20230315Staff to VEO 4-6.pdf

CHRIS BURDIN NEDDEPUTYATTORNEYGENERALIDAHOPUBLICUTILITIESCOMMISSIONi5ŸMÍ2:30POBOX83720
BOISE,IDAHO 83720-0074
[phone]
IDAHO BAR NO.98 10
Street Address for Express Mail:
11331 W CHINDEN BLVD,BLDG 8,SUITE 201-ABOISE,ID 83714
Attorneyfor the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )CASE NO.VEO-W-22-02VEOLIAWATERIDAHO,INC.FOR A )GENERAL RATE CASE )
)COMMISSION STAFF'S
)RESPONSE TO VEOLIA
)WATER IDAHO,INC.SECOND
)PRODUCTION REQUEST
The Staff of the Idaho Public Utilities Commission,by and through its attorney of record,
Chris Burdin,Deputy Attorney General,responds as follows to Veolia Water Idaho's Second
Production Request to Commission Staff.
REQUESTNO.4:Please provide a copy of the source document that supports lines 21-
23 in Mr.Terry'sdirect testimony,which read:"This formulahas a number of conditions
attached to it that do not make it applicable to this situation."
STAFF RESPONSE NO.4:This statement is the antecedent for the reasons Witness
Terry disagrees with the Hamada Formula.Therefore,there is no direct documentation for this
specific statement.The documentation would support the reasons stated later in Witness Terry's
testimony.
COMMISSIONSTAFF'S RESPONSETOVEOLIAWATERIDAHO'S SECONDPRODUCTIONREQUEST 1 MARCH 15,2023
REQUESTNO.5:Please provide a copy of the source document that the supports lines
23-25 of Mr.Terry's direct testimony,which read:"The first is that the Hamada formula is not
designed for a company that follows a constant leverage policy."
STAFF RESPONSE NO.5:See attachment PR 5-1.This is an excerpt from Cost of
Capital:Applications and Examples Fourth Edition by Shannon P.Pratt and Roger J Grabowski.
REQUESTNO.6:Please provide a copy of the source document that the supports lines
5-6 of Mr.Terry's direct testimony,which read:"the Hamada formula does not take into account
default risk."
STAFF RESPONSE NO.6:See Attachment PR 6-1.This is an excerpt from an article
on Investopedia.Staff has highlighted the relevant parts for ease of reference.Staff intended to
include the entire article but the way the website interfaced with the printer made it intelligible.
Therefore,staff included the link to the article should the entire article be desired.The link is
mvw.investopedia.com/terms/h/hamadaequation.asp.
Also,see Attachment PR 6-2.This is the entire article from efinancemanagement.com.
Staff has highlighted the relevant parts for ease of reference.
DATED at Boise,Idaho,this ay of March 2023.
Chris Burden
i:umise:prodreq/veow22.2cbrk prod req 2 responses
COMMISSION STAFF'S RESPONSE
TO VEOLIA WATER IDAHO'S SECONDPRODUCTIONREQUEST 2 MARCH 15,2023
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 15th DAY OF MARCH 2023,SERVED THE FOREGOING COMMISSION STAFF'S RESPONSE TO VEOLIAWATERIDAHO,INC'S SECOND PRODUCTION REQUEST,IN CASE NO.VEO-W-22-02,BY E-MAILING A COPY THEREOF,TO THE FOLLOWING:
PRESTON N CARTER DAVID NJUGUNA
MORGAN GOODIN MGR-REGULATORY BUSINESSGIVENSPURSLEYLLPVEOLIAWATERM&S INC
PO BOX 2720 461 FROM ROAD STE 400BOISEID83701-2720 PARAMUA NJ 07052E-MAIL:[e-mail] E-MAIL:[e-mail]
morgangoodindgivensoursley.com
[e-mail]
LORNA K.JORGENSEN SHARON M.ULLMAN,PRO SEMEGWADDEL5991E.BLACK GOLD STREETADACOUNTYPROSECUTINGBOISE,ID 83716
ATTORNEY'S E-MAIL:[e-mail]/CIVIL DIVISION
200 W.FRONT STREET,ROOM 3191
BOISE,ID 83702
E-MAIL:[e-mail]
JIM SWIER AUSTIN RUESCHHOFF
MICRON TECHNOLOGY,INC.THORVALD A.NELSON
8000 SOUTH FEDERAL WAY AUSTIN W.JENSEN
BOISE,ID 83707 HOLLAND &HART,LLPE-MAIL:[e-mail] 555 17TH STREET SUITE 3200
DENVER,CO 80202
E-MAIL:[e-mail]
MARY R.GRANT [e-mail][e-mail]
BOISE CITY ATTORNEY'S OFFICE aclee@hoÏlandhart.com
105 N.CAPITOL BLVD.kdspriggs hollandhart.comPOBOX500
BOISE,ID 83701-0500
E-MAIL:[e-mail]
boisecitvattornev citvofboise.ore
SÉCRETÀIiY
CERTIFICATE OF SERVICE