20051028Avera Exhibit 01.pdf

BEFORE TH IDAHO PUBLIC UTiliTIES COMMISSIONCASE NO. IPC-O5-IDAHO POWER COMPANY
EXHIBIT NO.
WilliAM E. AVERA
QUALIFICATIONS OF
WilliAM E. AVERA
Exhibit WEA-lPage 1 of QUALIFICATIONS OF WILLIAM E. AVERAI received B. A. degree with a maj or in economics fromEmo r y On i ve r sit Y After serving in the United States Navy, Ientered the doctoral program in economics at the Oni versi ty North Carolina at Chapel Hill Upon receiving my Ph. D. ,joined the faculty at the University of North Carolina andtaughtfinancetheGradua te School Business subsequently accepted a position at the University of Texas atAustin where taught courses financial management andinvestment analysis..I then went to work for InternationalPaperCompanyNewYorkCityManagerFinancialEducation,a position in which I had responsibility for allcorporateeducationprogramsfinance,accounting,and
economlCS.
1977 ,joined the staff the Public Utili ty
Commission Texas ( " POCT
If Director the Economic
Research Division..During my tenure at the POCT I managed
division responsible for financial analysis, cost allocation
and rate design economic and financial research and da
processing systems, and I testified in cases on a variety
financial and economic issues..Since leaving the POCT
1979, I have been engaged as a consultant. I have participated
wide range assignments invol ving utili ty-related
matters behalf utilities,industrial customers,
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Exhibit WEA-lPage 2 of municipalities, and regulatory commissions.I have previouslytestified before the Federal Energy Regula tory Commission(" FERC") ,as well as the Federal Communications Commission,the Surface Transportation Board (and its predecessor theInterstate Commerce Commission), the Canadian Radio-Televisionand Telecommunications Commission and regulatory agencies,courts, and legislative committees in over 30 statesWithrespectregula tory policy for QualifyingFacili ties QFs ) and the calculation of avoided costs, I wasserving as Director of Economic Research at the PUCT when thePublic Utility Regulatory Policies Act PURPA") was passed.was appointed technical commi ttee formed theNational Association of Regulatory Utility Commissioners toadvise FERC in developing rules to implement PURPA, including
the calculation of avoided costs In 1980 served as
consul tant task force stakeholders who developed
avoided cost policy in Texas and I played similar role
developing an avoided cost methodology for the State of New
Mexico Over the past 25 years, I have continued to serve as
consul tant indi vidual QFs and industry groups
issues, including avoided cost calculations..
was appointed the PUCT the Synchronous
Interconnection Committee to advise the Texas legislature
the costs and benefits of connecting Texas to the national
electric t ran s rn i s s ion gr ieI.addition served as
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Exhibit WEA-lPage 3 of outside director of Georgia System Operations Corporation , thesystem operator for electric cooperatives in GeorgiaI have served as Lecturer in the Finance Department atthe University of Texas at Austin and taught in the eveninggraduate program at St.. Edward's University for twenty years..addition have lectured econOffilC and regula torytopicsIn programs sponsored by universities and industrygroups..I have taught in hundreds of educational programs forfinancial analysts in programs sponsored by the Associationfor Investment Management and Research, the Financial AnalystsReview,and local financial analysts societies TheseprogramshavebeenpresentedAsia,Europe,and NorthAmerica,including the Financial Analysts SeminarNorthwesternUniversity..hold the Chartered Financial
Analyst (CFAVl1 designation and have served as Vice President
for Membership of the Financial Management Associa tion. I al so
have served on the Board of Directors of the North Carolina
Society of Financial Analysts.I was elected Vice Chairman of
the National Association of Regulatory Commissioners (NARUC)
Subcommittee on Economics and appointed to NARUC's Technical
Subcommi ttee on the National Energy Act..I also have served
as an officer of' various other professional organizations and
societies.A resume containing the details of my experience
and qualifications is attached..
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Exhibit WEA-Page 4 of WilliAM E. AVERAFTNCAP, INC.Financial Concepts and ApplicationsEconO111ic and Financial (~ounsel 3907 Red RiverAustin, Texas 78751(512) 458-4644Fl\X [phone]fincap~texas.netSummary of Qualifications ",-Ph.D. in econon1ics and finance; Chartered Financial Analyst (CF A )~') designation; extensive expertwitness testimony before courts , altel11ative dispute resolution panels , regulatory agencies andlegislative col11mittees; lectured in executive education progralns around the world on ethicsinvestn1ent analysis , and regulation; undergraduate and graduate teaching in business andeconoll1ics; appointed to leadership positions in government , industry, acadelnia , and the military.Emp ymentPrincipalFINCAP, Inc.(Sep. 1979 to present)Financial , econo.111ic and policy consulting to businessand governn1ellt. Perfoffi1 business and public policyresearch, cost/benefIt analyses and financial modeling,valuation of businesses (over 100 entities valued),estitnation of dan1ages , statistical and industry studies.Provide strategy advice and educational services in
public and private sectors, and serve as expert witness
before regulatory agencies, legislative CO111111ittees
arbitration panels , and courts.
Directorf Econon1ic Research
Division,
Public Utility C01lltnission of Texas
(Dec. 1977 to Aug. 1979)
Responsible for research and testitl1ony preparation on
rate of return, rate structure , and econ0111etric analysis
dealing with energy, teleconll11unications , \vater and
sewer utilities. Testified in Inajor rate cases and
appeared before legislative CO111111ittees and served
Chief EconO111ist for agency. Administered state and
federal grant funds. Colnnlunicated frequently \vith
political leaders and representatives from conSUll1er
groups, ll1edia, and investment Co111111unity.
M anager Financia IE ducation
International Paper Coll1pany
Ne\v Y'ork City
(Feb. 1977 to Nov. 1977)
Directed corporate education programs in accounting,
finance , and econolllics. Developed course Inaterials
recruited and trained instructors, liaison within the
co111pany and \vith acade111ic institutions. Prepared
operating budget and designed financial controls for
corporate professional developlncnt prograill.
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Lecturer in FinanceThe University of Texas at Austin(Sep. 1979 to May 1981)Assistant Professor of Finance(Sep. 1975 to May 1977)Assistant Professor oj'Business,University ofN orth Carolina atChapel Hill(Sep. 1972 to JuL 1975)EducationPh., Econon1ics and FinanceUniversity of North Carolina atChapel Hill(Jan. 1969 to Aug. 1972)
A, EconOlnics
Emory University, Atlanta, Georgia
(Sep. 1961 to Jun. 1965)
Exhibit WEA-Page 5 of Taught graduate and undergraduate courses in financial111anagement and investment theory. Conducted researchin business and public policy. Named OutstandingGraduate Business Professor and received variousadministrative appointn1ents.Taught in BBA ~ MBA , and Ph.D. pro gra111 s. Createdproject course in finance Financial Managclnent forWolnen, and pa11icipated in developing Sll1all BusinessManagen1ent sequence~ Organized the N ol1h CarolinaInstitute for InvestJllent Research , a group of fInancialinstitutions that supported acadelnic research. Facultyadvisor to the Media Board, vvhich funds studentpublications and broadcast stations.Elective courses included financial 'fi1anagenlent, publicfinance, l11onetary theory, and econometrics. Awardedthe Stonier Fellowship by the An1erican BankersAssociation and University Teaching Fellowship.Taught statistics , Inacroeconolnics , and InicroeconOlnics.
Dissel1ation: The Geonletric Iv!ean Strategy as a
Theo/J/ a.1'Nfultiperiod Por~folio C"7-hoice
Active in extracuITicular activities, president of the
Barkley F orun1 (debate team), EI110ry Religious
Association and Delta Tau Delta chapter. Individual
awards and tean1 chalnpionships at national collegiate
debate tournaments.
Professional Associations
Received Chartered Financial Analyst (CF A) designation in 1977 ; Vice President for Melnbership,
Financial M'anageJl1ent Association; President , Austin Chapter of Planning Executives Institute;
Board of Directors, NOl1h Carolina Society of Financial Analysts; Candidate CUITiculull1 Conlmittee~
Association for lnvestlnent Mallagcll1ent alld Research; Executive Colnlnittee of Southern Fillallce
Association; Vice C:hair, Staff SUbCOTIlmittee on Econon1ics and 'National Association of Regulatory
Utility ComJl1issioners (NARUC);Appointed to NARUC Technical SUbCOnl111ittee on the National
Energy Act
Teachinq in Executive Education Proqrams
Universitv-Sponsorecl Progranls:Central Michigan University~ Duke University, Louisiana State
University ,National DefenseUni versity , NationallJniversity of Sillgapore , T'exas A&MUniversity,
University of Kansas, University of North Carolina , University of Texas. EXHIBIT NO.
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Exhibit WEA-Page 6 of Business and Governnzent-Sponsored Progranzs:Advanced Senlinar o'n Earnings RegulationAmerican Public Welfare Association~ ,Association for InvestJTIent Managenlent and R,esearch~Congressional F ello\vs Progran1 Cost of Capital W orkshop,Electricity Consun1ers ResourceCouncil, Financial Analysts Association of Indonesia, FiIlallcial Analysts Review, FinancialAnalysts Seminar at Northwestern 'Uni'lersity, Cyovemor s ,Executive Development Program ofTexas, Louisiana Association of Business and Industry, National Association of PurchasingManaOCll1ent National A.ssociation of Tire Dealers Plallnincr Executives Institute School of-'- Banking of the South, State of Wisconsin Investnlent Board , Stock Exchange of Thailand, TexasAssociation of State Sponsored Con1puter Centers, Texas Bankers ' Association Texas BarAssociationTexas Savings and Loan Leaf,rue , Texas Society of CP,Tokyo Association ofForeign Banks, Union Bank of S\vitzerland S. Departn1ent of State , U.S. Navy, U.S. VeteransAdministration, in addition to Texas state agencies and major corporations.Presented papers for Mills B. Lane Lecture Series at the University of Georgia and HeubnerLectures at the University of Pennsylvania. Taught graduate courses in finance and economics inevening prograJll at S1. Edward's University in Austin fron1 January 1979 through 1998.E.!Pert Witness Testimon~Testified in over 200 cases before regulatory agencies addressing cost of capital, rate design , andother econolnic and financial issues.edera I Ag:encies ederal C~om1nunications C:oTI1TIlis sian , F ederalEnergyRegulatory C:OTI1TI1issionSurface TranSpoliation Board Interstate Colllmerce Commission and the CanadianRadio- Television and TelecO1111nUnications Com111ission.
State Re f!ulatorvAJ!encies: Alaska, Arizona, Arkansas, California, Colorado, Connecticut
Delaware , Florida, Ha\vaii , Idaho , Illinois , Indiana, Kansas , Maryland, Michigan, Missouri
Nevada, New Mexico , Nonh Carolina, Ohio , Oklahoma, Oregon , Pennsylvania, South Carolina
Texas, Virginia, Washington , West Virginia, and Wisconsin.
TestifIed in over 30 cases before federal and state courts, arbitration panels, and alternative dispute
tribunals (over 60 depositions given) regarding damages, valuation , antit111st liability, fiduciary
duties , and other econo111ic and financial issues.
Board Positions and Other Professional Activities
Audit ComTIlittee and Outside 'Director, Georgia System Operations Col11oration (electric system
operator for member-o\vued electric cooperatives in Georgia); Chainnan , Board of Print Depot , Inc.
and FINCAP , Inc.; Co-chair, Synchronous Interconnection COlTIll1ittee, appointed by Governor
George Bush and PublicU'tility Colnmission of Texas; Operator of AAA Ranch , a certified organic
producer of agricultural products; ,Appointed to Organic Livestock Advisory C:omlnittee by Texas
Agricultural COnlJllissioner Susan Combs; Appointed by Texas Railroad C(lmmissioners to study
group for The UP/5~P Merger: An Assesslnent o.f'the lrnpacts on the 5~tate ~(Te:fas; Appointed by
Hawaii Public Utilities C:onl111ission to teanl revie\ving affiliate relationships of Ha\vaiian Electric
Industries; Chainnan Energy Task Force, Greater Austin-San Antonio Corridor Council; Consultant
to Public Utility Coll11nission of Texas on cogeneratioll policy and other Inatters; Consultant to
Public Service Comnlission of New Mexico on cogeneration policy; Evaluator of Energy Researcll
Grant Proposals for Texas Higher Education (~oordinating Board. EXHIBIT NO.
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Exhibit WEA-Page 7 of Community ActivitiesBoard Mell1ber, Sustainable Food Center; Chair, Board of Deacons , Finance Coll11nittee, and ElderCentral Presbyterian Church of Austin; Founding Mclnbcr , Orangc-ChathalTI County (N.) LegalAid Screening C::ommittee.Militar'lCaptain, U.S. Naval Reserve (retired after 28 years service); Colnnlanding Officer, Naval SpecialWarfare (SEAL) Engineering Support Unit; Officer-in-charge of SWIFT patrol boat in Vietnalll;Enlisted service as weather analyst (advanced to second class petty officer).MonographsEthics and the Investrnent Projessional (video,\vorkbook and instructor s guide) and EthicsC7hallengeToda)) (video), Association for Investnlent Managenlcnt and Research (1995)Definition of Industry Ethics and Development of a Code" and H Applying Ethics in the RealWorld" in Good Ethics: 'The Essential Elenlent t:?la Firn1 'sSuccess~Association for InvestmentManagenlel1t and Research (1994)On the Use of Security Analysts ' Gro\vth Projections in the DCF ModeL" \vith Bruce H.Fairchildin Earnings Regulation Under It!tlation~ J. 'R. Foster and S. R.Holmberg, cds. Institute for Studyof Regulation (1982)An Exalnination o.l'the CYoncept l?f'UsingRelative Custo7ner CYlassRisk to ~)et TargetRates o.l'Return
in Electric Cost-o.l-Service Studies \';Tith Bruce H. Fairchild , Electricity Consumers Resource
Council (ELCON) (1981); portions reprinted in Public Utilities Fortnight/)) (Nov. 11 , 1982)
Usefulness of (:un~ent Values to Investors and Creditors,Research SYtud)) on Current-Value
Accounting lrfeasurenlents and UtiliO;' George M. Scott, ed., Touche Ross Foundation (1978)
The Geo'111etric Mean Strategy and Co'mmon Stock Investlnent Managelnent \rvith He'nry A.
Latane L(fe Insurance Investment Policies, David Cuml11ins~ cd. (1977)
lnvestnl,ent Conlpanies: Ana(vsis q(Current Operations and Future Prospects with J. Finley L"
and (ilenn W ood American C:ollege ofLife Undenvriters (1975)
Articles
Should Analysts 0\Vl1 the Stocks they Cover?" The Financial Journalist (March 2002)
Liquidity,Exchange Listing~ and Common Stock ,PerfoIDlance," ,vith John C. Groth and elTy
Cooper Journal ~fEconoJnic5' anelBusiness (Spring 1985); reprinted by N ationalAssociation of
ecuri tyDe al erg
The Energy Crisis and the HoJTIeo\vner: The Grief Process,rexas Business RevielV (Jan.Feb.
1980); reprinted in The Ener&ryi Picture: Problenls anti Prospects J. E. Pluta, cd., Bureau of
Business Research (1980)
Use of IFPS at the Public Utility CO1111nissiol1 of Texas~Proceeclings oj'the IFP/) (/)~ers GraUL)
Annual JJleeting (1979)
Production Capacity Allocation: Conversion , CWIP and One-An-Hed ECOnOTIlics Proceedings qt'
the MARUC Biennial ReGulator ' In orn1ation Con erence 1978 EXHIBIT NO.Jl Jt CASE NO. IPC-O5-
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Exhibit WEA-Page 8 of Some Thoughts on the Rate of Retul11 to Public Utility Companies~" with Bruce H. Fairchild inProceedings oj'the IvARUC Biennial RegulatolY Information Col'~ference (1978)A Ne,v Capital Budgeting Measure: The Integration of Time , Liquidity, and Uncertainty," withDavid Cordell in Proceedings qfthe Southl'Vestern Finance ",4ssociation (1977)Usefulness of Current Values to Investors and Creditors " in l"?flation Accounting/lnde..Yin g andStock Behavior (1977)Consumer Expectations and the EconolllY," Texas Business Reviell' (Nov. 1976)Portfolio Perfornlance Evaluation and Long-run Capital Growth " with Henry A. Latane Procee(iings oj'the Eastern Finance Association (1973)Book revie\vs in Journal oj'Finance and Financial Revie"v, Abstracts for CFA Digest.Articles Carolina Financial Tinles.Selected Papers and PresentationsThe Who, What , When, How, and Why of Ethics , San Antonio Financial i\nalysts Society (Jan,, 2002). Sinlilar presentation given to the Austin Society of Financial Analysts (Jan. 17 , 2002)Ethics for Financial Analysts " Sponsored by (~anadian Council of Financial Analysts: delivered inCalgary, Edmonton Regina, and Winnipeg, June 1997. Similar presentations given to AustinSociety of Financial Analysts (Mar. 1994), San Antonio Society of Financial Analysts (Nov.1985), and St. Louis Society of Financial Analysts (Feb. 1986)Cost of Capital for Multi-Divisional Corporations," Financial Managelnent Association, NewOrleans, Louisiana (Oct. 1996)Ethics and the Treasury Function " Government Treasurers Organization of Texas, Corpus ChristiTexas (Jun. 1996)
A (~ooperative Future " Iowa Association of Electric Cooperatives, Des M:oines (Decenlber 1995).
Sinlilarpresentations given to National G & T Conference , Irving, Texas (June 1995), Kentucky
Association of Electric Cooperatives Allllual Meeting, Louisville (Nov. 1994), Virginia
Maryland , and Delaware Association of Electric Cooperatives Annual Meeting, Richmond (July
1994), and Carolina Electric Cooperatives Annual Meeting, Raleigh (Mar. 1994)
lnfo1111ation Superhighway Warnings: Speed Bulnps on Wall Street and Detours fl.Oll1 the
Economy," Texas Society of Certified Public Accountants Natural (las Telecoill)nunications and
Electric Industries Conference, Austin (Apr. 1995)
Economic/Wall Street Outlook " Carolinas Council of the Institute of Managell1ent Accountants,
Myrtle Beach South Carolina (May 1994). SiJnilar presentation given to Bell Operating
C Oll1p any Accounting Witness Conference , Santa Fe , New Mexico (Apr. 1993)
:Regulatory Developments in T elecommunications~ "Regional Holding Company :Financial and
Accounting Conference , San Antonio (Sep. 1993)
Estimating the Cost of Capital During the 1990s: Issues and Directions " The 'ational Society of
Rate of Retul11 Analysts; Washington; D.C. (May 1992)
Making Utility Regulation Work at the Public Utility Co111111is8ion of Texas " Center for Legal and
Regulatory Studies , University of Texas, A ustin (June 1991)
Can Re(fulation COn1 ete for the Hearts and Minds of Industrial Custolners " E111er inn Issues of
Colnpetition in the Electric Utility Industry Conference; Austin (May 1988)
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Exhibit WEA-Page 9 of The Rolc of Utilities in Fostering New Energy Technologies," Emerging Energy Technologies inTexas Conference , Austin (Mar. 1988)The Regulators ' Perspective," Bellcore E"conomicAnalysis Conference , San Antonio (Nov. 1987)Public Utility COlllll1issions and the Nuclear Plant Contractor 'I' Collstruction LitigationSuperconferenceLaguna Beach , C:alifornia (Dec. 1986)Developnlent of Cogeneration Policies in Texas " University of Georgia Fifth Annual PublicUtilities Conferellce, Atlanta (Sep, 1985)W)lc CT +''"u Sale .le. --- O . -.lce tOll 198-- __-_- vv - -, ---- b ---- --- -- /___- ,- .-- 'Asymmetric Discounting of Information and Rclative Liquidity: Some :Empirical vidence forCommon Stocks " (,yith John Groth and Kerry Coopcr), Southern Finance Association , Ne"'lOrleans (Nov. 1982)iO'Used and Useful Planning Models, "Planning Executive Institute, 27th C:orporate :PlanningConference, Los Angeles (Nov. 1979)Staff Input to Comnlission 'Rate of Return Decisions " The National Society of Rate of ReturnAnalysts, Ne\v York (Oct. 1979)Electric Rate Design in Texas " Southwestern Economics Association , Fort Worth (Mar. 1979)Discounted Cash Life: A Ne\v Measure of the TinIe Dinlcnsion in Capital Budgeting," with DavidCordell, Southern Finance Association, Ncvv Orleans (Nov. 1978)The Relative Value of Statistics of Ex Post Common Stock~ Distributions to Explain Variancewith Charles G. Maltin , Southern Finance Association , Atlanta (Nov. 1977)ANOVA Representation of C:omlnon Stock RetunlS as a FranIework for the Allocation ofPortfolio ManagCJnel1t Effort " \vith Charles G. Martin , Financial ManagenIent Association
Montreal (Oct. 1976)
A Gro~1h-Optinlal Portfolio Selection Model with Finite Horizon " with Henry A. Latane
American Finance Association, San Francisco (Dec. 1974)
An OptinIal ,Approach to the Finance Decision vvith Henry ,A. Latane Southern Finance
Association, Atlanta (Nov, 1974)
A Praglnatic Approach to the Capital Structure Decision Based on Lo'ng-Run Gro\vth
, "
\vith Henry
Latane , Financial Management Association , San Diego (Oct. 1974)
Multi-period Wealth Distributions and Portfolio Theory," Southenl Finance Association , Houston
(Nov. 1973)
Growth Rates Expected Retunls, and Variance in Portfolio Selection and Perforn1ance
Evaluation " \vith Henry A. Latane , Econometric Society, Oslo , Norvvay (Aug. 1973)
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