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Index to Rate Filing Package Filing Requirements

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Index to Rate Filing Package Filing Requirements BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION VOLUME I INDEX TO RATE FILING PACKAGE FILING REQUIREMENTS PITTSBURGH WATER AND SEWER AUTHORITY RATE FILiNG Docket Nos. R-2020-3017951 (water) R-2020-30 17970 (wastewater) March 6, 2020 THE PITTSBURGH WATER AND SEWER AUTHORITY Docket Nos. R-2020-3017951 (Water) and R-2020-3017970 (Wastewater) INDEX TO RATE FILING PACKAGE Prior Related Filings: _________________________________ ctition Waiver Of Provisions Of Act 11 To Increase The DSIC Cap,Docket No. P-2020- To Permit Levelization Of DSIC Charges, And To Authorize3019019 The Pay -As -You -Go Method Of Financing Fifings Simultaneous With This Filing Package: Petition Consolidation Of Water and Wastewater Rate Proceedings And For Authorization To Use Combined Water And Wastewater Revenue Requirements Petition Consolidation of DSIC Waiver Petition and Rate Proceedings included With This Filing Package: Volume IFiling [Tab 1 Statement of Reasons RequirementsTab 2 Customer Notice of Proposed Rate Changes Tab 3 Filing Requirements- 52 Pa Code § 53.52 Tab 4 Filing Requirements I- Statement of Income Tab 5 Filing Requirements II- Operating Revenues Tab 6 Filing Requirements III- Operating Expense Tab 7 Filing Requirements IV- Taxes Tab 8 Filing Requirements V- Rate Base Tab 9 Filing Requirements VI- Depreciation Tab 10 Filing Requirements VII- Rate of Return Tab 11 Filing Requirements VIII- Rate Structure & Cost of Service Tab 12 Filing Requirements IX- Quality of Service Tab 13 Filing Requirements X- Balance Sheet _________ Tab 14 Filing Requirements XI- Other Data Volume TestimonySt. No. I Robert A. Weimar_______________________________________ II St. No. 2Debbie M. LestitianExh. DML-1 St. No. 3 Jennifer Presutti Exhs. JP- 1 to JP -5 St. No. 4 Barry King Exhs. BK-i to BK-3 St. No. 5 Edward Barca Exhs. EB-1 to EB-3 St. No. 6 Thomas F. Huestis Exhs. TFH-1 to TFH-2 St. No. 7 Harold J. Smith Exhs. HJS-i to HJS-3 Exhs. HJS-iW to HJS-22W _______________Exhs. HJS-1WW to HJS-21WW St. No. 8 Julie A. Quigley Exh. JAQ-1 Water Tariff Supp. No. 1 (clean) Exh. JAQ-2 Water Tariff Supp. No. 1 (red -lined Exh. JAQ-3 Wastewater Tariff Spp. No. 1 (clean) Exh. JAQ-4Wastewater Tariff Supp. No. I (red -lined) _______________Exh. JAQ-5 to JAQ-6 _________ St. No. 9 Beth Dutton Exh. BD -1 to BD -4 {L0859648. 1) Pittsburgh Water and Sewer Authority 2020 Rate Filing Docket Nos. R-2020-3017951 (water) R-2020-30 17970 (wastewater) INDEX OF FILING REQUIREMENTS Tab No. Requirements I Statement of Reasons 2 Customer Notice of Proposed Rate Changes 3 Filing Requirements - 52 Pa Code § 53.52 4 Filing Requirements I - Statement of Income 5 Filing Requirements II - Operating Revenues 6 Filing Requirements III - Operating Expense 7 Filing Requirements IV- Taxes 8 Filing Requirements V - Rate Base 9 Filing Requirements VI - Depreciation 10 Filing Requirements VII- Rate of Return 11 Filing Requirements VIII - Rate Structure and Cost of Service 12 Filing Requirements IX - Quality of Service 13 Filing Requirements X - Balance Sheet 14 Filing Requirements XI - Other Data 1 THE PITTSBURGH WATER AND SEWER AUTHORITY Tariff Filings and Rate Requests Docket Nos. R-2019-3017951 (water) and R-2019-3017970 (wastewater) STATEMENT OF REASONS The Pittsburgh Water and Sewer Authority ("PWSA") has asked the Pennsylvania Public Utility Commission ("Commission") for approval of a multiyear rate plan to increase its rates for 2021 by $43.4 million and $12.6 million for 2022. The rate increase request includes a Distribution System Improvement Charge ("DSIC") assessed at 10% of the base rates. Although the new rates are proposed to become effective on May 5, 2020, PWSA expects that the proposed rates will be suspended for investigation by the Commission until approximately December 7, 2020. The proposed increase in revenues is the minimum necessary to enable PWSA to appropriately invest in the infrastructure needed to maintain and improve its safety, reliability and customer service levels. The main reasons PWSA is asking for an increase in rates are: While PWSA is taking every reasonable step to operate efficiently and keep costs down, its extensive Capital Improvement Program ("CIP") simply cannot be accomplished without additional rate relief. Working through the projects of the CIP is important because it includes refurbishment and replacement of a significant portion of PWSA's water supply system to include projects that have been mandated by state agencies (including the Pennsylvania Department of Environmental Protection, "DEP") and continuing to replace all lead service lines as well as ones necessary to ensure PWSA is able to meet the expectations of the Commission as part of its Compliance Plan proceeding at Docket Nos. M-201 8-2640802 and M-201 8-2640803. PWSA' s direct operating expenses are also increasing as a result of the need to add necessary personnel, pay increased salaries and associated benefits, enter into large operating contracts (including contracts dealing with emergency issues, information technology and non -capital facility upgrades). PWSA is also experiencing increases in the cost of debt service driven by PWSA's on -going efforts to upgrade systems to meet the regulatory obligations. In addition to available state and/or federal loans and "PAYGO"/DSIC financing produced from rates, PWSA must be able to raise capital on reasonable terms to fund its CIP projects. To ensure continued access to the bond market, PWSA needs to increase its rates to cover the additional debt service and debt service coverage required for additional bond issuances. Approval of PWSA's proposed rate increase will enable it to implement a more balanced financing strategy whereby it will be able to utilize all available funding sources to their full advantage rather than being overly reliant on any one source (such as debt). PWSA' s request to approve a multiyear rate plan is intended to provide transparency for customers while reducing the time and expense of seeking approval for a rate increase in year 2022 that can be determined now while permitting PWSA to maintain adequate financial metrics and have the money needed to continue to upgrade its infrastructure and make other necessary improvements. {L08592 16.1 2 NO liCE OF PROPOSED RATE CHANGES To Our Customers: The Pittsburgh Water and Sewer Authority (PWSA) has filed a request with the Pennsylvania Public Utility Commission (PUC) on March 6, 2020, to increase your water and wastewater conveyance rates. This notice describes the Authority's rate request, the PUC's role, and what actions you can take. If the Authority's entire request and the multi -year rate plan is approved as filed, the total bill for water and wastewater conveyance service for a typical Residential customer using 3,000 gallons per month would increase from $72.49 to $86.31 per month or by 19.1% in 2021. RATE REQUEST PWSA has requested an overall rate increase of 25.4%, or $43.8 million, beginning in 2021, and 6.4%, or $12.6 million, beginning in 2022 for its water and wastewater conveyance operations. This filing includes a request for approval of a multi -year rate plan in accordance with 66 Pa. C.S. § 1330 (relating to alternative ratemaking for utilities), which would allow for a rate increase to go into effect in 2021 and a second rate increase to go into effect in 2022. This filing also requests approval of a Distribution System Improvement Charge (DSIC), which will enable PWSA to make additional upgrades to aging infrastructure. The DSIC is calculated into the rates below. For a typical Residential customer using 3,000 gallons per month with a 5/8 -inch meter, the total bill would increase from $72.49 to $86.31 per month or by 19.1% in 2021, as shown in the table below: Residential Current Rates 2021 Rates 2022 Rates Water 49.35 58.15 61.11 Wastewater 23.14 28.16 1 30.60 Total 72.49 86.31J_91.71 For a typical Commercial customer using 13,000 gallons per month with a 1 -inch meter, the total bill would increase from $265.96 to $344.73 per month or by 29.6% in 2021, as shown in the table below: Commercial Current Rates 2021 Rates 2022 Rates Water 173.66 229.99 241.68 Wastewater 92.30 114.74 124.71 Total 265.96 344.73 366.39 For an Industrial customer using 680,000 gallons per month with a 4 -inch meter, the total bill would increase from $10,649.49 to $15,548.09 per month or by 46% in 2021, as shown in the table below: Industrial Current Rates 2021 Rates 2022 Rates Water 6,458.38 9,598.30 10,089.63 J Wastewater 4,191.11 5,949.79 6,464.57 Total 10,649.49 15,548.09 16,554.20 For a Health and Education customer using 50,000 gallons per month with a 2 -inch meter, the total bill would increase from $1,171.86 to $1,342.29 per month or by 14.5% in 2021, as shown in the table below: Health/Education Current Rates 2021 Rates 2022 Rates Water 761.70 895.26 940.78 Wastewater 410.16 447.03 485.97 Total 1,171.86 1,342.29 1,426.74 PWSA's rate request is scheduled to go into effect on May 5, 2020; however, in most cases, the PUC suspends the increase for up to an additional seven (7) months. In the past two years, PWSA has invested approximately $176 million in capital improvements, including necessary upgrades to water and wastewater treatment facilities, storage tanks, wells and pumping stations to ensure that its systems meet all regulatory standards.
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