HomeMy WebLinkAbout20040616Responses 27, 34 of Avista to CAPAI.pdfAvista Corp.
1411 EaSt Mission PO Box 3727
Spokane, Washington 99220-3727
Telephone 509-489-0500
Toll Free 800-727-9170
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June 15 2004
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UTILITIES. COr0H1IS SION
Brad Purdy
Attorney at Law
2019 N. 17th 8t.
Boise, ill 83702
Re:First Production Request of CAP AI.
in Case Nos. A VU-04-01 and A VU-04-
Mr. Purdy,
I have attached one copy of Avista s response to CAPAI's Data Request No(s). 27 and
34.
If you have any questions, please call me at (509) 495-4706 or Don Falkner at (509) 495-
4326.
Mike Fin
Rate Analyst
A vista Utilities
Enclosures
Cc:M. Karp
S. Woodbury
D. Peseau
A. Yankel
C. Cox
(A W.I.S.
(IPUC)
(Utility Resources, Inc.
(Yankel & Assoc, Inc.
Coeur )
VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUES TER:
TYPE:
REQUEST NO.
Idaho
A VU-04-01 / A VU-04-
CAP AI
Data Request
DATE PREPARED:
WITNESS:
RESPOND ER:
DEPARTMENT:
TELEPH ONE:
06/11/2004
Don KopczYnski
Bill PaYne
Internal Audit
(509) 495-8749
REQUEST:
Every internal audit performed during the last three years of any office or company unit
performing collection functions, where the audit examined issues relating to deferred payment
plans, telephone credit and collection calls, the taking of deposits, field collection calls, or some
other collections-related function.
RESPONSE:
No such audits have been performed during the last three years.
VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.
Idaho
A VU-O4-01l A VU-O4-
CAP AI
Audit Data Request
DATE PREPARED:
WITNESS:
RESPOND ER:
DEPARTMENT:
TELEPHONE:
6/11/2004
Don KopczYnski
Lori Hermanson
Energy Delivery Acctg.
(509) 495-4658
REQUEST:
Please provide a detailed description of how the Company calculates its uncollectible allowance
(i., the amount of bad debt the Company considers acceptable). Separately provide the most
recent calculation of the uncollectible allowance, including sufficient underlying work papers
and analysis to permit the duplication of the calculation.
RESPONSE:
The level of the uncollectible allowance IS managed to the previous year s highest 3-month total
of write-offs, adjusted for anticipated rate increases/decreases. We also reserve 100% for
everything over 90 days.
In addition, we look at write-offs as a percent of revenue and apply this average of this ratio to
estimated annual revenues. This gives you your projected reserve with estimated annual net
write-offs included. When you back out the estimated annual net write-offs, you have the
projected reserve balance for 0-90 day receivables. All receivables over 90 days are added to
this projection to give you an estimated reserve balance to cover all receivables of about $2.
million.
The accrual balances are monitored monthly and are adjusted as necessary in case actual write-
offs differ significantly from what we had anticipated and budgeted. We were projecting to have
the uncollectible allowance at a balance of about $2m. However, write-offs have been
significantly more than projected, so the monthly accrual will most likely be adjusted.
For ratemaking purposes, the test year accrual is adjusted to actual uncollectible write-offs.
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