20040602Responses of Avista to Staff.pdf

Avista Corp.
1411 East Mission PO Box 3727
Spokane, Washington 99220-3727
Telephone [phone]
Toll Free 800-727-9170 ~~~'V'STA~
Corp.
June 1 , 2004
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ill 83720-0074
1\ttn: Scott Woodbury
Deputy 1\ttomey General
Idaho Public Utilities Commission
Office of the Secretary
RECEIVED
JUN - 2 2004
Boise, Idaho
Re:Production Request of the Commission Staff
in Case Nos. 1\ VU-04-01 and 1\ VU-04-
Mr. Woodbury,
I have ~ched an original and three copies of 1\ vista s response to Staff Data Request
NO(S)~31 , 2 , ~82 283, 284, 285, and 289.
0\1-1
~ k E\ ~"- ~ ,,\~ ;.J d L\
If you have any questions, please call me at [phone].
Mike
Rate J\nal yst
Enclosures
Enclosures
Copy: C. Ward (Potlatch)
D. Peseau (Utility Resources, Inc)
A. Yankel (Yankel & Assoc., Inc)
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
C1\SE NO:
REQ UES TER :
TYPE:
REQUEST NO.
Idaho
1\ VU-04-01 / 1\ VU-04-
IPUC
Data Request
231
D 1\ TE PREP 1\RED: 5/28/2004
WITNESS: Brian Hirschkom
RESPONDER: Brian Hirschkom
DEPAATMENT: Rates
TELEPHONE: [phone]
REQUEST: For the test year, please provide a bill frequency analysis for Service Schedules 21
and 25. Include both number of bills in the block and energy use in the block for all months. For
usage from 0 to 500,000 kwh provide incremental blocks of 50,000 kwh; then from 500,000 kwh
to 1 000 000, in increments of 100,000; 1,000,000 to 2 000,000 kwh; 2 000,000 to 5 000,000
kwh; 5,000,000 to 10,000 000 kwh; and over 10,000,000 kwh. Please provide this in Excel 2000
format.
RESPONSE: Per discussion with Dave Schunke of the IPUC staff, attached is the monthly bill
frequency analysis for Schedule 21 for 2003. This information is not available in Excel format.
1\ spreadsheet showing the monthly billing determinants for Schedule 25 customers is shown on
page ED15 of Mr. Hirschkom s workpapers and is included in excel format.
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1
VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
c1\SE NO:
REQ UES TER:
TYPE:
REQUEST NO.
Idaho
1\ VU-04-01 1 1\ VU-04-
IPUc
Data Request
232
D1\TE PREPJ\RED: 5/28/2004
WITNESS: Brian Hirschkom
RESPONDER: Brian Hirschkom
DEP1\RTMENT: Rates
TELEPHONE: [phone]
REQUEST: For the test year, please provide a bill frequency analysis for Service Schedule 31
for each month. Include both number of bills in the block and energy use in the block. The usage
blocks are from 0 to 85 kwh; 85 to 100 kw, then 100 kwh to 500 kwh in increments of 100 kwh;
then 500 to 5,000 kwh in increments of 500 kwh; 5,000 to 10,000 kwhs; 10 000 to 25,000 kwh;
25,000 to 50,000 kwh; 50,000 to 100 000 kwh; 100,000 to 350 000 and over 350 000 kwh.
Please provide this in Excel 2000 format.
RESPONSE: Per discussion with Dave Schunke of the IPUc staff, attached is the total billed
by block from the monthly bill frequency analysis for Schedule 31 for 2003. This information is
not available in Excel format.
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VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURlSDICTION:
C1\SE NO:
REQUESTER:
TYPE:
REQUEST NO.
Idaho
A VU-O4-01 / A VU-O4-
IPUC
Data Request
282
D1\TE PREPJ\RED:
WITNESS:
RESPONDER:
DEP AATMENT:
TELEPHONE:
OS/28/2004
Knox
Tara Knox
Rates
[phone]
REQUEST:
Please provide a Cost of Service analysis for General Service Schedule 11 , where Schedule 11 is
separated between demand metered customers and non-demand metered customers. The non-
demand metered customers are all those who do not have demand meters. Include the number of
customers who are non-demand metered, and their normalized annual energy usage below and
above 3650 kWh/month. Please provide this in Excel 2000 format.
RESPONSE:
1\ttached is a copy of the Cost of Service Basic Summary and the related usage and customer
statistics from the workpapers for the 2001 Unbundled Cost Report filed with the Idaho
Commission July 1 , 2002. Column (h) and (bh) titled General Service Sch 11 N shows the
analysis for non-demand metered Schedule 11 customers. Column (j) and (bj) titled General
Service Sch 11 D shows the analysis for demand metered Schedule 11 customers.
J\nnual average usage per customer:Demand Metered
40,483
Non-mand Metered
148
During the 2001 test year there were 15 699 Schedule 11 customers; 2 021 demand metered and
678 non-demand metered. Usage block data is not available separately for these groups ofcustomers.
The cost segregation between demand metered and non-demand metered Schedule 11 customers
provided in the unbundled cost analysis is estimated based on existing billing determinants (i.
energy usage, billed demand, and number of bills) for the demand metered customers. The
energy and number of customer allocation factors are known variables. However, the demand
allocation factors for the demand metered customers were essentially pro-rated based on relative
energy usage as no segregated statistics are available at this time to enable more refined
coincident peak or non-coincident peak allocations.
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VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
C1\SE NO:
REQUESTER:
TYPE:
REQUEST NO.
Idaho
1\ VU-04-01 1 1\ VU-04-
IPUC
Data Request
283
D1\ TE PREP J\RED: 5/28/2004
WITNESS: Brian Hirschkom
RESPONDER: Brian Hirschkom
DEPAATMENT: Rates
TELEPHONE: [phone]
REQUEST: What is the cost justification for applying the PC1\ Surcharge on a uniform
percentage basis rather than a uniform cents/kwh basis to each service schedule.
RESPONSE: From a cost-causation/justification viewpoint, application of the PC1\ Surcharge
on a uniform cents/kwh basis would be more appropriate than on a uniform percentage basis.
However, since the inception of the company s peA in 1989, all rate adjustments have be
applied on a uniform percentage basis, which was the methodology originally proposed by the
company and approved by the Commission.
JURISDICTION:
C1\SE NO:
REQUESTER:
TYPE:
REQUEST NO.
VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
Idaho
1\ VU-04-01 1 1\ VU-04-
IPUC
Data Request
284
D1\TE PREPJ\RED: 5/19/2004
WITNESS: Brian Hirschkom
RESPONDER: Brian Hirschkom
DEP1\RTMENT: Rates
TELEPHONE: [phone]
REQUEST: Has the company considered Time of Use (TOU) rates for any of their customers?
RESPONSE: The Company has considered TOU rates for several large (Schedule 25)
customers where the necessary metering is already in place. We polled several large customers
to solicit their interest. in shifting a portion of their usage from "on-peak" to "off-peak". For
some customers, their load is fairly flat throughout the day and there was not much opportunity
to shift load. For a few that could shift usage, using typical on-peak and off-peak daily market
price differentials, there was not enough financial incentive to shift their usage. (1\lso, see
response to Request No. 257)
VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
C1\SE NO:
REQUESTER:
TYPE:
REQUEST NO.
Idaho
1\ VU-04-01 1 1\ VU-04-
IPUC
Data Request
285
D1\TE PREPARED: 5/19/2004
WITNESS: Brian Hirschkorn
RESPONDER: Brian Hirschkorn
DEP1\RTMENT: Rates
TELEPHONE: [phone]
REQUEST: What steps would be required, and what would be the cost to implement TOU rates
for Schedule 25?
RESPONSE: The company would first have to conduct a major feasibility study. The
feasibility study must assess the potential applicability to Potlatch's Lewiston Plant, as well as
other Schedule 25 customers. The company recently signed a new long-term purchase and sale
agreement with Potlatch for service to their Lewiston plant under Schedule 25 rates. The
contract does not address or contemplate TOU rates. Potlatch's Lewiston plant is responsible for
approximately 75% of Idaho Schedule 25 kwhs billed (100 megawatts), and the company
purchases approximately 60 megawatts of Potlatch's generation. Can TOU rates be applied to
service to Potlatch's Lewiston Plant? If so, should the company pay Potlatch TOU rates for their
generation commensurate with retail rates?
1\ major part of the feasibility study would be to study the cost differences over time to
determine rational time period and rate variables. This study would involve educating Schedule
25 customers, as well as estimating their potential usage in time period blocks given various
rates. (Do the TOU rates need to accurately reflect costs?) Part of the feasibility study needs to
determine which customers cannot alter their usage because of factors other than price, and how
many can. How many would alter their usage by time period? 1\ key issue for the company is
revenue sufficiency, or reasonable assurance that an adequate level of revenue is collected.
Therefore, accurately estimating usage by time period or establishing an alternative "make-
whole" mechanism is critical.
The feasibility study would determine if TOU rates for Schedule 25 customers makes sense and,
if so, what steps need to be taken prior to implementation. The cost of implementation should
not be substantial as the necessary metering is already in place for these customers.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
C1\SE NO:
REQUESTER:
TYPE:
REQUEST NO.
Idaho
1\ VU-04-01 1 1\ VU-04-
IPUC
Data Request
289
DATE PREP1\RED: 5/28/2004
WITNESS: Brian Hirschkorn
RESPONDER: Brian Hirschkorn
DEP1\RTMENT: Rates
TELEPHONE: [phone]
REQUEST: Other than energy, what other services, if any, are provided to the lighting
schedules?
RESPONSE: Under Schedules 41 and 42 (company-owned), the company installs, owns and
maintains the light, as well as providing energy service. Under Schedules 43 and 44 (customer-
owned), the customer is responsible for installation and ownership of the light; the company
provides maintenance and energy service. Under Schedules 45 and 46, the customer
responsible for installation, ownership and maintenance; the company only provides energy
servIce.
Under 1\rea Lighting Schedules 47, 48 and 49, the company installs, owns and maintains the
light, as well as providing energy service.