Loading...
HomeMy WebLinkAbout20250430Annual ISQ Program Report.pdf I 11 RECEIVED Avista Corp. April 30, 2025 1411 East Mission Ave.,P.O. Box 3727 IDAHO PUBLIC Spokane,WA 99220-0500 UTILITIES COMMISSION Telephone: 509-489-0500 Toll Free: 800-227-9187 April 30, 2025 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd. Bldg. 8, Ste. 201-A Boise, Idaho 83714 RE: Avista Utilities 2024 Idaho Service Quality (ISQ) Program Report Dear Commission Secretary: Attached for electronic filing in Case Nos. AVU-E-18-10 and AVU-G-18-06 is the 2024 Idaho Service Quality (ISQ) Program Report of Avista Corporation, dba Avista Utilities (Avista or the Company), pursuant to the Company's electric tariff Schedule 85 and natural gas Schedule 185. If you have any questions regarding this filing, please contact me at(509) 495-7839 or j aime.majure@avistacorp.com. Sincerely, 14/,"w arrw Jaime Majure Regulatory Affairs Manager Avista Utilities SERVICE QUALITY REPORT I D A H O A s�r V.4' .. 1 FA ��` • ,.�� � �• - n �i . � 1 �/,��,'. •• low- all .- �■ 'a• ■,III I'I ' ill •- _ 'JillD111... - ,Ill T 1U _ � � mill __ Table of Contents I. Introduction................................................................................................................... 3 II. Executive Summary...................................................................................................... 3 Customer Service Measures -Results for 2024 ..........................................................4 Electric System Reliability- Results for 2024............................................................4 Customer Service Guarantees—Results for 2024....................................................... 7 III. Customer Service Measures.......................................................................................... 7 Measure 1: Customer Satisfaction with the Telephone Service provided by Avista's CSRs .......................................................................................................................... 8 Measure 2: Customer Satisfaction with Avista's Field Service Representatives........ 9 Measure 3: Answering Our Customers' Calls Promptly........................................... 10 Measure 4: Avista's Response Time for Electric Emergencies................................ 11 Measure 5: Avista's Response Time for Natural Gas Emergencies ......................... 12 IV.Electric System Reliability ......................................................................................... 13 Measure 1: Number of Electric System Outages ...................................................... 14 Measure 2: Average Duration of Electric System Outages....................................... 15 V. Customer Service Guarantees..................................................................................... 15 Guarantee 1: Keeping Electric and Natural Gas Service Appointments................... 16 Guarantee 2: Prompt Restoration of Electric System Outage................................... 16 Guarantee 3: Promptly Turning on Electric or Natural Gas Service Upon Request. 17 Guarantee 4: Promptly Providing Cost Estimates to Customers for New Service ... 17 Guarantee 5: Promptly Responding to Customers' Bill Inquiries............................. 18 Guarantee 6: Promptly Responding to Customers' Meter Problems........................ 19 Guarantee 7: Providing Customers Advance Notice of Scheduled Electric Interruptions ..................................................................................................................................20 Appendix A— Service Quality Program Report Card............................................... 21 Appendix B - Definitions and Index Calculations .................................................... 22 Avista Utilities-2024 Idaho Service Quality Program Report 2 I. Introduction On December 28, 2017, the Commission issued Order No. 33953 in the Company's general rate case,1 approving the Settlement Stipulation filed by the Parties2 and requiring the Company to make additional compliance filings to meet the terms and conditions of the Settlement.As part of these filings, an initial draft of the proposed Idaho Service Quality (ISQ) Program (ISQ Program or Program) was provided to Commission Staff(Staff) on February 15, 2018. Through the course of subsequent discussions and collaborative efforts, Avista and Staff agreed on a set of service measures and accompanying benchmarks and reporting requirements that, taken together, provide an overall assessment of the quality of the Company's service to its Idaho customers. Referred to collectively as Avista's ISQ Program, and approved by the Commission on November 1,2018,with associated tariff Schedule 85 for electric service and Schedule 185 for natural gas service, these measures include: ✓ Five (5) individual measures of the level of customer service and satisfaction that the Company must achieve each year;3 ✓ Reporting on two (2) measures of electric system reliability; ✓ Seven (7) individual service standards through which Avista provides customers with payment or bill credit in the event the Company does not deliver the required service level (Customer Service Guarantees). Under this agreement,the Company also reports to its customers and the Commission annually on its prior-year performance in meeting these customer service quality and reporting requirements. The following report includes a summary of the 2024 annual results of its ISQ Program, followed by a more in-depth explanation of the measures themselves and associated annual outcomes. II. Executive Summary In compliance with Order No. 34181 in Case Nos. AVU-E-18-10 and AVU-G-18-06, Avista's 2024 ISQ Program Report (Report) provides the annual performance results for the Company's ISQ Program for 2024. During its 2024 Program year,Avista is pleased to report that the Company has again exceeded all of its Customer Service Measures and built upon its history of high customer satisfaction levels. The percent of customers satisfied with the Company's contact center and field services, based on survey results, show Avista achieved 96% and 98% satisfaction rates, 1 Case Nos.AVU-E-17-01 and AVU-G-17-02 2 Stipulation"Parties"included Avista,IPUC Commission Staff,Clearwater Paper Corporation,Idaho Forest Group, LLC,and the Community Action Partnership Association of Idaho(CAPAI). 3 Four individual Customer Service Measures exist within each of Avista's approved tariff schedules; the fourth benchmark differs in its requirements between electric and natural gas service, resulting in five separate measures altogether. Avista Utilities-2024 Idaho Service Quality Program Report 3 respectively.' In addition, the Company also celebrates a 100% success rate in restoring service within 24 hours of a customer-reported electric outage in 2024. Finally, Avista successfully met 99.93% of its applicable Customer Service Guarantees (Guarantees) in 2024,providing customers with a Guarantee credit in 25 out of 37,184 cases. The overall success rate of these Guarantees shows Avista's continued dedication to serving our customers. Avista is committed to pursuing further improvement in each of these areas as we continue our mission of improving our customers' lives through innovative energy solutions by providing safe, affordable, and reliable service now and into the future. Customer Service Measures - Results for 2024 Listed in Table No. 1 below are the five Customer Service Measures, including their respective service requirements (benchmarks), and the Company's performance results in meeting them for 2024. Avista achieved all of its customer service benchmarks for the year. Table No. 1 —2024 Results for Avista's Customer Service Measures Ben 2024PerformanceR Percent of customers satisfied with our contact At least 90% 96% ✓ center services,based on survey results Percent of customers satisfied with field At least 90% 98% ✓ services,based on survey results Percent of calls answered live within 60 At least 80% 87% ✓ seconds by our contact center Average time from customer call to arrival of No more than 65 field technicians in response to electric system minutes 52 minutes ✓ emergencies,per year Average time from customer call to arrival of No more than 55 field technicians in response to natural gas minutes 41 minutes ✓ system emergencies,per year Electric System Reliability - Results for 2024 Table Nos. 2 and 3 below list the two measures of Washington and .. electric system reliability to be reported by Avista each year as part of its ISQ Program. Because the �3 ,. "mnet okra annual electric reliability results often vary im 1 ';_ substantially year-to-year (the case for any electric 1GFC settle '.,k • ..r utility's system),it is difficult to derive a meaningful •v° .K.Iiu assessment of the Company's system reliability °°''°"'°•�1� 1='M: -sM from any single-year's result. Consequently, in ••- — L•wi- Irk addition to reporting the current-year result for each •G°1^•° .1. st••°so° measure, Avista also reports the average value of LeGra d,. each measure for the previous five-year period, the average for the current five-year period (which includes the results for the current year - 2024), 4 Includes customers"satisfied"and"very satisfied". Avista Utilities-2024 Idaho Service Quality Program Report 4 and the historic"five-year rolling average"from 2019—2023. This data provides context for better interpreting each year's reliability results. Table No. 2—2024 Results for Number of Outages on Avista's System (SAIM) Number of Outages 2024 Current 5-Year Average Previous 5-Year Average System Results (2020-2024) (2019-2023) Average number of sustained 0.91 0.95 .96 outages(interruptions)per per Customer Per Customer Per Customer customer for the year(SAIFI)5 Table No. 3—Results for Duration of Outages on Avista's System in 2024 (SAIDI) Outage Duration 2024 Current 5-Year Average Previous 5-Year Average System Results I I I (2019-2023) Average duration of sustained outages(interruptions)per 131 Minutes 137 Minutes 138 Minutes customer for the year. (SAIDI)6 Figure Nos. 1 and 2 below show the "five-year rolling average" for each reliability measure from 2011 through 2024. As shown in the figures, the long-term trend for each reliability measure is stable during this period. The r trend in number of outages stays similar while the outage duration is declining, indicating an overall trend toward sra improved system reliability. The Company formally reports its reliability results for its entire electric system in its Washington Electric Service Reliability Report. Provided annually to Idaho as a courtesy, Avista also agreed to track and report its Idaho-specific annual results as part of the ISQ Program. In 2024, the Idaho-specific average number of electric system outages per customer in 2024 was 1.07, and the average total outage duration per customer was 165.98 minutes. This year's figure, although a bit lower, still aligns with the numbers reported in previous years. 5 See Appendix B for a more detailed definition of these reliability measures and calculation of indices. 6 See Appendix B. Avista Utilities-2024 Idaho Service Quality Program Report 5 Figure No. I —Historic Five-Year Rolling Average for Number of Electric Outages on Avista's Electric System (SAIFI) Historic Five-Year Averages of the Annual Number of Outages (SAIFI) 1.15 - 1.1 1.09 1.04 1.05 '^ 1.05 1 Q 1.01 .02 0 1 0.97 0.96 0.96 0.95 O 0.95 0.94 m D 0.9 z 0.85 lie ti �O�h, �0�6, y0�� �0�$, .1,0,E I0;0, Figure No. 2 —Historic Five-Year Rolling Average for Duration of Outages on Avista's Electric System (SAIDI) Historic Five-Year Averages of Annual Outage Duration (SAIDI) 160 151 149 151 148 139 142 142 141 138 137 140 z 120 z 100 80 0 LU 60 0 40 20 0 'LO�h 'L0�6 ti0�� ti0y� ti0�� ti0�0 ti0�� 'LOti� ;LOti3 'LOti0. 'LOtiti ,LO,� ,L0,3 .LO,yQ 'LOy� 'L0�6 'LO�� 'LOy� ti0y� ti0�0 Avista Utilities-2024 Idaho Service Quality Program Report 6 Customer Service Guarantees —Results for 2024 Our ISQ Program includes seven types of service for which we provide Customer Service Guarantees. In the event that the Company fails to meet a Customer Service Guarantee, Avista provides the customer or applicant with a bill credit or payment , in the amount of$50 in recognition of the inconvenience. All costs associated with the payment of Customer Service Guarantees are paid by the Company's shareholders and are not paid by our customers in their rates for service or otherwise. Table No. 4 below provides a list of the services covered in the ISQ Program Guarantees, as well as the Company's performance results in meeting these Guarantees in 2024. Table No. 4—2024 Results forAvista's Customer Service Guarantees Customer Service Guarantee SuccesMs I Keeping our electric and natural gas service appointments 1,389 6 $300 scheduled with our customers Restore service within 24 hours of a customer reporting an 7,781 0 $0 outage (excluding major storm events) Turn on power the same day the request is received 4,384 3 $150 Provide a cost estimate for new electric or natural gas 518 0 $0 service within 10 business days of receiving the request Investigate and respond to a billing inquiry within 10 394 0 $0 business days if unable to answer a question on first contact Investigate a reported meter problem or conduct a meter test 197 0 $0 and report the results within 20 business days Notify customers at least 24 hours in advance of a planned 22,496 16 $800 power outage lasting longer than 5 minutes Totals 37,159 25 $1,250 III. Customer Service Measures There are numerous touchpoints where customers interact with Avista, each playing a pivotal role in shaping their perception of the Company and the satisfaction they derive from our services. While Avista has tracked its customers' satisfaction with primary services such as customer contact center and field services for many years,we are equally invested in understanding whether we are meeting broader service expectations. In response to this interest,Avista conducts its Voice of the Customer (VOC) survey, which prompts customers to evaluate their overall satisfaction with our services. This holistic measure serves as a crucial indicator of how satisfied our customers are with the entirety of the integrated services and value provided by Avista.As depicted in Figure No. 3 below,Avista's overall customer satisfaction, encompassing both satisfied and very satisfied responses, has consistently ranged between 94% and 97% over the past decade. Avista Utilities-2024 Idaho Service Quality Program Report 7 Figure No. 3—Percent of Customers Satisfied or Very Satisfied with Avista's Overall Service Level 2015-2024 Percent of Customers Satisfied or Very Satisfied with Avista's Overall Service 2015-2024 0 100 96 97 96 96 97 97 97 94 95 94 a 90 LU 0 LL 80 Q z w U 70 a 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 These results closely align with the Idaho-specific satisfaction rate of 96%reported for the contact center and 98% for field services for 2024, as further described below. Consequently, we are confident that the outcomes of the five Customer Service Measures outlined in the subsequent sections collectively offer a comprehensive evaluation of our customers' overall satisfaction with the quality and value of our services. Measure 1: Customer Satisfaction with the Telephone Service Provided by Avista's CSRs The level of our customers'satisfaction with the telephone service provided by the Company's contact center will meet or exceed a benchmark of 90%.1 Several factors play a significant role in influencing our #77- customers' satisfaction with the quality of telephone service delivered by our Customer Service Representatives (CSRs) and contact center. We annually assess the importance of these 0 to our customers, along with their satisfaction levels. The factors, along with our customers' satisfaction rates (either satisfied or very satisfied) for each factor in 2024, are outlined below. ✓ The CSR handled the customer's call in a friendly, caring manner. (99%) ✓ The CSR was informed and knowledgeable. (97%) ✓ The CSR met the customer's needs promptly. (98%) ✓ The CSR gave the customer all the information they needed in one call. (96%) ✓ Customer was connected to a CSR in a reasonable amount of time. (97%) 7 See Avista's tariff Schedules 85(electric) 185(natural gas)for further specifics regarding this measure. Avista Utilities-2024 Idaho Service Quality Program Report 8 2024 Results — The annual survey results for this measure of customer satisfaction show that, overall,97%percent of Avista's customers were satisfied with the quality of the telephone service they received from our CSRs. Table No. S— Customer Satisfaction with Avista's Contact Center Representatives in 2024 lOustomer Satisfactioni2024 Achieved PerformanceCenter Representatives Quality Percent of customers satisfied or very satisfied 90%or Greater 97% with the quality of Avista's CSRs For the purpose of reporting our annual service quality performance under this Program, the Company will continue to use its system-wide results.Avista will also separately track and report the results for this measure for our Idaho-specific customers,though it is not a requirement of the ISQ Program. For 2024, the percent of Idaho customers satisfied or very satisfied with the Company's CSRs and contact center was 96%,with 90%of our customers noting they were"very satisfied" and 6% noting they were "satisfied". These results represent an approximate 1% decrease in customers reporting they were "very satisfied"; Avista will continue to monitor this trend in the upcoming year to ensure continued or increased satisfaction in the coming years. Measure 2: Customer Satisfaction with Avista's Field Service Representatives The level of our customers' satisfaction with the Company's field services will meet or exceed a benchmark of 90%.8 ..R c The quality of our field services and the satisfaction of our ' customers are influenced by several key factors. Annually, we gauge the significance of these factors to our customers and assess their satisfaction with each aspect of our service. Below are these factors, along with our customers' satisfaction levels (either satisfied or very satisfied)with each factor in 2024. ✓ The service representative kept customer informed of the status of their job. (95%) ✓ The service representative or service crew was courteous and respectful. (98%) ✓ The service representative or service crew was informed and knowledgeable. (98%) ✓ The service representative or service crew left the customer's property in the condition they found it. (97%) ✓ The service work was completed according to the customer's expectations. (96%) ✓ The overall quality of the work performed by Avista Utilities. (98%) $See Avista's tariff Schedules 85(electric) 185(natural gas)for further specifics regarding this measure. Avista Utilities-2024 Idaho Service Quality Program Report 9 2024 Results—The annual survey results for this measure, as reported in Table No. 6 below, show that 97%percent of our customers were satisfied with the service provided by Avista's field service representatives. Table No. 6— Customer Satisfaction with Avista's Field Services Representatives in 2024 Customeri2024 Achieved PerformanceRepresentatives Quality Percent of customers satisfied or very satisfied with 90%or Greater 97% the quality of Avista's field service representatives Satisfied V Avista will again continue to use its system-wide results for the purpose of reporting our annual service quality performance under this Program. The Company will also separately track and report the results for this measure for our Idaho customers only, although it is not a requirement of the ISQ Program. For 2024, the percent of Idaho customers satisfied or very satisfied with the Company's field service representatives was slightly higher than the system-wide results at 98%, with 90% of customers "very satisfied" and 8% "satisfied" with the quality of our field services. These results are an increase from the 97% reported in 2023, with a marked 2% increase in those customers noting they were "very satisfied" (from 88%to 90%). Measure 3: Answering Our Customers' Calls Promptly The percentage of customer calls answered live by a CSR within 60 seconds will average 80% or greater.9 This customer service measure serves as one of the service attributes contributing to customers' overall satisfaction with our CSRs and contact center. Commonly referred to as �► the "Grade of Service" (GOS), this measure is the average percentage of customer calls to our contact center that are answered live by a CSR within 60 seconds, for those customers who wish to speak with a CSR. When a customer calls Avista's contact center, the call is initially received by an automated (voice activated) phone system. The customer is presented with the option of using the phone system for self-service (e.g., checking their account balance or paying their bill) or to connect with a live CSR to address their service needs. Avista's response time in answering the customer's call is the time that elapses between the customer's request to speak to a representative and when their call is answered live by a CSR. Avista has maintained a service benchmark of 80% or greater for many years. Rather than establishing a higher GOS (e.g., 90%or a goal of answering calls within 30 seconds),which would demand increased staffing levels and may entail additional costs to customers, Avista has prioritized lower-cost or no-cost measures such as effective employee training and attribute coaching to maintain our high level of overall customer satisfaction with our CSRs and contact center. In addition to responding to customers effectively, Avista has implemented measures to help reduce the overall volume of customer calls, consequently reducing the service costs that are ultimately passed on to customers. These efforts include multiple communication channel options 9 See Avista's tariff Schedules 85(electric) 185(natural gas)for further specifics regarding this measure. Avista Utilities-2024 Idaho Service Quality Program Report 10 such as e-mail, online chat, customer self-service via website, or the automated phone system. These efforts not only help reduce the volume of calls to our contact center while still ensuring a high level of service at lower cost but also enhance the overall customer experience and satisfaction level. 2024 Results — In 2024, Avista's customers made a total of 495,176 qualifying calls to the Company that were answered live by a CSR. Of these calls, 432,790 were answered live in 60 seconds or less, for a GOS of approximately 87.3%, as shown in Table No. 7 below. Table No. 7—Percent ofAvista's Customer Calls Answered Live within 60 Seconds in 2024 Percent of i2024 Achieved Live Within 60 Seconds Percent of Avista's customer calls answered live by 80% or Greater 87% a CSR within 60 seconds Measure 4: Avista's Response Time for Electric Emergencies The average response time to an electric system emergency will not exceed 65 minutes for the year.10 When customers contact Avista to report an electric service emergency, the Company works with the customer to quickly ascertain the particular circumstances being reported and instructs the customer on how best to ensure the safety of themselves and others until help arrives. The Company immediately dispatches service personnel that is best situated to respond in the shortest time possible. Once at the scene, Avista's first priority is to make the situation safe for our customers, citizens, other emergency responders, and our employees. Restoration efforts commence once the site's safety is secured and necessary resources are present. The Company's ability to respond quickly to an electrical emergency is influenced by many factors, some of which include the urban or rural areas,the location of the nearest available respondent(especially in rural areas), the time of day, season of the year, weather conditions, traffic, and the presence of other simultaneous emergency events across the Company's system.For this measure,the response time to an electric emergency is the elapsed time between the confirmation of the emergency with the customer(when the dispatch field order is given) and when the Avista service person arrives at the scene. 2024 Results — The average response time for the year is calculated by dividing the sum of all applicable electric emergency response times by the total number of qualifying electric emergency incidents. Avista received 262 qualifying electric emergency reports in its Idaho service area in 2024, which had a cumulative response time of approximately 13,613 minutes. The resulting average response time for 2024 was nearly 52 minutes, as noted in Table No. 8 below. 10 See Avista's electric tariff Schedule 85 for further specifics regarding this measure. Avista Utilities-2024 Idaho Service Quality Program Report 11 Table No. 8—Avista's Response Time for Electric Emergencies in 2024 Avista's Response Time for Electric Emergencies Service m 2024 IlAchieved Quality Performancej Average time from customer call to the arrival of Avista's 65 Minutes 52 Minutes field technicians in response to electric system emergencies or Less Measure 5: Avista's Response Time for Natural Gas Emergencies The average response time to a natural gas system emergency will not exceed 55 minutes for the year.1] When customers call Avista to report a natural gas emergency, the Company works with the customer to quickly ascertain whether the presence of natural gas (via odor or some other characteristic) is likely coming from inside the customer's home or business, or from facilities located outside. If inside, the customer is instructed to immediately evacuate the building to a safe distance and await the arrival of emergency responders. If the leak is outside, instructions to the customer are based on the proximity and type of the leak to their(or others')home or business. Once the nature of the issue has been determined and the customer has been provided with precautionary instructions on how best to ensure their own safety and that of others until help arrives, the Company immediately dispatches the service personnel best situated to respond to the scene in the shortest time possible. At the scene,Avista's first priority is to make the situation safe for our customers, citizens, other emergency responders, and our employees. Restoration efforts commence once the safety of the site is secured, and necessary resources arrive at the scene. The Company's ability to respond quickly to a natural gas emergency is influenced by many factors, some of which include the urban or rural locale, the location of the nearest available respondent (especially in rural areas), the time of day, season of the year, weather conditions, traffic, and the presence of other simultaneous emergency events across the system. Natural gas emergencies differ from electric emergencies,however, in that the risk of a potential consequence to a natural gas leak can increase with the passage of time as leaking natural gas may accumulate at the site. For this reason, Avista's work practices and staffing levels aim to provide an average response time of 55 minutes or less. For this measure,the response time to a natural gas emergency is the elapsed time between the confirmation of the emergency with the customer (when the dispatch field order is given) and when the Avista service person arrives at the scene. 2024 Results — The average response time for the year is calculated by dividing the sum of all applicable natural gas emergency response times by the total number of qualifying emergency incidents. Avista received 2,190 qualifying natural gas emergency reports in its Idaho service area in 2024,which had a cumulative response time of 88,966 minutes. The resulting average for 2024 was nearly 41 minutes as noted in Table No. 9 below. " See Avista's natural gas tariff Schedule 185 for further specifics regarding this measure. Avista Utilities-2024 Idaho Service Quality Program Report 12 Table No. 9—Avista's Response Time for Natural Gas Emergencies in 2024 Response i for I Emergencies Quality��istformance Average time from customer call to the arrival of 55 Minutes or / Avista's field technicians in response to natural gas Less 41 Minutes V system emergencies IV. Electric System Reliability Providing safe and highly reliable electric service for our customers at a reasonable cost is fundamental to our business. Avista believes its current level of reliability is satisfactory and cost effective for our customers, and our long-term objective is to generally uphold our current levels of electric system reliability. Achieving this requires an ongoing effort to balance the many investments and other priority needs across our system for today and with implications that project far into the future. As already discussed, the Company monitors and tracks various aspects of the reliability performance of its system each year,relying on industry-standard measures(or indices). Two of the most commonly reported measures are briefly described below, and are discussed in greater detail in Appendix B. For its Idaho Service Quality Program, Avista reports its annual reliability results in the context of its historic five-year rolling average for these two measures: ✓ Number of Outages —known technically as the System Average Interruption Frequency Index or"SAIFI,"is the average number of sustained interruptions (outages)per customer for the year. ✓ Outage Duration—known technically as the System Average Interruption Duration Index or "SAIDI," is the average duration of sustained interruptions (outages) per customer for the year. Many factors influence the number and duration of outages on any electric system. Some of these include the average age of the system, its engineering design, construction standards, general condition, the extent of the system that is rural, terrain, utility equipment and staffing levels, and its day-to-day operation. The type and proximity of surrounding vegetation and local and regional weather patterns, including variability in weather, can have a pronounced impact on system reliability. Because the frequency and duration of the electric system outages that result from these factors can vary substantially from year to year,there is,naturally, a lot of variability in the annual measures of system reliability over time. For Avista, weather-related outages tend to have a predominant impact on the reliability of its system. This is because individual weather events often impact substantial portions of the system and can result in damage to many types of facilities. Weather caused outages, particularly from high winds, ice, and snow, can also require substantial effort and time to restore. These storm events can result in many customers being without service for an extended period of time.Because the impact of weather events on system reliability is common to all electric systems, the industry has adopted standardized adjustments that remove outages related to weather events of a certain magnitude from the calculation of results for outage frequency and duration. This threshold level of severity is referred to as a Major Event Day or ("MED"). The outages caused by any storm event that qualifies as MED are removed from the data used to calculate the utility's annual Avista Utilities-2024 Idaho Service Quality Program Report 13 reliability results. Although the year-to-year variability in outage duration is substantially reduced by the adjustment for major events,there can still be a substantial weather impact on the reliability results we report each year. This is the result of storms that, while not qualifying as major events, still result in substantial system outages. The important point of this discussion is that the reliability results for any single year, considered in isolation, do not provide a meaningful measure of the overall reliability of the utility's system, or an assessment of whether the performance that year was "acceptable" or "unacceptable". The reliability performance of our system (or any utility system) should be evaluated over the long term as the basis for evaluating whether our reliability is trending stably, improving, or degrading.12 Avista has agreed to report its annual reliability results to its customers in the context of its historic five-year rolling average. This approach helps our customers better understand how each year's reliability results fit into our long-term trend in overall system reliability. Measure 1: Number of Electric System Outages The Company will report its annual electric system f reliability measure for the number of non-major storm „ I�l •� power outages experienced per customer for the year 1 N (SA IFI).13 2024 Results — This measure, as noted earlier, represents how often, on average, an Avista electric customer experienced a sustained14 service outage during the year. This measure is calculated by adding the total number of customer outages recorded for the year, divided by the total number of customers served by the Company in that year. The result of 0.91 outage per customer for 2024 is below the average value for the previous five-year period (2019-2023) of .96, as well as for the current five-year period (2020-2024) of 0.95. For 2024, the Idaho-only SAIFI result was 1.07 outages per customer. Table No. 10—Number of Electric System Outages for the Average Avista Customer in 2024 ChangeCurrent ___0 Number of Electric System Outages 2024 5 6 in 5 Year Average�for the Average Avista Customer System Results ' Average� � Number of sustained interruptions in 0.91 0.95 -0.001 electric service for the average Avista per Customer Per Customer Per Customer customer for the year(SAIFI) 12 This is similar to the approach now used by the California Public Utilities Commission to evaluate electric utilities' system reliability. In: Approaches to Setting Electric Distribution Reliability Standards and Outcomes, pages 130 - 136. The Brattle Group,Ltd.2012. 13 See Avista's electric tariff Schedule 85 for further specifics regarding this measure. 14 Any service interruption that is greater than five minutes in duration. Avista Utilities-2024 Idaho Service Quality Program Report 14 Measure 2: Average Duration of Electric System Outages i f+ f The Company will report its annual electric system reliability measure for the total duration of non-major storm power outages experienced per customer for the year A° (SAIDI).15 2024 Results—This measure,as noted earlier,represents the average duration or length of outages for the year. Outage duration (SAIDI) is calculated by summing all of the customer outage time occurring in the year, divided by the total number of customers served by the utility in that year. On a system-wide basis, the 2024 outage duration was 131 minutes. As shown in Table No. 12 below, the current five-year average of 137 minutes (2020-2024) is 1.2 minutes less than the average for the prior five-year period (2019-2023). The Idaho-only outage duration was 165.98 minutes for 2024. Avista continues to focus on improving infrastructure to increase the reliability of electric service, in addition to responding to unplanned outages as quickly and safely as possible. Table No. 11 —Outage Duration for the Average Avista Customer in 2024 i 1 i I Avista Customer System Result 11 •ar • •i I I - 5 Year Average) Total duration of all electric service 131 137 -1.2 outages for the average Avista customer Minutes Minutes Minutes for the year(SAIDI) V. Customer Service Guarantees Avista's Idaho Service Quality Program includes seven types of service for which Avista provides "Customer Service Guarantees". Our service commitments under these Guarantees recognize the customer inconvenience that may r result when our delivered service does not meet our stated goal. In such cases, we will provide our customers with a r bill credit or payment in the amount of$50 in recognition of that inconvenience.All costs associated with the payment of these Guarantees are paid by Avista's shareholders, and are not paid by our customers, or included in the rates they pay for service. The Company met •• • of applicable • for 1 providing our •mers a Guarantee credit in just 25 out of 15 See Avista's electric tariff Schedule 85 for further specifics regarding this measure. Avista Utilities-2024 Idaho Service Quality Program Report 15 Guarantee 1: Keeping Electric and Natural Gas Service Appointments The Company will keep mutually agreed upon appointments for electric or natural gas service, scheduled in the time windows of either 8:00 a.m. — 12:00 p.m. or 12:00 p.m. —5:00 p.m.16 Avista provides its customers with appointments for certain types of electric and natural gas service requests. For electric service, the Company will schedule appointments for service drops and/or disconnects. For all other electric service work, the customer does not need to be present for the Company to perform the required work (i.e., check meter, meter test, voltage check, etc.). For natural gas service, the Company provides appointments for dealer-requested service, meter exchange and tests,meter unlock,no-heat inspections,reconnects,relighting of Avista repairs, and repeated pilot light outages on natural gas appliances. Avista offers multiple types of natural gas service appointments because the customer must be present for our employees to complete the work since they must enter the customer's home. If the requested date and/or time of the service request is unavailable, the Company will still do its best to work with the customer's request but will not commit to a specific time that an employee will arrive to work on the service request. Often times,this practice results in better customer satisfaction as the Company makes every effort to accommodate a customer's request on that day, rather than schedule the work on a future date. Finally, new service connections and credit reconnects are not available for appointments, as the work orders are completed on the same day as the request. 2024 Results — In 2024, the Company effectively maintained 99.57% of its 1,395 scheduled customer appointments for applicable electric and natural gas service in Idaho, issuing six Guarantee credits for the year. The primary factor contributing to missed appointments was due to the occurrence of emergency work orders being encountered during the day, which prevented the Company from adhering to its scheduled appointment times.Due to the risks and danger of electric and natural gas emergencies, the Company prioritizes emergency orders over all service work, scheduled or otherwise. While this prioritization is necessary for ensuring public safety, it occasionally results in the Company missing a few appointments,as evidenced by the 2024 results. Table No. 12—Avista Service Appointment Results for 2024 Customer Service Guarantee Successful Missed $ Paid Keeping electric and natural gas service 1,389 6 $300 appointments scheduled with our customers Guarantee 2: Prompt Restoration of Electric System Outage When customers experience an electric interruption, the Company will restore the service within 24 hours of notification from the customer." The Company strives to restore power to its customers as quickly as possible, while maintaining the safety of our employees, customers, and the public as our top priority. Electric system outages are intricate and can happen at any time, day or night,throughout the year. In many years, even in 16 See Avista's tariff Schedules 85 (electric) 185(natural gas)for further specifics regarding this Guarantee. See Avista's electric tariff Schedule 85 for further specifics regarding this Guarantee. Avista Utilities-2024 Idaho Service Quality Program Report 16 cases where Avista does not experience any storms that qualify as major events, it may still be impossible for the Company to restore service to all customers within 24 hours. 2024 Results — In 2024, Avista's Idaho customers encountered a total of 7,781 outage events. Remarkably, all of these outages had power restored within 24 hours,resulting in a success rate of 100%. Avista takes pride in the ongoing effectiveness of its efforts, which have consistently minimized the number of missed outage events. The Company is pleased to maintain its high success rate in swiftly restoring power to its customers within the 24-hour timeframe, ensuring minimal disruption and enhancing overall customer satisfaction. Table No. 13—Avista's Outage Restoration Results for 2024 Customer Service Guarantee Successful Missed $Paid Restore service within 24 hours of a customer 7 781 0 $0 reporting an outage(excluding major storm events) Guarantee 3: Promptly Turning on Electric or Natural Gas Service Upon Request The Company will turn on power or connect natural gas service the same day the customer or applicant requests service.18 When customers request electric or natural gas service from Avista, they have a reasonable expectation that their service will be turned on as quickly as possible, or promptly on a future date they request. The Company strives to meet these customer expectations by all reasonable means. Typically, the electric or natural gas meter is not shut off between customers, so when a customer moves to a new location the service is already on when they open an account for service at the new address. In situations where the service is not already on at a customer location,the Company must send an employee to reconnect the meter. 2024 Results —Avista met its benchmark to turn on customers' service the same day the service was requested in 99.93% of cases, missing only three of the 4,387 requests received. Table No. 14—Avista Turning on Service the Same Day for 2024 Customer Service Guarantee Successful Missed S Pa Turn on power within a business day of receiving the request 4,384 3 $150 Guarantee 4: Promptly Providing Cost Estimates to Customers for New Service The Company will provide a cost estimate to the customer or applicant for new electric or natural gas supply within 10 business days upon receipt of all the necessary information from the customer/applicant. 18 See Avista's tariff Schedules 85 (electric) 185(natural gas)for further specifics regarding this Guarantee. Avista Utilities-2024 Idaho Service Quality Program Report 17 When constructing a new home, the process for providing new electric or natural gas supply can be complex, and may involve a customer, contractor,electrician,or dealer depending on the nature of the new service. A request for new electric or natural gas service is typically routed through our customer contact center and is assigned to one of our employee Customer Project Coordinators (CPCs) in our natural gas or electric construction areas. Our CPCs are responsible for discussing the request with the customer (Applicant), meeting with the customer at the location, designing the service, and then providing the customer with a cost estimate for the required construction. The Company's goal for completing the cost estimate, for which it offers a Customer Service Guarantee, is 10 business days. 2024 Results—In 2024,the Company received 518 requests for new electric or natural gas service. Impressively,Avista successfully delivered cost estimates for each request within 10 business days of receipt, achieving a success rate of 100%. This accomplishment marks the sixth consecutive year, since the Company's inception of reporting these Guarantees in 2019, in which Avista has maintained a flawless success rate of 100%. Table No. 15—Avista Providing Customers a Cost Estimate for New Service in 2024 ustomer Service Guarantee MML Successful Missed $Paid Provide a cost estimate for new electric or natural gas 518 0 $0 service within 10 business days of receiving the request Guarantee 5: Promptly Responding to Customers' Bill Inquiries The Company will respond to most billing inquiries at the time of the initial contact, and for those inquiries that require further investigation, the Company will investigate and respond to the customer within 10 business days. For a customer, it can be difficult to understand why the amount of their energy bill can vary, sometimes substantially, from month to month. Some of these factors include variability in weather, changes in rates, the result of an estimated bill amount in certain circumstances, and variation in the number of billing days included in the billing period. When customers have questions about their bill,Avista's CSRs strive to address and resolve all inquiries during the initial customer contact. Some of the tools Avista employees have to address such bill inquiries (which are generally related to circumstances when customers feel their bill is too high), include: ✓ Review the meter read and usage history to see if the bill is in line with the prior months or years. ✓ Review the number of billing days for the bill in question. ✓ Utilize the Company's bill analyzer tool,which is also available to customers on Avista's website, for a comparison of weather, average usage, and rates. ✓ Discuss with the customer any life changes, new appliances, or maintenance needs and how those can impact their utility bill. ✓ Offer tips on ways to save energy. ✓ Direct the customer to Avista's website for additional energy savings advice. ✓ Offer to mail Energy Use and Savings Guides or Energy Savings kits. Avista Utilities-2024 Idaho Service Quality Program Report 18 If the CSR is unable to address the billing inquiry during the initial contact or the customer is not satisfied with the information provided, the Company will open a case to further investigate the customer's inquiry.After a case has been created,Avista will verify the meter read or obtain a new meter read to double-check the accuracy of the metered use, and, if a billing error is found to have occurred, the CSR will initiate sending a corrected bill. After determining the accuracy of the bill, the CSR will discuss the inquiry again with the customer, along with the results of the verification of the meter read or new meter read. Typically, this process resolves the customer's issue. In situations where the customer is not satisfied and/or requests a meter test to ensure their meter is reading accurately, a separate procedure is triggered, which is covered by Customer Service Guarantee number six below, "Promptly Responding to Customers' Meter Problems." 2024 Results—Of the billing inquires that were not resolved upon the initial customer contact,the Company successfully investigated and responded within 10 business days to all of the 394 follow- up inquiries received in 2024. Table No. 16—Avista Responding to Customer's Bill Inquiries in 2024 Customer Service Guarantee cessful Missed $Paid Investigate and respond to a billing inquiry within 10 394 0 $0 business days if unable to resolve via first contact Guarantee 6: Promptly Responding to Customers' Meter Problems The Company will investigate customer-reported problems with a meter, or conduct a meter test, and report the results to the customer within 20 business days. Commission rules, concurrently with Avista's tariff Schedule 170 for natural gas service, govern the utility's requirement for meter testing. Avista has, of course, naturally complied with these requirements prior to the implementation of its Customer Service Guarantees program. Under the Guarantees now in place, however, the Company now provides a $50 credit if it fails to meet this requirement. 2024 Results — In 2024, 197 of Avista's Idaho customers reported a meter problem or requested the Company conduct a meter test.Avista successfully tested and reported the results to all of these customers within 20 business days, for a success rate of 100%. Table No. 17—Avista Resolving Meter Problems in 2024 kLKustomer Service Guarantee Successful Missed $ Paid Investigate a reported meter problem or conduct a meter 197 0 $0 test and report the results within 20 business days Avista Utilities-2024 Idaho Service Quality Program Report 19 Guarantee 7: Providing Customers Advance Notice of Scheduled Electric Interruptions The Company will provide notification to the customer, through means normally used by the Company, at least 24 hours in advance of disconnecting service for scheduled interruptions.19 Under Avista's Customer Service Guarantees program, the Company provides a $50 credit for each customer impacted if the Company fails to provide notice of a scheduled interruption at least 24 hours in advance. Complying with this notification requirement has always been a complex process because there are so many areas within the Company involved in the effort. Some of these include natural gas construction, electric operations, customer project coordinators, asset maintenance program managers, distribution dispatch, service dispatch, and the customer contact center. This complexity requires the Company to maintain multiple checkpoints within its business processes to ensure all customers affected by a scheduled interruption are properly notified, in advance, of an upcoming planned outage. 2024 Results — In 2024, a total of 22,512 Idaho customers were affected by scheduled service interruptions. Avista successfully notified 22,496 customers, achieving an impressive success rate of 99.93%. However, for the 16 customers that did not receive the required advance notification, the Company provided a $50 credit, for a total of$800. While these figures reflect an increase in the planned outages reported in 2022 and 2023,they are also representative of an increased number of successful notifications to customers affected by these scheduled interruptions. This increased success rate can be attributed to fewer internal errors and improvements implemented to address gaps in Company processes. Avista acknowledges the significance of this benchmark and remains committed to refining and enhancing its prior notification processes to better serve its customers. Table No. 18—Avista's Customers Notified in Advance of an Electric Service Interruption in 2024 Customer Service Guarantee Successful Missed S Paid Notify customers at least 24 hours in advance of a 22 496 16 $800 planned power outage lasting longer than 5 minutes 19 See Avista's electric tariff Schedule 85 for further specifics regarding this Guarantee. Avista Utilities-2024 Idaho Service Quality Program Report 20 Appendix A—Service Quality Program Report Card ID 2024 Service Quality Program Results Customer Service Measures Benchmark 2024 Performance Achieved Percent of customers satisfied with our Contact Center services, At least 90% 96.0% based on survey results Percent of customers satisfied with field services,based on survey At least 90% 98.0% ✓ results Percent of calls answered live within 60 seconds by our Contact At least 80% 87.3% ✓ Center Average time from customer call to arrival of field technicians in No more than 65 52 Mins response to electric system emergencies,peryear minutes Average time from customer call to arrival of field technicians in No more than 55 41 Mins response to natural gas system emergencies,peryear minutes Electric System Reliability 5-Year Average 2024 Result Change in (2020-2024) 5-Year Average Frequency of non-major-storm power interruptions,per year,per 0.95 0.91 -0.010 customer(SAIFI) Length of power outages peryear,per customer(SAIDI) 137 131 -1.2 Customer Service Guarantees Successful Missed $$Paid Electric&Natural Gas service appointments 1,389 6 $300 Electric outage restoration within 24 hours of notification from 7,781 0 $0 Customer,excluding major events Switch on power or connect gas services the same day of request 4,384 3 $150 Provide cost estimate for new electric or natural gas supply within 10 518 0 $0 business days Investigate and respond to billing inquiries with 10 business days 394 0 $0 Investigate customer-reported problems with a meter,or conduct a 197 0 $0 meter test,and report results within 20 business days Provide notification at least 24 hours in advance of disconnecting 22,496 16 $800 service for scheduled electric interruptions Totatsj 37,159 25 $1,250 2024 Idaho Performance Highlights Avista is pleased to report the Company again exceeded all of its Customer Service Measures for the 2024 Program year.The Company also celebrates a 100%success rate in restoring service within 24 hours of notification from customers after they have reported an electric outage,totaling 7,781 customers in 2024.Finally,Avista successfully met 99.93%of its applicable Customer Service Guarantees in 2024, providing customers a Guarantee credit in 25 out of 37,184 cases.The overall success rate of these Guarantees shows Avista's continued commitment to putting those we serve at the center of everythingwe do.Avista is committed to pursuingfurther improvement in each of these areas as we continue our mission of enablingvibrant communities through energy by providing safe,responsible,affordable service now and into the future. Avista Utilities-2024 Idaho Service Quality Program Report 21 Appendix B -Definitions and Index Calculations System Average Interruption Frequency Index (SAIFI): The average number of sustained interruptions per customer, per year • = The number of customers which had sustained interruptions Total number of customers served • _ JN; NT System Average Interruption Duration Index (SAIDI): The average sustained outage time per customer,per year • = Outage duration multiplied by the customers effected, for all sustained interruptions Total number of customers served _ r,.N, NT Quantities: i= An interruption event; rl = Restoration time for each interruption event; T= Total; IDE = Number of interrupting device events; Ni= Number of interrupted customers for each interruption event during the reporting period; NT= Total number of customers served for the area being indexed; Maior Event Day (MEM A day in which the daily system SAIDI exceeds a threshold value, TMED. For the purposes of calculating daily system SAIDI, any interruption that spans multiple calendar days is accrued to the day on which the interruption began. Statistically, days having a daily system SAIDI greater than TMED are days on which the energy delivery system experienced stresses beyond that normally expected (such as severe weather). Activities that occur on major event days should be separately analyzed and reported. The purpose of MED is to allow major events to be studied separately from daily operation, and in the process, to better reveal trends in daily operation that would be hidden by the large statistical effect of major events. TMED is calculated(taken from the IEEE 1366-2003 Standard) The major event day identification threshold value,TMED,is calculated at the end of each reporting period(typically one year) for use during the next reporting period as follows: a) Collect values of daily SAIDI for five sequential years ending on the last day of the last complete reporting period. If fewer than five years of historical data are available, use all available historical data until five years of historical data are available. b) Only those days that have a SAIDI/Day value will be used to calculate the TMED (do not include days that did not have any interruptions). c) Take the natural logarithm(In) of each daily SAIDI value in the data set. Avista Utilities-2024 Idaho Service Quality Program Report 22 d)Find a(Alpha),the average of the logarithms(also known as the log-average)of the data set. e) Find b (Beta), the standard deviation of the logarithms (also known as the log-standard deviation) of the data set. f) Compute the major event day threshold, TMED, using equation(25). TMED= e(a+2.5 b) g) Any day with daily SAIDI greater than the threshold value TMED that occurs during the subsequent reporting period is classified as a major event day. Activities that occur on days classified as major event days should be separately analyzed and reported. When an event has reached the threshold to constitute a MED described in subpart (f) above, all outage incidents associated with the MED will be flagged in the Company's Outage Management Tool. As the Company further assesses damage in the field while making repairs, new subsequent outage incidents that were a result of the MED may be created as more accurate information is made available. The subsequent incidents will be flagged and included as part of the original outage event and MED. Avista Utilities-2024 Idaho Service Quality Program Report 23