20190826Avista to Staff 1-7.pdf

JURISDICTION
CASE NO:
REQUE,STER:
TYPE:
REQUEST NO.:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
IDAHO
AVU-G-19-04 (FCA)
IPUC
Production Request
Staff-001
REC EIVED
DATE PREPARED: 0812612019WITNESS: N/A ?$19 fiUG ?5 Pll 2: l+3
RESPONDER: TaraKnox,..\.,!.. r!\,,^DEPARTMENT: Regulatoq,lAf,taSCiffiiHSfoUTELEPHoNE: (s0e) 4es-43if "
EMAIL: [e-mail]
REQUEST:
Please provide the number of new natural gas customers by month for January 2019 through
May 2019.
RESPONSE:
2019 new customers by month are defined as billed service agreements of new natural gas service
hookups afterthe 2016 test yearthat was the basis forrates implemented January 1,2019. The
following table identifies new hookups by the FCA rate groups.
Month Residential Non-Residential
January 2019 4,384 30
February 201 9 4,471 30
March 2019 4,604 JJ
April 2019 4,790 )Z
May 2019 4,985 34
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G- l9-04 (FCA)
IPUC
Production Request
Staff-002
DATE PREPARED: 08126120t9
WITNESS: N/A
RESPONDER: Tara Knox
DEPARTMENT: Regulatory Affairs
TELEPHONE: [phone]
EMAIL: [e-mail]
REQUEST:
On page 7, lines 12-15 of the Application, Avista lists the effects of three drivers (weather, energy
efficiency and other) on use-per-customer and FCA Revenue for the residential and non-residential
group. Please provide supporting documentation for these calculations including Excel workbooks
with formulas intact and enabled.
RESPONSE:
Please see Staff PR_002 Attachment A containing the calculation of the 2018 deferred revenue
driver estimates.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G- l9-04 (FCA)
IPUC
Production Request
Staff-003
DATE PREPARED: 0812612019WITNESS: N/A
RESPONDER: Tara Knox
DEPARTMENT: Regulatory Affairs
TELEPHONE: [phone]EMAIL: [e-mail]
REQUEST:
On page 7 of its Application, the Company estimates that the Company's DSM programs reduced
residential usage by approximately 400,000 therms in 2018 and non-residential usage by
approximately 100,000 therms in 2018.
a.) Please reconcile these results to the Company's 2016,2017, and 2018 DSM
reports and any other reports that apply. Please provide supporting
documentation for these calculations including Excel workbooks with formulas
intact and enabled.
b.) Please provide the Company's estimate of the total weather-normalized change in
consumption in 2018 for the same customer groups.
RESPONSE:
a.) Staff PR_002 Attachment A (previously provided) includes a reconciliation of the annual
DSM reportslto the 2018 estimated accumulated savings since the 2016 test year upon
which 2018 rates were established.
b.) The table below shows the change in total weather-normalized consumption from the2016
test year to 2018 total weather normalized consumption.
2016 Test Year
A\rt]-G-I7-01
2018
Normalized Change
Residential
N orrnalized Arurual Usage
Cwtomer Billings
Average Monthly Use/Cust
Non-Residential
Nornralized Anrunl Usage
Cwtomer Billings
Average Monthly Use/Cust
3,800,694
44,364
I
7,872,834
851
36
59,156,634
943,245
63
23,271,119
17,057
1,364
62,957J28
987,609
64
25,083,953
17,908
1,401
I 2016 DSM savings values reconcile to table ES-2 in the 2016 DSM report, 2017 DSM savings values reconcile to
table ES-2 in the 20 l7 DSM report, and 2018 DSM savings values reconcile to Table I in the draft 2018 DSM report.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G- 19-04 (FCA)
IPUC
Production Request
Staff-004
DATE PREPARED: 0812612019WITNESS: N/A
RESPONDER: Marcus Garbarino
DEPARTMENT: Internal Audit
TELEPHONE: (509) 49s-2s67
EMAIL : marcus. garbarino@avistacorp. com
REQUEST:
Please provide all internal audit reports and SOX reports detailing the FCA revenue determination
since 2017. This includes any safeguards or internal controls used to ensure that the revenue report
is accurate.
RESPONSE:
The SOX Internal Control below includes reviewing the monthly decoupling journal (includes
FCA) and support for accuracy:
Control lD Control Name Control Description
C.RATES.07 Decoupling Deferral
Review
M onthly, the Regulatory Affa irs Representative
responsible for the decoupling mechanism and the
Resource Accou nting Ma nager review decoupl ing
calculations and the journal entry to record decoupling,
evaluating the accuracy and completeness of calculations
and tracing revenue inputs to source data. ln addition,
accumulated decoupling deferral balances are compared
to independent schedules of decoupling limits to ensure
that recorded deferred revenue does not exceed the
amount expected to be collected within 24 months. Any
amounts in excess of these limits are not recognized for
GAAP financial reporting purposes until expected to be
collected within 24 months.
This control was tested by Internal Audit as of December 37,2078 with no exceptions noted.
Access to testing workpaper will be made available onsite. There have been no internal audit
reports issued since 2017 related specifically to the revenue process.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G-19-04 (FCA)
IPUC
Production Request
Staff-005
DATE PREPARED: 08126/2019WITNESS: N/A
RESPONDER: Tara Knox
DEPARTMENT: Regulatory Affairs
TELEPHONE: [phone]
EMAIL: tara.knox(Eavistacorp.com
REQUEST:
Please provide an explanation of the process used for the creation of revenue reports provided in
the workpapers.
RESPONSE:
The monthly revenue information included in the electronic workpapers is a summary of financial
system revenue queries. As an example, please see Staff AR_005 Attachment A containing the
system reports that were used to populate the "December Base Rate Revenue" tab in the Company
workpapers file. The financial system revenue queries report information from the RED "Revenue
Entry Device" system. RED serves as the interface between the general ledger and the customer
care and billing system (as well as any other revenue data source).
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
IDAHO
AVU-G-19-04 (FCA)
IPT]C
DATE PREPARED: 0812612019
WITNESS: N/A
RESPONDER: Tara Knox
Marcus Garbarino
DEPARTMENT: Regulatory Affairs
Internal Audit
TELEPHONE: (509) 49s-432s
(s09) 49s-2s67
EMAIL: [e-mail]
marcus. garb ar rno @avi stacorp. co m
TYPE Production Request
REQUEST NO.: Staff-006
REQUEST:
Please describe the process, safeguards, and internal controls used for the validation of new
customers for the FCA calculations.
RESPONSE:
This response is specific to the process for establishing new customer hookups as reflected in the
FCA deferral for new versus existing customers.
The process of adding customers to the Company's service territory is a standard part of the
operation of the business. The Company maintains an interactive business process manual called
the Flip Chart Knowledge Base on the internal intranet that customer service representatives use
when interacting with customers.
Documented SOX Internal Controls that address risks related to new customer hookup include the
controls listed below. The control ID is internally developed labeling. C stands for "control" and
UCB stands for "utility customer billing". QA refers to quality assurance, and CSRs refers to
customer service representatives.
Control lD Control Name Control Description
c.ucB.01 Changes to Customer
lnformation
Monthly, QA procedures are performed to ensure that
CSRs are following handbook protocols when making
changes to customer accounts. The results of these QA
procedures are provided to responsible managers on a
monthly basis so that appropriate action can be taken.
C.UCB.O2 New Customer Verification Many times per day, customer applications are received,
and for each customer application (residential and
commercial) a red flag is automatically assigned if the
customer or service address falls within the Company's
set criteria for potential fraud. These flags can also be
manually assigned. CSRs conduct verification procedures
for all customer applications.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G-1e-04 (FCA)
IPUC
Production Request
Staff-007
DATE PREPARED: 0812612019WITNESS: N/A
RESPONDER: Marcus Garbarino
DEPARTMENT: Internal Audit
TELEPHONE: (s09) 495-2s67
EMAIL: marcus. [e-mail]
REQUEST:
Please provide all internal audit reports and SOX reports detailing the new customer process since
2017.
RESPONSE:
There have been no internal audit reports issued or SOX reports related specifically to the new
customer process since 2017.