20230208Jacob Direct wtih 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

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

DIRECT TESTIMONY OF ANUPA JACOB
FOR VEOLIA WATER IDAHO, INC.

FEBRUARY 2023

RECEIVED
Wednesday, February 8, 2023 2:57:10 PM
IDAHO PUBLIC
UTILITIES COMMISSION

Jacob, DI
Page 1 of 6
Veolia Water Idaho, Inc.

Q. Please state your name, position, responsibility and business address. 1
A. My name is Anupa Jacob. Since November 2022, I have been the VP/Controller & 2
Chief Accounting Officer at Veolia Water M&S (Paramus), Inc. (“M&S”) 3
(formerly SUEZ Water Management & Services Inc.) with the overall 4
responsibility of the company’s financial accounting records of the regulated 5
companies. I am authorized to testify on behalf of Veolia Water Idaho, Inc. 6
(“VWID” or “Company”) in this case. My business address is Veolia Water M&S 7
(Paramus), Inc., 461 From Road, Suite 400, Paramus, NJ 07652. 8
Q. Please summarize your educational background and professional experience. 9
A. I received a Bachelor Degree in Electronics and Communication Engineering from 10
Cochin University of Science and Technology, India and a Master of Business 11
Administration with a concentration in Accounting from Baruch College, City 12
University of New York. I am a Certified Public Accountant and have over fifteen 13
years of experience in accounting and auditing regulated utilities, publicly traded 14
companies, and private companies. Previous to my current role, I was the Director 15
of Utility Accounting for M&S, Manager of Technical Accounting and Derivatives 16
Accounting at National Grid, Plc., and held various roles within the Assurance 17
practice at PwC. I have not testified previously before this Commission on 18
accounting matters. 19
Q. What is the purpose of your testimony? 20
A. The purpose of my testimony is to discuss the following adjustments related to 21
Exhibit 10, Schedule 1 - Adjustments to Operating and Maintenance Expenses: 22
Adjustment No. 19 - Management & Service Fees 23

Jacob, DI
Page 2 of 6
Veolia Water Idaho, Inc.

Adjustment No. 23 - Amortization Expense - Deferred Rate Case 1
Adjustment No. 24 - Amortization Expense - Pension Expense 2
Adjustment No. 25 - Amortization Expense - Deferred Tank Painting 3
Adjustment No. 27 - Amortization Expense - Deferred Power 4
and Exhibit 10, Schedule 2: 5
Adjustment No. 2 - Amortization of Utility Plant Acquisition Adjustments 6
Q. Please explain how the shared services allocation methodology has changed as 7
a result of the merger with Veolia? 8
A. The shared services allocation methodology did not change as a result of the merger 9
with Veolia. The Company continues to use the same cost allocation methodology 10
reflected in the affiliate agreement between Veolia Water M&S (Paramus), Inc. 11
(formerly SUEZ Water Management & Services Inc.) and described in the Cost 12
Allocation Manual (“CAM”), which has been previously reviewed by Idaho Public 13
Utilities Commission Staff in prior rate case proceedings. 14
Q. Please explain the Company’s process of updating the allocation percentages 15
for shared services as a result of organizational changes that occur mid-year? 16
A. When significant organizational changes or other significant events occur during 17
the year that may affect the allocation of shared costs between affiliated entities, 18
the Company reviews the nature of the changes and determines the necessary 19
updates (if any) to the allocation factors in accordance with the CAM. 20
Q. Were there any changes to shared services as a result of the merger with Veolia 21
that affected the allocation percentages ? 22

Jacob, DI
Page 3 of 6
Veolia Water Idaho, Inc.

A. As a result of the merger with Veolia in the first quarter of 2022, there were 1
announcements made regarding the scope and responsibilities of certain employees 2
within the shared services. We reviewed these changes with each department, and 3
we recalculated the new allocation percentages using the three-factor formula 4
depending on the scope of responsibilities for each employee within a department. 5
Q. How were these changes reflected in the Company’s filing? 6
A. These changes are reflected in Exhibit 10, Schedule 1, Adjustment No. 19, 7
Management & Services Fees. An accounting adjustment was recorded in June 8
2022 which appropriately reflected the changes in scope and responsibilities as 9
mentioned above for the six months ended June 30, 2022. The normalized amount 10
included on line 6 annualizes the six months ended June 2022 thereby fully 11
reflecting the changes. The amount shown also is reduced for recorded shared asset 12
depreciation, which is addressed in the shared asset adjustment on line 9. 13
Q. Please explain the shared asset adjustment shown on Adjustment No. 19. 14
A. The M&S company makes capital expenditures, generally related to investments in 15
information technology hardware and software, as well as other assets to benefit 16
VWID and its affiliates. In the absence of the M&S company investments in these 17
assets, VWID would have needed to make these investments on a standalone basis 18
in order to support its operations and the delivery of reliable service to its 19
customers. 20
The adjustment reflects a calculation of the cost of shared assets whereby 21
the balance of the assets, less accumulated depreciation and deferred income taxes, 22
are calculated and the appropriate portion, based upon the three-factor formula, is 23

Jacob, DI
Page 4 of 6
Veolia Water Idaho, Inc.

projected as of March 31, 2023 reflecting the costs in effect in the period when the 1
rates are to be effective in this case. 2
Q. Please describe the various normalizing and annualizing adjustments, as well 3
as known and measurable adjustments, made to operating expense in Exhibit 4
10, Schedule 1. 5
A. Adjustment No. 23, Amortization Expense - Deferred Rate Case, increases 6
historical test year expense by $173,055 for deferred rate case expense 7
amortization. The Company seeks recovery of the current rate case costs, estimated 8
to be $360,980, as well as the remaining balance of the deferred rate case expense 9
in the amount of $62,225, approved in Case No. SUZ-W-20-02, with an annual 10
amortization of $29,868. As a result of the Commission’s Order No. 35265, which 11
approved intervenor funding of $29,640 related to the acquisition of Eagle Water 12
(SUZ-W-18-02), the Company is also seeking to recover those costs in this case. 13
Finally, as further described in the testimony of Matthew Kahn in this case, the 14
Company proposes to refund the deferred Idaho State tax credit and federal 15
employee retention credit of $47,000 through a reduction to rate case expenses in 16
order to return those amounts expeditiously to customers. The Company seeks a 17
two-year recovery of the net amount of this expense. 18
Adjustment No. 24, Amortization Expense - Pension Expense, decreases 19
historical test year expense of $477,384 by $454,166 for the amortization of 20
Deferred Pension. In Case No. SUZ-W-20-2, Order No. 35030, the Commission 21
approved a pension plan contribution amount of $1,312,595 as the benchmark from 22
which future cash contributions would be compared. Payments over or under the 23

Jacob, DI
Page 5 of 6
Veolia Water Idaho, Inc.

$1,312,595 benchmark were authorized to be deferred for future consideration. 1
Actual cash contributions were $1,348,611 in 2021, $292,898 for the first six 2
months of 2022 and are estimated to be $439,347 from July 2022 through March 3
2023. Therefore, the Company estimates a deferral of $948,113 to be refunded to 4
the customers offset by the remaining balance of deferred pension expenses to be 5
amortized as of March 31, 2023 related to Case No. SUZ-W-20-2 of $994,550, 6
which nets to $46,437. The Company seeks to amortize the net amount of $46,437 7
over a two-year period. Please see testimony of Company Witness Cary for an 8
explanation of Adjustment No. 3 Employee Pension Cash Contribution Costs. 9
Adjustment No. 25, Amortization Expense - Deferred Tanking Painting, 10
increases historical test year tank painting expense of $145,217 by $32,066. Since 11
its 2020 rate case, the Company has painted the Broken Horn Tank for $65,239, 12
Columbia Tank for $126,088, and Hidden Hollow interior for $450,000. The 13
Company is requesting a twenty-year amortization period for these costs, consistent 14
with recent commission orders and stipulation agreements. Amortization expense 15
has been adjusted to reflect the addition of the new amortization amounts. 16
Adjustment No. 27, Amortization Expense - Deferred Power, increases 17
historical test year expense of $197,484 by $337,294 for deferred power 18
amortization. The Company seeks recovery of the deferred Power Cost Adjustment 19
(annual adjustment mechanism), approved in Case UWI-W-01-02, for cost 20
incurred since the last rate case through June 2022 of $295,583 including 21
accumulated interest, the estimated deferred power costs and interest from July 22
2022 through March 2023 of $362,548 as well as the remaining balance of deferred 23

Jacob, DI
Page 6 of 6
Veolia Water Idaho, Inc.

power expenses to be amortized as of March 31, 2023 related to Case no. SUZ-W-1
20-2 of $411,425 for a total test year deferred balance of $1,069,555 to be amortized 2
over two years. Please see testimony of Company Witness Cary for an explanation 3
of Adjustment No. 10 Energy - Purchased Power and Other Utilities. 4
Q. Please describe the various normalizing and annualizing adjustments, as well 5
as known and measurable adjustments, made to amortization expense in 6
Exhibit 10, Schedule 2 7
A. Adjustment No. 2 Amortization of Utility Plant Acquisition Adjustment (UPAA) 8
increases historical test year expense of $20,712 by $261,873 for amortization of 9
UPAA. Commission Order No. 35247 approved the amortization of $10,475,000 10
of UPAA related to the acquisition of Eagle Water (SUZ-W-18-02) over 40 years, 11
which results in an additional annual amortization of $261,873. 12
Q. Does this conclude your direct testimony? 13
A. Yes, it does. 14

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 7, 8, AND 10 TO ACCOMPANY THE
DIRECT TESTIMONY OF ANUPA JACOB

Line No.Assets
Utility Plant
1 Water Plant in Service $ 553,641,392
2 Retirement Work in Progress
3 Plant Held for Future Use - 4 Construction Work in Progress 17,074,597 5 Utility Plant Acquisition Adjustment 10,808,444 6 Amortization (192,310,931)7 Net Utility Plant 389,213,502
Investments8Other Investments 7,554 9 Total Investments 7,554
Current Assets
10 Cash -
11 Accts/Notes Receivable - Customers 1,873,483
12 Other Receivables -
13 Provision for Uncollectable Accounts (259,677)
14 Accounts Receivable (Associated Companies) (821,511)
15 Material & Supplies Inventory 797,006
16 Prepaid Expenses 58,070
17 Accrued Utility Revenue 7,161,404
18 Total Current Assets 8,808,776
Deferred Debits19Deferred Rate Case Expense 94,733 20 Other Deferred Charges 17,486,979 21 Total Deferred Debits 17,581,713
22 Total Assets $ 415,611,544
Capitalization and Liabilities
Capital
23 Common Stock Issued $ 1,261,750
24 Additional Paid-in Capital 120,052,436
25 Retained Earnings 149,233,022
26 Accumulated Other Comprehensive Income 1
27 Total Equity Capital 270,547,209
Liabilities28Accounts Payable 5,965,059 29 Accounts Payable (Associated Companies) - 30 Notes Payable - 31 Customer Deposits 191 32 Accrued Other Taxes Payable 511,780
33 Accrued Income Taxes Payable 3,248,338
34 Misc Current & Accrued Liabilities 3,808,772
35 Advances for Construction 3,841,414
36 Other Deferred Liabilities 23,798
37 Regulatory Liabilites 4,450,131
38 Operating Reserves (Pension & Benefits) 4,894,014
39 Contributions in Aid of Construction 161,333,856
40 Accumulated Amortization of CIAC (48,505,888)
41 Accumulated Deferred Income Tax 5,492,870 42 Total Liabilities 145,064,335
43 Total Liabilities & Capital $ 415,611,544
Case No. VEO-W-22-02
Exhibit No. 7
Page 1 of 1
Veolia Water Idaho, Inc.Balance Sheet Per BooksJune 30, 2022Case No. VEO-W-22-02
A. Jacob
Line No.
1 Operating Revenues $49,459,567
Operating Expenses
2 Operation and Maintenance Expense 18,284,059
3 Depreciation Expense 9,696,461
4 Amortization, Utility Plant Acquisition Adjustment 20,712
5 Taxes Other Than Income Taxes 2,543,511
6 Income Taxes 2,988,115
7 Total Operating Expenses 33,532,858
8 Net Operating Revenues 15,926,709
9 Gains (Losses) from Disposition of Utility Plant 1
10 Utility Operating Income $15,926,710
Case No. VEO-W-22-02
Exhibit No. 8
Page 1 of 1
Veolia Water Idaho, Inc.
Statement of Income
For the Twelve Months Ended June 30, 2022
Case No. VEO-W-22-02
A. Jacob
VEOLIA WATER IDAHO, INC.
Details of Adjustments to Operating and Maintenance Expenses At Present Rates
SUMMARY - Exhibit 10, Schedule 1
Historic Test Year ended June 30, 2022, as Adjusted
(1)(2)(3)(4)(5)
Witness Line No.Description
Schedule
Adjustment
No.Account Reference
Historic Test Year
Ended
06/30/2022
Normalizing
Adjustments
Adjusted Historic
Test Year Ended
06/30/2022 Adjustments
Test Year Ending
03/31/2023
EXHIBIT 10, Schedule 1
J.Cary 1 Payroll 1 50100 to 50125 6,672,277$ 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/
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)
Jacob
Account 90850
Line Adjustment
No.Description Amount
1 499,821$
Year M&S Fees Amount Total
2 2019 3,814,660$
3 2020 3,538,627$
4 2021 4,016,367$
5 six months ending June 30, 2022 2,062,183$
6 2022 3,392,981$
7 Salary increase factor 3.50%118,754$
8 Expected 2023 change in insurance premiums (Auto/General/Umbrella Liability and Workers Compensation)29,873$
9 Adjustment for shared assets (includes depreciaton expense)1,025,027$
10 Pro Forma M&S Fees 4,566,635$
11 Historic Test Year Expense 4,066,814$
12 Adjustment 499,821$
Case No. VEO-W-22-02
Exhibit No. 10
Schedule 1
Page 19
To normalize Management & Services fees based on actual 6 months ended June 2022, then annualized. Include salary increase
factor, expected 2023 change in insurance premiums and shared assets adjustment
Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended June 30, 2022, as Adjusted
Adjustment No. 19
Management & Services Fees
Per Books for reference only
Normalize 2022 actuals through June 30, 2022 removing
depreciation expense of $365,692 captured below in shared assets, then annualize
A. Jacob
LineNo.Description Adjustment Amount
1
expense balance as of March 2023 173,055$
2 related to Case no. SUZ-W-20-2 as of March 31, 2023 62,225$
3 Estimated rate case expense:
4 Legal 80,000$
5 Rate of Return 30,000$
6 Cost of Service Study 82,480$
7 Customer Class Load Study 79,500$
8 Intervenors 40,000$
9 Mailing Notifications/Postcards to customers 40,000$
10 Miscellaneous & Other Cost 9,000$
11 Total estimated rate case expense 360,980$
12 Total rate case expenses to be amortized 423,205$
13 Approved Intervenor Funding (Order No. 35265 related to Eagle Water acquisition)29,640$ [1]
14 Deferred Idaho State Tax Credit & Federal Employee Retention Credit (47,000)$ [2]
15 Adjusted rate case expenses to be amortized 405,845$
16 Test Year annual deferred rate case amortization expense 202,923$
17 Historic Test year expense 51,960$
18 Less: Intervenor funding expense 22,092$
19

SUZ-W-20-02)29,868$
18 Adjustment 173,055$
[1]Refer to the Testimony of M. Zerhouni
[2]Refer to the Testimony of M. Kahn
Case No. VEO-W-22-02Exhibit No. 10
Schedule 1
Page 23
Veolia Water Idaho, Inc.Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended June 30, 2022, as Adjusted
Adjustment No. 23
Amortization Expense - Deferred Rate Case
Account 18680 and 92000
A. Jacob
Line Adjustment
No.Description Amount
1 Adjustment of amortization of pension costs - based on projected deferred pension balance as of March 2023 (454,166)$
Deferral
Balance
2 994,550$
3 Deferred pension as of June 30, 2022 (398,824)$
4 Projected additional deferral through March 31, 2023 (549,289)$
5 Total 46,437$
8 Test Year annual deferred pension expense & interest amortization 23,218$
10 Historic Test Year Expense 477,384$
11 Adjustment (454,166)$
Case No. VEO-W-22-02
Exhibit No. 10
Schedule 1
Page 24
Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended June 30, 2022, as Adjusted
Adjustment No. 24
Amortization Expense - Pension Expense
Account 18609 and 26310
Remainder of amount approved for deferred pension expense amortization per Order no. 35030 related to Case
no. SUZ-W-20-2 as of March 31, 2023
A. Jacob
Line Adjustment
No.Description Amount
32,066$
Details Year Painted Amortization Allowed Cost Amortization Period

Amortization Total
1 Ongoing From Prior Cases
2 Aeronica Tank Dec-00 UWI-W-04-04 21,100$ 20 Years 1,055$
3 Gowen Tank Exterior Apr-01 UWI-W-04-04 39,808$ 20 Years 1,990$
4 Federal Reservoir Jul-06 UWI-W-06-02 162,895$ 20 Years 8,145$
5 Crestline Tank Dec-09 UWI-W-09-01 65,628$ 20 Years 3,281$
6 Steelhead Tank Dec-09 UWI-W-09-01 313,493$ 20 Years 15,675$
7 Ustick Reservoir Dec-09 UWI-W-09-01 74,183$ 20 Years 3,709$
8 Hillcrest Resevoir Apr-10 UWI-W-11-02 230,134$ 20 Years 11,507$
9 Gowen Tank Interior Aug-14 UWI-W-15-01 208,050$ 20 Years 10,402$
10 Barber Tank interior Oct-18 SUZ-W-20-02 338,037$ 20 Years 16,902$
11 Hulls Gulch Interior Jun-20 SUZ-W-20-02 1,135,161$ 20 Years 56,768$
12 Hulls Gulch exterior Aug-20 SUZ-W-20-02 213,330$ 20 Years 10,667$
13 Hidden Hollow exterior Aug-20 SUZ-W-20-02 102,317$ 20 Years 5,116$
145,217$
New Amortization Request
14 Broken Horn Tank Paint Dec-21 65,239$ 3,262$
15 Columbia Tank Paint Dec-21 126,088$ 6,304$
16 Hidden Hollow interior Mar-23 450,000$ 22,500$
32,066$
17 177,283$
18 Historic Test Year Expense - Amortization of deferred tank painting expenses (Case No. SUZ-W-20-02)145,217$
19 Adjustment 32,066$
Case No. VEO-W-22-02
Exhibit No. 10
Schedule 1
Page 25
Amortization Expense - Tank Painting
Account 18620 and 92053
Test Year annual tank painting amortization expense
Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending June 30, 2022, as Adjusted
Adjustment No. 25
A. Jacob
Line
No.Description Adjustment Amount
1 Adjustment of amortization of Excess Deferred Income Taxes (EDIT)2,007,184$
2 Historic Test year amortization of EDIT-Protected (227,004)$
3 Historic Test year amortization of EDIT-Unprotected (1,336,430)$
4 Historic Test year amortization of EDIT-Stub period (643,750)$
5 Total Historic Test Year amortization of EDIT (2,207,184)$
6 Less: Amortization of EDIT - Unprotected which ended April, 2022 $ 1,336,430
7 Less: Amortization of EDIT - Stub period which ended April, 2022 $ 643,750
8 To reflect appropriate ARAM amortization 27,004$
9 Test Year annual EDIT Amortization Expense $ (200,000)
10 Adjustment $ 2,007,184
Case No. VEO-W-22-02
Exhibit No. 10
Schedule 1
Page 26
Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending June 30, 2022, as Adjusted
Account 92059
Adjustment No.26
Amortization of Excess Deferred Income Taxes
A. Jacob
Line Adjustment
No.Description Amount
1 Adjustment of amortization of deferred power costs - based on projected deferred power balance as of March 2023 337,294$
Deferral
Balance
2 411,425
3 Deferred power as of June 30, 2022 295,583$
4 Projected additional deferral through March 31, 2023 358,507$
5 Projected additional interest through March 31, 2023 4,041$
6 Total 1,069,555$
7 534,778$
8 Historic Test Year Expense - Amortization of deferred power expenses (Case No. SUZ-W-20-02)197,484$
9 Adjustment 337,294$
Case No. VEO-W-22-02
Exhibit No. 10
Schedule 1
Page 27
Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended June 30, 2022, as Adjusted
Adjustment No. 27
Amortization Expense - Deferred Power
Account 18625 and 92061
Remainder of amount approved for deferred power expense
amortization per Order no. 35030 related to Case no. SUZ-W-20-2 as f M h 31 2023
Test Year annual deferred power amortization expense
A. Jacob
Account 18623 and 18653, 92064 Amort
Line Adjustment
No.Description Amount
1 (8,501)$
2 Test Year annual amortization expense per Exhibit 11, Schedule 9 page 1 deferred debits 30,523$
3 Historic Test year expense - Amortization of deferred AFUDC equity gross up (Case No. SUZ-W-20-02)39,024$
4 Adjustment (8,501)$
Case No. VEO-W-22-02
Exhibit No. 10
Schedule 1
Page 28
Adjustment of Amortization of AFUDC Equity Gross Up Expense - based on projected March 2023 Deferred AFUDC Equity Gross Up balance
Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended June 30, 2022, as Adjusted
Adjustment No. 28
AFUDC Equity Gross Up Amortization
A. Jacob
Line Acquistion Description Company IPUC Amortization Utility Plant Accumulated Unamortized Annual Adjustment Amount
1 Adjustment of amortization of UPAA - based on projected UPAA balance as of March 2023 261,873$
Ongoing From Prior Cases
2 Raintree X00014 Sep-00 40 Years (227,594) 124,262 (103,332) (5,690) 3 South County Water X00020 Jan-99 40 Years 1,009,011 (592,815) 416,196 25,225 4 Barber Water X00027 Jan-99 40 Years 46,966 (26,386) 20,580 1,174 828,384$ (494,939)$ 333,444$ 20,710$
Commission Order No. 35247
5 Eagle Water ACQ_EAGLE 40 Years 10,475,000 -10,475,000 261,875
6 Test Year annual UPAA amortization expense 282,585$
7 Historic Test Year Expense - Amortization of UPAA (Case No. SUZ-W-20-02)20,712$
8 Adjustment 261,873$
Case No. VEO-W-22-02Exhibit No. 10Schedule 2
Page 1 of 1
Veolia Water Idaho, Inc.Details of Adjustments to Operations and Maintenance ExpenseHistoric Test Year ended June 30, 2022, as Adjusted
Adjustment No. 2Amortization of Utility Plant Acquisition Adjustment (UPAA)Account 11400 and 11500
A. Jacob