20230920Comments - Attachments 1-4.pdf

Attachment 1
Summary Sheet
Company Staff Staff
No.Income Total Adjustments Total
1 Revenue 5,158 - 5,158
2 Total Operating Revenue 5,158 - 5,158
Expenses
1 Labor-Operation & Maintenance -
2 Labor-Customer Accounts -
3 Labor-Administrative & General -
4 Salaries-Officers & Directors -
5 Employee Pensions & Benefits -
6 Purchased Water -
7 Purchased Power & Fuel for Power 788 788
8 Chemicals -
9 Materials & Supplies-Operation & Maintenance -
10 Materials & Supplies-Admin & General -
11 Contract Services-Professional 5,819 5,819
12 Contract Services-Water Testing -
13 Rentals-Property & Equipment -
14 Transportation Expense -
15 Insurance -
16 Advertising -
17 Rate Case Expense (Amortization)-
18 Regulatory Comm. Exp. (Other Except Taxes)-
19 Bad Debt Expense -
20 Miscellaneous Expenses 200 200
21 Total Operating Expenses 6,808 - 6,808
3 Depreciation Expense -
4 Amortization, Utility Plant Acquisition Adj.-
5 Amortization Exp.-Other -
6 Regulatory Fees (PUC)50 50
7 Property Taxes -
8 Payroll Taxes -
9 Other Taxes (list) DEQ Fees -
10 Federal Income Taxes -
11 State Income Taxes 20 20
12 Provision for Deferred Income Tax-Federal -
13 Provision for Deferred Income Tax-State -
14 Provision for Deferred Utility Income Tax Credits -
15 Investment Tax Credits-Utility -
16 Total Expenses From Operations Before Interest 6,878 - 6,878
17 Income from Utility Plant Leases to Others
18 Gains (Losses) from Disposition of Utility Plant
19 Net Operating Income (1,720) - (1,720)
Rate Base
22 Total Plant in Service (Ex 1, Sch A, line 29)55,000 55,000
23 Accumulated Depreciation (Ex 1, Sch B, line 26) 26,327 26,327
24 Net Plant in Service (Line 1 less line 2)28,673 28,673
25 Add Utility Plant Acquisition Adjustment**-
(Annual Report page 7, line 5)-
26 Add Materials & Supplies Inventories -
(Annual Report page 7, line 22)-
27 Less Accum Amortization Util Plant Acq Adj**-
(Annual Report page 7, line 12)-
28 Less Customer Advances for Construction -
(Annual Report page 8, line 22)-
29 Less Contributions in Aid of Construction (55,000) (55,000)
(Annual Report page 8, line 27)26,327 26,327
30 Add Working Capital (1/8 Operating Expenses)-
(Exhibit No. 2, Sch B, line 22/8)851 851
31 Add Deferred Charges (If any, attach detail)-
(Annual Report page 7, lines 29 & 30)-
32 Total Rate Base 851 - 851
Cost of Captial
33 ROE 12.00%11.00%
Attachment 1
KHW-W-23-01
Staff Comments
9/20/23
Attachment 2
Revenue Requirement
Company Staff
Proposed Proposed
No. Test Year ended: 12/31/2022 Revenue Revenue
1 Rate Base 851 851
2 Required Rate of Return 12.00% 11.00%
3 Income Required 102 94
4 Income Realized (1,720) (1,720)
5 Income Deficiency (Line 3 less Line 4)1,822 1,814
6 Net Operating Income Deficiency 1,822$ 1,814$
7 Gross Up Factor 1.346447 1.346447
8 Total Incremental Revenue Requirement 2,454$ 2,442$
9 Revenues at Existing Rates 5,158$ 5,158$
10 Total Revenue Requirement 7,611$ 7,600$
11 Dollar Increase Required 2,454$ 2,442$
12 Percent Increase Required 47.57% 47.35%
Net Gross Multiplier
13 Total Gross Revenues 1.000000 1.000000
14 Less Regulatory Fees (percentage)0.001995 0.001995
-
15 Net Revenue 0.998005 0.998005
16 State Income Tax Rate 5.80% 0.057884 0.057884
-
17 Federal Income Tax Base 0.940121 0.940121
-
18 Federal Income Tax Rate 21.00% 0.197425 0.197425
-
19 Net Operating Revenue 0.742695 0.742695
-
20 Net Income to Gross Revenue Multiplier 1.346447 1.346447
-
21 Composite Fed and State Tax Rate 25.58% 25.58%
Attachment 2
KHW-W-23-01
Staff Comments
9/20/23
Attachment 3
Company Staff
1 6,808$ 6,808$
2 Taxes 20$ 20$
3 Deprecation -$ -$
4 628$ 628$
5 IPUC Fee 50$ 50$
6 7,506$ 7,506$
7 Ratebase 851$ 851$
8 Return 0$ 0$
9 102$ 94$
10 7,608$ 7,600$
Revenue 7,611 7,600
Prood (3) -
Revenue Proof
Difference Due to Rounding Error
Attachment 3
KHW-W-23-01
Staff Comments
9/20/23
Attachment 4
Rate Design
No.
Number of
Customers
Current
Customer
Rate
Current
Company
Revenue
Proposed
Rate
Company
Proposed
Revenue
Company
Proposed
Increase
Company
Proposed
Rate Staff
Proposed
Revenue
Staff
Proposed
Increase
Staff
1 Residential 11 38.50$ 5,082.00$ 57.65$ 7,609.80$ 49.74% 57.58$ 7,600.00$ 49.55%
2 Gallons
Charge 3.10$ 75.50$ -$ -$ 19.15$ -$ -$ 19.08$
3 Total 11 5,157.50$ 7,609.80$ 7,600.00$
Target Target
Revenue 7,611 Revenue 7,600
Attachment 4
KHW-W-23-01
Staff Comments
9/20/23