20200730Avista to Staff 2-7.pdf

JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUESTNO.:
AvISTA coRpoRArIoN zozot\ftTd3?t z,rs
RESPONSETOREQTIESTFORINFORMATION IDAHOPABLIC
UTILITIES COMMISSION
IDAHO DATE PREPARED: 0712412020AVU-E-20-05 WITNESS: N/AIPUC RESPONDER: L. Andrews/D. James
Production Request DEPARTMENT: Regulatory AffairsStaff-002 TELEPHONE: [phone]i
REQUEST:
Please clarifu if the Wildfre Resiliency Plan is an additional program on top of the Vegetation
Management Plan. If so, will there be cost savings within the Vegetation Management Plan? If
not, will there be a cost increase to Vegetation Managemant Plan?
RESPONSE:
Vegetation management has been an integral part of maintaining Avista's overhead electric
distribution and transmission lines. Historically, Avista has trimmed and removed trees with a
focus on improving reliability and reducing the frequency ofoutages. With the increasing threat of
wildfires as a result ofpoor forest health, past hre suppression activities and periods of prolonged
drought, Avista plans to enhance its vegetation management practices especially in elevated fire
tlreat areas - distinguished as Wildland Urban Interface (WUI) Tier 2 & 1 arcas (see the
Company's Idaho Wildfire Resiliency Plan Deferral Application ("Deferral Application"),
Attachment D).
As described in Attachment A to the Defenal Application, the bulk of the company's Wildfire
Resiliency Plan includes incremental program capital and expenses are associated with enhanced
vegetation management and grid hardening (over 85% of the overall program costs). Specific to
"Enhanced Vegetation Management", costs include expenditures associated with: 1) Transmission
and distribution system Digital Data Collection (LIDAR - light detection and ranging); 2) Fuel
Reduction Partnerships; 3) Widening of Transmission Right-of-way; 4) Annual fusk Tree surveys
and related follow-up work; and 5) Public Outreach, review and support of the "Right Tree, Right
Place" Campaign. (See Attachment A, pages 37 - 49 for details.)
The ten-year operating cost forecast to implement a fire-informed, enhanced vegetation
management program is approximately $51 million dollars and will sunnlement or increase
current maintenance activities and costs. These wildfire specific vegetation management activities
will be implemented in addition to, not in place of, the regular five-year vegetation management
cycle to maintain system reliability. In addition, the planned capital expenditure is approximately
$5.1 million over the same ten-year period.
For ease of review, in Table No. I below, the specific costs from the Company's Wildfire Plan
have been summarized into their respective groupings discussed above (per pages 37-49 of
Deferral Application Attachment A - Wildfrre Resiliency Plan). ln addition, Illustration No. l,
(copied from page 6 of the Deferral Application, Attachment C - Wildfire Cost Plan Jan 2020),
provides the annual capital and operating expense planned for each year ofthe ten-year period.
Page I of5
Table No. I - Enhanced Vesetfltion ent Annual & l0-Year Cost Plan
Enhanced Vegctation Management (qDsl
ErFn*
S5r-2
C.plt l
95.1
DescriptionAnoual loYaa,Anneal lcYarr
Rltht Tr€e, rlSht Place (Publk
Safety lnltlatlvel
Elc.tric Distdbutlon Annual
Risk Tru.
Ostrlbudon DNsltd ha
Collecdon
TraBmission Didtal ha
Colle.don
Contormlnt Transmlsslon
Riglt-of-Way
Fuel Reduction Partnership
lncorporate VegEtation
Manatement into
Ost ibution DesiSn
s zso s 25.50
$ 1.ms 9.60
S rmS 7.8
S o.7s S 6.&t
$ 0.17 s l.so
s 0.5o s s.m
$ 0.01 $ 0.10
Reduce interaction b€twean
v€t€tatlon and AvistCt
dlstrlbutlon f.dlltl€r,
To contact c-uitomerr locatcd ln
al€raatcd fiae t rreat eas and
work wit r tham to Emove td I
growlng tEcs naar powrrllnes
(/(,x sysr.ml.
Annual dlgltal iuireys of the
elcyatad flre Urreat ras.lncludes
comM€r pott p,oc€r3in8 ('106
sFtam).
Arnual dlSltal iurvey ol the
tranimlsrlon syslcm ( X,'6).
Wldcn transml$ion llHights-ot-
way ln el€vated firc risk are6
(2016 Systeml.
Participate in annual fu el
reductim eflorts conducted by the
lo.al Fi.e DlsticG (eag.
Washintton DN& ld*o lDLl.
lncorpoiate vetetation deari.rg
irto dirtri bqtion design pacftages
(addhlon to x,ori omccrsl.
Total Enhan ed Vetetatlon
MEmnt
S s.4a S sl"rr 5 0.s1 I 5. '
IIIustrf,tion No. 1: Annual Caoital nnd Exoense for the Ten-Year Period:
Enha nced Vegetation Ma nagement
Plan Cost Foreca st
Page 2 of 5
Existing Vegetation Management - Actual Balances, ldaho and System
ldaho Syste m
Transmission TotalTransmissionTotalDistributionDistribution
z,t;,/.,s!,i119,959 45a4.95,7,A*,45 '"3m,084 9,1s8,3O92018 Actual
&1/18,368 '"016123 9,1il,49tz46r,7E 349,r4O 481,.,8652019 Actual
2,370,W 3n,w 4747,W 7,900,000 ,,100,0m g,m,m2020 Forward
Please note in Table No. I the "Amual" column amount of $5.42 million is an average annual
amount, whereas Illustration No. I shows the plarmed amount by year, reflecting a ramp up and
down over the ten-year period.
The costs provided in Illustration No. I are costs expected beyond (or incremental to) the existing
levels of annual vegetation management experienced by Avista. For comparison, Table No. 2
below provides the actual annual distribution and transmission existing vegetation management
costs for Idaho and on a system basis for the period 2018, 2019 and estimated for 2020 (and
beyond).
Table No.v tion
Table No. 3 below, provides the incremental Wildfire Enhanced Vegetation Management balances
for the frst five years ofthe ten-year plan.
- All Ca ries 2020 - 2
o amounts varv s o,ve, as ue to
COVID) and re-allocated to the remaining 9 years ofthe plal,
Of the categories discussed above in Table No.l: ArLnual Risk Tree; Right Tree, Right Place;
Digital Data Collection; Fuel Reduction Partnerships; Transmission fught-of-way; and
Distribution Design; only the incremental Distribution Risk Tree expense is an overlap with costs
currently existing with the vegetation management program. AII other categories are new
incremental costs, to the existing vegetation management work. Table No.4 below, however,
provides the incremental "subset" of"Distribution Risk Tree only" balances for the period 2020 -
2024.
TableNo.4-Enh ced Vesetation Manesement -Risk Ontv 2020 - 2024
tlncremental) Enhanced vegetation Management - All categorles - ldaho and system
Distribution
2020 32s,dx)
Transmission
mldaho
tLt 670
Transmission Distribution
l,ruto,(m
Total
725,W
Total
67\6m
20zt 1,s80,000 229,181 ',809,181 3,gso,ooo 562000 4617,000
2.022 2,o8o,ooo 315,081 2,391081 s,An fiD 9r7,dn 6,112000
totl 2,28n,W 315,081 a59to81 s,zn (xn grz(xn 6,617,W
zo?4 2,24O,WO 31q081 asst081 t6m,Go 917,Ut0 6,517,000
(lncrementall Enhanced Vetetation Manage ment - Annual RiskTree Onlv - Estimate ldaho and System
ldaho System
Distdbution Transmission Total Distribution Transmission Total
lncremental
xao s20,0@ 520,mo ,":m,(m 1,3m,000
x)zt Lm,m L000,m0 2,5m,0m as0,0@
2An 1,240,0m L24O,m 3,r@,@0 11m,0m
L240,m02At31\240'W 3,1m,0m 3,100,0m
Page 3 of5
For both Table Nos. 3 and 4, allocation of estimated costs to Idaho was determined as follows:o Transmission capital and expenses - allocated based on the Company's current
Production/Transmission Ratio (P/T Ratio). The P/T Ratio (currently 65.64% Washington
134.360/o Idaho) is updated on an annual basis in December, and is used for all production,
transmission expenditures.r Distribution capital and expenses - specific to Enhanced Vegetation Management, was
allocated 40% Idaho i 60% Washington. This split reflects the higher miles percentage
share in the WUI Tier 2 and 3 risk areas expected in ldaho, versus Washington. The total
estimated WUI Tier 2 and 3 high fire risk area miles is 3,268, with 1,295 in Idaho and 1,973
in Washington. (As discussed in Avista's response to Satff PR_003, estimated Grid
Hardening distribution expenditures were also allocated to Idaho, based on the 40% Idaho/ 60% Washington split, for preliminary analysis of the impact to Idaho customers;
whereas, expenditues lor the categories "situational awareness and "operations and
emergency response" were split based on the Company's current electric
Washington/Idaho approximate operations split of 70%/30%. However, the Company is
proposing to defer actual costs charged to Idaho as they occur, and therefore, will vary
from the allocated estimates provided here.)
With regards to cost savings from the Company's Wildfire plan, as noted starting at page 19 of
Avista's Deferral Application, the goal of wildfire resiliency is to reduce the overall risk associated
with wildfires. Il short, the benefits ofthis plan are largely measured in terms ofrisk reduction for
all parties involved. The Company, however, recognizes a potential for costs savings and cost
shifts from operating and maintenance expense towards capital investment. The overall impact of
cost savings and cost shifts will not be well understood until the plan is operational and
perlormance data can be obtained and analyzed. However, one ofthe objectives of this plan is to
reduce the number of equipment failures and tree related outages and by doing so, avoid
emergency response.
The table below (provided as Table No. 2,page2O ofthe Deferral Application), lists a number of
potential cost savings opportunities associated with the Wildhre Resiliency Plan.
The first two rows in the table above reflect savings potential opportunities within the Enhanced
Vegetation Management Plan area (i.e. Annual fusk Tree, Right Tree-Right Place Program, and
Digital Data Collection). However, as previously noted, the overall impact ofcost savings and
I mpro\red System Performance
(fewer outages)
Automates data gathering
process for vegetation and
structure condition inspection
lmproves System Perf ormance
(fewer outages)
Enables remote monitor and
control or equipment
Reduced spend on emergency
response and unplanned repain
Reduces field inspection
activities. Enables computerized
QA,/QC functions
,Reduced spend on ernergency
response and unplanned repairs
Reduced service related truck
rolls
6rld Hardening
se
Annual Rlsk Tree and Rltht
Tree Ritht Place Programs
Digital Data Collection
Better prepared and equipped
first respondeR
Reduces the risk of injury and
accidents
Situational Awar€ness
(Eommunication & control
systemsl
Operations & Emergency
Plan Element Benefit Cost Savings/Shift
Page 4 of 5
cost shifts will not be well understood until the plan is operational and perfomrance data can be
oblaircd and analyzed and thus cannot be estimated at this time.
Page 5 of5
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION;
CASE NO:
REQUESTER:
TYPE:
REQUESTNO.:
IDAHO
AVU-E-20-05
IPUC
Production Request
Staff-003
DATE PREPARED: 0713012020WITNESS: N/A
RESPONDER: J. Miller / L. Andrews
DEPARTMENT: RegulatoryAffairs
TELEPHONE: (s09) 49s-8601
REQUEST:
Please provide estimated rate impact to Idaho ratepayers, both on a percentage basis by rate class
and as a change in the average monthly bill for a typical residential customer.
RESPONSE:
Staff PR_001 provides the l0-Year estimated annual capital and expense amounts for the
Company's Wildfire Resiliency Plan on a systan basis.
For illustration purposes, Table Nos. 1 and 2 provide the incremental estimated annual capital and
expense balances for the first five years ofthe Company's ten-year Wildfire Resiliency Plan, on a
system and Idaho share basis. (As can be seen from the analysis in StafLPR_001 - Attachment A,
plan annual totals beyond 2023 for capital and expense are consistent year to year, with the
exception of enhanced vegetation management expense, which varies year to year over the
ten-year period. (See Staff_PR_O02 for detail information associated with the Enhanced
Vegetation Managemsnt portion of the plan.)
TableNo.2-Wildfire Plan Annual Estimated Canital - Svstem and Idaho /.2020 - 20241
Total Wildfire Plan . ldaho and System (Gpltall
ldaho
Distribution Transmission Total
20m 294 6!'1
Svstem
Distribution Transmission Total
3,255 2,010 5,265
202L 5,GB 1"361 6,i159 13,025 3,960 16,98s
20?,2 8,?5;2 2,OiI2 to,t 4 lt,L7O 5,88s 27,O55
?UB to,o;22 L,996 12,018 8,570 5,810 31,380
xn4 to,o72 ,"996 12,018 8,57C)5,810 3r"380
2025 - 2029 not pto\lided, amounts consistsnt with that shown for 2023 and2024
Table No. 1- Wildlire Plan Annual Estimated Exoense - Svstem and Idaho (2020 - 20241
Total wlldflr€ Plan - ldaho and system {Expense}
ldaho
Distributloh Transmission Total
20m 606 302 9(D
System
Distribution Transmission Total
1,535 88{)2.4t6
2021 ,"610 455 4066 4,047 1,,38 5,172
202:2 Z,LL7 s5()ztrt 5,315 t@2 6,918
20?j 2,tz?550 LE|4 5,E34 Lfi?7,436
2024 2,2q)550 t"w 5,752 t,@2 7,lg
2025 - 2029 not provided, amounts do not materially change from that shown fo.2023 and 2024. Annual differences mainly relate
to EnhaDced Vegetation Managernent disribution expense. See Staff PR 002.
Page I of3
In response to this production request, the Company has made various assumptions to estimate the
impact to Idaho ratepayers:
First, for both Table Nos. 1 and 2, allocation of estimated costs to Idaho was determined as
follows:o Transmission capital and expenses - allocated based on the Company's current
Production/Transmission Ratio (P/T Ratio). The P/T Ratio (currently 65.64% Washington
I 34.J6o/o ldaho) is updated on an annual basis in December, and is used for all production,
transmission expenditures.o Distribution capital and expenses * specific to Enhanced Vegetation Management and
distribution Grid Hardening, were allocated 40% Idaho / 60% Washington. This split
reflects the higher miles percentage share in the WUI Tier 2 and 3 risk areas expected in
Idaho, versus Washington. The total estimated WUI Tier 2 and 3 high fire risk area miles is
3,268, with 1,295 it Idaho and 1,913 in Washington. Whereas, expenditures for the
categories "situational awareness and "operations and emergency response" were split
based on the Company's current electric Washington/Idaho approximate operations split of
70%/30%. The Company, however, is proposing to defer actual costs charged to Idaho as
they occur, and therefore, will vary from the allocated estimates provided here.)
Second, although it is speculative to assume how any rate increases in future proceedings will flow
through each rate schedule, for illustrative purposes, the Company has assumed a uniform
percentage of base revenue allocation.
Third, for illustrative purposes only, the Company has assumed a GRC effective date of July 1,
2021, with cost assumptions including Wildfire Plan expenses for the period July 1,2021 June
30,2022 (approximately $2.4 million) and planned capital additions in-service during 2020
through December 2021 (approximately $8.5 million). (Capilal additions in 2022 are expected to
go into service between August and December 2022, artd therefore excluded.) The estimated
revenue requirernent associated with these expenditures allocated to Idaho customers is
approximately $3.68 million (1.5% overall).
Lastly, assuming the Commission approves the Company's Wildfire Resiliency Deferral
Application, the estimated Idaho share of the Wildfire Plan deferral (capital and expenses)
between the deferral period in 2020 through June 30, 2021 is approximately $2.78 million.
Assuming a three-year amortization of the deferral, the annual amortization would be
approximately $926,000 annually (0.4% overall).
The combined revenue requirement of the above items, impacting Idaho customers, therefore,
totals approximately $4,606,000, or 1.970 overall.
The impact to Idaho customers on a percentage basis by rate schedule is as follows:
Page 2 of3
Type of
Service
Schedub
Nurnber
Base Tariff
Revenue
Under Present
Raies
Total Bilbd
Relenue
at Presen,
Rates
Bilbd
Percentage
Change
Wfldfire Base
Re\€nr Percentago
Requirement ChaDge
Resilenthl
General Servbe
Large General Servbe
E*ra l-arge General Servbe
Charwater
Prrying Servbe
Street & tu€a Lights
Total
1
|t ,12
71 ))
25
25P
3t,32
4t-49
$112,045
s35,529
$48,898
$17,688(r, ({,
$s,716
$3.636
$246,064
$2,097
$665
$915
$331
$422
$107
$68
r.9%
1.9%
19%
19%
19%
r.9%
1.9%
$110,693
$36,460
$50,370
$r 7,793
$22,660
$s,842
$3,48s
$247,30r
19%
1.8%
1.8%
1.9%
1.9%
1.8%
2.0%
19%$4,606 1.9%
An average residential customer using 898 kWh's per montl could see a billing increase of $ 1.62
per month, or l.9o/o ($86.27 to $87.89).
Finally, after the initial year including O&M in base rates, the arurual revenue requirement impact
to Idaho customers is estimated to be approximately $I.6 million, associated with incremental
capital additions ($ 12.0 million annually), or 0.6% overall."
Page 3 of3
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-20-05
IPUC
Production Request
staff-004
DATE PREPARED: 07 /2912020WITNESS: N/A
RESPONDER: J. Pluth i D. James
DEPARTMENT: RegulatoryAffairs
TELEPHONE: [phone]
REQUEST:
Please provide depreciation rates for new poles for the entire Wildfire Resiliency Plan. Please
provide amounts as of the current date. Also, please provide the following:
a. Yearly retirement to Plant in Service, retirernent costs, and depreciation expense.
b. Yearly additions to Plant in Savice and yearly depreciation expense.
RESPONSE:
The current ation rates follow:
Please see StafflPR_004-Attachment A for a summary of the annual plant additions, retirements,
cost of removal/salvage, and depreciation expense for calendar years 2016 through 2019 and for
the 6 months ended June 30,2020 for the entire asset category. For the Wildfire Program, the
Company has spent $4,375 in 2020 for transmission assets in ED'AN.355000.
Please note, infrastrucfure investrnent related to the asset categories above will exist going
forward, albeit at accelerated levels from historical levels; increasing the overall distribution and
transmission capital addition levels seen in the past.
As described in the Company's Wildfire Plan (WF Plan), distribution "Grid Hardening" represents
the single largest infrastructure investment in its WF Plan, at a cost of $193.2 million dollars over
a l0-year period (approximately $23 million annually). Pole fires, together with equipment
failures, can potentially be reduced by replacing aging and deteriorated poles, equipment, and
conductors. Though Avista has weli-established programs to replace poles, conductor, and
equipment, existing programs are condition-based and aligned with reliability objectives. Wildfire
grid hardening objectives are focused on reducing the number of spark igrrition events by
acceleratinq the previous planned investment levels over the next ten-years. The following
activities are included in the distribution grid hardening plan:
. Reptace wood crossarms with fiberglass units
. Remove small copper wire
. Install wildlife guards (e.g. fuse holders, lightning arrestors, and transformer bushings)
. Replace wood poles with steel poles at'high value' locations (e.g. highway crossings' corner
poles, and heary equiPment Poles)
. Eliminate open wire secondary districts
. Install wedge/bail clamps at hot tap connection points
I I'aee
Depreciation RateFunctional GroupAsset Cateqory
1 .9304TransmissionED-AN.355000 Poles & Fixtures
257%Distribution8D.ID.364000 Poles, Towers &Fixtures
2.570hDistributionED.MT.364000 Poles,Towers & Fixtures
2.4'lo/oDistributionED.WA.364000 Poles,Towers & Fixtures
In addition to the distribution grid hardening investrnent, the WF Plan also includes Transmission
Grid Hardening. Avista began installing tubular steel transmission poles in the late 1980's, with
full adoption of steel as a standard material item in 2006. Since then, reconstruction projects have
converted a number of circuits from wood to steel, and that trend will continue. Though Avista is
committed to steel conversion, one of the objectives of the Wildfire Resiliency Plan is to accelerate
that process in fire prone areas. The largest capital transmission investment in this Plan is
wood to steel conversion, at a cost of$44 million dollars over a IO-year period (approximately $5
million annually).
2lPage
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUESTNO.:
IDAHO
AW-E-20-05
IPUC
Production Request
Staff-PR-005
DATE PREPARED: 07 129120WITNESS: N/A
RESPONDER: Bob Brandkamp
DEPARTMENT: RiskManagement
TELEPHONE: [phone]
REQUEST: In reference to the page 7, lines 19 and 20 of the Application, are Avista's liability
insurance levels adequate to protect against a single large wildfire? If not, what is the cost to
increase the liability insurance to cover a single large event?
RESPONSE:
Please see Avista's response 005C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL information and exempt from public view and is separately filed under
IDAPA 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code.
Avista considers its current level ofwildfire liability coverage of $ 185 million adequate to protect
against a single large wildfire event. Our estimated "Total Value at Risk" for a 500-year wildfire
event for an average or high-risk scenario range between $180 million and $191 million (see
Staff PR_005C - Confidential Attachment B - Calculation of Liability Exposure for Wildfire
Event, tab 500 YR TVAR).
Core Logic completed wildfire modelling in 2019 of estimated 3d party residential and commercial
property losses for a range of 25 to 500-year wildfire events (see StaflPR_005C - Confidential
Attachment A - Core Logic Risk Assessment). We supplemented this with our own intemal
estimates of Other Liability Damages related to such things as fire suppression, aid and evacuation
relief, and bodily injury. These other damage estimates were derived from wildfire categorical
damage costs identified in a study conducted by Headwaters Economics in 2018. The Other Liability
Damages were added to damages from the Core Logic modelling to arrive at total estimated liability
losses for a 500-year event (see 500 YR TVAR tab of SIaLPR_005C - Confidential Attachment B).
Page I of I
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUESTNO.:
IDAHO
A\U-E-20-05
IPUC
Production Request
Staff PR 006
DATE PREPARED:
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
07/29/2020
N/A
Bob Brandkamp
Risk Managernent
(s09) 495-4924
REQUESTT In reference to page T,lines i 4 and l5 ofthe Application, please provide a copy of
the conhact with Core Logic Consulting Group. Please provide copies of any invoices paid to
dale.
RESPONSE:
Please see Avista's response 006C, which contains TRADE SECR-ET, PROPRIETARY or
CONFIDENTIAL information and exempt from public view and is separately filed under
IDAPA 31.01.01, Rule 067 and 233, and Soction 9-340D, Idaho Code.
Copies ofrequested documentation is provided as follows:
StaflPR_006C - Confidential Attachment A - Core Logic Conhact
Staff PR 006C - Confidential Attachments B and C - Invoices Related to Core Logic Contract
Page 1 of 1
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-E-20-05
IPUC
Production Request
staff PR 007
DATE PREPARED:
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
07/3U2020
N/A
David James
Electric Operations
(s09) 49s-418s
REQUEST:
How many additional labor hours will the Wildfire Resiliency Plan add to annual labor costs,
direct overhead costs, and indirect overhead costs?
RESPONSE:
The Wildfire Resiliency Plan cost forecast (July 2020), anticipates a capital investment of $270
million and $60 million of operating and maintenance expense over a l0-year period. Efforts to
make the transmission and distribution system more resilient to the impacts of wildfire and to
reduce the number of spark-ignition incidents is a significant undertaking, and most ofthat labor
will be contracted. Internally, Avista will align resources with the workload and anticipates hiring
additional staff to meet the dernand. The following organization chart indicates the proposed
Wildfire Resiliency unit that will coordinate and monitor performance of the program overall and
perform the distribution grid hardening planning and design functions.
Fuel Raducton. EOP
i.ining, Exp.ditcd
Rasponsible lor:, Wb.thct D'shboatcl
' LIDAR lniliel Wo
FTE Raouo3t
2-CPCs(R6gul6r)-2020
'l - Susines6 AMlysi (T6mp) - 2020
1 - EngirBor (Temp) - Ajrsady F l6d
Responsibla lN WFR
Plen en l Reporling
Rapq ng, Mohtcs,
Right Trac-Righl Pl.ca
Hardening
Grid
t.lnit @
Temp
New
R€8ular
Assuma - I CPCJ(i2{M[,14{)
Currently, the Wildfire unit consists ofthe program manager (David James) and project engineer
(Doug Forkner). A summer intem (Li WrighQ is assigned to the project. Avista plans to add a
business analyst (1 position) and two Construction Project Coordinators (2 positions) before
mid-September 2020. Labor costs (capital and expense) associated with Avista employees are
summarized on the following table. Contract labor resources are not included.
L
WF Project
coordinator/
cPc Business Analyst
PM - 2023+Entineer
D. Forkner
cPc's Spending
AVA Contract
I 1 I 2020 - s3MI zJ 2 2021-s11.sM
3 3 2022 - s18.4M
5 4 2023 - s22.9M
WF Resiliency
ProBram Manager
.iisrsra
Page I of2
The following table provides the labor resources needed to support the Ten-Year Wildfire Plan, the
estimated annual labor costs ofthose resources (capital and expense), direct and indirect overhead
costs,as well as the l0-Year anti ed costs over the l0-of the Wildfire Plan.
al'rlng
' CPC ossisting with progrom cootdinotion
lljnclearat this time which positions arelwill be back filled. Fu rther analysis to e va luate exact a mounts of bllel[Cllal labor e xpe n se
lsstllltobedetermined.AnyproposedlaborexpenseincludedwiththeWildfiredeferralwillbebasedonincrementalactual
expen5e5.
Noles:
Oyerhead rqles derived from A\)ista resource accounting sharepoint: Direct Overhead includes benefils (48.58%0),
non-seryice (4.81%), and payroll tax (8.25%o) but does not include paid tine of (160/0) and incmtives (12%o).
Employees are encouraged to take paid time of commensurale vrith their accrual rate. Incentive pay is fundetl
lhrough operational cost sqvings, Indired Overhead includes trdvel taining, professional developuenl, and
miscellaneou-s expense based on current condilions. Direct labor cosls bssed on 2020 actual rates for uanager and
engineer (current) and estirnated rates for future hires. Program Ldbor (F /) = Annual Cost * ( I + escqlatiot) ^ (4 r"oo)
- l)/(escalation)
Estimated Labor associated with the Wildfire Resiliency unit represents approximately $ 13
million (capital and expense) ofan estimated $330 total program cost or 3.9o/o.
llme Annual Capltal Expense
(Fl Direcr lebor Allocdtlon Allo.etlon
Direct
OH
lndl.ect
OH
Annual
loaded
Labor
Annual
E$alation
lOYR
Pro8ram
Caplt.l
10.YR
Prcgl.m
Expense TotalResource
s4,78,816
$8,050,619
512,824Ass
$1066,0-rc s1m8,747
6tvr
9.25
___s84ffi
$s2s,ooo $4,8rrF55 $3,163,284
$t9se42s $6,t2,03!
10 ldv.
Atv"
6l.u%
61.&%
5.Vo
5.0%
3.U9. S0 S2,998,7m
3.m,6 s1.06S.070 s710.M7
S156,972
595,674
$261,s78
s1s9.431
7Wo
2ea
w"
zVo
61.&%
61.64yo
61.U%
61.64%
0.5%
s.(h
5.V"
S.Wo
!fi% sO s1,274626
3.m% s251s,204 s628,e01
3.m% s533,455 sm,182
3.m% sL838,697 s459,674
s121,605
$149,976
s299,952
9.25
8
7
wo
4ry.
Wo
Totals
ProSr.m Total
ManaSe r
EnSineer
Totals
+ Bus. Analyst
+2CPC
+l CPC*
+2CPC
s7s,0m
s180,0m
s90,000
s180 mo
lfn,ffi
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