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HomeMy WebLinkAbout20090212IPC to Staff 1-30.pdfLISA D. NORDSTROM Senior Attorney ~IDA~POR~ An IDACORP Company February 11, 2009 VIA HAND DELIVERY Jean D. Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street P.O. Box 83720 Boise, Idaho 83720-0074 Re: Case No. IPC-E-08-22 RuleH Dear Ms. Jewell: Enclosed for filing please find an original and three (3) copies of Idaho Power's Response to the Commission Staffs First Production Request to Idaho Power Company in the above matter. i would appreciate it if you would return a stamped copy of this letter for Idaho Power's file in the enclosed stamped, self-addressed envelope. Very truly yours, ~:v d. '1Pt~ Lisa D. Nordstrom LDN:csb Enclosures P.O. Box 70 (83707) 1221 W. Idaho St. Boise, 10 83702 LISA D. NORDSTROM, ISB No. 5733 BARTON L. KLINE, ISB No. 1526 Idaho Power Company P.O. Box 70 Boise, Idaho 83707 Tel: 208-388-5825 Fax: 208-338-6936 Inordstrom~idahopower.com bkline~idahopower.com QEC'¡:I'\n:I",. ".. .. '," L-.. " "",",' ~,..,.f 2009 FEB I I PM q: 52 IDAHO ~:~;¡: UTIUi!ES CO:,; Attorneys for Idaho Power Company Street Address for Express Mail: 1221 West Idaho Street Boise, Idaho 83702 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) OF IDAHO POWER COMPANY FOR ) CASE NO. IPC-E-08-22 AUTHORITY TO MODIFY ITS RULE H ) TARIFF RELATED TO NEW SERVICE ) IDAHO POWER COMPANY'S ATTACHMENTS AND DISTRIBUTION ) RESPONSE TO THE COMMISSION LINE INSTALLATIONS OR ALTERATIONS ) STAFF'S FIRST PRODUCTION ) REQUEST TO IDAHO POWER ) COMPANY ) COMES NOW, Idaho Power Company ("Idaho Powet' or "the Company"), and in response to the First Production Request of the Commission Staff to Idaho Power Company dated January 21,2009, herewith submits the. following information: IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 1 REQUEST NO.1: Please provide a table of current costs charged by Idaho Power for overhead and pad-mounted transformers for all sizes and types typically used for Schedule 1, 7, 9 and 24 customers. For each size and type of transformer, list the number installed in 2007 and 2008. RESPONSE TO REQUEST NO.1: The information requested is both time and labor intensive to compile. As previously discussed with Staff, Idaho Power needs additional time to complete its response and intends to produce the information requested by Friday, February 13, 2009. The response to this Request was prepared by Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 2 REQUEST NO.2: Please provide a summary of service attachments made for Schedule 1 customers for each of the years 2006 - 2008. In the summary, include at least the following: a. Total number of new residential line extensions; b. Average actual cost for all service extensions; c. Number of underground and overhead service cable installations; d. Number of installations in which conduit was installed; e. Number of transformers installed, whether pad mounted or overhead, and their size rating; f. Average number of customers per transformer; g. Number of single and three phase installations; h. Average length of service cable; i. Number of meters by meter type and cost; and j. Average cost of other incidental equipment. RESPONSE TO REQUEST NO.2: The information requested is both time and labor intensive to compile. As previously discussed with Staff, Idaho Power needs additional time to complete its response and intends to produce the information requested by Friday, February 13,2009. The response to this Request was prepared by Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 3 REQUEST NO.3: Please provide a list of service attachments made for Schedule 7, 9, and 24 customers for 2008. For each service attachment, include at least the following: a. Actual cost of the service attachment; b. Connected load in kW; c. Whether service cable was underground or overhead; d. Whether conduit was installed; e. Whether transformer was installed, number and rating of transformers; f. If transformer installed, was it overhead or pad mounted; g. Whether single or three phase; h. Length of service cable; i. Meter type and cost; and j. Cost of other incidental equipment. RESPONSE TO REQUEST NO.3: The information requested is both time and labor intensive to compile. As previously discussed with Staff, Idaho Power needs additional time to complete its response and intends to produce the information requested by Friday, February 13, 2009. The response to this Request was prepared by Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 4 REQUEST NO.. 4: Please provide an analysis for the cost of the Company's engineering fee. RESPONSE TO REQUEST NO.4: The Company's $58.31 engineering fee was determined based on the following: The current wage rate for a Senior Distribution Designer is $35.61 per hour, with benefits of $17.09 per hour based on 2006 actual benefit expenditures, plus general overhead of $5.61 per hour for equipment based on current accounting guidelines. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION . STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 5 REQUEST NO.5: Please provide an analysis for the cost of temporary service attachment charge for underground and overhead, and for each service: a. How the Company determines the appropriate size of the crew for each type of service attachment; b. How the Company determines the amount of trip time; c. How the Company calculated the labor cost and what is included in that cost for each type of service attachment; d. If applicable, please provide the cost of each required material for each type of service attachment; e. A breakdown of costs showing how much of that price is travel cost, labor cost, material cost, or any other costs that contribute to the final proposed cost. RESPONSE TO REQUEST NO.5: Idaho Powets analysis on construction costs is based on travel time, equipment, labor, and materials. The Company construction costs are determined by the standard construction staffng level, the equipment that is required to complete the work, the time it takes to safely finish a project, and the travel time to the construction destination. Currently, Idaho Power uses a computer softare system called "Asset Suite" to track material expenses and determine construction costs. a. The crew size for both overhead and underground temporary service is 1 person, determined by the Company's standard construction staffing leveL. b. Travel time is based on average travel time, which is 0.5 hours. In urban areas, traffc constraints may cause delays greater than 0.5 hours, and in rural areas, . IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 6 remote location may require travel time greater than 0.5 hours, but, on average, travel time to jobs is approximately 0.5 hours. c. Labor cost is a combination of travel time and "wrench time." Wrench time includes time spent doing the work and vehicles used. Wrench time has been calculated using time and motion studies that have been integrated into the work order construction and inventory system. d. Underground services have no materials associated with these costs, it is labor only. Overhead services include 100 feet of #2 triplex aluminum conductor, 2 dead end wedge clamps, and assorted nuts, bolts, and washers. e. The underground service cost includes two components: (1) travel time of $26.90 and (2) wrench time of $14.22. For an overhead service, the cost includes three components: (1) travel time of $26.90, (2) wrench time of $54.10, and (3) $100.95 in materials. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 7 REQUEST NO.6: Please provide an analysis for the cost of temporary return trip charge and: a. How the Company determines the appropriate size of the crew for each type of service attachment; b. How the Company determines the amount of trip time; c. How the Company calculated the labor cost and what is included in that cost for each type of service attachment; d. If applicable, please provide the cost of each required material for each type of service attachment; e. A breakdown of costs showing how much of that price is travel cost, labor cost, material cost, or any other costs that contribute to the final proposed cost. RESPONSE TO REQUEST NO.6: Idaho Powets analysis on construction costs is based on travel time, equipment, labor, and materials. The Company construction costs are determined by the standard construction staffng level, the equipment that is required to complete the work, the time it takes to safely finish a project, and the travel time to the construction destination. Currently, Idaho Power uses a computer softare system called "Asset Suite" to track material expenses and determine construction costs. a. The crew size for an overhead or underground temporary return trip charge is 1 person. The return trip charge is determined by the Company's standard construction staffng leveL. b. Travel time is based on average travel time, which is 0.5 hours. In urban areas, traffc constraints may cause delays greater than 0.5 hours, and in rural areas, IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 8 remote location may require travel time greater than 0.5 hours, but, on average, travel time to jobs is approximately 0.5 hours. c. Labor cost is a combination of travel time and "wrench time." Wrench time includes time spent doing the work and vehicles used. Wrench time has been calculated using time and motion studies that have been integrated into the work order construction and inventory system. d. Return trip charge is labor only. e. No materials are associated with return trip charges, they include labor only. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 9 REQUEST NO.7: Please provide an analysis for the cost of the underground return trip charge and: a. How the Company determines the appropriate size of the crew for each type of service attachment; b. How the Company determines the amount of trip time; c. How the Company calculated the labor cost and what is included in that cost for each type of service attachment; d. If applicable, please provide the cost of each required material for each type of service attachment; e. A breakdown of costs showing how much of that price is travel cost, labor cost, material cost, or any other costs that contribute to the final proposed cost. RESPONSE TO REQUEST NO.7: Idaho Powets analysis on construction costs is based on travel time, equipment, labor, and materials. The Company construction costs are determined by the standard construction staffng level, the equipment that is required to complete the work, the time it takes to safely finish a project, and the travel time to the construction destination. Currently, Idaho Power uses a computer softare system called "Asset Suite" to track material expenses and determine construction costs. a. The crew size for an underground return trip charge is 2 people, determined by the Company's standard construction staffng leveL. b. Travel time is based on average travel time, which is 0.5 hours. In urban areas, traffc constraints may cause delays greater than 0.5 hours, and in rural areas, IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 10 remote location may require travel time greater than 0.5 hours, but, on average, travel time to jobs is approximately 0.5 hours. c. Labor cost is a combination of travel time and "wrench time." Wrench time includes time spent doing the work and vehicles used. Wrench time has been calculated using time and motion studies that have been integrated into our work order construction and inventory system. d. Underground return trip charges are for labor only. e. No materials are associated with underground return trip charges, they include labor only. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 11 REQUEST NO.8: Please provide an analysis for the cost of the underground service attachment charge's base charge from underground, overhead including 2" riser, and overhead including 3" riser, and for each service: a. How the Company determines the appropriate size of the crew for each type of service attachment; b. How the Company determines the amount of trip time; c. How the Company calculated the labor cost and what is included in that cost for each type of service attachment; d. If applicable, please provide the cost of each required material for each type of service attachment; e. A breakdown of costs showing how much of that price is travel cost, labor cost, material cost, or any other costs that contribute to the final proposed cost. RESPONSE TO REQUEST NO.8: Idaho Powets analysis on construction costs is based on travel time, equipment, labor, and materials. The Company construction costs are determined by the standard construction staffng level, the equipment that is required to complete the work, the time it takes to safely finish a project, and the travel time to the construction destination. Currently, Idaho Power uses a computer softare system called "Asset Suite" to track material expenses and determine construction costs. a. The crew size for an underground service is a 2 person crew, determined by the Company's standard construction staffng leveL. b. Travel time is based on average travel time, which is 0.5 hours. In urban areas, traffc constraints may cause delays greater than 0.5 hours, and in rural areas, IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 12 remote location may require travel time greater than 0.5 hours, but, on average, travel time between jobs is approximately 0.5 hours. c. Labor cost is a combination of travel time and "wrench time." Wrench time includes time spent doing the work and vehicles used. Wrench time has been calculated using time and motion studies that have been integrated into our work order construction and inventory system. d. Underground services are connections only, with no materials. Overhead materials are as follows: 2" pole riser material list includes: 30 feet of 1/0 underground cable, 2" pvc conduit, 2" metal conduit, and a number of nuts, bolts, brackets, and washers. 3" pole risér material list includes: 30 feet of 4/0 underground cable, 3" pvc conduit, 3" metal conduit, and a number of nuts, bolts, brackets, and washers. e.Underground services Labor 2" pole riser material list includes: Travel and vehicles Materials Labor Total 3" pole riser material list includes: Travel and vehicles Materials Labor Total $ 41.00 $ 53.80 $211.49 $141.71 $407.00 $ 53.80 $354.50 $149.70 $558.00 The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 13 REQUEST NO.9: Please provide an analysis for the cost of the distance charge (per foot) for Company installed facilities with 1/0 underground cable, 4/0 underground cable, and 350 underground cable, and for each service: a. How the Company determines the appropriate size of the crew for each type of service attachment; b. How the Company determines the amount of trip time; c. How the Company calculated the labor cost and what is included in that cost for each type of service attachment; d. If applicable, please provide the cost of each required material for each type of service attachment; e. A breakdown of costs showing how much of that price is travel cost, labor cost, material cost, or any other costs that contribute to the final proposed cost. RESPONSE TO REQUEST NO.9: Idaho Powets analysis on construction costs is based on travel time, equipment, labor, and materials. The Company construction costs are determined by the standard construction staffng level, the equipment that is required to complete the work, the time it takes to safely finish a project, and the travel time to the construction destination. Currently, Idaho Power uses a computer softare system called "Asset Suite" to track material expenses and determine construction costs. a. The crew size for an underground service is a 2 person crew, determined by the Company's standard construction staffng leveL. b. Travel time is based on average travel time, which is 0.5 hours. In urban areas, traffic constraints may cause delays greater than 0.5 hours, and in rural areas, IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 14 remote location may require travel time greater than 0.5 hours, but, on average, travel time to jobs is approximately 0.5 hours. c. Labor cost is a combination of travel time and "wrench time." Wrench time includes time spent doing the work and vehicles used. Wrench time has been calculated using time and motion studies that have been integrated into the work order construction and inventory system. d. Underground service cable charges are for material only, based on 100 feet, and are as follows: e.1/0 service includes: 4/0 service includes: 350 service includes: 1/0 Wire 4/0 Wire 350 Wire Travel and vehicles Materials Labor & Equipment Overhead Service Differential Total Travel and vehicles Materials Labor & Equipment Overhead Service Differential Total Travel and vehicles Materials Labor & Equipment Overhead Service Differential Total $173.26 $229.91 $415.70 $134.50 $173.26 $568.37 -:$155.00:: $721.13 $134.50 $229.91 $569.65 -:$155.00:: $799.06 $134.50 $415.70 $603.95 -:$155.00:: $999.15 The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY -15 REQUEST NO. 10: Please provide an analysis for the cost of the distance charge (per foot) for customer provided trench and conduit with 1/0 underground cable, 4/0 underground cable, and 350 underground cable, and for each service: a. How the Company determines the appropriate size of the crew for each type of service attachment; b. How the Company determines the amount of trip time; c. How the Company calculated the labor cost and what is included in that cost for each type of service attachment; d. If applicable, please provide the cost of each required material for each type of service attachment; e. A breakdown of costs showing how much of that price is travel cost, labor cost, material cost, or any other costs that contribute to the final proposed cost. RESPONSE TO REQUEST NO. 10: Idaho Powets analysis on construction costs is based on travel time, equipment, labor, and materials. The Company construction costs are determined by the standard construction staffng level, the equipment that is required to complete the work, the time it takes to safely finish a project, and the travel time to the construction destination. Currently, Idaho Power uses a computer softare system called "Asset Suite" to track material expenses and determine construction costs. a. The crew size for an underground service is a 2 person crew, determined by the Company's standard construction staffng leveL. b. Travel time is based on average travel time, which is 0.5 hours. In urban areas, traffc constraints may cause delays greater than 0.5 hours, and in rural areas, IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 16 remote location may require travel time greater than 0.5 hours, but, on average, travel time to jobs is approximately 0.5 hours. c. Labor cost is a combination of travel time and "wrench time." Wrench time includes time spent doing the work and vehicles used. Wrench time has been calculated using time and motion studies that have been integrated into the work order construction and inventory system. d. Underground service cable charges are for material only, based on 100 feet, and are as follows: e.1/0 service includes: 4/0 service includes: 350 service includes: 1/0 Wire 4/0 Wire 350 Wire Travel and vehicles Materials Labor & Equipment Overhead Service Differential Total Travel and vehicles Materials Labor & Equipment Overhead Service Differential Total Travel and vehicles Materials Labor & Equipment Overhead Service Differential Total $ 94.97 $151.58 $262.56 $ 53.80 $ 94.97 $217.79 -:$155.00:: $211.56 $ 53.80 $151.58 $215.23 -:$155.00:: $265.61 $ 53.80 $262.56 $245.64 -:$155.00:: $407.00 The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 17 RE.QUEST NO. 11: Please provide data showing the number of vested interest refunds made during years 1, 2, 3, 4, and 5 for 2007 and 2008. RESPONSE TO REQUEST NO. 11: The table below outlines the number of vested interest refunds made during years 1, 2, 3, 4, and 5 for 2007 and 2008. Vested Interest Refunds 2007 2008 The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 18 REQUEST NO. 12: Please describe what is meant by "administrative burden" as stated on p. 9, lines 20 - 21 of the testimony of Scott Sparks. RESPONSE TO REQUEST NO. 12: The term "administrative burden" was used to describe the Company's additional administrative labor and computer system requirements for tracking vested interest refunds. In examining historical records, the Company determined that vested interest refunds provided in the fifth year are typically very small in terms of number of refunds provided and dollar amounts eligible for refund. This modification was proposed in an attempt to reduce the time and administrative labor costs associated with tracking refunds in the fifth year of recovery. The response to this Request was prepared by Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 19 REQUEST NO. 13: Please explain the process used by Idaho Power to qualify construction contractors who perform line extension construction work for the Company. In addition, please provide a list of contractors used by Idaho Power to perform line extension work. RESPONSE TO REQUEST NO. 13: Idaho Power requires a contractor to complete the attached Contractor Qualification Assessment LGL 037. Upon receiving the completed assessment, Idaho Power wil evaluate the information supplied on the form, call references, research the contractor on the web, and perform a credit evaluation, if there is published data available. Idaho Power is very familiar with most of the contractors that perform line extension construction work in its service area. Contractors that perform line extensions for Idaho Power are 4T Construction, H&H Utility Contractors, Track Utilities, Eureka Construction, KV Construction, and Western Line Builders. Aslett Electric and DAVCO Services have provided Idaho Power line extension work for the last several years; however, both companies went out of business in January of this year. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 20 REQUEST NO. 14: For line extension construction work performed by contractors, please explain any competitive processes employed by the Company to insure that the costs to construct line extensions is minimized. RESPONSE TO REQUEST NO. 14: Idaho Power has developed a process to allow it to competitively bid line extension contracts. Idaho Power uses two types of contracts for line extensions. The first contract is a Master Construction Agreement for the installation of overhead and underground distribution facilities. These contracts are awarded for each Operations Center. Typically separate contractors have the overhead and underground portion of the work. To competitively bid these contracts, Idaho Power has developed bid units for the labor to install all electrical distribution equipment by region. Idaho Power prefers to have at least six qualified bidders to bid on each contract and these bids are evaluated based on estimated quantities of the work for each bid unit to develop a total contract cost. The contracts are then awarded to the lowest cost bidder. Due to the size and complexity of the contracts, the term is set for either three or five years. The second contract is the Joint Trench contract which is used for underground line extensions that have more than one utility in the trench. The joint trench contractors dig and backfll trenches, place conduits and transformer pads, and other non-electrical equipment. Idaho Power works jointly with Intermountain Gas to qualify contractors and develop bid unit costs by region. The contracts are competitively bid and awarded similar to the above listed contracts, the only difference being that in areas where the work is significant enough to warrant two contractors, the two lowest bidders wil be selected. Once selected, Idaho Power and Intermountain Gas work jointly to IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 21 determine a cost for each trench unit, between the lowest cost bid and the second lowest cost bid for the unit. Both contractors have to accept this pricing before the contracts are fully executed. Setting these costs allows Idaho Power and Intermountain Gas to compensate both contractors the same rates for the shared trench portion of the work. The terms of these contracts are three years. Idaho Power can negotiate extensions to these contracts based on current economic conditions. Extensions to the contracts can only be negotiated if the contracts have previously been competitively bid, and the contractor accepts no increase, or an increase equal to or less than the Consumer Pricing Index ("CPI") for the duration of the contract. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 22 REQUEST NO. 15: Please explain how Idaho Power determines whether a contractor or its own construction crews wil be used for specific jobs. What percentage of construction jobs are completed by contractors in typical years? RESPONSE TO REQUEST NO. 15: Idaho Power determines whether a contractor or its own construction crews wil be used for specific jobs by first assigning Idaho Power crews. Contractors are only used for construction jobs in which Idaho Power crews cannot meet predetermined startcompletion deadlines. The percentage of construction jobs completed by contractors in 2007 was 40.6 percent. In 2008, the percentage completed by contractors was 34.5 percent. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline,. Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 23 REQUEST NO. 16: In instances where a contractor constructs a line extension, are materials procured and provided by the contractor or by Idaho Power? Please explain. RESPONSE TO REQUEST NO. 16: When a contractor constructs a line extension, most materials are procured and provided by Idaho Power. The exception pertains to underground conduit, concrete enclosures, fiberglass bases, concrete pads, fiberglass splice boxes, and concrete vaults, which contractors can procure and provide through Idaho Power vendors at Idaho Power pricing levels. In other words, contractors pay and charge back to Idaho Power at the same pricing levels incurred had Idaho Power purchased and provided the same materials. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 24 REQUEST NO. 17: In instances where a contractor constructs a line extension, are the overhead rates charged by Idaho Power different than if the work was completed by Idaho Power's own crews? Please explain. RESPONSE TO REQUEST NO. 17: No, the Company charges customers the same regardless of whether Idaho Power crews or contract crews complete a line extension. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 25 REQUEST NO. 18: Please explain any criteria or circumstances under which Idaho Power solicits competitive bids for individual line extension jobs. Similarly, explain any criteria or circumstances under which Idaho Power does not solicit competitive bids for individual line extension jobs. Are there circumstances in which the same contractor is retained to perform multiple jobs without bidding on each job individually? RESPONSE TO REQUEST NO. 18: Except when Idaho Power uses its own crews, the Company solicits competitive bids for line extensions projects. Idaho Power uses two types of contracts for line extension work as described in its Response to Request No. 13, both of which are competitively bid. If there is a non-typical line extension and the estimated hours for the project exceed 2000 hours, Idaho Power would competitively bid the individual project. The only exception of soliciting competitive bids would be for customer driven work that falls outside the scope or time requirements of the two line extension contracts. Due to time constraints by the customer, some portions of the work may be negotiated with the contractor. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 26 REQUEST NO. 19: Are customers requesting new line extensions biled an amount based on a pre-construction estimate or based on a post-construction tabulation of the actual costs incurred? If customers are biled based on estimates and there is a difference between the estimate and the cost actually incurred, how is the difference reconciled, either for each customer individually or for all customers collectively? Explain any circumstances in which costs charged to the customer are adjusted based on the actual costs incurred by the Company. RESPONSE TO REQUEST NO. 19: Customers requesting new line extensions are biled on a pre-construction estimate and not post-construction actual costs. Differences between estimates and costs actually incurred are not reconciled or trued- up between the customer and Idaho Power. Costs identified in pre-construction designs as "unusual conditions" are the only costs that are reconciled and trued-up between the customer and Idaho Power. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 27 REQUEST NO. 20: Please explain any competitive process used by Idaho Power for purchasing major materials such as poles, transformers and conductor used in line extension construction. RESPONSE TO REQUEST NO. 20: Idaho Power Company uses a strategic sourcing methodology for the procurement of major materials, including poles, transformers, conductor, meters, hardware, and other related materials to ensure value to the Company and customers, using a total cost of ownership ("TCO") model approach. This process is a structured, fact-driven, collaborative methodology that enables effective decision making regarding the sourcing of goods and services. Please refer to the attached document to identify the steps included in strategic sourcing, as well as the total cost of ownership modeL. When purchasing other individual major equipment or specialized equipment, a competitive process is stil used. This includes identifying a sourcing strategy,supplier selection, and contract implementation. The response to this Request was prepared by Deb Kunkler, Procurement Manager, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 28 REQUEST NO. 21: Please discuss how Idaho Power can reassure customers that the costs charged to customers for line extensions are fair and reasonable. Discuss any competitive procurement practices, bidding practices, contractor selection methods, or other practices and processes that are employed by the Company. RESPONSE TO REQUEST NO. 21: Please refer to Response to Request No. 20 to answer the question relating to competitive procurement and bidding practices. Please refer to Responses to Requests Nos. 13 and 14 for contractor selection and competitive bidding practices for line extension construction work. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 29 REQUEST NO. 22: If lot refunds in subdivisions are discontinued, please explain whether Idaho Power believes it wil be at risk for recovering the cost of facilities installed in the subdivision if the subdivision does not fully build out. RESPONSE TO REQUEST NO. 22: No. Lot refunds represent additions to rate base at the time of the refund. If refunds are eliminated, rate base no longer grows by refunded amounts. Instead, a customer's contribution in aid of construction remains an offset to rate base. If lot refunds are discontinued, the Company wil not be required to refund any portion of installation costs related to subdivision work orders. In turn, CIACs paid up front on work orders for facilities installed within subdivisions wil not be offset by the costs of providing lot refunds. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 30 REQUEST NO. 23: Please provide a cost breakdown of $1,780 Standard Terminal Facilities allowance for single phase line installations and service attachments showing how much of that cost is the transformer, service conductor, etc. RESPONSE TO REQUEST NO. 23: The single phase standard terminal facilities allowance is based on three components: (1) travel time and vehicle costs for a crew of five, (2) materials costs, and (3) labor and equipment costs. The breakdown of this allowance is as follows: Travel and Vehicle cost Material Cost Labor and Equipment Total $ 134.50 $1,435.39 $ 209.61 $1,779.50 The material components include: Hot Line Clap - connect to the main line Pole mount bracket for the switch Switch (Non Load Break) 25 KVA Transformer Transformerwiring and connectors 125 feet of #2 triplex service wire Transformer ground rod Power Meter Total Material Cost $ 16.78 $ 37.71 $ 89.95 $1,096.69 $ 46.80 $ 100.95 $ 22.23 $ 24.28 $1,435.39 The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 31 REQUEST NO. 24: Similarly, please provide a cost breakdown of $3,803 Standard Terminal Facilities allowance for three phase installations and service attachments showing how much of that cost is the transformer, service conductor, etc. RESPONSE TO REQUEST NO. 24: The three phase standard terminal facilities allowance is based on three components: (1) travel time and vehicle costs for a crew of five, (2) materials costs, and (3) labor and equipment costs. The breakdown of this allowance is as follows: Travel and Vehièle cost Material Cost Labor and Equipment Total $ 269.00 $ 2,540.90 $ 993.48 $ 3,803.38 The material components include: Hot Line Clap - connect to the main line Wood cross arm for switch Lighting arresters Switch (Non Load Break) Transformer mounting Wing 25 KVA Transformer Transformer wiring and connectors 125 feet of #2 triplex service wire Transformer ground rod Power Meter Total Material Cost $ 50.34 $ 134.17 $ 142.65 $ 149.46 $ 233.94 $ 1,376.88 $ 98.76 $ 146.03 $ 22.23 $ 186.44 $2,540.90 The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 32 REQUEST NO. 25: In the past, Idaho Power has used "time and motion" studies as the basis for establishing some of the costs used in preparing line extension estimates. Does Idaho Power stil use time and motion studies? If so, when was the last study prepared that the Company is using as a basis for cost estimates? Please provide a copy of pertinent sections of the study currently being used by Idaho Power. RESPONSE TO REQUEST NO. 25: Idaho Power continues to use "time and motion" studies to help determine costs for preparing line extension estimates. As new material is introduced, labor hours are determined for the installation, removal, or transfer of this material onto the system. The costs of all materials are constantly being updated as part of the material purchasing process, with these updated costs being reflected in the tools used to design projects. These costs are updated monthly by Compatible Unit Codes. The Cost Estimate (Labor Hours) lists the updated material costs as well as labor associated with each code. The Dictionary provides a description of each code. These documents contain confidential pricing information and are available upon request at Idaho Power Company's corporate offces. Please contact Doug Jones at 388-2615 or Camila Victoria at 388-5821 to arrange a time to review the requested materiaL. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 33 REQUEST NO. 26: Please provide a detailed explanation of the method used to determine the 15.75 percent charge for general overheads. Please provide any formulas, allocation factors and expenses used to calculate this percent. For expenses, please provide the associated FERC account numbers. RESPONSE TO REQUEST NO. 26: General overheads are costs that are incurred in direct support of the Company's construction process, but would be very diffcult to directly associate to a particular construction job. These costs are accumulated and allocated back to individual construction jobs based on a cost allocation methodology. It is Idaho Power Company's policy, per 18 CFR Part 101 Electric Plant Instructions (4) (2007), to apply overheads to construction work orders. Each cost center that is involved in the construction process has a separate overhead work order that employees charge to for general support tasks that benefit both operations and the construction process. These overhead work orders are allocated between O&M and capital based on yearly studies of the actual split between direct O&M and direct capital work performed by the cost center. Through the use of these overhead work orders, the Company determines the amount each cost center has contributed to overheads. The actual overheads are compared to budgeted overheads on a monthly basis by leaders to assure that only reasonable and prudent costs are charged to the accounts. The budgeted overheads are part of our annual corporate budget process and have the same scrutiny as O&M and capitaL. To determine the overhead rate, the Company accumulates the budgeted overheads and groups them by contributing functional area and divides them by the budgeted construction projects, during the same period by work order type to create the IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 34 overhead rate. The Company has a separate overhead rate for Co-Generation, Stations, Transmission Lines, and Distribution Lines. The Distribution Line rate applies to the Rule H work orders. The rate is monitored monthly to assure that actual overheads and project costs match budgeted costs and adjustments made to the rate if needed. To calculate the existing rates, Idaho Power took Delivery Budgeted Construction Overheads for June through December 2008 divided by Projected Capital Spending by categqry (Co-Generation, Stations, Transmission Lines, and Distribution Lines) for June through December 2008. The result was a projected overhead rate for each category. Considering those rates, and adding or subtracting any under/over-applied balance, new overhead rates were determined for the remainder of 2008. The 15.75 percent is the calculated rate for the Distribution Lines Capital Category. An example of the calculation for the 2009 overhead rate is as follows: 2009 Budget Distribution Capital $73,327,298 2009 Budget Distribution Overheads $11 ,484,220 Calculated Overhead Rate (Overheads 15.75% (rounded from .1566)divided by Capital) All overhead charges are initially charged to FERC account 107 and move to FERC account 101 when the work order they have been applied to is completed. Overhead charges are applied to the work order monthly as a percentage of actual charges to the work order. The response to this Request was prepared by Tami White, Finance Team Leader, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 35 REQUEST NO. 27: Please explain how general overheads are currently recovered. RESPONSE TO REQUEST NO. 27: It is Idaho Power Company's policy, per 18 CFR Part 101 Electric Plant Instructions (4) (2007), to apply overheads to construction work orders. Overhead costs are applied back to actual construction jobs based on the methodology described in Response to Request No. 26. When capital work orders are completed, the overhead charges that have been allocated to those work orders are closed to the individual plant accounts based on the propert units on the work order. At this point, the overheads become part of Idaho Power's rate base. The response to this Request was prepared by Tami White, Finance Team Leader, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 36 REQUEST NO. 28: When would Rule H overheads be expensed? RESPONSE TO REQUEST NO. 28: When capital work orders are completed, the overhead charges that have been allocated to those work orders are closed to the individual plant accounts, based on the propert units on the work order. The overhead charges become part of the cost of the asset and are expensed as depreciation expense over the useful life of the asset. The response to this Request was prepared by Tami White, Finance Team Leader, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 37 REQUEST NO. 29: How are engineers' wages for Rule H projects recorded? Which FERC accounts are used? Which accounts are expensed or capitalized? RESPONSE TO REQUEST NO. 29: Either distribution designers or engineers may design a Rule H project. In both cases, their direct wages for designing Rule H projects are recorded to each individual Rule H project through a direct charge to the capital work ordeL FERC account 107 is used to record the charges made to a project work order. Distribution designers or engineers also charge certain general support time such as safety meetings to work orders that allocate costs to O&M and capital overheads based on yearly studies of the actual split between direct O&M and direct capital work performed by the cost centeL The actual overheads are compared to budgeted overheads on a monthly basis by leaders to assure that only reasonable and prudent costs are charged to the accounts. The overhead costs are then allocated back to the capital projects worked on by the distribution designer or engineer. The overhead allocation process allows costs appropriately charged to the capital work orders to be included efficiently, rather than requiring the distribution designer or engineer to allocate a half hour safety meeting to all the projects they have been working on during a particular period of time. When the project is completed, the charges get capitalized and moved to FERC account 101. The distribution designets or engineets wages, direct charged to Rule H projects, are then expensed as the project is depreciated over its useful life. When the Company charges the customer for engineering fees, the collection of those fees reduces the total cost of the work ordeL However, wages and expenses of leaders and support staff needed to support the distribution designers and IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 38 engineers may not be directly charged to the work order; therefore, the overhead charges are needed to apply those charges to the work orders. The response to this Request was prepared by Tami White, Finance Team Leader, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 39 REQUEST NO. 30: On a prior audit, Staff was told that some wood poles might be reused as temporary service poles. How are these poles accounted for in inventory? What is the charge for these poles under Rule H? RESPONSE TO REQUEST NO. 30: For a pole to be eligible for re-use, Company policy dictates the pole be less than 5 years old and in new condition. The pole remains in inventory and is charged at the current price determined by size and pole class. Salvaged poles and new poles are charged at the same rate. The response to this Request was prepared under the direction of Scott Sparks, Senior Pricing Analyst, Idaho Power Company, in consultation with Barton L. Kline, Lead Counsel, Idaho Power Company. DATED at Boise, Idaho this 11th day of February 2009. ~~~,~,~L"A NORDSTOM Attorney for Idaho Power Company IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 40 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 11th day of February 2009 I served a true and correct copy of IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Kristine A. Sasser Deputy Attorney General Idaho Public Utilities Commission 472 West Washington P.O. Box 83720 Boise, Idaho 83720-0074 -.Hand Delivered U.S. Mail _ Overnight Mail FAX -K Email kris.sasser~puc.idaho.gov Building Contractors Association of Southwestern Idaho Jason S. Risch Jeremy P. Pisca RISCH PISCA, PLLC LAW AND POLICY 407 West Jefferson Street Boise, Idaho 83702-6049 Hand Delivered --U.S. Mail _ Overnight Mail FAX ~ Email irisch~rischpisca.com ipisca~rischpisca.com City of Nampa AND Association of Canyon County Highway Districts Matthew A. Johnson Davis F. VanderVelde WHITE PETERSON GIGRA Y ROSSMAN NYE & NICHOLS, P.A. 5700 East Franklin Road, Suite 200 Nampa, Idaho 83687 Hand Delivered --U.S. Mail _ Overnight Mail FAX ~ Email miohnson~whitepeterson.com dvandervelde~whitepeterson.com Kroger Co. Michael L. Kurt Kurt J. Boehm BOEHM, KURTZ & LOWRY 36 East Seventh Street, Suite 1510 Cincinnati, Ohio 45202 Hand Delivered --U.S. Mail _ Overnight Mail FAX ~ Email mkurtz~BKLlawfirm.com kboehm~BKLlawfirm.com IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 41 Kevin Higgins Energy Strategies, LLC Parkside Towers 215 South State Street, Suite 200 Salt Lake City, Utah 84111 Hand Delivered -lU.S. Mail _ Overnight Mail FAX -- Email khiggins~energystrat.com ¡l ~. lJ. (v~iš. NõrdSiròm1( IDAHO POWER COMPANY'S RESPONSE TO THE COMMISSION STAFF'S FIRST PRODUCTION REQUEST TO IDAHO POWER COMPANY - 42 BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-08-22 IDAHO POWER COMPANY RESPONSE TO STAFF'S PRODUCTION REQUEST NO. 13 An IDACORP company Dear Contractor: The increasingly competitive natue oftoday's electrical utilty industry has challenged Idaho Power Company to ensure that our contractors are adding value to our end product. Consequently, we have developed a Contractor Qualification Assessment to assist us in evaluating a potential contractor's capabilities. Any contractor who desires to be considered for work for Idaho Power Company must first complete and submit this assessment form, a copy of which is attched. After completing the Contract Qualification Assessment form, please retur it and all certificates of insurance requested in the assessment to: Idaho Power Company Attn: Contract Manager 10790 Franin Road Boise, ID 83709 The information submitted is for Idaho Power Company's internal use only and wil be kept strictly confidentiaL. Completion of this form does not obligate Idaho Power Company to request proposals from or contract for the services of any contractor. Than you for your interest in performing services for Idaho Power Company. Sincerely, Contract Management Deparment Delivery Business Unit Idaho Power Company attchment Contractor Qualification Assessment LGL 037 7/18/08 1221 W. Idaho St. (83702) P.O. Box 70 Boise, 10 83707 Contractor Qualification Assessment Delivery Business Unit An IDACORP Company Contractor Information Company Name Phone Number Address City State ¡ZiP E-mail Address Service Area Type of Work Performed Contacts (Please list owner, president, and other key personnel in your organization we may contact.) First Contact Title Phone Number E-mail Address Second Contact Title Phone Number E-mail Address Third Contact Title Phone Number E-mail Address Fourth Contact Title Phone Number E-mail Address Equal Employment Agreement and Certification Contractor agrees to comply with all applicable equal employment opportunity, small business, and affrmative action laws and regulations to which Contractor is subject and agrees to execute and deliver such documents as may be required to effect or to evidence such compliance. Any contract entered into with Contractor by Idaho Power Company incorporates by reference the EEO clauses of E.O. 11246, as amended, and 41 CFR 60-741.5 subpart A and 41 CFR 60-250.5 subpart A. Wil you comply with this statement during performance on all contracts with Idaho Power Company? 0 Yes 0 No Conflict of Interest 1. Does your company, or any principal with your company, have a financial, business, or personal relationship with Idaho Power Company, IDACORP, Inc., or any subsidiaries of IDACORP, Inc. or with any employees of these companies, which may qualify as a conflict of interest? 0 Yes 0 No 2; If Yes, please explain: Contractor Qualification Assessment LGL 037 7/18/08 -1-IPC Financial Background 1. If requested, wil you provide Idaho Power with an audited standard financial statement?DYes D No 2. Wil you authorize a credit history review?DYes D No 3. Please list bank references: Insurance 1. The following insurance requirements are the minimum required for all contractors working for Idaho Power Company. Depending on the services to be performed, additional coverages may be required. A. Workers' Compensation Insurance shall be at statutory limits and Employer's Liability Insurance shall have the following limits: Bodily Injury by Accident Bodily Injury by Disease Bodily Injury by Disease $100,000 each accident $500,000 policy limit $100,000 each employee B. Automobile Liability Insurance covering all owned, non-owned, or hired automobiles used in connection with the work. Bodily Injury Liabilty and Propert Damage Liability limits shall not be less than $1,000,000 each accident Combined Single Limit. An endorsement shall be issued naming Idaho Power Company as an additional insured. C. Commercial General Liability Insurance with limits not less than $1,000,000 each occurrence combined single limit. The insurance shall include coverage for Premises and Operations, Broad Form Propert Damage, Contractual Liability, Owner's and Contractor's Protective Liability, Products and Completed Operations (extended for at least 12 months after completion of the operations) and Personal Injury. The policy shall also include coverage for the hazards commonly referred to as the XCU (explosion, collapse and underground). An endorsement shall be issued naming Idaho Power Company as an additional insured. D. Any of Contractor's subcontractors of any tier shall be required by Contractor under the terms of any subcontract to obtain like insurance coverage to that specified in Paragraphs A, B, C, and E of this Section. E. Insurance coverage described in Paragraphs A, B, C and D above shall be carried with Insurance companies satisfactory to Idaho Power Company. Contractor shall provide to Idaho Power Company a Certificate of Insurance evidencing such Insurance coverage and naming Idaho Power Company as an additional insured on the coverage described in Paragraphs Band C. These certificates shall contain a provision that coverage afforded shall not be canceled or changed until at least thirty (30) days prior written notice has been given to Idaho Power Company. F. If requested by Idaho Power Company, Contractor shall provide a copy of the original insurance policies and all endorsements. 2. Does your company maintain the above insurance coverages? DYes D No 3. Please return with this completed assessment Certificates of Insurance meeting subparagraph 1.E above. (NOTE: Assessments submitted without Certificates of Insurance wil not be considered further.) Contractor Qualification Assessment LGL 037 7/18/08 -2-¡PC Personnel/Skil Level 1. List the positions you employ at your company and number of employees at each leveL. Position No. of Employees Position No. of Employees 2. List the experience, certification, skil levels, and/or training your company requires for each position listed above: Experience of Company 1. List the type of services your company can provide and the years of experience you have with each type of service: Services Years 2. List the jobs currently in progress on which your company is working: Contract Key Contacts Job Name & Location Value Description and Phone Numbers Contractor Qualification Assessment LGL 037 7/18/08 -3-IPC 3. List the last five jobs your company has completed: Contract Key Contacts Job Name & Location Value Description and Phone Numbers The following sections must be completed by all construction contractors. E ui ment (List type, quantity, and age of the following equipment. Attach additional pages as necessary.) 1. Major Equipment (bucket trucks, tractors, loaders): 2. Communication Equipment (mobile phones, two-way radios, cellular phones): 3. Equipment & Tools (List all other available equipment & tools that are applicable for the type of work applied for.): Contractor Qualification Assessment LGL 037 7/18/08 -4-IPC Safety 1. Does a comprehensive safety program exist?DYes 0 No 2. Name of person responsible for ensuring that safety program requirements are implemented and maintained: Training 1. Does a comprehensive training program exist?DYes 0 No 2. Name of person responsible for ensuring that training program requirements are implemented, completed, and maintained: 3. List additional training conducted by your company that is not required by federal, state, and local regulations. Training Program Name Date Implemented Hours Mandatory DYes DNo DYes DNo DYes DNo I certify the answers given above to be tre and accurate and provide the same with the intention that Idaho Power Company rely on the same in assessing Contractor's qualifications. Signature of Contractots Authorized Representative Date Contractor Qualification Assessment LGL 037 7118/08 -5-IPC BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-08-22 IDAHO POWER COMPANY RESPONSE TO STAFF'S PRODUCTION REQUEST NO. 20 St r a t e g i c S o u r c i n g P r o c e s s St r a t e g i c S o u r c i n g e m p l o y s a s t r u c t u r e d , f a c t - d r i v e n , c o l l a b o r a t i v e m e t h o d o l o g y t h a t en a b l e s e f f e c t i v e d e c i s i o n m a k i n g r e g a r d i n g t h e s o u r c i n g o f g o o d s a n d s e r v i c e s . A. S o u r c i n g A p p r o a c h B. C a t e g o r y D a t a Co l l e c t i o n C. S u p p l y C h a i n C o s t s D. S t a k e h o l d e r s E. S o u r c i n g T e a m F. T e a m K i c k o f f 1 A. E x t e r n a l M a r k e t An a l y s i s B. I n t e r n a l En v i r o n m e n t C. I n t e r n a l S u p p l y Ch a i n A n a l y s i s D. S u p p l i e r I D a n d 1s t S c r e e n A. C a t e g o r y S o u r c i n g St r a t e g y B. B o u n d a r i e s a n d Go a l s Id e n t i f i c a t i o n C. R F P D e v e l o p m e n t A. R F P a n d 2 n d Sc r e e n B. S e l e c t i o n C r i t e r i a C. 3 r d S u p p l i e r Sc r e e n i n g D. N e g o t i a t i o n s E. S u p p l i e r S e l e c t i o n F. R e c o m m e n d a t i o n to M a n a g e m e n t an d A p p r o v a l A. F i n a l A g r e e m e n t B. A g r e e m e n t Co m m u n i c a t i o n C. S u p p l i e r De v e l o p m e n t In i t i a t i o n Th e T o t a l C o s t O f Ow n e r s h i p ( T C O ) M o d e l St r a t e g i c S o u r c i n g f o c u s e s o n T C O , t h e p r e s e n t v a l u e o f a l l c o s t s a s s o c i a t e d w i t h a p r o d u c t , se r v i c e o r c a p i t a l e q u i p m e n t t h a t a r e i n c u r r e d o v e r i t s e x p e c t e d l i f e . Pr o d u c t s Se r v i c e s TC O M o d e l Ca p i t a l E q u i p m e n t In t e r n a l Co s t s Ex t e r n a . J Co s t s 1 Th e a m o u n t p a i d f o r t h e p r o d u c t , s e r v i c e o r c a p i t a l e q u i p m e n t Pu r c h a s e C o s t s Al l c o s t s a s s o c i a t e d w i t h b r i n g i n g t h e p r o d u c t , s e r v i c e o r c a p i t a l eq u i p m e n t t o t h e c u s t o m e r ' s l o c a t i o n ( s o u r c i n g , a d m i n i s t r a t i o n , fr e i g h t , a n d t a x e s ) . Pr o d u c t s - A l l co s t s a s s o c i a t e d wi t h c o n v e r t i n g in t o a f i n i s h e d pr o d u c t a n d su p p o r t i n g i t th r o u g h i t s u s a b l e li f e . Se r v i c e s - A l l c o s t s as s o c i a t e d w i t h th e p e r f o r m a n c e of t h e s e r v i c e t h a t ar e n o t i n c l u d e d i n th e p u r c h a s e pr i c e . Ca p i t a l E q u i p - A l l co s t s a s s o c i a t e d wi t h o p e r a t i n g t h e eq u i p m e n t t h r o u g h it s l i f e . Al l c o s t s i n c u r r e d w h e n a p r o d u c t , s e r v i c e , o r c a p i t a l e q u i p m e n t re a c h e s t h e e n d o f i t s u s a b l e l i f e , n e t o f a m o u n t s r e c e i v e d f r o m th e s a l e o f r e m a i n i n g p r o d u c t o r t h e e q u i p m e n t . ( o b s o l e s c e n c e , di s p o s a l , c l e a n u p , a n d p r o j e c t t e r m i n a t i o n ) . 2