20201222Suez COVID-19 Deferred Accounting Report.pdf

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SUEZ
Boise office – 8248 West Victory Road, Boise, ID 83709 – Tel [phone] – www.MySuezWater.com
Head office – 461 From Road, Suite 400, Paramus, NJ 07652 – Tel: [phone] – www.SUEZ-NA.com

RE: Deferred Accounting of Incremental Costs Associated with COVID-19

Dear Ms. Carlock,

Case No. GNR-U-20-03, Order 34718 dated July 8, 2020 addressed emergency related expenses incurred due
to the COVID-19 public health emergency. The Order authorized deferral of associated charges and outlined a
reporting requirement regarding costs incurred, benefits realized as a result of the CARES Act and NOL provisions,
decreases in expense related to reduced travel and training due to the stay-at home order, other reductions in
expenses, lost revenues due to waiver of late fees, and incremental bad debt expense over the 2019 level.

To date, the Company has incurred $16,777 of incremental COVID-19 related operating expenses such as
additional sanitization expenses, PPE costs, etc. not including labor costs for required isolation or quarantine. Bad
debt expense has not yet surpassed the 2019 level due to the suspension of collections activities for majority of
this year. While the Company has restarted its collections activities only for Commercial customers at this time,
no water service terminations for non-payment will take place until after the New Year. Therefore the Company
has not yet experienced the anticipated increase in bad debt expense.

The Company has also been able to realize offsetting cost savings by foregoing planned travel and securing lower
cost alternatives for some training programs. There are no lost revenues due to the waiver of late fees because
SUEZ customers are not charged late fees or interest on past due balances. Additionally, the Company has
analyzed the NOL provisions of the CARES Act and has no opportunity for benefit from those provisions.

The incremental costs described above have not yet surpassed the offsetting cost savings and therefore have not
been deferred on the company’s books at this time, but are being separately tracked. After incremental expenses
surpass offsetting savings, they will be deferred and presented to the Commission for review. At this time the
Company does not have deferred COVID-19 related costs on its books it is seeking authority to recover.

In order to limit the risk of COVID-19 exposure, this letter will not be mailed to the IPUC office, unless requested.
If there are any questions, you may contact me at [phone]. Thank you.

Sincerely,
Jarmila M. Cary
Director of Finance and Customer Service
SUEZ Idaho Inc.
Jarmila M. Cary
Director of Finance and Customer Service
8248 West Victory Road
Boise, ID 83709

December 22, 2020

Terri Carlock
Utilities Division Administrator
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074

RECEIVED
2020 December 22, AM 9:38
IDAHO PUBLIC
UTILITIES COMMISSION