20151222EAG to Staff 1-20.pdf

MOLLY O'LEARY
BizCounselor@ Law, PLLC
1775 W. State Street #l5O
Boise, ldaho 83702
Tel:[phone]
E-Mail: Mollv @ BizCounselorAtLaw.conr
Attorneys for Eagle Water Company, lnc.
IN THE MATTER OF EAGLE WATER
COMPANY'S APPLICATION FOR AUTHORITY
TO IMPLEMENT A TEMPOMRY CUSTOMER
SURCHARGE.
IIf;CEIVT i:J
?$15 DEC 22 Pl{ h: 38
u r r ir?# bcsburiii iE s r o ;r
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. EAG.W{Sq
EAGLE WATER COMPANY'S
RESPONSES TO FIRST
PRODUCflON REQUEST OF
THE COMMISSION STAFF
COMES NOW, Eagle Water Company, lnc. and in response to the First Production
Request of the Commission to Eagle Water Company dated November 20,2015, herewith
submits the following information:
REQUEST NO. t The Surcharge Application, beginning on page 2,lists system improvements
in item numbers 3 and 4. Please' provide all invoices and all source documents for each and
every item listed.
Response for REust No.l:
The attached Project Cost Summary Reports for each project based on Eagle Water
Company's internal records were created by former Office Manager Betty Holt and current
Office Manager Heather Wilde. These reports were created based on the Company's Time
EAGLE WATER COMPANY'S
RESPONSES TO
FIRST PRODUCTION REQUEST
OF COMMISSION STAFF I DECEMBER 18,2015
Grds for the labor costs and for equipment costs. In addition, invoices and other source
documents were referred to for reporting the Company's material expenses for each project
itemized in Sections 3 9.4 of the Company's current Temporary Surcharge Application.
AII supporting documentation for the attached Project Cost Summary Reports may be
reviewed, in person, at the Company's headquarters, 188 W State St, Eagle, lD 83616, by
contacting Ms. Wilde at208.939.0242 and making an appointment.
This response is made by Ms. Wilde, Office Manager, Eagle Water Company.
REQUEST NO. 2: Please provide a detailed explanation of how the costs listed in items 3 and
4 of the Application are currently accounted for and reflected on the books of Eagle Water
Company.
Response for Request No. 2:
The expenses are generally recorded in Eagle Water Company asset accounts 304*
3O7. A detailed asset listing that shows the majority of the capitalized amounts is attached to
this Production Response. The remainder of the expenses were booked to their respective
repair and maintenance accounts.
This response is made by Alden Holm, CPA. Mr. Holm may be contacted at:
Alden Holm 8I Co., West Valley Business Center,
9446 W. Fairview Ave., Boise, lD 83704;
208.322.O720
REQUEST NO. 3: Please provide a schedule identifying each item and showing the in-service
dates for each plant item listed in items 3 and 4 of the Application.
Rsponse for Reouest No. 3:
a. Main Booster Station - ln service date, 10l3l08,
b. Well #8 - ln service date, 5120112,
c. Well #4 Repairs - Completed., Sll2lOS,
d. Well #5 Repairs - Completed,2124llO
e. State Street Bridge Line Relocation - ln service date,12l28l11,f. HSB Bridge Line Relocation - ln service date,ll4ll2
g. Well #7 Upsize - In service date, 412114
EAGLE WATER COMPANY'S
RESPONSES TO
FrRST PRODUCTTON REQUEST
OF COMMISSION STAFF
DECEMBER r& 20rs
h.Road Line Relocation - ln service date, 5l6l15
This response is made by Ms. Wilde, Office Manager, Eagle Water Company.
REQUEST NO. + Please provide copies of any and all bids received by Eagle Water Company
for each line item listed in numbers 3 and 4 of the Application.
Response for REuest No. 4:
There are no copies of bids for the itemized projects on file at Eagle Water Company.
lndividual service providers, e.g., Priest Electric, were asked to provide cost estimates for
budgeting purposes, and were selected for each project based on the Company's past
experience with the contractor.
ln addition, Eagle Water Company has determined over the course of the 4l years it
has been in existence that it can manage and complete construction of the necessary
infrastructure for the utility faster and more reliably than any third-party contractors, and
with better long-term results in terms of the overall integrity of the Company's system, which
impacts the bottom-line cost to its customers.
This response is made by Robert V. DeShazor lr., President, Eagle Water Company.
REQUEST NO. 5: Please provide the location of the Main Booster Station listed in item
number 3 of the Application. Is this booster station part of the infrastructure of Well #8? If
not, please provide justification for its installation.
Response for Request No. 5:
Location: 10255 Horseshoe Bend Road, Eagle, ldaho
Justification: This booster station serves the entire Eagle Water Company System,
including Well #8. The booster station is critical to the residents in the Eagle Springs
subdivision for water pressure, especially those customers living in the eastern portion of the
subdivision at a higher elevation. ln addition it helps boosts water pressure for all Eagle Water
Company customers along Horseshoe Bend Road.
EAGLE WATER COMPANY'S
RESPONSES TO
FIRST PRODUCTION REQUEST
OF COMMISSION STAFF
DECEMBER 18,2015
This response is made by Robert V. DeShazor lr., President, Eagle Water Company.
REQUEST NO. 5: Please provide the directives requiring the line relocations for the State
Street Bridge, Horseshoe Bend Road Bridge, and Hill Road items listed in number 4 of the
Application. If any payments were received by Eagle Water Company from the entity
requesting the line relocations, please identify the payment amounts and provide the source
documents substantiating the payments.
Response for REuest No. 5:
The Ada County Highway District f'ACHD"l required Eagle Water Company to move
the State Street line and the Horseshoe Bend Road line because it was widening bridges on
those routes. ACHD also required the relocation of the Company's Hill Road line because it
was widening Hill Road. That line relocation also resulted in related system improvements.
ACHD's requests for each of these projects were made in writing, but the only record
the Company currently has of these communications is the electronic mail communication
attached to this Response, regarding the relocation of the State Street Bridge Line. Since
ACHD was the source of the written requests, Staff may be able to obtain copies of the
communications regarding the relocation of the Horseshoe Bend Road Line and the Hill Road
Line from ACHD.
This response is made by Robert V. DeShazo, Jr, President, Eagle Water Company.
REQUEST NO. 7: Please provide the rationale for upsizing the line from 8 inches to 12 inches
for Well #7. Please provide an explanation of why this was not done during the construction
and design of Well #7.
Response for REuest No. Z
At the time that Eagle Water Company completed Well 7, there were insufficient funds
to install l2-inch service lines to service the then-anticipated growth in that part of the
Company's service area, so the Company used surplus 8-inch line. ln the summer of 2015, the
EACLE WATER COMPANY'S
RESPONSES TO
FIRST PRODUCTTON REQUEST
OF COMMISSION STAFF
DECEMBER 18,20t5
Company was finally able to install the l2-inch lines to service additional growth and demand in
that area.
This response is made by Robert V. DeShazo, jr., President, Eagle Water Company.
REQUEST NO. 8: Please provide a description of the repairs to Well #4 and Well #6.
lnclude in your description the reason for the repairs.
Response for REuest No. 8:
a. Well 4 - The motor required rebuilding due to the existing motor breaking.
b. Well 6 - The old [existing) bowls overheated, so new bowls that are designed for
more volume were put in place.
This response is made by Jeff Cornell, Operations Manager, Eagle Water Company.
REQUEST NO. 9: Please provide a detailed accounting showing receipts, payments and the
balance in the existing Surcharge Account authorized in the previous surcharge case IPUC
Order No.307341.
Response for Reouest No. 9:
Eagle Water Company uses a software program called Softwater. Customer payments
are entered into that program and each payment is credited to the appropriate custome/s
account. The Softwater program allocates the appropriate portion of each customer's payment
to the various billing categories [e.9., base rate; City of Eagle Franchise Fees; SurchargeJ. At
the end of each day, The Company runs a Softwater Report of all payments made that day,
and then deposits a check equaling the total reported Surcharge amount to the Surcharge
Account at ldaho Banking Company fnow DL Evans Bank, Eagle BranchJ.
The documentation required for a complete response to this Request is too
cumbersome to copy, as there is a check stub and receipt of deposit stapled to each
document. The PUC Staff may review the Softwater program and its data, as well as all of the
supporting documentation, in person, at the Company's headquarters, 188 W State St, Eagle,
lD 83616, by contacting Ms. Wilde at 208.939.0242 and making an appointment.
EAGLE WATER COMPANY'S
RESPONSES TO
FIRST PRODUCTTON REQUEST
OF COMMISSION STAFF
DECEMBER r& 2or5
This response is made by Ms. Wilde, Office Manager, Eagle Water Company.
REQUEST NO. l0: The Company indicates that the capital projects listed in item numbers 3
and 4 have already been paid for and constructed. Please provide a list of the source of the
funding provided to finance these projects, and provide source documents such as paid
invoices, billings, and cancelled checks, showing payment for these proiects.
Response for Request No. 10:
Funds that were received to reimburse the company for Well 7 and related system
improvements were subsequently used by the Company to pay for Well 8 and the other
itemized project costs as they were incurred.
The PUC Staff may review the Company's financial records, in person, at the Company's
headquarters, 188 W State St, Eagle, lD 83516, by contacting Ms. Wilde at 208.939.0242 and
making an appointment.
This response is made by Robert V. DeShazo, Jr., President, Eagle Water Company.
REQUEST NO. ll: Please provide a description of how the proceeds of the proposed loan will
be dispersed. lnclude the dollar amount to be paid and the name of the person or entity to
receive the payment.
Response for Request No. ll:
AII loan proceeds resulting from this Temporary Surcharge Application will be used for
working capital within Eagle Water Company, as the itemized projects, in addition to those
associated with Well 7,have exhausted the Company's cash flow for system maintenance and
improvements.
This response is made by Robert V. DeShazor lr., President, Eagle Water Company.
REQUEST NO. 12: For Tariff Schedules 2 and 5, please provide the following information for
the year 2014:
a. The number of customers billed under each schedule.
EAGLE WATER COMPANY'S
RESPONSES TO
FIRST PRODUCTION REQUEST
OF COMMISSION STAFF
DECEMBER 18,2015
b. The total volume of water billed under each schedule.
c. The volume subject to the 48.O75o/o surcharge flPUC Order No. 3073,0 under
each schedule.
Response for Request No. 12:
a. The number of customers billed under each schedule.
Schedule 5 - O
Schedule 2 - 3,543
b. The total volume of water billed under each schedule.
Schedule 5 - O
Schedule 2 - 855,8+5,807 cubic feet
c. The volume subject to the 4B.O75o/o surcharge flPUC Order No. 30734) under
each schedule:
There is no readily available report that indicates what the volume of water was that
was subiect to the surcharge in 2014. Glculations have to be made on each and every
account individually. This is a labor-intensive process that Eagle Water Company does
not have adequate staffing to do. The data needed to make this calculation, however, is
attached as RFP #12.
ln addition, the PUC Staff may review the Softwater program and its data, in person, at
the Company's headquarters, 188 W State St, Eagle, lD 83616, by contacting Ms. Wilde
at208.939.0242 and making an appointment.
This response is made by Ms. Wilde, Office Manager, Eagle Water Company.
REQUEST NO. 13: For any Tariff Schedule I customers classified as Master Metered Mobile
Home Parks. Please provide the number of customers, the total billed water volume, and the
billed volume subject to the 48.O75Yo surcharge flPUC Order No. 30734)in 2014.
Response for REuest No. 13:
a. Number of Tariff Schedule I Customers - Seventy-four (74),as of today's date
b. Total billed water volume - 123O,2O0 cf
EAGLE WATER COMPANY'S
RESPONSES TO
FIRST PRODUCTION REQUEST
OF COMMISSION STAFF
DECEMBER 18,20t5
c. Subject to surcharge - 44JOO cf
This response is made by Ms. Wilde, Office Manager, Eagle Water Company.
REQUEST NO. 14: Please provide the total quantity of water provided to United Water
Idaho, Inc. under Tariff Schedule 7 in 2014.
Response for Rquest No. 14:
No water was provided to United Water ldaho, Inc. in 2Ol4 under Tariff Schedule 7.
This response is made by Robert V. DeShazor ]r" President, Eagle Water Company.
REQUEST NO.15: Please provide the number of new customers who were charged hook-up
fees under Tariff Schedule 5 in 2014.
Response for REuest No. 15:
Thirty-three [33J customers were charged permit fees in 2014 under Tariff Schedule 5.
This response is made by Ms. Wilde, Office Manager, Eagle Water Company.
REQUEST NO.15: Recently, Eagle Water Company amended some of its annual reports.
There appear to be some discrepancies related to the customer statistics reported on page 12
of these reports fitems 2A, 28, and 2CJ. For the years 2012,2013, and 2014, please provide
the following information:
a. The numbers of metered residential, commercial, and industrial customers.
b. The volume of water sold to each of these customer classifications.
c. The numbers of flat rate residential, commercial, and industrial customers.
Response for REuest No. 15:
a. The numbers of metered residential, commercial, and industrial customers:
2012: Residential - 3033; Commercial - 450; lndustrial - 0
2Ol3: Residential - 3082; Commercial - 452; lndustrial - O
2Ol4: Residential - 3089; Commercial - 454; Industrial - 0
EAGLE WATER COMPANY'S
RESPONSES TO
FIRST PRODUCTION REQUEST
OF COMMISSION STAFF 8 DECEMBER 18,2015
b. The volume of water sold to each of these customer classifications:
2012: Residential - 528S59,sOBy Commercial -242,079,285; lndustrial - 0
2013: Residential - 541,113,923; Commercial - 251,+26,190; lndustrial - 0
2014: Residential - 584S39,5491Commercial - 282,705,258; Industrial - 0
c. The numbers of flat rate residential, commercial, and industrial customers:
Residential - 0; Commercial - 3; lndustrial - O
This response is made by Ms. WIde, Office Manager, hgle Water Company.
REQUEST NO. 17: Please provide an estimate of the amount of water pumped during the
system peak hour.
Response for Rquest No. lZ
The highest usage for 2015 was on August 14,2015 and was 5r405rOO c.f.
This response is made by Robert V. DeShazo, Jr" President, Eagle Water Company.
REQUEST NO.l8: Please describe the system used to deliver water from the 90,000 gallon
storage tank at Well House No. 2 into the system. Include horse power, rated capacity, and
discharge pressure for each pump.
Response for Request No. l8:
Response provided by Robert V. DeShazo, Jr. to PUC engineer Mike Morrison during
his field site visit to Eagle Water on December 15, 2015.
REQUEST NO. 19: Please provide a current system map, with the locations and sizes of all
distribution pipes, pumps, wells, pressure reducing/sustaining valves, boosters and storage
facilities. Please provide the power [horsepowerJ and capacity [gpmJ for each pump and
booster.
EAGLE WATER COMPANY'S
RESPONSES TO
FIRST PRODUCTTON REQUEST
OF COMMISSION STAFF
DECEMBER 18,2015
Rsponse for Request No. 19:
a. Enclosed with this response is a PDF of a Map created by MTC, lnc. in 2OO7 of
Eagle Water Company's water lines and well houses. Kevin McGrthy, a contract engineer for
the Company, is currently working on an updated system map and Eagle Water Company will
make that map available to the PUC as soon as it is completed.
Mr. McGrthy may be reached at:
KM Engineering, LLP
9233West State Street
Boise, ID 83714
Tel.[phone]
Fax[phone]
kevin @ kmengllp.conr
b. Well e pump power and capacity:
. Well I - 50 Hp,550 gpm
. Well 2 - 50 Hp, 470 gpm
. Well 4 - 300 Hp,3045 gpm
. Wells 6,7, 8 - 25O Hp, 2718 gpm
o Pump I - 100 Hp, gpm is not measured. Pump 2 -100 Hp, gpm is not measured
o Pump 3 - 25 Hp, gpm not measured
o Pump '1- 100 hp, gpm not measured.
This response is made by Robert V. DeShazo, fr., President, Eagle Water Company.
REQUEST NO. 20: Please provide pump curves for all pumps and boosters associated with
Wells 7 and 8.
Response for Rquest No. 20:
Pump curve calculations for Wells 7 and 8 were performed by Lee Evans of Priest
Electric. Please see attached RFP #20.
This response is made by Lee Evans from Priest Electric.Mr. Evans made be reached at:
Priest Electric
+l2W Simplot Blvd
Caldwell lD 83505; Tel. [phone]
EAGLE WATER COMPANY'S
RESPONSES TO
FTRST PRODUCTTON REQUEST
OF COMMISSION STAFF
l0 DECEMBER 18,2015
DATED at Boise, Idaho, this lSth day of December 2015.
Molly O'Leary
EAGLE WATER COMPANYS
RESPONSES TO
FTRST PRODUCTTON REQUEST
OF COMMISSION STAFF
DECEMBER l8,2ol5