20090430AVU to Staff 107.pdf

Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
EECl:
~~~'V'STA'
Corp.
20U, APR 30 9: 1l3
April 29, 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 Stafls production
request in the above referenced docket. Included in this mailing is Avista's response to
production request 107. The electronic version of the response was emailed on 04/29/09 and is
also being provided in electronic format on the CDs included in this mailing.
If there are any questions regarding the enclosed information, please contact me at (509) 495-
4546 or via e-mail atjoe.miler(£avistacorp.com
~~
J e Miler
Regulatory Analyst
State & Federal Regulation
Enclosures
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A VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-107
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
04/28/2009
S. Morrs/D.lCopczynski
Liz Andrews
Corporate Development
[phone]
REQUEST:
Given the current and near-term economic conditions in your northern Idaho service terrtory, what
actions or specific measures has the Company undertaken to reduce costs and mitigate the requested
rate increase?
RESPONSE:
Although the current and near-term economic conditions are at the forefront of everyone's minds,
Avista has focused on managing its costs to mitigate rate pressure over a much longer period of time.
Following the energy crisis of2000/2001, Avista, among other things, cut its operating expenses and
reduced capital spending.
Since that time, as we worked toward regaining an investment grade credit rating, we have continued
to pay paricular attention to limiting the growth in these costs, and A vista continues to run its
operations with attention to minimizing expenses, while meeting important reliability and
environmental compliance requirements, and preservng a high level of customer satisfaction.
COST MAAGEMENT AND EFFICIENCY EFFORTS
Both recent and historical examples of cost management and efficiency efforts follow:
Limtations on Capital Spending
. A vista approved a lower capital budget than was requested for the Company's Engineering
and Operations personneL. The original capital projects requested for approval for completion
in 2009 consisted of projects totaling over $269 milion. The Capital Prioritization Committee
reduced the list of projects recommended to be completed by $60 milion to the $210 milion
capital budget approved by the board.
. After approval by the Board, the Company decreased its capital budget spend an additional $8
milion (from $210 milion down to $202 milion) as follows: $2 milion decrease in electrc
customer hookup costs (ER 1000) and $6 milion decrease in distrbution transformers due
primarly to fewer transformers for new customers (ER 1003). Both of these ERs are par of
the revenue producing capital that was excluded from the Company's filing, thus has no
impact on the capital requested in this case.
The majority of capital spending included in the Company's $158.1 milion system (the
Company excluded $47.5 millon of revenue producing capital) are for activities that are being
constrcted to meet compliance requirements (such as NERC, mandatory reliability standards,
environmental compliance, etc.), improve system reliability and service to our customers,
replace broken or aging equipment, and/or provide avoided cost savings in the future.
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Response to Staff Request No. 107
Page 2
Salaries & Benefits
. Since the filing of the Company's direct case, Avista provided no salar increases for officers
for 2009, and reduced the Company's non-officer average salary increase planed for 2009
from 3.8% to 2.5%.
. Retirees are now picking up the full premium increases on the health insurance coverage. A
few years ago retirees under age 65 were paying 10% of the health insurance premiums and
now they pay 50% on average.
. The Defined Benefit Pension Plan's benefit formulas were reduced (approximately 28%) for
all new hires effective January 1, 2006 and forward. Ths applies to all new hires except those
in the mEW Local #77 Bargaining Unit.
. Bargaining units wages are competitive with neighboring investor-owned utilities and PUDs.
See attachment Staff PR 107-Attachment A.xls.
Hiring Restriction
. The Company is curently operating under a hiring restrction which requires approval by the
Chairman, President & CEO, CFO, and Sr. VP for Human Resources for all replacement or
new hire positions.
Operations Personnel
Employee positions in Energy Delivery Operations were reduced by 52 from the 2009 budget. (2009
budget: 958 versus Actual April: 906). Ths reduction is a combination of not bringing back
temporary employees, not fillng behind vacancies, and not filling new requested positions.
. Normally we bring on about 15 to 18 temporary groundman in April to assist in the
constrction work for the remainder of the year. This pool of people helps us manage through
the constrction season with new developments that take place from April to December, or
when the weather shuts down constrction, and establish a pool of line apprentices. We use
ths pool of people to select upcoming line apprentices in anticipation of futue retirements.
Due to the down turn in the economy and the lack of new constrction projects, the Company
decided to not hire temporary groundsmen for the year unless a specific project would dictate a
need for one or two people. The saving for 2009 is about $700,000. Assuming a more normal
construction season in 2010, we wil be back to our normal practice and bring on the
groundman for the construction season. Therefore, the savings to the company is short term
versus an anual on-going savings.
. We have maitained our gas and electrc constrction workers at 2004 levels. From 2004
though 2006 A vista saw significant increases in the number of gas and electric servces. From
2006 to today, we have seen a reduction of approximately fifty-percent in the number of new
gas and electrcal serces. By maintaining the staffing at 2004 compliment levels we have
shifted the upward and downward trends in workload to our contractors. Today,
approximately fifty percent of our construction work is done by contractors, eliminating the
impact of the reduction in the number of new services to A vista construction employees, and
reducing fixed costs durng slow times.
. Additionally, regarding our gas operations, approximately 10% of our gas constrction
workforce are classified as "seasonaL" Seasonal and temporary employees are let go at the
end of the constrction season and brought back in March or April as constrction stars to
ramp up. In 2009, we delayed bringing back these employees due to the down tu in
constrction and won't re-employ these workers unless constrction activity improves. Again,
these saving wil occur in 2009 and is not anticipated to car over into 2010 unless the
economy and constrction continues to be slow.
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Response to Staff Request No. 107
Page 3
In managing the AM Project we have been very successful in placing Idaho meter readers
into other jobs as they came open, such as apprenticeship vacancies. This has minimized
unemployment costs and severance costs. We are now down to just one Idaho meter reader.
Staring in 2007 the Company has:
o Shortened the gas apprenticeship time by 12 to 18 months by bringing in advance
standing employees who already have the skils and abilities;
o Reduced the anual gas refresher training required by PHMSA for Operator
Qualification through the use of on-line training programs by one full day, and
eliminated additional instrctor travel time and expense during the remainder of the
year. Estimated savings are approx 150 gas employees at 8 hours. The trainer savings
for the remainder of the year is 20+ travel days for each of the instructors;
o Combined different apprentice training programs in the generation and electrc areas
to save over 100 hours of instrctor time;
o Utilzed retired craft employees for pre-apprentice line school and other apprentice
program training, saving benefit costs and utilizing flexible hours;
o Provided an on-site physical therapist to shorten medical treatment time for
employees as well as reduce time away from work for medical appointments.
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Savings associated with these efforts which stared in 2007 are reflected in the Company's
test period.
.The Company has increased shift coverage company-wide for Gas and Electrc Servicemen
for after (normal) hour's calls. This provides for more prompt call response at lower cost
(straight time versus overtime).
We have prioritized 0 & M facility maintenance and improvement projects and removed
projects that could be delayed without safety or operational concerns...
Power Supply
. A vista took the initiative to qualify some of its Spokane River Projects as certifed renewable
resources under California guidelines. A vista is now selling the "green tags" from these
projects to California utilities at a premium. The additional value included in this rate case for
customers from these sales is $5.8 milion on a system basis.
. Avista took the initiative to investigate and join the Chicago Climate Exchange, which has
allowed Avista to sell carbon excess credits though the Exchange. We are curently flowing a
total of $0.9 milion back to Idaho customers over a two-year period as a result of this effort.
. A vista has taken the initiative to seek out opportities to sell load following and other
ancilary servces that would benefit our retail customers. Current benefits to customers from
these efforts are $4.9 milion on a system basis.
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Generation and Production
. Avista has added substantially (313 MW to its generation base over the past ten years, has
added ten new substations over roughy the same period, and has assimilated increased work
necessar to support many new requirements that are par of new hydro relicenses and
increased workload associated with FERC, NERC, and WECC formalized compliance
protocols, yet though careful management Avista has kept staffing at a level just slightly
below the staffing level at the end of 1999. A couple of specific examples include:
o Coyote Springs 2 (280 MW): A combined cycle combustion turbine with 280
megawatts of generation was added. A vista contracted with Portland General Electrc
to operate its project, which allows PGE to operate the combination of their own
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Response to Staff Request No. 107
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Coyote Springs 1 and Avista's Coyote Springs 2 together as one project with
substantial staffing and cost savings.
o The Boulder Park Generating Station (24 MW) and the combined cycle generation
added to lCettle Falls Generating Station (9 MW) were both added to the generation
portfolio with the net addition of a single plant operator.
o In 2000, Avista had 158 substations, while at the end of 2008 Avista had 168
substations. With the addition of 10 substations no additional field staff was added to
perform the maintenance work.
o In 1999, the Clark Fork River Project was relicensed. There are PM&E requirements
that must be adhered to. These engineering requirements are supported by A vista's
Generation Engineering Deparent with no additional staffing.
Customer Service
A vista has a number of ongoing process improvement measures related to customer service that have
provided savings and effciencies as described below.
.Avista's Customer Service Analyst Team constantly challenges themselves to find ways to
improve the business without compromising Customer Satisfaction. Initiatives such as
automating address retus with the US Postal Service, reviewing collection notice
parameters, implementing email management processes, improving system response time,
designing a comprehensive screen view, ebil promotions and other miscellaneous
improvements resulted in over $1,000,000 of productivity savings from 2004-2007.
Examples included withi the $1 milion in savings include options that give customer more
choices such as:
o E-bil- 59,370 customers enrolled - Savings $.50 per bil per month.
o Web payment process - reduced company cost from $.80 to $.10 per transaction -
45,000 transactions per month.
In 1997 A vista implemented its Interactive Voice Response (IV) system as a method to
handle customer calls related to outages. The system had the ability to speak recorded
messages based on the customers input of their zip code and the ability to query the customer
about their outage with the end result being a trouble ticket to our Central Dispatch
deparent. Since its initial inception for outage management, we've also added additional
self-serve options that include account recap, payment by phone, locations to pay their bil,
locations to find energy assistance and payment arangements. Outage management has also
matued as the IVR is now integrated with our Outage Management Tool and speaks messages
based on the outage at their premise rather than outages for an entire zip code, and provides the
customer with a prediction of when the power wil be restored. In 2009, Avista wil be
replacing the curent IVR with another that offers speech recognition. The new IVR wil
replace the current fuctionality and wil offer several new self-service transactions, such as
the ability to sign up for Avista's Comfort Level Biling program and Automatic Payment
Service. They wil also be able to report when they've made a payment and be able to close
their account, open a new account or transfer their account to another address. Enhancements
to curent self-serve options include the ability for greater negotiation when making a payment
arangement and more detail in recapping the customers account information. Customers
using Avista's IV self-service options enjoy 24 x 7 access to their balance, payment
information and common transactions. There is no need to wait in queue to speak with a
customer serice representative to conduct business. In outage situations, over 160 concurrent
customers can report their outage or hear an outage message relevant to their location.
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Response to Staff Request No. 107
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The following table shows the avoided labor savings from the IV system from 1997 though
2008 totals $14.7 milion:
1998 84,889 5.1 $270,416 Added Account Recap self-service
1999 158,353 9.6 $504,437
2000 214,828 13.0 $684,339
2001 294,609 17.8.$938,483 Added Payment Arrangement self-service
2002 343,120 20.7 $1,093,016
2003 443,195 26.7 $1,411,807 Added Electronic Payment self-service
2004 402,071 24.3 $1,280,805
Enhanced Payment Arrangement
2005 530,748 22.0 $1,854,079 self-service
2006 600,730 34.2 $2,098,550
2007 624,823 30.5 $2,182,715.2008 682,797 36.2 $2,348,822
2009 unknown unknown unknown New IVR Implementation
Information Services:
In regards to Information Services, Avista has been and continues to be focused on cost effective
solutions that meet our customer needs. One way to meet a growing customer demand for transaction
choices is through the appropriate use of technology. Over the past several years, A vista has focused
on reducing customer transaction costs though the use oftechnology. Several of
those initiatives are
described in the Customer Servce and Operating sections of this document. Along with meeting
customer needs though the use of technology, A vista continuously works to minimize the cost of
back offce technology and maximize employee effciency with the use of appropriate technology.
Some examples of this follow:
. In 2002, A vista engaged Gartner Measurement Services, a global technology benchmarking
company to conduct a benchmark study. Some quotes from this detailed analysis were as
follows:
"At a sumar level, total costs for the functions measured are 27% lower than what the peer
group would expect to spend to support the same workload."
"There is a large difference between the results for Applications Development and Support
and the results for Infrastrctue Services.
Applications Development and Support costs are 49% lower than the peer group
Infrastrctue costs are 4% lower than the peer group."."Retained Costs
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Response to Staff Request No. 107
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Costs retained by Avista are 4% above the top quarile and 33% below the peer
average."
.After these favorable benchmark results, A vista continued to drive down technology operating
costs through centralization of services, outsourcing, reduction of custom deliver options and
infrastrcture consolidation. During the period of 2002 through 2005, the Information
Servces operating costs at Avista were reduced by nearly 25%. Today, in 2009, the
Company's is operating cost level is nearly at the same level as 2002.
Since 2002, A vista's efforts to meet customer needs with appropriate technology have yielded
(some of which is described fuher thoughout this document, or within the Company's direct
filed testimony):
o Automated Meter Reading networks and associated technical support for Idaho,
o Outage Management and Constrction Design applications improving efficiency of
operations and improving customer satisfaction,
o Advanced the mobile workforce and field automation with Mobile Dispatch, Digital
Maps and Wide Area Wireless Networks,
o Business Intellgence softare for analyzing costs to gain efficiency in service,
o eBusiness staring with a new web site that offers numerous new ways for customers
to transact and interact with A vista,
o Supply Chain automation improving efficiency and purchasing costs,
o Human Resource and Payroll applications that improve employee efficiency,
o Field and Workforce automation though the use of mobile technology such as laptops
and wireless networks,
o A new PBX phone system that improved call routing efficiency for improved
customer service,
o Implemented an Energy Resource Optimization system that was previously used at
A vista Energy resulting in improved visibility and deal capture for the purchase of
energy,
o Implemented a new Integrated Resource Planing system resulting in improved
modeling for energy needs,
9 Replaced the legacy Financial Systems that were originally installed in the late 1980's
with a new financial ERP system, improving compliance and employee efficiency,
o Implemented an Enterprise Business Continuity/Disaster recovery program for
critical systems.
All of the above mentioned systems, many of which never existed, are being operated at nearly the
same operating costs that the 2002 benchmark analysis indicated were top quarile. While the cost of
hardware has declined since 2002, the cost of applications, integration, labor, the number of
applications and data has all increased.
.In 2004, Avista re-negotiated its technology outsourcing agreement with EDS. The result of
the new agreement was a reduction in fees totaling nearly $1.4 milion per year.
In 2005/2006, Avista replaced its legacy PBX phone system which reduced circuit costs while
improving call routing and agent effciency resulting in improved customer satisfaction.
In 2006/2007, A vista implemented Voice-Over-IP yielding significant savings in telephone
circuit costs.
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Response to Staff Request No. 107
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In 2008, Avista moved to virtalized technology for fie servers in our data center. Though
the use ofvirtalization server technology, Avista has avoided nearly $900,000 in new capital
costs for file and application servers.
In 2008, Avista renegotiated our contract with cell phone carers and moved to a "pooled
minute" plan. The results are a more effcient use of available cell time and an anualized
reduction in costs of approximately $84,000 per year.
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All ofthese programs and savings described above have been included in the Company's test period.
In 2009, Avista's is Deparment continues to look for efficiencies as shown by the following
improvements:
o A vista changed the technology and electronic payment service providers reducing the
anual expense for this service by approximately $240,000.
o Avista moved to a new customer 800# agreement with AT&T. The new approach
utilizes inter-state tarffs rather than intra-state tarffs reducing the overall cost by
approximately $50,000 per year.
o A vista is working with its major contract service providers to reduce their fees. The
results of these negotiations wil not be known until later in 2009.
In 2010, through the migration away from the use of magnetic tape for data backup and recovery,
A vista should yield anualized savings of nearly $200,000 in avoided future magnetic tape costs and
associated labor for backing up the file and application data.
The 2009 estimated savings have not been pro formed into the Company's case..Other Examples of Savings:
As furter ilustration of the Company's attention to cost control, as described in Mr. Morrs' direct
testimony, staing at page 8, the Company has also completed a number of cost-cutting and
effciency measures that have been undertaken in an effort to continue to mitigate the overall cost
impacts to our customers. The measures listed below are among some of the most recent actions we
have taken to mitigate the impact of increased costs on our customers:
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Delayed the Reardan Wind Project. We have recently delayed the construction of the $125+
milion Reardan Wind Project to 2013, due, in par, to the curent high cost of
wind turbines and
other materials.
Cancelled Ross Cour Office Space. Avista's main office building was constrcted in 1958, and
expanded in 1978. Even though Avista's ratio of the number of customers served per employee
continues to increase, we have needed additional offce space for some time. In 2008, in order to
reduce costs, we cancelled plans to build additional office space adjacent to the main offce, and
instead chose to remodel existing space formerly used by Horizon Credit Union nine miles from
the main offce.
Outsourced Biling and Disaster Recovery. A vista recently contracted its bil printing and mailing
servces with an offsite provider and at the same time complying with requirements related to
disaster-recovery for biling data. The objectives were to move bil printing, inserting and
mailing offsite and leverage core competencies of the provider, to obtain disaster recovery and
avoid the cost of duplicate data storage, ensure daily print volume flexibility, and reduce the cost
of our biling operation.
Additional On-line Service Offerings. In January 2008, the Company completed the redesign of
ww.avistautilities.com. The primar objectives ofthis project were to lower costs and enhance
customer satisfaction through the deployment of additional self-servce options, such as
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Response to Staff Request No. 107
Page 8
open/closelmove, reporting and makng payment arangements, enrolling in Comfort Level
Biling, and/or Automatic Payment Service (APS). Customers also have access to tools to help
analyze their bils and are provided with meaningful information to make informed energy
management choices. The cost-saving objective over time is to achieve a 10% reduction in the
Company's Contact Center total call volume, which results in lower staffng and lower costs to
customers. As of the end of 2008, the Company estimated calls handled by CSRs were reduced
by 7.81 %, which equates to 73,825 calls to CSRs avoided in 2008. Since these operational
savings occurred durng 2008 they would already be reflected in the Company's test period.
Avista is constantly looking for improvements in the way it provides services to its customers, as well
as ways to reduce the costs of those services. As explained in detail in Mr. lCopczynski's direct
testimony, below are a few of the additional cost-saving initiatives in progress or completed by the
Company:
.Mobile Dispatch. In 2006 the Mobile Dispatch Project was deployed to all natual gas
servcemen. Ths project achieves a number of financial and customer service benefits, including
increased productivity, enhanced customer service, reduced costs, and improved field safety.
This project uses wireless communications between the home office and laptop computer in
servce trcks to dispatch field crews. These capabilities allow for effcient order dispatch,
enhanced customer service with effcient order booking, improved safety, and reduced costs to
perform the work. An additional benefit realized from the use of mobile dispatch is the Periodic
Meter Change Out program (PMC). Orders requiring premise visits are "tagged" if the meter is
eligible for PMC, saving duplicate visits. This has provided approximately $252,000 in savings
through 2008. Savings associated with this project have already been included in the Company's
test period. The Mobile Dispatch project deployment for electrc servicemen is planed for 2009.
Outage Management. The Outage Management tool (OMT) is linked to the Company's
Geographic Information System (GIS mapping system). It allows the Company's distrbution
facilities to be linked to individual customer servce points in a computer based modeL. The
connectivity provides tools to determine outage areas and affected protective devices. Accurate
outage data can be collected for all incidents providing feedback to improve reliability and outage
statistics which can be monitored in real time to indicate the severity of major events and assist in
resource planing. These capabilities allow for quicker restoration of electrcal service for our
customers, thereby reducing labor expenses and enhancing customer service. A vista curently
does not have the means to quantify the reduction in time that the OMT has provided to isolate
problems and restore servce; however, in general the OMT is estimated overall to save
approximately 2 to 4 hours each day pedorming restoration of service on normal 1 daily outages.
For extended storm related events that last 2 or 3 days in duration, it is estimated that OMT saves
an average of 24 hours in restoration time (a reduction of approximately 25-33% in restoration
time.) This is estimated to total approximately $1.3 milion annual savings. This estimated
savings would already be reflected in the Company's test period filed in this case.
Regional Infrastructure Efficiency. Prior to the construction season each year, Avista, in
partership with the City of Spokane, hosts Spokane's Joint Utilities Coordination Council to
bring together regional municipalities, utility companies, telecommunications providers, sewer,
water and the railroad to coordinate constrction activities. Municipalities and utilities share their
project plans and schedules so as to increase the coordination and mitigate the risk of unown
projects. The efforts of the Joint Utilities Coordination Council have resulted in greater
coordination and efficiencies across the Spokane region.
Transmission Outage Scheduling. Avista recently deployed a custom software application which
provides the Company with the ability to manage the scheduling of planed outages for
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Response to Staff Request NO.1 07
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transmission lines and line segments. Previously, transmission outages were requested via phone
or email and were tracked via a spreadsheet. Requests for outages can now be submitted
electronically via a web page, which can then be either approved or rejected by the system
administrators. Ths improvement to the system has reduced operator time, streamlined the
scheduling process, and ameliorates any errors. This project was completed at very little cost to
the Company at approximately $15,000 in November 2008.
. Asset Management Program. Avista has assigned two full-time engineers to the formal Asset
Management program. These individuals are responsible for gathering information, prioritizing
work and executing efforts to best meet the Asset Management mission. The engineers utilize a
statistical Reliability Centered Maintenance (RCM) software package to analyze data. This
software allows detailed analysis of the impacts of increased or decreased reliability based on
system configuation and component reliability. Mr. l(nney's direct testimony describes the
programs, benefits and savings associated with these programs. One example includes the
Underground Cable Replacement program. Over 6 milion feet of unjacketed underground cable
was installed prior to 1982; it has been subject to a replacement program since 1984. After 2008,
there wil be approximately 750,000 feet ofpre-1982 cable stil left to be replaced. In 2008, there
was approximately $920,000 of savings associated with these efforts.
. Onsite Energy Effciency Projects. A vista has completed numerous small energy efficiency
projects that have resulted in energy conservation at company offices and servce centers.
Following are some examples:
o Passenger elevator upgrade
o Service elevator upgrade
o Appliance replacement
o Compressed air system
o HV AC system control valve
o Varous lighting improvement projects (LED, exit signs, etc.)
o HV AC controls - Coeur d Alene Servce Center
o Motors and Controls
o A total of 28 projects were completed since 2005. Total kWh saved are 3,197,594 and
total therms saved are 47,828. Savings associated with these projects are reflected in the
Company's test period.
o In 2007, Avista initiated a multi-year HV AC renovation at its headquarers facilities in
Spokane. The project is needed to replace equipment that is now 50 years old. Present
estimates indicate cost savings of $432,000 per year in energy use, a 36% reduction in
energy costs once all phases have been completed, tentatively planed to be completed in
2013. The project wil also achieve asbestos abatement and life safety (fire sprinkler)
additions. To date, two projects within the service building completed in 2007 have
produced approximately $54,100 in anual savings (these dollars are reflected in the test
period). In addition, the remaining servce building projects, cafeteria and auditorium
have been completed (at December 2008) with energy savings estimated at $95,000 (these
dollars are not reflected in the test period).
CUSTOMER RATE IMPACT MITIGATION EFFORTS
In addition to the many efforts the Company has made to reduce costs and improve operating
effciencies, the Company works hard to build lasting ways to help mitigate or ease the burden of
energy costs. Avista is committed to reducing the burden of energy prices for our customers most
affected by rising energy prices, including low income individuals and families, seniors, disabled and
vulnerable customers. To increase our customers' ability to pay, the company focuses on actions and
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Response to Staff Request No. 107
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programs in four primary areas: 1) advocacy for and support of energy assistance programs
providing direct financial assistance; 2) low income and senior outreach programs; 3) energy
efficiency and energy conservation education and 4) support of community programs that increase
customers' ability to pay basic costs ofliving.
Customer Assistance Programs
These programs include:
· Energy Assistance Programs:
o LIHAP: Avista provides advocacy for LllEAP, the federally-fuded Low Income Heating
Assistance Program (LIHAP), through involvement in national industr organizations and
direct legislative advocacy. Avista's Idaho customers benefited from the 2008-09 heating
season increase in LllEAP allocations and as of April 2009 (season not complete), received
$3.3 milion in LllEAP grants compared to $2.1 milion in the entire 2007-08 heating season.
Avista is an active paricipant on Idaho's LllEAP stakeholders group, a group of parer
organizations that convene on a regular basis to improve the effectiveness of the delivery of
LllEAP to eligible customers.
o Project Share: Avista has also actively supported Project Share, the fuel-blind emergency
assistance fund, though corporate contrbutions and promotions to customers. Recognizing
the impacts of energy prices and a very hard winter, A vista contrbuted an additional amount
of$86,550 in 2008-09 over its regular $50,000 corporate contribution for a total of$136,550.
Avista also increased its promotion of Project Share in the 2008-09 heating season.
Preliminar year-to-date results show that customers have contrbuted $20,000 more through
April 2009 compared to the same period in 2008 for a total of $100,727 (Idaho receives
$31,125). As of April 2009 (season not complete), Idaho customers have received $141,213
in Project Share grants compared to $105,086 in the entire 2007-08 heating season.
o LIR Advocacy: A vista has been a long-time advocate of utiliy-sponsored energy
assistance programs as evidenced by its LIR (Low Income Rate Assistance Program) in
Washington and Oregon, a program that provides a combination of financial assistance
programs (heating, emergency and senior) and energy conservation education. Avista was an
active paricipant in the IPUC Affordability Workshops and took the lead for introducing the
state legislation needed to support the creation of utility-requested energy assistance
programs. Though the effort was not successful in the 2009 legislative session, A vista is
committed to continuing to provide the lead in future sessions.
· Low Income and Senior Outreach Programs: The Company offers a range of programs to help
customers who are least able to pay their utility bil and provides targeted outreach to educate
customers in accessing available programs.
· CARS: The Company's Customer Assistance Referral and Evaluation Services (CARS)
provides assistance to special-needs customers through access to specially trained CARS
representatives who provide referrals to area agencies and churches for help with housing,
utilities, medical assistance, etc.
. Gatekeepers Program: A vista has implemented the Gatekeepers Program, a program that trains
field personnel to be aware of signs that a customer may be having difficulty with daily living
tasks (i.e. paper or mail not collected, disheveled appearance, etc). The CARS representatives
conducted training of company-wide field personnel who come into contact with residential
customers on a regular basis. In the event employees identify a customer having diffculty, the
employee is asked to notify the CARS representatives who would contact appropriate
community resources for assistance.
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Response to Staff Request No. 107
Page 11
Senior Energv Outreach: Avista has developed specific strategic outreach efforts to reach our
more vulnerable customers (seniors and disabled customers) with bil paying assistance and
energy efficiency information that emphasizes comfort and safety.
Senior Publications: Avista has created a one-page advertisement that has been placed in senior
resource directories and targeted senior publications to reach seniors with information about
energy effciency, Comfort Level Biling, A vista CARS and energy assistance. A brochure with
the same information has also been created for distrbution through senior meal delivery
programs and other senior home-care programs.
Power to Conserve: In parership with ICM television, a half-hour television program is
anually developed that covers low-cost and no-cost ways to save energy at home. The goal of
the program is to help limited income seniors and other vulnerable populations with their energy
bils by providing home energy conservation education. The program provides helpful energy
conservation tips, information on communty resources and ways for customers to manage their
energy bils. A Dvn of the program has also been produced which is included as par of energy
conservation kits provided in senior conservation workshops.
Senior Energy Workshops: Energy effciency workshops that focus on comfort and safety as well
as the wise use of energy have been specially designed for the senior population. l(ts are
provided that contain energy-saving items such as compact fluorescent light bulbs, draft stoppers,
rope caulking, etc. The Power to Conserve program Dvn along with energy efficiency tip sheets
are also included in the kit. Workshops are held at senior meal sites, senior centers and other
senior support locations.
ICQ.com. - Caregivers Resource: Avista sponsors the Caregivers Resource page on ICQ's
Senior Life website in order to reach seniors and caregivers with a wide varety of resource
information including energy efficiency, energy assistance information, Avista CARS, bil
paying assistance, etc. Several video clips offer low-cost, no-cost energy saving ideas.
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Energy Efficiency & Energy Conservation Education:
. In parership with Community Action Agencies, Avista offers low income energy efficiency and
weatherization programs and Energy Conservation Education for Limited Income Families and
Children.
. Avista has supported the creation of a position in parership with the Idaho communty action
agency through $25,000 in funding for the purose of expanding energy conseration education
to low income families in Idaho. The position has been filled and we are in contact with the
individual to work together as the programs are developed.
. In 2008, A vista expanded its energy conservation education program to include outreach to
children and families, with an emphasis on limited income families and children ages 4 to 8, with
the goal of adopting lifestyle habits of using energy wisely and efficiently. Wattson, Avista's
Energy Watchdog, along with his human pal Edison, attend community and school events to
share energy saving tips with their audience. The Company has developed a toolkit of collateral
materials, including fu worksheets and craft projects, to raise awareness of the power of
conservation to help the planet and teach kids easy ways that they can conserve energy. An
A vistalds.com website and television commercials have also been developed to reach this target
audience with conservation messages.
. In 2008, Avista participated in 21 community events thoughout nort Idaho. We staffed a booth
to engage customers with information about energy efficiency tips and we distributed no-cost and
low-cost energy saving measures. For example, we provided 7,860 compact fluorescent light
(CFL) bulbs at these events attended by an estimated 104,800 people. We provided low-cost and
no-cost measures, including 3,030 CFLs, to an additional ten organizations for their events.
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Response to Staff Request No. 107
Page 12
· A vista provided 4,868 residential rebates to residential nort Idaho customers in 2008, totaling
over $1,108,000. To an existing inventory of over 30 programs promoting over 300 measures, the
highlights of new programs A vista launched in 2008 included "second refrgerator" pickup and
recycling, "BuiltGreen" new construction, and CFL recycling sites for the safe disposal of CFLs.
Support of Community Assistance Programs
· A vista is actively involved in supporting community human services programs that provide tools
and resources for individuals and familes who face challenges in meeting the basic costs of
living, which often includes the cost of energy. Though philanthopic contrbutions and
employee community outreach efforts, we support programs that help increase financial stabilty
or provide basic resources like food .and clothing. Avista is a strong supporter of United Way in
Idaho, providing corporate and employee support for the human servces agencies in our servce
terrtories. We also provide valuable information in our customer newsletter on accessing EITC
(Eared Income Tax Credit), a federal tax credit targeting working families.
· Employees in our Idaho offices are active in communty outreach efforts that reach out to families
in need. Coeur d'Alene employees are instrmental in a food drive called Fil the Freezer.
Lewiston employees are active in the poverty abatement program called The Circles Initiative.
They also support the collection of donations of food and clothing for area agencies through
outreach programs in two areas, a school supply drive in parership with the NW Children's
Home and the YWCA, as well as food drves for the YWCA.
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