20080609AVU to Staff 5.pdf

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Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
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June 6, 2008
Idaho Public Utilities Commission
472 W. Washington St.
Boise, il 83720-0074
Attn: Scott Woodbur
Deputy Attorney General
Re: Production Request of the Commission Staff in Case Nos. A VU-E-08-01 and
A VU-G-08-01
Dear Mr. Woodbury,
Enclosed is an original and three copies of Avista's response to IPUC Staffs production
requests in the above referenced docket. Included in this mailing is Avista's response to
production request 005. The electronic version of this response was emailed on 6/05/08 and is
also being provided in electronic format on the CDs included in this mailing.
If there are any questions regarding the enclosed information, please contact me at (509) 495-
8620 or via e-mail atpat.ehrbar~avistacorp.com
Sincerely,Q~~
Patrck Ehrbar
Regulatory Analyst
Enclosures
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AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
A VU-E-08-01 / A VU-G-08-01
IPUC
Production Request
Staff-005
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
REQUEST:
06/0612008
Malyn Malquist
Paul Kimball
Finance
[phone]
Please provide any or all underwriting documentation, including competitive bids from investment bans
or broker-dealers associated with any or all Company debt or equity issuances occurrng during 2003
through 2008.
RESPONSE:
Due to the voluminous or electronic nature of the attachments, they are being provided in electronic
format only.
Please see the following attachments:
. 2003 - First Mortgage Bonds, 6.125% Series due 2013, attached Underiting Agreement
(see StafCPR _ 005-Attachment-A.pdf).
. 2004 A V A Capital Trust ill, attached Underwriting Agreement (see
StafCPR _ 005-Attachment-B.pdf).
. 2004 - First Mortgage Bonds, 5.45% Seres due 2019, attached Underwting Agreement (see
Staff_PR _ 005-Attachment-C.pdf).
. 2005 - First Mortgage Bonds, 6.25% Series due 2035, attached Underwting Agreement (see
StafCPR _ 005-Attachment-D.pdf).
. 2006 - First Mortgage Bonds, 5.70% Series due 2037, attached Underwting Agreement (see
StafCPR_ 005-Attachment-E.pdf).
. 2006 - 2,750,000 Shares of Common Stock, attached Underwriting Agreement (see
StafCPR _ 005-Attachment-F.pdf).
. 2006 - 2,000,000 Shares of Common Stock, attached Sales Agency Agreement (see
StafCPR _ 005-Attachment-G.pdf).
. 2008 - First Mortgage Bonds, 5.95% Series due 2018, attached Underwriting Agreement (see
StafCPR _ 005-Attachment-H.pdf).
For debt issuances, commissions are set on a fixed percentage basis. Underwters have used this .
system of commission for years. The fee that the underwriter receives is determined by the matuty
of the notes.
Commission (Percentage of Aggregate Principal
Amount of Notes Sold)
.125%
.150%
.200%
Commissions to Notes Agents
Range of Maturities
From 9 months to less than 1 year
From 1 year to less than 18 months
From 18 months to less than 2 years
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From 2 years to less than 3 years
From 3 years to less than 4 years
From 4 years to less than 5 years
From 5 years to less than 6 years
From 6 years to less than 7 years
From 7 years to less than 10 years
From 10 years to less than 15 years
From 15 years to less than 20 years
From 20 years to less than 30 years
.250%
.350%
.450%
.500%
.550%
.600%
.625%
.700%
.750%
For equity issuances, the Company does go through a competitive bid process that includes fees along
with many other factors to determine the underwriter for each transaction. Underwriter fees are one of
the biggest considerations, but also their timing and capabilities. For the 2,000,000 shares of common
stock offerng, please see Staff_PR_005-Attachment-I.xls which contains the Agent Selection Analysis
the Company pedormed. For the 2,750,000 common stock offering, while no formal analysis was
completed, the Company had a unique opportnity presented by UBS Securities to issue shares in a short
period of time at a fee in the 2% range versus the normal 4-5% range normally seen in the market.