20241122Direct Lino Bucci_Exhibits.pdf

RECEIVED
Friday, November 22, 2024
IDAHO PUBLIC
UTILITIES COMMISSION
Preston N. Carter, ISB No. 8462
Morgan D. Goodin, ISB No. 11184
Megann E. Meier, ISB No. 11948
GIVENS PURSLEY LLP
601 West Bannock Street
P.O. Box 2720
Boise, Idaho 83701-2720
Office: [phone]
Fax: [phone]
[e-mail]
[e-mail]
[e-mail]
18557790.1 [30.264]
Attorneys for Veolia Water Idaho, Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION Case No. VEO-W-24-01
OF VEOLIA WATER IDAHO, INC. FOR A
GENERAL RATE CASE
DIRECT TESTIMONY OF LINO BUCCI
FOR VEOLIA WATER IDAHO,INC.
NOVEMBER 22,2024

I INTRODUCTION
2 Q. Please state your name and business address.
3 A. My name is Lino Bucci, and my business address is 461 From Road, Paramus,New Jersey
4 07652.
5 Q. By whom are you employed and in what capacity?
6 A. I am employed by Veolia Water Management and Services (Paramus), Inc. ("VWM&S")
7 as a Senior Regulatory Specialist. In this role, I am responsible for preparing, compiling,
8 analyzing, and presenting data to support rate case proceedings and compliance filings.
9 Q. Please summarize your educational background and professional experience.
10 A. I graduated from Ramapo College of New Jersey ("RCNJ"), Mahwah,New Jersey in 2017
11 with a Bachelor of Science Business Administration degree with a concentration in
12 Finance.
13 Q. Please describe your work experience.
14 A. After graduating from RCNJ, I joined VWM&S in 2018 as an Associate Rate Analyst. 1
15 was promoted to Rate Analyst in March 2020, then to Regulatory Specialist in July 2021,
16 and finally promoted to my current role of Senior Regulatory Specialist in July 2024.
17 Q. What regulatory agencies have you previously appeared before and presented
18 testimony?
19 A. I have provided testimony in rate case proceedings before the New Jersey Board of Public
20 Utilities and the New York Public Service Commission.
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VEOLIA WATER IDAHO,INC.

I Q. What is the purpose and nature of your testimony?
2 A. The purpose of my testimony is to support the calculations of certain Operation and
3 Maintenance ("O&M") expenses. I developed the Test Year("TY") expenses, for the
4 twelve month period ending December 31, 2024, by reflecting known and measurable
5 changes on an annualized basis to the Historic Test Year("HTY") expenses,based on the
6 twelve month period ended August 31, 2024. In addition I made normalization calculations
7 and adjustments to develop costs that reflect the continuing operations of the Company.
8 Q. What Exhibits and Schedules are you presenting in support of the filing?
9 A. I am supporting the adjustments to O&M as summarized in Exhibit 10 Schedule 1. Please
10 see below for a list of the specific adjustments I am supporting.
11 Exhibit 10, Schedule 1 —O&M Expense Adjustments:
12 Adjustment No. 3 —Pension Cash Contributions
13 Adjustment No. 4—Post-retirement Benefits Other Than Pension(PBOP)
14 Adjustment No. 5 —Employee Healthcare
15 Adjustment No. 6—Employee 401k
16 Adjustment No. 7—Other Employee Benefits—Tuition& Other Awards
17 Adjustment No. 9—Purchased Water
18 Adjustment No. 13 —Customer Billing Expenses
19 Adjustment No. 14—Bad Debt
20 Adjustment No. 15 —Materials
21 Adjustment No. 18—Advertising
22 Adjustment No. 20—General Insurance
23 Adjustment No. 21 —IPUC Fees
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VEOLIA WATER IDAHO,INC.

I Company Witnesses Wilson and Jacob will discuss additional operating and maintenance
2 expense adjustments in their Testimony and Exhibits.
3 Q. Please describe the approach you have taken in preparing the exhibits for operating
4 and maintenance expenses.
5 A. I have relied on information and data produced within the Company, and my own
6 investigation thereof, as the basis for adjustments in order to appropriately reflect the costs
7 expected to be incurred during the period rates will be in effect as a result of this filing.
8 Q. Please describe the various normalizing and annualizing adjustments, as well as
9 known and measurable adjustments, made to operation and maintenance expenses as
10 demonstrated in Exhibit 10, Schedule 1.
11 A. Adjustment No. 3 Pension Cash Contributions, decreases pension expense by$193,268
12 from the HTY pension expense (service cost and interest component) of$873,877. The
13 Company is required to apply FAS 87 in determining book expense. In Order No. 29838,
14 UWI-W-04-04, the Commission found that it was not appropriate, for the purposes of
15 determining rate recovery, to use the FAS 87 pension expense accrual. The Commission
16 determined that, for rate making purposes, cash contributed to the pension plan is the
17 appropriate level to be recovered in rates. Pension cash contributions from plan year 2021
18 through 2023 averaged $744,421, however the Company's pension cash contributions are
19 expected to decrease to $680,609 based on the year to date September 2024 amounts with
20 a projection of the same level of contributions for the remainder of the year. In Case No.
21 VEO-W-22-02, the Commission approved a pension plan contribution amount of
22 $585,796. The Company is proposing to increase the deferral threshold of pension
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VEOLIA WATER IDAHO,INC.

I contributions to $680,609 to reflect the current level of cash contributions. The Company
2 is anticipating a similar level of pension cash contributions in the calendar year 2024.
3 Adjustment No. 4 Post-retirement Benefits Other Than Pension (PBOP decreases
4 the PBOP expense by $38,286. The HTY amount is ($448,642) consisting of$76,546
5 service costs and($525,188) interest component. The TY level of expense represents the
6 FAS 106 expense of($486,928) as contained in the Towers Watson actuarial valuation for
7 2024, with a service cost of$76,589 and interest component of($563,517).
8 Adjustment No. 5 Employee Healthcare, increases the cost of providing medical,
9 dental, and vision coverage to employees who choose to be covered by Veolia Water Idaho
10 benefits,by $395,374. The gross HTY expense of$2,220,131 is adjusted to exclude
11 $525,529 of employee offsetting contributions, for a net HTY expense of$1,694,602. The
12 net HTY expense is normalized to exclude $127,885 of IBNR(incurred but not reported)
13 claims reserve for an adjusted net HTY expense of$1,566,717. The TY amount of
14 $1,882,803 is based on HTY employee elections, rates in effect for 2024, adjusted to the
15 TY employee count of 136. Group term life insurance, long term disability and other
16 benefit costs were not adjusted and are projected at HTY amounts, for a total of$79,287.
17 The total TY Company expense is $1,962,090.
18 Adjustment No. 6 Employee 401k, increases the HTY employee 401k expense by
19 $25,032 from the HTY amount of$511,836. The TY amount is based on the HTY ratio of
20 expense to gross payroll expense eligible for 401k(regular wages plus rest time pay, less
21 incentives, overtime, shift pay, etc.), which equates to the rate of 4.73%. This rate is
22 applied to the TY level of gross payroll expense eligible for 401k of$11,352,972 as shown
23 on Adjustment No. 1, supported by Company witness Wilson. This equates to a TY
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L.BUCCI,DI
VEOLIA WATER IDAHO,INC.

I amount of$536,868. The employee 401k expense has increased each year since 2015. The
2 HTY is not a calendar year end, therefore the Company believes an adjustment is
3 reasonable and warranted to reflect a full TY of costs, or current level of costs as of the
4 end of the TY.
5 Adjustment No. 7 Other Employee Benefits—Tuition& Other Awards, decreases
6 the TY expense by $56 for tuition assistance and $85,188 for other awards, for a total
7 decrease of$85,244 to Other Employee Benefits. The HTY expense for tuition is $7,691
8 for 137 employees. The TY amount is based on the HTY ratio of expense to employee,
9 applied to the TY employees of 136, which equates to $7,635. The HTY expense for other
10 awards is $135,188, which was adjusted to a reduced award level TY expense of$50,000,
11 for a total TY cost of$57,634.
12 Adjustment No. 9 Purchased Water, reflects the same TY expense as the HTY
13 expense, therefore no proposed adjustment. The HTY expense is $433,064. The Company
14 believes the HTY purchased water expense will remain consistent with the TY. However,
15 the Company believes an adjustment to the current level of costs as of the end of the TY is
16 warranted when that data becomes available. Company witness Cooper provides an
17 explanation of the Company's purchased water program in her Testimony.
18 Adjustment No. 13 Customer Billing Expenses, increases customer billing related
19 services by$17,175 from the HTY expense of$323,460. The TY amount is based on the
20 HTY level of bill generation and postage costs and eBilling (electronic billing) services. It
21 also includes a 0.1% customer growth adjustment from the HTY of$409, a 7.8%postage
22 rate increase for metered mail effective July 14, 2024, which equates to an increase of
23 $14,086, as well as a CSG(bill generation vendor)processing and other cost increases
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VEOLIA WATER IDAHO,INC.

I effective October 2024, for a CSG bill generation cost increase of$2,680. The TY
2 Company expense is $340,635.
3 Adjustment No. 14 Bad Debt, decreases bad debt expense by $18,215 from the
4 adjusted HTY level of$350,571. The HTY expense of$352,668 is normalized to exclude
5 the allowance for uncollectible reserves,booked to account 90405, which nets a reduction
6 of$2,097 from the uncollectible expense calculation. The TY amount is based on the HTY
7 bad debt expense to revenue ratio of 0.5910%, applied to the TY revenue at current rates of
8 $56,235,286. The TY Company expense is $332,356.
9 Adjustment No. 15 Materials, reflects the same TY expense as the HTY expense,
10 therefore no proposed adjustment. The HTY expense is $276,106. The Company believes
11 the HTY material expense will remain consistent with the TY. However, the Company
12 believes an adjustment to the current level of costs as of the end of the TY is warranted
13 when that data becomes available.
14 Adjustment No. 18 Advertising_, increases the advertising expense by $19,286,
15 from the HTY amount of$116,722. The adjustment includes a reduction of$4,000 to
16 remove a Donahoe Pace customer education conservation campaign that appeared twice in
17 the HTY due to timing of payments, and a reduction of$1,443 to remove accruals and
18 reclasses. The adjustment also includes an addition of$9,379 related to a Drapers
19 Associates Rules &Regulations bill inserts invoice, as required by the Idaho Public Utility
20 Commission(IPUC), for service during the HTY but was booked outside the HTY in
21 September 2024, as well as an estimated cost of$15,350 to produce postcards of the Lead
22 and Copper Rules Revisions to be mailed to each customer as required by Environmental
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VEOLIA WATER IDAHO,INC.

I Protection Agency(EPA) federal requirements. The TY Company expense is $136,008,
2 and is subject to true up.
3 Adjustment No. 20 General Insurance, increases the expenses for general business
4 insurance, including liability and property coverage,by$154,558, from the adjusted HTY
5 amount of$99,518. Both the HTY and the TY were normalized to exclude IBNR reserves,
6 and to include claims payments, captured in liability GL account 26200. The TY amount
7 of$254,076 is based on an average of the three prior years (calendar years 2021, 2022, and
8 2023) adjusted costs.
9 Adjustment No. 21 IPUC Fees, increases the TY IPUC Fees by $8,017 from the
10 HTY expense of$111,595. The TY amount of$119,612, is based on the Commission's
11 2024 utility assessment rate of 0.2127%per invoice dated April 16, 2024 instructing
12 Veolia Water Idaho to make a payment of$119,375. This rate is applied to the TY revenue
13 at current rates of$56,235,286 and is subject to true up.
14 Q. Does this conclude your direct testimony?
15 A. Yes.
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L.Bum,DI
VEOLIA WATER IDAHO,INC.

Preston N. Carter, ISB No. 8462
Morgan D. Goodin, ISB No. 11184
Megann E. Meier, ISB No. 11948
GIVENS PURSLEY LLP
601 West Bannock Street
P.O. Box 2720
Boise, Idaho 83701-2720
Office: [phone]
Fax: [phone]
[e-mail]
[e-mail]
[e-mail]
18557695.1 [30-264]
Attorneys for Veolia Water Idaho, Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION Case No. VEO-W-24-01
OF VEOLIA WATER IDAHO, INC. FOR A
GENERAL RATE CASE
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT TO ACCOMPANY THE
DIRECT TESTIMONY OF LINO BUCCI

VEOLIA WATER IDAHO, INC.
Details of Adjustments to Operating and Maintenance Expenses At Present Rates
SUMMARY- Exhibit 10, Schedule 1
Historic Test Year ended August 31, 2024, as Adjusted
(1) (2) (3) (4) (5)
Schedule Historic Test Year Adjusted Historic Test Year
Line Adjustment Account Ended Normalizing Test Year Ended Ending
Witness No. Description No. Reference 08/31/2024 Per Books Adjustments 08/31/2024 Adjustments 12/31/2024
EXHIBIT 10, Schedule 1
M. Wilson 1 Payroll 1 50100 to 50125 $ 7,806,288 $ 7,806,288 $ 135,265 $ 7,941,553
M. Wilson 2 Workers Compensation (excludes reserves, adds claims 2 91460 $ 68,115 1/ $ 17,684 $ 85,799 $ 32,028 $ 117,827
L. Bucci 3 Pension Cash Contributions 3 91500, 71257 & $ 873,877 $ 873,877 $ (193,268) $ 680,609
L. Bucci 4 Post-retirement Benefits Other than Pension (PBOP) 4 91550 &71258 $ (448,642) $ (448,642) $ (38,286) $ (486,928)
L. Bucci 5 Employee Healthcare (excludes reserves) 5 91700 $ 1,694,602 2/ $ (127,885) $ 1,566,717 $ 395,374 $ 1,962,090
L. Bucci 6 Employee 401k 6 91800 $ 511,836 $ 511,836 $ 25,033 $ 536,868
L. Bucci 7 Other Employee Benefits -Tuition &Other Awards 7 91850 &91860 $ 142,878 $ 142,878 $ (85,244) $ 57,634
M. Wilson 8 Payroll Overheads (Fringe Benefit Allocation) 8 90950 &90953 $ (1,307,201) $ (1,307,201) $ (132,253) $ (1,439,454)
L. Bucci 9 Purchased Water 9 50605 $ 433,064 $ 433,064 $ - $ 433,064
M. Wilson 10 Energy- Purchased Power and Other Utilities 10 50610 &50620 $ 2,869,189 $ 2,869,189 $ 317,512 $ 3,186,702
M. Wilson 11 Chemicals (reclass of prior year correction) 11 50635 $ 758,808 3/ $ 9,511 $ 768,319 $ (27,601) $ 740,718
M. Wilson 12 Subcontractors 12 50400 $ 1,066,558 $ 1,066,558 $ 46,117 $ 1,112,675
L. Bucci 13 Customer Billing Expenses 13 50405 $ 323,460 $ 323,460 $ 17,175 $ 340,635
L. Bucci 14 Bad Debts (reserves booked in separate 90405 account) 14 90400 &90405 $ 352,668 4/ (2,097) $ 350,571 $ (18,215) $ 332,356
L. Bucci 15 Materials (reclassification amount in Adjusted Test Year 15 50300 $ 276,106 5/ $ 276,106 $ (0) $ 276,106
M. Wilson 16 Vehicle Allocation (excludes reserves, adds claims 16 50645 &50646 $ 754,934 6/ $ 334,483 $ 1,089,417 $ (174,871) $ 914,546
M. Wilson 17 Office Expenses 17 50650 $ 726,981 $ 726,981 $ 42,551 $ 769,532
L. Bucci 18 Advertising Expense 18 50651 $ 116,722 $ 116,722 $ 19,286 $ 136,008
A. Jacob 19 Management&Service Fees 19 90850 $ 4,554,245 $ 4,554,245 $ 251,013 $ 4,805,258
L. Bucci 20 General Insurance (excludes reserves, adds claims 20 91400 &91450 $ (28,071) 7/ $ 127,589 $ 99,518 $ 154,558 $ 254,076
L. Bucci 21 IPUC Fees 21 91900 $ 111,595 $ 111,595 $ 8,017 $ 119,612
M. Wilson 22 Safety 22 92200 $ 212,503 $ 212,503 $ (0) $ 212,503
A. Jacob 23 Amortization Expense- Deferred Rate Case 23 92000 $ 55,308 8/ $ 55,308 $ 36,753 $ 92,061
A. Jacob 24 Amortization Expense- Deferred Pension 24 92056 $ 23,220 $ 23,220 $ (98,264) $ (75,044)
A. Jacob 25 Amortization Expense- Deferred Tank Painting 25 92053 $ 154,781 $ 154,781 $ 179,306 $ 334,086
A. Jacob 26 Amortization of Excess Deferred Income Taxes 26 92059 $ (200,004) $ (200,004) $ - $ (200,004)
A. Jacob 27 Amortization Expense- Deferred Power 27 92061 $ 264,072 $ 264,072 $ 142,212 $ 406,284
J. Cagle 28 AFUDC Equity Gross Up Amortization 28 92064 $ 46,036 $ 46,036 $ (46,036) $ -
M. Wilson 29 Adjustment to Variable Expenses Due to Volume 29 $ - $ - $ (290,315) $ (290,315)
30 Total Adjusted Operating & Maintenance Expenses $ 22,213,928 $ 359,284 $ 22,573,213 $ 697,848 $ 23,271,060
M. Wilson 31 Total Unadjusted Operating & Maintenance Expenses $ 265,210 $ - $ - $ - $ 265,210
32 Total Operating and Maintenance Adjustments $ 22,479,138 $ 359,284 $ 22,573,213 $ 697,848 $ 23,536,270
EXHIBIT 10, Schedule 2
K. Arp 33 Adjustment to Depreciation Expense 1 70100 &70101 $ 11,273,623 988,168 $ 12,261,791
A. Jacob 34 Amortization of Utility Plant Acquisition Adjustments 2 71255 282,588 (0) $ 282,588
35 Total Depreciation and Amortization $ 11,556,211 $ - $ - $ 988,168 $ 12,544,379
EXHIBIT 10, Schedule 3
M. Wilson 36 Other Tax 1 70200 $ 25,879 $ (25,879) $ -
M. Wilson 37 Property Taxes 2 70203 $ 1,388,498 $ 340,754 $ 1,729,252
M. Wilson 38 Payroll Taxes (combined FICA, FUI, SUI) Pages 3, 4 & 5 70250 $ 977,609 $ 23,310 $ 1,000,920
39 Total Taxes Other $ 2,391,986 $ - $ - $ 338,185 $ 2,730,171
40 Total Operating Expenses $ 36,427,336 $ 359,284 $ 22,573,213 $ 2,024,200 $ 38,810,820
Normalizing Adjustments: To exclude Reserves and adjust Historic Test Year Case No.VEO-W-24-01
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) Bucci/Wilson
5/ Materials (reclassification amount in Adjusted Test Year) Jacob/Cagle/Arp
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)

Veolia Water Idaho,Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended August 31,2024,as Adjusted
Adjustment No.3
Pension Cash Contributions
Account 91500,71257,26310
Line Year Pension Cash
No. Description ended Contributions Amount Adjustment Amount
1 To adjust employee Pension expense based on projected cash contribution amounts.Subject to true up. $ (193,268)
2 Baseline established in VEO-W-22-02 Order 35762 Attachment A to establish deferral threshold $ 585,796
3 Pension Cash Contributions for reference only 2021 $ 1,3485611
4 2022 $ 585,796
5 2023 $ 298,856
6 Subtotal $ 2,2335263
7 Average of prior 3 years cash contributions for reference only divided by 3= $ 744,421
8 Test Year Pension cash contribution estimate $ 680,609
9 Projected Pension service cost based on test year ratio below $ 2215063
10 Projected Pension interest component based on test year ratio below $ 4595546
11 Test Year Pension Cash Contribution and updated proposed deferral threshold $ 680,609
12 Historic Test Year Expense per books(91500)Pension service cost 32.5% $ 2835837
13 Historic Test Year Expense per books(71257)Pension interest component 67.5% $ 590,040
14 Historic Test Year Pension Expense at August 31,2024 $ 873,877
15 Adjustment(Test Year less Historic Test Year) $ (193,268)
Case No.VEO-W-24-01
Exhibit No. 10
Schedule 1
L.Bucci
Page 3

Veolia Water Idaho,Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended August 31,2024,as Adjusted
Adjustment No.4
Post-retirement Benefits Other than Pension(PBOP)
Account 91550,71258
Line Adjustment
No. Description Amount
1 To adjust employee PBOP(post-retirement benefits other than pension)amount based on 2024 Actuarial projection. $ (38,286)
Amount Total
2 Projected PBOP expense per Actuarial projection $ (486,928)
3 PBOP Expense Service cost $ 76,589
4 PBOP Expense -all other PBOP costs $ (563,517)
5 Test Year PBOP expense $ (486,928)
6 Historic Test Year PBOP expense $ (448,642)
7 PBOP Expense Service cost(Account 91550)at Historic Test Year ended August 31, $ 76,546
PBOP Expense-all other PBOP costs consisting of interest cost,expected return on
assets,prior service cost amortization and(gain)/loss amortization(Account 71258)at
8 Historic Test Year ended August 31,2024 $ (525,188)
9 Historic Test Year Expense(Account 91550,71258)at August 31,2024 $ (448,642)
10 Adjustment(Test Year less Historic Test Year) $ (38,286)
Case No.VEO-W-24-01
Exhibit No.10
Schedule 1
L.Bucci
Page 4

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended August 31,2024,as Adjusted
Adjustment No.5
Employee Healthcare
Account 91700
Line Adjustment
No. Description Amount Total Amount
To adjust employee healthcare expense(medical,dental and vision),to expected costs and to the test year number of
1 employees.Group term life, and long term disability insurance are projected at historic test year amounts. Excludes $ 395,374
Healthcare IBNR(Incurred but not reported)reserves.
2 Gross Historic Test Year Healthcare Expenses(Account 91700 all CE's)year ended August 31,2024 $ 2,220,131
3 Employee Offsetting Contributions(PAYjournal entries) $ (525,529)
4 Net Historic Test Year Healthcare Costs(Account 91700 all CE's) $ 1,694,602
5 Exclude Historic Test Year IBNR-Incurred But Not Reported claims reserves(as shown) $ 127,885
6 Adjusted Net Historic Test Year Healthcare Costs ended August 31,2024 $ 1,566,717
7 Test Year Employees 136
8 Calculated Employer Healthcare costs(based on employees and plan elections as of August 31,2024) $ 1,882,803
Life Insurance, Long Term Disability Costs and Other Benefits based on Historic Test Year ended
9 August 31,2024(Account 91700 other than CE 523010&523011) $ 79,287
10 Test Year Total Healthcare Costs $ 1,962,090
11 Adjustment(Test Year less Historic Test Year) $ 395,374
Case No.VEO-W-24-01
Exhibit No.10
Schedule 1
L. Bucci
Page 5

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31,2024
Adjustment No. 6
Employee 401 k
Account 91800
Line Adjustment
No. Description Total 401K Amount
To adjust 401 k matching expense to Test Year based on Historic Test Year ratio expense amount to eligible
1 payroll expense. $ 25,032
Gross Payroll
401kExpense eligiblefor401k Ratio
2 Historic Test Year 12 months ending August 31,2024 $ 511,836 $ 10,823,621 4.73%
3 Test Year Regular Employee Gross wages+Rest Time $ 11,352,972 4.73% $ 536,868
4 Historic Test Year Expense at August 31, 2024 $ 511,836
5 Adjustment(Test Year less Historic Test Year) $ 25,032
Case No.VEO-W-24-01
Exhibit No. 10
Schedule 1
L. Bucci
Page 6

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended August 31, 2024, as Adjusted
Adjustment No. 7
Other Employee Benefits-Tuition &Other Awards
Account 91850 (Tuition)&91860 (Other Awards)
Line Adjustment
No. Description Amount Total Amount
1 1 U dUJUSL ULI ICI UIIIIJIUyCC UUIICIILJ 1LUILIUI I CApt!I IbU) LU I UbL T Udl IUVUI UdbUU UII rIISLUIIL; I UbL $ (85,244)
V—r rn+in of omnl--- KI—nli—ll+k— A—n—lc fnr DiIM Fmnlnvoo D—nni+inn A\l1/O A
2 Historic Test Year Expense(Account 91850)Tuition at August 31, 2024 $7,691
3 Historic Test Year Employees as of August 2024 137
4 Historic Test Year expense per employee $56.14
5 Test Year Employees 136
6 Test Year Expense-Tuition (Test Year Employees x Historic Test Year Expense per employee) $ 7,635
7 Historic Test Year Expense(Account 91860) Other Awards at August 31, 2024 $ 135,188
Adjust costs for Employee Recognition Awards pilot program based on customer feedback, to a
8 reduced award level. $ (85,188)
9 Test Year Expense-Other Awards $ 50,000
10 Adjustment(Test Year less Historic Test Year) $ (85,244)
Case No: VEO-W-24-01
Exhibit No. 10
Schedule 1
L. Bucci
Page 7

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31, 2024, as Adjusted
Adjustment No.9
Purchased Water
Account 50605
Line Adjustment
No. Description Amount
To adjust Purchased Water Cost for rented and leased natural flow rights, shares in canal
1 company's contracts/leases for storage water and purchases from Garden City. $ -
Details Amount Total
2 Shares Leased in Canals $ 104,231
3 Contract Storage $ 49,065
4 Basin 63 Rental Pool $ 277,398
5 Garden City Water Purchase $ 2,369
6 Test Year Purchased Water $ 433,064
7 Historic Test Year Expense at August 31,2024 $ 433,064
8 Adjustment(Test Year less Historic Test Year) $ -
Case No.VEO-W-24-01
Exhibit No. 10
Schedule 1
L. Bucci
Page 9

Veolia Water Idaho,Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended Augut 31,2024,as Adjusted
Adjustment No.13
Customer Billing Expenses
Account 50405
Line Adjustment
No. Description Test Year Amount Amount
1 To adjust customer billing expense for customer growth,postage and bill generation cost increases. $ 17,175
2 Historic Test Year Expense Customer Bill Generation&Postage Expense(50405)at August 31,2024 $ 323,460
3 Customer growth%per historic test year(all customer classes) 0.1%
4 Projected impact of customer growth on customer billing expenses $ 409
Postage Increase July 14,2024 for metered mail 1-oz.from$0.64 to$0.69,a 7.81%increase
5 (CE684001)applied to historic test year amount 7.8% $ 180,304
6 Postage increase impact $ 14,086
CSG(bill generation vendor)processing cost increase 2.99%applies to approximately 32%of
total bill generation costs and other fees cost increase 2.86%applies to approximately 32%of
total bill generation costs as of October 2024(CE684002),based on latest Historic Test Year
7 August 2024 Invoice and applied to the Historic Test Year amount. $ 143,156
8 CSG bill generation cost increase impact amount $ 2,680
9 Test Year Customer Billing Expense $ 340,635
10 Adjustment(Test Year less Historic Test Year) $ 17,175
Case No.VEO-W-24-01
Exhibit No.10
Schedule 1
L.Bucci
Page 13

Veolia Water Idaho,Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31,2024,as Adjusted
Adjustment No.14
Bad Debt
Account 90400,90405
Line Adjustment
No. Description Amount
1 To normalize bad debt expense from Historic Test Year amount. Exclude allowance for uncollectible reserves(Account 90405)from uncollectible expenses reflected below. $ (18,215)
Bad Debt 90400 Bad Debt
Revenues (without Reserve) Reserve 90405 Uncollectible% Total
2 Historic Test Year Revenues $ 59,317,269
3 Historic Test Year Expense Account 90400 and Bad Debt Reserve Account 90405 at August 31,2024 $ 350,571 $ 2,097 $ 352,668
4 Normalizing Adjustment-Exclude Bad Debt Reserve 90405 $ (2,097) $ (2,097)
5 Adjusted Historic Test Year Expense excluding Bad Debt Reserve 90405 at August 31,2024 $ 350,571
6 Percentage Bad Debt Accounts Expense(90400)of Revenues-per Historic Test Year 0.5910
7 Projected Total Test Year Revenues at Present Rates $ 56,235,286
8 Test Year Bad Debt Expense X 0.5910% _ $ 332,356
9 Adjustment(Test Year less Historic Test Year) $ (18,215)
Case No.VEO-W-24-01
Exhibit No.10
Schedule 1
L.Bucci
Page 14

Veolia Water Idaho,Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31,2024,as Adjusted
Adjustment No.15
Materials
Account 50300
Line Adjustment
No. Description Amount
1 To normalize materials expense based on Historic Test Year amount. $
Amount
2 Historic Test Year Expense $ 276,106
3 Normalizing Adjustment: -
4 Adjusted Historic Test Year Expense at August 31,2024 276,106
5 Test Year Materials Expense $ 276,106
6 Adjustment(Test Year less Adjusted Historic Test Year) $ -
Case No.VEO-W-24-01
Exhibit No.10
Schedule 1
L.Bucci
Page 15

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31, 2024, as Adjusted
Adjustment No. 18
Advertising
Account 50651
Line Adjustment
No. Description Amount
To normalize customer outreach advertising expense. Eliminate from Historic
Test Year duplicated costs due to timing of various customer outreach campaigns
as well as accruals and reclasses.Add Rules& Regulations bill insert and LCRR
1 postcard notification. $ 19,286
Adjustments Amount
2 Historic Test Year Advertising Expense at August 31,2024 $ 116,722
Remove Donahoe Pace customer education Conservation 2023 costs-appeared
3 twice in Historic Test Year due to timing of campaigns $ (4,000)
4 Remove accruals and reclasses $ (1,443)
5 Add Drapers Associates Rules& Regulations bill inserts not reflected in Historic Test Year $ 9,379
6 Add LCRR notification postcard printing costs-estimated. Subject to true-up. $ 15,350
7 Test Year Advertising Expense $ 136,008
8 Adjustment(Test Year less Historic Test Year) $ 19,286
Case No.VEO-W-24-01
Exhibit No. 10
Schedule 1
L. Bucci
Page 18

Veolia Water Idaho,Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31,2024,as Adjusted
Adjustment No.20
General Insurance
Account 91400
Line Adjustment
No. Description Amount
To adjust casualty and property insurance to remove IBNR-incurred but not recorded reserves and to include deductible claim payments expense GL account 26200 CE
75002.Premiums for Casualty and Property Insurance are included in M&S fees 90850,and prior to Sept.2019 Claims Payments were also included in M&S Fees
1 90850. $ 154,558
Insurance(with Expense
IBNR Reserves, without
without claims Exclude Reserves with
costs)Account Reserves in Claims Payments Claims
Year 91400 per books 91400 26200 payments Total
2 2021 $ 204,689 $ (49,992) $ 311,853 $ 466,550
3 2022 $ (332,351) $ 283,389 $ 182,271 $ 133,309
4 2023 $ 74,279 $ 4,429 $ 83,662 $ 162,370
5 Average $ 254,076
6 Test Year Casualty Business Insurance Expense(not including premiums $ 254,076
7 Historic Test Year Amount(per books) $ (28,071)
Adjustment to Historic Test Year to exclude Reserves and include Claims payments $ (77,878) $ 49,711 $ 99,518
8 Account 26200.(Insurance Premiums included in M&S Fees 90850)
9 Adjusted Historic Test Year Amount excluding Reserves,including Claims $ 99,518
payments,and excluding premiums included in M&S Fees 90850,at August 31,
2024
$ 154,558
10 Adjustment(Test Year less Historic Test Year)
Case No.VEO-W-24-01
Exhibit No.10
Schedule 1
L.Bucci
Page 20

Veolia Water Idaho,Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31,2024,as Adjusted
Adjustment No.21
IPUC Fees
Account 91900
Line Adjustment
No. Description Amount
1 To adjust Historic Test Year level of IPUC Annual Assessment based on latest invoice. $ 8,017
Details Amount Total
2 Projected Total Test Year Revenues at Present Rates $ 56,235,286
3 IPUC 2024 Utility Assessment Rate-Based on IPUC Invoice 2024-226 Dated April 16,2024 0.2127%
4 Test Year IPUC Assessment $ 119,612
5 Historic Test Year Expense $ 111,595
6 Adjustment $ 8,017
Case No.VEO-W-24-01
Exhibit No. 10
Schedule 1
L.Bucci
Page 21