20250915Exhibit 6 - Revenue Requirement.pdf

EXHIBIT 6

Dry Creek Water Company,LLC
Case No.DRY-W-25-01
Revenue Requirement
2024 Test Year
Actual Proforma Forecast
REVENUE REQUIREMENT 2024 2026
601 Salaries&Wages-Employees $ - $ 148,143 $ 148,143
604 Employee Pensions&Benefits 2,179 14,807 16,986
615 Purchased Power 44,470 221 44,691
618 Chemicals 9,260 2,460 11,720
620 Materials and Supplies 61,261 (8,584) 52,677
630 Contractual Services-Billing 21,927 4,358 26,284
631 Contractual Services-Engineering 16,509 (7,201) 9,309
633 Contractual Services-Legal 166,711 (77,910) 88,801
635 Contractual Services-Testing 15,624 (11,021) 4,603
636 Contractual Services-Other 49,010 8,500 57,510
641 Rental ofBuilding/RealProperty - 38,681 38,681
675 Misc-Postage and deliveries 204 1,500 1,704
403 Depreciation Expense-Water $214,634 141,125 $355,758
403 CIAC Amort ($78,987) (20,658) ($99,645)
408.10 Regulatory Fees(PUC) 1,411 750 2,161
408.12 Payroll Taxes - 10,826 10,826
Return $0 558,489 $558,489
408.11 Op.Property Taxes(State) $0 21,018 $21,018
409.10&409.11 Income Taxes(State and Fed) $0 287,533 $287,533
Revenue Requirement 524,212 1,113,037 1,637,249
Revenue Requirement For Rates 524,212 1,113,037 1,637,249
Utility Revenues 663,525 352,652 $1,016,176
(Increase in Revenue needed) ($139,313) 621,073
(Percent increase in revenue needed) -21.00% 61.12%
RATE BASE
Gross Plant $8,357,985 $2,292,885 $10,650,870
Accum Depr ($656,902) ($525,190) ($1,182,092)
Net Plant $7,701,083 $1,767,695 $9,468,778
CIAC ($3,652,355) ($837,101) ($4,489,456)
Working Capital(8 Mo.Op.Costs) $48,394 ($4,461) $62,639
Prepaid Water Meters 36,604 (17,024) 19,580
Prepaid Yoke Adapters 8,131 (4,203) 3,928
Prepaid Radio Readers 23,713 (12,013) 11,700
Rate Base $4,165,571 $892,893 $5,077,169
INCOMETAX
Return $458,213 $100,276 $558,489
Less:Interest $0 $0 $0
Taxable Income $458,213 $100,276 $558,489
Grossed Up Tax Rate 51.65% 51.65% 51.48%
Taxes $236,681 $51,795 $287,533
RATE OF RETURN
Weight Rate of Return Rate of Return
Debt 53.50%
Equity 46.50%
11.00% 11.00%
Income Tax Gross-Up Factor
1 Total Taxable Income 1.000 1.000 1.000
2 Less:State Income Tax 0.058 0.058 0.057
3 Income for FIT(Line 1-Line 2) 0.942 0.942 0.943
4 FIT Tax Rate 0.300 0.300 0.300
5 Line3XLine4 0.283 0.283 0.283
6 Net(Line 3-Line 5) 0.659 0.659 0.660
7 Gross-Up Factor-1/Line 6 1.517 1.517 1.515
Dry Creek Water Company,LLC
Case No.DRY-W-25-01
Exhibit No.6-Revenue Requirement