RE: CAD Submission of Supplemental Exhibit MJM-6

Transcription

1 CONSUMER ADVOCATE DIVISION STATE OF WEST VIRGINIA PUBLIC SERVICE COMMISSION 700 Union Building 723 Kanawha Boulevard East Charleston West Virginia (304) Sept Ingrid Ferrell Executive Secretary Public Service Commission of West Virginia 201 Brooks Street Charleston West Virginia RE: WEST VIRGINIA-AMERICAN WATER COMPANY CASE NO W-42T S-42T WS-D RE: CAD Submission of Supplemental Exhibit MJM-6 Dear Ms. Ferrell: It has come to my attention that the testimony from CAD witness Mike Majoros may be missing one exhibit. On pp. 8 over to p. 9 in the discussion of Regulatory Asset Mr. Majoros refers to several data responses including more particularly CAD DEP The relevant excerpts from that data response are attached and marked as Exhibit MJM-6 and I ask that it be included with his testimony. I am advised that counsel for the Company has no objection to the CAD submitting this supplement to Mr. Majoros testimony. Please file accordingly. An original and twelve copies of this submission are enclosed and copies have been served on all parties of record. Sincerely Enclosures cc: Parties of record Tom White Counsei for Consumer Advocate State Bar No AN EQUAL OPPORTUNITY EMPLOYER 1

2 WEST VIRGINIA-AMERICAN WATER COMPANY CASE NO WS-D CONSUMER ADVOCATE DIVISION OF THE PUBLIC SERVICE COMMISSION OF WEST VIRGINIA FIRST REQUEST FOR INFORMATION Date of Request: July Prepared by: John Tomac Witness: John J. Spanos Date Prepared: July CAD DEP Provide the Company s most recent three years of annual reports to shareholders. Reconcile the end-of-year (EOY) plant and reserve balances shown in the Depreciation Study with the EOY plant and reserve balances shown in the most recent Shareholder Annual Report and provide a complete explanation for each difference. RESPONSE: Please refer to CAD DEP Attachment 1 which is the Company s Consolidated Financial Statements for the years ended December and The Company previously provided Consolidated Financial Statements for the years ended December and 2012 on April with this case filing. \ Please refer to CAD DEP Attachment 2 which provides a reconciliation of the plant and reserve balances shown in the Depreciation Study with the balances contained in the Consolidated Financial Statements. It should be noted that Bluefield Valley Water Company balances which are contained in the Consolidated Financials are not part of this rate application.

3 CAD DEP Attachment 1 Case No WS-D Page 1 of 26 West Virginia-American Water Company Inc. (a majority-owned subsidiary of American Water Works Company Inc.) Consolidated Financial Statements As of and for the years ended December and 2013

4 WEST VIRGINIA-AMERICAN WATER COMPANY INC. Notes to Consolidated Financial Statements December and 2013 (Dollars in thousands) CAD DEP Attachment 1 Case No WS-D Page 16 of 26 Note 4: Utility Plant The components of utility plant by category at December 3 I are as follows: Land and other non-depreciable assets lransmission and distribution Services meters and fire hydrants lreatment and pumping General structures and equipment Sources of supply Wastewater Construction work in progress Less: accumulated depreciation Range of Remaining Useful Life 32 to 98 Years I8 to 73 Years 4 to 50 Years 4 to 50 Years 38 to 97 Years 5 to 50 Years -~ $ 6;021 $ I06Z I (141351) - (152098) $ $ The provision for depreciation expressed as a percentage of the aggregate average depreciable asset balances was 2.82% and 2.78% in 2014 and 2013 respectively. The Company records depreciation in conformity with amounts approved by the Regulators after regulatory review of information the Company submits to support its estimates of the assets remaining useful lives. Note 5: Regulatory Assets and Liabilities Regulatory Assets Regulatory assets represent costs that are expected to be fully recovered from customers in future rates. The components of regulatory assets are as follows: Cost of removal Income taxes recoverable through rates Deferred tank painting costs Allowance for funds after construction Debt and preferred stock expense Other $ $ Cost of removal represents retirement costs expected to be recovered through filture customer rates during the life of the associated assets. The Company has recorded a regulatory asset for additional revenues expected to be realized as the tax effects of temporary differences reverse. These temporary differences are - 14.

5 CAD DEP l-oo6-atlachrnent 2 Case No WS-D Page 1 of 1 WerlVwgtnia American Wafer case NO 1s 0674 WS e Response to CAD DEP 1M16 ~econciliafion of 12/31/2014 Water Plant and Rerewe Balanies Oepr Study VI PWCAudited Annual ReFOci Wnors m maurondr sovrre UfiOfy Plant atoiiglnalcmtneiof WVAWC 2014 PWC CONSOLIDATED ANNUAL REPORT 1 Balance Sheet. Arret5 scrumulafed depremtion $ $ $ 303 WVAWC 2014 PWCCONSOUOATEDANNUAL REPORT 2 Balance Sheet Qpit8litafion and L8abilitief Customer Advancer (16738) ) 1261 WVAWC 2014 PWCCONSOLIDATED ANNUAL REPORT 2 Balance Sheet Capitalizmon and Liabilities Contributions m Atd of ConmvrliOn ) WVAWC 2016 PWCCONSOLIOkTED IINNUAL REPORT 14 Footnote 5 Regulatory Asletl Regulatow &ret Colt of Removal (01 PWC REPORT Plant Con of Removal Advances anuc0ntnbut10nl $ Remove Regulatory Arret AFUDC Debt net balance from Utllify Plant Remove Can$tfrutDon Work m Progreil balance from Utility Plant ~mave ~ettiemenf work en ~r~greri balance from Cost of RemOval Add Currenf Pormo OfCmlOmerAdvancer 1331 (9 386) IS 518) I4021 Remoue WIP balance from Advancer far Connrurtim Remove WlP balance from Contribution$ inflldofconrfrilctqn se 98 PWCREPORTADlUSTfD Net Plant CD~f~fRemovali\dvancerand Confnbutims WVAWC 2014 WATER Depreriaflan Study. VI 5 TOTALWATERPUNT S WVAWC 2014 WATER Denrectation Study- VI 5 TOTALWATERRESERVE I WVAWC 2014 WASTEWATER Depreciation Sfudv' w-5 TOTAL WASTEWATER PLANT WVAWC 2014 WASTEWATER DeprertaflOn Study. VI 5 TOTAL WASTEWATER RESERVE WVAWC 1014 Deprrrlation Study.Total Net Plant $ Variance P (01 *Oe~reciafian SLudy filed under Case No WS 0

6 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON WEST VIRGINIA-AMERICAN WATER COMPANY Rule 42T application to increase rates and charges. CASE NO W-42T S-42T WS-D CERTIFICATE OF SERVICE I Tom White counsel for the Consumer Advocate Division of the Public Service Commission of West Virginia (CAD) certify that I have served a copy of the foregoing CAD Submission of Supplemental Exhibif MJM-6 upon all parties of record by US Mail postage prepaid Tom White Counsel for Consumer Advocate State Bar No Dated Sept