20091120UWI to Staff 42, 55, 58-59, etc.pdf

McDevitt & Miller LLP
Lawyers i-"""'i'irr"p,_, .. ,,_, r;;r'\ ri "'¡ ~" ",. ~,~,. --,,,
[phone]
[phone] (Fax)
420 W. Bannock Street
P.O. Box 2564-83701
Boise, Idaho 83702
November 20,2009
ZOß9 NOV 20 PM 2: 38 Chas. F. McDevitt
. . ,_,', ,_. Dean J. (Joe) Miler
lr~6tJO' PUd~_l-~~/ '_ _ ...W. '\/i l ""E. ilf.'l~:"r.",¡:¡-=i'j
U-- ~ii!Ll,T'ir:,',~ ("e Jf'\/¡",t\p!¡t~0i~);~"_ _ l - l t,w- ...'l.ç n l '0 -
Vìa Hand Delivery
Jean Jewell, Secreta
Idaho Public Utities Commssion
472 W. Washigton St.
Boise, Idaho 83720
Re: Case No. UW-W-09-01
General Rate Case Filing
Dear Ms. Jewell:
Enclosed for fig, please fid thee (3) copies of:
.United Water Idaho's Thd Response to Commssion Staffs Second Production Request
No. 31;
.United Water Idaho's Thd Response to Commssion Staffs Thd Production Request
No's. 42, 55, 58, 59, 64, 65, 66, 67, 68, 72 and 78;
.United Water Idaho's First Response to Commssion Staffs Fourth Production Request
No's 80,81, 83, 88,93, 96, 113, and 114;
Kidly retu a fie staped copy to me.
Very Truy Yours,
McDevitt & Mier LLP
~
DJM/hh
End
Dean J. Miler (ISB No. 1968)
McDEVITT & MILLER LLP
420 West Banock Street
P.O. Box 2564-83701
Boise, Idaho 83702
Tel: [phone]
Fax: [phone]
joe(ßmcdevitt -miler. com
Attorneys for United Water Idaho Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
UNITED WATER IDAHO INC., FOR )
AUTHORITY TO INCREASE ITS RATES AND ~
CHARGES FOR WATER SERVICE IN THE )STATE OF IDAHO )
)
CASE NO. UWI-W-09-01
UNITED WATER IDAHO INC'S
THIRD RESPONSE TO
COMMISSION STAFF'S SECOND
PRODUCTION REQUEST
United Water Idaho Inc, ("United Watet') by and through its undersigned attorneys,
hereby submits its Third Response to the Commission Staffs Third Production Request No.'s.
42,55,58,59,64,65,66,67,68, 72, and 78.
DATED this ~day of November, 2009.
UNITED WATER IDAHO INC.
BY:~.~
McDevitt & Miler LLP
420 West Banock
Boise, Idaho 83702
P: 208.343.7500
F: 208.336.6912
Attorney for United Water
UNITED WATER IDAHO INC'S THIR RESPONSE TO COMMISSION STAFF'S SECOND
PRODUCTION REQUESTS- 1
CERTIFICATE OF SERVICE
I hereby certify that on the ~y of November, 2009, I caused to be sered, via the
methodes) indicated below, true and correct copies of the foregoing document, upon:
Jean Jewell, Secretar
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise,ID 83720-0074
j j ewell(ßpuc. state. id. us
Hand Delivered
U.S. Mail
Fax
Fed. Express
Email
Brad M. Purdy
Attorney at Law
2019 N. 17th Street
Boise, ID 83702
bmpurdy(hotmail.com
Hand Delivered
U.S. Mail
Fax
Fed. Express
Email
1
:-I.
U
:-I.
:-I.K
:-I.
:-I.u
UNITED WATER IDAHO INC'S THIR RESPONSE TO COMMISSION STAFF'S SECOND
PRODUCTION REQUESTS- 2
"
UNITED WATER IDAHO INC.
CASE UWI..W..09;.Ol
THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer: Patrcia Foss
Sponsoring Witness: GregoryP. Wyatt
REQUEST NO. 42:
Please provide the record of customer complaints and requests for conferences for calendar year
2006 though 2009 to date. (UCRR - Rule 403)
RESPONSE NO. 42:
The records for2008 and 2009 to date are attached.
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5
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer: Patrcia Foss
Sponsoring Witness: GregoryP. Wyatt
REQUEST NO.: 55:
In his direct testimany, custonier service witness Gregory P.Wyatt stated that the Company had
implemented an interactive voice response system in 2007 to assist customers in paying their
bils byphoiie. Please describe all typ~sof calls the ComPaiY's IVRsystem cai handle and
identify the implementation date for each type of call handled by the IVRsystem. Please
provide a call routing an choice selection char or drawing for the system.
RESPONSE NO. 55:
United Water Idaho's IVR system is curently limited to customer payments only. As, such,
there is no call routing and choice selection char for the system. '"tle custömer cancallthe toll-
free number at any time and is connected to the Western Union SpeedPay systent for payments.
ThelVR was available in Idaho beginning in May 2007.
r
UNITED WATER IDAHO INC.
CASE UWI..W-09-01
THIRD PRODUCTION REQUEST OF TilE COMMISSION STAFF
Preparer: Patrcia Foss
Sponsoring Witness: Gregory P. Wyatt
REQUEST NO. 58:
Please provide the number of incoming calls handled by the customer service call center by
month'forthe calendar year 2006, 2007, 2008 and 2009.to date. Please differentiate between
IVR and CSR calls.
RESPONSE NO. 58 CORRCTED:
The initial submission of data on calls handled by customer service was incorrect. . The corrected
number of incoming calls handled by customer service by month for the requested years is
attached. ,All calls are answered by customer serice representatives.
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UNITED WATER IDAHO INC.
CASE UWI- W -09-01
THIRD PRODUCTION REQUEST OF TH COMMSSION STAFF
Preparer: Patricia Foss
Sponsorig Witness: Gregory P. Wyatt
REQUEST NO. 59:
Please provide the number of abandoned calls to the customer service call center by month for
the calendar years 2006, 2007, 2008 and 2009 to date. "Abandoned calls" are calls that reach the
Company's incoming telephone system, but the calling pary terminates the call before speaking
with a customer service representative. Please differentiate between IVR and CSR calls.
RESPONSE NO. 59:
The number of abandoned calls for the requested periods is attached. All calls are to the
customer service center. For puroses of the customer service level "Abandon Call Rate", the
Company considers only those calls abandon over 10 seconds. It is the Company's opinion that
a customer unwiling to hold for at least 10 seconds is likely abandoning the call for reasons
other than their unwilingness to wait for a Customer Service Representative. These reasons may
include wrong number, interrption at home, answered own question, etc.
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UNITED WATER IDAHO INC.
CASE UWI-W-09-01
THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Donna ColeiKevin Doherty
REQUEST NO. 64:
Please provide a wrtten description of all changes to Company governance and operations
implemented in response to the Sarbanes-Oxley Act, the related SEC rulings to implement it, and
the Public Company Accounting Oversight Board (PCAOB) to date. Please include within your
response how and when those changes were implemented and any costs associated with the
changes. Also provide a schedule showing how the costs have been allocated to UWI or any unit
that includes those costs directly and/or indirectly when biling costs to Uwi. Please separate
cost data by year and identify the amount by each account and business unit in which those costs
were posted.
RESPONSE NO. 64:
United Water is not a publicly traded company and is therefore not subject to the Sarbanes Oxley
Act (SOA). Although United Water is not required to comply with the SOA, as a wholly owned
subsidiar of a foreign parent, SUEZ ENVIRONNEMENT, United Water is required to and
continues to comply with various European regulations.
In 2005, United Water under the direction of its parent company developed an internal control
program known as the CODIS (Control and Disclosure) program. The CODIS program
contributes to the assessment of United Water's General Internal Control Environment. At
United Water, business process owners are individually responsible for executing and evidencing
a wide varety of internal control activities. These activities are documented and are available
from the United Water Internal Control Coordinator (ICC) upon request. These controls are
routinely reviewed via an anual self-assessment process by business process owners who
review and ensure that the controls are appropriately designed and operating. These controls are
also reviewed and audited by United Water's internal auditors on an anual basis, with limited
review by external auditors. Testing results are communicated to our parent company and United
Water as a whole plays a fudamental par in ensurng the company's U.S. entities are compliant
with all applicable laws and regulations.
Throughout his process United Water has strengthened its controls in various areas. These
include significant improvements over:
. Legal contract review process
. Procurement: vendor processing, large purchases
· Accounting controls: closing controls
· Customer Service: new business and revenue processing
The company is committed to maintaning good internal controls and preparing fair and accurate
financial statements. For the purose of COD IS compliance, United Water must also:
· Notify its parent, GDF Suez/SUEZ ENVIRONNEMENT, on a real-time basis of any
matenal changes in its financial condition,
· Report all subsequent events to GDF Suez/ SUEZ ENVIRONNEMENT pnor to its fiing
of financial statements,
· Maintain a financial expert on its Audit Committee,
· Ensure that neither the Board of Directors, nor any individual Director or Offcer, interferes
with the. internal or external audit process,
· Not extend any loans to Offcers or Directors and
· Not perform any off-balance sheet accounting. (Usage Note: 'Offbalance accounting'
should not be confused with 'offbalance sheet obligations and commitments', the latter of
which the company maintains and fully discloses in its annual audited financial statements
in accordance with US GAAP.)
Please see excel fie attached for a schedule of costs incured to implement the CODIS program.
íi~
10 Request No.
64.xlsx
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UNITED WATER IDAHO INC.
CASE UWI-W-09-01
THIR PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Donna Cole!Kevin Doherty
REQUEST NO. 65:
Please provide a contact name and phone number of the individual(s) with which Idaho Public
Utilities Commission Staff can discuss governance, Sarbanes-Oxley and the previous response.
RESPONSE NO. 65:
The appropriate contact person is Mr. Mark McKoy, Finance Manager. Mr. McKoy's business
telephone is 201 7672827.
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Donna Cole!Kevin Doherty
REQUEST NO. 66:
Please provide a copy (or list identifying date of receipt and providing a detailed description of
topic) of any and all "Dear CFO" letters from the SEC received by the parent company and any
company/business unit during 2007, 2008 and 2009 to date. Please consider this request as
continuing and provide updates if any additional "Dear CFO" letters are received.
RESPONSE NO. 66:
United Water Inc., United Water Resources Inc. and United Water Idaho Inc. are not publicly-
traded companies and as such are not requied to fie any reports with the SEC and therefore do
not have any "Dear CFO" letters.
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Donna Cole!Kevin Doherty
REQUEST NO. 67:
Please provide a copy (or list identifying date of receipt and providing a detailed description of
topic) of any and all Comment Letters from the SEC received by the parent company and any
company!business unit durng 2007, 2008 and 2009 to date. Please consider this request as
continuing and provide updates if any additional letters are received.
RESPONSE NO. 67:
United Water Inc., United Water Resources Inc. and United Water Idaho are not publicly-traded
companies and as such are not required to fie any reports with the SEC and therefore do not
have any Comment Letters from the SEC.
UNTED WATER IDAHO INC.
CASE UWI- W -09-01
THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Donna Cole!Kevin Doherty
REQUEST NO. 68:
Please provide a copy (or list identifying date of receipt and providing a detailed description of
topic) of any and all wrtten (both electronic and non-electronic), substantive communications
from the SEC received by the parent company and any company!business unit durng 2007, 2008
and 2009 to date.
RESPONSE NO. 68:
United Water Inc.; United Water Resources Inc. and United Water Idaho Inc. are not publicly-
traded companies and as such are not required to fie any reports with the SEC and therefore do
not have any substative communications from the SEC.
,r
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF
PreparerlSponsoring Witness: Scott Rhead
REQUEST NO. 72:
Please provide a detailed written description of the Company's capital expenditure process.
Include a full description with at least the following: a) method to establish total capital
expenditure budget; b) prioritization and allocation of that budget to specific and blanet
projects; c) reassignent of budget allocations based upon project varances (if one project is
under budget is another project added to expend those unused dollars or the opposite); d)
methodology to determine which projects are high priority and which can be deferred untilthe
economic climate (or other factors) are improved; e) asset management transactional process
(how projects are entered into that system and ultimately closed to the general ledger and by
whom), and f) other items relevant to the process including a listing and copy of all documents
and reports required and maintained throughout the process.
RESPONSE NO. 72:
The Company's capital expenditure process is described and governed by a document entitled
"United Water Capital Expenditue Policy and Procedure Manual 2008".
The policy document is lengthy and is available for inspection at the Company's office durng
regular business hours. Below is the table fc contents of the ManuaL.
Section 1 Capital Expenditure Control System
1.1 Policy
1.2 Scope
1.3 Practice
1.4 Responsibility
Section 2 Preparation ofthe Capital Expenditure Plan
2.1 General
2.2 Capital Project Numbering System
2.3 Project Priority Codes
2.4 Determination of Planing Period Capital Expenditures
2.5 Project Cost Estimates
2.6 Project Descriptions and Justifications
,
Section 3
Section 4
Section 5
Capital Plan Review and Approval
3.1 Anual Capital Expenditue Plan Processes
3.2 UWM&S Capital Investments Function
3.3 President/COO Function
3.4 Board of Directors Function
Capital Project Approval Utilizing CEA
4.1 General
4.2 Routing and Approval of the CEA Form
4.3 Explanation ofthe CEA Form Components
4.5 Supplemental Information to Accompany CEA
Capital Expenditure Monitoring and Management
5.1 General
5.2 Capital Expenditure control System Policy
5.3 Capital Expenditure Authorization
5.4 Capital Expenditur Sumar Reports
5.5 True Up Constrction Costs for Capital Projects
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
REQUEST NO. 78:
Please provide the Company's water quality testing schedule, how it relates to DEQ's
compliance requirements and a detailed report of water quality expenses for the test year and the
previous year that includes:
a. transaction amount;
b. date paid;
c. vendor paid;
d. testing performed; and
e. invoice/transaction number of payment.
RESPONSE NO. 78:
The Idaho DEQ testing schedule requirements for the period of2008 - 2010 is attached. Also
attached is a spreadsheet detailing the water quality expenses for both the test year and previous
year, as requested.