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HomeMy WebLinkAbout20170914Christie Direct.pdfON BETIATF OE AVISTA CORPORATION DAV]D J. MEYER V]CE PRESIDENT AND CHIEF COUNSEL FOR REGULATORY & GOVERNMENTAL AFFAIRS P.O. BOX 3727 1477 EAST MISSION AVENUE SPOKANE, WASHTNGTON 99220-3121 TELEPHONE: (509) 495-4316 EACSIMTLE: (509) 495-8851 DAV] D. MEYERGAVISTACORP . COM ION BETIAI,E OE HYDRO ONE I,IMITED ELIZABETH THOMAS, PARTNER KARI VANDER STOEP, PARTNER K&L GATES LLP 925 FOURTH AVENUE, SUfTE 2900 SEATTLE, WA 981014-1158 TELEPHoNE: (206) 623-1580 FACSIMILE: (206) 370-6190 LIZ . THOMASGKLGATES. COM KARI . VANDERSTOE P GKLGATES . COM r\) L1 l BEEORE THE IDAHO PT'BLIC UTII,ITIES COMMISSION IN THE MATTER OE THE JOINT APPLTCAT]ON OF HYDRO ONE LIMITED (ACT]NG THROUGH ITS ]NDIRECT SUBSIDIARY, OLYMPUS EQUITY LLC) AND AVTSTA CORPORATION FOR AN ORDER AUTHORIZ]NG PROPOSED TRANSACTION CASE NO CASE NO AVU-E-17-lI9 AVU-G- 71 - o5 DIRECT TESTIMONY OF KEVIN J. CHRIST]E EOR AVISTA CORPORATION (ELECTRIC AND NATURAL GAS) 1 2 3 4 5 6 1 B 9 I. INTRODUCTION 9. Please state your name, employer and business address. A. My name is Kevin Christie and I am employed as the Vice President of Customer Solutions for Avista Utilities, at 1477 East Mission Avenue, Spokane, Washington. a. I[ould you briefly describe your educational. background and professional experience? A. Yes. I graduated from Washington State University 10 with a Bachelor's Degree in Business Administration with an 11 accounting emphasis. I have also attended the University of 12 Idaho Utility Executive Course and the Finance for Senior 13 Executives program at Harvard Business School. 74 I joined the Company in 2005 as the Manager of Natural Gas 15 Planning. In 2001, f was appointed the Director of Gas Supply, 16 then in 2012 I was appointed as the Senior Director of Finance. 1-1 In 201-4 I was appointed to Senior Director of Customer Solutions 18 and i-n 2015 I was appointed to my current position of Vice 19 President of Customer Sol-utions. 20 Prior to joining Avista, f was employed by Gas Transmission 27 Northwest (GTN). I was employed by GTN from 200L to 2005 and 22 was the Director of Pipeline Marketing and Development from 23 2003 Lo 2005 and the Director of Pricing and Business Analysis Christie, Di 1 Avista Corporation 1 2 3 4 5 6 1 9 10 11 72 13 L4 15 1,6 1_1 1B t9 20 27 22 23 24 25 I. rr. III. IV. from 2007 to 2003. From 2000 to 200L, f was employed by PG&E Corporation (PG&E) as the Manager of Finance and Assistant to the SVP, Treasurer and CFO. Before joini-ng PG&E, I was employed by Pacific Gas Transmission Company (PGT) from 1994 to 2000. WhiIe at Pricing Affairs. a. A. Solutions organization, programs, and what we are expectations. f wiIl also Applicants") as part of the the Proposed Transaction. Transaction wilf provlde PGT, I held several positions including Manager, and Business Analysis and, Director of Regulatory Ilhat is the scope of your I wiII provide an overview testimony? of the Company's Customer by Avista and Hydro One (hereafter jointly referred to as "Joint our Customer Service and support doing to meet our evolving customer explain certaj-n commitments proposed companies' request for approvaf of the wiII explain why this Proposed opportunity to preserve and in that regard Hydro One stands I enhance customer service,' and behind Avista to maintain and improve customer service. A table of the contents for my testimony is as foflows: Description Page Introduction Overview of Avista's Customer Sol-utions Operations Customer Service and Support Programs Joint Applicants' Commitments 1 3 5 10 Christie, Di 2 Avista Corporation 1 2 3 4 q 6 1 B 9 II. O\IERVIEW OE AVISTA'S CUSTOMER SOLUTIONS OPERATIONS A. Before discussing the specifics of the Proposed Transaction, and how the Transaction will affect Avista, please provide a brief overview of Avista's current Customer Solutions operations. A. Avista's Customer Solutions organization is comprised of customer-facing departments - i.e., those that work dj-rectly with our customers. Our organi-zatj-on supports the Company's 378,000 electric and 3421000 natural gas customers (as of June 30, 2071 ) of which, L29,000 and 81,000 respectively, were Idaho customers. Our team j-s committed to anticipating, developing, and impJ-ementing innovative and engaging solutions that meet our customers' needs and expectations. In additionr we are continually monitoring trends in the utility industry in order to be proactive in providing our customers with solutions they may be interested in. Lastly, we have renewed and enhanced our emphasis in creating a feedback loop with our customers. For example, we have been testing self-service technology with customers, have used a socia1 media panel for testing ideas, as well as surveying customers on programs they have participated in, 1i-ke our smal-1 business energy efficiency program. Christie, Di 3 Avista Corporation 10 11 12 13 L4 15 76 71 1B 79 20 27 1 2 3 4 q A. Please provide an overview of the departments within the Customer Solutions organization that interact with Avista's customers. A. The following are the primary departments that interact with our customers: Customer Service: The Customer Service department is the primary interface between the Company and its customers, including areas such as meter reading, billi-ng, and the caII center. Comunity Outreach and Energy Assistance: The Community Outreach and Energy Assistance department is responsible for delivering and administering energy assistance programs that reduce the energy burden for our low income and vufnerabl-e customers. In addition, the department is responsible for offering energy conservation and education to low-income customers. Energ'y Efficiency: The Energy Efficiency department is responsible for delivering the Company's electric and naturaf gas energy efficiency programs. Its primary goal is to meet or exceed the annual kV[h and therm savings goals j-n both the Company's Idaho and Washington jurisdictions. Our natural gas energy efficiency programs in Oregon are delivered by the Energy Trust of Oregon (ETO). In addj-tion to delivering programs to reach the Company's savi-ngs goa1s, the Energy Efficiency department also provides tools and education to help customers control their energy costs and reduce their energy "footprint." External Cormunications: The External Communications department is responsible for customer communications and for the Company's externaf facing technol-ogies, which include the Company's website and mobile applications. Products and Services: The Products and Services department is responsible for defivering new products and services that our customers desire. Through engagement and customer research, the department is focused on delivering solutions that meet our customers' evolving needs and expectations. Christie, Di 4 Avista Corporation 6 1 8 9 10 11 72 13 t4 Ttr-LJ t6 71 1B 79 20 2L 22 )') 24 atrZJ 26 21 2B 29 30 31 32 33 34 35 36 31 3B 39 40 4t 1 2 3 4 5 6 1 B 9 AII of these departments and the rol-es they serve wilI remain in place following Transactions and, as I will the closing of explain later in the Proposed my testimony, Avista will serve our following the closing of the Proposed Transaction have increased opportunities and resources to customers and our Iocal- communities. 10 III. CUSTOMER SERVICE & SUPPORT PROGRJAI{S A. Please describe Avista's Customer Service department. A. Avj-sta's Customer Service department is the primary interface between the Company and its customers and incl-udes Meter Reading, BilIing, Credit and Collections, and the Call- Center. In 20L6, the CaIl Center answered 126,644 calls and fielded 66,724 email-s and electronic communications from customers across the Company's three jurisdictions: Idaho, Washington, and Oregon.l Avista has service centers located in Coeur d'A1ene, Idaho; Lewi-ston, Idaho and Spokane, Washington that are networked together to operate as a single CalI Center supporting Avj-sta's customers. Each employee is trained in their role to 1 The Cal-I Center and many of our other customer support programs afso serve our approximately 3O retail electric customers i-n Western Montana. Avista's electric service in Juneau, Alaska, through Alaska El-ectric Llqht and Power Company (AEL&P) , operates independently of Avista Utilities. Customer servlce is provided by AEL&P employees ln Juneau, Afaska. Christie, Di 5 Avista Corporation 11 72 13 t4 1tr-LJ 76 71 18 19 20 27 1 work with customer accounts or take phone calls from customers 2 tn all three of the Company's ;urisdictions. A11 customer phone 3 calls come in through a single number, 7-800-227-9781 | and are 4 answered by the next available representative, regardless of 5 where the customer is located. 6 Our Voice of the Customer (VOC) results for the first 7 quarter in 2011 show that 95% of our customers in our ldaho, B Washington and Oregon operating divisions that had contact wj-th 9 Avista's CalI Center were satisfied or very satisfied with the 10 service they received. 11 A. Ifltrat customer support programs does Avista provide 72 for its customers in ldaho? 13 A. Avista offers a number of programs for its Idaho 14 customers, such as Project Share for emergency assistance to 15 customers, a Customer Assistance Referral- and Evafuation 16 Service (CARES) program, senior programs, leve1 pay p1ans, and 11 payment arrangements. Through these programs, the Company 18 works to ease the burden of energy costs for customers that 19 have the greatest need. 20 To assist our customers in their abiJ-ity to payr the j-n four primary areas:27 Company focuses on actions and programs ZZ 1) low income and senior outreach programs; 2) energy effj-ciency and energy conservation education,' and 3) support of community Christie, Di 6 Avista Corporation z5 1 , 3 4 trJ 6 1 B 9 programs that increase customers' abili-ty to pay basic costs of livi-ng. A. Please briefly describe Project Share. A. Project Share is a community-funded program Avista sponsors to provide and/or individuals one-time emergency support to families where Avista provides service. Avista customers and shareholders help support the fund with voluntary contributions that are distr j-buted through l-ocal community customers in need. Grants are availabl-e toaction agencies those in need, recipients are gas customers. A. Iflhat other tools does the Conrpany offer to assist 74 customers in managing their biJ.ls? 15 A. B j-1I assistance is avail-able through LIHEAP, and Project Share, the Company offers many billing options to make it easier for customers to manage thej-r bilIs. Choices available to customers include Comfort Level- Bil1ing2, flexible payment plans or arrangements, and preferred due dates. One of the goals of our Customer Service department is to provide tools t6 71 1B 19 20 2 Comfort Level- Bl11ing (CLB) is a "payment p1an" designed to average the bil-l-s over 72 months. It leve1s out the seasonal highs and l-ows to one levef payment all year. It is based on the previous 12 months of billed usage. Christie, Di 1 Avista Corporation to 10 without regard to their heating source, and the not required to be Avista electrj-c or natural11 72 13 1 and options to customers to help them manage their bill-s before 2 they face a financial- hardship or crisis. 3 By accessing their account onl-ine, customers can util-ize 4 our BilI Anal-yzer tool-, which helps them compare their usage to 5 prior months or years, ds wel-l as understand the key driving 6 factors in any usage increases, such as weather, billing days, 7 rate changes, and increased or decreased usage. Customers can B also access our Home Energy Analyzer too1, and complete a survey 9 about their speci-fic usage to help fine tune suggestions for 10 energy savi-ngs and management. 11 A. Please sunna.rize Avista's Customer Assistance 72 Referal and Evaluation Services (CARES) program. 13 A. fn ldaho, Avista j-s currently working with 125 14 special needs customers and 55 life-support customers in the 15 CARES program. Specially-trained representatives provj-de L6 referrals to area agencies and churches for customers with 71 special needs for help with housing, utilities, medical 18 assistance, etc. One of the benefits we have in utilizing CARES 19 representatives is the ability to evaluate each customer, based 20 on their specific need, and to educate them on what assistance 27 is availabl-e within the community. A goal of the program is to 22 enabl-e customers to manage not only their Avista bill, but other 23 bills and needs as well-. Christie, Di B Avista Corporation 1 2 3 4 A. Does the Coryany perfo::m any other outreach to itE customers? 5 6 1 B 9 10 11 72 13 t4 15 76 I1 18 79 20 2t ZZ 23 24 25 ZO 21 28 29 30 J] 32 34 35 36 11 3B 39 40 47 A. Yes. The following are examples of outreach programs that are availab]e to customers: 1. Senior and Low-Income Outreach: Avista has developed specific outreach efforts to reach our more vulnerabl-e fixed and low-income customers (with special- emphasis on seniors and disabled customers) with bill payment assistance and energy efficiency information that emphasizes comfort and safety. Avista accomplishes this outreach mainly through Energy Vrlorkshops . During 2016, 22 workshops were conducted reaching nearly 679 seniors and low-income individuals. AI1 workshop participants were given Home Energy Efficiency kits along with tips for low-cost/no-cost ways to manage energy use. Each kit conlains energy-saving j-tems such as LED Iight bulbs, pJ-asti-c window covering, draf t stoppers f or exterior J-i-qht switches and outlets, v-seal- for drafty doors and a polar fleece 1ap blanket. The Company al-so conducts general outreach in partnership with organizations that are in contact with vulnerable individuals through resource fai-rs or in-home services. General outreach partnerships reached 5,563 individuals through 31 activities. Through all of these venues, individual-s are provided with information to effectively manage their home energy use and the Company's biII assistance programs. 2. Senior Pr:blications: Avista has created a one-page advertj-sement that has been placed in senior resource directories and targeted senior publications to reach seniors with information about biIl payment options, Avista CARES and energy assistance. Energy Fairs: In 2016, Avista hosted one energy fair in Cottonwood, Idaho which reached 45 customers. These outreach events provide information and demonstrations on energy assistance, energy efficiency and home weatherization to Iimited income families and senior citj-zens as well as provided an environment for customers Lo learn about bill payment options and energy Christie, Di 9 Avista Corporation 3 1 2 3 4 5 6 1 8 9 assistance, while offering them tips and toofs to use to heJ-p manage their I j-mited f inancial resources. IV. JOINT APPLICA}ITS' COMMITMENTS 11 9. Have Avista and Hydro One offered cormnitments, as part of their request for approval of the Proposed Transaction, to ensure that Avista's customer service and customer support is preserved and improved folJ.owing the closing' of the transaction? A. Yes. As I have explained in my testimony above, Avista L2 has in place many programs and services designed to provide a 13 hiqh level of customer service, customer satisfaction, and t4 support for our customers. Avista and Hydro One are offering a 15 number of commitments to ensure that Avista's customer service, 76 reliability, and other aspects of the way Avista currently does 71 business, is preserved and enhanced following the closing of 1B the transaction. f am sponsoring Commitment Presence/Community Involvement (Environmental, Renewable Energy, 79 20 Commitments ) , 27 and Energy 22 Commitments), and 53-55 (Community and Low-fncome Commitments).23 24 25 Christi-e, Di 10 Avista Corporation 10 Nos. 9-15 (Local 41 -52 Efficiency Assistance 1 Irocal Presence Comnruni fnvolvement A. Eor Cormnitment No. 9 , \\Avista' s Headquarters" , what have the iloint Applicants cornrritted to as a part of this transaction? A. Through Commitment No. 9, which is governed by the 2 3 4 5 6 1 8 9 Delegation of Avista wilI Authority in Exhibit B to the Merger maintain (a) its headquarters in Agreement, Spokane, its otherWashington; (b) Avista's office focations in each of service territories; and (c) no less 10 in the immediate focation of each of of a significant presence such office Iocations than t7 t2 13 74 15 76 L1 1B 19 20 27 22 what Avista and its subsidiaries maintained immediately prior to completion of the Proposed Transaction. A. Eor Cormritment No. 10 , "Local. Staff ing", what have the iloint Applicants conmitted to as a part of this transaction? A. Through Commitment No. 10, which is governed by the Delegation of Authorj-ty in the Merger Agreement, Avista wiII maintain j-ts staffing and presence in the communities in which Avista operates at l-evel-s sufficient to maintain the provisi-on of safe and reliable service and cost-effective operations and consistent with pre-acquisition levefs. 9. Eor Conunitment No. LL, "Conmunity Contributions", what have the iloint Applicants cornmitted to as a part of this transaction? Christie, Di 11 Avista Corporation 23 I 2 3 4 5 6 1 B 9 A. Through Commitment No. 71, which is governed by the Delegation of Authority in the Merger Agreement, Avi-sta wilI maintain a $4,000,000 annual budget for charitab]e contributions (funded by both Avista and the Avista Foundation) . This is an increase from Avj-sta's average annual contributions in recent years of approximately $2.5 million per year. In addition, a $2.0 million annual contribution wiII be made to the Avista Foundation.3 The Avj-sta Eoundation provides funding to non-profit organizations addressing the needs of communities and citizens served by Avista and AEL&P. The Avista Eoundation also includes a matching gifts program for employees of Avista and AEL&P. A. Eor Comitment No. L2, \\Comnunity Involvement", what have the iloint Applicants conmritted to as a part of this 10 11 T2 13 74 15 transaction? 76 A. Through Commitment No. 72, which is governed by the I'7 Delegation of Authority in the Merger Agreement, Avista will- 1B maintain at feast Avista's existing fevefs of community involvement and support initiatives in its service territories.19 3 The Avista Foundation was formed by Avista Corporation exclusi-vely for charitabfe, educational and scientific purposes within the meaning of Section 501 (c) (3) of the Internaf Revenue Code of 7986. The Avista Foundation i-s overseen by an independent Board of Di-rectors which manages the affairs, property and interests of the Foundation. Christie, Di 72 Avista Corporation 1 2 3 4 5 6 7 B 9 A. Eor Coruaiturent No . L3 , "Economic Development', , what have the Joint Applicants conmritted to as a part of this transaction? A. Through Commitment No. 13, which is governed by the Delegation of Authority in the Merger Agreement, Avista will maintain at least Avista's existing levels of economic development, including the ability of Avista to spend operations and maintenance fundsa to support regional economj-c development and related strategic opportunities in a manner consistent with Avista's past practices. 9. Eor Corunitment No. L4 , \\Membership Organizations,,, 10 72 what have the iloint Applicants conmritted to as a part of this 13 transaction? 74 A. Through Commitment No. 14, which is governed by the 15 11 16 71 1B 19 Delegation of maintain the Authority in the dues paid by it to and membership organizations. accounted for consi-stent with current Regulatory Accounting Merger Agreement, various industry Avista wi-II trade These costs will- continue groups to be past practice. Under Avista's Guidelines, a portion of these 20 dues are included in retail rates, and the remainder is recorded 27 "befow-the-1ine" to a nonoperating account. a Operati-ons and maintenance funds dedicated to economic development and non-utility strategj-c opportunities wil-l- be recorded "be1ow-the-fine" to a nonoperating account. Christie, Di 13 Avista Corporation 1 Q. Eor Cormitrnent No. 15, '\Safety and Reliabi1ity 2 Standards and Service Quality Measures", what have the iloint 3 Applicants comitted to as a part of this transaction? 4 A. Through Commitment No. 15, which is governed by the 5 Defegation of Authority j-n the Merger Agreement, Avista will- 5 maintain Avista's safety and reliability standards and policies 7 and service quality measures in a manner that is substantially B comparable to, or better than, those currently mai-ntai-ned. 9 Q. I[hat do these and other connnitnents suggest by way of 10 Avista's Local Presence and Conrnunity Involvement following the 11 closing of the Proposed Transaction? 72 A. Following the closing, the communities Avista serves 13 wilI see increased charitable contributions and a continuation 74 of the strong support Avista provides in economic development 15 and innovation, which will result in benefits to the customers 16 and the communities Avista serves. They will see fittte or no 11 change in the day to day operations of Avista, as compared to 1B Avista's operations prior to the transaction. 19 The Company wiII continue to operate under the same Avista 20 name. Provisions of the Merger Agreement are designed to ensure 2l that Avista's cufture and its way of doing business wiII 22 continue for the long-term. 23 Christie, Di 74 Avista Corporation 1 Environmental,Renewable Energy, and Energf, Efficiency 2 Q. Eor Comritment No. 47 , "Renewable Portfolio Standard 3 Requirements", what have the iloint Applicants conrrritted to as 4 a part of this transaction? 5 A. Hydro One acknowJ-edges Avista's obligations under 6 applicable renewabl-e portfolio standards, and Avista witl 7 continue to comply with such obligations. 8 Q. Eor Conunitment No. 48, \rRenewabJ.e Energ.y Resourcesr,, 9 what have the iloint Applicants cornmitted to as a part of this 10 transaction? 11 A. Avista wiII acquire all renewable energy resources 72 required by law and such other renewabl-e energy resources as 13 may from time to time be deemed advj-sabl-e in accordance with 14 Avista's integrated resource planning process and applicable 15 regulations. 16 A. For Conunitnnent No. 49, "Greenhouse Gas and Carbon 71 Initiative", what have the iloint Applicants corrmitted to as a 18 part of this transaction? 1,9 A. Hydro One acknowledges Avista's Greenhouse Gas and 20 Carbon Initiatives contained in its current Integrated Resource 2l P1an, and Avista wil-I continue to work with interested parties 22 on such initi-atives. Christie, Di 15 Avista Corporation 1 2 3 4 5 6 1 B 9 a. Report", of this A Avista will report greenhouse gas emissions as Avista began reporting greenhouse gas inventories torequired. the Oregon Department of Ecology and the Envj-ronmental- Protection Agency in 201I, and the Vflashington Department of Ecology in 2072. Avista will continue to submit data for these inventories. Greenhouse gas emj-ssions have and will continue to Por Corrnitment No. 50, \lGreen House Gas Inventory what have the iloint Applicants cormnitted to as a part transaction? 10 al-so be reported to customers through the annual Shared Value 11 Report. 12 A. Eor Comitment No. 51, \rEfficiency Goal.s and 13 Objectives", what have the iloint Applicants conmritted to as a 74 part of this transaction? 15 A. Hydro One acknowledges Avj-sta's energy efficiency 76 goals and ob;ectives set forth in Avista's 2071 Integrated 11 Resource Plan and other p1ans, and Avista will continue its 18 ongoing collaborative efforts to expand and enhance them. 79 Avista has continuously offered energy efficj-ency services 20 since 7918. This is the twenty-third year of the Demand Side 21 Management (DSM) tariff rider, a distribution charge to fund 22 DSM that is now replicated in many other states. The Company's 23 programs are based on providing a financial incentive r or Christie, Di 16 Avista Corporation 1 2 3 4 q 6 1 8 9 "rebate, " for payback l-ess 300 measures customer convenience. across a fulI customer cost-effective efficiency measures than fifteen years. This incl-udes that are packaged into about 30 The Company's programs spectrum. VirtualIy aI1 with a simple approximately programs for are delivered customers have 10 had the opportunity to participate and many have directly benefited from the program offerings. A11 customers have benefited through enhanced resource cost-efficj-encies as a result of this portfolio approach. A. Por Cornraitment No. 52 , \\Optional RenewabJ.e Power Rate", what have the Joint Applicants conmitted to as a part of this transaction? A. Avista will continue to offer renewable power 11 t2 13 14 programs in consuftation with stakeholders. Customers may apply 15 for interconnection with the Company and receive certification 16 of their renewabfe energy system through a Program 71 Administrator.s Upon approval of completion of instal-Iation of 18 a qualifying renewable energy system and meeting 19 interconnection standards, the customer's generation wifl be 20 interconnected and measured by the Company. Generation 2l incentive payments are based on a fiscal year of July 1st of one s The Company's Program Administrator is the Washington State University Extension Energy Program. Christie, Di I1 Avista Corporation 1 2 3 4 5 6 1 year through June 3Oth of the foll-owing year. Incentive payments are made to eligi-bJ-e customers, as determined by the Program Administrator. Comunity and Low-Income Assistance Comitrnents A. For Cornmitment No. 53, \\Comunity Contributions,', what have the iloint Applieants cormitted to as a part of this transaction? A. A one-time $7,000,000 initial contribution to Avista's charitabl-e foundation (Avista Foundation) wil-l- be made at or promptly following closing. This represents a significant increase to the Foundation. This contribution will- i-ncrease the balance from the current Ievel of approximately $9.2 million to $16.2 mil1ion. In addition, as indicated earlj-er, following the closing of the Proposed Transaction, there will- be a $2.0 mil-l-ion annual- contribution to the Avista Foundation. As I 8 9 10 11 t2 13 74 1tr-LJ t6 l1 1B T9 20 2l explained earlier, investment program the Avista Foundation of Avista, which rs a communi-ty funding to non- communiti-es and provides needs ofprofit organizations addressing the citizens served by Avista. 9. For Cornmitment No. 54, \\Low-Income Energy Efficiency Funding'", what have the iloint AppJ-icants connnitted to as a part of this transaction? Christie, Di- 18 Avista Corporation 22 1 2 3 4 trJ 5 1 B 9 A. Avista will continue to work with its advisory groups on the appropriate l-eveI of funding for low income energy efficiency programs. A. Eor Corsnitment No. 55, "Addressing Other Low-Income Customer Issues", what have the .foint Applicants cormitted to as a part of this transaction? A. Avista wilI continue to work wj-th 1ow-income agenci-es to address other issues of low-income customers. A. P1ease briefly su.runarize why this merger is a good to thething for Avista customers, particularly conunitments you have sponsored. A. The proposed merger is designed with reg'ard f olIowi-ng operations 10 11 I2 such that 13 the closing there wi-l-I be little to no change in the 74 of Avista, and customers will see benefits that otherwise would 15 not occur. The transaction is not designed to target the 76 el-imination of ;obs, or cost cutting that may Iead to a L1 deterioration of customer service, customer satisfaction, 1B safety, reliability, or a deterioration of charitable giving, 19 economic development or innovation in the communities Avista 20 serves. As discussed by Avista Witnesses Mr. Thies and Mr. 27 Ehrbar, Avista and Hydro One 22 Avista's retail electric and are proposing to flow through to natural gas customers in Idaho, $31. s23 Washington and Oregon a financial benefit of at least Christie, Di L9 Avista Corporation 1 2 3 4 5 6 1 8 9 mil-lion over a 10-year period, beginning at the time of the merger Morris, closing. Moreover, as discussed by Avista Viitness Mr customers wiIl see additional benefits over time associated with scale and coll-aboration, whil-e avoiding the risk of a potential subsequent acquisition by another party that may not share Avista's culture and values. The communities Avista serves wil-1 see increased charitable contributions and a continuation of the strong support Avista provides in economic development and innovation. Avista and Hydro One employees will see increased opportunities as the two companies pursue efficiencies and innovation through the sharing of technology, best practices and business processes. A. Does this conclude your pre-filed direct testirnony? A. Yes. Christie, Di 20 Avista Corporation 10 11 72 13 74