20100107UWI to Staff 229, 239, 242.pdf

McDevitt & Miller LLP
Lawyers RECE
[phone]
[phone] (Fax)
420 W. Bannock Street
P.O. Box 2564-83701
Boise, Idaho 83702
2010 JAN -6 PH 2= 30 .
ehas. F. McDevitt
Dean J. (Joe) Miler
Janua 6, 2010
Via Hand Delivery
Jean Jewell, Secreta
Idaho Public Utities Commssion
472 W. Washigton St.
Boise, Idao 83720
Re: Case No. UWI-W-09-01
General Rate Case Filng
Dear Ms. Jewell:
Enclosed for fig, please fid thee (3) copies of United Water Idaho's Second Response to
Commssion Staffs Eleventh Production Request Nos. 229, 239 and 242.
Kidly retu a fie staped copy to me.
Very Truy Yours,
McDevitt & Mier lL
~DJM/hh
End
OR\G\NAL
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 -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
SECOND RESPONSE TO
COMMISSION STAFF'S
ELEVENTH PRODUCTION
REQUESTS
United Water Idaho Inc, ("United Water") by and though its undersigned attorneys,
hereby submits its Second Response to the Commission Staffs Eleventh Production Request
Nos. 229, 239 and 242.
DATED this -' day of Januar, 2010.
UNITED WATER IDAHO INC.
BY.~ \UQ-~Dean 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 SECOND RESPONSE TO COMMISSION STAFF'S ELEVENTH
PRODUCTION REQUESTS- 1
CERTIFICATE OF SERVICE
I hereby certify that on the Jjf'day of January, 2010, 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(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(ihotmai1.com
Hand Delivered
U.S. Mail
Fax
Fed. Express
Email
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UNITED WATER IDAHO INC'S SECOND RESPONSE TO COMMISSION STAFF'S ELEVENTH
PRODUCTION REQUESTS- 2
UNITED WATER IDAHO INC.
CASE UW-W-09-01 1010 JAN -6 PM 2: 35
ELEVENTH PRODUCTION REQUEST OF THE COMMISSION ~,TA:r:fc'¡
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Preparer/Sponsoring Witness: Kevin Doherty
REQUEST NO. 229:
In reference to Production Request No. 64 regarding corporate governance, please identify the
costs in the Company's response to Production Request No. 64 that are included in the general
rate case expenses for recovery from customers. Please include sufficient detail to allow
identification of each specific cost on Production Request No. 64 for which the Company
requests recovery.
RESPONSE NO. 229:
The Company estimates that $5,000 of CODIS related costs are included in the general rate case
expenses for recover from customers within the M&S Fees account.
UNITED WATER IDAHO INC.
CASE UW-W-09-01 20m JAN -6 PM .
ELEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF 2.35
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Preparer/Sponsoring Witness: Kevin Doherty
REQUEST NO. 239:
In reference to the Company's response to Production Request No. 119, please provide detailed
supporting documentation regarding the Company's $50,000 estimate ofM&S Company case
management, including the estimated payroll hours and other costs included within this estimate.
RESPONSE NO. 239:
The Company based its $50,000 estimate ofM&S Company costs for case management as well
as case preparation and discovery response. The amount is based on the Company's previous
experience in similar rate case filing situations. This estimate was not based upon payroll hours
but rather upon the amount charged to previous cases by M&S employees working in a similar
role.
UNITED WATER IDAHO INC.
CASE UW-W-09-01 20fO JAN -6 PM 2: 35
ELEVENTH PRODUCTION REQUEST OF THE COMMISSIONsr~r~., .'
iDhti'_'ï' '.., !;,!.! C
UTILITIES CO¡'lM¡.SS¡Orl
P\E-cr:ivr.,.. . .. ....1 r;'....~ 1 'f' i
Preparer/Sponsoring Witness: Kevin Doherty
REQUEST NO. 242:
In reference to the Company's response to Production Request No. 119, please explain and
provide supporting documentation for the $26,384 included in the rate case expense that is stated
as the remaining unamortized balance of prior case UWI-W-06-02 as of March 2010. Please
include in your response the original amount and amortization approved by the Commission, the
underlying calculation of the $26,384 in executable format, and the relationship of that to the
$18,066 unamortized balance for the UWI-W-06-02 rate case expense on line 12 of Exhibit No.
13, Schedule 10.
RESPONSE NO. 242:
Please refer to the attached Excel file which shows the calculation of the $26,384 in executable
format. Please also see the attached Stipulation of Settlement and Final Order in the referenced
case.
,.
,
ORIGINAL
WELDON B STUTZMAN (ISB 3283)
DONOVANE. WALKER (ISB 5921)DEPUTY ATIORNYS GENRA
IDAHO PUBLIC UTILITIES COMMISSION
POBOX 83720
BOISE, ID 83720.0074
Telephone: [phone]
[phone]
Fax: [phone]
Email: weldon.stutz(guc.daho.gov
donovan. walerßùpuc.idaho.gov
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Attorneys For Conussion Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF UNITED WATER IDAHO INC. FOR
AUTHORITY TO INCREASE ITS RATES
AN CHARGES FOR WATER SERVICE IN
THE STATE OF IDAHO
)
) CASE NO. UW-W-06-2
)
)
) SETTLEMENT STIPULATION
)
)
Ths Stipulation (Stipulation) is entered into by.and among United Water Idaho Inc
(United Water; Company), and the Staff of the Idaho Public Utilities Commission (Staff. There
are no intereng paries in the case.
INTRODUCTION
1. The Pares agree the Stipulation represents a fair, just and reasonable
compromise of the issues raised in United Water's Application for an increase in water servce
rates, and the Stipulation is in the public interest. The Paries believe the Stipulation and its
acceptace by the Idaho Public Utilities Commission (Commssion) represents a reasonable
resolution of the several issues identified in ths matter. The Partes, therefore, recmmend that
the Commission, in accordance with Rule of Procedur (RP) 274, approve the Stipulation and all
of its terms and conditions without materal change or condition.
BACKGROUND
2. On Febru 10, 2006, United Water filed an Application seeking authority to
increase the Company's rates an average of 17.91%. If approved, the Company's revenues
SEITLEMENT STIPULA nON 1
-~
f
would increase approximately $5.9 milion anualy. United Water proposed that the rate
increase be spread equally among all customer groups. The Company requested that new rates
becme effective on March 13,2006.
3. A petition to interene in ths proceedg was filed by Boise Residents Against
Commerial Exploitation (BRACE). However, BRACE subsequently withdrew its petition on
May 1, 2006. No other petitions to interene were filed in the cae.
4. On March 29, 2006, the Commission issued a Notice of Scheduling and Notice of
Hearng establishig the procedural schedule, including a techncal heang to convene on July
12, 2006. Following brief conversations the week before, the Paries met on May 15, 2006 to
engage in settlement discussions in accordance with RP 272 with a view toward resolvig the
issues in ths case.
5. Based upon the settlement discussions, as a compromise of the positions in ths
case, and for other considertion as set fort below, the Pares agree to the following ters:
TERMS OF THE STIPULATION
6. Setlement of Disputed Issues; Revenue Requirement. The settlement is reached
as a fair resolution to several disputed issues between the pares, recognzing that neither pary
was likely to prevail on ever issue at hearg. The settlement results in a revenue increase that
is reasonable, but without resolving specific issues which were in dispute betee the Company
and Staff Regarding United Water's revenue requirement, the Paries agree that United Water
should be allowed to implement revised taff schedules designed to recover $3.633 milion in
additional anual revenue from customer rates and charges, which is an overall increase of
10.98%. In determining the $3.633 milion additional revenue requiement, the Pares discussed
and debated the relative merts of the several disputed issues, and agree that most of the
additional revenue requirement results from including in rate base project costs and expense
updtes tht were not included in rates in the Company's last rate case, Case No. UWI-W-04-4,
and their inclusion here is consistent with the Commission's decisions in that cae. In addition,
the Paries agree that (a) until ordered to the contrar by the Commission, the Company wil
continue its curent metod to account for Idaho Power PCA costs. United Water may amortize
over thee year the approximate current balance of $79,000, and both pares agree that fuer
deferal will reflect the PCA rate effective as of June 1, 2006; (b) United Water may contiue to
amortize deferals for power expense, rate case expense, relocation expense, ta painting
SETTLEMENT STIPULATION 2
"
expense, water quality testing expense and several other minor amortzations approved in Order
No. 29838 issued in Case No. UWI-W-04-4, and may begin to amortize new defered tan
painting expense of $150,000 related to Federal Reservoir over a 20 year perod; (c) the
Company may amortize over a four year perod defer rate case expense related to Case No.
UWI-W-04-4 which was not addressed by Commission Orer No. 29838 and defered rate case
expenses for this case, UWI-W-06-2; (d) the Stipulation approved by the Commission in Case
No. UWI-W-04-4 regarding the cost of debt and retu on equity for United Water is approprate
for use in ths case.
7. Rate Spread and Rate Design. The Pares agree that the $3.633 milion revenue
requirement increase should be recover by implementing tarffs which increase the rates and
charges (except incidental serice charges) for all customers by a unform percentage amount of
approximately 10.98%. The unform percetage increase shal apply equaly to the customer
charge and volume charge as contained in United Water's tarffs.
8. Upon execution of ths Stipulation, the Pares wil fie a motion to suspend the
briefing schedule in the appeal from Case No. UWI-W-04-4, Supreme Court Docket No. 32431.
Upon entr of an order approving the settement, the Company wil promptly file appropriate
pleadings to dismiss with prejudice the appeal, with each pary to bear its own costs.
9. The Paries agre that the Stipulation represents a compromise of the positions of
the Pares in ths case. As provided in RP 272, other than any testimony filed in support of the
approval of ths Stipulation, and except to the extent necessar for a Pary to explain before the
Commission its own statements and positions with respect to the Stipulation, all statements made
and positions taen in negotiations relating to this Stipulation shall be confidential and wil not
be admissible in evidence in ths or any other proceeding.
10. The Paries submit this Stipulation to the Commssion and recommend approval
in its entirety pursuant to RP 274. The Pares shall support ths Stipulation before the
Commission, and no Pary shall appeal a Commission Order approving the Stipulation or an
issue resolved by the Stipulation. If this Stipulation is challenged by any person not a pary to
the Stipulation, the Pares to this Stipulation resere the right to file testimony, cross-examine
witnesses and put on such cae as they deem appropriate to respond fuly to the issues presented,
including the right to raise issues that are incorporated in the settements embodied in this
SETTLEMENT STIPULATION 3
..
Stipulation. Notwthstanding this reseration of rights, the Pares to ths Stipulation agree that
they will continue to support the Commission's adoption of the tens of ths Stipulation.
11. If the Commission rejects any par or all of ths Stipulation, or imposes any
additional materal conditions on approval of this Stipulation, each Pary reseres the right, upon
wrtten notice to the Commission and the other Pares to ths proceeding, withn 14 days of the
date of such action by the Commission, to withdraw from ths Stipulation, and each Pary shall
be entitled to seek reconsideration of the Commission's Order, file testimony as it chooses,
cross-examine witnesses, and do all other thgs necessar to put on such case as it deems
appropriate. In such case, the Pares immedately will request the prompt recnvening of a
pre hearg conference for puroses of establishing a procedural schedule for the completion of
the case. The Parties agree to cooperate in development of a schedule that concludes the
proceeding on the ealiest possible date, takng into account the needs of the Paries in
paricipating in hearngs and preparng briefs.
12. The Paries agree that this Stipulation is in the public inteest and that all of its
ters and conditions are fair, just and reasnable. The Pares agree to use their best efforts to
obtain Commission approval of the Stipulation in order to have new rates implemented by
August 1, 2006.
13. No Pary shal be bound, benefited or prejudiced by any position assered in the
negotiation of ths Stipulation, except to the extent expressly stated herei, nor shall ths
Stipulation be constred as a waiver of the rights of any Pary uness such rights are expressly
waived herein. Execution of this Stipulation shall not be deemed to constitute an
acknowledgement by any Pary of the validity or invalidity of any paricular method, theory or
principle of reguation or cost recover. No Party shall be deemed to have agreed tht any
method, theory or principle of reguation or cost rever employed in arving at ths Stipulation
is appropriate for resolving any issues in any other proceedng in the futue. No findings of fact
or conclusion of law other than those stated herein shall be deemed to be implicit in this
Stipulation.
14. The obligations of the Pares under ths Stipulation are subject to the
Commission's approval of this Stipulation in accordance with its terms and conditions.
15. This Stipulation may be executed in counterars and each signed counterar
shall constitute an original document.
SETTLEMENT STIPULA nON 4
~.
Respectfully submitted this ')).""z) day of May 2006.
Idaho Public Utities Commssion
Byif. 2 '-~
Weldon B. Stutzan
Donovan E. Walker
Deputy Attorneys General
Attorneys for Commission Staff
)
McDevitt & Miler, LLP
BY~ll
Dean J. Miler
Attorneys for United Water Idaho Inc.
bls/: UWi- W -06-02 _Stipulation _ ws
SETTLEMENT STIPULATION 5