20150828UWI to Staff 128,130.pdf

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McDevitt & Miller r.rpLawyers :ii:lf,Llil In
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p.O. Box ?;,67.-g371t:i ili-l-ii,-i:: ',
Boise,Idaho 83702
August 28,2015
P["1 l: I I
.'' ,'.,,..iiglias. F. McDenitt
DeanJ. (oe) Miller
Celeste trL Miller
Via Iland Delivety
JeanJewell, Secteary
Idaho Public Utilities Commission
472W. Washington St.
Boise,Idaho 83720
Re: U\[I-W-15-01
Deat Ms. Jewell:
Enclosed for filing, please find an original and three (3) copies of United Water Idaho, Inc.'s First
Response to the Commission Staffs Sixth Ptoduction Request Nos. 128 and 130.
Kindly retutn a file sramped copy to me.
Very Truly Yourq
McDevitt & Miller LLP
b,tu12-
DeanJ. Mller
DJU/r,l
Cc United Watet Idaho, Inc.
Dean J. Miller (lSB No. 1968)
McDH/ITT & MILLER LLP
420 West Bannock Street
P.O. Box 2564,-83701
Boise, lD 83702
Tel: [phone]
Fax [phone]
[e-mail]
Attomey for United Water ldaho, lrtc.
IN THE MATTER OF THE APPLICATION
OF UNITED WATER IDAHO INC. FOR
AUTHORIW TO INCREASE ITS RATES
AND CHARGES FOR WATER SERVICE
IN THE STATE OF IDAHO
i , il
Gase No. UW-W-15{,1
UNITED WATER IDAHO INC.'S
FIRST RESPONSE TO SIXTH
PRODUCTION REQUEST OF THE
COMMISSION STAFF
i';i l: ll
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
United Water ldaho lnc., ("United Water') by and through its undersigned
aftorneys, hereby submits its First Response to the Commission Staffs Sixth Production
Request Nos. 128 and 130.
DATED this flltay of August, 2015.
UNITED WATER IDAHO INC.
UNITED WATER IDAHO INC.'S FIRST RESPONSE TO SIXTH PRODUGTION REQUEST OF THE
COMMISSION STAFF.l
DeaE J. Miller (lSB No. 1968)
Attomey for United Water ldaho, lnc.
CERTIFICATE OF SERVICE
I hereby certify that on the -<Say of August, 2015, I caused to be served, via
the method(s) indicated below, true and correct copies of the foregoing document,
upon:
Jean Jewell, Secretary Hand Delivered
ldaho Public Utilities Commission U.S. Mail
472 West Washington Street Fax
P.O. Box 83720
Boise, lD 83720-0074
i iewel l@ puc. state. id. us
Donald L. Howe!!, ll
Daphne Huang
Deputy Attomey Genera!
ldaho Public Utilities Commission
P.O. Box 83720
Boise, ldaho 83720-007 4
don. howell@puc. idaho.sov
daphne. huano@puc. idaho.qov
Brad M. Purdy
Attorney at Law
2019 N. 17th Street
Boise, lD 83702
[e-mail]
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U.S. Mail
Fax
Fed. Express
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Hand Delivered
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IL
&lta
tJ
,C
UNITED WATER IDAHO INC.'S FIRST RESPONSE TO SIXTH PRODUCTION REQUEST OF THE
COiTMISSION STAFF.2
UNITED WATER IDAHO INC.
GASE UW!-W-15-01
SIXTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Roger Greaves
REQUEST NO. 128: Please provide a copy of the policy and procedures for overhead
loading including accounts and amounts used with related explanation as to their use in
2012, 2013, 2014, and 2015 to date. Please include within your response the
methodology used to apply each overhead and the related percentage.
RESPONSE NO. 128:
The policy and procedure for overhead is in the attached exhibit (Request No. 128
exhibit 1.pdf).
Additionally, the calculated overhead rates are included from the time period of 2012 to
the present, on a month by month basis (Request No. 128 exhibit 2.pdf).
United Water
Capital Expenditure Control Policy and Procedure Manual
Capital Overheads
United Water has a standard policy for capturing and allocating capitalized overheads. A
common overhead policy is required to ensure that all costs are tracked and allocated in a
uniform and consistent manner across all companies. Capitalized overhead charges are
capital related costs incurred by executing capital project related activities and include
three main types of expenses: Labor, ContractorlN4aterials and General Expenses. Also
included are benefits and vehicle allocation costs that are applied to labor hours as part of
the Benefit and Vehicle allocation processes.
Operating Expenses should not be charged to capital overhead. Local operating company
General Manager or Regulated Segment Controller shall make the appropriate
determination if a specific charge should be recorded in capital overhead. Detailed
descriptions for water utility expense accounts can be found in "Uniform System of
Accounts for Class A Water Utility" under the 600 series accounts for "Water Operation
and Maintenance Expense Accounts".
General
There are five components of capital overhead charges:. Local overhead chargeso Segment overhead chargeso Corporate overhead charges
o Vehicle allocations. Benefits allocations
All capital overheads are allocated monthly using the Project Costing system. The
overhead costs are collected each month in accounts 10700 (reg segment) or
12 I 00 (for the non-reg segment).
The naming convention for these overhead projects is:
6.1
o Project IDo Activity
Uniled Water Capital Control Expenditure Policy and Procedure Manual
Revised 20 I 2
Page 35
Overhead_BU# where BU# Business Unit Number
Local (Local), Segment (Reg), Corporate (Corp)
The Capital Overhead allocations are run in the following order:
l. Local
2. Segment
3. Corporate
The Vehicle and Benefit Allocation Processes are run each month before the
Capital Overhead Allocation is begun. As a result, Vehicle costs and Benefit
Overheads will be included in the Local overhead base. Segment overheads are
compounded on top of the Vehicle, Benefit and Local charges and Corporate
Overheads are calculated on all costs including Vehicle, Benefits, Local and
Segment overheads.
Listed below are several key points relating to the overhead allocation process.
Capital allocations for Local, Segment and Corporate overheads will be
applied to current month CWIP expenditures in Project Costing, including
direct purchases, vehicle and benefit costs. CWIP expenditures are defined
as costs charged to account 10700 (water & wastewater) or 12120 (non-
reg)
All capital-related expenditures must be charged to a CWIP account.
All charges made to CWIP must have a Project ID and an Activity, in
order to be tracked in Project Costing. PeopleSoft requires that a Project
ID and Activity be entered when entering costs to a CWIP account.
Overhead allocation rates will be determined by UW M&S engineering
and accounting at the beginning of each year for each Business Unit, and
should be monitored and adjusted, if necessary, on a regular basis
throughout the year.
The Segment and Corporate overhead rates are set by the UW M&S
Company for all Business Units. Local overhead rates are calculated and
approved for each Business Unit by the Segment Controller for that unit.
Benefit and Vehicle rates are calculated for each Business Unit (Details as
to how the rates are determined will be discussed in subsequent sections of
this document).
Each overhead pool should be allocated as completely as possible at each
year end.
All capital overhead charges at the Local Business Unit must be made to
the "Local" Activity. Segment and Corporate Activities should not be
charged.
United Water Capital Control Expenditure Policy and Procedure Manual
Revised 2012
Page 36
6.2
Overheads will be applied to preliminary Survey and Investigation
projects. These projects will be tracked in the Project Costing system
using the "M" (water) or "X" (sewer) project coding described in the
capital Expenditure Policy and Procedure Manual.
Overhead is not calculated on AFUDC.
Overheads are not calculated on accruals if Source type MISC ACCRL
and the Category ACCRL ACCRL is used when posting to the General
Ledger.
Overheads will not post to any General Ledger entry that uses a Source
type of MISC and a Category type of TRNFR. This coding should not be
used except in special circumstances when it is necessary to move costs
between projects and additional overheads are not required.
Each of the overhead allocations will be distinguished by a separate
Category (ex Local, Seg, Corp) within project costing. The category field
is a breakdown within the Source field OHEAD. Reports can be run on the
Category field to gather total overheads for a period or to retrieve a
breakdown by overhead category. Benefits and Vehicle costs are identified
by BENEF and VEHIC respectively.
Overhead will be tracked in the Project Costing module using reports
written for that purpose (ex. Report UWPC60M provides a breakdown of
costs for any project. Running the Overhead_BU# project on a life to date
basis provides the user with the amount of overheads that have not been
distributed to date) The General Ledger should not be used to track
overheads or any other project. All project tracking should be done from
the Project Costing module.
Local Overheads
Local Overheads are capital related expenditures incurred by local Business Units
and include three main types of expenses: Labor, Materials and General
expenditures. Also included are benefits and vehicle costs that are applied to labor
hours as part of the Benefit and Vehicle allocation processes.
Where possible, all costs should be charged direct to a valid project ID. However
in some cases, charging to a valid approved project is not practical, such as time
spent reviewing capital budgets. In this case, the time will be captured as local
overheads and will be allocated to all projects through and overhead allocation
process.
United Water Capital Control Expenditure Policy and Procedure Manual
Revised 20 I 2
Page 37
The Local Overhead charges should be restricted to costs that are definitely
capital related and are not chargeable to a specific capital project. The Local
Overhead charges are combined into a single total in order to calculate an
overhead rate to allocate local expenditures.
The Local Overhead percentage is determined by taking the budgeted Local
Overhead costs and dividing by the Gross Capital Expenditures for the Business
Unit excluding Local, Segment and Corporate Overheads and AFUDC.
Total Budgeted Local Overhead Charges
Overhead Yo- ---
(Gross CapEx - Local, Segment, Corp Overhead Charges - AFUDC)
The Local Overhead allocation is run each month after all costs have been
recorded including the Benefit and Vehicle allocations. The Local Overhead Rate
will be charged to every dollar in project costing charged to CWIP, including the
Benefit and Vehicle allocation costs.
Local engineering management should review the local overhead rates
periodically and make adjustments by using the above calculation formula
accordingly.
Materials
Materials associated with specific capital projects should always be
charged direct to that project.
Materials purchased for use on multiple non-specific projects should be
charged to the Local Overhead project. An example of this is stone. which
is usuallv purchased in bulk and used in many projects.
Labor
Payroll Expenditures associated with a specific capital project should be
charged directly to that project. Time related to capital, but not specifically
related to a specific project, should be charged to the Overhead Local
project.
Direct charging of small increments of time to specific projects is
unrealistic. Common sense should be used when determining whether to
charge directly to projects or to the Local Overhead project.
All employee time spent on capital activities must be charged to a CWIP
account, either directly to a capital project ID or to the Local Overhead
United Water Capital Control Expenditure Policy and Procedure Manual
Revised 2ol2
Page 3g
6.3
project. Time should be charged to the where the employee spends their
time.
General Expenditures
General Expenditures are costs that cannot be charged directly to a
specific Project ID but are recognized as a component of the capital
process. Rent paid for office space for engineering personnel would be an
expenditure that should be capitalized in the Local Overhead account.
Other costs would include engineering supplies, telephone costs, etc.
The decision as to what items should be capitalized as General
Expenditures in the Local Overhead should be reviewed and approved by
the local Company General Manager or Regulated Segment Controller.
Segment Overheads
Segment Overheads are costs incurred by employees of the Regulated Segment of
United Water M&S Co. and are comprised mainly of Labor, Consulting and
General Expenses. Also included are benefit costs that are applied to labor hours
as part of the Benefit allocation process.
Where possible, all costs should be charged direct to a valid approved project ID.
However in some cases, charging to a valid approved project is not practical. For
example, time spent reviewing capital budgets normally cannot be charged to a
specific project. In this case, the time will be captured as Segment Overheads and
will be allocated to all projects through an overhead allocation process.
The Segment Overhead project should not be used erroneously or as a catch-all
but should be restricted to costs that are definitely capital related and are not
chargeable to a specific capital project. The Segment Overhead costs are
combined into a single total in order to calculate an overhead rate to allocate local
expenditures.
The Segment Overhead percentage is determined by taking the total budgeted
Segment Overhead costs and dividing by the Gross Capital Expenditures for the
Business Unit less Segment and Corporate Overheads and Interest to construction
(AFUDC).
Total Budgeted Segment Overhead Charges
Seg Overheado/o:
(Gross CapEx - Seg & Corp Overhead Charges - AFUDC)
United Water Capilal Control Expenditure Policy and Procedure Manual
Revised 20 I 2
Page 39
6.4
The Segment Overhead allocation is run each month after all capital costs have
been recorded including the local Overhead, Benefit and Vehicle allocations. The
Segment Overhead Rate will be charged to every dollar in project costing charged
to CWIP, including the Local Overhead, Benefit and Vehicle allocation costs.
The segment overhead rate needs to be reviewed and adjusted periodically based
on the latest capital investment level.
Corporate Overheads
Corporate Overheads are capital related costs incurred by employees of United
Water M&S Co. and are comprised mainly of Labor, Consulting and General
Expenses. Also included are benefits that are applied to labor hours as part of the
Benefit allocation processes. Where possible, all costs should be charged direct to
a valid approved project.
However in some cases, charging to a valid approved project is not practical. For
example, time spent reviewing capital budget is not normally charged direct to a
project. In this case, the time will be captured as Corporate Overheads and will be
allocated to all projects through an overhead allocation process.
The Corporate Overhead project should not be used erroneously or as a catch-all
but should be restricted to costs that are definitely capital related and are not
chargeable to a specific capital project. The Corporate Overhead costs are
combined into a single total in order to calculate an overhead rate to allocate local
expenditures.
The Corporate Overhead percentage is determined by taking the total budgeted
Corporate Overhead costs and dividing by the Gross Capital Expenditures for the
Business Unit less Corporate Overheads and Interest to construction (AFUDC)
Total Budgeted Corp Overhead Charges
Corp. Overhead%o:
(Gross CapEx - Co.p Overhead Charges - AFUDC)
The Corporate Overhead allocation is run each month after all costs have been
recorded including the Local Overhead, Segment Overhead, Benefit and Vehicle
allocations. The Segment Overhead Rate will be charged to every dollar in project
costing charged to CWIP, including the Local Overhead, Segment Overhead,
Benefit and Vehicle allocation costs. The corporate overhead rate should be
reviewed and adjusted periodically based on the latest investment level.
Transnortation
Transportation costs on local Business units are to be charged to account 18420
Clearing-Transportation. These costs are then allocated to expense, capital, other
Uniled Water Capital Control Expenditure Policy and Procedure Manual
Revised 2ol2
page 4o
6.5
6.6
based on a Vehicle allocation process within the PeopleSoft system. This
allocation does not apply to United Water M&S employees.
Each local Business Unit is to identify those employees with access to Company
vehicles or who receive a Vehicle allowance for use of their vehicle. The Local
Company managers are responsible for reviewing this list semiannually to ensure
that the list is complete and accurate. They are also responsible to ensure that any
changes are made within the PeopleSoft system to correct any inaccuracies. A
signed copy of this review is to be mailed to the Segment Controller's office,
where it will be reviewed and filed as part of the annual CODIS compliance.
The allocation of the Vehicle costs in PeopleSoft is accomplished by taking the
balance in the 18420 Clearing - Transportation account at month end and
allocating it to the current month payroll dollars of those employees included by
the local Company manager on the vehicle list described above. Only the time of
those employees are used in the vehicle allocation. The entry to record the data is
to debit expense/capital/other and credit account 18420. The 18420 account
should be zero at the end of each month.
Emplovee Benefits
Benefits are employee related expenses which are deemed to be a part of an
employee's compensation and should follow the employee's time wherever it is
charged. Benefits will be added to all labor charged to any capital project,
including labor charged to a capital overhead project. The Benefit Overhead is
based on an allocation of costs charged to certain benefit accounts in the General
Ledger which have been identified as being appropriate for re-allocation from
expense. This re-allocation is based on time sheets prepared by each employee.
When capital is charged on the time sheet, a portion of the employee benefits are
transferred from expense to capital to reflect the fact that these costs should
follow an employee's time.
Examples of costs included in the benefits calculation are:
o Payroll taxes paid by the employero Pension Costso Post Retirement Benefit Costso Group Medical Costso 40lK Costs. Worker Compensation costs
Because benefits don't flow into the General Ledger evenly throughout the year, a
"Predicted monthly benefit amount" is calculated and used in the Benefit
allocation process. The "Predicted monthly benefit amount" is calculated using
the employee benefits from the annual operating plan and dividing those benefits
by 12.
United Water Capilal Control Expenditure Policy and Procedure Manual
Revised 2012
Page 4l
For example, if total benefits for the year are $1,200,000, the "Predicted
monthly Benefit amounf'would be $100,000. This amount is allocated out
each month based on total payroll costs. The amount is divided by total
payroll dollars and is applied to each dollar of payroll in that month. If
20%o of the payroll costs are charged to capital, 20o/o of the fringes should
follow. The $100,000 is billed out in the Fringe benefit allocation process
which debits account 10700 CWIP and credits account 18410 Clearing-
fringe Benefits.
At Month end, another PeopleSoft process moves the actual Benefit costs
on the General Ledger to the 18410 account as a debit. This allows anyone
to see whether benefits have been over or under billed for the period
simply by looking at the 18410 account. A debit balance in the account
means that Benefits have been under billed, while a credit balance
indicates that Benefit costs were overbilled.
At year end, the balance in the account must be zero as all Benefits are
required to be billed out during the current calendar year. Throughout the
year the balance in account 18410 is monitored and adjustments are made
to the "Predicted monthly benefit amount" as needed to be sure the
account zeros by year end.
Benefits are applied to all payroll dollars during the month and follow the labor to
whatever account they are charged on the time sheets.
United Water Capital Control Expenditure Policy and Procedure Manual
Revised 2012
Page 42
United Water ldaho
Overhead Rates
United Water ldaho
United Water M&S
UW M&S - Regulated
1 2012
2012
2012
2012
8.30%
1.10o/.
3.50%
1
1
1 13.320/o
United Water ldaho
United Water M&S
UW M&S - Regulated
2
2
2
2
2012
2012
2012
2012
9.90%
1.20%
1.30%
12.660/.
United Water ldaho
UniieO Water M&S
UW M&S - Regulated
3
3
3
2012
zotz
2n12
2012
9.90%
1.20o/o
'l .30%o
3 12.66%
United Water ldaho
United Water M&S
UW M&S - Regulated
4
4
4
2012
2012
2012
2012
9.30%
1.20o/o
1.30o/o
4 12.050/0
United Water ldaho
United Water M&S
UW M&S - Regulated
5
5
5
2012
2012
2012
2012
9.30%
1.20o/o
1.30o/o
5 12.05o/o
United Water ldaho
United Water M&S
UW M&S - Regulated
6
6
6
6
2012
2012
2012
2012
9.30%
1.20o/o
1.300/o
12.050/o
United Water ldaho
United Water M&S
UW M&S - Regulated
7
7
7
7
2012
20t2
2f'L2
2012
9.30%
7.20%
7.93%
72.75%
United Water ldaho
United Water M&S
UW M&S - Regulated
8
8
8
8
2012
2012
2012
2012
9.30%
1.20%
7.93o/o
12.75%
United Water ldaho
United Water M&S
UW M&S - Regulated
9
9
o
I
2012
2012
2012
2012
930%
!.200/o
L.93%
L2.75%
United Water ldaho
United Water M&S
UW M&S - Regulated
10
10
10
10
20't2
2012
2012
2012
7.38o/o
7.840/o
2.68%
\2.290/o
United Water ldaho
United Water M&S
UW M&S - Regulated
11
11
11
2012
2012
2012
8.t4o/o
1..g40/o
2.68%
United Water ldaho
Overhead Rates
11 2012 t3.08%
United Water ldaho
United Water M&S
UW M&S - Relulated
12
12
12
12
2012
2012
2012
2012
8.L4%
L.84,r/"
2.20%
L2.55o/o
United Water ldaho
United Water M&S
UW M&S - Regulated
1
1
1
2013
2013
2013
2013
8.L{o/o
L.84%
2.20%
1 L255%
United Water ldaho
United Water M&S
UW M&S - Regulated
2
2
2
2013
2013
2013
2013
8.46%
L.89%
t8L%
2 L2.5lo/o
United Water ldaho
United Water M&S
UW M&S - Regulated
3
3
3
3
2013
2013
2o1g
2013
8.46%
L.89%
l.8lo/o
125r%
United Water ldaho
United Water M&S
UW M&S - Regulated
4 2013
2013
2013
2013
8.46%
t.89%
t.8L%
4
4
4 72.57%
United Water ldaho
United Water M&S
UW M&S - Regulated
5 2013
2013
2013
2013
8.460/o
t.8g%
L3t%
5
5
5 L2.SLo/o
United Water ldaho
United Water M&S
UW M&S - Regulated
6 2013
2013
2013
2013
8.46%
L.89%
L.8L%
6
6
6 12.5lo/o
United Water ldaho
UW M&S - Regulated
UW M&S - Regulated
7
7
7
7
2013
2013
2013
2013
8.46%
L.89%
t.8L%
L2.5t%
United Water ldaho
United Water M&S
UW M&S - Regulated
I
8
2013
2013
2013
2013
9.74%
L.O5%
7.4L%I
8 12.46%
United Water ldaho
United Waier fUaS
UW M&S - Regulated
o
I
I
2013
2013
2013
9.74%
1.05%
t.4LYo
L2.46%
United Water ldaho
United Water M&S
10
10
2013
2013
7.L9%
4.84%
United Water ldaho
Overhead Rates
UW M&S - Regulated 10 2013 2.75%
10 2013 L5.47%
United Water ldaho
United Water M&S
UW M&S - Regulated
11
11
11
11
2013
2013
2013
2013
4.90%
4.84%
2.75o/o
L3.OO%
United Water ldaho
United Water M&S
UW M&S - Regulated
12
12
12
12
2013
2013
2013
201g
4.9Oo/o
3.Os%
1.08%
9.270/o
United Water ldaho
United Water M&S
UW M&S - Regulated
1
1
I
2014
2014
2014
2014
7.50%
5.so%
o.ooo/o
1 73.47%
United Water ldaho
United Water M&S
UW M&S - Regulated
2
2
2
2
20t4
2074
2014
2074
7.so%
5.5Oo/o
0.00%
L3.4Lo/o
United Water ldaho
United Water M&S
UW M&S - Regulated
3
3
3
3
2014
2074
2074
2014
7s0%
5.5Oo/o
o.o0%
L3.41o/o
United Water ldaho
United Water M&S
uw Mas - Regulaied
5
4
4
4
20L4
20L4
2014
201.4
7F0%
5.50o/o
O.OOo/o
L3,4L%
United Water ldaho
United Water M&S
UW M&S - Regulated
5
4
2074
2014
20t4
2074
7.so%
5.50%
O.OOo/o5
5 L3.4L%
United Water ldaho
United Water M&S
UW M&S - negutated
6
6
6
6
2-0L4 7.50%o
5.50%
o.oo%
20L4
)ou
ioln t3. Lo/o
United Water ldaho
United Water M&S
UW M&S - Regulated
7 20L4
2074
20t4
2074
7.50%
s.so%
o.oo%
7
7
7 L3.410/o
United Water ldaho
United Watei ruAS
UW rVrAS - netutateO
8 2074
20t4
20t4
2074
7.s0%
5.50%
o.oo%
8
8
8 73.47%
United Water ldaho
United Water M&S
UW M&S - Regulated
9
9
9
20L4
20L4
2014
7.5oo/o
5.50%
o.oo%
United Water ldaho
Overhead Rates
9 2014 t3.410/o
United Water ldaho
United Water M&S
UW M&S - Regulated
10
10
10
10
20L4
20L4
20L4
20L4
7.50%
5.50%
o.oo%
t3.4L%
United Water ldaho
United Water M&S
UW M&S - Regulated
LL
LL
LL
LL
20L4
20L4
20t4
20L4
7.so%
5.50%
o.ooo/o
L3.4t%
United Water ldaho
United Water M&S
UW M&S - Regulated
L2
L2
t2
L2
20L4
20L4
20L4
20L4
7.50%
5.50%
o.oo%
t3.47%
United Water ldaho
United Water M&S
UW M&S - Regulated
1
I
1
2015
2015
2015
2015
7.500/o
s.so%
o.oo%
I 13.47o/o
United Water ldaho
United Water M&S
UW M&S - Regulated
2
2
2
2
2015
2015
2015
20L5
7.50%
550%
O.OOo/o
L3.4to/o
United Water ldaho
United Water M&S
UW M&S - Regulated
3
3
3
3
2015
2015
201_5
2075
7.50%
5.50%
O.OOo/o
13.4L%
United Water ldaho
United Water M&S
UW M&S - Regulated
4 2015
2015
iots
2015
7.50%
5s0%
o.o0%
4
4
4 t3.4Io/o
United Water ldaho
United Water M&S
UW M&S - Regulated
5 2015
2015
2015
2015
8.9t%
5.50%
o.oo%
5
5
5 t4.90%
United Water ldaho
United Water M&S
UW M&S - Regulated
6
6
6
6
2015
2015
2015
2015
8.91o/o
sso%
o.oo%
14.9Oo/o
United Water ldaho
United Water M&S
UW M&S - Regulated
7
7
7
7
20't5
2015
2015
2015
8.91%
550%
o.oo%
L4.90%
United Water ldaho
United Water M&S
UW M&S - Regulated
8
8
8
2015
2015
2015
8.9to/o
5.50%
0.00%
UNITED WATER IDAHO INC.
GASE UWI-W.I5-01
SIXTH PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Jarmila Cary
REQUEST NO. 130: Please provide a table for uncollectible accounts that includes
Sales Revenue, Uncollectible Accounts and Uncollectible Account Rates for the past
four years. Please include within your response a comparison to the uncollectible rate
included within the Company's case and explanation for any differences between the
rate in the case and that in response to this request.
RESPONSE NO. 130:
Please see attached file #130 Bad Debt 2011-2014.x\sx.
Exhibit 10, Adjustment 14 details the book revenue and bad debt expense along with
the adjustments required for comparability for years 2012 through 2014. Adjustments to
both bad debt & revenue were necessary due to: 1) the 2013 accounting
standardization effort where leak and similar bill adjustments were no longer reflected
as billing cancellations reducing revenue, but recorded as increases to uncollectible
expense, 2) infrequent adjustments for the allowance for bad debt reserve, and 3) to
exclude the extraordinary 2012 credit related to the IDEQ Drinking Water Fee payment.
The uncollectible accounts expense rate included in the rate case of 0.4460/o, is the
average of the total adjusted bad debt and revenue figures from years 2012 through
2014.