20190725Avista to Staff 40-58.pdf

Avista Corp.
1 41 1 East Mission P .O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
TollFree 800-727-9170
Aftstsrt
Corp,RTCEIVED
Zill9 JUL 25 AH 9: 3t+
July 24,2019
iii,.Fiu iUiLlC
.J i iLiTITS CO.\{MISSION
Idaho Public Utilities Commission
472 W. 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 40, 45, 46, 48, 49,50, 53 & 58. 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 07ll9ll9.
Also included both on paper and on a separate CD is Avista's CONFIDENTIAL responses to PR
053C. This response contains TRADE SECRET, PROPRIETARY or CONFIDENTIAL
information and is separately filed under IDAPA 31.01.01, Rule 067 and233, 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", -;y''-""-zL/
Paul Kimball
Manager of Compliance & Discovery
Enclosures
CC (Email)IPUC (Hanian)
Idaho Forest Group (Miller, Williams, Crowley)
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO.:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-04
IPUC
Production Request
Staff-040
DATE PREPARED: 07 l2ll20l9WITNESS: Elizabeth Andrews
RESPONDER: Joel Anderson
DEPARTMENT: State & Federal Regulation
TELEPHONE: [phone]EMAIL: [e-mail]
REQUEST:
In Adjustment 2.08 - Miscellaneous Restating, workpaper 2018 - Plane Reclass - ID, Transaction
detail tab, please provide additional information to show the purpose of the following flights and
justification for inclusion in Idaho rates:
a. New York Rating Agency Meetings - $114,290
b. ERM Workshop WUTC Open Meeting -I-937 RPS and Conversation - $15,290
RESPONSE:
a. Rating agency meetings are attended annually by Avista Executives. The purpose of the
meetings are to meet with rating agency analysts to provide financial data and to keep them
informed of key issues and initiatives happening at the Company. It is important for Avista to
maintain acceptable credit ratings for various reasons, including keeping the Company's cost of
debt reasonably low. The cost of these meetings benefit all Avista customers and are therefore
allocated to all services and jurisdictions.
b. After review of this transaction, it was determined that it should be charged to Washington
Electric only and not allocated to Idaho customers. The effect of removing this transaction from
Idaho is a reduction of $4,239. ($3,368 for Idaho electric and $871 for Idaho Natural Gas).
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 - 45
DATE PREPARED: 0712012019WITNESS: James Kensok
RESPONDER: Clay Storey
DEPARTMENT: Security
TELEPHONE: (509) 49s-4132
REQUEST:
Regarding Kensok Direct Testimony, Page 8-9, please identify the number of cyberattacks
Avista's system has experienced in each year for2016,2017,2018, and 2019 to date.
RESPONSE:
Due to the confidential nature of this request, the Company will discuss its response with Staff
during its onsite visit.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-04
IPUC
Production Request
Staff- 046
DATE PREPARED: 0712412019WITNESS: James Kensok
RESPONDER: Jim Corder
DEPARTMENT: IT & Security
TELEPHONE: [phone]s
REQUEST:
Regarding Kensok Direct Testimony, Page 14, please provide the expected completion date,
project completion percentage, cost to date, remaining costs to incur, and the expected total cost of
the fiber network lease service replacement program.
RESPONSE:
Expected completion date: Expected completion of the fiber network lease service program is
December 2025. This consists of 50 leased fiber segments that have two contract expiration
points. Of the 50 segments, 3 expire in2019 and 47 expirein2027, with an option to extend for
one 5 year period.
The schedule is a high risk element of this work and each segment contains a planning phase to
refine schedule and cost. Only 3 of the 50 segments have passed the planning phase at this time.
The 2025 completion date is a high level estimate.
Project completion percentage: The program as a whole is 6oh complete. As noted above, of the
50 segments, 3 are active and will complete in2019. Those 3 segments are broken down into the
following completion percentages: Segment | (40%), Segment 2 (15%), and Segment 3 (5%)
complete and estimated total transfer-to-plant in 2019 is approximately $806k on a system basis
and approximately $179k on an Idaho Electric Share basis.
Cost to date (system basis):
$144,030 Life to Date,
978,797 Year to Date 2019
Estimated remaining cost to incur (system basis)
2019 $865,220
2020 $l ,245,290
202153,369,466
2022 53,155,936
2023 $3,242,742
2024 $3,155,690
2025 Sl,2g0,7gg
Expected total cost of the fiber network lease service replacement program: $16,314,013
(system basis).
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-04
IPUC
Production Request
Staff-048
DATE PREPARED
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
07123/19
Jim Kensok
Stephanie Myers
Customer Solutions
(s09) 49s-4620
REQUEST:
Please provide the specific dollar amounts incurred in 2018 and 2019 to date on the mobile
application referenced in Kensock Direct Testimony, Page 19.
RESPONSE:
In 2018, actual project costs were 5277,893.69, In 2019, actual project costs to date are
$605,270.52. The tables below reflect a break out of capital spend on a system basis for this
project.
This project was complete in June of 2019. The total amount that is in service is approximately
$936k on a system basis and approximately $207k on an Idaho Electric Basis. There will be some
additional charges for warranty work and change orders that will be transferred in the July through
September time frame. The difference in the spend amounts listed in the tables above and the
$936k transfer-to-plant is the additional spend amounts from2017 previously incurred.
Labor
Prof Svc/Licensin g/Other
s217,516.14
$387,754.38
Actual
$156,339.42
$121,554.27
Actual
Prof
Labor
r
Subtotals $277,893.69
20t9
Subtotals 9605,270.52
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-04
IPUC
Production Request
Staff-049
DATE PREPARED
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
072412019
Jim Kensok
Stephanie Myers
Customer Solutions
(s09) 49s-4620
REQUEST:
Regarding the Request above, when are the upgrades to the mobile application expected to be
released?
RESPONSE:
The billing and payment upgrade to the mobile app was released into production in June of 2019.
A mobile app release is anticipated Q3 2019 to address bug fixes and general user experience
improvements. The next major release of the app will include energy usage information and
general user experience improvements; a timeline has not been established for this work.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-04
IPUC
Production Request
Staff-050
DATE PREPARED: 0712212019WITNESS: James Kensok
RESPONDER: Clay Storey
DEPARTMENT: IT
TELEPHONE: [phone]
REQUEST:
Regarding Kensok Direct Testimony, Page 19, please provide the cost savings to Idaho customers
by implementing the payment card industry compliance (PCD business case.
RESPONSE:
There are no anticipated cost savings achieved by being PCI compliant. Maintaining PCI
compliance reduces the risk of a breach of credit card information, allows us to continue to accept
credit card payments from our customers, and avoids possible future penalties of not being
compliant.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-19-04
IPUC
Production Request
Staff-053
DATE PREPARED: 07 /2412019WITNESS: Mark Thies
RESPONDER: Violet Makhanov
DEPARTMENT: Corp Accounting
TELEPHONE: [phone]
REQUEST:
Regarding the Company's response to Production Request No. 4, please provide copies of
invoices, contracts, workpapers for Rating Agencies - Moody amount of $ 1 10,000.
RESPONSE:
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,
Idaho Code, and pursuant to the Protective Agreement
See Staff PR_053 Attachment A for the Moody's $110,000 Invoice 52019747-000 and
Staff PR_053C Confidential Attachment A for the Service Application with Moody.
INVESTORS SERVICE
Moody's lnvestors Service, lnc.
TWTC at 250 Greenwich Street
New York, NY 1 0007
lNVOICE
t
Patrice Gorton
Di rector Fi nance, Assistant Treasurer
AVISTA CORP.
1411 East Mission
PO Box 3727 MSC-37
Spokane, WA 9S220
Payment inquiries contact:
Collections Team
Phone: [phone]
Email: M [e-mail]
0??O3B7o ?y,toa F€/
INVOICE No.:
REFERENCE No.
CUSTOMER No.:
INVOICE DATE:
s2019747 .000
us18000978
130030
January 25,2018
For Professional Services
000.00
Please do not conlact youlAnalyt]c Teqq regarding thls involce or any olher fe+related matter,
Return This Portion With Your Payment
lnvoice Amount: USD 110,000.00
INVOICE PAYABLE IN U.S. DOLLAR
Fed Wire or@r,rn Invoice Number to : oR Mail Payment with lnvoice Stub tor
SUNTRUST BANK MOODY'S INVESTORS SERVICE
Transit Routing # 061000104 P,O. Box 102597
ACH # 061000104 Atlanta, Georgia 30368i0597
[4oody's Account # 8801939847 USA
Account Name: Moody's lnvestors Service, lnc.
Swift Code: SNTRUS3A pAytyENT DUE UpON RECE1pT
Moody's Taxpayer lD #: 13-195-9883
lnv No.: S2019742 - 000 (Januaiy25,2O18)RefNo.: US1B0O097B
Statf_PR_053 Attachment A Page 1 of 2
Moopv'S
lVlo-opi's Moody's lnvestors Service, lnc.
TWTC at 250 Greenwich Street
New York, NY 10007INVESTORS SERVICE
Type of Fee
Supporting Detail
lssueriFamily Fee Amount
Long-Term Annuat Fee
Avtsta Corp.
Fee Period: January 2018 - December 2018
110,000
Grand Total:usD'110,000
lnv No.: S2019747 - 000 (January25,?O1B](Paoe 2 of 2) Ref No.: US18000978
Staff_PR_053 Attachment A Page 2 of 2
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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-58
DATE PREPARED
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
0712212019
Heather Rosentrater
Julie Lee
Finance
(s09) 49s-43s6
REQUEST:
In Company witness Rosentrater's Direct Testimony, Pages 15 and 21, there are two capital
projects for Storms. Please provide all supporting documentation used to determine the budgeted
amounts. Please also include in your response the historical amounts spent on Storm damages for
the previous five years and the accounts to which they were booked.
RESPONSE:
Storm response is unpredictable both in frequency and severity. Whether a storm is considered a
capital or O&M repair depends highly on the type of damage experienced. Minor storms, such as
those that generate excess vertical loading are frequently maintenance repairs, as no Retirement
Units are damaged, and repair consists of restringing conductor. Capital storms tend to be more
severe, generated by high winds, ice, and wildfire. Budget needs are reviewed by referencing
historical actuals and are normalized by excluding costs of extraordinary weather events. Please
see Staff PR_058 Attachment A for historical budgeted amounts for ID Electric Storms for the
two different ER's mentioned in Ms. Rosentrater's testimony. Both Transmission and
Distribution Storms arcpartof the same business case, so the split between ER205l Transmission
Plant - Storm, and ER2059 Distribution Plant - Storm for 2019 were determined based on YTD
experience at the time the budget amounts were established. For that reason, more was budgeted
to Distribution than Transmission for 2019.
Whether a storm is charged under Transmission plant or Distribution plant will depend on the
types of assets damaged. Per FERC rules, assets classified in FERC 352000 - 359000 are
considered Transmission plant for the purpose of replacement, while assets in the FERC range of
361000 - 373000 are considered Distribution plant. Please see Staff PR_058 Attachment A for
the historical amounts spent on storm damages for the previous five years and the applicable
FERC account the costs were booked against.