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HomeMy WebLinkAbout20080606AVU to Staff 6, 9, 11, 23 etc.pdfAvista Corp. 1411 East Mission P.O. Box 3727 Spokane. Washington 99220-0500 Telephone 509-489-0500 Toll Free 800-727-9170 ! :::J ~~'V'STA. Corp. ZOUB JUN -6 AH 9= 11 June 5, 2008 Idaho Public Utilities Commission 472 W. Washington St. Boise, il 83720-0074 Attn: Scott Woodbur Deputy Attorney General Re: Production Request of the Commission Staff in Case Nos. A VU-E-08-01 and A VU-G-08-01 Dear Mr. Woodbury, Enclosed are an original and three copies of Avista's responses to IPUC Staffs production requests in the above referenced docket. Included in this mailing are Avista's responses to production requests 006, 009, 011, 023, 026-027, 035, 046, 050, 064, 070, 074-075, 080-086, 092, 095-099, 101, 112-113, and 115-116. The electronic versions of the responses were emailed on 6/05/08 and are also being provided in electronic format on the CDs included in ths mailing. If there are any questions regarding the enclosed information, please contact me at (509) 495- 8620 or via e-mail atpat.ehrbar~avistacorp.com Sincerely,Q~~ Patrck Ehrbar Regulatory Analyst Enclosures . . . AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO A VU-E-08-0l / A VU-G-08-0l IPUC Production Request Staff-006 DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/08 Don Kopczyski Elizabeth Andrews State & Federal Reg. (509) 495-8620 REQUEST: Please provide a detailed list with explanation of all cost-cutting measures undertaken by the Company durng 2005-2008. Please also provide the quatifiable results ofthose measures. RESPONSE: In addition to the ongoing management of budget to actual expenditures, the Company has implemented a varety of cost-savings measures in the 2005-2008 time frame. These include: . Integrated Voice Response (IV) . . Outage Management . Mobile Dispatch . Web Redesign . Every Little Bit Energy Efficiency Campaign . Bil Print and Mail Outsourcing . Transmission and Distrbution System Effciencies . Design Locates . Regional Infrastrcture Effciency Plan . Craft Training . Asset Management (Furher description can be found in Company witness Mr. Kopczynski's testimony at Exhibit No. 9.) Any savings associated with the cost-savig measures noted above have been reflected in the test period. Varous ad hoc short-term initiatives are implemented from time to time by individual deparents, but no specific trackig of ths is available. AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION.JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO AVU-E-08-0l / A VU-G-08-0l IPUC Production Request Staff-009 DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/08 Elizabeth Andrews Jeane Pluth State & Federal Reg. (509) 495-2204 REQUEST: Please provide the total amounts spent on the following activities durng 2007 and show how the amounts were allocated between Avista Utilities and Avista Corp and its subsidiares: e. f..g. h. i. J. k. a. Internal auditing expenses (by employees and consultants); b. Avista's anual report; c. Deloitte & Touche and Deloitte Consulting; d. Rating agencies; All softare or information system-related items; Board of Directors compensation, travel expenses, meeting expenses; Corporate or charered aircraft; Travel and training for all shared executives of A vista Utilities and affliates; Insurance coverage; Overhead items including utilties, property taxes, securty serces, and other corporate headquarers expenses, and All other allocated expenses. RESPONSE: Avista directly assigns all costs to Avista Utilties/Corp. and to its subsidiares; therefore, there is no allocation of costs between the entities. Dung their site visit the week of May 16-20, IPUC Staff was provided a copy of the Washington Subsidiar Transaction Report for 2007. Ths report describes all transactions between A vista and its subsidiares. Additional information is provided below: a. Internal auditing expenses (by employees and consultants) - Total direct labor and consultants charges that were charged to Organzation J54-lnternal Audit, totaled $1,720,100 for 2007. Included in ths amount is $1,202,684 for the accru for the exteral auditors, Deloitte & Touche. Also included is $33,322 of direct labor that was charged to subsidiares..b.Avista's anual report - Total 2007 costs recorded for Avista's Anual Report was $103,589, all of which was recorded as Avista Utilties/Corp. expense. c. . Deloitte & Touche and Deloitte Consulting - Total paid by A vista Utilities to Deloitte in 2007 was $1,270,190. $1,262,039 was recorded as expense by Avista Utilities/Corp. and $8,151 was biled to subsidiares. In addition, the subsidiares paid directly to Deloitte fees of approximately $600,000 in 2007. d. Rating agencies - Costs for debt issuance are recorded by the Utility/Corp. in FERC Account 181860. Anual servce fees paid to rating agencies for 2007 totaled $187,500 and are recorded in FERC Account 930200 as Avista Utilities/Corp. expense. e. All softare or information system-related items - There is ver limited shared softare between A vista and its subsidiares. The Oracle General Ledger fiancial system is used by a few of the subsidiares to streamline the consolidation of financial statements with the Utility. A vista Energy was biled $11,700 for the maintenance of the Oracle system. In addition, Energy was biled $9,000 for varous other softare maintenance. Advantage IQ utilizes the human resources softare. Advantage IQ is biled $2 per payroll check that is processed each month. . . f. Board of Directors compensation, travel expenses, meeting expenses - All A vista Corp. Board of Directors costs are recorded by Avista Utilities/Corp. in FERC Account 930200. As detailed in the March 31, 2008 Proxy Statement, compensation paid to directors durng 2007 totaled $967,600 (including cash and stock). Travel and meeting expenses totaled approximately $37,200 in 2007. g.Corporate or charered aircraft - All airplane usage by the subsidiares based on varable costs incured are fully charged back to the individual subsidiar. For 2007, the subsidiares were biled a total of $4,312 for the. airplane use. Charges of $94,973 were charged to non-utiliy. h.Travel and training for all shared executives of A vista Utilities and affiliates - Travel and training costs that were reimbursed to offcers though their expense reports totaled approximately $111 ,000 for 2007. Included in this amount is approximately $1,600 that was recorded as non-utility. 1.Insurance coverage - Insurance premiums paid in 2006/2007 for 2007 totaled approximately $6.0 milion. Of this amount approximately $864,000 was biled to subsidiares. J.Overhead items including utilities, property taxes, security services, and other corporate headquarers expenses - There are no allocated costs between Avista and its subsidiares. k.All other allocated expenses - There are no allocated costs between A vista and its subsidiares. On a regular basis, general office employees of A vista Corporation spend time on corporate service support, such as accounting, federal income tax filing, planing, graphic serces, etc. for subsidiares. Their time is charged to suspense accounts (Defered Debit 186), loaded for benefits and then established as a receivable (Account 146) when biled to the subsidiar. If other resources are expended during the course of ths work such as travel or consulting servces, these costs are also charged to suspense accounts and biled to the subsidiar. . . . All corporate services provided, and costs incured, are direct biled to subsidiares at cost. No additional margin or profit is included and no assets are allocated. Suspense and captue of A vista Corporation employee costs, which are then biled back to the subsidiar at cost, serve to reduce the utility expenses. Such transactions can be generally categorized as corporate support. Specific examples include labor, benefits, postage, supplies, copier and graphic servces, legal, travel, lodging, and food. . . . A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO A VU-E-08-01 / A VU-G-08-01 IPUC Production Request Staff-OIl DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/03/08 Elizabeth Andrews Patrck Ehrbar State & Federal Reg. (509) 495-8620 REQUEST: Provide a summar of all envionmental cleanup costs for the years 2003-2007. Please show all account numbers and the amount booked to each sub account. RESPONSE: Please see Staff_PR_011-Attachment A, which includes pages 100-101 from Avista's December 31, 2007 Form 10-K, "Notes to Financial Statements - Note 25 - Commitments and Contingencies." Described on this attachment are the following current environmental remediation issues impacting Avista Corp: *Spokane River - All expenses charged to non-utility. *Northeast Combustion Turbine Site - 2005 diesel fuel spil which occured at the Company's Northeast CT generating facility. The Company established a reserve in FERC Account 253130 - Other Defered Credits of $1,100,161 in 2005. Ths was made up of $1,033,332 of insurance settlement plus $66,829 expensed to FERC Account 552000 in 2005 and 2006. The Company has incured costs of $964,620 though December 31, 2007. The ending reserve balance at December 31,2007 was $135,541. *Harbor Oil Inc. Site - As stated in Attachment A, A vista was named a Potentially Responsible Pary (pRP) for the cleanup of Harbor Oil site, in Portland Oregon. EPA issued an Administrative Order on Consent (AOC) to conduct a remediation investigation/feasibilty study (RS). The Company incured costs of $20,577 in 2006 and $86,361 in 2007. These costs were recorded in FERC Account 590000. In addition, the Company incured remediation costs durng this timeframe for the Hamilton Street Bridge Site. In Januar 1999, the Company received notice from the State of Washington's Deparent of Ecology that it had been designated as a potentially liable pary steming from the Company's past ownership of the property. Avista recorded a resere for these costs in 2001. The cleanup was completed in late-2005. The Company wil perform periodic ground water sampling and reporting for 5 years. The costs to perform this sampling are not material and are being expensed when incured. . . . Staff PR OIl-Attachment A Page 1 of2 A VISTA CORPORATION Avista Corp. an the state of Monta have recived a consent decee from the Monta State Cour adopting the term of the settlement, an the settement was approved by the Lad Board. The Company received approval from the WUC and the IPUC to defer any lease payments as a regulatory asset. The Company believes tht such costs will be recvered in futue rates based on historical recovery of simlar costs. Colstrp Generating Project Complaint In May 2003, various pares (all of which are residents or businesses of Colstrp, Monta) filed a consolidate complaint against the owners of the Colstrp Generating Project (Colstrip) in Monta District Cour Avista Corp. own a 15 percent interest in Units 3 & 4 of Colstrip. The plaintis allege damges to buildings as a result of rising groun wate, as well as damages frm contamite waters leang from the lakes and ponds of Colstrp. The plaitiffs ar seeking punitive damges, an order by the cour to remove the lakes and ponds and the forfeitu of all profits eared from the generation of Colstrip. The owners of Colstrip have underten certin groundwater investigation and remediation measures to address groundwate containation. These meures include improvements to the lakes and ponds of Colstrip. In March 2007, a group of ranchers fied a consolidate complaint againt the ownrs of Colstrip in Monta District Cour. The plaintiffs allege damges to livestock, lan and water from containte waters leang from the waste water pond of Colstrip. The plainiffs are seeking unpeified puntive daages. The complaints were consolidated and a trial date is scheduled for June 2, 2008. The Company intend to contiue to work with the other owners of Colstrip in defense of this consolidate complaint Because the resolution of this consolidate complaint remain uncertn, legal counel cant express an opinon on the extent, if any, of the Company's liabilty. However, based on inormation curently known to the Company's magement, the Company does not expet ths consolidate complaint will have a material adverse effect on its fiial condition, results of operations or cash flows. Cols Royalt Claim Western Energy Company (WCO) supplies coal to the owners of Colstrp Units 3 & 4 under a Coal Supply Agrment and a Tranporttion Agreement. Avista Corp. own a 15 percent interest in Colstrp Units 3 & 4. The Minrals Magement Service (MMS) of the United States Deent of the Interior issued orders to WECO to pay additional royalties concernng coal delivere to Colstrip Units 3 & 4 via the conveyor belt. The owners of Colstrip Units 3 & 4 tae delivery of the coal at the beginning of the conveyor belt. The orders assert that additional royalties are owe to MMS as a result of WECO not paying royalties in connection with revenue received by WEO from the owners of Colstrip Units 3 & 4 under the Tranporttion Agreement during the period Octobe i, 1991 though Deember 31, 200. WEO's appeal to the MM for the peiod thugh 2001 wa substatially denied in March 2005; WECO appeled the orders peining to the period up to 2001 to the Board of Lad Appeals of the U.S. Deparent of the Interior, which appeal was denied on Septembe 12, 2007. WECO also filed an appel with the MM peinng to the peiod from 2002 to 200. The enti appe process could tae several yeas to resolve. The owner of Colstrip Units 3 & 4 are monitoring the appe proces between WECO and MMS. WEO has indicated to the owner of Colstrp Units 3 & 4 tht if WEO is unuccessful in the appal process, WECO will seek reimbursement of any royalty payments by passing these costs though the Coal Supply Agrment. The owners of Colstrip Units 3 & 4 advised WECO that their position would be tht thes claim are not allowable costs per th Coal Supply Agreement nor the Tranporttion Agreement in the event the owns of Colstrp Units 3 & 4 we invoiced for these claims. Presumably, royalty an ta demas for periods of tie afr the year in dispute and futue yeas wil be determined by the outcome of the pending proeeings. Because the reolution of this issue remain uncertin, legal counel caot express an opinion on the extent, if any, of the Company's liabilty. Based on inormtion curently known to the Company's magement, the Company doe not expet that this issue will have a material adverse effect on its finacial condition, results of operations or cash flows. However, the Company would most likely seek recovery, though the rate mang proess, of any amounts paid. )l Spokane River The Company entered into a settement with the state of Washingtn's Deparent of Ecology (DE) an Kaiser Alumum & Chemical Corpration (Kaiser) relating to the remeiation of a containated site on the Spokae. River. The Company's involvement with this contate site relates to its previous ownership of a watewater treatment plant though Avista Development. Kaiser paid the Company approximately 50 percent of the estited tota costs. Under the direction of the Company, work under the Cleaup Action Plan was substatially complete in 2007. 100 . . . Staff_PR_01l-Attachment A Page 2 of2 ,) A VISTA CORPORATION Northeast Combustin Turbine Site In Augut 2005. a diesel fuel spil ocured at the Company's Norteat Combustion Turbine generating facilty (Norteast CT) locate in Spokane. Washingtn. The Norteat CT site ha fuel storage facilties tht were leaed to Co-op Supply. Inc.. an affliate of Cenex Cooperative (Co-op). The Company imediately commenced remediation effort, including the removal of containate soil and the relate fuel storage facilties. The Company acced the estimate cleanup costs durng 2005. which was not material to the Company's consolidate fmancial condition or results of operations. Thugh meiation the Company recovered a substatial porton of the cleaup costs from Co-op and an engineering fin in the four quar of 200. The Company's estimate of its liabilty could change in future periods. Based on inormation curently known to the Company's mangement, the Company does not believe that such a change would be material to its financial condition, results of opeations or cash flows. ~ Harbor Oil Inc. Site A vista Corp. used Harbor Oil Inc. (Hbor Oil) for the recycling of wate oil an non-PC transforr oil in the late 1980s and ealy 1990s. In June 2005, the Envionmental Protetion Agency (EA) Region 10 provided notification to Avista Corp., as a customer of Habor Oil, tht the EPA had determined that haardous substaces were releaed at the Harr Oil site in Portland, Oregon and that A vista Corp. may be liable for investigation and cleaup of the site under the Comprehensive Environment Response, Compensation, and Liabilty Act, commonly referred to as the federal "Superfnd",Iaw. The initial indication frm the EPA is that the site may be contaminate with PCBs, petrleum hydrocarbons, chlorinate solvents and heavy metals. Six potentially responsible pares, including Avista Corp., signed an Administrative Order on Consent with the EPA on May 31, 2007 to conduct a remedial investigation and feasibilty study (R). The total cost of the RI is estimate to be $0.6 millon and wil tae approximately 2 1/2 yeas to complete. The actul cleaup, if any, wil not occur unti the RIS is complete. Bas on the review of its records relate to Harbor Oil, the Company does not believe it is a major contributor to this potential environmental containation based on the relative volume of wate oil delivered to the Harbor Oil site. However, there is curently not enough informtion to allow the Company to assess the probabilty or amount of a liabilty, if any, being incured. As such. it is not possible to mae an estite of any liabilty at this time. Lae Coeur d Alne In July 1998. the Unite States District Cour for the District of Idaho issued its finding tht the Coeur d Alene Tribe of Idao (Tribe) own. among other things, portons of the be and bank of Lae Coeur d'Alene (Le) lying within the curent boundaies of the Coeur d'Alene Reseration. Ths action had ben brought by the United States on behalf of the Tribe againt the state of Idaho. The Company was not a par to this action. The Unite State Distrct Cour decision was affined by the Ninth Ciruit. The Unite State Supreme Cour affirmed this decision in June 200 1. This ownership decision will result in. among other things, the Company being liable to the Tribe for compensation for the use of reservation lands uner Section 10( e) of the Federal Power Act. The Company's Post Falls Hydroelectric Generatig Station (post Falls), a facilty constrcte in 190 with anual generation of 10 aM. utilzes a dam on the Spokae River downtr of the Lae which controls the water level in the Lae for portons of the yea (including portions of the lakebe owned by the Tribe). The Company ha other hydrelectric facilties on the Spokae River downtream of Post Falls. but these facilties do not afect the water level in the Lae. The Company and the Tribe are engaged in discussions relate to past and futue compensation (which may include interest) for use of the portons of the be and ban of the Lae. which are owned by the Tribe. H the paries canot agree on the amount of compensation. the matter could result in litigation. The Company canot preict the amunt of compensation that it will ultimately payor the term of such payment. The Company intends to seek rèvery, though the rate makg process. of any amunts paid. Spokane River ReUcensing The Company own and opeates six hydroelectric plants on the Spokae River. an five of these (Lng Lae, Nine Mile, Upper Falls. Monroe Street and Post Falls, which have a total present capabilty of 155.7 MW are uner one FEC license and are referr to as the Spokae River Project. The sixth, Litte Falls, is operate unr separate Congressional authority and is not licensed by the FERC. Since th FEC wa unble to issue new license orders prior to the Augut 1, 2007 expiration of the curent license, an annual license was issued, in effect extending the curent license and its conditions until Augut 1, 2008. The Company has no reaon to believe that Spokane River Project operations will be interrpted in any maer relative to the timing of the FEC's actions. The Company filed a Notice of Intent to Relicense in July 2002. The form consultation process involving planng and inormtion gathering with staeholder groups has ben underwy since tht time. The Company filed its new license applications with the FEC in July 2005. The Company requested the FEC to consider a license for Post Falls, which has a present capabilty of i 8 MW. tht is separate from the other four hydroelectrc plants beause Post Falls presents more complex issues that may take longer to resolve than those relating to the rest of the 101 . . . AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO AVU-E-08-01 / AVU-G-08-0l IPUC Production Request Staff-023 REQUEST: DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/0312008 Malyn Malquist Elizabeth Andrews State & Federal Reg. (509) 495-8601 Please provide copies of the narative monthly, quarerly and anual comparson of operating and capital budget to actual expenditures for 2005 to date. Please include within your response any narative explanations for budget varations. Ths should include, but not be limited to, written operating and capital budget varance reports and explanations used by Company officers and managers to monitor and control budgets under their areas of responsibility. RESPONSE: Please see Avista's response 023C, which contains TRAE SECRET, PROPRIETARY or CONFIENTIA information and exempt from public view and is separately filed under IDAP A 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code, and pursuant to the Protective Agreement between Avista and IPUC Staff dated March 13,2008. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-0l / A VU-G-08-01 IPUC Production Request Staff-026 DATE PREPARD:WISS: RESPONDER: DEPARTMNT: TELEPHONE: OS/29/2008 Malyn Malquist Adam Munson Finance (509) 495-2471 Please provide a schedule of prepaid items for 2007 showing amounts posted, vendor names, explanations and accounts posted. Please include within your response any significant changes to prepaid items (by account) occurng in, or planed for 2008. RESPONSE: Please see the attached worksheet (StafCPR_026-Attachment A.xls) which is a schedule of our prepaid items for 2007. We do not anticipate any significant changes in 2008 to these accounts. Unart Unor amun Exp Accun Chge Bal Prd Acounl Venr Puse 1211106 (Accun from POET 2007 Exp 2007 Payment 1211107.165100 US Aviaton Insance Group AlUua prepd insce 16,905 ool.924oo.CD.AA 16,905 165100 US Aviaton Inrace Grup Annual prd inurce 9,307 ool.925100.CD.A 9,307 165100 Simplified Commercial Prop AlUua prepaid insce 992,840 001.924oo.CD.AA 1,100,604 1,098,245 990,481 165100 Feder-Commal Cre Covere Annl prd in 10,792 ool.9240oo.CD.AA 25,375 17,500 2,917 165100 Gr Amerca-Exce Cre Covee AlUuai prepd ins 2,333 ool.924oo.CD.A 5,483 3,780 630 165100 AEGIS- Exce Uability Covere AlUai preaid ince ool.9251oo.CD.A 885,860 885,860 165100 McGff Seiels & Willam E&O Covere Aial praid in ool.9251oo.CD.AA 1,437,763 1,437,763 165100 Enegy ins Mutu Ann praid in 001.9251oo.CD.AA 696,000 696,000 165100 AEGIS- Fiduciar Liailty AlUua prepaid ins 84,933 001.9251oo.CD.AA 148,952 153,646 89,627 165100 Twn City Fir In CoExce 0&0 Covere AlUual prepd in 140,700 001.9251oo.CD.A 140,700 165100 ElM-Exce Uab Cover Anual prd ince 8,999 ool.9251oo.CD.A 8,999 165100 ElM-Annual premiu Ann prd in 395,509 ool.9251oo.CD.A 395,509 165100 EIS Exce liaity Annua praid insra 824,895 001.925100.CD.AA 824,895 165100 ElM Exce 0&0 AlUai prepai iii 299,501 ool.925100.CD.A 299,501 165100 Capita Spe Ins CorpExce 0&0 Coverge AlUual prepd insrace 30,150 ool.925100.CD.AA 30,150 165100 Zurich Amer In Co Exce 0&0 Covere Anua praid in 99,160 001.925100.CD.A 99,160 165100 XL Specalty In Co Exce 0&0 Covere Ai praid in 201,000 001.9251oo.CD.AA 201,00 165100 AIS LID 0&0 Liabilty AlUua prd in 865,786 001.9251oo.CD.A 865,786 165100 Liber Mubial AlUuai prepd inra ool.925200.CD.AA 364,899 364,899Ie398289945372254657692 4103277 165150 NetorkGei Ann prepaid lic fe ool.186551.CD.AA 2,226 2,226 165150 Produc Supprt Solutions AlUal preid lice fee 42,793 001.9352oo.CD.AA 42,792 165150 Microsoft Prier Support AlUual prepd lice fe 4,428 ool.935200.CD.AA 60,088 55,660 165150 Sniff Suprt Annual prd lice fee 2,638 001.935200.CD.AA 2,638 165150 Netork Gene AlUai prepd licee fe 001.9352oo.CD.AA 58,920 61,589 2,669 165150 COW Annl prepaid lice fee ool.9352oo.CD.AA 25,745 77234 51,490 165150 NEe Unified Solutions Annual praid lice fee 12,293 001.9353oo.CD.AA.165,808 167,471 13,956 165150 Netork Applian Annua preid lic fee 99,061 ool.9353oo.CD.AA.60,521 98,001 136,540 165150 IBM AlUai prd lice fee ool.9353oo.CD.AA.34,432 34,432 165150 ilrni AlUua prepd lice fe 52,463 001.9353oo.CD.A.9.035 43,427 165150 POS AlUai prepaid lice fee 12,801 001.9352oo.cD.AA 52,394 52,790 13,197 165150 SRPRenewai Annual prepaid licee fe 45,581 001.9352oo.CD.AA 45,581 165150 Nexus AlUai prd lice fe 001.9352oo.CD.A 4,525 54,300 49,775 165150 ESRI AlUua prepaid licee fe 195,120 ool.9352oo.CD.A 195,120 165150 COW-Oirec Anual praid licee fee 16,024 001.9352oo.CD.A 43,749 83,176 55,450 165150 Orle Ai prep lic fe 17,263 001.9352oo.CD.A 427,013 422,508 168,759 165150 SNL - Ene Main Ann prd lice fee 34,00 001.935200.CD.A 34,000 38,00 38,000 165150 AurraEMMR Ann prd lice fe 16,583 ool.935200.CD.A 16,583 165150 Maximus1n Anual preaid lice fee 6,300 ool.9352oo.CD.AA 37,800 37,800 6,300 165150 New Ener Ann prepd lice fee 2,948 001.9352oo.CD.A 36,372 36,462 3,039 165150 Cogoos Anua prd lice fe ool.935200.CD.AA 26,135 26,135 165150 Inlle Ann pr lice fe 26,332 ool.9352oo.CO.A 26,332 165150 OSlsft AlUua praid licee fee ool.9352oo.CD.AA 4,546 S4,555.165150 Wonderar Ann prd lice fe 25,590 ool.9352oo.CD.AA 25,590 165150 Veniy - Advante Softar Annual prepd lice fe 001.9352oo.CD.AA 89,026 89,026 165150 PCE AlUua prepd lice fee 18,750 ool.935200.CD.A 45,000 45,000 18,750 165150 MOSI Mobile Oar Solutions AlUua praid lice fee ool.935200.CD.AA 83,812 83,812 165150 EPIS,In AlUua praid lice fee ool.9352oo.CD.AA 78,375 104,500 26,125 165150 Itroni Annua praid lice fe 8,744 001.9353oo.CD.AA.8,744 165150 COW Annual prepd lice fee 1,465 001.9353oo.CD.AA.1,465 165150 COW Annua prepd lice fe 2,975 ool.107oo.zzZZ 2,975 165150 COW Anua prai lice fee 13,322 ool.923oo.CD.A 14,763 37,627 36,186 165150 OATI Annual praid lice fee 23,746 001.56121O.CD.AA 23,746 Total 837220 i 696826 1662.305 752688 165170 Colubia Grd Funing Agren ool.56Ooo.ED.A 248,640 275,220 165,760 165180 Varous Prymen CS Suply Ch 001.903oo.CD.AA 85,319 28,440 56,879 165200 US Post Seice Pred poste met 85,464 00/.2322OO.ZZ.ZZ 2,027,469 2,058,737 103,223 165210 City ofRJdr Prepyments- RJdr Moo Dvlpt 00/.549oo.ED.AN 155,240 155,240 165230 Praymen Mosw Ofce Sae 27,432 001.930200.CD.1D 4,910 22,522 165240 Prepymts- BPA Tra Resaton 35,467 00/.557000.ED.A 35,467 165250 PPLMont Colsp Prd Aset 211,410 001.232630.ZZ.ZZ 211,410 165260 Spoka Tnbe PrymSpoka Tnbe 00/.2322OO.ZZZZ 685,876 685,876 165270 Potl Pryments- Potlath Ro 00/.557/60.ED.A 175,200 175,200 165320 Gas hnbalan - A vita LOC (281,123)00/.804oo0.(VarlOl)513,238 232,115 165340 Gas hnbalan Cote Spri (146,540)00/.5476/0.ED.A (38,434)(184,974) 165350 Gas Imalce Rath 80,696 ool.5473/0.ED.AN (86,103)(5,434) 165360 Gas Imbaan Nortt Ct (27,802)00/.5472J3.ED.AN 30,951 3,150 165370 Gas hnbal Boulder Park 13,445 ool.5472/6.ED.A 14,415 27,860 165380 Gas hnbaance Kete Falls Ct (4,555)00/.54721 J.ED.AN 24,166 19,611 165390 Gas Imbal Kee Falls GS (7,475)001.50/120.ED.AN (8,728)(16,203).165545 Puget Sound Energy Pryments- IP Exion prje 00/.232/30.ZZ.zz 1,185,831 1,185,831 165550 Wilmingtn Trust Pryments- Wilmington Tru 608,378 ool.4265oo.zzzz 88,125 520,253 Staff_PR_026-Attaehment A.xls Page 1 of I . . . AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: IDAHO CASE NO: A VU-E-08-0l / A VU-G-08-01 REQUESTER: IPUCTYE: Production Request REQUEST NO.: Staff-027 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: REQUEST: 05/30/2008 Liz Andrews Theresa Melvin State & Federal Regulation (509) 495-8165 For each officer of the Company, please provide the total dollar amount of remuneration for 2007, 2008 and 2009 included in the rate case with the amounts separated by year, salar, incentive pay, options, benefits and other. For each offcer, please also provide the percentages of his or her total remuneration that is allocated to other subsidiares along with the basis for that allocation. RESPONSE: Please see Avista's response 027C, which contains TRAE SECRET, PROPRIETARY or CONfIDENTIA information and exempt from public view and is separately fied under IDAP A 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code, and pursuant to the Protective Agreement between Avista and IPUC Staff dated March 13,2008. . . . A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: CASE NO: REQUESTER: TYPE: REQUEST NO.: IDAHO A VU-E-08-01 / A VU-G-08-01 IPUC Production Request Staff -035 DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: REQUEST: 06/02/08 Don Kopczynsi Amanda Reinhardt Customer Servce (509) 495-7941 Please provide any studies or tracking data compiled by A vista showing the effect of: 1) energy efficiency programs 2) Cares Program; and/or 3) Project Share Program in alleviating the burden of higher rates on low and fixed income customers. RESPONSE: . Although Avista has not perormed any studies specific to the burden of higher rates on low and fixed income customers, there are varous measures of tracking in place to evaluate the effects of the Cares, Energy Effciency, and Project Share programs. 1) Energy Efficiency On a monthly basis, A vista tracks energy effciency measures implemented for our low and fixed income customers as well as energy savigs generated by these efficiency upgrades. Over the four year period of 2004-2007, energy efficiency measures installed in the residences of low and fixed income customers resulted in savings of 7,612,463 kWh and 231,697 thers. Ofthese amounts, about 30% is attbutable to Idaho. Applying the curent residential electrc and natual gas rates, this would result in an estimated savings of$223,145 for Idaho low and fixed income customers. 2) Cares In March 2006, Avista began tracking the dollars applied to CARS accounts from assistace agencies. The Cares program assists customers in finding assistance they may not be able to identify or contact on their own. The total agency payments for assistance in 2007, across Avista serce terrtory (ID, OR, and WA) was $1,020,301.89. 3) Project Share Project Share is not a low, or fixed income program. The program is a grant based program that is based on need, not income leveL. A vista has not tracked any data or done any studies on ho:w Project Share might alleviate the burden of higher rates on low and fixed income customers. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO AVU-E-08-01 / AVU-G-08-0l IPUC Production Request Staff -046 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: OS/29/08 Don Kopczynski Chrstopher George Customer Serce (509) 495..7911 In accordance with UCRR 304.02, when A vista makes a diligent attempt to contact the customer and Avista's automated system connects with the customer's telephone, what happens if a child answers the phone? Is there any verification that an adult answered the phone? RESPONSE: When the automated system connects with the customer's telephone and an answerng machine or a person picks up the phone, the technology within the Company's IVR system trggers the playback of the following message to the customer: "This is an important message from Avista Utilities, Please call Avista Utilties at 1-888-427-3403 to avoid collection activity on account number (account number) " There is no verification that an adult answered the phone, only that it was answered. Avista's system wil attempt to reach the customer 3 more times that day if the first attempt was not successfuL. Because A vista canot verfy the person that picked up the phone is an adult or even the customer of record, the above message does not speak proprietar information about the account. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-01 / AVU-G-08-0l IPUC Production Request Staff -050 DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/08 Don Kopczynki Amanda Reinhardt Customer Serce (509) 495-7941 Does A vista evaluate the effectiveness of collecting deposits? If not, why not? If so, what kind of information is tracked? If available, please provide a copy of A vista's most recent deposit policy effectiveness study. RESPONSE: The last available effectiveness study was completed in 2005 for ID, WA, and OR. The results showed that with a focus on deposits, the percentage of accounts with a deposit increased from 3% in 1999 to 6% in 2005. This focus also resulted in an increase number of deposits being applied on accounts at the time of wrte off; the percentage increased from 43% in 2000 to 55% in 2004. Please see Staff PR 050-Attchment A.xls. In addition, please see the Company's response to Production Request 051 which details the positive impact deposits have at reducing .wrte offs for residential and non-residential accounts in Idaho. ..õ...CDC) COa. '#~'#;;~0 0 0C'CO C'N U'""""U'U'U'..0000..:; CD- CO C'm N m 0 E (f ~"m U'C'C''x..co I"CD ..en X 0)ci ..ci C\e =i et........0.:;- 0...c co en 0 CD..CD CD ..E ~ ..::-ïj).c.en tT 'C 0 0 CD ~;:0.co 0 ::..CD 1tT-::'0 CD ïj) CD ..0 0 co 0U'~-0.'0 CD 01.~ïj)CD CD :: ~0 '0 0.co 0:0.co ã).!a. CD .!:;lIl"'0 CD co::en co t:CD 0 C'""CD co co co '0 - CU CD ""U'..I"'0 .!.!0 iO en N N co C'm -c ~C"ir cD cD co en 0):;c ln .!-0)0 C' ~C'..m co m en c 0)N 0 CD co U'-::..c .5: ln C"~~C"~c 0 CD 't 0 ::0 c == Q.0 0 'C ~ 0 co c ;:~ CD 0 c co ~C co CD Ol ~CDC0...co 0 CD 0 -0 0...-co ~co~~~~~0 ::.!.!"- 0 -CI..-0 N m m U'co ::..en en ~CD co CD N 0 0 -....ïj)CDNl"N U'C\..?J EC\C\ci 0 0 "-..N (0 0.0 0 N N N N N ?J CD -.. (Y iñ '0 en 0::Cl~0 c 0 Q.0 0 .§C N CD0Cen.!"-::-0c)0 ..t:0 ..N C'""0)::.E 0 ~0 0 0 0 0 0)co ~0 0 0 0 0 ..'0 CD Cl N N N N N C 0 .!0 ~l-I-~~ i'i'i'i'i.. . . . AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO AVU-E-08-0l / AVU-G-08-0l IPUC Production Request Staff -064 DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/03/08 Don Kopczynski Betsy Townsend Customer Serice (509) 495-8441 REQUEST: Please provide a list of problems (as they relate to providing good customer servce) encountered as a result of outsourcing biling and print operations. Describe each problem and how long it took to fix the problem. RESPONSE: . Bil inserts - Insert printing was previously done by Xerox in Avista's mai office in Spokane or by local printers. Some bil insers can be planed and created ahead of time, but there are occasions when bil insers need to be wrtten, printed and stuffed in envelopes alost imediately. To solve the issue of gettg the inserts to Napa, CA in a timely maner, the Company began a bidding process to select a print company. A vista selected a local company to print all inserts except for emergency, quick tu-around inserts. By using one printer, they are trained and familiar with the important specifications needed to ship and store pallets of inserts to Regulus' Napa mail plant. For the emergency, quick tu-around inserts, the Company is having Regulus print them, which allows them to mail out inserts when time is of the essence. Ths issue was resolved in late 2007 before implementation of the new biling process. . Avista's old bil design - The decision to outsource the Company's bil print and mailing operation led to a redesign of Avista's bil, letters and notice images. Ths was largely because Avista's old bil image used paper with a non-standard perforation line. The bil redesign also allowed A vista to star using standard-sized outbound and inbound mailing envelopes for its customer documents. Standardized paper and envelopes are sold by all paper vendors, thus increasing the market from which A vista could order its paper/envelopes. The bil, notice and letter redesign process took over 7 months. Durng those months, A vista worked with bil design staff at Regulus to look at best practices. Avista also solicited bil design ideas from Customer Serce employees and Commission Staff, to create a new bil design that met the needs of our customers as well as each state's requirements. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION IDAHO A VU-E-08-0l / A VU-G-08-0l IPUC Production Request Staff-070 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/0312008 Malyn Malquist Elizabeth Andrews State & Federal Reg. (509) 495-8601 Please provide the Capital Budget Group Year to Date (Y) Actuals Capital Budget spreadsheets for 2005, 2006, 2007 and 2008 to date with a printout provided and a CD in Excel format with formulas activated. Staff has already received the April 2008 YT Actuals spreadsheet. Please consider this an ongoing request and provide these spreadsheets monthy for the remainder of the case. RESPONSE: Please see A vista's response 070C, which contains TRAE SECRET, PROPRIETARY or CONFIDENTIAL information and exempt from public view and is separately filed under IDAP A 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code, and pursuant to the Protective Agreement between Avista and IPUC Staff dated March 13,2008. . . . A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO AVU-E-08-01 / AVU-G-08-0l IPUC Production Request Staff-074 REQUEST: DATE PREPARD:WISS: RESPONDER: DEPARTMNT: TELEPHONE: 06/03/08 Malyn Malquist Jeane Pluth State & Federal Reg. (509) 495-2204 Please provide all materals prepared and presented regarding the purchase decision of the Rathdru CT project. Please include withn your response the purchase documents and how the purchase was recorded by the Company. In addition to printouts, please also provide any materals in Excel format on CD with formulas activated. RESPONSE: Staff_PR_074-Attachment A, pages 1-5 consist of the information presented to the Avista Finance Committee on May 12,2005. Staff_PR_074-Attachmeiit A, pages 6-12 consist of the underlying analysis that was performed by Avista that demonstrates that the termination of the lease is in the best interests of Avista's ratepayers. Costs under the lease are higher than the interest costs for Company issued debt securties. This is due primarly to the lease having a charge of 25 basis points for administration and 60 basis points for the equity retu component of the lease. Hence, a cost savigs exists and ratepayers benefit from the discontinuance of the lease. See also Avista's response number Staff-075. Please see Avista's CONFIDENTIAL response number StafCPR_074C for: Staff PR 074C-CONFIDENTIA Attachment B - an Excerpt of Minutes of a Meeting ofthe Board of Directors Held on May 13,2005 that deals with the Rathdrum CT. Staff PR 074C-CONFIDENTIA Attachment C - Purchase Document. StafCPR 074- Page 1 of12 Attachment A. f!.ia ~5.".~ r; ¡ ~ ~ . ~ ~ C)C--.. CI CI :E CI CI ==-- E Eoo CI(.c asc-- LL C)C--Uc asc--u. CDtn as CD.. CDC--.c..::I-" CDC--.c Eoo E::..".... asa: I.ooN 11N~ ~ :æ . . . . . ~ . .- ~ l I l V ' S r A . Co r p . 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(h I 10 . 3 7 6 To t a i . 1 5 . 8 1 5 5 6 . 2 6 0 1 5 . 1 1 5 3 7 . 2 1 2 1 1 . 4 6 8 ) 5 6 . 2 6 0 1 4 . 2 2 7 1 8 , 0 0 8 P. r i o d - - - - - - - - - - - - . . _ _ . . _ _ _ _ _ _ _ . _ . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . . . . . . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . _ - - - - - . . - - - - - - - 0 . . _ . . _ . _ - - - - - - Eq i t y Re t u r n (.. i 17 . 4 6 8 . 20 0 5 1 ' f : , : . , t i ; i ~ i ; l ' ¿ j j : ' 56 . 2 6 0 . 41 . 7 9 2 06 5 86 5 6. , 76 47 , 7 5 1 06 5 48 . 2 7 2 51 8 :a 0 0 6 i 47 . 7 5 1 4. 1 1 2 5 3,4 3 2 2. 5 9 6 3. . 43 , 5 9 9 3.8 G O 45 . 6 1 5 1. 9 5 9 i0 0 7 3 U,S ' 9 8.& 8 5 J, U G i, 5 U i8 7 39 , 4 5 i 3, 8 6 0 41 , 5 2 5 1. 1 8 1 :Z 0 0 8 4 39 . 4 5 2 12 , 5 4 5 3,3 9 5 i, 5 9 6 i7 9 35 , 3 U 3, 8 6 0 37 , 3 8 i 1. 6 0 4 20 0 9 5 35 . 3 1 2 16 . 4 0 5 3. 0 i 3 2, 5 9 5 14 9 31 . 3 0 3 3. 8 6 0 33 . 3 0 8 1. 4 2 9 20 1 0 6 31 , 3 0 3 iO , 3 6 5 36 3 3, 5 0 6 (7 8 i 1 28 . : 1 2 5 3, 8 5 0 39 . 7 6 4 1, 2 7 7 20 1 1 7 28 . i 2 5 H, U 5 U4 i. 5 9 6 (8 3 4 1 25 , 1 9 9 3.8 6 0 26 , 7 i i 1.1 4 ' iO i i 8 i5 , l 9 9 37 , 9 8 5 U2 i, 5 U 18 3 5 1 22 , 1 7 3 3,8 6 0 i3 , 6 8 6 1, 0 1 6 20 1 3 9 ii , 1 7 3 31 . 8 4 5 UO i, 5 U 18 3 5 1 19 , 1 4 9 3,8 5 0 iO , 6 6 1 88 6 20 1 4 10 19 , 1 4 9 35 . 7 0 5 i0 9 2,5 9 ' (8 3 6 ) 1& . 1 2 4 3. 8 & 0 11 , 6 3 & 75 1 i0 1 5 11 16 , U 4 39 , 5 6 5 i0 4 2, 5 9 6 (8 3 7 ) 13 , 1 0 2 3,8 6 0 14 . 6 1 3 07 ZO l ' U 13 , 1 0 2 43 , n 5 17 6 2. 5 9 6 (8 4 7 1 10 , 0 1 9 3.8 6 0 11 . 5 9 5 ., 7 20 1 7 13 10 , 0 8 ' n, n 5 15 0 :1 . 5 9 6 18 5 1 1 7,0 8 5 3.8 6 0 8, 5 8 7 36 8 i0 1 8 14 1,0 8 5 51 . 1 4 5 2 i. 5 U 19 0 1 1 4.1 3 3 3,8 & 0 5, 6 0 9 Hl 20 1 9 15 4., 1 3 3 55 , 0 0 5 i 1, 4 . 6 2 (5 1 1 1 78 4 3,8 6 0 2. 4 5 8 10 5 20 2 0 16 78 4 56 , 2 6 0 i 1.3 5 0 (4 7 i l (0 1 l, i 5 6 39 3 17 17 (0 ) 56 , 2 6 0 1 0 0 (0 1 0 (0 ) 10 1 8. 7 " 8. 2 0 ' 11 , l 6 l 65 5 2. 4 1 0 2, 2 5 5 2. 0 3 0 1. 8 0 9 1, 6 1 6 1. 4 5 0 1. 2 8 6 1, 1 1 2 95 8 79 3 63 0 46 6 30 5 13 3n 10 1 . 4, i " i . 7 " 0. 7 ' " 0 . 7 4 ' 4. 6 9 ' 4 . 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' ~ : , ~ ~ ; ; . ~ : ( ; ž 57 0 18 1, 2 8 4 18 2 (0 ) 0 10 1 (0 ) 0 CO ) CO l CO l "t u : t, P t ~ : : .. I " t N : ; ~I O .. - . N ~ i ~..l å ~ . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-01 / A VU-G-08-01 IPUC Production Request Staf-075 DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/03/08 Malyn Malquist Jeane Pluth State & Federal Reg. (509) 495-2204 Please provide a report, printout and an electronic version on CD in Excel format with formulas activated, for ER #4134, Rathdru CT Purchase, which includes at least the following: the project number, expenditue tye, vendor descrption, transaction descrption, transaction amount, date posted, document/transaction number, and total amount posted. RESPONSE: Please see "Staff PR 075-Attachment A.xls". . AV I S T A U T I L I T I E S . . Pr o j e c t T r a n s a c t i o n s T a s k N u m b e r : 4 . 1 1 : . , A c c o u n t i n g P e n o d E n d D a t e : Y e a r : 2 0 0 5 ' ' T r a n s a t i o n D a t a i s a v a i l a b l e b e g i n n i n g J a n u a r y 2 0 0 5 , Er Bi Pr o j e c t Pr o j e c t D e s c Ac c o u n t i n g Av a J e t Ex p e n d i t u r e Ex p e n d i t u r e Ex p e n d i t u r e T y p e Fe r c A c c t Ju n s d i c t i o n Pr o j e c t Re p o r t Se r v i c e Tr a n s a c t i o n D e s c Co s t Nu m b e r Pe n o d Ca t e ¡ ¡ o r v Or o a n i z a t i o n Nu m b e r Ca t e o o r v 41 3 4 NG 5 1 0 31 0 0 5 0 0 3 Pu r c h a s e R a t h d r u m C T 20 0 5 0 9 NS J 0 1 8 - R Vo u c h e r E0 7 88 5 M i s c e l l a n e o u s 10 7 0 0 0 AN 31 0 0 5 0 0 3 CA P ED Pu r c h a s e R a t h d r u m C T 1 1 8 6 , 6 7 0 , 0 0 41 3 4 NG 5 1 0 09 8 0 5 0 3 6 Pu r c h R a t h d r u m C T c o m m 20 0 5 0 9 NS J 0 1 8 - R Vo u c h e r E0 7 88 5 M i s c e l l a n e o u s 10 7 0 0 0 AN 09 8 0 5 0 3 6 CA P ED Pu r c h a s e R a t h d r u m C T C o m m 45 2 1 1 4 , 0 0 41 3 4 NG 5 1 0 31 0 0 5 0 0 4 Pu r c h a s e R a t h d r u m C T n r o d 20 0 5 0 9 NS J 0 1 8 - R Vo u c h e r E0 7 88 5 M i s c e l l a n e o u s 10 7 0 0 0 AN 31 0 0 5 0 0 4 CA P ED Pu r c h a s e R a t h d r u m C T o r o d 54 , 6 2 1 , 6 1 2 , 9 3 56 , 2 6 0 , 3 9 6 , 9 3 St a f C P R _ 0 7 5 - A l t c h m e n t A , x l s Pa g e 1 o f 1 . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-01 / A VU-G-08-01 IPUC Production Request Staff-080 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/03/08 Dave DeFelice Jeane Pluth State & Federal Reg. (509) 495-2204 Please provide all the expenses included within the case associated with the Company's maintenance/response to the failure of the 80-year old cables mentioned in Company witness DeFelice's Direct Testimony (page 16, lines 5 and 6). RESPONSE: The replaceent of the cables mentioned in DeFelice's testimony is 2008 capital costs that were included in Company Witness Ms. Andrew's Pro Forma Capital Additions Adjustment for 2008. These costs are being tracked with the replacement of the duct ban that rus from the Post Street Substation to the Upper Falls Generating Station (DeFelice Direct Testimony page 16, line 2 though 5.) The costs included in the case for this entire project is $640,000. Avista did not incur any operating/maintenance costs in 2007 for the failed cable. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-0l / A VU-G-08-0l IPUC Production Request Staff-08l DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/03/08 Dave DeFelice Jeane Pluth State & Federal Reg. (509) 495-2204 Please provide all the expenses included within the case associated with the Company's maintenance/response to the 2007 failure of the Mark 5 controller and low voltage bus duct mentioned in Company witness DeFelice's Direct Testimony (page 16, lines 25 through 28). RESPONSE: The replacement of the controller and bus duct mentioned in DeFelice's testimony is for an early- 2008 failure at the Rathdr Generating Station (DeFelice's testimony inadvertently described this failure as occurng in 2007,) The estimated capital costs of approximately $1.6 milion of this Rathdrm project were not included in Company Witness Ms. Andrew's Pro Forma Capital Additions Adjustment for 2008. However, ths critical project wil replace other capital projects that were included in the adjustment and wil be completed and in service during 2008. Avista did not incur any operating/maintenance costs in 2007 for the Rathdru failure. AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION.JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO A VU-E-08-01 / A VU-G-08-01 IPUC Production Request Staff-082 DATE PREPARD:WISS: RESPONDER: DEPARTMNT: TELEPHONE: 5/30/2008 Malyn Malquist Rich Stevens Risk Management (509) 495-4330 REQUEST: Please identify all insurance reimbursements received by the Company for plant destroyed by storm damage, fires and other damages if not already provided. Please also identify all insurance reimbursements received by the Company for any other items or events. Please include within your response how and where those reimbursements were recorded for 2007. For all the insurance reimbursements received in 2007 and 2008 to date, please provide the detailed accounting information, in an Excel spreadsheet format, including the FERC account number, Servce allocator, Jursdiction, period, GL Transaction ID, Sub-ledger Transaction ID, Source ID, Transaction Amount, Electrc Amount, Gas North Amount, Gas South Amount, Journal Name, Project Number, Task Number. Also provide the name of the vendor, voucher number, expenditue type, transaction descrption, and jursdictions where the transaction is allocated. Please provide a printout as well as an electronic copy of the Excel spreadsheet(s) with formulas activated. . RESPONSE: A vista received no insurance reimbursements in 2007 or to date in 2008 for plant destroyed by storm damage, fies and other damages. Avista received reimbursement for costs related to "In re Avista Corp Securities Litigation" as shown below. None of these costs were charged to utility servces or any regulatory jurisdiction. The account code for these reimbursed costs is 77703054;.1 86200-005-POI. . 2-1-07 3-19-07 4-26-07 5-15-07 6-4-07 7-30-07 8-31-07 10-2-07 12-17-07 2-14-08 4-10-08 4-10-08 5-14-08 5-14-08 5-23-08 $634,449.28 724,364.58 93,308.78 823,740.38 547,800.90 746,748.29 627,308.49 118,244.13 33,253.32 2,920.00 5,792.65 210.00 187.50 28,107.54 28,487.00 . . . AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO A VU-E-08-0l / A VU-G-08-0l IPUC Production Request Staff-083 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 5/30/2008 Malyn Malquist Rich Stevens Risk Management (509) 495-4330 REQUEST: Please identify all events for which insurance reimbursements are pending or considered. Please include within your response the curent status of these reimbursements. RESPONSE: Property Insurance: Insurance claims have been made for two transformer losses. These losses relate to a transformer within the Dry Creek substation (occurence date was December 6, 2006) and the Coyote Springs 2 general step-up transformer (occurence date was March 23,2007). The costs for repair (Dry Creek) or replacement (Coyote Springs) continue to accumulate, so the ultimate claim amounts are not yet fixed. In each case, insurance adjusting is in process but neither has been resolved at this time. In each case, Avista wil absorb the deductible before an insurance reimbursement is available. The Dry Creek deductible is $350,000 and the Coyote Springs deductible is $443,750. Avista's eligible costs to date have barely exceeded the Dry Creek deductible and have not yet reached the Coyote Springs deductible. Directors & Offcers Insurance: The claim for "In re A vista Corp Securties Litigation" is not yet closed, although with the claim settled, it is not expected to result in significant additional costs or insurance reimbursements from ths date forward. This claim has been reimbursed progressively since 2005 while the litigation and settlement activities continued. General Liability Insurance: Third pary claims that arse in the course of business may result in losses that exceed Avista's self-insured retention threshold. Avista's general liability self-insured retention has been $2 milion for several years; occurences that date back many years may involve insurance policies with lower thresholds. As signficant claims are identified, Avista places insurers on notice of potential claims to sustain Avista's rights for recovery in case an insurable level of cost materializes. In the vast majority of such cases, the claims do not ever reach an insurance reimbursement threshold. None of the currently open issues has reached a point where a specific insurance reimbursement has been claied. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-01 / A VU-G-08-0l IPUC Production Request Staff-084 DATE PREPARD:WISS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/08 Elizabeth Andrews Jeane Pluth State & Federal Reg. (509) 495-8620 Please provide the account transaction detail for FERC account 923, in an Excel spreadsheet format, including all sub accounts. Provide the name of the vendor, voucher number, expenditure type, transaction description, and jursdictions where the transaction is allocated. Please provide a print out as well as an electronic copy of the Excel spreadsheet with formulas activated. RESPONSE: Account transaction detail for FERC account 923 was made available to IPUC staff durg their site visit May 16-20. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-0l / A VU-G-08-0l IPUC Production Request Staff-085 DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/08 Elizabeth Andrews Jeane Pluth State & Federal Reg. (509) 495-8620 Please provide the account transaction detail for FERC account 930, in an Excel spreadsheet format, including all sub accounts. Provide the name of the vendor, voucher number, expenditure type, transaction description, and jursdictions that the transaction is spread to. Please provide a print out as well as an electronic copy of the Excel spreadsheet with formulas activated. RESPONSE: For FERC account 930, there are two sub accounts (930100 and 93020). Account transaction detail for FERC account 930200 was made available to IPUC staff during their site visit May 16-20. For 2007, all costs for account 930100 were directly assigned to Washington, and therefore no additional information was provided to staff for this account. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO AVU-E-08-0l / A VU-G-08-01 IPUC Production Request Staff-086 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/03/08 Malyn Malquist Patrick Ehrbar State & Federal Reg. (509) 495,.8620 Please provide copies of all reports on A vista by rating agencies and securities analysts for 2007 through 2008 as they become available. RESPONSE: In Production Request No.1, Staff requested copies of all data requests in our current Washington General Rate Case. As part of the data requests in that case, WUTC staff requested copies of all reports by rating agencies and securties analysts for 2007 to present. Those reports were provided under Data Request 019 and 020, which were provided with all of the other data requests during IPUC Staffs visit during the week of May 16-20. . . . AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO A VU-E-08-01 / A VU-G-08-0l IPUC Production Request Staff-092 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/02/08 Elizabeth Andrews Jeane Pluth State & Federal Reg. (509) 495-8620 REQUEST: Please provide a list, in Excel format with formulas activated, all charges to the following accounts. The list should include date, vendor, amount, a brief descrption, and some method of tracking, i.e. voucher number or invoice number. a. Acct 514000 Maint Misc Steam Plant b. Acct 539000 Hydro Gen Oper-Misc c. Acct 545000 Maint Misc Hydro d. Acct 549000 Other Gen Oper- Misc e. Acct 554000 Other Gen Maint-Misc f. Acct 566000 Misc Transmission Exp g. Acct 573000 Transmission Service Misc Plant h. Acct 588000 Distrbution Oper-Misc 1. Acct 598000 Distrbution Maint-Misc j. Acct 910000 Customer Servce & Info Exp-Misc k. Acct 916000 Misc Sales Expenses 1. Acct 923000 Outside Servces Employed m. Acct 930200 Misc General Expenses RESPONSE: Account transaction detail for the FERC accounts listed above were made available to IPUC staff durng their site visit May 16-20. . . . A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO A VU-E-08-0l / A VU-G-08-0l IPUC Production Request Staff-095 DATE PREPARD:WISS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/08 Don Kopczynski Kathy Nitteberg Manager, Supply Chain (509) 495-4210 REQUEST: Please provide the cost!enefit analysis of outsourcing the bil priting and mail serces. RESPONSE: The previous bil print and mail services at A vista were outsourced to EDSlXerox. The timing of the Xerox contract expiration provided an opportity for us to revisit our onsite operation to address several important business needs: . Provide disaster recovery . Increase operational reliability . Add flexibilty and scalability to address growth and/or dynamic daily biling volumes duetoAM . Ensure operational costs are reasonable and competitive The EDSlXerox per bil print/mail costs were estimated at $.1335 - $.1775 depending on treatment of the graphic services fee (Le., EDSlXerox provided a bundled service for all printing - bils and other). A Request for Proposal was sent to 18 potential bidders. 11 firms responded, with detaled evaluations then provided by 4 firms. The successful bidder, Regulus, proposed serices to meet our business needs at an overall costs of $.1166 per bil. A copy of the cost!enefit analysis is provided in our response 095C. Ths response contains TRAE SECRET, PROPRIETARY or CONFIDENTIA information and exempt from public view and is separately filed under IDAPA 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code, and pursuant to the Protective Agreement between Avista and IPUC Staff dated March 13,2008. . . . A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/08 Scott Morrs Patrck Ehrbar State & Federal Reg. (509) 495-8620 IDAHO A VU-E-08-01 / A VU-G-08-01 IPUC Production Request Staff-096 REQUEST: Please provide a wrtten update on Avista's proposed holding company. Please state which jursdictions have approved the holding company, any stipulations those jursdictions have placed on A vista, and any reasons for any jurisdiction that has yet to approve the proposed holding company. RESPONSE: In February 2006, Avista filed for regulatory approval of the proposed formation of a holding company (reorganzation) with the Federal Energy Regulatory Commission (PERC) and the public utility commissions in Washington, Idaho, Oregon and Montana, conditioned on approval by Shareholders. On April 18, 2006 FERC issued its "Order Authorizing Disposition of Jursdictional Facilities" in Docket No. EC06-85-000 approving the Company's reorganzation, conditioned on approval by the state regulatory agencies. Shareholder approval of the reorganzation was granted at Avista Corp.' s Anual Shareholder meeting May 11, 2006. On June 30, 2006, the Idaho Public Utilities Commission issued an order approving Avista's reorganization application, based on a settlement in that state (A VU-E-06-0l & A VU-G-06-01). On Februar 28,2007, the Washington Utilities and Transportation Commission issued an order approving Avista's reorganzation application, based on a settlement in that state (U-060273). The Montana Commission has yet to act on Avista's Reorganzation application, and the procedural schedule for consideration of the Company's application in Oregon (U-1250) has been suspended by agreement of the paries to allow additional time for discussion among the paries. Attached are the following settlement stipulations which contain the list of commitments and conditions the paries agreed to: "StafCPR_096-Attachment A.pdf' - Washington Settlement Stipulation "Staff_PR_096-Attachment B.pdf' - Idaho Settlement Stipulation . . . "õ"'tî.-l .. ;. ì BEFORE TH WASHIGTON UTITS AND TRSPORTATION COMMSSION In the Mattr of the Application of A vista DOÇKET UE-:060273 Corporation d//a' A vist Utilities for an Order Approving a Corporate SETTEME STIPULA nON Reorganzation To Create a Holdi Company, AVA Formation Corp. I. OVERVIW A.The Stipulation resolves all issues and should be approved J The Pares to ths Settlement Stipulation agree that it represents a fair, just and reaonable compromise of the issues raised in ths proceedig, tht ths Settement Stipulation ("Stipulation") is in the public interest and it satisfies the Commssion's "no har to ratepayers" policy. The Pares fuer ag that the Commission should approve ths Stipulation with no material chages, in resolution of all issues in ths docket. . Therefore, the Pares recommend the Commission approve A vista's Application for reorganzation under the terms set fort in ths Stipulation. The. Paries understad ths Stipulation is subject to Commission approval. B.Parties to the Stipulation Ths Stipulation is entered into, by and between CommissionSta:t Á vist2 Corpration, doing business as A vista Utilities ("A vist''), and the Public Counel Section of ' the Attorney Genera's Offce ("Public Counel"). 3 The other paries to ths docket ar Intervenors Nortwest Industrial Gas Users (NIGU) and the Industral Customers of Nortwest Utilities (ICNU, who are not STIPULATION - 1 Page 1 of 21StafCPR_096-Attachment A.pdf . . . (-') ..- '-.n signatories. However, NWGU's counel (M. Finkea) and ICNU's counsel, Mr. Perkins, respectively advised Commission counel (M. Trotter) tht NWGU and ICNU n~ither support nor oppose this Stipulation. Consequently, ths is a multipar settement, as tht term is defined in WAC 480-07-730(3). Stip. , 3. c.Documents comprising the Stipulation 4 The Stipulation consists of ths document entitled "Settlement Stipulation" and Appendix A attched hereto, entitled "Commitments and Conditions." II. NATUR OF A VISTA'S APPLICATION 5 On Februar i 6, 2006, A vista fieo its "Application of A vista Corporation" ("Application") with the Commission, seekig an order authorizig Avista to conduct a corporate reorganization, including the formation of a holdig company to be known as AVA Foriation Corp (hereinar referred to as the_"Reorganzation"). This Commission ha jursdiction over such request puruat to RCW 80.12. 6 . Curntly, Avista Corporation, doing business as Avist Utilities, is the utility offering electrc and/or natual gas service in easter Washigton, norter Idao, Orgon and Monta. A vista Capita is a subsidiar of A vista Corporation. A vista Capita curently is the parent corpration of Avist Corporation's non-reguated subsidiar investments and operations. 7 Avist proposes to form a holding company called A V A Formation Corp. ("AVA"). i A VA would be the parent corporation of the existing reguate utility, which would be l This name will be used in the interim for purposes of designating the holding company. When the new name is publicly announced, A vista will notifY the Commission and interestd pares. STIPULTION - 2 StafCPR_096-Attachment A.pdf Page 2 of 21 . . . o ~j called Avista Corporation (doing business as Avista Utiities). Avista Corporation. would become a separate compay wider the parnt company, AVA. 8 AVA would also be the parent company of A vista Capital, Inc., which would contiue to hold the non-reguated subsidiai investments and operations, such as A vist Energy, Advantage IQ (formedy Avista Advantage) and Avist Power. ID. NATinOFTBESTW~ATION A.The Stipulation is subject to Commission approval Ths Stipulation is subject to Commission approval. The Paries understd and9 agre tht ths Stipulation in no maner binds the Commission in ruing on the Application until such a time as the Commission approves the Stipulation. B. Commitments 10 Appendi A of this Stipulation conta the complete list of the commitments and conditions Qiereinafer r~ferrd to as "Commitmènts") A vist agrees to make and abide by to ensure tht the formtion and futue conduct of the holding company corporate stctu meets the Commission's "no ha to ratepayers" policy.2 By virte of executig ths Stipulation, A vista agrees to pedorm all of the Commitments set fort in Appendix A accordig t~ the provisions òf each Commitment as set fort therein. 11 Cert of the Commitments are made by the new, to-be-formed parnt corporation, AVA. Avista agees it has authority to make these commitments on behalf of AVA, and that upon its formation, AVA will be bowid to abide by these commitments. 2 In re PacifCorp and Scottish Power PLC, Docket 00-981627, 3Ñ Supplement Order on Preheaing Conference (April 2, i 999) at 2-3. STIPULATION - 3 Page 3 of 21StafCPR_096-Attachment A.pdf . . . "_-:..--~ ._JL.J IV. THE PROCESS FOR APPROVIG THE STIPULATION A.The Parties recommend approval and agree to support the Stipulation 12 The Pares recmmend the Commission approve this Stipulation in its entirety, pursuat to WAC 480-07-740 and -750. The Pares agr to support ths Stipulation before the Commission. Each Par agrees it will not appeal any porton of ths Stipulation or Order approving the same, so long as no material changes are made to the Stipulation. B.Hearing procedures 13 The Pares agree tht with one business day of the date of execution of,ths Stipulation, Sta will file tlis Stipulation with the Commission on behaf of the Pares. The transmittal letter will ask the Commission to suspend the existig procedur schedule and schedule hearng dates to review the Stipulation. 14 The Paries understad the Commission has dicretion, consistent with applicable law, to determine the appropriate procedures for determinng whether it will approve ths Stipulation. c.Evidence 15 The Pares agree that the Commis~ion should adit into evidence the direct case fied by Avista in ths docket.3 Additiona evidence will be presente at a heag on the settement to be scheduled by the Commission, or ås otherwse dircted by the Commission. 3 This evidence consists of the direct testimony and exhibits of Mr. Norwood (Exhibit _ (KON-l 1) and Exhbits _ (KNO-2) and _ (KON-3) and Mr. Malquist (Exhibit _ (M-11) and Exhibits _ (MK- 2) and _ (MKM-3), and the direct tetimony of Mr. AndreWs (Exhibit _ (EMA-IT). STIULTION - 4 StafCPR_096-Attachment A,pdf Page 4 of 21 . . . L.~. -'1 D.Effect of Commission approval without material changes 16 The Pares agree tht if the Commission approves the Stipulation without matenal change, ths docket will be concluded, subject to any proedings descnbed in Par W.F (ft 19-24) below ("'Most favored nations' provision"). E.Effect of rejection or partal Commission approval of this Stipulation 17 In the event the Commission rejects any par or all of ths Stipulation, or imposes any additional material terms as a condition of approval of ths Stipulation, each Par ha the right to withdraw frm ths Stipulation. In order to withdrw, a Par must file a wrtten notice of withdrawa with the Commission and send a copy to the other Pares, witl 14 caendar days of the date of such acton by the Commission. 18 If a Par withdraws puruant to the foregoing proedures, ths Stipulation is not effective, and no Par shall be bound or prejudiced by its terms. In tht event, each Par is entitled to seek reconsideration of the Commission's order parally approving the Stipulation, fie testimony as it chooses, cross-examine. witnesses, and do all other tlgs necessar to put on such case as it deems appropriate. The Pares immediately will request the Commission to promptly convene a preheatng confrence to estblih a produr schedule for the completion of the case. The Pares ag to c.ooperate in development of a schedule that concludes the proceeding on the earliest possible date, tag into account the needs of the Pares to prepare for hearngs, to parcipate in hearngs and to prear briefs. However, afr a Par withdraws, nothg in ths Stipulation prevents two or more of the Pares from fiing a settement of the tyes described in WAC 480-07-730. STIULA nON. 5 Page 5 of 21StafCPR_096-Attachment A.pdf . . . -~~i--!~ F."Most favored nations" proviion 19 In the process of approving the Reorganization, other junsdictions4 may include ternsS that are not contained in ths Stipulation. Accordingly, ths Stipulation may be expanded or modified as a result of reguatory decisions or settements in those other junsdictions. 20 A vist agees tht the Commission shall have an opprtty and the authority to . consider and adopt in Washington any terms to which A vista agrees or with which A vista is required to comply in any other jursdiction, even if such terms are estblished afer the Commission enters its order approving the Stipulation in ths docket. 21 To faciltate the Commission's consideration and adoption of such terms from other jurisdictions, the Pares urge the Commission to issue an order accepting ths Stipulation as soon as practicable, but to expressly reserve in such order the right to re-open ths Stipulation to add (without modification of the languge thereof except such non-substative changes as are necessar to make the term applicable to Washingtn) terms accepte or ordered in another junsdiction. 22 The Pares recommend the followig process related to potential additional terms originating from reguatory proceedings in other junsdictions: 4 The Oregon and Montaa commissions have yet to act on Avista's Reorganizaion applicaons. On June 30, 2006, the Idaho Public Utilties Commission issued an order approving Avista's reorgaization applicåtion, based on a settement in that stte. In re Application of Avista Corporation, dba Avista Utilties for an Order Approving a Corporate Reorganization to Create a Holding Company, AVA Formation Corp., Cae A VU-E- 06-1 and A VU-G-06-1 (Order 30091). The Federal Energy Regulatory Commission has also issued its "Order Authorizing Disposition of Jurisdictonal Facilties" on April i 8,2006. 115 FERC , 62,080.5 "Terms" is broadly used to refer to provisions, conditions, commitments, covenants, elements etc. STIPULTION - 6 StafCPR_096-Attachment A.pdf Page 6 of 21 . . . ,. Q i . -; With five calenda days .afer a stipulation with new or amended terms is filed by A vista with an agency in another jursdiction, A vista will send a copy of the stipulation and terms to the Commission and the Paries. With five calendar days afr an agency in another jursdiction issues an . order that accepts a stipulation to which A vist is a par or issues an order tht otherwse imposes new or modified terms, the applicable order, together with all commitments and conditions of any tye agreed to by A vista or ordered by the agency in such other jursdiction, wi be filed with the Commission and served on the Pares by the most expeditious mean practical. With fifteen calendar days afer receivig the last such filig from the other jursdction ("Final Filing"), any Par wishing to do so sha fie with the Commssion its response filin, inCluding its position as to whether any terms frm the other jursdiction (without modification of the language thereof except such non-substative changes as are necessar to make the term applicable to Washion) should be adopted in Washigton, or whether such term would have an adverse impact on the Washington jursdictional activities of A vista. . With five caendar days afr any such response filin is filed, any Par to the docket may file a reply with the Commission. The Pares agre to support in their filings the issuance by the Commission ofan order regarding the adoption of such terms as soon as practica thereafer, recognzing that the Reorgaation caot close until fina orders from all relevant jursdictions . . STIPULA TION ~ 7 Page 7 of 21StafCPR_096-Attachment A.pdf . . . 23 -~..~ i-..r'. 'j have been issued. If the Commission adopts any such term, and the term is material, eah Par has the right to withdraw from the Stipulation according to the proce4ures in Par N.E en 17-18) above. Not later than the Final Fili, A vista will diclose to the Pares any wrtten terms made in another state jursdiction (between the date of the fiing of the Stipulation ard the receipt of the last order from an agency in a Reorganzation docket) tht were intended to encourge approval of the Reorganzation or avoid an objection thereto. 24 The Pares believe other jursdictions will complete their review of the Reorganzation in time suffcient for ths process to be complete by July 31, 2007. The paries therefore encourage the Commission to use its best efforts to complete. the foregoing process by that date. v. EFFCTIV DATE, APPROVAL DEADLIN, EXECUION AN OTHER MATTRS A.Effecte date 25 The effective date of ths Stipulation shall be the date of the completon of the Reorganzation, provided the Commission has approved ths Stipulation by that date. The anticipated date of completion of the Reorgazation is on or before July 31, 2007. B.Approval deadline 26 The Commission should approve the Stipulation as soon as practical, subject oiùy to the procedur under the "most favored nations" procedures discussed in Par N.F e" 19-24) above. As noted there, the Paries believe other jursdictions will complete their review of the Reorganzation in time sufcient for the "most favored nations" process to be complete STIULATION - 8 StafCPR_096-Attachment A.pdf Page 8 of 21 . . . o r~ 27 by July 31, 2007. The pares therfore encourage the Commission to use its best effort to complete the approval process by tht date. C. Execution of the Stipulation This Stipulation is considered executed when all Pares sign the Stipulation. A designated and authoried representative may sign the Stipulation on a Par's behal. The Pares may execute ths Stipulation in counterp. If the Stipulation is executed in counterpar, all counterpar shal constitute one agreement. A faxed signtue page contang the signtu of a Par is ~cceptable as an original signatu page signed by that Par. Each Par shal indicate the date of its signtu on the Stipulation. D. Integrated Agreement The Pares have agred to ths Stipulation as an integrted document. Ths Stipulation is the Pares' enti agrement on all matters set fort herein, and it supersedes any and all prior oral and wrtten understadings or agements in ths docket. E. The Stipulation will not be construed against any Part as the drafter The Pares acknowledge that ths Stipulation is the product of negotiations and compromise and shall not be consed against any Par on the basis that it was the drer of any or all portons of tiis Stipulation. F. No precedent Nothg in ths Stipulation (or anysupporting testmony, presentation or briefing) shall be cited or constred as predent or as indicative of a Par's position on a resolved issue, or asserted or deemed to mean tht a Par agreed with or adopted another Par's 28 29 30 STIPULATION - 9 Page 9 of 21StafCPR _ 096-Attachment A.pdf . . . Q .~ ~_J legal or factu assertons in ths proceedig. The limitation in this pargrph shall not apply to any proceeding to enforce the terms of ths Stipulation. 31 No Par shall be bound, benefited or prejudiced by any position asserted in.the negotiation of ths Stipulation, except to the extent expressly stated herein, nor shall ths Stipulation be constred as a waiver of the nghts of any Par uness such rights are expressly waived herein. Executon of this Stipulation shl not be deemed to constute an acknowledgment by any Par of the validity or invalidity of any parcular metod, theory or princ~ple ofreguation or cost recovery. 32 No Par shall be deemed to have aged tht any mèthod, theory or priciple of reguation or cost recovery employed in arvin at ths Stipulation is appropriate for resolving any issues in any other proceeding in the futu. G. Inadmissibilty of negotiations 33 The Pares agre this Stipulation represents a compromise of the positions of the parès in ths cae. Except to the extent necessar for a Par to explain before the Commission its own statements and positions with respect to the Stipulation, eah par agrees it will not offer into evidence any negotiations relating to this Stipulation in ths or any other proceeding regarding ths subject matter. Each Par agrees that such evidence is not admissible and eah Par agrees to oppose the admission of such evidence. This paragraph does not apply to non-privileged, publicly available documents. H.Deadlines 34 Ths Stipulation contans certn :fling deadlines. If any such deadline falls on a weekend or a holiday, the filing is due the next business day. STIPULA nON. 10 Page 10 of 21StafCPR_ 096-Attachment A.pdf . . . Q -~, l:-- I.Publicity 35 Each Par agrees to provide all other Pares the right to review in advance of publication any and all anouncements or news releaes that any other Par intends to make about the Stipulation (with the right of review to include a reasonable opportty to request chages to the text of such anouncements). Each Par also agres to include in any news release or anouncement a statement to the effect tht the Commission Stas . recommendation to approve the Stipulation is not binding on the Commission itself. r'1" Respectfully submitted ths ~ day of Janua,. 2007. COMMISSION STAFF By ~~ Donald . Trotter Senior Counel, Offce of the Attrney General Counel for Washington Utilities and Transporttion Commission Sta Date: t(.oj (ot. . A VISTA CORPORATION By David J. Meyer Attorney Vice President and Chief Counsel of Reguatory and Governenta Affairs for Avista Corp. Date: STIULATION - II StafCPR_096-Attachment A.pdf Page 11 of 21 01Î0512007 15:51 FAX 509 495 ~1 ~ I--' . . . AVISTA CORP ~ 001/002~ i 1~~. L.PubliCity 35 Eah Par ag to prvide all other P~es the right to revi~w in advance of publication any and al announceents or news releas that any other Pary intends to mak abut the Stipulation (with the rit of review to include a re8SÇ)nable opportnity to reuest change to the text of such amceents). Eac Par also ag to include in any news re or announcement a statemen 10 the effect that di Comssion Stas n:omendaOD to approve th Stipulon is not binding on the Commssion itself. Respetfly submittd ths _ day of Januar. 2007. COMMSION STAF By, Donald T. Trtt Senor Cou17 Offce of the Attomey Gera Counsel for Wasngtn Utilides and Trpotion Comssion StaD~: ' AVITA CORPRATION ~L/:z Attorney Vice Pr~ and )lef Counsel of Reguatry and Qoverinta Afairs for A vista Coip.Date: / /øs-/tf/ '.' STTION - 11 StafLPR_096-Attachment A.pdf Page 12 of 21 . :~j PUBLIC COUNSEL SECTION :..,LJ BY~UJ b¡~~ l- ~f'i.""~,~'~hJudith ebs \1 (Or (01- Assistat Attorney General, Offce of the Attrney Genera Public C9Jel Section Date: \f c: J ( 0'1 . . STIPULATION. 12 StafCPR_096-Attachment Apdf Page 13 of 21 .-',W o .APPENDIX A COMMENTS AN CONDITIONS AVISTA CORPORATE REORGANZATION TO FORM A HOLDING COMPAN (Docket UE060273) 1.) A vista Corpration, doing busiess as A vista Utilities (hereinafer "A vista Utilties") will maintan its own books and records, separate from the books and records of AVA Formation Corp. (heriafr "A V A'j. The assets of A vista Utilities and AVA and their subsidiares or afiates will be separately accounted for. Avista Utilities' ficial books ánd records and state and . federal utity reguatory filigs and documents will continue to be avaiable to the Commission, upon request. 2.)AVA and A vista Utilities will provide the Commssion and other pares to ths Docket upon request, access to all books of account as well as all documents, data, and records of their afliated interests, which pert to tractions between A vist Utilities and its afliated interest or which ar otherse relevant to the business of A vist Utities..3.)A VA, A vista Utities and all afliates will make their employees, offcers, diectors and agents available to testify before the Commssion to provide information relevant to mattrs with the jursdiction of the Commission. 4.) AVA and Avista Utilities agre tht one of its independent ditors on each Board of Directors will have had prior experience with respect to the operation, fmancial analysis or regulation of the reguated gas or electrc utilty industr. 5.) The Commission or its agents may audit the accountig records of A VA and its subsidiares that ar the bases for chages to A vista Utilties, to determine the reasonableness of allocation fators used by AVA to assign costs to A vista Utilties and amounts subject to allocation or direcf charges. AVA agees to cooperate fuly with such Commission audits. 6.) Avista Utilties will file on an anua basis a copy of any afliated interest report fied in other jursdìctions. 7.) AVA and,A vista Utilities will comply with all applicable Commission statutes and regulations regarding afliated interest tranactions, includng tiely filing of applications and report.. StafCPR_ 096-Attachment A.pdf I Page 14 of 21, ~ J ,:= .8.)A vist Utilities and AVA will not cross-subsidize between the reguate and non-reguated businesses or between any reguated businesses, and shal comply with the Commission's applicable orders and rues with respect to such matters. 9.) . Nothg in these Conditions prevents Avista Utilities frm having its own subsidiares. However, no A VA holdig (i.e., a subsidiar held directly by A VA or a subsidiar held indirectly by A V A, such as a subsidiar of an A VA subsidiar) shal be conveyed to Avista Utiities or a subsidiar of Avista Utiities, without pnor Commission approval. 10.) Any proposed cost allocation metodology for the allocation of èorporate and afliat investents, expenses, and overheads, requied by law or rue to be submitted to the Commission for approval, wil comply with the following principles: a. For servces rendered to Avista Utiities or each cost category subject to allocation to A vista Utilties by AVA or any of its afliates, AVA must be able to demonstrte that such servce or cost category is necessar to A vita Utilities for the pedormance of its regulated operations, is not duplicative of s~rvices aleay being performed withn A vist Utilities, and is reaonable and prudent...b. Cost allocations to A vista Utiities and its subsidiares will be based on generally accepted accounting stadas; that is, in genera, diect costs will be charged to specific supsidiares whenever possible and shared or indirect costs wil be allocated based upon the pnmar. cost-drving factors. c. AVA and its subsidiares will have in place accountig systems adequate to support the allocation and assignent of costs of executives and other relevant personnel to A vista Utilities. d. An audit trail will be maintaned such that all. costs subject to alocation ca be specifically identified, parcularly with respect to their origin. In addition, the audit trail must be adequately supported. Failur to adequately support any allocated cost may result in denial of its recovery in rates. e. çosts which would have been denied recovery in rates had they been incurd by A vista Utilities regulated operations wil likewise be denied reovery whether they ar allocated dictly or indirectly though subsidiares in the AVA group. .f. Any corporate cost allocation methodology used for rate settg, and subsequent chages thereto, will be submitted to the Commission for StafCPR_096-Attachment A,pdf 2 Page 15 of 21' CJ .\, 1'- .approval if requed by law or rue. An Intecompany Adminstrative Servces Agreement (ISA) will be developed tht will include the corporate and afliate cost allocation methodologies. The IASA will be filed with the Commission as soon as practicable afr the closing of the trsaction. Approval of the IASA will be requestd if reui by law or rue, but approval for råtemakg puroses will not be requested in such fiing. Amendments to the IASA wil also be fied with the Commission. g. AVA and Avista Utilities commit to use asynetrcal pricing (i.e., lower of cost or market for transations to A vista Utiities and higher òf cost or market for tractions from A vist Utilities) for afliate chages or costs, if a readly identiable market' for the goods, servces or assets exists, and if the traction involves a cost of more than $100,000. . 11.) Before December 31, .2009, neither Avista Utilties nor any of its subsidiares will enter into any electrc or natual gas commodity .tranactions, either physical or financial, with AVA or its other afliates or subsidiaries, including Avist Energy and Avista Power. Ths Condition does not afect any other existing or futue limitations on Avista Utilities' energy transactions or trades imposed by the Commission or otherwse. .12.) Avista Utilities and AVA agree, as a condition of the tranaction, to adhere to PERC's Stadards of Conduct (18 C.F.R. Par 358, as promulgated by Order No. 2004, with modifcations made by Order No(s) 2004-A an 2004-B) governg relationsps of, and the sharg. of information beten, A vista Utities' trmission :fction with any energy and marketig afliates, and to adhere, as well, to aný Code of Conduct governing relationships between the wholesale merchat :fction of A vist Utilities and any afiated power maiketer (as set fort in Avista's market-based rate schedule on fie with PERC). A vist Utilities and AVA also agree, as a condtion òf the tranaction, to adhere to FERC's rues governg "shard employees" with respect to the merchant and transmission :fction, inciudi~g maintag a list tht identifies such shard employees. By agreing to abide by these federa reguations as a condition of the trsaction, A vista Utiities and AVA agre tht they will not seek an exemption from such rues pursuat to 18 C.F.R. § 358.l(d), without prior Commission approval. The website at ww.oatioasis.com/avat/index.html ("FEC Stadards of Conduct," then "Organzational Char") provides access to Avista Utilities' deparenta organationa chas and identifies shard employees within those deparents. 13.) Avist Utilities will maita separate debt and, if outstading, preferrd stock ratings. A vista Utilities will maitan its own corporate credit ratig, as well as ratings for each long-term debt and preferred stock (if any) issuance. . . StafCPR_096-Attachment A.pdf J Page 16 of 21 t1..-~L-J .14.) Avista Utilities and AVA will not advocate for a higher cost of capita as compad to what A vista Utilities' cost of capita would have been, absent the reorgaization. 15.) With thee months of closing of the tracton, AVA and Avita Utilities commit to obta from one or more rag agencies wnttn confation that A vista Utilities will have its own corprate credt ratig, separte and apar frm A VA, as well as separate ratings for each long-term debt and preferred stock (if any) issuace, and tht it will not otherwse be consolidated with AVA for rags purses. If the rig-fencing proviions of ths stpultion ar insufcient for puroses of obtag a separte rating for A vista Utiities, A V A and A vista Utilities will so notify the Comnission and propose and implement, upon Commission approval, such ad~itional nng-fencing provisions that are sufcient to secure separte corporate ratigs for AVA and A vita Utilities. 16.) AVA and Avist Utilities will exclude all cost of the formation of the Holdig Company from Avista Utilities' utility accounts. . 17.) AVA and Avist Utilities wil provide the Commission and other pares to this Docket upon reuest, with unstrcte access to all wrttn inormation provided by and to credit ratig agencies that pertns to A vista Utilities or A VA. A V A will also provide the Commssion, and other pares to ths Docket upon request, with unstrcte access to all wrtten inormaton provided by and to credit ratig agencies tht pert. to AVA's subsidiares to the extnt such information may potentialy impact A vista Utilities. 18.) The capita requirements of Avist Utilities, as determined to be necessar to meet its obligation to serve the public, wil be given a high priority by the Board of Directors of AVA and Avist Utiities. 19.) Avista Utilities agrees to request the Commission order described in RCW 80.08.040(4) for transactions subject to RCW 80.08 that Avista Utiities enters into followig the effective date of the Reorganzation. 20.) Nothng iIl these restrctwg commitments shall be interpreted as a waver of A vista Utilities' or A VA's rights to request confdential 1ratment for inormation that,is the'subject of any comiitments. . 21.) Recgnzing the importce of increasing the equity component of its capital strctue, Avista Utiities agres tht it wil increase the actual utility equity component to 40% by June 30,2008. Should it fail to do so, Avist Utilities agrees that in the next general rate case filed by it afer June 30, 2008, it will use the most curent actul utlity equity ratio (derived frm the most recent calendar quaer), in lieu of a hypthetical capita strctue. To the extent tht A vista Utilities incurs increaed power supply or purchased gas costs that ar StafCPR_ 096-Attachment A.pdf 4 Page 17 of 21 ..., i'-;r-j .not recovered in retal rates in a tiely maner, it would impair Avista Utilities' abilty to build equity. Accordgly, the calculations to determe whether the taget is Diet will be adjused for any additiona deferrd power supply or purhased gas costs recorded on its books afr Janua 1, 2007, whch have been approved for recovery, but over a penod longer th proposed by the Company. The' calcuations to determine whether the taet ha been met will also be adjused for any' changes to Generally Accepted Accounting Pnnciples (GAA) effective subsequent to December 15,2006. . 22.) A VA and A vist Utilties commit tht A vista Utilities will not make any dividends to A VA if A vista Utilities' common equity ratio is below 30% of its Tota Adjusted Capita, without Commission approval. AVA and Avita Utilties also agre tht A vista Utilities will not make any dividends to AVA tht will reduce A vista Utilities' common equity capita below 30% of its Tota Adjusted Capita, without Commission approval. At such tie as the actu utlity equity component reaches 40% (see Condition 21, above), Avista Utilities wil notify the Commission should any dividends to A VA reuce Avista Utilities' common equity below 35% of its Total Adjusted Capita. The notice wil explai the pnncipal causes of the sitution. These percntaes wi be adjusted, as necessar, to account for any chas to Generly Accpted Accounti Priciples (GAA) effective afer December i 5, 2006, as well as for the tra1ment of defè1Ted power supply or purhaed gas costs, as referenced in Condition 21, above. For puroses of calculati the numerator of the percentage, common equity will not include any poon of A vista Utilities preferr stock issued and outstading., A vista. Utities' Tota Adjusted Capita is defined as common equity, preferred equity, long- term debt, short-term debt and .capitaized lease obligations. 23.) Though December 31, 2016, Avista Utilities will provide notice to the Commission, and to . other pares to ths Docket upn request, when it increases the amount of any dividend payment by 10010 or more over the previously-paid dividend. 24.) In the event of a credit ratig downade of Avita Utilities, Avista Utilities will give notice to the pares in ths Docket and schedule a meeting with Sta with one month of the downgrade to discuss the reason for the downgreand Avista Utilities' plans going forwd. . 25.) . On or before April. 1, 2008, and on or before ever anversar date thereafr, A vista Utiities wil f~e with the Commssion, and wil provide to other pares to tls Docket upon request, an anual report for the preceding calendar year, in whch it descnbes its Compliance with Conditions 21,22 and 23, concernng the equity component of the capita strctue and payment of dividends. . StafCPR_096-Attachment A.pdf 5 Page 18 of 21, _--LJ u .26.) Avista Utilities. is requied to apply to the Commission for approval of securty issuaces puruant to RCW Chapter 80.08. A vista Utiities Wil not seek an exemption from ths reuiement for twelve month following the closing of ths tranaction. Staff will evaluate the "all-in-cost" of issuaces for inclusion in rates and the cost of any debt issuance recogned for ratemaking will not be higher than it otherwse would have been without the corporate reorganzation. 27.) AVA and Avista Utilities will provide the Commission and other pares to this Docket upon request, acss to corporate minutes includng Board of Dirtor's minutes and all committe minutes, along with any related soure documents tht ar relevant to the busin~s and risk anysis of A vista Utilities. A vista Utiities and the par requesting acess will estblish an agreeable procedur to review these confdential documents in Spokane, Washigton. 28.) AVA and Avista Utilties will provide the Commssion, and other pares to. ths Docket upon. reuest, access to operational, intern and risk. audit report and documentation. A vista Utilities and the par requestig access will establish an agreable procedur to review these confdential documents upon request..29.) AVA and Avista Utilities will notify the Commission, and other pares to ths Docket upon request, of all publicly anounce proposals for divestite, spin- off or sale of any integral A vista Utilities fuction. AVA and A vist Utilities will also file for Commission approval of divesttue, spin-off, or sale of any integral Avista Utilities fuction, which is subject to WUTC jursdiction. Ths condition does not limit any jursdiction the Commission may have. 30.) Avista Utilities or AVA wi notify the Commission, and other pares to ths Docket upon request, pror to implementation of plans by A vist Utilities or AVA: (1) to form an afliate for the purose of trsacting business with Avist Utilities' reguated operations; (2) to commence new business transactions between an existi afiliate and Avista Utilities; or (3) to dissolve an afliate which has trcted substatial business with Avista Utilities. 31.) A vista Utilities or AVA will notify the Commssion, and other pares to this Docket upon request, subsequent to AVA's or Avista.Utilities' board approval and as soon as practicable followig any public anouncement of: (1) any acquisition of a reguated or unguated business representing 5 percent or more of the capitaization of A VA; or (2) the chage in. effective contrl or acquisition of any material par or all of Avista Utilities by any other fi, whether by merger, combination, trsfer of stck or assets. . Staff _PR _ 096-Attachment A. pdf 6 Page 19 of 21, . . .' ù (j 32.) Upon request, Avista Utilities wil provide to the Commission, and other pares to ths Docket on an inonnationa basis, credit rating agency news releases and final reports regarding A vista Utilties when such report are known to A vista Utilities and ar available to the public. 33.) AVA and Avista Utilities commt that in the eventtht Avista Utilities obtas a loan from its parent company or any affiliatd -cmpany, Avist Utilities will, in any subsequent rate proceeding demonste tht the debt obligaton interest, tenns, and conditions are compaable to or less th wha A vist Utilities could have obtaned in the maket at the time the debt was obtaed by A vista Utilities, tht the loan is on reaonable tenns and without markup to the holdig compay's cost of fuds, ana tht the debt procurment will not interfere with any nng-fencing mechansms tht secure the utilty. 34.) AVA and Avista Utilities will enter into an agreement tht incorporates the ring-fencing provisions set fort herein which .ageement shal be bindig upon AVA and Avista Utiities, and their respective Boards of Directors. Ths agreement will be fied with the Commission with thee month of closing of the tranaction. AVA and Avista Utilities commit that no amendments, revisions or modifications will be made to th agrement or any rig-fencin provisions without prior Commssion approval for the' sole purse of addressing the nng-fencing provisions. .35.) Withn thee months of closing of the tranaction, AVA commits to obtan a non-consolidation opinion that demonstrates that the ring-fencing around A vista Utilities is sufcient to prevent A vista Utiities from being pulled into an A V A banruptcy. AVA commits to prmptly fie such opinion with the Commssion. If the rig-fencing provisions of ths agreement are inffcient to obtan a non-consolidation opinion, A V A agres to promptly underte the followig actions: a) Notify the Commision of ths inbilty to obtan a non- consolidation opinion. b) Propose and implement, upon Commission approval, suh rig-fencing provisions tht are sufficient to prevent A vist Utilities from being pulled into an A V A banptcy. c) Obta a non-consolidation opinon. 36.) Unless another process is prvided by statute, Commission regulations or approved Avista Utilities' taff, AVA and Avista Utilities encourge the Commission to use the following process for adminstring the commtments. The Commission should give A V A and A vista Utilities wrtten notification of any violation by either company of the commitments made in this application. If such failure is corrected with ten (10) business days for failure to me StafCPR_096-Attachment A.pdf 7 Page 20 of 21 . 37.) tJ ~~ t.-- report, or five (5) business days for other violations, the Commission should tae no action. The Commission shal have the autority to detere if the corrctive actiori has satisfied or corrected the violation. AVA or A vista Utilities may request, for cause, an extension of these time periods. If AVA . or A vista Utilities fais to correct such violations with the specified tie frames, as modified by any Commission-approved extensions, the Commission may seek to assess penaties for violation of a Commission order, agait either A VA or A vist Utilities, as allowed under state laws and reguations. The Applicants agree that the Commission sha have an opportty and the authority to consider and adopt in Washingtn any commitments or conditions to whch the Applicants agree or with whch the Applican ar. requied to comply. in other jursdictions, even if such commitments and conditions are agreed to afer the Commssion enters its order in ths docket. To faciltate the Commission's consideration and adoption of the commitments and conditions from other jursdictions, the Pares urge the Commission to issue an order accepting ths Stipulation as soon as practical, but to reserve in such order the explicit right to re-open to add commitments and conditions accepted or ordered in another state jurdiction. 38.) AVA and Avista Utiities acknowledge and agree that the. Commission reta its authority over A vista Utiities in the event of either volunta or involunta baptcy proceeings afecg either AVA or A vist Utiities, and that such authority is not preempted by applicable banptcy laws. Such Commission autorities ar acknowledged to expressly include reguation of the issuace of securties (RCW 80.08), the mortgage or pledge of assets (RCW 80.12),' and the disposition or sale of assets by Avista Utilities (RCW 80.12). Notwthstdig any banptcy, reorgaization, or other inolvency proceedings with respect to A V A, AVA agrees it Shall not acquiesce, petition or otherwse invoke or cause A vist Utilities to invoke the process of any cour or governent authority for the. purse of commencing or sustang a cae against A vist Utilities under any federal or state banptcy, insolvency or similar law, or ordering the widig up of the afais of or the liquidation of Avista Utilities (and will oppose, to the extnt permittd by law, aIy such process), so long as Avista Utilities remais otherwse financialy healthy. . . StafCPR_096-Attachment A.pdf 8 Page 21 of 21 . ~ . -., .";:.~. ..1.DavidJ. Meyer Vice President and Chief Counsel of Regulatory and Governmental Afairs A vista Corporation 1411 E. Mission Avenue P. O. Box 3727 Spokane, Washington 99220 Phone: (509) 489-0500, Fax: (509) 495-8851 '_' ~ ~.':~ : 5 ;:'~; ~~~: :~2 . . " . .: .." . ~ _.,' . .' '~' r_ ~ '; ~ . ~ ::.: :: 0: '.. :: :~: :~~ ; ;.~ : : BEFORE THE IDAHO PUBLIC UTILITIE COMMSSION IN THE MA TIER OF THE APPLICATION OF ) AVISTA CORPORATION DBA AVISTA ) UTILITIE FOR AN ORDER APPROVING ) A CORPORA TE REORGANIATION TO ) CREATE A HOLDING COMPANY, ) AVA FORMATION CORP. ) CASE NO. A VU-E-06.1 AVU.G.06.1 STIPULATION .This Stipulation ("Stipulation") is entered into by and between A vista Corporation, doing business as Avista Utilities ("Avista"), and the Idao Public Utilities Commssion Staff ("Staff') (collectively referrd to as the "Pares"). I. INTRODUCTION 1. The terns and conditions of ths Stipulation are set fort herein. The Pares agr that this Stipulation represents a fair, just and reasonable compromise of the issues raised in this proceeding and that this Stipulation is in the public interest. The Pares, therefore, recommend that the Public Utilities Commssion ("Commssion") approve the Stipulation and all of its terms and conditions. Reference IDAPA 31.01.01.272,274. . STIPULATION - 1 StafCPR_096-Attachment B.pdf Page 1 of 15 .ß. BACKGROUN 2.On Februar 16,2006, Avista fied an Application with the Commssion seeking an order for authority to conduct a corporate reorganization and form a holding company to be known as AVA Formation Corp (hereinafter referr to as the "Reorganzation"). Ths Commssion has the jursdiction over such request puruant to Idah Code § 61-328. The holding company, AVA Formation Corp. (the "Parnt Corporation" or "AV A"), would be formed as the parent company of the existing regulated company, Avista Corporation. The Parnt Corporation would also be the parent company of Avista Capital, Inc., which would continue to hold non-regulated subsidiares. i 3. On April 28, 2006, the Commssion issued its Order No. 30026, providing a Notice of Application, Notice of Workshop, and a Notice of Modified Procedure. 4. No petitions to intervene in this proceeding were fied in this matter..5. Pursuant to the Commssion's Order No. 30026, representatives of the Pares conducted a workshop on May 16,2006, and engaged in inform settlement discussions with a view toward resolving the Applicaton in this case. Based upon the settlement discussions among the Pares as a compromise of the positions in ths case, and for other consideration as set fort below, the Pares agree to the following terms: i A vista Corporation, doing business as A vista Utilties, is currntly the corporate parent. The proposed strcture would make A vista Utilities a separate company under the Parent Corporation and A vista Corporation would no longer exist as an operating entity. . STIPULTION - 2 StafCPR_096-Attachment B,pdf Page 2 of 15 .Ill. TERM OF TIl STIPULATION 6. Appendix A contans the complete list of commtments that A vista agrees to make related to the formation and future conduct of the holding company corporate strcture (hereinafter referred to as "Commtments"). By virte of executing this Stipulation, A vista agrees to perfonn all of the Commtments set fort in Appendix A according to the provisions of each Commtment as set fort therein. 7. In the process of obtaning approvals of the Reorganization in other states, the Commtments may be expanded or modified as a result of regulatory decisions or settlements. A vista agrs that the Commssion shall have an opportunity and the authonty to consider and adopt in Idaho any commtments or conditions to which A vista agrs or with which A vista is requied to comply in other junsdictions, even if such commtments and conditions ar agreed to after the Commssion enters its order in this docket. To faciltate the Commssion's consideration and adoption of the commtments and conditions from other junsdictions, the Pares urge the Commssion to issue an order accepting ths Stipulation as soon as practical, but to reserve in such order the explicit nght to re-open Appendix A to add (without modification of the language thereof except such non-substantive changes as are necessar to make the commtment or condition applicable to Idaho) commtments and conditions accepte or ordered in another state jurisdiction. The Paries recommend the following process related to potential additional commtments and conditions onginating frm proceedings in other states: . Within five calendar days afer a stipulation with new or amended commtments is fied by A vista with a commssion in another state . . STIULATION ~ 3 StafCPR_096-Attachment B.pdf Page 3 of 15 . . . STIULTION - 4 jursdiction, Applicants wil send a copy of the stipulation and commtments to the Idao Commssion Staff. . Within five calendar days afer a commssion in another state jursdiction issue an order that accepts a stipulation to which A vista is a pary or otherwise imposes new or modified commtments or conditions, that order, together with all commtments and conditions of any type agree to by A vista or ordered by the commssion in such other state, wil be filed with the Commssion and served on all Pares to this docket by the most expeditious means practical. Within fifteen business days after receiving the last such filing from the other states ("Final Filng"), any Pary to the docket wishing to do so shall fie with the Commssion its response, including its position as to whether any of the covenants, commtments and conditions frm the other jurisdictions (without modification of the language thereof except such non- substantive changes as ar necessar to make the commtment or condition applicable to Idaho) should be adopted in Idaho. . Within five calendar days after any such response fiing, any Pary to the docket may fie a reply with the Commssion. The Paries agree to support in their filings the issuance by the Commssion of an order regarng the adoption of such commtments and conditions as soon as practical thereafter, recognzing that the Reorganization cannot close until final state orders have ben issued. StafCPR_096-Attachment B.pdf Page 4 of 15 .. . 8. Not later than the Final Filng, A vista wil disclose to the Paries any written commtments, conditions or covenants made in another state jursdiction (between the date of the filing of the Stipulation and the receipt of the last state order in the Reorganzation docket) intended to encourage approval of the Reorganization or avoidace of an objection thereto. 9. The Staff, by signng ths Stipulation, acknowledges that Avista has satisfied the standard under Idaho Code § 61-328 for approval of the Reorganization and requests that the Commssion issue its order approving the Application and this Stipulation. The Paries encourage the Commssion to enter a final Idaho approval order by July 31, 2006. 10. The Pares submit this Stipulation to the Commssion and recommend approval in its entirety pursuant to IDAPA 31.01.01.274. Pares shall support this Stipulation before the Commssion, and no Pary shall appeal any porton of this Stipulation or Order approving the same. If this Stipulation is challenged by any person not a pary to the Stipulation, the Paries to this Stipulation reserve the right to cross-examne witnesses and put on such case as they deem appropriate to respond fully to the issues presented, including the right to rase issues that are incorporated in the settlements embodied in this Stipulation. Notwithstanding this reservation of rights, the Paries to this Stipulation agree that they will continue to support the Commission's adoption of the terms of this Stipulation. 11. The Pares agr that ths Stipulation represents a compromise of the positions of the Pares in this case. Other than the above-referenced positions and any tetimony or comments fied in support of the approval of this Stipulation, and except to the extent necessar for a Pary to' explain before the Commssion its own statements and positions with respect to the Stipulation, all . STIULATION - 5 StafCPR_ 096-Attachment B.pdf Page 5 of 15 .negotiations relating to this Stipulation shall not be admssible in evidence in this or any other proceeding regarding this subject matter. 12. Avista acknowledges that the Commssion's approval of the Stipulation, the Commtments or the Application shall not bind the Commssion in other proceedings with respect to the determnation of prudence, just and reasonable charcter, rate or ratemakng treatment, or public interest of services, accounts, costs, investments, expenditus or actions reference in these Commtments. 13. In the event the Commssion rejects any par or all of ths Stipulation, or imposes any additional material conditions on approval of this Stipulation, each Pary reserves the right, upon written notice to the Commssion and other Pares to this proceedng, within 14 days of the date of such action by the Commssion, to withdrw from ths Stipulation. In such case, no Pary shall be bound or prejudiced by the term of ths Stipulation, and each Pary shall be entitled to seek reconsideration of the Commssion's order, file testimony as it chooses, cross-examne witnesses, and do all other things necessar to put on such case as it deems appropriate. In such case, the Pares immedately wil request the prompt convening of a preheatng conference for puroses of establishing a procedural schedule for the completion of the case. The Pares agree to cooperate in development of a schedule that concludes the proeeding on the earliest possible date, takng into account the needs of the Pares in parcipating in hearngs and preparng briefs. 14. No Pary shal be bound, benefited or prejudiced by any position asserted in the negotiation of this Stipulation, except to the extent expressly state herein, nor shall this Stipulation be constred as a waiver of the rights of any Pary unless such rights are expressly waived herein. Execution of this Stipulation shall not be deemed to constitute an acknowledgment by any Pary of . . STIUL nON - 6 StafCPR_096-Attachment B.pdf Page 6 of 15 .the validity or invaldity of any parcular method, theory or principle of regulation or cost recovery. No Pary shal be deemed to have agr that any method, theory or principle of regulaton or cost recovery employed in arving at ths Stipulation is appropriate for resolving any issues in any other proceedng in the future. No findings of fact or conclusions of law other than those stated herein shall be deemed to be implicit in ths Stipulation. 15. Subjectto Paragraph 16 of ths Stipulation, the effective date of this Stipulation shall be the date of the completion of the Reorganization. 16. The obligations of Avista under this Stipulation are subject to the Commssion's approval of the Application in ths docket on terms and conditions acceptable to A vista, in its sole discretion, and the completion of the Reorganization. 17. To the extent any of the above reference filing dates fallon a weekend or a holiday,.the fiing shall be due on the next business day. Respectfully submitte this 15+1 day of June, 2006. Idaho Public Utilities Commssion Sta BYL)~ Cecelia A. ssner Deputy Attorney General Avista Corporation ByC" Z./~/7 J DavidJ. Meyer Vice Prsident and Chief Counsel of Regulatory and Governmental Afairs. STIULATION - 7 StafCPR_096-Attachment B.pdf Page 7 of 15 . . . Appendix A: CommtmentsConditions A VISTA CORPORATE REORGANIZATION TO FORM A HOLDING COMPANY (CASE NO. A VU-E-06-1/A VU-G-06-1) 1.) Avista Utilities wil maintain its own books and records, separate from AVA's books and records. A vista Utilities' financial books and reords and state and federal utilty reguatory fiings and documents wil continue to be available to the Commssion, upon request. 2.) A V A and A vista Utilities wil provide the Commssion access to all books of account as well as all documents, data, and records of their affliated interests, which pertn to transactions between A vista Utilities and its affiliated interests or which ar otherwise relevant to the business of A vista Utilities. 3.) AVA, Avista Utilties and all afilates wil make their employees, officers, diretors and agents available to testify before the Commssion to provide information relevant to matters within the jursdiction of the Commssion. 4.)AVA and A vista Utilities agree that one of its independent directors on each Board of Directors wil have had pnor expenence with respect to the operation, financial analysis or regulation of the regulated gas or electnc utility industr. 5.) The Commssion or its agents may audit the accounting records of AVA and its subsidiares that are the bases for charges to A vista Utilities, to determne the reasonableness of allocation factors used by A V A to assign costs to A vista Utilities and amounts subject to allocation or direct charges. AVA agrees to cooperate fully with such Commssion audits. 6.) A vista Utilities wil file on an annual basis a copy of any affiiated interest report fied in other junsdictions. 7.) AVA and Avista Utilities wil comply with all applicable Commssion statutes and regulations regarding affiiated interest transactions, including timely fiing of applications and reports. 8.) Avista Utilities and AVA wil not cross-subsidize between the regulated and non-regulated businesses or between any regulated businesses, and shall comply with the Commssion's applicable orders and rules with respect to such matters. 9.)Any proposed cost allocation methodology for the allocation of corporate and affilate investments, expenses, and overheads, required by law or rule to be StafCPR_096-Attachment B.pdf 1 Page 8 of 15 .submitted to the Commssion for approval, wil comply with the following principles: a. For services rendered to A vista Utilities or each cost category subject to allocation to A vista Utilities by A V A or any of its affiiates, A V A must be able to demonstrate that such servce or cost category is necessar to A vista Utilities for the performance of its regulated operations, is not duplicative of services alady being performed withn A vista Utilities, and is reasonable and prudent. b. Cost allocations to A vista Utilities and its subsidiares wil be based on generally accepted accounting standads; that is, in genera, dirct costs wil be charged to speific subsidiares whenever possible and shard or indirect costs wil be allocated based upon the primary cost-drving factors. c. A V A and its subsidiares wil have in plac accounting systems adeuate to support the allocation and assignment of costs of executives and other relevant personnel to A vista Utilities. .d. An audit trl wil be maintained such that all costs subject to allocation can be specificaly identified, parcularly with respect to their origin. In addition, the audit trail must be adequately supported. Failure to adequately support any allocated cost may result in denial of its reovery in rates. e. Costs which would have been denied recovery in rates had they been incured by A vista Utilities regulated operations wil likewise be denied recovery whether they ar alocated directly or indirectly through subsidiares in the A V A group. f. Any corporate cost allocation methodology used for rate settng, and subsequent changes thereto, wil be submitted to the Commssion for approval if requied by law or rule. An Intercompany Admnistrtive Services Agrement (IASA) will be developed that wil include the corporate and affliate cost allocation methodologies. The IASA wil be fied with the Commssion as soon as practicable after the closing of the transaction. Approval of the IASA wil be requested if reuired by law or rule, but approval for ratemang puroses wil not be requested in such fiing. Amendments to the IASA will also be fied with the Commssion. g. A V A and A vista Utilities commt to use asymetrcal pricing (Le., lower of cost or market for transactions to A vista Utilities and higher of cost or market for trsactions from Avista Utilities) for affiliate charges or costs not covered by the provisions of any cost sharng agrement, if a readily. StafCPR_096-Attachment B.pdf 2 Page 9 of 15 . 10.) 11.) . . identifiable market for the goods, serces or assets exists, and if the transaction involves a cost of more than $100,000. A vista Utilities will maintan separate debt and, if outstanding, preferrd stock ratings. Avista Utilities will maintain its own corporate credit rating, as well as ratings for each long-term debt and preferrd stock (if any) issuance. Within three months of closing of the trnsaction, A V A and A vista Utilities commt to obtan frm one or more rating agencies written confirmation that A vista Utilities wil have its own corporate creit rating, separate and apar from A V A, as well as separte ratings for each long-term debt and preferred stock (if any) issuance, and that it wil not otherwise be consolidated with A V A for ratings purses. If the ring-fencing provisions of this stipulation are insufficient for purpses of obtaining a separte rating for A vista Utilties, A VA and Avista Utilties wil so notify the Commssion and propose and implement, upon Commssion approval, such additional ring-fencing provisions that are sufficient to secur separte corporate ratings for AV A and A vista Utilities. 12.)A V A and A vista Utilities wil exclude all costs of the formation of the Holding Company from A vista Utilities' utilty accounts. 13.) AVA and Avista Utilities wil provide the Commssion with unrestrcted access to all wrtten informtion provided by and to credit rating agencies that pertns to A vista Utilities or AVA. A V A will also provide the Commssion with unrestrcted access to all wrtten information provided by and to credt rating agencies that pertains to A V A's subsidiares to the extent such information may potentially impact A vista Utilities. 14.) The capita requiements of Avista Utilties, as determned to be necessar to meet its obligation to serve the public, wil be given a high priority by the Board of Directors of A V A and A vista Utilities. 15.) Neither Avista Utilities nor its subsidiares wil, on a prospective basis, without prior notification to the Commssion, make loans or transfer funds (other than dividends and payments for inter-company services provided as par of the norml coure of business or routine cash management fuctions or current money pool argements) to AVA or its affliates, or assume any obligation or liabilty as guartor, endorser, surety or otherwise for A V A or its afliates; provided that ths condition wil not prevent A vista Utilities from assumng any obligation or liabilty on behalf of a subsidiar of A vista Utilities. Any changes to curent money pool arangements wil require Commssion approval. AVA wil not pledge any of the assets of the business of A vista Utilities as backing for any securties which A V A or its afilates (but excluding A vista Utilities and its subsidiares) may issue. StafCPR_096-Attachment B.pdf 3 Page 10 of 15 .16.) Nothng in these restrctung commitments shall be interreted as a waiver of Avista Utilties' or AVA's rights to request confidential treatment for information that is the subject of any commitments. 17.) Equity Building Mechansm: The Company agrees that it will increae the actu utility equity component to 35% by December 31,2007 and to 38% by December 31, 2008. To the extent the Company incurs increased power supply or purchased gas costs that are not recovered in retal rates in a timely. maner, it would impai the Company's abilty to build equity. Accordingly, the calculations to determe whether the tagets ar met wil be adjusted for any additional deferred power supply or purchased gas costs recorded on the Company's books afer Janua 1, 2006, which have been approved for recovery, but over a period longer than proposed by the Company. . Failure to meet the first target will result in an automatic reduction in base utility rates (spread unformly across all classes) of 2% effective April 1, 2008. Failure to meet the second target would result in a reduction of 2% effective April 1, 2009. If the Company fails to achieve the fist target but meets the second one, the 2% reduction on April 1, 2008 would be reversed prospectively as of April 1, 2009. If it meets the first target but misses the second, the April 1, 2009 reduction would remai in effect until its next general rate case. If the Company misses both targets, the total reduction would equa 4%, which would remai in effect until the next general rate case. 18.) AVA and Avista Utilities commit that Avista Utilties wil not make any dividends to AVA tht will reduce Avista Utilities' common equity capital below 25% of its Total Adjusted Capital without Commission approval. This percentage wil be adjusted, as necessar, to account for any changes to Generally Accepted Accountig Prnciples (GAA) afer approval of this tranaction. For puroses of calculatig the numertor of the percentage, common equity will not include any portion of A vista Utilities prefered stock issued and outstadig. Avista Utilties' Tota Adjusted Capita is defined as common equity, prefered equity, long-ter debt, short-ter debt and capitalized lease obligations. 19.) Through December 31, 2016, Avista Utilities wil provide the Commission notice when it increases the amount of any dividend payment by 10% or more over the previously-paid dividend. 20.) In the event of a credit rating downgrade of Avista Utilties, the Company wil schedule a meetig with Sta withi one month of the downgrade to discuss the reason for the downgrade and the Company's plans going forward. 21.) On or before Apri11, 2008, and on or before every anversar date thereafter, A vista Utilities will provide to the Commission an anual report for the preceding calendar year, in which it describes its compliance with the. StafCPR_096-Atlachment a.pdf 4 Page 11 of 15 . 22.) 23.) 24.) . . provision of items 17, 18 and 19, concerning the equity building mechanism and payment of dividends. A vista Utilities is reuired to apply to the Commssion for approval of security issuances pursuant to Idaho Cod Title 61, Chapter 9. Avista Utilities wil not seek an exemption frm this requirement for twelve months following the closing of this transaction. Staff wil evaluate the "all-in-cost" of issuances for inclusion in rates and the cost of any debt issuance recognized for ratemang will not be higher than it otherwise would have been without the corporate reorganization. A VA and A vista Utilities wil provide the Commssion access to corporate minutes including Board of Director's minutes and all commttee minutes, along with any related source documents that are relevant to the business and risk analysis of Avista Utilities. Avista Utilities and the Commssion Staf will establish an agreeable procedure to review these confdential documents in Spokae, WA upon request. A VA and A vista Utilities wil provide the Commssion access to operational, interal and risk audit report and documentation. A vista Utilities and the Commssion Staff wil establish an agrable procedure to review these confidential documents upon reuest. 25.) AVA and Avista Utilities wil provide the Commssion and Staff with notification of all publicly announced proposals for divestiture, spin-off, or sale of any integrl A vista Utilities function. AVA and A vista Utilities will also fie for Commssion approval of divestitur, spin-off, or sale of any integral A vista Utilities function, which is subject to IPUC jursdiction. This condition does not limit any jurisdiction the Commission may have. 26.) Avista Utilties or AVA wil notify the Commssion prior to implementation of plans by A vista Utiities or A V A: (1) to form an affilate for the purpose of transacting business with A vista Utilities' reguated operations; (2) to commence new business trsactions between an existing affiliate and A vista Utilities; or (3) to dissolve an affilate which has trsacted substatial business with A vista Utilities. 27.) A vista Utilities or A V A wil notify the Commssion subsequent to A VA's or Avista Utilities' board approval and as soon as practicable following any public anouncement of: (1) any acquisition of a regulated or unregulated business representing 5 pernt or more of the capitaization of A V A; or (2) the change in effective control or acquisition of any material par or all of A vista Utilities by any other firm, whether by merger, combination, transfer of stock or assets. StafCPR_096-Attachment B.pdf 5 Page 12 of 15 .28.) Avista Utilities wil provide to the Commssion, upon request, on an informational basis, credit rating agency news releases and final reports regarding A vista Utilities when such reports ar known to A vista Utilities and ar available to the public. 29.) AVA and Avista Utilities commt that in the event that Avista Utilities obtains a loan from its parent company or any affliated company, Avista Utilities wil, in any subsequent rat proceeng demonstrate that the debt obligation interest, terms, and conditions are comparable to or less than what A vista Utilities could have obtaned in the maket at the tie the debt was obtained by A vista Utilities, that the loan is on reaonable term and without markup to the holding company's cost of funds, and that the debt procurement wil not interfere with any ring-fencing mechanisms that seure the utility. 30.) AVA and Avista Utilities wil enter into an agreement that incorporates the ring-fencing provisions set fort herein, which agrment shall be binding upon A V A and A vista Utilities, and their repective Boards of Directors. This agreement wil be fied with the Commssion within th months of closing of the transaction. A V A and. A vista Utilities commt that no amendments, revisions or modifications will be made to this agrment or any ring-fencing provisions without prior Commssion approval for the sole purose of addrssing the ring-fencing provisions..31.) Within th months of closing of the trsaction, AVA commts to obtain a non-consolidation opinion that demonstrtes that the ring-fencing around A vista Utilities is sufficient to prevent A vista Utilities from being pulled into an A VA bankptcy. AVA commts to promptly file such opinion with the Commssion. If the ring-fencing provisions of ths agrement are insufficient to obtan a non-consolidation opinion, A V A agrees to promptly 1,dertake the following actions: a) Notify the Commssion of ths inabilty to obtain a non- consolidation opinion. b) Propose and implement, upon Commssion approval, such ring-fencing provisions that are sufficient to prevent A vista Utilities from being pulled into an A V A bankrptcy. c) Obtan a non-consolidation opinion. 32.) Unless another process is provided by statute, Commssion regulations or approved A vista Utilities' taff, A V A and A vista Utilities encourage the Commssion to use the following process for adnistering the commtments. The Commssion should give A V A and A vista Utilities wrtten notification of any violation by either company of the commtments made in ths application. If such failur is correcte withn ten (10) business days for failure to file. StafCPR_096-Attachment B.pdf 6 Page 13 of 15 . 33.) . . report, or five (5) business days for other violations, the Commission should take no action. The Commssion shall have the authority to determe if the corrective action has satisfied or corrected the violation. AVA or Avista Utilties may request, for cause, an extension of these tie periods. If A V A or A vista Utilities fails to correct such violations with the specified tie fres, as modified by any Commission-approved extensions, the Commssion may seek to assess penalties for violation of a Commssion order, against either A V A or A vista Utilities, as allowed under state laws and reguations. The applicants agree that the Commssion shal have an opportty and the authority to consider and adopt in Idaho any commitments or conditions to which the Applicants agree or with which the Applicants are requied to comply in other jursdictions, even if such commtments and conditions are agred to after the Commission enters its order in ths docket. To facilitate the Commission's consideration and adoption of the commtments and conditions from other jursdictions, the Pares urge the Commission to issue an order acceptig ths Stipulation as soon as practical, but to reserve in such order the explicit right to re-open to add commtments and conditions accepted or ordered in another state jursdiction. StafCPR_096-Attachment B.pdf 7 Page 14 of 15 .CERTIICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 15TH DAY OF JUE 2006, SERVED THE FOREGOING MOTION FOR APPROVAL OF STIPULATION AND STIPULATION, IN CASE NO. AVU-E-06-1/AVU-G-06-1, BY E-MAILING A COPY THEREOF AND BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE FOLLOWING: DAVID J. MEYER SR VP AND GENERAL COUNSEL A VISTA CORPORATION POBOX 3727 SPOKAE WA 99220-3727 E-mail dmeyer(ßavistacorp.com KELL Y NORWOOD VICE PRESIDENT - STATE & FED. REG. A VISTA UTILITIES POBOX 3727 SPOKA WA 99220-3727 E-mail Kelly.norwood(gavistacorp.com .~c:~ SECRETARY . CERTIFICATE OF SERVICE StafCPR_096-Attachment B,pdf Page 15 of 15 . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-0l / A VU-G-08-01 IPUC Production Request Staff-097 DATE PREPARD: WITNSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/03/08 Elizabeth Andrews Jeane Pluth State & Federal Reg. (509) 495-2204 Please provide a list of expenses (internal and external) associated with Avista's application of forming a holding company. The list should include at least the following: a brief description of the expense, date incured, aiount, the FERC account to which the expense was charged and all allocations. RESPONSE: All costs incured were recorded to FERC Account 417 - Expenses of Non utility Operations. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-0l / A VU-G-08-01 IPUC Production Request Staff-098 DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/08 Don Kopczynski Mike Faulkenberr Gas Engineering (509) 495-8499 Please provide a narative sumarzing the new technologies and technques used by A vista to insert Mercaptan into its natual gas distrbution system. RESPONSE: A vista utilizes both buried by-pass wick type odorizers as well as injection tye odorizers to place odorant in its natual gas pipelines. The majority of odorizers in Avista's system are the by-pass type. While less sophisticated than the injection type, the by-pass odorizers are less costly and highly dependable. Avista does use the injection type odorizers primarily at its larger gate stations. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION IDAHO A VU-E-08-0l / A VU-G-08-0l IPUC Production Request Staff-099 DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/08 Don Kopczynski Mike Faulkenberr Gas Engineering (509) 495-8499 Please provide a list of all expenses associated with the decommissioning of odorant tas previously used to inser Mercaptan in the natual gas distrbution system. The list should include all expenses (interal and external) with the date incurred, FERC account charged, amount and a brief description. RESPONSE: In order to minimize costs, A vista accumulates its odorizers prior to shipping them for disposal. On March 22, 2007, A vista shipped 14 odorizers to Midland Resource Recovery, Cornwall, Ontaro K6H 5Tl, Canada. Ths contractor incinerates the vessels prior to disposing them as scrap steel. The FERC account charged was 880000. The total amount paid to Midland was $69,558.00. . . . A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO A VU-E-08-0l / A VU-G-08-0l IPUC Production Request Staff-l 01 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/03/08 Scott Morrs Roger Woodworth Customer Solutions (509) 495-4138 REQUEST: Please provide a narative explaining the Company's paricipation in Green Volts. Please include a description of the Green Volts program or entity and the extent in which Green Volts receives financial support from A vista. RESPONSE: Green Volts is a San Francisco-based solar energy firm that is developing anew, high concentration photovoltaic technology to deliver solar power, on a utilty scale, at a cost that is potentially competitive with peak natual gas alternatives. See htt://www.greenvolts.com to lear more about this company. A vista Utilties provides no financial support to Green Volts. Green Volts is working with another local Spokane firm to prototype design and help manufacture its device. For its field trals, Green Volts leased space from Avista Utilities at our Clean Energy Test Site for an initial ter of two years and payment of $50,000. Avista's Clean Energy Site is located adjacent to the Rathdrum Combustion Turbine in Idaho. This site was originally prepared to store oil for use in the combustion tubines and to provide soil for onsite landscaping, but it has remained unused since the plant's completion. With utility grade fencing and other services already in place, this site provides an economic location for field testing renewable energy systems to help tenants and A vista understand performance, cost and operational issues. The incremental cost to provide site servces and utility interconnection are fuly compensated by the lease fee. Avista Development, Inc., is a non-utilty subsidiar of the company. In May 2007, Avista Development loaned $200,000 to Green Volts, Inc. under a converible promissory note and executed a Propery Lease and Conditional Use Agreement, by and between Avista Utilties and GreenVolts. In November 2007, Avista Development invested $500,000 in Seres A Preferred Stock in Green Volts and converted the $200,000 promissory note to Series A Preferred Stock. This investment represents approximately 3% ownership in GreenVolts. Based on ths, Green Volts is not an affliated interest of A vista. . . . AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO A VU-E-08-01 / A VU-G-08-0l IPUC Production Request Staff-1 12 DATE PREPARD:WISS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/08 Don Kopczynki Chrstine McCabe Community Development (509) 495-7979 REQUEST: For each of the past four calendar years (2004-2007), please provide the total dollar amount contrbuted to Project Share by: a) Avista's shareholders; b) Avista's employees; c) contrbutions from Idaho customers; and, d) other sources. RESPONSE: a) Avista shareholders contrbuted the following to Project Share durng the past four calendar years: 2004 2005 2006 2007 Company Total $215,000 $215,000 $565,000 $215,000 Idaho Portion $50,000 $50,000 $100,425 $50,000 b) A vista does not track employee donations. c) Project Share contrbutions by Idaho customers: 2004 $ 71,786 2005 $ 73,304 2006 $ 66,508 2007 $ 62,978 d) "Share the Warth" is a program designed by A vista to raise awareness and fuding for Project Share. It is a special coffee blend and gift basket line provided in parership with local businesses. A percentage of sales are donated to Project Share. Each item contais information about Project Share as well. Share the Warth proceeds (Total Company): 2006 $3400 2007 $2380 . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-0l / A VU-G-08-0l IPUC Production Request Staff-l 13 DATE PREPARD:WISS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/08 Don Kopczyski Chrstine McCabe Communty Development (509) 495-7979 What was the total dollar amount received by Avista's Idaho customers from Project Share in each of the past four calendar years (2004-2007)? RESPONSE: Total dollar amount received by Avista's Idaho customers from Project Share: 2004 $175,305 2005 $182,104 2006 $305,700 2007 $174,314 . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-0l / A VU-G-08-0l IPUC Production Request Staff-115 DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/08 Don Kopczynski DJ Kinservk Customer Serce (509) 769-1314 Have the duties of Avista's CARS (Customer Assistance Referral and Evaluation Serce) Representatives changed since 2004? If yes, please elaborate. RESPONSE: The primar change made to the responsibilities of the CARS Representative is that the Company networked CARS calls for our entire service tertory. A vista has three CARS Representatives in a phone queue. When a call comes into the queue, the call goes to the next available CARS Representative. This has assisted us in providing better availability of CARS to customers and agencies. This has also assisted in a balancing workload for CARS. The development of ths queue has increased the knowledge of our CARS Representatives as they are familiar with processes, requirements and resources for our entire service terrtory. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-0l / A VU-G-08-0l IPUC Production Request Staff-l 16 DATE PREPARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/02/2008 Don Kopczynski DJ Kinservk Customer Service (509) 769-1314 Are the A vista CARS representatives stil sponsoring the "We Personally Care" program? If so, in 2007 how many pounds of personal care items were collected and distrbuted to low-income famlies? RESPONSE: Avista's Coeur d'Alene, Idaho CARS Representative remains the Company's key contact for "We Personally Care." While the program did not tae place in 2007 due to scheduling conflcts in the spring of the year, it is hoped that it will be implemented in the fall of 2008, if coordination comes together as planed with the local churches.