20200501Ferc Form 2 Final 2019.pdf

FERC FINANCIAL REPORT
FERC FORM No. 2: Annual Report of
Major Natural Gas Companies and
Supplemental Form 3-Q: Quarterly
Financial Report
THIS FILING IS
Item 1: An Initial (Original)
Submission
OR Resubmission No. ____X
These reports are mandatory under the Natural Gas Act, Sections 10(a), and 16 and 18
CFR Parts 260.1 and 260.300. Failure to report may result in criminal fines, civil
penalties, and other sanctions as provided by law. The Federal Energy Regulatory
Commission does not consider these reports to be of a confidential nature.
Form 2 Approved
OMB No.1902-0028
(Expires 12/31/2020)
OMB No.1902-0205
(Expires 11/30/2022)
Form 3-Q Approved
FERC FORM No. 2/3Q (02-04)
Exact Legal Name of Respondent (Company)
Avista Corporation
Year/Period of Report
End of 2019/Q4
AVU-G
RECEIVED
2020 April 29,PM4:26
IDAHO PUBLIC
UTILITIES COMMISSION
QUARTERLY/ANNUAL REPORT OF MAJOR NATURAL GAS COMPANIES
1411 East Mission Avenue Spokane, WA 99207
04/15/2020Ryan L. Krasselt
VP, Controller, Prin. Acctg OfficerRyan L. Krasselt
04/15/2020
1411 East Mission Avenue Spokane, WA 99207
VP, Controller, Prin. Acctg OfficerRyan L. Krasselt
This Report Is:
(1) An Original
(2) A Resubmission
Year/Period of Report
End ofAvista Corporation
X
2019/Q4
01 Exact Legal Name of Respondent
IDENTIFICATION
03 Previous Name and Date of Change (If name changed during year)
04 Address of Principal Office at End of Year (Street, City, State, Zip Code)
05 Name of Contact Person 06 Title of Contact Person
07 Address of Contact Person (Street, City, State, Zip Code)
509-495-2273
08 Telephone of Contact Person, Including Area Code 10 Date of Report
(Mo, Da, Yr)
11 Name 12 Title
13 Signature 14 Date Signed
Title 18, U.S.C. 1001, makes it a crime for any person knowingly and willingly to make to any Agency or Department of the United States any
false, fictitious or fraudulent statements as to any matter within its jurisdiction.
ANNUAL CORPORATE OFFICER CERTIFICATION
The undersigned officer certifies that:
I have examined this report and to the best of my knowledge, information, and belief all statements of fact contained in this report are correct statements
of the business affairs of the respondent and the financial statements, and other financial information contained in this report, conform in all material
respects to the Uniform System of Accounts.
Page 1FERC FORM NO. 2/3Q (02-04)
List of Schedules (Natural Gas Company)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Title of Schedule
(a)
Enter in column (d) the terms "none," "not applicable," or "NA" as appropriate, where no information or amounts have been reported for
certain pages. Omit pages where the responses are "none," "not applicable," or "NA."
Reference
Page No.
(b)
Date Revised
(c)
Remarks
(d)
GENERAL CORPORATE INFORMATION AND FINANCIAL STATEMENTS
101General Information 1
N/A102Control Over Respondent 2
103Corporations Controlled by Respondent 3
107Security Holders and Voting Powers 4
108Important Changes During the Year 5
110-113Comparative Balance Sheet 6
114-116Statement of Income for the Year 7
117Statement of Accumulated Comprehensive Income and Hedging Activities 8
118-119Statement of Retained Earnings for the Year 9
120-121Statements of Cash Flows 10
122Notes to Financial Statements 11
BALANCE SHEET SUPPORTING SCHEDULES (Assets and Other Debits)
200-201Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization, and Depletion 12
204-209Gas Plant in Service 13
N/A212Gas Property and Capacity Leased from Others 14
N/A213Gas Property and Capacity Leased to Others 15
214Gas Plant Held for Future Use 16
216Construction Work in Progress-Gas 17
N/A217Non-Traditional Rate Treatment Afforded New Projects 18
218General Description of Construction Overhead Procedure 19
219Accumulated Provision for Depreciation of Gas Utility Plant 20
220Gas Stored 21
222-223Investments 22
224-225Investments in Subsidiary Companies 23
230Prepayments 24
N/A230Extraordinary Property Losses 25
N/A230Unrecovered Plant and Regulatory Study Costs 26
232Other Regulatory Assets 27
233Miscellaneous Deferred Debits 28
234-235Accumulated Deferred Income Taxes 29
BALANCE SHEET SUPPORTING SCHEDULES (Liabilities and Other Credits)
250-251Capital Stock 30
N/A252
Capital Stock Subscribed, Capital Stock Liability for Conversion, Premium on Capital Stock, and
Installments Received on Capital Stock
31
253Other Paid-in Capital 32
N/A254Discount on Capital Stock 33
254Capital Stock Expense 34
255Securities issued or Assumed and Securities Refunded or Retired During the Year 35
256-257Long-Term Debt 36
258-259Unamortized Debt Expense, Premium, and Discount on Long-Term Debt 37
Page 2FERC FORM NO. 2 (REV 12-07)
List of Schedules (Natural Gas Company) (continued)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Title of Schedule
(a)
Enter in column (d) the terms "none," "not applicable," or "NA" as appropriate, where no information or amounts have been reported for
certain pages. Omit pages where the responses are "none," "not applicable," or "NA."
Reference
Page No.
(b)
Date Revised
(c)
Remarks
(d)
260Unamortized Loss and Gain on Reacquired Debt 38
261Reconciliation of Reported Net Income with Taxable Income for Federal Income Taxes 39
262-263Taxes Accrued, Prepaid, and Charged During Year 40
268Miscellaneous Current and Accrued Liabilities 41
269Other Deferred Credits 42
274-275Accumulated Deferred Income Taxes-Other Property 43
276-277Accumulated Deferred Income Taxes-Other 44
278Other Regulatory Liabilities 45
INCOME ACCOUNT SUPPORTING SCHEDULES
N/A299Monthly Quantity & Revenue Data by Rate Schedule 46
300-301Gas Operating Revenues 47
N/A302-303Revenues from Transportation of Gas of Others Through Gathering Facilities 48
N/A304-305Revenues from Transportation of Gas of Others Through Transmission Facilities 49
N/A306-307Revenues from Storage Gas of Others 50
308Other Gas Revenues 51
N/A313Discounted Rate Services and Negotiated Rate Services 52
317-325Gas Operation and Maintenance Expenses 53
N/A328Exchange and Imbalance Transactions 54
331Gas Used in Utility Operations 55
N/A332Transmission and Compression of Gas by Others 56
334Other Gas Supply Expenses 57
335Miscellaneous General Expenses-Gas 58
336-338Depreciation, Depletion, and Amortization of Gas Plant 59
340Particulars Concerning Certain Income Deduction and Interest Charges Accounts 60
COMMON SECTION
350-351Regulatory Commission Expenses 61
352Employee Pensions and Benefits (Account 926) 62
354-355Distribution of Salaries and Wages 63
357Charges for Outside Professional and Other Consultative Services 64
358Transactions with Associated (Affiliated) Companies 65
GAS PLANT STATISTICAL DATA
N/A508-509Compressor Stations 66
512-513Gas Storage Projects 67
N/A514Transmission Lines 68
N/A518Transmission System Peak Deliveries 69
519Auxiliary Peaking Facilities 70
520Gas Account-Natural Gas 71
N/A521Shipper Supplied Gas for the Current Quarter 72
N/A522System Map 73
N/A551Footnote Reference 74
552Footnote Text 75
Stockholder's Reports (check appropriate box) 76
Four copies will be submitted
No annual report to stockholders is prepared
X
Page 3FERC FORM NO. 2 (REV 12-07)
General Information
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Ryan Krasselt, Vice President and Controller, Principal Accounting Officer
1411 East Mission Avenue
Spokane, WA 99207
Electric service in the states of Washington, Idaho and Montana
Natural gas service in the states of Washington, Idaho and Oregon
Not Applicable
(1)
(2)
State of Washington, Incorporated March 15,1889
1. Provide name and title of officer having custody of the general corporate books of account and address of office where the general corporate books are kept and address of office
where any other corporate books of account are kept, if different from that where the general corporate books are kept.
2. Provide the name of the State under the laws of which respondent is incorporated and date of incorporation. If incorporated under a special law, give reference to such law. If not
incorporated, state that fact and give the type of organization and the date organized.
3. If at any time during the year the property of respondent was held by a receiver or trustee, give (a) name of receiver or trustee, (b) date such receiver or trustee took possession, (c)
the authority by which the receivership or trusteeship was created, and (d) date when possession by receiver or trustee ceased.
4. State the classes of utility and other services furnished by respondent during the year in each State in which the respondent operated.
Yes... Enter the date when such independent accountant was initially engaged:
NoX
5. Have you engaged as the principal accountant to audit your financial statements an accountant who is not the principal accountant for your previous year's certified financial
statements?
Page 101FERC FORM NO. 2 (12-96)

This Page Intentionally Left Blank
Corporations Controlled by Respondent
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Name of Company Controlled
(a)
Type of Control
(b)
Kind of Business
(c)
1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by respondent
at any time during the year. If control ceased prior to end of year, give particulars (details) in a footnote.
2. If control was by other means than a direct holding of voting rights, state in a footnote the manner in which control was held, naming
any intermediaries involved.
3. If control was held jointly with one or more other interests, state the fact in a footnote and name the other interests.
4. In column (b) designate type of control of the respondent as "D" for direct, an "I" for indirect, or a "J" for joint control.
---------------------------
DEFINITIONS
---------------------------
1. See the Uniform System of Accounts for a definition of control.
2. Direct control is that which is exercised without interposition of an intermediary.
3. Indirect control is that which is exercised by the interposition of an intermediary that exercises direct control.
4. Joint control is that in which neither interest can effectively control or direct action without the consent of the other, as where the
voting control is equally divided between two holders, or each party holds a veto power over the other. Joint control may exist by mutual
agreement or understanding between two or more parties who together have control within the meaning of the definition of control in the
Uniform System of Accounts, regardless of the relative voting rights of each party.
Percent Voting
Stock Owned
(d)
Footnote
Reference
(e)
Avista Capital Parent to the Company's subsidiaries Not used 100D 1
Avista Development Investment in Real Estate Not used 100I 2
Pentzer Corporation Parent of Bay Area Mfg and Penture
Venture Holdngs
Not used 100I 3
Pentzer Venture Holdings II Holding Company-Inactive Not used 100I 4
Bay Area Manufacturing Holding Company Not used 100I 5
Avista Capital II Affiliated business trust issued pref
trust Securi
Not used 100D 6
Avista Northwest Resources, LLC Owns an interest in a venture fund
investment
Not used 100I 7
Steam Plant Square, LLC Commerical office and Retail leasing Not used 100I 8
Courtyard Office Center, LLC Commerical office and Retail leasing Not used 100I 9
Steam Plant Brew Pub, LLC Restaurant Operations Not used 100I 10
Salix, Inc.Liquified Natural Gas Operations Not used 100I 11
Alaska Energy and Resources Company Parent company of Alaska operations Not used 100D 12
Alaska Electric Light and Power Company Utility operations in Juneau Not used 100I 13
AJT Mining Properties, Inc Inactive mining Company holding
Certain Properties
Not used 100I 14
Snettisham Electric Company Right to Purchase Snetti Not used 100I 15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Page 103FERC FORM NO. 2 (12-96)
Schedule Page: 103 Line No.: 1 Column: d
Parent company
Schedule Page: 103 Line No.: 2 Column: d
Maintains investment portfolio including real estate.
Schedule Page: 103 Line No.: 3 Column: d
Subsidiary of Avista Capital
Schedule Page: 103 Line No.: 4 Column: d
Subsidiary of Pentzer Corporation
Schedule Page: 103 Line No.: 5 Column: d
Subsidiary of Pentzer Corporation
Schedule Page: 103 Line No.: 6 Column: d
Affiliate of Avista Corporation
Schedule Page: 103 Line No.: 7 Column: d
Subsidiary of Avista Capital
Schedule Page: 103 Line No.: 8 Column: d
Subsidiary of Avista Development
Schedule Page: 103 Line No.: 9 Column: d
Subsidiary of Avista Development
Schedule Page: 103 Line No.: 10 Column: d
Subsidiary of Steam Plant Square, LLC
Schedule Page: 103 Line No.: 11 Column: d
Subsidiary of Avista Capital
Schedule Page: 103 Line No.: 12 Column: d
Subsidiary of Avista Corporation
Schedule Page: 103 Line No.: 13 Column: d
Subsidiary of AERC
Schedule Page: 103 Line No.: 14 Column: d
Subsidiary of AERC
Schedule Page: 103 Line No.: 15 Column: d
Subsidiary of AERC
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2)A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
FOOTNOTE DATA
FERC FORM NO. 2 (12-96)Page 552.1
54964821
12/31/2019
5/9/2019
54964821
11/27/2019
Other
(e)
Security Holders and Voting Powers
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Name (Title) and Address of
Security Holder
(a)
Total Votes
(b)
1. Give the names and addresses of the 10 security holders of the respondent who, at the date of the latest closing of the stock book
or compilation of list of stockholders of the respondent, prior to the end of the year, had the highest voting powers in the respondent, and
state the number of votes that each could cast on that date if a meeting were held. If any such holder held in trust, give in a footnote the
known particulars of the trust (whether voting trust, etc.), duration of trust, and principal holders of beneficiary interests in the trust. If the
company did not close the stock book or did not compile a list of stockholders within one year prior to the end of the year, or if since it
compiled the previous list of stockholders, some other class of security has become vested with voting rights, then show such 10 security
holders as of the close of the year. Arrange the names of the security holders in the order of voting power, commencing with the
highest. Show in column (a) the titles of officers and directors included in such list of 10 security holders.
2. If any security other than stock carries voting rights, explain in a supplemental statement how such security became vested with
voting rights and give other important details concerning the voting rights of such security. State whether voting rights are actual or
contingent; if contingent, describe the contingency.
3. If any class or issue of security has any special privileges in the election of directors, trustees or managers, or in the determination
of corporate action by any method, explain briefly in a footnote.
4. Furnish details concerning any options, warrants, or rights outstanding at the end of the year for others to purchase securities of the
respondent or any securities or other assets owned by the respondent, including prices, expiration dates, and other material information
relating to exercise of the options, warrants, or rights. Specify the amount of such securities or assets any officer, director, associated
company, or any of the 10 largest security holders is entitled to purchase. This instruction is inapplicable to convertible securities or to
any securities substantially all of which are outstanding in the hands of the general public where the options, warrants, or rights were
Common Stock
(c)
Preferred Stock
(d)
1. Give date of the latest closing of the stock
book prior to end of year, and, in a footnote, state
the purpose of such closing:
2. State the total number of votes cast at the latest general
meeting prior to the end of year for election of directors of the
respondent and number of such votes cast by proxy.
3. Give the date and place of
such meeting:
Total:
By Proxy:
VOTING SECURITIES
4. Number of votes as of (date):
TOTAL votes of all voting securities 5 67,176,996 67,176,996
TOTAL number of security holders 6 7,076 7,076
TOTAL votes of security holders listed below 7 33,210,465 33,210,465
8
BlackRock; 40 E 52nd Street New York, NY 9 12,512,357 12,512,357
The Vanguard Group; 100 Vanguard Blvd Malvern PA 10 7,734,202 7,734,202
Renaissance Technologies LLC; New York, NY 11 2,382,518 2,382,518
SSGA Funds Management, Inc.; Boston MA 12 2,306,793 2,306,793
BNY Mellon; Boston, MA 13 1,867,223 1,867,223
First Sentier Investors IM Ltd.; Barangaroo, AUS 14 1,449,879 1,449,879
Dimensional Fund Advisors LP; Austin TX 15 1,343,463 1,343,463
Inesco US; Downers Grove, IL 16 1,273,032 1,273,032
Acadian Asset Management LLC; Boston, MA 17 1,190,749 1,190,749
Hotchkis & Wiley Capital Management LLC; Los Angeles, CA 18 1,150,249 1,150,249
19
20
Page 107FERC FORM NO. 2 (12-96)
Schedule Page: 107 Line No.: 1 Column: 1
Record Date for dividend payable 12/13/19
Schedule Page: 107 Line No.: 9 Column: b
The holdings are pursuant to Avista's Institutional Investor Contact list provided by Proxy Solicitor DF King & Co., as of
December 31, 2019. These investors hold their shares through Cede & Company and are beneficial owners.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
FOOTNOTE DATA
FERC FORM NO. 2 (12-96)Page 552.1
Give details concerning the matters indicated below. Make the statements explicit and precise, and number them in accordance with the inquiries.
Answer each inquiry. Enter "none" or "not applicable" where applicable. If the answer is given elsewhere in the report, refer to the schedule in
which it appears.
1. Changes in and important additions to franchise rights: Describe the actual consideration and state from whom the franchise rights were
acquired. If the franchise rights were acquired without the payment of consideration, state that fact.
2. Acquisition of ownership in other companies by reorganization, merger, or consolidation with other companies: Give names of companies
involved, particulars concerning the transactions, name of the Commission authorizing the transaction, and reference to Commission
authorization.
3. Purchase or sale of an operating unit or system: Briefly describe the property, and the related transactions, and cite Commission
authorization, if any was required. Give date journal entries called for by Uniform System of Accounts were submitted to the Commission.
4. Important leaseholds (other than leaseholds for natural gas lands) that have been acquired or given, assigned or surrendered: Give effective
dates, lengths of terms, names of parties, rents, and other conditions. State name of Commission authorizing lease and give reference to such
authorization. 5. Important extension or reduction of transmission or distribution system: State territory added or relinquished and date operations began or
ceased and cite Commission authorization, if any was required. State also the approximate number of customers added or lost and approximate
annual revenues of each class of service.
Each natural gas company must also state major new continuing sources of gas made available to it from purchases, development, purchase
contract or otherwise, giving location and approximate total gas volumes available, period of contracts, and other parties to any such
arrangements, etc.
6. Obligations incurred or assumed by respondent as guarantor for the performance by another of any agreement or obligation, including
ordinary commercial paper maturing on demand or not later than one year after date of issue: State on behalf of whom the obligation was
assumed and amount of the obligation. Cite Commission authorization if any was required.
7. Changes in articles of incorporation or amendments to charter: Explain the nature and purpose of such changes or amendments.
8. State the estimated annual effect and nature of any important wage scale changes during the year.
9. State briefly the status of any materially important legal proceedings pending at the end of the year, and the results of any such proceedings
culminated during the year.
10. Describe briefly any materially important transactions of the respondent not disclosed elsewhere in this report in which an officer, director,
security holder, voting trustee, associated company or known associate of any of these persons was a party or in which any such person had amaterial interest.
11. Estimated increase or decrease in annual revenues caused by important rate changes: State effective date and approximate amount of
increase or decrease for each revenue classification. State the number of customers affected.
12. Describe fully any changes in officers, directors, major security holders and voting powers of the respondent that may have occurred during
the reporting period.
13. In the event that the respondent participates in a cash management program(s) and its proprietary capital ratio is less than 30 percent please
describe the significant events or transactions causing the proprietary capital ratio to be less than 30 percent, and the extent to which the
respondent has amounts loaned or money advanced to its parent, subsidiary, or affiliated companies through a cash management program(s).
Additionally, please describe plans, if any to regain at least a 30 percent proprietary ratio.
1. None
2. None
3. On July 19, 2017, Avista Corp. entered into a definitive merger agreement to become an indirect, wholly-owned
subsidiary of Hydro One Limited (Hydro One) in Ontario. On January 23, 2019, this transaction was terminated by
mutual agreement between Avista Corp. and Hydro One and certain subsidiaries thereof. As a result, Hydro One paid
Avista Corp. a $103 million termination fee. Reference is made to Note 18 of the Notes to Financial Statements for further
information.
4. None
5. None
6. Reference is made to Notes 11 and 12 of the Notes to Financial Statements.
7. None
8. Average annual wage increases were 2.9% for non-exempt employees effective March 4, 2019. Average annual wage
increases were 3.1% for exempt employees effective March 4, 2019. Officers received average increases of 4.1% effective
February 18, 2019. Certain bargaining unit employees received increases of 3.0% effective March 26, 2019.
9. Reference is made to Note 16 of the Notes to Financial Statements.
10. None
11.
2015 Washington General Rate Cases
In January 2016, the Company received an order (Order 05) that concluded its electric and natural gas general rate cases that were
originally filed with the WUTC in February 2015. New electric and natural gas rates were effective on January 11, 2016.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Important Changes During the Quarter/Year
FERC FORM NO. 2 (12-96)108.1
PC Petition for Judicial Review
In March 2016, PC filed in Thurston County Superior Court a Petition for Judicial Review of the WUTC's Order 05 described above.
In April 2016, this matter was certified for review directly by the Court of Appeals, an intermediate appellate court in the State of
Washington.
On August 7, 2018, the Court of Appeals issued a "Published Opinion" (Opinion) which concluded that the WUTC's use of an
attrition allowance to calculate Avista Corp.'s rate base violated Washington law. In the Opinion, the Court stated that because the
projected additions to rate base in the future were not "used and useful" for service at the time the request for the rate increase was
made, they may not lawfully be included in the Company's rate base to justify a rate increase. Accordingly, the Court concluded that
the WUTC erred in including an attrition allowance in the calculation of Avista Corp.’s electric and natural gas rate base. The Court
noted, however, that the law does not prohibit an attrition allowance in the calculation, for ratemaking purposes, of recoverable
operating and maintenance expense. Since the WUTC order provided one lump sum attrition allowance without distinguishing what
portion was for rate base and which was for operating and maintenance expenses or other considerations, the Court struck all portions
of the attrition allowance attributable to Avista Corp.'s rate base and reversed and remanded the case for the WUTC to recalculate
Avista Corp.’s rates without including an attrition allowance in the calculation of rate base.
On March 6, 2020, the Company received an order from the WUTC that will require it to refund $8.5 million to electric and natural
gas customers. The Company will refund $4.9 million to electric customers and $3.6 million to natural gas customers. The Company
recorded a customer refund liability of $8.5 million in 2019.
2017 General Rate Cases
On April 26, 2018, the WUTC issued a final order in our electric and natural gas general rate cases that were originally
filed on May 26, 2017. In the order, the WUTC approved new electric rates, effective on May 1, 2018, that increased base
rates by 2.2 percent (designed to increase electric revenues by $10.8 million). The net increase in electric base rates was
made up of an increase in our base revenue requirement of $23.2 million, an increase of $14.5 million in power supply
costs and a decrease of $26.9 million for the impacts of the TCJA, which reflects the federal income tax rate change from
35 percent to 21 percent and the amortization of the regulatory liability for plant excess deferred income taxes that was
recorded as of December 31, 2017.
While the WUTC authorized an increase in the ERM baseline to reflect increased power supply costs, it directed the
parties to examine the functionality and rationale of the Company's power cost modeling and adjust the baseline only in
extraordinary circumstances if necessary to more closely match the baseline to actual conditions.
For natural gas, the WUTC approved new natural gas base rates, effective on May 1, 2018, that decreased base rates by
2.4 percent (designed to decrease natural gas revenues by $2.1 million). The net decrease in natural gas base rates was
made up of an increase in base revenues of $3.4 million that was offset by a decrease of $5.5 million for the impacts from
the TCJA, which reflects the federal income tax rate change and the amortization of the regulatory liability for
plant-related excess deferred income taxes that was recorded as of December 31, 2017.
In addition to the above, the WUTC also ordered, effective June 1, 2018, a one-year temporary reduction of $7.9 million
in our revenue requirements for electric and $3.2 million for natural gas, reflecting reductions for the return of tax benefits
associated with the non-plant excess deferred income taxes and the customer refund liability that was established in 2018
related to the change in federal income tax expense for the period January 1, 2018 to April 30, 2018.
The new rates are based on a ROR of 7.50 percent with a common equity ratio of 48.5 percent and a 9.5 percent ROE.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Important Changes During the Quarter/Year
FERC FORM NO. 2 (12-96)108.2
In our original filings, we requested three-year rate plans for electric and natural gas; however, in the final order the
WUTC only provided for new rates effective on May 1, 2018.
TCJA Proceedings
In February 2019, we filed an all-party settlement agreement with the WUTC related to the electric tax benefits associated
with the TCJA that were set aside for Colstrip in the 2017 general rate case order (effective May 1, 2018). In the
settlement agreement, the parties agreed to utilize $10.9 million of the electric tax benefits to offset costs associated with
accelerating the depreciation of Colstrip Units 3 & 4, to reflect a remaining useful life of those units through December
31, 2027. That portion of the settlement agreement was denied. The WUTC has indicated that it will review the TCJA and
Colstrip in our 2019 general rate case (discussed below).
2019 General Rate Cases
On March 25, 2020, the Company received an order from the WUTC that approved the partial multi-party settlement
agreement that was filed on November 21, 2019.
The approved rates are designed to increase annual base electric revenues by $28.5 million, or 5.7 percent, and annual
natural gas base revenues by $8.0 million, or 8.5 percent, effective April 1, 2020. The revenue increases are based on a 9.4
percent return on equity with a common equity ratio of 48.5 percent and a rate of return on rate base of 7.21 percent.
As part of the WUTC order, the Company will return approximately $40 million from the Energy Recovery Mechanism
(ERM) rebate to customers over a two-year period. The ERM rebate includes approximately $3 million that was recently
disallowed by the Commission for the cost of replacement power during an unplanned outage at the Colstrip generating
facility (Colstrip) in 2018. The Commission directed the Company to return a larger portion of the ERM money during the
first year to achieve a net-zero billed impact to electric customers.
Included in the WUTC order is the acceleration of depreciation of Colstrip Units 3 & 4, to reflect a remaining useful life
through December 31, 2025. The order utilizes certain electric tax benefits associated with the 2018 tax reform to partially
offset these increased costs. The order also sets aside $3 million for community transition efforts to mitigate the impacts
of the eventual closure of Colstrip, half funded by customers and half funded by Company shareholders.
In addition, a recent order received from the WUTC on the 2015 remand cases requires the Company to refund $8.5
million to electric and natural gas customers. The Company will refund $4.9 million to electric customers and $3.6 million
to natural gas customers over a one year period, which will partially offset the increase in base rates.
Lastly, the order includes the extension of electric and natural gas decoupling mechanisms through March 31, 2025.
Idaho General Rate Cases and Other Proceedings
2017 General Rate Cases
On December 28, 2017, the IPUC approved a settlement agreement between us and other parties to our electric and
natural gas general rate cases. New rates were effective on January 1, 2018 and January 1, 2019.
The settlement agreement was a two-year rate plan and had the following electric and natural gas base rate changes each
year, which were designed to result in the following increases in annual revenues (dollars in millions):
Electric Natural Gas
Effective Date Revenue Base Revenue Base
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Important Changes During the Quarter/Year
FERC FORM NO. 2 (12-96)108.3
Increase Rate Increase Increase Rate Increase
January 1, 2018 $ 12.9 5.2% $ 1.2 2.9%
January 1, 2019 $ 4.5 1.8% $ 1.1 2.7%
The settlement agreement was based on a ROR of 7.61 percent with a common equity ratio of 50.0 percent and a 9.5
percent ROE.
TCJA Proceedings
On May 31, 2018, the IPUC approved an all-party settlement agreement related to the income tax benefits associated with
the TCJA. Effective June 1, 2018, current customer rates were reduced to reflect the reduction of the federal income tax
rate to 21 percent, and the amortization of the regulatory liability for plant-related excess deferred income taxes. This
reduction reduces annual electric rates by $13.7 million (or 5.3 percent reduction to base rates) and natural gas rates by
$2.6 million (or 6.1 percent reduction to base rates).
In March 2019, the IPUC approved an all-party settlement agreement related to the electric tax benefits that were set aside
for Colstrip in the 2017 general rate case order. In the approved settlement agreement, the parties agreed to utilize
approximately $6.4 million ($5.1 million when tax-effected) of the electric tax benefits to offset costs associated with
accelerating the depreciation of Colstrip Units 3 & 4, to reflect a remaining useful life of those units through December
31, 2027. The remaining tax benefits of approximately $5.8 million will be returned to customers through a temporary rate
reduction over a period of one year beginning on April 1, 2019. The tax benefits being utilized are related to non-plant
excess deferred income taxes, and the customer refund liability that was established in 2018 related to the change in
federal income tax expense for the period January 1, 2018 to May 31, 2018.
2019 General Rate Case
On October 11, 2019, Avista Corp. and all parties to our electric general rate case reached a settlement agreement that was
approved by the IPUC. New rates went into effect on December 1, 2019.
The rates that went into effect are designed to decrease annual base electric revenues by $7.2 million (or 2.8 percent),
effective December 1, 2019. The settlement revenue decreases are based on a 9.5 percent ROE with a common equity
ratio of 50 percent and a rate of return ROR on rate base of 7.35 percent, which is a continuation of current levels. This
outcome is in line with our expectations.
The primary element of the difference in the agreed upon base revenues in the settlement agreement from our original
request is that the settlement includes the continued recovery of costs for our wind generation power purchase agreements,
which will include Palouse Wind and Rattlesnake Flat, through the PCA mechanism rather than through base rates.
Our original request included an increase of annual electric base revenues of $5.3 million or 2.1 percent, effective January
1, 2020.
The electric request was based on a proposed ROR on rate base of 7.55 percent with a common equity ratio of 50 percent
and a 9.9 percent ROE, as well as the inclusion of wind power purchase costs in base rates rather than receiving recovery
through the PCA.
Oregon General Rate Cases and Other Proceedings
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Important Changes During the Quarter/Year
FERC FORM NO. 2 (12-96)108.4
2019 General Rate Case
On October 9, 2019, the OPUC approved the all-party settlement agreements filed in the third quarter of 2019. New rates
went into effect on January 15, 2020.
OPUC approved rates that are designed to increase annual natural gas billed revenues by $3.6 million, or 4.2 percent.
The OPUC’s decision reflects a ROR on rate base of 7.24 percent, with a common equity ratio of 50 percent and a 9.4
percent ROE, both of which represent a continuation of existing authorized levels.
In addition, the approved settlement agreements included agreement among the parties to a future independent review of
our interest rate hedging practices, with any recommendations based on the results and findings in the final report to be
applicable only on a prospective basis and do not apply to any prior interest rate hedging activity.
TCJA Proceedings
In February 2019, the OPUC approved the deferral amount of $3.8 million related to 2018 income tax benefits associated
with the TCJA. The 2018 deferred benefits will be returned to customers through a temporary rate reduction over a period
of one year beginning March 1, 2019. We continued the deferral of the TCJA benefits during 2019 for later return to
customers, until such time as these changes can be reflected in base rates.
12. On March 22, 2019, Erik J. Anderson, member of the Board of Directors of Avista Corp., informed the Company that
he would not stand for reelection to the Board of Directors for 2019. Mr. Anderson remained with the Board of Directors
through the Annual Meeting of Shareholders held on May 9, 2019.
Mr. Anderson chose not to stand for reelection due to other professional commitments. There were no disagreements with
the Company that contributed to Mr. Anderson's decision.
On May 10, 2019, Scott L. Morris, Chairman of the Board and Chief Executive Officer of Avista Corp., announced to the
Company’s board of directors, that he will retire from the Company effective March 1, 2020. Following Mr. Morris’
announcement, the Company’s board of directors appointed Dennis P. Vermillion Chief Executive Officer effective
October 1, 2019. Mr. Morris continued to serve as the Executive Chairman of the board of directors of the Company and
then as the non-executive Chairman of the board of directors following his retirement. Mr. Vermillion will continue to
serve on the Company’s board of directors.
On June 14, 2019, the Board of Directors of Avista Corp. increased the number of board members from 10 to 11, effective
November 1, 2019, and elected Jeff L. Philipps to fill the vacancy and serve as a director on the board effective on that
date. Mr. Philipps will stand for election to the Board at the next annual meeting of shareholders on May 11, 2020. Mr.
Philipps will serve on the Finance Committee and the Environmental, Technology and Operations Committee of the
Board.
On August 8, 2019, the Board of Directors named Mark T. Thies, Executive Vice President Chief Financial Officer and
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Important Changes During the Quarter/Year
FERC FORM NO. 2 (12-96)108.5
Treasurer of Avista Corp. effective October 1, 2019. Mr. Thies has served as the Company’s Senior Vice President CFO
and Treasurer since January 1, 2013 and previously served as the Company’s Senior Vice President CFO since September
29, 2008.
In August 2019, Karen S. Feltes, Senior Vice President and Chief Human Resources Officer, informed the Board of
Directors that she plans to retire effective March 1, 2020.
Effective October 1, 2019, Heather L. Rosentrater has been promoted from Vice President, Energy Delivery to Senior
Vice President, Energy Delivery.
Effective October 1, 2019, Kevin J. Christie has been promoted from Vice President, External Affairs and Chief Customer
Officer to Senior Vice President, External Affairs and Chief Customer Officer.
Effective January 1, 2020, Marian Durkin moved from Chief Compliance Officer to Chief Legal Officer. She retained her
role as the Corporate Secretary. In addition, she informed the Board of Directors that she plans to retire effective August
1, 2020.
Effective January 1, 2020, Greg Hesler has been promoted from Senior Counsel II to Vice President, General Counsel
Chief Compliance Officer.
Effective January 1, 2020, Latisha Hill has been promoted from Director of Business and Community Development to
Vice President of Community and Economic Vitality.
13. Proprietary capital is not less than 30 percent.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Important Changes During the Quarter/Year
FERC FORM NO. 2 (12-96)108.6
Comparative Balance Sheet (Assets and Other Debits)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Current Year End of
Quarter/Year Balance
(c)
Prior Year
End Balance
12/31
(d)
0UTILITY PLANT 0 1
6,004,750,680Utility Plant (101-106, 114) 6,385,433,383200-201 2
156,563,570Construction Work in Progress (107) 157,909,990200-201 3
6,161,314,250 TOTAL Utility Plant (Total of lines 2 and 3) 6,543,343,373200-201 4
1,991,240,383(Less) Accum. Provision for Depr., Amort., Depl. (108, 111, 115) 2,121,893,905 5
4,170,073,867Net Utility Plant (Total of line 4 less 5) 4,421,449,468 6
0Nuclear Fuel (120.1 thru 120.4, and 120.6) 0 7
0(Less) Accum. Provision for Amort., of Nuclear Fuel Assemblies (120.5) 0 8
0Nuclear Fuel (Total of line 7 less 8) 0 9
4,170,073,867Net Utility Plant (Total of lines 6 and 9) 4,421,449,468 10
0Utility Plant Adjustments (116) 0122 11
6,992,076Gas Stored-Base Gas (117.1) 6,992,076220 12
0System Balancing Gas (117.2) 0220 13
0Gas Stored in Reservoirs and Pipelines-Noncurrent (117.3) 0220 14
0Gas Owed to System Gas (117.4) 0220 15
0OTHER PROPERTY AND INVESTMENTS 0 16
4,474,923Nonutility Property (121) 4,340,611 17
140,360(Less) Accum. Provision for Depreciation and Amortization (122) 176,234 18
11,547,000Investments in Associated Companies (123) 11,547,000222-223 19
153,523,686Investments in Subsidiary Companies (123.1) 207,105,954224-225 20
0(For Cost of Account 123.1 See Footnote Page 224, line 40) 0 21
0Noncurrent Portion of Allowances 0 22
1,711,072Other Investments (124) 77,972222-223 23
0Sinking Funds (125) 0 24
0Depreciation Fund (126) 0 25
0Amortization Fund - Federal (127) 0 26
18,794,801Other Special Funds (128) 22,034,002 27
4,842,426Long-Term Portion of Derivative Assets (175) 922,948 28
0Long-Term Portion of Derivative Assets - Hedges (176) 0 29
194,753,548 TOTAL Other Property and Investments (Total of lines 17-20, 22-29) 245,852,253 30
0CURRENT AND ACCRUED ASSETS 0 31
4,737,049Cash (131) 3,067,240 32
26,809,063Special Deposits (132-134) 4,434,090 33
709,204Working Funds (135) 730,965 34
136,712Temporary Cash Investments (136) 155,890222-223 35
0Notes Receivable (141) 0 36
157,729,381Customer Accounts Receivable (142) 153,814,551 37
4,618,679Other Accounts Receivable (143) 15,726,829 38
5,188,090(Less) Accum. Provision for Uncollectible Accounts - Credit (144) 2,373,469 39
31,659,207Notes Receivable from Associated Companies (145) 0 40
154,548Accounts Receivable from Associated Companies (146) 222,671 41
3,982,104Fuel Stock (151) 4,148,891 42
0Fuel Stock Expenses Undistributed (152) 0 43
Page 110FERC FORM NO. 2 (REV 06-04)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Current Year End of
Quarter/Year Balance
(c)
Comparative Balance Sheet (Assets and Other Debits)(continued)
Prior Year
End Balance
12/31
(d)
0Residuals (Elec) and Extracted Products (Gas) (153) 0 44
43,166,166Plant Materials and Operating Supplies (154) 46,558,819 45
0Merchandise (155) 0 46
0Other Materials and Supplies (156) 0 47
0Nuclear Materials Held for Sale (157) 0 48
0Allowances (158.1 and 158.2) 0 49
0(Less) Noncurrent Portion of Allowances 0 50
0Stores Expense Undistributed (163) 0 51
11,609,184Gas Stored Underground-Current (164.1) 14,305,397220 52
0Liquefied Natural Gas Stored and Held for Processing (164.2 thru 164.3) 0220 53
20,211,526Prepayments (165) 24,682,259230 54
0Advances for Gas (166 thru 167) 0 55
166,418Interest and Dividends Receivable (171) 129,823 56
2,516,807Rents Receivable (172) 3,609,148 57
0Accrued Utility Revenues (173) 0 58
398,132Miscellaneous Current and Accrued Assets (174) 193,803 59
10,394,941Derivative Instrument Assets (175) 1,780,327 60
4,842,426(Less) Long-Term Portion of Derivative Instrument Assets (175) 922,948 61
0Derivative Instrument Assets - Hedges (176) 0 62
0(Less) Long-Term Portion of Derivative Instrument Assests - Hedges (176) 0 63
308,968,605 TOTAL Current and Accrued Assets (Total of lines 32 thru 63) 270,264,286 64
0DEFERRED DEBITS 0 65
13,923,600Unamortized Debt Expense (181) 13,795,818 66
0Extraordinary Property Losses (182.1) 0230 67
0Unrecovered Plant and Regulatory Study Costs (182.2) 0230 68
598,724,109Other Regulatory Assets (182.3) 643,207,368232 69
2,313Preliminary Survey and Investigation Charges (Electric)(183) 0 70
0Preliminary Survey and Investigation Charges (Gas)(183.1 and 183.2) 0 71
28,530Clearing Accounts (184) 131,978 72
0Temporary Facilities (185) 0 73
30,900,539Miscellaneous Deferred Debits (186) 18,484,386233 74
0Deferred Losses from Disposition of Utility Plant (187) 0 75
0Research, Development, and Demonstration Expend. (188) 0 76
10,255,271Unamortized Loss on Reacquired Debt (189) 8,883,822 77
187,450,520Accumulated Deferred Income Taxes (190) 177,056,526234-235 78
( 40,713,156)Unrecovered Purchased Gas Costs (191) ( 3,189,401) 79
800,571,726 TOTAL Deferred Debits (Total of lines 66 thru 79) 858,370,497 80
5,481,359,822 TOTAL Assets and Other Debits (Total of lines 10-15,30,64,and 80) 5,802,928,580 81
Page 111FERC FORM NO. 2 (REV 06-04)
Comparative Balance Sheet (Liabilities and Other Credits)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Current Year
End of
Quarter/Year
Balance
Prior Year
End Balance
12/31
(d)
PROPRIETARY CAPITAL 0 0 1
Common Stock Issued (201) 1,110,871,767 1,176,498,977250-251 2
Preferred Stock Issued (204) 0 0250-251 3
Capital Stock Subscribed (202, 205) 0 0252 4
Stock Liability for Conversion (203, 206) 0 0252 5
Premium on Capital Stock (207) 0 0252 6
Other Paid-In Capital (208-211)( 10,696,711)( 10,696,711)253 7
Installments Received on Capital Stock (212) 0 0252 8
(Less) Discount on Capital Stock (213) 0 0254 9
(Less) Capital Stock Expense (214)( 36,316,031)( 44,938,398)254 10
Retained Earnings (215, 215.1, 216) 660,984,141 747,158,701118-119 11
Unappropriated Undistributed Subsidiary Earnings (216.1)( 16,389,107)( 13,386,701)118-119 12
(Less) Reacquired Capital Stock (217) 0 0250-251 13
Accumulated Other Comprehensive Income (219)( 7,866,070)( 10,258,024)117 14
TOTAL Proprietary Capital (Total of lines 2 thru 14) 1,773,220,051 1,934,254,640 15
LONG TERM DEBT 0 0 16
Bonds (221) 1,814,200,000 1,904,200,000256-257 17
(Less) Reacquired Bonds (222) 83,700,000 83,700,000256-257 18
Advances from Associated Companies (223) 51,547,000 51,547,000256-257 19
Other Long-Term Debt (224) 0 0256-257 20
Unamortized Premium on Long-Term Debt (225) 151,017 142,133258-259 21
(Less) Unamortized Discount on Long-Term Debt-Dr (226) 1,032,761 930,270258-259 22
(Less) Current Portion of Long-Term Debt 0 0 23
TOTAL Long-Term Debt (Total of lines 17 thru 23) 1,781,165,256 1,871,258,863 24
OTHER NONCURRENT LIABILITIES 0 0 25
Obligations Under Capital Leases-Noncurrent (227) 0 65,565,105 26
Accumulated Provision for Property Insurance (228.1) 0 0 27
Accumulated Provision for Injuries and Damages (228.2) 245,000 245,000 28
Accumulated Provision for Pensions and Benefits (228.3) 222,536,776 212,005,607 29
Accumulated Miscellaneous Operating Provisions (228.4) 0 0 30
Accumulated Provision for Rate Refunds (229) 10,178,645 11,767,158 31
Page 112FERC FORM NO. 2 (REV 06-04)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Current Year
End of
Quarter/Year
Balance
Comparative Balance Sheet (Liabilities and Other Credits)(continued)
Prior Year
End Balance
12/31
(d)
Long-Term Portion of Derivative Instrument Liabilities 10,300,047 19,684,476 32
Long-Term Portion of Derivative Instrument Liabilities - Hedges 0 0 33
Asset Retirement Obligations (230) 18,265,985 20,338,053 34
TOTAL Other Noncurrent Liabilities (Total of lines 26 thru 34) 261,526,453 329,605,399 35
CURRENT AND ACCRUED LIABILITIES 0 0 36
Current Portion of Long-Term Debt 0 0 37
Notes Payable (231) 190,000,000 182,300,000 38
Accounts Payable (232) 103,484,597 107,406,813 39
Notes Payable to Associated Companies (233) 0 14,722,348 40
Accounts Payable to Associated Companies (234) 7,329 0 41
Customer Deposits (235) 4,783,254 4,745,573 42
Taxes Accrued (236) 39,835,469 38,022,918262-263 43
Interest Accrued (237) 15,509,062 15,282,041 44
Dividends Declared (238) 0 0 45
Matured Long-Term Debt (239) 0 0 46
Matured Interest (240) 0 0 47
Tax Collections Payable (241) 79,542 168,034 48
Miscellaneous Current and Accrued Liabilities (242) 56,358,807 50,808,479268 49
Obligations Under Capital Leases-Current (243) 0 4,127,561 50
Derivative Instrument Liabilities (244) 14,252,910 30,612,670 51
(Less) Long-Term Portion of Derivative Instrument Liabilities 10,300,047 19,684,476 52
Derivative Instrument Liabilities - Hedges (245) 0 0 53
(Less) Long-Term Portion of Derivative Instrument Liabilities - Hedges 0 0 54
TOTAL Current and Accrued Liabilities (Total of lines 37 thru 54) 414,010,923 428,511,961 55
DEFERRED CREDITS 0 0 56
Customer Advances for Construction (252) 2,142,205 2,083,490 57
Accumulated Deferred Investment Tax Credits (255) 29,725,443 30,443,961 58
Deferred Gains from Disposition of Utility Plant (256) 0 0 59
Other Deferred Credits (253) 22,466,066 29,659,558269 60
Other Regulatory Liabilities (254) 527,440,814 481,207,133278 61
Unamortized Gain on Reacquired Debt (257) 1,577,896 1,448,359260 62
Accumulated Deferred Income Taxes - Accelerated Amortization (281) 0 0 63
Accumulated Deferred Income Taxes - Other Property (282) 497,875,564 514,870,007 64
Accumulated Deferred Income Taxes - Other (283) 170,209,151 179,585,209 65
TOTAL Deferred Credits (Total of lines 57 thru 65) 1,251,437,139 1,239,297,717 66
TOTAL Liabilities and Other Credits (Total of lines 15,24,35,55,and 66) 5,481,359,822 5,802,928,580 67
Page 113FERC FORM NO. 2 (REV 06-04)
Prior Three
Months Ended
Quarterly Only
No Fourth Quarter
(f)
Total
Current Year to
Date Balance
for Quarter/Year
(c)
Quarterly
1. Enter in column (d) the balance for the reporting quarter and in column (e) the balance for the same three month period for the prior year.
2. Report in column (f) the quarter to date amounts for electric utility function; in column (h) the quarter to date amounts for gas utility, and in (j) the quarter to date amounts for
other utility function for the current year quarter.
3. Report in column (g) the quarter to date amounts for electric utility function; in column (i) the quarter to date amounts for gas utility, and in (k) the quarter to date amounts for
other utility function for the prior year quarter.
4. If additional columns are needed place them in a footnote.
Annual or Quarterly, if applicable
5. Do not report fourth quarter data in columns (e) and (f)
6. Report amounts for accounts 412 and 413, Revenues and Expenses from Utility Plant Leased to Others, in another utility columnin a similar manner to a utility department.
Spread the amount(s) over lines 2 thru 26 as appropriate. Include these amounts in columns (c) and (d) totals.
7. Report amounts in account 414, Other Utility Operating Income, in the same manner as accounts 412 and 413 above.
8. Report data for lines 8, 10 and 11 for Natural Gas companies using accounts 404.1, 404.2, 404.3, 407.1 and 407.2.
9. Use page 122 for important notes regarding the statement of income for any account thereof.
10. Give concise explanations concerning unsettled rate proceedings where a contingency exists such that refunds of a material amount may need to be made to the utility's
customers or which may result in material refund to the utility with respect to power or gas purchases. State for each year effected the gross revenues or costs to which the
contingency relates and the tax effects together with an explanation of the major factors which affect the rights of the utility to retain such revenues or recover amounts paid
with respect to power or gas purchases.
11 Give concise explanations concerning significant amounts of any refunds made or received during the year resulting from settlement of any rate proceeding affecting
revenues received or costs incurred for power or gas purches, and a summary of the adjustments made to balance sheet, income, and expense accounts.
12. If any notes appearing in the report to stokholders are applicable to the Statement of Income, such notes may be included at page 122.
13. Enter on page 122 a concise explanation of only those changes in accounting mehods made during the year which had an effect on net income, including the basis of
allocations and apportionments from those used in the preceding year. Also, give the appropriate dollar effect of such changes.
14. Explain in a footnote if the previous year's/quarter's figures are different from that reported in prior reports.
15. If the columns are insufficient for reporting additional utility departments, supply the appropriate account titles report the information in a footnote to this schedule.
Statement of Income
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Title of Account
(a)
Reference
Page
Number
(b)
Total
Prior Year to Date
Balance
for Quarter/Year
(d)
Current Three
Months Ended
Quarterly Only
No Fourth Quarter
(e)
0 0 0 0UTILITY OPERATING INCOME 1
1,416,798,041 1,428,099,066 0 0Gas Operating Revenues (400) 300-301 2
0 0 0 0Operating Expenses 3
804,773,049 818,533,678 0 0 Operation Expenses (401) 317-325 4
63,628,892 70,160,821 0 0 Maintenance Expenses (402) 317-325 5
146,501,216 163,503,287 0 0 Depreciation Expense (403) 336-338 6
268,929 0 0 0 Depreciation Expense for Asset Retirement Costs (403.1) 336-338 7
34,897,443 40,625,925 0 0 Amortization and Depletion of Utility Plant (404-405) 336-338 8
99,047 99,047 0 0 Amortization of Utility Plant Acu. Adjustment (406) 336-338 9
0 0 0 0 Amort. of Prop. Losses, Unrecovered Plant and Reg. Study Costs (407.1) 10
0 0 0 0 Amortization of Conversion Expenses (407.2) 11
6,384,995 7,343,187 0 0 Regulatory Debits (407.3) 12
11,255,061 24,373,462 0 0 (Less) Regulatory Credits (407.4) 13
105,935,344 104,229,614 0 0 Taxes Other than Income Taxes (408.1) 262-263 14
21,463,627 1,016,853 0 0 Income Taxes-Federal (409.1) 262-263 15
536,050( 512,990) 0 0 Income Taxes-Other (409.1) 262-263 16
9,917,224 16,095,155 0 0 Provision of Deferred Income Taxes (410.1) 234-235 17
836,768 3,735,815 0 0 (Less) Provision for Deferred Income Taxes-Credit (411.1) 234-235 18
( 540,168) 718,518 0 0 Investment Tax Credit Adjustment-Net (411.4) 19
0 0 0 0 (Less) Gains from Disposition of Utility Plant (411.6) 20
0 0 0 0 Losses from Disposition of Utility Plant (411.7) 21
0 0 0 0 (Less) Gains from Disposition of Allowances (411.8) 22
0 0 0 0 Losses from Disposition of Allowances (411.9) 23
850,233 0 0 0 Accretion Expense (411.10) 24
1,182,624,052 1,193,703,818 0 0 TOTAL Utility Operating Expenses (Total of lines 4 thru 24) 25
234,173,989 234,395,248 0 0
Net Utility Operating Income (Total of lines 2 less 25) (Carry forward to page 116,
line 27)
26
Page 114FERC FORM NO. 2 (REV 06-04)
Statement of Income
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Gas Utility
Current
Year to Date
(in dollars)
(i)
Gas Utility
Previous
Year to Date
(in dollars)
(j)
Elec. Utility
Current
Year to Date
(in dollars)
(g)
Elec. Utility
Previous
Year to Date
(in dollars)
(h)
Other Utility
Current
Year to Date
(in dollars)
(k)
Other Utility
Previous
Year to Date
(in dollars)
(l)
0 0 0 0 0 1 0
0 444,615,322 430,392,719 986,405,322 983,483,744 2 0
0 0 0 0 0 3 0
0 303,138,157 288,074,151 516,698,898 515,395,521 4 0
0 15,618,412 13,893,589 49,735,303 54,542,409 5 0
0 36,824,230 33,889,018 112,612,198 126,679,057 6 0
0 0 0 268,929 0 7 0
0 10,079,068 8,582,105 26,315,338 30,546,857 8 0
0 0 0 99,047 99,047 9 0
0 0 0 0 0 10 0
0 0 0 0 0 11 0
0 1,453,061 1,354,735 5,030,260 5,890,126 12 0
0 3,442,644 1,566,161 9,688,900 20,930,818 13 0
0 24,983,566 25,145,281 80,790,063 79,246,048 14 0
0( 6,428,201) 2,752,311 18,711,316 7,445,054 15 0
0( 8,110) 102,362 433,688( 504,880) 16 0
0 11,059,318 4,191,080 5,726,144 5,035,837 17 0
0 1,346,919 ( 116,242) 953,010 2,388,896 18 0
0 172,256 ( 20,064)( 520,104) 546,262 19 0
0 0 0 0 0 20 0
0 0 0 0 0 21 0
0 0 0 0 0 22 0
0 0 0 0 0 23 0
0 0 0 850,233 0 24 0
0 392,102,194 376,514,649 806,109,403 801,601,624 25 0
0 52,513,128 53,878,070 180,295,919 181,882,120 26 0
Page 115FERC FORM NO. 2 (REV 06-04)
Prior Three
Months Ended
Quarterly Only
No Fourth Quarter
(f)
Total
Current Year to
Date Balance
for Quarter/Year
(c)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Title of Account
(a)
Reference
Page
Number
(b)
Statement of Income(continued)
Total
Prior Year to Date
Balance
for Quarter/Year
(d)
Current Three
Months Ended
Quarterly Only
No Fourth Quarter
(e)
234,173,989 234,395,248 0 0 Net Utility Operating Income (Carried forward from page 114) 27
0 0 0 0OTHER INCOME AND DEDUCTIONS 28
0 0 0 0Other Income 29
0 0 0 0 Nonutility Operating Income 30
0 0 0 0 Revenues form Merchandising, Jobbing and Contract Work (415) 31
0 0 0 0 (Less) Costs and Expense of Merchandising, Job & Contract Work (416) 32
0 0 0 0 Revenues from Nonutility Operations (417) 33
6,931,684 14,612,589 0 0 (Less) Expenses of Nonutility Operations (417.1) 34
( 31,262)( 31,291) 0 0 Nonoperating Rental Income (418) 35
2,392,004 13,582,269 0 0 Equity in Earnings of Subsidiary Companies (418.1) 119 36
3,808,319 4,401,266 0 0 Interest and Dividend Income (419) 37
4,281,829( 104,311) 0 0 Allowance for Other Funds Used During Construction (419.1) 38
0 0 0 0 Miscellaneous Nonoperating Income (421) 39
0 109,159 0 0 Gain on Disposition of Property (421.1) 40
3,519,206 3,344,503 0 0 TOTAL Other Income (Total of lines 31 thru 40) 41
0 0 0 0Other Income Deductions 42
13,251 0 0 0 Loss on Disposition of Property (421.2) 43
0( 33,721) 0 0 Miscellaneous Amortization (425) 44
3,563,420 11,332,979 0 0 Donations (426.1) 340 45
2,793,863 2,640,044 0 0 Life Insurance (426.2) 46
2,053 21,180 0 0 Penalties (426.3) 47
2,073,702 1,718,553 0 0 Expenditures for Certain Civic, Political and Related Activities (426.4) 48
5,342,674 27,317,212 0 0 Other Deductions (426.5) 49
13,788,963 42,996,247 0 0 TOTAL Other Income Deductions (Total of lines 43 thru 49) 340 50
0 0 0 0Taxes Applic. to Other Income and Deductions 51
293,278 311,708 0 0 Taxes Other than Income Taxes (408.2) 262-263 52
( 5,085,932)( 12,211,539) 0 0 Income Taxes-Federal (409.2) 262-263 53
( 220,461)( 549,429) 0 0 Income Taxes-Other (409.2) 262-263 54
34,584( 1,887,439) 0 0 Provision for Deferred Income Taxes (410.2) 234-235 55
231,946 196,940 0 0 (Less) Provision for Deferred Income Taxes-Credit (411.2) 234-235 56
0 0 0 0 Investment Tax Credit Adjustments-Net (411.5) 57
0 0 0 0 (Less) Investment Tax Credits (420) 58
( 5,210,477)( 14,533,639) 0 0 TOTAL Taxes on Other Income and Deductions (Total of lines 52-58) 59
( 5,059,280)( 25,118,105) 0 0 Net Other Income and Deductions (Total of lines 41, 50, 59) 60
0 0 0 0INTEREST CHARGES 61
87,093,842 86,591,406 0 0 Interest on Long-Term Debt (427) 62
321,207 321,206 0 0 Amortization of Debt Disc. and Expense (428) 258-259 63
2,582,801 2,266,507 0 0 Amortization of Loss on Reacquired Debt (428.1) 64
8,883 8,883 0 0 (Less) Amortization of Premium on Debt-Credit (429) 258-259 65
0 0 0 0 (Less) Amortization of Gain on Reacquired Debt-Credit (429.1) 66
0 489,554 0 0 Interest on Debt to Associated Companies (430) 340 67
6,749,117 8,205,984 0 0 Other Interest Expense (431) 340 68
4,052,495 4,169,531 0 0 (Less) Allowance for Borrowed Funds Used During Construction-Credit (432) 69
92,685,589 93,696,243 0 0 Net Interest Charges (Total of lines 62 thru 69) 70
136,429,120 115,580,900 0 0 Income Before Extraordinary Items (Total of lines 27,60 and 70) 71
0 0 0 0EXTRAORDINARY ITEMS 72
0 102,999,990 0 0 Extraordinary Income (434) 73
0 0 0 0 (Less) Extraordinary Deductions (435) 74
0 102,999,990 0 0 Net Extraordinary Items (Total of line 73 less line 74) 75
0 26,631,283 0 0 Income Taxes-Federal and Other (409.3) 262-263 76
0 76,368,707 0 0 Extraordinary Items after Taxes (Total of line 75 less line 76) 77
136,429,120 191,949,607 0 0 Net Income (Total of lines 71 and 77) 78
Page 116FERC FORM NO. 2 (REV 06-04)

This Page Intentionally Left Blank
Name of Respondent This Report Is:(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
1. Report in columns (b) (c) and (e) the amounts of accumulated other comprehensive income items, on a net-of-tax basis, where appropriate.
2. Report in columns (f) and (g) the amounts of other categories of other cash flow hedges.
3. For each category of hedges that have been accounted for as "fair value hedges", report the accounts affected and the related amounts in a footnote.
Item
(a)
Unrealized Gains
and Losses on
available-for-sale
securities
(b)
Minimum Pension
liabililty Adjustment
(net amount)
(c)
Foreign Currency
Hedges
(d)
Other
Adjustments
(e)
Statement of Accumulated Comprehensive Income and Hedging Activities
Balance of Account 219 at Beginning of Preceding
Year ( 8,089,542)
1
Preceding Quarter/Year to Date Reclassifications
from Account 219 to Net Income ( 1,742,363)
2
Preceding Quarter/Year to Date Changes in Fair
Value 1,965,835
3
Total (lines 2 and 3) 223,4724
Balance of Account 219 at End of Preceding
Quarter/Year ( 7,866,070)
5
Balance of Account 219 at Beginning of Current Year ( 7,866,070)6
Current Quarter/Year to Date Reclassifications from
Account 219 to Net Income
7
Current Quarter/Year to Date Changes in Fair Value ( 2,391,954)8
Total (lines 7 and 8)( 2,391,954)9
Balance of Account 219 at End of Current
Quarter/Year ( 10,258,024)
10
FERC FORM NO. 2 (NEW 06-02)Page 117
Name of Respondent This Report Is:(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Statement of Accumulated Comprehensive Income and Hedging Activities(continued)
Other Cash Flow Hedges
Interest Rate Swaps
(f)
Other Cash Flow Hedges
[Insert Footnote at Line 1
to specify category]
(g)
Totals for each
category of
items recorded in
Account 219
(h)
Net Income
(Carried Forward
from Page 116,
Line 78)
(i)
Total
Comprehensive
Income
(j)
( 8,089,542)1
( 1,742,363)2
1,965,8353
136,429,120 136,652,592 223,4724
( 7,866,070)5
( 7,866,070)6
7
( 2,391,954)8
196,979,195 194,587,241( 2,391,954)9
( 10,258,024)10
FERC FORM NO. 2 (NEW 06-02)Page 117a
Schedule Page: 117 Line No.: 2 Column: c
During the first quarter of 2018, Accounting Standards Update No. 2018-02 was adopted,
which resulted in a $1.7 million balance sheet only reclassification from Accumulated
Other Comprehensive Loss to account 439 - Adjustments to Retained Earnings. The
reclassification was the result of the change in federal income tax rates from 35 percent
to 21 percent. Usage of account 439 requires prior FERC approval. See Page 122 Note 2 for
further discussion of the adoption of ASU No. 2018-02 as well as the prior FERC approval.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
FOOTNOTE DATA
FERC FORM NO. 2 (12-96)Page 552.1
1. Report all changes in appropriated retained earnings, unappropriated retained earnings, and unappropriated undistributed subsidiary earnings for the year.
2. Each credit and debit during the year should be identified as to the retained earnings account in which recorded (Accounts 433, 436-439 inclusive). Show the contra primary account
affected in column (b).
3. State the purpose and amount for each reservation or appropriation of retained earnings.
4. List first Account 439, Adjustments to Retained Earnings, reflecting adjustments to the opening balance of retained earnings. Follow by credit, then debit items, in that order.
5. Show dividends for each class and series of capital stock.
Statement of Retained Earnings
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Item
(a)
Contra Primary
Account Affected
(b)
Current Quarter
Year to Date
Balance
(c)
Previous Quarter
Year to Date
Balance
(d)
UNAPPROPRIATED RETAINED EARNINGS
Balance-Beginning of Period 572,281,364 623,531,170 1
Changes (Identify by prescribed retained earnings accounts) 2
Adjustments to Retained Earnings (Account 439) 3
TOTAL Credits to Retained Earnings (Account 439) (footnote details) 1,742,363 4
TOTAL Debits to Retained Earnings (Account 439) (footnote details) 5
Balance Transferred from Income (Acct 433 less Acct 418.1) 134,037,116 178,367,338 6
Appropriations of Retained Earnings (Account 436)( 5,320,848)( 3,725,552) 7
TOTAL Appropriations of Retained Earnings (Account 436) (footnote details) 8
Dividends Declared-Preferred Stock (Account 437) 9
TOTAL Dividends Declared-Preferred Stock (Account 437) (footnote details) 10
Dividends Declared-Common Stock (Account 438) 11
TOTAL Dividends Declared-Common Stock (Account 438) (footnote details) 98,046,075 102,772,642 12
Transfers from Account 216.1, Unappropriated Undistributed Subsidiary Earnings 18,837,250 10,579,862 13
Balance-End of Period (Total of lines 1, 4, 5, 6, 8, 10, 12, and 13) 628,852,018 709,705,728 14
APPROPRIATED RETAINED EARNINGS (Account 215) 15
TOTAL Appropriated Retained Earnings (Account 215) (footnote details) 37,452,971 41,178,525 16
APPROPRIATED RETAINED EARNINGS-AMORTIZATION RESERVE, FEDERAL (Account 17
TOTAL Appropriated Retained Earnings-Amortization Reserve, Federal (Account ( 5,320,848)( 3,725,552) 18
TOTAL Appropriated Retained Earnings (Accounts 215, 215.1) (Total of lines 32,132,123 37,452,973 19
TOTAL Retained Earnings (Accounts 215, 215.1, 216) (Total of lines 14 and 1 660,984,141 747,158,701 20
UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account 216.1) 21
Report only on an Annual Basis no Quarterly
Balance-Beginning of Year (Debit or Credit) 56,139( 16,389,107) 22
Equity in Earnings for Year (Credit) (Account 418.1) 2,392,004 13,582,269 23
(Less) Dividends Received (Debit) 10,000,000 10,000,000 24
Other Changes (Explain)( 8,837,250)( 579,863) 25
Balance-End of Year ( 16,389,107)( 13,386,701) 26
Page 118-119FERC FORM NO. 2 (REV 06-04)
(1) Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long-term debt; (c) Include commercial paper; and (d) Identify
separately such items as investments, fixed assets, intangibles, etc.
(2) Information about noncash investing and financing activities must be provided in the Notes to the Financial statements. Also provide a reconciliation
between "Cash and Cash Equivalents at End of Period" with related amounts on the Balance Sheet.
(3) Operating Activities - Other: Include gains and losses pertaining to operating activities only. Gains and losses pertaining to investing and financing
activities should be reported in those activities. Show in the Notes to the Financials the amounts of interest paid (net of amount capitalized) and income
taxes paid.
(4) Investing Activities: Include at Other (line 25) net cash outflow to acquire other companies. Provide a reconciliation of assets acquired with liabilities
assumed in the Notes to the Financial Statements. Do not include on this statement the dollar amount of leases capitalized per the USofA General
Instruction 20; instead provide a reconciliation of the dollar amount of leases capitalized with the plant cost.
Statement of Cash Flows
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Description (See Instructions for explanation of codes)
(a)
Current Year
to Date
Quarter/Year
Previous Year
to Date
Quarter/Year
1 Net Cash Flow from Operating Activities
2 136,429,120 191,949,607 Net Income (Line 78(c) on page 116)
3 Noncash Charges (Credits) to Income:
4 179,217,557 202,496,251Depreciation and Depletion
5 17,690,809( 41,704,853)Amortization of deferred power and gas costs, debt expense and exchange power
6 8,882,835 10,274,962 Deferred Income Taxes (Net)
7 ( 540,168) 718,518 Investment Tax Credit Adjustments (Net)
8 17,548,393( 9,860,829) Net (Increase) Decrease in Receivables
9 ( 4,880,128)( 6,255,653) Net (Increase) Decrease in Inventory
10 Net (Increase) Decrease in Allowances Inventory
11 1,753,920 1,823,471 Net Increase (Decrease) in Payables and Accrued Expenses
12 1,041,677( 6,065,721) Net (Increase) Decrease in Other Regulatory Assets
13 28,600,265( 5,135,361) Net Increase (Decrease) in Other Regulatory Liabilities
14 6,331,723 6,434,430 (Less) Allowance for Other Funds Used During Construction
15 2,392,004 13,582,269 (Less) Undistributed Earnings from Subsidiary Companies
16 ( 23,568,891) 71,865,969 Other (footnote details):
17 Net Cash Provided by (Used in) Operating Activities
18 353,451,662 390,089,662(Total of Lines 2 thru 16)
19
20 Cash Flows from Investment Activities:
21 Construction and Acquisition of Plant (including land):
22 ( 420,377,970)( 439,249,001)Gross Additions to Utility Plant (less nuclear fuel)
23 Gross Additions to Nuclear Fuel
24 Gross Additions to Common Utility Plant
25 Gross Additions to Nonutility Plant
26 (Less) Allowance for Other Funds Used During Construction
27 Other (footnote details):
28 ( 420,377,970)( 439,249,001) Cash Outflows for Plant (Total of lines 22 thru 27)
29
30 Acquisition of Other Noncurrent Assets (d)
31 559,980 882,641 Proceeds from Disposal of Noncurrent Assets (d)
32 Federal and state grant payments received
33 ( 19,855,879)( 3,693,898) Investments in and Advances to Assoc. and Subsidiary Companies
34 10,000,000 10,000,000 Contributions and Advances from Assoc. and Subsidiary Companies
35 Disposition of Investments in (and Advances to)
36 Associated and Subsidiary Companies
37 Cash paid for acquisition
38 Purchase of Investment Securities (a)
39 Proceeds from Sales of Investment Securities (a)
Page 120FERC FORM NO. 2 (REV 06-04)
Statement of Cash Flows (continued)
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Description (See Instructions for explanation of codes)
(a)
Current Year
to Date
Quarter/Year
Previous Year
to Date
Quarter/Year
40 Loans Made or Purchased
41 Collections on Loans
42 Restricted cash
43 Net (Increase) Decrease in Receivables
44 Net (Increase) Decrease in Inventory
45 Net (Increase) Decrease in Allowances Held for Speculation
46 Net Increase (Decrease) in Payables and Accrued Expenses
47 ( 2,002,301)( 1,750,738)Changes in other property and investments
48 Net Cash Provided by (Used in) Investing Activities
49 ( 431,676,170)( 433,810,996) (Total of lines 28 thru 47)
50
51 Cash Flows from Financing Activities:
52 Proceeds from Issuance of:
53 374,621,250 180,000,000Long-Term Debt (b)
54 Preferred Stock
55 1,206,734 64,572,145Common Stock
56 Other (footnote details):
57 85,000,000 Net Increase in Short-term Debt (c)
58 Other (footnote details):
59 460,827,984 244,572,145 Cash Provided by Outside Sources (Total of lines 53 thru 58)
60
61 Payments for Retirement of:
62 ( 274,902,917)( 90,000,000)Long-Term Debt (b)
63 Preferred Stock
64 Common Stock
65 ( 8,184,023)( 2,007,040)Other
66 ( 7,700,000) Net Decrease in Short-Term Debt (c)
67 Premium paid to repurchase long-term debt
68 Dividends on Preferred Stock
69 ( 98,046,075)( 102,772,642) Dividends on Common Stock
70 Net Cash Provided by (Used in) Financing Activities
71 79,694,969 42,092,463 (Total of lines 59 thru 69)
72
73 Net Increase (Decrease) in Cash and Cash Equivalents
74 1,470,461( 1,628,871) (Total of line 18, 49 and 71)
75
76 4,112,505 5,586,966 Cash and Cash Equivalents at Beginning of Period
77
78 5,586,966 3,958,095 Cash and Cash Equivalents at End of Period
Page 120aFERC FORM NO. 2 (REV 06-04)
Schedule Page: 120 Line No.: 16 Column: c
Power and natural gas deferrals 3,653,810
Change in special deposits (3,862,626)
Change in other current assets (1,546,634)
Non-cash stock compensation 5,366,952
Other non-current assets and liabilities (4,783,663)
Allowance for doubtful accounts 3,900,000
Preliminary survey and investigation costs 193,554
Cash paid for settlement of interest rate
swaps (32,174,169)
Cash received from settlement of interest rate
swaps 5,594,067
Gain on sale of property and equipment 13,250
Other 76,568
Schedule Page: 120 Line No.: 16 Column: b
Power and natural gas deferrals 4,692,134
Change in special deposits 63,973,598
Change in other current assets (5,417,123)
Non-cash stock compensation 11,352,863
Other non-current assets and liabilities 10,396,693
Allowance for doubtful accounts 400,000
Cash paid for settlement of interest rate
swaps (13,325,137)
Gain on sale of property and equipment (109,159)
Other (97,900)
Schedule Page: 120 Line No.: 65 Column: c
Minimum tax withholdings
for share based compensation (3,928,728)
Long-term debt issuance costs (4,255,295)
Schedule Page: 120 Line No.: 65 Column: b
Minimum tax withholdings
for share based compensation (891,513)
Long-term debt issuance costs (1,115,527)
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
FOOTNOTE DATA
FERC FORM NO. 2 (12-96)Page 552.1

This Page Intentionally Left Blank
1. Provide important disclosures regarding the Balance Sheet, Statement of Income for the Year, Statement of Retained Earnings for the Year,
and Statement of Cash Flow, or any account thereof. Classify the disclosures according to each financial statement, providing a subheading for
each statement except where a disclosure is applicable to more than one statement. The disclosures must be on the same subject matters and in
the same level of detail that would be required if the respondent issued general purpose financial statements to the public or shareholders.
2. Furnish details as to any significant contingent assets or liabilities existing at year end, and briefly explain any action initiated by the Internal
Revenue Service involving possible assessment of additional income taxes of material amount, or a claim for refund of income taxes of a material
amount initiated by the utility. Also, briefly explain any dividends in arrears on cumulative preferred stock.
3. Furnish details on the respondent's pension plans, post-retirement benefits other than pensions (PBOP) plans, and post-employment benefit
plans as required by instruction no. 1 and, in addition, disclose for each individual plan the current year's cash contributions. Furnish details on
the accounting for the plans and any changes in the method of accounting for them. Include details on the accounting for transition obligations or
assets, gains or losses, the amounts deferred and the expected recovery periods. Also, disclose any current year's plan or trust curtailments,
terminations, transfers, or reversions of assets. Entities that participate in multiemployer postretirement benefit plans (e.g. parent company
sponsored pension plans) disclose in addition to the required disclosures for the consolidated plan, (1) the amount of cost recognized in therespondent’s financial statements for each plan for the period presented, and (2) the basis for determining the respondent’s share of the total plan
costs.
4. Furnish details on the respondent’s asset retirement obligations (ARO) as required by instruction no. 1 and, in addition, disclose the amounts
recovered through rates to settle such obligations. Identify any mechanism or account in which recovered funds are being placed (i.e. trust funds,
insurance policies, surety bonds). Furnish details on the accounting for the asset retirement obligations and any changes in the measurement or
method of accounting for the obligations. Include details on the accounting for settlement of the obligations and any gains or losses expected or
incurred on the settlement.
5. Provide a list of all environmental credits received during the reporting period.
6. Provide a summary of revenues and expenses for each tracked cost and special surcharge.
7. Where Account 189, Unamortized Loss on Reacquired Debt, and 257, Unamortized Gain on Reacquired Debt, are not used, give an
explanation, providing the rate treatment given these item. See General Instruction 17 of the Uniform System of Accounts.
8. Explain concisely any retained earnings restrictions and state the amount of retained earnings affected by such restrictions.
9. Disclose details on any significant financial changes during the reporting year to the respondent or the respondent's consolidated group that
directly affect the respondent's gas pipeline operations, including: sales, transfers or mergers of affiliates, investments in new partnerships, sales
of gas pipeline facilities or the sale of ownership interests in the gas pipeline to limited partnerships, investments in related industries (i.e.,production, gathering), major pipeline investments, acquisitions by the parent corporation(s), and distributions of capital.
10. Explain concisely unsettled rate proceedings where a contingency exists such that the company may need to refund a material amount to the
utility's customers or that the utility may receive a material refund with respect to power or gas purchases. State for each year affected the gross
revenues or costs to which the contingency relates and the tax effects and explain the major factors that affect the rights of the utility to retain such
revenues or to recover amounts paid with respect to power and gas purchases.
11. Explain concisely significant amounts of any refunds made or received during the year resulting from settlement of any rate proceeding
affecting revenues received or costs incurred for power or gas purchases, and summarize the adjustments made to balance sheet, income, and
expense accounts.
12. Explain concisely only those significant changes in accounting methods made during the year which had an effect on net income, including
the basis of allocations and apportionments from those used in the preceding year. Also give the approximate dollar effect of such changes.
13. For the 3Q disclosures, respondent must provide in the notes sufficient disclosures so as to make the interim information not misleading.
Disclosures which would substantially duplicate the disclosures contained in the most recent FERC Annual Report may be omitted.
14. For the 3Q disclosures, the disclosures shall be provided where events subsequent to the end of the most recent year have occurred which
have a material effect on the respondent. Respondent must include in the notes significant changes since the most recently completed year in
such items as: accounting principles and practices; estimates inherent in the preparation of the financial statements; status of long-term contracts;capitalization including significant new borrowings or modifications of existing financing agreements; and changes resulting from business
combinations or dispositions. However were material contingencies exist, the disclosure of such matters shall be provided even though a
significant change since year end may not have occurred.
15. Finally, if the notes to the financial statements relating to the respondent appearing in the annual report to the stockholders are applicable
and furnish the data required by the above instructions, such notes may be included herein.
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
Avista Corp. (the Company) is primarily an electric and natural gas utility with certain other business ventures. Avista Corp. provides
electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho. Avista
Corp. also provides natural gas distribution service in parts of northeastern and southwestern Oregon. Avista Corp. has electric
generating facilities in Washington, Idaho, Oregon and Montana. Avista Corp. also supplies electricity to a small number of
customers in Montana, most of whom are employees who operate the Company's Noxon Rapids generating facility.
Alaska Electric and Resources Company (AERC) is a wholly-owned subsidiary of Avista Corp. The primary subsidiary of AERC is
Alaska Electric Light and Power (AEL&P), which comprises Avista Corp.’s regulated utility operations in Alaska.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.1
Avista Capital, a wholly owned non-regulated subsidiary of Avista Corp., is the parent company of all of the subsidiary companies
except AERC (and its subsidiaries).
Basis of Reporting
The financial statements include the assets, liabilities, revenues and expenses of the Company and have been prepared in accordance
with the accounting requirements of the Federal Energy Regulatory Commission (FERC) as set forth in its applicable Uniform System
of Accounts and published accounting releases, which is a comprehensive basis of accounting other than accounting principles
generally accepted in the United States of America (U.S. GAAP). As required by the FERC, the Company accounts for its investment
in majority-owned subsidiaries on the equity method rather than consolidating the assets, liabilities, revenues, and expenses of these
subsidiaries, as required by U.S. GAAP. The accompanying financial statements include the Company’s proportionate share of utility
plant and related operations resulting from its interests in jointly owned plants. In addition, under the requirements of the FERC, there
are differences from U.S. GAAP in the presentation of (1) current portion of long-term debt (2) assets and liabilities for cost of
removal of assets, (3) assets held for sale, (4) regulatory assets and liabilities, (5) deferred income taxes associated with accounts
other than utility property, plant and equipment, (6) comprehensive income, (7) unamortized debt issuance costs, (8) operating
revenues and resource costs associated with settled energy contracts that are “booked out” (not physically delivered), (9) non-service
portion of pension and other postretirement benefit costs and (10) leases.
Use of Estimates
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that
affect the amounts reported for assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include:
determining the market value of energy commodity derivative assets and liabilities,
pension and other postretirement benefit plan obligations,
contingent liabilities,
goodwill impairment testing for goodwill held at subsidiaries,
recoverability of regulatory assets, and
unbilled revenues.
Changes in these estimates and assumptions are considered reasonably possible and may have a material effect on the financial
statements and thus actual results could differ from the amounts reported and disclosed herein.
System of Accounts
The accounting records of the Company’s utility operations are maintained in accordance with the uniform system of accounts
prescribed by the FERC and adopted by the state regulatory commissions in Washington, Idaho, Montana and Oregon.
Regulation
The Company is subject to state regulation in Washington, Idaho, Montana, and Oregon. The Company is also subject to federal
regulation primarily by the FERC, as well as various other federal agencies with regulatory oversight of particular aspects of its
operations.
Depreciation
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.2
For utility operations, depreciation expense is estimated by a method of depreciation accounting utilizing composite rates for utility
plant. Such rates are designed to provide for retirements of properties at the expiration of their service lives. For utility operations, the
ratio of depreciation provisions to average depreciable property was as follows for the years ended December 31:
2019 2018
Avista Corp.
Ratio of depreciation to average depreciable property 3.28% 3.17%
The average service lives for the following broad categories of utility plant in service are (in years):
Avista Corp.
Electric thermal/other production 35
Hydroelectric production 81
Electric transmission 50
Electric distribution 38
Natural gas distribution property 45
Allowance for Funds Used During Construction (AFUDC)
AFUDC represents the cost of both the debt and equity funds used to finance utility plant additions during the construction period. As
prescribed by regulatory authorities, AFUDC is capitalized as a part of the cost of utility plant. The debt component of AFUDC is
credited against total interest expense in the Statements of Income in the line item “capitalized interest.” The equity component of
AFUDC is included in the Statement of Income in the line item “other expense (income)-net.” The Company is permitted, under
established regulatory rate practices, to recover the capitalized AFUDC, and a reasonable return thereon, through its inclusion in rate
base and the provision for depreciation after the related utility plant is placed in service. Cash inflow related to AFUDC does not
occur until the related utility plant is placed in service and included in rate base.
The WUTC and IPUC have authorized Avista Corp. to calculate AFUDC using its allowed rate of return. Beginning in 2018, to the
extent amounts calculated using this rate exceed the AFUDC amounts calculated using the FERC formula, Avista Corp. capitalizes
the excess as a regulatory asset. The regulatory asset associated with plant in service is amortized over the average useful life of
Avista Corp.' utility plant which is approximately 30 years. The regulatory asset associated with construction work in progress is not
amortized until the plant is placed in service. The OPUC does not allow the Company to capitalize AFUDC that exceeds the FERC
calculated rate.
The effective AFUDC rate was the following for the years ended December 31:
2019 2018
Avista Corp.
Effective state AFUDC rate 7.39% 7.43%
Reclassification of AFUDC to Comply with Required FERC Regulatory Reporting
During the third quarter of 2019, the FERC completed an audit of Avista Corp. that covered the period January 1, 2015 through
December 31, 2018. The FERC indicated that Avista’s method of deferring taxes on AFUDC Equity should be changed from
normalization to flow-through. Avista has historically normalized the AFUDC Equity book/tax timing difference by recognizing
deferred tax expense with the result of spreading the benefit over the book life of the asset. Under the flow-through method, Avista
will no longer recognize deferred tax expense on the AFUDC Equity timing difference and instead recognize a regulatory asset to be
reversed over the book life of the asset. The flow-through method does not impact revenue requirement. A regulatory asset was
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.3
recorded in 2018 for $1.7M to account for this change to the flow-through method on a prospective basis.
Additionally, Avista Corp.’s AFUDC rate, which is prescribed by state regulatory authorities, is different than the FERC approved
method for calculating AFUDC. The FERC indicated that the difference in rates should be recorded as a regulatory asset rather than
in utility plant. At the conclusion of the audit, the FERC required Avista Corp. to reclassify the excess AFUDC from Net utility plant
to Non-current regulatory assets for the period January 1, 2010 (the effective date of the Company’s current fixed transmission rates)
to the present. As a result, Avista Corp. reclassified approximately $33 million (net of accumulated depreciation) from Net utility
plant to Non-current regulatory assets as of December 31, 2019, which represents the cumulative adjustment for 2010 through 2017.
The Company recorded the difference in AFUDC rates for 2018 and 2019 as a regulatory asset in the respective periods incurred. The
Company did not adjust prior period Consolidated Balances Sheets since the FERC required the adjustment to be reflected on a
cumulative basis at the end of the audit and required the AFUDC calculation to be modified on a prospective basis. The Company
concluded that the differences were insignificant during each prior period and on a cumulative basis. The adjustment recorded during
2019 had no effect on net income or earnings per share.
Income Taxes
Deferred income tax assets represent future income tax deductions the Company expects to utilize in future tax returns to reduce
taxable income. Deferred income tax liabilities represent future taxable income the Company expects to recognize in future tax
returns. Deferred tax assets and liabilities arise when there are temporary differences resulting from differing treatment of items for
tax and accounting purposes. A deferred income tax asset or liability is determined based on the enacted tax rates that will be in effect
when the temporary differences between the financial statement carrying amounts and tax basis of existing assets and liabilities are
expected to be reported in the Company’s income tax returns. The deferred income tax expense for the period is equal to the net
change in the deferred income tax asset and liability accounts from the beginning to the end of the period. The effect on deferred
income taxes from a change in tax rates is recognized in income in the period that includes the enactment date unless a regulatory
order specifies deferral of the effect of the change in tax rates over a longer period of time. The Company establishes a valuation
allowance when it is more likely than not that all, or a portion, of a deferred tax asset will not be realized. Deferred income tax
liabilities and regulatory assets are established for income tax benefits flowed through to customers.
The Company's largest deferred income tax item is the difference between the book and tax basis of utility plant. This item results
from the temporary difference on depreciation expense. In early tax years, this item is recorded as a deferred income tax liability that
will eventually reverse and become subject to income tax in later tax years.
See Note 9 for discussion of the Tax Cuts and Jobs Act (TCJA) and its impacts on the Company's financial statements, as well as a
tabular presentation of all the Company's deferred tax assets and liabilities.
The Company did not incur any penalties on income tax positions in 2019 or 2018. The Company would recognize interest accrued
related to income tax positions as interest expense and any penalties incurred as other income deductions.
Stock-Based Compensation
The Company currently issues three types of stock-based compensation awards - restricted shares, market-based awards and
performance-based awards. Historically, these stock compensation awards have not been material to the Company's overall financial
results. Compensation cost relating to share-based payment transactions is recognized in the Company’s financial statements based on
the fair value of the equity or liability instruments issued and recorded over the requisite service period.
The Company recorded stock-based compensation expense (included in other operating expenses) and income tax benefits in the
Statements of Income of the following amounts for the years ended December 31 (dollars in thousands):
2019 2018
Stock-based compensation expense $ 11,353 $ 5,367
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.4
Income tax benefits 2,384 1,127
Excess tax benefits (expenses) on settled share-based employee payments (612) 990
Restricted share awards vest in equal thirds each year over 3 years and are payable in Avista Corp. common stock at the end of each
year if the service condition is met. In addition to the service condition, for restricted shares granted in 2017, the Company must meet
a return on equity target in order for the Chief Executive Officer's restricted shares to vest. Restricted stock is valued at the close of
market of the Company’s common stock on the grant date.
Total Shareholder Return (TSR) awards are market-based awards and Cumulative Earnings Per Share (CEPS) awards are
performance awards. Both types of awards vest after a period of 3 years and are payable in cash or Avista Corp. common stock at the
end of the three-year period. The method of settlement is at the discretion of the Company and historically the Company has settled
these awards through issuance of Avista Corp. common stock and intends to continue this practice. Both types of awards entitle the
recipients to dividend equivalent rights, are subject to forfeiture under certain circumstances, and are subject to meeting specific
market or performance conditions. Based on the level of attainment of the market or performance conditions, the amount of cash paid
or common stock issued will range from 0 to 200 percent of the initial awards granted. Dividend equivalent rights are accumulated
and paid out only on shares that eventually vest and have met the market and performance conditions.
For both the TSR awards and the CEPS awards, the Company accounts for them as equity awards and compensation cost for these
awards is recognized over the requisite service period, provided that the requisite service period is rendered. For TSR awards, if the
market condition is not met at the end of the three-year service period, there will be no change in the cumulative amount of
compensation cost recognized, since the awards are still considered vested even though the market metric was not met. For CEPS
awards, at the end of the three-year service period, if the internal performance metric of cumulative earnings per share is not met, all
compensation cost for these awards is reversed as these awards are not considered vested.
The fair value of each TSR award is estimated on the date of grant using a statistical model that incorporates the probability of
meeting the market targets based on historical returns relative to a peer group. The estimated fair value of the equity component of
CEPS awards was estimated on the date of grant as the share price of Avista Corp. common stock on the date of grant, less the net
present value of the estimated dividends over the three-year period.
The following table summarizes the number of grants, vested and unvested shares, earned shares (based on market metrics), and other
pertinent information related to the Company's stock compensation awards for the years ended December 31:
2019 2018
Restricted Shares
Shares granted during the year 50,061 40,661
Shares vested during the year (48,228) (53,352)
Unvested shares at end of year 93,351 91,998
Unrecognized compensation expense at end of year (in thousands)$ 2,054 $ 1,964
TSR Awards
TSR shares granted during the year 99,214 80,724
TSR shares vested during the year (106,858) (107,342)
TSR shares earned based on market metrics — —
Unvested TSR shares at end of year 178,035 187,172
Unrecognized compensation expense (in thousands) $ 3,377 $ 3,706
CEPS Awards
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.5
CEPS shares granted during the year 49,609 40,329
CEPS shares vested during the year (53,454) (53,699)
CEPS shares earned based on market metrics 106,908 30,102
Unvested CEPS shares at end of year 88,990 93,579
Unrecognized compensation expense (in thousands) $ 2,401 $ 1,260
Outstanding TSR and CEPS share awards include a dividend component that is paid in cash. This component of the share grants is
accounted for as a liability award. These liability awards are revalued on a quarterly basis taking into account the number of awards
outstanding, historical dividend rate, the change in the value of the Company’s common stock relative to an external benchmark (TSR
awards only) and the amount of CEPS earned to date compared to estimated CEPS over the performance period (CEPS awards only).
Over the life of these awards, the cumulative amount of compensation expense recognized will match the actual cash paid. As of
December 31, 2019 and 2018, the Company had recognized cumulative compensation expense and a liability of $0.9 million and $0.3
million, respectively, related to the dividend component on the outstanding and unvested share grants.
Cash and Cash Equivalents
For the purposes of the Statements of Cash Flows, the Company considers all temporary investments with a maturity of three months
or less when purchased to be cash equivalents.
Allowance for Doubtful Accounts
The Company maintains an allowance for doubtful accounts to provide for estimated and potential losses on accounts receivable. The
Company determines the allowance for utility and other customer accounts receivable based on historical write-offs as compared to
accounts receivable and operating revenues. Additionally, the Company establishes specific allowances for certain individual
accounts.
Utility Plant in Service
The cost of additions to utility plant in service, including AFUDC and replacements of units of property and improvements, is
capitalized. The cost of depreciable units of property retired plus the cost of removal less salvage is charged to accumulated
depreciation.
Asset Retirement Obligations (ARO)
The Company records the fair value of a liability for an ARO in the period in which it is incurred. When the liability is initially
recorded, the associated costs of the ARO are capitalized as part of the carrying amount of the related long-lived asset. The liability is
accreted to its present value each period and the related capitalized costs are depreciated over the useful life of the related asset. In
addition, if there are changes in the estimated timing or estimated costs of the AROs, adjustments are recorded during the period new
information becomes available as an increase or decrease to the liability, with the offset recorded to the related long-lived asset. Upon
retirement of the asset, the Company either settles the ARO for its recorded amount or recognizes a regulatory asset or liability for the
difference, which will be surcharged/refunded to customers through the ratemaking process. The Company records regulatory assets
and liabilities for the difference between asset retirement costs currently recovered in rates and AROs recorded since asset retirement
costs are recovered through rates charged to customers (see Note 7 for further discussion of the Company's AROs).
Goodwill
Goodwill arising from acquisitions represents the future economic benefit arising from other assets acquired in a business
combination that are not individually identified and separately recognized. The Company evaluates goodwill for impairment using a
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.6
fair value to carrying amount comparison (Step 1) for AEL&P. The Company completed its annual evaluation of goodwill for
potential impairment as of November 30, 2019 and determined that goodwill was not impaired at that time (carrying value was less
than the determined fair value). There were no events or circumstances that changed between November 30, 2019 and December 31,
2019 that would more likely than not reduce the fair values of the reporting units below their carrying amounts. While, the Company
does not have any goodwill amounts recorded on its FERC balance sheets, it does have goodwill at its subsidiaries and the amounts
for goodwill are reflected in the investment in subsidiary companies.
The following amounts were recorded as goodwill at the subsidiary companies and reflected through the investment in subsidiary
companies on the FERC balance sheets (dollars in thousands):
AEL&P Other
Accumulated
Impairment
Losses Total
Balance as of January 1, 2019 $52,426 $12,979 $(7,733)$57,672
Goodwill sold during the year — (12,979) 7,733 (5,246)
Balance as of December 31, 2019 $52,426 $—$—$52,426
Goodwill sold during the year relates to the sale of METALfx in April 2019. See Note 19 for further discussion. Accumulated
impairment losses were attributable to METALfx, which was a part of the other businesses.
Derivative Assets and Liabilities
Derivatives are recorded as either assets or liabilities on the Balance Sheets measured at estimated fair value.
The Washington Utilities and Transportation Commission (WUTC) and the Idaho Public Utilities Commission (IPUC) issued
accounting orders authorizing Avista Corp. to offset energy commodity derivative assets or liabilities with a regulatory asset or
liability. This accounting treatment is intended to defer the recognition of mark-to-market gains and losses on energy commodity
transactions until the period of delivery. Realized benefits and costs result in adjustments to retail rates through Purchased Gas
Adjustments (PGA), the Energy Recovery Mechanism (ERM) in Washington, the Power Cost Adjustment (PCA) mechanism in
Idaho, and periodic general rates cases. The resulting regulatory assets associated with energy commodity derivative instruments have
been concluded to be probable of recovery through future rates.
Substantially all forward contracts to purchase or sell power and natural gas are recorded as derivative assets or liabilities at estimated
fair value with an offsetting regulatory asset or liability. Contracts that are not considered derivatives are accounted for on the accrual
basis until they are settled or realized unless there is a decline in the fair value of the contract that is determined to be
other-than-temporary.
For interest rate swap derivatives, Avista Corp. records all mark-to-market gains and losses in each accounting period as assets and
liabilities, as well as offsetting regulatory assets and liabilities, such that there is no income statement impact. The interest rate swap
derivatives are risk management tools similar to energy commodity derivatives. Upon settlement of interest rate swap derivatives, the
regulatory asset or liability is amortized as a component of interest expense over the term of the associated debt. The Company
records an offset of interest rate swap derivative assets and liabilities with regulatory assets and liabilities, based on the prior practice
of the commissions to provide recovery through the ratemaking process.
The Company has multiple master netting agreements with a variety of entities that allow for cross-commodity netting of derivative
agreements with the same counterparty (i.e. power derivatives can be netted with natural gas derivatives). In addition, some master
netting agreements allow for the netting of commodity derivatives and interest rate swap derivatives for the same counterparty. The
Company does not have any agreements which allow for cross-affiliate netting among multiple affiliated legal entities. The Company
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.7
nets all derivative instruments when allowed by the agreement for presentation in the Balance Sheets.
Fair Value Measurements
Fair value represents the price that would be received when selling an asset or paid to transfer a liability (an exit price) in an orderly
transaction between market participants at the measurement date. Energy commodity derivative assets and liabilities, deferred
compensation assets, as well as derivatives related to interest rate swap derivatives and foreign currency exchange derivatives, are
reported at estimated fair value on the Balance Sheets. See Note 14 for the Company’s fair value disclosures.
Regulatory Deferred Charges and Credits
The Company prepares its financial statements in accordance with regulatory accounting practices because:
rates for regulated services are established by or subject to approval by independent third-party regulators,
the regulated rates are designed to recover the cost of providing the regulated services, and
in view of demand for the regulated services and the level of competition, it is reasonable to assume that rates can
be charged to and collected from customers at levels that will recover costs.
Regulatory accounting practices require that certain costs and/or obligations (such as incurred power and natural gas costs not
currently reflected in rates, but expected to be recovered or refunded in the future), are reflected as deferred charges or credits on the
Balance Sheets. These costs and/or obligations are not reflected in the Statements of Income until the period during which matching
revenues are recognized. The Company also has decoupling revenue deferrals. Decoupling revenue deferrals are recognized in the
Statements of Income during the period they occur (i.e. during the period of revenue shortfall or excess due to fluctuations in
customer usage), subject to certain limitations, and a regulatory asset/liability is established which will be surcharged or rebated to
customers in future periods. GAAP requires that for any alternative regulatory revenue program, like decoupling, the revenue must be
expected to be collected from customers within 24 months of the deferral to qualify for recognition in the current period Statement of
Income. Any amounts included in the Company's decoupling program that are not expected to be collected from customers within 24
months are not recorded in the financial statements until the period in which revenue recognition criteria are met. This could
ultimately result in decoupling revenue that arose during the current year being recognized in a future period.
If at some point in the future the Company determines that it no longer meets the criteria for continued application of regulatory
accounting practices for all or a portion of its regulated operations, the Company could be:
required to write off its regulatory assets, and
precluded from the future deferral of costs or decoupled revenues not recovered through rates at the time such
amounts are incurred, even if the Company expected to recover these amounts from customers in the future.
Unamortized Debt Expense
Unamortized debt expense includes debt issuance costs that are amortized over the life of the related debt.
Unamortized Gain/Loss on Reacquired Debt
For the Company’s Washington regulatory jurisdiction and for any debt repurchases beginning in 2007 in all jurisdictions, premiums
or discounts paid to repurchase debt are amortized over the remaining life of the original debt that was repurchased or, if new debt is
issued in connection with the repurchase, these amounts are amortized over the life of the new debt. In the Company’s other
regulatory jurisdictions, premiums or discounts paid to repurchase debt prior to 2007 are being amortized over the average remaining
maturity of outstanding debt when no new debt was issued in connection with the debt repurchase. The premiums and discounts costs
are recovered or returned to customers through retail rates as a component of interest expense.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.8
Appropriated Retained Earnings
In accordance with the hydroelectric licensing requirements of section 10(d) of the Federal Power Act (FPA), the Company maintains
an appropriated retained earnings account for any earnings in excess of the specified rate of return on the Company's investment in the
licenses for its various hydroelectric projects. Per section 10(d) of the FPA, the Company must maintain these excess earnings in an
appropriated retained earnings account until the termination of the licensing agreements or apply them to reduce the net investment in
the licenses of the hydroelectric projects at the discretion of the FERC. The Company calculates the earnings in excess of the
specified rate of return on an annual basis, usually during the second quarter.
The appropriated retained earnings amounts included in retained earnings were as follows as of December 31 (dollars in thousands):
2019 2018
Appropriated retained earnings $41,179 $37,453
Contingencies
The Company has unresolved regulatory, legal and tax issues which have inherently uncertain outcomes. The Company accrues a loss
contingency if it is probable that a liability has been incurred and the amount of the loss or impairment can be reasonably estimated.
The Company also discloses loss contingencies that do not meet these conditions for accrual, if there is a reasonable possibility that a
material loss may be incurred. As of December 31, 2019, the Company has not recorded any significant amounts related to unresolved
contingencies. See Note 16 for further discussion of the Company's commitments and contingencies.
Equity in Earnings (Losses) of Subsidiaries
The Company records all the earnings (losses) from its subsidiaries under the equity method. The Company had the following equity
in earnings (losses) of its subsidiaries for the years ended December 31 (dollars in thousands):

2019 2018
Avista Capital $6,404 $(5,660)
AERC 7,178 8,052
Total equity in earnings of subsidiary companies $13,582 $2,392
Subsequent Events
See footnote 21 - subsequent events for further details.
NOTE 2. NEW ACCOUNTING STANDARDS
Accounting Standards Update (ASU) No. 2016-02, "Leases (Topic 842)"
ASU No. 2018-01, "Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842"
ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements"
On January 1, 2019, the Company adopted ASU No. 2016-02, which outlines a model for entities to use in accounting for leases and
supersedes previous lease accounting guidance, as well as several practical expedients in ASU Nos. 2018-01 and 2018-11.
The Company adopted ASU No. 2016-02 utilizing a modified retrospective adoption method with the "package of three" and
hindsight practical expedients offered by the standard. The "package of three" provides for an entity to not reassess at adoption
whether any expired or existing contracts are deemed, for accounting purposes, to be or contain leases, the classification of any
expired or existing leases, and any initial direct costs for any existing leases. As a result, the Company did not reassess existing or
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.9
expired contracts under the new lease guidance, and it did not reassess the classification of any existing leases. The Company used the
benefit of hindsight in determining both term and impairments associated with any existing leases. Use of this practical expedient has
resulted in lease terms that best represent management's expectations with respect to use of the underlying asset but did not result in
recognition of any impairment.
The Company elected to adopt ASU No. 2018-01, which allows an entity to exclude from application of Topic 842 all easements
executed prior to January 1, 2019. In addition, the Company elected to adopt the "comparatives under 840" practical expedient offered
in ASU No. 2018-11, which allows an entity to apply the new lease standard at the adoption date, recognizing any necessary
cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption and presenting comparative periods
in the financial statements under Accounting Standards Codification (ASC) 840 (previous lease accounting guidance). Adoption of
the standard did not result in a cumulative effect adjustment within the Company's financial statements.
As allowed by ASU No. 2016-02, the Company elected not to apply the requirements of the standard to short-term leases, those leases
with an initial term of 12 months or less. These leases are not recorded on the balance sheet and are not material to the financial
statements.
Adoption of the standard impacted the Company's Balance Sheet through recognition of right-of-use (ROU) assets and lease liabilities
for the Company's operating leases. See Note 4 for further information on the Company's leases.
ASU No. 2018-02 “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from
Accumulated Other Comprehensive Income”
In February 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-02, which amended the guidance for
reporting comprehensive income. This ASU allows a reclassification from accumulated other comprehensive income to retained
earnings for stranded tax effects resulting from the enactment of the TCJA in December 2017. This ASU is effective for periods
beginning after December 15, 2018 and early adoption is permitted. Upon adoption, the requirements of this ASU must be applied
either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal
corporate income tax rate in the TCJA is recognized. The Company early adopted this standard effective January 1, 2018 and elected
to apply the guidance during the period of adoption rather than apply the standard retrospectively. As a result, the Company
reclassified $1.7 million in tax benefits from accumulated other comprehensive loss to retained earnings during the year ended
December 31, 2018.
For regulatory reporting, the reclassification to retained earnings is reflected in FERC account 439 – Adjustments to Retained
Earnings. Per FERC Guidelines, the usage of account 439 requires prior FERC approval. During 2018, the Company filed a request
with FERC for approval of the usage of account 439, which was approved by the FERC on December 21, 2018. The docket number
for Avista Corp.’s request was AC19-9-000.
ASU 2018-13 "Fair Value Measurement (Topic 820)"
In August 2018, the FASB issued ASU No. 2018-13, which amends the fair value measurement disclosure requirements of ASC 820.
The requirements of this ASU include additional disclosure regarding the range and weighted average used to develop significant
unobservable inputs for Level 3 fair value estimates and the elimination of certain other previously required disclosures, such as the
narrative description of the valuation process for Level 3 fair value measurements. This ASU is effective for periods beginning after
December 15, 2019 and early adoption is permitted. Entities have the option to early adopt the eliminated or modified disclosure
requirements and delay the adoption of all the new disclosure requirements until the effective date of the ASU. The Company is in the
process of evaluating this standard; however, it has determined that it will not early adopt any portion of this standard as of
December 31, 2019.
ASU No. 2018-14 "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)"
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.10
In August 2018, the FASB issued ASU No. 2018-14, which amends ASC 715 to add, remove and/or clarify certain disclosure
requirements related to defined benefit pension and other postretirement plans. The additional disclosure requirements are primarily
narrative discussion of significant changes in the benefit obligations and plan assets. The removed disclosures are primarily
information about accumulated other comprehensive income expected to be recognized over the next year and the effects of changes
associated with assumed health care costs. This ASU is effective for periods beginning after December 15, 2021 and early adoption is
permitted. The Company is in the process of evaluating this standard; however, it has determined that it will not early adopt this
standard as of December 31, 2019.
NOTE 3. REVENUE
ASC 606 defines the core principle of the revenue recognition model is that an entity should identify the various performance
obligations in a contract, allocate the transaction price among the performance obligations and recognize revenue when (or as) the
entity satisfies each performance obligation.
Utility Revenues
Revenue from Contracts with Customers
General
The majority of Avista Corp.’s revenue is from rate-regulated sales of electricity and natural gas to retail customers, which has two
performance obligations, (1) having service available for a specified period (typically a month at a time) and (2) the delivery of
energy to customers. The total energy price generally has a fixed component (basic charge) related to having service available and a
usage-based component, related to the delivery and consumption of energy. The commodity is sold and/or delivered to and consumed
by the customer simultaneously, and the provisions of the relevant utility commission authorization determine the charges the
Company may bill the customer. Given that all revenue recognition criteria are met upon the delivery of energy to customers, revenue
is recognized immediately.
In addition, the sale of electricity and natural gas is governed by the various state utility commissions, which set rates, charges, terms
and conditions of service, and prices. Collectively, these rates, charges, terms and conditions are included in a “tariff,” which governs
all aspects of the provision of regulated services. Tariffs are only permitted to be changed through a rate-setting process involving an
independent, third-party regulator empowered by statute to establish rates that bind customers. Thus, all regulated sales by the
Company are conducted subject to the regulator-approved tariff.
Tariff sales involve the current provision of commodity service (electricity and/or natural gas) to customers for a price that generally
has a basic charge and a usage-based component. Tariff rates also include certain pass-through costs to customers such as natural gas
costs, retail revenue credits and other miscellaneous regulatory items that do not impact net income, but can cause total revenue to
fluctuate significantly up or down compared to previous periods. The commodity is sold and/or delivered to and consumed by the
customer simultaneously, and the provisions of the relevant tariff determine the charges the Company may bill the customer, payment
due date, and other pertinent rights and obligations of both parties. Generally, tariff sales do not involve a written contract. Given that
all revenue recognition criteria are met upon the delivery of energy to customers, revenue is recognized immediately at that time.
Unbilled Revenue from Contracts with Customers
The determination of the volume of energy sales to individual customers is based on the reading of their meters, which occurs on a
systematic basis throughout the month (once per month for each individual customer). At the end of each calendar month, the amount
of energy delivered to customers since the date of the last meter reading is estimated and the corresponding unbilled revenue is
estimated and recorded. The Company's estimate of unbilled revenue is based on:
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.11
the number of customers,
current rates,
meter reading dates,
actual native load for electricity,
actual throughput for natural gas, and
electric line losses and natural gas system losses.
Any difference between actual and estimated revenue is automatically corrected in the following month when the actual meter reading
and customer billing occurs.
Accounts receivable includes unbilled energy revenues of the following amounts as of December 31 (dollars in thousands):
2019 2018
Unbilled accounts receivable $60,560 $ 64,463
Non-Derivative Wholesale Contracts
The Company has certain wholesale contracts which are not accounted for as derivatives that are within the scope of ASC 606 and
considered revenue from contracts with customers. Revenue is recognized as energy is delivered to the customer or the service is
available for specified period of time, consistent with the discussion of tariff sales above.
Alternative Revenue Programs (Decoupling)
ASC 606 retained existing GAAP associated with alternative revenue programs, which specified that alternative revenue programs are
contracts between an entity and a regulator of utilities, not a contract between an entity and a customer. GAAP requires that an entity
present revenue arising from alternative revenue programs separately from revenues arising from contracts with customers on the face
of the Statements of Income. The Company's decoupling mechanisms (also known as a FCA in Idaho) qualify as alternative revenue
programs. Decoupling revenue deferrals are recognized in the Statements of Income during the period they occur (i.e. during the
period of revenue shortfall or excess due to fluctuations in customer usage), subject to certain limitations, and a regulatory asset or
liability is established which will be surcharged or rebated to customers in future periods. GAAP requires that for any alternative
revenue program, like decoupling, the revenue must be expected to be collected from customers within 24 months of the deferral to
qualify for recognition in the current period Statement of Income. Any amounts included in the Company's decoupling program that
are not expected to be collected from customers within 24 months are not recorded in the financial statements until the period in
which revenue recognition criteria are met. The amounts expected to be collected from customers within 24 months represents an
estimate which must be made by the Company on an ongoing basis due to it being based on the volumes of electric and natural gas
sold to customers on a go-forward basis.
The Company records alternative program revenues under the gross method, which is to amortize the decoupling regulatory
asset/liability to the alternative revenue program line item on the Statement of Income as it is collected from or refunded to customers.
The cash passing between the Company and the customers is presented in revenue from contracts with customers since it is a portion
of the overall tariff paid by customers. This method results in a gross-up to both revenue from contracts with customers and revenue
from alternative revenue programs, but has a net zero impact on total revenue. Depending on whether the previous deferral balance
being amortized was a regulatory asset or regulatory liability, and depending on the size and direction of the current year deferral of
surcharges and/or rebates to customers, it could result in negative alternative revenue program revenue during the year.
Derivative Revenue
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.12
Most wholesale electric and natural gas transactions (including both physical and financial transactions), and the sale of fuel are
considered derivatives, which are scoped out of ASC 606. As such, these revenues are disclosed separately from revenue from
contracts with customers. Revenue is recognized for these items upon the settlement/expiration of the derivative contract. Derivative
revenue includes those transactions which are entered into and settled within the same month.
Other Utility Revenue
Other utility revenue includes rent, revenues from the lineman training school, sales of materials, late fees and other charges that do
not represent contracts with customers. Other utility revenue also includes the provision for earnings sharing and the deferral and
amortization of refunds to customers associated with the TCJA, enacted in December 2017. This revenue is scoped out of ASC 606,
as this revenue does not represent items where a customer is a party that has contracted with the Company to obtain goods or services
that are an output of the Company’s ordinary activities in exchange for consideration. As such, these revenues are presented
separately from revenue from contracts with customers.
Other Considerations for Utility Revenues
Contracts with Multiple Performance Obligations
In addition to the tariff sales described above, which are stand-alone energy sales, the Company has bundled arrangements which
contain multiple performance obligations including some combination of energy, capacity, energy reserves and RECs. Under these
arrangements, the total contract price is allocated to the various performance obligations and revenue is recognized as the obligations
are satisfied. Depending on the source of the revenue, it could either be included in revenue from contracts with customers or
derivative revenue.
Gross Versus Net Presentation
Utility-related taxes collected from customers (primarily state excise taxes and city utility taxes) are taxes that are imposed on Avista
Corp. as opposed to being imposed on its customers; therefore, Avista Corp. is the taxpayer and records these transactions on a gross
basis in revenue from contracts with customers and operating expense (taxes other than income taxes).
Utility-related taxes that were included in revenue from contracts with customers were as follows for the years ended December 31
(dollars in thousands):
2019 2018
Utility-related taxes $ 59,528 $ 58,730
Significant Judgments and Unsatisfied Performance Obligations
The vast majority of the Company's revenues are derived from the rate-regulated sale of electricity and natural gas that have two
performance obligations that are satisfied throughout the period and as energy is delivered to customers. In addition, the customers do
not pay for energy in advance of receiving it. As such, the Company does not have any significant unsatisfied performance
obligations or deferred revenues as of period-end associated with these revenues. Also, the only significant judgments involving
revenue recognition are estimates surrounding unbilled revenue and receivables from contracts with customers (discussed in detail
above) and estimates surrounding the amount of decoupling revenues which will be collected from customers within 24 months.
The Company has certain capacity arrangements, where the Company has a contractual obligation to provide either electric or natural
gas capacity to its customers for a fixed fee. Most of these arrangements are paid for in arrears by the customers and do not result in
deferred revenue and only result in receivables from the customers. The Company does have one capacity agreement where the
customer makes payments throughout the year and depending on the timing of the customer payments, it can result in an immaterial
amount of deferred revenue or a receivable from the customer. As of December 31, 2019, the Company estimates it had unsatisfied
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.13
capacity performance obligations of $5.9 million, which will be recognized as revenue in future periods as the capacity is provided to
the customers. These performance obligations are not reflected in the financial statements, as the Company has not received payment
for these services.
Disaggregation of Total Operating Revenue
The following table disaggregates total operating revenue by source for the years ended December 31 (dollars in thousands):
2019 2018
Avista Corp.
Revenue from contracts with customers $ 1,160,853 $ 1,147,935
Derivative revenues 246,355 277,048
Alternative revenue programs 9,614 908
Deferrals and amortizations for rate refunds to customers 1,093 (16,549)
Other utility revenues 10,184 7,456
Total Avista Corp.1,428,0993 1,416,798
Utility Revenue from Contracts with Customers by Type and Service
The following table disaggregates revenue from contracts with customers associated with the Company's electric operations for the
years ended December 31 (dollars in thousands):
2019 2018
ELECTRIC OPERATIONS
Revenue from contracts with customers
Residential $ 369,102 $ 368,753
Commercial and governmental 317,589 314,532
Industrial 114,530 109,846
Public street and highway lighting 7,448 7,539
Total retail revenue 808,669 800,670
Transmission 18,180 17,864
Other revenue from contracts with customers 26,969 27,364
Total revenue from contracts with customers $853,818 $845,898
The following table disaggregates revenue from contracts with customers associated with the Company's natural gas operations for
the years ended December 31 (dollars in thousands):
2019 2018
NATURAL GAS OPERATIONS
Revenue from contracts with customers
Residential $ 196,430 $ 194,340
Commercial 92,168 89,341
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.14
Industrial and interruptible 5,263 4,753
Total retail revenue 293,861 288,434
Transportation 8,674 9,103
Other revenue from contracts with customers 4,500 4,500
Total revenue from contracts with customers $307,035 $302,037
NOTE 4. LEASES
ASC 842, which outlines a model for entities to use in accounting for leases and supersedes previous lease accounting guidance,
became effective on January 1, 2019. The core principle of the model is that an entity should recognize the ROU assets and liabilities
that arise from leases on the balance sheet and depreciate or amortize the asset and liability over the term of the lease, as well as
provide disclosure to enable users of the financial statements to assess the amount, timing, and uncertainty of cash flows arising from
leases. For regulatory reporting, the FERC provided prescribed accounts for the ROU assets and lease liabilities, with the ROU assets
being included in utility plant (FERC account 101) and the lease liabilities being included in capital lease obligations (FERC account
227). These accounts are different than the accounts allowed for in GAAP reporting, which results in a FERC/GAAP difference.
Significant Judgments and Assumptions
The Company determines if an arrangement is a lease, as well as its classification, at its inception.
ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liabilities represent the Company's
obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the
commencement date of the agreement based on the present value of lease payments over the lease term. As most of the Company's
leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the
commencement date to determine the present value of lease payments. The implicit rate is used when it is readily determinable. The
operating lease ROU assets also include any lease payments made and exclude lease incentives, if any, that accrue to the benefit of the
lessee.
Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that
option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Any difference between lease
expense and cash paid for leased assets is recognized as a regulatory asset or regulatory liability.
Description of Leases
Operating Leases
The Company's most significant operating lease is with the State of Montana associated with submerged land around the Company's
hydroelectric facilities in the Clark Fork River basin, which expires in 2046. The terms of this lease are subject to renegotiation,
depending on the outcome of ongoing litigation between Montana and NorthWestern Energy. In addition, the State of Montana and
Avista Corp. are engaged in litigation regarding lease terms, including how much money, if any, the State of Montana will return to
Avista Corp. The Company is currently paying all lease payments to the State of Montana into an escrow account until the litigation is
resolved. As such, amounts recorded for this lease are uncertain and amounts may change in the future depending on the outcome of
the ongoing litigation. Any reduction in future lease payments or the return of previously paid amounts to Avista Corp. will be
included in the future ratemaking process.
In addition to the lease with the State of Montana, the Company also has other operating leases for land associated with its utility
operations, as well as communication sites which support network and radio communications within its service territory. The
Company's leases have remaining terms of 1 to 74 years. Most of the Company's leases include options to extend the lease term for
periods of 5 to 50 years. Options are exercised at the Company's discretion.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.15
Certain of the Company's lease agreements include rental payments which are periodically adjusted over the term of the agreement
based on the consumer price index. The Company's lease agreements do not include any material residual value guarantees or material
restrictive covenants.
Avista Corp. does not record leases with a term of 12 months or less in the Balance Sheet. Total short-term lease costs for the year
ended December 31, 2019 are immaterial.
Leases that Have Not Yet Commenced
In March 2019, the Company signed a PPA with Clearway Energy Group (Clearway) to purchase all of the power generated from the
Rattlesnake Flat Wind project in Adams County, Washington. The facility has a nameplate capacity of 144 MW and is expected to
generate approximately 50 aMW annually. During negotiations with Clearway, Avista Corp. was involved in the selection of the
preferred generation facility type. The PPA is a 20-year agreement with deliveries expected to begin in 2020. The PPA
provides Avista Corp. with additional renewable energy, capacity and environmental attributes. Avista Corp. expects to recover the
cost of the power purchased through its retail rates. This PPA is considered a lease under ASC 842; however, all of the payments are
variable payments based on whether power is generated from the facility. Since all the payments are variable, the Company will not
record a lease liability for the agreement, but the expense will be included in resource costs when it becomes operational in 2020.
The components of lease expense were as follows for the year ended December 31, 2019 (dollars in thousands):
2019
Operating lease cost:
Fixed lease cost $ 4,425
Variable lease cost 988
Total operating lease cost $5,413
Supplemental cash flow information related to leases was as follows for the year ended December 31, 2019 (dollars in thousands):
2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows:
Operating lease payments $ 4,375
Supplemental balance sheet information related to leases was as follows for December 31, 2019 (dollars in thousands):
December 31,
2019
Operating Leases
Operating lease ROU assets (Utility Plant)$69,746
Obligations under capital lease - current $ 4,128
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.16
Obligations under capital lease - noncurrent 65,565
Total operating lease liabilities $69,693
Weighted Average Remaining Lease Term
Operating leases 26.60 years
Weighted Average Discount Rate
Operating leases 3.82%
Maturities of lease liabilities (including principal and interest) were as follows as of December 31, 2019 (dollars in thousands):
Operating Leases
2020 $4,372
2021 4,375
2022 4,383
2023 4,399
2024 4,411
Thereafter 91,654
Total lease payments $113,594
Less: imputed interest (43,901)
Total $69,693
Future minimum lease payments (including principal and interest) under Topic 840 as of December 31, 2018 (dollars in thousands):
Operating Leases
2019 $4,995
2020 4,876
2021 4,859
2022 4,782
2023 4,780
Thereafter 102,389
Total lease payments $ 126,681
Less: imputed interest —
Total $126,681
NOTE 5. DERIVATIVES AND RISK MANAGEMENT
Energy Commodity Derivatives
Avista Corp. is exposed to market risks relating to changes in electricity and natural gas commodity prices and certain other fuel
prices. Market risk is, in general, the risk of fluctuation in the market price of the commodity being traded and is influenced primarily
by supply and demand. Market risk includes the fluctuation in the market price of associated derivative commodity instruments.
Avista Corp. utilizes derivative instruments, such as forwards, futures, swap derivatives and options in order to manage the various
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.17
risks relating to these commodity price exposures. Avista Corp. has an energy resources risk policy and control procedures to manage
these risks.
As part of Avista Corp.'s resource procurement and management operations in the electric business, the Company engages in an
ongoing process of resource optimization, which involves the economic selection from available energy resources to serve Avista
Corp.'s load obligations and the use of these resources to capture available economic value through wholesale market transactions.
These include sales and purchases of electric capacity and energy, fuel for electric generation, and derivative contracts related to
capacity, energy and fuel. Such transactions are part of the process of matching resources with load obligations and hedging a portion
of the related financial risks. These transactions range from terms of intra-hour up to multiple years.
As part of its resource procurement and management of its natural gas business, Avista Corp. makes continuing projections of its
natural gas loads and assesses available natural gas resources including natural gas storage availability. Natural gas resource planning
typically includes peak requirements, low and average monthly requirements and delivery constraints from natural gas supply
locations to Avista Corp.'s distribution system. However, daily variations in natural gas demand can be significantly different than
monthly demand projections. On the basis of these projections, Avista Corp. plans and executes a series of transactions to hedge a
portion of its projected natural gas requirements through forward market transactions and derivative instruments. These transactions
may extend as much as three natural gas operating years (November through October) into the future. Avista Corp. also leaves a
significant portion of its natural gas supply requirements unhedged for purchase in short-term and spot markets.
Avista Corp. plans for sufficient natural gas delivery capacity to serve its retail customers for a theoretical peak day event. Avista
Corp. generally has more pipeline and storage capacity than what is needed during periods other than a peak day. Avista Corp.
optimizes its natural gas resources by using market opportunities to generate economic value that helps mitigate fixed costs. Avista
Corp. also optimizes its natural gas storage capacity by purchasing and storing natural gas when prices are traditionally lower,
typically in the summer, and withdrawing during higher priced months, typically during the winter. However, if market conditions
and prices indicate that Avista Corp. should buy or sell natural gas during other times in the year, Avista Corp. engages in
optimization transactions to capture value in the marketplace. Natural gas optimization activities include, but are not limited to,
wholesale market sales of surplus natural gas supplies, purchases and sales of natural gas to optimize use of pipeline and storage
capacity, and participation in the transportation capacity release market.
The following table presents the underlying energy commodity derivative volumes as of December 31, 2019 that are expected to be
delivered in each respective year (in thousands of MWhs and mmBTUs):
Purchases Sales
Electric Derivatives Gas Derivatives Electric Derivatives Gas Derivatives
Year
Physical (1)
MWh
Financial (1)
MWh
Physical (1)
mmBTUs
Financial (1)
mmBTUs
Physical (1)
MWh
Financial (1)
MWh
Physical (1)
mmBTUs
Financial (1)
mmBTUs
2020 2 442 9,813 78,803 133 1,724 2,984 37,848
2021 — — 153 25,523 — 246 1,040 13,108
2022 — — 225 4,725 — — — 675
As of December 31, 2019, there are no expected deliveries of energy commodity derivatives after 2022.
The following table presents the underlying energy commodity derivative volumes as of December 31, 2018 that were expected to be
delivered in each respective year (in thousands of MWhs and mmBTUs):
Purchases Sales
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.18
Electric Derivatives Gas Derivatives Electric Derivatives Gas Derivatives
Year
Physical (1)
MWh
Financial (1)
MWh
Physical (1)
mmBTUs
Financial (1)
mmBTUs
Physical (1)
MWh
Financial (1)
MWh
Physical (1)
mmBTUs
Financial (1)
mmBTUs
2019 206 941 10,732 101,293 197 2,790 2,909 54,418
2020 — — 1,138 47,225 123 959 1,430 14,625
2021 — — — 9,670 — — 1,049 4,100
As of December 31, 2018, there were no expected deliveries of energy commodity derivatives after 2021.
(1) Physical transactions represent commodity transactions in which Avista Corp. will take or make delivery of either electricity or
natural gas; financial transactions represent derivative instruments with delivery of cash in the amount of the benefit or cost but
with no physical delivery of the commodity, such as futures, swap derivatives, options, or forward contracts.
The electric and natural gas derivative contracts above will be included in either power supply costs or natural gas supply costs during
the period they are delivered and will be included in the various deferral and recovery mechanisms (ERM, PCA, and PGAs), or in the
general rate case process, and are expected to be collected through retail rates from customers.
Foreign Currency Exchange Derivatives
A significant portion of Avista Corp.'s natural gas supply (including fuel for power generation) is obtained from Canadian sources.
Most of those transactions are executed in U.S. dollars, which avoids foreign currency risk. A portion of Avista Corp.’s short-term
natural gas transactions and long-term Canadian transportation contracts are committed based on Canadian currency prices and settled
within 60 days with U.S. dollars. Avista Corp. hedges a portion of the foreign currency risk by purchasing Canadian currency
exchange derivatives when such commodity transactions are initiated. The foreign currency exchange derivatives and the unhedged
foreign currency risk have not had a material effect on Avista Corp.’s financial condition, results of operations or cash flows and these
differences in cost related to currency fluctuations are included with natural gas supply costs for ratemaking.
The following table summarizes the foreign currency exchange derivatives that Avista Corp. has outstanding as of December 31
(dollars in thousands):
2019 2018
Number of contracts 20 31
Notional amount (in United States dollars) $ 5,932 $ 4,018
Notional amount (in Canadian dollars) 7,828 5,386
Interest Rate Swap Derivatives
Avista Corp. is affected by fluctuating interest rates related to a portion of its existing debt, and future borrowing requirements. Avista
Corp. hedges a portion of its interest rate risk with financial derivative instruments. These financial derivative instruments are
considered economic hedges against fluctuations in future cash flows associated with anticipated debt issuances.
The following table summarizes the unsettled interest rate swap derivatives that Avista Corp. has outstanding as of the balance sheet
date indicated below (dollars in thousands):
Balance Sheet Date Number of Contracts Notional Amount
Mandatory Cash Settlement
Date
December 31, 2019 7 70,000 2020
3 35,000 2021
10 110,000 2022
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.19
December 31, 2018 6 70,000 2019
6 60,000 2020
2 25,000 2021
7 80,000 2022
See Note 12 for discussion of the bond purchase agreement and the related settlement of interest rate swaps in connection with the
pricing of the bonds in September 2019.
The fair value of outstanding interest rate swap derivatives can vary significantly from period to period depending on the total
notional amount of swap derivatives outstanding and fluctuations in market interest rates compared to the interest rates fixed by the
swaps. Avista Corp. is required to make cash payments to settle the interest rate swap derivatives when the fixed rates are higher than
prevailing market rates at the date of settlement. Conversely, Avista Corp. receives cash to settle its interest rate swap derivatives
when prevailing market rates at the time of settlement exceed the fixed swap rates.
Summary of Outstanding Derivative Instruments
The amounts recorded on the Balance Sheet as of December 31, 2019 and December 31, 2018 reflect the offsetting of derivative
assets and liabilities where a legal right of offset exists.
The following table presents the fair values and locations of derivative instruments recorded on the Balance Sheet as of December 31,
2019 (in thousands):
Fair Value
Derivative and Balance Sheet Location
Gross Gross Collateral
Net Asset
(Liability)
on Balance
Sheet
Foreign currency exchange derivatives
Derivative instrument assets current $ 97 $ — $ — $ 97
Interest rate swap derivatives
Derivative instrument assets current 589 — — 589
Derivative instrument liabilities current 238 (9,379) 1,316 (7,825)
Long-term portion of derivative liabilities 725 (24,677) 5,454 (18,498)
Energy commodity derivatives
Derivative instrument assets current 416 (245) — 171
Long-term portion of derivative assets 6,369 (5,446) — 923
Derivative instrument liabilities current 34,760 (41,241) 3,378 (3,103)
Long-term portion of derivative liabilities 28 (1,215) —(1,187)
Total derivative instruments recorded on the balance sheet $43,222 $(82,203)$10,148 $(28,833)
The following table presents the fair values and locations of derivative instruments recorded on the Balance Sheet as of December 31,
2018 (in thousands):
Fair Value
Derivative and Balance Sheet Location Gross Gross Collateral
Net Asset
(Liability)
on Balance
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.20
Sheet
Foreign currency exchange derivatives
Derivative instrument liabilities current $ — $ (45) $ — $ (45)
Interest rate swap derivatives
Derivative instrument assets current 5,283 — — 5,283
Long-term portion of derivative assets 5,283 (440) — 4,843
Long-term portion of derivative liabilities — (7,391) 530 (6,861)
Energy commodity derivatives
Derivative instrument assets current 400 (130) — 270
Derivative instrument liabilities current 31,457 (73,155) 37,790 (3,908)
Long-term portion of derivative liabilities 4,426 (21,292) 13,427 (3,439)
Total derivative instruments recorded on the balance sheet $46,849 $(102,453)$51,747 $(3,857)
Exposure to Demands for Collateral
Avista Corp.'s derivative contracts often require collateral (in the form of cash or letters of credit) or other credit enhancements, or
reductions or terminations of a portion of the contract through cash settlement. In the event of a downgrade in Avista Corp.'s credit
ratings or changes in market prices, additional collateral may be required. In periods of price volatility, the level of exposure can
change significantly. As a result, sudden and significant demands may be made against Avista Corp.'s credit facilities and cash. Avista
Corp. actively monitors the exposure to possible collateral calls and takes steps to mitigate capital requirements.
The following table presents Avista Corp.'s collateral outstanding related to its derivative instruments as of December 31 (in
thousands):
2019 2018
Energy commodity derivatives
Cash collateral posted $ 7,812 $ 78,025
Letters of credit outstanding 17,400 6,500
Balance sheet offsetting (cash collateral against net derivative positions) 3,378 51,217
Interest rate swap derivatives
Cash collateral posted 6,770 530
Balance sheet offsetting (cash collateral against net derivative positions) 6,770 530
There were no letters of credit outstanding related to interest rate swap derivatives as of December 31, 2019 and December 31, 2018.
Certain of Avista Corp.’s derivative instruments contain provisions that require the Company to maintain an "investment grade" credit
rating from the major credit rating agencies. If Avista Corp.’s credit ratings were to fall below “investment grade,” it would be in
violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand
immediate and ongoing collateralization on derivative instruments in net liability positions.
The following table presents the aggregate fair value of all derivative instruments with credit-risk-related contingent features that are
in a liability position and the amount of additional collateral Avista Corp. could be required to post as of December 31 (in thousands):
2019 2018
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.21
Energy commodity derivatives
Liabilities with credit-risk-related contingent features $ 814 $ 2,193
Additional collateral to post 814 2,193
Interest rate swap derivatives
Liabilities with credit-risk-related contingent features 34,056 7,831
Additional collateral to post 26,912 6,579
NOTE 6. JOINTLY OWNED ELECTRIC FACILITIES
The Company has a 15 percent ownership interest in a twin-unit coal-fired generating facility, Colstrip, located in southeastern
Montana, and provides financing for its ownership interest in the project. The Company’s share of related fuel costs as well as
operating expenses for plant in service are included in the corresponding accounts in the Statements of Income. The Company’s share
of utility plant in service for Colstrip and accumulated depreciation (inclusive of the ARO assets and accumulated amortization) were
as follows as of December 31 (dollars in thousands):
2019 2018
Utility plant in service $ 387,860 $ 384,431
Accumulated depreciation (268,637) (261,997)
See Note 7 for further discussion of AROs.
While the obligations and liabilities with respect to Colstrip are to be shared among the co-owners on a pro-rata basis, many of the
environmental liabilities are joint and several under the law, so that if any co-owner failed to pay its share of such liability, the other
co-owners (or any one of them) could be required to pay the defaulting co-owner‘s share (or the entire liability).
NOTE 7. ASSET RETIREMENT OBLIGATIONS
The Company has recorded liabilities for future AROs to:
restore coal ash containment ponds and coal holding areas at Colstrip,
cap a landfill at the Kettle Falls Plant, and
remove plant and restore the land at the Coyote Springs 2 site at the termination of the land lease.
Due to an inability to estimate a range of settlement dates, the Company cannot estimate a liability for the:
removal and disposal of certain transmission and distribution assets, and
abandonment and decommissioning of certain hydroelectric generation and natural gas storage facilities.
In 2015, the EPA issued a final rule regarding CCRs. Colstrip, of which Avista Corp. is a 15 percent owner of units 3 & 4, produces
this byproduct. The CCR rule has been the subject of ongoing litigation. In August 2018, the D.C. Circuit struck down provisions of
the rule. The rule includes technical requirements for CCR landfills and surface impoundments. The Colstrip owners developed a
multi-year compliance plan to address the CCR requirements and existing state obligations.
The actual asset retirement costs related to the CCR rule requirements may vary substantially from the estimates used to record the
ARO due to the uncertainty and evolving nature of the compliance strategies that will be used and the availability of data used to
estimate costs, such as the quantity of coal ash present at certain sites and the volume of fill that will be needed to cap and cover
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.22
certain impoundments. The Company updates its estimates as new information becomes available. The Company expects to seek
recovery of any increased costs related to complying with the CCR rule through customer rates.
In addition to the above, under a 2018 Administrative Order on Consent and ongoing negotiations with the Montana Department of
Ecological Quality, the owners of Colstrip are required to provide financial assurance, primarily in the form of surety bonds, to secure
each owner's pro-rata share of various anticipated closure and remediation of the ash ponds and coal holding areas. The amount of
financial assurance required of each owner may, like the ARO, vary substantially due to the uncertainty and evolving nature of
anticipated closure and remediation activities, and as those activities are completed over time.
The following table documents the changes in the Company’s asset retirement obligation during the years ended December 31
(dollars in thousands):
2019 2018
Asset retirement obligation at beginning of year $ 18,266 $ 17,482
Liabilities incurred 2,699 —
Liabilities settled (1,503) (66)
Accretion expense 876 850
Asset retirement obligation at end of year $20,338 $18,266
NOTE 8. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS
The pension and other postretirement benefit plans described below only relate to Avista Corp.. AEL&P (not discussed below)
participates in a defined contribution multiemployer plan for its union workers and a defined contribution money purchase pension
plan for its nonunion workers. None of the subsidiary retirement plans, individually or in the aggregate, are significant to Avista Corp.
Avista Corp.
The Company has a defined benefit pension plan covering the majority of all regular full-time employees at Avista Corp. that were
hired prior to January 1, 2014. Individual benefits under this plan are based upon the employee’s years of service, date of hire and
average compensation as specified in the plan. Non-union employees hired on or after January 1, 2014 participate in a defined
contribution 401(k) plan in lieu of a defined benefit pension plan. 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. The Company contributed $22.0 million in cash to the
pension plan in 2019 and 2018. The Company expects to contribute $22.0 million in cash to the pension plan in 2020.
The Company also has a SERP that provides additional pension benefits to certain executive officers and certain key employees of the
Company. The SERP is intended to provide benefits to individuals whose benefits under the defined benefit pension plan are reduced
due to the application of Section 415 of the Internal Revenue Code of 1986 and the deferral of salary under deferred compensation
plans. The liability and expense for this plan are included as pension benefits in the tables included in this Note.
The Company expects that benefit payments under the pension plan and the SERP will total (dollars in thousands):
2020 2021 2022 2023 2024 Total 2025-2029
Expected benefit payments $ 39,647 $ 40,080 $ 40,652 $ 40,729 $ 41,767 $ 217,899
The expected long-term rate of return on plan assets is based on past performance and economic forecasts for the types of investments
held by the plan. In selecting a discount rate, the Company considers yield rates for highly rated corporate bond portfolios with
maturities similar to that of the expected term of pension benefits.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.23
The Company provides certain health care and life insurance benefits for eligible retired employees that were hired prior to January 1,
2014. The Company accrues the estimated cost of postretirement benefit obligations during the years that employees provide services.
The liability and expense of this plan are included as other postretirement benefits. Non-union employees hired on or after January 1,
2014, will have access to the retiree medical plan upon retirement; however, Avista Corp. will no longer provide a contribution
toward their medical premium.
The Company has a Health Reimbursement Arrangement (HRA) to provide employees with tax-advantaged funds to pay for
allowable medical expenses upon retirement. The amount earned by the employee is fixed on the retirement date based on the
employee’s years of service and the ending salary. The liability and expense of the HRA are included as other postretirement benefits.
The Company provides death benefits to beneficiaries of executive officers who die during their term of office or after retirement.
Under the plan, an executive officer’s designated beneficiary will receive a payment equal to twice the executive officer’s annual base
salary at the time of death (or if death occurs after retirement, a payment equal to twice the executive officer’s total annual pension
benefit). The liability and expense for this plan are included as other postretirement benefits.
The Company expects that benefit payments under other postretirement benefit plans will total (dollars in thousands):
2020 2021 2022 2023 2024 Total 2025-2029
Expected benefit payments $ 6,442 $ 6,782 $ 6,965 $ 7,088 $ 7,244 $ 38,305
The Company expects to contribute $6.7 million to other postretirement benefit plans in 2020, representing expected benefit payments
to be paid during the year excluding the Medicare Part D subsidy. The Company uses a December 31 measurement date for its
pension and other postretirement benefit plans.
The following table sets forth the pension and other postretirement benefit plan disclosures as of December 31, 2019 and 2018 and the
components of net periodic benefit costs for the years ended December 31, 2019 and 2018 (dollars in thousands):
Pension Benefits
Other Post-
retirement Benefits
2019 2018 2019 2018
Change in benefit obligation:
Benefit obligation as of beginning of year $ 671,629 $ 716,561 $ 134,053 $ 132,947
Service cost 19,755 21,614 3,006 3,188
Interest cost 28,417 26,096 5,598 4,831
Actuarial (gain)/loss 57,829 (48,641) 23,344 (610)
Benefits paid (35,248)(44,001)(6,705)(6,303)
Benefit obligation as of end of year $742,382 $671,629 $159,296 $134,053
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.24
Change in plan assets:
Fair value of plan assets as of beginning of year $ 544,051 $ 605,652 $ 36,852 $ 37,953
Actual return on plan assets 109,942 (40,954) 8,001 (1,101)
Employer contributions 22,000 22,000 — —
Benefits paid (33,930)(42,647)——
Fair value of plan assets as of end of year $642,063 $544,051 $44,853 $36,852
Funded status $ (100,319) $ (127,578) $ (114,443) $ (97,201)
Amounts recognized in the Balance Sheets:
Current liabilities $ (1,602) $ (1,477) $ (640) $ (580)
Non-current liabilities (98,717) (126,101) (113,803) (96,621)
Net amount recognized $(100,319)$(127,578)$(114,443)$(97,201)
Accumulated pension benefit obligation $644,004 $586,398 ——
Accumulated postretirement benefit obligation:
For retirees $ 72,816 $ 63,796
For fully eligible employees $ 34,545 $ 29,902
For other participants $ 51,935 $ 40,355
Included in accumulated other comprehensive loss (income) (net of tax):
Unrecognized prior service cost $ 2,105 $ 2,308 $ (4,400) $ (5,230)
Unrecognized net actuarial loss 114,368 138,516 63,101 52,441
Total 116,473 140,824 58,701 47,211
Less regulatory asset (107,395)(133,237)(57,520)(46,932)
Accumulated other comprehensive loss for unfunded benefit
obligation for pensions and other postretirement benefit
plans $9,078 $7,587 $1,181 $279
Pension Benefits
Other Post-
retirement Benefits
2019 2018 2019 2018
Weighted-average assumptions as of December 31:
Discount rate for benefit obligation 3.85% 4.31% 3.89% 4.32%
Discount rate for annual expense 4.31% 3.71% 4.32% 3.72%
Expected long-term return on plan assets 5.90% 5.50% 5.70% 5.20%
Rate of compensation increase 4.66% 4.67%
Medical cost trend pre-age 65 – initial 5.75% 6.00%
Medical cost trend pre-age 65 – ultimate 5.00% 5.00%
Ultimate medical cost trend year pre-age 65 2023 2023
Medical cost trend post-age 65 – initial 6.50% 6.25%
Medical cost trend post-age 65 – ultimate 5.00% 5.00%
Ultimate medical cost trend year post-age 65 2026 2024
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.25
Pension Benefits Other Post-retirement Benefits
2019 2018 2019 2018
Components of net periodic benefit cost:
Service cost (a) $ 19,755 $ 21,614 $ 3,006 $ 3,188
Interest cost 28,417 26,096 5,598 4,831
Expected return on plan assets (31,763) (33,018) (2,101) (1,973)
Amortization of prior service cost 257 257 (981) (1,089)
Net loss recognition 10,216 7,879 4,013 4,232
Net periodic benefit cost $26,882 $22,828 $9,535 $9,189
(a) Total service costs in the table above are recorded to the same accounts as labor expense. Labor and benefits expense is recorded
to various projects based on whether the work is a capital project or an operating expense. Approximately
40 percent of all labor and benefits is capitalized to utility property and 60 percent is expensed to utility other operating expenses.
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A
one-percentage-point increase in the assumed health care cost trend rate for each year would increase the accumulated postretirement
benefit obligation as of December 31, 2019 by $13.9 million and the service and interest cost by $0.8 million. A one-percentage-point
decrease in the assumed health care cost trend rate for each year would decrease the accumulated postretirement benefit obligation as
of December 31, 2019 by $10.7 million and the service and interest cost by $0.6 million.
Plan Assets
The Finance Committee of the Company’s Board of Directors approves investment policies, objectives and strategies that seek an
appropriate return for the pension plan and other postretirement benefit plans and reviews and approves changes to the investment and
funding policies.
The Company has contracted with investment consultants who are responsible for monitoring the individual investment managers.
The investment managers’ performance and related individual fund performance is periodically reviewed by an internal benefits
committee and by the Finance Committee to monitor compliance with investment policy objectives and strategies.
Pension plan assets are invested in mutual funds, trusts and partnerships that hold marketable debt and equity securities, real estate,
absolute return and commodity funds. In seeking to obtain a return that aligns with the funded status of the pension plan, the
investment consultant recommends allocation percentages by asset classes. These recommendations are reviewed by the internal
benefits committee, which then recommends their adoption by the Finance Committee. The Finance Committee has established target
investment allocation percentages by asset classes and also investment ranges for each asset class. The target investment allocation
percentages are typically the midpoint of the established range. The target investment allocation percentages by asset classes are
indicated in the table below:
2019 2018
Equity securities 35% 37%
Debt securities 49% 45%
Real estate 7% 8%
Absolute return 9% 10%
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.26
The fair value of pension plan assets invested in debt and equity securities was based primarily on fair value (market prices). The fair
value of investment securities traded on a national securities exchange is determined based on the reported last sales price; securities
traded in the over-the-counter market are valued at the last reported bid price. Investment securities for which market prices are not
readily available or for which market prices do not represent the value at the time of pricing, the investment manager estimates fair
value based upon other inputs (including valuations of securities that are comparable in coupon, rating, maturity and industry).
Pension plan and other postretirement plan assets whose fair values are measured using net asset value (NAV) are excluded from the
fair value hierarchy and are included as reconciling items in the tables below.
Investments in common/collective trust funds are presented at estimated fair value, which is determined based on the unit value of the
fund. Unit value is determined by an independent trustee, which sponsors the fund, by dividing the fund’s net assets by its units
outstanding at the valuation date. The Company's investments in common/collective trusts have redemption limitations that permit
quarterly redemptions following notice requirements of 45 to 60 days. The fair values of the closely held investments and partnership
interests are based upon the allocated share of the fair value of the underlying net assets as well as the allocated share of the
undistributed profits and losses, including realized and unrealized gains and losses. Most of the Company's investments in closely
held investments and partnership interests have redemption limitations that range from bi-monthly to semi-annually following
redemption notice requirements of 60 to 90 days. One investment in a partnership has a lock-up for redemption currently expiring in
2022 and is subject to extension.
The fair value of pension plan assets invested in real estate was determined by the investment manager based on three basic
approaches:
properties are externally appraised on an annual basis by independent appraisers, additional appraisals may be
performed as warranted by specific asset or market conditions,
property valuations are reviewed quarterly and adjusted as necessary, and
loans are reflected at fair value.
The fair value of pension plan assets was determined as of December 31, 2019 and 2018.
The following table discloses by level within the fair value hierarchy (see Note 14 for a description of the fair value hierarchy) of the
pension plan’s assets measured and reported as of December 31, 2019 at fair value (dollars in thousands):
Level 1 Level 2 Level 3 Total
Cash equivalents $ — $ 2,852 $ — $ 2,852
Fixed income securities:
U.S. government issues — 37,297 — 37,297
Corporate issues — 207,222 — 207,222
International issues — 35,836 — 35,836
Municipal issues — 23,539 — 23,539
Mutual funds:
U.S. equity securities 173,568 — — 173,568
International equity securities 46,416 — — 46,416
Absolute return (1) 16,720 — — 16,720
Plan assets measured at NAV (not subject to hierarchy disclosure)
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.27
Common/collective trusts:
Real estate — — — 31,473
Partnership/closely held investments:
Absolute return (1) — — — 59,260
Real estate ———7,880
Total $236,704 $306,746 $—$642,063
The following table discloses by level within the fair value hierarchy (see Note 14 for a description of the fair value hierarchy) of the
pension plan’s assets measured and reported as of December 31, 2018 at fair value (dollars in thousands):
Level 1 Level 2 Level 3 Total
Cash equivalents $—$7,061 $—$7,061
Fixed income securities:
U.S. government issues — 37,078 — 37,078
Corporate issues — 175,908 — 175,908
International issues — 31,561 — 31,561
Municipal issues — 16,170 — 16,170
Mutual funds:
U.S. equity securities 101,720 — — 101,720
International equity securities 33,141 — — 33,141
Absolute return (1) 2,249 — — 2,249
Plan assets measured at NAV (not subject to hierarchy disclosure)
Common/collective trusts:
Real estate — — — 43,303
International equity securities — — — 30,944
Partnership/closely held investments:
Absolute return (1) — — — 60,612
Real estate ———4,304
Total $137,110 $267,778 $—$544,051
(1) This category invests in multiple strategies to diversify risk and reduce volatility. The strategies include: (a) event driven,
relative value, convertible, and fixed income arbitrage, (b) distressed investments, (c) long/short equity and fixed income,
and (d) market neutral strategies.
The fair value of other postretirement plan assets invested in debt and equity securities was based primarily on market prices. The fair
value of investment securities traded on a national securities exchange is determined based on the last reported sales price; securities
traded in the over-the-counter market are valued at the last reported bid price. Investment securities for which market prices are not
readily available are fair-valued by the investment manager based upon other inputs (including valuations of securities that are
comparable in coupon, rating, maturity and industry). The target asset allocation was 60 percent equity securities and 40 percent debt
securities in both 2019 and 2018.
The fair value of other postretirement plan assets was determined as of December 31, 2019 and 2018.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.28
The following table discloses by level within the fair value hierarchy (see Note 14 for a description of the fair value hierarchy) of
other postretirement plan assets measured and reported as of December 31, 2019 at fair value (dollars in thousands):
Level 1 Level 2 Level 3 Total
Balanced index mutual funds (1) $ 44,853 $ — $ — $ 44,853
The following table discloses by level within the fair value hierarchy (see Note 14 for a description of the fair value hierarchy) of
other postretirement plan assets measured and reported as of December 31, 2018 at fair value (dollars in thousands):
Level 1 Level 2 Level 3 Total
Balanced index mutual funds (1)$36,852 $—$—$36,852
(1) The balanced index fund for 2019 and 2018 is a single mutual fund that includes a percentage of U.S. equity and fixed income
securities and International equity and fixed income securities.
401(k) Plans and Executive Deferral Plan
Avista Corp. has a salary deferral 401(k) plan that is a defined contribution plan and covers substantially all employees. Employees
can make contributions to their respective accounts in the plans on a pre-tax basis up to the maximum amount permitted by law. The
Company matches a portion of the salary deferred by each participant according to the schedule in the respective plan.
Employer matching contributions were as follows for the years ended December 31 (dollars in thousands):
2019 2018
Employer 401(k) matching contributions $ 10,362 $ 10,044
The Company has an Executive Deferral Plan. This plan allows executive officers and other key employees the opportunity to defer
until the earlier of their retirement, termination, disability or death, up to 75 percent of their base salary and/or up to 100 percent of
their incentive payments. Deferred compensation funds are held by the Company in a Rabbi Trust.
There were deferred compensation assets and corresponding deferred compensation liabilities on the Balance Sheets of the following
amounts as of December 31 (dollars in thousands):
2019 2018
Deferred compensation assets and liabilities $ 8,948 $ 8,400
NOTE 9. ACCOUNTING FOR INCOME TAXES
Federal Income Tax Law Changes
On December 22, 2017, the TCJA was signed into law. The legislation included substantial changes to the taxation of individuals as
well as U.S. businesses, multi-national enterprises, and other types of taxpayers. Highlights of provisions most relevant to Avista
Corp. included:
A permanent reduction in the statutory corporate tax rate from 35 percent to 21 percent, beginning with tax years after 2017;
Statutory provisions requiring that excess deferred taxes associated with public utility property be normalized using the
Average Rate Assumption Method (ARAM) or the Reverse South Georgia Method for determining the timing of the return
of excess deferred taxes to customers. Excess deferred taxes result from revaluing deferred tax assets and liabilities based on
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.29
the newly enacted tax rate instead of the previous tax rate, which, for most rate-regulated utilities like Avista Corp., results in
a net benefit to customers that will be deferred as a regulatory liability and passed through to customers over future periods;
Repeal of the corporate alternative minimum tax (AMT);
Bonus depreciation (expensing of capital investment on an accelerated basis) was removed as a deduction for property
predominantly used in certain rate-regulated businesses (like Avista Corp.), but is still allowed for the Company's
non-regulated businesses; and
NOL carryback deductions were eliminated, but carryforward deductions are allowed indefinitely with some annual
limitations versus the previous 20-year limitation.
As a result of the TCJA and its reduction of the corporate income tax rate from 35 percent to 21 percent (among many other changes
in the law), the Company recorded a regulatory liability associated with the revaluing of its deferred income tax assets and liabilities
to the new corporate tax rate. The total net amount of the regulatory liability for excess deferred income taxes associated with the
TCJA is $409.5 million as of December 31, 2019, compared to $429.3 million as of December 31, 2018, which reflects the amounts
to be refunded to customers through the regulatory process. The Avista Corp. amounts related to utility plant commenced being
returned to customers in 2018 and the Company expects they will be returned to customers over a period of approximately 36 years
using the ARAM. The return of the regulatory liability attributable to non-plant excess deferred taxes has begun through tariffs or
other regulatory mechanisms or proceedings.
Because most of the provisions of the TCJA were effective as of January 1, 2018 but customers' rates included a 35 percent corporate
tax rate built in from prior general rate cases, the Company began accruing for a refund to customers for the change in federal income
tax expense beginning January 1, 2018 forward. For Washington and Idaho, this accrual was recorded until all benefits prior to a
permanent rate change were properly captured through the deferral process. For Oregon, this accrual was recorded through 2019 with
new customer rates effective January 15, 2020. Refunds have begun to Washington, Idaho, and Oregon customers through tariffs or
other regulatory mechanisms or proceedings.
Excess accumulated deferred tax liabilities associated with the TCJA are classified as follows in the Balance Sheet as of December 31
(in thousands):
Protected Unprotected Total
Washington Idaho Oregon Washington Idaho Oregon Washington Idaho Oregon
As of December 31, 2019
Deferred tax assets 58,068 25,576 8,181 2,530 — 26 60,598 25,576 8,207
Regulatory liabilities 251,921 110,958 35,491 10,978 — 112 262,899 110,958 35,603
As of December 31, 2018
Deferred tax assets 59,201 26,657 8,820 2,725 1,465 71 61,926 28,122 8,891
Regulatory liabilities 256,837 115,647 38,265 11,824 6,409 306 268,661 122,056 38,571
The deferred tax assets in the table above represent the income tax gross-up of the excess deferred taxes (which, together with the
excess deferred tax amount, reflects the revenue amounts to be refunded to customers through the regulatory process).
Excess accumulated deferred income taxes were amortized in the Statement of Income as follows for the years ended December 31 (in
thousands):
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.30
Protected Unprotected Total
Washington Idaho Oregon Washington Idaho Oregon Washington Idaho Oregon
2019
Provision for deferred
income taxes (6,024) (2,653) (849) (651) (4,890) (149) (6,675) (7,543) (998)
2018
Provision for deferred
income taxes (5,334) (2,426) (496) (339) 290 — (5,673) (2,136) (496)
Positive amounts reflect increases to the provision for deferred income taxes and negative amounts reflect reductions to the provision
for deferred income taxes.
Deferred Income Taxes
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes and tax credit carryforwards.
The realization of deferred income tax assets is dependent upon the ability to generate taxable income in future periods. The Company
evaluated available evidence supporting the realization of its deferred income tax assets and determined it is more likely than not that
deferred income tax assets will be realized.
As of December 31, 2019, the Company had $22.3 million of state tax credit carryforwards. Of the total amount, the Company
believes that it is more likely than not that it will only be able to utilize $6.0 million of the state tax credits. As such, the Company has
recorded a valuation allowance of $16.3 million against the state tax credit carryforwards and reflected the net amount of $6.0 million
as an asset as of December 31, 2019. State tax credits expire from 2020 to 2033.
Status of Internal Revenue Service (IRS) and State Examinations
The Company and its eligible subsidiaries file consolidated federal income tax returns. The Company also files state income tax
returns in certain jurisdictions, including Idaho, Oregon, and Montana. Subsidiaries are charged or credited with the tax effects of
their operations on a stand-alone basis. All tax years after 2016 are open for an IRS tax examination.
The Idaho State Tax Commission is currently reviewing tax years 2014 through 2017. The statute of limitations for Montana and
Oregon to review 2015 and earlier tax years has expired.
The Company believes that any open tax years for federal or state income taxes will not result in adjustments that would be significant
to the financial statements.
NOTE 10. ENERGY PURCHASE CONTRACTS
Avista Corp. has contracts for the purchase of fuel for thermal generation, natural gas for resale and various agreements for the
purchase or exchange of electric energy with other entities. The remaining term of the contracts range from one month to twenty-five
years.
Total expenses for power purchased, natural gas purchased, fuel for generation and other fuel costs, which are included in utility
resource costs in the Statements of Income, were as follows for the years ended December 31 (dollars in thousands):
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.31
2019 2018
Utility power resources $ 376,769 $ 357,656
The following table details Avista Corp.’ future contractual commitments for power resources (including transmission contracts) and
natural gas resources (including transportation contracts) (dollars in thousands):
2020 2021 2022 2023 2024 Thereafter Total
Power resources $ 178,546 $ 180,417 $ 179,020 $ 179,640 $ 157,620 $ 1,172,072 $ 2,047,315
Natural gas resources 68,232 50,062 43,577 39,493 36,640 274,302 512,306
Total $246,778 $230,479 $222,597 $219,133 $194,260 $1,446,374 $2,559,621
These energy purchase contracts were entered into as part of Avista Corp.’ obligation to serve its retail electric and natural gas
customers’ energy requirements, including contracts entered into for resource optimization. As a result, these costs are recovered
either through base retail rates or adjustments to retail rates as part of the power and natural gas cost deferral and recovery
mechanisms.
The above future contractual commitments for power resources include fixed contractual amounts related to the Company's contracts
with certain Public Utility Districts (PUD) to purchase portions of the output of certain generating facilities. Although Avista Corp.
has no investment in the PUD generating facilities, the fixed contracts obligate Avista Corp. to pay certain minimum amounts whether
or not the facilities are operating. The cost of power obtained under the contracts, including payments made when a facility is not
operating, is included in utility resource costs in the Statements of Income. The contractual amounts included above consist of Avista
Corp.’ share of existing debt service cost and its proportionate share of the variable operating expenses of these projects. The
minimum amounts payable under these contracts are based in part on the proportionate share of the debt service requirements of the
PUD's revenue bonds for which the Company is indirectly responsible. The Company's total future debt service obligation associated
with the revenue bonds outstanding at December 31, 2019 (principal and interest) was $67.2 million.
In addition, Avista Corp. has operating agreements, settlements and other contractual obligations related to its generating facilities and
transmission and distribution services. The expenses associated with these agreements are reflected as other operating expenses in the
Statements of Income. The following table details future contractual commitments under these agreements (dollars in thousands):
2020 2021 2022 2023 2024 Thereafter Total
Contractual obligations $ 33,116 $ 34,081 $ 24,645 $ 25,190 $ 28,585 $ 191,873 $ 337,490
NOTE 11. NOTES PAYABLE
Avista Corp. has a committed line of credit with various financial institutions in the total amount of $400.0 million that expires in
April 2021. The committed line of credit is secured by non-transferable first mortgage bonds of Avista Corp. issued to the agent bank
that would only become due and payable in the event, and then only to the extent, that Avista Corp. defaults on its obligations under
the committed line of credit.
The committed line of credit agreement contains customary covenants and default provisions. The credit agreement has a covenant
which does not permit the ratio of “consolidated total debt” to “consolidated total capitalization” of Avista Corp. to be greater than 65
percent at any time. As of December 31, 2019, the Company was in compliance with this covenant.
Balances outstanding and interest rates of borrowings (excluding letters of credit) under the Company’s revolving committed lines of
credit were as follows as of December 31 (dollars in thousands):
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.32
2019 2018
Balance outstanding at end of period $182,300 $190,000
Letters of credit outstanding at end of period $ 21,473 $ 10,503
Average interest rate at end of period 2.64% 3.18%
As of December 31, 2019 and 2018, the borrowings outstanding under Avista Corp.'s committed line of credit were classified as
short-term borrowings on the Balance Sheet.
NOTE 12. BONDS
The following details long-term debt outstanding as of December 31 (dollars in thousands):
Maturity
Year Description
Interest
Rate 2019 2018
Avista Corp. Secured Long-Term Debt
2019 First Mortgage Bonds 5.45% — 90,000
2020 First Mortgage Bonds 3.89% 52,000 52,000
2022 First Mortgage Bonds 5.13% 250,000 250,000
2023 Secured Medium-Term Notes 7.18%-7.54% 13,500 13,500
2028 Secured Medium-Term Notes 6.37% 25,000 25,000
2032 Secured Pollution Control Bonds (1) (1) 66,700 66,700
2034 Secured Pollution Control Bonds (1) (1) 17,000 17,000
2035 First Mortgage Bonds 6.25% 150,000 150,000
2037 First Mortgage Bonds 5.70% 150,000 150,000
2040 First Mortgage Bonds 5.55% 35,000 35,000
2041 First Mortgage Bonds 4.45% 85,000 85,000
2044 First Mortgage Bonds 4.11% 60,000 60,000
2045 First Mortgage Bonds 4.37% 100,000 100,000
2047 First Mortgage Bonds 4.23% 80,000 80,000
2047 First Mortgage Bonds 3.91% 90,000 90,000
2048 First Mortgage Bonds 4.35% 375,000 375,000
2049 First Mortgage Bonds (2) 3.43% 180,000 —
2051 First Mortgage Bonds 3.54%175,000 175,000
Total Avista Corp. secured bonds 1,904,200 1,814,200
Secured Pollution Control Bonds held by Avista
Corporation (1)(83,700) (83,700)
Total long-term debt $1,820,500 $1,730,500
(1) In December 2010, $66.7 million and $17.0 million of the City of Forsyth, Montana Pollution Control Revenue Refunding
Bonds (Avista Corporation Colstrip Project) due in 2032 and 2034, respectively, which had been held by Avista Corp. since
2008 and 2009, respectively, were refunded by new variable rate bond issues (Series 2010A and Series 2010B). The new
bonds were not offered to the public and were purchased by Avista Corp. due to market conditions. The Company expects
that at a later date, subject to market conditions, these bonds may be remarketed to unaffiliated investors. So long as Avista
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.33
Corp. is the holder of these bonds, the bonds will not be reflected as an asset or a liability on Avista Corp.'s Balance Sheets.
(2) In November 2019, the Company issued and sold $180.0 million of 3.43 percent first mortgage bonds due in 2049 pursuant
to a bond purchase agreement with institutional investors in the private placement market. The total net proceeds from the
sale of the bonds were used to repay maturing long-term debt of $90.0 million, repay a portion of the outstanding balance
under Avista Corp.'s $400.0 million committed line of credit and for other general corporate purposes. In connection with the
issuance and sale of the first mortgage bonds, the Company cash settled six interest rate swap derivatives (notional aggregate
amount of $70.0 million) and paid a net amount of $13.3 million. See note 5 for a discussion of interest rate swap
derivatives.
The following table details future long-term debt maturities including long-term debt to affiliated trusts (see Note 13) (dollars in
thousands):
2020 2021 2022 2023 2024 Thereafter Total
Debt maturities $ 52,000 $ — $ 250,000 $ 13,500 $ 15,000 $ 1,541,547 $ 1,872,047
Substantially all of Avista Corp.'s owned properties are subject to the lien of its mortgage indenture. Under the Mortgage and Deed of
Trust (Mortgage) securing its first mortgage bonds (including secured medium-term notes), Avista Corp. may each issue additional
first mortgage bonds under its mortgage in an aggregate principal amount equal to the sum of:
66-2/3 percent of the cost or fair value (whichever is lower) of property additions which have not previously been made the
basis of any application under the Mortgage, or
an equal principal amount of retired first mortgage bonds which have not previously been made the basis of any application
under the Mortgage, or
deposit of cash.
Avista Corp. may not issue any additional first mortgage bonds (with certain exceptions in the case of bonds issued on the basis of
retired bonds) unless it has “net earnings” (as defined in the Mortgage) for any period of 12 consecutive calendar months out of the
preceding 18 calendar months that were at least twice the annual interest requirements on all mortgage securities at the time
outstanding, including the first mortgage bonds to be issued, and on all indebtedness of prior rank. As of December 31, 2019,
property additions and retired bonds would have allowed, and the net earnings test would not have prohibited, the issuance of $1.5
billion in an aggregate principal amount of additional first mortgage bonds at Avista Corp.
NOTE 13. ADVANCES FROM ASSOCIATED COMPANIES
In 1997, the Company issued Floating Rate Junior Subordinated Deferrable Interest Debentures, Series B, with a principal amount of
$51.5 million to Avista Capital II, an affiliated business trust formed by the Company. Avista Capital II issued $50.0 million of
Preferred Trust Securities with a floating distribution rate of LIBOR plus 0.875 percent, calculated and reset quarterly.
The distribution rates paid were as follows during the years ended December 31:
2019 2018
Low distribution rate 2.79% 2.36%
High distribution rate 3.61% 3.61%
Distribution rate at the end of the year 2.79% 3.61%
Concurrent with the issuance of the Preferred Trust Securities, Avista Capital II issued $1.5 million of Common Trust Securities to
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.34
the Company. These Preferred Trust Securities may be redeemed at the option of Avista Capital II at any time and mature on June 1,
2037. In December 2000, the Company purchased $10.0 million of these Preferred Trust Securities.
The Company owns 100 percent of Avista Capital II and has solely and unconditionally guaranteed the payment of distributions on,
and redemption price and liquidation amount for, the Preferred Trust Securities to the extent that Avista Capital II has funds available
for such payments from the respective debt securities. Upon maturity or prior redemption of such debt securities, the Preferred Trust
Securities will be mandatorily redeemed.
NOTE 14. FAIR VALUE
The carrying values of cash and cash equivalents, special deposits, accounts and notes receivable, accounts payable and notes payable
are reasonable estimates of their fair values. Bonds and advances from associated companies are reported at carrying value on the
Balance Sheets.
The fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to fair values derived from
unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy are defined as follows:
Level 1 – Quoted prices are available in active markets for identical assets or liabilities. Active markets are those in which
transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, but which are either directly or
indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other
valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted
forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying
instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace
throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which
transactions are executed in the marketplace.
Level 3 – Pricing inputs include significant inputs that are generally unobservable from objective sources. These inputs may be
used with internally developed methodologies that result in management’s best estimate of fair value.
Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value
measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment,
and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The
determination of the fair values incorporates various factors that not only include the credit standing of the counterparties involved
and the impact of credit enhancements (such as cash deposits and letters of credit), but also the impact of Avista Corp.’s
nonperformance risk on its liabilities.
The following table sets forth the carrying value and estimated fair value of the Company’s financial instruments not reported at
estimated fair value on the Balance Sheets as of December 31 (dollars in thousands):
2019 2018
Carrying
Value
Estimated
Fair Value
Carrying
Value
Estimated
Fair Value
Long-term debt (Level 2)$963,500 $1,124,649 $1,053,500 $1,142,292
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.35
Long-term debt (Level 3) 857,000 946,674 677,000 645,523
Long-term debt to affiliated trusts (Level 3) 51,547 41,238 51,547 38,145
These estimates of fair value of long-term debt and long-term debt to affiliated trusts were primarily based on available market
information, which generally consists of estimated market prices from third party brokers for debt with similar risk and terms. The
price ranges obtained from the third party brokers consisted of par values of 80.00 to 134.11, where a par value of 100.00 represents
the carrying value recorded on the Balance Sheets. Level 2 long-term debt represents publicly issued bonds with quoted market
prices; however, due to their limited trading activity, they are classified as Level 2 because brokers must generate quotes and make
estimates using comparable debt with similar risk and terms if there is no trading activity near a period end. Level 3 long-term debt
consists of private placement bonds and debt to affiliated trusts, which typically have no secondary trading activity. Fair values in
Level 3 are estimated based on market prices from third party brokers using secondary market quotes for debt with similar risk and
terms to generate quotes for Avista Corp. bonds.
The following table discloses by level within the fair value hierarchy the Company’s assets and liabilities measured and reported on
the Balance Sheets as of December 31, 2019 at fair value on a recurring basis (dollars in thousands):
Level 1 Level 2 Level 3
Counterparty
and Cash
Collateral
Netting (1) Total
December 31, 2019
Assets:
Energy commodity derivatives $ — $ 41,546 $ — $ (40,452) $ 1,094
Level 3 energy commodity derivatives:
Natural gas exchange agreements — — 27 (27) —
Foreign currency exchange derivatives — 97 — — 97
Interest rate swap derivatives — 1,552 — (963) 589
Deferred compensation assets:
Mutual Funds:
Fixed income securities 2,232 — — — 2,232
Equity securities 6,271 ———6,271
Total $8,503 $43,195 $27 $(41,442)$10,283
Liabilities:
Energy commodity derivatives $ — $ 45,144 $ — $ (43,830) $ 1,314
Level 3 energy commodity derivatives:
Natural gas exchange agreement — — 3,003 (27) 2,976
Interest rate swap derivatives — 34,056 — (7,733) 26,323
Total $—$79,200 $3,003 $(51,590)$30,613
The following table discloses by level within the fair value hierarchy the Company’s assets and liabilities measured and reported on
the Balance Sheets as of December 31, 2018 at fair value on a recurring basis (dollars in thousands):
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.36
Level 1 Level 2 Level 3
Counterparty
and Cash
Collateral
Netting (1)Total
December 31, 2018
Assets:
Energy commodity derivatives $ — $ 36,252 $ — $ (35,982) $ 270
Level 3 energy commodity derivatives:
Natural gas exchange agreement — — 31 (31) —
Interest rate swap derivatives — 10,566 — (440) 10,126
Deferred compensation assets:
Mutual Funds:
Fixed income securities 1,745 — — — 1,745
Equity securities 6,157 ———6,157
Total $7,902 $46,818 $31 $(36,453)$18,298
Liabilities:
Energy commodity derivatives $ — $ 89,283 $ — $ (87,199) $ 2,084
Level 3 energy commodity derivatives:
Natural gas exchange agreement — — 2,805 (31) 2,774
Power exchange agreement — — 2,488 — 2,488
Power option agreement — — 1 — 1
Foreign currency exchange derivatives — 45 — — 45
Interest rate swap derivatives —7,831 —(970)6,861
Total $—$97,159 $5,294 $(88,200)$14,253
(1) The Company is permitted to net derivative assets and derivative liabilities with the same counterparty when a legally enforceable
master netting agreement exists. In addition, the Company nets derivative assets and derivative liabilities against any payables
and receivables for cash collateral held or placed with these same counterparties.
The difference between the amount of derivative assets and liabilities disclosed in respective levels in the table above and the amount
of derivative assets and liabilities disclosed on the Balance Sheets is due to netting arrangements with certain counterparties. See Note
5 for additional discussion of derivative netting.
To establish fair value for energy commodity derivatives, the Company uses quoted market prices and forward price curves to
estimate the fair value of energy commodity derivative instruments included in Level 2. In particular, electric derivative valuations are
performed using market quotes, adjusted for periods in between quotable periods. Natural gas derivative valuations are estimated
using New York Mercantile Exchange pricing for similar instruments, adjusted for basin differences, using market quotes. Where
observable inputs are available for substantially the full term of the contract, the derivative asset or liability is included in Level 2.
To establish fair values for interest rate swap derivatives, the Company uses forward market curves for interest rates for the term of
the swaps and discounts the cash flows back to present value using an appropriate discount rate. The discount rate is calculated by
third party brokers according to the terms of the swap derivatives and evaluated by the Company for reasonableness, with
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.37
consideration given to the potential non-performance risk by the Company. Future cash flows of the interest rate swap derivatives are
equal to the fixed interest rate in the swap compared to the floating market interest rate multiplied by the notional amount for each
period.
To establish fair value for foreign currency derivatives, the Company uses forward market curves for Canadian dollars against the US
dollar and multiplies the difference between the locked-in price and the market price by the notional amount of the derivative.
Forward foreign currency market curves are provided by third party brokers. The Company's credit spread is factored into the
locked-in price of the foreign exchange contracts.
Deferred compensation assets and liabilities represent funds held by the Company in a Rabbi Trust for an executive deferral plan.
These funds consist of actively traded equity and bond funds with quoted prices in active markets. The balance disclosed in the table
above excludes cash and cash equivalents of $0.4 million as of December 31, 2019 and $0.5 million as of December 31, 2018.
Level 3 Fair Value
Under the power exchange agreement, which expired on June 30, 2019, the Company purchased power at a price that was based on
the average operating and maintenance (O&M) charges from three surrogate nuclear power plants around the country. To estimate the
fair value of this agreement the Company estimated the difference between the purchase price based on the future O&M charges and
forward prices for energy. The Company compared the Level 2 brokered quotes and forward price curves described above to an
internally developed forward price which was based on the average O&M charges from the three surrogate nuclear power plants for
the current year. The Company estimated the volumes of the transactions that would take place in the future based on historical
average transaction volumes per delivery year (November to April). Significant increases or decreases in any of these inputs in
isolation would result in a significantly higher or lower fair value measurement.
For the natural gas commodity exchange agreement, the Company uses the same Level 2 brokered quotes described above; however,
the Company also estimates the purchase and sales volumes (within contractual limits) as well as the timing of those transactions.
Changing the timing of volume estimates changes the timing of purchases and sales, impacting which brokered quote is used. Because
the brokered quotes can vary significantly from period to period, the unobservable estimates of the timing and volume of transactions
can have a significant impact on the calculated fair value. The Company currently estimates volumes and timing of transactions based
on a most likely scenario using historical data. Historically, the timing and volume of transactions have not been highly correlated
with market prices and market volatility.
The following table presents the quantitative information which was used to estimate the fair values of the Level 3 assets and
liabilities above as of December 31, 2019 (dollars in thousands):
Fair Value
(Net) at
December 31,
2019
Valuation
Technique Unobservable Input Range
Natural gas exchange (2,976) Internally derived Forward purchase prices $1.49 - $2.38/mmBTU
agreement weighted-average Forward sales prices $1.60 - $3.80/mmBTU
cost of gas Purchase volumes 50,000 - 310,000 mmBTUs
Sales volumes 60,000 - 310,000 mmBTUs
The valuation methods, significant inputs and resulting fair values described above were developed by the Company's management
and are reviewed on at least a quarterly basis to ensure they provide a reasonable estimate of fair value each reporting period.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.38
The following table presents activity for energy commodity derivative assets (liabilities) measured at fair value using significant
unobservable inputs (Level 3) for the years ended December 31 (dollars in thousands):
Natural Gas
Exchange
Agreement
Power
Exchange
Agreement Total
Year ended December 31, 2019:
Balance as of January 1, 2019 $ (2,774) $ (2,488) $ (5,262)
Total gains or (losses) (realized/unrealized):
Included in regulatory assets/liabilities (1) 8,175 435 8,610
Settlements (8,377) 2,053 (6,324)
Ending balance as of December 31, 2019 (2)$(2,976)$—$(2,976)
Year ended December 31, 2018:
Balance as of January 1, 2018 $ (3,164) $ (13,245) $ (16,409)
Total gains or (losses) (realized/unrealized):
Included in regulatory assets/liabilities (1) 326 5,027 5,353
Settlements 64 5,730 5,794
Ending balance as of December 31, 2018 (2)$(2,774)$(2,488)$(5,262)
(1) All gains and losses are included in other regulatory assets and liabilities. There were no gains and losses included in either net
income or other comprehensive income during any of the periods presented in the table above.
(2) There were no purchases, issuances or transfers from other categories of any derivatives instruments during the periods presented
in the table above.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.39
NOTE 15. COMMON STOCK
The payment of dividends on common stock could be limited by:
certain covenants applicable to preferred stock (when outstanding) contained in the Company’s Restated Articles of
Incorporation, as amended (currently there are no preferred shares outstanding),
certain covenants applicable to the Company's outstanding long-term debt and committed line of credit agreements,
the hydroelectric licensing requirements of section 10(d) of the FPA (see Note 1), and
certain requirements under the OPUC approval of the AERC acquisition in 2014. The OPUC's AERC acquisition
order requires Avista Corp. to maintain a capital structure of no less than 35 percent common equity (inclusive of
short-term debt). This limitation may be revised upon request by the Company with approval from the OPUC.
The requirements of the OPUC approval of the AERC acquisition are the most restrictive. Under the OPUC restriction, the amount
available for dividends at December 31, 2019 was limited to $293.9 million.
The Company has 10 million authorized shares of preferred stock. The Company did not have any preferred stock outstanding as of
December 31, 2019 and 2018.
Equity Issuances
The Company issued equity in 2019 for total net proceeds of $64.6 million. Most of these issuances came through the Company's four
separate sales agency agreements under which the sales agents may offer and sell new shares of common stock from time to time.
These agreements provide for the offering of a maximum of 4.6 million shares, of which approximately 3.2 million remain unissued
as of December 31, 2019. In 2019, 1.4 million shares were issued under these agreements resulting in total net proceeds of $63.6
million. Subject to the satisfaction of customary conditions (including any required regulatory approvals), the Company has the right
to increase the maximum number of shares that may be offered under these agreements. These agreements expire on February 29,
2020. The Company expects to negotiate and enter into new sales agency agreements in the second quarter of 2020.
NOTE 16. COMMITMENTS AND CONTINGENCIES
In the course of its business, the Company becomes involved in various claims, controversies, disputes and other contingent matters,
including the items described in this Note. Some of these claims, controversies, disputes and other contingent matters involve
litigation or other contested proceedings. For all such matters, the Company intends to vigorously protect and defend its interests and
pursue its rights. However, no assurance can be given as to the ultimate outcome of any particular matter because litigation and other
contested proceedings are inherently subject to numerous uncertainties. For matters that affect Avista Corp.’s operations, the
Company intends to seek, to the extent appropriate, recovery of incurred costs through the ratemaking process.
Collective Bargaining Agreements
The Company’s collective bargaining agreements with the IBEW represent approximately 45 percent of all of Avista Corp.’
employees. A three-year agreement with the local union in Washington and Idaho representing the majority (approximately 90
percent) of the Avista Corp.' bargaining unit employees will expire in March 2021. A three-year agreement in Oregon, which covers
approximately 50 employees will also expire on April 1, 2020.
The Company is in the process of negotiating new agreements with each of these represented bargaining units. However, there is a
risk that if collective bargaining agreements expire and new agreements are not reached in each of our jurisdictions, employees could
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.40
strike. Given the magnitude of employees that are covered by collective bargaining agreements, this could result in disruptions to our
operations. However, the Company believes that the possibility of this occurring is remote.
Legal Proceedings Related to the Terminated Acquisition by Hydro One
See Note 18 for information regarding the termination of the proposed acquisition of the Company by Hydro One.
In connection with the now terminated acquisition, three lawsuits were filed in the United States District Court for the Eastern District
of Washington and were subsequently voluntarily dismissed by the plaintiffs.
One lawsuit was filed in the Superior Court for the State of Washington in and for Spokane County, captioned as follows:
Fink v. Morris, et al., No. 17203616-6 (filed September 15, 2017, amended complaint filed October 25, 2017).
The complaint generally alleged that the members of the Board of Directors of Avista Corp. breached their fiduciary duties by, among
other things, conducting an allegedly inadequate sale process and agreeing to the acquisition at a price that allegedly undervalued
Avista Corporation, and that Hydro One Limited, Olympus Holding Corp., and Olympus Corp. aided and abetted those purported
breaches of duty. The complaint sought various remedies, including monetary damages, attorneys’ fees and expenses. Subsequent to
the termination of the proposed acquisition in January 2019, the complaint was voluntarily dismissed by the plaintiffs.
Boyds Fire (State of Washington Department of Natural Resources v. Avista)
On August 19, 2019, the Company was served with a complaint filed by the State of Washington Department of Natural Resources,
seeking recovery of fire suppression costs and related expenses incurred in connection with a wildfire that occurred in Ferry County,
Washington in August 2018. Specifically, the complaint alleges that the fire, which became known as the “Boyds Fire,” was caused
by a dead ponderosa pine tree falling into an overhead distribution line, and that Avista Corp. was negligent in failing to identify and
remove it before the tree came into contact with the line. Avista Corp. disputes that the tree in question was the cause of the fire, and
that it was negligent in failing to identify and remove it. The case is in the early stages of discovery and the plaintiff has not yet
provided a statement specifying damages. Because the resolution of this claim remains uncertain, legal counsel cannot express an
opinion on the extent, if any, of the Company’s liability, nor is it possible for the Company to estimate the impact of any outcome at
this time. The Company intends to vigorously defend itself in the litigation.
Other Contingencies
In the normal course of business, the Company has various other legal claims and contingent matters outstanding. The Company
believes that any ultimate liability arising from these actions will not have a material impact on its financial condition, results of
operations or cash flows. It is possible that a change could occur in the Company’s estimates of the probability or amount of a liability
being incurred. Such a change, should it occur, could be significant.
The Company routinely assesses, based on studies, expert analysis and legal reviews, its contingencies, obligations and commitments
for remediation of contaminated sites, including assessments of ranges and probabilities of recoveries from other responsible parties
who either have or have not agreed to a settlement as well as recoveries from insurance carriers. The Company’s policy is to accrue
and charge to current expense identified exposures related to environmental remediation sites based on estimates of investigation,
cleanup and monitoring costs to be incurred. For matters that affect Avista Corp.’ operations, the Company seeks, to the extent
appropriate, recovery of incurred costs through the ratemaking process.
The Company has potential liabilities under the Endangered Species Act for species of fish, plants and wildlife that have either
already been added to the endangered species list, listed as “threatened” or petitioned for listing. Thus far, measures adopted and
implemented have had minimal impact on the Company. However, the Company will continue to seek recovery, through the
ratemaking process, of all operating and capitalized costs related to these issues.
Under the federal licenses for its hydroelectric projects, the Company is obligated to protect its property rights, including water rights.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.41
In addition, the Company holds additional non-hydro water rights. The State of Montana is examining the status of all water right
claims within state boundaries through a general adjudication. Claims within the Clark Fork River basin could adversely affect the
energy production of the Company’s Cabinet Gorge and Noxon Rapids hydroelectric facilities. The state of Idaho has initiated
adjudication in northern Idaho, which will ultimately include the lower Clark Fork River, the Spokane River and the Coeur d’Alene
basin. The Company is and will continue to be a participant in these and any other relevant adjudication processes. The complexity of
such adjudications makes each unlikely to be concluded in the foreseeable future. As such, it is not possible for the Company to
estimate the impact of any outcome at this time. The Company will continue to seek recovery, through the ratemaking process, of all
operating and capitalized costs related to this issue.
NOTE 17. REGULATORY MATTERS
Power Cost Deferrals and Recovery Mechanisms
Deferred power supply costs are recorded as a deferred charge or liability on the Balance Sheets for future prudence review and
recovery or rebate through retail rates. The power supply costs deferred include certain differences between actual net power supply
costs incurred by Avista Corp. and the costs included in base retail rates. This difference in net power supply costs primarily results
from changes in:
short-term wholesale market prices and sales and purchase volumes,
the level, availability and optimization of hydroelectric generation,
the level and availability of thermal generation (including changes in fuel prices),
retail loads, and
sales of surplus transmission capacity.
In Washington, the ERM allows Avista Corp. to periodically increase or decrease electric rates with WUTC approval to reflect
changes in power supply costs. The ERM is an accounting method used to track certain differences between actual power supply
costs, net of wholesale sales and sales of fuel, and the amount included in base retail rates for Washington customers and defer these
differences (over the $4.0 million deadband and sharing bands) for future surcharge or rebate to customers. For 2019, the Company
recognized a pre-tax benefit of $4.4 million under the ERM in Washington compared to a benefit of $6.1 million for 2018. Total net
deferred power costs under the ERM were a liability of $40.0 million as of December 31, 2019 and a liability of $34.4 million as of
December 31, 2018. These deferred power cost balances represent amounts due to customers. Pursuant to WUTC requirements,
should the cumulative deferral balance exceed $30 million in the rebate or surcharge direction, the Company must make a filing with
the WUTC to adjust customer rates to either return the balance to customers or recover the balance from customers. Avista Corp.
makes an annual filing on, or before, April 1 of each year to provide the opportunity for the WUTC staff and other interested parties
to review the prudence of, and audit, the ERM deferred power cost transactions for the prior calendar year.
The cumulative rebate balance exceeds $30 million and as a result, the Company's 2019 filing contained a proposed rate refund,
effective July 1, 2019 over a three-year period. Subsequent to this filing, the WUTC approved the ERM rebate over a two-year
period.
Avista Corp. has a PCA mechanism in Idaho that allows it to modify electric rates on October 1 of each year with IPUC approval.
Under the PCA mechanism, Avista Corp. defers 90 percent of the difference between certain actual net power supply expenses and
the amount included in base retail rates for its Idaho customers. The October 1 rate adjustments recover or rebate power costs deferred
during the preceding July-June twelve-month period. Total net power supply costs deferred under the PCA mechanism were an asset
of $0.3 million as of December 31, 2019 and a liability of $7.6 million as of December 31, 2018. Deferred power cost assets represent
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.42
amounts due from customers and liabilities represent amounts due to customers.
Natural Gas Cost Deferrals and Recovery Mechanisms
Avista Corp. files a PGA in all three states it serves to adjust natural gas rates for: 1) estimated commodity and pipeline transportation
costs to serve natural gas customers for the coming year, and 2) the difference between actual and estimated commodity and
transportation costs for the prior year. Total net deferred natural gas costs to be refunded to customers were a liability of $3.2 million
as of December 31, 2019 and a liability of $40.7 million as of December 31, 2018. These balances represent amounts due to
customers.
Decoupling and Earnings Sharing Mechanisms
Decoupling (also known as an FCA in Idaho) is a mechanism designed to sever the link between a utility's revenues and consumers'
energy usage. In each of Avista Corp.' jurisdictions, Avista Corp.' electric and natural gas revenues are adjusted so as to be based on
the number of customers in certain customer rate classes and assumed "normal" kilowatt hour and therm sales, rather than being based
on actual kilowatt hour and therm sales. The difference between revenues based on the number of customers and "normal" sales and
revenues based on actual usage is deferred and either surcharged or rebated to customers beginning in the following year. Only
residential and certain commercial customer classes are included in decoupling mechanisms.
Washington Decoupling and Earnings Sharing
In Washington, the WUTC approved the Company's decoupling mechanisms for electric and natural gas for a five-year period
beginning January 1, 2015. In March 2020, th WUTC extended the electric and natural gas decoupling mechanisms through March
31, 2025. Electric and natural gas decoupling surcharge rate adjustments to customers are limited to a 3 percent increase on an annual
basis, with any remaining surcharge balance carried forward for recovery in a future period. There is no limit on the level of rebate
rate adjustments.
The decoupling mechanisms each include an after-the-fact earnings test. At the end of each calendar year, separate electric and natural
gas earnings calculations are made for the calendar year just ended. These earnings tests reflect actual decoupled revenues,
normalized power supply costs and other normalizing adjustments. If the Company earns more than its authorized ROR in
Washington, 50 percent of excess earnings are rebated to customers through adjustments to decoupling surcharge or rebate balances.
See below for a summary of cumulative balances under the decoupling and earnings sharing mechanisms.
Idaho FCA and Earnings Sharing Mechanisms
In Idaho, the IPUC approved the implementation of FCAs for electric and natural gas (similar in operation and effect to the
Washington decoupling mechanisms) for an initial term of three years, beginning January 1, 2016. During the first quarter of 2018,
the FCA in Idaho was extended for a one-year term through December 31, 2019. On December 13, 2019, the IPUC approved an
extension of the FCAs through March 31, 2025.
Oregon Decoupling Mechanism
In February 2016, the OPUC approved the implementation of a decoupling mechanism for natural gas, similar to the Washington and
Idaho mechanisms described above. The decoupling mechanism became effective on March 1, 2016. There will be an opportunity for
interested parties to review the mechanism and recommend changes, if any, by September 2019. Changes related to deferral interest
rates were recommended by the parties in Avista Corp.'s 2019 general rate case and were implemented effective January 15, 2020. In
Oregon, an earnings review is conducted on an annual basis. In the annual earnings review, if the Company earns more than 100 basis
points above its allowed ROE, one-third of the earnings above the 100 basis points would be deferred and later returned to customers.
The earnings review is separate from the decoupling mechanism and was in place prior to decoupling. See below for a summary of
cumulative balances under the decoupling and earnings sharing mechanisms.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.43
Cumulative Decoupling and Earnings Sharing Mechanism Balances
As of December 31, 2019 and December 31, 2018, the Company had the following cumulative balances outstanding related to
decoupling and earnings sharing mechanisms in its various jurisdictions (dollars in thousands):
December 31, December 31,
2019 2018
Washington
Decoupling surcharge $ 22,440 $ 12,671
Provision for earnings sharing rebate — (693)
Idaho
Decoupling surcharge $ 2,549 $ 2,150
Provision for earnings sharing rebate (686) (774)
Oregon
Decoupling rebate $ (739) $ (898)
Provision for earnings sharing rebate — —
NOTE 18. TERMINATION OF PROPOSED ACQUISITION BY HYDRO ONE
On July 19, 2017, Avista Corp. entered into a Merger Agreement that provided for Avista Corp. to become an indirect, wholly-owned
subsidiary of Hydro One, subject to the satisfaction or waiver of specified closing conditions, including approval by regulatory
agencies. Hydro One, based in Toronto, is Ontario’s largest electricity transmission and distribution provider.
Termination of the Merger Agreement
Due to the denial of the proposed merger by certain of the Company's regulatory commissions, on January 23, 2019, Avista Corp.,
Hydro One and certain subsidiaries thereof, entered into a Termination Agreement indicating their mutual agreement to terminate the
Merger Agreement, effective immediately. Pursuant to the terms of the Termination Agreement, Hydro One paid Avista Corp. a $103
million termination fee on January 24, 2019. The termination fee was used for reimbursing the Company's transaction costs incurred
from 2017 to 2019. The balance of the termination fee remaining after payment of 2019 transaction costs and applicable income taxes
was used for general corporate purposes and reduced the Company's need for external financing. The 2019 costs totaled $19.7 million
pre-tax and included financial advisers' fees, legal fees, consulting fees and employee time.
Other Information Related to the Terminated Acquisition
Due to the termination of the acquisition, all the financial commitments that were included in the various settlement agreements with
the commissions for the proposed acquisition will not be required to be performed or observed.
The Company incurred significant transaction costs consisting primarily of consulting, banking fees, legal fees and employee time,
and these costs are not being passed through to customers. When the Company was assuming the transaction was going to be
completed, a significant portion of these costs were not deductible for income tax purposes. Now that the transaction has been
terminated, more of the previously incurred transaction costs are deductible so it has recorded additional tax benefits from these costs
in 2019.
See Note 16 for discussion of shareholder lawsuits filed against the Company, the Company’s directors, Hydro One, Olympus
Holding Corp., and Olympus Corp. in relation to the Merger Agreement and the proposed acquisition.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.44
NOTE 19. SALE OF METALfx
In April 2019, Bay Area Manufacturing, Inc., a non-regulated subsidiary of Avista Corp., entered into a definitive agreement to sell
its interest in METALfx to an independent third party. The transaction was a stock sale for a total cash purchase price of $17.5
million, plus cash on-hand, subject to customary closing adjustments. The transaction closed on April 18, 2019, and as of that date the
Company has no further involvement with METALfx.
The purchase price of $17.5 million, as adjusted, was divided among the security holders of METALfx, including the minority
shareholder, pro-rata based on ownership (Avista Corp. owned 89.2 percent of the equity of METALfx). As required under the
purchase agreement, $1.2 million (7 percent of the purchase price) will be held in escrow for 24 months from the closing of the
transaction to satisfy certain indemnification obligations.
When all escrow amounts are released, the sales transaction is expected to provide cash proceeds to Avista Corp., net of payments to
the minority holder, contractually obligated compensation payments and other transaction expenses, of $16.5 million and result in a
net gain after-tax of $3.3 million. The Company expects to receive the full amount of its portion of the escrow accounts; therefore, the
full amounts are included in the gain calculation.
NOTE 20. SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental cash flow information consisted of the following items for the years ended December 31 (dollars in thousands):
2019 2018
Cash paid for interest $ 92,681 $ 90,394
Cash paid for income taxes 26,164 16,576
Cash received for income tax refunds (589) (3,025)

NOTE 21. SUBSEQUENT EVENTS
The Company as evaluated its subsequent events as of April 14th, 2020.
2015 Washington General Rate Cases
In January 2016, the Company received an order (Order 05) that concluded its electric and natural gas general rate cases that were
originally filed with the WUTC in February 2015. New electric and natural gas rates were effective on January 11, 2016.
PC Petition for Judicial Review
In March 2016, PC filed in Thurston County Superior Court a Petition for Judicial Review of the WUTC's Order 05 described above.
In April 2016, this matter was certified for review directly by the Court of Appeals, an intermediate appellate court in the State of
Washington.
On August 7, 2018, the Court of Appeals issued a "Published Opinion" (Opinion) which concluded that the WUTC's use of an
attrition allowance to calculate Avista Corp.'s rate base violated Washington law. In the Opinion, the Court stated that because the
projected additions to rate base in the future were not "used and useful" for service at the time the request for the rate increase was
made, they may not lawfully be included in the Company's rate base to justify a rate increase. Accordingly, the Court concluded that
the WUTC erred in including an attrition allowance in the calculation of Avista Corp.’s electric and natural gas rate base. The Court
noted, however, that the law does not prohibit an attrition allowance in the calculation, for ratemaking purposes, of recoverable
operating and maintenance expense. Since the WUTC order provided one lump sum attrition allowance without distinguishing what
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.45
portion was for rate base and which was for operating and maintenance expenses or other considerations, the Court struck all portions
of the attrition allowance attributable to Avista Corp.'s rate base and reversed and remanded the case for the WUTC to recalculate
Avista Corp.’s rates without including an attrition allowance in the calculation of rate base.
On March 6, 2020, the Company received an order from the WUTC that will require it to refund $8.5 million to electric and natural
gas customers. The Company will refund $4.9 million to electric customers and $3.6 million to natural gas customers. The Company
recorded a customer refund liability of $8.5 million in 2019.
Colstrip Units 3 & 4 Outage and Replacement Power Costs
In 2019, the Company filed a case with the WUTC to recover costs associated with an unplanned power outage at Colstrip Units 3
and 4. The primary issue is related to the cost of replacement power incurred in July and August 2018 due to a forced outage at
Colstrip Units 3 & 4. That outage occurred due to the plant exceeding certain air quality standards. In testimony filed by WUTC Staff
and Public Counsel on January 10, 2020, the parties recommend the WUTC disallow $3.3 million in replacement power costs. Avista
Corp. filed testimony on January 23, 2020, and provided support for no disallowance, but if the WUTC believes a disallowance is
appropriate, the level of disallowance would be $2.4 million.
On March 20, 2020, the Company received an order from the WUTC related to costs associated with a an unplanned outage of
Colstrip Units 3 and 4 in 2018. In its order, the WUTC disallowed approximately $3 million for the cost of replacement power during
the unplanned outage.
2019 Washington General Rate Cases
On March 25, 2020, the Company received an order from the WUTC that approved the partial multi-party settlement agreement that
was filed on November 21, 2019. The approved rates are designed to increase annual base electric revenues by $28.5 million, or 5.7
percent, and annual natural gas base revenues by $8.0 million, or 8.5 percent, effective April 1, 2020. The revenue increases are based
on a 9.4 percent return on equity with a common equity ratio of 48.5 percent and a rate of return on rate base of 7.21 percent.
As part of the WUTC order, the Company will return approximately $40 million from the ERM rebate to customers over a two-year
period. The ERM rebate includes approximately $3 million that was recently disallowed by the Commission for the cost of
replacement power during an unplanned outage at the Colstrip generating facility in 2018. The Commission directed the Company to
return a larger portion of the ERM money during the first year to achieve a net-zero billed impact to electric customers.
Included in the WUTC order is the acceleration of depreciation of Colstrip Units 3 & 4, to reflect a remaining useful life through
December 31, 2025. The order utilizes certain electric tax benefits associated with the 2018 tax reform to partially offset these
increased costs. The order also sets aside $3 million for community transition efforts to mitigate the impacts of the eventual closure of
Colstrip, half funded by customers and half funded by Company shareholders.
In addition, a recent order received from the WUTC on the 2015 remand cases requires the Company to refund $8.5 million to electric
and natural gas customers. The Company will refund $4.9 million to electric customers and $3.6 million to natural gas customers over
a one year period, which will partially offset the increase in base rates.
Lastly, the order includes the extension of electric and natural gas decoupling mechanisms through March 31, 2025.
Credit Agreement
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.46
On April 6, 2020, the Company entered into a Credit Agreement with U.S. Bank National Association, as Lender and Administrative
Agent, and CoBank, ACB, as Lender in the amount of $100 million with a maturity date of April 5, 2021. Loans under this agreement
are unsecured and will have a variable annual interest rate determined by either the Eurodollar rate or the Alternative Base Rate
depending on the type of loan selected by Avista Corp.
The Credit Agreement contains customary covenants and default provisions, including a covenant not to permit the ratio of
"consolidated total debt" to "consolidated total capitalization" of Avista Corp. to be greater than 65 percent at any time.
The Company has borrowed the entire $100 million available under this agreement, which is expected to be used to provide additional
liquidity and for general corporate purposes.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.47

This Page Intentionally Left Blank
Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization and Depletion
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Item
(a)
Total Company
For the Current
Quarter/Year
UTILITY PLANT 1
In Service 2
Plant in Service (Classified) 6,302,457,210 3
Property Under Capital Leases 69,745,591 4
Plant Purchased or Sold 5
Completed Construction not Classified 6
Experimental Plant Unclassified 7
TOTAL Utility Plant (Total of lines 3 thru 7) 6,372,202,801 8
Leased to Others 9
Held for Future Use 12,951,318 10
Construction Work in Progress 157,909,990 11
Acquisition Adjustments 279,264 12
TOTAL Utility Plant (Total of lines 8 thru 12) 6,543,343,373 13
Accumulated Provisions for Depreciation, Amortization, & Depletion 2,121,893,905 14
Net Utility Plant (Total of lines 13 and 14) 4,421,449,468 15
DETAIL OF ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION 16
In Service: 17
Depreciation 1,995,071,690 18
Amortization and Depletion of Producing Natural Gas Land and Land Rights 19
Amortization of Underground Storage Land and Land Rights 20
Amortization of Other Utility Plant 126,822,215 21
TOTAL In Service (Total of lines 18 thru 21) 2,121,893,905 22
Leased to Others 23
Depreciation 24
Amortization and Depletion 25
TOTAL Leased to Others (Total of lines 24 and 25) 26
Held for Future Use 27
Depreciation 28
Amortization 29
TOTAL Held for Future Use (Total of lines 28 and 29) 30
Abandonment of Leases (Natural Gas) 31
Amortization of Plant Acquisition Adjustment 32
TOTAL Accum. Provisions (Should agree with line 14 above)(Total of lines 22, 26, 30, 31, and 32) 2,121,893,905 33
Page 200FERC FORM NO. 2 (12-96)
Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization and Depletion (continued)
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Electric
(c)
Gas
(d)
Other (specify)
(e)
Common
(f)
1
2
651,998,049 1,330,407,424 4,320,051,737 3
69,745,591 4
5
6
7
721,743,640 1,330,407,424 4,320,051,737 8
9
714,936 190,585 12,045,797 10
24,865,213 2,416,941 130,627,836 11
279,264 12
747,323,789 1,333,014,950 4,463,004,634 13
197,862,806 395,724,780 1,528,306,319 14
549,460,983 937,290,170 2,934,698,315 15
16
17
96,693,162 394,754,186 1,503,624,342 18
19
20
101,169,644 970,594 24,681,977 21
197,862,806 395,724,780 1,528,306,319 22
23
24
25
26
27
28
29
30
31
32
197,862,806 395,724,780 1,528,306,319 33
Page 201FERC FORM NO. 2 (12-96)
Schedule Page: 200 Line No.: 4 Column: f
ROU Asset - $69,745,591
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
FOOTNOTE DATA
FERC FORM NO. 2 (12-96)Page 552.1

This Page Intentionally Left Blank
Gas Plant in Service (Accounts 101, 102, 103, and 106)
1. Report below the original cost of gas plant in service according to the prescribed accounts.
2. In addition to Account 101, Gas Plant in Service (Classified), this page and the next include Account 102, Gas Plant Purchased or Sold, Account
103, Experimental Gas Plant Unclassified, and Account 106, Completed Construction Not Classified-Gas.
3. Include in column (c) and (d), as appropriate corrections of additions and retirements for the current or preceding year.
4. Enclose in parenthesis credit adjustments of plant accounts to indicate the negative effect of such accounts.
5. Classify Account 106 according to prescribed accounts, on an
estimated basis if necessary, and include the entries in column (c).Also to be included in column (c) are entries for reversals of tentative distributions of
prior year reported in column (b). Likewise, if the respondent has a significant amount of plant retirements which have not been classified to primary
accounts at the end of the year, include in column (d) a tentative distribution of such retirements, on an estimated basis, with appropriate contra entry to
the account for accumulated depreciation provision. Include also in column (d) reversals of tentative distributions of prior year's unclassified retirements.
Attach supplemental statement showing the account distributions of these tentative classifications in columns (c) and (d),
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Account
(a)
Balance at
Beginning of Year
(b)
Additions
(c)
Line
No.
INTANGIBLE PLANT 1
301 Organization 2
302 Franchises and Consents 3
303 Miscellaneous Intangible Plant 2,916,864 29,484 4
TOTAL Intangible Plant (Enter Total of lines 2 thru 4) 2,916,864 29,484 5
PRODUCTION PLANT 6
Natural Gas Production and Gathering Plant 7
325.1 Producing Lands 8
325.2 Producing Leaseholds 9
325.3 Gas Rights 10
325.4 Rights-of-Way 11
325.5 Other Land and Land Rights 12
326 Gas Well Structures 13
327 Field Compressor Station Structures 14
328 Field Measuring and Regulating Station Equipment 15
329 Other Structures 16
330 Producing Gas Wells-Well Construction 17
331 Producing Gas Wells-Well Equipment 18
332 Field Lines 19
333 Field Compressor Station Equipment 20
334 Field Measuring and Regulating Station Equipment 21
335 Drilling and Cleaning Equipment 22
336 Purification Equipment 23
337 Other Equipment 24
338 Unsuccessful Exploration and Development Costs 25
339 Asset Retirement Costs for Natural Gas Production and 26
TOTAL Production and Gathering Plant (Enter Total of lines 8 27
PRODUCTS EXTRACTION PLANT 28
340 Land and Land Rights 29
341 Structures and Improvements 30
342 Extraction and Refining Equipment 31
343 Pipe Lines 32
344 Extracted Products Storage Equipment 33
Page 204FERC FORM NO. 2 (12-96)
Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued)
including the reversals of the prior years tentative account distributions of these amounts. Careful observance of the above instructions and the texts of
Account 101 and 106 will avoid serious omissions of respondent's reported amount for plant actually in service at end of year.
6. Show in column (f) reclassifications or transfers within utility plant accounts. Include also in column (f) the additions or reductions of primary account
classifications arising from distribution of amounts initially recorded in Account 102. In showing the clearance of Account 102, include in column (e) the
amounts with respect to accumulated provision for depreciation, acquisition adjustments, etc., and show in column (f) only the offset to the debits or credits
to primary account classifications.
7. For Account 399, state the nature and use of plant included in this account and if substantial in amount submit a supplementary statement showing
subaccount classification of such plant conforming to the requirements of these pages.
8. For each amount comprising the reported balance and changes in Account 102, state the property purchased or sold, name of vendor or purchaser,
and date of transaction. If proposed journal entries have been filed with the Commission as required by the Uniform System of Accounts, give date of such
filing.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance at
End of Year
(g)
Line
No.
1
2
3
( 48,120) 2,764,767 133,461 4
( 48,120) 2,764,767 133,461 5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Page 205FERC FORM NO. 2 (12-96)
Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Account
(a)
Balance at
Beginning of Year
(b)
Additions
(c)
Line
No.
345 Compressor Equipment 34
346 Gas Measuring and Regulating Equipment 35
347 Other Equipment 36
348 Asset Retirement Costs for Products Extraction Plant 37
TOTAL Products Extraction Plant (Enter Total of lines 29 thru 37) 38
TOTAL Natural Gas Production Plant (Enter Total of lines 27 and 39
Manufactured Gas Production Plant (Submit Supplementary 7,628 40
TOTAL Production Plant (Enter Total of lines 39 and 40) 7,628 41
NATURAL GAS STORAGE AND PROCESSING PLANT 42
Underground Storage Plant 43
350.1 Land 1,306,601 6,915 44
350.2 Rights-of-Way 59,812 6,930 45
351 Structures and Improvements 2,878,228 ( 1,251,680) 46
352 Wells 14,891,527 3,111,049 47
352.1 Storage Leaseholds and Rights 48
352.2 Reservoirs 1,667,492 49
352.3 Non-recoverable Natural Gas 5,810,311 50
353 Lines 1,106,781 1,123,741 51
354 Compressor Station Equipment 15,848,475 1,396,042 52
355 Other Equipment 1,655,168 ( 886,083) 53
356 Purification Equipment 403,712 156,536 54
357 Other Equipment 2,936,843 ( 1,176,554) 55
358 Asset Retirement Costs for Underground Storage Plant 56
TOTAL Underground Storage Plant (Enter Total of lines 44 thru 48,564,950 2,486,896 57
Other Storage Plant 58
360 Land and Land Rights 59
361 Structures and Improvements 60
362 Gas Holders 61
363 Purification Equipment 62
363.1 Liquefaction Equipment 63
363.2 Vaporizing Equipment 64
363.3 Compressor Equipment 65
363.4 Measuring and Regulating Equipment 66
363.5 Other Equipment 67
363.6 Asset Retirement Costs for Other Storage Plant 68
TOTAL Other Storage Plant (Enter Total of lines 58 thru 68) 69
Base Load Liquefied Natural Gas Terminaling and Processing Plant 70
364.1 Land and Land Rights 71
364.2 Structures and Improvements 72
364.3 LNG Processing Terminal Equipment 73
364.4 LNG Transportation Equipment 74
364.5 Measuring and Regulating Equipment 75
364.6 Compressor Station Equipment 76
364.7 Communications Equipment 77
364.8 Other Equipment 78
364.9 Asset Retirement Costs for Base Load Liquefied Natural Gas 79
TOTAL Base Load Liquefied Nat'l Gas, Terminaling and Processing 80
Page 206FERC FORM NO. 2 (12-96)
Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance at
End of Year
(g)
Line
No.
34
35
36
37
38
39
7,628 40
7,628 41
42
43
1,313,516 44
66,742 45
1,626,548 46
18,002,576 47
48
1,667,492 49
5,810,311 50
2,230,522 51
17,244,517 52
769,085 53
560,248 54
1,760,289 55
56
51,051,846 57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
Page 207FERC FORM NO. 2 (12-96)
Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Account
(a)
Balance at
Beginning of Year
(b)
Additions
(c)
Line
No.
TOTAL Nat'l Gas Storage and Processing Plant (Total of lines 57, 48,564,950 2,486,896 81
TRANSMISSION PLAN 82
365.1 Land and Land Rights 83
365.2 Rights-of-Way 84
366 Structures and Improvements 85
367 Mains 86
368 Compressor Station Equipment 87
369 Measuring and Regulating Station Equipment 88
370 Communication Equipment 89
371 Other Equipment 90
372 Asset Retirement Costs for Transmission Plant 91
TOTAL Transmission Plant (Enter Totals of lines 83 thru 91) 92
DISTRIBUTION PLANT 93
374 Land and Land Rights 1,179,375 342,042 94
375 Structures and Improvements 1,803,020 189,576 95
376 Mains 597,220,229 43,984,075 96
377 Compressor Station Equipment 97
378 Measuring and Regulating Station Equipment-General 11,967,781 457,917 98
379 Measuring and Regulating Station Equipment-City Gate 8,721,669 752,668 99
380 Services 369,619,102 28,254,676100
381 Meters 128,537,042 22,232,871101
382 Meter Installations102
383 House Regulators103
384 House Regulator Installations104
385 Industrial Measuring and Regulating Station Equipment 5,789,070 444,523105
386 Other Property on Customers' Premises106
387 Other Equipment 539107
388 Asset Retirement Costs for Distribution Plant108
TOTAL Distribution Plant (Enter Total of lines 94 thru 108) 1,124,837,827 96,658,348109
GENERAL PLANT110
389 Land and Land Rights 3,607,121 314,706111
390 Structures and Improvements 23,042,842 6,756,333112
391 Office Furniture and Equipment 1,186,531 294,645113
392 Transportation Equipment 17,710,955 751,277114
393 Stores Equipment 112,801115
394 Tools, Shop, and Garage Equipment 8,170,189 746,384116
395 Laboratory Equipment 324,175 94,377117
396 Power Operated Equipment 4,096,408 103,586118
397 Communication Equipment 3,714,172 88,864119
398 Miscellaneous Equipment 2,367120
Subtotal (Enter Total of lines 111 thru 120) 61,967,561 9,150,172121
399 Other Tangible Property122
399.1 Asset Retirement Costs for General Plant123
TOTAL General Plant (Enter Total of lines 121, 122 and 123) 61,967,561 9,150,172124
TOTAL (Accounts 101 and 106) 1,238,294,830 108,324,900125
Gas Plant Purchased (See Instruction 8)126
(Less) Gas Plant Sold (See Instruction 8)127
Experimental Gas Plant Unclassified128
TOTAL Gas Plant In Service (Enter Total of lines 125 thru 128) 1,238,294,830 108,324,900129
Page 208FERC FORM NO. 2 (12-96)
Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance at
End of Year
(g)
Line
No.
51,051,846 81
82
83
84
85
86
87
88
89
90
91
92
93
( 5) 1,521,412 94
( 15,283) 1,974,279 3,034 95
( 1,087,775) 633,397,298 6,719,231 96
97
( 92,457) 12,268,149 65,092 98
( 198,572) 9,235,056 40,709 99
( 86,422) 397,234,010 553,346100
( 48,981) 145,607,514 5,113,418101
102
103
104
( 65,248) 6,154,052 14,293105
106
539107
108
( 1,594,743) 1,207,392,309 12,509,123109
110
3,921,827111
( 57,342) 29,741,833112
( 17,798) 1,267,984 195,394113
( 30,652) 18,032,901 398,679114
112,801115
( 10,233) 8,775,280 131,060116
( 421) 412,859 5,272117
4,199,994118
( 34,811) 2,723,028 1,045,197119
2,367120
( 151,257) 69,190,874 1,775,602121
122
123
( 151,257) 69,190,874 1,775,602124
( 1,794,120) 1,330,407,424 14,418,186125
126
127
128
( 1,794,120) 1,330,407,424 14,418,186129
Page 209FERC FORM NO. 2 (12-96)
Gas Plant Held for Future Use (Account 105)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Description and Location
of Property
(a)
1. Report separately each property held for future use at end of the year having an original cost of $1,000,000 or more. Group other
items of property held for future use.
2. For property having an original cost of $1,000,000 or more previously used in utility operations, now held for future use, give in
column (a), in addition to other required information, the date that utility use of such property was discontinued, and the date the original
cost was transferred to Account 105.
Date Originally Included
in this Account
(b)
Date Expected to be Used
in Utility Service
(c)
Balance at
End of Year
(d)
Gas Distribution Mains and Services 190,58512/31/202603/01/2007 1
located in Coeur d'Alene, Idaho 2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
190,585Total 45
Page 214FERC FORM NO. 2 (12-96)
Construction Work in Progress-Gas (Account 107)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Description of Project
(a)
Construction Work in
Progress-Gas
(Account 107)
(b)
1. Report below descriptions and balances at end of year of projects in process of construction (Account 107).
2. Show items relating to "research, development, and demonstration" projects last, under a caption Research, Development,
and Demonstration (see Account 107 of the Uniform System of Accounts).
3. Minor projects (less than $1,000,000) may be grouped.
Estimated Additional
Cost of Project
(c)
Minor Projects under $1,000,000: 1
805,737 488,630Gas Revenue Blanket 2
635,030 411,570Regulator Reliable - Blanket 3
4,112 312,457Gas Reinforce-Minor Blanket 4
204,336 214,342Legal & Compliance Technology 5
10,638 149,352Transportation Equip 6
( 103,853) 157,607Gas Distribution Non-Revenue Blanket 7
4,585,671 119,702Cheney HP Reinforcement 8
( 50,619) 101,521Structures & Improv 9
101,109 87,360Cathodic Protection-Minor Blanket 10
1,385,654 83,025Gas Replace-St&Hwy 11
2,461,386 65,742Rathdrum Prairie HP Gas Reinforcement 12
97,823 66,957Gas Telemetry 13
( 29,365) 55,331Environmental Control & Monitoring Systems 14
26,397 33,108Gas Op Qual - Tooling, Vehicles and Material 15
2,768,679 30,548NSC Greene St HP Gas Main 16
23,027,529 26,793Dollar Rd Service Center Addition and Remodel 17
( 1,795) 26,134Tools Lab & Shop Equipment 18
14,500 10,943Gas ERT Minor Blanket 19
126,822 8,454Facilities and Storage Locations Security 20
( 1,538) 6,190Gas Regulators Minor Blanket 21
2,082Immaterial Difference (GD.WA) 22
14,815 1,342Facilities Driven Technology Improvements 23
24,273 709Replace Deteriorating Gas System 24
2,999,935 63Washington AMI 25
( 43,021)Accrual adjustment to all service/jurisd for GD 26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
2,416,941 39,107,276Total 45
Page 216FERC FORM NO. 2 (12-96)
1. For each construction overhead explain: (a) the nature and extent of work, etc., the overhead charges are intended to cover, (b) the general
procedure for determining the amount capitalized, (c) the method of distribution to construction jobs, (d) whether different rates are applied to
different types of construction, (e) basis of differentiation in rates for different types of construction, and (f) whether the overhead is directly or
indirectly assigned.
2. Show below the computation of allowance for funds used during construction rates, in accordance with the provisions of Gas Plant
Instructions 3 (17) of the Uniform System of Accounts.
3. Where a net-of-tax rate for borrowed funds is used, show the appropriate tax effect adjustment to the computations below in a manner that
clearly indicates the amount of reduction in the gross rate for tax effects.
Construction costs with a direct relationship to new construction and capital replacement activities that cannot be clearly
identified with specific projects are charged to overhead pools. The established pools are:
Construction Overhead North Gas
Construction Overhead South Gas
Pool costs are allocated monthly to gas construction projects on a percent rate applied to direct project costs, excluding
AFUDC. Each pool's rate is calculated separately and applied only to the related gas construction projects for allocation.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
General Description of Construction Overhead Procedure
FERC FORM NO. 2 (REV 12-07)218.1
General Description of Construction Overhead Procedure (continued)
COMPUTATION OF ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION RATES
1. For line (5), column (d) below, enter the rate granted in the last rate proceeding. If not available, use the average rate earned during the preceding 3 years.
2. Identify, in a footnote, the specific entity used as the source for the capital structure figures.
3. Indicate, in a footnote, if the reported rate of return is one that has been approved in a rate case, black-box settlement rate, or an actual three-year average rate.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Title
(a)
Cost Rate
Percentage
(d)
Amount
(b)
Capitalization
Ration (percent)
(c)
1. Components of Formula (Derived from actual book balances and actual cost rates):
(1) Average Short-Term Debt 171,206,000S
(2) Short-Term Interest 2.94s
(3) Long-Term Debt 1,770,500,000 5.32 49.87D d
(4) Preferred Stock P p
(5) Common Equity 1,779,475,228 9.50 50.13C c
(6) Total Capitalization 3,549,975,228 100.00
(7) Average Construction Work In Progress Balance 162,445,000W
2.942. Gross Rate for Borrowed Funds s(S/W) + d[(D/(D+P+C)) (1-(S/W))]
3. Rate for Other Funds [1-(S/W)] [p(P/(D+P+C)) + c(C/(D+P+C))]
4. Weighted Average Rate Actually Used for the Year:
a. Rate for Borrowed Funds -
b. Rate for Other Funds -
Page 218aFERC FORM NO. 2 (REV 12-07)
Accumulated Provision for Depreciation of Gas Utility Plant (Account 108)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Item
(a)
Total
(c+d+e)
(b)
1. Explain in a footnote any important adjustments during year.
2. Explain in a footnote any difference between the amount for book cost of plant retired, line 10, column (c), and that reported for gas
plant in service, page 204-209, column (d), excluding retirements of nondepreciable property.
3. The provisions of Account 108 in the Uniform System of Accounts require that retirements of depreciable plant be recorded when
such plant is removed from service. If the respondent has a significant amount of plant retired at year end which has not been recorded
and/or classified to the various reserve functional classifications, make preliminary closing entries to tentatively functionalize the book
cost of the plant retired. In addition, include all costs included in retirement work in progress at year end in the appropriate functional
classifications.
4. Show separately interest credits under a sinking fund or similar method of depreciation accounting.
5. At lines 7 and 14, add rows as necessary to report all data. Additional rows should be numbered in sequence, e.g., 7.01, 7.02, etc.
Gas Plant in
Service
(c)
Gas Plant Held
for Future Use
(d)
Gas Plant Leased
to Others
(e)
Section A. BALANCES AND CHANGES DURING YEAR
1 377,778,951 377,778,951 Balance Beginning of Year
2 Depreciation Provisions for Year, Charged to
3 29,562,694 29,562,694 (403) Depreciation Expense
4 (403.1) Depreciation Expense for Asset Retirement Costs
5 (413) Expense of Gas Plant Leased to Others
6 1,435,448 1,435,448 Transportation Expenses - Clearing
7 Other Clearing Accounts
8 Other Clearing (Specify) (footnote details):
9
10 30,998,142 30,998,142TOTAL Deprec. Prov. for Year (Total of lines 3 thru 8)
11 Net Charges for Plant Retired:
12 ( 14,284,725) ( 14,284,725) Book Cost of Plant Retired
13 ( 302,143) ( 302,143) Cost of Removal
14 ( 15,495) ( 15,495) Salvage (Credit)
15 ( 14,571,373) ( 14,571,373)TOTAL Net Chrgs for Plant Ret. (Total of lines 12 thru 14)
16 548,466 548,466 Other Debit or Credit Items (Describe) (footnote details):
17
18 Book Cost of Asset Retirement Costs
19 394,754,186 394,754,186Balance End of Year (Total of lines 1,10,15,16 and 18)
Section B. BALANCES AT END OF YEAR ACCORDING TO FUNCTIONAL
CLASSIFICATIONS
21 Productions-Manufactured Gas
22 Production and Gathering-Natural Gas
23 Products Extraction-Natural Gas
24 18,443,132 18,443,132 Underground Gas Storage
25 Other Storage Plant
26 Base Load LNG Terminaling and Processing Plant
27 Transmission
28 354,875,726 354,875,726 Distribution
29 21,435,328 21,435,328 General
30 394,754,186 394,754,186TOTAL (Total of lines 21 thru 29)
Page 219FERC FORM NO. 2 (12-96)
Gas Stored (Accounts 117.1, 117.2, 117.3, 117.4, 164.1, 164.2, and 164.3)
1. If during the year adjustments were made to the stored gas inventory reported in columns (d), (f), (g), and (h) (such as to correct cumulative inaccuracies of
gas measurements), explain in a footnote the reason for the adjustments, the Dth and dollar amount of adjustment, and account charged or credited.
2. Report in column (e) all encroachments during the year upon the volumes designated as base gas, column (b), and system balancing gas, column (c), and
gas property recordable in the plant accounts.
3. State in a footnote the basis of segregation of inventory between current and noncurrent portions. Also, state in a footnote the method used to report
storage (i.e., fixed asset method or inventory method).
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Description
(a)
(Account
117.1)
(b)
(Account
117.2)
(c)
Noncurrent
(Account
117.3)
(d)
(Account
117.4)
(e)
Current
(Account
164.1)
(f)
LNG
(Account
164.2)
(g)
LNG
(Account
164.3)
(h)
Total
(i)
Balance at Beginning of 18,601,260 11,609,184 6,992,076 1
Gas Delivered to Storage 35,303,621 35,303,621 2
Gas Withdrawn from 32,607,408 32,607,408 3
Other Debits and Credits 4
Balance at End of Year 21,297,473 14,305,397 6,992,076 5
Dth 8,347,858 7,094,798 1,253,060 6
Amount Per Dth 2.5513 2.0163 5.5800 7
Page 220FERC FORM NO. 2 (REV 04-04)
Book Cost at Beginning of Year
(If book cost is different from
cost to respondent, give cost to
respondent in a footnote and
explain difference)
(c)
Investments (Account 123, 124, and 136)
1. Report below investments in Accounts 123, Investments in Associated Companies, 124, Other Investments, and 136, Temporary Cash Investments.
2. Provide a subheading for each account and list thereunder the information called for:
(a) Investment in Securities-List and describe each security owned, giving name of issuer, date acquired and date of maturity. For bonds, also give principal amount, date of issue,
maturity, and interest rate. For capital stock (including capital stock of respondent reacquired under a definite plan for resale pursuant to authorization by the Board of Directors, and
included in Account 124, Other Investments) state number of shares, class, and series of stock. Minor investments may be grouped by classes. Investments included in Account 136,
Temporary Cash Investments, also may be grouped by classes.
(b) Investment Advances-Report separately for each person or company the amounts of loans or investment advances that are properly includable in Account 123. Include advances
subject to current repayment in Account 145 and 146. With respect to each advance, show whether the advance is a note or open account.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Description of Investment
(a)
Purchases or
Additions
During the Year
(d)
*
(b)
Investment in Spokane Energy (123000) 1
11,547,000Investment in Avista Capital II (123010) 2
59,355Other Investment - WZN Loans Sandpoint (124350) 3
26,221,702Other Investment - Coli Cash Value (124600) 4
( 26,221,702)Other Investment - Coli Borrowings (124610) 5
18,755Other Investment - WZN Loans Oregon (124680) 6
79,626,000Other Investment - WNP3 Exchange Power (124900) 7
( 77,993,039)Other Investment - AMT WNP3 Exchange (124930) 8
136,713Temp Cash Investments (136000) 9
Energy Commodity Contract (124020) 10
Other Investment-Non Affilicated LT Note Rec (124820) 11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Page 222FERC FORM NO. 2 (12-96)
Investments (Account 123, 124, and 136) (continued)
List each note, giving date of issuance, maturity date, and specifying whether note is a renewal. Designate any advances due from officers, directors, stockholders, or employees.
3. Designate with an asterisk in column (b) any securities, notes or accounts that were pledged, and in a footnote state the name of pledges and purpose of the pledge.
4. If Commission approval was required for any advance made or security acquired, designate such fact in a footnote and cite Commission, date of authorization, and case or docket
number.
5. Report in column (h) interest and dividend revenues from investments including such revenues from securities disposed of during the year.
6. In column (i) report for each investment disposed of during the year the gain or loss represented by the difference between cost of the investment (or the other amount at which carried
in the books of account if different from cost) and the selling price thereof, not including any dividend or interest adjustment includible in column (h).
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Gain or Loss from
Investment
Disposed of
(i)
Revenues for
Year
(h)
Sales or Other
Dispositions
During Year
(e)
Principal Amount or
No. of Shares at
End of Year
(f)
Book Cost at End of Year
(If book cost is different from cost
to respondent, give cost to
respondent in a footnote and
explain difference)
(g)
1
11,547,000 2
59,355 3
( 2,554,533) 28,776,235 4
2,554,533 ( 28,776,235) 5
139 18,616 6
79,626,000 7
( 77,993,039) 8
( 19,178) 155,891 9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Page 223FERC FORM NO. 2 (12-96)
Date of
Maturity
(c)
Investments in Subsidiary Companies (Account 123.1)
1. Report below investments in Account 123.1, Investments in Subsidiary Companies.
2. Provide a subheading for each company and list thereunder the information called for below. Sub-total by company and give a total in columns (e), (f), (g) and (h).
(a) Investment in Securities-List and describe each security owned. For bonds give also principal amount, date of issue, maturity, and interest rate.
(b) Investment Advances - Report separately the amounts of loans or investment advances which are subject to repayment, but which are not subject to current settlement. With respect
to each advance show whether the advance is a note or open account. List each note giving date of issuance, maturity date, and specifying whether note is a renewal.
3. Report separately the equity in undistributed subsidiary earnings since acquisition. The total in column (e) should equal the amount entered for Account 418.1.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Description of Investment
(a)
Amount of
Investment at
Beginning of Year
(d)
Date
Acquired
(b)
206,138,97101/01/1997Investment in Avista Capital 1
( 159,248,496)Avista Capital - Equity in Earnings 2
89,816,38007/01/2014Investment in AERC 3
16,816,830AERC- Equity in Earnings 4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
153,523,685TOTAL Cost of Account 123.1 $ 40 TOTAL
Page 224FERC FORM NO. 2 (12-96)
Investments in Subsidiary Companies (Account 123.1) (continued)
4. Designate in a footnote, any securities, notes, or accounts that were pledged, and state the name of pledgee and purpose of the pledge.
5. If Commission approval was required for any advance made or security acquired, designate such fact in a footnote and give name of Commission, date of authorization, and case or
docket number.
6. Report in column (f) interest and dividend revenues from investments, including such revenues from securities disposed of during the year.
7. In column (h) report for each investment disposed of during the year, the gain or loss represented by the difference between cost of the investment (or the other amount at which
carried in the books of account if different from cost), and the selling price thereof, not including interest adjustments includible in column (f).
8. Report on Line 40, column (a) the total cost of Account 123.1.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Gain or Loss from
Investment
Disposed of
(h)
Equity in Subsidiary
Earnings for Year
(e)
Revenues for Year
(f)
Amount of Investment
at End of Year
(g)
256,138,971( 50,000,000) 1
( 152,844,453) 6,404,043 2
89,816,380 3
13,995,056 10,000,000 7,178,226 4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
207,105,954( 40,000,000) 13,582,26940
Page 225FERC FORM NO. 2 (12-96)
Prepayments (Acct 165), Extraordinary Property Losses (Acct 182.1), Unrecovered Plant and Regulatory Study Costs (Acct 182.2)
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Nature of Payment
(a)
Balance at End
of Year
(in dollars)
(b)
1. Report below the particulars (details) on each prepayment.
PREPAYMENTS (ACCOUNT 165)
Prepaid Insurance 747,680 1
Prepaid Rents 2
Prepaid Taxes 3,759,647 3
Prepaid Interest 4
Miscellaneous Prepayments 20,174,932 5
TOTAL 24,682,259 6
Page 230aFERC FORM NO. 2 (12-96)

This Page Intentionally Left Blank
Other Regulatory Assets (Account 182.3)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Description and Purpose of
Other Regulatory Assets
(a)
Balance at
Beginning
Current
Quarter/Year
(b)
1. Report below the details called for concerning other regulatory assets which are created through the ratemaking actions of regulatory agencies (and not includable
in other accounts).
2. For regulatory assets being amortized, show period of amortization in column (a).
3. Minor items (5% of the Balance at End of Year for Account 182.3 or amounts less than $250,000, whichever is less) may be grouped by classes.
4. Report separately any "Deferred Regulatory Commission Expenses" that are also reported on pages 350-351, Regulatory Commission Expenses.
5. Provide in a footnote, for each line item, the regulatory citation where authorization for the regulatory asset has been granted (e.g. Commission Order, state
commission order, court decision).
Balance at End of
Current
Quarter/Year
(g)
Debits
(c)
Written off During
Quarter/Year
Account
Charged
(d)
Written off
During Period
Amount Recovered
(e)
Written off
During Period
Amount Deemed
Unrecoverable
(f)
606,842407WA Excess Nat Gas Line Extension Allowance 10,344,716 1,264,114 9,687,444 1
23,244,061228, 283Reg Asset Post Ret Liab 210,801,207 3,403,831 230,641,437 2
1,192,953283Regulatory Asset FAS109 Utility Plant 83,355,934 3,207,946 81,340,941 3
79,787283Regulatory Asset FAS109 DSIT Non Plant 3,023,201 1,682,091 1,420,897 4
107,699283Regulatory Asset FAS109 WNP3 107,699 5
269,272407, 537Regulatory Asset-Spokane River Relicense 133,911 403,183 6
1,279,988407Regulatory Asset-Lake CDA Settlement - Varies 41,309,157 42,589,145 7
6,000,822182Reg Assets-Decouplings Surcharge 19,326,621 23,550,873 1,776,570 8
Reg Asset - Colstrip 4,945,687 4,945,687 9
51,720,475244, 175Commodity MTM ST & LT Regulatory Asset 6,573,588 58,294,063 10
3,543,528182
Regulatory Assset FAS 143 Asset Retirement
Obligation 1,800,206 653,201 4,690,533
11
119,941242Regulatory Asset Workers Comp 1,126,296 612,173 634,064 12
362,530,376244, 175Interest Rate Swap Asset 168,594,071 397,270,942 133,853,505 13
56,717,534242DSM Asset 12,170,199 49,213,659 19,674,074 14
70,968283, 410Deferred ITC 3,981,955 4,052,923 15
31,356431Regulatory Asset MDM System 13,394,821 9,396,022 4,030,155 16
185,080254, 407Regulatory Asset BPA Residential Exchange 1,326,885 1,421,535 90,430 17
75,672805Regulatory Asset FISERV 3,594,035 1,739,188 1,930,519 18
1,492,712108,282
Regulatory Asset- AFUDC (PIC, WIP) & Equity
DFIT 44,093,659 42,079,953 3,506,418
19
Regulatory Asset ID PCA Deferral - 1 year 256,594 256,594 20
Existing Meters/ERTS Retirement Def 13,052,304 13,052,304 21
Other Regulatory Assets 2,321 2,212 109 22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
0 509,269,066 598,724,109 553,752,325 643,207,368Total 40
Page 232FERC FORM NO. 2/3Q (REV 12-07)
Schedule Page: 232 Line No.: 1 Column: a
Residential Schedule 101 customers who receive a natural gas line extension as part of conversion to natural gas from
another fuel source. Amortization for a period of 3 years on the excess allowance exceeding the cost of the line
extension.
Schedule Page: 232 Line No.: 2 Column: a
Recognition of the overfunded and underfunded status of a defined benefit postretirement plan based on ASC 715 for
financial reporting.
Schedule Page: 232 Line No.: 3 Column: a
Amortized over remaining book life of pre-1986 vintage assets. Amortization amount varies yearly.
Schedule Page: 232 Line No.: 6 Column: a
Amortization for TDG Idaho ended on December 2019. Spokane River relicensing amortization costs will end on
11/30/2020.
Schedule Page: 232 Line No.: 7 Column: a
Washington Docket UE-080416 & Idaho Order AVU-E-08-01. Amortization thru 2059.
Schedule Page: 232 Line No.: 8 Column: a
Decoupling revenue deferrals are recognized during the period they occur, subject to certain limitations. Revenue is
expected to be collected within 24 months of the deferral.
Schedule Page: 232 Line No.: 9 Column: a
For Washington Electric, we are currently deferring ARO expenses. Amortization period to be determined. For Idaho
Electric, amortization is for 34 years as per Order 34276, AVU-E-18-03.
Schedule Page: 232 Line No.: 10 Column: a
Washington Docket# UE-002066 and Idaho Order# 28648.
Schedule Page: 232 Line No.: 11 Column: a
Reclass of Regulatory Assets related to Colstrip to state jurisdictions.
Schedule Page: 232 Line No.: 12 Column: a
Quarterly adjustments to workers comp reserve for current unpaid claims.
Schedule Page: 232 Line No.: 13 Column: a
Settled swaps are amortized over the life of the associated debt.
Schedule Page: 232 Line No.: 14 Column: a
Amortization period varies depending on timing of transactions.
Schedule Page: 232 Line No.: 15 Column: a
Amortization period varies depending on underlying transactions.
Schedule Page: 232 Line No.: 16 Column: a
Washington Docket Nos. UE-180418, UG-180419
Schedule Page: 232 Line No.: 17 Column: a
Avista is a participant in the Residential Exchange Program with Bonnevile Power Administration. Customers served
under Schedules 1, 12, 22, 32 and 48 are given a rate adjustment based on Schedule 59 for Washington and Idaho.
Amortization is based on customer usage.
Schedule Page: 232 Line No.: 18 Column: a
Idaho Order# 33494, Docket Nos. AVU-E-16-01 and Stipulation and Settlement Docket# AVU-E-19-04
Schedule Page: 232 Line No.: 19 Column: a
Deferring the difference between FERC formula and State approved AFUDC rates primarily from 2010-2017.
Schedule Page: 232 Line No.: 21 Column: a
Washington Docket Nos. UE-180418 and UG-180419. Amortization period to be determined.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
FOOTNOTE DATA
FERC FORM NO. 2 (12-96)Page 552.1
Miscellaneous Deferred Debits (Account 186)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Description of Miscellaneous
Deferred Debits
(a)
Balance at
Beginning
of Year
(b)
1. Report below the details called for concerning miscellaneous deferred debits.
2. For any deferred debit being amortized, show period of amortization in column (a).
3. Minor items (less than $250,000) may be grouped by classes.
Balance at
End of Year
(f)
Debits
(c)
Credits
Account
Charged
(d)
Credits
Amount
(e)
1
1,110,999 1,110,999Colstrip Common Facility 2
2,355,642 2,355,642Colstrip Common Facility 3
4,815,987 1,119,286 3,696,701Plant Alloc of Clearing Journal 4
8,132 8,132Intercompany Clearing 5
496,981 26,488 470,493Misc. Deferred Debits (AN) 6
540,265 540,265Misc. Deferred Debits (WA) 7
12,449,795 8,551,769 21,001,564 VARReg Asset - Decoupling Deferred 8
836,724 836,724 407Deferred Proj Compass - ID 4 yr 9
30,975 23,231 54,206 506Reg Asset ID-Lake CDA 10 yr amt 10
46,298 46,298Conservation Project Programs 11
5,188 124,313 129,501 557Nez Perce Settlement 12
499,633 22,587 522,220 VARSubsidiary Billings 13
446,807 310,777 757,584 VARMisc. Work Orders <$40,000 14
68,945 989 67,956Aurora Solar Project #59 15
6,156 54,795 60,951 VARBuild Farm Taps 16
110,267 26,187 84,080Clarkston Hts Solar Project#60 17
36,639 59,743 96,382 VARCredit Union Labor & Expenses 18
( 66,045) 17,737( 83,782)Optional Wind Power 19
76,518 76,518Smart Hoist Suspense 20
( 226,818) 33,864( 260,682)Timber Harvest Revenue 21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
Miscellaneous Work in Progress 39
18,484,386 14,311,917 1,895,764 30,900,539Total 40
Page 233FERC FORM NO. 2 (12-96)

This Page Intentionally Left Blank
1. Report the information called for below concerning the respondent's accounting for deferred income taxes.
2. At Other (Specify), include deferrals relating to other income and deductions.
3. Provide in a footnote a summary of the type and amount of deferred income taxes reported in the beginning-of-year and end-of-year balances for deferred income
taxes that the respondent estimates could be included in the development of jurisdictional recourse rates.
Accumulated Deferred Income Taxes (Account 190)
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Account Subdivisions
(a)
Changes During
Year
Amounts Credited
to Account 411.1
(d)
Balance at
Beginning
of Year
(b)
Changes During
Year
Amounts Debited
to Account 410.1
(c)
Account 190 1
897,420( 3,094,028) 14,294,336Electric 2
1,250,052 400,638 3,071,820Gas 3
329,230 315,420 170,084,364Other (Define) (footnote details) 4
2,476,702( 2,377,970) 187,450,520Total (Total of lines 2 thru 4) 5
Other (Specify) (footnote details) 6
2,476,702( 2,377,970) 187,450,520TOTAL Account 190 (Total of lines 5 thru 6) 7
Classification of TOTAL 8
2,476,702( 2,377,970) 187,450,520Federal Income Tax 9
State Income Tax 10
Local Income Tax 11
Page 234FERC FORM NO. 2 (REV 12-07)
Accumulated Deferred Income Taxes (Account 190) (continued)
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Adjustments
Debits
Account No.
(g)
Changes During
Year
Amounts Debited
to Account 410.2
(e)
Changes During
Year
Amounts Credited
to Account 411.2
(f)
Adjustments
Debits
Amount
(h)
Adjustments
Credits
Account No.
(i)
Adjustments
Credits
Amount
(j)
Balance at
End of Year
(k)
1
20,510,338 1,920,914( 303,640) 2
3,791,114 184,970( 54,850) 3
152,755,074 19,046,892 196,940( 1,506,852) 4
177,056,526 1,920,914 19,231,862 196,940( 1,865,342) 5
6
177,056,526 1,920,914 19,231,862 196,940( 1,865,342) 7
8
177,056,526 1,920,914 19,231,862 196,940( 1,865,342) 9
10
11
Page 235FERC FORM NO. 2 (REV 12-07)
Capital Stock (Accounts 201 and 204)
1. Report below the details called for concerning common and preferred stock at end of year, distinguishing separate series of any general class. Show separate totals for common and
preferred stock.
2. Entries in column (b) should represent the number of shares authorized by the articles of incorporation as amended to end of year.
3. Give details concerning shares of any class and series of stock authorized to be issued by a regulatory commission which have not yet been issued.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Class and Series of Stock and
Name of Stock Exchange
(a)
Call Price at
End of Year
(d)
Number of Shares
Authorized by Charter
(b)
Par or Stated Value
per Share
(c)
Acct. 201 - Common Stock Issued: 1
200,000,000 2
Restriced shares 3
TOTAL Common 200,000,000 4
5
6
Account 204 - Preferred Stock Issued 10,000,000 7
8
Total Preferred 10,000,000 9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Page 250FERC FORM NO. 2 (12-96)
Capital Stock (Accounts 201 and 204)
4. The identification of each class of preferred stock should show the dividend rate and whether the dividends are cumulative or noncumulative.
5. State in a footnote if any capital stock that has been nominally issued is nominally outstanding at end of year.
6. Give particulars (details) in column (a) of any nominally issued capital stock, reacquired stock, or stock in sinking and other funds which is pledged, stating name of pledgee and
purpose of pledge.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Outstanding per Bal. Sheet
(total amt outstanding
without reduction for amts
held by respondent)
Shares
(e)
Held by
Respondent
As Reacquired
Stock (Acct 217)
Cost
(h)
Outstanding per Bal.
Sheet
Amount
(f)
Held by
Respondent
As Reacquired
Stock (Acct 217)
Shares
(g)
Held by
Respondent
In Sinking and
Other Funds
Amount
(j)
Held by
Respondent
In Sinking and
Other Funds
Shares
(i)
1
3,824,590.00 93,351.00 1,176,498,977 67,176,996 2
3
3,824,590.00 93,351.00 1,176,498,977 67,176,996 4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Page 251FERC FORM NO. 2 (12-96)
Other Paid-In Capital (Accounts 208-211)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Item
(a)
1. Report below the balance at the end of the year and the information specified below for the respective other paid-in capital accounts.
Provide a subheading for each account and show a total for the account, as well as a total of all accounts for reconciliation with the
balance sheet, page 112. Explain changes made in any account during the year and give the accounting entries effecting such change.
(a) Donations Received from Stockholders (Account 208) - State amount and briefly explain the origin and purpose of each donation.
(b) Reduction in Par or Stated Value of Capital Stock (Account 209) - State amount and briefly explain the capital changes that gave
rise to amounts reported under this caption including identification with the class and series of stock to which related.
(c) Gain or Resale or Cancellation of Reacquired Capital Stock (Account 210) - Report balance at beginning of year, credits, debits,
and balance at end of year with a designation of the nature of each credit and debit identified by the class and series of stock to which
related.
(d) Miscellaneous Paid-In Capital (Account 211) - Classify amounts included in this account according to captions that, together with
brief explanations, disclose the general nature of the transactions that gave rise to the reported amounts.
Amount
(b)
( 10,696,711)Equity transactions of subsidiaries 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
( 10,696,711)Total 40
Page 253FERC FORM NO. 2 (12-96)

This Page Intentionally Left Blank
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
DISCOUNT ON CAPITAL STOCK (ACCOUNT 213)
1. Report the balance at end of year of discount on capital stock for each class and series of capital stock. Use as many rows as necessary to report all data.
2. If any change occurred during the year in the balance with respect to any class or series of stock, attach a statement giving details of the change. State the reason for any charge-off
during the year and specify the account charged.
Line
No.
Class and Series of Stock
(a)
Balance at
End of Year
(b)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
TOTAL
Class and Series of Stock
(a)
Balance at
End of Year
(b)
CAPITAL STOCK EXPENSE (ACCOUNT 214)
Line
No.
1. Report the balance at end of year of capital stock expenses for each class and series of capital stock. Use as many rows as necessary to report all data. Number the rows in
sequence starting from the last row number used for Discount on Capital Stock above.
2. If any change occurred during the year in the balance with respect to any class or series of stock, attach a statement giving details of the change. State the reason for any charge-off
of capital stock expense and specify the account charged.
( 44,938,398)Common Stock-No Par 16
17
18
19
20
21
22
23
24
25
26
27
28
( 44,938,398)TOTAL
Page 254FERC FORM NO. 2 (12-96)
1. Furnish a supplemental statement briefly describing security financing and refinancing transactions during the year and the accounting for the
securities, discounts, premiums, expenses, and related gains or losses. Identify as to Commission authorization numbers and dates.
2. Provide details showing the full accounting for the total principal amount, par value, or stated value of each class and series of security
issued, assumed, retired, or refunded and the accounting for premiums, discounts, expenses, and gains or losses relating to the securities. Set
forth the facts of the accounting clearly with regard to redemption premiums, unamortized discounts, expenses, and gain or losses relating to
securities retired or refunded, including the accounting for such amounts carried in the respondent's accounts at the date of the refunding or
refinancing transactions with respect to securities previously refunded or retired.
3. Include in the identification of each class and series of security, as appropriate, the interest or dividend rate, nominal date of issuance,
maturity date, aggregate principal amount, par value or stated value, and number of shares. Give also the issuance of redemption price and
name of the principal underwriting firm through which the security transactions were consummated.
4. Where the accounting for amounts relating to securities refunded or retired is other than that specified in General Instruction 17 of the Uniform
System of Accounts, cite the Commission authorization for the different accounting and state the accounting method. 5. For securities assumed, give the name of the company for which the liability on the securities was assumed as well as details of the
transactions whereby the respondent undertook to pay obligations of another company. If any unamortized discount, premiums, expenses, and
gains or losses were taken over onto the respondent's books, furnish details of these amounts with amounts relating to refunded securities clearly
earmarked.
In November 2019, the Company issued and sold $180.0 million of 3.43 percent first mortgage bonds due in
2049 pursuant to a bond purchase agreement with institutional investors in the private placement market. The
total net proceeds from the sale of the bonds were used to repay maturing long-term debt of $90.0 million, repay
a portion of the outstanding balance under Avista Corp.'s $400.0 million committed line of credit and for other
general corporate purposes. In connection with the issuance and sale of the first mortgage bonds, the Company
cash settled six interest rate swap derivatives (notional aggregate amount of $70.0 million) and paid a net
amount of $13.3 million. See note 7 for a discussion of interest rate swap derivatives.
The new issuance is based on the following state commission orders:
1. Order of the Washington Utilities and Transportation Commission in Docket No. 171210 entered
January 11, 2018;
2. Order of the Idaho Public Utilities Commission, Order No. 33978 entered January 30, 2018;
3. Order of the Public Utility Commission of Oregon, Order No. 19-249, entered July 30, 2019;
Order of the Public Service Commission of the State of Montana, Default Order No. 4535
We issued equity in 2019 for total net proceeds of $64.6 million. Most of these issuances came through our four separate sales agency
agreements under which the sales agents may offer and sell new shares of our common stock from time to time. These agreements
provide for the offering of a maximum of 4.6 million shares, of which approximately 3.2 million remain unissued as of December 31,
2019. In 2019, 1.4 million shares were issued under these agreements resulting in total net proceeds of $63.6 million. Subject to the
satisfaction of customary conditions (including any required regulatory approvals), we have the right to increase the maximum
number of shares that may be offered under these agreements. These agreements expire on February 29, 2020. We expect to negotiate
and enter into new sales agency agreements in the second quarter of 2020.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
Securities Issued or Assumed and Securities Refunded or Retired During the Year
FERC FORM NO. 2 (12-96)255.1
Date of
Maturity
(c)
Long-Term Debt (Accounts 221, 222, 223, and 224)
1. Report by Balance Sheet Account the details concerning long-term debt included in Account 221, Bonds, 222, Reacquired Bonds, 223, Advances from Associated Companies, and
224, Other Long-Term Debt.
2. For bonds assumed by the respondent, include in column (a) the name of the issuing company as well as a description of the bonds.
3. For Advances from Associated Companies, report separately advances on notes and advances on open accounts. Designate demand notes as such. Include in column (a) names of
associated companies from which advances were received.
4. For receivers' certificates, show in column (a) the name of the court and date of court order under which such certificates were issued.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Class and Series of Obligation and
Name of Stock Exchange
(a)
Outstanding
(Total amount
outstanding without
reduction for amts
held by respondent)
(d)
Nominal Date
of Issue
(b)
FMBS - SERIES A - 7.53% DUE 05/05/2023 5,500,00005/05/202305/06/1993 1
FMBS - SERIES A - 7.54% DUE 5/05/2023 1,000,00005/05/202305/07/1993 2
FMBS - SERIES A - 7.18% DUE 8/11/2023 7,000,00008/11/202308/12/1993 3
ADVANCE ASSOCIATED-AVISTA CAPITAL II (ToPRS) 51,547,00006/01/203706/03/1997 4
FMBS - 6.37% SERIES C 25,000,00006/19/202806/19/1998 5
FMBS - 5.45% SERIES 90,000,00012/01/201911/18/2004 6
Discount- FMBS - 5.45% SERIES 7
FMBS - 6.25% SERIES 150,000,00012/01/203511/17/2005 8
Discount- FMBS - 6.25% SERIES 9
FMBS - 5.70% SERIES 150,000,00007/01/203712/15/2006 10
Discount- FMBS - 5.70% SERIES 11
FMBS - 5.125% SERIES 250,000,00004/01/202209/22/2009 12
Discount- FMBS - 5.125% SERIES 13
COLSTRIP 2010A PCRBs DUE 2032 66,700,00010/01/203212/15/2010 14
COLSTRIP 2010B PCRBs DUE 2034 17,000,00003/01/203412/15/2010 15
FMBS - 3.89% SERIES 52,000,00012/20/202012/20/2010 16
FMBS - 5.55% SERIES 35,000,00012/20/204012/20/2010 17
4.45% SERIES DUE 12-14-2041 85,000,00012/14/204112/14/2011 18
4.23% SERIES DUE 11-29-2047 80,000,00011/29/204711/30/2012 19
FMBS- 4.11% SERIES 60,000,00012/01/204412/18/2014 20
FMBS- 4.37% SERIES 100,000,00012/01/204512/16/2015 21
FMBS- 3.54% SERIES 175,000,00012/01/205112/15/2016 22
FMBS 3.91% SERIES 90,000,00012/01/204712/14/2017 23
FMBS 4.35% SERIES 375,000,00006/01/204805/22/2018 24
FMBS 3.43% SERIES 180,000,00012/01/204911/26/2019 25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
2,045,747,00040 TOTAL
Page 256FERC FORM NO. 2 (12-96)
Held by
Respondent
Reacquired Bonds
(Acct 222)
(g)
Long-Term Debt (Accounts 221, 222, 223, and 224)
5. In a supplemental statement, give explanatory details for Accounts 223 and 224 of net changes during the year. With respect to long-term advances, show for each company: (a)
principal advanced during year (b) interest added to principal amount, and (c) principal repaid during year. Give Commission authorization numbers and dates.
6. If the respondent has pledged any of its long-term debt securities, give particulars (details) in a footnote, including name
of the pledgee and purpose of the pledge.
7. If the respondent has any long-term securities that have been nominally issued and are nominally outstanding at end of year, describe such securities in a footnote.
8. If interest expense was incurred during the year on any obligations retired or reacquired before end of year, include such interest expense in column (f). Explain in a footnote any
difference between the total of column (f) and the total Account 427, Interest on Long-Term Debt and Account 430, Interest on Debt to Associated Companies.
9. Give details concerning any long-term debt authorized by a regulatory commission but not yet issued.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Interest for
Year
Rate
(in %)
(e)
Redemption Price
per $100 at
End of Year
(i)
Interest for
Year
Amount
(f)
Held by
Respondent
Sinking and
Other Funds
(h)
414,150 7.530 1
75,400 7.540 2
502,600 7.180 3
1,342,492 2.788 4
1,592,500 6.370 5
4,496,250 5.450 6
7
9,375,000 6.250 8
9
8,550,000 5.700 10
11
12,812,500 5.125 12
13
1,109,577 1.770 14
282,833 1.770 15
2,022,800 3.890 16
1,942,500 5.550 17
3,782,500 4.450 18
3,384,000 4.230 19
2,466,000 4.110 20
4,370,000 4.370 21
6,195,000 3.540 22
3,519,000 3.910 23
16,312,500 4.350 24
600,250 3.430 25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
85,147,85240
Page 257FERC FORM NO. 2 (12-96)
Schedule Page: 256 Line No.: 3 Column: a
Upon Issuance Avista Capital II issued 1.5 million of common trust securties to the Company. In December 2000, the
Company purchased 10.0 million of these preferred Trust Securities. The interst for the year disclosed in column (i)
reflects the net amount owed to third parties.
Schedule Page: 256 Line No.: 14 Column: a
The Company reacquired this debt in 2010. These bonds have not been retired or canceled.
Schedule Page: 256 Line No.: 15 Column: a
The Company reacquired this debt in 2010. These bonds have not been retired or canceled.
Schedule Page: 256 Line No.: 25 Column: a
The new issuance is based on the following state commission orders:
1. Order of the Washington Utilities and Transportation Commission in Docket No.U-171210 entered
January 11, 2018;
2. Order of the Idaho Public Utilities Commission ,Order No. 33978 entered January 30, 2018;
3. Order of the Public Utility Commission of Oregon, Order No. 19-249, entered July 30, 2019
Order of the Public Service Commission of the State of Montana, Default Order No. 4535
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
FOOTNOTE DATA
FERC FORM NO. 2 (12-96)Page 552.1

This Page Intentionally Left Blank
Unamortized Debt Expense, Premium and Discount on Long-Term Debt (Accounts 181, 225, 226)
1. Report under separate subheadings for Unamortized Debt Expense, Unamortized Premium on Long-Term Debt and Unamortized Discount on Long-Term Debt, details of expense,
premium or discount applicable to each class and series of long-term debt.
2. Show premium amounts by enclosing the figures in parentheses.
3. In column (b) show the principal amount of bonds or other long-term debt originally issued.
4. In column (c) show the expense, premium or discount with respect to the amount of bonds or other long-term debt originally issued.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Designation of
Long-Term Debt
(a)
Amortization
Period
Date From
(d)
Principal Amount
of Debt Issued
(b)
Total Expense
Premium or
Discount
(c)
Amortization
Period
Date To
(e)
05/05/202305/06/1993 42,712 5,500,000FMBS - SERIES A - 7.53% DUE 05/05/2023 1
05/05/202305/07/1993 7,766 1,000,000FMBS - SERIES A - 7.54% DUE 5/05/2023 2
08/11/202308/12/1993 54,364 7,000,000FMBS - SERIES A - 7.18% DUE 8/11/2023 3
06/01/203706/03/1197 1,296,086 51,547,000ADVANCE ASSOCIATED-AVISTA CAPITAL II (ToPRS) 4
06/19/202806/19/1998 158,304 25,000,000FMBS - 6.37% SERIES C 5
12/01/201911/18/2004 1,432,081 90,000,000FMBS - 5.45% SERIES 6
12/01/203511/17/2005 2,180,435 150,000,000FMBS - 6.25% SERIES 7
07/01/203712/15/2006 4,924,304 150,000,000FMBS - 5.70% SERIES 8
04/01/202209/22/2009 2,859,788 250,000,000FMBS - 5.125% SERIES 9
12/20/202012/20/2010 385,129 52,000,000FMBS - 3.89% SERIES 10
12/20/204012/20/2010 258,834 35,000,000FMBS - 5.55% SERIES 11
04/18/201912/14/2011 5,070,271Short-Term Credit Facility 12
12/14/204112/14/2011 692,833 85,000,0004.45% SERIES DUE 12-14-2041 13
11/29/204711/30/2012 730,833 80,000,0004.23% SERIES DUE 11-29-2047 14
12/01/204412/18/2014 428,205 60,000,0004.11% Seires Due 12-1-2044 15
12/01/204512/16/2015 590,761 100,000,0004.37% Series Due 12-1-2045 16
12/01/205112/15/2016 1,042,569 175,000,0003.54% Series Due 12-1-2051 17
12/01/204712/14/2017 552,539 90,000,0003.91% Series Due 12-1-2047 18
06/01/204806/01/2018 4,625,198 375,000,0004.35% Series due 6-1-2048 19
12/01/204912/01/2019 1,113,113 180,000,0003.43% Series Due 12-1-2049 20
12/01/203509/30/2005 71,646Rathrum 2005 21
08/01/203508/01/2005 858Debt Strategies 22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Page 258FERC FORM NO. 2 (12-96)
Unamortized Debt Expense, Premium and Discount on Long-Term Debt (Accounts 181, 225, 226)
5. Furnish in a footnote details regarding the treatment of unamortized debt expense, premium or discount associated with issues redeemed during the year. Also, give in a footnote the
date of the Commission's authorization of treatment other than as specified by the Uniform System of Accounts.
6. Identify separately undisposed amounts applicable to issues which were redeemed in prior years.
7. Explain any debits and credits other than amortization debited to Account 428, Amortization of Debt Discount and Expense, or credited to Account 429, Amortization of Premium on
Debt-Credit.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Balance at
Beginning
of Year
(f)
Debits During
Year
(g)
Credits During
Year
(h)
Balance at
End of Year
(i)
4,863 1,424 6,287 1
884 259 1,143 2
6,645 1,812 8,457 3
245,258 14,015 259,273 4
44,853 5,277 50,130 5
85,961 85,961 6
1,161,102 72,569 1,233,671 7
2,831,471 161,032 2,992,503 8
530,972 227,561 758,533 9
38,620 38,619 77,239 10
181,189 8,628 189,817 11
579,108 434,332 1,013,440 12
508,286 23,104 531,390 13
583,071 20,886 603,957 14
357,055 14,282 371,337 15
512,239 19,702 531,941 16
953,402 29,794 983,196 17
515,830 18,423 534,253 18
4,382,258 153,764 4,536,022 19
1,110,034 1,543 1,111,577 20
37,898 2,368 40,266 21
447 29 476 22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Page 259FERC FORM NO. 2 (12-96)
Unamortized Loss and Gain on Reacquired Debt (Accounts 189, 257)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Designation of
Long-Term Debt
(a)
Date
Reacquired
(b)
1. Report under separate subheadings for Unamortized Loss and Unamortized Gain on Reacquired Debt, details of gain and loss,
including maturity date, on reacquisition applicable to each class and series of long-term debt. If gain or loss resulted from a refunding
transaction, include also the maturity date of the new issue.
2. In column (c) show the principal amount of bonds or other long-term debt reacquired.
3. In column (d) show the net gain or net loss realized on each debt reacquisition as computed in accordance with General Instruction
17 of the Uniform Systems of Accounts.
4. Show loss amounts by enclosing the figures in parentheses.
5. Explain in a footnote any debits and credits other than amortization debited to Account 428.1, Amortization of Loss on Reacquired
Debt, or credited to Account 429.1, Amortization of Gain on Reacquired Debt-Credit.
Balance at
End of Year
(f)
Principal
of Debt
Reacquired
(c)
Net Gain or
Loss
(d)
Balance at
Beginning
of Year
(e)
( 183,104)( 227,340)( 4,695,395)05/10/1993Misc Debt Repurchases I 1
849,993 898,797 1,769,12512/18/2000
ADVANCE ASSOCIATED-AVISTA CAPITAL II
(ToPRS)
2
412,393 464,484 2,228,15312/31/2002Misc 2002 Repurchase 3
71,860 78,860 315,27412/31/2003Misc 2003 Repurchase 4
5
( 497,013)( 532,018)( 1,700,371)12/31/2005Misc 2005 Repurchase 6
7
10,922 13,617 43,13212/31/2008Misc 2008 Repurchase Costs 8
( 534,974)( 764,248)( 2,875,817)04/01/2009AVA Capital Trust III (2022) 9
( 1,997,737)( 2,153,404)( 3,709,174)12/14/2010COLSTRIP 2010A PCRBs DUE 2032 10
( 1,171,994)( 1,254,488)( 1,916,297)12/14/2010COLSTRIP 2010B PCRBs DUE 2034 11
( 3,684,675)( 3,860,136)( 5,263,822)12/20/2010FMBS - 7.25% SERIES (2040) 12
( 627,366)( 1,254,733)( 6,273,664)12/20/2010FMBS - 6.125% SERIES (2020) 13
( 83,766)( 86,767)( 105,020)06/28/2012KETTLE FALLS P C REV BONDS DUE 14 (2047) 14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Page 260FERC FORM NO. 2 (12-96)
Reconciliation of Reported Net Income with Taxable Income for Feder Income Taxes
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Details
(a)
1. Report the reconciliation of reported net income for the year with taxable income used in computing Federal Income Tax accruals
and show computation of such tax accruals. Include in the reconciliation, as far as practicable, the same detail as furnished on Schedule
M-1 of the tax return for the year. Submit a reconciliation even though there is no taxable income for the year. Indicate clearly the
nature of each reconciling amount.
2. If the utility is a member of a group that files consolidated Federal tax return, reconcile reported net income with taxable net income
as if a separate return were to be filed, indicating, however, intercompany amounts to be eliminated in such a consolidated return. State
names of group members, tax assigned to each group member, and basis of allocation, assignments, or sharing of the consolidated tax
among the group members.
Amount
(b)
191,949,607Net Income for the Year (Page 116) 1
Reconciling Items for the Year 2
3
Taxable Income Not Reported on Books 4
8,218,407 5
6
7
8,218,407TOTAL 8
Deductions Recorded on Books Not Deducted for Return 9
264,780,968 10
23,748,485Federal Income Tax Expense 11
671,886State Income Tax Expense Adj 12
289,201,339TOTAL 13
Income Recorded on Books Not Included in Return 14
( 16,761,381) 15
16
17
( 16,761,381)TOTAL 18
Deductions on Return Not Charged Against Book Income 19
( 392,739,644) 20
21
22
( 13,582,269)Equity in Sub Earnings 23
734,005Corporate Overhead Unallocated Subs 24
25
( 405,587,908)TOTAL 26
67,020,064Federal Tax Net Income 27
Show Computation of Tax: 28
29
14,074,213Federal Tax at 21% 30
31
89,757Prior Year True Ups 32
33
14,163,970Total Federal Tax Expense 34
35
Page 261FERC FORM NO. 2 (12-96)
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
1. Give details of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during the year. Do not include gasoline and other
sales taxes which have been charged to the accounts to which the taxed material was charged. If the actual or estimated amounts of such taxes are known, show the amounts in a
footnote and designate whether estimated or actual amounts.
2. Include on this page, taxes paid during the year and charged direct to final accounts, (not charged to prepaid or accrued taxes). Enter the amounts in both columns (d) and (e). The
balancing of this
page is not affected by the inclusion of these taxes.
3. Include in column (d) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued, (b) amounts credited to the
portion of prepaid taxes charged to current year, and (c) taxes paid and charged direct to operations or accounts other than accrued and prepaid tax accounts.
4. List the aggregate of each kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Kind of Tax
(See Instruction 5)
(a)
Balance at
Beg. of Year
Prepaid Taxes
(c)
Balance at
Beg. of Year
Taxes Accrued
(b)
FEDERAL: 1
247,648Income Tax 2014 2
( 520,411)Income Tax 2016 3
Income Tax (2017) 4
3,137,410Income Tax (2018) 5
Income Tax (Current) 6
Prior Retained Earnings 7
Current Retained Earnings 8
2,864,647 Total Federal 9
10
STATE OF WASHINGTON 11
18,657,279Property Tax (2018) 12
Property Tax (2019) 13
892,951Excise Tax (2016) 14
2,615,663Excise Tax (2018) 15
Excise Tax (2019) 16
496Natural Gas Use Tax 17
2,802,731Municipal Occupation Tax 18
( 22,706)Community Solar 19
92,145Sales & Use Tax (2018) 20
Sales & Use Tax (2019) 21
25,038,559 Total Washington 22
23
STATE OF IDAHO: 24
133,757Income Tax (2018) 25
Income Tax (2019) 26
25,046 3,983,497Property Tax (2018) 27
Property Tax (2019) 28
4,093Sales & Use Tax (2018) 29
Sales & Use Tax (2019) 30
31,827KWH Tax (2018) 31
KWH Tax (2019) 32
( 1)Franchise Tax (2017) 33
1,019,285Franchise Tax (2018) 34
Franchise Tax (2019) 35
25,046 5,172,458 Total Idaho 36
37
STATE OF MONTANA 38
3,640Income Tax (2018) 39
Page 262aFERC FORM NO. 2 (REV 12-07)
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
5. If any tax (exclude Federal and State income taxes) covers more than one year, show the required information separately for each tax year, identifying the year in column (a).
6. Enter all adjustments of the accrued and prepaid tax accounts in column (f) and explain each adjustment in a footnote. Designate debit adjustments by parentheses.
7. Do not include on this page entries with respect to deferred income taxes or taxes collected through payroll deductions or otherwise pending transmittal of such taxes to the taxing
authority.
8. Show in columns (i) thru (p) how the taxes accounts were distributed. Show both the utility department and number of account charged. For taxes charged to utility plant, show the
number of the appropriate balance sheet plant account or subaccount.
9. For any tax apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax.
10. Items under $250,000 may be grouped.
11. Report in column (q) the applicable effective state income tax rate.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Balance at
End of Year
Prepaid Taxes
(Included in Acct 165)
(h)
Balance at
End of Year
Taxes Accrued
(Account 236)
(g)
Taxes Charged
During Year
(d)
Taxes Paid
During Year
(e)
Adjustments
(f)
1
247,648 2
( 520,411) 3
( 104,399)( 622,137)( 104,399) 4
( 1,252,305) 1 4,343,261( 668,591) 5
( 6,543,388) 20,801,640 14,258,252 6
7
8
( 8,172,855) 1 24,522,764 13,485,262 9
10
11
5,584 16,386,052( 2,265,643) 12
18,740,467 18,740,467 13
892,951 14
2,658,281 42,618 15
2,915,002 24,251,919 27,166,921 16
490( 1) 3,216 3,211 17
3,130,051 23,887,401 24,214,721 18
( 31,729)( 598,266)( 607,289) 19
2,669 89,476 20
286,528 1,130,161 1,416,689 21
25,942,013( 1) 67,808,240 68,711,695 22
23
24
147,821 14,064 25
( 319,616) 330,000 10,384 26
3,983,547 50 27
3,817,356 3,867,706 7,685,062 28
4,093 29
9,341 125,660 135,001 30
27,952( 3,875) 31
26,277 345,991 372,268 32
1 33
21 1,019,264 34
1,103,281 3,559,640 4,662,921 35
( 319,616) 4,956,276 1 13,411,674 12,875,875 36
37
38
5,815 2,175 39
Page 263aFERC FORM NO. 2 (REV 12-07)
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
1. Give details of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during the year. Do not include gasoline and other
sales taxes which have been charged to the accounts to which the taxed material was charged. If the actual or estimated amounts of such taxes are known, show the amounts in a
footnote and designate whether estimated or actual amounts.
2. Include on this page, taxes paid during the year and charged direct to final accounts, (not charged to prepaid or accrued taxes). Enter the amounts in both columns (d) and (e). The
balancing of this
page is not affected by the inclusion of these taxes.
3. Include in column (d) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued, (b) amounts credited to the
portion of prepaid taxes charged to current year, and (c) taxes paid and charged direct to operations or accounts other than accrued and prepaid tax accounts.
4. List the aggregate of each kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Other Income and
Deductions
(Account 408.2,
409.2)
(l)
Other Utility Dept.
(Account 408.1,
409.1)
(k)
Electric
(Account 408.1,
409.1)
(i)
Gas
(Account 408.1,
409.1)
(j)
DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.)
1
2
3
( 400,694) 4
484,878 5,573 5
( 8,423,775)( 6,449,342) 7,388,769 6
7
8
( 8,339,591)( 6,449,342) 7,394,342 9
10
11
74,881( 478,519)( 1,863,845) 12
88,009 3,843,996 14,808,462 13
14
10,458( 949) 33,109 15
88,774 5,653,185 21,424,963 16
3,211 17
5,242,186 18,880,001 18
19
20
21
262,122 14,259,899 53,285,901 22
23
24
2,110 11,954 25
( 131,297)( 85,355)( 483,678) 26
50 27
50,181 1,655,639 6,017,580 28
29
30
( 3,875) 31
373,583 32
33
34
1,126,190 3,543,617 35
( 81,116) 2,698,584 9,459,231 36
37
38
2,175 39
Page 262bFERC FORM NO. 2 (REV 12-07)
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
5. If any tax (exclude Federal and State income taxes) covers more than one year, show the required information separately for each tax year, identifying the year in column (a).
6. Enter all adjustments of the accrued and prepaid tax accounts in column (f) and explain each adjustment in a footnote. Designate debit adjustments by parentheses.
7. Do not include on this page entries with respect to deferred income taxes or taxes collected through payroll deductions or otherwise pending transmittal of such taxes to the taxing
authority.
8. Show in columns (i) thru (p) how the taxes accounts were distributed. Show both the utility department and number of account charged. For taxes charged to utility plant, show the
number of the appropriate balance sheet plant account or subaccount.
9. For any tax apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax.
10. Items under $250,000 may be grouped.
11. Report in column (q) the applicable effective state income tax rate.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Other
(p)
Adjustment to Ret.
Earnings
(Account 439)
(o)
Extraordinary Items
(Account 409.3)
(m)
Other Utility Opn.
Income
(Account 408.1,
409.1)
(n)
DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.)
State/Local
Income Tax
Rate
(q)
1
2
3
296,295 4
( 1,159,042) 5
338,181 21,404,419 6
7
8
( 524,566) 21,404,419 9
10
11
1,839 12
13
14
15
16
17
92,534 18
( 607,289) 19
20
1,416,689 21
903,773 22
23
24
1.46 25
1.46 710,714 26
27
( 38,338) 28
29
135,001 30
31
( 1,315) 32
33
34
( 6,886) 35
88,462 710,714 36
37
38
0.37 39
Page 263bFERC FORM NO. 2 (REV 12-07)
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Kind of Tax
(See Instruction 5)
(a)
Balance at
Beg. of Year
Prepaid Taxes
(c)
Balance at
Beg. of Year
Taxes Accrued
(b)
Income Tax (2019) 1
5,567,637Property Tax (2018) 2
Property Tax (2019) 3
Colstrip Generation Tax 4
247,559KWH Tax (2018) 5
KWH Tax (2019) 6
60Consumer Council Fee 7
19Public Commission Fee 8
5,818,915 Total Montana 9
10
STATE OF OREGON 11
Income Tax (2019) 12
3,952,413Property Tax (2018) 13
Property Tax (2019) 14
955,373Franchise Tax (2018) 15
Franchise Tax (2019) 16
3,952,413 955,373 Total Oregon 17
18
STATE OF CALIFORNIA 19
Income Tax (2019) 20
Total California 21
22
MISCELLANEOUS STATES: 23
1Income Tax (2017) 24
Income Tax (2019) 25
1 Total Misc States 26
27
MISCELLANEOUS OTHER 28
CTR Credit for 2019 29
25,046Misc/Distribution 30
Timber Excise Tax 31
( 42,537)WA Renewable Energy 32
3,007Thermal Fuel Tax 33
( 14,484) Total County 34
35
36
37
38
39
3,977,459 39,835,469TOTAL
Page 262a.1FERC FORM NO. 2 (REV 12-07)
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Balance at
End of Year
Prepaid Taxes
(Included in Acct 165)
(h)
Balance at
End of Year
Taxes Accrued
(Account 236)
(g)
Taxes Charged
During Year
(d)
Taxes Paid
During Year
(e)
Adjustments
(f)
( 124,334) 360,000 235,666 1
5,567,637 2
5,767,811 1 5,784,643 11,552,453 3
2,863 2,863 4
247,559 5
226,610 854,170 1,080,780 6
15 27( 18) 7
51 86 118 8
( 124,334) 5,994,487 1 12,822,800 12,874,037 9
10
11
100,000 100,000 12
3,952,413 13
( 3,759,647) 1 7,519,140 3,759,492 14
43,414( 1) 911,958 15
1,046,390 2,590,653 3,637,043 16
( 3,759,647) 1,089,804 11,121,751 11,448,948 17
18
19
1,600 1,600 20
1,600 1,600 21
22
23
( 1) 24
( 1,590) 2,050 460 25
( 1,590)( 1) 2,050 460 26
27
28
( 1,553)( 1,553) 29
33,158( 25,047)( 1,839) 31,320 30
31
25,046( 1,841,624)( 1,824,133) 32
7,180 65,754 69,927 33
40,338( 1)( 1,779,262)( 1,724,439) 34
35
36
37
38
39
( 12,378,042) 38,022,918 127,911,617 117,673,438TOTAL
Page 263a.1FERC FORM NO. 2 (REV 12-07)
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Other Income and
Deductions
(Account 408.2,
409.2)
(l)
Other Utility Dept.
(Account 408.1,
409.1)
(k)
Electric
(Account 408.1,
409.1)
(i)
Gas
(Account 408.1,
409.1)
(j)
DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.)
( 67,147)( 60,656) 1
2
11,552,453 3
2,863 4
5
1,080,780 6
( 18) 7
118 8
( 67,147) 12,577,715 9
10
11
75,000 25,000 12
13
4,318,910 3,392,995 14
15
3,622,928 1 16
8,016,838 3,417,996 17
18
19
1,600 20
1,600 21
22
23
24
460 25
460 26
27
28
( 1,553) 29
959 30
31
32
( 1) 33
( 595) 34
35
36
37
38
39
( 8,224,267) 18,525,979 86,135,185TOTAL
Page 262b.1FERC FORM NO. 2 (REV 12-07)
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Other
(p)
Adjustment to Ret.
Earnings
(Account 439)
(o)
Extraordinary Items
(Account 409.3)
(m)
Other Utility Opn.
Income
(Account 408.1,
409.1)
(n)
DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.)
State/Local
Income Tax
Rate
(q)
0.37( 1) 363,470 1
2
3
4
5
6
7
8
( 1) 363,470 9
10
11
0.75 12
0.75 13
14
15
14,114 16
14,114 17
18
19
20
21
22
23
24
25
26
27
28
29
30,361 30
31
( 1,824,133) 32
69,928 33
( 1,723,844) 34
35
36
37
38
39
( 1,242,062) 22,478,603TOTAL
Page 263b.1FERC FORM NO. 2 (REV 12-07)

This Page Intentionally Left Blank
Miscellaneous Current and Accrued Liabilities (Account 242)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Item
(a)
1. Describe and report the amount of other current and accrued liabilities at the end of year.
2. Minor items (less than $250,000) may be grouped under appropriate title.
Balance at
End of Year
(b)
1,245,000MARGIN CALL DEPOSIT 1
2,586,900FOREST USE PERMITS 2
2,583ST LEASE ACCRUAL 3
550,000FERC ADMIN FEE ACC 4
114,657FERC ELECT ADMIN CHG 5
4,983,557MT LEASE PAYMENTS 6
402,527MT INVASIVE SPECIES FEE 7
( 2,379,623)DSM TARIFF RIDER 8
21,990,274PAID TIME OFF 9
2,401,864LOW INCOME ENERGY ASSIST 10
22,272AVISTA GRANTS ENG SUSTAIN WSU 11
1,126,296WORKERS COMP LIABILITY 12
( 885,217)ACCTS PAYABLE INVENTORY ACCRUALS 13
862,975ACCTS PAYABLE EXPENSE ACCRUAL 14
8,825,770CURRENT PORTION BENEFIT LIABILITY 15
350,890CLEARING ACCOUNTS 16
175,352PREPAYMENTS 17
8,432,402CUSTOMER ACCOUNTS 18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
50,808,479Total 45
Page 268FERC FORM NO. 2 (12-96)
Other Deferred Credits (Account 253)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.Description of Other
Deferred Credits
(a)
Balance at
Beginning
of Year
(b)
1. Report below the details called for concerning other deferred credits.
2. For any deferred credit being amortized, show the period of amortization.
3. Minor items (less than $250,000) may be grouped by classes.
Balance at
End of Year
(f)
Debit
Contra
Account
(c)
Debit
Amount
(d)
Credits
(e)
1,125,000 1,125,000Deferred Gas Exchange - 1 year 1
504,472 319,835514, 545 297,078 112,441Kettle Falls Diesel Leak 2
600,725 591,655172 193,105 184,035Bills Pole Rentals 3
1,610,808 1,063,486128 8,947,679 8,400,357Defer Comp Active Execs 4
140,000 140,000Executive Incent Plan 5
336,456908 1,243,970 1,580,426Unbilled Revenue 6
4,458,218Various 14,154,482 9,696,264WA Energy Recovery Mechanism 7
23,418 122,858186, 550 31,366 130,806Misc Deferred Credits 8
15,073,734 11,791,840182 3,526,878 244,984Decoupling Deferred Credits 9
851,753186 851,753WA REC 10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
22,466,066 29,659,558 15,077,883 22,271,375Total 45
Page 269FERC FORM NO. 2 (12-96)
Schedule Page: 269 Line No.: 1 Column: a
FortisBC and Avista exchange volumes of gas on a firm delivery basis during different time periods. Amortization is
recorded monthly every year. This contract ends April 15, 2021.
Schedule Page: 269 Line No.: 2 Column: a
Kettle Falls Generation station underground fuel leak. Continuing remidiation liability is recorded.
Schedule Page: 269 Line No.: 7 Column: a
The Washington Energy Recovery Mechanism (ERM) allows Avista to periodically increase or decrease electric rates.
This accounting method tracks differences between actual power supply costs, net of wholesale sales and sales of fuel,
and the amount included in base rates.
Schedule Page: 269 Line No.: 9 Column: a
Washington Decoupling for electric and natural gas for a 5 year period beginning January 1, 2015. Idaho approved for an
initial term of 3 years beginning January 1, 2016, but extended thru March 31, 2025. Oregon approved similar to
Washington and Idaho beginning March 1, 2016.
Decoupling revenue deferrals are recognized during the period they occur, subject to certain limitations. Revenue is
expected to be collected within 24 months of the deferral.
Schedule Page: 269 Line No.: 10 Column: a
Washington Docket# UE-170485, 2 year plan
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
FOOTNOTE DATA
FERC FORM NO. 2 (12-96)Page 552.1
Accumulated Deferred Income Taxes-Other Property (Account 282)
1. Report the information called for below concerning the respondent's accounting for deferred income taxes relating to property not subject to accelerated amortization.
2. At Other (Specify), include deferrals relating to other income and deductions.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Account Subdivisions
(a)
Amounts
Credited to
Account 411.1
(d)
Balance at
Beginning
of Year
(b)
Amounts
Debited to
Account 410.1
(c)
Account 282 1
6,320,794Electric 327,565,981 2
2,688,056Gas 79,958,638 3
( 2,489,467)Other (Define) (footnote details) 90,350,945 4
6,519,383Total (Enter Total of lines 2 thru 4) 497,875,564 5
Other (Specify) (footnote details) 6
6,519,383TOTAL Account 282 (Enter Total of lines 5 thr 497,875,564 7
Classification of TOTAL 8
6,519,383Federal Income Tax 497,875,564 9
State Income Tax 10
Local Income Tax 11
Page 274FERC FORM NO. 2 (REV 12-07)
Accumulated Deferred Income Taxes-Other Property (Account 282) (continued)
3. Provide in a footnote a summary of the type and amount of deferred income taxes reported in the beginning-of-year and end-of-year balances for deferred income taxes that the
respondent estimates could be included in the development of jurisdictional recourse rates.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Adjustments
Debits
Acct. No.
(g)
Changes during
Year
Amounts Debited
to Account 410.2
(e)
Changes during
Year
Amounts Credited
to Account 411.2
(f)
Adjustments
Debits
Amount
(h)
Adjustments
Credits
Account No.
(i)
Adjustments
Credits
Amount
(j)
Balance at
End of Year
(k)
1
339,209,550 5,322,775 2
86,849,511 4,202,817 3
88,810,946 949,468 4
514,870,007 10,475,060 5
6
514,870,007 10,475,060 7
8
514,870,007 10,475,060 9
10
11
Page 275FERC FORM NO. 2 (REV 12-07)
Accumulated Deferred Income Taxes-Other (Account 283)
1. Report the information called for below concerning the respondent's accounting for deferred income taxes relating to amounts recorded in Account 283.
2. At Other (Specify), include deferrals relating to other income and deductions.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Account Subdivisions
(a)
Changes During Year
Amounts
Credited to
Account 411.1
(d)
Balance at
Beginning
of Year
(b)
Changes During Year
Amounts
Debited to
Account 410.1
(c)
Account 283 1
1,259,112 7,685,588Electric 3,996,661 2
9,126,454Gas( 6,680,910) 3
831,706Other (Define) (footnote details) 172,893,400 4
1,259,112 17,643,748Total (Total of lines 2 thru 4) 170,209,151 5
Other (Specify) (footnote details) 6
1,259,112 17,643,748TOTAL Account 283 (Total of lines 5 thru 170,209,151 7
Classification of TOTAL 8
1,259,112 17,643,748Federal Income Tax 170,209,151 9
State Income Tax 10
Local Income Tax 11
Page 276FERC FORM NO. 2/3Q (REV 12-07)
Accumulated Deferred Income Taxes-Other (Account 283) (continued)
3. Provide in a footnote a summary of the type and amount of deferred income taxes reported in the beginning-of-year and end-of-year balances for deferred income taxes that the
respondent estimates could be included in the development of jurisdictional recourse rates.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Adjustments
Debits
Acct. No.
(g)
Changes during
Year
Amounts Debited
to Account 410.2
(e)
Changes during
Year
Amounts Credited
to Account 411.2
(f)
Adjustments
Debits
Amount
(h)
Adjustments
Credits
Account No.
(i)
Adjustments
Credits
Amount
(j)
Balance at
End of Year
(k)
1
13,393,102 3,010,503( 40,538) 2
2,385,096 4,764( 55,684) 3
163,807,011 9,992,220 74,125 4
179,585,209 9,996,984 3,010,503( 22,097) 5
6
179,585,209 9,996,984 3,010,503( 22,097) 7
8
179,585,209 9,996,984 3,010,503( 22,097) 9
10
11
Page 277FERC FORM NO. 2/3Q (REV 12-07)
Other Regulatory Liabilities (Account 254)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.Description and Purpose of
Other Regulatory Liabilities
(a)
Balance at
Beginning of
Current
Quarter/Year
(b)
1. Report below the details called for concerning other regulatory liabilities which are created through the ratemaking actions of regulatory agencies (and not
includable in other amounts).
2. For regulatory liabilities being amortized, show period of amortization in column (a).
3. Minor items (5% of the Balance at End of Year for Account 254 or amounts less than $250,000, whichever is less) may be grouped by classes.
4. Provide in a footnote, for each line item, the regulatory citation where the respondent was directed to refund the regulatory liability (e.g. Commission Order, state
commission order, court decision).
Balance at
End of Current
Quarter/Year
(g)
Written off during
Quarter/Period
Account
Credited
(c)
Written off
During Period
Amount
Refunded
(d)
Credits
(f)
Written off
During Period
Amount Deemed
Non-Refundable
(e)
1,396,668Idaho Investment Tax Credit 190 342,447 5,191,030 6,245,251 1
Oregon BETC Credit 1,111,427 1,111,427 2
10,990,229Interest Rate Swaps 427, 175 17,088,285 28,078,514 3
22,008Nez Perce 557 528,308 550,316 4
87,014Idaho Earnings Test 191 686,970 773,984 5
9,136,730Decoupling Rebate 182 628,138 101,371 8,609,963 6
WA ERM Various 1,054,440 25,802,794 24,748,354 7
7,833,916ID PCA - 1 year 182, 557 274,007 7,559,909 8
141,936Deferred Federal ITC - Varies 190 7,963,912 8,105,848 9
12,378,938Plant Excess Deferred 410 398,370,456 410,749,394 10
7,448,495Non Plant Excess Deferred 410 11,089,633 18,538,128 11
Reg Liability MDM System 284,603 589,729 305,126 12
AFUDC Equity Tax Deferral 571,460 2,263,637 1,692,177 13
Exist Meters/ERTS Excess Depr Deferred 763,783 952,403 188,620 14
DSM Tariff Rider 10,394 294,533 284,139 15
9,249,947Low Income Energy Assistance 242, 908 10,308,427 2,401,864 1,343,384 16
261,474Deferred CS2 & Colstrip O&M 182 397,359 658,833 17
11,930,324
Reg Liability-Tax Reform Amortization - 1
year 407 9,829,408 4,348,735 6,449,651
18
Reg Liability-Energy Efficiency Assistance 1,532,183 1,532,183 19
955,292Other Regulatory Liabilities - Varies 190 492,504 1,447,796 20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
71,832,971 0 481,207,133 527,440,814Total 45 25,599,290
Page 278FERC FORM NO. 2/3Q (REV 12-07)
Schedule Page: 278 Line No.: 1 Column: a
Not amortized
Schedule Page: 278 Line No.: 2 Column: a
Not amortized.
Schedule Page: 278 Line No.: 3 Column: a
Mark-to-Market gains and losses for interest rate swap derivatives. Upon settlement, amortization of Regulatory Assets
and Liabilitiesas a component of interest expense over the term of the associated debt.
Schedule Page: 278 Line No.: 6 Column: a
Decoupling rebates are recognized during the period they occur, subject to certain limitations. Rebates are returned to
customers within 24 months of the deferral.
Schedule Page: 278 Line No.: 7 Column: a
The Washington Energy Recovery Mechanism allows Avista to periodically increase or decrease electric rates. this
accounting method tracks differences between actual power supply costs, net of wholesale sales and sales of fuel, and
the amount included in base rates. Avista files yearly on or before April 1 for prudence review by the commission.
Schedule Page: 278 Line No.: 8 Column: a
Avista defers 90 percent of the difference between actualnet power supply expenses and the amount included in base
retail ratesfor Idaho customers. Rate adjustments for rebate or surcharge are effective October 1.
Schedule Page: 278 Line No.: 9 Column: a
Noxon ITC - 65 year amortization, ends 2077
Community Solar ITC - 20 year amortization, ends 2035
Nine Mile ITC - 65 year amortization, ends 2080
Schedule Page: 278 Line No.: 10 Column: a
Amortized over remaining book likeof plant, estimated 36 years.
Schedule Page: 278 Line No.: 11 Column: a
Washington Gas and Oregon Gas costs are amortized over 1 year. Idaho Electric was offset against Colstrip excess
depreciation impacts from Docket# AVU-E-18-03 Order No. 34276.
Schedule Page: 278 Line No.: 13 Column: a
Amortization period not yet determined in all jurisdictions. Idaho Electric Settlement AVU-E-19-04 ordered a transfer to
account 254320 for Idaho portion.
Schedule Page: 278 Line No.: 14 Column: a
Washington Docket Nos. UE-180418 and UG-180419
Schedule Page: 278 Line No.: 16 Column: a
Washington Docket# UE-190912, UG-190920, Idaho Docket# AVU-E-18-12, AVU-G-18-08, Oregon RG 81, Docket No.
ADV 1063 (Advice No. 19-10-G)
Schedule Page: 278 Line No.: 18 Column: a
Washington Docket Nos. UE-170485, UG-170486, Oregon Advice# ADV 923/19-01-G (Schedule 474),
Idaho Case# GNR-U-19-01
Schedule Page: 278 Line No.: 19 Column: a
Avista's contribution in the Energy Assistance Fund as per Idaho Settlement Stipulation Case# AVU-E-19-04 (Page 10,
16 a.11).
Schedule Page: 278 Line No.: 20 Column: a
FAS 109 ITC - 18 year amortization, ends 2020
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
FOOTNOTE DATA
FERC FORM NO. 2 (12-96)Page 552.1
Gas Operating Revenues
1. Report below natural gas operating revenues for each prescribed account total. The amounts must be consistent with the detailed data on succeeding pages.
2. Revenues in columns (b) and (c) include transition costs from upstream pipelines.
3. Other Revenues in columns (f) and (g) include reservation charges received by the pipeline plus usage charges, less revenues reflected in columns (b) through (e). Include in
columns (f) and (g) revenues for Accounts 480-495.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Title of Account
(a)
Revenues for
GRI and ACA
Amount for
Current Year
(d)
Revenues for
Transition
Costs and
Take-or-Pay
Amount for
Current Year
(b)
Revenues for
Transition
Costs and
Take-or-Pay
Amount for
Previous Year
(c)
Revenues for
GRI and ACA
Amount for
Previous Year
(e)
480 Residential Sales 1
481 Commercial and Industrial Sales 2
482 Other Sales to Public Authorities 3
483 Sales for Resale 4
484 Interdepartmental Sales 5
485 Intracompany Transfers 6
487 Forfeited Discounts 7
488 Miscellaneous Service Revenues 8
489.1 Revenues from Transportation of Gas of Others
Through Gathering Facilities
9
489.2 Revenues from Transportation of Gas of Others
Through Transmission Facilities
10
489.3 Revenues from Transportation of Gas of Others
Through Distribution Facilities
11
489.4 Revenues from Storing Gas of Others 12
490 Sales of Prod. Ext. from Natural Gas 13
491 Revenues from Natural Gas Proc. by Others 14
492 Incidental Gasoline and Oil Sales 15
493 Rent from Gas Property 16
494 Interdepartmental Rents 17
495 Other Gas Revenues 18
Subtotal: 19
496 (Less) Provision for Rate Refunds 20
TOTAL: 21
Page 300FERC FORM NO. 2 (REV 12-07)
Gas Operating Revenues
4. If increases or decreases from previous year are not derived from previously reported figures, explain any inconsistencies in a footnote.
5. On Page 108, include information on major changes during the year, new service, and important rate increases or decreases.
6. Report the revenue from transportation services that are bundled with storage services as transportation service revenue.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Dekatherm of
Natural Gas
Amount for
Current Year
(j)
Total
Operating
Revenues
Amount for
Current Year
(h)
Total
Operating
Revenues
Amount for
Previous Year
(i)
Dekatherm of
Natural Gas
Amount for
Previous Year
(k)
Other
Revenues
Amount for
Previous Year
(g)
Other
Revenues
Amount for
Current Year
(f)
20,834,449 23,123,796480 Residential Sales 196,429,738 194,340,048 196,429,738 194,340,048 1
13,622,087 15,592,762481 Commercial and Industrial Sales 97,431,048 94,094,869 97,431,048 94,094,869 2
482 Other Sales to Public Authorities 3
51,383,498 59,875,983483 Sales for Resale 136,305,522 137,700,616 136,305,522 137,700,616 4
41,215 42,081484 Interdepartmental Sales 253,068 271,572 253,068 271,572 5
485 Intracompany Transfers 6
487 Forfeited Discounts 7
488 Miscellaneous Service Revenues 106,672 116,985 106,672 116,985 8
489.1 Revenues from Transportation of Gas of Others
Through Gathering Facilities
9
489.2 Revenues from Transportation of Gas of Others
Through Transmission Facilities
10
18,184,474 19,542,094
489.3 Revenues from Transportation of Gas of Others
Through Distribution Facilities 8,673,782 9,102,582 8,673,782 9,102,582
11
489.4 Revenues from Storing Gas of Others 12
490 Sales of Prod. Ext. from Natural Gas 13
491 Revenues from Natural Gas Proc. by Others 14
492 Incidental Gasoline and Oil Sales 15
493 Rent from Gas Property 2,751 2,678 2,751 2,678 16
494 Interdepartmental Rents 17
495 Other Gas Revenues 7,228,294 1,022,412 7,228,294 1,022,412 18
104,065,723 118,176,716Subtotal: 446,430,875 436,651,762 446,430,875 436,651,762 19
496 (Less) Provision for Rate Refunds 1,815,553 6,764,411 1,815,553 6,764,411 20
104,065,723 118,176,716TOTAL: 444,615,322 429,887,351 444,615,322 429,887,351 21
Page 301FERC FORM NO. 2 (REV 12-07)
Other Gas Revenues (Account 495)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Description of Transaction
(a)
Report below transactions of $250,000 or more included in Account 495, Other Gas Revenues. Group all transactions below $250,000
in one amount and provide the number of items.
Amount
(in dollars)
(b)
Commissions on Sale or Distribution of Gas of Others 1
Compensation for Minor or Incidental Services Provided for Others 2
Profit or Loss on Sale of Material and Supplies not Ordinarily Purchased for Resale 3
Sales of Stream, Water, or Electricity, including Sales or Transfers to Other Departments 4
Miscellaneous Royalties 5
Revenues from Dehydration and Other Processing of Gas of Others except as provided for in the Instructions to Account 495 6
Revenues for Right and/or Benefits Received from Others which are Realized Through Research, Development, and Demonstration Ventures 7
Gains on Settlements of Imbalance Receivables and Payables 8
Revenues from Penalties earned Pursuant to Tariff Provisions, including Penalties Associated with Cash-out Settlements 9
Revenues from Shipper Supplied Gas 10
Other revenues (Specify): 11
Misc Bills 1,813,397 12
Deferred Exchange Revenue 4,500,000 13
Decoupling Deferred Revenue 914,897 14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
7,228,294Total
Page 308FERC FORM NO. 2 (12-96)
Gas Operation and Maintenance Expenses
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
1. PRODUCTION EXPENSES 0 0 1
A. Manufactured Gas Production 0 0 2
Manufactured Gas Production (Submit Supplemental Statement) 0 0 3
B. Natural Gas Production 0 0 4
B1. Natural Gas Production and Gathering 0 0 5
Operation 0 0 6
750 Operation Supervision and Engineering 0 0 7
751 Production Maps and Records 0 0 8
752 Gas Well Expenses 0 0 9
753 Field Lines Expenses 0 0 10
754 Field Compressor Station Expenses 0 0 11
755 Field Compressor Station Fuel and Power 0 0 12
756 Field Measuring and Regulating Station Expenses 0 0 13
757 Purification Expenses 0 0 14
758 Gas Well Royalties 0 0 15
759 Other Expenses 0 0 16
760 Rents 0 0 17
TOTAL Operation (Total of lines 7 thru 17) 0 0 18
Maintenance 0 0 19
761 Maintenance Supervision and Engineering 0 0 20
762 Maintenance of Structures and Improvements 0 0 21
763 Maintenance of Producing Gas Wells 0 0 22
764 Maintenance of Field Lines 0 0 23
765 Maintenance of Field Compressor Station Equipment 0 0 24
766 Maintenance of Field Measuring and Regulating Station Equipment 0 0 25
767 Maintenance of Purification Equipment 0 0 26
768 Maintenance of Drilling and Cleaning Equipment 0 0 27
769 Maintenance of Other Equipment 0 0 28
TOTAL Maintenance (Total of lines 20 thru 28) 0 0 29
TOTAL Natural Gas Production and Gathering (Total of lines 18 and 29) 0 0 30
Page 317FERC FORM NO. 2 (12-96)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Account
(a)
Amount for
Current Year
(b)
Gas Operation and Maintenance Expenses(continued)
Amount for
Previous Year
(c)
B2. Products Extraction 0 0 31
Operation 0 0 32
770 Operation Supervision and Engineering 0 0 33
771 Operation Labor 0 0 34
772 Gas Shrinkage 0 0 35
773 Fuel 0 0 36
774 Power 0 0 37
775 Materials 0 0 38
776 Operation Supplies and Expenses 0 0 39
777 Gas Processed by Others 0 0 40
778 Royalties on Products Extracted 0 0 41
779 Marketing Expenses 0 0 42
780 Products Purchased for Resale 0 0 43
781 Variation in Products Inventory 0 0 44
(Less) 782 Extracted Products Used by the Utility-Credit 0 0 45
783 Rents 0 0 46
TOTAL Operation (Total of lines 33 thru 46) 0 0 47
Maintenance 0 0 48
784 Maintenance Supervision and Engineering 0 0 49
785 Maintenance of Structures and Improvements 0 0 50
786 Maintenance of Extraction and Refining Equipment 0 0 51
787 Maintenance of Pipe Lines 0 0 52
788 Maintenance of Extracted Products Storage Equipment 0 0 53
789 Maintenance of Compressor Equipment 0 0 54
790 Maintenance of Gas Measuring and Regulating Equipment 0 0 55
791 Maintenance of Other Equipment 0 0 56
TOTAL Maintenance (Total of lines 49 thru 56) 0 0 57
TOTAL Products Extraction (Total of lines 47 and 57) 0 0 58
Page 318FERC FORM NO. 2 (12-96)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Account
(a)
Amount for
Current Year
(b)
Gas Operation and Maintenance Expenses(continued)
Amount for
Previous Year
(c)
C. Exploration and Development 0 0 59
Operation 0 0 60
795 Delay Rentals 0 0 61
796 Nonproductive Well Drilling 0 0 62
797 Abandoned Leases 0 0 63
798 Other Exploration 0 0 64
TOTAL Exploration and Development (Total of lines 61 thru 64) 0 0 65
D. Other Gas Supply Expenses 0 0 66
Operation 0 0 67
800 Natural Gas Well Head Purchases 0 0 68
800.1 Natural Gas Well Head Purchases, Intracompany Transfers 0 0 69
801 Natural Gas Field Line Purchases 0 0 70
802 Natural Gas Gasoline Plant Outlet Purchases 0 0 71
803 Natural Gas Transmission Line Purchases 0 0 72
804 Natural Gas City Gate Purchases 214,502,540 266,160,172 73
804.1 Liquefied Natural Gas Purchases 0 0 74
805 Other Gas Purchases 0 0 75
(Less) 805.1 Purchases Gas Cost Adjustments ( 898,476) 37,730,182 76
TOTAL Purchased Gas (Total of lines 68 thru 76) 215,401,016 228,429,990 77
806 Exchange Gas 0 0 78
Purchased Gas Expenses 0 0 79
807.1 Well Expense-Purchased Gas 0 0 80
807.2 Operation of Purchased Gas Measuring Stations 0 0 81
807.3 Maintenance of Purchased Gas Measuring Stations 0 0 82
807.4 Purchased Gas Calculations Expenses 0 0 83
807.5 Other Purchased Gas Expenses 0 0 84
TOTAL Purchased Gas Expenses (Total of lines 80 thru 84) 0 0 85
Page 319FERC FORM NO. 2 (12-96)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Account
(a)
Amount for
Current Year
(b)
Gas Operation and Maintenance Expenses(continued)
Amount for
Previous Year
(c)
808.1 Gas Withdrawn from Storage-Debit 19,408,914 32,607,408 86
(Less) 808.2 Gas Delivered to Storage-Credit 19,279,491 35,303,621 87
809.1 Withdrawals of Liquefied Natural Gas for Processing-Debit 0 0 88
(Less) 809.2 Deliveries of Natural Gas for Processing-Credit 0 0 89
Gas used in Utility Operation-Credit 0 0 90
810 Gas Used for Compressor Station Fuel-Credit 0 0 91
811 Gas Used for Products Extraction-Credit 1,448,821 699,291 92
812 Gas Used for Other Utility Operations-Credit 0 0 93
TOTAL Gas Used in Utility Operations-Credit (Total of lines 91 thru 93) 1,448,821 699,291 94
813 Other Gas Supply Expenses 1,597,405 1,553,513 95
TOTAL Other Gas Supply Exp. (Total of lines 77,78,85,86 thru 89,94,95) 215,679,023 226,587,999 96
TOTAL Production Expenses (Total of lines 3, 30, 58, 65, and 96) 215,679,023 226,587,999 97
2. NATURAL GAS STORAGE, TERMINALING AND PROCESSING EXPENSES 0 0 98
A. Underground Storage Expenses 0 0 99
Operation 0 0100
814 Operation Supervision and Engineering 15,179 15,735101
815 Maps and Records 0 0102
816 Wells Expenses 0 0103
817 Lines Expense 0 0104
818 Compressor Station Expenses 0 0105
819 Compressor Station Fuel and Power 0 0106
820 Measuring and Regulating Station Expenses 0 0107
821 Purification Expenses 0 0108
822 Exploration and Development 0 0109
823 Gas Losses 0 0110
824 Other Expenses 877,951 772,251111
825 Storage Well Royalties 0 0112
826 Rents 0 0113
TOTAL Operation (Total of lines of 101 thru 113) 893,130 787,986114
Page 320FERC FORM NO. 2 (12-96)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Account
(a)
Amount for
Current Year
(b)
Gas Operation and Maintenance Expenses(continued)
Amount for
Previous Year
(c)
Maintenance 0 0115
830 Maintenance Supervision and Engineering 0 0116
831 Maintenance of Structures and Improvements 0 0117
832 Maintenance of Reservoirs and Wells 0 0118
833 Maintenance of Lines 0 0119
834 Maintenance of Compressor Station Equipment 0 0120
835 Maintenance of Measuring and Regulating Station Equipment 0 0121
836 Maintenance of Purification Equipment 0 0122
837 Maintenance of Other Equipment 1,554,613 2,239,715123
TOTAL Maintenance (Total of lines 116 thru 123) 1,554,613 2,239,715124
TOTAL Underground Storage Expenses (Total of lines 114 and 124) 2,447,743 3,027,701125
B. Other Storage Expenses 0 0126
Operation 0 0127
840 Operation Supervision and Engineering 0 0128
841 Operation Labor and Expenses 0 0129
842 Rents 0 0130
842.1 Fuel 0 0131
842.2 Power 0 0132
842.3 Gas Losses 0 0133
TOTAL Operation (Total of lines 128 thru 133) 0 0134
Maintenance 0 0135
843.1 Maintenance Supervision and Engineering 0 0136
843.2 Maintenance of Structures 0 0137
843.3 Maintenance of Gas Holders 0 0138
843.4 Maintenance of Purification Equipment 0 0139
843.5 Maintenance of Liquefaction Equipment 0 0140
843.6 Maintenance of Vaporizing Equipment 0 0141
843.7 Maintenance of Compressor Equipment 0 0142
843.8 Maintenance of Measuring and Regulating Equipment 0 0143
843.9 Maintenance of Other Equipment 0 0144
TOTAL Maintenance (Total of lines 136 thru 144) 0 0145
TOTAL Other Storage Expenses (Total of lines 134 and 145) 0 0146
Page 321FERC FORM NO. 2 (12-96)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Account
(a)
Amount for
Current Year
(b)
Gas Operation and Maintenance Expenses(continued)
Amount for
Previous Year
(c)
C. Liquefied Natural Gas Terminaling and Processing Expenses 0 0147
Operation 0 0148
844.1 Operation Supervision and Engineering 0 0149
844.2 LNG Processing Terminal Labor and Expenses 0 0150
844.3 Liquefaction Processing Labor and Expenses 0 0151
844.4 Liquefaction Transportation Labor and Expenses 0 0152
844.5 Measuring and Regulating Labor and Expenses 0 0153
844.6 Compressor Station Labor and Expenses 0 0154
844.7 Communication System Expenses 0 0155
844.8 System Control and Load Dispatching 0 0156
845.1 Fuel 0 0157
845.2 Power 0 0158
845.3 Rents 0 0159
845.4 Demurrage Charges 0 0160
(less) 845.5 Wharfage Receipts-Credit 0 0161
845.6 Processing Liquefied or Vaporized Gas by Others 0 0162
846.1 Gas Losses 0 0163
846.2 Other Expenses 0 0164
TOTAL Operation (Total of lines 149 thru 164) 0 0165
Maintenance 0 0166
847.1 Maintenance Supervision and Engineering 0 0167
847.2 Maintenance of Structures and Improvements 0 0168
847.3 Maintenance of LNG Processing Terminal Equipment 0 0169
847.4 Maintenance of LNG Transportation Equipment 0 0170
847.5 Maintenance of Measuring and Regulating Equipment 0 0171
847.6 Maintenance of Compressor Station Equipment 0 0172
847.7 Maintenance of Communication Equipment 0 0173
847.8 Maintenance of Other Equipment 0 0174
TOTAL Maintenance (Total of lines 167 thru 174) 0 0175
TOTAL Liquefied Nat Gas Terminaling and Proc Exp (Total of lines 165 and 175) 0 0176
TOTAL Natural Gas Storage (Total of lines 125, 146, and 176) 2,447,743 3,027,701177
Page 322FERC FORM NO. 2 (12-96)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Account
(a)
Amount for
Current Year
(b)
Gas Operation and Maintenance Expenses(continued)
Amount for
Previous Year
(c)
3. TRANSMISSION EXPENSES 0 0178
Operation 0 0179
850 Operation Supervision and Engineering 0 0180
851 System Control and Load Dispatching 0 0181
852 Communication System Expenses 0 0182
853 Compressor Station Labor and Expenses 0 0183
854 Gas for Compressor Station Fuel 0 0184
855 Other Fuel and Power for Compressor Stations 0 0185
856 Mains Expenses 0 0186
857 Measuring and Regulating Station Expenses 0 0187
858 Transmission and Compression of Gas by Others 0 0188
859 Other Expenses 0 0189
860 Rents 0 0190
TOTAL Operation (Total of lines 180 thru 190) 0 0191
Maintenance 0 0192
861 Maintenance Supervision and Engineering 0 0193
862 Maintenance of Structures and Improvements 0 0194
863 Maintenance of Mains 0 0195
864 Maintenance of Compressor Station Equipment 0 0196
865 Maintenance of Measuring and Regulating Station Equipment 0 0197
866 Maintenance of Communication Equipment 0 0198
867 Maintenance of Other Equipment 0 0199
TOTAL Maintenance (Total of lines 193 thru 199) 0 0200
TOTAL Transmission Expenses (Total of lines 191 and 200) 0 0201
4. DISTRIBUTION EXPENSES 0 0202
Operation 0 0203
870 Operation Supervision and Engineering 2,133,710 2,571,709204
871 Distribution Load Dispatching 0 0205
872 Compressor Station Labor and Expenses 0 0206
873 Compressor Station Fuel and Power 0 0207
Page 323FERC FORM NO. 2 (12-96)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Account
(a)
Amount for
Current Year
(b)
Gas Operation and Maintenance Expenses(continued)
Amount for
Previous Year
(c)
874 Mains and Services Expenses 5,760,059 6,006,761208
875 Measuring and Regulating Station Expenses-General 195,295 202,120209
876 Measuring and Regulating Station Expenses-Industrial 22,023 9,837210
877 Measuring and Regulating Station Expenses-City Gas Check Station 96,654 79,264211
878 Meter and House Regulator Expenses 697,101 850,056212
879 Customer Installations Expenses 2,648,771 3,312,750213
880 Other Expenses 3,259,800 3,505,475214
881 Rents 60,361 52,175215
TOTAL Operation (Total of lines 204 thru 215) 14,873,774 16,590,147216
Maintenance 0 0217
885 Maintenance Supervision and Engineering 233,303 220,749218
886 Maintenance of Structures and Improvements 0 0219
887 Maintenance of Mains 2,356,740 2,283,909220
888 Maintenance of Compressor Station Equipment 0 0221
889 Maintenance of Measuring and Regulating Station Equipment-General 569,260 606,305222
890 Maintenance of Meas. and Reg. Station Equipment-Industrial 103,774 57,433223
891 Maintenance of Meas. and Reg. Station Equip-City Gate Check Station 80,624 129,459224
892 Maintenance of Services 1,664,336 2,113,144225
893 Maintenance of Meters and House Regulators 2,143,842 2,623,297226
894 Maintenance of Other Equipment 607,116 414,110227
TOTAL Maintenance (Total of lines 218 thru 227) 7,758,995 8,448,406228
TOTAL Distribution Expenses (Total of lines 216 and 228) 22,632,769 25,038,553229
5. CUSTOMER ACCOUNTS EXPENSES 0 0230
Operation 0 0231
901 Supervision 139,050 137,648232
902 Meter Reading Expenses 1,910,839 1,771,096233
903 Customer Records and Collection Expenses 8,035,197 8,318,773234
Page 324FERC FORM NO. 2 (12-96)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Account
(a)
Amount for
Current Year
(b)
Gas Operation and Maintenance Expenses(continued)
Amount for
Previous Year
(c)
904 Uncollectible Accounts 1,856,595 191,192235
905 Miscellaneous Customer Accounts Expenses 241,665 174,009236
TOTAL Customer Accounts Expenses (Total of lines 232 thru 236) 12,183,346 10,592,718237
6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES 0 0238
Operation 0 0239
907 Supervision 0 0240
908 Customer Assistance Expenses 10,689,454 13,934,510241
909 Informational and Instructional Expenses 1,180,742 1,239,099242
910 Miscellaneous Customer Service and Informational Expenses 324,966 241,254243
TOTAL Customer Service and Information Expenses (Total of lines 240 thru 243) 12,195,162 15,414,863244
7. SALES EXPENSES 0 0245
Operation 0 0246
911 Supervision 0 0247
912 Demonstrating and Selling Expenses 346 259248
913 Advertising Expenses 1,040 0249
916 Miscellaneous Sales Expenses 0 0250
TOTAL Sales Expenses (Total of lines 247 thru 250) 1,386 259251
8. ADMINISTRATIVE AND GENERAL EXPENSES 0 0252
Operation 0 0253
920 Administrative and General Salaries 10,540,964 10,145,930254
921 Office Supplies and Expenses 1,899,662 1,870,409255
(Less) 922 Administrative Expenses Transferred-Credit 19,674 17,719256
923 Outside Services Employed 3,740,550 3,805,281257
924 Property Insurance 448,289 489,741258
925 Injuries and Damages 1,607,878 1,613,044259
926 Employee Pensions and Benefits 10,522,259 11,308,297260
927 Franchise Requirements 0 0261
928 Regulatory Commission Expenses 1,785,080 1,959,465262
(Less) 929 Duplicate Charges-Credit 0 0263
930.1General Advertising Expenses 0 0264
930.2Miscellaneous General Expenses 1,557,349 1,857,212265
931 Rents 165,973 132,525266
TOTAL Operation (Total of lines 254 thru 266) 32,248,330 33,164,185267
Maintenance 0 0268
932 Maintenance of General Plant 4,579,981 4,930,291269
TOTAL Administrative and General Expenses (Total of lines 267 and 269) 36,828,311 38,094,476270
TOTAL Gas O&M Expenses (Total of lines 97,177,201,229,237,244,251, and 270) 301,967,740 318,756,569271
Page 325FERC FORM NO. 2 (12-96)
Gas Used in Utility Operations
1. Report below details of credits during the year to Accounts 810, 811, and 812.
2. If any natural gas was used by the respondent for which a charge was not made to the appropriate operating expense or other account, list separately in column (c) the Dth of gas
used, omitting entries in column (d).
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Purpose for Which Gas
Was Used
(a)
Natural Gas
Amount of
Credit
(in dollars)
(d)
Account
Charged
(b)
Natural Gas
Gas Used
Dth
(c)
Natural Gas
Amount of
Credit
(in dollars)
(d)
Natural Gas
Amount of
Credit
(in dollars)
(d)
3,025,727810 Gas Used for Compressor Station Fuel - Credit 1
699,291 2,499,937811 Gas Used for Products Extraction - Credit 2
Gas Shrinkage and Other Usage in Respondent's
Own Processing
3
Gas Shrinkage, etc. for Respondent's Gas
Processed by Others
4
812 Gas Used for Other Utility Operations - Credit
(Report separately for each principal use. Group
minor uses.)
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
699,291 5,525,66425 Total
Page 331FERC FORM NO. 2 (12-96)
Other Gas Supply Expenses (Account 813)
1. Report other gas supply expenses by descriptive titles that clearly indicate the nature of such expenses. Show maintenance expenses, revaluation of monthly encroachments
recorded in Account 117.4, and losses on settlements of imbalances and gas losses not associated with storage separately. Indicate the functional classification and purpose of property
to which any expenses relate. List separately items of $250,000 or more.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Description
(a)
Amount
(in dollars)
(b)
Gas Resource Management 1
882,578Labor 2
296,193Labor Loading 3
176,595Other Expenses (Professional Services, Travel, Transporation, Office Supplies, Training) 4
5
Regulatory Affairs 6
13,011Labor 7
4,868Labor Loading 8
180,268Other Expenses (Travel, Transporation, Gas Technology Institute Payments) 9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1,553,51325 Total
Page 334FERC FORM NO. 2 (12-96)
Miscellaneous General Expenses (Account 930.2)
1. Provide the information requested below on miscellaneous general expenses.
2. For Other Expenses, show the (a) purpose, (b) recipient and (c) amount of such items. List separately amounts of $250,000 or more however, amounts less than $250,000 may be
grouped if the number of items of so grouped is shown.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Description
(a)
Amount
(in dollars)
(b)
Industry association dues. 142,060 1
Experimental and general research expenses. 2
a. Gas Research Institute (GRI)
b. Other
Publishing and distributing information and reports to stockholders, trustee, registrar, and transfer 3
agent fees and expenses, and other expenses of servicing outstanding securities of the respondent 150,092
Other expenses 4
Community Relations 110,092 5
Director Expenses 175,955 6
Education & Informaion 12,325 7
Rating Agency Fees 62,522 8
Aircraft Operation and fee 159,237 9
Misc Vendors > 5000 599,130 10
Misc Vendors < 5000 504,543 11
12
13
14
15
16
17
18
19
20
21
22
23
24
1,915,95625 Total
Page 335FERC FORM NO. 2 (12-96)

This Page Intentionally Left Blank
Depreciation, Depletion and Amortization of Gas Plant (Accts 403, 404.1, 404.2, 404.3, 405) (Except Amortization of
Acquisition Adjustments)
1. Report in Section A the amounts of depreciation expense, depletion and amortization for the accounts indicated and classified according to the plant functional groups shown.
2. Report in Section B, column (b) all depreciable or amortizable plant balances to which rates are applied and show a composite total. (If more desirable, report by plant account,
subaccount or functional classifications other than those pre-printed in column (a). Indicate in a footnote the manner in which column (b) balances are
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Functional Classification
(a)
Amortization of
Underground Storage
Land and Land
Rights
(Account 404.2)
(e)
Amortization
Expense for
Asset
Retirement
Costs
(Account
403.1) (c)
Amortization and
Depletion of
Producing Natural
Gas Land and Land
Rights
(Account 404.1)
(d)
Section A. Summary of Depreciation, Depletion, and Amortization Charges
Depreciation
Expense
(Account 403)
(b)
1 Intangible plant
2 Production plant, manufactured gas
3 Production and gathering plant, natural gas
4 Products extraction plant
834,251 5 Underground gas storage plant
6 Other storage plant
7 Base load LNG terminaling and processing plant
8 Transmission plant
26,992,306 9 Distribution plant
1,736,137 10 General plant
7,261,536 11 Common plant-gas
36,824,230 12 TOTAL
Page 336FERC FORM NO. 2 (12-96)
Depreciation, Depletion and Amortization of Gas Plant (Accts 403, 404.1, 404.2, 404.3, 405) (Except Amortization of
Acquisition Adjustments) (continued)
obtained. If average balances are used, state the method of averaging used. For column (c) report available information for each plant functional classification listed in column (a). If
composite depreciation accounting is used, report available information called for in columns (b) and (c) on this basis. Where the unit-of-production method is used to determine
depreciation charges, show in a footnote any revisions made to estimated gas reserves.
3. If provisions for depreciation were made during the year in addition to depreciation provided by application of reported rates, state in a footnote the amounts and nature of the
provisions and the plant items to which related.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Total
(b to g)
(h)
Amortization of
Other Limited-term
Gas Plant
(Account 404.3)
(f)
Amortization of
Other Gas Plant
(Account 405)
(g)
Functional Classification
(a)
Section A. Summary of Depreciation, Depletion, and Amortization Charges
177,080 177,080 1 Intangible plant
2 Production plant, manufactured gas
3 Production and gathering plant, natural gas
4 Products extraction plant
834,251 5 Underground gas storage plant
6 Other storage plant
7 Base load LNG terminaling and processing plant
8 Transmission plant
26,992,306 9 Distribution plant
1,736,137 10 General plant
17,163,524 9,901,988 11 Common plant-gas
46,903,298 10,079,068 12 TOTAL
Page 337FERC FORM NO. 2 (12-96)
Depreciation, Depletion and Amortization of Gas Plant (Accts 403, 404.1, 404.2, 404.3, 405) (Except Amortization of
Acquisition Adjustments) (continued)
4. Add rows as necessary to completely report all data. Number the additional rows in sequence as 2.01, 2.02, 3.01, 3.02, etc.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Applied Depreciation
or Amortization Rates
(percent)
(c)
Plant Bases
(in thousands)
(b)
Functional Classification
(a)
Section B. Factors Used in Estimating Depreciation Charges
Production and Gathering Plant 1
Offshore (footnote details) 2
Onshore (footnote details) 3
Underground Gas Storage Plant (footnote details) 4
Transmission Plant 5
Offshore (footnote details) 6
Onshore (footnote details) 7
General Plant (footnote details) 8
9
10
11
12
13
14
15
Page 338FERC FORM NO. 2 (12-96)

This Page Intentionally Left Blank
Particulars Concerning Certain Income Deductions and Interest Charges Accounts
Report the information specified below, in the order given, for the respective income deduction and interest charges accounts.
(a) Miscellaneous Amortization (Account 425)-Describe the nature of items included in this account, the contra account charged, the total of amortization charges for the year, and the
period of amortization.
(b) Miscellaneous Income Deductions-Report the nature, payee, and amount of other income deductions for the year as required by Accounts 426.1, Donations; 426.2, Life Insurance;
426.3, Penalties; 426.4, Expenditures for Certain Civic, Political and Related Activities; and 426.5, Other Deductions, of the Uniform System of Accounts. Amounts of less than $250,000
may be grouped by classes within the above accounts.
(c) Interest on Debt to Associated Companies (Account 430)-For each associated company that incurred interest on debt during the year, indicate the amount and interest rate
respectively for (a) advances on notes, (b) advances on open account, (c) notes payable, (d) accounts payable, and (e) other debt, and total interest. Explain the nature of other debt on
which interest was incurred during the year.
(d) Other Interest Expense (Account 431) - Report details including the amount and interest rate for other interest charges incurred during the year.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Item
(a)
Amount
(b)
ACCT. 425.00 MISCELLANEOUS AMORIZATIONS 1
Items Under $250,000 ( 33,721) 2
Total 425.0 ( 33,721) 3
ACCT 426.10 DONATIONS 4
Avista Foundation 6,850,000 5
WSU 250,000 6
Urbanova 250,000 7
Items Under $250,000 3,982,979 8
Total 426.10 11,332,979 9
ACCT 426.2 LIFE INSURANCE 10
Officers LIfe 156,937 11
SERP 2,196,129 12
Items Under $250,000 286,978 13
Total 426.2 2,640,044 14
ACCT 426.3 PENALTIES 15
Items Under $250,000 21,180 16
Total 426.3 21,180 17
ACCT 426.4 EXPENDITURES FOR CERTAIN CIVIL,POLITICAL & RELATED ACTIVITIES 18
Items Under $250,000 1,718,553 19
Total 426.4 1,718,553 20
ACCT 426.5 OTHER DEDUCTIONS 21
Executive Deferred Comp 913,337 22
DSM Idaho Electric 297,867 23
Gibson Dunn & Crutcher LLP 828,211 24
Merrill Lynch Pierce & Fenner 18,737,116 25
Items Under $250,000 3,594,081 26
Total 426.5 24,370,612 27
Avista Capital II 1,342,492 28
Total 427.6 1,342,492 29
ACCT 430.0 INTEREST ON DEBT TO ASSOC. COMPANIES 489,554 30
Total 430.0 489,554 31
ACCT 431.0 OTHER INTEREST EXPENSE 32
Interest on electric deferrals 2,345,484 33
Interest on gas deferrals 943,997 34
Interest on committed line of credit 5,336,331 35
Page 340FERC FORM NO. 2 (12-96)
Particulars Concerning Certain Income Deductions and Interest Charges Accounts (continued)
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Item
(a)
Amount
(b)
Other ( 419,827) 1
Total 431.0 8,205,985 2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Page 340.1FERC FORM NO. 2 (12-96)
Regulatory Commission Expenses (Account 928)
1. Report below details of regulatory commission expenses incurred during the current year (or in previous years, if being amortized) relating to formal cases before a regulatory body, or
cases in which such a body was a party.
2. In column (b) and (c), indicate whether the expenses were assessed by a regulatory body or were otherwise incurred by the utility.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Description
(Furnish name of regulatory commission
or body, the docket number, and a
description of the case.)
(a)
Total
Expenses
to Date
(d)
Assessed by
Regulatory
Commission
(b)
Expenses
of
Utility
(c)
Deferred in
Account 182.3
at Beginning
of Year
(e)
Federal Energy Regulatory Commission 1
Charges include annual fee and license fee 2
for the Spokane River Project, the Cabinet 3
2,628,742 32,603 2,596,139Gorge Project and Noxon Rapids Project 4
5
Washington Utilities and Transportation Commission 6
2,121,918 1,034,748 1,087,170Includes annual fee and various other electric dockets 7
8
571,065 279,668 291,397Includes annual fee and various other natural gas
dockets
9
10
Idaho Public Utilities Commission 11
1,111,996 448,538 663,458Includes annual fee and various other electric dockets 12
13
244,754 89,959 154,795Includes annual fee and various other natural gas
dockets
14
15
Public Utility Commission of Oregon 16
889,934 348,782 541,152Includes annual fee and various other dockets 17
18
518,188 518,188Not directly assigned electric 19
253,712 253,712Not directly assigned natural gas 20
21
22
23
24
8,340,309 3,006,198 5,334,111Total25
Page 350FERC FORM NO. 2 (12-96)
Regulatory Commission Expenses (Account 928)
3. Show in column (k) any expenses incurred in prior years that are being amortized. List in column (a) the period of amortization.
4. Identify separately all annual charge adjustments (ACA).
5. List in column (f), (g), and (h) expenses incurred during year which were charges currently to income, plant, or other accounts.
6. Minor items (less than $250,000) may be grouped.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Amortized
During Year
Contra
Account
(j)
Expenses
Incurred
During Year
Charged
Currently To
Amount
(h)
Expenses
Incurred
During Year
Deferred to
Account
182.3
(i)
Deferred in
Account 182.3
End of Year
(l)
Expenses
Incurred
During Year
Charged
Currently To
Department
(f)
Expenses
Incurred
During Year
Charged
Currently To
Account No.
(g)
Amortized
During Year
Amount
(k)
1
2
3
2,628,742928Electric 4
5
6
2,121,918928Electric 7
8
571,065928Gas 9
10
11
1,111,996928Electric 12
13
244,754928Gas 14
15
16
889,934928Gas 17
18
518,188928Electric 19
253,712928Gas 20
21
22
23
24
8,340,30925
Page 351FERC FORM NO. 2 (12-96)
Employee Pensions and Benefits (Account 926)
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Line
No.
Expense
(a)
1. Report below the items contained in Account 926, Employee Pensions and Benefits.
Amount
(b)
24,830,035Pensions – defined benefit plans 1
Pensions – other 2
9,037,493Post-retirement benefits other than pensions (PBOP) 3
Post- employment benefit plans 4
1,250,610Other (Specify) 5
24,950,328Health insurance and Benefits 6
10,361,513401(K) Savings Plan 7
2,168,312Employee Education 8
( 61,289,994)Allocated to Capital and other expense accounts 9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
11,308,297Total
Page 352FERC FORM NO. 2 (NEW 12-07)

This Page Intentionally Left Blank
Distribution of Salaries and Wages
Report below the distribution of total salaries and wages for the year. Segregate amounts originally charged to clearing accounts to Utility Departments, Construction, Plant Removals and
Other Accounts, and enter such amounts in the appropriate lines and columns provided. Salaries and wages billed to the Respondent by an affiliated company must be assigned to the
particular operating function(s) relating to the expenses.
In determining this segregation of salaries and wages originally charged to clearing accounts, a method of approximation giving substantially correct results may be used. When reporting
detail of other accounts, enter as many rows as necessary numbered sequentially starting with 75.01, 75.02, etc.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Classification
(a)
Total
(e)
Direct Payroll
Distribution
(b)
Allocation of
Payroll Charged
for Clearing
Accounts
(d)
Payroll Billed
by Affiliated
Companies
(c)
Electric 1
Operation 2
13,119,472 13,119,472 Production 3
4,128,801 4,128,801 Transmission 4
9,754,373 9,754,373 Distribution 5
7,471,488 7,471,488 Customer Accounts 6
599,173 599,173 Customer Service and Informational 7
Sales 8
22,278,296 22,278,296 Administrative and General 9
57,351,603 57,351,603 TOTAL Operation (Total of lines 3 thru 9) 10
Maintenance 11
5,163,196 5,163,196 Production 12
1,020,436 1,020,436 Transmission 13
3,999,308 3,999,308 Distribution 14
19,640,993 19,640,993 Administrative and General 15
10,182,940 19,640,993 29,823,933 TOTAL Maintenance (Total of lines 12 thru 15) 16
Total Operation and Maintenance 17
18,282,668 18,282,668 Production (Total of lines 3 and 12) 18
5,149,237 5,149,237 Transmission (Total of lines 4 and 13) 19
13,753,681 13,753,681 Distribution (Total of lines 5 and 14) 20
7,471,488 7,471,488 Customer Accounts (line 6) 21
599,173 599,173 Customer Service and Informational (line 7) 22
Sales (line 8) 23
22,278,296 19,640,993 41,919,289 Administrative and General (Total of lines 9 and 15) 24
67,534,543 19,640,993 87,175,536 TOTAL Operation and Maintenance (Total of lines 18 thru 24) 25
Gas 26
Operation 27
Production - Manufactured Gas 28
Production - Natural Gas(Including Exploration and Development) 29
895,589 895,589 Other Gas Supply 30
9,947 9,947 Storage, LNG Terminaling and Processing 31
Transmission 32
6,249,270 6,249,270 Distribution 33
3,259,054 3,259,054 Customer Accounts 34
342,792 342,792 Customer Service and Informational 35
Sales 36
8,958,668 7,060,487 16,019,155 Administrative and General 37
19,715,320 7,060,487 26,775,807 TOTAL Operation (Total of lines 28 thru 37) 38
Maintenance 39
Production - Manufactured Gas 40
Production - Natural Gas(Including Exploration and Development) 41
Other Gas Supply 42
Storage, LNG Terminaling and Processing 43
1,787,888 1,787,888 Transmission 44
3,242,057 3,242,057 Distribution 45
Page 354FERC FORM NO. 2 (REVISED)
Distribution of Salaries and Wages (continued)
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Classification
(a)
Total
(e)
Direct Payroll
Distribution
(b)
Allocation of
Payroll Charged
for Clearing
Accounts
(d)
Payroll Billed
by Affiliated
Companies
(c)
Administrative and General 46
5,029,945 5,029,945 TOTAL Maintenance (Total of lines 40 thru 46) 47
Gas (Continued) 48
Total Operation and Maintenance 49
Production - Manufactured Gas (Total of lines 28 and 40) 50
Production - Natural Gas (Including Expl. and Dev.)(ll. 29 and 41) 51
895,589 895,589 Other Gas Supply (Total of lines 30 and 42) 52
9,947 9,947 Storage, LNG Terminaling and Processing (Total of ll. 31 and 43) 53
1,787,888 1,787,888 Transmission (Total of lines 32 and 44) 54
9,491,327 9,491,327 Distribution (Total of lines 33 and 45) 55
3,259,054 3,259,054 Customer Accounts (Total of line 34) 56
342,792 342,792 Customer Service and Informational (Total of line 35) 57
Sales (Total of line 36) 58
8,958,668 7,060,487 16,019,155 Administrative and General (Total of lines 37 and 46) 59
24,745,265 7,060,487 31,805,752Total Operation and Maintenance (Total of lines 50 thru 59) 60
Other Utility Departments 61
Operation and Maintenance 62
92,279,808 26,701,480 118,981,288 TOTAL ALL Utility Dept. (Total of lines 25, 60, and 62) 63
Utility Plant 64
Construction (By Utility Departments) 65
43,013,400 13,479,982 56,493,382 Electric Plant 66
11,563,912 4,571,235 16,135,147 Gas Plant 67
Other 68
54,577,312 18,051,217 72,628,529 TOTAL Construction (Total of lines 66 thru 68) 69
Plant Removal (By Utility Departments) 70
1,960,333 504,622 2,464,955 Electric Plant 71
473,307 121,837 595,144 Gas Plant 72
Other 73
2,433,640 626,459 3,060,099 TOTAL Plant Removal (Total of lines 71 thru 73) 74
48,876,853 ( 45,379,156) 3,497,697Other Accounts (Specify) (footnote details) 75
48,876,853 ( 45,379,156) 3,497,697TOTAL Other Accounts 76
198,167,613 198,167,613TOTAL SALARIES AND WAGES 77
Page 355FERC FORM NO. 2 (REVISED)
Charges for Outside Professional and Other Consultative Services
1. Report the information specified below for all charges made during the year included in any account (including plant accounts) for outside consultative and other professional services.
These services include rate, management, construction, engineering, research, financial, valuation, legal, accounting, purchasing, advertising,labor relations, and public relations, rendered
for the respondent under written or oral arrangement, for which aggregate payments were made during the year to any corporation partnership, organization of any kind, or individual (other
than for services as an employee or for payments made for medical and related services) amounting to more than $250,000, including payments for legislative services, except those
which should be reported in Account 426.4 Expenditures for Certain Civic, Political and Related Activities.
(a) Name of person or organization rendering services.
(b) Total charges for the year.
2. Sum under a description “Other”, all of the aforementioned services amounting to $250,000 or less.
3. Total under a description “Total”, the total of all of the aforementioned services.
4. Charges for outside professional and other consultative services provided by associated (affiliated) companies should be excluded from this schedule and be reported on Page 358,
according to the instructions for that schedule.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Description
(a)
Amount
(in dollars)
(b)
18,737,116MERRILL LYNCH 1
4,406,010SBW CONSULTING 2
2,028,049HEATH CONSULTANTS INCORPORATED 3
1,999,948DELIOTTE & TOUCHE LLP 4
1,751,215CLEARESULT CONSULTING 5
1,663,638HANNA & ASSOCIATES 6
1,081,713GIBSON DUNN & CRUTCHER 7
760,844CN UTILITY CONSULTING 8
681,308HELVETICKA INC 9
533,597UTILICAST LLC 10
412,583CHAPER & VERSE 11
409,535SECURITAS SECURITY SERVICES 12
385,270AVCO CONSULTING 13
348,783SCHNABEL ENGINEERING 14
313,338RW LYALL & COMPANY 15
297,382TILTON & EXCAVATION 16
295,311GENERAL ELECTRIC INTERNATIONAL 17
281,689DAVIS WRIGHT TREMAINE 18
267,239MCGRIFF SEIBELS & WILLIAMS INC 19
36,654,568 Subtotal 20
14,948,968Other 21
51,603,536 Total 22
23
24
25
26
27
28
29
30
31
32
33
34
35
Page 357
Transactions with Associated (Affiliated) Companies
1. Report below the information called for concerning all goods or services received from or provided to associated (affiliated) companies amounting to more than $250,000.
2. Sum under a description “Other”, all of the aforementioned goods and services amounting to $250,000 or less.
3. Total under a description “Total”, the total of all of the aforementioned goods and services.
4. Where amounts billed to or received from the associated (affiliated) company are based on an allocation process, explain in a footnote the basis of the allocation.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Description of the Good or Service
(a)
Amount
Charged or
Credited
(d)
Name of Associated/Affiliated Company
(b)
Account(s)
Charged or
Credited
(c)
Goods or Services Provided by Affiliated Company 1
931000 106,500Steam Plant SquareOther 2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Goods or Services Provided for Affiliated Company 20
146000 261,360SalixCorporate Support 21
146000 281,610Avista DevelopmentCorporate Support 22
146000 103,015Avista CapitalOther 23
146000 22,484AELPOther 24
146000 9,074AJT MiningOther 25
146000 66,691Steam Plant SquareOther 26
146000 16,769Court Yard Office CenterOther 27
28
29
30
31
32
33
34
35
36
37
38
39
40
Page 358FERC FORM NO. 2 (NEW 12-07)

This Page Intentionally Left Blank
Gas Storage Projects
1. Report injections and withdrawals of gas for all storage projects used by respondent.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Item
(a)
Total
Amount
(Dth)
(d)
Gas
Belonging to
Respondent
(Dth)
(b)
Gas
Belonging to
Others
(Dth)
(c)
STORAGE OPERATIONS (in Dth)
Gas Delivered to Storage 1
134,574 134,574January 2
251,542 251,542February 3
474,227 474,227March 4
1,549,606 1,549,606April 5
3,497,474 3,497,474May 6
2,194,805 2,194,805June 7
650,529 650,529July 8
187,812 187,812August 9
1,132,979 1,132,979September 10
63,944 63,944October 11
940,488 940,488November 12
864,982 864,982December 13
11,942,962 11,942,962TOTAL (Total of lines 2 thru 13) 14
Gas Withdrawn from Storage 15
2,757,033 2,757,033January 16
2,250,769 2,250,769February 17
972,140 972,140March 18
71,020 71,020April 19
2,059 2,059May 20
342,087 342,087June 21
343,177 343,177July 22
1,015,698 1,015,698August 23
6,680 6,680September 24
477,938 477,938October 25
1,735,487 1,735,487November 26
1,259,683 1,259,683December 27
11,233,771 11,233,771TOTAL (Total of lines 16 thru 27) 28
Page 512_FERC FORM NO. 2 (12-96)
Gas Storage Projects
1. On line 4, enter the total storage capacity certificated by FERC.
2. Report total amount in Dth or other unit, as applicable on lines 2, 3, 4, 7. If quantity is converted from Mcf to Dth, provide conversion factor in a footnote.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Item
(a)
Total Amount
(b)
STORAGE OPERATIONS
8,528,000Top or Working Gas End of Year 1
7,730,668Cushion Gas (Including Native Gas) 2
16,258,668Total Gas in Reservoir (Total of line 1 and 2) 3
16,258,668Certificated Storage Capacity 4
50Number of Injection - Withdrawal Wells 5
32Number of Observation Wells 6
76,614Maximum Days' Withdrawal from Storage 7
02/04/2019Date of Maximum Days' Withdrawal 8
LNG Terminal Companies (in Dth) 9
Number of Tanks 10
Capacity of Tanks 11
LNG Volume 12
Received at "Ship Rail" 13
Transferred to Tanks 14
Withdrawn from Tanks 15
"Boil Off" Vaporization Loss 16
Page 513_FERC FORM NO. 2 (12-96)
Schedule Page: 513 Line No.: 7 Column: b
Mcf conveted to Dth using a factor of 1.04
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
FOOTNOTE DATA
FERC FORM NO. 2 (12-96)Page 552.1
Auxiliary Peaking Facilities
1. Report below auxiliary facilities of the respondent for meeting seasonal peak demands on the respondent's system, such as underground storage projects, liquefied petroleum gas
installations, gas liquefaction plants, oil gas sets, etc.
2. For column (c), for underground storage projects, report the delivery capacity on February 1 of the heating season overlapping the year-end for which this report is submitted.
For other facilities, report the rated maximum daily delivery capacities.
3. For column (d), include or exclude (as appropriate) the cost of any plant used jointly with another facility on the basis of predominant use, unless the auxiliary peaking facility is a
separate plant as contemplated by general instruction 12 of the Uniform System of Accounts.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Location of
Facility
(a)
Was Facility
Operated on Day
of Highest
Transmission Peak
Delivery?
Maximum Daily
Delivery Capacity
of Facility
Dth
(c)
Cost of
Facility
(in dollars)
(d)
Type of
Facility
(b)
1
44,237,871 346,667Underground Natural GasChehalis, Washington 2 Yes
Storage Field 3
Washington & Idaho Supply 4
5
6,813,975 52,000Underground Natural GasChehalis, Washington 6 Yes
Storage Field 7
Oregon Supply 8
9
2,623Underground Natural GasChehalis, Washington 10 Yes
Storage Field 11
Oregon Supply 12
13
Underground Natural GasRock Springs, Wyoming 14 Yes
Storage Field 15
Washington & Idaho Supply 16
17
Underground Natural GasRock Springs, Wyoming 18 Yes
Storage Field 19
Oregon Supply 20
21
22
23
24
25
26
27
28
29
30
Page 519FERC FORM NO. 2 (12-96)
Schedule Page: 519 Line No.: 10 Column: a
Respondent is a participant in the facilities, not an owner and is charged a fee for demand deliverability and capacity.
Schedule Page: 519 Line No.: 14 Column: a
Avista does not have firm rights but have interruptible access.
Schedule Page: 519 Line No.: 18 Column: a
Avista does not have firm rights but have interruptible access.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/15/2020
Year/Period of Report
2019/Q4
FOOTNOTE DATA
FERC FORM NO. 2 (12-96)Page 552.1
Gas Account - Natural Gas
1. The purpose of this schedule is to account for the quantity of natural gas received and delivered by the respondent.
2. Natural gas means either natural gas unmixed or any mixture of natural and manufactured gas.
3. Enter in column (c) the year to date Dth as reported in the schedules indicated for the items of receipts and deliveries.
4. Enter in column (d) the respective quarter’s Dth as reported in the schedules indicated for the items of receipts and deliveries.
5. Indicate in a footnote the quantities of bundled sales and transportation gas and specify the line on which such quantities are listed.
6. If the respondent operates two or more systems which are not interconnected, submit separate pages for this purpose.
7. Indicate by footnote the quantities of gas not subject to Commission regulation which did not incur FERC regulatory costs by showing (1) the local distribution volumes another jurisdictional pipeline delivered to
the local distribution company portion of the reporting pipeline (2) the quantities that the reporting pipeline transported or sold through its local distribution facilities or intrastate facilities and which the reporting
pipeline received through gathering facilities or intrastate facilities, but not through any of the interstate portion of the reporting pipeline, and (3) the gathering line quantities that were not destined for interstate
market or that were not transported through any interstate portion of the reporting pipeline.
8. Indicate in a footnote the specific gas purchase expense account(s) and related to which the aggregate volumes reported on line No. 3 relate.
9. Indicate in a footnote (1) the system supply quantities of gas that are stored by the reporting pipeline, during the reporting year and also reported as sales,transportation and compression volumes by the reporting
pipeline during the same reporting year, (2) the system supply quantities of gas that are stored by the reporting pipeline during the reporting year which the reporting pipeline intends to sell or transport in a future
reporting year, and (3) contract storage quantities.
10. Also indicate the volumes of pipeline production field sales that are included in both the company's total sales figure and the company's total transportation figure. Add additional information as necessary to the
footnotes.
Line
No.
Name of Respondent This Report Is:
(1) An Original
(2) A Resubmission
Date of Report(Mo, Da, Yr)Year/Period of Report
End ofAvista Corporation X
04/15/2020 2019/Q4
Item
(a)
Current Three Months
Ended Amount of Dth
Quarterly Only
(d)
Ref. Page No. of
(FERC Form Nos.
2/2-A)
(b)
Total Amount
of Dth
Year to Date
(c)
01 Name of System:
GAS RECEIVED 2
27,143,640 101,627,285Gas Purchases (Accounts 800-805) 3
303Gas of Others Received for Gathering (Account 489.1) 4
305Gas of Others Received for Transmission (Account 489.2) 5
5,540,091301 19,542,094Gas of Others Received for Distribution (Account 489.3) 6
307Gas of Others Received for Contract Storage (Account 489.4) 7
Gas of Others Received for Production/Extraction/Processing (Account 490 and 491) 8
328Exchanged Gas Received from Others (Account 806) 9
( 10,652)328 13,758Gas Received as Imbalances (Account 806) 10
332Receipts of Respondent's Gas Transported by Others (Account 858) 11
1,547,505( 771,411)Other Gas Withdrawn from Storage (Explain) 12
Gas Received from Shippers as Compressor Station Fuel 13
Gas Received from Shippers as Lost and Unaccounted for 14
Other Receipts (Specify) (footnote details) 15
34,220,584 120,411,726Total Receipts (Total of lines 3 thru 15) 16
GAS DELIVERED 17
27,949,690 98,634,623Gas Sales (Accounts 480-484) 18
303Deliveries of Gas Gathered for Others (Account 489.1) 19
305Deliveries of Gas Transported for Others (Account 489.2) 20
5,206,341301 18,751,376Deliveries of Gas Distributed for Others (Account 489.3) 21
307Deliveries of Contract Storage Gas (Account 489.4) 22
Gas of Others Delivered for Production/Extraction/Processing (Account 490 and 491) 23
328Exchange Gas Delivered to Others (Account 806) 24
328Gas Delivered as Imbalances (Account 806) 25
332Deliveries of Gas to Others for Transportation (Account 858) 26
Other Gas Delivered to Storage (Explain) 27
1,064,553509 3,025,727Gas Used for Compressor Station Fuel 28
Other Deliveries and Gas Used for Other Operations 29
34,220,584 120,411,726Total Deliveries (Total of lines 18 thru 29) 30
GAS LOSSES AND GAS UNACCOUNTED FOR 31
Gas Losses and Gas Unaccounted For 32
TOTALS 33
34,220,584 120,411,726Total Deliveries, Gas Losses & Unaccounted For (Total of lines 30 and 32) 34
Page 520FERC FORM NO. 2 (REV 01-11)