June 29, Annua! Depreciation Report for The York Water Company

Transcription

1 ^Gannett Fleming ^ S Your Trusted Advisor Since 1915 GANNETT FLEMING, INC. P.O. Box 671 Harrisburg, PA Location: 27 Senate Avenue Camp Hill, PA 1711 Office: (717) Fax: (717) vvww.gannettfleming.com June 29, 21 Rosemary Chiavetta, Secretary Pennsylvania Public Utility Commission P. O. Box 3265 Harrisburg, PA 1715 Dear Secretary Chiavetta: RECEIVED JUN 2 9 ZOIO PA PUBLIC UTILITY COMIVIISSION SECRETARY'S BUREAU Annua! Depreciation Report for The York Water Company Enclosed for fiiing on behalf of The York Water Company are three (3) copies ofthe 21 Annual Depreciation Report. This report is filed pursuant to the regulations at 52 Pa. Code Section 73.9(a). Copies ofthe report also have been mailed to the Office of Consumer Advocate, Office of Small Business Advocate and Office of Trial Staff. Respectfully submitted, GANNETT FLEMING, INC. JJS:krm Enclosure JOHN J. SPANOS Vice President Valuation and Rate Division cc: Irwin A. Popowsky, Esq. (w/enc(.-1) William Lloyd, Esq. (w/encl.-1) Johnnie Simms (w/enci.-1) Kathy Miller (w/encl-4) Michael Hassell, Esq. (w/encl-1) A Tradition of Excellence

2 ANNUAL DEPRECIATION REPORT TO THE PENNSYLVANIA PUBLIC UTILITY COMMISSION (CODE21355-ADR-21) JUNE 21 RECEIVED JUN 2 9 ZOIO PA PUBLIC UTIUTY COMMISSION SECRETARY'S BUREAU

3 - ANNUAL DEPRECIATION REPORT TO THE PENNSYLVANIA PUBLIC UTILITY COMMISSION (CODE ADR-21) JUNE 21 EXECUTIVE SUMMARY This report is prepared in response to the requirements related to the monitoring of depreciation practices set forth in 52 Pa. Code Chapter 73, Section 3 by the Pennsylvania Public Utility Commission. In accordance with the requirements, the report presents a comparison of annual and accrued depreciation by function at December 31, 27, December 31, 28 and December 31, 29; a calculation of remaining life depreciation accrual rates as of December 31, 29; the 29 retirements expressed as a percent of original cost; a summary of the depreciation reserve activity, including the reserve as a percent of original cost; an explanation of any unusual retirements; the net salvage amortization amountfor21 based on 25 through 29 experience; and an explanation of exclusions from the experienced net salvage. The annual accrual rate calculations were based on the results of a service life study that incorporated data through 26 and was submitted in the Company's rate case in DocketNo. R The annual accrual rate calculations summarized herein used the service life and survivor curve estimates that resulted from this study, and also used the same group procedures and bases as those approved by the Pennsylvania Public Utility Commission in Docket No. R Table 1 sets forth a comparison ofthe original cost, book reserve and calculated annual depreciation accruals by function at December 31, 27, December 31, 28 and -1 -

4 December 31, 29. The annual accrual amounts, as summarized, are presented as a percent of original cost for each function and for the total company. The composite annual depreciation accrual rate for Source of Supply Plant is basically unchanged from December 31, 27 through December 31, 29. The overall composite annual depreciation accrual rate for Power and Pumping Plant and Equipment increased from December 31, 27 through December 31, 29. The increased composite rate from December 27 to December 28 is due to the new addition into Account 31.2, Power Generation Equipment-Pumping. The composite rates increased from 28 to 29 due to the growth in Account 34.2, Power and Pumping Structures, andaccount311, Electric Pumping Equipment. The overall composite annual depreciation accrual rate for Purification Plant and Equipment increased from December 31, 27 through December 31, 29. The increased rate from December 31, 27 to December 31, 28 was due to the high additions related to the filter upgrade in Account 32.1, Purification System - Filters, Basins and Piping. The composite rate decreased slightly from December 31,28 to December 31,29 due to the lack of growth and higher plant to reserve ratio. The composite rate for Storage and Distribution Plant is basically unchanged from 27 to 29. The overall composite annual depreciation accrual rate for Office Building and Equipment increased from December 31, 27 through December 31, 29. The increased rate from December 31, 27 to December 31, 28 is due to the growth in the short lived asset classes. The composite rate from December 28 to December 29 is basically unchanged. The composite rate for Stores, Shop and Garage Equipment increased slightly from December 31, 27 to December 31, 28, due to the growth in Account 34.62, Stores, Shop and Garage Equipment. The composite rate -2-

5 decreased slightly from December 31, 28 to December 31, 29, due to the lack of growth and higher reserve to plant ratio. Table 2 summarizes the calculated annual depreciation accrual rates and book depreciation reserve by account at December 31, 29. Tables 3 and 4 present a summary of the plant and reserve activity, respectively, for 29. A review of any unusual entries is set forth in the section "29 Plant and Reserve Activity," on page 9. Table 5 sets forth the net salvage accruals for 21 as determined by the average of the prior fiveyear period, REMAINING LIFE DEPRECIATION ACCRUAL RATES The annual depreciation accrual rates to be used in 21 are calculated as of December 31, 29, and based on the straight line remaining life method using the equal life group procedure. The annual depreciation accrual rates for depreciable plant as of December 31, 29, are set forth in column 8 in Table 2 on pages 13 through 16. The annual accrual rate for depreciable plant equals the pro forma annual accrual in column 6 divided by the original cost in column 3. For the purpose of calculating the composite remaining life accrual rates as of December 31, 29, the book reserve foreach plant account is allocated among vintages in proportion to the calculated accrued depreciation for the account as of December 31, 29, underthe four percent compound interest method through 1985 and the straight line method subsequent to Explanations of remaining life accruals and calculated accrued depreciation follow. An example of the calculation is presented on pages 4 through 7. -3

6 ACCOUNT 3 31 T & D MAINS - CAST IRON, 6 INCH AND 8 INCH CALCULATED REMAINING LIFE DEPRECIATION ACCRUAL RELATED TO ORIGINAL COST AT DECEMBER 31, 29 ORIGINAL CALCULATED ALLOC. BOOK FUT. BOOK REM. ANNUAL YEAR COST ACCRUED RESERVE ACCRUALS LIFE ACCRUAL (1) (2) (3) (4) (5) (6) (7) SURVIVOR CURVE.. IOWA 11-R , , , , , , , , , , , , , , , , , , , , , , , , , ,13.3 4, , , , , ,325 1,482 2,691 1, ,838 1, , ,916 2,199 3,413 3,16 8,315 3, 762 8, ,174 8,34 1,335 2,476 3,358 2, 818 3,366 2,77 1,428 2,123. 2, , 731 2, ,297 1,469 2,668 1, ,814 1, , , 9 2,18 3,384 3,8 8,245 3,73 8,764 16,37 8,269 1,324 2,455 3,33 2,794 3,338 2,59 1,416 2,15 2, , 716 2, , , , 81 1, , ,515 1,583 2,77 2,639 6,466 3,287 8,63 13,547 7, 81 1,34 2,232 3,16 2, 944 3,259 2,92 1,597 2,27 2, ,1 3,

7 ACCOUNT 331 T&D MAINS - CAST IRON, 6 INCH AND 8 INCH CALCULATED REMAINING LIFE DEPRECIATION ACCRUAL RELATED TO ORIGINAL COST AT DECEMBER 31, 29 ORIGINAL CALCULATED ALLOC. BOOK FUT. BOOK REM. ANNUAL YEAR COST ACCRUED RESERVE ACCRUALS LIFE ACCRUAL (1) (2) (3) (4) (5) (6) (7) SURVIVOR CURVE.. IOWA 11-R , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,44 8, 274 9,28 12,278 14,524 7,81 4, 899 8, 742 5,72 12,38 14, ,147 5,61 2, 78 9,372 9, ,687 17,745 22,26 6,939 5, ,398 27,127 18,82 8,513 19,621 22,484 13,792 68,64 62,476 53,949 42,182 25,36 34,521 41,863 3,375 8,24 8, ,174 14,41 7, 735 4,858 8, 668 5, ,936 14, , 129 5, 554 2, 685 9,293 9,881 13, ,595 21,84 6,88 5, ,318 26,897 18,643 8, ,455 22,294 13,675 68,59 61,947 53,492 41,825 25,145 34,229 41,59 3,83 1,228 11,556 16,275 19,126 1,63 6,9 11,629 8,34 18,54 2, ,527 8, 72 4, ,335 16,455 23,292 31,88 41,82 12,518 1, ,454 54,761 39,14 16,866 41,88 49,311 31,45 147, ,72 127,972 12,685 58,967 82,317 17, , , ,889 2, 647 2,414 1, 91 1,94 1,5 1,92-5-

8 .. ACCOUNT 331 T & D MAINS - CAST IRON, 6 INCH AND 8 INCH CALCULATED REMAINING LIFE DEPRECIATION ACCRUAL RELATED TO ORIGINAL COST AT DECEMBER 31, 29 YEAR (1) ORIGINS ^L COST (2) Ci ULULATED ACCRUED {3} ALLOC. BOOK RESERVE (4) FUT. BOOK ACCRUALS (5) REM. LIFE (6) ANNUAL ACCRUAL (7} SURVIVOR CURVE.. IOWA 11-R , , , , , , , , , , , , , , ,375.,75 15,54,.75 9,499, , ,156,.14 32,855,.88 29, ,177, ,324, ,537, ,31,.48 28,41,.92 1,11,524,.9 539, ,64,,96 1,78, ,132, ,239, , , , ,668, , , , ,814 19,726 39,474 23,442 73,773 34,486 31,411 27,784 21,69 46,72 66,59 99,932 24,565 3,79 59,526 24,77 2,878 5,868 32,269 71,39 45,863 43, ,148 9,171 49,596 48,531 26, ,328 93, ,4 42,81 231, , , , , ,71 72,212 91,465 49,392 19,559 39,14 23,244 73,149 34,194 31,145 27,549 21,426 45,682 65,5 99,86 24,357 3,529 59,22 24,56 2,71 5,437 31,996 7,786 45,475 42, ,55 89,48 49,176 48,12-258,764 12,31 92,44 221,59 416, ,66 123, ,28 132, , ,747 71,61 9,691 13,898 49,534 11,587 61,784 28,964 93,391 87,119 78,91 62, ,65 196,744!34,517 76,568 12,991 19,354 8,981 69, , ,16 25,7 164, ,49 56, ,129 29, , , , , , ,863 1,9, ,173 71, ,69 1,424, ,34 489,53 681, ' , , 759 1,51 3,497 1,565 1,436 1,279 1, 2 2,255 3,94 4,715 1,167 1, 547 2, 861 1,199 1,18 2,621 1,675 3,547 2,295 2,281 6,887 4,818 2,87 3,72 11,134 5,46 4,344 1,92 21,583 12,542 7,131 8,712 8,615 17,47 8,434 5,782 7,959-6-

9 THE.YORK WATER COMPANY, ACCOUNT 331 T & D MAINS - CAST IRON, 6 INCH AND 8 INCH CALCULATED REMAINING LIFE DEPRECIATION ACCRUAL RELATED TO ORIGINAL COST AT DECEMBER 31, 29 ORIGINAL CALCULATED ALLOC. BOOK FUT. BOOK REM. ANNUAL YEAR COST ACCRUED RESERVE ACCRUALS LIFE ACCRUAL (1) (2) (3) (4) (5) (6) (7) SURVIVOR CURVE.. IOWA 11-R ,92, ,21, , , , ,671, ,677, ,232, ,36, ,52, ,231, , ,644 66,434 74,354 6,63 95, , ,55 114,115 33,42 6,773 24,, 9 116,,648 65,,872 73,, 725 6,,9 94,, ,,565 19,, ,,149 32,, 762 6,,716 1,,698,, 244 1,,85,, ,, ,, ,,4 1,,577,,82 2,,551,,743 5,,41,,426 4,,193,,69 2,,19,,559 1,,224,, ,615 12,389 7,823 9,921 9,33 17,397 28,125 54,959 45,656 21,964 13,422 43,257, ,376,1 5,33,,595 37,, 927,,4 464,263 COMPOSITE REMAINING LIFE AND ANNUAL ACCRUAL RATE, PCT

10 In the equal life group procedure, the remaining life annual accrual for each vintage is determined by dividing future book accruals (original cost less book reserve) by the composite remaining life for the surviving original cost of that vintage. The composite remaining life is derived by compositing the individual equal life group remaining lives in accordance with the following equation: ^.f Book Cost,. F ] 2, rz x Remaining Life Composite Remaining Life = ' e Book Cost ^ Life The book costs and lives of the several equal life groups which are summed in the foregoing equation are defined by the estimated survivor curve. Inasmuch as book cost divided by life equals the whole life annual accrual, the foregoing equation reduces to the following form: y]whole Life Future Accruals Composite Remaining Life = -^ 2jWhole Life Annual Accruals. or VSoo/cCosf - Ca/c. Reserve Composite Remaining Life = ^ 2^Whole Life Annual Accrual. The annual accrual rate for each account is equal to the sum of the remaining life annual accruals divided by the total original cost. The composite remaining life is calculated by dividing the sum of the future book accruals by the sum of the remaining life annual accruals. -8-

11 29 PLANT AND RESERVE ACTIV1TY Tables 3 and 4 on pages 17 through 22 present summaries by account of the plant and reserve accounting activity for 29. Table 3 sets forth the original cost as of December 31, 28, the beginning balance; additions; acquisitions; retirements; adjustments; the balance at the end of the year, December 31, 29; and the retirements expressed as a percent ofthe beginning plant balance. There were large percent additions in Account 34.2, Power and Pumping Structures; Account 33., Distribution Reservoirs and Standpipes; Account 331.2, Mains and Accessories - Cast Iron - 6 Inch and 8 Inch; Account 331.7, Mains and Accessories - Valves and Valve Boxes; Account , Mains and Accessories - Cleaning and Lining; Account 333., Services; Account 334., Meters; Account 336., Backflow Preventers; and Account 346., Communication Equipment. The large addition in Account 34.2 was primarily the result ofthe new booster stations at Northwest, Irishtown Road and West Manheim. The large addition for Account 33., is a result of the construction of the new East Berlin Road standpipe. The large addition for Accounts 331.2, 331.7, and 333. is due to the new lines being placed into service as well as replacements of other lines. The large addition in Account 334. was the result ofthe continued program to install radio frequency meters as compared to the old standard meters. The large addition for Account 336. was due to the installation of more backflow preventers. The large addition in Account 346. is the result of the SCADA Equipment being installed at many ofthe booster stations and standpipes. There were large percentage retirements in Account 331.1, Mains and Accessories -Cast Iron Mains - 4" and Under; Account , Mains and Accessories - Emergency -9-

12 Bypass Piping; and Account 34.2, Office Furniture and Equipment - Equipment, during 29 as a result'of eliminating old and no longer useful assets and replacing them with assets better suited for current operations. ' Table 4 on pages 2 through 22 sets forth the book depreciation reserve balance at the beginning of the year, December 31, 28; annual accruals; retirements; gross salvage; cost of removal; acquisitions; adjustments; the balance at the end of the year, December 31, 29; and the book reserve as a percent of the plant balance as of December 31, 29. AMORTIZATION OF NET SALVAGE The 21 amortization amount for experienced negative net salvage is $183,695 based on the experienced negative net salvage during the five-year period, 25 through 29. The calculation of the amortization amount by plant account is set forth in Table 5, on page 23. The tabulation sets forth the gross salvage, cost of removal, net salvage and the amortization amount which is one-fifth ofthe total negative net salvage for the five-year period. -1-

13 TABLE 1. ORIGINAL COST, BOOK RESERVE AND CALCULATED ANNUAL DEPRECIATION ACCRUALS BY FUNCTION RELATED TO WATER PLANT AT DECEMBER 31, 27, DECEMBER 31, 28 AND DECEMBER 31, INTANGIBLE & NON DEPRECIABLE PLANT WATER RIGHTS ORGANIZATION LAND OTHERS TOTAL NON DEPRECIABLE PLANT 39, ,32.9 2,529, , ,579, , ,32.9 2,579, , ,629, , ,32.9 2,72,12.6 4, ,77,24.51 SOURCE OF SUPPLY PLANT ORIGINAL COST (DEPRECIABLE) BOOK ACCRUED DEPRECIATION BOOK RESERVE % OF ORIGINAL COST ORIGINAL COST DEPRECIATED ANNUAL DEPRECIATION EXPENSE ANNUAL % OF ORIGINAL COST 7.963, ,191, % 6,771, , % 8, ,327, % 6,77, , % 8,6, ,455, % 6,64, ,5 1.59% POWER & PUMPING PLANT & EQUIPMENT ORIGINAL COST (DEPRECIABLE) BOOK ACCRUED DEPRECIATION BOOK RESERVE % OF ORIGINAL COST ORIGINAL COST DEPRECIATED ANNUAL DEPRECIATION EXPENSE ANNUAL % OF ORIGINAL COST 11,425, ,15, % 9,32,489 33, % 12,414, ,49, % 1,5,15 34, % 13,472, ,876, % 1,596, , % PURIFICATION PLANT & EQUIPMENT ORIGINAL COST (DEPRECIABLE) BOOK ACCRUED DEPRECIATION BOOK RESERVE % OF ORIGINAL COST ORIGINAL COST DEPRECIATED ANNUAL DEPRECIATION EXPENSE ANNUAL % OF ORIGINAL COST 5,33,83.7 2,359, % 2,971,566 14, % , ,464, % 1,257,42 45, % 12,774, ,885, % 9,889, , % STORAGE & DISTRIBUTION PLANT ORIGINAL COST (DEPRECIABLE) BOOK ACCRUED DEPRECIATION BOOK RESERVE % OF ORIGINAL COST ORIGINAL COST DEPRECIATED ANNUAL DEPRECIATION EXPENSE ANNUAL % OF ORIGINAL COST 134,71, ,775, % 112,925,931 2,169, % 154,335, ,671, % 13,664,364 2,456, % 169,586, ,536, % 144,5,215 2,656, % OFFICE BUILDING & EQUIPMENT ORIGINAL COST (DEPRECIABLE) BOOK ACCRUED DEPRECIATION BOOK RESERVE % OF ORIGINAL COST ORIGINAL COST DEPRECIATED ANNUAL DEPRECIATION EXPENSE ANNUAL % OF ORIGINAL COST 7,6, ,684, % 5,915,573 67, % 8,3, , % 5,794,354 67, % 8,32, ,872, % 5,43,7 693, % -11 -

14 TABLE 1. ORIGINAL COST, BOOK RESERVE AND CALCULATED ANNUAL DEPRECIATION ACCRUALS BY FUNCTION RELATED TO WATER PLANT AT DECEMBER 31, 27, DECEMBER 31, 28 AND DECEMBER 31, TRANSPORTATION EQUIPMENT ORIGINAL COST (DEPRECIABLE) BOOK ACCRUED DEPRECIATION BOOK RESERVE % OF ORIGINAL COST ORIGINAL COST DEPRECIATED ANNUAL DEPRECIATION EXPENSE ANNUAL % OF ORIGINAL COST 1,29, , % 538,717 1,283, % 523,792 1,275, , % 277,295.%.%.% STORES, SHOP, GARAGE & EQUIPMENT ORIGINAL COST (DEPRECIABLE) BOOK ACCRUED DEPRECIATION BOOK RESERVE % OF ORIGINAL COST ORIGINAL COST DEPRECIATED ANNUAL DEPRECIATION EXPENSE ANNUAL % OF ORIGINAL COST 3,13, , % 2,285, , % 3.478, , % 2,48, , % 3,493, ,139, % 2.354,526 13, % TOTAL COMPANY ORIGINAL COST (DEPRECIABLE) BOOK ACCRUED DEPRECIATION BOOK RESERVE % OF ORIGINAL COST ORIGINAL COST DEPRECIATED ANNUAL DEPRECIATION EXPENSE ANNUAL % OF ORIGINAL COST 171,362, ,632, % 14,729,974 3,465, % 2,272, ,838, % 166,433,135 4,177, % 216,967, ,763, % 179,23,528 4,425, % TOTAL PLANT IN SERVICE 173,941, ,91, ,737,

15 Table 2. Estimated Survivor Curves, Original Cost, Book Reserve and Calculated Annual Depreciation Accruals Related to Utility Plant at December 31, 29 Depreciable Group (D Survivor Curve Original Cost at December 31, 29 Annual Accrual Amount Composite Remaining Life Annual Accrual Rate, Percent Book Future Reserve Accruals (2) (3) (4) (5) (6} (7) (8) Intangible Plant Organization Franchises and Consents Nondepr. Nondepr , Total Intangible Plant 1,22.1 Nondepreciable Plant W Water Rights Reservoir Land Power and Pumping Land Purification Land Transmission and Distribution Land and Rights of Way Distribution Reservoir and Standpipe Land Office Land Stores, Shop and Garage Land Nondepr. Nondepr. Nondepr. Nondepr. Nondepr, Nondepr. Nondepr. Nondepr. 39, ,12, , , , , Tote/ Nondepreciable Plant 2,952, Depreciable Plant Other Water Source Structures 34.2 Power and Pumping Structures 34.3 Purification Buildings Office Buildings Stores, Shop and Garage Buildings Miscellaneous Slructures and Improvemenls 35 Collecting and Impounding Reservoirs 36 Lake, River and Other Intakes 37 Welis and Springs 39 Supply Mains 31,2 Power Generation Equipment/Pumping 31.7 Oil Engine Pumping Equipment 311 Electric Pumping Equipment Pumping Equipment SCADA Equipment Square ' Various * 15-R1 Square * Square Square Square * Square 4-R R3 3-R2.5 Square 4-R1.5 1-SQ 134, ,527, ,25,24 1,167, ,483, , ,132, , , , ,81, ,228, , ,824 1,199, ,4 433, , ,982 2, ,49 697,218 38,3 17,356 7,327,853 1,463, ,812 1,89, ,567 3, , , ,437 43,522 1,78, , ,772 43, ,62 15,142 49, ,196 18,97 56,922 71,4 65, , Total Account ,53,83 1.5,518 1,923, ,263

16 Table 2. Estimated Survivor Curves, Original Cost, Book Reserve and Calculated Annual Depreciation Accruals Related to Utility Plant at December 31, 29 Depreciable Group (D Survivor Curve Original Cost at December 31, 29 Book Reserve Future Accruals Annual Accrual Amount (2) (3) (4) (5) (6) Composite Remaining Life (7) Annual Accrual Rate, Percent (8) Depreciable Plant, cont. 32 Purification System Filters, Basins and Piping Chemical Treatment Equipmenl Electronic Control Equipment 15-R1 * 9, ,654,537 7,431,15 32, L1.5 1, , , L2.5 6, ,916 45, ' Total Account 32 1,716, , ,415,39 395,36 33 Distribution Reservoirs and Standpipes Various 331 Transmission and Distnbution Mains Cast Iron Mains - 4 Inch and Under 1-R3 Cast Iron Mains - 6 Inch and 8 Inch 11-R3 Cast Iron Mains - 1 Inch and Over 11-R3 Transite 8-R3 Concrete 1-R4 Steel 6-R4 Valves and Valve Boxes 9-R3 Copper, Plastic and Galvanized 65-R2 Vaults 1-SQ Venturi Tubes 4-L1 Emergency Bypass Piping 5-6Q Metering Equipment 27-1 Cleaning & Lining 6-L4 17,422, , , , , , ,7,848 14,274 5, , , ,48 88,648 88, , , ,462 12,721, ,334 37,927,4 72,96,75 191, ,177 1,115,54 8,13, ,86 77, ,6 114,38 2,911,618 44,9 8, , ,358 23, ,54 5, ,452 56, i il Total Account ,738, ,262, ,475,776 1,549, Services Meters Fire Hydrants Backflow Preventers Office Furniture and Equipment Furniture Equipment Mail Machine Computer Enterprise Software 75-R3 34-R3 75-R3 4-R1.5 3-SQ 1-SQ 1-SQ 5-SQ 1-SQ , , ,79, , , , , , ,655 99,66 23,78 15,953 44, , , ,474 11,362,784 4,881,34 233,925 9, , ,848,14 474,98 533,258 91,87 9, ,66 3,99 41, , Total Account , ,198,753 4,142, ,535

17 Table 2. Estimated Survivor Curves, Original Cost, Book Reserve and Calculated Annual Depreciation Accruals Related to Utiiity Plant at December 31, 29 Depreciable Group (D Survivor Curve Original Cost at December 31, 29 Book Reserve Future Accruals Annual Accrual Amount Composite Remaining Life Annual Accrual Rate, Percent (2) (3) (4) (5) (6) (7) (8) Depreciable Plant, cont. 341 Transportation Equipmenl Cars Trucks Total Account , , , ,295 * * ** 342 Stores Equipment Other Towmotor 3-SQ 7, , ,85 4,731 1,388 2,284 ** Total Account , ,397 51,119 2,284 (Ji Shop Equipment Tools and Work Equipment Tractor and Equipment Laboratory Equipment Power Operated Equipment Communication Equipment Miscellaneous Equipment 3-SQ 25-SQ 2-SQ 22-S1 15-SQ 15-SQ 48, ,475;55 34, , ,945,53 798, , , ,294 27,779 79, ,89 115,583 32, ,938 3,77 17,782 34, ,943 81,192 1,429 25, ,799 " 5,774 11, Total Depreciable Plant 257,239, ,516,21 213,723,563 4,854,373 Total Utility Plant in Service 26,22, ,516,21 213,723,563 4,854,373 Customers' Advances for Construction 34.2 Power and Pumping Structures Square 311 Electric Pumping Equipment 4-R Distribution Reservoirs and Standpipes Square 331 Transmission and Distnbution Mains Cast Iron Mains - 6 Inch and 8 Inch 11-R ,44,95 158, , ,478 19, ,22 3,84, ,573 12,729 12,21, ,89 Total Customers' Advances for Construction 15,521, ,266,45 12,254, ,28

18 Table 2. Estimated Survivor Curves, Original Cost, Book Reserve and Calculated Annual Depreciation Accruals Related to Utility Plant at December 31, 29 Depreciable Group (D Survivor Curve Original Cost at December 31, 29 Book Reserve Future Accruals Annual Accrual Amount Composite Remaining Life Annual Accrual Rate, Percent (2) (3} (4) (5) (6) (7) (8) Contributions in Aid of Construction o> 33.5 Distribution Reservoir and Standpipe Land 34.2 Power and Pumping Structures 34.3 Purification Buildings 35 Collecting and Impounding Reservoirs 311 Electric Pumping Equipment 32 Purification System Chemical Treatment Equipment 33 Distribution Reservoirs and Standpipes 331 Transmission and Distribution Mains Cast Iron Mains - 4 Inch and Under Cast Iron Mains - 6 Inch and 8 Inch Cast Iron Mains -1 Inch and Over Valves and Valve Boxes Total Account 331 Nondepr, Square 15-R1 Square 4-R L1.5 Square 1-R3 11-R3 11-R3 9-R , , , ,. 7, , ,7.1 21,994,285,65 451, , ,494, ,568 2,458 12,65 14,43 3, ,448 4,877 2,121,566 17,483 5,374 2,149,3 1,119 2,14 58,2 32,57 4,45 1,35,387 16,13 19,872, ,96 22,68 2,345,13 3, , , , , Services Meters Fire Hydrants Office Furniture and Equipment Computer 75-R3 34-R3 75-R3 5-SQ. 415, , , ,492,86 37, , ,81 8,634 3, , Total Contributions in Aid of Construction 24,943, ,485,911 22,265,69 291,43 Amort/zation of Negative Net 183,695 TOTAL UTILITY PLANT , , ,23,528 4,69,43 * Life Span Procedure was used. Curve Shown is Interim Survivor Curve. *' Annual Accrual is Charged to Clearing Account.

19 TABLE 3. SUMMARY OF PLANT IN SERVICE ACTIVITY FOR THE YEAR ENDED DECEMBER 31, 29 Depreciable Group (1) Balance at Beginning of Year Additions Retirements Acquisition Transfers & Adjustments Balance at End of Year Percent Original Cost Retired (2) (3) (4) 15} (6) (7) {8)=(4V{2) UTILITY PLANT IN SERVICE ^J 31 Organization 32 Franchises and Consents Water Rights Reservoir Land 33.2 Power and Pumping Land 33.3 Purification Land 33.4 Transmission and Distribution Land and Rights of Way 33.5 Distribution Reservoir and Standpipe Land Office Land Stores, Shop and Garage Land Olher Water Source Structures 34.2 Power and Pumping Structures 34.3 Purification Buildings Office Buildings Stores, Shop and Garage Buildings Miscellaneous Structures and Improvemenls 35 Collecting and Impounding Reservoirs 36 Lake, River and Other Intakes 37 Welts and Springs 39 Supply Mains 31.2 Power Generation Equipment/Pumping 31.7 Oil Engine Pumping Equipment 311 Electric Pumping Equipment 32.1 Purification System - Filters, Basins and Piping 32.2 Purification System - Chemical Treatment Equipment 32.3 Purification System - Electronic Control Equipment 33 Distribution Reservoirs and Standpipes Mains and Accessories - Cast Iron Mains - 4 Inch and Under Mains and Accessories - Cast Iron Mains - 6 Inch and 8 Inch Mains and Accessories - Cast Iron Mains -1 Inch and Over Mains and Accessories - Transite Mains and Accessories - Concrete Mains and Accessories - Steel Mains and Accessories - Valves and Valve Boxes Mains and Accessories - Copper, Plastic and Galvanized Mains and Accessories Vaults Mains and Accessories Venluri Tubes Mains and Accessories - Emergency Bypass Piping Mains and Accessories - Metering Equipmenl Mains and Accessories - Cleaning & Lining 333 Services 334 Meters , , , , , ,166, , , ,76, , , , , , ,684, , , , ,78, , ,96, , , , ,254, , , ,869,766,65 3,948, ,88 45, ,165, , , , , , , , , , , , ,58. 3, , , ,64. 37,9, ,98. 2, , , , , 5,. (5,.) (974.2) (2.93) (129,98.39) 129,26.94 ( ) ( ) 5,32.9 4, , ,12, , , ,12,64 115, , ,25, ,166, , , , ,929, , ,3, , , , , , , ,51 1, , ,151, , , 15,632, ,...,....2,.2.., ,2.2...,

20 TABLE 3. SUMMARY OF PLANT IN SERVICE ACTIVITY FOR THE YEAR ENDED DECEMBER 31, 29 Depreciable Group (1) Balance at Beginning of Year (2) Additions (3) Retirements (4) Acquisition (5) Transfers & Adjustments (6) Balance at End of Year (7) Percent Original Cost Retired (8)=(4)/(2) CO 335 Fire Hydrants 336 Backflow Preventers 34.1 Office Furniture and Equipment - Furniture 34.2 Office Furniture and Equipment - Equipment 34.3 Office Furniture and Equipment - Mail Machine 34.4 Office Furniture and Equipment - Computer 34.5 Office Furniture and Equipment - Enterprise Software Transportation Equipment - Cars Transportation Equipment - Trucks 342 Stores Equipment Shop Equipment Tools and Work Equipment Tractor and Equipment 344 Laboratory Equipment 345 Power Operated Equipment 346 Communication Equipmenl 347 Miscellaneous Equipment Total Utility Plant in Service 5,437, , , , ,297, , , , , ,37, , , , ,177, , , , , , , ,4, , , , ,299,87 6, , ,124, ,247. 5,151, (26.28) (1,23.46) 1,23.46 (6,855.23) 5,79, , ,582,26 93, , , ,396, , , , , , ,53 798, , ,22, ; 14.4 '. ; i.io i -, i ,. 1.2 i ; o.io.5, Customers' Advances for Construction 34.2 Powerand Pumping Structures (36,183.63) 311 Eleclric Pumping Equipment, (31,44.95) 33 Distribution Reservoirs and Standpipes (158,93.8) Mains and Accessories - Cast Iron Mains - 6 Inch and 8 Inch (17.536,139.1) ( ) 2.255,218. ( ) (31.44,95) {158,93,8) ( Q.8).... Total Customers' Advances for Construction (17,762,298.48) (14,289.7).. 2,255,218. (15,521,37.18) Contributions in Aid of Construction 33.5 Distribution Reservoir and Standpipe Land (19,93.97} 34.2 Power and Pumping Structures (13,686.69) 34.3 Purification Buildings (4,562.38) 35 Collecting and Impounding Reservoirs (7,625,) 311 Electric Pumping Equipment (47,.) 32 Purification System Chemical Treatment Equipment (7,698,) 33 Distribution Reservoirs and Standpipes (1,393,834.66) Mains and Accessories - Cast Iron Mains-4 Inch and Under (21,7.1} Mains and Accessories - Cast Iron Mains 6 Inch and 8 Inch ( ) Mains and Accessories - Cast Iron Mains -1 Inch and Over ( ) 331,7 Mains and Accessories - Valves and Valve Boxes (18,452.37) (1,938.) (1,.) (1, ) ( ) (8,99.) (6,24.) 6,24. (192,868.97) { } ( ) {7,625.) (47,.) (7,698.) (1,493,834.66) (21,7.1) (21,994,285.65) (451,578.69) (27,442.37) ; O.OO. ;. '

21 TABLE 3. SUMMARY OF PLANT IN SERVICE ACTIVITY FOR THE YEAR ENDED DECEMBER Depreciable Group (1) Balance at Beginning of Year (2) Additions (3) Retirements (4) Acquisition (5) Transfers & Adjustments (6) Balance at End of Year (7) Percent Original Cost Retired {8)=(4)/(2) 333 Services 334 Meiers 335 Fire Hyarants 34,4 Office Furniture and Equipmenl - Computer (7,66,14) ( ) (2,759.24) ( ) {47,5.) ( ) (415,16.14) ( ) (46,71.24) (4,492.86).... Total Contributions in Aid of Construction (22,513,799.61) (2,43,5.8)... (24,943,849.69) TOTAL PLANT IN SERVICE 22,91, ,56,452. 1,124, ,151, ,248, ,737, CD

22 TABLE 4. SUMMARY OF BOOK RESERVE ACTIVITY FOR THE YEAR ENDED DECEMBER 31, 29 Account (T) Book Reserve at Beginning of Year (2) Annual Accrual (3) Retirements (4) + Gross (5) Cost of Removal (SJ Amortization of Net (7) Acquisition (8) Adjustments (9) Book Reserve at End of Year (1) Book Reserve as a Percent of Original Cost (11) O , , , , ,517 43, ,587 35, ,156 81,8 1, ,494 22,842 2, ,84 17,741 89, ,763 71, , , , , , ,938 74, ,824 1, ,4 433, ,217 58, , , , ,654, , Total 32 = , , , , , ,847 23,94 19,13 431,354 7, ", ,172 5, ,317 4, , ,58 3,23 1, , ,613 1, , , _ 65, , ,118 (65.843) ,7,848 14, ,595 8, , , ,48 88, , , , Total 331 = 13.86, ,88 51, , , , , , ,515 89,95 7,95 4,57 7,649 3,12 4, ,156 5,387 1, ,973 37, (3.681) 21,41 (5) ,982 5, ,533 57, , ,816 18: , Total 34 = 1, , (5) 2.198,753

23 TABLE 4. SUMMARY OF BOOK RESERVE ACTIVITY FOR THE YEAR ENDED DECEMBER 31, 29 Account (1) Book Reserve at Beginning of Year (2) + Annual Accrual (3) Retirements (4) + Gross (5) Cost of Removal (6) i Amortization of Net (7) + Acquisition (8) Adjustments (9) Book Reserve at End of Year (1) Book Reserve as a Percent of Original Cost (11) , , , ,932 2, ,719 1, , , (2.31) (18) (35) (2) (7) (18,29) (1,23) (8,383) ,537 4, , Subtotal 39,82, ,12,972 25, , ,174 64,366 (9,64) 43, ro Less: Advances (15,733) (18,842) (145.85) (2, ) (745) (63) (397) ( ) (16,478) (19.472) (146,22) ( ) ' Subtotal (3,119.48) (147,357} (3,266,45) : Less: Contributions _ , ,3 331,7 (26,922} (2.399) (12,68) (13.81) (2,882) (16.781) (4.635) (1, ) (7.661) (2,942) (3,646) (59) (537) (1.349) (366) (27.667) (242) ( ) (1.333) (251) (37,426) (8,489) (2,181} (3,568) (2.458) (12,65) (14.43) (3,248) (188,448) (4,877) (2,121,566) (17.483). (5,374) , ; :82 19:58 Tolal 331 = ( ) ( ) (48,96) (2,149.3)

24 TABLE 4. SUMMARY OF BOOK RESERVE ACTIVITY FOR THE YEAR ENDED DECEMBER 31, 29 Account (1) Book Reserve at Beginning of Year (2) + Annual Accrual (3) Retirements {4} + Gross (5) Cost of Removal (6) Amortization of Net + (7) + Acquisition (8) Adjustments (9) Book Reserve at End of Year (1) Book Reserve as a Percent of Original Cost (11) (3.541) (26,285) (8,995) (4.493) (89) (987) (266) (33,45) (6,748) (37.8) (27.272) (16.9) (4,493) Subtotal (2, ) (273.46) (88,294) (2.485,911) Total ,93 4, ,12,972 25, (9.64) IO to

25 TABLE 5. CALCULATION OF NET SALVAGE ACCRUAL FOR THE YEAR 21 Account (1) Gross (2) S 29 Cost Of Cost Of Cost Of Gross Removal Removal Removal (3) Gross (4) (5) Gross + (6) (7) H (8) Cost of Removal (9) + Gross (1) Cost of Removal (11) Net (12)* Accrual (13)= =(12)/5 1 IO , ,417,31 2, , ,93 3, ,4.65 9, , , , , , , ,422. 3, , (22.43) , , ,17, , , , ,45,13 7, ,55,36 56,875, , , , , , , ,58.6 (2,193.24) (2,55.88) (4.751,) (299.2) (19,93) (232.3) (7,86.65) (1,422,) (368,879,27) {454,55.41) 31, (12,591.12) , ,, (439) (51) (95) (6) (4) (46) (1,572) (284) (73,776) (9,91) 6,345 (24,118) TOTAL 26, , ^ , , ^ , , , (918,487.31) {183,695) ' Column (12) equals the summation of Columns (2) through (ii).