20171129ICNU Fourth Set of Data Requests to Hydro One.pdf

TEL [phone] ● FAX [phone] ● [e-mail] Suite 400 333 SW Taylor
Portland, OR 97204
October 30, 2017 Via Electronic Mail
James Scarlett S. Kyle Mersky Hydro One Limited PO Box 3727 1411 E. Mission Ave, MSC-27
Spokane, WA 99220-3727 [e-mail] [e-mail]
Re: WUTC v. Avista Corporation Docket U-170970 Ladies and Gentlemen:
Enclosed please find the Industrial Customers of Northwest Utilities’ (“ICNU”) Fourth Set of Data Requests to Hydro One Limited (“Hydro One”) in the above-referenced matter. Hydro One has ten business days to respond to these Data Requests. Please provide your responses by no later than November 13, 2017.

Thank you for your attention to this matter. If you have any questions, please do not hesitate to call. Sincerely,

/s/ Haley M. Thomas Haley M. Thomas
cc: U-170970 Service List

Kari Vander Stoep, Partner Dirk Middents, Paralegal K&L Gates LLP 925 Fourth Ave, Suite 2900
Seattle WA 98104-1158 [e-mail] [e-mail]
PAGE 1 – ICNU’S FOURTH SET OF DATA REQUESTS TO HYDRO ONE
DAVISON VAN CLEVE, P.C. 333 S.W. Taylor, Suite 400 Portland, OR 97204 Telephone: [phone]
BEFORE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION,
Complainant,

IES,
Respondent.

STRIAL
FOURTH SET OF
HYDRO

Dated: October 30, 2017
Please provide responses to these Data Requests by November 13, 2017. DATA REQUESTS
0061 Refer to Schmidt, Exh. MMS-1T. As there are several dollar values provided throughout
the testimony, please identify any dollar amounts that are not expressed in US dollars.
0062 Refer to Schmidt, Exh. MMS-1T at 2:17-18. Why are some commitments phrased to include both Avista and Hydro One and other commitments only cite an obligation of Avista? Where Hydro One is not cited in the commitment, is that commitment not an obligation to support by Hydro One?
0063 Refer to Schmidt, Exh. MMS-1T at 8:20-22. Please define or describe “managerial oversight,” as used in this context.
0064 Refer to Schmidt, Exh. MMS-1T at 9:1-4. Please explain how Hydro One business and operations are completely independent of the Province when the Province is the largest shareholder by legislation, as well as able to remove almost the entire board except for
the CEO.
0065 Refer to Schmidt, Exh. MMS-1T at 11:8-9. Please describe Hydro One’s competency with operating major electrical generating plants and natural gas pipeline and distribution business.
PAGE 2 – ICNU’S FOURTH SET OF DATA REQUESTS TO HYDRO ONE
DAVISON VAN CLEVE, P.C. 333 S.W. Taylor, Suite 400 Portland, OR 97204 Telephone: [phone]
0066 Refer to Schmidt, Exh. MMS-1T at 11:12-14. Was the transmission and distribution system built after Hydro One became a private company? If no, what is the meaning of
the testimony: “we also have significant development experience, having designed and
built substantially all of Ontario’s transmission system and a large portion of its distribution system.”
0067 Refer to Schmidt, Exh. MMS-1T at 16:15-20:
a. For each transaction cited, please identify the US dollar value of goodwill
recorded and the Hydro One company where the goodwill balance remains.
b. For each transaction, as well as the proposed Avista transaction, provide a copy of any and all presentations made to the Board where the transaction was on the agenda.
0068 Refer to Schmidt, Exh. MMS-1T at 17:3-5. Please describe the large industrial
conservation and demand management programs offered since January 2015.
0069 Refer to Schmidt, Exh. MMS-1T at 21:3-8:
a. Is Hydro One contemplating future, additional acquisitions after Avista?
b. Is there a certain size of company Hydro One is seeking to obtain?
0070 Refer to Schmidt, Exh. MMS-1T at 21:10-12. Please provide (or identify, within the
Document Room) copies of all communications to shareholders of Hydro One pertaining
to supporting the proposed acquisition of Avista.
0071 Refer to Schmidt, Exh. MMS-1T, beginning at 21:10. Please provide any due diligence and associated workpapers conducted by Hydro One or its affiliates, or by any third party regarding the proposed traction to acquire Avista. If such workpapers include
spreadsheets, provide them electronically with cell formula’s intact.
0072 Refer to Schmidt, Exh. MMS-1T, beginning at 21:10. Please provide copies of any presentation made to the Hydro One Board, or any affiliated board, regarding the proposed traction to acquire Avista.
0073 Refer to Schmidt, Exh. MMS-1T, beginning at 21:10. Please provide any Board minutes
of Hydro One or minutes from any other board affiliated with Hydro One, regarding the
proposed traction to acquire Avista.
0074 Refer to Schmidt, Exh. MMS-1T at 22:11-15. Please provide any studies or analysis regarding the potential for cost savings.
0075 Refer to Schmidt, Exh. MMS-1T at 22:16-21. Please identify and describe any
decoupling mechanisms in place today, or currently filed with a regulator for
consideration, applicable to Hydro One or any of its regulated subsidiaries.
PAGE 3 – ICNU’S FOURTH SET OF DATA REQUESTS TO HYDRO ONE
DAVISON VAN CLEVE, P.C. 333 S.W. Taylor, Suite 400 Portland, OR 97204 Telephone: [phone]
0076 Refer to Schmidt, Exh. MMS-1T at 26:19-22. Please explain how Avista will “have control and responsibility for making decisions that achieve objectives such as customer
satisfaction, reliable service, employee safety, environmental stewardship and
regulatory/legislative credibility,” when Hydro One will appoint five of the nine Avista board members.
0077 Refer to Schmidt, Exh. MMS-1T, beginning at 26:25:
a. How is the chair of the Board of Avista selected?
b. How is the CEO of Avista selected?
c. Is the CEO of Avista one of the Hydro One five Board members?
d. How will Avista select its four Board members?
e. If all Avista Board members resign simultaneously, who then selects the Avista Board members?
0078 Refer to Schmidt, Exh. MMS-1T at 29:16-20. What is the term or commitment for how
many annual contributions of $2 million will be made to Avista’s charitable foundation?
0079 Refer to Schmidt, Exh. MMS-3 at 1 ¶ 2. Does this text mean that it is possible for Hydro One, for a period of six months, to have appointed 8 of the 9 Avista Board members with the condition that the “interim” Board members must be replaced within a six-month
period?
0080 Refer to Schmidt, Exh. MMS-3 at 1 ¶ 3. Does this text mean that the current CEO of Avista can be replaced after one year by Hydro One? If yes, is the CEO considered one of
the four Avista Board members or one of the five Hydro One Board members? Please explain.
0081 Refer to Schmidt, Exh. MMS-3 at 1 ¶ 4. Does this text mean that Hydro One can decide
that the CEO of Avisa is no longer a Board member of Avista? In that event, how is the new Board member selected, and by whom?
0082 Refer to Schmidt, Exh. MMS-3 at 2 ¶ 6. Does this mean a quorum of Board members could exist that include the Hydro One CEO, another Hydro One executive and its three designated Board members?
0083 Refer to Schmidt, Exh. MMS-3 at 2 ¶ 6. Does this mean a quorum of Board members could never exist where Hydro One members are less than Avista Board designated
members?
0084 Refer to Schmidt, Exh. MMS-3 at 4 ¶ 2 (Governance Matters). Does this mean that the
2/3, or assuming 6 votes for amending the commitments, could include the five Hydro One designess as well as the Hydro One-appointed CEO of Avista? If no, why not? If
PAGE 4 – ICNU’S FOURTH SET OF DATA REQUESTS TO HYDRO ONE
DAVISON VAN CLEVE, P.C. 333 S.W. Taylor, Suite 400 Portland, OR 97204 Telephone: [phone]
yes or no, will Hydro Ones’ answer remain the same after one year, if Hydro One has appointed a new CEO of Avista?
0085 Refer to Schmidt, Exh. MMS-3 at 5 ¶ 2. Please define “material” as used in this
paragraph.
0086 Refer to Schmidt, Exh. MMS-3 at 5 ¶¶ 4-5. Please explain how the CEO of Avista, one year after acquisition, could be selected absent approval by Hydro One?
0087 Refer to Pugliese, Exh. FGFP-1T, beginning at 4:16. Please provide a copy of Hydro
One’s:
a. Customer service guarantee program.
b. Service quality standards for any and all customer classes.
0088 Refer to Pugliese, Exh. FGFP-1T at 5:16. Please provide a copy of the Ontario Ombudsman report.
0089 Refer to Pugliese, Exh. FGFP-1T at 5:21-22. Please provide (or identify, within the Document Room or filed materials):
a. A copy of the customer commitments developed by the Customer Service Advisory
Panel.
b. A copy of all presentations made at the Customer Service Advisory Panel meetings.
0090 Refer to Pugliese, Exh. FGFP-1T at 6:1-4. Please provide (or identify, within the Document Room or filed materials):
a. An electronic copy of the spreadsheet and/or data used to develop the percentages cited.
b. If a data base is maintained to track performance, all of the to-date data for any and all customer service performance measurements.
c. A description of each customer service performance measure.
0091 Refer to Pugliese, Exh. FGFP-1T at 7:22-27. Please provide (or identify, within the Document Room or filed materials) copies of any Hydro One monitoring reports referred
to, as well as any reports that provide comparisons to other utilities (including the data retained to date, analytics, and a description of both).
0092 Refer to Pugliese, Exh. FGFP-1T at 8:21-22. Please provide:
a. A description and level of funding by year since program inception for conservation
and demand management programs.
PAGE 5 – ICNU’S FOURTH SET OF DATA REQUESTS TO HYDRO ONE
DAVISON VAN CLEVE, P.C. 333 S.W. Taylor, Suite 400 Portland, OR 97204 Telephone: [phone]
b. The number of demand management programs offered by customer class and number of participating customers, by month and year, since program inception.
c. The number of MW and MWh saved, by month and year, and by customer class, for each demand management program and conservation program.
d. Given that Hydro One is a transmission and distribution utility, describe the regulatory incentives for Hydro One in place for demand management/conservation programs.
0093 Refer to Lopez, Exh. CFL-1T at 19:8-14. Where Avista provides services to affiliates, to prevent subsidization, does that mean prices Avista charges to the affiliate:
a. Are set no lower than Avista’s direct cost, with no loadings?
b. Are set no lower than Avista’s costs, including loadings?
c. Are set no lower than what comparable services would cost, if the affiliate purchased those services at market prices?
0094 Refer to Lopez, Exh. CFL-1T at 19:8-14. Where an affiliate provides services to Avista, to prevent subsidization, does that mean prices the affiliate charges to Avista:
a. Are set no greater than the affiliate’s direct cost, with no loadings?
b. Are set no greater than the affiliate’s cost, including loadings?
c. Are set no greater than what comparable services would cost Avista, if it purchased those services at market prices?
0095 Refer to Lopez, Exh. CFL-1T at 19:8-14 and the immediately foregoing ICNU DR 0094 to Hydro One. In Hydro One’s response to ICNU DR 0094, is there any assumption
regarding the affiliate’s cost of capital (e.g., is the cost of capital for the affiliate assumed to equal the Commission’s last authorized cost of capital)? If no, please explain.
0096 Refer to Lopez, Exh. CFL-1T at 23:11-15. Please identify which portion of the rate credit is associated with meeting the no harm standard and which portion is associated with meeting the net benefits standard.