ML19347D290
| ML19347D290 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 07/31/1980 |
| From: | Ault F SAN DIEGO GAS & ELECTRIC CO. |
| To: | |
| Shared Package | |
| ML13302A498 | List: |
| References | |
| NUDOCS 8103110751 | |
| Download: ML19347D290 (63) | |
Text
^
C. c-.
(
g APPLICATION NO.
EXHIBIT NO.
(SDG& E - 2)
San Diego Gas & Electric 1981 TEST YEAR COMPARATIVE FINANCIAL DATA 1978 VS.1979 AND
SUMMARY
OF EARNINGS i
COMBINED DEPARTMENTS 1975,1976,1977,1978,1979, 1980 AND 1981 l
INCLUDING PREPARED TESTIMONY BU').;E T'-:t Pifill^ UTILITIES COMMISSION OF THE STATE OF CALIFORNIA JULY 1980 810811016\\
,,. -..... _ -, ~..,....., ~.. - _., _., -,.,...,. -.... - _..
i COMPARATIVE FINANCIAL DATA 1978 vs. 1979 AND
SUMMARY
OF EARNINGS COMBINED DEPARTMENTS 1975, 1976, 1977, 1978, 1979, 1980 and 1981 INTRODUCTION The following material consists of:
- 1) comparative financial data for the recorded years 1978 and 1979; 2) tables showing the development of factors used to allocate common expenses and common plant among the three operating departments for the recorded years 1978 and 1979 and estimated years 1980 and 1981; and 3) summaries of earnings for the combined departments for the recorded year 1975 through 1979, 1980 as expected and 1981 test year.
The primary purpose of this exhibit is to provide information on the combined utility operations of the Company.
The coamon alloca-tions included herein provide the basis on which certain items not specifically related to the electric, the gas or the steam operations are assigned to those operations in order to distribute l
the total cost of service.
The summary of earnings tables develop the combined results of operations of the gas and electric depart-ments.
T E
COMBINED DEPARTMENTS CHAPTER TITLE 1
Balance Sheet, Comparative Income and Retained Earnings, Clearing Accounts i
2 Allocation of Customer Accounting and Collecting Expenses l
3 Allocation of Administrative and General Expenses 4
Allocation of Depreciation Reserve and Expense for Common Utility Plant l
5 Summary of Earnings i
i -
{
}
a.
5
~1 CHAPTER 1 COMBINED DEPARTMENTS 2
BALANCE SHEET, COMPARATIVE INCOME, RETAINED EARNINGS AND CLEARING ACCOUNTS 3
PREPARED DIRECT TESTIMONY OF FRANK H. AULT 4
1.
Q.
Mr. Ault, what is the purpose of your testimony 5
before the Commission in this proceeding?
6 A.
I am sponsoring Chapter 1 of this exhibit regard-7 ing balance sheet, comparative income, retained 8
earnings, and clearing accounts for the combined 9
Departments pertaining to the recorded years 1978 10 and 1979.
11 2.
Q.
Please explain the significance of Tables 1-A 12 through 1-D.
13 A.
These tables report the financial position of the 14 Company.
The figures for 1978 and 1979 are on a 15 recorded basis.
Table 1-A is a comparative bal-16 ance sheet of the Company at December 31, 1978, l
17 and 1979.
Table 1-B is a schedule of investment 18 in utility plant on December 31, 1978, and 1979.
l 19 Table 1-C is a comparative statement of income and 20 retained earnings for the years ended December 31, 21 1978, and 1979.
Table 1-D is a schedule of all 22 Company clearing accounts and the uncleared bal-23 ances as of December 31, 1978, and 1979.
24 3.
Q.
Company assets on sheet 1 of Table 1-A increased l
25 significantly from December 31, 1978, to l
26 December 31, 1979.
Would you please explain this 27 increase?
i l
28 A.
The major item increasing assets from December 31, i
1-1
l 1
s g
1978, to December 31, 1979, was the addition to 2
utility plant on line 2 of $222 million.
Table 1-B 3
shows a complete breakdown of the amount of i
4 Utility Plant, included on line 2, sheet 1 of 5
Table 1-A, by electric, gas and steam plant, and l
6 shows whether the plant is in service, con-7 struction work in progress, plant held for future 8
use, plant completed-not classified, or plant 9
acquisition adjustment.
The figures in Table 1-B 10 include the allocation of common plant to each 11 department.
12 Utility Plant In Service, line 2 of Table 1-B 13 for the Electric Department, increased $129 mil-14 liCD' Primarily as the result of additional dis-15 tribution and transmission facilities to serve new i
16 customers.
The additional distribution and trans-17 mission facilities placed in Plant In Service in 18 1979 totaled $87 million.
In addition, $18 mil-19 lion applicable to Encina Unit 5 and the Combined' 20 Chimney on Encina Unit 5 was placed in Plant In 21 Service in 1979, as well as $12 million in waste 22 water treatment systems for four of the company's
- 23 Plants.
Certain of these dollars placed in Plant 24 In Service in 1979 were transferred from Plant 25 Completed-not Classi.fied at the end of 1978, 26 accounting for the reduction on line 5 of Table 1-B.
27 The other major item increasing Electric 23 Plant during the year 1979 was the addition of l
l l-2 i
i 1
$123 million in Construction Work In Progress.
2
$100 million of that increase was applicable to 3
San onofre Units 2 and 3.
Of the $447 million of 4
Construction Work Jn Progress at December 31, 5
1979, $379 million was applicable to San Onofre 6
Units 2 and 3.
1 7
4.
Q.
What caused Fuel Oil, line 16 on sheet 1 of Table 8
1-A, to increase S28 million between December 31, 9
1978, and December 31, 1979?
10
./L.
This increase in fuel oil inventory was the result 11 of two primary factors.
First, the moving average 12 cost of fuel oil in inventory increased from 13
$17.08 per barrel at December 31, 1978, to $24.35 14 per barrel at December 31, 1979.
At the same 15 time, the number of barrels in inventory increased 16 by 452,000 barrels in 1979.
17 5.
Q.
Regulatory Balancing Accounts-Undercollected, line 18 18 on sheet 1 of Table 1-A, increased $42 million i
i 19 during 1979.
Would you please explain this increase?
20 A.
Yes.
$30 million of the 1979 undercollection was 21 applicable to the electric ECAC mechanism which 22 had an undercollected balance of $46 million as of 23 December 31, 1979.
In addition, the PGA balancing I
24 account increased $12 million during 1979, to a 25 total undercollection of S.!2 million as of De-26 cember 31, 1979.
27 6.
.Q.
Is _there any relationship between the increase in l
28 Extraordinary Property Losses and the decrease in 1-3
t 1
Other Deferred Debits, lines 23 and 24 on sheet 1 2
of Table 1-A?
3 A.
Extraordinary Property Losses, shown on line 23, 4
increased approximately $31 million during 1979, 5
to a total of $38 million on December 31, 1979.
6 This increase was caused by the transfer of l
7 approximately $38 million of costs applicable to 8
the haandoned Sundesert Project from Other De-9 ferred Debits on line 24 during the year 1979, 10 resulting from the Company's General Rate Decision 11 90405, of June 5, 1979.
12 7.
Q.
What caused the increase in total Proprietary 13 Capital as shown on line 9 on sheet 2 of Table 1-A 14 between December 31, 1978, and December 31, 1979?
15 A.
Common Stock Issued, line 3, increased $18 million 16 during 1979, and the Premium on Capital Stock, 17 line 6, increased approximately $36 million.
The 18 increase in these two items was the result of the 19 Company's issuance of 3,595,000 shares of Common l
20 Stock during 1979.
3,000,000 of these shares were 21 issued in a general sale to the public in July, i
22 1979, while the remaining 595,000 shares were
%g issued throughout the year to the Company's Divi-24 dend ReinvestL.ent Plan and to the Company's Employee 25 Savings Plan.
26 8.
Q.
What Long-Term Debt did the Company issue in 1979?
27 A.
Other Long-Term Debt, line 13 on sheet 2 of Table 28 1-A, increased approximately $68 million during 1-4 I
i 1
1979, Primarily as the result of the Company's 2
issuance of $65 million in term loans to three 3
foreign banks.
These term loans are due during 4
the time period of 1983 through 198G.
The addi-5 tion of this $65 million in foreign term loans 6
increased total other Long-Term Debt to over S125 7
million.
The Company also issued $5.7 million of 8
Pollution control bonds with the proceeds to be 9
received as expenditures are made on certain 10 Pollution control facilities.
S4.7 million was 11 received in 1979 via this financing mechanism.
i 12 9.
Q.
Short-term borrowings in the form of Commercial i
13 Paper and Bankers' Acceptances increased signif-14 icantly in 1979.
What caused these increases?
15 A.
The Company's Commercial Paper outstanding at 1
- 16 December 31, 1979, line 17 on sheet 2 of Table 1-A, i
17 totaled over S95 million, compared to approxi-18 mately $21 million at December 31, 1978.
This $74 l
19 million increase was used primarily to finance the 20 Company's construction program and ECAC under-I l
21 collections.
Bankers' Acceptances, shown on line 22 18, are used to finance the Company's fuel oil 23 inventory.
Total Bankers' Acceptances outstand-24 ing at December 31, 1979, were $60 million, an 25 incraase of $36 million over the S24 willion 26 outstanding at December 31, 1978.
This increase l
27 Parallels the increase in. fuel oil inventory I
i 28 discussed in Answer 4.
l l
i l
1-5
1 10.
Q.
Regulatory Balancing Accounts-Overcollected, line 2
24 on sheet 2 ef Table 1-A, increased $26 million 3
during 1979.
What caused this increase?
4 A.
The Company's Regulatory Balancing Accounts, which 5
were in an overcollected state as of December 31, 6
1979, totaled approximately $27 million, an increase 7
of $26 million over the balance at December 31, i
8 1978.
This $26 million increase in 1979 was all 9
applicable to the gas supply Adjustment Mechanism 10 (SAM) and partially offsets the S42 million net 11 undercollections experienced in 1979 in the Company's 12 ECAC and PGA Balancing Accounts as snown on line 13 18 of sheet 1 of Table 1-A.
14 11.
Q.
What caused the $50 million decrease in the Cur-15 rent Portion of Long-Term Debt on line 25 on sheet 16 2 of Table 1-A i' 1979?
17 A.
The Current Port in of Long-Term Debt decreased 18
$50 milli 6n during 1979 as the result of the 19 Company's retirement, on December 15, 1979, of its 20
$50 million Series N First Mortgage Bonds which 21 became due on that date.
l 22 12.
Q.
Table 1-C shows the comparative statements of income and retained earnings of the Company for 23 24 the years ended December 31, 1978, and 1979.
25 Please explain what caused the $132 million increase 26 in Operating Revenues between 197'd and 1979.
27 A.
Total Operr7ing Revenues increased $132 million l
28 between the two years, primarily as the result of l
1-6 1
I i
i 1
increases in the Company's ECAC and PGA rates to 2
offset increased costs of fuel oil and natural 3
gas, and the S70.9 million of general rate relief 4
granted in the Company's Interim Rate Decision 5
89857 of January, 1979, and the General Rate 6
Decision 90405 of June, 1979.
7 13.
Q.
Was the S113 million increase in Operating Expenses 8
on line 7 of Table 1-C Ine result of increased 9
cost of fuel oil and natural gas, along with the 10 effects of inflation on other operating expenses?
11 A.
Yes.
12 14.
Q.
What caused the $10 million increase in depre-13 ciation and amortization expense in 1979 compared 14 to 1978?
15 A.
Depreciation and snortization of the Company's 16 Plant, on line 9 of Table 1-C, increated approxi-17 mately S10 million.
This increase included approxi-18 mately SS million of additional amortization 19 attributable to abandoned plant, primarily the 20 Sundesert Plant, which is to be written off over a 21 five-year period in accordance with the Company's l
22 General Rate Decision 30405 of June, 1979.
The 23 remaining increase in depreciation and amorti-24 zation is the result of the depreciation on the l
25 Company's increased Plant In Service.
26 15.
Q.
Did the write-off of the Sundesert Allowance for 27 Funds Used During Construction (AFUDC), as ordered 28 in Decision 90405, impact the anount shown in 1-7
1 Table 1-C for 1979?
2 A
Yes.
The total AFUDC, line 18, for other Funds and line 29 for Borrowed Funds, increased in 1979, 3
i l
4 as compared to 1978 by approximately S3.5 million.
I 5
The increase was only $3.5 million as a result of the Company writing off in 1979 approximately $3.1 6
million of AFUDC applicable to the Sundesert Plant 7
8 in accordance with the Company's June, 1979, 9
General Rate Decision 90405.
i 10 Excluding the S3.1 million that was written off, AFUDC actually increased approximately $6.6 11 12 million.
This increase was primarily due to the 13 expanded amount cf Construction Work In PI7gress 14 represented by sin Onofre Units 2 and 3.
15 16.
Q.
Please explain the increase in the amount of Lons-16 Tara Debt interest in 1979 compared to 1978 as 17 shown on line 25 of Table 1-C.
l l
18 A.
Interest on Long-Term Debt increased 37.3 million in 1979 over 1978 as the result of ;5.4 million 19 20 applicable to the $65 million term loan issued in 21 4 April, 1979, and $1.9 million of a full year's l
22 interest on the Series R First Mortgage Bonds 23 issued in May, 1978.
24 17.
Q.
Referring tc Table 1-D, please explain the basic 23 purpose of clearing accounts as used by the company.
26 A.
The Company maintains clearing accounts to dis-l 27 tribute charges of such a general nature that they 1
28 are not readily chargeable to a specific construc-1-8
I t
I tion or expense account.
2 18.
Q.
What do the debit or credit balances in these 3
accounts represent?
4 A.
The balances represent the difference between the 5
expenses charged t3 these clearing accounts and 6
amounts credited.
For example, all expenses 7
associated with transportation, tool and work 8
equipment are charged to that clearing account.
9 Credits are generated through the application of 10 hourly rates for the use of each type of vehicle 11 or piece of equipment.
12 19.
Q.
Have any of the figures in Chapter 1 been adjusted?
13 A.
All figures shown in Chapter 1 are identical with 14 those on the Company's published financial state-15 ments for 1979.
16 20.
Q.
Does that conclude your Prepared Direct Testimony 17,
on this Chapter?
18 A.
Yes.
19 20 21 i
22 23 h
24 '
25 26 27 28 I
l-9 L
t
s t
1 CHAPTER 1 BALANCE SHEET, COMPARATIVE INCOME i
AND RETAINED EARNINGS, CLEARING ACCOUNTS f
LISTING OF TABLES TABLE TITLE Table 1-A COMPARATIVE BALANCE SHEET Table 1-B UTILITY PLANT INVESTMENT Table 1-C COMPARATIVE INCOME AND RETAINED EARNINGS Table 1-D CLEARING ACCOUNTS 9
i
~
.~. --,-
4 TABLE 1-A Sheet 1 of 2 TABLE l-A
~
COMPARATIVE BALANCE SHEET Line Thousands of Dollars December 31, December 31, No.
Item 1970 1979
( A)
(B)
(C )
(D )
- 1..
Assets and Other Debits 2.
Utility Plant S1 568 472 S1 790 040 3.
Nuclear Fuel 11 185 11 185 4.
Less Provision for Depreciation & Amortization 344 945 381 437 5.
Net Utility Plant 1 234 712 1 419 788 6.
Nonutility Property (Ne t) 5 529 5 196 7.
Investments in Associated Companies 7 896 9 150 8.
Other Investments 860 769 9.
Sinking Funds 1 397 1 000 10.
Total Other Property and Investments 15 682 16 115
- r
'11.
Current and Acerued Assets l
12.
Cash and Temporary Investments 4 268 15 819 13.
Notes and Accounts Receivable (Less Provision for Uncol-lectible Accounts: 1978, S370,000; 1979, S486,000) 82 411 65 260 14.
Notes and Accounts Receivable from Assoc. Companies 18 080 16 685 15.
Plant Materials and Operating Supplies 22 555 22 222 l
16.
Fuel Oil 44 638 72 577 l
17.
Prepayments 924 1 104 i
18.
Regulatory Balancing Accounts-Undercollected 25 898 67 909 19.
'Other Current-& Accrued Assets 81 81 20.
Total Current & Accrued Assets 198 855 261 657 21.
Deferred Debits 22.
Unamortized Debt Expense 1 410 1 411 l
23.-
Extraordinary Property Losses 7 431 38 195 24.
Other Deferred Debits 82 423 45 399 25.
Total Deferred Debits 91~264 85 005 26.
~ Total Assets S1 540 513 51 782 565 I
l l
1-A-1 l
TABLE l-A Sheet 2 of 2 TABLE l-A COMPARATIVE BALANCE SHEET Thousands of Dollars Line December 31, December 31, No.
Item 1978 1979
~E (B)
(C)
(D)
(A 1.
Liabilities and Other Credits i
2.
Proprietary Capital l
3.
Common Stock Issued 137 964 S
155 941 4.
Non-Redeemable Preferred Stock 128 500 128 500 5.
Redeemable Preferred Stock 85 000 85 000 6.
Premium on Capital Stock 200 014 235 765 7.
Less Capital Stock Expense 15 452 17 289 4
8.
Retained Earnings 157 928 166 808 9.
Total Proprietary Capital 693 954 754 725 10.
Lvag-Term Debt 11.
Bonds 494 000 494 000 12.
Sinking Fund Debentures 24 600 23 825 13.
Other Long-Term Debt 57 873 125 539 14.
Discount Less Premium on Issues (3 408)
(3 286) 15.
Total Long-Term Debt 573 065 640 078 15.
Current & Accrued Liabilities 17.
Commercial Paper 21 295 95 420 18.
Bankers ' Acceptances 23 600 60 000 19.
Accounts Payable 55,252 73 817 20.
Customer Deposits 5 361 6 287 21.
Taxes Accrued 12 311 19 472 22.
Interest-Accrued 13 808 14 510 23.
Dividends Payable 14 344 16 261 24.
Regulatory Balancing Accounts-Overcollected 1 225 26 853 25.
Current Portion of Long-Term Debt 53 037 3 058 26.
Other Current & Accrued Liabilities 16 538 15 754 27.
Total Current & Accrued Liabilities 216 971 331 432 28.
Deferred Credits 29.
Customer Advances for Construction 21 291 24 577 30.
Other Deferred Credits 31 468 30 202 31.
Total Deferred Credits 52 759 54 779 32.
Injuries & Damages Reserve 1 553 1 332 33.
Deferred Income Taxes 2 211 219 34.
Total Liabilities
$1 540 513
$1 782 565 1-A-2
l TABLE l-B Sheet 1 of I TABLE 1-B UTILITY PLANT INVESTMENT l
Line Thousands of Dollars December 31, December 31, No.
Item 1978 i
(,V (B) 1979
\\
(C)
(0) l 1.
Electric Plant 2.
Plant in Service S
882 636 S1 011 625 3.
Construction Work in Progress 324 077 446 759 4.
' Plant Held for Future Use 63 528 65 556 5.
Plant Completed - Construction not Classified 77 125 29 212 6.
Plant Acquisitidn Adjustment 816 816 7.
Total Electric Plant
_1 348 182 1 553 9~EE 8.
Gas Plant 9.
Plant in Service 212 827 228 506 10.
Construction Work in Progress 1 145 1 120 11.
Plant Completed - Construction not Classified 4 947 5 069 12.
Plant Held for Future Use 45 45 13.
Total Gas Plant 218 964 234 740 14.
Steam Plant 15.
Plant in Service 1 300 1 326 16.
Construction Work in Progress 8
17.
Plant Completed - Construction 2
not Classified 18 4
18.
Total fteam Plant 1 376 1 332 19.
Total Utility Plant l
S1 568 472 51 790 040 l
t 1-B-1
TABLE l-C TABLE l-C Sheet 1 of 1 COMPARATIVE INCOME AND RETAINED EARNINGS (Thousands of Dollars)
For the 12 Months Ended Line December 31, December 31, No.
Item 1978 1979 M)
(B )
(C)
(D) 1.
Operating Revenues 2.
Electric
$ 468 400 S 592 549 3.
Gas 144 210 151 700 3
4.
Steam 1 013 983 5.
Total Operating Revenues 613 623 745 232 6.
Operating Expenses 7.
Operating 428 186 540 842
-8.
Maintenance 23 839 31 218 9.
Depreciation & Amortization 37 980 47 592 10.
Taxes 32 209 28 347 11.
Total Operating Expenses 522 214 647 999 12.
Net Operating Income 13.
Electric 68 026 89 305 14.
Gas 23 412 7 912
- 15. -
Steam (29 )
16 16.
Total Net Operating Income 91 409 97 233 17.
Other Income & Deductions 18.
Allowance for Other Funds Used During Construction 13 900 18 033 19.
Other Income 3 024 5 278 20.
Other Income Deductions 982 1 550 21.
Taxes on other Income &
Deductions (8 602)
(7 397) 22.
Total other Income & Deductions 24 544 29 158 23.
Income Before Interest Charges 115 953 126 391 24.
Interest Charges 25.
Long-Term Debt 47 390 54 657 26.
Short-Term Borrowing 8 956 7 083 27.
Amortization of Debt Discount
& Expense, Less Premium 382 380 28.
Other 286 1 307 29.
Allowance for Borrowed Funds l
Used During Construction (7 863)
(7 202) l
. 30.
Total Interest Charges 49 151 56 225 31.
Net Income 66 802 70 166 32.
Retained Earnings 33.
Retained Earnings at Begin-ning of Period 143 813 157 928 34.
. Total 210 615 228 094 35.
. Dividends 36.
Preferred 17 230 17 643 37.
RCommon 35 457 43 643 l
38.
Total Dividends-52 687 61 286
/
39.
Retained Earnings at end of Period S 157 928
$ 166 808 l
1-C-1
}
l TABLE 1-D Sheet 1 of 1 TABLE 1-D CLEARING ACCOUNTS (Thousands of Dollars)
Line Uncleared Palances No.
Decemoer 31, December 31, Description 1978 (A)
B) 1979 (C)
(DJ 1.
Transportation, Tool and Work Equipment Expense S1 391 S3 053 Sales o'f Merchandise to Employees 2.
76 115 3.
Shop Expense 8
(5) 4.
Labor Distribution Adjustment (27) 60 5.
Multilith and Ozclid operation 23 20 6
Engineering Overheads (6) 172 7.
Data Systems 35 (64) 8 Work Order Clearing 1 023 9.
Miscellaneous 200 2
2 10 Totals S2 525 S3 553
.1-D-1
1 CHAPTER 2 COMBINED DEPARTMENTS 2
ALLOCATION OF CUSTOMER ACCOUNTING AND COLLECTION EXPENSES PREPARED DIRECT TESTIMONY OF FRANK H. AULT 3
4 1.
Q.
Mr. Ault, what is the purpose of your testimony 5
before the Commission in thi3 proceeding?
6 A.
I am sponsoring Chapter 2 of this exhibit re-7 garding allocation of customer accounting and 8
collection expenses.
9 2.
Q.
Would you briefly explain the types of items 10 which are included in customer accounting and 11 collection expenses and to which accounts these 12 expenses are charged?
13 A.
The Company's customer accounting and collection 14 expenses include such items as employee salaries 15 and expenses for billing, collecting, meter l
16 reading, processing customer orders, charges for 17 data systems, postage ud incollectible accounts.
18 These expenses are recorded in Accounts 901 through 19 905.
20 3.
Q.
What is shown on Table 2-A?
l 21 A.
Table 2'A shows the recorded customer accounting 22 and collection expenses on a Combined Department l
23 basis for the years 1975 through 1979.
The table 24 also shows these expenses on a Combined De-i i
25 partment basis for 1980 as expected,1981 Test l
26 Year, and 1981 Test Year on a zero fuel basis.
27 4.
Q.
Are these expenses allocated to the various 28 departments?
i 2-1 1
l 3
A.
Yes, with the exception of uncollectible accounts, 2
Account 904.
These expenses are allocat d based 3
on the number of customers in erch department, l
with extra weight being given to customers re-4 0
5 quiring special handling.
A customet account 6
requiring special handling is one which is not a joint gas and electric account or one requiring a 7
8 manual bill.
9 5.
Q.
Is the derivation of the allocation percentages 10 for customer accounting and collec: ion expenses 11 shown in this Chapter?
12 A.
Yes, the deri' ration of the actual allocation 13 Percentages for the years 1978 and 1979 are shown 14 in Table 2-D.
As shown on this table, 62.29 15 Percent of customer accounting and collection 16 expenses were allocated to the Electric Department 17 in 1978.
This percentage increased to 62.72 18 Percent in 1979.
The Gas Department allocation 19 for 1978 was 37.70 percent, which decreased to 20 37.27 percent in 1979.
21 The allocation percentages for 1980 and 1981 22 were estimrted by trending the actual allocation 23 Percentages pertaining to the Electric Depart-24 ment for 1975 through 1979, using the least square 25 trending methodology to derive the 1980. estimate 28 of 63.16 percent and an estimated allocatio'n 27 Percentage for 1981 of 63.61 percent.
Similarly, i
28 for the Gas Department, the allocation percentages 2-2
i I
far 1980 and 1981 were derived by co=puting a 2
least square trend of the recorded allocation i
3 percentages for the years 1975 through 1979.
This 4
trend resulted in an allocation percentage to the 5
Gas Department in 1980 of 36.83 percent and in 6
1981 of 36.38 percent.
f 7
6.
Q.
Is the method of deriving custo=er accounting and i
8 collection expense allocation factors shown in i
1 9
Table 2-D the same method used by the Consission 10 and Co=pany in previous rate proceedings?
\\
- 1. !
A.
Yes, this method as first adopted by the Cen-e e
12 [
mission in Decision 62446 on Application 42887 13 of August 22, 1961, the Company's 1961 gas rate 14 case and it has been used ever since.
15 {
7.
Q.
Were the allocation factors derived in Table 2-D 16 L used to allocate customer accounting and col-I 17 [
1ection expenses for 1980 as expected and 1981 18 h Test Year for the various depart =ents in the i
19 Results of Operations Exhibits (SDG&E-3) and 20 (SDC&E-4)?
i b
21 A.
Yes.
~
22 8.
Q.
You indicated in Answer 4 that Account 904 was 23 not allocated; please explain how Account 904 was 24 estimated.
25 A.
The estimates of Account 904, Uncollectible Ac-S.
26 counts, were derived individually by depart =ent i
i 27 based on the expected revenue to be derived frc=
i 28 the sale of electricity, and natural gas.
l
!i e
2-3 i
i i
i
1 A.
Tables 2-B and 2-C detail the recorded customer 2
accounting and collection expenses charged to the 3
Electric Department and Gas Department for the 4
years 1975 through 1979 and estimated expenses for 5
1980 as expected, 1981 Test Year and 1981 Test 6
Year on a zero fuel basis.
7 10.
Q.
Please explain what the adjustment to Account 904 8
is between 1981 Test Year and 1981 Test Year on a 9
zero fuel basis as shown on Table 3 2-A, 2-B, and 10 2-C.
11 A.
1981 Test Year on a zero fuel basis excludes 12 uncollectible accounts resulting from fuel reve-13 nues which are not a part of base rates.
Uncol-14 lectible accounts applicable to ECAC and PGA rates 15 are recovered through those rate mechanisms.
l 16 11.
Q.
Does that conclude your Prepared Direct Testimony i
17 on this Chapter?
18 A.
Yes.
19 20 21 22 23 24 I
25 26 27 28
)
l 2-4 I
6
CHAPTER 2 ALLOCATION OF CUSTOMER ACCOUNTING AND COLLECTION EXPENSES LISTING OF TABLES TABLE TITLE Table 2-A CUSTOMER ACCOUNTING AND COLLECTION EXPENSES COMBINED DEPARTMENTS Table 2-B CUSTOMER ACCOUNTING AND COLLECTION EXPENSES ELECTRIC DEPARTMENT Table 2-C CUSTOMER ACCOUNTING AND COLLECTION EXPENSES GAS DEPARTMENT Table 2-D CALCPLATION OF PERCENTAGES USED l
OR TO BE USED TO ALLOCATE CUSTOMER l
ACCOUNTING AND COLLECTION EXPENSES 70R YEARS 1978, 1979, 1980 AND 1981 l
i h
TABLE 2-A CUSTOMER ACCOUNTING AND COLI.E(. TION EXPENSES COMBINED DEPARTMENTS (1housands of Dollarn)
ACCOUNT NUNSER TITIE RECORDED DATA 1975 1976 1977 1978 1979 (A)
(B)
(C)
(D)
(E)
(P)
(G) 1.
901 Supervision S
218 193 206 222 5
2 38 7
902 Meter Reading Expenses 1 600 1 796 1 983 2 304 2 589 3
903.1 Customer Records & Collection Expenses-Customer Services 2 329 2 617 3 274 3 346 3 967 4.
903.2 Customer Records & Collectic. Expenses-Credit Management 128 147 159 159 182 5.
903.3 Customer Records & Collection Expenses-Collections 1 106 1 072 1 156 1 244 1 325 6
903.4 Customer Records & Co!!ection Expenses-Customer Payments 602 669 716 761 788 7
903.5 Customer Records & Collection Expenses-N Silling & Bookkeegainq 815 934 947 971 1 093 8 4 903.6 Customer Records & Collection Expenses-
{
9.
Data Processing 1 533 1 912 1 891
- 1 982 1 776 903.7 Customer Records & Collectior. Expenses-Postage 856 1 132 1 127 1 244 1 423 13 904 Uncollectible Accounts C83 840 565
'672 1 099 11, 905 Miscellaneous Customer Accounts Expenses 36 41 41 42 35 12.
TOTAL (Including Steam Department)
$10 086
$11 353
$12 065
$12 947 514 515 7F M F3
-N t
O>
m N
M
i TABLE 2-A CUSTOMR ACCOUNTIpsC AleD COLLECTIOff EXPENSES COMBINED DEPARTMENTS (Thousands of Dollars)
ACCU"Y ""#E" TIT 2 AS EXPLCTED TEST YEAR TEs? ytane (H)
(1)
(J) 1.
901 Supervision 2.
902 Noter Reading Expenses 267 308 8
30 0 l
2 844 3 241 3 241 3.
903.1 Customer Records & Collection Expenses-Customer Services 4
903.2 Customer Records & Collection Expenses-4 293 4 331 4 331 p
Credit Management I
5.
903.3 197 227 227 y
Customer Records & Collection Expenses-Collections 1 464 1 660 1 660 y
6.
903.4 Customer Records & Collection Expenses-Customer Payments 7.
903.5 377 Customer Records & Collection Expenses-937 937 nilling & Bookkeeping 8.
903.6 Customer Records & Collection Expenses-1 205 1 3s1 1 331 Data Processing 9.
903.7 1 932 2 092 2 092 Customer Records & Collection Expenses-Postage 13 904 Unco 11ectible Acccants 1 444 2 068 2 068 1 472 1 819 629 11.
905 Miscellaneous Customer Accounts Eugwnses 40 47 47 i
12 TOTAL (Including Steam Department) to 4
$16 040
$ 18 661
$17 471
[h
- Eero Puel Basis en g*
rt tg NN I
O *>
I N
I
TABLE 2-B CUS1VMER ACCOUNTING AND COLLECTION EXPENSES ELECTRIC DEPARTMENT (Thousands of isoltars)
ACCOUNT NUMSER TITLE RECORDED DATA 1975 1976 1977 474 1979 (A)
(8)
(C)
(D)
(El (Ps (G) 1.
901 Supe rvision
$ 133
$ 118
$ 127
$ 138
$ 149 2.
902 Noter Readtng Expenses 976 1 101 1 225 1 635 1 624 3.
903.1 Customer Records & Collection Expenses-Customer Services 1 #10 1 604 2 021 2 084 2 400 4.
903.2 Customer Records & Collection Espensee-Credit Management 70 90 98 99 114 5.
903.3 Customer secords & Collection Expenses-Collections 675 657 714 175 831 6.
903.4 Custoamr becords & Collection Empenses-ga Customer Payments 367 410 442 474 494 s
I.
903.5 Customer Records & Collection Expenses-08 milling & Dookkeeping 497 573 585 605 6 86 j,
8-903.5 Customer Records & Collection Expenses-Data Processing 923 1 172 1 160 1 235 1 114 9.
903.7 Customer Records & Collection Expensas-Postage 522 694 696 775 992 10.
904 Unco 11ectible Accounts 700 660 495 6 32 902 II.
905 Miscellaneous Customer Accounts ExpenseF 22 25 25 26 22
- 12. TPTAL
$6 313
$ 7 104
$7 596
$5 175
$9 396 me
- r >
m os a ra et M e-* N I
O CD m
M
TABLE 2-8 CUSTosER ACCOUNTissG Apso COLLICTIcet EXPENSES ELECTRIC DEPARTMENT (Thousandn of Dollars) 1980 1981 1981 ACCOUte? NUpeBER TITLE AS EXPECTED TEST YEAR TEST YEAR *
(H)
(!)
(J) 1.
901 Supervision 160 196 19C 2.
902 steter Reading Expenses 1 796 2 062 2 062 3.
903.1 Custommer Pecords & Collection Expenses-Custoener Services 2 715 3 073 3 073 4.
903.2 Customer Pecords & Collection Expenses-Credit Management 125 144 144 N
5.
903.3 Customer Records & Collection Expenses-Collections 924 1 056 1 056 3
6.
903.4 Custommer Records & Collection Expenses-N CJstomer Payments 554 628 628 7.
903.5 Custommer Records & Collection Expenses-Billing & Bookkeeping 761 070 878 8.
903.6 Ct:stomer Records & Collection Expenses-Data Processing 1 220 1 330 1 330 9.
903.7 Cur *.omer Records & Collection Empenses-Postage 912 1 316 1 316 10.
904 Une111ectible Accounts 1 204 1 462 547 11, 905 M.. ellaneous Customer Accounts Expenses 26 30 30 i t.
TOTAL
$10 405
$12 175
$11 260 m *4
- 2ero ruel Basis
[$
.r r' tv1 NN O
O tp m
M
s.
TASLE 2-C CUSTOMER ACCOUNTING AND COLT.ECTION EXPENSES CAS DEPARTMENT (thousands of Dollars)
ACCOUNT NUMBER TITLE RECORDED DATA 1975 1976 IM7 1975 1977 (A)
(B)
(C)
(D)
(E)
(P)
(G) 1.
901 supervis t em 85 75 79 84 89 2.
902 Meter Reading Expenses 624 695 758 869 965 3.
903.1 Customer Records & Collection Expenses-Customer Services 908 1 012 1 252 1 261 1 478 4.
9/13.2 Customer Records & Collection Expenses-Credit N nagement 50 57 61 60 68 5.
903.J Customer Records & Collection Expenses-Collections 431 415 442 469 494 6.
903.4 Customer Records & Collection Expenses-Customer Payments 2 35 259 274 287 294 7.
903.5 Customer Records & Collection Expenses-w tilling & Bookkeeping 318 361 362 366 407 8
8 903.6 Customer Records & Collection Expenses-Q Data Processing 590 740 723 747 662 9.
903.7 Customer Records 6 Collection Expenses-Postage 334 438 431 469 5 30 10.
904 Uncollectible Accounts 183 ISO 70 40 117 11.
905 Miscellaneous Customer Accounts Expenses 14 16 16 16 13 12.
TOTA 1.
$3 772
$4 248
$4 468
$4 668
$5 117 r
En *-1
- r >
t9 os 19 Y ft tv3
- -* M 1
OO ew N
Muhm>
t TABLE 2-C CUSTOeER ACCOUNTING AND COLLECTION EXPENSES GAS DEPARTMENT (1housands of Dollars) 1900 1981 1981 ACCOU807 IfUngER TITLE
.AS EXPECTED TEST YEAR TEST YEAR *
(H)
(I)
(J) 1.
901 Supervision 98
$ 112
$ 112 2.
902 Meter Reading Expenses 1 047 1 179 1 179 3.
903.1 Customer Records & Collection Expenses-Customer Services 1 583 1 758 1 758 4.
903.2 Customer Recordr. & Collection Expenses-g Credit Management 73 83 83 5.
903.3 Customer Records & Collection Expenses-g O
Collections 539 604 604 8
6.
903.4 Customer Records & Collection Expenses-Customer Payments 323 359 359 7,
903.5 Customer Records & Collection Expenses-tilling & Bookkeeping 444 502 502 8.
993.6 Customer Records & Collection Expenses-Data Processing 711 761 761 9.
903.7 Customer Records & Collection Expenses-Pcstage 532 752 752 10.
904 Uccollectible Accounts 269 358 82 11.
905 Miscellaneous Customer Accounts I
Expenses 15 17 17 12.
TOTAL
$5 634
$6 485 56 209
- Iero ruel Basis to *4
[h ar et (M PJ N 1
OO N
I
TABLE 2-D CALCULATION OF PERCENTAGES USED OR TO BE NSED TO ALLOCATE CUSTOMER ACCOUNTING AND COLLECTION EXPENSES POR YEARS 1978, 1979, 1980 AND 1981 Line No.
Year 1978 Electric Gas Steam Tota.\\
(A)
(B)
(C)
D)
E)
F)'
1.
Total Customera (December 31, 1977) 682 946 461 956 63 1 144 965 2.
Add for special handling 80 609 219 63 80 891 3.
Total 763 555 462 175 126 1 225 856 4.
Percentage 62.29 37.70 0.01 100.00 Year 1979 5.
Total Customers (December 31, 1978) 716 927 477 383 64 1 194 374 E
6.
Add for special handling 86 796 s-7.
Total 220 64 87 080 803 723 477 603 128 1 281 454 8.
Percentage 62.72 37.27 0.01 100.00 Year 1980 9.
Percentage - Estimated 63.16 36.83 0.01 100.00 Year 1981 10.
Percentage - Estimated 63.61 36.38 0.01 100.00
$ E3 nm "j
OO w
1 CHAPTER 3 COMBINED DEPARTMENTS 2
ALLOCATION OF ADMINISTRATIVE AND GENERAL EXPENSES PREPARED DIRECT TESTIMONY OF FRANK H. AULT 3
4 1.
Q.
Mr. Ault, what is the purpose of your testimony 5
before the Commission in this proceeding?
6 A.
I am sponsoring Chapter 3 of this exhibit re-7 garding the allocation of administrative and 8
general expenses.
9 2.
Q.
Would you briefly explain the type of expenses 10 included in administrative and general expenses 11 and to which accounts these expenses are charged?
12 A.
The Company's administrative and general expenses 13 include such items as salaries and expenses of 14 general officers and general office employees, 15 directors' fees, regulatory commission expenses, printing and stationery, other office supplies, 16 i
17 legal and audit expenses, pension, life and health 18 insurance and other employee benefits.
It also 19 includes franchise fees and the cost of insurance, 20 injuries and damages.
These expenses are recorded 21 in Accounts 920 through 932.
22 3.
Q.
What is shown on Table 3-A?
23 A.
Table 3-A shows recorded administrative and general 24 expenses on a Combined Department basis for the l
25 years 1975 through 1979.
The table also shows 23 these expenses on a Combined Department basis for 27 1980 as expected, 1981 Test Year, and 1981 Test 28 Year on a zero fuel basis.
3-1
l 1
4.
Q.
Are some of the administrative and general ex-2 penses allocated to specific departments?
3 A.
Yes.
Portiens of the administrative and general 4
expenses are related to specific operations.
5 Accordingly, such expenses are charged directly to 6
one or more of the company's departments, as 7
appropritte.
Many of the expenses, however, are i
8 so general that they must be prorated to all 9
operating departments.
Those which are allocated 10 are based on the average of the four factors shown 11 in Tables 3-D and 3-E for the recorded years 1978 12 and 1979.
13 5.
Q.
Is this four factor method the same method used by 14 the Commission and the company for allocating 15 administrative and general apenses in previous l
16 rate proceedings?
17 A.'
Yes.
It is widely accepted.
I 18 6.
Q.
How were the administrative and general expense 19 allocation percentages for 1980 and 1981 derived?
20 A.
Table 3-F shows the recorded allocation per-21 t
centages by department for the years 1975 through i
l 22 1979.
The estimated percentages for 1980 and 1981 23 were derived by a least square trend of the re-24 corded figures for 1975 through 1979.
25 7.
Q.
Were the allocation factors derived in Table 3-F l
26 used to allicate administrative and general ex-27 penses for 1980 as expected and the 1981 Test Year
)
28 to the various-departments in the Results of l'
- 3-2
(
1 Operations Exhibits (SDG&E-3) and 2,
(SDG&E-4)?
I A.
Yes.
3 l
4 8.
Q.
What is s.Jwn on Tables 3-B and 3-C?
5 A.
Tabler 3-B and 3-C show recorded administrative 6
and 3;neral expenses charged to the Electric 7
Department and Gas Department for the years 1975 8
through 1979 and estimated expenses for 1980 as 9
expected, 1981 Test Year, and 1981 Test Year on a 10 zero fuel basis.
11 9.
Q.
Please explain what the adjustment to Account 927 12 is be' tween 1981 Test Year and 1981 Test Year on a I
zero !uel basis as shown on Tables 3-A, 3-B and 3-C.
f 13 14 A.
1981 Test Year on a zero fuel basis excludes 15 franchise fees resulting from revenues which are i'
16 not a part of base rates.
Franchise fees ap-17 Plicable to ECAC and PGA rates are recovered 18 through those rate mechanisms.
l 19 10.
Q.
Does that conclude your Prepared Direct Testimony
(
20 on this Chapter?
21 A.
Yes.
l 22 23 24 25 26 27 28 3-3
CHAPTER 3 ALLOCATION )F ADMINISTRATIVE AND GENE '.AL EXPENSES LISTING OF TABLES TABLE TITLE Table 3-A ADMINISTRATIVE AND GENERAL EXPENSES COMBINED DEPARTMENTS Table 3-B ADMINISTRATIVE AND GENERAL EXPENSES ELECTRIC DEPARTMENT Table 3-C ADMINISTRATIVE AND GENERAL EXPENSES GAS DEPARTMENT
-Table 3-D DERIVATION OF PRORATION PERCENTAGES FOR APPORTIONMENT OF ADMINISTRATIVE AND GENERAL EXPENSES FOR YEAR 1978 Table 3-E DERIVATION OF PR0 RATION PERCENTAGES FOR APPORTIONMENT OF ADMINISTRATIVE AND GENERAL l
EXPENSES FOR YEAR 1979 Table 3-F PERCENTAGES FOR APPORTI')NMENT OF ADMINISTR/TIVE AND GENERAL EXPENSES FOA xEARS 1975, 1976, l
^
1977, 1978, 1979, 1980 AND 1981 l
l
4 FABLE 3-A ADMINISTRATIVE' AND GENERAL EXPENSES COMBINE') DEPARTMENTS (Thouse ids of Dollars)
ACC00NT NUMBER TITLE RECORDED DATA 1975 1976 1911 1978 1979 (A)
(8)
(C)
(D)
(El (F)
(G) 1.
920 Administrative and General Salaries 8 5 638 5 6 270
$ 7 351 3 8 701
$11 254 2.
921 Office Supplies 6 Expenses 2 369 2 976 4 065 5 572 6 588 3.
922 Administrative Empenses Transferred-Credit 4 363 4 727 5 629 7 430 9 494 4.
923 Outside Services Dmployed 649 707 746 1 004 1 114 5.
924 Prog.erty :nsurance 556 1 026 1 169 1 392 1 895 6
925 Injuries and Damages 870 902 994 1 149 1 170 7.
926 Employee Pensions and Renefits 7 399 8 792 10 701 12 129 14 039
[
S.
927 Franchise Requirements 7 639 9 104 10 049 11 936 13 953
$f 1
928 Regulatory Commission Expense 751 460 623 729 394
"" 10, 929 Duplicate Charges-Credit 532 640 662 861 1 025 11, 9 30 Miscellaneous General Expenses 2 762 3 386 5 081 4 643 3 773 17 9 31 Rents 516 1 092 1 044 905 1 100 11 932 Maintenance of General Plant 1 034 1 013 1 000 1 018 1 426 I'. TOT 7*
(Including Steam Department) 525 288
$30 449
$36 540
$41 127
$46 107 M ai
- r >
m os G r*
rt r:1 wu I
0 >=
m PJ
?
TABLE 3-A ADMINISTRATIVE AND GENERAL EXPENSES COMBINED DEPARTMENTS (Thousands of Dollars) 1580 1981 1981 TITLE AS EXPE_CTED TES_T YEAR TEST YEAR
- ACCOUNT NUMnER (H)
(Il (J )
1.
920 Administrative and General Salaries
$13 995
$16 559
$16 559 2.
921 office Supplies & Expenses 8 298 9 617 9 617 3.
922 Administrative Espenses Transferred-Credit 9 592 11 206 11 206 4.
923 Outside Services amploysto 1 451 1 384 1 384 2 031 2 437 2 437 Y
5.
924 Property Insurance 925 Injuries and Damages 1 450 1 599 1 599 I
- 6.
7.
926 Deployee Pensions and Benefits 16 314 18 832 16 832 8,
927 Franchise Requirements 19 955 24 733 6 758 9.
929 Regulatory Commission Expense 596 608 608 10.
929 Duplicate Charges-Credit 1 169 1 310 1 310 11.
930 Miscellaneous General Expenses 6 158 7 514 7 514 1 145 1 148 1 148 12.
931 Rerit s 13.
932 Maintenance of General Plant 1 548 1 718 1 718 562 leo
$73 633
$55 658 in d 15.
TOTAL.
(Including Steam Department)
- f >
- Zero Fuel Basis (Except Steam Department) fD tp (D t*
ft (T1 N t.a 4
0>
m N
TABLE 7-5 ADMINISTRA?!V'; AND GENERAL EXPENSES ELECfRIC DEPA m r.NT (Thous...de of Dollars)
ACCOUNT NUMSER TITt2 1975 1976 ~_
SECORDEU DATA (A)
(8)
(C)
(D)
(E)
(r)
(G) 1977 1978 1979 1.
920 Administrative and General Salaries S 4 049
$ 4 505
$ 5 418 5 6 507 8 e 462 2.
921 Office Supplies & Expenses 1 713 2 179 3 015 4 133 5 012 3.
922 Administrative Expenses Transferred-Credit 2 982 3 212 3 929 5 279 6 970 A.
923 Outside Services Employed 436 477 524 846 569 5.
924 Property Insurance 502 964 1 095 1 323 1 *19 6
915 Injuries and Damages 629 128 760 883 919 7
926 Employee Pensions and Benefits 4 967 5 967 7 290 8 432 10 107 S.
927 Franchise pequirements 5 513 7 054 7 570 9 7d6 10 782 jf 9.
928 Regulatory Commission Expense 403 230 302 350 156
"" 10, 929 Duplicate Charges-Credit 532 640 662 861 1 025 11.
930 Miscellaneous General Expenses 2 096 2 647 4 151 3 965 3 085 12.
931 Rents 368 000 757 732 034 13 9 32 Maintenance of General Plant 624 620 654 685 997
- 14. TOTAL 517 756 622 258
$26 945
$31 052 535 047 In H
- r >
m ca 4 r*
r7 tr3 e-* La l
O Os PJ
TA8LF. 3-B ADMINISTRATIVE Ale 0 cEWEMAL EXPENSES ELECTRIC DEPARTMENT (Thousands of Dollars) 1980 1981 gggt ACCOUNT NUMBER TITLE AS EXPECTED TEST YEAR Tggy yggpe (H)
(I)
(J) 1 920 Administrative and General Salaries
$10 613
$12 733
$12 733 2.
921 office Supplies & Expenses 6 370 7 4t3 7 483 3.
922 Administrative Expenses Transferred-Credit 7 085 8 406 8 406 4,
923 Outside Services amployed 1 108 1 069 1 069 Y
5.
924 Property Insurance 1 951 2 350 2 350 6.
925 Injuries and Damages 1 146 1 273 1 273 N
7.
926 Employee Pensions and Benefits 11 810 13 850 13 850 8
927 Franchise Requirements 15 648 19 003 5 414 9
928 Regulatory Comunission Exrsnse 315 324 324 10 929 Duplicate Charges-Credit 1 169 1 310 1 310 11.
930 Miscellaneous ceneral Expenses 5 502 6 853 6 853 12.
931 Rents 876 890 890 13.
9 32 Maintenance of General Plant 1 093 1 227 1 227
- 14. TOTAL
$48 178
$57 339
$43 750 tn *-1
- zero ruel Basis 2>gy
,, m N LJ B
O tzs e+i N
4.
TABLE 3-C ADMINISTRATIVE AND 6A ERAI,E'XPENSES CAS DEPAb....*MF (Thousando of Dolears)
ACCOUNT NUMBER TIT 1.g RECORDED DATA 1975 1976 1977 1975~~ _
1979 (Al (t)
(C)
(D)
(El (F)
(G) 1.
120 Administrative and General salaries
$1 611
$1 764 31 923
$ 2 263
$ 2 778 2.
921 office Supplies & Expenses 653 794 1 044 1 Je2 1 568 3.
922 Administrative Expenses Transferred-Credit 1 373 1 446 1 690 2 135 2 511 4
923 Outside Services employed 212 229 221 237 244 5.
924 Property Insurance 54 62 73 67 73 6
925 Injuries and Damages 238 251 232 263 249 7.
926 Employee' rensions and Benefits 2 416 2 805 3 390 3 673 3 910 8.
927 Franchise pequirements 2 112 2 034 2 464 2 626 3 150 if 9.
920 Regulatory Commission Expense 346 229 320 370 230
$I 10.
929 Duplicate Charges-Credit
"" 11.
9 30 Miscellaneous General Expenses 663 736 926 675 685 12.
931 Rents 147 290 285 252 265 13.
912 Maintenance of ceneral Plant 407 392 353 332 427
- 14. TOTAL
$7 400
$5 140 59 541
$10 010
$11 076 Cn H
- r >
Q C3 O r*
rt M e-= L.s 1
0 C) m h3
J TABLE 3-D DERIVATION OF PRORATION PERCENTAGES FOR APPORTIONMENT OF ADMINISTRATIVE AND GENERAL EXPENSES FOR YEAR 1978
(%ousands of Dollars)
Line Electric Gas Steam Total No.
Description Department Department Department Departments (A)
(B)
(C)
(D)
(E)
(F) 1.
Operating and maintenance cypenses less uncollectibles and adminis-trative and general expenses
$251 891
$ 60 317 712 S
312 920 2.
Per Cent 80.50 19.27 0.23 100.00 3.
Not plant less intangibles plus complete CWIP
$842 927
$199 884
$1 256
$1 044 067 W
E 4.
Per Cent 80.74 19.14 0.12 100.00 5.
Operating payroll less administra-tive and general expenses and plant construction weekly S 24 917
$ 10 821 S
71 S
35 809 6.
Per Cent 69.58 30.22 0.20 100.00 7.
Number of customers as of December 31, 1977 602 946 461 956 63 1 144 965 8.
Per Cent 59.65 40.34 0.01 100.00 9.
Sum of percentages 290.47 108.97 0.56 400.00 10.
Average of percentages 72.62 27.24 0.14 100.00$Y
- n
- n,
TABLE 3-C ADMINISTRATIVE AND GENERAL EXPENSES CAS DEPARTMENT 8
(Thousands of Dollars) 1980 1981 ACCOUt*T NUMBER TITLE AS EMPt:CTED TEST YEAR gggg yggy yggge (H) ill r
(J )
1.
920 Administrative and Ceneral Salaries 3 3 367 5 3 811 5 3 all 2
921 office Supp!!es & Expenses 1 919 2 125 2 125 3.
922 Administrative Expenses Transferred-Credit 2 495 2 700 2 700 4
923 Outside Services Dnployed 342 313 313 5.
924 Property Insurance 77 e3 e3 Y
6 925 Injuries and Damages 301 323 323 7
926 Employee Pensions and Benefits 4 402 4 961 4 961 8.
927 Franchise pequirements 4 231 5 697 1 311 9.
928 Regulatory Commission Expense 200 283 283 10 929 Duplicate Charges-Credit 11 930 Miscellaneous General Expenses 653 659 659 12 931 Rents 260 257 257 13.
9 32 Maintenance of General Plant 454 489 409
- 14. TOTAL
$13 929
$16 213
$11 827
- Zero Fuel Bane n (A H.
- r ;t (D tu (D t*
rt (9 N ta i
OO eti N
C
TABLE 3-E DERIVATION OF PRORATION PERCENTAGES FOR APPORTIONMENT OF ADMINISTRATIVE AND GENERAL EXPENSES FOR YEAR 1979
, (Thousands of Dollars)
Line Electric Gas Steam Total No.
Description Department Department Deparcment Departments
( A)__
(B)
(C)
(D)
(C)
(F) 1.
Operating and maintenance expenses less uncollectibles and adminis-trative and general expenses
$325 824
$ 59 797
$1 094 386 715 2.
Per Cent 84.26 15.46 0.28 100.00 3.
Not plant less intangibles plus complete CWIP 943 742 211 716 1 273 1 156 731 4.
Per Cent 81.59 18.30 0.11 100.00 5.
Operating payroll less administra-tive and general expenses and plant construction weekly 30 256 11 705 65 42 026 6.
Per Cent 71.99 27.85 0.16 100.00 7.
Number of customers as of December 31, 1978 716 927 477 383 64 1 194 374 8.
Per Cent 60.03 39.97 100.00 9.
Sum of percentages 297.87 101.58 0.55 400.00 10.
Average of percentages 74.47 25.40 0.13 100.00
$Y
- 8 nm wu N,
W
- - - - - - - - - - - - - - - - - - - - - - - ~
- - - ~ ~ '
~
TABLE 3-F PERCENTAGES FOR APPORTIONMENT OF ADMINISTRATIVE AND GENERAL EXPENSES FOR YEARS 1975, 1976, 1977, 1978, 1979, 1980 AND 1981 LINE i
NO.
Electric Gas Steam Total Description Department Department Department Departments
( A)
(B )
(O (D )
(E )
(F )
1 Average of proration per-centages 1975 69.78 30.06 0.16 100.00 2.
Average of proration per-centages 1976 70.80 29.04 0.16 100.00 y
3.
Average of proration per-m centages 1977 71.79 28.06 0.15 100.00 4.
Average of proration per-centages 1978 72.62 27.24 0.14 100.00 5.
Average of proration per-centages 1979 74.47 25.40 0.13 100.00 6.
1980 - Estimate 75.25 24.63 0.12 100.00 7.
1981 - Estimate 76.37 23.52 0.11 100.00
$!d 4
as am e=* t.h
- n
=
L
1 CHAPTER 4 COMBINED DEPARTMENTS 2
ALLOCATION OF DEPRECIATION RESERVES AND EXPENSES FOR COMMON UTILITY PLANT 3
PREPARED DIRECT TESTIMONY OF ALAN G. STRACHAN 4
1.
Q.
Mr. Strachan, what is the purpose of your testimony 3
before the Commission in this proceeding?
6 A.
I am sponsoring Chapter 4 of this exhibit regarding 7
the allocation of depreciation reserves and expenses 8
for Common Utility Plant.
g 2.
Q.
What is Common Plant?
10 A.
Common Plant consists of land, structures and 11 equipment used jointly by several departments of 12 the Company.
Costs asscciated with this plant are 13 then allocated to these departments.
The alloca-14 tion is accomplished by factors based on a detailed 15 analysis of usage by each operating department of 16 the facilities in each Common Plant Account.
17 3.
Q.
What are the allocation factors?
18 A.
The Electric Department is assigned 72.47 per-19 cent, and the Gas Department is assigned 27.34 20 percent. The remaining 0.19 percent is allocated 21 to the Steam Department which is not involved in 22 this proceeding.
23 4.
Q.
How are the depreciation calculations made for 24 Common Plant?
25 A.
They are made on a straight-line remaining life 26 basis.
27 5.
Q.
What do Tables 4-A and 4-B show?
28 A.
Table 4-A shows the allocation of depreciation 4-1
I expense for recorded years 1975 through 1979 and 2
the estimated allocation for 1980 aad 1981.
3 The 1919, 1980 and 1981 accruals were developed 4
on depreciation rates approved in Decision 90405, 5
issued on June 5, 1979.
6 Table 4-B shows, for the same period as Table 7
4-A, the year-end depreciation reserve accrued on 8
Common Plant.
These tables include the accrued g
reserve for Transportation and Power Operated 10 Equipment.
The associated depreciation expense on 11 this equipment does not appear in this chapter.
12 It is calculated on each piece of equipment using 13 the straight-line method.
This depreciation 14 expense is then charged through clearing accounts, 15 by hourly rates for use of the equipment.
16 6.
Q.
What does Table 4-C show?
17 A.
Table 4-C shows the derivation of the factors used 18 for the years 1977 through 1981 to allocate 19 Common Utility Plant to the Electric,. Gas and 20 steam Departments.
In order to develop the alloca-l 21 tion factors shown at the bottom of the page, a
22 detailed analysis of the usage by each department l
23 of the facilities in each Common Plant account was 24 made.
The analysis shown in Table 4-C was made 25 in 1976.
26 7.
Q.
Does that conclude your Prepared Direct Testimony 27 on this Chapter?
28 A.
Yes.
4-2
1 CHAPTER 4 ALLO. CATION OF DEPRECIATION RESERVE AND EXPENSE FOR COMMON UTILITY PLANT LISTING OF TABLES TABLE TITLE Table 4-A ALLOCATION TO DEPARTMENTS OF DEPRECIATION EXPENSE RELATING TO COMMON UTILITY PLANT Table 4-B ALLOCATION TO DEPARTMENTS OF DEPRECIATION RESERVE RELATING TO COMMON UTILITY PLANT Table 4-C DERIVATION OF COMMON ALLOCATION FACTORS
TABI.E 4-A ALIACATION TO del + ATNENTS OF DEPRECIATION EXPENSE RELATING 70 Colet0N UTILITY PLANT (Thousands of Dollars)
LINE NO.
DESCRIPTION RECORDED DATA 1973 1976 1977 1975 1979~~
(A)
(B)
(C)
(D)
(E) fr)
(C) 1.
Electric Proration Percentage 70.31
' 70.31 72.47 72.47 72.47 Depreciation I:spense 474 378 401 427 476
'2.
Ces p
I
>=
Proration Percentage 29.48 29.48 27.34 27.34 27.34 i
Depreciation Expense 199 159 152 161 179 3.
Steam Proration Percentage 0.21 0.21 0.I9 0.19 0.19 Depreciation Espense 2
1 1
1 1
4 Total Common Utility Plant Empense 675 538 554 589 656
=r >
o us O r*
rv tvt
~V I
O >*
m
>J B
mA.
K a
TABLE 4-A ALLOCATION TO DEPARTMENTS OF DEPRECI ATION EXPENSE RELATING TO COMMON UTILITY PLANT (Thousands of Dollars) 1980 1981 1981 LINE HO.
DESCRIPTION A", EXPECTED TEST YEAR AT PROPOSED RATES (H)
(1)
(J )
1.
Electric Proration Percentage 72.47 72.47 72.47 Depreciation Expense 586 699 699 9
h
~2.
Gas l-N Proration Percentage 27.3%
27 34 27.34 Depreciation Expense 221 264 264 3.
St. a Proration Percentage 0.19 0.19 0.19 Depreciation Expena,e 2
2 2
4 Total Comunon Utility Plant Expenr.e 809 965 965 tn d
- r >
m to
@ t*
rt tut Me I
O>
m N
e n
Tans.t. 4-n AI.lK ATION TO DF.PARTMENTS OF DEPRECIATION RESERVE REl.ATING TO C00m0N UTil.lTY PLANT (Thousands of Dollars)
LINE NO, DESCRIPTION REC 0ADED DATA 1975 1976 1977 1978 IT7 I (A)
(5)
(C)
(D)
(E)
(F)
(G) 1.
Electric Proration Percentage 70.31 70.31 72.47 72.47 72.47 Depreciation Reserve 7.154 7.434 5.374 3.426 5.688 i
2.
Cas tng Proration Percentage 29.48 29.48 27.34 27.34 27.34 Depreciation Reserve 3.000 3.117 2.027 2.047 2.146 3.
Steam Proration Percentage 0.21 0.21 0.19 0.19 0.19 Depreciation Peserve 21 22 14 14 15 4
Tot al Cossmon lit t li t y Plant Reserve 10.175 10.573 7.415 7.487 7.849 (n H
- r >
(5 to
'D V rt tg
~ C' I
O Cp M
PJ
9 TABLE 4-B ALLOCATION TO DEPARTNENTS OP DEFRECIATION RESERVE RELATING TO COMMON UTILITY PLANT (Thousands of Dollars) 1980 1981 1981 LINE NO.
DESCRIPTION AS EXPECTED TEST YEAR AT PROPOSED RATES (H)
(I)
(J )
1.
Electric Proration Percentage 72.47 72.47 72.47 g
Depreciation Reserve 6.399 7.065 7.065 d
2.
Gas
. I N
Proration Percentage 27.3%
27.3%
27 34 Depreciation Reserve 1
2.414 2,665 2,665 3.
Steam Proration Percentage 0.19 0.19 0.19 I
Depreciation Reserve 17 19 19 l
4 Total Commen Utility Plant Reserve 8,830 9,749 9,749 fn *-1
- r >
m tas OM rt M NP 1
O Os Pts N
l
9 TABLE 4-C Sheet 1 of 1 TABLE k-C DERIVATION OF COMMON ALLOCATICN FAC'IORS (THOUSANDS OF DOLLARS)
Derived Allocation l
Conson Account Electric Gas Steam Total 389.1 kna 1,270.7 6k9 7 3.8 1,92k.2 389 2 Land Rights 1.1
.1 1.2 390 Structures & Innrovements k,hk7.2 2,116.2 11 9 6,575 3 391 Office Furniture & Equip.
1,815 9 71k.9 4.7 2,535 5 392.1 Transportation Eq.-Autos 2,35'.o 1,228.7 15 0 3,599 7 392.2 Transportation Eq.-Trailers 413.0 131.8
.1 5kk.9 393 Stores I ment 228.0 45.1 3
273.k 394.1 Portable Tools 433 3 106.o 7
540.0 394.2 Shop Equipment 181 5 71.6 253.1 S94.3 Garage Equipment 248.4 8k.5 9
333.8 395 Laboratery Equipment 42.4 7.8
.1 50.3 396 Power-0;erated Equipment 2,719.7 k73.4 5
3,193.6 397 Cm-mit atica Equipment 1,858.8 45k.8 23 2,315 9 398 MiscellaN ous Equipment 480.0 138.9 1.6 620.5 Total Allocated Common Accounts 16,k96.0 6,223 5 kl.9 22,761.4 f
(
Composite Allocation %
T2.47 27.34
.19 i
The totals in the table above are as of 12-31-75, adjusted to exclude facilities i
removed from utility use. Individual account totals were allocated to departments using various allocation methods.
I I
~
c 4-C-1 l
l
1 CHAPTER S COMBINED DEPARTMENTS 2
SUMMARY
OF EARNINGS PREPARED DIRECT TESTIMONY OF PAUL A. WILLIAMS II 3
4 1.
Q.
Mr. Williams, what is the purpose of your testimony 5
in this proceeding?
6 A.
I am sponsoring Chapter 5 of this exhibit regarding 7
summary of earnings.
The components of the figures 8
in this Chapter will be discussed in greater 9
detail by subsequent witnesses in their respective 10 areas of expertise.
In addition, I intend to 11 discuss the major economic assumptions underlying 12 the estimates.
13 2.
Q.
Please describe the tables included in the Chapter.
14 A.
Historical data for the years 1975, 1976, 1977, 15 1978 and 1979 and projected data for 1980 and 1981 l
16 Combined Departments are depicted in Table 5-A.
17 Combined Departments for this proceeding consist
~
18 of the Electric and Gas Departments.
In order to 19 expedite the proceeding, no request for a steam 20 Department rate increase has.been made and, therefore, 21 the Steam Department results have been excluded 22 from these tables.
Table S-B displays recorded 23 and projected data for the Electric Department, 24 while Table 5-C shows similar data for the Gas 25 Department.
26 The three tables, 5-A, 5-B and 5-C are construc-27 ted using the same format.
Recorded data is 28 listed on sheet 1.
Referring to sheet 2, columns 5-1
l 1
H and I, 1980 as expected and 1981 Test Year at 2
Present rates, respectively, include fuel expenses.
3 Column J also represents 1981 Tes: Year at present 4
rates, but it has been adjusted to a zero fuel 5
basis.
The Test Year at proposed ratea, column K, 6
is also depicted on a zero fuel basis.
7 3.
Q.
Please discuss the adjustments made to exclude 8
fuel-related items.
9 A.
Adjustments have been made to both the Electric 10 Department and the Gas Department to exclude all 11 fuel-related revenues and expenses which are 12 treated in separate filings before the Commission.
l 13 These adjustments would, of course, carry over 14 into Combined Department results.
In the operating 15 revenue section of Table 5-A, sales to customers 16 (line 1), interdepartmental'(line 2), PGA and SAM 17 adjustment (line 4), and ECAC adjustment (line 5) 18 are all affected by the zero base fuel adjustment.
l 19 Fuel expense, shown in line 7, has also been 20 adjusted.
Customer accounting and collection 21 expenses (line 12), and administrative and general 22 expenses (line 14), are adjusted commensurately 23 because uncollectible and franchise fees are a 24 function of grost revenues.
l 25 4.
Q.
Do any of these adjustments affect the overall i
26 rate of return shown on line 24 of Table 5-A?
l 27 A.
No, they do not.
1 28 l.
5-2
e l
i 1
5.
Q.
What are the major economic assumptions underlying 2
the estimated data?
3 A.
For 1980 and 1981, the Consumer Price Index (CPI) 4 is assumed to be 10.0 percent and 9.0 percent, 5
respectively.
The Producer Price Index (PPI) is 6
estimated to be 10.0 percent in 1980 and 10.0 l
7 percent again in 1981.
The Company subscribes to l
8 a well-known econometric forecasting service 9
provided by Data Resources, Inc. (DRI).
DRI 10 publishes a monthly review of the United States 11 economy which contains, among other things, fore-12 casts of basic economic parameters such as the 13 CPI, PPI, etc.
The.DRI forecast published in 14 November, 1979, was utilized for the Company's 15 estimates.
I 16 6.
Q.
What are the wage increase assumptions in the i
17 f Company estimates, and when are they assumed to l
18 become effective?
I l
[
19 l
The internal labor increase for 1980 is 9.5 percent A.
20 which has been ratified by the Union and imple-I 21 mented by the Company. *The labor increase for 22 1981 is assumed te he 13.5 percent which repre-23 sents the impact of an effer made by the Company, 24 but not yet accepted by the Union.
25 The wage increase for 1980 is assumed to be l
l i.
26 effective on February 1, and for 1981 is assumed j
27 to be effective March 1, since the Company will be j
(
28 filing a 1982 Test Year also.
These dates coin-
~ 5-3
I I
cide with the expiration date of our contract with 2
the Union.
3 7.
Q.
Please discuss the basis for the revenue forecast.
4 A.
Revenues, excluding those revenues: directly related 5
to fuel, are predicated upon rates in ffe-t -a 6
June 10, 1979, as provided for in the Commission's 7
Decision 90405 of June 5, 1979.
8 8.
Q.
Are the rate base figures included in Tables 5-A, 9
5-B and 5-C computed on a weighted average basis?.
10 A.
Yes.
11 9.
Q.
Please identify the rate increases requested by 12 the various departments.
13 A.
The total increase in base rates requested in this 14 proceeding is $144,810,000.
$126,630,000 of the increase is attributed to the Electric Department, 15 16 while $18,180,000 relates to the Gas Department.
17 10.
Q.
Please describe, in general, the methodology used 18 to derive these rate increase requests.
19 A.
Based upon the projected data for the Test Year at i
20 present rates, shown in Table 5-A, column J, 21 revenues were increased by the Consolidated 22 Finance Model to generate a 14.50 percent rate-l 23 making return on equity for the 1981 Test Year.
24 The 14.50 percent return on common equity equates 25 to an 11.44 percent return on rate base (column X, 26 line 24), as discussed in the Cost of Capital 27 Exhibit (SDG&E-1).
The total rate increase 28 was a' located to the departments on the basis of a 5-4
s I
uniform rate of return.
This process also reflects 2
appropriate increases in expenses for uncollect-3 ibles, franchise fees and income taxes.
Any 4
decrease in these rate increase requests would 5
cause the Company to fall short of the 11.44 6
percent rate of return, and its previously author-7 ized 14.50 percent return on common equity.
8 11.
Q.
Mr. Williams, are there any methodological changes 9
from Decision 90405 included in this Application?
10 A.
No.
Major changes in methodology were excluded 11 from the filing in order to expedite authorization 12 of rate relief by January 1, 1981.
For the same l
13 reason, the cost of equity capital was left un-14 changed at its previous level of 14.50 percent.
i 12.
Q.
Does that conclude your Prepared Direct Testimony 15 j
16 on this Chapter?
17 A.
Yes.
I 18 19 t
20 j
1 21 22 i'
23 24 I
1 25 I
l 26 l
27 i
28 i
i 5-5 I
l
.{.
,5 t
?
I CHAPTER 5
SUMMARY
OF EARNINGS i
i
'l 4
t LISTING OF TABLES 4
4 TABLE TITLE t
Table 5-A
SUMMARY
OF EARNINGS - COM3INED DEPARTMENTS Table 5-B
SUMMARY
OF EARNINGS - ELECTRIO DEPARTMENT Table 5-C
SUMMARY
OF EARNINGS - GAS DEPARTMENT 4
P e
. +
-a
a t
TABLE 5-A
- SUtelARY OF EARNINGS COMRillED DEPAR11tEllTS III (Thousands of Dollars)
LINE RECORDED DATA NO.
TITLE 1975 1976 1977 1978 1979 (A)
(B)
(C)
(D)
(E)
(F)
(G)
Operatina Revenues 1.
Sales to Customers
$371,687.9
$458,209.3
$488,099.1
$587,845.9
$691,344.2 2.
Interdepartmental 14,615.3 19.756.2 38,548.2 55,687.8 85,516.1 3.
Miscellaneous 1,858.4 (1,150.2) 1,494.2 1,621.6 9,514.9 4.
PGA and SAH Adjustment (3,130.1) 2,459.0 610.5
.3.254.6) 5.
ECAC Adjustment (I2,522.6) 27,561.9 6.
Property Tax Adjustment 7.
Total Operating Revenues
$15hlM3
$461 162.6
$530$600.5
$6 112b4)
$8 E
operatina Expenses 8.
Fueltz) 221,959.1 249.516.4 326,479.7 362,023.8 486,933.6
'N 9.
Cas Storage 625.7 617.3 734.1 930.6 1,775.6 10.
Other Production 12,381.4 11,295.9 (14,831.7) 35,436.1 40.564.1,
11.
Transmission 5,458.8 5,071.0 5,801.3 5,877.6 7,615.2 12.
Distribution 17.518.0 17,987.3 19,028.2.
22,192.9 26.041.5 t,
a 13.
Customer Accounting & Collection 10,084.7 11,351.5 12.064.0 12,946.2 14.513.3 14.
Marketing 1,373.6 1,784.3 2,046.2 2,574.8 4,178.5 l
15.
Administrative & General 25.244.4 30 398.3 36 486.6 41 061.9 46 123.2 16.
Subtotal
$294,646.3 ST28N2E6
$1BM87
$4BMD
$627D455 17.
Depreciation & Amortization 28,844.1 30,233.8 33,703.2 37,946.0 47,557.7 Taxes
~
18.
KJ Va1 tre 14,999.4 18,001.0 19,469.6 16,529.0 13,143.3 9
19.
IncometJ7 2,193.0 19,414.0 5,707.0 12,388.0 12,395.0 20.
Payroll and Hiscellaneous 1 705.8 1 971.7
~ 2 147.5 2 343.0 3 020.4 21.
' Total Taxes
$MYB7
$~19DBE7
$27D747 T3d607
$~7BI5C 22.
Total Operating Empenses SIET7IBITE
$397.642.5
$448.835.7
$552.249.9
$703.861.4 23.
Het Operating income
$ 45,773.0
$ 63,520.1
$ 81,764.8
$ 92,392.5
$ 96,976.0 24 Weighted Average Rate Base
$747,377.0
$ 79 3,983. 0
$833,135.8
$944,364.9 $1.081,435.1 en H 25.
Rate of Return (%)
6.1{g 8 003 9.81%
9.78*
d.97%
gr >
(1) Excludes Steam Department. Adjustmentsmadetobothexpensesandnevenuesforbalancingaccountunder/overcollections$h$
in 19 75-1978. Adjustments made to revenues for balancing account under/over collections in 1979.
(2) Includes cost of GN-5 gas.
(3) Income taxes adjusted for ratemaking methodology.
"" 'f o>
tw b.)
~
4 TA8tE 5-A StM MRY OF EARNINGS. COMBINED DEPAR1NENTSIII (1housands of Dollars)
LINE 1980 1981-1981 1981 I2)
- AT PROPOSED RATESI2)
NO.
TITLE AS EXPECTED TEST YEAR TEST YEAR (10 (W -
(J)
(K)
Operatina Revenues 1.
Sales to Customerg3)
$ 993,302
$1,216,063
$ 325,069
$ 458,692 2.
Interdepartmental 139,432 102,259 5,676 16,451863 3.
Miscellaneous 8,860 8,451 8,451 8
4 PGA & SAM Adjustment 11,355 (5,518) 5.
ECAC Adjustment (21d19)
(26,550) 6.
Total Operating Revenues
$1,131,230
$1,294.705
$ 339,196
$ 484,006 Operatina Expenses
""""~
7.
Fuel (3) 783,629 947,029 13,141 13,141 8.
Gas Storage 1,896 2,088 2,088 2,088 9.
Other Production 43,996 52,226 49,770 49.770 10.
Transmission 8,834 10,470 10,470 10.470 u
11.
Distribution 30,304 36,586 36,586 36,586 8
12.
Customer Accosmting & Collection 16,039 18,660 17,470 17,687 T
13.
Marketing 10,679 19,235 19,235 19,235 w
14.
Administrative & General 62,107 73 551 55 576 58 48 20T!%d 15.
Subtotal 5 957.4B4 ST 159,,N45 5~~20dh.
5 16.
Depreciation & Amortization 53,721 58,617 58,617 58,617 Taxes 17.
ATValorem 13.539 14,379 14,379 14,379 ~
l.
18.
Income 9,087 12,773 12,773 51,921 19.
Payroll & Hiscellincous 3 477 4 306 4,306 4 306 ~
20.
Total Taxes M6,,163 MI,45^8 5
31,4W 570Mf~
t 21.
Total Operating Expenses S U 17 155 U W 970 5
294,411 5 336.686.
22.
Net Operating Income 93,992 44,785 44,785
$ 147,320 23.
Weighted Average Rate Base
$1,170,382
$1,287,410
$1,287,410
$1,287,410 (n H 24.
Rate of Return (%)
8.02%
3.48%
3.48%
11.44%
{g l
er n tn III (2)
(3) j Excludes Steam Department.
Zero fuel b.ints-Includes cost of GN-5 gas.
Nu o$-
N l
4 TA8LE 5-8 SteetARY ' EARNINGS-ELECfRIC DEPARTHENTII}
(Thousands of Dollar's)
LINE NO.
TITLE RECORDED DATA 1973 1976 1977 1778 TV77~~
(A)
(B)
(C)
(D)
(E)
(F)
(G)
Operatina Revenues 1
Eales to Customers 2.
Miscellaneous
$283,239.1
$368.185.7
$387,432.7
$478,931.4
$556,562.9 ECAC Adjustment 1,430.9 (1,484.5)
- 91.7 969.8 8.478.6 Property Tax Adjustment (12,522.6) 27,561.9 3.
Total Operating 8tevenues 5733~57(O)
U 54 T 8~3 UBC37U F37.0687 55 C O )
833.0) 4.5 geratina Exper.ses 4.
Fuel 160,190.4 186,976.8 241.648.6 262,012.2 331.498.4 5.
Other Production-12,381.4 11,295.9 (14,831.7) 35,436.1 40.564.1 6
Transmission 4,775.3 4,402.3 5,088.8 4,915.9 6.450.9 7
Distribution 10,635.5 10,489.0 11,656.2 14,337.0 17,186.1 8
Customer Accountind & Collection 6,312.6 7,104.1 7.596.)
8,278.0 0.396.1 9.
Marketing 834.0 1,003.8 1.228.C 1,477.5
",488.7 10.
Administrative & Gene;?!
17 22 258.1 25 945.4 31 05I.9 35 046.7 571d,756.5
.11.
Subtotal 2
8577 F743,53570 5279,,33IT4 F157,.50873 7447,,63ITU
(,
ds 12.
Depreciation & Amortization 22,868.6 24,023.8 27.110.2 30,923.6 40.018.2 I
Taxes 13.
K3 Va1 tem 9
12,195.9 14,493.8 15.552.5 13,261.1 10.758.3 14 Incomet27 16,359.0 2,126.0 3,764.0 11.254.0 15.
Payroll & Hiscellaneous 1,196,0 1.395.8 1.564.0 1,732.2 2 278.3 16 Total Taxes
$ 33,391.9
$ 32.248.6
$ 19.242.5 5 18.757 3 I~7 29076 17.
Total Operating Expenses 5249.146.2
@ T 807~4 QX6TC ICUT.7893 F5D O 39~B 18.
Net Operating income
$ 35,523.8
$ 54,376.2
$ 62.740.3
$ 71,878.7
$ 85.609.1 19.
Weighted Average Rate 8ase
$623,960.4
$668,378.8
$704,775.9
$811.538.9
$878.657.6 20 Rate of Return (%)
5.691 8.13%
83p,t 8.86%
9 ;741 3
(1)
Adjustments made to both expenses and revenues for balancing account undcr/over collections in 1975-1978. Adjustments made to revenues for balancing account under/over collections in 1979, (2) Operating lose for ratemaking purposes in 1975.
vi ri Income taxes adjusted for ratemaking methodology in subsequent g"g; years.
o r*
rv ts1 r-* un 1
O 03 rw tu
i TABLE 5-B
SUMMARY
OF EARNINGS-ELECT *lc DEPAR1FENT (Thousands of Dollars)
LINE 1980 1981 1981 1981 NO.
TITLE AS EXPECTED TEST YEAR TEST YEAR AT PROPOSED RATESII)
III (H)
~
(I)
(J)
[i)
Operating Revenues 1,
Sales to customers S 815,092 S 978,719 S 275,868
$ 492,498 2,
Miscellaneous 7,506 7.075 7.075 7,075 3.
ECAC Adjustment (21 4.
Total Operating Revenues F 80 b.719)
(26,550) 9 5 959,2G MBETC3 F ~ T,67~573 Operating Expenses 5.
Fuel
~~
513,926 673,336 13,995 13,995 6.
Other Production.
43,996 52,226 49,770 49,770 7.
Transmission 7.135 8,649 8,649 8,649 8.
Distribution 20,341 25,101 25,101 25,101 9.
Customer Accounting & Collection 10,405 12,175 11,260 11.450
- 0.
Marketing 8,235 14,802 14,802 14,892 fl.
siministrative & Ceneral 48 178 57,339 43 750 40 219 u
l '..
Suhtotal M2M S 843,678 M 37,D77 MTDK I
j8 13.
Depreciation & Amortization
.45,686 50,076 50,076
$0.J'6 hs Taxes 14.
13~ Valorem 11.013 11,709 11,709 11,709 15.
Income 7.943 11,235 11,235 45,326 16.
Payroll & Hisctilaneous 2 623 3,248 3,248 3.248 17.
Total Taxes 5
21,574 5
26,197 5
26.172 s
69.293 t
18.
Total Operating Expenses T~719K d 919,89E L 243 575 j~~'J3(UTE5 19.
Net Operating income 81,398 3
39,348 39,348 S 129.228 20.
Weighted Average Rate Base
$1.019,533
$1,129,302
$1,129.302 St 129,302 21.
Rate of Return (7.)
7.987 g87
_I l g 3 487 II) un ei Zero fuel basis.
SI!s ne rt tT!
ba tn i
O 03 P4 PO
4 Tant.E 5-C Stw 'tRY OF EARNINGS-CAS Dt.PARTHENTII}
(Thousande of bollars)
LlHE No.
TITI.E RECORtt.D DATA 7 475 1376 197T~
1978 1979 -
(A)
(B)
(C)
(D)
(E)
(P)
(G)
Operating Revenues Sales to Customery )
1.
Interdepartmentalg2 S 88.448.8 S 90.02),6
$100,666.4 S108.914.5
$134,781.3 2.
3.
Miscellaneous 14,615.3 19,756.2 18.548.2 55,687.8 85.516.1 4
Furchased Cas Adjustment 427.5 334. 3 502.5 651.8 1.086.3 5.
SAH Adjustment (3,130.I) 2,459.0 671.1 11.490.6 6.
Property Tan Adjustment (60.6)
(24.745.2) 7 Total Operating Revenues SID3~4h13
$106~984~0 S TIT,liG~T
$T5T(.574 7290.4)159.4 O erating Espenses
$20818875 y
8 Gas SuppI'yT7}
9.
Cas Storage 61,769.3 62,519.6 84,831.1 100,011.6 155.435.2 10 Transmission 625.7 617.3 734.1 9 30.6 1,775.6 Distribution 683.5 668.7 712.5 961.7 1.164.3 12 Customer Accounting & Collection 6.882.5 7,498.3 7.372.0 7,855.9 8.855.4 13.
Marketing 3,772.1 4,247.4 4.467.9 4,668.2 5.117.2 14 Adsetnistrative & Ceneral 539.6 780.5 818.2 1.097.3 1.689.8 u
15.
Subtotal 7 487.9 8 140.2 9 541.2 10 010.0 11 076.5
$ ~81,.76076
$~84.,492TO S T08,.477'O
$125,,335 3 S185',11470 I
16 Depreciation & Amortization 5.975.5 6.210.0 6,573.0 7,022.4 7.539.5 Tases 4'"
XJ'Va1 pi 17.
9 m 19.8. Inc w t
- 803.5 3,507.2 3,917.1 3,267.9 2,385.0 Payroll & Miscellaneous 2,193.0 3,055.0 3,581.0 8,624.0 1,141.0 20.
Total Tames 509.8 575.9 583.5 610.8 747.1 S T 566T3 7.T18.~1 87081 3 S 7Tl5027 S -~7.!268 71 21.
Total Operating Expenses S'~4T74T'4
$ ~4724DTI
$ 173'151'"6
$ T43~6602 S QQ7D 22.
Het Operating income S 10.249.2 S
9,141.9
$ 19.024.5 S 7'),513.8 5 11,366.9 23.
Weighted Average Rate Base
$123,416 6
$ 125.104 2 S128.359.9
$132.826.0
$139.777.5 24 Rate of Return (1)
M,6 MII.
llb fl27.
13.447.
8 IE (1) Adjustments made to both expenses and ruenuen for balancing account undcr/nver collecttons in 1975-1978. Adj us t ment s 9g made to revenues for balancing account under/over collecttons in 1979.
(2) Includes cost of ml-5 s;as.
(3) Income taxes adjusted for ratemaking methodology.
- 3 m Og
- s.n 1
OC m
s TABLE 5-C SUtttARY OF EARNINGS-CAS DEPARTMENT (Thousands of Dollars)
LINE NO.
TITI.E 1980 1981 19J1 A_SJXPECTED TEST YEAR TEST YEARIl}
1981 Dil
~~TO AT PROPOSED RATES _II)
Operatina Revenues (J)
_ ~K)
(
1.
Sales to customers
- 2..Interdepartmentalt2)
$178,210
$237,344 S 49,201 3.
Miscellaneous 134.412 S 56.194 102,259 5.676 4
PGA & SAM Adjustment 1,354 1,376 1,376 16,863 5.
Total Operating Revenues 11,155
($ $18) 1,376 FT10,'351 5335iT31
' Operating Expenses S 56,253 s 74.433 6.
Das SuppIFT7) 7 Gas Storage 269,703 273,693 (8 54 )
8.
Transmission 1,896 2,088 9.
Distribution.
1,699 2,088 (854) 2,088 1,821 1,821 10.
Customer Accounting & Collection 9,963 11,485 11,485 1,821 11.
Marketing.
5,634 6,485 6,210 11.485
'f 12.
Administrative & General 2,444 4,433 4,433 6.237 r) 13.
Sut*otal 11,929 16 4.433 I
53d57263 F316,5.212 11.826 17 12 261 b3 14 Depreciation & Amortization 5 31,009 53.,4,1 8,035 8,541 8,541 Taxes 8,541
.15.
)RFV31orem 16 Income 2,526 2.670 2,670 2.670 17.
Payroll & Hiscellaneous 1.144 1,538 1,538 18.
Total Taxes 854 1,058 1,058 6.601 5~~47524 5~ 5',763 1.059 5 5,265 F'107If9 19.
Total Operating Expenses FIT 7 M F31 Q 71 5 50.,916 F7F~33 20.
Het Operating Income
$ 12.524 S 5,437
$ 5,437 S 18.092 21.
Weighted Average Rate Base
$150,349 S158,108 S158,108 22.
Rate of Return (7.)
S158.108 8.30%
3.44%
3.44%
11.44',
(I)
(n gj Zero fuel basis.
m os (2) o r*
i nc t **. lac enet of rs:. s nac PO u 1
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m PO
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