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Home My WebLink About20150601Schuh Exhibit 11.pdf DAVID J. MEYER VICE PRESIDENT AND CHIEF COUNSEL FOR REGULATORY & GOVERNMENTAL AFFAIRS AVISTA CORPORATION P.O. BOX 3727 1411 EAST MISSION AVENUE SPOKANE, WASHINGTON 99220-3727 TELEPHONE: (509) 495-4316 FACSIMILE: (509) 495-8851 DAVID.MEYER@AVISTACORP.COM BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) CASE NO. AVU-E-15-05 OF AVISTA CORPORATION FOR THE ) CASE NO. AVU-G-15-01 AUTHORITY TO INCREASE ITS RATES ) AND CHARGES FOR ELECTRIC AND ) NATURAL GAS SERVICE TO ELECTRIC ) EXHIBIT NO. 11 AND NATURAL GAS CUSTOMERS IN THE ) STATE OF IDAHO ) KAREN K. SCHUH ) FOR AVISTA CORPORATION (ELECTRIC AND NATURAL GAS) Capital Expenditures $376$400 $296 $352 $350 $350 $350 $350 $300 $350 $198 $205 $200 $207 $247 $262 $200 $250 mil l i o n s ) $132 $158 $100 $150 (i n $0 $50 2005** 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Electric T&D Other ET Growth Generation Gas Environmental 230 kV Project Planned ** 2005 excludes 57.5 for the urchase of the second half of Co ote S rin s 2 and 17.8 for the office buildin urchase. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 1, Page 1 of 1 Handy Whitman Cost Index (Published May 2013) $90.00 $100.00 Transm ss on Su stat ons $70.00 $80.00 $50.00 $60.00 $30.00 $40.00 $10.00 $20.00 $0.00 1960 1970 1980 1990 2000 2010 2012 Structures & Improvements (FERC Acct. 352)Station Equip. (FERC Acct. 353) Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 2, Page 1 of 4 $105 00 Handy Whitman Cost Index (Published in May 2013) Transmission Equipment ‐Accts 354, 355 & 356 $85.00 $105. $65.00 $45.00 $25.00 $5.00 1960 1970 1980 1990 2000 2010 2012 ($15.00) Towers & Fixtures (FERC Acct. 354)Poles & Fixtures (FERC Acct. 355)OH Conductors (FERC Acct. 356) Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 2, Page 2 of 4 Handy Whitman Cost Index (Published in May 2013) Distribution Substations $90.00 $100.00 $70.00 $80.00 $50.00 $60.00 $30.00 $40.00 $10.00 $20.00 $0.00 1960 1970 1980 1990 2000 2010 2012 Structures & Improvements (FERC Acct. 361)Station Equip. (FERC Acct. 362) Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 2, Page 3 of 4 $60.00 $80.00 $100.00 Handy Whitman Cost Index (Published in May 2013) Distribution Equipment ‐Accts 364, 365 & 368 $0.00 $20.00 $40.00 1960 1970 1980 1990 2000 2010 2012 Poles (FERC Acct. 364)OH Conductors (FERC Acct. 365)OH Line Transformers (FERC Acct. 368) Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 2, Page 4 of 4 Avista 2015 Capital Additions Detail (System) (Transfers toPlant) Exhibit No. 11 (K. Schuh, Avista) Schedule No. 4, Page #$ (000's) Generation / Production: 7 Hydro - Base Load Hydr $ 1,974 12 Hydro - Clark Fork Settlement Agreemen 13,988 17 Hydro - Generation Battery Replacemen 434 20 Hydro - Hydro Safety Minor Blanke 151 24 Hydro - Little Falls Plant Upgrad 14,300 27 Hydro - Nine Mile Reha 56,567 31 Hydro - Regulating Hydr 5,186 34 Hydro - Spokane River License Implementation 1,266 39 Other - Base Load Thermal Plant 2,200 42 Other - Peaking Generatio 501 47 Kettle Falls Water Suppl 1,529 50 Thermal - Colstrip Thermal Capital 2,497 58 Hydro - Noxon Spare Coils 1,350 61 Hydro - Post Falls South Channel Replacemen 9,309 64 Hydro - Cabinet Gorge Unit 1 Refurbishmen 11,687 $ 122,939 General: 77 Capital Tools & Stores Equipment $ 2,348 80 COF Long-Term Restructuring Plan 7,500 83 Structures and Improvements/Furniture 6,030 86 Apprentice Training 12189 HVAC Renovation Project 9,520 92 COF Long-term Restructure Ph2 2,723 95 Sandpoint Renovation 500 $ 28,742 Natural Gas Distribution: 102 Aldyl A Replacement $ 16,817 106 Cathodic Protection 1,292 109 Gas Non-Revenue Program 7,592 112 Gas Reinforcement 1,000 115 Gas Replacement Street & Highway 5,035 118 Gas Telemetry 416 121 Isolated Steel Replacement 3,458 124 Overbuilt Pipe Replacement 900 127 Regulator Station Reliability Replacement 812 130 Replace Deteriorating Steel Gas Systems 1,000 138 Gas PMC Program - Capital Replacements 1,030 144 Chase Road Gate Station 5,987 147 ERTs Replacement Program 402 $ 45,741 Gas Underground Storage: 150 Jackson Prairie Storage $ 1,356 $ 1,356 Transportation: 153 Fleet Budget $ 10,184 $ 10,184 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 1 of 295 Avista 2015 Capital Additions Detail (System) (Transfers toPlant) Exhibit No. 11 (K. Schuh, Avista) Schedule No. 4, Page #$ (000's) Enterprise Technology: 158 AvistaUtilities.com and AvaNet Redesign $ 5,145 161 Enterprise Business Continuity Plan 1,043 164 Mobility in the Field 420 167 Technology Refresh to Sustain Business Process 21,379 170 Customer Information and Work & Asset Management System 96,685 171 Enterprise Security 5,400 174 Technology Expansion to Enable Business Process 7,431 180 High Voltage Protection Upgrade 1,252 183 Next Generation Radio Refresh 4,007 186 Microwave Refresh 2,755 $ 145,517 Electric Transmission / Distribution: Transmission Distribution Total Transmission & Distribution 190 Colstrip Transmission/PNACI $ 491 $ - $ 491 195 Distribution Grid Modernization 14,081 14,081 200 Distribution Line Protection 125 125 203 Distribution Minor Rebuild 8,300 8,300206 Distribution Transformer Change-Out Program 4,700 4,700 209 Distribution Wood Pole Management 11,000 11,000 214 Meter Minor Blanket 5,806 5,806 218 Electric Replacement/Relocation 2,403 2,403 221 Environmental Compliance 434 150 584 225 Primary URD Cable Replacement 1,000 1,000 228 Reconductors and Rebuilds 11,776 2,892 14,668 231 Segment Reconductor and FDR Tie Program 3,894 3,894 234 Lewiston Mill Rd. 115 kV Substation 684 684 237 Storms 1,000 2,000 3,000 240 Substation - 115 kV Line Relay Upgrades 1,230 1,230 243 Substation - Asset Mgmt. Capital Maintenance 1,647 2,679 4,326 246 Substation - Capital Spares 3,250 1,200 4,450 249 Substation - Distribution Station Rebuilds 250 2,297 2,547 252 Substation - New Distribution Stations 1,995 1,995 255 Tribal Permits and Settlements 1,430 1,430 258 Worst Feeders 2,435 2,435 261 Spokane Valley Transmission Reinforcement 3,468 3,468 264 Clearwater Sub Upgrades 500 500 267 Street Light Management 1,500 1,500 272 Noxon Switchyard Rebuild 9,906 9,906 275 Transmission - Asset Management 1,813 1,813 278 Transmission - NERC Low Priority Mitigation 500 500 281 Transmission - NERC Medium Priority Mitigation 3,306 3,306 284 SCADA - SOO & BUCC 1,061 1,061 $ 42,746 $ 68,457 $ 111,203 Total Non-Revenue Capital $ 465,682 Growth/Revenue - Producing $ 33,279 Total Washington/Oregon Direct Capital Additions 2015 $ 21,067 Total Ca ital Additions in 2015 $ 520,028 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 2 of 295 Avista 2016 Capital Additions Detail (System) (Transfers to Plant) Exhibit No. 11 (K. Schuh, Avista) Schedule No. 4, Page #$ (000's) Generation / Production: 7 Hydro - Base Load Hydro $ 1,149 12 Hydro - Clark Fork Settlement Agreement 6,054 17 Hydro - Generation Battery Replacement 250 20 Hydro - Hydro Safety Minor Blanket 75 24 Hydro - Little Falls Plant Upgrade 9,000 27 Hydro - Nine Mile Rehab 9,871 31 Hydro - Regulating Hydro 3,533 34 Hydro - Spokane River License Implementation 397 39 Other - Base Load Thermal Plant 2,20042 Other - Peaking Generation 500 50 Thermal - Colstrip Thermal Capital 10,480 55 Other - Coyote Springs LTSA 2,000 $ 45,509 General:77 Capital Tools & Stores Equipment $ 2,400 80 COF Long-Term Restructuring Plan 4,000 83 Structures and Improvements/Furniture 3,600 86 Apprentice Training 60 $ 10,060 Natural Gas Distribution: 102 Aldyl A Replacement $ 17,385 106 Cathodic Protection 1,000 109 Gas Non-Revenue Program 8,595 112 Gas Reinforcement 1,000 115 Gas Replacement Street & Highway 4,500 118 Gas Telemetry 400 121 Isolated Steel Replacement 3,550 124 Overbuilt Pipe Replacement 900 127 Regulator Station Reliability Replacement 800 130 Replace Deteriorating Steel Gas Systems 1,000 133 Gas HP Pipeline Remediation Program 3,000 138 Gas PMC Program - Capital Replacements 1,061 141 Gas Rathdrum Prairie HP Main Reinforcement 5,000 147 ERTs Replacement Program 444 $ 48,635 Gas Underground Storage: 150 Jackson Prairie Storage $ 1,175 $ 1,175 Transportation: 153 Fleet Budget $ 7,700 $ 7,700 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 3 of 295 Avista 2016 Capital Additions Detail (System) (Transfers to Plant) Exhibit No. 11 (K. Schuh, Avista) Schedule No. 4, Page #$ (000's) Enterprise Technology: 158 AvistaUtilities.com Redesign $ 2,000 161 Enterprise Business Continuity Plan 450 164 Mobility in the Field 320 167 Technology Refresh to Sustain Business Process 16,095 171 Enterprise Security 3,200 174 Technology Expansion to Enable Business Process 5,552 180 High Voltage Protection Upgrade 415 186 Microwave Refresh 3,050 $ 31,082 Electric Transmission / Distribution: Transmission Distribution Total Transmission & Distribution 190 Colstrip Transmission/PNACI $ 497 $ - $ 497 195 Distribution Grid Modernization 11,000 11,000 200 Distribution Line Protection 125 125 203 Distribution Minor Rebuild 8,300 8,300206 Distribution Transformer Change-Out Program 4,700 4,700 209 Distribution Wood Pole Management 11,000 11,000214 Meter Minor Blanket 5,806 5,806 218 Electric Replacement/Relocation 2,500 2,500 221 Environmental Compliance 350 150 500 228 Reconductors and Rebuilds 21,161 2,500 23,661 231 Segment Reconductor and FDR Tie Program 3,809 3,809 237 Storms 890 1,900 2,790 243 Substation - Asset Mgmt. Capital Maintenance 3,300 1,519 4,819 246 Substation - Capital Spares 4,915 1,200 6,115 249 Substation - Distribution Station Rebuilds 3,565 2,284 5,849 252 Substation - New Distribution Stations 75 75 255 Tribal Permits and Settlements 316 316 258 Worst Feeders 2,000 2,000 261 Spokane Valley Transmission Reinforcement 7,440 7,440 264 Clearwater Sub Upgrades 500 500 267 Street Light Management 1,500 1,500 272 Noxon Switchyard Rebuild 500 500 275 Transmission - Asset Management 1,772 1,772 278 Transmission - NERC Low Priority Mitigation 2,000 2,000 281 Transmission - NERC Medium Priority Mitigation 2,251 2,251 284 SCADA - SOO & BUCC 1,002 1,002 289 South Region Voltage Control 4,900 4,900 292 Westside Rebuild Phase One 1,780 1,780 $ 57,139 $ 60,368 $ 117,507 Total Non-Revenue Capital $ 261,668 Growth/Revenue - Producing $ 33,334 Total Washington/Oregon Direct Capital Additions 2016 $ 45,195 Total Capital Additions in 2016 $ 340,197 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 4 of 295 Avista 2017 Capital Additions Detail (System) (Transfers to Plant) Exhibit No. 11 (K. Schuh, Avista) Schedule No. 4, Page #$ (000's) Generation / Production: 7 Hydro - Base Load Hydr $ 1,149 12 Hydro - Clark Fork Settlement Agreemen 22,836 17 Hydro - Generation Battery Replacemen 250 20 Hydro - Hydro Safety Minor Blanke 80 24 Hydro - Little Falls Plant Upgrad 10,000 27 Hydro - Nine Mile Reha 858 31 Hydro - Regulating Hydr 3,533 34 Hydro - Spokane River License Implementation 17,018 39 Other - Base Load Thermal Plant 2,201 42 Other - Peaking Generation 500 50 Thermal - Colstrip Thermal Capital 9,61755 Other - Coyote Springs LTSA 730 67 Cabinet Gorge Automation Replacement 2,842 70 Kettle Falls Stator Rewind 7,930 74 Long Lake Replace Field Windings 4,172 $ 83,716 General: 77 Capital Tools & Stores Equipment $ 2,40083 Structures and Improvements/Furniture 3,600 86 Apprentice Training 6092 COF Long-term Restructure Ph2 5,000 99 New Airport Hangar 1,500 $ 12,560 Natural Gas Distribution: 102 Aldyl A Replacement $ 18,263 106 Cathodic Protection 1,250 109 Gas Non-Revenue Program 8,680 112 Gas Reinforcement 800 115 Gas Replacement Street & Highway 4,500 118 Gas Telemetry 400 121 Isolated Steel Replacement 3,320 124 Overbuilt Pipe Replacement 900 127 Regulator Station Reliability Replacement 800 130 Replace Deteriorating Steel Gas Systems 1,000 133 Gas HP Pipeline Remediation Program 3,000 138 Gas PMC Program - Capital Replacements 1,093 141 Rathdrum Prairie HP Gas Reinforcement 5,000 147 ERTs Replacement Program 494 $ 49,500 Gas Underground Storage: 150 Jackson Prairie Storage $ 1,356 $ 1,356 Transportation: 153 Fleet Budget $ 7,700 $ 7,700 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 5 of 295 Avista 2017 Capital Additions Detail (System) (Transfers to Plant) Exhibit No. 11 (K. Schuh, Avista) Schedule No. 4, Page #$ (000's) Enterprise Technology: 161 Enterprise Business Continuity Plan $ 450 167 Technology Refresh to Sustain Business Process 16,095 171 Enterprise Security 3,200 174 Technology Expansion to Enable Business Process 5,799 186 Microwave Refresh 3,050 177 AFM COTS Migration 15,608 $ 44,202 Electric Transmission / Distribution: Transmission Distribution Total Transmission & Distribution 190 Colstrip Transmission/PNACI $ 516 $ - $ 516195 Distribution Grid Modernization 13,000 13,000 200 Distribution Line Protection 125 125203 Distribution Minor Rebuild 8,300 8,300 206 Distribution Transformer Change-Out Program 1,100 1,100 209 Distribution Wood Pole Management 12,000 12,000 214 Meter Minor Blanket 4,977 4,977 218 Electric Replacement/Relocation 2,600 2,600 221 Environmental Compliance 350 350 228 Reconductors and Rebuilds 18,327 2,500 20,827 231 Segment Reconductor and FDR Tie Program 4,175 4,175 237 Storms 883 2,000 2,883 243 Substation - Asset Mgmt. Capital Maintenance 3,300 1,551 4,851 246 Substation - Capital Spares 1,200 800 2,000 249 Substation - Distribution Station Rebuilds 2,865 3,315 6,180 252 Substation - New Distribution Stations 2,323 2,323 255 Tribal Permits and Settlements 297 297 258 Worst Feeders 2,000 2,000 267 Street Light Management 1,500 1,500 272 Noxon Switchyard Rebuild 7,700 7,700 275 Transmission - Asset Management 1,780 1,780 278 Transmission - NERC Low Priority Mitigation 3,000 3,000 284 SCADA - SOO & BUCC 1,044 1,044 $ 41,262 $ 62,266 $ 103,528 Total Non-Revenue Capital $ 302,562 Growth/Revenue - Producing $ 33,407 Total Washington/Oregon Direct Capital Additions 2017 $ 48,107 Total Ca ital Additions in 2017 $ 384,076 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 6 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Base Load Hydro ER No: ER Name: 4147 Base Hydro Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 3,447 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 1,974 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,149 825 2016 1,149 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,149 2017 1,149 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,149 Business Case Description: This program is to cover the capital maintenance expenditures required to keep these plants operating within 90% of their current performance. The program will focus on ways to maintain compliance while maintaining reasonable unit availability. These plants are the Upper Spokane River plants, including Post Falls, Upper Falls, Monroe Street and Nine Mile. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 7 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 8 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 9 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 10 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 11 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Clark Fork Settlement Agreement ER No: ER Name: 6100 Clark Fork License/Compliance 6103 Clark Fork Implement PME Agreement Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 40,057 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 13,988 768 864 912 977 1,010 1,028 932 911 977 1,010 1,202 3,395 2016 6,054 178 208 223 243 393 403 403 403 363 323 288 2,631 2017 22,836 100 100 115 195 195 280 280 295 295 215 110 20,656 Business Case Description: Implementation of Protection, Mitigation and Enhancement (PM&E) programs. License is issued to Avista Corporation for a period of 45 years, effective March 1, 2001, to operate and maintain the Clark Fork Project No. 2058. The License includes hundreds of specific legal requirements, many of which are reflected in License Articles 404‐430. These Articles derived from a comprehensive settlement agreement between Avista and over 20 other parties, including the States of Idaho and Montana, various federal agencies, five Native American tribes, and numerous Non Governmental Organizations. We are required to develop, in consultation with the Management Committee, a yearly work plan and report, addressing all PM&E measures of the License. In addition, implementation of these measures is intended to address ongoing compliance with Montana and Idaho Clean Water Act requirements, the Endangered Species Act (fish passage), and state, federal and tribal water quality standards as applicable. License articles also describe our operational requirements for items such as minimum flows, ramping rates and reservoir levels, as well as dam safety and public safety requirements. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 12 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 13 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 14 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 15 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 16 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Generation Battery Replacement ER No: ER Name: 4108 System Battery Replacement Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 750 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 434 ‐ ‐ 63 ‐ ‐ 63 ‐ ‐ 63 ‐ ‐ 63 184 2016 250 ‐ ‐ 63 ‐ ‐ 63 ‐ ‐ 63 ‐ ‐ 63 2017 250 ‐ ‐ 63 ‐ ‐ 63 ‐ ‐ 63 ‐ ‐ 63 Business Case Description: This program is set up around an asset management plan for the station batteries in all generating stations. This is the same as the current battery replacement item. This item will also have some minor fluctuations as the number and size of batteries in any one year can change. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 17 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 18 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 19 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Hydro Safety Minor Blanket ER No: ER Name: 6001 Hydro Generation Minor Blanket Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 225 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 151 ‐ ‐ 18 ‐ ‐ 18 ‐ ‐ 18 ‐ ‐ 18 81 2016 75 ‐ ‐ 19 ‐ ‐ 19 ‐ ‐ 19 ‐ ‐ 19 2017 80 ‐ ‐ 20 ‐ ‐ 20 ‐ ‐ 20 ‐ ‐ 20 Business Case Description: Funds periodic capital purchases and projects to ensure public safety at hydro facilities, on and off water, in context of FERC regulatory and license requirements. Hydro Public Safety measures as described in the Federal Energy Regulation Commission (FERC) publication “Guidelines for Public Safety at Hydropower Projects” and as documented in Avista’s Hydro Public Safety Plans for each of its hydro facilities. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 20 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 21 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 22 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 23 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Little Falls Plant Upgrade ER No: ER Name: 4152 Little Falls Powerhouse Redevelopment Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 27,000 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 14,300 ‐ ‐ 3,800 ‐ ‐ ‐ 10,500 ‐ ‐ ‐ ‐ ‐ 2016 9,000 ‐ ‐ ‐ 9,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 10,000 ‐ ‐ ‐ 10,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: The existing Little Falls equipment ranges in age from 60 to more than 100 years old. The Company has experienced an increase in forced outages at Little Falls over the past six years has significantly increased (from approximately 20 hours in 2004 to several hundred hours in the past three to four years) due to equipment failures on a number of different pieces of equipment. This project will replace nearly all of the old, unreliable equipment with new. This includes replacing two of the turbines, all four generators, all generator breakers, three of the four governors, all of the automatic voltage regulators, removing all four generator exciters, replacing the unit controls, changing the switchyard configuration, replacing the unit protection system, and replacing and modernizing the station service. Offsets: The attached business case shows O&M Offsets of $20,000. It was determined that these savings are related to employee labor that will be redistributed to other projects and does not result in an overall labor savings. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 24 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 25 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 26 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Nine Mile Hydroelectric Development Rehabilitation & Modernization ER No: ER Name: 4140 Nine Mile Redevelopment Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 34,502¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 56,567 ‐ ‐ ‐ ‐ 2,000 ‐ ‐ ‐ 1,000 ‐ ‐ 48,323 5,244 2016 9,871 519 79 83 76 79 1 ‐ 34 ‐ ‐ ‐ 9,000 2017 858 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 858 Business Case Description: This program is to rehabilitate and modernize the 4 unit Nine Mile Hydroelectric Development. This program includes projects to replace Units 1 and 2, which are more than 100 years old. In addition, a new warehouse will be constructed, new tail race gate system will be added, new grounding and communications will be added, a barge landing will be added, a cottage will be removed and another remodeled, a new panel room will be added, Units 3 & 4 will be overhauled and modernized, the powerhouse will be restored, a new access gates and controls will be added and other improvements will be made. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 27 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 28 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 29 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 30 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Regulating Hydro ER No: ER Name: 4148 Regulating Hydro Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 10,599 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 5,186 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,136 1,050 2016 3,533 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,533 2017 3,533 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,533 Business Case Description: This program is to cover the capital maintenance expenditures required to keep these plants operating at their current performance. The program will work to improve the reliability of these plants so that their value can be maximized in both the energy and ancillary markets. These plants are Long Lake, Little Falls, Noxon Rapids and Cabinet Gorge. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 31 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 32 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 33 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Spokane River License Implementation ER No: ER Name: 6107 Spokane River Implementation (PM&E) Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 15,477 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 1,266 39 39 39 39 39 39 39 39 39 39 39 38 805 2016 397 36 36 36 36 36 36 36 36 36 36 37 ‐ 2017 17,018 43 43 43 43 43 43 43 43 43 43 43 16,544 Business Case Description: The Spokane River Project capital projects fulfill FERC’s license requirements related to wetlands, water quality, recreation, and land use improvements that will lead to improvements located at Nine Mile, and Lake Spokane (the Long Lake Dam reservoir). The water quality improvements and wetland acquisition and/or enhancements are mandatory conditions included in the License as part of the Washington and Idaho 401 Water Quality Certifications, whereas the recreation and land use projects are FERC’s License requirements. This year we will continue modeling a number of potential total dissolved gas remedies for Long Lake Dam, and monitoring low dissolved oxygen (DO) in the tailrace below the dam to determine if the aeration equipment we installed in previous years will sufficiently meet the State’s water quality standards. We are also installing additional aeration equipment in the Long Lake Powerhouse to further improve DO in the tailrace. We completed the channel modifications at Upper Falls last fall, which were approved by the Washington Department of Ecology. We will work to complete the required Nine Mile and Lake Spokane recreation projects during this year’s construction season. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 34 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 35 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 36 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 37 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 38 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Base Load Thermal Plant ER No: ER Name: 4149 Base Load Thermal Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 6,600 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2,200 ‐ ‐ ‐ ‐ ‐ ‐ 2,200 ‐ ‐ ‐ ‐ ‐ 2016 2,200 ‐ ‐ ‐ ‐ ‐ ‐ 2,200 ‐ ‐ ‐ ‐ ‐ 2017 2,201 ‐ ‐ ‐ ‐ ‐ ‐ 2,201 ‐ ‐ ‐ ‐ ‐ Business Case Description: This program is necessary to sustain or improve the existing operating costs of Coyote Springs 2, Colstrip, and Kettle Falls. Work includes replacement of items identified through asset management decisions and programs necessary to maintain reliable and low operating costs of these plants. As this program proceeds, it is expected that forced outage rates and forced de‐rates of these facilities will decrease to a level one standard deviation less than current average. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 39 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 40 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 41 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Peaking Generation ER No: ER Name: 4150 Peaking Generation Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 1,500 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 501 ‐ ‐ ‐ ‐ ‐ ‐ 500 ‐ ‐ ‐ ‐ ‐ 1 2016 500 ‐ ‐ ‐ ‐ ‐ ‐ 500 ‐ ‐ ‐ ‐ ‐ 2017 500 ‐ ‐ ‐ ‐ ‐ ‐ 500 ‐ ‐ ‐ ‐ ‐ Business Case Description: This program is to cover the capital maintenance expenditures required to keep the gas fired peaking units (Boulder Park, Rathdrum and Northeast Combustion Turbine) operating at or above their current performance. The program will focus on maximizing ability of these units to start and run when demanded (starting reliability). Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 42 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 43 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 44 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 45 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 46 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Kettle Falls Generating Facility (“KFGS”) Water Supply ER No: ER Name: 4151 Kettle Falls Develop New River Wells Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 0 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 1,529 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,529 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: KFGS receives its water from the City of Kettle Falls from an agreement that dates back to the construction of the plant in the early 1980's. That agreement will expire next year and future rates will be higher, affecting the costs of the plant. This effort is to secure necessary water rights and a long‐term water supply for the plant that is controlled by the Company. Offsets: From the time the plant went into service, water supply for the plant has come from the City of Kettle Falls. When completed, this project will allow us to move off the City water system as we will have our own water supply. This will reduce the amount we pay for water, resulting in an offset. We estimate that the net savings in 2015 will be $19,000 on a total system basis, with $6,705 allocated to Idaho. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. AVISTA UTILITIES Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 47 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 48 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 49 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Colstrip Thermal Capital ER No: ER Name: 4116 Colstrip Capital Additions Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 22,594 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2,497 40 40 60 70 80 120 120 110 110 90 80 1,580 2016 10,480 352 352 529 617 2,373 1,057 1,057 969 969 793 705 705 2017 9,617 385 385 577 673 769 1,154 1,154 1,058 1,058 866 769 769 Business Case Description: This program is for ongoing capital expenditures associated with normal outage activities on Units 3 & 4 at Colstrip. Every 2 out of 3 years we have outages at Colstrip with higher capital program activities. For non‐outage years, the program activities are reduced. Avista votes its 15% share of Unit's 3 & 4 and its approximate 10% share of common facilities to approve or disapprove of the budget proposed by PPLM on behalf of all the owners. Individual projects are reviewed for appropriate rates of return and necessity. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 50 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 51 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 52 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 53 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 54 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Coyote Springs Long‐Term Service Agreement (“LTSA”) ER No: ER Name: 4143 CS2 LTSA Cash Accrual 4142 CS2 LTSA Cash Add Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 2,200 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2016 2,000 ‐ ‐ 500 ‐ ‐ 500 ‐ ‐ 500 ‐ ‐ 500 2017 730 ‐ ‐ 183 ‐ ‐ 183 ‐ ‐ 183 ‐ ‐ 183 Business Case Description: This program is to cover the capital accruals required to execute our Long‐Term Service Agreement (LTSA) with General Electric for Coyote Springs Unit 2. This is the same as the current LTSA item. This program will have fluctuations in expenditure to account for the variable operating hours and operating conditions that feed into the LTSA formula. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 55 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 56 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 57 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Hydro – Noxon Spare Coils ER No: ER Name: 4166 Noxon Rapids HED Spare Coils Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 660 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 1,350 ‐ ‐ ‐ ‐ 1,350 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: This project is to replace the spare coils that were used last spring to repair the stator winding that failed for Unit 4. This item will procure 100 spare coils. These spares cover Units 1 through 4 (Unit 5 is different). Because we had spares on hand, we were able to return Unit 4 to normal service within 11 weeks. Without these spares, the unit would have been out for 9 months or more. Prices for coils supplied under emergency conditions would likely carry a 30% premium. This project does not include any installation, only replacing stock that we had previously. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 58 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 59 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 60 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Post Falls South Channel Gate Replacement ER No: ER Name: 4162 PF S Channel Gate Replacement Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 1,570 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 9,309 ‐ ‐ ‐ ‐ 11,008 ‐ ‐ ‐ ‐ ‐ ‐ ‐ (1,699) 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: Avista had planned to maintain the south channel gates to comply with FERC Dam Safety directives. When a pre‐construction underwater investigation was done, it was discovered that the condition of the concrete structure was very poor and would not handle the planned work. This project includes an engineering investigation into options and project estimates. It is anticipated that much of the existing concrete structure will be removed and replaced with a new concrete structure, new gates and hoist systems to automate the operation. Offsets: The attached business case shows O&M Offsets of $5,000 in 2015. After further discussion, it was determined that these savings are related to employee labor that will be redistributed to other projects and do not result in a reduction to overall labor expense. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 61 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 62 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 63 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Cabinet Gorge Unit 1 Refurbishment ER No: ER Name: 4161 CG HED U#1 Refurbishment Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 4,900 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 11,687 ‐ ‐ ‐ ‐ ‐ 11,400 ‐ ‐ ‐ ‐ ‐ ‐ 287 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: This is the Capital portion of a major overhaul project planned for Cabinet Gorge Unit 1. The runner hub has significant issues, and will need to be upgraded to allow for frequent cycling with integration of intermittent resources. The present automatic voltage regulator has relatively slow response due to its hybrid design. It also has no limiters for generator protection. A new system will improve both of these. The machine monitoring will allow for better analysis of the machine condition for this critical unit. New protective relays will be installed and new controls will be integrated with the project to replace the failing Bailey NET90 system. Rehab of this unit will also allow flexibility around minimum flow for fish habitat. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 64 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 65 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 66 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Cabinet Gorge Automation Replacement ER No: ER Name: 4163 CG HED Automation Replacement Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 2,842 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 2,842 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,842 Business Case Description: This project is to replace the unit and station service control equipment at Cabinet Gorge with a system compatible with Avista’s current standards. The Bailey Net 90 equipment that is installed currently is obsolete because replacement of the system can only be done through secondary and salvage markets. In addition, the current system does not provide enough inputs and outputs that allow implementation of standard unit control and monitoring schemes. This work will replace the existing panel and control systems with a new system. The scope of work has expanded to include replacement governors, voltage regulators, and protective relays. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 67 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 68 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 69 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Kettle Falls Stator Rewind ER No: ER Name: 4172 Kettle Falls Stator Rewind Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 7,930 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 7,930 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 7,930 ‐ ‐ ‐ Business Case Description: The Kettle Falls generator is over 32 years old and is at the end of its expected life. This project consists of monitoring the existing machine, developing rewind contract, manufacturing replacement coils, disassembly, coil removal, new coil installation, reassembly, startup, testing and commissioning. Consequences of failure include an unscheduled outage with lost generation, loss of renewable energy credits, long term interruption of fuel supply, collateral damage to core and hydrogen cooling with resulting safety hazards. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 70 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 71 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 72 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 73 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Generation / Production Business Case Name: Long Lake Replace Field Windings ER No: ER Name: 4169 Long Lake HED Replace Field Windings Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 3,400 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 4,172 ‐ 4,172 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: Over the past 10 years, the Company has observed a continuing decline in the insulation level on the generators at Long Lake as measured using Megger test instruments. Long Lake has experienced an increasing amount of forced outages and down time due to the deteriorating condition of these units. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 74 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 75 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 76 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: General Business Case Name: Capital Tools & Stores Equipment ER No: ER Name: 7005 Stores Equip 7006 Tools Lab & Shop Equipment Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $7,148¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2,348 337 337 337 54 54 54 54 54 54 337 337 337 2016 2,400 344 344 344 56 56 56 56 56 56 344 344 344 2017 2,400 344 344 344 56 56 56 56 56 56 344 344 344 Business Case Description: This business case is for the purchase and repair of tool and facility material handling equipment. This includes equipment such as forklifts, manlifts, shelving, cutting/binding machines, etc. These funds are used for capital Stores equipment company‐wide. The ER’s included in this business case are blanket projects that occur year over year. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 77 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 78 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 79 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: General Business Case Name: Central Operating Facility (Mission Campus) Long‐Term Restructuring Plan ER No: ER Name: 7126 Long term Campus Re‐Structuring Plan Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $11,500¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 7,500 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 8,500 (1,000) 2016 4,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,000 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: Construct a new warehouse in 2012 and remodel the old warehouse in the Service Bldg to accommodate 110 work stations in 2013. The project also adds 125 employee parking spaces. The new warehouse shall utilize current material handling technologies to increase employee efficiencies, and its height will allow more material to be stored per square foot, thus allowing the Company to use limited square space more efficiently. The facility will provide IS/IT infrastructure and networking in north half of the Mission campus where it is currently non‐existent, in anticipation of future projects. This project will also allow the HVAC renovation of the north‐building wing to be accomplished in one year rather than a staged process, which results in a one‐time $1.2M reduction in capital costs for that project. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 80 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 81 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 82 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: General Business Case Name: Structures and Improvements/Furniture ER No: ER Name: 7001 Structures & Improvements 7003 Office Furniture Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $11,800¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 6,030 390 383 381 382 383 381 391 381 381 383 383 381 1,430 2016 3,600 307 299 298 299 300 298 307 297 298 299 300 297 2017 3,600 307 299 298 299 300 298 307 297 298 299 300 297 Business Case Description: This program is for the Capital Maintenance, Improvements, and Furniture budgets at 50 plus Avista offices and service centers (over 700,000 square feet in total). Many of the included service centers were built in the 1950's and 1960's and are starting to show signs of severe aging. The program includes capital projects in all construction disciplines (Roofing, Asphalt, Electrical, Plumbing, HVAC, Energy efficiency projects etc.). This program is driven mainly from the results of an objective building survey completed at each service center. The survey assigns a rating to each building category based on condition. This will help us create capital project lists for each service center and make decisions on continued maintenance vs. future replacement. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 83 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 84 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 85 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: General Business Case Name: Apprentice & Craft Training ER No: ER Name: 7200 Apprentice Craft Train Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $180¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 121 5 5 5 5 5 5 5 5 5 5 5 5 61 2016 60 5 5 5 5 5 5 5 5 5 5 5 5 2017 60 5 5 5 5 5 5 5 5 5 5 5 5 Business Case Description: This program is for on‐going capital improvements to support the essential skills needed for journeyman workers, apprentices and pre‐apprentices now and for the future. It is important to provide the types of training scenarios that employees face in the field. Capital expenditures under this program include items such as building new facilities or expanding existing facilities, purchase of equipment needed, or build out of realistic utility field infrastructure used to train employees. Examples include: new or expanded shops, truck canopies, classrooms, backhoes and other equipment, build out of “Safe City” located at the Company’s Jack Stewart training facility in Spokane, which could include commercial and residential building replicas, and distribution, transmission, smart grid, metering, gas and substation infrastructure. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 86 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 87 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 88 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: General Business Case Name: HVAC Renovation Project at Mission Campus Headquarters ER No: ER Name: 7101 COF HVAC Improvement Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $5,750¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 9,520 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9,250 270 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: The HVAC Renovation Project began in 2007 and 2008. The HVAC Project is a systematic replacement of the original 1956 Heating, Ventilation and Air Conditioning System for the Service Building, Cafeteria/ Auditorium and General Office Building. The original HVAC equipment has been operating 24/7 since original construction in 1956. The Project entails a floor by floor evacuation and relocation of employees and a complete demolition of each floor; including a massive Asbestos Abatement component, and removing the original fire proofing on the basic steel structure. The Project requires exhaustive demolition and reconstruction of each floor. Sustainable energy savings and conservation are built into the Project as we apply for LEED certification for each floor. The 5th, 4th, and 3rd floor has obtained LEED‐CI Gold status recognizing all of the renewable strategies we employed during the design and construction phases. The goal of this project is to re‐purpose and recycle the entire Facility for the next generation of Avista employees to use for 50 more years. Life cycle costs weighed heavily on our Construction Specifications and equipment choices during the design phase. The design team chose energy efficient equipment that was designed for 30 to 50 year life cycles. Offsets: The attached business case does not show reductions in O&M costs. However, after further discussion it was determined that offsets do exist for the HVAC Renovation Project. This project will result in a reduction to energy costs of $66,000 in 2015 and an incremental reduction to energy costs of $10,000 in 2016. Th e allocations to Idaho are $21,190 Electric / $3,830 Gas in 2015 and additional reduced energy costs of $3,210 ID Electric / $580 Gas in 2016. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 89 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 90 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 91 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: General Business Case Name: Central Office Facility – Mission Campus (“COF”) Long‐term Restriction Phase 2 ER No: ER Name: 7131 COF Long Term Restructuring Plan Phase 2 Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $14,000¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 2,723 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,000 723 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 5,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,000 Business Case Description: COF Long Term Restructuring Plan, Phase 2. This project involves the construction of a new Fleet Vehicle Garage and 4‐story parking structure. By the end of 2015, Facilities projects will add approx. 183 new cubicles. Our parking lots will be beyond max capacity. The Fleet Garage is over 50 yrs old and is constrained. New garage will allow for maintenance of Compressed Natural Gas vehicles as the current bldg does not allow for this. Once Fleet is relocated there will be a distinct separation between operational/service vehicles and employee vehicle. This separation will increase safety by eliminating intermingling of pedestrians in work areas. Office building & parking garage is projected to allow Call Center and any leased facilities to come back to Mission campus. Ross Park conversion to office will secure any future employee expansion that will occur. Offsets: There are no offsets presented on the attached Business Case, however we anticipate increases in O&M costs in both 2015 and 2016 related to this project, as a result of the need for additional parking at our Mission Campus. We have included an increase in O&M costs of $11,000 in 2015 and an incremental increase in O&M costs of $11,000 in 2016 (a total of $22,000). The allocation of these costs to Idaho in each year is $3,530 Electric and $640 Gas ($7,060 Electric and $1,280 Gas, total). ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 92 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 93 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 94 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: General Business Case Name: Sandpoint Renovation ER No: ER Name: 7137 Sandpoint Service Center Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 500 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 500 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 500 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: This project will prepare the Sandpoint service center, which was originally built in the mid‐1900s, for the next 50 years of service by redesigning and modernizing the building. The renovation will include the construction of a new linedock facility, covered storage buildings to protect equipment, modernization of office spaces and meeting rooms, and the construction of a small warehouse. This project will address current long‐standing material and equipment storage issues and will result in increased efficiency of Avista’s operations in the service area. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 95 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 96 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 97 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 98 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: General Business Case Name: New Airport Hangar ER No: ER Name: 7136 New Airport Hangar Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 1,500 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 1,500 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,500 Business Case Description: Avista’s existing airport hangar will no longer be available to Avista in 2017, as the owner’s lease will expire and the hangar will be demolished. This project will address the need for a hangar to secure the corporate airplane. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 99 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 100 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 101 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Aldyl A Replacement ER No: ER Name: 3008 Aldyl ‐A Pipe Replacement Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 52,466 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 16,817 967 906 1,043 1,197 1,497 1,485 1,409 1,625 1,630 1,642 1,203 2,213 2016 17,385 1,000 937 1,078 1,238 1,548 1,535 1,456 1,680 1,685 1,697 1,244 2,288 2017 18,263 1,044 981 1,131 1,299 1,627 1,614 1,527 1,768 1,772 1,785 1,305 2,410 Business Case Description: This program covers the replacement of 730 miles of pre‐1987 Aldyl A mains and the remediation of 16,000 bending stress sites on services tapped from steel main. Due to the tendency for this material to suffer brittle‐like cracking leak failures, Aldyl A will eventually reach a level of unreliability that is not acceptable. Please also see Company witness Labolle for further details regarding this program. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 102 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 103 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 104 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 105 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Cathodic Protection ER No: ER Name: 3004 Cathodic Protection‐Minor Blanket Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 3,200 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 1,292 44 43 58 67 80 102 100 100 100 89 73 97 342 2016 1,000 47 45 61 70 84 106 104 105 105 94 76 104 2017 1,250 57 56 76 88 105 135 132 132 132 117 96 127 Business Case Description: This program will replace existing and install new cathodic protection systems to ensure compliance with 49 CFR 192, Subpart I ‐ "Requirements for Corrosion Control" that requires pipelines be protected against external corrosion by means of a cathodic protection system. This program will ensure appropriate cathodic protection levels are maintained, reduce corrosion related failures, help prevent leaks within steel pipeline systems and enhance public safety. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 106 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 107 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 108 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Gas Non‐Revenue Program ER No: ER Name: 3005 Gas Distribution Non‐Revenue Blanket Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 18,000 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 5,928 417 369 403 445 517 530 555 550 553 551 456 654 (72) 2016 6,000 424 373 405 446 517 525 553 546 549 551 456 655 2017 6,000 425 373 405 446 517 525 554 545 549 550 456 654 Business Case Description: This annual program will replace sections of existing natural gas piping that require replacement to improve the operation of the gas system but are not directly linked to new revenue. The program includes replacement of pipe and facilities that are at the end of their useful life or have failed. It includes improvements in equipment and/or technology to enhance system operation and/or maintenance, replacement of obsolete facilities, replacement of main to improve cathodic performance, and projects to improve public safety and/or improve system reliability. Starting in 2014, costs associated with the labor and minor materials to complete the Planned Meter Change‐out (“PMC”) program will no longer be captured in this Business Case, they will be on the "Gas PMC Program". Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 109 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 110 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 111 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Gas Reinforcement ER No: ER Name: 3000 Gas Reinforce‐Minor Blanket Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 2,800 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 1,000 68 56 66 74 81 103 116 95 96 87 81 77 2016 1,000 68 56 66 74 81 103 116 95 96 87 81 77 2017 800 60 48 54 60 65 79 92 73 74 69 65 61 Business Case Description: This annual program will provide for necessary reinforcements and reliability looping of the existing gas distribution system in WA, ID, and OR. Avista has an obligation to provide reliable service that is of adequate pressure and capacity. Periodic reinforcement of the system is required to reliably serve due to increased demand at existing service locations and new customers. Execution of this program on an annual basis will ensure the continuation of reliable gas service that is of adequate pressure and capacity. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 112 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 113 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 114 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Gas Replacement Street & Highway ER No: ER Name: 3003 Gas Replace‐St&Hwy 3302 HWY 62 ‐ HP & IP Main Relocation & SSFT #1316 Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 13,500 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 5,035 266 244 283 322 395 408 401 434 436 431 329 552 535 2016 4,500 266 244 283 322 395 408 401 434 436 431 329 552 2017 4,500 266 244 283 322 395 408 401 434 436 431 329 552 Business Case Description: This annual program will replace sections of existing gas piping that require replacement due to relocation or improvement of streets or highways in areas where natural gas piping is installed. Avista installs many of its facilities in public right‐of‐way under established franchise agreements. Avista is required under the franchise agreements, in most cases, to relocate its facilities when they are in conflict with road or highway improvements. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 115 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 116 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 117 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Gas Telemetry Deployment ER No: ER Name: 3117 Gas Telemetry Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 1,200 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 416 32 26 27 30 34 33 38 35 35 36 30 43 16 2016 400 32 26 27 30 34 33 38 35 35 36 30 43 2017 400 32 26 27 30 34 33 38 35 35 36 30 43 Business Case Description: This program will continue the installations of gas telemetry throughout Avista's natural gas service territory. Further enhancing the telemetry sites will increase the visibility of the gas system to help analyze operational concerns and cold weather performance. This program will also replace the current mechanical pressure recording charts with electronic pressure recording devices. These types of projects also enhance our disaster recovery efforts by updating existing telemetry and adding new sites. Gas Scheduling benefits from this data also by having independent measurement points to check the pipelines values and to receive more timely information from the field. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 118 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 119 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 120 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Isolated Steel Replacement ER No: ER Name: 3007 Isolated Steel Replacement Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 10,320 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 3,458 245 210 227 253 301 294 313 312 315 322 256 401 8 2016 3,550 250 215 233 260 310 303 321 322 325 332 263 415 2017 3,320 207 187 210 239 293 290 286 314 315 319 241 419 Business Case Description: This annual program will replace sections of cathodically isolated steel pipe. Isolated portions of pipe including risers, service pipe and main will be replaced as required to meet the requirements of 49 CFR 192.455 & 157 and in accordance with WUTC Docket PG‐100049. This program will be conducted in ID and OR also to assure cathodically isolated steel is identified and replaced as needed. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 121 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 122 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 123 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Overbuilt Pipe Replacement ER No: ER Name: 3006 Overbuilt Pipe Replacement Blanket Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 2,700 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 900 83 73 72 73 75 73 84 72 73 75 74 73 2016 900 83 73 72 73 75 73 84 72 73 75 74 73 2017 900 83 73 72 73 75 73 84 72 73 75 74 73 Business Case Description: This program will replace sections of existing natural gas distribution piping that has either experienced encroachment or have been built over/covered by customer‐constructed improvements (i.e. decks, driveways, etc.). These types of situations restrict the Company’s access to pipe. The project will address the replacement of sections of gas main and services that no longer can be operated safely. The replacements will be completed to enhance public safety. All types of overbuilds will be addressed with the primary focus of the project being overbuilds in manufactured/mobile home developments. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 124 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 125 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 126 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Regulator Station Reliability Replacement ER No: ER Name: 3002 Regulator Reliable ‐ Blanket Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 2,400 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 812 45 39 51 58 64 88 94 81 82 70 64 63 12 2016 800 45 39 51 58 64 88 94 81 82 70 64 63 2017 800 45 39 51 58 64 88 94 81 82 70 64 63 Business Case Description: This annual project upgraded or replaced various regulator stations within the natural gas distribution system, improving station reliability and reducing operation and maintenance costs. Existing stations required upgrades due to many factors, such as replacement of obsolete equipment and improvement in regulation technology. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 127 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 128 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 129 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Replace Deteriorating Steel Gas Systems ER No: ER Name: 3001 Replace Deteriorating Gas System Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 3,000 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 1,000 40 40 60 70 80 120 120 110 110 90 80 80 2016 1,000 40 40 60 70 80 120 120 110 110 90 80 80 2017 1,000 40 40 60 70 80 120 120 110 110 90 80 80 Business Case Description: This annual program will replace sections of existing steel gas piping that are suspect for failure or are showing signs of deterioration within the gas system. This program will address the replacement of sections of gas main with corrosion related issues that no longer operate reliably and/or safely. Sections of the gas system require replacement due to many factors including material failures, environmental impact, increased leak frequency, or coating problems. This program will identify and replace sections of steel pipe to improve public safety and system reliability. The projects primary focus is to address corrosion related pipe issues. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 130 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 131 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 132 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: HP Pipeline Remediation Program ER No: ER Name: 3057 Gas HP Pipeline Remediation Program Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 6,000 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2016 3,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,000 2017 3,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,000 Business Case Description: The intent of this program is to replace segments of high pressure pipelines as determined by Avista's TIMP, DIMP, and Asset Management programs. Additionally, high pressure pipelines without Traceable, Verifiable, and Complete MAOP records will be replaced within this program. The "Federal Mega‐Rule" is expected to become final in 2015 that will make this work mandatory. Depending on the language of the rule, the annual spending levels may need to be increased. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 133 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 134 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 135 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 136 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 137 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Gas Planned Meter Change‐out (“PMC”) Program ‐ Capital Replacements ER No: ER Name: 3055 Gas Meter Replacement Non‐Revenue Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 3,184 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 1,030 80 64 70 77 85 97 113 92 93 89 82 86 2016 1,061 81 66 72 79 87 100 117 96 97 92 85 89 2017 1,093 82 67 74 82 90 104 120 99 100 95 87 92 Business Case Description: This annual program will provide for replacement of gas meters and associated measurement equipment that are completed in association with the Gas Planned Meter Change‐out (PMC) program. Avista is required by commission rules and an approved Tariff in WA, ID, and OR to test meters for accuracy and ensure proper metering performance. Execution of this program on an annual basis will ensure the continuation of reliable gas measurement. This program will include the labor and minor materials associated with the PMC program. Major materials (meters, regulators, and ERTs) will be charged to the appropriate growth ERs. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 138 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 139 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 140 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Rathdrum Prairie HP Main Reinforcement Project ER No: ER Name: 3301 Rathdrum Prairie HP Gas Reinforcement Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 10,000 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2016 5,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,000 ‐ ‐ 2017 5,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,000 ‐ ‐ Business Case Description: Based on recent load studies, load growth on NWP’s Coeur d’Alene lateral will exceed both Avista’s contractual delivery amounts as well as the physical capacity of Northwest Pipeline. This project includes the expansion of a gate station at Chase Road off the GTN pipeline to support a phased‐in high‐pressure pipeline reinforcement to meet projected capacity requirements in Post Falls and Coeur d’Alene, which are currently fed from Northwest Pipeline. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 141 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 142 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 143 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Chase Road Gate Station ER No: ER Name: 3246 Construct Chase Rd Gate Stn Post Falls ID Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 0 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 5,987 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,987 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: This project reinforces gas service to the Rathdrum and greater Coeur d’Alene area by installing a new gate station near Chase Road and extending high pressure main to reinforce the existing Rathdrum/Couer d’Alene high pressure distribution system. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 144 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 145 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 146 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Natural Gas Distribution Business Case Name: Encoder Receiver Transmitter (“ERT”) Replacement Program ER No: ER Name: 3054 Gas ERT Replacement Program Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 1,340 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 402 31 25 27 30 33 37 43 36 36 35 32 36 2016 444 33 27 30 33 37 41 47 41 41 39 35 41 2017 494 35 29 33 36 41 47 52 46 46 44 39 46 Business Case Description: This program covers labor required for the consistent replacement of 19,500 gas ERTs annually for a 12‐year cycle, beginning in the year 2015. Analyses has identified that a levelized replacement strategy will minimize the effect of unit failures as well as introduce new, levelized populations of ERTs into the system for future predictive maintenance. Large populations of ERTs are predicted to fail in quantities of over 20,000 units per year at the peak, causing an operations burden of personnel and equipment as well as an unreasonable number of estimated bills (currently Avista experiences just a couple hundred failures annually due to small ERT populations). The cost of the ERT will go against ER1053, not this business case. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 147 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 148 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 149 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Gas Underground Storage Business Case Name: Jackson Prairie Storage ER No: ER Name: 7201 Jackson Prairie Storage Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 3,648 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 1,356 53 27 115 37 112 378 324 231 3 37 37 3 2016 1,175 98 98 98 98 98 98 98 98 98 98 98 98 2017 1,356 53 27 115 37 112 378 324 231 3 37 37 3 Business Case Description: Jackson Prairie (JP) Underground Storage Facility stores natural gas. Avista owns this facility as a 1/3 partner with Puget Sound Energy and Williams' Northwest Pipeline. Puget Sound Energy is the managing partner for the facility, which is located in Chehalis, WA. The requested capital represents Avista's 1/3 share of the capital needed to maintain the existing facility and maintain equal ownership status. The purpose of the facility is to allow Avista to serve customers on a peak day, and to purchase natural gas at potentially lower costs during off‐peak periods and store that gas for use during high cost periods. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 150 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 151 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 152 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Transportation Business Case Name: Fleet Budget ER No: ER Name: 7000 Transportation Equip Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 23,100 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 10,184 643 641 641 641 642 641 643 641 641 642 642 641 2,484 2016 7,700 643 641 641 641 642 641 643 641 641 642 642 641 2017 7,700 643 641 641 641 642 641 643 641 641 642 642 641 Business Case Description: Fleet utilizes a Vehicle Replacement Model analysis program to determine which vehicles are replaced for the next budget cycle. This program utilizes our internal data regarding equipment utilization, repair costs, purchase costs, disposal costs, and business needs across all classes of equipment. This provides a consistent and level spend to cover all departments effectively. This contributes to the operational readiness for all departments and our Company as a whole. The 5 year projection includes analysis of 19 classes of vehicles in total and the replacement of over 600 assets. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 153 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 154 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 155 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 156 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 157 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Enterprise Technology Business Case Name: AvistaUtilities.com Redesign ER No: ER Name: 5143 AU.com & AVANet Redevelopment Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 6,000 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 4,125 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,125 ‐ 2016 2,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,000 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: Refresh of the AvistaUtilities.com website to improve navigation, updating the look and feel of the overall site, creating a new homepage layout, and improving self‐service and search functionality for customers. Since 2008, web usage on the AvistaUtilities.com site has increased by more than 55% and usability standards have since then changed to incorporate the emergence of mobile app technologies. The refresh includes improved functionality to allow for more customer self‐serve use on our website. Offsets: $100,000 of additional O&M costs are included with this business case which negate the $100,000 of O&M savings (see attached business case “Other Costs.”) These savings are related to reduction in labor due to efficiencies gained by customers being able to navigate the website effectively. No offset has been included in the O&M Offset adjustment for this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 158 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 159 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 160 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Enterprise Technology Business Case Name: Enterprise Business Continuity Plan ER No: ER Name: 5010 Enterprise Business Continuity Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 1,350 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 450 ‐ ‐ 113 ‐ ‐ 113 ‐ ‐ 113 ‐ ‐ 113 2016 450 ‐ ‐ 113 ‐ ‐ 113 ‐ ‐ 113 ‐ ‐ 113 2017 450 ‐ ‐ 113 ‐ ‐ 113 ‐ ‐ 113 ‐ ‐ 113 Business Case Description: Avista has developed an Enterprise Business Continuity Plan (“EBCP”) to facilitate emergency response and business continuity activities in fulfillment of our mission to provide safe and reliable service to our customers. The program supports the Enterprise Business Continuity objectives by providing an all‐hazards framework for emergency response, technology recovery, alternate facilities and business continuity activities. The program provides communications, escalation and operational procedures necessary for efficient response to events. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 161 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 162 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 163 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Enterprise Technology Business Case Name: Mobility in the Field ER No: ER Name: 5144 Mobility in the Field Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 740 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 450 ‐ ‐ 113 ‐ ‐ 113 ‐ ‐ 113 ‐ ‐ 113 2016 320 ‐ ‐ 80 ‐ ‐ 80 ‐ ‐ 80 ‐ ‐ 80 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: This program is to increase the Company’s mobility in the field using mobile devices. A Mobile Road Map Team has documented 30 opportunities where mobile technology could be used in the field. The top opportunities, with the highest benefit and savings, are included over the five‐year program. The first phase is the project called “Visibility in the Field”, which will assist in Leak Survey and Gas Service Dispatch by providing spatial maps in the field using a mobile device. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 164 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 165 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 166 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Enterprise Technology Business Case Name: Technology Refresh to Sustain Business Process ER No: ER Name: 5005 Information Technology Refresh Program Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 48,284 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 18,595 ‐ ‐ 4,649 ‐ ‐ 4,649 ‐ ‐ 4,649 ‐ ‐ 4,649 2016 16,095 ‐ ‐ 4,024 ‐ ‐ 4,024 ‐ ‐ 4,024 ‐ ‐ 4,024 2017 16,095 ‐ ‐ 4,024 ‐ ‐ 4,024 ‐ ‐ 4,024 ‐ ‐ 4,024 Business Case Description: This program is in place to provide for technology refresh in alignment with the roadmaps for application and technology lifecycles. The continuation of technology refresh programs provides benefit to Avista by providing a stable and reliable application and computing platform to allow for the safe and reliable operation of our electric and gas infrastructure. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 167 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 168 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 169 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Enterprise Technology Business Case Name: Customer Service System Replacement (Project Compass) ER No: ER Name: 5138 Customer Information System (CIS) Replacement Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 15,414 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 96,408 ‐ 85,988 3,486 3,885 2,199 850 ‐ ‐ ‐ ‐ ‐ ‐ 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: The Customer Information System (CIS) will be implemented in two waves. The first wave includes the Maximo application in the Company’s areas of Generation, Production, and Substation Support. This wave has an estimated go‐live date or transfer to plant date of September 2013. The second wave, includes Maximo application in the Company’s areas of Transmission, Distribution, and Gas Operations, as well as the Customer Care and Billing application. This large technology project is described in detail in the testimony of Mr. Kensok. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 170 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Enterprise Technology Business Case Name: Enterprise Security ER No: ER Name: 5014 Security Systems Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 9,600 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 3,800 ‐ ‐ 950 ‐ ‐ 950 ‐ ‐ 950 ‐ ‐ 950 2016 3,200 ‐ ‐ 800 ‐ ‐ 800 ‐ ‐ 800 ‐ ‐ 800 2017 3,200 ‐ ‐ 800 ‐ ‐ 800 ‐ ‐ 800 ‐ ‐ 800 Business Case Description: This program is to maintain and improve all security aspects to protect people, assets, information & operations through projects, activities and polices. It will also manage the number of security incidents at level that aligns with our corporate risk expectations. Additionally it will increase the culture of security through education and training. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 171 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 172 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 173 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Enterprise Technology Business Case Name: Technology Expansion to Enable Business Process ER No: ER Name: 5006 Information Technology Expansion Program Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 17,134 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 6,069 13 13 1,479 13 13 1,479 13 13 1,479 13 13 1,529 2016 5,552 12 12 1,363 12 12 1,363 12 12 1,363 12 12 1,363 2017 5,799 13 13 1,424 13 13 1,424 13 13 1,424 13 13 1,424 Business Case Description: This program facilities the technology growth throughout the Company. This includes technology expansion for the entire workforce, business process automation and increases in technology to support efficient business processes. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 174 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 175 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 176 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Enterprise Technology Business Case Name: AFM COTS ER No: ER Name: 5147 AFM COTS Migration Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 15,602 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 15,608 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 15,608 Business Case Description: The project replaces the Company’s obsolete, custom Facilities Management system (Project Atlas) with a commercial, off‐the‐shelf application. The project includes replacement of the natural gas and electric Construction Design Tool, Edit Tool, and the Company’s proprietary Outage Management Tool. These applications aid in the engineering and design of Avista’s electric and gas infrastructure, which costs would increase without the aid of this technology. In addition to supporting design, the Outage Management allows the Company to quickly isolate the likely cause of system outages, to communicate proactively with customers, and to quickly and accurately dispatch Avista crews for service restoration. Also included in the project scope are field mobility applications including a version upgrade to the Ventyx/ABB mobile workforce management system and the addition of mobile tools. These applications will work with the Construction Design, Edit and Outage Management applications to deliver work electronically to field personnel and return completion results electronically to the initiating systems improving the timeliness and accuracy of the work results. Offsets: The attached business case shows O&M Offsets exist. After further discussion it was determined that these savings will be distributed to other expenses and the initial savings will be negated. Therefore, these additional savings have not been included. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 177 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 178 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 179 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Enterprise Technology Business Case Name: High Voltage Protection for Substations ER No: ER Name: 5142 High Voltage Protection Upgrade Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 834 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 719 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 719 ‐ 2016 415 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 415 ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: High Voltage Protection to personnel and telecommunication equipment by fiber integration, demark relocation, & equipment remediation at suburban and rural substations. Offsets: The attached business case shows O&M Offsets exist. After further discussion it was determined that these savings will be distributed to other expenses and the initial savings will be negated. Therefore, these additional savings have not been included. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 180 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 181 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 182 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Enterprise Technology Business Case Name: Next Generation Radio Refresh ER No: ER Name: 5106 Next Generation Radio System Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 458 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 4,200 ‐ ‐ ‐ 2,742 ‐ ‐ ‐ 1,458 ‐ ‐ ‐ ‐ 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: This project is refreshing Avista’s 20 year old Land Mobile Radio (“LMR”) system that is used for critical crew communications during outage restoration and daily operations of maintaining the electric and gas distribution and transmission systems. Avista continues to maintain a private LMR system because the offerings available from public providers cannot provide communication throughout our rural service territory and as a portion of our nation’s critical infrastructure it is imperative that Avista have a communication system that will operate in the event of a disaster to help safeguard the general public. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 183 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 184 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 185 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Enterprise Technology Business Case Name: Microwave Refresh ER No: ER Name: 5121 Microwave Replacement with Fiber Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 8,377 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2,363 ‐ ‐ 591 ‐ ‐ 591 ‐ ‐ 591 ‐ ‐ 591 2016 3,050 ‐ ‐ 763 ‐ ‐ 763 ‐ ‐ 763 ‐ ‐ 763 2017 3,050 ‐ ‐ 763 ‐ ‐ 763 ‐ ‐ 763 ‐ ‐ 763 Business Case Description: The purpose of this project is to refresh the aging microwave technology with current technology to provide for high‐speed data communications. These communication systems support relay and protection schemes of the electrical transmission system. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 186 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 187 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 188 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 189 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Colstrip Transmission Capital Additions ER No: ER Name: 2214 Colstrip Transmission‐PNACI Capital Additions Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 1,504 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 491 41 41 41 41 41 41 41 41 41 41 41 41 2016 497 41 41 41 41 41 41 41 41 41 41 41 41 2017 516 43 43 43 43 43 43 43 43 43 43 43 43 Business Case Description: This program is for capital replacement and upgrades and for O&M expenses for the jointly owned 500 kV Colstrip Transmission System. Program funding is used as transmission assets reach the end of their useful lives, requiring replacement or increased capacity. The program can also be used to accommodate necessary upgrades due to new interconnection requests on these facilities. Under the Colstrip Project Transmission Agreement (among Avista, Northwestern Energy, PacifiCorp, Portland General Electric and Puget Sound Energy), Avista is obligated to fund capital and O&M expenses commensurate with Avista's ownership share in these facilities. Such facilities include hardware, software, and operating system upgrades, as well as deployment of capabilities to meet new operating standards and requirements. Some system upgrades may be initiated by other requirements, including NERC reliability standards, growth, and third‐party projects (e.g. transmission or generation interconnections under FERC regulations). Examples of upgrades to be completed under this program in the next 2 years are: 500 kV breaker replacement at Colstrip Substation, 500 kV communication replacement (OPGW Project) between Broadview and Colstrip to meet required dual communication paths under NERC standards, 500 kV relay upgrades at Broadview and 500 kV tower erosion mitigation. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 190 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 191 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 192 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 193 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 194 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Distribution Grid Modernization ER No: ER Name: 2470 Dist Grid Modernization 2570 Sandpoint Grid Modernization Project Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 35,000 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 11,000 557 467 529 585 665 743 823 733 740 710 617 3,832 2016 11,000 539 469 513 576 692 678 705 725 730 744 583 4,044 2017 13,000 558 482 523 585 699 684 720 729 735 750 593 5,943 Business Case Description: The Distribution Grid Modernization Program provides value to customers and shareholders by improving grid reliability, energy savings and operational ability through a systematic and managed upgrade of our aging distribution system. This program seeks cost effective opportunities to increase service quality performance and system availability through the identification of locations that would benefit from the addition of switched capacitor banks, regulators and smart grid devices. The long‐term plan represented by the IRR of 6.4% aims to upgrade 6 feeders per year to cover the whole distribution system in a 60 year cycle. This coordinates well with Wood Pole Management's 20 year cycle such that every third planned maintenance trip to a feeder would be an upgrade, expanding Wood Pole Management's scope. The average cost to rebuild each feeder is estimated to be $3.5M. Offsets: O&M offsets associated with this business case may occur in the future, however, they are not quantifiable at this time. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 195 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 196 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 197 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 198 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 199 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Distribution Line Protection ER No: ER Name: 2276 Distribution Line Protection Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 375 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 125 1 1 4 4 18 18 18 20 20 20 3 ‐ 2016 125 1 1 4 4 18 18 18 20 20 20 3 ‐ 2017 125 1 1 4 4 18 18 18 20 20 20 3 ‐ Business Case Description: Avista's Electric Distribution system is configured into a trunk and lateral system. Lateral circuits are protected via fuse‐links and operate under fault conditions to isolate the lateral in order to minimize the number of affected customers in an outage. Engineering recommends treatment of the removal and replacement of Chance Cutouts, the removal and replacement of Durabute cutouts and the installation of cut‐outs on un‐fused lateral circuits. This is a targeted program to ensure adequate protection of lateral circuits and to replace known defective equipment. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 200 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 201 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 202 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Distribution Minor Rebuild ER No: ER Name: 2055 Electric Distribution Minor Blanket Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 24,900 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 8,300 875 672 640 664 684 644 879 622 636 677 684 623 2016 8,300 876 672 640 664 684 644 879 622 636 677 684 622 2017 8,300 876 672 640 664 684 644 879 622 636 677 684 622 Business Case Description: This program is for distribution minor rebuild as requested by the customer or initiated by Avista. Examples of construction work includes replacing meters, services, transformers, primary overhead or underground lines, or devices. This also includes addressing trouble related jobs (i.e. replacing burnt or damaged poles). Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 203 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 204 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 205 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Distribution Transformer Change‐Out Program (“TCOP”) ER No: ER Name: 2535 TCOP Related Distribution Rebuilds Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 10,500 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 4,700 514 379 357 373 387 360 516 345 355 382 386 346 2016 4,700 514 379 357 373 387 360 516 345 355 382 386 346 2017 1,100 120 89 84 87 90 84 121 81 83 89 90 81 Business Case Description: The Distribution Transformer Change‐Out Program has three main drivers. First, the pre‐1981 distribution transformers that are targeted for replacement average 42 years of age and are a minimum of 30 years old. Their replacement will increase the reliability and availability of the system. Secondly, the transformers to be replaced are inefficient compared to current standards. Thirdly, pre‐1981 transformers have the potential to have PCB containing oil. The transformers to be removed early in the programs are those that are most likely to have PCB containing oil and their replacement will reduce the risk of PCB containing oil spills. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 206 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 207 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 208 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Distribution Wood Pole Management (“WPM”) ER No: ER Name: 2060 Wood Pole Mgmt Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 34,000 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 11,000 1,201 886 837 874 905 843 1,207 808 831 895 905 810 2016 11,000 1,201 886 837 874 905 843 1,207 808 831 895 905 810 2017 12,000 1,310 967 913 953 987 919 1,316 882 906 976 987 883 Business Case Description: Distribution Wood Pole Management Program inspects all Electric Distribution Feeders on a 20 year cycle and repairs or replaces wood poles, cross arms, missing lightning arresters, missing grounds, bad cutouts, bad insulating pins, bad insulators, leaking transformers, replaces guy wires not meeting current code requirements on poles replaced by WPM, and replaces pre‐1981 transformers. Offsets: The attached copy of the business case does not identify any O&M offsets. However, The Company estimates the cost of an event associated with a bad wood pole based on crew response and labor is approximately $600. For the test year, Avista saw a slight increase in the number of outages to 850 events. For 2016 we anticipate a reduction of 110 events. We estimate that the O&M offset for 2016 due to Wood Pole Management work is $66,000 (System basis). This results in an Idaho offset of $23,000 in 2016. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 209 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 210 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 211 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 212 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 213 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Meter Minor Blanket ER No: ER Name: 2073 Meter Minor Blanket Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 900 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 300 25 25 25 25 25 25 25 25 25 25 25 25 2016 300 25 25 25 25 25 25 25 25 25 25 25 25 2017 300 25 25 25 25 25 25 25 25 25 25 25 25 Business Case Description: The existing power line carrier system for reading meters has failed and is not repairable. This project will replace the existing meters with two way automated communications system (TWACS) meters and replace substation equipment with TWACS equipment. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 214 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 215 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 216 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 217 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Electric Replacement/Relocation ER No: ER Name: 2056 Distribution Line Relocations 2061 WSDOT Franchise Requirements Construction Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 7,500 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2,400 248 195 186 193 198 187 249 182 185 196 198 182 2016 2,500 258 203 194 201 206 195 259 189 193 204 206 189 2017 2,600 268 211 202 209 215 203 269 197 201 213 214 197 Business Case Description: This annual program will replace sections of existing infrastructure that require replacement due to relocation or improvement of streets or highways. Requirements may come from our franchise agreements, permits, or the Idaho Transportation Department. Avista installs many of its facilities in public right‐of‐way under established franchise agreements. Avista is required under the franchise agreements, in most cases, to relocate its facilities when they are in conflict with road or highway improvements. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 218 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 219 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 220 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Environmental Compliance ER No: ER Name: 6000 PCB Identification & Disposal 6101 Forest Service Requirements 6002 Environmental Compliance Blanket Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 1,500 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 500 21 21 83 21 21 83 21 21 83 21 21 83 2016 500 21 21 83 21 21 83 21 21 83 21 21 83 2017 350 21 21 46 21 21 46 21 21 46 21 21 46 Business Case Description: Implementation of Forest Service Special Use Permits, waste oil disposal, including polychlorinated biphenyls (PCB), and environmental compliance requirements related to storm water management, water quality protection, property cleanup and related issues, etc. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 221 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 222 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 223 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 224 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Primary Underground Residential Distribution (“URD”) Cable Replacement ER No: ER Name: 2054 Electric Underground Replacement Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 1,000 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 1,000 27 20 19 207 208 207 215 18 19 20 21 18 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: This effort involves replacing the first generation of Underground Residential District (URD) cable. This project has been ongoing for the past several years and focuses on replacing a vintage and type of cable that has reached its end of life and contributes significantly to URD cable failures. Offsets: A five year plan to inspect and maintain our padmount equipment will add $800,000 per year (System basis) to O&M spending for the first five years, beginning in 2016. Idaho’s allocation of the additional O&M Costs is $282,000. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 225 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 226 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 227 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Transmission ‐ Reconductors and Rebuilds ER No: ER Name: 2310 West Plains Transmission Reinforce 2423 System Transmission: Rebuild Condition 2457 Benton‐Othello 115 Recond 2550 Burke‐Thompson A&B 115kV Transmission Rebuild Project 2556 CDA‐Pine Creek 115kV Transmission Line: Rebuild 2557 9CE‐Sunset 115kV Transmission Line: Rebuild 2564 Devils Gap‐Lind 115kV Transmission Rebuild Project 2575 Garden Springs‐Silver Lake 115kV – Rebuild H&W‐SLK 2576 Addy‐Devils Gap 115kV – Rec/Rbld 266 & 397 Cond 2577 Benewah‐Moscow 230kV ‐ Structure Replacement 2582 Beacon‐Bell‐Francis & Cdr‐Waikiki 115kV – Reconfigure Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 58,801 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 14,263 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14,263 2016 23,661 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 7,100 ‐ ‐ ‐ 16,561 2017 20,827 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20,827 Business Case Description: This program reconductors and/or rebuilds existing transmission lines as they reach the end of their useful lives, require increased capacity, or present a risk management issue. Projects include: ER 2310 ‐ West Plains Transmission Reinforcement, ER 2550 ‐ Pine Creek‐Burke‐Thompson, ER 2557 9CE‐Sunset Rebuild, ER 2423 ‐ System Condition Rebuild, ER 2457 Benton‐Othello Rebuild, ER2556 CDA‐Pine Creek Rebuild, ER 2564 Devils Gap‐Lind Major Rebuild, ER 2574 ‐ Chelan ‐Stratford River Crossing Rebuild, ER 2576a Addy‐Devils Gap Reconductor, ER 2575 Garden Springs‐Silver Lake Rebuild, ER 2582 BEA‐BEL‐F&C‐WAI Reconfiguration, ER 2577 BEN‐M23 Rebuild, ER 25xa ‐ Out‐Year Transmission Rebuild. Offsets: To calculate amount of the savings to be reflected in our rate year, reduced line losses are multiplied against the avoided energy cost of $44 per MWh to arrive at the total energy savings. Benton ‐Othello 115 will experience a reduction in line losses of 225 MWh both in 2016 and in 2017, which, after applying the avoided energy cost per MWh of $44, equates to $9,900 of offsets on a system basis in both 2016 and 2017 ($19,800 total), with $6,987 total allocated to Idaho Electric. For Bronx‐Cabinet, after Avista’s revenue requirement was finalized, it was determined that O&M Offsets should have been calculated by multiplying the avoided energy cost rate of $44 per MWh by 572 MWH for 2015 and 1,144 MWh for 2016. The resulting offsets amount to $75,504 ($25,168 in 2016 and $50,336 in 2017) for the total system and $26,645 ($8,882 in 2016 and $17,763 in 2017) for Idaho Electric. (The previously calculated Idaho allocation included in the revenue requirement was $23,447 for 2016 and 2017, in total) ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 228 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 229 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 230 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Segment Reconductor and FDR Tie Program ER No: ER Name: 2514 Distribution ‐ Spokane North & West 2515 Distribution ‐ CdA East & North 2516 Distribution ‐ Pullman & Lewis Clark Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 11,720 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 3,734 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,734 2016 3,809 223 223 223 223 223 223 223 223 223 223 223 1,358 2017 4,175 283 283 283 283 283 283 283 283 283 283 283 1,058 Business Case Description: Distribution planning has identified a number of thermal constraints on the system where "segment reconductor" work is warranted to mitigate thermally overloaded conductor. In addition, a number of urban feeder tie additions are required to meet the Company's 500 Amp feeder plan also known as the "feeder and one‐half" plan. This work is planned and coordinated with assistance from the five (5) Area Engineers in Spokane, Big Bend, Colville, Coeur'd Alene, and Pullman. Annual spend varies from year‐to‐year but the operational premise is constant: mitigate thermally overloaded conductor, mitigate known or emerging voltage issues, and establish FDR tie points in compliance with the Company's 500A Feeder Plan. Offsets: O&M offsets associated with this business case may occur in the future, however, they are not quantifiable at this time. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 231 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 232 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 233 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Lewiston Mill Rd. 115 kV Substation – New Sub ER No: ER Name: 1107 Lewiston Mill Rd. 115 kV Substation – New Sub Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 0 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Resid. CWIP 2015 684 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 684 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: A new 115‐13 kV substation is required to serve the sawmill for the Idaho Forest Group in Lewiston near Clearwater Paper Co. This new substation will have one 20 MVA transformer, 115 kV Circuit Switcher, panelhouse, full SCADA/Communications, and two 13 kV distribution feeder bays. The transmission will tap the existing Clearwater‐Lolo #2 line with associated air switches for isolation. This substation is required for Avista to serve this customer. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 234 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 235 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 236 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Storm Related Electric Transmission and Distribution Capital Project ER No: ER Name: 2051 Electric Transmission Plant‐Storm 2059 Failed Electric Dist Plant‐Storm Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 8,673 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 3,000 389 289 233 215 196 186 245 180 208 242 292 325 2016 2,790 351 261 216 204 191 180 242 174 196 226 264 285 2017 2,883 366 272 223 209 194 184 246 178 202 233 275 299 Business Case Description: This program will replace cross arms, poles and structures as required due to storms, fires on distribution and transmission lines. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 237 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 238 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 239 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Substation ‐ 115 kV Line Relay Upgrades ER No: ER Name: 2217 Spokane‐CDA 115 kV Line Relay Upgrades Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 1,000¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 1,525 ‐ ‐ ‐ ‐ 1,000 ‐ ‐ ‐ 525 ‐ ‐ ‐ 2016 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: The 115 kV Transmission line relaying in the greater Spokane‐Couer d'Alene area needs to be upgraded. Per System Protection's revised memo dated 10/25/07, the relaying and communications must be upgraded to eliminate false trips and mis‐coordination of relays as well as the requirement to trip lines quickly enough to avoid system transient instability, which could lead to cascading outages. The first two years of the project completed the installation of fiber optic communications to all the required substations. Year Two marked the beginning of relay upgrades in the Spokane area, and the remainder of the project will complete the relay upgrades as planned. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 240 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 241 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 242 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Substation ‐ Asset Mgmt. Capital Maintenance ER No: ER Name: 2215 System ‐ Replace High Voltage Breakers 2252 System ‐ Replace/Install Relays 2253 System ‐ Upgrade Meters 2275 System ‐ Rock/Fence Restore 2278 System‐Replace Obsolete Reclosers 2280 System ‐ Replace Obsolete Circuit Switchers 2293 SCADA ‐ Install/Replace 2294 System ‐ Batteries 2336 System ‐ Replace Dist Power Xfmrs 2425 System ‐ High Voltage Fuse Upgrades 2449 System ‐ Replace Substation Air Switches 2481 System‐Replace/Install Capacitor Banks 2492 System‐Install Autotransformer Diagnostic Monitor 2493 System‐Replace/Upgrade Voltage Regulators Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 12,300 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2,708 221 1 346 163 364 138 221 101 393 263 407 88 2016 4,819 222 2 347 164 365 2,239 222 102 394 264 408 89 2017 4,851 225 4 350 167 368 142 225 104 397 267 410 2,192 Business Case Description: This program installs, replaces, or upgrades substation apparatus via Asset Management planning or emergency replacements. All obsolete, end‐of‐life, or failed apparatus are covered under this program. Apparatus includes panel houses and associated equipment, high voltage breakers, relays, metering, surge arresters, rock and fence, low voltage breakers/reclosers, circuit switchers, SCADA systems, batteries and chargers, power transformers, high voltage fuses, air switches, capacitor banks, autotransformer diagnostic equipment, step voltage regulators, and instrument transformers. Offsets: The System‐Install Autotransformer Diagnostic Monitor program includes additional incremental costs in 2016 of $162,000 ($57,000 ID). O&M Costs beginning in 2016 are estimated to be $170,300 with potential O&M savings of $8,217 annually. Therefore, the net costs from the Autotransformer program are $162,000, as previously discussed. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 243 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 244 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 245 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Substation ‐ Capital Spares ER No: ER Name: 1006 Power Xfmr‐Distribution 2000 Power Xfmr‐Transmission 2001 Power Circuit Breaker Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $14,765 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 5,100 ‐ ‐ 160 ‐ 560 ‐ ‐ 400 3,420 400 160 ‐ 2016 6,115 ‐ ‐ ‐ ‐ 650 ‐ ‐ 900 250 4,315 ‐ ‐ 2017 2,000 ‐ ‐ 200 ‐ 650 ‐ ‐ 900 250 ‐ ‐ ‐ Business Case Description: This program maintains our fleet of Power Transformers and High Voltage Circuit Breakers. This fleet of critical apparatus is capitalized upon receipt and placed in service for both planned and emergency installations as required. The annual program expenditures may vary significantly in years when an Autotransformer (230/115 kV) is purchased. In years without an Autotransformer purchase, only minor variations will occur based on planned projects as well as replenishing apparatus fleet levels required for adequate capital spares. These are long lead time items so apparatus levels need to be managed. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 246 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 247 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 248 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Substation ‐ Distribution Substation Rebuilds ER No: ER Name: 2204 System Wood Substation Rebuilds 2285 Sunset Sub ‐ Rebuild 2317 Lyons & Standard 115 Sub‐Increase Capacity 2341 Ninth & Central Sub ‐ Increase Capacity & Rebuild 2562 Grangeville 115 kV Sub ‐ Rebuild 2566 Northwest 115 kV ‐ Rebuild Substation 2567 Chester 115 kV ‐ Rebuild Substation 2568 Metro 115 kV ‐ Rebuild Substation 2569 Gifford 115 kV ‐ Rebuild Substation 2590 Deer Park 115 kV Sub – Minor Rebuild 2395 SE 115 Bus‐Upgrd Xfmr and add 12F6 2573 Little Fall 115 kV Sub – Rebuild Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 15,530 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2,387 6 6 6 6 6 6 756 6 6 1,114 106 361 2016 5,849 36 36 286 36 1,436 36 36 36 36 3,486 36 351 2017 6,180 21 21 21 21 21 1,321 1,421 21 21 2,561 21 711 Business Case Description: This program replaces and/or rebuilds existing substations as they reach the end of their useful lives, require increased capacity, or cannot accommodate necessary equipment upgrades due to existing physical constraints. Included are Wood Substation rebuilds as well as upgrading stations to current design and construction standards. Some station rebuilds may be initiated by other requirements, including obligation to serve, growth, and external projects. Examples of substation rebuilds to be completed under this program in the next 5 years are Big Creek & Kamiah (Wood Substation), Millwood (Life Cycle), Turner (Smart Grid Investment Grant), Blue Creek (Productivity), Lucky Friday (Growth), and Pine Creek Distribution (Life Cycle). Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 249 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 250 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 251 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Substation ‐ New Distribution Substations ER No: ER Name: 2274 Tamarack 115Kv Sub‐Construction 2322 Downtown West Sub ‐ Property 2443 Greenacres 115‐13kV Sub ‐ New Construct 2587 Irvin 115‐13 kV Sub ‐ Add Distribution Station Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 5,025 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2,026 ‐ ‐ ‐ ‐ ‐ 1,900 ‐ ‐ ‐ ‐ ‐ 126 2016 75 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 75 2017 2,323 21 21 21 21 21 21 1,846 21 21 21 21 269 Business Case Description: This program adds new distribution substations to the system in order to serve new and growing load as well as for increased system reliability and operational flexibility. New substations under this program will require planning and operational studies, justifications, and approved project diagrams prior to funding. Planned new substation projects include Tamarack (NE Moscow), Greenacres and Irvin (Spokane Valley), Hillyard and Downtown West (Spokane). Out years include construction for these and design and construction for one new substation per year on average depending on need and justifications. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 252 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 253 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 254 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Tribal Permits and Settlements ER No: ER Name: 2301 Tribal Permits and Settlements Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 2,045 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 1,430 119 119 119 119 119 119 119 119 119 119 119 119 2016 316 26 26 26 26 26 26 26 26 26 26 26 26 2017 297 25 25 25 25 25 25 25 25 25 25 25 25 Business Case Description: Avista has hydroelectric, transmission, distribution and substation facilities located on the Coeur d'Alene, Colville, Flathead (Salish/Kootenai), Nez Perce and Spokane Tribe Reservations. These facilities are essential components of our energy resource and delivery systems. Avista is required to obtain permits from the Bureau of Indian Affairs (BIA) for its facilities on land held in trust by the federal government for Tribes and/or individual tribal members. Through some of its tribal settlements, Avista obtained the necessary tribal consent and BIA permits for its facilities on tribal trust land. However, Avista needs to renew approximately 700 rights of way permits for other facilities on Trust Land. The original permits were obtained 50+ years ago and the renewal process can be time‐consuming (multiple years) and costly. Some of the permits may be in a trespass situation. Avista is actively working with the BIA and the Tribes to file renewal applications and complete the renewal process. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 255 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 256 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 257 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Worst Feeders ER No: ER Name: 2414 Sys‐Dist Reliability‐Improve Worst Feeders Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 6,000 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 1,999 21 21 21 21 21 21 21 21 21 21 21 1,770 2016 2,000 100 100 125 125 125 125 250 250 250 250 150 150 2017 2,000 167 167 167 167 167 167 167 167 167 167 167 167 Business Case Description: Initiating in 2009, ER 2414‐ "Worst Feeders" was proposed by Asset Management to improve the service reliability of the Company's worst performing electric distribution circuits. Many rural feeders significantly exceed the Company SAIFI target of 2.1. This program is coordinated through divisional Area Engineers to identify treatment of these feeders. Work plans may include, reconstruction, hardening, vegetation management, conversion from overhead to underground, enhanced protection, and relocation. Offsets: O&M offsets associated with this business case may occur in the future, however, they are not quantifiable at this time. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 258 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 259 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 260 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Spokane Valley Transmission Reinforcement ER No: ER Name: 2446 Irvin Sub ‐ New Construction 2474 Beacon‐Boulder #2 115: Capacity Upgrade 2552 Opportunity 115 kV Switching Station Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 8,890 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2,900 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,300 600 2016 7,440 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,400 ‐ 2,040 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: The Spokane Valley Transmission Reinforcement Project includes rebuilding 4.4 miles of the Beacon ‐ Boulder #2 115 kV Transmission Line, constructing the new Irvin Switching Station, rebuilding 1.75 miles of the Irvin ‐ Opportunity 115 kV Tap, installing circuit breakers at Opportunity Substation, and constructing a new 2.2 mile 115 kV transmission line from Irvin to Millwood/Inland Empire Paper. The completion of these projects are required to mitigate existing and future performance and reliability issues of the Transmission System in the Spokane Valley. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 261 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 262 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 263 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Clearwater Substation Upgrades ER No: ER Name: 2571 Clearwater 115 kV Substation Upgrades Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 1,000 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 500 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 500 ‐ ‐ 2016 500 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 500 ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: Clearwater 115 kV Substation Upgrades. Several components in this station have reached their life cycle and need to be replaced. Some of the station components are non‐standard and relatively unreliable. This project will upgrade the station by adding a 115 kV bus sectionalizing breaker and associated air switches on the section of bus between the two power transformers for better operational flexibility and restoration. This work includes construction of a 115 kV line terminal and relocation of 2 lines, upgrading metering, and adding SCADA. This is very difficult work in this particular station and this customer requires continued operation during construction. The protective relays and associated communication system will be upgraded to improve reliability of service. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 264 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 265 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 266 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Street Light Management ER No: ER Name: 2584 Street Light Conversion to LED Fixtures Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 4,500 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 1,500 133 124 123 124 125 123 133 122 123 124 125 122 2016 1,500 142 123 120 122 124 120 143 118 120 124 124 118 2017 1,500 142 123 120 122 124 120 143 118 120 124 124 118 Business Case Description: Street Light Maintenance Program. This program is a 5 year planned replacement of bulbs and 10 year planned replacement of photocells. Offsets: We anticipate there will be annual O&M savings in beginning in 2015 in the amount of $468,000 and will increase to $722,000 in 2016; an incremental increase of $254,000 for 2016. The offsets result from the conversion from High Pressure Sodium to 100 Watt street lights. The savings come from the reduction in labor, equipment, material, and overhead costs associated with repairing older lights. We have included O&M Offsets of $468,000 ($165,160 ID) for 2015 and $254,000 ($89,640 ID) for 2016 in our Pro Forma adjustment. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 267 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 268 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 269 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 270 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 271 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Noxon Switchyard Rebuild ER No: ER Name: 2532 Noxon 230 kV Substation ‐ Rebuild Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 15,500 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 8,325 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 7,800 ‐ ‐ 525 2016 500 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 500 2017 7,700 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6,000 ‐ 1,700 Business Case Description: The existing Noxon Rapids 230 kV Switchyard requires reconstruction due to the present age and condition of the equipment in the station. The existing bus is constructed as strain bus (which has suffered a number of recent failures) and is configured as a single bus with a tiebreaker separating the East and West buses. The station is the interconnection point of the Noxon Rapids Hydroelectric development as well as a principal interconnection point between Avista and BPA, and as such is a significant asset in the reliable operation of the Western Montana Hydro Complex. Equipment outages within the Station (planned or unplanned) can cause significant curtailments of the local generation output. Due to the significance of the station, a complete rebuild will require coordination with Avista’s Energy Resources Department and neighboring utilities, primarily BPA. The Noxon Switchyard Rebuild Project is proposed to be a Greenfield Double Bus Double Breaker 230 kV switching station to replace the existing Noxon Switchyard. Offsets: There are no anticipated offsets with this business case. ¹The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 272 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 273 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 274 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Transmission ‐ Asset Management ER No: ER Name: 2057 Transmission Minor Rebuild 2254 System 115kV Air Switch Upgrade Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 5,262 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 1,709 67 67 96 96 197 197 197 216 216 216 82 63 2016 1,772 9 9 62 62 248 248 248 284 284 284 35 (0) 2017 1,780 9 9 62 62 249 249 249 285 285 285 36 ‐ Business Case Description: The Transmission Asset Management Business Cases represent the mitigation Minor Rebuild (ER 2057) work associated with Avista Aerial Patrol and Wood Pole Management programs developed to comply with NERC Standard FAC‐501‐WECC‐1, and Air Switch Replacements (ER 2254) made on a condition and age evaluation. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 275 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 276 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 277 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Transmission ‐ NERC Low Priority Mitigation ER No: ER Name: 2579 Low Priority Ratings Mitigation Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 5,500 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 500 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 500 2016 2,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,000 2017 3,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,000 Business Case Description: This program reconfigures insulator attachments, and/or rebuilds existing transmission line structures, or removes earth beneath transmission lines in order to mitigate ratings/sag discrepancies found between "design" and "field" conditions as determined by LiDAR survey data. This program was undertaken in response to the October 7, 2012 North American Electric Reliability Corporations (NERC) "NERC Alert" ‐ Recommendation to Industry, "Consideration of Actual Field Conditions in Determination of Facility Ratings". This Capital Program (ER25xx) covers mitigation work on Avista's "Low Priority" 230kV and 115kV transmission lines. Mitigation brings lines in compliance with the National Electric Safety Code (NESC) minimum clearances values. These code minimums have been adopted into the State of Washington's Administrative Code (WAC). Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 278 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 279 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 280 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Transmission ‐ NERC Medium Priority Mitigation ER No: ER Name: 2581 Medium Priority Ratings Mitigation Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 5,545 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 3,294 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,294 2016 2,251 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,251 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: This program reconfigures insulator attachments, and/or rebuilds existing transmission line structures, or removes earth beneath transmission lines in order to mitigate ratings/sag discrepancies found between "design" and "field" conditions as determined by LiDAR survey data. This program was undertaken in response to the October 7, 2012 North American Electric Reliability Corporations (NERC) "NERC Alert" ‐ Recommendation to Industry, "Consideration of Actual Field Conditions in Determination of Facility Ratings". This Capital Program (ER2581) covers mitigation work on Avista's "Medium Priority" 230kV and 115kV transmission lines, including North Lewiston‐Shawnee 230kV, Beacon‐Bell #4 230kV, Beacon‐Bell #5 230kV, Noxon‐Hot Springs #2 230kV, Beacon‐Boulder #2 115kV, Beacon‐Francis & Cedar 115kV, 9th & Central‐Otis 115kV, Northwest‐Westside 115kV, Dry Creek‐Talbot 230kV, Walla Walla‐Wanapum 230kV, Benewah‐Moscow 230kV, Devils Gap‐Stratford 115kV. Mitigation brings lines in compliance with the National Electric Safety Code (NESC) minimum clearances values. These code minimums have been adopted into the State of Washington's Administrative Code (WAC). Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 281 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 282 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 283 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: SCADA ‐ System Operations & Backup Control Center ER No: ER Name: 2277 SCADA Upgrade Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $3,066 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 1,020 85 85 85 85 85 85 85 85 85 85 85 85 2016 1,002 83 83 84 83 83 84 83 83 84 83 83 84 2017 1,044 87 87 87 87 87 87 87 87 87 87 87 87 Business Case Description: This program replaces and/or upgrades existing electric and gas control center telecommunications and computing systems as they reach the end of their useful lives, require increased capacity, or cannot accommodate necessary equipment upgrades due to existing constraints. Included are hardware, software, and operating system upgrades, as well as deployment of capabilities to meet new operational standards and requirements. Some system upgrades may be initiated by other requirements, including NERC reliability standards, growth, and external projects (e.g. Smart Grid). Examples of upgrades to be completed under this program are Critical Infrastructure Protection version 5 (NERC requirement), Gas Control Room Management (PHMSA requirement), WECC RC Advanced Applications, and Technology Refresh (network and storage). Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 284 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 285 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 286 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 287 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 288 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: South Region Voltage Control ER No: ER Name: 2580 South Region Transmission Voltage Control Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 4,900 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2016 4,900 ‐ ‐ ‐ ‐ ‐ ‐ 4,900 ‐ ‐ ‐ ‐ ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: Avista's south region 230 kV transmission lines, primarily around Lewiston‐Clarkston, experience excessive high voltage during light load periods. Voltages exceed equipment ratings over 35% of the time. Operation of equipment outside of equipment ratings imposes potential legal and regulatory risks to the Company on top of increasing large scale outage possibilities. The ability to control MVAR flow at our BPA interconnection will also reduce power factor penalty charges. The expected IRR, including effects, is 6.38%. With automatic control, existing overvoltages can be reduced, if not eliminated, on the 230kV buses at Dry Creek, Lolo, and N.Lewiston, as well as Moscow and Shawnee. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 289 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 290 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 291 of 295 AVISTA UTILITIES 2015‐2017 CAPITAL PROJECTS Functional Group: Electric Transmission / Distribution Business Case Name: Westside Rebuild Phase One ER No: ER Name: 2531 Purchase Westside Property Approved Business Case Spend Amount 2015‐2017 ($000s ‐ System): $ 1,750 ¹ Transfer to Plant Amounts ($000s ‐ System): Year Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2016 1,780 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,780 ‐ 2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Business Case Description: This business case is for the purchase of property at Westside. The purchase was made for the anticipated reconstruction of the existing 115 kV and 230/115 kV Autotransformer bus arrangement anticipated to being in 2017 or 2018. Offsets: There are no anticipated offsets with this business case. ¹ The business case amount reflects approved capital expenditures for the years indicated and not transfers to plant. Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 292 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 293 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 294 of 295 Exhibit No. 11 Case Nos. AVU-E-15-05 and AVU-G-15-01 K. Schuh, Avista Schedule 3, Page 295 of 295