Subject: Rainier View Water Company, Inc. Via E-Mail

Ref: UT 4-1247 August 4, 2011 UW-111399

Mr. Richard Finnigan 2112 Black Lake Blvd. SW Olympia, Washington 98512

Subject: Rainier View Water Company, Inc. Via E-mail General Rate Filing Data Request 1

Dear Mr. Finnigan:

The Washington Utilities and Transportation Commission (Commission) has received the above filing. To help Staff understand this filing, please provide the items listed below. Additionally, if possible, please provide this by electronic format compatible with Excel software.

1. Please provide a copy of the company’s general ledger for the test period containing expense detail at the individual check level. The previously submitted general ledger shows expenses at summary level only. Please provide this in Excel format.

2. Provide detailed supporting documentation for all assets purchased after 2008 ($31,298,069 – ’08 general rate case (GRC) vs. $37,623,650 – ’10 depreciation schedule) in the amount of $6,325,581 (electronically, in Excel if possible).

3. Please provide copies of all outstanding loans and notes, with dates, interest rate, etc.

4. Please provide copies of current statements or invoices showing the new rates for dental and medical increases. What percentage of the insurance premiums are paid for by the company, and what percentage is paid for by the staff? If this percentage is different for dental or medical coverage, please list the different rates for the different coverages.

5. Please explain and demonstrate how the company came up with 4% for the payroll increase adjustment. Please provide copies of contracts or other signed labor agreements related to staff pay with which the company must comply

6. Explain and demonstrate why the company’s latest quarterly reports for the $1.81 treatment surcharge collection (UW-090655) have had a declining surcharge billed balance: a. 2nd qtr ’11 - $4,684,878.99 b. 1st qtr ’11 - $n/a c. 4th qtr ’10 - $4,867,186.80 Page 2 7. Please explain and demonstrate why the company chose not to use AWWA capacity factors in adjusting base charges. Also, demonstrate what method the company did use for adjusting the base charges.

8. During the last rate case (UW-091466), the Commissioners and staff discussed with the company about shifting the two different customer classes (residential & non-residential) over a period of three rate cases (UW-091466, the current GRC, and a future GRC) to a balanced rate design for all customers regardless of class and purpose of usage. Please explain why the company choose to ignore the shift of non-residential customers being subsidized by residential customers in their proposed rate design?

9. Explain why, in the company’s rate design model, hard coded total usage data does not always equal the broken-out monthly usage data?

10. Please explain the nature of “meter no bill” and “flat no bill” base customers?

11. Explain the nature of the rate design for “Firgrove Fall” and “Firgrove Spring” and why they have a different rate design from all other customer classes. Also, where could staff find these rates? Give a docket number for the tariff or contract that is filed with the commission.

12. Provide usage data by customer by month for the test period.

13. On the company’s balance sheet, explain the nature of “advances for construction”. Who provided these advances?

14. Please provide a breakdown of balance sheet account “Customer Deposits” showing the deposits and the interest (0.26%) being paid/deposited. Is a separate account maintained for these funds? If so, please provide copies of bank statements for the beginning and end of year.

15. How are costs related to the new buildings occupied in 2009 allocated among the three affiliated companies Mountain Mist, Richardson Well Drilling, and Rainier View? Please show the annual cost charged to each company for the test year.

16. Please provide copies of board of directors meeting minutes for January, April, June, September, and December, 2010.

Data requests responses, discussions, and staff analysis needs to be completed by end of business on August 15, 2011, so staff can prepare materials for the agenda and avoid any delays in the effective date of this filing. Currently this item is scheduled for presentation to the commission on August 25, 2011. If you have any questions, please contact me at [email protected] or (360) 664-1247.

Sincerely,

Amy White Page 3 Regulatory Analyst