Aqua Pennsylvania, Inc. 762 W. Lancaster Avenue Bryn Mawr, PA 19010

Transcription

1 A JA Aqua Pennsylvania, Inc. 762 W. Lancaster Avenue Bryn Mawr, PA August 19, 216 VIA FEDERAL EXPRESS Rosemary Chiavetta, Secretary Pennsylvania Public Utility Commission Two North Keystone Commonwealth Keystone Building 4 North Street Harrisburg, PA 1712 Re: Superior Water Company, Inc. - Third Quarter 216 Distribution System Improvement Charge (DSIC) Dear Secretary Chiavetta: Enclosed are the original Superior Water Company, Inc. s supporting DSIC work papers as well as Tariff Supplement No. 1 for the above-mentioned time period. As noted in the PUC Order, these documents are also being served electronically to the Office of Consumer Advocate and the Office of Small Business Advocate. Superior Water Company, Inc. is also serving these documents to the PUC Bureau of Audits. If you have any questions regarding this filing by Aqua Pennsylvania, Inc. on behalf of Superior Water Company, Inc., please contact me at (61) Sincerely, Enclosure cc: Certificate of Service Renee T. Marquis ^ Manager of Rates and Planning Aqua America, Inc. AUG PA PUBLIC UTILITY COWMISSIOtt SECRETARY'S BUREAU An Aqua America Company

2 SUPERIOR WATER COMPANY. INC. DISTRIBUTION SYSTEM IMPROVEMENT CHARGE ("DSIC"! CALCULATION 212 Actual Through November November 215 May 216 Jun 216 Jul 216 Three Months Total 1 ACC! 1 DescnoOon October 214 October 215 Aonl 216 Actual Actual Actual To Dale To Date 331 Mam Cleaning & Relnng 331 Majoi Man Replacements 331 Minor Changes in Mam 331 Minor Man Replacements 331 Tie in Dead End Mams 331 Unreimbursed Imprvmts due to highway relocations 331 Valve Replacement Program 333 Repl Services 333 Repl Services due lo Mam Rehabilitation 33* Replacement Meters 335 Replacement Fire Hydrants D 1, TOTAL ADDITIONS Ol Ol [ Ol 35,166 LT CP m i n tr\ 7' n >> n1! cn \ a i' ^ ^ Cl -< -1 './) cp n c o 77 rn t* c< * TO r-o <ZD CD DSIC Effeclive

3 SUPERIOR WATER COMPANY. INC. DISTRIBUTION SYSTEM IMPROVEMENT CHARGE rpslcl CALCULATION Accumulated Quarterly Quarterly Accumulated Depreciation Depr. On Depr. on Deprecation Depr Quarterly Acct I Description Bat Pnor Assets May 16 - Jut 16 Assets Bal. at 7/31/216 Rate Depreciation O) (2) 331 Ma>n Cfeaorng & Re lining 2.15% 331 Major Mam Replacements 1.18% 331 Minor Changes in Mams 1.16% 331 Minor Mam Replacements 1.18% 331 Tie m Dead End Mams 1.18% 331 Unreimbursed Imprvmts due to highway relocations 1.18% 331 Valve Replacement Program 1.72% 333 Repl Servces % Repl Services due to Main Rehabilitation % Replacement Meters ,734 51, % Replacement Fire Hydrants % 36 TOTAL I SI.16 I I I 4 li~l (1) One Ful Quarter's Depreciation. (2) One Half Quarter Oeprecialcn. DSIC Effective

4 SUPERIOR WATER COMPANY. INC, DISTRIBUTION SYSTEM IMPROVEMENT CHARGE fpsic") CALCULATION Applicable Addmons Less Accumulated Bal. at 7/31/316 Net Rate Base Includable in OS C Calculation DSIC EFFECTIVE I 9/1/316 I Annual Quarterly Monthly (55,119) 295,46 Annual Revenue Requirement F?ate % Quarterly Revenue Requirement Rate 2 83Vs Quarterly Capital Cost Recovery Quarterly Depreciation Expense Total Quarterly DSIC Revenue Requirement ,118 Current Cost Recovery Rate 1.84% 215 True-Up [S19 under collection] it E Factor Rate.% Applicable Base Rate Revenue DSC RATE 1.85% SUPERIOR WATER COMPANY. INC. DISTRIBUTION SYSTEM IMPROVEMENT CHARGE rosici CALCULATION WEIGHTED COST OF CAPITAL BaL al 7/31/216 Proforma Capital Cost Weighted Avg Tajr Rev Par RonM Structure Rate Cost Rate MuJDol*er Rea 44.54% 4 56% 2 3% Z3%.%.%.% ".% % 9.6% S.43% t % J SIS % 7 4SH 11.91% Note The cost rate of and e'e*ft'ed?tock ere fhe Comoeny $ actual cost rales. The equity cost rate the equity return rate catenated by the Commia&on ssatt and Dre&erned m the latest Quarterly Report on the Earning* of junsdctranal Utiloet The tai muhplter e cateiiated as loflows 1^(1 - Tav Rate} t It Fed Taj; Rate}] where the Pa a* rale is 9.99% and Fed ts» rate is 35% PA TAX FED TAX 9.99% 35.% 1/[(1- PA TAX) * (1-FED TAX)] 1/l(1-9.99%)-(l-35%)] [ 1.7Q PROOF PA TAX FED TAX DSIC Effective

5 Superior Water Company, Inc. DSIC'Eliglble Plant Closings By Month Activity Group Activity # Description May Jun Jul Grand Total

6 Supplemenl No. I to Tariff Water - Pa. P.U.C. No. 5 SUPERIOR WATER COMPANY, INC. RATES, RULES AND REGULATIONS GOVERNING THE PROVISION OP WATER SERVICE TO THE PUBLIC IN PORTIONS OF DOUGLASS. NEW HANOVER. LOWER POTTSGROVE. UPPER FREDERICK, UPPER POTTSGROVE. AND WORCESTER TOWNSHIPS, MONTGOMERY COUNTY NORTH COVENTRY TOWNSHIP. CHESTER COUNTY WASHINGTON TOWNSHIP. BERKS COUNTY ISSUED: August EFFECTIVE: September I, 216 By: Mr. Steve Tagert President. Aqua Pennsylvania, Inc. Superior Water Company. Inc. 762 Lancaster Avenue Bryn Mawr. Pennsylvania 191 NOTICE THIS TARIFF DECREASES THE DISTRIBUTION SYSTEM IMPROVEMENT CHARGE SEE PAGE NO. 4

7 SUPERIOR WATER COMPANY Supplement No. 1 to Tariff Water - Pa. P.U.C. No. 5 First Revised Page No. 1 Cancelling and Superseding Original Page No. I LIST OF CHANGES MADE BY THIS TARIFF Supplement No. I to Tariff Water - Pa. P.U.C. No. 5 updates the Distribution System Improvement Charge to 1.85% effective on September!, 216. ISSUED: August 19, 216 EFFECTIVE: September I. 216

8 SUPERIOR WATER COMPANY Supplement No. 1 to TartH'Waler- Pa. P.U.C. No. 5 First Revised Page No. 2 Cancelling and Superseding Original Page No. 2 TABLE OF CONTENTS Index Page List of Changes Made by this Tariff 1 First Revised (C) fable of Contents 2 First Revised <C) PART 1: Definitions 3 Original PART I: Definitions 4 Original PART I: Definitions 5 Original PART I: Definitions 6 Original PART l: Definitions 7 Original PART 11: Rules and Regulations 8 Original Section A - Application for Service 8 Original Section B - Construction and Maintenance for Facilities 9 Original Section B - Construction and Maintenance for Facilities 1 Original Section B - Construction and Maintenance for Facilities 11 Original Section C- Discontinuance. Terminiation and Restoration of Service 12 Original Section C - Discontinuance. Terminiation and Restoration of Service 13 Original Section C - Discontinuance. Terminiation and Restoration of Service 14 Original Section D - Meters 15 Original Section D - Meters 16 Original Section E - Billing and Collections 17 Original Section E - Billing and Collections 18 Original Section F - Deposits 19 Original Section G- Water Main Extensions 2 Original Section G- Water Main Extensions 21 Original Section G- WaterMain Extensions 22 Original Section G- WaterMain Extensions 23 Original Section G - Water Main Extensions 24 Original Section G- Water Main Extensions 25 Original Section G- Water Main Extensions 26 Original Section G- Water Main Extensions 27 Original Section G- Water Main Extensions 28 Original Section G- Water Main Extensions 29 Original Section H - Public Hydrant Service 3 Original Section 11 - Public Hydrant Service 31 Original Section I - Private Fire Protection 32 Original Section J - Service Continuity 33 Original Section K - Liability for Damages 34 Original Section K - Liability for Damages 35 Original Section L - Waivers 36 Original Section M - Amendment oftarilt 37 Original PART III: Rales 38 Original A. Metered Residcntial/Non-Resideniia! Rale 38 Original B. Fire Protection Service 38 Original C. Water Use for Construction (Temporary) 38 Original D. Economic Development and I.x)ad Stabili2ation Rates (Rate EDES) 39 Original E. Distribution System Improvement Charge ("DSIC") 4 First Revised (C) E. Distribution System Improvement Charge ("DSIC") 41 Original PART IV - Water Conservation Contingency Plan 42 Original PART IV- Water Conservation Contingency Plan 43 Original (C) Indicates Change ISSUED: August EFFECTIVE: September 1.216

9 SUPERIOR WATER COMPANY Supplement No. I to Tariff Water - Pa. P.U.C. No. 5 Pirst Revised Page No. 4 Cancelling and Superseding Original Page No. 4 E. Distribution System Improvement Charge ( DS1C ) In addition to the net charges provided for in this Tariff, a surcharge of 1.85% will apply to all bills issued. (D) excluding public lire hydrants, on or after September I, PURPOSE; APPLICABILITY Purpose: To recover the fixed costs (depreciation and pre-tax return) of certain non-revenue producing, non-expense reducing distribution system improvement projects completed and placed in-service and to be recorded in the individual accounts, as noted below, between base rate cases and to provide the Company with the resources to accelerate the needed replacement of aging water distribution infrastructure, to comply with evolving regulatory requirements imposed by the Safe Drinking Water Act, to enhance lire protection, and to develop and implement solutions to regional water supply problems. PENNVEST funded distribution projects, ifany are not DSIC eligible. 2. ELIGIBLE DSIC PROPERTY Distribution System Facilitates are defined as follows: a. Distribution Main Extensions installed to eliminate dead ends and to implement solutions to regional water supply problems that have been documented as presenting a significant health and safety concern for customers currently receiving serv ice from Superior; b. Distribution Main and Valve Replacement for existing facilities that have worn out, are in deteriorated condition, or upgraded to meet Chapter 65 regulations of Title 52; and c. Services. Meters, and Hydrants installed as in-kind replacements for customers to improve safe, reliable and adequate service. 3. CALCULATION OF DSIC The DSIC shall be calculated as follows: DSIC = (DSI x PTRR) + Pep + e PQR Where: DSI = Original cost of eligible project(s), net of accumulated depreciation. P'I RR = Pre-tax return rate applicable to eligible project(s). Dep = Depreciation expense related to project(s). e = Calculated annual reconciliation feature described more fully below. PQR = Non-DSIC Projected quarterly revenue from customer subject to DSIC. Quarterly Filings: Data to be submitted to appropriate offices before DSIC effect dates. ISSUED: August 19, EFFECTIVE: September 1.216

10 SUPERIOR WATER COMPANY. INC CERTIFICATE OF SERVICE BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION Superior Water Company. Inc. Distribution System Improvement Charge (DSIC) Filing CERTIFICATE OF SERVICE I hereby certify that I have this day filed supporting DSIC workpapers with the PA Public Utility Commission and upon the person(s) and in the manner indicated below: VIA FEDERAL EXPRESS Erin L. Gannon, Esq. Christine Hoover, Esq. Office of Consumer Advocate 555 Walnut Avenue, Fifth Floor Forum Place Harrisburg, PA ( to: egannon@,paoca.oru & ehoover@r>aoca.onz) John R. Evans Office of Small Business Advocate Suite 112, Commerce Bldg. 3 N. Second Street Harrisburg, PA ( to: iorevan@,pa.gov) Larry Treaster Bureau of Audits Three East Keystone Commonwealth Keystone Building 4 North Street Harrisburg, PA 1712 ( to latreastcr@state.pa.us & Ibumer@pa.aov) Michael Daley Public Utility Auditor Public Utility Commission Commonwealth Keystone Building 4 North Street, 3rd Floor East Harrisburg, PA 1712 ( to: mdalev@pa.aov: kraffenspe@pa.aov: waburd@pa.aov & kmather@,pa.aov) r. o i/i Dated: August 19, 216 Ci>- Wi 445 IT UD <=D CvJ cn CO S' ^ <t c< O :~ U uj i/; St yi5 UJ CD -j) \D Cl. < a. r Rene^j^iviarquis Manager of Rates ani Aqua America, Inc. L6/.,*-a s' Planning

11 Page 1 o f 1 ORIGIN ID:WAYA (61) BRYN MAWR. PA 191 UNITED STAtES US TO R AVENUE SHIP DATE: 19AUG16 ACTWGT:.25 LB CAD: 16133Q/INET379 BILL SENDER ROSEMARY CHIAVETTA, SECRETARY PA PUBLIC UTILITY COMMISSION 4 NORTH STREET TWO NORTH KEYSTONE HARRISBURG PA 1712 ^ REF; PO DEPT: [ SH MDTA MON - 22 AUG 3:P STANDARD OVERNIGHT PA-US 1712 MDT 544J1/137/14E8 o e oa. ) TJ 8w to w *- -E Q. 3 </) c db ai o o c >, o.1 3.«.^ s-ai ^ -o O)^ c a < I i> o n> 5 c laos' til" o> C C =. O. c JS 8 J 3 Q. < ^ cvi «r e.52 = O TO 9-uj X g 9-c t3 ( -J3 ra I? S S >. C S ro Q. J= = O =,>< LU TO.9 «= O ^ c r2 -R e >2 t5 2 o w O. O TO fc i ' S i S-2 : 8 -o i - <5 c a o -S S J? ^ S in! = ^ O E 8/19/216