THE YORK WATER COMPANY York, PA

Transcription

1 Volume 9 Docket No. R Wastewater THE YORK WATER COMPANY York, PA INFORMATION SUBMITTED TO PENNSYLVANIA PUBLIC UTILITY COMMISSION PURSUANT TO: Title 52 Pennsylvania Code Exhibit No. HI-2W through Exhibit No. HV-1-1W Exhibit No. F(b )-1 W through Exhibit No. FV -12-5W and Statement Nos. 3W through 5W Statement Nos. 103W through 105W Supplement No. I to TariffWastewater-Pa. P.U.C. No.I

2 Docket No. R THE YORK WATER COMPANY WASTEWATER HISTORIC TEST YEAR EXHIBITS

3 THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION STATEMENT OF INCOME UNDER EXISTING RATES FOR THE TWELVE MONTHS ENDED DECEMBER 31,2012 AND THE ANTICIPATED STATEMENT OF INCOME WHEN THE PROPOSED RATES BECOME EFFECTIVE Exhibit No. HI-2W Page 1 of 2 Witness: K M Miller Twelve Months Ended December Exhibit 31,2012 Reference (1) (2) Under Existing Rates Pro Forma Twelve Months Ended December Adjustment (3) Exhibit 31,2012 Reference (4) (5) Under Proposed Rates Adjustment (6) Pro Forma Twelve Months Ended December 31,2012 (7) Operating Revenues 46,800 HII-2W 65, ,840 HII-2W 101, ,718 Operating Expenses, Depreciation and Taxes Other Than Income Taxes Wastewater Treatment Expenses Administrative and General Expenses Increased Costs Resulting From Load Growth Amortization of Utility Plant Acquisition Adjustment General Price Level Adjustment Depreciation and Amortization Taxes Other Than Income Taxes 38,780 HIII-2W 2,156 HIII-2W HIII-2W HIII-2W HIII-2W HI-2-1W 38 HIV-15W 52, ,612 3,522 91,389 2,803 HIII-2W 18,612 3,560 HIV-15W ,389 2,803 18,612 4,171 Total Operating Expenses, Depreciation and Taxes Other Than Income Taxes 40,974 75, , ,975 Net Operating Income Before Income Taxes 5,826 (10,350) (4,524) 101,267 96,743 Income Taxes Current Federal Income Tax Current State Income Tax Deferred Federal Income Tax-Accelerated Depreciation (13,444) HIV-17W 278 HIV-17W 16,979 HIV-17W 10,144 (1,355) (18,032) (3,300) HIV-17W (1,077) HIV-17W (1,053) 30,991 10,117 27,691 9,039 (1,053) Total Income Taxes 3,813 (9,243) (5,430) 35,678 Net Operating Income 2,013 (1,107) ,267 61,066

4 THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION STATEMENT OF INCOME UNDER EXISTING RATES FOR THE TWELVE MONTHS ENDED DECEMBER 31,2012 AND THE ANTICIPATED STATEMENT OF INCOME WHEN THE PROPOSED RATES BECOME EFFECTIVE Exhibit No. HI-2W Page 2 of 2 Witness: K M Miller Under Existing Rates Pro Forma Twelve Twelve Months Months Ended Ended December Exhibit December 31,2012 Reference Adjustment 31,2012 (1) (2) (3) (4) Under Proposed Rates Pro Forma Twelve Months Ended Exhibit December Reference Adjustment 31,2012 (5) (6) (7) Other Income (Non-operating) N Dividend Income Rent Income Interest Income Miscellaneous Non-operating Expenses Total Other Income Income Deductions Interest on Long Term Debt and Amortization of Debt Expense Interest on Bank Borrowings Interest Charged Construction (4,847) (4,847) Miscellaneous Income Deductions Total Income Deductions (4,847) (4,847) Net Income 6,860 (1,107) 5,753 (4,847) (4,847) 101,267 65,913

5 Exhibit No. HI-2-1W Page 1 of 1 Witness: T W Altland THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION STATEMENT OF INCOME ADJUSTMENTS UNDER EXISTING RATES ACCOUNT EXPLANATION To adjust depreciation recorded on the corporate books during the twelve months ended December 31, 2012 to pro forma annual depreciation accrual as of December 31, 2012 using straight-line, remaining life method. -3- ADJUST MENT INCREASE DECREASE Annual Depreciation Accrual 18,612 Less: Depreciation for Twelve Months Ended December 31, , Depreciation 18,612

6 Exhibit No.HII-1W Page 1 of 1 Witness: K M Miller THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSJON GALLONS SOLD (000 OMITTED) AND OPERATING REVENUES FOR TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011 AND NUMBER OF CUSTOMERS AS OF DECEMBER 31, 2012 AND II. Operating Revenue D. 1 Prepare a summary of operating revenues for the test year and the year preceding the test year providing the following information: a. For each classification of customers: ( i ) Number of customers as of year-end ( ii ) Gallons sold ( iii ) Revenues b. Customers forfeited discounts and penalties and miscellaneous water revenues. RESPONSE Customers 2012 Revenue Residential ,800 Wastewater customers are billed at a flat rate, and not based on consumption. There were no wastewater customers or revenues in

7 THE YORK WATER COMPANY Exhibit No.HII-2W DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION Page 1 of 1 OPERATING REVENUES UNDER EXISTING AND PROPOSED RATES Witness: K M Miller TWELVE MONTHS ENDED DECEMBER 31,2012 OPERATING REVENUES SALES OF WASTEWATER UNDER EXISTING RATES UNDER PROPOSED RATES PRO FORMA HISTORIC RATES TWELVE TEST YEAR TWELVE MONTHS ADJUST MONTHS ENDED MENTS ENDED EXHIBIT REVENUE PERCENT (HII-2-4W) REFERENCE INCREASE INCREASE PRO FORMA (1) (2) (3) (4) (5) (6) (7) c.n RESIDENTIAL 46,800 65, , , % 213,718 COMMERCIAL INDUSTRIAL TOTAL SALES OF WASTEWATER 46,800 65, , , ,718 OTHER OPERATING REVENUES LATE CHARGES MISCELLANEOUS WASTEWATER REVENUES TOTAL OTHER OPERATING REVENUES TOTAL OPERATING REVENUES 46,800 65, , , % 213,718

8 Exhibit No. HII-2-4W Page 1 of 1 Witness: K M Miller THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION OPERATING REVENUE ADJUSTMENTS UNDER EXISTING RATES ACCOUNT (1) EXPLANATION (2) To annualize operating revenues for residential gravity customers acquired during the twelve months ended December 31, ADJUST MENT INCREASE DECREASE (3) Residential Gravity Customers as of December 31, Monthly Charge per Customer $ 40 Annualized Revenues for Residential Gravity Customers at Base Rates Effective May 10, 1999 (233*40*12) 111,840 Test year operating revenues recorded 46,800 Annualized Revenue Adjustment (111,840-46,800) 65, Metered Sales to Residential Customers 65,040

9 THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION STATEMENT OF PRO FORMA OPERATING EXPENSES UNDER EXISTING AND PROPOSED RATES FOR TWELVE MONTHS ENDED DECEMBER 31,2012 Wastewater Treatment Expenses Twelve Months Ended December 31,2012 (1) Exhibit Reference (2) Under Existing Rates Pro Forma Twelve Months Ended December Exhibit Exhibit No.HIII-2W Page 1 of 1 Witness: K M Miller Under Proposed Rates Pro Forma Twelve Months Ended December Adjustment 31,2012 Reference Adjustmen31, 2012 (3) (4) (5) (6) (7) Salaries & Wages- Treatment Operations Electric - Treatment Operations Materials & Supplies - Treatment Operations Materials & Supplies - Maint. of Treatment Structures Materials & Supplies - Maint. of Treatment Equipment Testing Services Outside Services - Treatment Operations Outside Services - Maint. of Treatment Structures Miscellaneous Exp - Treatment Operations Miscellaneous Exp. - Office & Utilities 923 5, ,733 2, Hlll-2-4 HIII-2-9W HIII-2-32W HIII-2-32W HIII-2-32W HIII-2-32W HIII-2-32W ,298 13,880 13, ,474 1, ,445 2,295 2,295 40,055 66,788 66,788 1,590 4,114 4, ,203 1,203 Total Wastewater Treatment Expenses 38,780 52,609 91,389 91,389 Wastewater General & Administrative Expenses General Liability Insurance Capitalized Overhead Allocation from Water 647 (5,608) 7,117 HIII-2-33W HIII-2-33W HIII-2-33W 1,207 1,854 1,854 (5,545) (11,153) (11,153) 4,985 12,102 12,102 Total Wastewater General & Administrative Expenses 2, ,803 2,803 Total Operating Expenses 40,936 53,256 94,192 94,192

10 Exhibit No. HIII-2-9W Page 1 of 1 Witness: K M Miller THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION OPERATING EXPENSE ADJUSTMENTS UNDER EXISTING RATES ACCOUNT EXPLANATION ADJUST MENT INCREASE DECREASE To annualize and adjust power purchased expenses for the twelve months ended December 31, 2012 to reflect actual generation and transmission rates, distribution rates and competitive transition rates effective March 1, Asbury Pointe Wastewater Treatment Plant 13,880 Less: Purchased Power Expense Twelve Months Ended December 31, ,582 Adjustment 8, Electric- Treatment Ops 8,298-8-

11 Exhibit No. HIII-2-32W Page 1 of 1 Witness: K M Miller THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION OPERATING EXPENSE ADJUSTMENTS UNDER EXISTING RATES ACCOUNT EXPLANATION ADJUST MENT INCREASE DECREASE To annualize treatment operating expenses for the wastewater system the Company acquired and began operating on August 1, Annual Treatment Materials and Supplies Less: Costs for the Twelve Months Ended December31, 2012 Adjustment Testing Services- $85 per, 27 times per year based on 2012 experience Less: Costs for the Twelve Months Ended December31, 2012 Adjustment Outside Services - Treatment Operations Septic Service - $ per load 32 loads per year based on 2012 Operator Cost- $4,313 per month Less: Outside Service costs recorded on the books for the Twelve Months Ended December 31,2012 Adjustment Outside Service-Maintenance Grass Mowing- $106 per, May- Oct Less: Grass Mowing recorded on the books for the Twelve Months Ended December31, 2012 Adjustment Office Expense & Utilities Network $82.32/month Garbage Service@ $53.85/quarter Less: Services recorded on the books for the Twelve Months Ended December 31, 2012 Adjustment 1, , ,445 15,032 51,756 26,733 40,055 2, , ,445 40,055 1, See Exhibit No. HIII-2-9W for the annualization of electric expenses Materials & Supplies Testing Services Outside Services- Treatment Operations Outside Service-Maintenance Office Expense & Utilities -9-

12 Exhibit No. HIII-2-33W Page 1 of 1 Witness: K M Miller THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION OPERATING EXPENSE ADJUSTMENTS UNDER EXISTING RATES ACCOUNT EXPLANATION ADJUST MENT INCREASE DECREASE To annualize general & administrative expenses for the wastewater system the Company acquired and began operating on August 1, General Insurance based on 2012 Property Insurance at.37% of total Less: Costs for the Twelve Months Ended December 31, 2012 Adjustment Capitalized Overhead Annualized 2012 Average Less: Capitalized Overhead costs recorded on books for the Twelve Months Ended December 31, 2012 Adjustment 1, ,207 (11,153) (5,608) (5,545) Overhead Allocation from Water based on annualized 2012 average Fringe Benefits for direct labor Indirect Labor & fringe Less: Costs for the Twelve Months Ended December 31, 2012 Adjustment 3,799 8,303 7,117 4, General Insurance Capitalized Overhead Overhead Allocation from Water 1,207 (5,545) 4,

13 Exhibit No. HIV-6W Page 1 of 1 Witness: ME Poff THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION TAXABLE NET INCOME UNDER EXISTING RATES FOR TWELVE MONTHS ENDED DECEMBER 31, Ill. Balance Sheet and Operating Statement D. All Utilities 6 Submit a schedule showing the adjustments for taxable net income per books (including below-the-line items) and pro forma under existing rates, together with an explanation of any differences between the adjustments. Indicate charitable donations and contributions in the tax calculation for ratemaking purposes. Response: Expenses Recorded on Books Not Deducted on Return Income on Books Not Included on Return Deductions Not Charged Against Booked Income Tax Depreciation in Excess of Depreciation Recorded on Books 49,937 49,937 Refer to Exhibit No. HIV-17-2W for adjustments to pro forma taxable income for the twelve months ended December 31, 2012 There are no charitable contributions included in the tax calculation for ratemaking purposes. -11-

14 THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PRO FORMA TAXES OTHER THAN INCOME TAXES UNDER EXISTING AND PROPOSED RATES FOR TWELVE MONTHS ENDED DECEMBER 31, 2012 Exhibit No. HIV-15W Page 1 of 1 Witness: T W Altland TAXES OTHER THAN INCOME TAXES Twelve Months Ended (1) Under Existing Rates Pro Forma Under Exhibit Existing Reference Adjustment Rates (2) (3) (4) Under Proposed Rates Pro Forma Under Exhibit Proposed Reference Adjustment Rates (5) (6) (7) I,... N Assessments Purta Fica Local Real Estate-County Local Real Estate-School Capital Stock Federal Unemployment State Unemployment Payroll Taxes Capitalized 589 (551) HIV-15-4W HIV-15-?W HIV-15-7W ,309 2,309 (551) HIV-15-6W 610 1, ,309 (551) 38 3,522 3, ,171

15 Exhibit No. HIV-15-4W Page 1 of 1 W~tness: T W Altland THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION OPERATING TAX OTHER THAN INCOME TAX ADJUSTMENTS UNDER EXISTING RATES ACCOUNT EXPLANATION To adjust Pennsylvania Public Utility Commission General Assessment, Consumer Advocate Assessment and Small Business Advocate Assessment based on pro forma revenues under existing rates for twelve months ended December 31, 2012 and assessment factors. Pro Forma Operating Revenues Under Existing Rates for the Twelve Months Ended December 31, ,840 Combined Pennsylvania Public Utility Commission, Consumer Advocate and Small Business Advocate General and Supplemental Assessment Factors Pro Forma Combined Pennsylvania Public Utility Commission, Consumer Advocate and Small Business Advocate General and Supplemental Assessments Under Existing Rates for the Twelve Months Ended December 31, 2012 ( 111,840 X ) 670 ADJUST MENT INCREASE DECREASE Less: Test Year Combined Pennsylvania Public Utility Commission, Consumer Advocate and Small Business Advocate General and Supplemental Assessments Taxes Other Than Income Taxes-Assessments

16 Exhibit No. HIV-15-6W Page 1 of 1 Witness: T W Altland THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION OPERATING TAX OTHER THAN INCOME TAX ADJUSTMENTS UNDER PROPOSED RATES ACCOUNT EXPLANATION To adjust Pennsylvania Public Utility Commission General Assessment, Consumer Advocate Assessment and Small Business Advocate Assessment based on pro forma revenues under proposed rates for twelve months ended December 31, 2012 and assessment factors. ADJUST MENT INCREASE DECREASE Pro Forma Operating Revenues Under Proposed Rates for the Twelve Months Ended December 31, 2012 Combined Pennsylvania Public Utility Commission, Consumer Advocate and Small Business Advocate General and Supplemental Assessment Factors 213, % Pro Forma Combined Pennsylvania Public Utility Commission, Consumer Advocate and Small Business Advocate General and Supplemental Assessments Under Proposed Rates for the Twelve Months Ended December 31, 2013 ( 213,718 X ) 1,280 Less: Pro Forma Combined Pennsylvania Public Utility Commission, Consumer Advocate and Small Business Advocate General and Supplemental Assessments for the Twelve Months Ended December 31, 2012 (Refer to Exhibit No. HIV-15-4W) Taxes Other Than Income Taxes-Assessments

17 Exhibit No. HIV-15-?W Page 1 of 1 Witness: T W Altland THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION OPERATING TAX OTHER THAN INCOME TAX ADJUSTMENTS UNDER EXISTING RATES ACCOUNT EXPLANATION -15- ADJUST MENT INCREASE DECREASE To adjust local real estate taxes for wastewater property acquired in 2012 based on the assessed value and current millage rates. Assessed Value of Wastewater Property County and Municipal Millage Rates County Tax to be Assessed School Millage Rates School Tax to be Assessed 95, ,309 Local real estate taxes assessed during the twelve months ended December 31, Adjustment 2, Local Real Estate-County Local Real Estate-School 543 2,309

18 THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION FEDERAL AND STATE INCOME TAXES UNDER EXISTING RATES FOR TWELVE MONTHS ENDED DECEMBER 31, 2012 AND ANTICIPATED FEDERAL AND STATE INCOME TAXES WHEN THE PROPOSED RATES BECOME EFFECTIVE Twelve Months Ended December 31, 2012 (1) Under Existing Rates Pro Forma Twelve Months Ended Exhibit Reference Adjustment December 31, 2012 (2) (3) (4) Exhibit No. HIV-17W Page 1 of 1 Witness: M E Poff Under Proposed Rates Pro Forma Twelve Months Ended Exhibit December Reference Adjustment 31,2012 (5) (6) (7) Current Federal Income Tax (13,444) Current State Income Tax Deferred Federal Income Tax-Accelerated Depreciation 16, Amortization of Investment Tax Credits HIV-17-2W 10,144 HIV-17-2W (1,355) HIV-17-3W (18,032) (3,300) (1,077) (1,053) HIV-17-5W 30,991 27,691 HIV-17-5W 10,117 9,039 (1,053) 3,813 (9,243) (5,430) 41,108 35,678

19 Exhibit No. HIV-17-2W Page 1 of 1 Witness: M E Poff THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION OPERATING INCOME TAX ADJUSTMENTS UNDER EXISTING RATES Adjustment Increase Account Explanation (Decrease) To adjust current Federal and state income tax for the twelve months ended December 31, 2012 based on pro forma taxable income under existing rates and current Federal and state income tax rates. Pro Forma Net Operating Income 14,088 Add: Amortization of Acquisition Adjustments Deduct: Cost of Removal State Tax Depreciation 4,824 Domestic Production Deduction Pro Forma Interest Expense (Interest Synchronization) 20,048 Pro Forma Taxable Income (10,785) Pro Forma State Income Tax at 9.99% (1,077) (1,077) Federal Bonus Depreciation in Excess of State Pro Forma Federal Taxable Income (9,707) Pro Forma Federal Income Tax at34% {3,300) Total Pro Forma Current Income Tax {4,378) Less: Test Year Current Income Taxes (13,166) 8, Current Federal Income Tax 10, Current State Income Tax (1,355) -17-

20 Exhibit No. HIV-17-3W Page 1 of 1 Witness: M E Poff THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION CALCULATION OF DEFERRED FEDERAL INCOME TAXES ON ASSETS OTHER THAN ASSETS CONSTRUCTED WITH TAXABLE CUSTOMERS ADVANCES AND CONTRIBUTIONS NOT SUBJECT TO WEIGHTED AVERA( RATE METHOD FOR THE TWELVE MONTHS ENDED DECEMBER 31,2012 Vintage Year (1) Method (2) Tax Depreciation (3) Normalized (Booked) Depreciation on Assets Placed in Service During the Years 1971 and After (4) Tax Depreciation Subject to IRS Deferral Requirements (5) 2012 Straight Line, Accelerated Cost Recovery System, Limited Accelerated Cost Recovery System and Alternative Depreciation System 4,824 7,920 (3,096) 4,824 7,920 (3,096) Deferred Federal Income Tax at 34% ( (3,096) X.34) (1,053) Less: Deferred Federal Income Tax For Twelve Months Ended December 31, ,979 (18,032) Deferred Federal Income Tax-Accelerated Depreciation (18,032) -18-

21 Exhibit No. HIV-17-5W Page 1 of 1 Witness: ME Poff THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION OPERATING INCOME TAX ADJUSTMENTS UNDER PROPOSED RATES ACCOUNT EXPLANATION To adjust current Federal and state income taxes based on pro forma revenue increase under proposed rates and current Federal and state income tax rates ADJUST MENT INCREASE DECREASE Proposed Operating Revenue Increase Less: Increase in Taxes Other Than Income Taxes Increase in State Taxable Income State Income Tax at 9.99% Increase in Federal Taxable Income Federal Income Tax at 34% 101, ,267 10,117 10,117 91,151 30,991 41, Current Federal Income Tax Current State Income Tax 30,991 10,117

22 Exhibit No. HIV-18W Page 1 of 1 Witness: ME Poff THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION DEBT INTEREST UTILIZED FOR INCOME TAX CALCULATIONS IV Taxes D. Water and Wastewater Utilities 18 State the amount of debt interest utilized for income tax calculations, and details of debt interest computations, under each of the following rate case bases; a. Actual test year. b. Annualized test year-end. c. Proposed test year -end. Response: Debt interest expense utilized for the income tax calculation reflected on the Company's corporate books for the twelve months ended December 31, 2012 is actual debt expense incurred during that period. Debt interest expense utilized for the income tax calculation on pro forma income for the twelve months ended December 31, 2012 shown on Exhibit No. HIV-17-2 is determined by reflecting the interest charges to ratepayers in the cost of capital determination (interest synchronization). Rate base 716,002 x weighted debt cost rate of = interest expense utilized for income tax calculations of 2.80% 20,

23 Exhibit No. HV-1W Page 1 of 3 Witness: T W Altland THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION MEASURE OF VALUE AND RATES OF RETURN AT ORIGINAL COST AS OF DECEMBER 31, V. Valuation D. Water and Wastewater Utilities 1. Provide a schedule showing the measures of value and the rates of return at the original cost in the current rate case. All claims made on this exhibit should be cross-referenced to appropriate exhibits. Response: The original cost measure of value and rate of return under proposed rates are shown below. Original Cost Measure of Value (1) Rate of Return Under Proposed Rates (2) 716,002 (a) 8.63% (b) (a) (b) Refer to page 2 for a detail of the measure of value. Refer to page 3 for a detail of the net operating income available for return and calculation of rates of return on the original cost measure of value. -21-

24 Exhibit No. HV-1W Page 2 of 3 Witness: T W Altland THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION SUMMARY OF MEASURE OF VALUE AS OF DECEMBER 31,2012 Elements (1) Exhibit Reference (2) Original Cost (3) Utility Plant in Service Less Accrued Depreciation HVI-W 716,002 Deduct: Deferred Federal Income Taxes Related to Accelerated Depreciation Contributions in Aid of Construction Less Accrued Depreciation Customers' Advances for Construction Less Accrued Depreciation Funds Supplied Through Customers' Advances Not Expended HV-1-1W HVI-W HVI-W Total Deductions Add: Materials and Supplies Cash Working Capital Utility Plant Acquisition Adjustments Total Additions Total Measure of Value 716,

25 THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION STATEMENT OF CALCULATION OF THE RATE OF RETURN UNDER EXISTING RATES FOR TWELVE MONTHS ENDED DECEMBER 31, 2012 AND THE ANTIC IPATED RATE OF RETURN WHEN THE PROPOSED RATES BECOME EFFECTIVE Exhibit No. HV-1W Page 3 of 3 Witness: T W Altland Twelve Months Ended December Exhibit 31,2012 Reference ( 1) (2) Under Existing Rates Under Proposed Rates Pro Forma Pro Forma Twelve Twelve Months Months Ended Ended December Exhibit December Adjustment 31,2012 Reference Adjustment 31,2012 (3) (4) (5) (6) (7) Operating Revenues 46,800 HII-2W 65, ,840 HII-2W 101, ,718 Operating Expenses, Depreciation and Taxes N w, Operating Expenses Depreciation Taxes Other Than Income Taxes Income Taxes 40,936 HIII-2W HI-2W 38 HIV-15W 3,813 HIV-17W 53,256 94,192 HIII-2W 18,612 18,612 3,522 3,560 HIV-15W (9,243) (5,430) HIV-17W 94,192 18, , '108 35,678 Total Operating Expenses, Depreciation and Taxes 44,787 66, ,934 41, ,652 Net Operating Income Available For Return 2,013 (1 '1 07) ,160 61,066 Measure of Value as of December 31, 2012 and Rates of Return (Refer to Page 2) 0.28% 0.13% 8.63% Original Cost Less Accrued Depreciation 716,002

26 Exhibit No. HV-1-1W Page 1 of 1 Witness: M E Poff THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION DEFERRED FEDERAL INCOME TAXES RELATED TO ACCELERATED DEPRECIATION AS OF DECEMBER 31, 2012 DEDUCTED FROM THE MEASURE OF VALUE Year (1) 2012 Deferred Federal Income Taxes (2) (1,053) Book depreciation was higher than tax depreciation for 2012, causing deferred income taxes to be negative. The 2012 difference represents a reversal of deferred tax prior to York Water's purchase. Therefore, the Company is not including the 2012 reversal amount as a rate base adjustment. -24-

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28 Docket No. R THE YORK WATER COMPANY WASTEWATER FUTURE TEST YEAR EXHIBITS

29 Exhibit No. F(a)-4W Page 1 of 1 Witness: K M Miller THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION EFFECT OF THE CHANGE ON THE UTILITY'S CUSTOMERS Applicability: public utilities other than canal, turnpike, tunnel, bridge and wharf companies. (a) Whenever a public utility, other than a canal, turnpike, tunnel, bridge or wharf company files a tariff, revision, or supplement effecting changes in the terms and conditions of service rendered or to be rendered, it shall submit to the Commission, with the tariff, revision or supplement, statements showing all of the following: (4) The effect of the change on the utility's customers. RESPONS Refer to the attached Notice of Proposed Rate Changes. - 1-

30 NOTICE OF PROPOSED RATE CHANGES Dear Customer: The York Water Company filed a request with the Pennsylvania Public Utility Commission (PUC) to increase your rates for water service, as well as wastewater service, as of August 1, A full investigation of this request could delay the change until March This notice describes the Company's rate request, the PUC's role, and what actions you can take. The Company has requested an overall rate increase for water service of $7.1 million per year. If the Company's entire request is approved, the typical water bill for: Residential gravity customers using 4,872 gallons per month would increase from $34.41 to $39.46 per month, or by 14.7%. Residential repumped customers using 3,928 gallons per month would increase from $40.91 to $46.91 per month, or by 14.7%. Commercial gravity customers using 28,788 gallons per month would increase from $ to $ per month, or by 12.6%. Commercial repumped customers using 40,718 gallons per month would increase from $ to $ per month, or by 13.1 %. Industrial gravity customers using 142,017 gallons per month would increase from $ to $ per month, or by 14.9%. Industrial repumped customers using 318,515 gallons per month would increase from $1, to $1, per month, or by 15.8%. The Company has also requested an increase in wastewater rates. If the Company's request is approved, the wastewater bill for: Asbury Pointe Subdivision customers would increase from $40.00 to $50.00 per month, or by 25.0%. The Company's filing with the PUC also requests to combine in part, the revenue requirement for the Company's wastewater operations with the Company's water operations as authorized by legislation enacted in To find out your customer class or how the requested increase may affect your water or wastewater bill, contact The York Water Company at The rates requested by The York Water Company for water customers may be found in Supplement No. 111 to Tariff Water-Pa. P.U.C. No. 14, and the rates requested by The York Water Company for wastewater customers may be found in Supplement No. 1 to Tariff Wastewater-Pa. P.U.C. No. 1. You may examine the material filed with the PUC which explains the requested increase and the reasons for it. A Copy of this material is kept at The York Water Company's office. Upon request,

31 the Company will send you the Statement of Reasons for Water Supplement No. 111 to Tariff Water-Pa. P.U.C. No. 14, and Wastewater Supplement No. 1 to Tariff Wastewater-Pa. P.U.C. No. 1, explaining why the rate increase has been requested. The state agency which approves rates for public utilities is the PUC. The PUC will examine the requested rate increase and can prevent existing rates from changing until it investigates and/or holds hearings on the request. The Company must prove that the requested rates are reasonable. After examining the evidence, the PUC may grant all, some, or none of the request, or may reduce existing rates. The PUC may change the amount of the rate increase or decrease requested by the utility for each customer class. As a result, the rate charged to you may be different than the rate requested by the Company as shown above. There are three ways to challenge a Company's request to change its rates: 1. You can file a formal complaint. If you want a hearing before a judge, you must file a formal complaint. By filing a formal complaint, you assure yourself the opportunity to take part in hearings about the rate increase request. All complaints should be filed with the PUC before August 1, If no formal complaints are filed, the Commission may grant all, some or none of the request without holding a hearing before a judge. 2. You can send us a letter telling why you object to the requested rate increase. Sometimes there is information in these letters that makes us aware of problems with the Company's service or management. This information can be helpful when we investigate the rate request. Send your letter or request for a formal complaint form to the Pennsylvania Public Utility Commission, Post Office Box 3265, Harrisburg, PA You can be a witness at a public input hearing. Public input hearings are held if the Commission opens an investigation of the Company's rate increase request and if there is a large number of customers interested in the case. At these hearings, you have the opportunity to present your views in person to the PUC judge hearing the case and the Company representatives. All testimony given "under oath" becomes part of the official rate case record. These hearings are held in the service area of the Company. The York Water Company

32 Exhibit No. F(b)-1W Page 1 of 1 Witness: K M Miller THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION SPECIFIC REASONS FOR PROPOSED INCREASE IN WATER AND WASTEWATER RATES (b) I (1) RESPONSE: Applicability; public utilities other than canal, turnpike, tunnel, bridge, and wharf companies Whenever a public utility other than a canal,turnpike, tunnel, bridge,or wharf company files a tariff, revision, or supplement which will increase or decrease the bills to its customers, it shall submit in addition to the requirements of subsection (a), to the Commission, with the tariff, revision or supplement, statements showing the following: The specific reasons for each increase or decrease. The York Water Company has prepared and filed the data required under Title 52, Pennsylvania Code, Sections and in support of the proposed rates. The supporting data for the tariff revision are for the twelve months ending February 28, 2015, or as of the close of the same twelve-month period, adjusted for ratemaking purposes. Despite the best efforts by The York Water Company to control costs, the effects of increased expenses and net additions to rate base have reduced returns. The specific reasons the Company proposes to increase its water and wastewater rates are as follows: (a) To provide sufficient revenues to recover the cost of providing water and wastewater service to its consumers; (b) To allow it to discharge properly its public duties by continuing to furnish an adequate, safe, and reliable level of service; (c) To maintain its facilities properly; and (d) To afford the opportunity to more nearly approach a fair and reasonable rate of return on the original cost measure of value of its property used and useful in rendering water and wastewater service. Also, please see the attached Statement of Reasons to be provided to customers upon request.

33 THE YORK WATER COMPANY Statement of Reasons For the 2013 Rate Increase Request The York Water Company (the "Company") is requesting Public Utility Commission ("PUC") approval for a rate increase for water customers of $7.1 million, and for wastewater customers of the Asbury Pointe Subdivision, a rate increase of $27,960 to begin August 1, It is possible the PUC may not approve any rate increase until March Our main reasons for the increase are as follows: The costs of serving our customers have gone up. During the past few years, we have taken steps to control our operating expenses. We have greatly increased the total plant investment from the level claimed in our last rate request in This increase of over $49 million (through February 2015) in system improvements since the last rate request includes the following major items: 1. Replacement, reinforcement and relining of aging water mains, replacement of customer services, meters and hydrants. 2. System monitoring and computer system upgrades. 3. Improvements to standpipes and pumping equipment. 4. Improvements to dams. 5. Upgrades to water and wastewater treatment equipment and facilities. These and similar projects, are important to our ability to give high quality service to our customers. The increase would allow the Company to recover costs for increases in wage and salary levels, increases in benefit expenses, increases in chemical and materials and supplies expenses and increased annual depreciation. In addition, the Company has reduced or eliminated some expenses since its last rate case. These reduced expenses are reflected in this rate filing. The increase would provide an opportunity for the Company to earn a fair return on the money it has invested in business operations and would assist the Company in maintaining a solid financial position. Please refer to the Company's Direct Testimony and Exhibits for additional reasons for and support of the requested rate increase.

34 Exhibit No. FI-2W Page 1 of4 Witness: K M Miller THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION STATEMENT OF INCOME I. D. 2 Statement of Income Water and Wastewater Utilities Prepare a Statement of Income for the various time frames of the rate preceding including: Col. 1 - Book recorded statement for the test year. 2 - Adjustments to book recorded statement to annualize and normalize under present rates. 3- Income statement under present rates after adjustment in CoL Adjustment to Col. 3 for revenue increase requested. 5- Income statement under requested rates. Response: Refer to pages 2 through

35 THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PROJECTED AND PRO FORMA STATEMENT OF INCOME UNDER EXISTING RATES FOR THE TWELVE MONTHS ENDING DECEMBER 31,2013 Exhibit No. FI-2W Page 2 of4 Witness: K M Miller Pro Forma Twelve Months Ended December Exhibit 31,2012 Reference (1) (2) Adjustment (3) Under Existing Rates Projected Pro Forma Twelve Twelve Months Months Ending Ending December Exhibit December 31, 2013 Reference Adjustment 31,2013 (4) (5) (6) (7) Operating Revenues 111,840 FII-2W 111,840 FII-2W 111,840 Operating Expenses, Depreciation and Taxes Other Than Income Taxes Wastewater Treatment Expenses 91,389 FIII-2W Administrative and General Expenses 2,803 FIII-2W General Price Level Adjustment FIII-2W Depreciation and Amortization 18,612 FI-2-1W Taxes Other Than Income Taxes 3,560 FIV-15W 19 1,569 8,442 91,408 FIII-2W 9 91,417 2,803 FIII-2W 2,803 1,569 FIII-2W 1,569 27,054 FI-2-1W 27,054 3,560 FIV-15W 3,560 *'" Total Operating Expenses, Depreciation and Taxes Other Than Income Taxes 116,364 10, , ,404 Net Operating Income Before Income Taxes (4,524) (10,030) (14,554) (9) (14,564) Income Taxes Current Federal Income Tax (3,300) FIV-17W Current State Income Tax (1,077) FIV-17W Deferred Federal Income Tax-Accelerated Depreciation (1,053) FIV-17W Total Income Taxes (5,430) Net Operating Income 906 Income Deductions Interest on Long Term Debt and Amortization of Debt Expense Interest on Bank Borrowings Interest Charged Construction (4,847) Miscellaneous Income Deductions Total Income Deductions (4,847) Net Income 5,753 (27,009) (1,534) 18,896 (9,647) (383) (383) (30,310) FIV-17W (3) (30,313) (2,611) FIV-17W (1) (2,612) 17,844 17,844 (15,077) (4) (15,081) 523 (6) 517 (4,847) (4,847) (4,847) (4,847) 5,370 (6) 5,364

36 THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PROJECTED AND PRO FORMA STATEMENT OF INCOME UNDER EXISTING RATES FOR THE TWELVE MONTHS ENDING FEBRUARY 28,2015 Exhibit No. FI-2W Page 3 of 4 Witness: K M Miller Pro Forma Twelve Months Ended December Exhibit 31,2013 Reference (1) (2) Operating Revenues 111,840 FII-2W Operating Expenses, Depreciation and Taxes Other Than Income Taxes Adjustment (3) Under Existing Rates Projected Pro Forma Twelve Twelve Months Months Ending Ending February Exhibit February 28,2015 Reference Adjustment 28, 2015 (4) (5) (6) (7) 111,840 FII-2W 111,840 Wastewater Treatment Expenses 91,417 FIII-2W Administrative and General Expenses 2,803 FIII-2W General Price Level Adjustment 1,569 FIII-2W Depreciation and Amortization 27,054 FI-2-2W Taxes Other Than Income Taxes 3,560 FIV-15W 43 2,235 (595) 91,460 FIII-2W 9 91,469 2,803 FIII-2W 2,803 3,804 FIII-2W 3,804 26,459 26,459 3,560 FIV-15W 3,560 Ul Total Operating Expenses, Depreciation and Taxes Other Than Income Taxes 126,404 1, , ,095 Net Operating Income Before Income Taxes (14,564) (1,683) (16,246) (9) (16,255) Income Taxes Current Federal Income Tax (30,313) FIV-17W Current State Income Tax (2,612) FIV-17W Deferred Federal Income Tax-Accelerated Depreciation 17,844 FIV-17W 21,408 (475) (21,522) (8,905) FIV-17W (3) (8,908) (3,087) FIV-17W (1) (3,088) (3,679) (3,679) Total Income Taxes (15,081) (589) (15,670) (3) (15,674) Net Operating Income 517 (1,093) (576) (5) (581) Income Deductions Interest on Long Term Debt and Amortization of Debt Expense Interest on Bank Borrowings Interest Charged Construction (4,847) Miscellaneous Income Deductions (4,847) (4,847) Total Income Deductions (4,847) (4,847) (4,847) Net Income 5,364 (1,093) 4,271 (5) 4,266

37 THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PRO FORMA STATEMENT OF INCOME UNDER PROPOSED RATES FOR THE TWELVE MONTHS ENDING FEBRUARY 28,2015 Exhibit No. FI-2W Page 4 of4 Witness: K M Miller Under Proposed Rates Pro Forma Pro Forma Twelve Twelve Months Months Ended Ending December Exhibit February 31,2013 Reference Adjustment 28,2015 (1) (2) (3) (4) Operating Revenues 111,840 FII-2W 123, ,820 Operating Expenses, Depreciation and Taxes Other Than Income Taxes Wastewater Treatment Expenses 91,469 FIII-2W 91,469 Administrative and General Expenses 2,803 FIII-2W 2,803 General Price Level Adjustment 3,804 FIII-2W 3,804 Depreciation and Amortization 26,459 26,459 Taxes Other Than Income Taxes 3,560 FIV-15W 3,560 0\ Total Operating Expenses, Depreciation and Taxes Other Than Income Taxes 128, ,095 Net Operating Income Before Income Taxes (16,255) 123, ,725 Income Taxes Current Federal Income Tax (8,908) FIV-17W 37,942 29,035 Current State Income Tax (3,088) FIV-17W 12,386 9,298 Deferred Federal Income Tax-Accelerated Depreciation (3,679) (3,679) Total Income Taxes (15,674) 50,328 34,654 Net Operating Income (581) 73,652 73,071 Income Deductions Interest on Long Term Debt and Amortization of Debt Expense Interest on Bank Borrowings Interest Charged Construction (4,847) (4,847) Miscellaneous Income Deductions Total Income Deductions (4,847) (4,847) Net Income 4,266 73,652 77,918

38 Exhibit No.FI-2-1W Page 1 of 1 Witness: T W Altland THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PROJECTED STATEMENT OF INCOME ADJUSTMENTS UNDER EXISTING RATES ACCOUNT EXPLANATION To project depreciation for twelve months ending December 31, 2013 using straight-line, remaining life depreciation. -7- ADJUST MENT INCREASE DECREASE Annual Depreciation Accrual Less; Pro Forma Depreciation for Twelve Months Ended December 31, 2012 (Refer to Exhibit No. HI-2-1W) 27,054 18,612 8, Depreciation 8,442

39 Exhibit No.FI-2-2W Page 1 of 1 Witness: T W Altland THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PROJECTED STATEMENT OF INCOME ADJUSTMENTS UNDER EXISTING RATES ACCOUNT EXPLANATION To project depreciation for twelve months ending February 28, 2015 using straight-line, remaining life depreciation. -8- ADJUST MENT INCREASE DECREASE Annual Depreciation Accrual Less; Pro Forma Depreciation for Twelve Months Ended December 31,2013 (Refer to Exhibit No. FI-2-1W) 26,459 27,054 (595) Depreciation (595)

40 Exhibit No.FII-2W Page 1 of 3 Witness: K M Miller THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION OPERATING REVENUES UNDER EXISTING AND PROPOSED RATES FOR TWELVE MONTHS ENDING FEBRUARY 28, II D. 2 Operating Revenues Water and Wastewater Utilities Prepare a summary of operating revenues for the test year, providing the following information: a. For each classification of customers and for customers forfeited discounts and penalties and miscellaneous water/wastewater revenues: ( i ) Revenues. ( ii ) Annualizing and normalizing adjustments to arrive at adjusted operating revenues for ratemaking. ( iii ) Proposed increase in operating revenues. ( iv ) Percent increase in operating revenues. ( v ) Operating revenues under proposed rates. RESPONSE Refer to pages 2 and

41 Exhibit No.FII-2W Page 2 of3 Witness: K M Miller THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION OPERATING REVENUES UNDER EXISTING RATES Wastewater Operating Revenues Exhibit Reference (1) Pro Forma Twelve Months Ended December 31, 2012 under existing rates (2) Annualizing and Normalizing Adjustments for the twelve months ending December 31, 2013 under existing rates HII-2W 111,840 0 (3) Projected and Pro forma Wastewater Operating Revenues for the twelve months ending December 31, 2013 under existing rates 111,840 (4) Annualizing and Normalizing Adjustments for the twelve months ending February 28, 2015 under existing rates 0 (5) Projected and Pro forma Wastewater Operating Revenues for the twelve months ending February 28, 2015 under existing rates 111,840 (6) Revenue Increase Required 123, % (7) Pro forma Wastewater Operating Revenues for the twelve months ending February 28, 2015 under proposed rates 235,

42 Exhibit No.FII-2W Page 3 of 3 Witness: K M Miller THE YORK WATER COMPANY REVENUE SUMMARY Total Company Water Wastewater Present Rate Revenues ( 1) $42,591,464 $42,479,624 $ 111,840 Additional Revenue Requirement (2) %Increase $ 7,144,352 $ 7,020, % $ 123, % """ """ Wastewater Revenue Allocation (3) $ $ 96,020 $ (96,020) Proposed Revenues $49,735,816 $49,596,016 $ 139,800 Revenue Increase %Increase $ 7,144,352 $ 7,116, % $ 27, % (1) As presented on Exhibit Nos. Fll-2 page 9 and FII-2W page 2. Includes DSIC and STAS revenues for water. (2) As calculated on Exhibit Nos. FV-1 page 6 and FV-1W page 6. (3) The wastewater allocation is the amount of the wastewater revenue requirement that the Company is proposing to be consolidated with the water revenue requirement to derive the proposed water and wastewater rates in this case.

43 Exhibit No.FII-3W Page 1 of 1 Witness: K M Miller THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PRESENT AND PROPOSED RATES II. D 3 Operating Revenue Water and Wastewater Utilities Provide a schedule of present and proposed tariff rates showing dollar change and percent of change by block. Provide increases to customers at various monthly uses showing billings at existing and proposed rates. Provide also an explanation of any change in block structure and the reason reason therefor. Provide a copy of the proposed tariff or tariff supplement. RESPONSE A comparison of the rate schedule set forth in the present and proposed tariffs is presented below. There are no proposed rule changes. The complete proposed tariff supplement is attached. Section 8 - Flat Rates Present Rates Proposed Rates Charge per residential dwelling unit $ $

44 The York Water Company York, Pennsylvania Supplement No. 1 To Wastewater- PA P.U.C. No. 1 THE YORK WATER COMPANY RATES, RULES AND REGULATIONS GOVERNING THE PROVISION OF WASTEWATER COLLECTION, TREATMENT AND/OR DISPOSAL SERVICE TO THE PUBLIC IN ASBURY POINTE RESIDENTIAL SUBDIVISION IN EAST MANCHESTER TOWNSHIP, YORK COUNTY, PENNSYLVANIA ISSUED: May 29, 2013 EFFECTIVE: August 1, 2013 By: Jeffrey R. Hines President and CEO 130 East Market Street York, Pennsylvania ~NOTICE THIS TARIFF MAKES INCREASES IN EXISTING RATES (See Second Revised Page No. 2) Issued: May 29, 2013 Effective: August 1, 2013

45 The York Water Company York, Pennsylvania Supplement No. 1 To Wastewater- PA P.U.C. No. 1 Second Revised page No. 2 Canceling First Revised page No. 2 LIST OF CHANGES INCREASES The flat rate per residential dwelling unit is increased by 25% from $40.00 per month to $50.00 per month. Issued: May 29, 2013 Effective: August 1, 2013

46 The York Water Company York, Pennsylvania Supplement No. 1 To Wastewater- PA P.U.C. No. 1 First Revised page No.3 Canceling Original page No. 3 TABLE OF CONTENTS Title Page List of Changes Table of Contents Part I Schedule of Rates and Charges Part II Definitions Part Ill Rules and Regulations Page No. Supplement No. 1 2 Second Revised 3 First Revised 5 First Revised 6 (C) (C) (C) (I) Section A -Applications for Service 10 Section B- Construction and Maintenance of Facilities 11 Section C- Discontinuance, Termination and Restoration of Service 12 Section D - Billing and Collection 14 Section E - Deposits 15 Section F - Wastewater Control Regulations 16 Section G - Line Extensions 20 Section H- Service Continuity 23 Section I - Waivers 23 (C) Indicates Change (I) Indicates Increase Issued: May 29, 2013 Effective: August 1, 2013

47 The York Water Company York, Pennsylvania PART 1: SCHEDULE OF RATES AND CHARGES Supplement No. 1 To Wastewater- PA P.U.C. No. 1 First Revised page No. 5 Canceling Original page No. 5 Section A - Rates for Metered Service 1. Customer Charge: Each customer will be assessed a customer service charge based upon the size of the customer's meter as follows: Customer Charge Meter Size Per Month Per Quarter %inch $ $ %inch $ $ 1 inch $ $ 1% inch $ $ 1% inch $ $ 2 inch $ $ 2. Consumption Charge: In addition to the customer charge, the following water consumption charges will apply: Consumption Per Month Per Quarter Rate per gals. First Next Over Gals. Gals. Gals. Gals. Gals. Gals. $ $ $ Section B - Flat Rates The charge per residential dwelling unit is a flat rate either per month or per quarter as follows: $50.00 per month per dwelling unit. (I) (I) Indicates Increase Issued: May 29, 2013 Effective: August 1, 2013

48 Exhibit No.FIII-2W Page 1 of4 Witness: K M Miller THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PRO FORMA OPERATING EXPENSES FOR TWELVE MONTHS ENDING FEBRUARY 28, 2015 UNDER EXISTING AND PROPOSED RATES Ill D. 2 Operating Expense Water and Wastewater Utilities Prepare a summary of operating expenses for the test year providing annualizing and normalizing adjustments to arrive at adjusted operating expenses for ratemaking, including supporting data. RESPONSE Refer to Pages 2 through

49 THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION STATEMENT OF PROJECTED AND PRO FORMA OPERATING EXPENSES UNDER EXISTING AND PROPOSED RATES FOR TWELVE MONTHS ENDING DECEMBER 31,2013 Exhibit No.FIII-2W Page 2 of4 Witness: K M Miller Pro Forma Twelve Under Existing Rates Months Projected Pro Forma Ended Twelve Twelve December Months Months 31,2012 Ending Ending (Refer to Exhibit December Exhibit December Exh No. HIII-2W) Reference Adjustment 31,2013 Reference Adjustment 31,2013 (1) (2) (3) (4) (5) (6) (7) Wastewater Treatment Expenses Salaries & Wages- Treatment Operations 956 Flll Flll Electric- Treatment Operations 13,880 13,880 13, Materials & Supplies - Treatment Operations 1,474 1,474 1,474 I Materials & Supplies - Maint. of Treatment Structures Materials & Supplies - Maint. of Treatment Equipment ~ Testing Services 2,295 2,295 2, Outside Services- Treatment Operations 66,788 66,788 66, Outside Services - Maint. of Treatment Structures 4,114 4,114 4, Miscellaneous Exp - Treatment Operations Miscellaneous Exp. - Office & Utilities 1,203 1,203 1,203 Total Wastewater Treatment Expenses 91, , ,417 Wastewater General & Administrative Expenses General Liability Insurance 1,854 1,854 1, Capitalized Overhead (11,153) (11,153) (11,153) Allocation from Water 12,102 12,102 12,102 Total Wastewater General & Administrative Expenses 2,803 2,803 2,803 General Price Level Adjustment FIII-2-4W 1,569 1,569 1,569 Total Operating Expenses 94,192 1,588 95, ,789

50 THE YORK WATER COMPANY DATA REQUIREMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION STATEMENT OF PROJECTED AND PRO FORMA OPERATING EXPENSES UNDER EXISTING RATES FOR TWELVE MONTHS ENDING FEBRUARY 28,2015 Exhibit No.FIII-2W Page 3 of 4 Witness: K M Miller Pro Forma Twelve Months Ending December 31,2013 (1) Under Existing Rates Projected Twelve Months Ending Exhibit February Reference Adjustment 28,2015 (2) (3) (4),... (.Jl Wastewater Treatment Expenses Salaries & Wages - Treatment Operations Electric- Treatment Operations 13, Materials & Supplies - Treatment Operations 1, Materials & Supplies - Maint. of Treatment Structures Materials & Supplies - Maint. of Treatment Equipment Testing Services 2, Outside Services - Treatment Operations 66, Outside Services - Maint. of Treatment Structures 4, Miscellaneous Exp - Treatment Operations Miscellaneous Exp. - Office & Utilities 1,203 Total Wastewater Treatment Expenses 91,417 Wastewater General & Administrative Expenses General Liability Insurance 1, Capitalized Overhead (11,153) Allocation from Water 12,102 Total Wastewater General & Administrative Expenses 2,803 General Price Level Adjustment 1,569 Total Operating Expenses 95,789 Flll ,028 13,880 1, ,295 66,788 4, , ,460 1,854 (11,153) 12,102 2,803 FIII-2-28W 2,235 3,804 2,278 98,067