20230518AVU to Staff 1-7.pdf

AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 05/15/2023 CASE NO: AVU-E-23-02 / AVU-G-23-02 WITNESS: N/A REQUESTER: IPUC RESPONDER: John Spanos TYPE: Production Request DEPARTMENT: Consultant
REQUEST NO.: Staff-001 TELEPHONE: [phone] REQUEST NO 1:
Please explain the circumstances that caused a significant increase in the cost of asset removal between the years 2013 and 2016, for accounts 356, and 361 through 370.
RESPONSE: The 2013 and 2016 transactional data was included in the last depreciation study. There does not appear to be an increase in the cost of asset removal for years 2013 and 2016 for Account 356, Overhead Conductor and Devices. Actually 2013 and 2016 cost of removal
amounts are lower than most other years. For the distribution accounts 361 through 370,
there are some years that cost of removal is higher in 2013 and 2016 than in other years. First, it must be understood that cost of removal and gross salvage amounts are not always recorded in the same year as the retirement. In certain cases, cost of removal and gross salvage may not be unitized until a year or two or more after the retirement occurs. Second,
quite a bit of the cost of removal in 2013 and 2016 are offsetting prior year cost of removal. There was a large catch up of cost of removal that had been recorded in prior years. As an example, see Account 368, page VIII-78 of the 2021 Depreciation Study, where years 2011, 2012, 2013 and 2014 had negative cost of removal. The amounts in 2015 and 2016 were to correct the prior year amounts. Once comparing the results of 2011 to 2016 time period the
overall results are as expected.
RECEIVED
2023 May 18, 4:38PM
IDAHO PUBLIC
UTILITIES COMMISSION
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 05/15/2023 CASE NO: AVU-E-23-02 / AVU-G-23-02 WITNESS: N/A REQUESTER: IPUC RESPONDER: Paul Kimball TYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff-002 TELEPHONE: [phone] REQUEST: Please provide all audit and/or data request questions issued by parties in other states along with
the Company's response for any Company filed depreciation case relating to the 2021 Gannett Fleming Depreciation Study. This should include confidential questions and responses. Please consider this an ongoing request.
RESPONSE: Enclosed electronically are copies of all data requests and responses associated with the current depreciation study filings in all state jurisdictions. Avista will continue to provide copies of data requests, along with corresponding data responses, from all parties to the proceeding as they are
received.
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 05/15/2023 CASE NO: AVU-E-23-02 / AVU-G-23-02 WITNESS: N/A REQUESTER: IPUC RESPONDER: John Spanos TYPE: Production Request DEPARTMENT: Consultant
REQUEST NO.: Staff-003 TELEPHONE: [phone] REQUEST NO 3:
In the 2021 Depreciation Study, PART I, page 2, please provide all documentation used by the consultant in reference to: (1) the Company's practice and outlook relating to plant operation and retirement, and (2) the current practice in the electric and gas industry, including knowledge of service lives and net salvage estimates used for other electric and gas
companies.
RESPONSE: Please see the attached files for the requested information. Staff_PR_003 Attachment 1
includes notes taken during management meetings and the field visit to some of the
Company’s facilities. Staff_PR_003 Attachment 2 are the photos taken during the field visit during this study. Staff_PR_003 Attachments 3 and 4 are industry statistics of service lives and net salvage estimates for other electric and gas utility companies.
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 05/15/2023 CASE NO: AVU-E-23-02 / AVU-G-23-02 WITNESS: N/A REQUESTER: IPUC RESPONDER: John Spanos TYPE: Production Request DEPARTMENT: Consultant
REQUEST NO.: Staff-004 TELEPHONE: [phone] REQUEST NO 4:
Please provide all correspondence between Gannett Fleming and Avista as it pertains to the 2021 Depreciation Study. This includes all informational requests from Gannett Fleming to Avista and the responses from Avista to Gannett Fleming.
RESPONSE: Please see Staff_PR_004 Attachment 1, 2 & 3 which sets forth correspondence between Gannett Fleming and Avista for the 2021 Depreciation Study.
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 05/15/2023 CASE NO: AVU-E-23-02 / AVU-G-23-02 WITNESS: N/A REQUESTER: IPUC RESPONDER: John Spanos TYPE: Production Request DEPARTMENT: Consultant
REQUEST NO.: Staff-005 TELEPHONE: [phone] REQUEST NO 5:
For each FERC account studied in the 2021 Depreciation Study, please identify and explain all adjustments Gannett Fleming made to Avista's accounting data prior to conducting the service life and net salvage analyses presented in Parts VII, VIII, and IX of the depreciation study.
RESPONSE: Please see the attached file which sets forth any adjustments made by Gannett Fleming to Avista Accounting data which was discussed with Avista.
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 05/15/2023 CASE NO: AVU-E-23-02 / AVU-G-23-02 WITNESS: N/A REQUESTER: IPUC RESPONDER: John Spanos TYPE: Production Request DEPARTMENT: Consultant
REQUEST NO.: Staff-006 TELEPHONE: [phone] REQUEST NO 6:
For each FERC account studied in the 2021 Depreciation Study, please provide the results of any additional useful life analyses conducted. These analyses would be those conducted on original life tables that have experience and placement bands that differ from those presented in the depreciation study.

RESPONSE: There were no additional statistical life analysis with other experience and placement bands
conducted other than tables presented in Part VII of the depreciation study.
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 05/15/2023 CASE NO: AVU-E-23-02 / AVU-G-23-02 WITNESS: N/A REQUESTER: IPUC RESPONDER: John Spanos TYPE: Production Request DEPARTMENT: Consultant
REQUEST NO.: Staff-007 TELEPHONE: [phone] REQUEST NO 7:
Please provide copies of all Gannett Fleming field notes compiled for field trips referenced in PART III, pages 2 and 3 of the 2021 Gannett Fleming Depreciation Study.
RESPONSE: Please see the attached files to Staff_PR_003 for the requested information.