2011Annual Report.pdf

RECEIVED
20I2APR 16 f'4 3:22
ANNUAL REP O •MSS
OF
FALLS WATER CO., INC.
NAME
2180 N. Deborah Dr., Idaho Falls, ID 83401
ADDRESS
TO THE
IDAHO PUBLIC
UTILITIES COMMISSION
FOR THE
YEAR ENDED December 31, 2011
Falls Water Company Confidential 4/13/2012 Page 1
ANNUAL REPORT FOR WATER UTILITIES TO
THE IDAHO PUBLIC UTILITIES COMMISSION
FOR THE YEAR ENDING December 31 2011
COMPANY INFORMATION
I Give full name of utility
Telephone Area Code
E-mail address
2 Date of Organization
3 Organized under the laws of the state of
4 Address of Principal Office (number & street)
5 P.O. Box (if applicable)
6 City
7 State
8 Zip Code
9 Organization (proprietor, partnership, Corp.)
10 Towns, Counties served
Falls Water Co., Inc.
[phone]
[e-mail]
1/7/1959
Idaho
2180 N Deborah Dr
Idaho Falls
Idaho
83401
Corporation
Bonneville County and portions of Ammon, Idaho
11 Are there any affiliated companies? No
If yes, attach a list with names, addresses & descriptions. Explain any services
provided to the utility.
12 Contact Information Name Phone No.
Emergency Service
13 Were any water systems acquired during the year or any additions/deletions made
to the service area during the year? No
If yes, attach a list with names, addresses & descriptions. Explain any services
provided to the utility.
14 Where are the Company's books and records kept?
Street Address 2180 N Deborah Dr
City Idaho Falls
State Idaho
Zip 83401
Rev 3/02 Page 1
President (Owner) Brent Johnson 208-709-2669
Vice President
Secretary
General Manager K. Scott Bruce 208-522-1300
Complaints or Billing K. Scott Bruce 208-522-1300
Engineering Tony Wise 208-522-1300
Tony Wise 208-522-1300
Accounting K. Scott Bruce 208-522-1300
Falls Water Company Confidential 4/13/2012 Page 2
NAME: Falls Water Co.. Inc.
COMPANY INFORMATION (Cont.)
For the Year Ended December 31, 2011
15 Is the system operated or maintained under a
service contract? No
16 If yes: With whom is the contract?
When does the contract expire?
What services and rates are included?
17 Is water purchased for resale through the system? Yes, Leased well site within FWC's Service Area
18 If yes: Name of Organization Lincoln Land Company LLC
Name of owner or operator Well operated by Falls Water Company, Inc.
Mailing Address P0 Box 1768
City Idaho Falls
State Idaho
Zip 83403
Gallons/CCF $Amount
Water Purchased 53,611,300 $ 3,300.38
19 Has any system(s) been disapproved by the
Idaho Division of Environmental Quality? No
If yes, attach full explanation
20 Has the Idaho Division of Environmental Quality
recommended any improvements? No
If yes, attach full explanation
21 Number of Complaints received during year concerning:
Quality of Service 8
High Bills 59
Disconnection 10
22 Number of Customers involuntarily disconnected 72
23 Date customers last received a copy of the Summary
of Rules required by IDAPA 31.21.01.701? July 2011
Attach a copy of the Summary
24 Did significant additions or retirements from the
Plant Accounts occur during the year? No
If yes, attach full explanation
and an updated system map
Rev 3/02 Page 2
Falls Water Company Confidential 4/13/2012
NAME: Falls Water Co., Inc.
REVENUE & EXPENSE DETAIL
For the Year Ended December 31, 2011
ACCT # DESCRIPTION
400 REVENUES
1 460 Unmetered Water Revenue -
2 461.1 Metered Sales - Residential 1,063,201
3 461.2 Metered Sales - Commercial, Industrial 41,778
4 462 Fire Protection Revenue -
5 464 Other Water Sales Revenue 7,632
6 465 Irrigation Sales Revenue -
7 466 Sales for Resale -
8 400 Total Revenue (Add Lines 1 -7) 1,112,611
(also enter result on Page 4, line 1)
9 * DEQ Fees Billed separately to customers Booked to Acct #
10 ** Hookup or Connection Fees Collected 46,600 Booked to Acct
11 ***Commission Approved Surcharges Collected Booked to Acct #
401 OPERATING EXPENSES
12 601.1-6 Labor - Operation & Maintenance 154,166
13 601.7 Labor - Customer Accounts -
14 601.8 Labor - Administrative & General 21,036
15 603 Salaries, Officers & Directors 167,100
16 604 Employee Pensions & Benefits 76,057
17 610 Purchased Water 3,300
18 615-16 Purchased Power & Fuel for Power 119,396
19 618 Chemicals 4,548
20 620.1-6 Materials & Supplies - Operation & Maint. 38,442
21 620.7-8 Materials & Supplies - Administrative & General 72,029
22 631-34 Contract Services - Professional 3,370
23 635 Contract Services - Water Testing 3,428
24 636 Contract Services - Other 17,019
25 641-42 Rentals - Property & Equipment 82,309
26 650 Transportation Expense 37,816
27 656-59 Insurance 27,355
28 660 Advertising 683
29 666 Rate Case Expense (Amortization) -
30 667 Regulatory Comm. Exp. (Other except taxes) -
31 670 Bad Debt Expense 10,921
32 675 Miscellaneous 18,575
33 Total Operating Expenses (Add lines 12 - 32, also enter on Pg 4, line 2) 857,551
Rev 3/02 Page 3
Page 3
271.3
Falls Water Company Confidential 4/13/2012 Page 4
Name: Falls Water Co.. Inc.
INCOME STATEMENT
For Year Ended December 31, 2011
ACCT # DESCRIPTION
I Revenue (From Page 3, line 8) 1,112,611
2 Operating Expenses (From Page 3, line 33) 857,551
3 403 Depreciation Expense 71,682
4 406 Amortization, Utility Plant Aquisition Adj.
5 407 Amortization Exp. - Other
6 408.10 Regulatory Fees (PUC) 2,444
7 408.11 Property Taxes 24,552
8 408.12 Payroll Taxes 31,393
9A 408.13 Other Taxes (list)
9B
9C
9D
10 409.10 Federal Income Taxes
11 409.11 State Income Taxes 20
12 410.10 Provision for Deferred Income Tax - Federal
13 410.11 Provision for Deferred Income Tax - State
14 411 Provision for Deferred Utility Income Tax Credits
15 412 Investment Tax Credits - Utility
16 Total Expenses from operations before interest (add lines 2-15) 987,642
17 413 Income From Utility Plant Leased to Others
18 414 Gains (Losses) From Disposition of Utility Plant (158)
19 Net Operating Income (Add lines 1, 17 &18 less line 16) 124,811
20 415 Revenues, Merchandizing Jobbing and Contract Work
21 416 Expenses, Merchandizing, Jobbing & Contracts
22 419 Interest & Dividend Income 39
23 420 Allowance for Funds used During Construction
24 421 Miscellaneous Non-Utility Income 8,305
25 426 Miscellaneous Non-Utility Expense 19,713
26 408.20 Other Taxes, Non-Utility Operations
27 409-20 Income Taxes, Non-Utility Operations
28 Net Non-Utility Income (Add lines 20,22,23 & 24 less lines 21,25,26, & 27) (11,369)
29 Gross Income (add lines 19 &28) 113,442
30 427.3 Interest Exp. on Long-Term Debt 47,246
31 427.5 Other Interest Charges
32 NET INCOME (Line 29 less lines 30 & 31) (Also Enter on Pg 9, Line 2) 66,196
Rev 3/02 Page 4
Falls Water Company Confidential 4/13/2012 Page 5
Name: Falls Water Co., Inc.
ACCOUNT 101 PLANT IN SERVICE DETAIL
For Year Ended December 31, 2011
Balance Added Removed Balance
Beginning During During End of
nfYir Year Year Year
2,001,089 212,736 2,213,824
488,782 - 488,782
400,431 1,500 401,931
16,693 16,693
417,702 2,290 419,992
26,436 22,118 48,554
906,136 - 906,136
1,003,305 - 18,052 985,253
57,962 1,886 59,849
37,828 22,691 60,519
60,607 77,796 138,403
24,049 2,809 26,858
5,441,019 343,826 18,052 5,766,793
Enter beginning & enci ot year totais on i-'g (,Line 1
SUB
ACCT # DESCRIPTION
1 301 Organization
2 302 Franchises and Consents
3 303 Land & Land Rights
4 304 Structures and Improvements
5 305 Collecting & Impounding Reservoirs
6 306 Lake, River & Other Intakes
7 307 Wells
8 308 Infiltration Galleries & Tunnels
9 309 Supply Mains
10 310 Power Generation Equipment
11 311 Power Pumping Equipment
12 320 Purification Systems
13 330 Distribution Reservoirs & Standpipes
14 331 Trans. & Distrib. Mains & Accessories
15 333 Services
16 334 Meters and Meter Installations
17 335 Hydrants
18 336 Backflow Prevention Devices
19 339 Other Plant & Misc. Equipment
20 340 Office Furniture and Equipment
21 341 Transportation Equipment
22 342 Stores Equipment
23 343 Tools, Shop and Garage Equipment
24 344 Laboratory Equipment
25 345 Power Operated Equipment
26 346 Communications Equipment
27 347 Miscellaneous Equipment
28 348 Other Tangible Property
29 TOTAL PLANT IN SERVICE
(Add lines 1 - 28)
Rev 3/02 Page 5
Falls Water Company Confidential 4/13/2012 Page 6
Name: Falls Water Co.. Inc.
ACCUMULATED DEPRECIATION ACCOUNT 108.1 DETAIL
For Year Ended December 31, 2011
Depreciation Balance Balance Increase
Rate Beginning End of or
of Year Year (Decrease)
38,320 54,982 16,663
77,556 90,734 13,178
10,955 11,789 835
168,532 190,973 22,441
19,788 21,958 2,171
185,474 208,473 22,999
474,781 529,306 54,525
6,657 8,625 1,969
27,525 34,439 6,914
51,415 56,901 5,486
17,471 20,252 2,781
268,900 358,533 89,633
1,347,372 1,586,967 239,595
SUB
ACCT# DESCRIPTION
1 304 Structures and Improvements
2 305 Collecting & Impounding Reservoirs
3 306 Lake, River & Other Intakes
4 307 Wells
5 308 Infiltration Galleries & Tunnels
6 309 Supply Mains
7 310 Power Generation Equipment
8 311 Power Pumping Equipment
9 320 Purification Systems
10 330 Distribution Reservoirs & Standpipes
11 331 Trans. & Distrib. Mains & Accessories
12 333 Services
13 334 Meters and Meter Installations
14 335 Hydrants
15 336 Backflow Prevention Devices
16 339 Other Plant & Misc. Equipment
17 340 Office Furniture and Equipment
18 341 Transportation Equipment
19 342 Stores Equipment
20 343 Tools, Shop and Garage Equipment
21 344 Laboratory Equipment
22 345 Power Operated Equipment
23 346 Communications Equipment
24 347 Miscellaneous Equipment
25 348 Other Tangible Property
26 TOTALS (Add Lines I - 25)
enter beginning & ena OT year totals on vg 1, Line '
Rev 3/02 Page 6
Falls Water Company Confidential 4/13/2012 Page 7
Name: Falls Water Co., Inc.
BALANCE SHEET
ACCT #
For Year Ended
ASSETS
DESCRIPTION
December 31, 2011
Balance
Beginning
of Year
Balance
End of
Year
Increase
or
(Decrease)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
101
102
103
105
114
108.1
108.2
108.3
110.1
110.2
115
123
125
131
135
141
142
145
151
162
173
143
181
183
184
186
Utility Plant in Service (From Pg 5, Line 29) 5,441,019
Utility Plant Leased to Others
Plant Held for Future Use
Construction Work in Progress -
Utility Plant Aquisition Adjustment
Subtotal (Add Lines 1 -5) 5,441,019
Accumulated Depreciation (From Pg6, Line 26) 1,347,372
Accum. Depr. - Utility Plant Lease to Others
Aôcum. Depr. - Property Held for Future Use
Accum. Amort. - Utility Plant in Service
Accum. Amort. - Utility Plant Lease to Others
Accumulated Amortization - Aquisition Adj.
Net Utility Plant (Line 6 less lines 7- 12) 4,093,647
Investment in Subsidiaries
Other Investments
Total Investments (Add lines 14 & 15)
Cash 187,960
Short Term Investments
Accts/Notes Receivable - Customers 79,273
Other Receivables 58,683
Receivables from Associated Companies
Materials & Supplies Inventory
Prepaid Expenses 43,391
Unbilled (Accrued) Utility Revenue
Provision for Uncollectable Accounts 1,300
Total Current (Add lines 17 -24 less line 25) 368,006
Unamortized Debt Discount & Expense
Preliminary Survey & Investigation Charges
Deferred Rate Case Expenses
Other Deferred Charges
Total Assets (Add lines 13,16 & 26 -30) 4,461,653
5,766,793 325,774
834,878 834,878
6,601,672 1,160,653
1,586,967 239,595
5,014,704 921,058
90,053 (97,907)
79,050 (222)
58,183 (499)
59,809 16,418
1,300 -
285,796 (82,210)
5,300,500 838,847
Rev 3/02 Page 7
Balance Balance Increase
Beginning End of or
of Year Year (Decrease)
25,000 25,000 -
- 999428.51 999,429
149,239 215,435 66,196
174,239 1,239,864 1,065,625
58,610 - (58,610)
1,292,512 1,233,283 (59,229)
57,587 57,587 -
10,508 66,363 55,855
67,206 59,229 (7,977)
- 2553 2,553
3,498,922 3,545,522 46,600
(697,930) (903,899) (205,969)
4,287,414 4,060,637 (226,778)
4,461,653 5,300,500 838,847
Falls Water Company Confidential 4/13/2012 Page 8
Name: Falls Water Co., Inc.
BALANCE SHEET
For Year Ended December 31, 2011
LIABILITIES & CAPITAL
ACCT # DESCRIPTION
1 201-3 Common Stock
2 204-6 Preferred Stock
3 207-13 Miscellaneous Capital Accounts
4 214 Appropriated Retained Earnings
5 215 Unappropriated Retained Earnings
6 216 Reacquired Capital Stock
7 218 Proprietary Capital
8 Total Equity Capital (Add Lines 1-5+7 less line 6)
9 221-2 Bonds
10 223 Advances from Associated Companies
11 224 Other Long - Term Debt
12 231 Accounts Payable
13 232 Notes Payable
14 233 Accounts Payable - Associated Companies
15 235 Customer Deposits (Refundable)
16 236.11 Accrued Other Taxes Payable
17 236.12 Accrued Income Taxes Payable
18 236.2 Accrued Taxes - Non-Utility
19 237-40 Accrued Debt, Interest & Dividends Payable
20 241 Misc. Current & Accrued Liabilities
21 251 Unamortized Debt Premium
22 252 Advances for Construction
23 253 Other Deferred Liabilities
24 255.1 Accumulated Investment Tax Credits - Utility
25 255.2 Accum. Investment Tax Credits - Non-Utility
26 261-5 Operating Reserves
27 271 Contributions in Aid of Construction
28 272 Accum. Amort. of Contrib. in Aid of Const. **
29 281-3 Accumulated Deferred Income Taxes
30 Total Liabilities (Add lines 9 - 29
31 TOTAL LIAB & CAPITAL ( Add lines 8 & 30)
** Only if Commission Approved
Rev 3/02 Page 8
Falls Water Company Confidential 4/13/2012 Page 9
Name: Falls Water Co. Inc.
STATEMENT OF RETAINED EARNINGS
For Year Ended December 31, 2011
I Retained Earnings Balance @ Beginning of Year
2 Amount Added from Current Year Income (From Pg 4, Line 32)
3 Other Credits to Account
4 Dividends Paid or Appropriated
5 Other Distributions of Retained Earnings
6 Retained Earnings Balance © End of Year
149,239
66,196
0
215,435
CAPITAL STOCK DETAIL
No. Shares
7

Description (Class, Par Value etc.)
COMMON
No. Shares Dividends
DETAIL OF LONG-TERM DEBT
Interest Year-end Interest Interest

8 Descriptior Rate Balance Paid Accrued

DEQ State Loan Fund - DW-99 3.25% 191,499 6.911 I

DEQ State Loan Fund - Well #9 3.25% 1.041.784
Rev 3/02 Page 9
Falls Water Company Confidential 4/13/2012 Page 10
Name: Falls Water Co.. Inc.
SYSTEM ENGINEERING DATA
For Year Ended December 31, 2011
1 Provide an updated system map if significant changes have been made to the system during the year.
2 Water Supply: Type of Water
Treatment: Supply
Rated (None, Chlorine Annual Source
Capacity Fluoride Production (Well, Spring,
Pumo Desiantion or [oration (cinm' Filter tr- (000's Gal.) Surface WtrI
Well #1 750 SAND SEP 134,074 WELL
Well #2 400 CHLORINATION 175,758 WELL
Well #4 1500 SAND SEP/CHLRN 149,364 WELL
Well #5 750 SAND SEP/CHLRN 261,454 WELL
Well #6 (Pump 6) 600 17,919 WELL
Pump #7 (In Well #6) 600 88,131 WELL
Well #8 1500 CHLORINATION 53,611 WELL
Well #9 3000 CHLORINATION 188,070 WELL
3 System Storage:
Total Usable Type of
Capacity Capacity Reservoir Construction
000's 000's (Elevated, Pres- (Wood, Steel
(Duplicate form and attach if necessary. Asterisk facilities added this year.)
Rev 3/02 Page 10

Falls Water Company Confidential 4/13/2012 Page 11
Name: Falls Water Co., Inc.
SYSTEM ENGINEERING DATA
(continued)
For Year Ended December 31, 2011
4 Pump information for ALL system pumps, including wells and boosters.
Rated Discharge Energy

Designation or Location Horse Capacity Pressure Used
& Tvoe of Pumn** Power (aom' (osi) This Year
Well #2, Turbine Pump #2 40 400 65
Well #4, Turbine Pump #4 150 1500 65
Well #6, Submersible Pump #6 75 600 65
Pump #7, Submersible Pump #7 75 600 65
SUBTOTAL OF ABOVE The Above are all on one Power Meter Totaling 509,440
Well #1, VFD Turbine Pump #1 75 750 65 268,799
Well #5, Turbine Pump #5 75 750 65 375,298
Well #8, Turbine Pump #8 150 1500 65 93,760
Well #9, VFD Turbine Pump #9 400 3000 65 279,640
Submit pump curves unless previously provided or unavailable. Asterisk facilities added this year.
Attach additional sheets if inadequate space is available on this page.
5 If Wells are metered:
What was the total amount pumped this year? 1,077,341,667
What was the total amount pumped during peak month? 247,537,800
What was the total amount pumped on the peak day? 8,849,700
6 If customers are metered, what was the total amount sold in peak month? 196,906,000
7 Was your system designed to supply fire flows? Yes
If Yes: What is current system rating? 4
8 How many times were meters read this year? 7
During which months? April, May, June, July, August, September, October for Residential.
Commercial and Multi-family Residential are read year round.
9 How many additional customers could be served with no system improvements
except a service line and meter? 600
How many of those potential additions are vacant lots? 600
10 Are backbone plant additions anticipated during the coming year? No
If Yes, attach an explanation of projects and anticipated costs
11 In what year do you anticipate that the system capacity (supply, storage or distribution)
will have to be expanded? 2015
Rev 3/02 Page 11
2 Metered:
2A Residential
2B Commercial
2C Industrial
3 Flat Rate:
3A Residential
3B Commercial
3C Industrial
4 Private Fire Protection
5 Public Fire Protection
6 Street Sprinkling
7 Municipal, Other
8 Other Water Utilities
TOTALS (Add lines 2 through 8)
Falls Water Company Confidential 4/13/2012 Page 12

Name: Falls Water Co.. Inc.
SYSTEM ENGINEERING DATA
(continued)
For Year Ended December 31, 2011
FEET OF MAINS
In Use Installed Abandoned In Use
1 Pipe Beginning During During End of

Size Of Year Year Year Year
2" 1,238.85 - - 1,238.85
4" 1,879.42 - - 1,879.42
6" 220,181.26 - - 220,181.26
8" 71,550.02 - - 71,550.02
10" 29,489.35 - - 29,489.35
12" 21,849.43 - - 21,849.43
CUSTOMER STATISTICS
Number of Customers Thousands of
This Last This
Year Year Year
Gallons Sold
Last
Year
3,756 3,669 903,321 864,670
76 84 40,169 51,274
- - N/A N/A
372 372 N/A N/A
4,204 4,125 943,490 915,944
Rev 3/02 Page 12
Falls Water Company Confidential 4/13/2012 Page 13
CERTIFICATE
State of Idaho
ss
County of Bonneville
WE, the undersigned Brent Johnson, President, and K. Scott Bruce, General Manager, of the
of the Falls Water Company, Inc. utility, on our oath do severally say that the foregoing report has
been prepared under our direction, from the original books, papers and records of said utility; that
we have carefully examined same, and declare the same to be a correct statement of the business
and affairs of said utility for the period covered by the report in respect to each and every matter and
thing therin set forth, to the best of our knowledge, information and belief.
]2 :i~effic~er)~~
cJ
K 5::~~ ~Z?~ ~ (Officer in Charge of Accounts)
Subscribed and Sworn to Before Me
0 '01P Ikk
this JM dayof ijall i , / OTARP \
/ 1
N 6T.9 RYPUBLIC %• \.
MY COMMISSION EXPIRES
July 6, 2015
My Commission Expires BONDED TIIRU NOTARY PUBLIC UNDERWRITERS
gdlclexcel/jnelson/anulrpts/wtrannualrpt
Rev 3/02 Page 13