A JASM. Aqua Pennsylvania, Inc. and Aqua Pennsylvania Wastewater, Inc. Tax Cuts and Jobs Act of 2017 Docket No. M-2018~2641^42

Transcription

1 A JASM RECEIVED MAR PA PUBLIC UTILITY COMMISSION SECRETARY'S BUREAU VIA FEDERAL EXPRESS March 9, 2018 Rosemary Chiavetta, Secretary Pennsylvania Public Utility Commission f 400 North Street Harrisburg, PA RE: Aqua Pennsylvania, Inc. and Aqua Pennsylvania Wastewater, Inc. Tax Cuts and Jobs Act of 2017 Docket No. M-2018~2641^42 Dear Secretary Chiavetta: Enclosed please find Aqua Pennsylvania, Inc. and Aqua Pennsylvania Wastewater, Inc.'s responses to the Exhibit B data requests and Exhibit C templates issued by the Pennsylvania Public Utility Commission in its February 26, 2018 Secretarial Letter in Docket No. M If you have any questions concerning this filing, please contact me at Sincerely, Alexander R. Stahl Regulatory Counsel 762 W. Lancaster Avenue, Bryn Mawr, PA, AquaAmerica.com

2 RECEIVED MAR oa bi PA PUBLIC im UTILITY,.^-T, ~w COMMISSION Respondent: F William rwp* ftvoo/701 C. Packer * SECRETARY'S BUREAU Date* 03/09/2018 AQUA PENNSYLVANIA, INC. AND AQUA PENNSYLVANIA WASTEWATER, INC. TAX CUTS AND JOBS ACT OF 2017 RESPONSES TO ATTACHMENT B DATA REQUESTS DOCKET NO. M How does the reduction in the corporate Federal Income Tax rate from 35% to 21% affect your federal tax obligations for calendar year 2018 and subsequent tax years? Please quantify your response as to the effect on both current and deferred tax obligations. RESPONSE The reduction in the Federal corporate income tax rate from 35% to 21% reduces the tax benefits that otherwise would be available to Aqua Pennsylvania, Inc. ( Aqua PA or the Company ) in In other words, it increases the Company s income tax expense in 2018, The Company currently projects that it will experience a taxable loss for 2018, primarily as a result of flowing-through current-period tax repair deductions and amortizing the catch-up deduction Aqua PA received for tax year 2012 from changing its method of accounting to deduct for tax purposes certain repair costs that are recorded as capital expenditures for financial accounting purposes. As explained below, those changes were anticipated in the settlement of the Company s 2011 base rate case. Because the Company is currently accruing tax benefits (i.e., a net operating loss) for calendar year 2018, the reduction in the Federal corporate tax rate from 35% to 21% made by the Tax Cuts and Jobs Act of 2017 ( TCJA ) will increase the Company s income tax expense as compared to the level of tax expense it would otherwise have experienced. ; S In the Company s last water rate case, which was filed on November 18, 2011 (see the Company s response to Data Request No. 9, below), the Company achieved a settlement with all major parties, which the Commission approved, that expressly required the Company to utilize flow-through accounting for its anticipated change in accounting method to deduct as operating expenses for income tax purposes certain expenditures that are capitalized for financial reporting purposes. The settlement in that case provided that, if the Company elected the tax-repairs method of accounting in a federal tax return filed after 2012, the Company would not file for another base rate increase until after

3 1 November In short, the settlement provided for an extended stay-out based on whether the Company adopted the tax-repairs method of accounting for tax purposes. After notifying the parties of its intention to elect the tax repairs method of accounting, in December 2012, the Company reduced its water distribution system improvement charge ( DSIC ) from 2.82% to 0.00%. Additionally, in 2013, after the Company began to amortize the catch-up tax-repair adjustment, it filed a letter in May 2, 2013 with the Commission s Secretary,. which it served on the statutory parties, to provide formal notice that it would delay the base rate filing it previously planned to make in November The Company has not filed a water or wastewater base rate increase request since November 2011 and anticipates its next consolidated base rate filing will be made in mid-summer of In addition, the Company did not implement a Water DSIC charge between the time it reduced its DSIC to zero (January 2013) and October 2017, when it initiated a DSIC of 2.5%. The Company was able to achieve this extended period of rate stability only because of its decision, which was anticipated and required as part of the settlement of its 2011 base rate case, to flow-through annual tax repair deductions and to amortize the catch-up adjustment in the manner provided in the settlement. \

4 Respondent: William C. Packer Date: 03/09/2018 AQUA PENNSYLVANIA, INC. AND AQUA PENNSYLVANIA WASTEWATER, INC. TAX CUTS AND JOBS ACT OF 2017 RESPONSES TO ATTACHMENT B DATA REQUESTS DOCKET NO. M If a reduced tax obligation is passed through to ratepayers, explain the methodology to be used to compute the reduction, the rate mechanism to accomplish the reduction, and the allocation among customer classes. RESPONSE No change or interim adjustment mechanism to reduce the Company s current customer rates is necessary, for the reasons set forth in the response to Data Request No. 1, above. As noted previously, the Company anticipates filing its first consolidated (water and wastewater) base rate case since 2011 in mid-summer 2018, at which time, the Company expects to have positive taxable income on a fully projected basis and therefore the effects of the reduction in the Federal income tax rate will be reflected in developing the Company s revenue requirement while the effects of flowing-through tax repair deductions will continue to be recognized in the Company s customer rates, keeping them much lower than they would otherwise be.

5 Respondent: William C. Packer Date: 03/09/2018 AQUA PENNSYLVANIA, INC. AND AQUA PENNSYLVANIA WASTEWATER, INC. TAX CUTS AND JOBS ACT OF 2017 RESPONSES TO ATTACHMENT B DATA REQUESTS DOCKET NO. M If any of the potential tax savings from the reduced federal corporate tax rate can be used for purposes other than to reduce customer rates, provide details on how and where those tax savings can be used. RESPONSE As explained in the response to Data Request No. 1, the Company is not experiencing tax savings in 2018 from the reduction in the Federal corporate income tax rate, but in fact, is incurring greater tax expense in 2018 than had been anticipated prior to the enactment of the TCJA. Consequently, there are no tax savings to be reflected as a reduction to the Company s current customer rates or to be used for purposes other than to reduce customer rates.

6 Respondent: William C. Packer Date: 03/09/2018 AQUA PENNSYLVANIA, INC. AND AQUA PENNSYLVANIA WASTEWATER, INC. TAX CUTS AND JOBS ACT OF 2017 RESPONSES TO ATTACHMENT B DATA REQUESTS DOCKET NO. M Does the company have any Net Operating Losses (NOL) as of 12/31/17? Please quantify the impact of the Tax Cuts and Jobs Act (TCJA). RESPONSE The Company s water and wastewater operations produced a net operating loss (NOL) for 2017 as a result of the Company s flow-through of the tax benefits of its tax repairs deductions, as explained in the response to Data Request No. 1, above. The Company does not file a separate Federal income tax return because it is a member of the consolidated group consisting of Aqua America, Inc. and its subsidiaries, which files a consolidated Federal income tax return. The consolidated group does not have an NOL based on its operating results for the year ended December 31, It does, however, have an NOL carryforward from The reduction in the Federal corporate tax rate does reduce the future tax benefit of the Company s NOL carryforward which was recognized at the 35% rate prior to TCJA.

7 Respondent: William C. Packer Date: 03/09/2018 AQUA PENNSYLVANIA, INC. AND AQUA PENNSYLVANIA WASTEWATER, INC. TAX CUTS AND JOBS ACT OF 20X7 RESPONSES TO ATTACHMENT B DATA REQUESTS DOCKET NO. M \ 5. Does the company have any Deferred Tax Liabilities as of 12/31/17? Please quantify the impact of the Tax Cuts and Jobs Act (TCJA). RESPONSE Aqua PA (water and wastewater operations) had deferred tax liabilities as of December 31, 2017, of $293,210,000 calculated at the 35% Federal corporate tax rate in effect prior to the effective date of the TCJA. The deferred tax liabilities as of December 31, 2017 were reduced to $175,926,000 as a result of the reduction of the Federal corporate tax rate to 21%. The difference of $117,284,000 was recorded as a regulatory liability on the Company s books of account and will be amortized ratably over the remaining life of the underlying assets as a credit to tax expense based on the Average Rate Assumption Method (ARAM) required by applicable IRS regulations.

8 Respondent: William C. Packer Date: 03/09/2018 AQUA PENNSYLVANIA, INC. AND AQUA PENNSYLVANIA WASTEWATER, INC. TAX CUTS AND JOBS ACT OF 2017 RESPONSES TO ATTACHMENT B DATA REQUESTS DOCKET NO. M Are there any impacts on riders/surcharges resultant from the TCJA? If so, please explain. RESPONSE Aqua PA currently charges a DSIC for both water and wastewater operations. The TCJA s reduction in the Federal corporate income tax rate will be used to calculate the pretax return on eligible property to establish the Company s water and wastewater DSIC charges when it files its next DSIC updates on March 30, Any differences between DSIC revenue recovered and pretax returns attributable to the use of the prior 35% income tax rate to calculate the DSIC charges in effect from January 1, 2018 through the effective date of the next DSIC updates will be reconciled back to January 1, 2018 (the TCJA effective date) in the Company s annual Section 1307(e) filings with the Commission. Because the pretax return at 21% on eligible property to be placed into service by the Company in 2018 will far exceed the 7.5% (water) or 5.0% (wastewater) cap on the DSIC rate, the change in the Federal corporate tax rate will not change the effective DSIC rate during that period. The change in the Federal corporate tax rate will, however, allow more eligible property to be supported by the DSIC rate at the 7.5% (water) or 5.0% (wastewater) cap.

9 Respondent: William C. Packer Date: 03/09/2018 AQUA PENNSYLVANIA, INC. AND AQUA PENNSYLVANIA WASTEWATER, INC. TAX CUTS AND JOBS ACT OF 2017 RESPONSES TO ATTACHMENT B DATA REQUESTS DOCKET NO. M Are there any other changes made in the TCJA that will impact the company? If so, please explain. RESPONSE Under the TCJA, contributions-in-aid-of-construction ( contributions ) and customer advances for construction ( advances ) are taxable to the Company as income when received and, therefore, the Company will have a tax basis in contributed property that will be depreciated for income tax purposes. The Company does not propose to either gross-up the contributions and advances or to include the income tax on contributions and advances in the rates charged to customers. Instead, the Company will retain the tax benefit of depreciating contributed property in order to offset the income taxes it pays and will record the tax paid on contributions and advances in a deferred account that will be reflected for accounting and ratemaking purposes as equivalent to a tax asset, which will offset the Company s accumulated deferred income taxes. The Company will ratably reduce that deferred account by the tax benefit it receives as the contributed property is depreciated for tax purposes.

10 Respondent: William C. Packer Date: 03/09/2018 AQUA PENNSYLVANIA, INC. AND AQUA PENNSYLVANIA WASTEWATER, INC. TAX CUTS AND JOBS ACT OF 2017 RESPONSES TO ATTACHMENT B DATA REQUESTS DOCKET NO. M What test year should be used to quantify the new the 21 % federal corporate tax rate to be effective 1/1/18? RESPONSE Attachment C(w) & C(ww) are the completed spreadsheet templates provided by the Commission as Attachment C to the Secretarial Letter, and reflect data for a twelve-month period ending December 31, 2017 for both Aqua PA s water and wastewater operations. As explained in the response to Data Request No. 1, and as shown on Attachments C(w) & C(ww), there is no basis for reducing the Company s current customer rates. In light of the substantial ongoing infrastructure rehabilitation expenditures which qualify for tax repair deductions, Aqua PA s effective income tax rate has been below 21% since Asa result, customers have benefitted from an extended stay-out as compared to the Company s prior historical pattern, which required it to request a rate increase every twenty-four (24) months to support its level of plant additions. As previously explained, the Company intends to file a consolidated (water and wastewater) base rate case in mid-2018 in which it will calculate its revenue. requirement at the 21% Federal corporate income tax rate that became effective on January 1, 2018.

11 Respondent: William C. Packer Date: 03/09/2018 AQUA PENNSYLVANIA, INC. AND AQUA PENNSYLVANIA WASTEWATER, INC. TAX CUTS AND JOBS ACT OF 2017 RESPONSES TO ATTACHMENT B DATA REQUESTS DOCKET NO. M Please provide the following information regarding your last Commission approved rate case: a. Docket Number b. Date filed c. Approved Rate of Return d. Approved Increase in Annual Revenues e. Allocation of Approved Increase Among Major Customer Classes f. Effective Date of new rates RESPONSE a. Docket Numbers - R (Water) R & R (Wastewater) - (Southeast Consolidated & Masthope) R (Northeast Consolidated Wastewater) b. Dates filed November 18, 2011 (Water) October 29, 2010 (SE Wastewater & Masthope) December 29, 2008 (NE Wastewater) c. Approved Rates of Return - The Company s last water case was resolved by a blackbox settlement. However, as set forth in Paragraph 7.e. of the Joint Petition for Settlement of Rate Investigation, the settling parties agreed that, during the period the settlement rates are in effect, Aqua Pa could use a 10.2% rate of return on common equity to calculate its DSIC charges in lieu of the equity return rates calculated by the Bureau of Technical

12 Utility Services in the Commission s Quarterly Earnings Reports. (Notwithstanding the terms of the settlement, the Company has calculated its current DSIC charges based on the equity return rate for water and wastewater utilities developed in the Commission s most recent Quarterly Earnings Report at the time the calculation was made (9.75%). The Company s last wastewater (Southeast Consolidated), case was also resolved by a black-box settlement. The Company s (Northeast Consolidated) case was approved in 2008, also resolved by a black-box settlement. d. Approved Increase in Annual Revenues - $16,699,573, or approximately 4.08% increase in base rates (Water) $999,000, or approximately 29.93% increase in base rates ($852,314 in the first year, $146,686 in the second year)- (SE Wastewater) and $115,000, or approximately 32.70% increase in base rates (Masthope) $556,307, or approximately 34.90% increase in base rates ($455,245 in the first year, $101,062 in the second year) - (NE Wastewater) e. Allocation of Approved Increase Among Major Customer Classes - The allocation of the approved revenue increase among Aqua PA s major (water) customer classes was shown in the proof of revenues provided as Appendix B to the Joint Petition for Settlement of Rate Investigation. A copy of Appendix B to the Joint Petition is provided as Attachment D(w) to this response. The allocation of the approved revenue increases for the Company s (Southeast & Northeast) consolidated wastewater operations are (APPENDIX B - of Joint Petition for Settlement) are attached as Attachment D(ww)) to this response. f. Effective Date of new rates - June 8, 2012 (Water) June 10, 2011 (Southeast Consolidated & Masthope) July 23, 2009 (Northeast Consolidated) & September 25, 2009 (Eagle Rock Division)

13 Water

14 Aqua Pennsylvania, Inc. Calculation of State and Federal Income Taxes Attachment C(w) Page 1 of 2 Last Commission Approved Line No. DESCRIPTION Rate Case Actual Results 12/31/17 Ratemaking Adjustments Proposed Adjusted 12/31/17 1 Operating Revenues $ 425,559,264 $ 397,924,847 $ 397,924,847 2 Less: O&M Expenses 115,487,957 $ 115,487,957 3 Book Depreciation 79,277,491 $ 79,277,491 4 Interest Expense 55,197,118 (1,838,443) $ 53,358,675 Taxes - Other than Income 9,372,595 9,372,595 Operating Income before Taxes Total $ 425,559,264 $ 138,589,686 $ 1,838,443 $ 140,428,129 6 Add: Premature Property Losses/ Amortizations $ - $. 7 Depr- Straight Line- Remaining Life (Incl COR) 73,994,757 $ 73,994,757 8 Taxable Meals & Entertainment 56,946 $ 56,946 9 Total $ - $ 74,051,703 $ - $ 74,051,703 Deduct: Current Year Tax Repair and Amortization Catch-Up l/10th $ 214,217,018 $ 214,217, Tax Depreciation 58,079,051 $ 58,079, MACRS On Post 1986 Assets 8,025,689 $ 8,025, Cost of Removal 1,803,867 $ 1,803, Total $ - $ 282,125,625 $ - $ 282,125, State Taxable Income $ 425,559,264 $ (69,484,236) $ 1,838,443 $ (67,645,793) 15 State Income At: 16 Historic, Future and Fully Projected At 9.99% s 42,513,370 $ (6,941,475) $ 183,660 $ (6,757,815) 17 Taxable Income after State Income Tax $ 383,045,894 $ (62,542,761) $ 1,654,783 $ (60,887,978) 18 Add: Cost Of Removal Non Adr Property $. 19 ACRS On Post 1980 Assets $ - 20 MACRS On Post 1980 Assets- State $ 8,025,689 $ 8,025, Deduct: SLRL On Post 1980 Assets & Amortization $ 22 Income Subject To Federal Income Tax $ 383,045,894 $ (54,517,072) $ 1,654,783 $ (52,862,289) 23 Federal Income Tax at 35% $ 134,066,063 $ (19,080,975) $ 579,174 $ (18,501,801) 24 Federal income Tax at 21% $ 80,439,638 $ (11,448,585) $ 347,504 $ (11,101,081)

15 Effect of Tax Cuts and Jobs Act (TGA) on Rates Attachment C(w) Page 2 Pre TGA Taxes Net Tax Effect Federal- Current (Page 1, Column 4, Line 23) $ (18,501,801) Federal- Deferred $ 30,412 Less: Post TGA Taxes Federal- Current (Page 1, Column 4, Line 24) $ (11,101,081) Federal- Deferred $ 2,256,365 Effect of TGA On Income (A) $ (7,400,721) Change in ADIT $ (2,225,953) Comission Approved Rate of Return 7.20% ** From Company's most recent DSIC filing Effect of ADIT Change on Income (B) $ (160,269) Earnings Excess/(Deficit) (Line A - Line B) $ (7,240,452) Complement of Tax Rate Revenue Excess/(Deficit) $ (10,182,345) Commission Allowed Revenues $ 425,559,264 Percent lncrease/(decrease) Per Bill %

16 Attachment C Wastewater

17 Aqua Pennsylvania Wastewater, Inc. Calculation of State and Federal Income Taxes Attachment C(ww) Page 1 of 2 Line No. DESCRIPTION Last Commission Approved Rate Case Actual Results 12/31/17 Ratemaking Adjustments Proposed Adjusted 12/31/17 1 Operating Revenues $ 6,953,538 $ 13,180,830 $ 13,180,830 2 Less: O&M Expenses 7,479,746 $ 7,479,746 3 Book Depreciation 3,019,257 $ 3,019,257 4 Interest Expense (* Reflects interest synchronization) 25,963 1,681,124 $ 1,707,087 Taxes - Other than Income 210, ,336 Operating Income before Taxes Total $ 6,953,538 $ 2,445,528 $ (1,681,124) $ 764,404 6 Add: Premature Property Losses/ Amortizations $ - 7 Depr- Straight Line- Remaining Life (Incl COR) $ 3,019,257 $ 3,019,257 8 Taxable Meals & Entertainment $ 1,043 $ 1,043 9 Total $ - $ 3,020,300 $ - $ 3,020,300 Deduct: Current Year Tax Repair and Amortization Catch-Up l/10th $ 583,862 $ 583, Tax Depreciation 2,600,257 $ 2,600, MACRS On Post 1986 Assets 38,162 $ 38, Cost of Removal 20,935 $ 20, Total $ - $ 3,243,216 $ - $ 3,243, State Taxable Income $ 6,953,538 $ 2,222,612 $ (1,681,124) $ 541, State Income At: 16 Historic, Future and Fully Projected At 9.99% $ 694,658 $ 222,039 $ (167,944) $ 54, Taxable Income after State Income Tax $ 6,258,880 $ 2,000,573 $ (1,513,180) $ 487, Add: Cost Of Removal Non Adr Property $. 19 ACRS On Post 1980 Assets $ - $ - $ - $ - 20 MACRS On Post 1980 Assets- State $ 38,162 $ 38, Deduct: SLRL On Post 1980 Assets & Amortization $. 22 Income Subject To Federal Income Tax $ 6,258,880 $ 2,038,735 (1,513,180) $,525, Federal Income Tax at 35% S 2,190,608 $ 713,557 $ (529,613) $ 183, Federal Income Tax at 21% s 1,314,365 $ 428,134 $' (317,768) $ 110,367

18 Effect of Tax Cuts and Jobs Act (TGA) on Rates Attachment C(ww) Page 2 Pre TCIA Taxes Net Tax Effect Federal- Current (Page 1, Column 4, Line 23) $ 183,944 Federal- Deferred $ (122,432) Less: Post TGA Taxes Federal- Current (Page 1, Column 4, Line 24) $ 110,367 Federal- Deferred $ (2,019,390) Effect of TGA On Income (A) $ 73,578 Change in ADIT $ Comission Approved Rate of Return 1,896,958 \ 7.20% ** From Company's most recent DSICfiling Effect of ADIT Change on Income (B) $ 136,581 Earnings Excess/(Deficit) (Line A - Line B) $ (63,003) Complement of Tax Rate Revenue Excess/(Deficit) $ (88,602) Commission Allowed Revenues ' S 6,953,538 Percent lncrease/(decrease) Per Bill %

19 Attachment D Water

20 AQUA PENNSYLVANIA, INC. Bryn Mawr, Pennsylvania PROOF OF REVENUES UNDER STEELEMENT RATES Gannett Fleming Valuation and Rate Division Excellence Delivered As Promised

21 AQUA PENNSYLVANIA, INC. COMPARISON OF PRO FORMA COST OF SERVICE WITH REVENUES UNDER PRESENT AND SETTLEMENT RATES FOR THE TWELVE MONTHS ENDED JUNE 30, 2012 Residential Customer Classification 0) Pro Forma Cost of Service, as of June 30,2012 Pro Forma Revenues Under Present Rates Pro Forma Revenues. Under Settlement Rates Settlement Increase Percent Percent Percent Percent Amount of Total Amount of Total Amount of Total Amount Increase (2) (3) (4) (5) (6) (7) (8) (9) $ 294,158, % $ 269,884, % $281,502, % $11,617, % Commercial 101,664, % 91,134, % 95,001, % 3,867, % Industrial 16,912, % 14,247, % 14,928, % 680, % Public 8,357, % 7,374, % 7,892, % 517, % Other Water Utilities 753, % 675, % 725, % 50, % Private Fire Protection 11,523, % 12,069, % 11,389, % (679,459) -5.63% Public Fire Protection 5,832, % 5.559, % 5,832, % % Total Tariff Sales of Water 439,201, % 400,944, % 417,272, % 16,327, % Contract Sales - Industrial Contract Sales - Public Contract Sales - OWU Total Sales of Water 2,895,073 1,055,852 2,213,699 2,827, ,835 2,120,647 2,895,073 1,055,852 2,213,699 67, , % 16.18% 4.39% 445,366, ,802, ,437,219 16,635, % Other Water Revenues 2,122, ,122, % Total $ 447,488,478 $ 408,859,691 $ 425,559,264 $16,699, % Schedule A

22 AQUA PENNSYLVANIA, INC. CONSOLIDATED DIVISIONS SUMMARY OF PRO FORMA REVENUES UNDER SETTLEMENT RATES FOR THE TWELVE MONTHS ENDED JUNE 30, 2012 Application of Revenues Excluding Test Year Revenue Increase Settlement Rates To Consumption Test Year Revenues Pro Forma Adjustments Under Settlement Rates Pro Forma Revenues Classification Adjs. Under Present Rates' Under Settlement Rates Analysis, Schedule 2 Under Settlement Rates Historic Test Year Future Test Year Under Settlement Rates (D (2) (3)=(4)-(2) (4) (5)=<4) (6) (7) (8)=(5)+<6)+(7) Metered Sales: Residential $ 269,496,585 $ 11,601,491 $ 281,098,076 $ 281,098,076 $ 134,699 $ 269,398 $ 281,502,173 Commercial 91,520,953 3,900,758 95,421,711 95,421,711 73,673 (493,926) 95,001,458 Industrial 17,464, ,765 18,233,386 18,233, (410,040) 17,823,579 Public 8,280, ,695 8,936,772 8,936,772 3,927 7,854 8,948,553 Other Water Utilities 2,795, ,414 2,939,215 2,939,215 2,939,215 Private Fire Protection 11,032,995 (614,205) ,790 10,418,790 10,418,790 Total Metered Sales 400,591,031 16,456, ,047, ,047, ,532 (626,714) 416,633,768 Unmetered Sales: Private Fire Hydrants 1,036,265 (65,254) 971, , ,011 Public Fire Hydrants 5,559, ,119 5,832,440 5,832, ,832,440 Total $407,186,617 $ 16, $ 423,851,401 $ 423,851,401 $ 212,532 $ (626,714) $ 423,437,219 * Application of present rates to the test year consumption analysis. See Exhibit No. 5-A, Part II, Schedule 1, column 5. Schedule 1

23 AQUA PENNSYLVANIA, INC. SUMMARY OF APPLICATION OF SETTLEMENT RATES TO CUSTOMER CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 Div. Other Water Total Rate Division Ref. Residential Commercial Industrial Public Utilities Metered Sales (1) (2) (3) (4) (5) (6) (7) Main 1 $ 238,459,759 $ 79,284,645 $10,309,507 $5,615,406 $ 725,516 $334,394,833 Other Main 9 26,374,894 7,424,634 4,599,559 1,813,248 $ 40,212,335 Bensalem 15 10,358,430 7,720, , ,707 18,842,825 Chalfont 19 1,204, ,625 18,086 14,977 1,380,027 Hedgerow , ,625 Western, Fawn, Woodledge ,305 23, ,041 White Haven ,734 50, ,890 Pinecrest , ,091 Eagle Rock ,890 43, ,706 Woodloch Pines - Full Tariff 61 85,678 85,678 Marienville/Applewood ,557 62, ,808 Oakland Beach ,938 28,502 7, ,558 Country Club Gardens ,116 2, ,735 Cove Village 88 80,141 2,447 82,588 Paupaken Lake 89 9,707 9,707 Clarendon ,637 22, ,109 CS Water (Masthope) ,142 5, ,363 Emlenton ,106 57,764 18, ,339 Lakeside Acres 95 98,642 4, ,245 Washington Park-Sleepy Hollow ,956 15, ,454 Kratzerville 98 77, ,670 Honesdale , ,267 11,851 46,582 1,348,909 Total Metered Sales $ 281,098,076 $ 95,421,711 $15,338,313 $7,880,920 $ 725,516 $400,464,536 Contract Sales 2,895,073 ' 1,055,852 2,213,699 6,164,624 Total Proposed Revenue $ 281,098,076 $ 95,421,711 $18,233,386 $8,936,772 $2,939,215 $406,629,160 Schedule 2 Page 1 o f 2

24 AQUA PENNSYLVANIA, INC. SUMMARY OF APPLICATION OF SETTLEMENT RATES TO CUSTOMER CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 Div. Other Water Total Rate Division Ref. Residential Commercial Industrial Public Utilities Metered Sales (D (2) (3) (4) (5) (6) (7) Pro Forma Adiustments Load Growth - HTY Main 120,519 84, (3,317) 202,286 Fawn Lake 10,182 10,182 Applewood/Marienvide 1,848 1,463 3,311 Cove village Emlenton (855) 1,868 1,013 Honesdale (5,948) (13,454) -. 7,244 (12,158) Kratzereville (731) (259) (990) Washington Park White Haven CS Water 6,453 (538) 5,915 Oakland Beach 2,062 (1,080) 982 Subtotal HTY Adjs. 134,699 73, , ,532 Load Growth - FTY Main 241, , (6,634) 404,572 Main - Specific Customer Adj. (641,272) (410,506) (1,051,778) Fawn Lake 20, ,364 Applewood/Marienville 3,696 2, ,622 Cove village ,302 Emlenton (1,710) 3, ,026 Honesdale (11,896) (26,908) - 14,488 (24,316) Kratzereville (1,462) (518) - - (1,980) Washington Park 1, «1,342 White Haven - 1, ,338 CS Water 12,906 (1,076) ,830 Oakland Beach 4,124 (2,160) * 1,964 Subtotal FTY Adjs. Total Pro Forma Revenues Under Proposed Rates 269,398 (493,926) (410,040) 7,854 - (626,714) $281,502,173 $95,001,458 $17,823,579 $8,948,553 $2,939,215 $406,214,978 Schedule 2 Page 2 o f 2

25 AQUA PENNSYLVANIA. INC. APPLICATION OF SETTLEMENT RATES TO METERED PRIVATE FIRE CUSTOMERS AS OF JUNE 30, 2012 Usage Division 5/8-inch 1-inch 1 1/2-inch 2-inch 3-inch 4-inch 6-inch 8-inch 10-inch 12-inch 100 Gals. Total Number of Unite Main Bristol Bensalem Chalfont Roaring Creek Honesdale Total ,506 1, , , , ,580 2, ,754 Settlement Rates Main Rates $ 5.60 $ 5.60 $ $ $51.50 $ $; $ $ $1, $ Bensalem Rates $ 5.60 $ 5.60 $ $ $51.50 $ $ $ $ $ Bristol Usage $ Chalfont Usage Honesdale Rates $ 5.60 $ 5.60 $ $ $51.50 $ $ $ $ $ Settlement Rate Revenue Main $ - $ 3,562 $ 22,733 $ 76,841 $ 618 $ 1,575,878 $ 4,333,824 $2,814,000 $201,960 $ 33,912 $464,601 $ 9,527,929 Bristol ,043-18, , ,620 18,360 2, ,813 Bensalem ,522-23, , ,600 12,480 12, ,390 Chalfont ,278 20, ,016 Roaring Creek ,742 50, ,500-12, ,088 Honesdale ,074 11,520 12, ,554 Total $ - $ 4,032 $ 22,887 $ 81,406 $ 1,236 $ 1,645,436 $ 4,724,064 $3,181,680 $ $ 33,912 $479,097 $ 10,418,790 Schedule 3A

26 Schedule 3B AQUA PENNSYLVANIA, INC. APPLICATION OF PRESENT AND SETTLEMENT RATES TO PRIVATE AND PUBLIC FIRE HYDRANTS AS OF JUNE 30, 2012 Number of Under Present Rates Under Proposed Rates Description Hydrants Rate Revenue Rate Revenue Private Fire Hydrants: Main 1, $54.60 $ 864,536 $54.60 $ 864,536 Main, Qualified Private Hydrant Bristol Bensalem Roaring Creek , ,682 Fawn Lake , ,978 Eagle Rock , ,342 Honesdale , ,098 Total Private Fire 1, $ 963,967 $ 971,011 Total with 7.5% DSIC $ 1,036,265 Public Fire Hydrants: Main Division 11, $25.25 $3,437,384 $25.25 $ 3,437,384 Media , ,067 Brad. Glen/ L. Wash , ,272 Malvern , ,632 Schuylkill , ,630 West Chester , ,216 Cost of 25% 3, , ,050,258 White Rock/Midway Manor , ,938 Other Divisions ( > Main Rate , ,927 Bristol , ,270 Bensalem 1, , ,094 Chaffont , ,560 Roaring Creek , ,416 NUI-II , ,280 Fawn Lake Pinecrest , ,408 Emlenton , ,848 NUI Ill/Onieda ,320 Kratzerville , ,104 Honesdale , ,024 Total Public Fire 20, $5,559,321 $ 5,632,440

27 Schedule 4 Page 1 of 44 AQUA PENNSYLVANIA, INC. 01-MAIN APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY 5/8 3,323, ,175,312 3/4 113, ,128, , ,829, /2 1, , , , ,344 5/8,3/4 1, ,558 5/8,1 91, ,699,688 5/8,1-1/2 33, ,637 5/8, , 024 3/4,1 2, ,545 3/4,1-1/2 3, ,865 3/4, ,467 1,1 1, ,654 1,1-1/2 2, ,938 1, ,319 3,636, ,282,612 FIRST , 740, ,632,831 OVER , 581, ,544, , 321, ,177,147 SUBTOTAL 3,636, , 321, ,459,759 SUBTOTAL

28 Schedule 4, Page 2 of 44 AQUA PENNSYLVANIA, INC. 01-MAIN APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL. BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) COMMERCIAL - MONTHLY 5/8 79, ,277,824 3/4 16, , , ,322, /2 20, ,838, f ,978, , ,431, , ,484, , ,048, , , , , , ,376,166 FIRST , 408, , 408, 960 NEXT , 100, , 630, 574 NEXT 3, , 880, , 607, 437 OVER 3, , 386, , 261, 508 SUBTOTAL 178,962 0 r~ CO CO -J 777, , 908, 479 T77, , 284, 645 INDUSTRIAL - MONTHLY 5/8. 2, ,616 3/ , , , / , , , , , , , , , ,244 7, ,101,520

29 Schedule 4 Page 3 of44 AQUA PENNSYLVANIA^ INC. 01-MAIN APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT CD (2) (3) (4) (5) INDUSTRIAL - MONTHLY FIRST , ,173 NEXT , ,031 NEXT 3, ,635, ,920,689 NEXT 30, ,377, ,252,702 NEXT 66, ,140, ,900,690 OVER 100, , , ,523,778 9,207,987 SUBTOTAL 7, ,523,778 10,309,507 PUBLIC - MONTHLY 5/8 3, ,224 3/4 1, , , , /2 1, , , , , , , , , ,180 5/8,1-1/ , ,572,728 FIRST , ,884 NEXT , ,905 NEXT 3, ,584, ,883,673 OVER 3, ,152, , ,226,656 4,042,678 SUBTOTAL 13,172 5,226,656 5,615,406

30 Schedule 4 Page 4 of 44 AQUA PENNSYLVANIA, INC. 01-MAIN APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) SALES TO OTHER WATER.UTILITIES - MONTHLY 5/ , ,932 OVER , ,007 SUBTOTAL 30 46,425 51,939 INDUSTRIAL, CONTRACT - MONTENAY ,344 OVER 0 0 2,044, ,975 SUBTOTAL 12 2,044, ,319 SALES TO OTHER WATER UTILITIES - BRISTOL , , , , ,844 OVER , ,733 SUBTOTAL , ,577

31 Schedule 4 Page 5 of 44 AQUA PENNSYLVANIA, INC. 01-MAIN APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT CD (2) (3) (4) (5) INDUSTRIAL CONTRACT - LIBERTY POWER , ,027,198 OVER 0 0 7,216, ,007 SUBTOTAL 12 7,216,900 1,696,205 OTHER WATER UTILITIES CONTRACT - SCHWENKSVILLE ,084 OVER , ,398 SUBTOTAL , ,482 OTHER WATER UTILITIES CONTRACT - WARWICK MINS & ALLOWS 8 182, , 190, , ,147 OVER ALLOWANCE UP TO 243, , ,406 OVER 243, , , , ,377 SUBTOTAL 12 2,968, ,524

32 Schedule 4 Page 6 of 44 AQUA PENNSYLVANIA, INC. 01-MAIN APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, 100 GALLONS (1) NUMBER OF BILLS (2) TOTAL CONSUMPTION (3) RATE (4) BILLING AMOUNT (5) OTHER WATER UTILITIES CONTRACT - HORSHAM ,084 OVER 0 0 1,060, ,904 SUBTOTAL 12 1,060, ,988 OTHER WATER UTILITIES CONTRACT - BUCKS COUNTY , ,096 OVER , ,259 SUBTOTAL ,670 55,355 ' TOTAL 3,836, ,440, , 795,706

33 Schedule 4 Page 7 of 44 AQUA PENNSYLVANIA, INC. 09-OTHER MAIN APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY 5/8 519, , 306,960 3/4 7, , , , / , , , , , , 592,256 FIRST ,707, , 898,793 OVER ,547, , 883, ,255,506 17, 782,638 SUBTOTAL 528,047 18,255,506 CM 374,894 COMMERCIAL - MONTHLY 5/8 23, ,528 3/4 3, , , , /2 2, , , , , , , , , , ,748 36, ,507,535 FIRST / 613, , 613, 160 NEXT , 404, , 234, 023 NEXT 3, , 212, , 341, 548 OVER 3, , 092, , , 323, 068 5, 91-7, 099 SUBTOTAL 36,723 7, 323, 068 7, 424, 634

34 Schedule 4 Page 8 of 44 AQUA PENNSYLVANIA, INC. 09-OTHER MAIN APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER ^ TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) INDUSTRIAL - MONTHLY 5/ , 848 3/ , , / , , , , , ,713 FIRST , ,864 NEXT , ,555 NEXT 3, , ,095 NEXT 30, ,032, ,355,438 NEXT 66, ,735, ,050,422 OVER 100, ,466, ,678, , 769, ,496,846 SUBTOTAL 904 7,769,837 4, 599,559 PUBLIC - MONTHLY 5/ , , , , , ,542 FIRST , ,815 NEXT , ,270 NEXT 3, , ,466 OVER 3, ,393, ,596, ,604,911 1,756,706 SUBTOTAL 173 2,604,911 1,813,248

35 Schedule 4 Page 9 of 44 AQUA PENNSYLVANIA, INC. 09-OTHER MAIN APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) INDUSTRIAL CONTRACT - MT CARMEL MINS & ALLOWS 6 125, ,500,000 33, ,000 OVER ALLOWANCE OVER ' 125, ,091, ,549 SUBTOTAL 12 2,591, ,549 PUBLIC CONTRACT -SCI FOREST COUNTY PRISON MINS & ALLOWS 4 91, ,042 61, ,370 OVER ALLOWANCE UP TO NEXT NEXT 3, OVER 3, SUBTOTAL , ,370 PUBLIC CONTRACT - CANAAN FEDERAL PRISON MINS & ALLOWS 10 45, ,000 22, ,213 OVER ALLOWANCE OVER 45, , ,269 SUBTOTAL , ,482

36 Schedule 4 Page 10 of 44 AQUA PENNSYLVANIA, INC. 09-OTHER MAIN APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, 100 GALLONS (1) NUMBER OF BILLS (2) TOTAL CONSUMPTION (3) RATE (4) BILLING AMOUNT (5) OTHER WATER UTILITIES CONTRACT - NEW WILMINGTON 4 12 ' ,016 OVER , ,972 SUBTOTAL , ,988 OTHER WATER UTILITIES CONTRACT - MASURY WATER COMPANY ,344 OVER , ,119 SUBTOTAL , ,463 OTHER WATER UTILITIES CONTRACT - BOROUGH OF SHARPSVILLE , ,192 OVER 0 0 1,901, ,707 SUBTOTAL 24 1,901, ,899 TOTAL 565,931 43,759,039 42, 976,086

37 Schedule 4 > Page 11 of 44 AQUA PENNSYLVANIA, INC. 15-BENSALEM DIVISION APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, 100 GALLONS (D NUMBER OF BILLS (2) TOTAL CONSUMPTION (3) RATE (4) BILLING AMOUNT (5) RESIDENTIAL - MONTHLY 5/8 172, ,755,360 3/ , , / , , , ,771,649 OVER 0 0 8,621, ,586,781 SUBTOTAL 172,604 8,621,342 10,358,430 COMMERCIAL - MONTHLY - 5/8 7, ,440 3/ , , , /2 2, , , , , , , , ,956 15, ,121,730 FIRST , ,297 NEXT ,215, ,069,655 NEXT 3, ,004, ,918,536 OVER 3, ,727, ,818, ,847,663 6,599,005 SUBTOTAL 15,223 8,847,663 7,720,735

38 Schedule 4 Page 12 of 44 AQUA PENNSYLVANIA, INC. 15-BENSALEM DIVISION APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS ' FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) INDUSTRIAL, - MONTHLY 5/ ,824 3/ , , / , , , , ,762 FIRST , ,850 NEXT , ,408 NEXT 3, , ,477 NEXT 30, , ,456 NEXT 66, OVER 100, , ,191 SUBTOTAL , ,953 PUBLIC - MONTHLY 5/ ,184 3/ , / , , , , ,226 FIRST , ,773 NEXT , ,296 NEXT 3, , ,547 OVER 3, , , , ,481 SUBTOTAL , ,707 TOTAL 189,437 18, 258,035 18,842,825

39 Schedule 4 Page 13 of 44 AQUA PENNSYLVANIA, INC. 19-CHALFONT DIVISION APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, 100 GALLONS (1) NUMBER OF BILLS (2) TOTAL CONSUMPTION (3) BILLING RATE AMOUNT (4) (5) RESIDENTIAL - MONTHLY 5/8 25, ,245 3/ /8,1-1/ , ,752 OVER 0 0 1,158, ,587 SUBTOTAL 25,379 1,158,573 1,204,339 COMMERCIAL - MONTHLY 5/8 1, ,665 3/ , / , , ,344 1, ,358 OVER , ,267 SUBTOTAL 1, , ,625

40 " i Schedule 4 Page 14 of 44 AQUA PENNSYLVANIA, INC. 19-CHALFONT DIVISION APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) INDUSTRIAL - MONTHLY 5/ , ,774 OVER , ,312 SUBTOTAL 71 20,158 18,086 PUBLIC - MONTHLY 5/ , ,530 OVER , , 447 SUBTOTAL 58 11,897 14,977 TOTAL 27,272 1,338,891 1,380,027

41 Schedule 4 Page 15 of 44 AQUA PENNSYLVANIA, INC. ' 20-HEDGEROW DIVISION APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED.JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY 5/8 2, ,960 FIRST , ,804 OVER , , ,466 86,665 SUBTOTAL 2, , ,625 TOTAL 2, , ,625

42 , Schedule 4 Page 16 of 44 AQUA PENNSYLVANIA, INC. 34-WESTERN, FAWN LAKE, AND WOODLEDGE VILLAGE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY 5/8 19, ,136 FIRST , ,191 OVER , , , ,169 SUBTOTAL 19, , ,305 COMMERCIAL - MONTHLY 5/ , , o , , 292 FIRST , , 979 NEXT , ,251 NEXT 3, , , 801 OVER 3, '20,003 16, SUBTOTAL ,003 23,736 TOTAL 19, , ,041

43 Schedule 4 Page 17 of 44 AQUA PENNSYLVANIA, INC. 41-WHITE HAVEN APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (I) (2) (3) (4) (5) RESIDENTIAL - MONTHLY 5/8 5, , / ,079 5, ,543 FIRST , ,435 OVER , , , ,191 SUBTOTAL 5, , ,734 COMMERCIAL - MONTHLY 5/ , , / , , ,400 FIRST , ,070 NEXT , ,188 NEXT 3, , ,451 OVER 3, ,545.38,756 SUBTOTAL ,545 50,156 TOTAL 5, , ,890

44 Schedule 4 Page 18 of 44 AQUA PENNSYLVANIA, INC. 45-PINECREST APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) f 4) (5) RESIDENTIAL - MONTHLY 5/8 3, ,036 FIRST , ,926 OVER , , ,178 43,055 SUBTOTAL 3,386 54, ,091 TOTAL 3,386 54, ,091

45 Schedule 4 Page 19 of 44 AQUA PENNSYLVANIA, INC. 47-EAGLE ROCK APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT id- (2) (3) (4) (5) RESIDENTIAL - MONTHLY service CHGS 5/8 9, , ,121 9, ,363 FIRST , /456 OVER , , , ,527 SUBTOTAL 9, , ,890 COMMERCIAL - MONTHLY 5/ , / , , ,647 FIRST , ,845 NEXT , , 954 NEXT 3, , ,370 OVER 3, ,661 24,169 SUBTOTAL ,661 43,816 TOTAL 10, , ,706

46 Schedule 4 Page 20 of 44 AQUA PENNSYLVANIA, INC. 60-WOODLOCH PINES APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) COMMERCIAL - MONTHLY ,535 FIRST , ,200 NEXT , ,456 NEXT 3, , ,237 OVER 3, , , ,354 84, 143 SUBTOTAL ,354 85,678 TOTAL ,354 85,.678

47 Schedule 4 Page 21 of 44 AQUA PENNSYLVANIA, INC. 62-MARIENVILLE AND APPLEWOOD APPLICATION OF SETTLEMENT RATES. TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY 5/8 4, , 064 3/ , , 070 4, , 379 FIRST , , 659 OVER , , , , 178 SUBTOTAL 4, , , 557 COMMERCIAL - MONTHLY 5/ , / , , ,180 FIRST , , 470 NEXT , , 171 NEXT 3, , , 649 OVER 3, '65, , 301 SUBTOTAL , , 481

48 Schedule 4 Page 22 of 44 AQUA PENNSYLVANIA, INC. 62-MARIENVILLE AND APPLEWOOD APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 3.0, 2011 RATE BLOCK, 100 GALLONS (1) NUMBER OF BILLS (2) TOTAL CONSUMPTION (3) RATE (4) BILLING AMOUNT (5) INDUSTRIAL - MONTHLY FIRST NEXT NEXT 3, NEXT 30, NEXT 66, OVER 100, SUBTOTAL TOTAL 4, , ,808

49 Schedule 4 Page 23 of 44 AQUA PENNSYLVANIA, INC. 82-OAKLAND BEACH APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY SERVICE 5/8 3/4 1 CHGS 9, ,595 2,773 2,288 9, ,656 FIRST OVER , , ,248 46, , ,282 SUBTOTAL 9, , ,938 COMMERCIAL - MONTHLY SERVICE 5/8 3/ /2 CHGS , ,121 1, ,206 FIRST , ,103 NEXT , ,376 NEXT 3, , , 817 OVER 3, ,343 21,296 SUBTOTAL ,343 28,502

50 Schedule 4. Page 24 of 44 AQUA PENNSYLVANIA, INC. 82-OAKLAND BEACH APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1)' (2) (3) (4) (5) INDUSTRIAL - MONTHLY 5/ FIRST , ,200 NEXT , ,456 NEXT 3, , ,180 NEXT 30, NEXT 66, OVER 100, , 360 6,836 SUBTOTAL 12 8,360 7, 118 TOTAL 9, , ,558

51 Schedule 4 Page 25 of 44 AQUA PENNSYLVANIA, INC. 87-COUNTRY CLUB GARDENS APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR 'THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY - 5/8 4, , , ,015 FIRST , ,252 OVER , , , ,101 SUBTOTAL 4, , ,116 COMMERCIAL - MONTHLY 5/ FIRST , NEXT , , 551 NEXT 3, OVER 3, ,484 2, 439 SUBTOTAL 12 3, 484 2,619 TOTAL 4, , ,735

52 Schedule 4 Page 26 of 44 AQUA PENNSYLVANIA, INC. 88-COVE VILLAGE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY 5/8 1, , , ,240 FIRST , ,358 OVER ' , , ,459 51,901 SUBTOTAL 1,742 53,459 80,141 COMMERCIAL - MONTHLY 5/ FIRST , ,239 NEXT NEXT 3, OVER 3, , 940 ' 1,855 SUBTOTAL 37 1,940 2,447 TOTAL 1, ,399 82,588

53 Schedule 4 Page 27 of 44 AQUA PENNSYLVANIA, INC. 8 9-PAUPAKEN LAKE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011' RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY 5/ , 760 FIRST , ,877 OVER , , ,206 3, 947 SUBTOTAL 360 4,206 9,707 TOTAL 360 4,206 9, 707

54 Schedule 4 Page 28 of 44 AQUA PENNSYLVANIA, INC. 90-CLARENDON APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR 'THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY 5/8 3, , , ,208 FIRST , ,967 OVER , , ,350 98,429 SUBTOTAL 3, , ,637 COMMERCIAL - MONTHLY 5/ , , / ,448 FIRST , ,584 NEXT , , 307 NEXT 3, , ,133 OVER 3, ,619 17,024 SUBTOTAL 228,23,619 22,-472 TOTAL 3, , ,109

55 Schedule 4 Page 29 of 44 AQUA PENNSYLVANIA, INC. 91-CS WATER (MASTHOPE) APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL'- MONTHLY MINS & ALLOWS 5/8 0 14, , , ,860 OVER ALLOWANCE UP TO , ,551 OVER , , , ,282 SUBTOTAL 14, , ,142 COMMERCIAL - MONTHLY MINS & ALLOWS 5/ , , 159 OVER ALLOWANCE UP TO , ,276 NEXT NEXT 3, OVER 3, , 174 3,062 SUBTOTAL 36 3,174 5,221 TOTAL 14, , ,363

56 Schedule 4 Page 30 of 44 AQUA PENNSYLVANIA, INC. 93-EMLENTON APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR 'THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY 5/8 3, ,096 FIRST , ,911 OVER , , , ,010 SUBTOTAL 3, , ,106 COMMERCIAL - MONTHLY 5/ , , , ,223 FIRST , ,620 NEXT , ,674 NEXT 3, , ,247 OVER 3, ,458 42,541 SUBTOTAL ,458 57,764

57 Schedule 4 Page 31 of 44 AQUA PENNSYLVANIA, INC. 93-EMLENTON APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) 1-1/2 12 INDUSTRIAL MONTHLY ,079 FIRST NEXT NEXT 3, NEXT 30,000 0 NEXT 66,667 0 OVER 100,000 0 SUBTOTAL , ,200 2, ,456 18, , ,840 17,390 22,840 18,469 TOTAL 4, , ,339

58 Schedule 4 Page 32 of 44 AQUA PENNSYLVANIA, INC. 95-LAKESIDE ACRES APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY 5/8 1, ,846 3/ ,121 1, ,813 FIRST , ,661 OVER , , ,454 57,829 SUBTOTAL 1, ,454 98,642 COMMERCIAL - MONTHLY 5/ ,857 FIRST , , 186 NEXT NEXT 3, OVER 3, ,826 2, 746 SUBTOTAL 79 2, 826 4, 603 TOTAL 1,792 77, ,245

59 Schedule 4 Page 33 of 44 AQUA PENNSYLVANIA, INC. 96-WASHINGTON PARK - SLEEPY HOLLOW APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3).(4) (5) RESIDENTIAL - MONTHLY - 5/8 1, ,00 29,616 FIRST , ,975 OVER , ,365 \ 0 79,901 78,340 SUBTOTAL 1,851 79, ,956 COMMERCIAL - MONTHLY 3/ , , 671 FIRST , , 200 NEXT , , 585 NEXT 3, OVER 3, ,614 12,827 SUBTOTAL 72 13,614 15,498 TOTAL 1,923 93, ,454

60 Schedule 4 Page 34 of 44 AQUA PENNSYLVANIA, INC. 98-KRATZERVILLE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS - FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, 100 GALLONS (1) NUMBER OF BILLS (2) TOTAL CONSUMPTION (3) RATE (4) BILLING AMOUNT (5) RESIDENTIAL - MONTHLY 5/8 1 1, , , ,904 OVER , ,954 SUBTOTAL 1, ,443 77,858 COMMERCIAL - MONTHLY 5/ OVER SUBTOTAL TOTAL 1, ,178 78,670

61 Schedule 4 Page 35 of 44 AQUA PENNSYLVANIA, INC. 99-HONESDALE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - MONTHLY 5/8 ' 15, ,896 FIRST , ' 205,278 OVER , , , ,134 SUBTOTAL 15, , ,030 COMMERCIAL - MONTHLY 5/8 1, ,736 3/ , , / , , , , 016 2, ,443 FIRST , ,068 NEXT , ,084 NEXT 3, , ,524 OVER 3, , , , ,010 SUBTOTAL '2, , ,453 i

62 Schedule 4 Page 36 of 44 AQUA PENNSYLVANIA, INC. 99-HONESDALE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE' BLOCK, NUMBER 100 GALLONS OF BILLS (1) (2) TOTAL CONSUMPTION (3) RATE (4) BILLING AMOUNT (5) INDUSTRIAL - MONTHLY 5/ , , ,011 FIRST , ,366 NEXT , ,182 NEXT 3, NEXT 30,000 0 o NEXT 66, OVER 100, ,354 5, 840 SUBTOTAL 74 7,354 11,851 PUBLIC - MONTHLY 5/ ,696 3/ , /2 ' , , , 905 FIRST , , 696 NEXT , , 106 NEXT 3, , , 413 OVER 3, , , , , 677 SUBTOTAL , , 582

63 Schedule 4 Page 37 of 44 AQUA PENNSYLVANIA, INC. 99-HONESDALE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 i RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) / RESIDENTIAL - 2 UNITS 5/8 1, ,472 FIRST , ,208 OVER , , ,819 71,675 SUBTOTAL 1, ,819 95,147 RESIDENTIAL - 3 UNITS 5/ , 392 FIRST , ,951 OVER , , ,563 29,178 SUBTOTAL ,563 36,570 RESIDENTIAL - 4 UNITS 5/ ,640 FIRST , , 456 OVER , , ,898 22,263 SUBTOTAL ,898 26,903

64 Schedule 4 Page 38 of 44 AQUA PENNSYLVANIA, INC. 99-HONESDALE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK', NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) RESIDENTIAL - 5 UNITS 5/ / ,044 FIRST OVER , , ,724 7,760 SUBTOTAL 48 9, 724 8,804 RESIDENTIAL - 6 UNITS 3/ FIRST OVER , , , 224 5, 765 SUBTOTAL 36 7,224 6, 755

65 Schedule 4 Page 39 of 44 AQUA PENNSYLVANIA, INC. 99-HONESDALE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) COMMERCIAL - 2 UNITS 5/ ,128 3/ , , , ,686 FIRST , ,240 NEXT , ,914 NEXT 3, , ,167 OVER 3, , ,359 56,271 SUBTOTAL ,359 74,957 COMMERCIAL - 3 UNITS 5/ ,128 3/ , / , ,318 FIRST , ,735 NEXT , ,118 NEXT 3, , ,618 OVER 3, ,502 20,471 SUBTOTAL ,502 25,789

66 Schedule 4 Page 40 of 44 AQUA PENNSYLVANIA, INC. 99-HONESDALE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) COMMERCIAL - 4 UNITS 5/ / , , , 633 [ FIRST , ,675 NEXT , , 709 NEXT 3, OVER 3, , 674 6,456 SUBTOTAL 84 7, 674 9,089 COMMERCIAL - 5 UNITS 5/ / / , ,315 FIRST , ,254 NEXT , NEXT 3, OVER 3, ,953 5, 136 SUBTOTAL 72 5, 953 7, 451

67 Schedule 4 Page 41 of 44 AQUA PENNSYLVANIA, INC. 99-HONESDALE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) i(3) (4) (5)' COMMERCIAL - 6 UNITS. ' ,535 FIRST , ,060 NEXT , ,980 NEXT 3, ' OVER 3, ' ; 0 0 3,990 3, 135 SUBTOTAL 12 3,990 4,6,70 COMMERCIAL - 7 UNITS 5/ [92 3/ FIRST , , 203' NEXT , ,326 NEXT 3, , ,146 OVER 3, , 0 0 8,357 5, 675 SUBTOTAL 36 8,357 6,527

68 Schedule 4 Page 42 of 44 AQUA PENNSYLVANIA, INC. 99-HONESDALE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) COMMERCIAL - 8 UNITS 3/ FIRST , ,038 NEXT NEXT 3, OVER 3, , 223 1,822 SUBTOTAL 12 2,223 2,152 COMMERCIAL - 11 UNITS FIRST , ,060 NEXT , , 156 NEXT 3, , OVER 3, ,299 4, 144 SUBTOTAL 12 6,299 4, 704

69 Schedule 4 Page 43 of 44 AQUA PENNSYLVANIA, INC. 99-HONESDALE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3) (4) (5) COMMERCIAL - 18 UNITS ,535 FIRST , , 060 NEXT , , 121 NEXT 3, , OVER 3, ,980 4, 000 SUBTOTAL 12 5, 980 5, 535 COMMERCIAL - 22 UNITS FIRST , , 060 NEXT , , 170 NEXT 3, , ,604 OVER 3, , 005 4, 834 SUBTOTAL 12 8, 005 5, 394

70 Schedule 4 Page 44 of 44 AQUA PENNSYLVANIA, INC. 99-HONESDALE APPLICATION OF SETTLEMENT RATES TO CONSUMPTION ANALYSIS FOR THE TWELVE MONTHS ENDED JUNE 30, 2011 RATE BLOCK, NUMBER TOTAL BILLING 100 GALLONS OF BILLS CONSUMPTION RATE AMOUNT (1) (2) (3).(4) (5) COMMERCIAL - 40 UNITS ,535 FIRST , ,060 NEXT , ,170 NEXT 3, , OVER 3, ,430 4, 204 SUBTOTAL 12 6,430 5, 739 COMMERCIAL - 58 UNITS ,535 FIRST , , 060 NEXT , , 170 NEXT 3, , , 042 OVER 3, ,100 5, 272 SUBTOTAL 12 9,100 6,807 TOTAL 21,785 1,317,931 1,348,909 V

71 Attachment D Wastewater

72 $ff>erfd>x]5 Little Washington Wastewater/^ompany - Southeast Division R-20$ Present and Settlement Revenue Summary Total Total Present Year 1 Revenue Year 2 Revenue Revenue Increase Year 1 Increase Year 2 Media 1,254,494 $646,845 $1,901,339 $146,513 $2,047,852 Greens at Penn Oaks 86,305 $10,884 $97,189 $0 $97,189 Twin Hills 217,325 $50,338 $267,663 $0 $267,663 New Daleville 80,074 $25,982 $106,056 $0 $106,056 Newlin Green 59,001 $36,086 $95,087 $0 $95,087 Peddlers View 184,027 $16,561 $200,588 $0 $200,588 Little Washington 419,437 $37,291 $456,728 $0 $456,728 Chesterdale 484,530 $28,507 $513,037 $0 $513,037 Plumsock 46,044 $0 $46,044 $0 $46,044 Bridlewood 246,200 $0 $246,200 $0 $246,200 Links of Gettysburg 83,002 $0 $83,002 $0 $83,002 East Bradford 98,640 $0 $98,640 $0 $98,640 Deerfield Knoll 78,461 $0 $78,461 $0 $78,461 TOTAL $3,337,541 $852,493 $4,190,034 $146,513 $4,336,547 /

73 Little Washington Wastewater Company Media Bill Analysis Proposed Monthly Rates: Media Customer Charge (1,673 Homes 5/8" Meter) Customer Charge (4 Homes 3/4" Meter) Customer Charge (45 Homes 1 Meter) Customer Charge (16 Homes 1.5" Meter) Customer Charge (8 Homes 2" Meter) Customer Charge (1 Home 3" Meter) Customer Charge (2 Homes 4" Meter) Consumption Commercial Charge (182 Homes 5/8" Meter) Commercial Charge (2 Homes 3/4" Meter) Commercial Charge (33 Homes 1" Meter) Commercial Charge (14 Homes 1.5" Meter) Commercial Charge (11 Homes 2" Meter) Commercial Charge (7 Homes 3" Meter) Commercial Charge (2 Homes 4" Meter) Consumption Industrial Charge (5/8" Meter) Consumption Public Charge (19 Units 5/8" Meter) Public Charge (1 Unite 3/4" Meter) Public Charge (10 Units 1" Meter) Public Charge (5 Units 1.5" Meter) Public Charge (2 Units 2" Meter) Public Charge (2 Units 3" Meter) Public Charge (2 Units 4" Meter) Consumption Total Annualized Company Units Rates Revenue 20, , , , , , , , , ,190 2, , , , , , ,828 44, , , , , , , ,828 9, ,186 1,320,788 Greens at Penn Oaks Customer Charge (70 Single Family) Consumption Commercial Charge Consumption Total Annualized Company Units Rates Revenue ,330 2, , , ,466 97,189 Twin Hills Customer Charge (330 Single Family) Consumption Total Annualized Company Units Rates Revenue 3, ,840 17, , ,983 New Daleville Customer Charge (125 Single Family) Consumption Total Annualized Company Unite Rates Revenue 1, , ,960

74 Newlin Green Customer Charge (49 Single Family) Consumption Total Peddlers View Customer Charge (214 Single Family) Consumption Total Annualized Company Units Rates Revenue ,680 4, ,407 98,087 Annualized Company Units Rates Revenue 2, ,672 12, , ,623 Little Washington Customer Charge (344 Single Family) Consumption Total Annualized Company Units Rates Revenue 4, ,472 14, , ,167 Chesterdale Customer Charge (730 Single Family) Consumption Commercial Charge (Apartment Complex) Consumption Total Annualized Company Units Rates Revenue 8, ,680 27, , ,796 3, , ,837 Plumsock Customer Charge (38 Single Family) Consumption Total Annualized Company Units Rates Revenue ,360 2, ,587 45,947 Bridlewood Customer Charge (115 Single Family) Customer Charge (195 Town Home) Commercial Charge (Day Care) Flat Commercial Charge (Apartment Complex) Flat Consumption Total Annualized Company Units Rates Revenue 1, ,680 2, , , , ,128 13, , ,416 Links of Gettysburg Customer Charge (99 Single Family) Consumption Commercial Charge (Apartment Complex) Consumption Total Annualized Company Units Rates Revenue 1, ,272 3, , , ,675 82,741

75 East Bradford Annualized Company Units Rates Revenue Customer Charge (80 Single Family) ,600 Consumption 5, ,649 Total 98,449 Deerfield Knoll Annualized Company Units Rates Revenue Customer Charge (118 Single Family) 1, ,720 Consumption 4, ,635 total 78,358 Grand total Bill Analysis 3,537,542

76 Little Washington Wastewater Company Media Bill Analysis Proposed Monthly Rates: Annualized Company Media Units Rates Revenue Customer Charge (1,673 Homes 5/8" Meter) 20, ,212 Customer Charge (4 Homes 3/4" Meter) ,200 Customer Charge (45 Homes 1" Meter) ,520 Customer Charge (16 Homes 1.5" Meter) ,088 Customer Charge (8 Homes 2" Meter) ,840 Customer Charge (1 Home 3" Meter) ,368 Customer Charge (2 Homes 4" Meter) ,256 Consumption 102, ,526 Commercial Charge (182 Homes 5/8" Meter) 2, ,835 Commercial Charge (2 Homes 3/4" Meter) Commercial Charge (33 Homes 1" Meter) ,048 Commercial Charge (14 Homes 1.5" Meter) ,952 Commercial Charge (11 Homes 2" Meter) ,780 Commercial Charge (7 Homes 3" Meter) ,576 Commercial Charge (2 Homes 4" Meter) ,256 Consumption 44, ,646 Industrial Charge (5/8 Meter) Consumption Public Charge (19 Units 5/8" Meter) ,637 Public Charge (1 Units 3/4' Meter) Public Charge (10 Units 1" Meter) ,560 Public Charge (5 Units 1.5" Meter) ,340 Public Charge (2 Units 2" Meter) ,960 Public Charge (2 Units 3" Meter) ,736 Public Charge (2 Units 4" Meter) ,256 Consumption 9, ,468 Total 1,467,302 Greens at Penn Oaks Annualized Company Units Rates Revenue Customer Charge (70 Single Family) ,330 Consumption 2, ,798 Commercial Charge ,595 Consumption ,466 Total 97,189 Twin Hills Annualized Company Units Rates Revenue Customer Charge (330 Single Family) 3, ,840 Consumption 17, ,143 Total 266,983 NewDalevllle Annualized Company Units Rates Revenue Customer Charge (125 Single Family) 1, ,960 Consumption Total 105,960

77 Newlin Green Customer Charge (49 Single Family) Consumption Total Peddlers View Customer Charge (214 Single Family) Consumption Total Annualized Company Units Rates Revenue ,680 4, ,407 95,087 Annualized Company Units Rates Revenue 2, ,672 12, , ,623 Little Washington Customer Charge (344 Single Family) Consumption Total Chesterdale Customer Charge (730 Single Family) Consumption Commercial Charge (Apartment Complex) Consumption Total Annualized Company Units Rates Revenue 4, ,472 14, , ,167 Annualized Company Units Rates Revenue 8, ,680 27, , ,796 3, , ,837 Plumsock Customer Charge.(38 Single Family) Consumption Total Annualized Company Units Rates Revenue ,360 2, ,587 45,947 Bridiewood Customer Charge (115 Single Family) Customer Charge (195 Town Home) Commercial Charge (Day Care) Flat Commercial Charge (Apartment Complex) Flat Consumption Total Annualized Company Units Rates Revenue 1, ,680 2, , , , ,128 13, , ,416 Links of Gettysburg Customer Charge (99 Single Family) Consumption Commercial Charge (Apartment Complex) Consumption Total Annualized Company Units Rates Revenue 1, ,272 3, , , ,675 92,741

78 East Bradford Annualized Company Units Rates Revenue Customer Charge (80 Single Family) ,600 Consumption S ,849 Total 98,449 Deerfield Knoll Annualized Company Units Rates Revenue Customer Charge {118 Single Family) 1, ,720 Consumption 4, ,635 Total 1 76,355 Grand total Bill Analysis 3,684,056 v

79 Cxtyb'd fyptht/u 3 ZolO Little Washington Wastewaten^Company - Masthope Division R-^ Present and Settlement Revenue Summary Total Total BMed Forfeited Total Present Revenue Discount Revenue Proposed Revenue Increase Increase. Increase Revenue Masthope 351,815 $113,472 $1,528 $115,000 $466,815 TOTAL $351,815 $113,472 $1,528 $115,000 $466,815

80 Little Washington Wastewater Company Masthope Bill Analysis Present Monthly Rates: Annualized Company Units Rates Revenue Residential Charge (1,206 Single Family) 14, ,992 Availability Charge (639 Customers) 7, ,008 Commercial Charge (8 Units) ,983 Total 346,983 Proposed Monthly Rates: Annualized Company Units Rates. Revenue Residential Charge (1,206 Single Family) 14, ,165 Consumption 42, ,230 Commercial Charge (6 Units) ,588 Consumption Availability Charge (639 Customers) 7, ;00 46,008 Total 460,455 Consumption Companyin Gallons Present Proposed Increase Monthly Rates Rates Decrease Percent , % 2, % 2,900 * % 3, % 3, % ' 4, % 5, % 6, % 7, % 8, % 9, % 10, % 11, % 12, % 13,000 ' % 14, % 15, % 16, % 17, % V : 18, % 19,000 ' % 20, % average residential usage

81 ftypwdty & Little Washington Wastewater Company - Northeast Division R Present and Settlement Revenue Summary Present Revenue Yearl Increase Total Revenue Year 1 Year 2 Increase Total Revenue Year 2 Woodloch Springs 451,745 $83,179 $534,924 $0 $534,924 Pinecrest 234,117 $56,129 $290,246 $0 $290,246 Eagle Rock 206,005 $114,329 $320,334 $29,874 $350,208 Thomhurst 91,694 $47,560 $139,254 $45,627 $184,881 Laurel Lakes 53,543 $37,202 $90,745 $25,561 $116,306 White Haven 435,865 $116,846 $552,711 $0 $552,711 Rivercrest 120,906 $0 $120,906 $0 $120,906 TOTAL $1,593,875 $455,245 $2,049,120 $101,062 $2,150,182

82 Little Washington Wastewater Company Woodloch Springs Bill Comparison Present Monthly Rates: Customer Charge (Residential) Customer Charge (Woodloch Pines) Customer Charge (Clubhouse) Customer Charge (Lodge) , , Consumption Charge per 1,000 gallons Average Increase Requested % Present Revenue Increase per Settlement Total Revenues Average Increase 451,745 83, , % Proposed Monthly Rates: Units Customer Charge (419 Residential) 5,028 Customer Charge (Woodloch Pines) 12 Customer Charge (Clubhouse) 48 Customer Charge (Lodge) 12 Company Settlement Rates Revenue Rates Revenue , ,316 18, ,000 18, , , ,546 3, ,684 3, ,684 Consumption 16, , ,378 Total 534, ,924

83 Little Washington Wastewater Company Pinecrest Division Bill Comparison Present Monthly Rates: Customer Charge (Residential) Customer Charge (Commercial 1) Customer Charge (Commercial 2) Customer Charge (Commercial 3) Consumption Charge (Commerical per 1,000 gallons Average Increase Requested % Present Revenue Increase per Settlement Total Revenues Average Increase 234,117 56, , % Proposed Monthly Rates: Units Customer Charge (325 Residential) 3,900 Customer Charge (Commercial 1) 12 Customer Charge (Commercial 2) 24 Customer Charge (Commercial 3) 12 Company Settlement Rates Revenue Rates Revenue , , , , , , Consumption 4, , ,941 Total 290, ,246 \

84 Little Washington Wastewater Company Eagle Rock Bill Comparison Present Monthly Rates: Customer Charge (Residential) Customer Charge (Eagle Rock Inn) Customer Charge (Eagle Rock Lodge) Customer Charge (Clubhouse) Consumption Charge per 1,000 gallons Average Increase Requested % Present Revenue 206,005 Increase per Settlement 144,203 Total Revenues 350,208 Average Increase 70.00% Proposed Monthly Rates: Company Units Rates Revenue Customer Charge (737 Residential) 8, ,494 Customer Charge (Eagle Rock Inn) ,392 Customer Charge (Eagle Rock Lodge) ,310 Customer Charge (Clubhouse) ,696 Step 1 Step 2 Settlement Settlement Rates Revenue Rates Revenue , , , , , , , ,408 Consumption 19, , , , Total 377, , ,208

85 Little Washington Wastewater Company Thomhurst Division Bill Comparison Present Monthly Rates: Customer Charge (Residential) Consumption Charge per 1,000 gallons Average Increase Requested % Present Revenue 91,694 Increase per Settlement 93,187 Total Revenues 184,681 Average Increase % Proposed Monthly Rates: Customer Charge (309 Residential) Company Units Rates 3, Revenue 173,349 Step 1 Step 2 Settlement Settlement Rates Revenue Rates Revenue , ,34 Consumption 9, , , , Total 184, , ,881

86 Little Washington Wastewater Company Laurel Lakes Division Bill Comparison Present Monthly Rates: Customer Charge (Residential) Consumption Charge per 1,000 gallons Average Increase Requested % Present Revenue 53,543 Increase per Settlement 62,763 Total Revenues Average Increase % Proposed Monthly Rates: Customer Charge (194 Residential) Company Units Rates 2, Revenue 102,432 Step 1 Step 2 Settlement Settlement Rates Revenue Rates Revenue , ,432 Consumption 11, , , , Total 116,306 90, ,306

87 LitOe Washington Wastewater Company White Haven BID Comparison Present Monthly Rates: Customer Charge (Residential Boro) Customer Charge (Residential Kidder Twp) Customer Charge (Commercial 1) Customer Charge (Commercial 2) Customer Charge (Commercial 4) Customer Charge (Commercial 5) Customer Charge (Commercial 6) Customer Charge (Commercial 7) Customer Charge (Commercial 8) Customer Charge (Commercial 9) Customer Charge (Commercial 10) Customer Charge (Commercial 11) Customer Charge (Commercial 12) Customer Charge (Commercial 13) Consumption Charge per 1,000 gallons Average Increase Requested % Present Revenue Increase per Settlement Total Revenues Average Increase , % Proposed Monthly Rates: Units Customer Charge (Residential Boro) s.sss Customer Charge (Residential Kidder Twp) 576 Customer Charge (Commercial 1) 12 Customer Charge (Commercial 2) 12 Customer Charge (Commercial 4) 12 Customer Charge (Commercial 5) 12 Customer Charge (Commercial 6) 12 Customer Charge (Commercial 7) 12 Customer Charge (Commercial 8) 12 Customer Charge (Commercial 9) 24 Customer Charge (Commercial 10) 12 Customer Charge (Commercial 11) Customer Charge (Commercial 12) Customer Charge (Commercial 13) Consumption 22,242.3 Total Company Settlement Rates Revenue Rates Revenue , '" 241, , ,000 6, ,000 6, , , ,000 3, ,000 3, ,000 1, , , ,000' , , , ,(XX) , , , , , , , , ,711

88 Little Washington Wastewater Company Rivercrest Division Bill Comparison Present Monthly Rates: Customer Charge (Residential) Consumption Charge per 1,000 gallons Average Increase Requested % 5.02 Present Revenue Increase per Settlement Total Revenues Average Increase 120, , % Proposed Monthly Rates: Customer Charge (214 Residential) Units 2,568 Company Settlement Rates Revenue Rates Revenue , ,336 Consumption 10, , ,570 Total 120, ,906

89 VERIFICATION I. William C. Packer. Vice President - Controller of Aqua Pennsylvania, Inc.,- hereby state that the facts set forth in my responses to the Attachment B and Attachment C information requests from the February 26, 2018 Secretarial Letter are true and correct to the best of my knowledge, information and belief and that I expect to be able to prove the same at a hearing held in this matter. I understand that the statements herein are made subject to the penalties of 18 Pa. C.S (relating to unsworn falsification to authorities). William C. Packer Vice President - Controller Aqua Pennsylvania, Inc. Dated: March 9, 2018 MAR 9 20t8 PA PUBLIC UTILITY COMMISSION SECRETARY'S BUREAU

90 ORIGIN ID:WAYA (610) ERIN FEENEY AQUA AMERICA 762 W. LANCASTER AVENUE BRYN MAWR, PA UNITED STAf ES US SHIP DATE: 09MAR18 ACTWGT: 1.00 LB CAD: /INET3980 BILL SENDER - K O e-"o UJ = '^ ^ 5 1 c S 2? _ 3 LLI x c O V t Q. O o 5 d> OJ 3 /9 / F e d E x S h ip M a n a g e r - P rin t Y o u r L a b e l(s ) to ROSEMARY CHIAVEHA, SECRETARY PA PUBLIC UTILITY COMMISSION 400 NORTH STREET TWO NORTH KEYSTONE HARRISBURG PA ) REF: NV: PO: DEPT: TRK# [mt K7 MDT A MON-12MAR3:OOP STANDARD OVERNIGHT PA-US jitin tru n iir I 552J1j07F5/DC^ MDT o c Q. 2* O to o (0 c oo. 2 3 E c o E 8 o -- 'q> «o = o ;i'2c2s.-s > 2 o a K c o> - 8» o 'E2iio>2c 3 4> E.S ffl /n 3 ~ g jq >ii9 «CO ^ O P 'n > i 5 ~ _i w tj 8-8 es's.ij 0 c >0 g.- "2 O e- s o o i 2 rn u >> a> JS u i: «i x» 3 1 IlllHi - u- - w 5 c c c jbi_cw 0335 n 0>» CO S TH '«g'.i 0) E ^==»S1 n O * ri ^ C^ 3 Oc 3tO' -CD c.jr S to p k_ 3 o)-*o c -S H.2 5 o x <" -c o ^ O w.2 C=» fe c 2 o-d o W c ^ x: E x -*2 -ss 2e -c 3 C.ecus ill o S a to c o avc$s««c 8,i 05*o^> 8-o m O -C 2 2 o- b8 «s^' 48 a)^ «««.EotoOTjxWraC s g ^ f -g «l2s.!^8)85 fiscs^oepso 2 ES"t- ii ca30 Pfe -n SOq>>.c5^u_ = co «0«Omw 5>1 a 8 ««S S «-S5 o 2.2 I s> «*5 i ~ 8 g n&q-o S s p O Ete g-o c3 o cns's^ ffl. 0 ^2>^ S «g «=«5-S28-o-Si -3-Qi/5w3='*ii-nS= m/shipping/shipmentconfirmationaction.handle?method=docontinue