Hamilton Southeastern Utilities, Inc. 's 30-Day Filing ... - Hamilton SE.pdf · Applicability:Customers that qualify as a FOG Facility, as defined in Hamilton Southeastern Utilities’

March 26, 2018

Mary Becerra Secretary of the Commission Indiana Utility Regulatory Commission 101 W. Washington Street, Suite 1500 E. Indianapolis, Indiana 46204

Michael T. Griffiths Partner

Direct 317.968.55651 Fax 317.236.9907 [email protected]

Via Electronic Transmission

Re: Hamilton Southeastern Utilities, Inc. 's 30-Day Filing Pursuant to Cause No. 45032

Dear Ms. Becerra,

In accordance with the Commission's Order in Cause No. 45032 and 170 IAC 1-6 et seq., the Commission's 30-Day Administrative Filing Procedures and Guidelines, Hamilton Southeastern Utilities, Inc. ("HSE") submits herewith revised tariff sheets reflecting the new tax rate applicable to it as a result of the Tax Cuts and Jobs Act of 2017 (the "Tax Act").

Due to the Tax Act, HSE converted from an S-corporation to a C-corporation effective January 1, 2018 in accordance with Section 1362(d) of the Internal Revenue Code. By converting to a C corporation, HSE is now subject to the Tax Act's income tax rate of 21 %, and as a result, the revised tariff sheets included in this filing reflect an across-the-board rate decrease to HSE's base monthly rates. HSE requests Commission approval of the revised charges as reflected in the revised tariff sheets.

In support of the requested charges, this 30-day filing includes the following exhibits:

• Exhibit A - Verified statement of HSE • Exhibit B - Customer notice • Exhibit C - Revised tariff • Exhibit D - Redlined tariff (comparing existing tariff to revised tariff) • Exhibit E - Rate calculations • Exhibit F - C corporation conversion documents

HSE appreciates your assistance in processing this request through the Commission's 30-day filing procedures. The contact information regarding this filing is:

19149311.1

2700 Market Tower, 10 West Market Street Indianapolis, IN 46204

317.635.8900 main

317.236.9907 fax www.bgdlegal.com

kpeerman

New Stamp

BINGHAM GREENEBAUM DOLL LLP

Mary Becerra I IURC Re: Cause No. 45032 March 26, 2018 Page 2

Randolph L. Seger (240-49) Michael T. Griffiths (26384-49) Bingham Greenebaum Doll LLP 2700 Market Tower 10 West Market Street Indianapolis, Indiana 46204 (317) 63 5-8900 (phone) (317) 236-9905 (fax) [email protected] [email protected]

The Office of Utility Consumer Counselor is being provided a copy of this 30-day filing. If you have any questions or concerns about this submission, please give me a call.

Sincerely,

~~ Michael T. Griffiths

Enclosures

Cc: William Fine, Indiana Utility Consumer Counselor (w/encl.)

19149311.1

Exhibit A

VERIFIED STATEMENT IN SUPPORT OF 30-DAY FILING

TO THE INDIANA UTILITY REGULATORY COMMISSION:

1. Hamilton Southeastern Utilities, Inc. is requesting revisions to its tariff in accordance with the Commission's order in Cause No. 45032 to reflect the new tax rate applicable to it as a result of the Tax Cuts and Jobs Act of2017.

2. In accordance with 170 IAC 1-6-6, affected customers are being notified by a legal notice transmitted for publication in the Indianapolis Star, a daily newspaper of general circulation published in Marion County, Indiana that has a circulation encompassing the highest number of the utility's customers affected by the filing. The notice will also be placed on the utility's website and in a public place at the utility's local customer service office.

3. A copy of the above-referenced legal notice is attached as Exhibit B.

I affirm under penalties for perjury that the foregoing representations are true to the best of my knowledge, information, and belief.

')/~ Dated this~ day of March, 2018.

19157625.1

~~ Kendall W. Cochran President of Hamilton Southeastern Utilities, Inc.

Exhibit B

LEGAL NOTICE

Notice is hereby given that Hamilton Southeastern Utilities, Inc. (“HSE”) will be filing a request

with the Indiana Utility Regulatory Commission (“IURC”) on or before March 25, 2018 to adjust

its rates to comply with the new tax structure imposed by the Tax Cuts and Jobs Act of 2017 as

ordered by the IURC in Cause No. 45032. HSE will be requesting an across-the-board rate

decrease affecting all customer classes. HSE expects approval of the request and filing at a

minimum of thirty (30) days following the date of such filing. Any objections to the filing should

be made to the following: Indiana Utility Regulatory Commission, Attn: Secretary of the

Commission, 101 W. Washington Street, Suite 1500E, Indianapolis, Indiana 46204; and to the

Office of the Utility Consumer Counselor, 115 W. Washington Street, Suite 1500S, Indianapolis,

Indiana 46204.

Exhibit C

Issued by Kendall W. Cochran Effective: ___________Pursuant to IURC Order in Cause No. 45032

Hamilton Southeastern Utilities, Inc. I.U.R.C. No. 5 ORIGINAL PAGE 1

TARIFF

of

HAMILTON SOUTHEASTERN UTILITIES, INC.

for the Provision of

SEWAGE DISPOSAL SERVICE

in the

AREAS OF HAMILTON COUNTY, INDIANA

ISSUED PURSUANT TO IURC CAUSE NOS. 38685, 38819, 38897, 39567, 40501, 41528, 41745, 41752, 41798, 43435, 43581, 43761, 44683, 45032

Exhibit C



RESERVED FOR FUTURE USE

Exhibit C


Hamilton Southeastern Utilities, Inc. I.U.R.C. No. 5ORIGINAL PAGE 3

SCHEDULE 1 RATES AND CHARGES FOR SEWER SERVICE

Locality Where Applicable

The following rates and charges are applicable to customers located in areas within Hamilton Southeastern Utilities, Inc.’s authorized service territory who connect to the Utility’s system, except as provided in Schedule 2. The rates in this schedule are subject to the Sewer Tracker identified in Appendix B.

General Service Rates

(A) Non-metered Rates for One Month Consumption Periods - Residential

Type of Service Rate Per Month

Single Family Residence: $34.99Two-Family Residence (Duplex): 62.98Apartments (per unit): 24.49

(B) Non-Metered Rates for One Month Consumption Periods - All Other Non-Residential Users


Commercial, Industrial, Retail, Office: $69.98

High consumption facilities, which discharge more than 600 gallons per day of wastewater, will be categorized as “Special Users” as indicated below.

(C) Non-Metered Rates for One Month Consumption Periods - Special Users


Special User – high consumption facilities which discharge more than 600 gallons per day of wastewater shall be charged at the rate per Equivalent Dwelling Unit, as defined in Appendix A attached hereto, per month.

$34.99

Exhibit C



Connection Fee

Fee per Equivalent Dwelling Unit (as defined in Exhibit 1 attached hereto) connecting to the Utility’s system:

$305.00

Re-Connection Fee

Fee per physical connection for reconnection following disconnection for failure to pay sewer bill:

$305.00

Preliminary Plan Review Fee

Fee per Equivalent Dwelling Unit for the review and preparation of connection plans.

$100.00

System Development Charges

Fee per Equivalent Dwelling Unit for capital improvements to the Utility’s system.

$2,850.00

Collection and Deferred Payment Charge

All bills for sewer service not paid within 17 days from the billing date thereof, as stated in such bills, shall be subject to a collection or deferred payment charge of 10% on the first $3.00 and 3% on the excess over $3.00.

Bad Check Charge

Applicable when a customer’s check is returned by their bank for non-payment.

Charge per Returned Check $ 20.00

Exhibit C



Fats, Oils and Grease (“FOG”) Charge

Applicability: Customers that qualify as a FOG Facility, as defined in Hamilton Southeastern Utilities’ rules and regulations, shall be subject to a monthly charge forFOG. The FOG charge will support the additional costs of administering, monitoring and treating the excessive waste associated with FOG Facility establishments.

Rate: $30.00 per month

Additional Charge: If violations of Hamilton Southeastern Utilities’ FOG rules occur, monthly inspections will commence at a cost of $90.00 per inspection until the violations cease.

Exhibit C





The following rates and charges are applicable to customers located in the Flatfork Creek Utilities, Inc. certified territory (i.e., the Certificate of Territorial Authority issued in Cause No. 38762 and transferred to Hamilton Southeastern Utilities, Inc. pursuant to the Commission’s Order issued September 25, 2002 in combined Cause Nos. 41745, 41752, and 41798). The rates in this schedule are subject to the Sewer Tracker identified in Appendix B.




Single Family Residence: $34.99Two-Family Residence (Duplex): 62.98Apartments (per unit): 24.49



Commercial, Industrial, Retail, Office: $69.98




Special User $34.99

High consumption facilities which discharge more than 600 gallons per day of wastewater shall be charged at the rate per Equivalent Dwelling Unit, as defined in Appendix A attached hereto, per month.

Exhibit C



Connection Fee


$305.00

Re-Connection Fee


$305.00



$100.00



$3,650.00



Bad Check Charge



Exhibit C




Applicability: Customers that qualify as a FOG Facility, as defined in Hamilton Southeastern Utilities’ rules and regulations, shall be subject to a monthly charge for FOG. The FOG charge will support the additional costs of administering, monitoring and treating the excessive waste associated with FOG Facility establishments.



Exhibit C



Appendix A

EDU EQUIVALENCY CHART

RATIO OF SEWER USAGE OF SINGLE FAMILY RESIDENCETO OTHER TYPES OF USES

A single family residence is equivalent to 300 gallons per day.

Type of Service Equivalent Daily Usage

01 Single Family Residence 1.0

02 Two Family Residence 1.8

03 Multi-Family & Apartments-per unit .7

04 Mobile Home & Parks-per unit .8

05 Motels & Hotels-per unit (Restaurant see below) .4

06 Service Clubs and Churches – per 200 members orfraction thereof: Without Kitchen 1.0

With Kitchen 2.0

07 Office use-per 1,000 square feet .5

08 Health Service Office – per exam room .6

09 Personal Care – per chair .4

10 Restaurant – per seat .1Food Drive In – per car space .2Fast Food – per employee .2

11 Food and Drug Retail Service – per employee .2

12 Laundry – per washer 1.3Car Wash – per bay 2.0

13 Service Station 1.5

Exhibit C



14 Retail Sales & Service – each 3 employees or fraction thereof 1.0

15 Manufacturing – per 8 employees – sanitary use only 1.0Manufacturing other – set by HSEWarehouses – per 40,000 square feet 1.0

16 Bars and Cocktail Lounges – per seat – without restaurant .05

17 Bowling Alley – per alley .4

18 Bowling Alley with Bar – per alley 2.0

19 Dentist Office – per chair 1.4

20 Physician’s Office – per examining room .6

21 Schools with Gym and Cafeteria – per student .06Without Gym and Cafeteria – per student .04

22 Speculative Commercial/Industrial – per acre 1.0

23 Other uses as determined by HSE

Ratios indicated above are subject to change by HSE.

Exhibit C



Appendix B

SEWER TRACKER

Applicable to All Rates*

The Sewer Tracker occasioned solely by changes in the cost of sewage disposal

service is $4.75 per EDU per month.

*In addition to the base rates and charges.

Exhibit D

Effective: ___________Issued by Kendall W. Cochran Pursuant to IURC Order in Cause No. 4503244683

Hamilton Southeastern Utilities, Inc. I.U.R.C. No. 5 4 ORIGINAL PAGE 1

TARIFF

of


for the Provision of

SEWAGE DISPOSAL SERVICE

in the

AREAS OF HAMILTON COUNTY, INDIANA

ISSUED PURSUANT TO IURC CAUSE NOS. 38685, 38819, 38897, 39567, 40501, 41528, 41745, 41752, 41798, 43435, 43581, 43761, 44683, 45032

Exhibit D



RESERVED FOR FUTURE USE

Exhibit D





The following rates and charges are applicable to customers located in areas within Hamilton Southeastern Utilities, Inc.’s authorized service territory who connect to the Utility’s system, except as provided in Schedule 2. The rates in this schedule are subject to the Sewer Tracker identified in Appendix B.




Single Family Residence: $34.9935.04Two-Family Residence (Duplex): 62.9863.07Apartments (per unit): 24.4924.53



Commercial, Industrial, Retail, Office: $69.9870.08




Special User – high consumption facilities which discharge more than 600 gallons per day of wastewater shall be charged at the rate per Equivalent Dwelling Unit, as defined in Appendix A attached hereto, per month.

$34.9935.04

Exhibit D



Connection Fee


$305.00

Re-Connection Fee


$305.00



$100.00



$2,850.00



Bad Check Charge



Exhibit D







Exhibit D





The following rates and charges are applicable to customers located in the Flatfork Creek Utilities, Inc. certified territory (i.e., the Certificate of Territorial Authority issued inCause No. 38762 and transferred to Hamilton Southeastern Utilities, Inc. pursuant to the Commission’s Order issued September 25, 2002 in combined Cause Nos. 41745, 41752, and 41798). The rates in this schedule are subject to the Sewer Tracker identified in Appendix B.




Single Family Residence: $34.9935.04Two-Family Residence (Duplex): 62.9863.07Apartments (per unit): 24.4924.53



Commercial, Industrial, Retail, Office: $69.9870.08




Special User $34.9935.04

High consumption facilities which discharge more than 600 gallons per day of wastewater shall be charged at the rate per Equivalent Dwelling Unit, as defined in Appendix A attached hereto, per month.

Exhibit D



Connection Fee


$305.00

Re-Connection Fee


$305.00



$100.00



$3,650.00



Bad Check Charge



Exhibit D







Exhibit D



Appendix A

EDU EQUIVALENCY CHART

RATIO OF SEWER USAGE OF SINGLE FAMILY RESIDENCETO OTHER TYPES OF USES

A single family residence is equivalent to 300 gallons per day.

Type of Service Equivalent Daily Usage

01 Single Family Residence 1.0

02 Two Family Residence 1.8

03 Multi-Family & Apartments-per unit .7

04 Mobile Home & Parks-per unit .8

05 Motels & Hotels-per unit (Restaurant see below) .4

06 Service Clubs and Churches – per 200 members orfraction thereof: Without Kitchen 1.0

With Kitchen 2.0

07 Office use-per 1,000 square feet .5

08 Health Service Office – per exam room .6

09 Personal Care – per chair .4

10 Restaurant – per seat .1Food Drive In – per car space .2Fast Food – per employee .2

11 Food and Drug Retail Service – per employee .2

12 Laundry – per washer 1.3Car Wash – per bay 2.0

13 Service Station 1.5

Exhibit D



14 Retail Sales & Service – each 3 employees or fraction thereof 1.0

15 Manufacturing – per 8 employees – sanitary use only 1.0Manufacturing other – set by HSEWarehouses – per 40,000 square feet 1.0

16 Bars and Cocktail Lounges – per seat – without restaurant .05

17 Bowling Alley – per alley .4

18 Bowling Alley with Bar – per alley 2.0

19 Dentist Office – per chair 1.4

20 Physician’s Office – per examining room .6

21 Schools with Gym and Cafeteria – per student .06Without Gym and Cafeteria – per student .04

22 Speculative Commercial/Industrial – per acre 1.0

23 Other uses as determined by HSE

Ratios indicated above are subject to change by HSE.

Exhibit D



Appendix B

SEWER TRACKER

Applicable to All Rates*

The Sewer Tracker occasioned solely by changes in the cost of sewage disposal

service is $4.75 per EDU per month.

*In addition to the base rates and charges.

Exhibit EWorkpapersPage 1 of 2

19186983.1

Figure 1. Per IURC 44683

Income Brackets 50,000.00$ 443,727.00$ 493,727.00$ 493,727.00$

Fed / Sta Tax Rates 21.00% 27.00% 26.39% 26.82%

Computed Tax 10,500.00$ 119,806.29$ 130,306.29$ 132,417.58$

Per IURC 44683

Income Brackets 50,000.00$ 414,103.38$ 464,103.38$ 493,727.00$

Fed / Sta Tax Rates 21.00% 27.00% 26.35% 26.82%

Computed Tax 10,500.00$ 111,807.91$ 122,307.91$ 132,417.58$

Figure 2. C-Corp - SALT C-Corp No Salt Per IURC 44683

Combined Fed & Sta Taxes 122,308$ 130,306$ 132,418$

Variance from IURC 44683 (10,110)$ (2,111)$

Times conversion factor 0.449702 (4,546)$ (949)$ IURC Approved

Impact of Computed Tax Allowance Variance (14,656)$ (3,061)$ 139,305$

Impact on Rate Increase - IURC 44683 -0.12% -0.03% 1.17%

Normalized Test Year Revenue (subject to rates) 1.05% 11,906,410$

C-Corp with No SALT Deduction - IN 6% Tax

C-Corp With SALT Deduction - IN 6% Tax

Exhibit EWorkpapersPage 2 of 2

19186973.1

MONTHLY USER FEE - FLAT RATE

PRESENT INCREASE PROPOSED

1.05%

34.63$ 34.63$ $0.36 34.99$

TOTAL RATE INCLUDING W.S.C.T.F. 4.75$ 39.38$ $0.36 39.74$

39.38$ 0.91%


SCHEDULE OF PRESENT & PROPOSED SEWAGE RATES & CHARGES

SINGLE FAMILY RESIDENTIAL

EQUIVALENT DWELLING UNIT (EDU) -

EXCLUDING THE W.S.C.T.F. APPROVED

BY IURC IN JANUARY, 2016

Cause No. 44683

Schedule 8 Revised

March 9, 2018

Department of the Treasury Internal Revenue Service Cincinnati, OH 45999

Hamilton Southeastern Utilities · 11901 Lakeside Drive

Fishers, Indiana 46038-1316 (317) 577-2300

FAX (317) 577-0089

Re: Revocation of S Corporation Election of Hamilton Southeastern Utilities, Inc., Taxpayer Identification Number: 35-17 45244

To Whom It May Concern:

Notice is hereby given, pursuant to Section 1362(a) of the Internal Revenue Code, that Hamilton Southeastern Utilities, Inc., a corporation incorporated in the State of Indiana, with address of 11901 Lakeside Drive, Fishers, IN 46038, revokes its S corporation election filed with you with on IRS Form 2553 with an effective date of May 5, 1988.

The number of shares of the corporation's stock (including non-voting stock) issued and outstanding at the time of this revocation is 2,840. The first taxable year for which this revocation is intended to be effective is the corporation's taxable year beginning January 1, 2018. Required shareholder consents to this revocation of election are attached.

Sincerely,

~-td~ Kendall W. Cochran President of Hamilton Southeastern Utilities, Inc.

Shareholders' Consentto Voluntary Revocation of Election of S Corporation Status

The undersigned, being shareholder(s) of Hamilton Southeastern Utilities, Inc., a corporation incorporated in the State of Indiana, hereby consent to the revocation of its election under Section 1362(a) of the Internal Revenue Code to which this consent is attached. The address of the corporation is 11901 Lakeside Drive, Fishers, IN 46038. The corporation's Taxpayer Identification Number is 35-1745244. Each of the undersigned shareholders taxable year ends on December 31.

The undersigned shareholders' name, address, taxpayer identification number, number of shares owned, and date acquired are as follows:

Shareholder Name:

Robert L. Bowen Family Wealth Trust,

F/B/O Kristin Bowen Roberts

Robert L. Bowen Family Wealth Trust,

F/B/O A. Douglas Bowen 111

Kendall W. Cochran

Corby 0. Thompson

Gregory D. Thompson

Address:

11901 Lakeside Dr

Fishers, IN 46038

11901 Lakeside Dr

Fishers, IN 46038

11901 Lakeside Dr

Fishers, IN 46038

11901 Lakeside Dr

TIN:

---·-~--

Fishers, IN· 46038 ••••

11901 Lakeside Dr

Fishers, IN 46038 •••&

Date No. of Shares: Acquired:

355 Shares 2012 --~-···--·.,.,.,._,,-~.

355 Shares 2012

532.5 Shares 1989

177.5 Shares 1996

177.5 Shares 1996

~ c/cc)'.8 Title: ________ Date: ____ _

~ c::-/ c:z.//& Title: ________ Date: ____ _

Title: Date: 3/i:dc? z_/";., Its : ) ·-Signed: ~ :-=::-........-__:-._ Title: $£.ellPf~

e::6ki3't 0-~~~ . Date:

Signed: ~ /) ?J~ Title: _&~l/_A_l'-_loi~11_,.; _____ Date: ~/z?J/!?

Shareholders' Consent to Voluntary Revocation of Election of S Corporation Status

The undersigned, being sharehoider(s) of Hamilton Southeastern Utilities, Inc., a corporation incorporated in the State of Indiana, hereby consent to the revocation of its election under Section 1362(a) of the Internal Revenue Code to which this consent is attached. The address of the corporation is i 1901 Lakeside Drive, Fishers, IN 46038. The corporation's Taxpayer Identification Number is 35-1745244. Each of the undersigned shareholders taxable year ends on December 31.

The undersigned shareholders' name, address, taxpayer identification number, number of shares owned, and date acquired are as follows:

Shareholder Name:

J. Barry Schneider

~ .. -·~-----

Signed:

Signed: __

Signed:

Signed:

Signed:

Address:

11901 Lakeside Dr

Fishers, IN 46038

TIN:

.. .--... - ·-... -. ...

Title: Jtffl.O..£J±oLP€/l...

Title:

Title:

Title:

Title:

Date No. of Shares: Acquired:

71 Shares 2016

Date: 3fc:r)1'lz_

Date:

Date:

Date:

Date:

Documents

Hamilton Southeastern Utilities, Inc. 's 30-Day Filing ... - Hamilton SE.pdf · Applicability:Customers that qualify as a FOG Facility, as defined in Hamilton Southeastern Utilities’