20240422AVU to Staff 1-3.pdf

RECEIVED
Monday,April 22,2024 10:32 AM
AVISTA CORPORATION IDAHO PUBLIC
RESPONSE TO REQUEST FOR INFORMATION UTILITIES COMMISSION
JURISDICTION: IDAHO DATE PREPARED: 04/17/2024
CASE NO: AVU-E-24-05 WITNESS:
REQUESTER: IPUC RESPONDER: Tia Benjamin
TYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff-001 TELEPHONE: [phone]
REQUEST:
In reference to the OH Transformer and UG Transformer work order cost estimates provided on
pages 23 and 30 of the Application. Please respond to the following:
a. Please explain why the Electric Admin and Acct, Electric Labor Overhead, Electric Material
Overhead, and Electric Overhead line items do not add up to the Overhead Amt total like the
other work order cost estimates.
b. Please explain why the Electric Admin and Acct, Electric Labor Overhead, Electric Material
Overhead, and Electric Overhead line items costs are not included as part of the weighted
allocation calculation that determines the fixed cost for these transformers.
c. For UG Transformers, please explain the drivers that caused the unit price reductions for 25
kVA, 37.5 kVA, and 100 kVA transformers, while the 15 kVA, 50 kVA, and 75 kVA
transformers unit price increased compared to last year.
RESPONSE:
The OH Transformer and UG Transformer workorders include a category for "Deferred Amt".
This category includes the direct cost of the transformer and the associated overheads specific to
the transformer materials type. The minor materials, labor and vehicle expenses are separate from
the Deferred Amt and the overhead costs associated with these items is displayed in the Overhead
Amt. Please see Staff_PR_001 Attachment A where the Company is providing a pivot table from
the data provided in workpaper"Avista Idaho Sch 51 Assembly List Details for 2024 costs"which
shows in detail the portion of overhead costs that are included within the Deferred Amt and listed
separately in the Overhead Amt box for both the OH Transformer workorder and the UG
Transformer workorder.
As discussed in Avista's application,there is a lot of variability in transformer pricing at this time.
Avista attempts to source transformers at the best price possible while also needing to meet system
requirements and supply lead times for ensuring that we have transformers available to carry out
customer requests. This means Avista is sourcing transformers from different vendors through
time to meet our needs of having stock available. Avista's Maximo workorder system uses the
cost of transformers currently in the storeroom for determining the material cost for the workorder,
acquired from different vendors at various points in time at different costs. Below is a
demonstration of the cost from two different transformer vendors if Avista were to purchase them
today:
Transformer Type
PM 37.5 KVA 13200GRDY/7620 240/120 NT $5010 $8984
PM 25 KVA 13200GRDY/7620 240/120 NT $4780 $7822
PM 100 KVA 13200GRDY/7620 240/120 NT $6460 $14,550

The reduction in transformer cost from the 2023 Line Extension filing to 2024 Line Extension
filing would indicate that the transformers available in the storeroom at that time were sourced at a
lower cost then at the time for the previous filing, likely able to be sourced from a lower cost
vendor at that time.

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 04/17/2024
CASE NO: AVU-E-24-05 WITNESS:
REQUESTER: IPUC RESPONDER: Tia Benjamin
TYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff-002 TELEPHONE: [phone]
REQUEST:
Please explain the major drivers that caused the 24%increase in the Overhead Service Circuit cost
from last year.
RESPONSE:
The only material component of the Overhead Service Circuit is #2 Triplex Conductor. Over the
past few years, there has been some difficulty sourcing this item, driving the price up. Avista's
workorder system uses the existing stock on hand in the storeroom for determining the costs to
assign to each workorder. As can be seen in the table below. The price of stock on hand has gone
up over time, contributing to the overall workorder cost increase.
Material Unit Price
Cost material only)
2024 $72.24 $1.09
2023 $45.54 $0.69

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 04/17/2024
CASE NO: AVU-E-24-05 WITNESS:
REQUESTER: IPUC RESPONDER: Tia Benjamin
TYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff-003 TELEPHONE: [phone]
REQUEST:
Please provide a copy of the workpapers showing the calculations of the overhead rates used in the
work order cost estimates and a copy of the Overhead Policy document that was followed in the
application of overheads. Please provide workpapers in electronic format with all formula enabled
and inputs identified by their source.
RESPONSE:
Please see Staff_PR_003 Attachment A for the calculation which averages the six months of
overheads by category which are applied to the work orders.
Please see Staff_PR 003 Attachment B for the Overhead Policy which gives an overview of how
the different categories are managed and applied.