20200804Staff to Avista 1-7.pdf

AVISTA CORPORATION
RXSPONSE TO REQUEST FOR INFORMATION
JURISDICTION
CASE NO.:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AW-G-20-05
IPUC
Production Request
Staff-001
DATE PREPARED: 0712'7/2020
RESPONDER: Marcus Garbarino
DEPARTMENT: Intemal Audit
TELEPHONE: (509)-49s-2s67
EMAIL: marcus. garbarino@avistacorp. com
REQUEST:
Please p,rovide all intemal audit reports and SOX reports detailing the FCA revenue determination
during the 2019 deferral period, including any safeguards or intemal 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 lo Control Name Control Description
C.RATES.07 Decoupling Deferral
Review
Monthly, the Regulatory Affairs Representative
responsible for the decoupling mechanism and the
Resource Accounting Manager review decoupling
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 flnancial reporting purposes until expected to be
collected within 24 months.
This control was tested by Intemal Audit as ofDecember 31,2019 with no exceptions noted. There
have been no internal audit reports issued during the 2019 defenal period related specifically to the
rev€nue process.
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RECEIVED
2020 August 4, AM 10:50
IDAHO PUBLIC
UTILITIES COMMISSION
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO.:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AvU-G-20-05
IPUC
Production Request
Staff-002
DATE PREPARED : 07 124 I 2020
RESPONDER: Joel Anderson
DEPARTMENT: State & Federal Regulation
TELEPHONE: (s09)-49s-2811
EMAIL: [e-mail]
RSQUEST;
Please explain the process used to create the revenue reports provided in the workpapers for the
2019 deferral period.
RESPONSE:
The monthly revenue information included in the electronic workpapers is a summary of financial
system revenue queries. As an example, please see StaflAR_002 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 R-ED "Revenue
Entry Device" system. RED serves as the interface between the general ledger and the customer
care and biiling systern (as well as any other revenue data source).
Page 1 of I
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASENO.:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G-20-05
IPUC
Production Request
Staff-003
DATE PREPARED : 07 I 27 1202O
RESPONDER: Joel Anderson
DEPARTMENT: State & Federal Regulation
TELEPHoNE: [phone]EMAIL: [e-mail]
REQUEST:
Please describe t}re process, safeguards, and the internal controls that have been implemented to
validate 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 ofthe business. The Company maintains an interactive business process manual called
the Flip Chart Knowledge Base on the intemal intranet that customer service representatives use
when interacting with customers.
Documented SOX Intemal Controls that address risks related to new customer hookup include the
controls listed below. The control ID is intemally 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.
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AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO.:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G-20-05
IPUC
Production Request
Staff-004
DATEPREPARED: 0712712020RESPONDER: Marcus Garbarino
DEPARTMENT: Intemal AuditTELEPHONE: (509)-495-2567
EMAIL: [e-mail]
REQUEST:
Please provide all intemal audit reports and SOX reports regarding the new customer process for
the 2019 defenal period.
RESPONSE:
There have been no intemal audit reports issued or SOX reports related specifically to the new
customer process for the 2019 deferral period.
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Month Residential Non-Residential
January 2020 6,438 45
February 2020 6 515 47
March 2020 6,790 49
April 2020 6,956 50
May2020 7,137 51
June 2020 7,3t7 54
AVISTA CORPORATION
R"ESPONSE TO REQUEST FOR INF'ORMATION
JURISDICTION:
CASE NO.:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AW-G-20-05
IPUC
Production Request
Staff-005
DATE PREPARED: 07 124/2020
RESPONDER: Joel Anderson
DEPARTMENT: State & Federal Regulation
TELEPHONE: (509)-49s-281iEMAIL: joel.anderson@avistacorp.@m
REQUEST:
Please provide the number of new natural gas customers by class per month for larnary 2020
through June 2020.
RESPONSE:
2020 new customers by month are defined as billed service agreernents of new natural gas service
hookups after the 2016 test year that was the basis for rates implemented January 1, 2020. T\e
following table identifies new hookups by the FCA rate groups.
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AVISTA CORPORATION
RESPONSE TO REQUEST F'OR INFORMATION
JURISDICTION:
CASE NO.:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G-20-0s
IPUC
Production Request
sraff-006
DATE PREPARED : 07 124 /2020
RESPONDER: Joel Anderson
DEPARTMENT: State & Federal Regulation
TELEPHONE: [phone]
EMAIL: [e-mail]
REQUEST:
On page 8, lines 8-l 1 ofthe Application, Avista lists the impacts ofthree drivers (weather, energy
efficiency, and other) on use-per-customer and FCA Revenue for the residential group and
non-residential groups. Please pmvide supporting documentation for these calculations including
Excel workbooks with formulas intact and enabled.
RESPONSE:
Please see Sta[PR_006 Attachment A containing the calculation of the 2019 deferred revenue
driver estimates.
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AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO.:
REQUESTER:
TYPE:
REQUESTNO.:
IDAHO
AVU-G-20-05
IPUC
Production Request
Staff-007
DATE PREPARED: 07 124/2O20
RESPONDER: Joel Anderson
DEPARTMENT: State & Federal Regulation
TELEPHONE: [phone]EMAIL: [e-mail]
REQUEST:
Onpage 7,line 17 through page 8, line 3 of its Application, the Company estimates that in 2019 its
Demand Side Managonent (DSM) programs reduced residential usage by approximately 720,000
therms and non-residential usage by approximately 160,000 therms.
a. Please reconcile these results to the Company's 2016, 2017, 2018, and 2019 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 2019 for the same customer groups.
RESPONSE:
Staff PR 006 Attachment A (previously provided) includes a reconciliation of the annual DSM
reportlr to the 2019 estimated iccumulated savings since the 2016 test year upon which 2019 rates
were established.
The table below shows the change in total weather-normalized consumption from the 2016 test
year to 2018 total weather normalized consumption.
2016 Test Year
AVU-G-17-01
2019
Normalized Change
Residential
Normalized Annual Usage
customer Billings
Average Monthly Use/Cust
Non-Residential
Normalized Annual Usage
Customer Billings
Average Monthly Use/Cust
59,155,634
943,24s
63
23,27L,LLg
L7,O57
r364
63,966,979
r,or2,322
63
25,555,195
18,156
\,404
4,810,345
69,O77
o
2,244,O76
1,099
44
L 2016 DSM savings values reconcile to table ES-2 in the 2016 DSM report,2017 DSM savings values reconcile to
table ES-2 in ttre 2017 DSM report,2018 DSM savings values reconcile to Table ES-2 in the 2018 DSM report and
2019 DSM savings values reconcile to Table I in the dmfi 2019 DSM report
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