20191011Falls Water to Staff 1-4.pdf

ldaho Public Utilities Commission
Office of the SecretaryRECEIVED
ocr I I zotg
Boise, ldaho
Preston N. Carter (ISB No. 8462)
Charlie S. Baser (ISB No. 10884)
Givens Pursley LLP
601 W. Bannock St.
Boise,lD 83702
Telephone: [phone]
Facsimile: (208) 388-1 300
prestoncarter(O qivenspursley. com
charliebaser@,si venspursl ey. com
14833016_l.docx [3988-5]
Attorneys for Falls Water Co., Inc.
IN THE MATTER OF THE
APPLICATION OF FALLS WATER
CO., INC. FOR APPROVAL OF
ACQUISITION OF THE ASSETS OF
THE WATER BUSINESS OF TAYLOR
MOUNTAIN WATER AND SEWER
DISTRICT
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
Case No. FLS-W-19-01
FALLS WATER CO., INC.'S
RESPONSES TO FIRST
PRODUCTION REQUEST OF THE
COMMISSION STAFF
COMES NOW Falls Water Co., Inc. ("Falls Water") and in response to the First
Production Request of the Commission Staffto Falls Water, dated September 27,20lg,herewith
submits its Responses.
DATED: October 14, 2019.
GIVENS PURSLEY LLP
/g-^,.
Preston N. Carter
Charlie S. Baser
Givens Pursley LLP
Attorneys for Falls Water Company
FALLS WATER CO., INC.'S RESPONSES TO FIRST PRODUCTION REQUEST OF
THECOMMISSIONSTAFF. I
CERTIFICATE OF SERVICE
I certify that on agtobct_l4,2019, a true and correct copy of FALLS WATER CO.,
INC.'S RESPONSES TO FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
was served upon all parties of record in this proceeding via the manner indicated below:
Commission Staff
Diane Hanian, Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise,ID 83714
Di [e-mail]. eov
Matt Hunter
Deputy Attomey General
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise, ID 83714
[e-mail]. sov
Electronic Mail
FALLS WATER CO., INC.'S RESPONSES TO FIRST PRODUCTION REQUEST OF
THE COMMISSION STAFF - 2
Electronic mail
t, ,* Noturot'
Rates & Regulatory Affairs
FLS-W-19-01
Taylor Mountain Acquisition
Data Request Response
Request No.: FLS-W-19-01 IPUC DR 1
Please provide a legal description of the property that the Company proposes to add to
the lega! description in CPCN No. 236.
Response:
A written legal description of the property that Falls Water proposes to add to the legal
description in CPCN No. 236 and a plotted map showing that description are provided in
IPUC DR 1 Attachments 1 and 2, respectively. ln connection with this response and its
response to IPUC DR 2, Falls Water wil! be filing an amended Exhibit 6 to Mr.
Palfreyman's testimony, which is a corrected service area map and a legaldescription.
FLS.W-19.01 IPUC DR 1
FW Response
Page 1 of 1
LEGAL DESCRIPTION
TAYLOR MOUNTAIN WATER AND SEWER DISTRICT
A parcelof land being parts of Sections 2L,27, and 28, Township 1 North, Range 38 East, Boise
Meridian, Bonneville County, Idaho described as follows;
Beginning at the southeast corner of said Section 28 and running thence N89'41'21"W along the south
section line, 2625.49 feet to the south % Corner of Section 28; thence N00"25'42"E along the N-S Center
Section Line, 2645.37 feet to the Center of Section 28; thence N89"25'17"W along the E-W Center
Section Line, 1325.46 feet to the southwest corner of the SE% NW%; thence N00"09'13"E along the west
line of the East% of the NW%,265t.06 feet to a point on the north line of Section 28 also being the
northwest corner of the NE% NW%; thence N89'11'10"W along the north section line, 82.23 feet; thence
departing north section line N01"56'45"E, 1314.33 feet to a point on the north line of the South % of
Section 21; thence 589"L7'27"E along said north line, 4066.46 feet to the northeast corner of the
SE % SE % of said Section 21; thence S00'31'14"W along the east line of said Section 2t, L32!.52 feet to
the southeast corner of said Section 21 also being the northeast corner of Section 28; thence
S00"58'28"W along the east Section Line of said Section 28, t3L6.97 feet; thence departing east section
line N89"45'19"E, 1305.24 feet to the center of the NW % of Section 27; thence 500'51'31"W,2640.3O
feet to the center of the SW % of Section 27; thence N89'56'42"W, L3L0.46 feet to a point on the east
line of Section 28; thence S00"58'28"W along said east line L3L6.97 feet to the POINT OF BEGINING.
Parcel contains 504.90 acres
FLS.W-19-01 IPUC DR 1
FW Response
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<fr NW Noturql'
Rates & Regulatory Affairs
FLS-W-19,01
Taylor Mountain Acquisition
Data Request Response
Request No.: FLS-W-19-01 IPUC DR 2
Exhibit No. 6 of Palfreyman's direct testimony provides a map showing the "Application
POU." One parcel, the SW % of NE lq sec 29 Township 1 North Range 38 East, does
not currently appear to be connected to the existing water system. Does the Company
plan to connect this parcel to the Taylor Mountain Water system? If so, how will this
parcel be connected, and what capital improvements wil! be necessary to make this
connection?
Response:
The Company will be filing a corrected Exhibit No. 6 of Mr. Palfreyman's direct
testimony. The parcel identified in this request, the SW % of NE lc sec 29 Township 1
North Range 38 East (the "Parcel"), is not served by the Taylor Mountain Water and
Sewer District ("TMWSD") and is not within the service territory boundary of the
TMWSD. The Parcelwas identified in error. Please also see the Company's response
to FLS-W-19-01 IPUC DR 1.
FLS-W-19.01 IPUC DR 2
FW Response
Page 1 of 1
{f xt }toturot'
Rates & Regulatory Affairs
FLS-W-19-01
Taylor Mountain Acquisition
Data Request Response
Request No.: FLS-W-19-01 IPUC DR 3
For Taylor Mountain, please provide allfinancial statements prepared for estimating the
revenue requirement. lf not clearly labeled in the workpapers, please provide
assumptions on the cost of capital and annual (or quarterly, if applicable) expected
revenue and costs, including plant in service, book depreciation, tax depreciation,
income taxes, deferred taxes, property taxes, and other items typically included in a
discounted cash flow analysis.
Response:
Falls Water intends to keep the existing tariff structure until a new rate case is
completed. Cost of capita! and structure are assumed to be similar to Falls Water
lncluded below are the current projections of 2019 revenues and historical costs along
with the net undepreciated water system asset value is $29,338.
FLS.W.19.O1 IPUC DR 3
FW Response
Page 1 of2
Expected 2019 Revenue
Water Base Rate
Water Usage Rate
Water New Connection Fees
Total Revenues
5 g&4m
5 22,M
s 4200
@5201 m* L2* 160 cu sto me rs
@S14o0*3 new connects
S 6s,ooo
2018Actual Costs
Purchased power, other utilities
Contractua I se rvi ces (acco u nti ng, I egal, etc)
Materials & Repairs
lnsurance
Property tax
Other
Total Costs
s
S
S
S
S
s
lt,625)
15,438)
41,899)
(638)
(330)
(4o4)
s (70,333)
Depreciation s (4341)
Operation !ncome s (9,574)
Net PIant:
Date Useful life Purchase
7 5 9,286
10 s 13,510
10 s 9,581
10 s 5,950
Prev. Dep 2019 DeprAcc. Depr
s (2,s8s) 5 0,327l' s (4311)
s (1,81s) s (1,351) s (3,175)s (es8) s (ess) s (1,e16)s s (ogs)s (6e6)
Net Value
5 4,97s
S 10,434
s 7,565
5 6,2il
Water Pump 1
Water Pump 2
Well Upgrades
2 Flow meters
6/2e/2oL6
sl3Ll2OL7
7/7912OL8
e/7l20Le
Total Net PP&E s 29,338
FLS.W-19.01 IPUC DR 3
FW Response
Page 2 of 2
{l ** Noturqr
Rates & Regulatory Affairs
FLS-W-19-01
Taylor Mountain Acquisition
Data Request Response
Request No.: FLS-W-19-01 IPUC DR 4
for tiilor Mountain, please provide a listing of all plant in service, along with the in-
service dates, original costs, and depreciation rates.
Response:
Date Usefullife Purchase Prev. Dep 2019DeprAcc. Depr NetValue
7 5 e,286 S(2,98s) 5$,327l. 5(4311) 5 4,97s
10 s13,610 s(1,815) s(1,351) s(3,176) srO,+Sq
10 s e,s81 s (9s8) s (ss8) s(1,e16) 5 7,66s
10s6,e6o s s (5e5) s (5e6) s6,264
Water Pump 1
Water Pump 2
Well Upgrades
2 Flow meters
6/2e/2OL6
sl3L/2077
7lL9(2OL8
e/7/2OLe
Total Net PP&E $ 29,338
FLS-W-19-01 IPUC DR 4
FW Response
Page 1 of 1
Expected 2019 Revenue
water Base Rate
Water Usage Rate
Water New Connection Fees
Total Revenues
2018 Actual Costs
Purchased power, other utilities
Contractual services (accounting, legal, etc)
Materials & Repairs
lnsurance
Property tax
Other
Total Costs
Depreciation
Operation lncome
S 38,400
5 22,4OO
$ 4,200
@520 I m* L2* 160 custo me rs
@S1400*3 new connects
S 65,000
s (11,625)
s (15,438)
s (41,899)
s (638)
s (330)
s (404)
Water Pump 1
Water Pump 2
WellUpgrades
2 Flow meters
Total Net PP&E
s (70,333)
s (4,341)
S (9,674)
Date Useful Iife Purchase Prev. Dep 2019 Depr Acc. Depr Net Value
7 s 9,286 s(2,98s) 5$,3271 s(4,311) 5 4,97s
10 s13,510 s (1,81s) s (1,351) s (3,176) 5LO,434
10se,s81 s (es8) s (es8) s(1,e15) s7,66s10s5,s5os s (6s6) s (6e6) 56,26q
6/2el2OL6
sl3L/2OL7
7/te/zoLg
elTl2OLe
s 29,338