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HomeMy WebLinkAbout20160713AVU to Staff 38.docAVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JURISDICTION: IDAHO DATE PREPARED: 07/12/2016 CASE NO: AVU-E-16-03 WITNESS: Tara L. Knox REQUESTER: IPUC RESPONDER: Tara Knox TYPE: Production Request DEPARTMENT: State & Federal Regulation REQUEST NO.: Staff - 038 TELEPHONE: (509) 495-4325 REQUEST: The Company's weather normalization models assume there to be linear relationships between Cooling Degree Days, Heating Degree Days, and Consumption. Did the Company consider incorporating higher order curvature terms in its model? If so, why were they not included? RESPONSE: The methodology was developed in 2006 and the model has been updated with current data annually with the goal to maintain consistency with the accepted methodology. Ms. Knox recalls testing a number of data transformations during the development of this methodology in 2006, but not specifically testing higher order terms. No workpapers or analysis were retained during this exploration of methods. The various transformation models were not adopted as they did not result in any material statistical improvement. Page 3 of 1 Page 1 of 1