Electronic Service Only
Sheila Kae Williams, Esq.
Counsel, Deliver Water Association
Garden Towers, Suite 3 14
202 Tunneltoii Street
Kingwood, WV 26537
RE:
Case No. 13-1421-W-19A
Deliver Water Association
Dear Ms. Williams:
Staff Memorandum issued today was served via einail on the above-listed parties. If you wish to respolid to
Staff Memorandum, you may do so in writing, within 10 days, unless directed otherwise, of this date. YOUwill llot
receive a copy of the Staff Meiiioraiiduin by regular mail.
Your failure to respond in writing to the utility’s answer, S t a f f s recoiniiieiidatioiis, or other doculnellts lnay
result in a decision in your case based 011 your original filing and tlie other documents in the case file, without further
hearing or notice.
Wlieii you provide an einail address you will automatically receive electronic docket 1iotificatioiis as
docLllneiits are filed in this proceeding. The einail notifications allow recipients to view a document witliill a11 hour
froin tlie time the filing is processed.
If you have not done so, you are requested to file the Electronic Mail Agreement, previously mail to you,
wliicji allows the Coininissioii to serve all orders issued in this matter via electronic docket notificatioii.
Please note - the Public Service Commission does not accept electronic filings. Therefore, if you wish to
respoiid to the Staff Memoraiidum you must do so in writing submitted to the Executive Secretary’s Office at t11e
above address.
Sincerely,
Iiigrid FFrell, Director
Executive Secretary Division
IFkg
Attached - Memo
FINAL JOINT STAFF MEMORANDUM
TO:
INGRID FERRELL
Executive Secretary
DATE: December 30,2013
In summary, Staff is recommending an increase in rates so as to generate
additional revenues of $5,305 annually or an 8.71% increase over revenue under the
Denver Water Association's (Association's) current rates. While the Association has
provided more notice than is generally required at this stage of a Rule 19A rate
proceeding, the notice provided failed to provide a specific date by when protest and/or
comments must be filed with the Commission. However, the notice indicates
protests/comments must be filed within fifty (50) days of the filing date which was
provided in the notice. Since customers should be able to figure out when the deadline of
when protests and/or comments need to be filed by adding fifty days to the filing date, the
Staff Attorney finds that the Association has substantially complied with the notice
provisions and therefore does not recommend that additional notice be required,
However, if the Administrative Law Judge disagrees, then the Association should follow
the Administrative Law Judge's direction in his order.
On September 19, 2013, the Association filed a Tariff Rule 19A application to
increase its water rates and charges. The Association is requesting a 10% increase in its
water rates as well as increases in its reconnect fees, tap fees and security deposit. The
Association stated it has not had a rate increase since 2007. The Association recently has
experienced issues with its tanks leaking which requires the Association to use water
buffalos to secure water for its customers. The Associations has been seeking grants to
make repairs to its tanks, but as of the date of its filing had not been successful in
obtaining a grant.
On October 15, 2013, Staff filed an Initial Joint Staff Memorandum in which Staff
concluded that the Association meets the requirements for filing for Rule 19A review.
Staff recommended that the case be referred to the Division of Administrative Law
Judges.
By an order entered on October 29,2013, the Commission referred this case to the
Division of Administrative Law Judges. The Commission directed Staff to file its report
on or before December 30, 2013, and directed the Administrative Law Judge to render a
decision on or before May 19,20 14.
Case No. 13-1421-W-19A
December 30, 2013
Page 2
On December 6, 2013, the Association filed evidence that it provided notice of the
case filing. In addition to posting notice the Association published notice of its requested
rates on September 18 and 25, 2013 in The Preston County Journal. The Association
used Tariff Form No. 8-A, that is associated with general Rule 42 rate proceedings, rather
than Tariff Form No. 6-B , which is associated with Rule 19A rate proceedings. The
Association’s notice provides information on how customers may protest andlor file
comments with the Commission regarding the rate request. However, the Association did
not put in a deadline of when the protest and/or comments needed to be filed, but merely
stated any protests/comments needed to be filed within fifty (50) days of the filing date.
The Staff Attorney will further discuss the notice provided below.
Staffs Final Recommendation
The Utilities Division filed two reports which are attached to this memorandum.
First, in the attached Staff Rule 42 Exhibit, Troy Eggleton, Utilities Analyst I1
provided a summary of what the Utilities Division’s examinations of the Association’s
books and records for the year ending December 3 1, 2012, revealed.
Second, in the attached Revenue Requirements Staff Recommended Rates Report,
John Harper, Utilities Analyst, used the Staff Rule 42 to prepare the revenue requirement
and Staff recommended rates for the Association. Mr. Harper explained that the Staff
recommended rates would provide the following for the Association:
Staff Recommended Rates generate additional
revenues of $5,305 annually or an 8.71% increase in revenue
generated under the Association’s existing rates. As shown on
Exhibit 1, this level of revenue would be sufficient to cover
the Association’s operating cash requirements of $65,730 and
provide a surplus of $489 for the internal funding of plant
additions. The surplus covers the Association’s five-year
average of net plant additions of $473.
Mr. Harper provided a comparison of the Association’s current rates, the
Association’s proposed rates, and Staff Recommended Rates with his report. Mr. Harper
noted that the Association’s 30B surcharge will be $7.65, which is a decrease of $0.3 1 or
3.89% under Staff Recommended Rates. The decrease in the surcharge as well as an
increase in the first 3,000 gallons used per month block and increase in minimum bills
results from an effort to normalize the rate effects of the Association’s prior $3.00
surcharge or increase per thousand gallons in purchased water costs from the T o w n of
Tunnelton in Case No. 07-0721-W-30B (which lasted from 2007 to 201 1). MI. Harper
Case No. 13-1421-W-19A
December 30,2013
Page 3
also calculated a leak adjustment rate. Mr. Harper recommended that the rates and
charges shown in Exhibit 4 of his memorandum be approved for the Association.
The Staff Attorney notes that normally at this stage of a Rule 19A rate proceeding
the Administrative Law Judge directs the utility to provide notice of the Staff
recommended rates in an order which includes the exact notice that is provided.
Thereafter, the utility provides the required notice and after providing such notice files a
completed Tariff Form No. 6-B. In this case the Association has provided notice that it is
seeking $6,323.89 annually in additional revenue or a 10% increase in its existing rates
(Staffs calculation of what the Association is seeking based on its analysis of the
requested rates and revenue indicates the Association is requesting additional annual
revenue of $9.484, or a 15.57% increase from its current rates). The Association also
showed the impact of the requested increase on customer classes in its notice. Since
Staffs recommended rates, which would generate additional revenues of $5,305 annually
or an 8.71% increase in revenue generated under existing rates, is lower than what the
Association stated in its notice, there would be no need for the Association to provide
additional notice except for one issue: The Association failed to insert in its notice that
was published the exact date by when its customers need to file protests and/or comments
in this case. However, the notice indicates protests/comments must be filed within fifty
(50) days of the filing date which was provided in the notice. Since the Association's
would be able to figure when they needed to file protests/comments, the Staff Attorney
finds that the Association has substantially complied with the notice provisions and
therefore does not recommend that additional notice be required. However, if the
Administrative Law Judge disagrees, then the Association should follow the
Administrative Law Judge's direction in his order. The Staff Attorney notes that as of the
date of this memorandum no protests/comments have been filed in the case.
Based on the above, the Staff Attorney recommends that the Association be given
ten (10) days to file a written objection to Staffs recommendations summarized above.
If no timely objection is filed, then Staff recommends that the Administrative Law Judge
issue a Recommended Decision approving Staffs recommendations.
LJMcm
Attachment
H:\LANDERSON\wpdocs\13-142
1 (denver water assoc. 19A)\final memo.docx
RULE 42 EXHIBIT
PREPARED BY
TROY EGGLETON
UTILITIES ANALYST I1
UTILITIES DIVISION
Becsmber 27,2013
201 Brooks St~ect,P. 0.Box 812, Charleston, WV 25323
DENVER WATER ASSOCIATION
CASE NO. 13-1421-W-19A
TABLE OF CONTENTS
PAGE
NUMBER
STATEMENT
Letter of Transmittal
A
Statement of Net Income
Schedule 1 - Detail of Operating Revenues
Schedule 2 Detail of Operation and Maintenance Expenses
Schedule 3 - Depreciation and Amortization
Schedule 4 - Taxes Other Than Income Taxes
Schedule 6 Other Income
Schedule 7 - Other Income Deductions
-
B
Average Rate Base
Schedule 1- Utility Plant In Service
Schedule 2 Plant Held for Future Use
Schedule 3 - Unclassified Plant in Service
Schedule 4 - Cnstrn Work in Progress - Cmpltd and in Service
Schedule 5 - Materials and Supplies
Schedule 6 - Prepayments
Schedule 7 - Working Cash Allowance
Schedule 8 - Accumulated Depreciation
Schedule 9 - Retirement Work in Progress
Schedule 10 Contribution in Aid of Construction
Schedule 11 - Customer Advances for Construction
Schedule 12 Customer Deposits
8
9
10
11
12
13
14
15
16
17
18
19
20
C
Detail of Debt Capital
21
D
Customer's Bill Analysis
Per Books
Going Level
Proforma
Schedule 1 - Rate Comparison
Schedule 2 - Current Tariff
Schedule 3 Proposed Tariff
22-23
24-25
26-27
28
29-30
31-32
F
Comparative Balance Sheet
Statement F2 Cash Flow Analysis
33-34
35-36
G
Detail of Adjustments
37-39
-
-
-
-
-
Pu66ic Service Commission
Of West Virginia
201 &ook+sStreet, P, 0. 6'0x812
Charleston, w e s t Virginia 25323
Phone:
FAX:
(304)
(304)
340-0300
340-0325
December 27,20 13
Commissioners
Public Service Commission
201 Brooks Street
Charleston, WV 25301
Re:
Denver Water Association
Case No. 13-1421-W-19A
Dear Commissioners:
The Utilities Division is submitting this report outlining the results of its
examination of the books and records of the Denver Water Association (Association) for
the year ended December 31, 2012. The purpose of this examination was to evaluate
revenue, expense and debt accounts in order to determine going level and to prepare
revenue requirements. Except to the extent necessary to develop the recommended rates,
the scope of the examination performed did not include confirmation of current assets
and liability balances. Due to these limitations, and the scope of the examination, this
report should not be confbsed with, nor substituted, for an audit performed by
independent auditors.
On September 19, 2013, the Association filed a Tariff Rule 19(A)
application to increase its water rates and charges. The Association requested a 10%
increase to its existing rates and charges and provided a proposed tariff setting forth its
increased rates and charges. The Association's last water rate increase was approved in
Case No. 07-0721-W-30B, effective December 7,2007.
The Association currently serves approximately 138 residential and
commercial water customers in Preston County, West Virginia. The Association has no
resale customers. The Association purchases its potable water from the Town of
Tunnelton, base on a resale rate of $5.41 per M gallons, as stated in the Town's current
tariff.
Commissioners
Case No. 13-1421-W-19A
December 27,20 13
Page: 2
The Association’s oversight is provided by its three Board Members. The
Association has no full time employees, but contracts with four individuals on a limited,
part time basis. One contractor handles the office duties with three contractors handling
field work, including, but not limited to maintenance, meter reading and water sample
testing. No additional employee benefits are provided by the Association.
The Association has no long term or short term debt other than normal
monthly expenses.
The District has the following bank accounts with balances as follows:
November 30,2013
$
Operating Account
General Reserve Account
3,681
1,759
Staff prepared customer bill analyses utilizing the twelve months, January
2012 through December 2012. The Per Books, Going Level and Proforma bill analyses
are shown on Statement D, Sheets 1 thru 6. Going Level commercial bill analysis prices
sales in accordance with the approved tariff. Proforma bill analyses for residential and
commercial sales are priced in accordance to the proposed tariff provided by the District.
Staffs bill analysis calculations for total revenues for the Association’s residential and
commercial fell within the allowable 2% for verification purposes.
Staffs report reflects Accounting, Going Level and Proforma Adjustments
as detailed on Statement G. The Accounting Adjustment reclassifies forfeited discount to
the proper account incurred during the test year. Staffs Going Level Adjustments
include revenue, forfeited discounts, bad debt, salaries and wages and property insurance.
Additionally, Staff has adjusted for depreciation. Proforma adjustments include revenue,
forfeited discounts and bad debt expense.
Staffs Cash Flow Analysis, Statement F2, Sheet 1 reveals the
Association’s Going Level revenues and other income are $60,9 14, the Association’s
operation and maintenance expenses and other taxes are $65,703, while the Association
has no debt service. Thus, at Going Level there is a cash flow deficit of $4,789.
Shown on Statement F2, Sheet 2 is an analysis of the Association’s 5-year
average annual plant additions less any acquired debt and contributions in a i d of
construction. The average additions have been adjusted by a construction cost index
Commissioners
Case No. 13-1421-W-19A
December 27,2013
Page: 3
factor to account for cost increases. For the five years of 2008 thru 2012, the
Association’s average of net plant additions was $473.
Revenue Requirements and Staff Recommended Rates are being addressed
and presented under a separate report. Staff would like to thank the Association’s Board
Members and office staff for their courteous and professional assistance during the
examination of the Association’s books and records.
Respectfully submitted,
Troy $gleton, Utilities Analyst I1
Utilities Division
TE:ls
Attachments
DENVER WATER ASSOCIATION
STATEMENT OF NET INCOME
YEAR ENDED DECEMBER 31,2012
Statement A
Reference
Statement A
Per Books
(1)
s
Accoun Ling
Adjustments
(2)
Per Books
Adjusted
(31
s
$
Going Level
Adjustments
Going Level
(4)
(5)
Pmforrnn
Adjustments
s
%
Proforma
t7)
s
s
UTILITY OPERATING INCOME
Operating Revenues
Schedule 1
61,085
61,085
(1 76)
60,909
9,483
70,393
Operating Revenue Deductions
Operation and Maintenance
Depreciation and Amortization
Taxes Other Than Income Taxes
Schedule 2
Schedule 3
Schedule 4
63,975
2,453
184
63,975
2,453
184
1,544
(1,322)
65,519
1.131
184
47
65,567
1,131
184
Total Operating Revenue Deductions
66,612
66,612
222
66,834
47
66,881
Net Operating income
(5,527)
(5,527)
(397)
(5,924)
9,436
3,5 1 1
Other Income
Schedule 6
Other Income Deductions
Schedule 7
NET MCOhQE
5
5
( 5,5221
-
0
5,522
5
0
397
(5,9191
5
9,436
3,516
DEM’ER WATER ASSOCIATION
DETAIL OF OPERATING REVENUE
YEAR ENDED DECEMBER 31,2012
Account
Number
Statement A
Schedule 1
Per Books
Accounting
Adjustments
Per Books
Adjusted
Going Level
Adjustments
Going Level
Proforma
Adjustments
Proforma
(1)
(2)
(3)
(4)
(3
(6)
(7)
$
$
s
s
s
s
5
Sales of Water
460 Unmetered Water Revenue
Total Uumetered Sales
461.0 Metered Sales
461.1 Meter Sales to Residential Customers
461.2 Meter Sales to Commercial Customers
461.3 Meter Sales to Industrial Customers
461.4 Meter Sales to Public Authorities
Total Metered Revenue
47,623
12,182
47,623
12,182
(172)
59,805
59,805
(172)
59,633
9,294
68,927
59,805
59,805
(172)
59,633
9,294
68.927
(2)
47,623
12,010
7,898
1,396
(8)
(8)
52,52 1
13,406
462 Fire Protection Revenue
462.1 Public Fire Proctection
462.2 Private Fire Proctection
Total Fire Protection
464
466
O t h e r Sales to Public Authorities
Sales for Resale
Totd Sales of Water
Other Operating Revenues
469
470
471
472
473
474
N
Guaranteed Revenues
Forfeited Discounts
Miscellaneous Service Revenues
Rents from Water Property
Iuterdeptmeutal Rents
Other Water Revenues
1.220
(I)
1,220
(4)
(3)
1,216
190
(9)
1,406
Tohl O t h e r Operating Revenues
1,280
1,280
(4)
1,276
190
1,466
Total Water Operating Revenues
6 1,085
61,085
(176)
60,909
9,483
70,393
DENVER WATER ASSOCIATION
DETAIL OF OPERATION AND MAINTENANCE EXPENSES
YEAR ENDED DECEMBER 31,2012
Account
Number
Statement A
Schedule 2
Per Books
Accounting
Adjustments
Per Books
Adjusted
Going Level
Adjustmenb
Goinpl Level
Proforma
Adjustments
Pruforma
(1)
(2)
(3)
(4)
(5)
(6)
(71
s
$
s
s
s
s
s
SOLIRCE OF SUPPLY AND PUMPING EXPENSES
Oneration
Salaries and Wages - Employees
Salaries and Wages - Officers, Directors, etc
Employee Pensions & Benefits
Purchased Water
Purchased Power
Fuel for Power Production
Chemicals
620.1 Mafierials aud Supplies
Contractual Services
631.1-636.1
601.1
603.1
604.1
610.1
615.1
616.1
618.1
Tohl Source of Supply and Pumping Expenses
32,971
598
32,971
598
32.97 I
598
32,971
598
5,550
1,748
3,550
1,748
3.550
1,748
3.550
1,748
38,867
38,867
38,867
38,867
-
CUSTOMER ACCOUNTS EXPENSES
670.7
675.7
Oneradon
Uucollectiblcr Expense
llpixCllaneous Expense
304
Tom1 Customer Accoune Expenses
304
(4)
304
47
304
47
(IO)
352
352
ADMINISTRATIVE AND GENERAL EXPENSES
601.8
603.8
604.8
615.8
616.8
620.8
631.8-636.8
641.8
642.8
650.8
656.8-659.8
666.8
667.8
675.8
Oneration
Salaries and Wages - Employees
Salaries and Wages - Officers, Directors, etc
Employee Pensions a Benefits
Purchased Poner
Fuel for Power Production
Materials and Suppties
Conhachial Services
Reoral of BuildinglReal Property
Rents
Transportation Expenses
Insurance
Reg. Commission Exp. - Amort. Of Rate Case Exp.
Regulatory Commission Expense -Other
610
12.820
610
6,630
6,630
6.630
250
1,825
2.058
250
1,825
2,058
1,825
2,698
250
1.825
2,698
1,515
1,515
Torn1 Administratiw and General Expenses
25,I08
25,108
1,240
26,348
Total Operation and Mainreuanoe Expenses
63,975
63,975
1,544
65,519
hbcellcellaneows Expenses
12,220
610
12,220
610
6.630
250
600
640
(5)
(6)
12.820
1,515
26,348
47
65,567
0 E W E R WATER ASSOCZATION
DEPRECIATION A N D AI\lQRTEZAT!OW
YEAR ENDED DECEMBER 31,2812
Statement A
Schedule 3
ArcrPunt
Number
403.0
404.0
Accounting
Depreciation
Amortization
T o t d Depreciation and A m ~ t - t h t b n
P
Per m
k
s
7353
2,4553
(1322)
1,131
DENSER WATER ASSUCIATION
Statement A
TAXES OTHER THAN INCOME TMES
Schedule 4
YEAR ENDED DECERLBER 31,2012
Aceou11t
Accounting
Per b o k s
Proforma
Going Level
Number
s
408.
408.2
408.3
Utility Regulatory Assessment Fees
S
184
181
I84
i8a
184
184
I84
I84
F.L.C.A.
SUTA
Total Taxes Other Than Income Taxes
Statement A
Schdule 6
Total Other Income
5
5
5
5
5
5
DENVER WATER ASSOCIATION
OTHER INCOME DEDUCTIONS
YEAR ENDED DECEMBER 31,2012
Account
Number
427.3
427.4
Statement A
Schedule 7
Per Books
Interest Expense
Interest on Customer Deposits
Total Other Income Deductions
Accounting
Adjustments
Per Books
Adjusted
Going- Level
Adjustments
Going Level
DENVER WATER ASSOCIATION
AVERAGE RATE BASE
YEAR ENDED DECEMBER 31,2012
Statement B
Reference
Statement B
Per Books
(1)
lltility Plant in Service
Utility Plant Held for Future Use
llnclassified Plant in Service
Construction Work in Progress - Completed and in
Service
Schedule 1
Schedule 2
Schedule 3
Adjustments
(2)
Per Rooks
Adjusted
Going Level
Adjustments
Going Level
(3)
(4)
(5)
117,155
117,155
117,155
117,155
117,155
117,155
103,244
103,244
103,244
62,972
62,972
62,972
Total
166,216
166,216
166,2 I6
Net Investment in Utility Plant
(49,061)
(49,061)
(49,061)
Schedule 4
Total
Less:
Accumulated Provision for Depreciation
Retirement Work in Progress
Contributions in Aid of Construction
Customer Advances for Construction
Schedule 8
Schedule 9
Schedule 10
Schedule 11
Working Capital Allowance
Materials and Supplies
Prepaymen ts
Working Cash Allowance
Schedule 5
Schedule 6
Schedule 7
539
539
539
Customer Deposits
Schedule 12
350
350
350
(48,872)
(48,872)
(48,872)
Total Average Rate Base
DENVER WATER ASSOCIATION
WATER PLANT IN SERVICE
YEAR ENDED DECEMBER 31,2012
Statement B
Schedule 1
Balance
Beginning
ofYear
Account
Number
(1)
Additions
(2)
s
5
Retirements
(3)
$
Balance
End of
Yew
Average
Balance
(4)
(5)
$
$
Intangible Plant
301.1
Organization
302.I
Franchises
339.1
Other Plant and Miscellaneous Equipment
Total Intangible Plant
303.4
304.2
305.2
306.2
307.2
308.2
309.2
310.2
311.2
339.2
Source of Supply & Pumping Plant
Lsnd and Lund Rights
Struetuiw a n d Improvements
Collecting and Impouding Reservoirs
Lake, River and Other Intakes
Wells & Springs
Infiltration Galleries and Tunnels
Supply Mains
Power Generation Equipment
Dumping Equipment
Other Plant and Miscellaneous Equipment
Total Source of Supply and Pumping Plant
303.3
304.3
311.3
320.3
339.3
Water Treatment Plant
Land and Land Rights
Structures a n d Improvements
Pumping Equipment
Water Treatment Equipment
Other Plant and Miscellaneous Equipment
Total W a t e r Treatment Plant
303.4
304.4
311.4
330.4
33 I .4
333.4
334.4
335.4
336.4
339.4
Transmission and Distribution Plant
Land and Land Rights
Structures und Improvements
Pumping Equipment
Distribution k3eNOirS and Standpipes
Transmission and Distribution Mains
Services
Meters and Meter Installations
Hytlran ts
Backflow Prevention Devices
Other Plant and Miscellaneous Equipment
Total Trans. and Distribution Plunt
303.5
304.5
340.5
341.5
342.5
343.5
344.5
345.5
346.5
347.5
348.5
General Plant
Land and Land Rights
Structures and Improvements
Office Furniture and Equipment
Transportation Equipment
Stores Equipment
Tools, Shop and Garage Equipment
Laboratory Equipment
Power Operated Equipment
Communication Equipment
Misc+~neous Equipment
Other Tangible Plant
Total General Plant
62
4,971
62
4-97 I
4,971
5,033
5,033
5,033
38,143
45,252
3.699
10.731
12,099
38,143
45,252
3,699
10,131
12,099
38,143
45.252
3,699
10.731
12.099
109,924
109.924
109,924
62
1,983
430
2,413
2,198
1,983
430
2,413
2>I98
Total Tangible Plant
I 16,940
430
117,370
I17,155
Total Plant
1 16,940
430
117,370
117,155
9
DENVER WATER ASSOCIATION
PLANT HELD FOR FUTURE USE
YEAR ENDED DECEMBER 31,2012
ACCOMU~
Number
Retirements
(31
Balance
End of
Year
$
THE DISTRICT HAS NO PLANT HEED FOR FUTURE USE
DENVER WATER ASSOCIATlON
UNCLASSIFIED PLANT IN SERVICE
YEAR ENDED DECEMBER 31,2012
Account
Number
Statement B
Schedule 3
Balance
Beginning
of Year
Additions
(1)
(2)
Retirements
(3)
$
$
$
THE DISTRICT HAS NO UNCLASSIFIED PLANT IN SERVICE
Balance
End of
Year
(4)
Average
Balance
(5)
$
$
DENVER WATER ASSOCIATION
MATERIALS AND SUPPLIES
YEAR ENDED DECEMBER 31,2012
Statement B
Schedule 5
Average
Balance
Account
Number
$
151
Materials and Supplies
539
Total Materials and Supplies
..
.
DENVER WATER ASSOCIATION
PREPAYMENTS
YEAR ENDED DECEMBER 31,2012
Account
Number
162
Statement B
Schedule 6
Average
Balance
Prepayments
Total Prepayments
DENVER WATER ASSOCIATION
WORKING CASH ALLOWANCE
YEAR ENDED DECEMBER 31,2012
Statement B
Schedule 7
NOT APPLICABLE
DENVER WATER ASSOCIATION
ACCUMULATED DEPKECPATION
YEAR ENDED DECEMBER 31,2012
Statement 5
Account
Average
Number
Balance
Schedule 8
s
108.1
110.1
Atcurnu3ated Depreciation
Awortimtkn
Total Aecamalnted Deprecirtbaa
102,017
s
2,453
(5)
e
$
104,470
103,244
-
103,244
DENVER WATER ASSOCIATION
RETIREMENT WORK IN PROGRESS
YEAR ENDED DECEMBER 31,2012
Account
Number
Statement B
Schedule 9
Balance
Beginning
of Year
(1)
$
(2)
Retirements
(33
Balance
End O f
Year
(4)
Average
Balance
(5)
$
$
$
$
. Additions
THE DISTRICT DOES NOT HAVE RETIREMENT WORK IN PROGRESS
Average
Balance
62.972
Total CIAC
62,672
6011
63,272
62.972
DENVER WATER ASSOCIATION
CUSTOMER ADVANCES FOR CONSTRUCTION
YEAR ENDED DECEMBER 31,2012
Balance
Beginning
of Year
(1)
Account
Number
252
Statement B
Schedule 11
Customer Advances For Construction
Total Customer Advances For Construction
Additions
(2)
Retirements
(3)
Balance
End of
Year
(4)
Average
Balance
(5)
DENVER WATER ASSOCIATION
CUSTOMER DEPOSITS
YEAR ENDED DECEMBER 31,2012
Account
Number
Statement €3
Schedule 12
Average
Balance
$
235
Iu
0
Customer Deposits
350
Total Customer Deposits
350
DENVER WATER ASSOCIATION
DETAIL OF DEBT CAPITAL
YEAR ENDED DECEMBER 31,2012
Debt Holder - PER BOOKS
Nominal Date
of Issue
Statement C
Date of
Maturity
Outstanding
per Balance
Sheet
$
Total Debt Service
Interest and Principal for Year
Rate
Interest
Principal
Totals
YO
$
$
$
-
DEHO'ER WATER ASSOCIATION
CUSTQMER'S BILL ANALYSIS
YE.4K ENDED DECEMBER 31,2912
Number
of
hfi~ininruraBlls
Next
7 nr
First
3 RB
Rl. G B ~ S
Over
20 iM
Next
10 M
1,492.6
7.96
11,881
4
94.1
8.28
779
596
17
1,768.0
51.0
I
2,668.1
190 2
36.9
3 .O
1190
70
1,542
4,481.9
1,842.0
1,006.1
30.2
26.9
10.13
9.71
9.36
8.36
11,659
9,769
283
151
18,666
880 1
20 2
10 0
16.9
47,528
1.00199368
47,623
DENVER WATER ASSOCIATION
Statement D
Sheet 2 of 6
cusror+iwsBILL ANALYSIS
YEAR ENDED DECEMBER 31,2012
PER BOOKS
Canwercial Customers
January 2012 - December 2012 (12 months)
Flat Rate Per Bill
0-3 M. Gallons
3.1 10.0 N.Gallons
10.1 20.0 h i Gallons
All Over 20.0 hl. Gallons
-
-
-
Number
of
Bilis
(1)
Minimum Bills
M. Gals
Sold
(2)
108
29
53
Rate
(3)
Revenue
(4)
$
$
3.25
Correction Factor
Per Books Annual Revenue - $
N
w
Next
Next
Over
3M
7M
1u R1
20 ICI
Gallons
Gallons
(6)
Gallons
Gallons
(8)
(3
(7)
Revenue
(91
s
351
3
23
67.0
293.2
43.1
848.0
67.0
159.0
9.o
69.0
134.2
21.0
161.0
I08
1,251.3
304.0
316.2
10.13
3,080
Per Books Rates S
Commercia! Revenue Per Analysis -%
First
35 1
13.1
230.0
38g.O
9.71
243.1
9.36
388.0
8.96
3.070
2.215
3,476
12,252
0.99428665
12,182
Statement D
5bwt 3 of 6
s
Inch Meter
Inch Meter
1
Inch Meter
1 Li2 Inch Meter
2
Inch Meter
W8
314
924
3.1 - 10.0 M. G€lllons
I L 1 - 2Q.U M Gallons
AI! Over 20.0 M. GaUons
s
3
6.50
4.75
6,006
16.25
32.50
52.M
SOB Surcharge Per M Gallons
Gallons per Leak Adjustmeat
1,492 6
1,492.6
7 96
11,881
8.28
779
4
94. I
5%
17
1
2,668.1
Is0 2
1,788 0
88Q.1
58.0
119.10
36.9
3.0
7.o
iEa.0
1,542
4,481 9
1,843.9
1 .M.
i
30.2
16.9
9.71
936
8.%
9,7539
S%3
IS!
Eoi-g Level Rates - S
Resideatiai Revenue Per Aurlysis S
10.83
18,666
1$659
20 2
16.9
47,528
Conectiou Factor
6.1301 99368
Going Level Anriual Reveauae - 5
47,623
~
Iu
P
DENVER WATER ASSOCIATION
CUSTOMER'S BILL ANALYSIS
YEAR ENDED DECEMBER 31.2012
GOING LEVEL
Commercial Custoniers
-
January 2012 December 2012 (12 months)
5/8
3/4
1
1 1/2
2
Inch Meter
Inch Meter
Inch Meter
Inch Meter
Inch Meter
Statement D
Sheet 4 of 6
Number
Minimum Bills
of
M. Gals
Bills
Sold
(1)
(2)
52
30B Surcharge Per M Gallons
-
3.1 10.0 M. Gallons
10.1 - 20.0 M Gallons
All Over 20.0 M. Gallons
Going Level Rates - $
Commercial Revenue Per Analysis -%
Correction Factor
Going Level Annual Revenue - $
Rate
(31
Revenue
(4)
s
155.4
155.4
(5)
s
6.50
9.75
16.25
32.50
52.00
7.96
First
3 IM
Gallons
Next
7M
Callous
(6)
Next
Gallons
Over
20 M
Gallons
Revenue
(7)
(8)
(9)
10 h1
507
1,237
30
3
23
204.8
43.1
848.0
90.0
9.0
69.0
114.8
21.0
161.0
13.1
230.0
388.0
108
1,251.3
168.0
10.13
296.8
9.71
243. I
9.36
388.0
8.96
1,702
2,882
2,275
3,476
1,744
12,079
0.99428665
12,010
DENVER WATER ASSOCIATION
CUSTOMER'S BtLL ANALYSIS
YEAR ENDED DECEMBER 31,2012
PROFORMA
Residential Customers
January 2012 -December 2012 (12 months)
518
3/4
1
1 112
2
Inch Meter
Inch Meter
Inch Meter
lnch Meter
Inch Meter
Gallons per Leak Adjustment
2.1 - 3.0 M. Gallons
3.1 - 10.0 M. Gallons
10.1 - 20.0 M Gallons
All Over 20.0 M. Gallons
Statement D
Sheet 5 of 6
Number
Minimum Bills
of
First
Bills
M. Gals
Sold
Rate
Revenue
(1)
(2)
(3)
(4)
s
(5)
Correction Factor
Proforma Annual Revenue - $
Next
7M
G a I I o ns
Next
Over
10 M
20 M
Gallons
Gallons
Revenue
(6)
(7)
(8)
(9)
$
$
557
552 0
22.28
22 28
22.28
35 75
57 20
12,410
4
94.1
8.28
779
367
596
17
1
940.6
2,668. I
190.2
36.9
940.6
1,788.0
51.0
3.0
880.1
119.0
7.0
20.2
10.0
16.9
1,542
4,481.9
2,782.6
11.14
1,006.1
10.68
30.2
10.30
16.9
9.86
30,998
10,745
311
167
Proforma Rates - S
Residential Revenue Per Analysis -$
3M
Gallons
13,189
55,410
1.00199368
55,521
DENVER WATER ASSOCIATION
CUSTOMER'S BILL ANALYSIS
YEAR ENDED DECEMBER 31,2012
PROFORMA
CommercialCwtomers
Januxry 2012 -December 2012 (12 moaths)
Statement D
Sheet 6 of 6
Number
of
Minimum Bills
hl. Gals
Sold
(2)
Bills
(1)
Inch Meter
3/4 Inch Meter
1
Inch Meter
1 1/2 inch Meter
2
Inch Meter
5/8
Fixed Charge for Commercial Customers
-
2.1 3.0 hi. Gallons
3.1 - 10.0 M. Gallons
10.1 20.0 M Gallons
All Over 20.0 M. Gallons
-
Proforma Rates - $
Commercial Revenue Per Analysis -$
Correction Factor
Proforma Annual Revenue - $
8
13.5
108
Rate
(31
Revenue
(4 1
(5)
s
s
22.28
22.28
22.28
35.75
57.20
3.35
First
3M
Gallons
Next
7 hf
Gallons
Next
Over
10 M
20 a1
Gallons
Gallons
(6)
(7)
(81
Revenue
178
3 62
21
53.5
53.5
53
3
293.2
43.1
134.2
21.0
13.1
23
848.0
159 0
9.0
69.0
141.0
230.0
388.0
108
1,25 1.3
290.5
316.2
243.1
388.0
11.14
10.68
10.30
9.86
3,236
3,317
2,504
540
3,826
13,483
0.99428665
13,406
DENVER WATER ASSOCIATION
IUTE CONlPARISBH
COMPARISON OF PRESENT AND PROPOSED TARIFFS
Statement
B
Schadulc 1
Present
RATE
First 3,000
Next 7,000
Next 10,000
Over 20,000
Rates
Proposed
$
$
lncraaso
Increase
s
Y O
gallons
gallons
gallons
gallans
10.13
9.7 1
9.36
8.96
11.14
1 a.68
10.30
9.86
1,Ol
0.97
0.94
10,OYO
10,0%
I0.0Yil
0.90
10.0%
518
inch meter
inch meter
inch meter
inch meter
inch mater
6.50
9.75
16.25
32.50
52.00
22.28
2228
15.76
314
I
1 112
242.8%
128.§o/u
37.1%1
10.Oo/n
10.0%
MINIMUM CHARGE
2
30 R SURCHARGE
Par 1,000 gallons
22.28
35.75
57.20
7.96
12.53
6.03
3.25
5.20
-1.96
COMMERCIAL CUS'TOMER SlJRCNARGE
3.3.5
3.35
10.00
95.00
15.00
lSO.Oo/b
200.00
350.00
moo
75.0%
&EAK AD,IIJGTMENT
8.28
9.1 1
0.83
10.0%,
RECONNECTION
0.00
so.00
50.00
Per commarcial billing
RECONNECTION
TAP PEE
28
Statemcnt D
Schedule 2
Sheet 1 of2
DENVER WATER ASSOClATlON
CASE NO. 13-1421-W-19A
CURRENT TARIFF
Effective December 13,2007
APPLICABILITY
Applicable within entire territory sewed
AVAILABILITY
Available for general domestic, commercial end industrial service.
RATES (customcrs with metered watet
3,000
First
7,000
Next
10,000
Next
20,000
All Over
supply)
gallons used per month
gallons used per monlh
gallons used per month
gallons used per month
$
$
$
$
I O 13
9 71
9 36
8.96
per 1,000 gallons
pcr 1,000 gallons
per 1,000 gallons
per 1,000 gallons
.
MINIMUM CHARGE
No bill shall be rendered for less than the following amounts according
to the size of the meter installed, to wit,
5/8
3/4
1
1-112
2
inch meter
inch meter
inch meter
inch meter
inch meter
$
$
$
$
$
6.50 per month
9.75 per month
16.25 per month
32.50 per month
52.00 per month
The above minimum charge is subject to an additional $7 96 per thousand gallons
of water used per nioath
-DELAYED PAYMENT PENALTY
The above schedule is net. On all accounts not paid in full when due, ten perccnt (1 0%)
will be added to the net mrmt mount unpaid. This delsyed payment penalty IS
not interest and is to be collected only once for each bill where it IS appropriate
RECONNECTION
$10.00
To be charged whenever the supply of water is turned off for violations of rules,
non-payment of bills, or fraudulent use of water.
TAP FEE
The following charge is to be made whenever the utility installs a new tap to
serve an applicant.
A tap fee of $200 00 will be charged to all customers who apply for service outside of a
certificate proceeding before the Commissioii for cnch new tap to the system
29
DENVER WATER ASSOCIATIUN
CAOE NO. lL1421-W-lBA
LEAK 4UJUSTMENT
$8.28 per 1,000 gallons is to bc used when the bill reflects unusual cansumptian which
Gin be attributed to eligible ieakage on the cuStonf@r'sside of tho metm Thk rate shall be
appliod to all such consumption R ~ U V @the
; cuaitomer's historiod a v e ~ a ~usagt:
o
R
E
a
u
l
t
m
A aervica chwye equal to the wctual bank fee assessed to the Asmiation or w maxiniuni of
$25.00 will be impoied upon any ouitomer whose uhack for payment af ohargoa 16
returnad by their b ~ n kdue to insumioiant funds
30
DENVER WATER ASSOCIATION
CASE NO, 13-1421-W-19A
Statement D
Schedule 3
Sheet 1 of2
PROPOSED TARIFF
APPLICABILITY
Applicable within the entire territory served.
AVAILABILITY
Available for general domestic, commercial, industrial service.
RATES (customers with metered water supply)
First
3,000
gallons used per month
7,000
gallons used per month
Next
10,000
Next
gallons used per month
20,000
gallons used per month
All Over
$
$
$
$
11.14
10.68
10.30
9.86
per
per
per
per
1,000 gallons
1.000 gallons
1.000 gallons
1,000 gallons
Commercial customers: amount as figured above plus fixed amount of $3.35
MINIMUM CHARGE
No bill will be rendered for less than the following amounts, according
to the size of meter installed, to wit:
5/8
3/4
I
1-1/2
2
inch meter
inch meter
inch meter
iiich meter
inch meter
$
$
$
$
S
22.28
22.28
22.28
35.75
57.20
The minimum charge for any customer shall be $22.28, based on a minimum usage of
2000 gallons.
DELAYED PAYMENT PENALTY
The above schedule IS net On all accounts not paid in full when due, ten percent ( I 0%)
will be added to the net current amount unpaid This delayed payment penalty is
not interest and is to hc collected only oiice for each bill where it is appropriate
RECONNECTION
The amount of $25.00 to be charged whenever the supply ofwater is turned off for violation
of rules, nonpayment of bills or fraudulent use of water.
TAP FEE
A tap fee of $350.00 will be charged to all customers who apply for service outside of a
certificate proceeding before the Commission for each new tap to the system.
31
DENVER WATER ASSOCIATION
CASE NO, 13-14tl-W-19A
Statement D
Schedule 3
Sheet 2 of 2
RETURNED CHECK CHARGE
A service charge equal to the actual bank fee assessed to the Association or a maximum of
$25 .OO will be imposed upon any customer whose check for payment of charges is
returned by their bank due to insufficient funds.
LEAK ADJUSTMENT
$9 1 1 per 1,000 gallons IS to be used when a bill reflects unusual consumption which
can be attributed to eligible leakage on customer's side of the meter This rate shall be
applied lo all such consumption above the customer's historical average usage
SECURITY DEPOSIT
Not to exceed one-twelfth (1/12) of the annual estimated charge for residential
service or one-sixth (116) of the annual estimated charge for commercial service, or fifty
dollars ($50.00). whichever is greater.
32
Statement F
S h e e t 1 of 2
DENVER WATER ASSOCIATION
COMPARATIVE BALANCE SHEET
Y E A R ENDED D E C E M B E R 31,2012
YEAR E N D E D
12/31/11
$
ASSETS AND
1213I / I 2
$
OTHER DEBITS
Utility Plant
Plant
Less: Accumulated Depreciation
Net Utility Plant
O t h e r P r o p e r t y and Investments
Investment in Associated Companies
Utility Investments
O t h e r Investments
Sinking Funds
Depreciation Fund
O t h e r Special Funds
Total O t h e r Property a n d Investments
C u r r e n t and Accrued Assets
Cash
Special deposits
W o r k i n g funds
T e m p o r a r y Cash Investments
C u s t o m e r accounts receivable
O t h e r Accounts Receivable
Accum prov for uncollectiblc accounts
Notes Receivable
Receivables from Associated Companies
Materials and Supplies
Prepayments
Accrued Interest and Dividends Receivable
Rents Receivable
Accrued Utility Revenues
Misc c u r r e n t and accrued assets
Total C u r r e n t and A c c r u e d Assets
1 16,940
1 17,370
(102.017)
(1 04,470)
14,923
12,900
4,203
4,708
4,203
4,708
15,305
12,927
6,703
6,823
529
548
22,537
20.298
41,663
37,906
D e f e r r e d Debits
Unamortized Debt Discount a n d Expense
Extraordinary P r o p e r t y Losses
Preliminary Survey a n d Investigation charges
Clearing Accounts
T e m p o r a r y Facilities
Miscellaneous Deferred Debits
Research and Development Expenditures
Accumulated Deferred I n c o m e Taxes
T o t a l Deferred Debits
T o t a l Assets a n d O t h e r Debits
33
DENVER W A T E R A S S O C I A T I O N
Statement F
Sheet 2 of 2
COMPARATIVE BALANCE SHEET
Y E A R ENDED D E C E M B E R 31,2012
YEAR ENDED
1213 111 I
$
1213 1/ I 2
$
L I A B I L I T I E S AND O T H E R C R E D I T S
C a p i t a l Stock and Surplus
Retained Earning8
-
(25,58 1)
(31,103)
(25,581)
(3 1,103)
3,322
5,267
250
450
4,572
5,737
62,672
63,272
Total Liabilities and O t h e r C r e d i t s
67,244
69.009
T o t a l Liabilities and Equity
4 1,663
37.904
Total Capital Stock a n d Surplus
L o n g T e r m Debt
Bonds
Advances from Associated Companies
Other long-tam debt
Total Long T e r m D e b t
C u r r e n t a n d Accrued Liabilities
Accounts Payable
Notes Payable
Payable to associated companies
e u s t n m a r Deposits
Accrued Taxus
Accrued Interest
Accrued Dividcnds
M a t u r e Long-Term D e b t a n d Interest
Misc c u r r e n t and accrued liabilities
Total C u r r e n t and A c c r u e d Liabilities
Deferred Credits
Unamortized P r e m i u m on Debt
C u s t o m e r Advances for Construction
Q t h e r Deferrod C r e d i t s
Accumulated Deferred Invustmont T a x Credits
Total Deferred C r e d i t s
I
C o n t r i b u t i o n s in Aid of Construction
A c c u m u l a t e d Deferred Income Taxes
Accelerated Amortization
Liberalized Reprcciation
Other
Total Accumulated Deferred Income Taxes
***Source: A n n u a l Report f a r F Y E December 31,2012
34
DENVER WATER ASSOCIATION
CASH PLOW STATEMENT
YEAR ENDED DECEMBER 31,2012
Statement F2
S h e e t I of 2
Per Boolcs
Per Books
Adjusted
0
$
Going Level
0
Proforma
$
Availabie Cash
Unmetered Sales
Metered Sales
Forfeited Discounts
Miscellaneous Service Revenues
Other Water Revenues
Other Sales to Public Authorities
Interest Income
Nonutility lnromc
59,&05
1,220
59,633
1,216
68,921
1,306
1,280
60
60
60
5
5
5
5
6 1,090
61,090
60,9 14
70,398
Operation and Maintenance Expenses
Taxes Other Than lncornc Taxes
63,975
184
63.975
I84
65,519
I 84
65,561
I84
Total Cash Requirements
64,159
64,159
65,703
65,751
(3,069)
(4,789)
4,647
(3,069)
(4.789)
4,647
Total Available Cash
59.805
Cash Requirements
Cash Available for Debt Service
Debt Service Requirements
-
Bonds Interest Expense
Principal Retirement
Sub-To ta I
Debt Service Reserve Funding
Total Debt Service Reserve Requirements
Before Renewal and Replacement Reserve
Remaining Cash Surplus (Deficit)
(3,069)
35
2012
Plant Additions
430
2,s 521
Debt
2,359
1.11149
Adjusted Net Additions
(174)
1.MI
2,5413
1.111
1.145
2366
DENVER WATER ASSOCIATION
DETAIL OF ADJUSTMENTS
YEAR ENDED DECEMBER 31,2012
Adjustment
Number
Account
Number
Statement G
Sheet 1 of 3
ACCOUNTING ADJIJSTMENTS
INCREASE
<DECREASE>
$
(1)
470.0
474.0
Other Operating Revenues Forfeited Discounts
Other Operating Revenues Other Water Revenues
I220
( I 220)
To reclassify forfeited discounts to proper account for the lest year
37
Statement C
Sheet 2 of 3
DENVER WATER ASSOCIATION
DETAIL OF ADJUSTMENTS
YEAR ENDED DECEMBER 31,2012
Adjustment
Number
INCREASE
<DECREASE>
Account
Number
461.2
GOING LEVEL ADJUSTMENTS
s
Metered Sales Commercial Customers
072)
Going Level
12,010
12,182
( 1721
Less Per Books Adjusted
Going Level Adjustment
To reflect sales revenue to the corrected amount for commercial sales The Going
Level bill analysis pnces the commercial sales in accordance with the approved tanff
470
Other Operating Revenues Forfeited Discounts
Per Books Sales Revenue
P a Books Adjusted Forfeited Discounts
% of Forfeited Discounts to Sales
Going Level Sales Revenue Decrease
Going Level Forfeited Disount
Forfeited Discounts
59,805
1,220
0.02040
(172)
(4)
To reflect forfeited discounts related to Going Level sales decrease
670.7
304
Customer Accounts Uncollectibles Expense
60,849
0.005
304
Going Level Sales & Penalties
Uncollectible Rate
Going Level Uncollectibles
Less: Per Books Adjusted
Adjustment
304
To provide for uncollectible accounts expense
601.8
Admin & General Expenses Salanes & Wages - Employees
600
3,000
2,400
600
Going Level
Less Per Books Adjusted
Going Level Adjustment
O E c e Managers salary increased from $200 per month to $250 per month after the
test year This reflects salaries' increas: effective January I , 2013
656.8-659.8
640
Admm & General Expenses Insurance
Going Level
2,698
2,058
640
Less Per Books Adjusted
Going Level Adjustment
To adjust insurance expense based on current premiums for period oovenng
10/25/2013 to 10/25/2014
403.0
Depreciation & Amortization Depreciation
$
Goine Level Plant
Less A
C
,C
l
Plant Depreciation Rate %
Gomcr Level Depreciation
Less Per Books Adjusted Depreciation
Adjustment
I 17.370
63 272
54,098
0 02090
1,131
2,453
(1,322)
To adjust depreciation expense on plant acquired by Contnbutions in Aid of Construction
38
DENVER WATER ASSOCIATION
DETAIL OF ADJUSTMENTS
YEAR ENDED DECEMBER 31,2012
Adjustment
Number
Account
Number
Statement G
Sheet 3 of 3
PROFORMA ADJUSTMENTS
INCREASE
<DECREASE>
$
(8)
461.1
461.2
Metered Sales Residential Customers
Metered Sales Commercial Customers
7,898
1.396
Residential Sales
Proforma
Less: Going Level
Proforma Adjustment
To reflect the increase
(9)
470
55,521
47,623
7,898
in
Commercial Sales
Proforma
13,406
Less Going Level
12,010
Proforma Adjustment
1,396
revenues under the Association's proposed rates
Other Operating Revenues Forfeited Discounts
I90
Forfeited Discounts
Going Level Forfeited Disount
1,2 16
Going Level Sales
59,633
0.02040
Ratio
Proforma Sales Increase
9,294
Proforma Forfeited Disount
190
To adjust forfeited discounts based on the Association's increase in revenue
(10)
670.7
41
Customer Accounts: Uncollectibles Expense
Proforma Sales &Penalties
Uncollectible Rate
Going Level Uncollectibles
Less: Going Level
Adjustment
70,333
0.005
352
304
47
To adjust for uncollectible accounts expense for the proposed revenue increase
39
CASE NO. 13-1421-W-19A
DENVER WATER ASSOCATION
REVENUE REQUIREMENTS
STAFF RECOMMENDED RATES
PREPARED BY
JOHN HARPER
UTILITIES ANALYST
UTILITIES DIVISION
ON BEHALF OF THE STAFF OF THE
PUBLIC SERVICE COMMISSION OF WEST VIRGINIA
******
December 27,2013
201 Brooks Street, P. 0. Box 812, Charleston, WV 25323
DENVER WATER ASSOCIATION
CASE NO. 13-1421-W-19A
REVENUE REQUIREMENTS
STAFF RECOMMENDED RATES
Staffs Rule 42 Exhibit has been utilized to prepare the Revenue
Requirements and Staff Recommended Rates for Denver Water Association
(Association). The Association is proposing a rate increase that would generate
additional annual revenue of $9,484, or 15.57%, from its current rates,
Staff Recommended Rates generate additional revenue of $5,305 annually
or an 8.71% increase in revenue generated under the Association’s existing rates.
As shown on Exhibit 1, this level of revenue would be sufficient to cover the
Association’s operating cash requirements of $65,730 and provide a surplus of
$489 for the internal funding of plant additions. The surplus covers the
Association’s five-year average of net plant additions of $473.
Exhibit 2 is a Bill Analysis showing the sales revenue generated under Staff
Recommended Rates. A comparison of the Association’s current rates, the
Association’s proposed rates, Staff Recommended Rates, and a comparison of
bills at various usage levels are shown on Exhibit 3. The monthly bill for the
average usage of 2,900 gallons for the Association’s residential customers will be
$31.64, which is an increase of $2.05 or 6.91% under Staff Recommended Rates.
The monthly bill for the average usage of 1,200 gallons for the Association’s
commercial customers will be $23.36, which is an increase of $4.06 or 21.01%
under Staff Recommended Rates. The differential in the percentage increase for
the average bill for each class of customers is the result of all commercial
customers using a 3/4 inch meter and thus having a higher minimum bill (as
opposed to the 518 inch meter used by all residential customers); however, t h e
overall percentage increase in generated revenue is similar among both classes,
The Association’s 30B surcharge will be $7.65, which is a decrease of
$0.31 or 3.89% under Staff Recommended Rates. The decrease in the surcharge
(as well as the 6.61% increase in the “First 3,000 gallons used per month” block
and the 45.38% increase in minimum bills, which deviate from the straight
percentage increase of around 8.71%) results from an effort to normalize the rate
effects of the Association’s prior $3.OO surcharge or increase per thousand gallons
in purchased water costs from the Town of Tunnelton in Case No, 07-0721-W30B (which lasted from 2007 until 201 1).
Denver Water Association
Case No. 13-1421-W-19A
December 27,20 13
Page 2 of 2
The Utilities Division has also calculated the leak adjustment rate, The
current leak adjustment rate is $8.28 per M gallons. The calculated leak
adjustment rate is $5.86 per M gallons. The leak adjustment rate is derived by
adding the purchased power cost of $598 to the purchased water cost of $32,97 1
and dividing that total by the 5,733 M gallons sold in the test year to derive the
leak adjustment rate of $5.86 per M gallons. This decrease in the leak adjustment
rate is the result of the aforementioned $3.00 surcharge per thousand gallons in
purchased water costs no longer applying.
The Utilities Division recommends the rates and charges shown in Exhibit
4 be approved for Denver Water Association.
JH:s
Exhibit 1
DENVER WATER ASSOCIATION
CASE NO. 13-1421-W-19A
CASH FLOW ANALYSIS
District
Proposed Rates
$
Available Cash
Residential Revenues
Commercial Revenues
Industrial Revenues
Public Authority Revenues
Penalties
Miscellaneous Service Revenues
Interest Income
Total Available Cash
Cash Requirements
Operation a n d Maintenance Expenses
Taxes Other Than Income Taxes
Total Cash Requirements
Cash Available for Debt Service
5 1,785
13,047
1,323
60
5
66,2 19
65,546
184
65.730
~~
489
Debt Service Requirements
Interest
Principal
Total Available for Capital Additions
489
DENVER WATER ASSOCATION
CASE NO. 13-1421-W-19A
CUSTOMER BILL ANALYSIS
STAFF RECOMMENDED RATES
Exhibit 2
Sheet 1 of 2
Number
Residential Customers
Inch Meter
3/4 Inch Meter
1
InchMeter
1 1/2 Inch Meter
2
Inch Meter
5/8
M. Gals
Sold
Rate
Revenue
(1)
(2)
(3)
(4)
$
$
924
3.1 - 10.0 M. Gallons
10.1 - 20.0 M Gallons
AI1 Over 20.0 M. Gallons
Staff Recommended Rates
(5)
Next
Next
7M
Gallons
10M
Gallons
Over
20M
Gallons
Revenue
(6)
(7)
(8)
(9)
$
9.45
14.18
23.63
47.25
75.60
8,732
1,492.6
7.65
11,418
4
94.1
5.86
551
596
17
2,668.1
190.2
36.9
1,788.0
51.0
3.0
880.1
119.0
7.0
20.2
10.0
16.9
4,481.9
1,842.0
10.80
1,006.1
10.55
30.2
10.17
16.9
9.74
19,894
10,614
307
165
1
-$
First
3M
Gallons
1,492.6
30B Surcharge per M Gallons
Gallons per Leak Adjustment
Minimum Bills
of
Bills
1,542
Revenue Per Analysis -$
20,702
Correction Factor
51,682
1.00199368
-
Total Residential Revenue under Staff Recommended Rates S
51,785
DENVER WATER ASSOCATION
CASE NO. 13-1421-W-19A
CUSTOMER BILL ANALYSIS
STAFF RECOMMENDED RATES
Exhibit 2
Sheet 2 of 2
Number
Minimum Bills
M. Gals
of
Bills
(1)
Commercial Customers
Rate
(3)
Sold
(2)
Revenue
(4)
$
Inch Meter
3/4 Inch Meter
1
InchMeter
1 112 Inch Meter
2
Inch Meter
52
30B Surcharge per M Gallons
-
3.1 10.0 M. Gallons
10.1 20.0 M Gallons
-
All Over 20.0 M. Gallons
Staff Recommended Rates
-$
155.4
155.4
(5)
Next
7M
Gallons
Next
10M
Gallons
Over
20M
Gallons
(6)
(7)
(8)
$
9.45
14.18
23.63
47.25
75.60
518
First
3M
Gallons
7.65
$
737
1,189
30
3
23
204.8
43.1
848.0
90.0
9.0
69.0
114.8
21.0
161.0
13.1
230.0
388.0
108
1,251.3
168.0
10.80
296.8
10.55
243.1
10.17
3880
9.74
1,814
3,131
2,472
3,779
Revenue Per Analysis -$
1,926
Correction Factor
Total Commercial Revenue under Staff Recommended Rates
Revenue
(9)
13,122
0.99428665
-$
13,047
DENVER WATER ASSOCATION
CASE NO. 13-1421-W-19A
RATE COMPARISON
COMPARISON OF PRESENT, DISTRICT PROPOSED, AND STAFF RECOMMENDED TARIFFS
RATES
First 3,000
Next 7,000
Next 10,000
All over 20,000
District Proposed
Rates
Rates
$
$
Increase
Staff Recommended
Increase
Rates
Increase Increase
$
10.13
9.71
9.36
8.96
1.14
0.68
0.30
9.86
6.50
9.75
16.25
32.50
52.00
30B Surcharge
Leak Adjustment
MINIMUM BILL
518 inch meter
314 inch meter
1 inch meter
1 112 inch meter
2 inch meter
gallons used per month
gallons used per month
gallons used per month
gallons used per month
Present
Exhibit 3
Sheet 1 of 2
1.01
0.97
0.94
0.90
$
%
9.97%
9.99%
10.04%
10.04%
10.80
10.55
10.17
9.74
0.67
0.84
0.81
0.78
6.61%
8.65%
8.65%
8.71%
22.28
22.28
22.28
35.75
57.20
15.78 242.77%
12.53 128.51%
6.03 37.11%
3.25
10.00%
5.20
10.00%
9.45
14.18
23.63
47.25
75.60
2.95
4.43
7.38
14.75
23.60
45.38%
45.38%
45.38%
45.38%
7.96
0.00
-7.96 -100.00%
7.65
(0.3 1)
-3.89%
8.28
9.11
0.83
5.86
(2.42) -29.23%
10.02%
45.38%
Exhibit 3
Sheet 2 of 2
DENVER WATER ASSOCIATION
CASE NO. 13-1421-W-19A
RATE INCREASE COMPARISON
Schedule I
Available for general, domestic, commercial, and industrial
Residential
Gallons
of Usage
0
1,000
2,000
2,900
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
50,000
Current
Rates
Proposed
Rates
Proposed
Increase
$
$
$
Proposed Staff Recommended
Increase
Rates
YO
Increase
$
Percent
%
6.50
14.46
22.42
29.59
30.38
40.09
49.80
59.51
69.22
78.93
88.64
98.35
145.15
191.95
236.75
281.55
326.35
371.15
460.75
22.28
22.28
22.28
32.31
33.42
44.10
54.78
65.46
76.14
86.82
97.50
108.18
159.68
211.18
260.48
309.78
359.08
408.38
506.98
15.78
7.82
-0.14
2.72
3.04
4.01
4.98
5.95
6.92
7.89
8.86
9.83
14.53
19.23
23.73
28.23
32.73
37.23
46.23
242.77%
54.08%
-0.62%
9.19%
10.01%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
9.99%
10.01%
10.02%
10.02%
10.03%
10.03%
10.03%
10.03%
9.45
17.10
24.75
31.64
32.40
42.95
53.50
64.05
74.60
85.15
95.70
106.25
157.10
207.95
256.65
305.35
354.05
402.75
500.15
2.95
2.64
2.33
2.05
2.02
2.86
3.70
4.54
5.38
6.22
7.06
7.90
11.95
16.00
19.90
23.80
27.70
31.60
39.40
45.3 8%
18.26%
1 0 . 3 9%
6.91 OA
6.65%
7.13%
7.43%
7.63%
7.77%
7.88%
7.96%
8.03%
8.23%
8.34%
8.41Oo/
8 . 45Oo/
8.49%
9.75
17.71
19.30
25.67
33.63
43.35
53.06
62.77
72.48
82.19
91.90
101.61
148.41
195.21
240.01
284.81
329.61
374.41
464.01
25.63
25.63
25.63
25.63
36.77
47.45
58.13
68.81
79.49
90.17
100.85
111.53
163.03
214.53
263.83
313.13
362.43
411.73
510.33
15.88
7.92
6.33
-0.04
3.14
4.10
5.07
6.04
7.01
7.98
8.95
9.92
14.62
19.32
23.82
28.32
32.82
37.32
46.32
162.87%
44.72%
32.80%
-0.16%
9.34%
9.46%
9.56%
9.62%
9.67%
9.71%
9.74%
9.76%
9.85%
9.90%
9.92%
9.94%
9.96%
9.97%
9.98%
14.18
21.83
23.36
29.48
37.13
47.68
58.23
68.78
79.33
89.88
100.43
110.98
161.83
212.68
261.38
3 10.08
358.78
407.48
504.88
4.43
4.12
4.06
3.81
3.50
4.33
5.16
6.00
6.84
7.68
8.52
9.36
13.42
17.46
21.37
25.26
29.16
33.06
40.86
4 5 . 3 8%
23.24%
21 -01 Y o
14.82%
10 . 3 9%
9.98%
9 . 7 3 O/o
9 . 5 7%
9.44%
9.35%
9.28%
9 .22%
9.04%
8.95%
8.90%
8.87%
8.85%
8 83%
8 - 8 1%
8.51%
8 . 55 Oo/
Commercial
0
1,000
1,200
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
50.000
-
Exhibit 4
DENVER WATER ASSOCIATION
CASE NO. 13-1421-W-19A
Sheet 1 Of2
STAFF RECOMMENDED TARIFF
APPLICABILITY
Applicable within entire territory served
AVAILABILITY
Available for general domestic, commercial and industrial service.
(1)
0)
RATES (customers with metered water supply)
3,000
gallons used per month
First
7,000
gallons used per month
Next
10,000
gallons used per month
Next
20,000
gallons used per month
All Over
$
$
$
$
10.80
10.55
10.17
9.74
per
per
per
per
1,000 gallons
1,000 gallons
1,000 gallons
1,000 gallons
MINIMUM CHARGE
No bill shall be rendered for less than the following amounts according
to the size of the meter installed, to wit:
5/8
3/4
1
1 1/2
2
-
inch meter
inch meter
inch meter
inch meter
inch meter
$
$
$
$
$
9.45
14.18
23.63
47.25
75.60
per month
per month
per month
per month
permonth
The above minimum charge is subject to an additional $7.65 per thousand gallons
of water used per month.
DELAYED PAYMENT PENALTY
The above schedule is net. On all accounts not paid in full when due, ten percent (10%)
will be added to the net current amount unpaid. This delayed payment penalty is
not interest and is to be collected only once for each bill where it is appropriate.
RECONNECTION
$10.00
To be charged whenever the supply of water is turned off for violations of rules,
non-payment of bills, or fraudulent use of water.
TAP FEE
The following charge is to be made whenever the utility installs a new tap to
serve an applicant.
A tap fee of $200.00 will be charged to all customers who apply for service outside of a
certificate proceeding before the Commission for each new tap to the system.
(I) Denotes Increase
DENVER WATER ASSOCIATION
CASE NO. 13-1421-W-19A
@)
LEAK ADJUSTMENT
$5.86 per 1,000 gallons is to be used when the bill reflects unusual consumption which
can be attributed to eligible leakage on the customer's side of the meter. This rate shall be
applied to all such consumption above the customer's historical average usage.
RETURNED CHECK CHARGE
A service charge equal to the actual bank fee assessed to the Association or a maximum of
$25.00 will be imposed upon any customer whose check for payment of charges is
returned by their bank due to insufficient funds.
(I) Denotes Increase
(D) Denotes Decrease
Exhibit 4
Sheet 2 of 2