20160906AVU to Staff 115.doc

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 08/26/2016
CASE NO: AVU-E-16-03 WITNESS: Elizabeth Andrews
REQUESTER: IPUC RESPONDER: Ryan Finesilver
TYPE: Production Request DEPARTMENT: State & Federal Regulation
REQUEST NO.: Staff - 115 TELEPHONE: [phone]

REQUEST:

Please update the following Company adjustments, both Commission Basis and Pro Forma adjustments as of December 31, 2016.
Adjustment 1.02 – Deferred Debits, Credits, and Regulatory Amortizations
Adjustment 2.05 – FIT/DFIT/ITC/PTC Expense
Adjustment 3.02 – Pro Forma Transmission Rev/Exp
Adjustment 3.05 – Pro Forma Property Tax

RESPONSE:

Please see Staff_PR_115 - Attachment A for the updated adjustments. Due to the number of spreadsheets in each file, the files are being provided electronically only. Adjustment (2.05) for FIT primarily restates the 2015 test period expense, therefore, none of the information provided in Adjustment (2.05), except the production tax credit, changes due to reflecting tax expense as of December 31, 2016.

The production tax credit was calculated using the 2017 pro forma power supply data. The credit expires in early 2017, so the Company included only 3 months in the pro forma adjustment. The credit for 2016 would be 12 months. However, the Company believes it is appropriate to use the 2017 level of production tax credit that was included in the original filing, as power supply costs and the PCA base proposed at 2017 levels.

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