20201218Suez to Staff First Supplemental Response.pdf

Demo of StampPDF by Appligent, Inc. http://www.appligent.comDemo of StampPDF by Appligent, Inc. http://www.appligent.comSUEZ WATER’S SUPPLEMENTAL RESPONSE TO FIRST PRODUCTION REQUEST OF THE
COMMISSION STAFF - 1
15445768_1.DOCX [30-209]
Michael C. Creamer (ISB No. 4030)
Preston N. Carter (ISB No. 8462)
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

Attorneys for SUEZ Water Idaho Inc.

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF SUEZ WATER IDAHO INC. FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR WATER SERVICE
IN THE STATE OF IDAHO

Case No. SUZ-W-20-02

SUEZ WATER IDAHO INC.’S FIRST
SUPPLEMENTAL RESPONSE TO
FIRST PRODUCTION REQUEST
OF THE COMMISSION STAFF

SUEZ Water Idaho Inc., (“SUEZ Water” or “Company”) submits the following
supplemental responses to the First Production Request of the Commission Staff to
SUEZ Water, dated October 7, 2020.
DATED: December 18, 2020
SUEZ WATER IDAHO INC.
By: _______________________
Michael C. Creamer
Preston N. Carter
Attorneys for Applicant

RECEIVED
2020December 18, AM 10:25
IDAHO PUBLIC
UTILITIES COMMISSION
SUEZ WATER’S SUPPLEMENTAL RESPONSE TO FIRST PRODUCTION REQUEST OF THE
COMMISSION STAFF - 2
15445768_1.DOCX [30-209]
CERTIFICATE OF SERVICE

I certify that on December 18, 2020, a true and correct copy of the foregoing was
served upon all parties of record in this proceeding via electronic mail as indicated
below:

Commission Staff
Jan Noriyuki, Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Ste. 201-A
Boise, ID 83714
[e-mail]
Electronic Mail

Dayn Hardie
Deputy Attorney General
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Ste. 201-A
Boise, ID 83714
[e-mail]
Electronic Mail
Intervening Parties Electronic Mail
Ada County:
Lorna K. Jorgensen
John C. Cortabitarte
Ada County Prosecuting Attorney’s Office
Civil Division
200 W. Front Street, Room 3191
Boise, ID 83702
[e-mail]
Boise City:
Abigail R. Germaine
Deputy City Attorney
Boise City Attorney’s Office
150 N. Capitol Blvd.
P.O. Box 500
Boise, ID 83701-0500
[e-mail]
CAPAI:
Brad M. Purdy
2019 N. 17th Street
Boise, ID 83702
[e-mail]
Suez Water Customer Group:
Norman M. Semanko
Parsons Behle & Latimer
800 W. Main Street, Suite 1300
Boise, ID 83702
[e-mail]
[e-mail]
Intervenors:
Marty Durand
Piotwrowski Durand PLLC
1020 Main Street, Suite 440
P.O. Box 2864
Boise, ID 83701
[e-mail]
Idaho Fair House Council, Inc.
Ken Nagy
Attorney at Law
P.O. Box 164
Lewiston, ID 83501
[e-mail]

SUEZ WATER’S SUPPLEMENTAL RESPONSE TO FIRST PRODUCTION REQUEST OF THE
COMMISSION STAFF - 3
15445768_1.DOCX [30-209]

Micron Technology, Inc.
Austin Rueschhoff
Thorvald A. Nelson
Holland & Hart
555 17th St., Suite 3200
[e-mail]
[e-mail]
[e-mail]
[e-mail]

Jim Swier
Greg Harwood
Micron Technology, Inc.
8000 S. Federal Way
[e-mail]
[e-mail]

Preston N. Carter

SUZ-W-20-02
IPUC DR 1
Update 1 Page 1 of 1
SUEZ WATER IDAHO INC. CASE SUZ-W-20-02 FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: J. Cary
REQUEST NO. 1:
Please provide copies of the monthly trial balances from January 2017 through the most current month available. Please supplement your response when additional months become available throughout 2020.
RESPONSE NO. 1: Please see the attachment for the monthly trial balances from 2017 through September 2020.
Update 1 Please see the attachment for the monthly trial balance for October 2020 and November 2020.

CASE NO. SUZ-W-20-02

Supplemental Response No. 1
Attachment 1 Update

Excel Spreadsheet Provided Separately
in Native Format

SUZ-W-20-02
IPUC DR 17 Update 1 Page 1 of 1
SUEZ WATER IDAHO INC. CASE SUZ-W-20-02 FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: J. Cary C. Cooper
REQUEST NO. 17:
Please provide copies of the monthly, quarterly, and annual comparison of operating and capital budget to actual expenditures for 2016 - 2020 to date. Please include within your response a narrative explanation for budget variations. This should include, but not be
limited to, written operating and capital budget variance reports and explanations used by
Company officers and managers to monitor and control budgets under their responsibility. Please supplement your response as additional information becomes available throughout 2020.
RESPONSE NO. 17: Please see attached files for Operating expense and Capital budget variances and explanations.
The following monthly variance files are not available and are supplemented with financial
Income Statements showing the variance to budget and Year to Date variance analysis in subsequent months: Operating: January 2016, July 2016, April 2019, and May 2019

Capital: April 2019 Attachment 1 – containing operating expense and capital budget variances from January 2016 through March 2019, and capital budget variances from April 2019 to August 2020.

Attachment 2 - containing operating expense budget variances from June 2019 through September 2020. Attachment 3 – containing the income statement and variances from budget for months:
January 2016, July 2016, April 2019, and May 2019 Update 1 Please see Attachment 1 to DR 17 Update 1 for capital budget variances for October
2020. The capital budget variance for September 2020 has already been provided in the original response to Response 17, Attachment 1 page 133 of 133. Please see Attachment 2 to DR 17 Update 1 for the operating expense budget variances from October 2020 and November 2020.
19,801
17,286
690
(3,247)
82 (40)1.7%-7.8%0.2%-0.1%
BU Budget Blankets Engineering Large Projects Overheads Actuals
1 I
October 2020 Capex Highlights: Actuals vs. Budget
ID Region
Utility Monthly Capex Review –October 2020
Favorable due to timing of network and plant projects…
*All figures in $’000** (%) delta vs. Region budget per category***Excludes Corp OH
Outlook
Blankets $0.7M higher due to timing change
Engineering ($3.2M) lower due timing of network/plant projects (Spurwing, MWTP Controls, Whistle Pig Tank).
Construction crews fully deployed for remaining rate case projects
Large Proj.On target
OH On target
Adj.N/A
SUZ-W-20-02
IPUC DR 17 Update 1 Attachment 1
Page 1 of 1
October Total Book Total Data TypTotal Projects Idaho BU Division Total Departments OU_Rollup_by_BU Total_Cost_ElemenHSP_InputValue USDFY19FY20FY20FinalWorkingFinal($$ in '000)Actuals Budget Actuals Vs. Budget Comment Vs. Prior Year Comment (Threshold: $50K)
Revenue 2,946 3,273 3,358 86 Volume $88k - Water sold 155 MG over, Facility Charges
($5k) 413 Volume $440k - Water sold 205 MG higher. Facility
Charges ($27k), Surcharges/Other ($5k)
Personnel Expense 600 657 627 30 Payroll $30k lower - Vacancies, higher trnfr out; Benefits
$0k - Higher Medical offset by transfered out & lower
Workers Comp
(27) Payroll $4k - Additional headcount & higher wages
offset by higher trnsfr out; Benefits ($31k) - Higher
medical offset by Higher Fringe transferred out
Other Expenses 153 209 130 79 marketing timing); ($5k) Cellphone timing, $2k HRATV Conf savings, $12k P-card accrual, $7k Right Systems
uniforms/$4k safety
23
Operating & Maintenance Costs 1,028 1,153 1,072 81 (44) M&S Fees 333 309 362 (53) Unfavorable due to outside consulting spending (29)
Write-off Expense 26 24 16 8 landlord/tenant accounts. Disconnections would start 36
days after restart. Will not restart Residential accounts 9
General Taxes 171 183 161 22 higher but resulting tax lower, JE based on consultant's 10 Lower levy rate
PW, WO, and General Taxes 197 208 177 30 20
Other Income Included in EBITDA (91) (138) (163) 25
Non-recoverable - $25k higher CIAC tax collected -
Developer activity continues strong. PUC filing approved. No additional CIAC tax to be collected. Pending CIAC 72 Non-recoverable - $75k higher CIAC tax collected in 2020 - No further CIAC tax to be collected in 2020
71050 - AFUDC Gross up (21) - - - tax basis is flowed thru reg asset and deferred tax liability (balance sheet only)
(21) reg asset and deferred tax liability (balance sheet
AFUDC Exp (109) (35) (47) 12 (62) 2019 Sunset Peak, Redwood Creek timing & Brian
Subdivision post closing AFUDC
Provision - - 126 (126) New monthly uncollectible reserve calc. (126) New monthly uncollectible reserve calc.
Depreciation Expense 798 841 834 7 (36)
Depreciation & Amortization 798 841 960 (119) (162)
EBIT 789 935 997 62 208
Interest & Other Financial Income 338 376 315 61 23 Exceptional Items - - - - -
Pre-tax Income 451 559 682 123 232 Taxes 240 144 424 (280) (184)
Total Net Incomes 211 415 258 (157) 48
SUZ-W-20-02 IPUC DR 17 Update 1 Attachment 2
Page 1 of 4
Year To DateTotal Book Total Data TypTotal Projects Idaho BU Division Total Departments OU_Rollup_by_BU Total_Cost_ElemenHSP_InputValue USDFY19FY20FY20
Final Working Final
($$ in '000)Actuals Budget Actuals Vs. Budget Comment Vs. Prior Year Comment (Threshold: $50K)
Revenue 41,530 43,078 42,665 (414) Volume ($436k) - Water sold 149MG under plan, Facility
Charges $23k due to growth (979 new meter installs YTD). 1,135 Water sold 304MG or $854k higher. Faciltiy Charges
$317k - growth. Surcharges/Other fees ($36k)
Personnel Expense 5,581 6,597 6,314 283 count/backfill, higher trnfr out; Benefits $47k - Higher Medical offset by lower taxes & work comp & (733) wages; Benefits ($251k) - Higher medical, taxes, 401K, workers comp offset by higher fringe transfer
Subcontractor Exp 776 770 849 (80)
Legal ($51k) CIAC tax, Regulatory matters, hrs revisions,
convenience fees; Temps ($30k) CSR/meter reader
vacancies (foregoing x-train temp), ($36k) Tank maint.,
($7k) Locating, $17k General maint., ($12k) New Concur
fees, $15k Sensus, ($3k) Lab testing, $13k WU/Ebilling,
$15k CCB support
(73)
($3k) legal, ($48k) Tank maint., $16 gen. maint., Temps ($20k), ($23k) Notify, ($14k) Itron support, Digline fees ($16k), ($12k) Concur fees, $6k lab testing cycle, $6k collection call service, $8k Collection fees, $12k WU fees, $14k CCB Support
Other Expenses 1,738 1,941 2,023 (82)
delay in new vehicles, lower gas prices & higher trnfr out; $129k Adv. - $30k CCR V3 cut, $32k corp. web promotion savings, (~$44k postponed to 2021); $120k Office Exp lower - travel/training savings $47k, telephone
lower IVR & elimated lines $31k, ($52k) Materials - more
maint.
(284) ($440k) Insurance adj, $88k Office Exp - mostly travel & training savings; telephone; $30k advertising; $35k Landscaping extra repairs/start-up new contractor
Operating & Maintenance Costs 10,600 11,793 11,637 155 (1,038)
M&S Fees 3,122 3,127 2,885 242 Favorable due to vacancy and outside consulting spending 238 Favorable due to vacancy and outside consulting spending
Water Purchased Expense 143 163 181 (19)
Lucky Peak BOR Maintenance fee ($8k) higher - Additional 500 acre ft ($10k) purchased in June due to collector rehab & Middleton Irrigation long term lease potential offset by well cleaning chemicals not needed
(38)
($20k) Additional Boise Canal shares, ($8k) Lucky
Peak BOR maintenance. Additional 500 acre ft ($10k)
purchased in June due to collector rehab &
Middleton Irrigation long term lease potential offset
by well cleaning chemicals not needed
Write-off Expense 234 218 170 47 due to Covid 64 Lower write-offs & Leak adjustments due to Covid
General Taxes 1,711 1,832 1,609 223 2020 Valuation is higher but anticipate the levy rate will
be close to 2019, JE based on consultant's estimate 102 Lower levy rate than anticipated, valuation was
higher but resulting tax is lower
PW, WO, and General Taxes 2,088 2,212 1,960 252 128
Other Income Included in EBITDA (1,379) (1,335) (1,320) (15)
Non-recoverable - ($6k) lower CIAC tax collected - Developer growth continues strong despite coronavirus impact- CIAC tax revision approved Oct. No additional CIAC tax collected, ($13k) Covid-19 Donations, $11k
(60)
Non-recoverable - ($42k) lower CIAC taxes collected
in '19; $20k Fountain donation, ($74k) Eagle Water
acq. legal reclass, ($30k) Lobbyist, ($14) Covid-19
donations, ($7k) higher IACI dues
71050 - AFUDC Gross up (173) - 12 (12) tax basis is flowed thru reg asset and deferred tax liability (balance sheet only) (184) difference between book and tax basis is flowed thru
reg asset and deferred tax liability (balance sheet
AFUDC Exp (892) (332) (646) 314 Redwood Creek Pipeline timing (246) 2019 Sunset Peak, Redwood Creek projects & Brian
Subdivision post closing AFUDC
Provision - - 463 (463) New monthly uncollectible reserve calc. (463) New monthly uncollectible reserve calc.
Depreciation Expense 7,956 8,328 8,218 110 Revised capex budget (262) Higher Capex budget Amortization Expense - - - - -
SUZ-W-20-02 IPUC DR 17 Update 1 Attachment 2
Page 2 of 4
November Total Book C Total Data TypTotal Project Idaho BU Division Total DepartmOU_Rollup_by_BU Total_Cost_ElemenHSP_InputValue USD
FY19 FY20 FY20FinalWorkingFinal
($$ in '000)Actuals Budget Actuals Vs. Budget Comment Vs. Prior Year Comment (Threshold: $50K)
Revenue 2,177 2,413 2,341 (73) Volume ($83k) - Water sold 36 MG under,
Facility Charges $13k 164
Volume $64k - Water sold 24 MG higher.
Facility Charges $101k, Surcharges/Other
Personnel Expense 722 642 683 (40) 39 wages offset by higher trnsfr out; Benefits
$48k - Higher medical offset by Higher Fringe
Other Expenses 321 268 247 21 Transportation lower 74 Materials $23k - reclassed $19k to Capex in
Dec. '19 due to miscodes; $29k vehicle
Operating & Maintenance Costs 1,307 1,101 1,140 (39) 167
M&S Fees 304 303 329 (26) Unfavorable due to higher personnel expenses (25) Unfavorable due to higher personnel expenses Water Purchased Expense - - 17 (17) Timing - Lucky Peak BOR budget in Dec. (17)
Write-off Expense 21 26 22 4 (0)
General Taxes 81 183 85 98 (4)
PW, WO, and General Taxes 103 209 123 86 (21)
Other Income Included in EBITDA (64) (138) (37) (101)
Non-recoverable - ($90k) CIAC tax collected -
PUC filing approved. No more tax collected -
Pending refunds of $869k in Dec.
(27)
71050 - AFUDC Gross up (22) - - - (22)
Starting 1/1/2020, no more P&L impact. The
difference between book and tax basis is
flowed thru reg asset and deferred tax liability (balance sheet only)
AFUDC Exp (115) (43) (37) (6) (77) 2019 Sunset Peak, Redwood Creek timing &
Brian Subdivision post closing AFUDC
EBITDA 642 981 822 (159) 180
Depreciation Expense 798 842 838 5 (39)
Depreciation & Amortization 798 842 777 66 22
EBIT (156) 139 46 (93) 202
Interest & Other Financial Income 369 375 313 63 56 Exceptional Items - - - - - Pre-tax Income (525) (237) (267) (30) 258 Taxes 41 (67) (271) 205 313 Total Net Incomes (566) (170) 4 174 571
Effective Tax Rate -8%28%102%
SUZ-W-20-02 IPUC DR 17 Update 1 Attachment 2
Page 3 of 4
Year To DateTotal Book Total Data TypTotal Projects Idaho BU Division Total Departments OU_Rollup_by_BU Total_Cost_ElemenHSP_InputValue USD
FY19 FY20 FY20
Final Working Final
($$ in '000)Actuals Budget Actuals Vs. Budget Comment Vs. Prior Year Comment (Threshold: $50K)
Revenue 43,706 45,492 45,005 (486) Volume ($519k) - Water sold 185MG under plan, Facility
Charges $37k due to growth (~1000 new meter installs 1,299 Volume $918k - Water sold 451 MG higher. Faciltiy
Charges $418k - growth. Surcharges/Other fees ($37k)
Personnel Expense 6,303 7,240 6,997 243 count/backfill, higher trnfr out; Benefits $82k -
Higher Medical offset by lower taxes & work comp & (693)
Subcontractor Exp 894 820 916 (96)
Legal ($55k) CIAC tax, Regulatory matters, hrs revisions,
convenience fees; Temps ($32k) CSR/meter reader
vacancies (foregoing x-train temp), ($36k) Tank maint., ($8k) Locating, $2k General maint., ($11k) New Concur fees, $10k Sensus/Itron, $9k misc, ($5k) Lab testing, $14k
WU/Ebilling; $16k CCB Support Corp. Alloc
(22)
Other Expenses 2,059 2,209 2,270 (61)
delay in new vehicles, lower gas prices & higher trnfr
out; $124k Adv. - $30k CCR V3 cut, $32k corp. web promotion savings, (~$44k postponed to 2021); $120k Office Exp lower - travel/training savings $49k, telephone lower IVR & eliminated lines $33k, ($54k) Materials -
more maint.
(210)
Operating & Maintenance Costs 11,907 12,894 12,777 117 (871)
M&S Fees 3,426 3,430 3,214 216 Favorable due to BTS true ups relating to group chargeback for expats and COVID related savings (lower
travel/outside services etc)
212 Favorable due to BTS true ups relating to group chargeback for expats and COVID related savings
(lower travel/outside services etc)
Water Purchased Expense 143 163 198 (35)
($17k) Lucky Peak BOR timing. Lucky Peak BOR
Maintenance fee ($8k) higher - Additional 500 acre ft
($10k) purchased in June due to collector rehab &
Middleton Irrigation long term lease potential offset by
well cleaning chemicals not needed
(55)
Write-off Expense 255 244 192 52 delayed due to Covid - Collections on Commercial 64 Lower write-offs & Leak adjustments due to Covid
General Taxes 1,792 2,015 1,694 321 Actual tax $1.8M - Adjust in Dec. 98
PW, WO, and General Taxes 2,191 2,421 2,084 337 107
Other Income Included in EBITDA (1,443) (1,473) (1,356) (116)
Non-recoverable - ($96k) lower CIAC tax collected - CIAC tax revision approved Oct. No additional CIAC tax
($10k) Holiday gift timing
(87)
Non-recoverable - ($24k) lower CIAC taxes collected in '19; $20k Fountain donation, ($74k) Eagle Water
acq. legal reclass, ($30k) Lobbyist, ($14) Covid-19
donations, ($7k) higher IACI dues
71050 - AFUDC Gross up (195) - 12 (12)
(balance sheet only)
(206)
AFUDC Exp (1,007) (375) (683) 308 Redwood Creek Pipeline $180k; Spurwing Main project
$26k; Hidden Springs Resv $27k; C17A101/C18A100 $30k possible reclass (323) 2019 Sunset Peak, Redwood Creek projects & Brian
Subdivision post closing AFUDC
Provision - - 402 (402) New monthly uncollectible reserve calc. (402) New monthly uncollectible reserve calc. Depreciation Expense 8,755 9,170 9,056 114 Revised capex budget (301) Higher Capex budget Amortization Expense - - - - -
SUZ-W-20-02 IPUC DR 17 Update 1 Attachment 2
Page 4 of 4