20180126Avista to Staff_DR_021.docx

AVISTA CORP.
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:OregonDATE PREPARED:09/28/2017
CASE NO.:UM 1897WITNESS:Mark Thies
REQUESTER:PUC StaffRESPONDER:Anna ScarlettTYPE:Data RequestDEPT:Shared Services
REQUEST NO.:Staff– 021(AVA)TELEPHONE:[phone]EMAIL:[e-mail]:Has Avista determined that Avista’s and Hydro One’s systems are working with sufficiently similar high voltage transmission line and substation equipment to create additional purchasing economies of scale? If so, please explain and include indicative pricing from suppliers like ABB Group showing the difference in pricing by quantity of inputs to transmission and substation equipment. Please describe the purchasing arrangements Avista participates in with other utilities or suppliers.
RESPONSE:
Avista and Hydro One have just started to engage in high-level discussions to begin to identify possible future opportunities for savings related to economies of scale. Initial discussions have focused on sharing general supply chain information, metrics and practices; a more detailed analysis will occur post-closing.
Avista has no formal purchasing arrangements or partnerships with other utilities. Through the Western Region Mutual Assistance Group (WRMAG), one of seven mutual assistance groups in the United States, Avista sometimes provides assistance in emergency situations to other utilities, typically in the form of labor.