20230531AVU to Staff 203-205.pdf

AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 05/31/2023 CASE NO: AVU-E-23-01/AVU-G-23-01 WITNESS: Scott Kinney/K. Schultz REQUESTER: IPUC RESPONDER: Liz Andrews TYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff – 203 TELEPHONE: [phone] REQUEST: Please provide the actual expenses of Western Resource Adequacy Program ("WRAP") for the test
year (12 months ending June of 2022). RESPONSE:
Test period WRAP expenses (July 1, 2021 – June 30, 2022) totaled approximately $253,000
(system). See Staff_PR_204 and Staff_PR_204 Attachment A for the detail of WRAP test period expenses, Rate Year 1 and Rate Year 2 expected expenses, and the impact on the Company’s proposed revenue requirement.

RECEIVED
2023 May 31, 5:53PM
IDAHO PUBLIC
UTILITIES COMMISSION
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 05/31/2023 CASE NO: AVU-E-23-01/AVU-G-23-01 WITNESS: Scott Kinney/K. Schultz REQUESTER: IPUC RESPONDER: Liz Andrews TYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff – 203 TELEPHONE: [phone] REQUEST: Please provide the updated pro forma values of WRAP expenses based on the new WRAP budget
forecast referenced in Response No.191.
RESPONSE:
Please see Staff_DR_204 Attachment A for WRAP expenses budgeted and approved by the Western Power Pool ("WPP") Board on May 31, 2023.1
Please note, the Company did not take into consideration the actual test period expense for WRAP of
$253,000 (system) in error. To correct for the oversight, and adjusting for the final WPP WRAP Avista system annual expenses approved on May 31, 2023 of $276,000 (2023), $266,000 (2024) and $244,000 (2025). This correction reduces the WRAP pro forma incremental expense to $17,000 system ($6,000 ID share), rather than the as-filed $350,000 system or $121,000 Idaho share pro
formed by the Company. This would build in a pro forma expense level of $270,00 ($93,000 Idaho
share) pro rata amount. We could then reduce RY2 by $6,000 Idaho share to reflect a RY2 amount of $357,000 ($87,000 Idaho share). The impact of this correction would reduce pro forma generation expense and revenue requirement
by $115,000 in RY 1 and $6,000 in RY2 from that as-filed by the Company. Please note, that although this was included in PF 3.00P (Power Supply) Adjustment for ease, it is not an expense included in the PCA/Authorized base. It was included here for ease and supported by
witness Kinney.
The Company included Idaho’s share of the 2023 level of $350,000 for the Two-Year Rate Plan as the amounts provided in testimony were preliminary. Avista assumed it would adjust the balances during the process of the case if the amounts for 2023 – 2025 varied. As shown
in Staff_PR_191C Avista’s revised total is expected to be approximately $377,000 (2023), $371,000 (2024) and $352,000 in 2025. Therefore the $350,000 pro formed by Avista is reasonable.
1 WRAP expenses were updated to reflect 22 members as of April 2023 – additional new members added since
responding to Staff_PR_191 reducing Avista’s overall annual expense.
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 05/31/2023 CASE NO: AVU-E-23-01/AVU-G-23-01 WITNESS: Scott Kinney/K. Schultz REQUESTER: IPUC RESPONDER: Liz Andrews TYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff – 205 TELEPHONE: [phone] REQUEST: Response No. 191 states the new WRAP budget forecast is presented to the Western Power Pool
("WPP") Board in May for approval. Has the budget forecast been approved as proposed? If modifications are made, please provide the approved forecast.
RESPONSE: The Western Power Pool ("WPP") Board approved the WRAP budget forecast on May 31, 2023. Please see Staff_PR_204 for the approved annual expenses and Avista’s share of those expenses.