11-0436
Appendix B
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. B, 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
3,058,865$
-$
3,058,865$
671,058$
(378)$
3,729,545$
(166,858)$
3,562,687$
503,822$
16.47%
2
Other Revenues
37,217
-
37,217
-
-
37,217
-
37,217
-
3
Total Operating Revenue
3,096,082
-
3,096,082
671,058
(378)$
3,766,762
(166,858)
3,599,904
503,822$
16.27%
4
Uncollectible Accounts
54,522
-
54,522
12,188
(377)
66,333
(2,938)
63,395
5
Wages and Salaries
307,038
(18,481)
288,557
-
-
288,557
-
288,557
6
Employee Benefits
119,908
-
119,908
-
-
119,908
-
119,908
7
Contractual Services
287,130
(3,676)
283,454
-
-
283,454
-
283,454
8
Operations and Maintenance
391,304
-
391,304
-
-
391,304
-
391,304
9
Materials and Supplies
17,180
-
17,180
-
-
17,180
-
17,180
10
Insurance Expense
46,148
-
46,148
-
-
46,148
-
46,148
11
Regulatory Expense Amortization
23,285
(1,254)
22,031
-
-
22,031
-
22,031
12
Miscellaneous Expense
83,740
(429)
83,311
-
-
83,311
-
83,311
13
Depreciation and Amortization
777,179
4,745
781,924
-
-
781,924
-
781,924
14
Taxes Other Than Income
267,999
-
267,999
-
-
267,999
-
267,999
15
Total Operating Expense
16
Before Income Taxes
2,375,433
(19,095)
2,356,338
12,188
(377)
2,368,149
(2,938)
2,365,211
-
-
17
State Income Tax
37,297
2,026
39,323
62,593
-
101,916
(15,572)
86,344
18
Federal Income Tax
124,355
6,756
131,111
208,697
-
339,808
(51,922)
287,886
19
Deferred Taxes and ITCs Net
(3,756)
-
(3,756)
-
-
(3,756)
-
(3,756)
20
Total Operating Expenses
2,533,329
(10,313)
2,523,016
283,478
(377)
2,806,117
(70,432)
2,735,685
21
NET OPERATING INCOME
562,753$
10,313$
573,066$
387,580$
(1)$
960,645$
(96,426)$
864,219$
22
Rate Base (Appendix B, p. 4)
10,594,543$
23
Overall Rate of Return (per Order)
8.16%
Aqua Illinois, Inc. - Consolidated Sewer
Statement of Operating Income with Adjustments
For the Test Year Ending December 31, 201211-0436
Appendix B
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 B
(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
-
(18,481)
-
-
-
-
-
(18,481)
6
Employee Benefits
-
-
-
-
-
-
-
-
7
Contractual Services
-
-
(3,676)
-
-
-
-
(3,676)
8
Operations and Maintenance
-
-
-
-
-
-
-
-
9
Materials and Supplies
-
-
-
-
-
-
-
10
Insurance Expense
-
-
-
-
-
-
-
-
11
Regulatory Expense Amortization
-
-
-
-
-
-
-
-
12
Miscellaneous Expense
-
-
-
-
-
-
(429)
(429)
13
Depreciation and Amortization
-
-
-
4,745
-
-
-
4,745
14
-
-
-
-
-
-
-
-
15
Total Operating Expense
16
Before Income Taxes
-
(18,481)
(3,676)
4,745
-
-
(429)
(17,841)
-
17
State Income Tax
212
1,756
349
(451)
-
-
41
1,907
18
Federal Income Tax
708
5,854
1,164
(1,503)
-
-
136
6,359
19
-
-
-
-
-
-
-
-
20
Total Operating Expenses
920
(10,871)
(2,163)
2,791
-
-
(252)
(9,575)
21
NET OPERATING INCOME
(920)$
10,871$
2,163$
(2,791)$
-$
-$
252$
9,575$
Aqua Illinois, Inc. - Consolidated Sewer
Adjustments to Operating Income
For the Test Year Ending December 31, 201211-0436
Appendix B
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
(18,481)
-
-
-
-
-
-
(18,481)
6
Employee Benefits
-
-
-
-
-
-
-
-
7
Contractual Services
(3,676)
-
-
-
-
-
-
(3,676)
8
Operations and Maintenance
-
-
-
-
-
-
-
-
9
Materials and Supplies
-
-
-
-
-
-
-
-
10
Insurance Expense
-
-
-
-
-
-
-
-
11
Regulatory Expense Amortization
-
-
(1,254)
-
-
-
-
(1,254)
12
Miscellaneous Expense
(429)
-
-
-
-
-
-
(429)
13
Depreciation and Amortization
4,745
-
-
-
-
-
-
4,745
14
-
-
-
-
-
-
-
-
15
Total Operating Expense
16
Before Income Taxes
(17,841)
-
(1,254)
-
-
-
-
(19,095)
17
State Income Tax
1,907
-
119
-
-
-
-
2,026
18
Federal Income Tax
6,359
-
397
-
-
-
-
6,756
19
Deferred Taxes and ITCs Net
-
-
-
-
-
-
-
-
20
Total Operating Expenses
(9,575)
-
(738)
-
-
-
-
(10,313)
21
NET OPERATING INCOME
9,575$
-$
738$
-$
-$
-$
-$
10,313$
Aqua Illinois, Inc. - Consolidated Sewer
Adjustments to Operating Income
For the Test Year Ending December 31, 201211-0436
Appendix B
Page 4 of 9
Company
Pro Forma
Pro Forma
Line
Rate Base
Adjustments
Rate Base
No.
Description
(Schedule B-1)
(App. B, p. 5)
(Col. b+c)
(a)
(b)
(c)
(d)
1
Gross Plant in Service
30,030,313$
-$
30,030,313$
2
Accumulated Depreciation
(9,394,223)
-
(9,394,223)
3
-
-
-
-
4
Net Plant
20,636,090
-
20,636,090
5
Additions to Rate Base
6
Deferred Charges
360
-
360
7
Materials & Supplies
-
-
-
8
Cash Working Capital
172,199
(2,823)
169,376
9
Amort. of Contributions In Aid of Const.
2,039,704
-
2,039,704
10
Regulatory Asset - Deferred SIT
-
37,705
37,705
11
-
-
-
-
12
-
-
-
-
13
-
-
-
-
14
-
-
-
-
15
-
-
-
-
16
Deductions From Rate Base
17
FAS 87 Pension
(134,815)
-
(134,815)
18
FAS 106 OPEB
(20,558)
-
(20,558)
19
Customer Advances
(48,728)
-
(48,728)
20
Contributions In Aid of Construction
(10,145,024)
-
(10,145,024)
21
Deferred Income Taxes
(1,831,118)
(108,449)
(1,939,567)
22
-
-
-
-
23
Rate Base
10,668,110$
(73,567)$
10,594,543$
Aqua Illinois, Inc. - Consolidated Sewer
Rate Base
For the Test Year Ending December 31, 201211-0436
Appendix B
Page 5 of 9
N/A
Cash Working
ADIT-Change
ADIT-Bonus
Forecast Plant
Capital
in SIT Rate
Depreciation
Additions
Total
Line
(Appendix B
(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
(2,823)
-
-
-
-
-
-
(2,823)
9
Amort. of Contributions In Aid of Const.
-
-
-
-
-
-
-
-
10
Regulatory Asset - Deferred SIT
-
37,705
-
-
-
-
-
37,705
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
-
(37,705)
(70,744)
-
-
-
-
(108,449)
22
-
-
-
-
-
-
-
-
-
-
23
Rate Base
(2,823)$
-$
(70,744)$
-$
-$
-$
-$
(73,567)$
Adjustments to Rate Base
Aqua Illinois, Inc. - Consolidated Sewer
For the Test Year Ending December 31, 201211-0436
Appendix B
Page 6 of 9
Line
No.
Amount
(b)
1
Gross Plant in Service
10,594,543$
(1)
2
Weighted Cost of Debt
3.08%
(2)
3
Synchronized Interest Per Order
326,838
4
Company Interest Expense
329,074
(3)
5
Increase (Decrease) in Interest Expense
(2,236)
6
Increase (Decrease) in State Income Tax Expense
7
at
9.500%
212$
8
Increase (Decrease) in Federal Income Tax Expense
9
at
35.000%
708$
(1) Source: Appendix B, p. 4 Column (d), Line 23.
(2) Source: ICC Staff Exhibit 3.0, Schedule 3.01.
(3) Source: Company Schedule C-5.4. (Excludes Ellwood Greens and University Park)
Description
(a)
Aqua Illinois, Inc. - Consolidated Sewer
Interest Synchronization Adjustment
For the Test Year Ending December 31, 201211-0436
Appendix B
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
1.7610%
0.017610
(1)
3
State Taxable Income
0.982390
1.000000
4
State Income Tax
9.5000%
0.093327
0.095000
5
Federal Taxable Income
0.889063
0.905000
6
Federal Income Tax
35.0000%
0.311172
0.316750
7
Operating Income
0.577891
0.588250
8
Gross Revenue Conversion Factor Per Order
1.730430
1.699958
(1) Source: ICC Staff Exhibit 6.0, Schedule 6.01 CS Column (b), Line 4 / Line 3.
Aqua Illinois, Inc. - Consolidated Sewer
For the Test Year Ending December 31, 2012
Gross Revenue Conversion Factor11-0436
Appendix B
Page 8 of 9
Line
Aqua's
No.
Proposal
Adjustments
Per Order
(b)
(c)
(d)
1
2
Current Revenues
3,096,082$
3,096,082$
3
Proposed Increase
671,058
(167,236)
#
503,822
4
Proposed Revenue Requirement
3,767,140$
(167,236)$
3,599,904$
5
Percentage Increase
21.67%
-5.40%
16.27%
6
7
Rate of Return
(138,630)$
8
Incentive Compensation
(18,812)$
9
ADIT - Bonus Depreciation
(8,431)$
10
Management Fees
(3,743)$
11
Rate Case Expense
(1,277)$
12
Industry Association Dues
(436)$
13
Gross Revenue Conversion Factor
(378)$
14
Cash Working Capital
(336)$
15
Interest Synchronization
(25)$
16
Forecast Plant Additions
-$
17
Depreciation on Disallowed Forecasted Plant
-$
18
ADIT - Change in State Income Tax Rate
-$
19
Miscellaneous Expense
-$
20
Charitable Contributions
-$
21
State Income Tax Regulatory Asset Amortization
4,830$
22
-$
23
-$
24
-$
25
-$
26
-$
27
-$
28
-$
29
-$
30
-$
31
-$
32
-$
33
-$
34
-$
35
-$
36
-$
37
-$
38
-$
39
-$
40
-$
41
-$
42
-$
43
Rounding
2$
44
Effect of Adjustments
(167,236)$
#
45
46
Column (c), line 3.
-
47
Column (f), line 3.
(378)
48
Column (h), line 3.
(166,858)
49
Total Effect of Adjustments
(167,236)$
#
Reconciliation to Appendix B, p. 1
Summary
Effect of Each Adjustment
Aqua Illinois, Inc. - Consolidated Sewer
Revenue Effect of Staff's Adjustments
For the Test Year Ending December 31, 2012
Description
(a)Docket No. 11-0436
Appendix B
Page 9 of 9
Line
No.
Description
Amount
(a)
(b)
(c)
1
Total Operating Expenses Before Income Taxes
2,365,211$
(1)
2
Less:
3
Uncollectible Accounts
63,395
(1)
4
Annual Amortization of Rate Case Expense
22,031
(1)
5
Depreciation and Amortization Expense
781,924
(1)
6
Real Estate Tax Expense
142,852
(2)
7
Total Cash Operating Expenses
1,355,009
8
Cash Working Capital per Order
169,376
(3)
9
Cash Working Capital Per Company
172,199
(2)
10
Adjustment
(2,823)$
(1) Source: Appendix B, p. 1 Column (i).
(2) Source: Company Schedule B-8. (Excludes Ellwood Greens and University Park)
(3) Source: 45/360 x Line 7
Aqua Illinois, Inc. - Consolidated Sewer
Adjustment for Cash Working Capital
For the Test Year Ending December 31, 2012
Electronic Documents of Illinois
