20150520Staff 1-28 to Schweitzer.pdf

NEIL PRICE
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 6864
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
IN THE MATTER OF THE APPLICATION OF
SCHWEITZER BASIN WATER LLC FOR A
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY.
CASE NO. SCH.W-15.01
FIRST PRODUCTION
REQUEST OF THE
COMMISSION STAFF TO
SCHWEITZER BASIN WATER
LLC
h0
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
The Staff of the Idaho Public Utilities Commission, by and through its attorney of record,
Neil Price, Deputy Attorney General, requests that Schweitzer Basin Water LLC (Compmy,
Schweitzer Water) provide the following documents and information as soon as possible, but no
later than WEDNESDAY, JUNE 10,2015.
This Production Request is to be considered as continuing, and the Company is requested
to provide, by way of supplementary responses, additional documents that it or any person acting
on its behalf may later obtain that will augment the documents or information produced.
Please provide answers to each question, supporting workpapers that provide detail or are
the source of information used in calculations, and the name, job title and telephone number of
the person preparing the documents. Please identify the name, job title, location and telephone
number of the record holder.
FIRST PRODUCTION REQUEST
TO SCHWEITZER BASIN WATER MAY 20,2015
In addition to the written copies provided as response to the requests, please provide all
Excel and electronic files on CD with formulas activated.
REQUEST NO. l: Please explain whether the Company plans to expand the water
system in the future.
REQUEST NO.2: When did the Company start delivering water to the first residential
customer and start charging fees for water service (i.e., month and year)?
REQUEST NO. 3: Please provide the service line sizes (diameter in inches) for all
customers currently served. Are the service line connects different for multi-unit dwellings (e.g.,
condominiums)? Please state the line diameter sizes for each multi-unit dwelling and the number
of rooms and any attached living units (no kitchen) or guesthouses.
REQUEST NO.4: For each of the four wells, please provide the total annual electric
power costs for the calendar years 2012,2013, and20l4 along with copies of the individual 2014
electric bills for each well.
REQUEST NO. 5: In reference to Attachment No. 7,the Company indicates that there
are four wells serving customers. Further, the Company has provided a State of Idaho Source
Water Assessment Report from 2000 for three of the four wells. Please respond to the following:
I ) Please provide well production data for the calendar years 2012,2013, and 2014 for
each of the four wells.
2) Please provide a copy of the State of Idaho Source Water Assessment Report for the
fourth well.
3) Please describe the water protection practices implemented for the sources
surrounding the four wells including contamination prevention, the steps taken by the
Company to prevent system corrosion, and how the Company maintains the integrity
of the casing, surface seal, and sanitary seal for each of the 4 wells.
FIRST PRODUCTION REQUEST
TO SCHWEITZER BASIN WATER 2 MAY 2O,2OI5
REQUEST NO. 6: In reference to Attachment No. 15, please respond to the following:
l) The Company indicates that there are 431 residential accounts currently connected to
the water system. Please provide a list of customers, including: a list of customer
addresses or locations, unit characteristics according to the current rate schedule (i.e.,
single family residential, multi-family residential condominium units, or commercial
customers), and approximate occupancy (i.e., number of months per year).
2) Please provide a list of any un-serviced, standby accounts included on the system.
Please explain whether the Company collects connection fees or service fees from
these types of customers. If the Company collects fees from standby customers,
please provide: a list of customers, the amount the Company is collecting from each
customer per month, and the total amount collected from each customer to date.
REQUEST NO. 7: In reference to Information No. 16, please respond to the following:
l) The Company estimates the number of future customers using an Equivalent
Residential Use (ERU) method. Please provide an executable electronic copy of the
Company's worksheet showing how ERU is estimated for various classes of
customers including single family residential, multi-family residential (e.g., 1-room,
2-room, 3-room condominium units), and commercial customers.
2) The Company indicates that there are 612 ERU's to be ultimately served by the
system. Please clarify whether there will need to be additional capital investments in
order to serve this projected number of ERUs, and if so, what types of investments.
Also, please state how many ERU's can be served by the current system without
additional capital investments.
3) Please explain whether the Company plans to expand the system or connect any
adjacent system in the future. If a system expansion is contemplated, please provide a
map that includes current areas served with the potential additional areas.
4) Are any common property areas seryed or anticipated to be served (e.g., lawns or
swimming pools)? If so, how are (or will) the ERU's be estimated? Are there any
current service agreements to common property areas? Please explain.
5) Please explain whether the Company expects to serve any commercial accounts in
the future. If so, how are (or will) the ERU's be estimated?
FIRST PRODUCTION REQUEST
TO SCHWEITZER BASIN WATER 3 MAY 2O,2OI5
REQUEST NO. 8: In reference to Attachment 19, please respond to the following:
l) The Company currently charges two different monthly water service fees depending
on whether the unit/home is over 500 sqft ($41lmonth) or under 500 sqft
($39/month). The Company also charges a higher amount for a single unit with a
second living area (kitchen, bath) which can be rented ($S2lmonth), and a single unit
with a guest house or attached living unit (no kitchen) which can be rented
($65/month). Please explain the rationale for this method of billing. Please provide a
copy of the Company's analysis showing how these monthly fees were calculated.
2) Are higher monthly rates applicable when there are additional bathrooms?
3) The Company charges a connection fee (hook-up fee) of $6,950'oper single family
resident, one kitchen" and $6,950 for "each additional unit, multi-family units." The
Company also charges a connection fee of $3,475 for each "additional guest house or
living area used as a rental." Please provide a copy of the Company's analysis
showing how the $6,950 and $3,475 connection fees were estimated.
4) The Company currently charges three varying "water tap" fees according to location
(i.e., curb stop valve at property corner, water tap and line extension for lots on Fall
Line Road, and water tap and line extension on Ullr Drive). Please provide a copy of
the Company's analysis showing how these various rates were estimated.
5) The Company currently assesses fees for fire hydrants and appears to perform
installation services such as application, inspection, pressure testing, bacteria testing,
and mapping. Please provide a copy of the Company's analysis showing how the
$500 fire hydrant assessment was developed.
REQUEST NO. 9: Please explain whether the Company expects to serve any bulk
water usages. If so, please provide information on potential fees, including rationale and
assumptions used in all calculations.
FIRST PRODUCTION REQUEST
TO SCHWEITZER BASIN WATER 4 MAY 20,?,015
REQUEST NO. l0: The Company currently assesses fees for fire hydrants and appears
to perform installation services such as application, inspection, pressure testing, bacteria testing,
and mapping. Please confirm these services by the Company and provide the following:
l) A map of the fire hydrant locations;
2) All available fire hydrant testing data; and
3) Any correspondence with the Fire Marshall regarding the adequacy of the fire
response system including the number of fire hydrants, pressure, etc.
4) Are there any other fire services provided by the Company? Please explain.
REQUEST NO. 11: Please provide all water quality and water system issues and/or
violations identified since the completion of the Sanitary Survey in 2009. Please also provide the
status of compliance regarding those issues/violations.
REQUEST NO. 12: Please provide a list for the last three years of all service related
complaints (e.g. low system pressure, pump failure, water system leaks, water quality, high bills,
etc.) and an explanation on how each complaint was resolved.
REQUEST NO. 13: Please provide a list of all water quality tests for all water sources
(wells) within the distribution system as required by the IDEQ. For each type of test, indicate
the location, frequency, total cost per test and the prorated yearly (normalized) cost. Please see
the following table as an example:
Location Parameter Freouencv Cost ner Test Cost per Year
Well No. I Arsenic Everv 3 vears $20itest $6.67|vr
Well No. 1 Nitrate Everv vear $2Oltest S20lvr
REQUEST NO. 14: Please provide an estimate of total unaccounted water losses due to
leaks, wasted water, etc. by month for calendar years2012,2013 and2014. Please explain how
these losses are estimated.
REQUEST NO. 15: Please describe and estimate the cost of any major capital
improvements planned for the next three years.
FIRST PRODUCTION REQUEST
TO SCHWEITZER BASIN WATER 5 M AY 2O,2OI5
REQUEST NO. 16: Please state whether your financial statements are made
Cash or Accrual accounting method.
REQUEST NO. 17: Please provide an itemized list of all Revenues by type totaling
$209,000, as reported on the Profit and Loss Statement for the Calendar Year Ended December
31,2014. Each type of Revenue should be identified as shown on your Schedule of Current
Rates, dated December 31,2011, i.e., Water Sales, Hookup Fees, etc. Please round to the nearest
dollar.
REQUEST NO. 18: Please provide a list of projects included in the Repairs Expense
totaling $ 18,860, as reported on the Profit and Loss Statement for the Calendar Year Ended
December 31,2014. This list should itemize any projects or items with a total cost of $1,000 or
more. Each project or expense category, etc. with a total cost less than $1,000 should be
combined in a single category such as "All Other." Please round to the nearest dollar.
REQUEST NO. 19: Please state if any category of expenses, shown on your Profit and
Loss Statement for the Calendar Year Ended 2014, includes expenses for bad debts or
uncollectable accounts. [f expenses for bad debts or uncollectable accounts are included, please
identif, the account category and state the amount, rounded to the nearest dollar.
REQUEST NO. 20: The Balance Sheet for the Year Ended December 31,2014 shows a
Long-Term Liability totaling $290,067 was added during 2014. Please state the source of the
liability, interest rate, loan term and scheduled payment dates. Please provide a copy of the
loan/liability agreement and the lender's Loan Amortization Schedule.
REQUEST NO. 21: Please provide an alphabetical list of each asset, expense or other
application of the loan proceeds. This list should itemize each project or expense item for
amounts totaling $10,000, or more, include a detailed description and state the total cost ftrr each,
rounded to the nearest dollar. All projects or expenses with a total cost less than $10,000 should
be combined in a single category such as "All Other."
FIRST PRODUCTION REQUEST
TO SCHWEITZER BASIN WATER
the
MAY 20,2015
REQUEST NO.22: Account 390 on the Depreciation Schedule includes a road installed
in April 2013 with a cost totaling 534,022. Please provide a copy of all documents supporting
this total, including contract billings, invoices, etc. If this requires copies of more than ten
documents, please provide copies of the documents supporting amounts over $1,000.
REQUEST NO. 23: Please provide supporting documentation for the Fire Flow
Improvement listed in the Depreciation Schedule for Account 343. The date of service is shown
as December 31, 2011 with a cost equaling $11,715. The documentation should include
invoices, progress billings, etc.
REQUEST NO.24: Please provide a description of the Employee Housing added in
June 2014 listed in Account 390 on the Depreciation Schedule. The description should include
the number of bedrooms or dormitory areas, number of bathrooms, number of cooking areas,
total number of rooms and total square feet. Please state if any appliances are included in the
cost totalin g $412,599.
REQUEST NO.25: Please explain why the Employee Housing is part of the water
system.
REQUEST NO.26: Please provide a list of Aged Accounts Receivable for the Calendar
Years Ended 2012,2013 and 2014. The list should include a customer identifier, such as
account number or Surname. If any portion of the total owed is not for water service, please list
that amount separately. Please round to the nearest dollar.
REQUEST NO.27: Please provide a list of all employees during 2014. Please include
names, title and pay rate. Also, please indicate if the total equaling $93,386 as listed on the
Income Statement includes payroll taxes, such as unemployment insurance, or employee benefits
such as health insurance, etc.
FIRST PRODUCTION REQUEST
TO SCHWEITZER BASIN WATER MAY 20,2015
REQUEST NO.28: Please provide a copy of purchase contract between Schweitzer
Basin Water Company, and Schweitzer Basin LLC., for the sale of the water system and other
assets. If a contract was not used, please provide a description of the transfer method including
the agreed price. If any owner or officer of these companies was the same person, please state
their name(s) and title(s).
DATED at Boise, Idaho, thisp.0AOu, of May 2015.
Technical Staff: Johanna Bell/l -1 5
John Nobbsll6-28
Umisc/prod req/schwl 5. lnpjbjn prodreq I
FIRST PRODUCTION REQUEST
TO SCHWEITZER BASIN WATER
Deputy Attorney General
MAY 2O,2OT5
CERTIFICATE OF SERYICE
I IIEREBy CERTIFy rHAT I HAvE THIS 20ft Dny oF MAy zors, sERvED
THE FOREGOTNG FrRST PRODUCTTON REQUEST OF THE COMMISSTON
srArF To ScHwEITzER BASIN WATER LLC, IN CASE NO. SCH-W-15-01, BY
MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE FOLLOWING:
MEL BAILEY
OWNER
SCHWEITZER BASIN WATER
PO BOX772
SAGLE ID 83860
CERTIFICATE OF SERVICE