5. Financial Ability and Revenue Requirement
Mayacama provided as Exhibit F to the application its balance sheet as of December 31, 2000 and its income statement from inception on June 17, 1999 through December 31, 2000. Mayacama's assets at December 31, 2000 are approximately $50 million and are adequate for purposes of the proposed public utility sewer services. Mayacama initially did not provide a revenue requirement or a rate design as required under Rule 18(h) of the Commission's Rules of Practice and Procedure.
On June 4, 2002, Mayacama submitted a revised summary of earnings, revenue requirement and rate design. The summary of earnings, corrected by the Water Division for numerous mathematical errors, appears below:
Applicant's Estimated Summary of Earning
Mayacama |
(in 2002 $'s) | ||||
June 4, 2002 Submittal |
2002 |
2003 |
2004 |
2005 |
2006 |
OPERATING REVENUES |
|||||
Cottage Revenues |
57,288 |
35,520 |
36,264 |
37,032 |
37,812 |
Casitas Revenue |
47,568 |
29,496 |
30,120 |
30,744 |
31,404 |
Golf Club Facilities Revenues |
45,024 |
27,924 |
28,500 |
29,100 |
29,724 |
TOTAL REVENUES |
149,880 |
92,940 |
94,884 |
96,876 |
98,940 |
OPERATING EXPENSES |
|||||
Contract Work - Lab |
9,500 |
9,785 |
10,050 |
10,380 |
10,690 |
Contract Work - Other |
74,000 |
24,000 |
24,000 |
24,000 |
24,000 |
Other Service/Rent |
1,200 |
1,236 |
1,273 |
1,311 |
1,350 |
Other Supplies |
1,000 |
1,030 |
1,060 |
1,092 |
1,125 |
Admin. & General |
12,500 |
12,875 |
13,260 |
13,660 |
14,068 |
General Expenses Parts/Supplies |
1,200 |
1,236 |
1,273 |
1,311 |
1,350 |
Utilities |
17,500 |
18,025 |
18,565 |
19,122 |
19,696 |
Chemical Costs |
15,500 |
15,965 |
16,443 |
16,937 |
17,445 |
Sludge Disposal |
4,500 |
4,635 |
4,774 |
4,912 |
5,064 |
SUBTOTAL |
136,900 |
88,787 |
90,698 |
92,725 |
94,788 |
Depreciation Expense |
0 |
0 |
0 |
0 |
0 |
Taxes Other Than Income Taxes |
0 |
0 |
0 |
0 |
0 |
Income Taxes & Franchise Fee |
0 |
0 |
0 |
0 |
0 |
TOTAL DEDUCTIONS |
136,900 |
88,787 |
90,698 |
92,725 |
94,788 |
NET REVENUE |
12,980 |
4,153 |
4,186 |
4,151 |
4,152 |
RATE BASE |
|||||
Average Plant |
0 |
0 |
0 |
0 |
0 |
Average Accumulated Depreciation |
0 |
0 |
0 |
0 |
0 |
NET PLANT |
0 |
0 |
0 |
0 |
0 |
RATE BASE |
0 |
0 |
0 |
0 |
0 |
RETURN ON MARGIN1 |
9.5% |
4.7% |
4.6% |
4.5% |
4.4% |
The following shows Water Division's Summary of Earnings, which is based on more recent data and more in-depth analysis as described in its report:
Water Division's Estimated Summary of Earnings
Staff Estimates |
Mayacama | ||||
2003 |
2004 |
2005 |
2006 |
2006 | |
OPERATING REVENUES |
|||||
Cottage Revenues |
6,501 |
13,031 |
26,160 |
41,350 |
57,288 |
Casitas Revenue |
8,866 |
14,810 |
20,811 |
30,318 |
47,568 |
Golf Club Facilities Revenues |
24,087 |
26,824 |
26,924 |
27,457 |
45,036 |
TOTAL REVENUES |
39,454 |
54,665 |
73,895 |
99,125 |
149,892 |
OPERATING EXPENSES |
|||||
Purchased Power |
8,510 |
11,745 |
15,795 |
21,981 |
18,373 |
Other Volume Related Expenses |
8,199 |
11,528 |
15,742 |
20,997 |
20,997 |
Employee Labor |
0 |
0 |
0 |
0 |
0 |
Materials |
902 |
1,268 |
1,732 |
2,310 |
2,310 |
Contract Work - General Expenses |
9,800 |
13,548 |
18,245 |
24,000 |
74,000 |
Contract Work - Water Testing |
3,879 |
5,363 |
7,222 |
9,500 |
9,500 |
Transportation Expenses |
0 |
0 |
0 |
0 |
0 |
Other Plant Maintenance Expense |
0 |
0 |
0 |
0 |
0 |
Office Salaries |
0 |
0 |
0 |
0 |
0 |
Management Salaries |
0 |
0 |
0 |
0 |
0 |
Employee Pensions and Benefits |
0 |
0 |
0 |
0 |
0 |
Uncollectible Accounts Expense |
0 |
0 |
0 |
0 |
0 |
Office Services and Rentals |
0 |
0 |
0 |
0 |
0 |
Office Supplies and Expenses |
0 |
0 |
0 |
0 |
0 |
Professional Services |
0 |
0 |
0 |
0 |
0 |
Insurance |
0 |
0 |
0 |
0 |
0 |
Regulatory Commission Expense |
0 |
0 |
0 |
0 |
0 |
General Expenses |
0 |
0 |
0 |
0 |
1,260 |
SUBTOTAL |
31,290 |
43,450 |
58,736 |
78,787 |
126,439 |
Depreciation Expense |
0 |
0 |
0 |
0 |
0 |
Taxes Other Than Income Taxes |
0 |
0 |
0 |
0 |
0 |
Income Taxes & Franchise Fee |
1,905 |
2,525 |
3,413 |
4,579 |
0 |
TOTAL DEDUCTIONS |
33,195 |
45,975 |
62,149 |
83,366 |
126,439 |
NET REVENUE |
6,259 |
8,690 |
11,746 |
15,759 |
23,453 |
RATE BASE |
|||||
Average Plant |
0 |
0 |
0 |
0 |
0 |
Average Accumulated Depreciation |
0 |
0 |
0 |
0 |
0 |
NET PLANT |
0 |
0 |
0 |
0 |
0 |
Contributions |
0 |
0 |
0 |
0 |
0 |
RATE BASE |
0 |
0 |
0 |
0 |
0 |
RETURN ON MARGIN |
20% |
20% |
20% |
20% |
19% |
