20180330Falls Water Response.pdf

FII-LSW TER
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2180 N Deborah Dr, ldaho Fatts, ldaho 83401
Website: www.fatlswater.com
ret.:(208) #U.8rS&B 30 AH 9: 22
Fax [phone],. :,ii:-:i rr-
- ; :, :, r.';'.;;Ii'.i'/;i$sroruMarch 26,2018
ldaho Public Utilities Commission
472 West Washington Street
PO Box 83720
Boise, ldaho 83720-0074
Enclosed are one (1) original and seven (7) copies of the Company's response to the investigation
into the impact of Federal Tax Code Revisions on utility costs and ratemaking Case No. GNR-U-18-
01. Also enclosed is a CD disk electronic version of the response.
lf you need anything else, please, let me know what you need.
Thank you,
K #'fl€"^,4t
K. Scott Bruce
GeneralManager
Falls Water Company, lnc.
Enclosures
K. Scott Bruce
Falls Water Company, Inc.
2180 North Deborah Drive
Idaho Falls, ID 83401
Tel. (208) s22-1300
Fax [phone]
E-mail : scott I @fallswater.com
IN THE MATTER OF THE INVESTIGATION )
INTO THE IMPACT OF FEDERAL TAX )
CODE REVISIONS ON UTILITY COSTS AND )RATEMAKING )
RECE IVED
?fi!$ lhlAR 30 iH g: 22
Ii-l;i.j.,i FUiil_iCiTl, ;',:i !: c0h{F,llssl0N
Representative for Falls Water Company, Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. GNR.U.18-01
RESPONSE TO
oRDER NO. 33965
Comes now, Falls Water Co., Inc. ("Falls Water"), an Idaho S Corporation, to account for
the financial benefits from the January 1,2018 tax rate reduction to 2lo/o as a deferred regulatory
liability as required by Order No. 33965.
Current Rate Structure
Falls Water's current tariffs were effective on October 16,2012 per Order No. 32663.
The current rates for water service are as follows:
Meters for all customers, residential, commercial, industrial, institutional, apartment
buildings with two or more units, and condominiums will be read monthly year round.
Meter Size
Maximum Allowable
Gallons in Minimum
Charge
Minimum Monthly
Charge
Commodity Charge for
Usage over Maximum
Allowable
518" &.'/4"12,000 $ r 7.75 $0.689/1000 Gallons
7"17,000 $2s.00 $0.689/1000 Gallons
I t/2"22,000 $32.2s $0.689/1000 Gallons
2"28,000 $41.00 $0.689/1000 Gallons
4"49,000 $72.2s $0.689/1000 Gallons
In calculating the above rates, a Federal Tax rate of l5Yo was used by the Company and
Commission Staff (See Line #28 from Attachment K from Staff Comments on Case No. FLS-W-
i2-01).
The company submits that the current tariff rates do not create a financial benefit to the
company because of the January 7,2078 tax rate reduction to a corporate Federal Tax rate of
2Tohbecause the Federal Tax rate used calculate the current rates during the last rate case was
l5% which is lower than the 2lYo tax rate implemented in the January 1,2018 Federal tax rate
reduction plan.
The company respectfully submits that no adjustment to its current rate structure is
needed as a result ofthe January 1,2018 Federal tax reduction plan.
DATED this 23'd day of March 2018.
Falls Water Co., Inc.
By K
K. Scott Bruce
General Manager
Falls Water Company
Calculatlon of Revenue Requlrement
r$-w-12-01
Lf
1
2
3
4
5
6
8
9
10
11
t7.
Rate Base from Att l, Ln 6
Required iate of Return
Return
7,82L,144
7.7t%
131,669 131,669
Net Op lncome (Excess) Att J, Ln 54
Additional lncome Requirement
., (87,197)
$44,471.
Taxable and Non-Taxable
Equity
Debt
Grossup
5L.37% 22,845 1.4L9't02 32,433
48.53% 21.626 1.110207 24,010
44,471 t6,443
13 Total Expenses; Att J, Ln 53
14 Total Revenue Requlrement
15
16
17 Grois Up Calculatlon
18 Gross Revenues
19 Less Uncollectibles
20 Less 2011 Regulatory Fees
2t
22
23 Net Revenues
24 StatelncomeT.x-B%
25
26 Federal lncome Tax Base
27
28 Fed |ncome Tax Rate 15%
29
30 Net Operating Revenue
31
32 Net to Gross Multiplier Equity Return
33
34 Gros$ Up Non-Taxable Debt R€turn
35
11,971
1,025,414
$1,169,054
0.900733
0.072059
0.828674
0.124301
0.704373
1.41970?
1.1102069
Attschment K
Case No. l,'LS-W-t2-01
StaffComrnenr
06lt5fi2
1.000000
0.096970
0.oo?7e7