20210608J Cary Supplemental Direct with Exhibits.pdf

Michael C. Creamer (ISB No. 4030)
Preston N. Carter (ISB No. 8462)
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
15689220_1.docx [30-174]

Attorneys for SUEZ Water Idaho Inc.

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE JOINT
APPLICATION OF SUEZ WATER IDAHO
AND EAGLE WATER COMPANY FOR
THE ACQUISITION OF EAGLE WATER
COMPANY

Case No. SUZ-W-18-02
EAG-W-18-01

SUPPLEMENTAL DIRECT TESTIMONY OF JARMILA CARY

ON BEHALF OF SUEZ WATER IDAHO INC.

June 8, 2021

1
CARY, SUPPLEMENTAL DI
SUEZ Water Idaho Inc.

BACKGROUND 1
Q. Please state your name and title. 2
A. Jarmila Cary, Director of Finance and Customer Service for SUEZ in Idaho 3
(“SUEZ” or “Company”) 4
Q. Are you the same Jarmila Cary who filed direct testimony in this proceeding 5
on November 15, 2018? 6
A. Yes, I am. 7
Q. What is the purpose of your supplemental testimony? 8
A. My supplemental testimony describes the financial revisions to the Company’s 9
filing as a result of the Settlement Agreement reached between Eagle Water 10
Company, H2O Eagle Acquisitions, LLC, SUEZ and the City of Eagle. The 11
agreement includes terms, as described in Witness Thompson’s supplemental 12
testimony, including a revised acquisition purchase price for the assets of the 13
Eagle Water Company (“Eagle Water”) water system, and a five-year phased-in 14
tariff increase for Eagle Water customers, if the proposed asset acquisition is 15
approved. 16
Q. Have you prepared updated Exhibits that show your analysis conclusions? 17
A. Yes. I am sponsoring Exhibit 1 Revised consisting of updated Schedules 1 18
through 3. The revisions from the original filing in 2018 for these exhibits reflect 19
the following changes: going from a three-year to a five-year phase-in; updated 20
capital project investments timing and amounts per Witness Cooper’s 21
supplemental testimony; and reflecting SUEZ’ most current approved tariff rates, 22

2
CARY, SUPPLEMENTAL DI
SUEZ Water Idaho Inc.

including a May 1, 2022 tariff rate change per Stipulation and Settlement for the 1
Company’s General Rate Case SUZ-W-20-02, Order 35030. 2
Schedule 1a Revised shows a revised five-year capital investment that would 3
benefit Eagle Water customers based on Witness Cooper’s supplemental 4
testimony. This schedule includes Eagle Water’s projected operating costs 5
(including recommended maintenance), and the resulting revenue deficiency. For 6
the sake of simplicity and comparability to the original 2018 filing, operating cost 7
assumptions remain generally unchanged as filed, with the exception of 8
deprecation calculated on the capital investments. 9
The financial analysis includes no inflation projections or subsequent operating 10
cost escalations in the ensuing years, utilizing Eagle Water’s 2017 reported 11
operating costs of $625,102 as the starting point, and projecting recommended 12
maintenance costs discussed in my 2018 testimony. For comparison the amount 13
reported by Eagle Water for their year ended 2020 operating costs is $662,509 per 14
their annual report to the Commission. The resulting revenue deficiency changed 15
from the original $1,922,839 as filed in 2018 to $2,087,657 based on the updated 16
capital investment costs calculated by Ms. Cooper. 17
Schedule 1b Revised calculates the percentage rate increase that the revenue 18
requirement deficiency would support for Eagle Water over its existing rates. The 19
original filing in 2018 for the revenue deficiency supported a 256% increase over 20
existing Eagle rates, and the updated schedule with revised capital investments 21
support a 268% increase. 22

3
CARY, SUPPLEMENTAL DI
SUEZ Water Idaho Inc.

Schedule 2 Revised is an analysis of the expected rate impact to Eagle Water 1
customers with a five-year rate phase-in starting with 50% of existing SUEZ 2
rates, then transitioning to 62.50% of SUEZ’ May 1, 2022 phased-in approved 3
rates, until rates are 100% of SUEZ approved tariff rates in year five. The analysis 4
uses an average bill calculation which approximates Eagle Water’s 2017 reported 5
revenues of $760,105 with year-end average customers of 3,834 and a reported 6
470,737,003 thousand gallons sold, which appears to be an error. The 2020 year-7
end revenues reported on Eagle Water’s annual report to the Commission total 8
$683,036, with an average of 4,403 customers using year end reported numbers, 9
and 771,879 thousand gallons of water sold. 10
Schedule 3 Revised summarizes the proposed phased-in tariff rates and 11
incorporates SUEZ’ most recent approved rates and the impact of the May 1, 12
2022 phase-in rate change. 13
The average monthly bill components remain unchanged from the 2018 Exhibit 14
for comparability with the exception of updated customer numbers. A Residential 15
customer’s average monthly bill using a ¾” meter and 16 hundred cubic feet 16
(CCF) of consumption produces a bill of $12.35 at current Eagle Water Company 17
rates. At 50% of existing SUEZ rates, that amount would be $19.48. In year two 18
after SUEZ’ approved May 1, 2022 rate change, at 62.5% of SUEZ rates, the 19
Residential customer’s average monthly bill would be $25.55, at year three at 20
75% the average bill would be $30.66, at year four at 87.5% the average bill 21
would be $35.77, and in year five at 100%, the average monthly bill would be 22
$40.88. 23

4
CARY, SUPPLEMENTAL DI
SUEZ Water Idaho Inc.

A Commercial customer’s average monthly bill using a 1 and ½” meter and 75 1
hundred cubic feet (CCF) of consumption produces a bill of $38.96 at current 2
Eagle Water Company rates. In year one under SUEZ’ approved May 1, 2022 3
rate change, with a phase in of 50% of SUEZ rates that bill would be $79.19. In 4
year two, at 62.5% of SUEZ rates that bill would be $103.87. In year three at 75% 5
of SUEZ rates that bill would be $124.64. In year four at 87.5% that bill would 6
be $145.42, and at 100% in year five that bill would be $166.19. If actual 7
consumption is higher or lower than the average calculated, the overall bill would 8
also be lower or higher. 9
Q. Please discuss your financial analysis supporting the updated purchase price. 10
A. As derived from the most recent Eagle Water annual report to the Commission, 11
Eagle Water’s calculated level of rate base as of December 31, 2020 was 12
($1,719,415). This is a reduction in rate base of $510,623 from the 2017 13
calculated rate base level of ($1,208,792). The 2020 rate base figure is 14
represented by the Eagle Water Plant In Service of $3,296,681, less Accumulated 15
Depreciation & Amortization of $1,716,405 less $3,411,319 booked as 16
Contributions in Aid of Construction (“CIAC”), plus a working capital amount of 17
$82,814 representing one-eighth of $662,509 Operating and Maintenance 18
expenses (including regulatory commission fees). 19
The Company is aware from discussions with Commission Staff and its own 20
review of past Eagle Water filings with this Commission, that Eagle Water books 21
and records may not accurately reflect its current rate base and capitalized assets 22
due to prior accounting inconsistencies. The Company’s assumption for purposes 23

5
CARY, SUPPLEMENTAL DI
SUEZ Water Idaho Inc.

of analysis discussed in my testimony is that the Eagle Water rate base would be 1
set to zero. 2
SUEZ is asking the Commission to recognize the full $10.5M updated purchase 3
price plus reasonable and customary acquisition costs as an acquisition adjustment 4
for rate making purposes. This treatment will allow SUEZ to recover the full 5
purchase price, transaction and closing costs in rates. Furthermore, this treatment 6
will allow SUEZ to make the capital improvements necessary to meet existing 7
regulatory requirements and modernize the Eagle Water system, providing 8
customers with 24-hour emergency response by trained qualified professionals, 9
conveniences such as electronic billing and notifications, access to conservation 10
resources, website monitoring with hourly consumption data for advanced AMI 11
installed meters, and variety of payment options including electronic payments. 12
The asset purchase agreement makes SUEZ’ obligation to close the purchase 13
contingent upon, among other things, a favorable rate treatment of the purchase 14
price. The $10.5M purchase price represents an approximate investment per 15
customer of $2,534 based on a March 25, 2021 updated customer list of 4,144 16
active Eagle Water customers. 17
For comparison, SUEZ’ investment per customer is approximately $3,720. This 18
calculation is based on the April 2021 balance of Gross Plant in Service of 19
$525,739,045 less Advances in Aid of Construction of $3,944,164 and less 20
Contributions in Aid of Construction of $15,962,325 for a plant investment of 21
$370,832,557. The $370,832,557 plant investment divided by the April 2021 22
number of SUEZ Active Service Agreements of 99,675, produces an estimated 23

6
CARY, SUPPLEMENTAL DI
SUEZ Water Idaho Inc.

investment of $3,720 per SUEZ customer. Additional justification for the 1
purchase price is discussed in Mr. Thompson’s supplemental testimony and is 2
based on an estimated capital cost investment avoidance of $11.2M as described 3
in Ms. Cooper’s supplemental testimony. 4
Q. Please discuss the update to the anticipated acquisition closing costs. 5
A. The Company is requesting that all of its acquisition costs through closing of the 6
purchase be capitalized and amortized as part of the requested acquisition 7
adjustment. These costs would include legal fees, costs for obtaining surveys and 8
extended coverage title insurance for the acquired real property assets, preparation 9
and prosecution of the Joint Application and SUEZ’ share of closing/escrow 10
costs. SUEZ’ acquisition costs as of April 2021 total approximately $565k 11
consisting predominantly of legal fees, ALTA (American Land Title Association) 12
surveys, notices and communication costs, and an estimated $6,000 for extended 13
coverage title insurance for the acquired real property assets. The Commission 14
has previously allowed recovery of such prudent acquisition costs in prior case 15
filings. 16
Q. Please discuss the updated projected capital investment that will directly 17
benefit the Eagle Water system customers. 18
A. Ms. Cooper’s supplemental testimony includes the projected capital investment 19
that would directly benefit Eagle Water system customers, which totals $14.626 20
million. These investments are included in Exhibit 1, Schedule 1a at line 43 at 21
column F. 22

7
CARY, SUPPLEMENTAL DI
SUEZ Water Idaho Inc.

Q. Based on the projected capital investment and Eagle Water operating costs, 1
what would Eagle Water’s revenue requirement and the impact on Eagle 2
Water Customer tariff rates be assuming those investments were made and 3
costs were incurred by Eagle Water? 4
A. Exhibit 1, Schedule 1a Revised details my analysis of the anticipated financial 5
impact over the five years with anticipated capital investments, normalized 6
depreciation expense, and operating costs Eagle Water would be expected to incur. 7
The result for Eagle Water is a projected revenue deficiency of $2,087,657 which 8
is $164,818 higher than the $1,922,839 included in the 2018 testimony & original 9
exhibits, with all other factors remaining unchanged from original filing exhibits. 10
As summarized in Exhibit 1, Schedule 1b Revised, that Revenue deficiency would 11
support a 268% rate increase for Eagle Water Company over its existing rates. The 12
actual impact of an increase in rates on a customer bill would be highly dependent 13
on the actual quantity of water used and the meter size. Applying that increase to a 14
calculated average Eagle Water customer and using Eagle Water’s current tariff 15
structure, the average customer bill would result in a projected average monthly 16
increase of $34.27 for Residential customers, going from a $12.35 average monthly 17
bill at existing rates to a $46.62 monthly bill. The impact to Commercial customers 18
under Eagle Water Company tariff rates would be an estimated average monthly 19
increase of $108.08, going from a $38.96 average monthly bill at existing rates to 20
a $147.04 monthly bill. 21
Q. Please explain how the average monthly bill was calculated? 22

8
CARY, SUPPLEMENTAL DI
SUEZ Water Idaho Inc.

A. The calculations for the average monthly bill remain unchanged from the 2018 1
testimony and exhibits. The average Residential monthly bill is calculated using a 2
3/4” meter fixed charge and a 30% winter / 70% summer consumption pattern based 3
on Eagle Water’s 2017 water sold data with an estimated 16 ccf (hundred cubic 4
feet) of monthly water usage. 5
The average Commercial customer monthly bill is calculated using a 1-1/2” meter 6
fixed charge with a 15% winter / 85% summer consumption pattern based on Eagle 7
Water’s 2017 water sold data with an estimated 75 ccf (hundred cubic feet) of 8
monthly water usage. 9
Q. What would the revenue requirement and the impact on Eagle Water 10
customer tariff rates be with the proposed SUEZ acquisition and five-year rate 11
phase in? 12
A. SUEZ projects that Eagle Water would experience an increased revenue 13
requirement of $2,087,657 requiring a related rate increase of approximately 268% 14
if it were to continue operating the system and make the recommended system 15
upgrades. Though it is expected that Eagle Water operating expenses may grow as 16
commodity prices, wages and other costs may go up from year to year, for the sake 17
of simplicity the analysis does not factor in any consumer price index annual cost 18
increases. 19
If the Eagle Water assets are acquired, upgraded and operated by SUEZ consistent 20
with the plans described in Ms. Cooper’s testimony, a transition to full SUEZ rates 21
as proposed in the Application would produce estimated revenues of $2,028,636 22
using an updated March 25, 2021 active customer count of 4,144 provided by Eagle 23

9
CARY, SUPPLEMENTAL DI
SUEZ Water Idaho Inc.

Water Company showing 3,629 Residential and 515 Commercial customers. This 1
would be an approximate 261% increase over Eagle Water’s existing rates as shown 2
in Exhibit 1, Schedule 2 Revised at row 10-12, column AL. 3
With a five-year rate phase-in and using the same average customer bill 4
determinants as above, SUEZ projects that Eagle Water Residential customers 5
would see an approximate monthly increase of $7.13 in their billings in year one, 6
in which their rate would be at 50% of SUEZ’ existing rates. In year one, the 7
average Eagle Water Residential customer would see their bill increase from a 8
current monthly cost of $12.35 to $19.48, a 58% increase. In year two, they would 9
see an approximate monthly increase of $6.07 or 31% increase for an average 10
monthly bill of $25.55 based on 62.5% of SUEZ’ May 1, 2022 phased in rates. In 11
year three through five, they would see an approximate monthly increase of $5.11, 12
with an average monthly bill of $30.66 with a 20% increase, then $35.77 with a 13
17% increase and finally $40.88 for a 14% increase in year five at 100% of SUEZ’ 14
existing rates. 15
Eagle Water Commercial customers would realize an approximate monthly 16
increase of $40.23 in year one, going from Eagle Water’s existing rates and a 17
current average monthly bill of $38.96 to $79.19 at 50% of SUEZ’ existing rates, 18
an increase of 103%. In year two, they would see an approximate monthly increase 19
of $24.68 for an average monthly bill of $103.87 based on 62.50% of SUEZ’ May 20
1, 2022 phased in rates, an increase of 31%. In year three through five, they would 21
see an approximate monthly increase of $20.77, with an average monthly bill of 22
$124.64 for a 20% increase, then $145.42 after a 17% increase, and finally $166.19 23

10
CARY, SUPPLEMENTAL DI
SUEZ Water Idaho Inc.

based on 100% of SUEZ’ existing rates, a 14% increase. These proposed rates are 1
summarized in Exhibit 1, Schedule 3 Revised and reflected in the table below. 2
3
4
5
The overall increase over the full five-year phase-in period to SUEZ’ rates using 6
the average bill calculations would result in an approximate increase of 231% for 7
Residential customers and an increase of 327% for Commercial customers, both 8
are dependent on level of consumption and meter size. 9
Additionally, as described in Mr. Thompson’s November 2018 Direct testimony on 10
page 9 and my February 2019 response to Second Production Request of the 11

11
CARY, SUPPLEMENTAL DI
SUEZ Water Idaho Inc.

Commission Staff to SUEZ Water Idaho Inc. No. 46, the Company is proposing 1
that new customers moving into the former Eagle Water Company service territory 2
after acquisition, would not be included in the phase-in. Post-closing any newly-3
established customer accounts would commence service at regular SUEZ rates. 4
This is consistent with the Commission’s prior order concerning this issue. 5
Commission Order 27798 in UWI-W-98-2, regarding United Water Idaho Inc.’s 6
acquisition of South Water Company stated on page 10, “We find that new 7
customers in the South County area, whether new by the result of new construction 8
or sale/purchase, are not subject to rate shock and cannot be perceived as having 9
any reasonable expectation of lower South County rates.” 10
Q. What would the impact be to Eagle Water customer rates should SUEZ’ tariff 11
rates change during the five year phase-in period? 12
A. Should a Commission approved rate change take place for SUEZ during the five 13
year Eagle Water rate phase-in period, Eagle Water customer rates would be phased 14
in at the corresponding percentage of SUEZ’ new rates rather than existing rates 15
reflected in Exhibit 1 Schedule 2 Revised. Once Eagle Water customers are at 100% 16
of SUEZ tariff rates, they would also be subject to any future tariff changes 17
approved by the Commission. 18
Q. Does this conclude your testimony? 19
A. Yes it does. 20

Case No. SUZ –W-18-02
SUEZ WATER IDAHO INC.

Direct Testimony of Jarmila Cary

EXHIBIT 1
Schedules 1a, 1b, 2 and 3

(4 PAGES)

Exhibit No. 1 Revised Case No. SUZ-W-18-02
J. Cary, SUEZSchedule 1a Revised
IPUC Capital Capital Capital Capital Capital Annual Investment Investment Investment Investment InvestmentLineReportRevisedRequiredChangeRevisedRequiredChangeRevisedRequiredChangeRevisedRequiredChangeRevisedRequired Change RevisedNo.Description 2017 Adjust 2017 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 5 Year 5 Year 5
1 Operating Revenue 760,105 760,105 760,105 760,105 760,105 760,105 760,105
Operating Expenses:2 Labor 279,150 279,150 90,000 369,150 369,150 369,150 369,150 369,1503Purchased Water 0 0 0 0 0 0 04Power Purchased for Pumping 161,279 161,279 2,000 163,279 163,279 163,279 163,279 163,2795Chemicals0024,000 24,000 24,000 24,000 24,000 24,0006Materials & Supplies 65,905 65,905 17,750 83,655 83,655 83,655 83,655 83,6557Contract Services 41,067 41,067 25,000 66,067 66,067 66,067 66,067 66,0678Rentals- Property & Equipment 10,450 10,450 10,450 10,450 10,450 10,450 10,4509Transportation Expense 25,201 25,201 25,201 25,201 25,201 25,201 25,20110Insurance20,120 20,120 20,120 20,120 20,120 20,120 20,12011Advertising000000012Rate Case Expense (Amortization)1,879 1,879 1,879 1,879 1,879 1,879 1,87913Regulatory Comm. Exp. (Other except taxes)13,239 13,239 13,239 13,239 13,239 13,239 13,239 14 Bad Debt Expense 0 0 - - - - - 15 Miscellaneous 6,812 6,812 6,812 6,812 6,812 6,812 6,81216Amortization Remediation Costs 0 0 0 0 0 0 017Other O&M Expenses 0 0 0 0 0 0 018Operating & Maintenance Expense 625,102 0 625,102 0 158,750 783,852 0 0 783,852 0 0 783,852 0 0 783,852 0 0 783,852
19 Depreciation & Amortization Expense 65,276 65,276 59,580 153,531 129,180 282,711 39,810 322,521 110,220 432,741 99,990 532,73120Gross Receipts Tax 0 0 0 0 0 021Franchise Tax 6,047 6,047 6,047 6,047 6,047 6,047 6,04722Property, Payroll, Excise and Other Taxes 59,401 59,401 59,401 59,401 59,401 59,401 59,401
23 Total Operating Expenses Before Income Taxes 755,826 0 755,826 59,580 158,750 1,002,831 129,180 0 1,132,011 39,810 0 1,171,821 110,220 0 1,282,041 99,990 0 1,382,031
24 Operating Income Before Income Taxes 4,279 0 4,279 (242,726)(129,180)0 (371,906)(39,810)0 (411,716)(110,220)0 (521,936)(99,990)0 (621,926)25 State Income Taxes 227 227 (21,863)(41,655)(47,755)(64,642)(79,962)26 Federal Income Taxes 0 0 (61,708)(117,572)(134,788)(182,452)(225,693)27 Deferred Federal Income Taxes 0 0 0 0 0 0 0
28 Operating Income $4,052 $0 $4,052 $0 $0 ($159,155)($129,180)$0 ($212,679)($39,810)$0 ($229,174)($110,220)$0 ($274,842)($99,990)$0 ($316,271)
29 Interest Expense $587 $0 $0 $0 $0 $72,985 $156,631 $0 $229,616 $48,270 $0 $277,885 $133,642 $0 $411,527 $121,238 $0 $532,765
30 Utility Plant in Service 3,131,715 3,131,715 1,986,000 5,117,715 4,306,000 9,423,715 1,327,000 10,750,715 3,674,000 14,424,715 3,333,000 17,757,715 31 Accumulated Amortization (59,306)(59,306)(59,306)(59,306)(59,306)(59,306)(59,306)32 Accumulated Depreciation (1,204,144)(1,204,144)(59,580)(1,263,724)(129,180)(1,392,904)(39,810)(1,432,714)(110,220)(1,542,934)(99,990)(1,642,924)33 Net Plant 1,868,265 1,868,265 1,926,420 3,794,685 4,176,820 7,971,505 1,287,190 9,258,695 3,563,780 12,822,475 3,233,010 16,055,48534Contributions in Aid of Construction (3,155,195)(3,155,195)(3,155,195)(3,155,195)(3,155,195)(3,155,195)(3,155,195)35 Customer Advances for Construction 0 0 0 0 0 0 036Accumulated Deferred Income Taxes 0 0 0 0 0 0 037Materials and Supplies 0 0 0 0 0 0 038Prepaid Expenses 0 0 0 0 0 0 039Working Capital (1/8th O&M Expenses)78,138 78,138 97,982 97,982 97,982 97,982 97,98240Unamortized bond discount 0 0 0 0 0 0 041Rate Base Adj. - set Rate Base to -0-0 1,208,792 1,208,792 1,208,792 1,208,792 1,208,792 1,208,792 1,208,79242Other Rate Base Items 0 0 0 0 0 0 0
43 Rate Base ($1,208,792)$1,208,792 $0 $1,926,420 $0 $1,946,264 $4,176,820 $0 $6,123,084 $1,287,190 $0 $7,410,274 $3,563,780 $0 $10,974,054 $3,233,010 $0 $14,207,064
44 Rate of Return -0.34%0.00%0.00%-8.18%-3.09%-3.47%-3.09%-3.09%-2.50%-2.23%
45 Required Rate of Return 8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%
46 Required Net Operating Income ($102,747)$102,747 $0 $163,746 $0 $165,432 $355,030 $0 $520,462 $109,411 $0 $629,873 $302,921 $0 $932,795 $274,806 $0 $1,207,600
47 Operating Income Deficiency (106,799)$ 102,747$ (4,052)$ 163,746$ -$ 324,588$ 484,210$ -$ 733,141$ 149,221$ -$ 859,047$ 413,141$ -$ 1,207,636$ 374,796$ -$ 1,523,871$
48 Gross Revenue Conversion Factor 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970 1.369970
49 Revenue Deficiency (Overage)($146,312)$140,761 ($5,551)$224,327 $0 $444,675 $663,353 $0 $1,004,381 $204,428 $0 $1,176,868 $565,991 $0 $1,654,425 $513,459 $0 $2,087,657
50 Long Term Debt Ratio 50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%51 Common Equity Ratio 50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%52 Total Capital 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%
53 Long Term Debt Cost - Estimated 7.50%7.50%7.50%7.50%7.50%7.50%7.50%7.50%7.50%7.50%7.50%7.50%7.50%7.50%7.50%7.50%7.50%7.50%54 Common Equity Cost - Estimated 9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%
55 Long Term Debt Weighted Avg. Cost 3.75%3.75%3.75%3.75%3.75%3.75%3.75%3.75%3.75%3.75%3.75%3.75%3.75%3.75%3.75%3.75%3.75%3.75%56 Common Equity Weighted Avg. Cost 4.75%4.75%4.75%4.75%4.75%4.75%4.75%4.75%4.75%4.75%4.75%4.75%4.75%4.75%4.75%4.75%4.75%4.75%57 Total Capital - Weighter Avg. Cost 8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%
Gross Revenue Conversion Factor
59 Net Deficiency 100.0000%
60 Less IPUC Assessment Rate 0.2275%61 Less Uncollectible Accounts Expense 0.5000%62 Total 0.7275%
63 State Tax Rate 6.9250%
64 Effective State Tax Rate State Income Tax * Deficiency 6.8746%
65 Federal Income Tax Rate 21.0000%
66 Effective Federal Tax Rate Federal Income Tax * Deficiency 19.4036%
67 Net After Tax 72.9943%
68 Composite - IPUC Fees, Uncollectible, Income Taxes 27.0057%
69 Composite Residual 72.9943%
70 Net to Gross Multiplier 136.9970%
Exhibit No. 1 Revised
Case No. SUZ-W-18-02
J. Cary, SUEZ
Schedule 1a Revised
Average Residential Bill Average Commmercial Bill
12.350$ 38.955$ Existing Avg. Bill
33.920$ 106.991$ Increase
Increase over 2017 actual revenues using avg. calculated bill 274.65%46.270$ 145.946$ New Rates
12.350$ 38.955$ Existing Avg. Bill
Increase over existing Eagle Water tariff using avg. calculated bill 268.14%33.116$ 104.455$ Increase
Projected Impact to Average Eagle Water Customer (using existing Eagle Water tariff structure) for the Revenue Deficiency calculated in Exhibit 1 Schedule 1a and Average Customer Bill shown in Schedule
2
Exhibit No. 1 Revised Case No. SUZ-W-18-02J. Cary, SUEZSchedule 1a Revised
SUEZ Proposed Rate Phase In for Eagle Water
50%62.500%75.000%87.500%100.000%of 5/1/2021 rates of 5/1/2022 rates of 5/1/2022 rates of 5/1/2022 rates of 5/1/2022 rates100 cubic feet or CCFSummer Tariff Rate 0.4510$ 0.9627$ 1.2628$ 1.5153$ 1.7679$ 2.0204$ Winter Tariff Rate 0.4510$ 0.7604$ 0.9974$ 1.1969$ 1.3964$ 1.5959$ change over 2017 EWC actual revenue 267%Per 3CCF Per 1 CCF Rate for first 3 CCF (winter & summer)600CF or less 7.84$ 3.92$ 1.307$ 1.5959$ change over existing EWC rates per calculated avg. bill 261%Over 600 CF per 100 CF 0.4510$ Total Annual Impact (Residential & Commercial)559,008$ Total Annual Impact (Residential & Commercial)416,929$ Total Annual Impact (Residential & Commercial)350,899$ Total Annual Impact (Residential & Commercial)350,899$ Total Annual Impact (Residential & Commercial)350,899$ Grand Total 2,028,636$
Residential Customer 3/4" Meter 3CCF in Summer at Winter Rate Annual Increase 310,381$ Annual Increase 264,381$ Annual Increase 222,516$ Annual Increase 222,516$ Annual Increase 222,516$ Monthly Increase 7.13$ Monthly Increase 6.07$ Monthly Increase 5.11$ Monthly Increase 5.11$ Monthly Increase 5.11$ Winter/Summer Consumption 30%70%(Based on 2017 consumption by month avg.)
3/4" Meter - Monthly 7.84$ CCF allowed 6 Over 6CCFCustomers as of 3/25/2021 3,629
Monthly Consumption (CCF Fixed Winter Summer Total Calculated Fixed Winter Summer Total Rate Calculated Fixed Charge Winter Summer Total Rate Calculated Annual Total Winter Summer Total Rate Calculated Annual Fixed Charge Winter Summer Total Rate Calculated Annual Fixed Charge Winter Summer Total Rate Calculated Annual
6 7.84$ -$ -$ 7.84$ 5.47$ 1.37$ 3.62$ 10.46$ 33%7.18$ 1.80$ 4.75$ 13.72$ 31%8.61$ 2.15$ 5.70$ 16.46$ 20%10.05$ 2.51$ 6.64$ 19.20$ 17%11.48$ 2.87$ 7.59$ 21.95$ 14%10 7.84$ 0.54$ 1.26$ 9.64$ 5.47$ 2.28$ 6.31$ 14.07$ 46%7.18$ 2.99$ 8.28$ 18.45$ 31%8.61$ 3.59$ 9.94$ 22.14$ 20%10.05$ 4.19$ 11.59$ 25.83$ 17%11.48$ 4.79$ 13.25$ 29.52$ 14%16 7.84$ 1.35$ 3.16$ 12.35$ 537,818$ 5.47$ 3.65$ 10.36$ 19.48$ 58%848,199$ 7.18$ 4.79$ 13.59$ 25.55$ 31%1,112,579$ 8.61$ 5.75$ 16.30$ 30.66$ 20%1,335,095$ 10.05$ 6.70$ 19.02$ 35.77$ 17%1,557,611$ 11.48$ 7.66$ 21.74$ 40.88$ 14%1,780,127$ 230.99%20 7.84$ 1.89$ 4.42$ 14.15$ 5.47$ 4.56$ 13.05$ 23.09$ 63%7.18$ 5.98$ 17.12$ 30.28$ 31%8.61$ 7.18$ 20.55$ 36.34$ 20%10.05$ 8.38$ 23.97$ 42.39$ 17%11.48$ 9.58$ 27.39$ 48.45$ 14%30 7.84$ 3.25$ 7.58$ 18.66$ 5.47$ 6.84$ 19.79$ 32.11$ 72%7.18$ 8.98$ 25.96$ 42.11$ 31%8.61$ 10.77$ 31.15$ 50.54$ 20%10.05$ 12.57$ 36.34$ 58.96$ 17%11.48$ 14.36$ 41.54$ 67.38$ 14%40 7.84$ 4.60$ 10.73$ 23.17$ 5.47$ 9.12$ 26.53$ 41.13$ 77%7.18$ 11.97$ 34.80$ 53.94$ 31%8.61$ 14.36$ 41.76$ 64.73$ 20%10.05$ 16.76$ 48.72$ 75.52$ 17%11.48$ 19.15$ 55.68$ 86.31$ 14%50 7.84$ 5.95$ 13.89$ 27.68$ 5.47$ 11.41$ 33.27$ 50.15$ 81%7.18$ 14.96$ 43.64$ 65.78$ 31%8.61$ 17.95$ 52.37$ 78.93$ 20%10.05$ 20.95$ 61.09$ 92.09$ 17%11.48$ 23.94$ 69.82$ 105.24$ 14%60 7.84$ 7.31$ 17.05$ 32.19$ 5.47$ 13.69$ 40.01$ 59.17$ 84%7.18$ 17.95$ 52.48$ 77.61$ 31%8.61$ 21.54$ 62.97$ 93.13$ 20%10.05$ 25.14$ 73.47$ 108.65$ 17%11.48$ 28.73$ 83.97$ 124.17$ 14%70 7.84$ 8.66$ 20.20$ 36.70$ 5.47$ 15.97$ 46.75$ 68.19$ 86%7.18$ 20.95$ 61.32$ 89.44$ 31%8.61$ 25.14$ 73.58$ 107.33$ 20%10.05$ 29.32$ 85.84$ 125.21$ 17%11.48$ 33.51$ 98.11$ 143.10$ 14%80 7.84$ 10.01$ 23.36$ 41.21$ 5.47$ 18.25$ 53.49$ 77.21$ 87%7.18$ 23.94$ 70.16$ 101.27$ 31%8.61$ 28.73$ 84.19$ 121.52$ 20%10.05$ 33.51$ 98.22$ 141.78$ 17%11.48$ 38.30$ 112.25$ 162.03$ 14%90 7.84$ 11.37$ 26.52$ 45.72$ 5.47$ 20.53$ 60.23$ 86.23$ 89%7.18$ 26.93$ 79.00$ 113.10$ 31%8.61$ 32.32$ 94.80$ 135.72$ 20%10.05$ 37.70$ 110.59$ 158.34$ 17%11.48$ 43.09$ 126.39$ 180.96$ 14%100 7.84$ 12.72$ 29.68$ 50.23$ 5.47$ 22.81$ 66.96$ 95.25$ 90%7.18$ 29.92$ 87.84$ 124.93$ 31%8.61$ 35.91$ 105.40$ 149.92$ 20%10.05$ 41.89$ 122.97$ 174.91$ 17%11.48$ 47.88$ 140.54$ 199.89$ 14%500 7.84$ 66.84$ 155.96$ 230.63$ 5.47$ 114.06$ 336.52$ 456.05$ 98%7.18$ 149.62$ 441.41$ 598.20$ 31%8.61$ 179.54$ 529.69$ 717.84$ 20%10.05$ 209.46$ 617.97$ 837.47$ 17%11.48$ 239.39$ 706.25$ 957.11$ 14%1000 7.84$ 134.49$ 313.81$ 456.13$ 5.47$ 228.12$ 673.47$ 907.06$ 99%7.18$ 299.23$ 883.37$ 1,189.77$ 31%8.61$ 359.08$ 1,060.04$ 1,427.73$ 20%10.05$ 418.92$ 1,236.71$ 1,665.68$ 17%11.48$ 478.77$ 1,413.39$ 1,903.64$ 14%
Commercial Customer 1-1/2" Meter 3CCF in Summer at Winter Rate Annual Increase 248,627$ Annual Increase 152,549$ Annual Increase 128,384$ Annual Increase 128,384$ Annual Increase 128,384$ Monthly Increase 40.23$ Monthly Increase 24.68$ Monthly Increase 20.77$ Monthly Increase 20.77$ Monthly Increase 20.77$ Winter/Summer Consumption 15%85%(Based on 2017 consumption by month avg.)
1-1/2" Meter - Monthly 14.15$ CCF allowed 20 Over 20CCFCustomers as of 3/25/2021 515
Monthly Consumption (CCF Fixed Charge Winter Consumption Summer Total Calculated Fixed Winter Summer Total Rate Calculated Fixed Charge Winter Summer Total Rate Calculated Annual Total Winter Summer Total Rate Calculated Annual Fixed Charge Winter Summer Total Rate Calculated Annual Fixed Charge Winter Summer Total Rate Calculated Annual
20 14.15$ -$ -$ 14.15$ 11.96$ 4.56$ 13.05$ 29.58$ 109%15.69$ 5.98$ 17.12$ 38.80$ 31%18.83$ 7.18$ 20.55$ 46.56$ 20%21.97$ 8.38$ 23.97$ 54.32$ 17%25.11$ 9.58$ 27.39$ 62.07$ 14%30 14.15$ 0.68$ 3.83$ 18.66$ 11.96$ 6.84$ 19.79$ 38.60$ 107%15.69$ 8.98$ 25.96$ 50.63$ 31%18.83$ 10.77$ 31.15$ 60.75$ 20%21.97$ 12.57$ 36.34$ 70.88$ 17%25.11$ 14.36$ 41.54$ 81.01$ 14%40 14.15$ 1.35$ 7.67$ 23.17$ 11.96$ 9.12$ 26.53$ 47.62$ 106%15.69$ 11.97$ 34.80$ 62.46$ 31%18.83$ 14.36$ 41.76$ 74.95$ 20%21.97$ 16.76$ 48.72$ 87.44$ 17%25.11$ 19.15$ 55.68$ 99.94$ 14%50 14.15$ 2.03$ 11.50$ 27.68$ 11.96$ 11.41$ 33.27$ 56.64$ 105%15.69$ 14.96$ 43.64$ 74.29$ 31%18.83$ 17.95$ 52.37$ 89.15$ 20%21.97$ 20.95$ 61.09$ 104.01$ 17%25.11$ 23.94$ 69.82$ 118.87$ 14%75 14.15$ 3.72$ 21.08$ 38.96$ 240,742$ 11.96$ 17.11$ 50.12$ 79.19$ 103%489,369$ 15.69$ 22.44$ 65.74$ 103.87$ 31%641,918$ 18.83$ 26.93$ 78.88$ 124.64$ 20%770,301$ 21.97$ 31.42$ 92.03$ 145.42$ 17%898,685$ 25.11$ 35.91$ 105.18$ 166.19$ 14%1,027,068$ 326.63%60 14.15$ 2.71$ 15.33$ 32.19$ 11.96$ 13.69$ 40.01$ 65.66$ 104%15.69$ 17.95$ 52.48$ 86.12$ 31%18.83$ 21.54$ 62.97$ 103.35$ 20%21.97$ 25.14$ 73.47$ 120.57$ 17%25.11$ 28.73$ 83.97$ 137.80$ 14%70 14.15$ 3.38$ 19.17$ 36.70$ 11.96$ 15.97$ 46.75$ 74.68$ 103%15.69$ 20.95$ 61.32$ 97.95$ 31%18.83$ 25.14$ 73.58$ 117.55$ 20%21.97$ 29.32$ 85.84$ 137.14$ 17%25.11$ 33.51$ 98.11$ 156.73$ 14%80 14.15$ 4.06$ 23.00$ 41.21$ 11.96$ 18.25$ 53.49$ 83.70$ 103%15.69$ 23.94$ 70.16$ 109.79$ 31%18.83$ 28.73$ 84.19$ 131.74$ 20%21.97$ 33.51$ 98.22$ 153.70$ 17%25.11$ 38.30$ 112.25$ 175.66$ 14%90 14.15$ 4.74$ 26.83$ 45.72$ 11.96$ 20.53$ 60.23$ 92.72$ 103%15.69$ 26.93$ 79.00$ 121.62$ 31%18.83$ 32.32$ 94.80$ 145.94$ 20%21.97$ 37.70$ 110.59$ 170.26$ 17%25.11$ 43.09$ 126.39$ 194.59$ 14%100 14.15$ 5.41$ 30.67$ 50.23$ 11.96$ 22.81$ 66.96$ 101.74$ 103%15.69$ 29.92$ 87.84$ 133.45$ 31%18.83$ 35.91$ 105.40$ 160.14$ 20%21.97$ 41.89$ 122.97$ 186.83$ 17%25.11$ 47.88$ 140.54$ 213.52$ 14%500 14.15$ 32.47$ 184.01$ 230.63$ 11.96$ 114.06$ 336.52$ 462.54$ 101%15.69$ 149.62$ 441.41$ 606.71$ 31%18.83$ 179.54$ 529.69$ 728.05$ 20%21.97$ 209.46$ 617.97$ 849.40$ 17%25.11$ 239.39$ 706.25$ 970.74$ 14%1000 14.15$ 66.30$ 375.68$ 456.13$ 11.96$ 228.12$ 673.47$ 913.55$ 100%15.69$ 299.23$ 883.37$ 1,198.29$ 31%18.83$ 359.08$ 1,060.04$ 1,437.95$ 20%21.97$ 418.92$ 1,236.71$ 1,677.61$ 17%25.11$ 478.77$ 1,413.39$ 1,917.26$ 14%907.13$ 11.96$ 456.24$ 1,347.36$ 1,815.56$ 100%15.69$ 598.46$ 1,767.29$ 2,381.45$ 31%18.83$ 718.16$ 2,120.75$ 2,857.74$ 20%21.97$ 837.85$ 2,474.21$ 3,334.02$ 17%25.11$ 957.54$ 2,827.67$ 3,810.31$ 14%
YEAR ONE YEAR TWO YEAR FIVE
Eagle Water Company Rates SUEZ Rates
YEAR THREE
SUEZ Rates
YEAR FOUR
SUEZ RatesSUEZ Rates SUEZ Rates
Exhibit No. 1 Revised
Case No. SUZ-W-18-02
J. Cary, SUEZSchedule 1a Revised
Percentage of SUEZ Tariff 50.00%62.50%75.00%87.50%100.00%
SCHEDULE 1D GENERAL METERED SERVICE: EAGLE WATER SERVICE AREA of 5/1/2021 rates of 5/1/2022 rates of 5/1/2022 rates of 5/1/2022 rates of 5/1/2022 rates
Volume Charges Per 100 cubic feet or 1CCF (748 gallons)
600CF or less 7.8400$ For all water used less than 3CCF (per CCF)0.7604$ 0.9974$ 1.1969$ 1.3964$ 1.5959$ Over 600CF (per 100CF=1CCF)0.4510$ Winter Rate (Oct 1 - Apr 30) greater than 3CCF 0.7604$ 0.9974$ 1.1969$ 1.3964$ 1.5959$
0.4510$ Summer Rate (May 1 - Sep 30) greater than 3CCF 0.9627$ 1.2628$ 1.5153$ 1.7679$ 2.0204$
Meter Charge CF allowed Monthly Monthly Monthly Monthly Monthly Monthly
5/8"-3/4"600 7.84$ No CF allowance 5.47$ 7.18$ 8.61$ 10.05$ 11.48$
1"1,000 9.64$ No CF allowance 6.99$ 9.17$ 11.01$ 12.84$ 14.68$ 1&1/4" & 1&1/2"2,000 14.15$ No CF allowance 11.96$ 15.69$ 18.83$ 21.97$ 25.11$
2" or multiple meters of equivalent capacity 3,200 19.56$ No CF allowance 18.56$ 24.35$ 29.22$ 34.09$ 38.96$
3" or multiple meters of equivalent capacity 6,400 34.00$ No CF allowance 36.21$ 47.49$ 56.99$ 66.49$ 75.99$ 4" or multiple meters of equivalent capacity 10,600 52.94$ No CF allowance 67.55$ 88.60$ 106.32$ 124.04$ 141.76$
6" or multiple meters of equivalent capacity 21,000 99.84$ No CF allowance 112.76$ 147.92$ 177.51$ 207.09$ 236.68$
8" or multiple meters of equivalent capacity 32,000 149.45$ No CF allowance 147.40$ 193.52$ 232.22$ 270.92$ 309.63$ 10" or multiple meters of equivalent capacity 45,000 208.08$ No CF allowance 210.05$ 275.78$ 330.93$ 386.09$ 441.24$
SCHEDULE 3A PRIVATE FIRE SPRINKLER AND SERVICE: EAGLE WATER SERVICE AREA
Private Fire Monthly Monthly Monthly Monthly Monthly Monthly
3"6.85$ 9.64$ 12.65$ 15.18$ 17.71$ 20.24$
4"10.37$ 14.61$ 19.18$ 23.01$ 26.85$ 30.68$ 6"25.74$ 36.28$ 47.62$ 57.15$ 66.67$ 76.20$
8"42.32$ 59.60$ 78.26$ 93.91$ 109.56$ 125.22$
10"65.97$ 92.95$ 122.04$ 146.45$ 170.86$ 195.27$
SCHEDULE 1E FLAT RATE SERVICE: EAGLE WATER SERVICE AREA
Non-Metered Monthly Monthly Monthly Monthly Monthly Monthly
Nov - April 11.75$ 20.97$ 27.53$ 33.03$ 38.54$ 44.04$
May - Oct 19.75$ 20.97$ 27.53$ 33.03$ 38.54$ 44.04$
IDEQ Drinking water fee (per potable connection)
$0.33 per month,
$4.00 annually
$0.50 bi-monthly,
$3.00 annually 0.25$ 0.25$ 0.25$ 0.25$ 0.25$
Eagle Franchise fee - within City limits 1%1%1%1%1%1%
Disconnection - business hours 15.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ Disconnection - non business hours 30.00$ 30.00$ 30.00$ 30.00$ 30.00$ 30.00$
Wholesale rate - Eagle Point Subdivision (consolidated billing)3/4"6.84$ N/A N/A N/A N/A N/A
1"8.64$ N/A N/A N/A N/A N/A
1&1/4" & 1&1/2"13.15$ N/A N/A N/A N/A N/A2"18.56$ N/A N/A N/A N/A N/A
3"33.00$ N/A N/A N/A N/A N/A
4"51.94$ N/A N/A N/A N/A N/A6"98.84$ N/A N/A N/A N/A N/A
8"148.45$ N/A N/A N/A N/A N/A
10"207.08$ N/A N/A N/A N/A N/A
Wholesale Countryside Estates Order 29113
Per 1000 Gallons 0.2404$ N/A N/A N/A N/A N/A
New Connection hookup fee 845.00$ N/A N/A N/A N/A N/A
Original hookup fee 245.00$ N/A N/A N/A N/A N/AEngineering Study 100.00$ N/A N/A N/A N/A N/ANew Well 500.00$ N/A N/A N/A N/A N/A
effective May 1, 2021
EAGLE WATER COMPANY TARIFF
Surcharge for usage greater than 600 CF per month 2/23/2009 -
2/22/2016
PHASE-IN YEAR 1 PHASE-IN YEAR 2 PHASE-IN YEAR 5
Order 30734
was effective February 23, 2009
PHASE-IN YEAR 3 PHASE-IN YEAR 4
SUEZ TARIFF
Order No. 35030