DOCSLIB.ORG

Aqua Pennsylvania, Inc. Index to Direct Testimony Ap

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Aqua Pennsylvania, Inc. Index to Direct Testimony Ap AQUA PENNSYLVANIA, INC. INDEX TO DIRECT TESTIMONY AP Statement No. 1 William C. Packer AP Statement No. 2 Renee T. Marquis AP Statement No. 3 Erin M. Feeney AP Statement No. 4 Paul R. Moul AP Statement No. 5 Paul R. Herbert AP Statement No. 6 John J. Spanos AP Statement No. 7 William J. Jerdon AP Statement No. 8 Mark J. Bubel AP STATEMENT NO. 1 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION AQUA PENNSYLVANIA, INC. DOCKET NO. R-2018-3003068 DIRECT TESTIMONY OF WILLIAM C. PACKER With Regard To The Company’s Need for Rate Relief, Overview of the Principal Accounting Exhibits Certain Expense Claims, Rate Base Claims, Rate Design, Proposed Capitalization Ratios, Return on Equity Considerations, And Various Other Matters August 17, 2018 TABLE OF CONTENTS I. INTRODUCTION AND PURPOSE OF TESTIMONY .................................................... 1 II. AQUA PA’S NEED FOR RATE RELIEF ......................................................................... 3 III. AQUA PA’S EFFORTS TO CONTROL OPERATING AND MAINTENANCE (“O&M”) EXPENSES ........................................................................................................ 9 IV. PRINCIPAL ACCOUNTING EXHIBIT ......................................................................... 10 V. OPERATING EXPENSES ............................................................................................... 13 VI. DEPRECIATION, TAXES AND OTHER ITEMS.......................................................... 23 VII. RATE BASE ..................................................................................................................... 26 VIII. RATE DESIGN ................................................................................................................ 27 IX. SUPERIOR WATER COMPANY, INC. MERGER ....................................................... 28 X. PURCHASED WATER ADJUSTMENT CLAUSE ........................................................ 30 XI. ENERGY COST ADJUSTMENT MECHANISM .......................................................... 32 XII. CAPITAL STRUCTURE RATIOS .................................................................................. 33 XIII. RETURN ON EQUITY CONSIDERATIONS ................................................................ 34 XIV. SATISFACTION OF COMMITMENTS FROM THE COMPANY’S 2011 RATE CASE SETTLEMENT ................................................................................................................. 45 XV. CONCLUSION ................................................................................................................. 45 1 I. INTRODUCTION AND PURPOSE OF TESTIMONY 2 Q. What is your name and business address? 3 A. William C. Packer. My business address is 762 W. Lancaster Avenue, Bryn Mawr, 4 Pennsylvania 19010. 5 Q. By whom are you employed and in what capacity? 6 A. I am employed by Aqua Pennsylvania, Inc. (“Aqua PA” or the “Company”) as Vice 7 President – Controller. In addition, I oversee certain financial operations for Aqua PA, 8 and Aqua New Jersey, Inc. (“Aqua NJ”). 9 Q. Please describe your education and business experience. 10 A. I graduated from the Richard Stockton College of New Jersey in 1998 with a Bachelor of 11 Science degree in Business Studies with a concentration in Accounting. In 1998, I joined 12 GE Capital Mortgage Services Inc. as a Staff Accountant. In September 1999, I joined 13 New Jersey American Water Company as a General Staff Accountant responsible for 14 financial statement preparation, account reconciliation, financial support for rate cases, 15 and account analysis. In September 2001, I was transferred to American Water Works 16 Service Company’s (“American”) Shared Services operation located in Mt. Laurel, New 17 Jersey. I was employed there for four years in a variety of positions, including Senior 18 Fixed Assets/Job Cost Accountant, Financial Support Analyst, and Accounting 19 Supervisor Fixed Assets. At American, I had the opportunity to support the rate-making 20 process by working closely with operating subsidiaries in 23 states preparing schedules 21 and exhibits and answering interrogatories. 22 In March 2005, I joined Aqua NJ where I served as Assistant Controller until 23 December 2006 when I transferred to Aqua America. In July 2008, I was promoted to 1 AQUA PENNSYLVANIA, INC. DIRECT TESTIMONY OF WILLIAM C. PACKER 1 the position of Mid-Atlantic Manager of Rates. I was promoted to Regional Controller 2 for Aqua PA and Aqua NJ in October 2012. In April 2017, I was promoted to my current 3 position of Vice President – Controller of Aqua PA. 4 In addition to my corporate experience, I am currently serving in my third term as 5 a Councilman in the Borough of Woodbury Heights, New Jersey. In this role, I currently 6 serve as the Chairman of the Finance, Administration, and Personnel committee and as a 7 member of the Public Safety and Street/Roads committees. The Borough of Woodbury 8 Heights is one of 565 municipalities in the state and has a population of approximately 9 3,000. 10 Q. What are your duties as Vice President - Controller? 11 A. As Controller, I oversee all financial accounting and reporting activities of Aqua PA. My 12 responsibilities also include oversight of all regulatory filings including base rate cases, 13 surcharges, and other compliance filings. I report directly to the Chief Accounting 14 Officer of Aqua America, who reports directly to the Chief Financial Officer. 15 Q. What is the purpose of your testimony? 16 A. The purpose of my testimony is as follows: (1) to explain the Company’s need for rate 17 relief; (2) to identify and describe the principal accounting exhibits (AP Exhibits 1-A and 18 1-B) submitted in support of Aqua PA’s proposed rate increase for water and wastewater 19 operations, respectively; (3) to explain and support the derivation of certain Company 20 expense and rate base claims; (4) to describe any major changes or other matters related 21 to rate structure and rate design; (5) to describe the Company’s proposed capital 22 structure; (6) to recommend the appropriate return on equity to be utilized in this 23 proceeding in light of the analysis of Mr. Paul R. Moul (AP Statement No. 4); (7) to 2 AQUA PENNSYLVANIA, INC. DIRECT TESTIMONY OF WILLIAM C. PACKER 1 provide an overview proposed Purchased Water and Energy Adjustment mechanisms; (8) 2 to address return on equity considerations (9) to discuss the Company’s satisfaction of the 3 commitments it made in the settlement of certain issues in its last water base rate case. 4 Q. For which of the Company’s exhibits are you responsible? 5 A. I am responsible for the primary accounting exhibits for water and wastewater operations, 6 respectively, AP Exhibits 1-A and 1-B, and Exhibit 2, which supports the Company’s 7 labor expense claims. In addition, I oversaw and assisted in the preparation of the backup 8 volumes that contain responses to the Pennsylvania Public Utility Commission’s (“PUC” 9 or the “Commission”) standard rate case filing requirements with respect to: A. Statement 10 of Income, B. Operating Revenues, C. Operating Expenses, D. Taxes, E. Rate Base, G. 11 Rate of Return, H. Rate Structure, J. Balance Sheet, and K. Other Data. 12 II. AQUA PA’S NEED FOR RATE RELIEF 13 Q. Why is Aqua PA seeking rate relief at this time? 14 A. The Company’s last water base rate case was filed nearly seven years ago. Rates 15 established in that case went effective on June 8, 2012. The Company has not filed a 16 base rate increase for its wastewater operations since October 29, 2010. Since that time, 17 the Company invested nearly $1.4 billion in utility infrastructure through March 31, 2018 18 and another $800 million approximately is projected to be invested through the fully 19 projected test year (“FPFTY”) ending March 31, 2020. 20 The Company was able to support this level of investment without increasing its 21 base rates and for a majority of this time period without implementing a Distribution 22 System Improvement Charge (“DSIC”) because of its decision to adopt a change to its 23 method of tax accounting with regard to units of property. This change allowed the 3 AQUA PENNSYLVANIA, INC. DIRECT TESTIMONY OF WILLIAM C. PACKER 1 Company to deduct certain expenditures that were previously capitalized for tax 2 accounting purposes. The change in method of accounting for repairs is described in 3 more detail in the direct testimony of William Jerdon (AP Statement No. 7). Pursuant to 4 the terms of the settlement of the Company’s 2011 water base rate case, the Company 5 flowed-through the tax effects of such repairs deductions for book and ratemaking 6 purposes. 7 The settlement of the Company’s 2011 base rate case also provided that the 8 Company would notify the Commission and the statutory parties if it decided to change 9 its method of accounting to treat certain expenditures as deductible repairs. Accordingly, 10 at the end of 2012, the Company concluded its analysis of the units of property it would 11 use under its changed method of tax for its 2012 tax year. The change, combined with 12 the use of flow-through accounting, allowed the Company to reduce its Federal and State 13 income taxes. The Company, in its December 2012 DSIC surcharge filing, reduced its 14 DSIC from its then-effective rate of 2.82% to 0.00%. The reduction of the DSIC was 15 done on a forward-looking basis in anticipation of exceeding the DSIC allowable return 16 on equity. 17 In May of 2013, the Company notified the Commission and statutory parties that: 18 (1) beginning in tax year
Load more

Recommended publications
  • Before the Public Service Commission of South Carolina
    BEFORE THE PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA DOCKET NO. 2009-226-E In the Matter of: ) ) Application of Duke Energy Carolinas, ) DIRECT TESTIMONY OF LLC for Authority to Adjust and Increase ) JAMES H. VANDER WEIDE FOR Its Electric Rates and Charges ) DUKE ENERGY CAROLINAS, LLC ) ) 1 I. INTRODUCTION AND PURPOSE 2 Q. PLEASE STATE YOUR NAME, TITLE, AND BUSINESS ADDRESS. 3 A. My name is James H. Vander Weide. I am Research Professor of Finance and 4 Economics at the Fuqua School of Business of Duke University. I am also 5 President of Financial Strategy Associates, a firm that provides strategic and 6 financial consulting services to business clients. My business address is 7 3606 Stoneybrook Drive, Durham, North Carolina 27705. 8 Q. PLEASE DESCRIBE YOUR EDUCATIONAL BACKGROUND AND 9 PRIOR ACADEMIC EXPERIENCE. 10 A. I graduated from Cornell University with a Bachelor’s Degree in Economics and 11 from Northwestern University with a Ph.D. in Finance. After joining the faculty 12 of the School of Business at Duke University, I was named Assistant Professor, 13 Associate Professor, and then Professor. 14 Since joining the faculty I have taught courses in corporate finance, 15 investment management, and management of financial institutions. I have taught 16 a graduate seminar on the theory of public utility pricing and lectured in executive 17 development seminars on the cost of capital, financial analysis, capital budgeting, 18 mergers and acquisitions, cash management, short-run financial planning, and 19 competitive strategy. I have served as Academic Program Director of executive 20 education programs at the Fuqua School of Business, including the Duke 21 Advanced Management Program, the Duke Executive Program in 22 Telecommunications, the Duke Competitive Strategies in Telecommunications 23 Program, and the Duke Program for Manager Development for managers from the 24 former Soviet Union.
    [Show full text]
  • Stein Mart, Inc.1 S
    Case 3:20-bk-02387-JAF Doc 181 Filed 08/24/20 Page 1 of 19 UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA JACKSONVILLE DIVISION www.flmb.uscourts.gov In re: Chapter 11 STEIN MART, INC.1 Case No. 20-02387 STEIN MART BUYING CORP. Case No. 20-02388 STEIN MART HOLDING CORP., Case No. 20-02389 Debtors. Jointly Administered SUPPLEMENTAL CERTIFICATE OF SERVICE I, Victoria X. Tran, depose and say that I am employed by Stretto, the claims and noticing agent for the Debtors in the above-captioned cases. On August 18, 2020, at my direction and under my supervision, employees of Stretto caused the following documents to be served via first-class mail on the service list attached hereto as Exhibit A: • Notice of Hearing and Opportunity to Participate (attached hereto as Exhibit B) • Debtors’ Chapter 11 Case Management Summary (Docket No. 3) • Debtors’ Emergency Motion Pursuant to 11 U.S.C. §§ 105(a) and 366 for an Order (I) Approving Debtors’ Proposed Form of Adequate Assurance of Payment to Utility Providers, (II) Establishing Procedures for Determining Adequate Assurance of Payment for Future Utility Services, and (III) Prohibiting Utility Providers from Altering, Refusing, or Discontinuing Utility Service (Docket No. 36) • Order Pursuant to Fed. R. Bankr. P. 1015(b) Directing Joint Administration of Related Chapter 11 Cases (Docket No. 94) 1 The tax identification numbers of the Debtors are as follows: Stein Mart, Inc. 6198; Stein Mart Buying Corp. 1114; and Stein Mart Holding Corp. 0492. The address of the Debtors’ principal offices: 1200 Riverplace Blvd., Jacksonville, FL 32207.
    [Show full text]
  • State of New Jersey Board of Public Utilities in The
    STATE OF NEW JERSEY BOARD OF PUBLIC UTILITIES IN THE MATTER OF THE PETITION OF PUBLIC SERVICE ELECTRIC AND GAS COMPANY FOR APPROVAL OF THE SECOND ENERGY STRONG PROGRAM (ENERGY STRONG II) BPU Docket Nos. EO18060629 and GO18060630 REBUTTAL TESTIMONY OF ANN E. BULKLEY Submitted on Behalf of PUBLIC SERVICE ELECTRIC AND GAS COMPANY April 18, 2019 TABLE OF CONTENTS I. INTRODUCTION .......................................................................................................... - 1 - II. EXECUTIVE SUMMARY ............................................................................................ - 2 - III. FAIR RETURN STANDARD ........................................................................................ - 5 - IV. CAPITAL MARKET CONDITIONS AND EFFECT ON MODELS ........................... - 8 - V. THE EFFECT OF TAX REFORM ON THE RETURN ON EQUITY ....................... - 20 - VI. ROE ESTIMATION METHODOLOGIES .................................................................. - 27 - VII. SUMMARY AND CONCLUSIONS ........................................................................... - 58 - - ii - 1 PUBLIC SERVICE ELECTRIC AND GAS COMPANY 2 REBUTTAL TESTIMONY 3 OF 4 ANN E. BULKLEY 5 SENIOR VICE PRESIDENT, CONCENTRIC ENERGY ADVISORS, INC. 6 I. INTRODUCTION 7 Q. Please state your name and business address. 8 A. My name is Ann E. Bulkley. I am a Senior Vice President of Concentric Energy 9 Advisors, Inc. (“Concentric”). My business address is 293 Boston Post Road West, Suite 10 500, Marlborough, Massachusetts 01752. 11 Q. On whose behalf are you submitting this testimony? 12 A. I am testifying on behalf of Public Service Electric and Gas Company (“Public 13 Service” or the “Company”), a wholly-owned subsidiary of Public Service Enterprise Group, 14 Inc. (“PSEG”). 15 Q. Did you previously provide Direct Testimony in this proceeding? 16 A. No, I did not. 17 Q. What is the purpose of your Rebuttal Testimony? 18 A. The purpose of my Rebuttal Testimony is to respond to the Direct Testimony of 19 Kevin W.
    [Show full text]
  • Exhibit No.: Issues: Support Services Witness: Patrick L. Baryenbruch Exhibit Type: Direct Sponsoring Party: Missouri-American W
    Exhibit No.: Issues: Support Services Witness: Patrick L. Baryenbruch Exhibit Type: Direct Sponsoring Party: Missouri-American Water Company Case No.: WR-2020-0344 Case No.: SR-2020-0345 Date: June 30, 2020 MISSOURI PUBLIC SERVICE COMMISSION CASE NO. WR-2020-0344 CASE NO. SR-2020-0345 DIRECT TESTIMONY OF PATRICK L. BARYENBRUCH ON BEHALF OF MISSOURI-AMERICAN WATER COMPANY AFFIDAVIT I, Patrick Baryenbruch, under penalty of perjury, and pursuant to Section 509.030, RSMo, state that I am President for Baryenbruch & Company, LLC, that the accompanying testimony has been prepared by me or under my direction and supervision; that if inquiries were made as to the facts in said testimony, I would respond as therein set forth; and that the aforesaid testimony is true and correct to the best of my knowledge and belief. ________________________ Patrick Baryenbruch June 19, 2020 Dated DIRECT TESTIMONY PATRICK L. BARYENBRUCH MISSOURI-AMERICAN WATER COMPANY CASE NO. WR-2020-0344 CASE NO. SR-2020-0345 TABLE OF CONTENTS I. INTRODUCTION .............................................................................................................. 1 II. OVERVIEW ...................................................................................................................... 3 III. IMPACT OF PROJECTED CHANGE IN SERVICE COMPANY CHARGES ...... 8 DIRECT TESTIMONY PATRICK L. BARYENBRUCH 1 I. INTRODUCTION 2 Q. Please state your name, position of employment and business address. 3 A. My name is Patrick L. Baryenbruch. I am the President of my own consulting practice, 4 Baryenbruch & Company, LLC, which was established in 1985. In that capacity, I 5 provide consulting services to utilities and their regulators. My business address is 6 2832 Claremont Road, Raleigh, North Carolina 27608. 7 Q. Summarize your academic and professional background. 8 A.
    [Show full text]
  • State of Florida Office of Public Counsel
    FILED 9/17/2018 DOCUMENT NO. 06090-2018 FPSC - COMMISSION CLERK STATE OF FLORIDA OFFICE OF PUBLIC COUNSEL do THE FLORIDA LEGISLATURE Ill WEST MADISON ST. ROOM8l:Z JOE NEGRON TALLAHASSEE. FLORIDA 32399-1400 RICHARD President ofthe Senate 1-800-342-0:Z:Z:Z CORCORAN Speaker ofthe House of J.R. KELLY EMAIL: [email protected] WWW.FLORIDAOPC.GOV Representatives Public Counsel September 17, 2018 Ms. Carlotta Stauffer, Commission Clerk Florida Public Service Commission 2540 Shumard Oak Boulevard Tallahassee, Florida 32399-0850 Re: Docket No. 20180051-GU Dear Ms. Stauffer: Please fmd enclosed for filing in the above referenced docket the Direct Testimony of Ralph Smith, CPA. This filing is being made via the Florida Public Service Commission's Web Based Electronic Filing portal. If you have any questions or concerns, please do not hesitate to contact me. Thank you for your assistance in this matter. Sincerely Is/ Virginia Ponder Virginia Ponder Associate Public Counsel cc: All Parties of Record TABLE OF CONTENTS I. INTRODUCTION .................................................................................................. 1 II. QUANTIFICATION, CLASSIFICATION AND APPLICATION OF EXCESS ACCUMULATED DEFERRED INCOME TAXES .............................. 4 III. 2018 INCOME TAX SAVINGS IN BASE RATES RELATED TO THE REDUCTION IN THE FEDERAL INCOME TAX RATE TO 21 PERCENT ............................................................................................................. 11 IV. TCJA SAVINGS RELATED TO THE COMPANY'S GAS RELIABILITY INFRASTRUCTURE PROGRAM ("GRIP") ...................................................... 13 V. WHETHER A PRIVATE LETTER RULING ("PLR") SHOULD BE REQUIRED FOR THE COMPANIES, AND ISSUES RELATED TO A PLR REQUEST .................................................................................................... 14 VI. FINDINGS AND RECOMMENDATIONS ......................................................... 18 DIRECT TESTIMONY OF RALPH SMITH On Behalf of the Office of Public Counsel Before the Florida Public Service Commission 20 180051-GU 1 I.
    [Show full text]
  • ANN E. BULKLEY Senior Vice President REPRESENTATIVE PROJECT EXPERIENCE Ms. Bulkley Has Provided a Range of Advisory Services
    ATTACHMENT A RESUME OF ANN E. BULKLEY ANN E. BULKLEY Senior Vice President Ms. Bulkley has more than two decades of management and economic consulting experience in the energy industry. Ms. Bulkley has extensive state and federal regulatory experience on both electric and natural gas issues including rate of return, cost of equity and capital structure issues. Ms. Bulkley has provided expert testimony on the cost of capital in more than 30 regulatory proceedings before regulatory commissions in Arizona, Arkansas, Colorado, Connecticut, Kansas, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, North Dakota, Oklahoma, Pennsylvania, Texas, South Dakota, West Virginia, and the Federal Energy Regulatory Commission. In addition, Ms. Bulkley has prepared and provided supporting analysis for at least forty Federal and State regulatory proceedings. In addition, Ms. Bulkley has worked on acquisition teams with investors seeking to acquire utility assets, providing valuation services including an understanding of regulation, market expected returns, and the assessment of utility risk factors. Ms. Bulkley has assisted clients with valuations of public utility and industrial properties for ratemaking, purchase and sale considerations, ad valorem tax assessments, and accounting and financial purposes. In addition, Ms. Bulkley has experience in the areas of contract and business unit valuation, strategic alliances, market restructuring and regulatory and litigation support. Prior to joining Concentric, Ms. Bulkley held senior expertise-based consulting positions at several firms, including Reed Consulting Group and Navigant Consulting, Inc. where she specialized in valuation. Ms. Bulkley holds an M.A. in economics from Boston University and a B.A. in economics and finance from Simmons College.
    [Show full text]
  • Ann E. Bulkley Senior Vice President
    Public Service Company of New Hampshire d/b/a Eversource Energy Docket No. DE 19-057 Attachment AEB-1 May 28, 2019 Page 1 of 11 Ann E. Bulkley Senior Vice President Ms. Bulkley has more than two decades of management and economic consulting experience in the energy industry. Ms. Bulkley has extensive state and federal regulatory experience on both electric and natural gas issues including rate of return, cost of equity and capital structure issues. Ms. Bulkley has provided expert testimony on the cost of capital in more than 30 regulatory proceedings before regulatory commissions in Arizona, Arkansas, Colorado, Connecticut, Kansas, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, North Dakota, Oklahoma, Pennsylvania, Texas, South Dakota, West Virginia, and the Federal Energy Regulatory Commission. In addition, Ms. Bulkley has prepared and provided supporting analysis for at least forty Federal and State regulatory proceedings. In addition, Ms. Bulkley has worked on acquisition teams with investors seeking to acquire utility assets, providing valuation services including an understanding of regulation, market expected returns, and the assessment of utility risk factors. Ms. Bulkley has assisted clients with valuations of public utility and industrial properties for ratemaking, purchase and sale considerations, ad valorem tax assessments, and accounting and financial purposes. In addition, Ms. Bulkley has experience in the areas of contract and business unit valuation, strategic alliances, market restructuring and regulatory and litigation support. Prior to joining Concentric, Ms. Bulkley held senior expertise-based consulting positions at several firms, including Reed Consulting Group and Navigant Consulting, Inc. where she specialized in valuation.
    [Show full text]
  • Ralph C. Smith the Indiana Office of Utility Consumer
    Public's Exhibit No. 2 IN THE MATTER OF THE INDIANA UTILITY : REGULATORY COMMISSION’S : INVESTIGATION INTO THE IMPACTS OF THE : TAX CUTS AND JOBS ACT OF 2017 AND : CAUSE NO. 45032-S16 POSSIBLE RATE IMPLICATIONS UNDER : PHASE 1 AND PHASE 2 FOR HAMILTON : SOUTHEASTERN UTILITIES, INC. : DIRECT TESTIMONY OF RALPH C. SMITH ON BEHALF OF THE INDIANA OFFICE OF UTILITY CONSUMER COUNSELOR September 8, 2020 DIRECT TESTIMONY OF RALPH C. SMITH TABLE OF CONTENTS ---Page I. INTRODUCTION .........................................................................................................1 II. ACCUMULATED DEFERRED INCOME TAXES RELATED TO DIFFERENCES BETWEEN BOOK AND TAX DEPRECIATION ................................5 III. FINDINGS AND RECOMMENDATIONS ...................................................................9 ATTACHMENTS: LA-1, Background and Qualifications LA-2, Calculation of Estimated Accumulated Deferred Income Taxes Related to Tax-Book Depreciation Differences LA-3, Selected Non-Confidential Hamilton Southeastern Utilities Responses to Interrogatory Requests Referenced in the Testimony I. INTRODUCTION 1 Q. Please state your name, position and business address. 2 A. Ralph C. Smith. I am a Senior Regulatory Consultant at Larkin & Associates, 3 PLLC, 15728 Farmington Road, Livonia, Michigan 48154. 4 5 Q. Please describe Larkin & Associates. 6 A. Larkin & Associates is a Certified Public Accounting and Regulatory Consulting 7 firm. The firm performs independent regulatory consulting primarily for public 8 service/utility commission staffs
    [Show full text]
  • Volume 21 Pennsylvania-American Water Company 2020 General Base Rate Case R-2020-3019369 (Water) R-2020-3019371 (Wastewater)
    VOLUME 21 PENNSYLVANIA-AMERICAN WATER COMPANY 2020 GENERAL BASE RATE CASE R-2020-3019369 (WATER) R-2020-3019371 (WASTEWATER) DIRECT TESTIMONY AND EXHIBIT OF ANN E. BULKLEY STATEMENT NO. 13 EXHIBIT NO. 13-A PAWC Statement No. 13 PENNSYLVANIA-AMERICAN WATER COMPANY Direct Testimony of Ann E. Bulkley, Senior Vice President Concentric Energy Advisors, Inc. Concerning Fair Rate of Return and Capital Structure Docket Nos. R-2020-3019369 (Water) R-2020-3019371 (Wastewater) Date April 29, 2020 Direct Testimony of Ann E. Bulkley Table of Contents Page No. I. WITNESS IDENTIFICATION AND QUALIFICATIONS ...................................................... 1 II. PURPOSE AND OVERVIEW OF TESTIMONY ................................................................. 2 III. REGULATORY PRINCIPLES ............................................................................................. 7 IV. CAPITAL MARKET CONDITIONS ................................................................................... 10 A. CURRENT MARKET CONDITIONS ...................................................................................... 11 B. THE EFFECT OF MARKET CONDITIONS ON VALUATIONS .............................................. 18 C. EFFECT OF TAX REFORM ON THE ROE AND CAPITAL STRUCTURE ............................ 29 V. PROXY GROUP SELECTION .......................................................................................... 37 VI. COST OF EQUITY ESTIMATION ..................................................................................... 44 A. IMPORTANCE
    [Show full text]
  • MIDAMERICAN ENERGY COMPANY Docket No
    MIDAMERICAN ENERGY COMPANY Docket No. EL14-XXX MidAmerican Exhibit JHV 1.1 Qualifications of James H. Vander Weide Appendix 1 Test Year Ending December 31, 2013 Page 1 of 6 APPENDIX 1 QUALIFICATIONS OF JAMES H. VANDER WEIDE, PH.D. 3606 Stoneybrook Drive Durham, NC 27705 TEL. 919.383.6659 OR 919.383.1057 [email protected] James H. Vander Weide is President of Financial Strategy Associates, a consulting firm that provides financial and economic consulting services, including cost of capital and valuation studies, to corporate clients. Dr. Vander Weide holds a Ph.D. in Finance from Northwestern University and a Bachelor of Arts in Economics from Cornell University. After receiving his Ph.D. in Finance, Dr. Vander Weide joined the faculty at Duke University, the Fuqua School of Business, and was named Assistant Professor, Associate Professor, Professor, and then Research Professor of Finance and Economics. As a Professor at Duke University and the Fuqua School of Business, Dr. Vander Weide has published research in the areas of finance and economics and taught courses in corporate finance, investment management, management of financial institutions, statistics, economics, operations research, and the theory of public utility pricing. Dr. Vander Weide has been active in executive education at Duke and Duke Corporate Education, leading executive development seminars on topics including financial analysis, cost of capital, creating shareholder value, mergers and acquisitions, capital budgeting, measuring corporate performance, and valuation. In addition, Dr. Vander Weide designed and served as Program Director for several executive education programs, including the Advanced Management Program, Competitive Strategies in Telecommunications, and the Duke Program for Manager Development for managers from the former Soviet Union.
    [Show full text]
  • Testimony - Ralph C
    Virginia State Corporation Commission eFiling CASE Document Cover Sheet Case Number (if already assigned) PUR-2020-00169 Case Name (if known) Petition of Virginia Electric and Power Company, For approval of a rate adjustment clause, designated Rider RGGI, under § 56-585.1 A 5 e of the Code of Virginia Document Type EXTE Document Description Summary OAG Testimony - Ralph C. Smith, CPA Total Number of Pages 37 Submission ID 21165 eFiling Date Stamp 3/2/2021 2:35:11PM COMMONWEALTH of VIRGINIA Office of the Attorney General Mark R. Herring 202 N. Ninth Street Attorney General Richmond, Virginia 23219 804-786-2071 March 2,2021 fax 804-786-1991 Virginia Relay Services 800-828-1120 BY ELECTRONIC FILING Mr. Bernard Logan, Clerk c/o Document Control Center State Corporation Commission P.O. Box 2118 Richmond, Virginia 23218 RE: Petition of Virginia Electric and Power Company, For approval of a rate adjustment clause, designated Rider RGGI, under § 56-585.1 A 5 e of the Code of Virginia Case No. PUR-2020-00169 Dear Mr. Logan: Please find attached for filing in the above-referenced matter, the testimony and exhibits of Mr. Ralph Smith being filed on behalf of the Office of Attorney General, Division of Consumer Counsel. Thank you for your assistance in this matter. Yours truly, /s/ C. Mitch Burton Jr. Assistant Attorney General cc: Service list CERTIFICATE OF SERVICE I hereby certify that a true copy of the foregoing was served on March 2, 2021, by electronic mail to: Arlen Bolstad, Esquire Nate Benforado, Esquire Frederick Ochsenhirt, Esquire Wilham Cleveland, Esquire Office of General Counsel Southern Environmental Law Center State Corporation Commission 201 West Main St, Suite 14 P.
    [Show full text]
  • August 24, 2018 INDIANA UTILITY REGULATORY COMMISSION
    STATE OF INDIANA INDIANA UTILITY REGULATORY COMMISSION IN THE MATTER OF THE INDIANA UTILITY ) REGULATORY COMMISSION'S ) INVESTIGATION INTO THE IMPACTS OF ) THE TAX CUTS AND JOBS ACT OF 2017 AND ) CAUSE NO. 45032 S4 POSSIBLE RATE IMPLICATIONS UNDER ) PHASE 2 FOR INDIANA AMERICAN WATER ) COMP ANY, INC. TESTIMONY OF RALPH C. SMITH - PUBLIC'S EXHIBIT NO. 2 ON BEHALF OF THE INDIANA OFFICE OF UTILITY CONSUMER COUNSELOR August 24, 2018 Respectfully Submitted, .. "' . - CERTIFICATE OF SERVICE This is to certify that a copy of the foregoing Office of Utility Consumer Counselor Testimony of Ralph C. Smith has been served upon the following counsel of record in the captioned proceeding by electronic service on August 24, 2018. Hillary J. Close Todd A. Richardson Lauren M. Box Aaron A. Schmoll BARNES & THORNBURG LLP Joseph P. Rompala 11 South Meridian Street LEWIS & KAPPES, P.C. Indianapolis, Indiana 46204 One American Square, Suite 2500 Email: [email protected] Indianapolis, JN 46282 [email protected] Email: [email protected] [email protected] [email protected] Nikki G. Shoultz Comtesy copy to: Kristina Kern Wheeler A [email protected] J. Clu·istopher Janak [email protected] BOSE MCKINNEY & EVANS LLP 111 Monument Circle, #2700 Robert M. Glennon Indianapolis, Indiana 46204 3697 N. County Road 500 E. Email: [email protected] Danville, Indiana 46122 [email protected] Email: [email protected] [email protected] Courtesy Copy to: Jennifer Washburn Margo Tucker CITIZENS ACTION COALITION 1915 West 18, Street, Suite C Indianapolis, Indiana 46202 Email: [email protected] [email protected] INDIANA OFFICE OF UTILITY CONSUMER COUNSELOR 115 West Washington Street Suite 1500 South Indianapolis, JN 46204 [email protected] 317/232-2494-Phone 317/232-5923 - Facsimile Public's Exhibit No.
    [Show full text]