2001Annual Report.pdf

RECEIVED @
FILED O
ANNUALREN RTUTILITIESC0hrilSSu
OF
Capital Idator Corporation
NAME
76?6 F1dorado Rnise.Idahn 83704
ADDRESS
TO THE
IDAHO PUBLIC
UTILITIES COMMISSION
FOR THE
YEAR ENDED December 31,2001
ANNUAL REPORT
OF
Capitol Water Corporation
NAME
2626 Eldorado Boise,Idaho 83704
ADDRESS
TO THE
IDAHO PUBLIC
UTILITIES COMMISSION
FOR THE
YEAR ENDED:December 31,2001
STANTON,JACKSON &CO.,PLLC
ACCOUNTING &CONSULTING
415 South 4*Street
Post Office Box 1693
Boise,Idaho 83701
Board of Directors
Capitol Water Corporation
Boise,Idaho
We have compiled the balance sheet of CAPITOL WATER CORPORATION,as of December 31,
2001,and the related statements of income and retained earnings for the year then ended in the
accompanying prescribed form of the Idaho Public Utilities Commission,in accordance with
Statements on Standards for Accounting and Review Services issued by the American Institute of
Certified Public Accountants.We have also compiled the supplementary schedules of revenue and
expense detail,plant in service detail,accumulated depreciation detail,capital stock detail,detail of
long-term debt and system engineering data.
Our compilation is limited to presenting in the form prescribed by the Idaho Public Utilities
Commission information that is the representation of management.We have not audited or reviewed
the financial statements and supplementary information referred to above and,accordingly,we do not
express an opinion or any other form of assurance on them.
These financial statements and supplementary information are presented in accordance with the
requirements of the Idaho Public Utilities Commission,which differ from generally accepted
accounting principles.Accordingly,these financial statements are not designed for those who are not
informed about such differences.
Boise,Idaho
May 13,2002
Phone [phone] Fax [phone] ·Email [e-mail]
ANNUAL REPORT FOR WATER UTILITIES TO
THE IDAHO PUBLIC UTILITIES COMMISSION
FOR THE YEAR ENDING December 31,2001
COMPANY INFORMATION
1 Give full name of utility:Capitol Water Corporation
2 Date of Organization:April 7,1959
3 Organized under the laws of the state of:Idaho
4 Address of Principal Office (number &street)2626 Eldorado
5 P.O.Box (if applicable)
6 City Boise
7 State Idaho
8 Zip Code 83704
9 Organization (proprietor,partnership,Corp.)Corporation
10 Towns,Counties served Boise
Ada County
11 Are there any affiliated Companies?No
If yes,attach a list with names,addresses &descriptions.Explain any services
provided to the utility.
12 Contact Information:Name Phone No.
President (Owner)H.Robert Price 375-0931
Vice President Margaret Price 801-581-0331
Secretary Bonnie Price 375-0931
General Manager H.Robert Price 375-0931
Complaints or Billing Bonnie Price 375-0931
Engineering H.Robert Price 375-0931
Emergency Service H.Robert Price 375-0931
Accounting Stanton,Jackson,&Co.,PLLC 345-2350
13 Were any water systems acquired during the year or any additions/deletions made
to the service area during the year?No
If yes,attach a list with names,addresses &descriptions.Explain any servicesprovidedtotheutility.
14 Where are the Company's books and records kept?
Street Address 2626 Eldorado
City Boise
State Idaho
Zip 83704
Page 1 Revised Nov.97
NAME:Capitol Water Corporation
COMPANY INFORMATION (Cont.)
For the Year Ended:December 31,2001
15 Is the system operated or maintained under a
sentice contract?No
16 If yes:With whom is the contract?
When does the contract expire?
What services and rates are included?
17 Is water purchased for resale through the system?No
18 If yes:Name of Organization
Name of owner or operator
Mailing Address
City
State
Zip
Gallons/CCF $Amount
Water Purchased
19 Has any system(s)been disapprovedby the
Idaho Division of Environmental Quality?Yes
If yes,attach full explanation
20 Has the Idaho Division of Environmental Quality
recommended any improvements?Yes
If yes,attach full explanation
21 Number of Complaints received during year concerning:
Quality of Sentice -Requests for Rust Remover 51
High Bills 0
Disconnection 0
22 No.of Customers involuntarily disconnected 10
23 Date customers last received a copy of the Summary
of Rules required by IDAPA 31.21.01.701?May 1,2001
Attach a Copy of the Summary
24 Did significant additions or retirements from the
Plant Accounts occur during the year?No
if yes,attach full explanation
and an updated system map
See Accountant's Report
Page 2 Revised Nov.97
NAME:Capitol Water Corporation
REVENUE &EXPENSE DETAIL
For the Year Ended:December 31,2001
ACCT #DESCRIPTION
400 REVENUES
1 460 Unmetered Water Revenue $374,778
2 461.1 Metered Sales -Residential
3 461.2 MeteredSales -Commercial,Industrial 76,466
4 462 Fire Protection Revenue 4,465
5 464 Other Water Sales Revenue 113,864 ***(Includes $110,439 of
6 465 Irrigation Sales Revenue surcharge income)
7 466 Sales for Resale
8 400 Total Revenue (Add Lines 1 -7)$569,573
(also enter result on Page 4,line 1)
9 *DEQ Fees Billed separately to customers 9,968 Booked to Acct #165.0
10 **Hookup or Connection Fees Collected Booked to Acct #
11 ***Commission Approved Surcharges Collected 110,439 Booked to Acct #460.4
401 OPERATING EXPENSES
12 601.1-6 Labor -Operation &Maintenance 37,682
13 601.7 Labor -Customer Accounts 32,313
14 601.8 Labor -Administrative &General 32,336
15 603 Salaries,Officers &Directors 47,240
16 604 Employee Pensions &Benefits 26,394
17 610 Purchased Water
18 615-16 Purchased Power &Fuel for Power 59,696
19 618 Chemicals 28,641
20 620.1-6 Materials &Supplies -Operation &Maint.12,274
21 620.7-8 Materials &Supplies -Administrative &General 15,270
22 631-34 Contract Services-Professional 10,140
23 635 Contract Services -Water Testing
24 636 Contract Services -Other 765
25 641-42 Rentals -Property &Equipment
26 650 Transportation Expense 6,910
27 656-59 Insurance 13,817
28 660 Advertising
29 666 Rate Case Expense (Amortization)
30 667 Regulatory Comm.Exp.(Other except taxes)
31 670 Bad Debt Expense 91
32 675 Miscellaneous 11,407
33 Total Operating Expenses (Add lines 12 -32,also enter on Pg 4,line 2)$334,976
See Accountant's Report
Page 3 Revised Nov.97
NAME:Capitol Water Corporation
INCOME STATEMENT
For the Year Ended:December 31,2001
ACCT #DESCRIPTION
1 Revenue (From Page 3,line 8)$569,573
2 Operating Expenses (From Page 3,line 33)$334,976
3 403 Depreciation Expense 96,626
4 406 Amortization,Utility Plant Acquisition Adj.
5 407 Amortization Exp.-Other
6 408.10 Regulatory Fees (PUC)1,597
7 408.11 Property Taxes 29,445
8 408.12 Payroll Taxes 11,560
9A 408.13 Other Taxes (list)DEQ Fees
98 Irrigation 106
9C Vehicles 70
9D
10 409.10 Federal income Taxes 1,764
11 409.11 State Income Taxes 26
12 410.10 Provision for Deferred Income Tax -Federal
13 410.11 Provision for Deferred income Tax -State
14 411 Provision for Deferred Utility income Tax Credits
15 412 Investment Tax Credits-Utility
16 Total Expenses from operations before interest (add lines 2-15)$476,170
17 413 Income From Utility Plant Leased to Others
18 414 Gains (Losses)From Disposition of Utility Plant
19 Net Operating Income (Add lines 1,17 &18 less line 16)$93,403
20 415 Revenues,Merchandizing Jobbing and Contract Work
21 416 Expenses,Merchandizing,Jobbing &Contracts
22 419 interest &Dividend Income 0
23 420 Allowance for Funds used During Construction
24 421 Miscellaneous Non-Utility income
25 426 Miscellaneous Non-Utility Expense
26 408.20 Other Taxes,Non-Utility Operations
27 409-20 Income Taxes,Non-Utility Operations
28 Net Non-Utility Income (Add lines 20,22,23 &24 less lines 21,25,26,&27)0
29 Gross Income (add lines 19 &28)$93,403
30 427.3 Interest Exp.on Long-Term Debt 35,356
31 427.5 Other interest Charges
32 NET INCOME (Line 29 less lines 30 &31)(Also Enter on Pg 9,Line 2)$58,047
See Accountant's Report
Page 4 Revised Nov.97
NAME Capitol Water Corporation
ACCOUNT 101 PLANT IN SERVICE DETAIL
For the Year Ended:December 31,2001
Balance Added Removed BalanceSUBBeginningDuringDuringEndofACCTDESCRIPTIONofYearYearYearYear
1 301 Organization $3,584 $3,584
2 302 Franchises and Consents 38,469 2,500 40,969
3 303 Land &Land Rights 80,873 80,873
4 304 Structures and Improvements 112,408 2,801 115,209
5 305 Reservoirs &Standpipes 3,528 3,528
6 306 Lake,River &Other Intakes
7 307 Wells 544,919 13,389 558,308
8 308 Infiltration Galleries &Tunnels
9 309 Supply Mains
10 310 Power Generation Equipment
11 311 Power Pumping Equipment 154,970 ,678 155,648
12 320 Purification Systems 21,380 1,993 23,373
13 330 Distribution Reservoirs &Standpipes
14 331 Trans.&Distrib.Mains &Accessorie:1,126,444 12,052 1,138,496
15 333 Services 507,129 24,031 531,160
16 334 Meters and Meter Installations 90,246 1,861 92,107
17 335 Hydrants
18 336 Backflow Prevention Devices
19 339 Other Plant &Misc.Equipment
20 340 Office Furniture and Equipment 16,596 689 17,285
21 341 Transportation Equipment 91,342 326 .91,668
22 342 Stores Equipment
23 343 Tools,Shop and Garage Equipment 9,524 1,752 11,276
24 344 Laboratory Equipment
25 345 Power Operated Equipment
26 346 Communications Equipment
27 347 Miscellaneous Equipment
28 348 Other Tangible Property 107 107
29 TOTAL PLANT IN SERVICE $2,801,519 $62,072 $0 $2,863,591
(Add lines 1 -28)Enter beginning &end of year totals on Pg 7,Line 1
See Accountant's Report
Page 5 Revised Nov.97
NAME:Capitol Water Corporation
ACCUMULATED DEPRECIATION ACCOUNT 108.1 DETAIL
For the Year Ended:December 31,2001
Depreciation Balance Balance IncreaseSUBRateBeginningEndoforACCTDESCRIPTION%of Year Year (Decrease)
1 304 Structures and Improvements $68,123 $70,854 $2,731
2 305 Reservoirs &Standpipes 2,512 2,558 46
3 306 Lake,River &Other Intakes
4 307 Wells 143,744 163,032 19,288
5 308 Infiltration Galleries &Tunnels
6 309 Supply Mains
7 310 Power Generation Equipment
8 311 Power Pumping Equipment 82,702 86,544 3,842
9 320 Purification Systems 19,451 .19,588 137
10 330 Distribution Reservoirs &Standpipes
11 331 Trans.&Distrib.Mains &Accessories 667,209 705,927 38,718
12 333 Services 217,839 233,791 15,952
13 334 Meters and Meter Installations 38,888 41,885 2,997
14 335 Hydrants
15 336 Backflow Prevention Devices
16 339 Other Plant &Misc.Equipment
17 340 Office Furniture and Equipment 9,683 11,600 1,917
18 341 Transportation Equipment 38,953 53,510 14,557
19 342 Stores Equipment
20 343 Tools,Shop and Garage Equipment 6,825 7,749 924
21 344 Laboratory Equipment
22 345 Power Operated Equipment
23 346 Communications Equipment
24 347 Miscellaneous Equipment
25 348 Other Tangible Property 52 56 4
26 TOTALS (Add Lines 1 -25)$1,295,981 $1,397,094 $101,113
Enter beginning &end of year totals on Pg 7,Line 7
See Accountant's Report
Page 6 Revised Nov.97
NAME:Capitol Water Corporation
BALANCE SHEET
For the Year Ended:December 31,2001
ASSETS Balance Balance Increase
Beginning End of or
ACCT DESCRIPTION of Year Year (Decrease)
1 101 Utility Plant in Service (From Pg 5,Line 29)$2,801,519 $2,863,591 $62,072
2 102 Utility Plant Leased to Others
3 103 Plant Held for Future Use
4 105 Construction Work in Progress
5 114 Utility Plant Acquisition Adjustment
6 Subtotal (Add Lines 1 -5)2,801,519 2,863,591 62,072
7 108.1 Accumulated Depreciation (From Pg 6,Line 26)1,295,981 1,397,094 101,113
8 108.2 Accum.Depr.-Utility Plant Lease to Others
9 108.3 Accum.Depr.-Property Held for Future Use
10 110.1 Accum.Amort.-Utility Plant in Service
11 110.2 Accum.Amort.-Utility Plant Lease to Others
12 115 Accumulated Amortization-Acquisition Adj.
13 Net Utility Plant (Line 6 less lines 7 -12)1,505,538 1,466,497 (39,041)
14 123 Investment in Subsidiaries
15 125 Other Investments
16 Total Investments (Add lines 14 &15)
17 131 Cash 60,163 18,826 (41,337)
18 135 Short Term Investments 45,800 48,630 2,830
19 141 Accts/Notes Receivable -Customers 41,449 51,119 9,670
20 142 Other Receivables
21 145 Receivables from Associated Companies
22 151 Materials &Supplies Inventory 7,197 7,359 162
23 162 Prepaid Expenses 1,565 1,690 125
24 173 Unbilled (Accrued)Utility Revenue
25 143 Provision for Uncollectable Accounts
26 Total Current (add lines 17 -24 less line 25)156,174 127,624 (28,550)
27 181 Unamortized Debt Discount &Expense
28 183 Preliminary Suntey &Investigation Charges
29 184 Deferred Rate Case Expenses
30 186 Other Deferred Charges
31 Total Assets (Add lines 13,16 &26 -30)$1,661,712 $1,594,121 $(67,591)
See Accountant's Report
Page 7 Revised Nov.97
NAME:Capitol Water Corporation
BALANCE SHEET
For the Year Ended:December 31,2001
LIABILITIES &CAPITAL Balance Balance Increase
Beginning End of or
ACCT #DESCRIPTION of Year Year (Decrease)
1 201-3 Common Stock $10,000 $10,000
2 204-6 Preferred Stock
3 207-13 Miscellaneous Capital Accounts 29,200 29,200
4 214 Appropriated Retained Earnings
5 215 Unappropriated Retained Earnings 660,885 714,766 $53,881
6 216 Reacquired Capital Stock
7 218 Proprietary Capital
8 Total Equity Capital (Add Lines 1-5+7less line 6)700,085 753,966 53,881
9 221-2 Bonds 5,000 5,000
10 223 Advances from Associated Companies
11 224 Other Long-Term Debt 360,805 0 (360,805)
12 231 Accounts Payable 4,334 16,080 11,746
13 232 Notes Payable 125,657 381,144 255,487
14 233 Accounts Payable -Associated Companies
15 235 Customer Deposits (Refundable)
16 236.11 Accrued Other Taxes Payable 38,131 36,926 (1,205)
17 236.12 Accrued Income Taxes Payable 919 (12,343)(13,262)
18 236.2 Accrued Taxes -Non-Utility
19 237-40 Accrued Debt,Interest &Dividends Payable 0 125 125
20 241 Misc.Current &Accrued Liabilities
21 251 Unamortized Debt Premium
22 252 Advances for Construction 361,192 347,120 (14,072)
23 253 Other Deferred Liabilities
24 255.1 Accumulated investment Tax Credits -Utility
25 255.2 Accum.Investment Tax Credits -Non-Utility
26 261-5 Operating Resentes
27 271 Contributions in Aid of Construction 146,864 146,864
28 272 Accum.Amort.of Contrib.in Aid of Const.**(76,275)(80,761)(4,486)
29 281-3 Accumulated Deferred Income Taxes
30 Total Liabilities (Add lines 9 -29)961,627 840,155 (121,472)
31 TOTAL LIAB &CAPITAL (Add lines 8 &30)$1,661,712 $1,594,121 $(67,591)
**Only if Commission Approved
See Accountant's Report
Page 8 Revised Nov.97
NAME:Capitol Water Corporation
STATEMENT OF RETAINED EARNINGS
For the Year Ended:December 31,2001
1 Retained Earnings Balance @ Beginning of Year $660,885
2 Amount Added from Current Year income (From Pg 4,Line 32)58,047
3 Other Credits to Account
4 Dividends Paid or Appropriated
5 Other Distributions of Retained Earnings -Country Club Dues (4,166)
6 Retained Earnings Balance @ End of Year $714,766
CAPITAL STOCK DETAIL
No.Shares No.Shares Dividends
7 Description (Class,Par Value etc.)Authorized Outstanding Paid
Common Stock 250 100 None
DETAIL OF LONG-TERM DEBT
Interest Year-end Interest Interest
8 Description Rate Balance Paid Accrued
Advances for Construction N/A $347,120 None None
Debentures 10%5,000 $500 None
Note -Contract Center 10.50%0 914 None
Note -R.Price 9.00%55,232 None None
Note -Bayhill 7.87%28,571 2,356 None
Note -Schwartz 10.50%24,771 3,409 None
Note -B of A Surcharge 9.00%174,072 18,415 None
Note -B of A 7.25%98,500 789 None
Notes -Automobiles Various O 8,973 None
See Accountant's Report
Page 9 Revised Nov.97
NAME:Capitol Water Corporation
SYSTEM ENGINEERING DATA
For the Year Ended:December 31,2001
1 Provide an updated system map if significant changes have been made to the system during the year.
2 Water Supply:Type of Water
Treatment:Supply
Rated (None,Chlorine Annual Source
Capacity Fluoride Production (Well,Spring,
Pump Designation or location (gPM)Filter etc.)(000's Gal.)Surface Wtr)
Well #1 350 None Well
Well #2 (Inoperative)450 None Well
Well #3 800 None Well
Well #4 2,000 None Well
Well #5 (Abandoned per DEQ order)250 None Well
Well #6 1500 None Well
Well #7 1500 None Well
3 System Storage:
Total Usable Type of
Capacity Capacity Reservoir Construction
000's 000's (Elevated,Pres-(Wood,Steel
Storage Designation or Location Gal.Gal.urized,Boosted)Concrete)
Well #1 1,500 Pressurized Steel
Well #2 (Inoperative)
Well #3 3,000 Pressurized Steel
Well #4
Well #5 (Abandoned per DEQ order)
Well #6
Well #7
(Duplicate form and attach if necessary.Asterisk facilities added this year.)
See Accountant's Report
Page 10 Revised Nov.97
NAME:Capitol Water Corporation
SYSTEM ENGINEERING DATA
(continued)
For the Year Ended:December 31,2001
4 Pump information for ALL system pumps,including wells and boosters.
Rated Discharge Energy
Designation or Location Horse Capacity Pressure Used
&Type of Pump**Power (gpm)(psi)This Year
Well #1 30 350 70
Well #2 (Inoperative)25 450 50
Well #3 100 800 50
Well #4 200 2000 60
Well #5 (Abandoned per DEQ order)
Well #6 150 1500 70
Well #7 150 1500 75
**Submit pump curves unless previously provided or unavailable.Asterisk facilities added this year.
Attach additional sheets if inadequate space is available on this page.
5 If Wells are metered:
What was the total amount pumped this year?Unknown
What was the total amount pumped during peak month?Unknown
What was the total amount pumped on the peak day?4,041,400
6 If customers are metered,what was the total amount sold in peak month?N/A
7 Was your system designed to supply fire flows?Yes
If Yes What is current system rating?Included with all city rating
8 How many times were meters read this year?Every Day
During which Months?April through October
9 How many additional customers could be served with no system improvements
except a service line and meter?Unknown
How many of those potential additions are vacant lots?Unknown
10 Are backbone plant additions anticipated during the coming year?Yes
If Yes,attach an explanation of projects and anticipated costs!
11 in what year do you anticipate that the system capacity (supply,storage or distribution)
will have to be expanded?2002
See Accountant's Report
Page 11 Revised Nov.97
NAME:Capitol Water Corporation
SYSTEM ENGINEERING DATA
(continued)
For the Year Ended:December 31,2001
FEET OF MAINS
In Use Installed Abandoned in Use
1 Pipe Beginning During During End of
Size Of Year Year Year Year
10"600 600
2"7,766 7,766
4"23,740 23,740
6"75,794 100 75,894
8"38,895 480 39,375
12"2,060 2,060
3/4"58,793 300 59,093
1"3,061 3,061
1 1/2"260 260
CUSTOMER STATISTICS
Number of Customers Thousands of Gallons Sold
This Last This Last
Year Year Year Year
2 Metered:
2A Residential
2B Commercial 199 199
2C Industrial
Other
3 Flat Rate:
3A Residential 2,272 2,392
3B Commercial
3C Industrial
Other (Firelines)122
4 Private Fire Protection:
5 Public Fire Protection:164 163
6 Street Sprinkling
7 Municipal,Other:
8 Other Water Utilities:
TOTALS (Add lines 2 through 8)2,757 2,754
See Accountant's Report
Page 12 Revised Nov.97
CERTIFICATE
State of Idaho
County of Ada )
WE,the undersigned H.Robert Price
and Bonnie Price
of the Capital Water Corporation
utility,on our oath do severally say that the foregoing report has been prepared under our direction,
from the original books,papers and records of said utility;that we have carefully examined same,and
declare the same to be a correct statement of the business and affairs of said utility for the period
covered by the report in respect to each and every matter and thing therein set forth,to the best of our
knowledge,information and belief.
(Chief Officer)
(Officer in Charge of Accounts)
S bscribed a orn to BaeforeMeþâ
y',20 *·,
OTARY PUBLIC *,c ,g
My Commission Expires //~*.,
Page 13 Revised Nov.97
Capitol Water Corporation
Additional Explanations
PUC Report,December 31,2001
Company Information
19.DEQ has issued an order to abandon well #5.During 2002,we will redrill well
20.DEQ has recommended that we redrill well #5.
System Engineering Data
10.The anticipated costs of backbone plant additions are:
Redrill well #5 -$346,000
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b
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IP
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An
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of
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t
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sc
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d
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by
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or
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al
s
o
be
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n
in
c
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d
.
Th
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mo
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t
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l
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min
i
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m
ch
a
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fo
r
se
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c
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un
d
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th
i
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a
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R
V
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If
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ha
v
e
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y
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e
s
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ple
a
s
e
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t
a
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t
:
Se
r
v
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c
e
ca
n
n
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t
be
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on
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El
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g
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l
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y
.
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v
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c
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If
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u
ha
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r
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e
r
qu
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s
t
i
o
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s
on
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u
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l
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l
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te
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m
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p
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to
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s
c
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s
s
th
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s
pr
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c
e
s
s
,
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p
by
Or
st
e
p
,
wi
t
h
yo
u
r
Ca
p
i
t
o
l
Wa
t
e
r
bi
l
l
s
mo
n
t
h
l
y
,
8:
0
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m
.
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d
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0
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m
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-
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on
e
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ad
v
a
n
c
e
fo
r
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s
i
d
e
n
t
i
a
l
cu
s
t
o
m
e
r
s
.
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t
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r
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d
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s
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o
m
e
r
s
ar
e
bi
l
l
e
d
Th
e
em
p
l
o
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e
e
se
n
t
to
th
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pr
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m
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s
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to
mo
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t
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l
y
,
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e
mo
n
t
h
in
ar
r
e
a
r
s
.
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l
bi
l
l
i
n
g
s
ar
e
IP
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te
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n
a
t
e
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e
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l
l
id
e
n
t
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f
y
hi
m
s
e
l
f
/
h
e
r
s
e
l
f
ma
i
l
e
d
th
e
fi
r
s
t
of
ea
c
h
mo
n
t
h
.
47
2
W.
Wa
s
h
i
n
g
t
o
n
St
to
yo
u
an
d
st
a
t
e
th
e
pu
r
p
o
s
e
of
th
e
vi
s
i
t
.
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O
.
Bo
x
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s
em
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l
o
y
e
e
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t
h
o
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e
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to
ac
c
e
p
t
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s
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ID
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t
in
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l
.
(2
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)
33
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DE
P
O
S
I
T
S
/
P
A
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M
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N
T
GU
A
R
A
N
T
E
E
S
an
y
of
th
e
fo
l
l
o
w
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n
g
re
a
s
o
n
s
:
On
l
y
a
tw
e
n
t
y
-
f
o
u
r
(2
4
)
no
t
i
c
e
is
re
q
u
i
r
e
d
if
:
1.
A
si
t
u
a
t
i
o
n
ex
i
s
t
s
th
a
t
is
im
m
e
d
i
a
t
e
l
y
Th
e
IP
U
C
se
r
v
i
c
e
ru
l
e
s
al
l
o
w
Ut
i
l
i
t
i
e
s
to
as
k
fo
r
da
n
g
e
r
o
u
s
to
li
f
e
,
ph
y
s
i
c
a
l
sa
f
e
t
y
or
4.
Yo
u
do
no
t
ma
k
e
an
in
i
t
i
a
l
pa
y
m
e
n
t
de
p
o
s
i
t
s
or
pa
y
m
e
n
t
gu
a
r
a
n
t
e
e
s
un
d
e
r
sp
e
c
i
f
i
c
co
n
d
i
t
i
o
n
s
.
At
th
i
s
ti
m
e
,
Ca
p
i
t
o
l
Wa
t
e
r
pr
o
p
e
r
t
y
;
ac
c
o
r
d
i
n
g
to
a
pa
y
m
e
n
t
ar
r
a
n
g
e
m
e
n
t
or
Co
r
p
o
r
a
t
i
o
n
do
e
s
no
t
re
q
u
i
r
e
de
p
o
s
i
t
s
or
2.
To
pr
e
v
e
n
t
a
vi
o
l
a
t
i
o
n
of
fe
d
e
r
a
l
,
th
e
in
i
t
i
a
l
pa
y
m
e
n
t
is
ma
d
e
wi
t
h
a
ch
e
c
k
pa
y
m
e
n
t
gu
a
r
a
n
t
e
e
s
.
st
a
t
e
or
lo
c
a
l
sa
f
e
t
y
or
he
a
l
t
h
co
d
e
s
;
no
t
ho
n
o
r
e
d
by
th
e
ba
n
k
.
3.
Se
r
v
i
c
e
is
ob
t
a
i
n
e
d
,
di
v
e
r
t
e
d
or
us
e
d
wi
t
h
o
u
t
th
e
au
t
h
o
r
i
z
a
t
i
o
n
of
Ca
p
i
t
o
l
PA
Y
M
E
N
T
AR
R
A
N
G
E
M
E
N
T
S
AN
D
RU
L
E
S
FO
R
TE
R
M
I
N
A
T
I
O
N
OF
SE
R
V
I
C
E
Wa
t
e
r
Co
r
p
o
r
a
t
i
o
n
SP
E
C
I
A
L
CI
R
C
U
M
S
T
A
N
C
E
S
4.
Ca
p
i
t
o
l
Wa
t
e
r
Co
r
p
o
r
a
t
i
o
n
ha
s
TE
R
M
I
N
A
T
I
O
N
WI
T
H
PR
I
O
R
NO
T
I
C
E
di
l
i
g
e
n
t
l
y
at
t
e
m
p
t
e
d
to
no
t
i
f
y
yo
u
of
If
y
o
u
ca
n
n
o
t
pa
y
yo
u
r
bi
l
l
i
n
g
in
fu
l
l
or
yo
u
te
r
m
i
n
a
t
i
o
n
an
d
ha
s
be
e
n
un
a
b
l
e
to
re
c
e
i
v
e
a
no
t
i
c
e
of
te
r
m
i
n
a
t
i
o
n
,
pl
e
a
s
e
ca
l
l
Wi
t
h
pr
o
p
e
r
cu
s
t
o
m
e
r
no
t
i
f
i
c
a
t
i
o
n
Ca
p
i
t
o
l
Wa
t
e
r
co
n
t
a
c
t
yo
u
;
ou
r
of
f
i
c
e
.
Pa
y
m
e
n
t
ar
r
a
n
g
e
m
e
n
t
s
ca
n
be
Co
r
p
o
r
a
t
i
o
n
ma
y
de
n
y
or
te
r
m
i
n
a
t
e
wa
t
e
r
se
r
v
i
c
e
.
5.
If
or
d
e
r
e
d
by
an
y
co
u
r
t
,
th
e
ma
d
e
to
av
o
i
d
te
r
m
i
n
a
t
i
o
n
of
se
r
v
i
c
e
.
fo
r
on
e
of
th
e
fo
l
l
o
w
m
g
re
a
s
o
n
s
:
Co
m
m
i
s
s
i
o
n
,
or
an
y
ot
h
e
r
du
l
y
1.
No
n
p
a
y
m
e
n
t
of
a
pa
s
t
du
e
bi
l
l
i
n
g
or
pa
y
m
e
n
t
of
a
pa
s
t
du
e
bi
l
l
i
n
g
wi
t
h
au
t
h
o
r
i
z
e
d
pu
b
l
i
c
au
t
h
o
r
i
t
y
.
If
yo
u
ca
n
n
o
t
pa
y
yo
u
r
bi
l
l
i
n
g
an
d
a
me
m
b
e
r
an
y
ch
e
c
k
no
t
ho
n
o
r
e
d
by
th
e
ba
n
k
.
;
of
yo
u
r
ho
u
s
e
h
o
l
d
is
se
r
i
o
u
s
l
y
il
l
or
th
e
r
e
2.
Fa
i
l
u
r
e
to
ab
i
d
e
by
th
e
te
r
m
s
of
a
NO
T
I
F
I
C
A
T
I
O
N
is
a
me
d
i
c
a
l
em
e
r
g
e
n
c
y
,
Ca
p
i
t
o
l
Wa
t
e
r
pa
y
m
e
n
t
ar
r
a
n
g
e
m
e
n
t
;
Co
r
p
o
r
a
t
i
o
n
wi
l
l
po
s
t
p
o
n
e
th
e
te
r
m
i
n
a
t
i
o
n
3.
Ob
t
a
i
n
i
n
g
se
r
v
i
c
e
by
mi
s
-
r
e
p
r
e
s
e
n
t
a
t
i
o
n
1.
A
bi
l
l
i
n
g
ma
y
be
co
n
s
i
d
e
r
e
d
pa
s
t
du
e
of
se
r
v
i
c
e
fo
r
th
i
r
t
y
(3
0
)
da
y
s
.
A
wr
i
t
t
e
n
of
id
e
n
t
i
t
y
;
th
i
r
t
y
(3
0
)
da
y
s
af
t
e
r
th
e
bi
l
l
i
n
g
ce
r
t
i
f
i
c
a
t
e
is
re
q
u
i
r
e
d
fr
o
m
a
li
c
e
n
s
e
d
4.
De
n
y
i
n
g
or
wi
l
l
f
u
l
l
y
pr
e
v
e
n
t
i
n
g
ac
c
e
s
s
da
t
e
.
A
wr
i
t
t
e
n
no
t
i
c
e
of
te
r
m
i
n
a
t
i
o
n
ph
y
s
i
c
i
a
n
or
pu
b
l
i
c
he
a
l
t
h
of
f
i
c
i
a
l
st
a
t
i
n
g
th
e
to
th
e
wa
t
e
r
me
t
e
r
or
sh
u
t
of
f
va
l
v
e
;
mu
s
t
be
ma
i
l
e
d
at
le
a
s
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STANTON,JACKSON &CO.,PLLC
ACCOUNTING &CONSULTING
415 South 4'"Sked
Post Office Box 1693
Boise,Idaho 83701
May 13,2002
Idaho Public Utilities Commission
Attn:Bob Smith
P.O.Box 83720
Boise,ID 83720-0074
RE:Capitol Water Corporation's 2001 Surcharge Income Effect on Taxes
Dear Bob,
Per your request,we have calculated the surcharge income affect on Capitol
Water Corporation's 2001 tax retum.As per the attached schedule,you will notice that
by taking the surcharge income and subtracting the phosphate and other related expenses
for the year,we have calculated surcharge net income of $49,282.55.The total tax effect
on this income is $7,903.This is due to the net loss created by removing surcharge net
income from taxable income.If you have any additional information requests,feel free to
contact Jason Wood at [phone].
Sincerely,
Richard O.Stanton,CPA
Stanton,Jackson &Co.,PLLC
Phone [phone] ·Fax [phone] Email [e-mail]
CapitolWater Corporation
Surcharges -Effect of Tax Returns
For the Year Ending 12/31/2001
Description Amount
Surcharge Income $110,438.69
Expenses
Interest -B of A Surcharge Note 18,415.00
Pumping Purchase Power 14,099.76
Phosphates 28,641.38
Total Expenses 61,156.14
Net Surcharge Income $49,282.55
Effect on federal tax
Taxes as filed $6,313.00
Taxes without surcharges 0.00
Federal Taxes S 6,313.00
Effect on state tax
Taxes as filed $1,610.00
Taxes without surcharges 20.00
State Taxes $1,590.00
Total Tax Effect on Income $7,903.00