20210415Avista to Staff 97-106.pdf

ruRISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
RECEIVED
AVISTA CORpORATION 2021Aprit 15,AM i:44
REspoNsEroREQTTESTFoRTNFoRMA'rroN rrrui?#3o'ii"if,o*
IDAHO DATE PREPARED: 0411512021
AVLI-E-21-01 /AVtr-G-21-01 WITNESS: JasonThackstonIPUC RESPONDER: Steve Wenke
Production Request DEPARTMENT: GPSSStaff-097 TELEPHONE: [phone]
REQTIEST: Specific to Colstrip, please describe the methods used to ensure capital investnent
projects were completed in a least cost manner. Please include any guidelines and procedures
documenting these methods.
RESPONSE:
Methods to ensure effective management of Colstrip capital investnent begins at the highest level
with Owner review and approval of the budget. Individual projects are subject to a process where
owners screen a proposed list of items provided by plant staff. Owners can challenge those items
to assure that the final budget is consistent with their interests. Avista specifically assesses items
to determine that the proposal selected are not items intended to specifically extend the useful life
ofthe plant, but rather evaluates projects on ifthey are necessary to keep units running at an
expected level of reliability and at the lowest costs through the next overhaul period. Finally,
Avista screens items for those that are directly associated with environmental and permit
compliance, safety, legal compliance, or other regulation to assure that those obligations are met.
There are three broad categories of capital investrnents at Colstrip. Those projects that are
necessary to allow the unit to fully perform between overhaul cycles (now planned for once every
four years.) A second category are those projects that are required for the site to meet its
environmental performance and permit requirements. A thfud category are Asset Retirement
Obligations (ARO).
Specific to the methods used to ensure investments are completed in the least cost manner, the
plant follows a practice intended to achieve the best value of the invesfinent, not always the least
cost. To the extent practical, staffuses a bidding process to attain the lowest evaluated price for
work being performed.
There are some cases where perhaps there may lower cost options available, but choices are made
to instead use proven reliable parts, contractors, or methods to perform rather than least cost. An
example of this is where original equipment manufacturers (OEM's) or specialty contractors with
a proven record are used to provide inspection and repairs on major components such as the
furbines, generators, exciters, ID fans, etc.
Performance Capital Proiects
These are capital investments needed to provide an expected performance level between overhauls.
These address those items that will assure the highest level of reliability of operation given the
planned perfonnance of the units, system conditions, and budget constraints. The work is
generally limited to those activities needed to achieve this performance level until the next major
overhaul of the unit.
ln general, when a capital need is identified, that need is vetted by plant staff. If deemed
appropriate by plant staff, a "Hurdle Sheet" is prepared by staff engineers that describes the
problem and the impacts of not addressing the problem. The "Hurdle Sheet" includes a
recommended course of action (scope of work) as well as alternative actions that might be taken
to fully or partially address the concern. These include results of requests for proposals or quotes
from preferred suppliers where they can. It also attempts to quantiff the consequences if no action
is taken.
The individual "Hurdle Sheet", along with other supporting documentation such as inspection
reports or other equipment condition information is provided to the Owners for consideration to
establish a budget approval on an annual basis. Once a budget is established and approved,
responsibilities fall to plant staff to manage the details of the project to meet cost expectations.
This includes bidding and award of contacts.
In addition to responsible project engineers' regular interface with contactors to manage the
projects, Plant Staff meets periodically with Plant Management to review the work progress and
status of these projects. Corrective measures may be implemented on projects as a result of this
meeting.
Finally, each month Plant Owners (Owners) are provided a monthly budget to actual report that
identifies all specific projects, the individual project budgets, and their actual expenses. This report
provides a mechanism for the Owners to hack how well a project is performing against its budget.
Additionally, during monthly Owners meetings, a segment of the agenda on 'oPlant
Generation/Performance" is provided where issues by the Owners to the plant or from Plant Staff
to the owners can be brought forward for further discussion and clarification.
Environmental Capital Proiects
Environmental projects are managed in a slightly different way. The process of identiffing a
project may come from either plant environmental performance issues that have been observed
and required corrective or additive actions or as directed by a regulation or permit condition.
Because of the variety of expertise needed to address different issues, a consultant is retained
through a bidding process to provide preliminary designs and estimates. This includes any
preliminary quotes that are included in the cost estimates. The project information and estimates
are pre,pared and provided to plant management.
Similar to the process described to maintain unit performance levels, environmental projects are
screened by plant staff and "Hurdle Sheets" are prepared using the information and estimates
produced by the consultant. These are presented for consideration to the Owners as part of the
budget process. As with the plant perfonnance process, these environmental projects are reviewed
by the Owners and an annual budget is approved by the Owners.
Once items are approved by the Owners, the consultant on the assigned project moves forward
with preparation of detailed design including drawings and specifications, and preparation of bid
packages. The work is then bid to installation contractors and contracts are awarded based on a
lowest evaluated bid basis.
Once the construction work is started, these projects are subject a process of daily inspection
performed by plant staff and Project Managers. A change notice procedure is used to document
changes either requested by the contractor or to implement field changes identified by the engineer.
Once work is completed, a check list prepared for each project is reviewed to confirm the work
meets performance requirements and final documentation is provided. Then contacts are cleared
out.
Finally, like with the plant performance capital, as part of the monthly budget to actual report,
Owners are provided the specific environmental project budgets and their actual expenses. As
with the performance capital, the report provides a high-level overview of how the work is
progressing. Additionally, if there are concerns, they are raised at the monthly owner meetings.
Asset Retirement Oblieation (ARO) Proiects
Those project that are for ARO do not go through the screening process and budgeting process like
the performance and environmental invesfinents as these are required work from initial permitting
of the plant. However, these projects are managed in a similar way as the environmental projects
by plant stafl are part of the monthly budget to actual reports, and are subject to questions at the
Owners meetings if raised by either Owners or staff.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATTON
ruRISDICTION: IDAHO DATE PREPARED: 0411512021
CASE NO: AW-E-21-01 / AVU-G-21-01 WITNESS: Jason Thackston
REQUESTER: IPUC RESPONDER: Steve WenkeTYPE: Production Request DEPARTMENT: GPSS
REQUEST NO.: Staffi098 TELEPHONE: (s09) 495-4197
REQUEST:
Please provide all documentation for plant investments made in Colstrip since the start of 2018
between the Company and Colstrip operating partner, Talen Energy, showing how the Company
was actively engaged with the operating partner to minimize plant investment costs. Please
include any documentation justiffing the need for an upgrade and any analysis comparing the
cost and benefits of other alternatives considered.
RESPONSE:
Please see Avista's response 098C, 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,Idaho Code.
The plant investrnents (i.e. Capital Budgets) for Colstrip are approved on an annual basis by a
majority ownership vote. While documentation may appear to include multiple years, each year
is approved individually and only for that budget year. Those items listed in future years are
informational only and are not necessarily the plan.
Budgets are proposed by the plant operator (Talen) and reviewed by each of the owners.
Discussions on the merits ofprojects is conducted and ultimately owners are asked to vote on their
approval or not for the proposed budget as amended by discussions. In some instances, the budget
may be rejected by vote and modified further before finally being approved.
Avista reviews these proposed items to assess ifthey are required to meeting safety, environmental
compliance, legal requirernents or required to meet current regulations. In addition, Avista
considers projects that are crucial to allow the unit to continue to operate at expected reliability
through the next overhaul cycle. Avista does not approve projects that are intended to extend the
useful life of the plant.
Some illustration of this review and approval is illustrated by the process undergone to approve
the 2019 arrd 2020 capital budgets. Attached is correspondence regarding the 2019 capital budget.
This budget was largely targeted to the overhaul for Unit 4. To that end, projects that were
screened and judged by Avista to be for the purpose to extend the useful life of the plant were
identified. Avista modified the budget request to reflect rernoving those items. This sequence
includes Northwestem expressing concerns about the levels ofreduction for the 2019 budget. Also
included is Avista's approval and subsequent final approval by the Owners. The final budget did
not include several of the iterns that Northwestern felt were essential.
PUC-DR-09\C Confidential Attachment Dl - 181116 Bames - NWE Budget Appvl -
conditional.pdf
Page I of5
PUC-DR-098C Confidential Attachment D2 - 181119 Dempsey - Avista 2019 Budget
Approval.pdf
PUC-DR-098C Confidential Attachment D3 - l8l 120 Dempsey - Revised Budget Proposal
Appvl.pdf
Another illustration of this oversight is with an approval of purchase (and ultimately install) a new
Auxiliary Transformer to replace failing equipment. This was an'ooff cycle" approval to address
what was judged to be failing equipment. In this instance, Avista judged that the work around
arangement that had been in place would suffice rather than spending the money to replace the
Auxiliary Transformer. However, other owners thought differently. Although Avista voted not
to approve this itern, a majority of the other owners voted in favor and this project was approved.
PUC-DR-|98C Confidential Attachment El - 190725 Dempsey - Aux U3 Aux Transf no
Vote.pdf
PUC-DR-098C Confi.dential Attachment E2 - 190725 Dennehy - Aux Transf Appvl.pdf
Still another example is part of the 2020 Capital budget approval process where some items were
required to be approved ahead of the normal budget cycle in order to meet lead times for the
planned overhaul outage for the next year. In this instance, Avista determined that these projects
met our criterion and Avista approved and ultimately the majority of owners approved.
PUC-DR-098C Confidential Attachment Fl - 190826 Dennehy - Request for 2020 Early
Appvl items.pdf
PUC-DR-199C Confidential Attachment F2 - 190826 Wenke - Avista Early 2020 Budget
Appvl.pdf
PUC-DR-198C Confidential Attachment F3 - 190826 Dennehy - 2020 Budget Early Appvl
Items.pdf
An additional illustration is where a proposed budget had some selected projects removed as they
failed to meet criteria that it would not extend the useful life or there were reduced scope options
available that were judged to be effective at addressing the issue, but at a lower cost. This process
is evidenced where it was determined that we did not need to have a spare IP turbine, and chose a
lower cost means to address critical issues with the cooling tower. As can be seen in this
documentation, other owners determined that the Main Turbine Lube Oil Cooler project was not
needed. Below is the documentation of the presentation of the budget, Avista's conditional
approval of the budget without the IP Turbine and reduced scope Cooling Tower work. Finally,
is the documented approval which in addition to the IP Turbine and Cooling Tower work, shows
a majority of owners did not approve the Main Turbine Lube Oil Cooler.
PUC-DR-098C Confidential Attachment GI - 191029 Dennehy - IP Turbine Potentail to
Swap U3 and Ua.pdf
PUC-DR-098C Confidential Attachment G2 - 191111 Dempsey - Budget Approval.pdf
PUC-DR-198C Confidential Attachment Gi - 191112 Cap Budget Approval.pdf
Finally, for the 2021btdget process, there was significant push back from several of the Owners,
including Avista, from the plant's initial proposal. This group of Owners provided direction to
Talen on needs for significant cuts in the budgets. This process went back and forth over the
course of the late summer, through fall, winter, and most of this spring. The plant operated the
first three months of 2021without an approved budget as this impasse continued. At issue is plant
expenses that have increased outside of immediate management control, increased cost due to no
Page 2 of5
longer having Units I and2 to share the expense, and some general increase in expenses. (These
are incremental expenses above 2019 levels, the last year of operation for Units I and2.)
Ultimately, the need to have a budget for the operator to perform, resulted in approval of a budget
on March 24,2021. At this time, the Owners have requested that we start working on a 2022
budget plan.
Each of the capital items for consideration and ultimately approved is supported by a "Hurdle
Sheet". These "Hurdle Sheets" are created by plant management and engineers and provide a
description ofthe problem to be addressed as well as a recommended solution. The "Hurdle Sheet"
also includes possible alternatives to the recommendation as well as information on the risks if the
project is not pursued. These "Hurdle Sheetso'have continued to evolve over time to provide more
decision level information for the owners. These "Hurdle Sheets" are the swnmary source of the
documentation for justiffing the need for a project and any analysis comparing the cost and
benefits of other alternatives considered.
ln 2020, a SharePoint site was added as a resource. This site allowed for plant staff to include
supporting data to the "Hurdle Sheets" where they had them. This data could include inspection
reports, photo documentation, previous project estimates, and other documentation.
When it is believed that a final budget has been developed, a vote is called for by the operator.
When an ownership majority (i.e. 55% ownership share and at least three owners) approves the
budget, the plan is adopted and executed.
The approved capital budget is included as part of the annual "Business Plan" which is a
compilation of both O&M and Capital budgets as well as operating targets. The business plans
for 2018, 2019, and2020 are attached. These are spreadsheet files. The list of capital projects for
the approved year is on the tab labeled "l0 yr Capital U34". The business plans for 2018, 2019,
ard2020 are attached.
Once approved, the primary oversight provided by the Owners is in review ofthe monthly "Budget
to Actual" reports and any discussion in the Owners Meetings.
2018 Proiects
The 2018 Business Plan file is attached (see tab "10 yr Capital U34") as well as the Hurdle Sheet
package prepared for the 201 8 budget.
PUC-DR-098 Confi.dential Attachment Al - Copy of Units 3-4 2018 Budget Version ll.xlsx
PUC-DR-098C Confidenttal Attachment A2 - 2018 U34 HR Worksheets.pdf
PUC-DR-098C Confidential Attachment A3 - 2018 U1-4 HR Worlaheets.pdf
Additionally, the monthly Budget to Actual Reports are included to illustrate how project costs are
tracked for monitoring and control purposes. The monthly re,ports are attached here. The
appropriate tabs are labeled *3&4 Capital Recap" and "U34 Capital Balance"
PUC-DR-l98C Confidential Attachment A4 - FINALOwners l2 18 Bud vs Act Un 3 4.xlsx
PUC-DR-}98C Confi.denttal Attachment A5 - 201801 Bud vs Act Un 3-4.xlsx
Through
Page 3 of5
PUC-DR-}98C Confidential Attachment Al4 - 201811 Bud vs Act Un 3_4.xlsx
PUC-DR-198C Confidential Attachment Al5 - 201812 Bud vs Act Un 3 4.xlsx
2019 Proiects
The 2019 Business Plan file is attached. As part of the budget process for 2019, decision was
made to defer the overhauls an additional year which required a change in the capital budget from
the original proposal. The revised capital budget that was approved for 2019 is also attached here.
Again, the capital portion is in the "10 yr Capital U34" tab. The 2019 Hurdle Sheet package is
also attached.
PUC-DR-098C Confidential Attachment Bl - Colstrip Units 3-4 2019 Proposed Budget
8.3l.I8.xlsx
PUC-DR-O98C Confidential Attachment 82 - U34 2019 Operating Budget revised
I l.13.I8.xlsx
PUC-DR-098C Confidential Attachment 83 - U34 2019 Hurdle Package - 2.a.I9.pdf
Additionally, the monthly Budget to Actual Reports are included to illustrate how project costs are
hacked for monitoring and control purposes. The monthly reports are attached here. The
appropriate tabs are labeled *3&,4 Capital Recap" and "U34 Capital Balance"
PUC-DR-098C Confidential Attachment 84 - Final_Revised 12-19 Budvs Act, Un 3-4.xlsx
PUC-DR-098C Confidential Attachment 85 - 201901 Budvs Act Un 3_4.xlsx
PUC-DR-098C Confidential Auachment 86 - 201902 Bud vs Act Un 3 4.xlsx
Through
PUC-DR-098C Confidential Auachment 816 - 201911 Bud Vs Act Un 3_4.xlsx
PUC-DR-098C Confidential Attachment Bl7 - 201912 Budvs Act Un 3 4.xlsx
2020 Proiects
The 2020 Business Plan file is attached. Again, the approved capital projects are on the "10 yr
Capital U34" tab. The 2020 Hurdle Package is also attached.
PUC-DR-l99C Confidential Attachment Cl - Colstrip U34 2020 Budget - Rev 4.xlsx
PUC-DR-098C Confidential Attachment C2 - 2020 Ui4 Hurdle Packnge.pdf
In addition, attached is an email from Avista providing budget approval with exceptions that
demonstrate how owners do monitor and attempt to manage those costs. A review of the acfual
approved budget will show that these adjustments were made to the final budget.
Avista's conditional approval of the proposed budget is attached.
PUC-DR-098C Confidential Attachment Ci - I91l1I Dempsey - Budget Approval.pdf
Talen's notification of budget approval is attached.
PUC-DR-09$C Confidential Attachment C4 - 191218 Dennehy - 2020 Budget
Approval.pdf
Page 4 of5
Additionally, the monthly Budget to Actual Reports are included to illustrate how project costs are
hacked for monitoring and contol purposes. The monthly reports are attached here. The
appropriate tabs are labeled *3&4 Capital Recap" and "U34 Capital Balance"
PUC-DR-098C Confidential Attachment C5 - 202001 Bud vs Act, Un 3-4.xlsx
PUC-DR-098C Confidential Attachrnent C6 - 202002 Budvs Act, Un 3-4.xlsx
PUC-DR-|98C Confidential Attachment C7 - 202003 Budvs Act, Un 3-4 Rev l.xlsx
Tlrough
PUC-DR-098C Confidential Attachment C15 - 202011 Budvs Act, Un 3-4.xlsx
PUC-DR-09\C Confidential Attachment C16 - 202012 Budvs Act, Un 3-4.xlsx
Page 5 of5
ruRISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
IDAHO DATE PREPARED: 0411212021
AW-E-21-01 / AW-G-21-01 WITNESS: Jason ThackstonIPUC RESPONDER: Steve Wenke
Production Request DEPARTMENT: GPSSStaff-099 TELEPHONE: [phone]
REQUEST: Please provide the following documentation for each Colstrip plant capital project
with a budget amount of $500,000 or more that was completed from 2018 through the current
date (where requested information has not been provided, please explain why it was not provided
and how the Company assured the construction of the project was completed at least cost):
a. Analysis of Need - a justification of need for each project along with a cost/benefit
analysis comparison of alternatives.
b. Project Plani. Project Plan.ii. Proposed budget.
iii. Proposed schedule.
c. Requests for proposals (RFP)
i. Project requirements.ii. Specifications.iii. Short list bidder scorecard.
iv. RFP from winning bid.
d. Project construction documentation including:i. Construction contract.ii. Organizational chart.iii. Scope document
iv. Work breakdown structure.
v. Baseline Schedule.
vi. Monthly project status report(s).
vii. Action iterrs list(s).
viii. Contractors change order request(s).
e. Company project completion analysisi. Lessons learned.ii. Budget-to-actual comparisons for overall project and by year.
iii. Baseline schedule-to-actual schedule comparison.
iv. For any actual costs differing from the budget amount by plus or minus 5
percent during a particular year please list and explain the reason(s) for the
budget arnount difference.
RESPONSE:
Please see Avista's response 099C, 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,Idaho Code.
As noted in eadier responses (see Staff PR_097 and 098), the plant does not follow the strict
process as implied with this question. Projects are managed and executed through a variety of
means and methods. Working with plant stafl we have assembled the information we do have to
support this response.
The $500,000 cost to Avista represents 15% of the total project cost. This request is applied to all
projects that exceed a total plant cost of $3,000,000.
($500k l15o/o: $3.33M: $3M rounded)
To determine which projects to pull information for, a series of spreadsheets was used to develop
a list of projects that totaled more than $3M over the 2018 to 2020 period of interest. The adopted
budgets identified as part of StaffPR 098 were used as the base. These budgets are attached here
for reference. (The DR-098 file name was retained so these can be cross referenced if desired.)
o PUC-DR-098C Confidential Attachment Al - Copy of Units 3-4 2018 Budget Version ll.xlsxo PUC-DR-098C Confidential Attachment 82 - U34 2019 Operating Budget revised
I l.I3.I8.xlsxo PUC-DR-}98C Confidential Attachment Cl - Colstrip U34 2020 Budget - Rev 4.xlsx
The three files were combined into a single spread sheet with each budget year having one tab.
Logic was applied to each tab and those projects that exceeded $3,000,000 were "red flagged" in
the far right columns of each spreadsheet.
PUC-DR-199C Confidential Attachment Al - 210331 CapEx Target List.xlsx
These items were transferred to yet another spreadsheet to create a single list of those project that
exceed $500,000 (Avista cost - $3,000,000 plant cost)
o PUC-DR-099C Confidential Attachment A2 - 210331 CapEx Target Projects.xlsx
Included as a monitoring and managernent tool for all of these projects are the monthly Budget to
Actual Reports. Rather than assigning each series of reports to individual projects, these reports
are attached here and can be used as reference back to the specific project. These reports have
been provided previously as part of the response to DR-098. By reference, these are:
PUC-DR-198C Confidential Attachment A5 - 201801 Bud vs Act Un 3-4.xlsx
through
PUC-DR-I9$C Confidential Attachment AI5 - 201812 Bud vs Act Un 3 4.xlsx
PUC-DR-l98C Confidential Auachment 85 - 201901 Bud vs Act Un i 4.xlsx
through
PUC-DR-098C Confidential Attachment BI7 - 201912 Budvs Act Un 3 4.xlsx
PUC-DR-l98C Confidential Attachment C5 - 202001 Bud vs Act, Un 3-4.xlsx
through
PUC-DR-198C Confidential Attachment Cl6 - 202012 Bud vs Act, Un 3-4.xlsx
The list of projects is identified below reflect those projects that meet the requested $500,000
threshold along with as many of the requested documents that could be located.
Unit 4 IP Turbine Overhaull. Analysis of Needo PUC-DR-099C Confidential Attachment CL- 2. 4571 U4 Aux Turbine Overhaul Rev
2.pdf
a
o
a
O
a
2. Project Plan:o PUC-DR-099C Confidential Attachment C2 -
PO.006491 80.AMEND.00l .COLSTRIP.U4.IP.Performance_Test.20I9.0l . I I .pdf
3. Project Plano PUC-DR-l99C Con/idential Attachment C3- Talen Montana LLC Colstrip 4 IP Stemens
Proposal RFP02-43 I 9 I 2 _1 2 _1 7c.pdf
4. Project Construction Documentationc PUC-DR-099C Confidential Attachment C4- EWA 619 - IP Install.pdfo PUC-DR-lggC Confidential Attachment C5- T-COLSTRIP.U4.IP.003.Install_Delay-
Storage. 2 0 I 8. I 0. I I .pdfo PUC-DR-}99C Confidential Attachment C6-
SCHEDULE. COLSTNP. U4. IP. 2 0 I 8. B. 0a.pdfo PUC-DR-099C Confidential Attachment C7- Talen_Contract 00648612_figned by
Siemens.pdf
5. Company Project Completion Reportso PUC-DR-199C Confi.dential Attachrnent C8- T-COLSTRIP.U4.IP.0 I l.Turbine-
Generator. Torsional. Model. 2 0 2 0. I 0. 06. pdf
Unit 4 Air Preheater Basket
1. Analysis ofNeedo PUC-DR-099C Confidential Attachment DI - 37. New 4574 U4 Air Preheater Basket
Replacement Rev l.pdf
2. Project Planc PUC-DR-099C Confi,dential Attachment D2 - Talen Energt-Colstrip Unit 4-APH
Inspection Report-09. 2 0. 2 0 2 0 Final-Reduced Stze P D F. PD F
3. Request for Proposalso PUC-DR-199C Confidential Attachrnent Di - HNAGAT.AFM.002555_D - Quote
Talen.pdfo PUC-DR-099C Confidential Attachment D4 - SSI air preheater baskets.docx
4. Project Construction Documentationo PUC-DR-lggC Confidential Attachment D5 - Talen Colstrip Unit 4 APH Punchlist.docxo PUC-DR-099C Confi.dential Attachment D6 - Unit 4 Hot End and Hot End Interm APH
Basket.doc
5. Company Project Completion Reports
Unit 3 Turbine/Generator Base Overhaul
This project involves a number of different system that collectively make up the T/G Overhaul.
This project will be executed during the202l Unit 3 Overhaul.
1. Analysis of Needo PUC-DR-099C Confidential Attachment El - 04.4571 A003 TurbGenerator Base
Overhaul.pdf
2. Project Plan
3. Request for Proposalso PUC-DR-L99C Confi,dential Attachment E2 - 210209 Siemens - Colstrip Valve Repair
Reqfor Appvl.pdfo PUC-DR-|99C Confi.dential Attachment E3 - OH-U3-Aux Turbine Support.docxo PUC-DR-099C Confi.dential Attachment E4 - OH-U3-Condenser Hotwell Scaffold
Support.docxo PUC-DR-|99C Confidential Attachment E5 - OH-U3-Turbine Insulation Support.docx
. PUC-DR-1??C Confi.dential Attachment E6 - OH-U3-Turbine Scaffild Support.docxo PUC-DR-I?9C Confidential Attachment E7 - Q-22024 Colstrip 3 Spring 21 Proposal R4
3.15.21.pdfo PUC-DR-199C ConJidential Attachment E8 - RNA20-20660 Colstrip 4 Yalve
Refurbi s hment 0 8 0 5 2 0. p df
4. Project Construction Documentationo PUC-DR-l99C Confidential Attachment E9 - Signed Alliance.pdfc PUC-DR-199C Confidential Attachment E|0 - 665161_Colstrip Contract_Valve Refurb
Executed.pdfo PUC-DR-}?9C Confidential Attachment El I - 70055930 T828824-I GV - Colstrip -
Recommend Report - EWR 5H2226-0I.pdfo PUC-DR-}?9C Confidenttal Attachment El2 - 70055932 TE37034 GV - Colstrip -
Recommend Report - EWR 5H2226-01.pdfo PUC-DR-|99C Confidential Attachrnent EL3 - 70055934 31523058 GV - Colstrip -
Recommend Report - EWR 5H2226-01.pdfo PUC-DR-099C Confidential Attachment E14 - 70055936 TE3Ii96 GV - Colstrip -
Recommend Report - EWR 5H2226-0I.pdfo PUC-DR-099C Confidential Attachment EIS - 70055938 31523059 GV - Colstrip -
Recommend Report - EWR 5H2226-0l.pdfo PUC-DR-199C Con/idential Attachment E16 - 70055940 T832097 GV - Colstrip -
Recommendation Report - EWR 5H2226-0l.pdfo PUC-DR-l99C Confidential Attachment El7 - 70055942 i1523060 GV - Colstrip -
Recommendation Report - EWR 5H2226-0l.pdfo PUC-DR-l99C Confidential Attachment El8 - 70055944 T829919 GV - Colstrip -
Recommendation Report - EWR 5H2226-0I.pdfo PUC-DR-19?C Confi.dential Attachment E19 - 70055946 T837488-7 W - Colstrip -
Recommendation Report - EWR 5H2226-0lpdfc PUC-DR-099C Confidential Attachment E20 - 70055948 T821765-1 TV - Colstrip -
Recommendation Report - EWR 5H2226-01.pdfc PUC-DR-099C Confidential Attachment E2l - 70055950 T837488-2 W - Colstrip -
Recommendation Report - EWR 5H2226-01.pdfc PUC-DR-|9?C Confidential Attachment 822 - 70055952 T823578-I W - Colstrip -
Recommendation Report - EWR 5H2226-01.pdfo PUC-DR-)99C ConJidential Attachment E23 - 70055954 TE21838-I IV - Colstip -
Recommendation Report - EWR 5H2226-0l.pdfo PUC-DR-099C Confidential Attachment E24 - 70055956 TE21838-2 IV - Colstrip -
Recommendation Report - EWR 5H2226-01.pdfo PUC-DR-)99C Confidential Attachment E25 - 70055958 TE2I839-I IY - Colstrip -
Recommendation Report - EWR 5H2226-0l.pdfo PUC-DR-099C Confidential Attachment 826 - 70055960 TE21839-2 IV - Colstrip -
Recommendation Report - EWR 5H2226-01.pdfo PUC-DR-099C Confidential Attachment E27 - Siemens EWR 5H2226-01, Colstrip
Valves-Actuators per PO665 I 6 I ( l).pdfo PUC-DR-099C Confidential Attachment 828 - Siemens EWR 5H2226-01, Colstrip
Yalves-Actuators per PO665 I 6 l.pdf
5. Company Project Completion Reports
Unit 4 Turbine/Generator Base Overhaul
This project involves a number of different systems that collectively make up the T/G Overhaul.
This project was completed in 2020.
1. Analysis of Needo PUC-DR-199C Confi.dential Attachment Fl - 07. 4571 U4 Turbine.Generator Base
Overhaul Rev 2.pdf
2. Project Plan
3. Request for Proposalso PUC-DR-1??C Confidential Attachment F2 - RNA2019-21766 Colstrip 4 2020 Major
Inspection 12.6.pdfo PUC-DR-19?C Confidential Attachment F3 - RNA2019-26135 Colstrip 4 Factory Valve
Service.pdf
4. Project Construction Documentationo PUC-DR-199C Confidential Attachment F4 - EWA 605 Colstrip 2020 MW Rate
Increase.pdfc PUC-DR-099C Confidential Attachment F5 - EWA 608-613-630-632-637 - U4 TG
Base.pdfc PUC-DR-|99C Confidential Attachment F6 - EWA Start-Up.pdfc PUC-DR-|99C Confidential Attachment F7 - OH-U4-Turbine Insulation Support.docxo PUC-DR-}99C Confidential Attachment F8 - OH-U4-Turbine Scaffold Support.docxo PUC-DR-|99C Confidential Attachment F9 - Siemens EWR 5H2120-01, rev 01, for
Colstrip Valves - Actuators per PO654206.pdf
5. Company Project Completion Reportso PUC-DR-|99C Confidential Attachment Fl0 - Siemens CLT Repair Report - Talen
Colstrip 4 - Valve and Actuator Refurb per Contract 654206.pdf
Unit 4 Colling Tower Fill
This project is targeted to replace key structural members of the cooling tower that had been
identified as critical in need of replacement. This project also replaced much of the cooling media
which had deteriorated.
1. Analysis ofNeedo PUC-DR-?99C Confidential Attachment Gl - 53. 4572_U4_Cooling Tower Fill
Replacement.pdf
2. Project Plano PUC-DR-199C Confi.dential Attachment G2 - 4DA-CIRCUI-ATING WATER SYSTEM -
TESTS-STUDIES-REPORTS - SPX COOLING TECHNOLOGIES MECH EQUIPMENT
INSPECTION REPORT (U4 COOLING rowrE$.pdfo PUC-DR-}??C Confidential Attachment G3 - Amertech Refrences.pdfo PUC-DR-099C Confidential Attachment G4 - Quotation Comparison.xlsxo PUC-DR-199C Confidential Attachment G5 -436652 Proposal Rev. 3C Spring 2020 U4
Cooling Tower.pdf
3. Request for Proposalso PUC-DR-1?9C Confidential Attachment G6 - Midland West Cooling Beams.pdfo PUC-DR-199C Confidential Attachment G7 - NAES Cooling Tower Beams.pdfo PUC-DR-0??C Confidential Attachment G8 -Talen Energt Repair proposal09-25-19
Rev l.pdfo PUC-DR-I??C Confidential Attachment G9 -True North Steel Cooling Tower Beams.pdf
4. Project Construction Documentation
. PUC-DR-199C Confidential Attachment GI0 - Colstrip Monthly Project Report - May
2020.pdfo PUC-DR-0?9C Confidential Attachment GI I - Colstrip Monthly Project Report - June
2020.pdf
o PUC-DR-099C Confidential Attachment GI2 - Colstrip Monthly Project Report - July
2020.pdfo PUC-DR-099C Confidential Attachment Gl3 - Colstrip Monthly Project Report - August
2020.pdfo PUC-DR-099C Confidential Attachment GI4 - Colstrip Monthly Project Report -
September 2020.pdfo PUC-DR-|99C Confidential Attachment Gl5 -Talen Energt Additional Stainless
beams.pdfo PUC-DR-099C Confidential Attachment Gl6 -Talen Energt Cooltng Tower Beams.pdf
5. Company Project Completion Reportso PUC-DR-099C Confi.dential Attachment Gl7 - 4DA-CIRCULATING WATER SYSTEM -
TESTS-STUDIES-REPO RTS - STRUCTURAL TECHNOLOGIES COOLING TOWER
BEAM REPI-ACEMENT MAP (FINAL) -.pdfo PUC-DR-I9?C Confidential Attachment G18 - 4DA-CIRCUI^ATING WATER SYSTEM -
TE STS-STUDIE S-REPORTS - STRUCTURAL TECHNOLOGIES COOUNG TOWER
FILL REPI-ACEMENT MAP (FINAL) -.pdfo PUC-DR-}?9C Confidential Attachment Gl9 - 4DA-CIRCUI-ATING WATER SYSTEM -
TE STS-STUDIES-REPORTS - STRUCTURAL TECHNOLOGIES COOLING TOWE R
PRIORITY SHORING PLIIN (FINAL) -.pdfo PUC-DR-|99C ConJidential Attachment G20 - 4DA-CIRCUI-{TING WATER SYSTEM -
TESTS-STUDIES-REPO RTS - STRUCTURAL TECTINOLOGIES TOWER DRIFT
ELIMINATOR REPLACEMENT MAP (FINAL) -.pdfc PUC-DR-099C Confidential Attachment G2I - Colstrip U4 CT Project Completion
Report.pdf
Unit 3 Colling Tower Fill
ffis project is targeted to replace key structural members of the cooling tower that had been
identified as critical in need of replacement. This project also replaced much of the cooling media
which had deteriorated. This work will be performed as part of the 2021 overhaul planned for
April through June
l. Analysis ofNeedo PUC-DR-099C Confidential Attachment HI - i6.4572_A003_Cooling Tower Fill.pdf
2. Project Plano PUC-DR-099C Confidential Attachment H2 - 59i962 Schedule 2020-I l-17.pdf
3. Request for Proposalso PUC-DR-099C Confidential Attachment H3 - 9907 - FILL MEDUo PUC-DR-099C Confidential Attachment H4 - 301238 MT Talen Colstrip.pdfc PUC-DR-|99C Confi,dential Attachment H5 - 593962 Proposal R}p30a89J.pdfc PUC-DR-|99C Confidential Attachment H6 - Cooling Tower Beam SSJ.docxo PUC-DR-|99C Confidential Attachment H7 - Cooling Tower Structure SSJ.docxo PUC-DR-099C Confidential Attachment H8 - Copy of Unit 3 Cooling Tower Fill Parts
Bid Tabulation FINAL.xlsx
. PUC-DR-|?9C Confidential Attachment H9 - ESL Quote ui cooltng tower 1214208H01
REV2.pdfo PUC-DR-lggC Confidential Anachment H10 - Talen - Fill DF254, DE TU|2C, Nozzles -
2I-01t ITAL.pdf
o PUC-DR-I9?C Confidential Attachment HI I - Talen Energt Cooling Tower Stainless
Beams.pdf
o PUC-DR-09?C Confidential Attachment H12 - Talen Montana-MT-P-21001.pdf
o PUC-DR-099C Confidential Attachment Hl3 - Talon-Energt-P8600.pdf
4. Project Construction Documentation
o Project is not under construction at this time. Planned April to June 2021
5. Company Project Completion Reportso Project is not under construction at this ttme. Planned Aprtl to June 2021
Environmental Proj ects
The environmental projects follow a more traditional project approach of preliminary design,
project proposals, final design and specifications, bidding, and award of construction contracts.
There are ten projects identified that meet the $3,000,000 plant cost threshold. Collectively, these
projects occupy 47 folders and currently contain 593 files. It is viewed that providing all of these
documents here would create more information than what could reasonably be reviewed.
lnstead, we are attaching to this request, a representative number of files associated with a specific
project intended to assure that a process is followed that helps assure that the best value and lowest
evaluated cost is achieved on the projects.
The project used for illustrating the documentation is for the construction of the Brine Concentrator
and Crystallizer system designed to reduce water storage on the site.l. Analysis of Needo PUC-DR-}?9C Confidential Attachment Il - 108062-08206-PR-REP-0001 Integrated
Water Management Study Report.pdf
2. Project Plan
3. Request for Proposalso PUC-DR-1?9C Confidential Anachment 12 - 308062-14308-ME-SPC-0001 Mechanical
C ons truc ti o n Sp e cifi c a ti on. p dfo PUC-DR-09?C Confi.dential Attachment 13 - 308062-14308-CI-SPC-0002 Foundation
Specification.pdfo PUC-DR-I9?C Confidential Attachment 14 - 308062-14i08-CI-SOW-0001 RFP
Ge o t e chni c a I Inv es ti ga ti on. p dfo PUC-DR-099C Confi.dential Attachment 15 - 108062-08206-PR-TBE-0002 Brine Conc -
Crystallizer Proposal Evaluation.pdfo PUC-DR-|99C Confi.dential Attachment 16 - 108062-08206-PR-SPC-0002 Performance
Spec - Brine Concentrator-Crystallizer.pdfo PUC-DR-099C Confidential Attachment 17 - 308062-14308-PS-BAS-0002 Brine
REcovery System Bid Analysis Summary.pdf
4. Project Construction Documentationo PUC-DR-099C Confidential Attachment 18 - Brine Recover System Detqil Engineering
Proposal Update Rev 0.pdfo PUC-DR-0??C Confi.dential Attachment 19 - 646596 amd I Signed Support Engineering
Contract.pdfo PUC-DR-09?C Confidential Attachment Il0 - Budget Cost Tracking 4-16-l9.xlsx
5. Company Project Completion Reports
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
ruRISDICTION: IDAHO DATE PREPARED: 0411212021
CASE NO: AVU-E-21-01 / AW-G-21-01 WITNESS: Jason Thackston
REQUESTER: IPUC RESPONDER: Steve WenkeTYPE: Production Request DEPARTMENT: GPSS
REQUEST NO.: Stafll00 TELEPHONE: [phone]
REQUEST: Please list every Colstrip capital project with a budget of $250,000 or above
completed since 2018, which was completed using internal resources (internal defined as any
ownership partner) instead of an outside contractor. For each of these projects, please explain
why intemal resources were used instead of an outside contractor.
RESPONSE:
Please see Avista's response 100C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL information and exempt from publicview and is separately filedunder IDAPA
31.01.01, Rule 067 and233, and Section 9-340D, Idaho Code.
Colstrip utilizes internal staff and engineers to address project concems. These sources are used
in a project management role to set up contracts and follow work during overhaul, construction,
and installation.
Colstrip relies on contractors and specialty conhactors to perform most of the project work
associated with the investment plant (Capital Budget plan). Major planned work usually requires
crews that exceed the capacity of intemal resources. Internal resources are used for some non-
critical path projects where they can be fit in, as they typically are available at a lower cost than
contractors. However, internal resources need to be applied flexibly in order to respond to
routine maintenance of the operating unit.
In a similar exercise used for the response to Staff PR_099, a compiled file of those budget
items for target years 2018 through 2020. This is referenced here:
Staff_PR_099C Confidential Attachment AI - 210331 CapEx Target List.xlsxa
This list was consolidated and sorted to identifu all of those project that are $250,000 (Avista
Cost : $250k / l5o/o = $1.6M - rounded to $1.5M). The list of the projects that equal or exceed
$1,500,000 are identified. That complied list is attached here:
Staff_PR_L00C Confidential Attachment Al - 210408 CapEx Target Projects-
$l500k.xlsx
a
None of the projects on this list of projects were performed by internal resources.
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATTON
IDAHO DATE PREPARED: 0411512021
AW-E-21-01 / AW-G-21-01 WITNESS: J. Thackston/I(. SchultzIPUC RESPONDER: Justin Baldwin-Bonney
Production Request DEPARTMENT: Regulatory AffairsStafllOl TELEPHONE: [phone]
RBQUEST:
Please provide the following documentation for each electic seneration capital project (except for
Colstrip) with a budget amount of $1,000,000 or more that was completed from 2018r through the
current date (where requested information has not been provided, please explain why it was not
provided and how the Company assured the construction of the project was completed at least
cost):
a. Analysis of Need - a justification of need for each project along with a cost/benefit
analysis comparison of alternatives.
b. Project Plani. Initial project scope.ii. Proposed budget.iii. Proposed schedule.
c. Requests for proposals (RFP)
i. Project requirements.ii. Specifications.iii. Short list bidder scorecard.
iv. RFP from winningbid.
d. Project construction documentation including:i. Construction conhact.ii. Organizational chart.
iii. Scope document.
iv. Work breakdown structure.
v. Baseline Schedule.
vi. Monthly project status report(s).
vii. Action items list(s).
viii. Contractors change order request(s).
e. Company project completion analysis
i. Lessons learned.
ii. Budget-to-actual comparisons for overall project and by year.
iii. Baseline schedule-to-actual schedule comparison.
iv. For any actual costs differing from the budget amount by plus or minus 5 percent
during a particular year please list and explain the reason(s) for the budget
amount difference.
I Per further discussion with Staff, it was noted that only projects placed in service since 2019 were wifhin scope of
this request.
RESPONSE:
Please see Avista's response to Staff PR_l0lC, which contains TRADE SECRET,
PROPRIETARY or CONFIDENTIAL information and exempt from public view and are
separately filed under IDAPA 31.01.01, Rule 067 and,233, and Section 9-340D,Idaho Code.
Elecfic generation expenditure requests (ERs) with total annual transfers to plant of $1,000,000 or
more, on an Idaho allocated basis, for 2019 through February 2021 include three major endeavors
at two locations: Little Falls (LF) Powerhouse Redevelopment (ER_4152), and the Automation
Replacement (ER_4163) and Gantry Crane Replacement (ER_4178) at Cabinet Gorge. For each
of the identified projects, please refer below for associated documentation. In addition to the
specific project information being provided below, please see Staff-PR-096 for an overview of the
Company's methodology for planning, monitoring and completing capital projects.
ER_4152 - Little Falls Powerhouse Redevelopment: During the period in question, the program
finalized the modernization of Unit ll4 as well as some incidental 4.16Kv bus work for a plant
tripping issue. As the total bus project amounted to less than $20,000, documents related to this
specific project are not included in the response. The information provided below is related
primarily to the modemization of Unit #4.
a) Analysis ofNeed:
Refer to the provided Project Initiation Charter document Sta{_PR_101 Attachment
A. This Charter document provides the justification for the need to complete the
upgrade of the last of four total generating units at the Little Falls HED. Please see the
Business Case Justification Narrative (BCJN) for Little Falls Powerhouse
Redevelopment in Company witness Mr. Thackston's Testimony, Exhibit No. 7,
Schedule 4 for a full description of the need for this work as well as any alternatives
considered.
b) Project Plan:
Refer to the provided Project Execution Plan (PEP) document Sta[PR_101
Attachment B, in addition to Staff PR_101 Attachment A. This PEP along with the
Project Charter includes the following information per the request.i. Project scope:
Sta[PR_t0l Attachment B - Scope Baseline & Scope Management Plan, and
StaflPR_l01 Attachment Aii. Proposedbudget:
StaffAttachment B - Cost Baseline & Cost Management Plan, and Sta[PR_l0l
Attachment Aiii. Proposed schedule Staff PR_101 Attachment B - Schedule Baseline &
Management Plan, and Staff_PR_lOl Attachment A
c) Requests for proposals (RFP):
There were no RFP's completed for Little Falls Unit 4 as this was constructed using
internal Avista crew resources and this was the last of four units to be upgraded.
d) Project construction documentation including:i. Construction contract:
Refer to the provided Sta[PR_l01C Confidential Attachment C that provides
the list of contracts for professional services, suppliers, vendors, and fabricators.ii. Organizational chart:
Refer to the provided Sta[PR_l0lC Confidential Attachment C that provides
the organization chart and the hierarchy description.iii. Scope document:
Refer to both of the provided Staff_PR_l0l Attachment B - Scope Baseline &
Scope Managonent Plan, and Staff PR_101 Attachment A documents for
details on the project scope.
iv. Work breakdown structure:
Refer to the provided Sta[PR_l01 Attachment D that provides a detailed work
breakdown of the project work.v. Baseline Schedule:
Refer to the provided Sta[PR_lOl Attachment D for schedule baseline.vi. Monthly project status report(s):
Refer to the provided Staff PR_101 Attachment E for monthly reports from
May 2018 thru August20l9.
vii. Action iterns list(s):
Refer to the provided Sta[PR_l0lC Confidential Attachment C that provides
more information on this item.
viii. Contractors change order request(s):
Refer to the provided Sta[PR_lOlC Confidential Attachment C that provides
the list of change orders for professional services, suppliers, vendors, and
fabricators that are due to unforeseen conditions and additional work required on
the equipment.
e) Company project completion analysisi. Closeout of this project was completed in 2020 due to funding and resource
constraints. Lessons learned analysis for this project was not completed.
ii. Budget-to-actual comparisons for overall project and by year:
Upon initiation of the LF Unit 4 project in the Charter, the project was estimated
at $7.8 million based upon historical costs from previous upgrades. With
continued analysis of current and forecasted costs for labor, equipment and
materials, completion of the project schedule, and evaluation of the extent of the
upgrades necessary for some equipment, the updated costs were captured in the
Project Execution Plan for $8.2 million. Due to the wicket gate delay, costs for
additional work, necessary fabrication, rqrair, and resurfacing of various parts
and pieces, higher than anticipated overhead charges and additional labor time,
the project came in at $9.4 million. The total of $9.4 million included all of the
program closeouts, plant as-builts, and final panel rernovals and finish work that
was ultimately completed in 2020.iii. Baseline schedule-to-actual schedule comparison:
Refer to the provided Sta[PR_l0l Attachment F for the Project Completion
Analysis that provides more information on this itern.iv. For any actual costs differing from the budget amount by plus or minus 5 percent
during a particular year please list and explain the reason(s) for the budget amount
difflerence:
The budget amounts per year were in alignment with the actual amounts for
2018 and 2019. Funding and resource constraints were experienced due to the
delay with the critical materials extending the project duration and ultimately the
project costs, in addition to holding those labor and engineering resources with
this project further into 2019 than planned. Needing those labor and engineering
resources on other already scheduled projects, along with the project costs
nearing the yearly spend, the balance of the work was pushed into 2020 which
included some of the final project and program closeout, plant as-builts, and
other panel removal work that was ultimately completed in 2020, but not
initially budgeted for in 2020.
ER_4163 - Cabinet Gorge HED Automation Replacement: The project was for the replacing of
the excitation system, governor systern, and unit controls.
a. Analysis ofNeed
Please see the Business Case Justification Narrative (BCJN) for Cabinet Gorge
Automation Replacement in Company witness Mr. Thackston's Testimony,
Exhibit No. 7, Schedule 4 for documentation on how this project was designed to
quickly change output in response to the variability ofwind generation, to adjust to
changing customer loads, and other regulating services needed to balance the
system load requirernents and assure transmission reliability. Refer to
Sta[PR_l0l Attachment G for altemative options investigated.
b. Project Plan
There are multiple documents related to the project plan. Refer to the provided
Project Initiation Charter as Staff_PR_lOl Attachment J for proposed scope and
budget, with additional information provided in Sta[PR_101 Attachment H,
StaflPR_l0l Attachment I, and Stafl PR_101 Attachment K.
c. Requests for proposals (RFP)
This project did not go out to bid. Work performed was done by Avista's union
workforce. Hence, there is no information to provide for RFP, bidders, etc.
d. Project construction documentation including:
Documentation maintained for the construction project include Sta[PR_101
Attachment I for the management of the scope of the project, Sta[PR_101
Attachment H for schedule, and Staff PR_l0l Attachment L for the monthly
project reports.
e. Company project completion analysis
Final documentation on project completion include Sta[PR_101C Confidential
Attachment M for the final project report, and Staft_PR_l0l Attachment N for the
Lesson's Learned.
ER_4178 - Cabinet Gorge IIED Gantry Crane Replacement: The goal of this project was to
provide Cabinet Gorge HED with a safe and reliable crane system on top of the powerhouse,
adequate for all foreseeable lifting needs including, but not limited to, lifting the Unit I generator,
generator step-up transformers and tailgate bulkfieads. It is further noted that a post project
adjustment was made in 2020 and is discussed in Company witness Ms. Schultz's testimony as
referenced in Section III Summary of Capital Adjusfrnents, Rate Year l, Adjustment (1.04) -
Restate 2019 AMA Rate Base to EOP.
a. Analysis of Need
Please see the Business Case Justification Narrative (BCJN) for the Cabinet Gorge
Gantry Crane Replacement in Company witness Mr. Thackston's Testimony,
Exhibit No. 7, Schedule 4 for a full description of the need for this work as well as
any altematives considered.
b. Project Plan
There are multiple documents related to the project plan. Refer to the provided
Project Charter as Sta[PR_101 - Attachment O for proposed scope and budget,
with additional information provided in Staff PR_101 Attachment P for
documentation ofmeeting to determine specific requiranents and Sta[PR_101 -
Attachment Q for schedule.
c. Requests for proposals (RFP)
This project did not go out to bid. Refer to Staff_PR_l0lc Confidential
Attachment R for the justification and approval of using a trusted vendor to perform
the work without seeking other bids.
d. Project construction documentation:
Refer to Sta[PR_l0l - Attachment Q for schedule, Sta[PR_l01 Attachment S
for Project Status reports. In addition, StaLPR_I01C Confidential Attachment
T.1 is the fully executed Work Authorization agreement for the engineering and
construction of the gantry crane. There was a total of six change orders through the
consfiuction period, Confidential AttachmerrtT.2 - Confidential AttachmerfiT.T,
detailing changes required and adjusfrnents to the schedule.
e. Company project completion analysis
Refer to Staff PR_101C Confidential Attachment U for Final Project Report,
which includes lessons learned and the final budget per year. Each adjusfinent in
expected spend and timing is noted. It should be noted again that a post project
adjusfrnent was made, as discussed in Company witness Ms. Schultz's testimony.
JURISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATION
IDAHO DATE PREPARED: 04/1212021
AVU-E-21-01 / AW-G-21-01 WITNESS: Jason Thackston
IPUC RESPONDER: Mike Mecham
Production Request DEPARTMENT: GPSSStafll02 TELEPHONE: [phone]
REQUEST:
Please provide all Company documentation that supports that the Coyote Springs 2 Single Phase
Transformer project was the least cost solution. Please include the Company's analysis, consultant
studies, rqtorts, meeting notes, and communication used to support the selection.
RESPONSE:
For purposes of this response the least cost solution means the solution that provided the best value
to customers (i.e., the highest Customer Internal Rate of Return (CIRR)).
There are multiple documents attached to this response that are similar. They are attached to show
the update progression as detailed information concerning the Single Phase Transformer project
evolved. The last two documents, "Thomas Dempsey Financial Analysis note to file 511312020"
and "Business Case Justification Narrative 2020 Format" are the two documents with the most
current information.
Staff PR 102 Attachment A - Business case 2019 Adobe portfolio:
o 20190731 Decision Tree Na:rative- decision tree and explanation of the path leading to
this point.o 20190919 CS2 GSU Single Phase Transformer Business Case- Avista standard Business
Case templateo 20190919 Power Supply Asset Management Consolidated Financial Analysis summary of
workpedormed by James Gall, JeffSmith, and T'homas Dempsey. Appendix II CS2 GSU engineering recommendation - engineering reportfrom David
Nicholso Avista-CoyoteSpgs-GSU-Replcmt-Concept-Report_Final_Rpt-w-ATT revo CS2_Transformer_Analysis_080719o Xfrnr Rev Req5
Staff PR_102 Attachment B - CS2 GSU Single Phase Transformer Business Case and
Appendices (updated):
20191223 CS2 GSU Single Phase Transformer Business Case- Avista standard Business
Case template
Appendix I Power Supply Asset Management Consolidated Financial Analysis- summary
of workpedormed by James Gall, JeffSmith, and Thomas Dempsey
Appendix II CS2 GSU engineering recomme,ndation- engineering reportfrom David
Nichols
a
a
a
Appendix III Avista-CoyoteSpgs-GSU-Replcmt-Concept-Report_Final_Rpt-w-ATT rev-
Black & Yeatch engine*ing sttdy
Appendix I\l 20191223 Decision Tree Narrative decision tree and wplanation of the path
leading to this patnt,
StaLPR_1O2 Attaehment C - Thomas Dempsey Financial Analysis note to frle 5/13/2020:
Staff_PR_l02 Auachment D - Business Case Jrutification Narative_2020 Format - Thomas
Dempsey and IGra Heatherly input
a
o
ruRISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATTON
IDAHO DATE PREPARED: 0411412021
AVU-E-21-01 / AVU-G-21-01 WITNESS: H. RosentraterA(. SchultzIPUC RESPONDER: Tia Benjamin
Production Request DEPARTMENT: Regulatory AffairsStaffi103 TELEPHONE: (509) 49s-2225
REQUEST:
Please provide the following documentation for each transmission and distibution capital
project with a budget amount of $1,000,000 or more that was completed from 2018 through the
current date (where requested information has not bee,n provided, please explain why it was not
provided and how the Company assured the consffuction of the project was completed at least
cost):
a. Analysis of Need - a justification of need for each project along with a cost/benefit
analysis comparison of alternatives.
b. Project Plani. Initial project scope.ii. Proposedbudget.
iii. Proposedschedule.
c. Requests for proposals (RFP)
i. Project requirements.ii. Specifications.iii. Short list bidder scorecard.
iv. RFP from winningbid.
d. Project construction documentation including:i. Construction conffact.ii. Organizational chart.iii. Scope document.
iv. Work breakdown structure.
v. Baseline Schedule.
vi. Monthly project status report(s).
vii. Action items list(s).
viii. Contractors change order request(s).
e. Company project completion analysisi. Lessons learned.ii. Budget-to-actual comparisons for overall project and by year.
iii. Baseline schedule-to-actual schedule comparison.
iv. For any actual costs differing from the budget amount by plus or minus 5 percent
dtring a particular year please list and explain the reason(s) for the budget
amount difference.
RESPONSE:
Please see Avista's response 103C, 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,Idaho Code.
For each of the projects listed below, due to the large volume of documentation being provided, a
zip file is attached. This file contains a folder for each project with aflachments identified below
and is titled with the Expenditure Request (ER) for easy correlation to the related response below.
For an overview of the Company's methodology for planning, monitoring and completing capital
projects please see Staf[-PR-096 in addition to the specific project information being provided
below.
ER_2051 - Electric Transmission Plant-Storm and
ER_2059 - Failed Electric Dist Plant-Storm
a. The work done under the Electric Storm business case is related to restoration of Avista's
electric assets into serviceable condition during a weather storm event or other natural
disaster. Please see the Business Case Justification Narrative (BCJN) for Electric Storms
in Company witness Ms. Rosentrater's Testimony, Exhibit No. 11, Schedule 9 for more
information regarding the scope and purpose of the work. Within the provided zip file,
please see the folder ER_2051 Electric Storm Attachments for all additional attachments in
this response.
b. The Electric Storm business case contains unplanned and dernand driven work, comprised
of several projects, not individually budgeted. Historical trends, excluding the cost of
major events, are used to estimate the annual budget needs for the business case overall.
c. Typically, no RFP's are performed for this work, due to the need for immediate response
available Avista and contracted dock crews are utilized. During the 2018-present time
period there is one exception, in response to the Cold Springs Fire during the summer of
2020, the transmission work on the Chelan-Stratford line required putting out an RFP due
to the large volume of work which needed completed. Please see Staf[-PR-103 Attachment
205lA-F, some of which are confidential, for RFP and contract related documentation.
d. This work is of a responsive and unplanned nature returning failed plant to service,
restoring customer outages as quickly as possible due to storm or natural disaster
situations. The BCJN, has a description in section 1.4 of how the team monitors and
measures success for making these investments followed by additional supplernental
information in 1.5 and beyond that will be helpful in understanding the monitors and
metrics used in making decisions around funding and guiding decisions on this capital
work.
e. Regarding project completion analysis, mid and post storm operations calls occur which
may include the discussion of lessons learned and assignment of resources related to the
operational response. This budget is monitored and discussed during a regularly scheduled
monthly meeting with the Electric Operations Director. Annual budget to actual results
shown here:
ER 2059
Dlstributlon
Storm 2018 2019 2020 2021 Feb YTD
Total Company
tdaho
t,664,O76
27t
2,s00,013 2,206,82L 1,985,449 6,694,275 352,960 5,565,496
Budgetw Actual Bud ActualActual Actual
ER 2051
Transmlssion
Storm 2018 20L9 2020 2021 Feb YTD
L,gLO,607Total Company
ldaho
1,0@,002
0
500,002 4,LO2,379 7,038,547 202,65t
Budgetg BudgetgActualActualActual Actua I
This work is performed as readily as possible when a weather or fire event has
occurred. Replacing damaged facilities is vital to providing reliable service to our
customers. The Electric Storm business case is to fund a rapid response to
unexpected damages. The primary measure that is used to determine success is
outage duration including reliability indices like SAFI and CAIDI.
The program encompasses our entire service territory and consists ofmany projects
which are not individually budgeted or measured for variance. An exception is the
Chelan-Stratford Cold Springs Fire restoration in 2020. Although not budgeted, the
circumstance allowed for the setting up of a specific project number, defining a
scope of work, schedule, and using the RFP process documents as presented in (c)
above. Initially the estimate was $8.6M. As costs are finalizing the actuals to date
are closer to $4.5M, related to reduced overtime labor than originally estimated.
ER_2055 - Electric Distribution Minor Blanket
a. Please see the BCJN for Distribution Minor Rebuilds in Company witness Ms.
Rosentrater's Testimony, Exhibit No. 11, Schedule 9 for a full description of the need for
this work as well as any alternatives considered.
a. The work done under Distribution Minor Rebuild is driven by keeping the distribution
system in safe and reliable condition for customers and workers, responding to unplanned
damage to distribution assets not related to weather events, as well as small customer
driven rebuilds. Throughout the entire distribution system, minor rebuilds, or replacement
of asset units need to be completed to maintain system reliability and safety. Projects are
typically small and unplanned for this ongoing progftrm.
b. Distribution Minor Rebuild work is performed by in house crews, as such RFP's are not
performed for this type of work.
c. This work is of an ongoing nature addressing small unplanned work that is not considered
maintenance. The BCJN, has a helpful description in section 1.4 of how the team monitors
and measures success for making these investments.
d. Project Completion Analysisi. Due to the nature of this business case where projects are typically small and
unplanned for this ongoing program, a lessons learned is not conducted for
individual projects.
ii. Job estimates for the projects funded by this program are not hacked on an
individual basis as projects are typically small and unplanned. This budget is
monitored and discussed during a regularly scheduled monthly meeting with the
Electric Operations Director. Actual yearly program costs are shown below.
2018 2019 2020
5 LO,678,779 S L3,4LL,478 s 13,080,967
Electric Distribution Minor Rebuild Actuals
- (Total Company)
111.The Distribution Minor Rebuild addresses small scale projects (service orders/
jobs) in a response as a program which does not have a completion date.
Furthermore, due to the unplanned nature of most jobs funded by this program,
there are not baseline to actual schedules to compare.
lv Because this business case addresses jobs and repairs on our distribution system
that are typically small and unplanned, an annual budget is set each year however it
is frequently increased throughout the year when the need occurs. Historical spend
is used to assist with determining the annual budgeted amount however is typically
set lower than historical spend. Costs for unplanned minor rebuild work have
increased over the years due to assets on the distribution system are past their end
of life cycle and contributing to this increase. Throughout the entire distribution
system, minor rebuilds, or replacement of asset units need to be completed to
maintain system reliability and safety. This budget is monitored and discussed
during a regularly scheduled monthly meeting with the Director.
ER_2056 - Distribution Line Relocations
a. The work done under Distribution Line Relocations is related to Mandatory &
Compliance. Franchise agreements, typical state highway and railroad permits, and DOT
prescribe that the utility will relocate at their expense when in conflict with entity activities.
Please see the BCJN for Distribution Line Relocations in Company witness Ms.
Rosentrater's Testimony, Exhibit No. 11, Schedule 9 for more information regarding the
scope and purpose of the work.
b. The Elecfric Relocations business case contains unplanned and demand driven work,
comprised of several projects, not individually budgeted. Historical trends are used to
estimate the annual budget needs for the business case overall.
c. There have been no RFP's for this work during the 2018-presort time period.
d. This work is of an ongoing nature addressing the needs of local city and state entities
through franchise agreements on a mandatory basis. The BCJN, has a description in
section 1.4 of how the team monitors and measures success for making these investments
followed by additional supplemental information in 1.5 and beyond that will be helpful in
understanding the monitors and metrics used in making decisions around funding and
guiding decisions on this capital work.
e. Project Completion Analysisi. Due to the nature of this business case where projects are many and unplanned, a
formal 'lessons learned' is not conducted for the overall ongoing program.
This budget is monitored and discussed during a regularly scheduled monthly
meeting with the Electric Operations Director. Annual budget to actual results
shown here:
1l
2018 20L9 2020 2021 Feb YTD
2,217,060 4,87L,826Total Company
ldaho
3,500,015 2,520,O20
72L
3,246,503
769
2,470,O18 295,550
47
600,394
Actual Actual Actual Actual
This work is performed in coordination with the schedules defined by the
franchising agencies.
The program encompasses our entire service territory and consists ofmany projects
which are not individually budgeted or measured for variance. Project designers
generally create estimates for specific work via workorders. For example,in2020,
for our Coeur d'Alene, Idaho office, twelve specific road relocation workorders
were closed, four of which had actuals greater than $100k. For work of this
magnitude, a workorder estimate to actual summary is available for the designer's
review when the workorder has been closed.
ER_2057 - Transmission Minor Rebuild
a. Please see the BCJN for Transmission Minor Rebuilds in Company witness Ms.
Rosentrater's Testimony, Exhibit No. I l, Schedule 9 for a full description of the need for
this work.
b. The work done under Transmission Minor Rebuild is driven by maintaining compliance
with North American Electric Reliability Corporation (NERC) reliability standards. This
business case covers corrective work to remedy system performance deficiencies found
during annual inspection. Throughout the entire fransmission system, minor rebuilds, or
replacement of asset units need to be completed to maintain system reliability and safety in
accordance with NERC standards.
c. Transmission Minor Rebuild work is performed by in house crews, as such RFP's are not
performed for this type of work.
d. This work is of an ongoing nature annually addressing deficiencies of assets on our
transmission system through the completion of many smaller project. Stafl-PR-l03
Attachments 2057D1-2057D3 present a schedule of this work for the period of 2018
through the first half of 2021. Additionally, the BCJN, has a helpful description in section
1.4 of how the team monitors and measures success for making these investments.
e. Project Completion Analysisi. Due to the nature of this business case where projects are typically small and
unplanned for this ongoing program, a lessons learned is not conducted for
individual projects.
Job estimates for the projects funded by this program are not tracked on an
individual basis as projects are typically small and unplanned. This budget is
monitored via a monthly Expected Spend reconciliation process. See attached
Staff-PR-l03 Attachments 205781-205783 for 2018, 2019, and 2020
Transmission Expected Spend spreadsheets. Actual yearly program costs are
shown below.
111.
iv.
u
2018 2019 2020
5 2,593,420 5 2,259,L2O 5 2,4O9,L20
Electric Transmission Minor Rebuild Actuals
- (Total Company)
llt.The Transmission Minor Rebuild addresses small scale projects in a response as a
program which does not have a completion date. Furthermore, due to the
unplanned nature of most jobs funded by this program, there are not baseline to
actual schedules to compare.
tv Because this business case addresses jobs and repairs on our transmission systan
that are typically small and unplanned, an annual budget is set each year, however it
is frequently increased throughout the year when the need occurs. Historical spend
is used to assist with determining the annual budgeted amount however it is
typically set lower than historical spend. Costs for unplanned minor rebuild work
have increased over the years due to assets on the transmission system are past their
end of life cycle and contributing to this increase. Throughout the entire
transmission syston, minor rebuilds, or replacernent of asset units need to be
completed to maintain systern reliability and safety. This budget is monitored and
discussed during a regularly scheduled monthly meeting with the Director.
ER_2060 - Wood Pole Mgmt
a. Wood Pole Managernent is an ongoing Program that maintains Avista's electric facilities
in a safe, effective, reliable manner. Please refer to the Wood Pole Management BCJN in
Company witness Ms. Rosentrater's Testimony, Exhibit No. 11, Schedule 9.
b. Please see Staff-PR-l03 Attachment 206081 2017 Wood Pole Management
Recommendations and Review, ild Staff-PR-I03 Attachment 206082 the Structure
Specific Distribution Feeder Managernent Plan for the analysis, project scope, proposed
budget and schedule. Staff-PR-l03 Attachment 206083 and 206084 for WPM work plan
and pricing.
c. Please refer to the StaffiPR-I03 Attachment 2060C1-2060C5, some of which are
confidential, for Request for Proposal related documentation including a Statement of
Work, confidential bid matrix, work plan, etc.
d. Please refer to construction documentation in the following attachments, Staff-PR-I03
Attachment 2060D1 for agreernent details, Staff-PR-lO3 Attachment 2060D2 for a
monthly work que, Staff-PR-l03 Attachment 2060D3 for the program's monthly update.
Wood Pole Management utilizes a weekly call in meeting to discuss project progress and
any action items. Most action items are resolved the same day. Change order requests are
managed with-in the unit pricing contract. The baseline schedule is inspecting and
completing the follow-up work on 1/5ft ofthe poles in the Distribution system on an annual
basis.
e. Project Completion Analysisi. This is an ongoing Program and lessons learned are updated in any new RFP,
LOU's and unit pricing definitions. Unit pricing has been in place since 2021.
11.
Year 20L8 20L9 2020
Budget S9,ooo,o45 s10,500,000 s10,499,998
Actual 5L0,246,378 s10,533,616 5L0,522,6\4
The baseline schedule is the 20-year cycle and we are currantly on schedule to
complete the cycle on time. The progress is documented annually on the One Pager.
In 2018 additional funding was requested to complete enough work to keep the
Wood Pole Managernent Program on a 20-year cycle.
ER_2074 - Joint Use
a. Please see the BCJN for Joint Use in Company witness Ms. Rosentrater's Testimony,
Exhibit No. l l, Schedule 9 for a fulI description of the need for this work as well as any
alternatives considered.
b. Avista is required by regulation to facilitate the attachment of third-party
telecommunications at their need and therefore, scope, schedule and budget are driven by
the need of others. Avista is also required to replace infrastructure as needed to
accommodate or "make ready" facilities for new attachments. If Avista were to not meet
these obligations, the Company would be subject to penalty. Since Avista is not privileged
to, nor made aware of, the plans of third-party telecommunications attachers in advance,
budgeting for this business case is initially based on the previous year's nominal spend.
Midyear adjustments are made as needed and overall budget accruals are further reduced as
reimbursements for required work is invoiced and collected.
c. Joint Use work is performed by in house crews, as such RFP's are not performed for this
type of work.
d. This work is of ongoing nature which is requested by third-party telecommunications
companies on an as-needed basis to serve our mutual customers. The BCJN, has a helpful
description in section 1.4 of how the team monitors and measures success for making these
investments.
e. Variances to the Joint Use business case budget, as stated in section B, are largely driven
by the number of attachment requests received and the resultant need for Avista to replace,
rearrange, or install new infrastructure to accommodate the new facilities. Detailed
reasoning for budget variances are captured and relayed to the capital planning group for
review and consideration, see Staf[-PR-103 Attachment 2074A. It should be noted that the
Company is able to recover the acfual costs from the requesting attacher as well as a
portion of the cost to replace and maintain shared infrastructure through an annual pole
rental fee.
ER_2075 - Wildfire Resiliency
Please see Mr. Howell's testimony for a detailed description of the need, execution and
budgetary considerations for the Wildfire Resiliency Project.
ER_2204 - Substation Rebuilds
a. This ER is made up of many projects replacing and upgrading major substation apparatus
and equipment as it approaches end of life or becomes obsolete. This is necessary to
maintain safe and reliable operation of Avista's transmission and distibution systems.
1ll.
iv.
Please see the BCJN for Substation Rebuilds in Company witness Ms. Rosentrater's
Testimony, Exhibit No. 11, Schedule 9 for a full description of the need for this work.
Additionally, these smaller substation projects are prioritized within the Engineering
Round Table. The Priest River Rebuild project documentation is attached as an example of
the documentation kept for these types of projects. Please see Staff-PR-l03 Attachment
2204A1 for an example of the request put before the committee for prioritization. The
referenced supporting documentation is also provided in Staff-PR-IO3 Attachment
220442.
b. For project planning documentation, please see Staff-PR-l03 Attachment 22048 for a
detailed planning document including an overview, scope and budget as an example of the
write up that is typically done for the smaller projects within this ER.
c. These construction projects are typically performed by Avista crews or through vendors
we already have contracts with, as such RFP's are typically not performed for this work.
d. For an example of construction documentation that is performed for the projects within this
ER, please see the attached Stafl-PR-IO3 Attachment 2204D1 for budget monitoring and
Staff-PR-I03 Attachment 2204D2 for an example schedule document, both related to the
Priest River Rebuild project, one such project completed within this ER. The overall
progress and monitoring of this ER as a whole occurs in the Engineering Round Table, as
described in section 3 of the BCJN.
e. For project completion analysis, please see an example in Staff-PR-I03 AttachmentZ}}4B
of lessons leamed from the Priest River Rebuild project. Please refer to Staff-PR-IO3
Attachment 2204D1 regarding budget to actuals comparison information and an
explanation of variance.
ER_2215 - Substation Asset Mgmt Capital Maintenance
a. This ER is a part of the Substation Rebuilds business case. It is made up of many projects
replacing assets within substations as asset condition, failure and other factors desm asset
management work is necessary. The projects within this ER are usually less than $50,000.
Please see the BCJN for Substation - Station Rebuilds Program in Company witness Ms.
Rosentrater's Testimony, Exhibit No. I l, Schedule 9 for a full description of the need for
this work. Due to the reactive nature ofthis work, when time allows, these projects may be
prioritized with other work within the Engineering Round Table, an example of the
documentation presented for this prioritization is attached in StaflPR-I03 Attachment
22l5Al for the Spirit Transformer project. The referenced supporting documentation is
also provided in Staff-PR-I03 Attachment 2215A2.
b. Most work completed under this ER is based on emergency need. Equipment has failed
due to animals, lightning, age, operation issue, etc. There is no major plan other than to
replace the equipment as quickly as possible in order to retum to service.
c. These construction projects are typically performed by Avista crews or through vendors
we already have contracts with, as such RFP's are typically not performed for this work.
d. This work is of a responsive nature addressing several smaller projects of asset
managonent concern. Because this work is reactive, the documentation can be variable.
Staff-PR-lO3 Attachment22l5D presents an example of a scoping document forthe Spirit
Transformer project, one such project which was performed under this ER in the glven
timeframe. The BCJN, can be referred to for additional discussion of monitors and
measures for determining success when making these inveshnents.
a. Due to the nafure of this ER where projects are many and unplanned, a formal 'lessons
leamed' is not conducted forthe overall ongoingprogram. Abudget-to-actual comparison
on an overall project and by year basis are attached in Staff-PR-IO3 Attachment 2215E,.
The overall monitoring of this ER as a whole occurs in the Engineering Round Table, as
described in section 3 of the BCJN.
ER-2214 - New Substations
b. This ER is made up of many projects adding new distribution substations and capacity to
the system for load growth and reliability critical to the long-term operation of the system.
Please see the BCJN for Substation - New Distribution Station Capacity Program in
Company witness Ms. Rosentrater's Testimony, Exhibit No. 11, Schedule 9 for a full
description of the need for this work. Additionally, these smaller substation projects are
prioritized within the Engineering Round Table. The Dalton Increase Capacity project
documentation is attached as an example of the documentation written and presented for
these projects. Please see Staff-PR-l03 Attachment 2274A1for the request put before the
committee for prioritization. The referenced supporting documentation is also provided in
StaffiPR- I 03 Attachment 227 4A2.
c. For project planning documentation, please see Staff-PR-IO3 Attachment 22748 for a
detailed planning document including an overview, scope and budget as an example of the
write up that is typically done for the smaller projects within this ER.
d. These construction projects are typically performed by Avista crews or through vendors
we already have contracts with, as such RFP's are typically not performed for this work.
e. For an example of construction documentation that is performed for the projects within this
ER, please see the attached Staft-PR-l03 CONFIDENTIAL Attachment 2274D1 for
budget monitoring and Staff-PR-I03 Attachment 2274D2 for an example schedule
document from the Dalton Increase Capacity project. The overall progress and monitoring
of this ER as a whole occurs in the Engineering Round Table, as described in section 3 of
the BCJN.
f. For project completion analysis, please see an example in Staf[-PR-I03 Attachment
227481 of lessons learned from the Dalton Increase Capacity project. Please refer to
Staft-PR-l03 Attachment 2274E2 and Staff-PR-l03 Attachmerrt 227483 for budget to
acfuals comparison information and an explanation of variance.
ER 2457 - Benton-Othello 115 Recond
a. This is one project within the Transmission Construction Compliance business case,
please see the BCJN in Company witness Ms. Rosentrater's Testimony, Exhibit No.
11, Schedule 9 for a description of the need for this work. The Transmission
Construction Compliance projects are prioritized within the Engineering Round Table
along with other work, the request which was written to submit this project for
prioritization is attached in Staff-PR-l03 Attachment 2457 Al. Additionally, please
see the Staff-PR-l03 Attachment 2457A2 for a Reconductor Study further supporting
the need for this work.
b. For project planning documentation, please see the Reconductor Study identified
above as well as Staff-PR-l03 Attachment 24578 for the Design Scoping Document
which includes discussion of a scope, schedule and cost estimate.
c. For RFP related documents, please refer to Staff-PR-l03 Attachmerfis 2457C folder
which does contain confidential documents, where multiple documents including
Statement of Work and confidential bid comparison sheets have been provided.
d. For construction documentation, please see the attached folder, Staff-PR-l03
Attachments 2457D, also containing confidential documents, for documentation
including schedule, progress update, and confidential change orders.
e. For project completion documentation, please see the attached folder, Staff-PR-I03
Attachments}4iTB where annual expected spend documents are provided.
ER 2470 - Distribution Grid Modernization
a. Please see the BCJN for Distribution Grid Modernization in Company witness Ms.
Rosentrater's Testimony, Exhibit No. 11, Schedule 9 for a full description of the need for
this work.
b. Project Plani. The Grid Modernization program addresses feeders in a holistic fashion and its scope is
a combination of the Distribution Feeder Maintenance Plan (DFMP) and Baseline
Analyses that are performed for each feeder. The DFMP can be found in Staff-PR-l03
Attachment 247081and an example of baseline analysis can be found in Staff-PR-IO3
Attachment 247082.ii. The Program's Cost Baseline and Cost Management Plan, Staft-PR-l03 Attachment
247083, illustrates the methods for establishing and managing the budget of the
program. In the attachment, the 2019 budget is used as an example. The final approved
budget for the years 2018,2019, and 2020 were $15,037,500, $10,600,000, and
$7,600,000, respectively.iii. The Schedule Baseline, Staff-PR-l03 Attachment2470B4, illustrates the process for
establishing and managing the Program's schedule each year based on the approved
budget. The screenshots in subpart (d)(v) represent the 2018, 2019,and2020 schedules
that were managed each year.
Requests for proposal (RFP)
Project requirements are outlined in the Statements of Work, Staff-PR-IO3
Attachments 2470C1 and 2470C2 for 2018 and 2019, respectively. They are also
defined further in the job drawings that instruct crews in the field on the actions to take
at each work location. Examples of these drawings are provided in Staff-PR-IO3
Attachments 2470C3 and2470C4. Please note that the contract for 2019 was extended
through 2020 so the scope of work for 2019 covered 2020.
Specifications for the projects carried out by the program can be best described by the
current overhead and underground construction standards, which evolve overtime, and
the DFMP which was referenced in subpart (b)(i).
The construction unit bid prices for contract P.-41799 can be found in Staff-PR-l03
Confidential Attachment 2470C5. Please note that the price information within this
attachment is confidential and is not to be disclosed or shared.
c
ll
111.
d. Project construction documentation including:i. An example of the construction contract implemented at the conclusion of an RFP can
be found in Staff-PR-I03 Attachmerfi2470Dl.ii. An organizational chart for the winning bid is not readily available due to personnel
changes that the contractor makes. These changes are often communicated in advance.
iii. Please refer to Staff-PR-I03 Attachments 2470C1 and 2470C2 for the scope
documents as they apply to the RFPs covering 2018 to 2020.
iv. The work breakdown structure as it applies to the RFPs covering 2018 to 2020 canbe
illustrated as actions to be taken on the different feeders being addressed by the
program. Once individual feeders have been identified for work, they are divided into
polygons which divide the work on a feeder into manageable chunks. The polygons
include callouts directing crews on the work to be done and allow for Avista inspectors
to verifu that all work was completed according to the design. Polygon design
examples have been provided in Staff-PR-IO3 Attachments24T0C3 and 2470C4.
v. Screenshots of the baseline schedules in 2018, 2019, and2020 are shown below. They
are managed within the Program Log referenced in Staff-PR-I03 Attachmentz47}B4.
201 8
2019
lxrard
ffi
ElEq0rorunFEiTFiE;AI66;86-oEt fr st u ,o# Dff &fr D6t ffi bff ,il ts
-*l toJ 'n*l roJ o*l o*l n*l o*l trl mrl o*l 06
sill rofil roGl rqGl ofll offl 0.o.1 offt oftt D.fit s.fft nqffiffi
oal [al MI affl oill ofil ofil [il1 2lffl 23Gl 2t.ilI ofi
oEl afiI dill odl oill rffl sffl afil D.GI rn|qill qd
rctaffrgr5 o*l oill 06l ro*l $sl $fit s.fft ofit BI oilt oilt u
ocl oill ofil aql 2!fi1 2t6l ,till DGI loffl o.ill ofit u
lffi tfft ,ofl tod rut off ffit Dfit !!#t ffit !.qt
rDBI irl rdill tdill roBl 6Bl b*l bcl n*l roal s*l o.q
un33 F..&r U0!r.0 Ud
RAPat Ed * CoiELt
qBl qGl 0.Bl o.al o.ffil 2ffiI TfiI t*t E*t 0.Bl o.ff1 odfR761 Faaor UmO m
o.*l oql o.Bl o6l o.*l oal o.Bl DfiI ,sI 25ill ttffl !t
dBl oBl oBl dal [al b6l ffil o.6l 0.Gl o.cl o6l o0
:dd
E
:rlo
2020
,.I!Td
EArucdiffit;h Iodarnts bn
vl.
vii.
viii.
AoDlEldre
Monthly status reports (one pagers) are communicated to key Program stakeholders.
These reports include eamed value metrics to show cost and schedule performance,
ongoing design status, and any other applicable updates. One example of these status
reports can be found in Staff-PR-l03 Attachment247}D2.
Action items are often discussed and recorded during regular check-in meetings with
foremen and general foremen. An example of a documented meeting can be found in
Staff-PR- I 03 Attachment 247 0D3.
The Change Order form and process documents used in the 2018 and 2019 RFPs are
included in the Staff-PR-1O3 Attachment 2470D4 and 2470D5, respectively. The
Program's change management plan can be found in Stafl-PR-l03 Attachment
2470D6.
e. Company project completion analysis
i. Dating back to at least August of 2018, lessons learned have been shared throughout
the program when a feeder's construction has been completed. An example of this
documentation can be seen in Staff-PR-l03 Attachment247}El.
ii. Please refer to the Staff-PR-l03 Attachment 247082, 247083, and 247084 for the
budget-to-actual comparisons of 2018 to 2020, respectively. The CPI value indicates
the Program's budget performance.
iii. Please refer to the Staff-PR-I03 Attachment 247082, 247083, and 2470E4 for the
budget-to-actual comparisons of 2018 to 2020, respectively. The SPI value indicates
the Program' s schedule performance.
iv. In Staff-PR-l03 Attachment 247083, the 2019 Grid Modemization budget was
different from the actual cost by 5%. Looking at the budget and actual spend amounts
on page 2 of the attachment, the TUR I lz,PDLl2}l , and M I 55 14 Automation projects
exceeded their expected costs. These additional costs were attributed to increased
material costs and unforeseen field conditions among other contributing factors.
ER_2515 - Distribution - CdA East & North
a. Please see the BCJN for Distribution System Enhancements in Company witness Ms.
Rosentrater's Testimony, Exhibit No. 11, Schedule 9 for a full description of the need for
this work as well as any alternatives considered. Staff-PR-lO3 Attachment 2515,4. has a
list of all the individual projects and their final spend that have been completed as part of
Expenditure Request (ER) 2515 since 2018.
b. The work performed under Distribution System Enhancements is driven by the need to
solve performance and capacity issues (generally driven by load growth), address power
quality challenges, improve customer reliability, increase operational flexibility, address
distribution system protection issues, and enhance overall safety of the electric distribution
system.i. As projects are identified, the general project scope is documented with a Project
Requirernents Diagram (PRD) and added to a project list and targeted for
completion in a certain future calendar year. See Staff-PR-l03 Attachment 25158
for an example of a PRD.ii. An overall company budget is assigned for Distribution System Enhancsrnents, and
the proportion of the overall funds that are allocated to each ER that is part of this
business case is based primarily on the number of company line crews in a
particular area. This is due to the fact that this work is generally performed by
company crews. For example, in 2021 a total $6,000,000 was assigned to this
business case, with the funds being proportionally allocated as follows, based on
company crew resources in each region of the company:
i. ER 2514 (Spokane & Deer Park) - $2,357,100
ii.ER 2515 (CDA East & North) - $1,714,300
iii. ER 2516 (MoscoW?ullman, Lewiston/Clarkston, & Grangeville) - $1,071,400
iv.ER 2623 (Colville, Othello, Davenport) - $847,100iii. The project list contains projects for the next 5 years. The project list is reviewed
on an annual basis, prior to setting the next year's budget, with project timelines
being adjusted based on the most current needs. See Staff-PR-l03 Attachment
2515C for the most current project list for ER 2515.
c. Distribution System Enhancernent work is typically performed by company crews, and as
such RFP's are not generally performed for this type of work. Occasionally, the scope of
work for a project may be either too large in scope or has unique requirements that would
make the project fit better for a contractor to complete rather than a company crew. In
those rare situations, a project will be put out for competitive bid. None of the ER 2515
projects completed since 2018 fit into this category. Portions of a project are occasionally
contracted out to a specialized contractor that has a contract agreement with Avista. The
most typical example of when this happens is for conduit work, directional boring, and
trenching/excavation. In these cases, a cost estimate is generally provided by the
contractor for the proposed work prior to having them proceed.
d. Project Construction Documentationi. A monthly budget meeting is held, involving all of the company Operations
Engineers who are the key contacts and project sponsors for the individual
Distribution Syston Enhancement projects, including those within ER 2515 as well
as the other ER's. At this meeting, a status update is provided on each project in
regards to schedule, expected spend, design and construction progress, etc. At the
end of the year, time is spent reviewing the final budget numbers and compare
original budget to final spend in order to learn from each other's projects and try to
improve accuracy for the next year's budget cycle.
Each construction office has periodic work planning meetings where all of the
planned work for the year is reviewed against crew resource availability. The
Distribution System Enhancernent projects are a component of this overall
workplan, and the anticipated schedule for project construction is maintained in the
l1
workplan spreadsheet. See StaffiPR-lO3 Attachment 2515D for an example of the
CDA Area Workplan for 2021, showing the anticipated completion schedule of the
Distribution Systern Enhancernent projects.
e. Project Completion Analysisi. At the end of the year, time is spent in a meeting involving all of the company
Operations Engineers reviewing the final budget numbers and compare original
budget to final spend in order to learn from each other's projects and try to improve
accuracy for the next year's budget cycle.ii. The reasons and contributing factors for budgeted spend differing from actual
spend for individual projects is discussed at the monthly Operation Engineer
budget meetings, but no formal documentation for the reasons of the variances has
historically been created or maintained at the ER level. The Distribution System
Enhancements business case as a whole is evaluated and reviewed in a monthly
Electrical Engineering Manager budget meeting. At this manager meeting any
variances which are'il- l0%o or +/- $50,000, the lower of the two, are required to
have a funds request/release form submitted to the Capital Planning Group (CPG).
The CPG reviews the forms, with included justifications, and approve or deny the
request/releases accordingly.
ER_2531 - Westside 230 kV Substation - Rebuild
a. Please see the BCJN for Westside 230ll15kV Station Brownfield Rebuild Project in
Company witness Ms. Rosentrater's Testimony, Exhibit No. 11, Schedule 9 for a fulI
description of the need for this work as well as any alternatives considered.
b. For project planning documentation, please see StaflPR-l03 Attachment 25318 for a
detailed planning document including an overview, scope and budget.
c. These construction projects are typically performed by Avista crews or through
vendors we already have contracts with, as such RFP's are typically not performed for
this work.
d. For construction documentation, please see Staff-PR-l03 Attachment 2531D1 for a
schedule, Staff-PR-l03 Attachment 25318 for additional design and construction
details, StaSPR-lO3 Attachment 2531D2 for construction update meeting minutes and
StaflPR-l03 Attachment 2531D3 for a budget discussion for project completion to
date.
e. This project is not complete, therefore, completion analysis documentation is not
available.
ER_2556 - CDA-Pine Creek 115kV Transmission Line: Rebuild
a. This is one project within the Transmission Construction Compliance business case,
please see the BCJN in Company witness Ms. Rosentrater's Testimony, Exhibit No.
11, Schedule 9 for a description of the need for this work. Additionally, within the
provided zip file, please see the folder ER_2579 Low Priority Rating Mitigation
Attachments which contains a folder, Staff-PR-l03 Attachments 2556A with
additional support of the need of this work.
b. For project planning documentation, please see Staff-PR-lO3 Attachments 25568
folder where multiple planning documents have been provided.
c. For RFP related documents, some confidential, please refer to Staff-PR-lO3
Attachments 2556C folder where multiple documents, including Statement of Work
and confidential bid comparison sheets have been provided.
d. For construction documentation, some confidential, please see the attached folder,
Staff-PR-I03 Attachments 2556D for documentation including schedule, progress
update, and confidential change orders.
e. For project completion documentation, please see the attached folder, Staff-PR-l03
Attachments 2556E where annual expected spend documents are provided.
ER_2579 - Low Priority Ratings Mitigation
a. Please see the BCJN for Transmission NERC Low Priority Rating Mitigation in
Company witness Ms. Rosentrater's Testimony, Exhibit No. 11, Schedule 9 for a
description for the need of this work. Additionally, within the provided zip file, please
see the folder ER 2579 Low Priority Rating Mitigation Attachments which contains a
folder, Staff-PR-IO3 Attachments 2579A with additional support of the need of this
work.
b. For project planning documentation, please see Staff-PR-IO3 Attachments 25798
folder where multiple planning documents have been provided.
c. For RFP related documents, please refer to Staff-PR-I03 Attachmerrts 2579C folder
where multiple documents, including Staternent of Work and confidential bid
comparison sheets have been provided.
d. For construction documentation, please see the attached folder, Stafl-PR-l03
Attachments 2579D for documentation including schedule, progress update, and
confidential change orders.
e. For project completion documentation, please see the attached folder, Staff-PR-l03
Attachments25T9E where annual expected spend documents are provided.
ER_2580 - South Region Transmission Voltage Control
a. Please see the BCJN for this project in Staff-PR-IO3 Attachment 2580A1 for a full
description of the need for this work as well as any alternatives considered.
Additionally, this project was reviewed and prioritized within the Engineering Round
Table. The request put before the committee for prioritization is attached in
Staff-PR- I 03 Attachme nt 2 580 A2.
b. For project planning documentation, please see the System Planning Assessment
provided in Staff-PR-103 Attachment 2580B for a detailed planning document.
c. These construction projects are typically performed by Avista crews or through
vendors we already have contracts with, as such RFP's are typically not performed for
this work.
d. Please see Staff-PR-I03 Attachment 2580D1 for the project scope and Staff-PR-lO3
Attachment 2580D2 for the project schedule.
e. Forproject completion analysis, please see Staff-PR-IO3 Attachment 2580E forbudget
to acfuals comparison information.
ER_2604 - Lind-Warden 115kV Transmission Line Rebuild
a. Please see the BCJN for Rattlesnake Flat Wind Farm Project I 15kV Integration Project
in Company witness Ms. Rosentrater's Testimony, Exhibit No. l l, Schedule 9 and the
attached notice to proceed, Staff-PR-lO3 Attachment 2604A.
b. For project planning documentation, please see the attached Facilities Study,
Staff-PR-l03 Attachment 260481 and260482, which includes a discussion of scope,
schedule, and project estimates.
c. For RFP related documentation, please see Staff-PR-lO3 Attachment 2604C1 and
2604C2 for Staternent of Work documents and Staff-PR-l03 CONFIDENTIAL
Attachment 2604C3 for the bid comparison sheet.
d. Please refer to the many provided attachments (some confidential) in the folder
Staff-PR-lO3 Attachments 2604D for design document related to this project,
including a master schedule, regular status update reports and confidential change
orders.
e. For project completion analysis, please see the three attachments, Staff-PR-I03
Attachment 26O4El, Staffi PR- 1 03 Attachment2 6O4E2 and Staff-PR- 1 03 Attachment
2604E3 for documentation.
ER_2605 - Saddle Mountain Integration
The Saddle Mountain Project was a two-part project with the 230kV portion and the I 15kV
portions being constructed on dif[erent timelines with the 230kV portion starting first then
rolling into the l l5kv work next. The project documents for that substation were named
accordingly as 'SDM 230' and 'SDM 115'.
a. Please see the BCJN for Westside 230lll5kV Station Brownfield Rebuild Project in
Company witness Ms. Rosentrater's Testimony, Exhibit No. I l, Schedule 9 for a full
description of the need for this work as well as any alternatives considered. As well as
the attached Project Initiation Charter document, StaffiPR-I03 Attachment 2605A
"Saddle Mountain Project Charter 2015.08.10" which provides justification for the
need to build a new substation.
b. For pdect planning documentation, please refer to Staff-PR-l03 Attachment 2605A
"Saddle Mountain Project Charter 2015.08.10" and Staff-PR-l03 Attachment 26058
"SDM Scoping Memo " for detailed project scope, schedule and budget information.
c. Please find Requests for Proposals (RFP) documentation attached, including a
Statement of Work for Electrical Contractor/Construction Manager Services (EC/CM)
in Staft-PR-l03 Attachment 2605C1 *R-42220 kFP Exhibit A Statement of Work".
Specifications for EC/CM, concrete foundations, steel erection, equipment, materials,
the CMU panel house, and full electrical substation construction and drawings are too
numerous to include in this response, however, please see documentation provided in
(d)(i) below for lists of specs and drawings. The short list bidder scorecard for this
project is provided in Staff-PR-l03 CONFIDENTIAL Attachment 2605C2 *kFP
Score Calculation", identifuing Michels Power as the selected contractor.
d. Please refer to the many provided attachments in the folder Stafl-PR-I03 Attachments
2605D (some confidential) for detailed construction documentation related to this
project, including a detailed schedule, progress updates, regular status update reports
and confidential change orders.
e. For project completion analysis, please see the attached documentation of lessons
leamed in Staff-PR-IO3 Attachment 2605E1 and project completion analysis in
StaffiPR-l 03 Attachment 260582.
ER_2618 - Rattlesnake Flat 115kV Wind Farm Project
The Rattlesnake Flats Project also became known as the Neilson Substation project as that
is what the substation was officially named and the project documents for that substation
were named accordingly as 'Neilson'.
a. Please see the BCJN for Rattlesnake Flat Wind Farm Project l l5kV Integration Project
in Company witness Ms. Rosentrater's Testimony, Exhibit No. 11, Schedule 9 and the
attached Project Initiation Charter document, StaffiPR-103 Attachment 2618A. These
two documents provide justification for the need to build a new substation and FERC
regulation to provide wind generation customers a point of interconnection.
b. For project planning documentation, please refer to Staft-PR-l03 Attachment 2618A
as well as StaflPR-I03 Attachment 26188 for additional scope, budget and schedule
planning detail.
c. Please find RFP documentation for EC/CM Services for the Saddle Mountain
Substation project in Staff-PR-IO3 Attachmeit 2605C1 *R-42220 RFP Exhtbit A
SOW". The results and contractor selection from this RFP were also used for the
Neilson Substation project as both projects were to be EC/CM Contractor-constructed
substations located in the same region with similar project timelines. Specifications for
ECICM, concrete foundations, steel erection, equipment, materials, the CMU panel
house, and full electrical substation construction and drawings are too numerous to
include in this response, however, please see documentation provided in (dXi) below
for lists of specs and drawings. The short list bidder scorecard for this project is
provided in StaflPR-lO3 CONFIDENTIAL Attachment 2605C2 "RFP Score
Calculation", identiffing Michels Power as the selected contractor.
d. Please refer to the many provided attachments in the folder Staff-PR-l03 Attachments
2618D, some of which are confidential, for detailed construction documentation
related to this project, including a detailed schedule, progress updates, regular status
update reports and confidential change orders.
e. For project completion analysis, please see the attached documentation of lessons
learned in Staff-PR-lO3 Attachment 2618E1 and project completion analysis in
Staff-PR-lO3 Attachment 2618E2. \"he project budget overall aligned with the
three-year budgeting plan for 2018, 2019, and into 2020. We did not use some of the
planned funds in 2020 as the overall cost and labor hours estimated to support and
integrate with the wind farm were significantly less than we had anticipated.
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
IDAHO DATE PREPARED: 0411512021
AVU-E-21-01 / AVU-G-21-01 WITNESS: H. RosentraterA(. SchultzIPUC RESPONDER: Justin Baldwin-Bonney
Production Request DEPARTMENT: Regulatory AffairsStaff-104 TELEPHONE: [phone]
REQUEST:
Please provide the following documentation for each natural sas capital project with a budget
amount of $1,000,000 or more that was completed from 2018 through the current date (where
requested information has not been provided, please explain why it was not provided and how the
Company assured the construction of the project was completed at least cost):
a. Analysis of Need - a justification of need for each project along with a cost/benefit
analysis comparison of alternatives.
b. Project Plani. Initial project scope.ii. Proposedbudget.iii. Proposedschedule.
c. Requests for proposals (RFP)
i. Project requirements.ii. Specifications.iii. Short list bidder scorecard.
iv. RFP from winningbid.
d. Project construction documentation including:i. Construction contract.ii. Organizational chart.iii. Scope document.
iv. Work breakdown structure.
v. Baseline Schedule.
vi. Monthly project status report(s).
vii. Action items list(s).
viii. Confractors change order request(s).
e. Company project completion analysisi. Lessons learned.
ii. Budget-to-actual comparisons for overall project and by year.
iii. Baseline schedule-to-actual schedule comparison.
iv. For any actual costs differing from the budget amount by plus or minus 5 percent
during a particular year please list and explain the reason(s) for the budget
amount dif;ference.
RESPONSE:
Please see Avista's response to Staff PR_104C, which contains TRADE SECRET,
PROPRIETARY or CONFIDENTIAL information and exempt from public view and are
separately filed under IDAPA 31.01.01, Rule 067 and233, and Section 9-340D,Idaho Code.
Natural gas expenditure requests (ERs) with total annual transfers to plant of $1,000,000 or more,
on an Idaho allocated basis, for 2018 through February 2021 include three ERs: ER_3008 -
Aldyl-A Pipe Replacement, ER_3003 - Gas Replacement Street and Highway, and ER_3301 -
Rathdrum Prairie HP Gas Reinforcement. Two of the ERs selected, ER_3008 - Aldyl-A Pipe
Replacement and ER_3003 - Gas Replacement Street and Highway, are programmatic in nature
and are comprised of various individual projects over many areas within Avista's jurisdiction.
ER_3301 - Rathdrum Prairie HP Gas Reinforcement had three separate projects within transfer to
plant balances from January 2018 through February 2021. The high-pressure reinforcement
project in Post Falls, totaling approximately $3 million that transferred to plant in 2018, comprises
the majority of transfers to plant under this ER for the period referenced above. The remaining two
projects consisted ofthe Post Falls Gate2l5 telanehy equipment, totaling approximately $70,000,
and some trailing charges for the Coeur d'Alene HP Gas Reinforcement, totaling approximately
$ 1 15,000. Documentation specific to the telemetry project is not included below.
In addition to the specific project information being provided below, please see Staff-PR-096 for
an overview of the Company's methodology for planning, monitoring and completing capital
projects.
ER_3008 - Aldyl -A Pipe Replacement
a. Analysis of Need
Please see the Business Case Justification Narrative (BCJN) for the Gas Facility Replaconent
Program (GFRP) Aldyl-A Pipe Replacement in Company witness Ms. Rosentrater's
Testimony, Exhibit No. I l, Schedule 9 for a full description of the need for this work including
the alternatives considered. The Company's 2020 Natural Gas Infrastructure Plan, contained in
Company witness Ms. Rosentrater's Testimony, Exhibit No. I l, Schedule 4, also discusses the
Aldyl-A Pipe Replacement program.
b. Project Plan
Please see the GFRP Aldyl-A Pipe Replacement BCJN in Company witness Ms. Rosentrater's
Testimony, ExhibitNo. 11, Schedule 9 for a full description of the GFRP scope,Z0-year
schedule, and budget. As discussed in Company witness Ms. Rosentrater's testimony, the
Company has continued to re-evaluate the analysis since the initial work was completed,
which has confirmed Avista's approach and timeline for managing this issue. Please also see
the most recent report updating this analysis, conducted in 2018, and contained in Company
witness Ms. Rosentrater's Testimony, Exhibit No. 11, Schedule 6.
The GFRP has developed and submitted a BCJN and provides annual 5-year Capital Budget
updates to Avista's Financial Planning & Analysis Group for review by Avista's Officers and
Finance Council. The GFRP's annual budget is rolled into the Company wide Capital Plan.
The Capital Budget approval is granted by the Board of Directors Finance Committee.
Once a project budget is established, the GFRP generates and submits a Capital Project
Request (CPR) to Utility Accounting, whom in tum assigns a discrete project account number
for each project. Refer to Staff PR - 104 Attachment A for a listing of individual projects and
total transferred to plant for the years within scope of the request. The GFRP utilizes Eamed
Value measurement to track and monitor the Program, as well as individual projects.
GFRP Aldyl-A Pipe Replacement planned projects are categorized as follows:
o Major Projects:
Major projects are planned and managed under the direct control of the GFRP with its own
dedicated distribution pipeline contractor under a 5-year unit price contract. For this body of
work, the GFRP generates detailed project estimates that utilize current Unit Price Contact
prices, project design, anticipated project conditions, impediments, construction
methodologies, and proj ect quantity assumptions.
o Minor Projects:
Minor projects and budgets are assigned by the GFRP to local district resources that operate in
their respective areas. The local district is responsible to execute the work under their local
contract. Minor project budgets are based on the basic scope of work multiplied by the current
average cost per foot, or cost per unit assumptions. The GFRP tracks the budgets and progress
throughout the year.
c. Requests for proposals (RFP)
The GFRP is dedicated to the delivery of projects in the most cost/budget efficient manner
possible. GFRP utilizes multi-year conhacts (5-year contract is typical) through Request for
Proposals (RFPs) for cost stability and amortization of constructors' start-up and equipment
cost across multiple years of programmed work quantities. The RFP process ensures the best
market rate pricing is being achieved. To ensure the GFRP's body of work is being performed
at market rate, the GFRP issued a RFP to solicit bids in late 2017 . NPL was awarded the 5-year
contract (2018 to 2022). Refer to the following for each item:
o StaffPR 104 - Attachment B - Project Requiranents / Specificationso StaffPR 104 - Confidential Attachment C - Bidder Scorecard (Confidential)o StaffPR 104 - Confidential Attachment D - RFP from winning bid
d. Project construction documentation:
e StaffPR 104 - Confidential Attachment E.l - Construction contracto StaffPR 104 - Attachment F - Organizational chart.o StaffPR 104 - Attachment B - Scope document, work breakdown structure and Baseline
Scheduleo Monthly project status reports - The GFRP utilizes the ER_3008 project data provided by
Financial Planning & Analysis, in combination with project progress tracking data, to track
and document that stafus of each project, as well as program wide perfornance. The GFRP
generates and delivers a Budget Update presentation monthly to the intemal Stakeholders.
The presentation summarizes both budget and project progress in terms of percent of work
complete and includes program wide Earned Value results. A sample of Annual Budget
Summaries Updates are attached as Staff PR 104 - Attachment G.l - G.3 for the years
within scope of the request.. Specific action item lists are not used in conjunction with the GFRP Aldyl-A Pipe
Replacement. Refer to the Budget Update presentations (StaffPR 104 -Attachment G.l -
G.3) for items completed and upcoming action items.o Contractor Change Order Requests Five (5) contract amendments have been
incorporated into the contract. See Staff PR 104 - Confidential Attachments E.2 - E.6.
e. Company project completion analysts
GFRP projects are set-up as "blanket projects" and are transferred to plant (TTP) each month
as new pipe is installed and made "used and useful".
Eamed Value results are updated monthly by entering the actual percent of work completed
and the actual costs. The GFRP utilizes the Earned Value results to ensure the entire program is
on track, or when a course correction is warranted. Additionally, the GFRP drills down and
monitors the work performance for each individual project.
As noted in the BCJN in Ms. Rosentrater's Testimony, Exhibit No. I l, Schedule 9, the
program is not anticipated to be completed until 2031.
ER_3003 - Gas Replacement Street and Highway Program
a. Analysis ofNeed
Please see the BCJN for Gas Replacement Street and Highway Program in Ms. Rosentrater's
Testimony, Exhibit No. 11, Schedule 9 for a full description of the need for this work. As
noted within her testimony, there is no alternative to this program since the Company is
required to move its facilities, within a specified time frame, when notified by local
jurisdictions pursuant to our franchise agreements.
b. Project Plan
Please see the BCJN for Gas Replacement Street and Highway Program in Ms. Rosentrater's
Testimony, Exhibit No. 11, Schedule 9. As noted within Ms. Rosentrater's Testimony, these
jurisdictional projects are outside Avista's control, and because it's impossible to forecast the
year-to-year costs, this program and its ultimate costs are subject to considerable variability.
Refer to Staff PR - 104 Attachment H for a listing ofindividual projects and total transferred to
plant for the years within scope of the request.
c. Requests for proposals (RFP)
This work is performed by in house crews or contracted dock crews, as such RFP's are not
performed for this type of work.
d. Project Construction Documentation
This is programmatic work and is driven by state/county/city road projects each year. This ER
is made up of many small individual projects that are not of the scope or size to warrant the
formal documentation requested. Refer to Staff PR 104 Attachment H for detailed list of
individual projects within the scope of this request.
e. Company Project Completion Analysis
i. Due to the nature of this business case where projects are typically small and
unplanned, a lessons-learned is not conducted for individual projects.
Job estimates for the projects funded by this program are not tracked on an individual
basis. The overall ER budget is monitored and discussed during a regularly scheduled
monthly meeting with the Natural Gas Director.
The annual budget is set each year based on historical spend and knowledge of
upcoming projects. The budget is frequently adjusted throughout the year when the
need occurs. The actual amount spent often differs from the budgeted amount because
11.
ll1.
the municipal projects that drive this work are very dynamic in nature and can fluctuate
drastically from one year to another.
ER 3301 - Rathdrum Prairie HP Gas Reinforcement
a. Analysis of Need
Please see the BCJN for Gas Rathdrum Prairie HP Main Reinforcement in Ms. Rosentrater's
Testimony, Exhibit No. 1 1, Schedule 9 for a full description of the need for this work including
the alternatives considered.
b. Project Plan
Please see the BCJN for Gas Rathdrum Prairie HP Main Reinforcement in Ms. Rosentrater's
Testimony, Exhibit No. I l, Schedule 9.
i. Initial Project Scope: This project was divided up into two phases called the Coeur
d'Alene 6" HP Reinforcement (completed in 2017) and the Post Falls 6" HP
Reinforcement (completed in 2018). Staff PR 104 - Attachment I were the plan
drawings developed fort the project, StaffPR 104 - Attachment J are for the Post Falls
Reinforcement project plans.
Though the initial expected budgets based on unknown needs were listed at $10 million
of capital costs, budgets were adjusted to provide a total of $3.3 million for the Coeur
d'Alene Reinforcement and $2.5 million budgeted for the Post Falls Reinforcement.
The Coeur d'Alene 6" HP Reinforcement was scheduled to be completed by December
31,2017 and the Post Falls 6" HP Reinforcement was scheduled to be completed by
Decerrrber 31, 2018.
c. Requests for proposals (RFP)
i. Refer to Staff PR I 04 - Attachment K and Staff PR I 04 - Attachment L for staternent of
work for Coeur d'Alene and Post Falls reinforcement projects respectively.
Specifications for the RFP are attached in StaffPR 104 - Attachment M and StaffPR
104 - Attachment N for Coeur d'Alene and Post Falls reinforcement projects
respectively.
Refer to Staff PR 104 - Confidential Attachment O and Staff PR 104 - Confidential
Attachment P for Avista's Short Bid Matrix for Coeur d'Alene and Post Falls
reinforcement projects respectively.
Refer to Staff PR 104 - Confidential Auachment Q and Staff PR 104 - Confidential
Attachment R for winning bids for Coeur d'Alene and Post Falls reinforcement projects
respectively.
d. Project construction documentation:
Refer to Staff PR 104 - Confidential Attachment S and Staff PR 104 - Confidential
Attachment T for executed contracts for Coeur d'Alene and Post Falls reinforcement
projects respectively.
ur.
11.
111.
1V
l.
Refer to StaffPR 104 - Confidential Attachment Q and StaffPR 104 - Confidential
Attachment R for Coeur d'Alene and Post Falls reinforcement projects organization
charts.
111 As this was contracted work, scope is identified in StaffPR 104 - Attachment K and
StaffPR 104 - Attachment L for statement of work for Coeur d'Alene and Post Falls
reinforcement proj ects respectively.
lv.The work breakdown structure can be found in StaffPR 104 - Confidential Attachment
Q and Staff PR 104 - Confidential Attachment R for Coeur d'Alene and Post Falls
reinforcement projects, pages I t and 8-10 respectively.
The Coeur d'Alene 6" HP Reinforcement was scheduled to be completed by Decernber
31,2017 and the Post Falls 6" HP Reinforcement was scheduled to be completed by
December 31,2018.
Project status reports were provided via email. Refer to StaffPR 104 - Attachment U
for fulI chain of project updates on the Coeur D'Alene reinforcement project and Staff
PR 104 - Attachment V for first and last email update for the Post Falls reinforcement
project.
vii. Action item lists were not used for these projects. Refer to work tasks located in
Statements of Work in StaffPR 104 - Attachment K and StaffPR 104 - Attachment L
for Coeur d'Alene and Post Falls reinforcement projects respectively.
viii. There were no contractor change orders for either the Coeur d'Alene 6" HP
Reinforcement project or the Post Falls 6" HP Reinforcement project.
e. Company project completion analysis
No specific Lesson's Learned document was prepared for these projects. However, the
cost for trucking and material backfill was not included accurately in the project
estimating, which resulted in the actual costs being higher than the estimated costs.
Coeur d'Alene 6" HP Reinforcement budget estimate : $3,292,491
Coeur d'Alene 6" HP Reinforcement actual cost: $3,511,427
Post Falls 6" HP Reinforcement budget estimate : $2,491,087
Post Falls 6" HP Reinforcement actual cost: $2,991,816
iii. The Coeur d'Alene 6" HP Reinforcement was scheduled to conclude by December 31,
2017 and was placed into service on August 31, 2017. The Post Falls 6" HP
Reinforcement project was scheduled to conclude by December 31, 2018 and was
placed into service on Novernber 30, 2018.
For both the Coeur d'Alene 6" HP Reinforcement and Post Falls 6" HP Reinforcement
projects, the main factors that resulted in the actual costs being higher than the estimated
costs were conhactor trucking and backfill material charges and Avista crew labor.
ll
v
vl.
1.
11.
lv.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATION
JURISDICTION: IDAHO DATE PREPARED: 041121202r
CASE NO: AW-E-21-01 / AW-G-21-01 WITNESS: Elizabeth Andrews
REQUESTER: IPUC RESPONDER: Joel AndersonTYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff-105 TELEPHONE: [phone]
REQUEST:
Please provide a list of all ftansactions booked since 2018 to FERC Regulatory Asset Account No.
182.314 - Other Reg Asset - Fiserv allocated or directly assigned to the Company's Idaho Natural
Gas jurisdiction.
RESPONSE:
Please see Staff DR 105 Attachment A forthe requested information.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AW-E-2 r -01 / AVU-G-2I -01
IPUC
Production Request
Staff-106
DATE PREPARED: 0411312021WITNESS: D. Howell / E. Andrews
RESPONDER: Justin Baldwin-Bonney
DEPARTMENT: Regulatory Affairs
TELEPHONE: [phone]
REQUEST:
Please provide a list of all transactions booked since 2018 to FERC Regulatory Asset Account No.
182.344 - Reg Asset - Wildfire Resilience allocated or directly assigned to the Company's Idaho
Electric j uri sdiction.
RESPONSE:
There has been a total of four transactions to date specific to 182.344 - Reg Asset - Wildfire
Resiliency, with the first being booked in Decernber of 2020. These were done in accordance with
Final Order 34883, issued in Case AW-E-20-05.
Account
182344
407442
407444
FERC Account Description
REG ASSET - WILDFIRE RESILIENC
WILDFIRE RESILI ENCY DEFERRED
DEPR
WILDFIRE RESILI ENCEY DEFERRED
o&M
lD ED 202012
Jur SrvID EDID ED
Period
202012
202012
Db
1,006,452
Cr
26,105
980,347
182344
407442
407444
REG ASSET - WILDFIRE RESILIENC
WILDFIRE RESILI ENCY DEFERRED
DEPR
WILDFIRE RESILIENCEY DEFERRED
o&M
202101
202101
202101
5,862
4,328
1,534
ID
ID
ID
ED
ED
ED
182344
407442
407444
REG ASSET - WILDFIRE RESILIENC
WILDFIRE RESILIENCY DEFERRED
DEPR
WILDFIRE RESILIENCEY DEFERRED
o&M
202102
202',102
202102
31,361
31
31,330
ID
ID
ID
ED
ED
ED
182344
407444
REG ASSET - WILDFIRE RESILIENC
WILDFIRE RESILIENCEY DEFERRED
o&M
202103
202103
83,878
83,878
ID
ID
ED
ED