20170814AVU to Staff 44.doc

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 08/07/17
CASE NO: AVU-E-17-01 / AVU-G-17-01 WITNESS: Scott Kinney
REQUESTER: IPUC - Eldred RESPONDER: Brian Vandenburg
TYPE: Production Request DEPARTMENT: Project Delivery
REQUEST NO.: Staff-044 TELEPHONE: [phone]

REQUEST:

Please provide an accounting of and explain the difference between the $9,000,000 transfer-to-plant value shown in the Little Falls Plant Upgrade business case (Exhibit No. 4, pg 36) for 2018 compared to the $16,444,000 transfer-to-plant value in the 2018 Capital Additions Detail Table (Exhibit No. 11, pg. 3).

RESPONSE:

The referenced $16,444,000 transfer to plant value was developed during the Company’s annual budget process in fourth quarter of 2016.

Subsequent to the development of the original budget for 2018 transfers to plant, the expected completion of the Little Falls Headgate overhaul subproject was moved from 2018 to 2019. The investment associated with this subproject is approximately $2 million. Additionally, the Little Falls Unit 4 upgrade subproject had been scheduled to be completed in December 2018, but the planned completion was moved to June 2019. The investment associated with this project is approximately $5 million.

The shift in the expected transfers to plant associated with these updates to subproject schedules were reflected in the Little Falls Plant Upgrade business case (Exhibit No. 11, pg. 3), which was prepared in April 2017. The table below reconciles these values.

Original expected 2018 transfers to plant: $16 million Less: Little Falls Headgate subproject (moved to 2019): (2 million) Less: Little Falls Unit 4 upgrade (moved to 2019): (5 million) Remaining expected 2018 transfers to plant: $9 million