20150910AVU to Staff 94.doc

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 09/10/2015
CASE NO.: AVU-E-15-05/AVU-G-15-01 WITNESS: Jim Kensok
REQUESTER: IPUC RESPONDER: Larry La Bolle
TYPE: Production Request DEPARTMENT: State & Federal Regulation
REQUEST NO.: Staff – 094 TELEPHONE: [phone]

REQUEST:

Please provide copies of the original Bonus Plan and any updated Bonus Plans associated with the Project Compass installation and completion.

RESPONSE:

Please see Avista's response 094C, 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, and pursuant to the Protective Agreement between Avista and IPUC Staff dated June 4, 2015.

Avista’s Project Compass bonus plan was developed early in the Project and focused on recognizing and rewarding employees for their individual contributions in achieving the successful implementation of the new systems, over what would be an intensive three-year process. Employees eligible under the plan included regular, full-time employees and certain part-time employees working on the Project. Bonuses were associated with key implementation phases of the Project, and the bonus amounts paid to each employee were tied to their role and level of contribution. The bonus plan document, showing revisions, is provided as Staff_PR_094C Confidential Attachment A. The bonus plan was approved by the Company’s executives responsible for the Project (Executive Steering Committee), and these executives approved revisions of the plan, as well as approving each of the bonus payouts associated with the achievement of each milestone in the plan. A summary of the bonus amounts paid out for each milestone achieved, as well as the total amount paid out over the course of the Project, is provided below.

Payout Date Milestone Amount Paid Notes Aug-12 Phase 1 Milestone met $47,450 Steering Committee Approval Oct-13 Phase 2 & 3 Milestone met $183,350 Steering Committee Approval Sep-14 Phase 4 Milestone met $157,950 Steering Committee Approval Mar-15 Phase 5 Final Milestone met $386,450 Steering Committee Approval Total $775,200 (Budget total $850,000)

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