20050211Exhibit 3 Sch 4 Income Tax.xls

Sheet3
Sheet2
Sheet1
UNITED WATER IDAHO
Computation of State and Federal Income Taxes
At Present and Proposed Rates
Line
EXISTING
PROPOSED
No.
RATES
(1)
(2)
1.
OPERATING INCOME BEFORE INCOME TAXES
2.
LESS: TAX DEDUCTIONS
3.
Interest Expense (A)
4.
Excess Tax Over Book Depreciation (B)
5.
TOTAL TAX DEDUCTIONS
6.
Taxable Income-State
7.
State Income Tax at 8%
8.
Federal Taxable Income (L.1-L.3-L.7)
9.
Federal Income Tax at 35%
10.
Less: Amortization of ITC
11.
NET FEDERAL INCOME TAX EXPENSE
12.
(A) CALCULATION OF INTEREST EXPENSE DEDUCTION:
13.
Pro Forma Rate Base
14.
Debt Percentage of Capitalization
15.
Debt Portion of Rate Base
16.
Debt Rate
17.
INTEREST EXPENSE
18.
(B) EXCESS TAX OVER BOOK DEPRECIATION:
19.
Pro Forma Tax Depreciation
20.
Pro Forma Book Depreciation
21.
EXCESS TAX OVER BOOK DEPRECIATION (B)
Exhibit No. 3
J. Healy
Schedule 4
Page 1 of 1
$9,811,785.00
$16,535,538.00
$5,475,409.09
$5,475,409.09
$7,261,492.00
$7,261,492.00
$12,736,901.09
$12,736,901.09
($2,925,116.09)
$3,798,636.91
($234,009.29)
0.08
$303,890.95
0.08
$4,570,385.20
$10,756,237.96
$1,599,634.82
0.35
$3,764,683.29
0.35
($47,160.00)
($47,160.00)
$1,552,474.82
$3,717,523.29
$140,062,546.00
0.55
77118437.83
0.07
$5,475,409.09
$13,648,001.00
$6,386,509.00
$7,261,492.00