20121206Avista to Staff 61,75,77,80-84.pdf

I Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170 10: 09
iiVISTA
corp.
iDAHO PUi3UC
December 5, 2012
JT;L1nES
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83720-0074
Attn: Karl T. Klein
Weldon B. Stutzman
Deputy Attorney General
Re: Production Request of the Commission Staff in Case Nos. AVU-E-12-08 and
AVU-G- 12-07
Dear Mr. Klein and Mr. Stutzman,
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 061, 075, 077, and 080 - 084. The electronic versions of the responses were
emailed on 12/05/12 and are also being provided in electronic format on the CD included in this
mailing.
Also included are Avista's CONFIDENTIAL responses to PR 075C, 081C, 082C, and 083C.
This response contains TRADE SECRET, PROPRIETARY or CONFIDENTIAL
information 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 October 16, 2012. It is being provided under a sealed separate envelope, marked
CONFIDENTIAL.
If there are any questions regarding the enclosed information, please contact Paul Kimball at
[phone] or via e-mail at [e-mail]
Sincerely,
1L
Paul Kimball
Regulatory Analyst
Enclosures
CC: all parties
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 11/28/2012
CASE NO: AVU-E-12-08 / AVU-G-i2)? WITNESS: Scott Kinney
REQUESTER: IPUC RESPONDER: Warren Clark/Scott Kinney
TYPE: Production Request DEPARTMENT: System Operations
REQUEST NO.: Staff-061 TELEPHONE: [phone]
REQUEST:
Regarding the power factor penalties incurred by Avista due to reactive power violations at
interconnections to BPA (Kinney pg. 8, lines 10-23 and pg. 9, lines 1-3):
a.What is the BPA-required reactive power threshold?
b.Are there any potential reductions to power factor penalties at BPA interconnections
attributable to transmission capital projects scheduled for 2012 or 2013? See Kinney
pg. 29, Table 3 and pg. 42, Table 5. Please explain.
RESPONSE:
a.Staff _PR_061 Attachment A is an excerpt (BPA Power Factor Penalty Charge.pdf) from the
BPA 2012 Transmission and Ancillary Service Rate Schedules - General Rate Schedule
Provisions. This document describes how any party that is interconnected with the Federal
Columbia River Transmission System (FCRTS) shall be charged for its reactive power
requirements. In summary BPA customers are charged a power factor penalty at any
interconnection that has a lagging or leading power factor of less than 0.97 per unit and real
power from the customer's system never flowed into the Federal Columbia River
Transmission System for more than one an hour in a given month.
b.The Lancaster 230 kV Interconnection project scheduled for energization in the fall of 2013
will help reduce the loading on the Company's 230 and 115 kV transmission lines connected to
BPA's Bell substation in northern Spokane. The reduced line loading should also reduce the
reactive flow from BPA's Bell interconnection to Avista during peak load conditions.
However the current reactive charge for the Bell interconnection is only $274 per month.
None of the other scheduled capital projects in 2012 and 2013 are anticipated to reduce the
BPA power factor penalty.
C. POWER FACTOR PENALTY CHARGE
1.DESCRIPTION OF THE POWER FACTOR PENALTY CHARGE
Any party that is interconnected with the Federal Columbia River Transmission
System (FCRTS) shall be charged for its reactive power requirements as described
in this section, unless otherwise specified in an agreement existing prior to
October 1, 1995.
Each point of interconnection or point of delivery shall be monitored and billed
independently for determining the party's total reactive power requirements and
all associated billing factors, including the Reactive Deadband. If a party is taking
transmission service under multiple rate schedules, the party will pay for its
reactive power -requirements as if it is taking delivery under only one rate
schedule.
2.CONDITIONS FOR APPLICATION OF THE POWER FACTOR
PENALTY CHARGE
a.Measured Data
The Power Factor Penalty Charge will apply to only the party's reactive
power requirements for which measured data exist.
b.Party's Generating Resource Connected to the FCRTS
Irrespective of the direction of real power flow, the Power Factor Penalty
Charge shall apply to points of interconnection where a party's generating
resource is directly connected to the FCRTS, unless the party's generating
resource is either:
(1)a synchronous generator equipped with a voltage regulator, or
(2)equipped with reactive power control devices that comply with
BPA-TS ' s applicable interconnection standards.
Such resource must actively support the voltage schedule at the point of
integration at all times when the resource is in service, as determined by
BPA-TS, for this exemption to apply. Generating resources that do not
satisfy the above criteria shall not be exempt from the Power Factor Penalty
Charge.
Adjustments, Charges, and
General Rate Provisions Page 82
Staff—DR-061 Attachment A Page 1 of 4
C. Bi-directional Real Power Flow
For points other than those specified in section 2.b, the Power Factor
Penalty Charge will not be applied, and no new Ratchet Demand for
reactive power will be established, at a specific point if the metered real
power (on an hourly integrated basis) flows from the party's system to the
FCRTS at that point for as little as one hour during the billing period.
However, the party will still pay any previously incurred demand ratchet
charges. The direction of the real power flow will be determined based on
metered quantities, not on scheduled quantities.
d.Service by Transfer
Points of delivery that are served by transfer over another utility's
transmission system will not be subject to the Power Factor Penalty
Charge unless there are significant BPA-TS Network facilities between the
party's points of delivery and the transferor's system.
e.Specific Points Exempt from the Power Factor Penalty Charge
The Power Factor Penalty Charge will not apply to the following points:
Nevada-Oregon Border (NOB)
Big Eddy 500 kV
Big Eddy 230 kV
John Day 500 kV
Malin 500 kV
Captain Jack 500 kV
Garrison 500 kV
Townsend 500 kV
f.Special Circumstances
The party may submit requests to BPA-TS for consideration of unique
circumstances. BPA-TS will evaluate the request and may make
arrangements with the party to address the special circumstances.
3. RATES
BPA-TS will bill the party for reactive power at each point each month as follows:
Reactive Demand
$0.28 per kVAr of lagging reactive demand in excess of the Reactive Deadband
during HLH in all months of the year.
Adjustments, Charges, and
Page 83 General Rate Provisions
Staff—DR-061 Attachment A Page 2 of 4
$0.24 per kVAr of leading reactive demand in excess of the Reactive Deadband
during LLH in all months of the year.
No charge for leading reactive demand during HLH.
No charge for lagging reactive demand during LLH.
4. BILLING FACTORS
a. Reactive Deadband
The Reactive Deadband (measured in kVAr) is used to determine the
Reactive Billing Demand and Ratchet Demand for the Power Factor
Penalty Charge.
The Reactive Deadband for each billing period is the maximum hourly
integrated metered real power demand (measured in kW) at each point
during the billing period multiplied by 25 percent.
The Reactive Deadband for either HLH or LLH:
(I) is computed once per billing period (the same quantity is used for
both HLH and LLH),
(2)does not vary during the billing period, and
(3)is based on the maximum hourly integrated metered real power
demand during that billing period.
b. Reactive Billing Demand
The party's Reactive Billing Demand shall be calculated independently for
lagging reactive power and leading reactive power at each point for which
a Power Factor Penalty Charge is assessed.
All reactive demands shall be established in the particular HLH or LLH at
each point during which the party's maximum applicable reactive demand
is placed on BPA-TS, regardless of the time of the real power peak at each
point.
All reactive demand at each point shall be established on a non-
coincidental basis, regardless of whether the party is billed for real power
or transmission at such point on a coincidental or non-coincidental basis,
unless otherwise specified in the agreement between BPA-TS and the
Adjustments, Charges, and
General Rate Provisions Page 84
Staff—DR-061 Attachment A Page 3 of 4
party, or coincidental billing is, in BPA-TS's sole determination, more
practical for BPA-TS.
There will be separate reactive demands for lagging (HLH) and leading
(LLH) demands. The party's Reactive Billing Demand for each point for
the billing month shall be the larger of:
(1)the largest measured reactive demand in excess of the Reactive
Deadband during the billing period, or
(2)the Ratchet Demand for reactive power.
The Ratchet Demand for reactive power is equal to 100 percent of the
largest measured reactive demand in excess of the Reactive Deadband
during the preceding 11-month period. Each point shall have a separate
Ratchet Demand for lagging (HLH) and leading (LLH) reactive demand.
5. ADJUSTMENTS FOR REACTIVE LOSSES
Measured data shall be adjusted for reactive losses, if applicable, before
determination of the Reactive Billing Demand.
Adjustments, Charges, and
Staff—DR-061 Attachment A
Page 85 General Rate Provisions
Page 4 of 4
AVLSTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 12/03/2012
CASE NO: AVU-E-12-08 / AVU-G-12-07 WITNESS: Dave DeFelice
REQUESTER: IPUC RESPONDER: Bill Abrahamse
TYPE: Production Request DEPARTMENT: Application Support
REQUEST NO.: Staff-075 TELEPHONE: [phone]
REQUEST:
Please provide a description and supporting documentation showing how Avista selected the
lowest cost vendor for its Next Generation Radio Project. Please include all expenses to date.
RESPONSE:
Please see Avista's response 075C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL 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.
The Next Generation Radio project selected the best fit vendor, TaitMobile, based on a two step
process. The initial step was a Request for Information (RFI) followed by a Request for Quotation
(RFQ). The RFI process brought forward two qualified vendors. The RFQ process followed, and
based on the evaluation criteria, TaitMobile was selected. Avista acquired the services of a
telecommunication engineer firm, Gillespie, Prudhon & Associates, to assist in the evaluation of
the vendor responses to insure prudency of the investment.
Please see Staff PR 075C CONFIDENTIAL Attachment A for the recommendation from
Gillespie, Prudon & Associates.
Please see below for a summary of expenses to date and Staff_PR_075 Attachments A and B for
details of expenses to date.
Description
Capital Expenditures for Period January 1, 2012 through October 31, 2012 3,649,951
Construction Work in Process at December 31, 201 l(for Transfer to Plant in 2012/2013 10,953,553
Total Spend as of October 31, 2012 14.603.504
Sum of Transaction Amount
Er Project Number
5106 109905464
INext
09905464 Total
09905504 INGR
INGR Generator Refresh Total
09905504 Total
09905299 Next Gen Radio sites
INext Gen Radio sites Total
09905299 Total
09805309 INextGen Radio South Region
IRadio Spectrum Purch Total
09905389 Total
09805306 INextGen Radio North Region
North
Exoenditure Cateaor
AFIJDC
Centralized Assets
Contractor
Employee Expenses
Labor
Material
Overhead
Transportation
Vehicle
AFUDC
Labor
AFUDC
Contractor
Employee Expenses
Labor
Overhead
Transportation
Vehicle
Voucher
Contractor
Employee Expenses
Labor
Overhead
Transportation
AF U DC
Contractor
Employee Expenses
Labor
Overhead
Contractor
Overhead
Total
1,044,267.07
137,483.24
2,854,399.64
25,105.74
719,695.79
232.52
776,838.89
53,188.55
7,225.52
5,600,740.46
11,219,177.42
11,219,177.42
398.06
1,046.70
11,998.10
94,844.01
108,286.87
108,286.87
(10,136.48)
(256,038.48)
(2,598.06)
(49,725.86)
(35,399.42)
(0.00)
(60.06)
(19.41 7.33
1,850.00
0.00
0.00
0.00
1,850.00
0.00
0.00
(0.00)
(0.00)
0.00
000
0.00
0.00
0.00
000
0.001
IFTSIne
09805309 Total
09905389
Staff—PR— 075 Attachment A - CWIP 12.31 .12.xls Page 1 of 2
5106 09805306 Next Gen Radio East Region AFUDC (0.00)
Contractor 0.00
Labor 0.00
Overhead -
Next Gen Radio East Region Total 0.00
09805306 Total 0.00
20205011 Next Gen Radio Little Fall HED AFUDC (3.12)
Contractor (130.19)
Overhead (0.52)
Next Gen Radio Little Fall HED Total (133.83)
- 20205011 Total (133.83)
30405022 Next Gen Radio Cabinet HED -AFUDC (3.12)
Contractor (130.19)
Overhead (0.52
Next Gen Radio Cabinet HED Total (133.83
30405022 Total (133.83
40105051 Next Gen Radio Noxon HED AFUDC (3.12)
Contractor (130.20)
Overhead (0.52)
____ Next Gen Radio Noxon HED Total (133.84)
40105051 Total (133.84)
20305022 Next Gen Radio Long Lake HED AFUDC (3.12)
Contractor (130.19)
Overhead (0.52)
Next Gen Radio Long Lake HED Total (133.83)
20305022 Total (133.83)
09805307 Next Gen Radio West Region AFUDC 0.00
Contractor -
Labor -
Overhead -
Next Gen Radio West Region Total 0.00
_________ 09805307 Total 0.00
5106 Total 10,953,553.27
Grand Total 10,953,553.27
11,219177.42
265,624.15
Staff—PR— 075 Attachment A - CWIP 12.31 .12.xls Page 2 of 2
Avista Corp.
Capital Spend from 01.01 .2012 - 10.31.2012-
ER 5106
Sum of Transaction Amount
Er Project Number Project Desc Expenditure Category Total
5106 09905464 Next Generation Radio Project AFUDC 768,835.39
Centralized Assets 350,896.61
Contractor 645,121.00
Employee Expenses 5242.37
Labor 330,659.00
Material 40.69
Overhead 293,804.76
- Transportation 22,509.65
Vehicle 2,021.56
Voucher 1,230,819.78
5106 Total 3,649,950.81
Grand Total 3,649,950.81
Staff PR 075 Attachment B - Spend Jan-Oct 2012.xls Page 1 of 1
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE-PREPARED: 12/04/2012
CASE NO: AVU-E-12-08 / AVU-G-12-07 WITNESS: Dave DeFelice
REQUESTER: IPUC RESPONDER: B.Abrahamse/G.Smith
TYPE: Production Request DEPARTMENT: Application Support
REQUEST NO.: Staff-077 TELEPHONE: [phone]
REQUEST:
Please describe any synergy or overlap of the Moducom project and Next Generation Radio
project.
RESPONSE:
The Next Generation Radio project is refreshing the Land Mobile Radio (LMR) system. The LMR
system is used for critical communication between System Operators and crews working on the
electric and gas infrastructure. The Moducom project is refreshing the Radio Telephone
Command Console System (RTCCS) which is a communication console the System Operators use
to interface to the LMR and telephone systems. This communication console facilitates the
communication between all of the parties involved in the work on the electric and gas
infrastructure. The two projects are complementary and there are technical dependences between
them. The existing RTCCS (Moducom) system is not compatible with the narrow-band
technology being implemented in the Next Generation Radio project.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 12/04/2012
CASE NO: AVU-E-12-08 / AVU-G-12-07 WITNESS: Dave DeFelice
REQUESTER: IPUC RESPONDER: Karen Schuh
TYPE: Production Request DEPARTMENT: Application Support
REQUEST NO.: Staff-080 TELEPHONE: [phone]
REQUEST:
Please provide the 2012 expenses to date for the following projects, including the budgeted and
actual costs. Please update when end of year 2012 numbers are available.
A.Failed Electric Plant
B.Transmission Minor Rebuild
RESPONSE:
A.Please see Staff PR 080 Attachment A for details of capital spend from January 1, 2012
through October 31, 2012 for ER 2059 - Failed Electric Plant. Also, please see the
Company's response to Staff _PR_012 for details regarding capital spend from 2007 -
2011.
B.Please see Staff PR 080 Attachment B for details of capital spend from January 1, 2012
through October 31, 2012 for ER 2057- Transmission Minor Rebuild. Also, please see the
Company's response to Staff _PR_013 for details regarding capital spend from 2007 -
2011.
For both of these ER's please refer to the Company's response to Staff_PR_038 for details of
budget to actual costs.
Avista Corp.
Capital Spend from January 1-October 31, 2012
lFercAcct 1 107000 I
Sum of Transaction Amount
Er Project Number Project Desc Jurisdiction Total
2059 90101520 Electric Failed Plant-CDA ID 76,964.86
90701520 Electric Failed Plant-Kellogg ID 170,621.26
-
91001520 Elect Failed Plant-Grangeville ID 7,000.55
91101520 Electric Failed Plant-Kamiah ID 7,247.75
91201520 Elect Failed Plant-Craigmont ID 13,817.28
91301520 Electric Failed Plant-Orofino ID 4,748.54
91501520 Electric Failed Plant-Elk City ID 12,124.12
91701520 Electric Failed Plant-Deary ID
93001520 Elect Failed Plant-Sandpoint ID 243;749.93
93201520 Elect Failed Plant-Lewiston ID 43,441.97
93301520 Electric Failed Plant-Moscow ID 27,753.73
93601520 Elect Failed Plant-Genesee-Id ID (288.78)
93701520 Elect Failed Plant-Tekoa - Id ID 3,269.90
93801520 Elect Failed Plant-Palouse-Id JID 4,301.21
2059 Total 657,998.89
Grand Total 657,998.89
Staff—PR-080 Attachment AxIs 1 of 1
Avista Corp
Capital Spend January 1, 2012 through October 31, 2012
I Ferc Acct 1107000 I
Sum of Transaction Amount
-Er Project Number Project Desc Jurisdiction Total
2057
_________
29905103 9CE 3HT 115kv Minor rebuild AN 129.42
29905104 ADD KET 11 5k Minor Rebuild AN 16,797.66
29905109 Lind Shawnee Minr Rebuild Pt 2 AN 17,086.73
29905110 Add DGP 115kvXarm Replacement AN 80,014.92
29905111 BEAROS 11 5k Minor Rebuild AN 24,836.17
29905119 Strat Sum Falls Minor Rebuild AN 8,845.34
29905120 Devils Gap NM Minor Rebuild AN 373.24
29905121 NM Westside 11 5k Minor rebld AN 3,447.35
29905122 Airway Hts DG 11 5k Minor rbld AN 2,025.13
39905087 BEN-PIN 115kv Minor Rebuild AN 634.21
39905089 CDA Pine Ck 115 RepI 4 Strs AN 172.21
39905090 JPE/NEZ-ORO 11 5K rebuild ID 7,593.26
39905096 BUR PIN4 115kv Minor Rebuild AN 78,940.52
39905097 BUR PIN3 115kv Minor Reubild AN 107,522.68
39905099 CDA Rathdrum 115kv Minor Rbld AN 36,206.20
39905102 Ramsey Rathd 11 5k Minor Rebld AN 9,537.75
39905103 Clwtr Lolo 2 115kv Minor rbld AN 10,658.39
39905104 Clwtr Lolo 1115kv Minor Rebid AN 44,780.41
42105001 Cabinet Noxon 230kv Minor RbId AN 220,574.00
V2057 Total 670,175.59
Grand Total 670,175.59
Staff—PR-080 Attachment B.xbs I of I
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 12/03/2012
CASE NO: AVU-E-12-08 / AVU-G-12-07 WITNESS: Dave DeFelice
REQUESTER: IPUC RESPONDER: Chris Schlothauer
TYPE: Production Request DEPARTMENT: Fleet Service
REQUEST NO.: Staff-081 TELEPHONE: [phone]
REQUEST:
Please provide the Company guidelines for replacing transportation equipment.
RESPONSE:
Please see Avista's response 081C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL 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.
Please see Staff _PR_08 IC Confidential Attachment A for the Current Vehicle Replacement
Model (VRM).
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 12/03/2012
CASE NO: AVU-E-12-08 I AVU-G-12-07 WITNESS: Dave DeFelice
REQUESTER: IPUC RESPONDER: Chris Schlothauer
TYPE: Production Request DEPARTMENT: Fleet Service
REQUEST NO.: Staff-082 TELEPHONE: [phone]
REQUEST:
Please list the transportation equipment expected to be replaced in 2013.
RESPONSE:
Please see Avista's response 082C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL 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.
Please see Staff PR 082C Confidential Attachment A for the Current 2013 Projected Spend.
Page 1 of!
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
IDAHO DATE PREPARED: 12/03/2012
AVU-E-12-08 / AVU-G-12-07 WITNESS: Dave DeFelice
IPUC RESPONDER: Chris Schlothauer
Production Request DEPARTMENT: Fleet Service
Staff-083 TELEPHONE: [phone]
REQUEST:
Please list the transportation equipment replaced in 2012, with the respective costs. Please also list
any other transportation equipment expected to be replaced in 2012, with the budgeted costs.
RESPONSE:
Please see Avista's response 083C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL information and exempt from public view and is separately filed under
IDAPA 3 1.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code.
Please see Staff_PR_083C Confidential Attachment A for the 2012 equipment replacement list
along with additions.
Page 1 of 1
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 12/04/2012
CASE NO: AVU-E-12-08 / AVU-G-12-07 WITNESS: Dave DeFelice
REQUESTER: IPUC RESPONDER: Karen Schuh
TYPE: Production Request DEPARTMENT: Application Support
REQUEST NO.: Staff-084 TELEPHONE: [phone]
REQUEST:
For the natural gas pro forma capital additions, Adjustment 3.08 listed on Exhibit 10, Schedule 2
page 9, please provide updated actual and/or revised plant-in-service dates and Idaho dollar
amounts for each project separately. For each project with a plant-in-service date beyond
December 31, 2012, please identify , the revenue requirement in the original filing associated with
each project and specifically identify the adjustments necessary to depreciation, taxes, rate base
and other expense items to reflect test year ending December 31, 2012. Please provide the printout
of this information and the underlying electronic file in Excel format with formulas activated.
RESPONSE:
Please see the Company's response to Staff PR 045 for details regarding actual plant-in-service
dates through October 31, 2012 for each project.
There are no projects with a plant-in-service date beyond December 31, 2012 listed in Exhibit 10,
Schedule 2 page 9 adjustment 3.08. All projects listed in this exhibit are expected to transfer to
plant by December 31, 2012.