HomeMy WebLinkAbout200405062nd Request of Potlatch to Avista.pdfConley E. Ward (ISB No. 1683)
GIVENS PURSLEY LLP
601 W. Bannock Street
O. Box 2720
Boise, ID 83701-2720
Telephone No. (208) 388-1219
Fax No. (208) 388-1300
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UTiliTIES COMMISSION
Attorneys for Potlatch Corporation
S:\CLlENTS\1314\S4\POllatch 2nd Disc Req 10 Avista.DOC
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA 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. A VU-04-
A VU-04-
POTLATCH CORPORATION'
SECOND SET OF DISCOVERY
REQUESTS TO A VISTA
CORPORATION
YOU WILL PLEASE TAKE NOTICE that Potlatch Corporation ("Potlatch"), requests
that Avista Corporation ("Avista ) answer the following discovery requests in accordance with
the Idaho Public Utilities Commission s Rules of Procedure.
Definitions and Instructions
The interrogatories and document requests are governed by the following definitions and
instructions:
DEFINITIONS
You
" "
your" or "A vista" means or pertains to the named respondent in this
matter and includes, without limitation, A vista, its officers, directors, employees
agents, attorneys, corporate subsidiaries and affiliates
POTLATCH CORPORATION'S SECOND SET OF DISCOVERY REQUESTS TO AVISTA
ORIGINALCORPORATION - Page 1 of 12
Persons" means any and all natural persons, corporations, businesses, firms
companies, partnerships, unincorporated associations, governmental or public
agencies, joint ventures and all other entities, including, without limitation, all
employees, representatives, consultants and agents of any of the foregoing.
Documents" means any and all written, electronic or graphic matter, of any kind
or description, however created, produced, reproduced or stored, whether sent or
received, or whether originals, copies or drafts, including, but not limited to
every side of every page of all letters, papers, books, correspondence, bulletins
circulars, instructions, telegrams, cables, telex messages , facsimiles, memoranda
notes, notations, work papers, transcripts, minutes, reports, recordings of notes or
meetings, conferences, interviews or telephone or other conversations, affidavits
statements, summaries, opinions, studies, analyses, evaluations, work sheets
contracts, agreements, journals, statistical records, desk or pocket calendars
appointment books, diaries, lists, tabulations, advertisements, sketches, drawings
blue prints, catalogs, audio or video records, photographs, computer printouts, e-
mail transmissions, data processing input and output, deeds, microfilm, all other
records kept by electronic, photographic or electrical means , and things similar to
any of the foregoing however denominated.
Relating to" or "Relate(s) to" means directly or indirectly mentioning, consisting
, evidencing, describing, referring to, pertaining to, being connected with, or
reflecting upon the stated subject matter.
The words "any" and "all" shall be considered to include each and every.
POTLATCH CORPORATION'S SECOND SET OF DISCOVERY REQUESTS TO A VISTA
CORPORATION - Page 2 of 12
The singular of any word shall include the plural and the plural of any word shall
include the singular.
The word "expert" as used herein includes any person who will be offering expert
testimony on behalf of A vista or who has been consulted or relied upon by any
person who assisted in the preparation of the responses to these interrogatories
and document production requests or who will be offering testimony on behalf of
A vista in this matter.
Instructions
In answering these interrogatories and document requests, you are required to furnish all
information that is available to you, or subject to your reasonable inquiry, including the
information in the possession of you, your attorneys or other persons directly, or indirectly
employed by, or connected with, you or your attorneys, and anyone else other wise subject to
your control. In answering each interrogatory and document request:
Identify by title, heading or caption, date, sender, recipient, location and
custodian, each document relied upon, reviewed or which forms a basis for the response given or
which corroborates or relates to the response given or the subject of what is given in response to
these discovery requests;
State whether the information furnished is within the personal knowledge of the
person responding and, if not, the name, if known, of each person to whom the information is a
matter of personal knowledge;
Identify each person who assisted or participated in preparing and/or supplying
any of the information given in response to or relied upon in preparing responses to these
discovery requests;
POTLATCH CORPORATION'S SECOND SET OF DISCOVERY REQUESTS TO A VISTA
CORPORATION - Page 3 of 12
Where a discovery request calls for a response in multiple parts, each part should
be separated in the response so that the response is clearly understandable and complete;
Where the name or identity of a person is requested, state the full name, business
address, and any telephone numbers of each person;
If any of your responses require the production of documents, label the documents
to indicate the discovery request to which you are responding.
If you object to the production of any document called for in these document
requests, for each such document state the following: (1) the reasons for the objection and any
facts supporting the objection; (2) give a description of each document including, without
limitation, the date, sender, recipient(s), persons to whom copies have been furnished, job titles
of each of the persons, subject matter of the document, number of pages of the document, the
number(s) of the request to which such document is responsive and the identity ofthe person in
whose custody the document is presently located.
If any document is withheld under claim of privilege or work product, furnish a
list identifying each document for which the privilege or work product is claimed, together with
the following information for each such document: date, sender, recipient(s), persons to whom
copies were furnished, job titles of each of those persons, subject matter ofthe document
number of pages of the document, the bases on which the privileges or work product is claimed
the paragraph(s) ofthese requests to which the document responds, the person in whose custody
the document is presently located, and whether any matter that is not privileged or is not work
product is discussed or mentioned in each document.
If any document requested was, but is no longer in the possession or subject to the
control of A vista, or is no longer in existence, state whether it: (1) is missing or lost; (2) has
POTLATCH CORPORATION'S SECOND SET OF DISCOVERY REQUESTS TO A VISTA
CORPORATION - Page 4 of 12
been destroyed; (3) has been transferred voluntarily or involuntarily to others and state the
identity of the persons to whom it has been transferred; (4) has otherwise been disposed of, or in
each instance explain the circumstances surrounding such disposition, state the date or
approximate date thereof and the identity of the persons with knowledge of such circumstances;
(5) identify the documents that are missing, lost, destroyed, transferred or otherwise disposed of
by author, date, subject matter, addressee(s), and the number of pages.
If you do not clearly understand, or have any questions about, these definitions
instructions interrogatories or requests, contact counsel for Potlatch promptly for clarification.
These discovery requests are continuing in nature and require supplemental
responses upon the discovery or receipt of new or additional information.
REQUEST NO. 21: Please refer to Mr. Morris s testimony at page 16, lines 18-21. Is
A vista proposing in this filing a rate increase associated with the AMR to be adopted in a
subsequent filing? Please explain the general purpose of the accounting proposal regarding
AMR in this context.
REQUEST NO. 22: Please refer to Mr. Morris s testimony at page 17, lines 13-17. For
each year from 2003 through 2006, specify the annual increases in A vista s firm transmission
and load carrying capability resulting from the annual transmission capital expenditures.
REQUEST NO. 23: Again please refer to Mr. Morris s testimony at page 17, lines 13-
17. Does the proposed inclusion of transmission capital costs in rate base amount to a request to
include $9 million of CWIP in rate base? Please explain why or why not.
REQUEST NO. 24: Please refer to Mr. Morris s testimony at page 20, lines 1-14.
Please provide the most recent manufacturer s estimates of the date that the transformer will be
repaired and returned to the Coyote Springs site.
POTLATCH CORPORATION'S SECOND SET OF DISCOVERY REQUESTS TO A VISTA
CORPORATION - Page 5 of 12
REQUEST NO. 25: Please refer to Mr. Morris s testimony at page 17, lines 13-17. At
what point after the return of the transformer does A vista expect Coyote Springs 2 to become
used and useful?
REQUEST NO. 26: Please refer to Mr. Morris s testimony at page 20, lines 9-10. Does
the request at this point to include CS2 in rate base amount to a request to include CWIP in rate
base? Please explain.
REQUEST NO. 27: Please specify the monthly average energy output ofCS2 (Avista
share) from July 2003 to January 15, 2004. Also provide monthly capacity factors of CS2.
REQUEST NO. 28: Please provide copies of all rating agency reports on A vista
Corporation s debt from January 1 , 1999 to the present. Please re-calculate the schedule
appearing on pages 5-7 of Avista s response to Staff Data Request No. 108 assuming that
Avista s debt rating had remained at the pre-downgrade levels. Assume the same issuance dates
and specify any other assumptions and calculations made. Provide details sufficient to verify
and replicate the results.
REQUEST NO. 29: Please refer to Mr. Storro s testimony at page 5, lines 4-8. Was the
25-35 MW wind resource agreement in fact executed? Please provide a general description of
on-line dates and performance expectations plus a copy of any executed agreement.
REQUEST NO. 30: Please refer to Mr. Storro s testimony at page 5 , lines 13-20.
Please explain what portion ofthe $6.6 million has been spent and when the estimated 17 MW
and 3aMW of capacity and energy became available to A vista.
REQUEST NO. 31: Please provide an update as of March 31 2004 of the CS2
construction cost figure cited at Mr.Lafferty page 24, lines 4-
POTLATCH CORPORATION'S SECOND SET OF DISCOVERY REQUESTS TO A VISTA
CORPORATION - Page 6 of 12
REQUEST NO. 32: Please provide an update as of the same date of the amounts cited
by Mr. Lafferty at page 25, lines 3-
REQUEST NO. 33: Please provide itemized cost components and documentation of the
$3.7 million of CS2 operating costs Mr. Lafferty cites on page 28, lines 13-15.
REQUEST NO. 34: Please provide in Excel-usable format details of all hedging
activity by transaction conducted by A vista Utilities in the time frame April 1 , 2000-December
, 200 I , including for each transaction: the date transactions were entered, the terms and type of
hedge, and the broker and counterparty.
REQUEST NO. 35: Please identify by name and title each individual participating in
making, or approving each of the 4 hedging transactions identified as Deal A and Deal B , and
describe the role each played in the transactions.
REQUEST NO. 36: Please identify by name and title each individual directly
authorizing each of Deals A and B.
REQUEST NO. 37: Please identify by name and title the highest-ranking individual
aware of each of Deals A and B prior to the entering of each transaction.
REQUEST NO. 38: Please provide copies of all analyses, risk evaluations, gas market
forecasts, memoranda and all other documents prepared for or used in the evaluation of and
justification of, the timing and need for Deals A and B.
REQUEST NO. 39: Please indicate the trading limit or exposure in dollars that any
A vista trader or transactor may engage in, per transaction, if any. Provide the same information
for all individuals involved in Deals A and Beven if no longer in Avista s employ. Provide
sufficient details to fully explain how the trading limits are enforced.
POTLATCH CORPORATION'S SECOND SET OF DISCOVERY REQUESTS TO A VISTA
CORPORATION - Page 7 of 12
REQUEST NO. 40: Please provide transaction summaries for each and every hedge
entered into by Avista Utilities in 2002 and 2003.
REQUEST NO. 41: Provide on a monthly basis, November 2001 through March 2004
a comparison of each month's Deal A and Deal B hedged price actually paid by Avista Utilities
with the monthly delivered index-based price for each corresponding month.
REQUEST NO. 42: Please identify which of the transactions on Exhibit 7, Schedule 19
were for physical natural gas and which were financial trades.
REQUEST NO. 43: Please provide a list with details of all other A vista Utilities
hedging transactions for periods longer than 3 months entered into since January 1 2000.
REQUEST NO. 44: Please refer to Mr. Lafferty's testimony on page 31 , lines 5-6 and
explain how the 4 hedging transactions (as opposed to the original index purchase) added to gas
supply.
REQUEST NO. 45: Please provide copies Avista Uitilities' and Avista Energy
monthly and cumulative hedging settlement reports for each of the Deal A and B hedging
transactions (month-end mark-to-market for each of the 4 hedges) from April 2001 to the
present. Provide all monthly detail necessary to replicate the calculations.
REQUEST NO. 46: Please provide copies of all agreements, memoranda, codes of
conduct or other documents that relate to Avista Energy s duties and obligations when providing
brokerage or gas or electric supply services to Avista Utilities, Avista Corporation, or any of its
affiliates.
REQUEST NO. 46: Please explain how the price for the swaps between A vista Utilities
and A vista Energy was determined or negotiated.
POTLATCH CORPORATION'S SECOND SET OF DISCOVERY REQUESTS TO A VISTA
CORPORATION - Page 8 of 12
REQUEST NO. 47: Please provide a detailed explanation of the reference in Exhibit
, Schedule I , line 67 to a "Puget Sale" in the amount of $10 279 000.
REQUEST NO. 48: Re: Exhibit 10, 2 of 2, line 80. Ifthis entry is "expense for gas
purchased for, but not consumed for generation" and is purchased at index-based prices, why has
it not been "flipped" or simultaneously re-sold into the same indexed market at the same price?
In other words, why aren t the figures $17.8 million and $40.9 million the same? Please provide
a detailed explanation.
REQUEST NO. 49: Re: Exhibit 7, Schedule 21 , page 1 of70. Please provide a
detailed explanation with supporting documents for the statement "Seemed to be a lack of
transport available - Newport not interested in releasing to Av. Had lost out on bid for GTN
transport available 11/1/02"
REQUEST NO. 50: Re: Exhibit 7, Schedule 21 , page 1 of70. Please provide a
detailed explanation of the meaning, under Transmission Alternatives the statement "May be
dropped off Kingsgate - RGEN - STAN - COYO or MALIN"
REQUEST NO. 51: Please provide copies of the monthly reports on the "Commission
Basis" referenced by Mr. Falkner at page 5 of his testimony.
REQUEST NO. 52: Please provide in Excel format the cost of service model used in
the testimony and exhibits of Ms. Tara Knox.
REQUEST NO. 53: Please provide the results of spreading the $16.3 million annual
revenue reduction on a kwh basis rather that the uniform percentage basis described by Mr.
Hirshkorn, at page 3, lines 16-21.
POTLATCH CORPORATION'S SECOND SET OF DISCOVERY REQUESTS TO A VISTA
CORPORATION - Page 9 of 12
REQUEST NO. 54: Please provide, for the calendar year 2003, complete electric
revenue normalization assumptions, inputs and supporting data and work papers (Hirshkorn
pages 6-7).
REQUEST NO. 55: Please provide, for the calendar year 2003, customer counts
customer usage and customer class revenues.
REQUEST NO. 56: Please provide the most recent load forecasts by customer class for
2004, 2005 and 2006.
REQUEST NO. 57: Please provide monthly index prices in Excel format for each
month January 2001 through December 2003 at Sumas, Kingsgate, Malin, Stanfield, AECO
Opal (or Rockies) and NYMEx. Also, please provide the Enron OnLine or TFS or other sheets
that are contemporaneous with the referenced index prices.
DATED this 6th day of May 2004.
wJJ
POTLATCH CORPORATION'S SECOND SET OF DISCOVERY REQUESTS TO A VISTA
CORPORATION - Page 10 of 12
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 6th day of May 2004, I caused to be served a
true and correct copy of the foregoing document by the method indicated below, and
addressed to the following:
Jean Jewell
Idaho Public Utilities Commission
472 W. Washington Street
O. Box 83720
Boise, ID 83720-0074
( ) u.S. Mail
( .I) Hand Delivered
( ) Overnight Mail
) Facsimile
Scott Woodbury
John Hammond
Idaho Public Utilities Commission
472 W. Washington Street
O. Box 83720
Boise, ID 83720-0074
swoodbu~puc.state.id. us
j hammon~puc. state .id. us
( ) U.S. Mail
) Hand Delivered
) Overnight Mail
( ) Facsimile
( Jj E-Mail
David J. Meyer
Senior Vice President and General Counsel
A vista Corporation
O. Box 3727
1411 E. Mission Ave., MSC-
Spokane, W A 99220-3727
david.meyer~avistacorp. com
( ) U.S. Mail
( )
Hand Delivered
( ) Overnight Mail
( ) Facsimile
( JJ E-Mail
Kelly Norwood
Vice President, State and Federal Regulation
A vista Utilities
O. Box 3727
1411 E. Mission Ave., MSC- 7
Spokane, W A 99220-3727
kelly .norwood~avistacorp.com
( ) U.S. Mail
( )
Hand Delivered
) Overnight Mail
( ) Facsimile
( II E-Mail
Dennis E. Peseau, Ph.
Utility Resources, Inc.
1500 Liberty Street SE, Ste. 250
Salem, OR 97302
dpeseau~excite.com
(v'J U.S. Mail
( )
Hand Delivered
( ) Overnight Mail
) Facsimile
(./J E-Mail
POTLATCH CORPORATION'S SECOND SET OF DISCOVERY REQUESTS TO AVISTA
CORPORATION - Page 11 of
Charles LA. Cox
EVANS, KEANE
111 Main Street
O. Box 659
Kellogg, ID 83837
ccox~usamedia. tv
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Hand Delivered
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) E-Mail
Brad M. Purdy
Attorney at Law
2019 N. 1 ih Street
Boise, ID 83702
bmpurdy~hotmail.com
Michael Karp
147 Appaloosa Lane
Bellingham, W A 98229
michael~awish.net
POTLATCH CORPORATION'S SECOND SET OF DISCOVERY REQUESTS TO A VISTA
CORPORATION - Page 12 of