Wow. Sorry for my tardiness! Lots has happened over the past week. Sincerest apologies.
Very good at noticing the interaction with Water techniques. Essentially water acts as a medium for the lightning. So if you use a water technique which can extend to long range and it is infused with this technique then this technique will reach that range while infusing the water with lightning creating a water/lightning combination with an increased 10 damage.
And yes. This jutsu requires no hand seals. Always a neat little characteristic. Techniques that require no hand seals are fantastic.
Depends on how you use it. Large scale water techniques can easily strike multiple opponents and thus the damage would be spread between the two. Just depends purely on how you use it.