20170724AVU to Staff 10.doc

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 07/20/2017
CASE NO: AVU-E-17-01/AVU-G-17-01 WITNESS: Elizabeth Andrews
REQUESTER: IPUC RESPONDER: Annette Brandon
TYPE: Production Request DEPARTMENT: State & Federal Regulation
REQUEST NO.: Staff - 010 TELEPHONE: [phone]

REQUEST:

Please provide the details of the individual criteria for the Non-Executive STIP plan components. Please also include the amounts awarded based on each criteria.

RESPONSE:

Please see Staff_PR_010 attachment A for a copy of the 2016 Non-Executive STIP document. As explained in the document, incentive compensation is a percentage of each individuals’ base wages and salaries based on position grade level. The following table summarizes the actual payout for the 2016 Plan.

Metric 2016 Actual Incentive O&M Cost Per Customer $ 6,081,692 Customer Satisfaction $ 1,295,970 Reliability $ 1,295,970 Response Time $ 863,982 Total $ 9,537,614
The table above represents total incentive compensation which includes Capital, O&M and Non-Operating. Incentive compensation is charged to individual accounts via a labor loader which is applied in the same ratio as base wages and salaries.

The Company’s incentive compensation adjustment in this rate case restates the O&M incentive amount to reflect a six-year average of actual payout for 2011-2016. A pro-forma adjustment in the same ratio as base salaries and wages is also included in order to appropriately match both components of cash compensation.
Approximately 61% of total incentive compensation is related to O&M.

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