20100702AVU to Staff 108-109, 112-113, etc.pdf

Avista Corp.
1411 East Mission P.O. Box 31"7
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170 RE:CEfVED
~~'V'STJI'
Corp.
Z8l0 JUt - 2 lUi fO: l 8
July 1, 2010 iDAHO Pi ;;,0.UTlllTI¡:~ CÒiÚ4¡¿~It';.:-_'__ ifi,yitV\"fLJT'i
Idaho Public Utilties Commission
4 72 W. Washington
Boise, ID 83702-5918
Attn: Donald Howell & Krstine Sasser
Deputy Attorneys General
Re: Production Request of the Commission Staff in Case Nos. A VU-E-10-01 and
A VU-G-10-01
Dear Mr. Howell and Ms. Sasser,
Enclosed are an original and one copy 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 108, 109, 112, 113, 115, 117, 120, 126 - 130, 137 and 138. The production requests are
also being provided in electronic format on the CDs included in this mailng.
If there are any questions regarding the enclosed information, please contact me at (509) 495-
4584 or via e-mail atpaui.kimabll~avistacorp.com
Sincerel))/)~#
Paul Kimball
Regulatory Analyst
Enclosures
CC (Email): all paries electronic
.
.
.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
A VU-E-10-01 / A VU-G-1 0-01
IPUC
Production Request
Staff-1 08
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
06/25/2010
Elizabeth Andrews
Margie Stevens
Finance
[phone]
REQUEST:
The Company identified in its response to Production Request No. 17 that the Board of Directors
approves the capital expenditue budget. Please identify how the dollar amount approved is
determined. For example, is the amount approved a cern percentage of available financing and
if so, what is the percentage and how it is derved? Or, is the amount approved based upon the
dollar amount of projects submitted?
RESPONSE:
The capital expenditue level approved by the Board of Directors is a balance of a bottom-up
approach with a top-down approach. There is no predeterined formula that sets the capita
expenditue budget.
From a bottom-up approach, the Company has a Capital Budget Committee comprised of
employees representing varous deparents. The Capita Budget Commttee meets throughout
the year to review and adjust curent year capital expenditues and to prioritize futue capital
expenditue needs. While each deparent creates a list of capital expenditue needs, the entire
committee conducts a cross-deparental prioritization process to identify which projects will be
fuded at each level of a capital budget.
From a top-down approach, and concurent with the Capital Budget Committee's initiatives, the
Company regularly updates its financial forecast, incorporating changes in revenues and
expenditues and evaluating how those changes impact the need to access capital. From
time-to-time, the Company also evaluates how different levels of capital expenditues will impact
the forecast as well as the potential impact on customers' rates.
Ultimately, the Capital Budget Committee meets with senor management to discuss how the
projects are prioritized. That discussion includes a description of the projects that are both fuded
and unfuded at certai capital expenditue levels and considerations should projects remain
unfuded. Based on the both the bottom-up and top-down approach, combined with the meeting(s)
that merge the two efforts, senor management makes a recommendation to the Board of Directors
for a capital budget. There is no formula establishing the level, and many requested projects are not
funded each year.
.
.
.
A VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
AVU-E-10-01 1 AVU-G-I0-0l
IPUC
Production Request
Staff-1 09
DATE PREPARD: 06/30/2010
WISS: S. Morrs/D. Kopczyski
RESPONDER: Elizabeth Andrews
DEPARTMNT: State & Federal Reg.
TELEPHONE: [phone]
REQUEST:
Staffhas reviewed the Company's filed Application and testimony. Please identify in detail how
the Company's revenue requirement request has been reduced as a result of operational decisions
that eliminated and/or minimized operating and capital expenditue outlays in response to the
economic recession.
RESPONSE:
Although the curent and near-ter economic conditions are at the forefront of everyone's minds,
A vista has focused on managing its costs to mitigate rate pressure over a much longer perod of
time. Following the energy crisis of 2000/2001, Avista, among other thngs, cut its operatig
expenses and reduced capital spending.
Since that time, as we worked toward regaining an investment grade credit rating, we have
continued to pay paricular attention to limiting the growt in these costs, and A vista continues to
ru its operations with attention to mimizig expenses, while meeting important reliabilty and
environmental compliance requirements, and preserng a high level of customer satisfaction.
Listed below are examples of efforts to control costs:
Limtations on Capital Spending
Avista approved a lower capital budget than was requested for the Company's Engieering
and Operations personnel for the past two years. The origial capital projects requested for
approval for completion in 2009 and 2010 consisted of projects totaling over $270 milion
each year. The Capital Prioritization Committee reduced the list of projects recommended to
be completed by $70 milion to the $200 milion capita budget approved by the board in 2009
and by $60 milion to $210 milion in 2010.
Cancellation of Ross Court Office Space Project
Avista's main offce building was constrcted in 1958, and expanded in 1978. Even though
Avista's ratio of the number of customers served per employee continues to increase, we have
needed additional offce space for some time. In 2008, in order to reduce costs, we cancelled
plans to build additional offce space adjacent to the main offce, and instead chose to remodel
existig space formerly used by Horizon Credit Union nine miles from the main office.
Delay of Reardon Wind Project
The Company had considered developing the Reardon Wind Project staring in 2010, which
was a few years earlier than had been identified in the 2009 IR. The Company investigated
the potential to acquire the renewable resources a few years earlier in order to take advantage
of certain temporar tax credits though the American Recover and Reinvestment Act of
2009 and though a temporar Washington state sales tax offset program. After weighing the
Page 2
near-term costs impacts to our customers, the Company decided to postpone the acquisition of
this renewable resource..Long Term Debt Issuance
As explained fuer by Company witness Thies, in 2008 the Company opted to defer its plan
to issue $250 milion of long-term secured debt until 2009. A vista instead established a
second ban line of credit to ensure continued adequate liquidity. The Company's decision to
delay the debt issuance, and rely on short-term debt for a longer period of time, resulted in a
reduction of interest costs to customers by approximately $80 millon over a ten year perod
(approximately $8 milion anually). This benefit to customers is reflected in our filing.
Salaries & Benefits
Avista provided no salar increases for offcers in 2009 and reduced the Company's
non-officer average salar increase in 2009 from 3.8% to 2.5%. In the curent case, Avista
included no salar increases for offcers in 2011 and maitained ths reduced level (2.4%) for
the Company's non-offcer average salar increase.
Retirees are now picking up the full premium increases on the health insurance coverage. A
few years ago retirees under age 65 were paying 10% of the health insurance premiums and
now they pay 50% on average.
The Defined Benefit Pension Plan's benefit formulas were reduced (approximately 28%) for
all new hires effective Januar 1, 2006 and forward. This applies to all new hires except those
in the mEW Local #77 Bargaining Unit..In 2010, changes were made to the medical and dental plans offered to employees and retirees
that will lower costs. The Specialty Pharacy program is one example. Ths program
provides assistance to members takng expensive medications (average of$I,500 per month)
that result in better care management and also helps reduce cost to the member and the plan by
providing optimal discounts though the use of specialty pharacists and better management
means less drg waste. Another example is changes to our denta plan. Our curent plan
makes use of a Premier Provider Network, which historically averaged 3-5% discounts to our
claim dollars. In 2010, the dentists parcipating in the PPO program have agreed to deeper
discounts in the 15-17% range.
Hiring Restriction
The Company continues to operte under a hiring restrction which has been in place for the
past 18 month, which requires approval by the Chairman, President & CEO, CFO, and Sr. VP
for Human Resources for all replacement or new hire positions.
Power Supply
Avista took the initiative to quaify some of its Spokane River Projects as certified renewable
resources under California guidelines. Avista is now sellng the "green tags" from these
projects to Californa utilties at a premium. The additional value for customers from these
sales on a system basis was $5.8 milion in the previous year and $5.4 milion in the curent
rate case..Avista took the initiative to investigate and join the Chicago Climate Exchange, which has
allowed Avista to sell carbon excess credits through the Exchange. We are curently
.
.
.
Page 3
recognizing benefits of a total of $0.9 milion to Idaho customers over a two-year period as a
result of this effort.
Improvements and Efficiency Initiatives
A vista Utilties has underen a number of improvements and efficiency initiatives
thoughout our servce area that are focused on either increasing customer serce and
satisfaction, or increasing productivity and reducing operating costs. These measures have
sered to mitigate the impact on customers of the proposed rate increase. In regard to
Information Serces, A vista has been, and continues to be, focused on cost effective solutions
that meet our customers' needs. One way to meet a growing customer demand for tranaction
choices is though the appropriate use of technology. Most recently, Avista has focused on
reducing customer transaction costs though the use of technology, such as the Outáge
Management Tool (OMT) which enables a customer to report outages without talking to a
representative.
Customer Rate Impact Mitigation Efforts
In addition to the many efforts the Company has made to reduce costs and improve operating
effciencies, the Company works hard to build lasting ways to help mitigate or ease the burden
of energy costs. A vista is committed to reducing the burden of energy prices for our
customers most affected by rising energy prices, including low income individuals and
families, seniors, disabled and vunerable customers. To increase our customers' abilty to
pay, the company focuses on actions and programs in four priar areas: 1) advocacy for and
support of energy assistance programs providing direct financial assistance; 2) low income
and senior outreach programs; 3) energy effciency and energy conseration education and 4)
support of community programs that increase customers' abilty to pay basic costs of living.
Specific customer serce programs supported by Avista discussed fuer by Company
witness Kopczysi include Project Share, Low Income and Senior Outreach Programs,
Gatekeepers Program, Senior Energy Programs, etc.
These items are just examples of the extensive effort of A vista to identify and implement
effciency measures and/or productivity across the organzation, while continuing to provide
quality servce to customers.
"
.
.
.
.
A VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
06/23/2010
Scott Kinney
Tracy Rolstad
Transmission Planng
[phone]
IDAHO
AVU-E-I0-01 1 AVU-G-10-01
IPUC
Production Request
Staff-112
REQUEST:
According to Kiey's testimony, page 22, lines 9- 1 1, he stated the Company "goes though a
thorough internal review process that includes multiple stakeholder review" to address system
needs. If the Company has a standard document it uses durng ths review process, please provide
that document.
a. Please explain in detail how the Company evaluates each project and the
critera used in the evaluation such as project cost, system benefits and other
criteria.
b. Please include any analysis used by the Company to prioritize projects.
c. The review process identified the system needs based on NERC standards
but other projects not selected still have the potential for non-compliance. How
does the Company deal with those projects?
RESPONSE:
a. Projects are evaluated using the following metcs:
. Comprehensive system perormance and reliabilty over the entire life cycle of a
project.
. Total life cycle cost
. Constrctability
. Operational flexibility and maintenance
. Compliance requirements
Projects are weighed based on the above perormance metrcs, and are then prioritized based
on input from Planing, Operations, and Engineerng. Projects are discussed by Avista Staff
and then subsequently raned by need. Capital fuding is allocated to individual areas
including Transmission and Distrbution. Projects are then selected based on allocated fuds
and project raning.
b. As discussed in the response above, projects are prioritized by the factors shown above. The
Engineering, Planing and Operations deparents hold several joint meeting to discuss the
project needs and ranings and then select projects to fit within the allocated Capital budget for
Transmission and Distrbution projects.
Page i of2
.
.
.
c. Projects are raned in highest priority order. NERC compliance issues are but one metrc used
in the raning process. Other metrcs such as load servce, safety, etc are used as well as
NERC compliance standards and requirements. The Company strves for balance in
prioritizing projects. As the list of capital projects for 2010 shows, not all projects are being
constrcted to meet compliance requirements. Se'(eral projects wil improve system reliabilty
by replacing aged equipment.
Page 2 of2
.
.
.
AVISTACORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
AVU-E-IO-0l 1 AVU-G-lO-Ol
IPUC
Production Request
Staff-113
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
06/28/2010
Scott Kinney
Tracy Rolstad
Transmission Planng
[phone]
REQUEST:
Each of the Reliabilty Compliance Projects, the Lolo 230 kV Substation, SpokanelCoeur d' Alene
relay upgrade, Nez Perce 115 kV Substation Rebuild and Capacitor Ban, SCADA Replacement,
System Replace/Istall Capacitor Ban at Airway Heights, Airway Heights-Silver Lae 115 kV
Transmission Line, and Mos230-Pullman 115 Reconductor, are projects required to meet
reliabilty compliance requirements associated with NERC Standards. For each project identified
and justified based on meeting those stadards:
a Please describe the process and assumptions used to forecast violations ofNERC
reliability critera.
b. Please describe the natue of the actu or anticipated violation and penalties if the
project is not completed.
c. Please provide the alterative solutions considered to meet compliance
requirements and justify how the final solution is selected.
d. Please explain how the Company underakes the constrction of these projects to
assure reasonable cost of compliance requirements. Are the projects contracted
in-house, competitively bid or sole sourced?
e. Please quantify the impact of completing each of these projects to improve
reliabilty.
f. Please provide the schedule of these projects and the cost per year.
g. After completion of a project, is the Company required to fie documentation with
NERC to validate it has fufilled the reliabilty compliance requirement? If so,
please provide these documents. If not, how does NERC become aware of the
compliance?
RESPONSE:
a. See Section II of the Five and Ten Year Plan (StafCPR_I 10-Avista 5 and 10 year
plan-- 2009 _version 1. pdt). A vista simulates over 300 contingencies in 8 different
scenaros over the five and ten year planng horizon-these simulation (power flow,
voltage stabilty, and transient stabilty) results are then used to forecast futue electrcal
system perormance. The process and assumptions are discussed in detail in the varous
project study reports provided in StaffPR 111 and in the Five and Ten Year Plan provided
in StaffPR 110. The SCADA upgrade is required to ensure Avista has adequate control
and monitoring of its Transmission facilties and involves upgrading the program to the
latest version released by the third pary softare provider. The curent softare verion
wil no longer be supported by the vendor by the end of 20 10.
Page i of3
.
b. Avista can't predict either the natue of the violation or penalties, however, the fine
strctue is discussed in each of the NERC and WECC Standards. The severty level of the
standard and violation impacts the penalty leveL. There are other factors that influence the
penalty calculation such as the Company compliance program and cultue, whether the
violation was self-reported, and whether the violation was a first time or repeat offense.
c. All projects have at least two alteratives, i.e. do nothing, and the most reliable. Other
alternatives are developed and examined for comprehensive perormance and are
subsequently compared against the two standard alteratives. Long ter reliabilty in an
uncerain future and integration with other proposed projects tend to car more weight
when deciding on which alterative to execute. The project costs are also a factor in
selecting the prefered plan of serice.
d. All substation-related projects, including relay upgrades, communcation additions, and
capacitor installations, are usually constrcted in-house by Avista electrcians and
mechancal crews. Transmission projects are either perormed by A vista crews or
competitively bid based on resource availabilty, lengt of the project, and cost.
e. The quantitative impact (i.e. perormance improvement) is discussed in detail in the
relevant reports provided in StaffPR #1 1 1.
.
f. Lolo 230 kV Substation: Ths project was completed and placed into serce in Februar
2010. Tota 2010 spend to complete ths work was $272k.
SpokanelCoeur d'Alene Relay Upgrades: This ongoing multi-year project continues. In
2010, relay upgrades have bee completed for the Post St. - Thrd & Hatch 115 kV line. In
addition, the Coeur d' Alene area fiberoptic communcations infrastrctue has been
completed and is used and usefuL. Engineerng is complete for the Norteast Substation
115 kV line position to Beacon Substation. The Beacon 115 kV line position to Norteast
and Beacon Bus Relaying are presently in design as of June 28. Design may begi for the
remaining two line positions at Thrd & Hatch and the associated remote terinals at Ross
Park and Ninth & Central Substations later this year. Total 2010 spend as of May 31 is
$324,000 and the budgeted expected spend is $1,250,000 in 2010. To complete the next
phases ofthe project, $1,250,000 is budgeted for 2011-13.
Nez Perce 115 kV Substation Rebuild and Capacitor Bank: Engineerng design is
complete for the entire substation. Constrction is well underay, even ahead of schedule,
for the 115 kV Switchyard, which wil be energized in 2010. If constrction continues on
this pace, the Capacitor Ban may also be completed and energized in 2010 ahead of
schedule. Total 2010 spend as of May 31 is $743,000 and the budgeted expected spend is
$2,925,000. The 2011 budget to complete the next phase of the project is $1,200,000.
SCADA Replacement: New substation SCADA integration systems wil be instaled at
Thrd & Hatch, Norteast, and Beacon Substations in 2010. Designs are complete for
Thrd & Hatch and Norteast and in progress for Beacon. Total 201 0 spend as of May 31 is
$31,000 and the budgeted expected spend is $290,000. The Control Center SCADA
upgrade to the latest application verion is underay. Some design work and preparation
has been completed. Total 2010 spend is $45,000 though May 31. The project wil be
completed by December 2010 with a total spend of $5 1 0,000
System Replace/lnstall Capacitor Bank at Aiay Heights Substation: Engineerng
design and yard expansion is complete. Electrc crew is on site and project completion is
expected by September 2010. Total 2010 spend as of May 31 is $198,000 with a budgeted
expected spend of $750,000.
.
Page 2 of3
.g. No, the Company is not required to fie documentation with NERC after completion of a
project. The Company does update its modeling input with WECC. Additionally, cerain
projects that are in the WECC Rating Process are tracked by WECC and therefore the
Company would provide documentation. The Company presently has no projecs in
progress that require this level of formal reportng to WECC. NERC would likely become
aware of the completion of any Company projects though the thee year on-site audit
process.
.
.
Page 3 of3
.
.
.
AVISTACORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
AVU-E-1O-01 1 AVU-G-1O-01
IPUC
Production Request
Staff-l 15
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
REQUEST:
06/23/2010
Scott Kinney
Waren Clark/on Malisan
Trans. Services/Real Estate
[phone]/(509) 495;.4063
The Company identified Colstrp Transmission and Tribal Perits as contractually required
projects. What role does the Company play in assurng these contractual projects are least cost and
cost effective? If no role, why not?
a. How can customers be assured that these additional costs are reasonable?
b. Please justify the 20 percent cost increase for the Colstrp Transmission expense
and describe any activity by the Company in an attempt to control ths cost
increase.
RESPONSE:
The following addresses the Tribal Permits question raised:
a. Tribal Perits: The Company holds approximately 300 right-of-way permits on
trbal reservations that must be renewed in the near futue. Most of the original
perits were for a fifty year ter on Tribal Trust and Allotted lands. In addition, as
our system continues to grow new perits are acquired for our facilties. These
lands are held in trst by the United States Goverent for the benefit of the Indian
Tribes and individual Tribal member. The Indian Tribe is the beneficiar on the
Tribal Trust lands and the individual Tribal members or Allottees are the
beneficiar on the Allotted lands. The United States Goverent, through the
Bureau of Indian Affairs adinisters the lands. A vista Corporation must follow
strct guidelines set by the Bureau of Indian Affairs for the issuace of new perits
The Bureau of Indian Affairs exercises its trst responsibilty and looks out for the
beneficiares. The costs include labor, appraisals, cultual sureys, field work, legal
review, GIS information, negotiations, surey, and the actual fee for the perit.
This work is required to maintain right-of-ways; therefore there are no offsets or
savings that wil be achieved. The Company does seek qualified low cost providers
for the contracted servces such as appraisals, sureys, etc. The role of the
Company is to follow the process required by the Bureau of Indian Affairs. The
fees for the new permits, which are for a 30 to 45 year term, are the result of the
process.
Page 1 of3
The following addresses the Colstrip questions raised:
.a. The Colstrp Transmission System (CTS) covers 494.5 circuit miles of 500 kV
transmission between Colstrp and Townsend. The CTS system also includes the
Colstrp and Broadview 500 kV substations. The system is operated and
maintained by Nortwester. Nortwestern either perorms or contracts out the
work associated with the joint owned facilties. Avista, Nortwestern, Portland
General Electrc, PacifiCorp, and Puget Sound Energy each have an ownership
share of the facilties and are paries to the Colstrp Transmission Agreement
which, among other provisions, obligates the joint owners to fund necessar
Capital and O&M costs associated with its share of the CTS pursuant to the joint
Colstrp contract. Avista's share and voting rights is approximately 11% of the.
CTS defined assets.
On or before September 1 of each year, the Nortwestern submits to the Colstrp
Transmission Committee a budget of its estimate of O&M costs by calendar
months for the following operating year. The budget is subject to approval by the
Colstrp Transmission Committee. The Colstrp Transmission Commttee either
approves the budget or a revised budget on or before November 1 each year. The
budget lists the work force and expense, materials, supplies, and other expenses
associated with the normal maintenance program. Extraordinar items of
maintenance are detailed, identifyg the cost of labor required beyond that
available from the regular force and other expense which will be incured. Avista,
by contact, also has the rights to review and audit evidence pertnig to the costs
and expenses incured by Northwestern for the CTS.
The Colstrp Transmission Committee meets anually (either in person or via a
conference call) to discuss the proposed next year's budget and futue years
projected budget. Nortwester details out each line item in the budget and the
Colstrp Transmission Commttee discusses the need for each item. After a
thorough review of each item, Nortwester submits a final proposed next year's
budget to the Colstrp Transmission Committee for approval.
.
b. In 2008 after equipment failure and a comprehensive inspection of the CTS
facilties, Nortwestern identified the need for a major wholesale replacement
program for the spacer dampers on the 500 kV lines. Similar major projects are
underway with neighboring utilities EHV lines in the Pacific Nortwest due to the
failure and wear of the spacer dampers on similar vintage facilties. Ths budget
item had been discussed with the Colstrp Transmission Committee in the past.
There are 40,000 spacer dampers on the 494.5 miles of 500 kV lines. The project
was expected to be a 3 or 4 year replacement program with signficant 'balloon'
fuding levels in 2009, 2010 and 2011. Replacement schedules are time sensitive
with the need to schedule the work around Colstrp plant outages to miize the
risk to the system and the risk of plant outages with a line out of serce for
extended perods of time.
.
An Anode Replacement program for the CTS has been taking place since 2007 with
additional work scheduled for 2010 and 2011. These budget items provide fuding
to complete the replacement of depleted sacrficial anodes on the cathodic
protection system of the CTS lines. The Colstrp to Broadview lines are comprised
of an A & B line. These lines were both installed with cathodic protection systems
in 1977 and 1983 respectively. The systems were estimated to have a 25 year life
Page 2 of3
.
span Replacement of the anodes and establishing the cathodic protection system is
crtical to stopping the fuer corrosion and depletion of the below ground anchor
rods and counterpoise grounding system.
The Spacer Damper Replacement program and the Anode Replacement program
were identified as extraordinar items in the O&M budget. These items are the
majority of the 20 percent cost increase for the Colstrp Transmission O&M
expense budget.
.
.
Page 3 of3
.
.
.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
AVU-E-10-01 1 AVU-G-10-01
IPUC
Production Request
Staff-117
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
06/30/2010
Scott Kinney
Mike Magrder
Substation Design
[phone]
REQUEST:
In Kinney's testimony, page 25, lines 40-42, he stated, "The Company wil also spend
approximately $5.516 millon in transmission system equipment replaceents associated with
storm damage or aging/obsolete equipment."
a. Please provide the stadard the Company uses to justify replacement project
decisions and identify each transmission replacement project in that standard.
b. Please explain how each project is prioritized.
c. The purose of some of the replaceent projects is to improve reliabilty. Please
describe how the Company identifies which areas need reliabilty improvement.
Include any documents or analysis the Company uses to identify reliabilty issues.
d. Please cite the reliabilty standards and the specific components of the project that
satisfy those standards.
e. Please quantify the impact of completing each of these projects to improve
reliability.
f. Please list the projects under the "Other Small Transmission Projects" as stated in
Kinney's testimony, page 27, lines 12-14, with their corresponding cost and a
description of their impact on the system.
g. Please explain how the Company undertakes the constrction of these transmission
replacement projects to assure reasonable cost. Are the projects contracted
in-house, competitively bid or sole sourced?
h. Please explain how risks are evaluated on proposed replacements that are not
fuded.
RESPONSE:
a. A vista Utilities determines what projects are selected by continuously monitorig and
analyzing its transmission system equipment. Asset Management tracks aging unts and
recommends replacement primarly based on age and condition. System Planing rus studies
to evaluate system capacity and equipment ratigs under varous outage contingencies looking
forward with load growt. System Operations completes anual operations studies to review
the present system and recommends changes if needed. Substation Support provides
maintenance reports that may indicate problems with equipment. The Compliance group
reviews the NERCIWCC requirements and may have to request changes to meet those
standards. Then Engineering reviews all of these inputs and plans for varous replacements to
meet the requirements in the most cost effective and resource efficient maner.
b. Replacements are prioritized though an engineering review of the T&D 5-year plan and then
narowed down to the anual budget plan. Typically, the oldest equipment is targeted for
Page 1 of3
.
.
.
priority replacement. Equipment condition is also a deterining factor. Required upgrades for
improved ratings and reliabilty ( compliance) can dictate ting and prioritization.
c. The System Planng, System Operations, and Compliance groups all review the tranmission
system for areas that need reliabilty improvements. Contingency analyses are ru to
determine if there are areas of vulnerability and they are documented as required. We are
required to meet NERCIWCC standards for reliabilty.
d. The reliabilty standards that must be met are TPL-OO 1 -0.1, TPL-002-0b, TPL-003-0a,
TOP-002-2a, and TOP-004-2. However none of the projects listed as replacement projects in
2010 are being constrcted to meet reliabilty standard requirements in 2010. If these projects
aren't completed then eventually they may lead to non-compliance with the standards. The
replacementprojects are required to replace equipment that has either failed durng the year or
is anticipated to fail in the near futue.
e.
f. System - Install Autotransformer Diagnostic Monitors: Ths project wil purchase and
install Digital Gas Analysis monitors on existing 230-1 15 kV transmission autotransformers in
order for A vista to continuously monitor and proactively manage the effective operation of
these important, expensive units. Other monitors have been installed on newer unts and this
project will provide monitors for the rest of the transmission autotransformer fleet. Spend in
2010 as of May 31 is $33,000. Budgeted expected spend for 2010 is $52,000 and $55,000 each
year though 2014.
Power Transformer - Transmission: Ths portion of the overall transmission transformer
budget is for the purchase and replacement of Load Tap Changer (LTC) oil filter and to pay
for the varous manufactuer inspections for the units we are purchasing. Spend in 2010 as of
May 31 is $13,000 with a budgeted expected spend of $80,000.
Beacon to Francis and Cedar - Whitworth Reroute: Avista is relocating/rebuilding
approximately 0.8 miles of the Beacon - Francis & Cedar (BEA-F&C) 115 kV Transmission
Line and Waikiki Tap of the Bell - Norteast (BEL-NE) 115 kV Transmission Line located
between Waikiki Road and Whtwort Drve at Whitwort University. The BEA-F&C and
Page 2 of3
.
.
.
BEL-NE existing 3/0 Copper wire, rated at 360 amps, wil be replaced with a 795 AAC
conductor, rated at 753 amps. The lines wil be relocated/rebuilt approximately 250 feet to the
nort, adjoining an existig BP A power line corrdor and improving facilty access. The
relocation/rebuild complies with a long range effort to increase capacity in the Nort Spokane
area. The project will be complete over two years with $325,000 being spent on phase 1 in
2010.
Ninth & Central Sub - Increase Capacity (Transmission Integration): The plan at 9th &
Central has been to build a new distrbution station within the existig 1 15 kV Switchyard.
Ths station would ultimately be configued with 2-30 MY A transformers and 6 feeders. Each
transformer would be connected to separate 115 kV buses in the switchyard and a distrbution
bus tie would be installed. The existing distrbution station would be removed entirely. In
addition, the 8th & Fancher 115 kV line to Latah Jct. would be moved into 9th & Central with
its own 115 kV breakered bay. Ths improves reliabilty and decreases exposure by
eliminating the problematic long rual tap off of the Ninth & Central-Third & Hatch 115 kV
Transmission Line to Latah Jct. The Company plans to spend $10,000 on design in 2010 with
project completion over several years.
g. Constrction is completed by in-house crews. . Contractors are used for site grading, fencing,
concrete work (foundations), and steel erection. Par of the engineerng reviews and
prioritization include looking at other budgeted Capital projects and coordinating needed
equipment replacements while the crew is on site. An example of this would be the Otis
Orchards 115 kV Breaker and Line Relay Replacements where we combined two replacement
projects into one specific project.
h. Projects that do not get funded in a given budget cycle are those that are deemed minimal risk.
The engineering budget team reviews each project and provides fuer analysis if needed to
deterine if the project must be done immediately or if it can be delayed. Reliabilty projects
are classified as "low" or "high" and most "reliabilty low" projects can be delayed.
Page 3 of3
.
.
.
A VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO DATE PREPARD:
AVU-E-I0-0l 1 AVU-G-10-01WISS:IPUC RESPONDER:
Production Request DEPARTMNT:
Staff-120 TELEPHONE:
06/28/2010
Scott Kinney
David James
Engineerng
[phone]
REQUEST:
Please provide the analysis used by the Company to identify the Worst Perorming Feeders and
how the Company prioritizes these feeders for improvement.
RESPONSE:
As noted in Response 118, A vista plans to invest $1,850,000 (W A & ID) to improve the serice
reliabilty of rual feeders. For 2010 in Idaho, Avista plans to invest $700,000 to reinforce four (4)
electrc distrbution feeder lines. The Company publishes an anual outage report attached at
Exhibit 11 8.b. 1 (Request 118) in which outage statistics are reported for transmission and
distrbution facilities. These statistics are evaluated by distrbution engineering and the
Company's area engineers. A vista has divisionally assigned area engineers for Spokane, Coeur d
Alene-Sandpoint-Kellogg, Pullmanoscow-Lewiston/Clarkston, Big Bend (Othello), and
Colville-Chewelah. The area engineers in collaboration with distrbution plang have identified
a number of undererforming distrbution lines and have made recommendations on how best to
improve serice reliability on those facilties. Rather than simply reinforce strctues (e.g. ER
2060, WPM Pole & Crossar replacement) engineerng staff have evaluated each feeder line and
taken a comprehensive approach to upgrades including assessment of protection coordination
(fuse/breaker), adding lightng arestors, shortenng long wire span, storm hardenng line
segments, along with changing out aging wood poles and strcture crossarms.
The curent and out year capital spend plan is included on the following page. Projects slated for
2010 in Idaho are highlighted. Note that of the four (4) projects, two are split projects between
2010 and 201 1 and one is a multi-year project to improve serce reliabilty on the long feeder that
extends from St Mares to Aver, Idaho along the St. Joe River. Though the bulk of Avista
customers live in urban areas (Spokane, Coeur d' Alene, Pullman), the Company also provides
serce to a signficant number of rual customer thoughout Easter Washington and Norter
Idaho. In fact, some of Avista's distrbution circuits are over 100 miles in lengt. Signficant
exposure to outages can result in higher than acceptable numbers of sustained and momentar
outages.
Avista's commitment to investing in rual feeders places emphasis on improving serce reliability
to customers that experence more than their fair share of sustained outages.
(See 5-year Capital spend plan on following page)
Refer to Exhibit 1 1.b.1 - Electrc Serice Reliabilty Monitoring Anual Report.
Page i of2
.
Page 2 of2
.
.
.
A VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
06/28/10
Scott Kinney
David James
Engineerng
[phone]
IDAHO
AVU-E-10-01 1 AVU-G-10-01
IPUC
Production Request
Staff-126
REQUEST:
Please list the projects under the "Other Small Distrbution Projects" category from Kinney's
testimony, page 30, lines 34-40.
a. Please explain how the Company underakes the constrction of these projects to assure
reasonable cost. Are the projects contracted in-house, competitively bid or sole sourced?
RESPONSE:
This request is ver similar to Request No 1 18 par E. In the interest of consistency, the response to
that question is restated below:
The majority of distrbution OH/G priar and secondar lines and equipment are
maintaned and installed by A vista line personneL. Though the Union negotiating process the
Company assures that all Avista stakeholders are receiving fair treatment with the respect to
labor costs of instaling and maintaining electrc distrbution equipment. Materal
procurement is the other side of that equation and A vista uses a varety of technques to help
drive volume discounts and market based pricing of equipment and materials. For non- A vista
line labor, the Company has negotiated hourly man and equipment rates for all of the local line
constrction companes (e.g. Hawkeye, Interational Line Builders, Mountain Power, Potelco,
Wilson Constrction, Henels and McCoy) and have used these "on-call" contracts to fill gaps
in our labor resource plans. Details of how these contracts are established, executed, and
monitored are controlled by the Company's Supply Chain Deparent which handles
professional serce contracting and distrbution line constrction contracting.
.
.
.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
06/28/2010
James M. Kensok
Jim Kensok
Information Serices
[phone]
IDAHO
AVU-E-lO-Ol 1 AVU-G-1O-01
IPUC
Production Request
Staff-127
DATE PREPARD:WISS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
REQUEST:
In Kensok's testimony, page 4, lines 12-15, he stated that "increasing requirements related to
reliabilty and securty related to our operations and communcations have required significant
ongoing investment in our IS hardware, softare and staff." Please cite those NERC standards and/or
other compliance requirements.
a. Please list the measures the Company has taken to fulfill those securty compliance
requirements and completion date(s).
RESPONSE:
Applications and the associated data and voice networks must be highy available and secure in order
to meet customer expectations of privacy and availabilty. High availabilty and securty as described
in testimony are not drven by NERC or other regulatory compliance agencies. They are drven by
customers' expectations of the Company to provide highly available systems that are secure
24x7x365.
The Company implemented a highy available computer environment that minimizes customer
disruption due to system outages. For example: Electronic bil presentment and payment is available
any tie of day for customers to access. The outage management application is used to effciently
manage customer outages. Ths system also is available for both A vista staff and customers any time
of day.
Providing securty for customer information and access to the Company networks is critical to
protecting customer information and the overall company digital assets. The Company hired
additional staff and implemented additional securty measures to achieve a reasonably secure
environment.
... ........Action Take.l ......Date ...Description ... .........
.............
Hired Security Analyst Oct-09 Responsible for day-to-day security operation
Hired Security Engineer Jan-10 Responsible for security technical design
Hired Security Program Manager Apr-1O Responsible for overall security program
Performed Internal Security Risk Analysis May-1O Risk based review using internal Avista staff
Installng PKI Software (Private Key
Infrastructure)Sep-1O Softare to improve overall protection
Scheduled External Security Risk Analysis Dec-1O Risk based review with external service provider
.
.
.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
AVU-E-I0-01 1 AVU-G-lO-Ol
IPUC
Production Request
Staff-128
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
06/28/2010
Jim Kensok
Jim Kensok
Information Serices
[phone]
REQUEST:
In Kensok's testimony, page 7, line 12, Table 2 provides a sumar of the 2010 Net Operating
Cost Increases. Please provide documentation and fuer cost breakdown per component (i.e.,
staff, training, tools, softare, etc.) for each of the categories in Table 2.
a. Please provide any cost!enefit analysis conducted to justify these expenditues.
b. Please provide the number of additional staff needed and justify each staffng position.
RESPONSE:
a. The cost increases that are represented in Table 2 are normal and recurng daily operating
costs. On an anual basis these operating costs are reviewed for opportities to reduce or
eliminate them;~, Kensok's testimony, page 6, line 9, Table 1 provides a sumar of
cost reductions for 2009. These reductions are the result of not only the anual review for
opportties to reduce or eliminate cost, but are also reviewed for the benefit that is
derived from continued operation. The benefit for the customer is evidenced by the
increasing use of the on-line servce and the opportity to avoid hiring additional call
center staff. The bid process for new or renewal of existing contracts seres as the
benchmark for obtaining servces at the best cost.
Please see Staff PR 128 Attachment A for a detail breakout of cost increases. Also see
Staff_PR328 Attachment B for 6-months actul and 6-month estimated net operating
anual cost.
b. There is a total of 10 new staff positions represented in Kensok's testimony.
1. Please see PR #130 response for information regarding justification of3 of the 10
positions.
2. Report wrter position (1 FTE): This position is responsible for extracting information
for creating reports from many data sources for the Company. These reports are
utilized to manage day-to-day operations ofthe business; i.e., Gas serice dispatching,
employee overtme, financial results, etc. The customer satisfaction rating data are
extracted and reports are generated to ensure the Company has relevant and timely
feedback concernng customer issues.
3. Geographic Information System (GIS) Developer (1 FTE): The workload in the GIS
area of the business has increased as a result of new opportties to better sere
customers. I.e., The Company now provides customer work scheduling on the WEB.
.
Response to Staff Request No. 349
Page 2
Ths requires additional programing and support of the GIS systems that are used to
convey curent and proposed facilty information.
4. SharePoint Developer (1 FTE): With the increased automation of customer
transactions, there is an increased workload for developers with SharePoint experence.
There are new numerous requirements for WEB based reportng; i.e., SEC, Energy
Sta, etc. With new reporting requirements there are new programing requirements.
5. Softare Developers (4 FTE). These positions support the following new applications:
Meter data management that is required for smar meter deployments. Distrbution
automation softare that is required for improving the operating effciency of the
electrc distrbution system. Enterprise serce bus platform that is necessar to
integrate these and other applications that support integration of the Company's
business processes. Prior to utilizing an Enterrise Serce Bus (ESB), the Company
wrote programs that connected each application individually. The ESB allows the
Company to write the interace once and use it many times, thereby reducing futue
development costs.
.
.
.OATI (Open Access Transmission Information - Curtailment)$18,000 New service in 2010
OATI (Open Access Transmission Information)$9,600 Vendor cost increase
Inland Power & Light. Mt. Spokane station 1,500 Increase in electric utilty cost
Washington State Patrol - Steptoe Butte 48 Increase in lease fees
Printer/Plotter/Scanner Toner 39,008 Increase is based on average monthly run rate in 2009
Blackfoot 3,636 Contract negotiation and usage change in telecommunication services
Centuryel 6,444 Contract negotiation and usage change in telecommunication services
Embarq 96 Contract negotiation and usage change in telecommunication services
Frontier 204 Contract negotiation and usage change in telecommunication services
Qwest 14,940 Contract negotiation and usage change in telecommunication services
TDS 72 Contract negotiation and usage change In telecommunication services
Verizon 5,028 Contract negotiation and usage change in telecommunication services
XO Communication 10,896 Contract negotiation and usage change in telecommunication services
AT&T - Ephrata Load Control 20.40 New service
Centuryel 1,440 Contract negotiation and usage change in telecommunication services
Qwest 16,404 Contract negotiation and usage change in telecommunication services
Zayo Bandwidth 5,220 Contract negotiation and usage change in telecommunication services
AT&T Wireless 18,000 Contract negotiation and usage change in telecommunication services
Verizon Wireless 2,40 Contract negotiation and usage change in telecommunication services
AT&T 1,680 Contract negotiation and usage change in telecommunication services
Others 48 Contract negotiation and usage change in telecommunication services
Thomson Reuters 1,930 Contract negotiation and usage change in telecommunication services
ATT Dedicated Internet (MIS) for Mission Campus 8,40 Contract negotiation and usage change in telecommunication services
Orbitcom 7,932 Contract negotiation and usage change in telecommunication services
AT&T - Electic Meter. SCADA, Wind and Misc Telemetry 25,800 Contract negotiation and usage change in telecommunication services
Verizon Wireless. Electric Meter, Mobile Worker, SCADA, Wind a 51,200 Contract negotiation and usage change In telecommunication services
Password. Meter Remote Disconnect service 3,120 Contract negotiation and usage change in telecommunication services
AT&T Mobilty 16,800 Contract negotiation and usage change in telecommunication services
Verizon Wireless 7,200 Contract negotiation and usage change in telecommunication services
Design Space Modular. 12' unit (Sonet trailer)600 Increase in lease fees
Ranch Communications (Pixlee) . Three Springs 1.600 Increase in lease fees
St. Joe Baldy Radio Corp - St Joe Baldy site assessment 50 Increase in lease fees
Washington State Parks - Mt. Spokane 73,759 Increase in lease fees
WSDNR Monumental Mtn 2,000 Increase in lease fees
WSP - Creston Butte 4,750 Increase In lease fees
Total 38O,Z05
.
Note: Invoices and payment transaction data through June 2010 are available for review.
.
StafCPR_128 Attachment A.xlsx Page 1 of7
.
.
.
HP/EDS
HP/EDS
HP/EDS
AssetWorks (hosting)
AT&
BT Counterpane
Cerium - Telephone Services
Cerium
Ultimate Software (HRIS System)
Volt Distributed Systems
Volt Security Admin
TROI and Volt Services
Total
$
$
$
$
$
$
$
$
$
$
$
$
$
170,837 New security position (1)
417,002 New network engineer Positions (2)
579,109 Increase in staffng and CPU
14,200 New hosting fees for AssetWorks Application
169,728 Additional hosting needs in San Jose CoLo (DR site)
9,348 Increase in BT Counterpane Security hosting Operations
8,159 Increase in service hours for telephone system admin
32,198 Increase in operational support
4,440 New test environment hosting services
16,704 Increase in network monitoring support
11.832 Increase in security administration support
55,200 Increase in miscellaneous project labor
1,488,757
Note: Invoices and payment transaction data through June 2010 are available for review.
StafCPR_128 Attachment A.xlsx Page 2of7
Professional services/contract labor
Total
New applications that require recurring maintenance and
support. Mobile dispatch - electric; Meter data
537,050 management; Distribution management application.
New applications that require recurring maintenance and
support. WEB Workbenches (construction scheduling);
Enterprise voice portal; BizTalk middleware; Rates
890,306 forecasting.
$ 1,427,356
Hewlett-Packard/EDS contract labor
Note: Invoices and payment transaction data through June 2010 are available for review.
.
.
StafCPR_128 Attachment A.xlsx Page 3 of7
AT&T - Fluke (PO 70715)1,000 New hardware
- AES License Support San Jose 3,300 New license support fees
¡- AES License Support Spokane 300 New license support fees
Avaya - AES License Support Test System 1,100 New license fees
BES - Blackberry application 200 New license support fees
COW - MOM - 2007 PO 61908 (Aug-Jul)346 New license support fees
COW - SharePoint 1,204 New license support fees
COW - Win Srv - 2007 PO 61908 (Aug-Jul)5,046 New software
COW - Win Term Srv - 2007 PO 61908 (Aug-Jul)250 New software
Cerium - Avaya/Witness and Comm Mgr 4,764 New software
Citrix XenApp License Subscription Renewal 25,596 Annual license fee
Computrace (purchased from COW 08/06)10,000 New software
HP CAE Application Manager 2,002 Annual license fee
HP CAE Application Self Service Manager 13,190 Annual license fee
HP CAE Inventory Manager 1,380 Annual license fee
HP CAE OS Manager PC 439 Annual license fee
HP CAE Patch Manager PC 1,289 Annual license fee
HP CAE Usage Manager 306 Annual license fee
Hyena 100 Annual license fee
Itron AMR Fixed Network Collection Engine 4,200 Annual license fee
McAfee Product Suite (Dell)5,205 Annual license fee
Microsoft Premier Support (February)2,750 New annual support fee
.p Storage Systems - PO 69991 22,965 New license support fees
otion 13,297 New license support fees
Quest - Vintela Authentication Services Licenses 400 New license support fees
Quest Change Auditor (# of users)390 Additional licenses
Quest Directory Analyzer 272 Additional licenses
Right! Systems - Citrix (PO 72289)7,449 New software
RightFax - Opentext 1,125 Annual license fee
Sommix/Denika 400 Annual license fee
Structured - IMAuditor (FaceTime)6,670 Annual license fee
Sycamore 20,262 Annual license fee
TeamQwest - Alert, View, Web 2,800 Annual license fee
ThinApp 2,000 Annual license fee
Verint - general 27,732 Annual license fee
Verint - production system 57,000 Annual license fee
Verint - strategic planner 3,287 Annual license fee
AT&T - Fluke (PO 70715)1,500 New hardware
Blackberry ($25 per device)8,050 New license fees
Cisco Smartnet - Cerium PO 69104 (36-mo term)24,000 Annual support fees
General Dynamics Gobook 27,320 Annual support fees
ID-AMR Fixed Network 32,000 Increase in network fees
MSE Tetragenics 15,000 Increase in network fees
N tScout - Sniffer Maintenance 32,000 Hardware maintenance
onix (2 label printers)1,200 New hardware
Structured - RTGuardian (FaceTime)90 Annual license fee
Verint Enterprise Call Recording 68,000 Increase in usage fees
Verint ECR Test System 3,000 Annual license fee
Total 462,176
Staff_PR_128 Attachment A.xlsx Page 4 of7
ACL 434 Annual contract increase
.Agenerai 50 Annual contract increase
Power Line Systems 800 Increase in annual contract
Advantica Stoner Associates 2,830 Increase in annual contract
,AlphaCare 221 Increase in annual contract
'ASPEN Inc 207 Increase in annual contract
AssetWorks - test 1,189 Increase in annual contract
AssetWorks - production 1,700 Increase in annual contract
Bentley Systems 1,295 Increase in annual contract
BSP Software 2,500 New software to manage meta data in Cognos
CADSWES (CU Tech Transfer Office)1,000 Increase in annual contract
Cognos (IBM PO 73020)79 Increase in annual contract
Computer Associates 30,000 New software to monitor web services
CYME 743 Increase in annual contract
Dynamic Risk Assessment System 131 Increase in annual contract
Egain Communications Corp 1,494 Increase in annual contract
ENOserv - production 2,677 Increase in annual contract
Enoserv - test 614 Increase in annual contract
ERDA (Formerly Leica)123 Increase in annual contract
ESC - Environmental Systems Corp 950 Increase in annual contract
ESRllnc 9,456 Increase in annual contract
Evergreen Data Systems 600 Increase in annual contract.apps 4,181 New licenses for business
ergy 10,500 Increase in annual contract
IBM 67 Increase in annual contract
iContact 13,300 New software for business email campaigns
ITRON - general 8 Increase in annual contract
ITRON - handheld 28 Increase in annual contract
Lingo 7,500 New software for business power supply forecasting
Microsoft 10,000 New software for Map on the Web
National Instruments 33 Increase in annual contract
Oracle - general 278 Decrease in annual contract
Oracle - purchased 11/09 PO 73148 5,539 New user licenses for Oracle Financial System
Power World 2,592 Increase in annual contract
Quality Training Systems (QTS) Software 625 Increase in annual contract
Quest 237 New Toad license
Schneider Electric 1,475 Increase in annual contract
SES Ltd 671 Increase in annual contract
Siemens Power Trans & Dist Inc 442 Increase in annual contract
Skilsoft 8,879 New training software
SKM Systems 1,200 New software
SumTotal Systems Inc - test 145 Increase in annual contract
SumTotal Systems Inc - production 2,877 Increase in annual contract
.e Cartesia Inc 9,633 Increase in AFM mobile licenses
oflow Inc 3,175 New licenses for business
Tomson Intersource RIA 3,400 Increase in annual contract
USUAG 11,200 Increase in annual contract
Ventyx Inc (Impact)1,432 Increase in annual contract
Ventyx Inc (was MDSI) (advantex)2,942 Increase in annual contract
staff PR 128 Attact ment A.xlsx Pa e 5 ofg 7
ViaData
Inc
erware PacWest - test
Wonderware PacWest - production
New SW License fees
Annual increase for existing in-house built SW
Total
93 Increase in annual contract
50 Increase in annual contract
106 Increase in annual contract
7,668 Increase in annual contract
131,000 New planned software
146,000 Software license fees for internal built software
446,369
Grand Total 908,545
Note: Invoices and payment transaction data through June 2010 are available for review.
.
.
StafCPR_128 Attachment A.xlsx Page 6of7
Software development tools, computer monitors,
personal communication devices for on-call support
and program debugging software.
Increase in applications and computing technology
requires additional tools for the new staff and new
$ 116,558 systems.
HP!EDS
TOTAL
With an increase in new applications and technology,
there is a need for additional and recurring training of
both new and existing software development and
$ 115,954 technical support staff.
$ 232,512
Note: Invoices and payment transaction data through June 2010 are available for review.
.
.
Staff_PR_128 Attachment A.xlsx Page 7 of7
.
.
.
20
1
0

I
n
f
o
r
m
a
t
i
o
n

S
e
r
v
c
e
s

I
n
v
o
i
c
e
s

P
a
i
d

t
o

D
a
t
e

-

a
n
d

a
n
n
u
a
l
i
z
e
d

2
0
1
0

E
x
p
e
c
t
e
d

S
p
e
n
d
(N
o
t
e

d
u
e

t
o

t
h
e

v
o
l
u
m
e

o
f

t
r
a
n
s
a
c
t
o
n
s
,

a
c
t
u
a
l

In
v
o
i
c
e

h
a
v
e

n
o
t

b
e
e
n

p
r
o
v
i
d
e
d
,

b
u
t

a
r
e

a
v
a
i
l
a
b
l
e

u
p
o
n

r
e
q
u
e
s
t
)
Ac
c
u
n
t
i
n
g

Y
i

E
x
p
e
n
d
i
\

R
e
p
o
r
t

c
a
t
e
g
o
r
y
O
P
E
R
Fe
r
e

A
c

V
e
n
d
o
r

N
i

A
c
u
n
t
i

P
e

I
n
v
o
i
c
e

N
u
m
b
E

V
o
u
c
h
r

~

T
r
a
n
s
a
c
t
o
n

A
m
I

S
U
M
53
9
0

2
7
5
3

2
0
1
0
0
2

4
8
3
0
9
0
I
N
V

4
8
3
0
9
0

2
2
7
.
0
0
Su
m

2
2
1
.
0
0
;
55
6
0
0

1
5
6
7

2
0
1
0
0
1

6
2
2
2
4

4
6
9
3
4

1
,
1
7
2
.
3
0
62
6
1
6

4
6
9
4
1
6

3
,
8
9
9
.
7
3
20
1
0
0
2

6
3
0
4
3

4
7
8
4
9
4

1
,
1
7
2
.
3
0
63
0
4

4
7
8
4

3
,
8
9
9
.
7
3
20
1
0
0
3

6
3
6
7
8

4
8
8
0
4
3

1
.
1
7
2
.
3
0
20
1
0
0
4
20
1
0
0
5
20
1
0
0
6
Su
m
56
1
2
1
0
15
6
7
20
1
0
0
1
20
1
0
0
2
20
1
0
0
3
20
1
0
0
4
20
1
0
0
5
58
7
0
0
0
20
1
0
0
6
Su
m
19
1
6
20
1
0
0
2
20
1
0
0
3
Su
m
NU
L
L
20
1
0
0
1
Su
m
30
5
6
4
20
1
0
0
1
30
9
6
9
20
1
0
0
1
77
5
2
20
1
0
0
1
Su
m
19
4
1
20
1
0
0
6
59
0
0
0
0
59
8
0
0
0
88
0
0
0
63
6
7
9
48
8
0
4
2
64
3
1
6
49
6
9
2
3
64
1
7
49
6
9
2
2
64
1
1
50
7
5
5
64
1
2
50
7
7
7
4
65
5
8
3
51
5
0
9
5
65
5
8
4
51
5
0
9
8
62
2
2
4
46
9
3
4
0
62
6
1
6
46
9
4
1
6
63
0
3
47
8
4
9
4
63
0
4
47
8
4
4
63
6
7
8
48
8
0
4
3
63
7
9
48
8
0
2
64
3
1
6
49
6
9
2
3
64
1
7
49
6
9
2
2
64
1
1
50
7
5
5
4
64
8
1
2
50
7
7
7
4
65
5
8
3
51
5
0
9
5
65
5
8
4
51
5
0
9
8
12
9
0
6
48
4
3
7
13
3
9
8
49
4
6
4
13
4
5
49
4
NU
L
L
NU
L
L
12
1
7
9
7
41
4
3
5
8
IE
7
3
9
3
8
NU
L
L
IE
7
4
0
7
7
NU
L
L
C1
3
3
4
1
3
0
52
0
6
5
5
3,8
9
9
.
7
3
1,
1
7
2
.
3
0
3,8
9
9
.
7
3
1,
1
7
2
.
3
0
3,8
9
9
.
7
3
1,
1
7
2
.
3
0
3,8
9
9
.
7
3
3O
.
~
.
~
1
l
;
1.
2
7
8
.
4
0
11
,
9
4
.
1
7
1,
2
7
8
.
4
0
11
,
9
4
5
.
1
7
1,
2
7
8
.
4
0
11
.
9
4
.
1
7
1,2
7
8
.
4
0
11
,
9
4
5
.
1
7
1,2
7
8
.
4
0
11
,
9
4
.
1
7
1,
2
7
8
.
4
0
11
,
9
4
.
1
7
79
¡
3
4
~
~
4
2
;
1,
7
8
0
.
2
32
3
.
0
0
57
0
.
9
7
'0

2
.
6
7
4
.
2
2
:
2.
1
4
2
.
4
1
.2
;
1
4
2
.
4
1
.
1
7
.
2
8
.
26
2
.
0
4
31
7
.
3
4
.5
9
8
.
6
6
13
.
0
4
re
p
o
r
t

r
a
n

6
/
2
8

a
m
Is

a
s

f
o
l
l
o
w
s
:
1.

F
i
r
s
t

6

m
o
n
t
h
s

o
f

2
0
1
0
:

A
c
t
u
a
l

s
p
e
n
d

t
h
r
o
u
g
h

J
u
n
e

I
n
c
l
u
d
i
n
g
ac
c
r
a
l
s

a
n
d

i
n
v
o
i
c
e
s

r
e
c
e
i
v
e
d

b
u
t

n
o
t

y
e
t

p
a
i
d
2.

S
e
c
o
n
d

6

m
o
n
t
h
s

o
f

2
0
1
0
:

F
i
r
s
t

6

m
o
n
t
h
s

w
e
r
e

a
n
n
u
a
l
i
z
e
d

t
o
de
t
e
r
m
i
n
e

a

m
o
n
t
h

iV

av
e
r
a
g
e

w
h
i
c
h

w
a
s

m
u
l
t
i
p
l
i
e
d

b
y

6

f
o
r

t
h
e
re
m
a
i
n
i
n
g

6

m
o
n
t
h
s
.
3.

T
o
t
a
l

2
0
1
0

f
o
r
e
c
a
s
t
:

K
n
o
w
n

a
d
j
u
s
t
m
e
n
t
s

i
n

t
h
e

p
r
l
m
a
i
y

F
E
R
C
ac
c
o
u
n
t

c
a
t
e
g
o
r
i
e
s

w
e
r
e

a
d
d
e
d

t
o

t
h
e

a
c
t
u
a
l

a
n
d

r
e
m
a
I
n
i
n
g

6
mo
n
t
h
s

t
o

c
o
m
p
l
e
t
e

t
h
e

2
0
1
0

f
o
r
e
c
a
s
t
.
4.

S
e
e

n
o
t
e
s

t
a
b

f
o
r

a
d
d
i
t
i
o
n
a
l

d
e
t
a
i
l
s

w
h
e
r
e

a
p
p
l
i
c
a
b
l
e
20
1
0

A
n
n
u
a
l

i
.
S
.

c
o
s
t
s

-

P
e
r

A
n
r
e
w
s

W
o
i
a
p
e
r
s

(
1
0

a
d
j
s

P
F
9
-
e
l
e
c
t

I

P
F
5
.
ga
)
Di
f
r
e
n
c
e
Un
e
x
i
n
e
d

v
a
ñ
a
n
c
e

f
r
m

2
0
1
0

e
x
p
e
c
t
d

s
p
e

i
n
l
c
u
e
d

i
n

W
A
l
l
O

G
R
C
AD
D
E
D

T
O

A
N
N
U
A
L
I
Z
E
D

T
O
T
A
L
:
23
8
.
0
0
0
.
0
0

9
2
3
0
0

E
n
t
e
r
p

B
u
s
i
n
e

C
o
n
t
i
n
u
i
t

p
r
o
j
e
c
t

J
u
n
-
e
c

e
s
t
i
m
a
l
e
39
,
1
5
5
.
0
0

9
2
3
0

U
l
t
m
a
t
e

J
u
n
e

p
y
m
l

(
1
0

A
P

6
/
8
)
25
,
0
0
0
.
0
0

9
2
3
0
0
0

M
S
S
P

p
r
o
j
e
c

A
u
g
.
D
e
c

e
s
t
i
m
a
t
e
70
,
0
0
.
0
0

9
2
3
0
0

L
i
g
h
t

R
i
v
e
r

n
e
t
w

a
r
c

a
s
e
s
s
m
e
n
t
84
0
,
0
0
0
.
0
0

9
2
3
0
0

H
P

l
a
b
o
r

(
s
e
e

N
o
l
e
s
)
15
0
,
0
0
0
.
0
0

9
2
3
0
0
0

I
B
M

s
e
c
u

a
r
h

a
s
s
e
s
s
m
e
n
1,
3
6
2
,
1
5
5
.
0
0

T
u
n
i
n
g

a
d
j
u
s
t
m
e
n
t
s

i
n
c
r
a
s
e
s

f
r

J
a
n
.
J
u
n

c
o
s
l
l
n
c
d

l
e
v
e
l
s
St
a
f
f
_
P
R
_
1
2
8

A
t
t
a
c
h
m
e
n
t

B
.
x
l
s
x
.
.
92
0
0
0
0

a
d
d
e
d

$
6
5
,
0
0
0

t
o

J
u
n
e

f
o
r

m
i
s
s
i
n
g

p
a
y
p
e
r
i
o
d

-

s
h
o
u
l
d

b
e

p
a
r
t

o
f

a
v
e
r
a
g
e
92
1
0
0
0

a
d
d
e
d

$
3
,
5
6
2
.
5
0

t
o

J
u
n
e

f
o
r

m
i
s
s
i
n
g

a
c
c
r
u
a
l
-

s
h
o
u
l
d

b
e

p
a
r
t

o
f

a
v
e
r
a
g
e
92
3
0
0
0

a
d
d
e
d

$
6
,
9
4
2
.
9
7

t
o

J
u
n
e

f
o
r

m
i
s
s
i
n
g

a
c
c
r
u
a
l
-

s
h
o
u
l
d

b
e

p
a
r
t

o
f

a
v
e
r
a
g
e
92
3
0
0
0

A
d
d
e
d

$
4
7
,
0
0
0

t
o

J
u
n
e

f
o
r

T
R
O
I

a
n
d

V
o
l
t

J
u
n
e

i
n
v
o
i
c
e
s

t
h
a
t

h
a
v
e
n
'
t

b
e
e
n

p
r
o
c
e
s
s
e
d

y
e
t

-

s
h
o
u
l
d

b
e

p
a
r
t

o
f

a
v
e
r
a
g
e
92
3
0
0
0

a
d
d
e
d

$
2
4
,
5
4
8

t
o

J
u
n
e

f
o
r

A
T
&
T

h
o
s
t
i
n
g

i
n
v
o
i
c
e

(
t
o

A
P

6
/
2
8
)

-

s
h
o
u
l
d

b
e

p
a
r
t

o
f

a
v
e
r
a
g
e
92
3
0
0
0

a
d
d
e
d

$
7
,
5
6
4

t
o

J
u
n
e

f
o
r

C
o
u
n
t
e
r
p
a
n
e

(
n
o

p
a
y
m
e
n
t

i
n

J
u
n
e
)

-

s
h
o
u
l
d

b
e

p
a
r
t

o
f

a
v
e
r
a
g
e
93
5
0
0
0

a
d
d
e
d

$
1
9
7
,
0
7
0
.
6
9

t
o

J
u
n
e

f
o
r

m
i
s
s
i
n
g

a
c
c
r
u
a
l
-

s
h
o
u
l
d

b
e

p
a
r
t

o
f

a
v
e
r
a
g
e
93
5
0
0
0

a
d
d
e
d

$
2
2
,
0
0
0

t
o

J
u
n
e

f
o
r

m
i
s
s
i
n
g

p
a
y
p
e
r
i
o
d

-

s
h
o
u
l
d

b
e

p
a
r
t

o
f

a
v
e
r
a
g
e
92
3
0
0
0

A
d
d
e
d

$
2
3
8
,
0
0
0

t
o

t
o
t
a
l

f
o
r

e
s
t
i
m
a
t
e
d

E
B
C

J
u
n
e
-
D
e
c
e
m
b
e
r
92
3
0
0
0

a
d
d
e
d

$
3
9
,
1
5
5

t
o

t
o
t
a
l

f
o
r

U
l
t
i
m
a
t
e

J
u
n
e

p
a
y
m
e
n
t

(
t
o

A
P

6
/
2
8
)
92
3
0
0
0

a
d
d
e
d

$
2
5
,
0
0
0

t
o

t
o
t
a
l

f
o
r

M
S
S
P

A
u
g
u
s
t
-
D
e
c
e
m
b
e
r
92
3
0
0
0

a
d
d
e
d

$
1
5
0
,
0
0
0

t
o

t
o
t
a
l

f
o
r

I
B
M

s
e
c
u
r
i
t
y

a
r
c
h

a
s
s
e
s
s
m
e
n
t
92
3
0
0
0

a
d
d
e
d

$
7
0
,
0
0
0

t
o

t
o
t
a
l

f
o
r

L
i
g
h
t

R
i
v
e
r

n
e
t
w
o
r
k

a
r
c
h

a
s
s
e
s
s
m
e
n
t
ad
d
e
d

$
8
4
0
,
0
0
0

t
o

t
o
t
a
l

f
o
r

H
P

l
a
b
o
r

-

$
4
2
0
,
0
0
0

i
n

e
x
p
e
n
s
e

l
a
b
o
r

i
n

l
a
s
t

h
a
l
f

o
f

2
0
1
0

i
n

s
u
p
p
o
r
t

o
f

D
i
s
t
r
i
b
u
t
i
o
n

M
a
n
a
g
e
m
e
n
t
Sy
s
t
e
m
,

M
e
t
e
r

D
a
t
a

M
a
n
a
g
e
m
e
n
t

S
y
s
t
e
m
,

a
n
d

M
e
t
e
r

D
a
t
a

C
o
l
l
e
c
t
i
o
n

e
n
g
i
n
e
;

$
4
2
0
,
0
0
0

e
x
p
e
n
s
e

l
a
b
o
r

f
r
o
m

c
u
r
r
e
n
t

c
a
p
i
t
a
l

p
r
o
j
e
c
t
s
92
3
0
0
0

b
a
c
k

i
n

s
u
p
p
o
r
t
.
St
a
f
C
P
R
_
1
2
8

A
t
t
a
c
h
m
e
n
t

B
.
x
l
s
x
.
Pa
g
e

2
.
.
.
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
REQUEST:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INORMTION
IDAHO
AVU-E-IO-0l 1 AVU-G-IO-0l
IPUC
Production Request
Staff-129
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
06/29/2010
James Kinsok
Jim Corder
Infrastrctue Technology
[phone]
In Kensok's testimony, page 17, line 2-4, he mentioned that the Enterrise Business Continuity
Program "provides the oversight and direction for recover and restoration of business systems
and facilities in the event of a disaster." Please descrbe ths program in greater detail and its
implementation date.
a. Please provide the documentation for ths program.
RESPONSE:
Please see StafCPR_129 Attachment A for a copy of the Enterrise Business Continuity Program
Charer.
Page 1 ofl
.
.
.
Av'STA.
Program Charter
Enterprise Business Co ity Program
Ste~tLaVelle
Ste~e LaYelle;,;,
Ste~e
Ste~e LaVelle
StafCPR_129 Attchment A Page 1 of3
.Program Charter
Enterprise Business Continuity Program
PROJECT INORMATION
1""'.'_."""'---'---" ....-..-......-..--.-.-.--.-:.-----------....------.-.--~-'_._._---"-------.iI Executive Sponsor Jim Kensok I
I Program Sponsor Jim Corder II Prepared By Steve La Velie I
Accounting will be determined by the scope ividual project withinthe program. The budget for the Enterpri Expansion and
Refresh Program will be the total of the bús of all of the projectS' .r the program.
Projects may be classified as Expense or Capitâ:)!,.Each a~~'Yity wil be ~~:d
separately, and the budgets will b determined sep;;jjEach Capital Pr()j~et will have
its own project number. ExpenS ..... ts wil be c . und a single bla.ët expense
project number (09905477). The associat th the charer of this program
beyond the staff time associated wit ent an 'ew..
A vista has developl"l3l1terpris~'Business C8~~lnuity Plan (EBCP), Disaster Recovery
(DR) syste~~...and procèd1J:stRr~~~i~~e emergency response and business continuity
activities in fufillment ofout.missioti;".
ThiSerg~am is establi~lled to Sû.~:Rprt the Entêrprise Business Continuity objectives for
the entt('dse as it provian all~ ..' ds frework for emergency response and
business' . uity activi res to a manade or natual event, and when
necessar, ic comm . ons and operational procedures for implementig certin
response acti
ESS OBJECTIVE & BENEFITS
Support of the Enterprise Business Contiuity Plan mitigates risk and minimizes the
impact on the Shareholders, Customers, Employees and Community in an event requirng
activation of the EBCP.
Through the support of standardized mission critical deparental plans and
comprehensive alternate facilties planing, exercises and testing, the recovery and
restoration effort may be synchronized, lowerig the risk of direct, indirect, tangible or
intagible losses..
StafCPR_129 Attchment A Page 2 of3
.By supportng and testing of the varous Business Contiuity, Emergency Operating and
Disaster Recovery plans in support of critical business processes, we can identifyng and
correcting gaps as well as ensure the readiness of systems, procedures, processes and
people durng emergency operations.
PROGRAM SCOPE
Within the scope of the Enterprise Business Continuity Program are Capital, Expense and
Reoccurg projects that are directly related to building, ;elåìcing and testing Business
Continuity items.
See Enterprie Business Continuity Master Progri:j¡;WorkbiJ~ltxlsx for a list of allprojects. ... ..,/
These items are to be considered'
TBD
PROGRA SCO:ÐF;;;,EXCLUSIONS;i;ij;;tl);;L;
PROGRAM.~. are held periodically to
as well alto reinforce training and
nterprise Business Continuity plan.
m Workbook.xlsx for a list of all
""';:t'-:I'i:--~;:
~-k; ;~\KEY"STAKHOLDERS
;.-. _ _:':';\~1J
A vista OffceiSãnd DirectorS;;
Deparent Recovery Plan.G(jordinators
PMO
';;\:':¡
.
StafCPR_129 Attchment A Page 3 of3
.
.
.
A VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
AVU-E-10-01 1 AVU-G-I0-0l
IPUC
Production Request
Staff-130
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
06/29/2010
James Kinsok
Jim Corder
Infrastrctue Technology
[phone]
REQUEST:
Please provide a list of the completed network upgrades, its corresponding completion date, and
the cost to provide the support for automation.
a. Please provide any analysis (i.e. cost/enefit) to justify these additions.
b. Please provide the number of additional staff needed and justify each staffng position.
RESPONSE:
Justification for increasing contracted network operator expenses were largely based on the
growing backlog of network workload. Workload growt has been driven by compliance related
operating controls, mobile networks, meter automation, and generation control networks for plant
automation. The attached chars (Staff_PR_130 Attachment A) ilustrate the backlog of network
assignents. Cost of two HP network operators: -$280,000.
One network operator contract position assigned to meter network. Network workload increased
with ths area following the completion of the AM implementation project. The combination
of AM technology and pre-existing meter networks required a dedicated network operator to
operate and maintain. A network operator has been located in the meter shop to work side-by-side
with the meter operations team.
One network operator contract position assigned to the generation control network. Regulation
places portions of the control network into the bulk energy supply space. The control network size
is increasing and becoming much more complex. A network operator has been located at the
generation control center to work side-by-side with plant operators.
List of 2009 Projects that contained substantial network components:
Description
New Phone System at Noxon HED
New Phone System at Cabinet HED
SONET Network Time Standard
SONET VistaNet Visibilty & Alarm Monitoring System
Spokane Valley Horizon Addition
Air Quality Monitoring Technology
MDWWAN
Status
Completed 12/09
Completed 12/09
Completed 3/10
Completed 12/09
Completed 11/09
Completed 4/10.
Compl~ted 11/09
Page 1 of2
.
.
.
Offsite Backup Network Improvements
Spokane Valley Facilty - Network
Network O-ring
GenNet IDS
LMS for Field Offices
M02 - Elect Svc - Infrastructure
EVP - IVR Replacement
Shawnee- North Lewiston Conectivity (Sonet)
IdahoAMR
115kV Relay Upgrade Phase 1~I
Upper Falls Substation
Idaho Road Substation
Benewah Substation
Craigmont Substation
Completed 11/09
Completed 5110
Completed 5/10
Scheduled to complete 0310
Completed 12/09
Scheduled to complete 7/10
Completed 3/10
Scheduled to complete 0211
Completed 12/09
Completed 12/09
Completed 09/09
Completed 10/09
Completed 01/10
Completed 08/09
.1M
8~II.
I
l
!
- Ii
jl
IIa~ii
2' l
III
j
l,i..
I.~
j
.11 .l
I
l
!
- Jl
II
l .sil
Ii
J
ll.0 ~g lt ~i~..
Il"i
StafCPR_130 Attchment A Page 1 of2
.iõlII.
i
I
l
i
l
~
l
j
i
g. l
I
I:
l
I:
I
.li
g
i
!
!
J
ll
I
$
I
i
i li
l.
l
I:
I
g.~ß
..i
StafLPR_130 Attchment A Page 2 of2
.
.
.
A VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
6/2212010
Scott Kinney
Jeff Schlect
Transmission Serices
[phone]
IDAHO
A VU-E-10-01 1 A VU-G-I0-01
IPUC
Production Request
Staff-137
REQUEST:
Please provide a qualitative and quantitative descrption of the benefits derived though Avista's
paricipation in Columbia Grd that justifies the expenditues.
RESPONSE:
The benefits of Avista's paricipation in ColumbiaGrd are not easily deterined through a
quantitative analysis and, to date, no such quantitative analysis has been perormed. Avista's
paricipation in ColumbiaGrd provides, but is not limited to, the following benefits: (1)
compliance with the FERC Order 890 requirement for regional transmission planng
coordination (specifically those processes outlined in Attachment K of Avista's Open Access
Transmission Tarff, (2) availabilty of an independent Board of Directors with authority to
effectively make cost allocation determinations in the event of a dispute among constrcting and
benefiting paries, and (3) support and development of sub-regional initiatives that may provide
financial and/or operating benefits to parcipants (e.g. current 1- TAP, DSS and intra-hour
scheduling initiatives).
Unlike the robust, autonomous strctues contemplated by the region's prior RTO West and Grid
West proposals, the organzational structue of ColumbiaGrd commits a paricipant to fud only
those fuctional ColumbiaGrd activities for which it executes an agreement. From a qualitative
standpoint, ths organzational strctue provides a significant measure of cost-control on the par
of any paricipant. Additionally, the availabilty of an independent board to address disputes in
any specific area defined by a fuctional agreement is a benefit. This dispute resolution capabilty
enabled ColumbiaGrd plang parcipants to clearly meet the FERC requirement for dispute
resolution in its Order 890 regional planng requirements. See also response to Staff request No.
138.
.
.
.
A VISTA CORPORATION
RESPONSE TO REQUEST FOR INORMTION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
6/25/2010
Scott Kiey
Jeff Schlect
Transmission Servces
[phone]
IDAHO
A VU-E-I0-0l 1 A VU-G-IO-01
IPUC
Production Request
Staff-138
REQUEST:
Please explain why Avista chose to parcipate in Columbia Grd rather than the Norter Tier
Transmission Group.
RESPONSE:
A vista has long acknowledged the need to move forward to address regional transmission
problems and opportties. A vista has always desired, and recognized that the best regional
solution would be, a regional transmission organzation (RTO) strcture that includes the
involvement of all major regional transmission providers. Whle Avista had paricipated fully in
all of the Nortwest RTO forus and provided its perspectives on these strctues, Avista's
fudamental criterion was the need for the region to move forward with suffcient regional scope,
which has often been descrbed in ters of "critical mass." With respect to Avista's position
within the Pacific Nortwest transmission grd, the following background is infoniative: Avista
has thireen (13) transmission interconnections with the Bonneville Power Adminstration (BPA)
and purchases 718MW of long-ter transmission capacity from BPA. Avista has two (2)
transmission interconnections each with Grant County PUD, PacifiCorp and Nortwester
Energy, and one (1) each with Chelan County PUD and Idaho Power. Avista purchases no
long-ter transmission capacity from these non-BPA transmission providers (Avista purchases
long-term transmission capacity from Portland General Electrc on the Souther Interie, but
requires BPA transmission to reach ths capacity). Accordingly, as Avista assesses its
involvement with any RTO strcture, pragmatically, the role of BPAin such strctue must
receive strong consideration. For example, the abilty to attain meanngful dispute resolution
capabilty with BP A is a strong consideration. A vista's extensive interconnections with BP A and
its dependence upon BPA transmission capacity dictate that the majority of Avista's transmission
issues arse with BP A, not with its other interconnecting paries. The West-of-Hatwai dispute
between A vista and BP A resulted in a collaboration of transmission constrction between the two
paries, but took approximately twelve years to ultimately resolve the dispute. The ability to
potentially engage BP A in dispute resolution with an independent board effectively able to sere
as arbiter (if not substantively, considering BP A's statutory inabilty to submit to arbitration), was
a major consideration in A vista ultimately paricipating in ColumbiaGrd. Included as
Staff _PR _138 Attachment A is an outline of a September 9, 2005 A vista update session with IPUC
Commissioners and staff wherein Avista's general RTO assessment criteria and positions are
ariculated.
Included as StafCPR_138 Attachment B to ths response are two e-mail strngs from March, 2006
wherein A vista sets fort its RTO positions at the tie it first became a sponsor in the development
Page i of2
.
.
.
of ColumbiaGrd. The e-mail strng of March 21, 2006 was sent to the Commission's Lu An
Westerfield, communicating Avista's intent to sponsor the development of Columbia Grd and its
concerns regarding diffculties in continuing to move forward with the Grd West strctue absent
BPA. The e-mail strng of March 29, 2006 underscores Avista's fundamental goal of the region
moving forward in a cohesive fashion, Avista's wilingness to consider all alteratives to effect
this goal, and Avista's standard approach of ongoing assessment and analysis regarding RTO
strctues. Included as Staff_PR_138 Attachment C is an interal meeting document dated June 5,
2006, outlining Avista's then-curent approach to RTO development, which at that time did not
include an NTG option, including reference to Avista's assessment criteria, or "position," with
respect to consideration of BP A paricipation.
ColumbiaGrid members elected a thee-member independent board of directors on August 1,
2006. At this point in time the ColumbiaGrd members had also largely developed the Planng
and Expansion Functional Agreement (made available for execution on Januar 17, 2007).
Prospective members in an alternative RTO strctue anounced on October 10, 2006 their intent
to form NTG. Therefore, at the time Avistajoined ColumbiaGrd, the NTG group was not in
existence. Included as Staff_PR_138 Attchment 0 is an e-mail strng of October 13, 2006
outlinng Avista's recognition of the likely futue formation ofNTG (which occured in Januar,
2007) and Avista's continued approach in assessing paricipation in RTO strctues: namely that
Avista needs to continually assess what its best involvement in RTO strctues might be and that a
fudamental pragmatic consideration in this ongoing assessment is the approach chosen by BP A.
Following the establishment of ColumbiaGrd, the execution of the ColumbiaGrd Planing and
Expansion Functional Agreement ("PEFA"), and the formation of NTG, the Federal Energy
Regulatory Commission (FERC) issued its Order 890 on Februar 16,2007. In ths order, FERC
required transmission providers to submit a proposal for a coordinated regional transmission
planing process as an "Attachment K" to each transmission provider's open access transmission
tarff. FERC required that these transmission plang proposals must include seven elements,
including the requirement to "develop a dispute resolution process to manage disputes that arse
from the Final Rule's planng process (FERC Order 890, ,r 501). With its paricipation in the
ColumbiaGrd PEF A, A vista was able to demonstrate compliance with ths FERC Attchment K
requirement. At such time it was not clear to Avista that NTG would or could, from an
organizational strctue standpoint, develop a dispute resolution process that would be acceptable
to meet the FERC requirement. With the passage of time it has become apparent that FERC is
accepting of the dispute resolution principles or processes of both ColumbiaGrd and NTG
(A vista's Attachment K was accepted by FERC on March 3, 2010 while NTTG members received
acceptance of their respective Attachment K filings on April 8,2010).
Avista continues to find benefit in the fuctions of Columbia Grid but wil continue to monitor and
assess the costs and qualitative benefits of parcipation in either the ColumbiaGrd or NTG
organizations.
Page 2 of2
.
Attachment A
Outline of September 9, 2005 A vista Update with IPUC
.
.
.
.
.
TRANSMISSION ISSUES - GRID WEST and rIG
IPUC Update
September 9) 2005
. A VISTA POSITION - BASIS FOR COMMENTS TO BONNEVILLE
.With respect to addressing regional tranmission problems and opportunities, the region must
move forward - "do nothing" is not acceptable
Both the Grid West and Transmission"Improvements Group (TIG) approaches are workable
and ca provide value to the region, contingent upon a critical mass of regional support
For either approach to be viable and successfu, Bonneville must be a committed parcipant
In whichever approach Bonneville deternes it wil move forward - Grid West il TIG -
Avista will both paricipate and fund the aplicable developmental activities (with respet to
nea-ter activities) Avista will not fud parlel, competing processes)
.
.
.
.AVISTA ACTIONS
No filing of Grid West Funding Agreement with state commissions
If Bonnevile decides to paricipate solely in Grid West:
_ Contiue parcipation in Grid Wes development actvities
- Discontinue paricipation in TIG foru
_ Execute Grd West Funding Agreement - two-year irrevocble funding
)i Avistacap of$1.34 milion .
_ Continue as deClartory member pending dates established for election of Members
Representative Committee and Trustee selection
. If Bonneville decides to paricipate solely in the TIG approach:
- Continue paricipation in TiG development activities
_ Execute TIG funding agreeent - maximum amount to be deterined
If Bonneville chooses to endorse and fud both Grd West and TIG proceses:
_ Re-assess paricipation and abilty to fund either Grd West or TIG development
_ Wil not fud overlapping parallel proceses in dict conflict and competition with one
another (primarly with respet to implementation ofnea-ter actvities)
. If Bonneville chooses to endorse some tonn of "convergence" proposal:
-Wil not fud overlapping paralel proceses in direct conflct and competition with one
another - balance of staeholders in both TIG and Grd West processes must embrace the
fuctional role of each in a "converged" proposa
_ Re-assess position; willng to consider altertives so long as implementaton timeline is
not delayed
_BACKGROUND
. Grid West and TJG Benefit/Cost Analyses
. Grid West Benefits/Costs (BPA analysis)
;: Costs: Starp _ $133 milion; Operations - $86 milion (-$101 mil1on anually)
;: Anual Benefits: $ 106-$ 1 81 millon ("reliabilty benefits" $27-$62 milion)
;: Net Annual Benefits from $5 milion to $80 millon
(less "reliability benefits": from net anual $22 milion cost - $18 millon benefit)
- TIG Benefits/Costs
;: Draft costs: Starp - $82 millon; Operations - $51 mìUion (-$61 millon annually)
;: No benefits analysis to date
- Allocation of Grid West developmental fuding obligations - no change
A vista Facts
- Total Transmission Plant: $338 milion-; 16% of company assets
- Depreciated Net Trasmission Plant: $217 milion; 15% of total company assets
- Net transmission plant reresents 2%-3% of regional tota
_ Total retail sales -916 aMW; 4% of regonal load
- Anual retail revenue requirement -$450 milion
- Assumng no benefits, an Avista 4% share of Grid West anual costs of $101 million is $4.0
milion, or 0.9% of Avista's anua retail revenue requirement
._ GRID WEST AND TIG COMPARISON
Areas where Grid West and TIG are Comparable Approaches
- Resolution of transmission planing and expansion issues
Maintain ownership of trnsmission assets
Maintan operational control of transmission assets
Opportnity to consolidate contrl area ~perations
Opertional effciencies - poling of regulating resere
Risk of inabilty to withdraw in the event Bonnevlle withdraws
No change in risks asociated with the preeratìon of rights for serce to native load
Areas where Grid West is the Favorable Approach
_ Federal regulatory preference (market-based rate authority, stdards o(conduct issues)
- Mitigation of BP A leverge in developmental negotiations
- PUR A "waiver" from Energy Policy Act of 2005
- Liabilty protection - Tari1flimitation on liabilty
- Implementation oftlow-bas ATC and injection-withdrawal scheduling protocols
Areas where TIG is the Favorable Approach
- Mitigating risk of scope cree and escaating cost
- No incremental risk associated with interconnectìon to faciltate direct retail access.
Trasmission Issue - ¡PUC 2 Septembe 9, 2005
.
Attachment B
March, 2006 E-man Communications
.
.
. Schlect, Jeff
From:"t:
~ject:
Cloward, Randy
Tuesday. March 21,20065:56 PM
Schleet, Jeff; Dahlke, Gary
FW: Avista Support for ColumbiaGrid
fyi
-.-..Original Message----
From: Cloward, Randy
Sent: Tuesday, March 21, 20064:55 PM
To: Lou Ann Westerfeld (E-mail)
Cc: Folsom, Bruce
Subject: FW: Avista Support for ColumbiaGrid
This email announces Avista's intent to join ColumbiaGrid as a sponsoring control area. We are bothered by current
developments in Grid West and want to keep our options open. I realized that this news is disappointing to you after all we have
done to bring this together We will at least continue in the work groups of GW for ADI and Planning and WI!! carefully monitor
further Grid West development Pi ease Gall Bruce or i if you have any Questions.
-----Original Message-----
From: Ooward, Randy
Sent: Tuesday, March 21, 20064:30 PM
To: Afranji, Frank - PGE; Brush II, Ray W; Durick, Chuck -- Idaho Power; Lusztg, cameron - BCTC; Maher, Mark - PacifiCorp
Subjec Avist Support for ColumbiaGrid
It paìns me to deliver this message but followìng the call today I feel i must move Avista's position in ongoing grd
discussions. The timìng is such that in order to be on the !:rround floor ofColumbiLiGrid, Avista must let them know,
.1 soon. ifwc intend to be a spommr ofthc organization. It would be extremely difficult. and not a high road in my
nion, to be involved in the initial development of ColumbiaGrid without becoming a sponsor. At the same time
becoming a sponsor of Columbia Grid makes it ditlicult to remain fully engaged in Grid West al:tivitics and funding.
Avista believed that Grid West was the best model going forward absent convergence, notwithstanding the lack of a
hroad regional scope. However, the current Grid West model is significantly modified from where we were tìJllowing
the breakup and the vìsion of an independent Grid West, able to negotiate at ans length with prospective transmission-
owning párticipants, ìs noW in doubt. Weare also concemed that moving ahead \vith fiings makes the situation worse,
unless it is dear from the fiings that utilties have .obtained perìssion in advance to restructure the debt or forgive it
entìrely. As you have heard Gary and I state on severaloccasicinswe donlt belìeve a sized down Grid West ìs viable
with its current debt load. Added to this is the uncertainty of how, or if, MidAmerican intends to move forward with
grid management activities. rccognizìng full well that their existing positioiis in MISO are along the TIG lines (with the
recent addition otïndepcndent tari ff administration). These uncertainties necessitate that Avista look toward
considenltion otihc development otthe Columbi::Grid initiative.
In order for Grid West to move fòrward we believe the only option short ofú)rgi\'ing the deht WOlilJ rcqiiire unanímiiLls
approval to convert the total debt 10 equitysharcs in the corporation and establish some sort of plan to buy the equity
back over time. This option would not require the organization to finance the debt as a siand-alone corporatìon and
immediately pay offthc loans as is now required. Repayment could be as simply as a discount on services rendered.
We plan on continuing to assist in both ADI and Planning in Gdd West work groups and will continue to monitor the
potential development ofOiid West. However, we think the more serious ìssue for Grid West is whether or not it will
wind up its affairs so that other regional options can be explored that are not burdened hy the debt owed by Grid West.
.cordingiy. please be advised that Avista willlikcIy be engaging as a sponsor in the development of ColumbiuGrü-L
am sorry for any perceived ahruptness of this decision but ongoing developments are dictating the timing of these
changes.
1
- Schlect, Jeff
Subject:
Schlect. Jeff
Wednesday. March 29. 2006 3:10 PM
'Kristi Walls'
Cloward. Randy; Imhof. Hugh; Folsom. Bruce; Dahlke. Gary
RE: Avista Involvement in ColumbiaGrid
From:.t:
Thanks Kristi. In response here are a few quickly-drafted message points regarding Avista' s
participation in transmission restructuring activities in the Pacific Northwest:
On ColumbiaGrid:
_ Avista intends to participate in discussions regarding various potential activities/functions
that might be offered/performed by ColuinbiaGrid.
_ Avista has attained its internal approvals to participate as a sponsor 1 at this point in time, in
ColumbiaGrid.
General:
- As has always been Avista' s approach, we feel it is appropriate
viable alternatives to address some of the issues that exist, and
that might be available, in the transmission arena in our region.
to explore and assess the ColumbiaGrid initiative.
_ Our past support for EITHER the TIG, Convergence or Griclest approaches were contingent upon
either approach encompassing sufficient regional scope, or that elusive "critical mass."
Accordingly, we continue to have a measure of frustration (not unlike many others, I am sure) ovei'
the region's inability to move forward in a cohesive fashion.
_ Notwithstanding such frustration, we have what we have, and Avista wishes to be a proactive
participant in whichever forum( s) might help the region move forward.~vista has made no final analysis or determination as to its intent to participate in/with either
~olumbiaGrid or Grid West proposal in the long-term.
to consider all potentially
attain some of the efficiencies
Accordingly, we feel it prudent
On Grid West:
_ Avista is continuing to fulfill its interim funding commitments to Grid West.
_ Avista will continue to participate in discussions regarding various activities/functions that
might be offered/performed by Grid West.
A bit of a broad brushJ but J nonetheless, I hope it provides a bit in the way of clarification.
Randy and I should both be available for at least the first hour' of the call this afternoon.
- - - --Original Message- - - --
From: Kristi Wallis r mail to: KristiWallis~sprintinail . com)
Sent: wednesday, March 29, iee6 1: 26 PM
To: Cloward, Randyj schlect, Jeff
Subject: Re: ColumbiaGrid
Thanks, Randy. Your thoughts, Jeff? (See, I was afraid I was
overassuming.) I am not familiar with GridWest's initiatives - but do they dovetail with what we
are working on in ColumbiaGrid? We have talked to some of the Filing Utilities about working
together on planning, and they were open to that. (Would the planning ìniative entail something
different than that?) What is the ADI ini tiatve?
(Assuming you can tell me, if not, no problem.)
Talk to you soon (hopefully). I think I will start the call with Avista' s status and leave it to
.u to share what you would like.. If you are not represented o~"t,he. call, subject to hearing
mething contrary from Jeff, I will share with them that you are going to be a Member of
ColumbiaGrid, but I am not sure just what that means regarding GridWest' s efforts (and your status
as a Filing Utility), leaving that for' you to discuss later.
We have an in-person meeting of the Sponsors next week on Wednesday, from 9 - 1, POX Conference
Center. That will give us a chance to have a foiiow~up discussion, if needed..
eers, Kris tì
Cloward, Randy wrote:
)1 hope Jeff weighs in as well but as far as I'm concerned you can tell the group that we are in.
What I can't say is that we are .. pulling out of Gt"d West". That's because I have alerted them
that we will be sponsoring ColumbiaGrid but that we still intend to support GW iS ADI and Planning
initiatives. With a little luck one of us will be on the call for the first hour or so.
)
) ~ - ~ - -Original Message- - - --
)From: Kristi Wallis (mailto:KristiWallis~sprintmail.comJ
)Sent: wednesday, March 29, 28Ø6 12: 13 PM
)To: Schlect, Jeff; Cloward, Randy
)Subject: ColumbiaGrid
)
"
)Hello!
)
)
)As you both know, I am very pleased that Avista will be joining
)ColumbiaGrid. I am sensitive about the timing of the release of this
)information, although it sounded like, based upon my conversation with
)Randy last week, that the Grid West folks and the Idaho PUC know (or,
)at least know that Avista is pulling out of Grid West) (Randy, I never
et the letter you sent to the other Grid West filing utilities that weiscussed, so I may be overassuming.) Is it OK to make it official
)with the Sponsors today, even if we do not let anyone else know? (Or,
)am I being too cautious and is it OK to discuss publicly)? It is, of
)course, entirely your call, and we can continue on as is with the
)Sponsors being very hopeful, but not certain.
)
)
)1 hope that both (or one) of you plan to be on the Sponsors call at
) 3 :80. If you are comfortable, we can talk about Avi sta' 5 status with
)the Sponsors then.
)
)
)Also, Randy, somehow you have my home phone number in your directory as
)my cell phone. (So I didn't get your messages last week until I
)returned to Seattle). For future reference, my cell phone number is
)[phone].
)
)
) Thanks! Kri sti
)0
)0
)0
)
).
2
.
Attachment C
June 5, 2006 Internal Meetig Document
.
.
.
.
.
RTO ISSUES - COLUMBIAGRI
Strategic Council Update
June 5, 2006
. PROCESS OVERVIEW - TIMELIN
· March 21, 2006 - A vista becomes sponsoring member of ColumbiaGrid
. April 14, 2006 - CölumbiaGrid Bylaws adopted; Avista an initial member
. July 12, 2006 - ColumbiaGrd thee-member board to be elected and seated
. October, 2006 - Functional Agreeent on Regional System Planing to be executed
. COLUMBIA GRID UPDATE
. Tacoma Power a new member
. Curent issue - Dispute reslution process for Regional System Planning proces
_ ColumbiaGrd to take disputes over its Regional Plan to PERC as a backstop
_ Issues: What facilities to be built?; Who is to build?; Allocation of costs?
. Publics had bee waverng, not wanting ColumbiaGrd to take dispute to FERC
. Two-year Funding Agreement (Avista poron: $565,000) (expene, not a loan)
. Additional ColumbiaGrd development costs over six month (Avista portion: -$57,000)
. Names under consideration for Board selection
. BACKGROUND - A VISTA POSITION-OCTOBER 2005
. With respet to addressing regional trsmission problems and opportities, the region must
move forward - "do nothing" is not acceptable
. Both the Grid West and Tramission Improvements Group (TIG) approaches are
stctally workable and can provide value to the region, contingent upon a critical mass of
reonal support
. For either approach to be viable and successful, Bonnevile must be a committed paricipant
. In whichever approach Bonnevile determines it will move forward - Grid West or TIG -
A vista will both parcipate and fud the applicable developmental activities
.
Attcbment D
October 13, 2006 E-mail Communcations
.
.
, Schlect, Jeff
Subjéct:
Schlect, Jeff
Friday, October 13, 20063:52 PM
Kopczyski, Don
Cloward, Randy
RE: Announcement of NTTG (Alternative RTO Group)
From:.t:
We'll likely want to monitor It as best we can from the sidelines. I see no nee for us to "directly engage" (frankly, we don't have
the staff availability nor do I have an appetie to throw money at yet another restrcturing effort), but it wil. of course. be prudent to
continue to keep our eyes on NTTG in case it might turn out to be a better option than ColumbiaGrid on down the Une. Without
Bonnevile's participation, however, the NTTG effort would be hard-pressed to carry more value to us than ColumbiaGrid. due to
our signifcant interrelationship with the BPA system.
Kop, Do
Friday, Ocr 13, 200 3:25 PM
SCIe Jef
RE: Annocemet of NlG (Alati RTO Group)
From:set:
To:SUbj
How are you planning on being involved with this?
From:se
To:
Cc:SUec
SClec, Jef
Fray, Ocr 13,20063:17 PM
#Co RTO CondlWapes, Sctt; Brmeing, Mike; McDgall, Jame
Annoucet of NlG (Alterative RT Grop)
FYI, Scott Waples and I were made aware toay that PacìfCorp, NorthWester and Idaho Power, along wi UAMPS and
Deseret, have publicized their intent to launch the "Norhern Tier Transmission Group,. an organization that would essentially be
in direct competition and conflict (via duplication of effort) with ColumbiaGrid. NTTG intends to address: (1) coordinated regional
.nning, (2) comon deterination of available trnsmission capacity, and (3) the pooing of regulating reserves.
~ if the transmission restructuring arena wasn't exciting enough already...
c:c: File: NTTG Announcement and Invitation.pdf::::
(Tis comunin betwen trsmissiOl and LSElerChnt employee contans no reicted trnsmissio infotion.)
Jef Schle
Maì1ager, Transmision Seres
AvìsTA Cørpnitlon
1411 E Mission Ave
Spokane, VVA 9920~-1902
509-495-451 (phone)
509-958542 (fax)
jeff.schlectlâavistacorp.ÇQm
.
1