20150729AVU to Staff 35.doc

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 07/20/2015
CASE NO.: AVU-E-15-05/AVU-G-15-01 WITNESS: Elizabeth Andrews
REQUESTER: IPUC RESPONDER: Ryan Finesilver
TYPE: Production Request DEPARTMENT: State & Federal Regulation
REQUEST NO.: Staff - 035 TELEPHONE: [phone]

REQUEST:

Please describe the fixed costs associated with the use of the Company-owned aircraft, such as pilot salaries, hangar fees, etc. Please provide the dollar amount posted in 2014 at the system level, the account(s) posted, how those costs were allocated or assigned to Idaho gas and Idaho electric operations.

RESPONSE:

Please see Staff_PR_035 Attachment A for a listing of utility costs associated with the company aircraft. These costs are allocated 22.884% to Idaho Electric and 5.796% to Idaho Gas. In general, fixed costs include the following:

• Plane lease payments
• Pilot salaries
• Insurance
• Hanger Rent
• Maintenance

These costs are primarily captured using Master Activity Code (MAC) 011, Corporate Aircraft
Operations. Outside of the MAC 011 Project / Task combinations, there are two additional project / task combinations for training and professional fees which are included for Org Code L54; these costs are expensed as incurred.

Fixed costs are reviewed monthly to reallocate appropriate portions between utility and non-utility based on actual non-utility flights incurred during the year. See Staff_PR_035 Attachment B for Non-utility related expenses.

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