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IDAHO PUBLIC UTILITIES COMMISSIOND¡\H()F~-.)E3/.ft.iTILlT\Ef:, Ci)/ih:
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION FOR THE ) CASE NO. AVlJE-09-1/
AUTHORITY TO INCREASE ITS RATES) AVU-G-09-1
AND CHARGES FOR ELECTRIC AND )
NATURAL GAS SERVICE TO ELECTRIC )
AND NATURAL GAS CUSTOMERS IN THE )STATE OF IDAHO. )
)
)
DIRECT TESTIMONY OF CECIL Y VAUGHN
IDAHO PUBLIC UTILITIES COMMISSION
MAY 29,2009
1 Q.Please state your name and address for the
2 record.
3 A. My name is Cecily Vaughn. My business address
4 is 472 West Washington Street, Boise, Idaho.
5 Q.By whom are you employed and in what
6 capacity?
7 A.I am employed by the Idaho Public Utilities
8 Commission (Commission) as an auditor in the Utilities
9 Division.
10 Q.What is your educational and experience
11 background?
12 A.I graduated from Washington State University
13 in 1974 with a Bachelors of Science degree in Veterinary
14 Science i I received my degree as a Doctor of Veterinary
15 Medicine at the same time. I practiced as a veterinarian
16 in the State of Washington until approximately 1987.
17 From 1993 until 1996 I attended the College of Business
18 and Economics at the University of Arkansas in
19 Fayetteville, Arkansas. From 1996 until 1997 I studied
20 at the College of Business at Boise State University with
21 an emphasis in accounting. I passed the Uniform CPA exam
22 in the fall of 1997 i I am currently a licensed CPA in the
23 State of Idaho.
24 I was employed as a financial analyst by
25 Hewlett Packard from 1998 until 2000. In that position I
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
VAUGHN, C (Di) 1
STAFF
1 provided sole financial support for the HP test lab
2 located in Boise, a cost center with an annual budget in
3 excess of $50 million. I was solely responsible for
4 coordinating the semi-annual budgeting process, for
5 developing and implementing the allocation system used to
6 distribute costs to multiple profit centers, and for
7 ensuring that costs incurred were appropriate and met
8 budgetary goals. During this time I also served as
9 inventory analyst for the Personal LaserJet Division, a
10 $2 billion per year profit center. In this role, I was
11 responsible for accurate valuation of worldwide inventory
12 and for removal of intra-corporate profit included in
13 inventory value.
14 From 2000 until 2003 I was employed as
15 Grants Accountant (Financial Specialist) for the Center
16 for Geophysical Investigation of the Shallow Subsurface
17 at Boise State UniversitYi I was promoted to Senior
18 Financial Specialist in 2002. During my employment at
19 BSU, I was responsible for all aspects of grant
20 accounting for the Center, including budgeting,
21 submission, and ensuring that grant funds were expended
22 and accounted for in accordance with funding agency
23 regulations. I also assisted in the preparation of the
24 F&A (Facilities and Administration) request used to set
25 the overhead rate applied to aii Federal Grants awarded
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
VAUGHN, C (Di) 2
STAFF
i the University.
2 I have been employed by the Commission as an
3 auditor since June 2007. I attended the annual
4 regulatory studies program sponsored by the National
5 Association of Regulatory Utili ties Commissioners (NARUC)
6 at Michigan State University in August 2007. In
7 addition, I have attended numerous professional seminars
8 and workshops related to energy, utility regulation, and
9 accounting.
10 SUMY
11 Q.What is the purpose of your testimony?
12 A.The purpose of my testimony is to present
13 the Staff-recommended revenue increase to base rates for
14 the Avista Utilities' Idaho electric jurisdiction. First
15 I will present adjustments recommended by Staff that
16 affect the Idaho electric net operating income and rate
17 base. Finally I will present the model that develops the
18 Idaho electric revenue requirement and shows how the
19 Staff recommendation differs from the revenue requirement
20 proposed by Company witness Andrews in her pre-filed
21 testimony at page 5, line 10.
22 Q.In addition to the Company revenue
23 requirement, does your testimony address any other
24 issues?
25 A.Yes. I reviewed the allocation and
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
VAUGHN, C (Di) 3
STAFF
1 jurisdictional separation methodologies used. by the
2 Company to assign costs to the different geographic
3 jurisdictions (Idaho, Oregon, or Washington) and to the
4 different functional areas (electric or gas). My review
5 of these methodologies included (a) development of the
6 four-factor allocation factors and (b) the jurisdictional
7 separation methodology and it's linkage to the cost of
8 service methodology.
9 Q.Did your review of these areas affect the
11
10 revenue requirement proposed by Staff?
12
A.No.
14
13 allocation models at this time?
Q.Does Staff recommend any changes to these
A.No. The allocation models employed by the
15 Company have been in use for some time. Staff reviewed
16 these models and believes the methodology to be
17 reasonable and does not recommend any change to the
19
18 allocation methodology at this time.
20
Q.Are you sponsoring any exhibits?
A.Yes, I am sponsoring Exhibit Nos. 116
21 through 118.
22 STAFF ADJUSTMNT SUMY AN RENU REQUIRENT
23 Q.Please describe the method by which Avista
25
24 developed its forecast test year.
A.Avista developed a pro formed year for the
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
VAUGHN, C (Di) 4
STAFF
2
1 period of July 1, 2009 through June 30, 2010. This year
was developed as follows.(1) The actual data for the
3 12-month period ending September 30, 2008 was modified by
5
4 routine regulatory and normalization adjustments to
develop the base year.(2) Base year amounts were
6 adjusted by category to develop the pro formed 2009-2010
7 year. The model for the development of the historical
8 test year is shown in the electronic workpapers provided
9 with this testimony.
10 Q.Please explain how Staff audited and made
12
11 adj ustments to the Company pro formed year.
A.First, Staff audited the base year data.
13 Second, Staff evaluated the various pro formed
14 adjustments proposed by the Company to determine if the
15 adj ustments were known and measurable and to determine if
16 the adjustments were reasonable for ratemaking purposes.
17 Q.Does Staff recommend any changes to the pro
19
18 formed year?
A.As discussed by Staff witness Lobb, Staff
20 believes the year ending December 31, 2009, is more
21 reasonable for ratemaking purposes. Therefore Staff
22 recommends that pro formed adjustments, with the
23 exception of power supply, be consistent with the year
24 ending December 31, 2009.
25 Q.Please summarize Staff's recommendations in
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
VAUGHN, C (Di) 5
STAFF
2
1 this case.
A.Staff recommends a total electric revenue
3 requirement of $250,621,000. This is the sum of
4 $241,999,000 adjusted test year revenues plus the
5 $8,622,000 revenue deficiency calculated by Staff. This
6 results in a 3.91% overall increase in base revenues.
7 Staff's recommended revenue requirement is based on an
8 Idaho electric rate base of $564,144,000 i total electric
9 operating income of $42,721,000 i total electric operating
10 expenses of $186,708,000 for the Idaho jurisdictioni and
11 a rate of return of 8.55%.
12 Although Staff recommends an increase of
13 3.91% in base rates, Staff also recommends that this
14 increase be offset by a decrease in the Power Cost
15 Adjustment (PCA) for a net average increase of zero. The
16 decrease in the PCA is discussed further by Staff witness
17 Hessing in his testimony.
19
18 Sumary of Adjustments
20
Q.Please explain Exhibit No. 116.
A.Exhibit No. 116 consists of two pages.
21 Column (c) on page 1 summarizes the calculation of the
22 $8,622,000 revenue requirement at the 8.55% rate of
23 return recommended by Staff. Staff witness Carlock
24 discusses the cost of capital and rate of return in her
25 testimony. Column (b) shows the calculation of the
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
VAUGHN, C (Di) 6
STAFF
1 revenue requirement proposed by the Company at an 8.80%
2 rate of return. Column (d) shows the difference between
3 the Company proposal and Staff's recommendation.
4 Q.Please explain Exhibit No. 116, page 2.
5 A.Exhibit No. 116, Page 2, Column (c) shows
6 the derivation of the net operating income to gross
7 revenue conversion factor used by Staff and compares the
8 conversion factor to that used by the Company as shown in
9 Column (b). The only difference between the Company
10 conversion factor and that used by Staff is due to a
11 change in Commission regulatory fees and appears on line
12 (4). This change is discussed further in Staff witness
13 English's testimony.
14 Q.Please explain Exhibit No. 117.
15 A.Exhibit No. 117 consists of two pages and
16 compares the pro forma electric operating results and
17 rate base recommended by Staff to that proposed by the
18 Company for the Idaho jurisdiction as described by
19 Company witness Andrews in her prefiled testimony at page
20 14, line 15, through page 15, line 8.
21 Column (b), pages 1-2, of Exhibit No. 117
22 shows the pro forma results of operations as proposed by
23 the Company under existing rates. Column (c) shows the
24 revenue increase proposed by the Company to earn an 8.80%
25 rate of return. Column (d) reflects pro forma electric
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
VAUGHN, C (Di) 7
STAFF
1 operating results with the Company-proposed increase of
2 $31,233,000. Column (e) shows the adjustments Staff
3 believes should be made to the Company's pro forma
4 results of operations. Column (f) shows the pro-forma
5 total results of operations recommended by Staff. Column
6 (g) reflects the revenues and related expenses required
7 for the Company to earn the recommended 8.55% rate of
8 return. Column (h) shows the pro forma electric
9 operating results with the Staff-recommended increase of
10 $8,622,000.
11 Q.Please explain Exhibit No. 118.
12 A.Exhibit No. 118 summarizes the adjustments
13 recommended by each Commission Staff member. Exhibit No.
14 118 consists of 4 pages and lists all adjustments
15 recommended by Staff that affect revenue requirement.
16 Page 1 of Exhibit No. 118 summarizes total adjustments
17 recommended by Staff and shows the impact of the
18 adjustments on net operating income and rate base. Pages
19 2-4 list the individual adjustments recommended by Staff
20 and also shows how each individual adjustment affects net
21 operating income and rate base.
22 Page 1 of Exhibit No. 118 summarizes total
23 adjustments for each Staff witness. Column (b) shows the
24 pro formed revenues, expenses, net operating income and
25 rate base as proposed by the Company. Column (c) shows
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
VAUGHN, C (Di) 8
STAFF
1 the total of all adjustments recommended by Staff witness
2 English. Adjustments recommended by Mr. English have no
3 effect on revenues, decrease electric expense by
4 $3,132,000, and increase net operating income by
5 $2,036,000 i there is no impact on rate base. Staff
6 witness English discussed these adjustments in his
7 testimony. Column (d) shows the total of all adjustments
8 recommended by Staff witness Leckie. Adjustments
9 recommended by Mr. Leckie have no effect on revenues,
10 decrease electric expense by $2,113,000, and increase net
11 operating income by $1,374,000. Mr. Leckie recommends
12 reducing rate base by $14,832,000. He discusses these
13 adjustments in his testimony. Column (e) shows the total
14 of all adjustments recommended by Staff witness Sterling.
15 Adj ustments recommended by Mr. Sterling decrease revenues
16 by $11,670,000 and decrease electric expense by
17 $25,886,000, thus increasing net operating income by
18 $9,241,OOOi Mr. Sterling's adjustments have no impact on
19 rate base. Staff witness Sterling discussed these
20 adjustments previously in his testimony.
21 Column (f) shows the total of all
22 adjustments recommended by me. These adjustments
23 increase revenues by $509,000, increase electric expense
24 by $1,492,000, and so decrease net operating income by
25 $792,000 i rate base is increased by $1,542,000. Column
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
VAUGHN, C (Di) 9
STAFF
1 (g) shows the pro formed revenues, expenses, net
2 operating income, and rate base recommended by Staff to
3 be used in calculation of the revenue requirement in this
4 case.
5 Q.Please explain pages 2-4 of Exhibit No. 118.
6 A.Pages 2-4 show each adjustment recommended
7 by Staff witnesses. Columns (c-o) and Column (r) show
8 each adjustment recommended by Staff witness English.
9 Column (q) and Columns (s-t) show the individual
10 adjustments recommended by Staff witness Leckie. Column
11 (p) shows the adjustments to power supply costs
12 recommended by Staff witness Sterling. Columns (u-v)
13 show the adjustments that I recommend. Column (w) shows
14 the pro formed revenues, expenses, net operating income,
15 and rate base recommended by Staff to be used in
16 calculation of the revenue requirement in this case. Row
17 (3) shows the workpaper reference for each of the
18 individual adjustments.
19 Q.Please explain the adj ustments you recommend
20 in Exhibit No. 118, Columns (u-v).
21 A.Column (v) of Exhibit No. 118 shows the
22 production property adjustment. This Staff adjustment
23 mitigates other Staff changes and modifies the Company's
24 production property adjustment. This adjustment
25 increases revenues by $509,000, increases electric
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
VAUGHN, C (Di) 10
STAFF
1 expenses by $1,492,000, and thus decreases net operating
2 income by $639,000. In addition this adjustment
3 increases rate base by $1,542,000. This calculated
4 adjustment corrects a timing difference between the
5 forecast load growth and the time rates are expected to
6 go into effect. This adjustment is discussed further in
7 Staff witness Hessing's testimony.
8 Column (u) shows the debt reconciliation.
9 This adjustment restates debt interest by using the Staff
10 proposed pro forma weighted average cost of debt and
11 applying it to Idaho's pro forma level of rate base.
12 This calculation produces a pro forma level of tax
13 deductible interest expense. The federal income tax
14 effect of the restated level of interest for the test
16
15 period decreases Idaho net operating income by $153,000.
Q.Does this conclude your direct testimony in
18
17 this proceeding?
19
20
21
22
23
24
25
A.Yes, it does.
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
VAUGHN, C (Di) 11
STAFF
A VISTA UTILITIES
Calculation of General Revenue Requirement
IDAHO - Electric System
AVU-E-09-1
Line
No.
As fied by Company
(OOO's of
Dollars)
b
Staff
Recommendation
(OOO's of
Dollars)
c
Description
a
1 Pro Forma Rate Base excl Kettle Falls $577,434 $564,144
2 Proposed Rate of Return 8.800%8.550%
5 Net Operating Income Requirement $50,814 $48,234
6 Pro Forma Net Operating Income $30,863 $42,721
7 Net Operating Income Deficiency $19,951 $5,513
8 Conversion Factor 0.638787 0.639336
IRevenue Requirement $31,233 ~$8,62219
10 Total General Business Revenues $220,252 $220,252
11 Percentage Revenue Increase 14.18%3.91%
Staff
vs.
Company
Change
d
($13,290)
-0.250%
($2,580)
$11,858
($14,439)
0.000549
($22,611)~
$0
-10.27%
Exhibit No. 116
Case No. A VU-E-9-09-l/
AVU-G-09-1
C. Vaughn, Staff
OS/29/09 Page 1 of2
A VISTA UTILITIES
CALCULATION OF CONVERSION FACTOR: IDAHO ELECTRIC
AVU-E-09-1
Line No. a
1 Revenues
2 Expense:
3 Uncollectibles
4 Commission Fees
5 Idaho Income Tax
6 Total Expense
7 Net Operating Income Before FIT
8 Federal Income Tax (! 35.00%
9 REVENUE CONVERSION FACTOR
For Twelve Months Ended
September 30, 2008
b
1.000000
For Twelve Months Ended
December 31, 2009
c
1.000000
0.002528 0.002528
0.002507 0.001662
0.012216 0.012216
0.017251 0.016406
0.982749 0.983594
0.343962 0.344258
0.638787 0.639336
Exhibit No. 116
Case No. A VU-E-9-09-l/
AVU-G-09-1
C. Vaugh, Staff
OS/29/09 Page 2 of 2
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A VISTA UTLmES
ELECTC RESULTS OF OPERATION
IDAHO RESTATED RESUTS
AVU-E-09-1
(OOO'S OF DOLLAS)
Staff Staff S1a S1a
WIss WIess Wiess WIss Starr
DESCRIPTION D.Engilsh J.Lec1d R.SlerUng C. Vaughn Total
Totl Totl Totl Tot
a b d f g
4 REVENUS
5 Tota Gener Buses S220,107 SO SO SO SO S220,I07
6 Interdeparenta Saes 145 0 0 0 0 S145
7 Sales for Resale 27,610 (11,670)476 S16,416
8 Tota Saes of Electcity 247,862 0 0 (11,670)476 S236,668
9 Other Revenue 5,298 33 S5,331
10 Tota Electc Revenue 253,160 0 0 (11,670)509 S241,9"
0 0 0 0 SO
11 EXPENSES 0 0 0 0 SO
12 Producton and Trsion 0 0 0 0 SO
13 Opertig Exenes 64,401 (1,61)(1,063)(8,493)667 S53,898
14 Puchased Power 74,664 0 0 (17,569)716 S57,811
15 Deprecition and Amorttic 16,634 0 (1.077 0 121 S15,678
16 Taxes 6,123 0 0 0 0 S6,123
17 Tota Production & Trn 161,822 (1,613)(2,140)(26,062)1.504 S133,511
0 0 0 0 SO
18 Ditrbution 0 0 0 0 SO
19 Operti Expes 9,627 (11)0 0 0 S9,514
20 Deeciation 10,048 0 0 0 0 S10,048
21 Taxes 2,986 40 27 176 (12)$3,217
22 Tota Distrbution 22,661 (75)27 176 (12)S22,777
0 0 0 0 SO
23 Customer Accountig 3,484 (34)0 0 0 $3,450
24 Customer Serce & Inform.tioi 1,546 (3)0 0 0 $1,53
25 Sales Expenses 274 (3)0 0 0 S271
0 0 0 0 SO
26 Admintrtive & Geer 0 0 0 0 SO
27 Operti Exenes 21,557 (1,405)0 0 0 S20,152
28 Deprecition 4,867 0 0 0 0 $4,867
29 Taxes 135 0 0 0 0 S135
30 Tota Adin. & Ge 26,559 (1,405)0 0 0 S25,154
31 Tota Electrc Exen 216,35 (3,13)(2,11)(25,886)1,492 S186,706
0 0 0 0 SO
32 OPERATIG INCOME BEFOI 36,815 3,132 2,113 14,216 (983)S55,293
33 0 0 0 0 SO
34 FEDERA INCOME TAX 0 0 0 0 SO
35 Curent Accr 579 1,096 739 4,975 (190)S7,1"
36 Deferred Income Taxes 5,373 0 0 0 0 $5,373
0 0 0 0
0 0 0 0
37 NET OPERATIG INCOME 530,863 I S2,036 1 S1,3741 S9,241 I (s792)1 $42,721 I
0 0 0 0 so
40 RATE BASE 0 0 0 0 SO
41 PLANT IN SERVICE 0 0 0 0 SO
42 Intable S4O,744 SO (SI5.358)SO SO $25,386
43 Production 371,398 0 (2,435)0 1.953 S370,916
44 Tramission 165,657 0 0 0 0 S165,657
45 Ditrbution 390,133 0 0 0 0 S390,133
46 Geer 61.178 S61,178
47 Tota Plat in Serce 1,029,110 (17,793)1,953 SI,013,270
48 ACCUMATED DEPRECIK 352,675 (110)27 $352,592
49 ACCUM. PROVISION FOR AI 4,472 S (145)S4,327
50 Tota Acci. Derecition &357,147 S (255)S27 S356,919
51 GAI ON SALE OF BUlLDlNI (252)0 0 -S252
52 DEFERRD TAXES (94,277 S2,706 S(384)-$91,955
0 0 0
53 TOTAL RATE BASE S577,434 SO (SI4,832)SO SI,542 1 $564,144 I
Exhibit No. 118
Case No. A VU-E-9-09-1/
AVU-G-09-1
C. Vaughn, Staff
OS/29/09 Page 1 of 4
Exhibit No. 118
Case No. A VU-E-9-09-1/
AVU-G-09-1
C. Vaughn, Staff
OS/29/09 2 of 4
A VISTA UTILITIES
ELECTRC RESULTS OF OPERATIO
IDAHO RESTATED RESULTS
AVU-E-09-1
(OOO'S OF DOLLARS)
StatT StatT StatT StatT StatT StatT StatT StatT StatT
IPUC Ross Court O&M Leal PF Asset Power Supply Spokane River Colstrip Mercury Montana
DESCRTION Fees omceBld Ex enses Ex M mt ReJicensin Emiss.O&M Lease
D. Euglish D. English D. English D. English D. English R. Sterling J. Lekie D. English J. Leckie
a k I m n 0 p q
Sta SIat0 Sta 1 Sta2 SIat3 Sia14 SlamS Sta6 Sta7
4 REVENUS
5 Tota General Business SO
6 Interdeparenta Sales 0
7 Sales for Resale I (11.670) I
8 Tota Sales of Electrcity 0 0 0 0 (11,670)0
9 Oter Revenue
io Tota Elecc Revenue 0 0 0 0 (11,670)0
11 EXPENSES
12 Production and Trasmission
13 Operaiing Expenses (1,013)(2~)1 (8.493)1 S(I,063)(436)0
14 Purchased Power 0 (17,569)0
is Depreciation and Amortizatic 0 0 0 S (1,037 0
16 Taxes 0 0 0
17 Tolal Produciion & Trasn 0 (1,013)(28)(26.062)(2.100)(436)0
18 Disiñbuton
19 Operating Expeses 0 0 (59)0 0
20 Deprecation 0 0 0 0 0
21 Taxes 2 2 12 0 I 176 26 0
22 Total Distrbution 2 12 0 (58)176 26 0
23 Customer Accnting 0 0
24 Customer Service & InformatiOl 0 0 0 0 0 0
25 Sales Expenses 0 0 0 0 0 0
0
26 Administve & Generl 0 0 0 0
27 Operating Expenses (139)(137)0 (12)0 0 0
28 Depreciation 0 0 0 0 0 0
29 Taxes 0 0 0 0 0 0
30 Toial Admin. & Genera (139)(137)0 (12)0 0 0 0
31 Tolal Electc Expeses (13)(137)(1,001)(12)(86)(25.886)(2,074)(431)0
32 OPERATIG INCOME BEFOl 137 137 1,001 12 86 14,216 2,074 431 0
33
34 FEDERA INCOME TAX
35 Current Accrual 48 47 351 4 30 4.975 S726 LSI 0
36 Deferred Income Taxes 0 0 0 0 0 0 0 0
SI,348 I S280 I SO I37NET OPERATIG INCOME S89 I S90 I S650 I S8 I S56 I S9.241
40 RATE BASE
41 PLAN IN SERVICE
42 Intagible S (13,596)
43 Production (2,435)
44 Transmission
45 Distribution
46 General ,.
47 Total Plani in Servce 0 0 0 0 (13.596)(2,435)
48 ACCUMATED DEPRECIK
49 ACCUM. PROVISION FOR M S (145)
SO Total Accum. Depreciation &S(145)
51 GAI ON SALE OF BUIDIN'
52 DEFD TAXS SI,267 S852
0 0 0 0 0 0
53 TOTAL RATE BASE SO SO SO SO SO SO I (SI2,184)1 SO I (SI,583)1
Exhibit No. 118
Case No. A VU-E-9-09-1/
AVU-G-09-1
C. Vaughn, Staff
OS/29/09 3 of 4
A VISTA UTILITIES
ELECTRC RESULTS OF OPERATIO
IDAHO RESTATED RESULTS
AVU-E-09-J
(OOO'S OF DOLLARS)
Staff Staff
CDATribe Debt Reeoneiliation Staff
DESCTION Settement Total
J. Lekie C. Vangbn
a I u w
Sta8 Sta9 Sia0
4 REVES
5 Tota General Business SO $220,107
6 Interdepanmenta Sales 0 5145
7 Sales for Resale 476 S16,416
8 Tot Sales of Eleeteity 0 0 476 5236,668
9 Other Revenue 33 55,331
10 Tot Elecc Revenue 0 0 509 S241,999
SO
11 EXPENSES SO
12 Production and Trasmission SO
13 Operating Expenses 0 667 $53,898
14 Purchased Power 0 716 S57,811
15 Depreciation and Amortzatic (40)121 S15,678
16 Taxes 0 0 S6,123
17 Total Production & Transn (40)1.504 S133,511
50
18 Distrbution SO
19 Operating Expeses 0 S9,514
20 Depreciation 0 S10,048
21 Taxes (12)$3,217
22 Tota Distrbution (12)S22,777
$0
23 Customer Accounting 0 0 $3,450
24 Customer Service & Informatioi 0 0 SI,543
25 Sales Expenses 0 0 5271
SO
26 Administtive & Geeral 50
27 Operating Expense 0 0 S20,152
28 Depreciation 0 0 54,867
29 Taxes 0 0 S135
30 Tota Admin. & Geeral 0 0 S25,I54
31 Tota Elecc Expenses (39)1,492 5186,706
SO
32 OPERATIG INCOME BEFOl 39 0 (983)555,293
33 50
34 FEDER INCOME TAX $0
35 Current Accrual 13 I 15 I (344)57,199
36 Defered Income Taxes 0 0 S5,373
37 NET OPERATIG INCOME 526 I (SI5) 1 (S639)1 $42,721
50
40 RATE BASE 50
41 PLANT IN SERVICE 50
42 Intagible (SI,762)SO 525,386
43 Producton 0 1,953 $370,916
44 Transmission 0 0 S165,657
45 Distrbution 0 0 $390,133
46 Genera 561,178
47 Tota Plant in Serice (1,762)1,953 SI,013,270
48 ACCUMATED DEPRECIK (110)27 5352,592
49 ACCUM. PROVISION FOR M $4,327
50 Total Accum. Depreciation &(110)27 $356,919
51 GAI ON SALE OF BUIDIN'0 SO .S252
52 DEFERRD TAXS S587 (S384)-591,955
53 TOTAL RATE BASE (SI,065) 1 SO 1 $1,5421 $564,1441
Exhibit No. 118
Case No. A VU-E-9-09-l/
AVU-G-09-1
C. Vaugh, Staff
OS/29/09 4 of 4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 29TH DAY OF MAY 2009,
SERVED THE FOREGOING DIRECT TESTIMONY OF CECILY VAUGHN, IN CASE
NOS. AVU-E-09-1 & AVU-G-09-1, BY ELECTRONIC MAIL TO THE FOLLOWING:
DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL
A VISTA CORPORATION
PO BOX 3727
SPOKANE WA 99220
E-MAIL: david.meyer(ßavistacorp.com
KELLY NORWOOD
VICE PRESIDENT - STATE & FED. REG.
A VISTA UTILITIES
POBOX 3727
SPOKANE WA 99220
E-MAIL: kelly.norwood(ßavistacorp.com
DEAN J MILLER
McDEVITT & MILLER LLP
PO BOX 2564
BOISE ID 83701
E-MAIL: joe(ßmcdevitt-miler.com
SCOTT ATKINSON
PRESIDENT
IDAHO FOREST GROUP LLC
171 HIGHWAY 95 N
GRANGEVILLE ID 83530
E-MAIL: scott(ßidahoforestgroup.com
CONLEY E WARD
MICHAEL C CREAMER
GIVENS PURSLEY LLP
PO BOX 2720
BOISE ID 83701-2720
E-MAIL: cew(ßgivenspursley.com
mcc(ßgivenspursley.com
DENNIS E PESEAU, Ph.D.
UTILITY RESOURCES INC
SUITE 250
1500 LIBERTY STREET SE
SALEM OR 97302
E-MAIL: dpeseau(ßexcite.com
BETSY BRIDGE
ID CONSERVATION LEAGUE
710 N SIXTH STREET
PO BOX 844
BOISE ID 83701
E-MAIL: bbridge(ßwildidaho.org
ROWENA PINEDA
ID COMMUNITY ACTION NETWORK
3450 HILL RD
BOISE ID 83702-4715
E-MAIL: Rowena(ßidahocan.org
CARRE TRACY
1265 S MAIN ST, #305
SEATTLE WA 98144
E-MAIL: carrie(ßnwfco.org
BRAD MPURDY
ATTORNEY AT LAW
2019N 17TH ST
BOISE ID 83702
E-MAIL: bmpurdy(ßhotmail.com
~.\(oc
SECRETARY
CERTIFICATE OF SERVICE