20241122Direct Michael Wilson_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]
18557787.1 [30.2641
Attorneys for TVeolia 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 MICHAEL WILSON
FOR VEOLIA WATER IDAHO,INC.
NOVEMBER 22,2024

I INTRODUCTION
2 Q. Please state your name, occupation and business address.
3 A. My name is Michael Wilson. I am the Manager- Financial Planning, Reporting and
4 Analysis for Veolia Water Idaho, Inc. ("Veolia Water Idaho' or"Company"). My business
5 address is 8248 West Victory Road, Boise, Idaho 83709.
6 Q. Please summarize your educational background.
7 A. I was granted a Bachelor of Science in Computer Science from Steven-Henager College in
8 2008 and a Bachelor of Science in Business Administration from Lewis-Clark State
9 College in 2000. I attended NARUC Utility Rate School in 2020.
10 Q. Please summarize your professional experience.
11 A. I have been employed by Veolia Water Idaho for 20 years, and have served as Manager-
12 Financial Planning, Reporting and Analysis since 2022. In this capacity, I direct the
13 preparation, consolidation, and presentation of financial planning processes such as the
14 annual operating budget, forecasting, medium term plan, and monthly variance analysis. I
15 lead the response to internal and external audit inquiries, including the Idaho Public
16 Utilities Commission, ("IPUC") audit of the Pollution Control Exemption filing.
17 Additionally, I prepare the annual reports for the IPUC and Idaho State Tax Commission.
18 Prior to my promotion to Manager, I was in a Supervisor role for two years
19 performing similar job functions. Prior to the Supervisor role, I held the title of Sr.
20 Financial Analyst and before that, Accounting/Finance Clerk. In those roles, I built
21 foundational knowledge of regulatory accounting performing a variety of functions
22 including payroll, accounts payable,journal entry, and general ledger account
PAGE 1 OF 11
M.WILsoN,DI
VEOLIA WATER IDAHO,INC.

I reconciliation. Over the course of my career at Veolia Water Idaho, I have assisted in rate
2 case data preparation and production responses.
3 Q. What is the purpose and nature of your testimony?
4 A. The purpose of my testimony is to sponsor and discuss certain adjustments summarized in
5 Exhibit 10, Schedule 1 —Adjustments to Operating and Maintenance Expenses and to
6 sponsor Exhibit 10, Schedule 3 - Taxes.
7 Q. What adjustments will you be sponsoring in Exhibit 10, Schedule 1?
8 • Exhibit 10, Schedule 1 - Operating Expense Adjustments:
9 o Adjustment No. 1 - Payroll
10 o Adjustment No. 2 - Workers Compensation
11 o Adjustment No. 8 - Payroll Overheads (Fringe Benefit Allocation)
12 o Adjustment No. 10 - Energy - Purchased Power& Other Utilities
13 o Adjustment No. 11 - Chemicals
14 o Adjustment No. 12 - Subcontractors
15 o Adjustment No. 16 -Vehicle Allocation
16 o Adjustment No. 17 - Office Expenses
17 o Adjustment No. 22 - Safety
18 o Adjustment No. 29 -Adjustment to Variable Expenses Due to Volume
19 Normalization
20 Company Witnesses Bucci and Jacob will discuss additional operating and
21 maintenance expense adjustments in their Testimony and Exhibits.
22 Q. What adjustments will you be sponsoring in Exhibit 10, Schedule 3 - Taxes?
23 • Exhibit 10, Schedule 3 - Taxes:
PAGE 2 OF 11
M.WILsoN,DI
VEOLIA WATER IDAHO,INC.

1 o Adjustment No. 1 - Other Taxes (Excise Tax)
2 o Adjustment No. 2 - Property Taxes (Ad Valorem)
3 o Adjustment No. 3 - FICA Tax
4 o Adjustment No. 4 - Federal Unemployment Insurance Tax
5 o Adjustment No. 5 - State Unemployment Insurance Tax
6 Q. What Test Year is the company using in the instant filing?
7 A. For this rate case filing, Veolia Water Idaho used a historic test year consisting of a 12-
8 month period ending on August 31, 2024 ("Historic Test Year") and a 4-month adjustment
9 period ending on December 31, 2024. For the Historic Test Year data, Veolia Water Idaho
10 has relied on its books and records, which are prepared and maintained in conformity with
11 the Uniform System of Accounts prescribed by the Commission.
12 Q. Please describe the approach you have taken in preparing the exhibits for operation
13 expenses.
14 A. I have relied on information and data produced within the Company, and my own
15 investigation thereof, as the basis for adjustments in order to appropriately reflect the costs
16 expected to be incurred during the period rates will be in effect as a result of this filing.
17 Q. Please describe the various normalizing and annualizing adjustments, as well as
18 known and measurable adjustments, made to operating expenses Exhibit 10,
19 Schedule 1.
20 A. Adjustment No. 1 Pam increases payroll to Operations and Maintenance expense by
21 $135,265. Test Year Operations &Maintenance payroll expense is $7,806,288 and the pro
22 forma amount is $7,941,553. Test Year gross payroll is $12,880,190 and pro forma gross
PAGE 3 OF 11
M.WILsoN,DI
VEOLIA WATER IDAHO,INC.

I payroll is $12,528,487. The Test Year amount is subject to true-up. The components of this
2 adjustment are:
3 Number of positions: In the pro forma year, the Company work force is 136 full
4 time employees (72 Bargaining Unit and 64 non-bargaining).
5 Wages: Labor is calculated at the wages in effect as of December 31, 2024. For all
6 Bargaining Unit employees,pay rates are applied to 2,080 hours in the pro forma year and
7 for Non-Bargaining employees, pay rates are applied to 1,950 hours. The pro forma labor
8 to Operations &Maintenance amount is calculated using the Test Year ratio of 62.31% of
9 opex payroll to gross payroll.
10 Standby Pay, Shift Pay and Overtime Pay: The pro forma adjustment includes
11 calculated standby pay and shift pay at pro forma pay rates for eight Bargaining Unit
12 employees. Standby pay is calculated at the overtime rate of 1.5 times the regular hourly
13 wage. Each standby rotation is generally 18 hours per week. Operational Shift Pay is for
14 coverage at the water treatment plants for Second Shift and Third Shift during increased
15 seasonal demands April to November, and Distribution Operator Shift covers the weekend
16 and Second Shift(After Hours). Shift pay is at$1.25 per hour per the Bargaining Unit
17 Contract. Customer Service Representatives receive shift pay for rotational duties
18 performed related to cashiering,bankruptcy and billing functions at the established rate
19 based on functional level.
20 Overtime is included at the Historic Test Year level with no additional adjustments.
21 Rest Pay: When an employee works 12 or more hours in a 24-hour period that
22 employee will receive a paid 8-hour rest period at the employee's straight time hourly rate
PAGE 4 OF 11
M.WILsoN,DI
VEOLIA WATER IDAHO,INC.

I per the Bargaining Unit Contract. Proforma calculation based on Historic Test Year
2 average monthly amount, annualized.
3 Longevity Pay: Full-time, Bargaining Unit employees in good standing with the
4 company, after completing the required number of years' service, receive an annual
5 payment in December. These payments are calculated at the straight time (base pay)hourly
6 rate and applicable certification pay of the Job Classification the employee holds. For
7 employees with 5-14 years of service they receive 2%Longevity Pay and employees with
8 15+years of service receive 4% Longevity Pay.
9 Annual Incentive Plan (AIP): Veolia Water Idaho's Annual Incentive Plan applies
10 to both exempt (salaried) and nonexempt(hourly) employees as a percentage of base pay
11 for achieving targets related to Veolia Water Idaho's Multifaceted Indicators (MFI), safety
12 performance targets,personal objectives, and financial performance objectives. MFI's
13 include Customer Focus and Operational Efficiencies. Individual personal objectives apply
14 to exempt employees only. The Financial performance portion of the AIP amount has
15 been excluded from the rate request.
16 Q. Please identify and explain the change in number of staff from the prior rate case
17 period ending December 31, 2022?
18 A. The Company's number of employees at December 31, 2022 was 133. Since that time, the
19 company has added an Engineering Accounting Analyst, two Project Managers, an
20 Operations Technology Specialist, backfilled an open EHS Specialist role and eliminated
21 one Customer Service Representative and the Assistant General Manager position. The
22 total proforma number of staff as of December 31, 2024 is anticipated to be 136 and
23 subject to true-up.
PAGE 5 OF 11
M.WILsoN,DI
VEOLIA WATER IDAHO,INC.

I Q. Please continue with the remaining normalizing and annualizing adjustments, as well
2 as known and measurable adjustments made to operating expenses.
3 A. Adjustment No. 2 Workers Compensation increases workers compensation insurance by
4 $32,028 from the Historic Test year amount of$68,115. It is adjusted to exclude IBNR
5 (incurred but not reported) reserves that were reflected in Test Year and prior years that are
6 not part of regulatory recognized expenses. The pro forma amount is based upon the three
7 year average of workers compensation percentage as a ratio of the adjusted gross payroll
8 amount which removed the financial portion of the AIP. A pro forma adjustment is made
9 to exclude historic Test Year IBNR reserves credit of$4,658 posted in account 91460 and
10 include claim payments of$13,026 in account 26200 to an adjusted Historic Test Year
11 amount of$85,799. The average for the last three calendar years (2021 through 2023),
12 produces a ratio of 0.924% of workers compensation expense to gross payroll. Applying
13 this ratio to the proforma level of Adjusted Test Year Gross payroll $12,745,576, along
14 with the above mentioned adjustments results in pro forma expense of$117,827.
15 Adjustment No. 8 Payroll Overheads normalizes fringe benefit costs chargeable to
16 accounts other than Operations and Maintenance expense and reduces test year O&M
17 expense by$132,253. The Test Year credit is $1,307,201 and the pro forma credit is
18 $1,439,454. The Company uses a fringe benefit allocation(FBA)method to ensure
19 employee benefits follow labor charges. A portion of fringe benefit costs are therefore
20 transferred off the income statement to the balance sheet,primarily following labor
21 charged to capital projects. The Test Year relationship of capitalized payroll to gross
22 payroll dollars is 37.69%. This same rate is applied to pro forma benefit costs.
PAGE 6 OF I I
M.WILsoN,DI
VEOLIA WATER IDAHO,INC.

I Adjustment No. 10 Energy increases the pro forma cost of purchased power by
2 $317,512 from the Historic Test year amount of$2,869,189 to the pro forma amount of
3 $3,186,702. The pro forma expense reflects Test Year billing determinants priced at
4 current Idaho Power Company (Idaho Power) tariff base rates. The Company is aware that
5 Idaho Power has a pending case before the Commission in which it is seeking an increase
6 in base rates; the Company will provide the impact once known and measurable. Power
7 expense is reduced by ($72,812)the anticipated proceeds from participation in the Idaho
8 Power demand response program previously administered by EnerNOC. Pro forma
9 expense also includes the test level expense of other power, diesel fuel for generators,
10 natural gas and other utility costs.
11 Q. Does the Company defer any portion of Idaho Power Company billings?
12 A. Yes, the Company follows Commission Accounting Order No. 28800 in Case No. UWI-
13 W-01-02 which allowed the Company to defer Idaho Power Company's PCA and FCA
14 charges and present the accumulated deferral for amortization recovery in subsequent rate
15 filings.
16 Q Briefly, how was pro forma power expense calculated?
17 A. Pro forma power expense is based on twelve months of Idaho Power Company's invoices
18 for pumping and distribution costs. Veolia Water Idaho consumed 38,378,750 kWh in the
19 Test Year and the same kWh and billing determinants are used in the projection for the pro
20 forma period. These units were priced out at Idaho Power Company tariff rates in effect in
21 January 2024 for schedules 7, 9S and 9P and in June 2024 for Power Cost Adjustment
22 rates per tariff Schedule 55. Added to this electricity expense is the Test Year level of
23 generator fuel, other power and other utility costs.
PAGE 7 OF 11
M.WILsoN,DI
VEOLIA WATER IDAHO,INC.

I Q. How is power expense normalized to match Company Witness Michaelson's pro
2 forma revenue adjustments?
3 A. In Adjustment 29, the Test Year revenue adjustments made by Company Witness
4 Michaelson's Exhibit 5 Schedule 4 VWID and Eagle (Adjustments R1 -Annualization of
5 Historic Test Year Growth, R2 - Customer Growth, and R3 -Weather Normalization)
6 result in a pro forma reduction to both energy and chemical costs of($290,315) combined.
7 Q. Please proceed with your next adjustment.
8 A. Adjustment No. 11 Chemicals decreases adjusted historical Test Year chemical expense of
9 $768,319 by $27,601, to a pro forma expense of$740,718. Treatment chemicals are
10 utilized in the water treatment process to disinfect drinking water, to otherwise make water
11 safe to consume, or to improve water aesthetically. Test year quantities for each chemical
12 agent were totaled and priced out at the most recent actual invoice price. Additional
13 adjustments include excluding a chemical reclass for a prior to Test Year correction,
14 reducing use of citric acid going forward due to clean in place process optimization, and
15 adding chemicals needed for well maintenance that will be incurred before end of Test
16 Year December 2024.
17 Adjustment No. 12 Subcontractor Expenses includes certain costs for field
18 contractors, water quality testing fees and location services and increases them by $46,117
19 from a Test Year expense of$1,066,558 to a pro forma amount of$1,112,675. The
20 adjustment includes a reduction of$8,500 to exclude non-recurring photography services
21 from the Test Year. An additional reduction of$19,205 is made to exclude RedSky
22 communications support costs related to a non-recurring decarbonization workshop. Added
23 costs include $11,827 for a quarterly Sensus USA AMI Endpoint/Analytics fee to
PAGE 8 OF 11
M.WILsoN,DI
VEOLIA WATER IDAHO,INC.

I normalize a full year's worth of charges. Water quality testing is increased by $61,996 for
2 timing related to a June invoice received and paid in September 2024.
3 Adjustment No. 16, Vehicle Allocation, increases net expense by $159,612 from
4 the Historic Test Year level of$754,934 to a Test Year amount of$914,546. The Company
5 uses a vehicle allocation process to distribute transportation costs to the applicable income
6 statement or balance sheet accounts. All components of gross vehicle costs such as lease
7 payments (net of proceeds from disposal), fuel, maintenance materials and outside
8 contractors, mechanic payroll and benefits, insurance, depreciation, GPS service and others
9 are coded to a clearing account on the Company's balance sheet. On a monthly basis, these
10 costs are cleared to expense or capitalized based upon the time allocation of departments
11 with assigned vehicles. The Historic Test Year allocation of gross costs to operations and
12 maintenance net expense is 51.54%.
13 Gross costs in the Historic Test Year were $1,464,841 and increased to a Test Year
14 amount of$1,774,440. Applying the Historic Test Year allocation of 51.54%results in a
15 Historic Test Year net expense of$754,979 and Test Year of$914,546. The increase is
16 driven by a normalization and gross pay reduction of mechanic payroll and benefits of
17 $24,884 (only including the current contractual wage at a standard 2080 hours, plus fringe
18 costs). Additionally, a true-up of auto insurance expense increases by a gross amount of
19 $334,483 by excluding Historic Test Year IBNR$32,783 (incurred but not reported claims
20 reserves) and adding in auto insurance claims payments $301,700. The result of these
21 insurance adjustments is a Test Year amount of negative $38,984.
22 Adjustment No. 17 Office Expenses increases certain expenses by $42,551 from
23 the Test Year amount of$726,981 to a pro forma amount of$769,532. Specifically, the
PAGE 9 OF 11
M.WILsoN,DI
VEOLIA WATER IDAHO,INC.

I adjustment includes an increase of$37,983 for planned postage costs for mailing required
2 by Lead and Copper Rules and Regulations (LCRR), subject to true up, as well as a
3 decrease of$3,366 to exclude certain expense transactions for employee travel deemed
4 non-recoverable upon review. Finally, the Test Year is increased by $7,934 for Cityworks
5 licensing costs known to increase per a 4.5% contractual agreement.
6 Adjustment No. 22 Safety Expense No adjustment made from Historic Test Year.
7 Adjustment No. 29 Variable Expense Volume Normalization reduces Test Year
8 operating expenses for Power& Chemicals by $290,315 to coincide with the revenue
9 reduction adjustment made by Company Witness Michaelson based on his review&
10 analysis of the downward consumption trend of Veolia Water Idaho customers. The ratio
11 of variable Historic Test Year operating expenses (Power $2,869,189 and Chemicals
12 $768,319) totaling $3,637,508 to Historic Test Year variable consumptive volume in 100
13 cubic feet(CCF) of 20,624,573 is 17.637%. Company Witness Michaelson makes Test
14 Year Revenue related volume adjustments to include the annualization of Historic Test
15 Year growth of 109,846, post Test Year customer growth of 36,409, a weather&usage
16 adjustment to consumptive volume and annualization of historic Test Year existing
17 customers volume of-1,792,335 for a net consumption decrease of 1,646,080 CCF per his
18 Exhibit 5 Schedule 4 VWID and Eagle. Since this consumptive volume decline must
19 logically impact power and chemical expense, they will decrease by 17.637% of 1,646,080
20 CCF or$290,315.
21 Q. Please explain Exhibit No. 10, Schedule 3, Pages 1, 2,3,4 and 5.
22 A. Exhibit No 10, Schedule No 3, Adjustment No 1, Page 1 of 5
PAGE 10 OF 11
M.WILsoN,DI
VEOLIA WATER IDAHO,INC.

I Other Taxes - Taxes other than Income Tax (Account 70200) adjusts Other Tax for
2 Federal Excise Tax assessed on the purchase of two dump trucks which is not expected to
3 be a routine, recurring expense. Reducing the Historic Test Year amount of$25,879
4 results in a Test Year amount of$0.
5 Exhibit No 10, Schedule No 3, Adjustment No 2, Page 2 of 5
6 Property Taxes The Test Year book amount of$1,388,498 is increased by $340,754
7 to the pro forma expense of$1,729,252 and which will be subject to true-up when the
8 current levy rate becomes known.
9 The pro forma calculation utilizes the assessed value per Idaho State Tax
10 Commission dated May 31, 2024 of$255,788,298, a composite levy rate estimate (subject
11 to true-up) of 0.67500%, and $2,681 of irrigation district taxes based on Historical Test
12 Year, to produce a pro forma property tax expense of$1,729,252.
13 The 2023 assessed value included a 12%reduction per an Idaho Supreme Court
14 case and Board of Equalization adjustment for which, according to the Idaho State Tax
15 Commission, Veolia Water Idaho does not benefit from this reduction in 2024.
16 Q. Please explain Exhibit No. 10, Schedule 3,Adjustments 3, 4 and 5 Payroll Taxes.
17 A. Exhibit No. 10, Schedule 3, Pages 3, 4 and 5 increases the Test Year level of payroll taxes
18 by $23,310 combined. Page 3 shows an increase in FICA taxes of$25,698. Page 4 shows a
19 decrease of($362) in Federal unemployment taxes. Page 5 shows a decrease of($2,026)
20 in Idaho State unemployment taxes. All payroll taxes have been adjusted based on actual
21 2024 statutory limits and rates in effect for 2024.
22 Q. Does this conclude your direct testimony?
23 A. Yes.
PAGE 11 OF 11
M.WILsoN,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 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 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 ending August 31, 2024, as Adjusted
Adjustment No. 1
Adjustment of Payroll Expense
Account 50100 - 50125
Line Employee Adjustment
No. Description Dept. ID Count Amount Total Payroll Amount
1 To adjust labor chargeable to operation and maintenance expense based upon $ 135,265
bargaining unit, salaried and non-exempt pay rates at December 31, 2024. Subject to true up.
2 Production 100 $ 2,576,537
3 Transmission and Distribution 113 $ 3,234,686
4 Engineering 205 $ 2,070,621
5 Customer Service Field 301 $ 460,268
6 Customer Service Office 304 $ 931,992
7 Meter Reading 305 $ 451,672
8 Administrative 400 $ 899,557
9 Communication 405 $ 197,277
10 Human Resources 415 $ 107,123
11 Finance 530 $ 326,721
12 Subtotal Gross Regular Pay 136 $ 11,256,452
13 Stand By Pay per Bargaining Unit Contract calculated $ 417,690
14 Shift Pay per Bargaining Unit Contract& Customer Service rotation, calculated $ 19,230
15 Seasonal Temporary Employees & Summer Interns $ -
16 New Longevity Pay per Bargaining Contract based on hire date, calculated $ 50,057
New Rest Time Pay per Bargaining Contract based on historic test year amount,
17 annualized $ 96,520
AIP Hourly Non-Bargaining Incentive Pay- based on Pro Forma employees &
18 wages (% by position), calculated $ 25,259
AIP Salaried Incentive Pay- based on Pro Forma employees &wages (% by
19 position), calculated $ 647,808
20 Overtime per Historic test year ending August 31, 2024 $ 367,174
21 Subtotal Gross Other Pay $ 1,623,738
22 Test Year Gross Payroll $ 12,880,190
Adjustment- Exclude portion of AIP Incentive pay that is based on financial
performance (EBITDA), which in previous general rate cases was disallowed
23 from recovery. $ (134,613)
24 Adjusted Test Year Gross Payroll excluding portion of AIP Incentive Pay $ 12,745,576
25 Historic Test Year Gross Payroll Expense (Accounts 50100 to 50115) at August 31, 2024 $ 12,528,487
26 Historic Test Year Net Payroll Expense (Accounts 50100 to 50125) at August 31, 2024 $ 7,806,288
Net Labor/Gross Labor:
27 Historical Test Year%Applicable to O&M Expense at August 31, 2024 Accounts (50100 to 50125)/ (50100 to 50115) = 62.31%
28 Test Year Net Payroll to Operations and Maintenance $ 7,941,553
29 Adjustment (Test Year less Historic Test Year) $ 135,265
Case No. VEO-W-24-01
Exhibit No.11
Schedule 1
M. Wilson
Page 1

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31, 2024, as Adjusted
Adjustment No. 2
Workers Compensation
Account 91460
Exclude WC Include Adjusted
WC expense IBNR Claims Workers
per books with Reserves Payments Compensation
IBNR Reserves (Account (AP Journals w/o reserves,
Line Gross Payroll (Account 91460 as Account with claims
No. Description (50100 to 50115) 91460) shown) 26200) payments Ratio Amount Adjustment Amount
To normalize employee Workers Compensation expense based on a three
year average of gross payroll. Adjustment to eliminate workers compensation
costs Reserves (IBNR- Incurred but not recorded). Adjustment to include
1 Deductible Claim payments booked to GL account 26200 Cost Element 75004 $ 32,028
2 2021 $ 9,408,215 $ 55,494 $ 7,638 $ 38,767 $ 86,623 0.921%
3 2022 $ 10,824,206 $ (3,958) $ (89,640) $ 22,764 $ 108,446 1.002%
4 2023 $ 11,847,586 $ 94,590 $ 8,644 $ 15,551 $ 101,497 0.857%
5 Three Year Total $ 32,080,007 $ 146,126 $ (73,358) $ 77,082 $ 296,565
6 Average of last three years (excludes reserves, includes claims payments) 0.924%
7 Test Year Gross Payroll -Adjusted to remove financial portion of AIP incentive pay $ 12,745,576
8 Test Year Workers Compensation expense (Gross Payroll * Ratio) X 0.924% $ 117,827
9 Historic Test Year Expense per books (includes IBNR Reserves) as of August $ 68,115
31, 2024
Normalizing Adjustments: Exclude Historic Test Year ending August 31, 2024
10 IBNR reserves posted in account 91460, include WC claims payments AP $ (4,658) $ 13,026
journals in acount 26200 CE 750004
11 Adjusted Historic Test Year amount(WC expense 91460 without IBNR $ 85,799
12 Adjustment(Test Year less Historic Test Year) $ 32,028
Case No.VEO-W-24-01
Exhibit No. 10
Schedule 1
M. Wilson
Page 2

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended August 31, 2024, as Adjusted
Adjustment No. 8
Payroll Overheads (Fringe Benefits Allocation)
Account 90950 and 90953
Line Adjustment
No. Description Account Benefits Amount Amount
To normalize the fringe benefit allocation charged to non-operations and maintenance accounts based on
1 historic test year% of labor. *Subject to change when benefit costs are available. $ (132,253)
Test Year Benefit Costs
2 Payroll Taxes 70250 $ 1,000,920
3 Workers Compensation 91460 $ 117,827
not 91500 expense
per books but Cash
4 Pension (Cash Contribution -service cost only) Contribution $ 680,609
5 PEBOP (Post retirement health care and amort.) 91550 $ (486,928)
6 Group Health & Life 91700 $ 1,962,090
7 401 k 91800 $ 536,868
8 Other Employee Benefits -Tuition Assistance 91850 $ 7,635
9 Subtotal Test Year Benefit Costs $ 3,819,021
Historic Test Year Percentage of Non-Operations & Maintenance payroll (account 50120
to 50125)to Gross Payroll Account 50100 to 50115)applied to benefit costs at August
10 31, 2024 37.69%
11 Test Year fringe benefit clearing costs allocated $ (1,439,454)
12 Historic Test Year expense at August 31, 2024 $ (1,307,201)
13 Adjustment (Test Year less Historic Test Year) $ (132,253)
Case No. VEO-W-24-01
Exhibit No. 10
Schedule 1
M.Wilson
Page 8

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31, 2024, as Adjusted
Adjustment No. 10
Energy- Purchased Power and Other Utilities
Account 50610 and 50620
Line Adjustment
No. Description Amount
1 To adjust energy expense based on pricing at Idaho Power rates effective June 2024 and miscellaneous other energy and utility costs based on $ 317,512
Tarriff Details kWh Amount Total
2 9P Columbia and Marden Water Treatment Plants, Boise River Raw Water Pump Station (50610) $ 723,483
3 9S Wells & Boosters (50610) $ 2,175,075
4 7 Wells & Boosters (50610) Other power: Office Lights, Clinton Warehouse, Valves, Misc. (50620) $ 25,874
5 40C Street light(50620) $ 26
6 Historic Test Year pumping & distribution power per Idaho Power invoices at historic test year tariff rates (50610 38,378,750 $ 2,924,458 $ 2,924,458
7 Reprice Historic Test Year Idaho Power pumping &distribution power invoices to June 2024 tariff rates:
8 9P Columbia and Marden Water Treatment Plants, Boise River Raw Water Pump Station (50610) $ 785,615
9 9S Wells & Boosters (50610) $ 2,371,294
10 7 Wells & Boosters (50610) Other power: Office Lights, Clinton Warehouse, Valves, Misc. (50620) $ 32,448
11 40C Street light(50620) $ 25
12 Test Year pumping &distribution power per test year Idaho Power invoices repriced at June 2024 tariff rates 38,378,750 $ 3,189,382 $ 3,189,382
13 Impact of repricing tariff rates $ 264,924
14 Test Year Diesel Fuel for Emergency Generators based on Historic Test Year amount (50610) $ 27,527
15 Test Year anticipated benefit of Idaho Power Demand Response Program rebate based on Historic Test Year amount(50620) $ (72,812)
16 Test Year Natural Gas, Other Utilities, accrual based on Historic Test Year amount (50620) $ 42,605
17 Test Year Total Other Power $ (2,681)
18 Total Test Year Power& Other Utility Expense $ 3,186,702
19 Historic Test Year Power& Other Utility Expense ended at August 31, 2024(Account 50610 & 50620) $ 2,869,189
20 Adjustment(Test Year less Historic Test Year) $ 317,512
Case No. VEO-W-24-01
Exhibit No. 10
Schedule 1
M. Wilson
Page 10

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended August 31, 2024, as Adjusted
Adjustment No. 11
Chemicals
Account 50635
Line
No. Description Adjustment Amount
To adjust chemical expense using historic test year quantities priced at current prices. Adjust Historic teat year to exclude chemical reclass for a
prior to test year correction. Reduce use of Citric Acid going forward due to clean in place process optimization. Add chemicals needed for well
1 maintenance that will be incurred before end of Test Year December 2024. Subject to true-up. $ (27,601)
2 Water Treatment Chemicals $ 742,715
3 Well Maintenance Chemicals $ 2,383
4 Adjustment- Reduce Test Year chemicals for Citric Acid clean-in-place process optimization - reduce quantity $ (24,380)
5 Adjustment-Add Well cleaning chemicals that were not able to be included in the Historical Test Year, but will $ 20,000
6 Adjusted Test Year Expense $ 740,718
7 Historic Test Year Expense per books before adjustment $ 758,808
8 Exclude historic test year chemical reclass journal credit that pertains to a prior year correction $ 9,511
9 Adjusted Historic Test Year expense at August 31, 2024 $ 768,319
10 Adjustment(Test Year less Adjusted Historic Test Year) $ (27,601)
Case No. VEO-W-24-01
Exhibit No. 10
Schedule 1
M. Wilson
Page 11

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ended August 31, 2024, as Adjusted
Adjustment No. 12
Subcontractors
Account 50400
Line Adjustment
No. Description Amount
Subcontractor expenses normalized to exclude one-time photography services and
communications support costs that are not typical annual expenses, and include an annual
amount of costs for Sensus AMI endpoints/Analytics fee and add missing June water
1 quality testing bill that was received and paid in September. $ 46,117
Cost Element Categories Amount Total
2 127105- Network (Fixed telecom charges were in account 50650 previously) $ 66,651
3 641002 - Legal Services $ 133,534
4 641003- Professional Services $ 62,057
5 641004-Temporary Help $ 24,644
6 641015- Field Contractors (Maint., repairs, Paving, Generator Maint, Traffic Control, $ 204,706
7 641016 -Testing (Water Quality) $ 166,386
8 641017 - Other(predominantly Customer Service related costs) $ 112,108
9 641019- Markouts $ 32,257
10 641045- E-Payment Convenience Fees $ 224,671
11 642004 - SAAS and Public Cloud $ 42,886
12 Other Cost Element Categories $ (3,342)
13 Historic Test Year Amount at August 31, 2024 $ 1,066,558
14
641003 Professional Services - Exclude photography services from $ (8,500)
test year- not a routine, recurring cost
15 641003 Professional Services - Exclude RedSky communications $ (19,205)
16 641017 - Other-Adjust to include one missing quarterly Sensus USA $ 11,827
17 641016 -Water Quality Testing -Timing of June invoice 2404846 $ 61,996
received and paid in September
18 Test Year Expense $ 1,112,675
Adjustment (Test Year less Historic Test Year) $ 46,117
Case No. VEO-W-24-01
Exhibit No. 10
Schedule 1
M. Wilson
Page 12

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31, 2024, as Adjusted
Adjustment No. 16
Vehicle Allocation
Account 50645 & 50646
Line Adjustment
No. Description Amount
To adjust vehicle allocation expenses including all elements delineated below for fleet of Vehicles and heavy equipment based on
1 projected expense. $ 159,613
Historic Test Year Adjustment Test Year
Details Cost Element Amount Amount Total
2 Mechanic payroll and benefits 682001 Labor Expense $ 135,290 $ (24,884) $ 110,407
3 Lease Cost(Net of proceeds) 682002 Leased Vehicles $ 853,312 $ 853,312
4 Fuel 682003 Vehicles:Gasoline $ 250,125 $ 250,125
5 Materials, Maintenance 682004 Vehicle Maintenance $ 302,009 $ 302,009
6 Auto Insurance (Premiums only) 682005 Auto Insurance $ 36,622 $ 36,622
7 Auto Insurance (Claims and reserve adjustments) 682005 Auto Insurance $ (373,466) $ 334,483 $ (38,984)
8 Other Costs, Depreciation, Tax, Vehicle allowance, etc. 682006 Other Transporation Cosi $ 260,949 $ 260,949
9 Sub Total Test Year Vehicle Allocation Gross Cost $ 1,464,841 $ 309,599 $ 1,774,440
Test Year O&M Vehicle Allocation ratio based on August 2024 Historic Test Year-
10 Account 50646 CE 522705/50646 51.54% 51.54% 51.54%
11 Total Test Year Expense $ 754,934 $ 159,613 $ 914,546
12 Historic Test Year Expense 50645 & 50646 before adjustments at August 31, 2024 $ 754,934
13 Mechanic payroll and benefits (Normalize to standard work year and fringe) $ 110,407 $ (24,884)
14 Exclude Historic Test Year IBNR- Incurred But Not Reported claims reserves $ 32,783
15 Add Auto Insurance Claims payments-GL Account 26200 CE 682005 $ 301,700
16 Adjustment (Test Year less Historic Test Year) $ 159,613
Case No.VEO-W-24-01
Exhibit No. 10
Schedule 1
M.Wilson
Page 16

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31, 2024, as Adjusted
Adjustment No. 17
Office Expenses
Account 50650
Line Adjustment
No. Description Amount
1 postage. $ 42,551
Cost Element Category Amount
2 701001 - Cellular Phone $ 83,778
3 701002 -Telephone Equipment $ 93,630
4 701003 - Communication Other $ 2,697
5 701004 - Office Supplies $ 43,952
6 701005 - Dues and Subscriptions (NAWC, AWWA, etc.) $ 46,403
7 701006 - Licenses and Fees $ 31,931
8 701007 -Advertising $ 152
9 701008 - Postage and Air Freight $ 44,513
10 701009 - Staff Mtgs, Conf and Seminars $ 35,722
11 701012 -Air Transportation $ 28,729
12 701013 - Ground Transportation $ 4,920
13 701014 - Hotel and Lodging $ 22,923
14 701015 - Meals $ 10,227
15 701016 - Other Office Expense (Cityworks, Technology) $ 277,404
16 Historic Test Year Expense at August 31, 2024 $ 726,981
17 701008 -Add LCRR Notification Postcard calculated postage. Subject to true up. $ 37,983
18 701014 - Exclude P-card transactions for travel that should have been coded to $ (3,366)
19 701016 - Cityworks License cost 4.5% contractual increase $ 7,934
20 Test Year Expense $ 4,568 $ 769,532
Adjustment (Test Year less Historic Test Year) $ 42,551
Case No.VEO-W-24-01
Exhibit No. 10
Schedule 1
M.Wilson
Page 17

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31, 2024, as Adjusted
Adjustment No. 22
Safety
Account 92200
Line Adjustment
No. Description Safety Expense Amount Amount
1 Safety Expenses $ -
2 683001 - Safety Clothing & Uniforms $ 64,825
3 683002 - Safety Equipment&Training (Fire safety, Hearing tests, Asbestos Training, Confined Space certification, Trench $ 73,934
4 683003 - Safety Material - General (Safety Glasses, Boots, Gloves, etc) $ 73,744
5 Test Year Safety Expense $ 212,503
6 Historic Test Year Expense at August 31, 2024 $ 212,503
7 Adjustment (Test Year less Historic Test Year) $ -
Case No. VEO-W-24-01
Exhibit No. 10
Schedule 1
M. Wilson
Page 22

Veolia Water Idaho, Inc.
Details of Adjustments to Operations and Maintenance Expense
Historic Test Year ending August 31, 2024, as Adjusted
Adjustment No. 29
Adjustment to Variable Expenses Due to Volume Normalization
Line Adjustment
No. Description Amount
To adjust purchased power expense and chemical expense based on consumption volumes for the upward annualized growth for the test year and full year additional
1 revenue/customers through December 31, 2024 offset by volume normalization. $ (290,315)
Details Detail Amount
2 Historic Test Year Purchased Power Expense $ 2,869,189
3 Historic Test Year Chemical Expense -Adjusted 768,319
4 Total Variable Cost Related to Volume Normalization $ 3,637,508
5 Historic Test Year Consumption (in CCF) revenue at present rates (per Exhibit 5 Schedule 3) 20,624,573
6 Ratio of Variable Cost to Variable Consumption 17.637%
7 Adjustment R1 Annualization of Historic Test Year Growth CCF -
8 Adjustment R2 Customer Growth CCF -
9 Adjustment R3 Weather Usage Adjustments CCF -
10 Adjustment R4 Annualization of Historic Test Year Existing Customers CCF Exhibit 5 Sched 4 -1,646,080
11 Total Volume Adjustment Impact (in CCF) -1,646,080
12 Test Year Consumption (in CCF), (per Exhibit 5 Schedule 4) 18,978,493
13 Variable Expense associated with Volume Normalization = Total Volume Adjustment Impact in CCF * Ratio of Variable Costs to Variable Consumption $ (290,315)
14 Adjustment $ (290,315)
Case No. VEO-W-24-01
Exhibit No. 10
Schedule 1
M. Wilson
Page 29

Veolia Water Idaho, Inc.
Details of Adjustments to Other Taxes
Historic Test Year ending August 31, 2024, as Adjusted
Adjustment No. 1
Other Taxes-Taxes other than Income Tax
Account 70200
Adjustment
No. Description Amount
To adjust Other Tax for Federal Excise tax assessed on purchases of two dump trucks. Not expected to be a
1 routine, recurring expense. $ (25,879)
Details Amount Total
2 May 2024 Federal Excise Tax Dump Truck purchase -voucher 00136263 $ 13,139
3 July 2024 Federal Excise Tax Dump Truck purchase-voucher 00136816 $ 12,740
4 Historic Test Year Other Tax Expense per Books $ 25,879
5 Test Year Other Tax Expense $ -
6 Adjustment (Test Year less Historic Test Year) $ (25,879)
Case No.VEO-W-24-01
Exhibit No. 10
Schedule 3
M. Wilson
Pagel

Veolia Water Idaho, Inc.
Details of Adjustments to Ad Valorem Property Taxes
Historic Test Year ending August 31, 2024, as Adjusted
Adjustment No. 2
Property Taxes
Account 70203
Line Adjustment
No. Description Amount
To adjust Property Tax expense based on the 2024 year end valuation using levy rate as projected. Subject to update when levy
1 rate and tax is known. $ 340,754
Details Amount Total
2 2023 Assessed Value recommended by the Idaho State Tax Commission -Appraisal dated $ 193,185,561
3 2023 Ada County Property Tax Expense per Nov. 11, 2023 tax bill $ 1,490,543
4 2023 Ada County Composite Levy Rate- calculated 0.77156%
5 2023 Irrigation District Taxes & Eagle tax bills $ 2,681
6 Historic Test Year Property Tax Expense per Books $ 1,388,498
7 2024 Assessed Value by the Idaho State Tax Commission per Appraisal dated May 31, 2024 $ 255,788,298
8 Test Year Composite Levy Rate estimate. Subject to true up. 0.67500%
9 Test Year Ada County Property Tax estimate $ 1,726,571
10 Test Year Irrigation District Taxes & Other Assessments based on historical test year $ 2,681
11 Test Year Property Tax Expense $ 1,729,252
12 Adjustment (Test Year less Historic Test Year) $ 340,754
NOTE: 2023 assessed value included one-time 12% reduction per Idaho Supreme Court case and Board of Equalization
adjustment for which according to the Idaho State Tax Commission, Veolia does not benefit from in 2024. Case No. VEO-W-24-01
Exhibit No. 10
Schedule 3
M. Wilson
Page 2

Veolia Water Idaho, Inc.
Details of Adjustments to Payroll Taxes
Historic Test Year ended August 31, 2024, as Adjusted
Adjustment No. 3
Payroll Taxes
At Present Rates
Account 70250
Line Adjustment
No. Description Amount
1 To adjust Employer FICA Tax Liability- Federal Insurance Contributions Act $ 25,698
Social Security Medicare
Details Amount Amount Combined
2 FICA Base for 2024 $ 160,200 No Limit
3 FICA Rate for 2024 6.20% 1.45%
4 Adjusted Test Year Gross Payroll $ 12,745,576 $ 12,745,576
5 Wages in Excess of FICA base $ 193,935 No limit
6 Taxable Wages $ 12,551,641 $ 12,745,576
7 FICA Tax Rates 6.20% 1.45%
8 Test Year FICA Tax $ 778,202 $ 184,811 $ 963,013
9 Historical Test Year Expense at August 31, 2024 $ 937,314
10 Adjustment (Test Year less Historic Test Year) $ 25,698
Case No.VEO-W-24-01
Exhibit No. 10
Schedule 3
M. Wilson
Page 3

Veolia Water Idaho, Inc.
Details of Adjustments to Payroll Taxes
Historical Test Year ended August 31, 2024, as Adjusted
Adjustment No. 4
Payroll Taxes
At Present Rates
Account 70250
Line Adjustment
No. Description Amount
1 To adjust Federal Unemployment Insurance Tax $ (362)
Details Amount
2 Federal Taxable Base limit $ 7,000
3 Federal Tax Rate 0.60%
4 Employees covered by Federal Unemployment Tax
(136 Test Year Employees @ $7,000 limit)
5 Taxable Wages $952,000
6 Tax Rate 0.60%
7 Test Year Federal Unemployment Tax $ 5,712
8 Historical Test Year Expense $ 6,074
9 Adjustment (Test Year less Historic Test Year) $ (362)
Case No.VEO-W-24-01
Exhibit No. 10
Schedule 3
M. Wilson
Page 4

Veolia Water Idaho, Inc.
Details of Adjustments to Payroll Taxes
Historical Test Year ended August 31, 2024, as Adjusted
Adjustment No. 5
Payroll Taxes
At Present Rates
Account 70250
Line Adjustment
No. Description Amount
1 To adjust State Unemployment Insurance Tax $ (2,026)
Details Amount
2 2024 Idaho Taxable Base $ 53,500
3 2024 Idaho SUTA Tax Rate Class 2 Positive 0.469%
4 Employees covered by State Unemployment Tax
(136 Test Year Employees)
5 Test Year Taxable Base $ 53,500
6 Test Year Taxable Wages $ 6,864,600
7 Test Year Tax Rate 0.469%
8 Test Year Idaho Unemployment Tax $ 32,195
9 Historical Test Year Expense $ 34,221
10 Adjustment (Test Year less Historic Test Year) $ (2,026)
Case No.VEO-W-24-01
Exhibit No. 10
Schedule 3
M. Wilson
Page 5