20051212Application with replacement pages.pdf

ALLS WATER
COMPANY-
1770 Sabin Dr, Idaho Falls, Idaho 83406-6747
Website: www.faliswater.com
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Tel.: [phone]'
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Fax: [phone] ,- U i'UdLiC
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November 3 2005
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702 f-S--00-0S--
Enclosed are the original and seven copies of a general rate case application from Falls
Water Company, Inc. Also, enclosed is a CD with a pdf file of the enclosed application
and Excel spreadsheet files of work papers for the attachments and exhibits in the
application.
Please contact me with any questions. Thank you for your attention to the enclosed
request.
Sincerely,
/ ,
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K. Scott Bruce
Falls Water Company, Inc.
Manager
Enclosures
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K. Scott Bruce
Falls Water Company, Inc.
1770 Sabin Dr
Idaho Falls, ill 83406
Tel. [phone]
Fax [phone]
E-mail: scott(?pJallswater.com
Representative for Falls Water Company, Inc.
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF FALLS WATER COMPANY, INc.
FOR AUTHORITY TO INCREASE ITS
RATES AND CHARGES
i C' f. \ acCASE NO. - L-.!..)- v...
APPLICATION
FALLS WATER COMPANY, INC. ("Falls Water" or "Applicant"), an Idaho
not-for-profit corporation and holder of Certificate of Public Convenience and Necessity
No. 236 from the Idaho Public Utilities Commission ("Commission ) hereby makes
application to the Commission for an order to authorize revision of its schedule of rates
for water service.
Applicant provides water service to 2 832 connections serving a population of
approximately 9 350 in Bonneville County, Idaho northeast of Idaho Falls. Falls Water
has provided service to this area for the last 45 years.
A copy of Applicant's present schedule of rates is attached hereto as Attachment
A copy of Applicant's proposed new rates and charges to provide service to
Applicant's customers is hereto attached as Attachment 'Applicant requests an
effective date for the proposed rates of April 15 , 2006.
Applicant hereby certifies that a notification of our intent to file this application
was mailed to all customers on November 7, 2005. A similar notice was released to the
local television stations and newspapers. A copy of the notice is included with this
application as Attachment C.
Applicant further states that it stands ready for immediate consideration of this
application.
The need for filing this application has come about due to the fact that the
Applicant has experienced significant growth in the past two years and current rate
schedules are inadequate to cover current operations and maintenance of the water
system. Due to the increase in customers, Falls Water has hired an additional 2 full time
employees and 1 part time employee to provide adequate customer service.
The current water right situation in Idaho has prompted Falls Water to evaluate
options for providing water to new developments. Many of the recent developments have
been built on land, which was used for agriculture and is part of an irrigation district.
Falls Water is seeking to require developers to utilize the existing irrigation right for
future developments by having the developer install pressurized secondary irrigation
systems. This option will allow Falls Water to better utilize its existing water rights and
promote responsible use of existing water rights for the land being developed.
accommodate this purpose, Falls Water has submitted a new water rate R-, Metered
Residential Services with Secondary Irrigation Systems for Lawns and Landscaping. The
excess use charge is intentionally high to discourage use of Falls Water s water for
irrigation purposes. This is because the development would be brought on to the system
and allotted only enough of Falls Water s water rights to cover in-house use by the
customers in that development. If they use water for irrigation purposes, Falls Water will
find itself short of water rights in the future.
Applicant requests the amount of water usage included in the minimum charge for
metered residential customers be reduced from 000 gallons to 8 000 gallons during the
summertime, the period starting with the April meter reading and ending with the
October meter reading. The included usage during the wintertime, the period starting
with the October meter reading and ending with the April meter reading, would be
reduced from 000 gallons to 15 000 gallons. The historical average monthly usage per
household during the six-month wintertime was 7 500 gallons per month in 2002 167
gallons per month in 2003 and 2004. The winter use is a reasonable gauge for in-house
use for the average household in our system. Falls Water feels that in-house use of 8 000
gallons for summer months would lead to greater conservation of water resources as the
households must pay for consumptive use of water on lawns and landscapes. The higher
water usage included in the wintertime rate would allow the customers to run some water
during cold weather to prevent freezing of household water lines. It would also assure
that the vast majority of our customers would not have additional charges in April due to
exceeding the average usage per month during the winter.In 2005, 82 customers
exceeded the 120 000 gallons of usage during the winter months. Most causes for
exceeding the 20 000 gallons per month were the result of leaking service lines or leaking
plumbing fixtures.
Applicant seeks a planned phase out of its flat rate. Currently the flat rate is
restricted to the all residential customers located in the SW 1/4 of Section 14, Township 2
North, Range 38 East Boise Meridian, Bonneville County, Idaho (Mobile Home Estates
Subdivision, Monte Vista Estates, and First Street Mobile Park). It is proposed that
applicant install meters for the accounts in this area over a six-year period. The meter
installation would not require additional funds. It is proposed that Falls Water use meters
that would be normally assigned to the upgrade and replacement of existing meters and
use these meters to upgrade the 585 customers in the flat rate area to become metered.
The plan would require installation of 108 meters in 2006, 105 meters in 2007, 115
meters in 2008 , 119 meters in 2009, 95 meters in 2010, and 43 meters in 2011 (see
attachment I for map of planned installations). Applicant requests that it be allowed to
begin billing these former flat rate customers under Schedule No. R-1 as soon as meters
are installed in the customers ' lot (i.e. when the 108 meters for 2006 are installed in the
customers ' lots, they would be billed at the Schedule No. R-l rate from that month
forward).
The benefits to metering all accounts are:
1. All customers would be on an equal footing and pay for water used.
2. The phasing out of the flat rate promotes conservation of water.
3. Falls Water will be able to better determine water loss in the system with all
customers metered.
Falls Water seeks to add a field collections fee to Schedule No. M. The proposed
rate would be $15.00.The rate would be imposed upon customers who fail
acknowledge the required notices of termination for non-payment on account until the
serviceman is at the home ready to terminate services and the customer then wishes to
pay the balance. The purpose for the fee is that the customer has created work for clerical
staff and servicemen by ignoring the seven-day termination notice and the 24-hour
termination notice. The company s customers must bear the cost in wages and resources
to prepare the final notice and bear the cost of sending a serviceman to terminate services
of a customer who chose to ignore the first two notices and with a simple phone call
could make a payment arrangement or could make payment. Falls Water seeks to place
the burden of these additional costs on the customers responsible for them.
Applicant seeks relief from the Commission for expenses that were incurred in
2004 and 2005 for payroll expenses incurred due to extenuating circumstances.
Applicant finalized its current rates on December 15, 2003. Early in December 2003
Falls Water was informed by its owner that the office space then occupied was needed by
the owner for expansion of the owners other businesses. Falls Water moved into its
current office space on January 2 2005. The owner for the other business ventures kept
the office staff, at the previous office building, at that office. This necessitated the hiring
of a new employee to assist with clerical/receptionist duties. This expense was not
anticipated in the rate case that was approved in December 2003. The next instance
occurred in May 2005 while preparing this rate case. The owner decided to restructure
one of the businesses and it required that one employee in that business be let go. The
owner chose to not let the employee go and put him to work with Falls Water. The
owner s other ventures have funded a portion of this employee s wages through the end
of2005 with Falls Water paying the balance. The need for the additional manpower was
needed in both cases; however, the timing was not the best. The addition of the office
staff in 2004 was necessary but was difficult to seek adjustment to our rates having just
completed a rate case.The addition of the serviceman has strained Falls Water
Company s cash flow. Exhibit F of Attachment G details these expenses and seeks to
amortize the expense over two years in the revenue requirements of this rate case in the
amount of$37 833.46 per year for two years for a total of$75 666.92.
Falls Water is currently working with the Department of Environmental Quality
to secure funding in the amount of $700 000.00 to construct two new 1500 gallon per
minute wells needed to improve water delivery to our customers. This rate case does not
include any proposed rate increases due to the construction or future operation and
maintenance of these new assets. It is applicant's intent to seek the necessary rate
adjustments to keep the company whole in a future case.
The requested increase in charges will result in revenue sufficient to pay for the
current operating expenses and provide a small return, which will be held by the
corporation for system improvements and replacement. As stated above, Falls Water
Company, Inc. is an Idaho not-for-profit corporation and is therefore not authorized to
make any distributions of profits to owners, but can utilize profits for expansion and
system improvements.
Applicant last made application for a rate increase on July 17, 2003.
Included with the application are the following attachments, schedules, and
proposed tariffs:
1. Present Rate Schedules (Attachment A).
2. Proposed Rate Schedules (Attachment B).
3. Notification sent to media and customers (Attachment C).
4. Three year Balance Sheet (Attachment D).
5. Three years Income Statement (Attachment E).
6. Calculation of Rate Base (Attachment F).
7. Comparison of Income at Present Rates and Income at Proposed Rates
(Attachment G with supporting exhibits).
8. Explanation of Rate Calculations (Attachment H).
9. Map of Planned Metering of Mobile Home Estates (Attachment I).
Falls Water Company, Inc. respectfully requests favorable consideration of this
application. Please direct any questions or correspondence related to this application to
the applicant as indicated on page 1.
Dated this 3rd day of November 2005.
Respectfully submitted
FALLS WATER COMPANY, INc.
Attachment A - Falls Water Company, Inc.
Page 1 of 5
ariffNo. 1
u.eI. No.
Canceling
I. No.
Name 01
Utility
Original Sheet No,
FALLS WATER COMPANY, INC.
SCHEDULE NO. R-
RESIDENTIAL FLAT RATE SERVICE
RATE:$17.50 PER MONTH
AVAILABLE TO ALL RESIDENTIAL CUSTOMERS LOCATED
IN THE SWl/4 OF SECTION 14, T. 2 N., R. 38 E.B.M., BONNEVILLE
COUNTY, IDAHO (MOBILE HOME ESTATES SUBDIVISION, MONTE
VISTA ESTATES, AND FIRST STREET MOBILE PARK).
Issued December 15, 2003 Effective December 15, 2003
Issued by FALLS WATER COMPANY, INC.By Title MANAGER
K. Scott Bruce
Attachment A - Falls Water Company, Inc.
Page 2 of 5
Tariff No, 1
u.c.I. No,
Canceling
u.c.I. No.
l~ame or
Utility
Original Sheet No.
FALLS WATER COMPANY, INC.
SCHEDULE NO. R-
RESIDENTIAL METERED SERVICE
RATE:$11.50 PER MONTH MINIMUM
$0.41 PER THOUSAND GALLONS ADDITIONAL FOR
ALL WATER USED IN EXCESS OF 20 000 GALLONS PER
MONTH
AVAILABLE TO ALL RESIDENTIAL CUSTOMERS EXCEPT THOSE
QUALIFYING FOR RATE SCHEDULE R-
Issued December 15, 2003 Effective December 15 2003
Issued by FALLS WATER COMPANY, INC.
Thk MANAG E R
K. Scott Bruce
Attachment A - Falls Water Company, Inc.
Page 3 of 5
ariffNo. 1
u.c.I. No.
Canceling
u.c.I. No,
Name 01
Utility
Original Sheet No.
FALLS WATER COMPANY, INC.
SCHEDULE NO. R-
RESIDENTIAL MULTI-FAMILY
RATE:$11.50 PER MONTH MINIMUM
$0.41 PER THOUSAND GALLONS ADDITIONAL FOR
ALL WATER USED IN EXCESS OF 20,000 GALLONS
PER MONTH
AVAILABLE TO RESIDENTIAL DUPLEXES , FOUR-PLEXES, AND
AP ARTMENT BUILDINGS WHERE INDIVIDUAL UNITS IN A BUILDING
ARE NOT METERED SEPARATELY OR LIVING UNITS CANNOT BE
SOLD SEPARATELY. RATES WILL BE BASED ON A PER BUILDING
METERED BASIS.
Issued December 15 , 2003 Effective December 15, 2003
Issued by FALLS WATER COMPANY, INC.By Title MANAGER
K. Scott Bruce
Attachment A - Falls Water Company, Inc.
Page 4 of 5
ariffNo. 1
u.c.I. No.
Canceling
u.C,I. No,
l'llame or
Utility
Original Sheet No.
FALLS WATER COMPANY, INC.
SCHEDULE NO. C-
METERED COMMERCIAL SERVICE READ YEAR-ROUND
RATE:$11.50 PER MONTH MINIMUM
$0.41 PER THOUSAND GALLONS ADDITIONAL FOR ALL
WATER USED IN EXCESS OF 20 000 GALLONS PER
MONTH
AVAILABLE TO ALL NON-RESIDENTIAL CUSTOMERS.
Issued December 15, 2003 Effective December 15, 2003
Issued by FALLS WATER COMPANY, INC.
Th~ MANAG E R
K. Scott Bruce
Attachment A - Falls Water Company, Inc.
Page 5 of 5
lrariffNo, 1
u.c.I. No.
Canceling
u.C.I. No.
lName or
Ptility
Original Sheet No,
FALLS WATER COMPANY, INC.
SCHEDULE NO. M
NON-RECURRING CHARGES:
RE-CONNECT FEES:
During office hours
After office hours
$20.
$40.
HOOKUP CHARGES:
%" METER
1" METER
1 %" METER
2" METER
$500.
$600.
$825.
$900.
The Company shall follow the "Rules and Regulations of the Idaho Public
ptilities Commission Governing Customer Relations of Natural Gas, Electric and Water
Public Utilities under the Jurisdiction of the Idaho Public Utilities Commission.
Issued November 30, 2001 Effective December 1, 2001
Issued by FALLS WATER COMPANY, INC.By Trt~ MANAG E R
K. Scott Bruce
Attachment B - Falls Water Company, Inc.
Page 1 of 6
rariffNo. 2
c.I. No,
Canceling
u.c.I. No.
lName 01
IUtility
Original Sheet No.
FALLS WATER COMPANY, INC.
SCHEDULE NO. R-
RESIDENTIAL FLAT RATE SERVICE
RATE:$17 50 ~19.25 PER MONTH
AVAILABLE TO ALL RESIDENTIAL CUSTOMERS WITHOUT
METERS LOCATED IN THE SW1I4 OF SECTION 14, T. 2 N., R. 38
B.M., BONNEVILLE COUNTY, IDAHO (MOBILE HOME ESTATES
SUBDIVISION, MONTE VISTA ESTATES, AND FIRST STREET
MOBILE PARK). Planned meterin of this area will move customers to the
Schedule No. R-1 Residential Metered tariff as meters are installed for the
homes.
Issued Effective
Issued by FALLS WATER COMPANY, INC.By Title MANAGER
K. Scott Bruce
Attachment B - Falls Water Company, Inc.
Page 2 of 6
ariffNo. 1
u.C.I. No.
Canceling
u.c.I. No.Original Sheet No.
L~ame or
Utility
FALLS WATER COMPANY, INC.
SCHEDULE NO. R-
RESIDENTIAL METERED SERVICE FOR CUSTOMERS NOT LIVING IN
DEVELOPMENTS REQUIRED TO USE SECONDARY IRRIGATION
FOR LAWNS AND LANDSCAPE
SUMMER RATE:Starts with meter reading in April and ends
with the meter reading in October.
$11.50 PER MONTH MINIMUM cr12.75 PER BILLING
CYCLE MINIMUM CHARGE
$QM $0.PER THOUSAND GALLONS
ADDITIONAL FOR ALL WATER USED IN EXCESS
OF 000 8 000 GALLONS PER MONTH BILLING
CYCLE.
WINTER RATE:Starts with meter reading in October and ends
with the meter reading in April. The 15th of the
month is the end of the billing cycle for November
throu h March.
$15.50 PER BILLING CYCLE MINIMUM CHARGE
$0.85 PER THOUSAND GALLONS ADDITIONAL
FOR ALL WATER USED IN EXCESS OF 15,000
GALLONS PER MONTH. EXCESS IS
CALCULATED WITH METER READING IN APRIL.
AVAILABLE TO ALL RESIDENTIAL CUSTOMERS EXCEPT THOSE
QUALIFYING FOR RATE SCHEDULE R-
Issued httectlve
Issued by FALLS WATER COMPANY, INC.
Title MANAGER
K. Scott Bruce
Attachment B - Falls Water Company, Inc.
Page 3 of 6
Tariff No, 3
u.C.I. No.
Canceling
u.C.I. No,
lName 01
Utility
Original Sheet No.
FALLS WATER COMPANY, INC.
SCHEDULE NO. R-
RESIDENTIAL MULTI-FAMILY
RATE:$11 50 PER MONTH MINIMUM $12.75 PER BILLING
CYCLE MINIMUM CHARGE $QM $0.PER THOUSAND
GALLONS ADDITIONAL FOR ALL WATER USED IN
EXCESS OF 000 8 000 GALLONS PER MONTH
BILLING CYCLE.
METERS ARE READ YEAR ROUND.
AVAILABLE TO RESIDENTIAL DUPLEXES, FOUR-PLEXES, AND
AP ARTMENT BUILDINGS WHERE INDIVIDUAL UNITS IN A BUILDING
ARE NOT METERED SEP ARA TEL Y OR LIVING UNITS CANNOT BE
SOLD SEPARATELY. RATES WILL BE BASED ON A PER BUILDING
METERED BASIS.
ssued Effective
Issued by FALLS WATER COMPANY, INC.By Title MANAGER
K. Scott Bruce
Attachment B - Falls Water Company, Inc.
Page 4 of 6
ariffNo. 4
u.C,I. No,
Canceling
u.c.I. No.
Name 01
Utility
Original Sheet No.
FALLS WATER COMPANY, INC.
SCHEDULE NO. C-
METERED COMMERCIAL SERVICE READ YEAR-ROUND
RATE:$11 50 PER MONTH MINIMUM $12.75 PER BILLING
CYCLE MINIMUM CHARGE $G-A4 $0.PER THOUSAND
GALLONS ADDITIONAL FOR ALL WATER USED IN
EXCESS OF 000 8,000 GALLONS PER MONTH
BILLING CYCLE.
AVAILABLE TO ALL NON-RESIDENTIAL CUSTOMERS.
ssued Effective
Issued by FALLS WATER COMPANY, INC.
Tlik MANAGER
K. Scott Bruce
Attachment B - Falls Water Company, Inc.
Page 5 of 6
ariffNo. 5
u.c.I. No.
Canceling
u.c.I. No,Original Sheet No.
Name 01
Utility
FALLS WATER COMPANY, INC.
SCHEDULE NO. R - 4
METERED RESIDENTIAL SERVICES WITH SECONDARY IRRIGATION
FOR LAWNS AND LANDSCAPING
RATE:$12.75 PER BILLING CYCLE MINIMUM CHARGE
$2.50 PER THOUSAND GALLONS ADDITIONAL FOR
ALL WATER USED IN EXCESS OF 8.000 GALLONS PER
BILLING CYCLE.
METERED RESIDENTIAL CUSTOMERS WHO LIVE IN SUBDIVISIONS
IwHICH WERE ALLOWED TO CONNECT TO FALLS WATER COMPANY INC.
SYSTEM WITH THE PROVISION FALLS WATER COMPANY WOULD PROVIDE
bNL Y IN-HOUSE USE AND THAT ALL LAWNS AND LANDSCAPING MUST BE
WATERED BY A WATER SOURCE OTHER THAN FALLS WATER COMPANY,
lNc.'S WATER SOURCE.
ssued Effective
Issued by FALLS WATER COMPANY, INC.
Title MANAGER
K. Scott Bruce
Attachment B - Falls Water Company, Inc.
Page 6 of 6
Tariff No. 6
D.u.c.I. No.
Canceling
D.u.c.I. No.
Name 01
Utility
Original Sheet No,
FALLS WATER COMPANY, INC.
SCHEDULE NO. M
NON-RECURRING CHARGES:
RE-CO NNECT FEES:
During office hours
After office hours
$ 20.
$ 40.
FIELD COLLECTION FEE:
Field collection of ast due balance $ 15.
HOOKUP CHARGES:
%" Meter
1" Meter
1 ~" Meter
2" Meter
$500.
$600.
$825.
$900.
The Company shall follow the "Rules and Regulations of the Idaho Public Utilities Commission
Governing Customer Relations of Natural Gas, Electric and Water Public Utilities Under the Jurisdiction of
he Idaho Public Utilities Commission.
ssued.bttectlve
Issued by FALLS WATER COMPANY, INC.By Title MANAGER
K. Scott Bruce
Attachment C - Falls Water Company, Inc.
Page 1 of
NOTICE TO FALLS WATER COMPANY. INC. CUSTOMERS
Falls Water Company, Inc. has filed an application with the Idaho Public Utilities
Commission (IPUG) for a proposed general rate increase. The filing is a proposal
subject to public review and a Commission decision before it can take effect.
Falls Water Company, Inc. seeks approval to increase rates to recover the increasing
costs of operations and maintenance, and replacing its aging infrastructure.
Falls Water is seeking a reduction in water volume included in the minimum billing
charge. Currently, up to 20 000 gallons of water is included in the minimum charge. It is
proposed to create a summer and winter rate schedule for metered residential
customers (metered multi-family residential and metered commercial users meters are
read year round). It is proposed for the winter rate that up to 15 000 gallons per billing
cycle (90 000 for the six month winter rate schedule) be included in the minimum charge
of $15.50. It is proposed that during the summer rate that up to 8 000 gallons per billing
cycle be included in the minimum charge of $12.75.
If the proposed rate increase were approved , the average metered residential
customer s annual rates would increase from $179.49 ($14.96 per month) to $295.
($24.63 per month) an average annual increase of $116.06 (average monthly increase
of $9.67) or 64.7%. Average metered commercial customer s annual rates would
increase from $323.46 ($26.96 per month) to $569.75 ($47.48 per month) an average
annual increase of $246.29 (average monthly increase of $20.52) or 76.1 %. Non-
metered residential customer s annual rates would increase from $210.00 ($17.50 per
month) to $231.00 ($19.25 per month) an annual increase of $21.00 (monthly increase
of $1.75) or 10.0%. Multi-family residential customer s rates would increase from
$181.64 ($15.14 per month) to $344.82 ($28.73 per month) an average annual increase
of $163.18 (average monthly increase of $13.59) or 89.8%.
If approved the proposed increase would increase total revenues by $258 363.
(48.2%). A copy of the application is on file in our office for examination. Please send
any comments or questions to either Falls Water Company or the Idaho Public Utilities
Commission:
Idaho Public Utilities Commission
PO Box 83720
Boise, 1083720-0074
[phone]
Falls Water Company, Inc.
1770 Sabin Dr
Idaho Falls, 10 83406
[phone]
Comments may be submitted to the Idaho Public Utilities Commission via e-mail by
going to the following website:
hap:/ /www. puc. state. id. us/comments-com pia i nts/ choose%20form. htm
Attachment D - Falls Water Company, Inc.
Page 1 of 2
Falls Water Company, Inc
Balance Sheet Comparison
As of December 31 , 2003, 2004, and 2005
Dec 31 , 2003 Dec 31, 2004 Dec 31 , 2005
ASSETS
Current Assets
Checking/Savings
129 . FWC-BofCommerce
Total Checking/Savings
Accounts Receivable
341 . Transportation Equipment
343 . Tools & Equipment
Total 101 . Utility Plant
983,470,354,
983,470,354,
69,
69,
800,100 657,276 284,
300,
357,
000.784,
000,26,443,
597,(967,62)184,
082,545,141,
300.00)300,00)300,00)
782,245,841.
108 179,165 378,336 309,
195,165 918,358 664,
328,328,328,
707,707,707,
805.40 545.48 947,
693,693,693,
195 807.45 202 682,202 682,
865,603,219,
494.494,494.
154 392,435 054,472 073.48
173 351,223 712,304 637,
5,416,
182,8,474,556.
703.109,878,
629,327,134,
672 960,010 733,164 769,
346 313,362,439,(417 930,65)
326 646,648 294.42 746 839,
395,842.814 213,105,503.
139. Misc Non-Utilities AIR
Total Accounts Receivable
Other Current Assets
129.1 . FWC Capital Improvement Fund
129.2 . Cash-Water Study Partners
129.21 . Cash-Water Study Partners-Ammon
129.22' Cash-Water Study-Bonneville Cty
129.23' Cash-Water Study Partners-Ucon
Total 129.2 . Cash-Water Study Partners
132 . Undeposited Funds
140. Accts Receivable
141 . Cust Accts Receivable
143. Uncollectable Allowance
Total 140 . Accts Receivable
Total Other Current Assets
Total Current Assets
Fixed Assets
101 . Utility Plant
303 . land & land Rights
304 . Structures and Improvements
307 . Wells
310. Generators
311 . Pumping Equipment
320 . Purification System
330 ' Tanks
331 . Water Mains
334 . Meters
335, Hydrants
340 . Office Furn & Fixt
108. Plant Depreciation
Total Fixed Assets
TOTAL ASSETS
Attachment D - Falls Water Company, Inc.
Page 2 of 2
Falls Water Company, Inc
Balance Sheet Comparison
as of December 31, 2003, 2004, and 2005
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
232 . Accts Payable
Total Accounts Payable
Other Current Liabilities
231 . FWC Accounts Payable
231.8 . Payable on Summit Park
231.9 . Crimson Valley Water Main
231.10 . Group Water Study Payable
231.11 . Group Water Study - Ammon
231.12 . Group Water Study - Bonneville
231.13 . Group Water Study - Ucon
231.14 . Group Water Study - Grant Funds
Total 231,10' Group Water Study Payable
Total 231 . FWC Accounts Payable
233 . AlP to Associated Companies
236 . Taxes Payable
236.2 . State Tax Payable
236.3 . Other Taxes Payable
Total 236 . Taxes Payable
Total Other Current Liabilities
Total Current Liabilities
Long Term Liabilities
223 . Advances from Associated Co.
224. Long-Term Debt
224.1 . Lincoln Road Proj - SRLF Loan
Total 224 . Long-Term Debt
271 . Contrib. in Aid of Construction
272 . Accum Amort - Contrib Aid Const
Total Long Term Liabilities
Total Liabilities
Equity
201 . Capital Stock
215. Retained Earnings
Net Income
Total Equity
TOTAL LIABILITIES & EQUITY
Dec 31. 2003 Dec 31. 2004 Dec 31. 2005
956.
956,
233 164.
233 164,
141,
141,
588,300,
357,
9,411,7,784.
853,464,
969,979,
969,979,
076,951,673.47
054,
054,
046.48 984,673.47
002,278 149,815,
121 164,115 966,105 381,
232.259 363.49
232,259 363.49
139 225,208 875,557 003,
118.27)826,60)(16 943,92)
258 271,396 246,904 804.42
336 274,674 396,960 619,
000,000,000,
641,064,114 817,
073,752,066,
568.139 817,144 883.
395 842.814 213.105,503.
Attachment E - Falls Water Company, Inc.
Page 1 of 2
FALLS WATER COMPANY, INC,
Comparative Income Statement
for the calendar years of 2003, 2004, 2005
Jan - Dee 2003 Jan - Dee 2004 Jan - Dee 2005
Ordinary Income/Expense
Income
400 . Operating Revenue
460 . Unmetered Revenue
461.1 . Metered Residential
461.2 . Commercial Revenue
474, Other Utility Revenue
Total 400 . Operating Revenue
Total Income
Expense
601.5 . Labor Field
601.7' labor Meter Reading
601.8 . labor Office
601.9 . Admin - labor
603 - Salary Officers & Directors
604 - Employee Benefits
610 . Purchased Water
615 . Electrical Power
618. Chemicals
620.2 . Source M&S
620.6 . Distribution M&S
620.7' Postage
620.8 . Office
620.81 . Telephone Expense
620.83 - Office Utilities Expense
631.1 . Engineering
631.2 . Accounting
631.3 . Attorney
635 . Testing
636.2 . Source Contract Repairs
636.3 . Trash
636.6 . Distribution Contract Repairs
636.7' Data Processing
641 . Rental of Property
642 . Rental of Equipment
650 . Transportation Expense
656 . Insurance Expense
660, Advertising Expense
670 . Bad Debt Expense
675.1 . Training Expenses
675.2 . Dues & Publications
675.4 . IDHW Fee Expense
675.9 - Uncategorized Expenses
Total Expense
Net Ordinary Income
104 379,121 545,124 145,
255 261,316 283.43 397 650,
138,616,531.
840,818,636,
371 618.451 263,535 964,
371 618,451 263,535 964,
910,76,432,575,
627,303.7,449,
14,424,870,38,450.
937.40 55,417,287,
565,877.824,
625,800,13,406,
112,112,112,
837,233.674,
375,
321,210,090,
043,214.24,496.43
12,430,624,055,
624,121,200,
002,724.779,
128,784,966.43
600,977,715,
475,825.893,
375,4,406,
580,756,3,410,
501,395,
199,211.198,
830,130,906.40
680,043,878,
4,425,339,818,
078.40 830,359,
609,700.521,
210,542,9,468,
519,778,054.
658,179,620,
590,210,800,
702,772.870,
217,982,247,
100,434.41 100,
345 942,391,438,473 775,
676,825,188,
Attachment E - Falls Water Company, Inc.
Page 2 of 2
FALLS WATER COMPANY, INC.
Comparative Income Statement
for the calendar years of 2003 , 2004, 2005
Other Income/Expense
Other Income
421 . Non-Utility Income
Total Other Income
Other Expense
403 . Depreciation Expense
408, Taxes
408.11 . Property Taxes
409.10 - Fed Income Tax
409.11 . State Income Tax
Total 408 . Taxes
408.10' Regulatory Fee
426 . Misc. Non-Utility Expenses
427.3' Interest Expense
615.1 . Electrical Power - Black Hawk
615.2 . Andco Well - Electricity
620.21 . Source M&S - Black Hawk Estates
620.61 . Black Hawk Distr M&S
620.62 . Andco Distr M&S
620.811 . Telephone - Black Hawk Estates
635.2. Testing - Andco System
Total Other Expense
Net Other Income
Net Income
Jan - Dee 2003 Jan - Dee 2004 Jan - Dee 2005
951.059,625.
951,059,625,
027,238,015,
957,150,128,
782,
30.084,902,
987,234,813,
811,893,320,
378.683,1,470,
515.46 852,127.46
268,(6,53)
551,
374,235.47
710,
76.45
700,131.747,
749,927.47 121,
073.752.066.
Attachment F - Falls Water Company, Inc.
Page 1 of 1
Falls Water Company, Inc.
Calculation of Rate Base
Rate Base 2005
Net Assets
Utility Plant in Service
Less: Contributions in Aid of Construction
Subtotal
Less: Accumulated Depreciation
Less: Accum Amort of Contribution in Aid of
Construction
Total Rate Base from Assets
Working Capital (using 1/8 method)
Total Proposed Operations & Maintenance
Expenses
times 1/8 (,125)
164 768,
183 855.42
417 930.
943,
573 290,
125
980 913.
400 986.
579 926.42
661.
Total Rate Base
Return on Rate Base
Return (g) 12% (Total Rate Base X .12)
651 587,
1$ 78 190,
Attachment G - Falls
Page 1 of 2
er Company, Inc.
Falls Water Company, Inc.
Comparison of Current Revenues and Expenses to Proposal
Jan 1 2005 -
Dee 31 2005 Adjustments Proposed
Ordinary Income/Expense
Income
400, Operating Revenue
460 . Unmetered Revenue 124 145,124 145,
461.1 . Metered Residential 397 650,397 650,
461.2 . Commercial Revenue 531.531,
474. Other Utility Revenue 636,636,
Total 400 . Operating Revenue 535 964,535 964,
Total Income 535 964.535 964,
Expense
601.5 . labor Field 575,640,138 215,See 1 Below
601.7' labor Meter Reading 7,449,532,981,See 1 Below
601.8 . labor Office 38,450.326.49 776,See 1 Below
601.9 . Admin - labor 287,080,367,See 1 Below
603 . Salary Officers & Directors 824,824,
604 . Employee Benefits 13,406,506,912,See 1 Below
610 Purchased Water 112.112,
615 . Electrical Power 674,134,809.See 2 Below
618 . Chemicals 375,576,952,See 3 Below
620.2 . Source M&S 090,090,
620.6 . Distribution M&S 24,496.496.43
620.7' Postage 055,815,871,See 4 Below
620.8 . Office 200,543,744,See 5 Below
620.81 . Telephone Expense 779,339,118,See 6 Below
620.82 . Bank Service Charges 370,391,762,See 7 Below
620.83 . Office Utilities Expense 966.43 966.43
631.1 . Engineering 715,715,
631.2 . Accounting 893,893,
631.3 . Attorney 4,406,4,406,
635 . Testing 3,410,3,410,
636.2 . Source Contract Repairs 395.395,
636.3 . Trash 198,198,
636.6 . Distribution Contract Repairs 906.40 906.40
636.7' Data Processing 878,800,00)078.See 8 Below
641 . Rental of Property 818,50,868,See 9 Below
642 . Rental of Equipment 359,485.845.46 See 10 Below
650 . Transportation Expense 521.3,486.44 008,See 11 Below
656 . Insurance Expense 9,468,9,468,
660 . Advertising Expense 054.054.
670 . Bad Debt Expense 620,663.284,See 12 Below
675.1 . Training Expenses 800,800,
675.2 . Dues & Publications 870,870,
675.4 . IDHW Fee Expense 247,740.988,See 13 Below
675.9 . Uncategorized Expenses 100,100,
Total Expense 473 775,573 290,
Net Ordinary Income 188,326,
Other Income/Expense
Attachment G - Falls
Page 2 of 2
er Company, Inc.
Other Income
421 . Non-Utility Income
Total Other Income
Other Expense
403 . Depreciation Expense
407 . Amortization Expense - Other
408.10' Regulatory Fee
426 . Misc. Nonutility Expenses
427.3 . Interest Expense
Total Other Expense
Net Other Income
Net Income Before Taxes
408 . Taxes
408.11 . Property Taxes
409.10' Fed Income Tax
409.11 . State Income Tax
Total 408 . Taxes
625,
625.
015,
320,
470,
127,
934.
308,
880,
128.
782,
902,
813.
Net Income After Taxes 066.
625,
625,
015,
833.46 See 14 Below
035,See 15 Below
1,470,
17,455,See 16 Below
102 810,
184,
131 510,
128.
539,See 17 Below
994,See 18 Below
662,
833.
714,
327,
757,
091,
180 173.
Return on Rate base Requested 190,
Total Increase
Requested
Total Revenue
Requested
Percentage Increase Requested
258 363,
794 327,
48,
Notes:
1) See Exhibit 'A' - Adjustment Calculations for Proposed 2006 Payroll and Benefits
2)See Exhibit 'H' - Electrical Usage Worksheet for Details
3)See Exhibit 'B' - Chemicals
4)See Exhibit 'C' - Item 2 - Postage Adjustments
5) See Exhibit 'C' - Item 1 - Printing & Material Adjustments for New Customers
6)See Exhibit 'C' - Item 4 - Phone Expense
7)See Exhibit 'C' - Item 7 - Bank Charges
8) See Exhibit 'C' - Item 5 - Data Processing Adjustment
9)See Exhibit 'C' - Item 6 - Property Rental
10)See Exhibit '0' - Equipment Rental Adjustment
11 )See Exhibit 'E' - Transportation Expense Adjustment
12)See Exhibit 'C' - Item 8 - Bad Debt Expense
13) Maximum Charge for the DEQ fee for systems with more that 2 747 connections
14) See Exhibit 'F' - Amortized Expense Request
15) IPUC regulatory fee based on requested total revenue multiplied by the 2005 rate of .002562 set by the IPUC
16) See Exhibit 'C' - Item 3 - Interest Expense
17) See Exhibit 'G' - Item 2 - Federal Income Taxes
18)See Exhibit 'G' - Item 3 - Idaho State Income Taxes
Attachment G - Falls Water Company, Inc.
Exhibit A of Attachment G
Page 1 of 4
Adjustment Calculations for proposed 2006 Payroll and Benefits:
Calculation for 4th Quarter 2005 Payroll:
Oct-Nov-Dec-Total 4th atr Totals by Group
Office Staff $ 2,415.41 923.2,415.41 $ 7 754.
Office Staff $ 1,479.849.1,479.$ 4 807,562.46
Field labor $ 1 625.625.625,$ 4 877.40
Field labor $ 2 648.310,648.$ 8 607,
Field labor 119.48 119.48 119.48 $12 358.44 843.
Administration $ 4 857,857.857,$14 571.571.
Meter Reader 827.827,827.$ 2,483,2,483.
Directors $ 1 152.152.152.$ 3,456.3,456.
Empl Bene 218.218.218.$ 3 656.656,
Total $20 344.$ 21 884.$ 20 344,30 $62 573.
Calculation for 2006 Payroll:
Calculation of 2006 Payroll usinq 2005 Year end Waqe rates:
Office Staff
Office Staff
Field labor
Field labor
Field labor
Administration
Meter Reader
Director
Director
Rates
12.
15,
14.
3,484.
108.
700,
500.
500.
Annual
GrossHours roll
2080 $ 26 832,
2080 $ 16 640,
2080 $ 33 009.
2080 $ 29 120.
12 $ 41 808,
12 $ 49 296,
9 $ 6 300.
12 $ 6 OOO.
12 $ 6 000,
% for
Employer
Payroll Tax
& Workers Annual TotalComp Payroll
1557 $ 31 009.
1557 $ 19 230.
1824 $ 39 030.
1824 $ 34,431.49
1824 $ 49,433.
1824 $ 58 287.
1824 $ 7,449.
1520 $ 6 912,
1520 $ 6 912.
Attachment G - Falls Water Company, Inc.
Exhibit A of Attachment G
Page 2 of 4
Annual Employee 401 k Benefit effective January 2006 using 2005 wage rate:
Employee Employer Employer
401k Contribution Contribution Contribution
Percent Percent Amount
Office Staff 4% $073.
Field Labor 4% $320.
Field Labor 4% $164.
Field Labor 4% $672,
Administration 4% $971.
Total Employer Contribution 401 k 202,
Health Insurance increase:
2005 2005 2006 2006
Monthly Annual Monthly Annual
Company Company Company Company
Portion Portion Portion Portion
of Ins.of Ins.of Ins,of Ins.
Field Labor 325,900.500.$ 6 000.
Field Labor 325.900.500,$ 6 000,
Field Labor 325.900.500,$ 6 000,
Administration 325,900.500.$ 6 000.
Total $ 15 600,$24 000.
2006 Payroll Totals using 2005 wage rates:
Office Lbr
Field Lbr
Admin Lbr
Meter Reader
Directors
Employee Benefits
$ 50 240.
$122 895.
$ 58 287.
$ 7,449.
$ 13 824,
$ 22 802.
Attachment G - Falls Water Company, Inc.
Exhibit A of Attachment G
Page 3 of 4
Calculations to adjust 2006 Payroll to include pay raises at beginning of 2006:
Histo of Em ee wa es 2000 throu h 2005 with osed wa e increases in 2006 & 2007:
Wage Rate Wage Rate Wage Rate Wage Rate Wage Rate
Employees Hire Date 2000 2001 2002 2003 2004
Office Staff 5/31/2005
Field labor 5/10/2005
Office Staff 1/5/2004
Field labor 4/21/2003 11.12,
Meter Reader 7/10/2000 500,500.500.600,600.
Administrative 5/3/1999 166.500.666.850.950,
Field labor 3/4/1988 2,426.600.200.250.350.
2006 2007
Proposed Proposed Proposed Proposed
Wage Rate Wage Rate Wage Rate Wage Rate Wage Rate
Employees 2005 2006 % Increase 2007 % Increase
Office Staff 25%88%
Field labor 19.19.00%20.00%
Office Staff 12,13,00%14,00%
Field labor 14.14.00%17.44 18.61%
Meter Reader 700.750.14%800,67%
Administrative 108.395,00%703.00%
Field labor 3,484,727.00%988,00%
Analysis of Annual waqe increase in 2001 throuqh 2005:
Avg Annual
Employees 2001 2002 2003 2004 2005 % Increase
Office Staff 00%00%00%00%00%00%
Field labor 00%00%00%00%00%00%
Office Staff 00%00%00%00%35.79%17,89%
Field labor 00%00%00%13.64%12.00%55%
Meter Reader 00%00%20.00%00%16,67%33%
Administrative 10.53%76%00%60%00%38%
Field labor 14%23.08%56%08%00%77%
CPI* Annual % Increases 70%90%10%30%84%57%
* Consumer Price Index
Attachment G - Falls Water Company, Inc.
Exhibit A of Attachment G
Page 4 of 4
Gross Annual Employee s Waqes without Employer Payroll Expenses:
ees
Office Staff
Field Labor
Office Staff
Field Labor
Meter Reader
Administrative
Field Labor
Annualized
2006 Payroll
840.
583.
173.
576.
750,
746.
734.
Annualized
2007 Pa roll
360.
662.
582.
264.
200.
56,438.
865.
Increase in Health Insurance & 401 k proqram with Company Funds Matchinq Effective in 2006:
Employee Benefits
Health Insurance for 4
employees (ill $500.00/mo
401 k for 5 employees
Annual Employee Benefits
2006 2007
000.00 24 000,
912,57 8 552,
$ 31 912.57 $ 32 552.
Total Payroll Costs including Employer Taxes & Workers Comp Insurance:
Field Lbr
Meter Reader Lbr
Office Lbr
Admin Lbr
Directors Salary
Employee Benefits
Totals
2006
$138 215.
$ 7 981.
$ 42 776.
$ 62 367.
$ 13 824,
$ 31 912,
2007
$151 102.
$ 8 513,
$ 45 005,
$ 66 733.46
$ 13 824.
$ 32 552.
$297 077.48 $317 731,
Attachment G - Falls Water Company, Inc.
Exhibit B of Attachment G
Page 1 of 3
Costs to Chlorinate Water:
In July and August of 2005, Falls Water Company, Inc.'s coliform water samples showed
positive presence of coliform. The decision was made to begin a voluntary chlorination
treatment of our system. The chlorination pumps were purchased in October 2005 and
treatment is expected to begin in late October or early November 2005. The treatment will be a
continuous year round process. Chlorine pumps will be installed at Wells #1 , #2, #4, #5, #8.
All other wells will continue to distribute untreated water when used. The chlorination system
pumps will pump a 12% bleach (CL2) solution at 0,25 ppm, The 12% bleach solution has a
cost of $105.17 per 50-gallon barrel including Idaho sales tax. A $60.00 energy surcharge per
delivery is assessed. We would order 6 times per year for annual delivery charges total of
$360,00,
2001
Well #1
Well #2
Well #3
Well #4
Well #5
Pump #6
Pump #7
Well #8
Annual
Production
121,447 000
131,438 000
161 000
084 000
166 125 000
250 721 000
730 000
558 000
775 264 000
Hours
to Pump 12% Bleach Total Annual
Pump Flow Annual Feed per 12% Bleach
GPM Production Hour
(gp
Consum tion
500 4048.062 251
500 4381.062 272
1500 523.187
800 3460,100 346
1500 72,
Total Gallons/Year
Gallons per Barrel
Total # of Barrels/Year
Cost per Barrel
Annual Cost
Annual Delivery Charges
Annual Total Costs
187
980
$105.
103.40
$360,
$2,463.40
2001 Total Customers 1967
Cost per customer $ 1.
Avg Water Usage/Customer/Year 394 135
Attachment G - Falls Water Company, Inc.
Exhibit B of Attachment G
Page 2 of 3
2002
Well #1
Well #2
Well #3
Well #4
Well #5
Pump #6
Pump #7
Well #8
Annual
Production
138 179 000
75,474 000
25,414 000
315 000
215 828 000
102 042 000
118 226 000
8,407 000
740 885 000
Pump Flow
GPM
500
500
Hours
to Pump
Annual
Production
4605.
2515,
12% Bleach Total Annual
Feed per 12% Bleach
Hour
(gp
Consum tion
062 286
062 156
1500
800
636.
4496.42
187
100
119
450
1500 93.41
Total GalionslYear
Gallons per Barrel
Total # of BarrelslYear
Cost per Barrel
Annual Cost
Annual Delivery Charges
Annual Total Costs
187
028
$105.
2002 Total Customers 2006Cost per customer 1 ,
Avg Water Usage/CustomerlYear
2003
Well #1
Well #2
Well #3
Well #4
Well #5
Pump #6
Pump #7
Well #8
Annual
Production
218 000
880 000
976 000
192 962 000
285 608 000
188 522 000
581 000
044 000
928 791 000
369 334
Hours
to Pump 12% Bleach Total Annual
Pump Flow Annual Feed per 12% Bleach
GPM Production Hour Consum tion
500 1040.062
500 2562.062 159
1500 2144.187 401
800 5950.100 595
1500 1078.
Total GalionslYear
Gallons per Barrel
Total # of BarrelslYear
Cost per Barrel
Annual Cost
Annual Delivery Charges
Annual Total Costs
187 202
1,421
$105.
2003 Total Customers 2196
Cost per customer
Avg Water Usage/CustomerlYear 422 947
208.
$360.
568.
944.
$360,
304.
Attachment G - Falls Water Company, Inc.
Exhibit B of Attachment G
Page 3 of 3
2004
Well #1
Well #2
Well #3
Well #4
Well #5
Pump #6
Pump #7
Well #8
Annual
Production
575 000
346 000
Pump Flow
GPM
500
500
237 000
235 846 000
185 053 000
106,462 000
043 000
789 562 000
2004 Total Customers 2464
Cost per customer 1 ,
Avg Water Usage/CustomerlYear
Estimated
2005 2004 Avg Cost 2005
Customers er Customer Costs
2832 $952,
Hours
to Pump
Annual
Production
2485,
3244.
12% Bleach
Feed per
Hour
(gp
062
062
1500
800
980.41
4913.46
187
100
1500 22.
Total GalionslYear
Gallons per Barrel
Total # of BarrelslYear
Cost per Barrel
Annual Cost
Annual Delivery Charges
Annual Total Costs
187
320,439
Estimated Cost of Chlorine in November and December 2005:
Well #5 will run 24/7
Well #2 will run to meet peak demands - approx 4 hours per day
Well #2
Well #5
Pump Flow 61 days ofGPM Production
500 7 320 000
800 70 272 000
12% Bleach
Hours Pumps Feed per
will Run Hour 244 0.0621464 0.100
Gallons per Barrel
Total # of Barrels
Cost per Barrel
Nov - Dec 2005 Cost
Delivery Charge
Total Costs
Total Annual
12% Bleach
Consumption
in Gallons
154
201
183
491
034
$105,
Total Annual
12% Bleach
Consumption
in Gallons
146
161
$105.
208.
$360.
568.
$315.
$60,
$375.
Attachment G - Falls Water Company, Inc.
Exhibit C of Attachment G
Page 1 of 3
Adjustment Calculations for Miscellaneous Expenses:
Item 1 - Printing and Material for New Customer Billings Annualized:
Total New Connections 2005: 3561
Adjust total new connections to reflect addition of connections during 2005:
Number of Units Needed
Cost per Unit
Material Costs
Printing Cost per Unit
Printing Costs
Misc Services for Mailings
Total Misc Service Costs
Statements
2136
014
29,
106.
075
160.
1781
Window #10
Envelo
2136
026
55,
000
Total Costs
Annual CCR'for
& Spouts Supplies
356
035
12.46
35.
090
32.
#9 Reply
Envelo
2136
040
85.44
000
183.
142.40
192.
517,
25.
25.
10 Sales Tax (5%)
Adjustment for Billing Materials for New Customers
Miscellaneous services include statement folding & inserting, postage metering & sorting,
Item 2 - Postage Costs for New Customers Annualized:
Postage ~ bulk rate for Billings 2136 278 $ 593.
Postage for New Customer** Mailings for existing homes:
Using number of new customers from 1/1/05 - 10/18/05 600 37 $ 222.
Total Adjustment to Postage $ 815.
New customers are defined as customers moving into a new or existing home within Falls
Water Company s service area.
Item 3 - Interest Expense:
FPG LOAN
VAN LOAN
TRUCK LOAN
OEQ SRLF
2005
781,
221,
668,
4,458.
$14 135.
2006
361.41
411.
675.
$17,455.
Attachment G - Falls Water Company, Inc.
Exhibit C of Attachment G
Page 2 of 3
Item 4 - Phone Expense:
Dan s Cell Phone billed by Frontier Property Group (ill $39.15 per month. 2005 telephone expense
includes charges for July - December 2005. Adjust to include January - June charges to annualize:
Months Rate
39.Jan - June 6 $
Total
$ 234.
Rate increase for Digline booked to phone expense (tickets are faxed to our office):
Monthly Contract
Credit for Free Locates
Total # of annual Locates 161.
Total Adjustment for Telephone Expense:
Dan s Cell Phone
Digline
234,
104.46
339.
Item 5 - Data Processing Adjustment:
Old Rate
$ 47.
(50.40)$ 1,
New Rate
$ 52.80
$ (52.80) $
1 .32
Annual
Charges
under Old
Rate
570.
(604.80)
1,462.
1,428,
Annual
Charges
under NewRate Difference
$ 633,60 $ 63,
$ (633.60) $ (28.80)
$ 1 532,52 $ 69.
$ 1 532.52 $ 104.46
Lease agreement for computers and software from parent company completed April 2005:
Remove 2005 Data Processing exp Jan - Apr 2005 pmts of $500.00 per month
Increase in annual software maintenance for Sensus Auto Read software
Net adjustment to Data Processing
Item 6 - Rental of Property:
Pmt Amt
Office at 1770 Sabin Dr $ 864,
2006 lease pmt to Evans Grain $ 1 500.
Total
# of Pmts Total
12 $10 368.
$ 1 500.
$11 868.
$(2 000.00)
$ 200,
$(1,800.00)
Attachment G - Falls Water Company, Inc.
Exhibit C of Attachment G
Page 3 of 3
Item 7 - Bank Service Charges:
Estimating average of $2 500.00 per month of credit card receipts:
Statement Charge
Disc Rate
Total
Monthly$ 7.
24% $ 56,
Item 8 - Bad Debt Expense:
2002
2003
2004
Actual Bad
Debt Ex ense
4619.
4658.
5179.
Annual Gross
Revenues
340557.45
371618.
451263.
Average Rate of Decline in % of Bad Debt Exp
compared to Annual Gross Revenues
Bad Debt Exp rate for 2006
Annual
$ 90,
$ 672.
$ 762.
Bad Debt
as a % of
Gross Rev.
356%
254%
148%
104%
043%1
103%
106%
209%
Attachment G - Falls Water Company, Inc.
Exhibit D of Attachment G
Page 1 of
Adjustment Calculations for Equipment Rental Expense:
Estimate for Rental Equipment use in Oct - Dec 2005 using new rates:
3 dig ups in Lincoln Town site
Valve box dig up on Bliss Dr
4 fire Hydrant replacement/repairs
265 Crimson Dr Service Line Repair
Delete Service at169 Nassau
Stevens Dr Apt Meter Upgrades
3 Meter barrel Rehabilitations
Backhoe
Backhoe Dum Trk $50.00/hr
5 $ 400.
1 $ 100.12 6 $ 600,
4 $ 200.
0 $ 150.
0 $ 200,
4 $ 300.
$ 1 950.
Sales Tax $ 97.
$ 2 047.
Total adjustment for known rental equipment expense in 2005 I $ 2,992.50 I
Dump Trk
$45.00/hr
$ 225.
$ 45.
$ 270.
$ 180.
$ 180.
$ 900.
$ 45.
$ 945.
Increase in Rates for rental of Backhoe & Dump Truck effective September 1, 2005:
Backhoe
Dump Truck
Old Rate New Rate Difference
40.00 50,00 10,
35,00 45.00 10.
Jan - August 2005 Backhoe Dump Truck
Invoices Hours Rate Cost Hours Rate Cost
FVS Inv 6578 0.40 35.14,
Tony Wise Inv 9 40.232.
Tony Wise Inv 10 10.40,404.35.175.
Tony Wise Inv 15 14.40,588.12.35.420,
Tony Wise Inv 19 19.40,796.11,35.385.
Totals 034.980.
Sales Tax 122,49.
Totals 156,029.
Attachment G - Falls Water Company, Inc.
Exhibit D of Attachment G
Page 2 of 2
Charqes with new hourly rates:
Jan - August 2005
Invoices
FVS Inv 6578
Tony Wise Inv 9
Tony Wise Inv 10
Tony Wise Inv 15
Tony Wise Inv 19
Totals
Sales Tax
Totals
Difference
Total Adjustment
Hours
0.40
10.
14.
19.
1$ 485.76 I
Backhoe
Rate
50.
50.
50.
50.
40.
Cost
20.
290,
505.
735.
796.
346.
117.
2,463.
307.
Dump TruckHours Rate
12.
11.
45.
45.
35,
Cost
225.
540.
385.
150.
57,
207.
178.
Attachment G - Falls Water Company, Inc.
Exhibit E of Attachment G
Page 1 of 2
Transportation Expense Adjustment Calculation for 2006:
Adjustment to 2005 Transportation Expense:
Dan Tony Lyle
Gallons of use
2004 November 159.606 122.257
December 128.664 153.828
2005January 85.189 124.778
February 114.549 179.098
March 86,765 108.648
April 154.035 191.071
May 67.354 134.707 142.329
June 188.457 133.284 136,330
July 170.557 150.155 144,794
August 166.254 186.722 170.140
September 137.241 202.543 141.890
October 175,091 151.782 148,398
November 165.627 159,606 122,257
December 165.627 128.664 153.828
Totals 236.209 688.001 763,561
* Use November and December 2004 use for Tony and Lyle and avg June through Sept for Dan in
November and December
Estimate 4th Qtr 2005 Transportation Expense:$/Gallon Dan Tony Lyle
Oct -Dec 2005 ~ $2,87 $ 1,446,59 $ 1 259.68 $ 1 216.Tires 757.13 900.
Sherry s Trip
Mileage for Business Errands in Scott's Truck
Fluid's & Cleaners for Dan s Truck
License Plate Renewal for Tony s Van
Hotel for Tony s AWWA Conference
Service Tony s Van Transmission
Total
$ 3 923.
$ 1 657.
$ 636.
120,
$ 84,
$ 40,
$ 318.
150.
$ 6 930.
Attachment G - Falls Water Company, Inc.
Exhibit E of Attachment G
Page 2 of 2
Adjustment of 2005 Expense to adjust for month's that Dan did not work in 2005 for FWC:
Estimate that Dan s total gasoline use falls in range of Tony and Lyle s use for 2005 (Trucks are
all 1 Ton vehicles with similar miles per gallon):
Tony
Lyle
688.001
763.561
Total Gallons 3,451.562
1725.781Average use
Revised 2005 annual gasoline use and expense totals to adjust for Gasoline Price increase:
Dan
Tony
Lyle
Annual Total
Gallons Used $ per Gallon Expense
725.781 2.869 $ 4 951.
688,001 2.869 $ 4 842,
763.561 2,869 $ 5 059.
$ 14 853,
Actual Expense for January - September 2005 and Estimated expense for October - December
2005 same as above:
2005 Dan Tony Lyle
January 150.252.
February 205,357.
March 185,206,
April 401.395,
May 76.307.324.
June 417.295,301.
July 374.335,328,
August 417.432.396.26
September 362.46 550.369.
October 496,432.424.
November 475.457,350.
December 475.369,441.
Total $ 3 095.122.$ 4 149.48 $ 11 367.
Adjustment to Transportation Expense for 2006:
Adjustment to included use for Dan s truck Jan - Apr 2005 and adjust
price per gallon of gasoline to $2.869 (see above calculation)
2005 expense based on actual costs and estimated 4th Quarter 2005
Adjustment total for qasoline use by Dan and price per qallon increase
$14 853.
$11 367.
$ 3,486.44
Attachment G - Falls Water Company, Inc.
Exhibit F of Attachment G
Page 1 of 1
Amortized Expense Request:
In November of 2003, Falls Water Company s parent company needed the office space that
Falls Water Company occupied at 2025 East First Street in Idaho Falls, Idaho. As of December
, 2003 Falls Water Company had signed a lease for the office space it currently occupies at
1770 Sabin Drive in Idaho Falls , Idaho. The physical move to new office space created a need
for a receptionist/clerical position, The office help at the old office was shared by the businesses
in the office and they were all part-time help. The parent company kept these employees for the
staffing needs of the old office. FWC was forced to hire an employee to fill this position.
Our last rate case was finalized on December 15, 2003. Having just completed a rate case , the
customers would not have been accepting of another increase so soon. When we hired Sherry
McNett on January 5, 2004 her wages were not included in the rate case that we prepared in
2003.
In April of 2005, FWC's parent company changed the organization of another one of its
subsidiaries and outsourced the maintenance needs for the subsidiary to a third party. The
maintenance man, Dan Hunting, was assigned to FWC rather than being laid off. Again , the
current rates do not include this employees wage rate. The parent company has helped out on
this employee s payroll expense by1/2 of his payroll for May through July 2005 and 1/4 of his
payroll expense for August through December 2005.
Falls Water Company, Inc. is requesting the opportunity to be made whole for the payroll
expenses for Sherry and Dan for the time they have been employed under the current rate
structure. We will not seek help with the increased rent costs , utilities , and office expenses
associated with the move to our current location for the time that the current rate structure has
been in place.
2004
Sherry McNett $25 870,
Dan Hunting $
$25 870.
2005
$31 018.
$18 777.
$49 796.
Total
$56 889.
$18 777.
$75 666,
Amortized over two year period I $37 833.46
Attachment G - Falls Water Company, Inc.
Exhibit G of Attachment G
Page 1 of 1
2006 Estimated Taxes:
Item 1 -Idaho Property Taxes
2003 2004 Value 2004 2005
Equivalent 2004 Property per 3"3" Equivalent 2005 Property
Tax Code Pipeline Property Tax Equivalent Pipeline Property Tax
Area #Miles Valuation Amount Mile Miles Valuation Amount
02-0007 300.161.4448.920.141.
23-0000 717.82.4448,015.220.
30-0000 514,326.4448.958.331.
44-0000*881.485.4448.
74-0000 11.227.651.4448,18.365.015.
79-0000 311.286.4448.181.334.
80-0000 36,160 863,970.4448.29.132 035.617.
81-0000 187,124.4448.47 7.44 096.405.47
Light Distr #2 - Lot 35 Block 15 10,10.
Light Distr #2 - Lot 2 Block 1 10.10.
Light Distr #1 - Lot 17 Block 14 12.12.
Sargent Well Property 19.19.
Light Distr #2 - Lot 1 Block 1 10.10,
74.151,73,128.
Black Hawk Water System no longer served by Falls Water Company
Item 2 - Federal Income Tax
Est 2005 Est 2006
Tax Tax
Net Income before Tax $11 880,$130 966,
Tax Calculation:
$0 - $50 000 ~ 15%$ 1 782,500.
$50 000 - $75 000 ~ 25%$ 6 250.
$75 000 - $100 000 ~ 34%$ 8 500.
$100 000 - $335 000 ~ 39%$ 12 076.
Total Federal Income Taxes $ 1 782,$ 34 326,
Item 3 - Idaho State Income Tax
Est 2005
Tax
Net Income before Tax $11 880.
Tax Calculation:
Idaho Income Tax Rate 7.6% $ 902.
Est 2006
Tax
$130 966.
$ 9 953.46
Attachment G - Falls Water Company, Inc.
Exhibit H of Attachment G
Page 1 of2
Falls Water Company, Inc.
Analysis of 2000 to 2004 Power Costs and Water Use per Customer
for support of 2005 rate case
Annual Totals Ad'usted to use 2005 rates for Utah PowerTotal Usage/Other Total Total TotalYear KWH Amount Demand KW Demand Amt. Billed Amt
2000 1 025,446 $ 32 383.73 2 716 $ 26 678.49 $ 59 062.
20011 292 114 $ 40 141.30 3 242 $31 812.42 $ 71 953,
2002 1 253 265 $ 41 077 .39 2 790 $ 27 394.53 $ 68,471.
2003 1 339 729 $ 53 970.14 3 659 $ 36 667.16 $ 90 637.
2004 1 292 701 $ 40 084.47 3 826 $ 37 797.03 $ 77 881.
Total Avg
Customers Annual Water Water
at Year End Production Prod/Cust
1942 656,477 000 338 042
1967 775 263,428 394 135
2006 740 884 299 369 334
2196 928 790 833 422 947
2464 789 561 383 320,439
Totals 177 809 $175 273.517 $133 671.14 $ 308 944.44 Avg annual use per customer I 368 979 I
Avg Annual Avg KWH Average Avg Demand Avg Gallons
KWH per Cost per Demand KW Cost per Avg Total Cost per KW H
Year Customer Customer /Customer Customer per Customer per Customer
2000 528 16.1.40 13.30.41 640
2001 657 20.41 16.36,600
2002 625 20.48 13.34.591
2003 610 24.16.41.693
2004 525 16,15.31.611
Avg Totals 589 19.15.34.627
Estimated Total Customers YE 2005 2820
KWH Charges
KW Demand Charges
2005 5 Yr Cost
Customers Averaqes
2820 $ 19,
2820 $ 15.
Average
Power Costs
$ 55 500.25
$ 42 640.
$ 98 140.
017
$ 99 809.
Approved Utah Power Rate increase not in calc
Total power exp for 2005 customer base using Avg
Avg of 5 yr gallons/KWH
averages
The above analysis shows the effects of weather and system growth on the power consumption by the customers in the
system. The year 2003 was very hot and dry and this is reflected in the average water use per customer of 422 947 gallons
per year. The year 2004 was not as hot with temperatures not going into the 100's and the spring was wet through
mid-May, The interesting result of the growth in 2003 and 2004 is that while average water use per customer was highest in
2003 and lowest in 2004 the growth meant that more pumps were online together and for longer periods of time to meet the
increased demand from new customers.
Attachment G - Falls Water Company, Inc.
Exhibit H of Attachment G
Page 2 of 2
The demand charges in 2004 compared to 2003 reflect the increased time that pumps were running to meet demands
created by the increase in customers during the year even though use per customer decreased by 25%.
Falls Water Company needs to construct two new wells in the next year. We currently have a ranking of 6th on the
state revolving loan funds current fiscal year project list. We are seeking two 1500 gallon per minute wells to assist in
meeting peak demand needs and correct pressure deficiencies in the system during peak demand.
Attachment H - Falls V'" ',;:r Company, Inc.
Page 1 of 2
Calculation of Rate by Customer Class:
Present Rates:
Flat Rate Customers:
Number of Customers
X Present Rate of $17.
X 12 Months
583
202,
122,430.
Total Flat Rate Residential Revenues $122,430.
Metered Commercial:
Number of Customers
X Present Rate of $11,471.
X 12 Months 658,
Annual Excess Usage in 1000's of Gallons 189
Annual Excess (Qt $0.41 per 1000 gal.047.
Total for Metered Commercial 705,
Metered Residential & Multi-family Residential:
Multi-family Residential:
Number of Customers
X Present Rate of $11,563.
X 12 Months 762.
Metered Residential:
Number of Customers 147
X Present Rate of $11.690.
X 12 Months 296 286.
Annual Excess Usage in 1000's of Gallons 202,414
Annual Excess (Qt $0.41 per 1000 gal.989.
Total for Metered Residential $386 037,
Total Revenue at Present Rates $521 173,
Attachment H - Falls '1/1-: ~r Company, Inc.
Page 2 of 2
Calculation of Rate by Customer Class:
Proposed Rates:
Flat Rate Customers:
Jan - Apr 2005
Number of Customers
X Proposed Rate of $19.
X 4 Months
583
$ 11 222.
$ 44 891,
May - Dec 2005 - After installing 100 metersNumber of Customers 483
X Proposed Rate of $19.25 $ 9 297.X 8 Months $ 74 382.
Metered Commercial:
Number of Customers
X Proposed Rate of $12.
X 12 Months
Annual Excess Usage in 1000'of Gallons
Annual Excess (ill $0.85 per 1000 gal.
Total for Metered Commercial
Metered Residential & Multi-family Residential:
Multi-family Residential:
Number of Customers
X Proposed Rate of $12.
X 12 Months
Annual Excess Usage in 1000'of Gallons
Annual Excess (ill $0.85 per 1000 gal.
Total for Multi-family Residential
Metered Residential:
Winter Rate:
Number of Customers - Jan - Apr 2005
X Proposed Rate of $15.
X 4 Months
Number of Customers - Nov - Dec 2005
X Proposed Rate of $15.
X 2 Months
Summer Rate:
Number of Customers - May - Oct 2005
X Proposed Rate of $12.
X 6 Months
Annual Excess Usage in 1000'of Gallons
Annual Excess (ill $0.85 per 1000 gal.
Total for Metered Residential
Total Revenue at Present Rates
522.
102
624,
058
147
$ 33 278.
247
$ 34 828.
247
$ 28 649,
305 739
273,
$ 17 086.
7,497,
399,
$ 133 114,
$ 69 657,
$ 171 895.
$ 259 878.
$119 273.
$ 23 359.
$ 16 896,
$634 545.
$794 073,
Attachment I - Falls Water Company, Inc.
Page 1 of 1
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ESTAl
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