20230804AVU to Staff 1 Attachment A.pdf

DEPARTMENT OF NATURAL RESOURCES
AND CONSERVATION
GREG GIANFORTE, GOVERNOR 1539 ELEVENTH AVENUE
STATE OF MONTANA
DIRECTOR'S OFFICE: [phone] PO BOX 201601
FAX: [phone] HELENA, MONTANA 59620-1601
Sent Via Email Only
May 4, 2023
Kathryn S. Mahe
Garlington Lohn & Robinson PLLP
350 Ryman St
Missoula MT 59807-7909
[e-mail]
RE: State v. Avista, Cause No. ADV-2004-84
Ms. Mahe:
I apologize for my delayed follow-up regarding release of Avista’s 2017 - 2021 rent from escrow. The
Department would like to finalize the details for release of those funds now that the 68th legislative
session has concluded.
Paragraph 7 of the escrow agreement provides: “Avista affirms that at the end of the Escrow period, it
owes applicable lease amount as agreed by the parties, as well as added interest reflecting the rate of
return of the unified investment program administered by the Montana Board of Investments pursuant to
Montana Code Annotated § 17-6-201 on an annualized basis. Should the Escrow account contain
insufficient funds to fund applicable lease and interest amounts, Avista will pay the State directly the
difference within 30 days of the Escrow disbursement.”
As of February 28, 2023, the balance of funds held in the escrow account is $24,522,420.49. The
Department calculated the “added interest reflecting the rate of return of the unified investment program
administered by the Montana Board of Investments pursuant to Montana Code Annotated § 17-6-201 on
an annualized basis” for the rental payments held in escrow for the relevant period.
FY Rate of
Return
Investment Date Investment/Rental
Amount
Balance plus the unified
investment program annualized
rate of return
2017 3.58% 3/31/2017 $4,681,600.00 $4,681,600.00
2018 3.42% 2/28/2018 $4,798,800.00 $9,643,319.68
2019 3.58% 2/28/2019 $4,898,000.00 $14,884,621.86
2020 3.35% 2/29/2020 $4,974,000.00 $20,367,675.93
Staff_PR_001 Attachment A Page 1 of 2
2021 3.20% 2/28/2021 $5,098,000.00 $26,147,993.07
2022 4.65% $27,031,795.241
2023 $28,288,773.722
As of February 28, 2023, the annual rent and added interest is $28,288,773.72. Based on these
calculations, in addition to release of the escrow funds, Avista is required to pay the State $3,766,353.23
within thirty days of disbursement of the escrow funds.
The Department would like to afford Avista this opportunity to evaluate and confirm the Department’s
calculations prior to disbursement of the escrow funds and triggering the timeline for payment of the
$3,766,353.23 owed by Avista. Feel free to call with any questions.
Best regards,
_______________________
Brian C. Bramblett
Cc: via email only
William Schroeder
Shawn Thomas
1 2/28/2022 value.
2 2/28/2023 value using FY22 rate of return.
Staff_PR_001 Attachment A Page 2 of 2