20160906AVU to Staff 131.doc

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 08/26/2016
CASE NO: AVU-E-16-03 WITNESS: Karen Schuh
REQUESTER: IPUC RESPONDER: Vance Ruppert
TYPE: Production Request DEPARTMENT: State & Federal Regulation
REQUEST NO.: Staff - 131 TELEPHONE: [phone]

REQUEST:

In AVU-E-15-05, the Company did not estimate any costs for the Cabinet Gorge Unit 1 Refurbishment or the Post Falls South Channel Replacement in 2016 or 2017. Both projects now have 2016 transfer to plant amounts over $14 million. Please provide a detailed explanation of these costs.

RESPONSE:

The original $4 million transfer to plant estimate for 2016 in AVU-E-15-05 included the following projects:
Warehouse Yard Expansion Phase 2 - $700K
New Wash Bay - $1.3M
GPSS Office Remodel - $2M

The new $9.6M transfer to plant figure in this case includes the following projects:
New Investment Recovery Building - $1.5M ($0.3 spent in 2015, $1.2M spent in 2016)
New Beacon Storage Building - $1.2M ($1.1M spent in 2015, $0.1M spent in 2016)
Spokane Construction Office Remodel - $2.9M ($1.5M spent in 2015, $1.4M spent in 2016)
Warehouse Yard Expansion Phase 2 - $0.7M (all spent in 2016)
Wash Bay - $1.3M (all spent in 2016)
GPSS Office Remodel - $2.0M (all spent in 2016)

In short, the main difference between the $4 million and the $9.6 million is due to timing for project completion. The additional three projects noted above, (New IR Building, new Beacon Storage Building, and Spokane Construction Office Remodel) were scheduled to complete in 2015. These three projects, totaling $5.6 million, were completed and transferred to plant in 2016. Also, the number shown for Spokane Construction Office Remodel includes the $0.5M additional scope increase due to the request to restructure the general foreman’s area.

Since the original filing, the Company has revised the estimated transfer to plant amounts for 2016-2017. See Avista’s response to Staff_PR_140 for actual transfers through May 2016. Actual transfers for June through August and updated expected transfers September through December 2016 reflecting the changes will be available in early October through the quarterly update.

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