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HomeMy WebLinkAbout20250128VEO to Staff 127_129-134.pdf RECEIVED Tuesday, January 28, 2025 IDAHO PUBLIC Preston N. Carter, ISB No. 8462 UTILITIES COMMISSION Morgan D. Goodin, ISB No. 11184 Megann E. Meier, ISB No. 11948 Givens Pursley LLP 601 W. Bannock St. Boise, Idaho 83702 Telephone: (208) 388-1200 Facsimile: (208) 388-1300 prestoncarter(&r zivenspursle, morgan o�ggivenspursley.com memk ia�g venspursle�com 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 ) VEOLIA WATER IDAHO,INC.'S RESPONSE TO THE FOURTH PRODUCTION REQUEST OF COMMISSION STAFF ) Veolia Water Idaho, Inc. ("Veolia" or"Company")provides the following in response to the Fourth Production Request of the Commission Staff dated January 7, 2025. Responsive documents are available for download using the link provided in the accompanying email. Confidential responses and documents are subject to the protective agreement in this case, and are available for download using a password-protected link that will be provided separately by email. The password will be provided in a third email. Dated: January 28, 2025. VEOLIA WATER IDAHO,INC. Preston N. Carter Attorney for Veolia Water Idaho, Inc. RESPONSE TO STAFF's FOURTH PRODUCTION REQUEST PAGE I OF 2 CERTIFICATE OF SERVICE I certify that on January 28, 2025, a true and correct copy of the foregoing was served upon all parties of record in this proceeding via electronic mail as indicated below: Commission Staff Via Electronic Mail Monica Barrios-Sanchez, Commission Secretary monica.barriossanchez@puc.idaho.gov Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg. 8, Suite 201-A Boise, ID 83714 Chris Burdin Chris.burdin@puc.idaho.gov Deputy Attorney General Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg. 8, Suite 201-A Boise, ID 83714 Micron Technology, Inc. Austin Rueschhoff darueschhoff@hollandhart.com Thorvald A. Nelson tnelson@hollandhart.com Austin W. Jensen awjensen@hollandhart.com Kristine A.K. Roach karoach@hollandhart.com Holland& Hart, LLP aclee@hollandhart.com 555 17t' Street, Suite 3200 Denver, CO 80202 City of Boise Mary R. Grant mrgrant@cityofboise.org Deputy City Attorney boisecityattomey@cityofboise.org Boise City Attorney's Office 150 N. Capitol Blvd. Boise, ID 83701 Steven Hubble shubble@cityofboise.org Climate Action Senior Manager rleebeusan@cityofboise.org Robin Lee-Beusan Water Resources Program Coordinator / Preston N. Carter RESPONSE TO STAFF'S FOURTH PRODUCTION REQUEST PAGE 2 OF 2 VEOLIA WATER IDAHO,INC. CASE VEO-W-24-01 FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Johns REQUEST NO. 127: While the Application indicates that the Company would like to remove the Private Fire Hydrant charges from the Tariff,the intended benefit and purpose of this change is unclear. Please provide clarification on the intent of this request and if this proposed change will reclassify the Private Fire Hydrant to a Public Fire Hydrant upon completion of installation. RESPONSE NO. 127 The Company is proposing to add a definition of Private Fire Hydrants to its Rules &Regulations (paragraphs 45 and 46) and request Commission approval to remove charges for Private Fire Hydrants by eliminating the existing tariff Schedule No. 4-Private Fire Hydrants(PFH rate). The intent of this request is to better define ownership and obligations of the Company and property owners with respect to private fire hydrants, as there is not currently a common definition of private fire hydrants in the tariff. The requests also alleviates billing challenges identified by the Company and improves broader public safety by providing clarity about certain fire suppression obligations. Removing the PFH rate will not change the Private Fire Hydrant ownership status, change hydrant classification from private to public, or change the property owner's obligations for private hydrant maintenance. While working with the City of Boise and Whitney Fire District to transfer ownership of public Hydrants to the Company (as approved by the Commission in Case No UWI-W-15-02, VEO-W- 23-04), challenges were identified including lack of definition of Private Fire Hydrants, and therefore historic classification of hydrants, various installation scenarios (e.g. with or without backflow prevention, on the Company's main or on a private main, etc.), and as a result, not all Private Hydrants were being billed in accordance with the tariff. The Company believes that consistent rate treatment across fire hydrant service, both public and private, is appropriate as all customers are contributing equally to public safety through base rates VEO-W-24-01 IPUC DR 127 Page 1 of 2 rather than including a separate charge for customers that happen to have a hydrant on their property rather than in the public right of way. As discussed in testimony, the proposed definitions are the fruit of a collaborative effort with the intention of enhancing public safety as a common definition is provided, property owners will be on notices with respect to responsibilities for private fire hydrants located on their property regarding operation and maintained at the owner's expense. The cost to install, relocate, maintain, and operate (Private) hydrants located on private property will continue to be borne by the property owner. The cost to install,relocate,maintain,and operate (Public) hydrants located in rights of way, for hydrants owned by the Company for public fire protection, will continue to be borne by the Company and recovered from all customers. The Company will continue to maintain hydrants owned by the Company and located in the right of way and the Company's obligation as it relates to (Private)hydrants located on private property is to ensure adequate reliable water supply. VEO-W-24-01 IPUC DR 127 Page 2 of 2 VEOLIA WATER IDAHO,INC. CASE VEO-W-24-01 FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Cooper REQUEST NO. 129: Please provide a copy of the Company's overhead calculation in Excel format with formulas intact. RESPONSE NO. 129 Please see Attachment to this response. VEO-W-24-01 IPUC DR 129 Page 1 of 1 VEOLIA WATER IDAHO,INC. CASE VEO-W-24-01 FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Jacob REQUEST NO. 130: Please provide the supporting documentation for rate case expenses provided on lines 4-9 in Adjustment No. 23. RESPONSE NO. 130 As stated in the testimony of Company Witness Jacob,the Company seeks recovery of the current rate case costs, which are estimated. Please also refer to the response provided in IPUC Request No. 80 (which is being supplemented monthly with actual rate case costs incurred to date). Estimates were developed based on the Company's previous rate case experience. Further explanation of each line item is provided below. Rate case expenses constitute the cost of Legal Services, Outside Expert Services, Intervenor Costs, Mailing Notifications, and Other Miscellaneous Services. Legal services costs are based on estimates from the prior Veolia Water Idaho Rate Case which assumes a fully litigated rate case. Outside Expert services costs are made up of the cost of consulting services provided for the Rate of Return Study and the Lead Lag Study and includes their respective cost of planning, analysis, data collection, development of the studies,minimum filing requirements and testimony. Included is also an estimate of post filing work, responding to interrogatories, and hearing preparations. Intervenor costs are estimated based on past proceedings to accommodate the request of intervenors for reimbursement of costs incurred as parties to the rate case filing. Cost of mailing customer notifications as required by the Commission was estimated based on the cost of mailing the customer flyer to the approximately 107,000 customers in our service territory. VEO-W-24-01 IPUC DR 130 Page 1 of 2 Miscellaneous & Other Costs category is a contingency for other costs that might be incurred and does not fit neatly into the other pre-defined classifications. The Company foresees the incurrence of the above costs in the processing of the rate case but will base its amortization of rate case expense based on actual deferred costs incurred in this rate case proceeding. VEO-W-24-01 IPUC DR 130 Page 2 of 2 VEOLIA WATER IDAHO,INC. CASE VEO-W-24-01 FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Jacob REQUEST NO. 131: Please provide the supporting documentation for the deferred power calculation. (Adjustment No. 27). RESPONSE NO. 131 Please refer to Attachment 1 for the calculation of deferred power. Additionally, Attachment 2 shows the calculation updated for actuals through December 31, 2024. VEO-W-24-01 IPUC DR 131 Page 1 of 1 VEOLIA WATER IDAHO,INC. CASE VEO-W-24-01 FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Wilson REQUEST NO. 132: Please provide the supporting documentation of the historic and repricing of power expense as provided in Line Nos. 2-5 and 8-11 of Adjustment No. 10. ESPONSE NO. 132 Please see response Request No. 73 Attachment D Adjustment 10 Energy-Confidential The historic test year Idaho Power Invoice details are on the first worksheet of the attachment - TY Power Bill Details CONFIDEN,cells AT2614 through AT2635.The journal entries supporting these amounts for Adjustment 10 Line No. 2-5, are found on the second worksheet of the attachment-POWER Opex JEs 50610 50620,by filtering Column AW for"Idaho Power Invoice". The repricing calculation totals for Line No. 8-11 are located at the bottom of the first sheet - TY Power Bill Details CONFIDEN, cells AT2649 through AT2661. VEO-W-24-01 IPUC DR 132 Page 1 of 1 VEOLIA WATER IDAHO,INC. CASE VEO-W-24-01 FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Wilson REQUEST NO. 133: Please provide the supporting documentation for the anticipated demand response rebate in Adjustment No. 10. RESPONSE NO. 133 The anticipated power response rebate was based on the Historic Test Year amount of$72,812. Please see Attachment I for the journal entry supporting this amount, Attachment 2, and Attachment 3 for Idaho Power's supporting documentation for the rebate amount. VEO-W-24-01 IPUC DR 133 Page I of I VEOLIA WATER IDAHO,INC. CASE VEO-W-24-01 FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Wilson REQUEST NO. 134: Please provide the supporting documentation for Line No. 18 in the Adjustment No. 10. RESPONSE NO. 134 Please see response Request No. 73 Attachment D Adjustment 10 Energy-Confidential The historic test year Idaho Power Invoice details are located on the first worksheet - TY Power Bill Details CONFIDEN of the attachment,with totals for Adjustment No. 10 Line No. 2-5 located on cells AT2614 through AT2635. The repricing calculation totals for Line No. 8-11 are located at the bottom of the sheet-TY Power Bill Details CONFIDEN, cells AT2614 through AT2661. The second worksheet of the attachment - POWER Opex JEs 50610 50620, will show Historic Test Year journal entry amounts to support Adjustment 10 Line No. 2-5 Idaho Power Invoices by filtering Column AW for "Idaho Power Invoice", Line No 14 - Diesel fuel for emergency generators by filtering Column AW for"Generator",Line No 15 -Idaho Power Demand Response program by filtering Column AW for "Rebate", and Line No 16 - Natural Gas, Other Utilities, Accrual by filtering Column L for account"50620" and column AY for"Other Power". VEO-W-24-01 IPUC DR 134 Page 1 of 1