances in its PCA. Reference Order No. 28722, p. 7. There is no
logical basis, the Company states, for granting a carrying charge to Idaho Power but denying the charge
to United Water.
United Water recognizes that a Commission Order permitting deferral is not a prudence
determinati on.
COMMISSION FINDINGS
The Commission has reviewed the filings of record in Case No. UWI-01-02 including the comments
and recommendations of the Commission Staff and the Company s reply comments. United Water has
requested authorization to defer on its books beginning May 1 2001 , certain electric power costs. The
Commission finds it reasonable to authorize such a deferral. The Company also proposes to apply a
carrying charge on unamortized deferral balances at a rate equal to the customer deposit rate. The
Commission finds it reasonable to reserve judgement on the recovery of the amount deferred as well as
the appropriateness of any carrying charge until actual recovery is requested. The Commission also
finds it reasonable to require the Company to maintain detailed records sufficient to replicate the
Company s calculation of deferral charges.
CONCLUSIONS OF LA W
The Idaho Public Utilities Commission has jurisdiction over United Water Idaho Inc., a water utility,
and the issues presented in Case No. UWI- W-01-2 pursuant to the authority granted in Ida~x\f~~~ Tit~
61 and the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq. Case No.UWI-W-o4-Q4
Healy, United Water
Schedule 2
Page 2 of 3
http://www.puc.state.id.us/Scripts/dtSearch/ dtisapi6.dll ?cmd=getdoc&Docld=53 82&Index... 5/11/2005
E:\Common\UT ORD\28868.ord\28800.doc Page 3 of 4
ORDER
In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED
and the Commission does hereby approve establishment of a deferral account for incremental costs
related to recent and future PCA related increases in Idaho Power Company electric power rates
beginning May 1 2001 and reserves judgement regarding United Water s request for a carrying charge.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within
twenty-one (21) days of the service date of this Order. Within seven (7) days after any person has
petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code
~ 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
2001.
day of July
PAUL KJELLANDER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
DENNIS S. HANSEN, COMMISSIONER
ATTEST:
Jean D. Jewell
Commission Secretary
vldfUWI-01-02 sw2
ORDER NO. 28800
Office of the Secretary
Service Date
August 1 2001
Document Properties
Title: BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
Author: vdarden
Template: Normal
Last saved by: avelasq
Revision number:
Application: Microsoft Word 8.
Exhibit No, 15
Case No, UWI-O4-04
Healy. United Water
Schedule 2
Page 3 of 3
http://www.puc.state.id.us/Scripts/dtSearch/ dtisapi6.dll ?cmd=getdoc&Docld=5 3 82&lndex.,. 5/11/2005
Ur

"I

W
a
t
e
r

Id
a
h
o
CQ
'
-
J

c
.
J
W
I
-
04
-
De
f
e
r
r
e
d

R
a
t
e

C
a
s
e

E
x
p
e
n
s
e

S
u
m
m
a
r
y
As

o
f

A
p
r
i
l

2
0
0
5

M
o
n
t
h

E
n
d
Co
n
t
r
o
l

A
c
c
o
u
n
t

1
8
6
-
80

(
P
r
o
j
e
c
t

T
0
6
0
0
4
1
06
0
)
Am
o
u
n
t

P
e
r
Ad
d
i
t
i
o
n
a
l
Un
i
t
e
d

W
a
t
e
r

I
d
a
h
o

R
a
t
e

C
a
s
e

U
W
I
-
04
-
In
v
o
i
c
e
s

i
n

H
a
n
d
Am
o
u
n
t
De
f
e
r
r
e
d
To
t
a
l

P
r
o

F
o
r
m
a
Re
b
u
t
t
a
l

P
r
o
j
e
c
t
i
o
n

o
f

D
e
f
e
r
r
e
d

R
a
t
e

C
a
s
e
no
t

b
o
o
k
e
d

a
s

o
f
Ve
r
i
f
i
e
d

i
n
Ex
p
e
n
s
e

t
o

b
e
Ra
t
e

C
a
s
e
Ex
p
e
n
s
e
Ap
r
i
l
Ge
n
e
r
a
l

L
e
d
g
e
r

Pr
o

F
o
r
m
a

A
p
r
i
l
In
c
u
r
r
e
d
Ex
p
e
n
s
e
Mc
D
e
v
i
t
t

&

M
i
l
l
e
r

L
e
g
a
l
69
2
.
56
4
.
57
,
25
6
.
00
0
,
69
,
25
6
.
Ut
i
l
i
t
y

R
e
s
o
u
r
c
e
s

I
n
c
53
7
,
67
,
4
3
2
.
67
,
97
0
.
00
0
.
77
,
97
0
.
Gi
v
e
n
s

&

P
u
r
s
e
l
y

L
e
g
a
l
10
0
.
80
8
.
90
8
.
00
0
.
90
8
.
Dr
.

W
a
l
l
a
c
e
55
8
,
55
8
.
55
8
.
AU
S
62
2
.
12
,
62
2
.
00
0
,
21
,
62
2
.
St
e
e
l
e

a
n
d

A
s
s
o
c
i
a
t
e
s
06
4
.
17
,
06
4
.
17
,
06
4
.
Ma
n
a
g
e
m
e
n
t

a
n
d

S
e
r
v
i
c
e

B
i
l
l
i
n
g
s
73
5
.
73
5
.
00
0
,
32
,
73
5
.
Gr
a
d
i
l
o
n
e

P
a
y
r
o
l
l
,
F
r
i
n
g
e

D
a
y
s
,

B
e
n
e
f
i
t

66
1
.
35
,
66
1
.
35
,
66
1
.
Mi
s
c

(

F
e
d
e
r
a
l

E
x
p
r
e
s
s
,

e
t
c
)
38
8
.
38
8
.
(1
6
6
.
25
)
22
2
.
CD
M
10
,
00
0
,
10
,
00
0
.
Pe
n
s
i
o
n

E
x
p
e
r
t

W
i
t
n
e
s
s
21
,
00
0
.
21
,
00
0
.
MJ

S
o
l
u
t
i
o
n
s
00
0
.
00
0
.
In
t
e
r
v
e
n
o
r

F
u
n
d
i
n
g
00
0
.
00
0
.
33
0
.
21
7
,
83
5
.
22
4
,
16
6
.
80
,
83
3
.
30
5
,
00
0
.
Re
d
u
c
e

b
y

5
0
%

o
f

S
t
e
e
l
e

&

A
s
s
o
c
i
a
t
e
s
53
3
.
29
6
46
7
.
Gr
a
n
d

T
o
t
a
l
Ex
h
i
b
i
t

N
o
.

1
5
Sc
h
e
d
u
l
e

3
Ca
s
e

N
o
.

U
W
I
-
04
-
He
a
l
y
,

U
n
i
t
e
d

W
a
t
e
r
t'"
NATIONAL ASSOCIATION OF WATER COMPANIES PETER L, COOK, EXECUTIVE DIRECTOR
MEM ORAND UM
TO:NA WC ACTIVE MEMBER COMPANIES' OFFICIAL
REPRESENTATIVES
FROM:MIKE HORNER, DIRECTOR OF ADMINISTRATION AND
MEMBERSHIP
DATE:FEBRUARY 13 2004
RE:DUES REMINDER - 2004 DUES GROSS WATER REVENUES
Enclosed is a duplicate GWR fonD for the company or companies for which you have
been designated official representative. If you have recently submitted your GWR form
and/or your dues, thank you, and please disregard this memo.
Please use the form to determine your NA WC dues for 2004. The dues rate is the same
as it was last year. The form also asks for information about your company, including the
number of ~~public water systems" your company represents. This provides us with
general information concerning the industry. Please note that, for income tax purposes
the percent of nondeductible dues attributable to lobbying expenses for 2004 has been
estimated to be 18%.
Also note that NA WC's bylaws have been changed so that dues must be paid by
April 30.
We are appreciative of your involvement in NA WC , and look forward to your continued
membership. If you have any questions about membership, please call me at 202/833-
21 81. Thank you!
.. .. . .
Exhibit No,
Case No, UWI-O4-
SUITE 1212,1725 K STREET N.w. -WASHINGTON. D.C. 20006-1401 - [phone] - FAX (202) 3~~A~tuy;~ed Water
Pagel of 2
~=-~ -
NATIONAL ASSOCIATION OF WATER COMPANIES
PETER L. COOK, EXECUTIVE DIRECTOR
COMPANY:
OFFICIAL REPRESENTATIVE:
LOCAL CONTACT:
COMPANY ADDRESS (Local):
TELEPHONE:
FAX:
Official Rep E-mail Address:
Local Contact E-Mail Address:
GWR Questionnaire Form
United Water Idaho
Mr. W oyn e L. OuOb 6-~E fro~ f'. wy
Mr.-W8Yf1e L. Booe ()-,ec. Cro/Ly 1'. WY,4-T/
8248 W. Victory Road f. o. D)c- I 'to y~.:;;
Boise, 10 8.3700 4165 3.17/'1 -,!) i(dO
208-362- 7325
208-362 - 7069
V;t Il; q
"~_
l...,.._l~~,o
=~~.
REO.. 7
I J I
...........J-.-...U...L"L--=---_.--.-
~~r fY CA4 f'. ifT ~k:10 . '" \
---~....".
0 0
(/ -
PARENT OR HOLDING COMPANY, IF ANY: United Water Resources
ZIP CODE(S) SERVED: '(,3/,1 b g 3642.
q,
36!;J ~ 3bg, 8370'2
) ~
370~ g-:S70'-l
~s7pS" ~37D'f , g~7/';J.) ~37/~
~~"'/~
~7/b. ~~7~ n
JGross Water Revenues:
5'"30 O~O No. of Customers (12/31/021:
200'1 NAWC Dues ~ ~O 001. t;/
/77
)(
1" PM AJ-AI
Population Served (12/31/($: ~33, 600
No. of Employees (12/31/QS:
20cif Dues Schedule
Gross Water Revenues
Under $50,000.. ...." .... ...,............., '....... .....,... .......
..,.".... ..........,..........,.................................. .......... ..... ......................
$47.
$50,000-999,999..,.............................,.,."".".....,.,."...,.....,.,......... ..."......,.................................................... .....
.... .~... ..
18 %
$1 ,000,000-000,000...........................................................................$2,025 plus $1.05 per 1,000 in excess of 1,000,000
$2,000,000-000,000................................................,........,.................$3,089 plus $0.78 per 1,000 in excess of 2,000 000
$3,000,000 or more...............................................................................$3,865 plus $0.59 per 1,000 in excess of 3,000,000
* Under the Omnibus Budget Reconcilliation Act of 1993, expenditures paid or incurred in connection with "Lobbying
activities no longer qualify as deductible business expenses for tax purposes. NAWC is required to provide you with an
~~ate of that portion of your 2003 NAWC dues that will not be deductible because of the new law. That figure
J/o of your 2003 dues. it OOL.-J
* Contributions or gifts to NAWC are not tax deductible as charitable contributions for income tax purposes. However,
they may be tax deductible as ordinary and necessary business expenses subject to restrictions imposed as a result of
the association s lobbying activities.
3bDO.
11,/40) ':21f ~~~i ~~~U~I-04-
SUITE 1212 1725 K STREET N.w.. WASHINGTON , D.C. 20006-1401 . [phone]. FAX [phone]~ealy, United Water
Schedule 5
Page 2 of 2
O€- '15'10- O~'1- OJ:l...-390
OB - '1~ to - oa~ - q'3D3~o
18/:
Ac
c
o
u
n
t
Nu
m
b
e
r
18
6
0
0
1
18
6
0
0
6
18
6
0
2
4
/
1
8
6
3
2
4
18
6
3
2
0
18
3
0
0
0
18
6
6
0
1
De
s
c
r
i
p
t
i
o
n
De
f
e
r
r
e
d

R
a
t
e

C
a
s
e

E
x
p
e
n
s
e
De
f
e
r
r
e
d

P
o
w
e
r

E
x
p
e
n
s
e
De
f
e
r
r
e
d

R
e
l
o
c
a
t
i
o
n

C
o
s
t
De
f
e
r
r
e
d

R
e
n
t
s

(

L
a
k
e
w
o
o
d

W
e
l
l

L
e
a
s
e
)
De
f
e
r
r
e
d

T
e
r
r
a

G
r
a
n
d
e

C
o
s
t
De
f
e
r
r
e
d

T
a
n
k

P
a
i
n
t
i
n
g
To
t
a
l
Un
i
t
e
d

W
a
t
e
r

I
d
a
h
o
Ca
s
e

U
W
I
-
04
-
De
f
e
r
r
e
d

D
e
b
i
t
s

B
a
l
a
n
c
e

f
o
r

t
h
e

T
e
s
t

Y
e
a
r

e
n
d
e
d

J
u
l
y

3
1
20
0
4
an
d

t
h
e

P
r
o

F
o
r
m
a

Y
e
a
r

e
n
d
i
n
g

M
a
y

3
1
,
20
0
5
Am
o
r
t
i
z
a
t
i
o
n
Pe
r
i
o
d

i
n
Mo
n
t
h
s
Re
b
u
t
t
a
l

I
n
t
e
r
i
m

A
c
t
i
v
i
t
y
Ba
l
a
n
c
e

a
t
Ba
l
a
n
c
e

a
t
Ju
l
y

3
1
,

2
0
0
4
De
b
i
t
Cr
e
d
i
t
Ma
y

3
1
,
20
0
5
12
,
16
9
.
29
2
,
83
0
.
(8
,
53
3
.
00
)
29
6
,
46
7
.
00

3
6

M
o
n
t
h
s
36
3
,
24
0
.
10
6
,
05
2
.
46
9
,
29
2
.
00

3
6

M
o
n
t
h
s
15
7
21
5
.
(7
7
21
5
.
00
)
80
,
00
0
.
00

6
0

M
o
n
t
h
s
19
,
4
5
8
.
(4
6
0
.
00
)
18
,
99
8
.
00

6
0
0

m
o
n
t
h
s
30
0
.
1,
4
0
6
.
(8
3
0
.
00
)
87
6
.
85

3
6

M
o
n
t
h
s
79
,
74
2
.
(2
,
58
0
.
00
)
77
,
16
2
,
00

1
2
0

Mo
n
t
h
s
63
5
,
12
4
.
40
0
,
28
9
.
(8
9
,
00
)
94
5
,
79
5
.
An
n
u
a
l
Ex
p
e
n
s
e
98
,
82
2
.
48
9
,
76
4
.
16
,
00
0
.
55
2
.
29
2
.
71
6
.
Ex
h
i
b
i
t

N
o
.

1
5
Sc
h
e
d
u
l
e

6
Ca
s
e

N
o
.

U
W
I
-
W-
O
4
-
O
4
He
a
l
y
,

U
n
i
t
e
d

W
a
t
e
r
Un
i
t
e
d

W
a
t
e
r

I
d
a
h
o
Ca
s
e

U
W
I
-
04
-
4
Ac
c
u
m
u
l
a
t
e
d

D
e
f
e
r
r
e
d

F
e
d
e
r
a
l

I
n
c
o
m
e

T
a
x
e
s
Ba
l
a
n
c
e

a
t

J
u
l
y

3
1
,
20
0
4

a
n
d

C
o
r
r
e
c
t
i
o
n

o
f

S
t
a
f
f

P
r
o

F
o
r
m
a

A
d
j
u
s
t
m
e
n
t
Li
n
e

N
o
.
Ac
c
o
u
n
t

a
n
d

D
e
s
c
r
i
p
ti
o
n
Ba
l
a
n
c
e

a
t
7/
3
1
/
2
0
0
4
Pr
o

F
o
r
m
a
Ba
l
a
n
c
e
1
A
c
c
u
m
u
l
a
t
e
d

D
e
f
e
r
r
e
d

F
I
T

A
C
R
S
2
A
c
c
u
m
u
l
a
t
e
d

D
e
f
e
r
r
e
d

F
I
T

M
A
C
R
S
3
D
e
f
e
r
r
e
d

F
I
T

A
D
R
4
D
e
f
e
r
r
e
d

F
I
T
5
D
e
f
e
r
r
e
d

F
I
T

A
F
U
D
C

E
q
u
i
t
y
6
D
e
f
e
r
r
e
d

A
d
v
a
n
c
e
s

a
n
d

C
o
n
t
r
i
b
u
t
i
o
n
s

G
r
o
s
s

U
p
90
1
,
4
8
0
72
7
56
7
42
5
,
4
9
2
(7
9
8
89
3
)
55
5
08
7
33
3
,
65
6
7
D
e
f
e
r
r
e
d

F
e
d
e
r
a
l

F
I
T

a
t

J
u
l
y

3
1
20
0
4
14
4
38
9
8
P
r
o

F
o
r
m
a

T
a
x

D
e
p
r
e
c
i
a
t
i
o
n

U
s
i
n
g

S
t
a
f
f

P
l
a
n
t

A
d
d
i
t
i
o
n
s
9
S
t
a
f
f

P
r
o

F
o
r
m
a

B
o
o
k

D
e
p
r
e
c
i
a
t
i
o
n
10

E
x
c
e
s
s

T
a
x

O
v
e
r

B
o
o
k

D
e
p
r
e
c
i
a
t
i
o
n
11

F
e
d
e
r
a
l

I
n
c
o
m
e

T
a
x

R
a
t
e
12

I
n
c
r
e
m
e
n
t
a
l

D
e
f
e
r
r
e
d

F
e
d
e
r
a
l

I
n
c
o
m
e

T
a
x
13

C
o
r
r
e
c
t
e
d

S
t
a
f
f

T
o
t
a
l

D
e
f
e
r
r
e
d

F
I
T

(
L
i
n
e

7

p
l
u
s

L
i
n
e

1
2
)
14

C
o
m
p
a
n
y

T
o
t
a
l

D
e
f
e
r
r
e
d

D
I
T

a
s

o
f

J
u
l
y

3
1
20
0
4
15

C
o
r
r
e
c
t
e
d

S
t
a
f
f

A
D
I
T

A
d
j
u
s
t
m
e
n
t
97
4
25
7
89
5
,
97
0
07
8
,
28
7
35
.
00
%
1
,
77
7
,
40
0
12
,
92
1
,
78
9
14
4
38
9
1
,
77
7
,
40
0
Ex
h
i
b
i
t

N
o
.

1
5
Sc
h
e
d
u
l
e

7
Ca
s
e

N
o
.

U
W
I
-
04
-
He
a
l
y
,

U
n
i
t
e
d

W
a
t
e
r
Un
i
t
e
d

W
a
t
e
r

I
d
a
h
o
Ca
s
e

U
W
I
-
04
-
4
Ac
c
u
m
u
l
a
t
e
d

D
e
f
e
r
r
e
d

F
e
d
e
r
a
l

I
n
c
o
m
e

T
a
x
e
s
Ba
l
a
n
c
e

a
t

J
u
l
y

3
1
,

2
0
0
4

a
n
d

I
n
c
r
e
m
e
n
t
a
l

A
m
o
u
n
t

o
n

R
e
v
i
s
e
d

P
l
a
n
t

A
d
d
i
t
i
o
n
s
Li
n
e

N
o
.
Ac
c
o
u
n
t

a
n
d

D
e
s
c
r
i
p
t
i
o
n
1
A
c
c
u
m
u
l
a
t
e
d

D
e
f
e
r
r
e
d

F
I
T

A
C
R
S
2
A
c
c
u
m
u
l
a
t
e
d

D
e
f
e
r
r
e
d

F
I
T

M
A
C
R
S
3
D
e
f
e
r
r
e
d

F
I
T

A
D
R
4
D
e
f
e
r
r
e
d

F
I
T
5
D
e
f
e
r
r
e
d

F
I
T

A
F
U
D
C

E
q
u
i
t
y
6
D
e
f
e
r
r
e
d

A
d
v
a
n
c
e
s

a
n
d

C
o
n
t
r
i
b
u
t
i
o
n
s

G
r
o
s
s

U
p
7
D
e
f
e
r
r
e
d

F
e
d
e
r
a
l

F
I
T

a
t

J
u
l
y

3
1
,
20
0
4
8
D
e
f
e
r
r
e
d

T
a
x

o
n

A
F
U
D
C

E
q
u
i
t
y

p
r
o

f
o
r
m
a
9
R
e
v
i
s
e
d

P
r
o

F
o
r
m
a

D
e
f
e
r
r
e
d

F
e
d
e
r
a
l

F
I
T
10

P
r
o

F
o
r
m
a

T
a
x

D
e
p
r
e
c
i
a
t
i
o
n

U
s
i
n
g

R
e
v
i
s
e
d

P
l
a
n
t

A
d
d
i
t
i
o
n
s
11

P
r
o

F
o
r
m
a

B
o
o
k

D
e
p
r
e
c
i
a
t
i
o
n
12

E
x
c
e
s
s

T
a
x

O
v
e
r

B
o
o
k

D
e
p
r
e
c
i
a
t
i
o
n
13

F
e
d
e
r
a
l

I
n
c
o
m
e

T
a
x

R
a
t
e
14

I
n
c
r
e
m
e
n
t
a
l

D
e
f
e
r
r
e
d

F
e
d
e
r
a
l

I
n
c
o
m
e

T
a
x
15

R
e
v
i
s
e
d

T
o
t
a
l

D
e
f
e
r
r
e
d

F
I
T

(
L
i
n
e

7

p
l
u
s

L
i
n
e

1
2
)
16

C
o
m
p
a
n
y

T
o
t
a
l

D
e
f
e
r
r
e
d

D
I
T

a
s

o
f

J
u
l
y

3
1
20
0
4
17

C
o
m
p
a
n
y

A
d
j
u
s
t
m
e
n
t

t
o

A
D
I
T
Ba
l
a
n
c
e

a
t
7/
3
1
/
2
0
0
4
90
1
48
0
72
7
56
7
42
5
,
4
9
2
(7
9
8
,
89
3
)
55
5
,
08
7
33
3
65
6
14
4
38
9
50
4
03
4
64
8
,
4
2
3
Pr
o

F
o
r
m
a
Ba
l
a
n
c
e
14
,
35
5
,
36
5
37
2
84
8
98
2
,
51
7
35
.
00
%
79
3
,
88
1
44
2
30
4
11
,
14
4
38
9
29
7
,
91
5
Ex
h
i
b
i
t

N
o
.

1
5
Sc
h
e
d
u
l
e

8
Ca
s
e

N
o
.

U
W
I
-
04
-
He
a
l
y
,

U
n
i
t
e
d

W
a
t
e
r
~l~Accelet4!it~ c.o-st reOJViH"'1 systlilm,
tfiOOtr~'* (1l~~rrt)
d.. .oW.w..w,"".
Internal Reven ueCOde
168 Accelerated cost recovery system..
(7) Coordination with nonrevenue taw$~
Any refltfrence in this subsectlarl to a provision notcontainad in this t1tle shaH be tr~ated tor
pt~rj)!)~S of this $ubs~tlooc$ Q ref~rence to such provision $5$ ill eTf.ectoo t'1e date of thet~rtactment of thl$;: rmr~9taph-
(8) Termin1(ttion.
ih~$$;iJb$etti()h $11;,11 not ~ppty to property pJac,oo ;n scrvh:a after Decetn~r3At 2005.
(k) Spatial aUowarrtce for certain property acquired after S~ptember 2001, andbefore January 1, 2005.
( 1 ') Addlt_una I allowance.
in tnB casf!Qf any qua/moo property-
(/\)
the: depredation deduction provided by sect:it)f1 167(a) for the t~xab!~ year if)which such property Is placed in service$haH indud~ (in u!!owante equal to 30
p~rt~r1t of t;headju$red~$i~$()r the quanfi~dproperty and
(Ei) the adjusted basts of the quatifiecl prapertyshcH b~ r~duced by thearnount of
such d~dlJcti()n before computing the amPtll1totherwlse. aHowabl(; 0$ (i depreciationd~dv~tj!)r. under- thi$ d~pter fot $uch tax~lhh= y~ar end iimy subsequent taxab1e yft.tijf ,
(2) QuaUfied property"
For purpose,'5 of thi$ subseqiol1 "
"".,
(A) In g~(1E:H.EtL The t~rm ~quaml~d property'" meat1sprpperty"""',
(I) 0) to which thissedion applJes which has a r~(;ov~ry period of 20 years or
je$$f
(H) which is computer $oftware (a$ deffned in $cet;1)on 1(:):1(1)( l)(B) ) forwhic'n a deduttlon is. ()Ho\\j~ble: und~t ~ctlon 167(a) without re,gard tothis subsection
(III) which Is Wate-f" utmtypropeftyj or
(IV) wt)IchiscUJsiified leaseholcllmprovemertt oroperty"
(If) the ()rfgina~ use of whichcommenc:e5 with the taxpflyer ofter $eptemb~r
101' 20011'
(Ill) which l$~
(!)aCqUlr~ by the tJ:1xpay~r after $eptember 10" 20fJlt cHid befot~Jafmary 1, 2005) but only if no written bindingcol'1tracttor th€
ttcquiSttion was in effect before StEptember 11,2001 f ()t
(II) acquired by the taxpayer pursuant to a .,vrltten blnd!ngcomrE!r:t
which was ent~red IntOtt~r Sept~mbef 10, 2001, andoof(H:ftj~%lUQrv
1; 2005, afld
Page 1 of 1
Un
i
t
e
d

W
a
t
e
r

I
d
a
h
o
An
a
l
y
s
i
s

o
f

E
f
f
e
c
t

o
f

G
r
o
s
s
i
n
g

U
p

E
q
u
i
t
y

P
o
r
t
i
o
n

o
f

AF
U
D
C
Ba
l
a
n
c
e
d
St
a
t
e
"
P
r
i
o
r
to

C
a
D

E
x
Wi
t
h

G
r
o
s
s

U

fo
r

T
a
x
e
s
Ef
f
e
c
t

o
f

C
a
p

En
d
Ex

&

A
F
U
D
C

Re
s
u
l
t
Wi
t
h
O
U
T

G
r
o
s
s

U
p
Ef
f
e
c
t

o
f

C
a
p

En
d
Ex

&

A
F
U
D
C

Re
s
u
l
t
$
3
0
00
0
(2
1
00
0
)
0
9
,
00
0
(3
0
0
)

(
3
,
30
0
)
90
0

90
0
60
0

6
,
60
0
(2
0
0
)

(
2
20
0
)
$
4
0
0

$
4
,
4
0
0
10
.
(3
0
0
)
70
0

40
0
(1
3
3
)
$
2
6
7
Re
v
e
n
u
e
s
Op
e
r
a
t
i
n
g

C
o
s
t
s
Op
e
r
a
t
i
n
g

I
n
c
o
m
e
In
t
e
r
e
s
t

E
x
p
e
n
s
e
Ad
d
i
t
i
o
n
a
l

A
F
U
D
C
Pr
e
t
a
x

I
n
c
o
m
e
In
c
o
m
e

T
a
x

E
x
p
e
n
s
e
Ne
t

I
n
c
o
m
e
Re
t
u
r
n

o
n

E
q
u
i
t
y
$
3
0
,
00
0
(2
1
00
0
)
00
0
(3
,
00
0
)
00
0
00
0
)
00
0
10
.
0%

~
.
Al
l
o
w
e
d

R
O
E
33
.
33
%
Co
s
t

o
f

d
e
b
t

--
-
-
-
-
-
-
.
60
%

D
e
b
t

P
o
r
t
i
o
n

o
f

R
a
t
e

B
a
s
e

5
,
40
%
Eq
u
i
t
y

P
o
r
t
i
o
n

o
f

R
a
t
e

B
a
s
e
10
0
%

T
o
t
a
l

R
a
t
e

B
a
s
e
$
6
0
00
0
40
,
00
0
$
1
0
0
00
0
We
i
g
h
t
e
d

A
v
g
,

C
o
s
t

o
f

C
a
p
i
t
a
l

-

W
i
t
h

t
a
x

g
r
o
s
s

u
p
We
i
g
h
t
e
d

A
v
g
,

C
o
s
t

o
f

C
a
p
i
t
a
l

-

N
o

t
a
x

g
r
o
s
s

u
p
As
s
u
m
e
d

t
a
x

d
e
d
u
c
t
i
o
n

f
o
r

A
F
U
D
C

(
b
a
s
e
d

o
n

d
e
b
t

o
n
l
y
)
Ac
t
u
a
l

C
u
r
r
e
n
t

T
a
x

L
i
a
b
i
l
i
t
y

a
t

R
a
t
e

o
f

3
3
,
33
%
To
t
a
l

B
o
o
k

T
a
x

L
i
a
b
i
l
i
t
y

R
e
c
o
r
d
e
d
DF
I
T

-
In
c
r
e
a
s
e

(
R
e
d
u
c
t
i
o
n
)

i
n

R
a
t
e

B
a
s
e
Bo
i
s
e

A
F
U
D
C

-

2
0
0
5
-
03
-
07
.
xl
s
$
6
,
00
0
$
6
6
,
00
0
$
6
,
00
0
$
6
6
,
00
0
00
0
00
0
00
0
00
0
$
1
0
,
00
0
$
1
1
0
,
00
0
$
1
0
00
0
$
1
1
0
,
00
0
$
5
0
0
$
5
0
0
$1
6
7
$1
6
7
20
0
13
3
($

3
3
)
$
3
3
$
3
0
,
00
0
(2
1
00
0
)
00
0
(3
,
30
0
)
70
0
6,
4
0
0
(2
,
13
3
)
$
4
26
7
Ex
h
i
b
i
t

N
o
.

1
5
Ca
s
e

N
o
.

U
W
I
-
04
-
He
a
l
y
,

U
n
i
t
e
d

W
a
t
e
r
Sc
h
e
d
u
l
e

J
l
J
P!
e
~
.
:
.

2

6
f
~
5/
1
1
/
2
0
0
5

2
:
5
0

P
M