Code of Maine Rules › 65 - DEPARTMENT OF PUBLIC UTILITIES COMMISSION › 407 - PUBLIC UTILITIES COMMISSION › Chapter 615 - EXEMPTIONS FROM REGULATORY REQUIREMENTS FOR CONSUMER-OWNED WATER UTILITIES › Appendix 407-615-A - SUPPORTING DATA FOR PETITIONS FOR EXEMPTIONS FROM REGULATORY REQUIREMENTS FOR CONSUMER-OWNED WATER UTILITIES

Current through 2024-29, July 17, 2024
SUMMARY:
This Appendix describes ratios, data,
				  and documents that a consumer-owned water utility shall submit in conjunction
				  with a petition for an exemptions from regulatory oversight or statutory
				  requirements in accordance with Chapter 615, Section
				  3(B)(4).
I. INFORMATION TO BE FILED WITH PETITION
The petitioning utility shall provide each ratio, data, or
				  document described below. If the results deviate from the expected benchmark
				  measure indicated for a particular item, the utility may provide a written
				  statement describing the reason for any such deviation. The references
				  indicated in parenthesis are to the forms filed as part of a utility's annual
				  report to the Commission.
A. Financial Ratios and Data
1.
Current Ratio
The current ratio measures an entity's liquidity or ability
				  to pay its short-term obligations. A ratio of less than one indicates that the
				  entity cannot cover those obligations and maybe financially at risk. It is
				  calculated:
Current and Accrued Assets (
F-1, Ln. 42)
/
				  Current and Accrued Liabilities
(F-2, Ln. 29)
2.
Quick Ratio
The quick ratio measures an entity's ability to meets its
				  short-term obligations with its most liquid assets. The higher the quick ratio,
				  the better the entity's liquidity position. The quick ratio should be no less
				  than 1. It is calculated:
Current & Accrued Assets less M&S (
F-1, Ln.
				  42 - Ln 37)
/ Current and Accrued Liabilities
(F-2, Ln.
				  29)
3.
Operating Ratio
The operating ratio demonstrates the relationship between
				  operating revenues and operating expenses. A high ratio may indicate that the
				  organization has achieved operating efficiency by keeping expenses low relative
				  to revenues. It is calculated:
Operating Revenues
(F-4, Ln. 2)
/ Operating
				  Expenses
(F-4, Ln. 3)
4.
Unrestricted Days Cash
Unrestricted days cash measures liquidity relative to daily
				  operations and maintenance expense. It is calculated:
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5.
Cash Flow after Debt Payment or Debt Service
				  Coverage
Cash flow after debt payment reflects actual cash funds
				  available to fund operations such as repairs, capital replacements, and debt
				  service. This figure should be positive. It is calculated:
Net Income
(F4, Ln. 46 + Depreciation &
				  Amortization Expense (Lns. 4 - 7)
- Debt Principal Payments
(F5, Ln. 17) +
Required Sinking Fund Payments
(F5,
				  Ln.16)
6.
Total Debt/Net Plant
This measures outstanding debt to net plant and indicates how
				  the entity has financed its plant. It is calculated:
Long Term Debt
(F-2, Ln. 16)
/ Net Plant
(F-1, Ln. 6)
7.
Outstanding Debt to Maximum Debt
This measure identifies whether limitations exist that could
				  prevent an entity from borrowing to fund future infrastructure projects. As
				  some water utilities do not have borrowing limitations, this will not be
				  applicable to all consumer-owned water utilities.
Long Term Debt
(F-2, Ln. 16)
/ Charter
				  Borrowing Limitation
8.
Level of Undepreciated
				  Assets
This measure indicates the age of the assets and, in turn,
				  provides a measure of whether the utility has been replacing its infrastructure
				  on a regular basis. The depreciation base removes assets funded by
				  contributions in aid of construction and assets, such as land, that are not
				  depreciable. It is calculated:
Accumulated Depreciation
(W-5a, Ln. 33)
/
				  Depreciation Base
(W-5, Ln. 26, Col. d)
9.
Accounts Receivable
				  Turnover
This measure indicates whether the utility may be
				  experiencing cash flow problems due to slow payments or the failure to write
				  off accounts receivables that are unlikely to be paid due to age. It is
				  calculated:
Operating Revenues
(F-4, Ln. 2)
/ Accounts
				  Receivable
(F-1, Ln. 33)
10.
Average Customer Revenue
This measure shows the average revenue from each customer.
				  For an entity with customer classes that have varying usage levels, it is
				  appropriate to calculate this for each customer class. It is calculated:
Operating Revenues
(W-1, Lns. 10 - 13, col.
				  c)
/ Number of Customers
(W-7, Lns. 1 -6, col. d
				  )
11.
Percentage of Revenue from Each of the
				  Utility's 10 Largest Customers
This measure identifies the extent to which a utility's
				  revenues depend to a significant degree on one, or several, large customers,
				  and thus the risks to revenues that a utility faces should such customers cease
				  to take service. This measure is to be calculated from the utility's billing
				  records separately for each of its 10 largest customers. It is calculated
				  by:
Individual Revenue of Customer from Billing Records /
				  Operating Revenues
(W-1, Lns. 10 - 13, col. c)
12.
Average Customer
				  Consumption
This measure, when compared with previous years, reflects the
				  trend in customer consumption and is useful in predicting potential trends in
				  total revenues. For an entity with customer classes that have varying usage
				  levels, it is appropriate to calculate this ratio for each customer class. It
				  is calculated:
Operating Revenues
(W-1, Lns. 10 - 13, col.
				  e)
/ Number of Customers
(W-7, Lns. 1 -6, col.
				  d)
13.
Pension Plan Funding
				  Ratio
This measure reflects the percentage of unfunded pension
				  liability and may indicate the need for future rate increases to fund the
				  balance. Until GASB 68 is adopted, the utility may need to obtain this
				  information from its pension fund manager. If the water utility does not
				  provide pension benefits, this measure will not be applicable. It is
				  calculated:
Actuarial Fair Value of Pension Fund. / Actuarial Accrued
				  Liability for Pension Benefits
14.
OPEB Plan Funding Ratio
This measure reflects the percentage of unfunded OPEB
				  liability and may indicate the need for future rate increases to fund the
				  balance. The utility may have to gather this information from its fund manager.
				  To the extent that the water utility pays OPEB on a "pay-as-you-go basis." and
				  has therefore not accumulated any funds, it should indicate the procedures used
				  to budget for these costs. If the water utility does not provide OPEB benefits,
				  this measure will not be applicable. If the utility maintains a fund, it is
				  calculated:
Actuarial Fair Value of OPEB Fund. / Actuarial Accrued
				  Liability for OPEB Benefits
B. Operations and Maintenance Data
1.
Percentage of Mains Replaced per
				  Year
This is a measure of the existing distribution/transmission
				  infrastructure that has been replaced each year. The measure is calculated on a
				  per foot basis due to the difference between the cost of the replacement
				  infrastructure and the cost of the replaced infrastructure when it was first
				  put into place. This calculation will be need to be developed using the
				  utility's in house records for the number of feet replaced because the annual
				  PUC report does not include information regarding replacements. It is
				  calculated:
Number of Feet of Distribution/Transmission Main Replaced /
				  Total Feet of Distribution/Transmission Main
(W-9, Col.
				  c)
2.
Percentage of Non-revenue
				  Water
This measure reflects the percent of water either purchased
				  or produced that does not yield revenues to the utility. This measure is shown
				  on page W-12 of the PUC report on Line 19. It is calculated:
Total Production Water (W-12, Ln. 15) / Total Revenue Water
				  (W-3, Ln. 20, Col. e)
3.
Percentage of Unaccounted for
				  Water
This measure reflects the percent of water either purchased
				  or produced that does not result in revenues for the utility and has not
				  otherwise been accounted for by the utility. This percentage is lower than the
				  percentage of total non-revenue water because a utility is able to account for
				  certain usages that do not produce revenue, such as flushing and breaks. It is
				  calculated by:
Total Non-Revenue (NR) Water (W-12, Ln. 19) - Accounted for
				  NR Water
(W-12, Ln. 96)
/ Total Production Water
(W-12, Ln. 35)
4.
Percentage of Hydrants Flushed per
				  Year
This measure reflects how frequently the water utility
				  flushes its hydrants, based upon the number of hydrants flushed as reflected in
				  the utility's operating records. It is calculated by:
Number of Hydrants Flushed / Total No. of Hydrants
(W-10, totaled)
5.
Percentage of Hydrants Replaced per
				  Year
This measure reflects how frequently the water utility
				  replaces its hydrants. It is calculated by:
Number of Hydrants Replaced / Total No. of Hydrants
(W-10, totaled)
6.
Percentage of Hydrants Currently
				  Functional
This measurement reflects how many hydrants are functional in
				  the system. The number of working hydrants is from the utilities operating
				  records. It is calculated by:
Number of Working Hydrants / Total No. of Hydrants
(W-10, totaled)
7.
Hydrant Replacement
				  Percentage
This measurement reflects the rate at which the utility
				  replaces its hydrants, based upon the utility's operating records. It is
				  calculated by:
Number Hydrants Replaced per Year / Total Number of Hydrants
				  at Beginning of Year
8.
Meter Replacement
				  Percentage
This measurement reflects the rate at which the utility
				  replaces its meters, based upon the utility's operating records. It is
				  calculated:
Number of Meters Replaced per Year / Total Number of Meters
				  at Beginning of Year
9.
Percentage of Meters Tested per
				  Year
This measure reflects how frequently the utility tests its
				  meters. The number of meters tested comes from the utilities operating records.
				  It is calculated by:
Number of meters tested / Total Number of Meters at Beginning
				  of Year
(col. b)
10. Number of Water Main Breaks per Year
C. Personnel Information
1. Number of Employees
2. Average Years of Employment with Utility Among Current
				  Employees
3. Number of Employees holding Water Operator's License
4. Average Years of Water Utility Experience Among Current
				  Employees
D. Plans and Other Documentation
The petitioning water utility shall include a copy of the
				  most recent version of all models, policies, and reports listed below.
1. Hydraulic Model
2. Valve Exercise Program
3. Sanitary Surveys, most recent 3 years
4. Source Protection Plan
5. Leak Detection Program
6. Hydrant Flushing Program
7. Written Standard Operating Procedures
8. Emergency Response Plan
9. Customer Complaint Procedure
10. Description of each SDWA Violation during the prior 10
				  years
11. Consumer Confidence Reports, most recent 3 years
12. Comprehensive Facilities Plan / Master Plan
13. Safety Program (work safety)
14. Water System Maps