11-0436
Appendix E
Page 1 of 9
Approved
Company
Gross
Proposed
Adjustment
Operating
$
%
Pro Forma
Pro Forma
Proposed
Revenue
Rates With
To
Statement
Revenue
Revenue
Line
Present
Adjustments
Present
Increase
Conversion
Adjustments
Proposed
per Order
Change
Change
No.
Description
(Sch C-1, C-2.1,C-4)
(App. E, p. 3)
(Cols. b+c)
(Sch. C-1, C-2.1)
Factor
(Cols. d+e+f)
Increase
(Cols. g+h)
(Cols. i-b)
(Cols. j/b)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
1
Operating Revenues
2,704,381$
-$
2,704,381$
541,017$
-$
3,245,398$
(173,032)$
3,072,366$
367,985$
13.61%
2
Other Revenues
11,283
-
11,283
-
-
11,283
-
11,283
-
3
Total Operating Revenue
2,715,664
-
2,715,664
541,017
-$
3,256,681
(173,032)
3,083,649
367,985$
13.55%
4
Uncollectible Accounts
36,438
-
36,438
7,259
-
43,697
(2,322)
41,375
5
Wages and Salaries
186,378
(13,421)
172,957
-
-
172,957
-
172,957
6
Employee Benefits
106,438
-
106,438
-
-
106,438
-
106,438
7
Contractual Services
341,876
(2,175)
339,701
-
-
339,701
-
339,701
8
Operations and Maintenance
321,448
-
321,448
-
-
321,448
-
321,448
9
Materials and Supplies
14,585
-
14,585
-
-
14,585
-
14,585
10
Insurance Expense
35,491
-
35,491
-
-
35,491
-
35,491
11
Regulatory Expense Amortization
14,452
(778)
13,674
-
-
13,674
-
13,674
12
Miscellaneous Expense
(120,813)
(880)
(121,693)
-
-
(121,693)
-
(121,693)
13
Depreciation and Amortization
715,078
-
715,078
-
-
715,078
-
715,078
14
Taxes Other Than Income
126,476
-
126,476
-
-
126,476
-
126,476
15
Total Operating Expense
16
Before Income Taxes
1,777,847
(17,254)
1,760,593
7,259
-
1,767,852
(2,322)
1,765,530
-
-
17
State Income Tax
55,879
1,847
57,726
50,707
-
108,433
(16,217)
92,216
18
Federal Income Tax
186,313
6,156
192,469
169,068
-
361,537
(54,072)
307,465
19
Deferred Taxes and ITCs Net
(1,872)
-
(1,872)
-
-
(1,872)
-
(1,872)
20
Total Operating Expenses
2,018,167
(9,251)
2,008,916
227,034
-
2,235,950
(72,611)
2,163,339
21
NET OPERATING INCOME
697,497$
9,251$
706,748$
313,983$
-$
1,020,731$
(100,421)$
920,310$
22
Rate Base (Appendix E, p. 4)
11,282,462$
23
Overall Rate of Return (per Order)
8.16%
Aqua Illinois, Inc. - University Park Sewer
Statement of Operating Income with Adjustments
For the Test Year Ending December 31, 201211-0436
Appendix E
Page 2 of 9
N/A
N/A
Interest
Incentive
Management
ADIT - Change
Misc.
Charitable
Industry
Subtotal
Synchronization
Compensation
Fees
in SIT Rate
Expense
Contributions
Assoc. Dues
Operating
Line
(Appendix E
(St. Ex. 6.0
(St. Ex. 6.0
(St. Ex. 6.0
(St. Ex. 7.0
(St. Ex. 7.0
(St. Ex. 7.0
Statement
(
Description
Page 6)
Sch 6.09)
Sch 6.10)
Sch 6.11)
Sch 7.01)
Sch. 7.02)
Sch. 7.03)
Adjustments
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
1
Operating Revenues
-$
-$
-$
-$
-$
-$
-$
-$
2
Other Revenues
-
-
-
-
-
-
-
-
3
Total Operating Revenue
-
-
-
-
-
-
-
-
4
Uncollectible Accounts
-
-
-
-
-
-
-
-
5
Wages and Salaries
-
(13,421)
-
-
-
-
-
(13,421)
6
Employee Benefits
-
-
-
-
-
-
-
-
7
Contractual Services
-
-
(2,175)
-
-
-
-
(2,175)
8
Operations and Maintenance
-
-
-
-
-
-
-
-
9
Materials and Supplies
-
-
-
-
-
-
-
10
Insurance Expense
-
-
-
-
-
-
-
-
11
Regulatory Expense Amortization
-
-
-
-
-
-
-
-
12
Miscellaneous Expense
-
-
-
-
(618)
-
(262)
(880)
13
Depreciation and Amortization
-
-
-
-
-
-
-
-
14
-
-
-
-
-
-
-
-
15
Total Operating Expense
16
Before Income Taxes
-
(13,421)
(2,175)
-
(618)
-
(262)
(16,476)
-
17
State Income Tax
207
1,275
207
-
59
-
25
1,773
18
Federal Income Tax
691
4,251
689
-
196
-
83
5,910
19
-
-
-
-
-
-
-
-
20
Total Operating Expenses
898
(7,895)
(1,279)
-
(363)
-
(154)
(8,793)
21
NET OPERATING INCOME
(898)$
7,895$
1,279$
-$
363$
-$
154$
8,793$
Aqua Illinois, Inc. - University Park Sewer
Adjustments to Operating Income
For the Test Year Ending December 31, 201211-0436
Appendix E
Page 3 of 9
N/A
Subtotal
Forecast Plant
Rate Case
Total
Operating
Additions
Expense
Operating
Line
Statement
(St. Ex. 7.0
(St. Ex. 6.0
Statement
No.
Description
Adjustments
Sch. 7.04)
Sch 6.13)
(Source)
(Source)
(Source)
(Source)
Adjustments
(a)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
(p)
1
Operating Revenues
-$
-$
-$
-$
-$
-$
-$
-$
2
Other Revenues
-
-
-
-
-
-
-
-
3
Total Operating Revenue
-
-
-
-
-
-
-
-
4
Uncollectible Accounts
-
-
-
-
-
-
-
-
5
Wages and Salaries
(13,421)
-
-
-
-
-
-
(13,421)
6
Employee Benefits
-
-
-
-
-
-
-
-
7
Contractual Services
(2,175)
-
-
-
-
-
-
(2,175)
8
Operations and Maintenance
-
-
-
-
-
-
-
-
9
Materials and Supplies
-
-
-
-
-
-
-
-
10
Insurance Expense
-
-
-
-
-
-
-
-
11
Regulatory Expense Amortization
-
-
(778)
-
-
-
-
(778)
12
Miscellaneous Expense
(880)
-
-
-
-
-
-
(880)
13
Depreciation and Amortization
-
-
-
-
-
-
-
-
14
-
-
-
-
-
-
-
-
15
Total Operating Expense
16
Before Income Taxes
(16,476)
-
(778)
-
-
-
-
(17,254)
17
State Income Tax
1,773
-
74
-
-
-
-
1,847
18
Federal Income Tax
5,910
-
246
-
-
-
-
6,156
19
Deferred Taxes and ITCs Net
-
-
-
-
-
-
-
-
20
Total Operating Expenses
(8,793)
-
(458)
-
-
-
-
(9,251)
21
NET OPERATING INCOME
8,793$
-$
458$
-$
-$
-$
-$
9,251$
Aqua Illinois, Inc. - University Park Sewer
Adjustments to Operating Income
For the Test Year Ending December 31, 201211-0436
Appendix E
Page 4 of 9
Company
Pro Forma
Pro Forma
Line
Rate Base
Adjustments
Rate Base
No.
Description
(Schedule B-1)
(App. E, p. 5)
(Col. b+c)
(a)
(b)
(c)
(d)
1
Gross Plant in Service
27,640,080$
-$
27,640,080$
2
Accumulated Depreciation
(7,796,711)
-
(7,796,711)
3
-
-
-
-
4
Net Plant
19,843,369
-
19,843,369
5
Additions to Rate Base
6
Deferred Charges
-
-
-
7
Materials & Supplies
-
-
-
8
Cash Working Capital
122,740
(2,060)
120,680
9
Amort. of Contributions In Aid of Const.
1,668,497
-
1,668,497
10
-
-
-
-
11
-
-
-
-
12
-
-
-
-
13
-
-
-
-
14
-
-
-
-
15
-
-
-
-
16
Deductions From Rate Base
17
FAS 87 Pension
(135,798)
-
(135,798)
18
FAS 106 OPEB
(20,706)
-
(20,706)
19
Customer Advances
(298,354)
-
(298,354)
20
Contributions In Aid of Construction
(8,060,012)
-
(8,060,012)
21
Deferred Income Taxes
(1,765,260)
(69,954)
(1,835,214)
22
-
-
-
-
23
Rate Base
11,354,476$
(72,014)$
11,282,462$
Aqua Illinois, Inc. - University Park Sewer
Rate Base
For the Test Year Ending December 31, 201211-0436
Appendix E
Page 5 of 9
N/A
N/A
Cash Working
ADIT-Change
ADIT-Bonus
Forecast Plant
Capital
in SIT Rate
Depreciation
Additions
Total
Line
(Appendix E
(St. Ex. 6.0
(St. Ex. 6.0
(St. Ex. 7.0
Rate Base
No.
Description
Page 9)
Sch 6.11)
Sch 6.12)
Sch 7.04)
(Source)
(Source)
(Source)
Adjustments
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
1
Gross Plant in Service
-$
-$
-$
-$
-$
-$
-$
-$
2
Accumulated Depreciation
-
-
-
-
-
-
-
-
3
-
-
-
-
-
-
-
-
-
4
Net Plant
-
-
-
-
-
-
-
-
-
5
Additions to Rate Base
-
6
Deferred Charges
-
-
-
-
-
-
-
-
7
Materials & Supplies
-
-
-
-
-
-
-
-
8
Cash Working Capital
(2,060)
-
-
-
-
-
-
(2,060)
9
Amort. of Contributions In Aid of Const.
-
-
-
-
-
-
-
-
10
-
-
-
-
-
-
-
-
-
11
-
-
-
-
-
-
-
-
-
12
-
-
-
-
-
-
-
-
-
13
-
-
-
-
-
-
-
-
-
14
-
-
-
-
-
-
-
-
-
15
-
-
-
-
-
-
-
-
-
16
Deductions From Rate Base
-
-
-
-
-
-
-
-
17
FAS 87 Pension
-
-
-
-
-
-
-
-
18
FAS 106 OPEB
-
-
-
-
-
-
-
-
19
Customer Advances
-
-
-
-
-
-
-
-
20
Contributions In Aid of Construction
-
-
-
-
-
-
-
-
21
Deferred Income Taxes
-
-
(69,954)
-
-
-
-
(69,954)
22
-
-
-
-
-
-
-
-
-
-
23
Rate Base
(2,060)$
-$
(69,954)$
-$
-$
-$
-$
(72,014)$
Adjustments to Rate Base
Aqua Illinois, Inc. - University Park Sewer
For the Test Year Ending December 31, 201211-0436
Appendix E
Page 6 of 9
Line
No.
Amount
(b)
1
Gross Plant in Service
11,282,462$
(1)
2
Weighted Cost of Debt
3.09%
(2)
3
Synchronized Interest Per Order
348,064
4
Company Interest Expense
350,247
(3)
5
Increase (Decrease) in Interest Expense
(2,183)
6
Increase (Decrease) in State Income Tax Expense
7
at
9.500%
207$
8
Increase (Decrease) in Federal Income Tax Expense
9
at
35.000%
691$
(1) Source: Appendix E, p. 4 Column (d), Line 23.
(2) Source: ICC Staff Exhibit 3.0, Schedule 3.01.
(3) Source: Company Schedule C-5.4.
Description
(a)
Aqua Illinois, Inc. - University Park Sewer
Interest Synchronization Adjustment
For the Test Year Ending December 31, 201211-0436
Appendix E
Page 7 of 9
Per Order
Per Order
Line
With
Without
No.
Description
Rate
Bad Debts
Bad Debts
(a)
(b)
(c)
(d)
1
Revenues
1.000000
2
Uncollectibles
1.3418%
0.013418
(1)
3
State Taxable Income
0.986582
1.000000
4
State Income Tax
9.5000%
0.093725
0.095000
5
Federal Taxable Income
0.892857
0.905000
6
Federal Income Tax
35.0000%
0.312500
0.316750
7
Operating Income
0.580357
0.588250
8
Gross Revenue Conversion Factor Per Order
1.723077
1.699958
Aqua Illinois, Inc. - University Park Sewer
For the Test Year Ending December 31, 2012
Gross Revenue Conversion Factor11-0436
Appendix E
Page 8 of 9
Line
Aqua's
No.
Proposal
Adjustments
Per Order
(b)
(c)
(d)
1
2
Current Revenues
2,715,664$
2,715,664$
3
Proposed Increase
541,017
(173,032)
#
367,985
4
Proposed Revenue Requirement
3,256,681$
(173,032)$
3,083,649$
5
Percentage Increase
19.92%
-6.37%
13.55%
6
7
Rate of Return
(146,971)$
8
Incentive Compensation
(13,604)$
9
ADIT - Bonus Depreciation
(8,263)$
10
Management Fees
(2,204)$
11
Rate Case Expense
(789)$
12
Miscellaneous Expense
(625)$
13
Industry Association Dues
(265)$
14
Cash Working Capital
(243)$
15
Interest Synchronization
(69)$
16
Forecast Plant Additions
-$
17
Depreciation on Disallowed Forecasted Plant
-$
18
ADIT - Change in State Income Tax Rate
-$
19
State Income Tax Regulatory Asset Amortization
-$
20
Charitable Contributions
-$
21
Gross Revenue Conversion Factor
-$
22
-$
23
-$
24
-$
25
-$
26
-$
27
-$
28
-$
29
-$
30
-$
31
-$
32
-$
33
-$
34
-$
35
-$
36
-$
37
-$
38
-$
39
-$
40
-$
41
-$
42
-$
43
Rounding
1$
44
Effect of Adjustments
(173,032)$
#
45
46
Column (c), line 3.
-
47
Column (f), line 3.
-
48
Column (h), line 3.
(173,032)
49
Total Effect of Adjustments
(173,032)$
#
Reconciliation to Appendix E, p. 1
Summary
Effect of Each Adjustment
Aqua Illinois, Inc. - University Park Sewer
Revenue Effect of Staff's Adjustments
For the Test Year Ending December 31, 2012
Description
(a)Docket No. 11-0436
Appendix E
Page 9 of 9
Line
No.
Description
Amount
(a)
(b)
(c)
1
Total Operating Expenses Before Income Taxes
1,765,530$
(1)
2
Less:
3
Uncollectible Accounts
41,375
(1)
4
Annual Amortization of Rate Case Expense
13,674
(1)
5
Depreciation and Amortization Expense
715,078
(1)
6
Real Estate Tax Expense
29,960
(2)
7
Total Cash Operating Expenses
965,443
8
Cash Working Capital per Order
120,680
(3)
9
Cash Working Capital Per Company
122,740
(2)
10
Adjustment
(2,060)$
(1) Source: Appendix E, p. 1 Column (i).
(2) Source: Company Schedule B-8.
(3) Source: 45/360 x Line 7
Aqua Illinois, Inc. - University Park Sewer
Adjustment for Cash Working Capital
For the Test Year Ending December 31, 2012
Electronic Documents of Illinois
