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PURA's expense panel grills Hazardville Water on chemical costs, related-party rent and payroll reconciliations
Summary
During O&M questioning PURA staff flagged a near-45% proposed increase in chemical costs (company said timing and unit misclassification partly explain the gap), identified lease payments to a parent-owned real-estate company and requested the lease document, and probed payroll allocations and board/D&O charges; staff issued multiple read-ins and late-file requests to reconcile invoices and pro forma adjustments.
PURA staff and OCC spent significant time examining operation and maintenance expenses, focusing on three areas that could materially affect the revenue requirement: chemical treatment costs, related-party lease payments, and payroll allocations.
Chemicals: Staff identified large increases on Schedule C-3.11 and asked why the company proposes nearly a 45 percent increase in several chemical line items for the rate year. The company explained the test year appeared artificially low because of purchase timing (some quantities bought late in the prior year), and acknowledged at least one worksheet line used pounds where gallons should have been reported. PURA entered a read-in (RU96 Worksheet Cell J72) asking the…
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