20080124Comments.pdf

SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 1895
t"T.., ;
ii..t
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
. Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
BRIAN WATER CORPORATION FOR )
AUTHORITY TO INCREASE ITS RATES. )
)
)
)
)
CASE NO. BRN-W-07-1
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilties Commission, by and through its
Attorney of record, Scott Woodbury, Deputy Attorney General, and in response to the Notice of
Application and Notice of Modified Procedure issued on September 19,2007, submits the
following comments.
BACKGROUND
On September 10,2007, Brian Water Corporation (Brian Water, Company) fied a one-
page Applicatíon with the Idaho Public Utilties Commission (Commission) requesting an
increase in its rates. The Company did not request an effective date for its proposed new rates.
Brian Water Corporation was issued Certificate No. 260 in August 1965 by Commission
Order No. 7884. The Company has 46 residential customers in Brian Park Subdivision located
in Ada County, Idaho, a few miles east of Boise along old State Highway 21. The last rate case
from the Company was fied in 1998, Case No. BRN-W-98-1. In that case, the Commission
STAFF COMMENTS 1 JANUARY 24,2008
authorized a rate increase of 31 %, effective May 1, 1999. The curent rates are $10.50 per
month for the first four thousand gallons and $1.08 for each thousand gallons thereafter. The
average water use for Brian Water customers for 2006 was about 13,250 gallons per month. At
curent rates, this would result in an average monthly water bil of $20.49.
Brian Water states that a rate increase is needed to recover repair expenses, meter
replacements and power costs. The requested increase would change the monthly rates from
$10.50 per month to $15.00 per month with no increase in the commodity rate of$1.08 per
thousand-gallon. The proposed rates would result in an increase of$4.50 per month to $24.99.
AUDIT
Staff examined the records of Brian Water for the calendar years ended 2005, 2006 and
2007. This examination included, but was not limited to, the check register, invoices, accounts
receivable, property records and tax retus. The audit included an examination and analysis of
the anual reports fied with the Commission, prior rate cases, orders and conversations with Mr.
Tony Bowar, the sole stockholder and only employee of Brian Water. The audit of financial
records was conducted at the Commission's office.
Staff also conducted a meter reading test on October 11, 2007. The purposes of this test
were to: (1) observe meter reading procedures; (2) use the test results to verify the accuracy of
customer bilings and of accounts receivable; and (3) verify the existence of, and to observe the
use of, various items of equipment listed as property in anual regulatory reports.
Brian Water does not maintain conventional jourals and ledgers. Property records were
not available and were reconstructed by Staff. Moreover, some invoices and other documents
were not available or not provided. Mr. Bowar performs administrative and operations duties.
His administrative duties include various accounting fuctions, as well as billng and collections.
REVENUE REQUIREMENT
Staff found that the Company's records were at times incomplete, and, in the case of
property records for Plant-in-Service, unavailable. Staff was required to reconstruct property and
depreciation records from prior audit results and purchase records. Finding the Company's
records for 2006 to be substantially complete, Staff used 2006 as the test year for the Company's
STAFF COMMENTS 2 JANUARY 24, 2008
rate case. The recommended revenue requirement using the 2006 test year is $14,277 as
discussed below.
Revenues
Brian Water receives revenues solely from water sales to its residential customers. All
customers are in Brian Subdivision. In 2006, fort-six customers were served through individual
meters.
Brian Water reported a steady decrease in metered water sales between 2000 and 2006.
In 2000, metered sales of 9, 150,000 gallons were biled to forty-seven customers. This is an
average anual use of 194,681 gallons. In 2006, metered sales were reported as 7,311,860
gallons to 46 customers; an average use of 158,953 gallons per customer. This is an 18.3%
decrease in average use from 2000 to 2006. Additionally, reported sales for July, the peak month
of use, decreased 44.3% during the same period.
F or the test year 2006, reported sales of 7,311,860 gallons resulted in total reported
revenues of $11 ,558. Reported revenues were based upon meter reading calculations. The
timing of readings resulted in two errors: (1) including December 2005 sales and (2) excluding
December 2006 sales. Staff adjustments for these two items totaled $95, increasing 2006
revenues to $11,653 as shown on Attachments C and C.1.
Revenues and accounts receivable figures begin with meter readings. Curently
calculations are done using vintage software. The calculations, format and aging of accounts
receivable balances are insufficient in several aspects:
(1) Customer payments are often detailed on a list cited on deposit slips. These lists are
not retained. Consequently, individual account balances canot be verified.
(2) Bils are not calculated on a one month intervaL.
(3) Balances are not aged based on the fifteen day interval in Commission rules for
curent balances. (Tariff Biling 6.3)
Expenses
Brian Water is currently facing a trio of adverse financial circumstaces: (1) declining
metered sales; (2) a rate schedule based upon nearly decade old costs; and (3) the expenses of
maintaining an aging water system.
STAFF COMMENTS 3 JANUARY 24,2008
The Company reported total expenses of$12,388 for the test year 2006.
Attchment C lists the reported expenses and Staffs adjustments. Staff recommends anual
expenses of $11 ,442 for this rate case.
Adjustments to Annual Expenses
The records of Brian Water are maintained by Mr. Tony Bowar. In Order No. 22880
dated December 12, 1989, the Commission commented on the condition of records and Mr.
Bowar's lack of accounting knowledge, particularly with respect to depreciation. Mr. Bowar
freely admits this lack of knowledge. However, Mr. Bowar stated that he feels unable to afford
professional accounting assistace.
Staff recommends the following adjustments based on its audit and review. The
following adjustments, including known and measurable changes, are recommended by Staff,
decreasing total expenses by $946 from $12,388 to $11,442 as shown on Attachment C.
Purchased Power:
Water Testing:
Contracted Services - Other:
Depreciation:
Property Taxes:
DEQ Fees:
Income Taxes:
Interest Expense
Increase $95
Increase $228
Increase $33
Decrease $357
Decrease $7
Increase $230
Decrease $30
Decrease $1,138
Purchased Power
Reported expenses for purchased power were reported in the test year 2006 as they were
paid. This resulted În an understatement of power costs for the test year. Staff examined power
bils and constructed an allocation of power use to determine actual power use for the test year as
shown on Attachment Co2. This resulted in an increase of $95 in Purchased Power Expense.
STAFF COMMENTS 4 JANUARY 24, 2008
Water Testing
Water testing expenses were adjusted to reflect the anualized expense of the required
testing protocol as shown on Attachment C.3. Under this protocol, various water tests are
performed at scheduled intervals ranging from monthly to once every nine years. In the test year
2006, Brian Water did not pay expenses equal to the anualized portions of some tests which
occur in years other than the test year. Accordingly, test year expenses were adjusted to reflect
this portion of expenses. In addition, during Januar 2008, two water tests for nitrates were
accelerated from anually to quarerly. This more frequent testing and the related expense will
be required for at least one year. Water testing expenses were increased by $228 per year to
reflect all changes.
Contracted Services - Other
Casual record keeping practices and lack of accounting controls resulted in uneported or
misreported items in regulatory filings. Staff identified two expense transactions that were not
accounted for properly. These two transactions totaling $33 as shown on Attchment C.4 should
have been recorded in this category of expense. Staff made this adjustment.
Depreciation Expense
Reported depreciation expense is overstated because of a combination of factors. Mr.
Bowar acknowledges his lack of expertise in depreciation methodology, as stated above. This
overstatement resulted from a combination of several factors including: (1) depreciating
equipment over longer than the depreciable life; (2) lack of property records; and (3) failure to
amortize Contributions-In-Aid-of-Construction. Total adjustments to depreciation expense for
the test year included parial year depreciation on 2006 additions. Attchment C.5 shows the
anualized depreciation of $1 ,256, a reduction of $357, recommended for rate setting.
Property Taxes
Staff contacted the Ada County Assessors Offce to verify reported property taes for
2006. Propert taxes as shown on Attchment C.6 were found to be overstated by $7. Staff
made a $7 reduction to reflect actual expense for the 2006 test year.
STAFF COMMENTS 5 JANUARY 24, 2008
DEQ Fees
Brian Water reported no expenses for Department of Environmental Quality (DEQ) fees
for the test year 2006. Staff contacted DEQ to determine the correct fees. DEQ fees for Brian
Water Corporation are $5 per connection. Brian Water serves forty-six metered customers. This
would result in fees of$230 as shown on Attachment C.7. Staff made an adjustment of$230 to
increase reported expenses.
Income Taxes
Income taxes are reflected in the gross up on Attachment A rather than as an operating
expense. Staff removed reported income tax expense of $30.
Interest Expense
Brian Water reported interest expense of $988 plus additional interest of $150, totaling
$1,138. The loans were made to Mr. Bowar, the stockholder, and are available for mixed
business and personal use. As discussed below, Staff has treated these fuds as capital
contributions, increasing equity. Consequently, the interest is not reflected as an expense of the
corporation. Staff reduced interest expense by $1,138.
Rate Base
In its rate case request, Brian Water did not provide specific rate base details. In the
BRN- W-98-1 rate case, a rate base of $7,863 was used. In this rate case, Staff recommends a
rate base of$18,558 as shown on Attachment B. This amount consists of$59,358 for plant in
service (Attachment B.1), which includes additions for 2005 and 2006, Accumulated
Depreciation of ($24,288), and Unamortized CIAC of ($16,512).
Capital Structure and Rate of Return
Until 2005, the capital structure of Brian Water consisted of common stock and retained
earings. In 2005, the stockholder began using a personal loan to provide capital infusions.
These capital infusions were used to pay for additional plant-in-service, repairs and some
expenses. The capital infusion is a personal line of credit that will be treated as a capital
contribution in this case since there are mixed uses possible for the line of credit. Interest
STAFF COMMENTS 6 JANUARY 24,2008
expense on the line of credit will be paid by Mr. Bowar from the equity retur granted in this
case.
Brian Water did not specify a requested rate of retur. Staff recommends a retu on
equity of 12.0%. In several recent water company rate cases, the Commission has used this rate
of retur (Falls Water Co. in Case Nos. FLS-W-05-01 and FLS-W-07-01, Order Nos. 30027 and
30484; Capitol Water Co. in Case No. CAP-W-06-01, Order No. 30198; and Mornng View
Water Co. in Case No. MNV-W-06-01, Order No. 30420).
RATE DESIGN
The rate design analysis was based on an anual revenue requirement for the Company of
$14,277 and forty-six (46) customers on the water system with an average usage of about 15,000
gallons per month.
The Company proposes to raise its current minimum charge of$1O.50 per month to
$15.00 per month, or an increase of 43%. The Company is not requesting an increase in the
commodity charge of $1.08 per 1000 gallons. Nor is the Company requesting any change in the
4,000-gallon allowance included in the minimum charge.
Company's Current and Proposed Rates and the Impact on a Customer's Average Monthly Bil
Average Usage is 14,613 Gallons per month
Current Rates
$10.50 Minimum + $1.08/1000 over 4000 = Average Monthly Bil of$21.96
Company Proposed Rates
$15.00 Minimum + $1.08/1000 over 4000 = Average Monthly Bil of $26.44
Staff believes the Company's proposal to increase the minimum charge without
increasing the commodity charge is not in keeping with the Commission's historical approach to
designing rates for small water companies. First, it sends no conservation signal to customers
and secondly, it does not allow customers who consistently practice good water conservation the
opportity to impact their monthly bilL.
Consumption data over the past six years shows a gradual decline of approximately 25%
from 2002 through 2006. Staff canot explain the reason for the decline; however, in 2007
STAFF COMMENTS 7 JANUARY 24, 2008
consumption increased 10% over that in 2006. In 2007, consumption was 8,066,320 gallons and
more closely approximated the seven-year average anual usage of 8,338,881 gallons.
Therefore, Staff recommends using the 2007 consumption rate in the calculation of the revenue
requirement because it is more representative of normal usage. Curently, the minimum charge
accounts for 48% of the revenue for the Company and the commodity charge accounts for 52%
of the total revenue generated. Staff sees no reason to change the relationship of the customer
charge and the commodity charge. Therefore, Staff proposes that the minimum charge be
increased to $12.75 per month with no change to the 4,000-gallon allowance and increase the
commodity rate to $1.29 per 1000 gallons of usage over the allowance. This relationship is
maintained with the Staff proposed rates:
Ratio Between Minimum Charge and Commodity Charge
Current Rates
Usage
Commodity Charge
Minimum Charge
Number of Customers
5,858,320 Gallons Per Year
$1.08 Per 1000 Gallons
$10.50 Per Month
46
Staff Proposed Rates
Usage
Commodity Charge
Minimum Charge
Number of Customers
5,858,320 Gallons Per Year
$1.26 Per 1000 Gallons
$12.50 Per Month
46
Current Rates
Usage x Rate 1 1000 =
Minimum x # Customers x 12 months
Total
$6,326.99
$5,796.00
$12,122.99
52%
48%
100%
Staff Proposed Rates
Usage x Rate 1 1000 =
Minimum x # Customers x 12 months
Total
$7,377.00
$6,900.00
$14,277.00
52%
48%
100%
STAFF COMMENTS 8 JANUARY 24, 2008
METER READING AND BILLING
The Company curently reads its meters and bils its customers every other month. The
bil is comprised of the minimum charge for two months added to the accumulated consumption
over the two months less the 8000 gallons allowed and computed at the rate of$1.08 per 1000
gallons. If monthly cash flow is a problem, and it has been suggested that may be the case, then
Staff recommends that the Company read the meters and bil its customer every month. It has
been reported that the time necessary to read meters and bil customers requires less than three
hours.
UNACCOUNTED FOR WATER
The Company has two wells, the large well produces approximately 160 gpm and the
smaller well produces approximately 110 gpm. The pumps are not equipped with a flow meter
and consequently the exact amount of water pumped into the system is not being measured,
therefore the amount of unaccounted for water canot be calculated. Knowing this would allow
the Company to determine if there are any major leaks in the system, or if the old meters are not
recording all the usage.
Based on an analysis of energy use and the pump cures, Staff estimates lost and
unaccounted for water for the system is high. Possible reasons for this include defective meters
and water leaks.
Master Meter
As noted during our on site visit, well output is not curently metered. Staff recommends
placing a master meter at the pump outlets on both wells. This is estimated to cost about $1,200
for the primary well. Comparisons of the production volume from the master meter at the well,
with metered sales would reveal differences between gallons pumped and gallons biled. This
would provide an accurate measure of the Company's lost and unaccounted for water.
Individual Meters
Curently, replacing individual meters is a decision based on Mr. Bowar's subjective
assessment of water use. Staff recommends a program of meter testing and replacement
beginning in 2008. This program would involve systematic testing and replacement when
STAFF COMMENTS 9 JANUARY 24,2008
necessar of individual meters. The estimated cost of testing replacement meters would be about
$2500. In some cases, additional costs might be incurred for specific replacements due to unique
circumstaces requiring use of a backhoe, etc.
CUSTOMER RELATIONS
Rule 101 of the Commission's Utilty Customer Information Rules (UCIR) requires the
Company to provide notice to customers of the proposed rate increase and to publish a press
release for public information. The documents provided to the Commission do not meet the
requirements of the rule. The customer notice did not include information on how to contact the
Commission for filing comments. It also did not include the amount of increase expressed as a
percentage of current rates as required. Although the Company provided a copy of a letter about
the proposed rate increase addressed to the Idaho Statesman, it did not actually send the letter nor
has a press release been sent to the local media as required by Rule 101. While there is concern
regarding the Company's failure to comply with Commission's requirements, the Commission
has since published its own press release and held a workshop to provide information to the
public. The Commission has received no written comments from customers regarding this rate
case and no customers attended the workshop, which could be due to lack of proper notification
from the Company.
Rule 101 of the UCIR also requires the Company to provide a written explanation of its
rate schedule to each new customer and all existing customers on an anual basis. Curently, the
Company does not provide a wrtten explanation to any of its customers. Staff recommends that
the Company distribute its Explanation of Rates to all customers on an anual basis and maintain
copies to distribute to new customers. Staff is willng to assist the Company in developing the
required information.
Rule 701 of the Commission's Utilty Customer Relations Rules (UCRR) requires the
Company to provide a summar of the Commission's Rules and Regulations when it signs up
new customers and provide all customers a copy on an anual basis. Curently, the Company
does not provide the Summar of Rules to any of its customers although the Commission's
Records indicate that the Company did so at one time. Staf recommends that the Company
create and distribute a Summar of Rules as required by Rule 701. Staff is willng to assist the
STAFF COMMENTS 10 JANUARY 24, 2008
Company in preparing a Summar of Rules. Staff notes that the Explanation of Rates can be
combined with the Sumar of Rules if the Company wishes to do so.
Rules 201 and Rule 305 of the UCRR list the information required on bils and past due
notices mailed to customers. The Company's bils and notices do not meet the requirements of
those Rules. Examples of missing information include the itemization of charges on bils, due
date of the bils, and Commission contact information on notices. Staff recommends the
Company update all documentation to comply with Commission requirements and is willng to
offer its assistance to the Company.
The records at the Commission reveal that the section of the Company's tariff addressing
the General Rules and Regulations dates back to 1989 and is not in compliance with the
Commission's curent Rules and Regulations. Staff recommends that the Company update this
section of the taiff and is wiling to offer its assistance.
Copies of the Company's bils provided to the Commission indicate that the Company is
not following its approved tariff specifying that it wil bil customers monthly. Bil copies
indicate that the Company often bils for two-month periods or longer. This practice also
decreases customers' abilty to properly budget their finances. Staff recommends that the
Company begin monthly biling in accordance with its tarff.
The Company states that it had no complaints from customers for the past three years,
and the Consumer Staff has not received any informal complaints and only one inquiry for this
time period. This canot be constred as an indication of customer satisfaction levels because
the customers have not been provided with the Summar of Rules, the Company's Explanation
of Rates, or Commission contact information in recent years as required under the UCIR and
UCRR.
STAFF RECOMMENDS:
1. A 2006 test year.
2. A 12% return on equity.
3. Monthly bilings as the Company's tarff requires.
4. A new computer program be obtained or the current program be reprogrammed to
calculate monthly bilings and accounts receivable.
STAFF COMMENTS 11 JANUARY 24,2008
5 Contributions in Aid of Constrction (CIAC) be reduced by the 2005
and 2006 amortization. CIAC is a reduction to rate base.
6. A rate base of $18,558.
7. An anual revenue requirement of $14,277. This is an increase of $2,624 over
test year revenues and results in an average rate increase of 22.5%.
8. A monthly minimum charge of$12.50, which includes 4,000 gallons of water
plus a commodity charge of $1.26 per thousand gallons.
9. That tariffs be updated to satisfy the Commission's rules.
10. That bils and notices be revised to comply with the Commission's rules.
11. That an Explanation of Rates and Summary of Rules be distributed to new
customers at the time of sign-up and to existing customers on an anual basis as
required by Commission rules.
12. Installation of a master meter on the Company's primar and backup wells.
13. A program of testing and replacement of individual meters.
Respectfully submitted this c9Lf t:y of Januar 2008.
Scott Woodbur
Deputy Attorney General
Technical Staff: John Nobbs
Dan Graves
Chrs Hecht
i:/umisc/comments/bmw07.lswjncwhdg
STAFF COMMENTS 12 JANUARY 24, 2008
Brian Water Co.
Revenue Requirement Calculation
CYE 2006
Return on Rate base
Tax Gross Up multiplier
Annual Operating Expenses Incl Depr
Total Revenue Required
Less: Current Revenue
Increase Needed
% Increase
Tax Calculation
Beginning
State Taxes at 7.6% =
Federal Taxable
Federal Taxes at 15.0% =
Total
Multiplier: Net to Gross
Attachment A
$2,227 Attachment B
1.273
$2,835
11,442 Attachment C
14,277
11,653
2,624
22.5%
100.00%
-7.60%
92.40%
-13.86%
78.54%
127.32%
Attachment A
Case No. BRN-W-07-1
Staff Comments
01/24/08
Brian Water Co.
Rate Base and Rate of Return Calculation
CYE 2006
Plant in Svc
Working Capital
Accum Depr
Unamortized CIAC
Rate Base
BRN-W-98-1 Changes
31-Dec-97
$45,432
$1,165
($15,770)
($16,972)
$13,855
$13,926
($1,165)
($8,518)
$460
$5,868
Attachment B
BRN-W-07-1
31-Dec-06
$59,358
$0
($24,288)
($16,512)
$18,558
Rate of Return = 12%$2,226.96
Attchment B
Case No. BRN-W-07-1
Staff Comments
01124/08
Br
i
a
n

W
a
t
e
r

C
o
.
At
t
a
c
h
m
e
n
t

B
.
1
An
a
l
y
s
i
s

o
f

U
t
i
l
t
y

P
l
a
n
t

i
n

S
e
r
v
i
c
e
CY

1
9
9
7

t
h
r
u

2
0
0
7
46

M
e
t
e
r
s
Or
g
la
n
d
St
r
&

I
m
p
We
l
l
s
Re
s
e
r
v
Pu
m
p
g
Ma
i
n
s
Me
t
e
r
s
Of
f
c
e
Sh
p
E
q
p
t
To
t
a
l
Ba
I
1
2
-
3
1
-
9
7
52
4
.
0
0

1
,
5
0
0
.
0
0

3
,
2
5
1
.
3
4

2
,
7
6
0
.
5
9

9
0
0
.
0
0
11
,
5
8
2
.
4
5
18
,
8
3
6
.
4
4
4,
6
9
8
.
2
1
1,
1
8
6
.
0
0
19
2
.
8
9
45
,
4
3
1
.
9
2
19
9
8
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
19
9
9
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
20
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
16
7
.
9
9
0.
0
0
16
7
.
9
9
20
0
1
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
20
0
2
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
20
0
3
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
20
0
4
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
Ad
d
i
t
i
o
n
s
20
0
5
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
4,
1
7
8
.
6
2
6,
3
7
9
.
5
4
0.
0
0
0.
0
0
0.
0
0
10
,
5
5
8
.
1
6
Re
m
o
v
e
d
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
(1
,
0
2
6
.
0
0
)
0.
0
0
0.
0
0
0.
0
0
0.
0
0
(1
,
0
2
6
.
0
0
)
Ad
d
i
t
i
o
n
s
20
0
6
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
4,
3
8
3
.
9
9
0.
0
0
11
8
.
2
3
0.
0
0
0.
0
0
4,
5
0
2
.
2
2
Re
m
o
v
e
d
0.
0
0
0.
0
0
0.
0
0
0.
0
0
0.
0
0
(2
7
5
.
8
5
)
0.
0
0
0.
0
0
0.
0
0
0.
0
0
(2
7
5
.
8
5
)
Ba
l

a
t

1
2
-
3
1
-
2
0
0
6
52
4
.
0
0

1
,
5
0
0
.
0
0

3
,
2
5
1
.
3
4

2
,
7
6
0
.
5
9

9
0
0
.
0
0
18
,
8
4
3
.
2
1
25
,
2
1
5
.
9
8
4,
8
1
6
.
4
4

1
,
3
5
3
.
9
9
19
2
.
8
9
59
,
3
5
8
.
4
4
oc
:
n
;
¡
~
S
-

~

~
~:
:

(
1

~
--
n
z
i
:
~
0

0

S
3'

(
1
3
o
:

a
(1

:
:

o
:
::

z
.
li

~

;
-
,o-.,-
Brian Water Co.
Schedule of Audit Adjustments
CYE 2006
CY Ended
Revenues
Unmetered
Metered Sales-Res.
Total Revenues
Operating Expenses
Labor-O&M
Labor- A&G
Pensions & Benefits
Purchased Power
Mat & Suppl - O&M
Mat & Suppl - A&G
Contr Svs-Profess
Contr Svs-Watr Testg
Contr Svs-Other
Bad Debts Expense
Miscellaneous
Depreciation
Regulatory Fees
Propert Taxes
DEQ fees
Other Fees
Income Taxes
Interest Expense
Total Expenses
Net Income
2006
Reported Audit Adjs
o
11,558
11,558
3,100
2,920
o
1,173
114
948
183
324
414
o
214
1,613
50
167
o
o
30
$1,138
$12,388
($830)
o
o
o
95
o
o
o
228
33
o
o
(357)
o
($7)
230
o
(30)
($1,138)
($946)
$1,041
Attachment C
Total
o
95
95
o
11,653 Attachment C.1
11,653
o
o
3,100
2,920
o
1,268 Attachment C.2
114
948
183
552 Attachment C.3
447 Attachment C.4
o
214
1,256 Attachment C.5
50
160 Attachment C.6
230 Attachment C.7
o
o Reflected in Gross-up
o Reflected in Equity as contributed capital
$11,442
$211
Attachment C
Case No. BRN-W-07-1
Staff Comments
01124/08
BRIAN WATER CORPORATION
Analysis of Revenue adjustments
CYE 2006
Reported Revenues - 2006
Sales - Dec 05 to Feb 06 Reading
Dec 05 Sales
Sales - Feb to Apr 2006 Reading
Sales - Apr Jun 2006 Reading
Sales - Jun to Jul 2006 Reading
Sales - Jul to Sep 2006 Reading
Sales - Sep to Dec 2006 Reading
Sales - Dec 06 to Feb 07 Reading
Jan 2007 sales
Total 2006 Sales
Difference
1,219.00
(609.00)
1,133.00
1,979.00
2,203.00
2,967.00
2,056.00
1,410.00
(705.00)
Attachment C.1
$11,558
$11,653 /
$95
Attachment C.1
Case No. BRN-W-07-1
Staff Comments
01/24/08
At
t
a
c
h
m
e
n
t

C
.
2
Br
i
a
n

W
a
t
e
r

C
o
.
An
a
l
y
s
i
s

o
f

A
n
n
u
a
l

P
o
w
e
r

C
o
s
t
CY
E

2
0
0
6
20
0
6
Ch
a
r
g
e
s
0.
0
0
31
.
2
5
36
.
9
2
36
.
3
5
50
.
7
5
14
5
.
4
0
15
9
.
2
6
18
2
.
8
4
18
6
.
9
6
14
7
.
9
5
12
8
.
9
0
71
.
4
8
83
.
4
9
6.
1
5
$1
,
2
6
7
.
7
0
20
0
6

2
0
0
6
Da
y
s
S
v
c

K
w
H
o 26 32 30 29 32 29 30 31 30 30 33 30 3
36
5
To
t
a
l
Ch
a
r
g
e
s
39
.
0
9
36
.
0
6
36
.
9
2
36
.
3
5
50
.
7
5
14
5
.
4
0
15
9
.
2
6
18
2
.
8
4
18
6
.
9
6
14
7
.
9
5
12
8
.
9
0
71
.
4
8
83
.
4
9
65
.
6
2
.
$1
,
3
7
1
To
t
a
l

T
o
t
a
l
Be
g

D
a
t
e

E
n
d

D
a
t
e

D
u
e

D
a
t
e

D
a
y
s
S
v
c

K
w
H
28
-
N
o
v
-
0
5

2
8
-
D
e
c
-
0
5

1
8
-
J
a
n
-
0
6

3
0

4
9
4
28
-
D
e
c
-
0
8

2
7

-
J
a
n
-
0
6

1
5
-
F
e
b
-
0
6

3
0

4
5
2
27
-
J
a
n
-
0
6

2
8
-
F
e
b
-
0
6

1
7
-
M
a
r
-
0
6

3
2

4
6
4
28
-
F
e
b
-
0
6

3
0
-
M
a
r
-
0
6

1
8
-
A
p
r
-
0
6

3
0

4
5
6
30
-
M
a
r
-
0
6

2
8
~
A
p
r
-
0
6

1
7
-
M
a
y
-
0
6

2
9

6
5
5
28
-
A
p
r
~
0
6

3
0
-
M
a
y
-
0
6

1
6
-
J
u
n
-
0
6

3
2

1
9
6
3
30
-
M
a
y
-
0
6

2
8
-
J
u
n
-
0
6

1
8
-
J
u
l
-
0
6

2
9

2
6
4
8
28
-
J
u
n
-
0
6

2
8
-
J
u
l
-
0
6

1
6
-
A
u
g
-
0
6

3
0

3
5
2
9
28
-
J
u
l
-
0
6

2
8
-
A
u
g
-
0
6

1
5
-
S
e
p
-
0
6

3
1

3
6
8
8
28
-
A
u
g
-
0
6

2
7

-
S
e
p
~
0
6

1
6
-
0
c
t
-
0
6

3
0

2
7
9
0
27

-
S
e
p
-
0
6

2
7

-
O
c
t
-
0
6

1
6
-
N
o
v
-
0
6

3
0

2
0
2
9
27

-
O
c
t
-
0
6

2
9
-
N
o
v
-
0
6

1
8
-
D
e
c
-
0
6

3
3

1
0
2
2
29
-
N
o
v
-
0
6

2
9
-
D
e
c
-
0
6

1
9
-
J
a
n
-
0
7

3
0

1
2
2
9
29
-
D
e
c
-
0
6

3
0
-
J
a
n
-
0
7

1
6
-
F
e
b
-
0
7

3
2

9
2
1
To
t
a
l
s

4
2
8

2
2
,
3
4
0
o
39
2
46
4
45
6
65
5
19
6
3
26
4
8
35
2
9
36
8
8
27
9
0
20
2
9
10
2
2
12
2
9
86
20
,
9
5
1
No
t
e
1
:
e
x
c
l
u
d
e
s

l
a
t
e

c
h
a
r
g
e

o
f

$
0
.
3
9

f
o
r

p
r
e
v
i
o
u
s

b
i
l
l
.
OC
/
n
~
~
S
"

~

~
N:
:

(
l

~
:!
n
z
e
-
~
0

0

S
~
~

g
(l

:
i

ñ
::

z
.
..

,

N
'"

~
io-.,-
Brian Water Corp.
Analysis of Minimum WaterTesting Expenses Attachment C.3
2008
PWS # 104010017
Test Type Frequency Testslyr Costlest Annual Cost
Well #1 - Primary
Nitrate Quarterly 4.00 16.00 $64.00
Arsenic & Sodium Every 3 yrs 0.33 31.00 $10.23
Cyanide Every 3 yrs 0.33 29.00 $9.57
Flouride Every 3 yrs 0.33 18.50 $6.11
IOCs Every 3 yrs 0.33 147.00 $48.51
Radium 226 & 228 Every 3 yrs 0.33 150.00 $49.50
SOCs Group Every 3 yrs 0.33 181.50 $59.90
VOC Every 3 yrs 0.33 187.00 $61.71
Gross Alpha Every 6 yrs 0.17 50.00 $8.50
Uranium Every 6 yrs 0.17 10.00 $1.70
Nitrite 9 yrs 0.12 14.50 $1.74
Well #2 - Backup
Nitrate Quarterly 4.00 16.00 $64.00
Nitrite Every 9 yrs 0.12 14.50 $1.74
VOCS Group Every 9 yrs 0.12 187.00 $22.44
Distribution System
Coliform Bacteria Monthly 12.00 11.00 $132.00
Lead and Copper Every 3 yrs 0.33 31.00 $10.23
.Average Annual Cost 551.87
Reported Testing Costs 324.00
Difference $227.87
Brian Water Corp. was moved from annual to quarterly testing for nitrates in Jan 2008;
this testing protocol will continue for at least one year.
Sources Brandon Lowder at DEQ
Wally Baker at Bur of Labs
Attachment C.3
Case No. BRN-W-07-1
Staff Comments
01/24/08
BRIAN WATER CORPORATION
Analysis of Contracted Services-Other
CYE 2006
Attachment C.4
Reported Expense 2006
Ck#
1978
1999
Cash
$414
$
28
414
5
$447
$33
2006 Payee
6-Jun Visa
12-Nov Mr. Rooter
11-Dec Air Valve
Total
Difference
Attchment C.4
Case No. BRN-W-07-1
Staff Comments
01/24/08
BRIAN WATER CORPORATION Attachment C.5
Schedule of Depreciation Adjustments
as of December 31, 2006
Reported Deprection Expense:
Sub#Name 2000 2001 2002 2003 2004 2005 2006 Total
304 Str& Imp 48.77 48.77 48.77 48.77 48.77 48.77 48.77 341.39
305 Resvr 0 0 0 0 0 0 0 0
307 Wells 41.41 41.41 41.41 41.41 41.41 41.41 41.41 289.87
311 PwrPump 555.94 555.94 555.94 555.94 555.94 773.15 983.58 4,536.43
331 Mains 188.36 188.36 188.36 188.36 188.36 258.75 258.75 1,459.30
334 Meters 140.94 140.94 140.94 140.94 140.94 140.94 144.49 990.13
340 Off F&E 132.42 132.42 132.42 132.42 132.42 132.42 132.42 926.94
343 Shop 3.86 3.86 3.86 3.86 3.86 3.86 3.86 27.02
Totals 1,111.70 1,111.70 1,111.70 1,111.70 1,111.70 1,399.30 1,613.28 8,571.08
Actual Depreciation Expense
Sub#Name
304 Str& Imp 48.77 48.77 48.77 48.77 48.77 48.77 48.77 341.39
305 Resvr 0 0 0 0 0 0 0 0
307 Wells 41.41 41.41 41.41 41.41 41.41 41.41 41.41 289.87
311 PwrPump 555.94 555.94 555.94 555.94 555.94 612.31 601.79 4,036.47
331 Mains 188.36 188.36 188.36 188.36 188.36 274.71 322.55 1,539.06
334 Meters 140.94 140.94 140.94 140.94 140.94 140.94 142.72 986.58
340 Off F&E 132.42 132.42 132.42 132.42 132.42 132.42 132.42 937.24
343 Shop 3.86 3.86 3.86 3.86 3.86 3.86 1.77 27.02
Totals 1,111.70 1,111.70 1,111.70 1,111.70 1,111.70 1,254.42 1,291.43 8,157.63
2006 depreciation from schedule above $1,291.43
Add: to Annualize 2006 Pumping additions - 11 months $192.94
Add to Annualize 2006 Meter Additions - 6 months $1.77
2006 CIAC Amortization (229.93)
Total annualized Depreciation Expense $1,256.21
Difference $357.07
Attachment C.5
Case No. BRN-W-07-1
Staff Comments
01/24/08
Brian Water Co.
Analysis of Property Tax Expenses
CYE 2006
Attachment C.6
2006 Ada propTx - 3" equivalent pipeline miles
1sthalfYr 80.21
2nd haW Yr 8021
Annual Total 160.42
Reported
Difference
167.00
(6,58)
Attachment C.6
Case No. BRN-W-07-1
Staff Comments
01/24/08
BRIAN WATER CORPORATION
Schedule of DEQ Fees
,CYE 2006
Attachment C.7
DEQ Fees - Per connection
Number meters
Total annual Fees
$5.00
46
$230.00
Attachment C.7
Case No. BRN-W-07-1
Staff Comments
01/24/08
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 24TH DAY OF JANUARY 2008,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. BRN-W-07-01, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
TONY BOWAR
BRIAN WATER CORPORATION
5120 OVERLAND RD, SUITE C #228
BOISE ID 83705
~~-
SECRETA
CERTIFICATE OF SERVICE