20090422AVU to Staff 96.pdf

Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
;"1!: C \:
J.~'V'STA.
Corp.
1069 APR 22 M110= 12
April 21, 2009
Idaho Public Utilities Commission
472 W. Washington
Boise, il 83702-5918
Attn: Donald Howell & Krstine Sasser
Deputy Attorneys General
Re: Production Request of the Commission Staff in Case Nos. A VU-E-09-01 and
A VU-G-09-01
Dear Mr. Howell and Ms. Sasser,
Enclosed are an original and two copies of Avista's response to IPUC Staffs production
request in the above referenced docket. Included in this mailing is Avista's response to
production request 096. The electronic version of the response was emailed on 04/21/09 and is
also being provided in electronic format on the CDs included in this mailng.
Please also note that, per our discussion with Donn English, Avista is requesting an extension for
Production Request 107.
If there are any questions regarding the enclosed information, please contact me at (509) 495-
4546 or via e-mail at j oe.miler(favistacorp. com
s~.~....
~----_..L
Joe Miler
Regulatory Analyst
State & Federal Regulation
Enclosures
CC (Paper):The Energy Project (Roseman)
WUTC Staff(Trautman- 3 copies)
ICND (Schoenbeck, Van Cleve)
Public Counsel (fftch)
CC (Email):The Energy Project (Roseman, Eberdt)
Public Counsel (fftch, Johnson, Wiliams)
WUC Staff (Trautman)
ICND (Schoenbeck, V an Cleve)
.
.
.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
AVU-E-09-01 / AVU-G-09-01
IPUC
Production Request
Staff-096
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
04/20/2009
Dave DeFelice
Ted Horobiowski
Manager Fleet Services
[phone]
REQUEST:
Please describe the Company's guidelines and justification for replacement of $9.6 milion in
transportation equipment. Please include any economic analysis used to justify the project.
RESPONSE:
A vista deterines the replacement of a company vehicle based on a combination of the age of the
vehicle, the mileage or cumulative hours of operation, the general condition, repair history and repair
requirements of the vehicle.
A vista follows a general guideline of the total life expectancy of vehicles, expressed in either total
mileage life or total hours life. These guidelines have been established though interal deparental
experience as well as informal benchmarking with other utilities as to their replacement practices as
welL. Other factors included in selections of individual vehicles for replacement are safety, reliability
and intended use for the foreseeable futue. Page 1 ofStafCPR_096-Attchment A shows a matrx
that compares benchmarks Avista to other utilities in the region (including Puget Sound Energy,
Snohomish County PUD, and Portland General Electrc). Page 2 of StafCPR_096-Attachment A
shows "A vista Utilities Vehicle Replacement Matrx"
The intention of the replacement practice is to minimize life-cycle costs of ownership by attempting
to avoid large-scale repair practices that would not result in sufficient life extension of vehicles.
Optimally, vehicles would be replaced prior to major repair expenditues, but after a suffcient level
of usage (mileage or hours) have been accumulated commensurate with industr averages.
Using the data which was provided in "StafCPR_096-Attachment A", the Company conducts fuer
analysis to deterine which transportation equipment meet replacement criteria.
"StafCPR_096-Attachment B" shows that there is roughly $31 milion in transportation equipment
that meet that critera. Of that, "Staff PR 096-Attachment C" shows a detailed listing of the $9.6
million in transportation equipment approved in the 2009 budget.
In 2009, a new program, Asset Works, wil be deployed which for the first time wil give the
Company the ability to use on-line softare to capture maintenance costs from our remote areas. The
ability to track transportation maintenance costs from all of our offices wil be used to determine the
life cycle costs of individual pieces of equipment. The cost of ths program ($600,000) has not been
included in this case.
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Avista Utilties Vehicle Replacement Matrix
45,46 Pickups 174 Miles 132,241 11,386
47,48 Service Trucks 113 Miles 150,000 13,791
56 Support Crew 117 Miles 150,000 8,050
67 Arial c: 40f 57 Miles 180,000 15,445
68 Arial;: 40ft 30 Hours 10,000 635
55,58,66 Heavy Trucks 71 Hours 10,000 580
57 Dump/Flatbed 28 Miles 180,000 12,500
76,85 Excavating 136 Hours 7,147 215
77,78,79 Specialty 25 Hours 10,000 600
86,87 Trailers 292 Months 240 12
65 Heavy Road 4 Miles 300,000 17,826
1047
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StafCPR_ 096-Attachment A.xls Page 2 of 2
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