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HomeMy WebLinkAbout20230104_Veolia to Staff 42-147.PDFVEOLIA WATER IDAHO, INC.’S RESPONSES TO THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF PAGE 1 OF 3 16518505_2.DOCX (30-235) Preston N. Carter, ISB No. 8462 Morgan D. Goodin, ISB No. 11184 Givens Pursley LLP 601 W. Bannock St. Boise, ID 83702 Telephone: (208) 388-1200 Facsimile: (208) 388-1300 prestoncarter@givenspursley.com morgangoodin@givenspursley.com Attorneys for Veolia Water Idaho, Inc. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF VEOLIA WATER IDAHO, INC. FOR A GENERAL RATE CASE Case No. VEO-W-22-02 VEOLIA WATER IDAHO, INC.’S RESPONSES TO THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF In response to the Third Production Request of the Commission Staff to Veolia Water Idaho, Inc. dated December 2, 2022, Veolia Water Idaho, Inc. (“Veolia” or “Company”), submits the non-confidential responses contained below. Documents are available for download at the link provided in the transmittal email. Confidential responses and documents will be provided separately under the terms of the Protective Agreement. As set forth in correspondence with Staff, Veolia will complete the responses on January 9, 2023. DATED: January 4, 2023. By:_____________________________ Preston N. Carter Givens Pursley LLP Attorneys for Veolia Water Idaho, Inc. VEOLIA WATER IDAHO, INC.’S RESPONSES TO THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF PAGE 2 OF 3 16518505_2.DOCX (30-235) CERTIFICATE OF SERVICE I certify that on January 4, 2023, a true and correct copy of the foregoing was served upon all parties of record in this proceeding via electronic mail as indicated below: Commission Staff Via Electronic Mail Jan Noriyuki, Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg. 8, Suite 201-A Boise, ID 83714 jan.noriyuki@puc.idaho.gov Dayn Hardie Deputy Attorney General Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg. 8, Suite 201-A Boise, ID 83714 dayn.hardie@puc.idaho.gov Lorna K. Jorgensen Meg Waddel Ada County Prosecuting Attorney’s Office Civil Division 200 W. Front Street, Room 3191 Boise, ID 83702 civilpafiles@adacounty.id.gov Sharon M. Ullman, pro se 5991 E. Black Gold St. Boise, ID 83716 sharonu2013@gmail.com Austin Rueschhoff Thorvald A. Nelson Austin W. Jensen Holland & Hart, LLP 555 17th Street, Suite 3200 Denver, CO 80202 darueschhoff@hollandhart.com tnelson@hollandhart.com awjensen@hollandhart.com aclee@hollandhart.com kdspriggs@hollandhart.com Jim Swier Micron Technology , Inc. 8000 South Federal Way Boise, ID 83707 jswier@micron.com Mary Grant Deputy City Attorney Boise, City Attorney’s Office 150 N. Capitol Blvd. PO Box 500 Boise, ID 83701-0500 BoiseCityAttorney@cityofboise.org mrgrant@cityofboise.org VEOLIA WATER IDAHO, INC.’S RESPONSES TO THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF PAGE 3 OF 3 16518505_2.DOCX (30-235) Preston N. Carter VEO-W-22-02 IPUC DR 61 Page 1 of 1 VEOLIA WATER IDAHO, INC. CASE VEO-W-22-02 THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Cary REQUEST NO. 61: Please provide the following monthly information in Microsoft Excel electronic format for each well pump and/or booster pump within the system over the past 5-years: a. Electric energy consumed (kWh) b. Differential pressure between the pump suction and discharge (psi) Electric energy consumed (kWh) c. Amount of water pumped (gal). RESPONSE NO. 61: Please see the following attachments in response to the requested information: a. Attachment 1-Request No 61 (a) - Power by Site b. Attachment 2-Request No 61 (b) - Differential pressure c. Attachment 3-Request No 61 (c) - Production by Site VEO-W-22-02 IPUC DR 62 Page 1 of 1 VEOLIA WATER IDAHO, INC. CASE VEO-W-22-02 THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Cary REQUEST NO. 62: Please provide the following monthly information in Microsoft Excel electronic format for each location where chemical treatment is introduced into the system over the past 5-years: a. Location b. Chemical treatment type and concentration c. Amount of chemical treatment introduced into the system d. Amount of water treated. RESPONSE NO. 62: Please see Attachment 1. The chemical calculations are based on average monthly system data. VEO-W-22-02 IPUC DR 92 Page 1 of 2 VEOLIA WATER IDAHO, INC. CASE VEO-W-22-02 THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Wilson REQUEST NO. 92: With reference to Exhibit No 10, Schedule 1, Adjustment 16 - Vehicle Allocation, please provide supporting documentation for the following transportation expenses as shown in Company witness Wilson's Direct Testimony beginning on page 6. In the response, please identify any additional costs necessary for future employees that have been included as a pro forma adjustment to the Company's revenue requirement. Also, please verify that the mechanic payroll has not been already included in the Payroll Adjustment. a. Mechanic payroll and benefits b. Lease Cost & GPS fees c. Fuel d. Material, Maintenance e. Insurance f. Other Costs g. Depreciation h. Tax i. VA Allowance RESPONSE NO. 92: With reference to the pro forma Test Year Expense filed in Exhibit No 10, Schedule 1, Adjustment 16 - Vehicle Allocation, please see below for supporting documentation. a. Mechanic payroll and benefits ($99,362): The Test Year expense is based on the annual salary of the mechanic as included in the total on Line 3 - Transmission and Distribution labor in Exhibit No 10, Schedule 1, Adjustment 1 - Payroll. The annual salary of $74,246 is based on the rate of pay effective in the current Collective Bargaining Agreement. Additionally, Historic Test Year Fringe Benefit Allocation as filed in Exhibit No 10, Schedule 1, Adjustment 8 of 33.83% is added for a total Test Year expense of $99,362. The mechanic payroll and benefits are initially recorded to VEO-W-22-02 IPUC DR 92 Page 2 of 2 direct labor expense but through an allocation process, are transferred out to the vehicle allocation account 50645000. As a result, the mechanic’s payroll is not also included in the payroll adjustment. b. Lease Cost & GPS fees ($736,412): See Attachment 1 - Test Year Lease Costs. Column Q summarizes the Test Year lease expense. GPS fees are included in "Other Costs". c. Fuel ($351,490): See Request No 95 for documentation regarding the Test Year fuel expense. d. Material, Maintenance ($216,070): Test Year expense was calculated using the actual materials and maintenance charges for 2021, plus a 3% projected inflation factor. See Attachment 2 - Materials, Maintenance for details. e. Insurance ($211,509): Corporate allocation f. Other Costs ($207,652): Includes depreciation ($140,248), Heavy Highway Vehicle Use Tax ($2200), VA Allowance ($37,404), and ($27,800) of various other costs including GPS fees and monthly lease management fees. g. Depreciation : $140,248 - Corporate allocation based on depreciable assets and included in Other Costs total. h. Tax: Refers to Heavy Highway Vehicle Use Tax at $2200 and is included in Other Costs total. i. VA Allowance: $37,404 - 5 Upper Management Employees receive a vehicle allowance. These costs are included in the Other Costs total and reflected in confidential Attachment 4- VA Allowance (Confidential). Historic Test year journal entries are included in Attachment 3 - Historic Test Year Journal Entries and tie to filed amount of $834,494. VEO-W-22-02 IPUC DR 93 Page 1 of 1 VEOLIA WATER IDAHO, INC. CASE VEO-W-22-02 THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Wilson REQUEST NO. 93: Please provide a schedule showing the year, make, and model of the Company's current fleet of vehicles. For each vehicle, please state whether it is leased or owned by the Company, along with the purchase price and net book value. RESPONSE NO. 93: Please see the attachment for current fleet details. VEO-W-22-02 IPUC DR 96 Page 1 of 1 VEOLIA WATER IDAHO, INC. CASE VEO-W-22-02 THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Wilson REQUEST NO. 96: Please provide the source documents and calculations that support the increase in costs of $70,176 for the insurance and vehicle maintenance costs mentioned on page 8 of Company witness Wilson's Direct Testimony. Please include the invoices, insurance policies, and other source documents to support this increase. RESPONSE NO. 96: The testimony of Company witness Wilson inadvertently stated an increase in costs of $70,176 for the insurance and vehicle maintenance costs mentioned on page 8 whereas it should have been stated as a decrease of $68,669. The table below shows the Historic Test Year ending June 30, 2022 compared to the Test Year expense by category. The costs in question are comprised of Vehicle Maintenance (Cost Element 682004), Auto Insurance (Cost Element 682005), and Other Transportation Costs (Cost Element 682006) – highlighted in grey below. In total, these specific costs are decreasing by a net expense amount of $68,669. Vehicle maintenance costs decreased from the Historic Test Year by $34,321. Auto insurance costs decreased from the Historic Test Year by $88,536. Other Transportation costs increased by $54,188 which is predominantly depreciation expense due to the purchase acquisition of a vac truck and two large crew trucks. Expense Type Cost Element Historic Test Year - Gross Test Year - Gross Gross Difference Net Difference Labor Expense 682001 128,907 99,362 (29,545) (16,718) Leased Vehicles (Net of Proceeds)682002 310,818 725,912 415,094 234,888 Vehicles:Gasoline 682003 274,872 351,490 76,618 43,356 Vehicle Maintenance 682004 276,722 216,070 (60,652) (34,321) Auto Insurance 682005 367,970 211,509 (156,461) (88,536) Other Transporation Costs 682006 111,891 207,652 95,761 54,188 TOTAL GROSS 1,471,182 1,811,996 340,814 192,856 NET EXPENSE 832,494 1,025,350 192,856 Historic Test Year Opex Ratio 56.59% Subtotal Vehicle Maintenance, Auto Insurance, & Other Transportation Costs (68,669)