11-0436
Appendix C
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. C, 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
70,412$
-$
70,412$
57,087$
-$
127,499$
(4,383)$
123,116$
52,704$
74.85%
2
Other Revenues
-
-
-
-
-
-
-
-
-
3
Total Operating Revenue
70,412
-
70,412
57,087
-$
127,499
(4,383)
123,116
52,704$
74.85%
4
Uncollectible Accounts
299
-
299
243
-
542
(19)
523
5
Wages and Salaries
37,797
(2,112)
35,685
-
-
35,685
-
35,685
6
Employee Benefits
15,456
-
15,456
-
-
15,456
-
15,456
7
Contractual Services
19,872
(315)
19,557
-
-
19,557
-
19,557
8
Operations and Maintenance
9,204
-
9,204
-
-
9,204
-
9,204
9
Materials and Supplies
247
-
247
-
-
247
-
247
10
Insurance Expense
983
-
983
-
-
983
-
983
11
Regulatory Expense Amortization
1,485
(80)
1,405
-
-
1,405
-
1,405
12
Miscellaneous Expense
3,411
(37)
3,374
-
-
3,374
-
3,374
13
Depreciation and Amortization
14,894
-
14,894
-
-
14,894
-
14,894
14
Taxes Other Than Income
6,188
-
6,188
-
-
6,188
-
6,188
15
Total Operating Expense
16
Before Income Taxes
109,836
(2,544)
107,292
243
-
107,535
(19)
107,516
-
-
17
State Income Tax
(4,131)
246
(3,885)
5,400
-
1,515
(415)
1,100
18
Federal Income Tax
(13,774)
816
(12,958)
18,005
1
5,048
(1,382)
3,666
19
Deferred Taxes and ITCs Net
-
-
-
-
-
-
-
-
20
Total Operating Expenses
91,931
(1,482)
90,449
23,648
1
114,098
(1,816)
112,282
21
NET OPERATING INCOME
(21,519)$
1,482$
(20,037)$
33,439$
(1)$
13,401$
(2,567)$
10,834$
22
Rate Base (Appendix C, p. 4)
132,815$
23
Overall Rate of Return (per Order)
8.16%
Aqua Illinois, Inc. - Ellwood Greens Sewer
Statement of Operating Income with Adjustments
For the Test Year Ending December 31, 201211-0436
Appendix C
Page 2 of 9
N/A
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 C
(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
-
(2,112)
-
-
-
-
-
(2,112)
6
Employee Benefits
-
-
-
-
-
-
-
-
7
Contractual Services
-
-
(315)
-
-
-
-
(315)
8
Operations and Maintenance
-
-
-
-
-
-
-
-
9
Materials and Supplies
-
-
-
-
-
-
-
10
Insurance Expense
-
-
-
-
-
-
-
-
11
Regulatory Expense Amortization
-
-
-
-
-
-
-
-
12
Miscellaneous Expense
-
-
-
-
-
-
(37)
(37)
13
Depreciation and Amortization
-
-
-
-
-
-
-
-
14
-
-
-
-
-
-
-
-
15
Total Operating Expense
16
Before Income Taxes
-
(2,112)
(315)
-
-
-
(37)
(2,464)
-
17
State Income Tax
3
201
30
-
-
-
4
238
18
Federal Income Tax
10
669
100
-
-
-
12
791
19
-
-
-
-
-
-
-
-
20
Total Operating Expenses
13
(1,242)
(185)
-
-
-
(21)
(1,435)
21
NET OPERATING INCOME
(13)$
1,242$
185$
-$
-$
-$
21$
1,435$
Aqua Illinois, Inc. - Ellwood Greens Sewer
Adjustments to Operating Income
For the Test Year Ending December 31, 201211-0436
Appendix C
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
(2,112)
-
-
-
-
-
-
(2,112)
6
Employee Benefits
-
-
-
-
-
-
-
-
7
Contractual Services
(315)
-
-
-
-
-
-
(315)
8
Operations and Maintenance
-
-
-
-
-
-
-
-
9
Materials and Supplies
-
-
-
-
-
-
-
-
10
Insurance Expense
-
-
-
-
-
-
-
-
11
Regulatory Expense Amortization
-
-
(80)
-
-
-
-
(80)
12
Miscellaneous Expense
(37)
-
-
-
-
-
-
(37)
13
Depreciation and Amortization
-
-
-
-
-
-
-
-
14
-
-
-
-
-
-
-
-
15
Total Operating Expense
16
Before Income Taxes
(2,464)
-
(80)
-
-
-
-
(2,544)
17
State Income Tax
238
-
8
-
-
-
-
246
18
Federal Income Tax
791
-
25
-
-
-
-
816
19
Deferred Taxes and ITCs Net
-
-
-
-
-
-
-
-
20
Total Operating Expenses
(1,435)
-
(47)
-
-
-
-
(1,482)
21
NET OPERATING INCOME
1,435$
-$
47$
-$
-$
-$
-$
1,482$
Aqua Illinois, Inc. - Ellwood Greens Sewer
Adjustments to Operating Income
For the Test Year Ending December 31, 201211-0436
Appendix C
Page 4 of 9
Company
Pro Forma
Pro Forma
Line
Rate Base
Adjustments
Rate Base
No.
Description
(Schedule B-1)
(App. C, p. 5)
(Col. b+c)
(a)
(b)
(c)
(d)
1
Gross Plant in Service
558,262$
-$
558,262$
2
Accumulated Depreciation
(433,854)
-
(433,854)
3
-
-
-
-
4
Net Plant
124,408
-
124,408
5
Additions to Rate Base
6
Deferred Charges
60
-
60
7
Materials & Supplies
-
-
-
8
Cash Working Capital
11,412
(308)
11,104
9
Amort. of Contributions In Aid of Const.
361,693
-
361,693
10
-
-
-
-
11
-
-
-
-
12
-
-
-
-
13
-
-
-
-
14
-
-
-
-
15
-
-
-
-
16
Deductions From Rate Base
17
FAS 87 Pension
(19,546)
-
(19,546)
18
FAS 106 OPEB
(2,986)
-
(2,986)
19
Customer Advances
-
-
-
20
Contributions In Aid of Construction
(332,591)
-
(332,591)
21
Deferred Income Taxes
(8,635)
(692)
(9,327)
22
-
-
-
-
23
Rate Base
133,815$
(1,000)$
132,815$
Aqua Illinois, Inc. - Ellwood Greens Sewer
Rate Base
For the Test Year Ending December 31, 201211-0436
Appendix C
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 C
(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
(308)
-
-
-
-
-
-
(308)
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
-
-
(692)
-
-
-
-
(692)
22
-
-
-
-
-
-
-
-
-
-
23
Rate Base
(308)$
-$
(692)$
-$
-$
-$
-$
(1,000)$
Adjustments to Rate Base
Aqua Illinois, Inc. - Ellwood Greens Sewer
For the Test Year Ending December 31, 201211-0436
Appendix C
Page 6 of 9
Line
No.
Amount
(b)
1
Gross Plant in Service
132,815$
(1)
2
Weighted Cost of Debt
3.09%
(2)
3
Synchronized Interest Per Order
4,097
4
Company Interest Expense
4,128
(3)
5
Increase (Decrease) in Interest Expense
(31)
6
Increase (Decrease) in State Income Tax Expense
7
at
9.500%
3$
8
Increase (Decrease) in Federal Income Tax Expense
9
at
35.000%
10$
(1) Source: Appendix C, 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. - Ellwood Greens Sewer
Interest Synchronization Adjustment
For the Test Year Ending December 31, 201211-0436
Appendix C
Page 7 of 9
Per Staff
Per Staff
Line
With
Without
No.
Description
Rate
Bad Debts
Bad Debts
(a)
(b)
(c)
(d)
1
Revenues
1.000000
2
Uncollectibles
0.4250%
0.004250
3
State Taxable Income
0.995750
1.000000
4
State Income Tax
9.5000%
0.094596
0.095000
5
Federal Taxable Income
0.901154
0.905000
6
Federal Income Tax
35.0000%
0.315404
0.316750
7
Operating Income
0.585750
0.588250
8
Gross Revenue Conversion Factor Per Order
1.707213
1.699958
Aqua Illinois, Inc. - Ellwood Greens Sewer
For the Test Year Ending December 31, 2012
Gross Revenue Conversion Factor11-0436
Appendix C
Page 8 of 9
Line
Aqua's
No.
Proposal
Adjustments
Per Order
(b)
(c)
(d)
1
2
Current Revenues
70,412$
70,412$
3
Proposed Increase
57,087
(4,383)
#
52,704
4
Proposed Revenue Requirement
127,499$
(4,383)$
123,116$
5
Percentage Increase
81.08%
-6.22%
74.85%
6
7
Incentive Compensation
(2,120)$
8
Rate of Return
(1,715)$
9
Management Fees
(316)$
10
ADIT - Bonus Depreciation
(81)$
11
Rate Case Expense
(80)$
12
Industry Association Dues
(36)$
13
Cash Working Capital
(36)$
14
Forecast Plant Additions
-$
15
Depreciation on Disallowed Forecasted Plant
-$
16
Interest Synchronization
-$
17
ADIT - Change in State Income Tax Rate
-$
18
State Income Tax Regulatory Asset Amortization
-$
19
Miscellaneous Expense
-$
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
(4,383)$
#
45
46
Column (c), line 3.
-
47
Column (f), line 3.
-
48
Column (h), line 3.
(4,383)
49
Total Effect of Adjustments
(4,383)$
#
Reconciliation to Appendix C, p. 1
Summary
Effect of Each Adjustment
Aqua Illinois, Inc. - Ellwood Greens Sewer
Revenue Effect of Staff's Adjustments
For the Test Year Ending December 31, 2012
Description
(a)Docket No. 11-0436
Appendix C
Page 9 of 9
Line
No.
Description
Amount
(a)
(b)
(c)
1
Total Operating Expenses Before Income Taxes
107,516$
(1)
2
Less:
3
Uncollectible Accounts
523
(1)
4
Annual Amortization of Rate Case Expense
1,405
(1)
5
Depreciation and Amortization Expense
14,894
(1)
6
Real Estate Tax Expense
1,866
(2)
7
Total Cash Operating Expenses
88,828
8
Cash Working Capital per Order
11,104
(3)
9
Cash Working Capital Per Company
11,412
(2)
10
Adjustment
(308)$
(1) Source: Appendix C, p. 1 Column (i).
(2) Source: Company Schedule B-8.
(3) Source: 45/360 x Line 7
Aqua Illinois, Inc. - Ellwood Greens Sewer
Adjustment for Cash Working Capital
For the Test Year Ending December 31, 2012
