20091223UWI to Staff 169-183.pdf

McDevitt & Miller LLP
Lawyers
[phone]
[phone] (Fax)
Via Hand Delivery
Jean Jewell, Secreta
Idaho Public Utities Commssion
472 W. Washigton St.
Boise, Idao 83720
420 W. Bannock Street
P.O. Box 2564-83701
Boise, Idaho 83702
Re: Case No. UWI-W-09-01
General Rate Case Fili
Dear Ms. Jewell:
HECEI f)
L009 DEC 23 Pr1 l: 40 Chas. F. McDevitt
Dean J. (Joe) Miler
December 23, 2009
Enclosed for fig, please fid thee (3) copies of United Water Idao's First Response to
Commssion Staffs Eighth Production Request Nos. 169, 170, 171, 172, 173, 174, 175, 176, 177,
178,179, 180, 181, 182, and 183.
Kidly retu a fie staped copy to me.
DJM/hh
Encl.
Very Truy Yours,
McDevitt & Mier ll~LDean J. Mier
ORIGINAL
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(imcdevitt -miller .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
FIRST RESPONSE TO
COMMISSION STAFF'S EIGHTH
PRODUCTION REQUESTS
United Water Idaho Inc, ("United Water") by and through its undersigned attorneys,
hereby submits its First Response to the Commission Staffs Eighth Production Request Nos.
169,170,171,172,173,174,175,176,177,178,179,180, 181, 182, and 183.
DATED this1-1. day of December, 2009.
UNITED WATER IDAHO INC.
BY:~ il
ean J ~ Miler '
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 FIRT RESPONSE TO COMMISSION STAFF'S EIGHTH
PRODUCTION REQUESTS. 1
CERTIFICATE OF SERVICE
I hereby certify that on thedêay of December, 2009, I caused to be served, via the
methodes) indicated below, tre and correct copies of the foregoing document, upon:
Jean Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise,ID 83720-0074
j j ewell (ipuc. 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(ihotmail.com
Hand Delivered
U.S. Mail
Fax
Fed. Express
Email
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UNITED WATER IDAHO INC'S FIRST RESPONSE TO COMMISSION STAFF'S EIGHTH
PRODUCTION REQUESTS- 2
UNITED WATER IDAHO INC.
CASE UWI- W -09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Kevin Doherty
REQUEST NO. 169:
Please calculate the change to the Company's fied revenue requirement that occurs as a result of
the updates to actuals for Plant in Service requested in Production Request Nos. 160 to 166.
Please identify and include within your response all amounts that would change as a result of
updating Plant in Service forecasts to actuals. If an amount such as taxes (deferrals or expenses)
does not change, please provide a detailed explanation as to why the amount would not change
as a result of updating Plant in Service forecasts to actuals.
RESPONSE NO. 169:
Based on discussions between Commission Staf and United Water representatives, the Paries
have agreed that the updates requested by the above referenced Production Requests may be
provided after the close of the calendar year December 31,2009. United Water has agreed to
provide the requested updates not later than Januar 8, 2010.
UNITED WATER IDAHO INC.
CASE UWI- W -09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Kevin Doherty
REQUEST NO. 170:
Please provide all workpapers and underlying documentation supporting the Company's
response to the preceding request.
RESPONSE NO. 170:
Based on discussions between Commission Staf and United Water representatives, the Paries
have agreed that the updates requested by the above referenced Production Requests may be
provided after the close of the calendar year December 31, 2009. United Water has agreed to
provide the requested updates not later than January 8,2010.
UNITED WATER IDAHO INC.
CASE UWI- W -09-01
EIGHTH PRODUCTION REQUEST OF TH COMMSSION STAFF
Preparer/Sponsoring Witness: Kevin Doherty
REQUEST NO. 171:
Please provide the files in Excel format with formulas intact for all items in response to the
preceding two requests.
RESPONSE NO. 171:
Based on discussions between Commission Staff and United Water representatives, the Paries
have agreed that the updates requested by the above referenced Production Requests may be
provided after the close of the calendar year December 31, 2009. United Water has agreed to
provide the requested updates not later than January 8,2010.
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Charles E. Loy
REQUEST NO. 172:
Please prepare Adjustment 1 (Exhibit 11, Schedule 1, Adjustment 1: Adjustment to Payroll
Chargeable to Operations and Maintenance) based on pay rates and employee coùnts as of
December 31, 2009. Include the pro forma workpapers 11.1.1, 11.1.2, 11.1.3. If there are any
other adjustments afected by this adjustment, please include those affected adjustments and
workpapers with this response.
RESPONSE NO. 172:
The Company has updated its Exhbit 11, Schedule 1, Adjustment 1 and all associated
workpapers with the latest known inormation as requested. The Exhibit and associated
workpapers are included in electronic format with this response. Gross payroll drops $30,371
from $5,587,860 to $5,557,489. The net payroll chargeable to Operations and Maintenance
decreases $22,280 from $4,099,254 to $4,076,974. The reasons gross payroll is decreasing are
enumerated as follows:
1. The Company filed the Accounting Manager position on August 03,2009 at a salar of
$67,891 or $2,891 more than the $65,000 estimated in the initial filng. This also impacts
the 2010 pro forma increase by an additional $116.
2. The Company hired a new Accounting Clerk on November 11,2009 to fil a short term
vacancy. The gross pay impact is a decrease of $1,237.
3. The Company is in the process of hiring a new Customer Service Representative to fil a
recent vacancy. The differential between the old salar and the new is expected to be a
decrease of $9,532.
4. The Company filed a Utilty Person position on December 7, 2009 to fil an existing
vacancy. The original filng contained an inaccurate pro-forma hourly rate of $18.30. The
correct pro-forma rate per the Bargaining Unit contract is $19.20, a $1,872 increase.
5. The Company filed a vacant outside Customer Service position from within on October
3,2009. The pay differential from the old to the new employee is $0.45 per hour or an
anual increase of $936.
6. Due to an internal transfer indicated above, the Company has chosen an internal
candidate (Meter Reader) to fil the vacant Utilty Person position. This transfer wil
become effective as soon as the hiring process is completed on a new Meter Reader. The
pay differential from the old incumbent employee to the new candidate is a decrease of
$11,690.
7. An existing outside Customer Service employee has elected to retire Januar 1,2010. It is
anticipated this position wil be filed by a new employee early in the new year. The
differential between the retiring employee and the new employee is anticipated to be a
decrease of $12,688.
8. The new Meter Reader indicated in #6, above, wil replace the prior Meter Reader at a
savings of $0.50 per hour or an anual total decrease of $1,040.
Other adjustments that are afected by the change to payroll are as follows:
Exhibit 11, Schedule 1, Adjustment NO.4: Adjustment of Employee Health Care Expense and
Benefits. When the Company prepared its direct case, pricing data from late 2008 was utilzed
and the aray of employee medical, dental and vision coverage choices from November 2008
was used. To compensate for the stale information, the Company used a price escalator of 10%,
as provided by Human Resources, to increase pro forma medical costs. The Company now
knows actual Company and employee costs for 2010 as well as employee coverage choices. As a
result pro forma Health Care Expense & Benefits are increased from $831,250 to $887,966, an
increase of $56,716.
Exhibit 11, Schedule No.3, Adjustment No.1, FICA taxes, decreases due to the downward
adjustment in payroll. Pro Forma FICA taxes as filed were $420,071 and are updated to
$417,747. This represents a decrease of $2,324.
Exhibit 11, Schedule No.3, Adjustment No.3, SUTA taxes actually increases despite the small
downward change in payrolL. The case was fied with base SUTA wages of $33.200 and a tax
rate of 0.447%. The Company has recently learned from the Deparment of Labor (see attached
fax from IDOL) that base wages for 2010 are increasing to $33,300 and United Water Idaho's
tax rate wil be 0.96% in 2010. This increase SUTA expense from an as filed $14,695 to an
adjusted $31,568, an increase of $16,873.
Exhibit 11, Schedule 1, Adjustment NO.6: Adjust Payroll Overheads Charged to Balance Sheet
. Accounts incorporates the above changes. The net change is a $21,160 increase to expense.
f-
í2/22/2009 18: 12 FAX [phone] DEPT OF LABOR 19001/001
TX11 0000035505 FEIN 820101565 PROD LEC0760PREV FEIN 000000000 EMP SSN . 12/22/2009
EMPLOYER-NAME ~ ALPHA KEY UNITE 15: 04: 02 : 73
DBA-NAME UNITED WATER OF IDAHO DBA-CD 0 PHONE [phone]ADDRESS-1 PO BOX 66744 ST LOUIS MO 631666744ADDRESS-2 8248 W VICTORY RD BOISE 10 837090000
ADDR-I-CD 4 SPEC-HNDLG 0 TYPE-COV-CD 00 CONTRIBUTOR-CD 0
ADDR-2-CD 9 TYPE-OWNER 2 WAGE-REPORT 0 DELINQUENCY-IND 0
494150SIC/OWNERSHIPCOUNTY-CD 001
NAICS CODE 221310~ FLO-REP-NO
RATE ~ FOR YEAR 2010 FLD-ASN-NO
LIABILITY-DATE 01/01/1936 PRED
SUCC
00/00/000000/00/000000/00/0000
o01/01/1936
.00
BANKRUPT -DATE
STATUS-ISSUE-DTE
REINSTATEMENT -DATE
ACCT -STATUS-CD
ACCT-STATUS-DTE
CURR-ACCT -BALANCE
045 AUDIT-ASSIGN 00/00/0000
00000000 AUDIT-COMPLETE 00/00/0000AUDIT-ERROR 0
0000000000
0000000000 INSTALLMENTSDUE-DATE 00000000PMT-CD 0PMT-AMT .00ANT-DUE .00PMTS-REM 00BALANCE .00
UNITED WATER IDAHO INC.
CASE UWI- W-09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/SponsoringWitness: Gregory P.Wyatt
REQUEST NO. 173:
Please provide the United Water Idaho specific parameters for the Short Ter Incentive.Plan
(STIP). Please separate out the objectives into financial and personal objectives. Please provide
any and all criteria upon which the incentive and bonus plans are based. Please break out each
objective or. criteria by its percentage weight.
RESPONSE NO. 173:
Attached is the UnitedW'ater ShortTerm Incentive Plan (STIP), which explains the pareters
for the Plan. Also attached is the STIP Incentive Weight Char which provides the weightings
allocable for financial and personal objectives. The Idaho section has been highlighted.
United Water
Short Term Incentive Plan (STIP)
I. PURPOSE
The Short Term Incentive Plan (STIP) is an annual compensation plan that supports United
Water's business objectives by:
· Providing an annual incentive strtegy tht drives performance towards objectives
ctitical to creating shareholder value.
· Offering competitive cash compensation opportnities to all eligible employees.
· Awarding outstanding achievement among employees who can directly impact
United Water's results.
· Providing cash awards for both qualitative and quatitative results.
· Providing cash compensatioiiopportnities for making sound business decisions that
impaCt the company's financial performance and the overall succes of Suez.
II. ELIGfflLITY
All active exempt employees in salargrades12and above inc1udingexpatrates are eligible to
participate in STIP ifnot covered.byanother annual incentive plan. Employees must be hired or
promoted into STIPeligible positions by the first pay period of the fourt quarer of the plan
year, iii order to be eligible for a STIP award for that plån year..
III.AWAR OPPORTUNITIES
Employees are assigned a target award based on their job/salary grade; Target awards for
expatrates wil be based on their Suez compensation plan unless otherwise agreed to by Suez.
The tagetawa~d. is established at market competitive levels and is expressed. as a percentage of
base salary. Target awards wil be prorated for part.time employees. Paid awards may range
from 0% to 200%ofthe target award based on achievement of financial objectives and personal
objectives. Should any events occur during the performance year that in the opinion of the
management of United Water materially affect the performnce targets set, then United Water
may recommend tothe Compensation Advisory Committee and Suez that an adjustment be made
to any final payment.
IV. PERFORMCE MEASURES
The STIP program is based on two different measures of performance that are critical to United
Water's success, financial and personal performance.
Page 1 UnitedWater 1('.. '
Financial
Each year, Suez Environment and United Water's Compensation Advisory Committee determine
financial measures and target performance levels that wil form the basis fór measuring success
under STIP. Each objective is assigned a weight based on the employee's job/salary grade.
Personal
As a part of the Performance and Development Review (PDR) process, employees have specific
annual objectives that support the attainment of departental or organizational objectives. These
objectives form the basis for the personal. objective porton of STIP. Managers. have the
flexibilty to set the weight of each personal objective in accordance with the plan's guidelines.
v. PAYOUT SCALES
Every level of company, business segment/departent and individual performance earns a
different STIP payout. As United Water and its employees meet or exceed their objectives the
payout will grow as shown on the below payout scales.
Financial Objectives
No incentive wil be paid for results at or below 80% (theshold) of an objective. An incentive
payment equal to two times the target can be earned for results equal to or grater than 120% of
objective. A linear progression applies for determining the payout % between theshold and
maximum.
Personal Objectives
0%
1%-90%
91%,.110%
111% -150%
151%- 200%
At the end ofthe performance year, managers wil evaluate their employee's personal objectives
and assign a payment percentage based on the level of performance achieved. Personal
objectives that are financial indicators should be measured using the scale for financial
objectives.
Page 2 UnitedWater *"-. .k
Sample Award Calculation
Key Assumptions: Base Salary = $82,000 Individual Target = 15% or $12,300
Corporate Financials weight 30% and Personal Objectives weight 700/.
EBITDA
Free Cash Flow
Net Current Income
Total Financial
(% Total STIP)
Personal Ob'ective #1
Personal Ob'ectve #2
PersonalOb" ective #3
Personal Ob'ectve #4
Peronal Ob'ective #5
Total Personal
% TotalSllP
100.0%
120.()%
110.0%
70.0%
100.0%
34%
33%
33%
100%
30"1
25%
20%
20%
20%
15%
100%
70%
25.0%
24.0%
22.0%
14.0%
15.5%
100.50/.
Total Earned Award Calculatin
Earned STIP
Objective A!X Weight Total
Finanèial 73.1%30°/í 21.9%
Personal 100.5%70%70.3%
Award Payment Calculation
--Individual Target (15%)
Total Earned AWard~. "!'
STIP Award Payment
$12,300'X; mv.
$11,341
Vi. PLAN PAYOUTS
Employees who are on the active payroll on December 3 i st of the pedormance year wil be
eligible to receive an award. Employees who are terminated for' cause or gross misconduct or
who vo1untan1y resign pnor to the end of a plan year wil not receive a STIP award.
STIP awards wil be prorated for eligible new hires based on the number of days on payroll the
year of hire. Employees whose target award may have changed dunng a plàn year due to a job
change wil receive a prorated award based on number of days in each job.
Page 3
United Water 1('.. .
. ,
Employees who are eligible and choose to retire prior to the end of any plan year wil receive an
award that is prorated to reflect the number of days actually worked during the plan year. This
also applies in the event of death, disability (defined as any consecutive absence of 60 days or
more), leave of absence, inter-company transfers or a reduction in force. In the event of
disability the pro-ration wil apply to financial targets only and not personal objectives.
Payments wil be made when normally paid in the 1 sl quarter of the year following the
performance year.
STIP awards are based on year-end salary. and are paid in lump sum during the first quarter
following the end of the performance year. STIP award payments cannot be deferred.
STIP awards are treated as ordinary income for tax purposes. Taxes wil be withheld and are
owed in the year awards are paid.
VII. ADMIISTRTION
United Water's Compensation Advisory Committee, Suez Environment and the CEO of United
Water admjnisterthe STIP program. The interpretation ofthe application of the plan doctnent is
at the sole discretion of the company and the CEO's decision wil be binding. United Water's
Compensation group manages program administration.
Important
Neither STIP, nor any action taken in conjuncton with this plan, shall be constred as giving to any emloyee
the right to be retained by United Water.. The statements in this document do not consttute a contract relative
to compsation treatment and are not intended to create any contractual rights, either expressed or implied,
between United Water and its employees. Cerain situations may require compesation treatmt different thanthe practices expressed here. The policies, practices, and procedures descbed in this document tny be
changed, altered, modified or deleted at any time, with or without prior notice by United Water. The STIP may
be modified or terinated at any time. These actions may affect present and future eligible employees.
Page 4
UnitedWater .-
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UNITED WATER IDAHO INC.
CASE UWI-W-09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
PreparerlSponsoring Witness: Gregory P. Wyatt
REQUEST NO. 174:
Please provide the United Water Idaho specific parameters for the Bargaining Unit Incentive
Plan. Please separate out the objectives into financial and personal objectives. Please provide
any and all criteria upon which the incentive and bonus plans are based. Please break outeach
objective or criteria by its percentage weight.
RESPONSE NO. 174:
Attached is the United Water Non-Exemptlnion Bonus Plan which explai the parameters and
objectives criteria for the Plan. The Plan description separates out the objectives into financial
and non-financial objectives, which are 50% financial and 50% non-financiaL.
Non-ExemptlUl1l' Bonus Plan
Regulated Segment
2007
;),~.Q United Water. -s'-ez
.'.
Non,-ExempWnion Bonus Plan 2007
PURPOSE:
For the 2007 performance year, a bonus program has been designed for non-
exempt/union employees in the Regulated Segment The program support United
Water's business ideals by recognizing the efforts of non-exempt employees in
contributing to the ,stl~~'d()ltI. 8tlsines$Uniftl' finane~réSll~custom.,serice
satisfactoii,..wate,.qualiltlcompliance and,safe~. initiatisoM
EUf3IBltJ:
All. acte non-exempt/unioo regular employees, part-time and full-time, are eligible to
partcipate in the Bonus Program. Employees must be hired by the first pay period of
the fourth quarter of the plan year, in order to be eligible for an award for that plan year.
AltABD.O&lÐ.1'UNl~:
Thetargta\Y.fØ~ntnx.mPWniòn.mPfoy..i.iSi't.5%... B~s~d ,on the, percentage
achieved for each of the measurements, .R8Y_:;~.G'~'1'~'~:Qtlh_..tlfet (as
in attched Payout Spal&). Payment is calculat8Ø based on bonus accomplishment
multiplied by the employee's total productve earnings for the calendar year.
PI'~¡iimJìrat.'defl_.Mì Earnings for all hours an employee is paid
for (ineluding regtJlar time, overme, rest time; stand-by, emergencYt holidays
(incl... ,floaters),. vacation, bere~vement, andie jury duty) excluding' sick time
(PaiQlunpaid), STD, LTD, ,WOrkets Compensation; personal time (unpaiq): .and
FMl time.
PERfORMANCE MEASURES:
perf0nnanc Measures are subject to change from one plan year to the next and .are at
the discretion of senior management and the,.planCldniinistratci. ,All p~orClnce...is.t~
be measured against proposed business unit targets, on a,~."i:~II;'¡f1â$l.fõ
b~.dptrpo.l.. The program is based .on the following measurements for each
Business Unit: o EBtl'DA~ 50,.
o SAfllV GOAES 25%
o CUSl'OMERSERVlCe;OOAI"S&. 25~
Business Unit EBITDA - is the financial indicator used by United Water for all
bonus programs. EBITDAi = Earnings (Revenue - Expenses) before Interest,
Taxes, Depreciaton and Amortzation. EBITDA is a commonly used metrc to
evaluate profitability.
Safety Goals: (Each weighted equally)
Recordable ancl. Fteuency. Rates
Severity Rate
Trainil1g.HoursPer Employe,
Page 1 of5
..
Non-ExempVUnion Bonl,S Plan 2007'
Customer Service. Goals: (Each weighted equally) For business units that
cannot currently measure and report on ASA and abandoned calf rate, the
remaining two customer service meties wil be weighted equally.Av~ersfilløfanswrçalls
Abandon...ca,ratê
RegYlatQf,ÇQglaint$,~.Q; t pelil.('QQ~t9mElr;
Act~vrEl¡a9Jl~
COMlllNcariOIlEll
BusinèsS Unit Modifier. This mocfi;ca;ad.~ølit~aPnfÎi,l.RJQ,,\Q~6~lto the bonus
target, based o~the cornPJiance results. Iarg.,isQ~'.lQQ~~9mQU~i;ce in sampling
and testing. Thecompllanceperformance measures are: .... .. .
Processl Pênnit.Violations under operatíonal control
samplir\lolatlón$
ReportingViolätlons
Notifiation Violations
ArV¡orãliJiI.'rftiatJlt~llt.sûreM¡ñfcr¡téì'iwæ'affçttht:bu~iMSsc~mø_~i~:
CompU¡ance Bonus
Violations Target
Modifier
0 +0.5%
1 -0.25%
2 or more -0.5%
PAYOUTS:
Et~...,)lidJ~3..lf,9Dk1llJ~fl~Xl."P..,*fQl.iilialbø'3't~Ql;_'PI~y.af,.WiUbeii,Elli9i~l'ii~.rEl.~lt.aØlrawal' Employees who ..are terminated for caU$8 or gross
misconduct wil' not recive an award regardless. of when.' termination occurs.
ErnploYEle~Vl~(). voiunt~ril! resig~priorto.. the. end., of~epian~:~r ,'WiU n~t r;cei;e ,an
award. et~...li._,ma~.Wbefl.....nmIl¡.... ~,initth_,1~!,....qLllt...QI.the!....year
followingt, the; pElrtanee YElClrt,.' Awards are treated as ordinary income for tax
purposes. Taxes win be withheld and are owed in the year awards are paid.
PA'lOUT SCALE:
%01 Payment
AcmDlishment %
90%0%
95%50%
100%100%
105%112.5%
110%125%
Page 2 of5
l ., ,.
Non-Exempt/Union Bonus Plan 2007
AWARD EXAMPLES:
I.Productive Earnings
Target
Modifier (+1-) 0 violations
Modified Tar et
$50,000
$ 750
+$ 250
$1,OC)O
EBITDA
Customer Service
Safe
Total Earned
Award.
Totat Payout $
(Modified Target X
Award %
110.0%
110.0%
110.0%
125.0%
125~O%
125.0%
50%
25%
25%
62.5%
31.25%
31.25%
1250/0
$1,250
II.Productive Earnings
Targ..
Modifier (+1-) 1 violatio
Mödifl.Tar et
$50,000
$ 750
-$ 125
$ 62$
$625
II.Prodlctve Earnin.
Targ,.
Modifier (+1-) 2violations
MOdified'Tar et
$50,000
$ 750
-$ 250
$ SOc)
EBlTDA
Customer ServiCè
Safe
Total Earned
Award
Total Payout $
(Modified Target X
Award %
95.0%
95.0%
95.0%
50.0%
50.0%
50.0%
50%
25%
25%
25.0%
12.5%
12.5%
50.0%
$250
Page 30f5
~. .'".,
NOlExemptlUnion Bonus Plan 2007
ADMINISTRATION:
United. Watet$ Human Resources departent with the Compensation department and
the Executive Management Team wil administer this program. The interpretation of the
application of the pla.n document is at the sole discretion of the company and the Chief
Operation Offcer's... decision will be binding~ United Water's Human Resources
departent manages program administration./
Bonus payments are not considered eligible earnings for calculation of pension benefit
or 401 K deferrals and company match as per plans' provisions.
Page 4 of5
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Gregory P. Wyatt
REQUEST NO. 175:
Please provide the United Water Idaho specific parameters for the Non-Exempt Bonus Plan.
Please separate out the objectives into financial and personal objectives. Please provide any and
all criteria upon which the incentive and bonus plan are based. Please break out each objective
or criteria by its percentage weight.
RESPONSE NO. 175:
Attached is the United Water Non-Exempt Bonus Plan which explains the parameters and
objectives critera for the Plan. The Plan description separates out the objectives into financial
and non-financial objectives, which are 50% financial and 50% non-financiaL.
Non-Exempt Bonus Plan
Regulated Segment
2007
')4~7QUnited Water.f. _..~.__..____...._M. -s""ez
l'
Non-Exempt Bonus Plan 2007
PURPOSE:
For the 2007 perfrmance year, a bonus program has been designed for non-exempt
employees in the Regulated: Segment. The program supports United Water's business
ideals by recognizing the, effort of non~exempt employees in contributing to the
succs~Qf~,",.' eU$lnèØlJllif'I,"ffñäncial;resullS;i,custØnl'.$eNicEtsatišfaCton;' wate,
qLJalityl~~i.nçEt andsafe~ initiatives.:.
ELIGlSII.D!:.¡"
All active non-exempt regular employees, part-time and full-time, are eligible to
partcipate in the Bonus Program. Employees must be hired by the first pay period of
tle fourt quarter of the plan year, in order to be eligible for an award for that plan year.
AW.R.,OPPÐFl"~~l'!,:,:".,.,:":::":.,,.,,
The.targ.~awaf(),no".exePf!ènlPJÐY¡~;il~. Based'on.thEt perce~tage achieved
for each of. the ',measurements, paYQU1;csft b.tl;~,12S.:pe~'QI:tt.;;i.rget (as in
attched Payout. Scale).. Payment is .calculãted based on bonus accomplishment
multiplied by the employee's total productive eamingsfor the calendar year.
fr9~H~tlßllln.,";,dêtm.a$: Eamings forallhoursanemployee is paid
fei (including regular time, overtime, rest time, stand..by. emergency, holidays
(inct. "floaters), vacation., bereavement, '. and jury duty) excluding' sick time
(paid/unpaid), STD, L TO, Worker's Compensation,., personal time (unpaid) and
FML time.
PERFORMANCE MEASURES:
Performance Measures are subjeçt,to change from one plan year to the next andare"at
theidiscretion of senior management and the plan administrator. ,~l perfrm~nce is tobe measured against proposed. business unit targets on aa.uláWØiC'ßD'bJsi~tq
l;Ql'.::øti~es. The program is based on the following measurements for each
Business Unito ESl41'.. aOllio SAF'E1"GÖÂLSi 25~"
o CUSl"OMER;,SfERVlÇ~ GOALS 25%
Business Unit E81TDA - is the financial indicator used by United Water for all
bonus programs. EBlTOM = Eamings (Revenue - Expenses) before Interest,
Taxes, Depreciation and Amortization. EBITDA is a commonly used metric to
evaluate profitabilty.
Safety Goals: (Each weighted equally)
Recordable' and Frequency Rate$'
Severi Rate
TrailiingHours per Ernployee
Page 1 of 5
..'
Non..Exempt Bonus Plan 2007
Customer Service Goals: (Each weighted equally) For business units that
cannot currently measure and report on ASA and abandoned call rate, the
remaining two customer service metrics wil be weighted equally.
Averåg.s~of'an$we..caii~'~
At)àndonec~~'ratEl
RêgulalorycornpJaints 0.1 pefl' 1, 000 customersActalreadta.
COMPtlANelaMODlllERJ
BUsiness Unit Modifier:. ThismQdifieF'cali.aØdqr"sQl;trlçt.up;tø¡a:&~ to the bonus
target, based on the compliance results. Targelil'Q:Q~100%. COO1PUãnGf in sampling
and testing. The compliance performance measures are:
Process! Permit violations under operational control
Sampling. ViolatiOl\'
Reporting Violations
NotiflcatlonViolations
A violation in anyoftfe: compliance measurement critria will aff th buine_ø
ccnnpuanea, mo_outll-' beJo . .
.
Compliance Bonus
Violâtionš Target
Modifier .
0 i.'. +0.5%
1 -0.25%
2 or more -0.5%
PAYOUTS:e~"WÐôar.éÆ.m.r.a$tý.På:il'.j~Øl.PI;~i..i~Qt~.~..IlØW.
b.;eligi.ble(..lQ;reçiva¡..aQJ~Wa~tl~"':.,.Employeeswho are t~rminated fOr cause or gross
misconduct will not receive" an award regardless of . when termination occurs.
Employees who VOlUntarily resign prior to the end of the plan. year wil not receive an
award., Pa~(lneat$;¡wll'.~¡m..¡tWl)~'n()mílll~, p~i¡;jig'i.t~\t..!~l~¡'\~o...;th.;(y,.r
folJoWing,.the. perforance.!.yel~ Awards are treated as ordinary' income for. tax
purposes. Taxes wil be withheld and are owed in the year awards are paid.
PAYOUT SCAlE~..
% of Payment
Accomplishment %
90%0%
95%50%
100%100%
105%112.5%
110%125%
Page 2 of5
1
Non-Exempt Bonus Plan 2007
AWARD EXMPLES:
i. Productive Earnings
Tårget
Modifer (+1.) 0 violations
Modified Tar et
EBlTDA
Customer Service
Safe
Total Earned
AWard
TotalPaxout $
(Modified. Target X
Award'*
110.0%
110.0%
110.0°/0
125.0%
125.0%
125.0%
50%
25%
25%
62.5%
31.25%
31.25%
125%
$2,187.50
II.Producte Earnings
Target
Môdifier(+i.) 1 violation
Modified Tarat'
$50,00
$ 1,500
-$ 125
$ 1375
EBlTDA
Custoni Service.
Safe
Total Earned
Award
Total Payout $
(Modified Target X
Award %
$1,375
m. ProdUcte Earnings
Tål'get..
Modifer (+1-) 2. violations
MódifiedTar et
EBITDA
Customer Service
Safe
Total Earned
Award
Total Payout $
(Modified Target X
Award %
95.0%
95.0%
95.0%
50.0%
50.0%
50.0%
50%
25%
25%
25.0%
12.5%
12.5%
50.0%
$625
Page 3 of5
, "
Non-Exempt Bonus Plan 2007
ADMINISTRATION:
United Water's Human Resources department with the Compensation departent and
the Executive Management Team wil administer this program. The interpretation of the
application of the plan document is at the sole discretion of the company and the Chief
Operating Offcer's decision wil be binding. United Waters Human Resources
departent manages program administration.
Bonus payments are not considered eligible earnings for calculation of pension benefit
or 401 K deferrals and company match as per plans' provisions.
Page 4 of5
UNITED WATER IDAHO INC.
CASE UWI- W -09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Gregory P. Wyatt
REQUEST NO. 176:
When are each of the bonus or incentive plans paid? Please break down the response by each
plan tye.
RESPONSE NO. 176:
The Short Term Incentive Plan (STIP), the Non-Exempt Bönus Plan and the Non-Exempt/nion
Bonus Plan are generally paid closely together in March. In 2009, the STIP and the Non-Exempt
Bonus Plan payments were paid March 11,2009. While the Non-Exempt/nion Bonus Plan
payments were paid March 19,2009. In 2008, the STIP was paid March 3, 2008 while the Non-
Exempt Bonus Plan payments and the Non-Exempt/nion Bonus Plan payments were paid
March 12,2008.
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Gregory P. Wyatt
REQUEST NO. 177:
What is the time period that each incentive or bonus plan covers? Please break down the
response by each plan type.
RESPONSE NO. 177:
The Short Term Incentive Plan, the Non-Exempt Bonus Plan and the Non-Exempt/nion Bonus
Plan all cover a calendar year period.
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Charles E. Loy
REQUEST NO. 178:
What is the amount of bonus or incentive plan that is included in the test year (June 1,2008
through May 31, 2009)? Please break down the response by each plan type.
RESPONSE NO. 178:
The test year contains Short Term Incentive Plan payments of$157,873; Non-Exempt Bonus
Plan pàyments $13,538.80 and Non-Exempt/Union Bonus Plan payments of$40,571.16.
UNITED WATER IDAHO INC.
CASE UWI- W-09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Pteparer/Sponsoring Witness: Charles E. Loy
REQUEST NO. 179:
What is the amount of bonus or incentive plan that is included in the Pro Forma Adjustment 1
outside of the test year? Please break down the response by each plan type.
RESPONSE NO. 179:
Pro Fonna Adjustment 1 contains the following amount of bonus or incentive plan
compensation: Short Term Incentive Plan payments of$162,873; Non-Exempt Bonus Plan
payments of$14,538.80 and Non-Exempt/nion Bonus Plan payments $41,571.16
UNITED WATER IDAHO INC.
CASE UWI- W -09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Gregory P. Wyatt
REQUEST NO. 180:
Please provide details on future milestones and goals for individual conservation programs;
include both supply side programs and customer demand side programs.
RESPONSE NO. 180:
The milestones and goals for the individual conservation programs as approved by the Idaho
Public Utilties Commission are found in the Conservation Plan itself and the Commissions'
Order No. 30305 and 30305 ERRATA.
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Gregory P. Wyatt
REQUEST NO. 181:
In a preliminar review the spreadsheet provided in response to Production Request No. 136
regarding the United Water Shares program indicates that some customers may have been
provided more than the $50.00 maximum. Please provide complete financial detail on the
United Water Shares program on a monthly basis for the years 2006 - 2009 to date in an
electronically executable format with formulas intact. Please provide fuher explanation of the
program details including: how customer contrbutions were distrbuted among recipients,
maximum amount of benefits, any changes to the program since initiated and when the change
was initiated.
RESPONSE NO. 181:
The response to Production Request No. 136 contained data gathered from two different sets of
data; the fuding data and the customer data. Accounting maintains the funding data and it is
reported on a fiscal calendar month with a cutoff typically around the 22nd of each month.
Customer Service maintains the customer data and it is reported on a tre calendar month. There
are no other data files in electronically executable format other than what the Company already
provided in its response to Production Request No. 136. In accordance with the original program
guidelines, the maximum amount of benefit a customer can obtain is $50.00 each year. No
individual customer has received a UW Cares benefit in excess of $50.00 in any year. The
varance in timing of the two sets of data mentioned above account for the apparent discrepancy
referenced in this Request. There have been no changes in the program since it was initiated.
Customer contrbutions are rolled in to the total Company contrbutions and are not distrbuted
directly to customers. They serve to offset Company contrbutions.
~
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer: Patrcia Foss
Sponsoring Witness: Gregory P. Wyatt
REQUEST NO. 182:
Please provide a sample copy of a bil for those legacy customers for which the Company stil
collects the Leakguard fee. Provide additional detail regarding the number of customers being
billêd for Leakguard, how those transactions and the monies collected are handled, and how the
Company processes the accounts.
RESPONSE NO. 182:
A water bill with the LeakGuard charges is attached.
Customers who have the LeakGuard coverage biled on their water bils ar only those who were
enrolled in the program prior to its sale to Home Service. No new LeakGuard customers have
been added to United Water Idaho's biling since the sale. The LeakGuard charge is a flat-rate
fee every two months and is biled as a separate line item. It is described as "LeakGuard" on the
water. bil.
As customers pay their bils, monies are applied to the separate bil componerlts. The water
portion ofthe bil is always satisfied first, then taxes, and finally LeakGuard. At month-end,
reports are generated that identify how much was received and booked against the LeakGuard
bil component. That amount is moved via ajouma1 entr from United Water Idaho to United
Water LeakGuard. Home Service is then paid from the United Water LeakGuard business unit.
United Water Idaho currently bils 3,570 LeakGuard accounts.
'"
,/
USAGE HISTORY
UNITEDWATE
Bi-Monthly usage in hundred cubic feet Billng Date:
Account Number:
10/19/09
06000999341402
9 Previous Balance
Payments Through 10/19/09 Thank You
Balance Forward
Current Charges Due 11/08/2009
$219.52
$221.00CR
$1.48CR
$158.67
12
Aug-oct Oct-Dec Dec-Feb Feb-Apr AfJr~un Jun-Aug Aug-Oct
SERVICE TO:SERVICE ADDRESS
047683339 08/18/09 10/15/09 58 399 490 91 CCF ACTUAL
EQUIVALENT TO 68,068 GALLONS
SAFE DRINKNG WTR FEE
LEAKGUARD
I TOTAL CURRENT CHARGES
W18
25.7586 CCFê $1.2112
65.2414 CCF ê $1.5141
WATER CHARGE SUBTOTAL
CUSTOMER CHARGE
$31.20
$98.78
$129.98
$16.21
$0.50
$11.98
$158.67
SEE REVERSE SIDE FOR IMPORTANT ACCOUNT INFORMATION
"*Donateto UW Cares, and help those in our community who need assistance paying their water bills. Contributions are taxdeductible, and 100 percent of your donation goes to helping families meet their most essential need - water. United Water
will match all customer donations up to $20,000 annually. Donations can bemailedtoUWCares.P.O.Box190420.Boise.ID
83719-0420. Thank you for your generosity.""
Save a stamp and go paperless today! Log on to ww.unitedwater.com or call Customer Service to find out more information
and to enroll in eBiling.
"For a small convenience fee, you can now pay your bill any time by calling 888-608-6690."
1 200 RE 1600 PLEASE DETACH HERE AND RETURN THE BDTIOM PORTION WITH YOUR PAYMENT IN THE RETURN ENVELOPE PROVIDED. 060 1308 MAROa 091209
--------------------------------------------------------------------------------------õã-1308 MARO0921200
Account Number: 06000999341402Balance Forward $1.48CR
Current Charges Due 11/08/2009 $158.67
UNITED WATER8248 West Victory Road
Boise, ID 83709
SERVICE ADDRESS:5354 SilVER SPUR ST
BOISE 10
D Please check this box if you have made any
changes to the information on the reverse side.
_.__ ~K::~ L
UNITED WATER IDAHO
PAYMENT CENTER
PO BOX 371804
plnSBURGH PA 15250-7804
EBPP 129
BOISE 10 83709-5956
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Gregory P. Wyatt
REQUEST NO. 183:
Please provide the total number of conservation kits distrbuted in 2006 thrugh United Water
Shares andE1.;Ada.
RESPONSE NO. 183:
The anwer to this Request has already been provided in the Company's response to Production
Request No. 135.