20150608Waites Direct Redacted.pdf

IN THE MATTER OF THE APPLTCATION
OF IDAHO POWER COMPANY FOR AN
ORDER AUTHORIZING THE APPROVAL
OF A LONG TERM PROGRAM CONTRACT
WITH SIEMENS ENERGY, INC., AND
DEEERRAL OE ASSOCIATED COSTS.
L: 50
CASE NO. rPC-E-15-17
BEEORE THE IDAHO PUBLIC UTILITIES COMMISSION
IDAHO POWER COMPANY
REDACTED DIRECT TESTIMONY
OF
COURTNEY E. V{AITES
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a.
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A.
address j-s 1221 West ldaho Street, Boise, Idaho 83102.
Pl-ease state your name and busj-ness address.
My name is Courtney E. Waites and my business
By whom are you employed and j-n what capacity?
I am employed by Idaho Power Company ("Idaho
Please describe your educational background.
In December of 1998, I received a Bachelor of
Power" or "Company") as a Senior Regulatory Analyst in the
Regulatory Affairs Department.
Arts degree in Accounting from the Universi-ty of AIaska in
Anchorage, Alaska. In 2000, I earned a Master of Business
Administration degree from Alaska Pacific University. I
have attended New Mexico State University's Center for
Public Utilities and the National Associatj-on of Regulatory
Utility Commissioners "Practical Skills for the Changing
E1ectric Industry" conference, the Electric Utility
Consultants, Inc., "Introduction to Rate Desj-gn and Cost of
Service Concepts and Techniques for Electric Util-i-ti-es"
conference, Edison Electrj-c Institute's "Introduction to
Public Utility Accounting" course, Edison Electric
Institute's Electric Rates Advanced course, and SNL
Knowledge Center's "Essential-s of Regulatory Finance"
course.
o.
Idaho Power.
Please describe your work experience with
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A.I began my employment with Idaho Power in
December 2004 in the Accounts Payable Department. In 2005,
I accepted a Regulatory Accountant position in the Einance
Department where one of my tasks was to assist in
responding to regulatory data requests pertaining to
financial issues. In 2006, T accepted my current position,
Regulatory Analyst, in the Regulatory Affairs Department.
My duties as a Regulatory Analyst include providing support
for the Company's various regulatory actl-vities, including
tariff administration, regulatory ratemaklng and compl-iance
filings, and the development of various prici-ng strategj-es
and policies.
What is Idaho Power requesting in this case?
Idaho Power is requesting (1) approval of a
Long Term Program (*LTP") Contract with Siemens Energy,
Inc. ("Siemens"), (2) approval of the transfer and sale of
certain assets to Siemens pursuant to Idaho Code S 67-328,
and (3) approval of the Company's proposed accounting
treatment of costs associated with the LTP Contract.
0.
proceeding?
What is the purpose of your testimony in thls
A.My testimony will describe
request for approval of the transfer and
assets to Siemens pursuant to ldaho Code
Idaho Power's
sale of certain
S 6!-328 and its
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request for approval of the Company's proposed accounting
treatment of costs rel-ated to the LTP Contract.
r. I.DAEO CODE S 61-328
o.Pl-ease describe the Company's request
approval of the transfer and sal-e of certain assets
Siemens pursuant to ldaho Code S 67-328.
A. As mentioned in the testimony of Mr. Mahlum,
Idaho Power currentl-y has capitalized spare parts on hand
in anticipation of maintenance outages. Vflith a LTP
Contract, the Company has no need for its current i-nventory
of spare parts; Siemens will provide all parts necessary
for maintenance and repair of Idaho Power's gas fIeet.
Under the terms of the LTP Contract, Siemens wil-l- take
ownership of Idaho Power's inventory of initial spare parts
for each combustion turbine ("initial spare parts"), as
Iisted in Exhibit G to the LTP Contract provided as
confidential Attachment 1 to the Applj-cation, and is
expected to remove them from Idaho Power's facilities soon
after the approval of the LTP Contract. In consj-deration
of the transfer of the initial spare parts to Siemens, the
contract price reflects a discount based on Idaho Power's
net book value of the initial spare parts.
o.Pursuant to ldaho Code S 67-328, an electric
utility must obtain approval from the Idaho Publ-ic
Utilities Commission ("Commission") before it sell-s or
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Idaho Power Company
for
to
1 transfers ownership in any generation, transmission, or
2 distrj-but j-on plant. Eurther, Idaho Code S 61-328 states
3 the Commission must find that the transaction is consistent
4 with the public interest prior to authorization of the
5 transaction. Is the transfer and sal-e of Idaho Power's
6 inj-tial spare parts to Siemens in the public interest?
7 A. Yes. In addition to the flnancial benefit of
8 reduced contract costs over the life of the agreement, the
9 transfer and sale of the lnitial spare parts will- all-ow for
10 the return of spare parts Idaho Power woul-d otherwise no
11 longer use. The demand for these specific spare parts is
L2 limited as the parts are no longer the latest technology
13 and have a limited buyer poo1, limiting its market val-ue.
14 The transfer and sal-e of the initial spare parts to Siemens
15 provides significant value to ldaho Power customers in the
16 form of reduced LTP Contract pricing.
L7 O. What is the net book val-ue of the initial
18 spare parts that will be transferred to Siemens?
!9 A. As of December 3!, 2074, the net book val-ue of
20 the assets that would be transferred to Siemens is
2L approximately $21.9 mill-ion on an Idaho jurisdictional-
22 basis.
23 O. Is the net book value of $21,.9 million in
24 initial spare parts part of the Company's approved rate
25 base?
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A.Approximately $19.1- million of the initial
spare parts Idaho Power is proposing to transfer to Siemens
is j-ncluded in the Company's Idaho rate base approved under
Order Nos. 32426 and 32585, Idaho Power's last general rate
case (Case No. IPC-E-11-08) and Idaho Power's request for
inclusion of the Langley Gulch power plant in rates (Case
No. IPC-E-72-14) . The remainJ-ng 92.9 mil-l-ion in initial-
spare parts are located at the Bennett Mountain and Danskin
plants with vintage years of 2072 and 2013, having been
placed in-service after the Company's last general rate
case.
O. How will Idaho Power's customers benefit from
the transfer and sale of the initial spare parts to
Siemens?
A.The transfer and sale of the initial spare
parts to Siemens will result in lower overall costs during
the life of the LTP Contract. As discussed in Mr. Mahlum's
testimony, Siemens wil-I install parts and equipment under
the LTP Contract that are the latest and most advanced
technology availabl-e on the market today. With this in
mind, Idaho Power identified the initial spare parts as
those parts the Company currently owns that would not be
used or installed as part of a LTP Contract. Durj-ng
negotiations with Siemens regarding the LTP Contract
pricing, Siemens agreed to take ownership of the initial
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spare parts in exchange for reduced contract pricing based
on the net book val-ue of those parts. Therefore, over the
life of the LTP Contract, Idaho Power and its customers
will pay a lower cost and receive more technologically
advanced equipment than would exist under a Company-managed
maj-ntenance program.
O. Do you believe the transfer of ownership in
the initial spare parts to Siemens complies with ldaho Code
s 6t-328?
A.Yes. The transfer and sal-e of the initial
spare parts to Siemens is consj-stent with the public
j-nterest, will result in lower overall costs to Idaho Power
and its customers, and Siemens has the bona fide intent and
fj-nancial ability to operate and maintain the initial spare
parts 1n the public service.
II. PROPOSED ACCOT'NTIIIG TREATMENT
O. What is Idaho Power's proposed accounting
treatment for the costs associated with the LTP Contract?
A.Idaho Power requests approval of (1) the
deferral of the initj-ation fees to a regulatory asset, (2)
the transfer of the net book value of the initial- spare
parts and associated net tax expense to the regulatory
asset, and (3) a carrying charge on a portion of the
regulatory asset bal-ance.
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O. Why does the Company seek to defer the
initiation fees?
A. Whil-e the LTP Contract provldes significant
benefits to customers over the life of the contract, absent
the requested accounting treatment, the fj-nanclal impact to
the Company in the first few years is considerable,
primarily attributable to the initiation fees and net tax
expense. As mentioned in the testimony of Mr. Mahlum, the
initiation fees serve as a prepayment toward services that
will be performed by Sj-emens over the life of the
agreement. Because the expense is for work performed
throughout the duration of the contract, Idaho Power j-s
proposing to establ-ish the initiation fees,
on an Idaho jurisdictional- basisr ds a regulatory asset.
The Company is proposing to amortize that balance, on a
straight-Iine basis, over the length of the contract,
commencing on payment of the inj-tiation fee to Siemens.
The deferral and subsequent amortization of initiation fees
will more closely match the expense recognition with the
work being performed.
O. What is the length of the amortj-zation period
the Company is requesting?
A. Idaho Power is requesting an amortization
period of 20 years. As explained in the testimony of Mr.
Mahlum, the estimated expiration date of the LTP Contract
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varies by combusti-on turbine but ranges 18-22 years. Using
a 2O-year period will align the length of the amortj-zation
wi-th the range of the estj-mated contract duration.
O. What is Idaho Power's proposed accounting for
the deferral and amortization of the ini-tiati-on fees in a
regulatory asset?
A.Idaho Power proposes to record the deferred
initiation fee amounts to Federal Energy Regulatory
Commission ("FERC") Account L82.3, Other Regulatory Assets.
The Company will record amortization of the deferred
amounts to EERC Account 407.3, Regulatory Debits.
O. If approved, how would the Company transfer
the net book val-ue of the initial spare parts to a
regulatory asset?
A. If approved, the LTP Contract will provi-de for
the transfer and sale of the initial spare parts to Siemens
which, in turn, provides customers the benefit of lower
contract costs over the life of the LTP Contract. The
Company i-s requesting to transfer the unrecovered portion,
or net book vaIue, of the initial spare parts, $21.9
million on an Idaho jurisdictlonal basis subject to true-
up, at closing. The Company also proposes to amortize the
amounts on a straight-line basi-s over the estimated life of
the LTP Contract r ox 20 years, commencing on the execution
of the LTP Contract. The deferral and subsequent
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amortization of the unrecovered portion of the initial
spare parts over the contract l-ife will more closely align
the benefits received from the LTP Contract with the costs
associated wlth transfer and sale of the assets
O. How does the amortization period of 20 years
compare to the current depreciable l-ife of the j-nitial
spare parts?
A. The initial spare parts have a remaining
depreciable life of 30 years so a 2}-year amortization
period is an acceleration of the remaining depreciable life
of the initial spare parts.
a.What is Idaho Power's proposed accounting for
the deferral- to and amorti-zation of the unrecovered amounts
of the initial spare parts in a regulatory asset?
A.Idaho Power proposes to record the deferral of
unrecovered initial spare parts to EERC Account 182.3,
Other Regulatory Assets, and record amortj-zatlon of the
deferred amounts to FERC Account 407.3, Regulatory Debits
o.
and sal-e of
A.
Will deferred taxes result from the transfer
the initial spare parts to Siemens?
Yes. The transfer and sale of the initial
spare parts to Siemens will create a net tax expense of
approximately $1.8 million on an Idaho jurisdictional
basis. Similar to the transfer of the unrecovered portions
of the initial spare parts, because the tax expense is a
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result of the transaction that will provide customers
benefits over the l-ife of the LTP Contract, the Company is
proposing to (1) record the net tax expense to FERC Account
282, Accumulated Deferred Income Taxes (debit Account 282,
Accumulated Deferred Income Taxes, and credit Account
410.1, Deferred Income Tax Expense) and (2) amortize the
amounts on a straight-line basis over the estimated life of
the LTP Contractr or 20 years (debit Account 410.1,
Deferred Income Tax Expense, and credit Account 282,
Accumulated Deferred fncome Taxes) .
o.Is Idaho Power proposing to accrue a carrying
charge on the amounts included in the regulatory asset?
A.Yes. The Company is propos j-ng to accrue a
carrying charge on of the regulatory asset,
in initiation fees and $2.9 million of the
initial spare parts. Because $2.9 million of the initial
spare parts has not yet been included in the Company's
authorized rate base and therefore the Company is not
currently earning a return on the amounts, Idaho Power is
requesting to accrue a carrying charge on that amount,
using the Company's most recent authori-zed rate of return.
O.Will approval of Idaho Power's request j-n this
case change customer rates at this time?
A. No, the Company is not requesting to change
customer rates at this time.
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O. Has the Company determj-ned what, Lf aoy,
impact the LTP Contract wlII have on Idaho Power's revenue
requirement?
A.Yes. Idaho Power completed an analysis that
quantified the present value revenue requirement impact of
executing the LTP Contract over a 21-year period, the
estimated length of the agreement. The analysj-s compared
the annual revenue requirement difference between two
scenarios: (1) a scenario in which there was no LTP
Contract (the self-management scenario) and (2) an LTP
Contract scenario. Accordingly, this revenue requirement
analysis l-ooked at incremental costs associated with the
execution of the LTP Contract as compared to the costs that
would exist under continued self-management.
o.V'Ihat are the results of the present val-ue
revenue requirement analysis?
A.By entering into
Company' s Idaho jurisdictional-
reduced by approximately $7.3
(20Ls-2034).
A. Yes.
revenue impact to
customers.
the LTP Contract, the
revenue requirement would be
million over a 20-year period
O. Have you prepared an exhibit demonstrating the
esti-mated revenue requirement impact?
Exhibit No. 1 provides a summary of the
the Company's Idaho jurisdicti-onal retail
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O. Please explain what is driving the lower
annual revenue requirements.
A.The annual revenue requirement under the LTP
Contract generally provides for lower capital expenditures
and lower operating expense amounts over the estimated life
of the agreement, resulting in savings over 20 years.
o.If the LTP Contract provi-des cost reductions
over the next 20 years, why is Idaho Power not proposing to
reduce customer rates at this time?
A. The present value revenue requj-rement analysis
performed by the Company identified avoided costs that
would exist under the LTP Contract. Absent the LTP
Contract, these avoided costs would be included in future
rates for recovery from customers. However, because the
Ievel of recovery of equivalent costs currently included in
rates i-s less than the cost that would be incurred under
the LTP Contract, it is not appropriate to further reduce
rates at this time. The execution of the LTP Contract will
serve to keep future customer rates l-ower than they would
have otherwise been.
O. Please summarize Idaho Power's proposed
accounting treatment of costs associated with the LTP
Contract.
A.Idaho Power is requesting approval of a
regulatory asset that includes the deferra1 of $I
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I or initiation fees pald to sj-emens , $21. 9 million
associated with the net book value of the initial spare
parts being transferred to Siemens, and $1.8 million
rel-ated to the net tax expense resulting from the transfer
and sal-e of the initial spare parts to Siemens. The
Company is proposing to amortize these amounts over the
estimated life of the LTP Contractr or 2A years. Einally,
Idaho Power is proposing a carrying charge equal to the
most recent authorized rate of return on
the regulatory asset balance.
Does this conclude your testimony?
Yes, it does.
of
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STATE OF IDAHO
County of Ada
SUBSCRIBED AND
June 20]-5.
ATTESTAIION OE' TESTII,ONY
SWORN to before me this 5th day of
expar :ozfoqJz02 I
WAITES, DI L4
Idaho Power Company
ss.
I, Courtney E. Waites, havi-ng been duly sworn to
testify truthfully, and based upon my personal knowledge,
state the following:
I am employed by ldaho Power Company as a Senior
Regulatory Analyst in the Regulatory Affairs Department and
am competent to be a witness in this proceeding.
I declare under penalty of perjury of the laws of
the state of Idaho that the foregoing pre-filed testimony
and exhibit are true and correct to the best of my
information and belief.
DATED this 5th day of June 2015.
urtney
.ot Af, f
{...d
tulr'\r'
-otary Publi
Residing at:
My commission
REDACTED -
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-15-17
IDAHO POWER COMPANY
WAITES, DI
TESTIMONY
EXHIBIT NO.1
LTP Contfft R0 Req
RATE BASE
El.dric Plant in 9ruic.
Produdion Pl.nt
[6s: Accumul.tad OepGciation
IIat Elcdric Pl.nl in S.ruic!
[6s: accumulatad Orferaed lncmc Tarai
Add: Consryilis - Othcr Dcf.rrcd Prog
TOTAI. €OMS|TED RATE EAIE
trET rt{cotE
Td"lOFdhgR@
Op.r.ting ExpcnaB
Opcration and Meinlcnenca Ftpansi
Oepradatiff [xpcnses
Amfriz{im of Umhcd T.m Plant
T.x6 Olhcr Than lname
Prdision fq Dcfarcd lncoma Tarai
Fadaral lncom Taxcs
State lncmc Trxcs
Td.l Opcrating Exp€nsas
Co@lldncd Op.ntkra lrcme
Prop@d R.t. of R.tum
E.rninSs lmpad
l{.]-to-Gr6 Tar Muhiplier
R@dE R.quiEmot
Sclf Manilc R{ Raq
RAIE IASE
El.dric Pl.nt in hrui@
Produdi@ Plant
[6s: kumulatad Oapreci.ti@
Ilrt El.dric Plem in S.Nicc
Bs: Acumulatcd Deferred lncm. Tucs
Add: Conery.lio - Othar Daferad Prog
TOTAT G'ilUNED RATE AASE
ldaho PmrCompany
ldaho Ju6ldlctlff.l PH6t Valuc Rmnsc Rcqulmcnt lmp.d
Lst Tlm Pro8nm COtECt
2015.2034
0 0 1,4s2;@ t4,2s5,4s6 14296496 22,028,085 22,O2a,@s 12,2?2,*6 32,212,*5 32,272,9a6
0 0 2s3,530 7r'M I,t77,7ta 1,t8&690 2,600,r.97 t,s2,6t5 4,@5,032 5,72t,150
0 0 7,598,679 13,581,089 13,119,312 20,139,394 L9,427,87 28,630,X1L 21,587,54 26,545,536
(1,765,931) (1,589,336) (1,493,834) (1,330,110) (1,12r,916) (991,523) (8s1.490) (736,132) (62E,a19) (531,5911
3O,Ltr326 24,5L7,53 34603,368 39004781 36,925,54 42,389,953 40,121,154 47,79t,@ 45,223,5LO 42,667,@5
0000000000
0 0 928,082 767,911 11,415 925,527 77,914 1,229,399 25,818 27,0A60 0 253,630 16t,777 $t,77t 1LL,507 7rL,507 7,U2,477 L,U7,4L7 L,042,4t7IIIIIIIIII0 0 {9,965 91,426 91,883 712,2At 712,9!t3 710,544 211,596 272,65144,297 8,297 t02,7l2 239,151 325,506 339,3i[5 4z,,9Tl 393,4rc 45a,8{X, 410,532
(1,16s,60o1 (1,16s,5(n) (1,6s5,828) (1,873,s68) (1,706,781) (2189,689) (1,975,/181) (2,s65,963!. 12,242,9L41 l2,La9,2o7l(22r,9151 (223,915) (318,281) (359,917) l32Z8Z) (4m,54s) (379,5871 (493,120) 1430,8591 (4m,ss2)
1LL,TOL L77,7O2 772,2OL 719,699 269,844 921,2$ 359,t73 7,228,67 488,77' 495,A50
{111.,7011 (111,702) l772,2OLl 1739,6991 .269,8141 l92t,2161 (359,173} 11,228,667) 1488.717} (495,850)
7.6% 7.6X 7.8/. 7.6* 7.8t;y. 7.6y. 7.*% 7.6% 7.$y. 7.&%
2,475,452 2,353,L14 3,492,08 3,85,175 3,172,192 4,253,097 3,512,695 4985,0,01 40,13,353 3,849,i184
1.42 1.642 t,U2 t.g2 1.642 1.42 1.42 1.il2 t.U2 L.il2
+ffio,5u 3lSrprr s,7tr,9o6 6,2ar,s91 sroa,7x 5p.3,srs s,767,ut5 a,rrsArT 6,61r,lls 6,32ors2
21550,631 3278&660 42,632,330 4a,353,455 50,438,163 51,617,4t7 69,A76,553 76,766,269 76,766,269 77,A42,072
(2,972,4tir) (:.,913,410) (s:}5,386) 102s,431 2,6s4,s9i1 4,118,7* 6,675,719 9,155,299 1r,84t50 14149,149
25.523,115 3+7OZO7O 13,t54,716 4732A,O3a 47,783,869 50,198,681 5120O,$/r 57,510970 65,131,420 e3,692,921
4,2L7,7$ 4,3o3,i5 4,454,296 4683,391 '1,1118,32! d899,32 4,931,0@ 5,022,567 5,O7a,4L 4,975,Q50000000000
21,301372 30,398,895 ?a,7O4,12O 12,A4,A3 42,9'lt5rl6 4t2!,9,:lo3 58,269,805 62,588,i103 60,052979 5&712518
Tdal Opcrnin8 Rdcnu6
Opcr.ting Erpenrd
OFration .nd M.intcnan@ Erpcnc
Oepreciaio [xpensci
Amdizilid of Umit.d Term Pl.nt
Tar6 OtherThrn lnffia
Prdisi@ fo Dcfer.rd ln@me Taxcs
hdaral lncom Taxct
St.te lncme Tues
Tdal Opcr.ting Expenss
Co@lldded opcntllt lM.
Prop6ed Rate of R.turn
Eamings lmpad
l{ct-to€r65 T.x Multipliar
naae Rcquiromot
7.86iX 7.8% 1.$*
1,257,084 2,m3,696 3,128,141
L.{2 L.il2 L.g2
2,8,1 r,1',,272 s,tj,/,,tlo'
7.6% 7.6X 7.6fi
,,stL,L47 3,413,702 3,EO,ZLO
t.g2 1.642 L.42
s,765,ro. t65ajsl 5,219,2Os
7.6X 7.6X 7.6% 7.6*
4,751,539 5,856,220 5,267,3G 5,61,112
1.42 LA2 L,gz L.42
7,n2,O27 g,StsttS t 5{r2r tir,5,765
L74,67O 185,5/t9 525,6D C4,St3 14,745 5&,529 2*9*' 1,222,3$ 254,9X 517,539
728,385 1,059,07i1 t,377,O21 t,*7,4t7 L629,L62 1,764,t43 2,?57,073 2,479,551 2,479,55L 2,5L4,290000000000
142,059 207,41 277,276 309,219 32{,155 352,77A 453,595 5q),810 503,36 512,9m
Tr,297 91,739 2*,59 Q7,659 457,279 433,970 4{6,535 575,60A 522p8 405,107
1L,29\7a21 l,.,$a,222) (2,0so,072) (2,318,s3i1) (2,334,673) (2,,184,i154) 12,70,.,9@l l?,272,w) (2,887,884) (2,9:15,s33)
REDACTED - Exhibit No. 1
Case No. IPC-E-15-17
C. Waites,lPC
Page 1 of2
4G.,t9 ,,s,*z t1:6,il(r, trss,loa 5,66/rr5a 6rt9,26 7fi1on ,,615,9!3 a6at9a tps,755
qriA.rtffir|G6o (rrc/..ol I{D.IJ.| w1.81 l4,B,atl .qr, lot,i.o 1,61ln rp.rra 2,o,,|I, \*rtt
(rtEvrPA.r-3lu ) |,'lr,ll
ld.ho Pow.Comp.ny
ld.hoJuEldlctld.l pffit V.luc Rmnur Rcqulmilt lmp.ct
L6g Tm Proinm Cdtnct
zrls - 20:ta
LTP Contract Rw Req
RATE BA'E
Eledrac Planl in Scilic.
Produdior Plant
Lcss: Acuhul.tcd O.precialion
l{ct Elcdric Plam in S€dica
Lers: Accuhulatcd Dcfarred lncme Texcs
Add: ConseNatid - Other Delerred Prog
TfrALOMBITED MTE NI
t{ET tilcof{E
Tdal OperatinS Rdenuei
Operating &penses
Oplration and Maintananc! Etpeng
Deprecidio Expenlcs
Amdization of Limited Term Plant
Taxes OtherThen lncome
Provision ftr Drrlrred lncoma Taxas
Fcderal lncomc Tarei
State lncmelaraa
Tdal Operating &pcnias
Cffi lld.tcd Op.ntl.[ lmm.
Prop6cd Rate of Return
EarninSs lmpad
llrt-to€rGs Tax Muhiplic.
Xna@ RaqdEhfii
Scff ManaSC Ra Rlq
34,668,425 34654425 47,494,192 47,494,t92 47,494,t92 47,194.192 47,494,t92 60,557,414 71905,833 71,905,&'3
5,U7,24 7,961,On 9,501,@2 1I"035,155 12,569217 1+103,280 t5,637,342 L7,593,317 19,915,95 22,23A,454
27,42L,t45 25,7OL,395 37,991G9 35,459,Ct7 34924975 33,390,912 31,85e850 12,961,6t7 31\949,927 ir9,567,368
(484,376) (401,790) (3m,$2) (131,884) s,42A s2,0a2 109,sre 185,05s 347,19 5$,747
-IIIIIII
4247A,259 19,A58,612 49,531,7A9 45,511,809 41,423,t65 4,425,L79 37,4t6,47O 47,O3O,UL 54,476,972 50,537,891
310,634 29,681 1,5i16,933 41,479 41,894 42,313 12736
1,119,79 1,119,790 1,534,052 1,534,052 1,534,052 1,534,062 L534062IIIIII I229,547 230,729 317,668 379,257 320,853 322,457 324.069
3S,66 39,112 472,570 559,814 510,601 476,524 44€,442
l2,3B,4nl 12,233,251 13,02A,4721 12,672,0711 12,627,08) (2,S96,02U (2,S71,0Oir)
1,584,7&t 1,398,4(B 56,62
1,955,005 2,322,558 2,322,55aIII4ts,27r 495,557 498,035
451,028 597,L6 672,947
13,371,263) 13,697,9321 (3,332,4141
t4s,7021 I t710,382) 16,10.165)701,569 529,9L] 1,513,904 582,145 684,661 693,557 697,769 1,805,116 1,818,27 1,mo,5:]a(7o1,ss) (s29,9r3) (1,613,904) (682,14s) (688,561) (693,ss7) (697,759) (1,805,116) O,ALa,2nl (Loq),s:r8)
7.46% 1.&% 7.&9t 7.6% 7.8% 7.6% 7.U%7.5% 7.6% 1.*%
4,040,460 3,662,800 S,s14,963
1.92 1.642 L.g2
5,604,il35 6Pra,3ll 9,055160
4,3X7,974 4,70L,722 3,A70,976
\U2 L.642 t.Uz
zrit2,95i, 6,73sp2t 6356,14r
3,538,699 5,50t,74 5,1m,r57 4,972,AL6t.s2 L.u2 a-s2 t.s25,971,74 9,Ot3r5a ronl6,aTll t 165,364
Eledric Plant in seNac.
Produdion Pl.nt
bss: Aeumulated Oaprcciation
,{et Eledric Pl.nt in Scruicc
tess: Accumulat€d Oalerred lncme Taxea
Add: Conetuilio - Other Dltlned Prog
TfrAL COMBTID NATE BA'E
I{EI IilCOME
79,O5t,43 79,74!,739 83,588,897 85,111486 8s,Ss1"ffi4 85,734805 9ZOO9,7S0 123,868,0m 131,671,276 138,568,541
t6,7O2,523 t9,274,24 27,974,167 24,727,394 27,4fi,697 3O,259,93t 33,393,345 '7,391,242 4\641,*2 46,123,125
62,349,320 &,65,493 61,610,729 60,384,084 54,W,*7 55,474,474 63,6L6,44 6,473,774 90,025,914 92,445,415
4,536,342 4,72O,O9t 4610,89!' +515,479 4,4L4,O65 1,237,94t 4,Gr2,O$ 3,920,539 3,951,6rt5 1,91t,671
0000000000
57,512,917 35,745,42 56,99,80 55,872,609 53,6/r6,il3 51,186,932 59,524,375 82,553,178 %,O75,ru 88,503,745
Td.l Oper.tinB Rwenuei
Ope.aling Erpen*i
Oparetion and Maintcnane Erpcns
Depreciatifi &pcnses
Amffiailio oI limitcd T.rm Plant
Taxrs OthcrThan lncme
Provision fd Oel€rrcd lncome Taxes
Federal ln@me Tares
State lncme Taxa!
Td.l Oper.ting Exp.nscs
Crelid.t.d OD.ndrl3 lmmc
PropGed Rate of Rcturn
EarninSs lmpad
l{at-to-G16s Tar Multiplicr
R{cnuc RcqulEmdt
ss,342 273,864 1,102,54a 29O,L67 586,096 302,962 3L9,445 L,657,2@
2,553,38 2,575,723 2,69,921 2,749,2$ 2,763,29 2,769,211 3,133,'t15 4mO,9:,600000000
s23,4% s30,718 559,090 572,t47 STt,957 582,084 561,931 849,420
3723a7 351,053 132,M 339,78 324,AU 311,079 L7O,2N 205,335
12,937,9391 12,a49,3t2) 13,177,304) 12,9s3,441) 13.ose,994) l2,9s9,3ils) (3,062,9s2) {4,136,2991
3,1(B,s80 211,701
4,?53,079 4,475,74
oo
907,& 959,755
4s,225 496,083
(s,07s,65s) (4,28a099)
42,275 334,587 906,3,18 43O,i155 604,385 437,521 633,718 1,792,008 2,713,538 1,03&502
(4n,27s1 l33{,5a7l (906,348) (4x),'l6s) (6O4,38s) (437,s21) (633,718) (U92,(m) 12,713,6*l (1,0:]8,502)
7.,,5tC 7.6/. 7.8/. 7.6% 7.6fr 7.85t4 7.6)a 7.6X 1.6* 7.6/r
4,97,7 4,776,275 5,385,535 4,822,052 4,820,985 4,460,814 5,3t2,334 8,280,688 9,479,154 7,*4,996
t.642 1.642 t.sz L.*2 7.92 L,il2 L.gz 7.642 t.U2 1.6{2
4,2D6,34 r,7/t4,121 a,W,eS rpl7,ars tBt6,o't'r,t24,6t5 a,122,85, t3,595,1SO t5,s,frt t1t2t,ru
REDACTED - Exhibit No. 1
Case No. IPC-E-15-17
C. Waites,lPC
Page2 of2
rd i.q 4,fi,38 7;14,121 4,,lt1,5$ ?,917,,t 7,El6,Os7 73.2a,66t5 t;r2\8 8595,t9o ,5,5,'47n B,Xn,1U
c(xll|crlExE rr(G6r) 1,s71r.5 r,zer06 w,ttet ,9alr t r'r,org raaFra l,r$,r$ +5arroE 3r.rrr {r6rraa
iErrlrpAcr-syis t (2,rt,2al(xtarxtAcr.roYl3 3 ,9!68