20150916AVU to Staff 126.docx

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATIONJURISDICTION:IDAHODATE PREPARED:09/16/2015CASE NO.:AVU-E-15-05/AVU-G-15-01WITNESS:Karen SchuhREQUESTER:IPUCRESPONDER:David MachadoTYPE:Production RequestDEPARTMENT:State & Federal RegulationREQUEST NO.:Staff–126TELEPHONE:[phone]REQUEST:
Exhibit No. 11, Schedule 1 of Karen Schuh’s testimony is a graphical summary of capital expenditures from 2005 through 2019. Please explain each cost category and provide the data used to develop this graph. Please include the FERC accounts when providing this information.RESPONSE:The cost categories included in Exhibit No. 11, Schedule 1 of Karen Schuh’s testimony, along with the FERC plant account numbers (in parentheses) and explanations of each category, are as follows:Electric T&D (350-359 – Transmission; 360-373 – Distribution):represents investments in transmission and distribution projects for electric service.Other (389-398): primarily related to the costs of investment in facilities, transportation, and tools and equipment; also includes investments related to Jackson Prairie natural gas storage.ET (303 – Software; 391, 397 – Hardware): enterprise technology related investments.Growth (360-373 – Electric service; 374-387 – Natural Gas service): represents investment related to the connection of new customers for both electric and natural gas service.Generation (310-316 – Steam Generation; 330-336 – Hydraulic Generation; 340-346 – Other Generation): represents investment for projects related to the generation of electricity.Gas (374-387): investment for projects related to natural gas distribution projects.Environmental (Primarily 303, 330-336, 350, 360, 374, 389-390, and 392, but may include others): primarily related to the costs associated with the implementation of the agreed-upon protection, mitigation, and enhancement programs (PM&Es) associated with our Clark Fork and Spokane River FERC licenses. Also includes costs associated with other environmental agreements.230 kV Project (350-359 – Transmission; 360-373 – Distribution): largetransmission and distribution projects for electric service.The data used to develop this graph was originally embedded within the native format electronic workpaper for Exhibit No. 11, Schedule 1 in our pre-filed testimony; we have included the data as Staff_PR_126 Attachment A for convenience of access.The amounts presented within this chart represent capital expenditures, rather than transfers to plant. Therefore, in general, the expenditures shown in this chart would first be debited to FERC account 107, “Construction work in progress” (CWIP). Subsequent transfers to plant (which may occur in the same year the expenditure occurred, or may occur in a subsequent year) would result in a credit to FERC account 107 and a debit to FERC Account 101, “Plant in service” (effectively transferring the costs from CWIP to plant in service).