20091201UWI to Staff 123-125, 140, 145.pdf

McDevitt & Miller LLP
Lawyers
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[phone]
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420 W. Bannock Street
P.O. Box 2564.83701
Boise, Idaho 83702
2009 DEC -I PM I: 0 I Chas. F. McDevitt
Dean J. (Joe) Miler
December 1, 2009
Via Hand Delivery
Jean Jewell, Secreta
Idaho Public Utities Commssion
472 W. Washigton St.
Boise, Idaho 83720
Re: Case No. UWI-W-09-01
General Rate Case Filing
Dear Ms. Jewell:
Enclosed for fig, please fid thee (3) copies of United Water Idaho's Second Response to
Commssion Staffs Fifth Production Request Nos. 123-125, 140 and 145.
Kidly retu a fie stamped copy to me.
Very Truy Yours,
\Stt~Dean J. Mier
DJM/hh
End.
ORfGfNAL
Dean J. Miler (ISB No. 1968)
McDEVITT & MILLER LLP
420 West Banock Street
P.O. Box 2564-8370l
Boise, Idaho 83702
Tel: [phone]
Fax: [phone]l2
joeêmcdevitt -miler. com
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2009 DEC -I PH ,: 0 I
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
SECOND RESPONSE TO
COMMISSION STAFF'S FIFTH
PRODUCTION REQUESTS
United Water Idaho Inc, ("United Water") by and though its undersigned attorneys,
hereby submits its Second Response to the Commission Staffs Fifth Production Request Nos.
l23-l25, l40 and l45.
DATED this ~day of December, 2009.
UNITED WATER IDAHO INC.
BY.~J wQ
~f. Miler ,
McDevitt & Miler LLP
420 West Bannock
Boise, Idaho 83702
P: 208.343.7500
F: 208.336.69l2
Attorney for United Water
UNITED WATER IDAHO INC'S SECOND RESPONSE TO COMMISSION STAFF'S FIFTH
PRODUCTION REQUESTS- 1
CERTIFICATE OF SERVICE
I hereby certify that on the j~ day of December, 2009, I caused to be served, via the
method(s) indicated below, tre 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
jjewellêpuc. 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
bmpurdyêhotmail.com
Hand Delivered
U.S. Mail
Fax
Fed. Express
Email
)(:-l.
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UNITED WATER IDAHO INC'S SECOND RESPONSE TO COMMISSION STAFF'S FIFTH
PRODUCTION REQUESTS- 2
j -
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
FIFTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
REQUEST NO. 123:
Referrng to Rhead's Exhibit No.5, Purchased Water Expenses, please identify those purchases
wherein the quantity and/or cost have been estimated for the 2010 season and those for which the
purchase has already been made or for which a contract has already been signed. For those
purchases that have yet to be executed, please provide an estimate of when those purchases will
be made. For those purchases that have been estimated, please discuss the basis for the estimated
cost and quantity.
RESPONSE NO. 123:
Please refer to the attached spreadsheet that has been modified to provide the requested
information for each line that has purchased water expense. All lines with "free" natural flow
have been deleted for clarity. In general all purchases will be made in Janeb 2010. The
amounts/volumes are fixed with the exception of Basin 63 Rental Pool (2000 acre-feet) and the
associated payments to Eureka Ditch Company (1000 acre-feet) and Canyon County Water
Company (1000 acre-feet). These purchases will be made in May 2010 depending on
winter/spring snow pack conditions and associated drought forecasts.
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UNITED WATER IDAHO INC.
CASE UWI-W-09..01
FIFTH PRODUCTION REQUEST OF THE COMMISSION STAFF
PreparerlSponsoring Witness: Scott Rhead
REQUEST NO. 124:
Data provided in response to Staff Request No. 27 seems to indicate a gradually decreasing total
volume of purchased water from 2005 through 2009 and a corresponding decrease in total
purchased water costs. Please explain this downward trend. In addition, please explain why
UWI is requesting a pro forma purchased water expense that seems counter to this trnd:
RESPONSE NO. 124:
This declining trend in purchased water cost is directly related to a more "normal' weather cycle
and associatedwinterlspring moisture. Early in this four year period (2005-06), when we were
experiencing adrer than normal water cycle, the Company rented more water frm the Basin 63
Rental Pootand chose (for drought protection) to preserve the 2100 acre feet (af)underdirect
contract with the Bureau of Reclamation (BOR). Later in this period (2007-08), when the water
years were more normal, the Company reduced the amount rented and used water already under
BOR contract, thus reducing the overall anual cost.
The decision whether to rent 2,000 af or 4,000 af creates a $42,000 varance in purchased water
cost. 2010 could agai be a year when it wil be prudent to rent the additional 2000.. af and hold
the BOR space in the event drought conditions worsen in 2011 and rental water is not available
at a reasonable price. The Company has projected costs in the pro forma period of$168,854
which is less that the historic high of$186,537in 2005.
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
FIFTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
REQUEST NO. 125:
Please explain how UWI determines each year how much water to rent from the Basin 63 Rental
Pool and how much to lease from the State Water Ban. Approximately when does UWI make
this decision?
RESPONSE NO. 125:
Basin 63 Rental Pool is surface water only and is used at the Marden and Columbia water
treatment plants which have an anual production of approximately 13,000 acre feet (at). The
Basin 63 Rental Pool portion of this total capacity wil range from 2000 - 4000 af. Determining
how much surface water to rent through the Basin 63 Rental Pool and the timing de.csions by the
Company have already been supplied in response to Production Requests No. 123 and 124.
Currently the State Water Ban (SWB) is only used by the Company to provide a method to
anually transfer groundwater between wells used by the Company. Some wells can be pumped
more if transfers are approved in advance. The State Water Ban is the mechansm which
accomplishes this transfer. Applications are typically prepared in April and approved in May by
the Idaho Deparent of Water Resources. In 2010, this amount is estimated to be 350 af at a
cost of $490 and wil be used at Fisk and Oregon Trails well sites.
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
FIFTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Gregory P. Wyatt
REQUEST NO. 140:
RESPONSE NO. 140:
The Conipany has no data to confirm numbers of conservation kits installed by customers.
However, both the trigger shut-off valve and hose timer devices are simple screw-on unts that
are easy to attach to a common garden hose or outside spigot. Because of their installation
simplicity the Company believes that most, ifnot all, devises have actually been installed by
customers.
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
FIFTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/SponsoringWitness: Gregory P. Wyatt
REQUEST NO. 145:
In his testimony, Mr. Wyatt indicated the Company has two pilot projects for automated
metering systems. Please provide furter iIlformation on these projects, including original date
of inceptioIl, ongoing results or determinations, comparsons with other available systems, and
costbenefit analysis, etc.
RESPONSE NO. 145:
The Company has ongoing a single pilot project in which it is evaluating two different vendo(s
automated metering systems. . The project ""as initially conceived in 2007. Enclosed are four
PDF files which contain the four Fixed Network Pilot Project reports to date which describe the
project.and its progress. The Company doesnot.have any comparsons with other available
systems. Because the pilot projçct is still ongoing, no cost benefit analysis has yet been
developed.