20040209Falkner Exhibits.pdf

DAVIDJ. MEYER
SENIOR VICE PRESIDENT AND GENERAL COUNSEL
A VISTA CORPORATION
O. BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-3727
TELEPHONE: [phone]
FACSIMILE: [phone]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPUCA TION
OF A VISTA CORPORATION FOR THE
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR ELECTRIC AND
NATURAL GAS SERVICE TO ELECTRIC AND
NATURAL GAS CUSTOMERS IN THE STATE OF IDAHO
CASE NO. A VU-Q4-
EXlllBIT NO. 14
DON M. FALKNER
FOR A VISTA CORPORATION
(ELECTRIC ONLY)
A VISTA UTILITIES
ELECfRIC RESULTS OF OPERATION
IDAHO PRO FORMA RESULTS
TWELVE MONlHS ENDED DECEMBER 31, 2002
(OOO'S OF DOLLARS)
WITII PRESENT RATES WITII PROPOSED RATES
Actual Per Proposed Pro Forma
Line Results Total Pro Forma Revenues &Proposed
No.DESCRIPTION Report Adjustments Total Related Esp Total
REVENUES
Total General Business $153,639 $ (7.501)$146,138 $35.222 $181,360
Interdepartmental Sales 110 110
Sales for Resale 051 (5.075)976 16,976
Total Sales of Electricity 175,800 (12 576)163,224 222 198 446
Other Revenue 19,067 (14 366)701 701
Total Electric Revenue 194 867 (26,942)167,925 35.222 203,147
EXPENSES
Production and Transmission
Operating Expenses 61,144 (22,697)38,447 38,447
Purchased Power 39,904 655 46,559 46,559
Depreciation and Amortization 575 10.271 10,846 10.846
Taxes 619 275 894 894
Total Production & Transmission 105.242 (5.496)99,746 99,746
Distribution
Operating Expenses 887 608 495 495
Depreciation 670 670 670
Taxes 010 (1.913)097 380 477
Total Distribution 16.567 (305)16.262 380 16.642
Customer Accounting 102 194 296 III 407
Customer Service & Information 016 (2.536)480 480
Sales Expenses 385 421 421
Administrative & General
Operating Expenses 343 546 17,889 17.980
Depreciation 878 878 878
Taxes
Total Admin. & General 20,221 547 21,768 859
Total Electric Expenses 150,533 560)143,973 582 144 555
OPERATING INCOME BEFORE FIT 334 (20,382)23,952 34,640 58,592
FEDERAL INCOME TAX
Current Accrual 405 (8,631)774 12.124 12,898
Deferred Income Taxes (746)212 466 2,466
NET OPERATING INCOME $35,675 ($14,963)$20,712 $22.516 $43,228
RATE BASE
PLANT IN SERVICE
Intangible $11,353 $11,353 $11 353
Production 247 926 62,282 310,208 310,208
Transmission 100,112 050 109.162 109,162
Distribution 257,643 (478)257,165 257,165
General 36,363 36,363 36.363
Total Plant in Service 653,397 70.854 724,251 724 251
ACCUMULATED DEPRECIATION 213,999 459 218,458 218,458
ACCUM. PROVISION FOR AMORTIZATION 368 368 368
Total Accum. Depreciation & AmOrl.217,367 4,459 221,826 221.826
GAIN ON SALE OF BUILDING (625)(625)(625)
DEFERRED TAXES (61 593)(61 593)(61,593)
TOTAL RATE BASE $436.030 $4,177 $440,207 $440,207
RATE OF RETIJRN 18%71%82%
Exhibit No. 14, Page 1 of 10
D. Falkner
Avista Corporation
Line
No.
A VISTA UTILITIES
Calculation of General Revenue Requirement
Idaho - Electric System
TWELVE MONTHS ENDED DECEMBER 31, 2002
(OOO'S OF DOLLARS)
Description
Pro Fonna Rate Base
Proposed Rate of Return
Net Operating Income Requirement
Pro Forma Net Operating Income
Net Operating Income Deficiency
Conversion Factor
Revenue Requirement
Total General Business Revenues
Percentage Revenue Increase
I IDAHO
$440,207
820%
$43,228
$20,712
$22,516
63926135
$35,2221
$146,248
24.08%
Exhibit No. 14. Page 2 of 10
D. Falkner
Avista Corporation
A VISTA UTILITIES
CALCULATION OF CONVERSION FACTOR: IDAHO ELECTRIC
TWELVE MONTHS ENDED DECEMBER 31, 2002
Description
Revenue:
Expense:
Uncollectibles (1)
Commission Fees (2)
Idaho Income Tax (3)
Total Expense
Net Operating Income Before FIT
Federal Income Tax (g) 35%
REVENUE CONVERSION FACTOR
Factor
000000
003164
002577
010780
016521
983479
344218
639261
Exhibit No. 14, Page 3 of 10
D. Falkner
A vista Corporation
AVlSTA UTIUI'IES
EIECIRIC RESULTS OF OPERATION
IDAHO PRO FORMA RESULTS
TWELVE MONTHS ENDED DECEMBER 31, 2002
(000'8 OF DOUARS)
DESCRIPTION
REVENUES
Total Gall%al Business $153639
Interdepartmental Sales 110
Sales for Resale 051
Total Sales of Electricity 115 800
001% Re'mlue 061
Total Electric Re'mlue 194.867
EXPENSES
Production and Transmission
Opl%ating Expemes 144
Purchased POWI%904
Depreciation and Amortization 515 218
Taxes 619
Total Production & Transmission 105 242 218
Distribution
Opl%ating Expenses 881
Depreciation 610
Taxes 010
Total Distribution 561
CustOIlll% Al:COWlting 4,102
CustOll\l% Sezvice & Infonnation 016
Sales Expemes 385
Administrative & Gall%al
Opl%ating Expemes 343
Depreciation 818
Taxes
Total Admin. & Galcnl 221
Total Electric Expemes 150 533 218
OPERATING INCOME BEFORE FIT 44,334 (218)
FEDERAL INCOME TAX
Current Al:crual 405
DefClred lru:ome Taxes (146)
NET OPERATING INCOME $35 675 ($218)
RATE BASE
PlANT IN SERVICE
Intangible $11,353
Production 241 926 229 313 (3,009)
Transmission 100 112
Distribution 257,643
Galcnl 36.363
Total Plant in Sezvice 653.397 229 313 (3,009)
ACCUMUlATED DEPRECIATION 213,999 086 (1,574)
ACCUM. PROVISION FOR AMORTIZATION 368
Total Al:CUDL Depreciation & Amort.211 367 086 514)
GAIN ON SAIl! OF BunDING (625)
DEFERRED TAXES (60 998)219
TOTALRATEBASE $436030 ($60998)($406)143 $1,313 ($1,435)
RATE OF RETIJRN 8.18%
Exhibit No. 14, Page 4 of 10
D. Falkner
Avista Corporation
AVISTA UTII1I'IES
E.LECIRIC RESULTS OF OPERATION
IDAHO PRO FORMARESULTS
TWEL VB MONTIIS ENDED DECEMBER 31. 2002
(OOOS OFDOUARS)
DESCRIPTION
REVENUES
Total General Business $153,639 $15,947 S (1 682)
Int""departmenta1 Sales 110
Sales for Resale 22,051
Total Sales of Electricity 175.800 947 (1,682)
Oth"" Revalue 067
Total Electric Revalue 194 867 947 (1,682)
EXPENSES
Production and Transnussion
Operating ExpalSes 61,144 257
Purchased Pow""904
Deprec:iation and Amortization (59)734
Taxes 619
Total Production & Transmission (59)105 401 257
Distribution
Operating ExpalSes 887
Deprec:iation 670
Taxes 010 171 (3)(1,660)
Total Distribution 16,567 171 (3)(1,660)
Customtr Accounting 102
Customtr StZVice & Infonnation 016
Sales Expmses 385
Administrati~ & Genaal
Op""ating Expmses 16,343
Depreciation 878
Taxes
Total Admin. & Gen""al 221
Total Electric ExpalSes (59)150.692 262 254 660)
OPERATING INCOME BEFORE FIT 44,175 15.685 (254)(22)
FEDERAL INCOME TAX
Cmratt Accrual 405 490 (89)(8)
Deimed Income Taxes (725)
NET OPERATING INCOME $38 $35495 S10,195 (SI65)($14)
RATE BASE
PLANT IN SERVICE
Intangible $11,353
Production 110 262,569
Transmission 100 112
Distribution (478)257,165
General 36,363
Total Plant in StZVice 110 (478)667,562
ACCUMULATED DEPRECIATION 216 511
ACCUM. PROVISION FOR AMORTIZATION 368
Total AcCUDL Deprec:iation & Amort.219 879
GAIN ON SAlE OF BUll.DING (625)
DEFERRED TAXES (60779)
TOTALRATEBASE 110 ($478)S386 279
RATE OF RETURN
Exhibit No. Page 5 of 10
D. Falkner
Avista Corporation
AVISTA UTIIITIES
EI1!CTR.IC RESULTS OF OPERATION
IDAHO PRO FORMA RESULTS
TWELVE MONTHS ENDED DECEMBER 31. 2002
(OOOS OF DOUARS)
DESCRIPTION
REVENUES
Total General Business $ (24,862)
Interdepartmental Sales
Sales for Resale
Total Sales of Electricity (24.862)
OIherRevmue
Total Electric Revmue (24,862)
EXPENSES
Production and Transmission
Operating &PalSes (11,261)
Purchased Power
Depreciation and Amortization
Taxes
Total Production & Transmission (11 261)
Distribution
Operating &PalSes
Depreciation
Taxes (266)
Total Distribution (266)
CustOJJlf:l Ai:co1U1ting (66)(19)
CustOJJlf:l Scr\ice & Infonnation
Sales &penses
Administrative & General
Operating &penses (52)(64)
Depreciation
Taxes
Total Admin. & Gen""al (52)(64)
Total Electric &PalSes (65)(51)(11,610)
OPERATING INCOME BEFORE FIT (36)(16)(13.192)
FEDERAL INCOME TAX
Current Ai:crual (13)(6)(1,663)184 (8,559)
Defesred JnCOJIII: Taxes 112 947
NET OPERATING INCOME ($23)$42 ($10)$33 $1,551 ($3.184)($8 580)
RAm BASE
PlANT IN SERVICE
Intangible
Production
Transmission
Distribution
Gen""al
Total Plant in Service
ACCUMUlATED DEPRECIATION
ACCUM.PROVISIONFOR AMORTIZATION
Total Ai:CUDL Depreciation & Amari.
GAIN ON SAm OF BUlIDING
DEFERRED TAXES
TOTALRAmBASE
RATE OF RETIJRN
ExhibitNo. 14, Page 6 oflO
D. Falkner
Avista Corporation
A VISTA UTIUTIBS
EI1JCI1UC RESULTS OF OPERATION
IDAHO PRO FORMA RESULTS
TWELVE MONTIIS ENDED DECEMBER 31 2002
(OOOS OF DOUARS)
DESCRIPTION
REVENUES
Total Galeral Business 096
Intcmepartmmtal Sales
Sales for Resale
Total Sales of Electricity 096
Other Re......ue
Total Electric Rewnue 096
EXPENSES
Production and Transmission
Operating Expenses (24)150 296
Purchased Power
Depreciation and Amortization 926 881 629 232
Taxes
Total Production & Transmission (24)926 881 150 949 288
Distribution
Operating Expenses 103
Depreciation
Taxes (5)(32)(3)
Total Distribution (32)(3)
CustOlllfr Accounting
Customer Service & Infonnation (2,542)
Sales Expenses
Administrati.... & General
Operating E"Penses 122
Depreciation
Taxes
Total Admin. & Galeral 122
Total Electric Expenses (24)463 881 432 917 285
OPERATING INCOME BEFORE FIr 633 881)(432)(2,911)(285)
FEDERAL INCOME TAX
Cwrmt Accrual 221 (151)021)(100)
Deferred Income Taxes 010)
NET OPERATING INCOME $16 $412 ($1,817)($281)($1,896)($185)
RAm BASE
PLANT IN SERVICE
Intangible
Production 39,096 453
Transmission
Distribution
Galeral
Total Plant in Service 096 453
ACCUMUlATED DEl'RECIATION 629 191
ACCUM. PROVISION FOR AMORTIZATION
Total Accum. Depreciation & AmOrl.629 191
GAIN ON SAIl! OF BUllDING
DEFERRED TAXES (502)
TOTALRAmBASE $36 965 343
RATE OF RETURN
Exhibit No. 14, Page 7 of 10
D. Falkner
Avista Corporation
AVISTA UI'JlII1FS
El.ECIRIC RESULTS OF OPERATION
IDAHO PRO FORMARESULTS
TWELVE MONlHS ENDED DECEMBER 31, 2002
(OOO'S OF DOllARS)
Pro Forma
ProForma Pro Forma Labor
DESCRIPTION Pension Insurance Non-Exec
REVENUES
Total Gaunl Business
IntC%departmental Sales
Sales for Resale 1115)
Total Sales of Electricity (5,1115)
OthC% Revenue (14,366)
Total Electric Revenue (19,441)
EXPENSES
Production and Transmission
Opcnting Expenses (13,915)237 $390
Purchased PowC%655
Depreciation and Amortization 5184
Taxes
Total Production & Transmission 184 (7,260)237 390
Distribution
Opcnting Expenses 163 272
Depreciation
Taxes (131)(7)(11)(12)
Total Distribution (131)156 (11)260
CustOJ1lC% Accounting 140
CustOIllff Service & Infonnation
Sales Expenses
Administrative & GenC%al
Operating Expenses 193 009 273
Depreciation
Taxes
Total Admin. & General 193 009 273
Total Electric Expenses 184 (7,391)684 998 084
OPERATING INCOME BEFORE FIT (184)(12 050)(684)(998)(1,084)
FEDERAL INCOME TAX
Curralt Accntal (4,218)(239)(349)(379)
Defmed Income Taxes (64)
NET OPERATING INCOME (5120)($7,832)($445)(5649)($705)
RAm BASE
PLANT IN SERVICE
Intangible
Production 5829
Transmission
Distribution
GenC%al
Total Plant in Service 829
ACCUMUlATED DEPRECIATION
ACCUM. PROVISION FOR AMORTIZATION
Total AcCWIL Depreciation & Amorl.
GAIN ON SAlE OF BUllDING
DEFERRED TAXES (290)
TOTAL RAm BASE $539
RAm OF RETURN
ExhibitNo. 14, Page 8 oflO
D. Falkner
Avista Corporation
AVISTA UTIIlTIES
EIECTRIC RESULTS OF OPERATION
IDAHO PRO FORMA RESULTS
TWELVEMONTIJS ENDED DECEMBER 31, 2002
(OOO'S OF DOllARS)
DESCRIPTION
REVENUES
Total General Business
Interdepartmental Sales
Sales for Resal~
Total Sales of Electricity
Other R~venu~
Total Electric Revenue
EXPENSES
Production and Transmission
Operating ExpC21Ses
Purchased Power
Depreciation and Amortization
Taxes
Total Production &. Transmission
Distribution
Operating ExpC21Ses
Depreciation
Taxes
Total Distribution
16 CustoJ\U% Accounting17 CustoJ\U% Servic~ &. Infonnation18 Sales Expenses
Administrative &. General
Operating ExpC21Ses
Depreciation
Taxes
Total Admin. &. General
23 Total Electric ExpC21Ses
24 OPERATING INCOME BEFORE FIT
FEDERAL INCOME TAX
25 Cumnt Accrual26 Deferred Income Taxes
27 NET OPERATING INCOME
RA'IEBASE
PLANT IN SERVICE
Intangible
Production
Transmission
Distribution
General
Total Plant in Service
34 ACCUMUIATED DEPRECIATION
35 ACCUM.PROVISIONFOR AMORTIZATION36 Total AcCUDL Depreciation &. Amari.
37 GAIN ON SAlE OF BUIIJ)ING
38 DEFERRED TAXES
39 TOTALRA'IEBASE
40 RA'IEOFRETURN
Pro Forma Pro Fonna ProForma
Labor Vegetation Transmission
Executive Management Project
$146 138
110
976
163 224
701
167 925
$23 $150 447
559
$252 846
136 894
150 388 746
070 495
670
(13)(4)097
057 (4)262
4,296
480
421
889
878
21,768
207 384 143 973
(23)(1,207)(384)(26)23,952
(8)(422)(285)(65)774
150 466
($15)($785)($249)($17)$20712
11,353
$2,261 310,208
050 109.162
257 165
363
050 261 724,251
126 218,458
368
126 221 826
(625)
(75)(28)(61 593)
849 232 $440207
71%
ExbibitNo. 14, Page 9 of 10
D. Falkner
A vista Corporation
AVISTA UTll.IT1ES
ELECTRIC RESULTS OF OPERATION
IDAHO PRO FORMA RESULTS
1997 TEST VEAl!. VERSUS 2002 TEST VEAR
(ooo'S OF DOLLARS)
LiDo
No.DESCRIPTION
AVERAGE CUSTOMERS 98,260 42%42%
REVENUES
Total General Business less Pothu:h ReveDues 400-444 $118.442 $119769 5(1.327)1.11%51.111.77 218.5(107.13)79%Spuial contract revenues 6!16 /1.25/445 J46./6%
DSM Tariff Revenues 339
(/.
339)/00.00%Iotenlepllrtmeutal Sales 448 110 74.60%1.03 60.94%
Sales for Resale 447 16.976 47.662 (30.686)64.38%159.485.(325.71)-67.15%Total Sales of Electricity 163,224 180.084 (16.860)36%532.12 832.(300.61)16.40%
Other Revenue 45t-456 701 052 (2.351)33.34%44.71.77 (27.64)38.51%Total Electric ReveDue 167925 187.136 (19.211)10.27%576.904.(328.26)17.24%
EXPENSES
ProductioD and Tnw.smissioD
OpenIIing Expenses 500-554/560-573 19.515 16,071 444 21.43%183.18 163.19.12.00%Fuel Expeose-Steam and Thermal 501 & 547 18,932 14.032 900 34.92%
Purchased Power 555-557 139 46,468 (22.329)-48.05%226.472.(246.33)52.09%Special contract purchased power component 555 22.420 345 /5.075 205.24%Deprecial;oD and Amoni...ioD 403-407 10,846 812 034 23.08%101.81 89.12.13 13.53%Taxes afX 894 492 (1.598)29.10%36.55 55.(19.34)34.60%
Total ProdUCtiOD & Tnw.smlssioD 99.746 98.220 526 1.55%936.999.(63.32)-6.33%
Distributioo
OpenIIing Expenses 580-598 495 604 891 15.9O'JIo 60.57.91%
Deprecialion ADP 670 698 972 20.69%53.47.11.32%
Taxes...""luding state income lax E-oTX 641 060 581 76.75%34.18 20.13.63.07%Total Distribution 15.806 12.362 444 27.86%148.125.22.17.92%
Customer Accounting 901-905 296 755 541 14.41%40.38.52%
Customer Service & Infomwion 907-9 to 480 638 (158)-9.65%13.16.(2.78)16.68%DSM Tariff Revenue amortization 332
Sales Expenses 911-916 421 131 290 221.37%1.33 196.99%Sublolal for CIIs/. AcelinglServicelSales ad DSM /97 524 673 /2./8%58.56.47%
Administrative & General
Operating Expenses 920-935 889 15,855 034 12.83%167.161.36 07%
Depreciation E-ADP 878 684 194 44.49%36.27.33.24%Taxes E-oTX (43)97.73%44)97.78%
Total Admin. & General 21.768 18.583 185 17.14%204.33 189.15.04%Total Electric Expenses 143517 136.021 496 51%347.13 384.(37.17)69%
OPERATING INCOME BEFORE FIT 408 51.115 (26,707)52.25%229.520.(291.09)55.96%
FEDERAL AND STATE INCOME TAX
SIT 456 803
Cwrenl Accrual FIT 774 999 (8.225)91.40%91.58 (84.31)-92.06%Defeimilocome Taxes & rrc FIT 466 225 (759)23.53%23.32.(9.67)29.46%Totallocome Taxes 696 14.027 (10,331)73.65%34.142.(108.06)75.70%
... SETrLEMENT EXCHANGE POWER 715 715)100.00%
NET OPERATING INCOME $20.712 532.373 (511,661)36.02%5194.5329.(5135.05)-40.99%
RATE BASE
PLANT IN SERVICE
Intangible 301-303 511.353 55.850 55.503 94.07%5106.559.$47.78.99%Produclion 310-346 310.208 253.904 56,304 22.18%2,911.79 2,584.327.12.69%Tnmsmission 350-359 109.162 372 24.790 29.38%024.858.166.19.33%Distribution 360-373 257.165 203,096 54.069 26.62%413.066.346.98 16.79%General 389-398 36.363 33,672 691 99%341.32 342.(1.36).0.40%Total Plant in Service 724.251 580,894 143,357 24.68%6,798.911.886.14.99%ACCUMULATED DEPRECIATION 108 218.458 170.SOD 958 28.13%050.735.315.18.18%ACCUM. PROVISION FOR AMORTIZATION III 368 616 752 108.42%31.61 16.15.16 92.16%Total Accum. Depreciation & Amon.221.826 172 116 49.710 28.88%082.19 751.64 330.18.87%GAIN ON SALE OF Bun.DING (625)(940)315 33.51%(5.87)(9.57)38.66%DEFERRED TAXES 190/282/283 (61.593)(47.292)(14 301)30.24%(578.15)(481.29)(96.86)20.13%
TafALRATEBASE 5440.207 5360.546 $79.661 22.09%$4.132.53.669.$462.12.61%
RATEOFRETURN 71%98%
Exhibit No. 14. Page 10 of 10
D. Falkner
A vista Corporation
DAVIDJ. MEYER
SENIOR VICE PRESIDENT AND GENERAL COUNSEL
A VISTA CORPORATION
O. BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-3727
TELEPHONE: [phone]
FACSIMILE: [phone]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION FOR THE
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR ELECTRIC AND
NATURAL GAS SERVICE TO ELECTRIC AND
NATURAL GAS CUSTOMERS IN THE STATE OF IDAHO
CASE NO. A VU-04-
EXHIBIT NO. 15
DON M. FALKNER
FOR A VISTA CORPORA nON
(GAS ONLY)
AViSTA UTILITIES
GAS RESULTS OF OPERATION
IDAHO PRO FORMA RESULTS
lWELVE MONTIIS ENDED DECEMBER 31, 2002
(OOO'S OF DOLLARS)
WITII PRESENT RATES WITH PROPOSED RATES
Actual Per Proposed Pro Forma
Line Results Total Pro Forma Revenues &Proposed
No.DESCRIPTION Renort Adjustments Total Related Exn Total
REVENUES
Total General Business $58,983 $ (8,031)$50,952 $4,754 $55,706
Total Transportatioo 198 (254)944 944
Other Revenues 884 (228)656 656
Total Gas Revenues 61,065 (8,513)52,552 754 57,306
EXPENSES
Exploration and Development
Production
City Gate Purchases 42,560 (6,922)35,638 35,638
Porchased Gas Expense
Net Nat Gas Storage Trans
Total Production 42.700 (6,897)35,803 35,803
Underground Storage
Operating Expeoses 134 134 134
Depreciation 111 111 111
Taxes
Total Underground Storage 286 290 290
Distribution
Operating Expenses 987 220 207 207
Depreciation 125 125 125
Taxes 505 (1,156)349 400
Total Distribution 617 (936)681 732
Customer Accouoting 049 068 083
Customer Service & Information 530 (269)261 261
Sales Expenses 214 234 234
Administrative & General
Operating Expenses 572 240 812 824
Depreciation 618 618 618
Taxes
Total Admin. & General 200 241 441 453
Total Gas Expense 56,596 (7,818)48,778 48,856
OPERATING INCOME BEFORE FIT 469 (695)774 676 450
FEDERAL INCOME TAX
Current Accrual 200 354 554 637 191
Deferred FIT (2,966)(2,917)(2,917)
AmOrl ITC (18)(18)(18)
NET OPERATING INCOME 253 ($1,098)$3,155 $3,039 $6,194
RATE BASE: PLANT IN SERVICE
Uoderground Storage 041 041 041
Distribution Plant 87,598 940 88,538 88,538
General Plant 709 709 709
Total Plant in Service 99,348 940 100,288 100,288
ACCUMULATED DEPRECIATION
Underground Storage 294 294 294
Distribution Plant 26,397 26,397 26,397
General Plant 702 702 702
Total Accum. Depreciation 31,393 31,393 31,393
DEFERRED FIT (7,192)(7,192)(7,192)
GAS INVENTORY 572 572 572
GAIN ON SALE OF BUILDING (197)(197)(197)
TOTALRATEBASE $67,955 ($4,877)$63,078 $63,078
RATE OF RETIJRN 26%00%82%
Exhibit No. 15, Page 1 of 8
D. Falkner
Avista Corporation
Line
No.
A VISTA UTILITIES
Calculation of General Revenue Requirement
Idaho. Gas
TWELVE MONTHS ENDED DECEMBER 31, 2002
(OOO's OF DOLLARS)
Description
Pro Forma Rate Base
Proposed Rate of Return
Net Operating Income Requirement
Pro Forma Net Operating Income
Net Operating Income Deficiency
Conversion Factor
Revenue Requirement
Total General Business Revenues
Percentage Revenue Increase
I IDAHO
$63,078
820%
$6,194
$3,155
$3,039
639261
$4,754 ~
$51,896
16%
Exhibit No. 15, Page 2 of 8
D. Falkner
A vista Corporation
A VISTA UTILITIES
CALCULA TION OF CONVERSION FACTOR: IDAHO GAS
TWELVE MONTHS ENDED DECEMBER 31, 2002
Description
Revenues
Expense:
Uncollectibles (1)
Commission Fees (2)
Idaho Income Tax (3)
Total Expense
Net Operating Income Before FIT
Federal Income Tax (g) 35%
REVENUE CONVERSION FACTOR
Factor
1.000000
003164
002577
010780
016521
983479
344218
639261
Exhibit No. 15, Page 3 of 8
D. Falkner
A vista Corporation
A VISTA UTlllTIES
GAS RESULTS OF OPERATION
IDAHO PRO FORMA RESULTS
TWELVE MONTHS ENDED DECEMBER 31, 2002
(OOO'S OF DOlLARS)
Per Defund Defund Gain Weatherizmon
Line ReSIIIts FIT on Office mdDSM
No.DESCRIPTION Re ort Rate Base Building Investment
REVENUES
Total General Business $58 983
Total Transportation 198
Other Revenues 884
Total Gas Revenues 61,065
EXPENSES
Exploration and Development
Production
City Gate Purchases 560
Purchased Gas Expense
Net Nat Gas Storage Trans
Total Production 42,700
Underground Storage
Operating Expenses 134
Depreciation 111
Taxes
Total Underground Storage 286
Distribution
Operating Expenses 987
Depreciation 125
Taxes 505
Total Distribution 617
Customer Accounting 049
Customer Service & Information 530
Sales Expenses 214
Administrative & General
Operating Expenses 572
Depreciation 618
Taxes
Total Admin. & General 200
Total Gas Expense 56,596
OPERATING INCOME BEFORE FIT 469
FEDERAL INCOME TAX
Cum:nt Accrual 200
Deferred FIT (2,966)
Amort ITC (18)
NET OPERATING INCOME $4,253
RATE BASE: PLANT IN SERVICE
Underground Storage 041
Distribution Plant 87,598 941
General Plant 709
Total Plant in Service 348 941
ACCUMULATED DEPRECIATION
Underground Storage 294
Distribution Plant 26,397
General Plant 702
Total Aceum. Depreciation 31,393
DEFERRED FIT (7,261)
GAS INVENTORY 572
GAIN ON SAlE OF BUilDING (197)
TOTAL RATE BASE $67 955 ($7,261)($128)$1,572 $941
RATE OF RETURN 26%
Exhibit No. 15, Page 4 of 8
D. Falkner
Avista Corporation
A VISTA UTILITIES
GAS RESULTS OF OPERATION
IDAHO PRO FORMA RESULTS
TWELVE MONTIIS ENDED DECEMBER 31, 2002
(OOO'S OF DOLLARS)
EIImirultò
S.btot81 Fnnchise Property Uncollectihle
DESCRIPTION Actu1 Fees Tax Expense
REVENUES
Total General Business $58,983 $ (1,082)
Total Transportation 198 (14)
Other Revenues 884
Total Gas Revenues 61,065 096)
EXPENSES
Exploration and Development
Production
City Gate Purchases 560
Purchased Gas Expense
Net Nat Gas Storage Trans
Total Production 42,700
Underground Storage
Operating Expenses 134
Depreciation 111
Taxes
Total Underground Storage 286
Distribution
Operating Expenses 981
Depreciation 125
Taxes 505 148)
Total Distribution 617 (1,148)
Customer Accounting 049 (1l3)
Customer Service & Information 530
Sales Expenses 214
Administrative & General
Operating Expenses 572
Depreciation 618
Taxes
Total Admin. & General 200
Total Gas Expense 596 (1,148)(112)
OPERATING INCOME BEFORE FIT 469 (5)112
FEDERAL INCOME TAX
CuITent Accrual 200 (2)
Deferred FIT (2,966)
Amort ITC (18)
NET OPERATING INCOME $4,253 $34 ($3)$73
RATE BASE: PLANT IN SERVICE
Underground Storage 041
Distribution Plant (1)538
General Plant 709
Total Plant in Service (I)100,288
ACCUMULATED DEPRECIATION
Underground Storage 294
Distribution Plant 397
General Plant 700
Total Accum. Depreciation 31,393
DEFERRED FIT (7,192)
GAS INVENTORY 572
GAIN ON SALE OF BUll.DING (197)
TOTAL RATE BASE ($1)$63 018
RATE OF RETURN
Exlu."bit No. 15, Page 5 of 8
D. Falkner
Avista Corporation
A VISTA UTILITIES
GAS RESULTS OF OPERATION
IDAHO PRO FORMA RESULTS
TWELVEMONTHS ENDED DECEMBER 31, 2002
(OOO'S OF DOLLARS)
Restate Payroll Revenae
Line Debt CI~Gas Sapply
No.DESCRIPTION Interest Adjustment
REVENUES
Total General Business $ (6,949)
Total Transportation (240)
Other Revenues (228)
Total Gas Revenues (7,417)
EXPENSES
Exploration and Development
Production
City Gate Purchases (6,922)
Purchased Gas Expense
NetNat Gas Storage Trans
Total Production 922)
Underground Storage
Operating Expenses
Depreciation
Taxes
Total Underground Storage
Distribution
Operating Expenses
Depreciation
Taxes (1)(2)
Total Distribution (2)
Customer Accounting (23)
Customer Service & Information (279)
Sales Expenses
Administrative & General
Operating Expenses (83)(19)
Depreciation
Taxes
Total Admin. & General (83)(19)
Total Gas Expense (82)107 (7,245)
OPERATING INCOME BEFORE FIT (6)(107)(172)
FEDERAL INCOME TAX
Current Accrual (2)576 (37)(60)
Defened FIT
Amort ITC
NET OPERATING INCOME ($4)$53 ($71)($576)($70)($1l2)
RATE BASE: PLANT IN SERVICE
Underground Storage
Distribution Plant
General Plant
Total Plant in Service
ACCUMULATED DEPRECIATION
Underground Storage
Distribution Plant
General Plant
Total Aceum. Depreciation
DEFERRED FIT
GAS INVENTORY
GAIN ON SALE OF BUILDING
TOTAL RATE BASE
RATE OF RETURN
&In"bit No. 15, Page 6 of 8
D. Falkner
Avista Corporation
AVISTA UTIIlTJES
GAS RESULTS OF OPERATION
IDAHO PRO FORMA RESULTS
TWELVEMONTHS ENDED DECEMBER 31, 2002
(OOO'S OF DOlLARS)
Pro F ouna Pro F onna
ProFonna ProFonna Labor Labor ProFonna
DESCRIPTION Pension Im1mmc:e Non-Exec Exemtive ToW
REVENUES
Total General Business $50,952
Total Transportation 944
Other Revenues 656
Total Gas Revenues 52,552
EXPENSES
Exploration and Development
Production
City Gate Purchases 35,638
Purchased Gas Expense
Net Nat Gas Storage Trans
Total Production 35,803
Underground Storage
Operating Expenses 134
Depreciation 111
Taxes
Total Underground Storage 290
Distribution
Operating Expenses 111 207
Depreciation 125
Taxes (2)(2)(3)349
Total Distribution (2)108 681
Customer Accounting 068
Customer Service & Information 261
Sales Expenses 234
Administrative & General
Operating Expenses 204 812
Depreciation 618
Taxes
Total Admin. & General 204 441
Total Gas Expense 168 202 268 778
OPERATING INCOME BEFORE FIT (168)(202)(268)(13)774
FEDERAL INCOME TAX
Cunent Accrual (59)(71)(94)(5)554
Deferred FIT (2,917)
Amort ITC (18)
NET OPERATING INCOME ($109)($131)($174)($8)155
RATE BASE: PLANT IN SERVICE
Underground Storage 041
Distribution Plant 538
General Plant 709
Total Plant in Service 100,288
ACCUMULATED DEPRECIATION
Underground Storage 294
Distribution Plant 26.397
General Plant 702
Total Aceum. Depreciation 31,393
DEFERRED FIT (7,192)
GAS INVENTORY 572
GAIN ON SALE OF BUll.DING (197)
TOTAL RATE BASE $63,078
RATE OF RETURN 00%
fuhibitNo.Page7 of8
D. Falkner
Avista Corporation
AVISTA lITll.ITIES
GAS RESULTS OF OPERATION
IDAHO PRO FORMA RESULTS
1998 COMMISSION BASIS YEAR VERSUS 2002 TEST YEAR
(OOO'S OF DOLLARS)
LIne
No.DESCRlPI'ION
Ave..." Cuslomon 49,712 18.18%49,712 18.18%
REVENUES
ToIai G""'" Business $50.952 $31,501 $19.451 61.75%$g67.$633.$233.36.86%
Total Transporonion 944 956 (1.012)51.74%16.39.$ (23.28)59.16%
00... Revenues 656 757 (101)13.34%11.17 15.$(4.06)26.66'J.
Sales for Resale inclodcd as 00...4.398
Total Gas Revenues 52,552 38.612 13.940 36.10%894.776.$117.15.16%
Estimnle Gross Margin - Line 4 - Line 9 16,749 16,164 585 62%285.325.$ (40.07)12.32%
EXPENSES
Explon1ion ond Developmen'
Production
Cily G.,e Pun:lwes 35.638 22.893 12,745 55.67%606.460.5146.07 31.72%
Pun:lwcd Gas Expense (17)564.71%1.34 (0.34)$1.68 -494.12%
Net N81 Gas Stor.ge Trons (428)514 120.09%(8.61)$10.116.96%
Total Production 35,803 22.448 13.355 59.49%609.45\.56 5157.34.95%
Underground SIonI8e
Operating Expenses 134 110 21.82%17%
Depm:i.'ion III 112 (I).0.89%5 (.36)16.00%
Texes 25.00%94%
Total Underground Slor.ge 290 258 12.40%5(.25)-4.82%
Dieln.ution
Operating Ex-2;1.07 673 534 31.92%37.56 33.53.11.62%
Depm:i.lion 125 802 323 17.92%36.36.
$ (.
08).0.22%
Texes 1.349 802 547 68.20%22.96 16.13 56.42.34%
ToIai Dielribution 681 277 404 32.83%96.86.510.12.38%
Customer Accounting 068 416 652 46.05%35.28.56.23.60%
Customer Service & lnformetion 261 222 17.57%5(.03).0.67%
Sales Expenses 234 185 26.49%99%
Administr81ive & General
Operating Expenses 812 396 416 12.25%64.68.31 5(3.43)02%
Doprcci.tion 618 392 226 57.65%10.52.33.33%
Texes 57.14%35.71%
ToIai Admin. & G""'"441 795 646 17.02%75.59 76.5 (.75).0.98%
Total Gas Expense 48.778 32.601 16,177 49.62%830.655.5174.26.60%
25.Total Gas Oper Exp excluding Total Production 12.975 10.153 822 27.79%220.204.$16.13%
256 Total O&M and A&G excl Depr and Taxes 716 1102 714 24.48%148.35 14fJ.$7.5.32%
OPERATING INCOME BEFORE AT 774 6,0 II (2,237)37.22%64.120.92 $ (56.68)-46.87%
FEDERAL INCOME TAX
Cumnl AcauaI 3,554 743 811 378.38%60.14.545.304.68%
Defmed AT (2.917)929 (3,846)-413.99%(49.65)18.5 (68.34)365.65%
AIID1 ITC (18)(19)26%(0.31)(0.38)18.42%
NET OPERATING INCOME $3.155 54,358 ($1).03)27.61%553.587.5 (33.97)38.75%
RATE BASE: PLANT IN SERVICE
Underground Storage 041 859 182 75%585.$97.5(11.94)12.22%
Dieln.ution PIon.88,538 938 600 19.75%1,506.98 487.519.1.32%
G""'" PI...709 291 418 64%114.126.55 5 (12.36)77%
ToIai PI... in Service 100;1.88 85,088 15;1.00 17.86%706.711.5(4.65).0.27%
ACCUMULATED DEPRECIA nON
Underground S.onge 294 047 247 12.07%39.41.18 5 (2.13)5.17%
Dielribution PIon.26,397 658 739 34.28%449.395.553.13.62%
Goneral Plonl 702 316 386 16.67%45.46.59 5(.60)1.29%
ToIai A=. Doprcci.tion 31,393 24,021 7,372 30.69%534.483.551.13 10.58%
DEFERRED AT (7,192)603)(2,589)56.25%(122.41)(92.59)5 (29.82)32.21%
GAS INVENTORY 1,572 503 069 212.52%26.10.516.164.43%
GAIN ON SALE OF BUILDING (197)(268)26.49%(3.35)(5.39)$2.37.85%
TOTAL RATE BASE $63,078 556.699 $6.379 11.25%073.51.140.5 (66.92)87%
Exhibit No. 15, Page 8 of 8
D, Falkner
Avisla Corporation