20230807Avista AR to Staff 1-8.pdf

AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 08/07/2023 CASE NO: AVU-E-23-08 WITNESS: Kaylene Schultz REQUESTER: IPUC RESPONDER: Janice Gibler TYPE: Audit Request DEPARTMENT: Internal Audit
REQUEST NO.: Staff - 001 TELEPHONE: [phone] REQUEST:
Please provide copies or access to workpapers, memorandums and reports that document any external and internal reviews performed on any PCA components for the PCA test year, July 2022 through June 2023 (power supply costs, including coal and gas burn expense, coal contracts, coal reports, coal inventories, wheeling expense, and PCA deferral accounting, as an example). Please
include within your response any documentation prepared for Sarbanes-Oxley (SOX), internal
audit, external audit, other jurisdictional inquiries, and communications (including but not limited to data requests, comments, memoranda, reports, and orders). RESPONSE:

There have been no internal audit reports issued that relate to the components of the PCA requested. The Colstrip Power Plan Audit for the two years-ended December 31, 2021 is currently in-process with completion of the audit estimated for December 31, 2023.
Attached is a listing of SOX controls in effect as of December 31, 2022 and includes whether they were tested by Internal Audit for operating effectiveness and the results (Staff_AR_001 Attachment A). Internal Audit will be available to video conference with Staff to walkthrough workpapers for the controls tested, if necessary. Also attached is a copy of the unqualified opinion on the
Company’s internal control over financial reporting from Deloitte & Touche LLP from the 2022
10K (Staff_AR_001 Attachment B).
RECEIVED
Monday, August 7, 2023 3:02:37 PM
IDAHO PUBLIC
UTILITIES COMMISSION
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 08/07/2023 CASE NO: AVU-E-23-08 WITNESS: Kaylene Schultz REQUESTER: IPUC RESPONDER: Janice Gibler TYPE: Audit Request DEPARTMENT: Internal Audit
REQUEST NO.: Staff - 002 TELEPHONE: [phone] REQUEST:
To the extent not previously provided, please provide a list of all Internal Audit department audits and reviews that were performed within the last three years or are planned to be performed associated with all components of the PCA: the activities of commercial and trading, coal expense, coal management, coal operations/plant management, joint and affiliate transactions, natural gas
expense, wheeling expense and revenues, PCA deferral accounting and so forth. Please include
within your response a contact name to obtain copies and discuss the audits. RESPONSE:

Below is a listing of audits and reviews performed within the last three years or are planned to be performed associated with the PCA: 2021-
Colstrip Fuel Supply 2020 Review (Year Ended 12/31/20) 2019-2020 Colstrip Units 3 and 4 Operations Audit (Two years ended 12/31/20) 2022 –
No audits performed
2023- 2021-2022 Colstrip Units 3 and 4 Operations Audit (audit is in-process as of 7/31/23)
Page 1 of 1
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 08/07/2023 CASE NO: AVU-E-23-08 WITNESS: K. Schultz/K. Holland REQUESTER: IPUC RESPONDER: C. Kettner/K. Meister TYPE: Audit Request DEPARTMENT: Resource Accounting
REQUEST NO.: Staff-003 TELEPHONE: [phone]
REQUEST: For the PCA year (July 2022 to June 2023), please provide the following:
a. A spreadsheet containing all entries by month pertaining to the following actual expenses:
i. 1. 555 Purchased Power
ii. 2. 447 Sale for Resale
iii. 3. 501 Thermal Fuel
iv. 4. 547 CT Fuel
v. 5. 456 Transmission Rev
vi. 6. 565 Transmission Exp
vii. 7. 557 Expenses
viii. 8. Actual REC Revenue;
b. Include within your response sufficient detail from which to select the transactions for testing such as the transaction description, vendor name, posting month, MWhs, sequence number, dollar
amount and account number where posted; and
c. Reconcile the data provided to the actual net power expense categories included within the
Company’s PCA Report and forthcoming PCA Application. RESPONSE:
Please see Avista's response Staff_AR_003C, which contains TRADE SECRET, PROPRIETARY or CONFIDENTIAL information and exempt from public view and is separately filed under IDAPA 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code. a.-c.
Please see Staff_AR_003 Confidential Attachment A for the requested information.
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 08/07/2023 CASE NO: AVU-E-23-08 WITNESS: Kevin Holland REQUESTER: IPUC RESPONDER: Ryan Finesilver TYPE: Audit Request DEPARTMENT: Energy Supply
REQUEST NO.: Staff - 004 TELEPHONE: [phone] REQUEST:
Please provide a copy of the Company's hourly generation logs by plant for the PCA year (July 2022 to June 2023). RESPONSE:

Please see Staff_AR_004 Attachment A to the Company’s response to Staff_AR_004.
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 08/07/2023 CASE NO: AVU-E-23-08 WITNESS: Kevin Holland REQUESTER: IPUC RESPONDER: Ryan Finesilver TYPE: Audit Request DEPARTMENT: Energy Supply
REQUEST NO.: Staff – 005 TELEPHONE: [phone] REQUEST:
Please provide a copy of all reports that discuss operational problems with any component of the Company's generation fleet during the PCA test year. RESPONSE:
Please see Avista's response Staff_AR_005C, which contains TRADE SECRET, PROPRIETARY or CONFIDENTIAL information and exempt from public view and is separately filed under IDAPA 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code.
The Company experienced forced outages exceeding 24 hours1 at Colstrip, Coyote Springs II, Kettle Falls, and Rathdrum during the PCA review period of July 2022 through June 2023. Please see the following attachments for further explanation:
All Facilities Excluding Colstrip and Lancaster2
Avista has provided two GADS spreadsheets, one for July 1, 2022 through December 31, 2022 (Staff_AR_005C Confidential Attachment A), and one for January 1, 2023 through June 30, 2023 (Staff_AR_005C Confidential Attachment B). These confidential spreadsheets detail all outages of any kind for all of Avista’s facilities except for Colstrip and Lancaster. For ease of reference, the
tab labeled “Summary” in each of these excel files shows those facilities that had forced outages
(Event Type codes U1, U2, or U3) in excess of 24 hours during the PCA review period. Colstrip Staff_AR_005C Confidential Attachment C contains the Owner Summary Event log for July 2022
– June 2023 for Colstrip. The confidential attachment provides a brief summary for the reason for the various outages. The total outage hours represent approximately 5.2% of the total period hours.

1 The Company is defining “operational problems” as forced outages exceeding 24 hours. 2 There were no forced outages exceeding 24 hours at Lancaster during the PCA review period (July 1, 2022 – June 30,
2023).
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 08/07/2023 CASE NO: AVU-E-23-08 WITNESS: Kevin Holland REQUESTER: IPUC RESPONDER: Ryan Finesilver TYPE: Audit Request DEPARTMENT: Energy Supply
REQUEST NO.: Staff - 006 TELEPHONE: [phone] REQUEST:
Please provide the supporting documentation as well as a narrative on how the Idaho actual sales were calculated, along with any safeguards or internal controls to ensure its accuracy.
RESPONSE:
In the case of Idaho actual sales utilized in the calculation of the Idaho PCA amortization,
Resource Accounting runs a report out of Cognos which provides the total volume and dollars associated with the PCA (Schedule 66) at the revenue level. A calculation is made which multiplies the PCA revenue times the revenue conversion factor in order to convert it to the expense level for monthly journal recording. These reports are within the journals provided as part
of the monthly report. For ease of reference, they were also provided in the Annual PCA Filing on
July 31, 2023. These journals are verified by the Resource Accounting Manager and are subject to internal and external audit controls.
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 08/07/2023 CASE NO: AVU-E-23-08 WITNESS: Kevin Holland REQUESTER: IPUC RESPONDER: Megan Thilo TYPE: Audit Request DEPARTMENT: Risk Management
REQUEST NO.: Staff – 007 TELEPHONE: [phone] REQUEST:
Please provide the Company’s most recent risk management policy. Please include within your response any changes made since January 1, 2022 to date and the underlying reasons for those changes.
RESPONSE:
Please see Avista's response Staff_AR_007C, which contains TRADE SECRET, PROPRIETARY or CONFIDENTIAL information and exempt from public view and is separately filed under IDAPA 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code.

AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 08/07/2023 CASE NO: AVU-E-23-08 WITNESS: Kevin Holland REQUESTER: IPUC RESPONDER: Megan Thilo TYPE: Audit Request DEPARTMENT: Risk Management
REQUEST NO.: Staff - 008 TELEPHONE: [phone] REQUEST:
Please identify any changes to the risk management policy that are under consideration or on the horizon. Please include within your response the underlying reasons for those changes. RESPONSE:

We are continually monitoring and evaluating the Risk Management Policy and associated hedging models. The Risk Management Committee has not approved any recent or future changes to the Risk Management Policy.
Please see the Company’s response to Staff_AR_007C.