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Home My WebLink About20221103Gem State to Staff 54-62.pdfllW lloturof Rates & Regulatory Affairs GSW-W-22-01 iTECf IVED ?$7? HOV -3 PH t: h I iDi-iit.j PUBLIc , i i[.t i tF_s c0l,{f{lssloN .o 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 54 54. Please provide supporting documentiation for all contract labor services expenses for the test year. Please include invoices, work papers, and a description of the services received. Resoonse: The contract services accounts in the Exhibit 2 Proforma of the rate case filing include: Rate Case Account Description Amount 635 $1,698 These items are comprised of several QuickBook accounts (summarized below) and supporting documentation of contracted labor for the test year is provided below and in the referenced attachments: Account No. 631-34 Contracted Services - Professional Shared Services NWN of $42,534 does not include contracted labor expenses. The costs included are shared corporate overhead costs. See'Shared N\ N' tab on GSW-W-22-01 DR 54 Attachment 1 for line items details and GSW-W-22- 01 DR 12tor additional explanation. a Contract Services - Water Testing a GSW.W-22.01 IPUC DR 54 NWN Response Page2ol2 Other Business Expense: Professional Contract & Fees of $19,375. See Attachment GSW-W-22-01 DR 54 Attachment 1; no contract labor appears in this account. Other Business Expense Vendor of $10,940. See GSW-W-22-01 DR 54 Attachment 1 and GSW-W-22-01 DR 54 Attachments 2 - 4 for labor services in this account. Account No. 635 Contracted Services - Water Testino Other Business Expense: Laboratory Fees of $1,698. See GSW-W-22-01DR 54 Attachment 1 for details of laboratory fees; no contract labor appears in this account. Account No. 636 Contracted Services - Other Other Business Expense of $4,827. See GSW-W-22-01DR 54 Attachment 1, no contract labor appears in this account. Other Business Expense: Locate Services of $617. See GSW-W-22-01 DR 54 Attachment 1, no contract labor for this locate service. Other Business Expense: Covid-19 Expenses of $150. See GSW-W-22-01 DR 54 Attachment 1, no contract labor appears in this account. Deferred Covid Related Expenses of $350. See GSW-W-22-01DR 54 Attachment 1, no contract labor appears in this account. Amortization Expense of $3,204. See GSW-W-22-O1 DR 54 Attachment 1, no contract labor appears in this account. a a a a a a o -^(} *, iloturof 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 55 55. Please provide supporting documentiation for every expense booked to the miscellaneous expense account for the test year. Please include invoices, workpapers, journal entries, and any additional documentiation to support these expenses. Resoonse: The transaction level details of the Account 675 Miscellaneous Expense are provided in GSW-W-22-01 IPUC DR 55 Aftachment 1. W0,749.32 Joumal Allocation of overhead costs to Pelican Point (PP) was inadvertently recorded twice. See GSW.W.22.O1 IPUC DR 55 Attachment 2 (first charge is shown on rows 4-67 and the duplicate is shorn on rows 70 - 133). The duplicate charge was then reversed against account 699 instead of all the credits in the ioumal entry. ($6,538.28) Deposit Largely offset from Acct. 426 below lnvoice & JE Bank, merchant services fees, and vendor fees net of atlocation to Entry $7,080.36 G€llilJt,!& X IFU.6ER ffi .!flS{rMqrilsg o l{W lloturof Rates & Regulatory Affairs GSW-W-22-01 Gem State Water Company, LLC Application for an Order Authorizing an lncrease in its Rates and Charges for Water Service Data Request Resoonse Request No.: GSW-W-22-01 IPUC DR 56 56. Following up to Production Request No. 13, please provide job descriptions for all positions at the Company. Resoonse: Please see the following referenced attachments for job descriptions for all positions at the Company. General Manager GSW-W-22-01 IPUC DR 56 Attachment 1 Field Manager GSW-W-22-01 IPUC DR 56 Attachment 2 Operator GS$W-22-01 IPUC DR 56 Aftachment 4 Billing Administrator GSW-W-22-01 IPUC DR 56 Attachment 3 Seasonal GSW-W-22-01 IPUC DR 56 Aftachment 5 Office Assistant GSW-W-22-01 IPUC DR 56 Attachment 6 Position Reference .o llW lloturof 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 Reouest No.: GSW-W-22-01 IPUC DR 57 57. Please provide any matrix or methodologies the Company used to determine the appropriate number and compensation of employees. Please include any labor studies performed, whether internally or extemally. Resoonse: The Company bases the appropriate number of employees on workload and customer needs. Some factors that impact the appropriate number of employees include the number of customers, number of tariffs and water systems to manage and distance between systems, age of systems and new capital and IT investments. Compensation of employees is informed by AWWA surveys and local employment conditions. Response to GSW-W-22-01 IPUC DR 16 provides more detailof market salary data that is used to inform compensation. lllfl lloturol' 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 58 58. Please provide a breakdown showing the percentage and dollar amount of labor expense allocated to Gem State (both capitalized and expensed), Pelican Point, and GSl, for each staff position. Resoonse: The breakdown for percentage and dollar amounts for labor expense for Gem State, Pelican Point and GSW are provided for each statf member in Confidential GSW-W-22- 01 IPUC DR 58 Attachment 1. c, tllY llqturof 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 59 59. Please provide copies of the Company's State lncome Tax return for 2021 with supporting schedules and worksheets. Response: Please see proforma State lncome Tax retum for 2021in Confidential GSW-W-22-01 IPUC DR 59 Attachment 1. Taxpayer identification theft is a serious issue these days. Please consider the attachment a CONFIDENTIAL document. (r ,^(N) ttw lloturorv 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 60 60. Please provide copies of the Company's Federal lncome Tax return for 2021 with supporting schedules and worksheets. Response: Please see proforma Federal lncome Tax retum tor 2021 in Confidential GSW-W-22-01 IPUC DR 60 Attachment 1. Taxpayer identification theft is a serious issue these days. Please consider the attachment a CONFIDENTIAL document. tlW Nstursl' 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 61 61. Please provide a schedule of deferred taxes for the last three years Response: Please see below schedule: o Phnt lNet of Accum, CwlP, CIACI 2019 Year End 2020 Year End 2021 Year End (Rate case Fnlnt) 2021 w/ Test YearAdj Net Book Plant Net Tax Plant Difference s 489,816 s @2,ffi 834,413 s 9sz(no 1,1829ss S 1,303,454 1,326,683 1,308862 6.00% 27.@% 2L.Wo 25.74% ldaho State corporate income tax rate Federal benefits of state defened Federal corporate income tax rate Defened Tax Asset (Llabl[ty] LLz,7U 6,767 lL,42tl 23,685 722,587 z3ss (1,s4s) 25,743 115,469 6,928 (1,4ss) 24,248 lL7,82Ll (ilrs) 13,7421 225 s 29,031 $31,554 s 29,722 5 (4s871 Note that the deferred tax balances have been recalculated to be consistent with the rate case filing, removing deferred tax movements related to items such as Goodwill L,{p xw lloturol' 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 62 62. Pfease provide supporting documentation for the truck purchased in 2022. Please include in your response a copy of the invoice, the year, make and model, mileage, and fuel type. Also include the intended use of the asset, estimated yearly mileage, and primary users. Please include any cost benefit analysis for the truck. Resoonse: See GSW-W-22-01 IPUC DR 62 Attachment I lor the invoice for the 2022lruck purchase in the amount of $85,746.94. The original estimate of $87,149.64 used in the application is included as GSW-W-22-01 IPUC DR 62 Aftachment 2. The truck is diesel fuel and a 2019 Ford F-350 with 36,095 miles. The considerations that went into the decision to purchase the truck were provided in response to GSW-W-22-01 IPUC DR 3 and reflect the management decision to own the utility truck rather than rely on employee reimbursements.