20160923AVU to Clearwater 3 Supplemental.doc

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 09/22/2016
CASE NO: AVU-E-16-03 WITNESS: Mark Thies
REQUESTER: Clearwater Paper RESPONDER: Lauren Pendergraft
TYPE: Production Request DEPARTMENT: Finance
REQUEST NO.: Clearwater – 03 Supplemental TELEPHONE: [phone]

REQUEST:

Please provide for the past 10 years (2007 through 2015, at the end of the fiscal year) for each year the following as it relates to the Company's rate of return and capital structure;
The actual percentage of equity,
The actual percentage of debt,
The Commission authorized cost of equity approved by the,
Washington Utilities and Transpiration Commission,
Idaho Public Utilities Commission,
The actual cost of debt,
Long-term,
Short-term,
Weighted Long and Short Term debt,
The overall rate of return approved by the,
Washington Utilities and Transpiration Commission,
Idaho Public Utilities Commission.

RESPONSE:

a. - e.
Please see Clearwater_PR_03-Attachment A.

SUPPLEMENTAL (09/22/2016):
Included as Clearwater_PR_03-Supplemental Attachment A are workpapers to reflect a revised Cost of Debt of 5.76%. In August Avista priced $175,000,000 First Mortgage Bonds due in 2051 (35 years), through a private placement offering with the bonds to be funded and issued in December 2016, at a coupon of 3.54%. Including the cost of hedges, the all in rate is approximately 5.634% over the 35-year period. This change updates the overall cost of debt from 5.67% to 5.76%. This also revises the Company's Rate of Return (ROR) from 7.78% to 7.83%. This update adds approximately $0.4 million to the overall revenue requirement proposed in this case.

First Production Request of the Clearwater Paper Corporation AVE-E-16-03
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