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HomeMy WebLinkAbout20100323Kensok Di.pdfDAVID J. MEYER VICE PRESIDENT AND CHIEF COUNSEL OF REGULATORY & GOVERNMENTAL AFFAIRS AVISTA CORPORATION P . 0 . BOX 3727 1411 EAST MISSION AVENUE SPOKANE, WASHINGTON 99220-3727TELEPHONE: (509) 495-4316 FACSIMILE: (509) 495-8851 r ': ~,'; :.~ i' J Hit J 23 n: is BEFORE THE IDAHO PULIC UTILITIES COMISSION IN THE MATTER OF THE APPLICATION OF AVISTA CORPORATION FOR THE AUTHORITY TO INCREASE ITS RATES AND CHARGES FOR ELECTRI C AND NATURAL GAS SERVICE TO ELECTRIC AND NATURAL GAS CUSTOMERS IN THE STATE OF IDAHO CASE NO. AVU-E-10-01 CASE NO. AVU-G-10-01 DIRECT TESTIMONY OF JAMES M. KENSOK FOR AVISTA CORPORATION (ELECTRIC AND NATURAL GAS) 1 I. INODUCTION 2 Q.Please state your name, emloyer and business 3 address. 4 A.My name is James M. Kensok.I am employed by 5 Avista Corporation as the Vice-President and Chief 6 Information Officer (CIO). My business address is 1411 E. 7 Mission Avenue, Spokane, Washington. 8 Q.Mr.Kensok,please provide inform tion 9 pertaining to your educational background and professional 10 exprience. 11 A.I am a graduate of Eastern Washington University 12 wi th a Bachelor of Arts Degree in Business Administration, 13 majoring in Management Information Systems.I have 14 experience through direct application and management of 15 Information Services over the course of my 31 year 16 information technology career.I joined the Company in 17 June of 1996.Over the past 14 years, I have spent 18 approximately one year in Avista's Internal Audi t 19 Department as an Information Systems Auditor with 20 involvement in performing internal information systems 21 compliance and technology audits. I have been in the 22 Information Services Department for approximately 13 years 23 in a variety of management roles directing and leading Kensok, Di 1 Avista Corporation 1 information technology and systems; planning, operations, 2 system analysis, network advancement, telecommunications, 3 information security,applications deve 1 opmen t, 4 outsourcing agreements, contract negotiations, technical 5 support, cost management, data management and strategic 6 development.I was appointed Vice-President and CiO in 7 January of 2007. .8 Q.What is the scope of your testimny? 9 A.My testimony will describe the increase in costs 10 associated with Avista's information technology, and the 11 proposed pro forma adjustments included in this filing. 12 These costs increases include additional expenses for 13 supporting applications utilized by the Company, 14 additional required security and compliance requirements, 15 and addi tional dollars required for hosting fees, 16 application fees, software maintenance and license fees. 17 Q.Please provide som background regarding 18 Avista's Informtion Services (IS) Departmnt's operating 19 needs. 20 A.Avista has been, and continues to be, focused on 21 utilizing cost-effective information and operating 22 technology to meet business and customer needs. 23 Maintaining appropriate levels of information and Kensok, Di 2 Avista Corporation 1 operating technology funding is increasingly important, 2 and Avista and its customers rely more and more on 3 computer systems and technology to meet day-to-day 4 business operations. 5 Computer hardware, software, networks and related 6 tools are becoming more indispensable, and more complex, 7 as the business environment and customer expectations 8 grow, and more information and transactions flow on-line. 9 There continues to be exponential growth in the use of 10 Avista networks for customers transacting on-line and for 11 Avista to manage its delivery system and mobile workforce. 12 For example, electronic bill presentment and electronic 13 payment provides convenience for customers to understand 14 their bill and remit payment electronically, as well as 15 access extensive information from the Company related to 16 areas such as energy efficiency and safety.As Mr. 17 Kopczynski explains in his testimony, our automated voice 18 response call system now handles 47.3% of incoming calls 19 from our customers.Mobile dispatch of service crews 20 involves wireless technology in Company field vehicles, 21 and provides improved customer service for construction 22 locates and service work, at lower cost.wi thout these 23 technologies,Avista could not meet customer and Kensok, Di 3 Avista Corporation 1 regulatory expectations, nor achieve many of the cost 2 savings we have accomplished through the use of 3 technology. 4 Q.What is causing an increase in costs related to 5 Informtion System? 6 A.One factor driving an increase in is costs is 7 the life of the systems themselves.Unlike other utility 8 equipment which may have useful lives of 30 to 50 years or 9 longer, is hardware and software is relatively short- 10 lived, and must be enhanced or replaced more frequently 11 than other utility tools and equipment.In addition, 12 among ,other things, increasing requirements related to 13 reliability and security related to our operations and 14 communications have required significant ongoing 15 investment in our is hardware, software and staff. 16 As an example,Avista is implementing a new 17 compliance application necessary for meeting the North 18 American Electric Reliabili ty Corporation (NERC) 19 requirements.Currently, the activity for documenting 20 Avista's controls for NERC compliance is done manually 21 which is very labor intensive.By implementing the 22 compliance application, the required documentation is 23 easily accessible for updating and for auditing.To Kensok, Di 4 Avista Corporation 1 continue to operate manually would require the addition of 2 1-2 staff positions. 3 The need for additional development and support of 4 Avista's outage management and construction design 5 applications is growing.The value of these applications 6 is measured in efficiency through improved customer 7 response time for outage restoration.Further, it 8 provides the customer with real-time access via the 9 telephone or Web on estimated restoration times.The 10 construction design system is a tool used by Avista 11 engineers to design electric and natural gas 12 infrastructure.The tool reduces the amount of time the 13 design engineer spends in the field, as most all of the 14 existing facility and geographic information they need is 15 contained wi thin the application.As a result, they are 16 able to design construction jobs more quickly and 17 accurately for the customer, which reduces the overall 18 cost of the project and on-going support.These systems 19 are expanding, and as a result require additional hours 20 for maintenance and support. 21 Q.As is requiremnts change over, time, is there 22 also opportunity to reduce costs associated with these 23 tools? Kensok, Di 5 Avista Corporation 1 A.Yes. In 2009, Avista worked to reduce the 2 overall technology expenditures by nearly one-million 3 dollars. This was done through a focus on reducing many 4 costs: from as little as a $111 reduction for OATI (open, 5 access transmission information system) web hosting fees, 6 to as high as a $179,872 reduction through a renegotiated 7 AT&T contract.Table 1 below summarizes the cost 8 reductions in is of nearly $1 million. 9 Table 1 Communication Infrastructure Data Storage services (helpdesk, web hosting, ass management, etc.) General Offce Technology (softare, printer, fax, keyboards, etc.) Operating Systems (Unux, UNIX, Virtual Server, etc.) Total Reductions: $437,791 $74,282 $380,124 $36,00 $37,306 $965,503 10 11 In addition, to these cost reductions in 2009 that 12 will carry forward to 2010, we have also identified other 13 reductions in the 2011 pro forma period (October 1, 2010 - 14 September 30, 2011).Telecommunications maintenance & 15 repair is anticipated to bé reduced by approximately 16 $115,000 in 2011,and professional services are 17 anticipated to be lower by $87,000. These reductions were Kensok, Di 6 Avista Corporation 1 included in the development of the pro forma adjustment 2 for the 2009 test period. 3 While Avista diligently works to reduce technology 4 costs resulting in significant reductions, there are net 5 cost increases of $4,437,375 related to operations in 6 2010, and an additional $657,000 for 2011. 7 Q.Please sumrize the 2010 pro form cost 8 increases? 9 A.Table 2 below summarizes the net increase in is 10 costs for the year 2010, which continue into the 2011 pro 11 forma rate year. 12 Table 2 2010 Net Operating Cost Increases Description Amount $ 380,205 $ 232,512 $ 908,545 $1,427,356 $1,488.757 .. TOTAL 4.4U.J75 Information Technology Operations General Expenses Software/Hardware Operating and License Fees Professional Services - Customer and Operating Applications Professional Services - Network Engineering/Support - Security & Compliance Support 13 14 Q.Please explain the increase in costs associated 15 with Informtion Technology Operations of $380,205 shown 16 in Table 2. 17 A. Avista has experienced significant increases in 18 property lease costs for mountaintop communication Kensok, Di 7 Avista Corporation 1 facili ties.For the year 2010, the lease for the Mt. 2 Spokane communication facilities has increased from 3 approximately $5,000 per year to approximately $73,759 per 4 year. Other mountaintop facilities are also experiencing 5 increases in lease costs totaling approximately $10,548 6 per year. These facilities are the core communication 7 si tes for all network traffic that support the electric 8 distribution system, protection and relay circuits, field 9 communication devices,and mobile communications for 10 natural gas and electric crews.Without these 11 communication sites, Avista would not be able to dispatch 12 service work, provide a safe working environment for the 13 crews, and operate the electric and gas infrastructure. 14 Costs from communication network providers such as 15 Century tel , Frontier, Verizon, etc. will also increase in 16 2010. The increase in costs are related to constraints in 17 network capacity and general vendor cost increases. The 18 network capacity, or volume of data a network can move in 19 a timely manner, is constrained. It is constrained due to 20 an increase in volume related to the number of customers 21 contacting Avista via the internet for customer self- 22 service. This provides the customer a channel to transact 23 business, (bill payment, energy efficiency information, Kensok, Di 8 Avista Corporation 1 rebates, etc.) with Avista when it is convenient for them 2 and reduces calls to the call center. 3 Increases are also due to greater usage of mobile 4 communications.Avista utilizes mobile communications to 5 improve efficiency when serving customers.For example, 6 rather than driving back to the office for work 7 assignments, a field-based employee is given service work 8 via their mobile laptop or cell phone.Avista's claims 9 representatives use mobile communication to work with 10 various agencies and Avista staff when processing a claim. 11 Prior to this, the claims representative had to take 12 pictures and notes at the scene and then return to the 13 office to re-enter those notes manually.Now, they send 14 them via their cell phone.This reduces time for claims 15 processing and improves the efficiency of the claims 16 representative. 17 In order to preserve these tools that enhance 18 customer service and cost-efficiency, it is reasonable and 19 appropriate that the increased costs associated with these 20 tools be passed on to customers, who benefit directly from 21 these tools. 22 Q.Please explain the cost increases related to 23 General Expenses of $232,512 in Table 2 above. Kensok, Di 9 Avista Corporation 1 A.There has been a significant increase in the 2 use of customer-focused technology,i. e. ,Web and 3 automated telephone transactions, outage management and 4 restoration information, etc., and an increase in staff to 5 support the technology.Avista's customers have quickly 6 adopted the Company's new voice-based technology system 7 that allows for making credit arrangements via the 8 telephone, which reduces calls to the call center.Mr. 9 Kopczynski explains the significant cost reductions 10 related to call center staff,resul ting from this 11 technology, which have been passed on to customers. 12 Avista must ensure that there is adequately-trained 13 staff with proper tools to operate and maintain this 14 technology. For 2010, this requires increased staff, 15 training and tools totaling $232,512. These costs include 16 $116,558 for software development tools for application 17 programming, computer monitors, and personal communication 18 devices for on-call support and web content management, as 19 well as productivity tools such as program debugging 20 software.These systems also require additional 21 technology training costs in 2010 of $115,954.With a 22 lack of training, these applications and others will not 23 be properly maintained, will not be effective in serving Kensok, Di 10 Avista Corporation 1 customers and preserving the cost savings they have 2 created. 3 Q.Please explain the change in costs associated 4 with Software/Hardware Operating and License Fees of 5 $908,545 in Table 2 above. 6 A.In order to meet customer needs, Avista employs 7 numerous applications from more than 85 application and 8 hardware vendors. These applications and hardware vendors 9 (Avaya, Hewlett-Packard-hardware, Wonderware, etc. ) are 10 expected to increase the software/hardware maintenance 11 fees by $908,545 in 2010. These applications and hardware 12 are necessary to support Avista' s customers calling in to 13 check on system outages (Avaya) , and have an Avista 14 service person dispatched to check for natural gas leaks, 15 read meters, and to protect their information, etc. 16 In addition,these applications and associated 17 hardware are utilized for operating Avista's generation 18 and distribution systems.For example,Wonderware 19 software is used to operate Avista's power plants and the 20 Hewlett-Packard hardware is used to host the computers 21 that manage the electric and natural gas infrastructure. 22 Without 85-plus primary applications, Avista would 23 not be able to operate its natural gas and electric Kensok, Di 11 Avista Corporation 1 infrastructure and power plants, and would not be able to 2 serve its customers. 3 Q.Please explain the change in costs associated 4 wi th Professional Services Customr and ÇPrating 5 Applications of $1,427,356 shown in Table 2. 6 A.This area includes cost changes involving four 7 different components.Each component is explained 8 separately below. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 New Positions Already Filled ($134,340) - There is an increase of 1.31 positions contracted with Hewlett- Packard for 2010. The purpose of the new positions is to support the need for report writing and web application development. The one full-time report writing position is needed to mine data and write reports that lead to improved efficiency across the Company. For example, in order to determine the main causes of electric distribution system outages, data are mined and correlated to the root, cause of the outage. This position produces reports for managing crew over-time, crew efficiency, customer transaction efficiency, resul ting in improved employee efficiency and asset management. The purpose of the partial FTE (.31 FTE) is to assist in the on-going maintenance and support of Avista's Intranet site web technology based platform (SharePoint) . This is a site that is designed to improve efficiency for communicating across the Company. All of the business unit performance metrics are managed on the internal web-site. The employee self-service applications for Human Resources and Payroll are accessed through the internal web-site. Through employee self-service, Avista gains efficiency in productivity and reduces Kensok, Di 12 Avista Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 costs of printing communications. and mailing internal New Positions To Be Added in 2010 ($324,738) - Avista will be contracting with Hewlett-Packard in the third quarter of 2010 for two positions to support a new distribution automation application. The annualized cost for these positions is $324,738. The purpose of the application is to automate the management of the electric distribution system. With automation, Avista has the opportunity to reduce line losses andimprove efficiency in the electric distribution system. With a reduction in line losses ahd improved load balancing, the overall efficiency of the electric system improves. With these improvements, costs are optimized through reduced line loss of electricity, and system reliability is improved for Avista customers. Hewlett-Packard Annual Cost Adjustmnt ($77,972) Avista's outsource agreement with Hewlett-Packard has a contractual obligation for increases in labor rates associated with all application labor-based Operating Agreements. The increase is based on the ConsumerPrice Index as of May 2nd of the current contract year. The annualized increase for 2010 is estimated to be $77,972. Infrastructure labor as compared to application labor (Le., networks, desktop support, etc.) is also subject to adjustment on an annual basis. The infrastructure adjustment is included in the overall total in the Professional Services Network Engineering Support section. Application Development Services ($890,306) Staffing and support of applications for the meter shop are necessary to accurately reflect meter inventory and meter data accuracy. The addition of mul tiple meter platforms requires additional staffing and IS applications to address meter inventory and meter read data accuracy. The meter data must be validated through error checking software to ensure that the customer is properly billed. There is alsoincreased work load associated with integration technology. The increase in workload is related to integrating additional customer transactions, such as Kensok, Di 13 Avista Corporation 1 2 3 4 5 6 7 open/close/transfer and outage information tied tomobile dispatching. These is applications provide the platform for Avista and its customers to be more efficient in managing outages, bill payments and opening, closing and transferring accounts. 8 Q.Please explain the changes in costs associated 9 wi th Professional Services - Network Engineering/Support & 10 Security & Comliance Support of $1,488,757 in Table 2 11 above. 12 A.There are two components to this item.The 13 first is related to security and compliance support with a 14 total increase in costs of $906,239.Securi ty and 15 compliance for customer data and Avista's natural gas and 16 electric infrastructure is mandatory. 17 By way of background, the vulnerability of electric " 18 utili ty operations to accidental or malicious disruption 19 has been the subject of significant concern for several 20 years. These concerns were intensified, first after the 21 widespread blackout in the western United States in 1997, 22 and then after the tragic events of September 11, 2001, 23 and the unprecedented blackout in 2003 in the Northeast 24 and portions of the Midwest. These events spurred the 25 Federal Energy Regulatory Commission (FERC) to develop 26 actionable mandates for enhancing security over bulk Kensok, Di 14 Avista Corporation 1 electricity operations. These mandates apply to all users, 2 owners, and operators of the bulk power system and 3 primarily involve generation and transmission 4 infrastructure. In addition to this governmental mandate 5 for increased security, the rapid evolution of information 6 technologies in the intervening years and the widespread 7 adoption of the internet as the defacto medium of choice 8 for data communications, including Voice over Internet 9 Protocol communications, have added another layer of 10 urgency to this need for mitigating vulnerabilities 11 inherent in the design, constrüction and operations of the 12 country's bulk electric system. 13 In the wake of 9/11 and the 2003 blackout, the 14 Critical Infrastructure Protection (CIP)Standards 15 mandated were issued by NERC to protect the electric 16 system.The ~cyber security" requirements contained 17 within these Critical Infrastructure Protection mandates 18 specifically require the utilities to ensure secure 19 operations of the information and communication' technology 20 components hardware, software and networks that 21 support the operation of the nation's bulk electricity 22 system.Unlike previous NERC-driven reliabili ty 23 improvement efforts,these mandates are not merely Kensok, Di 15 Avista Corporation 1 suggested actions, but instead, include penalties for non- 2 compliance. 3 Therefore, Avista has a legal obligation to secure 4 its data networks beyond protecting customer information. 5 Avista must now not only provide secure access to its 6 customer and business information, it now must provide, by 7 law, secure access to its bulk electric system.This 8 requires Avista to engineer,implement and maintain 9 addi tional new network security.In order to meet these 10 new security requirements, Avista must add additional 11 staff and systems. 12 Avista added one security position and will add a 13 second security position to focus on meeting new network 14 securi ty compliance requirements from NERC. The purpose of 15 these two staff positions is to design and implement 16 systems and processes necessary to ensure that Avista is 17 able to comply with NERC's mandated set of Cyber Security 18 Critical Infrastructure Protection communication network 19 standards. 20 In addition to protecting Avista customer information 21 and electric/gas and operating applications, Avista must 22 be prepared to recover from a maj or disaster affecting the 23 business operations. Therefore, Avista has implemented an Kensok, Di 16 Avista Corporation 1 Enterprise Business Continui ty program.This program 2 provides the oversight and direction for recovery and 3 restoration of business systems and facilities in the 4 event of a disaster.As such, Avista has dedicated new 5 staff to manage and operate the program. 6 Q.What is the second component of the increase in 7 costs associated with Professional Services Network 8 Engineering/Support & Security & COmpliance Support in 9 Table 2 above? 10 A.The second component is related to network 11 engineering and support with a total increase in còsts of 12 $582,518.Addi tional communication network engineers and 13 support staff are needed to design and maintain networks 14 that support the automation of:(1 )the electric 15 distribution system,(2 )customer and employee 16 communications, and (3) electric mobile dispatch networks. 17 With the expansion of these networks, Avista has added and 18 will add new staffing. The following is an explanation of 19 how each network supports Avista's customers, employees 20 and distribution operations: 21 22 23 24 1.The Electric distribution system network enhances the control, reliability and efficiency of the electrictransmission and distribution system. Traditionally, this system has been managed with an industry Kensok, Di 17 Avista Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 standard network known as Supervisory Control and Data Acquisition (SCADA) network. 2.The customer and employee communication network is used for transmitting voice, data and video for day- to-day business operations to and from Avista customers and employees. This network has grown and changed significantly in its complexity to engineer and manage. The growth and complexity is related to increased on-line automated customer transactions on both the Web and the telephone. Through the automation of many customer transactions and access to data that customers request on a regular basis, Avista has been able to minimize the number of staff in the call center that assist customers withtransactions. These transactions include: self-service functionali ty for customers to open/close/transfer their account; report a poweroutage; view current outages and restoration estimates; sign up for various programs such as comfort level billing and automatic payment service; view their past 24 months of electric and natural gas usage; and use of tools to understand options for energy efficiency. 3.The electric mobile dispatch network is used for dispatching electric service crews. Avista is broadening the use of the gas mobile dispatch ~etwork from gas only to include electric service work. The success that Avista continues to experience through improved customer satisfaction is related to on-time service work, staffing efficiency and reduced drive time. Q.How is the distribution automation network 36 different than the SCAA network? 37 A.The network the electricSCADAmanages 38 transmission and distribution system where communication 39 devices signal utility system operators as to the Kensok, Di 18 Avista Corporation 1 condi tion or health of the electric system. When there is 2 a fault in the electric system, the system operator is 3 notified via the SCADA data network of the fault. The 4 current SCADA network does not provide comprehensive data 5 analytics that are necessary for improving efficiency in 6 the electric distribution system.With improved 7 efficiency, Avista can reduce line losses resulting in 8 higher distribution system reliability, and efficiency, 9 which increases customer satisfaction. In order to capture 10 the efficiency and improved reliability, Avista has 11 started to implement a new distribution automation network 12 that complements the existing SCADA network. 13 Wi th the opportunity to reduce line losses in the 14 electric distribution system,more comprehensi ve 15 analytical data is required than what the SCADA network 16 has been providing.In order to obtain more analytical 17 data, additional sensing devices have been added to the 18 electric distribution system.These additional sensing 19 devices require a ~distribution automation network" to 20 move the data from the sensing devices back to a location 21 where an engineer can analyze the data.Through 22 analytics, the engineer is then able to tune the electric 23 infrastructure to reduce line losses and more efficiently Kensok, Di 19 Avista Corporation 1 balance the electric load.Wi th a reduction of line 2 losses and improved load balancing, the overall efficiency 3 of the electric system improves, which reduces costs 4 related to loss of electricity and improves reliability 5 for Avista customers. 6 Q.What are the changes in costs for the 2011 7 portion of the pro form period that have been included in 8 this case? 9 A.The increases in information technology costs 10 for the 2011 portion of the pro forma period are shown in 11 Table 3 below: 12 Table 3 13 14 15 16 17 2011 Operating Cost Increases Description Amount Professional services and network maintenance/growth costs $ 208,231 Professional services and application softare maintenance $ 448,544 TOTAL $ 656.n5 18 19 20 Professional Services and Network Maintenance/Growth 21 ($208,231)Avista expects increases in network 22 maintenance and repair fees in 2011 of $208,231.For 23 each new critical piece of network usage hardware that Kensok, Di 20 Avista Corporation 1 is added in 2010, Avista has an increase in maintenance 2 fees the following year. Avista pays a maintenance fee 3 to ensure that it meets system availability requirements 4 for customers and employees.In addition, as 'I 5 mentioned earlier, there continues to be exponential 6 growth in the use of Avista networks for customers 7 transacting on-line and for Avista to manage its meters 8 and mobile workforce. As a result, the capacity of the 9 network must be expanded each year. The expansion costs 10 are related to increased costs with the 11 telecommunication providers. 12 Professional Services and Application Software 13 Maintenance ($448,544)Avista expects one new 14 application in 2011 that requires a recurring 15 maintenance fee of $174,140.The Company expects 16 increases of approximately $274,404 in labor expense in 17 2011. The additional labor is necessary to provide 18 development and support services for Meter Data 19 Management System; this captures meter reads on a 20 defined frequency and is used for customer billing, 21 usage-presentment and demand-management by the customer. 22 Wi thout the labor to manage the new application for 23 meter data management, the application is' at risk for Kensok, Di 21 Avista Corporation 1 poor performance or failure.Should the application 2 fail or perform poorly, the meter reads that are 3 captured by the application will be lost, limiting 4 Avista's ability to bill customers and the customers' 5 abili ty to know their usage of power. 6 Q.Does that conclude your pre-filed direct 7 testimny? 8 A. Yes. Kensok, Di 22 Avista Corporation DAVID J. MEYER VICE PRESIDENT AND CHIEF COUNSEL OF 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 COMMSSION IN THE MATTER OF THE APPLICATION OF AVISTA CORPORATION FOR THE AUTHORITY TO INCREASE ITS RATES AND CHARGES FOR ELECTRIC AND NATURAL GAS SERVICE TO ELECTRIC AND NATURAL GAS CUSTOMERS IN THE STATE OF IDAHO CASE NO. AVU-E-10-01 CASE NO. AVU-G-10-01 EXHIBIT NO. 10 JAMES M. KENS OK FOR AVISTA CORPORATION (ELECTRIC AND NATURAL GAS) This page left blank intentionally No Exhibit Material (Exhibi t numer was erroneously assigned to Mr. Kensok)