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Home My WebLink About20080611AVU to Staff 78, 86, 87-88, etc.pdf. . . Avista Corp. 1411 East Mission P.O. Box 3727 Spokane. Washington 99220-0500 Telephone 509-489-0500 Toll Free 800-727-9170 ~~JV'STA. Corp.E: (:; t: 1 fì. J zoon J!J¥\f l I Ar'j 9: 20 June 10, 2008 Idaho Public Utilities Commission 472 W. Washington St. Boise, ID 83720-0074 . Attn: Scott Woodbury Deputy Attorney General Re: Production Request of the Commission Staff in Case Nos. A VU-E-08-01 and A VU-G-08-01 Dear Mr. Woodbury, Enclosed are an original and three copies of Avista's responses to IPUC Staffs production requests in the above referenced docket. Included in this mailng are Avista's responses to production requests 078, 086 Supplemental, 087-088, 091, 094, 100, 107-108, 111, 117-118, 120-121, and 125-132. The electronic versions of the responses were emailed on 6/09108 and are also being provided in electronic format on the CDs included in this mailing. Also included is Avista's CONFIDENTIA response to PR-094 and PR-125. Those responses contain TRADE SECRET, PROPRIETARY or CONFIDENTIAL information and are separately filed under IDAPA 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code, and pursuant to the Protective Agreement between Avista and IPUC Staff dated March 13, 2008. They are being provided under a sealed separate envelop, marked CONFIDENTIA. If there are any questions regarding the enclosed information, please contact me at (509) 495- 8620 or via e-mail atpat.ehrbarêavistacorp.com Sincerely,(,~~ Patrick Ehrbar Regulatory Analyst Enclosures . . . AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION .... JUSDICTION: CASE NO: REQUESTER: TYPE: REQUEST NO.: DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06110/08 Dave DeFelice Jeane Pluth State & Federal Reg. (509) 495-2204 IDAHO A VU-E-08-01/ A VU-G-08-01 IPUC Production Request Staff-078 REQUEST: Please provide reports, printout and an electronic version on CD in Excel format with formulas activated, by project, which includes at least the following items: the project number, expenditue type, vendor description, transaction description, transaction amount, date posted, document/transaction number, and total amount posted in each year. Please provide a report(s) showing each of the following projects: a. ER # 7001 Structures and hnprov for $18 milion in 2005, b. ER # 1000 Electrc Revenue Blanket for 2005, 2006 and 2007, c. ER # 1003 Distribution Line Transformers for 2005, 2006 and 2007, d. ER # 2106 Boulder Constrction for 2005, e. ER # 5000 Computer Software for 2005, 2006, 2007 and 2008, f. ER # 4116 Colstrip Capital Additions for 2005,2006,2007 and 2008, g. ER # 5001 ComputerlNetwork Hardware for 2005,2006,2007 and 2008, h. ER # 6103 Clark Fork hnplement PME Agreement for 2007 and 2008, i. ER # 4135 Noxon Unit 4 Runer Upgrade for 2007, J. ER # 7000 Transportation for 2006,2007 and 2008, k. ER # 8000 Accounting Transfer Adjustments for 2006 and 2008, 1. ER # 4105 Noxon Capital Projects for 2005 and 2006, m. ER # 4130 Cabinet Gorge Unit # 4 Runner Replacement for 2007, n. ER # 4109 Upper Falls Capital Projects for 2005, o. ER # 2059 Failed Electric Plant - Unkown for 2006 through 2008, p. ER # 7400 Avista Mobile Dispatch for 2006, q. ER # 7050 Productivity Initiative for 2007, r. ER # 4136 Noxon Rapids Unit I Turbine for 2008, s. ER # 7101 COF HV AC Improvement for 2008, t. ER # 7106 Construct Ross Court Office Building for 2008, u. ER # 2055 Electric Distribution Minor Blanet for 2008, v. ER # 2060 Wood Pole Mgmt for 2005 through 2008, If any ofthese reports are exceedingly voluminous, please contact Patrcia Harms to discuss alternate and/or summary information that may be provided. RESPONSE: For the ERs requested, except ER# 7106 Constrct Ross Court Office Building for 2008, electronic Excel spreadsheets have been provided in the fie "StafCPR_078-Attachment A". Due to the voluminous natue ofthis data, it is being provided in electronic format only. For ER#71 06, please see the Company's response to StaffPR-079. Page 1 of2 .. . . . For all ofthe ERs, the spreadsheets include: 1. A summar-level report that details by year and by project a summary ofthe charges. 2. A detailed report of all individual charges (Except ER# 1000 Electric Revenue Blanet). 3. ER#1000 Electric Revenue Blanet does not have the detail charges due to the voluminous nature of this ER. Upon request from IPUC Staff, this level of detail wil be provided for specific projects within this ER. Previously, Staff was provided a report called "PiS Schedule 2005_2007" that detailed transfers from Construction Work in Progress (CWIP) to Plant in Service (PIS) for 2005 through 2007 by ER. When reviewing data provided with this production request, it should be noted that the amounts by year and ER wil not agree to the PiS Schedule 2005_2007 Report, due to the following: . The PIS Schedule 2005 2007 includes costs that were transferred out of CWIP into PIS in the year of the transfer. The spreadsheets provided with this Production Request include the costs that were recorded to CWIP in the year the charges were incurred. Therefore, there will be differences for the projects that begin in one year but do not transfer to plant in service until the next year. . The PIS Schedule 2005 2007 includes costs that were recorded in FERC Account 107, Construction Work in Progress. The spreadsheets provided with this Production Request include all capital costs, including those recorded to accounts other than FERC Account 107. For example, cost of removal recorded to FERC Account 108 are included in the spreadsheets. Page 2 of2 .¡ . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION IDAHO A VU-E-08-01 / A VU-G-08-01 IPUC Production Request Staff-086 Supplemental DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/06/08 Malyn Malquist Patrck Ehrbar State & Federal Reg. (509) 495-8620 Please provide copies of all reports on Avista by rating agencies and securities analysts for 2007 through 2008 as they become available. RESPONSE: Attached is "StafCPR _ 086-S-Attachment Apdt' which is a Ladenburg Thalman analyst update. ,¡ StafCPR_086-S-Attachment A.pdf Page 1 of6 AVISTA CORP (AVA) Raising Estimates and Price Target - Reiterating BUY Rating Price Price Target, Exci Dividends (YE08) 52 - Week Range Mkt. Capitalization (mill) Enterprise Value (mill) FD Shares Outstanding (mill) Avg. Daily Trading Vol. (000) Book Value per Share (1008A) Dividend (FY08E) I Yield $20.78 $26.00 $23.56-$17.80 $1,101 $2,153 53 361 $17.70 $0.66 3.2% FY2007A FY200BE FY2009E . Revenue (mill)1,418 1,448 1,496.10EPS $0.26 $0.47 20EPS $0.26 30EPS $0.00 . 40 EPS $0.26 EPS $0.72 $1.46 $1.79 Prior EPS $1.45 $1.63 Consensus EPS $1.47 $1.68 . PIE 28.9x 14.3x 11.6x EV/EBITDA 9.1x 7.7x 7.3x P/FCF 115.5x 115.5x 1926.2x . ....Feb-7 Jul-7 Dei:.(7 M... ¡~WlI'. 51' 5~~.=;J Chart data: Bloomberg . Highlights . We are reiterating our BUY rating on AVA. Our revised price target of $26 per share (previously $24 per share) is based on our calculated 2008 sum-of-the-parts analysis of $23-$26 per share a 2008/2009 target PIE ratio of 17.8x114.5x. . The primary driver of our increased estimates and price target is revised expectations for 2009 rate relief in Washington and Idaho, as well as, recent Oregon gas general rate case settlement agreement. AVA recently reached and all-part settlement agreement in its Oregon gas general rate case. Specifically, the rate increase wil be implemented in two steps resulting in a total of $2.28m increase. In March 2008, AVA filed its Washington electric ($36.6m) and gas ($6.6m) general rate case. We expect a final electric and gas rate order by early February 2009. In April 2008, AVA filed its Idaho electric ($32.3m) and gas ($4.7m) general rate case. We expect a final electric and gas rate order by early November 2008. Upcoming eventslinitiatives to monitor include updated dividend policy (August 2008), Staff and Intervenor testimony to be filed in Idaho (August 15, 2008), Staff and Intervenor testimony to be filed in Washington (September 12,2008). Brian J. Russo, CFA 646-432-6312 brusso(Qladen bu rg. com NEW YORK, NY HOUSTON. TX COLUMBUS,OH Disclosures and Analyst Certifications can be found in Appendix A. LOS ANGELES, CA LUTZ, FL MIAMI, FL LINCOLNSHIRE, IL BOCA RATON, FLMELVILLE, NY PRINCETON, NJ 153 East 53'd Street . New York, New York 10022 . Telephone: 212-409-2000 800-LAD-THAL Member New York Stock Exchange, American Stock Exchange, FIN, and SIPC StafCPR_086-S-Attachment A.pdf Page 2of6 AVISTA CORP (AVA).Investment Conclusion Raising Price Target and Reiterating BUY Rating We are reiterating our BUY rating on AVA. Our revised price target of $26 per share (previously $24 per share) is based on our calculated 2009 sum-of-the- parts analysis of $23-$26 per share a 2008/2009 target PIE ratio of 17.8x114.5x. Recently Settled and Pending Rate Cases . AVA recently reached and all-part settlement agreement in its Oregon gas general rate case. Specifically, the rate increase wil be implemented in two steps ($866,000 in April 2008 and $1.42m in November 2008) resulting in a total of $2.28m increase. The settlement agreement also assumes a 10% ROE and a 50.0% common equity ratio. As of December 2007, rate base totaled $89m. In March 2008, AVA filed its Washington electric ($36.6m) and gas ($6.6m) general rate case. We estimate approximately $10m of the electric rate request is related to fueL. AVA requested a 10.8% ROE and a 46.3% common equity ratio for both its electric and gas rate request. As of December 2007, electric rate base totaled $890m and gas rate base totaled $151m. We expect a final electric and gas rate order by early February 2009. In April 2008, AVA filed its Idaho electric ($32.3m) and gas ($4.7m) general rate case. We estimate approximately $16m of the electric rate request is related to fueL. AVA requested a 10.8% ROE and a 47.9% common equity ratio for both its electric and gas rate request. As of December 2007, electric rate base totaled $502m and gas rate base totaled $73m. We expect a final electric and gas rate order by early November 2008. Upcoming Events to Monitor Upcoming events/initiatives to monitor include updated dividend policy (August 2008), Staff and Intervenor testimony to be fied in Idaho (August 15, 2008), Staff and Intervenor testimony to be filed in Washington (September 12, 2008). Raising 2008 and 2009 Cash and Earnings Expectations We expect 2008 eamings of $1.46 per share (previously $1.45 per share). With normal hydro generation output and a reset of the authorized power supply cost, AVA is not expected to incur $8.0m or $0.10 per share in supply costs that negatively impacted 2007 results but rather record a benefit. Also included in our forecasts is approximately $0.50 per share in margin improvement primarily driven by rate increases and a $0.15 per share decrease in interest expense (assumes June 2008 refinancing) partially offset by approximately $0.25 per share of increased operating and maintenance expenses. . The company is expecting normal hydro conditions for 2008, however, the next . several months are criticaL. If the weather remains cold (April temperatures were below normal) then the snowpack should melt slowly and AVA would have solid hydro capacity during the summer months (hydro) which would be viewed positively. Any absorption of costs in 2008 could be offset by lower costs in 3008. If the weather is warmer than normal then the snowpack could melt quickly and lead to too much run-off (and related spillover) and AVA would likely be incurring higher costs for third. quarter power than what is embedded in rates which would be viewed negatively Ladenbur Thalmann &. Co. Inc. Pa e - 2 - StafCPR_086-S-Attachment A.pdf Page 3 of6 AVISTA CORP (AVA).We expect 2009 earnings of $1.79 per share (previously $1.63 per share). Our estimates assume normal weather, organic growth, full year of interest expense savings and rate relief partially offset by higher operating expenses related to net plant additions and increased fully diluted shares outstanding. We conservatively estimate that AVA is granted 50% of its rate request in Washington and Idaho totaling approximately $0.30 per share in earnings. Primary Risks The primary risks of an investment in AVA shares include (but are not limited to); pending Oregon general rate case, under-recovery of volatile supply costs including power, fuel and natural gas, regulatory allowance of the recovery of power and gas costs, operating costs and capital investments, uncertain stream flow and weather conditions, legislation/regulation changes, generation' plant availabilty (unplanned outages), access to capital markets, litigation, pension requirements, changes in wholesale energy prices, execution risk, hydro relicensing, changes in regional economy, increased employee related costs. See Appendix A for additional risk factors. Table 1: AVA -Sum-of-the-Parts . Sum-of.lh-Part 2008E EBITDA Low Base High Low Base High Regulated Utiites 274,325 8.0 8.5 9.0 2,194,599.4 2,331,761.2,468,924.3 Advantage IQ 12.247 8.0 10.0 12.0 97,974.122,467.146,961.3 Total Equity Value $286,571.70 2,292,573.2,454,229.2,615,885.6 Less: 2008E Net Debt 1,091,264.7 1,091,264.1,091,264.7 Net Equity Value 1,201,308.9 1,362,964.9 1,524,620.9 INet EQuiIV Per Share $22.30 $25.3 $28.301 Shares outstanding 53,882.0 53,882.53,88io (in thousands) (in $ per share) Sum.of-the-Part 2008E EPS Low Base High Low Base High Utilities $1.34 15.7 16.6 17.4 $21.1C $22.21 $23.32 Advantage IQ $0.12 15.0 20.0 25.0 $1.76 $2.34 $2.93 ITotal Equity Value Per Share $1.46 $22.85 $24.55 $26.25 Source: Ladenburg Thalmann & Co, Inc., Company Reports Table 2: AVA - Financial Summary (millions of US$ unles otrwe note)2011E 2012E 2013EOperating Data 2005 2006 2007 2008E 20D9E 2010E Elect Ublitie (in thousands of MWh)11,038 10,892 10,50 10,529 10,552 10.665 10,784 10,911 11,045 Gas UNitis (In ihousands of Dienns)56.307 629,906 700,433 720,588 727,794 735,072 742,422 749.847 757,345 Avtta Utilities EBITDA 229,925 274,372 218,042 274,325 310,299 324.927 347,321 339,013 335,216 Advantage ie EBITOA 9,010 12,567 11,012 12,247 13,736 14,821 15,458 16,110 16,779 Summary Balance Sheet 2005 2006 2007 200SE 2009E 201DE 2D11E 2012E 2U13E PP&E 2,777 2,649 2,348 2,588 2,666 2,760 2,848 2.930 3,007 Total Assets 4,948 4,057 3.186 3,25 3,371 3,454 3,569 3,678 3,786 Tolal Debt/Leases 1,103 1,063 1,062 1,092 1,092 1,092 1,092 1,092 1.092 Total Net Det/Leases 1,052 1,005 1,046 1,091 1,142 1,181 1,188 1,198 1.208 Equity 77 917 914 1,062 1,161 1,267 1.384 1.493 1.595 DebVTotal capitl (%)58.9%53.7%53.8%50.7%48.5%46.3%44.1%42.3%40.6% Debl/EBITDA (x)4.6 3.7 4.6 3.8 3.4 3.2 3.0 3;1 3.1 Cash Flow Analysis 2005 2006 2007 200SE 2009E 2010E 2011E 2012E 2013E Operating Revue 1.360 1.506 1,418 1,448 1,496 1;513 1,561 1,579 1,598 EBITDA 239 2B7 229 2B7 324 340 3B3 355 352 EBIT lB2 20B 13B 193 223 234 251 23B 22. Income 45 73 3.79 ..,..117 ,..'.3 Cash fro opations 130 201 252 207 203 215 232 22.22. less: Capitl Exitures 21.,.5 20 19B 203 203 203 203 203 Free Cash Flow (B')3.46 ,.1 13 2.26 28.Source: Ladenburg Thalmann & Co, Inc., Company Reports Ladenbur Thalmann &. Co. Inc. Pa e - 3 - . . . StafCPR_086-S-Attachment A.pdf Page 4 of6 AVISTA CORP (AVA) APPENDIX A: IMPORTANT RESEARCH DISCLOSURES ANALYST CERTIFICATION I, Brian Russo, attest that the views expressed in this research report accurately reflect my personal views about the subject security and issuer. Furthermore, no part of my compensation was, is, or wil be directly or indirectly related to the specific recommendation or views expressed in this research report. The research analyst(s) primarily responsible for the preparation of this research report have received compensation based upon various factors, including the firm's total revenues, a portion of which is generated by investment banking activities. COMPANY BACKGROUND Headquartered in Spokane, Washington, Avista Corporation (AVA) is an energy company engaged in the generation, transmission and distribution of electricity and distribution of natural gas as well as other energy-related businesses. The company's primary subsidiaries are Avista Utilities, which operates AVA's regulated electric and natural gas operations in parts of Washington, Idaho and Oregon, and Advantage IQ, the primary non-regulated subsidiary. VALUATION METHODOLOGY We value equities utilizing a multi-faceted approach which includes; sum-of-the-parts, net asset value, discounted cash flow, leading PIE, EV/EBITDA. RISKS On top of normal economic and market risk factors that impact most all equities, Avista Corporation (AVA) is uniquely at nsk to: Timely and adequate rate relief is essential to maintain credit profie and earning a reasonable rate of return. Maintaining and improving regulatory relationships is criticaL. Political opposition to rate increases and demand elasticity. The rise in commodity prices and expectations of soaring customer utilty bills this winter and throughout 2006E have manifested into a political issue in a number of states. Politicians (many of whom are up for re-election) have used this issue as a political platform. The increasingly contentious political and regulatory environment in several states has increased regulatory risk, in our opinion. AVA operates in three states with majority of operations in Washington. Operating performance is dependent on continued solid electricity demand growth. Any regional economic slowdown would negative impact results. Rising fuel costs could adversely impact financial performance. High and volatile supply costs could negatively impact near-term results. Any sustained uptrend in commodity prices could negatively impact AVA's operations at subsidiaries without timely pass- through of fuel costs. Rising interest rates could impact AVA's future cost of borrowing and stunt economic growth. AVA has outlined a large capital expenditures program. Timely and adequate recovery of regulated asset investments is imperative to maintain margins. Pension obligations may require increased funding dependent on various market assumptions. Unplanned outages at generating plants can increase the cost of power required to serve its customers given that the cost of replacement power is typically considerably higher price than the company's cost.of generation. A reduction in precipitation (particularly winter snowpack) can negatively impact electric resource costs by decreasing hydroelectric generation capabilty and increasing the costs for fuel to run thermal generation. This also increases the need for cash to purchase electric resources in the wholesale market. Regional precipitation and snowpack conditions typically have a significant effect on regional wholesale prices Regulatory and litigation risk. STOCK RATING DEFINITIONS Buy: The stock's return is expected to exceed 15% over the next twelve months. Neutral: The stock's return is expected to be plus or minus 15% over the next twelve months. Sell: The stock's return is expected to be negative 15% or more over the next twelve months. Investment Ratings are determined by the ranges described above at the time of initiation of coverage, a change in risk, or a change in target price. At other times, the expected returns may fall outside of these ranges because of price movement andlor volatilty. Such interim deviations from specified ranges wil be permitted but wil become subject to review. Ladenbur Thalmann & Co. Inc. Pa e - 4 - ,¡ . . . StafCPR_086-S-Attachment A.pdf Page 50f6 AVISTA CORP (AVA) RATINGS DISPERSION AND BANKING RELATIONSHIPS Buy 66% (12% are banking clients)Neutral 33% (6% are banking clients)Sell 1% (0% are banking clients) INVESTMENT RATING AND PRICE TARGET HISTORY ladenburg Thalinann S CO. Inc. rat~$lor AVA (AVISTA CORP) Closin Price May 28, 2J(l $20.76 , . 25 ,,'" '" '" "'.. .... l' .. "" "'.. "',..'"........i..."'~ ""J"f,..i. "",,-__,., i \..' '. .'\ . '. - -. . n t'''..........,, .." i \ ;~ i '. - ,'J'"J'.'~~""'' ' , :_- - , . ,i t ,.,l:,i V lJ ",. ~.. '" !ti*' ~". ~.. ,":7 ~ _..........,,,),¡ ih. -'" ,. '-, .i fr 'I '",r:. . ',,' J. J''''CI,' - . .... .¡ it' ,.r~, r '" "'Qi. '. , ¡t"', '\. ,J'''' fi, /'" \tii J ' '/ """u. l' ' 20l'f/L." /'tA ,J,Æ t \1 y t'f ~t .t../' ,. r 1.i ..i','ff, ' \"d 15JûOc 20rJ Apr Jut OcOct 2ö~ Ap Jul l".¿end: B."Buy. T"Piíee larget C:.loitiated/R,¡sumed P(¡sitiv,¡ ~. Reít..late4 Positive $ hn"Jest~r $. ,c¡:i~n Ladenbur Thalmann & Co. Inc. Pa e - 5 - . . . StafCPR_086-S-Attachment A.pdf Page 6 of6 AVISTA CORP (AVA) OTHER COMPANIES MENTIONED: None COMPANY SPECIFIC DISCLOSURES: Ladenburg Thalmann & Co. Inc. does not make a market in subject company. Ladenburg Thalmann & Co. Inc. has not had an investment banking relationship with subject company in the past 12 months. Neither the Analyst, nor members of the Analyst's household own any securities issued by the subject Company, or other companies mentioned in this report. GENERAL DISCLAIMERS Information and opinions presented in this report have been obtained or derived from sources believed by Ladenburg Thalmann & Co. Inc. believe to be reliable. The opinions, estimates and projections contained in this report are those of Ladenburg Thalmann as of the date of this report and are subject to change without notice. Ladenburg Thalmann & Co. Inc. accepts no liabilty for loss arising from the use of the material presented in this report, except that this exclusion of liabilty does not apply to the extent that such liabilty arises under specific statutes or regulations applicable to Ladenburg Thalmann & Co. Inc. This report is not to be relied upon in substitution for the exercise of independent judgment. Ladenburg Thalmann & Co. Inc. may have issued, and may in the future issue, other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect the different assumptions, views and analytical methods of the analysts who prepared them and Ladenburg Thalmann & Co. Inc. is under no obligation to ensure that such other reports are brought to the attention of any recipient of this report. Some companies that Ladenburg Thalmann & Co. Inc. follows are emerging growth companies whose securities typically involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Ladenburg Thalmann & Co. Inc. research reports may not be suitable for some investors. Investors must make their own determination as to the appropriateness of an investment in any securities referred to herein, based on their specific investment objectives, financial status and risk tolerance. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. The price, value of and income from any of the securities mentioned in this report can fall as well as rise. The value of securities is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities. Investors in securities such as ADRs, the values of which are influenced by currency volatilty, effectively assume this risk. Securities recommended, offered or sold by Ladenburg Thalmann & Co. Inc. (1) are not insured by the Federal Deposit Insurance Company; (2) are not deposits or other obligations of any insured depository institution; and (2) are subject to investment risks, including the possible loss of some or all of principal invested. Indeed, in the case of some investments, the potential losses may exceed the amount of initial investment and, in such circumstances; you may be required to pay more money to support these losses. The information and material presented in this report are provided to you for information purposes only and are not to be used or considered as an offer or the solicitation of an offer to sell or to buy any securities mentioned herein. This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or disclosed to another party, without the prior written consent of Ladenburg Thalmann & Co. Inc. Member: NYSE, AMEX, FINRA, all other principal exchanges and SIPC Additional Information Available Upon Request (Ç 2008 - Ladenburg Thalmann & Co. Inc. All Rights Reserved. Ladenbur Thalmann & Co. Inc. Pa e - 6 - . . . JUSDICTION: CASE NO: REQUESTER: TYPE: REQUEST NO.: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION 06/05/08 Bruce Folsom Lori Hermanson Energy Solutions (509) 495-4658 IDAHO A VU-E-08-01 1 A VU-G-08-01 IPUC Production Request Staff-087 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: REQUEST: Please provide a narative explaining how the therm savings and kWh savings for the DSM programs were calculated. Please provide all data and calculations. RESPONSE: For all non-residential prescriptive, residential and limited income projects that have a shorter, more consistent sales cycle, kWh and therm savings are realized upon project completion. Due to the size of non-residential site-specific projects and the amount of time that some of these projects can spend in evaluation, kWh and therm savings are calculated on a derated basis. Consequently, 75% ofthe savings are realized when a project is contracted, another 20% when the project begins construction and the final 5% of the savings are realized upon completion. All associated costslbenefits such as non-energy benefits and customer costs are all realized using the same derating process. This derating process more consistently matches program costs with savings acquisitions and allows for a more accurate view of cost-effectiveness. In addition to usual project movement through the pipeline, savings adjustments (either plus or minus) due to engineering updates, post-verifications or measurement & evaluation may be done to individual projects and derated savings would be recalculated. These adjustments may occur in subsequent time periods. See attached spreadsheet (Staff PR 087-Attachment A.xls) for calculation of 2007 savings. Due to the voluminous natue ofthis spreadsheet, it is being provided in electronic format only. AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION.JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO A VU-E-08-01 1 A VU-G-08-01 IPUC Production Request Staff-088 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/06/08 Bruce Folsom Lori Hermanson Energy Solutions (509) 495-4658 REQUEST: Please provide the cost-benefit analysis, the Total-Resource Cost Test and the Utility Cost Test for all DSM programs offered from 2003 to present. RESPONSE: The cost-benefit analysis, Total Resource Cost (TRC) and Utility Cost Tests (UCT) for all programs offered from 2003 through 2007 are included in the attached spreadsheet "Staff PR 088-Attachment A.xls". Notably downward adjustments to projects completed in calendar year 2003 were captured in the 2004 time period, resulting in a total resource cost test benefit/cost ratio of less than 1.00. However, calendar year 2003 and 2004 do pass the total resource cost test when they are . aggregated, thus removing the impact of the timing of this adjustment. . Avista Utilties Summary of Electric Demand-Side Management Cost.Effectiveness January 1, 2003 to December 31, 2007. TOTAL RESOURCE COST TEST Regular income portolio Limited income portolio Overall portolio Electric program electric avoided cost $99,969,874 $4,952,44 $104,922,318 Electric program gas avoided cost $(3,043,874) $12,548 $(3,031,326) Electric program non-energy benefits $43,293,841 $71,878 $43,365,719 TOTAL TRC BENEFITS $140,219,841 $5,036,870 $145,256,711 Electric program non-incentive utilty cost $7,627,398 $295,562 $7,922,960 Electric program customer cost $84,187,913 $2,849,769 $87,037,682 TOTAL TRC COSTS $91,815,311 $3,145,331 II $94,960,642 NET TRC BENEFITS $48,404,530 $1,891,53911 $50,296,069 TRC BENEFIT I COST RATIO 1.53 1.60 1.53 UTILITY COST TEST Regular income portolio Limited income portolio Overall portolio Electric program electric avoided cost $99,969,874 $4,952,44 $104,922,318 Electric program gas avoided cost $(3,043,874) $12,548 $(3,031,326) TOTAL UCT BENEFITS $96,926,000 $4,964,99211 $101,890,992 Electric program non-incentive utility cost $7,627,398 $295,562 $7,922,960 Electric program incentive utilty cost $19,395,489 $2,849,769 $22,245,258 TOTAL UCT COSTS $27,022,887 $3,145,331 $30,168,218.NET UCT BENEFITS $69,903,113 $1,819,661 \I $71,722,774 UCT BENEFIT I COST RATIO 3.59 1.58 3.38 PARTICIPANT TEST Regular income portolio Limited income portlio Overall portolio Electric program lost utilty revenue PV $101,528,086 $6,889,137 108,417,223 Non-energy benefits $43,293,841 $43,365,719 TOTAL PARTICIPANT BENEFITS $144,821,927 $151,782,942 Customer project cost $84,187,813 $2,849,769 $87,037,582 Electric program incentive utility cost $(19,395,489) $(2,849,769)$(22,245,258) TOTAL PARTICIPANT COSTS $64,792,324 $$64,792,324 NET PARTICIPANT BENEFITS $80,029,603 $6,961'O~~1 $86,990,618 PARTICIPANT BENEFIT I COST RATIO 2.24 2.34 NON.PARTICIPANT TEST Regular income portolio Limited income portolio Overall portolio Electric program electric avoided cost $99,969,874 $4,952,444 $104,922,318 TOTAL NON-PARTICIPANT BENEFITS $99,969,874 $4,952,444 $104,922,318 Electric program lost electric revenue PV $106,570,158 $6,868,371 $113,438,529 Electric program non-incentive utilty cost $7,627,398 $295,562 $7,922,960 Electric program incentive utilty cost $19,395,489 $2,849,769 $22,245,258.TOTAL NON-PARTICIPANT COSTS $133,593,045 $10,013,70211 $143,606,747 NET NON-PARTICIPANT BENEFITS $(33,623,171 )$(5,061,258)\\ $(38,684,429) NON-PARTICIPANT BENEFIT I COST RATIO 0.75 0.49 0.73 StafCPR_088-Attachment A.xls Page 1 of 2 . Re g u l a r i n c o m e TO T A L R E S O U R C E C O S T T E S T p o r t o l i o 20 0 3 Lim i t e d I n c o m e po r t o l i o Ov e r a l l p o r t o l i o . 20 0 4 2 0 0 5 Re g u l a r i " r o m e L i m i t e d i n c o m e R e g u l a r i n c o m e L i m i t e d i n c o m e po r t o l i o p o r t o l i o O v e r a l l p o r t o l i o p o r t o l i o p o r t f o l i o O v e r a l l p o r t o l i o Ele c r i c p r o r a m e l e c c a v o i d e d c o $ 11 , 8 3 1 , 3 2 2 $ 1,1 7 0 , 2 8 1 $ 13 , 0 0 1 . 5 8 3 $ 12 , 4 3 7 , 0 8 7 $ 88 3 , 1 7 9 $ 13 , 3 2 0 . 2 8 6 Ele c t r i c p r o r a m g a s a v o i d e d c o s t $ (2 7 9 , 9 3 0 ) $ - $ (2 7 9 , 9 3 0 ) $ (5 4 9 , 7 9 2 ) $ $ (5 4 9 , 7 9 2 ) Ele c t r i c p r o g r a m n o n . . n e r g y b e n e f i t s $ 3,1 8 4 , 8 6 3 $ 71 , 8 7 8 $ 3,2 3 6 . 7 4 1 $ 7, 4 8 9 , 0 7 4 $ - $ 7, 4 6 9 , 0 7 4 TO T A L T R C B E N E F I T S $ 14 , 7 1 6 , 2 5 5 $ 1,2 4 2 , 1 3 9 $ 15 , 9 5 8 . 3 9 4 $ 19 . 3 5 6 , 3 6 9 $ 88 3 , 1 7 9 $ 20 , 2 3 9 , 5 4 8 El e c t r i c p r o g r a m n o n - i n c e n t i v e u t l i t y c o s t $ El e c t r i c p r o r a m c u o m e r c o s t $ TO T A L T R C C O S T S NE T T R C B E N E F I T S TR C B E N E F I T I C O S T R A T I O 86 1 , 5 7 1 9,5 9 7 , 9 8 5 10 , 4 5 9 . 5 5 8 Re g u l a r i n c o m e UT I L I T Y C O S T T E S T p o r t o l i o 4, 2 5 6 , 6 9 9 1,4 1 Ele c t r i c p r o g r a m e l e c t r i c a v o i d e d c o s t Ele c t r i c p r o g r a m g a s a v o i d e d c o s t TO T A L U C T B E N E F I T S Ele c t r i c p r g r a m n o n - i n c e n t i v e u t l i t y c o $ Ele c r i c p r o r a m i n c e n t i v e u t i n t y c o s t J : TO T A L Ù C T C O S T S $ NE T U C T B E N E F I T S UC T B E N E F I T I C O S T R A T I O 86 1 , 5 7 1 $ 2,8 8 0 , 5 0 2 $ 3, 5 4 2 , 0 7 3 $ Re g u l a r i n c o m e PA R T I C I P A N T T E S T p o r t o l i o 8,0 0 9 . 3 1 9 3.2 6 82 , 8 4 7 $ 73 7 , 8 0 $ 80 0 , 4 4 7 1 f $ 44 1 , 8 9 2 1 1 $ 1.5 ~ Lim i t e d i n c o m e po r t o l i o 38 9 , 8 1 4 1 1 $ 1.4 8 Lim i t e d i n c o m e po r t o l i o 92 4 , 2 1 8 10 , 3 3 5 , 7 8 5 11 , 2 6 0 . 0 0 3 4, 6 9 8 , 3 9 1 1.4 2 89 3 , 7 0 2~13 , 4 4 , 2 4 8 5,9 1 2 , 1 2 1 1. 4 4 88 . 3 4 0~63 6 , 0 5 9 24 7 , 1 2 0 I I $ 1.3 ~ 20 0 6 Re g u l a r i n c o m e L i m i t e d i n c o m e po r t o l i o p o r t o l i o O v e r a l l p o r t f o l i o .20 0 7 Re g u l a r i n c o m e L i m i t e d i n c o m e po r t f o l i o p o r t f o l i o O v e r a l l p o r t o l i o 96 2 . 0 4 2~14 , 0 8 0 , 3 0 7 6, 1 5 9 , 2 4 1 1.4 4 $ 2 5 , 4 7 5 , 7 2 8 $ $ ( 8 4 7 , 2 4 9 ) $ $ 1 4 , 8 8 3 , 9 5 9 $ $ 3 9 , 8 9 2 , 4 3 8 $ 1,3 2 0 , 0 0 5~33 , 5 5 1 , 3 1 5 6,1 4 1 . 1 2 1 1.1 8 1, 0 4 8 . 5 4 8 l I $$ 1,0 4 6 . 5 4 6 i f $ 50 , 0 8 3 31 1 , 6 3 6 38 1 , 7 1 9 _ _ 88 4 , 8 2 r 1 1 $ 2.8 ~ 26 , 5 2 2 , 2 7 2 (8 4 7 , 2 4 9 ) 14 , 8 8 3 , 9 5 9 40 , 7 3 8 , 9 8 2 1, 3 7 0 , 0 8 8 32 , 5 4 2 , 9 4 8 33 , 9 1 3 , 0 3 4 Re g u l a r i n c o m e L i m i t e d i n c m e R e g u l a r i n c o m e L i m i t e d i n c o m e Ov e r a l l p o r t o l i o p o r t o l i o p o r t o l i o O v e r a l l p o r t o l i o p o r t o l i o p o r t f o l i o O v e r a l l p o r t f o l i o 8, 8 2 5 , 9 4 8 1.2 0 92 4 , 2 1 8 3,4 1 8 , 3 0 2 4,3 4 2 . 5 2 0 8,3 7 9 , 1 3 3 2.9 3 12 , 4 3 7 , 0 8 7 $ ~ 11 , 8 8 7 , 2 9 5 $ 89 3 , 7 0 2 $~2,4 6 0 , 8 1 3 $ 9, 4 2 8 , 6 8 2 4,8 3 88 3 , 1 7 9 $ $ 88 3 , 1 7 9 1 $ 88 , 3 4 1 $ 56 7 , 7 1 9 l ! 63 6 . 0 5 9 1 1 ' $ 24 7 , 1 2 0 1 1 $ 1.3 9 13 , 3 2 0 , 2 6 6 (5 4 9 , 7 9 2 12 , 7 7 0 , 4 7 4 96 2 . 0 4 2~3,0 9 6 , 6 7 2 9,6 7 3 , 8 0 2 4. 1 2 25 , 4 7 5 , 7 2 6 (8 4 7 , 2 4 9 ) 24 , 8 2 8 , 4 7 7 1,3 2 0 . 0 0~7, 2 0 7 , 1 7 9 17 , 8 2 1 , 2 9 8 3. 4 4 50 . 0 8 3 $ 31 1 , 8 3 6 $ 38 1 . 7 1 9 1 1 $ 88 4 , 8 2 7 1 1 $ 2.8 9 1,3 7 0 , 0 8 8~7,5 6 8 , 8 9 8 Re g u l a r i n c o m e L i m i t e d i n c o m e R e g u l a r i n c o m e L i m i t e d i n c m e Ov e r a l l p o r t o l i o p o r t o l i o p o r t o l i o O v e r a l l p o r t o l i o p o r t f o l i o p o r t o l i o O v e r a l l p o r t o l i o 18 , 3 0 6 . 1 2 5 3,4 2 Ele c r i c p r o r a m l o s t u t i l t y r e v e n u e P V $ No n . . n e r g y b e n e f i s ~ TO T A L P A R T I C I P A N T B E N E F I T S $ 14 , 9 7 6 , 7 6 7~22 , 4 4 . 8 4 1 Cu s t o m e r p r o j e c t c o s t Ele c r i c p r o r a m i n c e n t i v e u t i l i t c o s t TO T A L P A R T I C I P A N T C O S T S NE T P A R T I C I P A N T B E N E F I T S PA R T I C I P A N B E N E F I T I C O S T R A T I O 15 , 2 0 2 . 8 1 5~18 . 3 6 7 , 6 7 8 1.7 2 2 , 1 6 7 71 , 8 7 8 1,7 9 4 , 0 4 5 11 , 4 5 0 . 1 9 5 $ 2.6 8 Ele c t r i c p r o g r a m e l e c r i c a v o i d e d c o s t TO T A L N O N . P A R T I C I P A N B E N E F I T S Re g u l a r i n c m e NO N . P A R T I C I P A N T T E S T p o r t o l i o ~11 , 8 3 1 . 3 2 2 1. 7 9 4 ' c : J $ Lim i t e d i n c o m e po r t o l i o 16 . 9 2 4 , 9 8 2~20 . 1 6 1 . 7 2 3 $~$ 10 , 3 3 5 , 7 8 5 (3 , 4 1 8 , 3 0 2 ) 6, 9 1 7 , 4 8 3 $ 1 3 , 6 7 1 . 5 8 3 $ $ 7 , 4 8 9 . 0 7 4 $ $ 2 1 . 1 4 0 , 6 5 7 $ 12 , 5 5 0 , 5 4 $ (1 , 5 8 8 , 9 1 1 ) $ 10 , 9 8 3 , 8 3 $ 10 , 1 5 7 . 0 2 2 1. 9 2 1, 3 0 5 , 1 8 4 1,3 0 . 1 8 4 56 7 , 7 1 9 $ (5 6 7 , 7 1 9 $ $ 1, 3 0 5 , I : J $ 13 . 1 1 8 , 2 6 5 2,1 3 4 , 6 3 0 ) 10 , 9 6 3 . 8 3 11 , 4 8 2 , 2 0 6 2.0 4 23 , 9 4 4 , 8 8 7 $ 14 , 8 8 3 . 9 5 9 $ 38 , 8 0 8 , 8 4 8 $ 1, 4 8 1 , 5 5 2 $ 2 5 , 4 2 6 . 2 3 9 $ 1 4 , 8 6 3 , 9 5 9 1, 4 8 1 , 5 5 i $ 4 0 , 2 9 0 , 1 9 6 19 , 4 1 2 , 8 4 8 $ (1 , 2 1 1 , 4 8 0 ) $ 5, 2 0 0 , 6 6 9 $ 23 , 4 0 1 , 8 3 7 $ 1,9 8 7 , 2 2 6 $ 13 , 3 2 9 , 8 1 5 $ 15 , 3 1 7 , 0 4 1 $ 8,0 8 4 . 7 9 6 1,5 3 71 2 , 9 7 8 ~ 11 , 9 6 1 $ - $ 72 4 , 9 3 9 $ 33 , 7 8 5 62 8 , 3 3 1 66 2 , 1 1 8 82 , 8 2 3 1 1 $ 1. 0 ~ 20 , 1 2 5 , 6 2 6 (1 . 1 9 9 , 5 1 9 )~24 , 1 2 6 , 7 7 8 2. 0 2 1 , 0 1 1 13 , 9 5 8 , 1 4 6 15 . 9 7 9 . 1 5 7 Re g u l a r i n c o m e L i m i t e d i n c o m e po r t o l i o p o r t f o l i o O v e r a l l p o r t o l i o 8,1 4 7 , 6 1 9 1.5 1 19 , 4 1 2 , 8 4 $ (1 , 2 1 1 , 4 8 0 ) $ 18 , 2 0 1 . 1 6 8 $ 20 , 1 2 5 , 6 2 6 (1 , 1 9 9 . 5 1 9 18 , 9 2 6 , 1 0 7 1,9 8 7 , 2 2 6 4, 5 3 9 , 0 2 1 6, 5 2 8 , 2 4 7 11 , 8 7 4 , 9 2 1 2.7 9 71 2 , 9 7 8~72 4 . 9 3 9 33 , 7 8 5~68 2 , 1 1 8 62 , 8 2 3 1 1 $ 1. 0 9 2.0 2 1 , 0 1 1~7. 1 8 8 . 3 6 3 Re g u l a r i n c o m e L i m i t e d I n c m e po r t f o l i o p o r t f o l i o O v e r a l l p o r t o l i o 11 , 7 3 7 . 7 4 4 2. 6 3 20 . 5 5 6 , 5 5 4~25 , 7 5 7 , 2 2 3 1, 0 9 2 , 4 0 2 1.0 9 2 , 4 0 2 30 . 8 1 3 . 0 9 1 $ (3 5 5 , 4 2 3 ) $ 12 , 5 9 5 , 2 7 6 $ 43 , 0 5 2 , 9 4 4 $ 2,5 8 4 . 8 9 4~19 , 0 4 3 . 1 5 1 24 , 0 0 9 , 7 9 3 2.2 6 1, 1 3 9 , 4 8 0 58 7 1, 1 4 0 , 0 6 7 80 , 7 0 7~68 4 , 9 9 0 . . 45 5 , 0 7 7 1 1 $ 1. 6 q ¡ 31 , 9 5 2 , 5 7 1 (3 5 4 , 8 3 6 )~44 , 1 9 3 , 0 1 1 2. 8 4 , 6 0 1~19 . 7 2 8 , 1 4 1 Re g u l a r i n c o m e L i m i t e d i n c o m e po r t o l i o p o r t o l i o O v e r a l l p o r t o l i o 24 , 4 8 4 , 8 7 0 2, 2 4 31 , 9 5 2 , 5 7 1 (3 5 4 , 8 3 6 31 , 5 9 7 , 7 3 5 2, 5 8 4 , 8 9 4 $ 4, 7 2 1 , 8 8 1 $ 7,2 8 6 , 7 7 5 $ 23 , 1 7 0 , 8 9 3 4. 1 8 $~$ 1,1 3 9 , 4 8 0 58 7= 1,1 4 0 , 0 6 7 2,8 4 , 6 0 1~7,9 7 1 . 7 8 5 Re g u l a r i n c o m e L i m i t e d i n c o m e po r t o l i o p o r t o l i o O v e r a l l p o r t o l i o 23 . 6 2 5 , 9 7 0 3.9 6 80 . 7 0 7~68 4 , 9 9 0 45 5 , 0 7 7 1 1 $ 1.6 6 21 , 8 4 . 9 5 6~28 , 8 4 9 , 6 2 5 29 . 4 4 0 , 2 7 9~42 , 0 3 5 , 5 5 5 $~$ 13 , 9 5 8 . 1 4 6~8,7 9 0 , 7 9 4 12 , 4 8 4 , 6 1 0 1. 4 7 1,4 8 1 ' 5 ~ ~ $ 13 , 9 4 6 . 1 8 2 1.5 3 Re g u l a r I n c o m e l i m i t e d i n c o m e R e g u l a r i n c o m e L i m i t e d i n c o m e po r t o l i o p o r t o l i o O v e r a l l p o r t l i o p o r t o l i o p o r t o l i o O v e r a l l p o r t o l i o ~28 , 5 2 2 , 2 7 2 El e c t c p r o g r a m l o s t e l e c t r i c r e v e n u e P V $ Ele c t i c p r o g r a m n o n - l n c e n t v e u t l l t y c o s t Ele c r i c p r o r a m i n c e n t i v e u t i l t y c o TO T A L N O N - P A R T I C I P A N T C O S T S NE T N O N - P A R T I C I P A N T B E N E F I T S 10 N - P A R T I C I P A N T B E N E F I T I C O S T R A T I O 15 . 5 6 5 , 1 3 0 86 1 . 5 7 1~19 , 1 0 7 , 2 0 3 (7 , 2 7 5 , 8 8 1 ) 0.8 2 1,1 7 0 , 2 6 1 1,1 7 0 , 2 6 1 1,7 2 2 , 1 6 7 ~ 62 , 8 4 7 $ 73 7 , 8 0 0 $ 2, 5 2 2 , 6 1 4 1 f (1 , 3 5 2 . 3 5 3 ~ 1 $ 0. 4 q ¡ 13 , 2 4 4 , 2 4 0 2.9 1 Ov e r a l l p o r t o l i o ~13 , 0 0 1 , 5 8 3 17 , 2 8 7 , 2 9 7 92 4 , 2 1 8~21 , 6 2 9 , 8 1 7 (8 , 6 2 8 . 2 3 4 ) 0.6 0 $ 1 2 , 4 3 7 , 0 8 7 $ 1 2 , 4 3 7 , 0 8 7 14 . 8 2 0 , 9 7 1 $ 89 3 , 7 0 2 $~17 . 0 8 1 . 5 8 4 $ (4 , 8 4 , 4 9 7 ) $ 0. 7 3 ~88 3 . 1 7 9 1,3 0 5 . 1 8 4 $ 68 , 3 4 0 $ 56 7 , 7 1 9 $ 1, 9 4 1 , 2 4 3 1 1 $ (1 , 0 5 8 , 0 B h 0. 4 5 1 ~13 , 3 2 0 , 2 8 6 15 , 9 2 6 , 1 5 5 98 2 , 0 4 2~19 , 0 2 2 , 8 2 7 (5 . 7 0 2 , 5 8 1 ) 0.7 0 ~25 , 4 7 5 , 7 2 6 $ 2 5 , 0 0 9 , 8 4 6 $ 1 , 3 2 0 , 0 0 $ 5 , 8 8 7 , 1 7 4 $ 3 2 , 2 1 8 , 8 2 5 (6 , 7 4 1 , 0 9 9 ) $ 0,7 9 Sl a f f _ P R _ 0 8 8 - A t t a c h m e n t A . x l s (7 9 6 , 3 9 8 ~ 1 $ 0. 5 7 \ 26 , 4 9 0 , 8 7 1 1, 3 7 0 , 0 8 8~34 , 0 5 9 , 7 6 9 (7 , 5 3 7 , 4 9 7 ) 0.7 8 16 . 9 6 , 4 2 9 2. 9 3 1, 0 9 2 ' 4 ~ ~ $ 18 , 0 5 8 , 8 3 1 3. 0 5 ~19 , 4 1 2 , 8 4 8 Re g u l a r i n c o m e L i m i t e d i n c o m e po r t o l i o p o r t o l i o O v e r a l l p o r t o l i o ~20 . 1 2 5 . 8 2 6 $ 2 2 , 5 9 1 . 9 3 6 $ $ 1 , 9 8 7 , 2 2 6 $ $ 4 . 5 3 9 , 0 2 1 $ $ 2 9 . 1 1 8 . 1 8 3 $ (9 , 7 0 5 , 5 3 5 ) $ 0, 6 7 ~71 2 , 9 7 8 1, 0 7 2 , 0 3 7 $ 33 , 7 8 5 $ 82 8 , 3 3 1 $ 1. 7 3 4 . 1 5 3 $ 23 . 6 8 3 , 9 7 3 2,0 2 1 , 0 1 1~30 . 6 5 2 , 3 3 6 (1 , 0 2 1 . 1 7 5 ~ 1 $ ( 1 0 , 7 2 6 , 7 1 0 ) 0, 4 1 1 0 . 6 5 28 , 1 5 2 . 4 4 7 $ 12 , 5 9 5 , 2 7 6 $ 40 , 7 4 7 . 7 2 3 $ 16 , 4 7 8 . 2 5 7 $ (4 , 7 2 1 , 8 8 1 ) $ 11 . 7 5 8 , 3 7 6 $ 28 , 9 9 1 , 3 4 7 3.4 7 1. 2 8 7 , 8 3 1,2 8 7 , 8 3 2 1,2 8 7 , 8 3 1 1 $ 3 0 , 2 7 9 , 1 7 9 NA 3 . 5 8 ~30 , 8 1 3 , 0 9 1 Re g u l a r I n c o m e L i m i t e d i n c m e po r t o l i o p o r t o l i o O v e r a l l p o r t o l i o 28 . 7 8 2 , 4 7 5 2, 5 8 4 , 8 9 4~36 . 0 6 9 , 2 5 0 (5 , 2 5 6 . 1 5 9 ) $ 0.8 5 1, 1 3 9 , 4 8 0 $ 3 1 , 9 5 2 , 5 7 1 1, 1 3 9 , 4 8 0 I $ 3 1 , 9 5 2 . 5 7 1 1, 2 8 7 , 7 5 8 $ 80 , 7 0 7 $ 60 4 , 2 8 3 $ 1,9 7 2 , 7 4 8 $ (8 3 3 , 2 6 8 ~ $ 0.5 ~ 1 Pa g e 2 o f 2 30 . 0 7 0 , 2 3 3 2, 8 4 , 6 0 1~38 . 0 4 1 , 9 9 8 (6 , 0 8 9 , 4 2 7 ) 0, 8 4 . AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JUSDICTION: CASE NO: REQUESTER: TYPE: REQUEST NO.: IDAHO A VU-E-08-01 / A VU-G-08-01 IPUC Production Request Staff-091 DATE PREPARD: WITNSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/06/08 Elizabeth Andrews Jeane Pluth State & Federal Reg. (509) 495-2204 REQUEST: Please provide a schedule of Injures & Damages for the years 2003-2007, and 2008 forecasted. RESPONSE: Actual claims paid for the years requested follows: Electric Gas Year Washington Idaho Total Washington Idaho Total 2002 315,746 617,859 933,605 56,403 11,278 67,681.2003 71,525 78,015 149,540 18,018 81,242 99,260 2004 58,871 291,950 350,821 22,292 13,964 36,256 2005 127,808 55,027 182,835 17,372 8,033 25,405 2006 645,996 223,631 869,627 24,876 7,844 32,720 2007 815,064 67,456 882,520 12,656 119,316 131,972 6 yr Avg 339,168 I 222,323 I 561,491 I 25,269 I 40,279 I 65,549 I . The budgeted accrual for 2008 was $197,200 for Washington/Idaho electrc and $125,200 for Washington/Idaho gas. The Company does not forecast actual claims payments. . . . A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JUSDICTION: IDAHO CASE NO: A VU-E-08-01 / A VU-G-08-01 REQUESTER: IPUC TYPE: Production Request REQUEST NO.: Staff-094 REQUEST: DATE PREPARD: WITSS: RESPONDER: DEP ARTMENT: TELEPHONE: 06/06/08 Liz Andrews Theresa Melvin State & Federal Regulation (509) 495-8165 Please provide the amount of the anual salary adjustment (percentage of pay) for the past ten years for non-officer employees. Please separate the increases for the bargaining unit employees from the non-bargaining unit employees. RESPONSE: Please see Avista's response 094C, which contains TRAE SECRET, PROPRIETARY or CONFIDENTIAL information and exempt from public view and is separately filed under IDAP A 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code, and pursuant to the Protective Agreement between Avista and IPUC Staff dated March 13,2008. . . . AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JUSDICTION: CASE NO: REQUESTER: TYPE: REQUEST NO.: IDAHO A VU-E-08-011 A VU-G-08-01 IPUC Production Request Staff-1 00 REQUEST: DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/06/08 Elizabeth Andrews Cindy Healy Finance (509) 495-2077 Please provide the calculation resulting in Avista's reported O&M costs per customer of $280.92 and $280.65 for 2006 and 2007, respectively. Please highlight any O&M accounts that are excluded from the calculation and explain the rationale for such exclusion. RESPONSE: The O&M Costs per Customers for the incentive plan were $265.64 for 2006 and $280.65 for 2007. These were calculated as follows: Incentive Calculation: O&M (500-935 accounts) Adjustments: Resource Costs (See Resource Acct Tab) Pacesetters Payroll Accrual Incentive Accrual AR Sale Gain or loss on Sale of land Liheap Credits Booz Allen Study Bain Study Major Storm Overtime Property Tax Study Other Accounting Adjustments Total Adjustments O&M Available for Incentive Year-End Customers Costs per Customer Rounding Adjustment Costs per Customer Page 1 of2 2006 (OOO's) $ 947,969 $ 2007 (OOO's) 978,200 $ 766,097 784,748 281 142 86 260 6,140 2,942 3,191 1,760 (34)141 0 591 (275)0 0 579 0 349 0 300 (270)513 775,216 792,325 172,753 $185,875 650,235 662,260 265.68 $280.67 -0.04 -0.02 265.64 $280.65 $ $ The Resource Cost Accounts deducted from costs: 501110 547310 555630 555820 557162 804000 804700 805980.501120 547610 555640 555830 557170 804001 804820 805990 501140 555000 555650 555840 557270 804014 804840 808000 501160 555010 555660 555850 557280 804017 804999 808100 547000 555020 555670 555860 557290 804140 805000 808200 547200 555140 555680 555870 557370 804170 805110 808320 547211 555380 555700 555880 557380 804310 805120 808330 547213 555510 555710 555990 557390 804450 805270 908250 547216 555520 555750 557150 557700 804470 805300 908600 547250 555550 555810 557160 565000 804550 805680 908690 557161 565710 804600 . Description of Adjustments: 1. Pacesetters - The budget for pacesetters is in the Corporate Finance budget, but the actual transactions are incurred by the deparents as the awards are given out. Since the deparent does not have a budget to match to the expense these items are excluded. The budget for pacesetters is Z90 - 09900162. All earnings code E52 expense transactions are excluded. 2. Incentive Accrual - The O&M costs used for the incentive calculation include a projection of the incentive payout. Since the projection is already in the cost per customer calculation the accrual is excluded. The transactions come through Z90 - 09905034. 3. Payroll Accrual - All Z89 transactions are excluded for FERC Accounts 500-935. 4. AR Sale - W54 is used for the AR sales entries as well as the Rathdrm amortization. The Rathdru amortization is a very small piece of the total amount that we left all of the dollars in the AR line. 5. LIHEAP Credits - FERC Account 908610 entres are excluded. 6. Major Storm Overtime - Major storms are removed for the SAFI and CAFI calculation so the determination was made that the overtime from these events should be excluded from the incentive calculation. The overtime is calculated by the Spokane Constrction departent. 7. Rain Study - This study was implemented by senior management. It was not planned or budgeted for 2007 and therefore the O&M costs were excluded from the incentive calculation. 8. Property Tax Study - Since the anticipated benefits of this study are $1,000,000, the $300,000 cost was accepted as one time exclusion. 9. Other Accounting Adjustments - Some expenses and credits have been centralized in order to encourage managers to manage their O&M expenses. X57, Z57 and X54 transactions are par of the other exclusions. X57 consolidated project accounting adjustments. Z57 is consolidated constrction work credits, X54 is primarly DJ 115 which accounts for the Benefits tre-up entres. . Page 2 of2 . . . JUSDICTION: CASE NO: REQUESTER: TYPE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-0l 1 A VU-G-08-01 IPUC Production Request Staff-1 07 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/06/08 Wiliam Johnson Wiliam Johnson Power Supply (509) 495-4046 What is the current average cost per kWh for energy generated from the five hydroelectrc projects? RESPONSE: The estimated average cost per kWh for energy generated from the five hydroelectrc projects without any relicensing revenue requirement is $24.97 per MW. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION IDAHO A VU-E-08-01 1 A VU-G-08-01 IPUC Production Request Staff-1 08 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/06/08 Wiliam Johnson Wiliam Johnson Power Supply (509) 495-4046 What is the estimated cost per kWh for energy generated from the five hydroelectric projects if the relicensing costs requested by the company in this case are included in rates? RESPONSE: The estimated average cost per kWh for energy generated from the five hydroelectric projects without any relicensing revenue requirement is $24.97 per MW. The anual revenue requirement, net of the production property adjustment, requested in this case due to relicensing the five Spokane River hydroelectric projects (excluding Little Falls) is $2,518,000. This equals to a system revenue requirement of $7,110,986, which, when divided by the anual generation of 889,327 MWh per year, results in increased cost of$8.00 per MW. Adding $8.00 per MWh to the cost of the projects without relicensing costs results in a total estimated cost of $32.97 per MW for the five hydroelectric projects if the relicensing costs requested by the company in this case are included in rates. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION IDAHO A VU-E-08-01 1 A VU-G-08-01 IPUC Production Request Staff-Ill DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/05/08 Don Kopczynski Amanda Reinhardt Customer Service (509) 495-7941 How many A vista customers who were assessed a deposit in 2007 had received LIHAP funds within the previous 12 months? RESPONSE: Within the previous 12 months, 348 Idaho customers who were assessed a deposit in 2007 received LIHEAP funds. . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.:. REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION IDAHO A VU-E-08-01 1 A VU-G-08-01 IPUC Production Request Staff-117 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/05/08 Don Kopczynski Amanda Reinhardt Customer Service (509) 495-7941 How many Idaho customers were signed up for Moratorium protection from disconnection in each of the last 4 calendar years (2004-2007)? RESPONSE: Idaho customers enrolledin Moratorium: Year # of Accounts sianed up for Moratorium 2004 - 2005 2,772 2005 - 2006 2,208 2006 - 2007 2,614 2007 - 2008 2,635 . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION IDAHO A VU-E-08-011 A VU-G-08-01 IPUC Production Request Staff-118 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/05/08 Don Kopczyski Amanda Reinhardt Customer Serice (509) 495-7941 How many of those customers who declared the need for Moratorium protection were placed on the Winter Payment Plan? RESPONSE: Below is a summary of Idaho customers who enrolled on a Winter Payment Plan: # of Accounts enrolled on a Year Winter Payment Plan 2004 - 2006 818 2006 - 2007 337 2007 - 2008 391 . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-011 A VU-G-08-01 IPUC Production Request Staff-120 DATE PREPARD: WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: 06/05/08 Don Kopczynski Amanda Reinhardt Customer Servce (509) 495-7941 How does A vista educate and inform customers of the availability of protection from disconnection durng winter months and availability of the Winter Payment Plan? Please provide copies of any written brochures or documents sent or otherwise provided to customers. RESPONSE: Accounts that receive past due or final notices during the enrollment period for either the Winter Payment Plan or Winter Moratorium are provided an insert regarding the programs with the notice. The customers that enroll are notified oftheir enrollment prior to the end of the program, and again when the end of the program is approaching. Please see attachment "StafCPR_120-Attachment Apdt'. Wi n t e r t ) ' m e n t P l a n Mo r a t o r i u l 1 i I n f o r m a t i o n If y o u a r e y n a b l e t o p a y y o u r b i l l i n l u l l a n d h a v e c h i l d r e n . el d e r l y or i n f i r m i n t h e h o u s e h o l d , y o u m a y q u a l i f y f o r pr o t e c t i o n f r o m d i s c o n n e c t i o n o f s e r v i c e w i t h t h e W i n t e r Pa y m e n t P l a n o r M o r a t o r i u m d u r i n g t h e w i n t e r m o n t h s . Wi n t e r P a y m e n t P l a n Th e W i n t e r P a y m e n t P l a n o f f e r s a m o n t h l y p a y m e n t ar r a n g e m e n t e q u a l t o o n e . h a l f o f y o u r l e v e l p a y am o u n t du r i n g t h e m o n t h s o f N o v e m b e r , D e c e m b e r , J a n u a r y , Fe b r u a r y a n d M a r c h . T h e l e v e l p a y a m o u n t i s b a s e d o n t h e av e r a g e m o n t h l y b i l l i n g + 1 / 1 2 o f y o u r a c c o u n t b a l a n c e . Y o u mu s t m a k e y o u r m o n t h l y p a y m e n t s e a c h m o n t h a n d b y A p r i l 1 y o u m u s t e i t h e r p a y y o u r a c c o u n t b a l a n c e o r n e g o t i a t e a ne w p a y m e n t a r r a n g e m e n t . Wi n t e r M o r a t o r i u m Th e W i n t e r M o r a t o r i u m w i l l p r o v i d e p r o t e c t i o n f r o m ~ d i s c o n n e c t i o n d u r i n g t h e m o n t h s o f D e c e m b e r , J a n u a r y a n d i= l F e b r u a r y . D u r i n g t h i s ( J I~ t i m e . a n y p a y m e n t P l e a s e c a l l u s i f y o u a r e h a v i n g ~ t o w a r d s y o u r u t i l i t y t r o u b l e p a y i n g y o u r b i l . ~ b i l l w i l l h e l p r e d u c e ~ t h e b a l a n c e d u e b y M a r c h 1 . W e e n c o u r a g e y o u t o c o n t i n u e 3" t o m a k e r e g u l a r m o n t h l y p a y m e n t s . (1 ;: O t h e r P a y m e n t A r r a n g e m e n t s "8 W e c o n t i n u e t o o f f e r a v a r i e t y o f o t h e r t y p e s o f a r r a n g e m e n t s .. t o h e l p y o u p a y y o u r u t i l i t y b i l L . . C o m f o r t L e v e l B i l l i n g - A v e r a g e m o n t h l y b i l l + 1 / 1 2 o f yo u r c u r r e n t b a l a n c e . C u r r e n t B i l l + - K e e p y o u r b i l l s c u r r e n t w h i l e p a y i n g a po r t i o n o f t h e p a s t d u e b a l a n c e u n t i l i t i s p a i d . S h o r t t e r m a r r a n g e m e n t s - I f y o u n e e d j u s t a l i t t l e m o r e ti m e . P r e f e r r e d P a y D a y - I f t h e d u e d a t e o f y o u r b i l d o e s n o t wo r k f o r y o u . w e c a n c h a n g e i t Fi n a n c i a l A s s i s t a n c e Yo u m a y al s o b e e l i g i b l e f o r a s s Î s t a n c e p a y i n g y o u r u t i l i t y b i l l "' f r o m a l o c a l a g e n c y i n y o u r a r e a . II(0(1 Fo r m o r e i n f o r m a t i o n , p l e a s e c a l l 1- 8 0 0 - 2 2 7 - 9 1 8 7 . aoi .J i J V I S T A ' ww w . a v i s t a u t i l i i i e s . c o m 11 0 7 1 2 3 3 5 6 Wi n t e r p a y m e i l i a n M o r a t o r i u i i i l n f o n n a t i o n If y o u a r e u n a b l e t o p a y y o u r b i l i n f u l l a n d h a v e c h i l d r e n , eld e r l y or i n f i r m i n t h e h o u s e h o l d , y o u m a y q u a l i f y f o r pr o t e c t i o n f r o m d i s c o n n e c t i o n o f s e r v i c e w i t h I h e W i n t e r Pa y m e n t P l a n o r M o r a t o r i u m d u r i n g t h e w i n t e r m o n t h s . Wi n t e r P a y m e n t P l a n TI i W i n t e r P a y m e n t P l a n o f f e r s a m o n t h l y p a y m e n t ar r a n g e m e n t e q u a l to o n e - h a l f o f y o u r l e v e l p a y am o u n t du r i n g t h e m o n t h s o f N o v e m b e r . D e c e m b e r , J a n u a r y , Fe b r u a r y a n d M a r c h . T h e l e v e l p a y a m o u n t i s b a s e d o n t h e av e r a g e m o n t h l y b i l l n g + 1 / 1 2 o f y o u r a c c o u n t b a l a n c e . Y o u mu s t m a k e y o u r m o n t h l y p a y m e n t s e a c h m o n t h a n d b y A p r i l 1 y o u m u s t e i t h e r p a y y o u r a c c o u n t b a l a n c e o r n e g o t i a t e a ne w p a y m e n t a r r a n g e m e n t . Wi n t e r M o r a t o r i u m Th e W i n t e r M o r a t o r ì u m w i l l p r o v i d e p r o t e c t i o n f r o m di s c o n n e c t i o n d u r i n g t h e m o n t h s o f D e c e m b e r , J a n u a r y a n d Fe b r u a r y . D u r i n g t h ì s ( J ti m e . a n y p a y m , e ~ t P l e a s e c a l l u s i f y o u a r e h a v i n g . to w a r d s y o u r u t i l i t y t r o u b l e p a y i n g y o u r b i l . bi l l w i l l h e l p r e d u c e th e b a l a n c e d u e b y M a r c h 1 . W e e n c o u r a g e y o u t o c o n t i n u e to m a k e r e g u l a r m o n t h l y p a y m e n t s . Ot h e r P a y m e n t A r r a n g e m e n t s We c o n t i n u e t o o f f e r a v a r i e t y o f o t h e r t y p e s o f a r r a n g e m e n t s to h e l p y o u p a y y o u r u t i l i t y b i l l . . C o m f o r t L e v e l B i l i n g - A v e r a g e m o n t h l y b i l l + 1 / 1 2 o f yo u r c u r r e n t b a l a n c e . C u r r e n t B i l l + - K e e p y o u r b i l l s c u r r e n t w h i l e p a y i n g a po r t i o n o f t h e p a s t d u e b a l a n c e u n t i l i t i s p a i d . S h o r t t e r m a r r a n g e m e n t s - I f y o u n e e d j u s t a l i t t e m o r e ti m e . P r e f e r r e d P a y D a y - I f t h e d u e d a t e o f y o u r b i l l d o e s n o t wo r k f o r y o u , w e c a n c h a n g e i t Fi n a n c i a l A s s i s t a n c e Yo u m a y a l s o b e e l i g i b l e f o r a s s i s t a n c e p a y i n g y o u r u t i l t y b i l l fr o m a l o c a l a g e n c y i n y o u r a r e a . Fo r m o r e i n f o r m a t i o n , p l e a s e c a l l 1 - 8 0 0 - 2 2 7 - 9 1 8 7 . ww w . a v i s t a u t i l i t i e s . c o m l1 t l 7 2 J 3 5 6 VI S T A ' Wi n t e r P a y m e n t P l a n . Mo r a t o r i u l t l b i f o r i i i a t i o i i If y o u a r e u n a b l e t o p a y y o u i b i l l i n f u l l a n d h a v e c h i l d r e n , el d e r l y o r i n f i r m i n t i i e h o u s e h o l d , y o u m a y q u a l i f y f o r pr o t e c t i o n f r o m d i s c o n n e c t i o n o f s e r v i c e w i t h t h e W i n t e r Pa y m e n t P l a n o r M o r a t o r i u i n d u r i n g t h e w i n t e r m o n t h s . Wi n t e r P a y m e n t P l a n Th e W i n t e r P a y m e n t P l a n o f f e i s a m o n t h l y p a y m e n t ar r a n g e m e n t e q u a l t o o n e - h a l f o f y o u r l e v e l p a y am o u n t du r i n g t h e m o n t h s o f N o v e m b e r , D e c e m b e r , J a n u a r y , Fe b r u a r y a n d M a r c h . T h e l e v e l p a y a m o u n t i s b a s e d o n t h e av e r a g e m o n t h l y b i l i n g + 1 / 1 2 o f y o u r a c c o u n t b a l a n c e . Y o u mu s t m a k e y o u r m o n t h l y p a y m e n t s e a c h m o n t h a n d b y A p r i l 1 y o u m u s t e i t h e r p a y y o u r a c c o u n t b a l a n c e o r n e g o t i a t e a ne w p a y m e n t a r r a n g e m e n t . Wi n t e r M o r a t o r i u m Th e W i n t e r M o r a t o r i u m w i l l p r o v i d e p r o t e c t i o n f r o m di s c o n n e c t i o n d u r i n g t h e m o n t h s o f D e c e m b e r . J a n u a r y a n d Fe b r u a r y . D u r i n g t h i s ( J ti m e , a , n y p a y m ~ ~ t P l e a s e c a l l u s i ! y o u a r e h a v i n g to w a r d s y o u r u t i l i t y t r o u b l e p a y i n g y o u r b i l . bi l l w i l h e l p r e d u c e th e b a l a n c e d u e b y M a r c h 1 , W e e n c o u r a g e y o u t o c o n t i n u e to m a k e r e g u l a r m o n t h l y p a y m e n t s . Ot h e r P a y m e n t A r r a l J g e m e n t s We c o n t i n u e t o o f f e r a v a r i e t y o f o t h e r t y p e s o f a r r a n g e m e n t s to h e l p y o u p a y y o u r u t i l i t y b i l l . . C o m f o r t L e v e l B i l l i n g - A v e r a g e m o n t h l y b i l + 1 / 1 2 0 1 yo u r c u r r e n t b a l a n c e . C u r r e n t B i l l + - K e e p y o u r b i l l s c u r r e n t w h i l e p a y i n g a po r t i o n o f t h e p a s l d u e b a l a n c e u n t i l i t i s p a i d . S h o r t t e r m a r r a n g e m e n t s - I f y o u n e e d j u s t a l i t t l e m o r e ti m e . P r e f e r r e d P a y D a y - I f t h e d u e d a t e o f y o u r b i l l d o e s n o t wo r k f o r y o u , w e c a n c h a n g e i t Fi n a n c i a l A s s i s t a n c e Yo u m a y a l s o b e e l i g i b l e f o r a s s i s t a n c e p a y i n g y o u r u t i l i t y b i l l fr o m a l o c a l a g e n c y i n y o u r a r e a . Fo r m o r e i n f o r m a t i o n , p l e a s e c a l l 1- 8 0 0 - 2 2 7 - 9 1 8 7 . ww w . a v i s t a u t i l i t i e s . c o m 11 0 7 1 2 3 3 5 6 VI S T A ' . . . June 6,2008 RE: Account Number Service Address Dear Thank you for enrolling in the Winter Payment Plan. Our records indicate that you are unable to pay your bil in full, and have children, elderly or infirmed in your household, which makes you eligible for this plan. Your account has been enrolled on the Winter Payment Plan as of The Winter Payment Plan is a monthly payment arrangement offered during the months of November, December, January, February and March. The Winter Payment Plan amount to be paid monthly is $ Payment is due monthly by the regular due date, or the date previously agreed upon with a Customer Service Representative. Any balance remaining after your March payment will come due on April 1, 2008. Once again, thank you for your participation in this program. Sincerely, Your Customer Service Team StafCPR_120-Attachment A.pdf Page 2 of 5 . . . June 6,2008 RE: Account Number Service Address Dear Our records indicate that you are unable to pay your bil in full, and have children, elderly or infirmed in your household. This letter confirms that your account has been set on the Winter Moratorium as of The Winter Moratorium provides protection from disconnection of service during the winter months beginning December 1, 2007 through February 28, 2008. We encourage you to continue to make regular monthly payments during this time. Any outstanding balance will be due in full on March 1, 2008. Sincerely, Your Customer Service Team StafCPR_120-Attachment A.pdf Page 3 of 5 . . . Im p o r t a n t N o t i c e ¡¡I~lJ I~No ~g.3CD~:i -0 S; Ou r r e c o r d s i n d i c a t e y o u r p a r t i c i p a t i o n i n t h e W i n t e r P a y m e n t P l a n . We w a n t e d t o r e m i n d y o u t h a t t h e p r o g r a m e n d s o n A p r i l l , 2 0 0 8 . Yo u m u s t p a y y o u r a c c o u n t b a l a n c e o r n e g o t i a t e n e w p a y m e n t ar r a n g e m e n t s a t t h a t t i m e . If y o u h a v e a n y q u e s t i o n s r e g a r d i n g y o u r a c c o u n t o r t h e W i n t e r Pa y m e n t P l a n , p l e a s e c a l l C u s t o m e r S e r v i c e a t 1 - 8 0 0 - 2 2 7 - 9 1 8 7 . Th a n k y o u , A v i s t a C u s t o m e r S e r v i c e ~toCD..2-oi .Important Notice Our records indicate your participation in the Idaho Moratorium. We wanted to remind you that the program ends on February 29, 2008. It is necessary to have your account paid in full by that date or have negotiated acceptable payment arrangements. If you have any questions regarding your account or the Idaho Moratorium, please call Customer Service at i -800-227 -9 i 87. Than you, Your A vista Customer Service Team Important Notice.Our records indicate your paricipation in the Idaho Moratorium. We wanted to remind you that the program ends on February 29,2008. It is necessary to have your account paid in full by that date or have negotiated acceptable payment arrangements. If you have any questions regarding your account or the Idaho Moratorium, please call Customer Service at 1-800-227-9187. Thank you, Your A vista Customer Service Team . StafCPR_120-Attachment A.pdf Page 5 of 5 . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-011 A VU-G-08-01 IPUC . Production Request Staff-121 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/03/08 Bruce Folsom Lori Hermanson Energy Solutions (509) 495-4658 How much money did A vista provide for weatherization programs in Idaho for each of the past 4 years (2004-2007)? By year, please identify the number of recipients and the average dollar amount received for weatherization puroses. RESPONSE: . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION IDAHO A VU-E-08-011 A VU-G-08-01 IPUC Production Request Staff-125 DATE PREPARD: WITESS: RESPONDER: DEPARTMENT: TELEPHONE: 06/06/08 Clint Kalich James Gall Energy Resources (509) 495-4532 Please provide electric and natural gas forward prices for 2009 contract months as reported daily for all settlement dates during the period January 1, 2007 through the present for each of the locations included in the forward price data previously provided in the workpapers of Clint Kalich. Please provide the data in an electronic Excel format. Please include any analysis used to prepare, adjust or modify the data for use in AURORA. Please cite the source for the price data and discuss any adjustments or assumptions made by A vista in preparng the data. RESPONSE: Please see Avista's response 125C, which contains TRAE 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, and pursuant to the Protective Agreement between Avista and IPUC Staff dated March 13,2008. . . . JUSDICTION: CASE NO: REQUESTER: TYPE: REQUEST NO.: REQUEST: A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION IDAHO A VU-E-08-011 A VU-G-08-01 IPUC Production Request Staff-126 DATE PREPARD: WITSS: RESPONDER: DEP ARTMENT: TELEPHONE: 06/06/08 Clint Kalich James Gall Energy Resources (509) 495-4532 Why were natural gas price monthly forwards from October 1, 2007 through December 31, 2007 used to derive the pro forma period natural gas prices used in the AURORA analysis (as opposed to using some other source or period of time)? RESPONSE: AURORA studies were completed in early Februar, 2008. The development of the AURORA files began in December, 2007. Prices ending in December were the latest available at that time. Further, three month average prices are used to align power costs consistent with recent regulatory orders in the State of Washington. In Washington State, the WUC commission ordered the use of 3-month average prices for the first time in the 2004 Puget Sound Energy Rate Proceeding (DOCKET NOS. UG-040640 and UE-040641 (consolidated) ORDER NO. 06); later cases for all jurisdictional utilities have followed this method, including cases filed by Avista in 2005, 2007, and 2008. . . . JUSDICTION: CASE NO: . REQUESTER: TYPE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION IDAHO A VU-E-08-01 I A VU-G-08-01 IPUC Production Request Staff-127 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/06/08 Clint Kalich James Gall Energy Resources (509) 495-4532 In the direct testimony of Clint Kalich at page 9, lines 6-8, he states "Natural gas prices are modified to ensure prices across the Western Interconnect are consistent with changes made to the Northwest." Please explain how the natural gas prices are modified. RESPONSE: Prices from the default AURORA database are modified to reflect the 3- month average prices for each major gas basin in the Western Interconnect. . . . AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO A VU-E-08-01 I A VU-G-08-01 IPUC Production Request Staff-128 DATE PREP ARD: WITSS: RESPONDER: DEPARTMNT: TELEPHONE: 06/06/08 Clint Kalich James Gall Energy Resources (509) 495-4532 REQUEST: Please explain why 50 years of hydro data were used for A vista's AURORA power supply modeling, rather than 70 years of hydro data. Provide a comparson of the power generation and power cost results obtained using 70 water years in a format similar to that used in Kalich's Exhibit No.5. RESPONSE: The company decided to file 50 years of data between 1928/29 and 1977/78 to align with the company's 2008 Washington rate filing. The WUTC ordered Puget Sound Energy in a 2004 rate proceeding (DOCKET NOS. UG-040640 and UE-040641 (consolidated) ORDER NO. 06) to use this method. Note: the 70 year study does not include the hydro rate mitigation and should be compared to the study referenced in question 7. The attached file "Staff_PR_128-Attachment AxIs" is the comparable Exhibit NO.5 and "StafCPR_128-Attachment B.xls" is a summary of the difference between 70 & 50 year hydro history averages. Further, hydro years prior to 1978 are the same in the 50 year and 70 year studies on an anual energy basis except for trivial differences in the BC area on a monthly basis. The change to 70 year hydro rather than 50 year would decrease system power supply costs by $1,195,135, and Idaho's share by approximately 1/3 ofthis amount. . . . 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JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION IDAHO A VU-E-08-01/ A VU-G-08-01 IPUC Production Request Staff-129 DATE PREPARD: WITESS: RESPONDER: DEP ARTMENT: TELEPHONE: 06/06/08 Clint Kalich James Gall Energy Resources (509) 495-4532 Please provide the weather normalized 2007 and 2008 Avista system monthly actual loads, and the 2009 pro forma system load as used in AURORA. RESPONSE: The 2007 weather adjusted loads are provided in attached fie "StafCPR_129-Attachment AxIs". The 2007 weather adjustments for the AURORA file are attached in fie "Staff_PR_129-Attachment B.xls". Weather adjusted and actual load for 2008 is attached in fie "StafCPR_129-Attachment C.xls" through May 2008. . . . AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: IDAHO A VU-E-08-011 A VU-G-08-01 IPUC Production Request Staff-130 DATE PREPARD: WITNSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/06/08 Clint Kalich James Gall Energy Resources (509) 495-4532 REQUEST: Please identify any specific changes made to transmission capacities assumed in AURORA. RESPONSE: The only change to the AURORA default transmission logic is the removal of the COL and PDCI Phantom Congestion adjustment for the 2009 test period. The AURORA default database includes a 20% derate to the links between the NW and California. Below is Epis discussion on Phantom Congestion found in the AURORA help files: . Pacific AC and DC Intertie "Phantom Congestion": The phenomenon known as Phantom Congestion in the WECC is a result of contract rights to transmission not being exercised. For current information on this issue, search the CAISO web site for the string "Phantom Congestion". The CEC and wesTTrans are working with CAISO to alleviate the effects of this issue. . 2003 Anual Report on Market Issues and Performance . http://www.caiso.comldocs/2004/04115/2004041515420326428.html · see Executive Summary . see chapter 5. Interzonal Congestion Managment Market . To address phantom congestion effects, EPIS implemented a derate on the Pacific AC and DC Interties. Model users should make their own judgments regarding the current and long term effects of phantom congestion. . COL: 3760 MW wlo Phantom Congestion, 3000 MW with Phantom Congestion. . PDCI: 3100 MW w/o Phantom Congestion, 2000 MW with Phantom Congestion. . . . JUSDICTION: CASE NO: REQUESTER: TYPE: REQUEST NO.: REQUEST: AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMTION IDAHO A VU-E-08-01 I A VU-G-08-01 IPUC Production Request Staff-131 DATE PREPARD: WITESS: RESPONDER: DEPARTMENT: TELEPHONE: 06/06/08 Clint Kalich James Gall Energy Resources (509) 495-4532 Please provide AURORA summar output showing results if the "Avista Hydro Adjustment" is excluded. Provide the output in a format similar to that used in Kalich's Exhibit NO.5. RESPONSE: Removing the hydro adjustment increases power supply costs by $12,800,000 (system). The hydro adjustment adds 26.5 aMW to the historical record. The comparable exhibit No. 5 is attached as "Staff PR 131- Attachment AxIs" . . . JUSDICTION: CASE NO: REQUESTER: TYE: REQUEST NO.: REQUEST: A VISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION IDAHO A VU-E-08-011 A VU-G-08-01 IPUC Production Request Staff-132 DATE PREPARD: WITSS: RESPONDER: DEPARTMENT: TELEPHONE: 06/06/08 Clint Kalich James Gall Energy Resources (509) 495-4532 Please provide AURORA summar output showing results if a 2007 weather normalized system load is used rather than the 2009 pro forma system load. Provide the output in a format similar to that used in Kalich's Exhibit NO.5. RESPONSE: Using 2007 weather adjusted loads rather than 2009 pro forma loads wil lower power supply costs by $18,073,484 (system). This stems from a load reduction of35 aMW. The comparable exhibit NO.5 is attached as Staff PR 132-Attachment A.xls. Other adjustments would be made per the response to Staff Production Request No. 104. StafCPR _132-Attachment AxIs is being provided on the enclosed CD due to the electronic and voluminous natue of the file.