20230905AVU to Staff 1-5.pdf

AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 09/05/2023 CASE NO: AVU-E-23-09 WITNESS: REQUESTER: IPUC RESPONDER: Joel Anderson TYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff-001 TELEPHONE: [phone] REQUEST:
Please provide all internal audit reports and SOX reports detailing the FCA revenue determination during the deferral period, July 1, 2022, through June 30, 2023. Please include any safeguards or internal controls used to ensure that the revenue report is accurate.
RESPONSE: The SOX Internal Control below includes reviewing the monthly decoupling journal (includes FCA) and support for accuracy:
Control ID Control Name Control Description
C.RATES.07 Decoupling Deferral
Review responsible for the decoupling mechanism and the
Resource Accounting Manager review decoupling
calculations and the journal entry to record decoupling,
evaluating the accuracy and completeness of calculations
and tracing revenue inputs to source data. In addition,
accumulated decoupling deferral balances are compared
to independent schedules of decoupling limits to ensure
that recorded deferred revenue does not exceed the
amount expected to be collected within 24 months. Any
amounts in excess of these limits are not recognized for
GAAP financial reporting purposes until expected to be
Additionally, The Resource Accounting Manager completes an IPE checklist in review of the
journal entry, which documents procedures performed for the Decoupling Deferral Revenue
Query as well as analysis spreadsheets.
RECEIVED
Tuesday, September 5, 2023 4:26:41 PM
IDAHO PUBLIC
UTILITIES COMMISSION
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 09/05/2023 CASE NO: AVU-E-23-09 WITNESS: REQUESTER: IPUC RESPONDER: Joel Anderson TYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff-002 TELEPHONE: [phone] REQUEST:
Please provide the number of new and existing customers by class per month for the July 1, 2022, through June 30, 2023, deferral period. RESPONSE:

Please see Staff_DR_002 Attachment A for the requested information. This attachment was also included in the workpapers of the original FCA filing. In Attachment A, on each month’s “base rate revenue” tab, there is existing customer (lines 3 through 15) and new customer (lines 47 through 54) data by rate schedule.

AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 09/05/2023 CASE NO: AVU-E-23-09 WITNESS: REQUESTER: IPUC RESPONDER: Joel Anderson TYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff-003 TELEPHONE: [phone] REQUEST:
Please provide supporting documentation for the actual number of kilowatt hours sold for each month in the July 1, 2022, through June 30, 2023, deferral period. RESPONSE:

Please see Staff_DR_002 Attachment A for the requested information. This attachment was also included in the workpapers of the original FCA filing. In Staff_PR_002 Attachment A, on each month’s “base rate revenue” tab, there is existing customer usage (lines 3 through 15) and new customer usage (lines 47 through 54) data by rate schedule.

AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 09/05/2023 CASE NO: AVU-E-23-09 WITNESS: REQUESTER: IPUC RESPONDER: Joel Anderson TYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff-004 TELEPHONE: [phone] REQUEST:
Please provide the Company's monthly FCA deferral balance reports from July 1, 2022, through June 30, 2023, showing the monthly calculation of the current deferral and any amortization of the prior year's deferral.
RESPONSE: Please see Staff_PR_002 Attachment A. The “Deferral Calc” tab shows the calculation of the deferral for 12 months ended June 30, 2023 by month. Please also see Staff_PR_004 Attachment A. The “Prior Year Amortization” tab in this attachment shows the amortization for the previous
year deferral through June 2023 and estimated monthly amortizations through September 2023.
AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 09/05/2023 CASE NO: AVU-E-23-09 WITNESS: REQUESTER: IPUC RESPONDER: Joel Anderson TYPE: Production Request DEPARTMENT: Regulatory Affairs
REQUEST NO.: Staff-005 TELEPHONE: [phone] REQUEST:
The Company asserts that the primary driver for this FCA was a "colder than normal 12 months ended June 30, 2023, fluctuating with offsetting impacts from heating and cooling throughout the period" on use-per-customer and FCA Revenue for the residential and non-residential groups. Application at 5. Please provide supporting documentation and calculations, including Excel
workbooks with formulas intact and enabled, supporting this assertion.
RESPONSE: Please see Staff_PR_002 Attachment A. The “Deferral Tab” in this workbook shows what the
actual revenue-per-customer (line 8) is for residential customers compared to the authorized
revenue-per-customer (line 17). On average, actual revenue-per-customer was higher than what was authorized, specifically during the winter months of December through February. This higher use was presumably caused by a colder than normal winter.