20220930Wilson 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 MICHAEL WILSON FOR VEOLIA WATER IDAHO, INC. SEPTEMBER 2022
WILSON, DI 2
Veolia Water Idaho, Inc.
Q. Please state your name and business address. 1
A. Michael Wilson, 8248 West Victory Road, Boise, Idaho 83709. 2
Q. By whom are you employed and in what capacity? 3
A. I am employed by Veolia Water Idaho, Inc. (“Veolia”, “Veolia Water Idaho” or 4
“Company”) in the capacity of Manager - Financial Planning, Reporting & 5
Analysis. 6
Q. How long have you been employed by Veolia Water Idaho? 7
A. I have been employed by Veolia Water Idaho (formerly SUEZ Water Idaho Inc. 8
and prior to that, United Water Idaho Inc.) since August 2004. 9
Q. Briefly describe your responsibilities during your tenure. 10
A. On January 8, 2022 I was promoted to Manager - Financial Planning, Reporting & 11
Analysis. In this position, I direct the preparation, consolidation, and presentation 12
of financial planning processes such as the annual operating budget, reforecasting, 13
medium term plan, and monthly variance analysis. I lead the response to internal 14
and external audit inquiries, including the Idaho Public Utilities Commission, 15
(“IPUC”) audit of the Pollution Control Exemption filing. Additionally, I prepare 16
the annual reports for the IPUC and Idaho State Tax Commission. 17
Prior to my promotion as Manager, I was in a Supervisor role for two years 18
performing similar job functions. Leading up to my Supervisor role, I held the title 19
of Sr. Financial Analyst for approximately 17 months which was a promotion from 20
my initial role as Accounting/Finance Clerk. In that role, I built foundational 21
knowledge of regulatory accounting performing a variety of functions including 22
payroll, accounts payable, journal entry, and general ledger account reconciliation. 23
WILSON, DI 3
Veolia Water Idaho, Inc.
Over the course of my career at Veolia, I have assisted in rate case data preparation 1
and production responses. 2
Q. What is your educational background? 3
A. I was granted a Bachelor of Science in Computer Science from Steven-Henager 4
College in 2008 and a Bachelor of Science in Business Administration from Lewis-5
Clark State College in 2000. I also attended NARUC Utility Rate School in the fall 6
of 2020. 7
Q. In connection with the Company’s current application for an increase in rates 8
and charges, what is the scope of your participation and testimony? 9
A. My participation and testimony concerns operating expenses of the Company. For 10
this rate case filing, Veolia Water Idaho used a historic test year consisting of a 12-11
month period ending on June 30, 2022 (“Historic Test Year”) and a nine-month 12
adjustment period ending on March 31, 2023 (“Test Year”). For the Historic Test 13
Year data, Veolia has relied on its books and records, which are prepared and 14
maintained in conformity with the Uniform System of Accounts prescribed by the 15
Commission. As discussed in more detail below, the operating expenses included 16
in the exhibits I am sponsoring are based on the Historic Test Year, as modified by 17
certain normalizing adjustments. The Historic Test Year expenses are also adjusted 18
for changes in costs expected to take place in the adjustment period (or prior to 19
effective date of the rates) and measurable with a reasonable accuracy at the time 20
of this rate case filing. 21
Q. What exhibits are used to illustrate your testimony? 22
A. The following Exhibits accompanying my testimony: 23
WILSON, DI 4
Veolia Water Idaho, Inc.
▪ Exhibit 10, Schedule 1 – Operating Expense Adjustments: 1
▪ Adjustment No. 6 – Employee 401k 2
▪ Adjustment No. 7 – Other Employee Benefits - Tuition 3
▪ Adjustment No. 9 – Purchased Water 4
▪ Adjustment No. 14 – Bad Debt 5
▪ Adjustment No. 15 – Materials 6
▪ Adjustment No. 16 – Vehicle Allocation 7
▪ Adjustment No. 18 – Advertising 8
▪ Adjustment No. 21 – IPUC Fees 9
▪ Exhibit 10, Schedule 3 – Payroll Taxes: 10
▪ Adjustment No. 2 – FICA Tax 11
▪ Adjustment No. 3 – Federal Unemployment Insurance Tax 12
▪ Adjustment No. 4 – State Unemployment Insurance Tax 13
Q. Please describe the approach you have taken in preparing the exhibits for 14
operating expenses. 15
A. I have relied on information and data produced within the Company, and my own 16
investigation thereof, as the basis for adjustments in order to appropriately reflect 17
the costs expected to be incurred during the period rates will be in effect as a result 18
of this filing. 19
Q. Please describe the various normalizing and annualizing adjustments, as well 20
as known and measurable adjustments, made to operating expenses as 21
demonstrated in Exhibit 10, Schedule 1. 22
WILSON, DI 5
Veolia Water Idaho, Inc.
A. Adjustment No. 6, Employee 401k, increases Historic Test Year Employee 1
401k expense by $71,977. The Historic Test Year amount is $384,454 and the Test 2
Year amount is $456,431. The Historic Test Year level of participation as a 3
percentage of 401k expense to gross payroll less incentives is 4.16%. This rate is 4
applied to the Test Year level of gross payroll minus incentives of $10,981,000 as 5
shown on Adjustment No. 1, supported by Company witness Cary. 6
Adjustment No. 7, Other Employee Benefits - Tuition, increases Historic 7
Test Year expense by $1,602 for tuition assistance. The Historic Test Year expense 8
is $13,032 for 122 employees and the Test Year amount is $14,634 based on the 9
Historic Test Year ratio of expense to employees and applied to 137 Test Year 10
employees. 11
Adjustment No. 9, Purchased Water, decreases purchased water expense by 12
$61,608 from the Historic Test Year level of $378,302, to a Test Year level of 13
$316,694. The Historic Test Year included two natural flow water bank rental fees 14
due to timing of the payments. The adjusted Test Year expense includes only one. 15
Company Witness Cooper provides an explanation of the Company’s purchased 16
water program in her testimony. 17
Adjustment No.14, Bad Debt, increases bad debt expense by $13,321 from 18
the Historic Test Year level of $291,742 to a Test Year amount of $305,063. 19
Adjustments to the allowance for uncollectible reserves (Account 90405) are 20
removed from the uncollectible expense calculation. The Test Year amount is based 21
on a Historic Test Year bad debt expense to revenue ratio 0.5899% applied to the 22
Test Year revenue at current rates of $51,717,859. Collection activities stopped in 23
WILSON, DI 6
Veolia Water Idaho, Inc.
March of 2020 due to the Covid-19 pandemic. Collections resumed as a phase-in 1
approach during 2021 and reached a normal threshold collection level in April 2021 2
for Commercial customers and May 2022 for Residential customers. 3
Adjustment No. 15, Materials, adjusts the Historic Test Year expense of 4
$278,045 by $28,279 to a Test Year amount of $306,324. The adjustment increases 5
the Historic Test Year by $31,223 in maintenance material costs excluded from 6
50635 (Chemical expense – Adjustment No. 11 as discussed in Company witness 7
Cary’s testimony) and decreases the Historic Test Year by $2,944 for a capital 8
expenditure reclassification. 9
Adjustment No. 16, Vehicle Allocation, increases net expense by $467,768 10
from the adjusted Historic Test Year level of $557,581 to a Test Year amount of 11
$1,025,350. The Company uses a vehicle allocation process to distribute 12
transportation costs to the applicable income statement or balance sheet accounts. 13
All components of gross vehicle costs such as lease payments net of proceeds from 14
disposal, fuel, maintenance materials and outside contractors, mechanic payroll and 15
benefits, insurance, depreciation, GPS service and others are coded to a clearing 16
account on the Company’s balance sheet. On a monthly basis, these costs are 17
cleared to expense or capitalized based upon the time allocation of departments 18
with assigned vehicles. The Historic Test Year allocation of gross costs to 19
operations and maintenance net expense is 56.587%. 20
Gross costs in the Historic Test Year were $1,469,615 and increased to a 21
Test Year amount of $1,811,996. Applying the Historic Test Year allocation of 22
56.587% results in a Historic Test Year net expense of $832,494 and Test Year of 23
WILSON, DI 7
Veolia Water Idaho, Inc.
$1,025,350. The increase is predominantly driven by increased lease costs and 1
higher fuel prices. 2
Per books, the Historic Test Year net expense amount is $832,494 which is 3
then adjusted to exclude test year IBNR (Incurred but not reported claim reserves) 4
of $329,806 and include auto insurance claims payments (GL Account 26200, Cost 5
Element 682005) of $54,893 resulting in an adjusted Historic Test Year amount of 6
$557,581. 7
Net expense lease costs, net of proceeds, are increasing in the Test Year by 8
$234,003. The increase is driven by the addition of one vehicle for new staff and 9
the replacement of 22 vehicles whose paid-off monthly lease costs are either $13 10
or $27 monthly depending on the lease provider. These vehicles are being replaced 11
due to general wear and tear, high mileage, and some maintenance issues. The 12
availability of replacement vehicles was restricted over the last two years due to 13
production issues by vehicle manufacturers. 14
As lease agreements expire, vehicles are ultimately disposed of, and any 15
proceeds flow back into the vehicle allocation process and reduce gross costs to be 16
allocated. The Company projects the proceeds will result in a normalized annual 17
amount of $10,500 based on a 3-year average. 18
Projected fuel prices are reflected in the Test Year as $4.68 per gallon for 19
gasoline and $5.19 per gallon for diesel per AAA average price in Boise on 20
September 1, 2022. Historic Test Year average prices were $4.05 for regular 21
gasoline and $4.32 per gallon for diesel. Fuel consumption is projected to be a total 22
of 73,593 gallons with 59,169 gallons of gasoline and 14,424 gallons of diesel fuel. 23
WILSON, DI 8
Veolia Water Idaho, Inc.
Increased fuel prices and a projected 5.5% increase in fuel usage based on historical 1
analysis accounts for an increase in net expense costs of $43,356 in the Test Year. 2
All other categories of costs are increasing by a combined net expense total of 3
$70,176 consisting predominantly of insurance and vehicle maintenance costs. 4
Adjustment No. 18, Advertising, is adjusted by $10,598 from a Historic 5
Test Year amount of $217,084 to a Test Year of $227,683. The adjustment includes 6
a reduction of $2,000 to remove one extra month of RedSky media costs from the 7
Historic Test Year due to timing of payments; a reduction of $8,000 to remove a 8
Donahoe Pace customer education media campaign cost doubled up in the Historic 9
Test Year due to timing of payments; a reduction of $2,687 for non-recurring Eagle 10
Water Company customer townhall costs; and a reduction of $6,715 to remove 11
printing costs of the Rules & Regulations insert from February 2022 which was 12
reprinted in June 2022 to reflect the May 1, 2022 rate change per SUZ-W-20-01 13
rate case. The adjustment includes an estimated cost of $30,000 to produce a 14
printed version of the annual Consumer Confidence Report to be mailed to each 15
customer based on the low customer digital readership for this important regulatory 16
required document. 17
Adjustment No. 21, IPUC Fees, increases Test Year IPUC Fees by $5,899 18
from the Historic Test Year expense of $97,278 to the Test Year level of $103,177. 19
The Test Year amount is based on the Commission’s 2022 utility assessment rate 20
of 0.1995% per invoice dated April 21, 2022 instructing Veolia to make a payment 21
of $101,940. This rate is applied to the Test Year projected revenues as of April 22
2023 at current rates of $51,717,859 and is subject to true up. 23
WILSON, DI 9
Veolia Water Idaho, Inc.
Q. Please explain Exhibit No. 10, Schedule 3, Adjustments No. 2, No. 3 and No. 4 1
- Payroll Taxes. 2
A. Exhibit No. 10, Schedule 3, Adjustments No. 2, No. 3 and No. 4 combine to 3
increase the Historic Test Year level of payroll taxes by $124,798. Adjustment No. 4
2 indicates an increase in FICA taxes of $124,963. Adjustment No. 3 reflects a 5
decrease of ($378) in Federal unemployment taxes. Adjustment No. 4 shows an 6
increase of $213 in Idaho State unemployment taxes. All payroll taxes have been 7
adjusted based on anticipated 2023 statutory limits and rates in effect for 2023. 8
Q. Does this conclude your direct testimony? 9
A. Yes. 10

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

EXHIBIT 10 TO ACCOMPANY THE

DIRECT TESTIMONY OF MICHAEL WILSON

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)
Line AdjustmentNo.Description Total 401K Amount
1 71,977$
401k Expense Ratio
384,454$ 9,249,359$ 4.16%
Test Year Gross Payroll less Incentives 10,981,000$
Ratio based on Historic Test Year 4.16%
To adjust 401k matching expense to Test Year based on Historic Test Year ratio expense amount of
payroll expense
Veolia Water Idaho, Inc.Details of Adjustments to Operations and Maintenance ExpenseHistoric Test Year ending June 30, 2022, as Adjusted
Adjustment No. 6
Account 91850Line AdjustmentNo.Description Amount Total Amount
1 To adjust other employee benefits (tuition expense) to Test Year level based on Historic Test Year ratio of employees 1,602$
2 Historic Test Year Expense - Other Employee Benefits Expense - Tuition 13,032$
3 Employees as of June 2022 122
4 Historic Test Year expense per employee 106.82$
5 Test Year Employees x 137
6 Test Year Expense - Tuition 14,634$
7 Adjustment 1,602$
Case No. VEO-W-22-02Exhibit No. 10Schedule 1M. WilsonPage 7
Veolia Water Idaho, Inc.Details of Adjustments to Operations and Maintenance ExpenseHistoric Test Year ending June 30, 2022, as Adjusted
Adjustment No. 7
Other Employee Benefits - Tuition
Line AdjustmentNo.Description Amount
1 (61,608)$
Details Amount Total
2 Shares Leased in Canals 96,210$
3 Contract Storage 49,834$
4 State Water Bank (Natural Flow)28,800$
5 Basin 63 Rental Pool 140,000$
6 Additional Rental Pool -$
7 Garden City Water Purchase 1,850$
8 New York Irrigation Canal -$
9 Test Year Purchased Water 316,694$
10 Historic Test Year Expense 378,302$
11 Adjustment (61,608)$
Account 50605

shares in canal company's contracts/leases for storage water and purchases from
Garden City. Historic Test year included two water bank rental fees due to timing
of payment.
Veolia Water Idaho, Inc.Details of Adjustments to Operations and Maintenance ExpenseHistoric Test Year ending June 30, 2022
Adjustment No. 9
Line AdjustmentNo.Description Amount
1 13,321$
Revenues Uncollectible %
Historic Test Year Revenues $ 49,459,567
4 Historic Test Year Expense excluding Bad Debt Reserve 90405 (683,545)$ 291,742$
Percentage Bad Debt Accounts Expense - per Historic Test Year 0.5899%
6 51,717,859$
7 Test Year Bad Debt Expense X 0.5899%=305,063$
8 Adjustment 13,321$
Case No. VEO-W-22-02
Normalize bad debt expense from Historic Test Year amount. Exclude allowance for uncollectible reserves (90405) from
uncollectible expenses reflected below. Collections activities stopped March 2020 due to Covid-19 pandemic. Collections resumed
as phase-in during 2021 and reached a normal threshold collection level in April 2021 for Commercial customers and May 2022 for
Residential customers.
Projected Total Test Year Revenues at Present Rates (Exhibit 5
Veolia Water Idaho, Inc.Details of Adjustments to Operations and Maintenance ExpenseHistoric Test Year ended June 30, 2022, as Adjusted
Adjustment No. 14
Line Adjustment
No.Description Amount
1 -$
2 Historic Test Year Expense before correction 278,045
3 31,223$
4 Exclude Hydrant Storz Quick Connection - capital expenditure reclassification (2,944)$
5 Adjusted Historic Test Year Expense 306,324
6 Test Year Materials Expense 306,324$
Adjustment -$
Case No. VEO-W-22-02
Exhibit No. 10
Schedule 1M. WilsonPage 15
item reclassification and adding in chemical maintenance costs included in chemical expense
reclassified to materials later
Veolia Water Idaho, Inc.Details of Adjustments to Operations and Maintenance ExpenseHistoric Test Year ending June 30, 2022, as Adjusted
Adjustment No. 15
Line Adjustment
No.Description Amount
1 467,768$
Details Amount Total
2 Mechanic payroll and benefits 99,362$
3 Lease Cost 736,412$
4 Fuel (73,593 gallons @ $4.78) average of Regular & Diesel fuel as of Sept. 1, 2022 351,490$
5 Materials, Maintenance (2021 cost plus 3% inflation estimate)216,070$
6 Insurance 211,509$
7 Other Costs, Depreciation, Tax, Vehicle allowance, etc.207,652$
8 1,822,496$
9 Less: Estimate of Proceeds from disposal or rebates based on 3 year average (10,500)$
10 Vehicle Allocation Gross 1,811,996$
11 56.587%
12 Total Test Year Expense 1,025,350$
13 Historic Test Year Expense 50645 & 50646 before adjustments 832,494$
14 Exclude Historic Test Year IBNR - Incurred But Not Reported claims reserves (329,806)$
15 Add Auto Insurance Claims payments - GL Account 26200 CE 682005 54,893$
557,581$
14 Adjusted Historic Test Year Vehicle Allocation Expense
Case No. VEO-W-22-02
Exhibit No. 10
Schedule 1
M. Wilson
Vehicle Allocation
Account 50645 & 50646
To adjust vehicle allocation expenses including all elements delineated below for fleet of Vehicles and
heavy equipment based on projected expense.
Test Year Expense
Test Year O&M Vehicle Allocation ratio based on June 2022 Historic Test
Line AdjustmentNo.Description Amount
1 10,598$
2 Historic Test Year Advertising Expense 217,084$
3 (2,000)$
4
Remove Donahoe Pace customer education Conservation 2021 costs - doubled up in Historic Test Year due to timing of campaigns (8,000)$
5 Remove Eagle Water Company customer town hall costs, non-recurring (2,687)$
6
Remove Drapers Associates Rules & Regulations insert from February
2022, was reprinted in June to reflect May 1 rate change per SUZ-W-20-01 (6,715)$
7 Add CCR Consumer Confidence Report mailer per projected cost.30,000$
8 Test Year Advertising Expense 227,683$
Adjustment 10,598$
Case No. VEO-W-22-02Exhibit No. 10Schedule 1
M. Wilson
Page 18
timing of various customer outreach campaigns. Add CCR Consumer Confidence Report printed version
Veolia Water Idaho, Inc.Details of Adjustments to Operations and Maintenance ExpenseHistoric Test Year ended June 30, 2022, as Adjusted
Adjustment No. 18
Line AdjustmentNo.Description Amount
1 5,899$
Details Amount Total
2 Projected Total Test Year Revenues at Present Rates (Exhibit 5 Schedule 2, cell K23)51,717,859$
3
4 Test Year IPUC Assessment 103,177$
5 Historic Test Year Expense 97,278$
6 Adjustment 5,899$
Case No. VEO-W-22-02
Exhibit No. 10
Schedule 1
M. Wilson
Page 21
Veolia Water Idaho, Inc.Details of Adjustments to Operations and Maintenance ExpenseHistoric Test Year ended June 30, 2022, as Adjusted
Adjustment No. 21
Line AdjustmentNo.Description Amount
1 To adjust Employer FICA Tax Liability - Federal Insurance Contributions Act 124,963$
Social Security MedicareDetailsAmountAmount Combined
2 Projected FICA Base for 2023 - based on change in prior year 151,200$ No Limit
3 FICA Rate for 2022 6.20%1.45%
4 Test Year Payroll 11,578,450$ 11,578,450$
5 Wages in Excess of FICA base 233,485$ No limit
6 Taxable Wages 11,344,965$ 11,578,450$
7 FICA Tax Rates 6.20%1.45%
8 Test Year FICA Tax 703,388$ 167,888$ 871,275$
9 Historical Test Year Expense 746,313$
10 Adjustment 124,963$
Case No. VEO-W-22-02Exhibit No. 10Schedule 3M. WilsonPage 2
At Present Rates, Projected Limit
Account 70250
Veolia Water Idaho, Inc.Details of Adjustments to Payroll TaxesHistoric Test Year ended June 30, 2022, as Adjusted
Adjustment No. 2
Payroll Taxes
Line AdjustmentNo.Description Amount
1 To adjust Federal Unemployment Insurance Tax (378)$
Details Amount
2 Federal Taxable Base limit 7,000$
3 Federal Tax Rate 0.60%
4 Employees covered by Federal Unemployment Tax
(137 Test Year Employees @ $7,000 limit)
5 Taxable Wages $959,000
6 Tax Rate 0.60%
7 Test Year Federal Unemployment Tax 5,754$
8 Historical Test Year Expense 6,132$
9 Adjustment (378)$
Case No. VEO-W-22-02Exhibit No. 10Schedule 3M. WilsonPage 3
Adjustment No. 3
Payroll Taxes
At Present Rates
Account 70250
Veolia Water Idaho, Inc.Details of Adjustments to Payroll TaxesHistorical Test Year ended June 30, 2022, as Adjusted
Line AdjustmentNo.Description Amount
1 To adjust State Unemployment Insurance Tax 213$
Details Amount
2 Projected 2023 Idaho Taxable Base - based on change in prior year 50,500$
3 2022 Idaho SUTA Tax Rate Class 2 Positive 0.346%
4 Employees covered by State Unemployment Tax
(137 Test Year Employees)
5 Taxable Base 50,500$
6 Test Year Taxable Wages 6,287,273$
7 Tax Rate 0.346%
8 Test Year Idaho Unemployment Tax 21,754$
9 Historical Test Year Expense 21,541$
10 Adjustment 213$
Case No. VEO-W-22-02Exhibit No. 10Schedule 3M. WilsonPage 4
At Present Rates, Projected Limit
Account 70250
Veolia Water Idaho, Inc.Details of Adjustments to Payroll TaxesHistorical Test Year ended June 30, 2022, as Adjusted
Adjustment No. 4
Payroll Taxes