20250509Direct Johns.pdf

RECEIVED
May 09, 2025
Preston N. Carter, ISB No. 8462 IDAHO PUBLIC
Morgan D. Goodin, ISB No. 11184 UTILITIES COMMISSION
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]
Attorneys for IVeolia Water Idaho Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF Case No.VEO-W-24-01
VEOLIA WATER IDAHO INC. FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR WATER SERVICE IN
THE STATE OF IDAHO
TESTIMONY OF DAVID JOHNS
IN SUPPORT OF STIPULATION AND SETTLEMENT
MAY 9,2025

I Q. Please state your name, business address, and present position with Veolia Water
2 Idaho, Inc. ("Veolia" or "Company").
3 A. My name is David Johns. My business address is 8248 W. Victory Rd. Boise, Idaho. 1
4 am the Regional President, Veolia Water Idaho, Inc.
5 Q. Please describe your involvement in this proceeding.
6 A. I filed direct testimony to support Veolia's application in this matter. I also assisted in
7 responding to product requests, attended Staff s onsite audit, and attended the settlement
8 conference.
9 Q. What is the purpose of your testimony?
10 A. The purpose of my testimony is to describe the Stipulation and Settlement ("Settlement")
11 that was signed by parties in the case,to express the Company's support of the Settlement,
12 and to recommend that the Commission approve the Settlement without change.
13 Q. Please describe the Company's initial filing.
14 A. The Company made its original filing with the Idaho Public Utilities Commission
15 ("IPUC" or"Commission") on November 22, 2024 seeking a revenue increase of
16 $11,158,946 or 19.84% over current rates for the Test Year period ending December 31,
17 2024 ("Test Year") including an overall rate of return of 7.47%. The most significant
18 driver for the request was, and continues to be, the Company's continuing infrastructure
19 investments to improve the safety, security, environmental and regulatory compliance,
20 reliability, and efficiency of our systems, all to enhance the quality of service to our
21 customers.
22 Q. While maintaining confidentiality, please describe the process that resulted in the
23 Settlement.
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D.JOHNS,DI-SETTLEMENT
VEOLIA WATER IDAHO,INC.

1 A. After the Company filed its Application, Staff engaged in extensive discovery, including
2 11 sets of production requests containing 175 individual requests, and a three-day onsite
3 audit. Afterwards, the parties met for an all-day settlement conference on March 10,
4 2025, which resulted in the Stipulation and Settlement.
5 Q. Did all Parties join the Settlement?
6 A. Yes. In addition to Commission Staff,both intervening parties, the City of Boise and
7 Micron Technology, Inc.,joined in the Settlement.
8 Q. Please describe the Settlement.
9 A. The Settlement has several components, each of which are addressed in the Settlement
10 itself. In short, the Settlement reflects the Parties' agreement providing for a revenue
11 increase of$7.0 million, or 12.4%to be reflected in base rates, and agreement regarding:
12 revenue requirement; certain components of revenue requirement; an overall rate of
13 return of 7.05%; an adjustment to rate base associated with the Five Mile mainline
14 extension project; cost of service,rate design and rate spread and; miscellaneous changes
15 to the tariff. The settlement also includes an agreement to hold workshops to discuss
16 items set forth in the Settlement. Each of these items is set forth in the Settlement and
17 exhibits.
18 Q. Do you believe that the Settlement is in the public interest?
19 A. Yes. Each of the components of the Settlement was thoroughly discussed and negotiated
20 during the settlement conference, with the participation of the Parties. I believe that each
21 Parry took into account a variety of factors, including the basis for the request and likely
22 outcome of a technical hearing. The Settlement reflects a reasonable compromise of these
23 issues, and while each party had to compromise, I believe the overall result reflects a just,
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D.JoHNs,DI-SETTLEMENT
VEOLIA WATER IDAHO,INC.

1 fair, and reasonable outcome that balances the needs of the Company and those of the
2 Parties and the public. For these reasons, I request that the Commission approve the
3 Settlement without change.
4 Q. Does this conclude your testimony?
5 A. Yes.
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D.JoHNs,DI-SETTLEMENT
VEOLIA WATER IDAHO,INC.