2026-09-09_ - PC 2515 -ACC-DECISION-FOR-LIBERTY-RATE-CASE-AUG-2026.PDF

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BEFORE THE ARIZONA CORPORATION COMMISSION
2 COMMISSIONERS
Arizona Corporation Commission
3 NICK MYERS - CHAIR DOCKETED
RACHFL WALDEN - VICE CHAIR
4
LEA MARQUEZ PETERSON AUG 2 8 2026
5 KEVIN THOMPSON
RENE LOPEZ DOCKETBDBY
6
7 IN THF MATTER OF THE APPLICATION OF DOCKET NO. W-0 I 427A-25-0l26
LIBERTY UTILITIES (LITCHFIELD PARK
8 WATER & SEWER) CORP., AN ARIZONA
CORPORATION, FOR A DETERMINATION OF
9 THE FAIR VALUE OF ITS UTILITY PLANT AND
PROPERTY AND FOR INCREASFS IN ITS RATES
10 AND CHARGES FOR WATFR UTILITY SERVICE
AND FOR CERTAIN RELATED APPROVALS.
I I
IN THE MATTER OF THE APPLICATION OF DOCKET NO. SW-01428A-25-0127
12 LIBERTY UTILITIES (LITCHFIFLD PARK
WATER & SEWER) CORP.. AN ARIZONA
13 CORPORATION. FOR A DETERMINATION OF
THE FAIR VALUE OF ITS UTILITY PLANT AND
14 PROPERTY AND FOR INCREASES IN ITS RATES
AND CHARGES FOR WASTEWATER UTILITY
15 SERVICE AND FOR CERTAIN RFLATED
APPROVALS.
16
IN THE MATTER OF THE APPLICATION OF DOCKET NO. W-01427A-25-0163
17 LIBlRTY UTILITIES (LITCHFIELD PARK SW-01428A-25-0163
WATER & SFWER) CORP. FOR A FINANCING
18 ORDER AUTHORIZING THE ISSUANCE OF DECISION NO. 82134
ADDITIONAL DEBT, AND FOR RELATED
19 APPROVALS. OPINION AND ORDER
20 DATE OF HEARING: March 23 - 27. and April 3. 2026
21 PLACE OF HEARING: Phoenix, Arizona
22 ADMINISTRATIVE LAW JUDGE: Belinda A. Martin
23 APPEARANCES: Timothy J. Sabo and Ilias Ancharski. Osborn Maledon.
PA. Counsel on behalf of Liberty Utilities (Litchfield
24 Park Water & Sewer) Corp.,
25 Stephen Emedi. Director of Legal Services Arizona and
Texas on behalf of Liberty Utilities (Litchfield Park
26 Water & Sewer) Corp.:
27 Sarah Barrios Cool. Counsel . and Daniel W. Pozefsky.
Chief Counsel. on behalf of the Residential Utility
28 Consumer Office, and
S\BMar\in\Llberty.LI\chtield\250I 26elaI()&O.Amended.docx I

DOCKET NO. W-01427A-25-0126. ET AL.
I Bridget A. Humphrey. Senior Associate General
Counsel. on behalfofthe Utilities Division of the Arizona
2 Corporation Commission.
3
4 BY THE COMMISSION:
5 l. Procedural Histo
6 On June 13. 2025. Liberty Utilities (Litchfield Park Water & Sewer) Corp.. ("Liberty
7 Litchfield" or "Company") tiled with the Commission a Notice of Intent to File a General Rate Case
8 Application for its Water Utility Service ("Water Rate Applications)' and a Notice of Intent to File a
9 General Rate Case Application for its Wastewater Utility Service ("Wastewater Rate Application", and
10 together with the Water Application. the "Rate Applications").2
i I On June 18. 2025. a Procedural Order regarding consent to email was issued in each docket.
12 On June 30. 2025, Liberty Litchfield filed its Water Rate Application in Docket No. 25-0126
13 and its Wastewater Rate Application in Docket No. 25-0127.
14 On July 18. 2025, Liberty Litchfield docketed Corrected Rate Schedules for its Water Rate
15 Application.
16 On July 24. 2025. Liberty Litchfield filed additional Corrected Rate Schedules for its Water
17 Rate Application. and Corrected Rate Schedules for the Wastewater Rate Application.
18 On July 25. 2025. Liberty Litchfield filed a Notice of Errata regarding two mistakes in the .Inly
19 24. 2025. Corrected Rate Schedules for the Water Rate Application.
20 On July 30. 2025. the Commissions Utilities Division ("Staff`) docketed Letters of Sufficiency
21 in Docket Nos. 25-0126 and 25-0127, stating that Liberty Litchfieldls Water Rate Application and
22 Wastewater Rate Application each net the minimum sufficiency requirements as outlined in the
23 Arizona Administrative Code ("A.A.C.") R-I4-2-103, and classifying Liberty Litchfield as a Class A
24 utility.
25 On July 31. 2025. by Procedural Order. a telephonic procedural conference was scheduled to
26 be held on August 7. 2025.
27
l Docket No. W-01427A-25-0126 ("Docket No. 250126").
28 Docket No. W01428A-25-0127 (Docket No. 250127").
82134
2 DECISION no. _ _

DOCKET no. W-01427A-25-0126. ET AL.
l On August 5. 2025. the Residential Consumer Office ("RUCO") filed an Application to
2 lntervcne. and RUCOs Proposed Procedural Schedule.
3 On August 5. 2025, Liberty Litchfield and Staff docketed a Joint Notice of Filing Proposed
4 Schedule.
5 On August 6. 2025, Liberty Litchfield filed an Application in Docket Nos. W-01427A-25-0163
6 and SW-01428A-25-0163. ("Financing Application Dockets") for a financing order authorizing the
7 issuance of additional debt, and for related approvals. ("Financing Application").
8 Also on the same date. Liberty Litchfield filed a Notice of Filing a proposed form of notice.
9 On August 7. 2025. the telephonic procedural conference was held as scheduled. Liberty
10 Litchfield. RUCO. and Staff were present at the procedural conference through counsel. During the
I l procedural conference. the participants discussed RUCO's intervention request, to which no parties
12 objected. The participants also discussed various schedule and deadline issues. In addition. they
13 discussed consolidation of the Water Rate Application Docket. the Wastewater Rate Application
14 Docket. and the Financing Application Docket. The parties agreed that consolidation was reasonable
15 and that no party would be harmed by the dockets consolidation.
16 On August 7. 2025. by Procedural Order. RUCOs Application to Intervene was granted.
17 On the same date. a Procedural Order regarding consent to email service was issued in the
18 Financing Application Docket.
19 On August 7. 2025, a Procedural Order granting the consolidation of the Water Rate
20 Application Docket. the Wastewater Rate Application Docket. and the Financing Application Docket
21 was issued.
22 On August 8. 2025. by Procedural Order. a hearing was scheduled to begin on March 23. 2026.
23 and other procedural requirements and deadlines were established.3
24 On September 8. 2025. Liberty Litchfield filed its Certification of Mailing and Publication. The
25 Company stated that notice of the hearing was mailed to customers on August 29. 2025. and published
26 in the West Valley View. a newspaper in circulation for the City of Goodyear. Maricopa County, on
27 3 On thesame date. by Procedural Order, the prior Procedural Order was modified to change the date for provision of the
USBs from August 22. 2026. to August 22. 2025. The deadline for intervention was changed from October 17. 2026. to
28 October 17, 2025.
3 DECISION no. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
I August 27. 2025.
2 ()n January 16. 2026, RUC() filed the Direct Testimony of Cynthia Zwick. Jeffrey M. Michlik.
3 Crystal Brown. and Baylor Sai.
4 On the same date. Staff filed the Direct Testimony of Matthew Malone. Helen Betzomayeh.
5 Mark Swiler. and Eunyoung Lee.
6 On January 23. 2026. RUCO filed the Direct Rate Design Testimony of .IeIfrey M. Michlik.
7 On the same date. Staff filed the Direct Testimony of Helen Betzomayeh. Teresa Hunsaker.
8 Guadalupe Ortiz. and Eunyoung Lee.
9 On January 26. 2026. RUC() docketed a Notice of Errata correcting errors within the testimony /
I() and schedules of Baylor Sai.
l I ()n February 5. 2026. Liberty Litchfield filed a Notice of Settlement Meeting. In the Notice. the
12 Company advised the Commission that the parties would be meeting on February I 7. 2026. to conduct
13 settlement negotiations.
14 On February 18. 2026. Liberty Litchfield Iiled a Notice of Settlement and Request for
15 Procedural Conference. and RUCO filed a Notice of RU(()'s Position RE: Notice of Settlement and
16 Request for Procedural Conference.
17 On February 19. 2026. Liberty Litchfield filed a Status Report. The Company noted that it had
18 circulated a proposed schedule to the parties that preserved the current hearing dates and provided for
IO the filing of the lOrn al Settlement Agreement and the attendant testimonies. As such. Liberty Litchfield
20 stated that it would not be filing any rebuttal testimony on Friday. February 20. 2026. as directed in the
21 August 8. 2025, Procedural Order because a new schedule was anticipated as a result of the Settlement
22 Agreement.
23 On February 20. 2026, by Procedural Order. a telephonic procedural conference was scheduled
24 for February 27, 2026. The Procedural Order also required Liberty Litchfield to submit its Rebuttal
25 Testimony on or before February 25. 2026. and other procedural requirements and deadlines were
26 established.
27 On February 23. 2026. RUCO filed its Status Report and Proposed Schedule. l
28 On February 25, 2026. Commissioner Lea Marquez Peterson filed letters in the Water Rate
82134
4 DECISION no.

DOCKET NO. W-0 I427A-25-0126. ET AL.
I Application Docket and the Wastewater Rate Application Docket requesting information regarding
2 formula rates and the transparency of the formula rate process.
3 Also on February / 25, 2026. Liberty Litchfield docketed the Rebuttal Testimony of Moses
4 Thompson. Manasa Rao. and Thomas Bourassa. In addition. Staffflled its Response to RU(Os Status
5 Report and Proposed Schedule.
6 On February 26. 2026. Liberty Litchfield docketed its Notice of Filing Proposed Settlement
7 Schedule.
8 On February 27. 2026, Staff filed a Notice of Manner of Participation.
O ()n February 27. 2026. the procedural conference4l was held as scheduled. Liberty Litchfield.
10 RUCO. and Staff all appeared through counsel. During the procedural conference. the parties
I l acknowledged that they agreed to the schedule proposed by Liberty Litchfield. In addition. Liberty
12 Litchfield was requested to provide an exhibit for the hearing listing all states and/or commissions that
13 have approved formula rates other than FERC interstate transmission rates, and a listing of the utilities
14 in those states that have adopted formula rates and when. and how many are water/wastewater utilities.
15 Liberty I Litchfield was also asked to compare. to the best of its ability. how those formula rate plans
16 compare to the Com missionls Formula Rate Policy.
17 On the same date. RUC() and Liberty Litchfield filed their respective Notices of Manner of
18 Participation.
19 On March 3. 2026, Liberty Litchfield filed a Notice oflFiling Settlement Agreement and a Joint
20 Motion to Bifurcate (Phase II Formula Rates) on behalf of Staff and the Company.
21 ()n March 4. 2026, RUCO tiled an Opposition in Response to Joint Motion to Bifurcate.
22 On March 5. 2026. Liberty Litchfield filed a Joint Reply in Support of Motion to Bifurcate
23 (Phase II Formula Rates) on behalf of the Company and Staff.
24 On March 6, 2026. Staff docketed the Pre-Filed Testimony of Briton Baxter in Support of the
25 Settlement Agreement. and Liberty Litchfield filed the Pre-Filed Testimony of Manasa Rao in Support
26 of the Settlement Agreement.
27
4 The February 20. 2026. Procedural Order set the procedural conference to be held telephonically. Subsequently. the parties
28 were requested to appear in person at the Comn1issions Phoenix office.
5 DECISION no.. 82134

DOCKET NO. W-0I427A-25-0126, ET AL.
l Also on March 6. 2026. a Procedural Order was issued denying the Joint Motion to Bifurcate
2 (Phase II Formula Rates).
3 On March 10. 2026. Liberty Litchfield and Staff submitted a Joint Notice of Errata to Settlement
4 Agreement to reflect the correct percentage of the debt in the Capital Structure.
5 On March 12. 2026. RUCO docketed a Notice of its Filing Witness Summaries for Cynthia
6 Zwick. Jeffrey Michlik. Crystal S. Brown. and Baylor Sai.
7 ()n March 13. 2026. Liberty Litchfield docketed a Notice of Filing Witness Summaries of
8 Moses Thompson. Matthew Garlick. Peter Eichlcr. Terry Gilbertson. Thomas Bourassa. Regina Wise.
9 and Manasa Rao. and Staff filed a Notice of Filing Witness Summaries for Matthew Malone. Helen
10 Betzomayeh. Mark Swiler, Eunyoung Lee. Teresa llunsaker. Guadalupe Ortiz, and Briton Baxtcr.
I I Also on March 13. 2026. Staff filed an Expedited Motion for Reconsideration of the findings
12 in the March 6, 2026. Procedural Order denying the Joint Motion to Bifurcate (Phase II Formula Rates).
13 On March 16, 2026. RUCO docketed the Prc-Filed Surrebuttal Testimony of Jeffrey M.
14 Michlik. Crystal Brown, and Baylor Sai.
15 On March 17. 2026. RUC() filed its Response to Staff's Expedited Motion For Reconsideration
16 (Phase II Formula Rates).
17 Also on March 17. 2026. a Procedural Order was issued granting Staffs Expedited Motion for
18 Reconsideration. and setting additional hearing dates on May 14 and 15. 2026. specifically for the
19 purpose of taking testimony and receiving additional exhibits on the Cost of Service Reconciliation
20 Mechanism ("CSRM") and extending the time clock.
21 Later the same day. Liberty Litchfield docketed an Emergency Response to Procedural Order.
22 noting that it disagreed with the Procedural Orderls findings, and stating that it opposed the extension
23 of the time clock.
24 On March 19. 2026. a Procedural Order was issued vacating the hearing dates set in the March
25 17. 2026. Procedural Order.
26 Also. on March 19. 2026. Liberty Litchfield and Staff filed a joint filing regarding Liberty
27 Litchfields fomlu la rate plan ("FRP"). The joint filing reflected a change in the name of the proposed
28 FRP from "Cost of Service Reconciliation Mechanism" to "Annual Rate Adjustment Mechanism"
6 DECISIONNO. 82134

DOCKETNO. W-0 I427A-25-0126. ETAI..
I ("ARAM") for purposes of transparency.5 The joint tiling included a Plan of Administration ("POA").
2 and a summary of the updated ARAM POA. The Company noted that the proposed associated rate
3 template and customer notice regarding the ARAM were being finalized and would be submitted in a
4 separate filing.
5 On March 19. 2026. Liberty Litchfield filed a Notice of Filing Issues Matrix. and RUC()
6 submitted a List of Witnesses and/or Exhibits.
7 On March 20. 2026. Staff and Liberty Litchfield submitted their respective List of Witnesses
8 and/or Exhibits.
9 On March 23. 2026. the Company docketed a Notice of Filing Late-Filed Exhibits ("LFE"). a
10 Notice of Filing a Revised Issues Matrix. and a copy of the opening statement slide deck to be used at
I I hearing.
12 On the same date. the hearing began as scheduled and public comments were taken. One
13 member of the public was present to present statements in favor of a proposed formula rate plan. All
14 parties were present at the first day of hearing. The hearing continued on March 24 through 27. 2026.
15 and April 3. 2026. At the conclusion of the hearing. the parties discussed a briefing schedule and agreed
16 that the Opening Briefs would be due on May 18. 2026. and the Reply Briefs would be due on June 8,
17 2026.
18 On March 24. 2026. RUCO and Liberty Litchfield each docketed Notices of LFEs.
19 On March 25. 2026. RUCO submitted a Notice of LFEs.
20 On March 26. 2026. RUCO and Liberty Litchfield each docketed Notices of LFEs.
21 On March 27. 2026. Staff submitted a Notice of LFEs.
22 On April 2. 2026. RUCO and Liberty Litchfield each docketed a Notice of LFEs.
23 On April 6. 2026. a Procedural Order was issued confirming the briefing schedule and
24 extending the time clock to August 14. 2026. based on the number of hearing days.
25 On April 8. 2026. Liberty Litchfield docketed a Notice of LFE attaching Late-Filed Exhibit A-
26 33 providing the plant retirement information requested during the hearing.
27
28 5 For simplicity. any reference to the CSRM shall be noted as the ARAM unless otherwise necessary.
7 DECISION NO. 82134

DOCKET NO. W-0 I427A-25-0126. ET AL.
I On April 10, 2026. a Procedural Order was issued directing the parties to submit a response to
2 the Company's Late-Filed Exhibit A-33. On the same day. Staff filed its Response to Late-Filed Exhibit
3 A-33 indicating that Staff did not object to the admission ofLFE A-33.
4 On April 15. 2026. RLICO docketed its Response/Obiection to Company's Late-Filed Exhibit
5 A-33. RUCO stated that while it does not object to admission ofLFE A-33. it takes exception to certain
6 claims made by Liberty Litchfield that the retirement-related adjustments in the Settlement Agreement
7 result in a lower revenue requirement than retiring assets normally.
8 On April 17. 2026. Liberty Litchfield filed a Reply in Support of Late-Filed Exhibit A-33.
9 On April 20. 2026. a Procedural Order was issued granting the admission of LFE A-33.
I() Also on April 20. 2026. RUCO submitted a Notice of Filing indicating that RllCO had provided
I l its Schedules and Work papers to the Hearing Division.
12 On April 28. 2026. Liberty Litchfield tiled a letter responding to a letter docketed on February
13 25. 2026. by Commissioner Lea Marquez Peterson requesting information about formula rate plans.
14 The Company indicated that a response to Commissioner Marquez Petersons second letter also dated
15 February 25. 2026. would be provided at a later date.
16 On May 12. 2026. Staff docketed a Motion for Admission of StaffExhibit S-6. Staff stated that
17 it believed that the record was unclear as to the admission of Exhibit S-6 and requested its admission
18 into the record. On May 18. 2026. a Procedural Order was issued granting Staffs Motion.
19 On May 18. 2026. Liberty Litchfield and Staff docketed their Joint Closing Brief. and RllCO
20 submitted its Closing Brief. Additionally. Liberty Litchfield and Staff. and RUC() filed their respective
21 Notices of Filing Final Schedules.
22 On May 19. 2026. Liberty Litchfield filed a letter responding to Commissioner Marquez
23 Petersonls second letter docketed on February 25, 2026, requesting information about formula rate
24 plans.
25 On .Lune 8. 2026. Liberty Litchlield and Staff docketed their Joint Reply Brief. and RUCO tiled
26 its Reply Brief.
27 On July 24. 2026. the Recommended Opinion and Order ("ROO") was issued.
28 On July 30. 2026. RUCO docketed a Request for Extension of Time to file their Exceptions to
8 DECISION NO. 82134

l)O(Kl"I NO. W-01427A-25-0126, FT AL.
I the Roo.
7. On July 3 I . 2026. a Correction Letter to the ROO was issued. and a Procedural Order granting
3 the Request for Extension of Time was also issued.
4 Also on July 3 I . 3076. Liberty Litchfield filed a Request to Clarify the Procedural Order issued
5 earlier that day to ensure that the extension of time to tile exceptions to the ROO applied to all parties.
6 The Procedural Order responding to the Companys Motion was issued the same day acknowledging
7 that the extension applied to all parties.
8 On August 4. 2026. Hearing Division Proposed Amendment No. I was issued.
9 On August 5. >0>6 Vice Chair Walden docketed a letter to the Company requesting
I0 information regarding the applicability of the ARAM to certain customer classes.
I I Also on August 5. 2026. the Company and Staff docketed their .joint Exceptions to the ROO.
12 and RUC() docketed also their Exceptions.
13 On August 6. 2026. llearing Division Proposed Amendment No. 2 was issued.
14 On August 10. 2026. RIICO and Liberty Litchfield docketed their respective responses to Vice
15 Chair Waldens August 5. 2026. letter.
16 Also on August 10. 2026. Hearing Division Proposed Amendment No. 3 was issued. Vice Chair
17 Walden docketed her Proposed Amendment No. I and Commissioner Thompson docketed his
18 Proposed Amendment No. l.
19 On August I I. 2026. Vice Chair Walden docketed her Proposed Amendments Nos. 2 and 3.6
20 The ROO "as considered by the Commission at its August IZ. 20"6. Open Meeting. The
21 Commission adopted Proposed Hearing Division Amendments No. I and No. 2.7 Commissioner
22 Thompson's Proposed Amendment No. I. and Vice Chair Waldens Proposed Amendments No. I and
23 No. 3. During the ()pen Meeting. Staff claimed that the revenues fOr each I)ivision as re IIected in the
24 RO() did not generate the revenues necessary to meet the adopted Revenue Requirement. The
25 Administrative Law .judge advised the Commission that she u as unaware of Staltls calculations but
"6 that the Hearing Divisions financial analyst would work with Libcrtv Litchfield and Staff to ensure
l
l
27
6 Vice (hair Walden withdrew her Proposed Amendment No. 2 during the Commissions August 12. 2076, Open Meeting.
28 The (ommission did not vote on Hearing Division Proposed Amendment No. 3.
82134
O l)l(lSl()N NO.

DOCKET NO. W-01427A-25-0126. ET AL.
l schedules reflected accurate financial information.
2 Procedural History of the Proposed ARAM Phase II Proceeding
3 On February 20. 2026. by Procedural Order. a telephonic procedural conference was scheduled
4 for February 27. 2026. to discuss the required submission of testimony as directed in the August 8.
5 2025. Procedural Order. and to discuss the proposed schedule changes as a result of the anticipated
6 Settlement Agreement. Subsequently. the parties were requested to appear in person at the Commission
7 for the Procedural Conference.
8 On February 27. 2026. the procedural conference was held at the Commissions Phoenix office.
9 l . iberty Litchfield. RUCO. and Staff appeared through counsel.
10 At the time of the Procedural Conference. the Settlement Agreement had not yet been filed.
I l RUCO related that recently the Company had proposed that the FRP issue be bifurcated into a Phase
12 II proceeding, but RUCO opposed that proposal. RUCO contended that the ARAM was too interwoven
13 "ith / the issues regarding the Cost of Equity. Post-Test Year Plant and other possible pro forma
14 adjustments. As such, RUCO asserted that all issues should be heard at once. The Company
15 acknowledged that the proposed bifurcation of the ARAM into a Phase II proceeding was addressed in
16 the soon to be filed Settlement Agreement and stated that this eventuality was a term of the Settlement
I 7 Agreement. The Company stated that it was concerned that RUCO intended to litigate the ARAM issue
18 during the hearing beginning March 23. 2026. despite the bifurcation provision in the Agreement. The
19 parties were told that the issue would be clarified once the Settlement Agreement was docketed and
20 the terms were known.
21 Section lll.E.I of the Settlement Agreement docketed March 3. 2026. reads:
22 Phase II for Formula Rates / ARAM. The Company's proposed Formula Rate Plan.
termed the Cost of Service Reconciliation Mechanism [(ARAM").] will be addressed in
23 a Phase II proceeding. and these Consolidated Dockets will be held open for that purpose.
The Phase II proceeding will not occur until after the Commission establishes rates fOr the
24 Company. The Phase II proceeding will be modeled after the Phase II proceedings
currently pending for EPCOR Water Arizona. Inc. and Arizona Water Company (Northern
25 Groups). The Company will not be permitted to file its Phase II proposal until March 31.
2027.
26
27
28 7 Settlement Agreement docketed on March 3, 2026. p. 6.
82134
10 DECISION NO.

DOCKET NO. W-01427A-25-0126. ET AL.
I In the Companyls Motion to Bifurcate docketed simultaneously "ith / the Settlement
2 Agreement. the Company requested that the ARAM be addressed in a Phase II proceeding. The Motion
3 to Bifurcate highlighted that. "[t]he Settlement Agreement reflects a deliberate choice to not litigate
4 the formula rate issues at this time. The Company is reviewing and analyzing the formula rate
5 provisions adopted by the Commission [in Decision No. 81653 (February 27. 2026)]. All parties
6 will benefit from additional time to assess and monitor developments in that matter.,,8
7 On March 4. 2026. RUCO filed an Opposition in Response to .joint Motion to Bifurcate. RUCO I
8 asserted that it should have the opportunity to litigate the ARAM within the context of the entire
9 Settlement Agreement. as the Agreement states that the terms are not severable and "a formula rate
10 proposal is intricately linked to many of the rate case elements that are part of the revenue requirement
I I and cannot be neatly separated into two phases as bifurcation will allow.999 RUCO reasoned that if
12 consideration of the ARAM is put off for a Phase II hearing as outlined in the Settlement Agreement.
13 the matter cannot be filed before March 31. 2027. which is one year later and would result in regulatory
14 lag. RUCO believed that given the delay. the return on equity would have to be reconsidered and. due
15 to market changes. the cost of equity components would be stale. RUCO argued that "the Company
16 should either make the case for the mechanism now or withdraw it until its next rate case.nl() RUCO
17 commented that granting a Phase II proceeding presumes approval of at least part of the Settlement
18 Agreement without giving RUCO an opportunity to present its case against the terms of the Settlement
19 Agreement.
20 On March 5. 2026. Liberty Litchfield filed a Joint Reply In Support Of Motion To Bifurcate
21 (Phase II for Formula Rates) on behalfofthe Company and Staff. In the .joint Reply.the Company and
22 Staff asserted that a Phase II proceeding would have no impact on regulatory lag because revenue
23 requirements and rates will have been set in Phase l.
24 On March 6. 2026. a Procedural Order was issued denying the Joint Motion to Bifurcate (Phase
25 II Formula Rates) on the grounds that the proposal for a Phase II proceeding did not provide sufficient
26 good cause to outweigh the negative impact on judicial efficiency.
27
s Joint Motion to Bifurcate (Phase II for Formula Rates). p. 2.
o RUCOs Opposition In Response To Joint Motion To Bifurcate (Phase II Formula Rates), p. 2.
28 lo RlICOs Opposition In Response To Joint Motion To Bifurcate (Phase It Formula Rates). p. 4.
I I DECISION NO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
I On March 13. 2026, Staff filed an Expedited Motion for Reconsideration of the findings in the
2 March 6. 2026. Procedural Order denying the Joint Motion to Bifurcate (Phase II Formula Rates). Staff
3 stated that since issuance of the Procedural Order, in an affidavit of Staff witness Brit Baxter attached
4 to the Expedited Motion. Mr. Baxter confirmed that Staff did not have sufficient information from
5 Liberty Litchfield to fully evaluate the proposed ARAM and raised concerns that the current hearing
6 schedule did not permit a complete record on the formula rate issues. Staff requested that the
7 Administrative Law Judge either grant a 45-day continuance of the entire hearing or allow
8 bifurcation."
9 On March 17. 2026. RUCO filed its Response to Staff's Expedited Motion For Reconsideration
10 (Phase II Formula Rates). RUCO contended that Staflf's Motion for Reconsideration did not address the
l l reasons outlined in the March 6, 2026. Procedural Order for denying the Joint Motion to Bifurcate.
12 RUCO asserted that the Procedural Order's denial of the Joint Motion to Bifurcate correctly
13 encapsulated the Company's entire argument as the "notion that the Company does not want to be one
14 of the first formula rate cases out of the gate."l2 RUCO commented that the Procedural Order noted all
15 of the discussion about the timing of the hearing scheduled in this matter (March 23 - 27. 2026) in
16 procedural conferences going back to the scheduling procedural conference held on August 7. 2025.
17 RUCO agreed with the Procedural Order that the reasons to wait until other matters vt r ith formula rates
18 are decided do not outweigh the reasons to consider the issues now. and judicial efficiency does not
19 benefit from more litigation down the road.
20 Subsequently on the same day, a Procedural Order was issued granting Staffs Expedited
21 Motion for Reconsideration. and setting additional hearing dates on May 14 and 15, 2026. specifically
22 for the purpose of taking testimony and receiving additional exhibits on the ARAM. rather than
23 delaying the entire hearing," and extending the time clock.
24 Later the same day. Liberty Litchfield docketed an Emergency Response to Procedural Order.
25
II Staffs Expedited Motion for Reconsideration. p. 2.
26
12 RUCOs Response to Staffs Expedited Motion for Reconsideration (Phase II Formula Rates), p. 2.
13Staffs request to delay the entire hearing for 45 days would have placed the hearing during, the week between the expected
27
ending date for the Tucson Electric Power rate hearing and the anticipated beginning date for the Arizona Public Service
rate hearing. In addition to potentially stretching Staff and RUCO resources, any overlap could also affect the availability
28 of witnesses, court reporters, and hearing rooms.
l
12 DECISION NO. _82134
l

DOCKET NO. W-01427A-25-0126. ET AL.
I noting that it disagreed with the Procedural Orders findings. and stating that it would not agree to any
2 extension of the time clock.
3 On March 19. 2026, a Procedural Order was issued vacating the additional hearing dates set in
4 the March 17. 2026, Procedural Order.
5 Also on March 19. 2026. Liberty Litchlicld and Staff filed a joint filing regarding the
6 Company's proposed ARAM. The joint filing included a revised ARAM P()A and a summary of
7 changes to Liberty Litchlields original proposals. The Company noted that the associated ARAM
8 Template and customer notice were being finalized and would be submitted in a separate filing.
9 At the hearing, the parties presented their arguments about whether Staff testimony should be
10 taken during the existing hearing dates or whether Staff's ARAM testimony should be heard at a later
l l time.14 Staffstated that it was ready to present its ARAM testimony during the then scheduled hearing
12 dates. RUCO argued that Staff's testimony should be delayed because there was no written testimony
13 from Staflon which RUCO could base its cross-examination. The Administrative Law Judge ruled that
14 Staff could present its testimony during the hearing and that an additional hearing day would be
15 scheduled for April 3, 2026. giving RUCO an opportunity to prepare its cross-examination of Staffs
16 witnesses Theresa Hun saker and Brit Baxter about formula rate plans in general and the proposed
17 ARAM.!5
18 II. Back round
19 A. Liberty , Litchfield Generally
20 Liberty Litchfield is a Class A public service corporation that provides water and wastewater
21 utility service areas to the west of the City of Phoenix. including the City of Litchfield Park. and
22 portions of the Cities of Goodyear. Phoenix, and Avondale. and has contracts for service with Luke Air
23 Force Base and Valley Utilities Water Company. According to the Company. Liberty Litchfield served
24 approximately 24.205 wastewater customer connections and 22.355 water connections. 16
25 The current rates for both the water and wastewater systems were approved by the Commission
26
14 Tr. at 877 - 895, 1033 - 1041.
27
15 Tr. at 1033 - 1041.
16 All water customers are also wastewater customers, but not all wastewater customers receive water service from Liberty
28 Litchfield. Tr. at 162.
13 DECISION NO. 82134
l l
l

DOCKET NO. W-01427A-25-0126. ET Al..
I in Decision No. 76799 (August 15. 2018)."
2 Liberty Litchfield is a wholly owned subsidiary of Liberty Utilities (Sub) Corp.,18 which is
3 wholly owned by Liberty Utilities Co. ("Liberty Utilities"), a Delaware corporation. In turn, Liberty
4 Utilities is a subsidiary of Liberty Utilities (Canada) Corp. ("Liberly Utilities Canada"). Algonquin
5 Power Utilities Corp. ("APUC") is the ultimate parent company otall Liberty entities. APUCls shares
6 are traded on the New York and Toronto Stock Exchanges."
7 Affiliated water utilities of Liberty Litchflield include Liberty Utilities' Beardsley Water
8 Company. Bella Vista Water. and Cordes Lakes. which were recently consolidated by the Commission
9 in Decision No. 81361 (June 18. 2025). In addition to Liberty Litchfield. APUC is the ultimate parent
10 company for other wastewater systems in Arizona including Entrada Del Oro. Gold Canyon Sewer.
I I Black Mountain. and two evaporation ponds in its Rio Rico plant.20
12 B. Liberty Litchfield Water System"
13 The Liberty Litchfield water systems current Certificate of Convenience and Necessity
14 ("CC&N") for water service was most recently modified in Decision No. 79292 (February 15. 2024).22
15 The system includes 17 wells with a yield of 16.450 gallons per minute. three storage tanks
16 with a combined total capacity of 10,800,000 gallons. four pressure tanks. 12 booster pumps. and a
17 distribution system. The majority of customers on the system use a 3/4-inch meter. Staff notes that
18 during the test year Liberty Litchfield's water system experienced a water loss of 9.9 percent, just
19 below Staffs recommended maximum allowable water loss level of 10.0 percent. Based on Staflls
20 analysis. Staff concludes that Liberty Litchfields water system has sufficient production and storage
21 capacity to serve its current customer base.
22 Staff observes that Liberty Litchfields water systems service area is within the Arizona
23 Department of Water Resources ("ADWR") Phoenix Active Management Area ("AMA") and is
24 subject to ADWR AMA reporting and conservation requirements. Staff notes that according to a Water
25
Iv Ex. S-3, pp. 3 - 4.
26
is Also referred to as LU 8020.
"> Ex. S-3. pp. 2 - 3.
27 Zo Ex. S7. Appendix D: Affiliate Compliance. Table D. I .
21Information in Water and Wastcwater Sections was compiled by Staff engineering witness, Eunyoung Lee. Ex. S7.
28 22In which a portion of the CC&N of Valley Utilities Water Company. Inc. was transferred to Liberty Litchfield.
14 DECISION NO. 82134

DOCKET NO. W-0I 427A-25-0I26. ET AL.
I Provider Compliance Report dated October 9, 2025. Liberty Litchfields water system is compliant
2 with ADWR requirements governing water providers and/or community water systems.
3 Staff states that according to an Arizona Department of Environmental Quality ("ADEQ")
4 Compliance Status Report (CSR") dated December I. 2025, Liberty Litchfields water system is
5 currently delivering water that meets water quality standards required under C.F.R. Title 40. Part 14 l .
6 and A.A.C. Title 18. Chapter 4.
7 Staff notes that Liberty Litchfield has an approved Curtailment Tariff for the Liberty Litchfield
8 water system that became effective on May 8, 2024. The Company is not proposing any changes to the
9 tariff and Staff notes that it does not have any recommendations regarding the Curtailment Tariff.
10 Staff notes that Liberty Litchfield has an approved Cross-Connection/Backflow Prevention
I I tariff that became effective on May 8. 2014. Staff observes that the Company proposed an updated
12 Cross-Connection/Backflow Prevention Tariff that includes additional terms that allow the Company
13 to require customers to pay for repairs to a backfIow-prevention assembly. Staff states that because
14 customers are responsible for the installation. repair. and testing of the backflow-prevention assembly.
15 Staff agrees with the proposal. As such, Staff recommends that the Commission approve the
16 Companys updated Cross-Conncction/Backflow Prevention Tariff.
17 We find that Staffls recommendation is reasonable. and we adopt it. l
18 c. Liberty Litchfield Wastewater System
19 Liberty Litchfields wastewater systems current CC&N was most recently modified in
20 Decision No. 81433 (August 19. 2025).23
21 Liberty Litchfield's wastewater system is comprised of two water reclamation facilities
22 ("WRF")-the Palm Valley WRF and the Sarival WRF - and one effluent recharge facility. The Palm
23 Valley WRF has two lift stations, approximately 15,900 linear feet ("LF") of force collection mains.
I
24 approximately 1.182.200 LF of gravity collection mains. and approximately 17,860 service laterals. II
25 The Palm Valley WRF is permitted to produce Class A+ effluent with an average monthly flow
26 capacity of 6,900,000 gallons per day (°gpd"). Treated effluent from the Palm Valley WRF is
27
23 In which the Commission approved an extension of the wastewater CC&N to a l0-acre parcel located at the northwest
28 comer of West Camelback Road and North Perryville Road within an unincorporated area of Maricopa County.
15 DECISION n o. 82134

DOCKETNO. W-01427A-25-0126. ETAL.
I discharged to the Sustainable Effluent to Aquifer Project ("SEAP") recharge facility located
2 approximately three miles north of the plant. to the Roosevelt Irrigation District ("RlD") canal and can
3 be reused for any allowable purpose.
4 The Sarival WRF is gravity fed and consists of approximately 453.500 LF of gravity collection
5 mains and approximately 6.355 service laterals. The Sarival WRF has a one way interconnection sewer
6 main to the Palm Valley WRF. which allows it to send flows from the Sarival WRF influent to the
7 Palm Valley WRF. The Sarival WRF is permitted to produce Class A+ effluent with an average
8 monthly flow capacity of 4.400.000 gpd. Treated effluent from the Sarival WRF is delivered to the
9 effluent reuse distribution system and is also discharged to the SEAP discharge facility and to the RID
l() canal.
l l Staff notes that ADEQ regulates the Liberty Litchfield wastewater I system through APP No.
12 100310 for Palm Valley. APP No. 513981 for Sarival WRF. and APP No. 514107 for SEAP. Staff
13 states that according to an ADEQ CSR dated October 9. 2025. the Sarival WRF and SEAP were in
14 compliance with ADEQ regulations during the compliance period of October 3, 2024. through October
15 3. 2025. Staff notes that during the same period. the Palm Valley WRF was not in compliance with
16 ADEQ regulations due to exceedances of fecal coliform discharge limits and other reported
17 deficiencies.
18 Staff explains that ADEQ also regulates the Liberty Litchfield wastewater system through
19 AZPDES. No. AZ0025712 for the Palm Valley WRF and No. AZ 0026425 for Sarival WRF.
20 According to an ADEQ CSR dated l)ecember 5. 2025. the Palm Valley and Sarival WRFs were in
21 compliance with ADEQ regulations during the compliance period o f lanuary l. 2025. through October
22 31.2025.
23 As a result, Staff concluded that the Sarival WRF and SEAP were in compliance with ADlrQ
24 regulations. but the Palm Valley WRF was not.
25 D. Other Compliance
26 Staff states that according to its review of the Conlmissionls Compliance Database completed
27 on November 13, 2025, Liberty Litchfield was in compliance with all trackable compliance
28 requirements entered into the Conlmissions compliance database.
16 DECISIONNO. _ 82134

DOCKET NO. W-01427A-25-0126. ET AL.
l Staff notes that it also checked the compliance status of the Company's affiliated water and
2 wastewater systems to determine if those systems were in compliance with ADEQ. ADWR. and the
3 Commission. Staff states that all of the Companys affiliated water systems are in compliance with
4 ADEQ requirements. Staff notes that two affiliated wastewater systems-Entrada Del Oro and Gold
5 Canyon Sewer-are out of compliance with ADEQ requirements. Further, Staff states that the
6 Company's Bella Vista Sulgar mater / system is out of compliance with ADWR. Finally. Staff states that
7 all of the Compare}s I affiliated water and wastewater systems are in compliance with Commission
8 compliance requirements.
9 E. Consumer Services
10 Staff states that its review of its Consumer Services records for the period between .lanuary I.
I I 2022. through November 12. 2025. reflects that I 16 consumer complaints against Liberty Litchfield
12 were filed with the Commission.
13 . 2025 - 13 complaints: seven billing. five quality ofservice. and one repair issue.
14 . 2024 - 16 complaints: I I billing, two disconnect and three quality of service.
15 . 2023 - 76 complaints: 40 billing. one construction. two deposit issues. one disconnect,
16 29 quality of service. one rates complaint. one repair issue, and one service
17 complaint.
18 . 2022 - I I complaints: eight billing, one disconnect. one new service. and one quality
19 of service.
20 Staff notes that as olJanuary 16. 2026, one 2025 complaint remained open. Staff states that 3 l
21 opinions opposing the Applications have been received.
22 F. Interveners
23 RUC() is the sole intervenor in this matter. RUCO was established by the enactment of Arizona
24 Revised Statutes ("A.R.S."). § 40-461, "et seq.". for the purpose of representing residential utility
25 consumers in matters before the Commission concerning regulated public service corporations.
i
26 t
27 ii
i
28 i
17 DECISION NO. _82134

DOCKET NO. W-0 I427A-25-0126. ET AL.
I G. Witnesses
2
EXHIBIT #S AND
WITNESSES POSITION AREAS OF TESTIMONY TRANSCRIPT ("Tr")
3
PAGES
Libert Litchfield
4
Liberty Litchfield Utilities
Service Corp.. President
5
Arizona and Texas Regions. Case Overview, Sarival A6, 7
Moses Thompson 1
President of Liberty V\ RF Vol. l, Tr. at 56 - 73
6
Litchfield Utilities (Litchfield
Park Water & Sewer Cor \ .
7
Sarival WRF: Pre-
Vice President. Technical treatment Tariff; F((RM; A-8
8 Matthew Garlick
Services Impact of Forever Vol. I. Tr. at 79- 116
9 Chemicals, HUF
Other Capital
Senior Manager of A I 0
10 Terry Gilbertson Improvements and Post
Operations Vol Il,Tr.at 141 165
Test Year Plant
I I Revenue Requirement.
Senior Director Rates and Certain Rate Base and A-l6,l7,l8
12 Manasa Rao Regulatory Affairs. West Income Statement Vol III, Tr. at 346 - 544.
Region Adjustments. Formula Rate 576 - 594
13 Plan
Emergency Water
14 Augmentation Tariff, Fire A I 5
Senior Director of Rates and
Regina Wise Services Tariff: FCCRM: Vol. II. Tr. at 303 - 325
Regulatory Affairs
15 Customer Assistance
Tariff; HUF
16 Senior Vice President, A-9
Cost Allocation Manual;
Peter Eichler Business and Financial (Written Testimony
Corporate Shared Services
17 Plan fin Sti ulated
Schedules, Cost of Service A-ll,l2.l3,l4
Tom Bourassa Rate Consultant
18 Stud , CostofCa l ital Vol II, Tr. at 168 - 285
19 RLCO l
RUCO- I
Cynthia Zwick Director of RUCO Formula Rate Plan
20 Vol. IV, Tr. at 594 - 628
RUCO Public Utilities COSS: Rate Design, RUCO-2, 3. 4
Jeffrey Michlik
21 Mana or Formula Rate Plan Vol. IV, Tr. at 630 - 755
Rate Base, Depreciation
RUCO Public Utilities RU(O-5. 6
22 Crystal Brown Expense, Amortization
Analyst V Vol. V, Tr. at 823 867
Ex erse
23 Cost of(apitaI: Revenue
Requirement, Operating
24 RUCO Public Utilities RUCO-7, 7A, 8. 9
Baylor Sai Income, Operating
Analyst Vol. iv, Tr. at 758 - 800
Expenses, Settlement
25 A resent
26 STAFF
S9
27 Public Utilities Manager, Formula Rate Plan. Other Vol. V, Tr. at 953 - 992,
Teresa Hunsaker
Utilities Division Adjustor Mechanisms Vol. VI. Tr. at 1061 -
28 1130
18 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126, ET AL.
Water and Wastewater
I
Utilities Engineer II, Utilities Systems, Rate Base S-7. 8
Eunyoung Lee
Division Additions, Cost of Service Vol. V. Tr. at 907 - 910
2 Stud
Rate Base, Revenue
3 Public Utilities Analyst, S-3
Matthew Malone Requirement, Financing
Utilities Division Vol. V, Tr. at 898 - 90 l
A 0 O lication
4
S-I0
Public Utilities Analyst IV.
Guadalupe Ortiz Tariff Analysis (Written Testimony
5 Utilities Division
Sti ulaled
Public Utilities Analyst, S-6
6 Mark Swiler Cost of Capital
Utilities Division Vol. V, Tr. at 918 -951
Operating Revenue,
7 S4, 5
Operating Expenses,
Public Utilities Analyst, (Testimony adopted at
Helen Betzomayeh Operating Income,
8 Utilities Division hearing by Ms. Hun saker)
Operating Income
Adustments. Rate Desi n
9
S~l I
Co-Director, Utilities
10 Briton Baxter Settlement Agreement Vol. V, Tr. at 995 - io33,
Division
Vol. VI, 1131 - 1237
lI
Ill. Relevant Commission Decisions
12
A. Decision No. 79647 (l)ecember 31, 2024)"
13
On December 31. 2025. the Commission issued Decision No. 79647 regarding the adoption of
14
15 a formula rate plan policy ("Policy") for the Commission. An FRP is a regulatory mechanism for
16 utilities where rates are adjusted annually using a pre-defined mathematical formula. rather than by
17 filing a full rate application. In Decision No. 79647. the Commission concluded that the Policy and
18 FRPs "advance multiple rate making objectives, including improving transparency, oversight and
19 stakeholder engagement.effecting a timelier cost recovery. reducing regulatory burden. and enhancing
20 administrative efficiency.~25 The terms of the Policy state that regulated utilities may propose an FRP
pursuant to the Policy. According to the Policy. any proposal offered should:
21
Include a plan to reduce the number of existing adjustors,
22
Use an historical test year pursuant to A.A.C. RI4-2-I03(A)(3)(p),
23
Include an annual update,
24
Include an earnings test. preventing utilities from exceeding an authorized return
25
outside of a dead band,
26
27
24 In the Maller OI theCommis.virm s lnquirjt into Possible Mod(lieations lo the commission s Test Year Re/es, Docket No.
AU00000A-23-0012
28 25 Decision No. 79647. p. 5.
82134
19 DECISION no.

DOCKET NO. W-01427A-25-0126, ET AL.
I • Include protocols modeled after the FERC MISOprotocols that establish a broad
2 scope of participation in the information exchange. transparency of the
3 information exchange. and the ability olratepayers. stakeholders. and parties to
4 challenge the information. and
5 Include key inputs from the utilitys operating expenses, capital investments.
6 taxes. depreciation. plant in service. and a Commission-approved ROE.
7 The Policy outlines a sample timeframe for the presentation of an Annual Update representing
8 the temps authorized by the Commission in a utilitys general rate case.2°
9 B. Decision No. 80122 (March 20,2025)"
10 On August 12, 2024. Liberty Litchfield filed an application with the Commission for approval
l l of an Accounting Order to defer annual Depreciation Expense for its new $l08 million Sarival WRF
12 ("Accounting Order Application"). In the Accounting Order Application. the Company stated that the
13 Sarival WRF was a critically needed and long-planned addition to Liberty Litchfield wastewater system
14 that was recently placed in service. After review of the Companys Accounting Order Application. the
15 Commission adopted Staffs recommendation to approve it. subject to certain limitations. including: I)
16 that the cost deferral associated with the Sarival WRF eliminate all costs associated with Indirect
17 Overhead Allocations ("INDOH") and Allowance for Funds Used During Construction ("AFUDC");
18 2) that the costs eligible for deferral be limited to the Depreciation Expense. subject to the removal of
19 INDOH and AFUDC, 3) that the cut off point for recording costs related to the Sarival WRF to be
20 included in the deferral will end on December 3 I . 2024, and 4) that the Commission would specifically
21 reserve any finding of prudency regarding the Sarival WRF until after the details are reviewed within
22 the context of a general rate case 1iIing.28
23
24
25
26
ze Decision No. 79647, Attachment A, pp. I - 3.
27 In the Muller of the Application of ljberly l/lililies (Lilchfeld Park Water and Sewer) ( up for an .4ccouming Order
27 .4ulhori::ing the Deferrul of (erlain (`0s!s Relating Io the Sarival Wafer Reclamation Iizcilily. Docket No. SW-0 l428A-
24-0 I79.
28 ex Decision No. 80122. p. 5.
20 DECISION NO. 82134

DOCKET N(). W-0I427A-25-0126, ET AL.
I C. I)ccision No. 8136] (June 18, 2025)29
2 Decision No. 81361. the Commission authorized. among other things. consolidation of a
3 number of Liberty Utilities smaller water and wastewater systems ("Liberty Consolidated Systems")
4 and approved a rate increase for the Liberty Consolidated Systems. In that matter, a point of contention
5 among the parties was the issue of what percentage of overhead costs (INDOH) could be allocated to
6 the parent company and other administrative functions not performed by Liberty Consolidated
7 Systems. In that matter. Liberty explained that all APUC operating units are managed and operated
8 with shared corporate and business support services. combined with decentralized local management
9 and operational control of day-to-day utility operations. As such. each regulated utility benefits from
10 access to a variety of shared corporate and business support services, access to capital for infrastructure
I I investments, and receives substantial benefits for the utility and its customers through these shared
12 corporate services.3° Liberty defined shared services as corporate administrative. financial and
I3 accounting. human resources and other business support services provided to and paid for by more than
14 one entity or division within an entity. The cost for these shared services is pooled and allocated in
15 accordance with the APUC Cost Allocation Manual ("CAM"). which is based on the National
16 Association of Regulatory Utility Commissioners ("NARUC") guidelines regarding transactions
17 between affiliates. Liberty noted that although the CAM provides direction as to how costs should be
18 allocated. the CAM does not present a process as to how the portion of the administrative and general
IO costs that are indirectly incurred for the benefit of capital or construction projects should be capitalized.
20 Liberty explained that INDOH refers to that portion of administrative and general costs that support
21 capital projects and. in turn. are capitalized and become part of the rate base instead of included as
22 operating expenses. Once capitalized. INDOH costs become part of the asset on the utilitys books and
23 included as part of rate base. Liberty related that after the administrative and general costs have been
24 allocated to the appropriate cost pools through the application of the CAM. a capitalization rate will be
25 applied to determine the percentage of the costs allocated to a utility.
26
*QIn the A[alter of the Application ofljberty l .utilities fliearalsley H aler) Corp., an Arizona Corporation, for a Determination
27 of the Fair Value of its lltility Plants and Property and for Increases in its Rates and Chargesfor Utility Service Iiased
1i1ereon. Docket No. W-0207/A-23-0337, et al.
28 to Docket No. W-02074A-23-0337, et al.. Hearing Ex. A-7. p. 4.
21 DECISION NO. _§2]3A

DOCKETNO. W-01427A-25-()l26. ETAL.
I There are two entities that provide a variety of corporate shared services to Liberty Litchfield-
2 APUC and Liberty Utilities West Region. In a Settlement Agreement approved in Decision No. 8 I 361.
3 the parties specifically acknowledged and agreed that an INDOH capitalization rate of 14 percent for
4 APUC corporate shared service costs, and 21 percent fOr West Region shared service costs is an
5 appropriate resolution for the indirect current shared services provided to Liberty's Arizona utilities
6 going forward. Although the parties agreed in the Settlement Agreement that the establishment of
7 capitalization rates did not bind the Commission in future rates cases. the parties stated that it was their
8 intention that the capitalization rates would be utilized on a going-forward basis unless the Commission
9 orders otherwise.
10 Further. under the terms of that Settlement Agreement. the parties agreed to adjustments for the
l l corporate shared services Operating Expenses allocated to I.iberty's regulated utilities in Arizona.
12 resulting in the removal of 50 percent of shared services costs for Bonuses, Long-Term Incentive Plan.
13 Board of Directors Fees. Directors and Officers Insurance. Meals & Entertainment. Travel. and Dues
14 and Memberships. The Company agreed to the removal of 100 percent of the shared services costs for
15 the Supplemental Executive Retirement Plan. Charitable Contributions, Housing/Car Allowance,
16 Gift/Awards. Employee Immigration Costs. and Employee Relocation Costs. The parties stated that it
17 was their intention that the adjustments to corporate shared services Operating Expenses would be
18 utilized on a going-forward basis unless the Commission orders otherwise.
19 Although in the Settlement Agreement the parties agreed to exclude 50 percent of the Board of
20 Directors Fees from Operating Expenses. the Commission modified the terns of the Settlement
21 Agreement to exclude 100 percent of the Board of Directors Fees from Operating Expenses.
22 D. Decision No. 81653 (February 27, 2026)
23 The Commission authorized the first application for an FRP in Arizona in Decision No. 81361
24 for UNS Gas, Inc. ("UNSG").31 In that Decision, the Commission stated that. in general. an FRP is a
25 way for a utility to adjust annually its rates that had been approved by the Commission in a company's
26 last full rate case without having to file a formal rate case. The Commission noted that a formula rate
27
31 In the Matter of the Application of llNS Gas, Inc. for the Islabli5hment of ./us/ and Reasonable Charges Designed to
Realize a Reasonable Rafe Q/ Return on the lair la/ue Qflhe l'roperlies of (,I\.S I (Jas, Inc. Devoted lo its Operations
28 Throughout the Stale safAri:ona and for Related Approvals, Docket No. G-04204A-24-0237.
22 DECISIONNO. 82134

DOCKET NO. W-0I 427A-25-0126, ET AL.
I is a pre-approved. pre-set calculation. Although the formula is pre-set. the Commission may still step
2 in if the results are not just and reasonable. The Commission also noted that an FRP is different from
3 a cost tracker such as a System Improvement Benefit or a Purchased Gas Adjustor. which are designed
4 to recover specific costs for specific purposes. The Commission stated that a formula rate typically
5 specifies which cost and revenue components may be updated. how those components are calculated.
6 how the resulting rate changes are implemented. and the timing and procedures for review." Under the
7 terms of an FRP. the utility would file an Annual Update every year after the issuance of the decision
8 in the general rate case setting the FRP terms going forward. At the sixth year. rather than filing another
9 Annual Update. the utility is required to file a general rate case. However. a company may file a general
10 rate application at any point during those five years.
I I For UNSG's FRP proposal. the Commission revised a number of the requirements. or protocols,
12 proposed by UNSG in its FRP. which UNSG called the Annual Revenue Adjustment Mechanism.
13 Proposed Protocols included the application and level of a dead band. the use of PTYP in an Annual
14 Update. the treatment of Cost of Debt. Cost ofEquity, Capital Structure. and a Rate of Return on a Fair
15 Value Increment on Rate Base. The Commission revised certain protocols regarding the provision of
16 notice to ratepayers regarding an upcoming submission of an Annual Update. timeline of formal
17 challenges to the Annual Update. and the involvement of the Hearing Division in disputes on the inputs
18 to the Annual Filing. Further. the Commission found that it was reasonable to add a provision to the
IO ARAM stating that at any time during the Annual Update process, the Commission may. at the request
20 of Staff for good cause and/or at the Commission's discretion. suspend the ARAM protocols.
21 IV. Rate A lications
22 A. Summary of Parties' I)irect Testimonies to Rate Applications
23 I. Liberty Litchfield
24 In its Rate Applications, Liberty Litchfield stated that a rate increase is needed for both its water
25 and its wastewater systems because the Company has made significant infrastructure investments for
26 new wells providing additional water supply, and for the new Sarival WRF. The Company also noted
27
28 32 Decision No. 81653, p. 9] .
23 DECISION NO. 82134

DOCKET NO. W-0I427A-25-0126, ET AL.
l the impact ofinilation on operating costs. which were based on a 2016 test year. had been significant.
2 In its Water Rate Application. Liberty Litchfieldls Water Division proposed a revenue increase
3 of $6,203,028, or 38.40 percent. over test year revenues of $I6.I 52,0I I. to $22,355,039, yielding
4 Operating Income of $5.893,283, based on a Rate of Return ("ROR") on Rate Base of 8.45 percent on
5 a proposed adjusted Fair Value Rate Base ("FVRB") of $69.765.704.33
6 Liberty Litchfields Wastewater Rate Application proposed a revenue increase of$l 1.586.379.
7 or 53.76 percent. over test year revenues of $2I.569.086 to $33.I65,465. which would yield Operating
8 Income of $l 1.309,783. based on an ROR of 8.45 percent on a proposed adjusted FVRB of
9 $I 33.887.l59.
10 The ROR for both Divisions was based on a pro forma Capital Structure consisting of54 percent
l l equity and 46 percent debt and a proposed a Cost ofDebt of5.69 percent and Return on Equity of l 0.80
12 percent.
13 The bill resulting from the Company's requested Revenue Requirement and rate design for a
14 water customer using a 3/4-inch meter. with average usage of8. l 50 gallons per month. would increase
15 from $24.l 6 to $34.60. an increase of $10.43, or 43.21 percent. The bill for a wastewater customer
16 resulting from the Company's requested Revenue Requirement would increase from $45.23 to $69.72.
17 and an increase of $24.49. or 54. I5 percent.
18 In addition. the Company proposed a Rate Case Expense of $800.000 divided between the
19 Divisions, recovered through a surcharge collected over three years. Liberty Litchfield estimated a
20 surcharge of $0.43 for water customers and $0.52 for wastewater customers.
21 Liberty Litchfield proposed continuation of its Property Tax Adjustor Mechanism and
22 Purchased Power Adjustor Mechanism, revision of certain current tariffs, such as its Hookup Fee Tariff
23 and the Pre-Treatment Tariff and presented new tariffs for Commission consideration. such as a
24 Federal Compliance Cost Recovery Mechanism, and an Industrial Fire Services Tariff.
25 In the Company's Rate Applications, it proposed an ARAM. through which Liberty Litchfield
26 could adjust its rates annually based on historical changes in the Companys Revenue Requirement.
27
28 33 The Company proposed treating its Original Cost Rate Base as its Fair Value Rate Base.
82134
24 DECISION NO.

DOCKET no. W-0I427A-25-0126. ET AL.
I The Company stated that the framework for the ARAM was derived from the Policy approved in
2 Commission [)ecision No. 79647. Liberty Litchfield asserted that its proposed ARAM does not include
3 a future test year or future expenses. The Company noted that the plan Vi / ill allow timely cost recovery
4 and reduce regulatory lag. which Liberty Litchfield asserted will benefit both the customers and the
5 Company." The Company explained that the Annual Updates provided to the Commission will not
6 include typical rate case elements such as depreciation studies. cost of service studies. cost of equity
7 studies. or other elements of a full. general rate case. Liberty Litchfield noted that upon approval of the
8 ARAM. some tariffs would no longer be necessary as the costs would be subsumed under the ARAMs
9 provisions."
10 Finally. / Liberty Litchfield claimed that the ARAM will enhance the Company's efforts to
I I manage costs efficiently while providing safe. reliable. and affordable service.36
12 2. Staff Direct Testimony
13 Staff recommended a Revenue Requirement increase fOr the Water Division of $4,935,I 84, or
14 30.55 percent. from $I 6,l52.()I I to $21,087.I95. Staflls recommended revenue increase would result
15 in an Operating Income of $5,266.897. a 7.63 percent ROR on its recommended FVRB of
16 $69.028,791.37
17 Staff recommended a Revenue Requirement increase f`or the Wastewater Division of
18 $9.584.080, or 44.43 percent. from $2I.569.086 to $3 I,I53.l66. Staffs recommended revenue
19 increase would result in an Operating Income of$l0.124.490, a 7.63 percent ROR on its recommended
20 FVRB of$I 32.693.I 8().38
21 Staflf accepted the Companys proposal to treat the OCRB as the FVRB for both Divisions."
22 Staff also accepted Liberty Litchtields proposed Capital Structure of54 percent equity and 46 percent
23 debt. Staff recommended a Cost of Debt ot5.49 percent and an ROE of9.45 percent."°
24 Under Staffs recommended revenue and rate design. the bill for a water customer using a 3/4-
25
34 Ex. A-16. p. Io.
26 35 Ex. A-I6. p. 15.
36 Ex. A-I6. pp. 13 16.
37 Ex. S-3. p. 8.
27
18 Ex. S3. p. 9.
in Ex. S-3. p. 9.
28 40 Ex. S-6. p. 9.
82134
25 DECISION NO.

DOCKET no. W-01427A-25-0126, ET AL.
I inch meter. with average usage of 8. I 50 gallons per month. would increase from $24.l6 to $32.98. an
2 increase of $8.82. or 36.51 percent." The bill for a wastewater customer would increase from $45.23
3 to $65.00, an increase of$l 9.77. or 43.70 percent."
4 Staff recommended a Rate Case Expense of $400.000 Tor the combined divisions. to be
5 recovered through a surcharge collected over three years. Staff estimated a Rate Case Expense
6 surcharge of $0.25 for water customers and $0.23 for wastewater customers."
7 In its Direct Testimony. Staff stated that it had reviewed the Companyls proposed ARAM.
8 Although Staff agreed with certain terms of the ARAM. Staff disagreed with others. Staff noted that it
9 and the Company would work together to revise the ARAM for Commission approval."
10 3. RUC() Direct Testimony
l I In its l)irect Testimony. RUCO proposed two different Revenue Requirement values and Rate
12 Designs-one ifno FRP is adopted and the second using RUCOls proposals ifthe Commission adopts
13 an FRP.
14 Without the adoption of an FRP. RUCO proposed a Revenue Requirement increase for the
15 Water l)ivision of $5.280.100, or 32.69 percent. to $2 l.432.l I I from RUCOs adjusted test year
16 revenues of $l 6,I52.0l I. RUCOls proposed revenue increase would result in Operating Income of
17 $5.292.579. a 7.70 percent ROR on its proposed FVRB of $68.734.797." lethe Commission adopts
18 the Companyls proposed FRP. RUCO proposed a Revenue Requirement increase for the Water
19 Division of$4.()8().070. or 25.26 percent. from $ I 6. I 52.01 I to $20,232.08I. RU(IOs adjusted test year
20 revenues oI$16.I52.01 I. would result in Operating Income of $4.620.756. a 7.62 percent FVROR on
21 RUCOs proposed FVRB of$60.657.355.'"'
22 Without the adoption of an FRP. RUCO proposed a Revenue Requirement increase for the
23 Wastewater Division of $9.342.4I 8. or 43.31 percent. from $2I,569.086 to $30.9 I 1.504. RUCOs
24 proposed revenue increase would result in an Operating Income of$9.342.4I 8. a 7.70 percent ROR on
25
41 Ex. S5. Direct Schedule HBW-I9.
26
" Ex. S-5, Direct Schedule HB-SI9.
43 Ex. S-5. pp. 12 - 13.
27 44 Ex. S-9, p. 8.
45 Ex. RUCO5. WaterDivision Schedule l, without formularates.
28 46 Ex. RU(O-5. Water Division Schedule I. with formula rates.
26 DECISIONNO. 82134
I

DOCKET NO. W-01427A-25-0126. ET AL.
I its recommended FVRB oI$I25,767,526.47 If the Commission adopts the Company's proposed FRP.
2 RUCO proposed a Revcnue Requirement increase for the Wastewater Division of$9.085.536. or 42. I2
3 percent. from RUCOs adjusted test year revenues of $2I,569.086 to $30,654,622. RUCOs proposed
4 revenue increase would result in an Operating Income of$9.485.76I . a 7.62 percent ROR on RU(O's
5 proposed Rate Base 0f$l24.521.000.**'
6 RUCO accepted the Companys proposal to treat the OCRB as its FVRB for both Divisions.
7 RUCO also accepted Liberty Litchtieldls proposed Capital Structure of 54 percent equity, 46 percent
8 debt. and a Cost of Debt ofs.69."" RUCO proposed an ROE oI9.32 percent if an FRP is not approved."
O If the Commission approves an FRP. RUCO requested a reduction of 15 basis points. for an ROE of
10 9.17 percent.5'
l I Under RUCO's proposed rate design without the adoption of an FRP. the bill for a water
12 customer using a 3/4-inch meter. with average water usage of 8. I 50 gallons per month, would increase
13 from $24.16 to $3l.97. an increase of $7.8l, or 32.34 percent." The bill for a wastewater customer
14 would increase from $45.23 to $64.89. an increase of$l9.66. or 43.46 percent."
15 Under RUCO's proposed rate design with the adoption of an FRP. the bill for a water customer
16 using a 3/4-inch meter, with average water usage of 8,150 gallons per month. would increase from
17 $24.l 6 to $29.57. an increase of $5.4l. or 22.39 percent." The bill for a wastewater customer would
18 increase from $45.23 to $64.34. an increase of$l9.l l. or 42.23 percent."
19 RUC() proposed a Rate Case Expense of $400.000 for both Divisions. recovered through a
20 surcharge collected over four years.5°
21 RUCO opposed the Company's proposed ARAM. RUCO asserted that there are other adjustor
22 mechanisms already available that would achieve similar results, such as the System Improvement
23
24 47 Ex. RUCO-5, Wastewater Division Schedule I, without formula rates.
48 Ex. RUCO-5, Wastewater Division Schedule I, with / formula rates.
25 4<> Ex. Ruco-7, p. 45.
50 Ex. RUCO-9, p. 2.
51 Ex. RUCO-9. p. 2.
26
52 Ex. RUCO4. Water Division Rate Design Schedule 2, without formula rates.
53 Ex. RUCO4. Wastewater Division Rate Design Schedule 2, with formula rates.
27
5* Ex. RUCO-4, Water Division Rate Design Schedule 2, without formula rates.
55 Ex. RUCO-4, Wastewater Division Rate Design Schedule 2, with formula rates.
28 56 Ex. RUCO-7, P. 13.
82134
27 DECISION NO. __

DOCKET NO. W-01427A-25-0126, ET AL.
l Benefit ("SIB"); that the proposed ARAM does not comport with the Commission's Policy, and that
2 the ARAM'sdead band guarantees a minimum return to the Company and shifts the risks to ratepayers.
3 If the Commission adopts the ARAM. RUC() offered proposals for modifications to the ARAM.57
4 4. Contested Issues Prior to Settlement Agreement
5 Unresolved issues after submission of the parlies` Direct Testimonies consisted of Rate Base
6 disagreements. including treatment of Post-Test Year Plant. AFUDC. Cash Working Capital. lag days
7 for Interest Expense, Advances in Aid of Construction. and Contributions in Aid of Construction
8 adjustments. Accumulated Depreciation Synchronization. Plant Retirements, and the Sarival WRF
9 Depreciation Deferral: Operating Expenses, including Depreciation Expense related to Plant
10 Retiremcnts. Management Fees. Water and Wastewater Testing Expenses, Income Taxes. Property
l l Taxes-Assessment Ratio, Cost of Capital, proposed Tariffs, and the proposed FRP.
12 We discuss these items in order to evaluate the reasonableness of the terms of the Settlement
13 Agreement.
14 B. Rate Base
15 The table below reflects the Rate Base elements found in each parlies` Direct Testimony for the
16 Water Division.
Rl ( ()
17 Dust Rll"ll()\ CO\IF.\\Y pnovositn Rl (O \DJlSTED STAFF \D.IlSTFD
o(R0"' o<mz'° \1).l1"§ I 1.1) FRP O(RB"'
()(R8'>"
18
Plant in Service $l75,471,36 I Sl75,l68,233 $166,885,006 $176,220,543
Less: Accumulated
19 (57,924,762) (58,449,424) (58,274,763) (58.533.524)
Depreciation
20 Net Plant in Service sl 17,546,598 SI 16,718,810 $108,610,243 sl 17,687,020
21 LESS.
Contnbullons in Aid of
$47.178.39l $47.I 78,39 I $47.178.39l $50,l08.475
22 Construction ("ClA(")
Less: Accumululed
De I recialion (9,426,295) (9,426,295) (9,426,295) (9,507,686)
23
NetCIAC $37,752,096 $37.742,096 $37,752,096 $40,600,789
24
Advances in Aid of l
$6,827,33 I $6.827,33 I $6,827,331 $5,646,965
25 Conslrucuon ("AlAC")
i
26
57 Ex. RU(IO3, p. 1.
is Ex. A-l l. Water Schedule B-2, p. I.
27
Sf) Ex. RU(O-5, Water Non-Formula Based Schedule 3.
toEx. RlJCO-5. Water Formula Based Schedule 3.
28 61 Ex. S3. Direct Schedule MM-W-3.
28 DECISION NO. 82134

DOCKET NO. W-0I 427A-25-0126, ET AL.
I
Customer Meter Do o I sits llllllllll $252,360 $252,360 $252,360
Customer Security De I slls $532,699 $280,339 $280,339 $280,339
2
Accumulated Delbrrcd Income
3 sl .205.972 $1,205,972 $1,205,972 $425,800
Tax
Accumulated Deferred Income
4 $80,748 $80,748 $80,748 $80,748
Tax Credll
Lxcess Accumulated Deferred
5 $1,505,l47 $l,505,l47 Sl,505,147 $1,505,147
Income Taxes
6
PLUS:
7 Pre a merits $273,548 $273,548 $273,548 $273,548
Workmen Ca Nal ($150.450 I 1$353.568) ($322444 ) (Sl 3'),62*))
8 T()lAL OCRB/FYRB $69,765,704 $68.734,797 $60,657,355 $69,028,79 I
The table below reflects the Rate Base elements found in each parlies` Direct Testimony for the
9
Wastewater Division.
10
Rl(O
C()\ll' iv Rl i (O .\l).ll STl:D I STAFF \l).llSTI:l)
I I m:s<Rlprlo\ \l).ll STEI) lRP
l'R()l'()SI£l) ocRn°' CxRlx"' ()( RB"
O( RB"
12 Plant in Service $273,971,889 $273,939,450 $272,639,32 l $268,004,50 I
l,ess: Accumulated De 0 rcciation ($62.157,853) ($64,533,654) (64,484,646)) ($62,003,504)
1 3 Net Plant in Service szn 1,814,036 $209,405,796 $208,l4,675 $206,000,997
14 LESS:
Conlrlbulions in And of
15 $89,687,625 589.687.6925 $89,687,625 $86,270,883
Construction ("ClAC")
Less:Accumulated
16 ($20,279,742) ($20.279.742) ($20,279,742) ($20,083,978)
Amorii:alion
Net CIAC $69,407,884 $69,407,884 $69,407,884 $66, l 86,906
17
Advances in Ald of Conslnlction
18 $l 1,726,776 SI 1,726,776 sl 1,726,776 $9,282,824
( "AlA( ")
19
Accumulated Deferred Income
$228,048 $228,048 $228,048 51,147,284
Tax
20
Fxcess Accumulated Dcibrrcd
$l.612.052 $1,612,052 $l,6I2,052 s I ,6 I 2,052
Income Taxes
21
PLUS
22
Sanval Depreclation Deferral
$5,204,3 I0 $0 $5,204,3 10
Accounting Order
23
Unamortized Finance Char es $143,964 IIIIIIIMIIIIIIMIIIIIIIEM
24 Pre a merits ($42,101) (542, 101 ) ($42,l01) ($42,101 )
Work lf (`a llal ($258,291 ) ($62 I ,409) ($6l6,8l5) ($240,96 l )
25 TOTAL OCRB/FVRB $133,887,159 $125,767,526 $l24,52 I ,000 $132,693,180
26
sz Ex. A-I I. Wastewater Schedule B-2. p. I.
27
"3 Ex. RUCO-5. Wastewater NonFormula Based Schedule 3.
'** Ex. RUCO-5, Wastewater Formula Based Schedule 3.
28
"5 Ex. S3. Direct Schedule MM-WW3.
29 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126, ET AL.
I I. Liberty Litchtields Direct Testimony Adjustments to Test Year Rate Base
2 a. Water Division"
3 In its Direct Testimony, Liberty Litchfield proposed seven adjustments to its pre-adjustment
4 test year Rate Base amounts. increasing Rate Base by $20.017.l77. from $49.748,526 to $69.765.703.
5 Gross Plant in Service-Liberty Litchlields pre-adjustment original cost for Plant in Service
6 for the test year was $l 54.3l l. 001. The Company made the follow / ing five adjustments:
7 . Allocated Corporate Plant: Liberty Litchfield proposed the addition of $8,229,771 to
8 Plant in Service to reflect the corporate plant allocated to Liberty Litchfield.
9 . PTYP: The Company proposed the inclusion of $8.283,228 in PTYP. Liberty
10 Litchfield stated that its adjustment reflects revenue neutral plant necessary to serve
I I the year-end number of customers and expected to be placed into service within / 12
12 months of the of the test year.
13 . Capitalized Overhead: the Company stated that its proposed capitalized INDOH
14 adjustment of($l .828,943) Plant-in-Service is consistent with the findings of Decision
15 No. 81361 . which permitted a 21 percent capitalized overhead rate related to allocated
16 corporate shared services for the West Region and 14 percent for APUC.
17 • Construction Work-in-Process ("CWlP"): the Company proposed the transfer of plant
18 that was used and useful at the end of test year from CWIP to Plant-in-Service in an
19 amount of$7.428,064.
20 . Reconciliation of Plant-in-Service: Liberty Litchfield stated that this adjustment of
21 ($95 l .770) reflects the reconciliation of the Conlpany's Plant-in-Service to the amount
22 recorded at the end of the test year.
23 Accumulated Depreciation-The Company proposed an addition of $155,500 to Accumulated
24 Depreciation related to the five adjustments to Gross Plant-in-Service. Liberty Litchfield noted that the
25 Accumulated Depreciation amount from the end of the last test year through to the end of the present
26 test year used the half-year convention for depreciation.
27
28 of Ex. A-I I. p. 4 - l 0: Water Division Schedules B2, pages I .- 8.1.
30 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
l Contributions in Aid of Construction ("ClAC") and Accumulated Amortization-The
2 Company proposed to increase its test year CIAC by $71 1.810 from $46.466.580 to $47,l 78.39I and
3 its related Accumulated Amortization by ($l.496,822). from ($7.929.473) to ($9,426,295) to reflect
4 the reconciled balances from the last test year.
5 Advances in Aid of Construction ("AIAC") The Companyls adjustment to AIAC reflected a
6 reconciled balance of $6.827.33 l . a $506.509 increase over the test year balance of $6.320.823.
7 Accumulated Deferred Income Taxes ("ADulT")-Liberty Litchfield's adjustment to ADIT is
8 based on the timing difference between book and tax depreciation through December 31, 2024. This
9 resulted in adjusted ADIT of$I.2()5.972. an increase of$l.l 15.735 over test year ADIT of$90.236.
10 Excess Accumulated Deferred Income Taxes ("EADIT")-Thc Company's proposed EADIT
l l balance of$I .505.147 shows no adjustment to that of the prior test year.
12 Working Capital-Liberty Litchfield stated that its Cash Working Capital Allowance is based
13 on a Lead/Lag Study completed by the Company. which determines the revenue and expense lags that
14 are then applied (on a weighted basis) to the Companys proposed Operating Expenses. Liberty
15 Litchfield proposed a Working Capital in the amount of$I 50,450 based on the findings ofits Study.
16 b. Wastewater Division67
17 In its Direct Testimony. Liberty Litchfield proposed eight adjustments to its pre-adjustment test
18 year Rate Base amounts. increasing Rate Base by $l4.44l.385. from $1 19.445.773 to $l 33.887,159.
19 Gross Plant in Service-Liberty Litchfields pre-adjustment original cost for Plant in Service
20 for the test year was $259,436,89l. The Company made the following five adjustments:
2] . Allocated Corporate Plant: Liberty Litchfield proposed the addition of$l 1.840,509 to
22 Plant in Service to reflect the corporate plant allocated to Liberty Litchfield.
23 . PTYP: The Company proposed the inclusion of $ I .300.129 in PTYP. Liberty
24 Litchfield stated that its adjustment reflected revenue neutral plant necessary to serve
25 the year-end number of customers and expected to be placed into service within 12
26 months of the test year.
27
28 be Ex. A-l l. p. 4 - 10. Wastewater Division Schedules B-2, pages l - 8.1.
31 DECISION NO. 82134

DOCKET NO. W-0I 427A-25-0126. ET AL.
I . Capitalized Overhead: the Company stated that its proposed capitalized INDOH-
2 related adjustment of($I.29l.306) was I consistent with the findings of Decision No.
3 81361, which permitted a 2] percent capitalized overhead rate related to allocated
4 corporate shared services for the West Region and 14 percent for APUC.
5 . CWIP: the Company proposed the transfer of plant that was used and useful at the end
6 of test year fromCWIP to Plant-in-Service in the amount of $2.662.283.
7 . Reconciliation of Plant-in-Service: Liberty Litchfield stated that this adjustment of
8 $23,383 reflected the reconciliation of the Companys Plant-in-Service to the amount
9 recordedat the end of the test year.
10 Accumulated Depreciation-The Company proposed $62.157.853 in additional Accumulated
l l Depreciation related to the five adjustments to Gross Plant-in-Service. Liberty Litchfield noted that the
12 Accumulated Depreciation amount from the end of the last test year through the end of the present test
13 year used the half-year convention for depreciation.
14 CIAC and Accumulated Amortization-The Company proposed to adjust its test year CIAC by
15 $5.I95.255. from $84.492.37() to $89.687.625. and to adjust its related Accumulated Amortization by
16 ($I .875,34()). from ($18.404.402) to ($2().279.742) to reflect the reconciled balances from the last test
17 year.
18 Q-The Companys adjustment to AlAC reflects a reconciled balance of$l 1.726.776. a
19 $68.l 6l increase over the test year balance of$l1.658.616.
20 11_ Liberty Litchfieldls adjustment to ADlT is based on the timing difference between
21 book and tax depreciation through December 31. 2024. This resulted in adjusted ADIT of $228.048.
22 an increase of $257,559 over test year ADlT of($29.5 l I).
23 §/_¢ -The Companys proposed EADlT balance of $l.612,052 showed no adjustment to
24 that of the prior test year.
25 Sarival Depreciation Deferral Accounting Order-the Company noted that this adjustment of
26 $5.204.310 reflected the Rate Base adjustment related to the deferred debit approved in Decision No.
27 80122.
28 Working Capital--The Company stated that its Cash Working Capital Allowance is based on
32 DECISION NO. 82134

DOCKET NO. W-0I 427A-25-0126. ET AL.
I its Lead/Lag Study and proposed a Working Capital amount of $258,291 .
2 2. Staffs Direct Testimony Recommended Rate Base Adjustments
3 a. Water"
4 For Liberty L itch field s Water Division. Staff recommended an OCRB/FVRB of $69.028.79l.
5 which is $736.913 less than the (.ompany's proposed $69,765,704.
6 Reclassification of Wastewater Plant to Water Plant" - Staffs review of documentation
7 provided by Liberty Litchfield found plant that required reclassification from the Wastewater Division
8 to the appropriate plant accounts in the Water Division. This reclassification results in an increase in
9 Plant-in-Service for the Water Division of$ I .355.386 and a decrease to the Wastewater Division Plant-
10 in-Service in a corresponding amount.
I I Plant Removals - Staff noted that it found plant listed that was no longer used and useful. had
12 been incorrectly classified. or otherwise inappropriate for inclusion in Rate Base. Staff asserts that
13 remote / ing these items ensured that only plant actively serving customers is included in Plant-in-Service.
14 Staff recommended a decrease of $l 16.924 to the Company's proposed Water Division Plant-in-
15 Service.
16 Corporate Plant Additions and Removals - Staff explained that "corporate plant consists of
17 shared assets that support the utility and the affiliates such as office facilities, administrative systems,
18 and customer platforms. Because these items are not dedicated to a specific system. Staff reviews the
19 reasonableness and prudency of them separately. and that they are properly allocated for inclusion in
20 rate base..,70 Based on Staffs review. Staff recommended an increase to the Water Division Plant-in-
21 Service of$l 0.0l I.
22 PTYP Adjustments - According to Staff. Liberty Litchfield proposed a total for PTYP additions
23 through December 3 I , 2025, of$8,046,963. Staff noted that its adjustment for PTYP is based on a site
24 inspection and information gathered during the analysis of the Rate Application, as reflected in the
25 Direct Testimony ofMs. Lee, and recommended an increase to PTYP of $452.907.
26
"8 Ex. S-3, Direct SchedulesMMW-I through MMW-9.
27 °° Staff notes that some of the adjustments in Mr. Malone's Rate Base testimony will differ from that of Staff engineering
witness. Eunyoung Lee due to the inclusion of lndirect Overhead in Mr. Malone's schedules.
28 70 Ex. S3. p. 12.
33 DECISION NO. _82134

DOCKET NO. W-01427A-25-0126. ET Al..
I Corporate PYTP - Staff noted that the Company is proposing a total of $1.234.029 for
2 Corporate PTYP additions through December 3 I . 2025. related to Computers and Software. Based on
3 the information gathered by Staff during the Rate Application process. Stalfrecommended an increase
4 to Plant-in-Service of$2 l 8.447. for a total Corporate PlYP of$l.452.476.
5 AFUDC - Staff explained that:
6 AFUDC represents the financing or carrying cost during the construction of long-term
assets and is a return tied to the monies that are associated with the project. Because these
7 assets are not yet providing service. AFUDC is capitalized to plant and recovered over time
through depreciation. AFUDC must be accurately recorded and supported to ensure only
8 proper amounts are included in rate base. NARUC criteria for recording AFUDC during
various periods is that AFUDC should only be accrued during active construction.7'
9
Staff related that based on information provided by the Company. Sta ff found that the Company
10 was compounding AFUDC in a manner not approved by prior Commission Decisions for Liberty
l l Litchfield. Staff also found that Liberty / L itch field s AFUDC calculations included the capitalized
12 overhead/INDOH prior to making the adjustments in accordance with 1 the Settlement Agreement that
13 was approved by the Commission in Decision No. 81361. Based on this information. Staff
14 recommended that all AFUDC. $915.088. be removed."
AFUDC / PTYP - For the AFUDC related to PTYP. Staff stated that it recommends the same
16 treatment as AFUDC noted above. Thus. Staff recommends that AFUDC related to PTYP be removed.
17 reflecting a reduction of $255.556.
' j CIAC - Staff stated that during its review of the information related to CIAC provided by the
; Company, Staff identified several discrepancies in contributed plant activity and accumulated
0 amortization. Staff recommended corrections to remove incorrectly recorded contributed plant and
21 incorporate omitted contributed plant. and to adjust prior-year CIAC balances so that the roll forward
22 aligns with the Companyls plant records and general ledger." Staff explained that its recommendations
23 apply the appropriate amortization rates and align corrected net CIAC balances. Staff asserted that its
24 revisions result in corrected net CIAC balances reflecting accurate contributed plant activity and
22 properly calculated accumulated amortization. As such. Staff recommended a net CIAC increase of
27 71 Ex. S3. p. 14.
7 Ex. s3. p. is.
28 73 Ex. S3. p. 16.
34 DECISION NO. 82134

DOCKET NO. W-0I427A-25-0I 26, ET AL.
I $2,242.422.74
2 CIAC - PTY Additions - Staff made adjustments to correct the CIAC PTY balances and
3 accumulated amortization. Staff asserted that these revised amounts ensure that only the Company-
4 funded portion of PTYP is included in Rate Base. As a result. Staff recommended an increase to not
5 CIAC 0f$593.3()3.75
6 Unsupported Plant - Staff identified a plant addition recorded to water utility plant that lacked
7 an invoice or other verifiable evidence. thus. Staff concluded that the plant addition is unsupported.
8 Consistent with Staff practice, when a plant addition lacks support. Staff assigns 10 percent of the
9 disallowed amount to CIAC and includes the plant addition in Plant-in-Service. subject to verification
l() by Staff that the plant is used and useful in the provision of service. Due to the unsupported plant
l I addition. Staff recommended an increase to gross CIAC 0f$12,968.76
12 AIAC - During its review, Staff identified certain customer advances that had been refunded
13 or converted to non-refundable contributions but had remained in AIAC, while 1 other reconciliation
14 items related to prior rate case treatment and ledger activity were not reflected in the Companys
15 schedules. Accordingly. Staff recommended decreasing AIAC by $1.180.367. from $6.827.33 I to
16 $5.646.965.77
17 ADIT -Staff reviewed the Companys ADIT balances and recalculated ADIT using Staffs
18 recommended Plant-in-Service. CIAC, AFUDC and PTYP balances for each division. Staff
19 recommended adjusting ADIT to reflect updated book-tax timing differences resulting from Staffs
20 recommended Rate Base adjustments. Staff contended that this ensures Rate Base reflects only
21 investor-supplied capital and prevents customers from paying a return on deferred tax balances. As
22 such. Staff recommended a decrease to ADIT of$780,l 72. from $1,205,972 to $425.800.78
23 Allowance for Cash Working Capital - Staff evaluated Liberty Litchfields Lead/Lag Study to
24 ensure that only appropriate and reasonable working capital requirements were included in Rate Base,
25 and that the net lag days are accurate and reasonable. Based on Staffs review. Staff recommended
26
74 Ex. S-3, Direct Schedules MM-W-4 andMM-W-7a.
75 Ex. S-3. Direct Schedules MM-W4 and MM-W-7b.
27 76 Ex. S3. Direct Schedules MMW-4 and MMW-7c.
77 Ex. S-3. Direct Schedules MMW4 and MMW-7d.
28 7s Ex. S-3. Direct Schedule MMW4 and MMW-7e.
35 DECISIONNO. 82134

DOCKET NO. W-01427A-25-0126, ET AL.
I adjustments to reflect test-year adjusted expenses and to exclude items that were not properly included
2 in the Lead/Lag Study. Staff recommended an decrease to Cash Working Capital of($l 0,82 I) from the
3 Companys proposed reduction of($l 50,450) for a net reduction of($l 39.629).79
4 Accumulated Depreciation - Staff updated Accumulated Depreciation to reflect the combined
5 impact of Staflls recommended plant-related adjustments. However. Staff stated that upon review of
6 the Company's Accumulated Depreciation schedules. Stafffbund that Liberty Litchfield had not been
7 including Plant Retirements since 2019.xo According to Staff. the Company explained that the failure
8 to properly adjust retirements was due to an accounting software issue. In Staff's Direct Testimony,
9 based on the information provided to Staff regarding the retirements, Staff recommended an increase
10 to Accumulated Depreciation of$6()8.762. from $57.924,762 to $58.533.524. Staffalso recommended
l l that the Company properly record plant retirements for future rate proceedings.8]
12 b. Wastewater82
13 Reclassification of Wastewater Plant to Water Plant - Staff notes that its review of
14 documentation provided by the Company indicated that certain plant recorded in Wastewater Division
15 accounts required reclassification to appropriate Water Division accounts. Thus. Staff recommends a
16 decrease to wastewater Plant-in-Service of$l,355,386.
17 Plant Reclassification - Staff noted that based on the testimony ofMs. Lee, certain plant needed
18 to be reclassified to a different NARUC account. However. the reclassification has no effect on total
19 Plant-in-Service.
20 Removals - Staff found that some plant items were either no longer used and useful. incorrectly
21 classified. or otherwise inappropriate for inclusion in Rate Base. The resulting adjustments result in a
22 decrease to Plant-in-Service of$78l.074.
23 Corporate Plant Additions and Removals - Based on the information gathered by Ms. Lee
24 during her Rate Application analysis, Staff recommended an increase to Plant-in-Service of$l4.399
25 related to Corporate Plant allocations.
26
7<> Ex. S-3, Direct Schedule MMW-4 and M M - W 8 a .
27
80 Ex. S-3, P. 21.
81 Ex. S-3. p. 22.
8"
2 8 Ex. S-3, Direct Schedules MM-S-4 and MM-S-5a through MM-S9.
82134
36 DECISION NO.

DOCKET NO. W-01427A-25-0126, ET AL.
I PTYP Adjustments -. Stalllrecommended a decrease to Plant-in-Service for PTYP ofl$4 I 8.648
2 because several PlYP projects had not yet been initiated and should be excluded."
3 Corporate PTYP - Staff recommended an increase to Plant-in-Service for Corporate PTYP of
4 $314.215.
5 AFUDC - Staff recommended removal of AFUDC. thereby reducing Plant-in-Service by
6 $3.690.801.
7 CIAC - Staff recommended a net CIAC decrease of $6. l 53.547.
8 CIAC PTY - Staff recommended an increase to net CIAC PTY additions of $2.932.57().
9 AIAC - Staff recommended adjustments to AIAC to reflect only supported. refundable
l() advances outstanding as of the end of test year period. Staff recommended a decrease to AIAC by
I I $2.443.953. from $1 1.726.776 to $9.282.824.
12 - Staff recommended an increase in ADIT of$9I 9,236. from $228.048 to $1 .147,284.
13 INDOI I - Staff explained that capitalized indirect overhead represents non-direct costs. such as
14 administrative. management, or support functions, that are allocated to construction projects. Staff
15 recommended reducing INDOH related to a specific project. where the overhead component represents
16 an unreasonably large portion of the project cost, and did not follow what was approved by the
17 Commission in Decision No. 81361. Staff asserted that removing unsupported portions of plant ensures
18 only reasonable, used-and-useful costs are included in Rate Base. Staff recommended reducing
19 INDOH. which reduces Plant-in Service by $50.094.
20 Allowance for Cash Working Capital - Staff recommended an increase to Cash Working
21 Capital of$l7,33I. from a reduction of $258.29 I to a reduction of $240.961.
22 Unamortized Finance Charges - Staff noted that it identified that the Company included
23 unamortized finance charges in Rate Base. which charges represent deferred financing costs that have
24 not been expensed over the life of the loan. As such. Staff recommended removing the unamortized
25 finance charges because the Company secured the loans from APUC and affiliates. Staff recommends
26 decreasing unamortized finance charges by $143,964. from $I 43.964 to $0.
27
28 "Ex.s-7,p.44.
37 DECISION NO. _82134

DOCKET NO. W-01427A-25-0126. ET AL.
I Accumulated Depreciation - Staff recommended a decrease in Accumulated Depreciation of
2 $154.349. from $62.l57.853 to $62.003.504. Additionally. Staff recommended that the Company
3 properly record the Accumulated Depreciation related to Plant Retirements for future rate proceedings.
4 Sarival Depreciation Dclerral Accounting Order - Staff stated that it reviewed the Sarival
5 Depreciation Deferral Accounting Order reflected in Decision No. 8()l22. Staff reviewed the
6 Companys proposed addition of $5.204.310 related to Depreciation Expense deferral in Rate Base to
7 ensure that the proposal met the terms of that Decision. Staff agreed with the Company's proposed
8 treatment to include $5,2()4.3 l0 into Rate Base.
9 3. RU(()ls Direct Testimony Proposed Rate Base Adjustments
10 a. Water and Wastewater
I l In its Direct Testimony for the Water Division. RUC()ls proposed adjustments that resulted in
12 a net decrease of $l.030,907 the Companys proposed FVRB of $69,765.704 for a total proposed
13 adjusted Rate Base of $68.734.797. RUCOs adjustments include: I) PTYP Retirements. 2)
14 Accumulated Depreciation related to PTYP, 3) Accumulated Depreciation to reflect Depreciation
15 Annualization. and 4) Cash Working CapitaI.'*"
16 PTYP and Related Accumulated Depreciation -In its Direct Testimony, schedules for the
17 scenario with no approved FRP. RIJCO did not make any changes to Liberty Litchlieldls proposed
18 PTYP and the related Accumulated Depreciation. For RllC()s Direct Testimony schedules related to
19 the proposed FRP-based rates for the Water Division. RUCO removed $8.283,228 and related
20 Accumulated Depreciation of $174.66I. and $I.300.I29 for PTYP and $49.008 for the related
21 Accumulated Depreciation. For the Wastewater Division. RUCO removed $l.300.l29 for PTYP and
22 $49.008 in related accumulated depreciation. RUCO explained that it made these adjustments because
23 Liberty Litchfields proposed PTYP additions and related Accumulated Depreciation can be accounted
24 for in the Companys ARAM Annual Update, init is appropriate to do so.
25 However. for its schedules in the event a FRP is adopted. RUCO proposed to remove the
26 Companys request for 12 months ofPIYP because that plant could be included in Liberty Litchlields
27
28 XI Ex. RUCO-5. p. 7, Table 2.
38 DECISION NO. 82134

DOCKET NO. W-0 I427A-25-0126, ET AL.
I first ARAM Annual Update.
2 PTYP Retircments - RUCO observed that Liberty Litchfield failed to account for any plant
3 retirements from the beginning of202l and continuing through to the present. RUC() pointed out that
4 the NARUC Uniform System of Accounts ("USoA") requires that a company record a plant retirement
5 by removing the original cost and accumulated depreciation of the plant asset from the appropriate
6 accounts. RUCO expressed concern that this failure could indicate that the Company may not be
7 following the accounting procedures outlined in the NARUC UsoA. which under Commission rules
8 the Company is required to follow."
9 RUCO asserted that if plant retirements are not properly recorded. "the plant accounts will be
10 over-stated which leads to incorrect information being provided to parties. More importantly,
l l depreciation expense is calculated based on the plant that is actually used to serve customers. When
12 retirements are not removed. ratepayers will pay depreciation expense on plant that is no longer serving
13 thenl."so Based on information provided by the Company, RUCO stated that it normalized the
14 retirements beginning with the Companys last rate case decided in 20]787 through to 2024. As such. I\
15 RUCO proposed decreasing Plant in Service by $303.l27 for the Water Division and $32.440 for the
16 Wastewater Division.88
17 Accumulated Depreciation Svnchronized to Depreciation Annualization - RUCO noted that
18 Liberty Litchfield made an adjustment to annualize test year Depreciation Expense. which increased
19 Depreciation and Amortization Expense by $62 I .5 I 8 for the Water Division and by $I.420.689 for the
20 Wastewater Division. However. RUC() observed that the Company did not make a corresponding
21 adjustment to annualize test year Accumulated Depreciation. RUCO asserted that the failure to make
22 a corresponding adjustment is improperly one-sided because it violates the matching principle of
23 accounting and benefits the Company at the expense of ratepayers." RUCO recommended a
24 synchronizing annualization adjustment for Accumulated Depreciation in the amount of $827,788 for
25 the Water Division and $2,408,240 for the Wastewater Division. which RUC() asserted more
26
85 Ex. RUCO-5. p. 20.
86 Ex. RUCO5, P. 22.
27
xv Decision No. 76799 (August 15, 2018).
88 Ex. RUCO5, P. 23.
28 so Ex. RL!CO5. pp. 26 - 27.
39 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
I accurately reflects normal. on-going operations."
2 Cash Working Capital. Lau Days for Interest Expense on Long-Term Debt - RUCO remarked
3 that Liberty Litchfield proposes to apply 50 lag days for the Interest Expense on long-term debt. RUCO
4 noted that "most utilities typically use / lag days ranging from 74.50 to 91 .25 lag days.9' RUCO asserted
5 that the fewer the number ollag days used by the Company for Interest Expense on long-term debt. the
I 6 higher its customers rates will be.
7 RUCO also expressed its belief that the Company's proposed 50 lag days is abnormally low
8 because it is based on a related party transaction-the lender is Liberty Litchfields affiliate Liberty
9 Utilities. This relationship. according to RUCO, should be subject to lurlher scrutiny since it is not an
10 arms-length transaction.
l l Noting that in the Company's last rate case the Commission approved 90.25 lag days for Interest
12 Expense. RUCO proposed that lag days for the Company's Interest Expense on long-term debt should
13 be 91.25 days.92
14 Sarival WRF Depreciation Expense Deferral - RUC() proposed that the deferred Depreciation
15 Expense for Sarival WRF be removed from Rate Base and instead recovered on the Income Statement
16 as an Amortization Expense.
17 RIIC() explained that a deferred expense is an Operating Expense "that has been included in
18 the income statement of a prior year and a regulated utility asks and receives Commission approval to
19 defer that expense and recover it through rates over future years."93 RUCO asserted that approval of a
20 deferred expense represents "extraordinary treatment" of that expense, which is why a regulated utility
21 must first receive Commission approval.°" RUCO claimed that the Company's Wastewater Rate
22 Application seeks to defer its 2024 and 2025 Depreciation Expense on the Sarival WRF with a carrying
23 cost calculated using a cost of debt ol4. I9 percent. but did not request that its "extraordinary treatment"
24 of the Depreciation Expense be included in Rate Base. Nor did the Commissionls Decision No. 80122
25 that authorized the Accounting Order state that the deferred depreciation expense should be included
26
90 Ex. RUCO5, pp. 29 32.
°' Ex. RU(O-5. p. 33.
27
oz Ex. RUCO-5. P. 33.
OF Ex. RUCO-5, p. 36.
28 <>4 Ex. RUCO5, p. 36.
40 DECISION NO. 82134 l
i

DOCKET NO. W-0I427A-25-0126. ET AL.
I in Rate Base.
2 RUCO maintained that not only is Liberty Litchfield proposing that the deferred depreciation
3 expense be included in Rate Base. but that the Company has not explained why it changed its original
4 proposal of calculating the carrying cost using only debt as stated in its Accounting Order application.
5 to now calculating the carrying cost using both debt and equity / in the Wastewater Application." RUCO
6 argued that the carrying cost on the deferred asset should not include an equity component. stating:
7 [T]he Commission has approved extraordinary treatment of the depreciation expense by
allowing it to be deferred and recovered from ratepayers over future accounting periods.
8 Second. the Commission could have allowed the Company to recover the deferred
depreciation expense without any carrying cost but. instead. allowed a carrying cost
9 calculated using the weighted average cost of debt which is in addition to the extraordinary
treatment. Third. depreciation expense is not an investment and. therefore, should not
10 receive an equity return. The investments in the plant that gave rise to the deferred
depreciation expense is in rate base and will receive a full return using the Commission
I I approved equity. Depreciation is an expense and should be recovered on the income
statement. Finally. the Company did not originally request an equity return and the
12 Commission did not approve one. The Company has not provided a reason to justify
treating the depreciation expense deferral differently than the treatment approved by the
13 Commission.9
14 RUCO used the 4.19 percent authorized in Decision No. 80122 for the carrying cost for
15 RUCOs calculations and proposed decreasing the Rate Base by $5.204,3 I0 to remove the Depreciation
16 Expense deferral. Further, RUCO proposed increasing Amortization Expense by $207.85 I to reflect
17 the carrying cost using the 4.19 percent cost of debt. Finally. RUCO recommended that the
18 Depreciation deferral amounts be tracked and any over-collections be refunded to customers or be
19 treated as a regulatory liability.97
20 Unamortized Finance Charges - RUC() noted that Liberty Litchfield included $l43.964 of
21 unamortized finance charges in the Wastewater Rate Base. RUCO claimed that NARUC USoA
22 requires that these charges should be amortized over the life of the debt and included on the Income
23 Statement in the Interest Expense account. which is a "below-the-line" item to be borne by
24 shareholders." RUCO stated that it removed the $l43.964 in unamortized finance charges from the
25 Wastewater Rate Base. RUCO noted that Liberty Litchfield properly recorded the interest expense for
26
95 Ex. RUCO5. PP. 37 - 38.
27
9b Ex. RUCO-5, p. 40.
97 Ex. RUCO-5. pp. 40 - 41.
28 as Ex. RUCO5. p. 42.
41 DECISION NO. 82134

DOCKET NO. W-()l 427A-25-0126. ET AL.
I the Water Division as a below-the-line charge.
2 4. Company's Rebuttal to RUCOls Proposed Rate Base Adjustments"
3 In the Companys Rebuttal Testimony, Liberty Litchfield explained that it was responding only
4 to the adjustments proposed by RUCO unrelated to the ARAM because in the Settlement Agreement
5 the Company was proposing a Phase II proceeding focused on the proposed ARAM in the Settlement
6 Agreement. As such. the Company did not address RUCO's position on PTYP and Accumulated
7 Depreciation related to PTYP because RUC() accepted the Company's proposals if the Commission
8 does not adopt an FRP.
9 PTYP Plant Retirements - The Company stated that it does not agree with RUCOs proposed
10 Rate Base Adjustments for Plant Retirements for the Water and Wastewater Divisions. Liberty
I l Litchfield claimed that RUCO proposes to impute PTYP retirements using average activity since the
12 last rate case. The Company argued that this methodology risks removing used and useful plant from
13 Rate Base without a factual foundation. Nevertheless. Liberty Litchfield agreed to adjust its Rate Base
14 for Plant Retirements identified during discovery. As such. the Company agreed to the following Plant
15 Retirement adjustments. which are Rate Base neutral. but will result in a lower Depreciation Expense
16 on the Income Statement.'°0
17 Water Division: Plant Retirements of $569.969 inNARUC Acct. 31 l
18 . Wastewater Division: Plant Retirements of $2.45 l,55l in NARUC Acct. 371
19 According to the Company, these retirements are Rate Base neutral because the plant items
20 were fully depreciated.'°'
21 Accumulated Depreciation and Depreciation Annualization
22 Liberty Litchfield opposed RUCOs proposal to increase Accumulated Depreciation to
23 synchronize with the Company's Depreciation Annualization adjustment. The Company stated: "The
24
<><>The C`ompanys responses lo RUCO's testimony are found in the Rebuttal Testimony of Ms. Ran, Mr. Thompson. and
25 Mr. Bourassa, as well as Ms. Rao'sSettlement Testimony. inthe Company's Notice of Filing Rebuttal Testimony, Liberty
Litchfieldstates that because it had reached a "settlement in principle" with the Commission Staff. the(onlpanys Rebuttal
26 Testimony does not respond to Staffs Direct Testimony and only provides a rebuttal to RUCOs Direct Testimony. (Notice
of Filing Rebuttal Testimony, p. I.)
too Ex. A-I3. p 3.
27 lol The Company asserts: "Even if not fully retired, retirements would have a zero impact on rate base as the amount of
retirement taken from plant-in-service is taken out of accumulated depreciation per the NARUC USOA netting to a zero
28 rate base impact." Ex. A-I3. p. 3, fn. 2.
42 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
l Rules of this Commission allow for proforma adjustments to the test year to obtain a more realistic
2 relationship between revenues, expenses. and rate base on a going forward basis. RUCOs adjustment
3 does not achieve that result.102Liberty Litchfield contended that RUCOs synchronization adjustment
4 would improperly reduce Rate Base before the depreciation impacts would be realized by the
5 Company. creating an imbalance.103
6 Working Capital - Liberty Litchfield disagreed with RUC()s adjustments to Cash Working
7 Capital for the Water and Wastewater [)visions that arise from RIlCOs use of 91 lag days for
8 determining Working Capital related to Interest Expense on long-tcrm debt. The Company stated that
9 its proposal to use 50 lag days reflects the term sheet submitted by Liberty Litchfield with the Financing
10 Application. The terms are based on a monthly payment. which is what the Company applied when
I l determining the appropriate number olag days. The Company noted that both Staff and RUCO have
12 recommended approval of the Financing Application. and the "inclusion in the capital structure. which
13 reduces the weighted average cost of capital. lt is inconsistent to accept these benefits of the proposed
14 financing while rejecting other terms of the same financing."'°"
15 Sarival WRF Depreciation Expense Deferral - Liberty Litchfield disputed RUCOs evaluation
16 of the Sarival Accounting Order. The Company noted that the August 2024 Sarival Accounting Order
17 allowed the Company to defer Depreciation Expense for the Sarival WRF. which had been placed into
18 service in March 2024. In Decision No. 80122. the Commission placed the following conditions on the
19 deferral:
20 . That the cost deferral would not include any capitalized overhead of AFUDC for the
21 Sarival WRF plant:
22 . That the costs eligible for deferral would be limited to Depreciation Expense subject to
23 the removal of capitalized overhead and AFUDC,
24 • That the cut-off point for including Sarival WRF project costs in the deferral would be
25 December 3 I. 2024: and
26 . That the Commission specifically reserves any prudency finding for the Sarival plant
27 102 Ex. A-I3. p. 4. citing A.A.( RI4-2l03(3)(i).
103 Ex. A-13. p. 4.
28 10-1Ex. AI3, p. 6.
43 DECISION NO. 82134

DOCKET NO. W-014277-25-0126. ET AL.
I until the final components are reviewed within the context of the Companys general
2 rate case appIication.!°5
3 Liberty Litchfield took issue with RUCOs arguments about the exclusion of the Sarival
4 depreciation deferral from Rate Base, asserting that recovery in Ratc Base is standard treatment for any
5 asset. including a regulatory asset like deferred Depreciation Expense. The Company explained:
6 In the Accounting Order application, the Company requested carrying charges to be
recorded on the deferred expenses at a rate of4. I 9%. If approved. the deferred costs would
7 not only include deferred depreciation expenses but also carrying charges on the deferred
costs at 4.l 9%. In the application. the Company noted that the recovery of the deferred
8 costs would be requested and addressed in a future Litchfield Park rate case but did not
propose a specific recovery method. Moreover. the Staff Analysis and Recommendation.
9 as well as Decision No. 80122. did not specifically address the request or authorize the
Company to accrue carrying charges on the deferred depreciation expenses. The Company
10 therefore did not accrue carrying charges on the depreciation expense. The regulatory asset
(deferred depreciation expense) is thus lower than it would have been had the Commission
I I authorized those carrying charges. The question now. is not whether to include those
carrying charges in the regulatory asset. but whether the regulatory asset should be included
12 in rate base. Normally. both regulatory assets and regulatory liabilities are reflected in rate
base. reflecting the treatment of regulatory assets in the NARUC Uniform System of
I3 Accounts.I06
14 Liberty Litchfield asserted that RUC() misunderstood the Company's request, claiming that the
15 recovery proposal outlined in the Wastewater Rate Application does not represent a change in the
16 Company's proposal from the Sarival Accounting Order application. The Company also noted that the
17 Commission had previously approved the recovery of similar regulatory assets of Liberty Litchlields
18 sister company, Liberty Black Mountain. for the Boulders Wastewater Treatment Plant. The Company
19 noted that in that case. the closure costs were deferred. including depreciation, and both pre- and post-
20 in-sen / ice AFUl)C.107 Liberty Litchfield noted that Staff agreed with the Company's proposal to I
I
21 include the Sarival Depreciation Deferral costs in Rate Base.
22 Unamortized Finance Charges for Wastewater Division - Liberty Litchfield states that it agrees
I
l
23 with RUCOls removal of the unamortized finance costs from Rate Base for the Wastewater Division.108 1
24 5. RlICOs Surrebuttal to Rate Base Rebuttal Testimony and Settlement 1
1
25 Agreement
1
26
105 Ex. A-17. p. 12. Decision No. 80122.
27
106 Ex. A-17, p. 13. (Footnotes omitted.)
107 Ex. AI7, p. 14, Decision No. 75510 (April 22, 2016).
28 108 Ex. A-I7, pp. Il- 12.
44 DECISION no. 82134

DOCKET NO. W-01427A-25-0I26. ET AL.
l Lag Davs - RUC() responded to the Company's arguments about the use of 50 lags days for
2 the calculations for Interest Expense on long-term debt. by providing a table outlining the Interest
3 Expense lag days adopted by the Commission tor other utilities. Table l to the Surrebuttal Testimony
4 of Crystal Brown reflects that in l I cases between 2010 and 2025. the Commission approved lag days
5 ranging from 74.53 to 91 .25.109RUCO explained that the Companys proposal will result in an increase
6 to Cash Working Capital and thus. an increase to Rate Base and ultimately higher rates. RUCO asserted
7 that applying 50 lag days increases Rate Base by $409.475 and creates a $46,708 increase in the
8 Revenue Requirement."0
9 Plant Retirements - Initially. RUCO clarified what it believes to be a misconception by Staff
10 and Liberty Litchfield that RUCOs proposed adjustment to retirements relates to PTYP. RUCO
I l explained that its adjustments pertain only to test year plant retirements. noting that the Company stated
12 that it made no retirements after the test year."' However. RUCO noted that the Settlement
13 Agreementl12 only reflected the Companys PTYP retirements adjustment. ignoring the fact that
14 Liberty Litchfield had not recorded any plant retirements since 2019. RUCO disputed the Signatories'
15 position in the Settlement Agreement that no further adjustments should be made for plant retirements,
16 contending:
17 [T]he Company knew it had retirements in the test year and failed to make them. claiming
that they were immaterial and onerous. RUCO also disagrees with the Settlement
18 Agreements position to treat the fully depreciated plant as plant that is no longer in service
because...the Company does not know whether or not any of the plant is still being used
19 to provide service. Additionally, the Company has not physically removed the plant and
recorded the retirements in its books and records. | 13
20
21 RUCO also disagreed with the Companyls statement that RUCOs normalization adjustment
22 risks removing used and useful plant from Rate Base without a factual foundation. RUCO responded
23 that the information provided by the Company in Staff Data Request 4.06I 14 set out factual evidence
24 that plant retirements occurred during the test year, but Liberty Litchfield failed to record them in the
25
IOO Ex. RUCO6, p. 5, Table l.
26 110 Ex. RUC()-6. pp. 5 - 6, Table 2.
ill Ex. RUCO-6. pp. 7- 8.
II! The Settlement Agreement was docketed on March 3, 2026. RUCOs Surrebuttal Testimony was docketed on March
27
16, 2026.
113 Ex. RUCO-6. p. 8.
28 114 Ex. RUCO-6, Attachment l.
82134
45 DECISION NO.

DOCKET NO. W-01427A-25-0126, ET AL.
I books. other than to reflect an adjusted test year plant retirement amount of $0.00. RUCO maintained
2 that this is an "abnormal amount."! 15 RUCO believed that it is more reasonable to adjust test year Plant
3 Retirements to reflect a normalized amount for both the Water and Wastewater Divisions.
4 RUC() related that in response to StalfData Request 4.04. Liberty Litchfield stated that in 2019
5 the Company's software malfunctioned, causing negative asset balances and that since 2019. the
6 Company had not recorded Plant Retirements. RUCO noted that in Liberty Litchtields response to
7 Staff Data Request 4.04. the Company stated that it did not propose any additional pro forma
8 retirements in its Applications. "as such an undertaking would be onerous given the substantial volume
9 of plant additions in the case and is immaterial in this rate application.""" RUCO disputed the
10 Company's explanation and noted that the Plant Retirement entries are required by the NARIIC USoA.
I I Depreciation Expense. Adjustment for Fullv Depreciated Plant - RUCO noted that in Liberty
12 Litchfields Rebuttal Testimony, the Company rejected RUCOls recommendation that plant that was
13 fully depreciated within 12 months after the test year be treated as plant that continues to provide
14 service. Instead. the Settlement Agreement reflects the Companys proposal that the $569,969 in fully
15 depreciated plant for the Water Division and the $2.45 l.55I in Tully depreciated plant for the
16 Wastewater Division be treated as PTY retirements rather than plant that continues to provide service.
17 Sarival Accounting Order - RUCO repudiated the Companys claim that it is standard
18 Commission practice to include Depreciation Expense deferrals in Rate Base. According to RUCO. the
19 Commission decides rate case issues on a case-by-case basis. In addition. the Commission has no
20 written policy on the rate making treatment for Depreciation Expense deferrals. RUC() further
21 contended that if the Commission does not explicitly approve deferred expenses in Rate Base. those
22 deferred expenses should not be included in Rate Base, rather. RUCO believed that it is more
23 appropriate in this case to recover the deferred Depreciation Expense as an Operating Expense with a
24 debt return of4.l9 percent.' 17
25 RUCO also believed that the deferral should not be included in Rate Base because it could
26 receive an equity return. RUCO stated that to allow a return on equity of a deferral is improper because
27
115 Ex. RUCO-6. p. 9.
"° Ex. RUCO-6, p. 11.
28 117 Ex. RUCO-6. pp. 16- l 7.
82134
46 DECISION NO.

DOCKET NO. W-01427A-25-0126, ET AL.
I Depreciation Expense is not an investment but "represents the portion of the plant that has been
2 returned to the investor and. therefore. because it is no longer an investment it should not receive an
3 equity / return."' 18 RUCO pointed out that Liberty Litchfield is already earning a return on equity on the
4 Sarival plant because it is already in Ratc Base. As such. RUCO claimed that ratepayers would be
5 paying the same costs twice - once through rates paid in 2024 and 2025 and again going forward
6 through the Depreciation Expense deferral.I19
7 Finally. RUCO recommended that the depreciation deferral amounts be tracked and any over-
8 collections be refunded to customers or be treated as a regulatory liability.!20
9 Synchronized Accumulated Depreciation - RUCO noted that the Companys assertion that
10 RUCO's position does not achieve a more realistic relationship between revenues, expenses. and Rate
I I Base consistent with A.A.C. RI 4-2-l03(A)(h), is reflected in the Settlement Agreement. RUCO
12 disputed this statement and continued to assert that its position regarding the synchronization of
13 Accumulated [)epreciation and Depreciation Expense is proper and comports with the matching
14 principle in accounting.
15 c. Income Statement
16 l. Operating Revenues
17 a. Water Division
18 For the Water Division. in its Application. the Company proposed test year Metered Water
19 Revenues of$l 5.967.I26 and Other Water Revenues of $l 84.885 for total test year Water Division
20 Operating Revenues of$l6. l 52.0 I I. Staff and RU(O accepted Liberty Litchfieldls proposed test year
21 revenue amounts.
22 b. Wastewater Division
23 Liberty Litchfield proposed test year Wastewater Revenues of $20.846.88 I and Miscellaneous
24 Revenues of $772.205, for total test year Wastewater Division Operating Revenues of $2I,569,086.
25 Staff and RUCO accepted Liberty Litchtieldls proposed amounts.
26
27
IIB Ex. RUCO-6, p. 17.
119Ex. RUCO-6, pp. 18 - 21; Tables 5 and 6.
28 120 Ex. RUCO-6, P. 21.
47 DECISION n o . 82134

DOCKET NO. W-0 I427A-25-0I26, ET AL.
I 2. Operating Expenses
2 a. Water Division
3 Liberty Litchfield proposed test year Operating Expenses for the Water Division off I4.8 I 6.428
4 resulting in total test year Operating Income of$I,335.583.
5 Staff recommended Operating Expenses for the Water Di\ / isis of $I4.520.404. reflecting a
6 decrease of $296,024 to the Company's proposed amount and resulting in total test year Operating
7 Income of $I.63I.606.121 StaItls adjustments reflected decreases to the Companys proposed
8 Purchased Power. Contractual Services - Management Fees, Contractual Services - Water Testing.
9 Bad Debt Expense, Depreciation!22 and Amortization Expense. and Property Taxes. Staff"s
I() adjustments increased the proposed Income Taxes and Customer Deposit Interest.
I I RUCO proposed Operating Expenses for the Water Division of $I4.529.I03. reflecting a
12 decrease of $287.325 to the Company's proposed amount and resulting in total test year Operating
13 Income of$I.622.908.123 RlICOls adjustments reflected an increase in Income Tax and a decrease to
14 Depreciation and Amortization.
15 b. Wastewater Division
16 Liberty Litchfield proposed test year Operating Expenses for the Wastewater Division of
17 $18.846.854 resulting in total test year Operating income of $2.722.232.
18 Staff recommended Operating Expenses for the Wastewater Division of$ I 8.547.471 . reflecting
19 a decrease of $299,383 to the Companys proposed amount and resulting in total test year Operating
20 Income of $3.02I.6I5.l24 Staffs adjustments reflected decreases to the Companys proposed
21 Contractual Services - Management Fees. Contractual Services - Water Testing. Bad Debt Expense.
22 Depreciation125 and Amortization Expense, and Property Taxes. Staff increased the proposed
23 Contractual Services - Other. Income Taxes and Customer Deposit Interest.
24 RUCO proposed Operating Expenses for the Wastewater Division of$l 8.803.396. reflecting a
25
121 Ex. S-4. p. 7.
26 122 In Direct Testimony, Staff indicated that it would address the erroneous plant retirements in Surrebuttal Testimony. Ex.
S-4. p. 10. However. Staff entered into the Settlement Agreement and Staff did not file Surrebuttal Testimony.
123Ex. RUCO-5, Water Schedule 12.
27
124 Ex. S4. p. 7.
125In Direct Testimony, StafTindicated that it would address the erroneous plant retirements in Surrebuttal Testimony. Ex.
28 S-4. p. 10. However. Staff entered into the Settlement Agreement and Staff did not file Surrebuttal Testimony.
48 DECISION NO. 82134

DOCKET NO. W-0I427A-25-0126, ET AL.
I decrease of $43.4658 to the Company's proposed amount and resulting in total test year Operating
2 Income of` s2.765.690.l26 RUC()ls adjustments retlect ed an increase in Income Tax and a decrease to
3 Depreciation and Amortization.
4 In its Rebuttal Testimony. the Company asserted that RUCOs adjustments to Depreciation
5 Expense. Property Tax Expense. and Income Tax Expense for the Water Division, and to Depreciation
6 and Income Tax for the Wastewater Division. represent recalculated expenses due to RUCO's proposed
7 Rate Base adjustments. The Company pointed out that these adjustments do not reflect a disagreement
8 between RUCO and the Company about the methodologies used for calculating these Operating
9 EXP€I1S€S.127
10 I). Cost of Capital ("(.`O("`)
I I I. Liberty Litchfield
12 The Company based its COC determinations on evaluations of publicly traded water and gas
13 utilities comprising the proxy group - six water utilities and nine gas utilities. Liberty Litchfield
14 acknovt / ledges that the proxy group are not directly comparable to the Company, but because it is not
15 publicly traded. Liberty Litchfield has 110 historical or market information on which to calculate
16 COC.128
17 The Company proposed a Capital Structure of 46 percent debt and 54 percent equity, which is
18 a pro forma adjustment reflecting Liberty Litchfield s requested debt financing to rebalance its Capital
19 Structure from its current 30 percent debt and 70 percent equity. In the Rate Applications Liberty
20 Litchfield proposed a weighted Cost of Debt ("COD") of 5.69 percent.
21 Liberty Litchfield stated that its Cost of Equity ("C()E") proposal is based on evaluation of: a)
22 COE estimates using a Discounted Cash Flow ("DCF") and different Risk Premium ("RP") methods.
23 including variations of the Capital Asset Pricing Model ("CAPM"). b) the economic conditions
24 expected to prevail while new rates are in effect. c) the risks associated with relatively small utilities
25
126 Ex. RUCO-5, Wastewater Schedule 12.
26
121 Ex. AI7. pp. 14 - 15. But for the Settlement Agreement, the same is trueof Staffs adjustments to these expenses.
128 Publicly traded water utilities: American States Water. American Water Works, Essential Utilities, California Water
27
Company, Middlesex Water, and York Water Company. Publicly traded gas utilities: At nos Energy Corp., Chesapeake
Utilities Corp., New Jersey Resources Corp., NiSource Inc.. Northwest Natural Holding Co.. One Gas Inc., Southwest Gas
28 Holdings. Spire Inc., and UGI Corp.
49 DECISION NO. _82134

DOCKETNO. W-01427A-25-0126. ETAL.
I like the Company that are otherwise not captured by typical COC analyses and market data of publicly
2 traded utilities. d) any financial risk associated with the amount of debt in the Company's proposed
3 Capital Structure, and, e) other specific business and operation risks facing Liberty Litchfield.129 The
4 Company concluded that application of these methodologies resulted in a COE range of 10.20 to l l .40
5 percent. Liberty Litchfield explained that based on variations in financial and business risks between
6 Liberty Litchfield and the proxy groups. the Company adopted a COE of 10.80 percent that recognizes
7 a 40-basis point risk premium for business risk and a downward 40-basis point financial risk adjustment
8 for an investment in the Company.130
9 Based on the Companys proposals. the resulting Weighted Average Cost of(apital ("WACC")
10 is as follows:I3!
l l Ratio Rate Weighted Cost
12 Debt 46.00% 5.69% 2.62%
13 Equity 54.00% 10.80% 5.83%
14 W ACC 8.45%
15 2. Staff
16 Staff calculated its recommended COE for the Company based on its evaluation of the publicly
17 traded water utilities comprising its proxy group 32Staff stated that its COE recommendation is based
18 on application of the DCF. CAPM. RP. and Comparable Earnings methodologies.!33 Staff noted that
19 this analysis applied to both the Water and Wastewater Dix r isions. 134 Using these multiple market-based
20 approaches as applied to Staffs proxy group. Staff determined a COE range of 8.96 to 9.93 percent.
21 and recommended a COE of9.45 percent.
22 Staff recommended adoption of the Companys proposed pro forma Capital Structure of 46
23 percent debt and 54 percent equity. Staff further recommended a COD of 5.49 percent rather than the
24
PQ Ex. A-l2. pp. 2- 3.
25 130 Ex. A-l2, p. 2. For purposes of the Cost of Capital Direct Testimony, the evaluation reflects the combined debt and
equity for the Company as a whole.
111 Ex. A-12, p. 3.
26
132 Publicly traded water utilities/holding companies: American States Water. American Water Works, California States
Water, Essential Utilities. H20 Water. and Middlesex Water. Staff did not include any publicly traded gas utilities in its
27 proxy group.
133 Ex. s-6, p. 3.
28 134 Ex. S-6. p. 2.
50 DECISION NO. 82134

DOCKET NO. W-01427A-25-0l26. ET AL.
I 5.69 percent proposed by the Company. stating: "Using the most recent three months of treasury yields.
2 the resulting cost of debt is 5.49. lower than the Company's proposed 5.69 percent due to the decline
3 in yields following the Companys applications...9135 Based on Staftls calculations. its recommended
4 WACC is as folIows:I3°
5 Ratio Rate Weighted Cost
6 Debt 46.00% 5.49% 2.53%
7 Equity 54.00% 9.45% 5.l0%
8 WACC 7.63%
9 3. RUCO
10 RUC() calculated its proposed COE for the Company based on its evaluation of the publicly
I I traded water utilities comprising its proxy group.137 RUCO stated that its COE recommendation is
12 based on application of the DCF. RP, and a traditional CAPM.138 Using these multiple market-based
13 approaches as applied to RUCOs proxy group. RUCO determined a COE range of 9.07 to 10.12
14 percent. and proposed a COE of 9.32 percent. RUCO noted that the key difference between RUCO's
15 proposed 9.32 percent COE and the Company's 10.80 percent COE stems from the difference in
16 applied methodologies and the Company's inclusion of gas utilities in its proxy group. 139
17 RUC() proposed the adoption of the Companys proposed pro forma Capital Structure of 46
18 percent debt and 54 percent equity and the proposed COD of 5.69 percent."'° Based on RUCOs
19 calculations. its proposed WACC without Commission adoption of an FRP is as folIows:""
20 Ratio Rate Weighted Cost
21 Debt 46.00% 5.69% 2.62%
22
23 135 Ex. S-6, p. 9.
136 Ex. s6. P. 3.
24 131 Publicly traded water utilities/holding companies: American States Water, American Water Works. California Water
Service Group. Essential Utilities, H20 America, and Middlesex Water. RUCO did not include any publicly traded gas
utilities in its proxy group.
25
138 Ex. RU(O7. p. 4.
139 In addition. RIICO stated that if the Commission adopts the Companys proposed ARAM. a downwards adjustment to
26
the ROE is necessary to match the overall lessened financial risks related to reduced regulatory lag and improved financial
predictability. In that instance. RU(O recommended a fifteen-basis point reduction in COE, from 9.41 percent to 9.26
27
percent. Ex. RU(O-7. p. 5.
140 Ex. RUCO-7, p. 3.
28 141 Ex. RUCO-7. p. 3.
51 DECISION NO. 82134

DOCKET NO. W-01427A-25-0I 26, ET AL.
I Equity 54.00% 9.32% 5.08%
2 WACC 7.70%
3 However. if the Commission approves an FRP. RUC() recommends a 15 basis point downward
4 adjustment to is proposed COE. RUCO asserted that the adoption of the ARAM lessens the financial
5 risk to the Company and the COE should reflect that reduction in risk.1442 RUCO asserted that by
6 Commission approval of the ARAM. Liberty Litchfield would have a noticeable reduction in risk
7 because they have the ability to recoup and normalize earnings. RUCO noted that the lack of an
8 adjustor. however. does not increase risk. The risk remains the SynC.143
9 4. Liberty Litchficlds Rebuttal Testimony to RUCOs Proposed COE
10 The Company asserted that RUCO's COE recommendation does not reflect the additional risk
I l of an investment in Liberty Litchfield over investment in RUCO's proxy group or a financial risk
12 adjustment recognizing the difference in capital structure of Liberty Litchfield and RUCO' s proxy
13 group."* In addition. the Company contested RUCOs use of a number of methodologies that Liberty
14 Litchfield contends inaccurately calculate the range of COE estimates. Further. the Company rejected
15 RUCOs argument that the (ompany's inclusion of gas utilities in the proxy group improperly skews
16 the figures. Liberty Litchfield stated that it included gas utilities because the sample size for water
17 utilities is small and increasing the number of utilities in the proxy group provides a more robust
18 analysis and asserted that gas utilities present a comparable risk to water utilities.14'5
19 E. Revenue Requirement Summary
20 The following table reflects the parties' Direct Testimony Revenue Requirement for the Water
21 Division.
_ Company Staff Direct Rico Direct Rl'(O Direct
22 A Plication No FRP with FRP
Adusted Rate Base $69,765,704 $69,028.79 I $68,734,797 $60,657,355 i
23 Adusted O eratin Income $l,335,583 $ l ,63 l ,606 s I ,4 I 3,004 $ I ,622,908
Current Rate of Return l.9l% 2.36% 2.06% 2.68%
24 Re l uired Rate of Return 8.45% 7.63% 7.70% 7.62%
Re I uiredO I eratin Income $5,893,283 $5,266,897 $5,292,579 $4,620,756
25
O 0 eratin c Income Deficienc $4,557,700 $3,635,290 $3,879,575 $2,997.848
26
142 Ex. RUCO7. p.
27
143 Ex. RUCO-8. pp. 12 - 13.
144 Ex. AI4. p. 3.
28 145 Ex. A14. p. 9.
52 DECISION NO. 82134

DOCKET NO. W-0 I427A-25-0126, ET AL.
GRCF 1.3610 1.3576 1.3610 1.3610
I Re l uired Revenue Increase $6,203.028 $4.935, I 85 $5,280, I 00 $4,080,070
Adusted Test Year Revenue $ I6, I 52,01 I $ I 6. I 52,01 I $ I 6, I 52,01 I $I6,I 52,0I I
2 Pro I used Annual Revenue $22.355,039 $2 I .087. I 95 $2 I ,432,1 I I $20,232,08 I
Re I uired Revenue Increase 38.40% 30.55% 32.69% 25.26%
3
The following table reflects the parlies Direct Testimony Revenue Requirement for the
4
5 Wastewater Division.
Category Company Staff Direct RUCO Direct RUCO Direct
6 A 1 Plication No FRP With FRP
Adusted Rate Base $ I 33,887, I 59 $132,693,180 $125,767,526 $l24,520,000
7 Adusted O eratin Income $2,722,232 $3,021,615 $2,765,690 $2,757,582
Current Rate of Return 2.03% 2.28% 2.20% 2.2l%
8 Re I uired Rate of Return 8.45% 7.63% 7.70% 7.62%
Re c uired O 0 eratin o Income Sl 1,309.783 $l0. 125,490 $9,684,099 $9,485,76 I
9 O I eratin Income Deficienc $8,587.55I $7,102,874 $6.918,409 $6,728, I 78
GR(F 1.3504 1.394 1.3504 1.3504
10 Re I uired Revenue Increase $I 1,596,379 $9,584,080 $9,342,4 I 8 $9,085.536
Adusted Test Year Revenue $2 I ,569,086 $21,569,086 $2 l,569,086 $2l,569.086
I I Pro I used Annual Revenue $33,165,465 $31,153,166 $30,91 1,504 $30,654,622
Re 0 uired Revenue Increase 53.76% 44.43% 43.31% 42.I 2%
12
I3 F. Cost of Service Study and Revenue Allocation
14 Liberty Litchfield conducted a Cost of Service Study ("COSS") to determine the adequacy of
15 revenues by each customer classification under both existing and proposed rates. The Company
16 explained that the COSS allocates utility plant and expenses into cost and asset functions. which are
| 7 then allocated to customer classifications. The study attempts to trace the costs associated with meeting
lg the customers' sen/ice requirements.""' Additionally. the Company noted that cost based rates can be
19 used to send an appropriate price signal to customers because the amount paid for service approximates
20 the cost to provide the service.147
21 Liberty Litchfield used the Commodity Demand Method to allocate each item providing water
22 or wastewater service to several cost functions, which are then allocated to the several customers
23 classifications served by the respective systems.148
24 In its Rate Applications, the Company calculated the COSS distribution of revenues by
25 customer class and the revenue distribution as a result of the Company / s proposed rates (discussed in
26
27 "°Ex. A-l l. P. 13.
'"Ex.A-I1.p. 14
28 148 Ex. A-l l. p. 15
53 DECISION no. 82134

DOCKET NO. W-0 I427A-25-0126. ET AL.
I Section V, below). The proposed revenue allocations are reflected in the following I tables.149
2 Water Division Rates of Return
3 Customer Class Rate of Return/Current Rates Rate of Return/Proposed Rates
4 Residential -1.29% 4.71%
5 Residential - Multi-Family 9.55% l 8.48%
6 Commercial 8.88% 17.09%
7 Irrigation 5.52% 12. 15%
8 Resale Bulk -0.97% 2.42%
9 Standpipe/Construction l 8.90% 45.04%
10 Private Fire -7.48% -0.20%
I I
Wastewater Division Rates of Return
12 Customer Class Operating Margin Under Rate of Return/Proposed Rates
13
Current Rates
14
Residential 0.05% 5.40%
15
Residential - Multi-Family I 1.71% 22.64%
16
Commercial 9.91% 2l.06%
17
Wigwam Resort 3.47% 12. 15%
18
Schools -5.42% -3.88%
19
Comparison of Proposed Revenue Distribution - Water Division
20
Customer Class Indicated % of C OSS Revenues as % of Proposed
21
COSS Revenues Proposed Revenues
22
Revenues
23
Residential $14.334.141 64.12% $12.265.879 54.87%
24
Residential - Multi-Family $809.l57 3.62% $1 . l 79,265 5.28%
25
Commercial $2,120,487 9.49% $2.968.589 13.28%
26
Irrigation $4,722,537 21.13% $5,553,590 24.84%
27
28 "°Ex.AII,pp.20-21.
54 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126, ET AL.
I Resale Bulk $218.270 0.29% $ I 56,423 0.70%
2 Standpipe/Construction $65.l6 I 0.29% $163.828 0.73%
3 Private Fire $85, I 86 0.38% $67,664 0.30%
4 TOTAL $22,355,039 100.00% $22,355,039 100.00%
5 Comparison of Proposed Revenue Distributions - Wastewater Division
6 Customer Class Indicated % of COSS Revenues as % of Proposed
7 COSS Revenues Revenues Proposed Revenues
8 Residential $25,I 50.652 75.91% $21.1 14.59 I 63.66%
9 Residential - Multi-Family $2,063,936 6.20% $3,758,635 l 1.33%
I()
Commercial $4,425,650 13.30% $7,63 I .083 23.01%
1 1 Wigwam Resort $273,447 0.82% $306,I 19 0.92%
12
Schools $I.25 l.780 3.76% $355,036 I .07%
13
TOTAL $33,l65,465 100.00% $33,165,465 l 00.00%
14
Liberty Litchfield noted that its proposed rate designs in the Rate Applications do not recover
15 revenues exactly as suggested by the COSS because although the COSS "is a useful tool in designing
16 rates, other consideration are factored into the design oI rates.l50
17 Staff stated that it did not perform an independent COSS. Staff noted that after reviewing the
18 water and wastewater COSSs, Staff concluded that Liberty Litchfield used a methodology generally
19 accepted in the industry and developed the allocation factors appropriately. Staff also concluded that.
20 based on the evaluation of the COSS model used by the Company, the results of the COSS are
21 satisfactory.I5'
22 RUCO stated that it reviewed Liberty Litchfields COSS and did not make any changes to the
23 study. Like the Company, RUCO noted that the COSS should not be the sole factor considered when
24 developing a rate design. RUCO explained that in addition to the results of the Company's COSS.
25 "RUCO considered other factors such as sending appropriate price signals to reflect incremental cost.
26 the promotion of cost-effective conservation and making conservation efforts effective for residential
27
so Ex. A-I 1. P. 22.
28 151 Ex. S-8. pp. 2 - 3.
55 DECISION no. 82134

DOCKET NO. W-0 1427A-25-0126. ET AL.
I customers, the degree of subsidization of one group of customers at the expense ofothers. and revenue
2 stability.~~1s2 RUCO noted that it used the COSS as a tool in its recommendations to the Commission.
3 V. Rate Designs Proposed in the Rate Applications and Direct Testimonv
4 A. Water
5 The table below reflects the Water Division's present rates. its proposed rates in the Water Rate
6 Application, RUCOs Direct Testimony proposed rates without an FRP. RUC()'s Direct Testimony
7 proposed rates Vi / ith an FRP. and Stafils Direct Testimony recommended rates.
Ratesfor a 3/4" Meter - (ompany Rl (() (With Staff
8 Present Rates Rl I (O (No FRP)
Residential l'ro used FRI') Recommended
Monthly \linimum
9 Cha ve s 12.54 $l6.52 $15.59 sl2.s4 $l().29
No Gallons in Minimum
10
Commoditv (ha es _ _ _ _ _
I I 5/8 x3/4" and 3/4" Mcler _ _ _ _ _
0Gallons to 3.000
12 $0.7091 $0.8864 $0.8864 $0.8155 $0.89
Gallons
13 3.001 Gallons to 10.000
$1.8437 $2.9937 $29937 $2.8320 $2.73
Gallons
14 10.001 Gallons to 20.000 s2.843v $3.9937 53.9937 $3.9138 $3.7I
Gallons
15 Over 20.000Gallons 53,2676 $4.3937 $4.3937 54.4838 $4.07
Liberty Litchlields current rate design for the Water Division consists of an inclining four-tier
16
17 rate structure for 5/8 x 3/4-inch, 3/4-inch, and I-inch metered residential and multi-family customers.
18 and an inclining two-tier rate structure for all other meter sizes and customer classes. except for the
19 bulk and hydrant classes. which are billed a single commodity rate for all gallons consumed. Liberty
20 Litchfield did not propose any changes to this basic rate design or to the existing break-over points,
21 which the Company proposed to continue from the last rate case. Under the Company's proposed rates,
22 the monthly bill for a 3l4-inch metered residential customer using an average of 8.150 gallons would
23 increase from $24.l6 to $34.60. an increase of$l0.43. or approximately 43 percent.
Staff recommended retaining Liberty Litchfield's existing rate design for the Water Division.
24
25 including its four-tier and two-tier rate structures and existing break-over points, which Staff
26 incorporated into Staflls recommended rate design. Statfls recommended rates employ an inverted
27 block structure. in vt r hich the price per unit of the commodity charge increases as usage increases. which
28 152 Ex. RUCO-4. P. 5.
56 DECISIONNO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
I is intended to send a pricing signal that encourages the efficient use of water resources. Under Staffs
2 recommended rates. the monthly bill for a 3/4-inch metered residential customer using an average of
3 8. I 50 gallons would increase from $24. l6 to $32.98. an increase of$8.82. or approximately 37 percent.
4 RUCO's recommended rate structure follows Liberty Litchfield's proposed rate design for the
5 Water Division. with rates scaled to conform to RUCOs recommended Revenue Requirement. RUCO
6 stated that this rate structure is reasonably cost-based. offers a fair opportunity for the Company to
7 recover its revenue requirement. and. through its inclining tiered design, encourages water
8 conservation.
9 Without the adoption of an FRP. RUCOls recommended rates would increase the monthly bill
10 for a 3/4-inch metered residential customer using an average of 8,150 gallons from $24.16 to $31.97,
l l an increase of$7.8l. or approximately 32 percent.
12 If an FRP is adopted. RUCO's recommended rates based on its lower recommended Revenue
13 Requirement would instead increase the bill from $24.16 to $29.57. an increase of $5.4l. or
14 approximately 22 percent.
15 If the Commission approves the ARAM. RUCO is opposed to the (.ompany's proposal to take
16 the revenue increase or decrease that would result from application of a return that falls outside of the
17 dead band and apply it equally to Minimum Monthly Charges and volumetric charges. RUCO proposed
18 that the approved Monthly Minimum Charge remain the same and the revenues should be allocated to
19 the volumetric charges. RUCO reasoned that the Monthly Minimum Charge "does not change with
20 usage. while the commodity charge is based on usage. Thus. the higher the monthly minimum charge,
21 the less opportunity customers have if they choose to conserve or reduce their usage. which translates
22 into a higher bill and goes to the customer affordability issue."!53
23 B. Wastewater Division
24 Residential Present Rates Company RUCO (Without RUCO (With Staff
Pro I used Formula Rates Formula Rates Recommended
25 Monthly Usage $45.23 $69.72 $64.89 $64.34 $65.00
Char Fe
26
Liberty Litchfield does not propose any changes to the basic rate design for the Wastewater
27
28 153 Ex. RUCO-4.
57 DECISION NO. _82]34

i
l DOCKET NO. W-0I 427A-25-0I26, ET AL.
I
l
l i
l l l Division. which employs a Hat monthly customer charge by class. Under the Company's proposed
2 rates. the monthly bill for a residential wastewater customer would increase from $45.23 to $69.72. an
3 increase o1$24.49. or approximately 54 percent.
4 Staff recommends retaining Liberty Litchfieldls existing rate design for the Wastewater
5 Division. a flat-rate structure by customer class, with a commodity charge retained for certain
6 commercial customers. Undcr Staff's recommended rates. the monthly bill for a residential wastewater
7 customer would increase from $45.23 to $65.00. an increase of$l9.77. or approximately 44 percent.
8 RUCOs recommended rate structure for the Wastewater Division also follows Liberty
9 L itch fields proposed flat-rate design. Without the adoption of an FRP. RU(()s recommended rates
10 would increase the monthly bill for a residential wastewater customer from $45.23 to $64.89. an
l l increase of$l9.66. or approximately 43 percent.
12 llan FRP is adopted. RUC()s recommended rates would instead increase the bill from $45.23
13 to $64.34. an increase ol$I9. l 0. or approximately 42 percent.
14 c. Bill Impacts
15 I. Water Division
16 The table below compares the monthly bill impact on a 3/4-inch metered residential customer
17 using an average ofl8.l 50 gallons under the rates proposed or recommended by each party for the Water
18 I)ivision prior to the Settlement.
19 Present Bill Bill Under s Increase % Increase
_ Proposed /
20 Recommended
Rates
21 ll..llll..l $24. 16 $34.60 $10.43 43. I 8%
..........| $24.I6 $32.98 $8.82 36.5 I %
22 llln..ll.ll $24. I6 $3 I .97 $7.8 I 32.34%
.lln..lll.. $24. I6 $29.57 $5.4 I 22.39%
23
*Liberty Litchfield calculated a Rate Case Expense Surcharge for all water customers of $0.44.
24 ** Staff calculated a Rate Case Ex erse Surchar e for all water customers of $0.25.
25
26 l
27 l
28
58 DE(ISl()N NO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
I 2. Wastewater Division
2 The table below compares the monthly bill impact on a residential wastewater customer under
3 the rates proposed or recommended by each party for the Wastewater Division prior to the Settlement.
Present Bill Bill Under S Increase % Increase
4 _ Proposed /
Recommended
5 Rates
..Ulllllll $45.23 $69.72 $24.49 54. l4%
6 lllllllllll $45.23 $65.00 $ l 9.77 43.70%
l11n1111n1 $45.23 $64.89 $19.66 43.46%
7 11111111111 $45.23 $64.34 $19.10 42.23%
*Liberty Litchfield calculated a Rate Case Expense Surcharge for all wastewater customers of $0.53
8
**Staff calculated a Rate Case Ex I erse Surchar Fe for all wastewater customers of $0.23.
9 I). Service Charges
10 S ervice Char es - Water Division
I I
Service Charges Charges Present Company RUCO Staff
12 Proposed Proposed Recommended
Char es Char es Char es
13 lllllllllllllll $20.00 $30.00 $30.00 $30.00
14
llllllllnlmllll $50.00 $50.00 $50.00 $35.00
15 llllllllllllllI $25.00 $30.00 $30.00 $30.00
llllllllllllllI $5.00 $20.00 $20.00 $20.00
16 111111111111111 $50.00 $50.00 $50.00 $50.00
.
/ At Cost At Cost At Cost At Cost
17
lllllllllllllll $25.00 b $25.00 b $25.00 b $25.00 b
18 lllllII.lllllll l.50% I .50% l.50% 1.50%
lllllllllllllll c c c c
19 After Hours Service Charge (At $40.00(d) $125 .00(d) $l25.00(d) $75.00(d)
.
Customerls Re rest
20
2] lEllllllllllll. 6% 6% 6% 6%
Q _ M I I B ] _ l 5 l _ b l
22 11111111111111 No Tariff $75.00 $75.00 $75.00
23
»
24 (b) Liberty Litchfield may charge only on NSF Fee when customers are billed for water and sewer
services in one bill.
25
l
(d) Customer shall be charged for alter-hours service calls outside of normal working hours for work
26 » erlbrmed at the customer's re rest or convenience I er A.A.C. RI 4-2-403.D2. \
I I
(e) Per A.A.C. RI 4-2-403.B.7. residential - two times the bill by class. Non-residential - two and
27
one-half times the customers estimated monthl bill.
28
l
\
59 DECISION NO. -42434

DOCKET NO. W-01427A-25-0126, ET AL.
1 Customers shall a the a licable water hook-u 1 fees o or tariff.
I
In addition to the collection of regular rates. the utility will collect from its customers a proportionate
2 share of an riv ile 'e. sales, or use tax. Per commission rule A.A.C. RI4-2-409.D.5.
3 Service Char cs - Wastewater Division
4 Charge Present Company RUC() Staff
Charges Proposed Proposed Recommended
5 Char I es Char I es Char 1 es
Establishment Re \ ulan Hours $20.00 $30.00 $30.00 $30.00
6
Re-establishment (Within 12 ca) ca) ca) (a)
7 Months
Reconnection Delin rent At Cost b At Cost b At Cost b At Cost b
8 Disconnection At Cost b At Cost b At Cost b At Cost b
NSF Check $25.00 c $25.00 c $25.00 c $25.00 c
9
Deferred Pa rent (Per Month I.50% 1.50% 1.50% 1.50%
10 Late Char - e Per Month cal al al ml
After Hours Service Charge (at $40.00 (e) $40.00 ce) $40.00 (e) $40.00 (e)
I I Customer's Re e rest
De O osit Re 0 uirement m o rn
12
Deposit Interest per A.A.C. R14- 6.0% 6.0% 6.0% 6.0%
I 3 2-603.B
Service Lateral Connection At Cost (g) At Cost (g) At Cost (g) At Cost (g)
14 Char >e - All Sizes
Main Extension, Tariff At Cost At Cost I At Cost l At Cost h
15 influent Meter Installation Char e At Cost At Cost I At Cost _ At Cost i
16 Wastewater Hook-U Fees Al Cost • At Cost - I At Cost Y At Cost
Failed Final Ins ection Fee No Tariff $75.00 $75.00 $75.00
17
a Minimum char e times number of full months off the s stem or A.A.C. R-I 4-603.D.l.
18 b Per A.A.C. Rl4-2-603.D.l.
19 (c) Liberty Litchfield charge only one NSF when customers are billed for both water and wastewater
on one bill.
20 d Greater of $5.00 or l.50% of un aid balance.
(e) Customer shall be charged for after-hours service calls outside of normal working hours for work
21 I erformed at customers re I rest or convenience.
(f) Per A.A.C. R-I4-2-603.B residential - two times the bill by class. Non-residential - two and one-
22
half times the customer's estimated monthl bill.
23 (g) At Cost. Customer/developer shall install or cause to be installed all service laterals as refundable
advances-in-aid of construction. l
24 (h) Per A.A.C. RI4-2-603.B. All main extensions shall be completed at cost and shall be treated as l l
refundable advances-in-aid of construction.
25
(i) The cost of the influent meter and metering system installation shall be at the sole expense of the
26 commercial and industrial user and not subect to refund.
(j) Residential and non-residential customer/developers shall pay the applicable wastewater hook-up ll
27 fees or tariff.
28
60 DECISIONNO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
In addition to the collection of regular rates, the utility will collect from its customers a proportionate
I
share of an I riv ile >e. sales, or use tax. Per commission rule A.A.C. R l4-2-608.D.5.
2
E. Meter and Service Line Charges
3 Liberty Litchfield does not propose any changes to its existing Service Line and Meter
4 Installation charges. Neither Staff nor RUCO objected to the charges.
5
SERVICE LINE ANI) METER INSTALLATION CHARGES
6 *Refundable Pursuant to A.A.C. RI 4-2-403.
Illllllllll Service Line Meter Char ¢ e Total Char Q e
7 5/8" x 3/4" Meter $565 $158 $723
3/4" Meter 565 260 825
8
l" Meter 629 32 I 950
9 I I/2" Meter 536 1,235
2" Turbine Meter At Cost At Cost At Cost
10 2" Com ound Meter At Cost At Cost At Cost
3" Turbine Meter At Cost At Cost At Cost
I I
3" Com I ound Meter Al Cost At Cost At Cost
12 4" Turbine Meter At Cost AI Cost At Cost
4" Com ound Meter At Cost At Cost At Cost
13 6" Turbine Meter At Cost At Cost At Cost
6" Com I ound Meter At Cost At Cost At Cost
14
Note: A $75 fee a I I lies for an service line or meter line installation that fails ins ection.
15 . . . .
VI. Pre-Settlement Proposed Revised Tariffs and New Tarlffs
16
A. Summary
17
At present. Liberty Litchfield has a Purchased Power Adjustment Mechanism ("PPAM"). 154 a
18 Water SIB Surcharge Mechanism,l55 a Wastewater SIB Surcharge Mechanism.l56 and a Property Tax
19 Adjustment Mechanism ("PlAM").157
20
In addition to the Curtailment Tariff and the Cross Connection/Backflow Prevention Tariff
21 adopted in Section II of this Decision, above. Liberty Litchfield also proposed in its Rate Applications
22 a Federal Compliance Cost Recovery Mechanism (FCCRM"), an Emergency Water Augmentation
23 Tariff ("EWAT") and an accompanying Plan of Administration ("POA"). Customer Assistance Tariff
24 ("CAT"), an Industrial Fire Service Tariff("lFST"), and revisions to the Off-Site Hookup Fee Tariffs
25
26
154 The Commission authorized the PPAM in Decision No. 74437 (April 18. 2014), which was reauthorized by the
Commission in Decision No. 76779 (August IS, 2018).
27
155 Staff noted that the Company has not sought to implement an SIB Surcharge for Liberty Litchfield. Ex S-9. p. 14.
156 The Commission authorized the SIB Surcharge Mechanisms in Decision No. 74437.
28 157 The Commission authorized the PTAM in Decision No. 76799.
61 DECISION NO. 82134

DOCKET NO. W-01427A-25-0I 26, ET AL.
I ("l IUF").
2 B. Federal Compliance Cost Recovery Mechanism ("FCCRM")
3 I. Liberty Litchfield
4 Liberty Litchfield explained that if its proposed ARAM is not adopted by the Commission. the
5 Company requests approval of an FCCRM. The Company noted that its proposed FCCRM bears the
6 same terns the Commission approved for a Liberty Litchfield affiliate in Decision No. 81361 (June
7 I 8. 2025).158 Through the FCCRM. the Company may recover the costs incurred to remediate federally
8 regulated Per- and polyfluoroalkyl substances. known as PFAS. through this rate adjustment
9 mechanism. Liberty Litchfield stated that the FCCRM will allow the Company to recover expenses
10 funding plant additions and operating and maintenance expenses necessary to remain in compliance
I l with all federally mandated Maximum Contaminant Levels ("MCLs") for PFAS and similar
12 substances. Liberty Litchfield maintained that the FCCRM is necessary to reduce the impact of
13 regulatory lag in the recovery of the disproportionate expenditures needed to fund anticipated United
14 States Environment Protection Agency ("EPA") regulations related to PFAS. The Company noted that
15 at least ten wells in the water system will require treatment at an estimated cost of $40 million.
16 excluding operating and maintenance costs. Liberty Litchfield asserted that approval of the FCCRM is
17 in the public interest as it is a valuable tool in the mitigation of health risks associated with PFAS and
18 aid in avoiding rate volatility.
19 2. Staff and RUC()
20 Staff and RUCO noted that the FCCRM proposed by the Company is similar to the one for an
21 affiliate of Liberty Litchfields in Decision No. 81361.159 Both Staff and RUCO noted that if the
22 Commission does not adopt the ARAM. then no modifications to the FCCRM as proposed are
23 necessary and recommended approval of the FCCRM. llowever, should the Commission approve the
24 ARAM. then the FCCRM is not needed.!60
25 158 In the Muller of the Application of Liberty Utilities J tlieardsley Hate/7 Corp.. un .4ri:ona Cotporation, for a
Determination of the Fair Value of its Utility Plants and Property and for Increases in its Rates and Fhargesfor Utility
26
Service Based Thereon,Docket No. W02074A-23-0337,et al.
l5° In the .Hatter of the Application of Liberty Utilities (8eards/ey Water) Corp., an Arizona Corporation, /or a
27 Determination o/the Fair V glue q/its Utility Plants and Property and for Increases in its Rates andChargesfor Utility
Service Based 7nereon, Docket No. W-02074A230337, et al.
28 160Ex. s-9, PP 14 - I5: Ex. s-5, p. 10 ... 12. Ex. RUCO2. P. 9.
62 DECISION NO. 82134

DOCKET N(). W-01427A-25-0126. ET Al..
l c. Emergency Water Augmentation Tariff ("EWAT")
2 I. Liberty Litchfield
3 Liberty Litchfield stated that it proposed an EWAT to cover costs incurred in the event of a
4 serious water shortage. The Company noted that in such a situation. it is possible that Liberty Litchfield
5 will need to purchase water and water hauling services. Under the proposed EWAT. the Company
6 defines an "emergency water shortage" as one that is serious: develops suddenly or unexpectedly, is
7 out of the Companys control: demands immediate attention, and triggers at least a Stage 3 water use
8 curtailment. Liberty Litchfield explained that if it is necessary to implement the tariff. the Company
9 must provide notice to Commission Staff. With approval from Staff. the Company may include the
10 EWAT surcharge as a separate line item on customers' monthly bills. The EWAT contains a provision
I I that states. "the Company shall notify its customers of this new tariff as part of its next regularly
12 scheduled billing after the effective date of the tariff but no later than sixty (60) days after the effective
13 date of the tariff in a form acceptable to Staff."
14 2. Staff
15 Staff stated that it believes the proposed EWAT is an appropriate proposal. Thus. Staff
16 recommended that the Commission approve the Company's proposed EWAT and related P0A.161
17 3. RUC()
18 RUC() stated that the EWAT is needed to address potential shortage and safety issues. Thus.
19 RUCO recommended that the Commission approve the EwAT.I62
20 D. Industrial Fire Service Tariff("lFST")
21 l. Liberty Litchfield
22 Liberty Litchfields proposed IFST is a new tariff that includes a charge equal to 20 percent of
23 the Monthly Minimum Charge for the applicable meter size and the applicable commodity charges.
24 The Company noted that it has several industrial customers that utilize private industrial fire services.
25 Liberty Litchfield observed that there has been significant industrial development in the Companys
26 service area. The Company asserted that this new tariff addresses the costs for such service and. under
27
161 Ex. S-7. p. 24.
28 162 Ex. RUCO-2, p. 50.
63 Di;clslon NO. 82134

DOCKET NO. W-0I427A-25-0I 26, ET AL.
l the proposed tariff. industrial customers subject to the tariff are responsible for the entire cost of the
2 private fire service. The IFST requires that private fire services obtain a How meter and a backflow
3 prevention device. Further. the Company noted that the fire service is completely separate from the
4 domestic water service and explains that unauthorized use or cross-connections are prohibited and may
5 result in termination of service. Liberty Litchfield notes that a similar tariff was approved for Arizona
6 Water Company.163
7 2. Staff
8 Staff noted that because this is a new tariff. and the Company has not provided a cost of service
9 study demonstrating that its proposed charges reflect the actual cost of providing this service, Staff is
10 not able to verify the reasonableness of the rates proposed in the IFST. However. Staff noted that based
I I on the information provided by the Company. Staff did not object to the implementation of the proposed
12 tariff and recommends that the Commission approve the proposed IFST on an interim basis. Staff
13 further recommended that Liberty Litchfield be directed to submit a Cost-of Service Study related to
14 the IFST in its next rate case if the Company wishes to continue with the use of this tariff. Staff stated
15 that based on the COSS. Staff will reassess the cost components underlying the tariff to determine
16 whether they are cost-justified.
17 3. RUCO
18 RUCO stated that it believes that the IFST is necessary to address potential safety issues.
19 Further. RUCO asserted that this tariff places the costs on the potential cost causers and not on
20 residential customers. Thus, RUCO recommended that the Commission approve the IFsT.""'
21 E. Customer AssistanceTariff ("CAT")
22 I. Liberty Litchfield
23 Liberty Litchfield proposed the new CAT. which will replace the Companys existing Alternate
24 Rates for Water and Wastewater ("ARWW") tariff. The Company explained that the CAT includes
25 Low-Income. Deployed Service Members. and Disabled Veteran programs that are designed to
26 alleviate financial hardship that these customers might be facing. The Company noted that the CAT is
27
163 Decision No. 77956 (April 15. 2021).
28 "" Ex. RUCO-2. p. 51.
64 DECISION NO. 82134

DOCKET N(). W-01427A-25-0126. ET AL.
I consistent with what the Commission approved for other Liberty Litchlield affiliates in Decision No.
2 8 I 36 l. Liberty Litchfield explained that under the ARWW. only customers that have qualifying annual
3 incomes at or below 150 percent of the Federal Poverty Level ("FPL") qualify for the tariff. Incontrast.
4 the CAT expands the applicability of the tariff to additional groups of customers. including deployed
5 service members and disabled veterans. The CAT also increases the qualifying annual income to up to
6 200 percent of the FPL. According to the Company. costs associated with the CAT are recovered
7 through a surchargeapplied to all non-participating customers. Company witness Regina Wise testified
8 that at present. there are 103 customers. combined. for both Divisions under the ARWW. The cap for
9 each Division under the CAT is set at 5.000 customers.16'5
10 2. Staff and RUC()
l l Both Staff and RUCO recommended that the Commission approve Liberty Litchlields
12 proposed cAT.166
13 F. Off-Site Hook-Up Fee Tariff("Off-Site HUF")
14 I. Liberty Litchfield
15 Liberty Litchfield related that the Company is attempting to address the challenges posed by
16 large industrial plants. The Company explained that the current Off-Site IIUF fees include meter
17 multipliers that increase the fee as the meter sizes increase. Liberty Litchfield noted that this generally
l 8 works well but in the case ollarge industrial customers. the resulting Off-Site HUF does not adequately
19 contribute towards the cost of the facilities necessary to serve the industrial customer.
20 a. Water
21 Liberty Litchfield noted that its current Off-Site HUF-Water was approved in Decision No.
22 76799 (August 15, 20I 8). The Company observed that its existing fees have not been updated since
23 2018. The Company proposed updated Off-Site llUF water tariffs for all customer classes and meter
24 sizes to more accurately reflect Liberty Litchfields current costs. Liberty Litchfield proposed a revised
25 water Off-Site Hookup Fee Tariff that increases the current fee of$l,800 per Equivalent Residential
26 Unit ("ERU") with an ERU Flow Allotment of 320 gallons per day ("GPD"). Under the Companys
27
is Hearing Transcript at 325 (Tr. at _.")
28 166 Ex. S5. p. IO: Ex. RUCO-2. p.50.
65 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126, ET AL.
I proposal. the Off-Site HUF would increase to $2,584 per ERU, which would be an ERU Flow
2 Allotment 0f405 GPD.167
3 b. Wastewater
4 The Company presently has an Off-Site HUF Tariff-Wastewater approved by the Commission
5 in Decision No. 78485 (March 2, 2022). Liberty Litchfield observed that:
6 A new large industrial customer can require wastewater treatment capacity that requires
millions of dollars worth of capital investment to meet these capacity needs and support
7 growth. The current hook-up fees fall far short of addressing this. If the Company invests
to make up the difference. the resulting increase in rate base creates rate increases that will
8 be passed on to all of the capacity costs that they impose on the wastewater systems.
Accordingly. we are proposing that individual contribution contracts be required for each
9 large industrial customer."'8
10 2. Staff
l l a. Water
12 Staff reviewed the Company's proposed water Off-Site HUF and explained:
l3 A review of the updated hook-up fee calculation indicates that the Company anticipates
capital improvement projects to upgrade the existing water systems and to construct new
14 water facilities to meet projected service needs by 2030. with a total estimated cost of
approximately $146 million. Upon completion of these projects, the Company will have
15 the capacity to serve 56.667 customers. Based on the net book value including the planned
projects and the total number of service units. the cost per unit is calculated to be $4,698.
16 The Company has proposed a cost-sharing structure in which 55 percent of the cost per
unit is allocated to developers and 45 percent to the Company. which is consistent with the
17 structure used in the current Off-Site Hookup Fee Tariflf for wastewater. This results in a
hook-up fee of $2,584.'°"
18
Staffstated that it did not oppose this proposal and recommended that the Commission approve
19 the Company's proposed water Off-Site HUF.
20 b. Wastewater
21
Staff reviewed Liberty Litchfields proposal and recommended that the Commission approve
22 the proposed wastewater Off-Site HUF.I70 Staff noted that the Company proposed updated tariff
23 language regarding customers that need a wastewater treatment capacity greater than 25.000 GPD.
24 These customers would be classified as Large Users and would enter into individual agreements with
22 the Company. Staff asserted that this approach allows the terms of service, including hook-up fees and
167 Ex. S-7. p. 25.
27
168 Ex. A-8, pp. 14 .- is.
169 Ex. S-7, p. 25.
28 170 Ex. s-7, p. 26.
66 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126, ET AL.
I other conditions, to be customized to unique needs of high-volume users but maintains clarity by
2 defaulting to the terms of the tariff when the agreements do not specify otherwise.
3 Staff recommends that the Commission approve the Companys proposed wastewater Off-Site
4 Hookup Fee Tariff.!7!
5 3. RUCO
6 RUCO stated that it believed that the changes to the Off-Site l{UFs are necessary to ensure that
7 the customer costs are put on the cost causers, rather than being shifted to the residential customers.
8 Thus. RUCO recommended that the Commission approve the updated water wastewater Off-Site
9 HUF$.l72
10 G. Pretreatment Tariff
I I I. Liberty Litchfield
12 The Company noted that a pretreatment tariff requires "certain wastewater customers to pretrcat
I 3 their wastewater and design their facilities so that their wastewater Hows meet certain standards and do
14 not interfere with the operations of the WRFs or threaten workers health and safety."!73 The Company
15 has a Commission-approved Pretreatment Tariff for the Wastewater Division that was most recently
16 modified in Decision No. 76799. Liberty Litchfield stated that its proposed updated Pretreatment Tariff
17 allows the Company to maintain compliance with AZDPES and APP permits and protect the integrity
18 of wastewater conveyance. treatment. reuse. and disposal infrastructure. and reduce the level of
19 pollutants discharged by industry and non-domestic wastewater resources. The Company explained
20 that it has recently seen significant industrial development in its service area since its last rate case.
21 Liberty Litchfield observed that "[s]erving large industrial clients can be challenging, especially
22 depending on the constituents of their waste stream. We are updating the tariff to further protect our
23 WRFs, and thus. to ensure that our other customers do not suffer either unwarranted expense or service
24 disruption caused by these industrial customers.I7"
25 The Company noted that the proposed pretreatment program and tariff includes: l) updates to
26
171 Ex. S-7. p. 26.
27
172 Ex. RUCO-2. PP 53 - 54.
173 Ex. A-8. p. 8.
28 114 Ex. A8. pp. 8 - 9.
67 [)EClSI()Nno. 82134

DOCKET NO. W-01427A-25-0126, ET AL.
I both WRFs, 2) provides more general and specific prohibitions of waste, 3) enhances the restricted
2 types of waste and updated limits, 4) provides general updates to ensure stringent compliance with
3 current standards,and 5) allows the Company to terminate service to industrial customers that endanger
4 the WRFs through improper discharges.175
5 2. Staff
6 Staff reviewed the Company's proposed Pretreatment Tariff and stated that Staff supports the
7 intent of the proposedTariff, with the exception of the proposed PFAS pretreatment local limit. Staff
8 acknowledged the Conlpanyls proactive approach to managing PFAS at the point source, given that
9 the Liberty Litchfield sewer system recharges Class A+ effluent to a shallow aquifer. The Company
10 proposed a 4 parts per trillion ("ppt") PFAS limit as a pretreatment standard but did not specify the
l l individual PFAS compounds to which this limit would apply. Staff noted that the 4 ppt standard
12 currently applies only to PFOA and PFOS in drinking water under federal regulations, and that PFAS
13 compounds are not currently regulated for sewer discharges or reuse, Staff stated its concern that
14 applying the drinking-water standard to industrial wastewater pretreatment may not be appropriate at
15 this time. Staff recommended that the Company resubmit the updated Pretreatment Tariff with a
16 reasonable interim PFAS limit. such as the 2016 EPA Health Advisory level of 70 ppt. and that the
17 Tariff specify individual PFAS compounds with an established limit for each. Staffdid not support the
18 Companys proposed Pretreatment Tariff as filed and recommended that it be revised and resubmitted
19 for re-evaluation.!76
20 3. RUCO
21 RUCO observed that even though the Pretreatment Tariff relates to industrial customers, it
22 believed that the proposed changes are necessary because the Pretreatment Tariff places the costs on
23 the industrial cost causers, which otherwise might be shifted to residential ratepayers. Thus, RUCO
24 recommended that the Commission approve the proposed updates to the Pretreatment Tariff.177
25
26
27
175 Ex. A-8. p. 9.
176 Ex. S-7. P. 27.
28 177 Ex. RUCO-2. p. 53.
68 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126, ET AL.
I Vll. ARAM
2 A. Original Proposal
3 Liberty Litchfield noted that at the time that the Company filed its Rate Applications on June
4 25. 2026. the Commission had not yet had the opportunity to consider an FRP for any utility. although
5 a number of companies had already proposed FRPs. Ms. Rao stated that the Company already had a
6 Commission-approved SIB but the ARAM is more comprehensive. 178
7 The Company asserted that the ARAM benefits customers and the Company alike by
8 implementing smaller incremental changes to rates. timely cost savings. enhanced transparency,
9 reduced regulatory lag. and investment in infrastructure. in addition. if the ARAM is approved. a
l() number of the Company's adjustors and would be eliminated. Finally. the Company stated that without
I l the ARAM. it expects there will need to be full rate case filings.I7° Liberty Litchfield attached its
12 proposed CSRM POA. now referred to as its ARAM POA. as Appendix I to the Direct Testimony of
13 Manasa Rao. The ARAM POA outlined the Protocols to be followed in the Annual Update process.
14 Key elements of the originally proposed ARAM POA were as follow:
15 . The Company will follow the methodology specified in the ARAM Template
16 ("Template") to determine each year its revenue requirement. revenue deficiency or
17 excess. rate base. and rates and applicable to service on and after September lslof each
18 calendar year.
19 . The first Annual Update will be filed by May l. 2027. using a I2-month test year ending
20 December 3 I . 2026. with future filings using a December 3 I sl test year.
21 • By May lsl of each year. the Company will file the Annual Update calculations
22 reflecting the ARAM surcharge or sur-credit in the Rate Application Dockets. Liberty
23 Litchfield will also provide its workpapers electronically to the parties in the Dockets.
ll
24 . In compliance with the Policy, the Annual Update will include a true-up, and earnings
li
i
25 test. and dead band of+/- 20 basis points.
26 . For transparency and ease of review. the Template inputs shall reflect the values
27
178 Ex. A-I6, p, ii.
28 179 Ex. A-16, p. 6.
69 DECISION NO..82134

DOCKET NO. W-0I427A-25-0126. ET AL.
I authorized by the Commission in the Company's last general rate case. including: I)
2 capital structure. 2) ROE. 3) COD. 4) Depreciation and CIAC Amortization rates, 4)
3 GRCF. and 5) Income Taxes.
4 . The Template will reflect data accurately recorded and maintained consistent with
5 NARUC USoA.
6 . The Annual Update will not include depreciation studies. COSS. COE statements,
7 certain contractual services fees. INDOH. lead/lag studies, new tariffs or language
8 changes to existing tariffs. rules. and regulations.
9 . Twice yearly, the Company will email the Utilities Division Co-Directors and
10 Engineering Manager, among other things, a list, description. location. NARUC
I I account and total cost of all capital projects greater than $5()().000.
12 . The surcharge/sur-credit will be a fixed monthly amount based on the active meters and
I 3 hill counts and vs / ill increase based on meter capacity multipliers.
14 . Within 30 days of the Annual Update filing, the Company will provide Staff with a
15 proposed form of customer notice that includes a summary of the Annual Update,
16 relating the individual surcharge/sur-credit by meter size and a summary of all capital
17 projects included in the surcharge/sur-credit. Once approved the Company V\ f ill provide
18 the notice to customers via newsletter or bill insert and post the notice on it website.
19 . The ARAM POA sets out a timeline for the Annual Update review process, which
20 begins on May l with the filing of the Annual Update and ends with I the issuance of a
21 Commission decision authorizing a surcharge/sur-credit by August 31. The Company
22 will implement the surcharge/sur-credit by October l.
23 • The Company may file up to five Annual Updates before it must file a general rate
24 application. but it may voluntarily file a full rate case at any time.
25 Ms. Rao noted that the proposed ARAM adopts a shorter timeline than noted in the Policy, but
26 stated that the Company believes that the proposed changes are reasonable "when applying the Policy
27
28
70 DECISION no. 82135

DOCKET no. W-01427A-25-0126. ET AL.
I Statement to water and wastewater utilities and the Companys size.,,180
2 B. Staff Direct Testimony
3 In Staffwitncss Teresa Hunsakerls Direct Testimony, she stated that in addition to the ARAM
4 POA included in the Rate Applications. Liberty Litchfield provided the Template schedules to Sta ff on
5 November 7. 2025, and an Excel workbook with a fixed framework for updating rates on December
6 23, 2025.'"'
7 Staff agreed Vi / ith the Company's assessment of the benefits of the ARAM for Liberty Litchfield
8 and its customers. However, Staff did not agree with Liberty Litchtieldls proposal to shorten the
9 Annual Update timeline. Ms. llunsaker explained that Staff will process the Annual Update in a timely
10 manner. Staff stated that it did not believe that the language in the POA setting strict deadlines was
I I appropriate as the dates bind the Commission in terms of the issuance of a final order. Additionally,
12 Staff explained that its "preferred language would allow Staff the flexibility to manage its workload in
13 conjunction with other items that will be required to be taken to the Commission around [the same time
14 as other utilities Annual Update orders]."l82 Further. Staff disagreed with I the proposed dead band of
15 +/-20 basis points. Ms. Hunsaker testified: "While Staff agrees that there are benefits to such a
16 mechanism for all involved. this type of mechanism is close to a guaranteed return and addresses
17 regulatory lag. but Staff believes it is important to ensure that the rate payers are protected and. one
18 way to do so is to have a broader deadband until it can be quantified exactly how much the risk to the
19 Company is reduced with this type of mechanism.9183
20 Staff recommended that Contractual Services - Management Fees. INDOH. and AFUDC
21 should not be included in the Annual Updates because these are typically contested issues that should
22 not be included in the Company's Annual Updates due to their complexity and historical
23 contentiousness. As such, Staff recommended modifications to Section ll.g of the ARAM POA to state
24 that Contractual Services - Management Fees typically found on Schedule C-I shall be those
25 authorized by the Commission in the underlying decision. In addition. Staff asserted that the Company
26
1R()EX A-I6. p. 13.
27
"*' Ex. s9. p. 3.
is Ex. s9. p. 13.
28 183 Ex. S9, p. 8.
71 DECISION NO. 82134

DOCKET NO. W-0I427A-25-0126. ET AL.
I should not include any INDOH or AFUDC in its Plant in Service and CWIP as typically found on
2 Schedule B-l - again. due to their complexity and prior contentiousness. Staff also recommended
3 modifications to Section.ll.h.i of the ARAM POA for cost disallowances: after "by the parties" the
4 term "or changed by the Commission.~I8"
5 Staff commented that it and the Company should continue to work together on issues regarding
6 the timeline. provision of notice to interested parties, whether threshold amount for twice yearly capital
7 project updates should be reduced to $200.000. should be provided quarterly and whether they should
8 be provided to any stakeholder. and whether language be included stating that Staff and any stakeholder
9 may request the supporting documentation for the project updates.185
10 Staff objected to the Company's proposal to implement an ARAM surcharge/sur-credit if the
I I Company's revenues fall outside of the authorized deadband. Instead, Staff stated that it believed that
12 "it is proper and accurate to capture the revenue deficiency calculated from the [ARAM] Rate Template
13 and allocate it between a fixed monthly charge and volumetric rate proportional to what is approved
14 by the Commission in the underlying rate case."l86
15 c. RUCO Direct Testimony187
16 RUCO is opposed to the proposed ARAM because in Arizona a utility must be given an
17 opportunity to earn its authorized return. not a guarantee to earn a return. RUCO argued that FRPs
18 provide utilities with a guaranteed return on investment.
19 RUCO asserted that the proposed ARAM violates the Commissions Policy because. among
20 other things: the ARAM POA does not reflect the FERC MISO protocols, limits sharing of workpapers
21 and the semi-annual capital projects reports only with Staff, does not promote participation in the
22 process; and it appears that the Company only intends to provide a summary of capital projects
23 supporting the ARAM surcharge/sur-credit.
24 In addition. RUCO declared that the proposed timeline is inadequate and will not give parties
25 a sufficient opportunity to conduct discovery, analyze data, and make informed challenges to the
26
184 Ex. S-9. p. 9.
185 Ex. S-9, p. I I.
27
186 Ex. S9. P 12.
187 RUCO discusses the current status of the litigation in appellate courts of the Commission's Policy. We do not address
28 that here.
72 DECISION NO. 89134

DOCKET NO. W-()I427A-25-0126. ET AL.
I Annual Update. According to RUCO. the timeline does not provide a for an Information and Exchange
2 and Informal Challenge period as outlined in the Policy. Nor does itoutline sufficient Formal Challenge
3 information. Further. RUCO asserted that the 91 -day period between filing the Annual Update on May
4 I and issuance of a Staff-proposed order by July 31 does not provide adequate time to conduct
5 discovery to obtain any substantial evidence regarding prudency.188
6 RUCO also suggested that the rushed timeframe for the Annual Update will make the rate
7 process less transparent and accessible to individual ratepayers. There will be no pre-filed testimony,
8 which lessens the level of transparency. RUCO contended that this lack will increase the need for
9 expanded discovery iIstakeholders are expected to process a prudency review.189
10 RUC() also disputed that Liberty Litchfield has a need for an FRP. RUCO argued that, other
I l than reiterating the findings of the Policy. the Company offers no other evidence that it is incurring any
12 harm under the traditional ratemaking models. RUCO pointed out that Liberty Litchfield's parent,
13 APUC. is a publicly traded company and thus. the Company is well funded.I90
14 RUCO maintained that even though the Company claims that the ARAM will promote rate
15 gradualism. due to the cumulative effect of formula rates on ratepayers potentially being charged
16 higher--even if smaller-rates each year. the cumulative effect of these increases means customers
17 will pay more that they might under a general rate case every three to five years. In addition. RUCO
18 surmised that implementation of an FRP removes any incentive a company may have to control costs.
19 RUCO acknowledged that formula rates may reduce regulatory lag for utilities but it does so at
20 the expense of customers. RUCO argued that the Annual Update "filings shift the burden onto
21 interveners to challenge cost 'updates that are unsupported in the Companys application. The annual
22 rate filing is an abbreviated process which does not provide interveners the necessary process to do a
23 detailed examination."'°'
24 RIICO concluded that there is nothing in the ARAM that would cause the formula rate process
25 to be more favorable to ratepayers than traditional rate making. Accordingly. RUCO urged the
26
188 Ex. RUCO-4, PP l l 20.
27
189Ex. Ruco4. p. 25.
190Ex. RUCO4. p. 20.
28 191 Ex. RUCO4, p. 26.
73 DECISIONNO. 82134

DOCKET NO. W-01427A-25-0126, ET AL.
I Commission to deny approval of the ARAM."'2
2 However, should the Commission approve the ARAM. RUCO made the following
3 recommendations:
4 • An upper deadband of+50 basis points and a lower dead band of -80 basis points.
5 . No additional cap above the upper deadband of+50 basis points.
6 . A collar or floor mechanism set at -80 basis points.
7 . A global rate increase limit for the full five years of the formula-rate return.
8 . The equity ratio adopted by the Commission should be used for the ARAM.
9 • Ensure that all parties be allowed to issue discovery.
10 . Commission Staff should have 90 - 180 days to file its report or proposed order.
l I An overall process time of not less than nine months.
12 . If formula rates are approved. Rate Case Expense should not be included in the yearly
13 filings.
14 No pro forma adjustments for known and measurable changes, annualizations, and
15 PTYP.
16 . An increase in rates should only apply to the commodity rate.
17 I). Company Rebuttal Testimony
18 I. Response to Staff Direct Testimony
19 Other than making a few observations on points of agreement. the Company stated that it would
20 not be providing rebuttal testimony to Staff's Direct Testimony.
21 First. Liberty Litchfield stated that Staff agreed with the filing timelines proposed by the
22 Company generally but noted that Staff expressed concern about setting firm deadlines. The Company
23 disagreed with Staflfls assertions and claimed that firmly established timelines are an important feature
24 of formula rate mechanisms. Regarding Staffs recommendation to exclude management fees. INDOH.
25 and AFUDC from Annual Updates. the Company asserted that the proposed ARAM already includes
26 safeguards that prohibit Rate Base and Operating Expense adjustments from being "run back through
27
28 ""2 Ex. Ruco-4, p. 30.
74 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
l the mechanism. To the extent that Staff` believes it is appropriate to further exclude additional cost
2 elements from the [ARAM], we agree that these warrant continued discussion in Phase Two."l93 As
3 for Stallls other concerns and recommendations. Liberty I.itchflield commented that a Phase Two
4 proceeding would be the most appropriate setting.
5 2. Response to RUCO Direct Testimony
6 Liberty Litchfield contended that RUCO's proposed modifications would undermine the
7 purpose of the ARAM and potentially reduce the ratepayer benefit of gradualism. Liberty Litchlield
8 disagreed with RUCOs assertion that the Company's proposed dead band would disincentivize the
9 Company to control its capital and Operating Expenses. The Company pointed out that the ARAM
10 POA subjects all costs included in the Annual Update to a prudency determination. which would
I I exclude any imprudent or unreasonable costs. Further. Liberty Litchfield asserted that RUCO's
12 proposed collar would. "for years with particularly significant underearning, prevent annual
13 adjustments fully addressing that underearning and thus increase regulatory lag as compared to a
14 deadband without a collar. The Company claimed that RUCOs proposal also risks creating larger.
15 more abrupt rate increases in subsequent years undermining the principle ofgradualism."'°" In addition.
16 Liberty Litchfield argued that RUCO's proposed cap or collar on the cumulative rate increases impacts
17 on the Companys ability to provide rate gradualism.
18 3. RUCO Surrebuttal TestimonyI95
19 RIJC() reiterated its objections to the ARAM. However. if the Commission chooses to approve
20 an ARAM. RUCO stated that more terms that should be added for the protection of ratepayers.
21 Pilot Program - RUCO asserted that a Pilot Program should be put in place to ensure that the
22 ARAM functions as it is supposed to. RUCO asserted that a Pilot Program would achieve many of the
23 goals sought by the Commission. including accountability. transparency. and certainty.
24 Productivitv Credit - RUCO explained that a productivity credit works to normalize the
25 Revenue Requirement that Liberty Litchfield recovers from the ARAM to ensure that amounts
l
26 recovered from customers embed a proper amount of productivity gains that are expected to be
l 9
27 i
193 Ex. A-I7, p. 4.
194 Ex. AI7, p. 5. \
28 195 Ex. RUCO-3, p. 5. li
75 DECISION NO. _82134
l

DOCKET no. W-01427A-25-0126, ET AL.
I achieved each year. RUC() believed this is reasonable because this credit would reflect an expectation
2 of savings the Company should achieve by focusing its efforts on running the Company rather than
3 frequent rate cases. RUC() recommends a 10 percent productivity credit.
4 Vlll. Financier A lication
5 In its Financing Application. Liberty Litchfield seeks Commission approval to issue long-term
6 debt in the amount of $65 million from its parent Liberty Utilities. Liberty Litchfield states that
7 combined with its current debt of approximately $40 million approved in Decision No. 76799 (August
8 18. 2018). the request would bring the total long-term debt authorization to approximately $105
9 million.
10 Liberty Litchfield asserted that the key factors necessitating the finance authority are due to
I I significant capital investments and related expenses. the cost of capital projects, and increases in
12 interest rates. In addition, the Company stated that the loan will rebalance Liberty Litchfield's Capital
13 Structure in the coming years. which will require significant additional borrowing authority. Thus. the
14 Company requests authority to borrow an additional $65 million in debt to be authorized over 10 years.
15 In addition to the current request. Liberty Litchfield advised that the Company is in the process of
16 applying for a low-cost loan from the Water Infrastructure Finance Authority ("WIFA") for the design
17 and construction costs to comply with the EPAs current rules regarding PFAS. Liberty Litchfield
18 relates that it will submit a separate financing application for the WIFA financing at the appropriate
l
19 time if the WIFA financing proves beneficial.
l
20 Liberty Litchfield noted that based on its most recent annual financial statements attached to its l
21 Financing Application. and assuming the entirety of the authorized debt is drawn. pro forma
22 calculations indicate that Liberty Litchfield would have a Debt Service Coverage Ratio ("DSC") of
23 5.95 percent and Times Interest Earned Ratio ("TIER") of2.96. which demonstrate that the proposed
24 debt is within Liberty Litchfields ability to pay and is consistent with sound financial practices.
25 Under the provisions of the Term Sheet provided as an attachment to the Financing Application,
26 "Liberty Utilities will provide the subject financing at the I0-year U.S. Treasury rate plus a credit
27
28
76 DECISION NO. 82134

DOCKET NO. W-01427A-25-0l 26. ET AL.
I spread which reflects Liberty Utilities' most recent private placement financing."'% Interest Payments
2 are to be made monthly. The principal balance would be due and payable on or before the maturity
3 date. which is 10 years after the Closing Date.
4 In their respective Direct Testimonies, neither Ruco'°" nor Staff198 objected to Commission
5 approval of the Financing Application.
6 IX. Settlement A reement
7 Settlement discussions were held on February 17. 2026. Liberty Litchfield and Staff asserted
8 that the settlement discussions were open. transparent. and inclusive of all the parties to the
9 proceedings. The Company. RUCO. and Staff were present. On March 3, 2026. Liberty Litchfield and
10 Staff submitted a Settlement Agreement signed by Moses Thompson. President on behalf of Liberty
l l Litchfield Park Water & Sewer Corp., and by Briton Baxter, Co-Director, Utilities Division. on behalf
12 of Staff ("Signatories"). RUC() is not a signatory to the Settlement Agreement. The Settlement
13 Schedules are attached to the Settlement Agreement as Attachment A. The Settlement Agreement in
14 its entirety is attached to this Decision as Exhibit A.
15 A. Settlement Terms
16 The Signatories stated that the Settlement Agreement reflects the Signatories' agreement and
17 intent to settle and compromise on all claims and issues in the dockets, including. but not limited to,
18 the determination of an adjusted Fair Value Rate Base, establishment of a Revenue Requirement.
19 resolution of disputed issues involving corporate cost allocations and methodologies. the setting of
20 rates for water and wastewater utility service by the Company. and approval of the Financing
21 Application.
22 Section ll.D references a prior rate case involving Liberty Litchfield affiliates, which was
23 resolved through a settlement agreement.I9° This earlier settlement agreement included a resolution
24 concerning all disputes relating to capitalized overhead rates for the Corporate and West region shared
25 service costs, capitalized overhead post-test year plant additions, other capitalized overhead
26
1% Ex. A-3, p. 3, Ex. A-3, Appendix 4.
27
197 Ex. RUCO-7, P. 44.
198 Ex. s-3. P. 5 - 7.
28 199 Decision No. 81361 (June 18, 2025).
77 DECISION no. 82134

DOCKET NO. W-0I427A-25-0126. ET AL.
I adjustments. and cost pool allocations (the "Capitalized Overhead Provisions"). The Signatories agreed
2 that the Capitalized Overhead Provisions are incorporated by reference into this Settlement Agreement
3 and are fully binding against the Company.
4 The Settlement states that the terms and conditions of the current Agreement are just.
5 reasonable. fair. and the public interest in that they, among other things, establish just and reasonable
6 rates and purport to resolve the issues in this matter, and avoid unnecessary litigation expense and
7 delay.
8 In Section III of the Settlement Agreement. the Signatories address the main rate making terms
O being adopted:
l() Section lll.A. Revenue Requirement
I l The Signatories agree to a total Revenue Requirement for the water system of $2I.468.602.
12 resulting in an increase in revenues of $5,316,59l over test year revenues, or 32.92 percent. The
13 Signatories agree to a total Revenue Requirement of $3 I .585.039 for the wastewater systems. resulting
14 in an increase in revenues of$I0.015.953 over test year revenues, or 46.44 percent.
15 Section lll.B. Fair Value Rate Base
16 The Signatories agree to an FVRB of $70.007,480 for the water system and $136,328,067 for
I 7 the wastewater systems. The Signatories agree that the FRVB the is the same as its OCRB, as such. the
18 Company has not requested a Return on the Fair Value Increment. The Signatories state that they
19 determined and resolved the proposed FVRBs through negotiation and agreement on the disputed
20 issues present in pre-settlement testimonies as follows:
21 l) The Signatories agree to the inclusion in Rate Base of all in service. used and useful.
22 post-test year plant ("PTYP") as proposed by Staff in its Direct Testimony.
23 2) The Signatories agree to the inclusion of AFUDC in Rate Base. as proposed by the
24 Company. with the exception of an adjustment of ($83,463) for the water systems and ($6 l.606) for
25 the wastewater systems.
26 3) The Signatories agree to the inclusion in Rate Base of the Sarival Depreciation Deferral
27 of$5,204.3 I0 for the wastewater systems as approved by the Commission in Decision No. 80122.
28 4) The Signatories agree to other adjustments to Cash Working Capital. Plant
78 DECISION NO. 82134

DOCKET no. W-01427A-25-0l26. ET AL.
I Reclassifications. Plant Addition Removal. Corporate Plant adjustment. Contributions in Aid of
2 Construction ("CIAC"), Advance in Aid oIConstruction ("AIAC") as proposed by StaII.
3 5) The Signatories agree to the application of the INDOH provisions set forth in the
4 settlement agreement approved in Decision No. 81361 . discussed in Section Ill.c of this Decision. The
5 Signatories further acknowledge and agree that a capitalization rate for corporate costs of 14 percent
6 for APUC. and a capitalization rate of2I percent for West Region services costs by Liberty Litchfield
7 is appropriate and acceptable for Liberty Litchlields corporate allocations and shared services costs
8 for Liberty Litchtields current shared services provided to the Arizona entities.
9 6) The Signatories agree to adjustments for the corporate shared services costs allocated to
10 Liberty Litchfields regulated utilities in Arizona. which results in the removal of 50 percent of shared
l l services costs for Bonuses. Long-Term Incentive Plan. Board of DirectorsFees,Directors and Officers
12 Insurance. Meals & Entertainment. Travel. and Dues and Memberships. The Company agreed to the
13 removal of 100 percent of the Supplemental Executive Retirement Plan, Charitable Contributions,
14 Housing/Car Allowance. Gift/Awards. Employee Immigration Costs, and Employee Relocation Costs.
15 7) The Signatories agree to combined adjusted test year total Operating Expenses of
16 $32.987.485.
17 8) The Signatories agree to the adoption of the proposed CAT. which offers a discount on
18 water and wastewater bills for low-income customers. Deployed Military, and Disabled Military,
19 except that a customer may be eligible for only one discount. The low-income component of the CAT
20 is set at or below 200 percent of the Federal Poverty Level.
21 9) The Signatories agree to a Rate Case Expense not to exceed the lesser of either $400,000
22 or the actual Rate Case Expense incurred. recoverable through a monthly surcharge assessed over three
23 years.
24 Section lll.c. Cost of Capital
25 The Signatories agree to a Capital Structure consisting of54 percent equity and 46 percent debt.
26 which assumes Commission approval of the Financing Application. The Signatories also agree on a
27 l
28
l
l
i
79 DECISION NO. 82134
l

DOCKET NO. W-01427A-25-0l26. ET AL.
I Cost of Debt 0)5.45200 percent and a Cost of Equity of 9.75 percent. The Signatories agree to a Rate
2 of Return/Weighted Average Cost of Capital of 7.7 percent on both water and wastewater systems.
3 Section lll.D. Financing Application
4 The Signatories agree that the terms and conditions of the Company's proposed Financing
5 Application are reasonable.
6 Section lll.E. Tariffs. Adjustment. and Surcharge Mechanisms
7 I) In this Section. the Signatories agree that the Companys proposed Formula Rate Plan
8 ("FRP") (at that time the Settlement Agreement was filed it was referred to as the Cost of Service
9 Reconciliation Mechanism) would be addressed in a Phase II proceeding, rather than heard in the
10 current hearing.20'
I I 2 - 7) These terms adopt the Company's proposed revisions to Liberty Litchfields Off-Site
12 Hookup Fee Tariffs, the Company's proposed Pretreatment Tariff, as revised by Staff, the application
I3 of the FCCRM if the Commission rejects the proposedARAM: IFST. subject the requirements ofStaff,
14 the EWAT, and the updated Miscellaneous Service Charges. l
I I
15 In addition. the Settlement Agreement contains provisions agreed to by the Signatories
16 concerning Staff not having the power to bind the Commission. the Commission's independent
17 consideration and evaluation of the Settlement Agreement. the Signatories right to withdraw from the
I 8 Settlement Agreement if the Commission fails to adopt all material terms of the Settlement Agreement.
19 the Signatories accepting positions for the Settlement Agreement that they might not otherwise accept,
20 the non-precedential value of positions taken by the Signatories in the Settlement Agreement, and the
21 non-severability of the terms Agreement's terms.
22 B. Liberty Litchfield Testimony in Support of the Settlement Agreement
23 Ms. Rao testified on behalf of Liberty Litchfield in support of the Settlement Agreement. Ms.
l
24 Ran stated that all parties were invited to attend the settlement discussions. She notes that a public
25 notice of the settlement meeting was filed on February 5. 2026. The meeting was heldon February 17,
26
200 The Settlement Agreement originally stated that the agreed on cost of debt is 5.54. Schedule D-I to the Settlement
27
Testimony states that the Cost of Debt is 5.45 percent.
201 Subsequently, the Company's proposed FRP. now referred to as the Annual Revenue Adjustment Mechanism
28 ("ARAM") wasaddressed at hearing. As such, this provision is moot and not a term of the Settlement Agreement.
80 DECISION NO. 82134

DOCKET NO. W-0l427A-25-0 l 26. ET AL.
I 2026. and all parties-RUCO. Staff. and the Company-attended and participated in the settlement
2 discussions. Ms. Rao observed that the Company, Staff. and RUCO each had principals. attorneys, and
3 technical experts present. Ms. Rao described the discussions as open. transparent, detailed. frank. and
4 professional. Liberty Litchfield and Staff were able to reach an agreement in principle. but RUCO was
5 not. Ms. Rao asserted that the Settlement Agreement reflects reasonable compromise on initially
6 contested issues. Ms. Rao testified that she believes that the Settlement Agreement is just and
7 reasonable and in the public interest.202
8 Ms. Rao explained that after settlement discussions. Staff and the Company collaborated on the
9 preparation of a final settlement term sheet outlining the main components. Ms. Rao noted that the term
10 sheet was provided to RUCO on February 25. 2026. In addition, Liberty Litchfield prepared a draft of
l l the Settlement Agreement for the parties to review.
12 c. Staff Testimony in Support of the Settlement Agreement
13 Mr. Baxter testified in support of the Settlement Agreement on behalf of Staff. Mr. Baxter
14 testified that the settlement process was open. transparent. and inclusive, and that all parties actively
15 participated and had an opportunity to propose and discuss the resolution of any issue. Mr. Baxter
16 further testified that the parties each zealously advocated and represented their interests in the
I 7 settlement discussions in a candid but professional manner, and that he believes the compromises made
18 by the Signatories in the Settlement Agreement further the public interest. Mr. Baxter stated that the
19 Settlement Agreement vs / ill minimize additional costs to rate payers ifthe rate case had gone on to have
20 been fully litigated. Mr. Baxter noted that the Settlement Agreement produces a Revenue Requirement
21 that results in just and reasonable rates and that will allow the Company to continue to provide safe and
22 reliable service.203
23 The Settlement Agreement resolved a number of Revenue Requirement issues between the
24 Company and Staff. including those related to the Companys failure to record plant retirements since
25 mad-2o2o.2°' The Company explained that this was due to accounting software issues. Staff and Liberty
26 Litchfield resolved this issue in the Settlement Agreement noting that with the agreed upon adjustment.
27
202 Ex. A-l8. p. 14.
203 Ex. S-I I, pp. 3 -4.
28 204 Tr. at 1214.
81 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126, ET AL.
I "ratepayers will be made whole~205 The Company stated: "Going beyond this would overstate the
I 2 necessary adjustment.92°"
I
3 D. RUCO's Testimony in Opposition to the Settlement Agreement
4 RUCO asserted that the Settlement Agreement is not in the public interest for the following
5 reasons:207
6 . The proposed ROE of9.75 percent is not supported by the evidence and fails to account
7 for the reduction in risk to the Company if the ARAM is approved.
8 . The Settlement Agreement allows recovery of deferred amounts related to the Sarival
9 WRF to be included in Rate Base, the deferred depreciation expense should be
10 recovered as an Operating Expense.
l I • The Settlement Agreement allows for 12 months of PTYP as a pro forma adjustment.
12 regardless of whether the ARAM is approved. RUCO contends that if the ARAM is
13 approved. then inclusion in Rate Base is unnecessary to address regulatory lag.
14 . The Settlement Agreement does not include specific retirements. RUCO contended that
15 the Agreemcnts failure to account for retirements means that ratepayers will continue
16 paying for retired plant, thereby compounding Depreciation Expense.
17 . The Settlement Agreement does not adopt RUCOs proposed adjustments to Cash
18 Working Capital and annualization of Accumulated Depreciation.
19 Further. RUC() declared that Liberty Litchfield and Staff did not meet their burden to
20 demonstrate that the Settlement Agreement is in the public interest and noted that the Agreement "may
2] have been a result of compromise - but this itself is not sufficient to produce just and reasonable rates
22 or ensure a balance of the interests between the Company and the ratepayers. The Commission should
23 reject the Settlement Agreement and resolve each of the contested issues in the rate case on its own
24 nlerits.~208
25
26
205 Tr. at 1214.
27
206 Liberty Litchfield Closing Brief, p. 9.
207RU(Os Closing Brief. pp. 23 - 24.
28 208 Rllcos Closing Brief. p. 24.
82134
82 DECISION NO.

DOCKETNO. W-01427A-25-0126. ETAL.
I E. Settlement Agreement - Parties' Positions
2 The following tables provides a summary of the parties' positions as reflected in each party's
3 Direct Testimony. as well as the terms of the Settlement Agreement ultimately agreed upon between
4 the Company and Staff.209
5
SUMMARY OF POSITIONS - LITCHFIELD PARK WATER DIVISION
( l gregory Cum p.ny Staff Direct RI to Direct Settlement Agreement
6
Application (with FRP)
Piupused Revenue Rzqulremml $22,355,039 $21,087,196 SZ 1,385,339 S20.232,08l $21,468,602
7
Revenue Increase (S) $6,203,028 $4.93s.1ss $5,211,328 $4.090.070 ss.J 16,591
Revenue Increase (%) 38 up. 30 55% 32 40% 25 26% 32 92%
8
Adjusted Fur Value Rue Base $69.765,704 $69.028.70I $68,734,797 $60,657,355 $70.0074130
Opershng Expenses $16,461,756 s 1s.s20.29s so, I 39,532 41 s,61 1,325 S 16,027,612
9
Rate of Rewm x 45° / • 7 63% 7 65% 7 62'/o 7 77%
Cost of Debi s 69% 5 49% 5 of. 5 69% 5 45%
10
ROE 10 80% 9 45% Q 32'/ 0 no. 9.75%
(lpl\al S\ruclure Eqully%/D¢b\%) 54%/46% 54%/46% 54%/46% 54%/46% 54%/46%
I I
Fmanclng xpplicnnon - loan term lOyeals 10 years 10 yous l0 years 10 years
Cost of Semce Reeonaliahon Llbelty Lllchlield Proposes Plan of Opposes ARAM Liberty Liichfield md Sulhgree
12
Medmausm ("ARAM") or Formula Fil¢d ARAM Admlnls11.!mn lo move ARAM md lssaolled
Rules modaficanon issues to a Phase II proceeding
13
Rate Case Expense lWIIlel 8: $800,000 over 3 $400,000 over 3 years 900,000 over A years lower of S400.00or actual cost
Waslewner combined) yells over 3 years
14
Tariff& Miscellaneous Char l es
15 Updated HUF TlnfT Updated Tank Rucoxxullcnds appwul R¢»onlnl:nJ> Appmv.l No change lo Company prcpcsd
vfwwd
16 (Wsmmer Assistance TmlT Updned WM Recommmds Approval Recommends Approval No change lo Company ploposd
vwvwd
17 Federal Comphmce Cost Recovery Lihaty Lllchfield Recommends qapmvd . Recommazds Appmvd No change to Company pmposd
Mechlnnsm filed F((RM. mool If ARAM approved
18 mom If ARAM
approved
19 lnduslnd Fine Semce Tariff New Inn lf proposed Recommends lpprovd, Recommends Approval Liberly Litchfield agrees k) pmvndc
vwlh roqulremenl to I C0SS with next rue use filing
20 submll l cost of semce
study (COSS) for his
21 l\nHon the next me
cue
22 Emergency Wall AugmQ1l.Imn TnnlT proposed Recommends qmprovd Recommmds Approval No charge lo Company pmposd
layoff
23 Alls! Hours Scarce Chuge II s 75
lllilllllil
Cm\om¢rs Request
24 Reeonnecllon (Ddmqucnl) charge $*1r S 14 S 40 S 50
SUMMARY OF POSITIONS - LITCHFIELD PARK WASTEWATER DIVISION
25 Category Com pany Stiff Direct Rl(() Direct (without lu (() Direct So element Agreement
Applklion FRP) (with FRP)
26 Proposed Revenue Rcqullcmdll $33,165,465 SJl,l$J.l66 $30.837.737 $30,654,622 $3 I .sss.oJ9
Revenue Increase (S) so 1.5%,379 $9,584,080 $0,268,651 $0,085,536 $I0.0I 5,953
27 Revenue Increase (%) 53 76% 44 43% 42 97% 42 l2% 4644%
28
209 Tables I - 3 are found in Ex. AI8, Settlement Testimony of Manasa Rao. Attachment A.
82134
83 DECISION NO.

DOCKET NO. W-01427A-25-0126. ET AL.
»\d;usled Fall Value Rate Base $133,887,159 S1J2,693, I80 $125,767,526 l0 years $124,52l,S26 SI 36,328.067
I
Operating Expenses $21,855,682 321.028.676 $21,227,405 $21.I6886l $20,989.606
Rate of Rdum s 45% 763'/o 7.65% 7,b2% 7 77%
2
Cost of Dcbl s 69% 5 up. 5 69% s 69% 5 45%
ROE 1080% q 45% 9 32% 9 l7% 9 75%
3
(apllal S\n4c1urf: (Equaty%/D¢hl%) 54%/46% 54%/46% 54%/46% 54.16% / 54%/46°/o
Financing nppllcnuon - loin term l0 yells l0y eus l0 yous 10 yous
4
Cost of Servnce Reuoncnlnnnn Llhaly Lnchlield Proposes PIle of Opposer ARAM Lnhaty Lnchhcld and Sl.IT .free w
Mechamxm ("ARAM) or Formula Fnled ARAM A dmmlsmnon move ARAM md associated issues
5
R.les modlficmons lo a Phase It proceeding
Sanvil Deprecnlmn Deferral m $5.204.310 Excluded from Rate Bse md allow s lw overy of amonmmon No change lo Company proposal
6
Rate base expense md carrying charges baud on can of debt
Rate Case Expense (Wav 8 $800,000 over 3 8400.000 over 3 yon $400,000 over 4 yeas Low er of stoo 000 or ncnul :Oss
7
Wulew lef eombmed) y¢ll5 over J years
Tariff& Miscellaneous Char I es
8
l 1pdared HllF Tuff Updated Tnnff Rrcu1unw nds apprmn al Rc (y lllllll\d A pplov ll No change to Company piuposal
Vrov°¢~=d
9
Cus1oml Asslsluloe TlnfT Updated l.nff Recommends Reeommalds Apprnvd No charge to Colnplny pmposd
vl°v°5°4 Approval
I()
Preireaimeni Tllllf Updated TinlT self does not Recommends Approvll TlrIITrevls¢d to include staffs
proposed recommend q»prova1 suggcmons for PFOS is "reserved"
l I
Suggests resuhmmal
w llh rmonable PFOS
12
llll\llS
Aflcr Hours Servnce Charge Ni $75
13
Cuslomers Request
14 x. Resolutions
15
A. Terms of Settlement Agreement
16
l. Rate Base
17
Rctiremcnts- As discussed above. Liberly Litchfield did not record plant retirements
18
beginning in 2020 because of an accounting software issue that the Company stated went uncorrected
19
for several years. until it was identified through Staffs and RUCO's audit and data requests. We are not
20 persuaded that reconstructing the unrecorded retirements for that period was unduly burdensome as
21
claimed by the Company, the burden of that reconstruction is a consequence of the Company's own
22
failure to correct the underlying software issue when it first arose, and moreover. recording retirements
23
properly is required under the NARUC USoA.
24
During the hearing. the Company was directed to review and update its plant retirements for
25
each year from 2000 through 2024. Liberty Litchfield filed LFE A-33. which contained updated
26
retirement schedules Recording the previously unrecorded retirements causes the Depreciation
27
Expense on the affected plant to stop sooner. which in turn reduces the resulting accumulated
28
82134
84 DECISION NO.

DOCKET NO. W-0I427A-25-0126. ET AL.
I depreciation component of the Rate Base used for the revenue requirement calculations in this
2 Decision. Removing the unrecorded retirements affects Utility Plant in Service, Accumulated
3 Depreciation. and the plant amounts treated as fully recovered on the depreciation expense schedules,
4 the Company has captured these effects by redoing the B-2 roll forward schedule.
5 The effects of this correction extend beyond this case are that if the unrecorded retirements are
6 not removed. depreciation on the affected plant will likely continue to be reported and recovered
7 beyond this and future rate cases. which / is neither an accurate reflection of the Company's plant in
8 service nor a sound precedent for future proceedings. not to mention an excess burden on ratepayers.
9 Based on the evidence presented in LFE A-33 regarding Liberty Litchfields calculated plant
10 retirements. and related Accumulated Depreciation and Depreciation Expense. we find the corrected
I I amounts reflected in the schedules for the Water Division and the Wastewater Division attached to this
12 Decision as Exhibit C.
13 Further. it appears that other Liberty affiliates have the same problem.210 Thus. we find it
14 reasonable to direct the Liberty Utilities Arizona public service corporations to review their plant
15 retirements and depreciation to ensure that these accounts completely and accurately reflect the correct
16 accounting and account balances related to plant retirements. We find that it is reasonable to direct
17 these affiliates of Liberty Utilities to provide the Utilities Division Co-Directors a report of the results
18 for each of Liberty Utilities Arizona utilities within 180 days of the effective date of this Decision"
19 If any Liberty Utilities affiliates have any presently pending rate cases before the Commission. the
20 relevant entities shall file a report for each of those utilities, including revised rate schedules reflecting
21 any changes to Plant-in-Service, Accumulated Depreciation and Depreciation Expense and any flow
22 through for other schedules.
23 Sarival Depreciation Deferral - We find that the Settlement Agreement's regulatory treatment
24 to include the deferred Sarival Water Reclamation Facility Depreciation Expense in Rate Base is
25
26
2loMr. Sabo stated that "the company doeshave essentially a company-wide accounting system, so it's the same for all the
different subsidiaries in Arizona. And as noted in that attachment to Ms. Brown's testimony, l believe it was Attachment 6,
27 the data response. there was a problem with the prior accounting system and so now they've adopted a new accounting
system and are working on getting that all squared away so we dont have to deal with this again." Tr. at 895.
28 211 Liberty Utilities may provide one comprehensive report of each of its Arizona utilities.
85 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
I appropriate and we adopt the inclusion of $5,204.3 I0 for the Sarival Depreciation Deferral in the
2 Wastewater Division's Rate Base and the inclusion of the related amortization in the amount of
3 $243.656 in the Depreciation Expense. Decision No. 80122 authorized Liberty Litchfield to record
4 Depreciation Expense associatedwith the Sarival Plant. subject to the removal oflNDOH and AFUDC,
5 and reserved any finding ofprudency until the details could be reviewed in the context of a general rate
6 case filing. No party has argued that the Sarival Plant. or the accrued depreciation associated with it.
7 was imprudently incurred. and recovery in Rate Base is the standard treatment for a regulatory asset of
8 this kind. We therefore adopt this term of the Settlement Agreement.
9 2. Cost of Capital
10 - The Settlement Agreement adopts an ROE of 9.75 percent. RUCO contends that this is
l l too high and should be lowered to reflect the reduced risk faced by the Company with the adoption of
12 an ARAM. However. unlike in the UNSG case where we lowered the COC toreflect reduced risk, the
13 ARAM POA in this case does not allow any changes to the Capital Structure or COD. The ARAM
14 POA in this case does permit three months of PTYP in the first Annual Update. but no PTYP in
15 subsequent years. These terms create more stability and certainty about the impacts of annual expenses
16 and capital investments on rate increases and decreases. The inclusion of an ARAM greatly reduces
17 regulatory lag, which substantiates the reduction in ROE in this case. Thus. the Commission finds it is
18 reasonable to approve an ROE of 9.4() percent. which results in an ROR on the FVRB of 7.58 percent.
19 3. Operating Expenses
20 EADIT - For the Water Division. the Settlement Agreement proposes test year Depreciation
21 Expense of $5,376,858 which appears to reflect among other items an annual refund of EADIT in the
22 amount of$75.l45. It appears that the computation supporting the Depreciation Expense is intended to
23 reduce Depreciation Expense by $75,l45 as a means to refund EADIT. However. a review of the
24 computations supporting the Settlement Agreement indicates that the EADIT refund of $75.l45 is
25 added and increases the Depreciation Expense.212 To reflect a refund. we recalculate the Depreciation
26 Expense to reduce the Depreciation Expense for the EADIT refund and reduce the Depreciation
27
212 Conversely, the depreciation expense for the Wastewater Division correctly reduces depreciation expense for its
28 respective EADIT refunds of$89.26l.
86 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
I Expense by $I50,290.
2 Income Tax Expense - The Settlement Agreement proposes test year Income Tax Expense of
3 ($92.093) and ($48.7I 4) for the Water and Wastewater Division. respectively. In the Settlement
4 Agreement schedules, the Company correctly attempts to calculate IncomeTax Expense based on test
5 year revenues. expenses excluding EADIT refunds, and synchronized interest. We agree in concept
6 with the Company's proposed treatment to remove EADIT refunds213 from test year expenses in its
7 Income Tax calculations. since EADIT refunds should not result in a change to the Company's Income
8 Tax Expense. For both divisions. the Company adds the EADIT refunds of$75.l46 and ($89.26I) for
9 the Water and Wastewater Division. respectively. to the Operating Expenses used in the Income Tax
10 calculations. instead of subtracting the correct EADIT refunds. Accordingly. we find that it is
I I reasonable to recompute Income Tax Expense based on test year expenses excluding the corrected
12 EADIT refunds. Including the other adjustments discussed herein. we find that the test year Income
13 Tax Expense for the Water Division is ($63.454) and ($l 54.444 )for the Wastewater Division.
14 Board of Directors Fees - The Commission finds that Board of Directors are elected by
15 shareholders to primarily serve shareholders. and thus. it is reasonable to remove 100 percent of the
16 Board of Directors Fees from Operating Expenses. In the Settlement Agreement. the Signatories had
17 agreed to remove 50 percent of the Board of Directors Fees for a total amount of $45,282.6l. The
18 remaining reduction allocated to the Water Division would be $l l.l 18.41 and $34.l 64.20 for the
19 Wastewater Division. reducing the line item of"Contractual Services - Management" for each Division
20 in the Settlement Agreement's C schedules.
21 Based on the foregoing we approve the Revenue Requirements for the Water and Wastewater
22 Divisions as reflected in the table below:
23 REVENUE REQUIREMENTS FOR \\ATER AND \\ / ASTEWATER Dlvlslons
_
24 WATER DIVISION VVASTEWATER DIVISION
25 Fair Value Rate Base $70,095,723 $ I 36,445,258
26 Adjusted Operating Income $ I .640,773 $3,043448
27
28 213 The Company includes EADlT refunds in it depreciation expense that is included in test year expenses.
87 DECISION n o . 82134

DOCKET NO. W-01427A-25-0126, ET AL.
I Current Rate of Return 2.34% 2.23%
2 Required Operating Income $5.3 I 5.367 $I0,346,736
3 Required Rate of Return on FVRB 7.58% 7.58%
4 Operating Income Deficiency $3,674,594 $7,303,288
5 G(RF 1.3676 1.3510
6 Increase in Gross Revenue Requirement $5,025,383 $9,866,394
7 Adjusted Test Year Revenues $16,l52,01l $2 l,569,086
8
Revenue Requirement $21,177,394 $31,435,480
9
Percent Increase 3I .I I % 45.74%
10
4. Rate Design - We find that the proposed Rate Design adopted in the Settlement
I I Agreement is reasonable. Based on our findings herein. we revise the rates contained in the Settlement
12 Agreement to reflect the authorized Revenue Requirement as set forth in Exhibit D to this Decision.
13
5. Rate Case Expense Surcharge - There are several ways to recover Rate Case
14 Expense ("RCE"):
15
Include the RCE in base rates as a test year Operating Expense and its recovery will
16
continue until a decision in a subsequent rate case removes it from base rates.
17
Include the RCE as a Surcharge based on unweighted customer counts. Every customer
18
in each class would pay the same amount each month until the RCE is recovered. The
19
adopted surcharge would be determined over a number of years to be determined by the
20
Commission during a companys general rate case.
21
Include the RCE as a Surcharge based on weighted customer counts. Under this
22
methodology, customers would pay an amount each month based on their relative meter
23 sizes until the RCE is recovered. Unweighted customer counts are assigned and
24
multiplied by a meter multiplier to determine a weighted count for each meter size. The
25
weighted counts are summed and used as the divisor to determine RCE for the smallest
26
meter in the calculation. The charges for larger meter sizes are then calculated by
27
multiplying the rate for the smallest size times the respective meter multiplier. The
28
88 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
I amount of the monthly surcharge would be determined based on a recovery period lo be
2 determined by the Commission during a company's general rate case.
3 We adopt the Settlement Agreements RCE of $400,000. to be amortized over three years
4 through an RCE Surcharge. A three-year amortization period is consistent with the Commission's
5 recent decisions authorizing RCE recovery for other Arizona utilities. The Company has already
6 incurred the majority of these costs. The RCE Surcharge mechanism includes no carrying charge and
7 a longer amortization period would only increase the Company's unrecovered carrying costs without a
8 corresponding benefit to ratepayers. The Settlement Agreement also requires that the Surcharge self-
9 terminate if the expenses are recovered in full before the three-year recovery period ends.
10 Further. we modify the parties' proposal by adopting an RCE Surcharge calculated using
l l weighted customer counts by meter size. We decline to condition recovery of these already-incurred
12 expense on the outcome of the ARAM addressed in Section XI. below. The RCE calculation schedules
13 are attached to this Decision as Exhibit E.
14 a. Water
15 Including an RCE Surcharge of $0.20 per month. the Revenue Requirement and Rate Design
16 adopted herein result in an increase of $5.91 . or 27.98 percent. from $2 l . I2 to $27.03 for a residential
17 water customer on a 3/4-inch meter with a median usage of 6.500 gallons per month.
18 b. Wastewater
19 Including an RCE Surcharge of $0.26 per month. the Revenue Requirement and Rate Design
20 adopted herein result in an increase of $20.89, or 46. l9 percent, from $45.23 to $ 66.12 for residential
21 customers paying a fiat rate for wastewater.
22 B. Withdrawal of Section lll.E.l Phase II for Formula Rates ._ Section IlI.E.I of the
23 Settlement Agreement. which would have held these dockets open for a Phase II proceeding limited to
24 the Companys proposed ARAM is moot. Accordingly. we address the ARAM on the existing record
25 in this docket.
26 c. FRPs generally and RUCO's Opposition
27 Formula rate mechanisms are not a novel or extreme departure from traditional rate making.
28 They have long been used by FERC. and at least 14 states have approved some form of formula rates
89 DECISION NO. 82134

DOCKET NO. W-0I427A-25-0I 26. ET AL.
I for utilities. The ARAM proposed here remains rooted in a historical test year rather than a future test
2 year. and each Annual Update will result in an FVRB determination and be based on actual. verified
3 historical data rather than projections.
4 We are persuaded that an FRP is in the public interest. An FRP promotes rate gradualism by
5 replacing large. infrequent rate increases with smaller. more frequent adjustments, reducing the rate
6 shock that can accompany a five or more year gap between rate cases. Second. the ARAM reduces-
7 but does not eliminate-regulatory lag. allowing the Company to recover costs more promptly and
8 providing more predictable and stable revenue. Third. the FRP proposed by the Company and Staff is
9 symmetrical and bidirectional: it does not guarantee annual increases. and customers will see rate
10 decreases in years when the Company's earnings exceed the deadband. Fourlh. the ARAM increases
l l transparency through mandatory quarterly reporting on capital expenditures over $20.000. with
12 supporting documentation available to Staff. RUCO, and other interested parties on request.
13 RUCO raises several legal objections to the ARAM. RUCO argues that the ARAM effectively
14 guarantees the Companyls authorized return. in tension with the fair value clause of the Arizona
15 Constitution. Article 15. Section 14. We disagree that the ARAM guarantees that the Company will
16 earn a return. Several of the ARAM's inputs-including the COD and the Capital Structure ratio-are
17 fixed regardless of the Companys actual costs. As proposed. an ARAM surcharge/sur-credit would be
18 partly volumetric and therefore exposed to usage risk. Any recovery under the ARAM remains subject
19 to regulatory lag for at least the term of the Annual Update process. Further. Arizona law does not
20 forbid a utility from earning its authorized return. Rate making is intended to afford the utility a
21 reasonable opportunity to do so, and the ARAM supports that opportunity without guaranteeing it. The
22 ARAM Annual Update process requires the Company to submit, and the Commission to consider.
23 extensive financial information-including Rate Base and Revenue Requirement schedules
24 comparable to those required in a full rate case-before any adjustment takes effect. thus ensuring that
25 rates remain just and reasonable.
26 RUCO further argues that the ARAM denies interested parties due process because it may
27 resolve issues without an evidentiary hearing in every instance. We disagree. Due process requires
28 notice and a meaningful opportunity to be heard. not a full evidentiary hearing in every circumstance,
90 DECISION NO. 82134

DOCKET no. W-0 I427A-25-0I26. ET Al..
I particularly where the legal claims do not turn on disputed facts. The ARAM POA affords RUCO and
2 other interested parties a defined information exchange period. discovery rights that extend
3 continuously between rate cases. an informal objection and response process. and the ability to trigger
4 a formal hearing before the Hearing Division where a genuine. unresolved evidentiary dispute exists.
5 RUCO also argues that the ARAM creates an incentive for the Company to overspend on capital
6 and operating costs. and that its dead band structure rewards inefficiency by allowing the Company to
7 recover its authorized return whenever its earned return falls below the dead band floor. As for
8 Operating Expenses. the record does not support or refute the premise that the ARAM encourages
9 inefficient spending. This assertion is something that can only be argued on a case-by-case. or
10 company-by-company. basis and will be addressed during the review period for each Annual Update.
I I As for capital investment. the ARAM does not eliminate regulatory lag. and any incentive to over-
12 invest would arise only if the allowed COC were set above the true COC. which is not the case here.
13 More fundamentally. the ARAM POA subjects every capital addition to the same prudence review that
14 applies in a general rate case. Each addition is subject to scrutiny by Staff. RUCO. and other interested
15 parties. and no annual adjustment takes effect absent Commission approval. We find that the ARAM's
16 prudence safeguards adequately address RUCOls concern.
17 RUCO also argues that the ARAM will compound rate increases year over year. so that the
18 cumulative cost to ratepayers will exceed the cost of the same revenue increase recovered through
19 traditional rate making. because each Annual Update incorporates the prior year's updated rate base.
20 We recognize that because Rate Base is updated annually and each update carries forward. the Rate
21 Base component of the Revenue Requirement does build upon prior updates in a manner that recovery
22 under a single historical test year does not. But this reflects the timing of recovery. not an inflation of
23 the amount the Company is entitled to recover. The earnings component of each Annual Update does
24 not compound. and each Annual Update is a fresh Revenue Requirement calculation based on actual.
25 verified historical data for the prior year rather than a roll-forward of a previously authorized increase.
26 To the extent RUCOs point is that ratepayers pay sooner under the ARAM than they would under the
27 traditional approach of larger. less frequent rate cases, that is the necessary corollary of reduced
28 regulatory lag. and it is offset by the potential corresponding benefit of smaller. more gradual
91 DECISION NO. 821
I
I I

DOCKET NO. W-0I 427A-25-0126, ET AL.
I adjustments and the reduced risk of rate shock. We do not find that the ARAMls annual updating of
2 Rate Base renders the resulting rates unjust or unreasonable.
3 Finally, RUCO argues that regulatory lag itself serves a valuable function by imposing
4 discipline on utility spending and investment decisions. and that by reducing that lag the ARAM
5 removes an incentive for the Company to operate efficiently. We agree that regulatory lag has
6 historically been a check on spending in ratemaking, but we do not agree that the ARAM eliminates
7 that role. The disciplining function RUCO describes is. in any event. better served in this mechanism
8 by the prudence review and annual audit that accompany each Annual Update than by the impact of
9 delayed cost recovery. Balanced against the benefits the ARAM provides-rate gradualism. more
10 predictable and stable revenue. symmetrical and bidirectional adjustments, and enhanced
I I transparency-we find that the reduction in regulatory lag effected by the ARAM. as revised herein
12 below. is consistent with the public interest.
13 D. Terms of the Final Proposed ARAM and Revisions
14 The final proposed ARAM POW" is attached to Staff`sand the Company's Joint Closing Brief
15 as Attachment A and attached to this Decision as Exhibit B.
16 In our discussion of FRPs generally. and the ARAM specifically, we acknowledge the benefits
17 offered by the implementation of an FRP: however. after review of the final proposed ARAM POA we
18 find that the certain changes are necessary to ensure that the ARAM POA contains sufficient guardrails
19 to protect ratepayers and promote the public interest.
20 New Section II - Definitions
21 At present. the ARAM POA does not have a separate section setting out defined terms in one
22 place. As it stands, there are defined terms sprinkled throughout the ARAM POA. lt will be more
23 convenient for anyone attempting to understand the ARAM if all terms are defined from the start. For
24 example, Section A.ll has a statement at the end that reads that work papers will be provided to the
25 parties in the docket. including the Commission, Staff. and "Customers per election to be an interested
26 party per Section VI (collectively. "Interested Parties")". The definition of interested Parties should be
27
214 The ARAM POA attached to Staff's and Company's Joint Closing Brief is a red-lined version reflecting thechanges to
28 theARAMPOA attachedto the Company's Notice of Filing of Settlement Testimony begins on PDF page 176 of the filing.
92 DECISION NO. 82134

DOCKET NO. W-01427A-25-0126, ET AL.
I more clearly stated and not pan of a run-on sentence in a term describing timelines. The Section should
2 be placed near the beginning of the ARAM POA for clarity in understanding the rest of the POA. In
3 addition. we note that the phrase "Customers per election to be an interested party..." is obtuse. If it
4 means "Customers who have chosen to receive information regarding the Annual Update." it certainly
5 is not clear that that is that r it means. One must search further into the ARAM POA to find out. Having
6 defined terms in one place and at the beginning of the document will add clarity and aid everyone's
7 ability to understand its directives. Thus. a Definitions section should be added immediately following
8 "Section l. Applicability."
9 Specifically. as to "Interested Parties." Section ll.a currently reads "workpapers will be
10 provided to the parties in the docket. including the Commission, Staff. and Customers per election to
I I be an interested party per Section Vl (collectively. "Interested Parties")." In the interest of due process,
12 we believe that the definition of Interested Parties should be broadened to "Commission. Staff.
13 Customers who have chosen to receive information regarding the Annual Update. and any persons or
14 entities who are not currently Interveners but have applied for and have been granted Intervention prior
15 to the Filing Date." The section continues to provide that the required documentation shall be filed in
16 this docket for the benefit of the public and Interested Parties.
17 Presently. the ARAM POA does not contain language regarding an Interested Party's ability to
18 intervene. Unless they have previously filed for Intervention in this docket, Interested Parties are not
19 considered to be interveners in this matter. Intervention grants legal party status and. among other
20 things. entitles a party to present sworn evidence at a hearing and to cross-examine other parties'
21 witnesses. Intervention is not required for Interested Parties to participate in the informal Annual
22 Update process. including the Annual Meeting and the Information Exchange Period. Intervention is
23 not required to submit written public comments or appear at an evidentiary hearing to provide public
24 comment. llowever, in order to present evidence in the Formal Challenge Process before the Hearing
25 Division. an Interested Party who has not previously intervened must file an application to intervene.
26 Upon the granting of the application. Interveners will be considered a party and added to the service
27 list for this docket.
28 Accordingly. we find that language should be included in the Definitions section regarding
93 DlClSION NO. 82134

DOCKET no. W-01427A-25-0126, ET AL.
I interveners and intervention.
2 Intervenor: In relation to the ARAM Annual Update process, an Intervenor is an Interested
3 Party that seeks to become a party to the docket for the purposes of participating in the Formal
4 Challenge Process.
5 Intervention: In relation to the ARAM Annual Update process. Intervention is the procedure
6 through which an Interested Party joins the case as a party to the docket. Intervention allows an
7 Interested Party to participate in the Formal Challenge Process before the Hearing I)ivision with all the
8 rights and obligations of a party to this docket.
9 We find it reasonable to direct the Company and Staff. to work together to prepare a "Section
10 II. Definitions" portion for the ARAM POA and re-number the remainder of the ARAM POA
I I accordingly. Further. if RUCO wishes to participate in drafting the Definitions section of the ARAM
12 POA. it may do so at its discretion.
13 The remainder of this discussion of the ARAM POA will reflect the numbers in the version as
14 proposed and filed by the Company and Staff.
15 II. Annual Filing Requirements
16 This Section explains that the Annual Update will be filed by May Islof each year. and that the
17 necessary documents and workpapers will be provided to Staff and Interested Parties and will be filed
18 in the dockets underlying this matter.
19 Section Il.c states that "The first Annual Update shall be filed by May l. 2028."
20 We believe this should be revised to state "The first Annual Update shall be filed no earlier than
i
i
21 May l. 2028."
22 Section ll.d reads that the Annual Update shall use a historical test year,reflect changes in the
23 revenue requirement consistent with the terms of the ARAM POA, and include an earnings test. In
24 addition. it afflirms that the deadband shall be +/- 50 basis points.
25 Sections Il.e - h outline. among other things:
26 • The required schedules to be filed:
27 . Explains that the ARAM Rate Template inputs for certain ratemaking elements shall be
28 a stated value to be used in the Template until changed by the Commission in a full rate
94 DECISION NO. 82134

DOCKET NO. W-01427A-25-0l26. ET AL.
I case. The stated values shall be those authorized by the Commission in this Decision,
2 . The Annual Update will identify voluntary Rate Base or expense adjustments made by
3 the Company and the Rate Base and expense adjustments directed by the Commission,
4 . The inputs for the ARAM Template shall be maintained consistent with the NARUC
5 USoA;
6 The Annual Update shall disclose any accounting changes or adjustments that effect
7 the inputs to the ARAM Template:
8 . The Annual Update will provide notice of changes in the Companys accounting
9 policies,
10 . The Annual Update will note any aspects of the ARAM Rate Template. or its inputs that
l l are the subject of an ongoing legal dispute:
12 . The Annual Update is subject to review and challenge in accordance with the procedures
13 set forth in the ARAM Protocols.
14 In order to allow the Commission to evaluate the requested Annual Update and fulfill its
15 Constitutional obligation to approve just and reasonable rates. it is reasonable and in the public interest
16 for the following provision be added: "The Company shall provide a filing with the Annual Update
17 indicating the Consumer Price Index for All Urban Consumers ("CPI-U"). U.S. City Average, All Items
18 (1982-l984 = l 00). as published by the United States Bureau of Labor Statistics as of December 31 of
19 the test year." This filing will be solely for informational purposes to provide a point of comparison to
20 the increased costs requested by the Company. especially since there is no annual cap or aggregate cap
21 for the amount of the Annual Update increases.
22 Section Ill. General Policies of the ARAM POA
23 This section includes a number of defined terms that should be included in Section II.
24 Definitions. such as "Filing Date" and "Fundamental Predicates." It also notes that the ARAM
25 surcharge or sur-credit shall not become effective until approved by the Commission.
26 However. we believe that in order to be consistent with prior Commission decisions regarding
27 the implementation of an Annual Rate Adjustment Mechanism. we direct Liberty Litchfield to make
28 corresponding revisions to Attachment A Plan of Administration as well as to the ARAM Template
95 DECISION NO. 82134

DOCKET NO. W-0I 427A-25-0126. ET AL.
I that any ARAM adjustment will be rellccted in new Commission-approved rates for each customer
2 class. This makes clear that the ARAM is a change in rates and is not misrepresented as a surcharge .
3 Section IV. Interim Documentation Provided
4 This section states that to increase transparency and ease administrative burden. Liberty
5 Litchfield shall file in the underlying docket on a quarterly basis. certain information related to capital
6 expenditures placed in service. lt also notes that Staff and Interested Parties may request supporting
7 documentation for the quarterly data. The first interim I)ocumentation shall be filed no later March I.
8 2027.
9 Section V. ARAM Rate Design
l() This section of the proposed ARAM POA provides that a surcharge/sur-credit will follow the
l l cost of service revenue allocation and rate design approved in this Decision and apply to all customers
12 except customers on a market rate (i.e. effluent water sales) or contractual rate.
13 As previously directed above in connection with Section Ill ofthc POA. Liberty Litchfield is
14 directed to revise this section of the POA to eliminate reference to a surcharge/sur-credit and explain
15 that any revenue adjustment will be to rates that follow the cost of service revenue allocation and rate
16 design approved in this Decision. We also direct Liberty Litchfield to revise the remainder of the
17 ARAM POA to reflect this resolution of the rate design.
18 Section VI. ARAM Customer Notice Requirements
19 Annual Filing Notice - According to this Section. the Company will provide notice to all
20 customers at least five days prior to filing the Annual Update. The notice shall include average customer
21 bill impacts per the Companys Annual ARAM filing and ARAM timeline and process information. In
22 addition. the Company will deliver the notice using each customers elected communication method.
23 The Company will also post the notice on its website and "make available an option to elect being
24 included in further notifications as an interested party."
25 In the interest of due process and to ensure that customers have sufficient time to make sure
26 that they will be included in the process if they wish. we find that it is reasonable require the Notice of
27 the Annual Update to be provided to customers. posted on the Companys website. and filed in this
28 docket 15 days prior to the filing of the Annual Update instead of five days. Further. the phrase "make
82134
96 DECISIONNO.

DOCKET NO. W-0 I427A-25-0126, ET Al..
I available an option" is not clear. The language should state that the Company shall post a link on its
2 website "to sign up to receive further notice from the Company about the Company's Annual Update."
3 The electronic notice shall also include the same link. Customers receiving their communications
4 through first class mail shall be advised of the link's availability on the website. This notice should be
5 prominently placed on the paper notice, on the email, and on the website.
6 The information in the Pre-Filing Notice shall include the following language:
7 "In addition to following the Annual Update process as an Interested Party via the link on the
8 Companys website. a customer, or any entity directly and substantially affected by the proceeding,
9 may apply to become an intervenor in this case.Interested Parties are not considered to be Interveners
10 in this matter. Intervention provides legal party status. which. among other things, legal party status
l l entitles an Intervenor to present sworn evidence at a hearing and to cross-examine other parties'
12 witnesses. Intervention is not required for Interested Parties to participate in the informal Annual
13 Update process. including the Annual Meeting and the Information Exchange Period. Intervention is
14 not necessary if you wish only to submit written public comments or appear at an evidentiary hearing
15 to provide public comment. However. in order to present evidence in the Formal Challenge Process
16 before the Hearing Division. an Interested Party who has not previously intervened must file an
17 application to intervene.
18 Information about what intervention means, including an explanation of the rights and
19 responsibilities of an intervenor. is available on the Commissions website (uww.uzcc.gov) by clicking
20 on "Divisions" and then "Hearing" and then "Intervene in a Case." The in fomiation includes a Sample
21 Intervention Request and a Fillable Intervention Request Form. Intervention requests must be served
22 on all parties to the docket. An Interested Party who wishes to apply for intervention may do so at any
23 time. but all requests to Intervene must be filed no later than 5 business days after the Final Update
24 Filing. Parties who object to an Interested Partys intervention must file in the docket a Notice of
25 Opposition to Intervention no later than give business days after the Intervention Application is tiled."
26 ARAM Revised Rate Implementation Notice - This provision states that within 30 days after
27 the Commission issues a decision in the ARAM filing. the Company shall provide Notice to all
28 customers about the implementation of revised rates. using the customers chosen form of
97 DECISION NO. _82134

DOCKET NO. W-01427A-25-0126, ET AL.
I communication. We believe that the Notice must include a summary of the calculations. and the effect
2 of the implementation of the revised rates. with a brief summary of some of the larger capital
3 expenditures affecting the ARAM increase or decrease.
4 Section VII. Annual Review Procedures and Timelines
5 The following table compares the timeline outlined in the proposed ARAM POA in this case to
6 the timeline authorized for UNSG by the Commission in Decision No. 81653.215
TIMELINE COMPARISON
7 The terms used below rcllect the Ian us e ado red in each ARAM
LIBERTY LITCHFIELD fINS GAS
8
Process Step Deadlines E\8ll1l)l0 Deadlines Example
9
Dates Dates
Pre-Filing Notice 5 days prior to April 25 PreFiling Notice Approximately 16 August 15
10
May I days prior to
Se I tember l
l l
Annual Update Filing May I May I Publication Date On or before September I
on website and docket Se tember I
12
Annual Meeting 20 - 30 days from Between Annual Meeting 20 - 30 days from September 20
I3 Filing Date May 20 Publication Date - 30
Ma 31
Information Up to 45 days after June 15 Information 60 days from October 3 I
14
Exchange Period Filing Date Requests and Publication Date
15 Informal Chatter es
Company Responses Within 10 days of Rolling Company 20 days from November 20
16 to Information each request Responses to receipt / 80 days
Requests Informal Challenges from Publication
17 Date
Company Notice of Within 5 business Rolling Informal Challenge 90 Days from November 30
18 Opposition to an days Resolution Publication Date
Information Re | rest
19 Final Update Filing 60 days from June 30 Formal Challenges 100 Days from December 10
Annual Update Publication Date
20 Filin
Formal Challenge No later than 90 July 31 Company 20 Days from December 30
21 Filing Deadline days after Annual Responses to Receipt / 120 Days
Update Filing Formal Challenges from Publication
22 Date
Company Response Within 10 days of Rolling Staff Challenges 140 Days from January 19
23 to Formal Chalenge Formal Challenge and Responses to Publication Date
Filing Interested Party
24 Formal Chatter 1 es
Staff Proposed Order Within 120 days August 3 l Company 20 Days from February 8
25 if no Formal amer Annual Responses to Staff Receipt
Chalenge or Update Filing Challenges
26 Chatter e dismissed
Commission Final Within 150 days September Hearing, or Staff 180 Days from February 18
27 Order - No Formal after Annual 30 Re 0 0 rt an Order if Publication Date
28 2ls The UNSG ARAM is the only ARAM previously approved by the Commission to date.
98 DECISION NO. _82134

DOCKET NO. W-01427A-25-0126, ET AL.
Challenge Filing Dale II Hearing not ._-__|
I Re I uired
If Formal Challenge Hearing must be September Commission Order 210 Days By End of
2 Requires Hearing completed within 30 March
120 days of
3 Annual Update
Filin l
4
ROO for Formal Within 150 days September Rate Update April I
Challenge after Annual 30 Effective Date l
5 U I date Filin 0
Commission Final Within 180 days October 3 I
6 - - j
Order - Formal after Annual
Challen e U date Filin x
7
8 Pre-Filing Notice - As proposed. five days prior to May I. Liberty Litchfield will post the
9 proposed ARAM Annual Update on its website and notify all interested parties to the docket of the
10 Annual Update's availability. Based on the comparison between the two timelines, Liberty Litchfield
| I expects its Annual Update to take no longer than six months compared to UNSGs seven months. The
12 timeframes are fairly comparable and we find that the proposed timeline is generally reasonable as
13 explained in more detail. below. However. as noted above. we believe it is in the public interest to
14 require the Company to provide notice of the upcoming Annual Filing no later than April 15.
15 Annual Filing - The Annual Update will be filed in the underlying rate case docket. Included
16 with the Annual Update will be all models and workpapers electronically in native format with all
17 formulas and links intact. The Annual Update will be provided to Staff and Interested Parties.
18 Annual Meeting - The Company will organize an Annual Meeting among Staff and Interested
19 Parties between 20 to 30 days after the Filing Date. Staff and Interested Parties will have the
20 opportunity to seek information and clarifications from the Company about the Annual Update.
Information Exchange Period - Interested Parties have 45 days from the Filing Date to review
21
22 the Annual Update and submit Information Requests. The Information Requests will be limited in
23 scope to the proper application of the ARAM Protocols and Template, to information related to
24 questions about accuracy and prudency, shall not solicit information concerning costs or allocations
25 where the methodology has already been determined by the Commission, and the Information Request
26 may not be directed at determining whether the ARAM Template is just and reasonable.
27 Information Request - The Company shall make a good faith effort to respond to Information
28 Requests within 10 days of receipt. If the Company opposes items in the Information Requests. it will
99 DECISION no._82134

DOCKET NO. W-0I427A-25-0126. ET AL.
I notify the requesting party within five business days. This applies to both the Informal and Formal
2 Challenge process. The Company may require that a protective agreement be signed before it provides
3 sensitive or confidential information. To the extent that an Interested Party and the Company cannot
4 resolve the dispute. they may seek resolution from the Commission's Hearing Division.
5 Further Objections- Additional objections from Interested Parties will not be permitted beyond
6 45 days after the filing date.
7 Final Update Filing - The Company will provide a Final Update Filing no later than 60 days
8 from the Filing Date and will provide Staff and Interested Parties with all the supporting models and
9 work papers electronically in native format with all lOnnulas and links intact. The Final Update Filing
10 will include any revisions accepted by the Company during the Information Exchange Period.
I I Formal Challenge Process - An Interested Party who has submitted objections to the Annual
12 Update that the Company has not accepted may challenge the Annual Update formally. clearly
13 identifying the action or inaction that is alleged to violate the ARAM Template or the ARAM Protocols.
14 The Formal Challenge must be filed in the underlying rate case docket no later than 90 days after the
15 Filing Date. The Formal Challenge must state the specific relief or remedy requested and the basis for
16 that relief, reference all relevant supporting documents. verify that the objection occurred during the
17 Information Exchange Period.
18 An Interested Party who has not yet applied for or been granted Intervenor status may file a
19 Formal Challenge. but if a hearing is scheduled. the Interested Party must file a Request for
20 Intervention.
21 Service of Formal Challenge - The party raising the Formal Challenge must serve a copy of the
22 Formal Challenge on the Company. Any response by the Company must be filed within 10 days from
23 the Fontal Challenges filing.
24 Hearings - If the Hearing Division or assigned Administrative Law Judge determines that a
25 hearing is necessary to resolve a Formal Challenge. the hearing must be completed within 120 days of
26 the Filing Date. In lieu of a hearing, the Company and Interested Parties with unresolved Formal
27 Challenges may elect to submit written filings with the consent of the llearing Division or assigned
28 Administrative Law Judge.
100 DECISIONNO. 82134

DOCKET NO. W-01427A-25-0l 26, ET AL.
l We find it is reasonable to promote due process and for all unforeseen circumstances to add
2 that: "In the event of a Formal Challenge, at the request of the challenging party or at the Hearing
3 Divisions discretion. upon a showing of good cause, the Hearing Division my extend the timeline for
4 up to 30 days."
5 Staff Proposed Order / Commission Decision - lfno Formal Challenge is filed, Staff will draft
6 and file a Proposed Order within 120 days after the Filing Date. The Commission should then issue a
7 final Order on the Annual Update within 150 days of the Filing Date.
8 While we do not find the proposed timeline to be unreasonable. we find that it is in the public
9 interest to allow for more flexibility in the issuance of a final Order due to the uncertainty of the
10 Commissions calendar. which may not allow for an Open Meeting to be scheduled to meet the stated
l l deadline. We find that language should be added that provides: "The Commission may consider the
12 Proposed Order at the next regularly scheduled Open Meeting that is later than 10 calendar days after
13 the issuance of the Proposed Order. For good cause. the Commission may extend the deadline for a
14 final Order."
15 R00 / Commission Decision - The ARAM POA provides that if a Formal Challenge is filed
16 that requires an evidentiary hearing or submission of written evidence. the Hearing Division or assigned
17 Administrative Law Judge will issue a Recommended Opinion and Order no later than 150 days after
18 the Filing Date. The Commission should then issue its Decision on the Annual update within 180 days
19 ofthe Filing Date.
20 Again. for the same reasons discussed above. we find that additional flexibility in issuing a final
21 Order is necessary and find that a sentence shall be added stating: "The Commission may consider the
22 Proposed Recommended Opinion and Order at the next regularly scheduled Open Meeting that is later
23 than 10 calendar days after the issuance of the Proposed Recommended Opinion and Order. For good
24 cause. the Commission may extend the deadline for a final Order."
25 We find it reasonable to add the following provision to the ARAM POA :
26 "Commission Discretion - In the review of the Annual Update. the Commission retains the
27 authority, subject to due process, to deny all or part of an Annual Update."
28
I
lol DECISION NO. 82134

DOCKET no. W-0I427A-25-0126. ET AL.
l 4. ARAM Administration Calendar
_ Base Rate Case ARAM Required Filing New Rates
2 Test Year Test Year Date Effective Date*
Initial Base Rate December 3 I . llll N/A llll
3 CaseTest Year 2024
ls ARAM December 3 I . November I,
4 Annual U I date 2027 May I, 2028 2028
2" ARAM December 3 I . November I,
5 May I. 2029
Annual U date Q___ 2028 2029
3' I ARAM December 3 I . November l,
6 May I, 2030
Annual U date 2029 2030
4' ARAM December 3 I . November I,
7 May 1, 203 I
Annual U o date 2030 203 I
5 ARAM December 3 I . M a | 2032 November I,
8
Annual U \ date 2031 y 2032
9 If a rate case is not filed within the first five years ofARAM Annual Updates,
Full Rate Case a rate case must be filed with a test year ended December 31, 2032, by June
10 30. 2033
* Includes additional time for hearing• and Recommended O inion and Order riot to final consideration .
I I Section IX. ARAM Filing Costs
12 This Section allows for actual ARAM filing costs to be recorded in its annual Operating
13 Expenses and included in the Annual Update filing.
14 We find that it is reasonable to disallow from the ARAM Protocols and Template any Operating
15 Expenses related to the preparation. submission. and proceedings of the Annual Update. The Company
16 is not required to request an FRP - it is a choice made solely by the Company. Liberty Litchfield's
17 customers already will be paying a Rate Case Expense Surcharge related to this general rate case. To
18 add more rate case expense each year on top of what they are already paying is an unreasonable burden
19 on ratepayers. If the Company wishes to present an Annual Update every year. these costs should be
20 borne by the shareholders.
21 Accordingly, we lind that any Operating Expenses related to the Annual Updates preparation
22 and the related proceedings shall be removed from the ARAM Protocols and Template.
23 Section X. Full Rate Case Requirements
24 This provision states that the Company may voluntarily file a rate case at any time within the
25 first five years of the ARAM calendar.
26
If a rate case is not filed within the first five years ofARAM adjustments, a rate case must
27 be filed no later than June30. 2033. with a testyear ended December 3 I . 2032. Thereafter,
the Company shall file a full rate case with no more than five years between test years.
28 unless the Commission determines an alternate schedule. Notwithstanding the
I 02 DECISION NO. 82134

DOCKET NO. W-(ll 427A-25-0126. ET AL.
requirements herein. the Commission may order the Company to file a rate case at any
I time.
2 FRPs are a new I process for the Commission. and it is important that the Commission retain
3 control of its obligation to ensure that rates are just and reasonable. Therefore, we believe it is
4 reasonable to add the following clarification: "The Company may voluntarily file a full rate case
5 application at any time. If the Company has an Annual Update pending at the time the general rate case
6 application is filed. the pending Annual Update shall be withdrawn."
7 E. Tariff Removals
8 Because we approve the ARAM as modified above. the tariffs and mechanisms the requested
9 in the Rate Applications identified as applicable only if the ARAM is rejected - the FCCRM. PTAM.
10 PPAM - do not take effect. and we deny those provisions as moot.
l l * * * * * * * * * * * *
12 Having considered the entire record herein and being fully advised in the premises, the Arizona
13 Corporation Commission ("Commission") finds. concludes, and orders that:
14 FINDINGS OF FACT
15 I. The Procedural History for this matter set forth in Section I of the Discussion portion of
16 this Decision is accurate, and we adopt it in its entirety as though set forth fully here.
17 2. The Background information set forth in Section II of the Discussion portion of this
18 Decision is accurate. and we adopt it in its entirety as though set forth fully here.
19 3. The Relevant Commission Decisions information set forth in Section Ill of the
20 Discussion portion of this Decision is accurate. and we adopt it in its entirety as though set forth fully
21 here.
22 4. The Rate Applications information set forth in Section IV of the Discussion portion of
23 this Decision is accurate, and we adopt it in its entirety as though set forth fully here.
24 5. The Rate Design information set forth in Section V of the Discussion portion of this
25 Decision is accurate, and we adopt it in its entirety as though set forth fully here.
26 6. The Pre-Settlement Proposed Revised Tariffs and New Tariffs information set forth in i
l
27 Section VI of the Discussion portion of this Decision is accurate. and we adopt it in its entirety as
i
28 though set forth fully here. i
ii
I 03 DECISION NO. 82134
i

DOCKET NO. W-0 I427A-25-0I26. ET AL.
I 7. The ARAM information set forth in Section VII of the Discussion portion of this
2 Decision is accurate. and we adopt it in its entirety as though set forth fully here.
3 8. The Financing Application information. as set forth in Section VIII of the Discussion
4 portion of this Decision. is accurate. and we adopt it in its entirety as though set forth fully here.
5 9. The Settlement Agreement information as set forth in Section IX of the Discussion
6 portion of this Decision is accurate, and we adopt it in its entirety as though set f`orth fully here.
7 IO. The Resolutions discussed in Section X of the Discussion portion were reached after
8 consideration of the entirety of the evidentiary record in this matter. as well as existing laws (the
9 Arizona Constitution, statutes. rules. and case law, as applicable). and are just and reasonable and in
10 the public interest. We incorporate the Resolutions as though set fOrth fully here.
I I I I. The terms and conditions of the Settlement Agreement. as modified herein. are
12 reasonable and in the public interest.
13 12. The rates. charges. and terms and conditions of service approved herein are just and
14 reasonable and in the public interest.
15 I 3. The ARAM and terms of the ARAM POA and Template, as modified herein. comply
16 with the Policy and are in the public interest.
17 CONCLUSIONS OF LAW
18 I. Liberty Litchfield is a public service corporation within the meaning of Article 15. § 2
19 of the Arizona Constitution and A.R.S. §§40-250, 40-25 I . 40-285. 40-301. and 40-302.
20 2. The Commission has jurisdiction over Liberty Litchfield and the subject matter of the
21 Rate Applications and the Financing Application.
22 3. Notice of the Rate Applications and Financing Application and Hearing was provided
23 as required by Arizona law.
24 4. Liberty Litchfield Water Divisions FVRB is $70.095,723 and the Wastewater
25 Divisionls FVRB is $136.446,258.
26 5. A Rate of Return of 7.58 percent on Liberty Litchfields FVRB results in just and
27 reasonable rates and a revenue requirement that is sufficient to maintain Liberty Litchfieldls financial
28 integrity, will enable Liberty Litchfield to attract capital under reasonable terms. and is commensurate
I04
Decision No. 82134

DOCKET NO. W-0 I427A-25-0126. ET AL.
I with returns that investors could earn by investing in other enterprises of comparable risk.
2 6. The terms and conditions of the Settlement Agreement as modified herein. are
3 reasonable and in the public interest.
4 7. The financing authorization granted herein is for a lawful purpose that is within the
5 powers of Liberly Litchfield. is compatible with the public interest. with sound financial practices. and
6 with proper performance by Liberty Litchfield of service as a public service corporation and will not
7 impair the Company's ability to perform that service.
8 8. The financing approved herein is for the purposes stated in the Financing Application
9 and is reasonably necessary for those purposes.
10 9. Approval of the proposed financing does not guarantee or imply any specific future
l l treatment of any capital additions for ratemaking or rate base purposes.
12 10. The rates. charges. and terms and conditions of service including the ARAM and
13 ARAM POA. as modified. and approved herein. resulting from the approval of the Settlement
14 Agreement are just and reasonable and in the public interest.
15 l I. The rates. charges. and terms and conditions of service resulting from the Commission's
16 resolution of the issues herein do not result in "discrimination in charges, service. or facilities ...
17 between persons or places for rendering a like and contemporaneous service" under Article 15, § 12 of
18 the Arizona Constitution.
19 12. The rates. charges. and terms and conditions of service resulting from the Commission's
20 resolution of the issues herein do not "make or grant any preference or advantage to any person or
21 subject any person to any prejudice or disadvantage" and do not "establish or maintain any
22 unreasonable difference as to rates. charges. service, facilities or in any other respect, either between
23 localities or between classes of service" under A.R.S. § 40-334.
24 ORDER
25 IT IS THEREFORE ORDERED that the Commission hereby approves the rates and charges
26 and terms of service as set forth in Exhibit D to this Decision. and those terms of the Settlement
27 Agreement attached to this Decision as Exhibit A that were not modified by this Decision.
28 IT IS FURTHER ORDERED that the Annual Revenue Adjustor Mechanism Plan of
105 DECISION NO. __82134-_

DOCKET NO. W-01427A-25-0126, ET AL.
I
I I Administration and the Annual Revenue Adjustor Mechanism Template. as modified herein, are
2 approved.
3 IT IS FURTHER ORDERED Liberty Utilities (Litchfield Park Water & Sewer) Corp. shall file
4 with Docket Control, as a compliance item in this Docket, within 30 days of the effective date of this
5 Decision. a final Annual Revenue Adjustment Mechanism Plan of Administration Annual Revenue
6 Adjustment Mechanism Template and consistent with the findings of this Decision.
7 IT IS FURTHER ORDERED that Liberty Utilities (Litchfield Park Water & Sewer) Corp. is
8 directed to file with the Commission, as compliance item in this docket. on or before August 3 l . 2026,
9 revised schedules of rates and charges consistent with the final rates and charges set forth in this
10 Decision.
l l IT IS FURTHER ORDERED that the rates and charges and conditions of service adopted in
12 this Decision shall be effective for service rendered on and after September I. 2026.
13 IT IS FURTHER ORDERED that Liberty Utilities (Litchfield Park Water & Sewer) Corp. is
14 authorized to recover a Rate Case Expense of up to $400.000, as verified by Staff, to be amortized over
15 three years through a Rate Case Expense Surcharge calculated using weighted customer counts by
16 meter size. consistent with the Settlement Schedules. The Rate Case Expense Surcharge calculation
17 schedule is attached to this Decision as Exhibit E.
18 IT IS FURTHER ORDERED THAT the monthly Rate Case Expense Surcharge shall terminate
19 automatically upon recovery of the earlier of three years from the effective date of the approved rates
20 or the full amount of the authorized Rate Case Expense. Liberty Utilities (Litchfield Park Water &
21 Sewer) Corp. shall notify the Commission when the Rate Case Expense Surcharge has been terminated,
22 as a compliance item in this Docket, within 10 days of the termination.
23 IT IS FURTHER ORDERED Liberty Utilities (Litchfield Park Water & Sewer) Corp. shall
24 notify its customers of the authorized rates and charges approved in this Decision. including the Rate
25 Case Expense Surcharge. and their effective date. by means of an insert in its next scheduled billing
26 and by posting a notice on its website. in a form acceptable to the Commission's Utilities Division. and
27 shall file a copy of the notice with Docket Control. as a compliance item in this docket. within 10 days
28 of the notice being sent to customers.
106 DECISION no.

DOCKET NO. W-01427A-25-0126. ETAL.
I IT IS FURTHER ORDERED Liberty Utilities (Litchfield Park Water & Sewer) Corp. shall
2 implement and comply with the terns of the Settlement Agreement as modified and adopted herein
3 and that any failure to comply with the Settlement Agreement as modified and adopted herein shall be
4 deemed a failure to comply Vl I ith this Decision.
5 IT IS FURTHER ORDERED Liberty Utilities (Litchfield Park Water & Sewer) Corp. shall use
6 the depreciation rates set forth in the Settlement Agreement on and after the effective date of this
7 Decision.
8 IT IS FURTHER ORDERED that Liberty Utilities (Litchfield Park Water & Sewer) Corp.s
9 Cross-Connection/Backllow Prevention Tariff is approved.
10 IT IS FURTHER ORDERED that Liberty Utilities (Litchfield Park Water & Sewer) Corp.'s
I I Emergency Water Augmentation Tariff and Plan of Administration are approved.
12 IT IS FURTHER ORDERED that Liberty Utilities (Litchfield Park Water & Sewer) Corp.s
13 Industrial Fire Service Tariffis approved on an interim basis until a future order by the Commission in
14 the C`ompany's next general rate case.
15 IT IS FURTHER ORDERED that Liberty Utilities (Liberty Litchfield Park Water & Sewer)
16 Corp. shall submit for review in its next rate case a Cost-of-Service Study related to the Industrial Fire
17 Service Tariff.
18 IT IS FURTHER ORDERED that Liberty Utilities (Litchfield Park Water & Sewer) Corp.s
19 Customer Assistance Tariff and Plan of Administration are approved.
20 IT IS FURTHER ORDERFD that through September I. 2036. Liberty Utilities (Litchfield Park
21 Water & Sewer) Corp.is authorized to obtain long-term debt for a term/s ono more than 10 years from
22 Liberty Utilities in an aggregate amount not to exceed $65 million, and at an interest rate that will be
23 calculated based on a I0-year US Treasury Bond plus a l50-basis point credit spread. or such other
24 like tenn credit spread based on the most recent Liberty Utilities private debt placement. Interest
25 Payments are to be made monthly.
26 IT IS FURTHER ORDERED that the financing authorized herein is expressly contingent on I
I
27 Liberty Utilities (Litchfield Park Water & Sewer) Corp.s use of the proceeds for the purposes set forth
28 in the Settlement Agreement and as discussed herein.
107 DECISION NO. 82134

DOCKET NO. W-01427A-25-0I 26. ET AL.
I IT IS FURTHER ORDERED that Liberty Litchfield Utilities (Litchfield Park Water & Sewer)
2 Corp. is authorized to engage in any transactions and to execute any documents necessary to effectuate
3 the financing authorizations granted herein.
4 IT IS FURTHER ORDERED that Liberty Litchfield Utilities (Litchfield Park Water & Sewer)
5 Corp.is authorized to pledge. mortgage. lien. or otherwise encumber its assets in the State of Arizona
6 pursuant to A.R.S. § 40-285 and A.A.C. Rl 8-l5-l04 in connection with the indebtedness authorized
7 herein.
8 ...
9 ...
10 ...
l I ...
12 ...
13 ...
14 ...
15 ...
16 ...
17 ...
18 ...
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20 ...
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22 ...
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28
108 l)ECISION NO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
I IT IS FURTHER ORDERED that Liberty Utilities (Litchfield Park Water& Sewer) Corp. shall
2 provide the actual loan documents to the Commissions Utilities Division within 30 days of closing.
3 and shall file with Docket Control. as a compliance item in this docket. within 30 days of closing, a
4 notice confining that the documents were provided to Staff and a certification by an authorized
5 Company representative that the terms of the financing fully comply with the authorizations granted
6 herein.
7 IT IS FlIRTI 1ER ORDERED that this Decision shall become effective immediately.
8 BY ORDER OF THE ARIZONA CORPORATION COMMISSION.
9
10
C YERS VICE Cl IAIR WALDEN
I I
/
12
13 CO I NER mA UEZ PETERSON CO ON THOMPSON COMMISSIONER LO EZ
14 fgttl c 01
Q\:.'..llll."' 9¢
'441 , 1. , g Q. ¢ IN WITNESS WHEREOF. I. DOUGLAS R. CLARK. Executive
15 v£.I -e Director of the Arizona Corporation Commission. have hereunto
: 'II ¢*= ~* . * L \ I set my hand and caused the official seal of the Commission to be
16 :I
as . I, \ . 8 u. affixed at the Capitol . in the City of Phoenix, this
17 *A :x93r.. I I . In . L e * day of 2026.
*n »,"£/U,' 8*
18 9 "86.»»o J " ... 4.-
J :Du » *
19 DOU LAS R. CLARK
EXECUTIVE DIRECTOR
20
21 DISSENT
22
23
DISSENT
BAM/(gb)
24
25
l
26 l i
i
l i
27 l
i
l
28
109 DECISION NO. 82134 l i
1

I SERVICE LIST FOR: LIBERTY LITCHFIELD UTILITIES (LITCHFIELD
PARK WATER & SEWER) CORP.
2
DOCKET NO.: W-0I 427A-25-0126. SW-0 I428A-25-0127, W-01427A-
3 25-0163, AND SW-01428A-25-0163
4
Timothy .l. Sabo
5
Flias J. Ancharski
OSBORN MALEDON. PA
6
2929 North Central Avenue. 20thFloor
Phoenix. AZ 85012
7
Attorneys fOr Liberty Litchlield Utilities (Litchfield Park Water & Sewer) Corp.
tsziho (I oinluwcoin
8
camcharski (I Oll1l(l\\.COIll
Consented to Service b Email
9
10 Stephen Emedi
LIBERTY LITCHFIELD UTILITIES (LITCHFIELD PARK WATER & SEWER) CORP.
14920 W. Camelback Road
I I
Litchfield Park. AZ 85340
12 Stcphen.l:mcdifu I,ibcrtvutilitics.com
Consented to Service b Email
13
Daniel W. Pozefsky, Chief Counsel
RESIDENTIAL UTILITY CONSUMER OFFICE
14
I I 10 West Washington. Suite 220
Phoenix, AZ 85007
15
dpoze1skvfci)zlzIuco.uov
16 proceduraIQl)azruco.uov
czwicki4azruco.2ov , r I
17 ShaFIOSCOOI(((aLlllC0.LIU\'
snareia'rlazruco.gov
Consented to Service by Email
18
19 Thomas Van Flein. General Counsel
Office of General Counsel
ARIZONA CORPORATION COMMISSION
20
1200 West Washington Street
21 Phoenix, AZ 85007
()CiL/u"azcc.uov
utildivserviccbvcmaiI/aa/c3 \
22
Consented to Service b Email
23
24
25
26
27
28
I 10 DECISION NO. 82134

Docusign Envelope ID: D41250706995-496BAAOD330D97D2AD1B
l)O(KEl NO. W-01427A-25-()l26. ET AL.
EXHIBIT A
Liberty Utilities (Litchfield Park Water & Sewer) Corp.
SETTLEMENT AGREEMENT
Docket Nos.
W-0 l427A-25-0126
SW-0 l 428A-25-0 l 27
W-0 l427A-25-0l63
SW-0]428A-25-0163
March 3, 2026
DECISION NO. 82134

Docusign EnvelopeID. D4125D706995496BMOD33009702AD1B
DOCKET NO. W-01427A-25-0126, ET AL.
SETTLEMENT AGREEMENT
The purpose of this Settlement Agreement ("Agrcemcnt") is to resolve and settle all issues
and claims in Docket Nos. W-014277-25-0126 (Liberty Litchfield Park water rate case),
SW-01428A-25-0127 (Liberty Litchfield Park wastewater rate case), W-01427A-25-0163
(Liberty Litchfield Park water financing), and SW-01428A-25-0163 (Liberty Litchfield
Park wastewater financing).
This Agreement is entered into by the following entities:
Liberty Utilities (Lichfield Park Water & Sewer) Corp. ("Liberty Litchfield Park"
or "Company")
Arizona Corporation Commission Utilities Division ("Staff")
These entities shall be referred to collectively as "Partics", and a single entity shall be
referred to individually as a "Party."
LIST OF ATTACHMENTS
Attachment A - Settlement Schedules
I. BACKGROUND
A. Liberty Litchfield Park filed general rate case applications for its water and
wastewater divisions with the Arizona Corporation Commission ("Commission") on June
30, 2025. Staff found each rate case application sufficient on July 30, 2025.
B. Liberty Litchfield Park filed a financing application for its water and
wastewater divisions with the Commission on August 6, 2025.
C. A procedural conference was held on August 7, 2025, at which the parties
agreed that consolidation of the rate cases and financing dockets was appropriate, and on
l
August 7, 2025, the Administrative Law Judge issued an order granting consolidation of
the rate cases and financing application (collectively the "Consolidated Dockets"). l
D. The Residential Utility Consumer Office ("RUCO") filed a motion to
intervene in the rate cases on August 6, 2025 and the Administrative Law Judge granted
RUCO intervention on August 7, 2025.
E. Staff and RUCO filed Direct Testimony on January 16 and 23, 2026.
DECISION NO. 82134_
2

Docusign Envelope ID; D4125070-6995-496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
I II. SETTLEMENT
1
A. The Company filed a Notice of Settlement Meeting on February 5, 2026.
The Company, Staff, and RUCO subsequently held settlement discussions on February 17,
2026.
B. The settlement discussions were open, transparent. and inclusive of all
Parties to these proceedings. A settlement was reached between Staff and the Company.
RUCO is not a party to the settlement.
C. This Settlement Agreement reflects the Parties' agreement and intent to settle
and compromise on all claims and issues in the Consolidated Dockets, including, but not
limited to, the determination of an adjusted Fair Value Rate Base, establishment of a
revenue requirement, resolution of disputed issues over corporate cost allocations and
methodologies, the setting of rates for water and wastewater utility service by the
Company, and approval of the requested financing.
I). Certain affiliates of the Company, Staff, and other parties entered into a
Settlement Agreement on February 21, 2025 ("Prior Settlement") in Docket Nos. W-
02074A-23-0337, W-02465A-23-0338, W-02060A-23-0339, WS-02676A-23-0340, ws-
()2676A-24-0029, W-02074A-24-0030, W-02465A-24-()03l, AND W-02060A-24-0033,
which was approved by the Commission in Decision No. 81361 (June 18, 2025). The Prior
Settlement included a resolution conecming all disputes relating to capitalized overhead
rates for the Corporate and West Region shared service costs, capitalized overhead post-
test year plant additions, other capitalized overhead adjustments, and cost pool allocations
(the "Capitalized Overhead Provisions"). The Capitalized Overhead Provisions are
incorporated by reference into this Settlement Agreement and are fully binding against the
Company.
E. The terms and conditions of this Agreement arc just, reasonable, fair, and in
the public interest in that they, among other things, establish just and reasonable rates and
resolve the issues arising from the Consolidated Dockets, and avoid unnecessary litigation
expense and delay.
F. The Parties request an order from the Commission, as soon as possible: (i)
finding that the terms and conditions of this Settlement Agreement arc just and reasonable,
(ii) concluding that the Agreement is in the public interest, (iii) approving the Agreement
in its entirety, and (iv) making any and all other findings and orders in support of this
Agreement that the Commission deems necessary.
Ill. RATEMAKll\G t TERMS
A. Revenue Re uircment. The Parties agree toa total revenue requirement for
water of $21,468,602 for the Company, which results in an increase in revenues of
3 DECISION NO. 82134

Docusign Envelope ID. D4125D706995495BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
$5.316,59I over test year revenues, an increase of 32.92 percent. The Parties agree to a
total revenue requirement of $3 1,585.039 for wastewater, which results in an increase in
revenues of $ 10,015,953 over test year revenues, an increase 0f46.44 percent. The Parties
also agree to the expenses for Depreciation Expense, Contractual Services - Management
Fees, Contractual Services - Water Testing and Property Taxes listed on Settlement
Schedule Cl, Page I.
B. Fair Value Rate Base. The Parties agree to a Fair Value Rate Base
("FVRB") of $70.007,480 for water as shown on Settlement Schedule A-l for the
Company. The Parties agree to FVRB of Sl36,328,067 for wastewater as shown on
Settlement Schedule A-l. The Parties agree to use the original cost rate base as FVRB in
this rate case. The Parties determined the proposed FVRBs in this rate case by agreeing to
the following items in order to resolve issues in dispute:
l. Post Test Ycar Plant. All in service, used and useful post-test year
plant set forth in the Direct Testimony of Commission Staff for rate base treatment has
been included in rate base.
2. AFUDC adustment. The Parties agree to include Allowance for
Funds Utilized During Construction ("AFUDC") in rate base, as proposed by the
Company, with the exception of an adjustment of $(83,463) for water and S(6 1,606) for
wastewater.
3. Sarival Depreciation Deferral. The Parties agree to the inclusion in
rate base of the Sarival Depreciation Dcfcrral in the amount of $5,204,3 10 for wastewater,
as recommended in the Direct Testimonies of both the Company and Commission Staff.
4. Other adjustments. The Cash Working Capital, Plant
Reclassifications, Plant Addition Removals, Corporate Plant adjustment, ClAC
Adjustment, AIAC Adjustment, all as proposed by the Commission Staff, with a slight
adjustment to Cash Working Capital, as shown in the Settlement Schedule B-2, arc agreed l
to by the Parties. l
5. Ca italized ()verhead. The Parties agree to the Capitalized
Overhead provisions set forth in the Prior Settlement. The Parties further expressly
acknowledge and agree that a capitalization rate for corporate shared services costs of l4%
and a capitalization rate of 2 l% for West region shared services costs by Liberty is
appropriate and acceptable for Liberty' s corporate allocations and shared services costs for
Liberty's current shared services provided to Arizona. The Parties recognize that the
establishment of capitalization rates as set forth herein does not bind the Commission in
future rate cases, however, it is the intention of the Parties that the foregoing rates are
appropriate to be utilized and shall be utilized on a going forward basis until further order
of the Commission.
4 DECISION NO. 821'44

Docusign Envelope ID; D4125070-6995496B-AAOD330D97DZAD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
6. Cor orate Costs. The Parties further agree to the following
adjustments for the corporate shared services costs allocated to Liberty' s regulated utilities
in Arizona:
I are I ervnces ..: . . .," . u justment I o
Bonus 50%
Long-Term Incentlvc Plan 50%
Boar \ O Directors Fees 5 0 | 4
Directors and Officers Insurance 50%
Meals & Entcrtainmcnt 50%
Trave 50%
Dues & Memberships 50%
Supplemental ExecutiveRetirement Plan I 00%
Charita je ontrr utlons l 00%
Housing/Car Allowance 100%
'i s Awar s 100%
Employee Immigration Costs I00%
Emp oyee Relocation osts 100%
7. Operating Expenses. The Parties agree to adjusted test year total
operating expenses, as shown in Settlement Schedule C-I page I.
8. Customer Assistance Tariff. The Company will adopt a Customer
Assistance Tariff ("CAT") providing a discount on water and wastewater bills. The CAT
shall include low-income customers, Deployed Military, and Disabled Military.
Customers only quality for one discount. The Parties agree that a customer shall be eligible
for the low-income component of the Customer Assistance Tariff if their income is at or
below 200% of the Federal Poverty Level. Customer eligibility fOr Deployed Military and
Disabled Military is governed by the tariff and is not changed by this Settlement
Agreement. The Parties agree that the CAT shall not include a cap on the number of
eligible and/or participating customers.
9. Rate Case Ex erse. The Parties agree to rate case expense not to
exceed the lesser of either $400,000 or the actual rate case expense incurred (i.e., there is
a cap on the rate case expense to be recovered in the amount of $400,000). The foregoing
rate case expense shall be recoverable through a monthly surcharge assessed over three (3)
years. The surcharge shall self-terminate if the expenses are recovered in full before the
three-year recovery period ends. This provision is conditioned upon Commission adoption
of this Settlement Agreement' s material terms and contemplates the deadlines and hearings
! The Supplemental Executive Retirement Plan (SERP) benefits of periodic or lump sum
payment as presented in the benefit plan document from Algonquin Power & Utilities
Corp. Supplemental Executive Retirement . Plan, Effective January l, 2016. SERP
expenses are specific to APUC and are included in the APUC cost pool.
5 DECISION no. _82134-

Docusign EnvelopeID; D41250706995-496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126, ET AL.
set forth in the current Procedural Order. In the event that the Commission does not
approve the material tennis of this Settlement Agreement and/or there are additional
proceedings, filings and/or evidentiary hearings, other than the proposed Phasc II
proceeding, not contemplated by the current Procedural Orders, this provision regarding
rate case expense shall not be binding on any of the Parties and the Company shall be
entitled to seek recovery of such additional rate case expense. Rate case expenses
associated with the Phase II proceeding shall be addressed during the Phase II proceeding.
II c. Cost of Capital.
l. Ca ital Structure. The Parties agree t o a capital structure
consisting of 54 percent equity and 46 percent debt for the Company, which assumes
Commission approval of the Financing Application as discussed in section D below.
2. Cost of Debt. Thc Partics agree on a cost of debt of 5.54 percent for
the purpose of setting rates in this rate case. The Parties acknowledge that under the
financing approvals requested and agreed to herein, future debt offerings may be at
different costs of debt.
3. Cost of Equity. The Parties agree to a cost of equity equal to 9.75
percent for the Company, which was agreed to through negotiation and compromise.
4. Rate of Return. Using the capital structure and costs of debt and
equity agreed to herein, the Parties agree to a rate of return/weighted average cost of capital
of7.77 percent on the Company' s water and wastewater FVRB.
D. Financier A lication. The Parties agree that the terms and conditions of
the Company's proposed financing are reasonable, including the manner of determining
the cost of debt, and that the requested financings should be approved by the Commission,
except that the Parties agree that the term of the long-tenn debt financings shall be 10 years.
E. Tariffs. adjustment and surcharge mechanisms.
l. Phase II fur Formula Rates / CSRM. The Company's proposed
Formula Rate Plan, termed the Cost of Service Reconciliation Mechanism ("CSRM"), will
be addressed in a Phase II proceeding, and these Consolidated Dockets will be held open
for that purpose. The Phase II proceeding will not occur until after the Commission
establishes rates for the Company. The Phase II proceeding will be modeled after the Phase
II proceedings currently pending for EPCOR Water Arizona, Inc. and Arizona Water
Company (Northern Group). The Company will not be permitted to file its Phase It
proposal until March 31, 2027.
2. HUF. The proposed revisions to the Company's HUF will be
adopted .
DECISION NO. 82134
6

Docusign Envelope ID; D4125070-6995-496B-AAOD-33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
3. Pretreatment Tariff. The Company's pretreatment tariff will be
adopted, except that the tariff will be revised to include Staff s suggestion that PFOS be
reserved under the tariff.
4. Federal Compliance Cost Recoverv Mechanism. The Fcdcral
Compliance Cost Recovery Mechanism ("FCCRM") as proposed by the Company will be
adopted. If a formula rate is approved by the Commission in the Phase II proceeding, the
Company agrees that such a decision will render this mechanism moot.
5. Industrial Fire Services Tariff. The Industrial Fire Services Tariff
proposed by the Company will be adopted. The Company will submit a Cost of Service
Study for the tariff in its next rate case, as recommended by Staff.
6. Emergency Water Augmentation Tariff. The Emergency Water
Augmentation Tariff proposed by the Company will be adopted.
7. Miscellaneous Service Char es. The Misccllancous Service
Charges set forth in the Settlement Schedules will be adopted, including an after hours fee
of$l 25.00 and a Reconnection (Delinquent) fee ofS50.
IV. COMIWISSION EVALUATION I OF SETTLEMENT AGREEMENT.
I. The Parties agree to file testimony in the Consolidated Dockets supporting
this Scttlcmcnt Agreement. and to do all things reasonably necessary to proceed to a
hearing on the comprehensive settlement. The Parties agree that all currently filed
testimony and exhibits may be offered for admission into the Commission's record as
evidence, in addition to the Parties offering this Settlement Agreement, the Settlement
Schedules and testimony in support of the settlement into the evidentiary record.
2. The Parties recognize that Staff does not have the power to bind the
Commission, and that Staff acts in the same manner as any party to a Commission
proceeding. The Parties further acknowledge and agree that the determination of the
Company' S FVRB and the setting of just and reasonable rates thereon will be made by the
Commission based upon its own independent evaluation of this Agreement.
3. If the Commission issues an order adopting all material terms of this
Agreement, such action shall constitute Commission approval of the Agreement.
Thereafter the Parties shall abide by the terms as approved by the Commission.
4. If the Commission fails to issue an order adopting all of the material terns
of this Agreement, or modifies or adds material terms to this Agreement, any or all of the
Parties may withdraw from this Agreement, and such Party or Parties may pursue their
respective remedies at law without prejudice. For purposes of this Agreement, whether a
tenn is material shall be left to the reasonable discretion of the Party choosing to withdraw
from the Agreement. If a Party withdraws from the Agreement pursuant to this section arid
7 DECISION NO. 82134

Docusign EnvelopeID. D4125070-6995-496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
files an application for rehearing with the Commission, the other Parties, except for Staff,
shall support the application for rehearing by filing a document to that effect with the
Commission.
5. Thc Parties agree to support approval of the Agreement and resolution of the
Consolidated Dockets. The Parties shall make reasonable and good faith eflbrts necessary
to obtain a Commission order approving this Agreement. The Parties shall support and
defend this Agreement before the Commission. Subject to the provisions below, if the
Commission adopts an order approving all material terms of the Agreement, the Parties
will support and defend the Commission's order before any court or regulatory agency in
which it may be at issue.
V. MISCELLANEOUS PROVISIONS.
A. Each Party whose signature appears below is fully authorized and
empowered to execute this Settlement Agreement. Each Party has been represented by
competent legal counsel and understands all of the tennis of this Agreement, has had an
opportunity to participate in the drafting of this Agreement and fully review this Agreement
with its legal counsel before signing, and executes this Agreement with full knowledge of
the terms of the Agreement.
B. This Agreement represents the Parties' mutual desire to compromise and
settle in good faith all of the issues in the Consolidated Dockets in a manner consistent
with the public interest. To achieve consensus for settlement, the Parties arc accepting
positions that, in any other circumstances, they might be unwilling to accept, unless
otherwise stated iii this Agreement. They are doing so because the Agreement, as a whole,
with its various provisions for settling the unique issues presented by this case, is consistent
with their long-term interests and the broader public interest. The acceptance by any Party
of a specific element of this Agreement shall not be considered as precedent for acceptance
of that element in any other context, unless expressly stated herein. No Party is bound by
any position asserted in negotiations, except as expressly stated in this Agreement. No
Party shall offer evidence of conduct or statements made in the course of negotiating this
Agreement before this Commission. any other regulatory agency. or any court.
C. Each of the terms of this Agreement is in consideration of all other terms of
this Agreement. Accordingly, the terms arc not severable unless otherwise agreed by the
Parties.
l
D. The Parties shall make reasonable and good faith efforts necessary to support
and defend this Agreement and obtain a Commission order approving its material terms
and, if necessary. in court if challenged by another person or entity. Subject to provisions
set forth above, if the Commission adopts an order approving all material terms of the
Agreement, the Parties will support and defend the Commission's order before any court
or regulatory agency in which it may be at issue. Nothing in this section shall be construed
8 DECISION no. 82134___

Docusign EnvelopeID. D4125070-6995-496BAAOD33009702AD1B
DOCKET NO. W-01427A-25-0126. ET AL.
to require a Party to fund the defense of any other Party. The Parties expressly recognive.
however, that Staff shall not be required to file any document or take any position that is
inconsistent with a Commission order in this matter.
F. This Agreement may be executed in any number of counterparts and by each
Party on separate counterparts. each of which when so executed and delivered shall be
deemed an original and all of which taken together shall constitute one and the same
instrument. This Agreement may also be executed electronically or by facsimile.
F. To the extent any provision of this Agreement is inconsistent with any
existing Commission order. rule, or regulation. this Agreement shall control.
ARIZOWA CORPORATION COMMISSION UTILITIES DIVISION
By: J2,a~- /*33»I>o
Printed Name: Briton Baxter
Title: Co-Director
Date: March 3, 2026
LIBF. J,lY"IIl,|1`ll*IS (l,ITcHm:l,o PARK WA run & SEWER) CORP.
By: llwses 'llwmysave
Printed Name: Moses Thompson l ll
l l
Title: president
Date: march 3, 2026
9 DECISION NO. _ 8 2 1 3 4

Docusign Envelope ID; D4125D706995496B 0D33009702AD1 B
DOCl<ET NO. W-0 I427A-25-0126. ET AL.
Water Settlement Schedules
i
i
DECISION NO. _82134

D¢¢lll* E\\.hOl 0 ofusozoaa8s4veeAn;.oauuwonou8
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utllltics ILltch¢icld Park Water ex Sewer) Corp. Watt Dlvlsbn sxhnn
Tall Year Ended Decanunar 31, 2024 Soitlamew. Sd18dlM A-I
Camzaulation of Ins-se In Gloss Revenue Pigs 1
Haq..lmmems Ax Aalusuaa Witness: Bounssa
LIIB
NS.
1 Fa. Value Rats Base s 70muw
2
a Adnuatod Oneraling Income s 1,552,264
4
5 Cull Rule of Return 2.29%
6
1 Requiod Opavaung Income s 5440.990
a
9 Requlmd Rnrn al Rnlum on Far Value Rate Baan 7.77'/e
10
11 oporntng Income Dehcaency s 3,888,728
12
13 Gross Revenue Cofmarsfon Facto: 1.3672
14
15 Increase In Gm: Revenue
16 Hcqurcmcm s b.J16.b91
17
1B Adlnsted lost 'Isa Revenues s 16, 152.011
19 Incssase In Gross Revenue Requinmem s 5 316,591
20 PV0D°1od Rwomc Rnuuwnmnl s 21,488,602
71 KG Inn mm 32.92%
22
23 Cunomor Prison! Pvupo-d now P.n:.nt
24 Clnulfloatlun B u n . Mn. Ina un u m m
25 1/4 Inch R¢$i¢ClIl\BI s 4.390.954 s 0. 141 .889 s 1.750.935 39.88%
i s 1 Inrh Rnunema 4,263,940 5.930.411 1666,532 39 Oss:
27 1.5 Inch Reslduntml 51,972 73.352 21,380 41 14%
28 I Inch HaslaennaI 2.813 3.8;s0 1 .017 36 16%
29 s wa m s 8.709.579 s 12,149.59 s 3.439.863 39.49%
30
31 314 Inch Commerdal s 15,102 s 21.044 s 5,942 39.35%
32 1 Inch Commercial 39.324 55.146 15.822 40.23%
33 15 Inch Cnmnwdal 159,048 222,051 63,009 39 61 %
34 2 IMh CWllmutial 1.230.956 100.593 4as.ea1 38.15%
as s Ind! Commercial 27,048 38.217 11,171 41 .we
as 4 lld\ Cumnnldal 459,328 so 1 ,684 182,357 55.35%
87 G Inch Ccmmocial ua899 208.724 55.025 37.00%
an a Ill f Cnmmfldal 13.341 17.914 4,a:43 34.73%
:se 10 lmh Commercial 35,131 4e.sos 12.375 34,2591
40 SQMDIN s 2.128.975 s 2,998,940 s 790.9115 37.58%
41
A2 1'4 Inch lmgalion s 90,256 s 125156 s 34,900 aa.s71s
43 1 Imh Iii '°" i n 499,306 ssoasa 191,687 38 :ma l
44 1.6 Inch lmgullon 783.937 1.os1.oa;l 297,148 37.90%
45 2 Inch lrylgM\t.\ 2,288,550 3,147,330 858,780 37.539
46 4 lush lrrqaiiuu 249.512 assess 90.143 36.1352 I
47 8 Inch lmg o m as.n2o 96.139 31 ,119 36 see: l
48 Smxndll s 3.998.561 s s,soo.ase s 1,503,775 37.63%
49
50 1 lmh Mullynvnly s 7,075 s 2.as1 s 641 31 65%
51 L5 Inch Mum1amly 72,545 1oo.azs 2a.28u as 98%
52 s u m Mull18mly 571,767 795.109 223.342 39.06%
so 3 Inch Multifaunly 119,811 184.995 45,184 37.71%
54 4 Inch MuM1mnly 43,578 G 1.391 17,813 40.88%
56 G Inch Mull]18nlly 27,612 39.001 11.389 41.24%
56 smwana s 837,339 s 1.183.988 el 328.649 39.0\%
57
se 5.'8x3i4 inch Flw s 25.813 s 34.120 s 8.307 32.18%
59 :pa Inch Fire 22.440 29.611 7.201 32.09%
no 1 nm Ph! :we 499 121 31 88%
61 2 Inch Fire 1,704 1.sas 38? 31 . 74%
62 Hydwfll 92,613 162558 me ss 75.5394
63 Sslrlalal s 142,448 s 228.414 ii 85.965 60.35%
64
es 8 Inch Law AFB (we) s 113.943 s 148.209 s 34,287 aoms.
66 G um VUI co() 4,063 5,352 1.290 a1,14n
87
08
as Rovsnus Annualzallon 31.517 44,424 12.901 4095%
70 SUITDOIII s 5.964.545 s 22.169225 s 6.204.680 3a 87%
71
72 Mic Olhei waugh RIVUIIIG s 184.885 s 184,885 s 0 (X]%
73 Rncnnclng Afnnunt 2,581 929 (1.657) 64.01%
74 Rounding
75 Tool of Wlhf R.v.mn. Et 16.15 010 ii 22 sss.ou9 :I 8.203 028 38.40%
76
77 affnsnuassuamasa
re B1
79 C I
H0 C3
B1 H1 82134
DECISION NO.

Coa.slgn Envelope ID: D4 t 250738995496BAAOD330D97D2AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water 8. Sewer) Corp. - Water Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedute B-1
Summary of Rate Base Page 1
Witness: Bourassa
Llne Orlglnal Cost Falr Value
Rate base Rate Base
1
2 Gross Utility Plant in Service S 177,307,724 s 177,307,724
a Less: Aocumufated Depreciation 58,680,890 58,680,890
4
5 Net UI My Plant in Service s 118,626,834 s 118,626,834
6
7 Less:
8 Advances in Nd of Construction 5,646,954 5,646,964
9
10 Contributions in Aid of Construction 50,096,804 50.096,804
11
12 Acwmulated Amortization of CIAC (9.507,740) (9.$07.740)
13
14 Customer Meter Deposits 252,360 252,360
15 Customer Security Deposits 280,339 280,339
16 Anmllmilale(l Deferrferl Income Tax 404,517 464,517
17 Acaamulated Deferred Income Tax Credit 80,748 80,748
18 Excess Accumulated Deferred Income Taxes (EADIT) 1 ,505,147 1,505,147
19
20 Plus
21
22 Deferred Requlatmy Assets TCE Plume
23 Prepayments 273.548 273.548
24 Materials and Supplies
25 Working capital (133,763) (133,763)
26
27 Total Rate Base S 70.007,480 s 70,007,480
28
29
31
31
3?
33
34
35
36
37
38
39
40
41
42 SUPPORTING SCHEDULES:
43 B2
44 B3
45 B 5
46 E1
47
48
49
50
51
DECISION NO. 82134

Docubn E'vc"opc ID: D4*25D7D84181649GBAA® 33009782140lB
DOCKET NO. W-01427A-25-0126. ET AL.
Libcrly Utilllios (Litchfield Park Water a Sewer) Corp. Water Division Exnion
1861 Year Ended December 31. 2024 Selvemenl Revised Schedule B 2
Original Cost Rate Base Proforma Ad J ustments page 1
Wltnmst Bourassa
A¢justed Rebuttal
at end at end
Lana nl Settlement m
nu; I§§Il£§I Admlmgni Y r
1 Gross Utlllty
2 Plant in Scrvim s 175 471,361 1,836,364 s 177,307,724
3
4 Less
5 Ascumululed
s Dapfeclalion 57.92-1,762 756,128 58,680,890
7
a
g Net Utilty plant
10 in SGNICG s 117,546,598 s 118,626,834
11
12 Less
13 Advances in A56 ct
14 Construction 6.827.331 (1.180.367) 5.646.964
15
16 Corrtributions in Ald of
17 Construction - Gross 47.98.391 2,918,413 s0.096.804
18
19 Acnumulnlrrd Antrwtimtiun of CIAC l9,4?8,?95) (81,445) (9,507,740)
20
21 Customer Meter Deposes 252.360 252.360
22 Customer Security Deposits 280,339 280,339
2a Accumulated Dele rad Income Tax 1,205,972 (801,454) 404,617
24 Aecumutaled Deferred Income Tax Credit 80.748 80.748
25 Excess Accumulaled Deferred Income Taxer (EADIT) 1 505,147 1.505.147
26
27 Plus:
28
29 Defense Rcgulaloty Assets TCE P4umo
30 Prepayments 273.548 273.548
31 Materials and Supplies
32 Working CaDlt8l (150,450) 16.687 (133,763)
33
34
35 Total 89 785,704 _ s 70,007,480
36
37
38
39
40
41
42
43
44
45
46 8EBMHMQ3&EMLEE BEM&3MEM&i
47 B2. page 2 81 .
48 F1
49
50
51
DECISION NO. 82134

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5
g

Dot\.l ;n Erw ulouo D: D412537'J$9549€B**\DOJSODWCAAD1 B
DOCKET NO. W-0 I427A-25-0126. ET AL.
Liberty Ulllltles ILIRCMIUII! Park Waif G Sewer) Corp. Water Dlvlalon Elhibll
Test Year Ended Deaemuef 31, 2024 Setflament Sdmedala B2
Oiginal Cast Ram Bose Prafomn Adjuaimenta Page 3.1
Aawstmenn Number 1 A Witness Bowassa
one
129.
1 sznmnnasnnmn
2 m 121 (3) [41 = 111x[2]x[3] Direct
3 Uberly Seltlanenl Aloailed Alocaled
4 ma. Original Ulii\ies Original Origlnal SB\II8M8\\i
5 9 3 8 8 9 9 . Cos! Factor Factor G M Aniusunan
s w s Lana and Land R»gms s 1.364.098 6.656716 20.791999 s 10,878 18.818 s
7 904 Structures and Irnprowsmants 11,657,420 s 6567% 20.19t9% s 159,960 159.960
a
g
10
11
12 LU SubCorp. Plan (8020)
13
14 sum Lana and Land Rsghls s 68,167 51,3956 z4.u2s1% s 7.182 7.182 s
1b 904 Structures and Improvements 6.320.249 51 89% 24.0287% s 780.366 780.366
18 940 Office Vumituvu and [quipnwnl 1,781,431 51 88% 24.028795 s 219,955 251.247 13\.293)
17 9404 Cmrputars ana Software 5.038,773 88 we. 24.U287% s 1,050.617 997,783 52,844
18 940.2 Custard First 28,227,726 867856 24.0267% s 5,885,609 5,897,151 (11,541 )
10 955 PnwerGwefaGon 5,710 51 39% 24.0257% s 705 705
20 995 Power Opefauaa Equipment 943,696 51.39% 24.0267°4 s 116,519 116,519
21 997 Msoelaneous Equipment
22
23 Totals
24
25 m s Land and Land Rights s 1 477,174 s 26,080 26,060 s
26 904 Strudusns and Improvements 17877,670 94c,326 940,326
27 940 Of hoe Fumltura and Equipment 1.781.431 219,955 251 ,247 (31293)
28 940.1 Oompuwrs anc Software 5.038.773 1.050.607 997.763 9.844
29 940.2 Cuslomef First 28.227,725 5,885,809 5.897.151 111,541)
ao 955 Pow\r Genuahon 5,710 705 706
at 995 Fowler Opefatsd Equipment 943,896 118,519 116.519
az 997 Mlscalnnucus Eqwpmenl
33 s 55.297,180 s a 239,781 s 8,229,771 10,010
34
35
38
37
38
39
40
41
42
43 l
44
45
48 §!BEQBDH§JZ3BI8&£ BE§AE§§UEDQU3E
47 Work napsrs B2 M9 8 3
4B
l
DECISION NO. _ _ 82134 _ _

Do¢.ll§n ENvckzpo ID: ouas:>1oms-.9eaAaocxw:>9fo2/~:>1n
DOCKETNO. W-01427A-25-0126. ETAL.
Llbeny Ulllltlcs (Utchfleld Park Wait! 1 Sewer) Corp. Water DMslon Emrhibh
Tas YNr Ended Dwsmber 31 2024 sememem Sdwdqle B2
Onginnl Cox Rule Ease Prnfnmm Afljuxtmnts Page 3.2
AdlustmentNumber 1 B Witness; Bourassa
Une
14
1 EmuJyuzynumns
2 Adjusted
3 Tosl Year
4 Acct. Orig na Seitlemem Sevlemem
5 .NJL neamum $284 Aauamum SEMI
s 106 Cunslrumi¢x\ Cumpluurd Nut Clsssihsd s
7 301 Orgunmsliun Cost
a 302 Francaise cost
9 303 Lald :nd Lane Rights
10 304 Structures and lmprovemvils
11 3045 Collecting and Impnunrting Rex
17 306 Luca River Ami Other lmnkas
13 307 Wetis and Swings 6.757.e50 560,301 7,318,151
14 308 Inhnration GaIe1¢s and Tunnels
15 309 Supply Maln$
16 310 Power slenelatlon Equipment
17 318. 1 Solar Geneumnr
18 311 Ekectrc Pumping Equbzlment 307,500 147,732 455.232
19 320 Water Treatment Ecuipmem
20 ago. 1 Wav Treatment Plant
21 320.2 Chemical Solution Feeders 20,625 43,924 64.549
22 330 Dist. Resawcks a. Standpipe
23 330.1 Stomp tanks 224,051 224,051
24 330.2 Prsss.na Tanks
25 331 Trans. and Dust. Mal Mi 609.383 (609,363) (0)
26 333 Scrvic¢$ 110.000 3,469 113.469
21 334 metals 210.0w 91.465 301.165
28 335 Hyxiranbt 15,125 (1 5.125) (0)
29 338 Budslluw Prlsvunltun Davoss
30 339 Other Pkml and MISC Equip.
31 340 Office Furniture and Foautus
32 340.1 Computers and Software
33 341 Transponanfan Eqtlpmant
34 341 . 1 Trammnttation Equipment Golf Carla 22,952 22.952
35 342 Slam: Equipment
se :us Tools and Wak Ecuiament 16.500 (16,500) lm
37 344 Labualory Equipment
38 345 PowerOperatedEquipment
39 MG Cnmmmiralinns Erpnpwwnt
40 34 / Mtanalhnaous Eqwpmmt
41 347.1 Mtaeullamous Equ pmenl CNG
42 348 OtherTanglme Plant
43
44 Suhkztal s 8,046,963 s 457.907 s 8489 070
45
48 sea Land and Land RigNx s s
47 004 Structules and Imomvements s
48 ago Office Fumluure and Fuiules S
49 940. 1 Computersand Software s 236.285 s 218.447 454,712
50 940.2 CUUGWIOV First s
51 see Power Gu\emuon s
62 995 Power Owfiled Eqummenl s
53 997 Mcsculhncous Eqwpmom
54 Suhwlal s 236.265 s 218,447 s 454,712
55
ss Tolll s a.2aa,2a s 871,354 s 8,964,582
57
58
69 §!EEQBUN§§§HED!LE BE§6E§§0ED!U3i
t o Work papels B2. pa9e :a
61 Tuslvmany
i
i
l
DECISION NO. 82134

gvu b II l.!&.... unu MU lunueuns
DOCKET NO. W-0I 427A-25-0126, ET AL.
l.-n;u\l\ngnlurhuhnwnnsluunuup wnnuwuun Maui
r-e Y- ul lhund 31.1ln4 ! d l - t $ . l h l O 2
Oqhd CMR BLuFU - - i 'As as
~ l. nnnnnnr : *1r1s aauaau
Lu
anI
2I
I MU 114 Y M IT 4 " M IVA: rvaq 11.4 11rlu. Inn v- Illul sawn:
a :annul :nz an mr an am .no II :au nu ll 1- Vi to
I Beis cunuuucannarn uacufnne l s L s s s s a 8
x i ugrzNoCa
TI| an ll.lv-LJUM
ac: u a wu u rq y u (an, c o wma gnu nu :11: u m may: cannun
W x i l . l . l u n d h v\ u u . l a n 1U 11 am we: mun |=12.1u ¢i.ll» t\Mr'1] ¢\u.vm
1 so cnnanlngnnawpauung-.
H BC! nun-xnoaunr-an
1: I a m w w o (l1l..¢i} on .II up 1901 green gsunn wnw; (wanna urn un I nanny
ala 8 8 1 mum rd Im-
11. 15 SC? S1l'" ns.aw 115111 but Iurl! annum uasa0r can uuc p: Hamm
so re-anounr B'vw1 Mann :as II?) a151. an n u n ; umm
i i 8191 S e l t u s
18 an L&cvulnptg incull iI¢.9l. :1unln so III] 1 l0.flll mf and ¢.lI.r :AIll] unsung mum)
*I un w- mahnt.¢lp»un [ul 12ill) enum z um; : v i Blum
m s W s Ind-l !! I muses :faun» tll we) ii1.1721 "Ana a u x nance; 110.8%
z :buzz C-nluanor run- to M l ) :z jin an :lm :i no; s iN
n no 9¢..¢IwrlaS.r¢|o¢ no: is <11 U)
zu :mu b e * - n . 11W! . nr Z or: 11.-J
* :my Wntr fo.
as 881 Imp .!&.. ion 14 z.11c: uuun II is : 1\0.T80l Huns; ceca 10: :Susan met x4l cannuw
ln11 18 814.9 one: El.NP) 32 run 4lvl num some ac: 1: is :m unul)
so lA. nur, (H , l" sum 11U!b1 Fanni; 01.21611 no sn unurz)
an H44\ Up", gun :sum 11.441 n 1q want man or 4¢) (21.l*)
. I :us nu.\lul¢r¢au\ue.n 111. 1131) we
11 819 Um mu am mpg 1£883 :1 iiwi Tl9 I*"9.l *WUI no ma 1u .ml
JI 849 U l l f i i d f l t [4212 nm 111 8.28 32741) gain)
an and Ctnlliaaannm Ml; Ur I ll.uJ : or : i nn all: £1 :by awe
a 141 1u|»a1\1|u\:qu:n- surf; t*Nl: . it 327) aura
as ans UW LQL ¢ l
an au Mclllmuwll
as up 1u.» aYa\h.ulvl : 1*141 in nm : Il : rum Lu: l . l a un 12 is)
:1 an Llnvl"yl:l»1li
J! up lulOI-a: q. pmu1
* .up W U I M Q .1.rw9 nor II 1.b.ul> H: umm gosum subaru :num w. is
cu nr hnm»..9 Ur) £&2 una; :who :=°.In
MH ih~ulnu»E.Aml\080
01; Lil 0nr 1ql:»\su go; :a un 10)
.gII Ull.:.i I, I tulwzrl I ,luuuu 1 I I m 149 I 1111158 a I§.I 491) a fir au; I 8s.mam I al say:ih I b (43, 981
go4r
ssazm=¢n.u:
41 Wan non az papa
an
DECISION NO. 82134 _

Jasusim EMC o- ID: DO l2so1ca9us4scamoosaucerc2Ao1 B
DOCKET NO. W-0 1427A-25-0126. ET AL.
Liberty Utilities (Litchfield Plrk Water 8- Sewer) Corp. Water Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B2
Orginal (Inst Rate Base Proforma Adjustvnenus Page 3.4
Aqustmcnl Number 1 D Witness: Bournssa
Line
M
1 WIPT f .
2 Adju$1ed
3 Test Year SefUement
4 Acct. Oflginal S8M8f11Hf\l Original
5 40. Description Adiuslmcnis Cost
6 106 Construction Completed - No! Classlf ed s
7 301 Organization Cost
8 302 Franchise Cos'
9 303 Land and Land Rights
10 304 Structures and Improvements
11 305 Collecting and tmpoundtng Ros.
12 306 Lake Rtvsr and Dther Intakes
13 307 Wells and Sponge. 1.1o2732 1,102,732
14 308 Inllltruliun Galleries and Tunnels
15 309 Supply Mains 6.298 6.298
1G 310 Power Generation Equipment
17 310 1 Solar Generator
18 311 E!ed'ic Pumping Equipmenl 1.665.893 1.666.893
19 320 Water Treatment Equipment
20 320 . 1 Water Treatment Plant 748,503 74 B.5D3
21 3202 Chemroal Solution Feeders
22 330 Dist. Reservoirs 8 Standpipe 1.052.044 1.052.044
23 330.1 Storage tanks
24 aao.2 Preosuro Tanks
25 331 Trans. and Dust Mains 174,133 174 133
76 333 Services 657,025 857 025
27 334 Meters 1.59a9m 1.595.900
28 335 Hydrants 322.693 a2z69a
29 336 Bad<t1ow Prevention Devices
30 339 Other Plant and Misc Equip
31 340 Oftlcc Furnlture and Fixtures 28.488 28 488
32 340 . 1 Computers and Software
33 341 Transportation Equipment 72,354 72.354
34 341 1 lmnsportatlon lzqutpment GON Cuts
35 342 Stores Equiptvn,nl
36 343 Tools and Work Equipment
37 344 Laboratory Ec uiament
38 345 Power Operated Equipment
39 345 Cvmmumculions Equipment
40 347 M.sceIIar\eous Equipment
41 347 . 1 M scallaneous Equipment CNG
4? 348 Othu Tangible Plant
43
44 Subtotal s 7.42a,064 s s 7,428,064
45
48 903 Land and Land Rlgh1S s s
4/ 904 Slfudunes aW Improvements s
48 940 Ofilce Furniture and Flxtures s
49 940 1 Compuisrs and Software s
50 9402 Customer First S
51 955 Power Gcnoralmn s
52 995 Power Operated Equipment s
53 Subtctai s s s
54
55 Total s 7,428,064 s 1. I 7,428,064
56
57
58 SL!El3QBIlN§.§§HEDL!L£ BEQAE§QHEEHLEi
59 Work papers B2. page 3
60 Testimony
DECISION no. 82134

Do:w g\ E*w 1€lOl n D42501041884918AALJ0\LS0UW3¢AD1H
DOCKET NO. W-01427A-25-0l26, ET AL.
Lboaiy Utlllllcs (\Ju:h1iald Park Water A Sewer) Comp. Witor Division ElLh1bit
Tnsl Year Emilia Dacamher 31 2024 Selllemtinl Schedule B2
Orlghal Cost Rate Base Prolormu AdiusVnents Page a s
Aqusunam Nuwaer 1 1: Witness: Banana
Lhe
up.
1 Af!411itnsR as al W . umm 1
2 M w h d
3 Test Year
4 A w , Ongnol 2091 2022 2023 2024 Sdilomad
s M . Dnm nm a n m e f m m s m eanums n. a n u m m t e n m n m n ésiuilunnl
6 108 Comlluotnl Cclnglalsd - No Chlasifnd s
7 301 Organization Cost
8 30? Franchise co
9 303 Lund .M Lilr\d R4\\l
10 304 Slruaures am lmnrnvnmects
1'. sos Colleang and lrnpoundlng Res.
12 308 Luke River and Other Iniuku
1a am Was and 5,vhgq
14 308 lnilualiun Galsvws and Tuvruis
15 309 SLIM means
18 310 Puww Generation Euukuranl
17 310.1 Sola Gcnamor
1a 311 Elsclvic Pwngmg Eq\.xmali
19 329 Wahl Truunlnl Lquomcnt
70 370.1 Water Tmtnmenl Plan!
21 320.2 Chomlcnl Sclubon Fudcrl
22 333 Div. Racnrvnh s Stanckipe
23 330 1 Storage Isth
24 330.2 Prcssuu Tasks
25 $31 Tram. aM Dal Main: 565,743.67 427,994.00 787,689.06 1a,<a58 34 1.355.30n
2s 333 s e m e n
27 334 Motors
28 335 Hyfiranua
29 she Bu1.*fbw Pveventiun Devices
30 339 01l10r pan and Mac. Equip.
31 348 O1Hue Fumiluro and FIx1urnQ
32 340. 1 Computers and Software
33 341 Tmrupnlrtnlkrn Equlpmnnt
:so :so 1 .1 Trarspcnallon Equipment Gal cans
35 342 Slopes Equipmam
36 343 Tuub and Work Eqdpmonl
37 344 Laucfaluy Equlpmerl
38 345 Power Operated Equipment
39 346 Communication Equinmmt
40 347 m 1=r:nllnnn<w. Ewvvmf*
41 347, 1 Miscellaneous Etnxrwvi CNG
az 348 Other Tlnglb\. Fawn
43
44 Sublnlm s s 585,744 s 422,995 s 287,889 s 78.958 s 1.355.380
45
46 903 to and Land Rims s s
47 904 Slrnctules ma Improvements s
48 940 Off co Furniuro and Fvxluws s
as 940. 1 Computers and Saltwaro s
50 940.2 Cuslnrner Fist s
51 955 Powgf GlY.Y.1IOf1 s
57 995 Pnwnr oporaiod Fqulprv..»1 s
so 997 Miaudkamscan Euwvvnwl s
64 Sunlnw s s s
$5
so Total s s 565.744 s .1.355.388
5T
sa
m smaxamasammas assaassuamass
so Wvfk vuvew B2. owe 3
61 Teahmony
DECISION NO. 82134

CLM\ s l*4llD on ll3?04001ll! M008808158815
DOCKET NO. W-01427A-25-0126, ET AL.
Lheny mlmn (LKzMleld Put Weer I Sever) Culp. W.te1 Dmslon aw:
nu Year Efldod Decibel 31 2024 Sclamam Sdueiuie oz
Oltghal Cost ills Bass FhUcrvrn Mjmmunu pug: 3 0
Aquxmnx Nlmbcl 1 r M M Hermann
Lll
ND.1
z Mnsloc
3 Tau Yan:
4 Ana onguul 2011 :ma :mo m21 : o n : o f Salilan-u
5 un. mmnnm c m mamma annum enunmsm www enmnm enmm nsnaaumni
¢ we Couulrvchun Cumpldld Not Chuilud 8
7 am Orgawnlm Call I
B 302 Funding Con s
a sos mu .nu lllld Hum s
10 ao4 So»wn\»u and lmpfweanonn s
11 306 Culnnhg Una lnpuunalrag Mn. s
12 sos Lis Rvur did Glue: Inch\ s
13 301 was Ana spring s
14 $00 hMrdorl Qllouss Una lump s
15 $00 sway Mliu s
16 310 Fbuvl GulWliicn Equbmad s
17 aw 1 Solar Gomviiul s
18 a11 Huctnc PurringEwwwl 5
19 ago Wl\.r Tmulv\lEudnw»¢n\ (5w35) J2Y,09l (10443) 4280.987) <1.407.ss2» (857.415) a.a14.054) s <s.sv4.ooo»o1
2 0 m 1 Wma Twxmm Plan 213.644 10,443 101,422 1.467.057 a q u a 2.374.054 s h, 114.61075
21 azoz Ouldell8alllon F-604 158.964 s uaoss 12
Z2 :to Du. R.s.rvu n A &llawo (1.052.014) s (1 oa2.w 141
211 man Slawgcunh. s
24 aan.: Pressure in s
25 381 7 IM. md Dun Mal: l.057,D44.)l s 1.052,0(4.\4
pa a ss Survwu s
21 $34 Melarb s
28 335 Hydllrn s
29 316 Badlfluh Wwunhan Devlen s
so 339 Qher pun 114 Muc £q¢. 18237 24,111 zuaa s 70,90116
31 340 Uma Fuvrlhn and hxuln (12,050) (28.488) s l w. w, & l
22 al a 1 Cunptbf: and Sc"-rw (a,188) 124.111) x (303891)
93 341 Tuuuuudilan Eqnpn-nl s .
51 i t 1 Twnapodatlan hgnpmenl Golf (he. s .
36 342 9 Flppmonl s .
so 343 Tosh and Wort iswnwvn s .
at 344 ubomiovy EndpmoM s
so 345 Power Omrlsa EqubmuM s
so a l a Ccmmnncdlwu EqdpmcM s
40 341 Mmadnnaonn Eq linmunl s
41 347 1 WaaulIunaum Eammni one s
42 348 OMer Tnnqhb Flow: *
43
44 Slbblnl go s so so o S 5 4 0 :s o
45
46 908 l.l1d .no Una mm s s
41 901 svuuuu :rd lmamvumm s
48 940 dim Fulnuvc nm Fudmm s
49 840.1 Convimn .iN saNer: s
so 840 2 Onnnlv FM s
so a sk FUn' Glltniull s
so a ss Puv-4 Ovarian EqublmM s
63 091 Uuoulhuaus iulvmm x
so Suniuul s go ii
55
GB n u 9 I 5 6
67
as
H 8&EMMMQ8§£8&£ 8QAPM1iEL!l.E§.
so Wodcaspul s2. page 3
01 Tnlmony
DECISION NO. 82134

Duumlr Enuen» o o4z::m4ssa4'.usmau azuosrmnms
DOCKET NO. W-01427A-25-0126. ET AL.
usury uunun (Lld\mld Pm( Waler a 50*lf) C0l9 Water Mwolm EXYIUI1
l u n YQ! hnael Dacembof Al, 2924 Sowornont SalaaM B2
Ohm! Cost Rma Bam Pin">ma Adiuslmts Page 37
A:i.mmunl N..vi14f 1 G WNnsss: Buulaxsa
I.h9
M .
1 P\.1mRrmaml
2 Am u s e
a was: Year
4 n o Ongnal 2020 M WWI M ean 2023 2024 Sonnumufu
s M newmm 4 M Aqmlrnenl A¢pum lm CO
6 1os Ccnstluulkr Cnrnulalul nu Mnsllsd s .
7 301 Ovumhiion C98l s .
a 902 Fnnchis Cui! s .
9 son Lana and Land M991 s .
10 so: Struclufa .no Imufuverrnnw
ss
11 306 Whdhg me Impounding Rn.
12 $00 Loc: Rlvor and Own Imakos S .
15 :uw Wa s n M SON * s ,
14 300 Inllhallcn Oalsuus and Tumek s .
15 aus 5u9oly Muir. s .
1G 310 PownvGenunuon Euucment s .
17 3101 Snlnr GnnnfXnr s ,
18 311 Eledrk. Pumpi\g Equwnvll (9495) s (9395)
1g 320 Wan' rruuvwn Equqannnf (names ) s (88.006)
20 320.1 Wawr Treatment Poem 88,006 s 88,006
91 3W.7 Qmminza Sdlmm Fnadnfi S .
n can l Wn n m n s l S\alndllipo s .
za 330.1 Spongelnnna s .
24 moz Pressure T8*$ s .
25 331 Trans unc on Mans s .
25 333 Servkac s .
2 1 334 Metro (ming s <w.e=0)
za 336 HYGfBn!S s
29 336 s»a<1¢w Pronmion Uervus s
an 339 Omar PUnt and Mac Fqub, s
31 340 Of kl Fuuuluv. and Fhhlls s
32 340.1 Compute Ana SoNwvc s
33 34\ TrlnlpotalIora Eqwmmx s
34 341 1 Transportation Eqwpmom . Golf Cans s
35 342 Skxua Equ6llmum s
as ala Took md WoN: Equpmml s
37 344 L l b a l n wy e t- m m s
as 345 Fovmf Opsraxoa Fqupmam s
Q 340 Ccmmncalbns Equamuli s
40 an Mnnalalmnus Erplpmonl [76.7UO) s 95,799)
41 so 1 Mhahnoul Bplpnml own s
42 us Om ar hivbh Plant s
43u
SuMoid s s (Anna) s s s s (no :1 Q ) s (116,924)
45
40 we l.»n¢ IM Luau We s s
47 904 Slruciuvu IM 1 mvwvomanu
ss
AA Nan Ofikn Fnnvlurs and Finns
49 940. 1 Cnmpuiun and SMlwaw s
so 9402 Custonnr run s
51 956 p o w S u m m o n s
52 995 Pmmr Ooeratsd Equipmcrn s
53 997 Mbculumeuu. Eqailnonl s
54 Subloll s s s
56
M mu s s Nam) s n 16,n4)
$7
58
59 sleaQnmQ§§u:nu»: sss;¢s§9nmn.:§;
so won noon B2.nlq¢3
61 T1-wow
82134
Dl."(`ISlON NO.

Dneuwqan Fwwhpnl ID run 1>r.rm:maf»4QmAmlwzr1rnvnvuas5
DOCKET NO, W-01427A-25-0126. ET AL.
Uborty Utlllllss [Litchfield P.rk Water & Snwor) Corp. Wltor Dlvlslon Exhlbh
lust You fmiami llacnmlx4l 31 ?074 Selllevnwll Sduaduns B9
Oneal Con Rats Bass Proforma Aquslments page 3 s
Adlustmem Number 1 H Wlinessz Bourassa
Lino
N O
1 INDQl:LBI£H&i
2 Ad;uslod
3 Tull Your
a Acct, Uligirull 2021 2022 2023 2024 Snnlum s nl
5 L44 Qm m s »_<n s o a n a n u m m a a u a s m m a n u n x m a a u m s m 9 9 1
s 105 Construction Completed . Not Ctasslhoc s
7 301 Organim tim Cos t s
a 302 Frandmse Cost s
9 303 Land and Lund Rights: s
1 0 304 Struclunos and lmpfovemems s
1 1 305 co'lecung aW lm;>our1d fig Res. s
1 2 306 Lake River and Olhev Intakes s
1 3 307 Walla and Springs s
14 308 lrrhltralion Callaruas and Tunnels s
1 5 309 Supply Mains s
1 6 310 Power Generation Equipm ent s
1 7 310.1 Solar Generator s
1 8 311 Electric Pumping Equipment s
1 9 320 Wren Trnaunant Equipm unl 8 0 2 . 6 M 23,420 5 4 , 0 9 1 s 80,275
2 0 320.1 Winer Treatm ent Plant a w ) (2,684) (23,420) 164.0911 s (80,775)
2 1 320.2 Chernlcal Solution Feeders s
2 2 330 Dls t. Res ervoirs & Standplpc s
2 3 330.1 Storage tanks s
2 4 330.2 Pm s s ura Tanks s
2 5 331 7 runs . and Dis t Mam a s
2 8 333 Services s
2 7 334 Mnlartc s
2 8 385 Hydrants s
2 9 335 Backflow Prevention Devices s
3 0 339 Other Plan: and Mis c. Equlp. s
3 1 340 Ofica Fum »h.e nwrl Ftxturaa s
3 2 840.1 Com puters and Software s
3 3 341 1 ranaportstnon Equipment s
3 a 3a 1 ,1 Trans ponatlon Equipm ent Gow cans s
3 5 342 Stores Eau proem s
3 6 $43 Tools ana Work Equipm ent s
3 7 344 Llbonnkxy Equ»pm s nt s
3 8 : u s Power Operand Equipm ent s
3 9 346 Communications Equipment s
4 0 $47 Mtscellanoous Equl:>m¢n1 s
4 1 347. 1 Mbcellanoous Equium aul CNG s
4 2 M Y Other Tangihls Plant s .
4 3
4 4 Subtotal s s s s s s
i s
4 8 903 Land and Lam ! Rights s s
4 7 904 Slruclures and lm gxovam anls s
4 8 940 Office Fum nuro and Flxm ros s
4 9 940.1 Oom pum s and Software s
5 0 940.2 Cus wm cr Firs t s
5 1 955 Power Generation s
5 2 995 Power Operated Equipm ent s »
s o 997 Mnscdlansouu Equipment s
5 4 s ubtotal s s s
6 5
5 6 T o w s s s
5 7
s o
ss $.UEQBlM§.S£0EDLlLE a e ma i c ue nums ;
6 0 Wo rk p a p e rs B2. page 3
61 Tes t»m ony
l
DECISIGN NO. 82134

n - i Fnnip an nn 1n1r.4\n°s.4ss1Arnaxllmnnn7n1F~
DOCKET NO. W-01427A-25-0126, ET AL.
Llheny Utilbtiu (LMCIIRQU Park W.l¢r 81 8.w.r) Cold. Water DMi\on emu
To! Your Ended Daoombor 31, 2024 Sdilcmni sawn B2
Onginn' Coal RuN: Mauve Prdama Adhmments bngce 39
Adlustmam Number \ I Wrtnesx Bcurssla
Lina
Na.
1 8QSRMQOELAE$!&
2 Adowa
3 Tis! You
4 And onglw 2019 2020 2021 2022 2023 2024 Ssmomom
5 u p Q-mann M Annum mammals amnmnnm Ai§l!l!m aaulusmnm ulununem annssmun
6 106 Cansuuction Camplnied Nos Classmate
7 wt Orgamation Colt
a 302 frandxlsc Cost
9 t o : Una Ind Lara R\Qh\5 us; (263) (312)
10 $04 Slrucines Ami lmurwemunl8 lanes: (9.€05)
11 Ana C¢.¢.ctmg and Wound-w Res
72 308 Lak e Rwer Ana Olhu m m
13 307 Wok and Sprangs USB! <*9.5a01 (27.054) (47,336)
14 Ana lnhlrmmn Gminrlna in Tumsbi
15 sos SuoW Mains (1,069) (1,069)
15 310 Pllwur Generation Equpmuu 141) In)
17 310.1 Solar Genralor
18 311 Eludric Pumping Equipment asses: (42) (905) (8,3:aa)
19 n o Wnini TmMlvuorN FqupmnM
zo 3204 Waiev Treulmenl Plant (2,713) (116) (7.012) (2220) 15,182) 117.B431
21 320.2 Cnem\c.al Soluuol Focuses (437) (437)
22 330 Day. Rnnrvolu 8 Stanmlpa
23 :ao.1 Stoxagc :u's
?4 31102 Pressure Tan's
25 331 Tris. and Dust Means
26 as: Suwicos
27 334 m u m
za was Hydrlnls
29 335 Backflow Pfevcmion Devices
30 339 Other Plaml Ind Mvsc. Equip. UB) (15)
sn $40 Offlcc Future .no Fun turns
az 340.1 Computers and Sofiwau
as 341 Tranaporbalaon Equipment (358) (368)
34 an 1 TralwspofuNum Equnpmenl . Gulf Cits
:is 342 Stan equlpmoi
to 343 Tools am! Work Equipmom
37 344 Lawn1nry Elul:>mun
so 345 Few Ouarawd Equpvnenl
be 348 Cnmmunilzntusru Emipvnrrn (108) cm (109)
l
40 547 Mlwelansous Equlnmsli
41 347.1 M¢sulaneoul Equngmad CNG
12 348 Ofhef Tangnne pram
43
44 Sublolnl s s am: s (6542) s (mow s (21550) s s (44.027) s (83.43)
45
48
47
48 aur9nnuQ§§nam4£ nnmasuEma:§
49 Wink papa; B2. pass 3
50 Tntimany
DECISION NO. __82134___

Do:uei1\ Env! o- IU: D412507869954908M0031109ICZADIB
Docl<Er NO. W-0I 427A-25-0126. ET AL.
Uberty Utilities (LltchHold Park Water a. Sewer) Corp. W.ter Division Exhibit
Test Your Endec December 31. 2024 Settlement Schedule B2
Origiral Cast Rate Base Proforma Adjustments Page 3.5
Adluslmenl Number 1 K Witness Bourassa
Line
!*l¢L
1 R i i n fPl n1 oPl rtR t r Io n
2 21,090 Settlement
3 Aqusled Settlement Adj used Plant
4 Acct. Original B 2 Original Per
5 _WL Description Cost Adiuslmcnls Cost Rcconslruchon Ddloruncc
6 106 Construction Completed - Not Classlf ed s s s s s
7 301 Organization Cost 21,090 21.090
a 302 Fl3Nd1i8B Cast
g 303 Land and Land Rtgnls 3 094,055 (312) 3.093.743 3,093,743
10 304 Structures and Improvements 31.906,016 (9,805) 31 .896.410 31 .896,410
11 305 Collecting and I mpoundlng Ros.
1? 306 Lake RWar and Qthnr Intakes
13 307 Wells and Springs 21 829.952 512,965 22.442,917 22,442,917
14 308 Inliltralton Galleries and Tunnels
15 309 Supply Mains 4 234.667 (1,069) 4.233.597 4.233.597
1G 310 Power Generation Equtpmertt 532,059 (41) 532,017 532,917
17 310 1 Solar Gawrntor 2 247,645 2,247,645 2,247,645
18 311 Eled'ic Purnuing Equipment 8.894.977 131.904 9.026.881 9.026.881
19 320 Water Treatment Equipment 5.602.397 (5.602.397) (0) (0)
20 320. 1 Water Treatment Plant 6.555.421 5,104,499 11,559,920 11,659,920
21 3202 Chermcel Solution Feeders 51,283 523,542 580,825 580,825
22 330 DisL Reservclrs 8- $lurvdl.>lpe 1,052,045 (1.052,044) o o
23 330 . 1 Storage tanks 91 1.984 224.051 1.136.035 1.136.035
24 3302 Pressure Tanks 190,054 490.054 490.054
25 331 Trans. and Dist Mains 51206,703 1 798,068 53,004,770 53,004.770
28 333 Services 7 892,895 3,469 7 896,184 7.e98.164
27 334 Meters 1 452.831 10.835 11,463,666 11.463.666
28 335 Hydrants 3,994,755 (15,125) 3.979.630 3.979.G3C
29 336 Badrfiow Prevention Deuces 101,427 101 .427 101 ,427
30 339 Other Plan! and Misc Equip 434,858 70,883 505,541 505,541
31 340 Omer: Furnlture and Fixtures 809.113 (40,538) 768.575 768,575
32 340 . 1 Computers and Software 44,717 (30,363) 14.354 14,354
33 341 Transportation Equipment 1,035,398 case) 1,035,040 1,035,040
34 341 1 lranspcnahon equipment . Golf Carts 28,2bb 22,952 52,207 52,2w
35 342 Stoves Equipvncnl 37.143 37,143 37.143
36 343 Tools and Work Equipment 164.631 (16.500) 148.131 148,131
37 344 Laboratory Equipment 15.537 15.537 15,537
38 345 Power Operated Equipment 18,956 18.956 18,956
39 348 Cun\n\un»c8lions lzquipnwnl 1.807.043 (109) 1.808.934 1.808.934
40 347 Miscellaneous Equipment 31.860 (26,799) 5.081 5.061
41 347. 1 Miscellaneous Equlnmen! CNG 468.499 468.499 460,499
42 348 Other Tangible Plant 130,467 130,402 130,462
43
44 TOTAL5 s 167,005,324 s .607.906 s 168.613,231 s 168,613,231 s
45
46
4/ SUPPORTING SCHEDULE 3gg;_Ap SCHEDULES:
48 B2. P*l98s 3.1 through 3.9 B-2, owe 3
49
82134
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DOCKET no. W-01427A-25-0126. ET AL.
Llbnny Utllltln (Lltchfkld Park Witor c. Sewer) Corp. Wlt.r Dlvlslon
Cxhlblt
Test Year Ended December 31, 2024 Schedule B-2
Ong na Ccsl Rule Base Proforma Adjustments Page 4.1
ANjusimem Number 2 A Wltnoss: Bourassa
Lint!
MQ.
1 _gga\e Plan AID
2 111 [2] m 141 = I1IXI2]X[3l Dlmct
3 Lnburly Settlement Nlocatec Allocated
4 A w, Olignrwl UlllI1l€S Original
O 7IQIll8l Settlement
5 _No Oescr-plion _ Cost Factor Facto Cost ND Adjustment
M L M
6 903 Land and Land Rights s . 6.6567°4 20.791996 s - s . s 1
7 904 Slruclurn and Improvements 4.041.052 6.6557% 20.791996 55,930 55.930 .
8
9
10
11
12 l 1 I
13
14 903 Land and Land Rights s 51 .39% 24,0267% s s s
15 904 Struciurex and InpmvQmQnIx 732,762 51 .39% 24.026796 90,475 90,475
16 940 Office Iurruxure and Equlpnwnl 1 .408.790 51 .39% 24.026796 173.944 2b. 137 148.807
17 940.1 Computers and So*lware 937.092 86.78% 24.0267% 195.388 171 .781 23.507
18 940.2 Customer First 2.115.461 86.78% 24.026796 441,003 442.286
19 955 Power Generation 999 51 .39% 24.026794 123 (1203)
123
20 995 Power Opesfalced Equipment 155.147 51 .:$9% 24.026796 20.391 20.391
21 907 Miscelleneous Equipment
22
23 TOTALS
24 903 L8M ana Land Rights s s s
s
25 904 Slrudufes and lnlpruvemenls 4.773.814 146.406 148,405
ze 940 Office Fumirxxe and Equipment 203,589 173,944 25,137
148,807
27 940.1 Computers and Software 823,872 195,388 171 .781
23,607
28 940.2 Customer Fig 2.121.231 441,083 442286
(1,203)
29 965 Power Gwwrolion 999 123 123
30 995 Power Opeiaied Equipment 155.147 20,391 20.391
31 997 Miaoullnnnous Equipment
32 Told ___llIIIIlllllI. s 8.088.552 s 977.334 s 808.123 s 171,211
33
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46 §!EEQ3HN§§§dEDM~E
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46 Wndl papers B2, page 4
47
i
DECISION NO. 82134

Nl}0ll Fnvw 'w IN re 195970.4499449511A.nnn»xx1wm¢An1a
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchflvld Park Wntor 8\ Sewer) Corp. Warn Dwislon Exhibit
Tut Y..r Ended Dooomblr 31, 2024 Seltiemant Sdled.zle B2
Orlglnal Cost Rate Base Proforma Adjustments Page 4 2
Adjustment Number 2 B Witness: Bourassa
Line
NH.
1 postTest Your Plant and CWIP Translers ND
2
3 Settlement Senlemem Dlled
4 A m . Dew PTY PTYP Plant PTYP Sottlemsrl
5 Nn Mscnhlion Bam Plant Dapra(:lnn Dewgqalinn Adiuflrrmnl
6 301 Organization Cost 0 00% s s s s .
7 302 French se Cost 0.00%
8 303 Land and Lund Rights 0.00%
9 304 Structures and Improvements 3.33%
10 sub Collecting and Impounding Res. 2.50%
11 306 Lake River and Other Intakes 2.50%
12 307 Walls anti Sr>fi\9* 3.33% 7,318,151 121,847 112518 9329
13 308 Inflltmlion Gallcrics and Tumors 6.67%
14 1109 Supply Mams 2.00%
15 310 Pnwnr Ganarahnn Enuipmant 5.00%
16 310. 1 Solar Generator 6.67%
17 311 electric Pulwdng huutpmenl 12.50% 455.232 28.452 19.219 9.233
18 320 Water Treatmrtt Equipment 3.33%
19 320 1 Wsver Treatment Plant 3.33%
20 320.2 Ctmemtcal Solutlow Feeders 20.00% 64,549 6.455 2.063 4.392
21 3110 Dull Rusuwuiru & Standpipe 2.22%
22 330 1 Stoiage tanks 2 22% 224,051 2,487 2.487
23 330 2 Pressure Tanks 5.00%
24 331 Trans. ind Dist. Main! 2.00% (0) (0) 8,094 (6,094)
25 333 Servloes 3.33% 1 13,469 1 ,ass 1 832 58
26 334 Meters 8.33% 301 .465 12.556 8,747 3810
27 335 Hydrarvts 2.00% (0) (0) 151 (161)
2B 336 Backflow Pmvenlinn Dewiness 6.67%
29 339 Other Plant and misc. Equip. 6.67%
30 340 Offke Funlture and Fbautus 6.67%
31 340. 1 Comnulefs sec Software 20.00%
32 341 Tmnaporianon Equlpnmnt 20.00%
33 341 1 Tmnspartaiion Equlpntm Gdf Cats 7.83% 22.952 899 899
34 342 Stores Eqdpmenl 4.00%
35 343 Tnnls and Work Cqulpmeni 5.00% (0) (0) 413 (413)
36 344 Labaafory Equipment 10.00%
37 345 Power Operated Equipment 5.00%
as 346 Commumcahons tquipmenl 10.00%
39 347 Miscellaneous Equpmont 10.00%
40 347.1 Miscellaneous Equyamem CNG 3.33%
41 348 Other Tangible Planl 10.00%
42
43 SuMnral s 8999.870 s 174,585 s 151,035 s 23550
44
45 903 Land and Land Rights 0.00% s s s s
i s 904 Structures and lmouovemenls 2.56%
47 s o Olfnce Furniture and Fiattuves 6.67%
48 940.1 Comvders uwc So'lwow 20.00% 454.712 45.471 23. 527 21 .844
49 840 2 Customs' First 5.00%
50 955 Power Generation 5.00%
51 995 Power Operand Equqxnem 5.00%
52 Snmoml s 454,712 $ 45,471 s 23.527 s 21.844 23
53
54 Total Et 8.954.582 SI .;?0.056 s 174,652 s 45.384
55
56
57 SUPPORTING SCHEDU_LE RECAP SCHEDULES
ss Work nqsers B2. page 4
59
DFCISION NO. 82134

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DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Wawr a Sewer) Corp. Water Division Exhibll
Tort Y-r Ended Dl¢:lmblr 31, 2024 Settlement Sdtedula 82
Original Cost Rate Base Proforma Adjustments Page 4 4
Adjustment Number 2 D Witness; Bourassa
Line
M.
1 CWIP Tranmsm MJ
2
3 Settlement Settlement Direct
4 Act.1 . Devi CWIP CWIP Transfer CWIP Tramler Settlement
5 Na Qqjggipttrgn Rain Transtnn: Dwf°fi»ti_°n éellwifnonl
6 301 Organ when Cost 0 00% s s S S
T 302 French se Cost 0.00%
8 303 land aM Land Rights n 00'/4
9 304 Structures and Improvements a 33%
10 305 Colloctmg and Impounding Ros. 2.b0%
11 306 Lake River and Other Intakes 2.50%
12 307 Walls and Springs a 33% 1 102 732 18.360 18,350
13 308 tnfltration Gattcnes and Turrets 6.67%
14 309 Supply Mama 200% 6,298 83 83
15 310 Pawsr Gnnarahon Equipment 500%
16 3101 Solar Generator 6 G7%
17 311 tlecuic Punvinq huupmenl 12,50% 1.566.893 104.181 104.181
1B 320 Water Treatment Equinmenl 333%
19 320 1 Waor Trealrrnen! Plant a 33% 748 503 12463 12.461
20 320.2 Chemical Solution Feeders 20.00%
21 330 D 11l Ruluivuvru & Slnndpipe 2 22% 1 052044 11.578 11,878
22 330 1 Storage tanks 2 22%
23 330.2 Pressure Tanks 5.oo°/.
24 $31 Trans, and Dial. Moirls 2.00% 174.133 1.741 1.741
2s 333 Servlceu 3.33% 557.025 10939 10.939
26 334 Motels 8 33% 1,59G.900 GG 511 66,511
27 335 Hydraris 2.00% 38.693 3.227 3.227
28 336 Backlkm Pmwsnlinn Davie's e 67%
29 aaa Other Plant and Misc. Equip. 6 G7%
30 340 Office Funiturc and Fixtures 6.67% 28 488 950 950
31 340.1 Ccmuulefu and Scftwure 20.00%
32 341 Tmnsponntinn Equlpmiwn 70 00% 72.854 7235 7,235
33 341.1 Tnansporlntion Equipment Golf Cans 7 83%
34 342 Swiss Equipment 4.00%
35 343 Tmls Ana Work Equipment 5 M%
36 344 Labaaeory Equipment 1000%
37 345 Power Operated Equipment 5.00%
38 346 Communications Equipment 1o.u0%
39 347 Miscellaneous Equipment 100046
40 347.1 Miscellaneous Equipment CNG 3.33%
41 348 Olaf Taegibk Plant 10.00%
42
43 Subtotal s T 428 064 s 237.349 s 237.348 s
44
45 903 Land and Land Rights o 00% s s s s
i s 804 Szrualmes and Improvements 2 56%
47 940 Offaoe Fumiiure and Fixtures 6.67%
45 940. 1 Comvulers old Soltwow 20.00% ¢
49 940.2 Customo First 5.00%
50 955 Power Generation 5 00%
51 995 Power Operated Equipment 5.00%
52 Subinvll s s s s
53
54 Total s 7.4§8.Q(§§ s 237.349 s 237.349 9.
56
58
57 SUPPORTINQSCHEDULE RECAP§§HEDUL§S;
58 Work papers B 2. page 4
59
DECISION NO. 82134

Unman nom U :n=aof.»u1x»4lu*n.u.1auauuzw1u
DOCKET NO. W-0I427A-25-0126. ET AL.
Llnny Uhllll.. (Lldnlbld P.rl Wdnr A Soulful) Coup. W.lor Divlabn Exhlhh
lm Hal ensue Ducvmbor 31, 1021 suuunwrn Schuuuw B2
Odghu Cost R.tc Blew Proforma Adjustments pew 4.b
Adjusunom Number 2 E Wtnus Bnurusa
U00
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s Sewenum Sdllomenl Sstllw-i Saxvemam S.:aww Dwrtd
4 Ana. Dept Addnom mm P0? I 2077 Qnvn i n PTYP Smrmvurn I
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8 am O1g.u\i¢allun Cos\ o 0071 s . s s s
7 aoz Fllrlzhbt Cut umm
a ana Lana and lam Rlgvia GUM
9 104 Slrucine and lrmfovemem 333*
10 306 cellwmg md lrnaoumiu R.; 250%
I I JM Lake Rlvuv all Olaf hiatus 250%
12 :nor Will ind so-uf 338%
1 : 100 lnllmvvv Gwen: :nu Tunnel s 67%
14 309 s-»»»y Mom 200%
15 310 Fwsv Gcnnrawn Equnmunl 5 of.
16 110.1 Sola:Gonomlof s 67%
17 311 Eocric Pumchg Enupmam 125098
18 120 Walui TIllsU\lUIII EWUIIIUIII 333%
19 320.1 Waler nwnnvu Plum 3339,
20 n o . : Chemical Suhltim Fawn 20 QU*
21 :to one Rnuemnm a Eanqaha 222-4
22 330.1 Stonlge lanka 222%
23 330.2 P-:svn Tanks s 00%
24 331 Trans. and Dux M.n\ 200* 1.ass.aae 5,a67 15,546 ms: 28,318 43154
25 :as Sowucus 335%
28 a n Main s 33%
27 335 Hyd r o 2 ooy. l
28 :so Bnddlnw pvuenim Davina s 07% i
ze 339 Olli Finn and M.c. Equal o 67%
au 340 Ulla. FurNl\n and Fllluw sow.
31 so: 1 Calf"W\U¥ MN Software 2000% i
32 M1 Tnnwonauan Enuvmun 2000%
as an 1 rrmlpnvuamn EQulpn..n Gal! Gan: 1,aa9s l
$4 342 Storm Equipmsni 4 00%
35 343 Yocls and Wax Equpmtnl 500%
as JM Lnbonb'y Equlpmnm 1ooa$s
37 ms Furor Oporawa Equpmom 500%
as :as curmuicauona kuuxxnanl 10.ao'»s 1i
as 247 mmcuancoun Ea\lvfn¢m 10,0094 l
an HT 1 M-mlananl» Eawnwrvll CNG s 38%
41 u s our lmgtb von wcuss
42
43 Sulllnlai s 1.355.388 s 28.319 s s Ursa
44
45 sea Lanark Llfid Run 0 00% s s x s
40 904 Strvctuvu and Imnwvsmelt awe .
47 940 Olllct Furluru and Rmluru 807% .
as can 1 Crwqwnnn Ana Snlw-n zooms 454,712 45,478 near 71,a44
49 9402 Cuuwuv Fol in% .
50 956 Fowl' Gouafnlaon sum
61 use Four Opamnd Eaulnmenl sum .
52 Subtoid s 154.712 s 45.411 g 2:1321 s 21 ,6.4.23
so
64 Tow is 7,l104U1l s 71,769 s 23427 S 85698
55
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an Wr.\: plpots B7. page 4
so
DECISION NO. _82134

Dlww n-num oizo=n»l4¢»mm;amnm.ml
DOCKET NO. W-01427A-25-0126. ET AL.
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91
DECISION NO. 82134

0085191 E-wwv D nazsaiucu>4ssAlnoJauoa1n2AD1s
DOCKET NO. W-01427A-25-0126. ET AL.
Lihcny 0tl111b0 (Llshlluld Park Wahl G Sowov) Corp. wav Dwlslon Exhbh
1on Voar End ac Uncommon 31. 2024 some rem sanauu B2
Oliglnal co Rain Base Pmlovma Mustmoms Pnga 4 7
Adjmlmenl Numb! 2 . F Winll. Bnuallia
Use
i n
1 enmmfnnm
2
3 Sailsmsnl 86l\lamsn1 Sumnmam Selilsmsm Settlement
4 Am . v i ' Sasltlunom m o : o f 2022 2028 2024 Snnllunwl
s 4 Deeaplnn » Removals 9 8 4 4 o¢pm!:1lnm DepmouVon g se @a L f- I L M Q 9 8 Adjustment
8 am 0ll;ani¢atlon Cos! o nos s s s
302 Francbiso Con o.oo:=.
7a
303 L.nd uvd Lnwd Rnw 0 00%
9 Ana Stmcturu and Ilqwuvomnnu 3.33%
10 305 Coladng and lmpoundhq Ra.. 2.50%
11 308 Lake no and Other um m 2.sov.
12 307 was md Spnngu 3.33%
us :mo IMllmticn Gnlulnn md Tu.lah 8.67%
14 $00 Swuiy Manchu o f *
15 310 Purr Gonrlnon Eqdnrrnn( 5 0 0 *
15 3101 Sour Gerwvaw 667%
11 311 Fhdrk Pumping Equqwnant 12 50% (9,494 71) ($9142) (1.1M up (1 .We IIA) (1 ,186.84 ) (us e as ) (!L340.T7)
18 329 Wll\.r Tmalmanl Eouivmanl 3.33% 1as.ooo.a7l 11.485.311 12.990513 ¢2.ino.e1> (2.900.61) 010.zs7.14)
18 383.1 wnnr ynnlmnnt Pun! 3.33% aa.orxs or 1 455.31 2.93061 29:10.51 2,930.61 10,57 14
20 a zo z Cnermcd Sah111o» Faction 20 00%
7 1 330 DD Ra se rwl h A S l a a u n p krs 2 2?%
2 2 : n m S l u a g o u p . 222%
2 3 330.2 Pleasure Tanks 5.00%
2 1 331 Trans. and Dist Mails 2 ons
25 333 Sawlels a 33%
2a 334 Me e r: a l a * ¢aJ.e30,18) ca.ase2s» 1a.s5u.2s)
2 1 335 Hynmrvls 2.09%
28 336 Badlflow Prawnhon Devices 6.67%
28 389 OIMI Pllnt and msc. EDS e m u
30 340 Ohke Furniture an: Fixtures 6 67%
31 340.1 Ccnlgutncs Ana SMwnm 20 go*
32 341 TinnaponaUon Equgamanl 20.00e.
as 3411 Tnnanorrauon EquonoIt Go! co n a v .
24 342 Swvu Equlnmul 4 00%
as 348 Tar* and WOrld Equlpmnm 5 go*
ao 344 Labu*.y Equipwlrl 1o.ooas
37 345 Paw opomoa Equgmom 5.09%
as 548 Communioauzns Eoliamuni 10 00%
as 341 Mhnalamnls Eqnqmnrn 10.00% 126.19901) (\,B3B.B5) (2,a70 01 I (2.BI8.91) (ZG7991 ) (zs ra a u l (12.058.58)
40 347.1 Mlaulldlltlut Eqwm s nt CNG 3.33%
4 1 ala Other Tangnale mm 1o.uos
42
43 8lh1n9a1 s 1106.920 s ¢1,9:m s m s n s (:s.aa7l s (=4.w» s (7295) x (241,769)
44
45 803 Una nm Llifld Run-== o go*
45 904 8uuo1ul\s and Imnuuvemwh 2 56%
4 1 040 Ofheu Iurvlhnw .nu Hxturus s 67%
48 940.1 Compulen and SMwave 20 nos
49 940.2 Cunbmer Fist s 90%
50 955 Fowl Ginovawn 6.00%
51 995 Fuwov 0¢01l\O° Ewvmm 5.00%
52 Suhintnl s . s s s s s go
83
54 n o s (116,924) s (1,933) s (3,867) s (5,557) s r=».a67» s (7225) s (2o.7ss)
66
58
57 sumnsnuassuamas
so Work plpevs
as
DECISION no. 82134

r)¢v.l,¢lg\ Frwvlcnn ID mwnrfunnl./aln.4nn :nvuanvwmun
DOCKET NO. W-01427A-25-0126. ET AL.
Ubeny Utilities ILl¢hficld Park Water 8 Sewer) Comp. Water Dllridon
Ealhibwl
TadYear Ended December at, 2024
Selllanont Schsmide B2
Origirll Cool Rate Bus Fluinrma Adiusunonns
Page 4 B
www" Nlnnw 2 F
Wllrwus: Bnunuuun
m s
NR.
1 aunmflt abm
2
14
S0110rru2 Sctlemenl Sefzlamau Scltlemanl
4 Arel. D i f SoNlcmull 2021 2022 2023 2024 Sellksncn
5 al-» Dnscnplbn M Y Rornvals :nation Q M -9 Sal in jopwuialhn A_gjg».lmcml
e 301 Oaganimam C081 0.00% s s
s
7 302 Fraf\d~ise Cos! 0.00ss
8 303 LAM and land Rouen 0.00%
9 304 slmau4 and lrrpvovarneml 3.33%
10 Sus Coibcing Bnd Mpilmdrg Res. 2.50%
11 308 Luke Rfvef and Ot'\cr Intakes 2.5036
12 307 Wollu and Springs 3.33%
13 308 lmluuhon Gslof- and Tunnels 6.67%
14 309 supovy Mama 2.00*
15 SIU Power Genevnuon Fquqamem 5.W%
i s 3101 Solar Gwflwatm e.87%
17 311 Elzcuic Pumping Equipmcsnl 12.50%
18 a2o Water Trealmenl Ecwomuu 3,3336 80.275 1 47 482 1 . m 2,aoa
19 820.1 WllnrTroams'n Flank 3.33% (80,275) (*) (47) (4821 (1,773) (2,303)
70 320.2 Chemkanf Solution Fn¢¢10r¢ 20.00%
21 330 DM Resnrvnh 8 Sinndppe 222%
22 330.1 Surage tarlzs 2.22%
2a 330.2 Prcaaur: Tanks 5.00%
24 331 Trans. UV Do Mum 2.00%
25 Asa Services 3.33%
26 331 Motors 8.33%
77 335 Hynriams 2.00%
8 336 Baddlnw Prevcmlnn Davie's 6.67%
29 339 Omar Plan and Man Equp a 67%
t o 540 Of hoe Turri\u and hxtuvns 8.87%
31 340.1 computers and s04tw=»~ 20.00%
32 341 Tranapodniion Equipmam 20.00%
as 341.1 Trnnspnrtrmnn Eqrjnmort Gull Carts 7.83%
54 342 Stores Eqlnpmen 4.00%
35 343 Tools and Was Euurpmcnt 5.00%
as 344 Labuilory Equipmurul 10.00%
as 345 Power Operatic Equipment 5.00%
38 : be Communications Equpmsnn 10.00%
as 347 Mnsoolhnsnus Equipment 10.00%
40 347.1 Mrnrnollnnnous Eqmmmnr . CNG 3.33%
4 I 348 Omer Tanglnle Pram 10.00%
42
43 Sumurgx s s s s s s
44
45 903 lm6 Md LAM Rights o.00%
4a 904 Smxznns Ana Impawumenla 2 .asm
47 940 Of§oc Furiuc and FiaNna 8.675<.
pa 940.1 Cumwlzn my Suftwvu 20.00%
49 940.2 Cuabmei Fvsl 6.00%
50 066 pow Gonavulion 6.00%
61 ess Power Operates Equpmom 6.00%
52 SLMMBI s s s s s s
53
54 Tulil s s s s in s
55
58
57 §LlE & 8I. IN§. §§t li8JLE
s s we( pegasus
59
i
DECISION NO. 82134

Dunsmvwwlb wzuuav nmm¢w1u
DOCKET NO. W-01427A-25-0126. ET AL.
Llbcdy Ulilllho (Lllchlldd Pro We.: 8 Stun) Culp. W.t- Division Exhibit
let! vi: knew Dlwtnlcsl 31. 2024 SGIIIHIIIIYII $CII4UM8 62
Oneal Cost Raj Ban Pfolvfml Aujuiunonu Pigeon 9
Aammam Numbs 2 . B Wnnml ummm
U00
Na
1 arm~uuunnan
2
a Pam Sdlsnunl DMC!
a And, Oepr smouwn 2019 2090 2021 2022 zoo 2021 Seltemem
s NV, Dswlvpdon RM q u a m kivabvnnx Aistnlnx Mvwnum A-s."man Mpwwn Adpsfmid mpmm
a M1 Organuutbn Cowl o.oox s
7 so: Farm- Con 0.00%
B we Lana Ana Lam Rum 0.00% (312.31)
9 304 Sfrucuws and Imnfovunenh 3.38% (9.606.11 I
10 905 CdlucMg and iwoanig R- 2.50% Nam (180)
11 308 Luke RM. all! Olhoi hiatus moss
12 307 Wal: and Springs 3.3398 (47.:4as.1:l)
13 (12) (23) (349) (876) (1,128) Anna)
:of lnilmlon Galleon md Yunnuh u ' s
14 :me Sinofy man 2.0% (1.0e9.m (11) (21) (21) (21) u m
16 310 Fbwiv Gonnrallon Enuwnani 5.00% (m )
16 110.1 Solar Gcnunlof 615795 (1) (1)
11 311 Elctrk Pumping Equpmlm 12.50% (sassy) (337) (673) (878) (619) (735) l a m )
is :zo Waller nu.wnw»l EuuVmanl 3.33%
19 320.1 Want Tmnmnm Finn! anal. 07.8434) (45) M ) (911) (see up (anal (1,513)
20 3202 cuamui Sclulson ¢o¢don 20.00% (437.42) (44) (87) (87) (57) (07)
21 :so DaN Rnervon a tianapna 2.22% (394)
22 ago. 1 Siovuge urn u n
73 5307 Phosuno Tar*s 5.0078
24 331 Tris. md Dlil May; noam
25 :as Snifvwos 3.33%
26 334 Melnrl a.aass
27 335 Hydrunh zoom
2B was BndMnw Fncvcnion Dwuca Anne
29 339 Orlur run .no MM et. o.m» (18.18)
NU 340 Olhoe Fuvrllurv and Future o.sr7= (1) (1)
31 240.1 Compubn and Soffwnvn 20.009,
az a n Tranlnoflatkan Equpmnnl 20.00% 1357.721
as 341.1 Tmnsnnnulan Equumnnl Gall Cam 7.83% (36) (361
34 342 Slums E¢u¢="\.1l l,00*
as :us Tools am wma Fmlpmanl 5.00%
as 344 Lahrrmnvy Equqmlmn 10.00%
31 345 Wnwvf 09619814 equlamum 500%
38 she Comnuueullona hqmnwri 1930* names) (5) (Ml (11 l (27)
39 a n Maouaneom Equipment 10.00%
on 347.1 Msoinnems Eaiiwnrnt . GNG 3357>
41 (MB Other hng 1Clo pun 101119
42
AS §lhllImI s (83463) s (46) s up s Anna) s (1600 s (wan) s (2,615) s fund l
44
45
40
47 so~a~mu~ssunman 9
BEQAE§£MEM&E§
an Wnut papen B2, magna
49 i
i
DECISION NO. 82

Ducubigu Fl1vd.\p0 ID. B4 Izw7onosmenusawmmuata
DOCKET no. W-01427A-25-0126. ET AL.
Liberty Utllitlcs (Litchfield Park Water 8 Sower) Corp. Water Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B-2
Origlnnl Cost Rntc Bnsn Pmfnrrnn Adjustments Pngn 4 10
Adjustment Number 2 C Witness: Bourassa
Llnn
M
1 BWMMWWMMMQMLQBSEMMWW
2 Test Year
3 Adjustec Ad1uslQd Plant Settlement
4 Acct. Original B 2 Original Per A.'D
5 M.. l2§§£EDIiszn Q93 Mlvil£tr.Qzl1§ i n sesgnammn E m m a
6 108 A/D Urldussiflud s s s s s
7 301 Organization Cost
8 30? Fmnuhisu Cnsl
9 303 Lana and Land Rights
1U 304 Struaxures and Irnpruvernenls 14,128,280 1160) 14,128,100 14,128,100 w)
11 306 Collecting and ImpoundIng Res.
12 306 Lake River and Other Intakes
1a 307 Wells and Springs 2 980,937 7.143 2,988,081 2,988 081 (0)
14 308 ln'lltrahon Galleries and Tunnels
15 809 Supply Mums 321 ,760 (75) 821,885 321 885 0
16 310 Power Generation Equlpmem 333,558 (1) 333.557 333.557 (0)
17 310 1 Sdur Gcremlnr 1 574,138 1,574,138 1,574 138
18 311 Electric Pumping Equipment 3.424.285 793 3.425.078 3.425 078 (0)
19 320 Water Treatment Enuiprncnl 459,514 (482,544) (23,038) (1) 23,030
20 320.1 Water Treatment Plant 2.021 .928 376,918 2,398,847 2,486 726 87.879
21 320.2 Chemical Solution Feeders 14,1-133 628703 B4:l,538 485 342 (158,194 )
22 330 Dlst. Reservoirs a Standpipe 11,678 (1 1 .678) 1 0 (0)
23 330.1 Storage tanks 293.859 2.487 296,346 296 346 o
24 330.2 Pressure Tanks 487,805 487,805 487 805
25 331 Trans. and Dist. Mains 16.848.750 48.281 15,897,031 16,976,126 79.095
26 333 Services 3.531 ,916 58 3,531,974 3,531 974 0
27 334 Meters 6.368.388 451 6.368.840 6,368 840 (0)
?8 335 Hydmnls 1 165,378 (151) 1,165,227 1,165 277 0
29 336 Backflow prevention Deuces 69.798 69.798 69798
30 339 Olheal Planl auld Misc. Equip. 329,474 0.455 339,929 346 482 8,553
31 340 office Furniture and Fixtures 698.115 {4.567) 693.548 693.548 (0)
32 340.1 Computers and Software 35,539 (17,656) 17,883 (4 228) (22.111 )
33 341 Transportation Equipment 814,573 (36) 814.538 814 537 (0)
34 341.1 Transportation Equipment Golf Ca 25,395 899 26,293 26 293 (O)
35 342 Stores Equipment 25,253 25,253 25 253
36 343 Tools and Work Equipment 55.812 (413) 55.400 55.400 0
37 344 Laboratory Equipment 13,588 1a,sae 13568
38 345 Power Operated Equipment 15,063 15.063 15.063
39 348 Cnmrnuniinlicms Equilxnent 772,378 (27) 772,351 772.351 0
40 347 Miscellaneous Equipment 11.038 (12,060) (1,022) (1 .022) (0)
41 347.1 Miscellaneous Equipment CNG 131 ,557 131,557 131 .567
42 348 Other Tanglble Plant 130.452 130.462 130462
43
44 TOTALS s 57,095,013 s 546.821 s 57,641,833 s 57.6-8085 s 16,252
45
46
47 §QEEQBIH£i§§UEQ!LE B£QAa§§usQuu:a
48 B2, ps\ges 4.1 through 4 al B-2, pogo 4
49
DECISION NO. 82134

Docusign Enve ope ID: D412507069954968AAOD330097D2AD1B
DOCKET no. W-0 1427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Water Division Exhibit
Test Year Ended December 31. 2024 Settlement Schedule B-2
Original Cost Rate Base Proforma Adjustments Page 5
Adjustment 3 Witness; Bourassa
Contrlbutnons-In-Ald of Constmctlon (ClAC} and Acaimulated Amortization
Lln8
r
1
2
3 Gross Accumulated
4 QLAQ Amortization
5 Settlement Computed balance at End of Test Year $ 50,096,804 $ 9,507,740
6
7 Adjusted Balance at End of Test Year 47,178,391 9.426.295
8
9 Increase (decrease) $ 2,918,413 $ 81,445
10
11
12 Adjustment to ClAC/AA CIAC s 2,918,413 s 81,445
13 Label 4a 4b
14
1
2 SUPPORTING SCHEDULES RECAP SCHEDULES:
3 E-1 B2 page 2
4 B-2, page s.1
5
6
1
DECISION NO. 82134

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Do-uslgn Flwdnpe ID >a 12fnvn4w9r».4nrn.AAcn.n°nn9m9n1n
DOCKET NO. W-01427A-25-0126. F.T AL.
Liberty Utilities (Litchfield Park Water e Sewer) Corp. - Water Division Exhibit
Test Year Ended December 31. 2024 Settlement Sdwdule B2
Original Cost Rate Base Proforma Adjustments Page 6
Adjustment 4 Witness; Bourassa
v i f n AIA
Line
02.
1
2
3
4 Settlement Computed balance at End of Test Year s 5,646,964
5
6 Adjusted balance at End of Test Year 6.827.331
7
8 Increase (decrease) s (1,180.367)
9
10
11
12
13
14
15
16
17
18
19 SUPPORTING SCHEDULES RECAP SCHEDULES:
20 E1 B-2. page 2
71 B2, page 6,1
22
23
24
25
26
27 i
28
29 i i
30
31 i
32 1i
33
34
35
DECISION NO. 82134

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1
DOCKET NO. W-()l427A-25-0126. ET AL. i
Liberty Utilities (Litchfield Park Waler & Sewer) Corp. Water Division Exhibit
To! Year Ended December 31, 2024 Sonlemeru SchedWo B2
Accumulated Dafnrred lr.mme Taxes (ADIT) Page 7.0
Wdncss: Bourassa
L-no Tax
M Dcscrimnon Bunk 1:4 Difference 8919 ADIT I d
1 PTY Plant s 8.954 582 $ 8954,582 s 24 87% s -
2 CWIP Transfers 7,428,08 7 428.064 24 87%
3 Capitalized Overhead (1 .828.934) (1828.934) 24 87%
4 PTY Pam A.'D 228.056 238,514 18458 24 87% 4,591
5 CWIP Transfers AD 237,349 158,829 1.80 720) 24 aw. (20,076)
6 Capltwized Overhead A/D (235.513) (207,753) 27 759 24.87% 6.904
7 A'D Reccmcilialion Adpslment 16.252 (16 252) 24 87% (4,042)
8 Nat AIAC Adlustmsm (1 ,180.367) 1.180.367 24 87% 293,569
9 Net CIAC Adjustment 1836.969 (2,836.9€9) 24 87% (705,582)
10
11 Ir\creass(decteasel in ADIT s 16.448.457 s 14741,102 s (1 .707 355) s (424.635 )
12
13 Per Direct s 376,818
14 lncwusu(dm:rease) in ADIT from above (424,635)
15
16 Adjustment to ADIT s (801,454)
17
18
19
20
21
22 SUPPORTING SCHEDULES l
23 B2, Pnga 4 7 I
24 B2. Page 4 3 i
25 B2. Page 4 4
l
26 B2, Page 4.5 l
27 B2, Page 7 1 i
28 B 2, Page 7 2
29 B-2, page s
80 Work papers
31
DFCISION NO. 82134

Doc uolgn :NVII0°Q ID: D4253706895496BAi0033039"D2AD10
DOCKET NO. W-0 I42"/A-25-0126. ET AL.
Llbcrty Udlldes (Lltchflold Park Water a. Sewer) Corp. Water DMslon Exhlbil
Test Year Enooa December 31. 2024 s s m em ant Schoauln B7
Compmmion of Tax Depmr.in1icn in PTY Plant and CWIP Transfers Page 7. 1
Witness; Bourasea
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2
3 Tax
4 Acct. Dew PTY PTYP CWIP cwvr Transfer
5 m . n m u n u m Many) #999 she EL!!! 12424492 l a m ; IMHEQEMQM1
8 3C 1 Ovgum oibun Cunt 0.00% s s s s
7 302 Frunc*\ilua Coal 0.83%
8 303 LB'\d and Lana RIQIT5 0.00%
9 304 Structures and Im provem ents 25 SL 4.00%
10 305 collecting and lrnpoundm g Res. 25 SL 4.00%
1 1 306 Lnkn Rivnf and Olhnr lnlnkes 25 SL 4.nN%
1? 307 Walla and SpriNg! 25 S l 4 00°/. 7,318,151 746,383 1,102,732 ?2,05.'7
13 308 lnMtralion Gellenes Bud Tunnels 25 SL 4.00%
14 309 Supply Mains 25 SL 4.00% 6.298 126
15 310 Power Genevatlon Equlpm enl 25 SL 4.00%
16 310.1 Solar Generator 25 SL 4(XJ%
17 311 Fleclrrc Prrmpang Fqur:>mml 25 S l 4 w a s 455,732 1,866,893 33,338
18 320 Waller Treatment Equiurrrenl 25 SL 4.00%
19 32C.1 Water Treatm ent Plant 25 SL 4.00% 748.503 14.970
20 320.2 Chemical Solution Feeders 25 SL 4.0o% 64.549 1.291
21 330 Dist. Reservoirs & S\andplp¢ 25 SL 4 W % 1.052.044 21,041
22 330.1 Storage tank; 25 SL 4 (X:l% 224.05\ 4.431
23 330.2 Pres s ure Tanks 25 SL 4.81%
24 3 3 1 Trans. and Drill. Mains 25 SL 4.00% (0) i 0 ) 174,133 8.453
25 333 Sewiccs 25 SL 4.00% 113.469 2.269 657.025 13.140
26 334 Motors 25 SL 4.00% 301,465 6.029 1.596.900 31 .938
27 335 Hydrants 25 SL 4 W'/4 (0) (0) 322.693 6,454
28 336 BackNrvw Prsvanlunn Dsvrrns 95 SL 4 (x1 %
29 339 Ollwr Plarrl OW Mrs c. hqurp 25 SL 4.00%
30 340 Office Fum ilure uwJ Fum es 5 SL 2 0 .m % 28,488 2.849
31 3 4 0 4 Com puters and Software a SL 33.33%
32 3 4 1 Transportation Equipment 5 SL 20.00% 72,354 7.235
33 341 1 Transportation Fquipmen! Gnu Cans 5 SL 20.81% 22 .952 2.295
34 842 Storms Equipmwnl 7 MAC R S 14.29%
35 343 Tods and Work Equiom em 7 MAC R S 14.29% (0) (0)
36 344 Leboralory Equipm ent 7 MAC R S 14.29%
37 345 Power operated Equipm ent 10 MAC R S 10.00%
38 346 Com m m icm ions Equipm ent 5 MAC R S S U M %
as 347 Mvruanllanacuaa EqwpmeM 1 o MAC R S 10 II)%
40 347.1 Mannallnnoom Equipm ent CNG 25 SL 4 m m
41 348 Other Tangible Plant 25 SL 4.0094
42
43 Suhm tal s 8 ,4 9 9 ,8 7 0 s 162 729 s 7,428,004 s 156,629
44
45 903 Land and Land Rights 0 .0 0 % s s s s
46 904 Slruuluws and lm pluvum enls 25 SL 4 . m %
47 940 Of hoe Furrlture and Fnaulvas 5 SL 20.®%
48 940.1 Com puters and s oftware a SL 33.33% 454.71227 75.7a5.38
49 940.2 Customer Furs! 3 SL 33.33%
50 9 5 5 Power Gcm srouon 25 SL I1.{l3%
51 9 9 5 Power Overulud Equipm ent 25 SL 4.0024
52 997 Mis cellaneous Equiom em za SL 4.00%
63 Subwlal s 454.712 s 75,785 s s
54
55 Tun: s a,9s4.5a2 s 238.514 s 7,428,084 1 se,s29
56
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DOCKET NO. W-0 I427A-25-0126. ET AL.
Llberly Utllltln (Lltchflold Park Wltor a Soworl Corp. Water Dlwslon Exhlbll
Test Year Ended December 31, 2024 Seltiement Sdledule B2
0r»g»nal Cost Ralc Base Proforma Ad;usLmcnts Page 8
Acijustrnem 6 Witness Bourassa
Excess Accumulated l3¢f¢l ll¢nyn¢ =!,¢_Q\3rr
Line
MQ.
1
7
D' Huge
3
4 Accurnulatec Deferred Income Tax Under New 7 ax Raves - Asset (Lvabllhy) s (1.506,147)
5
8 Accumulated Deferred Income Tax Under New Tax Rates Asset (Liabnlty) Per GL S (1,.'505.147)
7
e Excess Accumulated Deferred Income Tax EADIT s
(0)
g
10 TY FADIT Balance s (1,505 147)
11
12
13
14
15
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20
21
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25 PP 11 H AP .. .
28 E.1 B2. page 2
27 work Papers
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82134
DECISION no.

Sumer Ennis IU 941z=c 70¢:'.104sa m:un.curc2Ac1e
DOCKET NO. W-0 I427A-25-0126. ET AL.
Liberty UtllNles lulchflelu Park Water a Sewer) com. Water DWlslon Exnbll
Test Year Ended December at. 2oz4 Sctllc'ncnl Schedule 82
Orlglnal Cost Rate Bass Proforma Adluslmcn1¢ Page 8.1
Adjustment 6 wilnnns Bnmnnn
Line Lan Rule Cao Decision W.l.r Wan. Wnlor Total
242.
lQ EADIT Balance 12.31.2017 s 2.031.159 s 2.236.878 s 4,268,037 3.700%
Amorflzal-on ponod 27.03 2506
3 Annual non-num s 15.145 s 89.261 s 164 406
a SIM Data: 14112018 iii 2016
1 Tux Rule: 24 870% 74 870%
b
EADIT Amortlzltion Activity
Opening Endlng
x Year Months Balance Amorllunlon Balance
9 ?01 R 1? s 7.031 ,158 s 75 145 s 1 9"»G 014
In 2019 12 1.856.014 75 145 1,880,870
II 2070 12 1.880.870 75 us 1,805,775
12 2021 12 1,805,725 75.145 1.730.581
13 2022 12 1,731,581 75:45 1,655,436
14 2023 12 1.655.436 75,145 1.580.291
l< 7024 12 1,580,281 75 145 1.505.147
16
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DOCKET NO. W-01427A-25-0l26. ET AL.
Liberty Utilities (Litchfield Park Water s Sewer) Corp. - Water Division Exnibil
Test Year Ended December 31. 2024 Selrsment Schedule C-1
Income Slalemanl Page 1
Wdncss: Bourassa
TeM Year Test Year Proposed Adlutted
Une Adjusted Settlement Settlement Adjustac Rate with Rate
M Rnsnlls Aduslnmcnt Results lncrrnsc Incrcnsr:
1 Revenues
2 Melemd Water Revenues s 15.967.126 s s 15.967,126 s 5.315.591 s 21.283.717
3 Other Water Revenues 184.885 184.885 184.885
4 Total Operating Revenues s 16,152.1)11 s s 16,162.811 s 6,316,691 s 21,458,602
5 Operating Expenses
6 Solar»es and Wages s s s s s
7 Purchased Water 237.928 237.928 237.928
B Purchaser! Power 1,628 446 (1,245) 1,625,201 1 .625.201
g Chemicals 1,220885 1,220.885 1 ,220 885
10 Fuel for Power Production 0 o 0
11 Materia: and Sunplles 93.474 93.474 93 474
12 Contractual Sawlcss Engineering
13 Contractual Servsces Accounting
14 Contractual Services Lage! 47.202 47.202 47.202
15 Contractual Servlces Management 4.553 839 (209.714) 4.344 125 4,344,125
16 Contractual Services Tasting 93 139 (17,124) 76015 76015
17 Contractual Services Other 234 557 234.557 234 557
18 Rental of Building/Real properly
19 Renal of Equipment 22,906 22.906 22,906
20 Transponateon 159.379 159.379 159 379
21 Insurance Vehade g 448 844a g 448
22 Insurance General Lnabilily 118.161 116.161 116 161
23 Advarlisbng Exqaeose 38 036 38.036 38.036
24 Reg. Commission Exp. Rate Case
25 Reg. Commission Exp O1*1er
26 Waler CuuservulkJ1 Expense BB 790 86 790 88 790
27 Bad Debt Expense 152 874 (27,550) 125 324 77.870 203 194
28 Miscellaneous 267.146 267.146 267,146
29 Depnadalion 8. Amortization 5,379.897 (3.039) 5.376.858 5.376.858 I
:so laws Other Than lemme is 087 15087 18 087
31 Properly Taxes 603.667 (36,970) 566 697 62.658 629.353
32 Inccma Tax (143 435) 51 .412 (92.023) 1.287.339 1.195.317
33 Customer Dsposit lntorast 27.550 27.550 27 550
34 Total Operating Expenses s 14,815 47/ S [21(5,6B0) s 14,599. /47 s 1,427,855 s 16,027 612
35 Operating Income s 1.335 584 s 216.880 s 1.552.264 s 3.888.728 s 6.440.989
36 Olhor Income (Exp mu)
37 Interest and Dividend Income
38 AFUDC Income 263 107 263.107 253,107
Misusaltaneous Non-Utility Expenses 12.871 12.871 12.871
390
Interest Expense (1.824,548) 69.452 (1.755.096) (1.755.096)
41 Non Utility Income
42
43 Total Other Income (Expense) s (1,558 669) s 69,452 s l1.489117) . s (1.489117}
44 Net Profit (Loss) s 1222.985) .s 286.132 s 83.146 as 3.888,125 s 3.951 .872
45
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DOCKET NO. W-0I 427A-25-0126. ET AL.
Llberty Utllltles (Litchfield Park Water a Sewer) Corp. Sewer DMslon Exhlbli
Test Year Ended December 31, 2024 Schedule C2
Aniuszmems lo Revenues and Expenses Page 1
Witness: Bourassa
Une 6S!II8!£€EI§.3lB&_V§I1s»!§5.§N$1E2SI2§n§§§
_1 z § 4_ Q Q sunlx>\al
1
2 Depreciotun properly ConlraeWal Svgs. Wales Cuslonnar
3 & Amortizarkrn Tax's Mgmnt EXD Tasting Exp Dapoxsii lnrerest Purchase Power
4 Revenues
5
s Expenses (3,039) (36,970) (209,714) (17,124) 27,550 (4,627) (243,924)
7
a Operatng
g Income 3.039 36,970 209,714 17.124 (27,550) 4.827 243.924
10
11 Inletest
12 Exoense
13 Other
14 Income 1
15 Expense
1e
17 NM Income 3,039 35,970 209 714 17 124 (27,550) 4,627 243,924
18
19
20 A4i!d3!£D£!ll1.\9_.B9:¢§Dh!§§.§L'slEalz§n!§
21 Z § 3 10 u 12 Subtotal
22 Intentionally Intenllonally lntamlionally lnlemionelly Intentionally
23 Bad Debi LcR Blank Lcfl Blank Len Blank Lcfl Blank Loll Blank
24 Expense
25 Revenues
?6
27 Expenses (27550) (271 ,4742
28
29 OD8f8\lnQ
30 Income 27.550 271 ,474
31
32 Inletest
33 Expense
34 Omar
35 Income I
36 Expense
37
38 Net Income 27,550 271,474
39
40
41 84381_m§l_n|§|98g1£m£2§3i£i2§n8
42 13 14 15 15 MQ
43
44 Interest Income Iniefesi Income
45 h. lam s h. L a m
46 Revenue
47
48 Expenses 51.412 (220.0812
49
50 Operating
51 lncomc (51,412) 220.061
52
53 Interest
54 Expense 69,452 69,457
55 Other
56 Income I
57 Expense
58
59 Net Income 69,452 (51,412) 289,513
DECISION NO. __82134___

ra f/ Funi¥v 1'» miawox £44ldlAAlh.°\l1§fh74510
DOCKET NO. W-01427A-25-0126. ET AL.
Loony Umnl- (|nrm»|¢P.rkwn-f |. Swear) CW Wlnr Dlvtllon Fxhhl
TW year Ended December 31.2o2l Saulomonx Schedule C2
Aduutnuts lo Rsvewu and E 1»lcnles P r e 2
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Quzmuuaanimmn
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um A us . Onglnd .no Fully p\anl 0wa-.1 Pm II ration
_No # 4 Description Cost D 0pf. Plant L U can Rah. lxponu
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2 301 Olpnizalion Cod 2 I .coo (2 L090) 0.m%
3 : o z Frnndm Call o o f
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5 Ana Slruliln an lmvfvvumuruh 31 890,410 31 ammo 1 33% uma um
6 aus Callulmhg and huuundlng R-, 2 sox
7 300 Lain Rivcf nM Other lnlnknn 2 M%
a 307 Was nm Swrsp nu?.917 W.4U,917 J sax 747.M9
9 308 lnl?v.liv1 Gdbiu and Tunny e87%
10 $00 Supply Mans 4238.597 4.299.597 2.00% 84.672
11 316 Fuvar Gcnofaoon Euvlvmonl 532,017 (224,613) 307.204 5 oo'/. 15,880
12 310, 1 Sneer Gouuvnior 2247.645 2247,645 e 67* 140.018
1a 37 1 Eleovic Pumping Eqwman 9.026.881 (739,778) lwonw 7,717,1 as 12.50% %4.642
14 320 Wltu Innntmarz EqunomiM (UI 0 w e 333% (U)
15 320.1 Witnf 1 vo.¢mO=t mum I 1.ow.wu 11.650.120 : J a s 388.275
i s 320.2 enema v Souoon Futon a n n o 804.833) 215.992 10.00% 43.198
11 ago Dust Rssafvon A Slsndppe u 1 1 2 221. 0
i s 330.1 Suuage UHK8 1 1a»s.0ao 0 L 136,030 222% 25,220
19 3302 Pnnuru Tank: 490,054 1415,143) 3,911 s my 196
20 : $ 1 Tuna. ana DrU Mans 53,004,770 53,004,770 2.00% 1.oeo.oes
21 353 Suvluu 7 6 9 6 . 1 u 7.696.154 333* 252.942
22 334 nu.mu 11 403 885 (1 snare; 8.527.090 a was. 793.601
23 : a s Hyarsriis 3.979.930 3 979.630 zoos 79.593
24 335 Bndsilcw Pnvanhn Dnvkal 101,427 (30.107) 83,040 s.e7./~ 4,205
25 339 (Mus: PUre avud Mac. Equip 505.541 (250,531) 746,010 6 ans n u m
as : t o Olfu Fvmihu and Future. 1sa.s7s ($50140) 117.826 667% 7.880
27 540.1 Commnul and Sdtwave 14354 (2¢,¢2B) (12214 I zo Qg* (2,455)
98 141 Tmnapnmunn Equqwmnnl 1 os5,nan (7/l;nn) 7ae,2sa 20 in* 47,652
29 341. 1 TuuupnWlion Equqxmmvl Go( Carla 57.707 52.707 7 ass 4 aaa
so 342 Slums Equipmsrll 37.143 37.143 4 W% 1.480
31 343 Tort and Wnt Fuuklnnnt 148.131 148,131 500°/o 7,407
az 344 lnhnlniovy Emipmom 15,637 (6.8039 t\.1J4 to.ooas o n
33 345 Power Omraaoc Equpmem 18,956 18.956 5 ones 948
34 a la Comnrunicalons Equipmsni 1 006,994 1102.504) \.501,430 10.00% 150,443
35 347 Mscolanaous Equlpmorl s.0a1 5.081 10,0096 500
36 347.1 Mlsnalsnsous Eqdpmerl CNG 488,499 48.499 a sax. 15.601
37 u s (Mor Tumble Punt 1a0.4a2 l\30,462) 1000*
38 SUBTOYAL s 109,013.231 s (e,arr.azol s (569969) s 19,166,442 s 5.982.388
to
40
11 sos Lauri and Lam Ftghls s 26.080 s <26.0e0> s 0.001
12 non Bhuduln and umpmvamamn 177307.7?4 940.325 940.326 2.6G$ 21,072
43 m a Oleo Furm\\- and Furhwn 219,955 219,955 s ans 74,611
44 940.1 Cumpuvpm .M Sdlunrn 1 5ll5,IH 9 1 .505,31 B 20.001 301,064
45 940.2 Cusinmei re 5.805.809 s.sas.cos 5.00% 2s4.2ao
pa ala Puww Goncvuuun r un we a.ooss so
47 see Power Opcuiwa EquyamuM 916,518 116.519 s out sis
48 mnu s s s msmmn s 18188375 s s572n7
40
so N1nAmulL &
51 smucuc rulyAm¢=nu»a nescmc Anion. Rate
52 Lau Amndlmliun of Caluihulunl
i n 303 Loud and um Rsghhs s 228,085 (229,085) o 00%
54 301 Slmr.\lrr.s and lrnpmvemcnta s 609,931 609.937 3.33% (?0,81 I )
55 307 Wels :md Springs s $975,724 a 975.724 J :ms Q90 892)
50 309 Raw Waler Supply Mail s 1487,083 1 467 063 2 aces (29 341)
57 511 Einar.: Pumping Eq1*1mll\l s ansnsn s (40572) 654,518 125994 (106,a15)
so SN water mamma-n Equgamam s 1.526.791 1,528,791 a :sax (50,842)
so 390 Dusiiauiun Ruswov lid Sllndpipss s 581,175 581,175 2.22% (12,902)
on $31 Tan. Ind Dal Mans x 82,470.87 s z uona7 2 oosr. (849,414)
81 ala Solvlcos s 1.063447 1.853.447 3.33% (81,720)
ez a n Mswu s 4a,1W s (4 L899) l.2o7 s was cwsa
63 385 Hwema ss 1,291.1W 1297493 200% (26,944)
64 346 Commnicsions eqiupmm 133887 133,887 m 00% (1 nav)
56 339 Ohorplan\.44 may. hwy. 19,750 13,750 567* l i m
so s ao.ow.ao4 s 49185301 s 49.715288 s (I 270.574)
ez
so Amo¢\IznonolExcnsDe4.Ineomo7a1rosanal¥C
so s
70
71 Nno¢1lz.lonolEADrr 1.505.147 3599g* 75.145
72 s /5145
1a Total Dnpndalinn Expense s 5,376 Asa
74
75 Adjusted Tail Yolf Dupmuallun Elntlrllv 5.379891
18
77 nrunsa (dnunnse) is Depwalntnn Expense (3,039)
78
79 Adpumam no Rcvorwus and lm Expnnunn s :Manx
go
$1 mamnsnu~gsnauar
B2 B2. page a
DECISION NO. _ 8 2 1 3 4 _ _

Docuslgn Envelope ID: ouzsov069954965A/t0033001a7c2A01 B
DOCKET NO. W-0 I427A-25-0126. ET AL.
PUberty Utllltles (Lltchtlold Park Water a. Sewer) Corp. - Water Dlvlslon Exhibit
Test Yea' Ended Do:wmber 31, 2024 SetUemenl ScheduW C-2
Adjustmentto Revenues and Expenses Page 3
Adjustment Number 2 Witness. Bourassa
Property Taxes
Settlement Settlement
Line Test Year Company
fig* DE§§BlEllS2N a m w m a Bammmernstzd
1 Company Adjusted Test Year Revenues s 16,152.011 s 16,152.011
2 Weight Factor 2 2
3 Subtotal (Line 1 ' Lhe 2) 32.304.021 32,304.021
4 Company Recommended Revenue 16,152.011 21 ,468,602
5 Subtotal (Line 4 + Line 5) 48,456,032 53,772,623
6 Nuvnber uf Years 3 3
7 Three Yea Average (Line 5/ Line 6) 16,152,011 17,924,208
B Department of Revenue Multipl or 2 2
9 Revenue Base Value (Line 7 ' Line 8) 32,304,021 35,848,415
10 Plus: 10% of CWIP (internirmnally excluded)
11 Less: Net Book Value of Lloenee<1 Vehicles 24b.41 b 246,416
12 Full Cash Value (Line 9 + Line 10 Line 11) 32,057,605 35,601,999
13 Assessment Ratio 15.5% 15.5%
14 Assessment Value (Line 12 ' Llnc 13) 4,968,829 5,518,310
15 Composite Property Tax Rate Obtained from ADOR 11.404832 11.4m8%
16 Test Year Adjusted Properly Tax Expense (Line 14 ' L ne 15) s 566.697 s 629.353
17 Tax on Parcels
18 Total Properly Taxes (Lina 18 + Line 7) s 566.897
19 Test Year Property Taxes s 603,667
20 Adjustment to Test Year Properly Taxes (Line 18 - Une 19) s 36,970
21
22 Properly Tax on Company Recommended Revenue (Une 16 + Line 17) s 629.353
23 Company Test Year Adjusted Property Tax Expense (Line 18) s 566,697
24 lnaease in Property Tax Due to Increase in Revenue Requirement s 62,658
25
26 Increase in Property Tax Duc to Increase In Revenue Requirement (Line 24) s 62.656
27 Increase in Revenue Requirement s 5.316.591
28 Increase in Property Tax Per Dollar Increase in Revenue (Line 26 I Line 27) 1.17850%
29
30
31
32
33
04
35
36
37
38
39
40
l
DlClSI()N no._§2134 _
i

DocusbnEwcopc ID; DO T2507088954'J6BAADD380097D2AD IB
DOCKET NO. W-0I 427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water a. Sewer) Corp. Water Division
Exhibit
7 est Year anded April 30, 2023 Settlement Schedule C2
Adjustment to Revenues and Expenses Page 4
Adjustment Number a Witness: Bouressa
§QNlrl£2lil.$£D¢!9§S=.l=éinB9£M£t3
Lmn
NQ.
1
2 Settlement Contmchml Stuvirxas Management s 4.344 125
3
4 Adjusted TY Contractual Services - Management s 4.553 839
5
6 Increase (decrease) In Contracual Services . Management s (209 714)
7
8
9
10
11 Rrrfersnon
12 Testimony
13 Wcrk Papers
14
15
16
17
18
19
20
21
22
23
?4
25
Dr;clslon no._ 82134

Docusbn Erwdonc ID: D4125070aaos4oesmaoaaona7nz/ua18
I DOCKET NO. W-0I427A-25-0126. ET AL.
I Liberty Utilities (Litchfield Park Water & Sewer) Corp. Water Dlwslon Exhibit
7 as Year Ended December 31, 2024 Settlement Schedule C2
Adjustment to Revenues and Expenses Page 5
l
I Adjustment Number 4 Witness: Bouressa
I'!i.I§LI§§llEll
Lina
b e
1
2
3
4 Settlement Contractual Services - Testing s 78,015
5
6 Adjusted TY Contractual Services Testing 58.891
7
a Increase (decrease) in Conlracual Suwices Management s (17 1241
9
10
11
12
1 3
14 SUPPORTING SCHEDULES
1 5 Work papers
1 6
17
18
19
2 0
21
2 2
2 3
?4
25
26
27
2 8
2 9
30
31
3 2
33
34
3 5
36
37
I
DECISION NO. 82134

Doculbn Ewclopc ID D412507088954'3€BAMJD330097B2ADIB
DOCKET NO. W-01427A-25-01 Z6. ET AL.
Ubcrty Utilities (Litchfield Park Water & Sewer) Corp. Water Division Exhibit
Tas! Year Ended December 31, 2024 Settiemenl Sdmedule C2
Ad,us:ment to Revenues and Expenses Page 6
Adjustment Number s Witness: Bouresse
Q&MMLME§MMM§1
Lmn
0 2
1
2 Settlement Cuskamer Interest s 27 550
3
4 Ad}usted Test Year Customer Deposit Interest
5
6 Increase (decrease) in Contracual Services Management is 27,550
7
8
9
10
11
12
1 3
14
1 5
1 6
17
1 8
1 9 P RTI H
20 Work papers
21
2 2
2 3
24
i
DECISION NO. __§2134___

Docushl E'rcopc Dt o<r2so1oenns4seamoo 330097D2AD\8
DOCKET no. W-01427A-25-0126. ET AL.
Liberty umittcs (Litchfield Park Water a Sewer) Corp. Water Division Exhibit
7851 Year Ended December 31. 2024 SettememSchedule C2
Adjustment to Revenues and Expenses Page 7
Adjustment Number 6 Witness: Bouresse
&4mnaa.E.Q:a¢§1
Luna
M
1
2 Settlement Purchase Power s 11325201
3
4 Adjusted Test Year Purchase Power 1 628448
5
G Increase (decrease) in Purchase Power is 11 .245l
7
8
g
10
11
12 n m r m a
13 Testimony
14 WnMnamrs
15
16
17
DECISION no. __82134___

Docuvu E'lUOflC ID: 04125070888549€8AAID saoowcznzls
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty ummcs (Litchfield Park Water & Sewer) Corp. Water Division Elhibll
Test Year Ended December 31, 2024 Sellemenl Schedule C2
Adjustment to Revenues and Expenses Page 8
Adjustment Number 7 Witness: Bourasse
Bi1.l2§l2LE2$£&D§£
Bad Dehu Proposed
Line Bnlaenun :mm B!!! 889
No.
1 Bill D091 Rate 2022 $ 14,880,083 s (7,077) 0.048%
2 Bad Dem Rats 2023 s 15,418.182 s 325.508 2.112%
3 BBC Dem Rate 2024 s 16.043185 s 124.402 0.775%
4
5 Average of three years of bad deb: expense rate 0.946% 0 M6%
6
7 Ad used TY Proposed
8
9 Raverues s 16.152.011 s 21 .468,602
10
11 Cumpulai Bud Dw1 Fxwrwe s 157874 $ 203,194
12
13
14 Computed Bad Deb! Expense s "52 874
15 les! year Bar Debt Expense 152 874
16 Change in Bad Debt Expense s 0
17
18 Bar Debt Expense on Company recommended revenue s 203.194
19 Company Test Year Adjusted Bad Debt Expense s 152,874
20 Sellleamenl Adluslmenl s 127,550)
21 Increase in Bad Debt due to Increase in Revenue Requirement _ L 77,870_
7?
23 Incease in Bad Deb! Expense Due to Increase In Revenue Requirement s 77,870
24 Increase in Revenue Requirement s 5.316.591
25 Incroasc In Bad Deb( Expense pcf Dollar Increase In Revenue 1.4e46e%
DECISION NO. 82134

Docukn Efvc:opc IO: D412507340054968AAD0330097C2ADIB
DOCKET NO. W-0 1427A-25-0126. ET AL.
Llbcrty Utilities (LitchMId Park Waler 8\ Sewer) Corp. Waler Division Exhibit
Iesl Year anded April 30, 2023 Selliemenl Schedule 02
AdJustment to Revenues and Expenses Page 9
Adjustment Number 8 Witness: Bouresse
msnmmnanmnalen
Line
MQ
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
70
i
i
1
i
1
i
Dl*l(lSl()N NO. 82134

Docusign Envelope ID: D4125D706995-496B 0D33009702AD1 B
DOCKET no. W-01427A-25-0126. ET AL.
k Water & Sewer) Corp. Water Division Exhibit
Test Year Ended April 30, 2023 Settlement Schedule C-2
Adjustment to Revenues and Expenses Page 10
Rate Case Expense Surcharge Witness: Bourassa
Rate Case Expense Surcharqe
Line
M
1
2 Remove TY Rate Case expense s
3
4 Adjustment to Revenue and/or Expense s
5
6
7 Proposed Rate Case Expense Surcharqe
8
9 Estimated Rate Case Expense $ 172,000
10
11 Estimated Amortization Period in Years 3
12
13 Annual Rate Case Expense $ 57,333
14
15 YE number of customers 24,205
16
17 Monthly Surcharge s 0.20
18
19
20
21
22 Reference
23 Testimony
24
25
DECISION no. 82134
I
1

Docusign Envelope ID; D4125070-6995-496BMOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Water Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule C-2
Adjustment to Revenues and Expenses Page 14
Adjustment Number 13 Witness: Bourassa
Interest Synchronization
Line
M
1
2
3
4 Fair Value Rate Base s 70,007,480
5 Weighted Cost of Debt 2.51%
6 Interest Expense s 1,755,096
7
8 Test Year Interest Expense s 1,824,548
g
10 Increase (decrease) in Interest Expense (69,452)
11
12
13
14 Adjustment to Revenue and/or Expense s 69,452
15
16
17 l6£§i9DI§£1.Q9§l..tiL&ht_Q9m2uI§liQn
18 Ersz.Eszuna.Q§sznaLmiQum Weighted
19 Bgrwi 923 9581
20 Debt 46.00% 5.45% 2.51%
21 Equity 54.00% 9.75% 5.27%
22 Total 100 00% 7.77%
23
24
25
26
27
28
29
30
j
i
Dliclsion no. 82134

3 Q:0817n arm 09. ID; U4 12597909954908A8003.11097C2AD1B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water 8 Sewer) Corp. - Water Division EXNbi1
Test Year Cnced December 31. 2024 Settlement Schedule C2
Adjustment to Revenues anrtlor Expenses Page 15
Adjustment Number 14 Witness Bourasaa
Line
N9.
1 mmmelaai
2 Test Year Test Your
3 at Present Rates at Proposed Rates
4 Computed score Tax s 492.023) s 1195.317
5 Test Year Income tax Expense (143.435) (92,023)
G Adjustment to Income Tax Expense is 51,412 s 1.287 339
7
8
g
10
11
1?
, P H . . .
13
14 C-3,page2
15
16
17
18
19
20
21
22
23
24
25
27
28
29
30
DECISION NO. 82134

uwuuvrvuomvofuoo ruzww
DOCKET NO. W-01427A-25-0126. ET AL.
Ubeny UMM- (LINMMG Yuri Wolf I Sand Corp. Wl\.f Division ExWbi
Inn V01 Elldud Do-mba 51. 2024 serums GtiltWb c>a
Page 2
Wnmml Baur-a
anon ncveuue couvinalou ru:1oR
Ln (A) IB) lcv (Or [Fl IF]
an nnmnm
N$!nnuiQmnl mn£uulm£nm:
v Human \0a.0011n1n
2 Uudlmmn Fw (Ln 11) | m o m
a Ihvlmus 111 K 2) an s s onx
l cnrnhhunF1aunlnnaam¢lno»-Tululrulwlyt.nmn(lJnc28) 2 5 l a w s
s aunun (II U) 1 a . u a 2 %
6 lvvunw Common fudl (L1 ILS) 1.357101
QWMMHMMMUII MIHNL
1 u n , v oonnunss
B CMM Flmnl .no Sum. Tal RM. (UT) n n 7 m x
D UmMm»Cf.nhnad\nmm.T»lhl\(L1L8 ) 75 1290*
10 lhuildlva Ran 1.4mr».
\\ lIKulidlu¢Fl1Dl(lDllD) 1 10U'*
awmunua mLnnm
1? Ol1oMiq 1 NJ lduw Ylusl (kkuln T-1H. Vmnrll I n a n e
13 Annum Sid. In mm. Tll R.l1 4.nouns
14 Ftdilll Yul bf lmnln. (L12 . L 13) M.1DUGh
16 AMIIW F.4»ld limn Y.: R.\l (I.A5 Cd F) Z1 00061
is Elludvu rnanm IHGIIH T.1 R.h (LN L\5) II QTIUA
11 Cnmhiid F.¢r1I.ndSvl.lnunu T.: Rlh (L13 ¢L\l) zunms
GIBIWLIINKML WIMLHLIWI
1a any m a m u u i
19 CnrltlIdf ll.ndS1loII\alnlTu l..h(L11) : A n n
zo G-llmlCumhn.dlnmml\1uRnh(L15Lt¢] ra. 1zlas s
21 Huuplnyfuilau 1. 1115*
22 Elf.avaHng.ny1n F10nr(u01.21) oauws
n Unwind Fudlul and Stl.. Inns to md Fmguvly I.. RI. (l.l1~l.Z) znews
24 Raqun40numunglnemnc(lram~1l s s.uo.ouo
25 AalullndTu1vnOpavllwlnmmu(lD¢)('1wnA1) s 1.552.294
25 Mqunaulau1ennouaurul1enmn¢Lz4Lz5J s : . uas . 72o
27 IncomeTuwuonmeumnlalldannuvsmqcol.(HL52) ss 138317
za lncomNauuoon Te.y-Revsmn(caL (C).L52) (92023)
a Roundlnaunaniavunuewpvu~na¢lorv\eamatmm(L27125) s 1191,339
so Rocanvnenneokevofuohuqlnmern s 21 468 we
81 lhmlIewHeR.o(Lns10) 1 mrs
u unenammueamonuewnneun-manaeansvun:(i1sml s :14,u2
75 Aupumv-vaumealamlainmfua s 125124
M Reaunalnounconnavnmuoplwauorlnuenleoueixp. s 19.118
M P\ npav t y Tnv AU »R neam m endn4R ewf w s cams;
as P1upoayT o<on1oo!ywRevunl e s see W7
37 lnanuolnFluponyTuDuomlnaauohMwnua(LiL30) s use
3 Talalilq1llldlnulullnRlw\»ll2G~L29*L3T)
1 : 5 8 6 0
c L i
Iilnin-Illulillninil _ _ _ _ _ L
a l . -
QiunmMlnmlhn
8 v.1u. . 1 . 1 1 J . 1 1 : u r l . 1,
no Gpnndig E luvnm &:du4ng num. has and EADIY -nl\z.U1 \4,1lG.l14 14. 785914 1l.g07.l20 u.l01 uc
41 synmunula liunn no 1.766.806 1.1us.aao u56,oa8 I 156 NO
42 Adan. Tunhlo Imam. (LI LID UI] 370,0001 s lo. uool . . .oar AMG 067
as Mm. so. Ehui- Umuml T- Ml! _ u n c g u t u u c o s s 4 coos = nuncss
M Alan. Imam. am (U2 l LAS) a m ! L
4 5 nun r..l nl » Ira am 4l .A2 LM ) I II 1 z : . I 1 m
as Fns-I rmnlnnTl Rub _ :ams ! unc!
41 F.¢.d vmnn To ms-ual iiiii§3v"" s sum . i m
41 Camblld Fndll lud Min lnmme Tl. (LM 4 LA?) [ _ Quran z s l z :
an Qm§u£2wo~ou1»r¢¢»~aI»wn~~r~-owned 1DI.u7ca,w.l.41Iicd.lo1 uscu w.usl :wanna
50 xuaslslualanwnw-~l~ Fidbvd UIDOIHO 1u Rlli [Cot la. L". ca lBJ U71 I lou. an UP . Of. (BL L41 neoc ons
as JMI.EBAal=lcel»~ navy um-na TU. an lea IF) uv of :co Ur)/lcd. (r|.u5 CaL ICI. us; :vacuum
Wlor
az M _ s m.w1Aw
B wap-¢A~=g»c¢uon1u1 :mum
54 Synduul\u¢nunulLnxn.5ll _ 1 4111921
82134
DECISION NO.

Docuaign Curve cpe ID: C4125D70-69954960AAOD330D97D2AD1 B
DOCKET NO. W-0I427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Water Division Exhibit
Test Year Fnded December 31 , 7074 Mtttement Schedule C-3
Computation of Gross Revenue Conversion Factor Page 1
W itness: Bourassa
Perc entage
up
lncrcmcntat
Line Gros s
M L Description Revenues
1 Combined Federal and State Effective Income Tax Rate 24.871%
2
3 Uncollectibte Factor 1. 100%
4
5 Property Tax Factor 0. 885%
6
7
8 Tulat Tax Perc entage 26.857%
g
10 Operating Income % = 100% - Tax Percentage 73. 143%
11
1 2
13
14
1 5 1 = Gross Revenue Conversion Facts
1 6 Operating Inc om e % 1.3672
17
1 8
19
2 0
2 1
22
2 3
2 4
2 5
2 6
2 7 SUPPORTING SCHEDULES: RECAP SCHEDULES:
7 8 C-3, page 7 A- 1
2 9
3 0
3 1
32
33
34
3 5
36
37
3 8
3 9
40
4 1
42
DECISION no. 82134

._i< ,_oo
1- 3 s v.v cc 3 a= ° a=
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Lu6NoI o L ¢ N 10 v~ 1-N
w m E co
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UJCDD.) '553inE:
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>¢UOD ofNQoQ o.
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:on .zDu2
:E Q g2I 2 § 32N 39 m
8 r~N Q w I
s 3 i
EN
pa'. 3? 39
v 8__ §:»N3 m*.
338 m
"6
88° 2 Q; 8 32 •o ~e
-Ȥ 'G 3 w vP
£80 z 8 Ein »?-' E 3 as q8
3"6 § W 1-
3 m 0.
E39 Lu] E 8
'u 5 co m E : 8 g
.:• §>(0 3 2 in n
rn- 8 3c 3 mQN m
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5'3 3
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8a 3 'T6 . .¢ 8so .g
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Doa.slgn Envelope ID: D4 l25D7J6995-496BAAOD330D97D2AD 1 B
DOCKET NO. W-0I 427A-25-0126. ET Al..
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Water Dlvlslon Exhibit
Tcst Year Ended December 31, 2024 Settlement Sdwcdulc D 3
Cost of Pre'errod Stock Page 1
Witness: Bourassa
Line
No.
1 End of 1 est Year End of Prolected Year
2
3 Description Shares Dividend Shares Dividend
4 of Issue Outstanding Ammnt Requirement Outstanding Amount Requirement
5
6
7 NOT APPLICABLE, NO PREFERRED STOCK ISSUED OR OUTSTANDING
8
9
10
11
12
13
14
15
16
17
18
19
20
21 §ue.eQan_ue_ss;u£nut5s; mxnauumuga
22 E1 D 1
23
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26
27
28
29
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31
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34
35
36
37
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40
DECISION NO. 82134

Docus in Evwrlopo ID: D4125070099549GBAOD330097C2AD1 B
DOCKET NO. W-0I427A-25-0126. ET AL.
Liberty Utilities (Lltchlield Park Water a Sowor) Corp. Walor Division E)d11blt
Test Year Ended December 31, 2024 SulUemcanl Schedule D4
Cost of Common Equity Pngc 1
Witness Bouressa
Line
.
1
2 The Company is proposing a cost of common equity of 9.75% .
3
4
5
6
7
8
g
10
11
1?
13
14
w
16
17 SUPPORTING SCHFDULFS: RFCAP SCHFDULFSy
18 E-1 D 1
19 D-4.1 to D-4.16
20
i
D1;clslon NO. 82134

Docusign Envelope ID; D41250706995496BAAOD330D97D2AD1 B
DOCKET NO. W-()l427A-25-()I26. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. Water Division Exhibll
Test Year Ended December at, 2024 Setttlomem Schedule H1
Revenue Summary Page 1
Witness: Bourusa
Percent Percent
of of
Present Proposed
Lina Motor Present Proposed Dollar Parccnt Water Water
up. 2lnch S o ! Quell annum Blzlinutl Q h l l wl Qhnnsu Bliimni Blnnnlt
1 3/4 ln<:1 Residential s 4.390.954 S 5,822,369 s 1,431 ,415 32.60% 27.19% 27 , 12%
2 1 Inch Resndenhal 4.263,940 5.593.100 1,329,160 31 17% 26.40% 2605%
3 1.5 Ir\ch Residential 51,972 70,795 18,822 3 8 2 2 * 0.32% 0.33%
4 Residential 2,813 3,514 700 24 89% 0.02% 0.02%
5
6 Subtotal 8,709,679 11 ,489,777 2,780,098 31 92% 53 92% 53.52%
1
8 3/4 10 Inch Indl Commercial s 15,102 s 20,448 s 5.346 3540% 0.09% 0.10%
9 1 Inch Commercial 39.324 52.791 13,467 34.24% 0.24% 0.25%
10 1.5 may Commercial 159.048 214,114 55.066 34.62% 0.98% 1 .00%
11 2 Inch Commercial 1 .230.956 1.650.328 419,372 34 07% 7.62% 7.69%
12 3 Inch Commercial 27.046 36,633 9.587 35.44% 0.17% 0 17%
13 4 Inch Commercnd 459.328 617,724 158.397 34.48% 2.84% 2.88%
14 6 Inch Commercial 148,699 200,754 52,055 35.01% 0.92% 0.94%
15 8 Inch Commercual 13,341 16,390 3,049 22 86% 0 08% 0 08%
16 Commercial 36,131 44,141 8.011 22.17% 0.22% 0.21%
17
18 Sublold s 2.128.975 s 2.853.324 s 724,349 34.02% 13.18% 13.29%
19
20
21 3/4 Ir1d1 lmgauon s 90,256 s 122,145 s 31.889 35.33% 0.56% 0.57%
22 1 Inch Irrigation 499.305 676,753 177,448 35.54% 3.09% 3.15%
23 1.5 lndl Irrigaiion 783,937 1,065,705 281,768 35.94% 4 85% 4.96%
24 2lnch Inigauon 2,288,550 3.102.503 813,953 35.57% 14 17% 14.45%
25 4 Inch urngauon 249,512 335.530 86,018 34.47% 1.54% 1 .56%
26 8 Inch Irrigation 85,020 115.066 30,046 35.34% 0.53% 0.54%
27
28 Subbld s 3.996.581 s 5.417,702 s 1,421,122 3558% 24 74% 25.24%
29
30 1 Inch MF s 2.026 s 2,400 s 374 18.48% 001% 0 01%
31 1 5lnd1 n r 72.545 95,182 22,637 31 .20% 0 45% 0.44% 1
32 2 Inch MF 571 .767 772,326 200,559 35.08% 3.54% 3.60%
33 Scorch NF 119.811 161,510 41 ,699 34.80% 0 74% 0 75%
34 4 lmh MF 43.578 59,369 15,792 36.24% 0.27% 0.28%
35 6 Inch MF 27.612 37,021 9,409 34 07% 0 17% 0 17%
36 submenu s 837.339 s 1.127.809 s 290,470 34 69% 5.18% 5.25%
37
38 5/8x314 Inch Firm s 25,813 s 30.833 s 5.020 1945% 0.16% 0.14%
39 3/4 lnd\ ran 22,440 26,727 4.287 19.10% 0.14% 0.12%
40 1 Inch Firm 378 449 71 18.79% 0.00% 0.00%
41 2 Inch Fire 1,204 1 ,428 224 18.58% 0.01% 0.01%
42 Hydlld 92,813 157.473 64.860 70.03% 0.57% 0.73%
43
44 a Inch LUKG AFB (Bulk) 113.943 131,034 17,092 15.00% 0.71% 061%
45 6 Inch VUI (By*) 755 18 58%
46 Told Revenues Below Anmallzahon ~w§%=**§- . 4 1. 4 4 - - , 553IT---3§§Iq"--§5§pg"""tW§p{ . 0.03% 0.02% .
47
82134
DECISION NO.

Docusign Envelope ID: D4125070-6995-496BAAOD33009702AD1B
DOCKETNO. W-01427A-25-0126. ETAL.
Llberty Utilltiee (Litchfield Park Weber 8 Sewer) Corp. Water Dlvlelon Exhnbll
Test Year Ended December 31. 2024 Setttlemenl Schedule in
Revenue Summary Page 2
Witness:Bourassa
Revenue Annuelizetaon Addltionel
Gallons to
Meter Present Proposed Dollar Percent Addltional be Pumped
N9 5 4 9 la s Revenues Revenues Charge Chl.ng¢ Bill; (In 1,oooi;l
1 5/8x314 Inch Resndenlial s s 0.00%
2 3/4 unch Residential 8.283 10,771 2,488 30 03% 403 2.485
3 1 Inch Resmdenual 1.650 942 (708) 42.90% 122 (597)
4 1.5 Indi Ressdenual (249) (328) (79) 0 00% 2 (92)
5 2 men Resodenusl 0 00%
6 4 Inch Residential 0.00%
7
a Subtotal 'I. 9.684 s 11.385 1.701 17.57% 527 1,796
9
10 5I8x3I4 Inch Commercial s s 0 00%
11 3/4 lrld\ Commercial 379 536 157 41 .38% 11 114
12 1 Inch Commercial 1,718 2,386 668 38.87% 29 434
13 1.5 1 non Commercial 1,157 1 ,652 495 42.78% 10 328
14 2 Inch Commercial 3,645 5,105 1 ,459 40 04% 20 943
15 3 Inch Commercial 122 198 76 62.37% 66
16 4 Inch CommercW 3,116 4,190 1,074 34.46% 954
17 6 Inch Commercial 0.00%
18 8 lrlch Commerce 0.00%
19 10 Inch Commercial 1,732 2.181 449 25 91% 1 157
20
21 Subtotal s 11,869 s 16247 7,780 65.55% 71 2.997
22
23
24 5/8x3/4 Inch lrrsgar»on s s s 0 00%
25 3/4 Inch Irrigation 402 569 167 41 .5695 11 123
26 1 Inch Irrigniion 1,759 2,450 691 39.30% 16 524
27 1 s Inch Irrigation (4.604) (6223) (1 .629) 0.00% (4) (1 ,402)
28 2 Irich lrrigalion (883) (1 .008) (125) 0.00% 12 (325)
29 4 Inch Irrigation 9,654 13,290 3,636 37.66% a 2,786
30 6 Inch Irrigation (2,283) (3,156) (873) 0 (1) (664)
31 Sublold s 4.044 s 5,911 1.867 48.16% 42 1.042
32
33 1 Inch MF s (0) s (0) s (0) 0.00% (0)
34 1.5 Irld\ MF 2,322 3,112 790 34 go* 24 443
35 2 Inch MF 3.934 5,499 1,565 39.78% 14 1,140
36 3 Inch MF 119 160 41 34.46% 35
37 4 Inch MF (1,915) (2.631) (716) 0 00% (1) (580)
38 6 Inch W 0.00%
39 sumouu s 4.451 s 8,140 s 1 .880 37.88% 37 1 ,040
40
41 5/8x3/4 Inch Fine s 62t s 744 124 19.91% DB 10
42 3/4 Inch Fire 736 876 140 19.08% 58 5
43 1 Inch Fire 0.00%
44 2 Inch Firm 0.00%
45
46
i
47
48
49 Total Revenue Annuallzltion s 31.414 s 41 ,304 s 13.292 42.31% 877 8.875
I
82134_
DECISION NO.

Docusign Envelope ID: D41250706995496BAAOD330D97 D2AD 1 B
DOCKET NO. W-0 1427A-25-0126. ET AL.
Llberty Udiliin (Lltehfkld Park Wlt.r G Sewer) Corp. Wlhr Division Emanu
Test You Ended December 31, 2024 Semiemem Schedule H1
Revenue Summary Page 3
Wlul8ss: Bourassa
Percent Percent
of of
Present Proposed
Lino Present Proposed Dollar Percent Water Water
MQ, R v n M n Qhznn han Q M M van
1 suoww Metered Revenues s 15,933,028 s 21,241,375 s 5,308,347 33.32% 98.64% 98.94%
2 0.00% 0 00% 0.W%
3 smunal Rania AmzalIzatuon 31,414 41,304 9,890 31 .48% 0 19% 0.19%
4 Total Metered Revenues s 15,964,442 s 21,282,678 s 5,318,237 33.31% 98 84% 99 13%
5
s Msc Revenues s 184,885 s 184,885 0 00% 114% 0.86%
7 Reconciling Amos to GL 2,684 1 ,039 (1.645] 612994 0.02% 0 00%
8 Total Water Revenues 16 152 010 21 468602 5 316 592 3292% 100.00% 10000%
9
10
11
12 l
13
14
15 Recondlatuon of Revenues i
16 Metered Revenues Per GL s 15.858.901
17 Revenue Accurel Fix (45,000) 1
18 Unboiled Revenues Wigwam lrrigatnon 121 ,710
19
i
20 Adpsled Revenues per GL s 15,935.611 1
21
22 Revenues before annualszataon s 15933028
23
24 Difference s 2.583
25
26 v. Drfferanca 0.02%
27
28 Tolerance (+I 112% of revenues) s 79,678
29
30
31
32
33
34
35
36
37
38
39
40
41
DECISION NO. 82134

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Docusign Envelope ID: D41250706995496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
lJbeny Utilities (Litchfield Park Water & Sewer) Corp. Water DWlslon Exhibit
Clnnges in Representative Rate Schedules Settlemerll Schedule H3
Test Year Ended December 31. 2024 Page 3
Witness: Bourassa
Lire
NL ask h P nt Char s Mn9§eQ£L\§:sss
1 Establishment per A.A.C. R142403(DX1) $20.00 $30.01
2 ReEslablishrnent per A A.C. R 142403(0)(1 ) (D) (b)
3 Reconnection perA.A.C. R142403(D)(1) $50.00 sso.oo
4 Meter Test (if correct) per Role R 142-408(F) $25.00 $30.00
5 Meter Reread (If correct) per Rue R142-408(C) $5.00 $20.00
6 Fire Hydrant Meter Relocation $50.00 $50.00
7 Fire Hydrarl Meter Repair A1 Cost At Cost
8 NSF Check per A A.C, R142-408(E)(1) $25 (a) $25.00 (a)
9 Deferred Payment, Per Month 1.5% 1.5%
10 Late Charge (C) (c)
11 Service Cats After Hours $40.00 (d) $125(d)
12 AfterHours Service Charge NT NT
13 Deposit Requirements to) to)
14 Deposit Interest per A.A.C. R 142403(8) 6.00% 6.00%
15 Water HookUp tees (f) (f)
16 Failed Final Inspection Fee NT $75.00
17
18
19 (a) Liberty Litchfield Park may charge orly one NSF lee when customers are biled for water and sewer services on one bill.
20 (b) Minimum Charges times rubber of ful months off the system per A A.C. R14-2-403(D)
21 (c) Greater of $5.00 or 1.50% of unpaid balance.
(d) Customer shall be charged for after-hows service cats outside of normal working hours for work perlomwed at the customer's request or convenience.
22
(e) Per ACC Rues R142403(B) Residential two times me average bill by class. Nonresidential two and onehalf times the customers estimated
23 maximum monthly bit.
24 (f) Customers shalt pay the applicable Water HookUp fees per tariff.
25
In add non to the collection of regular rates. the utility will colect from its customers a proportionate stare of any privilege, sales. use, and tranclise tax.
26 Per Commission Rule R142409(D)5.
27
28
29
D1cls1on NO. 82134

Docusign Envelope ID: D41250706995-4965m00330097 D2AD 1 B
DOCKET NO. W-0I427A-25-0126. ET AL.
Liberty Utilities (Litchfield Meterand Park Service Water 84 Line Sewer)Corp. Charges - \\ alter Division Exhibit
TestYear Ifndcd December 3 I. 2024 Settlement Schedule H-3
Page 4
Witness: Bourassa
Linc
NO
I
2 Refundable Meter and Senlce Line Charges
3
4 Present Proposed
5 Present Meter Proposed Mclcr
6 Service Install Total Service Install- Total
7 L inc ation Currcm Linc ation Proposed
R Chflwi her c §b9LH¢ CMLLQ Chart Churgg
9 5/'X x 374 Inch 565.00 158.00 723.00 565.00 l 68.(X) 733.00
I() 3/4 Inch 565.00 260,00 825.00 565.00 "(\0.00 8)5.00
I I I Inch 629.00 321.00 950.00 629.00 32 I .00 950.00
12 I 1/2 Inch 699,00 536.00 l,23s.oo 690,(Kl 536.00 1.235.00
13 2 Inch / Turbine Al Cost Al (.osl Al Al Cost Cost Al Cost A1 Cost Al Cost
14 2 Inch / Compound At Cost Al Cost Al Cost Al Cos! Al Cost AI Cost
15 3 Inch / Turbine Al Cost Al Cost Al Cost Al Cost Al Coal Al Cost
16 3 Inch / Compound At Cost At Cost Al Cost Al Cost AI Cost Al Cost
17 4 Inch / Turhinc Al Cosl Al Cost Al Cost Al Cost Al Cost Al Cosl
18 4 Inch / Compound Al Cost An Cost AI Cost As Cost At (`osl At Cost
19 6 Inch / Turbine Al Cu>l Al Cost Al Cost Al Cost Al Cost AS Cosl
20 6 Inch / Colnpound Al Cns\ Al C`ost Al (osl Al Cost Al Cost AI C0s\
21 8 Inch & Larger Al Cost Al Cost Al Cost At Cos1 Al Cost
22
23
24
25 N/T = No Tariff
26
27
28 Hydmnl Mctcr Deposit* Present Proposed
29 Char Charge
30 3 Inch / Turbine 1,470.00 I ,470.00
3 I 3 Inch / Compound 2165.00 2,265.00
32
33
34
35
36
37
38 ' Shall have a noninterest hearing deposit of the amount indicated , refundable in its entirety upon rctum of
39 the meter in l,-ood condition and payment of the final bill.
i
ii
DECISION NO. 82134

Docusign Envelope ID; D41250706995496BAAOD33009702AD1 B
DOCKET NO. W-0I 427A-25-0126. ET AL.
Wastewater Settlement Schedules
I
I
l
i
t
1
DECISION NO. 82134
l

Docusign Envelope ID: D4125D706995496BAAOD330D97D2AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utlllties (Litchfield Park Water 5 Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule A1
i Computation of Increase In Gross Revenue Page 1
Requirements As Adjusted Witness: Bourassa
Line
M
1 Fair Value Rate Base s 136,328.067
2
3 Adjusted Operating Income s 3.181.348
4
5 Current Rate of Rel um 2.33%
6
7 Required Operating Income s 10,595,434
8
9 Required Rate of Return on Fair Value Rate Base 7.77%
10
11 Operating Income Deficiency s 7,414,085
12
13 Gross Revenue Conversion Factor 1 .3509
14
15 Increase in Gross Revenue
16 Requirement s 10,015,953
17
18 Adjusted Test Year Revenues s 21 .569,086
19 Increase in Gross Revenue Revenue Requirement $ 10,015,953
20 Proposed Revenue Requirement s 31 .585.039
21 % Increase 46.44%
22
23 Customer Present Proposed Dollar Percent
24 Classification Rates Rates Increase Increase
25 Residential s 12,706,853 s 19,586.343 s 6,879,490 54.14%
26 Residential HOA 133 72,191 111.275 39.084 54.14°/o
27 Resvdential HOA 134 72.734 112,112 39,378 54.14%
28 Residential HOA 138 74.905 115,458 40.553 54.14%
29 Residential HOA 160 86.846 133.865 47,018 54.14°/u
30 Residential HOA 520 282,250 435,060 152,810 54.14%
31 Subtotal s 13,295.778 s 20,494.112 s 7,198,334 54.14%
32
33 Mutli Unit Housing s 2,405,004 s 3,707,073 s 1,302,069 54.14%
34
35 Small Commercial s 93,479.383 s 144,089.121 s 50,610 54.14%
36 Measured Service:
37 Regular Domestic s 1,871,984 s 2,999,950 s 1,127,965 60.26%
38 Regular Domestic Influent 2,122,889 3,412,131 1,289,242 60.73%
39 Restaurant, Motels, Grocery, Dry Cleaning 531,541 851,005 319,464 60. 10%
40 Subtotal s 4,526,414 s 7,263,086 s 2,736,671 60.46%
41
42 Wigwam Resort Par Room s 166,795 s 287.105 s 100,310 80. 14%
43 Wigwam Resort Main 19,956 31 ,957 12,001 60.14%
44 Subtotal s 186,750 s 299.062 s 112,312 60. 14%
45
46 Elementary Schools s 81 ,418 s 130,383 s 48,965 60.14%
47 Middle and High Schools 95,787 153.393 57.606 60.14%
48 Community College 24,745 39,627 14.882 60.14%
49 Subtotal s 201 ,950 s 323.402 s 121,453 60.14%
50
51
52 Total Revenues Before Revenues Annualizstion s 20.709.376 s 32.230,824 s 11,521,448 55.63%
53
54 Revenue Annualizalion 135,122 212.830 77,708 57.51%
55 Subtotal s 20.844,497 s 32,443,653 s 11 ,599.156 55.65%
56
57 Effiuenl Revenues s 59.035 s 59.035 0.00%
58 Other Wastewater Revenues 663,170 663. 170 0.00%
59 Reconciling Amount 2,384 (393) (2,777) 116.48%
60 Rounding 0.00%
61 Total of Water Revenues s 21,569,086 s 33.165.465 s 11,596,379 53.78%
62
63
64
65 sum2B1luss_acnenuJ.e§;
66 B1
67 C1
66 C3
69 H1 DECISION no. 82134

Docusign Envelope ID: D4125D70-6995496BAAOD330097D2AD1 B
DOCKETNO. W-0 I427A-25-0126. ETAL.
Liberty Utilities (Litchfield Park Water a Sewer) Corp. - Sewer Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B-1
Summary of Rate Base Page 1
Witness: Bourassa
Line Original Cost Fair Value
M Rate base Rate Base
1
2 Gross Utility Plant in Service s 271,633,701 $ 271 ,633,701
3 Less: Accumulated Depreciation 61,733,724 61,733,724
4
5 Net Utility Plant in Service s 209,899,976 $ 209,899,976
6
7 Less:
8 Advances in Aid of Construction 9,282,824 9,282,824
g
10 Contributions in Aid of Construction 86,270,883 86,270,883
11
12 Accumulated Amortization of CIAC (20.083.978) (20,083.978)
13
14 Customer Meter Deposits
15 Customer Security Deposits
16 Accumulated Deferred Income Tax 1,406,888 1,406,888
17 Excess Accumulated Deferred Income Taxes (EADIT) 1,612,053 1,612,053
18
19 Plus:
20 Sarival Depreciation Deferral Accounting Order 5,204,310 5,204,310
21 Unamortized Finance
22 Charges
23 Prepayments (42,101) (42.101 )
24 Materials and Supplies
25 Cash Working capital (245,449) (245,449)
26
27 Total Rate Base $ 136,328,067 $ 136,328,067
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42 S PP R IN H ES:
43 B2
44 B3
45 B5
46 E-1
47
48
49
50
51
DECISION NO. 83.134

Docusign Envelope ID; D41250706995-496BAAOD33009702AD1 B
DOCKET NO. W-0I427A-25-0126. ET AL.
Liberty Utilitles (Litchfield Park Water a. Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B-2
Original Cost Rate Base Proforma Adjustments Page 1
Witness: Bourassa
Adjusted Adjusted
at at end
Line End of Settlement of
Me lesttser A§ist§!m§al Isstt§§r
1 Gross Utility
2 Plant in Service s 273,971,889 (2,338,189) s 271,633,701
3
4 Loss:
5 Accumulated
6 Depreciation 62,157,853 (424,129) 61,733,724
7
8
g Net Utility Plant
10 in Service s 211,814,036 $ 209.899.976
11
12 Less :
13 Advances in Aid of
14 Construction 11,726,776 (2,443,953) 9,282,824
15
16 Contributions in Aid of
17 Construction Gross 89,687.625 (3,416,742) 86,270,883
18
19 Accumulated Amortization of CIAC (20,279.742) 195,764 (20,083,978)
20
21 Customer Meter Deposits
22 Customer Security Deposits
23 Accumulated Deferred Income Tax 228,048 1,178,840 1,406,888
24 Excess Accumulated Defered Income Taxes (EADIT) 1,612,052 0 1,612,053
25
26
27 Plus:
28 Sarival Depreciation Deferral Accounting Order 5,204,310 5,204.310
29 Unamortized Finance
30 Charges 143.964 (143,964)
31 Prepayments (42,101) (42,101 )
32 Materials and Supplies
33 Working capital (258.291 ) 12.842 (245,449)
34
35
36 Total s 133,887,159 s 136,328,067
37
38
39
40
41
42
43
44
45
46
47 PP RT IN s H REC;AP SCHEDULES:
48 B2, pages 2 B1
49 E1
50
51
52
DECISION NO.
82434

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DOCKET NO. W-01427A-25-0 I 26. ET AL.
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10 84 Fra u manu4l 040103 Anna Inna411 nuns u.ns is
11 IUIIGU-id \m.1a ouuu till umm
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1: 10 c maua¢umu 11,810.96 a is :four
14 us Cm¢»oso-unooav hmmm 1111,0101 11.-.lil ma .Ana Mill 9,111.88
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8 $r1 F\ . ¢lA l 18830 1110.l041 mum 1.41239
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24 an .i-YI! -on 8.0 1.413 no in: 1.42910
31 26 ans 80 OuCouuWC ¥1 ¢unoltm ¢.r11ur ¢mlll: 1107) AM 81 a\.w.as1
21 11 n-ann nasal: sons: nu zz nuns
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as !lua&u»-l I - M
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4: l.lTOTAI. H 2lI.n1.\. I I anus: in mmol; ii 5 U .am-ll 0 I ITl1.Ul I II Lilll a l an I 8.124 In
4:4 sou La-wanna s sr.m l I s as m
41 104 Nmnmanunuu-u l.m.m I.-m1
u 110 Ovnu»run».»-ll.uu 81.14 (45,012) mea
47 mc! Canuln.¢|¢- 1 umm nm 1 a1cz1\ :Aux
41 1402 Cib*Fhl xmns (11.91) ussn
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64 Fil1*l¢v!»vllul\1 .L____nuunL
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o
DECISION no.__2134

Docusign Envelope ID: D41250706995496BAAOD330D97D2AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Llberly Utllltles (Lltchfleld Park Water a Sewer) Corp. Sewer DMslon Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B2
Original Cost Rate Base Proforma Adjustments Page 3.1
Adjustment Number 1 A Witness: Bourassa
Line
M
1 §9m9L\lln..ElBnt
2 111 [2] [3] 141 = l1lx[2l*l3l Direct
3 Llberty Settlement Altocatec Allocated
4 Acct. Original U\iliti8s Original Original Settlement
5 NO. QQBZEQQIDL §&§l i m p ; F l r Q9§! Riga MIMIEILMQI
6 903 Land and Land Rights s 1,364,008 6.656796 30.2279% s 27,446 s 27,446 s
7 904 Structures and Improvements 11 .557,420 <z.ss67% 30.2279% 232.555 232.555
a
g
10
11
12 LLl haQ2!IZ.£l§L\1l§Q2Q1
13
14 903 Land and Land Rights s 58,167 51 .39% 34 5602% s 10.330 10,330 s
15 904 Structures and Improvements 6,320,249 51 .39% 34 5602% 1,122,483 1,122,483
16 940 Off»ce Furniture and Equipment 1 ,781 ,431 5139% 34 5602% 316,384 361,396 (45.012)
17 940. 1 Computers and Software 5,038,773 86.78% 34.560256 1,511,199 1,435,188 76.011
18 940.2 Customer First 28,227,726 86.78% 34.560294 8.465.895 8.482,495 (16,601 )
19 955 Power Generation 5,710 51 .39% 34 5w2% 1,014 1.014
20 995 Power Operated Equipment 943.696 51.39% 34 5602% 167,601 167,601
21
22 Totals
23
24 903 Land and Land Rights s 1 .422,174 s 37,777 37.777 s
25 904 Structures and Improvements 17.877,670 1 .355.038 1.355.038
26 940 Office Fumlture and Equipment 1181,431 316,384 361,396 (45,012)
27 940. 1 Computers and Software 5,038,773 1 .511 ,199 1.435.188 76,011
28 940.2 Customer First 28.227,726 8.465.895 8.482.495 (16.601)
29 955 Power Generation 5,710 1.014 1.014
30 995 Power Operated Equipment 943,696 167.601 167.601
31 997 Miscellaenous Equipment
32 55,297,180 11,854.908 11,840,509 14,399
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47 sue2Qsnus_s§usQul.e a§9Ae§9nmma£a
48 Work 989875 82. page 3
49 Testimony
DECISION no. 82134

Docusign Envelope ID; D4125D706995496BAAOD330D97D2AD1 B
DOCKET NO. W-0 1427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31. 2024 Settlement Schedule B2
Original Cost Rate Base Proforma Adjustments page 3.2
Adjustment Number 1 B Witness: Bourassa
Line
1 p T LY rPl l
2 Adjusted
3 Test Year
4 Acct. Orginal Settlement Settlement
5 o ri lion 990 Adjustment $1
6 106 Construction Completed Not Classified s s s
7 351 Organization
8 352 Franchise
9 353 Land
10 354 Structures & Improvements
11 355 Power Generation
12 355.1 Solar Generation
13 360 Collection Sewer Forced
14 361 Collection Sewers Gravity 274,583 (161 .070) 113,513
15 362 Special Collecting Structures
16 363 Customer Services 41,250 39,492 80,742
17 364 Flow Measuring Devices
18 365 Flow Measuring Installations
19 366 Reuse Services
20 367 Reuse Meters And Installation
21 370 Receiving Wells
22 371 Pumping Equipment 256.437 (170,904) 85.533
23 374 ReuseDistribution Reservoirs
24 375 Reuse Trans. and Dist. System
25 380 Treatment & Disposal Equipment 214,812 (160.519) 54.293
26 380.1 Odor Control GAC
27 381 Plant Sewers 207,553 207,553
28 382 Outfall Sewer Lines
29 389 Other Sewer Plant & Equipment
30 390 Office Furniture & Equipment
31 390.1 Computers and Software
32 391 Transportation Equipment
33 392 Stores Equipment
34 393 Tools, Shop And Garage Equip 13.200 (13,200)
35 394 Laboratory Equip
36 395 Power Operated Equipment
37 396 Communication Equip 160.000 (160,000)
38 397 Misoellaenous Equip.
39 397 . 1 Misc Equipment CNG
40 398 Other Tangible Plant
41
42
43
44
45 Subtotal s 960.283 s (418,648) s 541,635
46
47 903 Land and Land Rights s s
48 904 Structures and Improvments
49 940 Office Furniture and Fixtures
50 940.1 Computers and Software 339,845 s 314,215 654,060
51 940.2 Customer First
52 955 Power Generation
53 995 Power Operated Equipment
54 997 Misoellaenous Equipment
55 Subtotal s 339.845 s 314,215 s 654.060
56
57 Total vuuumnwas 104.433 s 1 195,695
58
59
60 M2QMJ Q M
61 Work Papers
62
DECISION NO. 82134

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3 l
i

Docusign Envelope ID: D41250708995496BAAOD33009702AD1 B
DOCKET NO. W-0I427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Sewer Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B2
Original Cost Rate Base Proforma Adjustments Page 3.4
Adjustment Number 1 D Witness: Bourassa
Line
M
1 CWIP Transfers
2 Adjusted
3 Test Year Settlement
4 Acct. Orginal Settlement Orginal
5 M Description M Adjustments Cost
6 106 Construction Completed Not Classified $ s
7 351 Organization
8 352 Franchise
9 353 Land
10 354 Structures & Improvements 187,379 187,379
11 355 Power Generation
12 355.1 Solar Generation
13 360 Collection Sewer Forced 1,061,426 1,061,426
14 361 Collection Sewers Gravity 300.580 300,580
15 362 Special Collecting Structures
16 363 Customer Services 262,707 262,707
17 364 Flow Measuring Devices
18 365 Flow Measuring Installations
19 366 Reuse Services
20 367 Reuse Meters And Installation
21 370 Receiving Wells
22 371 Pumping Equipment 29,430 29,430
23 374 Reuse Distribution Reservoirs
24 375 Reuse Trans. and Dist. System
25 380 Treatment 8. Disposal Equipment 720,219 720,219
26 380,1 Odor Control GAC
27 381 Plant Sewers
28 382 Outfall Sewer Lines
29 389 Other Sewer Plant & Equipment
30 390 Office Furniture & Equipment 91,758 91,758
31 390.1 Computers and Software
32 391 Transportation Equipment
33 392 Stores Equipment
34 393 Tools. Shop And Garage Equip
35 394 Laboratory Equip 8,784 8,784
36 395 Power Operated Equipment
37 396 Communication Equip
38 397 Miscellaenous Equip.
39 397.1 Misc Equipment CNG
40 398 Other Tangible Plant
41
42
43
44 l
l
45
46 TOTALS s 2,662,283 s s 2,662,283
47
48
49 SUPPORTING SCHEDULE RECAP SCHEDULES:
50 Work papers B-2, page 3
51
DECISION no. 82134

Docusign Envelope ID; D41250706995-496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Llberty Utllltln (Litchfield Park Water A Sewer) Corp. Sewer Dlvislon Exhtbil
Test Year EndeC December 31, 2024 Settlement Schedule B2
Original Cost Rate Base Proforma Adjustments Page 3 5
Adjustment Number 1 D Witness: Bourassa
Lino
NO
1 m 4 a m r m Jg»¢¢tm
2 Adwsled
3 Test Year
4 A w, 2021 2022 2023 2024 SQIIOMGM
5 N9. Qnmnnm Ordinall mnnmns Ad8»!§LD!.l( emmmsm A511011M9N1 mnmmm
6 106 Construction Completed Not Classified s s
7 351 Organization
a 352 Franchise
9 asa Land
10 354 Structures 8 Improvements
11 355 Power Generation
12 355. 1 Solar Generation
13 360 Collection Sewer Forced
14 361 Colection Sewers Gravity s (585,744) s (422,995) s (28/.689) s (78,958) (1 .355,386)
15 362 Soedal Cclecting Structures
16 363 Customer Services
17 364 Flow Measuring Davie's
18 365 Flow Measuring Installations
19 366 Rouse Services
20 367 Rouse Meters And Installation
21 370 Receiving Wells 1
22 371 Pumping Equipment
23 374 Reuse Distribution Reservoirs
24 375 Reuse Trans. and Dust. System
25 380 Treatment a Disposal Equipment
26 380 1 Odor Control GAC
27 381 PUnt Sewers
28 382 Outfall Sewer Lines
29 389 Other Sewer Plant A Equipment
30 390 Ofliaa Furniture 8- Equipment
31 390. 1 Computers and Software
32 391 Trenspodatron Equipment
33 392 Stores Equipment
34 393 Tools, Shop And Garage Equip
35 394 Laboratory Equip
36 395 Power Operated Equipment
37 396 Communication Equip
38 397 Mnseelaenous Equip.
39 397. 1 Misc Equipment CNG
40 398 Other Tangible Pint
41
42
43
44
45
46 TOTALS s s (565,744) s (422,995) s (287,689) s (78,958) s (1,355.386)
47
48
49 §!EEQB1R£l§QHED!LE BE§AE§§HEQ!U3L
50 Work papers B2,page3
51
chew
DECISION NO. 82134

Docusign Envelope ID: 041 zsm06995496Bm00-a30D9702A01 B
DOCKETNO. W-01427A-25-0126. ETAL.
Llb.ny umm- (Lnchftold Plrk Water 5 $.w.r) Corp. Sewer Dlvlslon ExNhl1
Tut Your Ended Deeembov 31,2024 Selllsmem Schudde 82
Original Cost Rats Base Proforma Adyuslments Page 3.6
Adjustment Nunber 1 D Wnnsss: Bou11a1a
Luna
ML
1 5 4 4 5 4 4
2 Adjusted
3 Tut Year
4 Aw. Orgnnal 2020 2021 2022 2023 2024 Settlemern
5 b e. My$Z!EMl 9 9 8 w a r m agumm aguamnns Ad I m am uz m m a a n a m m
6 109 Construction Compietod Not Ciasslfnod s s
7 351 Omanizatlon
a 352 Frandrse
9 353 L.nd
10 354 Slructurn G Improvement s 25,705 s 53.377 s 91158 170,830
11 355 Power Genaralron s (26,252) (36,252)
12 355. 1 Solar Gensrnhon
13 350 Carrion Sewer Forced
14 361 Colesdion Sewers Gravity
15 382 Spacial Collecting Slructurns
16 363 Customer Services
17 364 FlowMeasuringDevices
18 365 Flow Measuring Installations
19 366 Reuse Services
20 367 Raina Mrslara And Inslalauon
21 370 Receevrng wen
22 371 Purnging Emlnmevi
23 374 Rana Dlstnbdion Rslurvullt
24 375 Rania Tran. nM Dot. System
25 380 Trellment s Disposal Equlpmevi
26 380. 1 Odor Control GAC
27 381 PUnt Sewer.
28 382 Outfall Sewer Lines
29 389 Other Sewer Plant a Equipment
to 391 Of foe Furniture A Equipment s 25.255 s (91,758) (68,502)
31 3901 Computer Ind Soltwen s (50,981 ) s (17.125) (88085)
32 391 Trenepodlllon Equpmem
33 392 Stoves Equipment
34 393 Took. Shop And Garage Equip
35 394 Laboratory Equip
36 395 Power Operated Equlpmerl
37 396 Communscatnon EQUIP
38 397 Miacellaencus Equip.
39 397. 1 Misc Equipment CNG
40 391 Olhsr Tangible Plant
41
42
43
44
45
48 TOTALS so S s s s s 0
47
48
49 sueeQanrsss_acusmu.§ a£§Aa§auama§§
50 worn papers B2. page s
51
chueu
DECISION NO. 82134

Docusign Envelope ID: D41250706995496BAAOD~33009702AD1 B
DOCKET N(). W-0I427A-25-0126. ET AL.
Llbony umm- (Lltehlkld Part Wlhr 6 S.w.r) Corp. Sown Dlvlslon Exhibit
To! Vaal Ended December 31, 2024 Setllamom Sd1a4uls 82
Orignnnl Cas\ Rule Base Pmlorma Adlus¢merni Page 3,7
Adjustment NL.nber1 D Wnnsss: Bouraasa
one
N9.
1 21£m5 ! u
2 Adjutwd
3 Tas! Year
4 Mac( , Orgmal 2020 2021 2022 2023 2024 Smtlemed
5 M 44949494 a n amuamx m u m ; 041141444 MHMMM 8518548221 m u m
e 106 Construction Completed Not Ctasslfsad s s .
7 351 Orgarizahon
a 352 Franchise
g 353 Lllld
10 354 Slructun 8 Improvements s (120.041) (120,041)
11 355 PowerGenoroiion
12 355. 1 Solar Generation
13 360 Colieclion Sewer Forced
14 ae1 Collection Sewers Gravrly s (367,180) s n6s1,649) (531,829)
15 362 Spousal Colloetang S!r\M\ll.
16 383 Customer Sowicu
17 354 Flow Measuring Devloos
18 365 Flow Measuring lnualarroru
19 366 Rouse Scrvicn
20 367 Reuse Meters And Instahtron
21 370 Reach/mg wen
22 371 Punlging Eqwvmell s (85,742) (85,742)
23 374 Revue DsinbuNon Ruervou
24 375 Reuse Huns. one! Dust. Syslem
25 380 Treatment 8 Dusposal Equipment s (6,647) (8,647)
26 380. 1 Odor Control GAC
27 381 Plant Sown
28 382 Outfall Sewer Lines
29 389 Olhef Sewer Plant & Equipment
30 390 Office Fumhuru 8 Euwmui
31 Asa 1 Compmxen and Sokwiii
32 391 Yraruponation Equpmem
33 392 Slorn Equipment
34 393 Tools. Shop And Garage Equip
35 394 Lmnmvy Equiv
as 395 Powev Operated EquNpmenl
37 391 Commuvicahon Equip
38 397 Mncellsnom Euuv. s (36.814) (38,814)
39 397. 1 Misc Equipment CNG
40 Asa Other Tangible Pllnl
41
42 i
l
43
44
45
46 TOTALS s s (35,814) s (85,742) s (36u80) s (6,641) s (28490) 'i (781,074)
47
48
49 §ueesxs1!ma§Qu:nu1.: a§9Aa§9nHma§a
50 Work papsrs B2. page 3
51
Chsdt
DECISION NO. 82134

Docusign Envelope ID: D41250706995496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Llbeny umnsu (Lkchfkld Park Water I Sewer) Corp, Sewer Dlvlslon ExNbi\
Tas! Year Ended December 31, 2024 Settlement Schedule B2
Ongnai Ccsl Rate Bale Proforma Adjustments Page 3.8
Aapumem Number 1 B Wdnns: Bowne
Line
NO%
1 E MQQEQQQ
2 Adpslsd
3 Test Year
4 AOCL Orginal 2019 2020 2021 2022 2023 2024 Settlement
5 N106 251912499 MY ¢@lmm agmnm assmuma AQMIMQM Mmsnm 69189954 a4namn
6 Canstructlon Completed No! Cliulhod s s .
7 351 Orgerlzabon s
8 352 Frand\bt . s
9 353 Land s
10 354 Slruduras G Improvements (177) (58,407) s (58,584)
11 355 Power Generation (568) s (568)
12 355. 1 Solar Generation s
13 350 Cdksclron Sewer Forced o s o
14 361 Cdbclion Sewers Gravity (415) s (415)
15 362 Space! Collecting Slruauru . s .
16 363 Customer Services . s .
17 Asa Flow mwun"s Daviess . s .
1B 365 Flow Measuring msualoueua . s .
19 366 Reuse Services . s .
20 367 Reuse Meters And Irmlalaiion (17) s (17)
21 370 Recuvhg wears (117) s (117)
22 371 pwnws Equipment s
23 374 Reuse Disliihuuon Resewolrs (174) (352) (242) (252) s (1,020)
24 375 Repo Trans. and Dial. System (340) ues) s (529)
25 380 Treetmem A Disposal Equipment (63) (177) s (240)
26 380. 1 Odor Consul GAC s
27 381 Plan Sewers (B) s (8)
28 382 OWen Sewer Lines . s .
29 389 Other Sewer Plant & Equipment . s .
30 390 Office Furnitufa 8 Eqtdpflwnt . s .
31 390. 1 Campunarx and Software . s .
32 391 Transparlahon Equipment s
33 392 Slums Equipment . s .
34 393 Tools. SUP And Guage et s .
35 394 Laboratory Equip . s .
36 395 Power Operated Equipment . s .
37 396 Cammuniatuon Equip (108) s (108)
38 397 Mtlocttaemous Equip, . s .
39 397. 1 Misc Equipment CNG . s .
40 398 Other Tangible Plant . s .
41
42 Sutxuual s s s (514) s (415) s (1,474) s (242) s (58,951) s (61,606)
43
44
45
46 PP RTI H
41 w0* Papen
48
DECISION NO. 82134__

Docusign Envelope ID: D4125070-6995-496BAAOD33009702AD1 B
DOCKET NO. W-0I427A-25-0126. ET AL.
Liberty Utllltles (Lltchfleld Park Water a Sewer) Corp. Sewer Dlvlslon Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B2
Original Cost Rate Base Profomla Adjustments Page 3.9
Adjustment Number 1 E Witness: Bourassa
Line
M
1 R lP nt PlntR nu n
2 Adjusted Settlement
3 Test Year Settlement Adjusted Plant
4 AOCL Orginal B2 Orginal Por
5 ND. MEQEEMQD $3183 Aanaxmgnn (Mit Bmnnumlm umnregm
6 106 Construction Completed Not Classified s s s s s
1 351 Organization (3,211) 3.211 0 (0)
8 352 Franchise 29,596 (3,211} 26.385 26,385
9 353 Land 4,185,292 4,185,292 4,185,292
10 354 Structures a Improvements 84.851.648 (57,880) 84.793.769 84.793,769
11 355 Power Generation 5,328,145 (36,820) 5,291,325 5,291,325
12 355. 1 Solar Generation
13 360 Collection Sewer Forced 13,310,538 0 13,310,537 13,310,537
14 361 Collection Sewers Gravity 54,919,980 (2,048,700) 52,871,280 52,a71,2ao
15 362 Special Collecting Structures
16 363 Customer Services 1,487,610 39,492 1,527,102 1.527.102
17 354 Flow Measuring Devices 172,125 172,125 172,125
18 365 Flow Measuring Installations
19 366 Reuse Services 4,153,479 4,153,479 4,153,479
20 367 Reuse Meters And Installation 219,481 (17) 219,463 219,463
21 370 ReceMng Walls 1,072,757 (117) 1.072.640 1.072.640
22 371 Pumping Equipment 8,668,916 (256,647) 8.412.269 8,412,269
23 374 Reuse Distribution Reservoirs 1,898,934 (1 .020) 1,697,915 1,697,915
24 375 Reuse Trans. and Dist. System 1.413.040 (529) 1.412.510 1,412,510
25 380 Treatment & Disposal Equipment 48,711 .657 (187,406) 46,544,251 46.544,251
26 380. 1 Odor Control GAC
27 381 Plan! Sewers 22,548,293 207,545 22.755,838 22,755.838
28 382 Outfall Sewer Lines 343.681 343.681 343.681
29 389 Other Sewer Plant 8 Equipment 839,750 839.750 839,750
30 390 Office Furniture a Equipment 516,616 (66,502) 450.113 450.113
31 390 1 Computers and Software 457.098 (68,085) 389.012 389.012
32 391 Transportation Equipment 403,454 403,454 403.454
33 392 Stores Equipment 8.968 8.968 8.968
34 393 Tools. Shop And Garage Equip 557.385 (13,194) 644.191 644,191
35 394 Laboratory Equip 225,315 225.315 225.315
36 395 Power Operated Equipment 500,203 500,203 500,203
37 396 Communication Equip 6,297,253 (160,108) 6,137,144 6,137,144
38 397 Miscellaenous Equip. 375.982 (36,a14) 339,168 339,168
39 397. 1 Misc Equipment CNG 318.526 318.526 318.526
40 398 Other Tangible Plant 79,028 79.028 79,028
41
42
43
44
45
46 TOTALS s 261.791.535 s (2,666.802) s 259,124,733 s 259,124,733 s (0)
47
48
49 S.U.EEQB1!bl§..$$2t1EQU.LE BEQAE§$0ED!LES
50 B2. pélqes 3.1 through 3.4 B2,page3
51 B2, pages 3.6 through 3.10
82134
DECISION NO.

Docusign Envelope ID: D41250706995496BAAOD33009702AD1 B
DOCKET NO. W-()l427A-25-0126. ET AL.
Llbony Utllltlu (Lllchflold Park Water G Sewer) Corp. Sewer Divlslon Exhlbll
Test Year Ended December 31. 2024 Settlement Schedule B2
Original Cost Rate Base Prolofrna Mjuslmenls Page 4 . 1
Adjustment Number 2 . A Witness Bouraus
Lino
M .
1 smmmzmuia
2 111 121 [3] 14] : [1lX[21XI3I
3 Liberty Alloca\6d Dsrecx
4 Aw, Original Ulllllios Original Allocalod Settlement
5 un. QQISIIMISE g m f9Q91 m m $220 Qmsnaaszmfazn Am»§4m¢nt
6 903 Land and Land Rights s 6.656794 30.2279% s s s
904 Structures and Improvements 4,041,052 6.656796 30.2279% 81,313 81,313
7
8
9
10
11 LlL§ml2:99!l2.E!!.fLl1§Q2Q)A!D
12
13 903 Land and Land Rights s 51 .3954 34.5602°/» s s s
14 904 Structures aM Improvements 732.762 51.39% a45seo2% 130.139 130,139
15 940 Office Fumiture and Equipment 1.408.790 51.39% 34.5602% 250.202 36.158 (214,045)
16 940 1 Computers and Software 937.092 86.78% 34.560296 281.047 247,091 (33,956)
17 940.2 Customer First 2.115.461 86.78% 34.560296 634,457 636.187 1.730
18 955 Power Generation 999 51.39% 34.560256 177 177
19 995 Power Operated Equipment 165,147 51.39% 34 5602% 29.330 29.330
20
21 Totals
22
23 903 Land and Land Rights s s s s
24 904 Struduru and Improvements 4,773.814 211,452 211,452
25 940 OKice Furniture and Equipment 1,408,790 250.202 36.158 (214,045)
26 940 1 Computers and Software 937.092 281,047 247,091 (33,956)
27 940.2 Customer Flnst 2.115.461 634.457 636,187 1,730
28 955 Power Generalnon 999 177 177
29 995 Power Operated Equipment 165,147 29.330 29.330
30 997 Musceltaenous Equipment
31 . L _ 9401 _ . t 303 _ s u06666 s 1.160 395 s 246,271
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46 pp RTIN
&Qee.sQneQuLe§;
47 Work papers B2,page4
48
DECISION NO. 82134
l

DocusignEnvelope ID: D4125D706995495BMOD330097D2AD1B
DOCKET NO. W-01427A-25-0126, FT AL.
Liberty Utilities (Lltchfield Park Water a Sewer) Corp. Sewer Dlvlslon Exhibit
Test Year Ended December 31. 2024 Settlement Schedule B-2
Original Cost Rate Base Proforma Adjustments Page 4.2
Adjustment Number 2 B Witness: Bourassa
Line
M
1 PostTest Year Plant AID
2
3 Settlement Direct
4 Acct. Depr PTY PTYP Plant PTYP Settlement
5 u Description 8é18 Plant Depreciation De r . dion Adiuslmenl
6 351 Organization 0.00% s s s s
7 352 Franchise 0.00%
8 353 Land 0.00%
g 354 Structures & Improvements 3.33%
10 355 Power Generation 5.00%
11 355.1 Solar Generation 6.67%
12 360 Collection Sewer Forced 2.00%
13 361 Collection Sewers Gravity 2.00% 113,513 1,135 2,746 (1.611)
14 362 Special Collecting Structures 2.00%
15 363 Customer Services 2.00% 80,742 807 413 395
16 364 Flow Measuring Devices 10.00%
17 365 Flow Measuring Installations 10.00%
18 366 Reuse Services 2.00%
19 367 Reuse Meters And Installation 8.33%
20 370 Receiving Wells 3.33%
21 371 Pumping Equipment 12.50% 85.533 5,346 16.027 (10,682)
22 374 Reuse Distribution Reservoirs 2.50%
23 375 Reuse Trans. and Dist. System 2.50%
24 380 Treatment & Disposal Equipment 5.00% 54,293 1.357 5,370 (4,013)
25 380. 1 Odor Control GAC 0.00%
26 381 Plant Sewers 5.00% 207,553 5,188.83 5,189
27 382 Outfall Sewer Lines 3.33%
28 389 Other Sewer Plant a Equipment 6.67%
29 390 Office Furniture 8 Equipment 6.67%
30 390. 1 Computers and Software 20.00%
31 391 Transportation Equipment 20.00%
32 392 Stores Equipment 4.00%
33 393 Tools, Shop And Garage Equip 5.00% 330 (330)
34 394 Laboratory Equip 10.00%
35 395 Power Operated Equipment 5.00%
36 396 Communication Equip 10.00% 8,000 (8,000)
37 397 Miscellaenous Equip, 10.00%
38 397.1 Misc Equipment CNG 3.33%
39 398 Other Tangible Plant 10.00%
40
41
42
43 Subtotal s 541 .635 s 13835 $5 32886 s 19,051
44
45 903 Land and Land Rights 0.00% s s
46 904 Stmcturos and lmprovments 2.56%
47 940 Office Furniture and Fixtures 4.00%
48 940. 1 Computers and Software 20.00% 654,060 65,406 33.985 31,422
49 940.2 Customer First 5.00%
50 955 Power Generation 5.00%
51 995 Power Operated Equipment 5.00%
52 997 Miscellaenous Equipment 10.00%
53 Subtotal s 654,060 s 65,406 s 33,985 s 31,422
54
55 Total s 1,195,695 s 79.241 s 66.871 s 12,370
56
57
so PPORTIN H a:94e§.¢_u:Ql.u.§§;
59 Work papers B2, page 4
60
82134_ i
DECISION NO. l
l

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c3
§o

Docusign Envelope ID: D41250706995-496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0l26. ET AL.
Llberty Utilities (Litchfield Park Water 8- Sewer) Corp. Sewer Dlvlslon Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B2
Original Cost Rate Base Proforma Adjustments Page 4.4
Adjustment Number 2 D Witness: Bourassa
Lune
M
1 PT f
2
3 Settlement Settlement Direct
4 Acct. Deaf CWIP CWIP Transfer CWIP Transfer Settlement
5 M Qggzsnsssm Rate Transfers Depreciation Depreciation Adjustment
6 351 Organization 0.00% s s - s s
7 352 Franchise 0.00%
8 353 Land 0.00%
g 354 Structures & Improvements 3.33% 187,379 3,120 3,120
10 355 Power Generation 5.00%
11 355.1 Solar Generation 6.67%
12 360 Collection Sewer Forced 2.00% 1 .061 ,426 10,614 10,614
13 361 Collection Sewers Gravity 2.00% 300,580 3,006 3,006
14 362 Special Collecting Structures 2.00%
15 363 Customer Services 2.00% 262,707 2.627 2.627
16 364 Flow Measuring Devices 10.00%
17 365 Flow Measuring Installations 10.00%
18 366 Reuse Services 2.00%
19 367 Reuse Meters And Installation 8.33%
20 370 Receiving Wells 3.33%
21 371 Pumping Equipment 12.50% 29,430 1 ,839 1,839
22 374 Reuse Distribution Reservoirs 2.50%
23 375 Reuse Trans. and Dist. System 2.50%
24 380 Treatment 8 Disposal Equipment 5.00% 720.219 18.005 18.005
25 380. 1 Odor Control GAC 0.00%
26 381 Plant Sewers 5.00%
27 382 Outfall Sewer Lines 3.33%
28 389 Other Sewer Plant & Equipment 6.67%
29 390 Oftioe Furniture & Equipment 6.87% 91,758 3,060 3,060
30 390.1 Computers and Software 20.00%
31 391 Transportation Equipment 20.00%
32 392 Stores Equipment 4.00%
33 393 Tools, Shop And Garage Equip 5.00%
34 394 Laboratory Equip 10.00% 8,784 439 439
35 395 Power Operated Equipment 5.00%
36 396 Communication Equip 10.00%
37 397 Miscellaenous Equip. 10.00%
38 397.1 Misc Equipment CNG 3.33%
39 398 Other Tangible Plant 10.00%
40
41
42
43 Subtotal s 2.662.283 s 42,711 s 42.711 s
44
45 903 Land and Land Rights 0.00% s s s s
46 904 Structures and lmprovments 2.56%
47 940 Offoce Furniture and Fixtures 4.00%
48 940.1 Computers and Software 20.00%
49 940.2 Customer First 5.00%
50 955 Power Generation 5.00%
51 995 Power Operated Equipment 5.00%
52 Subtotal s s s s
53
54 Total s 2,6§2,283 s 42,711 s 42,711 s
55
56
57 PP RT N H aesxxnenumi
58 Work papers B2. page 4
59
DECISION no. 82134

Docusign Envelope ID: D4125070-6995496B 0D33009702AD1B
DOCKET NO. W-01427A-25-0l26. ET AL.
Llbeny uulmu (Llldwleld Park Wiief G Sewer) Corp.. Sewer Dlvlslon ExNb0\
Test Year Ended December 31. 2024 Seltlemem Schedule B2
Orlgmal Cost Rain Base Plolcrma Aapsrnwm Page 4 .5
Adjustment Nunaaa 2 B W lnlss: Bount-
Line
un.
1 8uu4muu8muumuawnnAD
2
3 Sememem Semlamem Selthmsnl SGHIGMOM Solilemoni
4 And. Dev' Adddlolll Tsf 2021 2022 2023 2024 S¢uum¢ni Sslllemcnl
5 MQ. n u m b HIM suannr :annum eanmnni autumn eahnmmms Qummn anmmn
8 351 Ovgunlzndon o go* s s
7 352 F randwu 000%
a 353 L.nd 0.00%
9 354 Structures G hnprovmanu 3.33%
10 355 Power Generation 5.00*
11 355 l Solar Generation 6.67%
12 aeo Coilrscllon Suwnr Forced zones
13 361 Collection Sewers Gravity 2.00% (1.355.386) (5.857.44) (15.544.82) (22.651.66) (26,318.14) (70,172) (70,172)
14 sez Sp¢aal can.emo Stmdllts 200%
15 asa Customer Services 2 Goss
i s 364 Flow Measuring Devkaa 10.w*
17 365 Flow Mauurtng munauom 1°.W*
18 :she Rana; Services 2.00%
19 367 Raul Meters And lnsulldbvl e 33%
20 370 Recawmg Walla 3.33%
21 311 Pumping Equipment 12.50%
22 374 Rouse Distnbutlon Rnnfvuln 2.50%
23 375 Rouse Tllno, .no Dbl System 2.50%
24 380 Ttnatmunt 8 Diposll Equipment 5.00%
25 :ao 1 Odor canvas GAC 0.00%
2s 381 Plant Sworn s go*
27 382 OuMill1 Smut Lima 3.3398
2s 389 Otllel Scwsf Plant A Equlpmanl 6 ans
29 390 Office Fufrdlun & Equipment 8.87%
30 aoo.1 Computers and Soflwars 20.00*
31 391 Trannpnmtlon Equlpmml 20.00%
32 392 Slain Equipment 4 00%
33 393 Tools, Shop And Galaga Equp 500%
34 394 u p - t o f y s wf 1000%
as 396 Po-r Opantod Equtpmnt 500%
36 396 Ccmmunicnllcll Equip 10 W%
37 397 Mlacelaencus Equip. 1000%
38 307.1 Misc Equinmont CNG 3.33%
39 398 Other Tangible Plan! 10.00%
40
41
42
43 Sublalnl 1.355386 s 857 15545 22.652 26.318 70,172 10,112
44
45 eos L»l\d Ana L.l1\1 R1¢l¢l 0.00% s
48 904 Slmcluvns and lmpmvmema 2.56%
47 940 OMen Fumlhn and Fhzwuos 4 oops
pa 940 1 Compmsn and Sofrwsrn 70 go*
49 940.2 Customer First 5 00%
50 955 Powu Generation 5.00%
51 995 Powaf Opcvaind Equnpmcnl 5.00%
52 997 Mbulaonnus Equipment 10.ooss
53 suuwui s s s . s s . s . s
54
55 Tool 1 355386 5. 15545 2652 318 70172 0172
56
57
se sueeaalsusassnensas BE§AE§§HEQMLE§
59 we* pgpgri B2. page 4
so
DECISION NO. 82134

Docusign Envelope ID: D4125D706995-496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Llburly Uliiltiu (Llchlhld Put W.hr I 801111) Corp. Saw.: DWhlun
Exhlhil
Tail Your Ended Dammhod 31. 2021
Stmomm Sd\8¢uU B2
Ougvual Cot( Rd. Bus. Pmlonna Adyuxlmonlu
P.g. 4 s
Adpshnanl Number 2 B W l n u s B o u n -
L e t
un.
| eunxn¢alnn.e¢:z
2
3 8.fllom.v\! s¢u»-»»m Senlomanx Ssnlvrnoru smum\l S0108Mtn1
A Aan 0-91 A1ddlio1\s TII 2020 2021 2022 2023 2021 Selummi Selllsmsnl
s Na. h m m m a n l a t i n Mmmmm Mmnmm R a m a n mammal ealnm nnl m~mum Mwnmm
s 351 Ovylludacn o Cox s
s
7 352 Frundun o 00%
s Asa U n a 0100%
9 354 Smnzauus l lwruuomenu 3 asks 170.839 128 ass 1145 2,633 4,161 9,823 9,823
10 ass Fawn Gononhcn s go* 86.252 I (was) (1,513) (1313) (4,532) (4,532)
11 356 1 Sol! Gonomuon a 67%
12 360 Calechon Scwsf nana 2.00%
13 361 Calactlan Say 6'.v*Y 2 Goss
14 362 s eal Calaam g Sim cnn. 2 N *
15 363 Oudomov Sowtcu 2.00%
16 a u Flow Msuumg Dawes: 1000%
11 365 Flow ldaasumg lnllllahons 10.00%
16 :s o Rus e Svm cu 2.00%
19 367 Rm - Mum Md tnualauon a 33% 9
20 370 ngmymg Wolf a 33%
21 371 Fuming Equumom 1z.sass
22 374 Run. D\lh\bu\mn Hannah 2 sox
23 375 Ru- Tum .no Did Syd um 2 50*
24 380 Trelimenl A Dnpourl Eqvlamanl 5 loss
25 aao.1 Odor COfl0\)l GAC o was
26 381 Pl.m Swan 5 w *
27 382 0vMM Scum Ln- a.:a~x
25 369 Other Sewer Plan 6 Equiomenl 6 was
29 390 OWioa Funlun a Eqummsnt s ans 1W.502) 842 1.aaa L6a5 1.885 (1,376) 4.520
4,520
30 ago I common and Soltwln 20.00% (9 ,M5 ) (5096) (10,102) (11,905) (13,617) 113417) (sum (54,427)
31 391 TrnmgsaNnton Eqwpmonl 20 cess
32 392 Slant Euuumenl 4 00*
33 Asa Took. Shop Ami Gliqi swf 5 go*
34 394 Lnhonlofy EalW 10 was
35 305 Fara' Optnllod Equlpmom 5 go*
36 396 Commumoanon Equal 10.00%
31 391 lhaelllonaul Equal 100015
as 397.1 we Eqdpmm CNG :w a s
39 308 Olhu Tinghh Pun: w o e s
40
41
42
43 sunmul o .lKxKHlllllllll.uEB. l u mi x 44615
44
45 903 Land um L.nd Rlghll ones s
i s 904 Sluvciulu aM Imawvmenu 2 sos
47 940 Off loa Fumilun Una runw- 4 Cox
48 940 I Cnmnuivn .no Sollwavn 20 nos
49 940.2 Cunlomar Fnnl 5 go*
50 955 Power Gcncnlncro 5.00%
51 995 Pvcwnr Opurahd Equ4pm.n s 00*
52 997 Mwullasnnus Equhmunl 10.00%
53 $ublaul s s s s s s s
54
55 ToI.l 5 old (was as (9.382) s 111.1121 s (12.60) Ii (44,615) 5 (44,615)
56
57
se sszaanu~snunuas as~aassuumusm
59 Work papen B2. pig; A
s o
DECISION NO. _82134

Docusign Envelope ID: D41250706995496BAAOD33009702AD1B
DOCKET NO. W-0I427A-25-0126. ET AL.
Lllufly Lilith. llltchlhki Put Wlhr I Blow n)Cwv Scw urDivhkm
Emma
nu Y-r Unum Dneamnof 31,2024
SutlhmumSd\ld\ll¢B2
Ongmu Con Rate Ban FvulmmaMpslmnls
Page 4.7
Adpumunl Number 2 B Wllncnt Bowen.
Ll fl l
u n .
1 zunnanmn.ea
2
a 8d00nun1 Sndcm om Saluemem StillMan! s:w»»nl S a t u m sm
4 A651 D i f Addnbm nr 2020 2901 2022 2023 2024 Sememonl Se4\lemem
s u n . nngnm E l k u a a u h m m m 6412219991 m u m 6 a i 8 1 i n a d h u m m l
6 351 Olylnillhon o g o * s
1 a sa Fy.y\d* o n ce s s
a 353 U n a 0.00%
9 354 sm m n - I l n p m v a m a n l . 3 m (120911)
(1899) 11.9991 (1389)
10 355 Phwcr Gnncnl l on 5.00%
11 355.1 Solar Gcnevauon 8 . B 7 *
12 360 Cn l e ch u n Se we r Fo wl 2 g o *
13 301 Co l l a o tu n Sl wtfl Gu sty 2.00% (una29) (3672)
(7344) lumen) (20.005) 124005)
14 : so Spccai Col oam g Suucl urn 2 g o *
15 a e s C u st o m $ d v t c u 2.00%
\ 6 364 Fl o w M o u u m g Da vi n a 100096
w 365 Fl o w M -a u m g u u u u n o n a 1000'6
18 a e s Ro u se S e m e n 2.00%
19 387 Ram p M l \en And l nul l l l l on 8 . 3 3 *
20 370 Rncswm g Wol s 3.33%
21 371 Puwulg EquiunnoM 12.50% Las 142) (5,359) (10,115) (10,718) (10.111) (37,512) (3I.512)
22 374 Rm - Dl st vi b u n o n Ra o n o h 2.50%
23 375 Ra m s T ra n s. . n d Di d S yi h m 2 80%
24 380 T reatment A Dupo-I Eqwpmenl s g o * (6.647) no) (332)
u r l up)
25 aao.1 Odor conga GAC 0.00%
26 381 Pl an! Sower 5 n 0 ss
27 382 Ou te d So w.: L i n n 3 3 3 *
28 309 of' Sewer Pl um a Equl nm enx r e m
29 390 Olflea Fermium a Equipment s e n
t o : s o x Co l n p u u n .n o Sa l m o n 200098
31 Asa T m a p o n u n o n E a wm w 2 0 0 0 *
32 392 Si l os Equi umanl w o e s
33 as: Tools, SAD Ana Garage Equal 5.00%
34 394 Lguqnuny Equip m o o n s
35 395 Pnwi l Ovonua EqWnm cnt 5 0 0 %
as 398 C u m m u m u c n E w l n 10.00%
at JW M aul aonous Equi p 100016 (36,814) (19419 (3,081 ) (3501 ) (1681) (3,601) 116.566) (16.588)
as 397.1 M ac Equam cm CNG amass
39 a sa Ol af T .4l gIl i Q PIIM m o o n
40
41
42
43 Suhl nhl 701 074 \ Ml 1ao11 21909 IIEHDIIHDEHI Mai
44
45 903 L.nd Una Una Rlgml 0 .0 0 $ s
a s 904 Shuctams and lmnmvmanls 2 .5 6 $
47 940 Oi i l cn Fm nl un .no Hxtuvn 4 mass
48 940 I Compulnn Ana SafNv.f. 2 0 o u t
49 8402 Cuslomu Fun 5 . 0 0 *
50 055 Po -1 Go m vn h o n 500°/»
51 995 F0 * V f 0 V . f * 4 E q u l a f n wl 5 . g 0 *
52 997 M wu l n a n u u a E a wwv \ i w o e s
53 Suhl oi d s s s s s s s
54
i s T a l l s 081.074) :L (1 , u 1 ) Is 11a.071) s 121,a09» e; (25,720) i i (7 6 .5 BII i i (76.541)
so
57
so szznsnuns~uamas BE£A£§&dEDHLE§
se we popon B2. pug; 4
so
DECISION no. _82134

Docusign Envelope ID; D4125070-6995496BAAOD330D97D2AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Ub.lly Utilities (Litchfield P.r\x Was: I Sewer) Corp. Sewer Division Exfhl
Tux year hnaea Dteembef 31,2024 Seliiemem swaauo B2
Oneal Cost Rats Base Pmlovma Adpstmenlx Page 4 8
Adpelment Numbtf 2 B Wine-: Bouuuu
Lhs
N9..
1 enutmmmunm
2
3 Settlement Settlement Se¢llemenl SelUemem SeltilneM Se1\lomcri
4 Anna. u p Addihlw Tel :mo 2021 2022 2093 2024 Sum¢-mi
5 NO m i n Mann: Quorum Izzsnetnnc Annmmnm mmn mn aannxmms anmmonx
a 351 Ovylrlizllion 0 go* s s s s s s s .
7 i s : Frlnchho 0.00%
a 353 Lloyd 0.00%
9 354 Suuciufna a llvwuwnunls a 33% (50584) (3) (6) (976) wan
10 355 Paws' Gumlilion 5 go* w e (14) (28) (28) (71)
11 355 1 Sail! Gonna-an 6.67%
12 360 Collwuon S.w.r Fusucd 2.00% o o 0
13 381 Catalan Sowcn Gmvhy 20O* (415) (4) (8) (8) (8) (29)
14 362 Special coloring s1~¢wm 2 00%
15 363 Customer Samoa: 2.00%
16 354 Flow M-sumg Devious wo e s
17 365 Flow Measuring lnstllahcm 100058
15 :as Noun Sewlnel 2.00%
19 367 Rana Motel And Initiation B 33% (17) (l) (1) (1) (4)
20 370 Rncawing Wok 3.33% (117) (2) (2)
21 371 Pumping Equnpmvl 125058
22 374 Rana Dutrindlon nnuwh 2.50% ( w u (2) (1) m (18) (22) (54)
23 376 Rwy Tuna..no Dsl. System 2.50% was) (4) (9) (11) (13) (13) (50)
24 380 Tnltmum G Dsposai Equipment 5.00% (240) (2) (3) (B) (12)
25 aao.1 Otiaf Camvu GAC 0.00%
2s 381 Plan! Sew!!! 5.00% (B) (0) (0)
27 382 own Sew!! Llnss 3 33%
2a sas Othof Sew.r Pint 1 Equipmom a 87%
29 ago OIT.a Fumhn A Eautwwl B 67%
so 390.1 Ccmpmen .no Saliwln 20 go*
31 a¢a1 Tnnsponnuun EqmpmoN 20.00%
32 392 Slauu Equipment 4 go*
33 393 Tools, Shop And Gnrago Equal 5 00%
34 394 Labcfalay Equal 1000*
35 395 Power Open lad Equipment 5 go*
36 asa C€mmuruwbn Elmo 1000'4 (we) (5) (11) (al (27)
37 :or Maul-nous Equip. 10.00%
be 3971 Misc EWUMOM CNG 3.33%
39 aes 00101 hnguua com 10.00%
40
41
42
A3 Suhlolnl 61 eos 17 II-MIIIIUWI 1 073 1 236
44
45 sum Una ma LIed may 000% s
46 904 Stfuctuuu Ana IM0'\°W'\S'1¢l 250%
47 940 Omoo nmu- and FurUn- 400%
48 9401 Comauien .mi Scltwuro 20.00%
49 940 2 Customer Fol 500%
50 955 Pure Gonuauon sucks
51 ses Fawn' Olw.!od Equbnnant 500*
52 997 Mlaoelaouom Equlpmnm 10.00*
53 Suhlntll s s s s s s
54
55 our s (61,606i el (6) s (53) s (87) s 41.013\ Ii (1,236)
so
57
ss 8!E9BDN§§§HBM8£ BE~AE§§0EQHLEE
59 Wort alum B2. pig; 4
so
1ii
9
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82134_
DECISION NO.

Docusign Envelope ID; D41250706995496BMOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilltles (Litchfield Park Water & Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31, 2024 Schedule B2
Original Cost Rate Base Proforma Adjustments Page 4.9
Adjustment Number 2 E Witness: Bourassa
Line
go
1 n iii son munDt A/D R s i n
2
3 Adjusted Plant
4 Acct. Orginal B2 Orginal Per
5 M Description o t A m n 9253 R n dion Differ n
6 108 A/D Not Classified s s s s s
7 106 Construction Completed Not Class
8 351 Organization (3,211) 3,211 o (0) (0)
g 352 Franchise
10 353 Land
11 354 Structures & Improvements 15,979,123 6,003 15,985,127 15,985,127 (0)
355 Power Generation 1,358,455 (4,602) 1.353.852 1.353.852 (0)
12 355.1 Solar Generation
13 360 Collection Sewer Forced 178,037 0 178,037 178,037 (0)
14 381 Collection Sewers Gravity 14.616.944 (91,817) 14,525,127 14,525,127 (0)
15 362 Special Collecting Structures
16 363 Customer Services 140,031 395 140.426 140,426 0
364 Flow Measuring Devices 155,923 155.923 155,923
17 365 Flow Measuring installations
18 366 Reuse Services 1 ,802,683 1,802,683 1 ,802,683
19 367 Reuse Meters And Installation 83.001 (4) 82,998 82,998 (0)
20 370 Receiving Wells 660,440 (2) 660,438 660,438 (0)
21 371 Pumping Equipment 5,073,981 (48,194) 5,025.787 5,025,787 (0)
22 374 Reuse Distribution Reservoirs 124.060 (54) 124.007 124,007 (0)
23 375 Reuse Trans. and Dist. System 293.442 (50) 293.392 293.392 0
24 380 Treatment & Disposal Equipment 12.532.947 (4,524) 12,528,424 12,528,424 0
25 380. 1 Odor Control GAC
26 381 Plant Sewers 3,430,652 5,189 3.435.840 3,435,840 0
27 382 Outfall Sewer Lines 256,229 256,229 256,229
28 389 Other Sewer Plant & Equipment 823,834 823,89 823,834
29 390 Office Furniture & Equipment 242,874 4.520 247,394 247,394 0
30 390. 1 Computers and Software 421 ,168 (54,427) 366,742 366,742 0
31 391 Transportation Equipment 351,871 351 .871 351 ,871
32 392 Stores Equipment 7,987 7,987 7,987
33 393 Tools, Shop And Garage Equip 210,148 (330) 209,818 209.817 (0)
34 394 Laboratory Equip 193.507 193.507 193.507
35 395 Power Operated Equipment 105,746 105.746 105.746
36 396 Communication Equip 1 .483.485 (8,027) 1.475.458 1,475,458 0
37 397 Miscellaenous Equip. 300,770 (16,566) 284,204 284.204 (0)
38 397.1 Misc Equipment CNG 88.356 88.356 88,356
39 398 Other Tangible Plant 50,990 50.990 50,990
40
41
42
43
44 TOTALS s 60,963,473 s (209,279) s 60,754.195 s 60,754,194 s (1)
45
46
47 e2Qalm nuL§ R AP H .
48 B-2. pages 4.1 through 4 4 B2. page 4
49 B-2. pages 3.6 through 3.10
DECISION no.82134

Docusign Envelope ID; D4125070-6995-496BAAOD-33009702AD1B
DOCKET NO. W-0I 427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Sewer Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B2
Original Cost Rate Base Proforma Adjustments Page 5
Adjustment 3 Witness: Bourassa
ContributionsinAid of Construction (CIAC) and Accumulated Amortization
Line
1
2
3 Gross Accumulated
4 CIAC Amortization
5 Settlement Computed balance at End of Test Year s 86,270,883 s 20,083,978
6
7 Adjusted Balance at End of Test Year $ 89,687,625 s 20,279,742
8
g Increase (decrease) s (3,416,742) s (195,764)
10
11
12 Adjustment to CIAC/AA CIAC s 3,418,742 s 195,764
13 Label 3a 3b
14
15
16
17
18
19 SUPPQRTING SCHEDULES RECAP HE
20 E 1 B-2, page 2
21 B2, page 5.1
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
l
DECISION no. 82134__ i
i
l

Docusign Envelope ID: D4125070-6995496BAAOD330097D2AD1 B
DOCKET NO. W-0I427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B-2
Original Cost Rate Base Proforma Adjustments Page 6
Adjustment 4 Witness: Bourassa
Advances-in-And of Construction (AIACl
Line
b e
1
2
3
4 Settlement Computed balance at End of Test Year s 9,282,824
5
6 Adjusted balance at End of Test Year s 11,726,776
7
8 Increase (decrease) s (2,443,953)
9
10
11
12
13
14
15
16
17
18
19 PPORTIN H RECAP SCHEDULES:
20 E-1 B2, page 2
21 B-2, page 6.1
22
23
24
25
26
27
28
29
30
31
32
33
34
35
DECISION NO. 82134

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Docusign Envelope ID: D41250706995-495BAAOD33009702AD1 B
DOCKET N(). W-01427A-25-0126. ET AL.
Liberty Utllltles (Litchfield Park Water & Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31. 2024 Settlement Schedule B2
Accumulated Deferred Income Taxes (ADIT) Page 7.0
Witness: Bourassa
Line Tax
ML Description Book M Duff r BED ADIT Impact
1 PTY Plant s 1,195,695 s 1,195,695 s 24.87% s
2 CWIP Transfers 2,662,283 2,662,283 24.87%
3 Capitalized Overhead (1,294,516) (1 ,294,516) 24.87%
4 PTY Plant A/D 32.886 119,843 86.957 24.87% 21,626
5 CWIP Transfers A/D 42,711 (42,711 ) 24.87% (10,622)
6 Capitalized Overhead A/D (147,104) (199,311) (52,208) 24.87% (12,984)
7 A/D Reconciliation Adjustment (1) 1 24.87% 0
8 Net AIAC Adjustment (2.443.953) 2.443.953 24.87% 607,811
8 Net CIAC Adjustment (3,220,978) 3,220,978 24.87% 801,057
9
10 Increase(decrease) in ADIT s (5.736,438) s (79,469) s 5.656969 $ 1,406,888
11
12 Per Direct s 228.048
13 increase(decrease) in ADIT from above 1,406,888
14
15 Adjustment to ADIT s 1.178840
16
17
18
19
20
21 SUPPORTING SCHEDULES
22 B2, Page 4.2
23 B2, Page 4.3
24 B2, Page 4.4
25 B2, Page 4.5
28 B2, Page 7.1
27 B2, Page 7.2
28 B2, page 5
29 Work papers
30
DECISION NO. _82134

Docusign Envelope ID: D41250706995496BAAOD33009702AD1 B
DOCKETNO. W-01427A-25-0126. ETAL.
Liberty Utlllties (Lltchfleld Park Water & Sewer) Corp. Sewer Dlvlsion Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B2
Computation of Tax Depreciation on PTY Plan! and CWIP Transfers Page 7.1
Witness: Bourassa
Line
N ;
1 PostTest Year Plant and CWIP Transfer A/D
2
3 Tax
4 Acct . Depr PTY PTYP CWIP CWIP Transfer
5 ML De ri lion He Method Rate Plant r ciaiion Tr nsfe foci hon
6 351 Organization 0.00% s s s s
7 352 Franchise 0.00%
8 353 Land 0.00%
g 354 Structures & Improvements 25 SL 4.00%
10 355 Power Generation 25 SL 4.00%
11 355.1 Solar Generation 25 SL 4.00%
12 360 Collection Sewer Forced 25 SL 4.00%
13 361 Collection Sewers Gravity 25 SL 4.00% 113,513 2,270
14 362 Special Collecting Structures 25 SL 4.00%
15 363 Customer Services 25 SL 4.00% 80,742 1,615
16 364 Flow Measuring Devices 25 SL 4.00%
17 365 Flow Measuring Installations 25 SL 4.00%
18 366 Reuse Services 25 SL 4.00%
19 367 Reuse Meters And Installation 25 SL 4.00%
20 370 Receiving Wells 25 SL 4.00%
21 371 Pumping Equipment 25 SL 4 00%
22 374 Reuse Distribution Reservoirs 25 SL 4.00% 85.533 1,711
23 375 Reuse Trans. and Dist. System 25 SL 4.00%
24 380 Treatment a Disposal Equipment 25 SL 4.00%
25 380.1 Odor Control GAC 25 SL 4.00% 54,293 1 .088
26 381 Plant Sewers 25 SL 4.00%
27 382 Outfall Sewer Lines 25 SL 4.00% 207.553 4,151
28 389 Other Sewer Plant & Equipment 25 SL 4.00%
29 390 Office Fumlture a Equipment 5 SL 20.00%
30 390. 1 Computers and Software 3 SL 33.33%
31 391 Transportation Equipment 5 SL 20.00%
32 392 Stores Equipment 7 MACR: 14.29%
33 393 Tools. Shop And Garage Equip 7 MACR' 14.29%
34 394 L8bo¢8!ory Equip 7 MACR 14.29%
35 395 Power Operated Equipment 10 MACR 10.00%
36 396 Communication Equip 5 MACR 20.00%
37 397 Miscellaneous Equip, 10 MACR' 10.00%
38 397.1 Misc. Equipment CNG 25 SL 400%
39 398 Other Tangible Plant 25 SL 400%
40
41
42
43 Subtotal s 541,635 SS 10833 es s
44
45 903 Land and Land Rights 0 00% s s s s
46 904 Structures and Improvements 25 SL 4.00%
47 940 Ottice Fumsture and Fixtures 5 SL 14.29%
48 940. 1 Computers and Software 3 SL 33.33% 654,060 109,010
49 940.2 Customer First 3 SL 33.33%
50 955 Power Generation 25 SL 4.00%
51 995 Power Operated Equipment 25 SL 4.00%
52 997 Miscellaneous Equipment 26 SL 3.85%
53 Subtotal s 654.060 s 109.010 s s
54
55 Total $ 1,195.695 S 119.843 s .a (
56
57
58 PP RTIN H aesaexusnusi
59 Work papers B2, page 4
60
DECISION NO. 82134

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Docusign Envelope ID: D4125D706995-496BMOD33009702AD1 B
DOCKET NO. W-0I427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water 8 Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B2
Original Cost Rate Base Proforma Adjustments Page 8
Adjustment 6 Witness: Bourassa
x s m I t terr lncomeT x ADIT
Line
89
1
2
3
4 Accumulated Deterred lneome Tax Under New Tax Rates Asset (Liability) s (1 ,612.052)
5
6 Accumulated Deferred Income Tax Under New Tax Rates Asset (Liability) Per GL s (1 ,612.052)
7
8 Excess Accumulated Deferred income Tax EADIT s 0
9
10 TY EADIT Balance s (1.612.052)
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25 PP RTIN H D LE RECAP SCHEDULES:
26 E1 B2. page 2
27 Work Papers
28
29
30
DECISION no. 82134

Docusign Envelope ID: D41250708995496BAAOD33009702AD1 B
DOCKET NO. W-0I427A-25-0126. ET Al..
Llbarty uznnsn (Litchfield Park Water a. Sewer) Corp. Sewer Dlvislon Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B2
Original Cost Rate Bass Proforma Adjustments page 8.1
Adjustment 6 Witness: Bourassa
Line Last Rate Case Decision Water Sewer Total
MI
EADIT Balance 12.31.2017 2,031,159 2,236,878 4,268,037
2 Amortization Period: 27.03 25.06
3 Annual Amortization 75,145 89,261 164,406
4 Start Date: 1/1/2018 1/1/2018
5 Tax Rats: 24.870% 24.870%
6
7 EADIT Amortization Actlvity
Opening Ending
x Year Months Balance Amortization Balance
9 2018 12 2,236.878 89,261 2. 147,617
2019 12 2,147,617 89,261 2,058,356
10II 2020 12 2.058.356 89.261 1,969.095
12 2021 12 1,969,095 89.261 1,879,834
13 2022 12 1,879,834 89.261 1,790,574
14 2023 12 1,790,574 89.261 1,701 .313
15 2024 12 1,701 ,313 89.261 1.612.052
16
17
18
19
20
21
22
23 R CAP L :
24 B2. page 2
25
I
I
I
I
DECISION NO. 82134

Docusign Envelope ID; D41250706995496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B2
Original Cost Rate Base Proforma Adjustments Page 9
Adjustment 8 Witness: Bourassa
Sarival Accountinq Order
Line
ML
1
2
3
4 Net Sarival Plant Costs eligible for Deferral s 74,106,765
5 Composite useful life rate 4.68%
6
7 2024 Depreciation deferral 1,734,770
8
9 2025 Depreciation deferral 3,469,540
10
11 Total Sarival Accounting Order deferral s 5,204,310
12
13 Settlement Adjustment $
14
15
16
17
18
19 SUPPORTING SCHEDULES RECAP SCHEDULES:
20 Workpaper B2, page 2
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
DECISION NO. _§2134

Docusign Envelope ID: D4125D706995-496BAAOD33009702AD1 B
DOCKETNO. W-0I427A-25-0126. ETAL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Sewer Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule B~2
Original Cost Rate Base Proforma Adjustments Page 10
Adjustment 8 Witness: Bourassa
Unamortized Finance Charqes
Line
M
1
2
3
4 Settlement Unamortized Finance Charges $
5
6 Adjusted balance at End of Test Year 143,964.19
7
8 Increase (decrease) (143,964)
9
10
11
12
13
14
15
16
17
18
19 SUPPORTING SCHEDULES RECAP SCHEDULES:
20 Workpaper B2, page 2
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
DECISION no. 82134

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Docusign Envelope ID; D4125D706995-496BAAOD330D97D2AD1 B
DOCKET NO. W-0 I427A-25-0126. ET Al..
Liberty Utilities (Litchfield Park Water & Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31, 2024 Settlement Schedule C1
Income Statement Page 1
Witness: Bourassa
MQ Test Year Test Year Proposed Adjusted
Line Adjusted Adjusted Rate with Rate
Re It Adlystment Results In ase Increase
1 Revenues
2 Sewer Revenues s 20,846,881 21.569.086 s s 20,846,881 $ 10,015,953 s 30,862,834
3 Misc. Revenues 722.205 722.205 722,205
4 Total Operating Ravonun s s s 21 ,569,086 s 10.015,953 s 31 ,585.039
5 Operating Expenses
6 Salaries and Wages s s s s
7 Purchased Wastewater Treatment s 55.208 55,208 55,208
8 Sludge Removal s 590,826 590.826 590.826
g Purchased Power s 1.562.153 1,562,153 1 ,562, 153
10 Chemicals s 375.969 375,969 375.969
11 Fuel For Power Production s
12 Materials and Supplies s 196.533 196,533 196.533
13 Contractual Services Engineering s
14 Contractual Services Accounting s
15 Contractual Services Legal s 0 0 0
16 Contractual Services Management s 8,117.689 (304,130) 5,813,559 5.813.559
17 Contractual Services Testing s 74.905 (16,447) 58,459 58.459
18 Contractual Services Other s 593.245 14,946 608,191 608,191
19 Rental of Building/Real Property s
20 Rental of Equipment s 2.236 2.236 2,236
21 Transportation Expense s 43.618 43.618 43.618
22 Insurance Vehicle s 18,070 18,070 18.070
23 Insurance General Liability s 152.284 152,284 152,284
24 Advertising Expense s (0) (0) (0)
25 Reg. Commission Exp. Rate Case s
26 Reg. Commission Exp. Other s
27 Bad Deb! Expense s 38,508 (8,049) 30,459 25,931 56.390
28 Miscellaneous $ 151 ,244 151.244 151 .244
29 Depreciation & Amortization s 8.288.470 (301,710) 7,986,760 7.986.760
30 Taxes Other Than Income s (1,485) (1,485) (1,485)
31 Properly Taxes s 815,797 (31,480) 784.317 121,549 905,866
32 Income Tax s (228,417) 179,704 (48,714) 2,454,388 2.405.675
33 Customer Deposit Interest s 8,049 8,049 8,049
34 Total Operating Expenses s 18,846,854 s (467,165) s 18,387,738 s 2,601,868 s 20,989,606
35 Operating Income s 2.722.232 s 467.165 s 3,181 .348 s 7.414.085 s 10,595,433
36 Other Income (Expense)
37 Interest and Dividend Income
as AFUDC Income 977,226 977,226 977,226
39 Miscellaneous Non-Ulillty Expenses (93.561 ) (93,561 ) (93,561 )
40 Interest Expense (3.623.234) 205.473 (3.417,761 ) (3,417.761 )
41
42 Total Other Income (Expense) s (2.739.568) s 205.473 s (2.534,095) s s (2.534.095)
43 Net Profit (Loss) s (17336) s 672.638 s 647,253 s 7,414,085 s 8,061 .338
44
45 PPORTIN H DULE : R AP CH :
46 C1, page 2 A1
47 E2
48
DECISION NO.32134

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Docusign Envelope ID: D41250706995-496BAAOD33009702AD1 B
DOCKET NO. W-0I 427A-25-0126. ET AL.
Liberty Utilltles (Lltchfleld Park Water & Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31, 2024 Schedule C-2
Adjustments to Revenues and Expenses Page 1
Witness: Bourassa
Line dustm nls Rev n e nd Ex n
l Z _3 5 § § Sumozal
1 Contractual
2 Properly Contractual Svcs. Wastewater Customer Svcs
3 Qenrmée!!ps Taxes Mqmnt Exp. Testing Exp .Q§29§1LJQ..£§§! h x .
4 Revenues
5
6 Expenses (301,710) (31,480) (304,130) (16,447) 8,049 14,946 (630,771 )
7
8 Operating
9 Income 301,710 31 ,480 304,130 16,447 (8,049) (14,946) 630,771
10
11 Interest
12 Expense
13 Other
14 Income /
15 Expense
16
17 Net Income 301.710 31 ,480 304,130 16,447 (8,049) (14,946) 630,771
18
19
20 A u Tm nl I R v n n x n
21 z Q 3 LQ 11 .Q bl al
22 Intentionaly intentionaly Intentionaly Intentionaly Intentionaly
23 Bad Debt Left Left Left Left Left
24 5529_n.59 nk I nk I nk I nk nk
25 Revenues
26
27 Expenses (8,049) (638,820)
28
29 Operating
30 Income 8.049 638.820
31
32 Interest
33 Expense
34 Other
35 Income I
36 Expense
37
38 Net Income 8,049 638.820
39
40
41 Adustm nt R v n n E x n
42 13 L* 1991
43
44 Interest Income
45 Samson. L a m
46 Revenues
47
48 Expenses 179,704 (459.116)
49 1
50 Operating
51 Income (179,704) 459.116
52
53 Interest
54 Expense 205,473 205,473 i
55 Other
56 Income I
57 Expense
58
59 Net Income 205,473 .(1.79.7.°4z . n ._._ . _664,589
DECISION NO. 82134

Docusign Envelope ID: D4125070-6995496BAAOD33009702AD1B
DOCKET NO. W-0I 427A-25-0126. ET AL.
Llbof\y Ulllltkl (Lilchfiild P.rk Wnor & Sewer) Corp. Sewer Dlvlllon Exhlhll
Test Yom Ended December 31. 2024 SelllemoM Schedde C2
Adjustments lo Reveres and Exqaensas Page 2
AdyuslmeM Numb.r 1 Winless: Bourassa
Qgmmsnnma
LIIB
up.
1
2 Adjuuod NonDepr. Sonlomom Door
3 Acct Original or Fully Fully O¢pr Ovlglnd 42914 D22!!§!!\!2z
4 m . QMMEMQ c I r. rum PIA i n ; R u n E M C !
5 101 PlantnSomce 0, 00%
6 351 Organzahon (0) (0) 0.00%
7 352 Franchise 26.385 (26,385) 0.00%
a 353 Una 4,185.292 (4,185.292) 0.00%
9 354 Strudurusa lmpwvamerU 84,793,760 a4.79a,769 3.33% 2.823.632
10 355 Pour Genefalion 5,291,325 5.291 ,325 5.00% 264.566
355 1 Solar Genefalloh 6.67%
11 360 Colecuon Saws: Faced 13,310,537 13.310,537 2.00% 266,211
12 361 Collection Scwors Gravsty 52.871 .2a0 52.871 ,280 2.00% 1,057,426
13 362 Spousal Collootmg Structures 2.00%
14 363 Customs' Services 1,527,102 1,527,102 2.00% 30,542
15 364 FlowMeasmng Devices 172.125 (143,304) 28,821 10.00% 2.882
365 Flow Musing Inslnhtiuns 10.00%
16 366 RouseSefvicas 4,153,479 4,153,479 2.00% 83.070
17 367 Rome Meters And lnslalation 219,463 219,463 8.33% 18.281
18 370 Reeuvmgwells 1,072,640 1,072,640 3.33% 35,719
19 371 Pumping Equipment 8.412.269 (1.678.388) (2,451.551) 4,282.332 12.50% 535.292
20 374 Raul: Dslnbutial Reurvocn 1.697.915 1.697.915 2.50% 42.448
21 375 RouseTrans. and Dist. System 1,412,510 1,412,510 2.50% 35.313
22 380 Trellment A Disposal Eqwpmem 46,544,251 46,544,251 5.00% 2,327,213
23 380. 1 OdorControl GAC 0.00%
24 381 PlanlSowan 22,755,838 22.75s,a3a 5.00% 1.137.792
25 382 Oulfal Sewer Lives 343.881 343.681 3.33% 11,445
26 389 Omar Sew Punt 8 Equipment 839150 (755,285) 54,464 6.67% 3.633
27 390 Oreo Fumnuw a Equupmsm 450,113 (157. 124) 292.989 6.67% 19,542
28 390. 1 Ccmpulors and Sohwzro 389,012 (212.242) 176,770 20.®% 35.354
29 391 Transponalian Equipment 403,454 1331 ,474) 71 ,979 20.00% 14,396
30 392 Slams Eqmpmgm 8.988 8.968 4.00% 359
31 393 Tools. Shop And Garage Equip 644.191 644,191 5.00% 32.210
32 394 Laboratory Equip 225.315 (175,913) 49,402 10.00% 4,940
33 395 Power Openaled Equipment 500,203 500.203 5.00% 25,010
34 396 Communlontnon Equip 5,137,144 (391,611) 5.740,533 10.00% 574,053
35 397 Mscallnaoin Equip, 339,168 339.168 10.00% 33.917
as 397.1 Mac. Equipmuvl CNG 318,526 318.526 3.33% 10,607
37 398 Other Tangible Plan\ 79.028 79,028 100018 7,900
38 SUBTOTAL s 259.124,733 s (8.092,017) s (2,451,551) s 248,581,165 s 9.433.754
39
40 sos Land and Land Rig's s 31,777 s (37,777) s 0.00% s
41 904 Slruc\uvn and Improvements 1.355.038 1.355.038 2 56% 34,689
42 940 Ollie: Fmnnlun and Fmuras 316,384 316,384 4 00% 12.655
43 940.1 &mmMmsn&~nm 2.165.280 2,165,260 20.00% 433.062
44 940.2 Cmwmu FM 8.465.895 8,405,895 5.00% 423,295
45 955 Powsf Genuauon 1.014 1,014 5.00% 51
46 995 Power Operand Equipment 1s7.s01 167.601 5.00% 8.380
47 TOTALS s 271.633,701 s (8.\29.794) s 261.052.356 s 1o.a4s.a7s
4a
49 Nn0AmoR. O1
Lass: Amonlmlion of coruribmions Gross GIAC Fdlv Amoltlltd new CIAC Amannann
353 Land 1,795,220 (1,795,220) 00000%
352 Franchho 12,782 (12,782) 0.0000%
354 Structure and Impmvamants 15,933,143 15.931143 3.3300'h (530,514)
can Cclecllon Sewers Fame 8,422,589 8,422,558 2 ooooss (168,451)
361 Cclldlcln Scwlri Gnvlty 36.091.a01 36.097,301 2.000096 (721,948)
384 Flow Meesumg Davie's 49.448 (49,448) 10.000096
363 Customer Semen 3.014,026 3,014,026 2 ooooss (60,281)
371 P\I"91\9 Equiprngnl 287,461 (287,461) 12.500096
ago T1-Imam and Disposal 17,838,844 17,038 .844 s ooooss (8e1,942)
381 Pram Sewer 3,006,3a9 3. 006 .339 5.ooooss (150,311)
398 Other Tanglale Plant 13,750 (13,750) 6670098
50 s 86.270.883 4 (2,15a.ss2) s 84,112222 SI (2.513,511)
51 Amonizlhon of Enuss Doftntd Dcnriclllbfl
52 Loss: Amcmzation of EADIT 2,236,878 2.236.878 sssons (89261)
53 Add: Sarwal Depnndnailon Deism! Aooaullng 01119: s204,s10 4 sala% 243.656
54
55 Tau! Dspmdntlon Expend s 7,ses.7oo
56
57 Adjusted T-I Year Depnaciauon Expel 8,288.470
58
5g masse (deofsau) In Degroclamlon Expense (301.710)
60
$1 Adjustmorll Io Rewnuas and/or Expends s la01.710)
sz
83 m&rQanu§§§umm4:
64 B2.plge 3
DECISION NO. 82134

Docusign Envelope ID: D41250706995496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Lltchfleld Park Water 8. Sewer) Corp. - Sewer Dlvlslon Exhibit
Test Year Ended December 31, 2024 Schedule C2
Adjustment to Revenues and Expenses Page 3
Adjustment Number 2 Witness: Bourassa
Pro Taxe
Line Test Year Company
M DESCRIPTION as adjusted Recommended
1 Company Adjusted Test Year Revenues s 21 ,569,086 s 21 ,569.086
2 Weight Factor 2 2
3 Subtotal (Line 1 ' Line 2) 43,138, 172 43,138,172
4 Company Recommended Revenue 21 ,569,086 31 .585.039
5 Subtotal (Line 4 + Line 5) 64.707.258 74,723.211
6 Number of Years 3 3
7 Three Year Average (Line 5 I Line 6) 21 ,569,086 24,907,737
8 Department of Revenue Multiplier 2 2
9 Revenue Base Value (Line 7 l Line 8) 43,138, 172 49,815,474
10 Plus: 10% of CWIP (intentionally excluded)
11 Less: Net Book Value of Licensed Vehicles 51.582 51 ,582
12 Full Cash Value (Line 9 + Line 10 Line 11) 43,086,590 49,763,892
13 Assessment Ratio 15.5% 15.5%
14 Assessment Value (Line 12 ' Line 13) 6,678,421 7,713,403
15 Composite Property Tax Rate Obtained from ADOR 11.7440% 11.7440%
16 Test Year Adjusted Property Tax Expense (Line 14 ' Line 15) s 784.317 $ 905.866
17 Tax on Parcels
18 Total Property Taxes (Line 16 + Line 17) s 784.317
19 Test Year Property Taxes s 815,797
20 Adjustment to Test Year Property Taxes (Line 18 Line 19) s 31 ,480
21
22 Properly Tax on Company Recommended Revenue (Line 16 + Line 17) s 905.866
23 Company Test Year Adjusted Property Tax Expense (Line 18) S 784.317
24 Increase in Property TaxDue to Increase in Revenue Requirement 121,549
.
25
26 Increase in Property Tax Due to increase in Revenue Requirement (Line 24) s 121,549
27 Increase in Revenue Requirement s 10,015,953
28 Increase in Property Tax Per Dollar Increase in Revenue (Line 26 / Line 27) 1.21355%
29
30
31
32
33
34
35
36
37
38
39
40
l
l
82134 3
DECISION NO.
I

Docusign Envelope ID: D4125070-6995-496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. Sewer Division Exhibit
Test Year Ended April 30, 2023 Schedule C2
Adjustment to Revenues and Expenses Page 4
Adjustment Number 3 Witness: Bourassa
Contractual Services Management
Line
M
1
2 Settlement Contractual Services Management s 5,813,559
3
4 Adjusted TY Contractual Services Management $ 6,117,689
5
6 Increase (decrease) in Contracuel Services Management s (304,130)
7
8
9
10
11 Reference
12 Testimony
13 Work Papers
14
15
16
17
18
19
20
21
22
23
24
25
DFCISION NO. 82134

Docusign Envelope ID: D4125070»6995-496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Sewer Division Exhibit
Test Year Ended December 31, 2024 Schedule C2
Adjustment to Revenues and Expenses Page 5
Adjustment Number 4 Witness: Bourassa
Wastewater Testinq
Line
ML
1
2
3
4 Settlement Contractual Services Testing $ 58,459
5
6 Adjusted TY Contractual Services Testing 74,905
7
8 increase (decrease) in Contracual Services Management s 16,447
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
l
82134
DECISION NO.

Docusign Envelope ID: D41250706995496BAAOD330097 D2AD 1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Sewer Division Exhibit
Test Year Ended December 31, 2024 Schedule C2
AdJustment to Revenues and Expenses Page 6
Adjustment Number 5 Witness: Bourassa
Customer Deposit Interest
Line
M
1
2
3
4 Settlement Contractual Services Other $ 8,049
5
6 Adjusted Test Year Customer Deposit Interest
7
8 Increase (decrease) in Contracual Services - Management s 8,049
g
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
I
I
DECISION NO. 82134
I

Docusign Envelope ID: D41250706995-496BAAOD330D97D2AD1 B
DOCKET NO. W-01427A-25-0126, ET AL.
Liberty Utilities (Litchfield Park Water a. Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31, 2024 Schedule C2
Adjustment to Revenues and Expenses Page 7
Adjustment Number 6 Witness: Bourassa
contractual Services Other
Line
ML
1
2
3
4 Settlement Contractual Services Other s 608,191
5
6 Adjusted TY Contractual Services - Other 593.245
7
8 Increase (decrease) in Contracual Services Management $ 14,946
g
10
11
12
13
14
15
16
17
18
19
20 Reference
21 Testimony
22 H1
23
24
DECISION NO. 82134
1i

Docusign Envelope ID: D41250706995-496BAAOD330D97D2AD1B
DOCKETNO. W-()l427A-25-0126. ETAL.
Liberty Utilities (Litchfield Park Water a Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31, 2024 Schedule C2
Adjustment to Revenues and Expenses Page 8
Adjustment Number 7 Witness: Bourassa
dDebtE n
Bad Debt Proposed
Line Revenues Expense Rate Rate
No.
1 Bad Debt Rate 2022 s 18,928,017 s (2,891) -0.015%
2 Bad Debi Rate 2023 s 23,417,997 s 138,546 0.592% i
3 Bad Debt Rate 2024 $ 21,417,214 s (8,726) 0.041% i1
4 i
5 Average of three year's of bad debt expense rate 0.179% 0.179%
6
7 Aaiusaea TY Proposed
8 1
l
9 Revenues $ 21,569,086 s 31 ,585,039 l
10
11 Computed Bad Debt Expense $ 38,508 $ 56,390
12
13
14 Computed Bad Debt Expense s 38,508
ll
15 Test Year Bad Debt Expense 38,508.40
16 Change in Bad Debt Expense s
17 W
18 Bad Debt Expense on Company recommended revenue $ 56.390
19 Company Test Year Adjusted Bad Debt Expense $ 38.508
20 Settlement Adjustment $ (8,049) i
21 Increase in Bad Debt due to Increase in Revenue Requirement s. 25,931. i
i
22
23 Increase in Bad Debt Expense Due to Increase in Revenue Requirement $ 25,931
i
24 Increase in Revenue Requirement s 10,015,953 i
25 Increase in Bad Debt Expense Per Dollar Increase in Revenue 0.25890%
i
i
l
ll
i
l
i
\
I
82134
DECISION no.

Docusign Envelope lo. D4125070-6995-496BMOD33009702AD1 B
DOCKET NO. W-0 I427A-25-()126. ET Al..
Liberty Utilities (Litchfield Park Water a. Sewer) Corp. - Sewer Division Exhibit
Test Year Ended April 30. 2023 Schedule C2
Adjustment to Revenues and Expenses Page 9
Adjustment Number 8 Witness: Bourassa
Intentionally Left Blank
Line
N i
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
DECISION NO. 82134

Docusign Envelope ID; D41250706995496BAAOD330D97D2AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water a. Sewer) Corp. - Sewer Division Exhibit
Test Year Ended December 31, 2024 Schedule C-2
Adjustment to Revenues and Expenses Page 10
Adjustment Number 9 Witness: Bourassa
intentionally Left Blank
Llne
M
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
82134
DECISION no.

Docusign Envelope ID: D41250706995-496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. Sewer Division Exhibit
Test Year Ended December 31, 2024 Schedule C2
Adjustment to Revenues and Expenses Page 11
Adjustment Number 10 Witness: Bourassa
Intentionally Left Blank
Line
M
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
l
l
82134
DECISION NO.
l

Docusign Envelope ID: D4125D706995-496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water a. Sewer) Corp. - Sewer Division Exhibit
Test Year Ended December 31, 2024 Schedule C2
Adjustment to Revenues and Expenses Page 12
Witness: Bourassa
intentionally Left Blank
Line
M L
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23 Reference
24 Testimony
25 Work Papers
i
i
i
1i
1
DECISION NO. 82134

Docusign Envelope ID; D4125070-6995-496BAAOD33009702AD1 B
4
DO(IKI;T NO. W-0 I427A-25-0l26. ET AL.
Liberty UtIIItles (Litchfield Park Water 8- Sewer) Corp. Sewer Dlvtsion Exhibit
Test Year Ended December 31, 2024 Schedule C2
Adjustment to Revenues and Expenses Page 13
Adjustment Number 12 Witness: Bourassa
Intentionally Left Blank
Line
M
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 Reference
22 Testimony
23 Work Papers
24
82134 I
DECISION no. II
I

Docusign Envelope ID; D41250706995496BAAOD33009702AD1 B
DOCKET no. W-0I 427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. Sewer Division Exhibit
Test Year Ended April 30. 2023 Settlement Schedule C2
Rate Case Expense Surcharge Page 14
Witness: Bourassa
Rate Case Expense Surcharaqe
Line
M
1
2 Remove TY Rate Case expense s
3
4 Adjustment to Revenue and/or Expense
.
5
6
7 Proposed Rate Case Expense Surcharqe
8
g Estimated Rate Case Expense s 228,000
10
11 Estimated Amortization Period in Years 3
12
13 Annual Rate Case Expense s 76,000
14
15 YE number of customers 24,205
16
17 Monthly Surcharge s 0.26
18
19
20
21
22 Reference
23 Testimony
24
25
i
82134
DECISION NO.

Docusign Envelope ID: D41250706995-496BMOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Sewer Division Exhibit
Test Year Ended December 31, 2024 Schedule C-2
Adjustment to Revenues and Expenses Page 15
Adjustment Number 13 Witness: Bourassa
Interest Synchronization
Line
M
1
2
3
4 Fair Value Rate Base $ 136,328,067
5 Weighted Cost of Debt 2.51%
6 Settlement Interest Expense $ 3,417,761
7
8 Adjusted Test Year Interest Expense $ (3.623,234)
9
10 Increase (decrease) in interest Expense (205,473)
11
12
13
14 Adjustment to Revenue and/or Expense $ 205,473
15
16
17 lunlammisgagtmnmnmniiianm
18 ernimnasmaisinmuin Weighted
19 Bement 9951 9951
20 Debt 46.00% 5.45% 2.51%
21 Equity 54.00% 9.75% 5.27%
22 Total 100.00% 7.77%
23
24
25
26
27
28
29
30
DECISION NO. 82134

Docusign Envelope ID: D4125070-6995-496BAAOD33009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Llberty Utllltles (Litchfield Park Water 8. Sewer) Corp. Sewer Divlsion Exhibit
Test Year Ended December 31. 2024 Schedule C2
Adjustment to Revenues andlor Expenses Page 16
Adjustment Number 14 Witness: Bourassa
Line
M
1 In Tax s
2 Test Year Test Year
3 £L&¢!M!.8£!2! as rm ng s wrtn
4 Computed Income Tax s (48,714) s 2.405.675
5 Test Year lnoome tax Expense (228.417) (48,714)
6 Adjustment to Income Tax Expense 179,704_ s 2,454,388
7
a
g
10
11
12
13 UPPORTIN s HE
14 C3, page 2
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
DECISION NO. 82134

Docusign Envelope ID: D4125070-6995496BAAOD33009702AD1 B
DOCKET no. W-0I427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Sewer Division Exhibit
Test Year Ended December 31, 2024 Schedule C-3
Computation of Gross Revenue Conversion Factor Page 1
Witness: Bourassa
Percentage
of
Incremental
Line Gross
M Description Revenues
1 Combined Federal and State Effective Income Tax Rate 24 .871 %
2
a Uncollectible Factor 0.195%
4
5 Property Tax Factor 0.912%
6
7
8 Total Tax Percentage 25.977%
g
10 Operating Income % = 100% - Tax Percentage 74.023%
11
12
13
14
15 1 = Gross Revenue Conversion Factor
16 Operating Income % 1.3509
17
18
19
20
21
22
23
24
25
26
27 SUPPORTING SCHEDULES: RECAP $CHEDULES:
28 C-3, page 2 A~1
29
30
31
32
33
34
35
36
37
38
39
40
41
42
82134
DECISION no.

Dccusigrl Envelope ID: D4125D706995-496BMOD330097 D2AD 1 B
DOCKET NO. W-0I 427A-25-0126, ET AL.
Uheny U\iMI.1 (Lhchfiold Punk Wuor A Sewer) Com. Scwov Dwhlon
To! Your Ended Doclmhov 31. 2024 ;;":llc3
Plge 2
Want: Baun-
GROSS nsveuuf CONVERSION ncvon
Ln: w (Be (C) (0) run m
m. ammo
o f n¢Qean¢ml¢¢saamnnnnrum
1 Row run 1w .0000%
2 Unealcchhlo Factor (Lho 11) 0.194554
a Rsvumu (L1 . L2) 99 805558
4 Ccmbnad Fndanl .no sun lnoomo TU .no pwwv TU Run (Lho 23) 2s.1az7%
s suunnui (LE LA) 74 022858
c Ruvonuo Ccnwnbn Fxtov (L1 ILS) 1.350938
Qmun~ummnwm~mm
7 camry 100000058
a cnmnnaha-um so. TU n.l!(l.11) 21 811096
9 OneMlMnCOmbl\ldlneNmeTaxR.le(L7LB) 15 1290%
10 Unoolwthh RMQ 0.2589%
11 Uneouam¢F¢oav(L9l.10l 0.194598
amnmatmzamnlanm
12 Opcrlhng hcumi Boon T..ns (Alton. Tluhlo haomo) soooauoss
13 Alan State lneann T.: R.\o 4 eoocss
14 Federal l1l.hlg lhctlms (L 12 L 13) 95 100096
15 Apnklbb Fe4sral hcunw Tax Rub (L56. Cd E) 21 oouo
16 Efkdivt Fld.f.l Nleunu TU Rua (LIE I LI5) 19.971095
17 commas #un Ana slnu Incnma Tax Rn. (LI3 »L 1st 24871074
Q$uHmadfM~ma1~mumlujnmu
1a Ul\IY 1000000%
19 Comnhad Fodovll and sun henna T.: R.l. (LU) 24 a110ns
20 Of Mm - Com hlld m um Tax Ran (L 1lL19) 75.129098
21 Fvunny T.: Facto' 1.298%
22 sum" putnem T.: Fldnf (L20L21) 0.ev 11%
23 Combined Fedovul and Stale I1IGUIYQ TU lM P"w °f\v Tax Rank (L 11*L22) zs nz7s s
24 Rafauud 00l*\0 lwom s s s 1o.a0s.4:u
2s Mp .1 .6 viz Y-r Opnuhng hcuml (Lou) s 3,181 :us
26 Rwwid Ileluau h Opanlhng lm:nm0 (L2A . L25) x 3,111,318 s 7,414,015
27 lntulflt Tun on Roeonlnanded Rnvanui (Col (E). L62) s 2.405.675
za locum Tues on Tad Y-1 Rlnnuc (Col, (B), L54) s (48 714)
29 Rnqulud Mann on Ravonuo lo Provndc for hmm: Tun (L27 . L28) s 7454.388
ao Fheamnndnxi Ruwnw Rcquilsmonl s a1.sas,ns0
31 Uncolccthle RM (Lino 10) o guess
s z UncnlaaiNhExpe onRlcn ndcdR 424L25) 81,773
ss
as Mound 1-1 YO.: Uncnlsdhlo Eipens. 30,459
M Rnquhd Mann h Fswvu. Io FvuvMc low uwauunu EW s 51.313
35 Pvupony TU wan H.G0l1ll\ondl6 Rlvonuo s sos.aes
to Property Tll on 7m Yur RE W s TM 317
37 lnanu m paper Tux Duo lo Manu n Revsnm nanny s 121.549
JB ToulRaqullsdlnela.lolnRannu¢(L2S° L29* L37) 8 10041338
A F
.4 .
n o n u
Qn~mndm~mLhm
so R . - s 21,569,086 s 21.se9.ou s 31.581039 s 31515.039
W 0 p m E 1a &dumb hcomo Tam and www amonunlon s 1a.a41.191 s \8.317.\91 s 1a.494 .s1o s 10,494,670
41 Synowunnzaa lmauasl (L47) s 3417701 x 3.417 761 s 3417 761 s 3417 761
42 AIUnn.Tlx.hlelneom e(L39L40L41) s (195,856) s m ous e; s 9.a12.e09 s 9.872.109
43 Anson. Sum Elhcnva uwuun Tax Ran 4, U 4, as 91 4. l l 4. 1 ' man
u Asana lneamn TU (L42 l L43) s (9597) s (9,597) s 473.958 s 413,955
45 ha-l Tnuhh score (L42 L u ) s ( 19.2%) s 405185) s 9.191.651 s 0.1ul.ss1 .I
4 6 F¢ d l .l Ma n n TU R .\. 21 nose 21,0056 21 00% 21 .00%
47 Fmuu henna Tax (Ll5lL4$) 39116 H E 1 9 1 117 1 931 711
48 Comhhtd Fe¢old aM Sl.\. hncnil 7.1 (L35 * L 42) r.ll.......unnmr.llluxnn I -K FX J I Irtzrtni I H
w mamssn Auvne.vl» Fodclll Mum. Tlx Ran fcov. run. u1 can Vu L47 /1001 IDI. L45 Cd. W. L45l z1 ouools
so INMIEENA IEB Awe.nu Fldenl Menu Tax Rlh IC0l. [EL L47 . w. 181 L47| I lw. mr Las . Cd. WI. L45l 21 oooos
51 IMAIEB Appuonu haul lncnmt To R.t¢ [Cot p=l. L47 . Cd. \cl, url l (ca. rI. L45 . of ICI. us ] 00000%
s a w
52 Rate Bar s 136,328,087
so welghud Awflgo COM of Dahl zrsow ss
54 Sylldlunlzald mm-1 (L45 x L46) [ll.lEIullllllll
82134
DECISION NO.
\

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3
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3

Docusign Envelope ID: D4125D70-6995496BAAOD330097D2AD1 B
DOCKET NO. W-01427A-25-0126, ET AL.
Llbeny Utllltles (Lltchfleld Park Water & Sewer) Corp. - Sewer Dlvlslon Exhibit
Test Year Ended December 31, 2024 Settlement Schedule D-3
Cost of Preferred Stock Page 1
Witness: Bourassa
Line
.N&
1 End of Test Year End of Projected Year
2
3 Description Shares Dividend Shares Dividend
4 of Issue Outstanding Amount Requirement Outstanding Amount Requirement
5
6
7 NOT APPLICABLE, NO PREFERRED STOCK ISSUED OR OUTSTANDING
8
9
10
11
12
13
14
15
16
17
18
19
20
21 PPORTING H DUL : RECAP SCHEDULES:
22 E 1 D 1
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
82134
DECISION NO.

Docusign Envelope ID: D41250708995496BAAOD33009702AD1B
DOCKET NO. W-0I 427A-25-0126. ET AL.
Llberty Utilities (Lltchfleld Park Water 8, Sewer) Corp. Sewer Dlvislon Exhibit
Test Year Ended December 31, 2024 Settlement Schedule D-4
Cost of Common Equity Page 1
Witness: Bourassa
Line
fig*
1
2 The Company is proposing a cost of common equity of 9.75%
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17 SUPPORTING SCHEDULES: RECAP SCHEDULES:
18 E 1 D 1
19 D4.1 to D~4.16
20
DECISION NO.82134

Docusign Envelope ID: D4125D706995-496BAAOD330097 D2AD 1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water a Sewer) Corp. Sewer Division Exhibit
Revenue Sumnary Settlement Schedule l+1
with Annuatuea Revenues to Year End Number of Customers Page 1
Test Year Ended December 31. 2024 Witness: Bouessa
Percent Percent
of of
Present Proposed
Line Present Proposed Dolar Percent Sewer Sewer
_No Customer Classification Revenues Rev n Ch Qhennz R von Revenues
1 Residential s 12,706.853 s 18.621 .893 s 5.915.040 46.55% 58.91% 58.96%
2 Residential HOA 133 72,191 105,796 33,605 46.55% 0.33% 0.33%
a Residential HOA 134 72.734 106.591 33.857 46.55% 0.34% 0.34%
4 Residential HOA 138 74,905 109,773 34,868 46.55% 0.35% 0.35%
5 Residential HOA 160 86.846 127,273 40,427 46.55% 0.40% 0.40%
6 Resldentual HOA 520 282,250 413.637 131.387 46. % 1.31% 1.31%
7 Subtotal s 13.295178 s 19.484.962 s 6.189.185 46.55% 61 .64% 61 .69%
8
g MultiUnit Housing
10 MuNiUmt 3 s 75,587 s 110,772 s 35,186 46.55% 0.35% 0.35%
11 MuNiUnit 4 22,172 32.493 10,321 46.55% 0.10% 0.10%
12 MuNiUnit 5 5.039 7,385 2,346 46.55% 0.02% 0.02%
13 MdiiUml 7 14.110 20.678 6,568 46.55% 0.07% 0.07%
14 MattiUml 8 129.001 189,052 60.050 46.55% 0.60% 0.60%
15 MuirUral 9 4.535 6,646 2,111 46 55% 0.02% 0.02%
16 munsunn 10 5.039 7,385 2.346 46.55% 0.02% 0.02%
17 MolliUnit 14 77,602 113,726 36,124 46.55% 0.36% 0.36%
18 MultiUnit 16 330.566 484,445 153.879 46.55% 1.53% 1.53%
1 g MultiUnit 17 8,567 12.554 3,988 46.55% 0.04% 0.04%
20 mumuna: 1B 9,070 13,293 4,222 46.55% 0.04% 0.04%
21 MuNiUnit 21 10,582 15,508 4,926 46.55% 0.05% 0.05%
22 MdiiUnit 22 11.086 16,247 5,161 46.55% 0 05% 0.05%
23 MdiiLhi( 23 11,590 16.985 5,395 46.55% 0.05% 0.05%
24 MultiUnit 24 24,188 35,447 11,259 46.55% 0.11% 0.11%
25 MolliLklil 45 22,676 33,232 10,556 46.55% 0.11% 0.11%
26 MultiUnit 46 23,180 33,970 10,790 46.55% 0.11% 0.11%
27 MultiUnit 48 24,188 35.447 11,259 46.55% 0.11% 0.11%
28 MuMUnit 64 32,250 47,263 15,013 46.55% 0.15% 0.15%
29 Muniunn 83 83.649 122.588 38.939 46.55% 0.39% 039%
30 MdiiUnit 84 42,329 62.033 19,704 46.55% 0.20% 0.20%
31 MdiiUni( 90 136,056 199,390 63,334 46.55% 0.63% 0.63%
32 muniumm 111 55,934 81 .972 26,037 46.55% 0.26% 0.26%
33 MuesliUnil 125 62,989 92,310 29.321 46.55% 0.29% 029%
34 MultiUnit 126 63,493 93.049 29.556 46.55% 0.29% 0.29%
35 MuNiUrut 132 199,549 292,439 92.890 46.55% 0993% 0 93%
38 Minaum 167 84,153 123.327 39.173 46.55% 0.39% 0.39%
31 MuniUrui 184 92.720 135.881 43,161 46.55% 0.43% 0.43%
38 MuniUnit 188 94,735 138.835 44,099 46.55% 0.44% 0.44%
39 MuniUnit 224 112,876 165,420 52,544 46.55% 0.52% 0.52%
40 MuniUnit 288 144,119 211 .206 67.087 46.55% 0 67% 0.67%
41 MUMLki! 304 153.189 224.499 71 ,310 46.55% 071% 0.71%
42 MuNiUnN 326 164,275 240,745 76,470 46.55% 0.78% 0.76%
43 n e w t 3 5 2 73,907 108,311 34,404 46.55% 0.34% 0.34%
44
45 Subtotal s 2,405,004 s 3,524,533 s 1,119,529 46.55% 11.15% 11.16%
46
47 Small Commercial s 93,479 s 136.994 43.515 46.55% 0.43% 0.43%
48 Measured Service:
49 Regular Domestic s 1,871,984 s 2.857.866 985,882 52.87% 8.68% 9.05%
50 Regular Domestic Ir\11uent 2,122,889 3,251,004 1,128.115 53.14% 9.84% 10.29%
51 Restaurant, Motels. Grocery. Dry Cleaning 531,541 810,661 27_9,120 52.51% 2.46% 2.57%
52 Subtotal s 4,526,414 s 6,919,531 s 2,393.116 52.87% 20.99% 21 .91%
53
54 Wigwam Resort Per Room s 166.795 s 254.446 s 87,651 52.55% 0.77% 0.81%
55 Wigwam Resort Main 19,956 30,442 10.487 52.55% 0.09% 0.10%
so Subtotal s 186,750 s 284,888 s 98,137 52.55% 0.87% 0.90%
57
58 Elementary SChOOlS s 81,418 s 124.204 s 42.785 52.55% 0.38% 0.39%
59 Middle and High Schools 95.787 146,122 50,336 52.55% 0.44% 0.46%
60 Conmunity College 24,745 37,748 13.003 52.55% 0.11% 0.12%
61 Subtotal s 201,950 s 308.074 s 106.125 52.55% 0.94% 0.98%
62
63
64 Total Revenues Below Revenues Annualizatlon s 20,709,376 s 30,658,982 s 9.949.607 48.04% 96.01% 97.07%
DECISION NO. 82134

Docusign Envelope ID.0412507069954968m0033009102A01B
D O C K E T N O . W-0 1427A-25-0126, ET AL.
Liberty Uttttttes (Litchfield Park Water 8- Sewer) Corp. Sewer Dwtsbn Exhibit
RevenueSurrmary SettlemerN Schedule H1
with Annualized Revenues lo Year End Number of Customers Page 2
TestYear Ended Decerrber 31, 2024 Witness: Bouassa
Percent Percent
of of
Present Proposed
Line Present Proposed Door Percent Sewer Sewer
8 _ £u§tsz.mzL.Q!ant!ts \ Revenues Revenues Chang; Qhmng B!V.£1.\!!! ven I
1
2 l3:xnns&AmJI¢ahzan9n
a Resudentnal s 63.868 s 93.599 s 29,731 46.55% 0,30% 0.30%
4 munsum 0.00% 0.00% 0.00%
s Snell Commercial 1.071 1.569 499 46.55% 0.00% 0 00%
6 Measured Service:
7 Regular Domestic 15.742 24.029 8.288 52.65% 0.07% 0.08%
B RegularDomestic Inherent 54.939 84.137 29,197 53.14% 0.25% 0.27%
9 Restaurant. Motels,Grocery. Dry Clearing (498) (760) (262) 52.58% 0 00% 0 00%
10
11 SubtotalRevenue Annuahnuon T 135.135 s 202,514 s 67452 49.92% 033% 0649?
12
13 Effkxent Revenues s 59.035 s 59.035 0.00% 0.27% 0.19%
14
15 M.l§.Q.&naa.B§x§n1a§
16 Adjusted Misc Revenues s 663.170 s 663.170 s 0 00% 3.07% 2.10%
17 Reconciling Amount to C1 2.384 1 ,278 (1.106) 46.39% 0.01% 0.00%
18 Totals s 21 ,569.086 s 31.585.039 s 10,015,953 46.44% 100.00% 100.00%
19
20
21
22
23 Bexnmasgggmaaw
24 Flat and Metered Revenues Per GL s 20,711,759
25
26
27 Aapsnea Total s 20,711 ,759
28
29 BC Revenue Before Amualmlion s 20,709.376
30
31 Difference s 2.383
32
33 % Difference 0.01 %
34
35 Tolerance (#l 1 l2%) s 103,559
36
31
38
39
40
41
42
43
44
45
46
DECISION NO. 82134

Docusign Envelope ID: D4125D70-6995-496BAAOD330D97D2AD1 B
DOCKET NO. W-01427A-25-()l26. ET AL.
Liberty Uttlitles (LMhfleld Park Water & Sewer) Corp. Sewer Dwlsion Settlement Schedule H2
Test Year Ended December 31, 2024 Page 2
Analysis of Monthly Bill Impacts by Detailed Class Witness: Bourussa
Average
Numb.r of
Customers Average Bill Pro ncrea.
Line Customer l t Average Present Proposed Dollar Porcehl
89 Clusltfgetion 12/31/2024 W e I e s o ; M n ; ems um 4 2 4
1 Ressdertial 23,528 NIA s 45.23 s 66.29 s 21 06 46 550%
2 Resnderlnal HOA 133 1 N/A 6,015.90 8,816.31 2.800 40 46.55096
3 ResȢentla1 HOA 134 1 NIA 6,061 .13 8,882.59 2.821 46 46,550%
4 Ressdenhal HOA 138 1 NIA 6,242.06 9.147.75 2.905.68 46.550%
5 Resndedlal HOA 160 1 NJA 7,237.18 10,606.08 3,368.91 46 550%
6 Res»dentlaIHOA 520 1 NIA 23,520.82 34,469 76 10.948 94 46.sso%
1
8 MdUUI\i1 Housing Resudentld
9 nun-unn 3 50 NJA s 125.98 s 184.62 s 58.64 46.550%
10 M1111UM 4 11 NIA 167.97 246.16 78.19 46.550%
11 MlltiUM5 2 N/A 209.96 307.70 97 74 46.550%
12 mumum 7 4 N/A 293.95 430.78 136.83 46.550%
13 MaiNUM 8 32 NJA 33594 492.32 158.38 46 550%
14 MulhUm9 1 NIA 377.93 553.86 175.93 46.550%
15 MuNiUna 10 1 N/A 419.93 615.40 195,48 46.550%
16 MultiUnit 14 11 N/A 587.90 861.56 273.67 46.550%
17 MultiUM 16 41 N/A 671 .88 984.64 312.76 46.550%
18 MphLlnd 17 1 N/A 713.88 1.046.18 332.31 46.550%
19 num-una 18 1 N'A 755.87 1,107.72 351.86 46,550%
20 m u m 2 1 1 N/A 881 85 1,292.35 410.50 46.550%
21 MumUnn 22 1 NIA 923.84 1.353.89 430 05 46.550%
22 wwn n 2 3 1 NJA 965.83 1,415.43 449.59 46.550%
23 muuna 24 2 NIA 1,007.82 1.47697 469,14 46.5so%
24 n m - u n u s 1 NIA 1,88967 2,789.31 879.64 46 550%
25 nunuraa 46 1 N/A 1,931 .66 2,830.85 899.19 46.550%
26 mumum 48 1 N/A 2,015.65 2,953.93 938.28 46 550%
27 MuMUnit 64 1 NIA 2,687.53 3,938.58 1.251 .05 46.550%
28 munum 83 2 NIA 3,485.39 s,107.a4 1.622 45 46.550%
29 Murwm 84 1 WA 3,527.38 5,169.38 1,642.00 46.550%
30 MoltoUnft 90 3 NIA 3,779.34 5,538.62 1,759.28 46 550%
31 Multi4Jnn 111 1 N.'A 4,661 .19 6,830.97 2.169.78 46.550%
32 mumunn 125 1 N/A 5,249.08 7,692.53 2,443.45 46.550%
33 MobUM 126 1 WA 5,291 .08 7,754.07 2.46300 46.550%
34 MultiUrl! 132 3 NIA 5,54:s.03 8.123.31 2,580.28 46.550%
35 Mumunn 167 1 N/A 7,012.77 10,277.22 3,264.45 48.550%
36 MdtiUI\l1 184 1 N/A 7,726 es 11,323.40 3,596.76 46.550%
37 M.l\l~Ur\il 188 1 N/A 7.894 62 11,569.57 3,674.95 46.550%
38 mu-um 224 1 N/A 9,406.36 13,785.01 4,378.66 46.550%
39 MphiJm 286 1 WA 12.00990 17,600.51 5,590.61 46.550%
40 mumuna 304 1 N/A 12165.71 18,708.23 5,942.47 46.550%
41 Gunnum 326 1 N/A 13,689.61 20.06212 6,372.51 46.5w%
42 Muitu-Um 352 0 NIA 14,781 42 21 ,682 17 6.880 75 46 550%
43 Subold 183
44
45 Smal Commercial 102 WA s 76.50 s 112.11 s 35.61 46.550%
48 Measled Service:
47 Regular Domestic 268 144,538 s 582 81 s 889.75 s 306.94 52.66596
48 Regdal Domestic lrlkserN 6 6.393.441 29.89984 45188.79 15,888.94 53.10%
49 Restaurant, Motels, Glocery, Dry Cleaning 100 83.359 442.58 674.99 232.41 52.511%
50
51 Wigwam Rum Per Room 1 WA s 13,899.57 s 21203.79 s 7,304.22 52.550%
52 Wigwam Resort mm 1 WA 1 .682.97 2.536.86 873.89 s2.sso%
53
54 Elementary Schools 6 N/A s 1.130.81 s 1,725.05 s 594.24 52.550%
55 riddle and rush Schools 6 NIA 1,330 2.029 699.11 52.55058
56 Community Coltego 1 NIA 2,062 3,146 1 ,083.62 52.550%
57
so
59
60
61 Total 24 201
62
63
DECISION no. _ 82134

Docusign Envelope ID D4125070-6995496BAAOD33009702AD1 B
DOCKET NO. W-0I 427A-25-0126. ET AL.
Llbony Ulitnln (Lltchfhld P.r\\ Wutnr I Srwof) Corp. Stwunwswn Schuman 548151118 H2
To! Ya.: Ended Dwembef 31 . 2024 Page 1
Aluipis of Gunn Bel mpxs by Dcaauw can Wnuaa: Beans .
hdldilq Rule Casa Elwenss Sudnrm
Average
Numhofol
9 2 1 8 2 0 1 A m e r ! mmwnm
Linc Cul\om.r at Awe' P a - n l Prapoud IC Expo.. Tool Pin. Door Poncm
us . sannmomn 1 lJ\ 4 Wehr Un E t ! ! ! MM rch: n m Amen: Menu
1 Ruideuiial N'A s 45.23 s 6629 s 026 s M 5 5 s 21.32 4712*
23.5281
2 Rntodeltal HOA 133 NIA s m s 90 8,816.31 026 8.816 57 2100.68 4.55%
3 Rwdenaal HOA 134 1 N/A s.os1 13 8,882.59 obs s nz 85 2,821.72 W 8%
4 Rsudulial HOA 138 1 N/A 6242.06 9,147 76 026 0,14801 2,905.94 4.5%
5 Rwdcnhal HOW too 1 NIA 7237.\8 10.806 os 0.26 10,60634 s.aa9.17 46 55*
6 Rnidaunal HOA 520 1 NIA 23.5W8U 34460.76 026 M,470.02 10.94920 468%
7
o wuwm Hous ing Rnlam lal
e M\.l.l.hy( 3 50 NIA s 12598 s 184 82 s 026 s 18458 s 5890 46 78%
10 MMAUNI4 11 N/A 157 97 246.15 026 246.42 7a 15 48.70%
11 hm m m 5 2 NIA 20996 307.70 0.26 307.96 9800 4667%
12 MaliUni 7 4 NIA 293 as 43078 026 431.04 13709 46 64%
13 M\.lUN1 a 32 NIA 33594 492 32 0.26 492 so 1 M M 46,63%
14 muuum 9 1 NIA 37793 asana 026 554 12 176 19 48 s ax
15 Mm.una 10 1 WA 41993 81540 026 61566 195 74 46 01 %
16 nuwmx 14 11 NIA 587 90 861 so 026 86182 273.93 46.59%
17 Mol:LINl 16 41 NIA 671 as s o 64 026 90490 313.02 46 50%
1B MINUlll 11 NIA 713 as 1.04616 026 1,046M 33257 4659%
11
10 MinUr1l is NIA 75587 1,101.12 026 1.10198 352 12 46.58%
20 GA.:UM 21 1 N/A 881 85 1202.35 026 129251 410,76 46 56%
21 m uwnx z2 11 NIA 923.84 1.35389 026 1,354 15 430.31 46.56%
22 m m 2 3 NIA eos 83 1,41543 0.26 1 .41569 449.85 46.58%
23 mn1um 24 NIA 1.001.a2 1.47697 026 147123 48940 46 seas
24 MWUvll 45 211 NIA 1.88967 2.70931 026 2.76957 87990 46.56%
25 m w u vn u s NIA 1.931 so zs 3085 026 2,831 11 89945 48 56%
2s #AlaUIII 48 1 NIA 2,015.85 2.95393 026 2.954.19 938.54 48.56%
27 MIIUI.164 1 N/A 2,687.53 3.93056 026 :Lean B4 1251.31 46 s ex
zo m m B E NIA 3,485 39 5.107u 026 5,108 10 1,822 71 46 56%
21
29 IAIMMIB4 WA 3,627.38 5.169.138 026 5, 169 M 1.64226 46 use
ao MlleUM so WA 3,779.34 5.53862 026 5,53888 1,75954 46 seas
31
31 mm4Jm 111 NIA 4.661 .19 u s o 9 7 026 6.83123 2.17004 4656%
32 MINlhvl 125 1 N/A 5.249 oe 7.89253 026 7.692 is 2.44171 46.55%
33 Mulllhrl 126 1 WA 5291.00 7,754.07 0.26 7.75433 2,483.28 46.55%
34 mmum 132 N/A 5.543 03 a. 123 31 026 8. 12357 2.s80.54 46 55%
31
35 mmuna 187 NIA 7,012.77 10.27722 026 10271.48 3264.71 46.55%
so MQIMV1 184 1 WA 7,726.85 11,323.40 026 11.32300 1597.02 4655%
37 m m 1 8 8 1 NIA 7.594 az 11.56957 0.26 11.56983 107511 4655%
38 i n u n n 2 2 4 1 NIA 0.406 as 1a.1a5.01 026 13.70527 4.378 92 46.56%
ao u w u n a za s 1 N/A 12.009 to 17.90061 026 11.800 77 5.500 et 46.55%
40 m u m a o : 11 WA 12.76577 1870623 o zs 18.7M,49 5 9 2 .7 3 46.55%
41 MJU M 3 2 6 NIA 13.58961 20,062.12 026 20,062 38 6.37277 46 55*
42 M\l\Ulll 352 o NIA 14,781 42 21 ,662 17 026 21.66243 o.aa1 .01 46.55%
43 SLIIOW 183
44
45 Snucnnunmuu 102 N/A s 76 50 s 112.11 s 0 .2 6 s 1 1 2 3 7 s 3587 4sus1s
48 Meisuud Sauce.
47 Rnq-nummc 144,535 s 582 $1 s us e 75 s 026 s n o m s 307 20 5211ss
48 nnguuuonunc run zoos s.s9a.u 1 29,899.84 45.78879 0.26 45.78905 w a a o zo 53.14%
49 Resiaunnl, Math. Gvueafy. DryCIa.mq 100 83.359 44258 67499 0.26 67525 232.87 52.57%
50
51 Wigw.m Rucv\pofRoom NIA s 1a.aw.57 s 21203.79 s 0.26 s 2120495 s 7,304.48 62.55%
11
52 VihgwnmRsaal1Main N/A 1,ea297 zs aeae 026 2,637.12 874 15 52.57%
53
54 Eb qSd\ooh s NIA s 1.13011 s \.725g5 s 0.26 s 1,725.31 s 1.0988 591 50 52 57%
i s Mdalo Ind vw- Sdlnoh s NIA 1.330 2.029 026 2.oao 800.37 9 5 7 %
56 CGm1-\lyCohge 1 WA 2,oa2 3,146 026 3,146 52.50%
57
so
59
w
81 Tom 24.201
B2
83
82134
DECISION no.

Docusign Envelope ID: D41250706995496BMOD33009702AD1 B
DOCKET NO. W-0I427A-25-0126, ET AL.
Liberty Llilities (Litchfield Park Water & Sewer) Corp. Sewer Division Exhibit
Present and Proposed Rates Settlerrent Schedu
Test Year Ended December 31, 2024 Page 1
Witness: Bouressa
Line
NQ.
1 Present Proposed
2 Qmmmmimn~mmmm Bains Barns Mann
3
4 Monthly Charge for:
5 Monthly Residential Service s 45.23 s 66.29 s 21.06
6
7 MultiUnit Housing Monthly per Unit s 41 99 s 61 54 s 19.55
8
9 Commercial:
10 Small Commercial Monthly Service s 76.50 s 112.11 s 35.61
11 Measured Service:
12 Regular Domestic:
13 Monthly Service Charge s 4282 s 62.76 s 19.93
14 Regular Domestic per 1,000 gallons water usage s 374 s 5.72 s 1.99
15 Commodity Charge per 1.000 gallons measured influent' s 467 s 7.15 s 2 48
16
17 Restaurant, Motels. Grocery Stores 8 Dry Cleaning Estab.
18 Monthly Sewioe Charge s 4282 ' s 62.76 ' s 19.93
19 Commodity Chargeper 1,000 gallons water usage' s 480 s 7.34 s 2.55
20 Commodity Charge per 1,000 gallons measured influent` s 662 s 10.14 s 3.52
21
22 Wigwam Resort:
23 Monthly Rate Per Room s 41 99 s 64.06 s 22 07
24 Main Hotel Facilities Per Month s 1,662.97 s 2,536.86 s 873.89
25
26 Schools Monthly Service Rates
27 Elementary Sdmools s 1 ,130.81 s 1,725.05 s 594.24
28 Middile Schools s 1 .330.37 s 2,029.48 s 699.11
29 High Schools s 1,330.37 s 2,029.48 s 699.11
30 Community College s 2,062.08 s 3,145.70 s 1,083.62
31
32 Effluent' Marke! Market
33
34
35 ' Motels without restuarants included (ellntmate multiunlt monthly rate provision)
36 2 For CommerdaVNonResidential Customers that are provided with water service from the Company or whose water usage is available l
37 the Company from another water utility, Company shall bill nonresidential customers based on water usage data provided by Liberty Utlli
38 or water usage data provided by another local water provider. II, at any point. Company is unable to obtain actual water usage data for so
39 commerciallnon-residential customers. Company shall bill nonresidential customers based on the last known. most recent usage data as
40 e proxy. Billing shall be trued up when actual data is obtained. If no water data can be obtained, a nonresidential customer may be regt
41 to install an influent meter at cost and such customers shall be billed in accordance with the influent data rates set forth above.
42 3 For customers that are not receiving water service from the Company. and/or the Company is not receiving water usage data informatio
43 from another water provider, a meter to measure influent will be installed at cost and paid by customer and such wstomers shall be billed
44 in accordance with the influent data rates set forth above.
45 ' Market Rate Maximum effluent rate shall not exceed $430 per acre foot based on a potable water rate of $1 .32 per thousand
46 gallons.
47 NT = No Tarlfl
DECISION no. 82134

Docusign Envelope ID: D41250706995496BMOD33009702AD1B
DOCKET NO. W-01427A-25-0126. ETAL.
lleH3
I
Percent
cnnnan
46.55%
46.55%
46.55%
46.55%
53.15%
53,1596
46.55%
53.15%
53.15%
52.55%
52.55%
52.55%
52.55%
52.55%
52 55%
lo the
ties
sch
aired
n
82134
DECISION NO.

Docusign Envelope ID: D4125070-e99s-496Bm0033009702AD1 B
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Lltchfseld Park Water a Sewer) Corp. Sewer Dlvislon Exhibit
Changes in Representative Rate Schedules Settlement Schedule H3
Test Year Ended December 31, 2024 Page 2
Witness: Bourassa
Line
up. §!.'ll§9..9h££9!§ Ernsznt :mains
1 Establishment per AAC. R 142603(0)(1 ) $20 00 $30.00
2 Establishment (Afer Hours) NT NT
3 ReEstablishmentof Service per AAC.R 142-603(0)(1) to) (8)
4 Disconnection (U) At Cost (b)
5 Reconnection per AAC. R 142603(0)(1 ) co) co)
6 NSF Check per AAC. R 14260B(E)(1 ) s2s.oo (C) $25.00 (c)
7 Deferred Payment (per month) 1.5% 1.5% per month
8 Late Charge (d) (d)
9 Service Calls Per Hour/After Hours $40 00 (e) $125 (e)
10 Alter Hours Service Charge NT NT
11 Deposit Requirements (f) (f)
12 Deposit Interest per AAC.R 142-603(8) 6.00% 6.00%
13 Service Lateral Connection Charge NI sizes (9) (9)
14 Main Extension, Tariff, per Rule R142606B. (h) (h)
15 Influent Meter lnstalation Charge (I) Al Cos! (6) Al Cost (i)
16 Wastewater HookUp Fee Al Cost (j) N Cos! (D
17 Failed Final Inspection Fee NT $75.00
18 1 Companys Proposed Rates were amended by the Corrpany on November 17. 2017. The modifications to the Corrpanys proposed tariff of rates and
19
20 (a) Minirmm charge times nurrber of ful months off the system per Rule R 142603(0).
21 (b) Customer shal pay the actual cost including costs for excavation and trenching, pipeline modification. sewer block. backfill and grading, mad repairs
22 and perrritting. Custorrer will be provided copies of invoices for actual costs incurred. There shall be no charge if no work is perlorrnad.
23 (c) Liberty Litchfield Park may charge only one NSF lee when customers are billed for water and sewer services on one bill.
24 (d) Greater of $5.00 or 1.50% of unpaid balance.
25 (e) Customer shall be charged for afterhours service calls outside of nonral working hours for work performed at customer's request or convenience.
26 (f) Per ACC Rules R142603(B) Residential two time the average bill by class. Nonresidential two and onehalf times the customers estimated
rruaximxn monthly bill,
27 (g) At Cost. Cuslorrer/Developer shall lnstal or cause to be installed all Service Leterals as refundable advances~lnaid of construction.
28 (h) All Main Extensions shall be completed at cost and shall be treated as refundable advancesinald of construction.
29 (i) The cost of the influent meter and metering system installation shall be at the sole expense of the commercial and Industrial user and not subject to
refund,
30 (j) Residential and Nonresidential Customer/Developers stall pay the applcable Wastewater Hook-lJp Fees per tariff,
31
32
33 in addition to the collection of regular rates, the utility will collect from its customers a proportionate share of any privilege, sales, use. and franchise tax,
l
l
l
DECISION no. 82134

Exhibit B
DOCKET NO. W-01427A-25-0126. ET AL.
LIBERTY UTILITIES(I.lT(HFIELl) PARK WATER & sitwrzki C`()RP.
Plan of Administration
Annual Rate Adjustment Mechanism
Libcny Utilities (Litchlicld Park Watcr and Scwcr) Corp.
"Liberty Litchfield Park" or "Company"
Annual Rate Adjustment Mechanism ('ARAM")
Plan of Administration
I. Applicability
Thc following procedures (the "Plan of Administration") shall apply to the Liberty Utilitics
(Litchlicld Park Watcr and Sewer) Corp.' s ("Libcrly Litchlicld Park" or "(.ompany") calculations
set forth in the Company's Annual Rate Adjustment Mcchanism ("ARAM") Tariff. Appendix
A ARAM SurchargelSur-crcdit Calculation 7cmplatc ("ARAM Rate lcmplatc"). lhc
Company shall follow the methodology specified in the ARAM Ratc lcmplatc to calculate
annually its revenue requirement. revenue dclicicncy or excess, rate base, and rates.
II. Annual Filing Requirements
a. By May 1st each year, Liberty Litchfield Park shall calculate and file its ARAM
Surcharge! lfMay 1st falls ona weekend or holiday, Liberty Litchfield Park shall tile
on the next business day. Within one business day of the tiling, Liberty Litchfield
Fork shall provide all models and work papers electronically in native format with all
formulas and links intact to the parties in the docket. including Arizona Corporation
Commission ("Commission") Utilities Division Staflf ("Sta ft") and t ustomers per
r election to be an imcicslcdparty pct bccUun \ l (collectively, "Interested Parties").
b. The ARAM filings shall be made in Docket Nos. W01427A-25-0126 and SW0 l428A-
25()I27.
c. The first Annual Update shall be filed by May I. 2028. utili7ing a twelve-month test
year ending December 31, 2027. Future filings shall also utili7e a twelve-month test
year ending Decembcr 3 l .
d. The tiling shall:
i. lose a historical test year as required under A.A.(". RI4-2-IO3(A)(3)(p)
("ARAM lcst Ycar").
ii. Include an AnnualUpdate reflecting changes in the revenue requirement based
on the ARAM Test Year with adjustments as spccilied in this Plan of
Administration.
iii. If applicable, the second ARAM Annual Update filing will include
annuali7ation ofARAM Surcharge or Sur-credit revenues from the first filing.
i While referenced as Surcharge here,this encompasses Surcharge or Surcredit throughout the document.
De¢i5ion No. AZYXXX(Mo/uh. Day. Year) Pagel I l
DECISION NO. 82134

DOCKET NO. W-()l427A-25-0126. ET Al..
LIBERTY UTILITIES (LlT(HFlF:Ll) PARK WATER & SEWER) C`()RP.
Plan of Administration
Annual Rule Adjustment Mechanism
I
iv. Include an earnings tcsl. preventing Liberty Litchfield Park from exceeding its
authorized return outside of the 'dead band'. The dead band shall be +/- 50 basis
points of the authorized Rctum on Equity. For example. if the autl1ori7ed
Rctum on Equity is 9.80o/0, the dead band is 9.30% - l 0.30%. Thus, a Return
on Equity falling within 9.30% - l 0.30% shall result in no rate change, a Return
on Equity exceeding l0.30% shall result in a rate decrease and a Return on
Equity below 9.30% shall result in a rate increase.
l
e. Thc minimum schedules to be filed with the ARAM as defined in A.A.C. Rl4-2-
O3(B)( I) arc: A-I, BI. B-2, C I , C-2. C-3.and-D-l. l;-l. E-'. IlX (Computation ul
Surcharge or (rcdu 1 and additional schedules and workpapcrs to support the inputs
in the Annual Update filing.
f. To increase the transparency and ease stakeholder review, the ARAM Rate Template inputs
for the tbllouing ratemaking elements shall be a stated value to be used in the ARAM Rate
Template until changed pursuant to full general rate case approved by the Commission. The
stated values shall be those authorized by the (ommission in the underlying Decision
authori7ing the use of the ARAM.
i. Equity component of capital structure as typically found on the D-I schedule,
ii. Debt component of capital structure as typical found on the D-I schedule:
iii. Rctum on Equity as typically bund on the D-I schedule,
iv. Cost of Debt as typically found on the D-l schedule:
V. Depreciation and CIAC Amortization Rates as typically found on the C-2
adjustment schedule,
Gross Revenue Conversion Factor l(iR(F) as typically bund on the C-3
schedule unlcar, >tutulotil) cluuigutle884
\*l1\ll. Property Tax will nctlcct statutory rate> but will not exceed the assessment ratio
typically lound.on the C-' titliustmcnt achcdulc
vii.
viii. Federal and Statc Income Tax rates as rctlcctcd on the C-3 schedule.
unless statutorily changed:
ix. Corporate and regional shared services cost allocations as typically found on the Cl
schedule; and
x. Capitalizcd overhead included in plant additions. as typically found on the B-2
schedule, will not exceed the test year capitalized overhead related additions authorized
in the rate case.
l)ecisirm No. XXXXX (Month, Day, Year) Page I 2
D1cls1on NO. 82134

DOCKETNO. W-01427A-25-0126. ETAL.
LIBERTY UTILITIES (LITCHFIELD PARK \VATER & SEWER) C`()RP.
Plan of Administration
Annual Rate Adjustment Mechanism
g. Cost disallowances:
i. Voluntary rate base or expense adjustments made by the Company - If the
Company proposed any rate base or expense adjustments in its prior rate
case direct application that was accepted by the panics, that same
methodology shall be followed in Animal Updates. The final Plan of
Administration approved by the Commission shall include details of those
adjustments for greater transparency in the ARAM Rate Template, and
ii. Rate Base or Expense adiustmcnts authorized by the Commission - lethe Commission
orders any rate base ('B' schedules) or expense ('C' schedules) adjustments in its final
Decision, that same methodology shall he followed in Annual Updates. For example.
50/50 sharing of a specific expense. The final Plan of Administration approved by the
Commission shall include details of those adjustments for greater transparency in the
ARAM Rate Template.
h. The Annual Update for the ARAM Test Year shall:
i. to the extent specified in the ARAM Rate Template, be based upon data accurately
recorded in the Company's regulatory accounting records for the most recent calendar
year maintained consistent with the Unifomi System of Accounts ("USoA") and
Commission accounting policies,
ii. as and to the extent specified in the ARAM Rate Template or data requests, provide
supporting non-confidential or competitively sensitive documentation for data not
otherwise available in the regulatory accounting records that arc used in the ARAM
Rate Template,
iii. disclose any accounting changes or adjustments that affect inputs to the ARAM Rate
Template. including,
I theinitial implementation ofan accounting standard or policy.
2 the initial implementation of accounting practices for unusual or
unconventional items where the Commission has not provided
specific accounting direction,
3 the effect of any change to an accounting standard, policy or the
underlying USoA,
4 correction of errors and prior period adjustments that impact the
calculation,
5 the implementation of new estimation methods or policies that change
prior estimates,
6 changes to income tax elections. and
7 reclassifications. including mapping changes. among NARUC
accounts between calendar years.
iv. provide notice of changes in the Company's accounting policies and practices from
those in effect for the calendar year upon which the immediately preceding Annual
Update was based ("Accounting Changes").
Decision No. XXXXX(Monrh, Div, Year) Page I 3
DECISION NO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
LIBERTY UTILITIES (I,IT(HFIELI) PARK WATER & SEWER) C`()RP.
Plan of Administration
Annual Rate Adjustment Mechanism
V. identify items included in the ARAM Rate Template at an amount other than
on a historical cost basis (e.g., fair value adjustments):
vi. identify any reorganization or merger transaction and explain the effect of the
accounting for such transactions on inputs to the ARAM Rate Template:
vii. make note of any aspects of the ARAM Rate Template or its inputs that are the subject
fan ongoing legal dispute.
viii. to the extent accountingchanges and other matters aflCet the Company's inputs to its
ARAM Ratc Template. provide at narrative explanation of the individual impact of
those items on charges billed under the ARAM Rate template.
ix. be subject to review and challenge. in accordance with the procedures set forth in these
protocols. as to whether the input data arc accurately recorded. whether the costs and
expenditures included for recovery in the Annual Update are prudent. and as to the
accuracy of the data and the consistency with the ARAM Rate Template. including the
terns and procedures in this plan of administralion. of the charges shown in the Annual
Update: and
x. not seek to modify the ARAM Rate Template and shall not be subject to challenge by
seeking to modify the ARAM Rate Template (i.¢'.. all such modifications to theARAM
Rate Template. items specified in Section Il.c., will require. as applicable, a full rate
case).
Ill. (general Policies of the ARA\1
a. The actual date of the filing of the Annual update shall be that year's "Filing Date."
h. The ARAM Rate Template is premised upon the following predicates ("Fundamental
Predicatcs"):
i
i. The National Association of Regulatory Utility Commissioners' ("NARUC's") 1996 l
USoA for Class A Water Utilities. i
ii. The Commission's orders establishing general accounting directives and precedents:
iii. The Commission's requirement for water utilities to maintain regulatory accounting
records in accordance with the NARUC USoA: and
I iv. The C`ompany's accounting policies, pfaetieespractices, and procedures.
c. The first Annual Update shall use a test year with twelve months ending December 3 I ,
I 2027 with subsequent updates to use a test year ending December 31 ofcach following
year. i
l
l l
l
I)<'<ision No. A3YXX'X(MuI1111, Day. Year) Page | 4
l
l
DECISION NO. 82134 l l
l

DOCKET NO. W-01427A-25-0126. ET AL.
LIBERTY UTILITIES (I.IT(HFIF:LI) PARK WATER & sswsnl (*()Rp
Plan of Administration
Annual Rate Adjustment Mechanism
d. Adjustments lo recognize plant investments that arc determined to be used and useful
I up to three months from the end of the ARAM test year:-mayycar,may be includedin
rate base in the first ARAM tiling only. After the first ARAM filing, rate base will
not include any plant investments beyond the end of the applicable ARAM test year.
c. The ARAM Surcharge shall not become efTeclivc until approved by the Commission.
|\. Interim Documentation Provided
a. To increase transparency and case the administrative burden, Liberty Litchfield Park
shall:
i. ()n a quarterly basis. file in the underlying general rate case docket. the following
information related to capital expenditures placed in-service:
I. A list.description, location, in-service dale, NARUC account and total cost
of all capital projects greater than $20.000.
2. Staff and Interested Parties may request supporting documentation for the
data provided quarterly. The Company will respond to such requests within
10 days of receiving the request.
3. Details regarding whether the project was funded by look UpFees, Advances
in Aid al(onstructitm or Contributions in Aid of(onstruction.
ii. File the first interim documentation report no later than March l. 2923eontennmg"tl"7
l colittttltlng data for the-ealendaftlic cnlciidul year of2026 with subsequent filings to be
made quarterly thereafter. Each subsequent quarterly filing will be published no later
than 30 days after the close of the quarter-end (e.g., April 30, July 31. ()ctobcr 31.
January 3 l).
\ . ARA\1 Surcharge Rate Design
a. The ARAM Surcharge rate design will follow the cost of service revenue allocation
and rate design approved in the underlying rate case decision. Thus, the ARAM rate
design shall be as follows:
i. The ARAM Surcharge shall he detemiincd by allocating the requiredrevenueincrease
(decrease) between the fixed monthly charge and each of the commodity rates based
on the revenue allocation percentages detemiined in the underlying rate ease.
ii. Water Division: The ARAM Surcharge/Sur-credit to the monthly fixed charge for
water scwice shall be calculated by dividing the portion ofrevenue increase (decrease)
related to the monthly minimum as determined in Section V.a.i above by the number
of year-end active equivalents meters. by meter size. at the end of each ARAM test
year. The Surcharge shall increase with meter size based on the standard meter
AWWA flow factors.
iii. Wastewater Division: The ARAM Surcharge/Sur-credit to the monthly fixed charge
l)¢'<i.si0I1 No. XXXXX (Month. Day. Year) Page I 5
DECISION no. 82134

DOCKET NO. W-0 I427A-25-0126. ETAl,.
LIBERTY llTIl,ITlES (l.lT(IHFlELD PARK \VATER & sswsnl cony.
Plan of Administration
Annual Rate Adjustment Mechanism
I fOr wastcwater scnice shall he calculated by dividing the portion of IC\Cl1llC increase
(decrease) related to the monthly minimum by customer class as determined in Section
V.a.i. above by the number of test-year billings (including annualized bills) at the end
of each CSRM test year.
iv. Thc ARAM Surcharge/Sur-credit for each commodity rate for both water and sewer
sen'ice shall be calculated hy dividing the portion of revenue increase or decrease
related to each commodity rate as dctemiincd in Section V.a.i above by the gallons
sold/billed (in 1000' s) (including annualized gallons) for the respective commodity
rate.
V. The ARAM Surcharge/Sur-credit shall apply to all the Company's customers.
including private fire services and industrial fire services and excluding customers on
a market rate (i.e.. cflllluent water sales) or contractual rate.
vi. Liberty Litchfield Park is net required to pcrtbmt an updated Class Cost of Service
Study nor update allocation of the total revenue requirement between customer classes.
An example Surcharge calculation for the water division and the wastewater division
is included with this POA as Attachment A.
I
VI. ARA\1 Customer \otice Requirements
Annual Filing Notice: At least 5 days prior to the Company filings its ARAM Annual Update.
the Company shall provide notice to all customers. The notice shall include average customer
hill impact per the Company's Annual ARAM tiling and ARAM timeline and process
information. The notice shall be delivered using each customer' s elected communication method,
including paper mail or electronic delivery. Liberty Litchfield Park shall also post the notice on its
I website .nut make .oailuble .it option to elect beuig included lil further ttouiieauous 4: au iuLete>.tet.i putt; .
ARAM Surcharge Implementation Notice: Within 3() days after the Commission issues a
decisionin the ARAM tiling, the Company shall provide notice to all customers to implement the
Surcharge. The notice shall be delivered using each customer's elected communication method.
including paper mail or electronic delivery. Liberty Litchfield Park shall also post the notice on its
website.
I
VII. Annual Review Procedures and Timelines
The Table below is a summary table of the events within this section to demonstrate the proposed
procedures and timelines detailed in this section :
i
l
i
l)e¢ision No. A}YXXX(MoIUh. Dar. Year) Page I 6
DECISIONno. 82134

DOCKET N(). W-0 I427A-25-()l26. ET AL.
LIBERTY UTILITIES (I.IT(HFIELI) PARK VVATER & SEWER) C`()RP.
Plan of Adminislralion
Annual Rate Adjustment Mechanism
Process Ste Deadline S elle Date llmellm
Prefiling \olli 5 days print lo May I April 25
Annual llpdalc filing on \\l:bsile and Docket May I Filing Dale
Annual 'feeling between Company. Mall. lnle1vsled Parties Annually BL1w¢tn May 20 May :II Z() 30 days after Filing
Date
B) June 15 (if Filing
lnformalinn Exchange Period Informal challenge process Up In 45 days uRa:r Annual llpdatc Filing Dal:
lhntc is May I)
Company mponse lo Information Requests Within 10 days of each rcqucsl Rolllltg
Com pun) notke of opposition lo Ill lnlonnatlon Requctt Within 5 bushcxs days Rolling
Iinal l pdau Hling 00 days from Annual Update Idling By June 30
Formal Challenge filing dudlinr No he: than 90 days allcf Fllmg Dale 8> July 31
Co11\pan) rvrsponw to Formal Challenge Within 10 days of Formal CMlkn9 Iilhg Rolling
If no Formal Challenge (or all dlsmlsscdl staff Proposed Unler Wiihm P0 days aflcr annual Update Films l).nc By August 31
( ommission final 0rdcr (nn Formal ( hallengc) \\llhln 150 days after Annual Llpdmc Fung Dale By September 30
Hearing man be compklcd within P0 day> of Annual
If Fo mal (hall¢ngr nquinrs hearing By September 30
lipdalc Filing Date
If Formal Challenge nquim hearing R00 Wlthm 150 days alla Annual Update Filing Dale B> September 30
Commission llnal ()rdcr(Formal Chalkn c scenario) Wilhm lo do s al\cr Annual II ac Film | Dale B October 3 I
I
Each Annual Update shall be subject to the following annual review procedures ("Annual
Review Procedures"):
a. Pre-Filing Notice: 5 days prior to May I, Libcny Litchfield Park shall post the proposed
ARAM request on its website and notify all interested parties to the docket of the request
being made available.
b. Annual Filing: By May I, Liberty Litchfield Park shall file its Annual Update in the
I underlying rate case ¢~loe~leet=+inei\1o<lct .light provide Commission Staff and Interested Parties
W ith all models and work papers electronically in native tiinnat with all lbmiulas and links
intact.
C. Annual Meeting: Between 20 and 30 days alter the Filing Date. the Company shall organ 7e
a meeting or conference call among Staff and Interested Parties ("Annual Meeting") during
which the Company shall present details about its Annual Update. The (ompany shall provide
remote access for participation in the Annual Meeting. The Annual Meeting shall also provide
Staff and Interested Parties the chance to seek information and clarifications from the
Company about the Annual Update.
d. Information Exchange Period: Interested Parties have 45 days from the Filing Dale to
review the Annual Update and submit any InfOrmation Requests (the "InfOrmation Exchange
Period"). Information Requests shall be limited to the following scope:
i. What is necessary to determine if the Company has properly applied the
ARAM Template and the procedures set forth within this POA;
ii. What is necessary to verily that the input data are properly recorded, to
determine the prudence of the cost and expenditure included for recovery in
the Annual Update. and as to the accuracy of the data and the consistency
l)ecisi0/1 No. AQYXXA (Month, Day. Year) Page | 7
DECISION no. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
LIBERTY UTILITIES (LIT(HFlELD PARK WATER & SEWER) CORP.
Plan of Administration
Annual Rate Adjustment Mechanism
with the ARAM Template of the charges shown in the Annual Update;
iii. Information Requests shall not solicit information concerning costs or
allocations where the cost or allocation method has been detemiincd by the
Commission. except that such infomiation requests shall be permitted if
they seek lo determine if there has been a material change in circumstances,
Accounting Change. or pursuant to discovery of a calculation error in
subsequent Annual Updates. and
iv. The Information Requests shall not be directed at determining whether the
Formula Rate Template is just and reasonable.
I
e. Information Request:The C`ompany shall make a good faith effort to respond to Information
Requests pertaining to the Annual Update within 10 days of receipt. If the Company opposes
an Information Request. it shall notify the requesting party within 5 business days. This
applies to the infbmial and ibrmal challenge process.
i. The Company may require that a protective agreement be signed before
providing any confidential or competitively sensitive information or elect to
decline to provide such confidential or competitively sensitive information
when deemed necessary and appropriate. or if the Information Request is
beyondthe scope or otherwise not justified by Section Vll.d of this POA.
ii. During the Information Exchange Period, lntcrested Parties must notify the
Company in writing of any specific substantive objections it has to the
ARAM Annual Update tiling, including challenges related to Accounting
Changes, to the application of the Formula Rate Template, or to the
prudence of plant investments or costs incurred. A party submitting such
objections must specify the inputs, supporting explanations, allocations,
calculations, or other information to which it objects, provide at appropriate
explanation and documents to support its objection, and give the Company
an opportunity to address the objection. When addressing an objection. the
Company shall make agoodfaith effort to respond to any objection within
seven business days. If the Company disagrees with the objection(s) it will
provide the objecting party a response to the objection, including any
information or explanation that supports the inputs, explanations,
allocations, and calculations that the Company has made.
iii. To the extent any Interested Paty is unable to resolve disputes related to
Information Rcqucsts submitted in accordance with this Section. the
Company or Interested Party may seek resolution from the Commission
Hearing Division.
I
f. Each Annual Update shall not be subject to further objections by Interested Partiesbeyond45
days ailtcr the Filing Date. To the extent an Interested Party believes the Company has not
addressed its objection to the party's satisfaction, that party may filea Formal Challenge.
g. Final Update Filing:No later than 60 days from the Filing Date. the Company shall provide
a final update filing in the underlying rate case docket, and provide Commission Staff and
Interested Parties with all models and workpapers electronically in native format with all
Decision No. XXXXX (Month, Day. Year) Page I 8
DECISION NO. 82134

DOCKET NO. W-0I427A-25-0126. ET AL.
I.IBERT\ I UTILITIES (LITCHFIELI) PARK \\'ATER 8: SEVVER) C`()RP.
Plan of Administration
Annual Rule Adjustment Mechanism
formulas and links intact. This update tiling will include revisions. if applicable. accepted by
the Company that result from the information exchange period.
h. Formal Challenge Process: An Interested Party who has issued an objection under Section
\/ll.e is entitled to challenge the Annual Update formally. clearly identifying the action or
inaction which is alleged to violate the filed Fomiula Rate Template or this POA and
explaining how such action or inaction violates the Formula Rate Template or this POA (a
"Formal Challengc"). A Fontal Challenge must be filed in the underlying rate case docket no
later than 90 days after the Filing Date and distributed to the Company and all Interested
Parties. Such Interested Party must have first provided the same objection(s) under Section
Vll.e. and address the following:
I
i. State the specific relief or remedy requested, and the basis for that relief,
ii. Include or make reference to all documents that support the facts in the
Formal Challenge in possession of, or otherwise attainable by, the filing
party, including, but not limited to. contracts and affidavits, and
iii. Stale when the Interested Party objected to the Annual Update tiling in
accordance with Section Vll.e in this POA to dispute the action or inaction
raised by the Fomial Challenge. If no objection was raised during the
Information Exchange Period. then the issue is not eligible for a Formal
Challenge.
i. Any party filing a Formal Challenge must serve a copy of the Fontal Challenge on the
Company. Service to the Company must be on the same day as the filing with the Commission.
Simultaneous service on the Company can be accomplished by electronic mail, express
delivery. or messenger. The party filing the Formal Challenge shall serve the individual(s)
listed as the contact on the Company' s Annual Update.
i Any response by the Company to a Formal Challenge must be filed within 10 days of the date
the Formal Challenge was filed and will be served on the party that filed the Formal Challenge.
k. Hearings: If the Hearing Division or assigned Administrative Law Judge determines that a
hearing is necessary to resolve a Fontal Challenge. a hearing shall be scheduled and the scope
shall be limited to only those unresolved items raised by Formal Challenge(s). Any hearing
must be completed within 120 days of the Filing Datc. In lieu of a hearing, the Company and
Interested Party(ies) with unresolved Formal Challcnge(s) may elect to submit written filings
with the consent of the Hearing Division or assigned Administrative Law Judge.
I. Staff Proposed Order / Commission l)ecision: If no Formal Challenge is filed, or if all
Formal Challenge(s) are administratively dismissed, Staff will draft and file a Proposed Order
within 120 days after the Filing Date. The Commission should then issue a final Order on the
Annual Update within 150 days of the Filing Date.
m. RO0 / Commission Decision: If a Formal Challenge is filed which requires an evidentiary
Decision No. XXXXX (Month, Day, Year) Page | 9
DECISION NO. 82134

DOCKET NO. W-0 1427A-25-0126. ET AL.
LIBERTY UTILITIES (LlT(IHFlELI) PARK \VATF:R & SEWER) CORP.
Plan of Administration
Annual Rate Adjustment Mechanism
hearing or submission of writtcn evidence, the Hearing Division or assigned Administrative
Law Judge shall issue a Recommended Opinion and Order no later than 150 days after the
Filing Date. The Commission should then issue a final ()rder on the Annual Update within
180 days of the Filing Date.
Decision No. XXYXX (Month, Day. Year) Pagel 10
DECISION NO. __82134___

DOCKET NO. W-0I 427A-25-0126. ET AL.
LIBERTY UTILITIES (LIT(IHFlELl) PARK WATER & SEWER) C`0RP.
Plan of Administration
Annual Rate Adjustment Mechanism
\ Ill. ARAM Administration Calendar
Base Rate Case ARAM Test Required New Rates
leet Ycar Year Filing Date Effective Date*
Initio! Bzwc Rate Deccmbcr 3 I , N/A -
CaseTest Ycar 2024
1st ARAM Annual December May I, 2028 November l,
Update 3 I , 2027 2028
2ld Annual December May 1. 2029 November I,
Update 3 I . 2028 2029
3" Annual Dccclnbcr May l, 2030 Novcmbcr l,
Update 3 I . 2029 2030
4wh Annual December May 1,2031 Novcmbcr I.
Update 3 l . 2030 203 l
5' Annual December May l, 2032 November l,
Update 3 l , 203 I 2032
Full Rate Case If a rate case is not filed within the first five years ofARAM Annual
Updates, a rate case must be filed with a test year ended December 3 I ,
2032 by June 30, 2033.
*Includes additional time for hearing and recommended order prior to final consideration
IX. ARA'\1 Filing Costs
Actual ARAM filing costs incurred by the Company will be recorded as part of its
annual operating expenses and included in the Annual Update filing and reflected in
ARAM template Schedule C-l.
x. Full Rate Case Requirements
The Company may voluntarily file a rate case at any time. If a rate case is not filed
within the first five years of ARAM adjustments, a rate case must be filed no later
than June 30, 2033 with a test year ended December 31, 2032. Thereafter, the
Company shall file a full rate case with no more than five years between test years,
unless the Commission determines an alternate schedule. Notwithstanding the
requirements herein, the Commission may order the Company to file a rate case at
any time.
Decision No. X)£¥XX (Month. Day, War) Pagel II
DECISION NO. 82134

DOCKET no. W-01427A-25-0126. ET AL.
LIBERTY UTILITIES (l.lT(HFIELD PARK VVATER & sizwizni CORP.
Plan ofAdininistration
Annual Rate Adjustment Mechanism
Attachment A Rutc Design- Example Surcharge Calculation Water Division
Example Couputatbu of Suvhalges \\atrr Dhisk.l
Assumed Rename lncfnse (Decrease)
s 2,000,000
Decision X\.*D{X
Approved Rt! % of Revere Gsllcm Sold Sudzage
cnegeuy Revere Rate Reveres Cmrmlative Allocated Rev rues (in l.000s) pa 1,000 gallons
Mon81l}/Fixed CO s 7,703,382 33.08% 33 08% S 661,600 SC: Slnvlnrge Coupuhion below
Commodih Rate 691 837 " 97% 3605% 59,400 813,638 7 s 007
Commodity Rate 3,486,206 14 97% 51 02% "99400 1 063 483 ' 0.28
Cornmodxtv Rltc 3,301,591 14 18% 65 "0% 283 600 890 263.8 0.32
Cclumodiw Rate 7,863,866 33.77% 98 97% 675400 1634 5"5.l 0.41
Hyxlma 122. l 52 0.52% m49% 10,400 10.444.0 ion
Bulk 1 17,611 0.51% 100.00% 10,200 68,858.6 0 15
s 23,286,645 1®.00% s 2,000000 4 481 "res
C9WUn~hu&£mMnmQkus
render of YE AwwA Equivalent 5 8
aa=1n§l= ctn mm u m lndl.M:\:§
s.sx34n»n 170 "15.00 l oo 170
34lxrh 14,027 I 50 : l o w s
lkrlx 7.028 2,50 17570
l 5lnd1 3"l 5.00 1605
Inch 751 s oo 6008
Blxuh 26 woo 416
4 Inch 21 25 00 525
6 Inch 7 5000 350
Slnch 1 $000 so
loach 2 I 15.00 230
xzurh o
47.995
Revenues to be Collected s 661,600
Eqm Alan 5 8 iirh may 47,995
Moulhlysurdaafgepaequivalent 5 / &LE 4 Ind: S 1.15
s / 8x34hd s I. 15
3 4 lmlJ 1.72
1 mh 287
l 5lnd 5.74
: u h 9. 19
s s h 18.38
4 Inch 28.72
6 Incb 57.44
emu 91.90
m ud 13211
mud 246.98
Decision No. XXXXX (Month, Day, Year) Pagel 12
DECISION no. 82134

DOCKET NO. W-01427A-25-0126, ET AL.
LIBERTY UTILITIES (LITCHFIELI) PARK WATER & SEWER) CORP.
Plan of Administration
Annual Rate Adjustment Mechanism
Rate Design - Example Surcharge Calculation - Wastewater Division
Enngtlf (fangnlalhl of Sewer Sulrharlel
Anuird Rn en: lncrnsc (Duncan)
s 2.000.000
Dccixuon XXAXA he Car;
Approval Rat: v. of Rrwllr (sallow Blllccllnlh Clslomcn Swcharpe bulvchargc
Canary Bu n n : Blllc.BumraCIllldllix:\llml1ndBn:lml:= Un.1.9.llU Iiilki' u l l a a n u x n n u w
Mnlillb£ll¢lLLl1lI8I=L
Resldevllel s I 8.7 I 5,49 I 60.64% u0f»4'.» s 1.212.868 282J36 s 4.30
Rosiderlnal roA g(\].07() 2.80 63,441 55.932 13.020 4.30
Mill-UI! Homing 3.524,533 l I .42' s 74.86% aww $7,172 3.99
Small Comnefwl 138.5M 0.45% 75.31'5 um 1.1M 7.27
RBQUHY Domestic M3.3'9 0.b6° 5 75.97% 13,177 3.240 4.07
Regular Domaaxic mriuan 4.5 I x 0.01°a 75.98% 203 72 4.07
Reslauarl. Motels. Grocery. Dry Cleermg 75.307 0.24% 76.23% use L200 4.07
Wigwam Round Paf Room 2m.un 0.82% 77.05% 1 c»,4x9 3,972 4. IN
Wigwam Resin . Main m a : 0. I0% 77. I 5% um 12 1 bl,42
Elamsdary Sdiools I"4.204 0.40% 77.55% 8.049 72 I I I .79
Midde and Hgh swans No, I 22 0.47% 78.03% 9,470 72 13 I .53
Conlnnly Galaga : L u x 0. I 1% n. I 5% 2.446 12 203.K3
C11l1II1=II2d1I:~Cl1i1l|=1
Ragnlar Domestic 2,678,566 awe. 1u6.13'» 173.slu» 468.148 s 0.37
Regdar Domesilc Iriluart 3430.¢»22 10.79% 97 .62% 2 I 5.84) 465.690 0.46
Reslaulanl, Motuis, Grocery. Dry aeanirq 734.593 2.38% IWW/ I 47.606 100.019 0.48
s 30,8b1,S$b 100.00% s 2.000,000 1.033.857
l~=uaun¢ulau~»a¢4mnuul».
Decision No. XXXXX (Month, Day, Year) Pagel 13
DFCISION no. 82134

EXHIBIT C
DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. Water Division ExhibitC - Water UPIS
Docket Nos. W01427A-25-0126
Test Year Ended December 31, 2024
PI n-in rvi
ROO
Adjusted
Acct. Original
ML Description
106 Construction Compl. - Not Classified s
301 Organization Cost 21 .090
302 Franchise Cost
303 Land and Land Rights 3,093,743
304 Structures and Improvements 31 ,873,891
305 Collecting and Impounding Res.
306 Lake River and Other Intakes
307 Wells and Springs 22,435,927
308 Infiltration Galleries and Tunnels
309 Supply Mains 4,233,597
310 Power Generation Equipment 532,017
310.1 Solar Generator 2,247,645
311 Electric Pumping Equipment 8,516,224
320 Water Treatment Equipment (0)
320.1 Water Treatment Plant 11 ,463,122
320.2 Chemical Solution Feeders 516,662
330 Dist. Reservoirs & Standpipe 0
330.1 Storage tanks 1,136,035
330.2 Pressure Tanks 490,054
331 Trans. and Dist.Mains 52,398,875
333 Services 7,745,812
334 Meters 11,266,658
335 Hydrants 3,949,529
336 Backflow Prevention Devices 101,427
339 Other Plant and Misc. Equip. 505,541
340 Office Furniture and Fixtures 768,575
340. 1 Computers and Software (12,137)
341 Transportation Equipment 1 ,035.040
341 .1 Transportation Equipment Golf Carts 52.207
342 StoresEquipment 37,143
343 Tools and Work Equipment 140,115
344 Laboratory Equipment 15,537
345 Power Operated Equipment 18,956
346 Communications Equipment 1 ,606934
347 Miscellaneous Equipment 5,061
347.1 Miscellaneous Equipment CNG 468,499
348 Other Tangible Plant 130,462
SUBTOTAL s 166,794,241
903 Land and Land Rights $ 26,060
904 Structuresand Improvements 940,326
940 Office Furniture and Fixtures 219,955
940.1 Computers and Software 1 ,505,319
940.2 Customer First 5,885,609
955 Power Generation 705
995 Power Operated Equipment 116,519
TOTALS s 175,488,734
DECISION NO. 82134

DOCKET NO. W-0I427A-25-0126, ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Col
Docket Nos. W01427A-25-0126 Exhibit c Water
Test Year Ended December 31, 2024 Acc. Dep.
Accumulated Depreciation
DECISION
Adjusted
Acct. Acc um.
M Description Depr.
108 A/D Unclassified s
301 Organization Cost
302 Franchise Cost
303 Land and Land Rights
304 Structures and Improvements 14,102,957
305 Collecting and Impounding Res.
306 Lake River and Other Intakes
307 Wells and Springs 2,980,276
308 Infiltration Galleries and Tunnels
309 Supply Mains 321,685
310 Power Generation Equipment 333,557
310. 1 Solar Generator 1,574,138
311 Electric Pumping Equipment 2,914,420
320 Water Treatment Equipment (1)
320.1 Water Treatment Plant 2,267,530
320.2 Chemical Solution Feeders 414,724
330 Dist. Reservoirs & Standpipe 0
330.1 Storage tanks 296,346
330.2 Pressure Tanks 487,805
331 Trans. and Dist. Mains 16,341,238
333 Services 3,364,082
334 Meters 6,171,832
335 Hydrants 1,133,476
336 Backflow Prevention Devices 69,798
339 Other Plant and Misc. Equip. 346,482
340 Office Furniture and Fixtures 693,548
340.1 Computers and Software (36,799)
341 Transportation Equipment 814,537
341 .1 Transportation Equipment - Golf C: 26,293
342 Stores Equipment 25,253
343 Tools and Work Equipment 46,128
344 Laboratory Equipment 13,568
345 Power Operated Equipment 15,063
346 Communications Equipment 772,351
347 Miscellaneous Equipment (1,022)
347.1 Miscellaneous Equipment CNG 131,557
348 Other Tangible Plant 130,462
s 55,751,285
903 Land and Land Rights $
904 Structures andImprovements 146,405
940 Office Furniture and Fixtures 173,944
940.1 Computers and Software 240,859
940.2 Customer First 441,083
955 Power Generation 123
995 Power Operated Equipment 20,391
TOTALS $ 56,774,090
DECISIONn082134

DOCKET NO. W-()l427A-25-0126. ET AL.
Liberty Ullkln (Lllchfkld Park Wat.r a. Sown) Corp. Wllll Dlvlslon Exhlbll C Was.:
Docket non. wo14z1A2so1zs II II.
Tut Yur EMC December 11. 2024
Dsnzssrnilsniznmu
Ad}ullul NonOnpr. Fully DIPY. Dnpnclabk DEC
Acct. Orlglnnl and Fuly Plant original creams Dsusskslszn
fig. MMUBIM 929.1 n n n r u m B!! Cos! lu 8 ! ! 8 8
101 PlantlnServtce s s s s
301 Organizalton CO" 21,090 (21 .090) 0.00%
302 Frmchixl Coat 0.00%
303 Land and Lane Rights 3.093.743 (3.093.743) 0.00%
304 Structures Ind Improvements 31.871891 31 ,873.891 3.33% 1,061,401
305 Colectim and ImpoundIng Rn. 2.50%
306 Luke River and other lmakn 2.50%
gov Well .no Springs n.4a5.921 22.435.927 3.33% 747,116
ace lnMm»n Gakrhs and Tunnels 6.67*
309 Suwiy Maine 4.233.597 4.233.597 2.00% 84.672
310 Power Generation Equipment 532,017 (224,815) 307.202 5.00% 15.360
310.1 S$r GemMa 2,247,645 2,247,545 8.67% 149.918
a n Electric Pumping Equipment 8,515,224 (229, 120) 8287. 104 12.50% 1.035.888
320 Weer Treatmsm EquimM (0) ' (0) 3.33% (0)
32o,1 Winer Treumem Plant 11,463,122 11 ,461122 3.8% 381.722
320.2 CMmlcN SoMion Feeders 516,662 (307.075) 2o9.5 07 N.00% 41 ,917
330 Drat. Reservoirs a Standpupe 0 <0) o 2 M 0
330.1 Storage tanks 1,136,035 1,136.035 Z 25,220
330.2 Pressure Tanks 490,054 (4M,143) 3,911 5.00% 196
331 Trans. nr\dDIll. Mams 52,398,875 52.390.875 2.00% 1,047,978
333 S andi 7,745,812 7,745,812 3.33% 257.936
334 Motors 1 1,265,658 (1,739,568) 9.527.090 8.33% 793.607
335 Hyde rank 3.949.529 3,949,529 2.00% 78,991
she Back row Pwventvon Dewcu 101 ,427 (38,387) ss.o4o 5.67% 4.205
339 Oahu pum und Mme. Equip. 505,541 (259,531) 246,010 6.67% 16,409
340 Omen Fumnure md Fuxturu 768.575 (650,749) 117.826 6.67% 7,859
340,1 Compunu and Software (12,137) o (12,137) 20.00% (2.427)
341 Tnnapommon Equipment 1,035,040 (796,1s2) 238.259 2o.ooss 47.652
341.1 TranspoMMon EquipmaM Golf Cans 52,207 52.207 7.53% 4,088
342 Stores Equipment 37, 143 37. 143 4.00% u e s
343 Tools and Work Equspmem 140.11 s 140. 115 5.00% 7.oos
344 Laboratory Equspmom 15,537 (5 aoa) 9.734 10.00% 973
345 Paws: Operated Equipmam 18,956 18.958 5.00% 948
346 Communncauom Equlpmom 1,606,934 (102,504) 1.504.430 10.00% 150,443
347 Mnacelaneoua Equipmanl 5.061 5.061 10.00% 508
3471 Miscellaneous Equiprnam CNG 458,499 468.499 3.33% 15.601
341 Omar Tangible Plant 130,482 (130.462) 10.00%
SUBTOTAL s 166,794,241 s (6,085.772) s s 151,708,469 s 5.976.667
903 Land and Land Rights s 26.060 s (28.060) s 0.00% s
904 Slruciurn md Imploveminls 940,326 940.326 2.56% 24,072
940 Ounce Fumnure and Fixlurn 219.955 219.955 6.6798 u.s7\
94 o,1 Compmarx .no Sokwafe 1 ,505,319 1.505.319 20.00% 301,064
9402 Customer F.sl 5,885,6W 5,885,609 5 no% 294,210
955 Power Genanluon 705 705 5.00% 35
995 Power opsrucd Equlpmml I 16,519 I 16,519 5.00% 5,826
TOTALS s 175,488,734 s (8.111.832) s 167.376.902 s 6.616.616
nonAmorl. Or
Gross CIAC Full Amoniua Nil CIA C A mon. R.l
Lass Nnonnniion of Comnblmons
303 Land and Lam! Rsgms s 229.065 (229.065) 0.00% s
304 Structures and lmprovemnms 609.937 609.937 3.33% (20.311)
307 Wal: and Spnngl 8.975.724 8.975124 3.33% (298.892)
309 Rlw Wear Supply Mnlns 1 ,467.08:s 1,467,063 2.00% (29,341)
311 Electric Pumping Equipmml 895.090 s (40.572) 854.518 12.50% u 06,515)
320 Wan Tualmlnl Equipment 1 ,528.791 1526.791 3.33% (50,842)
330 Dsslrlbunon Reservolv and Slnndpipes so ,175 581,175 2.22% (12,902)
331 Trans. and DaU, Mom: 32.470.687 32,470,687 2,009s (649,414)
333 Sorvlcn 1 .553.447 1,853,447 3.33% (61 .720)
334 Meters 43. 196 s (41 ,899) 1,297 8.33% (105)
335 Hydfimt 1 .297,193 1,297,193 2.00% (25.944)
346 Communucuham Eqwpmom 133,687 133.687 10,0098 (13,369)
she Other Plarvl Ind Make. Equip. 13.750 13,750 8.67* (917)
s 50,088,904 s (311,535) s 49.1as.2sa s (1.270.574)
Amorhzlion of Excess DM. Income Taxi and ITC
x
Amomzllon of EADIT 1.505147 3.699698 (75,145)
s (75,145)
Tol.l Daprecmian Expense s 5 270 asa
DECISION NO. 82134

DOCKETno. W-0I427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Sewer Division Exhibit C -
Docket Nos. W01427A-25-0126 et al Wastewater UPIS
Test Year Ended December 31, 2024
Plant-in-Sewice
ROO
Adjusted
Acct. Original
N9 Description M
106 Construction Compl. Not Class. $
351 Organization
352 Franchise 26,385
353 Land 4,185,292
354 Structures 8t Improvements 84,743,558
355 Power Generation 5,291,325
355. 1 Solar Generation
360 Collection Sewer Forced 13,028,836
361 Collection Sewers Gravity 52,837,734
362 Special Collecting Structures
363 Customer Services 1,311,379
364 Flow Measuring Devices 172,125
365 Flow Measuring Installations
366 Reuse Services 4,153,479
367 Reuse Meters And Installation 219,463
370 Receiving Wells 1,072,640
371 Pumping Equipment 7,830,186
374 Reuse Distribution Reservoirs 1,697,915
375 Reuse Trans. and Dist. System 1,412,510
380 Treatment & Disposal Equipment 46,090,639
380. 1 Odor Control GAC
381 Plant Sewers 22,755,838
382 Outfall Sewer Lines 343,681
389 Other Sewer Plant & Equipment 839,750
390 Office Furniture & Equipment 425,606
390.1 Computers and Software 389,012
391 Transportation Equipment 403,454
392 Stores Equipment 8,968
393 Tools, Shop And Garage Equip 593,726
394 Laboratory Equip 209,361
395 Power Operated Equipment 500,203
396 Communication Equip 6,078,886
397 Miscellaenous Equip. 339,168
397.1 Misc Equipment CNG 318,526
398 Other Tangible Plant 79,028
SUBTOTAL s 257,358,673
903 Land and Land Rights s 37,777
904 Structures and Improvments 1,355,038
940 Office Furniture and Fixtures 316,384
940.1 Computers and Software 2,165,260
940.2 Customer First 8,465,895
955 Power Generation 1,014
995 Power Operated Equipment 167,601
TOTALS S 269,867,641
=============== ISION NO. 82134

DOCKET NO. W-01427A-25-0l26. ET AL.
Liberty Utilities (Litch6eld Park Water & Sewer) Corp. - Sewer Division Exhibit c -
Docket Nos. W-01427A-25-0126 et al Wastewater Acc. Dep.
Test Year Ended December 31, 2024
Accumulated Depreciation
DECISION
Adjusted
Acct. Acc um.
M Description Depr.
108 A/D Not Classified $
351 Organization (0)
352 Franchise
353 Land
354 Structures & Improvements 15,929,239
355 Power Generation 1,353,852
355.1 Solar Generation
360 Collection Sewer Forced (124,644)
361 Collection Sewers Gravity 14,489,568
362 Special CollectingStructures
363 Customer Services 140,426
364 Flow Measuring Devices (72,654)
365 Flow Measuring Installations
366 Reuse Services 1,802,683
367 Reuse Meters And Installation 82,998
370 Receiving Wels 660,438
371 Pumping Equipment 4,443,705
374 Reuse Distribution Reservoirs 124,007
375 Reuse Trans. and Dist. System 293,392
380 Treatment & Disposal Equipment 12,005,990
380.1 Odor Control GAC
381 Plant Sewers 3,435,840
382 Outfall Sewer Lines 256,229
389 Other Sewer Plant & Equipment 823,834
390 Office Furniture & Equipment 219,846
390.1 Computers and Software 366,742
391 Transportation Equipment 351,871
392 Stores Equipment 7,987
393 Tools, Shop And Garage Equip 151,630
394 Laboratory Equip 177,553
395 Power Operated Equipment 105,746
396 Communication Equip 1,417,200
397 Miscellaenous Equip. 284,204
397.1 Misc Equipment CNG 88,356
398 Other Tangible Plant 50,990
SUBTOTAL 58,867,026
903 Land and Land Rights s
904 Structures and Improvments 211 ,452
940 Office Furniture and Fixtures (177,887)
940.1 Computers and Software 278,540
940.2 Customer First 637,918
955 Power Generation 177
995 Power Operated Equipment 29,330
TOTALS s 59,846,557
DECISION NO. 82134

DOCKET NO. W-0I 427A-25-0126, ET AL.
Liberty Utilltln (Litchfield Park Water 5 Sewer) Corp.. Sewer Division Exhibit c .
Docket Nos. W01427A250126, at al Wastewater Dep Exp
Tut Year Ended December 31, 2024
Depreciation Expense Exhibit c
Wastewater Dep Exp
Adjusted NonDepr. Settlement Depr
Acct. Orlglnal or Fully Fully Depr Original Proposed Qopnclltlon
NO. t on Cost • r la I EMMA!! Cost Rates x ns o
101 PlantinSelvice 0.00%
351 Organization (0) (0) o.ol%
352 Franchise 26.385 (26,385) 0.00%
353 Land 4.185.292 (4. 185,292) 0.00%
354 Structures B. Improvements a4.743.558 84,743,558 3.33% 2,821,960
355 Power Generation 5.291.325 5.291,325 5.00% 264.566
355.1 Solar Generation 6.67%
360 Collection Sewer Forced 13,028,836 13,028,836 2.00% 260,577
361 Collection Sewers Gravity 52,837,734 52,837,734 2.00% 1,056,755
362 Special Collecting Structures 2.00%
363 Customer Services 1,311,379 1.311,379 2.00% 26,228
364 Flow Measiring Devices 172.125 (143,304) 28,821 10.00% 2,882
365 Flow Measuring Installations 10.00%
366 Reuse Services 4,153,479 4,153,479 2.00% 83,070
367 Reuse Meters And Instalation 219,463 219,463 8.33% 18,281
370 Receiving Wells 1,072,640 1,072,640 3.33% 35,719
371 Pumping Equipment 7,830,186 (1,096,304) 6.733,882 12.50% 841,735
374 Reuse Distribution Reservoirs 1,697,915 1,697,915 2.50% 42,448
375 Reuse Trans. and Dist. System 1 ,412.510 1,412,510 2.50% 35,313
380 Treatment a Disposal Equipment 46,090,639 46,090,639 5.w% 2,304,532
380. 1 Odor Control GAC 0.00%
381 Plant Sewers 22,755,838 22,755,838 5.00% 1,137,792
382 Outfall Sewer Lines 343.681 343,681 3.33% 11,445
389 Other Sewer Plant a Equipment 839.750 (785,285) 54,464 6.67% 3,633
390 Office Furniture a Equipment 425.606 425.606 6.67% 28.388
390. I Computers and Software 389.012 (212,242) 176,770 20.00% 35,354
391 Transportation Equipment 403.454 (331,474) 71 ,979 20.00% 14,396
392 Stores Equipment 8.968 8,968 4.00% 359
393 Tools, Shop Ame Garage Equip 593,726 593,726 5.00% 29,686
394 Laboratory Equip 209,361 (159,959) 49.402 10.00% 4,940
395 Power Operated Equipment 500,203 500,203 5.00% 25,010
396 Communication Equip 6,078,886 (338,353) 5,740,533 10.00% 574,053
397 Miscellaneous Equip. 339, 168 339, 168 10.02% 33,917
397. 1 Misc. Equipment CNG 318,526 318,526 3.33% 10,607
398 Other Tangible Plant 79,028 79,028 10.00% 7,903
SUBTOTAL s 257,358.673 s (7,278,599) s s 250,080,074 s 9,711,548
903 Land and Land Rights s 37,777 s (37,777) s 0.00% s
904 Structures and Improvements 1.355.038 1,355,038 2.56% 34.689
940 Office Fumrture and Fixtures 316.384 316,384 4.00% 12.655
940. 1 Computers and Software 2,165,260 2,165,260 20.00% 433.052
940.2 Customer First 8,465,895 8,465,895 5.00% 423,295
955 Power Generation 1,014 1 .014 5.00% 51
995 Power Operated Equipment 167,601 167,601 5.00% 8,380
TOTALS s 269,867,641 s (7,316.376) s 262.551 ,265 s 10.623,670
NonAmorl. Or
Less:Amortization of Contributions Gross CIAC Folly Amortized Net CIAC Amen. Rate
353 Land 1 ,795.220 (1 ,795,220) 0.0000%
352 Franchise 12.7a2 (12,782) 0.0000%
354 Structure and Improvements 15.933.143 15.933.143 3.330036 (530,574)
360 Collection Sewers Force 8.422.569 8,422,569 2.0000% (168,451)
361 CollectionSewers Gravity 36,097.301 36.097,301 2.0000% (721,946)
364 Flow Measixing Devices 49.448 (49.448) 10.000098
363 Customer Services 3.014.026 3,014,026 2.0000% (60,281)
371 Pumping Equipment 287.461 (28/,461 ) 12.500096
380 Treatment and Disposal 17,638,844 t7,638.844 5.0000% (881.942)
381 Plant Sewers 3.006.339 3.006.339 5.0000% (150,317)
398 Other Tangible Plant 13.750 (13,750) 6.670096
s 86,270,883 s (2.158,6€2) s 84,112,222 s (2,513.511)
Amortization of Excess Deferred Depreciation
Less: Amortization of EADIT 2.236.878 2,236,878 3.9904% (89.261 )
Add: Sarival Depreciation Deferral Accounting Order 5,204,310 4.6818% 243.656
Total DepreciationExpense s 8,264,554
DECISION NO. _82134

EXHIBIT D DOCKET NO. W-0I427A-25-0l26. ET AL.
Llberty Urllltles (Lltchfleld Park Water & Sewer) Corp. Water Dlvlslon
Docket No. W01427A25-0126, at al Exhlblt D Water
Tas! Year Ended December 31, 2024 Resldentlal Rates
RESIDENTIAL RATES
ROO
Recommended Rates
i/eniaizuelmaswi;
5/8" x 3/4" Residential s 14.70
3/4 inch Residential s 14.70
1inch Residential s 33.08
1.5inch Residential s 73.50
2inch Residential s 117.60
3-inch Residential s 235.20
4inch Residential s 367.50
6inch Residential s 735.00
8inch Residential s 1,176.00
10inch Residential s 1,690.50
12inch Residential s 3,197.05
Fire S rinklers B Mater Size
/ /4 Re i i e In 4
First 3,000 gallons First 3,000 gallons s 0.7800
3,001 10,000 gallons 3,001 10,000 gallons s 2.8200
10,001 20,000 gallons 10,001 20,000 gallons s 3.9800
Over 20,000 gallons Over 20,000 gallons s 4.3900
3/4 inch Residential
First 3,000 gallons First 3,000 gallons s 0.7800
3,001 10,000 gallons 3.001 10,000 gallons s 2.8200
10,001 20.000 gallons 10,001 20,000 gallons s 3.9800
Over 20,000 gallons Over 20,000 gallons s 4.3900
1inch Residential
First 5,000 gallons First 5,000 gallons s 0.7800
s,oo1 19,000 gallons 5.001 19,000 gallons s 2.8200
19,001 30,000 gallons 19,001 30,000 gallons s 3.9800
Over 30,000 gallons Over 30,000 gallons s 4.3900
1.5inch Residential
First 40.000 gallons First 40,000 gallons s 2.8200
Over 40.000 galons Over 40,000 gallons s 4.3900
&m2u§amnmm
Far 60,000 gallons First 60,000 gallons s 2.8200
Over 60,000 gallons Over 60,000 gallons s 4.3900
3inch Residential
First 120,000 gallons First 120,000 gallons s 2.8200
Over 120,000 gallons Over 120,000 gallons s 4.3900
4inch Residential
First 1 80.000 gallons First 180,000 gallons s 2.8200
Over 180,000 gallons Over 180,000 gallons s 4.3900
6inch Residential
First 360,000 gallons First 360,000 gallons s 2.a200
Over 360,000 gallons Over 360.000 galons s 4.3900
8inch Residential
First 650,000 gallons First 650,000 galons s 2.8200
Over 650,000 gallons Over 650,000 gallons s 4.3900
10inch Residential
First 940,000 gales First 940,000 gallons s 2,8200
Over 940,000 galons Over 940.000 galons s 4.3900
12Inch Residential
First 1 ,248 ,000 galons First 1 ,248,000 gallons s 2.8200
Over 1 ,248.000 galons Over 1 ,248,000 allons s 4.3900
82134
DECISION no.

DOCKET no. W-0 I427A-25-0126. ET AL.
Liberty Utilitlos (Litchfield Park Water a. Sewer) Corp. Water Division
Docket No. W01427A250126, et al Exhibit D Water
Test Year Ended December 31, 2024 Commercial Rates
COMMERCIAL RATES
ROO
Recommended Rates
Meter Size (All Classesli
5/B x 3/4 Commercial s 14.70
3/4 inch Commercial s 14.70
1inch Commercial s 36.75
1.5inch Commercial s 73.50
2inch Commercial s 117.60
3inch Commercial s 235.20
4inch Commercial s 367.50
6inch Commercial s 735.00
Binch Commercial s 1,176.00
10inch Commercial s 1,690.50
12inch Commercial s 3,197.05
Fire Sprinklers By Meter Size
Industrial Fire Service Per Tariff
5/8x 3/4" m r i I Begin End
First 9,000 gallons First 9,000 gallons s 2.8200
Over 9.000 gallons Over 9,000 gallons s 4.3900
3/4 -in m r i
First 9,000 gallons First 9,000 gallons s 2.8200
Over 9,000 gallons Over 9,000 gallons s 4.3900
1inch Commercial
First 20,000 gallons First 20,000 gallons s 2.8200
Over 20,000 gallons Over 20.000 gallons s 4.3900
1.5inch Commercial
First 40,000 gallons First 40,000 gallons s 2.8200
Over 40,000 gallons Over 40,000 gallons s 4.3900
zlngnggmmgmlal
First 60,000 gallons First 60,000 gallons s 2.8200
Over 60,000 gallons Over 60,000 gallons s 4.3900
3inch Commercial
First 120,000 gallons First 120,000 gallons s 2.8200
Over 120,000 gallons Over 120.000 gallons s 4,3900
4inch Commercial
First 180,000 gallons First 180,000 gallons s 2.8200
Over 180,000 gallons Over 180,000 gallons s 4.3900
6inch Commercial
First 360,000 gallons First 360.000 gallons s 2.8200
Over 360,000 gallons Over 360,000 gallons s 4.3900
Binch Commercial
First 650,000 gallons First 650,000 gallons s 2.8200
Over 650,000 gallons Over 650,000 gallons s 4.3900
10inch Commercial
First 940,000 gallons First 940,000 gallons s 2.8200
Over 940.000 gallons Over 940,000 gallons s 4.3900
12inch Commercial
First 1,248,000 gallons First 1 ,248,000 gallons s 2.8200
Over 1,248,000 gallons Over 1228,000 . lions s 4.3900
82134_
DECISION NO.

DOCKET NO. W-01427A-25-0126, ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Water Division
Docket No. W-01427A-25-0126, et al Exhibit D - Water
Test Year Ended December 31, 2024 Multi Family Rates
MULTI FAMILY RATES
ROO
Recommended Rates
Meter Size (All Classes):
1-inch Multi-Family $ 33.08
1.5-inch Multi-Family $ 73.50
2-inch Multi-family $ 117.60
3-inch Multi-Family $ 235.20
4-inch Multi-Family $ 367.50
6-inch Multi-Family $ 735.00
Fire Sprinklers By Meter Size
Industrial Fire Service Per Tariff
1-inch Multi-Family Beqin
First 5,000 gallons First 5,000 gallons s 0.7800
5,001 19,000 gallons 5,001 19,000 gallons s 2.8200
19,001 30,000 gallons 19,001 30,000 gallons s 3.9800
Over 30,000 gallons Over 30,000 gallons $ 4.3900
1.5inch Multi-Family
First 40,000 gallons First 40,000 gallons $ 2.8200
Over 40,000 gallons Over 40,000 gallons s 4.3900
2-inch Multi-family
First 60,000 gallons First 60,000 gallons $ 2.8200
Over 60,000 gallons Over 60,000 gallons $ 4.3900
3-inch Multi-Family
First 120,000 gallons First 120,000 gallons $ 2.8200
Over 120,000 gallons Over 120,000 gallons s 4.3900
4-inch Multi-Family
First 180,000 gallons First 180,000 gallons $ 2.8200
Over 180,000 gallons Over 180,000 gallons s 4.3900
6-inch Multi-Family
First 360,000 gallons First 360,000 gallons S 2.8200
Over 360,000 gallons Over 360,000 gallons $ 4.3900
82134_
DECISION NO.

DOCKET no. W-0I427A-25-0126, ET AL.
Llberty Utilities (Lltchfleld Park Water a Sewer) Corp. Water Dlvlslon
Docket No. W01427A25012G, et al Exhlblt D Water
Test Year Ended December 31, 2024 Irrigation Rates
IRRIGATION RATES
ROO
Recommended Rates
Meter Size (All Classes):
5/8 x 3/4 Irrigation s 14.70
3/4 inch Irrigation s 14.70
1inch Irrigation s 36.75
1.5inch Irrigation s 73.50
2inch Irrigation s 117.60
3inch Irrigation s 235.20
4-inch Irrigation s 367.50
6inch Irrigation s 735.00
8inch Irrigation s 1,176.00
10inch Irrigation s 1.690.50
12inch Irrigation s 3,197,05
Fire Sprinklers By Meter Size
Industrial Fire Service Per Tariff
5/8" x 3/4 Irrigation Beam End
First 9,000 gallons First 9,000 gallons s 2.8200
Over 9,000 gallons Over 9,000 gallons s 4.3900
3/4 -inch Irrigation
First 9.000 gallons First 9,000 gallons s 2.8200
Over 9,000 gallons Over 9,000 gallons s 4.3900
1inch Irrigation
First 20,000 gallons First 20,000 gallons s 2.8200
Over 20,000 gallons Over 20,000 gallons s 4.3900
1.5-inch Irrigation
First 40,000 gallons First 40,000 gallons s 2.8200
Over 40,000 gallons Over 40,000 gallons s 4.3900
2inch Irrigation
First 60,000 gallons First 60,000 gallons s 2.8200
Over 60,000 gallons Over 60,000 gallons s 4.3900
3inch IrrigatIon
First 120,000 gallons First 120,000 gallons $ 2.8200
Over 120,000 gallons Over 120,000 gallons $ 4.3900
4-inch Irrigation
First 180,000 gallons First 180,000 gallons s 2.8200
Over 180.000 gallons Over 180.000 gallons s 4.3900
6-inch Irrigation
First 360,000 gallons First 360,000 gallons s 2.8200
Over 360,000 gallons Over 360,000 gallons s 4.3900
8inch Irrigation
First 650,000 gallons First 650,000 gallons s 2.8200
Over 650.000 gallons Over 650,000 gallons s 4.3900
10inch Irrigation
First 940,000 gallons First 940,000 gallons s 2.8200
Over 940,000 gallons Over 940,000 gallons s 4.3900
12inch Irrigation
First 1248,000 gallons First 1,248,000 gallons s 2.8200
Over 1 ,248.000 gallons Over 1,248,000 allons s 4.3900
DECISION NO. 82134

DOCKET NO. W-01427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. - Water Division Exhibit D - Water
Docket No. W-01427A-25-0126, et al Other Rates
Test Year Ended December 31, 2024
RATES - OTHER
ROO
Recommended Rates
Meter Size (All Classes):
Construction Hydrants $ 237.92
8-inch Luke AFB Bulk s 642.38
6-inch VUI Bulk $ 401.49
5/8 X 3/4-inch Fire $ 14.70
3/4-inch Fire $ 14.70
1-inch Fire $ 36.75
1 1/2-inch Fire $ 73.50
2-inch Fire $ 117.60
3-inch Fire s 235.20
4-inch Fire $ 367.50
6-inch Fire $ 735.00
8-inch Fire $ 1,176.00
10-inch Fire $ 1,690.50
12-inch Fire $ 3,197.05
Fire Sprinklers By Meter Size
Industrial Fire Service Per Tariff
Construction Hydrants Begin End
All gallons All gallons s 4.39
8-inch Luke AFB Bulk
All gallons All gallons $ 1.95
6-inch VUI Bulk
All gallons All gallons s 1.95
Fire - all All allons b res ective meter size
DECISION NO..82134

DOCKET NO. W-01427A-25-0126, ET AL.
Liberty Utilities (Litchfield Park Water 8- Sewer) Corp. Water Division
Docket No. W-01427A250126, et al
Test Year Ended December 31, 2024 Exhibit D
Wastewater Rates
DECISION
Customer Classification Rates
Monthly Charge for:
Monthly Residential Service s 65.91
MultiUnit Housing Monthly per Unit s 61,19
Commercial:
Small Commercial Monthly Service s 112.11
Measured Service:
Regular Domestic,
Monthly Service Charge s 62.78
Regular Domestic per 1,000 gallons water usage s 5.72
Commodity Charge per 1.000 gallonsmeasured influent s 7.15
Restaurant, Motels, Grocery Stores 8. Dry Cleaning Estab.
Monthly Service Charge s 62.76
Commodity Chargeper 1,000 gallonswater usage' s 7.34
Commodity Charge per 1,ooo gallons measuredinfluent° s 10.14
Wigwam Resort
Monthly Rate Per Room s 64.06
Main Hotel Facilities Per Month s 2,536.86
Schools Monthly Service Rates:
Elementary Schools s 1,725.05
Middile Schools s 2,029.48
High Schools s 2,029.48
Community College $ 3,145.70
Effluent Market
I Motels without restuarants included (elinimate multiunit monthly rate provision)
2 For Commercial/NonResidential Customers that are provided with water service from the Company or whose water usage is available to the
the Company from another water utility. Company shall bill nonresidential customers based on water usage data provided by Liberty Utilities
or water usage data provided by another local water provider, If, at any point, Company is unable to obtain actual water usage data for such
commerciallnon-residential customers, Company shall bill nonresidential customers based on the last known, most recent usage data as
a proxy. Billing shall be trued up when actual data is obtained. If no water data can be obtained. a non-residential customer may be required
to install an influent meter at cost and such customers shall be billed in accordance with the influent data rates set forth above.
3 For customers that are not receiving water service from the Company, and/or the Company is not receiving water usage data information
from another water provider, a meter to measure influent will be installed at cost and paid by customer and such customers shall be billed
in accordance with the influent data rates set forth above.
NT = No Tariff
DECISION no. 82134

EXHIBIT E
DOCKET NO. W-0427A-25-0l26, ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp. Water Division Exhibit E-Water
Docket No. W-01427A250126, et al
Test Year Ended December 31, 2024
RATE CASE EXPENSE SURCHARGE AS A MONTHLY CHARGE
Company Staff ROO
$ 350,450 $ 201,707 $ 172,000 Rate Case Expense to be Recovered
3 3 3 Years to Amortize Rate Case Expense
$ 116,817 $ 67,236 $ 57,333 Annual Rate Case Expense to be Recovered
s 116,817 $ 67,236 s 57,333 Annual Rate Case Expense to be Recovered
22,355 22,355 39,284 Annual Customer - All Meter Sizes
$ 5.23 $ 3.01 s 1.46 Annual Rate Case Expense Surcharge Per Customer
22,355 22,355 39,284 Annual Customer - All Meter Sizes Unweighted / Weighted
12 12 12 Months per Year
268,260 268,260 471 ,410 Annual Customer Bills All Meter Sizes Unweighted / Weighted
$ 116,817 $ 67,236 $ 57,333 Annual Rate Case Expense to be Recovered
268,260 268,260 471 ,410 Annual Customer Bills - All Meter Sizes
$ 0.44 $ 0.25 $ 0.12 Monthly Rate Case Expense Surcharge All Meter Sizes
DECISIONNO. 82134.

DOCKFT NO. W-0427A-25-0126. ET AL.
Liberty Utilities (Litchfield Park Water & Sewer) Corp.- Wastewater Division Exhibit EWW
Docket No. W-01427A250126, et al
Test Year Ended December 31. 2024
RATE CASE EXPENSE SURCHARGE - AS A MONTHLY CHARGE
Company Staff ROO
s 464,550 s 198,293 $ 228,000 Rate Case Expense to be Recovered
3 3 3 Years to Amortize Rate Case Expense
$ 154,850 $ 66,098 $ 76,000 Annual Rate Case Expense to be Recovered
s 154,850 $ 66,098 $ 76,000 Annual Rate Case Expense to be Recovered
24,205 24,205 30,318 Annual Customer All Meter Sizes
$ 6.40 $ 2.73 $ 2.51 Annual Rate Case Expense Surcharge Per Customer
24,205 24,205 30,318 Annual Customer - All Meter Sizes Unweighted / Weighted
12 12 12 Months per Year
290,460 290.460 363,818 Annual Customer Bills - All Meter Sizes Unweigted / Weighted
$ 154,850 $ 66.098 $ 76.000 Annual Rate Case Expense to be Recovered
290,460 290,460 363,818 Annual Customer Bills - All Meter Sizes
$ 0.53 $ 0.23 $ 0.21 Monthly Rate Case Expense Surcharge - All Meter Sizes
DECISION NO.82134