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Home My WebLink About20050406Stockton exhibits.pdfUnited Water Idaho Case No. UWI-04- Staff Adjustment to Remove and Reclassify AFUDC Equity Tax Gross-up Staff Adjustment to Remove Accumulated Depreciation and Depreciation Expense Staff Adjustment to Deferred Debits Total AFUDC Rate Overall Rate of Return Equity Tax Gross-up Percentage 11.62% 84% 78% Equity Tax Gross-up Rate Base Adjustment Depreciation Expense Adjustment Accumulated Depreciation Adjustment Composite Depreciation Rate 3% May 2000 - December 2000 2001 2002 2003 thru 9-30-2004 (includes CWTP) CWTP October 1 2004 - May 31 2005 11 ,480 116 068 171 908 226 551 222 840 684 962 344 273 292 157 797 685 13,482 067 Staff Adjustments to recognize the removal and reclassification of AFUDC AFUDC Equity Tax Gross-Up portion of AFUDC to remove from Plant in Service Deferred Debits - AFUDC Equity Tax Gross-up - Account 186XXX 684 962 13,482 067 684 962 Depreciation Expense to remove from O&M Expenses - test year Accumulated Depreciation to remove from Rate Base Exhibit No.1 01 Case No. UWI-04- K. Stockton, Staff 4/06/05 UNITED WATER IDAHO UWI-04- Staff Calculation of the Production Credit (1)(2)(3)(4)(5) Staff Adjusted Plant Pro Forma Production & Line Account Average Rate Water No.Number Plant Account Description Base Treatment Plant 301-Organization 111 642 303-land & land Rights, Water Rights - Source of Supply 021 409 021,409 303-land & land Rights - Water Treatment 893,548 893 548 303-40 land & land Rights - Trans. & Distrib.395 698 303-land & land Rights - General Plant 205,126 304-Structures and Improvements - Source of Supply 552,893 552 893 304-Structures and Improvements - Water Treatment 954 601 954 601 304-Structures and Improvements - Trans. & Distrib.599 304-Structures and Improvements - General Plant 076,483 305-Collecting & Impounding Reservoirs - Source of Supply 997 997 306-lake, River & Other Intakes 223 044 307 -Wells & Springs 854 317 308-Infiltration Galleries & Tunnels 311 311 309-Supply Mains 192 625 310-Power Generation Equipment 372 701 311-Power Electric Pumping Equipment - Source of Supply 296,996 296 996 311-Power Diesel Pumping Equipment - Source of Supply 311-Power Pumping Equipment - Water Treatment 331,866 331 866 311-40 Power Pumping Equipment - Trans. & Distrib.925,127 320-Water Treatment Equipment 20,981,936 981 936 320-Water Treatment Equipment - Membranes 500,000 500 000 330-40 Distribution Reservoirs & Standpipes 294 072 331-Trans. & Distrib. Mains & Accessories - Intangible 139 331-Trans. & Distrib. Mains & Accessories - SOS 138 331-Trans. & Distrib. Mains & Accessories 473,556 333-40 Services 35,436 665 334-Meters and Meter Installations 125,083 335-40 Hydrants 035 848 336-40 Backflow Prevention Devices 339-Other Plant & Misc. Equipment - Intangible 339-Other Plant & Misc. Equipment - Source of Supply 304 304 339-Other Plant & Misc. Equipment - Water Treatment 841 841 339-40 Other Plant & Misc. Equipment - Trans. & Distrib.85,019 339-Other Plant & Misc. Equipment - General Plant 15,187 340-Office Furniture and Equipment 658 035 340-AM FM System - Mapping 532 463 340-Computer Hardware & Software 741 192 340-IFMS WAN PeopleSoft 759 047 340-Customer Information System 725 609 341-Transportation Equipment 129,057 342-Stores Equipment 23,502 343-Tools, Shop and Garage Equipment 437 206 343-Confined Space Monitor, Generator, Trench Shield 60,113 344-laboratory Equipment 112 130 345-Power Operated Equipment 56,541 345-Power Operated Equipment 891 346-Communications Equipment 257 180 347-Miscellaneous Equipment 103 457 348-Other Tangible Property 348-Master Plan 282 882 Rounding Total Plant In Service 245,522 077 Total Production & Water Treatment Plant 724 701 Equity Portion of the Overall Rate of Return 65% as proposed by Staff Net Income attributable to Production and Water Treatment Plant 916,699 Equity piece of Overall Rate of Return X Total Production & Water Treatment Plant Production Credit Percentage 00% Production Credit Reduction to Federal Income Taxes 87,501 Exhibit No. 102 Case No. UWI - W -04- K. Stockton, Staff 4/06/05 UNITED WATER IDAHO Case No. UWI-04- Staff Adjustment to M&S Fees Details of Adjustments to M&S Fees Line No.Descri tion Amount Test Year M&S Fees included in Company Filing 006 757 Actual M&S paid in 2004 Corporate M&S fees for 2004 395 735 Regulated M&S fees for 2004 590 343 Non-regulated M&S fees for 2004 626 Total 005 705 Remove Non-regulated M&S Fees for 2004 (19 626) Line 5 Staff Proposed M&S Fees 986 079 Line 6 minus Line 7 Staff Adjustment (20 678) Line 8 minus Line Operating Income Tax Effect of Adjustment: Adjustment Total State Income Tax Rate State Income Tax Expense Taxable Federal Income Federal Income Tax Rate Federal Income Tax Expense (20 678) 654 (19 024) 35% 658 Total operating expense (12 366) Exhibit No. 103 Case No. UWI-04- K. Stockton, Staff 4/06/05 Line No. United Water Idaho Case No. UWI-04- Staff Adjustment to Revenues to Recognize Carriage Hill Revenue Description To Adjust Regulated Revenues Amortize over 5 years Carriage Hill Revenue in Test Year Adjustment Income Tax Effect of Adjustment: Adjustment Total State Income Tax Rate State Income Tax Expense Taxable Federal Income Federal Income Tax Rate Federal Income Tax Expense Total operating income Amount $ 28,138 $ 5 628 $ 5 628 (450) 177 35% $ (1 812) $ 3 365 Exhibit No. Case No. UWI-04- K. Stockton, Staff 4/06/05 United Water Idaho CASE UWI-04-4 Accumulated Deferred Federal Income Taxes Balance at July 31 , 2004 and Staff Pro Forma Adjustment Balance at July Staff Pro Forma Line No.Account & Description , 2004 Balance 282001 Accumulated Deferred FIT ACRS 901,480 282002 Accumulated Deferred FIT MACRS 727 567 282010 Deferred FIT ADR 425,492 283300 Deferred FIT (798 893) 283991 Deferred FIT AFUDC Equity 555 087 253108 Deferred Advances and Contributions Gross UP 333 656 Deferred Federal FIT at July 31 , 2004 144 389 Staff Pro Forma Tax Depreciation 545,339 Staff Pro Forma Book Depreciation (per Staff witness Harms)895 970 Excess Tax Over Book Depreciation 649 369 Federal Income Tax Rate 35.00% Incremental Deferred Federal Income Tax 377 279 Staff Total Deferred FIT (Line 7plus line 12)521 668 Company Total Deferred FIT as of July 31 , 2004 144 389 Staff Accumulated Deferred Federal Income Tax Adjustment 377 279 To Harms Staff Exhibit 111 , Column B, Line 7 Exhibit No.1 05 Case No. UWI - W -04- K. Stockton, Staff 4/06/05 United Water Idaho Case No UWI-04-4 Pre-1971 Investment Tax Credits Staff Pro Forma Balance (1)(2)(3)(4)(5)(6)(5)(6)(7) Book Balance Company Staff Pro Staff Pro at July 31,Annual Ten Months Balance at Forma Forma Line No Year Book Life 2004 Expense Expense , 2005 ustment Balance 1962 50 Years 364 182 152 212 152 364 1963 50 Years 131 134 112 019 112 131 1964 50 Years 905 823 905 1965 50 Years 841 176 147 694 147 841 1966 50 Years 540 136 113 1 ,427 113 540 1967 50 Years 554 124 103 1,451 103 554 1968 50 Years 3,468 258 215 253 215 468 1969 50 Years 525 176 147 378 147 525 328 1285 071 257 071 328 Pre-1971 Investment Tax Credits Company Test Year usted 328 Company ustment 071 Company Pro Forma Year May 31 2005 (13,257) Staff ustment 071 Staff Pro Forma Balance (14 328t Total Deferred Investment Tax Credits 2004 Amortization Expense 48,445 Company ustment 1 ,285 Company Pro Forma Year May 31 2005 47,160 Staff ustment 285 Staff Pro Forma Amount 48,445 Company Pro Forma Amount transfers to Staff Exhibit 107, Column A, Line 11. Staff Pro Forma Amount transfers to Staff Exhibit 107, Column B, Line 11. Exhibit No. 106 Case No. UWI-04- K. Stockton, Staff 4/06/05 Case No. UWI-W-O4-O4 Staff Computation of State and Federal Income Taxes To Recognize Interest Syncronization & Depreciation (A)(B) Company With Staff Calculation Adjustments OPERATING INCOME BEFORE INCOME TAXES 535 538 344,478 LESS: TAX DEDUCTIONS Interest Expense (A)475 409 289 797 Excess Tax Over Book Depreciation (B)261 649 369 TOTAL TAX DEDUCTIONS 12 736 901 13939 166 Taxable Income-State 798 637 594 688) State Income Tax at 8%303 891 127 575) Federal Taxable Income (L.1-L.7)10756238 8 182 256 Federal Income Tax at 35%764 683 863 790 Less: Production Credit (87 501) Less: Amortization of ITC 160) NET FEDERAL INCOME TAX EXPENSE 717.523 727. (A) CALCULATION OF INTEREST EXPENSE DEDUCTION: Pro Forma Rate Base 140 062 546 124 524,407 Debt Percentage of Capitalization 55.060%53.41% Debt Portion of Rate Base 77 118 438 66 508 486 Debt Rate 10%6.45% INTEREST EXPENSE 5475409 4 289 797 (B) EXCESS TAX OVER BOOK DEPRECIATION: Pro Forma Tax Depreciation 648 001 545 339 Pro Forma Book Depreciation 386 509 895 970 EXCESS TAX OVER BOOK DEPRECIATION 7261 492 9 649 369 Exhibit No. Case No. UWI-04- K. Stockton, Staff 4/06/05 CERTIFICATE OF SERVICE HEREBY CERTIFY THAT I HAVE THIS 6Th DAY OF APRIL 2005 SERVED THE FOREGOING DIRECT TESTIMONY OF KATHY STOCKTON, IN CASE NO. UWI-04-, BY MAILING A COpy THEREOF POSTAGE PREPAID TO THE FOLLOWING: MARK GENNARI UNITED WATER 200 OLD HOOK RD HARRINGTON PARK NJ 07640 DEAN J MILLER ES McDEVITT & MILLER LLP PO BOX 2564 BOISE ill 83701 DOUGLAS K STRICKLING BOISE CITY ATTORNEY'S OFFICE 150 N CAPITOL BLVD. PO BOX 500 BOISE ill 83701 CHUCK MICKELSON CITY OF BOISE 150 N CAPITOL BLVD. PO BOX 500 BOISE ID 83701 WILLIAM M. EDDIE ADVOCATES FOR THE WEST PO BOX 1612 BOISE ill 83701 BILL SEDIVY ill AH 0 RIVERS UNITED PO BOX 633 BOISE ill 83701 BRAD M. PURDY ATTORNEY AT LAW 2019 N 17TH STREET BOISE ill 83702 SHARON ULLMAN 9627 W. DESERT AVE BOISE ill 83709 SCOTT L. CAMPBELL 10'1 S CAPITOL BLVD., 10TH FLOOR PO BOX 829 BOISE ID 83701 Jo . JoY'.'-.. SECRETARY --- CERTIFICATE OF SERVICE