20130104Avista to Staff 145,146.pdf

Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170 RECER/Ffl
20'I3JAN-1+ AMII:03
4VIS TA
Corp
January 3, 2013
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83720-0074
Attn: Karl T. Klein
Weldon B. Stutzman
Deputy Attorney General
i-%JI,. '_. - ..-iI
- ç4c
Re: Production Request of the Commission Staff in Case Nos. AVU-E-12-08 and
AVU-G- 12-07
Dear Mr. Klein and Mr. Stutzman,
Enclosed are an original and three copies of Avista's responses to IPUC Staffs production
requests in the above referenced docket. Included in this mailing are Avista's responses to
production requests 145 and 146. The electronic versions of the responses were emailed on
0 1/03/13 and are also being provided in electronic format on the CD included in this mailing.
If there are any questions regarding the enclosed information, please contact Paul Kimball at
[phone] or via e-mail at [e-mail]
Sincerely,
)e'_~ _e~' ';e~
Paul Kimball
Regulatory Analyst
Enclosures
CC: all parties
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 01/02/2013
CASE NO: AVU-E-12-08 / AVU-G-12-07 WITNESS: Don Kopczynski
REQUESTER: IPUC RESPONDER: Larry La Bolle
TYPE: Production Request DEPARTMENT: Federal & State Regulation
REQUEST NO.: Staff-145 TELEPHONE: [phone]
REQUEST:
Please explain how the costs of the Company's pipeline replacement program are allocated to each
jurisdiction. Specifically, describe whether the Company's cost allocation methodology for the
program is commensurate with the replacement of Aldyl A piping in each jurisdiction.
The costs of the program are (and will be) assigned to each state jurisdiction on the basis of the
amounts and costs of pipe that are actually replaced or remediated in each state where Avista
serves.
Page 1 of!
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 01/02/2013
CASE NO: AVU-E-12-08 / AVU-G-12-07 WITNESS: Don Kopczynski
REQUESTER: IPUC RESPONDER: Larry La Bolle
TYPE: Production Request DEPARTMENT: Federal & State Regulation
REQUEST NO.: Staff-146 TELEPHONE: [phone]
REQUEST:
Please provide estimates of Idaho's total construction costs and rate impacts for Avista' s Aldyl-A
replacement program under scenarios of 10 years, 15 years, 20 years, and 25 years. Assume the
Company's proposed rate of return holding items other than program costs constant. Provide the
rate impact in dollars per customer, per schedule, per year. Estimate the expected number of
AldyI-A leaks for each year of the program under each scenario.
RESPONSE:
Avista developed a response to a similar request made by Staff of the Washington Utilities and
Transportation Commission in 2012, wherein the Company provided its assessment of how the
overall Priority Aldyl A replacement program costs would differ if those costs were assumed to be
spent in equal amounts in every year of the program over projected time horizons often years,
fifteen years, twenty years and twenty-five years. The Washington portion of those costs was
assumed to be 46% of the system program costs, on the basis of the amounts of Priority Aldyl A
piping installed in that state. For the purpose of demonstrating how the Priority Aldyl A
construction costs could vary under the same time horizons, for the Idaho portion of its system,
Avista used this same analysis, allocating 18% of the system costs to Idaho, corresponding with
the portion of Priority Aldyl A piping that is installed in Idaho. The following table shows the
Idaho portion of the nominal program costs for each time horizon, the net present value of each,
and the estimated average annual costs.
Time Horizon (Years) Program Cost Program Cost (NPV) Average Annual Program
(nominal) Cost (nominal)
10 $47,256,300 $36,775,260 $4,725,630
15 $51,571,620 $31,306,860 $3,438,108
20 $57,296,700 $25,317,540 $2,864,835
25 $63,718,020 $20,046,420 $2,548,720
Importantly, this analysis, for the following reasons, is for illustration purposes only. First, it is
based on the initial estimate of program costs (escalated at 2.3% annually for inflation) reported in
Avista's Protocol for Managing Select Aldyl A Piping. As Avista continues to gather
contemporary experience in prioritizing the annual replacement projects, contracting for the
resources and equipment necessary to complete them, and revising its estimates of ongoing unit
construction costs, we wanted to use the same cost basis, as we did in Washington, for responding
to this request so that the results would be comparable. Second, this analysis reflects no differences
in the estimated unit costs ($/foot) among the replacement time scenarios. Avista believes the unit
Pagel of 3
costs may increase substantially if the replacement timeline were to be reduced from twenty years
(toward ten years) due to the potential increased costs to accelerate the program. Finally, this
analysis also presumes that an equal and proportional amount of replacement work is performed in
each state (Oregon, Idaho and Washington), in each year of the program, which will likely not be
the case. Annual replacement projects, under the Priority Aldyl A program, are determined by the
prioritization process described in detail in Avista's Priority Aldyl A Protocol document. This
prioritization is based on risk mitigation as viewed across the Company's entire system,
irrespective ofjurisdictional boundaries.
Estimating Customer Rate Impacts
To estimate the relative rate impacts for each customer class in Idaho for each year, under each
time scenario, Avista used the average annual costs for each time horizon for the program in Idaho,
as provided in the table above. A table showing the estimated rate impacts for each customer
schedule, for each year, under each time scenario, is included as Staff _PR_i 46_ Attachment A.
The associated estimated revenue requirement calculations for each scenario are included as
Staff _PR_146_Attachment B (10 year scenario), Staff_PR_i 46 —Attachment C (15 year scenario),
Staff _PR_i 46_Attachment D (20 year scenario), and Staff_PR_146_Attachment E (25 year
scenario).
At the time of the filing, no costs associated with this program were included in the test year nor
planned for 2013. Updated information indicates that at this time the Company is planning to
rebuild 400 tees in Idaho (as part of Tapping Tees Projects) during 2013. The estimated 2013
Idaho investment is approximately $400,000 which results in additional revenue requirement of
approximately $28,000.
Estimating the Expected Number of Leaks in Avista's Priority Aldyl A Piping in Idaho
Avista is able to provide a representation of the expected number of leaks in its Priority Aldyl A
piping installed in Idaho, for each year of the 10, 15, 20 and 25-year replacement scenarios, by
relying on surrogate data from a previously-developed study of leak histories for its Priority Aldyl
A piping in Washington. For this exercise, Avista used Availability Workbench modeling, as
described in its Protocol document, to create a forecast of expected leaks for the Washington leak
data. The forecast of expected leaks was then modeled for each of the time horizon replacement
scenarios, reflecting the manner in which the 'speed' of replacement of the pipe influenced the
overall frequency and number of expected leaks. This forecast of expected leaks for each
replacement scenario was then prorated for the portion of Avista's priority Aldyl A piping that is
located in Idaho (18%). These forecasts, which do illustrate the critical relationship between the
number of leaks expected to occur over time and the duration of the Priority Aldyl A replacement
program, are provided in the table on the next page.
Page 2 of 3
Pattern of Priority Aldyl A leaks for Idaho, as Prorated from a Projection of Leaks for Data from Washington
State as Developed by Availability Workbench Modeling
Year 10 years 15 years 20 years 25 years
2012 2 5 7 7
2013 2 5 7 9
2014 2 5 8 10
2015 2 5 9 12
2016 2 5 11 14
2017 2 5 10 16
2018 1 5 11 16
2019 1 3 11 19
2020 0 3 12 22
2021 0 3 12 22
2022 3 12 24
2023 2 11 22
2024 2 9 22
2025 1 8 22
2026 0 7 24
2027 7 22
2028 5 21
2029 4 17
2030 1 16
2031 0 14
2032 14
2033 9
2034 7
2035 2
2036 0
Total Projected 14 52 162 383
Page 3 of 3
Avista Utilities
Case No. AVU-G-12-07
IPUC Staff Production Request No. 146
Estimated Rate Impact of Pipe Replacement Program Company Proposed rate of return, all items other than program costs constant
10 Year Program
Idaho Jurisdiction Estimate
Estimated Revenue Requirement of Program
Proposed Equal%
Rate Impact Total $ Revenue assignment
Schedule 101 $ 51,531,000 76%
Schedule 111/112 15,830,000 23%
Schedule 131/132 213,000 0%
Schedule 146 326,000 0%
Total $ 67,900,000 100%
AVU-G-12-07
Requested
Year Year Year Year Year Year
Amount
$
$ 713,184 $ 690,770 $ 669,397 $ 648,986 $ 629,467 $ 610,770
$ - $ 541,253 $ 524,242 $ 508,022 $ 492,531 $ 477,718 $ 463,529
- 166,270 161,044 156,061 151,303 146,752 142,393
- 2,237 2,167 2,100 2,036 1,975 1,916
- 3,424 3,317 3,214 3,116 3,022 2,932
$ - $ 713,184 $ 690,770 $ 669,397 $ 648,986 $ 629,467 $ 610,770
Rate Impact $/Cust
Schedule 101
Schedule 111/112
Schedule 131/132
Schedule 146
Total
Percent Increase
Schedule 101
Schedule 111/112
Schedule 131/132
Schedule 146
Total
Annual Average $ per Customer
$0.00 $7.33 $7.10 $6.88 $6.67 $6.47 6.27
$0.00 $129.52 $125.45 $121.57 $117.86 $114.32 $110.92
$0.00 $2,237.24 $2,166.92 $2,099.88 $2,035.85 $1,974.62 $1,915.97
$0.00 $684.83 $663.30 $642.78 $623.18 $604.44 $586.48
$0.00 $9.49 $9.19 $8.91 $8.63 $8.37 $8.13
0.00% 1.05% 1.01% 0.97% 0.93% 0.89% 0.86%
0.00% 1.05% 1.01% 0.97% 0.93% 0.89% 0.86%
0.00% 1.05% 1.01% 0.97% 0.93% 0.89% 0.86%
0.00% 1.05% 1.01% 0.97% 0.93% 0.89% 0.86%
0.00% 1.05% 1.01% 0.97% 0.93% 0.89% 0.86%
Avg Customers
73,875
1,284
1
5
75,164
Note: Annual Revenue Requirement on New Investments declines over time because accumulated depreciation and
accumulated Deferred FIT on all prior vintages reduces current year rate base.
Staff_PR_146Attachment A.xlsx Page 1
Avg Customers
73,875
1,284
1
5
75,164
Annual Average $ per Customer
$6.09 $5.91 $5.74 $5.56
$107.66 $104.53 $101.43 $98.32
$1,859.71 $1,805.66 $1,751.98 $1,698.30
$569.26 $552.72 $536.29 $519.86
$7.89 $7.66 $7.43 $7.20
0.82% 0.79% 0.76% 0.74%
0.82% 0.79% 0.76% 0.74%
0.82% 0.79% 0.76% 0.74%
0.82% 0.79% 0.76% 0.74%
0.82% 0.79% 0.76% 0.74%
Rate Impact $/Cust
Schedule 101
Schedule 111/112
Schedule 131/132
Schedule 146
Total
Percent Increase
Schedule 101
Schedule 111/112
Schedule 131/132
Schedule 146
Total
Avista Utilities
Case No. AVU-G-12-07
IPUC Staff Production Request No. 146
Estimated Rate Impact of Pipe Replacement Program
10 Year Program
Idaho Jurisdiction Estimate Year 7 Year 8 Year 9 Year 10
Estimated Revenue Requirement of Program $ 592,838 $ 575,609 $ 558,495 $ 541,383
Proposed Equal %
Rate Impact Total $ Revenue assignment
Schedule 101 $ 51,531,000 76% $ 449,919 $ 436,844 $ 423,856 $ 410,869
Schedule 111/112 15,830,000 23% 138,212 134,196 130,206 126,216
Schedule 131/132 213,000 0% 1,860 1,806 1,752 1,698
Schedule 146 326,000 0% 2,846 2,764 2,681 2,599
Total $ 67,900,000 100% $ 592,838 $ 575,609 $ 558,495 $ 541,383
Note: Annual Revenue Requirement on New lnvestmE
accumulated Deferred FIT on all prior vintages
Staff _PR_146_Attachment A.xlsx Page 2
Avista Utilities
Case No. AVU-G-12-07
IPUC Staff Production Request No. 146
Estimated Rate Impact of Pipe Replacement Program Company Proposed rate of return, all items other than program costs constant
15 Year Program
Idaho Jurisdiction Estimate
Estimated Revenue Requirement of Program
Proposed Equal %
Rate Impact Total $ Revenue assignment
Schedule 101 $ 51,531,000 76%
Schedule 111/112 15,830,000 23%
Schedule 131/132 213,000 0%
Schedule 146 326,000 0%
Total $ 67,900,000 100%
Rate Impact $/Cust Avg Customers
Schedule 101 73,875
Schedule 111/112 1,284
Schedule 131/132 1
Schedule 146 5
Total 75,164
Percent Increase
Schedule 101
Schedule 111/112
Schedule 131/132
Schedule 146
Total
AVU-G-12-07
Requested Year 1 Year 2 Year 3 Year Year 5 Year 6 Year 7
Amount
$ - $ 518,874 $ 502,566 $487,016 $472,166 $457,965 $ 444,363 $ 431,316
$ - $ 393,786 $ 381,410 $ 369,609 $ 358,339 $ 347,561 $ 337,238 $ 327,336
- 120,969 117,167 113,542 110,079 106,769 103,597 100,556
- 1,628 1,577 1,528 1,481 1,437 1,394 1,353
- 2,491 2,413 2,338 2,267 2,199 2,133 2,071
$ - $518,874 $502,566 $487,016 $472,166 $457,965 $444,363 $431,316
Annual Average $ per Customer
$0.00 $5.33 $5.16 $5.00 $4.85 $4.70 $4.57 $4.43
$0.00 $94.23 $91.27 $88.45 $85.75 $83.17 $80.70 $78.33
$0.00 $1,627.69 $1,576.53 $1,527.75 $1,481.17 $1,436.62 $1,393.95 $1,353.02
$0.00 $498.24 $482.58 $467.65 $453.39 $439.75 $426.69 $414.16
$0.00 $6.90 $6.69 $6.48 $6.28 $6.09 $5.91 $5.74
0.00% 0.76% 0.73% 0.71% 0.68% 0.66% 0.63% 0.61%
0.00% 0.76% 0.73% 0.71% 0.68% 0.66% 0.63% 0.61%
0.00% 0.76% 0.73% 0.71% 0.68% 0.66% 0.63% 0.61%
0.00% 0.76% 0.73% 0.71% 0.68% 0.66% 0.63% 0.61%
0.00% 0.76% 0.73% 0.71% 0.68% 0.66% 0.63% 0.61%
Note: Annual Revenue Requirement on New Investments declines over time because accumulated depreciation and
accumulated Deferred FIT on all prior vintages reduces current year rate base.
Staff-PR-146-Attachment A.xlsx Page 3
Avista Utilities
Case No. AVU-G-12-07
IPUC Staff Production Request No. 146
Estimated Rate Impact of Pipe Replacement Program
15 Year Program
Idaho Jurisdiction Estimate Year Year Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Estimated Revenue Requirement of Program $418,781 $ 406,330 $ 393,880 $ 381,429 $ 368,980 $ 356,529 5 344,079 5 331,628
Proposed Equal %
Rate Impact Total $ Revenue assignment
Schedule 101 $ 51,531,000 76% $ 317,823 $ 308,374 $ 298,926 $ 289,476 $ 280,028 $ 270,579 $ 261,130 $ 251,681
Schedule 111/112 15,830,000 23% 97,633 94,731 91,828 88,925 86,023 83,120 80,218 77,315
Schedule 131/132 213,000 0% 1,314 1,275 1,236 1,197 1,157 1,118 1,079 1,040
Schedule 146 326,000 0% 2,011 1,951 1,891 1,831 1,772 1,712 1,652 1,592
Total $ 67,900,000 100% $418,781 $ 406,330 $ 393,880 $ 381,429 $ 368,980 $ 356,529 $ 344,079 $ 331,628
Rate Impact $/Cust Avg Customers Annual Average $ per Customer
Schedule 101 73,875 $4.30 $4.17 $4.05 $3.92 $3.79 $3.66 $3.53 $3.41
Schedule 111/112 1,284 $76.05 $73.79 $71.53 $69.27 $67.01 $64.75 $62.49 $60.23
Schedule 131/132 1 $1,313.70 $1,274.64 $1,235.59 $1,196.53 $1,157.48 $1,118.42 $1,079.37 $1,040.31
Schedule 146 5 $402.13 $390.17 $378.22 $366.26 $354.31 $342.35 $330.40 $318.44
Total 75,164 $5.57 $5.41 $5.24 $5.07 $4.91 $4.74 $4.58 $4.41
Percent Increase
Schedule 101 0.59% 0.57% 0.55% 0.53% 0.51% 0.49% 0.47% 0.45%
Schedule 111/112 0.59% 0.57% 0.55% 0.53% 0.51% 0.49% 0.47% 0.45%
Schedule 131/132 0.59% 0.57% 0.55% 0.53% 0.51% 0.49% 047% 0.45%
Schedule 146 0.59% 0.57% 0.55% 0.53% 0.51% 0.49% 0.47% 0.45%
Total 0.59% 0.57% 0.55% 0.53% 0.51% 0.49% 0.47% 0.45%
Note: Annual Revenue Requirement on New lnvestm
accumulated Deferred FIT on all prior vintage:
Staff-PR-146-Attachment A.xlsx Page 4
Avista Utilities
Case No. AVU-G-12-07
IPUC Staff Production Request No. 146
Estimated Rate Impact of Pipe Replacement Program Company Proposed rate of return, all items other than program costs constant
20 Year Program
Idaho Jurisdiction Estimate
Estimated Revenue Requirement of Program
Proposed Equal%
Rate Impact Total $ Revenue assignment
Schedule 101 $ 51,531,000 76%
Schedule 111/112 15,830,000 23%
Schedule 131/132 213,000 0%
Schedule 146 326,000 0%
Total $ 67,900,000 100%
AVU-G-12-07
Requested Year 1 Year 2 Year 3 Year Year Year 6 Year
Amount
$

$432,356 $418,768 $405,811 $ 393,437 $ 381,604 $ 370,269 $ 359,398
$ - $ 328,126 $ 317,813 $ 307,980 $ 298,589 $ 289,609 $ 281,007 $ 272,756
- 100,798 97,630 94,609 91,725 88,966 86,323 83,789
- 1,356 1,314 1,273 1,234 1,197 1,162 1,127
- 2,076 2,011 1,948 1,889 1,832 1,778 1,726
$ - $432,356 $418,768 $405,811 $ 393,437 $ 381,604 $ 370,269 $ 359,398
Rate Impact $/Cust
Schedule 101
Schedule 111/112
Schedule 131/132
Schedule 146
Total
Percent Increase
Schedule 101
Schedule 111/112
Schedule 131/132
Schedule 146
Total
Avg Customers
73,875
1,284
1
5
75,164
Annual Average $ per Customer
$0.00 $4.44 $4.30 $4.17
$0.00 $78.52 $76.05 $73.70
$0.00 $1,356.29 $1,313.66 $1,273.01
$0.00 $415.16 $402.12 $389.67
$0.00 $5.75 $5.57 $5.40
$4.04 $3.92 $3.80 $3.69
$71.45 $69.30 $67.24 $65.27
$1,234.20 $1,197.08 $1,161.52 $1,127.42
$377.79 $366.43 $355.55 $345.11
$5.23 $5.08 $4.93 $4.78
0.00% 0.64% 0.61% 0.59% 0.57% 0.55% 0.53% 0.51%
0.00% 0.64% 0.61% 0.59% 0.57% 0.55% 0.53% 0.51%
0.00% 0.64% 0.61% 0.59% 0.57% 0.55% 0.53% 0.51%
0.00% 0.64% 0.61% 0.59% 0.57% 0.55% 0.53% 0.51%
0.00% 0.64% 0.61% 0.59% 0.57% 0.55% 0.53% 0.51%
Note: Annual Revenue Requirement on New Investments declines over time because accumulated depreciation and
accumulated Deferred FIT on all prior vintages reduces current year rate base.
Staff-PR-146-Attachment A.xlsx Page 5
Avista Utilities
Case No. AVU-G-12-07
IPUC Staff Production Request No. 146
Estimated Rate Impact of Pipe Replacement Program
20 Year Program
Idaho Jurisdiction Estimate Year 8 Year Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Estimated Revenue Requirement of Program $ 348,953 $ 338,578 $ 328,204 $ 317,830 $ 307,456 $ 297,081 $ 286,707 $ 276,332
Proposed Equal%
Rate Impact Total $ Revenue assignment
Schedule 101 $ 51,531,000 76% $ 264,829 $ 256,955 $ 249,083 $ 241,209 $ 233,336 $ 225,462 $ 217,589 $ 209,715
Schedule 111/112 15,830,000 23% 81,354 78,935 76,517 74,098 71,679 69,261 66,842 64,423
Schedule 131/132 213,000 0% 1,095 1,062 1,030 997 964 932 899 867
Schedule 146 326,000 0% 1,675 1,626 1,576 1,526 1,476 1,426 1,377 1,327
Total $ 67,900,000 100% $ 348,953 $ 338,578 $ 328,204 $ 317,830 $ 307,456 $ 297,081 $ 286,707 $ 276,332
Rate Impact $/Cust Avg Customers Annual Average $ per Customer
Schedule 101 73,875 $3.58 $3.48 $3.37 $3.27 $3.16 $3.05 $2.95 $2.84
Schedule 111/112 1,284 $63.37 $61.49 $59.60 $57.72 $55.84 $53.95 $52.07 $50.18
Schedule 131/132 1 $1,094.65 $1,062.11 $1,029.57 $997.02 $964.48 $931.93 $899.39 $866.85
Schedule 146 5 $335.08 $325.11 $315.15 $305.19 $295.23 $285.27 $275.31 $265.34
Total 75,164 $4.64 $4.50 $4.37 $4.23 $4.09 $3.95 $3.81 $3.68
Percent Increase
Schedule 101
Schedule 111/112
Schedule 131/132
Schedule 146
Total
Note: Annual Revenue Requirement on New lnvestmc
accumulated Deferred FIT on all prior vintages
0.49% 0.48% 0.46% 0.44% 0.43% 0.41% 0.39% 0.38%
0.49% 0.48% 0.46% 0.44% 0.43% 0.41% 0.39% 0.38%
0.49% 0.48% 0.46% 0.44% 0.43% 0.41% 0.39% 0.38%
0.49% 0.48% 0.46% 0.44% 0.43% 0.41% 0.39% 0.38%
0.49% 0.48% 0.46% 0.44% 0.43% 0.41% 0.39% 0.38%
Staff-PR-146-Attachment A.xlsx Page 6
Avista Utilities
Case No. AVU-G-12-07
IPUC Staff Production Request No. 146
Estimated Rate Impact of Pipe Replacement Program
20 Year Program
Idaho Jurisdiction Estimate Year 16 Year 17 Year 18 Year 19 Year 20
Estimated Revenue Requirement of Program $ 265,959 $ 255,584 $ 245,210 $ 234,835 $ 224,461
Proposed Equal %
Rate Impact Total $ Revenue assignment
Schedule 101 $ 51,531,000 76% $ 201,843 $ 193,969 $ 186,096 $ 178,222 $ 170,349
Schedule 111/112 15,830,000 23% 62,005 59,586 57,167 54,749 52,330
Schedule 131/132 213,000 0% 834 802 769 737 704
Schedule 146 326,000 0% 1,277 1,227 1,177 1,127 1,078
Total $ 67,900,000 100% $ 265,959 $ 255,584 $ 245,210 $ 234,835 $ 224,461
Rate Impact $/Cust Avg Customers Annual Average $ per Customer
Schedule 101 73,875 $2.73 $2.63 $2.52 $2.41 $2.31
Schedule 111/112 1,284 $48.30 $46.42 $44.53 $42.65 $40.76
Schedule 131/132 1 $834.30 $801.76 $769.22 $736.67 $704.13
Schedule 146 5 $255.38 $245.42 $235.46 $225.50 $215.54
Total 75,164 $3.54 $3.40 $3.26 $3.12 $2.99
Percent Increase
Schedule 101 0.36% 0.35% 0.33% 0.32% 0.30%
Schedule 111/112 0.36% 0.35% 0.33% 0.32% 0.30%
Schedule 131/132 0.36% 0.35% 0.33% 0.32% 0.30%
Schedule 146 0.36% 0.35% 0.33% 0.32% 0.30%
Total 0.36% 0.35% 0.33% 0.32% 0.30%
Note: Annual Revenue Requirement on New Investm
accumulated Deferred FIT on all prior vintages
Staff—PR-146—Attachment A.xlsx Page 7
Avista Utilities
Case No. AVU-G-12-07
IPUC Staff Production Request No. 146
Estimated Rate Impact of Pipe Replacement Program Company Proposed rate of return, all items other than program costs constant
25 Year Program AVU-G-12-07
Idaho Jurisdiction Estimate Requested Year Year Year Year Year Year Year Year
Amount
Estimated Revenue Requirement of Program $ - $ 384,649 $ 372,559 $ 361,032 $ 350,Q24 $ 339,496 $ 329,413 $ 319,741 $ 310,449
Proposed Equal %
Rate Impact Total $ Revenue assignment
Schedule 101 $ 51,531,000 76% $ - $ 291,919 $ 282,745 $ 273,996 $ 265,642 $ 257,652 $ 250,000 $ 242,659 $ 235,607
Schedule 111/112 15,830,000 23% - 89,676 86,857 84,170 81,603 79,149 76,798 74,543 72,377
Schedule 131/132 213,000 0% - 1,207 1,169 1,133 1,098 1,065 1,033 1,003 974
Schedule 146 326,000 0% - 1,847 1,789 1,733 1,681 1,630 1,582 1,535 1,491
Total $ 67,900,000 1007. $ - $ 384,649 $ 372,559 $ 361,032 $ 350,024 $ 339,496 $ 329,413 $ 319,741 $ 310,449
Rate Impact $/Cust Avg Customers Annual Average $ per Customer
Schedule 101 73,875 $0.00 $3.95 $3.83 $3.71 $3.60 $3.49 $3.38 $3.28 $3.19
Schedule 111/112 1,284 $0.00 $69.85 $67.66 $65.57 $63.57 $61.65 $59.82 $58.07 $56.38
Schedule 131/132 1 $0.00 $1,206.63 $1,168.71 $1,132.55 $1,098.01 $1,064.99 $1,033.36 $1,003.02 $973.87
Schedule 146 5 $0.00 $369.35 $357.74 $346.68 $336.11 $326.00 $316.31 $307.03 $298.10
Total 75,164 $0.00 $5.12 $4.96 $4.80 $4.66 $4.52 $4.38 $4.25 $4.13
Percent Increase
Schedule 101 0.00% 0.57% 0.55% 0.53% 0.51% 0.49% 0.47% 0.46% 0.44%
Schedule 111/112 0.00% 0.57% 0.55% 0.53% 0.51% 0.49% 0.47% 0.46% 0.44%
Schedule 131/132 0.00% 0.57% 0.55% 0.53% 0.51% 0.49% 0.47% 0.46% 0.44%
Schedule 146 0.00% 0.57% 0.55% 0.53% 0.51% 0.49% 0.47% 0.46% 0.44%
Total 0.00% 0.57% 0.55% 0.53% 0.51% 0.49% 0.47% 0.46% 0.44%
Note: Annual Revenue Requirement on New Investments declines overtime because accumulated depreciation and
accumulated Deferred FIT on all prior vintages reduces current year rate base.
Staff-PR-146-Attachment A.xlsx Page 8
Avista Utilities
Case No. AVU-G-12-07
IPUC Staff Production Request No. 146
Estimated Rate Impact of Pipe Replacement Program
25 Year Program
Idaho Jurisdiction Estimate Year Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17
Estimated Revenue Requirement of Program $ 301,218 $ 291,989 $ 282,759 $ 273,530 $ 264,300 $ 255,071 $ 245,841 $ 236,612 $ 227,382
Proposed Equal%
Rate Impact Total $ Revenue assignment
Schedule 101 $ 51,531,000 76% $ 228,602 $ 221,598 $ 214,593 $ 207,589 $ 200,584 $ 193,580 $ 186,575 $ 179,571 $ 172,566
Schedule 111/112 15,830,000 23% 70,225 68,074 65,922 63,770 61,618 59,466 57,315 55,163 53,011
Schedule 131/132 213,000 0% 945 916 887 858 829 800 771 742 713
Schedule 146 326,000 0% 1,446 1,402 1,358 1,313 1,269 1,225 1,180 1,136 1,092
Total $ 67,900,000 100% $ 301,218 $ 291,989 $ 282,759 $ 273,530 $ 264,300 $ 255,071 $ 245,841 $ 236,612 $ 227,382
Rate Impact $/Cust Avg Customers Annual Average $ per Customer
Schedule 101 73,875 $3.09 $3.00 $2.90 $2.81 $2.72 $2.62 $2.53 $2.43 $2.34
Schedule 111/112 1,284 $54.70 $53.03 $51.35 $49.67 $48.00 $46.32 $44.65 $42.97 $41.29
Schedule 131/132 1 $944.91 $915.96 $887.01 $858.05 $829.10 $800.15 $771.19 $742.24 $713.29
Schedule 146 5 $289.24 $280.38 $271.52 $262.65 $253.79 $244.93 $236.07 $227.20 $218.34
Total 75,164 $4.01 $3.88 $3.76 $3.64 $3.52 $3.39 $3.27 $3.15 $3.03
Percent Increase
Schedule 101 0.43% 0.41% 0.40% 0.38% 0.37% 0.35% 0.34% 0.33% 0.31%
Schedule 111/112 0.43% 0.41% 0.40% 0.38% 0.37% 0.35% 0.34% 0.33% 0.31%
Schedule 131/132 0.43% 0.41% 0.40% 0.38% 0.37% 0.35% 0.34% 0.33% 0.31%
Schedule 146 0.43% 0.41% 0.40% 0.38% 0.37% 0.35% 0.34% 0.33% 0.31%
Total 0.43% 0.41% 0.40% 0.38% 0.37% 0.35% 0.34% 0.33% 0.31%
Note: Annual Revenue Requirement on New lnvestm
accumulated Deferred FIT on all prior vintage
Staff-PR-146-Attachment A.xlsx Page 9
Avista Utilities
Case No. AVU-G-12-07
IPUC Staff Production Request No. 146
Estimated Rate Impact of Pipe Replacement Program
25 Year Program
Idaho Jurisdiction Estimate Year 18 Year 19 Year20 Year 21 Year 22 Year 23 Year24 Year 25
Estimated Revenue Requirement of Program $ 218,153 $ 208,923 $ 199,694 $ 192,777 $ 188,174 $ 183,571 $ 178,968 $ 174,365
Proposed Equal%
Rate Impact Total $ Revenue assignment
Schedule 101 $ 51,531,000 76% $ 165,561 $ 158,557 $ 151,552 $ 146,303 $ 142,810 $ 139,317 $ 135,823 $ 132,330
Schedule 111/112 15,830,000 23% 50,859 48,708 46,556 44,943 43,870 42,797 41,724 40,651
Schedule 131/132 213,000 0% 684 655 626 605 590 576 561 547
Schedule 146 326,000 0% 1,047 1,003 959 926 903 881 859 837
Total $ 67,900,000 100% $ 218,153 $ 208,923 $ 199,694 $ 192,777 $ 188,174 $ 183,571 $ 178,968 $ 174,365
Rate Impact $/Cust Avg Customers Annual Average $ per Customer
Schedule 101 73,875 $2.24 $2.15 $2.05 $1.98 $1.93 $1.89 $1.84 $1.79
Schedule 111/112 1,284 $39.62 $37.94 $36.27 $35.01 $34.17 $33.34 $32.50 $31.67
Schedule 131/132 1 $684.34 $655.38 $626.43 $604.73 $590.30 $575.86 $561.42 $546.98
Schedule 146 5 $209.48 $200.61 $191.75 $185.11 $180.69 $176.27 $171.85 $167.43
Total 75,164 $2.90 $2.78 $2.66 $2.56 $2.50 $2.44 $2.38 $2.32
Percent Increase
Schedule 101
Schedule 111/112
Schedule 131/132
Schedule 146
Total
Note: Annual Revenue Requirement on New lnvestm
accumulated Deferred FIT on all prior vintage:
0.30% 0.29% 0.27% 0.26% 0.25% 0.25% 0.24% 0.23%
0.30% 0.29% 0.27% 0.26% 0.25% 0.25% 0.24% 0.23%
0.30% 0.29% 0.27% 0.26% 0.25% 0.25% 0.24% 0.23%
0.30% 0.29% 0.27% 0.26% 0.25% 0.25% 0.249o' 0.23%
0.30% 0.29% 0.27% 0.26% 0.25% 0.25% 0.24% 0.23%
Staff-PR-146-Attachment A.xlsx
Page 10
Avista Utilities
AVU-G-12-07
Staff Production Request No. 146
Estimated Revenue Requirement Calculation

Estimated rate impact of pipe replacement program at proposed rate of return and all other costs constant 10 Years
Year Year Year Year Year Year Year Year Year Year 10
Estimated Capital Investment $4,725,630 $ 4,725,630 $ 4,725,630 $ 4,725,630 $ 4,725,630 $ 4,725,630 $ 4,725,630 $ 4,725,630 $ 4,725,630 $ 4,725,630
Accumulated Depreciation (56,471) (169,414) (282,356) (395,299) (508,242) (621,184) (734,127) (847,069) (960,012) (1,072,954)
Accumulated Deferred DFIT (42,259) (122,129) (193,035) (255,671) (310,632) (358,515) (399,831) (435,093) (469,364) (503,617)
Estimated Net Rate Base 4,626,900 4,434,087 4,250,239 4,074,660 3,906,756 3,745,931 3,591,673 3,443,467 3,296,255 3,149,058
Return on Rate Base 0.0846 $ 391,436 $ 375,124 $ 359,570 $ 344,716 $ 330,512 $ 316,906 $ 303,855 $ 291,317 $ 278,863 $ 266,410
Depreciation Expense 2013 and after 0.0239 112,943 112,943 112,943 112,943 112,943 112,943 112,943 112,943 112,943 112,943
Property Tax Expense 0.01246 58,881 58,881 58,881 58,881 58,881 58,881 58,881 58,881 58,881 58,881
Total Expenses 171,824 171,824 171,824 171,824 171,824 171,824 171,824 171,824 171,824 171,824
Net Operating Income Before FIT (171,824) (171,824) (171,824) (171,824) (171,824) (171,824) (171,824) (171,824) (171,824) (171,824)
FIT Benefit of Depreciation and Property Tax 60,138 60,138 60,138 60,138 60,138 60,138 60,138 60,138 60,138 60,138
FIT Benefit of Interest Expense 0.0301 48,744 46,713 44,776 42,927 41,158 39,463 37,838 36,277 34,726 33,175
Net Operating Income Impact $ (62,941) $ (64,972) $ (66,909) $ (68,759) $ (70,528) $ (72,222) $ (73,847) $ (75,409) $ (76,959) $ (78,510)
Net Operating Income Requirement $ 454,377 $ 440,096 $ 426,479 $ 413,475 $ 401,039 $ 389,128 $ 377,703 $ 366,726 $ 355,823 $ 344,921
Conversion Factor 0.63711
Total Revenue Requirement of Program $ 713,184 $ 690,770 $ 669,397 $ 648,986 $ 629,467 $ 610,770 $ 592,838 $ 575,609 $ 558,495 $ 541,383
Staff-PR-146-Attachment 8 (10 year).xlsx Page 1
Year 5 Year 6 Year 7

269,975 249,750 230,989

291,902 269,975 249,750

315,530 291,902 269,975

341,143 315,530 291,902

177,211 341,143 315,530

0 177,211 341,143

o 0 177,211

0 0 0

O 0 0

0 0 0
Year Year

213,693 210,858

230,989 213,693

249,750 230,989

269,975 249,750

291,902 269,975

315,530 291,902

341,143 315,530

177,211 341,143

0 177,211

0 0
Year 10
210,80
210,858
213,693
230,989
249,750
269,975
291,902
315,530
341,143
177,211
Total Basis

2,511,861 2,213,769

2,301,051 2,424,579

2,090,193 2,635,437

1,876,500 2,849,130

1,645,512 3,080,118

1,395,762 3,329,868

1,125,787 3,599,843

833,885 3,891,745
518,354 4,207,276

177,211 4,548,419
Tax Depreciation Year 1 Year 2 Year 3 Year 4
150% Declining Bal
1/2-Year Convention 0.03750 0.07219 0.06677 0.06177
Estimated Capital 20-Year
Investment
Year Year 1 Year 2 Year 3 Year
1 4,725,630 177,211 341,143 315,530 291,902
2 4,725,630 0 177,211 341,143 315,530
3 4,725,630 0 0 177,211 341,143
4 4,725,630 0 0 0 177,211
5 4,725,630 0 0 0 0
6 4,725,630 0 0 0 0
7 4,725,630 0 0 0 0
8 4,725,630 0 0 0 0
9 4,725,630 0 0 0 0
10 4,725,630 0 0 0 0
47,256,300
Year 5 Year 6 Year Year Year 9 Year 10
0.05713 0.05285 0.04888 0.04522 0.04462 0.04461
Tax Depreciation 177,211 518,354 833,885 1,125,787 1,395,762 1,645,512 1,876,500 2,090,193 2,301,051 2,511,861
Book Depreciation 56,471 169,414 282,356 395,299 508,242 621,184 734,127 847,069 960,012 1,072,954
Excess Tax Over Book Depreciation 120,740 348,941 551,528 730,488 887,521 1,024,328 1,142,374 1,243,124 1,341,039 1,438,907
Deferred FIT (42,259) (122,129) (193,035) (255,671) (310,632) (358,515) (399,831) (435,093) (469,364) (503,617)
Book Depreciation Year 1 Year 2 Year 3 Year 4 Year Year 6 Year 7 Year 8 Year 9 Year 10
2013 and> Vintage 0.01195 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390
Estimated Capital Account 376 Rates
Investment
Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Book Value
1 4,725,630 56,471 112,943 112,943 112,943 112,943 112,943 112,943 112,943 112,943 112,943 1,072,954 3,652,676
2 4,725,630 0 56,471 112,943 112,943 112,943 112,943 112,943 112,943 112,943 112,943 960,012 3,765,618
3 4,725,630 0 0 56,471 112,943 112,943 112,943 112,943 112,943 112,943 112,943 847,069 3,878,561
4 4,725,630 0 0 0 56,471 112,943 112,943 112,943 112,943 112,943 112,943 734,127 3,991,503
5 4,725,630 0 0 0 0 56,471 112,943 112,943 112,943 112,943 112,943 621,184 4,104,446
6 4,725,630 0 0 0 0 0 56,471 112,943 112,943 112,943 112,943 508,242 4,217,388
7 4,725,630 0 0 0 0 0 0 56,471 112,943 112,943 112,943 395,299 4,330,331
8 4,725,630 0 0 0 0 0 0 0 56,471 112,943 112,943 282,356 4,443,274
9 4,725,630 0 0 0 0 0 0 0 0 56,471 112,943 169,414 4,556,216
10 4,725,630 0 0 0 0 0 0 0 0 0 56,471 56,471 4,669,159
Book Depreciation 56,471 169,414 282,356 395,299 508,242 621,184 734,127 847,069 960,012 1,072,954
StaffjR_146_Attachment B (10 year).xlsx Page 2
Avista Utilities
AVU-G-12-07
Staff Production Request No. 146
Estimated Revenue Requirement Calculation
Estimated rate impact of pipe replacement program at proposed rate of return and all other costs constant 15 Years
Year Year Year Year Years Year Year Year Year Year 10 Year 11
Estimated Capital Investment
Accumulated Depreciation
Accumulated Deferred DFIT
Estimated Net Rate Base
Return on Rate Base
Depreciation Expense 2013 and after
Property Tax Expense
Total Expenses
Net Operating Income Before FIT
FIT Benefit of Depreciation and Property Tax
FIT Benefit of Interest Expense
Net Operating Income Impact
$ 3,438,108 $ 3,438,108 $ 3,438,108 $ 3,438,108 $ 3,438,108 $ 3,438,108 $ 3,438,108 $ 3,438,108 $ 3,438,108 $ 3,438,108 $ 3,438,108
(41,085) (123,256) (205,427) (287,598) (369,769) (451,939) (534,110) (616,281) (698,452) (780,622) (862,793)
(30,745) (88,854) (140,442) (186,012) (225,999) (260,836) (290,895) (316,550) (341,483) (366,404) (391,337)
3,366,277 3,225,997 3,092,239 2,964,498 2,842,341 2,725,333 2,613,103 2,505,277 2,398,173 2,291,081 2,183,977
0.0846$ 284,787 $ 272,919 $ 261,603 $ 250,797 $ 240,462 $ 230,563 $ 221,069 $ 211,946 $ 202,885 $ 193,25 $ 184,764
0.0239 82,171 82,171 82,171 82,171 82,171 82,171 82,171 82,171 82,171 82,171 82,171
0.01246 42,839 42,839 42,839 42,839 42,839 42,839 42,839 42,839 42,839 42,839 42,839
125,010 125,010 125,010 125,010 125,010 125,010 125,010 125,010 125,010 125,010 125,010
(125,010) (125,010) (125,010) (125,010) (125,010) (125,010) (125,010) (125,010) (125,010) (125,010) (125,010)
43,753 43,753 43,753 43,753 43,753 43,753 43,753 43,753 43,753 43,753 43,753
0.0301 35,464 33,986 32,577 31,231 29,944 28,711 27,529 26,393 25,265 24,137 23,008
$ (45,793) $ (47,270) $ (48,680) $ (50,025) $ (51,312) $ (52,545) $ (53,727) $ (54,863) $ (55,991) $ (57,120) $ (58,248)
Net Operating Income Requirement $ 330,580 $ 320,190 $ 310,283 $ 300,822 $ 291,774 $ 283,108 $ 274,796 $ 266,810 $ 258,877 $ 250,945 $ 243,013
Conversion Factor 0.63711
Total Revenue Requirement of Program $ 518,874 $ 502,566 $ 487,016 $ 472,166 $ 457,965 $ 444,363 $ 431,316 $ 418,781 $ 406,330 $ 393,880 $ 381,429
$taff_PR_146_Attachment C (15 year).xlsx Page 1
Avista Utilities
AVU-G-12-07
Staff Production Request No. 146
Estimated Revenue Requirement Calculation
Estimated rate impact of pipe replacement program at p
Year 12 Year 13 Year 14 Year 15
Estimated Capital Investment $ 3,438,108 $ 3,438,108 $ 3,438,108 $ 3,438,108
Accumulated Depreciation (944,964) (1,027,135) (1,109,306) (1,191,476)
Accumulated Deferred DFIT (416,259) (441,192) (466,113) (491,046)
Estimated Net Rate Base 2,076,885 1,969,781 1,862,690 1,755,586
Return on Rate Base 0.0846$ 175,705 $ 166,644 $ 157,584 $ 148,523
Depreciation Expense 2013 and after
Property Tax Expense
Total Expenses
Net Operating Income Before FIT
FIT Benefit of Depreciation and Property Tax
FIT Benefit of Interest Expense
Net Operating Income Impact
Net Operating Income Requirement
Conversion Factor
Total Revenue Requirement of Program
0.0239 82,171 82,171 82,171 82,171
0.01246 42,839 42,839 42,839 42,839
125,010 125,010 125,010 125,010
(125,010) (125,010) (125,010) (125,010)
43,753 43,753 43,753 43,753
0.0301 21,880 20,752 19,623 18,45
$ (59,376) $ (60,505) $ (61,633) $ (62,761)
$ 235,081 $ 227,148 $ 219,216 $ 211,284
0.63711
$ 368,980 $ 356,529 $ 344,079 $ 331,628
Staff-PR-146-Attachment C (15 year).xlsx Page 2
Tax Depreciation Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
150% Declining Bal
Estimated 1/2-Year Convention 0.03750 0.07219 0.06677 0.06177 0.05713 0.05285 0.04888 0.04522 0.04462 0.04461 0.04462
Capital 20-Year
Investment
Year Year Year Year Year4 Year Year Year Year Year Year 10 Year 11
1 3,438,108 128929.1 248,197 229,562 212,372 196,419 181,704 168,055 155,471 153,408 153,374 153,408
2 3,438,108 0 128,929 248,197 229,562 212,372 196,419 181,704 168,055 155,471 153,408 153,374
3 3,438,108 0 0 128,929 248,197 229,562 212,372 196,419 181,704 168,055 155,471 153,408
4 3,438,108 0 0 0 128,929 248,197 229,562 212,372 196,419 181,704 168,055 155,471
5 3,438,108 0 0 0 0 128,929 248,197 229,562 212,372 196,419 181,704 168,055
6 3,438,108 0 0 0 0 0 128,929 248,197 229,562 212,372 196,419 181,704
7 3,438,108 0 0 0 0 0 0 128,929 248,197 229,562 212,372 196,419
8 3,438,108 0 0 0 0 0 0 0 128,929 248,197 229,562 212,372
9 3,438,108 0 0 0 0 0 0 0 0 128,929 248,197 229,562
10 3,438,108 0 0 0 0 0 0 0 0 0 128,929 248,197
11 3,438,108 0 0 0 0 0 0 0 0 0 0 128,929
12 3,438,108 0 0 0 0 0 0 0 0 0 0 0
13 3,438,108 0 0 0 0 0 0 0 0 0 0 0
14 3,438,108 0 0 0 0 0 0 0 0 0 0 0
15 3,438,108 0 0 0 0 0 0 0 0 0 0 0
51,571,620
Tax Depreciation 128,929 377,126 606,689 819,060 1,015,480 1,197,184 1,365,238 1,520,710 1,674,118 1,827,492 1,980,900
Book Depreciation 41,085 123,256 205,427 287,598 369,769 451,939 534,110 616,281 698,452 780,622 862,793
Excess Tax Over Book Depreciation 87,844 253,870 401,262 531,463 645,711 745,244 831,128 904,429 975,666 1,046,870 1,118,107
Deferred FIT (30,745) (88,854) (140,442) (186,012) (225,999) (260,836) (290,895) (316,550) (341,483) (366,404) (391,337)
Book Depreciation Year Year Year Year Year Year Year Year Year Year 10 Year 11
Estimated 2013 and> Vintage 0.01195 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390
Capital Account 376 Rates
Investment
Year Year Year Year Year4 Year Year Year Year Year Year 10 Year 11
1 3,438,108 41,085 82,171 82,171 82,171 82,171 82,171 82,171 82,171 82,171 82,171 82,171
2 3,438,108 0 41,085 82,171 82,171 82,171 82,171 82,171 82,171 82,171 82,171 82,171
3 3,438,108 0 0 41,085 82,171 82,171 82,171 82,171 82,171 82,171 82,171 82,171
4 3,438,108 0 0 0 41,085 82,171 82,171 82,171 82,171 82,171 82,171 82,171
5 3,438,108 0 0 0 0 41,085 82,171 82,171 82,171 82,171 82,171 82,171
6 3,438,108 0 0 0 0 0 41,085 82,171 82,171 82,171 82,171 82,171
7 3,438,108 0 0 0 0 0 0 41,085 82,171 82,171 82,171 82,171
8 3,438,108 0 0 0 0 0 0 0 41,085 82,171 82,171 82,171
9 3,438,108 0 0 0 0 0 0 0 0 41,085 82,171 82,171
10 3,438,108 0 0 0 0 0 0 0 0 0 41,085 82,171
11 3,438,108 0 0 0 0 0 0 0 0 0 0 41,085
12 3,438,108 0 0 0 0 0 0 0 0 0 0 0
13 3,438,108 0 0 0 0 0 0 0 0 0 0 0
14 3,438,108 0 0 0 0 0 0 0 0 0 0 0
15 3,438,108 0 0 0 0 0 0 0 0 0 0 0
Book Depreciation 41,085 123,256 205,427 287,598 369,769 451,939 534,110 616,281 698,452 780,622 862,793
Staff-PR-146-Attachment C (15 year).xlsx Page 3
Year 12 Year 13 Year 14 Year 15
Estimated 0.04461 0.04462 0.04461 0.04462
Capital
Investment
Total Basis

2,594,465 843,643

2,441,057 997,051

2,287,683 1,150,425

2,134,274 1,303,834

1,980,900 1,457,208

1,827,492 1,610,616

1,674,118 1,763,990

1,520,710 1,917,398

1,365,238 2,072,870

1,197,184 2,240,924

1,015,40 2,422,628

819,060 2,619,048

606,689 2,831,419

377,126 3,060,982

128,929 3,309,179
Total Book Value

1,191,476 2,246,632

1,109,306 2,328,802

1,027,135 2,410,973

944,964 2,493,144

862,793 2,575,315

780,622 2,657,486

698,452 2,739,656

616,281 2,821,827

534,110 2,903,998

451,939 2,986,169

369,769 3,068,339

287,598 3,150,510

205,427 3,232,681

123,256 3,314,852

41,085 3,397,023
Year Year 12 Year 13 Year 14 Year 15

1 3,438,108 153,374 153,408 153,374 153,408

2 3,438,108 153,408 153,374 153,408 153,374

3 3,438,108 153,374 153,408 153,374 153,408

4 3,438,108 153,408 153,374 153,408 153,374

5 3,438,108 155,471 153,408 153,374 153,408

6 3,438,108 168,055 155,471 153,408 153,374

7 3,438,108 181,704 168,055 155,471 153,408

8 3,438,108 196,419 181,704 168,055 155,471

9 3,438,168 212,372 196,419 181,704 168,055
10 3,438,108 229,562 212,372 196,419 181,704
11 3,438,108 248,197 229,562 212,372 196,419
12 3,438,108 128,929 248,197 229,562 212,372
13 3,438,108 0 128,929 248,197 229,562
14 3,438,108 0 0 128,929 248,197
15 3,438,108 0 0 0 128,929
51,571,620

Tax Depreciation 2,134,274 2,287,683 2,441,057 2,594,465

Book Depreciatio 944,964 1,027,135 1,109,306 1,191,476

Excess Tax Over E 1,189,310 1,260,548 1,331,751 1,402,989

Deferred FIT (416,259) (441,192) (466,113) (491,046)
Year 12 Year 13 Year 14 Year 15

Estimated 0.02390 0.02390 0.02390 0.02390
Capital
lnvetment
Year Year 12 Year 13 Year 14 Year 15

1 3,438,108 82,171 82,171 82,171 82,171

2 3,438,108 82,171 82,171 82,171 82,171

3 3,438,108 82,171 82,171 82,171 82,171

4 3,438,108 82,171 82,171 82,171 82,171

5 3,438,108 82,171 82,171 82,171 82,171

6 3,438,108 82,171 82,171 82,171 82,171

7 3,438,108 82,171 82,171 82,171 82,171

8 3,438,108 82,171 82,171 82,171 82,171

9 3,438,108 82,171 82,171 82,171 82,171
10 3,438,108 82,171 82,171 82,171 82,171
11 3,438,108 82,171 82,171 82,171 82,171
12 3,438,108 41,085 82,171 82,171 82,171

3,438,108 0 41,085 82,171 82,171
14 3,438,108 0 0 41,085 82,171
15 3,438,108 0 0 0 41,085

Book Depreclatlo 944,964 1,027,135 1,109,306 1,191,476
Staff-PR-146-Attachment C (15 year).xlsx Page 4
Avista Utilities
AVU-G-12-07
Staff Production Request No. 146
Estimated Revenue Requirement Calculation
Estimated rate impact of pipe replacement program at proposed rate of return and all other costs constant 20 Years
Year Year Year Year Year Year Year Year Year
Estimated Capital Investment $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835
Accumulated Depreciation (34,235) (102,704) (171,174) (239,643) (308,113) (376,583) (445,052) (513,522) (581,991)
Accumulated Deferred DFIT (25,619) (74,039) (117,024) (154,996) (188,316) (217,344) (242,391) (263,768) (284,544)
Estimated Net Rate Base 2,804,981 2,688,092 2,576,637 2,470,195 2,368,406 2,270,909 2,177,392 2,087,545 1,998,300
Return on Rate Base 0.0846 $ 237,301 $ 227,413 $ 217,983 $ 208,979 $ 200,367 $ 192,119 $ 184,207 $ 176,606 $ 169,056
Depreciation Expense 2013 and after 0.0239 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470
Property Tax Expense 0.01246 35,696 35,696 35,696 35,696 35,696 35,696 35,696 35,696 35,69
Total Expenses 104,165 104,165 104,165 104,165 104,165 104,165 104,165 104,165 104,165
Net Operating Income Before FIT (104,165) (104,165) (104,165) (104,165) (104,165) (104,165) (104,165) (104,165) (104,165)
FIT Benefit of Depreciation and Property Tax 36,458 36,458 36,458 36,458 36,458 36,458 36,458 36,458 36,458
FIT Benefit of Interest Expense 0.0301 29,550 28,319 27,145 26,024 24,951 23,924 22,939 21,992 21,052
Net Operating Income Impact $ (38,157) $ (39,388) $ (40,563) $ (41,684) $ (42,756) $ (43,783) $ (44,769) $ (45,715) $ (46,655)
Net Operating Income Requirement $ 275,458 $ 266,801 $ 258,546 $ 250,663 $ 243,124 $ 235,902 $ 228,976 $ 222,322 $ 215,712
Conversion Factor 0.63711
Total Revenue Requirement of Program $ 432,356 $ 418,768 $ 405,811 $ 393,437 $ 381,604 $ 370,269 $ 359,398 $ 348,953 $ 338,578
Staff-PR-146-Attachment D (20 year).xlsx Page 1
Avista Utilities
AVU-G-12-07
Staff Production Request No. 146
Estimated Revenue Requirement Calculation
Estimated rate impact of pipe replacement program at
Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Estimated Capital Investment $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835 $ 2,864,835
Accumulated Depreciation (650,461) (718,930) (787,400) (855,869) (924,339) (992,809) (1,061,278) (1,129,748) (1,198,217) (1,266,687) (1,335,156)
Accumulated Deferred DFIT (305,310) (326,086) (346,851) (367,627) (388,393) (409,169) (429,934) (450,710) (471,476) (492,252) (513,017)
Estimated Net Rate Base 1,909,064 1,819,819 1,730,584 1,641,338 1,552,103 1,462,858 1,373,622 1,284,377 1,195,142 1,105,896 1,016,661
Return on Rate Base 0.0846$ 161,507 $ 153,957 $ 146,407 $ 138,857 $ 131,308 $ 123,758 $ 116,208 $ 108,658 $ 101,109 $ 93,559 $ 86,010
Depreciation Expense 2013 and after 0.0239 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470
Property Tax Expense 0.01246 35,696 35,696 35,696 35,696 35,696 35,696 35,696 35,696 35,696 35,696 35,696
Total Expenses 104,165 104465 104,165 104,165 104,165 104,165 104,165 104,165 104,165 104,165 104,165
Net Operating Income Before FIT (104,165) (104,165) (104,165) (104,165) (104,165) (104,165) (104,165) (104,165) (104,165) (104,165) (104,165)
FIT Benefit of Depreciation and Property Tax 36,458 36,458 36,458 36,458 36,458 36,458 36,458 36,458 36,458 36,458 36,458
FIT Benefit of Interest Expense 0.0301 20,112 19,172 18,232 17,292 16,351 15,411 14,471 13,531 12,591 11,651 10,711
Net Operating Income Impact $ (47,596) $(48,536) $(49,476) $(50,416) $(51,356) $(52,296) $(53,236) $(54,177) $(55,117) $(56,057) $ç56,997)
Net Operating Income Requirement $ 209,102 $ 202,492 $ 195,883 $ 189,273 $ 182,664 $ 176,054 $ 169,445 $ 162,835 $ 156,226 $ 149,616 $ 143,007
Conversion Factor 0.63711
Total Revenue Requirement of Program $ 328,204 $317,830 $307,456 $297,081 $286,707 $276,332 $265,959 $255,584 $245,210 $234,835 $224,461
Staff-PR-146-Attachment D (20 yea r).xlsx Page 2
Tax Depreciation Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12
150% Declining Bal
Estimated 1/2-Year Convention 0.03750 0.07219 0.06677 0.06177 0.05713 0.05285 0.04888 0.04522 0.04462 0.04461 0.04462 0.04461
Capital 20-Year
Investment
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12
2,864,835 107,431 206,812 191,285 176,961 163,668 151,407 140,033 129,548 127,829 127,800 127,829 127,800
2,864,835 0 107,431 206,812 191,285 176,961 163,668 151,407 140,033 129,548 127,829 127,800 127,829
2,864,835 0 0 107,431 206,812 191,285 176,961 163,668 151,407 140,033 129,548 127,829 127,800
2,864,835 0 0 0 107,431 206,812 191,285 176,961 163,668 151,407 140,033 129,548 127,829
2,864,835 0 0 0 0 107,431 206,812 191,285 176,961 163,668 151,407 140,033 129,548
2,864,835 0 0 0 0 0 107,431 206,812 191,285 176,961 163,668 151,407 140,033
2,864,835 0 0 0 0 0 0 107,431 206,812 191,285 176,961 163,668 151,407
2,864,835 0 0 0 0 0 0 0 107,431 206,812 191,285 176,961 163,668
2,864,835 0 0 0 0 0 0 0 0 107,431 2p6,812 191,285 176,961
2,864,835 0 0 0 0 0 0 0 0 0 107,431 206,812 191,285
2,864,835 0 0 0 0 0 0 0 0 0 0 107,431 206,812
2,864,835 0 0 0 0 0 0 0 0 0 0 0 107,431
2,864,835 0 0 0 0 0 0 0 0 0 0 0 0
2,864,835 0 0 0 0 0 0 0 0 0 0 0 0
2,864,835 0 0 0 0 0 0 0 0 0 0 0 0
2,864,835 0 0 0 0 0 0 0 0 0 0 0 0
2,864,835 0 0 0 0 0 0 0 0 0 0 0 0
2,864,835 0 0 0 0 0 0 0 0 0 0 0 0
2,864,835 0 0 0 0 0 0 0 0 0 0 0 0
2,864,835 0 0 0 0 0 0 0 0 0 0 0 0
57,296,700
Tax Depreciation 107,431 314,244 505,529 682,490 846,158 997,564 1,137,597 1,267,145 1,394,974 1,522,774 1,650,603 1,778,404
Book Depreciation 34,235 102,704 171,174 239,643 308,113 376,583 445,052 513,522 581,991 650,461 718,930 787,400
Excess Tax Over Book Depreciation 73,197 211,539 334,355 442,846 538,045 620,982 692,545 753,623 812,983 872,314 931,673 991,004
Deferred FIT (25,619) (74,039) (117,024) (154,996) (188,316) (217,344) (242,391) (263,78) (284,544) (305,310) (326,086) (346,851)
Staff-PR-146-Attachment D (20 year) .xlsx Page 3
Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Estimated 0.04462 0.04461 0.04462 0.04461 0.04462 0.04461 0.04462 0.04461
Capital
Investment
Year Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Total Basis
1 2,864,835 127,829 127,800 127,829 127,800 127,829 127,800 127,829 127,800 2,800,921 63,914
2 2,864,835 127,800 127,829 127,800 127,829 127,800 127,829 127,800 127,829 2,673,120 191,715
3 2,864,835 127,829 127,800 127,829 127,800 127,829 127,800 127,829 127,800 2,545,291 319,544
4 2,864,83 127,8d0 127,829 127,800 127,829 127,800 127,829 127,800 127,829 2,417,491 447,344
5 2,864,835 127,829 127,800 127,829 127,800 127,829 127,800 127,829 127,800 2,289,662 575,173
6 2,864,835 129,548 127,829 127,800 127,829 127,800 127,829 127,800 127,829 2,161,862 702,973
7 2,864,835 140,033 129,548 127,829 127,800 127,829 127,800 127,829 127,800 2,034,033 830,802
8 2,864,835 151,407 140,033 129,548 127,829 127,800 127,829 127,800 127,829 1,906,233 958,602
9 2,864,835 163,668 151,407 140,033 129,548 127,829 127,800 127,829 127,800 1,778,404 1,086,431
10 2,864,835 176,961 163,668 151,407 140,033 129,548 127,829 127,800 127,829 1,650,603 1,214,232
11 2,864,835 191,285 176,961 163,668 151,407 140,033 129,548 127,829 127,800 1,522,774 1,342,061
12 2,864,835 206,812 191,285 176,961 163,668 151,407 140,033 129,548 127,829 1,394,974 1,469,861
13 2,864,835 107,431 206,812 191,285 176,961 163,668 151,407 140,033 129,548 1,267,145 1,597,690
14 2,864,835 0 107,431 206,812 191,285 176,961 163,668 151,407 140,033 1,137,597 1,727,238
15 2,864,835 0 0 107,431 206,812 191,285 176,961 163,668 151,407 997,564 1,867,271
16 2,864,835 0 0 0 107,431 206,812 191,285 176,961 163,668 846,158 2,018,677
17 2,864,835 0 0 0 0 107,431 206,812 191,285 176,961 682,490 2,182,345
18 2,864,835 0 0 0 0 0 107,431 206,812 191,285 505,529 2,359,306
19 2,864,835 0 0 0 0 0 0 107,431 206,812 176,961 2,687,874
20 2,864,835 0 0 0 0 0 0 0 107,431 191,285 2,673,550
57,296,700
Tax Depreciation 1,906,233 2,034,033 2,161,862 2,289,662 2,417,491 2,545,291 2,673,120 2,800,921
Book Depreciatiot 855,869 924,339 992,809 1,061,278 1,129,748 1,198,217 1,266,687 1,335,156
Excess Tax Over B 1,050,363 1,109,694 1,169,053 1,228,384 1,287,743 1,347,074 1,406,433 1,465,764
Deferred FIT (367,627) (388,393) (409,169) (429,934) (450,710) (471,476) (492,252) (513,017)
Staff-PR-146-Attachment 0 (20 year).xlsx Page 4
Estimated
Capital
Investment
Year
1 2,864,835
2 2,864,835
3 2,864,835
4 2,864,835
5 2,864,835
6 2,864,835
7 2,864,835
8 2,864,835
9 2,864,835
10 2,864,835
11 2,864,835
12 2,864,835
13 2,864,835
14 2,864,835
15 2,864,835
16 2,864,835
17 2,864,835
18 2,864,835
19 2,864,835
20 2,864,835
Book Depreciation
Book Depreciation Year 1 Year 2 Year Year Year Year 6 Year 7 Year 8 Year Year 10 Year 11 Year 12
2013 and> Vintage 0.01195 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390
Account 376 Rates
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12
34,235 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470
0 34,235 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470
0 0 34,235 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470
0 0 0 34,235 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470
0 0 0 0 34,235 68,470 68,470 68,470 68,470 68,470 68,470 68,470
0 0 0 0 0 34,235 68,470 68,470 68,470 68,470 68,470 68,470
0 0 0 0 0 0 34,235 68,470 68,470 68,470 68,470 68,470
0 0 0 0 0 0 0 34,235 68,470 68,470 68,470 68,470
0 0 0 0 0 0 0 0 34,235 68,470 68,470 68,470
0 0 0 0 0 0 0 0 0 34,235 68,470 68,470
0 0 0 0 0 0 0 0 0 0 34,235 68,470
0 0 0 0 0 0 0 0 0 0 0 34,235
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
o 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
34,235 102,704 171,174 239,643 308,113 376,583 445,052 513,522 581,991 650,461 718,930 787,400
Staff-PR-146-Attachment D (20 year).xlsx Page 5
Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Estimated 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390
Capital
Investment
Year Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Total Book Value
1 2,864,835 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 1,335,156 1,529,679
2 2,864,835 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 1,266,687 1,598,148
3 2,864,835 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 1,198,217 1,666,618
4 2,864,835 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 1,129,748 1,735,087
5 2,864,835 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 1,061,278 1,803,557
6 2,864,835 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 992,809 1,872,026
7 2,864,835 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 924,339 1,940,496
8 2,864,835 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 855,869 2,008,966
9 2,864,835 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 787,400 2,077,435
10 2,864,835 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 718,930 2,145,905
11 2,864,835 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 650,461 2,214,374
12 2,864,835 68,470 68,470 68,470 68,470 68,470 68,470 68,470 68,470 581,991 2,282,844
13 2,864,835 34,235 68,470 68,470 68,470 68,470 68,470 68,470 68,470 513,522 2,351,313
14 2,864,835 0 34,235 68,470 68,470 68,470 68,470 68,470 68,470 445,052 2,419,783
15 2,864,835 0 0 34,235 68,470 68,470 68,470 68,470 68,470 376,583 2,488,252
16 2,864,835 0 0 0 34,235 68,470 68,470 68,470 68,470 308,113 2,556,722
17 2,864,835 0 0 0 0 34,235 68,470 68,470 68,470 239,643 2,625,192
18 2,864,835 0 0 0 0 0 34,235 68,470 68,470 171,174 2,693,661
19 2,864,835 0 0 0 0 0 0 34,235 68,470 102,704 2,76,131
20 2,864,835 0 0 0 0 0 0 0 34,235 34,235 2,830,600
Book Depreciatiot 855,869 924,339 992,809 1,061,278 1,129,748 1,198,217 1,266,687 1,335,156
Staff-PR-146-Attachment 0(20 year).xsx Page 6
Avista Utilities
AVU-G-12-07
Staff Production Request No. 146
Estimated Revenue Requirement Calculation
Estimated rate impact of pipe replacement program at proposed rate of return and all other costs constant 25 Years
Year Year Year Year Year Year Year Year Year Year 10 Year 11 Year 12 Year 13
Estimated Capital Investment $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720
Accumulated Depreciation (30,457) (91,372) (152,286) (213,200) (274,115) (335,029) (395,944) (456,858) (517,772) (578,687) (639,601) (700,516) (761,430)
Accumulated Deferred DFIT (22,792) (65,869) (104,111) (137,893) (167,536) (193,361) (215,645) (234,663) (253,147) (271,621) (290,104) (308,579) (327,062)
Estimated Net Rate Base 2,49$,471 2,391,479 2,292,323 2,197,626 2,107,069 2,020,330 1,937,132 1,857,199 1,777,801 1,698,412 1,619,014 1,539,626 1,460,228
Return on Rate Base 0.0846 $ 211,117 $ 202,319 $ 193,930 $ 185,919 $ 178,258 $ 170,920 $ 163,881 $ 157,119 $ 150,402 $ 143,686 $ 136,969 $ 130,252 $ 123,535
Depreciation Expense 2013 and afte 0.0239 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914
Property Tax Expense 0.01246 31,757 31,757 31,757 31,757 31,757 31,757 31,757 31,757 31,757 31,757 31,757 31,757 31,757
Total Expenses 92,671 92,671 92,671 92,671 92,671 92,671 92,671 92,671 92,671 92,671 92,671 92,671 92,671
Net Operating Income Before FIT (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671)
FIT Benefit of Depreciation and Property Tax 32,435 32,435 32,435 32,435 32,435 32,435 32,435 32,435 32,435 32,435 32,435 32,435 32,435
FIT Benefit of Interest Expense 0.0301 26,290 25,194 24,150 23,152 22,198 21,284 20,408 19,566 18,729 17,893 17,056 16,220 15,384
Net Operating Income Impact $ (33,947) $ (35,042) $ (36,087) $ (37,084) $ (38,038) $ (38,952) $ (39,829) $ (40,671) $ (41,507) $ (42,344) $ (43,180) $ (44,016) $ (44,853)
Net Operating Income Requirement $ 245,063 $ 237,361 $ 230,017 $ 223,004 $ 216,297 $ 209,872 $ 203,710 $ 197,790 $ 191,909 $ 186,029 $ 180,149 $ 174,269 $ 168,388
Conversion Factor 0.63711
Total Revenue Requirement of Program $ 384,649 $ 372,559 $ 361,032 $ 350,024 $ 339,496 $ 329,413 $ 319,741 $ 310,449 $ 301,218 $ 291,989 $ 282,759 $ 273,530 $ 264,300
Staff-PR-146-Attachment E (25 year).xlsx Page 1
Avista Utilities
AVU-G-12-07
Staff Production Request No. 146
Estimated Revenue Requirement Calculation
Estimated rate impact of pipe replacement progra
Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year23 Year 24 Year 25
Estimated Capital Investment $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720 $ 2,548,720
Accumulated Depreciation (822,345) (883,259) (944,173) (1,005,088) (1,066,002) (1,126,917) (1,187,831) (1,248,745) (1,309,660) (1,370,574) (1,431,489) (1,492,403)
Accumulated Deferred DFIT (345,536) (364,020) (382,494) (400,977) (419,452) (437,935) (456,409) (454,991) (433,671) (412,351) (391,031) (369,711)
Estimated Net Rate Base 1,380,839 1,301,441 1,222,053 1,142,655 1,063,266 983,868 904,480 844,984 805,389 765,795 726,200 686,606
Return on Rate Base 0.0846 $ 116,819 $ 110,102 $ 103,386 $ 96,669 $ 89,952 $ 83,235 $ 76,519 $ 71,486 $ 68,136 $ 64,786 $ 61,437 $ 58,087
Depreciation Expense 2013 and afte 0.0239 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914
Property Tax Expense 0.01246 31,757 31,757 31,757 31,757 31,757 31,757 31,757 31,757 31,757 31,757 31,757 31,757
Total Expenses 92,671 92,671 92,671 92,671 92,671 92,671 92,671 92,671 92,671 92,671 92,671 92,671
Net Operating Income Before FIT (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671) (92,671)
FIT Benefit of Depreciation and Property Tax 32,435 32,435 32,435 32,435 32,435 32,435 32,435 32,435 32,435 32,435 32,435 32,435
FIT Benefit of Interest Expense 0.0301 14,547 13,711 12,874 12,038 11,202 10,365 9,529 8,902 8,485 8,068 7,651 7,233
Net Operating Income Impact $ (45,689) $ (46,526) $ (47,362) $ (48,199) $ (49,035) $ (49,871) $ (50,708) $ (51,335) $ (51,752) $ (52,169) $ (52,586) $ (53,003)
Net Operating Income Requirement $ 162,508 $ 156,628 $ 150,748 $ 144,867 $ 138,987 $ 133,107 $ 127,227 $ 122,820 $ 119,888 $ 116,955 $ 114,022 $ 111,090
Conversion Factor 0.63711
Total Revenue Requirement of Program $ 255,071 $ 245,841 $ 236,612 $ 227,382 $ 218,153 $ 208,923 $ 199,694 $ 192,777 $ 188,174 $ 183,571 $ 178,968 $ 174,365
Staff_PR_146Attachment E (25 year).xlsx Page 2
Tax Depreciation Year Year Year Year Year Year Year Year Year Year 10 Year 11 Year 12 Year 19 Year 14
150% Declining Sal
1/2-Year Convention 0.03750 0.07219 0.06677 0.06177 0.05713 0.05285 0.04888 004522 0.04462 0.04461 0.04462 0.04461 0.04462 0.04461
Estimated Capital 20-Year
Year
Investment
Year Year Year Year Year Year Year Year Year Year 10 Year 11 Year 12 Year 1i Year 14
1 2,548,720 95,577 183,992 170,178 157,434 145,608 134,700 124,581 115,253 113,724 113,698 113,724 113,698 113,724 113,698
2 2,548,720 0 95,577 183,992 170,178 157,434 145,608 134,700 124,581 115,253 113,724 113,698 113,724 113,698 113,724
3 2,548,720 0 0 95,577 183,992 170,178 157,434 145,608 134,700 124,581 115,253 113,724 113,698 113,724 113,698
4 2,548,720 0 0 0 95,577 183,992 170,178 157,434 145,608 134,700 124,581 115,253 113,724 113,698 113,724
5 2,548,720 0 0 0 0 95,577 183,992 170,178 157,434 145,608 134,700 124,581 115,253 113,724 113,698
6 2,548,720 0 0 0 0 0 95,577 183,992 170,178 157,434 145,608 134,700 124,581 115,253 113,724
7 2,548,720 0 0 0 0 0 0 95,577 183,992 170,178 157,434 145,608 134,700 124,581 115,253
8 2,548,720 0 0 0 0 0 0 0 95,577 183,992 170,178 157,434 145,608 134,700 124,581
9 2,548,720 0 0 0 0 0 0 0 0 95,577 183,992 170,178 157,434 145,608 134,700
10 2,548,720 0 0 0 0 0 0 0 0 0 95,577 183,992 170,178 157,434 145,608
11 2,548,720 0 0 0 0 0 0 0 0 0 0 95,577 183,992 170,178 157,434
12 2,548,720 0 0 0 0 0 0 0 0 0 0 0 95,577 183,992 170,178
13 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 95,577 183,992
14 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 95,577
15 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
16 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
17 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
18 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
19 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
20 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
21 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
22 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
23 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
24 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
25 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
63,718,000
Tax Depreciation 95,577 279,569 449,747 607,182 752,790 887,490 1,012,071 1,127,324 1,241,048 1,354,747 1,468,471 1,582,169 1,695,893 1,809,591
Book Depreciation 30,457 91,372 152,286 213,200 274,115 335,029 395,944 456,858 517,772 578,687 639,601 700,516 761,430 822,345
Excess Tax Over Book Depreciation 65,120 188,197 297,461 393,981 478,675 552,461 616,128 670,466 723,276 776,060 828,869 881,653 934,463 987,247
Deferred FIT (22,792) (65,869) (104,111) (137,893) (167,536) (193,361) (215,645) (234,663) (253,147) (271,621) (290,104) (308,579) (327,062) (345,536)
Staff-PR-146-Attachment E (25 year).xlsx Page 3
Year
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year22 Year23 Year24 Year25
0.04462 0.04461 0.04462 0.04461 0.04462 0.04461 0.02231 0.00000 0.00000 0.00000 0.00000
Estimated Capital
Investment
Year 15 Year 16 Year 17 Year 18 Year 19 Year20 Year 21 Year22 Year23 Year24 Year25 Total Basis
2,548,720 113,724 113,698 113,724 113,698 113,724 113,698 56,862 - - - - 2,548,720 -
2,548,720 113,698 113,724 113,698 113,724 113,698 113,724 113,698 56,862 - - - 2,548,720 -
2,548,720 113,724 113,698 113,724 113,698 113,724 113,698 113,724 113,698 56,862 - - 2,548,720 -
2,548,720 113,698 113,724 113,698 113,724 113,698 113,724 113,698 113,724 113,698 56,862 - 2,548,720 -
2,548,720 113,724 113,698 113,724 113,698 113,724 113,698 113,724 113,698 113,724 113,698 56,862 2,548,720 -
2,548,720 113,698 113,724 113,698 113,724 113,698 113,724 113,698 113,724 113,698 113,724 113,698 2,491,858 56,862
2,548,720 113,724 113,698 113,724 113,698 113,724 113,698 113,724 113,698 113,724 113,698 113,724 2,378,10 170,560
2,548,720 115,253 113,724 113,698 113,724 113,698 113,724 113,698 113,724 113,698 113,724 113,698 2,264,436 284,284
2,548,720 124,581 115,253 113,724 113,698 113,724 113,698 113,724 113,698 113,724 113,698 113,724 2,150,737 397,983
2,548,720 134,700 124,581 115,253 113,724 113,698 113,724 113,698 113,724 113,698 113,724 113,698 2,037,013 511,707
2,548,720 145,608 134,700 124,581 115,253 113,724 113,698 113,724 113,698 113,724 113,698 113,724 1,923,315 625,405
2,548,720 157,434 145,608 134,700 124,581 115,253 113,724 113,698 113,724 113,698 113,724 113,698 1,809,591 739,129
2,548,720 170,178 157,434 145,608 134,700 124,581 115,253 113,724 113,698 113,724 113,698 113,724 1,695,893 852,827
2,548,720 183,992 170,178 157,434 145,608 134,700 124,581 115,253 113,724 113,698 113,724 113,698 1,582,169 966,551
2,548,720 95,577 183,992 170,178 157,434 145,608 134,700 124,581 115,253 113,724 113,698 113,724 1,468,471 1,080,249
2,548,720 0 95,577 183,992 170,178 157,434 145,608 134,700 124,581 115,253 113,724 113,698 1,354,147 1,193,973
2,548,720 0 0 95,577 183,992 170,178 157,434 145,608 134,700 124,581 115,253 113,724 1,241,048 1,307,672
2,548,720 0 0 0 95,577 183,992 170,178 157,434 145,608 134,700 124,581 115,253 1,127,324 1,421,396
2,548,720 0 0 0 0 95,577 183,992 170,178 157,434 145,608 134,700 124,581 1,012,071 1,536,649
2,548,720 0 0 0 0 0 95,577 183,992 170,178 157,434 145,608 134,700 887,490 1,661,230
2,548,720 0 0 0 0 0 0 95,577 183,992 170,178 157,434 145,608 752,790 1,795,930
2,548,720 0 0 0 0 0 0 0 95,577 183,992 170,178 157,434 607,182 1,941,538
2,548,720 0 0 0 0 0 0 0 0 95,577 183,992 170,178 449,747 2,098,973
2,548,720 0 0 0 0 0 0 0 0 0 95,577 183,992 279,569 2,269,151
2,548,720 0 0 0 0 0 0 0 0 0 0 95,577 95,577 2,453,143
63,718,000
Tax Depreciation 1,923,315 2,037,013 2,150,737 2,264,436 2,378,160 2,491,858 2,548,720 2,548,720 2,548,720 2,548,720 2,548,720
Book Depreciation 883,259 944,173 1,005,088 1,066,002 1,126,917 1,187,831 1,248,745 1,309,660 1,370,574 1,431,489 1,492,403
Excess Tax Over Bc 1,040,056 1,092,840 1,145,650 1,198,434 1,251,243 1,304,027 1,299,975 1,239,060 1,178,146 1,117,231 1,056,317
Deferred FIT (364,020) (382,494) (400,977) (419,452) (437,935) (456,409) (454,991) (433,671) (412,31) (391,031) (369,711)
Staff-PR-146-Attachment E (25 year).xlsx Page 4
Book Depreciation Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14
2013 and >Vintage 0.01195 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390
Estimated Capital Account 376 Rates
Investment
Year Year Year Year Year Year Year Year Year Year Year 10 Year ll Year 12 Year 13 Year 14
1 2,548,720 30457.2 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 0,914 60,914
2 2,548,720 0 30,457 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914
3 2,548,720 0 0 30,457 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914
4 2,548,720 0 0 0 30,457 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914
5 2,548,720 0 0 0 0 30,457 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914
6 2,548,720 0 0 0 0 0 30,457 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914
7 2,548,720 0 0 0 0 0 0 30,457 60,914 60,914 60,914 60,914 60,914 60,914 60,914
8 2,548,720 0 0 0 0 0 0 0 30,457 60,914 60,914 60,914 60,914 60,914 60,914
9 2,548,720 0 0 0 0 0 0 0 0 30,457 60,914 60,914 60,914 60,914 60,914
10 2,548,720 0 0 0 0 0 0 0 0 0 30,457 60,914 60,914 60,914 60,914
11 2,548,720 0 0 0 0 0 0 0 0 0 0 30,457 60,914 60,914 60,914
12 2,548,720 0 0 0 0 0 0 0 0 0 0 0 30,457 60,914 60,914
13 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 30,457 60,914
14 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 30,457
15 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
16 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
17 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
18 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
19 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
20 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
21 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
22 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
23 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
24 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
25 2,548,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Book Depreciation 30,457 91,372 152,286 213,200 274,115 335,029 395,944 456,858 517,772 578,687 639,601 700,516 761,430 822,345
Staff-PR-146-Attachment E (25 year).xlsx Page
Year 15 Year 16 Year 17 Year 18 Year 19 Year20 Year 21 Year22 Year23 Year24 Year25
0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390 0.02390
Estimated Capital
Investment
Year Year 15 Year 16 Year 17 Year 18 Year 19 Year20 Year 21 Year22 Year23 Year24 Year 25 Total Book Value
1 2,548,720 60,914 60,914 60,14 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 1,492,403 1,056,317
2 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 1,431,489 1,117,231
3 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 1,370,574 1,178,146
4 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 1,399,660 1,239,060
5 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 1,248,745 1,299,975
6 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 1,187,831 1,360,889
7 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 1,126,917 1,421,803
8 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 1,066,002 1,482,718
9 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 1,005,088 1,543,632
10 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 944,173 1,604,547
11 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 883,259 1,665,461
12 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 822,345 1,726,375
13 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 761,430 1,787,290
14 2,548,720 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 700,516 1,848,204
15 2,548,720 30,457 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 639,601 11909,119
16 2,548,720 0 30,457 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 578,687 1,970,033
17 2,548,720 0 0 30,457 60,914 60,914 60,914 60,914 60,914 60,914 60,914 60,914 517,772 2,030,948
18 2,548,720 0 0 0 30,457 60,914 60,914 60,914 60,914 60,914 60,914 60,914 456,858 2,091,862
19 2,548,720 0 0 0 0 30,457 60,914 60,914 60,914 60,914 60,914 60,914 395,944 2,152,776
20 2,548,720 0 0 0 0 0 30,457 60,914 60,914 60,914 60,914 60,914 335,029 2,213,691
21 2,548,720 0 0 0 0 0 0 30,457 60,914 60,914 60,914 60,914 274,115 2,274,605
22 2,548,720 0 0 0 0 0 0 0 30,457 60,914 60,914 60,914 213,200 2,335,520
23 2,548,720 0 0 0 0 0 0 0 0 30,457 60,914 60,914 152,286 2,396,434
24 2,548,720 0 0 0 0 0 0 0 0 0 30,457 60,914 91,372 2,457,348
25 2,548,720 0 0 0 0 0 0 0 0 0 0 30,457 30,457 2,518,263
Book Depreciation 883,259 944,173 1,005,088 1,066,002 1,126,917 1,187,831 1,248,745 1,309,660 1,370,574 1,431,489 1,492,403
Staff-PR-146-Attachment E (25 year) xlsx Page 6