200403052nd Request of Staff to Avista.pdf

SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BAR NO. 1895
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
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I'HSSION
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR THE
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR ELECTRIC AND
NATURAL GAS SERVICE TO ELECTRIC
AND NATURAL GAS CUSTOMERS IN THE
STATE OF IDAHO.
CASE NOS. AVU-04-
A VU-04-
SECOND PRODUCTION
REQUEST OF THE
COMMISSION STAFF
TO A VISTA CORPORATION
The Staff of the Idaho Public Utilities Commission, by and through its attorney of record
Scott Woodbury, Deputy Attorney General, requests that Avista Corporation (A vista; Company)
provide the following documents and infonnation on or before MONDAY, MARCH 15 2004.
IDAP A 31.01.01.225 and .229. This Second Production Request fonnalizes prior Audit Requests
where the requested response date has passed and written answers have not been received.
. The Company is reminded that responses pursuant to Commission Rules of Procedure must
include the name and phone number of the person preparing the document, and the name, location
and phone number of the record holder. Reference IDAP A 31.01.01.228.
This Production Request is to be considered as continuing, and A vista is requested to provide
by way of supplementary responses, additional documents that it or any person acting on its behalf
may later obtain that will augment the documents produced.
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO A VISTA MARCH 4, 2004
For each item, please indicate the name of the person(s) preparing the answers, along with the
job title of such person(s) and the witness who can sponsor the answer at hearing. For all responses
to the following requests, please provide all supporting workpapers that provide detail or are the
source ofinfonnation used in calculations including electronic versions on diskettes (3.5 in.) or CDs
with all underlying fonnulas intact in Excel 2000 compatible language.
For instances where a verbal response to any of the following requests has previously been
provided, please provide a written response to these requests. When an Audit Request has asked for
an accounting report, please include the vendor code and/or vendor description by each dollar amount
in the report. If only the vendor code and not the vendor description is provided within these reports
please provide a listing that shows all vendor codes and definitions. Production Request Nos. 80
through 113 were originally Audit Requests made in 2003 prior to the Company s rate case filing.
Please also provide infonnation related to the 2003 fiscal year in your responses to these requests as
applicable.
Request No. 80: Please provide a copy of the summaries of all adjusting entries for the
December 31 , 2001 and 2002 general ledger and the related explanation for each entry. (Fonnerly Audit
Request No., dated March 14 2003). Subsequent discussion clarified this request to include
adjustments such as depreciation true-ups and other periodic closing or true-up type of entries.
Request No. 81: Please provide a copy of the most recent accounting and cost allocation
manuals. In your response, please include a description of how materials, wages, equipment (such as
vehicle usage) are expensed and capitalized. (Fonnerly Audit Request No., dated March 14 2003).
Request No. 82: To the extent not provided in response to the three previous Audit Requests, 1
please identify any costs shared with other companies and the manner in which these costs are calculated
for 2001 and 2002. (Fonnerly Audit Request No. 17, dated March 14 2003).
Audit Request Nos. 14-, Response from Avista received April 23, 2003 with supplements on
July 14 2003.
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO AVISTA MARCH 4, 2004
Request No. 83: To the extent not provided in response to the previous Audit Request (Audit
Request No. 18), please identify how any amounts from discontinued operations due to either A vista Gas
or Electric Operations were handled. For example, were those amounts written off and if so, when, for
what dollar amount, and in which accounts. (Fonnerly Audit Request No. 19, dated March 14, 2003).
Request No. 84: Please provide a schedule oflobbying and/or political action committee
expenses associated with or allocated to Avista Gas and Electric Operations for 2002. Please describe the
nature of the expenses, the payee, amounts and accounts posted. (Fonnerly Audit Request No. 59, dated
March 14 2003).
Request No. 85: To the extent not already provided, please identify any extraordinary expenses
revenues, gains or losses for the years 2001 , 2002 and 2003 to date that were directly assigned or
allocated to Avista Gas and/or Electric Operations. Please describe the circumstances, identify dates of
relevant events, amounts and accounts posted including how and where items were amortized. (Fonnerly
Audit Request No. 67, dated March 14, 2003).
Request No. 86: Please provide access to a copy of all studies used to detennine executive
compensation and explanations regarding how the Company applied them in the years 2000, 2001 , 2002
and 2003 to date. (Fonnerly Audit Request No. 76, dated March 14 2003).
Request No. 87A: Avista Corp. is the primary contributor to the Avista Foundation
(Foundation) that was fonned in 2002. In its 2002 Application to the IRS for exemption (Fonn 1023)
over $2 million in gifts, grants and contributions were reported as received by the Foundation. Please
identify where the contributions from Avista Corp. to the Foundation in 2002 were recorded and
provide the related accounting entries. Please include within your response how these contributions
were allocated to the A vista Companies including A vista Gas Operations (Idaho) and A vista Electric
Operations (Idaho). (Fonnerly Audit Request No. 80A, dated on-site September 9, 2003).
Request No. 87B: Please identify how employee time and other non-cash contributions and
support of the Foundation were recorded and how they were allocated to the Avista Companies
including Avista Gas Operations (Idaho) and Avista Electric Operations (Idaho). (Fonnerly Audit
Request No. 80B, dated on-site September 9 2003).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO A VISTA MARCH 4, 2004
Request No. 88: Please provide a copy of the travel policy governing each group of
employees travel. Please include within this infonnation a description of the types of expenses that
are reimbursable when presented by the employee for payment and those types of expenses that are
not reimbursable. (Fonnerly Audit Request No. 81 , dated on-site September 9, 2003).
Request No. 89: According to the 2002 Shareholder s Report (page 13), the Company united
with area developers to renovate an old downtown hotel into a 35 000 square foot office complex.
Please identify where the costs associated with this effort were recorded in 2002 and provide the
related accounting entries. Please include within your response how these costs were allocated to the
Avista Companies including Avista Gas Operations (Idaho) and Avista Electric Operations (Idaho).
If Idaho was allocated or assigned costs, please state the benefit to the utility operations. (Fonnerly
Audit Request No. 82, dated on-site September 9 2003).
Request No. 90: According to page 13 of the 2002 Shareholder s Report, the Company lent
an A vista executive to the City of Spokane in 2002 to support the mayor and city council in their
economic development activities. Please identify how that executive s time for these activities were
recorded to the Company s operations in 2002, how those costs were assigned to Avista Gas
Operations (Idaho) and A vista Electric Operations (Idaho) and the benefit to the utility operations.
(Fonnerly Audit Request No. 83 , dated on-site September 9 2003).
Request No. 91: According to page 17 of the 2002 Shareholder s Report, the Company
conducted a benchmark study to "identify further strategic cost reductions." Please provide a copy of
that study and a description of when various cost reduction activities were (or are going to be)
implemented. Please also provide a description of the cost savings achieved by account, year and
amount realized in Idaho Gas Operations and Idaho Electric Operations. (Fonnerly Audit Request No.
, dated on-site September 9 2003).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO AVISTA MARCH 4, 2004
Request No. 92: In the Board of Directors ' meeting minutes, there is reference to the
potential sale and/or financing of the LM 6000 turbines. Please provide the following infonnation:
a. Company has responded to this portion offormer Audit Request No. 85.
b. What use were the turbines purchased for and how has that use changed over time.
c. What was the status of the turbines during 2002 - were they used in production, considered
impaired, sold or some other status.
d. What is the current status of the turbines?
(Fonnerly Audit Request No. 85A-85D, dated on-site September 9, 2003).
Request No. 93A: Please provide a detail of the items posted to FERC account 550 - Rent
for the year 2001 in Electric Operations. Please identify the amount posted, dates posted, accounting
document number and reason for the increase in Idaho Operations Rent from approximately $1.
million in 2000 to $4.5 million 2001. (Fonnerly Audit Request No. 86A, dated on-site September 10
2003).
Request No. 93B: Please provide a detail of the items posted to FERC account 565-
Transmission of Electricity by Other for the year 2002. Please identify the amounts posted, dates
posted, accounting document number and reason for the decrease in Idaho Operations from
approximately $3.2 million in 2001 to $3 million n 2002. (Fonnerly Audit Request No. 86B, dated on-
site September 10, 2003).
Request No. 93C: Please describe the underlying reasons with documentation for the
increase in Salary Expense (account 920) assigned/allocated to Idaho Electric Operations in 2002. In
2001 approximately $3.7 million was assigned/allocated to Idaho Electric Operations and in 2002
approximately $4.8 million was assigned/allocated to Idaho Electric Operations. (Fonnerly Audit
Request No. 86C, dated on-site September 10 2003).
Request No. 94: The 12/31/02 SEC 10-, in Note 6 to the consolidated financial statements
notes that in 1997 Avista Receivables Corp. (ARC) was fonned as a subsidiary ofthe Company for
the purpose of acquiring or purchasing interests in certain accounts receivable, both billed and
unbilled of the Company. The note then identifies that ARC can sell those receivables without
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO AVISTA MARCH 4, 2004
recourse and ARC is obligated to pay fees that approximate the purchasers' cost of issuing
commercial paper and that $65 million of receivables were sold in 2002.
Please identify the benefit of ARC to the utility and why fonned.
Please identify the types of receivables sold - including percentage of receivables sold
that are related to the utility.c. Please identify the fees ARC paid in 2002 and which expense accounts these were
recorded to and how much, if any, were assigned/allocated to the Idaho Gas Operations and the Idaho
Electric Operations.
(Fonnerly Audit Request No. 87 A-87C, dated on-site September 10, 2003).
Request No. 95A: Please provide a report listing the amounts posted to Electric Operations
in 2002 in account 923 - outside services employed. Please include amount posted, document
number and date. (Fonnerly Audit Request No. 88A, dated on-site September 10, 2003).
Request No. 95B: Please provide a report listing the amounts posted to Gas Operations in
2002 in account 1874 - Mains & Services Expenses. Please include amount posted, document
number and date. Please also describe underlying reasons for the increase in these expenses.
Amounts allocated/assigned to Idaho Operations in 2000 were approximately $350 000 while in 2001
they were approximately $440 000 (30% increase) and in 2002 they were approximately $520 000.
(Fonnerly Audit Request No. 88B, dated on-site September 10, 2003).
Request No. 95C: Please provide a report listing the amounts posted to Gas Operations in
2002 in account 1878 - Meter & House Regulator Expenses. Please include amount posted
document number and date. Please also describe the underlying reasons for the significant percent
increase in these expenses (system 2001 expenses were approximately $540 0000 and the 2002
expenses were $950 000. (Fonnerly Audit Request No. 88C, dated on-site September 10 2003).
Request No. 96A: Please provide a report listing the amounts posted to account 1880-
Other Expenses for Gas Operations in 2001 and 2002. Please include amount posted, document
number and date. (Fonnerly Audit Request No. 89, dated on-site September 10 , 2003).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO A VISTA MARCH 4, 2004
Request No. 96B: Please provide a report listing the amounts posted to account 1903-
Customer Records & Collection Expenses for Gas Operations in 2000. Please include amount
posted, document number and date. Please also describe the events that resulted in an approximately
15% ($500 000) increase in those expenses over the 1999 amount. (Fonnerly Audit Request No. 89
dated on-site September 10, 2003).
Request No. 96C: Please provide a report listing the amounts posted to account 1921 -
Office Supplies & Expenses for Gas Operations in 2002. Please include amount posted, document
number and date. Please also describe the events that resulted in 2002 System expenses being
approximately 30% greater than those incurred in 2001. (Fonnerly Audit Request No. 89, dated on-site
September 10, 2003).
Request No. 97A: Please describe the underlying reasons with documentation for the
increase in Salary Expense (account 1920) assigned/allocated to Idaho Gas Operations. In 2001
approximately $780 000 was allocated/assigned and in 2002 that amount increased to approximately
$1 million (Audit Request No. 86C asked for similar infonnation regarding Electric Operations).
(Fonnerly Audit Request No. 90A, dated on-site September 10, 2003).
Request No. 97B: Please provide a report listing the amounts posted to Gas Operations in
2002 to account 1923 - outside services employed. Please include amount posted, document number
and date. (Audit Request No. 88A asked for similar infonnation regarding Electric Operations).
(Fonnerly Audit Request No. 90B, dated on-site September 10, 2003).
Request No. 97C: Please describe any 2002 expenses associated with future/present
software acquisitions planned. For example, if expenses had been incurred in 2002 to evaluate
software needs and search for new systems, please identify amounts posted by account, systems
sought and installed (including year of installation) and amount allocated/assigned to Idaho Electric
Operations and Idaho Gas. (Fonnerly Audit Request No. 90C, dated on-site September 10 2003).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO AVISTA MARCH 4, 2004
Request No. 98: Please provide a copy of the policy regarding employee expense accounts.
Please include a description of the employee groups with expense accounts, the dollar limitation on
reimbursable expenses (if any), the type of expenses that are reimbursable, the level (supervisory) of
review prior to payment and how those expense reports are filed. (Fonnerly Audit Request No. 91
dated on-site September 10, 2003).
Request No. 99: Does the Company provide funds to initiate or otherwise participate in
economic development programs? If so, please identify the programs, the costs by year and amount
of costs assigned/allocated to Idaho Gas Operations and Idaho Electric Operations for each program.
(Fonnerly Audit Request No. 92, dated on-site September 10, 2003).
Request No. 100: In response to Audit Request No. 55, which requested a schedule of
amounts paid for injuries and damages, one amount paid was greater than $500 000. Please provide
the detail paperwork outlining the claim, analysis perfonned of the amount and reason for claim, and
the document paying the claim. (Fonnerly Audit Request No. 93, dated on-site September 11 , 2003).
Request No. 101A: Plant in Service, Gas Operations Account 1376 (Mains) was
approximately $118 million (Commission Basis Average of 12 months) in 1999, $126 million in
2000, $128 million (in 2001) and $137 million (in 2002). Please describe the underlying reasons for
the increases. Please include in your response a description of the projects that caused the increases.
(Fonnerly Audit Request No. 95A, dated on-site September 11 , 2003).
Request No. 101B: Please provide accounting reports which include the dollar amount
posted, date posted, account posted and related document numbers for Gas Operations Account 1376
for account activity in 2000 and 2002. (Fonnerly Audit Request No. 95B, dated on-site September
2003).
Request No. 101C: The Commission Basis Average of 12 months for Gas Operations
Account 1376 (Mains) in 2001 decreased approximately $1 million from 2000 while at the system
level the amount in the account increased. Please describe the underlying reasons for this. (Fonnerly
Audit Request No. 95C, dated on-site September 11 2003).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO A VISTA MARCH 4, 2004
Request No. 102: The May 10, 2001 minutes for the annual meeting of shareholders states
the Company was refocusing its strategies in order to ensure its financial well being." Is there a
fonnal document, or study, assessment, etc. that spells out the strategies? An example might be a
mission statement with business unit goals and objectives. If there is such a document, is it only at
the Avista Corp. level? Does Avista Utilities have such a document? Please provide documentation
of any such strategies to the IPUC Audit Staff. (Fonnerly Audit Request No. 96, dated on-site
September 11 2003).
Request No. 103: The May 11 2001 and August 9 and 10 2001 Board of Directors ' meeting
minutes reference an evaluation of various A vista business units, with advisory services being
provided by Goldman Sachs. The August minutes mention a presentation by personnel of Goldman
Sachs & Co., an assessment of strategic alternatives and overviews of the various business units.
Please provide Staff with a copy of the assessment of strategic alternatives as it relates to A vista
Corp. or Avista Utilities. (Fonnerly Audit Request No. 97, dated on-site September 11 , 2003).
Request No. 104: At the September 18 2001 Board of Directors' meeting, the Directors
were given "written updates on regulatory activity, Avista Energy, cost-savings initiatives and the VP
Finance search." What were the cost-savings initiatives? Which ones were implemented? Are any
that were implemented still in place? (Fonnerly Audit Request No. 99 , dated on-site September 11
2003).
Request No. 105: At the November 9 2001 Board of Directors' meeting, it was decided to
tenninate the Pentzer Corporation Affiliates Savings Plan. Did this tennination have any effect on
the regulated utility? (Fonnerly Audit Request No.1 00, dated on-site September 11 , 2003).
Request No. 106: What is the purpose of the change of control agreements? Please describe
a change of control agreement, what amount is booked and when? Which positions at Avista
Corporation apply? Which positions at Avista Utilities? Please provide a copy ofthe change of
control agreement. (Fonnerly Audit Request No. 101 , dated on-site September 11 2003).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO AVISTA MARCH 4, 2004
Request No. 107: Please provide a schedule oflegal expenses allocated and assigned to
Idaho Gas Operations in 2002 and Idaho Electric Operations in 2002. Please include a total
expenses by legal project such as the following:
2002 Idaho Gas 2002 Idaho Electric
FERC Investigation
CFTC Subpoena
Washington Consumer Class
Action Lawsuit. . . and so forth
$YY YYY
AAA
$XXX XXX
BBB
Total Legal Expenses Allocated and
Assigned to Idaho
(Fonnerly Audit Request No. 103 , dated on-site September 12, 2003).
Request No. 108A: Please describe the various fixed costs associated with use of the
Company-owned aircraft such as pilot salaries and please provide the dollar amount posted in 2002 at
the system level, the account( s) posted, how those costs were allocated or assigned to Idaho Gas
Operations and/or Idaho Electric Operations and the amount allocated or assigned to Idaho Gas
Operations and/or Idaho Electric Operations. (Fonnerly Audit Request No.1 04A, dated on-site
September 12, 2003).
Request No. 108B: Please describe the variable costs associated with use of the Company-
owned aircraft such as fuel and please provide the dollar amount posted in 2002 at the system level
the account(s) posted, how these costs were allocated to Idaho Gas Operations and/or Idaho Electric
Operations and the amount allocated or assigned to Idaho Gas Operations and/or Idaho Electric
Operations. (Fonnerly Audit Request No. 104B , dated on-site September 12 2003).
Request No. 109: Please provide a narrative description of Tom Matthews' compensation
package and severance package. Include the employment start and end dates, and how his time was
allocated among the various subsidiary corporations and business units, including A vista Utilities.
Please identify any amounts charged in 2002 and to which accounts those amounts were charged.
What amounts during 2002 were allocated or directly charged to Idaho Gas and Electric operations.
(Fonnerly Audit Request No. 106, dated on-site September 12, 2003).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO A VISTA MARCH 4, 2004
Request No. 110: Please provide a historical summary for the years 1999-2003 for Avista
Corporation for all insurance policies including but not limited to: Property Liability, Excess
Liability, Workers Compensation, Directors and Officers, Aircraft, Excess Workers Compensation
Commercial Crime Coverage, and Fiduciary and Employee Benefit Liability Insurance. Please
include the premium amount, deductible amount, and show the percentage allocated to subsidiary
corporations of Avista Corporation. Also, please include the percentage that is allocated or directly
assigned to Avista Utilities. (Fonnerly Audit Request No. 107, dated on-site September 12, 2003).
Request No. 111: Please provide a copy of the 2002 overhead allocation factors. Please
include the amounts or percentages for: payroll loading, paid time off loading, payroll taxes loading,
transportation overheads, stores and purchasing loading, small tools loading and construction
overheads. (Fonnerly Audit Request No. 109, dated on-site September 12, 2003).
Request No. 112: Please identify expenses associated with bond issuances, analyst fees
rating agencies, Board of Directors ' fees , and shareholder expenses and how they are allocated to
Avista Corp. and its subsidiaries, including the utility and Idaho Gas and Electric Operations.
(Fonnerly Audit Request No. 110, dated on-site October 27 2003).
Request No. 113: Please provide a copy of the capital leases identified in response to Audit
Request No. 61. (Fonnerly Audit Request No. 116, dated on-site October 27, 2003).
Request No. 114: Please calculate and provide average base salary for all Avista Utilities
employees. The calculation is as follows: Total Base Salaries for 2003 for all Avista Utilities
employees divided by total employees. No benefits, taxes or incentive pay should be included in this
calculation. (Fonnerly Audit Request No. 117, dated February 10, 2004).
Request No. 115: Please update Company response to Audit Request No.4 by providing a
copy of the annual report and proxy statement to shareholders for 2003 when it becomes available.
(Fonnerly Audit Request No. 118, dated February 10, 2004).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO A VISTA MARCH 4, 2004
Request No. 116: Please update Company response to Audit Request No.6 by providing a
copy of the detailed general ledger for the year ended December 31 , 2003. Please also provide an
electronic version of this and the 2001 and 2002 general ledgers on diskettes (3.5 in.) or via e-mail in
Excel 2000 compatible language if possible. (Fonnerly Audit Request No. 119, dated February 10
2004).
Request No. 117: Based upon previous Company responses, it is Staff s understanding that
A vista does not have any desk procedures, accounting and cost allocation manuals to train new or
existing employees in their duties and infonn them of Company policies and procedures. Staff has an
eleven-page document (attached are hand-numbered pages 6-10 and 26-31) some of which is dated
June 1996 describing utility codes, 1996 overhead percentages and 1997 budget overhead
percentages. Please verify that infonnation previously provided is still current and also provide
materials describing the following:
The process by which salary and benefits are recorded and allocated including the basis of
those allocations such as timecards or other allocation documents. Please include within this response the
original account numbers that are charged and the journal entries splitting those charges to individual
capital and expense accounts.b. The process by which capital charges are recorded. Please include within this
response the method by which construction projects are billed and ultimately recorded as plant in
servIce.
The current dollar threshold for expensing items. Staff currently has materials that
indicate items costing less than $500 are expensed.
The process by which revenues are billed. Please include within this response how
changes in rates are implemented.
(Fonnerly Audit Request No. 121 , dated February 10, 2004).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO A VISTA MARCH 4, 2004
Request No. 118: Please update Company response to Audit Request No. 11 by providing an
analysis of the actual cost of capital at December 31 , 2003 that includes embedded and weighted cost
of debt and equities. Please also provide an electronic version with fonnulas intact of this and the
2002 cost of capital response (prepared April 25, 2003) on diskettes (3.5 in.) or via e-mail in Excel
2000 compatible language if possible. Please provide schedules showing at least the following:
a. Alliong-tenn and short-tenn debt amounts outstanding as of December 31 2003 with
details on the instrument type, face amount, stated interest rates, premiums, discounts, unamortized
issuance expense and effective cost rate for 2003.
All preferred securities outstanding as of December 31 , 2003 with details on dollars
outstanding and embedded cost calculation.
Common equity as of December 31, 2003 with details on dollars outstanding and
embedded cost calculation.
(Fonnerly Audit Request No. 122, dated February 10, 2004).
Request No. 119: Please update Company response to Audit Request No. 23 by updating the
list prepared April 23 , 2003 that identified reports and/or letters prepared by Internal Audit staff in
2000 through 2003 documenting areas reviewed by them.a. Please list reports and/or letters prepared after April 23, 2003 and through 2004 to
date.
Please provide the list now but have these reports available for on-site review.
(Fonnerly Audit Request No. 123, dated February 10, 2004).
Request No. 120: Please update Company response to Audit Request No. 22 by updating the
original response to include any audited financial statements, audit reports and letters between
Avista s auditors and the audit committee and management in 2003 and 2004 not previously
provided. (Fonnerly Audit Request No. 124, dated February 10, 2004).
Request No. 121: Please provide a schedule of Plant in Service for the year ended December
2003 that is similar to FERC Fonns and State Supplements that shows additions, retirements
(including associated reductions to accumulated depreciation), transfers and adjustments. Please
show the additions and reductions (retirements, transfers, etc.) at the subaccount level separated by
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO A VISTA MARCH 4, 2004
production, transmission and distribution. Please show the amounts for Total Company and the
Idaho jurisdiction separated by Gas and Electric Operations. (Fonnerly Audit Request No. 125
dated February 10, 2004).
Request No. 122: Please reconcile the schedule provided in response to Audit Request No.
125 with the Commission Basis plant infonnation provided in the Commission Basis reports for the
year ended December 31 2003. (Fonnerly Audit Request No. 126, dated February 10, 2004).
Request No. 123: Please update Company response to Audit Request No. 39 by providing
the calculation of depreciation expense for 2003 separated by A vista Gas and Electric Operations for
the Idaho jurisdiction. Please identify depreciation rates used for each calculation and provide copies
of the related journal entries. (Fonnerly Audit Request No. 127, dated February 10, 2004).
Request No. 124: Please provide a schedule of "Property Held for Future Use" (including
allocations of system wide amounts) for A vista Electric Operations and A vista Gas Operations in
2003. (Fonnerly Audit Request No. 128, dated February 10, 2004).
Request No. 125: Please provide a detailed schedule of "Construction Work in Progress" for
2002 and 2003. (Fonnerly Audit Request No. 129 , dated February 10 2004).
Request No. 126: Please update Company response to Audit Request No. 43 by providing a
detailed schedule of all "Contributions in Aid of Construction" received by A vista Gas and Electric
Operations in 2003 including names, dates , dollar amounts and account numbers where posted with
specific dollar amounts to each account. (Fonnerly Audit Request No. 130, dated February 10
2004).
Request No. 127: Please update Company response to Audit Request No. 44 by providing a
detailed schedule of "Customer Advances for Construction" for 2003 for both A vista Gas and
Electric Operations separated by Company. Please show names, dates, dollar amounts and account
numbers where posted with specific dollar amounts to each account. (Fonnerly Audit Request No.
131 , dated February 10, 2004).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO A VISTA MARCH 4, 2004
Request No. 128: Please update Company response to Audit Request No. 45 by providing a
schedule of plant under construction as of December 31 , 2003 for Avista Gas and Electric
Operations. Include on this schedule the work order numbers, plant that went into service during the
year and the balance at year-end. (Fonnerly Audit Request No. 132, dated February 10, 2004).
Request No. 129: Please update the Company s responses to Audit Request Nos. 46 and 47
by providing a detailed schedule of any land sales (including allocations of system wide amounts) for
A vista Electric and Gas Operations in 2003. Please include the date of sale, description of the sale
and the account numbers and dollar amounts posted to each. (Fonnerly Audit Request No. 133
dated February 10, 2004).
Request No. 130: Please update Company response to Audit Request No. 48 by providing
the most current copies of the budgets for A vista Gas and Electric Operations including the impact
(in dollars) to the Idaho jurisdiction for 2004. Include also at least a list describing the scope, tenn
and approximate costs of all 2004 planned additions and construction to facilities (including
allocations of system wide amounts). (Fonnerly Audit Request No. 134, dated February 10 2004).
Request No. 131: Please update the Company s responses to Audit Request Nos. 49 and 50
by providing a schedule of "Prepaid Items" showing dollar amounts and account numbers where
posted, vendors, and related explanations (including allocations of system wide amounts) for A vista
Electric and Gas Operations in 2003. (Fonnerly Audit Request No. 135 , dated February 10, 2004).
Request No. 132: Please update Company response to Audit Request No. 55 by providing a
schedule of amounts paid for injuries and damages (including allocations of system wide amounts)
for A vista Gas and Electric Operations in 2003. Please include accounts posted and related
explanations for damages paid. (Fonnerly Audit Request No. 136, dated February 10 2004).
Request No. 133: Please provide a copy of the capitalized leases associated with or allocated
to Avista Gas and Electric Operations for the year 2003. (Fonnerly Audit Request No. 137, dated
February 10, 2004).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO A VISTA MARCH 4, 2004
Request No. 134: Please update Company response to Audit Request No. 71 by providing
copies of any accounting adjustments proposed for 2003 during the external audit process that were
recorded or otherwise allocated to Avista Gas and Electric Operations. (Fonnerly Audit Request No.
138, dated February 10, 2004).
Request No. 135: Please provide an accounting report similar to that provided in response to
Audit Request No. 64 that lists the detail of all items in the 930 accounts for the months of January
through March, May through June, August through October 2002. Staff has received the reports for
April, July, November and December 2002. (Fonnerly Audit Request No. 139, dated February 10
2004).
Request No. 136: Please make available in Boise, access to external audit workpapers for the
year ended December 31 , 2003. Please identify the location of the workpapers and the contact name
and phone number of the external auditor we will be working with while reviewing these
workpapers. Please make arrangements with your auditors pennitting our access to these
workpapers. (Fonnerly Audit Request No. 140, dated February 10, 2004).
Request No. 137: Please update Company response to Audit Request No. 105 by providing:
the "Corporate Air Travel Recap Report" for the time periods in 2002 not already
provided to the IPUC Staff auditors. Staff has received the reports for January 28 through February
, 2002, May 28 through June 25 , 2002, August 28 through September 24, 2002 and November 23
through December 20, 2002.
the aircraft trip logs for the year 2002.
(Fonnerly Audit Request No. 141 , dated February 10, 2004).
Request No. 138: Please provide a copy of any requests for authorization to use the
Company aircraft including (but not limited to) any cost analysis, justification, discussion of trip
purpose, and approval of trips that included Idaho destinations in 2002. (Fonnerly Audit Request
No. 142, dated February 10, 2004).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO AVISTA MARCH 4, 2004
Request No. 139: To the extent not already provided, please provide a schedule listing the
actual costs incurred for each trip identified in response to Audit Request No. 142. (Fonnerly Audit
Request No. 143, dated February 10, 2004).
Request No. 140: On page 13 of the 2002 Summary Annual Report, reference is made to
opening Avista s high-speed fiber system to the region s education community. Please describe the
Company s use of the fiber system, the specifics of the collaboration and the costs associated with
both that are allocated to Idaho Gas and Electric Operations. Please include within response the
account codes with the specific dollar amounts that are charged. (Fonnerly Audit Request No. 144
dated February 10, 2004).
Request No. 141: A new outage management tool is identified on page 21 of the 2002
Summary Annual Report. Please identify the areas served by this tool, the costs to create and operate
this tool, and the benefits provided by it. Please include within response the amounts, years and
account codes that are charged including the amounts allocated to Idaho Gas and Electric Operations.
(Fonnerly Audit Request No. 145, dated February 10 2004).
Request No. 142: How many gas customers does Avista have in the Idaho jurisdiction?
Please provide by customer class and rate schedule. (Fonnerly Audit Request No. 146, dated
February 10, 2004).
Request No. 143: How many electric customers does Avista have in the Idaho jurisdiction?
Please provide by customer class and rate schedule. (Fonnerly Audit Request No. 147, dated
February 10 2004).
Request No. 144: How many customers in the Idaho jurisdiction are both gas and electric
customers? (Fonnerly Audit Request No. 148, dated February 10, 2004).
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO A VISTA MARCH 4, 2004
Request No. 145: What are the specifics of the contracts listed in the spreadsheet sent in
response to Audit Request No. 114? Specifically, please provide a schedule showing the following:
Sale or Purchase, Finn or Non-Finn, On-Peak, Off-Peak or Flat, delivery dates and the commodity
price. (Fonnerly Audit Request No. 149, dated February 10 , 2004).
Request No. 146: Please provide Staffwith a copy of the 2003 Federal Income Tax return
as well as the Idaho tax return for 2003. (Fonnerly Audit Request No. 150, dated February 10
2004).
Request No. 147: Please provide Staff with any amended state and federal income tax
returns filed since January 1 , 2003 to date. (Fonnerly Audit Request No. 151 , dated February 10
2004).
Request No. 148: In addition to the 2002 general allocation factors previously requested in
Audit Request No. 109, please provide the allocation factors for 2003 for both Gas and Electric
operations. (Fonnerly Audit Request No. 152, dated February 10, 2004).
Dated at Boise, Idaho, this "'f l:? day of March 2004.
C'.
~~~
t Woodbury
Deputy Attorney General
Technical Staff:Patricia Hanns
Terri Carlock
i:umisc:prodreq/avue04.- avug04.swphtc2
SECOND PRODUCTION REQUEST OF
THE COMMISSION STAFF TO A VISTA MARCH 4, 2004
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 4TH DAY OF MARCH 2004
SERVED THE FOREGOING SECOND PRODUCTION REQUEST TO A VISTA
CORPORATION IN CASE NO. AVU-04-1IAVU-04-, BY MAILING A COpy
THEREOF, POSTAGE PREPAID, TO THE FOLLOWING:
DAVID J. MEYER
SR VP AND GENERAL COUNSEL
A VISTA CORPORATION
PO BOX 3727
SPOKANE W A 99220-3727
E-mail dmeyer(fYavistacorp.com
KELLY NORWOOD
VICE PRESIDENT - STATE & FED. REG.
A VISTA UTILITIES
PO BOX 3727
SPOKANE WA 99220-3727
E-mail Kelly.norwood(fYavistacorp.com
g!~2D ~orL
SECRETARY
CERTIFICATE OF SERVICE