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HomeMy WebLinkAbout20250224GSW to Staff 5_17_28-30.pdf RECEIVED Monday, February 24, 2025 IDAHO PUBLIC UTILITIES COMMISSION Preston N. Carter, ISB No. 8462 GIVENS PURSLEY LLP 601 West Bannock Street P.O. Box 2720 Boise, Idaho 83701-2720 (208) 388-1200 18597179.3[13988.231 Attorneys for Gem State Water Company, LLC BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION Case No. GSW-W-24-01 OF GEM STATE WATER COMPANY, LLC. FOR THE AUTHORITY TO GEM STATE WATER CO.,INC.'S INCREASE ITS RATES AND CHARGES RESPONSE TO THE FIRST PRODUCTION FOR WATER SERVICE IN THE STATE OF REQUEST OF COMMISSION STAFF IDAHO In response to the First Production Request of the Commission Staff to Gem State Water Co, Inc., ("Gem State" or"Company") dated January 21, 2025, Gem State submits the following responses. 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: February 19, 2025. GIVENS PURSLEY LLP By Is/Preston N. Carter Preston N. Carter Givens Pursley LLP Attorneys for Gem State Water Company, LLC RESPONSES TO STAFF's FIRST PRODUCTION REQUEST PAGE I OF 2 CERTIFICATE OF SERVICE I hereby certify that on February 19, 2025, I caused to be served a true and correct copy of the foregoing document to the person(s) listed below by the method indicated: Monica Barrios-Sanchez ® Email Commission Secretary ❑ U.S. Mail Idaho Public Utilities Commission ❑ Fax P.O. Box 83720 ❑ Hand Delivery Boise, Idaho 83720-0074 monica.barriossanchez&puc.idaho.gov Is/Preston N. Carter Preston N. Carter RESPONSES TO STAFF'S FIRST PRODUCTION REQUEST PAGE 2 OF 2 (�) NW Natural Rates & Regulatory Affairs GSW-W-24-01 In the Matter of Gem State Water Company, LLC's Application for Authority to Increase its rates and Charges for Water Service Data Request Response Witness/Preparer: Leslie Abrams-Rayner Telephone: 877.755.9287 Email: leslie@gemstate-water.com Request No.: GSW-W-24-01 IPUC DR 5 For each of the Company's wells, please provide the quantity (gallons) pumped for each month between January 2020 to date. Response: Please see the attached file GSW-W-24-01 IPUC DR 5 Attachment 1. GSW-W-24-01 IPUC Staff PR 5 Page 1 of 1 (�) NW Natural Rates & Regulatory Affairs GSW-W-24-01 In the Matter of Gem State Water Company, LLC's Application for Authority to Increase its rates and Charges for Water Service Data Request Response Witness/Preparer: Deborah Davis Telephone: 503.610.7612 Email: Deborah.davis@nwnatural.com Request No.: GSW-W-24-01 IPUC DR 17 Please summarize all benefit and retirement plans provided to Company employees of all classifications. Please also include any changes that have occurred to the benefits/accruals during the past five years. Also, please include the costs of those benefit plans supporting the Company's employee benefit expense. Response: The attached file GSW-W-24-01 IPUC DR 17 Attachment 1 provides a summary of all benefits and retirement plans provided to Company employees of all classifications. The attached file GSW-W-24-01 IPUC DR 17 Attachment 2 provides more detail on the available benefits plan. The attached file GSW-W-24-01 IPUC DR 17 Attachment 3 provide historical perspective on changes made to the benefits plans. The attached confidential file Confidential GSW-W-24-01 IPUC DR 17 Attachment 4 shows benefits costs for 2025 which are $3,525 lower than the test year benefits costs. We would not oppose an adjustment to benefits costs that would lower them by that amount. GSW-W-24-01 IPUC Staff PR 17 Page 1 of I (�) NW Natural Rates & Regulatory Affairs GSW-W-24-01 In the Matter of Gem State Water Company, LLC's Application for Authority to Increase its rates and Charges for Water Service Data Request Response Witness/Preparer: Leslie Abrams-Rayner Telephone: 877.755.9287 Email: leslie@gemstate-water.com Request No.: GSW-W-24-01 IPUC DR 28 Please provide the details, scope of work, reason for the project, initial budgets, and bids received, etc. for the following pro forma capital projects: a. New truck; b. Bitterroot System rebuild; and c. Meter Replacement Program. Response: a. New truck — The decision was made to purchase a company truck for the field manager to replace the use of his personally owned vehicle. Given the amount of driving necessary to service Gem State's geographically dispersed systems, use of employee-owned vehicles is untenable. The budget was set at $50,000 which is typical for a full-sized work truck. Comparable vehicles were searched for in the area prior to completing the purchase. A purchase order for the truck is attached as GSW-W-24-01 IPUC DR 28 Attachment 1. b. Bitterroot System rebuild — The Bitterroot system was disapproved by the Idaho Department of Environmental Quality ("IDEQ") in a letter dated April 16, 2019, for violations stemming from improvements completed without prior IDEQ review and approval. Gem State Water acquired the system in late 2019 and was tasked with bringing the system into compliance. Through engineering and working closely with IDEQ, a facilities plan was created addressing the required upgrades. Preliminary engineering reports were submitted to IDEQ for each phase of the project. The project included additional GSW-W-24-01 IPUC Staff PR 28 Page 1 of 2 storage, source, backup power generation, pumping capacity, and additional site improvements. Engineers provided Gem State Water with an estimated cost for system upgrades in 2022. Gem State Water worked through the bidding and procurement with the assistance of the engineers — requiring no less than 2 bids per project phase to ensure best cost and value. This project was identified as a required project to the Commission by Gem State Water during the acquisition of the Bitterroot system. The Facilities Plan is attached as GSW-W-24-01 IPUC DR 28 Attachment 2 and the engineer's cost estimate is attached as GSW-W-24-01 IPUC DR 28 Attachment 3. The total spent on the project is $1,114,073; an Excel spreadsheet detailing the components of that amount is attached as GSW-W-24-01 IPUC DR 28 Attachment 4. Supporting invoices are available on request. c. Meter Replacement Program — A typical water meter has an estimated 20-year life span; all meters on Gem State Water systems were well in exceedance of this estimated service life. Older meters are inaccurate, they leak, and they do not allow remote access during inclement weather. A budget was set for each separate system based on the amount of meters needed and the technology required. Gem State Water received bids from 3 vendors for varying meter brands and technologies before choosing a meter that would perform the best in all applications and provide the most efficient installation, ongoing maintenance, and tech platform for field use. Gem State Water wanted to ensure that we could accomplish a year-round meter reading schedule regardless of snow load and reduce customer leak loss due to months of inaccessible meters. Invoices for all meters purchased are available on request. GSW-W-24-01 IPUC Staff PR 28 Page 2 of 2 (;) NW Natural' Rates & Regulatory Affairs GSW-W-24-01 In the Matter of Gem State Water Company, LLC's Application for Authority to Increase its rates and Charges for Water Service Data Request Response Date of Response: Witness/Preparer: Leslie Abrams-Rayner Telephone: 877.755.9287 Email: leslie@gemstate-water.com Request No.: GSW-W-24-01 IPUC DR 29 Please provide a sortable spreadsheet listing all the fully completed capital projects that have been placed in service since the end of the test period used in the Case No. GSW-W-22-01 (December 31, 2022) and the last date actual plant-in-service is included in the Company's Application (end of the Company's Historic Test Year on September 30, 2024). Projects that are partially placed in service during the Historic Test Year or estimated for completion during the proforma period SHOULD NOT be included on this list. Additionally, please identify which projects are unique one-time projects and which are "blanket" projects that capture multiple recurring smaller projects such as vehicle replacements or O&M type of projects that are capitalized. At a minimum, the list should contain the following information for each project: a. The project unique identification number; b. The project title; c. A short description of the project scope; d. Classification as "one-time" or "blanket" project; e. The project's primary function (based on standard accounting practices); f. The initial approved budget for the project; GSW-W-24-01 IPUC Staff PR 29 Page 1 of 2 g. The latest approved budget for the project; h. The actual expenditures for the project; i. The final in-service date for the project; j. Whether or not the Company solicited contractors to execute some or all of the project; k. The number of change orders; and I. The total cost of the change orders. Response: See the GSW-W-24-01 IPUC DR 29 Attachment 1 . GSW-W-24-01 IPUC Staff PR 29 Page 2 of 2 (�) NW Natural Rates & Regulatory Affairs GSW-W-24-01 In the Matter of Gem State Water Company, LLC's Application for Authority to Increase its rates and Charges for Water Service Data Request Response Witness/Preparer: Leslie Abrams-Rayner Telephone: 877.755.9287 Email: leslie@gemstate-water.com Request No.: GSW-W-24-01 IPUC DR 30 Please provide a sortable spreadsheet listing all the projected capital projects that the Company expects to be placed in service between the last date actual plant-in-service was included in the Company's Application (end of the Company's Historic Test Year on September 30, 2024 and the end of the Company's proforma period (end of the Company's Adjusted Test Year on January 30, 2025. Projects that are partially placed in service during the Historic Test Year or estimated for completion during the proforma period SHOULD be included on this list. Additionally, please identify which projects are unique one-time projects and which are "blanket" projects that capture multiple recurring smaller projects such as vehicle replacements or O&M type of projects that are capitalized. At a minimum, the list should contain the following information for each project: a. The project unique identification number; b. The project title; c. A short description of the project scope; d. Classification as "one-time" or "blanket" project; e. The project's primary function (based on standard accounting practices); f. The initial approved budget for the project; g. The latest approved budget for the project; GSW-W-24-01 IPUC Staff PR 30 Page 1 of 2 h. The actual expenditures for the project; i. The final in-service date for the project; j. Whether or not the Company solicited contractors to execute some or all of the project; a. The number of change orders; and 1. The total cost of the change orders. Response: Please see the GSW-W-24-01 IPUC DR 30 Attachment 1 . Note that the Kamstrup Meter purchase of $253,253 has an in-service date of 6/28/24 within the test year. However, these 575 meters were actually installed starting in the test year and the installations were complete in January 2025. All 575 meters were moved from CWIP to plant in service at the same time when the last meter was installed. The purchase date was used as the in-service date for all these meters. GSW-W-24-01 IPUC Staff PR 30 Page 2 of 2