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HomeMy WebLinkAbout20230915AVU to Staff 96-98_100_102.pdfFALLS WATER CO., INC.’S RESPONSES TO THE SIXTH PRODUCTION REQUEST OF THE COMMISSION STAFF PAGE 1 OF 2 Preston N. Carter, ISB No. 8462 Morgan D. Goodin, ISB No. 11184 GIVENS PURSLEY LLP 601 West Bannock Street P.O. Box 2720 Boise, Idaho 83701-2720 Office: (208) 388-1200 Fax: (208) 388-1300 prestoncarter@givenspursley.com morgangoodin@givenspursley.com [16944936_1.docx] Attorneys for Falls Water Co., Inc. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF FALLS WATER CO., INC. FOR THE AUTHORITY TO INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO Case No. FLS-W-23-01 FALLS WATER CO., INC.’S RESPONSES TO THE SIXTH PRODUCTION REQUEST OF THE COMMISSION STAFF Falls Water Co., Inc., (“Falls Water,” “Applicant,” or “Company”) in response to the Sixth Production Request of the Commission Staff to Falls Water Co., Inc. dated August 28, 2023, submits the following responses. 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 September 15, 2023. GIVENS PURSLEY LLP By Preston N. Carter Morgan D. Goodin Attorneys for Falls Water Co., Inc. RECEIVED Friday, September 15, 2023 1:32:43 PM IDAHO PUBLIC UTILITIES COMMISSION FALLS WATER CO., INC.’S RESPONSES TO THE SIXTH PRODUCTION REQUEST OF THE COMMISSION STAFF PAGE 2 OF 2 CERTIFICATE OF SERVICE I hereby certify that on September 15, 2023, I caused to be served a true and correct copy of the foregoing document to the person(s) listed below by the method indicated: Jan Noriyuki, Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg. 8, Suite 201-A Boise, ID 83714 jan.noriyuki@puc.idaho.gov _________________________________________ Morgan D. Goodin Rates & Regulatory Affairs FLS-W-23-01 In the Matter of Falls Water Company's Application for Authority to Increase its Rates and Charges for Water Service Data Request Response Preparer/Responding Witness: Scott Bruce General Manager, Falls Water Company, Inc (208) 522-1300 Request No.: FLS-W-23-01 IPUC DR 96 Please provide a detailed explanation of the job responsibilities for the seasonal employee. Please include in your response the actual duration of employment for the seasonal employee and whether the position was filled in 2021, 2022 and 2023. Response: The seasonal employee has the following duties:  Inspects every water meter yearly for overgrown grass around meter lid, leaks in meter pit, broken ring/lids, etc.  Searches out meter lids or shut-off valves, raising meter lids to grade and landscaping projects.  Well lot and building grounds keeper – lawn mowing, weed eating, cleans up garbage,  Performs as a crew member, assisting skilled Water Distribution Operators in installing, renewing, maintaining, and repairing water services and main lines.  Operates a variety of hand tools and small power equipment, such as a jack hammer, compressor, compaction machine, tapping machine, pipe saw, chain saw; cleans tools and equipment to ensure proper working condition. The seasonal employee position is expected to last from May 1st through October 31st each year. The Company began searching to fill the position in March of 2023. The opening was filled on June 12, 2023. The position proved to be more difficult to fill than expected. Many of the applicants would either not respond to requests for job interviews and many that did set up interviews failed to show up for the interview. The applicant hired was a high school graduate that had just graduated. He worked through the summer and left on September 1, 2023. He had another commitment after that date. FLS-W-23-01 IPUC Staff DR 96 Page 1 of 2 Ideally the Company would want someone who is able to work from May through October on an annual basis. The applicant pool, this year, did not work out that way. The Company had not sought anyone prior to 2023 to fill this position. FLS-W-23-01 IPUC Staff DR 96 Page 2 of 2 Rates & Regulatory Affairs FLS-W-23-01 In the Matter of Falls Water Company's Application for Authority to Increase its Rates and Charges for Water Service Data Request Response Preparer/Responding Witness: Scott Bruce General Manager, Falls Water Company, Inc (208) 522-1300 Request No.: FLS-W-23-01 IPUC DR 97 Please provide the most recent Wage and Salary Study conducted by Falls Water. Response: The Company uses a variety of sources to determine market rate for salaries. The most recent AWWA salary survey is 2021, which informed the wages and salaries for the Company employees. The Salary Survey based on the AWWA salary survey, escalated by 3% annually to 2023 is provided as Confidential FLS-W-23-01 IPUC DR 97 Attachment 1. Additionally, the Company reviews neighboring entities within the local market for similar positions. The City of Idaho Falls Grade and Step with Job Titles 2020-2021 is provided as FLS-W-23-01 IPUC DR 97 Attachment 2 and the Grade and Step 2022- 2023 is provided as FLS-W-23-01 IPUC DR 97 Attachment 3. The data are published on the City website and the Company believe they provide an important comparator due to the proximity and comparable jobs. Finally, the Bureau of Labor Statistics publishes data of similar job titles by geographic area. This is another valuable data point for comparable jobs. The most recent BLS data salaries for comparable positions in Idaho is provided as FLS-W-23-01 IPUC DR 97 Attachment 4. FLS-W-23-01 IPUC Staff DR 97 Page 1 of 1 Rates & Regulatory Affairs FLS-W-23-01 In the Matter of Falls Water Company's Application for Authority to Increase its Rates and Charges for Water Service Data Request Response Preparer/Responding Witness: Jeremy Aird Director of Accounting and Finance, NW Natural Water (503)-610-7927 Request No.: FLS-W-23-01 IPUC DR 98 Please explain the Company's methodology for capitalizing labor costs. Response: Please refer to FLS-W-23-01 IPUC DR 74 for the discussion of Falls Water’s capitalization policy. The same application would apply to labor hours worked related to a capital project. The costs capitalized would include labor plus an estimate for payroll taxes and workers compensation costs related to the hours worked on the capital project. FLS-W-23-01 IPUC Staff DR 98 Page 1 of 1 Rates & Regulatory Affairs FLS-W-23-01 In the Matter of Falls Water Company's Application for Authority to Increase its Rates and Charges for Water Service Data Request Response Preparer/Responding Witness: Scott Bruce General Manager, Falls Water Company, Inc (208) 522-1300 Request No.: FLS-W-23-01 IPUC DR 100 Please describe the typical scope of work conducted and initially funded by the Company to connect/hookup a new customer in the: a. Taylor Mountain ("TM") system; b. Morning View ("MV") system; and c. Falls Water ("FW") system. Response: The Company funded work and materials is consistent among the three systems. The cost to connect/hookup a new customer in all of the water systems currently owned by the Company includes: The installation of a meter A radio transmitter at each new customer site Labor cost of $50.00 per installation site The developer installs the service line and meter barrel on each lot as the main line infrastructure is installed for the development. The home builder is responsible to connect the stub out from the meter barrel to the new home. FLS-W-23-01 IPUC Staff DR 100 Page 1 of 1 Rates & Regulatory Affairs FLS-W-23-01 In the Matter of Falls Water Company's Application for Authority to Increase its Rates and Charges for Water Service Data Request Response Preparer/Responding Witness: Scott Bruce General Manager, Falls Water Company, Inc (208) 522-1300 Request No.: FLS-W-23-01 IPUC DR 102 Please explain why the Company has not included any applicable "Hookup Charges" for MV customers when a new service is connected to the system for the first time. Also, please explain how the Company recovers the cost related to new MV customer hookups. Response: The Morning View water system did not have a tariffed “Hookup Charge” at the time the system was acquired by the Company (FLS-W-20-04). At the time the Company acquired the system, it had 21 vacant lots out of 147 buildable lots; the system had 10 vacant lots in May 2023 when FLS-W-23-01 was filed. The Company, by asking to combine the tariffs for the three systems, expects to have all three systems using the same Hookup Charge tariff. (See Case No. FLS-W-23-01 Application Attachment 1 Proposed Tariff – Clean and Attachment 2 Proposed Tariff – Redline.) For this reason, a separate hook-up fee for Morning View was not requested. However, if Staff recommends, and the Commission approves, a non-consolidated tariff, the Company would support a Hookup Charge for all the systems, including Morning View. The Company has installed meters in new construction connections and put the meters into its rate base due to the lack of a hook-up tariff. These meters are being depreciated using a 35-year straight line method as shown in Attachment G of Staff Comments in Case No. MNV-W-19-01. FLS-W-23-01 IPUC Staff DR 102 Page 1 of 1