20200806Avista to Staff 1-7.pdf

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATTON
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AW-E-20-06 (FCA)
IPUC
Production Request
Staff-0O1
DATE PREPARED: 0810312020WITNESS: N/A
RESPONDER: Joel Anderson
DEPARTMENT: Regulatory Affairs
TELEPHONE: (509) 49s-2811EMAIL: [e-mail]
REQUEST:
On page 8, lines 3-6, of the Application, Avista lists the impacts of three drivers (weather, energy
efEciency and other) on use-per-customer and FCA Revenue for the residential group and non-
residential groups. Please provide supporting documentation for these calculations including
Excel workbooks with formulas intact and enabled.
RESPONSE:
Please see Staff PR_001 Attachment A containing the calculation of the 2019 defened revenue
driver estimates.
RECEIVED
2020 August 5, AM 10:28
IDAHO PUBLIC
UTILITIES COMMISSION
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO
CASE NO: AW-E-20-06 (FCA)
REQUESTER: IPUCTYPE: Production Request
REQUEST NO.: Staff-002
DATE PREPARED: 0810312020WITNESS: N/A
RESPONDER: Joel Anderson
DEPARTMENT: Regulatory Affairs
TELEPHONE: (s09) 495-281IEMAIL: [e-mail]
REQUEST:
On page 7, lines 11-17, of the Application, the Company estimates that in 2019 its DSM programs
reduced residential usage by approximately 30 million kWh and non-residential usage by
approximately 82 million kWh.
a) Please reconcile these results to the Company's 2016,2017,2018 and 2019 DSM
reports and any other reports that apply. Please provide supporting documentation
for these calculations including Excel workbooks with formulas intact and enabled.
b) Please provide the Company's estimate of the total weather-normalized change in
consumption in 2019 for the same customer groups.
RESPONSE:
a.) StaflPR_O0l Attachment A includes a reconciliation of the annual DSM reportsrto the
2019 estimated accumulated savings since the 2016 test year upon which 2019 rates were
established.
b.) The table below shows the change in total weather-normalized consumption from the2016
test year to 2019 total weather normalized consumption.
zOtG Test Year
AVU-E-17 01
2019 Test Year
AVU-E-19-04 Change
Residential
Normalized Annua! Usage
Customer Billings
Average Month ly Use/Cust
Non-Residential
Normalized Annual Usage
Customer Billings
Average Month ly Use/Cust
L,L45,L26,OO3
L,258,258
910
L,O74,698,733
282,902
3,799
L,L75,236,5OO
L,3L7,648
892
t,o72,72L,39L
294,LzL
3,500
30,LLO,497
59,390
(18)
(L,977,342)
LL,2L9
(2ee)
t2016 DSM savings values reconcile to table ES-l in the 2016 DSM report, 2017 DSM savings values reconcile to
table ES-l in the 2017 DSM report, 2018 DSM savings values reconcile to table ES-l in the 2018 DSM report. and
2019 DSM savings values reconcile to table I in the draft 2019 DSM report
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATTON
JUzuSDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AW-E-20-06 (FCA)
IPUC
Production Request
Staff-003
DATE PREPARED: 0810412020WITNESS: N/A
RESPONDER: Joel Anderson
DEPARTMENT: Regulatory Affairs
TELEPHONE: [phone]EMAIL: [e-mail]
REQUEST:
Please provide supporting documentation for the actual monthly revenue for the 2019 deferral
period.
RESPONSE:
Please see StaflPR_0O3 Attachment A for the requested information. Included in the attachment
are the revenue queries for each of the twelve months of 2019. These queries are used to prepare
the monthly FCA journals. The "Electric Revenue Report" tab includes a sunmary of revenue by
rate schedule.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AW-E-20-06 (FCA)
IPUC
Production Request
Staff-004
DATE PREPARED: 081412020WITNESS: N/A
RESPONDER: Joel Anderson
DEPARTMENT: Regulatory Affairs
TELEPHONE: [phone]IEMAIL: [e-mail]
REQUEST:
Please provide all documents used as guidelines in the process for setting up a new customer in
the Customer Care and Billing System.
RESPONSE:
The process of adding customers to the Company's service territory is a standard part of the
operation of the business. The Company maintains an interactive business process manual called
the Flip Chart Knowledge Base on the internal intranet.
Documented SOX Internal Controls that address risks related to new customer hookup include the
controls listed below:
ControllD ControlName Control Description
c.ucB.01 Changes to Customer
lnformation
Monthly, QA procedures are performed to ensure that
CSRs are following handbook protocols when making
changes to customer accounts. The results of these QA
procedures are provided to responsible managers on a
monthly basis so that appropriate action can be taken.
c.ucB.02 New Customer Verification Many times per day, customer applications are received,
and for each customer application (residential and
commercial) a red flag is automatically assigned if the
customer or service address falls within the Company's
set criteria for potential fraud. These flags can also be
manually assigned. CSRs conduct verification procedures
for all customer applications.
The control ID is internally developed labelling. C stands for "control" and UCB stands for "utility
customer billing". QA refers to quality assurance, and CSRs refers to customer service
representatives.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATTON
ruRISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
TDAHO
AVU-E-20-06 (FCA)
IPUC
Production Request
Staff-005
DATE PREPARED: 0810412020WITNESS: N/A
RESPONDER: Joel Anderson
DEPARTMENT: Regulatory Aflairs
TELEPHONE: (s09) 49s-281rEMAIL: [e-mail]
REQUEST:
Please provide supporting detail for the actual number of kWhs as reported in the filing for each
month in the deferral period.
RESPONSE:
Please see Sta{_PR_003 Attachment A for the requested information. Included in the attachment
are the revenue queries for each of the twelve months of 2019. These queries are used to prepare
the monthly FCA journals. The "Electric Revenue Report" tab includes a sunmary of KWhs used
by rate schedule.
JURTSDICTTON:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
IDAHO
AW-E-20-06 (FCA)
IPUC
Production Request
Staft-006
DATE PREPARED: 081412020WITNESS: N/A
RESPONDER: Marcus Garbarino
DEPARTMENT: Internal Audit
TELEPHONE: [phone]s67EMAIL: [e-mail]
REQUEST:
Please provide all internal audit reports and SOX reports detailing the FCA revenue
determination during the 2019 deferral period, including any safeguards or intimal controls used
to ensure that the revenue report is accurate.
RESPONSE:
The SOX Internal Control below includes reviewing the monthly decoupling journal (includes
FCA) and support for accuracy:
ControllD ControlName Contro! Description
C.RATES.07 Decoupling Deferral
Review
Monthly, the Regulatory Affairs Representative
responsible for the decoupling mechanism and the
Resource Accounting Ma nager review decou pling
calculations and the journal entry to record decoupling,
evaluating the accuracy and completeness of calculations
and tracing revenue inputs to source data. ln addition,
accumulated decoupling deferral balances are compared
to independent schedules of decoupling limits to ensure
that recorded deferred revenue does not exceed the
amount expected to be collected within 24 months. Any
amounts in excess of these limits are not recognized for
GAAP financial rep6rting purposes untilexpected to be
collected within 24 months.
This control was tested by Internal Audit as of December 3 l, 2019 with no exceptions noted. There
have been no internal audit reports issued during the 2019 defenal period related specifically to
the revenue process.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATTON
ruRISDICTION: IDAHO
CASE NO: AW-E-20-06 (FCA)
REQUESTER: IPUCTYPE: Production Request
REQUEST NO.: Staff-007
DATE PREPARED: 081412020WITNESS: N/A
RESPONDER: Marcus Garbarino
DEPARTMENT: Internal Audit
TELEPHONE: (509) 49s-2s67EMAIL: [e-mail]
REQUEST:
Please provide all internal audit reports and SOX reports detailing the new customer process
during the 2019 deferral period.
RESPONSE:
There have been no internal audit reports issued or SOX reports related specifically to the new
customer process for the 2019 deferral period.