20220907Gem State to Staff 1-18.pdf

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Rates & Regutatory Affairc ir:j-', t *"ii']^.*
GSW-W-22-O1 il:i.:i;,- . i]*l*l,iisslol'i
Gem State Water Company, LLC Application for an OrderAuthorizing an lncrease in its
Rates and Charges forWater Service
Data Request Reeoonse
Requeet No.: GSW-W-22-01 IPUC DR 1
1. Please provide a copy of or access to the Company's QuickBooks file.
t;
Reeoonse:
Please see the general ledger extracted as GSW-W-22-01 IPUC DR I Attachment 1.
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Request Response
Request No.: GSW-W-22-01 IPUC DR 2
2: Please provide a copy of the invoice for the purchase of the truck included in the
Company's Application.
Response:
At the time of the Application the truck had not yet been purchased. The quote included
in the Application for $87,150 for the 2019 Ford F-350 is attached as GSW-W-22-01
IPUC DR 2 Aftachment 1.
Since the Application was filed the truck has been acquired and the invoice for the truck
purchase was $85,747 for the 2019 Ford F-350 and is aftached as GSW-W-22-01 IPUC
DR 2 Attachment 2.
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Rates & Regulatory Affairc
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Request Response
Request No.: GSW-W-22-01 IPUC DR 3
3: Please provide the supporting documentation including any cost benefit analysis
used by the Company justifying the purchase of the truck.
Response:
Multiple considerations went into the decision to purchase the truck, including
cosUbenefit and the risk of employee reimbursement for utility vehicle. The then-current
practice of vehicle reimbursement rather than utility ownership of vehicles provided risk
to the utility and was not sustainable long term. The risks to utility operations include:
. Relying on employee to maintain personal vehicles, which is used in utility
operations. Succession planning if employee leaves may be more challenging if replacement
needs to own a vehicle suitable for utility useo Limit fleet if the employee is not available during vacation or sick time
The F350 purchase allows Gem State to mitigate these risks associated with reliance
on employee vehicles for utility operations. The decision to acquire the heavier duty
truck was informed by the fact there is no shop for tools and equipment or other options
for heavier hauling. The truck will be a "shop on wheels," which requires a heavier duty
payload and is able to haul portable generator (8,000 lbs), trash pumps, tools and
equipment, well pumps and motors, boosters, electric equipment, and large pipes,
valves and hydrants.
The cost of the capital addition was included in the Rate Base calculation, which
increases Rate Base by $87,150 in the Proforma, or $22,388 increase in annual
revenue requirement. The vehicle reimbursement was reduced by $5,334 for a net
impact of $16,975.
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Request Response
Request No.: GSW-W-22-01 IPUC DR 4
4: Please provide the supporting documentation for the increase in the fuel cost as
shown in Exhibit No. 2 (D).
Resoonse:
Exhibit No. 2 (D) Account No. 650 - Transportation Expense was $1 1,718 for Gem
State in 2021 and adjusted to $6,572 in the Pro Forma.
Please see the attached worksheet (GSW-W-22-01 IPUC DR 4 Attachment 1) for
further details.
Description Amount Comments
Account No.650
Transoortation Expense
$11,718 2021 TestYear
Troy Hoffman $188 lncremental expense anticipated to
account for partial year acquisition.
Vehicle Reimbursement ($10,668)Vehicle reimbursement in the test
year of 58.5 cents per mile removed
in Pro Forma due to vehicle
acouisition
lncreased Fuel,
Maintenance, lnsurance, and
Reoistration
$5,334 lncreased operating expenses for
owning, rather than reimbursing
estimated at 28 cents oer mile.
Proforma for Account No.
650 Transportation Expense
$6,572
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Reouest Response
Request No.: GSW-W-22-01 IPUC DR 5
5: Please provide the supporting documentation showing the number of meters planned
on being replaced, dates of replacement, and costs of each replacement.
Response:
Exhibit No. 1 (B) Rate Base addition in Account No.334 of $60,108 detailcan be found
on the aftached invoice, GSW-W-22-01 IPUC DR 5 Attachment 1. The cost is for 147
meters on the Troy Hoffman system at $348 per meter for $51,156 meter costs and
additional AMR and leak detection set up costs of $8,952.
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Rates & Regulatory Affairc
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Request Response
Reouest No.: GSW-W-22-01 IPUC DR 6
6: Please provide the supporting documentation for the expiring lease amount as shown
in Exhibit No. 2 (D); Account 641-42 Renta! property & Equipment.
Response:
The current lease for office space expires September 30,2022 (see GSW-W-22-01
IPUC DR 6 Attachment 1).
At the time of the filing of this general rate case on July 21 ,2022, Gem State Water had
not been able to secure office space and estimates ranged from $3,000 to $6,000 per
month for suitable accommodations. The office space estimates are attached as GSW-
W-22-O1 IPUC DR 6 Attachment 2.
Effective August 3,2022, Gem State Water has secured a lease for $1 ,716 per month
starting in mid-August2022, escalating to $1,768 and $1,820 in September 2023 and
2024, respectively, plus HOA fees (see GSW-W-22-01 IPUC DR 6 Attachment 3).
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an OrderAuthorizing an lncrease in its
Rates and Charges for Water Service
Data Requeet Resoonse
Reoueet No.: GSW-W-22-01 IPUC DR 7
7: Please provide copies of all bids reeived forthe lease of the new office spaoe and a
copy of the signed lease agreement.
Resoonse:
Please see the Company's response, including attachments, to GSW-IA/-ZZ-U IPUC
DR 6.
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Request Resoonse
Request No.: GSW-W-22-01 IPUC DR 8
8: For each well that the Company owns, please provide a list of all water tests required,
the frequency of each test, and the cost of each test.
Response:
The Company regularly performs required testing on allwells in service. The table
below and GSW-W-22-O1IPUC Attachments 1- 6 provide the detail on the required
tests, frequency, and costs.
Systcm DCrLnrtbn TcctlRrqufucd/Fr.quen y Coit
Spirit Lake East
Lynnwood
Bar Clrcle "S"
Bar Circle "S"
Bar Circle "S"
Diamond Bar
Diamond Bar
Bitterroot
Bitterroot
Happy Valley
Troy Hoffman
9112 W Uberty Drive
Trinity [ane
KC Circle "S" Trail fl2
KC Garwood Rd
KC Circle'S" Trail #3
CD Rodeo Rd
CD Rodeo Rd
25858 N Clagstone Rd
3533 E Brunner Rd
Happy Valley Rd
various - see GSW-W-22-01 IPUC DR8_ Sheet No. 1
various - see GSW-W-22-01 IPUC DR8_ Sheet No. 1
various - see GSW-W-22-O1 IPUC DR8_ Sheet No. 1
various - see GSW-W-22-01 IPUC DR8_ Sheet No. 1
various - see GSW-W-224I IPUC DR8_ Sheet No. 1
varioui - see GSW-W-22-01 IPUC DR8 Sheet No. 1
New
various - see GSW-W-22-01 IPUC DR8_ Sheet No. 1
various - see GSW-W-22-01 IPUC DR8_ Sheet No. 1
various - see GSW-W-22-01 IPUC DR8_ Sheet No. 1
various - see GSW-W-22-01 IPUC DR8 Sheet No. 1
GSW-W-22-01 IPUC DR8_ Sheet No. 2 - 6
GSW-W-22-01 IPUC DR8_ Sheet No. 2 - 6
GSW-W-22-01 IPUC OR8_Sheet No. 2 - 6
GSW-W-22-01 IPUC DR8_ Sheet No. 2 - 6
GSW-W-22-01 IPUC DR8_ Sheet No. 2 - 5
GSW-W-22-01 IPUC DR8_ Sheet No. 2 - 5
GSW-W-22-01 IPUC DR8_ Sheet No. 2 - 6
GSW-W-22-01 IPUC DR8_ Sheet No. 2 - 6
GSW-W-22-01 IPUC DR8_ Sheet No. 2 - 6
GSW-W-22-01 IPUC DR8_ Sheet No. 2 - 6
various - see
various - see
various - see
various - see
various - see
various - see
New
various - see
various - see
various - see
various - see
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Request Response
Request No.: GSW-W-22-01 IPUC DR I
9: For the customers listed in Exhibit No. 5 (A), please provide the meter size for each
customer. Please provide a list of customers that would receive a customer charge for a
larger than one-inch meter. Please include the usage for those customers with
!arger than one-inch meters.
Response:
The attached excelfile (GSW-W-22-01 IPUC DR 9 Aftachment 1) contains the meter
size for each customer. This includes the separate irrigation meters for Diamond Bar
customers. The meter size has been added to column "P'on the excelfile. The
customer list for larger meter customers (i.e., customers that would receive a customer
charge for a larger than one-inch meter) is in the same file on the "2-inch customer list'
tab.
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Reouest Response
Request No.: GSW-W-22-01 ]PUC DR 10
10: Please explain why the Company did not include any fixed charges for meters larger
than one inch in the Company's rate proof in Exhibit No. 5 (A).
Resoonse:
The larger meters were inadvertently not incorporated into the rate proof in Exhibit No. 5
(A). The corrected rate proof for Exhibit No 5 (A) is included in GSW-W-22-01 IPUC DR
9 Attachment 1. The attachment incorporates (1) the larger meters into the rate proof to
calculate the additional revenue associated with the larger meters throughout the Gem
State Water systems; and (2)the Diamond Bar 2-inch irrigation meters, as discussed
further below.
(1) The higher basic charge was partially offset by increased volumes in the
minimum charge. The net impact of not including the higher basic charge, after
accounting for the higher volumes included in the minimum charge, is an
increase in revenue of $3,814.
(2) ln reviewing the meter data, it was discovered that the proposed fixed 2-inch
irrigation meters in the Diamond Bar service area were not included in the
proposed revenue. The impact of the Diamond Bar 2-inch irrigation meters is an
increase in revenue of $42,686.
The fixed charges for larger meters and irritation meters both impact rate design and do
not impact the revenue requirement request. The combined impact of collecting the
higher basic charge and the additional revenue from proposal to charge irrigation
meters is $46,500.
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Reouest Resoonse
Reouest No.: GSW-W-22-01 IPUC DR 11
11: Please provide a list of all capital projects the Company has completed for each
system since purchasing the system. Please include the costs of each project as wel! as
completion dates.
Resoonse:
See GSW-W-22-01 IPUC DR 11 Attachment 1 for a complete list of all capital projects
the Company has completed for each system since purchasing the particular system.
The following is a list of some of the more significant projects (please note that some of
the investments benefit all systems, and are categorized as 'Gem State' as they are a
benefit to all customers, such as Billing software, Rave, and SCADA investments):
o Trov Hoffman system was acquired 2021. SCADA system includes alarms and
remote monitoring controls. Billing software with online access and bill pay.
RAVE alert emergency notification. Master flow meters,147 radio read customer
meters are included in the pro forma adjustment and not yet in the fixed asset
list.o Bitterroot system was acquired 2020. SCADA system at 2 sites includes alarms
and remote monitoring controls. Billing software with online access and bill pay.
RAVE alert emergency notification. Master flow meters, transfer switch, portable
generator to provide backup power generation due to onsite generator failure.
Extensive engineering for system reapproval through the state (previously
disapproved for prior owner) and ongoing facilities plan work for capacity
concerns as required by IDEQ. Back up well pump and motor.. Bar Circle "S' system was acquired in 2019. SCADA system at 2 sites includes
alarms and remote monitoring controls. Billing software with online access and
bill pay. RAVE alert emergency notification. Master flow meters,2 new booster
pumps, facilities plan work for capacity concerns as response to customer
complaints, 3 new pressure tanks.
o Diamond Bar system was acquired in 2019. SCADA system at 2 sites includes
alarms and remote monitoring controls. Billing software with online access and
bill pay. RAVE alert emergency notification. Master flow meters, new upgraded
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GSW.W.22.O1 IPUC DR 11
NWN Response
Page2of 2
booster pumps, new well, new controls, transfer switch for use of portable back
up power generation.
Lynnwood system was acquired in 2019. SCADA system includes alarms and
remote monitoring controls. Billing software with online access and bill pay.
RAVE alert emergency notification. New well pump and motor, mainline move
and extension have been made to improve the system.
Spirit Lake East system was acquired in 2019. SCADA system includes alarms
and remote monitoring controls. Billing software with online access and bill pay.
RAVE alert emergency notification. Purchase of 100 hp back up well pump and
motor assembly and back up booster pump. 200-amp breaker replacement.
Happy Valley system was acquired in 2020. SCADA system includes alarms and
remote monitoring controls. Billing software with online access and bill pay.
RAVE alert emergency notification.
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Request Response
Request No.: GSW-W-22-O1 IPUC DR 12
12: Please describe how the parent company allocates costs to Gem State Water
Please provide a list of all allocated costs from the parent company along with
any supporting documentation for the allocation method used.
Resoonse:
Please see the GSW-W-22-01 IPUC DR 12 Attachment 1 for details of costs and
methodologies of allocations from the parent company to Gem State Water.
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Request Resoonse
Request No.: GSW-W-22-01 IPUC DR 13
13: Please provide the supporting documentation for the allocation of salaries to
Capitalized Labor, Gem State, Pelican Point, and GSl.
Response:
Please see GSW-W-22-01 IPUC DR 13 Attachment 1.
The salaries were allocated to Gem State lnfrastructure (GSl) and capitalized labor
based on historical allocations for the most recent period. The most relevant period
used in the Application was post-acquisition for the Troy Hoffrnan system to fully reflect
the test year period.
The total labor cost for the period from November 2021 -May 2022 was $235,679 and
$6,574, or 3o/o was allocated to Gem State lnfrastructure, and $5,254, or 2o/owas
capitalized labor,
The Iabor costs (salaries, payroll tax, and benefits) for the separate systems within Gem
State and for Pelican Point were allocated on a customer count basis. This results in
the 33% allocation to Pelican Point and the remaining 620/o lo Gem State systems.
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Request Response
Request No.: GSW-W-22-01 IPUC DR 14
14: Please provide the supporting documentation for the insurance benefits for the
Company employees.
Response:
Please see the documents attached to the Company's response to GSW-W-22-01 IPUC
DR 12 for insurance benefits and detail of allocation of benefits to Gem State.
Gem State Water currently has 4 FTE receiving benefits, one of which is through
spouse's coverage because both are employed by Gem State Water. We also have one
open position that we are in the process of filling. Under the current rates that are
renewed annually, the maximum benefit cost for this employee would be
$2,182.451month for medical with an average assumed cost of approximately
$17S/monthly for vision, dental, life, and disability.
Names and birth dates have been redacted for privacy.
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an Increase in its
Rates and Charges for Water Service
Data Reouest Response
Reouest No.: GSW-W-22-01 IPUC DR 15
15: Please provide the number of employees by classification and salary of each
classification of employee currently employed by the Company.
Resoonse:
Confidential GSW-W-22-01lPUC DR 15 Attachment 1 reflects the classification/job title
for each employee employed by Gem State. The City CDA classification and salaries
are listed at : h ttos ://www.cdaid. oro/fi les/H RMater_FY2 1 -22. odf
The table in the confidential attachment reflects the salary and classification/job title for
each employee employed by Gem State. The salaries are allocated to Gem State Water
Company, Gem State lnfrastructure and Pelican Point. So, the FTE on the table below
reflects total employed FTE and not proportion included in the Application.
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Reouest Response
Reouest No.: GSW-W-22-01IPUC DR 16
16: Please provide all analysis and compensation studies supporting the wages for
each employee classification.
Resoonse:
The 2021 American Water Works Association survey results were the basis for salary
placements. The costs were escalated by 3% from the 2021 survey for the 2022 test
year. The Gem State Water Job Title, Survey Name, Survey Job Title, Scope and
Market Data Base Salary are found in Confidential GSW-W-22-01 IPUC DR 16
Attachment 1.
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Reouest Resoonse
Request No.: GSW-W-22-01 IPUC DR 17
17: Please provide a description of the Company's practices for determining
uncollectible debts, including the criteria used in determining when an account
is uncollectible? Please also provide the actual net write-offs for the test year separated
by each water system.
Response:
Gem State would write off a balance as uncollectible when that balance was placed with
collections, in accordance with the Utility Customer Relations Rules IDAPA 31.21.01
process; however, there were no customers subject to collections for non-payment
during 2021 test year.
Gem State's write-off balance to date is $412.63. These charges were incurred in 2020
and written off in January 2021. The accounts that were written off were move
outs/sales where our attempts to collect the debt were returned with no forwarding
information available. We made the determination to write off the balances due to the
lack of information we had on file to provide to a collection agency. A report detailing
these write offs is attached (customer identiffing information has been redacted for
security purposes).
Diamond Bar - $34.88
BarCircleS-$175.46
Spirit Lake East -$202.29
GSW-W.22.01 IPUC DR 17
NV\N Response
Page2ot2
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Rates & Regulatory Affairs
GSW-W-22-01
Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its
Rates and Charges for Water Service
Data Request Response
Request No.: GSW-W-22-01 IPUC DR'18
18: Please provide a list of any events that occurred during the test year that may have
caused infrequent expense levels. Please provide a narrative on how these
events affected the Company's operating expenses (for example loss of power, storm
damage or other extreme weather conditions, etc.).
Response:
Loss of power due planned or unplanned outages and weather events typically impact
utility service and operations. The events that occurred in202'l are typicalof what
would be expected at Gem State in a normalyear.