Delta Natural Gas Company, Inc. Case No. 2010-001 16
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DELTA NATURAL GAS COMPANY, INC. CASE NO. 2010-001 16 ATTORNEY GENERAL'S ]INITIAL REQUEST F R INFORMATION DATED MAY 24,2010 1. Please provide copies of June year-to-date financial, operating and/or statistical reports for 2006,2007,2008 and 2009 (when available). Response: See PSC-1 Item 41 for financial statements subsequent to the test year. See our application, tab 37 for a copy of the January, 2009 through December, 2009. The financial reports for 2006 through 2008 are on file with the Public Service Commission. Sponsoring Witness: Matthew D. Wesalosky DEL,TA NATURAL GAS COMPANY, INC. CASE NO. 2010-001 16 ATTORNEY GENERAL'S INITIAL,REQUEST FOR INFORMATION DATED MAY 24,2010 2. Please provide a copy of the Board of Directors minutes for 2007, 2008, 2009 and 2010 to date. Response: The Board minutes have been filed under seal with motion for confidential treatment. Sponsoring Witness: John B. Brown DELTA NATURAL GAS COMPANY, INC. CASE NO. 201 0-001 16 ATTORNEY GENERAL'S INITIAL REQUEST FOR INFORMATION DATED MAY 24,2010 3. Please explain in detail any major changes in accounting treatment for O&M expenses, retirements, replacements and removal costs instituted by the Company since 2003. Response: The most significant change resulted from changing our capitalization threshold from $500 to $2,000 in 2004. For SEC reporting purposes, the Company reclassified cost of removal out of accumulated depreciation into regulatory liabilities, adopted SFAS 143 and adopted FIN 47. None of these changes have any impact on this rate case, as Delta has excluded all of these balances in the pro forma numbers. Sponsoring Witness: Matthew D. Wesolosky DELTA NATURAL, GAS COMPANY, INC. CASE NO. 2010-001 16 ATTORNEY GENERAL'S INITIAL, REQUEST FOR INFORMATION DATED MAY 24,2010 4. Please provide a copy of each out-of-period accounting adjustment (i-e., journal entry) recorded during the historical test period, the twelve months ending October 31, 2009, and past the test period to the present, along with an explanation of each adjustment. Response: See attached. Sponsoring Witness: Matthew D. Wesolosky DELTA NATURAL GAS COMPANY, INC Item 4 RATE CASE 2010-00116 AG OUT OF PERIOD ADJUSTMENTS YEAR ENDED DECEMBER 31,2009 llournal Entry IMonth IMonth I IAccount I Number (Recorded /Applicable IJE Description INumber IAccount Name /Amount lReclass Margaret Trusty Catering invoice from 1 921 29 I JE103 2009-1 2008-12 to 1.926.08 1.921.29 Co. Business Meals and Entertainment (446.26) Reclass Margaret Trusty Catering invoice from 1 921 29 JE103 2009-1 2008-12 to 1.926.08 1.926.08 Employee Recreation & Social 446.26 I JE104 2009-01 2008-11 Correct Bladwin Cooke billing 1.184.01 Accounts Payable - MAR Clearing 11.59 JE104 2009-01 2008-11 Correct Bladwin Cooke billing 1.921.05 Small Supply Items (11.59) JEllO 12009-01 12008-08 ICorrect Prepay Entry 11.165.05 IPrepaid Insurance I (7,632.80) JEllO 12009-01 12008-08 ICorrect Prepay Entry )1.924.00 /Insurance Expense I 7,632.80 I I I I I I JE116 2009-01 2008-12 Correct distribution for Lowes Invoice 1.232.01 Accounts Payable - General 69.31 JE116 2009-01 2008-12 Correct distribution for Lowes Invoice 1.146.05 Receivable from Enpro (69.31) JE116 2009-01 2008-12 Correct distribution for Lowes Invoice 5.232.00 Accounts Payable (69.31) JE116 2009-01 7008-12 Correct distribution for Lowes Invoice 5234.01 Pavable to Delta Natural 69.31 JElOS 12009-02 12008-05 /Correct invoice distribution for A&B Deburring Co. 11.894.01 !Maintenance of Other Equipment - Payroll 1 (169.54) I I I I I I JE105 2009-02 2008-05 Correct invoice distribution for A&B Deburring Co. 1.894.02 Maintenance of Other Equipment - Other 169.54 Correct invoice distribution for Barney's Repair and Canada Mountain Maintenance of JE113 2009-03 2008-10 Machine, Inc. 1.834.01 Compressor Station equipment - Payroll (114.33) Correct invoice distribution for Barney's Repair and Canada Mountain Maintenance of DELTA NATURAL GAS COMPANY, INC. CASE NO. 2010-001 16 ATTORNEY GENERAL'S INITIAL, REQUEST FOR INFORMATION DATED MAY 24,2010 5. Please provide an analysis (description, dates and amounts) of any gains or losses on utility property sold in 2007, 2008,2009 and 201 0 to date. Response: See attached. Sponsoring Witness: Matthew D. Wesolosky tl 5 m i- >W U ca, ffl W 3 0- 2 't:x W a, Q 5 E! ,-c Q -0 -a, El II) -m "_m w-- 0 0 2 -W Q m Ua, ffl u- W 0 5 c L 0 .-0 w-- c 1- v) U 0 W Q x 0 .-cn 0 U II) W U 5 K c m 0 "0 v) F W L ffl 3 m 0 -0 f L 0 2 .-Elv) s m cn n, 1-c W .-N 8 c 0) 3.; 0 't: 0 W 2 Q c E! 0 Q K t 0 K w-- 0 a, 5 C 0 2 v) m 8 - n no 2 z zz 3 6 6Q cm z w ww m 0 00 -c u uu a, u LLLL n 0 00 DELTA NATURAL GAS COMPANY, INC. CASE NO. 2010-00116 ATTORNEY GENERAL'S INITIAL REQUEST FOR INFORMATION DATED MAY 24,2010 6. Please provide a complete breakdown of other income, net, for 2007, 2008, 2009 and 2010 to date. Identify the jurisdictional portion of each element. R.esponse: See attached for account detail of Other Income, Net. These amounts are non-regulated and not included in the rate case. Sponsoring Witness: Matthew D. Wesolosky W n m .- m In h 2M Y n nn 0 m CQN h m mwnw 0- 2 x m 00 w03 6 N m .- M 2 h N" M2 2h W h n h YI m h i? 0 h- ". m .- x h w 2Y P 8 z 0 W 8 Z 4 I 8 .- H I 0 0 9 ;3 ? c- 0 00 M vi a .oE ,E% wo3 52-8s OGU E 0 0 10 0 P, E N6 8 h- f N c, 0 3 0 M 2 E DELTA NATURAL GAS COMPANY, INC. CASE NO. 2010-00116 ATTORNEY GENERAL'S INITIAL REQUEST FOR INFORMATION DATED MAY 24,2010 7. Provide the monthly financial and operating reports for every month from October 2006 to present. Response: See PSC-1 Item 41 for financial statements subsequent to the test year. See our application, tab 37 for a copy of the January, 2009 through December, 2009. The financial reports for 2006 through 2008 are on file with the Public Service Commission. Sponsoring Witness: Matthew D. Wesolosky DELTA NATURAL GAS COMPANY, INC. CASE NO. 2010-00116 ATTORNEY GENERAL'S INITIAL REQUEST FOR INFORMATION DATED MAY 24,2010 8. Provide the twelve months-ending return on common equity for each month from January 2006 to present. Response: The twelve months-ending return on common equity for each month from January 2006 to present is information that Delta does not compile. There is a yearly report that was furnished to the Public Service Commission in the first data request, tab #3S, which gives the return on equity at December 2009,2008,2007,2006,200S and 2004. Sponsoring Witness: John B. Brown DELTA NATIJML GAS COMPANY, INC. CASE NO. 2010-00116 ATTORNEY GENERAL'S INITIAL REQUEST FOR INFORMATION DATED MAY 24,2010 9. Please supply a copy of Delta's latest Ten Year Demand Forecast. Response: Delta does not have such document. Sponsoring Witness: John B. Brown DELTA NATIJRAL GAS COMPANY, INC. CASE NO. 2010-001 16 ATTORNEY GENERAL'S INITIAL REQUEST FOR INFORMATION DATED MAY 24,2010 10. Please list all year end closing and adjusting accounting entries, both internal and those made by your external auditors for 2006, 2007, 2008 and 2009. Response: See attached support. Sponsoring Witness: Matthew D. Wesolosky JUNE 2W6 Crl xIT GATCII: JE * DErcliPllCn FREPAfltU FI!lFPET POSTED - -I- i I.! I ?,"< 101 TRUE UPSCtICOLIkY +-I;-- i1.1 'I! -- 102 Relire Exlenson Uepasd Prepay Agieemenls ME ME KAE 9.107.W I , 103 Reliff Erlension Depoiil Prolnissofy Nole Agfeemenls KAt KAE KAE SIG.334W ! 137 CORRECT ACCOUNT DISTRIBUNON ON JE 129 fourdlno Tt.I TM T1.I 402 I 138 RECORD BONUS ACCRUAL DS 05 os SBO.COVM 1 139 RECORD BONUS ACCRUPL 0: DS DS 1.1GO.WOW 1 140 ARU ENTRY FOR MAINS AND SERVICES TI.( TtA T t.4 \.fili5.891.1? 1 141 RECLASSl.IEDICAI. PvIlil TOPAYABLESlper JB MJC IIJC 1.UC i6.71443 1 142 YEARENDTAX ENTRY MJC MJC MJC 8.G91.825W 1 143 CORRECT TAX ENiRY 1t.4 T tA TY 2WW 1 Top01 TGDslSrd Eolly 10 iCSldii debt1 lnCOf!lE L?X D3!2PCe5 ThI iU TM 345.08iM 1 145 Posl Chrmo Tar Enlry ru TM T1A i10(15?M 2 JUNE 2007 PREPARED ENTERED POSTED DRAMT BATCH# JE # Description KA E KAE KAE 28083 1 101 Transfer charges from 511-01-288610 511417 TM rM TM 33,10000 I 1 102 RIC FLOWCAL INVOICE TO PREPAID .THIS IS AN ANNUAL MAINTENANCE FROM 6-07.6-08 KAE KAE I KAE I 31 57 I 1 103 Correct Inventory charges from 1 887 01 to 1 887 02 as of June KAE KAE KAE 2,195.00 1 104 Reconcile ARO Unrecovered Adoption Cos1 KAE KA E KAE 975.00 1 TM TM TM 26,633.50 I 1 106 REVERSE RECLASS MEDICAL PLAN PAYMENT TO PAYABLES TM TM TM 105.31 1 107 REVERSE RECLASS MEDICAL PLAN PAYMENT TO PAYABLES KAE ME UAE 2,138.80 I 1 108 Correct Acct Distribution on GEM Construction Invoice sk sk sk 8,235.48 1 1 108 Reversal Reclass Gasco lrom June Io May KAE KAE KAE 35,000.00 i 109 Record Extension Deposil Agreement lor WO 503-301 sk sk sk 3.00 I 1 110 Record service charges on Admin.