201 Brooks Street. p.0. Box 812 Charleston, West Virginia 25323 Public Service Commission of West Virginia Phone: (304) 340-0300 Fax: (304) 3400325 November 12,2015 Ingrid Ferrell Executive Secretary Public Service Commission PO Box 812 Charleston. WV 25323 RE: CASE NO. 15-0675-8-42T CASE NO. 15-0674-WS-D Dear Ms. Ferrell: Enclosed for filing in the hearing record are an original twelve copies of the Post Hearing Exhibit in the above referenced proceedings. A copy has been served upon all parties David A. &de WV State Bar I.D. No. 3229 / DAS/cs Enclosures H:\tsade\Cases 2015Rate Cases\WVAW Co. Rate, Depr cases 15-0674.75, 76\Cover Letters.doc
PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON Rule 42T application to increase water rates charges CASE NO. 15-0675-8-42T Rule 42T application to increase wastewater rates charges CASE NO. 15-0674-WS-D Application to change depreciation rates CERTIFICATE OF SERVICE I, David A. Sade, Counsel for the Public Service Commission of West Virginia, hereby certify that I have served a copy of the foregoing Post Hearing Exhibit upon all parties of record by First Class United States Mail, postage prepaid, this the 12'h day of November 2015. Christopher L. Callas, Esq. JacksonKelly PLLC Andrew T. Gunnoe, Esq. Counsel, Kanawha County Commission Regional Development Authority PO Box 3627 Charleston, WV 25336 Tom White, Esq. Consumer Advocate Division 700 Union Building JacksonKelly PLLC 723 Kanawha Boulevard, East John Philip Melick, Esq.
Stephen N. Chambers, Esq. Jackson Kelly PLLC Marc J. Slotnick, Esq. Counsel, Kanawha County Commission Bailey & Wyant, PLLC PO Box 3710 Charleston. WV 25337 Paul R. Sheridan, Esq. Counsel, Advocates for a Safe Water System 429 McKinley Ave. Charleston, WV 253 14 Barry A. Naum, Esq. Group SWVA, Inc. 1100 Bent Creek Boulevard, Suite 10 1 Mechanicsburg, PA 17050 Susan J. Riggs, Esq. Group SWVA, Inc. Spilman Thomas & Battle PO Box 273 Charleston, WV 25321-0273 Paul D. Ellis, Esq. Counsel, City of Charleston 501 Virginia Street, East Mi Kay Carter, Esq. Counsel, City of Charleston 501 Virginia Street, East Nicklaus A. Presley, Esq. Counsel, West Virginia-American Water Company JacksonKelly, PLLC Derrick P. Williamson, Esq. Group SWVA, Inc. 1100 Bent Creek Blvd., Suite 101 Mechanicsburg, PA 17050 Lee F. Feinberg, Esq. Group SWVA, Inc. PO Box 273 Charleston, WV 25321-0273 WV State Bar I.D. No. 3229
PUBLIC SERVICE COMMISSION OF WEST VlRGINIA UTlLlTlES DIVISION POST HEARING EXHIBlT 1 FROM: Josh Allen, Utilities Analyst Utilities Division DATE: November 10.20 15 SUBJECT: Case No. 15-0675-S-42T Per Chairman Albert s request, the Utilities Division has further reviewed Exhibits in the rebuttal testimony of Dr. James H. Ver Weide in Case Nos. 15-0676-W-42T 15-0675-8-42T. With the understing that the Utilities Division does not agree with the Company s market-weighted average methodology, Staff recalculated the numbers. Using the data presented on the Company s Schedule 1, which include Staffs DCF results rounded to the nearest tenth, the Utilities Division calculates a marketweighted average DCF result of 10.0% as opposed to the 10.1% shown on this schedule. If the DCF results would have been presented to the nearest hundredth, as done in Staff exhibit Appendix JA-I, Schedule 2, a market-weighted average DCF of 10.06% would have been calculated. It should be noted that market capitalization numbers fluctuate daily, neither set of market capitalization numbers, one set in the Company s direct testimony one set in the Company s rebuttal testimony, have been verified. Staff notes that the market capitalization numbers on the Company s Schedule 1 are different than those in Dr. Ver Weide s direct testimony. Using the market capitalization numbers found in Dr. Ver Weide s direct testimony, a market-weighted average DCF of 10.05% would have been calculated using Staffs DCF results rounded to the nearest hundredth. With the understing that the Utilities Division does not agree with the Company s market-weighted average methodology the Company s assumed flotation cost, as well as the understing that the market capitalization numbers have not been verified, no mathematical errors were made on Dr. Ver Weide s Schedule 2. However, a market-weighted average DCF with a flotation cost allowance of 10.16% would have been calculated if the DCF results would have been presented to the nearest
Case No. 15-0675-3-42T November 10,2015 Page 2 of 2 hundredth, as done in Staff Exhibit Appendix JA-1, Schedule 2. Using the market capitalization figures from Dr. Ver Weide s direct testimony, a market-weighted average DCF of 10.15% would have been calculated using Staffs DCF results rounded to the nearest hundredth.