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Home My WebLink About20110803Herbert Di, Exhibits.pdfDean J. Miller (ISB 1968) McDEVITT & MILLER LLP 420 West Bannock Street P.O. Box 2564-83701 Boise, ID 83702 Tel: 208.343.7500 Fax: 208.336.6912 joe(âmcdevitt -miler. com Attorneys for Applicant Q ~ ('i: i ') 1: D.f ",:"".,..,~",' t"..! V t. tc ZO!! -3 PM 1= 52 () BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION Case No. UWI-W-11-02 IF UNITED WATER IDAHO INC, FOR AUTHORITY TO INCREASE ITS RATES AND CHANGES FOR WATER SERVICE IN THE STATE OF IDAHO BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION DIRECT TESTIMONY OF PAUL R. HERBERT CONCERNING REVENUE UNDER PRESENT AND PROPOSED RATES COST OF SERVICE ALLOCATION AND CUSTOMER RATE DESIGN 1 Q.Please state your name and address. 2 A.My name is Paul R. Herbert. My business address is 207 Senate Avenue, 3 Camp Hill, Pennsylvania. 4 Q.By whom are you employed? 5 A.i am employed by Gannett Fleming, Inc. 6 Q.Please describe your position with Gannett Fleming, Inc., and briefly 7 state your general duties and responsibilties. 8 A.i am President of the Valuation and Rate Division. My duties and 9 responsibilties include the preparation of accounting and financial data for 10 revenue requirement and cash working capital claims, the allocation of cost 11 of service to customer classifications, and the design of customer rates in 12 support of public utilty rate filngs. 13 Q.Have you presented testimony in rate proceedings before a regulatory 14 agency? 15 A.Yes. I have testified before the Pennsylvania Public Utility Commission, the 16 New Jersey Board of Public Utilties, the Public Utilties Commission of Ohio, 17 the Public Service Commission of 1st Virginia, the Kentucky Public Service , 18 Commission, the Iowa State Utilities Board, the Virginia State Corporation 19 Commission, the Missouri Public Service Commission, the New Mexico 20 Public Regulation Commission, the Public Utilties Commission of the State 21 of California, the Illnois Commerce Commission, the Delaware Public 22 Service Commission, the Arizona Corporation Commission, the Connecticut 23 Department of Public Utility Control, and the Tennessee Regulatory 24 Authority, concerning revenue requirements, cost of service allocation, rate Herbert, Di 1 United Water Idaho Inc. 1 design and cash working capital claims. A list of cases in which I have 2 testified is attached to my testimony. 3 Q.What is your educational background? 4 A.I have a Bachelor of Science Degree in Finance from the Pennsylvania State 5 University, University Park, Pennsylvania. 6 Q.Would you please describe your professional affilations? 7 A.I am a member of the American Water Works Association and served as a 8 member of the Management Committee for the Pennsylvania Section. i am 9 also a member of the Pennsylvania Municipal Authorities Association. In 10 1998, i became a member of the National Association of Water Companies 11 as II as a member of its Rates and Revenue Committee. 12 Q.Briefly describe your work experience. 13 A.I joined the Valuation Division of Gannett Fleming Corddry and Carpenter, 14 Inc., predecessor to Gannett Fleming, Inc., in September 1977, as a Junior 15 Rate Analyst. Since then, I advanced through several positions and was 16 assigned the position of Manager of Rate Studies on July 1, 1990. On June 17 1, 1994, I was promoted to Vice President and Senior Vice President in 18 November 2003. On July 1, 2007, I was promoted to my current position as 19 President of the Valuation and Rate Division. 20 While attending Penn State, i was employed during the summers of 21 1972, 1973 and 1974 by the United Telephone System - Eastern Group in its 22 accounting department. Upon graduation from college in 1975, i was Herbert, Di 2 United Water Idaho Inc. 1 employed by Herbert Associates, Inc., Consulting Engineers (now Herbert 2 Rowland and Grubic, Inc.), as a field office manager until September 1977. 3 Q.What is the purpose of your testimony in this proceeding? 4 A.My testimony is in support of the proof of revenue under present and 5 proposed rates, and cost of service allocation and rate design study under 6 my direction and supervision for United Water Idaho Inc. (the "Company"). 7 Q.Have you prepared exhibits presenting the results of your study? 8 A.Yes. Exhibit No. 5 presents the proof of revenue including the application of 9 present and proposed rates to consumption analysis for the twelve months 10 ended April 30, 2011 and pro forma revenue under present and proposed 11 rates, including adjustments to revenue. Exhibit No. 6 presents the results 12 of the allocation of pro. forma cost of service as of April 30, 2011, and the 13 proposed rate design. 14 15 PROOF OF REVENUE - EXHIBIT NO.5 16 Q.Have you prepared proof of revenue schedules under present and 17 proposed rates? 18 A.Yes. Schedules 1 through 7 in Exhibit 5 set forth the proof of revenues from 19 the application of present and proposed rates to the customer consumption 20 analysis. Pages 1 through 3 provide an explanation of the schedules. 21 Q.Did you prepare the adjustments as shown in Schedules 4 through 22 Schedule 4C of Exhibit 5? Herbert, Oi 3 United Water Idaho Inc. 1 A.Yes. The biling determinants associated with three revenue adjustments 2 are summarized in Schedule 4. The revenues are calculated for the three 3 adjustments in Schedules 4A, 4B, and 4C. Adjustment R1 adjusts revenues 4 by annualizing for the gain or loss of customers during the test year ended 5 April 30, 2011. Adjustment R2 adjusts revenues for the projected number of 6 customers through February 28, 2012. Adjustment R3 adjusts revenues due 7 to the projected decline in customer usage for residential and commercial 8 customers. 9 Q.How did you determine the projected decline in customer usage for 10 residential customers? 11 A.Using billed consumption records from January 2001 through December 12 2010, our analysis of residential water usage proceeded in three main steps. 13 Step one was to determine the level of baseline indoor usage, which is not 14 sensitive to weather variations. Step two examines seasonal irrigation 15 usage and determines its relationship to weather variations and its trend 16 over time. Step three combines the projected indoor usage with projected 17 irrigation usage to yield projected total consumption per residential customer. 18 Q.Please detail your steps 1 through 3. 19 In Step 1, i examined the month to month variation in billed consumption for 20 the last five-year period. i determined that the biled consumption per 21 customer data for December through April consistently remained well below 22 the other months' values. Also, the values across years for each month fell 23 in a much tighter cluster than values for the other months (suggesting Herbert, Oi 4 United Water Idaho Inc. 1 invariance to weather conditions). I reasoned that data for these months 2 could therefore be used as representative of an indoor rate of consumption. 3 That is, the consumption for those winter months did not contain a significant 4 outdoor use component that is dependent on variations in weather. It 5 should be noted that the values for each month reflect a lag in billng due to 6 bi-monthly billng and thus roughly represent consumption spanning late 7 October through March. I annualized this winter consumption in Schedule 6 8 of Exhibit NO.5, by multiplying the gallons per customer per day (column 3) 9 by 365 to yield an estimate of the total indoor usage per customer per year 10 (column 4). I used linear regression to fit a trend line of this resulting annual 11 indoor consumption (column 5). The resulting trend equation showed a very 12 good fit, with an adjusted R-squared of 0.855. This value can be interpreted 13 as the percentage of the year to year variation in indoor consumption that 14 can be explained as a trend over time. The associated F-statistic with this 15 R-squared indicates that the trend line fits the data to a significance level that 16 is below one one-hundredth of one percent (less than 0.01 %). The slope of 17 the resulting trendline is -1,681, meaning that annual indoor use is projected 18 to decline by 1,681 gallons per customer per year, or about 2.25 ccf. 19 In Step 2, I calculated the irrigation use as the difference between 20 total billed consumption per customer per year and the annualized winter 21 (i.e., indoor) usage. i performed a regression analysistòfifthe iiÎ'gafiOn 22 consumption to year and to a weather variable, the Palmer Z index for the 23 Boise area. This index is a short-term (monthly) measure of soil moisture. I Herbert, Oi 5 United Water Idaho Inc. 1 used the average Z-index for the 7-month period of April through October. 2 The irrigation consumption showed a very good. fit to the year and weather 3 variables, with an adjusted R-squared of 0.911. Like the indoor trendline, 4 this equation had an associated F-statistic that indicates that the equation 5 fits the data to a significance level that is below one one-hundredth of one 6 percent. The test statistics for the coefficients on the year and weather 7 variables were each very strong, with significance levels well below one 8 percent. 9 Using this equation, I fit a trend line of irrigation usage over time by 10 setting the value of the weather variable equal to the 30-year average of the 11 Palmer Z index in column 7 of Schedule 6. The 30 year average is negative 12 0.16, indicating that this level of slight drought has been "normal" for the 13 Boise area for the April-October. The resulting trend line is thus "normalized" 14 for weather. This normalized irrigation trendline has a slope of negative 15 1 ,571, indicating that, for weather held constant, irrigation use is projected to 16 decline by 1,571 gallons per customer per year or 2.10 ccf. 17 In Step 3, I calculated a total consumption trend line as the sum of the 18 indoor and irrigation trend lines in column 9 of Schedule 6. The slope of the 19 resulting total consumption trend line is negative 3,252, indicating that total 20 consumption, normalized for weather, is projected to decline by 3,252 21 gallons per customer per year. (Note that this slope is the sum of théindoor 22 and irrigation slopes.) This annual decline corresponds to a decrease of 23 4.35 ccf per customer per year. Herbert, Oi 6 United Water Idaho Inc. 1 Schedule 7 is a graph of the total biled consumption and estimated 2 consumption lines. The weather-normalized trendline, where the drought 3 index is fixed at the 30-year average, is shown along with the results of fitting 4 the irrigation consumption to the year and to the actual drought index 5 simultaneously (dotted line). The dotted line is included to show the close 6 tracking of this line with actual biled consumption, which demonstrates the 7 high explanatory power of the time and weather variables in the residential 8 . irrigation regression equation. 9 Q.How was the adjustment to usage determined in Schedule 4 for 10 residential customers? 11 A.I took the average projected annual consumption of 153.8 ccf (115,053 12 gallons) per residential customer multiplied it by the number of residential 13 customers in the test year of 73,937 which equals 11,371,472 ccf and 14 subtracted from that the test year residential consumption of 11 ,425,250, 15 resulting in an adjustment of -53,778 ccf. 16 Q.How did you determine the projected decline in customer usage for 17 commercial customers? 18 A.For commercial customers, i began by proceeding with the type of analysis 19 conducted for residential water usage as described above. I calculated a 20 base, indoor usage from winter consumption and calculated an irrigation use 21 as the difference between total biled consumption and indoor consumption. 22 However, when i developed regressions of irrigation use on time and 23 weather, i found that, in contrast to the residential results, the drought index Herbert, Oi 7 United Water Idaho Inc. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Q. 22 variable was not significant in explaining the variation in commercial irrigation consumption, while the year variable showed a weak relationship with irrigation consumption. I reasoned that it makes some sense that commercial seasonal water use is less weather dependent than residential, as such customers may be on fixed schedules for watering and there are other seasonal uses (e.g., car washes, laundries, construction) that are relatively independent of weather. Since the irrigation consumption regression results showed no reason to treat irrigation differently than indoor use, i performed a regression analysis of total biled commercial consumption per customer on year and found the resulting trend line to yield a very good fit to the consumption data, with an adjusted R-squared of 0.761 and an associated F-statistic that indicates that the equation fits the data to a significance level that is below one-tenth of one percent. The resulting trendline slope of negative 18,112 indicates that commercial consumption can be projected to decline by 18,112 gallons per customer per year, which corresponds to declines of 24 ccf per customer per year and 50 gallons per customer per day. This decline represents a 3.5% decrease in commercial consumption from the projected 2011 value to the projected 2012 value. See Schedule 8 and the graph on Schedule 9. Do your commercial irrigation regression results therefore indicate that weather does not affect commercial consumption? Herbert, Oi 8 United Water Idaho Inc. 1 A.Not at alL. The test statistics associated with our regression equations only 2 state that I cannot with confidence reject the hypothesis that weather does 3 not affect commercial irrigation consumption. This is not the same as saying 4 definitively that weather does not affect consumption. In fact, our regression 5 of irrigation on year and weather estimated a coefficient on the weather 6 variable of negative 12,651. The p-value on this coefficient was 20.3% (for a 7 two-tailed test, i.e., a test that weather has neither positive nor negative 8 effect). This p-value means that, if weather indeed truly has no effect, then 9 the chance of seeing the irrigation usage that was measured for the past ten 10 years is approximately 20 percent. Considering that I could rule out weather 11 having a positive effect, then the p-value could be halved, to approximately 12 1 0 percent. Because analysts typically use a threshold of 5 percent or lower 13 for a p-value, I could not reject the hypothesis that weather has no effect. 14 Q.How was the adjustment to usage determined in Schedule 4 for 15 commercial customers? 16 A.i took the average projected annual consumption of 665.3 ccf per 17 commercial customer multiplied it by the number of commercial customers in 18 the test year of 8,906 which equals 5,924,829 ccf and subtracted from that 19 the test year residential consumption of 6,074,546, resulting in a in an 20 adjustment of -149,717 ccf. 21 Q.Please explain your choice of the Palmer Z index to measure weather 22 conditions. Herbert, Oi 9 United Water Idaho Inc. 1 A.The National Climatic Data Center of the National Oceanic and Atmospheric 2 Administration (NOAA) compiles various indices to measure drought for 3 each climatic district in the United States. The various Palmer indices use 4 temperature data in estimating evapotranspiration combined with 5 precipitation data in equations designed to measure the level of drought (soil 6 moisture levels) existing in the given month. The Z index, also referred to as 7 the "moisture anomaly index", is calibrated such that 0.00 is neutral while 8 negative represents relatively low soil moisture (drought). For example, the 9 April-October average index for 2002, the third driest year on record in terms 10 of precipitation, is -2.07. An alternative index, the Palmer Drought Severity 11 Index (PDSI) is a measure of long-term drought conditions that is sometimes 12 used in fitting water demand. The PDSI includes the Z index in its 13 intermediate calculations. i reasoned that the Palmer Z index had fewer of 14 the shortcomings sometimes attributed to the Drought Severity Index and 15 also that domestic watering would be dependent on immediate temperature 16 and precipitation conditions that would be adequately captured by an index 17 oriented to short term (monthly) measures, as the Z-index does. Moreover, I 18 ran the regression with the PDSI in place of the Z-index, and found the Z 19 index to yield a better fit as measured by R-squared. 20 Q.What is the significance of the findings of your consumption 21 projections? 22 A.The past ten years of billng data shows a pronounced declining trend in 23 consumption, particularly when controllng for varying weather conditions. Herbert, Oi 10 United Water Idaho Inc. 1 This trend is to be expected in light of measures aimed to reduce water 2 demand, such as the federal energy standards for household fixtures and 3 appliances, United Water Idaho's programs to promote water conservation, 4 and the requirement that new developments connect to non-potable 5 irrigation water sources if they are available. The trend is being experienced 6 and studied in water systems across the country. Because the fixtures and 7 appliances are gradually and continually being replaced, federal standards 8 are being tightened, consumer awareness continues to grow, and new 9 developments continue to be added, this trend of decreasing usage can be 10 expected to continue. 11 While a decline of 3,252 gallons per residential customer per year 12 (8.9 gallons per day) appears large, it is well within reason. It is true that 13 studies for water companies in the eastern and midwestern U.S. are also 14 finding a declining use, just not to this extent, but they do not serve as a 15 good basis for comparison because usage in these areas is much lower due 16 largely to the lower use for outdoor watering. Available study data for arid 17 areas includes Phoenix, where annual residential water use per customer 18 declined by nearly 20,000 gallons (averaging a 5,000 gallon decline each 19 year) from 2002-2006, a decrease of over 2.8 percent per year. It also 20 helps to put the decline in the context of potential reductions in a 21 hypothetical household. For example, for a household that flushes the toilet 22 10 times per day, replacing the old standard 3.5 gallons per flush toilet with Herbert, Oi 11 United Water Idaho Inc. 1 the current 1.6 gallons per flush model would reduce the household's water 2 consumption by 19 gallons per day. 3 It is crucial to United Water Idaho to be forward rather than backward 4 looking in estimating its expected water consumption levels in order to insure 5 that rates are set properly for a sufficient revenue stream. That is, the 6 Company needs to account for these declining trends, rather than apply 7 rates that are based on consumption from previous years as if such 8 consumption levels wil continue to hold true. 9 Q.Could it be argued that consumption is declining over time due to 10 economic conditions? 11 A.One of the reasons for using data back to 2001 is to incorporate a variety of 12 economic conditions. The decline is also evident for the period before the 13 economic downturn began in 2008. That is, water use per customer was on 14 a declining trend even when the economy was growing. This is also the 15 case in 2010, when the Idaho gross domestic product grew at an inflation- 16 adjusted rate of two percent while water use per customer continued its 17 decline. 18 Q.Would a five-year average be a reasonable basis to insure sufficient 19 revenue for the Company, considering that it incorporates the low 20 usage of the immediately preceding two wet years (2009 and 2010)? 21 A.There would be several shortcomings to this approach. The first is with 22 respect to the weather-invariant components of demand. Indoor residential 23 consumption is not dependent on these weather variations, yet shows a Herbert, Oi 12 United Water Idaho Inc. 1 pronounced declining trend. See my previous statement about the very 2 strong regression results fitting a time trend to this data. Likewise, 3 commercial consumption shows an unmistakable downward trend over time. 4 With a downward time trend, the five-year (or any fixed length) average over 5 the previous period wil be higher than the average in the subsequent years. 6 The other shortcoming is related to the weather patterns over the past 7 five years. While the two recent years were "wetter" (had a lower drought 8 index) than average, 2007 was the tenth driest (in precipitation) year on 9 record. The average drought index for the five years from 2006-2010 was - 10 0.25, which in fact is lower than the long-term average used in our equations 11 (-0.16). That is, the average consumption for the period reflects what is, on 12 average, a drier period of weather than is "normal". Even if there weren't 13 the declining time trend noted and discussed previously, the five year 14 average would overestimate expected future consumption due to it drawing 15 from a drier period than normaL. 16 Schedule 7 introduced above in the discussion of the residential 17 consumption analysis, includes a flat line (dashed) at 128,887 gallons per 18 year, representing the five-year average consumption for the period 2006- 19 2010. The schedule displays the growing divergence of projected future 20 consumption from this five-year average consumption line as one moves 21 along the future trendline. Use of the five-year average consumption of 22 128,887 rather than the projected use of 115,053 gallons per customer Herbert, Oi 13 United Water Idaho Inc. 1 would grossly overstate the revenues to be generated for the period when 2 new rates wil be effective from this rate case. 3 Q.What other evidence can you provide that shows that the use of a five- 4 year average is inappropriate? 5 A.In the Company's last rate case at Case No. UWI-W-009-01, Exhibit No. 12, 6 Schedule 4 shows the residential usage per bil based on a five-year 7 average at 28.83 ccf. This equates to an annual level of 172.98 ccf or 8 129,389 gallons per year. This level is 10.9% higher than the 2010 average 9 usage and 12.5% higher than the projected usage of 115,053. 10 For commercial customers, the five-year average from the last case 11 was 124.46 ccf per bil or 746.76 ccf annually or 558,576 gallons per year. 12 This level is 8.6% higher than the 2010 average usage and 12.3% higher 13 than the projected usage of 497,614. 14 Stated quite simply, the Company cannot continue to use a multi- 15 year average usage to determine the appropriate level of rates. To do so will 16 continue to erode the Company's revenue levels and its allowed rate of 17 return. 18 Q.What are the Company's options if it is required to continue to use 19 outdated consumption data to set rates? 20 A.In my opinion, if the Company continues to be required to use multi-year 21 average usage data to set rates, they should explore alternative methods to 22 propose revenue reconciliation or decoupling mechanisms in order to ensure 23 its revenue stream and avoid the erosion of their rate of return. Herbert,Oi 14 United Water Idaho Inc. 1 COST OF SERVICE ALLOCATION 2 Q.Briefly describe the purpose of your cost allocation study. 3 A.The purpose of the study was to allocate the total cost of service, which is 4 the total revenue requirement, to the several customer classifications. In the 5 study, the total costs Ire allocated to the residential, commercial, public 6 authority, and private and public fire protection classifications in accordance 7 with generally accepted principles and procedures. The cost of service 8 allocation results in indications of the relative cost responsibilities of each 9 class of customers. The allocated cost of service is one of several criteria 10 appropriate for consideration in designing customer rates to produce the 11 required revenues. 12 Q.Have you prepared an exhibit presenting the results of your studies? 13 A.Yes. The results of my allocation of the pro forma cost of service as of April 14 30, 2011, and proposed customer rates to produce the pro forma revenue 15 requirement as of that date are presented in Exhibit NO.6. 16 Q.Please describe the method of cost allocation that was used in your 17 study. 18 A.The base-extra capacity method, as described in the 2000 and prior editions 19 of the Water Rates Manual published by the American Water Works 20 Association (AWWA), was used to allocate the pro forma costs. It is a 21 recognized method for allocating the cost of providing water service to 22 customer classifications in proportion to each classification1s use of the 23 commodity, facilties, and services. It is generally accepted as a sound Herbert, Oi 15 United Water Idaho Inc. 1 2 3 Q. 4 A. 5 Q. 6 A. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 method for allocating the cost of water service and was the method that was used by the Company in the Company's prior rate cases. Is the method described in Exhibit No.6? Yes. It is described on pages 1-3 ofthe exhibit. Please describe the procedure followed in the cost allocation study. Each identified classification of cost in the pro forma cost of service was allocated to the customer classifications through the use of appropriate allocation factors. This allocation is presented in Schedule B, page 10f 6 through page 6 of 6 in Exhibit NO.6. The items of cost, which include operation and maintenance expenses, depreciation expense, taxes and income available for return, are identified in column 1 of Schedule B. The cost of each item, shown in column 3, is allocated to the several customer classifications based on allocation factors referenced in column 2. The development of the allocation factors is presented in Schedule C of the exhibit. i wil use some of the larger cost items to ilustrate the principles and considerations used in the cost allocation methodology. Purchased water, purchased electric power and treatment chemicals are examples of costs that tend to vary with the amount of water consumed and are thus considered base costs. They are allocated to the several customer classifications in direct proportion to the average daily consumption of those classifications through the use of Factor 1. The development of Factor 1 is shown in Schedule C on page 1 of 21 in Exhibit NO.6. Herbert,Oi 16 United Water Idaho Inc. 1 Other source of supply, water treatment and transmission costs are 2 associated with meeting usage requirements in excess of the average, 3 generally to meet maximum day requirements. Costs of this nature were 4 allocated to customer classifications partially as base costs, proportional to 5 average daily consumption, partially as maximum day extra capacity costs, 6 in proportion to maximum day extra capacity, and, in the case of certain 7 pumping stations and transmission mains, partially as fire protection costs, 8 through the use of Factors 2 and 3. The development of the allocation 9 factors, referenced as Factors 2 and 3, is shown in Schedule C, on pages 1- 10 4 of 21 in Exhibit NO.6. 11 Costs associated with storage facilties and the capital costs of 12 distribution mains were allocated partly on the basis of average consumption 13 and partly on the basis of maximum hour extra demand, including the 14 demand for fire protection service, because these facilties are designed to 15 meet maximum hour and fire demand requirements. The development of 16 the factors, referenced as Factors 4 and 5, used for these allocations is 17 shown in Schedule C, on pages 5-8 of 21 in Exhibit NO.6. Fire demand 18 costs were allocated to public and private fire protection service and general 19 service in proportion to the relative potential demands on the system by 20 hydrants, fire services, and commercial service lines sized to provide both 21 fire protection and general service, as presented on Schedule E, page 1 of 1 22 in Exhibit NO.6. Herbert, Oi 17 United Water Idaho Inc. 1 Costs associated with the operation and maintenance of mains were 2 allocated on combined bases of maximum day and maximum hour extra 3 capacity because these facilties serve both functions. The relative 4 weightings of Factor 3 (maximum day) and Factor 4 (maximum hour) for the 5 operation and maintenance of mains were based on footage of mains, 6 serving maximum day and maximum hour functions. The development of 7 these weighted factors, referenced as Factor 6, is presented on Schedule C, 8 page 9 of 21 in Exhibit NO.6. 9 Costs associated with meters and service line facilties were allocated 10 to customer classifications in proportion to the capital costs of the sizes and 11 quantities of meters and services serving each classification. The 12 development of factors for meters and services, referenced as Factor 8 and 13 Factor 9, is presented on Schedule C, pages 10-13 of 21 C in Exhibit NO.6. 14 Costs for customer accounting, billng and collecting were allocated 15 on the basis of the number of customers for each classification, and costs 16 for meter reading were allocated on the basis of metered customers. The 17 development of these factors, referenced as Factor 12 and Factor 13, is 18 presented on Schedule C, pages 15 of 21 in Exhibit NO.6. 19 Administrative and general costs were allocated on the basis of 20 allocated direct costs excluding those costs, such as purchased water, 21 power, and chemicals which require little administrative and general 22 expense. The development of factors for this allocation, referenced as 23 Factor 14, is presented on Schedule C, page 16 of 21 in Exhibit NO.6. Herbert, Oi 18 United Water Idaho Inc. 1 Annual depreciation accruals were allocated on the basis of the 2 function of the facilties represented by the depreciation expense for each 3 depreciable plant account. The original cost less depreciation of utility plant 4 in service was similarly allocated for the purpose of developing factors, 5 referenced as Factor 18, for allocating items such as income taxes and 6 return. The development of Factor 18 is presented on Schedule C, pages 7 18-20 in Exhibit NO.6. 8 a.What was the source of the total cost of service data set forth in 9 column 3 of Schedule B of Exhibit NO.6? 10 A.The pro forma costs of service were furnished by the Company and are set 11 forth in Exhibit No. 10 12 a.Refer to Schedule C, pages 2 through 6 of 21 of Exhibit No.6, and 13 explain the source of the system maximum day and maximum hour 14 ratios used in the development of factors referenced as Factors 2, 3 15 and 4. 16 A.The ratios were based on a review of experienced Company data for 2001 17 through 2009 as shown on Schedule D on Exhibit NO.6. The maximum day 18 ratio of 2.3 times the average day approximates the ratio of maximum daily 19 send-out experienced by the Company in 2005. The system maximum hour 20 ratio of 3.6 times the average hour was based the ratio of maximum hourly 21 send-out also experienced by the Company in 2005. Herbert,Oi 19 United Water Idaho Inc. 1 a.What factors were considered in estimating the maximum day extra 2 capacity and maximum hour extra capacity demands used for the 3 customer classifications in the development of Factors 2, 3 and 4? 4 A.The estimated demands were based on judgment which considered the 5 system maximum day and hour ratios, field observations of the service areas 6 . of the Company, and generally-accepted customer class maximum day and 7 maximum hour diversity factors. 8 a.Please describe the reallocation of public fire costs. 9 A.The cost of service study reallocates the public fire protection costs to the 10 residential, commercial, and public authority classifications since the 11 Company does not charge for public fire protection through public fire 12 hydrant rates. The public fire costs should be recovered in the other 13 classes' fixed charges. 14 a.How did you reallocate the cost of public fire service? 15 A.Based on the fact that these costs are fixed and should be recovered in fixed 16 charges, i allocated the public fire costs using Factor 20, which is based on 17 the meter equivalents of the residential, commercial and public authority 18 classifications. 19 a.Have you summarized the results of your cost allocation study? 20 A.Yes. The results are summarized in columns 1, 2 and 3 of Schedule A, 21 page 1 of 1 of Exhibit NO.6. Column 2 sets forth the total allocated pro 22 forma cost of service as of April 30, 2011 for each customer classification Herbert, Oi 20 United Water Idaho Inc. 1 identified in column 1. Column 3. presents each customer classification1s 2 cost responsibility as a percent of the total cost. 3 a.Have you compared these cost responsibilties with the proportionate 4 revenue under existing rates for each customer classification? 5 A.Yes. A comparison of the allocated cost responsibilities and the percentage 6 revenue under existing rates can be made by comparing columns 3 and 5 of 7 Schedule A of Exhibit 6. A similar comparison of the percentage cost 8 responsibilties (relative cost of service) and the percentage of pro forma 9 revenues (relative revenues) under proposed rates can be made by 10 comparing columns 3 and 7 of Schedule A of Exhibit NO.6. 11 12 CUSTOMER RATE DESIGN 13 Q.What are the appropriate factors to be considered in the design of the 14 rate structure? 15 A.In preparing a rate structure, one should consider the allocated costs of 16 service, the impact of radical changes from the present rate structure, the 17 understandability and ease of application of the rate structure, community 18 and social influences, and the value of service. General guidelines should 19 be developed with management to determine the extent to which each of 20 these criteria is to be incorporated in the rate structure to be designed, 21 inasmuch as the pricing of a commodity or service is a function of 22 management. 23 a.Did management provide rate design guidelines to you? Herbert, Oi 21 United Water Idaho Inc. 1 A.Yes, it did. The guidelines included (1) increase customer charges to be 2 more in line with customer costs, (2) develop private fire rates to recover the 3 cost of providing private fire service, and (3) increase rates by customer 4 classification in a manner that moves the revenues recovered from each 5 classification toward the indicated cost of service. 6 Q.Do the proposed rates comply with these guidelines? 7 A.Yes, they do. 8 Q.Please describe the rate structure. 9 A.The existing rate structure consist~ of monthly customer charges, which vary 10 by meter size, and consumption charges based on a 2-block inclining rate 11 structure in the summer and one block structure for consumption in the 12 winter. The proposed rate structure continues to include customer charges 13 by meter size (with proposed increases as described later in my testimony) 14 and the same winter uniform consumption rate and inclining block rates in 15 the summer. 16 Q.Please explain the increases in the customer charges. 17 A.The existing customer charges for residential, commercial, and public 18 classes are well-below cost of service. The proposed 5/8-inch and %-inch 19 customer charges reflect an approximate 28.2% increase over the existing 20 base rate customer charges with similar or larger increase for the larger- 21 sized meters. 22 The increase to the bi-monthly 5/8-inch and %-inch customer charges 23 is from $18.10 to $23.20. This increase continues the movement toward the Herbert, Oi 22 United Water Idaho Inc. 1 indicated cost of service for a 5/8-inch meter of $26.00 on a bi-monthly 2 basis. The customer cost analysis includes the cost of Public Fire Service of 3 $1.48 per bi-monthly bil as discussed earlier in my testimony. The 4 calculation of customer costs is shown on Schedule F of Exhibit NO.6. 5 Q.What are the appropriate costs to include in a customer charge? 6 A.According to the AWWA Water Rates Manual, M1, a properly designed 7 customer charge should recover the operation and maintenance expenses 8 associated with meters and service lines as well as the depreciation expense 9 and return and taxes related to meters and service line investment. It should 10 also recover the cost of meter reading and billng and collecting costs 11 associated with rendering a customer bil. These costs are all customer- 12 related and do not vary with the level of consumption, only with the size of 13 the meter and service line. 14 Also, as mentioned earlier, the customer charge should recover the 15 cost of public fire protection since these costs are not recovered through 16 public fire hydrant rates and are also fixed costs that do not vary with usage. 17 Refer to Schedule F for the detailed calculation of customer costs. 18 Q.Does the AWWA Water Rates Manual support the recovery of public fire 19 protection costs through fixed charges? 20 A.Yes, it does. Chapter 30, page 227 of the manual discusses the alternative 21 methods for direct charges to recover public fire costs where there are no 22 public fire hydrant charges. It states as follows: 23 An alternative direct-charge mechanism is a fixed 24 charge that is unrelated to water use included on the water Herbert, Oi 23 United Water Idaho Inc. 1 bil. . . . One alternative is to charge each customer a fixed 2 amount. While easy to administer, this method does not 3 recognize any differences in the level of fire protection 4 provided. . . another option is billng based on equivalent 5 meters, where it is assumed that customers with larger 6 meters have larger properties to protect. 7 8 In the customer charge analysis provided in Schedule F, I used the 9 equivalent meters method to develop public fire charges for each meter size 10 to be included in the customer charge. 11 Q.Why is it important to set sufficient and appropriate customer charges? 12 A.Customer costs are fixed costs that do not vary with customer usage. If 13 such costs are not recovered in customer charges, then the only place for 14 recovery is in the consumption charges. With the Company facing declining 15 use as demonstrated in my testimony and exhibits, the Company will 16 continue to under-recover fixed costs and erode their allowed rate of return. 17 Q.What changes are you proposing to Private Fire Protection rates? 18 A.The existing private fire protection rates generate revenues well below the 19 cost of service. The proposed rates for private fire protection are increased 20 by 30% to move the Private Fire Protection class closer to cost of service. 21 a.What are the proposed consumption rates? 22 A.The existing consumption rates are increased 16.2% and maintain the same 23 rate blocks and the 25% differential between the first and second block rates 24 for summer usage. 25 Q.Do the proposed rates result in movement toward the cost of service 26 for each classification? Herbert, Oi 24 United Water Idaho Inc. 1 A.Yes, as Schedule A, page 1 of 1, in Exhibit No. 6 demonstrates, the 2 revenues under proposed rates are better aligned with the cost of service by 3 classification than the revenues under present rates. 4 Q.Have you prepared comparisons of present and proposed rates for 5 . each classification? 6 A.Yes. Schedule G of Exhibit NO.6 presents comparisons of the present and 7 proposed rate schedules. 8 Q.Have you prepared proof of revenue schedules under present and 9 proposed rates? 10 A.i have provided proof of revenues from the application of present and 11 proposed rates to the bil analysis in Exhibit NO.5. 12 Q.Does this complete your testimony at this time? 13 A.Yes, it does. Herbert, Oi 25 United Water Idaho Inc. Year Jurisdiction Docket No.Client/Utility Subject 1.1983 Pa. PUC R-832399 T. W. Phillps Gas and Oil Co.Pro Forma Revenues 2.1989 Pa. PUC R-891208 Pennsylvania-American Water Company Bil Analysis and Rate Application 3.1991 PSC ofW. Va.91-106-W-MA Clarksburg Water Board Revenue Requirements (Rule 42) 4.1992 Pa. PUC R-922276 North Penn Gas Company Cash Working Capital 5.1992 NJBPU WR92050532J The Atlantic City Sewerage Company Cost Allocation and Rate Design 6.1994 Pa. PUC R-943053 The York Water Company Cost Allocation and Rate Design 7.1994 Pa. PUC R-943124 City of Bethlehem Revenue Requirements, Cost Allocation, Rate Design and Cash Working Capital 8.1994 Pa. PUC R-943177 Roaring Creek Water Company Cash Working Capital 9.1994 Pa. PUC R-943245 North Penn Gas Company Cash Working Capital 10.1994 NJBPU WR94070325 The Atlantic City Sewerage Company Cost Allocation and Rate Design 11.1995 Pa. PUC R-953300 Citizens Utilities Water Company of Cost Allocation and Rate Design Pennsylvania 12.1995 Pa. PUC R-953378 Apollo Gas Company Revenue Requirements and Rate Design 13.1995 Pa. PUC R-953379 Carnegie Natural Gas Company Revenue Requirements and Aate Design 14.1996 Pa. PUC R-963619 The York Water Company Cost Allocation and Rate Design 15.1997 Pa. PUC R-973972 Consumers Pennsylvania Water Company -Cash Working Capital Shenango Valley Division 16.1998 Ohio PUC 98-178-WS-AIR Citizens Utilties Company of Ohio Water and Wastewater Cost Allocation and Rate Design 17.1998 Pa. PUC R-984375 City of Bethlehem - Bureau of Water Revenue Requirement, Cost Allocation and Rate Design 18.1999 Pa. PUC R-994605 The York Water Company Cost Allocation and Rate Design 19.1999 Pa. PUC R-994868 Philadelphia Suburban Water Company Cost Allocation and Rate Design 20.1999 PSC of W.Va. 99-1570-W-MA Clarksburg Water Board Revenue Requirements (Rule 42), Cost Allocation and Rate Design 21.2000 Ky. PSC 2000-120 Kentucky-American Water Company Cost Allocation and Rate Design 22.2000 Pa. PUC R-00005277 PPL Gas Utilities Cash Working Capital 23.2000 NJBPU WROO080575 Atlantic City Sewerage Company Cost Allocation and Rate Design 24.2001 la. St Uti I Bd RPU-01-4 Iowa-American Water Company Cost Allocation and Rate Design 25.2001 Va. St. Corp PUE010312 Virginia-American Water Company Cost Allocation and Rate Design 26.2001 WVPSC 01-0326-W-42T West-Virginia American Water Company Cost Allocation And Rate Design 27.2001 Pa. PUC R-016114 City of Lancaster Tapping Fee Study 28.2001 Pa. PUC R-016236 The York Water Company Cost Allocation and Rate Design 29.2001 Pa.PUC R-016339 Pennsylvania-American Water Company Cost Allocation and Rate Design 30.2001 Pa. PUC R-016750 Philadelphia Suburban Water Company Cost Allocation and Rate Design 31.2002 . Va. St. Corp Cm PUE-2002-00375 Virginia-American Water Company Cost Allocation and Rate Design 32.2003 Pa. PUC R-027975 The York Water Company Cost Allocation and Rate Design 33.2003 Tn Reg. Auth 03-Tennessee-American Water Company Cost Allocation and Rate Design 34.2003 Pa. PUC R-038304 Pennsylvania-American Water Company Cost Allocation and Rate Design 35.2003 NJBPU WR03070511 New Jersey-American Water Company Cost Allocation and Rate Design 36.2003 Mo. PSC WR-2003-0500 Missouri-American Water Company Cost Allocation and Rate Design 37.2004 Va. St. Corp Cm PUE-200 -Virginia-American Water Company Cost Allocation and Rate Design 38.2004 Pa. PUC R-038805 Pennsylvania Suburban Water Company Cost Allocation and Rate Design 39.2004 Pa. PUC R-049165 The York Water Company Cost Allocation and Rate Design 40.2004 NJ BPU WR04091 064 The Atlantic City Sewerage Company Cost Allocation and Rate Design 41.2005 WVPSC 04-1024-S-MA Morgantown Utilty Board Cost Allocation and Rate Design 42.2005 WVPSC 04-1025-W-MA Morgantown Utilty Board Cost Allocation and Rate Design 43.2005 Pa. PUC R-051 030 Aqua Pennsylvania, Inc.Cost Allocation and Rate Design 44.2006 Pa. PUC R-051178 T. W. Phillips Gas and Oil Co.Cost Allocation and Rate Design 45.2006 Pa. PUC R-061322 The York Water Company Cost Allocation and Rate Design 46.2006 NJBPU WR-06030257 New Jersey American Water Company Cost Allocation and Rate Design Herbert, Oi 26 United Water Idaho Inc. LIST OF CASES IN WHICH PAUL R. HERBERT TESTIFIED Year Jurisdiction Docket No.Client/Utilit Subject 47.2006 Pa. PUC R-061398 PPL Gas Utilities, Inc.Cost Allocation and Rate Design 48.2006 NMPRC 06-00208-UT New Mexico American Water Company Cost Allocation and Rate Design 49.2006 Tn Reg Auth 06-00290 Tennessee American Water Company Cost Allocation and Rate Design 50.2007 Ca. PUC U-339-W Suburban Water Systems Water Conservation Rate Design 51.2007 Ca. PUC U-168-W San Jose Water Company Water Conservation Rate Design 52.2007 Pa. PUC R-00072229 Pennsylvania American Water Company Cost Allocation and Rate Design 53.2007 Ky. PSC 2007-00143 Kentucky American Water Company Cost Allocation and Rate Design 54.2007 Mo. PSC WR-2007-0216 Missouri American Water Company Cost Allocation and Rate Design 55.2007 Oh. PUC 07-1112-WS-AIR Ohio American Water Company Cost Allocation and Rate Design 56.2007 II.CC 07-0507 Illnois American Water Company Customer Class Demand Study 57.2007 Pa. PUC R-00072711 Aqua Pennsylvania, Inc.Cost Allocation and Rate Design 58.2007 NJBPU WR07110866 The Atlantic City Sewerage Company Cost Allocation and Rate Design 59.2007 Pa. PUC R-00072492 City of Bethlehem - Bureau of Water Revenue Reqmts, Cost Alloc. 60.2007 WVPSC 07 -0541-W -MA Clarksburg Water Board Cost Allocation and Rate Design 61.2007 WVPSC 07 -0998-W -42T West Virginia American Water Company Cost Allocation and Rate Design 62.2008 NJ BPU WR08010020 New Jersey American Water Company Cost Allocation and Rate Design 63.2008 Va St Corp Com PUE-2008-00009 Virginia American Water Company Cost Allocation and Rate Design 64.2008 Tn. Reg. Auth.08-00039 Tennessee American Water Company Cost Allocation and Rate Design 65.2008 MoPSC WR-2008-0311 Missouri American Water Company Cost Allocation and Rate Design 66.2008 DePSC 08-96 Artesian Water Company, Inc.Cost Allocation and Rate Design 67.2008 PaPUC R-2008-2032689 Penna. American Water Co. - Coatesville Cost Allocation and Rate Design Wastewater 68.2008 AZ Corp. Com.W-01303A-08-0227 Arizona American Water Co. - Water Cost Allocation and Rate DesignSW -01303A-08-0227 Wastewater 69.2008 PaPUC R-2008-2023067 The York Water Company Cost Allocation and Rate Design 70.2008 WVPSC 08-0900-W -42T West Virginia American Water Company Cost Allocation and Rate Design 71.2008 KyPSC 2008-00250 Frankfort Electric and Water Plant Board - Cost Allocation and Rate Design 72.2008 KyPSC 2008-00427 Kentucky American Water Company Cost Allocation and Rate Design 73.2009 PaPUC 2008-2079660 UGI - Penn Natural Gas Cost of Service Allocation 74.2009 PaPUC 2008-2079675 UGI - Central Penn Gas Cost of Service Allocation 75.2009 PaPUC 2009-2097323 Pennsylvania American Water Co.Cost Allocation and Rate Design 76.2009 la St Util Be RPU-09-Iowa-American Water Company Cost Allocation and Rate Design 77.2009 IICC 09-0319 Illnois-American Water Company Cost Allocation and Rate Design 78.2009 Oh PUC 09-391-WS-AIR Ohio-American Water Company Cost Allocation and Rate Design 79.2009 PaPUC R-2009-2132019 Aqua Pennsylvania, Inc.Cost Allocation and Rate Design 80.S009 Va St Corp Com PUE-2009-00059 Aqua Virginia, Inc.Cost Allocation (only) 81.2009 MoPSC WR-2010-0131 Missouri American Water Company Cost Allocation and Rate Design 82.2010 Va St Corp Com PUE-2010-00001 Virginia American Water Company Cost Allocation and Rate Design 83.2010 KyPSC 2010-00036 Kentucky American Water Company Cost Allocation and Rate Design 84.2010 NJ BPU WR10040260 New Jersey American Water Company Cost Allocation and Rate Design 85.2010 PaPUC 2010-2167797 T.W. Philips Gas and Oil Co.Cost Allocation and Rate Design 86.2010 PaPUC 2010-2166212 Pennsylvania American Water Co. - Wastewater Cost Allocation and Rate Design 87.2010 PaPUC R-2010-2157140 The York Water Company Cost Allocation and RateDesign 88.2010 KyPSC 2010-00094 Northern Kentucky Water District Cost Allocation and Rate Design 89.2010 WVPSC 1 0-0920-W -42T West Virginia American Water Co.Cost Allocation and Rate Design 90.2010 Tn Reg Auth 10-00189 Tennessee American Water Company Cost Allocation and Rate Design 91.2010 Ct Dept PU Cntrl 10-09-08 United Water Connecticut Cost Allocation and Rate Design 92.2010 PaPUC R-2010-2179103 City of Lancaster-Bureau of Water Rev Rqmts, Cst AIoc/Rate Dsgn 93.2011 PaPUC R-2010-2214415 UGI Central Penn Gas, Inc.Cost Allocation 94.2011 PaPUC R-2011-2232359 The Newtown Artesian Water Co.Revenue Requirement 95.2011 PaPUC R-2011-2232243 Pennsylvania American Water Co.Cost Allocation and Rate Design 96.2011 PaPUC R-2011-2232985 United Water Pennsylvania Inc.Demand Study, COS/Rate Dsgn 97.2011 PaPUC R-20 11-2244756 City of Bethlehem-Bureau of Water Rev. Rqmts/COS/Rate Dsgn Herbert, Di 27 United Water Idaho Inc. 98. 99. 100. 2011 2011 2011 MoPSC Oh PUC NJ BPU LIST OF CASES IN WHICH PAUL R. HERBERT TESTIFIED WR-2011-0337,338 11-4161-WS-AIR, Missouri American Water Company Ohio American Water Company New Jersey American Water Company Cost Allocation and Rate Design Cost Allocation and Rate Design Cost Allocation and Rate Design Herbert, Di 28 United Water Idaho Inc. Exhibit NO.5 Case No. UWI-W-11-02 \I1UiiíSf PI. e.!)erbert UNITED WATER IDAHO INC. BOISE, IDAHO 2ûl! ß,UG -3 P~1 I: 52 T'j,\,) APPLICATION OF PRESENT AND PROPOSED RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED APRIL 30,2011 AND PRO FORMA REVENUE UNDER PRESENT AND PROPOSED RATES GANNETT FLEMING, INC. - VALUATION AND RATE DIVISION Harrisburg, Pennsylvania Calgary, Alberta Valley Forge, Pennsylvania 054538.200 . CONTENTS Page Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Present Rate Application ........................................... 1 Proposed Rate Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Usage Adjustment ................................................ 3 Schedule 1. Summary of Pro forma Revenues Under Proposed Rates for the Twelve Months Ended April 20, 2011 and the Calculation of the Revenue Increase Under Proposed Rate Schedule 2. Summary of Revenue Under Present Rates and Pro Forma Revenues Under Present Rates for the Twelve Months Ended April 30, 2011 Schedule 3. Application of Present Rates and Proposed Rates to Consumption Analysis - Year Ended April 30, 2011 Schedule 4. Summary of Billng Determinants for Revenue Adjustments Schedule 4-A. R1 - Application of Present Rates and Proposed Rates to Number of Customers Added in Test Year - Year Ended April 30, 2011 Schedule 4-8. R2 - Application of Present Rates and Proposed Rates to Number of Customers Added in Future Year - Year Ended February 28,2012 Schedule 4-C. R3 - Application of Present Rates and Proposed Rates to Usage Adjustments - Year Ended April 30, 2011 Schedule 5. Application of Test Year Rates and Present Rates to Consumption Analysis - Year Ended April 30,2011 Schedule 6. Residential Consumption Trends (gallons per customer) Schedule 7. Residential Consumption per Customer Trends Schedule 8. Commercial Consumption Trends (gallons per customer) Schedule 9. Commercial Consumption per Customer Trends UNITED WATER IDAHO INC. BOISE, IDAHO APPLICATION OF PRESENT AND PROPOSED RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED APRIL 30, 2011 AND PRO FORMA REVENUE UNDER PRESENT AND PROPOSED RATES INTRODUCTION This report is organized into seven schedules. Schedule 1 summarizes the application of proposed rates to the consumption analysis for the twelve months ended April 30, 2011, and the pro forma revenues under proposed rates for the twelve months ended April 30, 2011. Schedule 2 summarizes the application of present rates to the consumption analysis and the pro forma revenues under present rates for the twelve months ended April 30, 2011. Schedules 3 through 5 set forth the application of historic, present and proposed rates to the detailed consumption analysis and billng determinants. Schedules 6 and 7 describe the usage adjustment in Schedule 4. PRESENT RATE APPLICATION Schedule 2 summarizes the pro forma revenues under present rates. Column 2 presents the revenues per books. Columns 3 and 4 present the removal of unbiled revenue accrued. Column 5 presents the revenues from the application of test year rates in effect to the detailed consumption analysis for the twelve months ended April 30, 2011. The application of rates and customer classifications presented are from the application of test year rates in Schedule 5. The adjustment factor in column 6 is calculated by dividing column 4 by column 5. Case No. UWI-2-11-02 Exhibit No. 5 Page 1 P. Herbert Column 7 is the result of applying present rates to the biling determinants in the test year (Schedule 5, column 7). Column 8 of Schedule 2 is the result of applying the adjustment factor in column 6 to the revenues in column 7. The application of present base rates to the pro forma test year adjustments of number of bills and consumption shown in Schedule 4 is presented in Schedules 4A, 4B and 4C, column 5 and brought forward to columns 8, 9 and 10 of Schedule 2. PROPOSED RATE APPLICATION Schedule 1 summarizes the pro forma revenues under proposed rates for the twelve months ended April 30. 2011, and determines the revenue increase by customer classification under proposed rates. Column 2 of Schedule 1 sets forth the pro forma revenues under present rates brought forward from column 12 of Schedule 2. Column 3 is the result of applying proposed rates to the detailed consumption analysis presented in Schedule 3. The adjustment factor is applied to the revenuesih column 3 to determine the proposed revenues in column 5. . Columns 6, 7 and 8 shows the results of applying proposed rates to the pro forma adjustments brought forward from column 7 of Sched.ules 4A, 4B and 4C. Column 9 of Schedule 1 is the sum of columns 5, 6, 7 and 8 and is the total pro forma revenues under proposed rates. The proposed increase in revenues is shown in column 10 by subtracting the pro forma revenues under present rates in column 2 from the pro forma revenues under proposed rates in column 9. The percent increase is shown in column 11. Case No. UWI-2-11-02 Exhibit NO.5 Page 2 P. Herbert USAGE ADJUSTMENT Schedules 6 through 9 demonstrate the decline in annual usage for residential and commercial customers when normalized for weather. These charts were used to determine the projected average annual customers usage of 153.8ccf for residential customers and 665.3ccf for commercial customers. See Schedule 4, adjustment R3 for related consumption adjustments. Case No. UWI-2-11-02 Exhibit No. 5 Page 3 P. Herbert UN I T E D W A T E R I D A H O I N C . SU M M A R Y O F P R O F O R M A R E V E N U E S U N D E R P R O P O S E D R A T E S F O R T H E T W L V E M O N T H S E N D E D A P R I L 3 0 , 2 0 1 1 AN D T H E C A L C U L A T I O N O F T H E R E V E N U E I N C R E A S E U N 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 R 3 Pr o F o r m a Bi l A n a l y s i s Ad j u s t m e n t R l Ad j u s t m n t R 2 We a t h e r a n d o t h e r To t a l Re v e n u e s , Re v e n u e s , Ad j u s t m e n t An n u a l i z a t i o n Cu s t o m e r G r o w t h Pr o F o r m a Pr o F o r a Cu s t o m e r Pr e s e n t R a t e s Pr o s e d R a t e s Fa c t o r Re v e n u e s , of T e s t Y e a r fr m 5 / 1 / 2 0 1 1 t h r u U s a g e A d j u s t m e n t s Re v e n u e Pr o p o e d Pe r c e n t Cl a s s i f i c a t i o n (S c h e d u l e 2 ) (S c h e d u l e 3 ) (S c h . 2 , c o l 6 ) Pr o p o s e R a t e s Gr o w t h 21 2 8 1 0 1 2 Pr o p o s e d R a t e s Pr o p o e d R a t e s In c r a s e In c r e a s e (1 ) (2 ) (3 ) (4 ) (5 ) = ( 4 ) X ( 3 ) (6 ) (7 ) (8 ) (9 ) = ( 5 ) + ( 6 ) (1 0 ) = ( 9 ) - ( 2 ) (n +( 7 ) + ( 8 ) ME T E R E P S A L E S Re s i d e n t i a l $2 6 , 1 3 4 , 9 3 9 $3 1 , 3 1 0 , 9 3 1 0. 9 9 6 5 1 9 4 3 $3 1 , 2 0 1 , 9 5 1 $9 7 , 3 5 0 $1 3 9 , 9 6 7 ($ 9 8 , 9 4 8 ) $3 1 , 3 4 0 , 3 2 1 $5 , 2 0 5 , 3 8 2 19 . 9 % Co m m e r c i a l 10 , 9 7 1 , 1 7 9 13 , 2 8 1 , 6 3 9 0. 9 9 9 5 3 4 0 5 13 , 2 7 5 , 4 5 0 12 , 4 1 4 53 , 7 9 2 (2 7 1 , 3 0 5 ) 13 , 0 7 0 . 3 5 0 2,0 9 9 , 1 7 1 19 . 1 % Mu n i c i p a l 20 3 , 3 1 6 23 7 , 1 3 6 0. 9 9 4 0 9 7 9 23 5 , 8 1 1 (1 , 2 1 0 ) 7, 2 6 4 0 24 1 , 8 6 4 ~5 4 8 19 . 0 % To t a l M e t e r e d S a l e s $3 7 , 3 0 9 , 4 3 4 $4 , 8 2 9 , 7 0 6 $4 4 , 7 1 3 , 2 1 2 $1 0 8 . 5 5 4 $2 0 1 , 0 2 4 ($ 3 7 0 , 2 5 3 ) $4 4 , 6 5 2 , 5 3 6 $7 , 3 4 3 , 1 0 2 19 . 7 % UN M E T E R E P S A L E S Re s i d e n t i a l 10 , 5 6 5 $1 2 , 6 6 6 1. 0 0 0 0 0 0 0 0 $1 2 , 6 6 6 $0 $0 $0 $1 2 , 6 6 6 $2 , 1 0 1 19 . 9 % Pr i v a t e F i r e P r o t e c t i o n 81 5 , 2 9 8 1, 0 5 5 , 3 7 1 0. 9 9 9 6 3 8 6 1 1, 0 5 4 , 9 8 9 3, 4 5 7 28 8 0 1,0 5 8 , 7 3 5 24 3 , 4 3 7 . 29 . 9 % Su b t o t a l U n m e t e r e d S a l e s 82 5 , 8 6 3 1, 0 6 8 , 0 3 6 1, 0 6 7 , 6 5 5 3, 4 5 7 28 8 0 1,0 7 1 , 4 0 0 ~5 3 8 29 . 7 % To t a l S a l e s o f W a t e r $3 8 , 1 3 5 , 2 9 7 $4 5 , 8 9 7 , 7 4 2 $4 5 , 7 8 0 , 8 6 7 $1 1 2 , 0 1 1 $2 0 1 , 3 1 2 (3 7 0 , 2 5 3 ) $4 5 , 7 2 3 , 9 3 6 $7 , 5 8 8 , 6 3 9 19 . 9 % Ot h e r O p e r a t i n g R e v e n u e s 16 1 , 3 0 6 18 9 , 0 3 1 18 9 , 0 3 1 0 0 0 18 9 , 0 3 1 -- 7 2 6 17 . 2 % To t a l $3 8 , 2 9 6 , 6 0 3 $4 6 , 0 8 6 , 7 7 4 $4 5 , 9 6 9 , 8 9 8 $1 1 2 , 0 1 1 $2 0 1 , 3 1 2 ($ 3 7 0 , 2 5 3 ) $4 5 , 9 1 2 , 9 6 8 $7 , 6 1 6 , 3 6 5 19 . 9 % "" " " e n m ( ) . W O X W :c C O = r = r C I (1 ( 1 ( 1 ë T ( 1 a- . . § - ; : Z (I O . . Z O ;: - \ I 0 . .. . . . C ui : E iNi....ioN UN I T E D W A T E R I D A H O I N C . SU M M A Y O F R E V E N U E U N D E R P R E S E N T R A T E S A N D P R O F O R M A R E V E N U E S U N D E R P R E S E N T R A T E S FO R T H E T W L V E M O N T H S E N D E D A P R I L 3 0 , 2 0 1 1 Ad j u s t e d Ad j u s t m e n t R 3 Re v e n u e s , Bil An a l y s i s Ad j u s t m e n t R l Ad u s t m e n R 2 We a t h e r a n d o t h To t a l Pe r Bo o k s Re m o v a l o f N e t Ad j u s t e d Re v e n u e s , Re v e n u e U n d e r A d j u s t e d R e v e n u e An n u a l l z a t i o n Cu s t o e r G r o Pr o F o r a Pro Fo r e Cu s t o m e r Ye s t Y e a r R a t e s Un b i l l e R e v e n u e Te s t Y e a r Te s t Y e a r R a t e s Ad J u s t m e n l Pr a s e n t R a l e s Un d r of Te s t Ye a r fr o m 5 1 1 1 2 0 1 1 t h n i U s a g e A d u s t m e n t s Re v e n u Cl a s s i f c a l i o n 41 3 1 2 0 1 1 Ac e a l Bo k R e v n u e (S c h e d u l e 5 ) Fa c t o r (S c h e d u l e 4 ) Pr e s e n t R a t e s Gr o h 21 B 1 0 1 2 Pr e s e n t R a t e s Pr e s e n t R a t e s (1 ) (2 ) (3 ) (4 ) (5 ) (6 ) = ( 4 V ( 5 ) (7 ) (8 ) = ( 7 ) X ( 6 ) (9 ) (1 0 ) (1 1 ) (1 2 ) = ( 8 ) + ( 9 ) +( 1 0 ) + ( 1 1 ) ME T E R E D S A L E S Re s i d e n t i a l $2 5 , 6 4 7 , 5 6 ( b ) $0 $2 5 , 6 4 7 , 5 6 $2 5 , 7 3 7 , 1 4 6 0. 9 9 5 1 9 4 $2 6 , 1 1 3 , 1 0 2 $2 6 , 0 2 2 , 2 1 4 $8 1 , 1 7 4 $1 1 6 , 7 1 0 ($ 8 5 , 1 5 9 ) $2 6 , 1 3 4 , 9 3 9 Co m m e r c i a l 10 , 9 8 7 . 5 2 2 0 10 , 9 8 7 , 5 2 2 10 , 9 9 , 6 4 0. 9 9 9 5 3 4 0 5 11 , 1 5 3 , 4 0 3 11 , 1 4 6 , 2 0 6 10 , 5 8 45 , 8 8 1 (2 3 3 , 4 9 7 ) 10 , 9 7 1 , 1 7 9 Mu n i c i p a l 19 5 2 8 0 0 19 5 , 2 8 0 19 6 , 3 7 7 0. 9 9 9 7 9 19 9 . 4 0 2 19 8 , 2 8 8 (1 , 0 0 ) 6, 0 3 0 20 3 , 3 1 6 To t a l M e t e r e d S a l e s $3 6 , 8 3 0 , 3 6 7 $0 $3 6 , 8 3 0 , 3 6 7 $3 , 9 2 , 1 6 7 0. 9 9 7 4 0 5 6 $3 7 , 4 6 , 9 0 $3 7 , 3 6 , 7 0 8 $9 0 , 7 5 7 $1 6 8 , 6 2 5 ($ 3 1 8 , 6 5 ) $3 7 , 3 0 , 4 3 UN M E T E R E D S A L E S Re s i d e n t i a l $1 0 , 4 0 9 $0 $1 0 , 4 0 9 $1 0 , 4 0 9 1. 0 ~ $1 0 , 5 6 10 , 5 6 0 $0 $0 10 , 5 6 5 Pr i v a t e F i r e P r o e c i o n 79 8 , 9 8 0 79 8 , 9 8 6 79 9 , 2 7 5 0. 9 9 3 8 1 81 1 , 8 4 81 1 , 5 5 3 3, 4 5 7 28 8 0 81 5 2 9 Su b t o t a l U n m e t e r e d S a l e s 80 9 , 3 9 5 0 80 , 3 9 5 80 6 8 82 2 , 4 1 1 82 2 , 1 1 7 3, 4 5 7 28 8 0 82 5 , 8 6 3 To i a l S a l a s o f W a t e r $3 7 , 6 3 9 , 7 6 2 $0 $3 7 , 6 3 9 , 7 6 2 $3 7 , 7 3 5 , 8 5 1 $3 8 , 2 8 8 , 3 1 8 $3 , 1 9 0 , 8 2 5 $9 4 , 2 1 4 $1 6 8 , 9 1 3 (3 1 8 , 6 5 6 ) $3 , 1 3 5 , 2 9 7 Ne t U n b i l e d R e v e n u e A c c a l (1 3 V 6 0 ) 13 2 , 7 6 0 0 0 0 0 0 0 0 0 To t a l W a t e r R e v e n u e $3 7 , 5 0 7 , 0 0 2 $1 3 2 . 7 6 0 $3 7 , 6 3 9 , 7 6 2 $3 7 , 7 3 5 , 8 5 1 $3 8 , 2 8 8 , 3 1 8 $3 8 , 1 9 0 , 8 2 5 $9 4 , 2 1 4 $1 6 8 , 9 1 3 ($ 3 1 8 , 6 5 ) $3 8 , 1 3 5 , 2 9 7 Ot h e r O p e r a t i n g R e v e n u e s 16 1 , 3 0 16 1 , 3 0 16 1 , 3 0 16 1 , 3 0 16 1 , 3 0 0 0 0 16 1 , 3 0 To t a l $3 7 , 6 6 , 3 0 8 $0 $3 7 , 8 0 1 , 0 6 $3 7 , 8 9 7 , 1 5 7 $3 8 , 4 4 9 , 6 2 4 $3 8 , 3 5 2 , 1 3 1 $9 4 , 2 1 4 $1 6 8 , 9 1 3 ($ 3 1 8 , 6 5 6 ) $3 8 , 2 9 6 , 6 0 3 (b ) D o e s n o t i n c l u d u n m e t e r e d s e l e s . '1 ' 1 e n m ( ) . l 1 0 ) ( l 1 :i C O = r = r C J (1 ( 1 ( 1 s = ( 1 -i . . 0 . ; : Z cr c : (1 O " ' Z O ;: - " ' 0 ' .. N . C () : E Ni....IoN UNITED WATER IDAHO INC. APPLICATION OF PRESENT RATES AND PROPOSED RATES TO CONSUMPTION ANALYSIS YEAR ENDED APRil 30, 2011 Rate Bloc Number Total Present Proposed Proposed 100 Gallons Of Bils Consumption Rate Revenue Rate Revenue (1)(2)(3)(4)(5)(6)(7) Residential - Bi-Monthly Customer Charge 5/8 81,047 0 $18.10 $1,466,951 $23.20 $1,880,290 3/4 316,986 0 18.10 5,737,447 23.20 7,354,075 1 43,405 0 23.79 1,032,605 29.70 1,289,12911/2 1,333 0 38.55 51,387 50.80 67,7162628055.65 34,948 78.70 49,424Subtotal443,399 0 8,323,338 10,640,634 Winter Up to 3 CCF 0 762,235 1.3521 1,030,618 1.5710 1.197,472 Up to 3 CCF 0 3,192.552 1.3521 4,316,649 1.5710 5,015,498Summer Up to 3 CCF 0 54,454 1.3521 736,156 1.5710 855,337 Over 3 CCF 0 6,926,009 1.6902 11,706,341 1.9639 13,601,990Subtotal011,425,250 17,789,764 20,670,297 Flat Rate 146 72.36 10,565 86.75 12,666 Total Class 443,545 11,425,250 $26,123,667 $31,323.596 Commercial - Bi-Monthlv Customer Charge 5/8 2,844 0 $18.10 $51,476 $23.20 $65,9813/4 12,421 0 18.10 224,820 23.20 288,167 1 14,414 0 23.79 342,909 29.70 428,09611/2 9,915 0 38.55 382,223 50.80 503,682 2 10,473 0 55.65 582,822 78.70 824,22537800102.23 79,739 153.60 119,808 4 239 0 162.71 38,888 286.50 68,4746180313.15 5,637 478.40 8,611 8 5 0 472.39 2,362 625.80 3,129 Subtotal 51,109 0 1,710,876 2,310,173 Winter Up to 3 CCF 0 92,462 1.3521 125,017 1.5710 145,257 Over 3 CCF 0 2,288,393 1.3521 3,094,136 1.5710 3,595,066Summer Up to 3 CCF 0 58,278 1.3521 78,798 1.5710 91,555Over 3 CCF 0 3,635,413 1.6902 6,144,576 1.9639 7,139,588Subtotal06,074,546 9,442,527 10,971,466 Total Class 51,109 6,074,546 $11,153,403 $13,281.639 Case No. UWI-2-11-02 Exhibit No. 5 Schedule 3 Page 1 of 2 P. Herbert UNITED WATER IDAHO INC. APPLICATION OF PRESENT RATES AND PROPOSED RATES TO CONSUMPTION ANALYSIS YEAR ENDED APRIL 30, 2011 Rate Block Number Total Present Proposed Proposed 100 Gallons Of Bills Consumption Rate Revenue Rate Revenue (1)(2)(3)(4)(5)(6)(7) Other Public Authority - Bi-Monthly Customer Charge 5/8 10 0 $18.10 $181 $23.20 $232 3/4 54 0 18.10 977 23.20 1,253 1 188 0 23.79 4,473 29.70 5,584 11/2 114 0 38.55 4,395 50.80 5,791 2 245 0 55.65 13,634 78.70 19,282 3 6 0 102.23 613 153.60 922 4 6 0 162.71 976 286.50 1,719 Subtotal 623 0 25,249 34,783 Winter Up to 3 CCF 0 884 1.3521 1,195 1.5710 1,388 Over 3 CCF 0 23,167 1.3521 31,325 1.5710 36,396 Summer Upto3 CCF 0 619 1.3521 837 1.5710 973 Over 3 CCF 0 83,302 1.6902 140,797 1.9639 163,596 Subtotal 0 107,972 174,153 202,353 Total Class 623 107,972 $199,402 $237,136 Priate Fire Lines - Bi-Monthly Fire Line Size 3" and smaller 2,457 0 $31.68 $77,838 $41.18 $101,179 4"3,077 0 48.02 147,758 62.42 192,06 6"3,053 0 119.26 36,101 155.04 473,337 8"848 0 195.96 166,174 254.74 216,020 10"60 0 305.60 18,336 397.28 23,837 12"35 0 457.74 16,021 595.06 20,827 Hydrants 976 0 19.20 18,739 24.96 24,361 Sprinkler 6 0 479.96 2,880 623.94 3,744 Total Private Fire 10,512 0 $811,846 $1,055,371 Total 505,789 17,607,768 38,288,318 45,897,742 Case No. UWI-2-11-02 Exhibit NO.5 Schedule 3 Page 2 of2 P. Herbert UNITD WATER IDAHO INC. SUMMAY OF BILUNG DETRMINAN FOR REVENUE ADJUSTMENTS R1 ANNUAUZATION OF TEST YEAR GROWT Number Number of Customers 1/2 of Of Average Usage 4/30/2010 4/30/2011 Gain/Loss Growth Bi-Monthly Bils Usage Per bil Adjustment Residential 73,702 74,168 466 233 1,398 25.67 35,882 Commercial 8,907 8,925 18 9 54 110.83 5,985 Public 130 129 (1)-0.5 (3)173.33 (520) Private Fire 1,599 1,622 23 12 72 R2 CUSTOMER GROWT THROUGH 2/28/2012 Number Number of Customers Of Bi- Monthly Average Usage 4/30/2010 Proj. 2/28/2012 Gain/Loss Bils Usage Per bil Adjustment Residential 74,168 74,503 335 2,010 25.67 51,590 Commercial 8,925 8,964 39 234 110.83 25,935 Public 129 132 3 18 173.33 3,120 Private Fire 1,622 1,623 1 6 R3 WEATHER AND OTHER USAGE ADJUSTENT Pro Forma Total Pro Forma TestVear Annual Usage Pro Forma Test Usage Customers Per Customer Usage Year Usage Adjustment Residential 73,937 153.80 11,371,472 11,425,250 (53,778) Commercial 8,906 665.30 5,924,829 6,074,54 (149,717) Case No. UWI-2-11-02 Exhibit NO.5 Schedule 4 Page 1 of 1 P. Herbert Case No. UWI-2-11-02 Exhibit No.5 Schedule4A Page 1 of 2 P. Herbert UNITED WATER IDAHO INC. R1 - APPLICATION OF PRESENT RATES AND PROPOSED RATES TO NUMBER OF CUSTOMERS ADDED IN TEST YEAR YEA ENDED APRIL 30, 2011 Rate Block Number Total Present Proposed Proposed 100 Gallons Of Bils Consumption Rate Revenue Rate Revenue . (1)(2)(3)(4)(5)(6)(7) Other Public Authontv - Bi-Monthly Customer Charge 2 (3)0 55.65 (167)78.70 (236)Subtotal (3)0 (167)(236) Winter Up to 3 CCF 0 (4)1.3521 (5)1.5710 (6) Over 3 CCF 0 (112)1.3521 (151)1.5710 (176)Summer Up to 3 CCF 0 (3)1.3521 (4)1.5710 (5) Over 3 CCF 0 (401)1.6902 (678)1.969 (788)Subtotal 0 (520)(839)(974) Total Class (3)(520)-$1,00 -$1,210 Pnvate Fire Lines - Bi-MonthlY Fire Line Size 4"72 0 48.02 3,457 48.02 3,457 Total Pnvate Fire 72 0 $3,457 $3,457 Total 1,521 41,347 94,214 112,011 Case No. UWI-2-11-02 Exhibit NO.5 Schedule 4A Page 2 of2 P. Herbert UNITED WATER IDAHO INC. R2 - APPLICATION OF PRESENT RATES AND PROPOSED RATES TO NUMBER OF CUSTOMERS ADDED IN FUTURE YEAR YEAR ENDED FEBRUARY 28,2012 Rate Bloc Number Total Present Proposed Proposed 100 Gallons Of Bils Consumption Rate Revenue Rate Revenue (1 )(2)(3)(4)(5)(6)(7) Residential - Bi-Monthly Customer Charge 3/4 2,010 0 18.10 36,381 23.20 46,632 Subtotal 2,010 0 36,381 46,632 Winter Up to 3 CCF 0 3,442 1.3521 4,654 1.5710 5,407 Over 3 CCF 0 14,416 1.3521 19,492 1.5710 22,647Summer Up to 3 CCF 0 2,458 1.3521 3,324 1.5710 3,862 Over 3 CCF 0 31,274 1.6902 52,859 1.9639 61,419Subtotal051,590 80,329 93,335 Total Class 2,010 51,590 $116,710 $139,967 Commercial - Bi-Monthly Customer Charge 1 234 0 23.79 5,567 29.70 6,950Subtotal23405,567 6,950 Winter Up to 3 CCF 0 395 1.3521 534 1.5710 620 Over 3 CCF 0 9,770 1.3521 13,210 1.5710 15,349Summer Upto3 CCF 0 249 1.3521 336 1.5710 391Over3CCF015,521 1.6902 26,234 1.9639 30,482Subtotal025,935 40,314 46,842 . Total Class 234 25,935 $45,881 $5,792 Case No. UWI-2-11-02 Exhibit NO.5 Schedule 48 Page 1 of 2 P. Herbert UNITED WATER IDAHO INC. R2 - APPLICATION OF PRESENT RATES AND PROPOSED RATES TO NUMBER OF CUSTOMERS ADDED IN FUTURE YEAR YEAR ENDED FEBRUARY 28, 2012 Rate Block Number Total Prent Proposed Proposed 100 Gallons Of Bils Consumption Rate Revenue Rate Revenue(1)(2)(3)(4)(5)(6)(7) Other Public Authori - Bi-Monthly Customer Charge 2 18 0 55.65 1,002 78.70 1,417Subtotal1801,002 1,417 Winter Up to 3 CCF 0 26 1.3521 35 1.5710 41 Over 3 CCF 0 669 1.3521 905 1.5710 1,051Summer Up to 3 CCF 0 18 1.3521 24 1.5710 28Over3CCF02,407 1.6902 4,068 1.9639 4,727Subtotal03,120 5,032 5,847 Total Class 18 3,120 $6,034 $7,264 Private Fire Lines - Bi-MonthlyFire Line Size 4"6 0 48.02 288 48.02 288 Total Private Fire 6 0 $288 $288 Total 2,268 80,645 168,913 201,312 Case No. UWI-2-11-02 Exhibit NO.5 Schedule 48 Page 2 of2 P. Herbert UNITED WATER IDAHO INC. R3 - APPLICATION OF PRESENT RATES AND PROPOSED RATES TO USAGE ADJUSTMENTS YEAR ENDED APRIL 30, 2011 Rate Bloc Number Total Present Propose Proposed 100 Gallons Of Bils Consumption Rate Revenue Rate Revenue (1)(2)(3)(4)(5)(6)(7) Residential - Bi-Monthly Customer Charge 0 $0 $0 Winter Up to 3 CCF 0 1.3521 0 1.5710 0 Over 3 CCF 0 (16,968)1.3521 (22,942)1.5710 (26,65)Summer Up to 3 CCF 0 1.3521 0 1.5710 0 Over 3 CCF 0 (36,810)1.6902 (62,217)1.9639 (72,291) Subtotal 0 (53,TIS)(85,159)(98,94S) Total Class 0 (53,TIS)(S5, 159) (98,948) Commercial - Bi-Monthly Customer Charge 0 0 $0 $0 Winter Up to 3 CCF 0 1.3521 0 1.5710 0 Over 3 CCF 0 (57,836)1.3521 (78,201)1.5710 (90,861) Summer Up to 3 CCF 0 1.3521 0 1.5710 0 Over 3 CCF 0 (91,881)1.6902 (155,297)1.9639 (180,445) Subtotal 0 (149.717)(233,497)(271.305) Total Class 0 (149.717)(233,497)(271,305) Total 0 (203,495)0 (318.656)0 (370.253) Case No. UWI-2-11-02 Exhibit No. 5 Schedule 4C Page 1 of 1 P. Herbert UNITED WATER IDAHO INC. APPLICATION OF TEST YEAR RATES AND PRESENT RATES TO CONSUMPTION ANALYSIS YEAR ENDED APRIL 30, 2011 Rate Block Number Total Test Year Test Year Present Present Rate 100 Gallons Of Bils Consumption Rate Revenue Rate Revenue (1)(2)(3)(4)(5)(6)(7) Residential - Bi-Monthly Customer Charge 5/8 13,511 0 $18.10 $244,549 $18.10 $244,549 3/4 52,842 0 18.10 956,440 18.10 956,440 1 7,236 0 23.79 172,144 23.79 172,144 1 1/2 222 0 38.55 8,558 38.55 8,558 2 105 0 55.65 5,843 55.65 5,84 5/8 67,536 0 17.81 1,202,816 18.10 1,222,402 3/4 264,144 0 17.81 4,704,405 18.10 4,781,00 1 36,169 0 23.42 847,078 23.79 860,461 1 1/2 1,111 0 37.95 42,162 38.55 42,829 2 523 0 54.78 28,650 55.65 29,105 Subtotal 443,399 0 8,212,645 8,323,338 Winter Upto3 CCF 0 26,213 1.2110 31,744 1.3521 35,442 Up to 3 CCF 0 624,663 1.3310 831,426 1.3521 84,607 Upto 3 CCF 0 111,360 1.3521 150,570 1.3521 150,570 Over 3 CCF 0 2,627,145 1.3310 3,496,730 1.3521 3,552,163 Over 3 CCF 0 565,407 1.3521 764,486 1.3521 764,486 Summer Upto 3 CCF 0 54,454 1.3310 724,668 1.3521 736,156 Over 3 CCF 0 14 1.5140 21 1.6902 24 Over 3 CCF 0 6,925,995 1.6640 11,524,856 1.6902 11,706,317 Subtotal 0 11,425,250 17,524,501 17,789,764 Flat Rate 139 71.24 9,902 72.36 10,058 Flat Rate 7 72.36 507 72.36 507 Total Class 443,399 11,425,250 $25,747,555 $26,123,666 Case No. UWI-2-11-02 Exhibit NO.5 Schedule 5 Page 1 of 3 P. Herbert UNITED WATER IDAHO INC. APPLICATION OF TEST YEAR RATES AND PRESENT RATES TO CONSUMPTION ANALYSIS YEAR ENDED APRIL 30, 2011 Rate Block Number Total Test Year Test Year Present Present Rate 100 Gallons Of Bils Consumption Rate Revenue Rate Revenue (1)(2)(3)(4)(5)(6)(7)Commercial - Bi-MonthlyCustomer Charge 5/8 474 0 $18.10 $8,581 $18.10 $8,5813/4 2,071 0 18.10 37,478 18.10 37,478 1 2,403 0 23.79 57,163 23.79 57,16311/2 1,653 0 38.55 63,717 38.55 63,71721,746 0 55.65 97,157 55.65 97,15731300102.23 13,293 102.23 13,2934400162.71 6,483 162.71 6,483630313.15 940 313.15 940810472.39 394 472.39 3945/8 2,370 0 17.81 42,208 18.10 42,8953/4 10,350 0 17.81 184,341 18.10 187,343112,011 0 23.42 281,302 23.79 285,74611/2 8,262 0 37.95 313,549 38.55 318,50728,727 0 54.78 478,073 55.65 485,6636500100.65 65,420 102.23 66,44741990160.19 31,903 162.71 32,4056150308.29 4,624 313.15 4,697840465.06 1,938 472.39 1,96Subtotal51,109 0 1,688,56 1,710,877 Winter Up to 3 CCF 0 10,772 1.2110 13,04 1.3521 14,56 Up to 3 CCF 0 57,607 1.3310 76,675 1.3521 77,890 Up to 3 CCF 0 24,083 1.3521 32,563 1.3521 32,563 Over 3 CCF 0 1,859,463 1.3310 2,474,945 1.3521 2,514,180 Over 3 CCF 0 428,930 1.3521 579,957 1.3521 579,957Summer Up to 3 CCF 0 58,278 1.3310 77,568 1.3521 78,798 Over 3 CCF 0 3,635,413 1.660 6,049,328 1.6902 6,144,576Subtotal06,074,546 9,304,080 9,442,527 Total Class 51,109 6,074,546 $10,992,64 $11,153,404 Case No. UWI-2-11-02 Exhibit NO.5 Schedule 5 Page 2 of 3 P. Herbert UNITED WATER IDAHO INC. APPLICATION OF TEST YEA RATES AND PRESENT RATES TO CONSUMPTION ANALYSIS YEAR ENDED APRIL 30, 2011 Rate Block Number Total Test Year Test Year Present Present Rate 100 Gallons Of Bils Consumption Rate Revenue Rate Revenue (1)(2)(3)(4)(5)(6)(7) Other Public Authority - Bi-Monthly Customer Charge 5/8 2 0 $16.10 $30 $18.10 $30 3/4 9 0 18.10 163 18.10 163 1 31 0 23.79 746 23.79 746 1 1/2 19 0 38.55 733 38.55 733 2 41 0 55.65 2,273 55.65 2,273 3 1 0 102.23 102 102.23 102 4 1 0 162.71 163 162.71 163 5/8 8 0 17.81 148 18.10 151 3/4 45 0 17.81 801 18.10 814 1 157 0 23.42 3,669 23.79 3,727 11/2 95 0 37.95 3,605 38.55 3,662 2 204 0 54.78 11,184 55.65 11,361 3 5 0 100.65 503 102.23 511 4 5 0 160.19 801 162.71 814 Subtotal 623 0 24,921 25,250 Winter Upto3 CCF 0 66 1.2110 80 1.3521 89 Up to 3 CCF 0 779 1.3310 1,037 1.3521 1,053 Upto3 CCF 0 39 1.3521 52 1.3521 52 Over 3 CCF 0 22,538 1.3310 29,998 1.3521 30,473 Over 3 CCF 0 630 1.3521 851 1.3521 851 Summer Upto3 CCF 0 619 1.3310 824 1.3521 837 Over 3 CCF 0 83,302 1.6640 138,614 1.6902 140,797 Subtotal 0 107,972 171,456 174,153 Total Class 623 107,972 $196,377 $199,403 1,906 Private Fire Lines - Bi-Monthly Fire Line Size 3" and smaller 2,457 0 $31.18 $76,609 31.68 $77,838 4"3,077 0 47.28 145,481 48.02 147,758 6"3,053 0 117.42 358,483 119.26 36,101 8"84 0 192.92 163,596 195.96 166,174 10"60 0 300.86 18,052 305.60 18,336 12"35 0 450.64 15,772 457.74 16,021 Hydrants 976 0 18.90 18,44 19.20 18,739 Sprinkler 6 0 472.52 2,835 479.96 2,880 Total Private Fire 10,512 0 $799,275 $811,846 Total 505,643 17,607,768 37,735,851 38,288,320 Case No. UWI-2-11-02 Exhibit NO.5 Schedule 5 Page 3 of 3 P. Herbert Un i t e d W a t e r I d a h o Re s i d e n t i a l C o n s u m p t i o n T r e n d s (g a l l o n s p e r c u s t o m e r ) Ye a r (1 Dr o u g h t In d e x l2 Wi n t e r l ' l n d o o r " C o n s u m p t i o n Pe r D a y A n n u a l i z e d In d o o r Tr e n d l i n e ( b ) (5 ) Tr e n d l i n e (9 ) =( 5 ) + ( 7 ) Ir r i g a t i o n To t a l C o n s u m p t i o n Ch a n g e (A c t u a V Pr o j e c t e d ) ( d ) (1 0 ) Pe r c n t Ch a n g e (1 1 ) Ir r i g a t i o n Tr e n d l l n e ( c ) (7 ) Bi l e d Co n s u m p t i o n (8 ) Ac t u a l ( a ) (3 ) Ac t u a l (4 =( 3 ) x 3 6 5 Ir r i g a t i o n (6 ) =( 8 ) - ( 4 ) 20 0 1 - 1 . 6 3 1 9 2 7 0 , 2 4 2 7 3 , 0 2 7 8 6 , 8 8 6 7 7 , 7 9 6 1 5 7 , 1 2 7 1 5 0 , 8 2 3 20 0 2 . 2 . 0 7 1 9 6 . 7 1 , 5 3 7 7 1 , 3 4 7 8 5 , 6 5 3 7 6 , 2 2 4 1 5 7 , 1 9 0 1 4 7 , 5 7 1 6 3 0 . 0 % 20 0 3 - 0 . 6 1 9 8 7 2 , 2 6 5 6 9 , 6 6 6 7 9 , 4 8 4 7 4 , 6 5 3 1 5 1 , 7 5 0 1 4 4 , 3 1 9 ( 5 , 4 4 0 ) - 3 . 5 % 20 0 4 - 0 . 1 7 1 9 6 7 1 , 4 1 3 6 7 , 9 8 6 7 2 , 5 8 0 7 3 . 0 8 2 1 4 3 , 9 9 3 1 4 1 , 0 6 7 ( 7 , 7 5 6 ) - 5 . 1 % 20 0 5 - 0 . 2 3 1 7 8 6 5 , 0 7 5 6 6 , 3 0 5 6 6 , 3 4 1 7 1 , 5 1 0 1 3 1 , 4 1 6 1 3 7 , 8 1 6 ( 1 2 , 5 7 8 ) - 8 . 7 % 20 0 6 0 . Q 1 7 4 6 3 , 4 4 5 6 4 , 6 2 5 7 2 , 1 4 8 6 9 , 9 3 9 1 3 5 , 5 9 3 1 3 4 , 5 6 4 4 , 1 7 7 3 . 2 % 20 0 7 - 1 . 4 0 1 7 1 6 2 , 4 8 3 6 2 , 9 4 4 7 6 , 5 4 3 6 8 , 3 6 8 1 3 9 , 0 2 5 1 3 1 , 3 1 2 3 , 4 3 2 2 . 5 % 20 0 8 - 0 . 9 1 1 6 6 6 0 , 4 5 8 6 1 , 2 6 4 6 9 , 4 7 5 6 6 , 7 9 6 1 2 9 , 9 3 3 1 2 8 , 0 6 0 ( 9 , 0 9 2 ) - 6 . 5 % 20 0 9 0 . 1 1 1 6 0 5 8 , 2 3 8 5 9 , 5 8 3 6 4 , 9 4 5 6 5 , 2 2 5 1 2 3 , 1 8 3 1 2 4 , 8 0 8 ( 6 , 7 5 0 ) - 5 . 2 % 20 1 0 0 . 9 5 1 6 3 5 9 , 4 9 4 5 7 , 9 0 3 5 7 , 2 0 8 6 3 , 6 5 3 I 1 1 6 , 7 0 2 I 1 2 1 , 5 5 6 ( 6 , 4 8 1 ) - 5 . 3 % 20 1 1 - 0 . 1 6 * 5 6 , 2 2 2 6 2 , 0 8 2 1 1 8 , 3 0 4 1 , 6 0 2 1 . 4 % 20 1 2 - 0 . 1 6 5 4 , 5 4 2 6 0 , 5 1 1 I 1 1 5 , 0 5 3 I ( 3 , 2 5 2 ) - 2 . 7 % 20 1 3 - 0 . 1 6 5 2 , 8 6 1 5 8 , 9 3 9 1 1 1 , 8 0 1 ( 3 , 2 5 2 ) - 2 . 8 % 20 1 4 - 0 . 1 6 5 1 , 1 8 1 5 7 , 3 6 8 1 0 8 , 5 4 9 ( 3 , 2 5 2 ) - 2 . 9 % 20 1 5 - 0 . 1 6 4 9 , 5 0 0 5 5 , 7 9 7 1 0 5 , 2 9 7 ( 3 , 2 5 2 ) - 3 . 0 % Av e r a g e - 0 . 1 6 * 1 7 9 6 5 , 4 6 5 7 3 , 1 2 6 I 1 2 8 , 8 8 7 * * 1 Fu t u r e A n n u a l Ch a n g e s ( e ) CC F p e r c u s t o m e r p e r y e a r Ga l l o n s p e r c u s t o m e r p e r d a y No t e s : . 3 0 - y e a r a v e r a g e .. 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F i v e Y e a r A v e r a g e B i l l e d C o n s u m p t i o n Bi l l e d 2 0 1 0 C o n s u m p t i o n p e r C u s t o m e r : 51 4 , 1 7 2 g a l l o n s p e r y e a r 68 7 c c f p e r y e a r 1, 5 8 9 g a l l o n s . p e r c u s t o m e r p e r d a y Pr o j e c t e d 2 0 1 2 C o n s u m p t i o n p e r C u s t o m e r : 49 7 , 6 1 4 g a l l o n s p e r y e a r 66 5 . 3 c c p e r y e a r 1, 3 6 3 g a l l o n s p e r c u s t o m e r p e r d a y Pr o j e c t e d a n n u a l r a t e o f d e c l i n e i n f u t u r e y e a r s ( L e . , a l o n g t r e n d l i n e ) : 1 8 , 1 1 2 g a l l o n s p e r y e a r ( 5 0 g a l l o n s / c u s t o m e r / d a y , cc f / c u s t o m e r / y e a r ) . 24 UNITED WATER IDAHO INC. BOISE, IDAHO COST OF SERVICE ALLOCATION STUDY FOR THE TEST YEAR ENDED APRIL 30, 2011 Exhibit NO.6 Case No. UWI-W-11-02 Q !' î: i: ¡ ~d 17"°)Witness: P. i'Pf H~;' innU.j.-3 Pt'fl=52 GANNETT FLEMING, INC. - VALUATION AND RATE DIVISION Harrisburg, Pennsylvania Calgary, Alberta Valley Forge, Pennsylvania CONTENTS PART i. INTRODUCTION Page Plan of Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Basis of Study .................................................. 1 Allocation Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Base Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Extra Capacity Costs ....................................... 2 Customer Costs ........................................... 2 Fire Protection Costs ....................................... 3 Results of Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 PART II. COST OF SERVICE BY CUSTOMER CLASSIFICATION Schedule A. Comparison of Cost of Service with Revenues Under Present and Proposed Rates for the Test Year Ended December 31,2011 Schedule B. Cost of Service for the Twelve Months Ended April 30, 2011, Allocated to Customer Classifcations Schedule C. Factors for Allocating Cost of Service to Customer Classifications Schedule D. Summary of Average Daily Send Out and Maximum Daily Usage for the Years 2001 Schedule E. Basis for Allocating Demand Related Costs of Fire Service to Private and Public Fire Protection Customer Classifications Schedule F. Calculation of Customer Cost Per Month for 5/8-inch Meter III. COMPARISON OF PRESENT AND PROPOSED RATES Schedule G. Comparison of Present and Proposed Rates PART i. INTRODUCTION UNITED WATER IDAHO INC. COST OF SERVICE ALLOCATION STUDY FOR THE TEST YEAR ENDED APRIL 30, 2011 PART i. INTRODUCTION PLAN OF REPORT The report sets forth the results of the cost of service allocation studies based on district specific revenue requirements as of April 30, 2011, for United Water Idaho. Part I, Introduction, contains statements with respect to the basis of the study, the procedures employed, and a summary ofthe results ofthe study. Part ", Cost of Service by Customer Classification, presents detailed schedules of the allocation of costs to specific customer classifications, as well as the bases for the allocations. Schedule A in Part II summarizes the cost allocation and the revenues produced under present and proposed rates. Part III sets forth present and proposed rates with bil comparisons. BASIS OF STUDY The purpose of the cost allocation studies was to determine the relative cost of service responsibilties of the several customer classifications within each operating district, based on considerations of quantity of water consumed, variability of rate of consumption, and costs associated with customer metering, billng and accounting. The allocation studies incorporated generally-accepted principles and procedures for allocating the several categories of cost to customer classifications in proportion to each classification's use of facilities, commodities and services required in providing water service. Case No. UWI-2-11-02 Exhibit No. 6 Page 1 P. Herbert ALLOCATION PROCEDURES The allocation studies were based on the Base-Extra Capacity Method for allocating costs to customer classifications. The method is described in the 2000 and prior editions of the Water Rates Manual published by the American Water Works Association. The four basic categories of cost responsibility are base, extra capacity, customer, and fire protection costs. The following discussion presents a brief description of these costs and the manner in which they were allocated. Base Costs are costs that tend to vary with the quantity of water used, plus costs associated with supplying, treating, pumping, and distributing water to customers under average load conditions, without the elements necessary to meet peak demands. Base costs were allocated to customer classifications on the basis of average daily usage. Extra Capacity Costs are costs associated with meeting usage requirements in excess of the average. They include operating and capital costs for additional plant and system capacity beyond that required for average use. The extra capacity costs in this study are subdivided into costs necessary to meet maximum day extra demand and costs to meet maximum hour extra demand. The extra capacity costs were allocated to customer classifications on the bases of each classification's maximum day and hour usage in excess of average usage. Customer Costs are costs associated with serving customers regardless of their usage or demand characteristics. Customer costs include the operating and capital costs related to meters and services, meter reading costs, and biling and collecting costs. The customer costs were allocated on the bases of the capital cost of meters and services, and the number of customers. Case No. UWI-2-11-02 Exhibit NO.6 Page 2 P. Herbert Fire Protection Costs are costs associated with providing the facilties to meet the potential peak demand of fire protection service. Fire Protection costs are subdivided into costs to meet Public Fire Protection and Private Fire Protection demands. The extra capacity costs assigned to fire protection service were allocated to Public and Private Fire Protection on the basis of the total relative demands of the hydrants and fire service lines, sized to provide fire protection. Since there are no public fire hydrant rates, public fire protection costs were reallocated to the general service classifications based on meter equivalents. RESULTS OF STUDY The results of the cost of service allocation study are set forth in Part II. The data summarized for each district in Schedule A, Comparison of Pro Forma Cost of Service with Revenues Under Present and Proposed Rates for the Test Year Ended April 30, 2011, constitute the principal results of the cost allocation studies and subsequent rate designs. The cost of service by customer classification shown in column 2 of Schedule A is developed in Schedule B, Cost of Service for the Twelve Months Ended April 30, 2011, Allocated to Customer Classifications. The allocation of the total cost of service to the several customer classifications was performed by applying the allocation factors referenced in column 2 of Schedule B to the cost of service set forth in column 3. The bases for the allocation factors are presented in Schedule C. Schedule D sets forth the experienced average day and maximum day system sendout and the maximum day ratios from 2001 through 2010. Schedule E presents the basis for allocating demand related costs of fire service to private and public fire protection classifications. Comparisons of present and proposed rates for each of the customer classifications are set forth in Schedule G. Case No. UWI-2-11-02 Exhibit NO.6 Page 3 P. Herbert PART II. COST OF SERVICE BY CUSTOMER CLASSIFICATION -Q)*-*-::::*-::*-0 0 0c:lJ (l ..0 (l (l N (l Q)lU ..0)0)cr 0)0),.0)Q) ~(J (l..-......N ......lJ Q)0lU a.E2?0c: "C M ..CO '"(l CO 10 Q)CO '"~M M N COlJë~..10 ~-CO I"M0:: ..",-ai c:.M c:'"eö e o CO 0 (l M ~CO N ..E-N 0 N 10 COa.0:iõ Ñ i-i-(JW ~~ ~ Cl lJ *-*-*-*-::W .!-0 en c:co co io M 0 lU Q) ..ex ex ci N ci0ii~,.a.-co N 0Q)..0 -g a.ii lJa.0 Cl ez '"0 ~10 co ..co 0:i:co 10 co M M M co--(l M_~'"(l 0 (lI-lJ c:N"c:C"ai N"Q):: ..0 ..Z ::o co 10 '"~10 N co ..w..c: E -M 0 0 '"..(len 0 ~ 0:..C"..iõ iõWNM..~~ii -Q)a. g ii ~~ Ü ii --z W- 0 Cl g: *-*-*-:: ~I Z 0:I/-c:0J::: Cl l ~ co co 10 .. oc (J W §:ex ex ci N0W Cl ii Q)co N ii ::z -i:c:w ZW (Ji-W ii I/ Q) ~~ oc ..~(l co co '"co inWwa.0 '"..(l (l 0 0ii )-w ë 10 ..M N N in coClJ: I-(J :: ..iõ ..in iõ iõ ..eöWI- (J ::o ~~'"0 ..M co (ll-s: W c: E '-..(l N co ....NZ~oc co-ci c:co::wi-Q)N ..M MOWii~~w-J:~ I-ii iiWoen u.-::::::*- ~I u.c:0 0 00~ 10 ~co 10..ci cO ci N~-M-'"N(J 8 Q)0 i:Ü '2:u.Q)0 (J00 10 co M ..'"..(lZ0M10McocoM..-..M ~co io 0_co08c:~eö iõ C"N"(J ::§: '"(l00~co 10 10 N co ..ii E N 0 N ..'"..(l oc 0:N"N"..iõ w iõi:M ..~~::~w0() Q)0 c:'2:lJ..0 :i Q)Q)Q) :¡I/ E ~,:en (J ::~..(i 0 (i c: .s !E ..(i .c Q)Q)0'-'ü -..en ::l-I/ lJ :¡..::u:Q)::lJ c:Q)oc (i iiü..(J E Q)-Ü "C ,2 -0 .. iii E :i lU I-(J 'IË .c Case No. UWI-W-11-02(J 0 ::-ii ü i:a.0 Exhibit No. 6 Schedule A Page 1 of 1 P. Herbert UN I T E D W A T E R I D A H O I N C . CO S T O F S E R V I C E F O R T H E l W E L V E M O N T H S E N D E D A P R I L 3 0 , 2 0 1 1 , A L L O C A T E D T O C U S T O M E R C l A S S I F I C A T I O N S Fa c t o r Co s t o f Pu b l i c Fi r e P r o t e o n Ac c u n t Re f . Se r v i c e Re s i d e n t i a l Co m m e r c l Au t h o r i i e s Pn v a t e Pu b l i c (1 ) (2 (3 ) (4 ) (5 ) (6 ) (7 ) (8 ) OP E R A T I O N A N D M A I N T E N A N C E E X P E N S E S SO U R C E O F S U P P L Y E X P E N S E S Op e r a t i n S u p e r v i s i o n a n d E n g i n e e r i n g . L a b o r 2 (2 , 0 4 8 ) (1 , 3 7 6 ) (6 5 3 ) (1 5 ) (1 ) (3 ) Op e r a t i o n S u p e r v i s i o n a n d E n g i n e e r i n g . O t e r 2 68 6 46 1 21 9 5 0 1 Op e r a t i o n S u p e r V i s i o n a n d E n g i n e e r i n g . F r i n g e B e n e f r t 2 3, 4 4 9 2, 3 1 6 1,0 9 9 26 2 6 Op e r a t i o n L a b o r 2 (6 3 , l 5 0 ) (4 2 , 4 1 2 ) (2 0 , 1 2 6 ) (4 6 7 ) (4 4 ) (1 0 1 ) Op e r a t i o n E x n s e 2 6, 9 3 2 4, 6 5 6 2,2 0 9 51 5 11 Op e r a t i n F r i n g e B e n e f i t s 2 23 , 4 2 3 15 , 7 3 1 7,4 6 5 17 3 16 37 Pu r c h a s e d W a t e r 1 13 2 , 9 4 7 86 . 4 6 9 44 , 9 3 6 83 8 21 3 49 2 Mi s c e l l a n e o u s 2 0 0 0 0 0 0 Re n t s 2 9, 6 2 6 6, 4 6 5 3,0 6 8 71 7 15 TO T A L S O U R C E O F S U P P L Y E X E N S E . O P E R A T I O N 11 1 , 8 6 6 72 , 3 1 0 38 , 2 1 7 68 2 19 8 45 8 Ma i n t e n a n c e o f S t r c t u r e s a n d E n g i n e e r i n g . L a b o r 2 15 , 2 3 0 10 , 2 2 8 4, 8 5 4 11 3 11 24 Ma i n t e n a n c e o f S t r u c t u r e s a n d E n g i n e e r i n g . O t h e r 2 4, 3 1 9 2, 9 0 0 1,3 7 6 32 3 7 Ma i n t e n a n c e o f S t r c t u r e s a n d E n g i n e e r i n g . F r i g e B e n e f t s 2 12 , 9 4 3 8, 6 9 3 4, 1 2 5 96 9 21 Ma i n t e n a n c e o f S t r u c t r e s a n d E n g i n e e r i n g . R i v e r s a n d I n t a k i 2 1. 6 5 7 1, 1 1 3 52 8 12 1 3 Ma i n t e n a n c e o f w e l s a n d S p r i n g s . C h e m i c l s 1 2, 2 9 1 1, 4 9 0 77 4 14 4 8 Ma i n t e n a n c e o f W e l l s a n d S p r i n g s 2 53 8 36 2 17 2 4 0 1 TO T A L S O U R C E O F S U P P L Y E X P E N S E . M A I N T E N A N C E 36 , 9 7 8 24 , 7 8 6 11 , 8 2 9 27 1 28 64 TO T A L S O U R C E O F S U P P L Y E X P E N S E 14 8 , 8 4 4 97 , 0 9 6 50 , 0 4 7 95 3 22 6 52 2 PU M P I N G E X P E N S E S Op e r a t i n S u p e r v i s i o n a n d E n g i n e e r i n g . L a b o r 3 (1 9 , 8 6 4 ) (1 2 , 4 8 8 ) (5 , 9 2 7 ) (1 3 9 ) (4 0 3 ) (9 0 6 ) Op e r a t i o n S u p e r v i s i o n a n d E n g i n e e r i n g . O t e r 3 9, 4 4 6 5, 9 3 9 2, 8 1 9 66 19 2 43 1 Op e r a t i S u p e r v i s i o n a n d E n g i n e e r i n g . F r i n g e B e n e f t s 3 72 , 9 4 4 45 , 8 6 0 21 , 7 6 6 51 1 1, 4 8 1 3, 3 2 6 Fu e l f o r P o w e r P r o c t i o n . L a b o r 3 51 32 15 0 1 2 Pu r e s e P o w e r 1 1,4 5 6 94 7 49 2 9 2 5 Fu e l f o r P o w r P r o u c i o n . O t h e r 3 13 8 4 0 0 1 Fu e l f o P o w e r P r o d n . F r i n g e B e n e t s 3 38 24 11 0 1 2 Po w e r P r o d u c n . L a b o r 3 1,0 5 8 66 5 31 6 7 21 48 "1 " 1 e n m ( " Po w e r P r o c t i o n . O l h e r 3 25 2 15 8 75 2 5 11 . l U O X I U Po w e r P r o u c t i o n . F r i n g B e n e s 3 90 9 57 1 27 1 6 18 41 :i 1 0 : : : : C I CD ( J ( J e T ( J Fu e l or P o w e r P u r s e f o r P u m p i n g . L a b o r 3 37 1 23 3 11 1 3 8 17 a- . . g . ; : Z Fu e l o r P o e r P u r c s e f o P u p i n . O t e r 3 54 34 16 0 1 2 CD O ë D Z O Fu e l or P o w e r P u r c s e f o r P u m p i n g . P o w e r C o s t s 1 1,5 9 4 , 8 0 4 1,0 3 7 , 2 6 1 53 9 , 0 4 4 10 , 0 4 7 2, 5 5 2 5,9 0 1 ;: - 0 ' Fu e l o r P o w e r P u r c h e f o r P u m p i n g . A m P o w e r C o s t s 1 30 6 , 8 0 4 19 9 , 5 4 5 10 3 , 7 0 0 1, 9 3 3 49 1 1, 1 3 5 mO J ' C Fu e l o r P o w e r P u r c a s f o r P u m p i n g . F r i n g e B e n e f i t s 3 24 5 15 4 73 2 5 11 m : : Pu m p i n g E x p e n s e . L a 3 31 1 , 2 0 2 19 5 , 6 5 3 92 , 8 6 3 2, 1 7 8 6,3 1 7 14 , 1 9 1 i Pu m p i n g E x p e n s e . O t h e r 3 13 3 , 9 1 7 84 , 1 9 4 39 , 9 6 1 93 7 2, 7 1 9 6, 1 0 7 ~ Pu m p i n g E x p e e e . F r i n g e B e n e r d s 3 22 9 , 8 1 8 14 4 , 4 8 7 68 , 5 7 8 1, 6 0 9 4,6 6 5 10 , 4 8 0 .. Mis c e l l a n e o s E x p e n d f t u r s 3 56 , 0 7 2 35 , 2 5 3 16 , 7 3 2 39 3 1, 1 3 8 2,5 5 7 .. TO T A L P U M P I N G E X P E N S E - O P E R A T I O N 2, 6 9 9 . 5 8 8 1,7 3 8 , 5 2 8 88 0 , 9 1 8 17 , 5 6 5 19 , 2 1 4 43 , 3 6 3 i0I\ Me i n t e r S u p r v i s i o a n d E n g i n r i n g . L a b o 3 8, 3 1 0 5. 2 2 4 2, 4 8 0 58 16 9 37 9 Ma i n t a n a c e S u p r v i s i o n a n E n g i n e e i n g . O t e r 3 1,5 5 7 97 9 46 5 11 32 71 Ma i n t e n e c e S u p i s i o a n E n g i n e e r i n g . F r i n g e B e n e f i s 3 6, 0 9 0 3, 8 2 9 1, 8 1 7 43 12 4 27 8 UN I T E D W A T E R I D A H O I N C . CO S T O F S E R V I C E F O R T H E T W E L V E M O N T H S E N D E D A P R I L 3 0 , 2 0 1 1 , A L L O C A T E D T O C U S T O M E R C L A S S I F I C A T I O N S Fa c t o r Co s t of Pu b l i c Fir e P r o t e c t i o n Ac c u n t Re f . Se r v i c e Re s i d n t i a l Co m m e r c i a l Au t h o r i e s Pr i v a t e Pu b l i c (1 ) (2 (3 ) (4 ) (5 ) (6 ) (7 ) (8 ) Ma i n t e n a n c e o f S t r u u r e s a n d I m p r o v e m e n t s . L a b o r 3 25 , 0 4 7 15 , 7 4 7 7, 4 7 4 17 5 50 8 1,1 4 2 Ma i n t e n a n c o f S t r u r e s a n I m p r o v e m a n t s . O t h r 3 12 1 , 7 6 4 76 , 5 5 3 36 , 3 3 4 85 2 2,4 7 2 5, 5 5 2 Ma i n t e n a n c o f S t r u r e s l ! n d I m p r o v e n t s . F r i n g e B e n e t s 3 20 , 2 0 3 12 , 7 0 1 6, 0 2 8 14 1 41 0 92 1 Ma i n t e n a n c e o f P o w e r P r o d u c t i o E q u i p m e n t . L a b o 3 25 5 16 0 76 2 5 12 Ma i n e n a n c o f P o w e r P r o d u c i o n E q u i p m e n t - O t h e r 3 11 , 9 2 6 7, 4 9 8 3,5 5 9 83 24 2 54 Ma i n e n a n c e o f P o w e r P r o d u c t i o E q u i p m e n t . F r i e B e n e f i t s 3 19 7 12 4 59 1 4 9 Ma i n t e n a n c e o f P u m p i n g E q u i p e n t . L a b o 3 21 4 , 4 7 4 13 4 , 8 4 0 63 , 9 9 9 1,5 0 1 4,3 5 4 9,7 8 0 Ma i n t e n a n c o f P u m p i g E q u i p m e n - O t h r 3 12 0 , 0 6 1 75 . 4 8 2 35 , 8 2 6 84 0 2, 4 3 7 5,4 7 5 Ma i n t e n a n c e o f P u m p i n g E q u i p m a n t . F r i n e B e n e f i t s 3 16 2 , 3 3 9 10 2 , 0 6 2 48 , 4 4 2 1,1 3 6 3, 2 9 5 7, 4 0 3 TO T A L P U M P I N G E X E N S E - M A I N T E N A N C E 69 2 , 2 2 0 43 5 , 1 9 9 20 6 , 5 5 9 4, 8 4 6 14 , 0 5 2 31 , 5 6 5 TO T A L P U M P I N G E X P E N S E S 3, 3 9 1 , 8 0 9 2, 1 7 3 , 7 2 7 1, 0 8 7 , 4 7 7 22 , 4 1 1 33 , 2 6 6 74 , 9 2 8 WA T E R T R E A l M E N T Op e r a t i n S u p e r v i o n a n d E n g i n e e r i n g . L a b o r 2 28 , 7 5 5 19 , 3 1 2 9, 1 6 4 21 3 20 46 Op e r a t i o n S u p e r v i s i o n a n d E n g i n e e r i . O t e r 2 5, 3 2 2 3, 5 7 4 1, 6 9 6 39 4 9 Op e r a t i o n S u p e r v i s i o n a n d E n g i n e e r i n g . F r i n g e B e n e f i t s 2 24 , 4 7 1 16 . 4 3 5 7, 7 9 9 18 1 17 39 Ch e m i c l s 1 27 6 , 9 2 0 18 0 , 1 0 9 93 , 5 9 9 1, 7 4 5 44 3 1, 0 2 5 Op e r a t i o n L a b o r a n d E x p a n s e . L a b o r 2 29 8 , 5 0 8 20 0 , 7 8 95 , 1 3 5 2. 2 0 9 20 9 47 8 Op e r a t i o n L a b o r a n d E x p e n s e . O t r 2 99 , 9 5 7 67 , 1 3 1 31 , 8 5 6 74 0 70 18 0 Op e r a t i L a b o r a n d E x p e n s e . L a b T e s t i n g 2 88 , 5 7 8 59 , 4 8 9 28 , 2 3 0 65 5 62 14 2 Op e r a t i n L a b o r a n d E x p e n s e . F r i n g e B e n e f i t s 2 24 3 , 4 4 8 16 3 , 4 9 9 77 , 5 8 7 1, 8 0 2 17 0 39 0 Am o r t a t i o n M i s c e l l a n e o u s 2 60 0 40 3 19 1 4 0 1 Mi s c e l l a n e u s E x p e n s e s . L a b o r 2 31 3 21 0 10 0 2 0 1 Mi s c l l a n e o u s E x n s e s . O t h r 2 20 , 7 2 0 13 , 9 1 5 6, 6 0 3 15 3 15 33 Mi s c l l a n e o u s E x p e n s e s . F r i n g e B e n e f i l 2 53 8 36 1 17 1 4 0 1 TO T A L W A T E R T R E A T M E N T E X P E N S E . O P E R A T I O N 1, 0 8 8 , 1 2 9 72 4 , 9 1 6 35 2 , 1 3 1 7, 7 4 8 1,0 1 1 2, 3 2 3 Ma i n t e n a n c e o f S u p e r v s i o n a n d E n g i n e e r i n g 2 24 16 8 0 0 0 Ma i n t e n a n c e o f S t r u c t u r e s a n d I m p r o v e m e n t s . L a b o r 2 62 , 7 9 1 42 , 1 7 1 20 , 0 1 2 46 5 44 10 0 Ma i n t e n a n c e o f S t r c t u r e s a n d I m p r o e m e n t s . O t e r 2 88 , 9 2 6 46 , 2 9 1 21 , 9 6 7 51 0 48 11 0 Ma i n t e n a n c o f S t r u c t u r e s a n d I m p r o v e m e n t s . L a b T e s t i n g 2 22 14 7 0 0 0 Ma i n t e n a n c e o f S t r c t r e s a n d I m p r o v e m e n t s . F r i n g e B e n e f l t i 2 45 , 2 5 9 30 , 3 9 6 14 , 4 2 4 33 5 32 72 iJ i J c n m n Ma i n t e n a n c e o f W a t e r T r e a t m n t E q u i p m e n t . L a b o r 2 32 , 4 8 2 21 , 8 1 5 10 , 3 5 2 24 0 23 52 . l l O X l l Ma i n t e n a n c e o f W a t e r T r e a t m e n t E q u i p m e n t - O t h e r 2 22 , 8 7 6 15 , 3 6 7,2 9 1 16 9 16 37 :i C O : : : : ( J CD C D C D c r C D Ma i n t e n a n c e o f W a t e r T r e a t m e n t E q u i p m e n t . F r i n g e B e n e f i l 2 26 , 1 6 4 17 , 5 7 2 8,3 3 9 19 4 lB 42 a- N ê " ; : Z TO T A L W A T E R T R E A T M E N T E X P E N S E . M A I N T E N A N C E 25 8 , 5 4 6 17 3 , 6 3 9 82 , 3 9 8 1, 9 1 3 16 1 41 4 CD O C D Z O TO T A L W A T E R T R E A l M E N T E X P E N S E 43 4 , 5 3 0 9, 6 6 1 1, 1 9 2 2, 7 3 6 ;: - O ' 1,3 4 6 , 6 7 4 89 8 , 5 5 6 mO J ' C m ~ TR N S M I S S I O N A N D D I S T R I B U T I O N E X P E N S E S i Op e r a t i o n S u p a r v s i o n a n d E n g i n e e r i n g . L a b o r 10 16 , 6 7 6 10 , 6 3 4 4, 9 3 4 10 5 30 9 69 4 ~ Op e r a t i o S u p e r v i s i o n a n d E n g i n e r i n g . O t h e r 10 12 , 9 3 3 8, 2 4 8 3, 8 2 7 81 23 9 53 8 i Op e r a t i o n S u p e r v i s i o n e n d E n g i n e e r i n g . F r i n g e B e n e f t s 10 55 , 3 8 B 35 , 3 2 1 16 , 3 8 9 34 9 1,0 2 5 2, 3 0 4 ~~ St o r a g e F a c U l t E x n s e 5 29 , 9 6 9 16 , 8 8 1 7, 9 0 3 18 9 1,5 4 0 3, 4 5 5 i Ma i n s E x p n s e . L a b o r 6 18 8 . 8 3 2 10 4 , 0 0 0 48 , 8 7 7 1, 1 4 8 4, 5 5 8 10 , 2 4 8 0N Ma i n s E x p e n s e - O t h e r 6 94 , 3 6 4 58 , 1 2 8 27 , 3 1 8 64 2 2, 5 4 8 5, 7 2 8 Ma i n s E x p e n s e . F r i n g e B e n e f i t s 6 24 0 . 7 3 9 14 8 , 2 9 5 69 , 6 9 4 1, 6 3 7 6, 5 0 0 14 , 6 1 3 Me t e r E x p a n s e - L a b o r 8 13 8 , 1 9 8 94 , 5 4 1 42 , 9 2 4 73 2 0 0 UN I T E D W A T E R I D A H O I N C . CO S T O F S E R V I C E F O R T H E T W E L V E M O N T H S E N D E D A P R I L 3 D , 2 0 1 1 , A L L O C A T E D T O C U S T O M E R C L A S S I F I C A T I O N S Fa c t o r Co s t o f Pu b l i c Fi r e P r o t e c n Ac c u n t Re f . Se r v c e Re s i d e n t i a l Co m m e r c a l Au t h o r i t i e s Pr i a t e Pu b l i c (1 ) (2 (3 ) (4 ) (5 ) (6 ) (7 ) -- Me t e r E x p e n s e . O t h e r 8 38 , 5 1 7 26 , 3 4 9 11 , 9 6 3 20 4 0 0 Me t e r E x p e n s e . F r i n g e B e n e f i t s 8 10 8 , 6 2 74 , 3 2 2 33 , 7 4 4 57 6 0 0 Mi s c l a n e o u s E x n s e - L a b o r 10 20 , 4 2 9 13 , 0 2 7 6, 0 4 5 12 9 37 8 85 0 Mis c e l l a n e o u s E x p e n s e - P u r c h a s e d P o w e r 1 28 8 , 5 6 4 18 7 , 6 8 2 97 , 5 3 5 1, 8 1 8 46 2 1, 0 6 8 Mi s c e l l a n e o u s E x p e n s e 0 O t h e r 10 5, 4 8 4 3, 4 9 7 1,6 2 3 35 10 1 22 8 Mi s c l l a n e o u s E x p e n s e 0 F r i n g e B e n e f 10 30 , 5 0 6 19 , 4 5 4 9, 0 2 7 19 2 56 4 1, 2 6 9 TO T A L T & D E X P E N S E O P E R A T I O N 1,2 4 9 , 2 3 8 80 0 , 3 7 9 38 1 , 8 0 3 7, 8 3 7 18 , 2 2 4 40 , 9 9 5 Ma i n t e n a n c e o f S u p e r v s i o n a n d E n g i n e e n g 11 0 0 0 0 0 Ma i n t e n a n c e o f S t r c t u r e s a n d I m p r o v e m e n t s . L a b o r 11 16 , 3 3 0 10 , 3 0 6 3,7 3 9 78 85 1 1. 3 5 5 Ma i n t e n a n c e o f S t c t u r e s a n d I m p r o v e m e n t s 0 O t h e r 11 5,4 4 0 3, 4 3 3 1, 2 4 6 26 28 3 45 2 Ma i n t e n a n c e o f S t r c t r e s a n d I m p r o v e m e n t s . F r i n g e B e n e f i t ! 1 1 20 , 1 9 3 12 , 7 4 4 4, 6 2 4 97 1, 0 5 2 1, 6 7 6 Ma i n t e n a n c e o f D i s t i b u t i o n R e s e r v o i r s a n d S t a n d p i p e s 5 45 , 5 8 3 25 , 6 7 7 12 , 0 2 0 28 7 2, 3 4 3 5, 2 5 6 Ma i n t e n a n c e o f T & D M a i n s . L a b o r 6 10 6 , 7 2 0 65 , 7 3 9 30 , 8 9 5 72 6 2,8 8 1 6, 4 7 8 Ma i n t e n a n c o f T & D M a i n s 0 O t h e r 6 12 9 , 6 4 8 79 , 8 6 3 37 , 5 3 3 88 2 3, 5 0 0 7, 8 7 0 Ma i n t e n a n c e o f T & D M a i n s 0 F r i n g e 6 16 1 , 0 1 9 99 , 1 8 8 46 , 6 1 5 1, 0 9 5 4,3 4 8 9, 7 7 4 Ma i n t e n a n c e o f s e r v i c e s - L a b o r 9 57 , 3 1 8 42 , 3 4 1 9,0 3 9 13 8 5,8 0 1 0 Ma i n t a n a n c e o f S e r v i c e s 0 O t h e r 9 12 3 , 0 1 1 90 , 8 6 8 19 , 3 9 9 29 5 12 , 4 4 9 0 Ma i n t e n a n c e o f S e r v i c e s o f r i n g e B e n e r i t a n d O t h e r 9 10 2 , 6 4 6 75 , 8 2 5 16 , 1 8 7 24 6 10 , 3 8 8 0 Ma i n t e n a n c o f M e t e r s . L a b o r 8 11 , 8 4 2 8, 1 0 1 3,6 7 8 63 0 0 Ma i n t e n a n c e o f M e t e r s - O t h e r 8 6, 6 7 9 4, 5 6 9 2,0 7 5 35 0 0 Ma i n t e n a n c o f M e t e r s . F r i n g e B e n e r i t 8 18 , 9 3 6 12 , 9 5 4 5, 8 8 2 10 0 0 0 Ma i n t e n a n c e o f H y d r a n t s . L a b o r 7 10 , 6 9 0 0 0 0 0 10 , 6 9 0 Ma i n t e n a n c e o f H y d r a n t s 0 O t e r 7 6, 5 6 8 0 0 0 0 6, 5 6 8 Ma i n t e n a n c e o f H y d r a n t s . F r i n g e B e n e f t s 7 19 , 8 4 2 0 0 0 0 19 , 8 4 2 Mi s c e l l a n e o u s 11 18 12 4 0 1 2 TO T A L T & D E X P E N S E . M A I N T E N A N C E 84 2 , 4 8 3 53 1 , 6 2 0 19 2 , 9 3 7 4, 0 8 9 43 , 8 9 7 69 , 9 6 1 TO T A L T & D E X P E N S E .2 , 0 9 1 , 7 2 1 1, 3 3 1 . 9 9 9 57 4 , 7 4 0 11 , 9 0 5 82 , 1 2 1 11 0 , 9 5 6 CU S T O M E R A C C O U N T S Su p e r v i s i o n . L a b o 12 15 5 , 0 1 4 13 4 , 4 1 3 15 , 4 5 5 18 8 4, 9 6 0 0 '" ' 1 e n m ( ' Tr a n s p o r t t i o n C o s t s . O t h e r 12 11 , 4 3 5 9, 9 1 5 1, 1 4 0 14 36 6 0 . l l ( ' X l l Su p e r v i s i o n - F r i n g e B e n e f i t s 12 95 , 5 0 2 82 . 8 1 0 9, 5 2 2 11 5 3, 0 5 6 0 :i t o : : : : C I CD C D ( 1 ¡ : ( 1 Me t e r R e a d i n g . L a b o r 13 23 4 , 5 3 4 21 0 , 0 7 2 24 . 1 5 7 30 5 0 0 àw ê - ; : z Me t e r R e a d i n g . O t h e r 13 86 , 9 2 8 77 . 8 6 0 8, 9 5 3 11 3 0 0 (1 O ë õ Z O Me t e r R e a d i n g . F r i n g e B e n e r i t 13 16 8 , 9 0 6 15 1 , 2 8 9 17 , 3 9 7 22 0 0 0 ;: - O ' Cu s t o m e r R e c o r d s a n d C o l l e c i o n . L a b o r 12 50 6 , 8 1 1 43 9 , 4 5 6 50 , 5 2 9 60 8 16 , 2 1 8 0 mO J ' C Cu s t o m e r R e c r d s a n d C o l l e c t i o n . O t h e r 12 92 2 , 9 3 8 80 0 , 2 7 9 92 , 0 1 7 1, 1 0 8 29 , 5 3 4 0 m : E Cu s t o m e r R e c r d s a n d C o l l e c n . F r i n g e B e n e f 12 35 9 , 3 0 0 31 1 , 5 4 9 35 , 8 2 2 43 1 11 , 4 9 8 0 i Un c l l e c i b l e A c c u n t s 12 24 3 , 0 8 1 21 0 , 7 7 6 24 , 2 3 5 29 2 7, 7 7 9 0 :E Mi s c l l a n e o u s O t h e r 12 2,9 0 2 1,7 3 8 20 0 2 64 0 i.... TO T A L C U S T O M E R A C C O U N T N G E X P E N S E 2, 7 8 6 , 4 4 9 2,4 3 0 , 1 5 5 27 9 , 4 2 7 3, 3 9 3 73 , 4 7 5 0 i0N AD M I N I S T R T I A N D G E N E R A L E X P E N S E S A& G L a b o r 14 1, 9 3 5 , 7 7 3 1, 4 1 2 , 7 2 7 42 2 , 3 8 6 8. 7 1 1 44 , 1 3 6 47 , 8 1 4 Fr i n g e B e n e f i t s T r a n s f e r r e d 16 (3 , 1 8 2 . 6 4 0 ) (2 , 3 2 4 , 9 1 9 ) (6 9 8 , 9 0 8 ) (1 4 , 3 2 2 ) (6 7 , 7 9 0 ) (7 6 , 7 0 2 ) UN I T E D W A T E R I D A H O I N C . CO S T O F S E R V I C E F O R T H E T W E L V E M O N T H S E N D E D A P R I L 3 0 , 2 0 1 1 , A L L O C A T E D T O C U S T O M E R C L A S S I F I C A T I O N S Fa c t r Co s t 01 Pu b l i c Fir e P r o t e c o n Ac c u n t Re f . Se r v i c e Re s i d e n t i a l Co m m e r c i a l Au t h o r i i e s Pr i v a t e Pu b l i c (1 ) (2 (3 ) (4 ) (5 ) (6 ) (7 ) (l! ) Em p l o y e e p e n s i o n c o s t 16 1, 3 8 8 , 9 2 1 1, 0 1 4 , 6 0 7 30 5 , 0 0 7 6, 2 5 0 29 , 5 8 4 33 , 4 7 3 Po s t R e t i r e H e a l t C a r e A c c e 16 40 9 , 0 2 2 29 8 , 7 9 1 89 , 8 2 1 1. 8 4 1 8.7 1 2 9, 8 5 7 Em p l o y e e g r o u p h e a l t h & l i f e 16 1, 1 1 0 , 5 6 2 81 1 , 2 6 6 24 3 , 8 8 0 4, 9 9 8 23 , 6 5 5 26 , 7 6 5 Em p l o y e e 4 0 1 K 16 12 4 , 0 9 4 90 , 6 5 1 27 , 2 5 1 55 8 2, 6 4 3 2. 9 9 1 Ot h e r e m p l o y e e b e n e f i t 16 59 , 8 3 1 43 , 7 0 6 13 , 1 3 9 26 9 1,2 7 4 1, 4 4 2 Oth e r A w a r d s 18 2, 0 3 8 1, 4 8 9 44 7 9 43 49 Ma t e r i a l s a n d S u p p l y s - A & G a n d C u s t o m e r C a r e s 14 11 3 , 8 2 6 83 , 0 7 0 24 , 8 3 7 51 2 2,5 9 5 2. 8 1 2 Ma n a g e m e n t F e e s - O t h e r 14 2, 0 9 3 , 4 5 1 1, 5 2 7 , 8 0 1 45 6 , 7 9 1 9. 4 2 1 47 . 7 3 1 51 , 7 0 8 Ma n a g e m e n t F e e s - C u s t o m e r R e l a t e d 12 95 , 0 6 9 82 , 4 3 4 9, 4 7 8 11 4 3,0 4 2 0 Ma n a g e m e n t F e e s - E m p l o y e e r e l a t e d 16 27 0 , 2 5 0 19 7 , 4 1 8 59 , 3 4 7 1, 2 1 6 5,7 5 6 6, 5 1 3 Co n t r a c t S e r i c e s 14 48 6 , 0 4 5 35 4 , 7 1 8 10 6 , 0 5 5 2,1 8 7 11 , 0 8 2 12 , 0 0 5 Re n t a l o f E q u i p m e n t 14 15 , 3 5 2 11 , 2 0 4 3, 3 5 0 69 35 0 37 9 Tr a n s p o r t t i E x p n s e 14 27 , 5 1 1 20 , 0 7 8 6, 0 0 3 12 4 62 7 68 0 In s u r a n c e - G e n e r l L i a i l i t 14 62 2 , 5 8 2 45 4 , 3 6 0 13 5 , 8 4 7 2, 8 0 2 14 , 1 9 5 15 , 3 7 8 In s u r a n c e - W o r k m a n ' s C o m p e n s a t i o n 16 14 3 , 7 0 0 10 4 , 9 7 3 31 , 5 5 8 64 7 3,0 6 1 3, 4 6 3 Ad v e r t i s i n g 14 13 8 , 0 7 8 10 0 , 7 8 9 30 , 1 2 9 82 1 3, 1 4 8 3, 4 1 1 Re g . C o m m i s s i o n E x p ( A m o r t a t i n ) 14 21 2 , 8 8 6 15 5 , 3 6 4 46 , 4 5 2 95 8 4, 8 5 4 5, 2 5 8 Ba d D e b t W r i e O f 16 (1 , 6 2 4 ) (1 , 3 3 3 ) (4 0 1 ) (8 ) (3 9 ) (4 4 ) Mi s c e l a n e o u s E x n s e s 14 35 0 , 3 1 1 25 5 , 8 5 7 76 , 4 3 6 1, 5 7 6 7,9 8 7 8, 6 5 3 TO T A L A & G E X P E N S E 6, 4 1 4 , 8 4 0 4,8 8 4 , 8 3 0 1, 3 8 8 , 9 0 6 28 , 5 5 3 14 6 , 6 4 7 15 5 , 9 0 4 To t a l O p e r a t i o n & M a i n t e n a n c e E x p e n a n 16 , 1 8 0 , 3 3 7 11 , 6 2 8 , 3 8 2 3, 8 1 5 , 1 2 6 76 , 8 7 5 31 6 , 9 2 7 34 5 , 0 4 7 DE P R E C I A T I O N E X P E N S E Wa t e r S o u r c S t r c t r e s 2 84 , 5 7 6 56 , 8 0 1 26 , 9 6 4 62 8 59 13 5 Co l l e c t i o n a n d I m p o u n d i n g R e s e r v o i r s 1 91 7 59 6 31 0 6 1 3 La k e s , R i v e r a n d O t h e r I n t a k e s 2 23 , 4 4 7 15 , 7 4 7 7, 4 7 3 17 4 16 38 we i l s & S p r n g s 2 20 6 , 7 5 2 13 8 , B 5 5 85 , B 9 2 1, 5 3 0 14 5 33 1 In f i l t r a t i o n G a l l e r i e s a n d T u n n e l s 2 1,2 0 7 81 1 38 5 9 1 2 Su p p l y M a l n s 2 41 , 5 0 6 27 . 8 7 5 13 , 2 2 8 30 7 29 66 ìJ ì J c n m o Pu r l q t i n B u i l d i n g s 2 31 1 , 6 7 3 20 9 , 3 2 0 99 , 3 3 0 2, 3 0 6 21 8 49 9 . i : ( ' X i : Po w e r G e n e r a t i o n E q u i p 3 12 9 , 4 0 7 81 , 3 5 8 38 , 6 1 5 90 6 2, 6 2 7 5,9 0 1 :i 1 O ~ ' ; e n El e c i c P u m p i n g E q u i p m e n t - S o u r c o f S u p p y 2 78 5 , 8 5 2 52 7 , 7 7 8 25 0 , 4 5 1 5, 8 1 5 55 0 1, 2 5 7 CD C D C D e T C D a- . r g - ; : Z Po w e r P u m p i n g E q u i p m t . W a t e r T r e a t m e n t 2 6, 4 1 3 4, 3 0 7 2, 0 4 4 47 4 10 CD O ë Ð Z O Po w e r P u m p i n g E q u i p m e n t . T r a n s . & D i s t r i b . 3 19 2 , 6 7 4 12 1 , 1 3 4 57 , 4 9 4 1, 3 4 9 3, 9 1 1 8, 7 8 6 ;: . . 0 ' Pu r i c a t i o n S y s t e m - T r e a t m e n t S t r c t u r e s 2 1. 3 8 5 , 8 2 7 93 0 , 7 2 1 44 1 , 6 6 3 10 , 2 5 5 97 0 2, 2 1 7 m( O ' C T& D S t r u r e s a n d I m p r o v e m e n t a 6 45 , 6 7 1 28 , 1 3 4 13 , 2 2 2 31 1 1,2 3 3 2, 7 7 2 m ~ Di s t r u t n R e s e r v o i r s a n d S t a n d p i p e s 5 16 3 , 4 8 3 92 , 0 9 0 43 , 1 1 0 1.0 3 0 8, 4 0 3 18 , 8 5 0 i Di s t r b u t i n M a i n s 4 85 8 . 5 2 5 52 4 , 6 4 5 24 5 , 7 1 0 5. 8 3 8 25 , 3 2 6 57 , 0 0 6 ~ Tr a n s m i s s i o n M a i n s 3 63 0 , 4 1 9 39 6 , 3 4 18 8 , 1 1 7 4, 4 1 3 12 . 7 9 7 28 , 7 4 7 i Se r v c e s 9 1, 0 7 3 , 7 5 2 79 3 , 1 8 1 16 9 , 3 3 1 2, 5 7 7 10 8 , 6 6 4 0 .... Me t e r a 8 36 4 , 8 7 0 24 9 , 6 0 8 11 3 , 3 2 9 1,9 3 4 0 0 i Hy d r a n t a 7 72 , 7 5 8 0 0 0 0 72 , 7 5 8 0N St r c t u r e s a n d I m p r o e m e n t s - G e n e r a l P l a n t 14 80 . 5 9 7 58 , 8 2 0 17 , 5 8 6 36 3 1, 8 3 8 1, 9 9 1 Of f c e F u m i t r e a n d E q u i p m e n t 14 15 0 , 5 2 8 10 9 , 8 5 5 32 , 8 4 5 67 7 3, 3 2 3, 7 1 8 Ci S Sy s t e m 12 79 6 ; 1 2 9 69 0 , 3 2 3 79 , 3 7 4 95 5 25 , 4 7 6 0 Tr a n s p o t i o n E q u i p m n t 14 0 0 0 0 0 0 i: i : e n m ( ) . Q ) O X Q ) :i t o : : : : e n (1 ( 1 ( 1 e T ( 1 i3 o i § - ; : Z (1 O ~ Z O ;: . . " ' O . mO J ' C 0) ~ ~-0-0Io'" UN I T E D W A T E R I D A H O I N C . CO S T O F S E R V I C E F O R T H E T W E L V E M O N T H S E N D E D A P R I L 3 0 , 2 0 1 1 , A L L O C A T E D T O C U S T O M E R C L A S I F I C A T I O N S Fa c t o r Co s t 01 Pu b l i c Fir e P r o t e c t i o n Ac c u n t Re f . Se r v c e Re s i d e n t i a l Co m m e r c i a l Au t h o r i t i e s Pr i v a t e Pu b l i c (1 ) "" (3 ) (4 ) (5 ) (6 ) (7 ) (8 ) St o r e s E q u i p m e n t 14 2, 1 2 9 1,5 5 4 46 5 10 49 53 To o l s a n d w o r k E q u i p m e n t 14 49 . 3 2 9 36 , 0 0 0 10 , 7 6 4 22 2 1,1 2 5 1, 2 1 8 La b o r a t o i y E q u i p m e n t 2 15 , 3 4 9 10 , 3 0 9 4, 8 9 2 11 4 11 25 Po w e r O p e r a t e d E q u i p m e n t 14 0 0 0 0 0 0 Co m m u n i c a t i o n E q u i p m e n t 14 16 3 . 0 7 8 11 9 , 0 1 4 35 , 5 8 4 73 4 3,7 1 8 4, 0 2 8 Mis c e l l a n e o u s E q u i p m e n t 14 0 0 0 0 0 0 Ot h e r T a n g i b l e P r o p e r t 14 47 , 4 9 0 34 , 6 5 8 10 , 3 6 2 21 4 1.0 8 3 1, 1 7 3 To t l D e p r e c i a t i o n E x p e n s e 7, 6 8 4 . 3 5 8 5, 2 5 9 , 8 3 8 1, 9 6 8 , 5 2 8 42 , 7 2 0 20 1 , 6 8 7 21 1 . 5 8 4 Am o r t i z a t i o n o f U t i l i t P l a n t A c q u i s t l o n 17 9, 3 6 6 6, 1 3 1 2,5 2 2 55 27 8 37 9 Am o i z t i o n o f R e l o t i o n E x p 16 4, 0 0 0 2, 9 2 2 87 8 18 85 96 Am o r t a t i o n - M i s l l a n e o u s 14 0 0 0 0 0 Am o r t a t i o n o f O P E B C o s t s 16 40 , 5 6 0 29 , 6 2 9 8. 9 0 7 18 3 86 4 97 7 Am o r t a t i o n o f L e g a l C o s t s 14 61 2 44 7 13 4 3 14 15 Am o r t o f A F U D C E q u i t G U 18 19 , 1 5 7 12 , 5 7 5 5, 1 4 0 11 3 56 3 76 6 To t l A m o r t z a t i o n s 73 , 6 9 6 51 , 7 0 4 17 . 5 8 1 37 2 1.8 0 4 2. 2 3 5 "" " " e n m ( ' . Q ) ( ' X Q ) :i c o : : : : ( J C1 C 1 C 1 õ ' C 1 .. . . a . - . 0" V I C . . Z C1 o ; ; z o ;: - " ' o ' mO J ' C en : E ~. -"-"iß UN I T E D W A T E R I D A H O I N C . CO S T O F S E R V I C E F O R T H E 1 W E L V E M O N T H S E N D E D A P R I L 3 0 , 2 0 1 1 , A L L O C A T E D T O C U S T O M E R C L A S S I F I C A T I O N S Fa c t o r Co s t 01 Pu b l i c Fir e P r o t e c t o n Ac c u n t Re f . Se r v i c e Re s i d e n t i a l Co m m e r c a l Au t h o r i i e s Pr i v a t e Pu b l i c (1 ) (2 (3 ) (4 ) (5 ) (6 ) (7 ) -- Ta x e s O t e r T h a n I n c o m e Re a l E s t a t e 18 1, 8 3 8 , 0 0 0 1, 2 0 6 , 4 6 3 49 3 , 1 3 5 10 , 8 4 4 54 . 0 3 7 73 . 5 2 0 Pa y r o l l T a x e $ 16 46 8 , 9 6 5 34 2 , 5 7 9 10 2 , 9 8 5 2, 1 1 0 9, 9 8 9 11 , 3 0 2 Fr a n c h i s e T a x 19 0 0 0 0 0 PU C A s s e s s m e n t 19 10 3 , 3 7 3 70 , 7 0 7 26 . 2 7 7 55 8 2, 6 1 5 3,2 1 5 To t a l T a x e s . O t e r T h a n I n c o m e 2,4 1 0 , 3 3 8 1, 6 1 9 , 7 4 9 62 2 , 3 9 8 13 , 5 1 3 66 , 6 4 1 88 , 0 3 7 In c o m e T a x e s 18 5,6 2 8 , 7 2 7 3, 8 2 5 . 9 7 6 1, 5 6 3 , 8 4 7 34 . 3 8 9 17 1 , 3 6 5 23 3 , 1 4 9 Ut l i t y I n c o m e A v a i l a b l e f o r R e t u r n 18 13 , 7 3 5 . 1 5 4 9,0 1 5 , 7 6 2 3, 8 8 5 , 1 4 4 81 , 0 3 7 40 3 , 8 1 4 54 9 , 4 0 7 To t a l e o i t o f S e r v i c e 45 . 9 1 2 , 6 1 9 31 . 3 9 9 , 3 9 1 11 , 6 7 2 , 6 2 4 24 8 , 9 0 7 1,1 6 2 . 2 3 9 1, 4 2 9 , 4 5 8 Le . . ; O t e r W e t e r R i v e n u e . Mi s c e l l e n e o u s S e r v i c e R e v e n u e 19 56 , 9 6 1 38 , 9 6 1 14 , 4 8 0 30 8 1, 4 4 1 1, 7 7 1 Fl r a H y d r a n t M e t e r R e n t a l R e v e n u e 19 12 3 , 9 7 0 84 , 7 9 6 31 , 5 1 3 66 9 3, 1 3 6 3,8 5 5 Te m p r a r y M e t e r C h a r g e 8 8, 1 0 0 5. 5 4 1 2, 5 1 6 43 0 0 To t a l O t h e r W a t e R e v e n u e . 18 9 , 0 3 1 12 9 , 2 9 8 48 , 5 0 9 1,0 2 0 4, 5 7 8 5, 6 2 7 To t a l C o a t o f S e r v i c e R e l a t e d t o Sa l e . o f W a t e r 45 , 7 2 3 , 5 8 7 31 , 2 7 0 , 0 9 2 11 . 8 2 4 , 1 1 6 24 7 . 8 8 7 1, 1 5 7 . 6 8 1 1, 4 2 3 , 8 3 1 Re a l l o c t i o n o f P u b l i c F i r e 20 97 4 , 0 4 3 44 2 , 2 4 2 7, 5 4 6 0 (1 , 4 2 3 , 8 3 1 ) To t a l $ 45 , 7 2 3 , 5 8 7 $ 32 , 2 4 4 , 1 3 5 $ 1 2 , 0 6 6 , 3 5 8 $ 25 5 , 4 3 3 $ 1,1 5 7 , 6 6 1 $ UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS FACTOR 1. ALLOCATION OF COSTS WHICH VARY WITH THE AMOUNT OF WATER CONSUMED. Factors are based on the pro forma test year average daily consumption for each customer classification. Average Daily Customer Consumption,Alloction Classification CCF Factor (1 )(2)(3) Residential 31,405 0.6504 Commercial 16,320 0.3380 Public Authority 303 0.003 Private Fire Protection 79 0.0016 Public Fire Protection 177 0.0037 Total 48,284 1.0000 FACTOR 2. ALLOCATION OF COSTS ASSOCIATED WITH FACILITIES SERVING BASE AND MAXIMUM DAY EXTRA CAPACITY FUNCTIONS. Factors are based on the weighting of the factors for average daily consumption (Factor 1) and the factors derived from maximum day extra capacity demand for each customer classification, as follows: Average Daily Maximum Day Consumption Extra Capacity Customer Allocation Weighted Allocation Weighted Allocation Classification Factor 1 Factor Factor Factor Factor (1)(2)(3)=(2)x (4)(5)=(4)x (6)=(3)+(5) 0.4348 0.5652 Residential 0.6504 0.2828 0.6879 0.3888 0.6716 Commercial 0.3380 0.1470 0.3038 0.1717 0.3187 Public Authority 0.0063 0.0027 0.0083 0.0047 0.0074 Private Fire Protection 0.0016 0.0007 0.0007 Public Fire Protection 0.0037 0.0016 0.0016 Total 1.0000 0.4348 1.0000 0.5652 1.0000 The derivation of the maximum day extra capacity factors in column 4 and the basis for the column 3 and 5 weightings are presented on the following page. Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 1 of 21 P. Herbert UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont. FACTOR 2. ALLOCATION OF COSTS ASSOCIATED WITH FACILITIES SERVING BASE AND MAXIMUM DAY EXTRA CAPACITY FUNCTIONS, cont Maximum Day Extra Capacity Average Daily Rate of Flow, Customer Consumption,CCF Allocation Classification CCF Factor*Per Day Factor (1 )(2)(3)(4)=(2)x(3)(5) Residential 31,405 2.0 62,810 0.6879 Commercial 16,320 1.7 27,744 0.3038 Public Authority 303 2.5 758 0.0083 Total 48,028 91,312 1.0000 The weighting of the factors is based on the maximum day ratio of 2.30, based on a review of maximum day ratios experienced during the period 2000 through 2010 (see Schedule D). Maximum Day Ratio Weight Average Day 1.00 0.4348 Maximum Day Extra Capacity 1.30 0.5652 Total 2.30 1.0000 .. Ratio of maximum day to average day minus 1.0. Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 2 of 21 P. Herbert cjza ~ 0:wi- ~owi-z:: 'Ê 8 eñzo ¡: () ¡¡ ëi 5() 0:w :E ~;:() ~w():;0:Weni.o ~o()oz 89..oc 0:ou. en0: § it ~ü ~ () ~ ~ ~ :E;: :E ~ w-ioz ~wen enw ¡::J ~ :zI- ~ow ~Üo ~oc . en enI- zen 00-() tu. zo ;:Z i.Q Ô ~ ¡: () () 9 ~ ~ ~0.C' w 0: 0: ~ ¡¡() 0 ~ ~ ~I; li;; -gco "Õc:coEli"0 €coa. ~ i::co"0 E:: E'xco E li;; ¿°a E::f/c: 8 :z ïii"0 li l? ¿li 0;: :¡co ~ 1i1; :; "= - co°õ01 ..c: li :¡ E.i °01_.- f/ ~ a1I.i.i 0_ coc: li0.2 -g "0 f/ c:co co.0 E ~ ~co c: IJ .2 .. 1)o Q)õ-co ei. a. "0.æ (;"§ õc: .- coo ~ u. ~e0.~ a '- ü: :-o~ ~ ~ æ.~ "0li ..- 0"6 õ~ :t '- coo ~ ~ i.E II :: ().§ II~ ~ 5 :E in :¡5o ~ 1! c: ïii .2o - 8i § l! II~ § .§oc () ii .ß ~o u ~ .. æ.;: r:c: "+o .. tò '_-o~ .g +'~ n;;: ìí §: ..)( ~~Oco .~O II E: N )( g¡~ io"" .~OII §: ..o Îi ~u. "0 .S 0'50.- co~ u. ..)( l:~""N 0~OII §: c:.. 0 ¡ ~ ~ 8 o!ü ~ ~ § ~ ~ c: c: c: c: c: ~ .. a ~ c: c: ~ ~ c: c: ~ ~ ~ c: c: c: ~ ~ ~ff g g c: c: c: ~ ~ § § § c: c: c: c: c: gßMCDt;ioMo8ooCD MOO c: c: c: c: c: c:.2 § -g 'B ~e ~ 15 0. èi (i (i ;; ~ Q)~ o~ ~ ~ ¡¡ :gEgiig m g .g of: .g 0: () 0. 0. 0. o § ~I ~I ~I lI ....o""c: g ~ l Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 3 of 21 P. Herbert UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont. FACTOR 3. ALLOCATION OF COSTS ASSOCIATED WITH FACILITIES SERVING BASE, MAXIMUM DAY EXTRA CAPACITY AND FIRE PROTECTION FUNCTIONS, cont. The weighting of the factors is based on the potential demand of general and fire protection service. The bases for the potential demand of general service are the maximum day ratio of 2.30 and the average daily system sendout for 2010 of 38.3 MGD. The system demand for fire protection is 10,000 Gallons per minute for 10 hours. Rate of Flow, Ratio (GPD)Weight Average Day 1.00 38,339,726 0.4071 Maximum Day Ext Capacity 1.30 49,841,644 0.5292 Subtotal 2.30 88,181,370 0.9363 Fire Protection 6,000,000 0.0637 Total 94,181,370 1.0000 The public and pnvate fire protection allocation factors in column 6 on the previous page are based on the relative potential demands (see Schedule E). Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 4 of 21 P. Herbert "f ã)..N 00 io oi 0..CO CO en CO 0 cn (l c:+(õ 00 0 N CO 0CI0..Cõ N 0 0 0 C!Z .. ~0 Ó Ó Ó Ó Ó0.e õ l:¡:"0 0 (l ::()c:~u.(l IIZE~::CIu."0 ~c:0 CO CO ~ Ü a;iooiio -a ~"0 en N CO$..0 0 0 0 () 0 Ó Ó Ó Ó0.-§ Õ x E ~c:.- (l ~~0 ~ u. 8 i¡:g ìí~CI CI êuisëZW"0 Q.0 ir c:(l ~ ~ ::c:..en ~I 0 i:ü:0 0 00 ..:i c: ~ 0 en(l õ E ('cou:~E .Q CD Ó Óëi::CI u. C/~"0 :; :5 ~:.13()~(l ~I "0."0 0 CO N N0~oi r-(;iowQl ..X io oi 0- 0cj~Z ~-§ õ ~ CO oi N 00c(5 io .Ó Ó ÓZx.- (l ~O a) lñ w 0 ~ ~ u.n C/Ql :i §:Cl;:II0::(a II E 0.0.:c ()"0 CD Cl::()ct 0 C)E E c: ~oi co 0 ~I ~Cl I-Z ::'x c:oi b 00::E X .2 ..w CD ~00 0 0:()"'x ~w ii §:co ('0 :§W ::W II 0 CD Ó Ó Ó(j E .Q u.CII-ir :;:5 ~ w (j CI C/W S c:0u.¡:¿"0Cl0:J 0 oi io 0 co oi en ~I QI W I-ë3 a x ..('io ..0 0 c:io co 00 0 0 0 'ê!:C/~E ~N ..0 0 0 00(' .ó ó ó ó óZ::~O B():i Ul .!QI::C)~ c:::"00Z0(I ~~CD0ïã ~I iow~0 ('co r-(.~ "0 co co (;('c:..0 CI 0 io ('0 0 E..ë3 Cl õ §:(0 ('0 0 0 ::..~CD Ó Ó Ó Ó ó "8c(0 Q)u.ir en ;,.E0C/(l c(CI f?u.SC/C/~ir I-Õ io 0 (0 ('oi ~0 C/a:Ó N er i-~0 Cl u...I-.S a:0 co ..~~ ().:(.~co 0u.Cl ()N-CD0:~Co.Z CD00Q)~ ~S ¿c:Xc: 0 ~ i:Ql()o :¡0 ..0 "0 ~c:U ::..Ql i¡...2 ~B 0..rJ .-QI ~i:.ictII rJ E e E.0 :ß ï::Q..2 ii or ãi 0 Q.::..~ 15 II ii)~ãi "ë :5 ~~Eir(l ..::II ."::¡¡'x0f? ~(.II i:QI c(¡¡IIÕQI$lI-o 0 :g E .2 II .2 E()õ-II E :õ ;::õ QI~II l/QI 0 ::;t ::.iu. 6 ir ()Q.Q.I- Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 5 of 21 P. Herbert UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont. FACTOR 4. ALLOCATION OF COSTS ASSOCIATED WITH FACILITIES SERVING BASE AND MAXIMUM HOUR EXTRA CAPACITY FUNCTIONS, cont. The weighting of the factors is based on the potential demand of general and fire protection service. The bases for the potential demand of general service are the maximum hour ratio of 3.60 and the average daily system sendout for 2010 of 38.3 MGD. The system demand for fire protection is 10,000 gallons per minute Prev study Rate of Flow, Ratio (GPM)Weight Average Hour 1.00 26,625 0.2514 Maximum Hour Extra Capacity 2.60 69,225 0.6540 Subtotal 3.60 95,850 0.9054 Fire Protection 10,000 0.0946 Total 105,850 1.0000 The maximum hour extra capacity factors in column 5 of the previous page are determined as follows: Average Hourly Maximum Hour Exta Capacity Customer Consumption 1,000 Gallons Allocation Classification Thousand Gal.Factor*Per Hour Factor (1)(2)(3)(4)=(2)x(3)(5) ,Residential 1,308.5 3.7 4,841.5 0.684 Commercial 680.0 3.2 2,176.0 0.3076 Public Authority 12.6 4.5 56.7 0.0080 Total 2,001.1 7,074.2 1.0000 * Ratio of Maximum Hour To Average Hour Minus 1.0. The public and private fire protection alloction factors in column 7 on the previous page are based on the relative potential demands (see Schedule E). Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 6 of 21 P. Herbert ""ã)I"..('..('0 Q)c I"..CO u;10 0 .satcg 10 10 0 ~0 l-E .2 ..tt N 0 0 ~a Q) 1j 0 0 0 0 0 0 ~""Ü +c .Q at ~at.2 :;u.Q.Ü II ~.!ê Q)e CI Q.i. l!"t i 0 ::i ~i¡Q) ..X u;Q)- 0 10 ~10 Š:5 ~g r:~0 ~~ ~c ~O 0 0 0 $3 8 ""~~ u.Jl $3c~at ~""cñ -ö .!z c 0-at0atC;;oi 0 1!~E l!0 ~(j 0 Q)u:~0 0 Ii""IS ..10 a at()0 0u:~0 CI ~::u. ei CI = ~ Q.l!at0 i¡()i."t co 10 i co ~I 'õii~Q) ..X N N ..~- 0 0 :;co 0 ""W -§ Ü ~ 10 ~0 10 c :¡..5 tt .0 0 0 0 at0.- at ~O0:i 0 Õ ~ U.ii E0!è~I-.s :i at Q)(f E "" cr E 1l ..0 :::i :i (.:i:i ()w E .~ l¡ 00E!!e:::10 0 .sc:'x 'X 0 ~ ..co ..Q I-..ai at ~ 00 0 0 w Õ E :¡w ê 10 ..0 10 ()c(CI 0 0 0 .20:Q).Q u.w 5=u.:5 :;""I-ii w ¿~ . ~w Cl(f ~0 :i U.~00 ....tt ..C1 ~i a- D 0 g E X ;;0 co 0 0 0 l! :i tt ..0 0 ;.w t¡rJ Ii ~N ~0 0 0 0 :l.. .0 0 0 0 0l-e:~O 0 Z 0 :i 8 ii atI-~Q.;:()~~BClz0:i Q)0 :5 ~w .s ~0 t'10 .. li~Q)5 00 co 0 ..'õ()~tt ..0 0õÜ10..0 0 0 00C-o 0 0 0 0 ;..0 CD at !!..::U. c(rJ 10 CDrJiic(Q):5 cD0:5 c CI ~0 10U.'õ ~ Q."t lD 0 co ...."" CI(f rJ CI C Ii ir 0 N C'i-Q) cii0cCle:ø ._ § ()E .Ii .Q ff 0 co ~Cl ~:i ãi ~10 .a 0U.CI e:00._ 0 t:Cl ø= c(Q) ~'- J2 u.z ~ B l! Q)0 Q) i¡o .s ¡:.s .-ü-- :l e:at e: ()e: at 0 C - 0o u tš í3 CD c0"" ..c :5 ~..ti Q)Q)_ 0 :¡0 i: ë ~..ø E ~ o .sc(CI 0 E i: 0-CI ø.a _~0-.5 .!!ió ! ~$3 !E ~~~ !ø lI ~~l!E ciiat 0 :i ø ë e ~ u:u:CI 00l! 13 ()at Q)'i~Õ Q)E u .!.!=ãi ~~I-o at :2 = at ;§()Ü ti ø E ~ :::ë .! .!it at ..Q)0 :i ri :iLL.2 IX ()0-0-I- B Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 7 of 21 P. Herbert UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont. FACTOR 5. ALLOCATION OF COSTS ASSOCIATED WITH STORAGE FACILITIES, cont. The weighting of the factors is based on the ratio of the capacity required for a 10 hour demand of fire flow, as related to total storage capacity. Fire not updated. Fire Protecton Weight =10,000 GPM X 60 Min. X 10 Hri 36,282,000 Gallons =0.1654 General Service Weight = 1.0000 0.1654 =0.834 The weighting of the average hourly consumption and maximum hour extra demand for general service is based on the maximum hour ratio, as follows: Maximum Hour Ratio Percent Weight Average Hour 1.00 27.78 0.2318 Exta Capacity Maximum Hour 2.60 72.22 0.6028 Total 3.60 100.00 0.8346 Average Hourly Maximum Hour Extra Capacity Customer Consumption 1,000 Gallons AlloCation Classification Thousand Gal.Factor*Per Hour Factor (1 )(2)(3)(4)=(2)x(3)(5) Residential 1,308.5 3.7 4,841.5 0.6844 Commercial 680.0 3.2 2,176.0 0.3076 Public Authority 12.6 4.5 56.7 0.0080 Total 2001.1 7074.2 1.0000 * Ratio of Maximum Hour To Average Hour Minus 1.0. Case No. UWI-W-11-02 Exhibit No. 6 Schedule C Page 8 of 21 P. Herbert UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont. FACTOR 6. ALLOCATION OF COSTS ASSOCIATED WITH TRANSMISSION AND DISTRIBUTION MAINS: Factors are based on the weighting of the maximum daily consumption with fire, Factor 3, and the maximum hour Maximum Daily Maximum Hourly Consumption wI Fire Consumption Customer Alloction Weighted Allocation Weighted Alloction Classification Factor 3 Factor Factor 4 Factor Factor (1)(2)(3)=(2)X (4)(5)=(4)X (6)=(3)+(5) 0.2756 0.7244 Residential 0.6287 0.1733 0.6111 0.4427 0.6160 Commercial 0.2984 0.0822 0.2862 0.2073 0.2895 Public Authont 0.0070 0.0019 0.0068 0.0049 0.0068 Private Fire Protecion 0.0203 0.0056 0.0295 0.0214 0.0270 Public Fire Protection 0.0456 0.0126 0.06 0.0481 0.0607 Total 1.0000 0.2756 1.0000 0.7244 1.0000 The weighting of the factors is based on the total footage of mains, designated as either transmission mains or distribution mains, as follows: Total Footage of Mains Weight Transmission Mains 1,734,195 0.2756 Distribution Mains 4,559,362 0.7244 Total 6,293,557 1.0000 Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 9 of 21 P. Herbert UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont. FACTOR 7. ALLOCATION OF COSTS ASSOCIATED \MTH FIRE HYDRANTS. Costs are assigned directly to Public Fire Protection. Customer Classification (1 ) Alloction Factor (3) Public Fire Protection 1.0000 Total 1.0000 FACTOR 8. ALLOCATION OF COSTS ASSOCIATED \MTH METERS. Factors are based on the relative costof meters by size and customer classification, as developed on the following page and summarized below. Customer 5/8" Dollar Allocation Classification Equivalents Factor (1 )(2)(3) Residential 109,934 0.6841 Commercial 49,918 0.3106 Public Authority 858 0.0053 Private Fire 0 0.0000 Total 160,710 1.0000 Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 10 of 21 P. Herbert UN I T E D W A T E R I D A H O I N C . BA S I S F O R A L L O C A T I N G M E T E R C O S T S T O C U S T O M E R C L A S S I F I C A T I O N S Re s i d e n t i a l Co m m e r c i a l Pu b l i c A u t h o r i t y To t a l Me t e r 5/ 8 " Nu m b e r of Nu m b e r o f Nu m b e r of Nu m b e r of Si z e Eq u i v a l e n t Me t e r s We i g h t i n g Me t e r s We i g h t i n g Me t e r s We i g h t i n g Me t e r s We i g h t i n g (1 ) (2 ) (3 ) (4 ) = ( 2 ) X ( 3 ) (5 ) (6 ) = ( 2 ) X ( 5 ) (1 3 ) (1 4 ) = ( 2 ) X ( 1 3 ) (1 5 ) (1 6 ) 5/ 8 1. 0 13 , 5 0 8 13 , 5 0 8 47 4 47 4 2 2 13 , 9 8 4 13 , 9 8 4 3/ 4 1. 5 53 , 3 9 9 80 , 0 9 9 2, 0 7 0 3, 1 0 5 9 14 55 , 7 8 83 , 2 1 8 1. 9 7, 2 3 4 13 , 7 4 5 2, 4 5 0 4, 6 5 5 31 59 9, 7 1 5 18 , 4 5 9 1- 1 / 2 6. 0 22 2 1, 3 3 2 1, 6 5 3 9, 9 1 8 19 11 4 1, 8 9 4 11 , 3 6 4 2 11 . 9 10 5 1, 2 5 0 1, 7 4 6 20 , 7 7 7 44 52 4 1, 8 9 5 22 , 5 5 1 3 51 . 1 0 13 0 6, 6 4 3 1 51 13 1 6, 6 9 4 4 94 . 1 0 40 3, 7 6 4 1 94 41 3, 8 5 8 -0 - 0 e n m ( ) 6 13 4 . 0 0 3 40 2 0 3 40 2 . m o X m :i ( Q : : : : C I (\ ( \ ( \ õ ' ( \ 8 18 0 . 0 1 18 0 0 1 18 0 a- - " g - ; : z (\ - " - Z O ;: O ( \ O ' To t a l 74 , 4 6 8 10 9 , 9 3 4 8, 5 6 7 49 , 9 1 8 10 7 85 8 83 , 1 4 2 16 0 , 7 1 0 - ( ) . C ~ e n : E ~i-"-"I0'" UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont. FACTOR 9. ALLOCATION OF COSTS ASSOCIATED WITH SERVICES. Factors are based on the relative cost of services by size and customer classification, as developed on the following page and summanzed below. Customer 3/4" Dollar Allocation Classification Equivalents Factor (1 )(2)(3) Residential 81,522 0.7387 Commercial 17,399 0.1577 Public Authority 263 0.0024 Pnvate Fire Protection 11,162 0.1012 Total 110,346 1.0000 Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 12 of 21 P. Herbert UN I T E D W A T E R I D A H O , I N C . BA S I S F O R A L L O C A T I N G S E R V I C E C O S T S T O C U S T O M E R C L A S S I F I C A T I O N S 3/ 4 " Re s i d e n t i a l Co m m e r c i a l Pu b l i c A u t h o r i t y Pr i v a t e F i r e P r o t e c t i o n To t a l Se r v i c e Do l l a r Nu m b e r of Nu m b e r of Nu m b e r o f Nu m b e r of Nu m b e r o f Si z e Eq u i v a l e n t Se r v i c e s We i g h t i n g Se r v i c e s We i g h t i n g Se r v i c e s We i g h t i n g Se r v i c e s We i g h t i n g Se r v i c e s We i g h t i n g (1 ) (2 ) (3 ) (4 ) = ( 2 ) X ( 3 ) (5 ) (6 ) = ( 2 ) X ( 5 ) (1 1 ) (1 2 ) = ( 2 ) X ( 1 1 ) (1 3 ) (1 4 ) = ( 2 ) X ( 1 1 ) (1 5 ) (1 6 ) 3/ 4 1. 0 0 66 , 9 0 7 66 , 9 0 7 2, 5 4 4 2, 5 4 4 11 11 0 0 69 , 4 6 2 69 , 4 6 2 1. 9 0 7, 2 3 4 13 , 7 4 5 2, 4 5 0 4, 6 5 5 31 59 0 0 9, 7 1 5 18 , 4 5 9 1- 1 / 2 2. 5 0 22 2 55 5 1, 6 5 3 4, 1 3 3 19 48 0 0 1, 8 9 4 4, 7 3 6 2 3. 0 0 10 5 31 5 1, 7 4 6 5, 2 3 8 44 13 2 0 0 1, 8 9 5 5, 6 8 5 3 3. 5 0 0 0 13 0 45 5 1 4 37 9 1, 3 2 7 51 0 1, 7 8 6 4- 1 2 In c h 8. 5 0 0 0 44 37 4 1 9 1, 1 5 7 9, 8 3 5 1, 2 0 2 10 , 2 1 8 To t a l 74 , 4 6 8 81 , 5 2 2 8. 5 6 7 17 , 3 9 9 10 7 26 3 1. 5 3 6 11 , 1 6 2 84 , 6 7 8 11 0 , 3 4 6 ìJ l H n m 0 . Q ) ( ' X Q ) .. c o : : : : e n eD C D C D õ ' r o o- - " g - ; : Z CD (¡r o zo ;: 0 O ' - ( ) . C ~ 0 ) ~ ~..-"IoN UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont. FACTOR 10. ALLOCATION OF TRANSMISSION AND DISTRIBUTION OPERATION SUPERVISION AND ENGINEERING AND MISCELLANEOUS EXPENSES. Factors are based on trnsmission and distrbuton opration expenses other than those being allocated, as follows: Transmission & Distribution Customer Operating Allocation Classification Expenses Factor (1)(2)(3) . Residential $522,517 0.6377 Commercial 242,423 0.2959 Public Authority 5,128 0.0063 Private Fire Protecion 15,147 0.0185 Public Fire Protecton 34,04 0.0416 Total 819,259 1.0000 FACTOR 11. ALLOCATION OF TRANSMISSION AND DISTRIBUTION MAINTENANCE SUPERVISION AND ENGINEERING, STRUCTURES AND IMPROVEMENTS, AND OTHER EXPENSES. Factors are based on transmission and distribution maintenance expenses other than those being allocated. as follows: Transmission & Distribution Customer Maintenance Alloction Classifcation Expenses Factor (1)(2)(3) Residential $505,126 0.6311 Commercial 183,323 0.2290 Public Authority 3,867 0.0048 Private Fire Protection 41,709 0.0521 Public Fire Protection 66,477 0.0830 Total $800,503 1.0000 Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 14 of 21 P. Herbert UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont FACTOR 12. ALLOCATION OF BILLING AND COLLECTING COSTS. Factors are based on the total number of customers. Customer Total Allocation Classification Customers Factor (1)(2)(3) Residential 74,468 0.8671 Commercial 8,567 0.0997 Public Authority 107 0.0012 Private Fire Protection 2,748 0.0320 Public Fíre Protection 0 0.0000 Total 85,890 1.0000 FACTOR 13. ALLOCATION OF METER READING COSTS. Factors are based on the number of metered customers. Customer Total Metered Allocation Classification Customers Factor (1 )(2)(3) Residential 74,468 0.8957 Commercial 8,567 0.1030 Public Authority 107 0.0013 Total 83,142 1.0000 Case No. UWI-W-11-02 Exhibit No. 6 Schedule C Page 15 of 21 P. Herbert UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont FACTOR 14. ALLOCATION OF ADMINISTRATIVE AND GENERA EXPENSES Factors are based on the alloction of all oter operation and maintenance expenses excluding purchased water, power, and chemicals. Operation & Customer Maintenance Alloction Classification Expenses Factor (1)(2)(3) Residential $5,325,989 0.7298 Commercial 1,591,851 0.2182 Public Authority 32,770 0.00 Private Fire Protection 166,330 0.0228 Public Fire Protecon 180,009 0.0247 Total $7,296,949 1.~~ FACTOR 15. ALLOCATION OF CASH WORKING CAPITAL Factors are based on the allocation of all operation and maintenance expenses including purchased water, power, and chemicals. Operation & Customer Maintenance Alloction Classification Expenses Factor (1)(2)(3) Residential $11,626,362 0.7185 Commercial 3,815,126 0.2358 Public Authority 76,875 0.0048 Private Fire Protection 316,927 0.0196 Public Fire Protection 345,047 0.0213 Total $16,180,337 1.0000 Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 16 of 21 P. Herbert UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont. FACTOR 16. ALLOCATION OF LABOR RELATED TAXES AND BENEFITS. Factors are based on the allocation of direct labor expense. Customer Direc Labor Alloction Classification Expense Factor (1)(2)(3) Residential $3,135,850 0.7305 Commercial 942,901 0.2196 Public Autority 19,474 0.005 Private Fire Protection 91,333 0.0213 Public Fire Protection 103,390 0.0241 Total $4,292,949 1.000 FACTOR 17. ALLOCATION OF ORGANIZATION, FRANCHISES AND CONSENTS, MISCELLANEOUS INTANGIBLE PLANT AND OTHER RATE BASE ELEMENTS. Factors are based on the allocation of the original cost less depreciation other than those items being allocted, as follows: Original Customer Cost Less Alloction Classification Depreciation Factor (1)(2)(3) Residential $105,978,945 0.654 Commercial 43,609,488 0.2693 Public Authority 958,860 0.0059 Private Fire Protecion 4,812,760 0.0297 Public Fire Protection 6,561,433 0.0405 Total $161,921,486 1.~~ Case No. UWI-W-11-02 Exhibit No.6 Schedule C Page 17 of 21 P. Herbert UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont. FACTOR 18. ALLOCATION OF INCOME TAXES AND INCOME AVAILABLE FOR RETURN. Factors are based on the alloction of the original cost measure of value rate base as shown on the following pages and summarized below. Onginal Customer Cost Measure Allocation Classification of Value Factor (1)(2)(3) Residential $106,948,207 0.656 Commercial 43,720,237 0.268 Public Authorit 959,523 0.0059 Private Fire Protecion 4,794,119 0.0294 Public Fire Protecton 6,509,870 0.04 Total $162,931,957 1.~~ FACTOR 19. ALLOCATION OF REGULATORY COMMISSION EXPENSES, ASSESSMENTS At OTHER WATER REVENUES. The factors are based on the allocation of the total cost of service, excluclng those items being allocated. Customer Total Cost Allocation Classification of Service Factor (1 )(2)(3) Residential $31,328,684 0.6840 Commercial 11,646,347 0.2542 Public Authority 248,349 0.0054 Private Fire Protection 1,159,623 0.0253 Public Fire Protecton 1,426,243 0.0311 Total $45,809,246 1.0000 Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 18 of 21 P. Herbert UN I T E D W A T E R I D A H O I N C . CO S T O F S E R V I C E F O R T H E T W E L V E M O N T H S E N D E D A P R I L 3 0 , 2 0 1 1 , A L L O C A T E D T O C U S T O M E R C L A S S I F I C A T I O N S Fa c t o r Co s t o f Pu b l i c Fi r e P r o t e c t i o n Ac c u n t Re f . Se r v i c e Re s i d e n t i a l Co m m e r c i a l Au t h o r i e s Pr i v a t e Pu b l i c (1 ) (2 (3 ) (4 ) (5 ) (6 ) (7 ) (8 ) RA T E BA S E Or g a n i z a t i o n 17 $ 91 , 0 5 9 $ 59 , 6 0 7 $ 24 , 5 2 2 $ 53 7 $ 2, 7 0 4 $ 3, 6 8 8 Fr a n c h i s e s a n d C o n s e n t s 17 - - . - - So u r c e o f S u p p l y - L a n d a n d L a d R i g h t s 2 7, 1 8 6 , 9 4 0 4, 8 2 6 , 7 4 9 2, 2 9 0 , 4 7 8 53 , 1 8 3 5.0 3 1 11 , 4 9 9 Wa t e r S o u r c S t r c t u r e s 2 3,1 2 0 , 4 6 4 2, 0 9 5 , 7 0 4 99 4 . 4 9 2 23 , 0 9 1 2, 1 8 4 4, 9 9 3 Co l l e c o n a n d I m p o u n d i n g R e s e r v i r s 1 (2 3 7 , 1 9 9 ) (1 5 4 , 2 7 4 ) (8 0 , 1 7 3 ) (1 , 4 9 4 ) (3 8 0 ) (8 7 8 ) La k e s , R i v e r a n d O t h e r I n t a k e s 2 86 0 , 3 4 2 57 7 , 8 0 6 27 4 . 1 9 1 6, 3 6 7 60 2 1,3 7 7 We l l s & S p r i n g s 2 6.4 7 1 , 7 2 2 4, 3 4 6 , 4 0 8 2, 0 6 2 , 5 3 8 47 , 8 9 1 4,5 3 0 10 , 3 5 5 In f l t r a t i o n G a l l e r i e s a n d T u n n e l s 2 24 , 2 6 0 16 , 2 9 3 7, 7 3 2 18 0 17 39 So u r c o f S u p p l . P l a n t 2 1,8 4 2 , 9 6 1 1, 2 3 7 , 7 3 3 58 7 , 3 5 2 13 , 6 3 8 1, 2 9 0 2, 9 4 9 wa t e r T r e a t m e n t - L a n d a n d L a n d R i g h t s 2 83 1 , 8 2 3 55 8 , 6 5 2 26 5 , 1 0 2 6, 1 5 5 58 2 1, 3 3 1 Pu r i f c a t i o n B u i l d i n g s 2 12 , 3 0 8 , 8 4 9 8,2 6 6 , 4 8 9 3, 9 2 2 , 7 6 6 91 , 0 8 4 8, 6 1 6 19 , 6 9 4 Po w e r G e n e r a t i o n E q u i p 3 1, 9 4 6 , 5 1 3 1, 2 2 3 , 7 7 3 58 0 , 8 4 0 13 . 6 2 6 39 , 5 1 4 88 , 7 6 1 Ele c t r c P u m p i n g E q u i p m e n t . S o u r c e o f S u p p l y 2 6,3 1 2 , 8 4 8 4, 2 3 9 , 5 7 4 2, 0 1 1 , 8 4 1 46 , 7 1 4 4, 4 1 9 . 10 . 1 0 0 El e c c P u m p i n g E q u i p m e n t . W a t e r T r e a t m e n t 2 12 3 , 0 3 1 82 , 6 2 8 39 , 2 1 0 91 0 86 19 7 El e t r l c P u m p i n g E q u i p m e n t - T r a n s m i s s i o n a n d D i s t i r b i o n 3 3, 1 1 8 , 6 7 8 1, 9 6 0 , 7 1 3 93 0 , 6 1 3 21 , 8 3 1 63 , 3 0 9 14 2 , 2 1 2 Pu r i f c a t i n S y s t e m . T r e a t m e n t S t r c t u r e s 2 12 , 8 6 7 , 8 7 1 8,6 4 2 , 0 6 2 4,1 0 0 , 9 9 1 95 , 2 2 2 9,0 0 8 20 , 5 8 9 T & 0 . L a n d a n d L a n d R i g h t s 6 58 3 , 0 6 0 35 9 , 1 6 5 16 8 , 7 9 6 3, 9 6 5 15 , 7 4 3 35 , 3 9 2 T& D S t r u c t u r e s a n d I m p r o v e m e n t s 6 2, 0 0 5 , 6 9 3 1, 2 3 5 , 5 0 7 58 0 , 8 4 8 13 , 6 3 9 54 , 1 5 4 12 1 , 7 4 6 Di s t r i b u t i o n R e s e r v o i r s a n d S t a n d p i p e s 5 6, 0 9 8 , 3 9 4 3,4 3 5 , 2 2 5 1, 6 0 8 , 1 4 6 38 , 4 2 0 31 3 , 4 5 7 70 3 , 1 4 5 Di s t r b u t i o n M a i n s 4 27 , 3 9 7 , 5 9 5 16 , 7 4 2 , 6 7 0 7,8 4 1 , 1 9 2 18 6 , 3 0 4 80 8 , 2 2 9 1,8 1 9 , 2 0 0 Tr a n s m i s s i o n M a i n s 3 20 , 1 1 8 , 1 7 8 12 , 8 4 8 , 2 9 9 6, 0 0 3 , 2 8 4 14 0 , 8 2 7 40 8 , 3 9 9 91 7 . 3 8 9 Se r v i c e s 9 28 , 9 6 7 , 0 9 8 21 , 3 9 7 , 9 9 5 4,5 6 8 , 1 1 1 69 , 5 2 1 2, 9 3 1 , 4 7 0 Me t e r s 8 11 , 1 5 0 , 5 7 1 7, 6 2 8 , 1 0 5 3, 4 6 3 , 3 6 7 59 , 0 9 8 - Hy d r a n t s 7 2, 4 9 6 , 9 0 7 0 0 0 0 2, 4 9 6 , 9 0 7 Ge n e r a l L a n d a n d L a n d R i g h t s 14 21 3 , 3 8 3 15 5 , 7 2 7 46 , 5 6 0 96 0 4,8 6 5 5, 2 7 1 Of i c e B u i l d i n g s 14 2, 2 7 2 , 3 1 5 1, 6 5 8 , 3 3 6 49 5 , 8 1 9 10 . 2 2 5 51 , 8 0 9 56 , 1 2 6 Of f c e F u r n i t u r e a n d E q u i p m e n t 14 2, 0 6 8 , 3 6 0 1, 5 0 9 , 4 8 9 45 1 , 3 1 6 9,3 0 8 47 , 1 5 9 51 , 0 8 9 Tr a n s p o r t t i o n E q u i p m e n t 14 (1 1 , 1 8 9 ) (8 , 1 6 5 ) (2 , 4 4 1 ) (5 0 ) (2 5 5 ) (2 7 6 ) Sto r e s E q u i p m e n t 14 2,0 2 7 1,4 7 9 44 2 9 46 50 To o l s a n d w o r k E q u i p m e n t 14 28 4 , 0 4 20 7 , 2 9 5 61 , 9 7 8 1. 2 7 8 6, 4 7 6 7, 0 1 6 La b o r a t o r y E q u i p m e n t 2 77 , 7 4 6 52 , 2 1 4 24 . 7 7 8 57 5 54 12 4 "' " ' e n m ( ) Po w e r O p e r a t e d E q u i p m e n t 14 (1 1 , 4 6 2 ) (8 , 3 6 5 ) (2 , 5 0 1 ) (5 2 ) (2 6 1 ) (2 8 3 ) . Q ) O X Q ) Co m m u n i c a t i o n E q u i p m e n t 14 1, 4 5 6 . 9 9 4 1, 0 6 3 , 3 1 4 31 7 . 9 1 6 6, 5 5 6 33 , 2 1 9 35 , 9 8 8 :: t o = r = r C 1 (1 ( 1 ( 1 ¡ : ( 1 Mi s c l l a n e o u s E q u i p m e n t 14 (2 6 , 9 3 2 ) (1 9 , 6 5 5 ) (5 . 8 7 7 (1 2 1 ) (6 1 4 ) (6 6 5 ) a- - i g . : = Z Ot h e r T a n g i b l e P r o p e r t 17 1, 2 2 9 , 6 3 8 80 4 , 9 2 1 33 1 , 1 4 1 7,2 5 5 36 , 5 2 0 49 , 8 0 0 CD ( O a r Z O To t a l U t i l i t P l a n t i n S e r v 16 3 , 2 4 2 , 1 8 2 10 6 , 8 4 3 , 4 7 3 43 . 9 6 5 , 1 5 1 ~M 5 2 4,8 5 1 . 9 8 5 6, 6 1 4 , 9 2 1 ;: 0 O ' - ( ) . C ~ C J ~ I~I-i-"i0N "" " " ( f m ( ) . W 0 x W :i ( Q : : : : ( I (1 ( 1 (1 ¡: ( 1 i3 N ê " ; : Z (1 0 ( 1 - Z 0 ;: 0 O ' .. 0 . C ~ ( J : : i ~....6N UN I T E D W A T E R I D A H O I N C . CO S T O F S E R V I C E F O R T H E T W E L V E M O N T H S E N D E D A P R I L 3 D , 2 0 1 1 , A L L O C A T E D T O C U S T O M E R C L A S S I F I C A T I O N S Fa c t o r Co s t of Pu b l i c Fir e P r o t e c t i o n Ac c u n t Re f . Se r v i c e Re s i d e n t i a l Co m m e r c i a l Au t h o r i s Pr i v a t e Pu b l i c (1 ) (2 (3 ) (4 ) (5 ) (6 ) (7 ) (8 ) Ot e r R a t e B a s e I t m s Ut i l i t 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 17 52 4 , 0 0 8 34 3 , 0 1 5 14 1 , 1 1 5 3,0 9 2 15 . 5 6 3 21 , 2 2 2 Pr e - 1 9 7 1 I n v e s t m e n t T a x C r e d i t s 17 (5 , 5 6 8 ) (3 , 6 4 ) (1 , 4 9 9 ) (3 3 ) (1 6 5 ) (2 2 5 ) De f e r r d C h a r g e s i n c l u d e d I n R a t e B a s e 17 2,5 4 0 , 9 3 0 1,6 6 3 . 2 9 3 68 4 , 2 7 3 14 , 9 9 1 75 , 4 6 6 10 2 , 9 0 8 Wo r k i n g C a p i t l A l i l o n c e 15 4.8 1 7 . 0 1 8 3, 4 6 1 , 0 2 8 1, 1 3 5 , 8 5 3 23 . 1 2 2 94 , 4 1 4 10 2 , 6 0 2 De f e r r I n c o m e T a x e s 17 (8 . 1 8 6 , 6 1 5 ) (5 , 3 5 8 . 9 5 8 ) (2 . 2 0 4 . 6 5 5 ) (4 8 . 3 0 1 ) (2 4 3 , 1 4 2 ) (3 3 1 . 5 5 8 ) To t a l O t h e r R a e B e s e E l e e n t s (3 1 0 . 2 2 6 ) 10 4 . 7 3 4 (2 4 4 , 9 1 4 ) (7 , 1 2 9 ) (5 7 , 8 6 6 ) (1 0 5 , 0 5 1 ) To t l O r i g i n a l C o s t M _ u r e o f V a l u e $ 1 6 2 . 9 3 1 , 9 5 7 $ 1 0 6 , 9 4 8 , 2 0 7 $ 4 3 , 7 2 0 , 2 3 7 $ 95 9 . 5 2 3 $ 4, 7 9 4 . 1 1 9 $ 6 . 5 0 9 , 8 7 0 UNITED WATER IDAHO INC. FACTORS FOR ALLOCATING COST OF SERVICE TO CUSTOMER CLASSIFICATIONS, cont. FACTOR 20. REALLOCATION OF PUBLIC FIRE Factors are based on the relative cost of meters by size and customer classification. Customer 5/8" Dollar Alloction Classification Equivalents Factor (1)(2)(3) Residential 109,934 0.681 Commercial 49,918 0.3106 Public Authorit 858 0.0053 Private Fire 0 0.~~ Total 160,710 1.~~ Case No. UWI-W-11-02 Exhibit NO.6 Schedule C Page 21 of 21 P. Herbert Year (1 ) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 UNITED WATER IDAHO INC. SUMMARY OF AVERAGE DAILY SEND OUT AND MAXIMUM DAILY USAGE FOR THE YEARS 2001-2010 Average Daily Send out (MGD) (2) 43.72 43.47 43.04 42.59 40.49 42.37 44.64 42.34 40.08 38.34 MGD (3) 84.661 94.553 94.061 85.972 93.758 92.221 91.075 84.887 84.285 82.567 Maximum Daily Use Ratio to Average (4) 1.94 2.17 2.19 2.02 2.32 2.18 2.04 2.00 2.10 2.15 Highest Use Day (5) 8/15 7/12 7/23 7/14 7/22 7/26 7/6 7/11 7/27 7/25 Case No. UWI-W-11-02 Exhibit NO.6 Schedule D Page 1 of 1 P. Herbert UNITED WATER IDAHO INC. BASIS FOR ALLOCATING DEMAND RELATED COSTS OF FIRE SERVICE TO PRIVATE AND PUBLIC FIRE PROTECTION CUSTOMER CLASSIFICATIONS Restrictive Diameters Relative Allocation Description Squared Quantity Demand*Factor (1)(2)(3)(4)=(2)x(3)(5) PRIVATE FIRE PROTECTION Fire Lines 3 -inch 9.00 379 3,411 4 -inch 16.00 504 8,06 6 -inch 36.00 500 18,000 8 -inch 64.00 137 8,768 10 -inch 100.00 10 1,000 12 -inch 144.00 6 86 Sprinkler 9.00 1 9 Private Hydrants 20.70 1,211 25,071 Total Private Fire Protection 2748 65,187 0.3081 PUBLIC FIRE PROTECTION Hydrant Nozzle Sizes 4.5"Valve 2- 2-1/2" & 1-4.5"20.70 7,070 146,367 Total Public Fire Prorecion 7,070 146,367 0.6919 Total Fire Protection 9,818 211,554 1.0000 Case No. UWI-W-11-02 Exhibit NO.6 Schedule E Page 1 of 1 P. Herbert UNITED WATER IDAHO INC. CALCULATION OF BI-MONTHL Y CUSTOMER COST FOR A 5IB-INCH METR Cost Per Cost Per 5/8-inch Cost of Total 5/8-inch Meter Cost Function Service Units Meter Bi-Monthly Bil (1)(2)(3)(4)(5) Meters 2,610,749 160,710 5/8-inch Equivalents $16.25 $2.71 Services 4,880,084 99,184 314-inch Equivalents 49.20 $8.20 Billng, Collecting and Meter Reading 6,787,338 83,142 Customers 81.64 $13.61 Subtotal Cu~omer Co~s $14,278,171 24.52 Unrecovered Public Fire 1,423,831 160,710 518inch Equivalents 8.86 1.48 Total Customer Costs and Public Fire $15,702,002 $26.00 Case No. UWI-W-11-02 Exhibit No. 6 Schedule F Page 1 of 1 P. Herbert III. COMPARISON OF PRESENT AND PROPOSED RATES UNITED WATER IDAHO INC. COMPARISON OF PRESENT AND PROPOSED RATES Bi-Monthly Customer Present Proposed Percentage Charge Rates Rates Increase 5/8"$18.10 $23.20 28.2% 3/4"18.10 23.20 28.2% 1"23.79 29.70 24.8% 1-112"38.55 50.80 31.8% 2"55.65 78.70 41.4% 3"102.23 153.60 50.2% 4"162.71 286.50 76.1% 6"313.15 478.40 52.8% 8"472.39 625.80 32.5% 10"660.37 900.61 36.4% Present Proposed Percentage Consumption Charge Rates.Rates.Increase Winter Rates Up to 3 CCF $1.35210 $1.57100 16.2% Over3CCF 1.35210 1.57100 16.2% Summer Rates Up to 3 CCF 1.35210 1.57100 16.2% Over 3 CCF 1.69020 1.96390 16.2% · PerCCF Flat Rate $72.36 $86.75 19.9% Private Fire Monthly Monthly Present Proposed Percentage Size Rates Rates Increase 3" and Smaller $15.84 $20.59 30.0% 4"24.01 31.21 30.0% 6"59.63 77.52 30.0% 8"97.98 127.37 30.0% 10"152.80 198.64 30.0% 12"228.87 297.53 30.0% Case No. UWI-W-11-02 Exhibit No. 6 Schedule G Page 1 of 1 P. Herbert