20230201Thies Exhibit 2 Schedules 1-3.pdf

DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY & GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
P.O. BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-3727
TELEPHONE: [phone]
FACSIMILE: [phone]
[e-mail]

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION ) CASE NO. AVU-E-21-01
OF AVISTA CORPORATION FOR THE ) CASE NO. AVU-G-21-01
AUTHORITY TO INCREASE ITS RATES )
AND CHARGES FOR ELECTRIC AND )
NATURAL GAS SERVICE TO ELECTRIC ) EXHIBIT NO. 2
AND NATURAL GAS CUSTOMERS IN THE ) OF
STATE OF IDAHO ) MARK T. THIES

FOR AVISTA CORPORATION

(ELECTRIC AND NATURAL GAS)

Standard & Poor's Moody's
Credit Outlook
A+A1
A A2
A-First Mortgage Bond A3 First Mortgage Bond
Secured Medium-Term Notes Secured Medium-Term Notes
BBB+Baa1
BBB Avista Corp./Corporate credit ratin Baa2 Avista Corp./Issuer ratin
BBB-Baa3 Trust-Originated Preferred Securitie
INVESTMENT GRADE
BB+Trust-Originated Preferred Securitie Ba1
BB Ba2
BB- Ba3
Stable Stable
AVISTA CORPORATION
Long-term Securities Credit Ratings
Page 1 of 5
Exhibit No. 2 Case No. AVU-E-23-01 & AVU-G-23-01 M. Thies, Avista
Schedule 1, Page 1 of 5
Percent of Component
Total Capital Cost Cost
Total Debt 50%4.92% 2.46%
Common Equity 50%10.25%(1)5.13%
Total 100%7.59%
Percent o Component
Total Capital Cost Cost
Total Debt 50% 4.84% 2.42%
Common Equity 50% 9.40%(2)4.70%
Total 100%7.12%
(1)Proposed return on common equity
(2)
June 30, 2022
Last approved ROE as of 09-01-2021.
AVISTA CORPORATION
Proposed Cost of Capital
December 31, 2023
AVISTA CORPORATION
Actual Cost of Capital
Page 2 of 5
Exhibit No. 2 Case No. AVU-E-23-01 & AVU-G-23-01 M. Thies, Avista
Schedule 1, Page 2 of 5
Line Coupon Maturit Settlemen Principal Issuance SWAP Discoun Loss/Reacq Net Yield t Outstanding
No.Description Rate Date Date moun Costs Loss/(Gain) (Premium) Expenses Proceeds Maturit 12/31/2
(a)(b)( c)(d)(e)(f)(g)(g)(h)(i)(j)(k)
1 DVANCE ASSOCIAT 6.090%1 6/1/37 6/3/97 40,000,00 1,296,08 - - (1,769,125 40,473,03 6.011% 40,000,00
2 FMBS - SERIES 6.370%6/19/28 6/19/98 25,000,00 158,304 - - 188,64 24,653,04 6.475% 25,000,00
3 FMBS - 6.25% 6.250%12/1/3 11/17/0 150,000,00 1,812,93 (4,445,000 367,500 - 152,264,56 6.139% 150,000,00
4 FMBS - 5.70% 5.700%7/1/37 12/15/0 150,000,00 4,702,30 3,738,00 222,000 - 141,337,69 6.120% 150,000,00
5 5.55% SERIES 5.550% 12/20/4 12/20/1 35,000,00 258,834 - - 5,263,82 29,477,34 6.788% 35,000,00
6 4.45% SERIES 4.450%12/14/41 12/14/11 85,000,00 692,83 10,557,00 - - 73,750,16 5.340% 85,000,00
7 4.23% SERIES 4.230%11/29/4 11/30/12 80,000,00 730,83 18,546,87 - 105,020 60,617,27 5.868% 80,000,00
8 4.11% SERIES 4.110%12/1/44 12/18/1 60,000,00 428,20 (5,429,000 - - 65,000,79 3.650% 60,000,00
9 4.37% SERIES 4.370%12/1/4 12/16/1 100,000,00 590,761 9,383,29 - - 90,025,94 5.017% 100,000,00
10 3.54% SERIES 3.540%12/1/51 12/15/1 175,000,00 1,042,56 53,966,19 - - 119,991,23 5.598% 175,000,00
11 3.91% SERIES 3.910%12/1/47 12/14/1 90,000,00 552,53 8,823,32 - - 80,624,13 4.550% 90,000,00
12 4.35% SERIES 4.350%6/1/48 5/22/18 375,000,00 4,246,44 26,580,10 378,750 - 343,794,70 4.881% 375,000,00
13 3.43% SERIE 3.430%12/1/49 11/26/1 180,000,00 1,108,34 13,330,10 - - 165,561,55 3.885% 180,000,00
14 3.07% SERIES 3.070%9/30/50 9/30/20 165,000,00 1,065,85 33,503,11 - - 130,431,02 4.323% 165,000,00
2.90% SERIES 2.900%10/1/51 9/28/21 140,000,00 1,100,00 17,244,10 - - 121,655,90 3.619% 140,000,00
15 4.00% SERIES 4.000%4/1/52 3/17/22 400,000,00 4,564,04 17,035,23 378,400,72 4.323% 400,000,00
17 Forecasted Issuanc 5.577%10/1/53 10/1/23 140,000,00 1,400,00 (9,265,422 147,865,42 5.205% 140,000,00
17 2,390,000,00
18
19 Repurchase 2 5.72%3/1/34 12/30/0 17,000,00 1,916,29 15,083,70 6.661%
20 Repurchase 2 6.55%10/1/32 12/31/0 66,700,00 3,709,17 62,990,82 7.034%
21
22 2,390,000,00
23
24 IDAHO TOTAL DEBT OUTSTANDING AND COST OF DEBT AT December 31, 2023 Adjusted Weighted Average Cost of Debt 4.92%
25
26
27 1 Average Monthly Average Rate over a twelve month period
28 #Coupon Rate at the time of repurchas
29 #Calculated using the Internal Rate of Return metho
AVISTA CORPORATIO
Cost of Long-Term Debt Detail - Idaho
December 31, 2023
Page 3 of 5
Exhibit No. 2 Case No. AVU-E-23-01 & AVU-G-23-01 M. Thies, Avista
Schedule 1, Page 3 of 5
1 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Avg of
2 (a)(b)(b)( c)(d)(e)(f)(g)(h)(i)(j)(k)(l)(m)(o)
3 Trust Preferred*$40,000,000 $40,000,000 $40,000,000 $40,000,000 $40,000,000 $40,000,000 $40,000,000 $40,000,000 $40,000,000 $40,000,000 $40,000,000 $40,000,000 $40,000,000 40,000,000$
4
5 Number of Days in Month 31 31 28 31 30 31 30 31 31 30 31 30 31
6 Forecasted Rates Trust Preferred 5.5720% 5.5720% 5.5720% 5.7439% 5.7439% 5.7439%5.2002% 5.2002% 5.2002%5.5614% 5.5614% 5.5614% 5.7404%
7 Trust Preferred Interest Expense 191,924$ 191,924$ 173,351$ 197,845$ 191,463$ 197,845$ 173,340$ 179,118$ 179,118$ 185,380$ 191,559$ 185,380$ 197,725$ 2,435,974$
8
9
10 Coupon Maturity Settlement Principal Issuance Loss/Reacq Net Yield to Outstanding Effective
11 Description Rate Date Date Amount Costs Expenses Proceeds Maturity 12/31/23 Cost
12 (a)(b)( c)(d)(e)(f)(g)(h)(i)(j)(k)
13 Trust Preferred 6.09% 6/1/37 6/3/97 40,000,000$ 1,296,086$ (1,769,125)$ 40,473,039$ 6.011% 40,000,000$ 2,404,589$
14
15 *Original issue principal amount was $50 million. The Company repurchased $10 million of the securities outstanding.
16 **Forecasted Rates are based on forward rates from Thomson Reuters analysis tools plus the 87.5 basis points pursuant to the debt agreement.
AVISTA CORPORATION
Cost of Long-Term Variable Rate Debt Detail
December 31, 2023
Page 4 of 5
Exhibit No. 2 Case No. AVU-E-23-01 & AVU-G-23-01 M. Thies, Avista
Schedule 1, Page 4 of 5
10-Q
06/30/2022 Adjustments
Adjusted
Regulatory
Balance
6/30/2022 Activity
us e
Regulatory
Balance
12/31/2023
Short-term Debt
Avista Corp 158,000$ (58,000)$ a 100,000$ a 100,000$
Subsidiaries b
Total short-term deb 158,000$ (58,000)$ 100,000$ -$ 100,000$
Long-term debt 2,287,606$ (70,606)$ c 2,217,000$ 133,000$ f 2,350,000$
Current Portion of long-term debt and capital leases 6,500 - c 6,500 (6,500) g -$
Debt to Affiliated Trust 51,547 (11,547) d 40,000 40,000$
Total long-term deb 2,345,653$ (82,153)$ 2,263,500$ 126,500$ 2,390,000$
Total Avista Corporation stockholders' equit 2,237,494$ (81,262)$ e 2,156,232$ 222,264$ h 2,378,496$
a
c
d
e
Equity Adjustments (dollars in thousands):
Capital Stock Expense 20,732$
Accumulated other comprehensive loss 10,490$
Investment in AERC (112,484)$
Total (81,262)$
f
g $6.5 million of debt matures in May 2023 and $7 million matures in August 2023.
h Forecasted Equity Activity (dollars in thousands):
Equity Activity 219,409$
Change in equity in AERC 2,855$
Total 222,264$
AVISTA CORPORATION
Represents the issuance of long-term debt. There are forecasted issuance of $140 million in 2023. For additional details related to this issuance see
page 3 of this Exhibit.
We hold $11.547 million of these securities. The $40 million adjusted balance relates to the current outstanding balance to third party investors.
We exclude the following: capital stock expense; in order to recover the costs incurred for issuing equity, an amount equivalent to the investment in
AERC, and accumulated other comprehensive loss; in order to reflect our actual equity balance.
Capital Structure Reconciliation
(dollars in thousands)
Adjusted to reflect short term debt balances on a monthly average.
We exclude short-term borrowings outstanding at our subsidiaries.
These adjustments are made to reflect our actual principal amount outstanding. We exclude amounts related to settled interest rate swaps and
unamortized debt discount. The amounts related to settled interest rate swaps and unamortized debt discount are included as a cost of debt.
Additionally, amounts related to capital leases and subsidiary long-term debt are excluded from Avista Utilities long-term debt.
Long-term Debt
Equity
Page 5 of 5
Exhibit No. 2 Case No. AVU-E-23-01 & AVU-G-23-01 M. Thies, Avista
Schedule 1, Page 5 of 5
Exhibit No. 2
Case No. AVU-E-23-01 & AVU-G-23-01
M. Thies, Avista
Schedule 2, Page 1 of 1
CONFIDENTIAL subject to Attorney’s Certificate of Confidentiality
Interest Rate Risk Management Plan
Pages 1 of 10
$475 $475 $475 $475
De
b
t
Is
s
u
a
n
c
e
s
Ca
p
i
t
a
l
Ex
p
e
n
d
i
t
u
r
e
s
De
b
t
Is
s
u
a
n
c
e
s
Ca
p
i
t
a
l
Ex
p
e
n
d
i
t
u
r
e
s
De
b
t
Is
s
u
a
n
c
e
s
Ca
p
i
t
a
l
Ex
p
e
n
d
i
t
u
r
e
s
De
b
t
Is
s
u
a
n
c
e
s
Ca
p
i
t
a
l
Ex
p
e
n
d
i
t
u
r
e
s
2023 2024 2025 2026
Forecasted Issuance Amount Hedged Capital Expenditures
Redacted
Exhibit No. 2 Case No. AVU-E-23-01 & AVU-G-23-01 M. Thies, Avista
Schedule 3, Page 1 of 1