20220930Njuguna Direct with Exhibits.pdf

Preston N. Carter (ISB No. 8462)
Morgan D. Goodin (ISB No. 11184)
Givens Pursley LLP 601 W. Bannock St. Boise, ID 83702 Telephone: [phone]
Facsimile: [phone]
[e-mail] [e-mail] Attorneys for Veolia Water Idaho, Inc.

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
OF VEOLIA WATER IDAHO, INC. FOR
AUTHORITY TO INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO
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DIRECT TESTIMONY OF DAVID NJUGUNA FOR VEOLIA WATER IDAHO, INC. SEPTEMBER 2022
NJUGUNA, DI 2
Veolia Water Idaho, Inc.

Q. Please state your name and business address. 1
A. My name is David Njuguna, and my business address is 461 From Rd, Suite 400, 2
Paramus, New Jersey 07652. 3
Q. By whom are you employed and in what capacity? 4
A. I am employed by Veolia Water M&S (Paramus), Inc. (“VWM&S”) as Manager – 5
Regulatory Business. 6
Q. Please summarize your educational background and qualifications. 7
A. I graduated from Kenyatta University, Nairobi, Kenya, with a Bachelor of 8
Commerce Degree in Accounting in 2000 and earned a Masters Degree in Business 9
Administration from Rutgers Business School in 2012. 10
Q. What experience did you have prior to joining VWM&S? 11
A. From August 2001 to July 2006, I was employed by the Union Fenosa Group, an 12
integrated energy company headquartered in Madrid, Spain, where I gained a broad 13
outlook of utility accounting. During my tenure at Union Fenosa, I held various 14
positions and my responsibilities varied depending on the title I held. As a 15
management accountant, my responsibilities included preparing, reviewing and 16
analyzing monthly divisional and consolidated financial statements and reports. As 17
a financial accountant, my responsibilities included financial analysis and 18
preparation of consolidated company budgets and financial reports. 19
Q. When did you join VWM&S and in what capacity? 20
A. I joined VWM&S in May 2007 as a Rate Analyst. In August 2010, I was promoted 21
to the position of Senior Rate Analyst and later promoted to the position of Manager 22
Regulatory Business in January 2016. 23
NJUGUNA, DI 3
Veolia Water Idaho, Inc.

Q. What other roles have you held while employed by VWM&S? 1
A. From December 2012 through December 2015, I worked in the Accounting 2
Department of VWM&S as an Accounting Manager focusing on Regulatory 3
Accounting and Fixed Assets Accounting. My duties included, but were not limited 4
to, ensuring the proper accounting of deferred regulatory assets and fixed assets of 5
the Company. 6
Q. Before what regulatory agencies have you previously presented testimony? 7
A. I have previously filed testimony in rate case filings before the Idaho Public Utility 8
Commission, the New York State Public Service Commission, the New Jersey 9
Board of Public Utilities, the Pennsylvania Public Utility Commission, the 10
Delaware Public Service Commission and the Arkansas Public Service 11
Commission. 12
Q. What is the purpose of your testimony in this proceeding? 13
A. The purpose of my testimony is to describe and present the calculation of the 14
revenue deficiency and the resulting request for rate relief for Veolia Water Idaho, 15
Inc. (“Veolia Water Idaho”, “VWID” or the “Company”). 16
Q. What Exhibits are you sponsoring? 17
A. I am sponsoring the following Exhibits: 18
1. Exhibit No. 6-Capital Structure and Cost Of Debt 19
2. Exhibit No. 9-Statement of Operating Income 20
3. Exhibit No. 10, Schedule 2-Adjustment to Depreciation Expense 21
4. Exhibit No. 10, Schedule 4-Computation of Revenue Requirement, State and 22
Federal Income Taxes. 23
NJUGUNA, DI 4
Veolia Water Idaho, Inc.

5. Exhibit No. 11, Schedule 1 through Schedule 9-Rate Base Adjustments 1
Q. What level of increase is the Company seeking in this proceeding? 2
A. Veolia Water Idaho is seeking a revenue increase of $12,107,227 or 23.4% over 3
current rates for the Test Year period ending March 31, 2023 (“Test Year”). The 4
Test Year consists of a 12-month historic period ending on June 30, 2022 (“Historic 5
Test Year”) and a nine-month adjustment period ending on March 31, 2023. 6
Company Witness Thompson provides in his testimony more detail about the 7
drivers of this increase. 8
Q. What rate of return on rate base is this rate increase based upon? 9
A. The increase is based on an overall rate of return of 7.77% with a return on equity 10
of 10.80% requested in this proceeding, which is supported in the Direct Testimony 11
of Veolia witness Harold Walker, III. 12
Q. Have you prepared an Exhibit No. 6 that shows the calculation of the 13
Company’s proposed overall Rate of Return of 7.77%? 14
A. Yes. Exhibit No. 6, page 1, shows the capital structure of Veolia Water Resources 15
(“VWR”), the parent company of VWID, along with the cost of debt and the return 16
on equity. VWR’s capitalization percentages for debt and equity are 44.43% and 17
55.57%, respectively. The exhibit utilizes a 10.80% rate of return on common 18
equity and a 3.99% cost of debt. The weighted average of these components is the 19
7.77% overall requested rate of return. 20
Q. Has the Commission previously approved the Company’s use of Veolia Water 21
Resources capital structure and cost of debt in its rate case filings? 22
A. In Commission Order No. 28505, in Case No. UWI-W-00-1, the Commission 23
NJUGUNA, DI 5
Veolia Water Idaho, Inc.

found the use of the capital structure and cost of debt for VWID’s then parent 1
company United Waterworks Inc. to be reasonable for ratemaking purposes. United 2
Waterworks Inc. has since been incorporated into SUEZ Water Resources Inc. 3
which has been rebranded to Veolia Utility Resources, Inc.. The Company is 4
utilizing the capital structure of Veolia Utility Resources, Inc. 5
Q. Have you prepared an exhibit that indicates the Test Year operating income 6
for the Company at existing and proposed rates? 7
A. Yes. I have prepared Exhibit No. 9, titled “Statement of Operating Income Per 8
Books and Pro Forma under Present and Proposed Rates For The Twelve Months 9
Ending March 31, 2023”. 10
Column 1 references the Exhibit Numbers (5, 6, 10 and 11) that detail the 11
adjustments to the Historic Test Year results indicated on Exhibit No. 9. Column 12
2 indicates the elements of operating income: operations and maintenance expense, 13
depreciation and amortization expense, taxes other than income and income taxes. 14
The amounts therein are per books, as shown on Exhibit No. 10, Schedules No. 1, 15
2 and 3 respectively. Column 3 of Exhibit No. 9 shows a summary of Test Year 16
adjustments made to revenues and expenses. The adjustment to operating revenue 17
shown on line 1 is detailed on Exhibit No. 5, Schedule No.2 and will be explained 18
by Company witness Michaelson. The adjustments to operation and maintenance 19
expenses, summarized on line 2, are detailed on Exhibit No. 10, Schedule 1 and are 20
supported in the testimony of Company Witnesses Cary, Wilson and Zerhouni. The 21
adjustments to depreciation expense and amortization of utility plant acquisition 22
adjustments, summarized on lines 3 and 4, are detailed in Exhibit No. 10, Schedule 23
NJUGUNA, DI 6
Veolia Water Idaho, Inc.

2 and are further explained in my testimony and the testimony of Company witness 1
Zerhouni. The adjustments to operating taxes summarized on lines 6 and 7 are 2
detailed in Exhibit No. 10, Schedule 3, and are explained by Company witness 3
Cary. Column 4 of Exhibit No. 9 shows the adjusted operating income at existing 4
rates for the Test Year. Column 4 also indicates that based on the Test Year 5
adjustments made, the Company will earn a 4.59% overall rate of return on its rate 6
base investment as of March 31, 2023. Column 5 of Exhibit No. 9 shows the 7
adjustments to operating revenue, operation and maintenance expenses, and income 8
taxes under the increased rates proposed by the Company herein. The adjustment 9
to operating revenues of $12,107,227 was computed using a 7.77% rate of return 10
on rate base as described above. Column 6 of Exhibit No. 9 calculates the adjusted 11
operating income necessary to produce the requested rate of return, 7.77%. The 12
income taxes shown on lines 11 and 12 were computed as indicated on Exhibit No. 13
10, Schedule 4, and will be explained later in my testimony. 14
Q. Please explain the adjustments to operating expenses as shown on Exhibit No. 15
9. 16
A. Operation and maintenance expenses have increased by $4,731,018 (Exhibit No. 9, 17
line 2). These costs are supported by the testimony of Company witnesses Cary, 18
Wilson and Zerhouni. Depreciation and amortization expenses have increased by 19
$1,212,502 (Exhibit No. 9, line 5). Property Taxes have increased by $375,507 20
(Exhibit No. 9, line 6). Payroll taxes have increased by $124,797 (Exhibit No. 9, 21
line 7). Federal and State income taxes are calculated based upon the revenue 22
NJUGUNA, DI 7
Veolia Water Idaho, Inc.

requirement. Federal income taxes have decreased by $2,205,760 and State income 1
taxes have increased by $1,692,696 (Exhibit No. 9, lines 11 & 12). 2
The detailed support for adjustments to the operating expenses is shown on 3
Exhibit No. 10, Schedule 1 through 4 . Schedule 1 provides details for adjustments 4
made to operation and maintenance expenses that are explained by Company 5
Witnesses Cary, Wilson and Zerhouni. Schedule 2 provides details for adjustments 6
to depreciation and amortization expense and Schedule 3 provides details for 7
adjustments to property and payroll taxes, which are further discussed by Company 8
Witness Wilson. Exhibit No. 10, Schedule 4, provides details for adjustments to 9
State and Federal income tax expenses. Exhibit No. 10, Schedule 4, shows the 10
method I employed to compute the “Net to Gross Multiplier” utilized in this case 11
to gross up the Net Operating Income deficiency to reflect the needed revenue 12
increase. 13
Q. Please explain Exhibit No. 10, Schedule 4. 14
A. Exhibit No. 10, Schedule 4, Page 1 of 2, shows the calculation of State and Federal 15
income taxes at both existing and proposed rates. The amounts shown on line 1 of 16
columns 1 and 2 are the same as the amounts shown on line 10 of columns 4 and 6 17
on Exhibit No. 9. These figures represent operating income before income taxes. 18
From these figures, the applicable statutory deductions were included when 19
computing the State and Federal income taxes. 20
The first deduction is interest expense and it is deductible in the 21
computation of both State and Federal taxable income. The calculation for the 22
NJUGUNA, DI 8
Veolia Water Idaho, Inc.

interest deduction is shown in Note A on lines 11 through 15. The deduction of 1
interest expense is included in the total tax deductions amount on Line 4. 2
The second deduction is the excess of pro forma tax depreciation over pro 3
forma book depreciation. The excess tax depreciation is deducted from State 4
taxable income only since State income taxes are calculated on the basis of flow-5
through accounting, while Federal income taxes are calculated on the basis of 6
normalization accounting. Lines 23, 24 and 25 indicate the amounts used in 7
determining excess tax depreciation. 8
Q. Please explain the adjustment shown on line 2, Column 5 of Exhibit No. 9. 9
A. The adjustment shown on line 2, Column 5 of Exhibit No. 9 represents additional 10
uncollectible expense and IPUC assessment as a result of the pro forma adjustment 11
to operating revenue shown on line 1, Column 5 of Exhibit No. 9 as further detailed 12
out on Exhibit No. 10, Schedule 4. 13
Q. Why is an end of the Historical Test Year rate base method or a 13-month 14
average rate base calculation not the most appropriate method of calculating 15
rate base? 16
A. When determining a Test Year for ratemaking purposes, it is appropriate to develop 17
normalized results of financial and operational results that best reflect the 18
infrastructure costs which will be in place during the time rates will be in effect as 19
a result of a rate case filing. Adjustments to O&M expenses, taxes, other than 20
income taxes, depreciation expense etc. are calculated with the same objective. In 21
this case, utilizing an end of period rate base calculation, the rate base, depreciation 22
expense, income taxes, interest costs etc. provide for a matching of those costs to 23
NJUGUNA, DI 9
Veolia Water Idaho, Inc.

the rates then in effect. The Company has therefore included in its filing a test year 1
ended March 31, 2023, which will coincide with rates will be effective in this case. 2
Utilize an end of historic period rate base or 13-month average rate base does not 3
provide for such matching and creates significant regulatory lag. 4
Q. What is the level of rate base the Company is requesting in this proceeding? 5
A. The Company’s rate base for the test year ending March 31, 2023 is $280,756,025. 6
Q. Please explain Exhibit No. 11, Schedule 1. 7
A. Exhibit No. 11, Schedule 1, Page 1 of 1, Rate Base Summary, shows the elements 8
of the Company’s rate base as of March 31, 2023, using an End of Test Year 9
methodology. The elements of rate base are as follows: Utility Plant in Service; 10
Accumulated Depreciation; Customer Advances for Construction; Contributions In 11
Aid of Construction; Net Utility Plant Acquisition Adjustments; Accumulated 12
Deferred Income Taxes; Deferred Charges; Working Capital and a Regulatory 13
Liability as a result of the Tax Cuts and Jobs Act. 14
Q. Please explain Exhibit No. 11, Schedule 2. 15
A. Exhibit No. 11, Schedule 2, Page 1 of 1, End of Test Year Worksheet, shows the 16
monthly balances, actual and forecasted, from March 31, 2022 to March 31, 2023 17
for each the rate base component. Monthly balances are carried forward to this 18
schedule from the supporting schedules, Utility Plant In Service with Forecast 19
Additions and Retirements for (Schedule 3), Accumulated Depreciation and 20
Accumulated Contribution in Aid of Capital (“CIAC”) Amortization (Schedule 4), 21
Developer Advances for Construction subject to Refund (Schedule 5), 22
Contributions in Aid of Construction (Schedule 6), Summary of Net Utility Plant 23
NJUGUNA, DI 10
Veolia Water Idaho, Inc.

Acquisition Adjustments (Schedule 7). The balances at March 31, 2023 are 1
included in Exhibit 11, Schedule 1. 2
Q. Please explain Exhibit No. 11, Schedule 3, Pages 1 through 3. 3
A. Exhibit No. 11, Schedule 3, Pages 1 through 3, shows the Company’s Utility Plant 4
balance as of June 30, 2022 by plant account. Schedule 3 then summarizes the 5
forecasted plant additions and retirements by plant account from July 2022 through 6
March 2023. Exhibit No. 3, sponsored by the Company witness Cooper, forms the 7
basis for the plant activity shown on this schedule. 8
Q. Please explain Exhibit No. 11, Schedule 4, Page 1 of 1. 9
A. Exhibit No.11, Schedule 4, Page 1 of 1, shows the Company’s Accumulated 10
Depreciation and CIAC Amortization. The schedule shows the recorded amounts 11
for these rate base components for the months of March 2022 through June 2022. 12
For the months beginning with July 2022, the amounts for both accumulated 13
depreciation and amortization of CIAC were estimated based on the historical test 14
year, adjusted for forecasted retirements and changes to cost of removal and salvage 15
balances based on the information provided by the Company witness Cooper. The 16
End of Test Year accumulated depreciation is $140,442,405 and amortization of 17
CIAC is $50,825,136, for a combined total of $191,267,542. 18
Q. Please explain Exhibit No. 11, Schedule 5, Page 1 of 1. 19
A. Exhibit No. 11, Schedule 5, Page 1 of 1, summarizes change to advances for 20
construction for the test year. Since the issuance of Order No. 28505 in case UWI-21
W-00-1, the Company does not depreciate advanced property. This requires the 22
Company to accurately track, by associated plant account, all additions and refunds 23
NJUGUNA, DI 11
Veolia Water Idaho, Inc.

impacting the advance account. The End of Test Year balance of advances for 1
construction is $3,797,814. 2
Q. Please explain Exhibit No. 11, Schedule 6, Page 1 of 1. 3
A. Exhibit No. 11, Schedule 6, Page 1 of 1, indicates activity in CIAC during the Test 4
Year. Like advances for construction, CIAC funded assets are not depreciated for 5
rate-making purposes. The End of Test Year balance of net CIAC is $112,913,720. 6
Q. Please explain Exhibit No. 11, Schedule 7, Page 1 of 1. 7
A. Exhibit No. 11, Schedule 7, Page 1 of 1, indicates the net change to the balance of 8
Utility Plant Acquisition Adjustment (UPAA). The UPAA gross balance is 9
comprised of both debit and credit balances. As shown on Schedule 7, lines 1 10
through 6, the gross value of the six individual UPAA items, all approved by the 11
Commission in various proceedings, is a positive $600,762. As a result of the Eagle 12
Water Company Acquisition, approved by the Idaho Commission in Docket No. 13
SUZ-W-18-02, the Company was entitled to an acquisition adjustment of 14
$10,475,000 to be included for ratemaking treatment in its next rate case, to be 15
amortized over 40 years. As of March 31, 2023 the net balance will be $10,771,089. 16
Q. Please explain Exhibit No. 11, Schedule 8, Page 1 of 1. 17
A. Exhibit No. 11, Schedule 8, Page 1 of 1, indicates the composition of Accumulated 18
Deferred Income Taxes (ADIT) at the end of the Test Year. The tax depreciation 19
portion of this account was adjusted for assets in service as of March 31, 2023. The 20
balance of ADIT reduces the rate base for rate-making purposes by $5,307,577.21
NJUGUNA, DI 2
Veolia Water Idaho, Inc.

Q. Please explain Exhibit No. 11, Schedule 9, Page 1 of 1. 1
A. Exhibit No. 11, Schedule 9, Page 1 of 1, identifies the deferred items the Company 2
has included in the rate base. The projected balance at March 31, 2023 is 3
$4,933,851. Of this balance, $3,747,454 is the net unamortized balance of deferred 4
items approved in the Company’s six previous rate cases. The $1,186,397 of new 5
deferred charges, requested for inclusion in the rate base in this proceeding, is 6
comprised of six line items. The Company is requesting a twenty-year amortization 7
for tank painting expenditures, in line with the amortization of tank painting granted 8
in case UWI-W-04-04 as well as in the stipulations to the 2006, 2009, 2011, 2015 9
and 2020 rate cases. The Company is also requesting a 2-year amortization period 10
for $343,620 of the rate case expenses associated with this filing in addition to the 11
unamortized balance of $62,221 from the 2020 rate case. 12
Also included in the Company’s request are deferred power costs of $ 13
658,130, which the Company proposes to amortize over 2 years, along with 14
unamortized deferred power costs balance of $411,427 from the 2020 Rate Case. 15
The Company is reflecting a $456,680 decrease to its deferred debit account to be 16
amortized over 30 years at ($15,223) annually. The treatment of AFUDC Equity is 17
further discussed in the testimony of Company witness Khan. The deferred debit 18
balance at March 31, 2023 is projected to be $4,933,851. 19
Q. Please explain Exhibit No. 11, Schedule 10, Page 1 of 1. 20
A. Exhibit No. 11, Schedule 10, Page 1 of 1, indicates the calculation of the allowance 21
for working capital prepared by the Company using the 1/8 of Operating Expenses 22
method. The working capital allowance included in the rate base is $3,552,571. 23
NJUGUNA, DI 3
Veolia Water Idaho, Inc.

Q. Please explain Exhibit No. 11, Schedule 11, Page 1 of 1. 1
A. Exhibit No. 11, Schedule 11, Page 1 of 1, reflects the regulatory liability balance 2
projected at March 31, 2023 in the amount of ($4,075,931) and is the result of the 3
Tax Cuts and Job Act, which reduced corporate income tax rate from 35% to 21%. 4
This is further explained in Company Witness Kahn’s testimony and included in 5
Exhibit No. 12, Schedule 1. 6
Q. Does this conclude your direct testimony? 7
A. Yes. 8

Preston N. Carter (ISB No. 8462)
Morgan D. Goodin (ISB No. 11184)
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

Attorneys for Veolia Water Idaho, Inc.

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF
VEOLIA WATER IDAHO, INC. FOR
AUTHORITY TO INCREASE ITS RATES AND
CHARGES FOR WATER SERVICE IN THE
STATE OF IDAHO

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Case No. VEO-W-22-02

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

EXHIBITS 6, 9, 10, AND 11 TO ACCOMPANY THE

DIRECT TESTIMONY OF DAVID NJUGUNA

Line No.
Capital Structure
Component Amount Percentage
Cost of
Source
Weighted Avg. Cost of
Capital
1 Debt 1,222,046,487$ 44.43%3.99%1.77%
2 Equity 1,528,664,904$ 55.57%10.80%6.00%
Total 2,750,711,391$ 100.00%7.77%
Case No. VEO-W-22-02
Exhibit No. 6D.Njuguna
Page 1 of 1
VEOLIA WATER IDAHO
Calculation of Weighted Average Cost of Capital
Case No. VEO-W-22-02
Capital Structure and Cost of Debt of Veolia Utility Resources
VEOLIA WATER IDAHO
STATEMENT OF OPERATING INCOME PER BOOKS AND PROFORMA UNDER
PRESENT AND PROPOSED RATES FOR THE TEST YEAR ENDING MARCH 31, 2023
Column Column Column Column Column ColumnLine(1)(2)(3)(4)(5)(6)No.
Per Under Proposed Rates
Adjustment Books Test Year AdjustedDescriptionReference06/30/22 Adjustment Test Year Adjustments Proforma
1 Operating Revenues Exh No.5, Sch 1 $49,459,567 $2,258,292 $51,717,859 $12,107,227 $63,825,086
Operating Expenses
Taxes Other Than Income
Income Taxes
Case No. VEO-W-22-0221Revenue Deficiency less Intervenor Funding $12,107,227 Exhibit No. 9
Order No. 35063)D.Njuguna
VEOLIA WATER IDAHO, INC.
Details of Adjustments to Operating and Maintenance Expenses At Present Rates
SUMMARY - Exhibit 10, Schedule 1
Historic Test Year ended June 30, 2022, as Adjusted
(1)(2)(3)(4)(5)
Witness Line No.Description
Schedule
Adjustment
No.Account Reference
Historic Test Year
Ended
06/30/2022
Normalizing
Adjustments
Adjusted Historic
Test Year Ended
06/30/2022 Adjustments
Test Year Ending
03/31/2023
EXHIBIT 10, Schedule 1
J.Cary 1 Payroll 1 50100 to 50125 6,672,277$ 6,672,277$ 989,331$ 7,661,608$
J.Cary 2 Workers Compensation (excludes reserves, adds claims
payments)2 91460 (159,397)$ 1/255,715$ 96,318$ 19,889$ 116,207$
J.Cary 3 Pension Cash Contributions 3 91500, 71257 & 26310 553,030$ 553,030$ 32,766$ 585,796$
J.Cary 4 Post-retirement Benefits Other than Pension (PBOP)4 91550, 71258 (481,247)$ (481,247)$ (42,509)$ (523,756)$
J.Cary 5 Employee Healthcare (excludes reserves)5 91700 2,482,907$ 2/(25,894)$ 2,457,013$ (353,303)$ 2,103,710$
M.Wilson 6 Employee 401k 6 91800 384,454$ 384,454$ 71,977$ 456,431$
M.Wilson 7 Other Employee Benefits - Tuition 7 91850 13,032$ 13,032$ 1,602$ 14,634$
J.Cary 8 Payroll Overheads (Fringe Benefits Allocation)8 90950 & 90953 (1,547,567)$ (1,547,567)$ 81,157$ $ (1,466,411)
M.Wilson 9 Purchased Water 9 50605 378,302$ 378,302$ (61,608)$ 316,694$
J.Cary 10 Energy- Purchased Power and Other Utilities 10 50610 & 50620 2,498,030$ 2,498,030$ 97,600$ 2,595,630$
J.Cary 11 Chemicals (reclassification amount in Adjusted Test Year to
Materials or capitalized)11 50635 472,422$ 3/(36,754)$ 435,668$ 158,707$ 594,376$
J.Cary 12 Subcontractors 12 50400 811,173$ 811,173$ 19,282$ 830,455$
J.Cary 13 Customer Billing Expenses 13 50405 301,338$ 301,338$ 22,125$ 323,463$
M.Wilson 14 Bad Debts (reserves booked in separate 90405 account)14 90400 & 90405 (391,803)$ 4/683,545 291,742$ 13,321$ 305,063$
M.Wilson 15 Materials (reclassification amount in Adjusted Test Year from
Chemicals)15 50300 278,045$ 5/28,279$ 306,324$ -$ 306,324$
M.Wilson 16 Vehicle Allocation (excludes reserves, adds claims payments)16 50645 & 50646 832,494$ 6/(274,913)$ 557,581$ 467,768$ 1,025,350$
J.Cary 17 Office Expenses 17 50650 741,917$ 741,917$ 73,730$ 815,647$
M.Wilson 18 Advertising Expense 18 50651 217,084$ 217,084$ 10,598$ 227,683$
M.Zerhouni 19 Management & Service Fees 19 90850 4,066,814$ 4,066,814$ 499,821$ 4,566,635$
J.Cary 20 General Insurance (excludes reserves, adds claims payments, does not include premiums captured in M&S Fees)20 91400 & 91450 227,124$ 7/(135,776)$ 91,348$ 151,177$ 242,524$
M.Wilson 21 IPUC Fees 21 91900 97,278$ 97,278$ 5,899$ 103,177$
J.Cary 22 Safety 22 92200 154,824$ 154,824$ 40,582$ 195,406$
M.Zerhouni 23 Amortization Expense - Deferred Rate Case (excludes Intervenor
funding)23 92000 51,960$ 8/(22,092)$ 29,868$ 173,055$ 202,923$
M.Zerhouni 24 Amortization Expense - Deferred Pension 24 92056 477,384$ 477,384$ (454,166)$ 23,218$
M.Zerhouni 25 Amortization Expense - Deferred Tank Painting 25 92053 145,217$ 145,217$ 32,066$ $ 177,283
M.Zerhouni 26 Amortization of Excess Deferred Income Taxes 26 92059 (2,207,184)$ (2,207,184)$ 2,007,184$ (200,000)$
M.Zerhouni 27 Amortization Expense - Deferred Power 27 92061 197,484$ 197,484$ 337,294$ 534,778$
M.Zerhouni 28 AFUDC Equity Gross Up Amortization 28 92064 39,024$ 39,024$ (8,501)$ 30,523$
J.Cary 29 Adjustment to Variable Expenses Due to Volume Normalization 29 -$ -$ (127,937)$ (127,937)$
30 Total Adjusted Operating & Maintenance Expenses 17,306,417$ 472,111$ 17,778,528$ 4,258,907$ 22,037,435$
31 Total Unadjusted Operating & Maintenance Expenses 350,189$ -$ -$ -$ 350,189$
32 Total Operating and Maintenance Adjustments 17,656,607$ 472,111$ 17,778,528$ 4,258,907$ 22,387,625$
33 EXHIBIT 10, Schedule 2
D.Njuguna 34 Adjustment to Depreciation Expense 1 70100 & 70101 9,696,461$ 950,629 10,647,090$
M.Zerhouni 35 Amortization of Utility Plant Acquisition Adjustments (UPAA)2 71255 20,712 261,873 282,585$
36 Total Depreciation and Amortization 9,717,173$ -$ -$ 1,212,502$ 10,929,675$
37 EXHIBIT 10, Schedule 3
J.Cary 38 Property Taxes 1 70203 1,769,525$ 375,507$ 2,145,032$
M.Wilson 39 Payroll Taxes (combined FICA, FUI, SUI)Pages 2, 3
& 4 70250 773,986$ 124,797$ 898,783$
40 Total Taxes Other 2,543,511$ -$ -$ 500,304$ 3,043,815$
41 Total Operating Expenses 29,917,291$ 472,111$ 17,778,528$ 5,971,714$ 36,361,115$
Normalizing Adjustments:Case No. VEO-W-22-02
1/Workers Compensation (excludes reserves, adds claims payments GL account 26200)Exhibit No. 10
2/Employee Healthcare (excludes reserves)Schedule 1-2-3
3/Chemicals (reclassification amount in Adjusted Test Year to Materials or capitalized)Summary
4/Bad Debts (reserves booked in separate 90405 account)Cary/Wilson
5/Materials (reclassification amount in Adjusted Test Year)Njuguna/Zerhouni
6/Vehicle Allocation (excludes reserves, adds claims payments GL account 26200)Page 1 of 1
7/General Insurance (excludes reserves, adds claims payments GL account 26200, does not include premiums captured in M&S Fees)
8/Rate Case Expense Amortization (excludes Intervenor funding)
A B
Plant Account Gross Plant In Net Depreciable
301-10 Organization 103,738$ -$ (6,986)$ 96,752$ 0.00%-$ Organization-CIAC - (9,878) - (9,878) 0.00%- 302-10 Franchise Rights 41,182 - - 41,182 0.00%-
303-20 Land & Land Rights - Source of Supply 2,799,807 - (387,217) 2,412,590 0.00%- 303-2W Water Rights - Source of Supply 8,673,782 - - 8,673,782 0.00%-
303-30 Land & Land Rights - Water Treatment 889,034 - - 889,034 0.00%- 303-40 Land & Land Rights - Trans. & Distrib.1,083,954 - 3,644 1,087,598 0.00%- 303-50 Land & Land Rights - General Plant 213,383 - - 213,383 0.00%- Land and Land Rights-CIAC - (341,987) - (341,987) 0.00%- 304-20 Structures and Improvements - Source of Supply 8,390,436 - (566,333) 7,824,103 2.62%205,224
Str & Imprv.-Source of Supply-CIAC - (406,800) - (406,800) 2.62%(10,670) 304-30 Structures and Improvements - Water Treatment 15,955,847 - - 15,955,847 2.38%379,025 304-40 Structures and Improvements - Trans. & Distrib.3,299,161 - 8,485 3,307,646 2.89%95,597
304-50 Structures and Improvements - General Plant 6,406,267 - - 6,406,267 2.73%174,705 305-20 Collecting & Impounding Reservoirs - Source of Supply 44,944 - - 44,944 1.67%749
Coll. & Impound. Reservoirs-Source of Supply-CIAC - - - 1.67%- 306-20 Lake, River & Other Intakes 1,518,794 (72,696) - 1,446,098 1.68%24,347 307-20 Wells & Springs 9,705,834 - (132,638) 9,573,197 1.74%166,217 Wells & Springs-CIAC - (1,405,459) - (1,405,459) 1.74%(24,403) 308-20 Infiltration Galleries & Tunnels - - - - 0.00%-
309-20 Supply Mains 3,073,139 - (40,115) 3,033,024 1.30%39,474 Supply Mains-CIAC - (9,391) - (9,391) 1.30%(122) 310-20 Power Generation Equipment 3,598,737 - 1,761 3,600,498 4.25%153,188
311-20 Power Electric Pumping Equipment - Source of Supply 19,427,660 - (473,841) 18,953,819 4.65%881,458 Electric Pump. Equip.-Source of Supply-CIAC - (2,598,395) - (2,598,395) 4.65%(120,840)
311-20 Power Diesel Pumping Equipment - Source of Supply - - - - 4.65%- 311-30 Power Pumping Equipment - Water Treatment 4,672,578 - - 4,672,578 4.65%217,301 311-40 Power Pumping Equipment - Trans. & Distrib. 10,059,400 - 66,937 10,126,337 4.65%470,931
320-30 Water Treatment Equipment 37,011,177 - (12,775) 36,998,402 2.62%970,595 320-30 Water Treatment Equipment - Membranes 1,349,394 - - 1,349,394 0.26%3,476
Water Treatment Equipment-CIAC - (34,619) - (34,619) 2.62%(908) 330-40 Distribution Reservoirs & Standpipes 20,042,499 - (827,861) 19,214,638 2.13%409,186 Distribution Reservoirs & Standpipes-CIAC - (2,108,957) - (2,108,957) 2.13%(44,911)
331-10 Trans. & Distrib. Mains & Accessories - Intangible - - - - 0.00%- 331-20 Trans. & Distrib. Mains & Accessories - SOS - - - - 0.00%-
331-40 Trans. & Distrib. Mains & Accessories 263,828,307 - (2,135,602) 261,692,705 1.82%4,762,807 T&D Mains & Accessories-CIAC - (117,369,703) - (117,369,703) 1.82%(2,136,129) 333-40 Services 105,731,752 - (228,199) 105,503,553 2.19%2,310,528 Services-CIAC - (29,346,963) - (29,346,963) 2.19%(642,698) 334-40 Meters and Meter Installations 19,138,346 - - 19,138,346 5.36%1,026,354
Meters-CIAC - (116,799) - (116,799) 5.36%(6,264) 335-40 Hydrants 16,061,238 - (6,986) 16,054,252 2.47%395,950 Hydrants-CIAC - (4,958,160) - (4,958,160) 2.47%(122,284)
336-40 Backflow Prevention Devices - - - - 0.00%- 339-10 Other Plant & Misc. Equipment - Intangible - - - - 0.00%-
339-20 Other Plant & Misc. Equipment - Source of Supply - - - - 0.00%- 339-30 Other Plant & Misc. Equipment - Water Treatment - - - - 0.00%- 339-40 Other Plant & Misc. Equipment - Trans. & Distrib.- - - - 0.00%-
339-50 Other Plant & Misc. Equipment - General Plant - - - - 0.00%- 340-500 Office Furniture and Equipment 1,249,944 - - 1,249,944 6.67%83,330
340-5A0 New CIS System - - - - 0.00%- 340-5A0 AM / FM System - - - - 0.00%- 340-5H0 Computer Equipment - Hardware 379,447 - - 379,447 20.00%75,889
340-5I0 IT Initiatives - - - - 20.00%- 340-5S0 Computer Equipment - Software 71,891 - - 71,891 20.00%14,378
Office Furniture & Equipment-CIAC - (393) - (393) 6.67%(26) 341-50 Transportation Equipment 1,477,354 - - 1,477,354 9.49%140,248 342-50 Stores Equipment 216,241 - - 216,241 4.76%10,297
343-50 Tools, Shop and Garage Equipment 1,850,880 - - 1,850,880 5.88%108,875 343-50 Confined Space Monitor, Generator, Trench Shield - - - - 5.88%-
344-50 Laboratory Equipment 74,312 - - 74,312 10.00%7,431 Laboratory Equipment-CIAC - (16,847) - (16,847) 10.00%(1,685) 345-50 Power Operated Equipment 877,766 - - 877,766 8.78%77,063
345-50 Power Operated Equipment - - - - 8.78%- 346-50 Communications Equipment 5,714,512 (120,295) 206,779 5,800,996 5.53%320,581
347-50 Miscellaneous Equipment 316,609 - - 316,609 6.67%21,107 347-50 Miscellaneous Equipment - - - - 6.67%- 348-50 Other Tangible Property 1,127,408 - - 1,127,408 2.00%22,548
348-50 Master Plan 2,384,343 - - 2,384,343 10.00%238,434
Amortization of Reserve Balance Difference 90,983 (10 Year Period)-See Depreciation Study (SUZ-W-20-02)
TOTAL 578,861,098$ (158,917,343)$ (4,530,948)$ 415,412,808$ 10,787,338$
Total Test Year Depreciation Expense 10,787,338$
Test Year Depr booked to Transportation Expense (140,248)$
Net Test Year Depreciation Expense 10,647,090$ Depreciation and Amortization Recorded at June 30, 2022 9,696,461 Test Year Adjustment 950,629$
Case No. VEO-W-22-02
Exhibit No. 10Schedule 2
D.Njuguna
I
I
Line PRESENT PROPOSEDNo.RATES RATES(1)(2)
1.OPERATING INCOME BEFORE INCOME TAXES 15,356,744$ 27,368,401$
2 Interest Expense (A)4,976,737 4,976,737
3 Excess Tax Over Book Depreciation (C)3,133,391 3,133,391
4 TOTAL TAX DEDUCTIONS 8,110,128 8,110,128
5 Taxable Income-State 7,246,616 19,258,274
6 State Income Tax at 6.000%434,797$ 1,155,496$
7 Federal Taxable Income (L.1-L.2-L.6)9,945,210$ 21,236,168$
8 Federal Income Tax at 21%2,088,494$ 4,459,595$
9 Less: Amortization of ITC (48,240)$ (48,240)$
10 NET FEDERAL INCOME TAX EXPENSE 2,040,254$ 4,411,355$
(A) CALCULATION OF INTEREST EXPENSE DEDUCTION:11 Pro Forma Rate Base 280,756,025$
12 Debt Percentage of Capitalization 44.427%
13 Debt Portion of Rate Base 124,730,248
14 Debt Rate 3.99%
15 INTEREST EXPENSE 4,976,737$
(B) CALCULATION OF ADJUSTMENT TO INTEREST EXPENSE:
16 Interest Expense for the 12 months ended June 30, 2022 4,326,018$
17 Allocation of Amortization of additional debt costs 115,052
18 Interest expense net of the amortization of additional debt costs 4,210,965
19 Direct Amortization of additional debt costs 122,942
20 Adjusted per books interest expense 4,333,907
21 Pro-forma interest expense based upon rate base and capital structure 4,976,737$
22 Adjustment to Interest Expense 642,830$
23 (C) EXCESS TAX OVER BOOK DEPRECIATION:
24 Pro Forma Tax Depreciation 10,766,376$
26 EXCESS TAX OVER BOOK DEPRECIATION (C)3,133,391$
Case No. VEO-W-22-02
Exhibit No. 10
Schedule 4
D.Njuguna
Rate Base 280,756,025$
Required Rate of Return 7.77%
Required Net Operating Income 21,814,743
Adjusted Net Operating Income Realized 12,881,693
Net Operating Income Deficiency 8,933,050
Net To Gross Multiplier 1.3573
Gross Revenue Increase less Intervenor Funding (Order 35603)12,107,227$
Net Operating Income Requirement 1.0000000 12,107,227$
IPUC Assessment Rate 0.0019950
Uncollectible Accounts Expense 0.0058986
Rate Applicable to O&M Expense & IPUC Assessment 0.0078936 95,570$
State Tax Rate 0.0600000
Effective Net State Tax Rate 0.0595264 720,699$
Federal Income Tax Residual 0.0674200
Incremental Federal Income Tax Rate 0.2100000
Effective Federal Tax Rate 0.1958418 2,371,101$
Composite:IPUC Fees, Uncollectibles & Income Taxes 0.263262 3,187,370$
Composite Residual 0.736738 8,919,857$
Net to Gross Multiplier 1.3573 12,107,227$
Case No. VEO-W-22-02
Exhibit No. 10
Schedule 4
D.Njuguna
Page 2 of 2
Line No. Rate Base Element
Exhibit 11 Schedule
Reference Basis of Calculation Amount
1 Gross Utility Plant in Service Schedule 3 End of Test Year 578,861,098$
2 Schedule 4 End of Test Year (191,267,542)
5 Schedule 6 End of Test Year (112,913,720)
Exhibit No. 11
Schedule 1
D. Njuguna
Veolia Water IdahoSummary Rate Base CalculationMonthly Balance WorksheetCase VEO-W-22-02
Line No. Rate Base Element 03/31/2022 04/30/2022 05/31/2022 06/30/2022 07/31/2022 08/31/2022 09/30/2022 10/31/2022 11/30/2022 12/31/2022 01/31/2023 02/28/2023 03/31/2023
1 Utility Plant in Service $ 543,931,773 $ 547,633,749 $ 548,809,064 $ 553,641,392 $ 556,909,475 $ 558,201,890 $ 556,339,598 $ 559,437,531 $ 566,901,734 570,485,467$ 571,495,864$ 572,516,963$ 578,861,098$
2 Gross Plant In Service 543,931,773 547,633,749 548,809,064 553,641,392 556,909,475 558,201,890 556,339,598 559,437,531 566,901,734 570,485,467 571,495,864 572,516,963 578,861,098
3 Accumulated Depreciation-Utility Plant (144,938,973) (145,196,607) (145,803,220) (145,566,086) (140,255,495) (140,950,783) (136,473,534) (137,221,331) (137,987,941)(138,654,260) (139,407,977) (140,170,414) (140,442,405) 4 Retirement Work in Progress 6,357,438 7,346,577 1,020,192 1,761,044
5 Cost of Removal Regulatory Asset 4,351,173 4,300,631 4,416,198 4,297,636
6 Accumulated Amortization CIAC (47,903,375) (48,103,191) (48,304,172) (48,505,888) (48,761,717) (49,018,004) (49,274,823) (49,532,172) (49,790,014)(50,048,425) (50,307,177) (50,566,043) (50,825,136)
7 Total Accumulated Depreciation & Amortization (182,133,737) (181,652,589) (188,671,003) (188,013,295) (189,017,212) (189,968,787) (185,748,357) (186,753,503) (187,777,955) (188,702,685) (189,715,154) (190,736,457) (191,267,542)
8 Customer Advances for Construction (3,888,694) (3,841,414) (3,841,414) (3,841,414) (3,806,314) (3,806,314) (3,806,314) (3,797,814) (3,797,814) (3,797,814) (3,797,814) (3,797,814) (3,797,814)
9 Contributions in Aid of Construction-Net (110,955,784) (111,332,644) (111,735,398) (112,827,968) (112,877,139) (112,920,852) (113,064,034) (113,106,684) (113,198,842) (113,340,431) (113,131,679) (112,972,813) (112,913,720)
10 Utility Plant Acquisition Adjustment (Net) 10,813,622 10,811,896 10,810,170 10,808,444 10,806,718 10,804,992 10,803,267 10,801,541 10,799,815 10,798,089 10,796,363 10,794,638 10,771,089
11 Accumulated Deferred Income Taxes (4,021,800) (4,137,805) (4,255,516) (4,355,877) (4,461,622) (4,567,366) (4,673,111) (4,778,855) (4,884,599) (4,990,344) (5,096,088) (5,201,832) (5,307,577)
12 Deferred Charges 4,206,740 4,167,105 4,128,955 4,090,805 4,052,655 4,014,505 3,976,355 3,938,204 3,900,054 3,861,904 3,823,754 3,785,604 4,933,851
13 Working Capital 2,998,611 2,996,422 3,258,994 3,243,959 3,278,249 3,312,540 3,346,830 3,381,120 3,415,410 3,449,700 3,483,991 3,518,281 3,552,571
14 Regulatory Liability-New Federal Tax Law (TCJA)(4,436,578) (4,284,018) (4,265,101) (4,246,184) (4,227,267) (4,208,350) (4,189,433) (4,170,516) (4,151,599) (4,132,682) (4,113,765) (4,094,848) (4,075,931)
15 Total Rate Base 260,950,732$ 264,644,720$ 258,503,853$ 262,746,047$ 264,884,811$ 265,070,608$ 267,174,234$ 269,121,541$ 275,357,803$ 277,763,887$ 277,859,237$ 273,811,720$ 280,756,025$
Case No. VEO-W-22-02
Exhibit No. 11
Schedule 2
D.Njuguna
VeoliaWater IdahoUtility Plant In Service with Forecast Additions and RetirementsCase VEO-W-22-02
Plant In Service Plant In Service Plant In Service Plant In Service Plant In ServicePlant Account
Organization 103,738 103,738 103,738 103,738 103,738 Franchise Rights 41,182 41,182 41,182 41,182 41,182 Land & Land Rights - Source of Supply 2,799,807 2,799,807 2,799,807 2,799,807 2,799,807 Water Rights - Source of Supply 8,541,209 13,482 8,554,691 13,482 8,568,173 13,482 8,581,655 13,482 8,595,137 Land & Land Rights - Water Treatment 889,034 889,034 889,034 889,034 889,034 Land & Land Rights - Trans. & Distrib.1,083,954 1,083,954 1,083,954 1,083,954 1,083,954 Land & Land Rights - General Plant 213,383 213,383 213,383 213,383 213,383 Structures and Improvements - Source of Supply 8,040,940 21,347 (500) 8,061,786 21,347 8,083,133 21,247 (500) 8,103,879 43,817 8,147,696 Structures and Improvements - Water Treatment 15,955,847 15,955,847 15,955,847 15,955,847 15,955,847 Structures and Improvements - Trans. & Distrib.3,299,161 3,299,161 3,299,161 3,299,161 3,299,161 Structures and Improvements - General Plant 6,406,267 6,406,267 6,406,267 6,406,267 6,406,267 Collecting & Impounding Reservoirs - Source of Supply 44,944 44,944 44,944 44,944 44,944 Lake, River & Other Intakes 1,518,794 1,518,794 1,518,794 1,518,794 1,518,794 Wells & Springs 9,705,834 9,705,834 9,705,834 9,705,834 9,705,834 Infiltration Galleries & Tunnels - - - - - Supply Mains 3,073,139 3,073,139 3,073,139 3,073,139 3,073,139 Power Generation Equipment 3,598,737 3,598,737 3,598,737 3,598,737 3,598,737 Power Electric Pumping Equipment - Source of Supply 17,900,668 81,545 (5,800) 17,976,413 81,945 (5,800) 18,052,558 82,345 (5,800) 18,129,103 82,745 (5,800) 18,206,048 Power Diesel Pumping Equipment - Source of Supply - - - - - Power Pumping Equipment - Water Treatment 4,672,578 4,672,578 4,672,578 4,672,578 4,672,578 Power Pumping Equipment - Trans. & Distrib. 8,631,617 11,235 (2,000) 8,640,852 11,235 (2,000) 8,650,087 11,235 (2,000) 8,659,322 10,235 (2,000) 8,667,557 Water Treatment Equipment 35,312,079 101,015 (15,600) 35,397,494 157,090 (15,600) 35,538,984 98,015 (15,600) 35,621,399 101,015 (15,600) 35,706,814 Water Treatment Equipment - Membranes 1,349,394 1,349,394 1,349,394 1,349,394 1,349,394 Distribution Reservoirs & Standpipes 13,850,954 13,850,954 13,850,954 13,850,954 13,850,954 Trans. & Distrib. Mains & Accessories - Intangible - - - - - Trans. & Distrib. Mains & Accessories - SOS - - - - - Trans. & Distrib. Mains & Accessories 252,170,678 2,502,117 (330) 254,672,465 371,118 (330) 255,043,252 2,294,857 (6,380) 257,331,730 2,312,538 (7,730) 259,636,537 Services 103,135,747 300,445 (12,000) 103,424,192 300,445 (12,000) 103,712,637 300,445 (12,000) 104,001,082 300,445 (12,000) 104,289,527 Meters and Meter Installations 18,285,758 153,943 (30,000) 18,409,701 153,943 (30,000) 18,533,644 153,943 (30,000) 18,657,587 153,943 (30,000) 18,781,530 Hydrants 15,341,299 79,993 15,421,292 79,993 15,501,286 79,993 15,581,279 79,993 15,661,272 Backflow Prevention Devices - - - - - Other Plant & Misc. Equipment - Intangible - - - - - Other Plant & Misc. Equipment - Source of Supply - - - - - Other Plant & Misc. Equipment - Water Treatment - - - - - Other Plant & Misc. Equipment - Trans. & Distrib.- - - - - Other Plant & Misc. Equipment - General Plant - - - - - Office Furniture and Equipment 1,249,944 1,249,944 1,249,944 1,249,944 1,249,944 New CIS System 5,225,079 5,225,079 5,225,079 (5,225,079) - - AM / FM System - - - - - Computer Equipment - Hardware 106,544 6,741 (800) 112,485 213,613 (57,300) 268,797 6,741 (800) 274,738 6,241 (800) 280,179 IT Initiatives - - - - - Computer Equipment - Software 71,891 71,891 71,891 71,891 71,891 Transportation Equipment 752,697 752,697 752,697 362,329 1,115,026 1,115,026 Stores Equipment 216,241 216,241 216,241 216,241 216,241 Tools, Shop and Garage Equipment 1,709,325 11,235 1,720,560 11,235 1,731,795 11,235 1,743,030 11,235 1,754,265 Confined Space Monitor, Generator, Trench Shield - - - - - Laboratory Equipment 74,312 74,312 74,312 74,312 74,312 Power Operated Equipment 877,766 877,766 877,766 877,766 877,766 Power Operated Equipment - - - - - Communications Equipment 4,860,649 20,111 4,880,760 4,880,760 4,880,760 4,880,760 Miscellaneous Equipment 176,171 176,171 176,171 176,171 176,171 Miscellaneous Equipment - - - - - Other Tangible Property 1,127,408 1,127,408 1,127,408 1,127,408 1,127,408 Master Plan 1,226,621 31,907 1,258,529 1,258,529 1,258,529 56,175 1,314,704
Case No. VEO-W-22-02Exhibit No. 11
Schedule 3
D.Njuguna
VeoliaWater IdahoUtility Plant In Service with Forecast Additions and RetirementsCase VEO-W-22-02
Plant Account
OrganizationFranchise RightsLand & Land Rights - Source of SupplyWater Rights - Source of SupplyLand & Land Rights - Water TreatmentLand & Land Rights - Trans. & Distrib.Land & Land Rights - General PlantStructures and Improvements - Source of SupplyStructures and Improvements - Water TreatmentStructures and Improvements - Trans. & Distrib.Structures and Improvements - General PlantCollecting & Impounding Reservoirs - Source of SupplyLake, River & Other IntakesWells & SpringsInfiltration Galleries & TunnelsSupply MainsPower Generation EquipmentPower Electric Pumping Equipment - Source of SupplyPower Diesel Pumping Equipment - Source of SupplyPower Pumping Equipment - Water TreatmentPower Pumping Equipment - Trans. & Distrib. Water Treatment EquipmentWater Treatment Equipment - MembranesDistribution Reservoirs & StandpipesTrans. & Distrib. Mains & Accessories - IntangibleTrans. & Distrib. Mains & Accessories - SOSTrans. & Distrib. Mains & AccessoriesServicesMeters and Meter InstallationsHydrantsBackflow Prevention DevicesOther Plant & Misc. Equipment - IntangibleOther Plant & Misc. Equipment - Source of SupplyOther Plant & Misc. Equipment - Water TreatmentOther Plant & Misc. Equipment - Trans. & Distrib.Other Plant & Misc. Equipment - General PlantOffice Furniture and EquipmentNew CIS SystemAM / FM System Computer Equipment - Hardware IT Initiatives Computer Equipment - SoftwareTransportation EquipmentStores EquipmentTools, Shop and Garage EquipmentConfined Space Monitor, Generator, Trench ShieldLaboratory EquipmentPower Operated EquipmentPower Operated EquipmentCommunications EquipmentMiscellaneous EquipmentMiscellaneous EquipmentOther Tangible PropertyMaster Plan
578,861,098 Case No. VEO-W-22-02Exhibit No. 11
Schedule 3
D.Njuguna
I
Line No.Description 03/31/2022 04/30/2022 05/31/2022 06/30/2022 07/31/2022 08/31/2022 09/30/2022 10/31/2022 11/30/2022 12/31/2022 01/31/2023 02/28/2023 03/31/2023
1 Accumulated Depreciation-Recorded (134,230,362)$ (133,549,398)$ (140,366,831)$ (139,507,406)$
2 Incremental Depreciation (817,719)$ (823,017)$ (829,211)$ (835,827)$ (845,640)$ (859,949)$ (868,548)$ (871,167)$ (881,909)$
3 Retirements 67,030 123,030 5,298,159 73,930 75,930 169,430 106,930 99,430 569,518
4 Cost of Removal 4,300 6,400 10,000 15,800 4,800 25,900 9,600 11,000 42,100
5 Salvage (1,700) (1,700) (1,700) (1,700) (1,700) (1,700) (1,700) (1,700) (1,700) 6 Total Accumulated Depreciation (134,230,362) (133,549,398) (140,366,831) (139,507,406) (140,255,495) (140,950,783) (136,473,534) (137,221,331) (137,987,941) (138,654,260) (139,407,977) (140,170,414) (140,442,405)
7 CIAC Amortization -Recorded (47,903,375) (48,103,191) (48,304,172) (48,505,888)
8 Incremental CIAC Amortization (255,829)(256,288)(256,818)(257,349)(257,842)(258,411)(258,752)(258,866)(259,093)
9 Total CIAC Amortization (47,903,375)$ (48,103,191)$ (48,304,172)$ (48,505,888)$ (48,761,717)$ (49,018,004)$ (49,274,823)$ (49,532,172)$ (49,790,014)$ (50,048,425)$ (50,307,177)$ (50,566,043)$ (50,825,136)$
Case No. VEO-W-22-02
Exhibit No. 11Schedule 4
D. Njuguna
Line No.
Supply and
Pumping
Supply and
Pumping
Plant:
Structures &
Supply:
Structures &
Improvement
Supply and
Pumping
Supply and
Pumping
Supply and
Pumping:
Power
Generation
Supply and
Pumping
Supply and
Pumping
Equipment
Treatment
Plant:
Water
Treatment
Distribution Plant:
Monthly
1 Beginning Balance Jun 30, 2022 $6,986 $387,217 ($3,644)$566,333 ($8,485)$132,638 $40,115 ($1,761)$473,841 ($23,337)$12,775 $827,861 $2,135,602 $228,199 $6,986 ($206,779)($733,134)$3,841,414
2 Jul 22 Activity (35,100) (35,100)
3 Jul 22 Balance 6,986 387,217 (3,644)566,333 (8,485)132,638 40,115 (1,761)473,841 (58,437)12,775 827,861 2,135,602 228,199 6,986 (206,779)(733,134)3,806,314
4 Aug 22 Activity -
5 Aug 22 Balance 6,986 387,217 (3,644)566,333 (8,485)132,638 40,115 (1,761)473,841 (58,437)12,775 827,861 2,135,602 228,199 6,986 (206,779)(733,134)3,806,314
67 Sept 22 Balance 6,986 387,217 (3,644) 566,333 (8,485) 132,638 40,115 (1,761) 473,841 (58,437) 12,775 827,861 2,135,602 228,199 6,986 (206,779) (733,134)3,806,314
8
9 Oct 22 Balance 6,986 387,217 (3,644) 566,333 (8,485) 132,638 40,115 (1,761) 473,841 (66,937) 12,775 827,861 2,135,602 228,199 6,986 (206,779) (733,134) 3,797,814
1011 Nov 22 Balance 6,986 387,217 (3,644) 566,333 (8,485) 132,638 40,115 (1,761) 473,841 (66,937) 12,775 827,861 2,135,602 228,199 6,986 (206,779) (733,134) 3,797,814
12
13 Dec 22 Balance 6,986 387,217 (3,644) 566,333 (8,485) 132,638 40,115 (1,761) 473,841 (66,937) 12,775 827,861 2,135,602 228,199 6,986 (206,779) (733,134) 3,797,814
1415 Jan 23 Balance 6,986 387,217 (3,644) 566,333 (8,485) 132,638 40,115 (1,761) 473,841 (66,937) 12,775 827,861 2,135,602 228,199 6,986 (206,779) (733,134) 3,797,814
16
17 Feb 23 Balance 6,986 387,217 (3,644) 566,333 (8,485) 132,638 40,115 (1,761) 473,841 (66,937) 12,775 827,861 2,135,602 228,199 6,986 (206,779) (733,134) 3,797,814
18
19 Ending Balance-March 2023 $6,986 $387,217 ($3,644)$566,333 ($8,485)$132,638 $40,115 ($1,761)$473,841 ($66,937)$12,775 $827,861 $2,135,602 $228,199 $6,986 ($206,779)($733,134)3,797,814$
Case No. VEO-W-22-02Exhibit No. 11
Schedule 5
D. Njuguna
Line No
Supply and
Land & Land
Supply and
Structures &
Supply and
Collecting &
Impounding
Supply and
Pumping
Supply and
Pumping
Supply and
Pumping
Plant:
Pumping
Treatment
Plant: Water
Treatment
Distribution Meters &
Meter Furniture &
Plant:
Laboratory Monthly Monthly
Balance CIAC
1
2 Jul 22 Activity 305,000 305,000
3 Jul 22 Balance 9,878 341,987 406,800 72,696 1,405,459 9,391 2,598,395 34,619 2,108,957 115,269,703 29,346,963 116,799 4,958,160 393 16,847 120,295 4,821,514 161,638,856 (48,761,717)112,877,139
4 Aug 22 Activity 300,000 300,000
5 Aug 22 Balance 9,878 341,987 406,800 72,696 1,405,459 9,391 2,598,395 34,619 2,108,957 115,569,703 29,346,963 116,799 4,958,160 393 16,847 120,295 4,821,514 161,938,856 (49,018,004)112,920,852
6 Sept 22 Activity 400,000 400,000 7 Sept 22 Balance 9,878 341,987 406,800 72,696 1,405,459 9,391 2,598,395 34,619 2,108,957 115,969,703 29,346,963 116,799 4,958,160 393 16,847 120,295 4,821,514 162,338,856 (49,274,823)113,064,034
8 Oct 22 Activity 300,000 300,000 9 Oct 22 Balance 9,878 341,987 406,800 72,696 1,405,459 9,391 2,598,395 34,619 2,108,957 116,269,703 29,346,963 116,799 4,958,160 393 16,847 120,295 4,821,514 162,638,856 (49,532,172)113,106,684
10 Nov 22 Activity 350,000 350,000 11 Nov 22 Balance 9,878 341,987 406,800 72,696 1,405,459 9,391 2,598,395 34,619 2,108,957 116,619,703 29,346,963 116,799 4,958,160 393 16,847 120,295 4,821,514 162,988,856 (49,790,014)113,198,842
12 Dec 22 Activity 400,000 400,000 13 Dec 22 Balance 9,878 341,987 406,800 72,696 1,405,459 9,391 2,598,395 34,619 2,108,957 117,019,703 29,346,963 116,799 4,958,160 393 16,847 120,295 4,821,514 163,388,856 (50,048,425)113,340,431
14 Jan 23 Activity 50,000 50,000 15 Jan 23 Balance 9,878 341,987 406,800 72,696 1,405,459 9,391 2,598,395 34,619 2,108,957 117,069,703 29,346,963 116,799 4,958,160 393 16,847 120,295 4,821,514 163,438,856 (50,307,177)113,131,679
16 Feb 23 Activity 100,000 100,000 17 Feb 23 Balance 9,878 341,987 406,800 72,696 1,405,459 9,391 2,598,395 34,619 2,108,957 117,169,703 29,346,963 116,799 4,958,160 393 16,847 120,295 4,821,514 163,538,856 (50,566,043)112,972,813
18 Mar 23 Activity 200,000 200,000
19 Ending Balance-March 31, 2023 $9,878 $341,987 $406,800 $72,696 $1,405,459 $9,391 $2,598,395 $34,619 $2,108,957 $117,369,703 $29,346,963 $116,799 $4,958,160 $393 $16,847 $120,295 $4,821,514 $163,738,856 ($50,825,136)$112,913,720
Case No. VEO-W-22-02Exhibit No. 11Schedule 6
D. Njuguna
Line No.Acquistion Description
Company IPUC Order Amortization
Utility Plant Acquisition Adjustment
Accumulated Amortization of UPAA Through Unamortized Balance at Monthly Amortization
1 Warm Springs Mesa X00009 Aug-96 20 Years $62,302 ($62,302)$0 $02Redwood Creek X00010 May-95 20 Years (110,249)110,249 0 03Island Woods X00011 Apr-95 20 Years (179,675)179,675 0 04RaintreeX00014Sep-00 40 Years (227,594)124,262 (103,332)474
5 South County Water X00020 Jan-99 40 Years 1,009,011 (592,815)416,196 (2,102)6 Barber Water X00027 Jan-99 40 Years 46,966 (26,386)20,580 (98)7 Eagle Water ACQ_EAGLE XXXX 40 Years 10,475,000 0 10,475,000 (21,823)Beginning 03/2023$11,075,761 ($267,317)$10,808,444 ($1,726)
Annual Amortization Amount $282,585
8 June-22 $10,808,4449July-22 (1,726)10,806,718 10 August-22 (1,726)10,804,992 11 September-22 (1,726)10,803,267 12 October-22 (1,726)10,801,541 13 November-22 (1,726)10,799,815 14 December-22 (1,726)10,798,089 15 January-23 (1,726)10,796,363 16 February-23 (1,726)10,794,638
17 March-23 (23,549)10,771,089
Case No. VEO-W-22-02
Exhibit No. 11
Schedule 7D. Njuguna
Veolia Water IdahoCase VEO-W-22-02
Accumulated Deferred Income Taxes as of March 31, 2023
Line No.Account & Description Balance at Mar 31, 2022 Balance at Apr 30, 2022 Balance at May 31, 2022 Balance at Jun 30, 2022 Balance at Jul. 31, 2022 Balance at Aug 31, 2022 Balance at Sept 30, 2022 Balance at Oct 31, 2022 Balance at Nov 30, 2022 Balance at Dec 31, 2022 Balance at Jan 31, 2023 Balance at Feb 28, 2023 Balance at Mar 31, 2023 Balance at March 31, 2023 Test Year Adjustments
1 Accumulated Deferred FIT-MACRS 2,618,914$ 2,689,857$ 2,772,323$ 2,799,649$ 2,861,324 2,922,999$ 2,984,674$ 3,046,349$ 3,108,024$ 3,169,698$ 3,231,373$ 3,293,048$ 3,354,723$ 3,354,723$ 555,074$ 2 Accumulated Deferred FIT Cost of Removal 987,536 1,003,797 1,025,512 1,087,689 1,087,689 1,087,689 1,087,689 1,087,689 1,087,689 1,087,689 1,087,689 1,087,689 1,087,689 1,087,689 -$ 3 Accumulated Deferred FIT AFUDC Equity 469,744 471,625 479,013 486,719 486,719 486,719 486,719 486,719 486,719 486,719 486,719 486,719 486,719 486,719 -$ 4 Accumulated Deferred FIT AFUDC Equity Gross Up 156,520 156,670 158,610 160,762 189,219 217,676 246,134 274,591 303,048 331,505 359,962 388,419 416,876 416,876 256,114$ 5 Def. FIT-Tank Painting 467,462 465,155 465,206.47 462,817 471,283 479,749 488,215 496,681 505,147 513,613 522,079 530,545 539,011 539,011 76,193$ 6 Def FIT - New Federal Tax Rate (875,781) (845,665) (841,931) (838,197) (834,463) (830,728) (826,994) (823,260) (819,526) (815,791) (812,057) (808,323) (804,589) (804,589) 33,608$ 7 Def FIT - Deferred Power-(Approved)168,005 167,603 168,507 168,802 173,505 178,208 182,912 187,615 192,318 197,021 201,724 206,427 211,131 211,131 42,329$ 8 Def FIT- Deferred Convenience Fees 29,399 28,762 28,275 27,635 26,344 25,053 23,762 22,471 21,180 19,889 18,598 17,307 16,017 16,017 (11,618)$
9 Accumulated Deferred Income Taxes 4,021,800$ 4,137,805$ 4,255,516$ 4,355,877$ 4,461,622$ 4,567,366$ 4,673,111$ 4,778,855$ 4,884,599$ 4,990,344$ 5,096,088$ 5,201,832$ 5,307,577$ 5,307,577$ 951,699$
10 Pro Forma Tax Depreciation-State 10,766,376$ 11 Pro Forma Book Depreciation 7,632,986
12 Excess Tax Over Book Depreciation 3,133,391$ 13 State Income Tax Rate 6.00%14 Incremental State Deferred Income Tax 188,003
15 Pro Forma Tax Depreciation-Federal 10,464,199$ 16 Pro Forma Book Depreciation 7,632,986 17 Excess Tax Over Book Depreciation 2,831,213 18 Less: State Deferred Income Tax 188,003 19 Federal Amount 2,643,21020Federal Income Tax Rate 21.00%21 Incremental Federal Deferred Income Tax 555,074$
Case No. VEO-W-22-02Exhibit No. 11
Schedule 8D. Njuguna
Months4/30/2021 6/30/2022 144/30/2021 5/31/2022 134/30/2021 4/30/2022 124/30/2021 3/31/2022 11Line No.Amounts Approved In Case UWI-W-04-04:
Description Approved Balance at Period in Monthly Jul 21.through Mar.23 Unamortized Unamortized Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at
1 Deferred Rents ( Lakewood Well Lease)19,090$ 10,028$ 600$ 46$ 414$ 9,614$ 10,166$ 10,120$ 10,074$ 10,028$ 9,982$ 9,936$ 9,890$ 9,844$ 9,798$ 9,752$ 9,706$ 9,660$ 9,614$ 2 Deferred Tank Painting-Gowen External 39,808 7,796 240 166 1,493 6,303 8,293 8,128 7,962 7,796 7,630 7,464 7,298 7,132 6,967 6,801 6,635 6,469 6,3033Deferred Tank Painting-Aeronica 21,100 4,132 240 88 791 3,341 4,396 4,308 4,220 4,132 4,044 3,956 3,869 3,781 3,693 3,605 3,517 3,429 3,3414Deferred AFUDC Equity Income 696,346 564,814 360 1,934 17,409 547,405 570,617 568,683 566,748 564,814 562,880 560,945 559,011 557,077 555,143 553,208 551,274 549,340 547,405
5 Sub Total $776,344 $586,770 $2,234 $20,107 $566,663 $593,472 $591,238 $589,004 $586,770 $584,536 $582,302 $580,068 $577,834 $575,600 $573,366 $571,132 $568,898 $566,663
6 Deferred Tank Painting-Federal Reservoir 162,895 40,045 240 679 6,109 33,937 42,081 41,403 40,724 40,045 39,366 38,688 38,009 37,330 36,651 35,973 35,294 34,615 33,9377Deferred AFUDC Equity Income 232,342 188,455 360 645 5,809 182,647 190,391 189,746 189,101 188,455 187,810 187,164 186,519 185,874 185,228 184,583 183,937 183,292 182,647
8 Sub Total $395,237 $228,500 $1,324 $11,917 $216,583 $232,473 $231,149 $229,824 $228,500 $227,176 $225,852 $224,528 $223,204 $221,880 $220,556 $219,231 $217,907 $216,583
9 Deferred Tank Painting-Ustick 74,183 31,517 240 309 2,782 28,735 32,444 32,135 31,826 31,517 31,208 30,899 30,589 30,280 29,971 29,662 29,353 29,044 28,73510Deferred Tank Painting-Steelhead 313,493 133,325 240 1,306 11,756 121,569 137,244 135,937 134,631 133,325 132,019 130,712 129,406 128,100 126,794 125,488 124,181 122,875 121,56911Deferred Tank Painting-Crestline 65,628 27,840 240 273 2,461 25,379 28,660 28,387 28,113 27,840 27,566 27,293 27,019 26,746 26,472 26,199 25,926 25,652 25,379
12 Sub Total $453,304 $192,681 $1,889 $16,999 $175,682 $198,348 $196,459 $194,570 $192,681 $190,793 $188,904 $187,015 $185,126 $183,237 $181,349 $179,460 $177,571 $175,682
13 Deferred Tank Painting-Hillcrest 230,134 119,877 240 959 8,630 111,247 122,753 121,794 120,835 119,877 118,918 117,959 117,000 116,041 115,082 114,123 113,164 112,205 111,247
14 Sub Total $230,134 $119,877 $959 $8,630 $111,247 $122,753 $121,794 $120,835 $119,877 $118,918 $117,959 $117,000 $116,041 $115,082 $114,123 $113,164 $112,205 $111,247
15 Deferred Tank Painting-Gowen Internal 208,050 149,102 240 867 7,802 141,300 151,702 150,835 149,968 149,102 148,235 147,368 146,501 145,634 144,767 143,900 143,033 142,167 141,30016Deferred AFUDC Equity Income 343,736 278,808 360 955 8,593 270,214 281,672 280,717 279,763 278,808 277,853 276,898 275,943 274,989 274,034 273,079 272,124 271,169 270,21417Sub Total 551,785$ 427,909$ 1,822$ 16,395$ 411,514$ 433,374$ 431,553$ 429,731$ 427,909$ 426,088$ 424,266$ 422,444$ 420,623$ 418,801$ 416,979$ 415,158$ 413,336$ 411,514$
18 Deferred Tank Painting-Barber Tank-Internal 338,037 318,318 240 1,408 12,676 305,642 322,544 321,135 319,727 318,318 316,910 315,501 314,093 312,684 311,276 309,867 308,459 307,050 305,64219Deferred Tank Painting-Hulls Gulch Internal 1,135,161 1,068,943 240 4,730 42,569 1,026,374 1,087,862 1,078,403 1,073,673 1,068,943 1,064,213 1,059,483 1,054,753 1,050,023 1,045,294 1,040,564 1,035,834 1,031,104 1,026,37420Deferred Tank Painting-Hulls Gulch External 213,330 200,886 240 889 8,000 192,886 203,552 202,664 201,775 200,886 199,997 199,108 198,219 197,330 196,441 195,553 194,664 193,775 192,88621Deferred Tank Painting-Hidden Hollow (Exterior)102,317 96,349 240 426 3,837 92,512 97,627 97,201 96,775 96,349 95,922 95,496 95,070 94,643 94,217 93,791 93,364 92,938 92,51222Deferred Rate Case Expense 119,464 84,620 48 2,489 22,400 62,221 92,087 89,598 87,109 84,620 82,132 79,643 77,154 74,665 72,176 69,687 67,199 64,710 62,221
23 155,784 110,347 48 3,246 29,210 81,138 116,838 116,838 113,593 110,347 107,102 103,856 100,611 97,365 94,120 90,874 87,629 84,383 81,138
Sub Total 2,953,984$ 2,535,067$ 29,923$ 269,303$ 2,265,764$ 2,626,319$ 2,594,913$ 2,564,990$ 2,535,067$ 2,505,145$ 2,475,222$ 2,445,300$ 2,415,377$ 2,385,455$ 2,355,532$ 2,325,609$ 2,295,687$ 2,265,764$
New Items Proposed in Period in Monthly Proposed Annual New Items Proposed in New Items Proposed in New Items Proposed in New Items Proposed in New Items New Items Proposed in New Items Proposed in New Items New Items Proposed in New Items Proposed in New Items New Items Proposed in New Items Proposed in
27 Deferred Tank Painting-Broken Horn 65,239 240 272 3,262 65,239 0 0 0 0 0 0 0 0 0 0 0 0 65,23928Deferred Tank Painting-Columbia 126,088 240 525 6,304 126,088 0 0 0 0 0 0 0 0 0 0 0 0 126,08829Deferred Tank Painting-Hidden Hollow (Interior)450,000 240 1,875 22,500 450,000 0 0 0 0 0 0 0 0 0 0 0 0 450,00030Deferred Rate Case Expense 343,620 24 16,910 202,920 343,620 0 0 0 0 0 0 0 0 0 0 0 0 343,62031Deferred AFUDC Equity Income (456,680)360 (1,269)(15,223)(456,680)0 0 0 0 0 0 0 0 0 0 0 0 (456,680)32 Deferred Power Costs 658,130 24 44,565 534,779 658,130 0 0 0 0 0 0 0 0 0 0 0 0 658,130
33 Sub Total $1,186,397 $62,879 $754,543 $1,186,397 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,186,397
34 Grand Total $5,277,202 $101,029 $1,097,894 $4,933,851 $4,206,740 $4,167,105 $4,128,955 $4,090,805 $4,052,655 $4,014,505 $3,976,355 $3,938,204 $3,900,054 $3,861,904 $3,823,754 $3,785,604 $4,933,851
Case No. VEO-W-22-02
Exhibit No. 11
Schedule 9D. Njuguna
Veolia Water IdahoCase No. VEO-W-22-02Working Capital Calculation
Working Capital Calculation Test Year
Line No. Description Working Capital : Working Capital : Capital : Capital : Capital : Capital : Capital : Capital : Capital : Capital : Capital : Working Capital: Adjustment
1 Total Operating & Maintenance Expense 15,617,772$ 15,483,789$ 17,611,086$ 17,656,607$ 22,387,625$ 4,731,018$
Adjustments:2 Amortization-Deferred Rate Case Expenses 49,471 51,960 51,960 51,960 202,923 150,963 3 Amortization-Deferred Relocation - - - - - - 4 Amortization-Deferred Tank Painting 137,763 145,217 145,217 145,217 177,283 32,066 5 Amortization-Deferred Pension 437,602 477,384 477,384 477,384 23,218 (454,166) 6 Amortization-Deferred Power 181,027 197,484 197,484 197,484 534,778 337,294 7 Amortization-Deferred AFUDC Equity Gross Up 41,551 40,792 39,758 39,758 30,523 (9,235)
8
Case No. VEO-W-22-02Exhibit No. 11Schedule 10D. Njuguna
Actual Actual Actual Actual Forecasted Forecasted Forecasted Forecasted Forecasted Forecasted Forecasted Forecasted Forecasted
Line No.Account & Description Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at
1 (4,436,578)(4,284,018)(4,265,101)(4,246,184)(4,227,267) (4,208,350) (4,189,433) (4,170,516) (4,151,599) (4,132,682) (4,113,765) (4,094,848) (4,075,931)
Total ($4,436,578)($4,284,018)($4,265,101)($4,246,184)($4,227,267)($4,208,350)($4,189,433)($4,170,516)($4,151,599)($4,132,682)($4,113,765)($4,094,848)($4,075,931)[1]
[1]Refer to Exhibit 12 sponsored by Witness M. Kahn Case No. VEO-W-22-02Exhibit No. 11Schedule 11D. NjugunaPage 1 of 1
Veolia Water IdahoCase VEO-W-22-02Regulatory Liability-New Federal Tax Law as of March 31, 2023