20190703Avista to Staff 1-35.pdf

#wsrfr
RECE IVED
2019 JUL -3 AH il: 05
luly 2,2019 t,]ril-iC ;:'UELICr iLiTIES COfu!MISSION
Idaho Public Utilities Commission
472W. Washington St.
Boise, ID 83702-0074
Attn: Edward Jewell
Deputy Attorney General
Re: Production Request of the Commission Staff in Case Nos. AVU-E-I9-04
Dear Mr. Jewell,
Enclosed are Avista's responses to IPUC Staffs production requests in the above referenced
dockets. Included in this mailing are the original and two paper copies of Avista's responses to
production requests: Staff No. I I Supplemental, 13, l4r l5r 17 ,18, & 26. Also enclosed on three
separate CD's are copies of Avista's responses to the production requests. The electronic versions
of the responses were emailed on 07102119.
Also included both on paper and on a separate CD are Avista's CONFIDENTIAL response to PR
017C. This response contains TRADE SECRET, PROPRIETARY or CONFIDENTIAL
informationand is separately filed under IDAPA 31.01.01, Rule 067 and 233,and Section 9-340D,
Idaho Code. It is being provided under a sealed separate envelope, marked CONFIDENTIAL.
If there are any questions regarding the enclosed information, please contact Paul Kimball at (509)
495-4584 or via e-mail at [e-mail].
Sincerely,
Avista Corp.
1411 East Mission P.O.Box3727
Spokane. Washington 99220-0500
Telephone [phone]
TollFree 800-727-9170
?'
Paul Kimball
Manager of Compliance & Discovery
Enclosures
CC (Email):IPUC (Hanian)
Idaho Forest Group (Miller, Williams, Crowley, Miller)
Corp,
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AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION
CASE NO.:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-04
IPUC
Production Request
Staff-01 1 Supplemental
DATE PREPARED
WITNESS:
RE,SPONDER:
DEPARTMENT:
TELEPHONE:
EMAIL:
0710112019
Elizabeth Andrews
Joel Anderson
State & Federal Regulation
(s09) 4es-2811
j oel.anderson@avistacorp. com
Please provide a list of "out-of-period adjustments" and "extraordinary items" for the years
2017-2019 to date.
RESPONSE:
The Company believes there are no extraordinary items for years 2017 through2019 year to date,
which includes the test period of twelve months ended December 31,2018. Each month, as the
Results of Operations reports are prepared, the Company reviews unusual fluctuations in revenues
and expenses. Certain prior period costs are removed at that time (primarily tax retum true-ups for
prior years). The Company is in the process of reviewing all non-standard journal entries for the
period 2017-2019 to date, and will supplement this response at the conclusion of that review.
SUPPLEMENTAL - Julv l,20l9:
Upon review of all non-standard journal entries for the period 2017 -2019, no additional items of
note came to the Company's attention.
However, the following non-recurring 2018 expense did come to the Company's attention:
Although the Company recorded (deferred) the 2018 tax benefit associated with the AFUDC
Equity tax impact, to return to customers at a later time (see Andrews testimony starting at page
43, line 15), by recording the deferral within its general ledger (and Results of Operations for each
of jurisdictions) in December 2018, the Company failed to remove within its direct filing the
amortization expense associated with this item. See StafLDR_O1I - Attachment A. The impact of
this adjustment would reduce Idaho electric expense by $389,404, and reduce the Company's
requested electric revenue requirement by $391,000.
Page I of I
REQUEST:
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AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO.:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-04
IPUC
Production Request
Staff - 013
DATE PREPARED: 0710112019WITNESS: Elizabeth Andrews
RESPONDER: Mary Tyrie
DEPARTMENT: Communications
TELEPHONE: [phone]
REQUEST:
Please provide detail of all advertising expenses recorded above the line including account and
subaccounts where posted, dates posted, vendor names, explanations, and amounts posted during
2018.
RESPONSE:
Cost of Customer Communications/Advertising
Please see Staff PR_013 Attachment A for detail of all advertising expenses recorded above the
line. Due to the voluminous nature of the attachment, it is being provided in electronic format
only. See the Company's response to Staff PR_014 Attachment A for copies of advertisements.
Description of Customer Advertising
The Company advertises on a variety of topics using a number of mediums to help inform and
educate customers about topics of importance to them. Advertising is defined by paid media
including TV, Radio, NSP, On-Line, direct mail, includes production costs, media placement costs
and printing. The main categories of communications include:
DSM Outreach & Advertising
Customers were provided information about energy efficiency tips and Avista's rebate programs
through television, print, and digital advertising well as our website and program partners
(e.g., contractors and equipment dealers).
Safety Advertising
Safety communication educates customers on various aspects of electric and natural gas safety,
including the importance of calling before they dig, knowing what to do if they smell natural gas,
using common sense around power lines, removing snow off of gas meters, etc. A variety of
advertising methods are used.
Limited Income and Senior Outreach
A variety of outreach programs are focused on supporting limited income, senior, working family
and children with information and resources to assist them in managing their energy use and
energy costs. Senior outreach focuses on connecting seniors with energy assistance options and
services they may need. LIRAP provides energy efficiency tips and products to limited income
customers. Additional detail about three of the programs that are supported by the LIRAP
conservation education funds include:
Senior and Vulnerable Customer Outreach
Page I of2
Advertisements are placed in publications and newspapers in Avista's service territory that
best target senior and vulnerable adults to highlight the assistance programs and customer
billing options that are available for seniors and how to access those programs.
Enerry Fairs Outreach
Avista held Energy Fairs in 2018 in our Idaho service area in Lewiston and Coeur d'Alene
for the pu{pose of reaching out to limited income, senior and working families living in a
rural community with resources and information to assist them in managing their energy
costs. The events included Avista staff providing energy efficiency demonstrations,
giveaways of energy efficiency items (LEDs, door sweeps, window plastic, etc.) and
information about customer service billing and payment options. The Community Action
Partnership provided information about energy assistance grants and weatherization
programs. Other community partners participated by providing information on financial
counseling, fraud and scam prevention, independent living skills for those with disabilities
and health screenings were provided for all attendees.
Bill Assistance
We inform customers about comfort level billing, preferred due date, flexible payment
arrangements, energy assistance programs and energy efficiency programs. Print advertising and
emails were used to educate customers about the many options they have for managing their
energy bill. The Avista website has additional information and ways that customers can sign up for
various bill payment options.
Natural Gas
We inform customers about the benefits of natural gas through advertising (television, print and
radio) as well as direct marketing.
Other
Advertisements and customer outreach not covered in other categories are included in "Other."
This includes vegetation management outreach, meter testing information, rates communications,
customer service information, storm preparation, planned outages, community support, products
and self-serve options.
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AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION
CASE NO.:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-04
IPUC
Production Request
Staff - 014
DATE PREPARED: 0710112019WITNESS: Elizabeth Andrews
RESPONDER: Mary Tyrie
DEPARTMENT: Communications
TELEPHONE: (509) 49s-4470
REQUEST:
Please provide copies of all advertisements used during 2018 and conelate the advertisement with
the specific detail provided in the Company's response to Request No. 13.
RESPONSE:
Please see Staff AR_014 Attachment A. Due to the voluminous nature of the attachments (over
290 files), they are being provided in electronic format only.
Page I of I
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO.:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-04
IPUC
Production Request
Staff - 015
DATE PREPARED: 07 l0ll20l9WITNESS: Elizabeth Andrews
RESPONDER: Paula Nichols
DEPARTMENT: Customer Service
TELEPHONE: [phone]
REQUEST:
Please provide copies of all billing inserts for 2018, and indicate the states where they were sent.
Please also provide a schedule showing the amount and account numbers charged for all costs to
produce, print, and distribute the inserts.
RESPONSE:
Please see Staff PR_01 5 Attachment A for a listing of billing inserts. A zip file which includes an
electronic folder containing copies of billing inserts labeled by state is also provided. Due to the
voluminous nature of the zip file attachment, it is being provided in electronic format only. See
Staff PR 015 Attachment B and C for the costs associated with the inserts.
Page I ofl
ITE:\I C'ODE DESCRIPTIOi-L}IT PRICI EXTEIDED
TransCentra insert costs.
January 2018
zzz6tt Inseraing BRE antUor Ilserts 855,237 0.003000 2,565.7r
-{\,4268I
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A\,'A27{I
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AV'A282I
IYA288I
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Dec-Conneclions 11'A,1ID
Dec_Connectious OR
OR Rights & Responsiltilities
Jrn_Connections rr\A/ID
Jrn_Conneclions OR
EITC Spokane Countl
free tlx prep!
CO I)eleclor
\lA_R&D Trriff
7,267
5,G{3
5,6t3
254,072
60,783
I20,lu
3,8r3
112,515
8{,186
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
A\IO3B Avista #9 BRE Ilt'IB (repl 028)20r,203 0.000000 0.00
855237 -201,203 = 654034 x.003 = 1,962.70 (cost to distribute inserts)
Feb
ZZZ6IO Inserting BRE an<L/or Inserls rr50,6r3 0.003000 3,45r.84
A!i{230I
-{\'A270I
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Jan_Connections OR
EITC Spokrne Counl-v
Free tlx prepl
Atiste h'imcv Policy
Connections \liUID-Feb
Connections OR_Feb
CO Detector
QIC Landscnpe Flnt Env
201,923
1,757
9,001
4,150
.1,137
247
325.484
237,343
57,8r0
llJ,21 9
557
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.261600
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
145.7t
A\l,L03B Arists #9 BRE I}IB (repl 028)f89,5,12 0.000000 0.00
1150613 - L89542 = 96L077 x .003 = 2883.2L (cost to distribute inserts)
March
ZZZ6IO Inserting BRE nnd/or Inserts 1218,068 0.00J000 3,65{.20
ITE}I CODE DES(?IPTIO\QTY PI.'RCII I.'\IT PRICf,E]iTE\-DED
QIY PI'RC II T:-IT PRICE EXTE}'DEDITE}I CODE DES(RI?TIO}-
Staff_PR_015 Attachment B Page 1 of 6
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{lonnections \\A{D_Feb
Connections OR_Feb
Connections \\l{,[D_]lar
Connections OR_]Iar
Leuk Sun'ey
Buck-A-Block
llerge info for 11A
21,r85
6 285
37,702
73,373
10,092
261,8,t6
66,681
r!3,201
258,322
186,1.11
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.00
0.00
0.00
0.(x,
0.00
0.00
0.00
0.00
0.00
0.00
A\AO3B .{r'ista #9 BRE f}IB (repl 02B)223,740
1218068 -223740=994328 x.003 = 2982.98 (cost to distribute inserts)
April
0.000000 0.00
ITEII CODE DES( RIPTIO}QTY P[RCH I.]]IIT PRIC-E EXTE\DED
z2z6t0 Inserting BRE andlor Inserts l l8l,6r 2
102,835
72,485
238,398
56,512
238,398
291,50.t
0.003000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
3,544.84
0.00
.{\4290I
A\i4,292I
A\i{293I
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A\'.{,295I
A1'.,\-296I
Leak Survey
Power to people_electric vehic
April Connections WAIID
April Connections OR
E nergy' Efliciency .{wareness
81l/Pizza promo
0.00
0.00
0.00
0.00
0.00
0.00
A\.AO3B Alist* #9 BRE IMB (repl 028)181,.t80
LLBt6t2 - 181480 = 1000132 x .003 = 3000.40 (cost to distribute inserts)
May plus printing
IIE}I CODE DESCRIPTIO}-QTYPTiRCH L\II PRICE F]\TE\-DED
ZZZ6IA Inserting BRE and/or Inserts
lIal'_Geti\'IoreOutOfl-curFurnace
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April Connections llAIID
April Connections 0R
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8ll/Pizza promo
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Renewnble Energl' Credits
r285,107 0.003000 3,855.32
Page 2 of 6
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23,066
10,085
23,066
30,287
91,109
251,011
60,806
175,580
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.00
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0.00
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Aristn #9 BRE L\{B (repl 028)214.282
1285707 -2L4282 = 1070825 x.003 = 32L2.48 (cost to distribute inserts)
Printing AVA308i
Staff_PR_O1 5 Atlachment B
0.000000 0.00
QTY PI'RC'H r\IT PRICEDESC.RIPTIO:-
2.1# generic roll stock Laser F
First Sheet Printing
Black Ink
Digitrrl Form Printing
Cutting Charge
6rJ3.l
61J3.1
6rJ31
61,33{
l 22,668
0.007200
0.059500
0.000000
0.00{{00
0.00.{600
Tr\ CL{SS DESCRIPTIOI AIPORTION o-.TAX RATE TI\ASLESIT
Printing
Taxable
Printing
Taxable
27.6750
27.6750
52.2650
52.2650
6.0000
6.0000
9.9000
9.9000
1.084.6{
278.31
2,018.42
525.75
ITE1I C'ODE
QICOsR
ZZZO60
zzzz50
ZZZSOO
ZZZTIO
STATE
June
ID
ID
11A
\14
ESTEIDED PRICE
{{1.60
3,6{9.37
0.00
269.87
561.27
T.r\.,L1tOt'\T
65.08
16.70
202.79
52.05
Tnxable Sales: 3,937.18 Non Tsxable Sales:
Location: 07 Des }loines
Regulur charges sales tax wlrere Nexus octurs.
987.93 Subtotal:
Srles Tax:
.t,925.11
336.62
5,261.7JInvoice Amount:l)etaclr Here
QTY PT:RCH T]NIT PRICE EXTE\-DEDITETI CODE DES('RIPTIO\
ZZZ6IO Inserting BRE antUor Inserts 1176,931 0.003000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
3,530.79
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
A1'Ar92I
A\4297I
A\1L298I
AVA299I
AVASOlI
AVA3O2I
AIASOTI
AvA3OSI
A\A3TOI
13,767
174,171
10,169
< <oo
288,486
7{,305
36J,321
9,116
19,330
i\'Iay_Get\'IoreOutOflburFurnoce
Buck-.4-Block
Connections \Y;UID_Ihy
Connections OR_l'Iay
Nnturol Gns & Electric Safety
Natural Gus Safetl
illarketplace sw€epstskes
Renewnble Energy Credits
2017 .{nnReportCard-StcQuality
AYAO3B Arista #9 BRE IIIB ['epl 028)215,76.1
tL7693L-215764 = 1070825 x .003 = 2883.50 (cost to distribute inserts)
July plus printing
ITtrlI CODE DES(RIPTIO}QTY P.tRCH T]:iIT PRICf,EXTE\DED
Z2Z6IO
A\,'A273I
A\A3O3I
.,{\430!tI
.,{\zA309I
A\ZA3IOI
Inserting BRE an&or Inserts
ID FCARrte Adjustment
Connections \VA/[D_July
Connections OR_,Iu\'
!14 Sch 91/l9l DSII filing
20I. 7 ArnReportCrrd-StcQuality
791,473
6{,480
251,899
60,393
58.725
r67,r50
0.003000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
2,39!.42
0.00
0.00
0.00
0.00
0.00
0.(x).{\4038 Arista #9 BRE IIIIB (repl 028)r9r,826
797473-t94826=L070825 x.003 = L807.94 (cost to distribute inserts)
Printing
Staff_PR_o1 5 Attachment B Page 3 of 6
QTY PTRTH I.lIT PRICEITT}I CIODE DES(-RIPIIO\
Qrc08R
ZZZO6i
ZZZ2SO
ZZZ3OO
zzz7t0
24# generic roll stock Laser F
First Sheet Printirg
Black Ink
Digital Form Printing
Cutting Charge
lr{,750
1r{,750
I1{,750
rr4,750
229"50$
0.007200
0.059500
0.000000
0.004400
0.004600
STATE TIX CLASS Df,SCRIPTIO\APPORTION g o TI-\ RATtr T,I\.I,BLE JI1IT
TD
TD
\14
\IA
Printing
T$xable
Printing
Txlble
27.6750
27.6750
52.2650
52.2650
6.0000
6.0000
9.9000
9.9000
2,O29.?7
5:0.E1
3,832.37
983.59
EXTEfDED PR1CE
826.20
6,827.63
0.00
50.1.90
1,055.70
Trt.\..\'1tof'\T
121.76
31.25
379.40
97.38
Tsxable Srles: 7J66.04 Non Taxable Srles:
Location: 07 Des *Ioines
Regulus charges sales tax where Nerus occurs.
r,848.J9 Subtotal:
Sales Tax:
9,2r1.{3
629.79
Detach Here Invoice Amount:9,8.t{.22
August plus printing
ZZZ6IO Inserting BRI antVor Inserts 1060,036 0.003000 3,180.11
AVA273I
A1.A303I
A\A3O.II
A1A3O5I
A1A306I
A\1r,309I
A\A3III
AVA3I3I
Av'A31.tI
ID FCA Rate Attjustnr€nt
Connecfions !\'AJID_July
Conn€ctioDs OR_July
Con nec tions \l"A.fID_Au g
Connections OR_Aug
\lA Sch 911191 DSII ftliug
Rir.er lllap
\\1{LIRdP
ID PCAIDSII/BPA./Decoupling
36,83r
9,967
5,599
258,991
64,422
t21,892
l.tl.119
r50,286
57,676
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
.TYAOJB Arista #9 BRE I\{B (repl 028)213,653 0.000000 0.00
1060036 - 213653 = L070825 x .003 = 2539.15 (cost to distribute inserts)
Printing 68252 3 up for 313i
ID
ID
w.A.
WA
Ptinting 27.6750
?7.6750
52.2650
52.2650
6.0000
6.0000
9.9000
9.9000
2,176.81
558.68
{,111.07
r,055.13
130.61
J3.52
{07.00
l0{.{6
Tnxlble
Printing
T*xatrle
ITE}I C'ODE DES(]RIPTIO\QTY PT'RCH T'IIT PR]CE E\TE\_DED
ITE]I CODE DESC RIPTIO\QTl',P[?CE I\IT PRIC E EXTEI'DED PRICE
QICO8R
ZZZO6O
ZZZ2,SO
ZZZ3OO
ZZZTIO
123.095
123,095
123,095
123,095
246,190
0.007200
0.059500
0.000000
0.004.t00
0.004600
8E6.28
7J2.t.I5
0.00
5{1.62
I,lJ2.47
2.1# genedc roll stock Loser F
First Sheel Printing
Black Ink
Digitol Form Printing
Cutting Chrrge
ST.{TE AIIoRTIO:.. 0o T..1-\R{TE TA.ltLBLE -4lrT T^4I Af IOT'\-TTA.X CLTSS DESC'RIPTIO\
Staff_PR_o1 5 Attachment B Page 4 of 6
Taxalrle Sales: 7.901.72 Non Ttxable Srles:
Locslion: 07 Des lloines
Regulus charges snles tax where \-exus occurs.
1,982.80 Subtotal:
Snles Trx:
Invoice Amount:
9.88,t.52
675.59
r0,560.rrDetach Here
Sept
ITE}I ('ODE DES(:RIPTIO:(QTY PTTRCH I. NIT PRICE EXTENDED
ZZZ6IO Inserfing BRE aadlor Inserts 882,852
69,7t6
t.lJ62
11 17'
25.{,86s
6r,605
51,583
179,2?1
0.003000
0.000000
0.00000{t
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
2,6.t8.56
AvA3llI
A!'A3l3I
AYA314I
A\TA3I5I
A\..$r6I
.{r'A3r8I
AV.{319I
River )llap
\\'.r LIRAP
ID P(:.{/I)Sl\UBPA"/Decouplin g
Connections lllVID
Connections OR
ID PG,DS}I/BP.{
\\Id PGA,/B P.4,/LIRA,Pi DECOT:PL ING
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-{}A038 .dvista #9 BRE IIIB (repl 0lB)199,r 25
882852 - 199125 = 683727 x .003 = 2,051.18 (cost to distribute inserts)
Oct
0.00
QTYPIiRCHITETI C'ODE DESCRIPTIOI
lZzzen I Inserting BRE anrl/or Inserts I ara,zos I
9,659
5,342
168,769
I,I93
9,t1,6
?62,1{6
66,136
90,936
I o.oozs+o I z.*s.rz
0.000000
0.000000
0.000000
tf.000000
0.000000
0.000000
0.000000
0.000000
0.000000 0.00
.{vA3r5I
A\''A316I
.{YA3l7I
.{vA318I
.NIA3I9I
AvA32OI
AVA321I
AVA333I
Connections l1'A"/ID
Connections 0R
EV charger program
TD PGA/DSI{/BPA
lVAPGA/BPA/LIRAP/DECOL?LLNG
('onnections 11'A,1ID
Counections OR
ID How to Cglc res bills
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
.{\'A038 ^{rista #9 BRE I\IB (repl 02B)218,{58
838765 - 218458 = 620307 x .002940 = L,823.70 (cost to distribute inserts)
Nov
ITE}I CODE DESCRIPTIOI PI'RCH I. ]\IT PRIC:E EXTE\T}f,D
2ZZ6IO fnserting BRE an<Uor Inserfs 103J.211
99,652
:{6,903
176.1t2
252,112
60.555
0.002940
0.000000
0.000000
0.000000
0.000000
0.080000
3.037.64
A\4275I
AVA297I
A\4322I
-{vA323I
AVA324I
ID_Rights& Responsibilities
Buck-A-Block
lleetRenEnrgyTa r gettl 9 31
Connections WA/ID_Nov
Connectionr OR_Nov
0.00
0.00
0.00
0.00
0.00
.{\:A038 ^{listr #9 BRE L\IB (repl 028)791,577
1033211 - 197577 = 835634 x .002940 = 2,456.76 (cost to distribute inserts)
0.00
Staff_PR_01 5 Attachment B
0.000000
Page 5 of 6
Dec plus printing
ZZZ6IO I Inserting BR-E andror Inserts E94.E35 0.002940 2,630.8r
AvA274I
A\A275I
-{\'A297I
.{\4322I
.{\4323I
.{\.,A324I
A\:.{,325I
A\:A327I
Ali{328I
A\:.{329I
OR Rights & Responsibilities
ID_Rights& Responsibilities
Buck-A-Block
lleetRenEnrgl'Ta r gell I 9 37
Conneclions WA.{ID_\ov
Connections OR-Nov
Alista Nlurketplace
Connections \1i{"/II}_Dec
Connections OR_Dec
ETO notice(Rates)
58,021
r,{6r
10,96r
9,637
9,90t
5,517
239,062
239.062
58,02r
64,190
0.000000
0.000000
0.000000
0.000000
0.000000
0.00{t000
0.000000
0.000000
0.000000
0-000000
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
.{\'A038 .{ristrr #9 BRE IMB (repl 028)198.371 0.000000 0.00
894835 - L98377 = 696464 x .002940 = 2,047.60 (cost to distribute inserts)
Printing
EXTEI-DED PRIC'E
204.86
1,-55{.95
0.00
rl{.99
245.34
TI!(I\IOI'}T
27.73
7.47
86..tr
23.30
Toxrble Sales: 1,69{.88 Non Tuxrrble Sales:
Locutiou: 07 Des \Ioines
Regulus charges sales tax n'here Nexus occurs,
125.26 Subtot0l:
Srles Trx:
2,t20.11
l{,1.91
Detach Here Invoice.{mount:3.265.05
[TE}I ( ODE DES(.RIPTIO\QTY PI-RCII t r-IT PRI( E f\TE\'I}fD
ITEU C.ODE DESCRIPTIOS qTvPL:RCH TNIT PRICE
Qrc08R
ZZZO60
ZZZISO
ZZZ3OO
zzz7t0
2.1# generic roll stock Laser F
Firsl Sheet Printing
BI:rck Ink
Digitul Form Printing
Crrtting Chnrge
26,661
26,661
t6,661
26,667
53,334
0.007682
0.058310
0.000000
0.00{312
0.00{600
STATE T.!\ CLdSS DESCRIPTIO]T AIPORTIOi- q!T,\X R.I.TE TI\ABLE A\IT
27.6750
27.6758
52.2650
52.2650
6.0000
6.0000
9.9000
9.9000
d62. l5
12,r.58
872.81
235.3{
ID
ID
\\,A
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Taxable
Printing
Taxrble
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AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
IDAHO
AVU-E-19-04
IPUC
Production Request
Staff-O17
DATE PREPARED: 0710212019WITNESS: Karen Schuh
RESPONDER: Business Case Owners
DEPARTMENT: Regulatory Affairs
TELEPHONE: (s09) 49s-2293
REQUEST:
Please provide copies of the cost/benefit analysis, intemal rates of retum, or similar analysis for
each capital project included in the Company's response to Request No. 16.
RESPONSE:
Please see Avista's response Staff PR_O17C, which contains TRADE SECRET,
PROPRIETARY or CONFIDENTIAL information and exempt from public view and is
separately filed under IDAPA 31.01.01, Rule 067 and233,and Section 9-340D,ldaho Code.
As shown in the Company's response to Sta[PR_0 1 6, Avista has identified I 4 ERs for which the
transfers to plant (additions to rate base) allocated to Idaho exceeded $2 million in total from
January 201 7 through May 2019. These 14 ER names and numbers are listed below:
ER ER Name
2055
2060
2470
2531
2550
2556
2564
4116
4140
4148
Electric Distribution Minor Blanket
Wood Pole Mgmt
Dist Grid Modernization
Westside 230 kV Substation - Rebuild
Burke-Thompson A&B 11skv Transmission Rebuld
CDA-Pine Creek 11SkV Transmission Line: Rebuildi
I
",|
DeMls Gap-Lind 11SkV Transmission Rebuild Proj
Colstrip Capital Additions
Nine Mile Rederclopment
Regulating Hydro
Little Falls Powerhouse Rederclopment4152
5005
s006
lnformation Technology Refresh P rogram
lnformation Technology Expansion P rogram
7131 COF LongTerm Restructuring Plan Phase 2
We have included additional cost/benefit or similar analysis for each capital project (business
case), where available. Where a capital project does not have a cost/benefit or similar analysis
beyond the aforementioned CIRR, we explain why such analysis was not considered. See below
for discussion of the capital projects and any related attachments.
ER 2055 - Electric Distribution Minor Blanket: This ER addresses minor rebuilds of
distribution equipment (e.g., replacing meters, services, transformers, primary lines, etc.) as well
as replacing damaged equipment. Cost/Benefit studies are not normally done on this type of work,
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
as per reliability standards, failed facility must be restored to operating condition immediately.
Internal Rates of Return likewise are not performed on this type of work, as the risk of
fines/penalties create a situation where it is not a viable option to leave failed plant unaddressed.
This work is considered mandatory by nature, therefore no financial justification is attached. The
following are types of work that are primarily reactionary, due to failure or protection against
future failure. The following are examples of the types of work performed:
Customer Requested: Reroute/Conversion, Customer Load Increase
Trouble: Car Hit Pole/Padmount Transformer (lncluding Damage Claims), Failed
Equipment (Emergency Response), Copper Theft Repair
NESC / Operating Standard Violations: National Electric Safety Code ("NESC")
Violation (Not related to Joint Use), Secondary/Service Related Voltage Mitigation,
Fusing / Feeder Protection Mitigation, Aerial Trespass, Undersized Equipment
(Transformers, regulators, etc.)
Asset Condition: Deteriorated Pole, Failing Equipment (not outage related), Leaking
Transformers, Replacement of Line Devices (Condition Driven, End of Life)
Facility Upgrades / Efficiency Improvements: Small Scale Reconductor, Small Scale
Feeder Ties, New Switches and Sectionalizing Devices, Feeder Balancing, New Voltage
Regulators, Midline Reclosers, Capacitor Banks, Open Wire Secondary Removal
Facilify Reroute / Location Modifications: Overhead to Underground Conversion,
Facility Reroute, Relocate Midline Devices
ER 2060 - Wood Pole Management: The Company's Wood Pole Management Program was
designed with a reliability focus. Wood poles naturally fail as they age. Across Avista's service
territory, we have poles that are nearing 100 years old. The Wood Pole Management Program
proactively identifies the poles most likely to fail before they do so, potentially causing customer
outages. In fact, according to Avista's failure data, 29o/o of pole failures result in customer
outages. Replacing poles prior to failure in a prescriptive, preventive fashion helps the Company
keep costs lower, as replacing a pole on an emergency basis increases costs. Thus, this program
provides lower costs and a higher level of reliability for our customers over the long term. Please
see Staff-PR-017 Attachment U for details regarding the calculated IRR.
ER 2470 - Distribution Grid Modernization Blanket: This ER addresses the replacement of
undersized and deteriorating conductors, failed and end-of-life infrastructure materials including
wood poles, cross arrns, fuses and insulators. Work performed under this ER represents required
capital maintenance to provide safe and reliable service to customers. Please see Staff-PR-OI7
Attachment T for details regarding the calculated IRR.
ER 2531 - Westside 230 kV Substation Rebuild: This project is necessary to mitigate our
current noncompliance with mandatory NERC transmission planning standards during heavy
summer loading conditions. Failure to make these planned investments will result in our failure to
comply with mandatory NERC standards. We will continue to overload the Westside #1
2301115kV transformer during Phase I of this project, which overloading will extend to the
existing Westside Substation 115kV and 23OkV buses, to allow for installation of a new 250MVA
2301115kV Autotransformer. The additional transformation capacity is necessary to eliminate
Page 2 of6
a
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transformer overload contingencies in the Spokane area. Please see Staff-PR-017 Attachments G-J
for documentation on cost benefit and alternatives related to this ER.
ER 2550 - Burke-Thompson A&B 115kV Transmission Rebuild: This project is a part of the
Transmission major rebuild program. The purpose of this program is to rebuild existing
transmission lines based on overall asset condition (at the end of their useful life). The failure to
timely replace aging transmission infrastructure on a planned basis would subject our customers to
the increased risk of service outages and increased restoration costs as we become less able to
continue providing our current level of reliability. In addition to customer outages, the added risk
of failure also impacts the economic dispatch of our Company's generation resources and
increases the risk of fire in dry areas. Finally, the failure to properly invest builds a "bow-wave" of
needed investments to the future, which makes it more difficult to fund these projects in addition to
our already-planned priority infrastructure needs. The Company will supplement this response
with any additional information when available.
ER 2556 -CDA-Pine Creek 115 kV Transmission Line: This program reconductors and
rebuilds existing transmission lines to maintain compliance with NERC transmission planning
standards. Investments mitigate NERC transmission planning standard (TPL-001-4) deficiencies
that have already been identified for both our current system and for the near term transmission
planning horizon (1-5 years). Failure to make these planned investments will result in our failure
to comply with mandatory NERC standards. Please see Staff-PR-l7 Attachments K - M -for
documentation on cost benefit and altematives.
ER 2564 -Devils Gap-Lind 115 kV Transmission Line: This program reconductors and rebuilds
existing transmission lines to maintain compliance with NERC transmission planning standards.
Investments mitigate NERC transmission planning standard (TPL-001-4) deficiencies that have
already been identified for both our current system and for the near term transmission planning
horizon (1-5 years). Failure to make these planned investments will result in our failure to comply
with mandatory NERC standards. Please see Staff-PR-l7 Attachment N and Confidential
Staff-PR-Ol7 Attachment O for documentation on cost benefit and alternatives.
ER 4116 - Colstrip Capital Additions: This ER represents programmatic ongoing capital
expenditures associated with Units 3 and 4 at Colstrip. Talen Energy operates and maintains
Colstrip on behalf of all the owners. Each year they provide Avista with capital project
summaries. Each project has a NPV and IRR calculated where appropriate, while projects
identified as a reliability or environmental compliance driven project will be identified as such and
an NPV/IRR is not calculated. Avista's share of the costs for these units is l5o/o, which represents
Avista's fractional ownership of Units 3 and 4. Additionally, certain common expenditures are
incurred for the benefit of all four units, generally, our share of the costs for these common
expenditures is approximately 10%. Please see Staff PR_017C Confidential Attachments A
through F for annual documentation of the capital project summaries provided by Talen Energy. A
description of what each attachment includes is as follows:
CONFIDENTIAL Attachment A - 2017 Common Capital
CONFIDENTIAL AttachmentB-2017 U34 Capital I of 2
CONFIDENTIAL AttachmentC-2017 U34 Capital2 of 2
CONFIDENTIAL Attachment D- 2018 Ul-4 HR Worksheets
CONFIDENTIAL Attachment E - 2018 U34 HR Worksheets
CONFIDENTIAL Attachment F - 2019 U34 Hurdle Package 7.18.18
Page 3 of6
ER 4140 - Nine Mile Redevelopment: This ER addresses the redevelopment of Avista's Nine
Mile hydro generation facility, which was based on the regulatory requirement under Avista's
FERC license to the Spokane River to restore Units I and2, which had been out of service since
2005 and 2012, respectively. Please see Staff-PR-Ol7 Attachment P and Staff-PR-017 Attachment
Q for the Spokane River System Hydro Assessment Project Team Recommendation and the
Spokane River System Hydro Assessment Summary Report, respectively, which document the
economic considerations related to the redevelopment project.
ER 4148 - Regulating Hydro: The decision to include projects in the Regulating Hydro Program
is not based on IRR or a cost benefit analysis.
The purpose of the Regulating Hydro Program is to provide funding to achieve high levels of
availability for Avista's Hydroelectric Power Plants that have storage available in their reservoirs.
This storage capacity enables these plants to operate to support energy supply, peaking power,
provide continuous and automatic output to match changing loads, and other types of services
necessary to provide a stable electric grid and to maximize value to Avista and its customers.
The projects are vetted holistically by Operations and Engineering to evaluate the issue, determine
available options, confirm prudency, and bring the potential solutions forward for discussion with
the Advisory Group consisting of the Plant Managers and the Manager of Hydro Operations. A
similar vetting process is followed for funding emergency projects with the impacted stakeholders
included. Over the course of the year, the program funding is actively managed by the Manager of
Hydro Operations through monthly analysis and reporting for end of the year expected spend.
The four plants included in the Regulating Hydro Business case are: Cabinet Gorge (Idaho) and
Noxon Rapids (Montana) on the Clark Fork River and Long Lake (Washington) and Little Falls
(Washington) on the Spokane River.
Examples of projects in the program for each plant in 2018 and 2019 are included below:
Cabinet Gorge:
o Emergency Motor Control Center Roof Replacement - This building houses
the electrical supply and controls for the Spill Gates at the Dam. The roof was over
60 years old and needed to be replaced to protect the equipment
. 878 and 87BT Relay Replacemerl - These relays are the main protection
system for the generators in the plant. They were past their useful life and need to
be replaced and upgraded to the latest technology.
Noxon Rapids:
c Transformer Serveron Communications- This project upgraded the internal
monitoring system for the High Voltage Generator Step-Up Transformers. The
monitoring system provides information on the health and condition of these
transformers.
o .lpillway Emergency Generator Replacement - the current generator was the
original one from the construction of the dam. The generator was past its useful life
and not reliable. During loss of power to the plant, the generator enables opening
the Spill Gates.
Long Lake:
Page 4 of6
Dike Rehabilitation - During high water in 2018, this dike had been damaged.
The dike protects the parking lot and the powerhouse from flooding. This project
repaired the dike and put in provisions to project it in the future.
Spill Gate Refurbishment -Due to their age, the seals, wheels and paint on the
gates were past their useful life. This project refurbished the gates including
sandblasting and painting, new seals and wheels.
Little Falls :o Dam Overtopping Mitigation - Concrete on the forebay of the dam was
nearing 100 years old and was failing in multiple areas. This project addressed this
issue.o Roll Up Access Door Replacement - the access door was past its useful life
and was becoming unreliable. This door is the main access to the powerhouse for
maintenance and construction.
ER 4152 - Little Falls Powerhouse Redevelopment: This ER falls under the Little Falls Plant
Upgrade business case, which addresses the modernization of the Little Falls facility. The existing
equipment prior to undertaking this project ranged from 60 to over 100 years old. As a result,
Avista began to experience increases in forced outages at the Little Falls facility. Please see
Staff-PR-017 Attachment R, which is a presentation detailing the increases in forced outages since
2004.
ER 5005 - Information Technology Refresh Program: This ER provides for the refresh of
information technology assets to align Avista's information technology tools with technology
lifecycles to replace these assets before they become obsolete, at which point the safe and reliable
operation of Avista's electric and natural gas operations may be compromised. Capital
expenditures under this ER address information technology lifecycle replacement. This program
manages technology replacement according to manufacturer product roadmaps with an objective
to maintain infrastructure performance and align infrastructure assets with business demand for
capacity. Technology is not only subject to the traditional mortality rate or lifecycle, but it is
compounded by planned obsolescence, also known as technology obsolescence. That is, whereby,
the technology asset although within its functional lifespan is technologically flawed or no longer
meets the need of users or customers, as expectations increase due to newer and more powerful
technology that is available in the market. Reliance on obsolete technology for automated business
process presents signif,rcant risk that may only be solved with the reinstatement of a manual
process. Sustaining automated business process by replacing automation with workforce would
increase labor expense.
Additionally, with the rapid pace of technological change, technology vendors require continuous
upgrades to maintain system maintenance and support, which can include security patching, bug
fixes, version upgrades, interoperability, and compatibility with other technologies. These
upgrades can in turn drive subsequent system replacements, creating a cascading event of change.
Therefore, vendor roadmaps and technology asset lifecycles are data points that inform on how
best to plan replacements, while meeting business value and strategic alignment, within the
constraints of resource capacity and funding, which in turn can result in deferred replacement
introducing the risk of technology failure. This program is also in place to address asset growth,
driven by business need.
A product obsolescence working group, consisting of Technology Domain Architects, maintains
technology roadmaps to inform Program Steering Committee members of project
Page 5 of6
a
a
demand. Project demand is assessed against funding constraints each year and prioritized based
on risk of technology impact to the business.
ER 5006 - Information Technology Expansion Program: This ER provides for the
implementation of new information technology in Avista's operations, including, but not limited
to, business process automation and technology supporting business process efficiency
improvements. Project steering committees do evaluate each project to determine whether or not
to implement a technology expansion project based on the business needs and associated benefits
that the implementation would provide. This program addresses expansion to meet performance
and capacity requirements for Business Application Systems, Network Systems, Distributed
System, Central Systems, Communication Systems and Technology for Facilities. The Program
Steering Committee consists of members in management positions that are identified and
responsible for prioritizing the projects within this program. The Steering Committee is also held
accountable for the financial performance of this program. The Program Steering Committee has
regular meetings to review the progress of the program and to make decisions on the following
topics: Project prioritization and risk; Approving business case funding requests; new project
initiation and sequencing. The Program is facilitated and administrated by an assigned Program
Manager within the Enterprise Technology (ET) Project Management Office (PMO) Department.
The project queue is reviewed periodically and consists of projects needed to maintain the
reliability and performance of all technology systems to enable business productivity.
In 2017, ERs 5005 and 5006 were split into various smaller business cases to provide more
transparency, line of sight and investment driver to each technology investment, including
visibility to the business function they enable. Any investments in-flight nested in either ER 5005
or 5006 were to remain in the existing business case to provide retroactive consistency in
administrative and financial reporting. However, to allow the two ERs to sunset, all new
investments were chartered under new separate business cases. Cost benefit analyses or Internal
Rate of Return are not calculated for ER 5005 and 5006 as technology vendors can change
licensing frameworks and change ownership and therefore, it is not appropriate to calculate a rate
of return or cost benefit.
ER 5143 - AU.com & AVANet Redevelopment: Like many businesses today, Avista was
experiencing continued growth in the use of its customer website, AvistaUtilities.com. The
website was originally built in2006-2007, but because the technology landscape has advanced so
quickly, the site did not meet current web best-practices for customer usability and security and
therefore, no cost/benefit analysis or IRR was performed. This project updated and improved the
technology, overall web usability, security and customer satisfaction. Not replacing the aging
website would limit its potential for customer engagement opportunities and open it to security
risks. The website is part of Avista's plan to provide customers a more effective channel to meet
their expectations for self-service options, including mobile, energy efficiency education, and to
drive self-service as a means to lower transaction costs.
ER 7131 - COF Long Term Restructuring Plan Phase 2:Phase 2 of this plan is a continuation
of the long-term program to meet our ongoing and future operating needs by renovating,
improving and expanding our existing central office and operating facilities. This phase is
composed of three major projects that include re-routing a city street adjacent to our campus in
2017, constructing a new building for our fleet operations in 2017 and 2018, and constructing a
parking garage in2019. Please see Staff-PR-017 CONFIDENTIAL Attachment S for the Parking
Garage Analysis.
Page 6 of6
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO
CASE NO: AVU-E-19-04
REQUESTER: IPUCTYPE: Production Request
REQUEST NO.: Staff-018
DATE PREPARED: 0710212019WITNESS: Karen Schuh
RESPONDER: Karen Schuh
DEPARTMENT: Regulatory Affairs
TELEPHONE: (509) 49s-2293
REQUEST:
Please provide all documents the Company used to demonstrate the benefits realized by the
Company for each capital project included in the Company's response to Request No. 16.
RESPONSE:
Please see the Company's response to Staff PR_017 for a detailed description of all ER's
cost/benefit over the $2 million threshold discussed above.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO.:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-04
IPUC
Audit Request
Staff - 026
DATE PREPARED: 0710112019WITNESS: Elizabeth Andrews
RESPONDER: Annette Brandon
DEPARTMENT: State & Federal Regulation
TELEPHONE: (s09) 495-4324
REQUEST:
Please provide the following direct labor related information as recorded for the twelve months
ended December 31, 2016-2018. Information, where applicable, should be listed by O&M
expense, other expense, construction and other account groups (listed by functional categories, i.e.
generation, transmission, distribution, customer, A&G, etc.). Please provide the information on a
system-wide basis, and on an Idaho electric and Idaho gas jurisdiction basis. The response should
include wages and salaries for each employee category (officer, exempt, non-exempt, and union),
paid time-off, overtime, bonuses, incentive pay, and overheads for pension, benefits, and payroll
taxes. Please also include average and year-end number of employees by employee category.
Include part-time and temporary employees as full-time equivalents.
RESPONSE:
Please see Staff PR_026 Attachment A for 2016-2018 total labor and benefit charges for System
Electric and System natural gas. I Data is provided by report category (capital, O&M,
non-operating, etc.), by functional category (Administrative and General, Distribution,
Transmission, etc.) and by expenditure type (loading, overtime, paid time off, regular labor). Data
is not readily available by employee category. Please note benefit compensation is an overhead
loader which is applied to the general ledger account the labor costs originate from.
Please see Staff PR_026 Attachment B for 2016-2018 incentive compensation (actual paid). Data
is provided by report category and employee group (executive, non-executive, exempt, union).
Please see Staff PR_026 Attachment C for the year-end employees by type, and report category
on a system basis. Please note the Full Time Equivalents (FTE) are calculated based on total hours
for the year divided by 2080. The Company's general ledger system does not track employees by
FTE.
Due to the voluminous nature of this information, data is provided in electronic format only
I Please see Company Adjustemnt 1.00 Allocation Factors for the Idaho Electric and Idaho Natural Gas allocation
factors.
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12 months ended 12.2018 System
Hours
o&M
Overtime
Paid Time Off
TotalO&lM
Officers
17,66t
Exempt
704,332
Non-Exempt
439,603
10,961
69,105
Union
654.797
88,306
!0!,225
Total Labor
1,816,393
99,267
276,6503,190 100,129
20,851 804,46L
514,403
67,663
519,670 447,329 2,792,370
Capital
Oveftime
Paid Time Off
Total Capital
135,818
7,722
L9,964
631,734
84,167
108,043
1,287,955
85,889
r95,570
582,055
79,941
Ll,715
157,504 a29,944 1,569,514
9 Non-Utility/Other
10 Overtime
11 Paid Time Off
5,677
934
L2,9L7
t78
1,782
6,591
7,024
76
105,120
7,202
t4,sol
12 Total Non-Utility Other 6,611 91,656 t4,877 13,691 726,429
13 Total 27,462 1,478,L83 692,045 7,690,964 3,888,654
14
15
16
17
FTEs
o&M
Capital
10 347
280
44
250
76
7
407
399
7
1,054
755
61Non-Utility/Other
Tota I 13 7L7 333 7,870
18 O&M and Capital FTES 10 667 326 806 1,809
Assumptionsi
Paid time off (actual) is allocated between employee type on the same basis a5 paid time offaccrual.
TheCompany'sadjustmehtisbasedonO&MRegularTime,PaidTimeOffLoadingsandOvertime. Non-Utility/OtherandCapital
are excluded from the adjustment.
Staff_PR_026 Attachment C Page: 1 of 3
1
2
3
4
12 months ended 12.2017
Hours
o&M
Overtime
Paid Time Off
Total O&M
Officers
77,25r
Exempt
666,876
333
Non-Exempt Union
616,085
81,061
LL3,LL2
Total Labor
7,757,329
96,3L7
304,6032,921 LL3,748
457,777
74,923
75,4L6
20,t78 780,357 547,456 2,r58,249
Capital
Overtime
Paid Time Off
Total Capital
5L7F7s 1s1,948 609,372 7,278,895
s4t 3,728 92,070 95,739
Non-Utility/Other
Overtime
Paid Time Off
Total Non-Utility Other
6,381 7s,978 15,010 19,101 116,410
399 91 6,137 6,627
537 5,278 786 557 7,098
6,918 81,535 15,887 25,795 130,135
Total
I
FTEs
o&M
Capital
Non-Utility/Other
Total
27,096 r,442,L08 735,711 1,628,095 3,833,010
10 375
279
39
263
83
8
390
381
L2
1,038
3
743
63
13 693 354 783
O&M and Capital FTES 10 654 346 770 L,780
Assumptions:
Paid time off (actual) is allocated between employee type on the same basis as paid time off accrual.
The Company's adjustment is based on O&M Regular Time, Paid Time Off Loadings and Overtime. Non-Utility/Other and Capital
are excluded from the adjustment.
Staff_PR_026 Attachment C Page: 2 of 3
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