HomeMy WebLinkAbout20140928Wyatt Direct.pdfGOPY
Dean J. Miller (ISB No. 1968)
Chas. F. McDevitt 0SB No. 835)
Celeste K. Miller (ISB No. 2590)
McDEVTIT & MILLER LLP
420 West Bannock Steet
P.O. Box 2564-83701
Boise, D 83702
Tel: 208.343.7500
Fax: 208.336.6912
j o@mcdevitt'miller. com
chas@mcdevitt-miller. com
ck@mcdevitt-mill er. com
Attorneyfor United Water ldaho Inc.
IN THE MATTER OF THE JOINT
APPLICATION OF' UNITED WATER
IDAHO NC., AND BRIAI\ SUBDTVISION
WATER USERS ASSOCIATION FOR
APPROVAL OF AII AMENDMENT TO
CERTIFICATE OF'PUBLIC
CONVENIENCE AND NECESSITY NO.
143; APPROVAL OF AN AGREEMENT
FOR CONNECTION AND TRANSFER OF
WATER SYSTEM; APPROVAL OF
RATES AND CIIARGES
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
Case No. UWI-W-14-01
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
DIRECT TESTIMONY OF GREGORY P. WYATT
September 29,2014
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Please state your nurme and business address.
Gregory P. Wyatt, 8248 W. Victory Road, Boise, Idaho.
What is your occupation?
I am the Vice President and General Manager of United Water Idaho Inc. (United
Water).
Please describe your experience in the water industry.
I have been employed at United Waterworks properties, formerly General
Waterworks, since December 1974. Prior to assuming my current duties as
General Manager of United Water Idaho in late 1999, I worked in various
capacities in several states including General Manager for United Water
Pennsylvani4 Area Manager for the United Water Indiana operations, Assistant
Manager of United Water Idaho and various accounting positions in New Jersey
and Pennsylvania.
What are your duties and responsibilities?
My duties and responsibilities are to oversee the daily operation of providing
potable water to the customers of United Water Idaho. I oversee the various
departments of Engineering, Production, Transmission & Distribution, Customer
Service, Billing, Information Technology, Finance and Planning, and
Administration in meeting their responsibilities for the delivery of potable water,
maintaining compliance, and providing related services to customers.
My responsibilities also include supervision of the Company's compliance
with all regulations in regard to safety, compliance with the Safe Drinking Water
Act, and other similar requirements.
Wyatt, Di I
United Water Idaho Inc.
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Please describe how you became aware ofproblems with water supply
contamination existing at the Brian Subdivision.
I first became aware of water supply contamination problems at the Brian
Subdivision in December20t2 at ameeting requested by Mr. Richard Juengling.
He requested the meeting to discuss the possibility of United Water providing
potable water supply to the subdivision.
Did United Water then investigate possible solutions to the contamination
problem?
Yes, United Water, in conjunction with Brian Subdivision representatives and the
Commission Staff, investigated possible solutions, and options were identified.
Please describe the options.
The first group of options examined possible improvements to the Brian
Subdivision water system without connecting it to the United Water system. In his
Direct Testimony, Mr. Richard Juengling discusses these options and the reasons
they were rejected.
The second group of options involved connecting the Brian Subdivision water
system to the United Water system.
Please describe these options.
Initially, the parties discussed extending United Water's facilities to the entry
point of the Brian Subdivision water system and serving the Subdivision through
a master meter. Two routes were explored for the extension; one from United
Water's existing mainline in Warm Springs Avenue (the "Warm Springs" option),
Wyatt, Di 2
United Water ldaho Inc.
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and the other from United Water's existing facilities at Surprise Valley near State
Highway 21, crossing under the New York Canal and the Boise River (the "Boise
River" option) to connect with the Brian Subdivision system.
What happened next?
The Brian Subdivision Water User's Association (BSWUA), through their
representative, Mr. Richard Juengling, asked United Water to take over the entire
Subdivision water system rather than master metering it, because BSWUA
indicated they had neither the interest nor the financial resources to continue
ownership and operation of the water system.
Please further describe the two options including work required within the
Subdivision to take over the water system.
The Warm Spring's option involves extending United Water's existing l2-inch
water main located in the right of way of Warm Springs Avenue approximately
1,400 feet to the north end of the Brian Subdivision. This route would also
require a booster station and auxiliary power to provide adequate flow and
pressure.
The Boise River option involves extending United Water's existing facilities from
the southeast portion of the Surprise Valley area, nezr Highway 21, down under
the New York Canal and the Boise River, along Warm Springs Avenue to the
north end of the Brian Subdivision. This extension would consist of
approximately 2,180 feet of l2-inch pipe and 1,800 feet of l4-inch pipe. To
accomplish this, the l4-inch pipe would, in psrt, be bored underneath the Boise
River and the New York Canal.
Wyatt, Di 3
United Water ldaho Inc.
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Each of these options then include constructing approximately 360 feet of 12-inch
and2,l90 feet of 8-inch main within the Brian Subdivision, along with
replacement of all services, meters, meter boxes and meter setters, plus the
installation of four fire hydrants to provide fire protection to the Brian
Subdivision, which is currently without any fire protection. The route of the
Boise River option, including the onsite work within the Brian Subdivision, is
shown on ExhibitNo. l.
Why is United Water proposing replacement of the services, meters and meter
boxes within the subdivision?
Because the existing facilities are old and do not meet United Water's standards
for these types of facilities. United Water operating personnel toured the BSWUA
water system and observed the following problems with the existing service line
and metering facilities:
o All of the meters are gallon register meters. United Water bills water
volume in hundred cubic feet increments. Additionally, many of the
meters are extremely old and some looked to be from original
installation in the 1960's and 1970's.
o Most meter boxes and setters are sub-standard using unconventional
materials. United Water personnel observed numerous shallow meter
settings which can contribute to winter freeze-ups. A variety of meter
box types were observed including, yard-style irrigation junction
boxes, wooden boxes, and even a cut-offplastic barel. In United
Wyatt, Di 4
United Water ldaho Inc.
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Water's opinion, these facilities also present a safety concern for meter
reading and other utility activities.
o Due to the age of the existing utility-side services, United Water
expects attempts to connect those services to both new mains and new
meter settings to be problematic and frequently impossible.
6 a. Has United Water estimated the construction cost of the Warm Springs option and
7 the Boise River option plus the facilities within the Brian Subdivision?
8 A. Yes. The estimated cost of the Warm Springs option is approximately $994,000
9 and the estimated cost of the Boise River option is approximately $1,340,200.
l0 The details of these estimates are shown on Exhibit No. 2, attached hereto.
1l a. Does United Water have a preference between the Warm Springs option and the
12 Boise River option?
13 A. Yes. From a system engineering and customer service point of view, United
14 Water prefers the Boise River option.
15 a. Please explain.
16 A. The existing main line located within Warm Springs Avenue currently terminates
17 approximately 1,400 feet away from the Brian subdivision and it is not looped to
18 the rest of the United Water system. Extending the line along Warm Springs to
19 the Brian Subdivision only lengthens the un-looped line. The Boise River option
20 would go a long way to enabling the eventual connection of the existing Warm
2l Springs main to the pipe line to be constructed under the Boise River option.
22 a. Why is the Boise river option desirable from an engineering and customer service
23 standpoint?
Wyatt, Di 5
United Water Idaho Inc.
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The water customers along the Warm Springs Avenue corridor, including Haris
Ranch and the Brian Subdivision, exist within United Water's Barber Service
Level. This service level is water source limited and receives approximately 25%
of its maximum day supply needs from the higher Columbia Service Level. The
bulk of this imported supply enters the Barber Service Level at Barber's westerly
boundary near Federal Way and Bergeson. However, the bulk of the customer
growth in the Barber Service Level is on the easterly side; i.e. Harris Ranch and
the developments eastward along Warm Springs Avenue.
Developer growth within the next several years along the remaining
undeveloped portion of Warm Springs Avenue will likely bring the water line
extension to enable the loop connection with the Boise River option main line
extension, but not in time to solve BSWUA's needs.
This looped interconnection of the Barber Service Level would provide
the following engineering and customer service benefits:
o A direct water supply connection to Barber's highest groWh area.
o It would balance the supporting import flows between the east and
west, thereby reducing stress on the Federal Way pipeline.
o Eliminate the need for a new booster station, auxiliary power
generator, and the associated operating costs that are necessary with
the Warm Springs option.
o Eliminate an approximate two mile long dead end mainline (IDEQ
encourages the elimination of dead end mains to provide, "increased
reliability of service and reduced headloss" [58.01.08.542.08a].
Wyatt, Di 6
United Water ldaho Inc.
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The looped interconnection will provide improved service and
reliability to all of the approximately 7,000 Barber Service Level
customers, including the Brian Subdivision.
It will provide adequate flow and pressure to provide fire protection
service to BSWUA customers.
Additionally, if the Warm Springs option is selected now, the required
booster station and auxiliary power generation unit would become obsolete
whenever the Boise River option main line connection is eventually built.
Has United Water estimated the annual revenue requirement associated with both
the Warm Springs option and the Boise River option, including the BSWUA
onsite pipeline and facilities?
Yes. The fust year revenue requirement associated with the Warm Springs option
is approximately $122,828 and the fust year revenue requirement associated with
the Boise River option is approximately $165,609. These calculations are shown
on Exhibit No. 3.
Has United Water discussed possible cost recovery with BSWUA and the
Commission Stafl
Yes. Several possibilities were discussed. The parties took into account a
number of considerations which included the Brian Subdivision customers
supporting more or less of the revenue requirement. However, all considerations
still envisioned a siguificant portion of the revenue requirement being supported
by the entire body of United Water customers due to the economic limitations of
the Brian Subdivision homeowners. Assigning the full cost of the Boise River
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United Water Idaho Inc.
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option to BSWUA customers would create an insurmountable financial burden to
those customers as discussed in Richard Juengling's testimony. A balancing of
these considerations produced the following as a way to allocate and recover
costs:
. Assign 100% of services and meters cost to BWSUA customers;
Assign a ma:rimum of l0% of pipeline and hydrants to BWSUA
customers and recover those amounts through a surcharge to BWSUA
Customers.
. Assign 90% of pipeline costs to all United Water customers to be fully
recovered in United Water's general service rates.
How does United Water propose to recover the revenue requirement associated
with the above costs allocated to the BSWUA customers?
United Waterproposes two options for BSWUA customers:
t. An immediate fixed surcharge is added to the BSWUA customer's
bills for a ten-year period for their portion once the interconnection
with United Water's system is complete and final costs are
determined.
2. BSWUA customers make a one-time payment equal to the net present
value of the surcharge payments over the ten years.
BSWUA customers would select their option once actual construction costs are
determined and final revenue requirement calculations are made. Once selected,
BSWUA customers may not change their option selection.
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United Water Idaho Inc.
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How does United Water propose to recover the revenue requirement associated
with the above costs allocated to all United Water customers?
United Water requests a determination by the Commission that the costs to be
allocated United Water customers are prudently incurred and that the Commission
provide an assurance that they will be fully included in rate base (not l3-month
averaged) and in rates in United Water's next general rate proceeding.
Is United Water proposing any additional rate making treatment?
Yes. United Water proposes the Commission allow the Company to continue the
calculation and accrual of post-closing AFUDC on the balance of the construction
costs allocated to United Water customers until such time as that investment is
fully accounted for and included in rates in the next general rate case
determination.
Please explain the rationale for this request.
United Water is only the local public drinking water system with the resources to
assist smaller water systerns that face public health problems or other problems
that cause them to be considered "troubled" systems. Recognizing its capabilities,
United Water is willing to devote its resources to help solve public health
concerns.
However, United Water believes it would be unfair forthese investments
to be, in effect, stranded, without earning any kind of return, until its next general
rate case. Allowing accrual of post-closing AFUDC would be a step toward
relieving that unfairness. And, depending on the timing of United Water's next
general rate case, the application of the now customary l3-month averaging
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United Water Idaho Inc.
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methodology could result in the fulIamount of the investment not being
recognized in rates. United Water is therefore requesting that this investment be
exempt from the l3-month methodology and fully included in rates in the next
general rate proceeding.
Has United Water prepared an estimate of the surcharge to be applied to the
BSWUA customer's bills according to the allocation referenced above?
Yes, the estimated bi-monthly surcharge is $124.86 per customer and is reflected
in the attached Exhibit No. 4.
Are there any construction timing considerations United Water is aware of with
regard to constructing the Boise River option extension?
Yes. The Boise river option involves boring under the canal system, and the canal
authorities only allowthat work to be completed during times when the canal
system is not in operation. Essentially, this limits the bore timing to between the
mid-October to mid-March timeframe, when the irrigation canals are not flowing
water ("irrigation-off'). For this reason United Water requests the Commission
decision be rendered so as to enable bore construction during the October 2014 to
March 2015 season mentioned above. The remainder of the extension installation
can occur any time during the year, weather permitting.
Why is it important to complete the bore construction during the October 2014 to
March 2015 timefrarne?
In order to provide the BSWUA customers with the interconnection and potable
water supply as early as possible in 2015. If we are unable to perform the bore
construction during this upcoming "irrigation off'season, we will have to wait
Wyatt Di 10
United Water ldaho Inc.
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until the 2015-2016 "irrigation-off'seasonto do that work and BSWITA
customers will have to wait until sometime in 2016 to see a resolution of their
water contamination problem.
Does this conclude yourtestimony?
Yes it does.
Wyatt, Di I I
United Water Idaho Inc.
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$ 9.&oa6 $ ,,61112S - $ .otooI s79,18{ t !rt184
s l,g{quo s 99r,s6
s 121s.184 $ e58p70
s u5,{126 s
'25,tD6s r,no,zro s 993996
-
Albd!OBSITI'Aluns lltt.m$dngrEsuls lsles 12r,s18 s E6,897 ltr
l-IE&-.L-94ts- looe6
s 2.6r{4 s 21u23
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sutDd$ vallar. AcE6s RlvErto Brbn sub.
DE9CrumOfl
IJWID ENGINEERING
QUAOMNT SURVEY & EASEM ET{Is
IJWD INSPECNON
MOBII.IZANON
TRAFFICCONTROL
EROSION CO{TROL
ACHD PERMTT
sirRtPlN6
TI-INCH DIOWYHEE INSruI
lz-INCH DI BAGGING
1z.INCHDI MATERAIL
ul-rNcH rAP rNsrAu (suRPRlsE wAY)
IZ-INCH BORE COI{NECnON
lil-INCH FLG!fiJ GAIE VLAVE
5U TOTAL
I:I-INCH GATEVALVE
BLOW.OFF
l2.INCH PVC OWYHEE INSTAII
l2.INCH BETLRESTRAiI
ASPHALT REMOVAL
ASPHATTREPIACE
12-INCH MAIERIAL (lnd. Etdngsl
suBftoTA[
lflNCH OD HDPE BONE
1+INCH DIPS HDPE SDR11
1+INCH HDPE FI.G
14x12 REDT CER
I+INCHCOUPUNG
,,EIilCH DI HDPE SDR26 SIEEVE
N'$ON MACHII{E
SU8TCITAL
?HNCH OD HDPE BORE
I+INCH DIPS HDPE SDRll
IIT-INCH HDPE FtG
14x12 REDT CER
1IHNCHCOT,IPUNG
N.lSloN MAC}IINE
SUBTOTAL
TOTAL
o&c
OVERHEADS 1251%
CNANDTOTAL
uilrTs uiltr co$ nE vl cosT
1 s1s,000.00 $ 1s,0001 s20,000.00 s 20,0@80s so.@s 4,0fi,2$L02C00$ 2,0401$Z3oo.ooS Zaoors €L17s 4311sA8m.o0$ 2,800rs 500.005 s(nz0o$ 25.21s 6,s552505 3.mS 7802@S 49.969 12,9881s1,20O00$ 1,2004sl5so.oo$ a,zoo5$1,82&2s9 10,970
2$1"884.90s 3,20r$ u5.05s 105L92os zczls 48,40310s sz21 s a(E87,680$ 0.68s s,2227,680$ 3.00s 23,0{01820s 28.63s s+977
Ll{o Sr,uo $2$2$
r,$
z+S
240.00 s 158,400u,n S u,005
ueso s ,71
rzs.ro S 2so
s9(50 S 3!,s
t7.E s 10,650
rrs.m 9 4,550
2m.00 s 319,200
27.28 5 3tose
18&50 s 371
rzs.ro $ 250
394.50 s 395
rzs.oo $ 4200
seo $
sso $2$z$rS
600 Szs$
w,7il
137,605
l92627
355,521
n6iL7
n,652
105357
10,0c/6
,.:L5194
s
s
s
Cas. ilo. uW-W-1tH}1
Erdthlt No, 2
P.ge 2 ofs
C. Wyatt
We]mSorlnssto ManSub.
DESCRIpTlON
ACHD PERMI
MOBILEANON
12,, MAIN CONNECNON
U'MAIN EXTENSION
EXfRA DEPTH FOOTAGE
TRAFFIC@NTROI
FI.AGGERS
3/4 ROAD MtX
ASPHALT REMOVAL
ASPHATT REPALCEMENT
BELL RESTRAINT NSTAUATION
FIRE HYDRANT
FOG IINE PAINT
12 INCH PVC MATERIAIS (lncl. Fitdngs)
UWDIABOR
ENGINEERING
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oH @ x2,s1
UNTIaIY Gost
1 s 4p00.@ s
1 s 1,020.00 s1 s 7s0.00 s
1400 $ 24.72 $
!m0 s 4.12 $1 s 950.00 s
1oo s 20.00 s
30 s 14.00 s
s600 s 0.68 s
8400 $ 3.m s
30 s s1.s0 s2 s 3,58234 s1 s s00.00 s
1400 $ 8.44 s
60 S 45;50 S1 s 3,G)0.00 s1s.00% s12.5t% s
ITEM
AMOUHT
4000
1,020
750
34,58
s,768
950
eo0o
.420
3,808
25,2N'1,545
7,!65
500
31516
. 2r7?O
3,m0
19,362
1&s70
Total $ 16r,012
Case No. t W-W-1+01
Exhlblt No.2
Pags 3 ofS
G, Wyatt
DECTFnOX
il1.{ltotn crusrAl
I24NOI GAIEVAL\IE
lalllcHtEtlnE InAr{T
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uwlDlt{sPEctxIr
st.[ftrIA
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&IilCH BEU RESTRAIIT
ASPHATTREMo\'AI
ASPHATTRPI.ACE
8{NCfi PvC MATERIAL
AINC}I6AIEVALVE
UWDINPECIION
SUBTOTAL
I.INCHSERV|CE iEPLACE
1{NOI SERVICE MAIBI,AI,
qJ$oMEn ao${EcnoN
O,SIOMERMEIEI
TIJNNES
soDiEP ti
SEMTCE6ONE
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ASPI{ATRFUCE
uwD tr{sPEcnoil
SIJBTOIAI
HNE HYOfiANTINSTAI,J.
FtRl HrDiArarMA'tEitAt
OJR8 &G1'IICi RE!IOt'AL
oJRE&GUrEiReUCr
stDBil/ALX nEl|oVAt
SIDEIiVAII( REPI.ACE
SOD iEPAIR
ASPHALTREMOVAT
ASPMLTRE?I.ACE
UWD II{SPECIION
SUETOTA
TOTA!
o&c
o\'ERHEADS 1L51X
G'RAI{DTOTII.
tnm
360
2
E
[4ao
1tco
slio
15
I
11910
7
2I
1
15
8,76
13,140
er90
4
80
46
&
a6
46
16
tAn
1
5,1?5
1W
92
10.00t6
l25lY.
25:1 $
t88rr0 s52,r s
ox8 I
3.00 $
2&6s I
50.00 5
3.@
8.76
s 15.000.00 ss anrss 1O5O5 ss 105'06 5
$ trs.oo $s ,100.00S 95.2S o.68
9,076
slm
900
clg
6i480
10,3B
lfi
I ta3a
$pm
1f,p,:
2lo
2ro$a
1,400
552
4e',
t9l2o
e1pt2
3,844
4n()
s $s,242
42:n
15,660
11p{O
1+159
2,476
4708
+000
3.519nffi
4W
S lorp2
uMtootf mM65t
!15039 $
50.00 s
489:7s 840.6tS 2acoo$ 28938s sasrs L845
3,m0.6 s.0.58 s
3.00 $
50,00 s
r0L022 s
o&c
1049110,02 s
Ofilsl,c)e. etrt
13102 s 1:EJfi'6
s
$
s
s
s
s
s
$
4
a
15
15
a4
95
200
400I
42g,,a s 15813,lElro $ 46{8
s.68 s 5e
42.02 s 612
3.68 s B6
15,76 s
',009lal $ tt7
0.68 s 135
3.m s !2oo
50.00 t {oo
L7p17
S !oqr84$ !0,538s 1?"162
I 5r9I!4
O$llqt W-1fl-14{1
E6Dtl{o,2
Plg.4of5
G.t,utnt
i
I
i
grlan Sub. Boostcr fwerm Spr,lnss Boutel
DESCR|mOt{
I.AND
BOOSTER PUMP
BOOSTERPUMP
ELECTRTCAL
EECTRrcALDESIGN
BOOSIER PUMP INSTALL
YARD PIPING
I.ANDSCAPING
STANDBY GENEMTOR
TELEMETRY EqUPMENT
PRESSURE RELIEF VALVVVAULT
UWID IABOR
ENGINEERING
o&c
oH @ 12,51
Total
UNIT ITEM
QTlf cosT AMouin1s 40,0m.00 $ eo,mors 25,000.m $ 25,oooz$ so,oqr.oo $ loo,ooor$ 5o,ooo.oo s so,ooorS 7,s00:q) S 7,500r$ 25,mo.00 s x,ooors 3s,000.@ $ 35,000rs Lsoo.oo s 1,500rS stooo.oo.$ ss,fi)ors 2,s00.00 $ asmrs 9000.q) s 9,000
60S
ao$
1s.00%
L2st9l
4s.50 s 2,730
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