Shared Value — Shared Success

Transcription

Avista’s Report On Our Performance 2013
Table of Contents
A Directory For Avista’s
Report On Our Performance
A Message from Our Leadership
PG.2
Our Company
PG.4
Utility Operations
PG.19
Environmental Stewardship
PG.44
Community Partnership
PG.58
About the Report
PG.71
Global Reporting Initiative
PG.73
1
Pictured left to right: Dennis Vermillion, Scott Morris
Dear Friends:
A Message
From Our
Leadership
Welcome to Avista’s fifth report on our operations. We’ve
been very deliberate in the evolution of our reports to you.
Over the course of the past five years, we’ve enhanced
the information we provide by adding more details and
examples that we believe will give you a better idea of
what we do and our commitment to adding value in our
service to our customers and communities which leads to
successful outcomes.
Corporate responsibility reporting has evolved. Traditionally,
reporting was focused on compliance and how companies
met the rules and requirements of their business.
Philanthropy and community involvement were set apart
from core business strategies.
2
A Message From Our Leadership
The next iteration of reporting targeted
sustainability, where the focus was on
outcomes of the company’s operations and
their impact on the triple bottom line
— environment, economy and society.
In our report, we shift to a new perspective
that demonstrates how our strategic business
interests, including philanthropy and
community involvement, create the
opportunity to bring value to our stakeholders
— shared value.
Building shared value frames our business
practices and our reporting. The key drivers
are the links between our corporate strategic
plans — opportunities that create economic
value for our company — and the positive
outcomes that also address societal needs
and challenges.
The Shared Value — Shared Success theme
reaches through the seven strategies that
frame our work:
•Customer Engagement and Value —
deliver more value to more customers and
strengthen engagement for mutual
understanding;
•Financial Performance — Strengthen
financial performance to remain a healthy
company and an attractive investment;
• Community Vitality — Act through
partnerships and service to enhance
community vitality;
• People and Performance — Reinforce a
values-driven culture of employees who do
the right thing to help us succeed;
•Safe and Reliable Infrastructure — Invest in
our infrastructure to achieve optimum
life-cycle performance — safely, reliably and
at a fair price;
•Responsible Resources — Control a
portfolio of resources that responsibly meet
our long-term energy needs; and
• Effective Regulatory Outcomes — Drive
positive regulatory outcomes at the local,
state, regional and federal levels.
Thank you for your interest in Avista and this
report. We hope that you will give us your
feedback on the report and that you will share
this report with others.
Sincerely,
Scott L. Morris
Chairman, President and CEO Avista Corp.
Dennis Vermillion
President, Avista Utilities
These activities are not new for Avista. We’ve
always been purposeful in making the
connection between Avista’s business
strategies and the benefits our actions can
have for customers and the communities
we serve. This report is our opportunity
to share with you the many ways in
which Avista continues to create
value for all our stakeholders,
while delivering reliable energy
services and the choices that
matter most to our customers.
3
Our Company
The People And Processes
That Make Avista Successful
Organizational
Profile
Avista generates and transmits electricity and distributes
natural gas, while providing innovative energy solutions
for our residential, commercial and industrial customers.
We are a regulated business unit of Avista Corp., an
investor-owned corporation headquartered in Spokane,
Wash. As one of the largest taxpayers in the region,
our economic impact approximates $360 million and
supports family-wage jobs in rural, suburban and urban
communities in our 30,000 square-mile service territory in
eastern Washington, northern Idaho and parts of southern
and eastern Oregon and Sanders County, Montana.
4
Our Company
Our Purpose
To improve life’s quality with energy — safely,
reliably, responsibly.
Our Lasting Principles
Certain principles have stood the test of time
and remain deeply rooted in our company.
Every aspect of what we do is aligned with
these principles.
At Avista we are:
Trustworthy: Our word is reliable; we do
what is right.
Innovative: We continuously improve and
find ways to get things done better.
Collaborative: We are respectful and are
at our best when working together.
Our Commitment To Diversity
Selected Company Statistics
(as of Dec. 31, 2012)
Avista Corp. total annual revenue $ 1,547,000,000
78,210,000
Avista Corp. net income $
Avista Utilities number of employees 1,682
Number of customer accounts
Retail — electric 360,459
Commercial/industrial — electric 40,998
Retail — natural gas 320,580
Commercial/Industrial Natural Gas 33,833
1.6 million
Population of service area Avista is enriched by the diversity of our
employees. We are committed to the goals
of Equal Employment Opportunity and
Affirmative Action, maintaining an
environment of acceptance and inclusion
for everyone in all aspects of our daily
operations. Our employees and our company
value diversity and mutual respect, and the
work place is free from harassment and
discrimination for employees, customers,
suppliers and other stakeholders in all aspects
of our daily operations.
5
Our Company
Our
Employees
The culture at Avista is based on integrity and
respect. We offer employees the chance to
enrich their careers through challenging and
meaningful work assignments and ongoing
training and development — all in an equal
opportunity workplace that is surrounded by
a supportive environment. Our success lies in
hiring talented people and setting them free
to pursue great ideas — ideas that engage the
imagination, stretch us all and ensure that
Avista continues to provide exemplary and
cost-effective service to our customers.
Our workforce reflects the communities we
serve — approximately 6.6 percent of our
employees system-wide identify themselves
as minority. Spokane County, home to our
headquarters and some 1,207 of our
employees, has approximately 9 percent
minority population in the work force.
Roughly 33 percent of our employees will be
eligible to retire in the next five years, and
48 percent will be eligible to retire in the next
10 years. However, we’ve planned for this
shift in our demographics, and through
professional development programs coupled
with careful succession planning, we continue
to develop our workforce to keep ideas fresh
and leadership strong. Avista does periodic
assessments of future retirement scenarios to
anticipate how to attract, retain and develop
critical talent needed for the continued
effective operation of the company.
Performance Reviews
Working At Avista
All regular, non-bargaining unit employees
receive formal performance reviews on an
annual basis and updates at mid-year. Our
union employees receive periodic evaluations
as needed.
Local Hiring
Supporting Military Service
In an ongoing effort to recruit qualified local
employees, we post positions on local job
web sites such as Worksource (WA) and
Idahoworks (ID) as well as through traditional
and social media channels (Facebook,
Craigslist and Linked In) and on our company
website. In addition, we submit our external
job postings to more than 100 agencies across
Washington, Idaho, Oregon and Montana.
As appropriate, we also notify local schools
of student employment opportunities. Of the
12 executive level officers employed by Avista,
nine were hired locally (from within the Inland
Northwest region).
It is Avista’s policy to grant military absence
and military time off without a break in service
time or benefits, as required by law and in
accordance with the needs of employees who
are members of the military service. Currently,
Avista has approximately 77 self-declared
veterans of military service, about 5 percent
of our work force. As the number of veterans
returning home from service increases, Avista
is actively working with local organizations to
identify opportunities to support veterans-towork initiatives.
Collective Bargaining
At Avista, 40 percent of employees are
covered by collective bargaining agreements.
Avista employees are represented by the
International Brotherhood of Electrical
Workers, Local 659 (Oregon) and Local 77
(Washington/Idaho).
In 2012 Avista staff participated in a U.S.
Chamber of Commerce “Hiring our Heroes”
hiring event, was presented with an Award
of Excellence from the Spokane VA Medical
Center and forged new relationships with
agencies that provide job-readiness services
to area veterans. The Avista recruiting team
speaks to local veterans groups about
transitioning their military experience to
energy-industry jobs. In October 2012, Avista
was one of the first utilities to organize a
special vets-only event during the national
“Careers in Energy Week.”
6
Our Company
Engaging Our Employees
Avista employee engagement — their level
of commitment to and satisfaction with
employment at Avista — is measured every
two years, beginning in 2006, in partnership
with the independent consulting firm Mercer.
Employee Engagement
* This level of employee engagement is 13 percent higher than the
norm for all
industries as measured
by Mercer.
A wide array of communication tools are used
to keep our employees informed about our
company, our industry and current trends in
the energy industry. These include electronic
and print newsletters and emails, issue-specific
information sheets, pre-packaged information
tools for managers, communications
leadership training and quarterly town hall
meetings with executives.
Who We Are
Board of Directors
• 3 females, 27 percent female*
• One of the 11 directors identifies as minority
Corporate Officers
• 3 females, 25 percent female
• No officers identify as a minority
• Of the top 5 executive officers, 2 are female
Employees
• 30 percent female, 70 percent male
• 6.6 percent identify as a minority
* While the national activist group 2020 Women on Boards call for at
least 20 percent of public company directors to be women by the
year 2020, Avista already meets that standard. (Puget Sound
Business Journal, May 25-31, 2012)
Programs And Processes To
Ensure The Availability Of
Skilled Workforce
Avista Scholars Program
Avista partners with colleges and universities
throughout our three-state service territory
to provide several different scholarship
opportunities for students. The mission of
the Avista Scholars program is to promote
excellence in the fields of math, science,
technology and engineering, leading students
to become innovators, problem solvers and
diverse, talented employees of our future.
7
Our Company
A Training Partnership With The
Community College
Avista partners with Spokane Community
College to offer a course that provides an
introduction to the electric lineman field
through the Line Pre-Apprentice Program.
It is held at Avista’s Jack Stewart Training
Center, a 10-acre lineman training facility, and
is open to individuals interested in entry-level
positions leading to careers in the electric line
worker craft. Participants learn, through
hands-on and classroom experience, the skills
and knowledge required for the position of a
line crew helper.
High School Counselors And Teachers
Experience Life As An Apprentice At
The Jack Stewart Training Center
Avista is well-versed in providing opportunities
for professional development for its own
employees. But when it comes to helping
educators better understand the kinds of
opportunities there are for their students in the
utility field, our expertise was put to the test in
2012. During national Careers in Energy Week,
we opened our Jack Stewart Training Center
to high school counselors and teachers who
experienced life as an apprentice for the day.
The participants learned how electric crews
place ground wires on poles, position cross arms
and place poles in the ground. Our trainers
didn’t let them just stand around either — they
did the actual work with shovels, power drills,
hammers and ropes. Due to some unfriendly
high winds, rookies weren’t able to climb a pole,
but there were several who were interested.
Almost half of today’s energy workforce will be
retiring in the next decade. As technology within
the industry quickly increases, so does the need
for a tech-savvy workforce to support high-skill,
high-wage jobs. The right education and training
will provide men and women a rewarding, wellpaying career that benefits millions of people
every day.
Ongoing Professional
Development Opportunities
Training opportunities for employees at
Avista are delivered through instructor-led,
computer-based, field and workshop models
that include: craft, customer service,
environmental, natural gas, desktop,
warehouse, project management, gas for
non-gas workers, health and safety, leadership
development, electric, flagging/ forklift, line,
apprentice, journeyman, power resources,
hydro and power supply.
8
Our Company
Opportunities For Continued
Learning And Professional
Development
Aspiring Leaders Program
In its 10th year, the Aspiring Leaders Program
provides development for those employees
preparing to be considered for future
leadership roles. This one-year program
provides qualified employees exposure to a
variety of departments, training, mentoring
and includes a team project.
College Tuition Aid
The company provides tuition assistance of up
to $2,500 each year for undergraduate and
master’s level studies in programs that add to
employees’ performance and effectiveness in
present or foreseeable jobs within
the company.
Learning Center
Avista’s Learning Center was established in
1998 to promote lifelong learning for all
employees. The center focuses on being
proactive rather than reactive in terms of
training and learning opportunities. Resources
available include audio/video media, books,
journal/periodicals and self-study courses.
Workshops, Classes and
Development Programs
Avista offers a series of workshops and classes
that are open to all employees as part of an
overall professional and leadership
development program. Topics include
leadership enhancement, business process
improvement and change opportunities for
understanding more about the role of
leadership, utility strategies and operations
through programs offered by the Western
Energy Institute, American Gas Association,
Edison Electric Institute, University of Idaho,
Willamette University, Gonzaga University
and others.
Customer satisfaction is a value we hold
dear at Avista. So much so that we dedicate a
rotating team of employees nearly every month
to focus entirely on one point of customer
interaction. The teams work hard to simulate
the experience our customers have when they
encounter our utility. Whether that interaction
takes place in person, on the phone, through the
media or some other form of impression, every
interaction has an effect on our customers…and
we want it to be a good one.
The field training customer touch point team
recognized that while our employees do a great
job of interacting with our customers, there’s
still a need to refine the training they receive
to enhance our customers’ experience. A key
outcome of the work of this team included
specialized customer experience training for all
field personnel. Topics included communicating
effectively, being a responsive problem solver,
responding effectively to customer inquiries and
proactively engaging with customers.
9
Our Company
Safety And Health
A safe and healthy work environment is an
essential part of our commitment to all our
employees. Fortunately, we had no employee
fatalities as part of our 2012 operations.
Our focus continues to be on reducing the
rate of vehicle accident and lost-time incidents,
because we want every employee to go home
safely to his or her family at the end of
their shift.
Avista’s Central Safety Council is committed to
providing the safest workplace possible and a
safe environment for all of our employees,
their families and the communities we serve.
Safety information is reported quarterly to
Avista’s board of directors.
The Central Safety Council’s mission is to act
as a forum to provide leadership and direction
to the safety efforts; advocate the steps
needed to achieve safety goals; coordinate,
monitor and focus on safety and prevention;
and ensure proper action will be taken to
provide a safe and healthy work environment
for all our employees.
There are 37 location-specific safety
committees and safety chairmen throughout
the company.
Employee Health Preparedness
And Assistance
In the event of widespread illness, Avista has
a pandemic emergency plan in place that
includes work force, community and family
assistance elements. The plan was created to
provide employees with information, support
and policy guidance prior to, during and
following a regional pandemic event that
impacts our ability to provide services to our
communities. Coordinated response
procedures are instrumental in effectively
maintaining our customer services during a
long-term pandemic event.
In addition, employees and families receive
education, training, counseling, treatment and
prevention/risk control opportunities through
the Occupational Health Department and the
company health and wellness programs.
Avista maintains an on-site clinic in the main
office with occupational and safety
professionals available to serve all locations.
The company provides an Employee Assistance
Program, and a Health Reimbursement
Arrangement (HRA). And to foster ongoing
wellness, onsite exercise facilities are provided
in many work locations throughout our
service territory.
Health And Safety Topics Covered
In Formal Agreements With
Trade Unions
Avista has the intent and the commitment to
follow all federal, state and local health and
safety regulations and compliance programs.
We work with our craft representatives to
promote safety from the foremen to their
crews. Our Labor/Management Committee
meets quarterly or as needed to address
problems and concerns. A joint union/
management Safety Advisory Committee
addresses safety issues and works to address
safety concerns, including injury and incident
review and personal protective equipment
recommendations. The union contracts also
include grievance and arbitration language
to deal with safety concerns or complaints.
Policies And Requirements For
Health And Safety
Avista follows the requirements and guidance
of numerous regulatory agencies for employee
safety, including Occupational Safety and
Health Administration (OSHA), Washington
Division of Occupational Safety and Health
(DOSH), Oregon Department of Occupational
Safety and Health (OREOSHA), and the
Department of Transportation (DOT). Our
Safety Handbook includes an accident
prevention plan as well as safety rules and
practices for the different operating units.
10
Our Company
Avista supplies personal protective equipment
for employees as needed for their work,
including the tools, equipment and machinery
required to perform their jobs safely.
Ergonomic equipment is used whenever
possible to reduce potential injuries.
Contractors and sub-contractors are required
to follow all regulatory rules and regulations
as they relate to personal protective
equipment when working on Avista systems.
Employee To Retiree: A Benefit Plan
Avista has a defined benefit pension plan
covering substantially all regular full-time
employees at Avista Utilities. Individual
benefits under this plan are based on the
employee’s years of service and final average
compensation. The company’s funding policy
is to contribute at least the minimum amounts
that are required to be funded under the
Employee Retirement Income Security Act,
but not more than the maximum amounts
that are currently deductible for income
tax purposes.
2012
2011
2010
A combination of instructor led,
third-party and online training
programs are used throughout
the year to keep employees
properly trained and safe.
• A substance abuse prevention program,
including pre-employment, random,
for-cause and post-incident segments;
• Operator Qualification training for gas
employees to ensure safe operation of
gas systems;
• OSHA required training in craft work areas;
and
• Pre-job review and orientation for contractors
awarded bids on Avista properties.
Company Contributions To Defined
Benefit Plan (Pension) 2008-2012
2009
We conduct numerous training programs
internally and externally as required for
employee and contractor safety by OSHA,
DOT, DOSH and OREOSHA.
Other programs that ensure a safe workplace
include:
2008
In addition, Avista has developed Standards
Manuals that include safe work practices
materials and procedures.
44
$
26
$
21
$
48
$
28
$
million
million
million
million
million
$
million
11
Our Company
Governance
Governance Structure
The board of directors of Avista Corp. has long
adhered to governance principles designed to
assure the continued vitality of the board in
the execution of its duties. The board is
responsible for management oversight and
providing strategic guidance to the company.
The board believes that it must continue to
renew itself to ensure that its members
understand the industry and the markets in
which the company operates. The board also
believes that it must remain well-informed
about the positive and negative issues,
problems and challenges facing the company
and markets so that the board members can
exercise their fiduciary responsibilities to the
company’s investors and other stakeholders.
The board committees are Audit Committee,
Governance/Nominating Committee,
Compensation & Organization Committee,
Finance Committee, Energy Committee,
Environmental & Operations Committee and
Executive Committee. Information about
these committees is available online at
avistacorp.com.
Composition Of The Board
Independence
According to the company’s Articles of
Incorporation, the board will consist of no
more than eleven directors, as determined by
the board from time to time. The majority of
the board will consist of directors who meet
applicable independence requirements of the
New York Stock Exchange (“independent
directors”), which will be determined by the
board on an annual basis. Members of the
board are elected annually.
It is the policy of the board that a majority
of the directors will be independent from
management. Independence determinations
are made on an annual basis at the time the
board approves nominees for election at the
next annual meeting and, if a director joins
the board between annual meetings, at
that time.
The board does not have a policy as to
whether the role of CEO should be separate
from that of chairman. The board selects the
chairman in a manner that it determines to be
in the best interests of the company and its
shareholders. This flexibility has allowed the
board to determine whether the role should
be separated based on the individuals serving
and circumstances existing at that time. The
board believes that it needs to retain the
ability to balance the independent board
structure with the flexibility to appoint as
chairman someone with hands-on knowledge
of and experience in the operations of the
company. The board periodically examines its
governance practices, including the separation
of the offices of chairman and CEO.
As of Dec. 31, 2012, there were 11 members
of the board, 10 of whom are independent.
The chairman of the board is the president
and CEO of Avista Corp.
Code Of Ethics
We strive to achieve the
highest business and personal
ethical standards, as well as
compliance with the laws and
regulations that apply to our
business.
Doing business based on integrity and
principle-based conduct are essential
values for Avista’s board and employees.
The company’s Code of Ethics provides
the framework for our decisions and
our operations.
12
Our Company
It is the obligation of each and every member
of the board and each officer and employee
of Avista to become familiar with the goals
and policies of the company and integrate
them into every aspect of our business. Our
standard has been, and will continue to be,
that of the highest ethical conduct.
Communicating With The Board
Shareholders and other interested parties
may send correspondence to the board
or individual directors through the
Avista Corporate Secretary’s office. All
communications will be forwarded to the
person(s) to whom it is addressed unless it is
determined that the communication does not
relate to company or board business, is an
advertisement or other solicitation, is frivolous
or offensive, or is otherwise not appropriate
to deliver.
Shareholder proposals, in writing, may be
delivered to the company’s Corporate
Secretary. Specific information about the
process to do this can be found in the
company’s proxy statement.
Reporting Suspected Violations
The message hotline number (1-877-861-6690)
provides an alternate point of access for
serious concerns regarding possible breaches
of the Code of Ethics, corporate policies,
business ethics or environmental practices
(except environmental spills).
Compensation Of Directors
Directors’ compensation is determined by
the board, based on recommendations of
the Governance/Nominating Committee.
Members of management who are also
directors will not receive additional
compensation for their service as directors.
The board believes that it is important for the
interests of the board to be aligned with the
company’s shareholders and, accordingly, a
portion of directors’ compensation will be
provided and must be held in company stock.
Conflicts Of Interest
The company requires its board of directors,
officers, employees, consultants,
representatives and agents to avoid conflicts
of interest, or even the appearance of such,
between their obligations to the company and
their personal affairs. None of these persons
shall have an interest, position or relationship
with any person, firm or corporation with
whom the company does business or
competes, if such interest, position or
relationship would influence or might be likely
to influence the actions of such individual in
the performance of his or her duties.
Board Membership Criteria
The Governance/Nominating Committee
annually reviews with the board the
composition of the board as a whole and
recommends, if necessary, steps to be taken
so that the board reflects the appropriate skills,
attributes and characteristics required of
board members all in the context of an
assessment of the needs of the board and the
company at the time. In conducting this
assessment, the committee considers diversity,
retirement age, skills, experience, expertise
and such other factors as it deems appropriate.
Say-On-Pay
Shareholders voted in 2011 to have the
non-binding advisory vote on the company’s
executive compensation program appear
annually in the company’s proxy statement.
At the May 2012 annual meeting, Avista’s
shareholders approved the company’s
executive compensation program. Every three
years shareholders will have the opportunity
to determine how frequently the vote on “say
on pay” will be included in the company’s
proxy statement.
13
Our Company
Awards and Recognitions for
•Idaho Governor’s Proclamation — Cabinet
•Employer of the Year, small real estate
groups — International Right of Way
•First Place — Governor’s Safety Conference
Avista in 2012
Association
•Award of Excellence — Veterans
Administration Medical Center, Spokane,
Wash.
Gorge Hydroelectric Project’s contribution to
state of Idaho and the Northwest Region
Pole Top Rescue Competition
•Leadership in Innovation Utility Sponsor
Award — Washington Industrial Energy
Leaders Award
•Coyote Springs 2 named a winner — Pacific
Gas and Electric (PGE) Third Annual
Sustainability Challenge
•Tree Line USA Award — Arbor Day
Foundation
•19th Tree City USA Award
— Moscow, Idaho
•Community Caring Award — Spokane
Valley Chamber of Commerce
•Named to the top 100 Best Green
Companies to Work for in Oregon
— Oregon Business Magazine
•Special Recognition Award and named as
one of the 50 Greenest Companies in
Washington — Seattle Business Magazine
•Received a Best in Class Sustainability
Achievement Award, small cap utilities —
Employees receiving special recognition
included:
•Tim Mair, Spokane assistant natural gas
•Scott Wilson, senior engineer II, recognized
as a senior member of the Institute of
Electronics and Electrical Engineers.
•Mike Tatko, regional business manager,
Lewis-Clark area, received the Aletha Pabst
Award from Lewis-Clark State College for
significant volunteer contributions.
•Kent Bradley, process improvement
facilitator, named Operations Management
Volunteer of the Year by the APICS
Northwest Association.
• Clint Kalich, Randy Barcus, Ron Gray,
Steve Fry, Scott Kinney, Kevin Christie,
Bruce Folsom, Neil Colwell and Larry LaBolle
received special commendations from
Idaho Governor C.L. “Butch” Otter for
their contribution to the Idaho Strategic
Energy Alliance.
manager, received the Fritz Bernsten Award
from the Washington Utility Coordinating
Council for exceptional service in promoting
utility danger awareness.
• Steve Vincent, regional business manager,
Oregon, received the Inspiration Award from
Southern Oregon Regional Economic
Development Inc. for his volunteer
endeavors.
Target Rock Advisors Sustainability Awards
14
Our Company — By The Numbers
Total Workforce By Employment Type As Of Dec. 31, 2012
2012
2011
2010
2009
2012
2011
2010
Full time
1,518
1,441
1,401
1,390
Part time
77
84
75
76
Temporary
43
44
47
27
Student
25
9
12
18
Other
9
16 19 22
Training Programs
2009
Pre-Line School Total students graduated
Hours of training
Credits awarded per student
73
45,552
49
73
45,552
49
70
43,680
49
64
39,936
49
48
10
99,840
4,310
57
10
118,560
6,172
Apprentices — All crafts
Total number of apprentices trained
Number of active programs
Hours of training on the job
Hours of classroom training
59
10
120,640
3,961
41
9
85,280
2,269
Journeyman Training
Electric/Generation
Gas refresher - hours
7,587
1,417
3,540
1,565
8,773*
1,840
* In 2010 Avista added crane operator training and certification, and fork lift training, dramatically increasing the number of training hours for apprentices
1,880
1,824
15
Safety
2012
Vehicle
incidents per
million miles
driven7.31
2011
6.03
2010
7.8
2009
2008
9.16
9.14
Work-related
injuries per
200,000
hours
worked5.64
6.42
3.73
4.27
4.52
Lost-time
incidents per
200,000
hours
worked1.78
2.5
1.68
1.62
1.35
Employee
fatalities0
0
0
0
1
Injuries to
the public
3
2
0
1
0
16
Strategic Objectives
An integral part of our work at Avista is to establish a clear line of sight for employees from the
work they do every day to the outcomes that bring the most value to our customers, our
shareholders and our communities. The following objectives have been established to
meet that goal.
Initiatives
Target
2012 Goal
Actual
Action
Customer Satisfaction
Consistently maintain customer satisfaction as measured
through the Voice of the Customer
90% Satisfied
and very satisfied
Exceeded — 93%
System Reliability
Reliability Index- three common industry indices:
Customer Average Interruption Duration Index (CAIDI),
System Average Interruption Frequency Index (SAIFI) and
Customer Experiencing Multiple Interruptions (CEMI3).
Reliability index
of 1.0 or better
Exceeded — 1.13
Electric Energy Efficiency Acquire cost-effective conservation to meet Washington
Biennial Conservation Plan
(I-937)
34,041,000
kWh saved
Exceeded —
51,435,610
kWh saved
Target was changed midyear to more closely align
with state requirements
Natural Gas Energy
Efficiency
Acquire cost-effective conservation to help Wash./Idaho
customers get the most value for the energy they choose
to use
1,216,910
therms saved
Not met —
845,262
Some incentive and
rebate programs were
suspended due to
decreased price of
natural gas
Generation Plant
Efficiency
Ensure that generation, transmission and distribution
93% availability
systems reliably and cost effectively meet customer energy
requirements
Not met — 85%
Maintenance and
operation issues at
Noxon Rapids being
resolved
17
Initiatives
Target
Goal
Actual
Action
Employee Engagement
Maintain engagement drivers that keep our employees
involved and committed to Avista
75%
engagement
Exceeded — 81%
engagement
Employee Injuries
Continuously reduce the number and severity of incidents
for a 13-month rolling period
10% reduction
Exceeded — 14%
reduction
Lost Time Incidents
10% reduction
Exceeded — 40%
reduction
Vehicle Incidents
10% reduction
Not met — 12%
increase
Employee Volunteerism
Be an integral part of the communities we serve and a
contributor in mutually beneficial ways
50,000 hours
Exceeded —
50,700 hours
Natural Gas Dig-Ins
Maximize awareness and adoption of safe practices that
support our response to public safety
Reduce by 10%
per 1,000 locates
Natural Gas Public
Safety Education
100% of
stakeholders
Exceeded — 19%
reduction per
1,000 locates
Under assessment Implementing enhanced
programs and tracking
Natural Gas Emergency
Response
Meet natural gas
response targets
on 93% of calls
Develop an action plan
with Central Safety
Council and key
employees
Exceeded —
97.3%
18
Utility Operations
Delivering Reliable Energy Services And The
Choices That Matter Most To Our Customers
Customer
SERVICE
Customer satisfaction is an essential element in all we do at
Avista. From our Call Center representatives to the line workers
and servicemen in the field, from finance to environmental,
every Avista employee has an impact on our interactions with
customers. We are committed to their satisfaction. One way
we measure customer satisfaction is through a quarterly
survey — “Voice of the Customer” — to measure and track
the satisfaction of customers who have contact with Avista
through the Call Center and/or work performed through an
Avista construction office.
Customers are asked to rate the importance of several key
service attributes (time for connection to a representative,
representative being courteous and friendly, representative
being knowledgeable, being informed of job status, leaving
property in condition found, etc.) and then to rate Avista’s
performance with respect to the same attributes. Customers
are also asked to rate their satisfaction with the overall service
received from Avista. Customer verbatim comments are also
captured and recorded. Customer satisfaction ratings have
exceeded 90 percent in each of the past 13 years.
19
Utility Operations
Our Customer
Service Intent
Statement reflects
our vision of how to
best interact with
our customers.
At every point of
interaction with
Avista, I feel that
I am dealing with
people that listen
and genuinely care
about me.
20
Utility Operations
Serving our customers
Electricity
When problems arise, they are competent, fair and
responsive problem solvers. I trust them to be proactive
and always be there with information and advice that
allows me to control my energy costs. I can rely on Avista.
They are efficient,
open and honest,
communicate
appropriately,
and are easy to
do business with.
A Diverse Generation Mix
Avista maintains a diversified generation
portfolio, including hydroelectric, biomass,
natural gas, coal and wind.
The company complies with renewable
portfolio standards in Washington’s Energy
Independence Act by using qualified
renewable resources, renewable energy
credits (RECs) or a combination of both to
meet the following annual targets: 3 percent
of energy used to meet customer demand in
Washington by Jan. 1, 2012, 9 percent by
Jan. 1, 2016, and 15 percent by Jan. 1, 2020.
To meet the 2012 targets, Avista added
qualifying renewable generation capacity
with upgrades at our hydroelectric projects,
purchased RECs and contracted with the
Palouse Wind Project. In addition, to meet
future requirements, we helped facilitate a
change to Washington’s Renewable Portfolio
Standards to qualify a major portion of the
energy generated from biomass at our
Kettle Falls plant.
21
Utility Operations
Wind From The Palouse Brings Power And
Economic Vitality To The Region
Beginning full commercial operations in
December 2012, the Palouse Wind project in
Rosalia, Wash., is expected to contribute to
the local economy for years to come. Avista
has a 30-year power purchase agreement
with its owner, First Wind, for the energy from
this project.
The 105 megawatt (MW) project is included in
Avista’s resource portfolio and has the capacity
to generate enough renewable wind energy to
power the equivalent of approximately 30,000 of
Avista’s customers’ homes. This is the first wind
project built in our service territory, and it will
help us achieve our goal of meeting customers’
energy needs reliably and responsibly, while
continuing our legacy of renewable energy.
The project features 58 state-of-the-art
Vestas V100-1.8 MW turbines installed at the
project site some 80 miles south of Spokane,
Wash. During construction, the Palouse Wind
project pumped more than $25 million of direct
spending into the regional economy, created
hundreds of construction-related jobs and drove
significant revenue for local businesses.
As the project achieves commercial operation,
First Wind also reported the following
milestones and associated economic benefits:
• More than $25 million spent directly with local
businesses in Whitman County and the Inland
Northwest.
• Over 600 different contract personnel logged more than 190,000 work- hours on the project site, which averaged 210 workers during
peak construction.
•
•
The project was successfully built without any injuries or time lost by workers.
With Palouse Wind fully operational, Whitman County will receive approximately $12 million
over the next 20 years in property tax
revenues, or approximately $700,000 annually,
which can be used to lower tax rates, improve
schools, maintain roads and enhance
local services.
22
Utility Operations
Smart Grid Initiatives — Enhancing
Reliability And Energy Efficiency
Avista is one of a handful of utilities across the
country to receive multiple grants from the
Department of Energy through the American
Reinvestment and Recovery Act. The smart
grid projects’ goals are to modernize our grid
with upgraded substations, and new software,
sensors and switches that will allow us to
operate our distribution systems more
efficiently and reliably. As a result, we’ll
improve reliability, reduce losses and automate
activities that have been performed manually.
The lessons we learn will inform how we
upgrade our systems going forward.
Equally important, our customers will
experience fewer and shorter power outages
and save money on their electric bill. They’ll
gain access to information to make more
informed decisions about how they use
energy. Ultimately, they’ll have a better
customer experience with Avista.
in the electric distribution system while
reducing the need for new generation facilities.
Work Force Training Program
Avista is partnering with utilities and
colleges in the Inland Northwest to develop
the Smart Grid Workforce Training Program.
Enhancements include upgrading Avista’s
training center with a substation and
distribution training facility for smart grid
technology. In addition, online curriculum
offerings will be shared among utilities
and colleges in Washington, Idaho, Oregon
and Montana.
Pullman Smart Grid Demonstration Project
Avista has joined with regional partners, led by
Battelle Northwest, to implement a Smart Grid
Demonstration project in Pullman, Wash. The
intent is to assess how smart grid technology
can enhance the safety, reliability and
efficiency of energy delivery on a regional
level and how customers and the utility will
interact with new online information
management technologies.
Spokane Smart Circuits Project
The three-year Smart Circuits project upgraded
the electric distribution system throughout
Spokane, Wash. The funding allowed us to
accelerate the pace of upgrades and complete
the project earlier than planned. The
outcomes of the project will be to reduce
system losses, improve reliability and efficiency
23
Utility Operations
Electric And Magnetic Fields —
A Public Health Discussion
The emergence of smart grid projects across
our country has renewed interest in the issue
of electric and magnetic fields (EMF). The
sources of these fields have been associated
with extremely low frequency (ELF) or powerfrequency EMF emitted by common household
appliances, household wiring and electronic
devices, electric transmission and distribution
facilities and equipment, and, more recently,
from radio frequencies (RF) emitted by wireless
smart grid technologies.
We understand the concern the public, and
our customers, may have about the potential
health effects of smart grid technologies. Any
issue involving the possibility of adverse health
effects from our operations needs to be
looked at seriously and carefully. For more
than two decades, Avista has had a program
to monitor health research and developments
related to EMF associated with electric
distribution and transmission lines, as well as
EMF associated with radio frequency signals,
in order to understand as much as we can
about possible health effects of exposure.
These technologies include advanced metering
technology, also called “smart” meters.
Concerns about whether or not exposure to
RF and EMF poses risks to human health have
increased with the installation of advanced
meters in some parts of the U.S.
It’s important to understand that we are
surrounded by electric and magnetic fields
in our daily lives, and we are exposed to
these fields in varying intensity all day long.
We make judgments about the technology
we use founded on what we know today.
Avista is committed to providing safe and
reliable electric service for our customers and
a safe work environment for our employees.
We have an ongoing
commitment not just to
comply with local, state and
federal safety standards in
our operations, but to lead
by example doing more than
just what’s required of us.
Based on current research,
Avista is confident that the
advanced metering and other
smart technologies do not pose
additional safety or health
hazards to our customers.
In addition:
• The advanced metering equipment is
installed outside the home and is designed
to operate intermittently.
• The low power radio frequency signals that
are used by advanced meters are similar to
those used by cordless telephones or other
electronic devices common inside homes
today, including cell phones, baby monitors
and wireless routers (Wi-Fi).
• The radio frequency power level of advanced
meters is significantly lower than those
associated with many of these household
items, and falls well below state and federal
safety standards, including the exposure
standards for wireless devices adopted
in 1996 by the Federal Communications
Commission.
Avista is committed to staying current on
these issues, and we will continue to:
• Monitor EMF research and proceedings so
that up-to-date information is available to
technical staff and management;
• Provide comprehensive information on this
issue to customers and members of the
public on request;
• Maintain an EMF working group to monitor
information, develop responsible policies,
and initiate appropriate programs and
responses to public concern; and
• Measure power-frequency EMF levels in
homes in response to concerns expressed
by customers.
24
Utility Operations
Natural Gas Customer Safety —
Automating Gas Leak Response
Serving Our Customers
Natural Gas
Avista provides natural gas services to
more than 320,000 customers in eastern
Washington, northern Idaho and parts of
southern and eastern Oregon.
The natural gas pipeline replacement program
currently underway is a result of Avista’s
commitment to maintain a safe and reliable
natural gas pipeline system. We will replace
approximately 730 miles of natural gas
pipeline, which was installed prior to 1987.
In addition, we plan to perform preventative
maintenance on 16,000 service taps over
the next 20 years through a structured
replacement program in Washington, Idaho
and Oregon. This kind of stepped program
helps control impacts to neighborhoods and
manages construction resources more
effectively than simply repairing leaks as they
occur or are discovered through annual
leak surveys.
Since 2009 Avista has reduced its overall gas
leak response time by 13 percent, or an
average of seven minutes per event. We
consider response time to be the window
between when a customers first calls us about
a gas odor and when an Avista gas employee
arrives on site. This improved speed is the
direct result of implementing an automated
call-out system, fine-tuning dispatch and work
order processes and more accurate tracking of
work completed.
underground pipes and wires before starting
digging projects.
To help get the word out, Avista partners with
first-responders, and community, education
and professional groups to raise awareness for
the 811 service, the free, one-call number for
locating underground utilities. In 2012, there
were 6.4 dig-ins on Avista’s natural gas system
for every 1,000 locates, a decrease of 19 percent
from the previous year. Avista’s goal for 2013
once again is to reduce the number of dig-ins
by a minimum of 10 percent to increase public
safety and reduce company costs.
Public Safety Programs — Providing Natural
Gas Safely And Reliably
The safety of the public is at the forefront
of Avista’s planning for natural gas safety
awareness and education. Our plans are
reviewed annually, updated and enhanced
to meet current compliance standards. Our
employees take the safety message into the
community through civic presentations, booths
at community fairs, and interaction and training
with first responders, among other activities.
Call Before You Dig
The national phone number is easy to
remember — 811. But each year, thousands of
residential and commercial dig-ins happen
because people fail to call the number to locate
The 811 Chopper — a specially detailed motorcycle
visited Spokane and made appearances in high
visibility events, including the Lilac Torchlight
Parade, to increase public awareness of the
need to call before you dig.
25
Utility Operations
Resource And Business Continuity
Planning
Planning To Ensure Short And
Long-Term Energy Availability
And Reliability
Avista’s biennial Integrated Resource Plan (IRP)
for electric and natural gas services guides the
utility’s resource acquisition strategies and the
overall direction of resource procurements for
a 20-year planning horizon. The IRP provides a
snapshot of the company’s resources and
forecasted loads, and guidance regarding
resource needs and acquisitions.
Avista’s management, along with stakeholders
from the Technical Advisory Committee (TAC),
play a key role in guiding the development
of the IRP. TAC members include customers,
commission staff, consumer advocates,
academics, utility peers, government agencies,
and other interested parties. The TAC provides
significant input on modeling, resource
assumptions and the general direction of the
planning process.
The 2011 Electric IRP
Over the next 20 years, Avista anticipates
adding almost 100,000 retail customers with a
1.6 percent annual growth in electric demand.
The utility plans to meet this
growth with a mix of new
renewable and natural gas-fired
generation resources, efficiency
upgrades at existing generation
facilities and various energy
efficiency measures.
The IRP describes strategies to meet projected
energy demand and renewable portfolio
standards through energy efficiency and a
careful mix of new renewable and traditional
energy resources. This plan helps us balance
meeting customers’ needs for safe, reliable
energy with satisfying renewable portfolio
standards over the next 20 years.
The plan calls for Avista to continue system
upgrades and improvements to deliver energy
to our customers more efficiently and reliably.
It calls for Avista to obtain new resources in a
responsible and environmentally sound
manner and at a reasonable cost to
our customers.
Each IRP is a thoroughly researched and
data-driven document to guide responsible
resource planning for the utility. The IRP is
updated every two years and looks 20 years
into the future.
Some highlights of the 2011 plan include:
• A signed contract for the power from the
105 MW Palouse Wind project in Whitman
County, Wash., helps meet the requirements
in Washington state’s Energy Independence
Act, as well as provides a new resource to
serve our customers’ increasing energy
needs.
• An additional 42 aMW of wind or qualifying
renewable energy credits are required
annually by 2021.
• Energy efficiency measures are expected to
save 310 aMW of cumulative energy over
the 20-year IRP timeframe. This aggressive
effort could reduce load growth to half of
what it would be without these measures.
• 750 MW of new natural gas-fired
generation facilities are required between
2018 and 2031.
• Three grid modernization programs are
projected to save 5 aMW of energy by 2013.
• Transmission upgrades will be needed to
deliver the energy from new generation
resources to the distribution lines serving
customers. Avista will continue to participate
in regional efforts to expand the region’s
transmission system.
26
Utility Operations
Planning To Meet Long-Term
Need-Electricity
The 2011 Preferred Resource Strategy (PRS) is
a plan for a mix of additional wind generation,
energy efficiency, upgrades at existing
generation and distribution facilities, and new
gas-fired generation. A contract for the power
from Palouse Wind project located near
Oaksdale, in southeast Washington, will fulfill
Avista’s RPS obligations through 2019. Avista’s
first thermal acquisition would be a gas-fired
peaking plant in 2019; total gas-fired acquisition
is expected to be 754 MW over the IRP
timeframe.
The 2011 plan splits natural gas-fired
generation between simple- and combinedcycle plants in anticipation of a growing need
for system flexibility to integrate variable
resources such as wind. Efficiency
improvements, both on the customer and utility
sides of the meter, are at the highest expected
level in our planning history. Estimated total
capital needs for generation resources in the
PRS are $1.7 billion over the next 20 years.
Conservation and system efficiency spending
will increase over time; a total of $1.4 billion will
acquire 310 aMW over 20 years.
The 2013 Electric Integrated
Resource Plan
The 2013 IRP will be published in August 2013
with updates to our plan. It will be available on
our website.
Planning For Natural Gas
The Integrated Resource Plan (IRP) for our
natural gas operations was updated in 2012.
The IRP identifies a strategic natural gas
resource portfolio that includes both supplyside and demand-side resources to meet
customer’s needs for the next 20 years in a
safe, reliable, and least cost manner
considering multiple levels of uncertainty.
To meet this goal, our philosophy is to develop
a plan that incorporates an appropriate
balance of price certainty and prudent cost
management utilizing our portfolio of supply
contracts, storage and firm pipeline
capacity rights.
We are fortunate to be able to
work collaboratively with our
Technical Advisory Committee,
which is comprised of members
from regulatory staff, industry
stakeholders, customers, peer
utilities, and company
representatives from
several departments.
Avista’s 2012 natural gas IRP was filed with
the Washington, Idaho, and Oregon state
commissions on August 31, 2012. Highlights
of the plan include:
• Avista has sufficient natural gas resources to
meet customer needs well into the future.
The first expected resource needs occur in
2029 for Oregon and 2030 for Washington
and Idaho.
• Demand continues to be lower than
previous plans, driven by lagging economic
recovery and declining use per customer
across our service territory.
• This prolonged flat demand poses a risk that
should load growth increase sooner or
greater than expected the need for
additional resources would accelerate.
•The long term forecasted price of natural
gas remains relatively low, and while this is
good for customers it challenges the cost
effectiveness of natural gas demand side
management programs.
•The preferred portfolio relies on existing
pipeline capacity to meet forecasted deficits.
However, regional gas needs (both for LDCs
and gas-fired turbines) could reduce access
to these existing resources. Avista will monitor
and participate in regional infrastructure
discussions as they are made available.
The experience of this group provides a robust
forum for the exchange of ideas and
discussion of issues and risks that affect the
planning process.
27
Utility Operations
Planning To Ensure Continuation
Of Services
Avista operates in a part of the country
where heavy snows, ice storms, fire storms,
volcanoes, floods and earthquakes are
genuine probabilities. In addition to these
natural threats to normal business operations,
Avista must also consider possible man-made
threats such as sabotage, terrorism and
cyber-related issues. In order to ensure our
continued utility operations, we have
implemented numerous systems solutions.
Our incident response, business
continuity and disaster recovery
plans are designed to safeguard
life and property.
They are also designed to provide for the
restoration of electric and natural gas services
and the continuation of business functions
critical to the support of Avista operations in
case of natural disasters, accidents or other
realized threats to the company.
Emergency Operating Plan (EOP)
Critical departments that provide essential
services as part of the company’s business
have developed Emergency Operating Plans
(EOP). These plans are designed to enable
Avista operations to successfully respond to an
emergency or severe disruption, resuming
operations in a timely and orderly fashion.
Emergency response activities are focused on
responding to the initial event and subsequent
impacts in an effort to prevent further damage
to life, property, and the environment, and to
stabilize the situation by activating recovery
and back-up process and procedures.
Emergency Action Plans (EAPs)
Even though the probability of a major
structural emergency at any Avista
hydroelectric facility is remote, we have
developed Emergency Action Plans (EAPs) to
help ensure public safety at our hydroelectric
facilities. The plans are designed to minimize
potential dangers to people and property
downstream of the dams. Based on computer
simulations of catastrophic failures at each
site, the EAPs provide guidelines for
notification and early warning in the event
of an actual or potential dam breach. Each
EAP is evaluated annually.
Enterprise Business Continuity Program (EBCP)
Avista has developed an Enterprise Business
Continuity Program (EBCP) to facilitate
emergency response, business continuity, and
disaster recovery activities simultaneously
across multiple departments in response to
any scope of disruption to normal business
operations. The purpose of the EBCP is to
provide an all-hazards framework for crisis
communications, emergency response,
business continuity, and disaster recovery
activities in response to a man-made or
natural event, and, when necessary, specific
communications and operational procedures
for implementing certain emergency response
activities. It serves as the governing structure
for the coordination of Avista’s EOPs during an
emergency response situation, using the
Incident Command Structure for enhanced
coordination, planning and response
execution. Business continuity and disaster
recovery activities may occur concurrently with
the emergency response activities of the EOPs
and are focused on sustaining Avista’s critical
business processes.
28
Utility Operations
Our EBCP ensures that
emergency response activities
occur in a coordinated and
timely fashion, maximizing
resources and reducing further
disruption to normal business
operations.
Business Continuity Plans
Avista prepares and regularly updates
business continuity plans for its critical
business functions. The Business Continuity
Plans include incident response, crisis
communications and business specific
recovery procedures.
Disaster Recovery
Avista has established system and data
backup and recovery capabilities to support
the recovery of critical business functions.
Exercising The Plans
Avista exercises its business continuity plans
and conducts testing of the disaster recovery
site and strategy annually.
Alternate Facilities/Work Area
Recovery Strategy
Avista has implemented an alternate
facilities recovery strategy as part of the EBC
program to support the relocation of staff
and resumption of business should one or
more facilities be impacted by an event.
Enterprise Business Continuity
Program Management
Avista employs a cross-section of subject
matter experts, including a Certified
Business Continuity Professional, that
participate in the maintenance, exercise and
review of the program and specific plan
elements to ensure that Avista maintains the
highest standards for business continuity.
Board of Directors Updates
The Enterprise Business Continuity Program
objectives and results are reported to the
Board of Directors annually.
Energy Efficiency And Conservation
Programs
Avista has more than 30 years of experience in
offering energy efficiency programs, building
shared value and shared success for our
residential, commercial/industrial, and limited
income customers. Our approach to energy
efficiency is based on two key principles: to
pursue all cost-effective electric and natural
gas energy savings by offering financial
incentives for most energy saving measures
with a simple financial payback of over one
year, and to use the most effective means to
deliver energy efficiency services to customers.
These mechanisms are varied and include:
• Prescriptive programs or “standard offers”
such as high efficiency appliance rebates;
• Site-specific or “customized” analyses at
customer premises;
• “Market transformational,” or regional,
efforts with other utilities;
• Low-income weatherization services through
local Community Action Agencies;
• Low-cost/no-cost advice through a multichannel communication effort; and
• Support for cost-effective appliance
standards and building codes.
29
Utility Operations
Washington And Idaho DSM
Programs And Outcomes
(All data are preliminary numbers, which will
be finalized in the annual performance report
scheduled for June 2013.)
Avista’s Demand-Side Management (DSM)
services provide over 20 energy efficiency
programs (representing over 250 measures)
to the company’s Washington and Idaho
electric and natural gas customers funded
through the DSM Tariff Rider. Avista’s DSM
programs delivered 77.9 MWh and more than
840,000 therms in efficiency savings in 2012.
This achieved 156 percent of the company’s
electric Integrated Resource Planning (IRP)
goal and 34 percent of Avista’s natural gas
IRP goal.
Approximately 73 percent
of the 2012 local program
expenditures of $27.5 million
were returned to customers
in the form of rebates
toward energy efficiency
measures installed.
In addition to these local programs, Avista
funds regional programs, in partnership with
other utilities, through the Northwest Energy
Efficiency Alliance (NEEA) to deliver additional
savings to the company’s customers. Including
NEEA funds, 2012 energy efficiency funding
was over $29.7 million. We work in
partnership with our Advisory Group, which is
comprised of a wide variety of industry and
regulatory professionals, and the dedication of
experienced, talented and professional staff.
During 2012, over 16,000 rebates for
residential energy efficiency projects were
processed benefiting approximately 15,000
households. Over $5.9 million in rebates were
provided directly to customers to offset the
cost of implementing energy efficiency
upgrades. Residential programs contributed
18.8 MWh and approximately 440,000 therms
in energy savings. For non-residential
customers, the company processed
approximately 4,400 energy efficiency project
submissions in 2012, resulting in the payment
of $14.2 million in rebates paid directly to
customers to offset the cost of their energy
efficiency projects. These projects contributed
59.1 MWh and 400,000 therms in savings.
Oregon DSM Programs
And Outcomes
Avista provides only natural gas to customers
in our Oregon service territory. The company’s
DSM portfolio is divided between three
segments: residential weatherization,
residential equipment and commercial/light
industrial. Each segment makes up
approximately one-third of the total DSM
goal. The 2012 target from our Integrated
Resources Plan (IRP) called for savings of
316,792 therms. The combined results for
all programs totaled 277,402 therms — a
12.9 percent decrease over 2011 results
and approximately 12.4 percent under the
2012 IRP goal.
Approximately 68.4 percent of Avista’s 2012
DSM expenditures were returned to customers
in the form of direct incentive payments. In
addition, program participants received the
benefits of over $71,000 in commercial and
residential energy audits, which raises the
value of the return to customers to
72.1 percent.
Energy Efficiency In Avista’s
Facilities — Walking The Talk
Avista actively practices energy conservation
and efficiency in our buildings and facilities.
The focus of these efforts is to reduce energy
consumption and manage energy costs while
providing comfort to building occupants.
Over the last few years, Avista has made great
strides in improving energy efficiency and
reducing annual energy usage in our facilities
through a number of different projects.
30
Utility Operations
Some of these projects include:
• Lighting retrofit projects in a number of
areas to reduce kilowatt-hour usage and
take advantage of more efficient
lighting fixtures;
• Replacing aging HVAC systems to improve
energy efficiency and take advantage of the
controls that new technology offers; and
• Upgrading to high efficiency windows,
providing better insulation and helping to
reduce heat gain in the summer months.
Leading The Way In Energy Efficiency
Avista has embarked on a five-year program
to renovate the corporate headquarters
building, constructed in 1958. The project
includes asbestos removal, new HVAC and
lighting systems, as well as reconstruction of
office space to meet Leadership in Energy and
Environmental Design (LEED) standards.
LEED is an internationally recognized green
building certification system, providing
third-party verification that a building or
community was designed and built using
strategies aimed at improving performance
across all the metrics that matter most: energy
savings, water efficiency, carbon dioxide
emissions reduction, improved indoor
environmental quality, and stewardship of
resources and sensitivity to their impacts.
Following completion of construction on the
building’s third through fifth floors, Avista
received LEED Gold Certification for each floor
of the project. As the building renovation is
completed, floor-by-floor, plans call for the
second floor work to be submitted for LEED
certification in 2013 and the first floor
in 2014.
Avista’s Spokane Valley Service Center was
named an ENERGY STAR certified facility in
2012. As a certified facility, the Service Center
meets strict energy performance standards set
by EPA and uses less energy, is less expensive
to operate and causes fewer greenhouse gas
emissions than its peers. To qualify for the
ENERGY STAR, a building or manufacturing
plant must earn a 75 or higher on EPA’s 100
point energy performance scale, indicating
that the facility performs better than at least
75 percent of similar buildings nationwide.
The Service Center was one of four certified
in the Spokane area in 2012.
Through improving Avista’s
facilities with energy efficiency
projects, we have reduced our
annual energy usage and costs
by 33 percent from 2008 to
2012, with approximately
$226,603 in savings for 2012.
31
Utility Operations
Supply
Chain
Avista is committed to maximizing the value
created through timely, efficient, and effective
supply chain services delivered to meet the
needs of the customers and communities we
serve. We are committed to contracting via
competitive bidding processes to the
maximum extent practical. Our particular
interest is in doing business with and
providing opportunities to diverse suppliers
capable of providing goods and services that
satisfy our requirements at competitive prices.
In 2012, Avista initiated a Supplier
Relationship Management (SRM) program.
SRM is a comprehensive method to help
Avista catalog and manage a supplier list by
capturing data about suppliers via a
performance scorecard. Once submitted via
electronic form, the information is stored in a
database. Eventually, the database will
become a central repository for vendor
performance information that can be accessed
by all employees.
The SRM scorecard is a means through which
Avista can create sustainable, long-term
relationships with those who provide goods
and services to our company, while facilitating
two-way communication between the supplier
and Avista. Suppliers are measured on seven
categories: quality, delivery, cost/budget,
responsiveness/customer service, value, risk
and safety.
Supplier Relationship
Management is a key ingredient
to achieving optimum value in
terms of managing overall
supplier cost and cost
efficiencies for Avista.
Successful results coming from the use of the
SRM tool include reduced costs, reduced risks
and increased value. The process in time will
weed out poor performing suppliers, and it
will help us to manage suppliers at a more
objective level so they will be able to perform
to our expectations.
2012 SPENDING
W/ DIVERSITY SUPPLIERS
WAS $14.8
MILLION
or
3.77%
OF THE TOTAL LOCAL SPEND.
2012 SPENDING
ON LOCALLY-BASED SUPPLIERS
WAS $133.4
MILLION
or
35%OF
OUR TOTAL GOODS
& SERVICE SPENDING.
32
Utility Operations
Engaging Our
Stakeholders
Identification Of Stakeholders
Avista’s stakeholders are numerous and as
varied as the people they represent and serve.
We are focused on balancing our relationships
with all our stakeholders, helping us to
communicate more effectively and developing
services and partnerships that are most
beneficial and appropriate. Our stakeholders
include residential, commercial and industrial
customers; investors, financial analysts, credit
rating and financial institutions; active and
retired employees; residents of the
communities we serve and those of
neighboring cities and towns; non-profit and
low income advocates; federal and state
regulators; vendors; elected officials; media
channels; and other companies in the
energy industry.
We seek out and
encourage stakeholder
involvement in our
activities on a regular basis.
Approaches To Stakeholder
Engagement
Across the company, Avista values the
interaction we have with our stakeholders.
Some of these interactions are:
• Issue-Focused Meetings with key groups
e.g. Technical Advisory Committees, Energy
Efficiency Advisory Group, community town
hall meetings, etc.;
• Customer Outreach With Two-Way
Communications — issue-focused emails,
social media channels (Facebook, Twitter,
Avista Blog, online chats), listening posts,
focus groups, surveys, community meetings,
print and electronic media channels,
electronic and print newsletters, bill stuffers,
call-in information lines, etc.;
• Customer Satisfaction Surveys — asking
1,600 residential and business customers
each year who have completed a transaction
with the company to report on components
of the interaction as well as their overall
satisfaction. In addition, we subscribe to J.D.
Power for customer satisfaction information,
and Avista conducts an annual customer
tracking survey to assess perceptions and
attitudes about the company.
• Regular Meetings With Media Editors And Staff to discuss industry and utility issues
and a commitment to responding to media
inquiries within 30 minutes.
Key Topics Raised By Stakeholders
Customers have told us their key concerns
include energy pricing, natural gas pricing and
executive compensation. We have developed
a comprehensive, multi-channel customer
communication program which is intended to
increase customers’ awareness of the ratemaking process, rate components, energy
efficiency, energy assistance and what Avista is
doing to manage our costs.
Stakeholder Participation In Decision
Making For Energy Planning And
Infrastructure Development
We seek out and encourage stakeholder
involvement in our activities on a regular basis
on a variety of issues, including transmission
and distribution projects, implementing
vegetation management programs and the
requirements of our hydroelectric licenses.
Avista works with federal and state agencies,
conservation organizations, and area tribes to
bring a variety of perspectives and interests
to the table in implementing federal and state
mandated environmental measures associated
with our dams on the Spokane and
Clark Fork rivers.
33
Utility Operations
Representatives of federal and state agencies
address issues such as water quality,
endangered species and fish passage. Tribal
representatives are concerned with protecting
the area’s cultural and natural resources. Other
stakeholders represent local non-profits,
community groups and customers.
For our energy planning and infrastructure
development, the Technical Advisory
Committee (TAC) provides opportunities for
input from three main groups of stakeholders.
These groups include 1) those who provide
technical input and review of the resource
options, system modeling and results (utility
commission staff, planners from other utilities,
academics and consultants); 2) those who
have an interest in a particular aspect of our
Integrated Resource Plan (environmental
groups, resource developers and government
agencies); and 3) members from regional
planning organizations (Northwest Power and
Conservation Council and Western Electricity
Coordinating Council).
In addition, we are in partnership with our
energy efficiency Advisory Group which is
comprised of a wide variety of industry and
regulatory professionals, as well as Avista staff
members. This group advises us on planning
and implementing a broad range of energy
efficiency programs.
34
Utility Operations — By The Numbers
Reliability
2012
2011
2010
2009
2008
Average
outage
restoration
time
(minutes)121
108
118
126
113
Average
outages per
customer1.14
1.48
1.23
1.52
1.4
2011
2010
2009
Productivity
2012
Customer
meters per
employee
(Electric and
natural gas
meters)424
439
451
454
2008
470
35
Installed Capacity, Generation Capability
Net Energy Output By Primary Energy Source
Hydro Projects
Present Generating
Capability (MW) Nameplate
Rating (Installed
capacity)(MW)
Net Energy
Output
(MWh)
10.2
15.0
17.5
18.0
35.2
89.0
270.5
610.0
1065.4
10.0
14.8
26.4
14.8
32.0
81.6
265.2
518.0
962.8
60,000
102,000
106,000
83,000
202,000
513,000
1,199,000
1,823,000
4,088,000
Kettle Falls GS
Kettle Falls CT
Boulder Park
Coyote Springs 2
Northeast CT
Rathdrum CT
Colstrip Units 3 & 4
Total Thermal
50.0
6.9
24.0
278.3
56.3
149.0
222.0
786.5
50.7
7.2
24.6
287
61.8
166.5
233.4
831.2
209,000
1,499,000
2,864,000
Total Generation Properties
1,851.9
1,794.0
–
Upper Falls
Monroe Street
Nine Mile
Post Falls
Little Falls
Long Lake
Cabinet Gorge
Noxon Rapids
Total Hydro
Thermal Projects
7,000
1,142,000
7,000
* Even though projects are located in Idaho and Washington, neither the IPUC nor the WUTC exercises exclusive jurisdiction since none of our company-owned generation assets are currently assigned to a specific state where they are located. Generation assets are split with about 65
percent being attributed to Washington and about 35 percent to Idaho.
36
Average Generation Efficiency Of Thermal Plants By Energy Source
Thermal generation is approximately 44 percent of Avista’s total generation capability.
Each facility has a specific purpose in Avista’s diversified generation portfolio — whether
it is for economic or load demand efficiencies.
Plant Name
Energy Source
Heat Rate
(Btu/kWh)
Boulder Park
Natural Gas
9,025
Colstrip
Coal 11,950
Coyote Springs 2
Natural Gas
6,827
Kettle Falls
Biomass
13,500
Kettle Falls CT
Natural Gas
8,750
Northeast
Natural Gas
12,825
Rathdrum
Natural Gas
11,950
Average
Plant Availability By Energy Source
Plant
Energy Source
Availability
Boulder Park*
Natural Gas
99.7%
Colstrip
Coal 92.8%
Coyote Springs 2
Natural Gas
84.6%
Kettle Falls
Biomass
86.3%
Kettle Falls CT
Natural Gas
99.7%
Rathdrum*
Natural Gas
89.4%
Northeast CT*
Natural Gas
96.4%
* Peaker unit — used only in times of significant energy demand
37
Length Of Above And Underground Transmission By Voltage
Miles of Transmission Line
Miles
230 kV
115 kV
500 kV
Miles of Distribution Lines
685
1,534
500
18,300
Miles Of Natural Gas Transmission And Distribution
115 miles of natural gas transmission mains
7,670 miles of distribution mains
Avista does not own any interstate gas transportation pipelines,
only contractual rights, and receives gas at over 60 points
along interstate pipelines.
Electric
And Natural Gas Loads
Electric average hourly load (aMW)
Peak electric native load (aMW)
Summer (retail)
Winter (retail)
Peak natural gas day demand (Dth)
1,075
1,579
1,554
213,370
38
Total
Water Discharge By Quality And Destination — Thermal Generation
Plant
Actual Annual
Water Use
Discharge per
NPDES*
Permit
Boulder Park Domestic use only
Zero discharge
facility
Colstrip — Coal 5.0 billion gallons
Zero discharge
facility
Coyote Springs 2 — Natural gas CT34.4 million gallons
To Port of
Morrow, Ore.
wastewater
treatment facility
Kettle Falls — Biomass/Natural Gas 158 million gallons
24.4
million gallons
Northeast — Natural Gas Domestic use only
Zero discharge
facility
Zero discharge
Rathdrum — Natural Gas Domestic use only
facility
* National Pollution Discharge Elimination System 39
Direct And Indirect Energy Consumption Of
Generating Resources
Source
Kettle Falls Boiler
Colstrip United 3 & 4 Rathdrum
Northeast
Boulder Park
Coyote Springs 2
Kettle Falls CT
FuelEquity/control
Wood
Coal
Oil
Natural Gas
Natural Gas
Natural Gas
Natural Gas
Natural Gas
100%
15%
15%
100%
100%
100%
100%
100%
Total
362,090.00
949,474.00
1,508.00
92.54
2.76
48.88
7,783.94
3.62
Units
Tons
Tons
Bbl
MMscf
MMscf
MMscf
MMscf
MMscf
Gigajoules
3,249,719.73
17,067,921.94
9,362.44
100,446.10
2,995.80
53,056.03
8,448,955.93
3,929.27
2011
Preferred Resource Strategy*
Resource By the End of Year
Nameplate (MW)
NW Wind
2012
SCCT 2018
Existing Thermal
Resource Upgrades
2019
NW Wind
2019-2020
SCCT 2020
CCCT 2023
CCCT 2026
SCCT 2029
Resource Total
Energy (MW)
120
83
35
75
4
3
120
35
83 75
270 237
270 237
46 42
996
739
* The preferred Resource Strategy will be updated with the publication of the 2013 Integrated Resource Plan August 31, 2013.
40
2011
Preferred Resource Strategy (Cont.)*
Efficiency Improvement By the End of Year
Peak Reduction
Energy (aMW)
Distribution Efficiencies
2012-2031
Energy Efficiencies
2012-2031
Efficiency Improvements Total
28
419
447
13
310
323
* The preferred Resource Strategy will be updated with the publication of the 2013 Integrated Resource Plan August 31, 2013.
Public
Safety
Dig-Ins 2012
2011
2010 2009
Locates80,629 69,547 75,113 70,597
Dig-ins to Avista
Underground Gas Lines 517
550
690
528
Goal of Number/1,000
Locates
Actual Number/1,000
Locates
7.1
8.26
–
–
6.4
7.9
9.18
7.5
National Average
3.83.7 ––
41
Energy Efficiency — Avista Facilities — Spokane, Wa
kWh in (thousands)
Electric (kWh) Use Reduction
900
900,000 850
850,000 800
800,000 750,000 750
700,000 700
650,000 650
600,000 600
550,000 550
500,000 500
450,000 450
400,000 400
Electric (kWh) Use ReducCon 900,000 850,000 800,000 750,000 700,000 650,000 600,000 550,000 500,000 450,000 400,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan FebMarApr MayJun Jul AugSep Oct NovDec
2006 200620072008200920102011
2007 2008 2009 2010 2011 2012 2012
42
Energy Efficiency Programs — Customer Savings
Washington/Idaho
2012
2011
2010
2009
18.8 million
59.1 million
12.8 million
49 million
26 million
43 million
35 million
46.2 million
Electric (kWh saved)
Residential
Non-Residential
Natural Gas (therms saved)
Residential
Non-Residential
440,000
400,000
Oregon
911,811
975,704
1.1 million
791,993
2012 IRP Target Achieved Savings
(Therms) (Therms)
1.1 million
890,150
% of
Target
Existing residential
State-Mandated Weatherization
Prescriptive Residential Equipment
Residential DSM Portfolio Total 98,402
98,402
196,804
85,771
98,355
184,126
87
100
94
Existing Commercial/Industrial
Commercial/Industrial DSM
119,988
93,276
78
Grand Total
316,792
277,402
88
43
Environmental
Stewardship
Avista’s Commitment To Protect And Enhance
Natural Resources Is As Strong As Ever
Founded on clean, renewable hydropower in 1889, Avista’s
vision of environmental stewardship has always shaped our
operations. From being one of the first utilities in the nation to
hire a biologist, to building the first biomass power generating
plant of its kind in 1983, to the agreements and licenses that
shaped our operations for the Clark Fork and Spokane River
hydroelectric projects, our vision for being good stewards has
been our constant guide. And our preferred approach employs
collaboration and partnership with a wide range of
stakeholders, including state and federal agencies, non-profit
advocacy organizations, community, educational and civic
groups, Native American Tribes and interested citizens.
44
Stewardship of the
Waterways
Spokane River Project
Avista owns and operates six hydroelectric
plants on the Spokane River. On June 18,
2009, the Federal Energy Regulatory
Commission (FERC) issued a 50-year operating
license to Avista for our Spokane River
Hydroelectric Project, which comprises five of
Avista’s Spokane River plants (Post Falls, Upper
Falls, Monroe Street, Nine Mile and Long
Lake). The license includes a variety of
measures, many based on multi-stakeholder
agreements, designed to protect and enhance
natural resources connected with the project
and the Spokane River. The sixth plant, Little
Falls, is operated under separate authority
from the U.S. Congress and an agreement
with the Spokane Tribe. It is not licensed
by FERC.
Avista, with key partners, is implementing
the FERC license conditions over the next
half-century. These conditions will help protect
and enhance fish and their habitat, wetlands,
water quality, recreational opportunities,
wildlife habitat, and cultural and aesthetic
resources connected to the Spokane River.
Under the license to operate, Avista and
the Coeur d’Alene Tribe will work together
through a settlement agreement over the term
of the new license and beyond to ensure
continued efficient operation of an important
hydroelectric resource. The agreement allows
Avista and the Tribe to work together as they
protect and enhance the Tribe’s natural and
cultural resources and provide it with
appropriate compensation for Avista’s use
of its land and waters. Avista’s commitment
to enhancing relationships with the area’s
indigenous people is reflected in the
company’s appointment of a full-time
Tribal liaison.
Spokane River Recreation Improvements
Enhance The River Experience
For Avista, our long-standing commitment
to river stewardship integrates caring for the
environment, water, habitat, fish and wild
life. It’s also important that people have the
opportunity to enjoy the beauty and the fun
that can be found along the river and its banks.
Work is underway to enhance boating,
camping, fishing and other recreation
opportunities along the Spokane River, including
creating boat-in campsites, interpretive displays
and enhancements to overlook areas, new
docks, shoreline stabilization, boat ramp
extensions and trail improvements. The work of
environmental stewardship is part of our 50-year
federal license to operate our Spokane River
hydroelectric projects. At the same time, the
enhanced facilities and recreation opportunities
bring enjoyment to those who visit the river.
45
Clark Fork River Project
Avista’s Clark Fork Hydroelectric Project
includes Cabinet Gorge and Noxon Rapids
dams located on the Clark Fork River in
northern Idaho and northwestern Montana.
2012 marked the 14th year of successful,
collaborative implementation of the Clark Fork
Settlement Agreement, a multi-stakeholder
agreement for managing and protecting the
natural resources of the area. The agreement
resulted in a 45-year operating license from
FERC to operate Cabinet Gorge and Noxon
Rapids. The license was unprecedented both
for incorporating a settlement agreement for
a major project in its entirety and for being
issued a year ahead of the expiration of the
existing Cabinet Gorge license.
As part of the Clark Fork Settlement
Agreement, and with the oversight of the
Clark Fork Management Committee, we
began implementing protection, mitigation
and enhancement measures in March 1999.
In the first 14 years of implementation, over
45 stream habitat restoration projects have
occurred on 25 different tributaries; bull trout
populations are increasing; recreational
facilities have been created and improved;
and nearly 2,850 acres of bull trout, wetlands
and riparian habitat have been protected. In
addition, water quality and cultural resource
protection continue. After implementing a
range of fish passage measures and
conducting studies, Avista is working on
permanent fish passage facilities at
these dams.
includes Noxon Rapids Dam in Montana and
Cabinet Gorge Dam in northern Idaho.
Caring For Fish And Natural Resources
Is… Natural
If you’ve ever dipped a fishing line into any
of our local lakes or rivers you’re already aware
of the great natural resources we enjoy in the
Northwest. Because Avista operates hydroelectric
facilities on the Clark Fork River, we’ve made a
commitment to the environment as part of our
daily operations.
Avista is involved in an ongoing collaborative
project on Lake Pend Oreille (Idaho) to reduce
the population of invasive lake trout. Lake
Pend Oreille was once a world-class fishery
for rainbow trout, bull trout and kokanee. In
recent years, the lake has been taken over by
lake trout (also called mackinaw), which do not
coexist well with native bull trout, and which
prey on kokanee, depleting the food sources for
rainbow and bull trout. This project offers angler
incentives and brings in commercial netters to
“fish out” the invasive lake trout. Since this
program’s inception, more than 150,000 lake
trout have been removed from the lake.
Avista helps fund the Lake Pend Oreille project
through our Clark Fork Project license, which
The family life of a pair of ospreys fascinated
online visitors to the Sandpoint Osprey Cam.
The project is a partnership between Avista, the
City of Sandpoint (Idaho), Keokee Publishing
and Northland Communications. Northern Idaho
is home to one of the country’s largest nesting
population of ospreys, and too often they make
their homes in or near electric facilities. As
part of an upgrade to the city park, old light
46
poles were torn down and with them several
nesting places. Avista helped build new nesting
platforms in the park, enticing the osprey to
a safer location than nearby power poles. Our
ongoing programs in raptor protection include
public education and outreach, retrofitting our
poles to support nesting raptors and adopting
management practices that protect birds and
other wildlife.
Improving Water Quality
Avista protects and improves water quality
in our watersheds, as a part of our ongoing
operations, as well as part of implementing
the Clark Fork and Spokane hydroelectric
project licenses.
We participate in the Washington Department
of Ecology’s Total Maximum Daily Load (TMDL)
process to improve dissolved oxygen levels in
the Spokane River and Lake Spokane. The
TMDL is a water quality improvement plan
that limits the combined amount of nutrients,
such as phosphorus, that can be discharged
into the Spokane River from point sources and
non-point sources. While Avista is not a
discharger of nutrients, Lake Spokane, the
reservoir created by Avista’s Long Lake Dam,
along with other portions of the river, have
seasonal levels of dissolved oxygen that do not
meet Washington’s numeric water quality
standards. Measures incorporated into Avista’s
license require us to implement reasonable
and feasible methods to improve dissolved
oxygen levels in Lake Spokane.
In addition, we carry out construction and
maintenance activities in ways that protect
surface and ground waters and which prevent
storm water run-off. We handle and store oils
and other chemicals in responsible manner
and follow management best practices in our
day-to-day operations.
Our operations culture
encourages employees to look
for ways to improve work
processes, while reducing the
use of any potentially
hazardous materials.
Specific 2012 water quality activities on
the Spokane River Project included:
• Completed nutrient monitoring in Lake
Spokane;
• Finalized a dissolved oxygen water quality
attainment plan, which focuses on
reasonable and feasible measures that could
improve dissolved oxygen in Lake Spokane;
• Provided funding to Idaho Department of
Environmental Quality and the Coeur
d’Alene Tribe to complete water quality
monitoring in Coeur d’Alene Lake; and
• Continued with the implementation of the
draft tube aeration plan at Long Lake dam
to improve dissolved oxygen (DO) levels
downstream. Aeration was used for 74 days
during power generation and helped keep
the DO above the state standard of 8 mg/L
in the turbine discharge water, a
significant success.
In 2012, Avista completed the following
work on aquatic weeds for the Spokane
River Project:
• Partnered with the Idaho Department of
Environmental Quality to re-survey six bays
on Coeur d’Alene Lake for milfoil and
completed a survey of the Spokane River for
aquatic weeds and mapped milfoil habitat
in accordance with the Coeur d’Alene Lake
Aquatic Weed Management Plan for NonTribal Waters;
• Worked collaboratively with the Coeur
d’Alene Tribe to place a half acre of bottom
barriers to prevent milfoil growth and
removed two acres of milfoil through
scuba-diver suction, treated over 400 acres
of milfoil with an approved herbicide with
90 percent efficacy and completed a dye
study to better understand wind-induced
water movement; and
• Treated 15 acres of aquatic weeds with
herbicide, removed approximately 800-900
individual flowering rush plants and
completed pre-treatment surveys for the
winter reservoir drawdown in Lake Spokane.
47
On our Clark Fork Project, Avista continued
to participate with Montana State University
Extension Service, Montana Department
of Agriculture, Sanders County Weed
Board, Sanders County Commissioners,
Green Mountain Conservation District,
Noxon-Cabinet Shoreline Coalition, U.S. Forest
Service, and Montana Fish Wildlife and Parks
on the Aquatic Invasive Species (AIS) Task
Force to address discovered invasive aquatic
noxious vegetation in the Noxon Rapids and
Cabinet Gorge reservoir. After two years of
herbicide trials and a year of no treatment
due to the high and extended runoff
conditions, herbicide was applied in 2012 to
approximately 175 acres on Noxon Reservoir.
These areas were surveyed six weeks post
treatment and showed a high level of
mortality of AIS, with minimal impact to native
vegetation. These areas will be surveyed once
again one year post treatment, which will
provide a better indication on the effectiveness
of the treatment.
Avista participated in the acquisition and
placement of 30,000 square feet of aquatic
vegetation barriers at key locations within the
project. We also partnered with the Montana
Department of Agriculture in the operation of
a mandatory watercraft inspection station. In
addition, we funded water quality monitoring
in the Clark Fork basin.
We also protect water quality in countless
construction projects throughout our service
territory each year.
From natural gas delivery
extensions to new electrical
service, when we are
performing on-the-ground
construction, we follow
best practices related to
storm water management
and water quality protection.
Avista also implements the requirements
of several National Pollution Discharge
Elimination System (NPDES) permits. In 2012,
we eliminated one of these discharges
completely by installing an injection well at
our main business campus. This well now
returns non-contact cooling water back to
the aquifer to protect the water quality of
the Spokane River.
For specific details on land managed,
protected habitats, biodiversity impacts and
strategies, see our Spokane River Project FERC
License, and Clark Fork Project FERC License
online at avistautilities.com.
Our protection, mitigation and enhancement
expenditures in 2012 for implementing the
Spokane River Project License were $4.2
million. For the Clark Fork River license
implementation, we spent $6.9 million. These
totals reflect environmental affairs activities
associated with license implementation only.
Avista practices environmental stewardship
in all of our daily operations, including
generation and production, and the costs of
doing so are included in our capital and
operations, and maintenance budgets.
48
Climate And Environmental
Impacts
The latest report of the National Resources
Defense Council, “Benchmarking Air
Emissions of the 100 Largest Electric Power
Producers in the United States,” has ranked
Avista among the cleanest utilities in the
country when it comes to greenhouse gases.
With 48 percent of our net generation
capability from hydroelectric resources, a
majority of our thermal generation fueled
with natural gas, wind and biomass, and a
long-standing commitment to energy
efficiency, Avista is one of the lowest utility
emitters of greenhouse gases in the country.
Climate Policy Council
Avista’s Climate Policy Council is an
interdisciplinary team of management and
other employees from key departments
across the company.
The council meets monthly to report on
various issues including climate policy, federal,
state and regional climate initiatives and
legislation. The council also facilitates internal
and external communications regarding
climate change issues, analyzes policy impacts,
anticipates opportunities and evaluates
relevant strategies for Avista, and develops
recommendations on climate-related policy
positions and action plans.
Longer term efforts can include emissions
tracking and reporting, providing
recommendations for greenhouse gas
reduction activities, evaluating the merits
of different reduction programs, engaging
in regulatory and legislative policy making,
and benchmarking climate change policies
and activities.
While climate change and
potential impacts are difficult
to predict, Avista continues
to focus on providing a
responsible generation
resource mix for our customers,
including a wide range
of conservation and
efficiency measures.
Greenhouse Gas Emissions
Avista reduces greenhouse gas emissions
through conservation and improving the
efficiency of our operations, transmission and
distribution system, and generation capacity.
We are avoiding associated greenhouse gas
emissions through the 120 average
megawatts of energy efficiency on our system,
as well as through system upgrades as a result
of our smart grid projects, green fleet program
and commute trip reduction participation.
While Avista has not established a specific
greenhouse gas emissions reduction goal, we
are undertaking voluntary efforts that provide
both environmental and economic benefits. In
two states where we have operations —
Washington and Oregon — greenhouse gas
reduction goals have been enacted, but the
states have not passed legislation to
implement the goals. We will align our
program with state and federal requirements
as they evolve.
CO2 Emissions Allowances And
Reporting
Avista is not currently obligated by any federal
or state regulatory agencies to provide or
purchase allowances through any carbon
trading network.
Mandatory greenhouse gas emissions
reporting to the EPA and the Oregon
Department of Environmental Quality started
in 2011 for the 2010 reporting year. Avista
is also required to report greenhouse gas
emissions to the Washington Department of
Ecology for 2012 in October 2013. We have
a greenhouse gas monitoring plan in place
that documents data collection and emission
calculations and specifies quality assurance
procedures to be used prior to submitting
greenhouse gas data to these agencies.
We have met all reporting requirements.
49
Reducing Vehicle Impacts
For the year 2012, Avista employees reduced
their drive-alone miles by 191,000 miles and
eliminated more than 186,000 pounds of
carbon dioxide. These results are in line with
the prior year’s performance, although slightly
decreased due to the changing economic
environment and the fluctuating price of gasoline.
2012
Drive-alone miles eliminated
2011
2010
Washington’s Commute Trip Reduction (CTR)
law was adopted by the legislature in 1991
and incorporated into the Washington Clean
Air Act. Its purpose is to improve air quality,
reduce traffic congestion, and minimize
energy consumption by encouraging
employees to use an alternative commuting
methods rather than driving alone. This law
and the subsequent Commute Trip Reduction
Efficiency Act of 2006 require employers with
more than 100 employees at a single worksite,
in counties with 150,000 or more residents,
to promote eco-friendly transportation
options, including riding the bus, carpooling,
vanpooling, bicycling, walking, working from
home, compressed work weeks and flexible
work schedules.
2009
Avista’s Commute Trip Reduction (CTR)
Program educates and encourages employees
to make informed decisions about reducing
their “drive alone” miles — the miles an
employee travels to their work site as a solo
occupant in a vehicle.
191,027
186,513
Carbon Dioxide pounds eliminated
196,310
188,458
160,617
154,504
152,714
8401*
* Numbers reported for 2009 reflect carbon monoxide eliminated in pounds
50
Green Fleet
Avista’s green fleet initiative aims to improve
productivity and reduce our carbon footprint
by streamlining our fleet practices. By adopting
clean fleet practices and cleaner forms of
transportation, we can be more efficient and
provide a safer, healthier working environment.
Avista’s green fleet strategy focuses on
activities within the following areas:
• Maintaining company vehicles to maximize
efficiency, eliminating the unnecessary use
of inefficient vehicles, and purchasing and
using the “right-sized” vehicle for a
particular job or service;
• Exploring green vehicle purchasing practices
that include the use of cleaner fuels and
technologies, including compressed natural
gas (CNG), and electric vehicles; and
• Educating employees to drive fewer and
more efficient miles, use the most efficient
vehicle to perform the job and reduce
unnecessary idling time.
In 2012, Avista added 20 CNG-fueled half-ton
and three quarter-top pick-up trucks to our
fleet, with more planned for 2013. We
completed construction of a new CNG fueling
station at our Mission Avenue service center
in Spokane. We also initiated construction
of a second CNG fast-fill station at our
Dollar Road natural gas service center in
Spokane. It is expected that this facility will
be fully-operational and offer customer fueling
capability in 2013. As Avista evaluates the
feasibility of fueling stations in the future,
increasing customer demand for costeffective, reduced carbon CNG will continue
to be an important consideration.
We continue to encourage employee use
of our two electric-hybrid vehicles and one
electric-only vehicle to give us more
information on the performance of these
alternative fuel vehicles. Additionally, we have
placed three Level 2 charging stations in our
community for the public’s use. However, with
limited availability of electric vehicles in the
region at this time, the feedback on their use
and performance has been minimal.
Avista’s fleet consists of more than 1,200
assets, including trucks, trailers, backhoes
and other pieces of equipment. Our fleet
department works closely with supply chain
to incorporate new purchasing strategies that
help ensure Avista receives the best value for
our investments.
Over the past 12 months, Avista has been hard
at work constructing a new CNG fueling station
to deliver CNG – compressed natural gas – to
our fleet of CNG-powered trucks and service
trucks with natural gas by-pass.
CNG is a safe, clean-burning, cost-effective
fuel for fleet vehicles like those that meter
readers, construction techs, and electric
and natural gas servicemen drive. Avista has
purchased 54 replacement Chevrolet Silverado
half-ton and three quarter top pick-up trucks
that run on CNG; most of these vehicles have
been deployed in the Spokane area. Trucks are
also being put into service in Pullman (Wash.),
Klamath Falls (Ore.), Roseburg (Ore.) and
Clarkson (Idaho).
Commercial fleet vehicles using CNG seem
to operate best on multiple-stop, route-type
travel, which is what our meter readers and
construction technicians drive every day – out
from base, with many stops along the way and
then return to the garage.
And in keeping with Avista’s commitment to
environmental stewardship, CNG is a cleanerburning fuel than gasoline or diesel, so it’s better
for the air we breathe. It also helps our country
become less dependent on foreign oil. All of our
natural gas supply is produced in North America.
51
CNG-fueled vehicles have a range of about
250 miles, averaging 11 to 13 miles per
gasoline-equivalent gallon, approximately the
same as a gasoline-powered truck. In addition
to the CNG tank, the trucks typically have a
26-gallon gasoline tank that provides back-up
fuel and extended vehicle driving range. An
added benefit of note is the cost savings from
cheaper CNG fuel prices, which makes these
vehicles cost-efficient as well. Typically, a CNG
gas-gallon equivalent costs about $2 less than
gasoline at the pump.
Managing PCBs
Manufacture of Polychlorinated Biphenyls
(PCBs) was banned in the United States in
1979 due to concerns about the toxicity of
these chemicals. However, until that time,
manufacturers incorporated PCBs in a wide
range of products and materials, many of
which are still in use across the country.
Ongoing concerns regarding PCBs, including
their persistence in the environment, have
resulted in extensive regulation.
Avista manages PCBs and mineral oil that
contains low levels of PCBs in a manner that
meets or exceeds the standards of the federal
Toxic Substances Control Act (TSCA) and
Washington state’s stringent regulations.
Our goal is to minimize risk
associated with PCBs, to avoid
spills or releases, and to clean
up any releases to levels
of non-detection.
Federal and state regulations allow the
ongoing use of PCB-containing electrical
equipment. However, we decided to take a
more conservative approach to reducing risks
associated with PCBs.
The vast majority of the equipment in service
at Avista is non-PCB. Our first wave of removal
efforts focused on equipment with levels at
500 ppm or greater of PCBs. This type of
equipment, as identified, was removed and
properly disposed of during the 1980s. During
the 1990s and early 2000s, we focused on
removal of equipment containing between 50
and 500 ppm of PCBs. At levels less than 50
ppm, this equipment is considered “non-PCB”
by the Environmental Protection Agency.
We have undertaken these removals
strategically, taking advantage of other
planned work or scheduled maintenance.
There are rare exceptions to elimination for
unique equipment that we must maintain as
backup; such equipment is appropriately
tested, and often retro-fitted, and stored.
More recently we completed a sampling/
testing program to identify every single piece
of PCB-containing equipment in our electrical
distribution system, where information was
unavailable from the original manufacturer.
We are now scheduling
the removal and replacement
of all electrical overhead
distribution equipment with
detectable levels of PCBs, an
approach that exceeds any
regulatory requirement.
We are, once again, conducting these efforts
in concert with system and efficiency upgrades
and in coordination with our wood pole
management plans. In this way, we are
achieving increased environmental protection
along with reliability improvements in a costeffective manner, benefitting our customers
and our communities.
In 2012, we disposed of 25.87 pounds of
PCB wastes in accordance with the Toxics
Substance Control Act (TSCA) via incineration.
52
Managing Hazardous
Waste Streams
“RCRA waste” represents hazardous waste as
defined in the federal Resource Conservation
and Recovery Act and applicable state laws.
We look for ways to reduce the generation of
hazardous waste and to properly manage
waste streams. Until 2011, our largest source
of hazardous waste was from aerosol cans
that were collected from throughout the
company. We achieved a 98 percent reduction
of this waste stream in 2012 due to an
increased emphasis on using the full content
of aerosols and a newly purchased device to
capture residual content from cans. We
manage all federal (RCRA) and state
(Washington) waste to meet or exceed
regulations. This includes, as appropriate,
treatment or disposal at permitted
disposal facilities.
“Non-RCRA” wastes include waste streams
that are not deemed “hazardous,” but which
we manage as special wastes. These include
waste oils, greases, antifreeze, and a range of
miscellaneous wastes that can be recycled,
blended into fuels, or responsibly disposed.
These are managed and disposed of in
ways to meet or exceed state and
federal regulations.
“Universal wastes” include specific waste
streams designated by federal and state law
that are excluded from being treated as
“hazardous” if they are managed according to
specific standards. These include items such as
fluorescent light bulbs. We manage all
universal wastes in accordance with
these standards.
Spill Response/Pollution Prevention
Avista takes its responsibility
to protect the environment
seriously, and we hold
ourselves accountable to
this responsibility.
That’s why the Environmental Compliance
group at Avista is on call 24 hours a day, 7
days a week to respond immediately to
environmental emergencies. In the case of an
oil spill originating from any of our facilities,
lines or poles, we immediately implement
emergency spill procedures and begin working
with the appropriate local, state and federal
agencies to assess the situation and
begin clean-up.
Avista crews and personnel respond directly
to typical, smaller spills, such as those that
happen when a car hits a utility pole. For
larger spills, Avista has on-call contracts with
emergency spill response companies. These
firms specialize in clean-up and are able to
mount appropriate responses. Avista is also a
voluntary member of the Spokane River
Response Group, organized by the
Washington Department of Ecology, a
collaborative effort made up of local, state,
and federal oil spill responders as well as
members of industry. This group was
developed to address the need for oil spill
preparedness and response along the Spokane
River. Members of the group share resources
and collaborate on training to make
coordination on spill responses efficient and
effective. We also participate in local
emergency planning committees in
Washington, Idaho and Montana.
Avista responds to all spills, regardless of size,
location or oil type. The goal is to safely and
efficiently eliminate any potential harm to fish,
wildlife, natural resources, water supplies
or people.
53
Recycling
A Good Steward Pays Attention To The Details
— And When It Comes To Recycling, Avista Is
Truly Focused
In partnership with a community non-profit
organization, Avista’s recycling program
employs full-time a number of
developmentally disabled workers who help
us recycle paper, corrugated cardboard,
aluminum cans, plastic and glass bottles,
magazines, newspapers, wood reels, phone
books and batteries.
Avista is also committed to recycling nonhazardous electrical equipment and materials.
Working closely with recycling companies,
aluminum, copper, lead, and other ferrous and
non-ferrous metals are reclaimed and recycled.
Not only is it good for the environment, but
our recycling efforts have saved Avista refuse
disposal costs.
Environmental Fines And Sanctions
While subject to a wide range of permit
reviews and inspections in the four states
in which we operate, Avista had no
environmental fines or sanctions in 2012.
CANS
PAPER
CARDBOARD
2012
2012
2012
2011
2011
2011
2010
2010
2010
2009
2009
2009
MATERIALS
RECOVERY
SCRAP SOLD
FOR RECYCLING
805 TONS
1,121 TONS
1,009 TONS
973 TONS
ALUMINUM
576 LBS
765 LBS
1,000 LBS
819 LBS
OFFICE PACK
37 TONS
63 TONS
74 TONS
78 TONS
54
Environmental Stewardship — By The Numbers
Carbon Footprint
Rate Of CO2 Emissions Of Company-Owned Generation
CO Lbs/MWh
2
100 Largest U.S. Electric Power Producers
Avista
Source: Natural Resources Defense Council “Benchmarking Air Emissions
of the 100 Largest Electric Power Producers in the U.S.” 2010
55
lbs CO2e/MWh
Avista’s CO2e Emission Intensity
1200
Source: Avista FERC Form 1;
1000
World Resources Institute/World
Business Council on Sustainable
Development
800
600
2007
2008
2009
2010
2011
2012
2007
2008
2009
2010
2011
2012
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
400
Avista’s CO2e Emissions
3.00
2.00
1.00
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0.00
1990
million metric tonnes CO2e
4.00
56
Significant Air Emissions By Type And Weight Per MWh — 2012
Facility
Fuel Type
CO2e SO2
NOx
Hgvoc
Kettle Falls
Rathdrum
Northeast
Boulder Park
Coyote Springs 2
Kettle Falls CT
Wood
Coal
Oil
Natural Gas
Natural Gas
Natural Gas
Natural Gas
Natural Gas
6,076
1,491,348 651
5,024 150
2,653 422,555 197 3
645
2
0
0
0
2
0
278
1,246
1
3
0
1
73
0
0.005
0.117
0
–
–
–
–
–
9
44
0
0
0
2
3
0
Totals
1,910,400 652
1,602
0.122
58
Note: All values are in metric tons.
Emissions
Per MWh
MWh
CO2eSO2
NOx
Hgvoc
Total Energy
Electricity Generation
6,951,264
612
0.21
0.950.00004 0.02
Fossil Fuel
Electricity Generation 2,653,806
1,602
0.54
2.490.0001 0.05
Note: All values in lbs parameter/MWh except where noted
57
At Avista, We Are Invested In Our Customers
And The Communities We Serve
For more than 120 years, Avista has been an active partner,
ally and advocate for our customers in the communities we
serve — both as a utility that provides essential energy
services and as the people who live, play and work just
down the street. We believe that bringing value to our
customers and attaining our business goals go hand- inhand. And when we can provide assistance to people and
organizations that are making a difference, all the better.
58
Avista community investments are made
through corporate and foundation donations
and are not included in customer rates. Avista
gives back a portion of the profits it is allowed
to earn, reinvesting in the communities we
serve through donations of all kinds.
Investments are also made through the time,
talent and treasure that our employees put
into the organizations in the towns they call
home throughout our service territory —
eastern Washington, northern Idaho, southern
and eastern Oregon, and Sanders County,
Montana. Advocating for and facilitating the
availability of energy assistance for those most
in need is an important part of our role in the
community. In addition, we are actively
involved with chambers of commerce and
other civic groups to enhance the economic
vitality and therefore the quality of life in the
communities we serve.
Philanthropy
In 2012, Avista was named as one of the top
75 corporate philanthropists in the state of
Washington by the Puget Sound (Wash.)
Business Journal for the third consecutive year.
Giving through Avista corporate and Avista
Foundation donations in 2012 totaled
$1.62 million.
Employee Giving
The heart and soul of Avista can be found in
our employees. They are not only devoted to
doing an exceptional job for our customers
but they wholeheartedly dedicate themselves
to community service in a way that is
inspirational and downright contagious.
In 2012, their remarkable generosity resulted
in more than 50,000 hours of volunteer
service to more than 1,000 organizations,
both large and small. From hanging holiday
lights along the streets of Wallace, Idaho, to
leading the annual summer community
celebration in Deer Park, Wash. From teaching
Junior Achievement curriculum in schools in
Spokane, Wash. and Medford, Ore., to
helping at the Lentil Festival in Pullman, Wash.
Employee Volunteerism Hours
Four-Year Trend In Volunteering
2012
2011
50,700
hours
52,738
hours
2010
2009
44,000
49,000
hours
hours
Partnering With Others For Kids And Families
The beginning of school can be full of
anticipation for most children. But for some,
it’s less than exciting when family incomes
won’t stretch far enough to include new school
supplies. One hundred-twenty Avista employees
partnered with the Salvation Army in Spokane
at “Backpack for Kids.” It is the largest school
supply give-away of its kind in the region, and it
provides an excellent opportunity to also reach
low-income families with helpful energy savings
information and free weatherization materials.
In all, more than 3,700 backpacks filled with
school supplies and nearly the same number of
totes filled with energy-saving materials and
information were given out to more than 1,500
59
families. Capt. Kyle Smith, Spokane Corp Officer,
noted, “Having such a wonderful group of
volunteers from Avista was extremely helpful.
One of my favorite words is ‘synergy.’ (Yesterday)
I think we experienced synergy in action. We all
achieved far more working together than we
could have done apart.”
Increasing The Impact Of
Employee Gifts
Avista’s matching gifts program is a tangible
way for our company to support and
recognize the “treasure” that employees
generously donate to non-profit organizations.
As our employees invest in the community, the
company is able to increase the impact of that
investment to those non-profit organizations
valued by our employees through the
matching gifts program of the Avista
Foundation. All eligible gifts up to $200 each
year receive a dollar-for-dollar match —
doubling the benefit and the impact for
community organizations. Funding for this
program is from the Avista Foundation and
is not included in customer rates.
2012 Avista Employee Matching
Gifts Program
$20,638
In Total
Matching
Grants
67
A Legacy Of Community Support
— The Avista Foundation
The Avista Foundation was formed in 2002
to create a legacy of investment for the
communities served by Avista and to
serve as the primary charitable vehicle
for the company.
The foundation focuses its giving on grants
that strengthen communities and enhance the
quality of lives of the people served by our
company. Emphasis is in the areas of:
• Education — supporting K-12 education
particularly in the fields of science, math and
technology; and higher education including
scholarships.
• Vulnerable and limited income populations
— providing assistance to those on limited
incomes and support for initiatives to reduce
poverty.
• Economic and cultural vitality — supporting
projects that help our communities and
citizens to grow and prosper.
Avista corporate donations focus primarily on
energy assistance and economic vitality-related
initiatives that benefit our customers and
communities.
Organizations
Receiving
Matching Grants
182
Employees
Participating In The
Health And Human Services
Total 2012 Giving — $624,966
Avista joins with our employees to give
generously to causes and organizations that
make meaningful impacts for children, families
and communities. In the communities we serve
in Washington, Idaho and Oregon, Avista is
often ranked among the leading companies in
employee donations to United Way. In 2012,
Avista and our employees donated more than
$354,000 to local United Ways to help provide
essential funding for programs that promote
education, health and income stability.
More than giving of their treasure, our
employees give freely of their time and talent
each year through local United Way Days of
Caring. Employees in Spokane, as well as those
in Lewiston, Idaho, and Clarkston, Wash.,
headed out to local non-profits to participate
in hands-on projects that brought value to
organizations including 2nd Harvest Food Bank,
MATCHING GIFTS PROGRAM
60
the Boys and Girls Club and the Inland
Northwest Blood Center.
We are active members in our communities.
Being a leader in United Way giving makes our
communities better places to live for all of us.
Education
Total 2012 Giving — $389,683
Avista and the utility industry as a whole are
undergoing a transformation. Whether it is
shifts in government and regulatory policy, new
technologies or changing customer demands,
across the board the future of our company
is reliant on careers that need proficiencies in
science, technology, engineering and math.
The new Mobius Science Center, which
opened in September 2012, and Mobius Kids
Children’s Museum, both located in downtown
Spokane, provide opportunities to spark the
imagination and ignite learning and fun with
a focus on science, technology, engineering
and math (STEM). Avista’s partnership with
Mobius and Mobius Kids allows children to make
meaningful connections and discoveries about
the world around them, including capturing
their curiosity and imagination, inspiring
careers and engaging them in wanting
to learn. Avista employees have been involved
from the beginning, serving as board members,
supporting computer and digital integration, and
sharing exhibit development expertise.
Mobius is part of a community-wide
collaborative solution to get kids interested in
STEM activities at an early age and to keep that
interest growing through school and into their
careers. We know the importance of this firsthand at Avista where careers in engineering or in
the crafts require strong math skills for entry into
college or a pre-apprentice program.
61
Youth
Total 2012 Giving — $144,392
Washington State 4-H helps youth ages
5 to 19 develop foundational life skills like
problem-solving, communications, planning,
decision-making and team work through a
wide variety of experiences and opportunities.
Avista’s support of the National Youth Science
Day Experiment opened up the world of robots
for participants and gave them a glimpse into
the future of science, technology, engineering
and math.
Using paper, straws and cups, students had
two minutes to keep the Eco-Bot from leaving a
table-top boundary while it displaced rice that
represented an oil spill. Janet Edwards, 4-H STEM
specialist commented, “When young people are
presented with the challenge of using tiny robots
to preserve and protect the environment in a
simulated spill, that taps their critical and creative
thinking skills to evaluate the situation, explore
possibilities, test ideas and measure
their success.”
Community Vitality
Total 2012 Giving — $300,650
Having a grocery store close to home is
something most of us take as much for granted
as flipping a switch and having the lights come
on. But for the residents of rural LaCrosse,
Wash., the nearest food store is a 30-mile car
ride away. The federal government considers
these communities “food deserts” lacking
access to fresh, healthy, and affordable food. To
help address this important need the LaCrosse
Community Pride organization received a grant
from the Avista Foundation in support of the
renovation of the historic grocery store building.
Restoring and updating the nearly 100-yearold grocery building with energy efficient
lighting and equipment creates the opportunity
for a business to open, for jobs to be created
and for all residents, and most importantly low
income and elderly residents, of this rural area
to have easy access to purchase groceries.
It’s a shared success for Avista to participate
in this project as it gives new life to an historic
town structure, creates opportunities for
economic growth, and improves access to
healthy, affordable foods and helps eliminate
food deserts in eastern Washington. Enhancing
economic vitality in rural areas is challenging
even in the best of times. By bringing
together resources and expertise supporting
the development of sustainable projects and
strategies that work toward restoring and
revitalizing our small rural communities, we
can begin to address these important issues.
62
Economic and cultural vitality are important
to helping citizens and communities in our
service territory grow and prosper. KSPS fills
an important role in bringing entertainment,
information on a wide variety of issues and
lifelong learning opportunities to viewers of
all ages.
Arts and Culture
Total 2012 Giving — $129,032
The technology of broadcast television has
changed dramatically over the years, and
equipment that was state-of-the-art 25 years
ago no longer provides the reliability and
production quality that today’s viewers expect
and demand. An Avista Foundation grant to
the Friends of KSPS supports the Broadcast
Enhancement Project for KSPS, the non-profit
public broadcasting station, which serves more
than 4 million viewers in eastern Washington,
northern Idaho, northeastern Oregon, western
Montana and western Canada.
“KSPS is an essential part of the quality of life
that we enjoy in this region. Through quality
programs and services KSPS educates, informs,
engages and inspires a lifetime of learning
and exploration,” said Gary Stokes, executive
director of the Friends of KSPS. “This grant from
the Avista Foundation will assist us in making
essential improvements to equipment and our
facility to enhance reliability, reach and stability
of the station’s signal, as well as the production
quality of the KSPS studios.”
Environmental
Total 2012 Giving — $37,687*
The Palouse-Clearwater Environmental
Institute (PCEI)’s Nature Center welcomes
over 3,000 visitors annually for environmental
learning opportunities through field trips,
community events, sustainability workshops
and more. With support from the Avista
Foundation the institute purchased and installed
a demonstration net-metered solar panel system
and energy efficient lighting for a new public
restroom facility at the PCEI Nature Center.
“In keeping with our mission, we wanted to
develop a facility that promotes energy efficiency
and environmental protection, as well as add
more teaching tools,” said Thomas C. Lamar,
executive director. “The support we have been
granted from the Avista Foundation will let us
host after-school education programs, allow
visitors to spend more time learning about
the environment and ultimately give us the
opportunity to welcome more visitors to our
nature center.”
Environmental stewardship is a core element
of Avista’s mission and the work that PCEI does
each and every day aligns with that focus.
Partnering on this energy efficiency project
will allow the center to educate more in our
community about the importance of taking
care of our environment and how every little bit
counts when it comes to saving energy.
*The majority of Avista’s support for environmental stewardship
comes through the millions spent each year in meeting the federal
license requirements for our projects on the Clark Fork and Spokane
rivers. See the Environmental Stewardship section of this report for
more information.
63
Low Income And Senior Outreach
Assistance
Families living on limited incomes and seniors
whose fixed incomes have been negatively
affected by the lingering effects of the
downturned economy or medical costs rely on
assistance to maintain essential needs such as
food on the table or gasoline in their vehicles,
access to healthcare or utility services in
their homes.
Avista is committed to reducing the burden of
energy costs for our customers most affected
by rising energy prices, including low income
individuals and families, senior citizens, and
disabled and vulnerable customers. To assist
our customers, we focus on actions and
programs in four primary areas: advocacy for
and support of energy assistance programs
that provide direct financial assistance; low
income and senior outreach programs; energy
efficiency and conservation education; and
support of community programs that increase
customers’ ability to meet the basic costs
of living.
Energy Assistance
In 2001, the Washington Utilities and
Transportation Commission (UTC) approved
Avista’s innovative Low Income Rate
Assistance Program (LIRAP). Through this tariff
surcharge program, customers currently pay
an average $0.67 per month on their electric
bill, with the monies designated for rate
assistance programs in Washington. A similar
program was approved in Oregon in 2002
(where Avista provides only natural gas, not
electricity), currently collecting 0.05 percent
of the total charge per therm on Avista
customers’ bills. LIRAP is not available in
Idaho. In Oregon and Washington, we partner
with community action agencies to distribute
the funds to our vulnerable customers.
Avista also is an active partner in advocating
for and facilitating the distribution of federal
Low Income Heating Assistance Program
(LIHEAP) funds, which are distributed
through our community action agency
partner programs.
Avista is the primary
contributor to the regional
Project Share program that
provides emergency energy
assistance for residential
customers.
Project Share is primarily funded through
contributions from Avista customers, Avista
employees and an annual donation from
Avista Corp. In the 2011-2012 heating season,
Avista helped to raise more than $465,000 to
assist some 2,100 households, housing more
than 6,000 individuals in need.
Energy Efficiency And
Conservation Education
Energy Fairs
Each year our customers ask for help in
managing their energy use and costs
throughout the year, but most particularly
through the cold winter months. During the
fall of 2012, Avista hosted four energy fairs in
select communities in our service area — our
third year for this outreach activity. The fairs
were held in neighborhood community
centers, which are locations that are
recognized as core to a given neighborhood,
and each fair had a focus on serving those in
need, though they were open to the general
public. Approximately 1,900 people attended
the fairs in 2012.
Avista’s energy fairs offer a broad range of
ideas and demonstrations that help residents
keep the warm air inside and the cold air
outside their homes. They’re also a great
way for customers to conveniently access
information about utility payment options,
energy assistance and energy efficiency as
well as valuable community resources,
including home weatherization, safety and
independence resources for seniors, and
employment and financial counseling services.
64
Fair attendees see first-hand how to install
such things as rope caulk, window plastic
and door sweeps. And following each
demonstration, they receive free samples of
each item used in the demonstration.
For the kids, and the young at heart, Wattson,
Avista’s Energy Watchdog, provides fun, energyfocused crafts and presentations of his musical
message of energy efficiency and safety.
At workshops and outreach events, customers
learn about energy efficiency and conservation
topics such as controlling household drafts,
managing the efficient use of major
appliances and home lighting, no-cost tips for
weatherization and information on bill
payment options and resources for assistance.
Free admission to the fair includes all
demonstrations, free samples of energy
efficiency materials, complimentary food
and beverages, and door prizes.
Workshops
Senior citizens on fixed income and low
income families often are struggling to
make tight budgets cover all the household
expenses, including energy.
Avista’s outreach efforts
include workshops specifically
targeted to these vulnerable
groups, which are held in
convenient locations, such as
senior centers and meal sites.
Of the nearly 40 workshops and community
events we staffed in 2012, we interacted with
more than 700 people with information and
resources to help them effectively manage
their energy use.
Energy fairs have proven to be an effective
way to reach our customers who are challenged
with their energy bills. The events, held in
easily accessible community locations, provide
information on energy savings measures, billing
assistance and energy assistance through
personal interactions with our employees and
staff from community resources.
We know these are making a difference
through the feedback we get like this story we
heard following an energy fair in Clarkston,
Washington. Two sisters attending the energy
fair for the first time stopped at a community
agency’s table to ask about services. One was
struggling through a rough life situation and had
no primary heat source in her home. Following
the connection at the energy fair, the woman
went to the agency office, applied for and
received weatherization help for her home.
Her sister was so pleased with how the process
worked and the outcome, she has also applied
for and received weatherization services.
Whether it is offering free CFL bulbs or
information on how to stop drafts in the home
or putting people who are in budget crisis in
touch with agencies that provide services, the
energy fairs are an outreach activity that make
a positive difference for both Avista and the
customers we serve.
65
Lowering The Barriers To Service
Percentage Of Population Unserved In
Service Areas
The opportunity for electric and/or natural gas
service is available by law to all who request it
within the areas Avista serves in Washington,
Idaho and Oregon.
Breaking Through The Language Barrier
Through our Customer Contact Center, Avista
provides a complimentary language line with
quick access to an interpreter 24 hours a day.
It works by way of a three-person conference
call between our non-English speaking
customer, our customer service representative
and an interpreter. We can accommodate
dozens of languages, including Cambodian,
Laotian, Russian, Spanish and Vietnamese.
Part Of The Fabric Of The
Community
When there is a major event in our
communities, it’s a given that Avista is there.
For example, the celebration of Martin Luther
King, Jr. Day in Spokane in January 2012 was
especially meaningful, because the larger than
normal community turnout reinforced the
commitment of citizens to unity and the
celebration of diversity in the face of a
thwarted terror threat to the 2011 march.
Again in January 2013, Avista was out in front
in the parade of nearly 1,000 citizens with
Avista Utilities President Dennis Vermillion
leading a cadre of employees through the
streets of downtown Spokane. Avista was also
a facilitator in rallying support to name a new
major downtown thoroughfare as Martin
Luther King, Jr. Way.
From January through December, Avista
employees are active in events that bring
people together for camaraderie, for fun and
for service to others. As one of the founding
supporters of Hoopfest, the world’s largest
3-on-3 basketball tournament, and
Bloomsday, one of the largest timed road
races in the country, Avista’s employee
volunteers are everywhere — from the score
board to the court, from the set-up to the
cleanup — and they are active participants,
as well.
66
Economic
Vitality
Avista employees help build value for our
communities through their active involvement
in organizations that are growing jobs and
improving the quality of life in our region.
Avista’s leadership encourages employees to
engage in external relationships throughout
the regions we serve.
Hundreds of staff members are
in volunteer leadership roles in
Washington, Idaho, Oregon
and Montana.
These include health and human services
organizations, civic organizations,
environmental and non-governmental groups
(NGOs), economic development organizations,
educational institutions and industry groups.
Engaging With The
Communities We Serve
Avista Entrepreneurial Network
One of the best strategies for pulling out
of the longest, deepest recession of our time
is to enable broad-based innovation and
entrepreneurship. That’s why Avista is partnering
with Spokane Community College (SCC) to
extend their unique entrepreneurship program
to other colleges throughout the region we
serve. The Avista Business Entrepreneurship
Network, in partnership with SCC, will provide
a continuum of education and ongoing support
for budding entrepreneurs in Avista’s service
territory. This network leverages the successful
curriculum established by the Avista Center
for Entrepreneurship at SCC in 2007. To date,
three additional community colleges have
agreed to participate in the network and create
entrepreneurship programs modeled after SCC,
including Rogue Community College (Medford,
Ore.), North Idaho College (Coeur d’Alene,
Idaho), and Walla Walla Community CollegeClarkston (Wash.).
One success story form the SCC program is
Sharmaine Nichole Crosswhite. Sharmaine is
a business owner and employer. Her beauty
and barber salon is gaining business everyday
as a result of the quality services she provides
and the creative marketing techniques she
employs. By her own admission, she isn’t a born
student, and she found traditional business
courses to be difficult and not applicable to
her dream of owning a business. Sharmaine
had an idea for her business and took it to the
Avista Entrepreneurship program at Spokane
Community College, where she found the
coursework, the mentoring and the support she
needed to complete her certificate and create a
foundation for success. Today through dogged
determination, an investment of $5,000 of her
own money and long hours of work, she has
added two employees and her clientele
is growing.
The partnership created by the Avista Business
Entrepreneurship Network will engage more
people, leverage more resources, and accelerate
quicker outcomes for greater impact in business
development and job creation. Much like our
investments to assure reliable energy delivery for
our customers, this network is an investment in
our region’s future prosperity.
67
Uniontown Community Development
The power of community is one of the best
resources for thriving and surviving especially in
many of our rural communities. Working closely
with the Uniontown (Wash.) Community
Development Association (UCDA), Avista
helped local residents in two nearby towns
shape goals and strategies to be reflective of
their values and how they would like to see their
communities prosper. Serving as facilitator at
several community workshops, Avista helped
residents identify and develop a broad base of
support for community improvement projects,
local job creation strategies and a commitment
to work together collaboratively.
Awakening and drawing on local assets,
building on important regional partnerships with
elected officials, business leaders and economic
development organizations, and tapping into a
wellspring of community pride and commitment
to improving their towns has already made a
difference to many community members.
The UCDA is completing renovation of a
local food processing business (Grandma Lea’s
Oatmeal) and space for retail/commercial
businesses along Main Street in Uniontown.
Noting that it is a challenge for small towns
to obtain the resources needed to renovate
vacant buildings and facilitate the start up of
new businesses, assistance from the Avista
Foundation provided critical match funding
for this project.
Leveraging the solid civic foundation that
is now in place, the Uniontown Community
Development Association has received an
“Our Town” grant from the National Endowment
for the Arts for work on “creative place making”
to enhance the identity of Uniontown as a
center of creativity. Uniontown is emerging now
as a rural hub of cultural activity.
Respecting the rich heritage of communities
while helping them recognize opportunities for
growth and prosperity moving forward remains
a priority at Avista and in the communities
we serve.
68
Public Policy
Participation
Public policy has an important role in shaping
the economic environment in which we work
and live. As an energy company, we are
affected by the decisions made by federal,
state and local officials. In turn, these
decisions also affect our customers, employees
and shareholders. It is essential that we have
a voice in the public policy arena and that we
participate in the process for the benefit of all
our stakeholders.
Avista actively participates in local, state
and national legislative and governmental
activities. We work to develop trusting and
credible relationships with elected and
appointed office holders who determine
public policy affecting our company. It is
appropriate and responsible for the company,
through shareholder dollars and the
employee-funded political action committee,
to be supportive of those individuals through
political contributions as one part of a
comprehensive government relations program.
Lobbying And Political Contributions
In 2012 we spent $371,586 on reportable
lobbying expenses at the federal and state
levels to help promote sound energy policy.
In addition, $160,592 of our 2012 federal
trade association dues were used for lobbying.
Avista, using general treasury funds, is legally
prohibited from contributing directly to
political candidates for elected federal offices
and is also prohibited from making such
contributions in certain states. In 2012, we
contributed $171,304 in the states where we
serve customers and where such contributions
are allowed.
Many of our employees are members of the
Avista Employees for Effective Government
Political Action Committee. It is a voluntary,
non-partisan committee for non-craft member
employees. Through this PAC, our employees
contributed $14,270 to state and federal
candidates and political organizations in 2012.
69
Community Partnership — By The Numbers
Philanthropy — Avista Foundation & Avista Corporation
2012
Health & Human
Services
Education
Arts & Culture
Community Vitality
Youth Development
Environmental
$
$
$
$
$
$
Total Giving
$1,626,410
624,966 389,683 129,032 300,650 144,392 37,687 $
$
$
$
$
$
2011
2010
2009
575,967 227,073
178,202 345,593
105,102
42,373
$ 1,431,613 $ 336,737 $ 138,874
$ 218,292
$ 112,803
$
33,322
$
$
$
$
$
$
788,165
275,776
126,817
116,965
106,593
37,460
$ 1,474,310
$ 2,271,641
$1,451,776
Low Income and Senior Outreach — Energy Assistance
Energy Assistance
2011/2012
2010/2011* 2009/20102008/20092007/2008
LIRAP Grants Made **
$ 5.8 million $ 2.7 million
$
4.7 million
$
2.1 million
$
2.8 million
Project Share Grants Made
$
269,380 $
504,389
$
543,000
$
389,000
$
363,859
Avista Contributions To
Project Share
$
215,000 $
215,000
$
400,000
$
215,000
$
200,000
LIHEAP Grants Made***
$ 9.2 million $ 10.8 million
$
9.4 million
$
11.3 million
$
7.1 million
* LIRAP energy assistance program year changed to Oct. 1 to Sept. 30 to align with federal LIHEAP program year
** LIRAP is only available in Washington and Oregon
*** Avista is an active partner in advocating for and facilitating the distribution of federal Low Income Heating Assistance (LIHEAP) funds
70
About
The Report
This fifth voluntary report on our corporate responsibility
provides information about our business practices following
the Global Reporting Initiative (GRI) G3 Guidelines and the
Electric Utility Sector Supplement (EU). This year’s report
continues the work we started in previous reports, with the
shared value perspective woven throughout the content — a
focus on those areas in which we build value for our company
and for our customers, investors, communities and employees.
The report is available online for review as well as for
download in PDF format.
The report is focused solely on Avista Utilities, the regulated
business unit of Avista Corp. There have been no significant
changes in size, structure or ownership of the company since
the last report. Data in the report is current as of Dec. 31,
2012, except where otherwise noted.
71
About The Report
Materiality
The materiality of information included in this
report is determined by the level of
significance each issue has in terms of its:
•Stakeholder interest, as measured by
surveys, focus groups, formal and informal
discussions and anecdotal information;
•Its impact on our business today and in the
future, as determined by state and federal
regulatory and voluntary data reporting, and
financial significance;
•Society’s interest, in terms of its impact on
the communities we serve and its
importance, relevance or perception in part
as reflected by coverage through traditional
and social media channels; and •Materiality check conducted with two
groups — one internal and one external —
that were asked to rate 25 specific topics in
terms of their perceived impact on
stakeholders and their relevance to Avista.
The list of topics is here.
The analysis of all available information
resulted in five material topics which
informed the majority of content for
this report:
Review Of The Report
While this report was not reviewed by outside
stakeholders prior to its publication, we
anticipate sharing it with the stakeholder
groups we regularly interface with throughout
the coming year. In doing so, we hope to
engage individuals and organizations in an
ongoing dialog about our business operations
and solicit suggestions about opportunities to
further build shared value.
Forward-Looking Statement
This report contains forward-looking
statements regarding the company’s current
expectations. Forward-looking statements are
all statements other than historical facts. Such
statements speak only as of the date of the
report and are subject to a variety of risks and
uncertainties, many of which are beyond the
company’s control, which could cause actual
results to differ materially from the
expectations. These risks and uncertainties
include, in addition to those discussed herein,
all of the factors discussed in Avista Corp.’s
Annual Report on Form 10-K for the year
ended Dec. 31, 2012.
This report is available online at
avistautilities.com
For additional information about this report,
or to give us feedback on our performance,
please contact us at:
[email protected]
We welcome your questions and comments.
Acknowledgements
This report is produced through a partnership
of knowledgeable and talented Avista
employees, stakeholders and creative vendors
within our service territory. We thank all of
them for their time, contributions and support.
Editor: Jessie Wuerst
Senior Communications Manager, Avista
Design: Klündt | Hosmer
Cover Photo: Tyler Kracht — Klündt | Hosmer
•System Reliability
•Customer Satisfaction
•Resource Planning
•Environmental Performance
•Corporate Citizenship
72
Global Reporting
Initiative
C+B B+ A A+
Report Externally Assured
We have chosen to align our 2013
Shared Value Report with the Global
Reporting Initiative G3 and Electric
Utility Sector Supplement. The
application Level B has been verified by
GRI, and the statement is available
online. Our complete content index is
also available online.
C
Standard Disclosures
Report
Application Level
*Sector supplement in final version
73
Indicator
Description
Reported
Report Section(s)
Fully
Fully
Fully
Fully
Fully
Our Company — Organizational Profile
Fully
Fully
Fully
Fully
Fully
Fully
About the Report
Fully
Fully
Our Company — Awards & Recognitions 2012
Utility Operations — By the Numbers
Fully
Strategy And Analysis
1.1
1.2
Statement from the most senior decision-maker
of the organization
Description of key impacts, risks, and opportunities
Organizational Profile
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
EU1
EU2
Name of the organization
Primary brands, products, and/or services
Operational structure of the organization, including
main divisions, operating companies, subsidiaries,
and joint ventures
Location of organization's headquarters
Number of countries where the organization operates, and
names of countries with either major operations or that are
specifically relevant to the sustainability issues covered in
the report
Nature of ownership and legal form
Markets served (including geographic breakdown, sectors
served, and types of customers/beneficiaries)
Scale of the reporting organization
Significant changes during the reporting period regarding
size, structure, or ownership
Awards received in the reporting period
Installed capacity, broken down by primary energy source
and by regulatory regime
Net energy output broken down by primary energy source
and by regulatory regime
74
Indicator
Description
Reported
Report Section(s)
EU3
Number of residential, industrial, institutional and
commercial customer accounts
Length of above and underground transmission and
distribution lines by regulatory regime
Allocation of CO2e emissions allowances or equivalent,
broken down by carbon trading framework
Fully
Fully
Fully
Environmental Stewardship — By the Numbers
Fully
About the Report
Fully
Fully
Fully
About the Report
About the Report
About the Report
Fully
Fully
About the Report
About the Report
Fully
About the Report
Fully
About the Report
EU4
EU5
Report Parameters
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
Reporting period (e.g., fiscal/calendar year) for information
provided
Date of most recent previous report (if any)
Reporting cycle (annual, biennial, etc.)
Contact point for questions regarding the report
or its contents
Process for defining report content
Boundary of the report (e.g., countries, divisions,
subsidiaries, leased facilities, joint ventures, suppliers)
State any specific limitations on the scope or boundary
of the report
Basis for reporting on joint ventures, subsidiaries, leased
facilities, outsourced operations, and other entities that can
significantly affect comparability from period to period
and/or between organizations
Data measurement techniques and the bases of
calculations, including assumptions and techniques
underlying estimations applied to the compilation of the
Indicators and other information in the report. Explain any
decisions not to apply, or to substantially diverge from, the
GRI Indicator Protocols.
75
Indicator
Description
3.10
Explanation of the effect of any re-statements of
information provided in earlier reports, and the reasons for
such re-statement (e.g., mergers/acquisitions, change of
base years/periods, nature of business,
measurement methods)
Significant changes from previous reporting periods in the
scope, boundary, or measurement methods applied in the
report
Table identifying the location of the Standard Disclosures in
the report
Policy and current practice with regard to seeking external
assurance for the report
3.11
3.12
3.13
Reported
Report Section(s)
Fully
About the Report
Fully
Fully
About the Report
Fully
Our Company — Governance
Fully
Fully
Fully
Governance, Commitments And Engagements
4.1
4.2
4.3
4.4
Governance structure of the organization, including
committees under the highest governance body
responsible for specific tasks, such as setting strategy or
organizational oversight
Indicate whether the chair of the highest governance body
is also an executive officer
For organizations that have a unitary board structure, state
the number of members of the highest governance body
that are independent and/or
non-executive members
Mechanisms for shareholders and employees to provide
recommendations or direction to the highest
governance body
76
Indicator
Description
Reported
Report Section(s)
4.5
Linkage between compensation for members of the
highest governance body, senior managers, and executives
(including departure arrangements), and the organization's
performance (including social and environmental
performance)
Processes in place for the highest governance body to
ensure conflicts of interest are avoided
Process for determining the qualifications and expertise of
the members of the highest governance body for guiding
the organization's strategy on economic, environmental,
and social topics
Internally developed statements of mission or values, codes
of conduct, and principles relevant to economic,
environmental, and social performance and the status of
their implementation
Procedures of the highest governance body for overseeing
the organization's identification and management of
economic, environmental, and social performance,
including relevant risks and opportunities, and adherence
or compliance with internationally agreed standards, codes
of conduct, and principles
Processes for evaluating the highest governance body's
own performance, particularly with respect to economic,
environmental, and social performance
Explanation of whether and how the precautionary
approach or principle is addressed by the organization
Externally developed economic, environmental, and social
charters, principles, or other initiatives to which the
organization subscribes or endorses
Fully
Fully
Fully
Fully
Fully
Fully
Fully
2012 Annual Report Form 10-K, Item 7-A
Fully
Community Partnership — Economic Vitality
4.6
4.7
4.8
4.9
4.10
4.11
4.12
77
Indicator
Description
Reported
Report Section(s)
4.13
Memberships in associations (such as industry associations)
and/or national/international advocacy organizations in
which the organization: Has positions in governance
bodies; Participates in projects or committees; Provides
substantive funding beyond routine membership dues; or
Views membership as strategic
List of stakeholder groups engaged by the organization
Basis for identification and selection of stakeholders with
whom to engage
Approaches to stakeholder engagement, including
frequency of engagement by type and by
stakeholder group
Key topics and concerns that have been raised through
stakeholder engagement, and how the organization has
responded to those key topics and concerns, including
through its reporting
Fully
Fully
Fully
Utility Operations — Engaging Our Stakeholders
Fully
Fully
About the Report
Fully
Fully
Fully
Avista Corp. 2012 Annual Report
Fully
Utility Operations — Resource and
Business Continuity Planning
Fully
Utility Operations — Energy Efficiency and
Conservation Programs
Fully
Utility Operations — Smart Grid Initiatives
4.14
4.15
4.16
4.17
Disclosure On Management Approach EC
Aspects
EU6
EU7
EU7
Economic performance
Market presence
Indirect economic impacts
Availability and reliability
Management approach to ensure short and long-term
electricity availability and reliability
Demand-side management
Demand-side management programs including residential,
commercial, institutional and
industrial programs
System efficiency
Research and development
78
Indicator
Description
Reported
Report Section(s)
EU8
Research and development activity and expenditure aimed
at providing reliable electricity and promoting sustainable
development
Plant decommissioning
Provisions for decommissioning of nuclear power sites
Fully
Utility Operations — Smart Grid Initiatives
EU9
No Nuclear Power
Disclosure On Management Approach EN
Aspects
Materials
Fully
Environmental Stewardship; Environmental Policy
Energy
Fully
Water
Fully
Biodiversity
Fully
Emissions, effluents and waste
Fully
Products and services
Fully
Compliance
Fully
Transport
Fully
Utility Operations — Energy Efficiency
and Conservation Programs
Environmental Stewardship —
Stewardship of the Waterways
Climate and Environmental Impacts
Overall
79
Indicator
Description
Reported
Report Section(s)
Fully
Our Company — Our Employees
Fully
Fully
Fully
Fully
Fully
Fully
Our Company — Our Commitment to Diversity
Fully
Fully
Fully
Utility Operations — Supply Chain
Partially
Environmental Stewardship — Stewardship
of the Waterways
Fully
About the Report
Disclosure On Management Approach LA
Aspects
EU14
EU15
EU16
Employment
Programs and processes to ensure the availability of a
skilled workforce
Percentage of employees eligible to retire in the next 5 and
10 years broken down by job category and by region
Policies and requirements regarding health and safety
of employees and employees of contractors
and subcontractors
Labor/management relations
Occupational health and safety
Training and education
Diversity and equal opportunity
Disclosure On Management Approach HR
Aspects
Investment and procurement practices
Non-discrimination
Freedom of association and collective bargaining
Child labor
Forced and compulsory labor
Security practices
Indigenous rights
Disclosure On Management Approach SO
Aspects
Community
EU19
Stakeholder participation in the decision making
process related to energy planning and
infrastructure development
80
Indicator
Description
Reported
Report Section(s)
EU20
Approach to managing the impacts of displacement
Corruption
Public policy
Anti-competitive behavior
Compliance
Disaster/Emergency planning and response
Fully
Fully
Fully
Fully
Fully
Community Partnership — Public Policy Participation
Code of Business Conduct
Code of Business Conduct
Utility Operations — Planning to Ensure
Continuation of Services
EU21
Contingency planning measures, disaster/emergency
management plan and training programs, and recovery/
restoration plans
Fully
Disclosure On Management Approach PR
Aspects
EU23
EU24
Customer health and safety
Product and service labelling
Marketing communications
Customer privacy
Compliance
Access
Programs, including those in partnership with government,
to improve or maintain access to electricity and customer
support services
Provision of information
Practices to address language, cultural, low literacy and
disability related barriers to accessing and safely using
electricity and customer support services
Fully
Fully
Fully
Fully
Utility Operations — Serving Our Customers — Electricity
Avista Utilities Website
Fully
Community Partnership — Low Income and
Senior Outreach Assistance
Fully
Community Partnership — Low Income and
Senior Outreach Assistance
81
Indicator
Description
Reported
Report Section(s)
Fully
Our Company — Organizational Profile;
Community Partnership — Philanthropy
Fully
Fully
Environmental Stewardship — Climate
and Environmental Impacts
Fully
Utility Operations — Supply Chain
Fully
Fully
Economic
Economic Performance
EC1
EC2
EC3
EC4
Direct economic value generated and distributed, including
revenues, operating costs, employee compensation,
donations and other community investments, retained
earnings, and payments to capital providers and
governments
Financial implications and other risks and opportunities for
the organization's activities due to climate change
Coverage of the organization's defined benefit
plan obligations
Significant financial assistance received
from government
Market Presence
EC5
EC6
EC7
Range of ratios of standard entry level wage compared to
local minimum wage at significant locations
of operation
Policy, practices, and proportion of spending on locallybased suppliers at significant locations of operation
Procedures for local hiring and proportion of senior
management hired from the local community at significant
locations of operation
Indirect Economic Impacts
EC8
EC9
Development and impact of infrastructure investments and
services provided primarily for public benefit through
commercial, in-kind, or pro bono engagement
Understanding and describing significant indirect economic
impacts, including the extent of impacts
82
Indicator
Description
Reported
Report Section(s)
Fully
Fully
Materials used by weight or volume
Percentage of materials used that are recycled
input materials
Fully
Fully
Environmental Stewardship — Climate and
Environmental Impacts
Direct energy consumption by primary energy source
Indirect energy consumption by primary source
Energy saved due to conservation and
efficiency improvements
Initiatives to provide energy-efficient or renewable energy
based products and services, and reductions in energy
requirements as a result of these initiatives
Initiatives to reduce indirect energy consumption and
reductions achieved
Fully
Fully
Availability and Reliability
EU10
Planned capacity against projected electricity demand over
the long term, broken down by energy source and
regulatory regime
System Efficiency
EU11
EU12
Average generation efficiency of thermal plants by energy
source and regulatory regime
Transmission and distribution losses as a percentage of
total energy
Environmental
Materials
EN1
EN2
Energy
EN3
EN4
EN5
EN6
EN7
Fully
Water
EN8
EN9
Total water withdrawal by source
Water sources significantly affected by withdrawal
of water
83
Indicator
Description
Reported
Report Section(s)
EN10
Percentage and total volume of water recycled
and reused
Location and size of land owned, leased, managed in,
or adjacent to, protected areas and areas of high
biodiversity value outside protected areas
Description of significant impacts of activities, products,
and services on biodiversity in protected areas and areas of
high biodiversity value outside protected areas
Biodiversity of offset habitats compared to the biodiversity
of the affected areas
Habitats protected or restored
Fully
Fully
Fully
Strategies, current actions, and future plans for managing
impacts on biodiversity
Number of IUCN Red List species and national conservation
list species with habitats in areas affected by operations, by
level of extinction risk
Fully
Biodiversity
EN11
EN12
EU13
EN13
EN14
EN15
Emissions, Effluents and Waste
EN16
EN17
EN18
EN19
Total direct and indirect greenhouse gas emissions
by weight
Other relevant indirect greenhouse gas emissions
by weight
Initiatives to reduce greenhouse gas emissions and
reductions achieved
Emissions of ozone-depleting substances by weight
Fully
Fully
Fully
84
Indicator
Description
Reported
Report Section(s)
EN20
NOx, SOx, and other significant air emissions by type and
weight
Total water discharge by quality and destination
Total weight of waste by type and disposal method
Total number and volume of significant spills
Weight of transported, imported, exported, or treated
waste deemed hazardous under the terms of the Basel
Convention Annex I, II, III, and VIII, and percentage of
transported waste shipped internationally
Identity, size, protected status, and biodiversity value of
water bodies and related habitats significantly affected
by the reporting organization's discharges of water
and runoff
Fully
Fully
Initiatives to mitigate environmental impacts of products
and services, and extent of impact mitigation
Percentage of products sold and their packaging materials
that are reclaimed by category
Fully
Monetary value of significant fines and total number
of non-monetary sanctions for non-compliance with
environmental laws and regulations
Fully
Environmental Fines and Sanctions
Significant environmental impacts of transporting products
and other goods and materials used for the organization's
operations, and transporting members of the workforce
Fully
EN21
EN22
EN23
EN24
EN25
Products and Services
EN26
EN27
Compliance
EN28
Transport
EN29
85
Indicator
Description
Reported
Report Section(s)
Total environmental protection expenditures
and investments by type
Fully
Fully
Fully
Overall
EN30
Social: Labor Practices And Decent Work
Employment
LA1
LA2
EU17
EU18
LA3
Total workforce by employment type, employment
contract, and region
Total number and rate of employee turnover by age group,
gender, and region
Days worked by contractor and subcontractor
employees involved in construction, operation and
maintenance activities
Percentage of contractor and subcontractor employees
that have undergone relevant health and safety training
Benefits provided to full-time employees that are not
provided to temporary or part-time employees, by
major operations
Labor/Management Relations
LA4
LA5
Percentage of employees covered by collective bargaining
agreements
Minimum notice period(s) regarding significant operational
changes, including whether it is specified in collective
agreements
86
Indicator
Description
Reported
Report Section(s)
Fully
Fully
Our Company — By the Numbers
Fully
Fully
Partially
Fully
Fully
Fully
Occupational Health and Safety
LA6
LA7
LA8
LA9
Percentage of total workforce represented in formal joint
management-worker health and safety committees that
help monitor and advise on occupational health and safety
programs
Rates of injury, occupational diseases, lost days,
and absenteeism, and number of work-related
fatalities by region
Education, training, counseling, prevention, and
risk-control programs in place to assist workforce
members, their families, or community members regarding
serious diseases
Health and safety topics covered in formal agreements
with trade unions
Training and Education
LA10
LA11
LA12
Average hours of training per year per employee by
employee category
Programs for skills management and lifelong learning that
support the continued employability of employees and
assist them in managing career endings
Percentage of employees receiving regular performance
and career development reviews
Diversity and Equal Opportunity
LA13
LA14
Composition of governance bodies and breakdown
of employees per category according to gender,
age group, minority group membership, and other
indicators of diversity
Ratio of basic salary of men to women
by employee category
87
Indicator
Description
Reported
Report Section(s)
Social: Human Rights
Investment and Procurement Action
HR1
HR2
HR3
Percentage and total number of significant investment
agreements that include human rights clauses or that have
undergone human rights screening
Percentage of significant suppliers and contractors
that have undergone screening on human rights
and actions taken
Total hours of employee training on policies and
procedures concerning aspects of human rights that
are relevant to operations, including the percentage
of employees trained
Non-Discrimination
HR4
Total number of incidents of discrimination and
actions taken
Freedom of Association and Collective Bargaining
HR5
Operations identified in which the right to exercise
freedom of association and collective bargaining may
be at significant risk, and actions taken to support
these rights
Child Labor
HR6
Operations identified as having significant risk for incidents
of child labor, and measures taken to contribute to the
elimination of child labor
88
Indicator
Description
Reported
Report Section(s)
Fully
Forced and Compulsory Labor
HR7
Operations identified as having significant risk for incidents
of forced or compulsory labor, and measures to contribute
to the elimination of forced or compulsory labor
Security Practices
HR8
Percentage of security personnel trained in the
organization's policies or procedures concerning aspects of
human rights that are relevant to operations
Indigenous Rights
HR9
Total number of incidents of violations involving rights of
indigenous people and actions taken
Social: Society
Community
SO1
EU22
Nature, scope, and effectiveness of any programs
and practices that assess and manage the impacts
of operations on communities, including entering,
operating, and exiting
Number of people physically or economically displaced and
compensation, broken down by type of project
None has occurred
Corruption
SO2
SO3
SO4
Percentage and total number of business units analyzed for
risks related to corruption
Percentage of employees trained in organization's
anti-corruption policies and procedures
Actions taken in response to incidents of corruption
Fully
All employees and new hires receive a copy of the Code of
Ethics, which is periodically reviewed and updated.
Fully
Public Policy
SO5
Public policy positions and participation in public
policy development and lobbying
89
Indicator
Description
Reported
Report Section(s)
SO6
Total value of financial and in-kind contributions to political
parties, politicians, and related institutions
by country
Fully
Anti-Competitive Behavior
SO7
Total number of legal actions for anti-competitive behavior,
anti-trust, and monopoly practices and
their outcomes
Compliance
SO8
Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws and
regulations
Social: Product Responsibility
Customer Health and Safety
PR1
PR2
EU25
Life cycle stages in which health and safety impacts of
products and services are assessed for improvement, and
percentage of significant products and services categories
subject to such procedures
Total number of incidents of non-compliance with
regulations and voluntary codes concerning health and
safety impacts of products and services during their life
cycle, by type of outcomes
Number of injuries and fatalities to the public involving
company assets, including legal judgments, settlements
and pending legal cases of diseases
Product and Service Labeling
PR3
Type of product and service information required by
procedures, and percentage of significant products and
services subject to such information requirements
90
Indicator
Description
PR4
regulations and voluntary codes concerning product and
service information and labeling, by type of outcomes
Practices related to customer satisfaction, including results
of surveys measuring customer satisfaction
Programs for adherence to laws, standards, and voluntary
codes related to marketing communications, including
advertising, promotion, and sponsorship
PR5
PR6
Reported
Report Section(s)
Fully
Utility Operations — Customer Service
Marketing Communications
PR7
regulations and voluntary codes concerning marketing
communications, including advertising, promotion, and
sponsorship by type of outcomes
None
Customer Privacy
PR8
Total number of substantiated complaints regarding
breaches of customer privacy and losses of
customer data
Compliance
PR9
Monetary value of significant fines for non-compliance
with laws and regulations concerning the provision and use
of products and services
None
Percentage of population unserved in licensed distribution
or service areas
Number of residential disconnections for non-payment,
broken down by duration of disconnection and by
regulatory regime
Power outage frequency
Fully
Community Partnership — Low Income
and Senior Outreach Assistance
Fully
Access
EU26
EU27
EU28
91
Indicator
Description
Reported
Report Section(s)
EU29
Average power outage duration
Average plant availability factor by energy source and by
regulatory regime
Fully
Fully
EU30
92

Shared Value — Shared Success

Transcription

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