20160922AVU to Staff 114 SUPPLEMENTAL.docx

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATIONJURISDICTION:IDAHODATE PREPARED:09/22/2016CASE NO.:AVU-E-16-03WITNESS: Mark ThiesREQUESTER:IPUCRESPONDER: David MachadoTYPE:Production RequestDEPARTMENT:State & Federal RegulationREQUEST NO.:Staff–114 SupplementalTELEPHONE:[phone]REQUEST:
Please provide electronic schedules showing the Annual Capital Expenditures Budgets for the last 10 years, as of December 31, 20XX. Please include at least the budgeted amount, the actual spend amount, and the amount booked to plant in service by year by functional category (i.e., environmental, gas, generation, growth, enterprise technology, other, and transmission & distribution).RESPONSE:
Please see the Company’s response to Staff_PR_022 and Staff_PR_127 for details of the 2014-2016 current capital expenditures by functional category. Please also see Staff_PR_114 Attachment A for the last 10 years of budget to actual information.
Please see the Company’s response to Staff_PR_140 Attachment A for details on updated expected in-service dates for each project.
SUPPLEMENTAL RESPONSE:
Per request from Staff, the annual transfers to plant, on a system-wide basis, for the years 2010 through 2015 have been included below:
Regarding the relationship between capital expenditure and the balance of transfers to plant, it is not unusual for these amounts to differ from each other in any given year (that is, to depart from a 1:1 relationship, where the capital expenditure balance is not equal to the balance of transfers to plant). This difference is mainly due to the existence of large capital investment projects that span multiple years (i.e., two or more). However, when viewed in the context of longer periods of time, the Company observes that the ratio is substantially closer to 1:1, as would be expected. In particular, the transfers to plant in 2015 and 2016 are in excess of the capital expenditure in those years, because of the multi-year projects that were placed in service in those years (including, but not limited to, the Customer Care & Billing platform in 2015 and the Nine Mile Redevelopment in 2016).