2001Annual Report.pdf

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Form Approved
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FERC FORM NO. 2:
ANNUAL REPORT OF MAJOR NATURAL
GAS COMPANIES
This report is mandatory under the Natural Gas Act, Sections 10(a) and 16, and 18 CFR
260.1. 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 this
Exact Legal Name cfRespondent (Company)
AVISTA CORP.
Year of Report
Dec.31
FERC FORM NO.2 (r-99)
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INSTRUCTIONS FOR FILING THE
FERC FORM NO.2
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GENERAL INFORMATION
Purpose
This form is designed to collect financial and operational information from major intersliate natural gas companies subject
to the jurisdiction of the Federal Energy Regulatory Commission. This report is a nonconfidential public use form.
Who Must Submit
Each Major natural gas company which meets the filing requiremenG of 18 CFR 260.1 must submit this form.
NOTE: Major means having combined gas transported or stored for a fee exceeding 50 million Dth in each of the 3
previous calendar years.
What and Where to Submit
(a) Submit the electronic medium in accordance with the procedures specified in 18 CFR S 385.2011 and an
original and four (4) copies of this form to:
Office of the Secretary
Federal Energy Regulatory Commission
Washington, DC20426
Retain one copy of this report for your files.
(b) Submit immediately upon publication, four (4) copies of the latest annual report to stockholders and any annual
financial or statistical report regularly prepared and distributed to bondhotders, security analysts, or industry
associations. (Do not include monthly and quarterly reports. lndicate by checking the appropriate box on page
3, List of Schedules, if the reports to stockholders will be submitted or if no annual report to stockholders is
prepared.) Mailthese reports to:
Chief Accountant
Federal Energy Regulatory Commission
Washington, DC 20426
(c) For the CPA certification, submit with the original submission of this form, a letter or report (not applicable to
respondents classified as Class C or Class D prior to January 1, 1984) prepared in conformity with current
standards of reporting which will:
(i) contain a paragraph attesting to the conformity, in all material respects, of the schedules listed below
with the Commission's applicable Uniform System of Accounts (including applicable notes relating
thereto and the Chief Accountants published accounting releases), and
FERC FORM NO.2 (12-96)Page i
GENERAL INFORMATION
(ii) be signed by independent certified public accountants or independent licensed public accountants,
certified or licensed by a regulatory authority of a State or other political subdivision of the United
States (See 18 CFR 158.10-158.12 for specific qualifications.)
ReferenceSchedules Paoes
Comparative Balance Sheet 110-113
Statement of lncome 114-116
Statement of Retained Eamings 1 1 8-1 19
Statement of Cash Flows 120-121
Notes to Financial Statements '|.22
lnsert the letter or report immediately following the cover sheet of the original and each copy of this form.
(d) Federal, State and Local Governments and other authorized users may obtain additional blank copies to meet
their requirement free of charge from:
Public Reference and Files Maintenance Branch
Washington, DC20426
(202\ 208-2356
lV. When to Submit
Submit this report form on or before April 30th of the year following the year covered by this report.
V. Where to Send Comments on Public Reporting Burden
The public reporting burden for this collection of information is estimated to average 2,475 hours per response, including
the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information. Send comments regarding this burden estimate or any aspect of
this collection of information, including suggestions for reducing this burden, to the Federal Energy Regulatory
Gommission, Washington, DC20/'26 (Attention: Michael Miller, ED-12.4); and to the Office of lnformation and
Regulatory Affairs. Office of the Management and Budget, Washington, DC 20503 (Attention: Desk Officer for the
Federal Energy Regulatory Commission).
You shall not be penalized for failure to respond to this collection of information unless the collection of information
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FERC FORM NO.2 (12-96)Page il
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GENERAL INSTRUCTIONS
Prepare this report in conformity with the Uniform Systerns of Accounts (18 CFR 201XU.S. of A.). lnterpret all
accounting words and phrases in accordance with the U.S. of A.
Enter in whole numbers (dollars or Dth) only, except where othenvise noted. (Enter cents for averages and figures per
unit where cents are important.) The truncating of cents is allowed except on the four basic financial statements where
rounding to dollars is required. The amounts shown on all supporting pages must agree with the amounts entered on
the statements that they support. When applying thresholds to determine significance for reporting purposes, use for
balance sheet accounts the balances at the end of the cunent reporting year, and use the cunent year amounts for
statement of income accounts.
Complete each question fully and accurately, even if it has been answered in a previous annual report. Enter the word
"None" where it truly and completely states the fact.
For any page(s) that is not applicable to the respondent, either
(a) Enter the words "Not Applicable" on the particular page(s), or(b) Omit the page(s) and enter "NA,' "NONE," or "Not Applicable" in column (d) on the List of Schedules, pages 2
and 3.
Enter the month, day, and year for all dates. Use customary abbreviations. The "Date of Report' at the top of each
page is applicable only to resubmissions (see Vll. below).
lndicate negative amounts (such as decreases) by enclosing the figures in parentheses ( ).
When making revisions, resubmit the electronic medium and only those pages that have been changed from the original
submission. Submit the same number of copies as required for filing the form. lnclude with the resubmission the
ldentification and Attesiation, page 1. Mail dated resubmissions to:
Chief Accountant
Federal Energy Regulatory Commission
Washington, OC2O426
Provide a supplemental statement further explaining accounts or pages as necessary. Attach the supplemental
statement (8 112by 11 inch size) to the page being supplemented. Provide the appropriate identification information,
including the title(s)of the page and the page numbersupplemented.
Do not make references to reports of previous years or to other reports in lieu of required entries, except as specifically
authorized.
Wherever (schedule) pages refer to figures from a previous year, the figures reported must be based upon those shown
by the annual report of the previous year, or an appropriate explanation given as to why the different figures were used.
Report all gas volumes in MMBIU and Dth.
Respondents may submit computer printed schedules (reduced to 8 112 x 11) instead of the schedules in the FERC
Form 2 if they are in substantially the same format.
Report footnotes on pages 551 and 552. Sort data on page 551 by page number. Sort data on page 552 by footnote
number. The page number component of the footnote reference is the first page of a schedule whether it is a single
page schedule or a multi-page schedule. Even if a footnote appears on a later page of a multi-page schedule the
footnote will only reference the first page of the schedule. The first page of a multi-page schedule now becomes a
proxy for the entire schedule. For example, Gas Plant in Service ranges across pages 204 through 209. A footnote on
207 would contain a paqe reference of
m.
tv.
vt.
vil.
tx.
X.
xt.
xil.
vilt.
xilt.
FERC FORM NO.2 (12-96)Page iii
DEFINITIONS
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ilt.
tv.
Btu oer cubic foot-The total heating value, expressed in Btu, produced by the combustion, at constant pressure, of the
amount of the gas which would occupy a volume of 1 cubic foot at a temperature of 60'F if saturated with water vapor
and under a pressure equivalent to that of 30 inches of mercury al32"F , and under standard gravitational force
(980.665 crn. per sec. ) with air of the same temperature and pressure as the gas, when the products of combustion
are cooled to the initial temperalure of gas and air when lhe water formed by combustion is condensed to the liquid
state (called gross heating value or total heating value).
Commission Authorization-The authorization of the Federal Energy Regulatory Commission, or any other Commission.
Name the Commission whose authorization was obtained and give date of the authorization.
Dekathenn-A unit of heating value equivalent to 10 therms or 1,000,000 Btu.
Resoondent-The person, corporation, licensee, agency, authority, or other legal entity or instrumentality on whose
behalf the reoort is made-
EXCERPTS FROM THE LAW
(Natural Gas Act, 15 U.S.C. 717-717w1
"Sec,1 0(a). Every natural{as company shall file with the Commission such annual and other periodic or special reports as
the Commission may by rules and regulations or order prescribe as necessary or appropriate to assist the Commission in the
proper administration of this act. The Commission may prescribe the manner and form in which such reports shall be made and
require from such natural-gas companies specific answers to all questions upon which the Commission may need information.
The Commission may require that such reports shall include, among other things, full infonnation as to assets and liabilities,
capitalization, investment and reduction thereol gross receipts, interest due and paid, depreciation, amortization, and other
reserves, costs of facilities, cost of maintenance and operation of facilities for the production, transportation, delivery, use, or
sale of natural gas, cost of renewal and replacement of such facilities, transportation, delivery, use, and sale of natural gas..."
"Sec. 16. The Commission shall have power to perform any and all acts, and to prescribe, issue, make, amend, and rescind
such orders, rules, and regulations as it may find necessary or appropriate to carry out the provisions of this act. Among other
things, such rules and regulations may define accounting, technical, and trade terms used in this act; and may prescribe the form
or forms of all statements declarations, applications, and reports to be filed with the Comrnission, the information which they
shallcontain, and time within which thev shall be filed..."
GENERAL PENALTIES
"Sec.21(b). Any person who willfully and knowingly violates any rule, regulation, restriction, condition, or order made or
imposed by the Commission under authority of this act, shall, in addition to any other penalties provided by law, be punished
uoon conviction thereof bv a fine of not exceedino $500 for each and everv dav durino which such offense occurs."
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FERC FORM NO.2 (12-96)Page iv
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ANNUAL REPORT OF IiAJOR NA GAS COMPANIES
FERC FORii NO.2:
01 Exact Legal Name of Respondent
Avista Corp.
02Year of Report
o"". et.2001
03 Previous Name and Date of Change (lf name changed duing year)
Avista Corp.
04 Address of Principal Office at End of Year (Sfreef, City, State, Zip Code)
1411E. Mission Avenue, Spokane, WA 99202
05 Name of Contact Person
J. E. Eliassen
06 Title of Contact Person
Sr VP & CFO
07 Address of Contact Person (Sfraef, City, State, Zip Code)
1411E. Mission Avenue, Spokane, WA 99202
08 Telephone of Contract Person, lncluding Area Code
(s09) 4es-2046
09 This Report is:
E Rn originat
tr A Resubmission
10 Date of Report
(Mo, Da, Yfi
04t30t2002
The undersigned officer certifies that he/she has examined the accompanying report; that to the best of his/her knowledge,
information, and belief, all statements of fact contained in the accompanying report are true and the accompanying report is a
conect statement of the business and afiairs of the above named respondent in respect to each and every matter set forth
December 31 of the vear of the
11 Name
J. E. Eliassen
12 Title
Senior Vice President and CFO
14 Date Signed
04130t2002
Tifle 18, U.S.C. 1001, makes it a crime for any person knowingly and willingly to make to any Agency or Department of the
as to any matter within its
FERC FORM NO.2 (12-96)Page 1
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Name of Respondent This Report ls:
f] nn original
E A Resubmission
Date of Repoit
(Mo, Da, Yr)
Year of Report
Dec.31, __
LIST OF SCHEDULES (Natural Gas Comoanv)
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 page
where the resDonses are "none." 'not aoolicable." or "NA."
Line
No.
Title of Schedule
la)
Reference
Page No.
th\
Date Revised
1el
Remarks
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1
2
3
4
5
6
7
8I
10
'1 1
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
GENEML CORPORATE INFORMATION AND
FINANCIAL STATEMENTS
General lnformation
Control Over Respondent
Corporations Controlled by Respondent
Security Holders and Voting Powers
lmportant Changes During the Year
Comparative Balance Sheet
Statement of lncome for the Year
Statement of Retained Eamings for the Year
Statements of Cash Flows
Notes to Financial Statements
BALANCE SHEET SUPPORTING SCHEDULES
(Assets and Other Debits)
Summary of Utility Plant and Accumulated Provisions for Depreciaiion,
Amortization, and Depletion
Gas Plant in Service
Gas Propefi and Capacity Leased from Others
Gas Property and Capacity Leased to Others
Gas Plant Held for Future Use
Construction Work in Progress-Gas
General Description of Construction Overhead Procedure
Accumulated Provision for Depreciation of Gas Utility Plant
Gas Stored
lnvestments
lnvestments in Subsidiary Companies
Prepayments
Extraordinary Property Losses
Unrecovered Plant and Regulatory Study Costs
Other Regulatory Assets
Miscellaneous Defened Debits
Accumulated Deferred lncome Taxes
BALANCE SHEET SUPPORTING SCHEDULES
(Liabilities and Other Credits)
Capital Stock
Capital Stock Subscribed, Capital Stock Liability for Conversion, Premium on
Capital Stock, and lnstallments Received on Capital Stock
Other Paid-in Capital
Discount on Capital Stock
Capital Stock Expense
Securities issued or Assumed and Securities Refunded or Retired During
the Year
Long-Term Debt
Unamortized Debt Expense, Premium, and Discount on Long-Term Debt
Unamortized Loss and Gain on Reacquired Debt
Reconciliation of Reported Net lncome with Taxable lncome for Federal
lncome Taxes
't01
102
103
107
108
1 10-1 13
114-116
1 18-1 19
120-121
122
200-201
204-209
212
213
214
216
218
2'.t9
220
222-223
224-22s
230
230
230
232
233
234-235
2s2
253
254
254
250-251
2s5
2s6-257
258-259
260
261
FERC FORM NO.2 (12-96)Page 2
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Name of Respondent This Report ls:
E nn originat
E A Resubmission
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31, ____
LIST OF SCHEDULES (Natural Gas ComoanvXContinued)
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 page
where the resDonses are 'none." 'not aoolicable." or "NA".
Line
No.
Title of Schedule Reference'Page No.
/hl
Date Revised
(cI
Remarks
(dl
38
39
40
41
42
43
44
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48
49
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51
52
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54
55
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60
61
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64
65
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67
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69
70
57
58
59
71
BALANCE SHEET SUPPORTING SCHEDULES
(Liabilities and Other Credits)(Continued)
Taxes Accrued, Prepaid, and Charged During Year
Miscellaneous Cunent and Accrued Liabilities
Other Defened Credits
Accumulated Defened lncome Taxes-Other Property
Accumulated Defened lncome Taxes0ther
Other Regulatory Liabilities
INCOME ACCOUNT SUPPORTING SCHEDULES
Gas Operating Revenues
Revenues from Transportation of Gas of Others Through Gathering Facilities
Revenues from Transportation of Gas of Others Through Transmission Facilities
Revenues from Storage Gas of Others
Other Gas Revenues
Gas Operation and Maintenance Expenses
Exchange and lmbalance Transactions
Gas Used in Utility Operations
Transmission and Compression of Gas by Others
Other Gas Supply Expenses
Miscellaneous General ExpensesGas
Depreciation, Depletion, and Amortization of Gas Plant
Particulars Concerning Certain lncome Deduction and lnterest
Charges Accounts
COMMON SECTION
Regulatory Commission Expenses
Distribution of Salaries and Wages
Charges for Outside Professional and Other Consultative Services
GAS PLANT STATISTICAL DATA
Compressor Stations
Gas Storage Projects
Transmission Lines
Transmission System Peak Deliveries
Auxiliary Peaking Facilities
Gas Account-Natural Gas
System Map
Footnote Reference
Footnote Text
Stockholders' Reports (check appropriate box)
Four copies will be submitted.
No annual report to stockholders is prepared.
tr
tr
262-263
268
269
274-275
276-277
278
300-301
302-303
304-305
306-307
308
317-325
328
331
332
334
335
336-338
340
350-351
354-3s5
3s7
508-509
512-5'13
514
518
519
520
522
551
552
FERC FORM NO.2 (12-96)Page 3
This Page Intentionally Left Blank
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Name of Respondent
Avista Corp.
This Report ls:
(1) E An Original
(2) tr A Resubmission
Date of Report
(Mo, Da, Yr)
0413012002
Year of Report
Dec. 31, g1
GENERAL INFORMATION
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 ditferent from that where the general corporate books are kept.
it. E. EllassGD, soaior Vice Presid.Dt aad cbiof Fiaancial officer
1{11 E. ul,ssion Av.nuo
gDokaDo, wA 99202
2. Provide the name of the State under the laws of which respondent is incorporated, and date of incorporation.
lf incorporated under a special law, give reference to such law. lf not incorporated, state that fact and give the type
of organization and the date organized.
stato of wasbLngrton, Incorporatod uarcb 15, 1889
3. lf at any time during the year the property ol 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.
lsot lDIrlicrblc
4. State the classes or utility and other services furnished by respondent during the year in each State in which
the respondent operated.
Elactric rezwlce In the rtata. of rlasbiagrton, Idaho end ![oDtaDa
Natural grar rcrrrice in the rtat€a of, warbingt,on, Idabo, Or€gon, and Callforaia
5. Have you engaged as the principal accountant to audit your linancial statements an accountant who is not
the principal accountant for your previous year's certified financial statements?
(1) tr Yes...Enter the date when such independent accountant was initially engaged:
(2) E No
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IFERC FORM NO.2 (ED. 12{A PAGE 101
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Name of Respondent
Avista Corp.
This ReDort ls:(1) E]An orisinal
(21 1-1A Resubmission
uate ol HeDon(Mo, Da, Yi)
0413012002
Year ot Report
Dec.31, 2oo1
CORPORATIONS CONTROLLED BY RESPONDENT
1. Report below the names of all corporations, business lrusts, and similar organizations, controlled directly or indirectly by respondenl
at any time during the year. lf control ceased prior to end of year, give particulars (details) in a footnote.
2. lf control was by other means than a direct holding of voting rights, state in a lootnote the manner in which control was held, naming
any intermediaries involved.
3. lf control was held jointly with one or more other interests, state the fact in a footnote and name the other interests.
Definitions't. 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. lndirect control is that which is exercised by the interposition of an intermediary which exercises direct control.
4. Joint control is that in which neither interest can etfectively 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.
Line
No.
Name of Company Controlled
(a)
Kind ol Business
(b)
Percent Voting
Stock Owned
(c)
Footnote
Ref.
(d)
1 Avista Capital Parent company to all of the
2 Company's subsidiaries.100
3
4 Avista Advantage, lnc.Provides various energy 100
5 services, such as lnternet-
6 based specialty billing and
7 inlormation services.
8
I Avista Gommunications, lnc.An lntegrated Communications 100
10 ProvilJer (lCP) providing
1l local telecommunications
12 solutions and designs, builds
13 and manages metropolitan
't4 area fiber optic networks.
t5
16 Avista Development, lnc.Nonoperating company which 100
17 maintains a small investment
't8 portfolio of real estate and
19 other investments.
20
21 Avista Energy, lnc.Wholesale power trading and 100
22 marketing.
23
24 Avista Laboratories, lnc.Develops proton exchange 100
25 msmbrano (PEM) fuel cell
26 technology and fuel cell
27 components.
FERC FOBM NO. 2 (ED. 12-96)Page 103
Name ol Respondent
Avista Corp.
This Reoort ls:(1) [An Original(21 nA Resubmission
Date of Report(Mo, Da, Yr)
0413012002
Year ol Report
Dec.31, 2oo1
CORPORATIONS CONTROLLED BY RESPONDENT
1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indlrectly by respondent
at any time during the year. lf control ceased prior to end of year, give particulars (details) in a footnote.
2. lf 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. lf control was held jointly with one or more other interests, state the fact in a footnote and name the other interests.
Delinitions
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. lndirect control is that which is exercised by the interposition of an intermediary which exercises direct control.
4. Joint control is that in which neither interest can effectively control or direct action wilhout the consent of the other, as where the
voting control is equally divided between two holders, or each party holds a veto power over lhe other. Joint control may exist by
mutual agreement or underslanding 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 parly.
Line
No.
Name of Company Controlled
(a)
Kind ol Business
(b)
Percent Voting
Stock Owned
(c)
Footnote
Ref.
(d)
1
2 Avista Power, LLC.Develops/owns electric 100
3 generation assets.
4
5 Avista Services, lnc.Off ers producbi/services to 100
6 utility customers.
7
8 Avista Turbine Power, lnc.Develops electric generation 100
I assets.
10
11 Avista Rathdrum, LLC Develops electric generation 100
12 assets.
13
14 Avista Ventures, lnc.lnvests in emerging business 100
15 )pportunities.
16
17 PenEer Corporation Within Avista Capital;100
18 parent company of Advanced
19 Manufacturing and
20 Development.
21
?2 Advanced Manufacturing and Development, lnc.Manufactu rer of electronic 93
23 and mechanical equipment
24 for the computer and
25 instrumentation industries
26 and fabricates video arcade
27 games.
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IFERC FORM NO.2 (ED. 12-96)Page 103.1
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Name of Respondent
Avista Corp.
This Rsoort ls:(1) E]An Orisinal(2) nA Resubmission
uare or Hepon(Mo, Da, Yr)
o413012002
Year of Report
Dec.31, 2oo1
CORPORATIONS CONTROLLED BY RESPONDENI
1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by respondent
al any time during the year. lf control ceased prior to end of year, give particulars (details) in a footnote.
2. lf 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. lf control was held jointly with one or more other interests, state the lact in a footnote and name the other interests.
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. lndirect control is that which is exercised by the interposition of an intermediary which 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 agreemenl or understanding between two or more parties who together have control within the meaning of the definition of
control in the Uniform System of A@ounts, regardless of the relative voting rights of each party.
Line
No.
Name of Company Controlled
(a)
Kind ol Business
(b)
Percent Voting
Stock Owned
(c)
FOOInOIe
Rel.
(d)
1
2 WWP Receivables Corporation Acquires and sells acrounts 100
3 receivable ol Avista Corp.
4
5 INDIRECT CONTROL:
6 Rathdrum Power, LLC Develops el€ctric generation 49
7 assets.
8
I Coyote Springs 2, LLC Develops electric generation 50
10 assets.
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
FERC FORM NO.2 (ED. 12-96)Page 103.2
Name ol Respondent
Avista Corp.
This Reoort ls:(1) EIRn originat(2) l-'lA Resubmission
uale ot Heoon(Mo, Da, Yi)
o4t30t2002
Year or Hepon
Dec.31, 2001
SECURIry HOLDERS AND VOTING POWERS
1. Give the names and addresses o, the 10 socurity 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 which
each would have had the right to cast on that date if a meeting were then in order. lf any such holder held in trust, give in a footnote the known
particulars of the trust(whether voting trust, etc.) duration ol trust, and principal holders of beneficiary interests in the trust. lf the stock book was not
closed or a list of stockholders was not compiled within one year prior to the end of the year, or if since the previous compilation of a List ol 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 ot voting power, @mmencing with the highest. Show in column (a) the titles of officers and directors included in such
list of 10 security holders.
2. lt any security other than stock carries voting rights, explain in a lootnote the circumstances whereby such security became vested with voting rights
give other important particulars (details) conceming voting rights of such security. State whether voting right are actual or contingent; if contingent,
describe the contingency.
3. lf any class or issue of security has any special privileges in the election of directors, trustees or managbrs, or in the determination of corporate
action by any method explain briefly in a footnote.
4. Fumish particulars (details) concerning any options wanants, or rights outstanding at the end of the year 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 right the amount of such securities or assets so entitled to purchased by any officer, director, associated company,
or of the ten largest security holders. This instruction is inapplicable to convertible securities or to any securities substantially all of which are outstanding
in the hands of the public where the options, warrants, or righE were issued prorata basis.
1. Give the date of the latest closing of the stock
book prior to end of year, and state the purpose
of such closing:
November 23, 2001 to pay the December 14, 2001
dividend
2. State the totrl number ol votes cast at the
latest general meeting prior to end of year
for election of directors of the respondent and
number of such votes cast by proxy
Total: 41,281,081
By Prory: 41,273'058
3. Give the date and
place of such meeting
May 10, 2001
Spokane, Washington
Line
No.
Name ffiile) and Address of Security
Holder
(a)
Number of Votes as of (date):
VOTING SECURITIES
1112312001
Total
Votes
(bl
Common
Stock
(c)
Prelerred
Stock
(d)
Other
(e)
4 TOTAL votes of all voting securities 47,386,88i 47,386,88i
5 TOTAL number of s€curity holders 20,17(20,17(
6 TOTAL votes of security holders listed below 358,45r 368,45/
7
8 DBH Properties LP - Coeur d'Alene, lD Tt,ila 77,64(
9 Otis Kline TR U/A - Tempe, AZ 70,00(70,00(
10 Harold J. White TR U/A - Spokane, WA 46,891 46,891
11 Margaret Ann Brosnan TR U/A - lndependen 31,00(31,00(
12 Alfred C. Glassell Jr. - Houston, TX 30,02t 30,02t
13 Gladys L. Rikerd - Spokane, WA 25,Ut 25,341
14 Paul Friedrich Eisen TR U/A - San Franci
15 Kay Kobayashi - Los Angeles, CA 22,091,22,O92
16 Darlene L. Braune & Edmund W. Braune JT
17 - Spokane, WA 21,83t 21,83t
18 Ernest C. Gosnay Jr. & Marie K. Gosnay T 20,011 20,011
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tFERC FORM NO.2 (ED.12-96)Page 106
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Name oI Hesponoenl
Avista Corp.
This Reoort ls:(1) [.]nn Original(2) l--lA Resubmission
Date ol Reoort(Mo, Da, Yi)
o4t3012002
Year ol Report
Dec. 31, 2001
SECURaTY HOLDERS AND VOTING POWEHS (Continued)
Line
No.
Name Cfilb) and Address of Securig
Holder
(a)
Total
Votes
(b)
Common
Stock
(c)
Prefened
Stock
(d)
Other
(e)
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
/|(}
M
45
46
47
48
49
50
51
52
53
I ,.r. FoRM No.2 (ED.12-e6)Page 107
Name ot Hesponoenl
Avista Corp.
lhts Heport ls:(1) El An Original(2) ! A Resubmission
uare or F{epon
o413012002
Year or Hepon
Dec.31, 2001
IMPORTANT CHANGES DURING THE YEAR
Give particulars (details) concerning the matters indicated below. Make the statements explicit and precise, and number them in
accordance with the inquiries. Each inquiry should be answered. Enter'none," "not applicable,' or "NA' where applicable. lf
information which answers an inquiry is given elsewhere in the report, make a reference to the schedule in which it appears.
1. Changes in and important additions to franchise rights: Describe the actual consideration given therefore and state from whom the
franchise rights were acquired. lf 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 transaclion, and reference to
Commission authorization.
3. Purchase or sale of an operating unit or system: Give a brief description of the property, and of the transactions relating thereto,
and reference to Commission authorization, if any was required. Give date journal entries called for by the Uniform System of Accounts
were submitted to the Commission.
4. lmportant 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 condition. State name of Commission authorizing lease and give
reference to such authorization.
5. lmporlant extension or reduction ol transmission or distribution system: State tenitory added or relinquished and date operations
began or ceased and give reference to 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 souroes of gas made available to it from purchases, development, purchase contract or othenrvise, giving location and
approximate total gas volumes available, period of contracts, and other parties to any such arrangements, etc.
6. Obligations incurred as a result of issuance of securities or assumplion of liabilities or guaranlees including issuance of short-term
debt and commercial paper having a maturity of one year or less. Give reference to FERC or State Commission authorization, as
appropriate, and the amount of obligation or guarantee.
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 reporl in which an officer,
director, security holder repoiled on Page 106, voting trustee, associated company or known associate of any of these persons was a
party or in which any such person had a material interest.
11. (Reserved.)
12. lf the important changes during the year relating to the respondent company appearing in the annual report to stockholders are
applicable in every respect and lurnish the data required by lnstructions 1 to 11 above, such notes may be included on this page.
PAGE lOS INTENTIONALLY LEFT BI.ANK
SEE PAGE 109 FOR REQUIRED INFORMATION.
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tFERC FORM NO. 2 (ED.12-96)Page 108
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l.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
None
None
None
None
None
ReferenceismadetoNotes 6,13,14,15, 16,17, 18and20of NotestoFinancialStatements,PageL22 of thisReport.
None
Average annual wage increases were 3.2Vo in200l for clerical, technical and exempt personnel. Bargaining unit employees
were granted a2.5?o increase.
Reference is made to Note 24 of Notes to Financial Statements, Page 122 of this Report.
None.
N/A
See Page 122 ofthis Report.
I
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da,-Yr)
0413012002
Year of Report
Dec 31, 2001
IMPORTANT CHANGES DURING THE YEAR (Continued)
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FORM NO.2 109
Name of Respondent
Avista Corp.
This Report ls:
(1) tr An Original
(2) tr A Resubmission
Date of Report
(Mo, Da, Y)
04t30t2002
Year of Report
Dec.31 , 2001
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)
Line
No.
Tite of Account
. (a)
Ref.
Page No.
(b)
Balance at
Beginning of Year
(c)
Balance at
End ol Year
(d)
1 UflL]TY PLANT
2 Utility Plant (101-106, 114)200-201 2,205,229,76t 2,277,779,491
3 Construction Work in Prooress (107)200-201 33,535.63;54.964,082
4 TOTAL Utility Plant (Enter Total of lines 2 and 3)2,238,765,39i 2,332,743,573
5 (Less) Accum. Prov. for Depr. Amort. Depl. (108, 111, 115)200-20'l 720,453,52'767,101,656
6 Net Utility Plant (Enter Total of line 4 less 5)1 ,518,31 1 ,87(1,565,641,917
7 Nuclear Fuel (120.'l-1 20.4, 1 20.6)202-203 0
8 (Less) Accum. Prov. lor Amort. ol Nucl. Fuel Assemblies (120.5)202-203 0
I Net Nuclear Fuel (Enter Toial of line 7 less 8)0
10 Net Utilitv Plant (Enter Total ol lines 6 and 9)'t,518,311,87(1,565,641,917
11 Utility Plant Adjustments (1 l6)122 0
12 Gas Stored Underground - Noncurrent (1 17)0
13 OTHER PROPERTY AND INVESTMENTS
14 Nonutilitu Prooertv ('t 2'l )221 2,765,83t 3,741.0s8
15 (Less) Accum. Prov. lor Depr. and Amon. (122)197,731 224,549
16 lnvestments in Associated Companies (123)0
17 lnvestment in Subsidiary Gompanies (123.1)224-225 361 .836.801 350,746,583
18 (For Cost of Account 1 23. 1, See Footnote Page 224, line 421
19 Noncurrent Portion of Allowances 228-229 0
20 Other lnvestments (124)57.378.99i 50,536,283
21 Special Funds (125-128)18,527,20t 't2,076,s98
22 TOTAL other Property and lnvestnents (fotal ot lines 14-17,19-21)/140,31 1,10 416,875,973
23 CURRENT AND ACCRUED ASSETS
24 Cash (131)-2.637.70!-513,763
25 Special Deposits (132-134)1.205.00(2,890,636
26 Workino Fund (135)245,06',423,725
27 Temporary Cash lnvestments (136)17,714,441 7,648,782
28 Notes Receivable (141)0
29 Customer Accounts Receivable (1 42)203.722.321 49,675,973
30 Oher Accounts Receivable (143)3,566,41t 5,295,153
3'l (Less) Accum. Prov. for Uncollectible Acct.-Credit ('144)2.535.05(2,949,912
32 Notes Receivable lrom Associated Companies (145)113.588.33t 182,111,918
33 Accounts Beceivable from Assoc. Companies (146)930,301 -2,022.783uFuel Stock (151)227 1.825.79,3,395,773
35 Fuel Stock Expenses Undistributed (152)227 0
36 Residuals {Elec) and Extracted Products (153)227 0
37 Plant Materials and Operating Supplies (154)227 9,336,102 I,015,274
38 Merchandise (155)227 0
39 Other Materials and Supplies (156)227 14,82t 0
40 Nuclear Materials Held lor Sale (157)202-203t227 0
4'l Allowances (158.1 and 158.2)228-229 0
42 (Less) Noncurrent Portion of Allowances 0
43 Stores Expense Undistributed (1 63)227 677,151 578,289
44 Gas Stored Underoround - Current (164.1)5,703,91;6,168,382
45 Liouefied Natural Gas Stored and Held lor Processino (164.2-164.3)636,14(631,780
46 Prepayments (165)3,567,47t 2,185,343
47 Advances for Gas (166-167)0
48 lnterest and Dividends Receivable (171)168,80(250,267
49 Rents Receivable (172)736,22t 737,960
50 Accrued Utilitv Revenues {'t73)0
51 Miscellaneous Cunent and Accrued Assets (174)2,320,791 1,018,091
52 TOTAL Current and Accrued Assets (Enter Total ol lines 24 thru 5'l)360.786.39 266,540,888
FERC FORM NO.2 (ED.12-94)Page 110
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Name of Respondent
Avista Corp.
This Report ls:
(1) tr An Original(2) n A Resubmission
Date of Report
(Mo, Da, Yr)
o41fit2002
Year of Report
DeC. 31, 200'l
COMPARATIVE BALANCE SHEET (ASSETS AND OTHEB DEBlTslcontrnued)
Line
No.
Title ol Account
(a)
Rel.
Page No.
(b)
Balance at
Beginning of Year
(c)
Balance at
End of Year
(d)
53 DEFEBRED DEBITS
54 Unamortized Debt Exoenses {181)13,713,61i 26,075,057
55 Extraordinarv Propertv Losses (1 82.1 )230 0
56 Unrecovered Plant and Reoulatorv Studv Costs (182.2)230 0
57 Other Reoulatorv Assets (182.3)232 162,517,591 ,145,035,675
58 Prelim. Survev and lnvestioation Chames (Electric) (183)54,211 7,973,065
59 Prelim. Sur. and lnvest. Charges (Gas) (183.1, 183,2)0
60 Clearino Accounts (1 84)720,62i -2,081 ,155
61 Temporary Facilities (185)0
62 Miscellaneous Delerred Debits (186)233 64,351,53(109,424,216
63 Def. Losses from Disoosition of Utility Plt. (187)0
64 Research, Devel. and Demonstration Epend. (188)352-353 0
65 Unamortized Loss on Reaouired Debt (189)14,160,16i 15,147,127
66 Accumulated Deferred lncome Taxes (190)2U 58.647.471 27,044,942
67 Unrecovered Purchased Gas Costs (191)41,067,83!52,679,575
68 TOTAL Delened Debits Gnter Total ol lines 54 thru 67)3s5,233,04t 681,298,s02
69 TOTAL Assets and Other Debits Gnter Total of lines 10.11.12,22,52,68)2,674,642,4't(2,930,357,280
FERC FORM NO.2 (ED. 12-94)Page 111
Name of Respondent
Avista Corp.
This Report ls:
(1) tr An Original
(2) tl A Resubmission
Date of Report
(Mo, Da, Yr)
o4t3012002
Year of Report
Dec.31 , 2oo1
CoMPARATTVE BALANCE SHEET (LrABrLrTrES AND OTHER CREDTTS)
Line
No.
Title of Account
(a)
Ref.
Page No.
(b)
Balance at
Beginning of Year
(c)
Balance at
End of Year
(d)
1 PROPRIETARY CAP]TAL
2 Common Stock lssued (201)250-2s1 610,740,59(617,737,210
3 Prelerred Stock lssued (204)250-251 35,000,00(35,000.000
4 Capital Stock Subscribed (202, 2O5t 252 0
5 Stock Liability for Conversion (203. 206)252 0
6 Premium on Caoital Stock (207)252 0
7 Other Paid-ln Capital (208-21 1)253 0
8 lnstallments Received on Capital Stock (212)252 0
I {Less) Discount on Caoital Stock (213)254 0
10 (Less) Capital Stock Expense (214)254 11,696,211 11,924,026
1't Retained Eaminos (215, 215.1, 21 6)1't8-'t 19 -105.542.221 -106.447.403
12 Unaoorooriated Undistributed Subsidiarv Eaminos (21 6.1 )1 18-l 19 238,484,141 226,474,938
13 (Less) Reaquired Capital Stock (2'17)250-251 0
14 TOTAL Proprietary Capital (Enter Total ol lines 2 thru '13)766,986.301 760,840,719
15 LONG.TERM DEBT
16 Bonds (221)256-257 306,300,00(401 ,300,000
17 (Less) Reaquired Bonds (222)256-257 0
18 Advances lrom Associated Companies (223)256-257 0
19 Other Long-Term Debt (224)256-257 723,160,00(931,000,000
20 Unamortized Premium on Lono-Term Debt (225)0
21 (Less) Unamortized Discount on Long-Term Debt-Debit (226)112,511 2,546,888
22 TOTAL Lono-Term Debt (Enter Total ol lines 16 thru 21)1.029,347.48(1.329.753.'t 12
23 OTHER NONCURREITIT LIABILITIES
24 Oblioations Under CaDital Leases - Noncunent (227)0
25 Accumulated Provision for Property lnsurance (228.1)0
26 Accumulated Provision for lnjuries and Damages (228.2)726,19t 1,476,494
27 Accumulated Provision for Pensions and Benefits (228.3)15,974,65(18,'t84,215
28 Accumulated Miscellansous Ooeratino Provisions (228.4)0
29 Accumulated Provision lor Rate Refunds (229)0
30 TOTAL OTHER Noncunent Liabilities (Enter Total of lines 24 thru 29)16,700,85:19,660,709
31 CURRENT AND ACCRUED LTABILITTES
32 Notes Payable (231)0
33 Accounts Pavable (232)194,750,47t 52,930,348
34 Notes Pavable to Associated Comoanies (2331 0
35 Accounts Payable to Associated Companies (234)41,900,17r 20,s12,592
36 Customer Deposits (235)2,966,76{3,820,410
37 Taxes AccruEd (236)262-263 -14,177,O7't -20,229,945
38 lnterest Accrued (237)16,584,66(18,583,369
39 Dividends Declared (238)99,026
40 Matured Lono-Term Debt (239)0
41 Matured lnterest (240)0
42 Tax Collections Pavable (241)618,171 374,374
43 Miscellaneous Gurrent and Accrued Liabilities (242)32,705,93(515,408
44 Oblioations Under Capital Leases-Current (22[3)0
45 TOTAL Cunent & Accrued Liabilities (Enter Total of lines 32 thru rM)275,349,10t 76,605,582
FERC FORM NO.2 (ED. 12-89)Page 112
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Name of Respondent
Avista Corp.
This Report Is:
(1) tr An Original
(2) tr A Resubmission
Date of Report
(Mo, Da, Yr)
0413012002
Year ol Report
Dec.31, g
COMPARATIVE BALANCE SHEET (LlABlLlTlES AN D OTHER CREDlTSIcontinued)
Line
No.
Title of Account
(a)
Ref.
Page No.
(b)
Balance at
Beginning of Year
(c)
Balance at
End of Year
(d)
46 DEFERRED CREDITS
47 Customer Advances lor Construction (252)1.438,40;981 ,208
48 Accumulated Deferred lnvestrnent Tax Credits (255)266-267 768,19i 718,884
49 Deferred Gains lrom Disposition of Utility Plant (256)0
50 Other Delerred Credits (253)269 65,943,40(230,560,198
51 Other Reoulatorv Liabilities (254)278 87,615,84:11,931 ,064
52 Unamortized Gain on Reaquired Debt (257)1,728,475
53 Accumulated Deferred lncome Taxes (28'l-283)272-277 430,492,80(497,577.329
54 TOTAL Deferred Credits (Enter Total of lines 47 thru 53)586,258,65t 743,497,158
55 0
56 0
57 0
58 0
59 0
60 0
61 0
62 0
63 0
64 0
65 0
66 0
67 0
68 TOTAL Liab and Other Credits (Enter Total of lines '14,22,30,45,54)2,674,642.41(2,930,357.280
FERC FORM NO.2 (ED. 12-89)Page 113
Name ol Hesponoenr
Avista Corp.
This Reoort ls:(1) fllln Original
(21 1-1A Resubmission
uare or Hepon(Mo, Da, Yi)
o4l30l2o,o?
Year ot F{epon
Dec.31, 2001
STATEMENT OF INCOME FOB THE YEAR
'l . Report amounts for accounts 412 and 41 3, Revenue and Expenses from Utility Plant Leased to Others, in another Utility column (i,
k, m, o) in a similar manner to a utility department. Spread the amount(s) over Lines 02 thru 24 as appropriate. lnclude these amounts
in columns (c) and (d) totals.
2. Report amounts in account 414, Other Utility Operating income, in the same manner as accounts 4'12 and 413 above.
3. Report data for lines 7,9, and 10 for Natural Gas companies using accounts 404.1, 404.2, 404.3, 407.'l and 407.2.
4. Use pages 122-123 for important notes regarding the statement of income or any account thereof.
5. 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 a material relund to the utility with respect to power or gas
purchases. State ror each year affected 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 and gas purchases.
6. Give concise explanations conceming significant amounts of any refunds made or received during the year
Line
No.
Account
(a)
(Ref.)
Page No.
(b)
TOTAL
uurrent Year
(c)
Prevpus Year
(d)
1 UTIL]TY OPEBATING INCOME
2 Operating Revenues (400)300-301 1,230,847,19S 't,512,100,770
3 Operating Expenses
4 Operation Expenses (,101 )320-323 994,242,@4 1,388,465,332
5 Maintenance Expenses (402)320-323 26,266,45i 25,746,661
6 Depreciation Expense (403)336-337 58,204,87C 54,285,384
7 Amort. & Depl. of Utility Plant (/104-405)336-337 6,845,01S 10,339,617
8 Amort. of Utility Plant Acq. Adj. (/106)336-337 99,04€99,048
9 Amoft. Property Losses, Unrecov Plant and Regulatory Study Costs (,f07)-4,095 -22,863
10 Arnort. of Conversion Expenses (407)
11 Regulatory Debits (407.3)228.67e
12 (Less) Regulatory Credits (407.4)23,255,97e 17,747,983
13 Taxes other Than lncome Taxes (408.1)262-263 53,294,528 47,758,678
't4 lncome Taxes - Federal (409.1)262-263 -92,830,192 -42,s08,513
15 - Other (409.1)262-263 -5,747,504 -1,567,966
16 Provision lor Delerred lncome Taxes (410.1)2U,272-277 108,321,574 43,310,225
17 (Less) Provision lor Deferred lncome Taxes-Cr. (41 1 . 1 )2U,272-277 5,441,83S 4.572,425
18 lnvestment Tax Credit Adj. - Net (411.4)266 -49,308 -49,308
19 (Less) Gains lrom Disp. of Utility Plant (41 1.6)
20 Losses from Disp. of Utility Plant (41 1.7)
21 (Less) Gains lrom Disposition of Allowances (41 1.8)
22 Losses lrom Dispositbn ol Allowances (41 1.9)
23 TOTAL Utility Operating Expenses (Enter Total of lines 4 lhru 221 1,120,173,857 1,503,535,887
24 Net Util Oper lnc (Enter Tot line 2 less 23) Cany fwd to Pl l7,line 25 110,673,U2 8,564,883
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IFERC FORM NO.2 (ED.12-96)Page ti4
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Name or Hesponoenr
Avista Corp.
This RoDort ls:(1) [lAn orisinal
(21 f-'lA Resubmission
Date of Report
(Mo, Da, Yr)
o413012002
Year of Report
Dec.31, 2OO1
STATEMENT OF INCOME FOR THE YEAR (Continued)
resulting from settlement of any rate proceeding affecting revenues received or costs incurred for power or gas purchases, and a
summary of the adjustments made to balance sheet, income, and expense a@ounts.
7. ll any notes appearing in the repon to stockholders are applicable to this Statement of lncome, such notes may be included on
pages 122-123.
B. Enter on pages 122-123 a concise explanation of only those changes in accounting methods made during the year which had an
etfect on net income, including the basis of allocalions and apportionments from those used in the preceding year. Also give the
approximate dollar effect of such changes.
9. Explain in a footnote if the previous yea/s figures are different from that reported in prior reports.
10. lf the columns are insufficient for reporting additional utility departments, supply the appropriate account titles, lines 2lo 23, and
report the information in the blank space on pages.122-123 or in a footnote.
ELECTRIC UTILITY GAS UTILITY OTHER UILIry Line
No.
Current Year
(e)
Previous Year
(0
uurrenr Year
(s)
rrevrous Year
(h)
current Year
(D
Prevrous Yearo
922,204,500 1,287,254,639 308,642,699 224,846,131
747,476,4U 1,214,379,9s4 246,7ffi,170 174,085,378
22,619,436 22,091,373 3,U7,O21 3,655,288
44,592,733 41,395,721 13,612,137 12,889,663
6,036,769 9,472,754 808,250 866,863
99,048 99,048
-4,095 -22,863
1C
228,676 11
23,2s5,978 17,747,983 1
34,313,701 36,009,470 18,980,824 11,749,208 13
-92,594,588 -36,694,557 -235,609 -5,813,95€14
-3,984,607 -647,869 1,762,897 -920,097 15
101,367,176 27,495,895 6,954,398 1s,814,33C 't€
5,137,185 4,244,958 304,654 327,467 't7
-49,308 -49,308 't8
19
2C
21
22
8rit1,528,849 1,291,585,985 288,4r5,008 211,949,902 z:
90,675,651 -4,331,346 19,997,69'l 12,896,229 .2
FEHC FORM NO.2 (ED. 12-96)Page tts
Name of RespondEnt
Avista Corp.
This Reoort ls:(1) 5]1rn orisinal(2) 5A Resubmission
Date ol Reoort(Mo, Da, Yi)
0413012002
Year oI Hepon
Dec.31, 2001
STATEMENT OF INCOME FOR THEYEAR (Continued)
Line
No.
OTHER UTILITY OTHER UTILITY OTHER UTILIry
uurrent Year
(k)
Prevous Year
(t)
uurrent Year
(m)
t revous Year
(n)
uurrenr Year
(o)
rrevtous YeaI
(p)
2
4
'tc
11
1
1
1
1
1€
17
18
1g
2C
2'l
2i
2i
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IFERC FORM NO.2 (8D.12-96)Page 116
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Name or Hesponoenl
Avista Corp.
This Reoort ls:(1) 5.len Originat(2) 1--1A Resubmission
Date ot Reoorl(Mo, Da, Yi)
o413012002
Year of Report
Dec.31, 2001
STATEMENT OF INCOME FOR THE YEAR (Continued)
Line
No.
Account
(a)
(Rel.)
Page No.
(b)
TOTAL
uurrenl Year
(c)
Previous Year
(d)
2!Net Utility Operating lncome (Carried fontrrard from page 114)110,673,34i 8,564,883
2t Other lncome and Deductions
21 Odrer lncome
2t Nonutilty Operating lncome
2S Revenues From Merchandising, Jobbing and Contract Work (415)138,51i 251,641
3((Less) Costs and Exp. ol Merchandising, Job. & Contract Work (416)127,752 169,79:
31 Revenues From Nonutility Operations (417)378,85:285,96(
5z (Less) Expenses of Nonutility Operations (417.1)2,131 ,88i 2.209.122
Nonoperating Rental lncome (418)-23,901 -28.42-t
3,(Equity in Earnings ot Subsidiary Companies (418.1)1't9 11,090,21t 131 ,479,63i
3T lnterest and Dividend lncome (419)34,250,252 8,680,321
3€Allowance for O,ther Funds Used During Construction (419.1)1,073,22!604,30S
31 Miscellaneous Nonoperating lncome (421 )-173,64S 1,457 ,741
3t Gain on Disposition ol Property (421.1)u,24i 18,862,67i
ac TOTAL Other lncome (Enter Total of lines 29 thru 38)22,377,67(159,214,93(
4C Other lncome Deductions
4'l Loss on Disposition ol Property (421.2)23,45t 42,70i
42 Miscellaneous Amortization (425)340 1,323,907 I ,325,81€
43 Miscellaneous lncome Deductions (426.1 -426.5)340 2,983,15S 5,651,11
44 TOTAL Other lncome Deductions (Total ol lines 41 thru 43)4,330,524 7,019,63:
45 Taxes Applic. to Other lncome and Deductions
4e Taxes Other Than lncome Taxes (408.2)262-263 7,45t 27,20C
47 lncome Taxes-Federal (409.2)262-263 12,085,77(18,300,94C
4e lncome Taxes-Other (409.2)262-263 -494,84i 798,11
4S Provision for Delerred lnc. Taxes (410.2)234,272-277 4,292,801 2,343,11
5C (Less) Provision for Defered lncome Taxes-Cr. (41 1.2)2U,272-277 -40,69r 18,044,012
51 lnvestment Tax Credit Adj.-Net (41 1.5)
52 (Less) lnvestnent Tax Credits (420)
53 TOTAL Taxes on Other lncome and Deduct. (Iotal of 46 thru 52)15,931 ,88!3,425,350
54 Net Other lncome and Deductions (Enter Total lines 39, 44, 53)2,115,27(148,769,95:
55 lnterest Charges
5€lnterest on Long-Term Debt (427)96,517,79i 61,296,18C
57 Amort. of Debt Disc. and Expense (428)3,481,48t,1,526,972
58 Amortization of Loss on Reaquired Debt (428.1)2,167,'tO!1 ,882,51i
EC (Less) Amort. ol Premium on Debt-Credit (429)
60 (Less) Amortization of Gain on Reaquired Debt-Credit (429.1)9,90!
61 lnterest on Debt to Assoc. Companies (43O)340 196,041
62 Other lnterest Expense (431)340 672,19i 2,103,692
63 (Less) Allowance for Borrowed Funds Used During Construction'Cr. (432)2,195,821 1,349,503
64 Net lnterest Charges (Enter Total ol lines 56 thru 63)100,632,84(65,655,89r
6S lncome Before Extraordinary ltems (total of lines 25, 54 and 64)12,155,76(91,678,94i
6€Extraordinary ltems
6i Extraordinary lncome (434)
6t (Less) Extraordinary Deductions (435)
6e Net Extraordinary ltems (Enter Total of line 67 less line 68)
7C lncome Taxes-Federal and Other (,l()9.3)262-263
71 Extraordinary ltems After Taxes (Enter Total of line 69 less line 70)
72 Net lncome (Enter Total ol lines 65 and 71)12,155,76t 91,678,94'
FERC FORM NO.2 (ED.12-96)Page 117
Name or Hesponoem
Avista Corp.
l nrs HeDon ts:(1) fiAn Original(2) -A Resubmission
Date of Reoort(Mo, Da, Yi)
o413012002
Year oI Hepon
Dec.31, 2oo1
STATEMENT OF RETAINED EARNINGS FOR THE YEAR
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 eamings account in which recorded (Accounts 433, 436
- 439 inclusive). Show the contra primary account affected in column (b)
3. State the purpose and amount of each reservation or appropriation of retained earnings.
4. List first account 4i19, Adjustments to Retained Eamings, reflecting adjustments to the opening balance ol retained earnings. Follow
by credit, then debit items in that order.
5. Show dividends for each class and series of capital stock.
6. Show separately the State and Federal income tax effect of items shown in account 439, Adjustments to Retained Eamings.
7. Explain in a footnote the basis for determining the amount reserved or appropriated. lf such reservation or appropriation is to be
recurrent, state the number and annual amounts to be reserved or appropriated as well as the totals eventually to be accumulated.
8. lf any notes appearing in the report to stockholders are applicable to this statement, include them on pages 122-123.
Lrne
No.Item
(a)
uonrra Ffimary
\ccount Atfected(b)
ATNOUNI
(c)
UNAPPROPRIATED RETAINED EARN INGS (Account 21 6)
1 Balance-Beginning of Year
-
-1o7,o9o,3so
Ghanges
Adjustments to Retained Earnings (Account 439)
141 ,026
TOTAL Credits to Retained Eamings (Acc{.439)141,026
I Debits -13,629
11
1
1
1
1 TOTAL Debits to Retained Eamings (Acct. 439)-13,629
1 Balance Transferred from lncome (Account 433 less Account 418.1)23,245,984
1 Appropriations of Retained Eamings (Acct. 436)
1
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21
4 TOTAL Appropriations of Retained Earnings (Acct. 436)
23 Dividends Declared-Pref erred Stock (Account 437)
24 Series K -2,432,500
2a
2e
27
28
29 TOTAL Dividends Declared-Preferred Stock (Acct. 437)-2.432.500
3C Dividends Declared-Common Stock (Account rl38)
31 -22,765,047
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35
3€TOTAL Dividends Declared-Common Stock (Acct. 438)-22.765.047
37 Transfers lrom Acct 216.1 , Unapprop. Undistrib. Subsidiary Earnings 918,992
3€Balance - End of Year (Iotal 1,9,15,16,22,29,36,37)-107,995,524
APPROPRIATED RETAINED EARNINGS (Account 215)
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tFERC FORM NO.2 (ED.12-96)Page 118
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Name of Respondent
Avista Corp.
of Reoort
Da, Yi)
1. Report all changes in appropriated retained earnings, unappropriated retained eamings, 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 of each reservation or appropriation of retained earnings.
4. List first account 439, Adlustments to Retained Earnings, reflecting adjustments to the opening balance of retained earnings. Follow
by credit, ihen debii items in that order.
5. Show dividends for each class and series of capital stock.
6. Show separately the State and Federal income tax effect of items shown in account 439, Adjustments to Retained Eamings.
7. Explain in a footnote the basis for determining the amount reserved or appropriated. lf such reservation or appropriation is to be
recurrent, state the number and annual amounts to be reserved or appropriated as well as the totals eventually to be accumulated.
8. lf any notes appearing in the report to stockholders are applicable to this stalement, include them on pages 't22-123.
TOTAL Appropriated Retained Eamings (Account 215)
APPROP. RETAINED EARNINGS - AMORT. Reserve, Federal (Account 215.1)
TOTAL Approp. Retained Eamings-Amort. Reserve, Federal (Acct. 215.1)
TOTAL Approp. Retained Earnings (Acct.215, 215.1) (Iotal 45,46)1,548,121
TOTAL Retained Eamings (Account 215, 215.1, 216) Cfotal 38, 47)
UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account 216.1)
of Year (Debit or Credit)
Equity in Earnings for Year (Credit) (Account 418.1)
Balance-End of Year (Total lines 49 thru 52)
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Tffi Page 119
Name of Respondent
Avista Corp.
This Reoort ls:(1) []An Originat(2) nA Resubmission
Date of Report(Mo, Da, Yr)
0413012002
Year or Hepon
Dec.3.t , 2OO1
STATEMENT OF CASHFTOWS
1. lf the notes to the cash flow statement in the rgspondents annual slockholders report are applicable to this statement, such notes should be included
in page 122-123. lnformation about non-cash investing and financing activities should be provided on Page 122-123. Provide also on pages 122-123 a
reconciliation between'Cash and Cash Equivalents at End of Year" with related amounts on the balance sheet.
2. Under'Other" specify significant amounts and group others.
3. Operating Activities - Other: lnclude gains and losses pertaining to operating activities only. Gains and losses pertaining to investing and linancing
activities should be reported in those activities. Show on Page 122-123 the amount of interest paid (net of amounts capitalized) and income taxes paid.
LII IE
No.
ue\rurrpu(Jil loee Ilr5r.ruur.r()il r\u. c ror trxpranauon oI uooes]
(a)
Amounts
(b)
1 Net Cash Flow lrom Operating Activities:
2 Net lncome 12,155,766
3 Noncash Charges (Credits) to lncome:
4 Depreclation and Depletion 58,204,870
5 Amortization -14,991,903
6
7
8 Deferred lncome Taxes (Net)107,213,233
9 lnvestment Tax Credit Adiustment (Net)-49,308
10 Net (lncrease) Decrease in Receivables 150,836,270
11 Net (lncrease) Decrease in lnventory 1,595,s53
12 Net (lncrease) Decrease in Allowances lnventory
13 Net lncrease (Decrease) in Payables and Accrued Expenses -175,392,380
14 Net (lncrease) Decrease in Other Regulatory Assets -150,5't 1,859
15 Net lncrease (Decrease) in Other Regulatory Liabilities -52,867,696
16 (Less) Allowance for Other Funds Used During Construction -2,983,200
17 (Less) Undistributed Earnings from Subsidiary Companies 1 1 ,090,218
18 Other:
'19 Non-Monetary Power Transaction -19,601,924
20 Power and Gas Delerrals -187,663,747
21 Other Non-Cu rrent Assets/Liabilities 173,844.861
22 Net Cash Provided by (Used in) Operating Activities (Total 2 thru 21)-108,526,388
23
24 Cash Flows from lnvestment Activities:
25 Conskuction and Acquisilion of Plant (including land):
26 Gross Additions to Utility Plant (less nuclear fuel)-122,888,490
27 Gross Additions to Nuclear Fuel
28 Gross Additions to Common Utility Planl
29 Gross Additions to Nonutility Plant -948,410
30 (Less) Allowance lor Other Funds Used During Construction -2,983,200
31 Other:
32 Other Property and lnvestments 8,265,696
33
34 Cash Outflows for Plant (Total of lines 26 thru 33)-1 12,588,004
35
36 Acquisition of Other Noncurrent Assets (d)
37 Proceeds lrom Disposal of Noncurrent Assets (d)
38
39 lnvestments in and Advances to Assoc. and Subsidiary Companies -68,523,582
40 Contributions and Advances lrom Assoc. and Subsidiary Companies
41 Disposition of lnvestrnents in (and Advances to)
42 Associated and Subsidiary Companies
43
44 Purchase of lnvestment Securities (a)
45 Proceeds Irom Sales of lnvestment Securities (a)
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IFERC FORM NO.2 (ED.12-96)Page 120
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Name of Respondenl
Avista Corp.
This Reoort ls:(1) E]Rn Originat(2) nA Besubmission
uale ot Heoon(Mo, Da, Yi)
0413012002
Year of Report
Dec.31 , 2001
STATEMENT OF GASH FLOWS
4. lnvesting Activities include at Other (line 31) net cash outllow to acquire other companies. Provide a reconciliation of assets acquired with liabilities
assumed on pages 122-123. Do not include on this statement the dollar amount of Leases capitalized per US of A General lnstruction 20; instead
provide a reconciliation of the dollar amount ot Leases capitalized with the plant cost on pages 122-123.
5. Codes used:
(a) Net proceeds or payments. (c) lnclude commercial paper.
(b) Bonds, debentures and other long-term debt. (d) ldentify separately such items as investments, fixed assets, intangibles, etc.
6. Enter on pages 122-123 clarifications and explanations.
LIIII'
No.
Description (See lnstruction No. 5lor Exflanatron ol Cocles)
(a)
Amounls
(b)
46 Loans Made or Purchased
47 Collections on Loans
48
49 Net (lncrease) Decrease in Receivables
50 Net (lncrease ) Decrease in lnventory
51 Net (lncrease) Decrease in Allowances Held lor Speculation
52 Net lncrease (Decrease) in Payables and Accrued Expenses
53 Other
54
55
56 Net Cash Provided by (Used in) lnvesting Activities
57 Total of lines 34 thru 55)-181,111,586
58
59 Cash Flows from Financing Activities:
60 Proceeds trom lssuance of:
61 Long-Term Debt (b)372.565.623
62 Preferred Stock
63 Common Stock 8.267,706
64 Other:
65
66 Net lncrease in Short-Term Debt (c)
67 Other:
68
69
70 Cash Provided by Outside Sources (Total 61 thru 69)380,833,329
71
72 Payments for Retirement of:
73 Long-term Debt (b)
74 Prefened Stock
75 Common Stock
76 Other:
77
78 Net Decrease in Short-Term Debt (c)-72,160,000
79
80 Dividends on Preferred Stock -2,432,500
81 Dividends on Common Stock -22.677,281
82 Net Cash Provided by (Used in) Financing Activities
83 Ctotal ol lines 70 thru 81)283,563,548
84
85 Net lncrease (Decrease) in Cash and Cash Equivalents
86 (Total ol lines 22,57 and 83)-6.O74.426
87
88 Cash and Cash Equivalents at Beginning of Year 16,526,81 1
89
90 Cash and Cash Equivalents at End of Year 10,452,385
FERC FORM NO.2 (ED.12-96)Page 121
r\ame oI Hesponoenl
Avista Corp.
lnrs Hepon rs:(1) El An Original
(2) [ A Resubmission
uare oI Hepon
0413012002
Year oI Hepon
Dec.3'f , 2001
NOTES TO FINANCIAL STATEMENTS
1. Use the space below for important notes regarding the Balance Sheet, Statement of lncome lor the year, Statement of Fletained
Earnings lor the year, and $atement of Cash Flows, or any account thereof. Classify the notes according to each basic statement,
providing a subheading for each statement except where a note is applicable to more than one statement.
2. Furnish particulars (details) as to any significant contingent assets or liabilities existing at end of year, including a brief explanation of
any action initiated by the ldemal Revenue Service involving possible assessment of additional income taxes of material amount, or of
a claim for refund of income taxes of a material amount initiated by the utility. Give also a brief explanation of any dividends in arrears
on cumulative preferred stodr.
3. For Account 116, Utility Plant Adjustments, explain the origin of such amount, debits and credits during the year, and plan of
disposition contemplated, giving references to Cormmission orders or other authorizations respecting classification of amounls as plant
adjustments and requirements as to disposition thereof.
4. Where Accounts 189, Unamortized Loss on Reacquired Debt, and257, Unamortized Gain on Reacquired Debt, are not used, give
an explanation, providing the rate treatment given these items. See General lnstruction 17 of the Uniform System of Accounts.
5. Give a concise explanation of any retained earnings restrictions and state the amount of retained earnings affected by such
restrictions.
6. lf the notes to financial statements relating to the respondent company appearing in the annual report to the stockholders are
applicable and furnish the data required by instructions above and on pages 1 14-121, such notes may be included herein.
P AGE'122 INTENTIONALLY LEFT BLANK
SEE PAGE 123 FOR REOUIRED INFORMATION.
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IFERC FORM NO.2 (ED. 12-96)Page 122
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Name of Respondent
Avista Coro.
This Report is:
(1) X An Originalel A Resubmission
Date of R_eport
(Mo, Da, Yr)
0413012002
Year of Report
Dec 31.2001
NOTES TO FINANCIAL STATEMENTS (Continued)
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NOTE 1. SI.'MMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
Avista Corporation (Avista Corp. or the Company) is an energy company involved in the generation, transmission and distribution of
energy as well as other energy-related businesses. The utility portion of the Company, doing business as Avista Utilities, an operating
division of Avista Corp. and not a separate entity, provides electric and natural gas service to customers in four western states and is
subjecttostateandfederal regulation. AvistaCapital,awhollyownedsubsidiaryofAvistaCorp.,istheparentcompanyofall ofthe
subsidiary companies engaged in the other non-regulated lines ofbusiness.
The Company's operations are exposed to risks, including legislative and governmental regulations, the price and supply of purchased
power, fuel and natural gas, recovery of purchased power and purchased natural gas costs, weather conditions, availability of
generation facilities, competition, technology and availability of funding. In addition, the energy business exposes the Company to
the financial, liquidity, credit and commodity price risks associated with wholesale purchases and sales.
Basis of Reporting
The consolidated financial statements include the assets, liabilities, revenues and expenses of the Company and its subsidiaries. The
accompanying financial statements include the Company's proportionate share of utility plant and related operations resulting from its
interests in jointly owned plants (See Note 8).
Use of Estimales
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect amounts reported in the consolidated financial
statements. Changes in these estimates and assumptions are considered reasonably possible and may have a material impact on the
consolidated 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 Federal Energy Regulatory Commission (FERC) and adopted by the appropriate state regulatory commissions.
Regulation
The Company is subject to state regulation in Washington, Idaho, Montana, Oregon and California. The Company is subject to
federal regulation by the FERC.
Business Segments
Financial information for each of the Company's lines of business is reported in the "Schedule of Information by Business Segments."
Such information is an integral part of these consolidated financial statements. The business segment presentation reflects the basis
currently used by the Company's management to analyze performance and determine the allocation of resources. Avista Utilities'
business is managed based on the total regulated utility operation. The Energy Trading and Marketing line of business operations
primarily includes non-regulated electricity and natural gas marketing and trading activities including derivative commodity
instruments such as futures, options, swaps and other contractual arrangements. The Information and Technology line of business
operations includes utility internet billing services and fuel cell technology. The Other line of business encompasses other
investments and non-energy operations of various subsidiaries as well as the operations of Avista Capital on a parent company only
basis. The Company is in the process of divesting Avista Communications, its telecommunications business, which is reported as a
discontinued operation.
Operating Revenues
Operating revenues are recorded on the basis of service rendered, which includes estimated unbilled revenue. Avista Energy follows
C FORM NO.2 1 't23
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Besubmission
Date of Report
(Mo, Da, Yr)
0413012002
Year of Report
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
the mark-to-market method of accounting for energy contracts entered into for trading and price risk management purposes. Avista
Energy recognizes revenue based on the change in the market value of outstanding derivative commodity sales contracts, net of future
servicing costs and reserves, in addition to revenue related to physical and financial contracts that have settled.
I nte rs e gm e nt Elimhatio n s
Intersegment eliminations represent the transactions between Avista Utilities and Avista Energy for energy commodities and services
Research and Development Expenses
Company-sponsored research and development expenses related to present and future products are expensed as incurred. The
majority of the Company's research and development expenses are related to the Information and Technology line of business.
Research and development expenses totaled $8.4 million, $8.1 million and $3.3 million in 2001, 2000 and 1999, respectively.
Advertising Costs
The Company expenses advertising costs as incurred. Advertising expenses totaled $1.8 million, $1.2 million and $0.6 million in
2001,2000 and 1999, respectively.
Taxes other than income taxes
Taxes other than income taxes include state excise taxes, city occupational and franchise taxes, real and personal property taxes and
certain other taxes not based on net income. These taxes are generally based on revenues or the value of property. Utility related
taxes collected from customers are recorded as both revenue and expense and totaled $26.3 million, $23.5 million and $21.3 million
in 2001,2000 and 1999, respectively.
Other Income-Net
Other income-net consisted of the following items for the years ended December 3l (dollars in thousands):
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Interest income
Net gain on subsidiary transactions
Gain (loss) on property dispositions
Minority interest
Other - net
Total
$32,044
2,997
(8,338)
2t7
6.23e)
$20-681
$ r r,824
770
20,278
694
0.70s)
$25-86r
$3,61s
57,531
4,07 t
466
8.229
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Income Taxes
The Company and its eligible subsidiaries file consolidated federal income tax returns. Subsidiaries are charged or credited with the a
tax effects of their operations on a stand-alone basis. The Company's federal income tax returns were examined with all issues !resolved, and all payments made, through the 1998 return.
The Company accounts for income taxes using the liability method. Under the liability method, a deferred tax asset or liability is
determined based on the enacted tax rates that will be in effect when the differences between the financial statement carrying amounts
and tax basis of existing assets and liabilities are expected to be reported in the Company's consolidated income tax returns. The
deferred tax expense for the period is equal to the net change in the deferred tax asset and liability accounts from the beginning to the
end of the period. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the
enactment date.
Sto ck- Based Compensatia n
The Company follows the disclosure only provisions of Statement of Financial Accounting Standards (SFAS) No. 123, ,,Accounting
for Stock-Based Compensation." Accordingly, employee stock options are accounted for under Accounting Principle Board Opinion
FORM NO.2 . 12-88) Paqe 123.1
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Name of Respondent
Avista Coro.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
o413012002
Year of Fleport
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS {Continued)
(APB) No. 25, ,,Accounting for Stock Issued to Employees." Stock options are granted at exercise prices not less than the fair value
of common stock on the date of grant. Under APB No. 25, no compensation expense is recognized pursuant to the Company's stock
option plans.
Comprehensive Income
The Company's comprehensive income is comprised of net income, foreign currency translation adjustments, unfunded accumulated
benefit obligation and unrealized gains and losses on investments available-for-sale.
F oreign Currency Translation Adjustment
The assets and liabilities of Avista Energy Canada, Ltd. are denominated in Canadian dollars and translated to United States dollars at
exchange rates in effect on the balance sheet date. Revenues and expenses are translated using an average exchange rate. Translation
adjustments resulting from this process are reflected as a component of other comprehensive income in the Consolidated Statements
of Comprehensive Income.
Earnings Per Common Share
Basic eamings per common share is computed by dividing income available for common stock by the weighted average number of
common shares outstanding for the period. Diluted earnings per common share is calculated by dividing income available for
common stock by diluted weighted average common shares outstanding during the period, including common stock equivalent shares
outstanding using the treasury stock method, unless such shares are anti-dilutive. Common stock equivalent shares include shares
issuable upon exercise of stock options and convertible stock. See Note 2l for earnings per common share calculations.
Cash and Cash Equivalents
For the purposes of the Consolidated Statements of Cash Flows, the Company considers all temporary investments with a purchased
maturity of three months or less to be cash equivalents.
Temporary Investments
Temporary investments consist of marketable equity securities classified as "available for sale." The unrealized gain on temporary
investments totaled $1.4 million as of December 31,2001 compared to an unrealized loss of $0.7 million as of December 31,2000,
respectively, net of taxes, and are reflected as a component of accumulated other comprehensive income on the Consolidated
Statements of Capitalization.
Allowance for Doabtful Accoants
The Company maintains an allowance for doubtful accounts to sufficiently 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. The following table documents the activity in the allowance for doubtful accounts during the years ended
December 3l (dollars in thousands):
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Allowance as of the beginning of the year
Additions expensed during the year
Net deductions
Allowance as of the end of the year
Inventory
$14,404
39,947
(4.140)
$502U
$ 4,267
l1,835
(l.698)
$r4JO4
$7,547
2,991
6.27t)
$a267
I Inventory consists primarily of materials and supplies, fuel stock and natural gas stored. Inventory is recorded at the lower of cost or
I market, primarily using the average cost method.
ERC FORM NO.2 't23.2
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
o413012002
Year of Report
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
Utility Plant in Service
The cost of additions to utility plant in service, including an allowance for funds used during construction and replacements of units of
property and improvements, is capitalized. Costs of depreciable units of property retired plus costs of removal less salvage are
charged to accumulated depreciation.
Allowancefor Funds Used During Constructian
The Allowance for Funds Used During Construction (AFt DC) represents the cost of both the debt and equity funds used to finance
utility plant additions during the construction period. In accordance with the uniform system of accounts prescribed by regulatory
authorities, AFUDC is capitalized as a part of the cost of utility plant and is credited currently as a non-cash item to the Consolidated
Statements of Income in the line item capitalized interest. The Company generally is permitted, under established regulatory rate
practices, to recover the capitalized AFUDC, and a fair 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.
The effective AFUDC rate was 9.03 percent in 2001 and 10.67 percent in 2000 and 1999. The Company's AFUDC rates do not
exceed the maximum allowable rates as determined in accordance with the requirements of regulatory authorities.
Depreciation
For utility operations, depreciation expense is estimated by a method of depreciation accounting utilizing unit rates for hydroelectric
plants and composite rates for other utility plant. Such rates are designed to provide for retirements of properties at the expiration of
their service lives. The rates for hydroelectric plants include annuity and interest components, in which the interest component is 9
percent. For utility operations, the ratio of depreciation provisions to average depreciable property was 2.84 percent in2OOl,2.72
percent in 2000 and2.69 percent in 1999.
The average service lives and remaining average service lives, respectively, for the following broad categories of utility property are:
electric thermal production - 35 and 15 years; hydroelectric production - 100 and 77 years; electric transmission - 60 and 26years;
electric distribution - 40 and 29 years; and natural gas distribution property - 44 and 28 years.
Goodwill
Goodwill arising from acquisitions represents the excess of the purchase price over the estimated fair value of net assets acquired.
The Company periodically evaluates goodwill for impairment. Goodwill was amortized using the straight-line method over periods
not exceeding twenty years. Goodwill is included in non-utility properties and investments-net in the Consolidated Balance Sheets
and totaled $13.7 million and$22.7 million as of December 31,2001 and 2000, respectively. The levelof goodwill as of December
31, 2001 and 2000 was supported by the value attributed to the operations acquired. See Note 2 for changes in accounting for
goodwill effective January 1,2W2.
Regulatory Defened Charges and Credils
The Company prepares its consolidated financial statements in accordance with the provisions of SFAS No.7l, "Accounting for the
Effects of Certain Types of Regulation." The Company prepares its financial statements in accordance with SFAS No.7l due to the
fact that (i) the Company's rates for regulated services are established by or subject to approval by an independent third-party
regulator, (ii) the regulated rates are designed to recover the Company's cost of providing the regulated services and (iii) in view of
demand for the regulated services and the level of competition, it is reasonable to assume that rates set at levels that will recover the
Company's costs can be charged to and collected from customers. SFAS No. 71 requires the Company to reflect the impact of
regulatory decisions in its financial statements. SFAS No. 71 requires that certain costs and/or obligations (such as incurred power
and natural gas costs not currently recovered through rates, but expected to be recovered in the future) be reflected as a deferred
charge on the balance sheet. These costs and/or obligations are not reflected in the statement of income until the period that matching
revenues are recognized. If at some point in the future the Company determines that it no longer meets the criteria for continued
application of SFAS No. 71 to all or a portion of the Company's regulated operations, the Company could be required to write off its
regulatory assets. The Company could also be precluded from the future deferral of costs not recovered through rates at the time such
costs were incurred, even if such costs were expected to be recovered in the future.
C FORM NO.2 1 123.3
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The Company's primary regulatory assets include power and natural gas deferrals, investment in exchange power, regulatory assets
for deferred income taxes, unamortized debt expense, regulatory asset offsetting energy commodity derivative liabilities, demand side
management programs, conservation programs and the provision for postretirement benefits. Those items without a specific line on
the Consolidated Balance Sheets are included in other regulatory assets. Other regulatory assets consisted of the following as of
December 3l (dollars in thousands):
)oo1 ?ooo
Regulatory asset offsetting energy commodity derivative liabilities $158,747 $
Regulatory asset for postretirement benefit obligation 5,200 5,673
Demand side management and conservation programs 28.813 18.262
Total $192J60 $ZL915
Deferred credits include regulatory liabilities created when the Centralia Power Plant was sold and the gain on the general office
building sale/leaseback which is being amortized over the life of the lease, and are included on the Consolidated Balance Sheets as
Non-Current Liabilities and Deferred Credis - Other deferred credits.
Nalural Gas Benchmark Meclwnism
Avista Utilities received regulatory approval of its Natural Gas Benchmark Mechanism in 1999 from the Idaho Public Utilities
Commission (IPUC), Washington Utilities and Transportation Commission (WUTC) and Oregon Public Utilities Commission
(OPUC). The mechanism eliminated natural gas procurement operations within Avista Utilities and consolidated gas procurement
operations under Avista Energy, the Company's non-regulated affiliate. The ownership of the natural gas assets remains with Avista
Utilities; however, the assets are managed by Avista Energy through an Agency Agreement.
Effective January l, 2001, the WUTC and IPUC approved Avista Utilities' modifications of the Natural Gas Benchmark Mechanism,
incorporating the use of financial products (fixed-price transactions or hedging). Due to the unprecedented increase in, and volatility
oi natural gas commodity costs, it was determined that such additional flexibility was needed in the Natural Gas Benchmark
Mechanism to properly manage costs. The Natural Gas Benchmark Mechanism provides certain guaranteed benefits to retail
customers and provides the Company with the opportunity to improve earnings, i.e., a performance-based mechanism. In accordance
with SFAS No. 71, profits recognized by Avista Energy on natural gas sales to Avista Utilities, including unrealized gains on natural
gas contracts, are not eliminated in the consolidated financial statements. This is due to the fact that costs incurred by Avista Utilities
for natural gas purchases to serve retail customers and for fuel for elecfiic generation are recovered through future retail rates.
Avista Utilities provided notice of its intent to continue the Natural Gas Benchmark Mechanism and related Agency Agreement with
Avista Energy to the applicable state regulatory agencies in 2001. In early 2002, the WUTC approved the continuation of the Natural
Gas Benchmark Mechanism and related Agency Agreement through March 31, 2003 and the IPUC approved the continuation through
March 31,2005.
Power Cost Defenals
Avista Utilities has deferred certain power costs as approved by the WUTC. The specific power costs deferred include the changes in
power costs to Avista Utilities from the costs included in base retail rates, resulting from changes in short-term wholesale market
prices, changes in the level of hydroelectric generation and changes in the level of thermal generation (including changes in tuel
prices). The power costs deferred relate solely to the operation of Avista Utilities' system resources to serve its system retail and
wholesale load obligations. During 2001, Avista Utilities deferred $145.4 million in power costs (net of the $21.8 million written off
pursuant to the WUTC order); total deferred power costs were $140.2 million for Washington customers as of December 31, 2001.
During 2000, Avista Utilities deferred a total of $33.9 million in power costs related to Washington customers.
In September 2001, the WUTC ordered a 25 percent temporary electric rate surcharge for the l5-month period from October l, 2001
to December 3l, 2OOZ to allow Avista Utilities to recover a portion of Washington deferred power costs. The order by the WUTC also
ERC FORM NO.2 (ED. 1 123.4
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0413012002
Year of Report
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
Name of Respondent
Avista Com.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
o413012002
Year of Report
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
provided for the termination of the accounting mechanism for the deferral of power costs effective January 1,2002. In November
2001, Avista Utilities filed a request with the WUTC for an expedited procedural schedule to address the prudence and recoverability
of deferred power costs incurred prior to September 30, 2001.
In the December 2001 general electric rate case filing, Avista Utilities requested, among other things, the issuance of an order
implementing a temporary deferred accounting mechanism to be in effect during the period from January L,2OO2 through the
conclusion of the general rate case. The request for a temporary deferred accounting mechanism was approved by the WUTC in
December 2001. As requested by Avista Utilities, the deferred power cost accounting mechanism was modified to reflect the deferral
of 90 percent of the difference between actual power supply costs and the amount of power supply costs allowed to be recovered in
current retail rates. Avista Utilities also requested the establishment of a permanent power cost adjustment (PCA) mechanism to
increase or decrease future electric rates based on actual power supply costs, similar to the existing Idaho PCA mechanism.
On March 4,2C().2 the WUTC issued an order approving the prudence and recoverability of 90 percent of deferred power supply costs
incurred during the period from July 1, 2000 through December 31, 2001. This resulted in the Company writing off $21.8 million of
power supply costs previously deferred. Additionally, the order provided that one-fifth of the existing 25 percent surcharge will be
applied to offset the Company's general operating costs and the remainder will continue to be a recovery of deferred power costs. The
WUTC order also approved a 6.2 percent increase in base retail rates.
Avista Utilities has a PCA mechanism in Idaho that allows it to modify electric rates to recover or rebate a portion of the difference
between actual and allowed net power supply costs. The current PCA mechanism allows for the deferral of 90 percent of the
difference between actual net power supply expenses and the authorized level ofnet power supply expense approved in the last Idaho
general rate case. In October 2001, the IPUC issued an order approving a 14.7 percent PCA surcharge for Idaho electric customers
and granted an extension of a 4.7 percent PCA surcharge implemented earlier in 2001 that was to expire January 31,2002. Both PCA
surcharges will remain in effect until October 2N2. The IPUC directed Avista Utilities to file a status report 60 days before the PCA
surcharge expires. If review of the status report and the actual balance of deferred power costs support continuation of the PCA
surcharge, the IPUC has indicated that it anticipates the PCA surcharge will be extended for an additional period. Total deferred
power costs for Idaho customers were $73.1 million as of December 31, 2001.
Natural Gas Cost Deferrals
Under established regulatory practices in each respective state, Avista Utilities is allowed to adjust its natural gas rates periodically
with appropriate regulatory approval to reflect increases or decreases in the cost of natural gas purchased. Differences between actual
natural gas costs and the natural gas costs allowed in rates are deferred and charged or credited to expense when regulators approve
inclusion of the cost changes in rates. In Oregon, regulatory provisions include a sharing of benefits and risks associated with changes
in natural gas prices, as well as a sharing ofbenefits ifcertain threshold earnings levels are exceeded. Total deferred natural gas costs
were $52.7 million as of December 31, 2001. Based on current natural gas rates in place and current natural gas prices, Avista
Utilities expects that the deferred natural gas cost balance will be fully recovered by December 2002.
Deferred Revenue
In December 1998, the Company received cash proceeds of $143.4 million from the monetization of a contract in which the Company
assigned and transferred certain rights under a long-term power sales contract to a funding trust. The proceeds were recorded as
deferred revenue and were being amortized into revenues over the l6-year period of the long-term sales contract. Pursuant to the
WUTC order in September 2001, the Company was directed to offset $53.8 million of the Washington share of the deferred revenue
against deferred power costs. The IPUC order in October 2001 directed the Company to amortize the Idaho share of the deferred
revenue against deferred power costs over the next 15 months. The unamortized balance as of December 3L,2001 was $27.7 million.
Reclassifications
Certain prior period amounts were reclassified to conform to current statement format. These reclassifications were made f., Icomparative purposes and have not affected previously reported total net income or common equity.
RC FORM NO.2 1 123.5
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Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Y0
o413012002
Year of Report
Dec 31,2001
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 2. NEW ACCOUNTING STANDARDS
In June 1998, the Financial Accounting Standards Board (FASB) issued SFAS No. 133, ,,Accounting for Derivative Instruments and
Hedging Activities." In June 2000, the FASB issued SFAS No. 138, which amended certain provisions of SFAS No. 133 to clarify
specific areas presenting difficulties in implementation. SFAS No. 133, as amended by SFAS No. 138, establishes accounting and
reporting standards for derivative instruments, including certain derivative instruments imbedded in other contracts, and for hedging
activities. It requires the recording of all derivatives as either assets or liabilities in the balance sheet measured at estimated fair value
and the recognition of the unrealized gains and losses. In certain defined conditions, a derivative may be specifically designated as a
hedge for a particular exposure. The accounting for derivatives depends on the intended use of the derivatives and the resulting
designation. The Company adopted SFAS No. 133 and the corresponding amendments under SFAS No. 138, on January l, 2001.
Avista Utilities buys and sells energy under forward contracts that are considered derivatives. Undsr forward contracts, Avista
Utilities commits to purchase or sell a specified amount of capacity and energy. These contracts are generally entered into to manage
Avista Utilities' loads and resources. In conjunction with the issuance of SFAS No. 133, the WUTC and the IPUC issued accounting
orders requiring Avista Utilities to offset any derivative assets or liabilities with a regulatory asset or liability. As a result, unrealized
gains or losses for Avista Utilities are not recognized in the Consolidated Statements of Income and Comprehensive Income.
Avista Energy accounts for derivative commodity instruments entered into for trading purposes using the mark-to-market method <-lf
accounting, in compliance with Emerging Issues Task Force (EITF) Issue No.98-10,,,Accounting for Energy Trading and Risk
Management Activities", with unrealized gains and losses recognized in the Consolidated Statements of Income.
On January l, 2001, Avista Utilities recorded a derivative commodity asset of $252.3 million and a derivative commodity liability of
$36.1 million. The difference of $2L6.2 million was recorded as a net regulatory liability in accordance with the accounting orders
from the WUTC and IPUC discussed above. The amounts recorded as of January l, 2001 were based on Avista Utilities' original
interpretations of SFAS No.'s 133, 138 and the guidance of the FASB's Derivative Implementation Group (DIG). Avista Utilities
believed the majority of its long-term purchases and sales contracts for both capacity and energy qualified as normal purchases and
sales under SFAS No. 133 and were not required to be recorded as derivative commodity assets and liabilities. Some contracts for
less than one year in duration (short-term) are subject to booking out, whereby power may not be physically delivered. Avista
Utilities believed these short-term contracts could not be classified as normal purchases and sales and were recorded as a derivative
commodity asset or liability on the Consolidated Balance Sheet.
Based on subsequent interpretations of DIG guidance and rulings, Avista Utilities made changes to its accounting tbr certain contlacts
effective July l, 2001. The DIG released its interpretation of issue C-15, ,$cope Exceptions: Normal Purchases and Normal Sales
Exception for Option-Type Contracts and Forward Contracts in Electricity," on June 27, ZOOL. This DIG issue allows for power
purchase or sale agreements (including forward and option contracts) to qualify for the normal purchase and sale exception provided
certain criteria are met. Based on its interpretation of the guidance from the DIG, Avista Utilities no longer records derivative
commodity assets and liabilities for short-term contracts subject to booking out as it has concluded that these contracts could qualify
forthenormalpurchasesandsalesexception. AsofDecember3l,200l,thederivativecommodityassetbalancewas$l.9million,
the derivative commodity liability balance was $159.4 million and the offsetting net regulatory asset was $157.5 million.
The derivative commodity asset balance is included in Deferred Charges - Utility energy commodity derivative assets, the derivative
commodity liability balance is included in Non-Current Liabilities and Deferred Credits - Utility energy commodity derivative
liabilities, and the offsetting net regulatory asset is included in Deferred Charges - Other regulatory assets on the Consolidated
Balance Sheet. Certain issues and interpretations that may be issued by the DIG could change the conclusions that the Company has
reached regarding accounting for energy contracts and, as a result, the accounting treatment and financial statement impact could
change in future periods.
In September 2000, the FASB issued SFAS No. 140, "Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities," a replacement of SFAS No. 125. This statement revises the standards for accounting for
securitizations and transfers of financial assets and collateral and requires certain disclosures; however, it carries over most of SFAS
FORM NO.2 123.6
Name of Flespondent
Avista CorD.
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t3012002
Year of Report
Dec 3l.2001
NOTES TO FINANCIAL STATEMENTS (Continued)
No. 125's provisions without reconsideration. The standards addressed in this statement are based on consistent application of a
financial components approach that focuses on control. Under this approach, after a transfer of financial assets, an entity recognizes
the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been
surrendered, and derecognizes liabilities when extinguished. This statement became effective for transfers and servicing of financial
assets and extinguishments of liabilities after March 31,2001 and was effective for recognition and reclassification of collateral and
fbr disclosures relating to securitizations and collateral for 2000. The adoption of this statement did not have a material impact on the
Company's financial condition or results of operations.
In June 2001, the FASB issued SFAS No. l4l, ,Susiness Combinations" which applies to business combinations initiated after June
30, 2001. This statement requires that business combinations be accounted for using the purchase method; the use of the
pooling-of-interests method is no longer permitted. The purchase method of accounting requires the measurement of goodwill as the
excess of the cost of an acquired entity over the estimated fair value of net amounts assigned to assets acquired and liabilities assumed.
This statement also addresses the financial statement disclosure requirements for business combinations. The adoption of this
statement did not have a material impact on the Company's financial condition or results of operations.
In June 2001, the FASB issued SFAS No. 142, ,,Goodwill and Other Intangible Assets" which applies to acquired intangible assets
whether acquired singly, as part of a group, or in a business combination. This statement requires that goodwill not be amortized;
however, goodwill for each reporting unit must be evaluated for impairment on at least an annual basis using a two-step approach.
The first step used to identify potential impairment compares the estimated fair value of a reporting unit to its carrying amounr,
including goodwill. If the fair value of a reporting unit is less than its carrying amount, the second step of the impairment evaluation
which compares the implied fair value of goodwill to its carrying amount is performed to determine the amount of the impairment loss,
if any. This statement also provides standards for financial statement disclosures of goodwill and other intangible assets and related
impairment losses. The Company adopted this statement on January l,2N2. The adoption of this statement did not have a material
impact on the Company's financial condition or results of operations.
In June 2001, the FASB issued SFAS No. 143, ,"{ccounting for Asset Retirement Obligations" which addresses financial accounting
and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. This
statement requires the recording of the fair value of a liability for an asset retirement obligation in the period in which it is incuned.
When the liability is initially recorded, the associated costs of the asset retirement obligation will be capitalized as part of the carrying
amount of the related long-lived asset. The liability for the asset retirement obligation will be accreted to its present value each period
and the related capitalized costs will be depreciated over the useful life of the related long-lived asset. Upon retirement of the asset,
the Company will either settle the retirement obligation for its recorded amount or incur a gain or loss upon the retirement of the
long-lived asset. The Company will be required to adopt this statement on January 1, 2003. The Company is in the process of
determining the impact this statement will have on the Company's financial condition and results of operations.
On August l, 2001, the Company adopted SFAS No. 144, ,,.A,ccounting for the Impairment or Disposal of Long-Lived Assets" which
supersedes SFAS No. l2l, ,,.A,ccounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of." This
statement also supersedes the accounting and reporting provisions for the disposal of a business segment as provided for in APB No.
30 ,Reporting the Results of Operations-Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and
Infrequently Occurring Events and Transactions." The statement establishes accounting standards for all long-lived assets to be
disposed of including discontinued operations. Long-lived assets to be disposed of are measured at the lower of their carrying amount
or estimated fair value less selling costs, whether reported in continuing operations or discontinued operations. As such, discontinued
operations will no longer be measured at net realizable value or include amounts for future operating losses. This statement allows for
the reporting as discontinued operations components of an entity with distinguishable operations from the rest of the entity and not
limited to reportable business segments. The Company elected to early adopt this statement. See Note 3 for further information.
NOTE 3. ACCOUNTS RECEIVABLE SALE
In 1997, WWP Receivables Corp. (WWPRC) was formed as a wholly owned, bankruptcy-remote subsidiary of the Company for the
purpose of acquiring or purchasing interests in certain accounts receivable, both billed and unbilled, of the Company. Currently,
WWPRC, the Company and a third-party financial institution have an agreement that expires in May 2002 whereby WWPRC can sell
C FORM NO.2 1 't23.7
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without recourse, on a revolving basis, up to $90.0 million of those receivables. WWPRC is obligated to pay fees that approximate
the purchaser's cost of issuing commercial paper equal in value to the interests in receivables sold. On a consolidated basis, the
amount of such fees is included in operating expenses of the Company. As of December 31, 2001 and 2000, $75.0 million and $80.0
million, respectively, in accounts receivables were sold.
NOTE 4. ENERGY COMMODITY TRADING
The Company's energy-related businesses are exposed to risks relating to, but not limited to, changes in certain commodity prices and
counterparty performance. In order to manage the various risks relating to these exposures, Avista Utilities utilizes electric, natural
gas and related derivative commodity instruments, such as forwards, futures, swaps and options, and Avista Energy engages in the
trading of such instruments. Avista Utilities and Avista Energy have policies and procedures to manage both quantitative and
qualitative risks inherent in these activities. The Company has a comprehensive Risk Management Committee, separate from the
units that create such risk exposure and overseen by the Audit Committee of the Company's Board of Directors, to monitor
compliance with the Company's risk management policies and procedures.
Avista Utilities
Avista Utilities sells and purchases electric capacity and energy at wholesale to and from utilities and other entities under long-term
contracts having terms of more than one year. In addition, Avista Utilities engages in an ongoing process of resource optimization
which involves short-term purchases and sales in the wholesale market in pursuit of an economic selection of resources to serve retail
and wholesale loads. Avista Utilities makes continuing projections of (1) future retail and wholesale loads based on, among other
things, forward estimates of factors such as customer usage and weather as well as historical data and contract terms and (2) resource
availability based on, among other things, estimates of streamflows, generating unit availability, historic and forward market
information and experience. On the basis of these continuing projections, Avista Utilities purchases and sells energy on a quarterly,
monthly, daily and hourly basis to match actual resources to actual energy requirements and sells any surplus at the best available
price. This process includes hedging transactions.
Avista Utilities protects itself against price fluctuations on electric energy by establishing volume limits tbr the imbalance between
projected loads and resources and through the use of derivative commodity instruments for hedging purposes. Any imbalance is
required to remain within limits, or management action or decisions are triggered to address larger imbalance situations and limit the
exposure to market risk. Avista Energy is responsible for the daily management of gas resources to meet the requirements of Avista
Utilities' customers. In addition, Avista Utilities utilizes derivative commodity instruments for hedging price risk associated with
natural gas. The Risk Management Committee has limited the types of commodity instruments Avista Utilities may trade to those
related to electricity and natural gas commodities and those instruments are to be used for hedging price fluctuations associated with
the management of resources. Commodity instruments are not generally held by Avista Utilities for speculative trading purposes.
The market values of natural gas derivative commodity instruments held by Avista Utilities as of December 3 1, 2001 and 2000, were
a $133.2 million net liability and a $1.0 million net asset, respectively. The significant liability position as of December 31, 2001 is a
result of forward commitments to purchase natural gas entered during 2000 and the first part of 2001 at prices in excess of the market
price for natural gas as of December 31,2001.
Market Risk
Avista Utilities and Avista Energy manage, on a portfolio basis, the market risks inherent in their activities subject to parameters
established by the Company's Risk Management Committee. Market risks are monitored by the Risk Management Committee to
ensure compliance with the Company's risk management policies. Avista Utilities measures exposure to market risk through daily
evaluation of the imbalance between projected loads and resources. Avista Energy measures the risk in its portfolio on a daily basis
utilizing a VAR model and monitors its risk in comparison to established thresholds.
Name of Respondent
Avista Com.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Y0
0413012002
Year of Report
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
FORM NO.2 1 123.8
T
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, DalY0
0413012002
Year of Report
Dec 3'1, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
Credit Risk
Credit risk relates to the risk of loss that Avista Utilities and/or Avista Energy would incur as a result of non-performance by
counterparties of their contractual obligations to deliver energy and make financial settlements. Credit risk includes the risk that a
counterparty may default due to circumstances relating directly to it and the risk that a counterparty may default due to circumstances
that relate to other market participants that have a direct or indirect relationship with such counterparty. Avista Utilities and Avista
Energy seek to mitigate credit risk by applying specific eligibility criteria to existing and prospective counterparties and by actively
monitoring crlrent credit exposures. However, despite mitigation efforts, defauls by counterparties periodically occur. Avista Energy
experienced payment receipt defaults from certain parties impacted by the California energy crisis. Avista Energy and Avista Corp.
(through the Avista Utilities division) have engaged in physical and financial transactions with Enron and certain of its affiliates and
experienced disruptions to forward contract commitments as a result of Enron's December 2001 bankruptcy. See Note 24 for more
information.
Credit risk also involves the exposure that counterparties perceive related to performance by Avista Utilities and Avista Energy to
perform deliveries and settlement of energy resource transactions. These counterparties seek assurance of performance in the form of
letters ofcredit, prepayment or cash deposits, and, in the case of Avista Energy, parent company performance guarantees. In periods
of price volatility, the level of exposure can change significantly, with the result that sudden and significant demands may be made
against the Company's capital resource reserves (credit facilities and cash). Avista Utilities and Avista Energy actively monitor the
exposure to possible collateral calls and take steps to minimize capital requirements.
Other Operating Risks
In addition to commodity price risk, Avista Utilities' commodity positions are subject to operational and event risks including, among
others, increases in load demand, transmission or transport disruptions, fuel quality specifications and forced outages at generating
plants. Avista Utilities also has exposure to weather conditions and natural disasters that can cause physical damage to property,
requiring immediate repairs to restore utility service.
NOTE 5. JOINTLY OWNED ELECTRIC FACILITIFS
The Company has a 15 percent interest in a twin-unit coal-fired generating facility, the Colstrip Generating Project (Colstrip) located
in southeastern Montana, and provides financing for its ownership interest in the project. The Company's share of related operating
and maintenance expenses for plant in service is included in the Consolidated Statements of Income. The Company's share of utility
plant in service was $314.3 million and accumulated depreciation was $149.3 million as of December 31,2001.
NOTE 6. PROPERTY, PLANT AND EQUIPMENT
The balances of the major classifications of property, plant and equipment are detailed in the following table as of December 3l
(dollars in thousands):
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Avista Utilities:
Electric production
Electric transmission
Electric distribution
Construction work-in-progress (CWIP) and other
Electric total
Natural gas underground storage
Natural gas distribution
CWIP and otler
Natural gas total
$69t,299
288,739
678,448
119.389
1.777.875
18,130
4t4,422
46.404
478.956
$ 672,070
280,27t
652,966
95.2r9
r.700.526
18,687
396,100
48.558
463.345
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IFORM NO.2 1 123.9
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Common plant (including CWIP) 75.912 74.894
Total Avista Utilities 2,332,743 2,238,765
Energy Trading and Marketing 128,577 72,122
Information and Technology 16,030 13,110Other 2l.ll7 31.663
Total $2498.J67 $2^351-660_
Property, plant, and equipment under capital leases at Avista Capital's subsidiaries totaled $5.4 million and $12.7 million as of
December 31, 2001 and 2000, respectively. The associated accumulated depreciation totaled $2.6 million and $6.8 million as of
December 31,2001 and 2000, respectively.
NOTE 7. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS
The Company has a pension plan covering substantially all of its regular full+ime employees. Certain of the Company's subsidiaries
also participate in this plan. Individual benefits under this plan are based upon years of service and the employee's average
compensation as specified in the plan. The Company's funding policy is to contribute amounts that are not less than the minimum
amounts required to be funded under the Employee Retirement Income Security Acq nor more than the maximum amounts which are
currently deductible for income tax purposes. Pension fund assets are invested primarily in marketable debt and equity securities.
The Company also has a Supplemental Executive Retirement Plan (SERP) that provides additional pension benefits to executive
officers of the Company. The SERP is intended to provide benefits to executive officers whose benefits under the 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.
In 2001, the Company recorded an unfunded accumulated benefit obligation of $l.l million related to the SERP. This resLrlted in a
charge to other comprehensive income of $0.7 million, net of taxes.
The Company provides certain health care and life insurance benefits for substantially all of its retired employees. The Company
accrues the estimated cost of postretirement benefit payments during the years that employees provide services. The Company
elected to amortize this obligation of $34.5 million over a period of twenty years, beginning in 1993.
The following table sets forth the pension and health care plan disclosures as of December 31, 2001 and 2000 and for the years ended
December 31,2001, 2000 and 1999 (dollars in thousands):
Pension Benefits Other Benefits
2001 2000 2001 2000
Change in benefit obligation:
Benefit obligation as of beginning of year $ 184,636 $17 1,424 $32,7 6l $30,637
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Service cost
Interest cost
Actuarial loss
Benefits paid
Expenses paid
Benefit obligation as of end of year
Actual return on plan assets
Employer contributions
Benefits paid
Change in plan assets:
Fair value of plan assets as of beginning of year $175,033 $185,564 $15,196 $15,808
5,716 5,372 460 601
14,293 t3,412 2,567 2,40718,582 7,799 3,267 1,580(11,780) (12,401) (2,635) (2,427)
o37\ (970) (65) B7\$zr05lo $l-84-el6 $36.355 $32J6r
(9,313) (r,00s) (902) \784)- 3,304 5l I I,182
( l 1,078) ( r l,860) (77 r) (e73)
Name of Respondent
Avista CorD.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0413012002
Year of Report
Dec 31. 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
FORM NO.2 1 123.10
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0413012002
Year of Report
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
Expenses paid
Fair value of plan assets as of end of year
Funded status
Unrecognized net actuarial loss (gain)
Unrecognized prior service cost
Unrecognized net transition obligation/(asset)
Accrued benefit cost
Assumptions as of December 31
Discount rate
Expected return on plan assets
Rate of compensation increase
Medical cost trend pre-age 65 - initial
Medical cost trend pre-age 65 - ultimate
Ultimate medical cost trend year pre-age 65
Medical cost trend post-age 65 - initial
Medical cost trend post-age 65 - ultimate
Ultimate medical cost trend year post-age 65
(937)
sl5u05
$(s6,80s)
3t,tM
9,726
(3.757)
$fi9-692)
7.25Vo
9.00%
5.N%o
(970)
$uaor
$ (e,603)
(t2,Lsz)
11,274
@.843)
sll5321)
7.7570
9.0070
5.OOVo
(65) (37)
$rL969 $ls.lgri
$(22,386) $(17,565)(429) (s,96r)
*r- 18.399
$15950) Lr5J27)
7.257o 7.7570
9.OO?o 9.0OVo
9.OO7o 5.00Vo
5.OO?o 5.N7o2003 2000t2.00% 6.00%'6.007o 6.00Vo
20M 2000
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31ff
Components of net periodic benefit cost:
Service cost $5,716 $ 5,372 $ 6,201 $460 $ 601 $ 696
Interest cost 14,293 13,4L2 L2,526 2,567 2,407 2,178
Expected return on plan assets (15,254) (16,243) (15,681) (1,311) (1,372) (1,075)
Transition (asset)/obligation recognition (1,086) (1,086) (1,086) 1,534 1,534 1,534
Amortization of prior service cost 989 I,548 I,918
Net gain recognition 139 (858) 46 -(52)
(300) (159)
Net periodic benefit cost MJ97 $Lldi 53-921 $LlgE $2.870 $3-l.Zt
Assumed health 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, 2001 by $2.6 million and the service and interest cost by $0.2 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 3l, 2001 by
$2.4 million and the service and interest cost by $0.2 million.
The Company 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 401(k) plan 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 401(k) plan.
Employer matching contributions of $3.5 million, $3.3 million, $3.4 million were expensed in 2001, 2000 and 1999, respectively.
NOTE 8. ACCOUNTING FOR INCOME TAXES
As of December 31, 2001 and 2000, the Company had net regulatory assets of $149.0 million and $156.7 million, respectively, !
related to the probable recovery ofcertain deferred tax liabilities from customers through future rates.
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 net deferred income tax
liability consisted of the following as of December 3l (dollars in thousands):
C FORM NO2 1 123.11
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Name of Respondent
Avista Com.
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Y0
o413012002
Year of Report
Dec 31.2001
NOTES TO FINANCIAL STATEMENTS (Continued)
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Deferred tax assets:
Allowance for doubtful accounts
Reserves not currently deductible
Contributions in aid of construction
Deferred compensation
Centralia sale regulatory liability
Other
Total deferred tax assets
Deferred tax liabilities:
Differences between book and tax basis of utility plant
Power and natural gas defenals
Unrealized energy commodity gains
Power exchange contract monetization
Demand side management programs
Loss on reacquired debt
Other
Total deferred tax liabilities
Net defened tax liability
$ 17,431
11,071
9,t76
4,48t
3,415
9.943
55.517
367,406
88,323
66,401
34,444
5,679
4,696
5.996
572.945
L5L7A2A
s 4,943
37,080
8,543
3,848
9,650
rr.792
75.856
366,t26
27,889
86,650
25,484
5,761
4,872
5.384
522.t66
$44fir0
The realization of deferred tax assets is dependent upon the ability to generate taxable income in future periods. The Company
evaluated available evidence supporting the realization of it deferred tax assets and determined it is more likely than not that deferred
tax assets will be realized.
A reconciliation of federal income taxes derived from statutory federal tax rates (35 percent in 2001, 2000 and 1999) applied to
pre-tax income from continuing operations and expense as set forth in the accompanying Consolidated Statements of Income is as
follows for the years ended December 3l (dollars in thousands):
2001 2000 1999I
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Federal income taxes at statutory rates
Increase (decrease) in tax resulting from:
Accelerated tax depreciation
State income tax expense
Prior year audit adjustments
Other-net
Total income tax expense
Income Tax Expense Consisted of the Following:
Federal taxes currently provided
Deferred federal income taxes
Total income tax expense
$32,897
5,849
(8,870)
(3es)
4.905
$34-386
$(44,7ss)
79.14t
L?L386
2001
$62,319
4,835
3,7 t2
72
6.060
$26p9&
$(4,839)
81.837
$76.998
2000
$15,946
1,869
(2,t44)
(t,642)
2.868
$l6EU
$ 4,987
I1.910
$16.89L
1999
Income Tax Expense by Business Segment:
Avista UtilitiesI $ 20,t77 $ (l,eeo)$33,284
FORM NO.2 1 123.12
I
Name of Bespondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of B-eport
(Mo, Da, Yr)
o413012002
Year of Report
Dec 31,2001
NOTES TO FINANCIAL STATEMENTS (Continued)
Energy Trading and Marketing
Information and Technology
Other
Total income tax expense
NOTE 9. ENERGY PURCHASE CONTRACTS
32,489
(11,977)
(6.303)
s11j]86
95,266
( 10, I 38)
(6.140)
$76-998
(34,098)
(3,225)
20.936
$16.897
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The Company has long-term contracts related to the purchase of fuel for thermal generation, natural gas and hydroelectric power. The
termination dates of the contracts range from one month to the year 2044 and the majority provide for minimum purchases at the then
effective market rate. The Company also has various agreements for the purchase, sale or exchange of electric energy with other
utilities, cogenerators, small power producers and government agencies. Total expenses for power purchased, natural gas purchased
for resale and fuel for generation were $1,011.0 million, $1,311.5 million and $706.4 million in 2001,2000 and 1999, respectively.
The following table details future contractual commitments for power and natural gas resources (dollars in thousands):
2002 2003 2004 2005 2006 Thereafter Total
Power resources $t65,322 $179,9s3 $141,612 $89,387 $88,088 $892,218 $1,556,580
Natural gas resources 203.967 172.589 161.924 77.534 49.592 493.461 1.159.067rotal $369.289 5i52542 $303136 $166-92r SL}7-680 $1385^679 $?J)S-6L7
All of the energy purchase contracts were entered as part of Avista Utilities' obligation to serve its retail natural gas and electric acustomers' energy requirements. As a result, these costs are generally recovered either through base retail rates or adjustments to Iretail rates as part of the power and natural gas cost deferral and recovery mechanisms.
The Company has fixed contracts with certain Public Utility Districts (PUD) to purchase portions of the output of certain generating
facilities. Although the Company has no investment in the PUD generating facilities, the fixed contracts obligate the Company to pay
certain minimum amounts (based in part on the debt service requirements of the PUD) whether or not the facility is operating. The
cost of power obtained under the contracts, including payments made when a facility is not operating, is included in resource costs in
the Consolidated Statements of Income. Expenses under these PUD contracts for 2001, 2000 and 1999, were $7.4 million, $7.5
million and $6.4 million, respectively. Information as of December 3 l, 2001, pertaining to these PUD contracts is summarized in the
following table (dollars in thousands):
Company's Current Share of
Debt Revenue Expira-
Kilowatt Annual Service Bonds tion
Orrtnut Canahilitv Costs (l ) Costs ( I \ Outsfendinp l)ate
Chelan County PUD:
Rocky Reach Project
Grant County PUD:
Priest Rapids koject
Wanapum Project
Douglas County PUD:
Wells Project
Totals
37,000 $1,670 $1,0672.9Vo
6.1
8.2
55,000 1,750
75,000 3,07t
$ 9,493 20tt
9,895 2040
t3,t02 2040
5.703 2018
$3&193_
928
1,864
3.s 30.000 942 588
197-000 $7^413 $4AL7
(l) The annual costs will change in proportion to the percentage of output allocated to the Company in a particular
year. Amounts represent the operating costs for the year 2001. Debt service costs are included in annual costs.
The estimated aggregate amounts of required minimum payments (the Company's share of debt service costs) under these
contracts are as follows (dollars in thousands):
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PUD I
T
2OO2 2003 2OO4 2005 2006 Thereafter Total
C FORM NO.2 1 1 23.1 3
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s4.423 S4.651 $4-275 54.701 S3.396 526-256 s47.702
In addition, the Company will be required to pay its proportionate share of the variable operating expenses of these projects.
NOTE 10. LONG.TERM DEBT
The following details the interest rate and maturity dates of secured and unsecured medium-term notes outstanding as of December 3l
(dollars in thousands):
Secured Medium-Term Notes Unsecured Medium-Term Notes
Maturity Interest Interest
Year Rate 2OOl 2000 Rate 2001 2000
Name of Bespondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da;Y0
04t30/2002
Year of Report
Dec 31,2001
NOTES TO FINANCIAL STATEMENTS (Continued)
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2002
2003
2004
2005
2006
2007
2008
2010
2012
2018
2022
2023
2028
Total
$
,1.
15,000
295W
30,000
20,000
10,000
7,000
27,500
24,500
$ 15,000
40,000
r5,000
29,5N
30,000
20.000
10,000
7,000
27,500
24.500
7.597o-7.6OVo
6.287o-6.617o
6.25Vo
6.397o-6.68%o
7.89Vo-7.9OVo
6.89?o-6.95Vo
6.677o-69OVo
7.37Vo
7.26Vo-7.45Vo
7.l8%o-7.547o
8.01%-9.57Vo
8.l5Vo
6.759o-8.99Vo
7.427o
8.l4Vo
5.99Vo-7.947o
6.O6Vo
8.O2Vo
8.05Vo
8.l5%o-8.231o
7.99Vo
6.37Vo-6.88Vo
$ $ 74,000* 10,000
190,000 190,00030,000 30,000
8.000 8.00026,000 26,00025,000 25,00025,000 25,00012,000 12,000
10,000 10,0005,000 5,00045.000 45.000
$376.000 $460-000
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$r.6u00 $218100
* In 2001, the Company legally defeased $50.0 million of Medium-Term Notes scheduled to mature in200.2.
In addition to the required maturities documented in the table above, the Company has sinking fund requirements of $1.6 million in
each of 2002 and 2003, $1.5 million in each of 2OO4 and 2005, and $1.2 million in 2006. The sinking fund requirements may be met
by certification of property additions at the rate of 143 percent of requirements. All of the Company's utility plant is subject to the
lien of the Mortgage and Deed of Trust securing outstanding First Mortgage Bonds.
In April 2@1, the Company issued $400.0 million of 9.75 percent Senior Notes due in 2008. In December 2001, the Company issued
$150.0 million of 7.75 percent First Mortgage Bonds due in 2007. As of December 31,2001, the Company had remaining
authorization to issue up to $317.0 million of Unsecured Medium-Term Notes.
Under various financing agreements, the Company is restricted as to the amount of additional First Mortgage Bonds that it can issue.
As of December 31, 2001, the Company could issue $146.7 million of additional First Mortgage Bonds under the most restrictive of
these financing agreements.
In September 1999, $83.7 million of Pollution Control Revenue Refunding Bonds (Avista Corporation Colstrip Project), Series
1999A due2032 and Series 19998 due 2034 were issued by the City of Forsyth, Montana. The proceeds of the bonds were utilized to
refund the $66.7 million of 7.13 percent First Mortgage Bonds due 2013 and the $17.0 million of 7.40 percent First Mortgage Bonds
due 2016. The Series 1999A and Series 19998 Bonds are backed by an insurance policy issued by AMBAC Assurance Corporation.
The interest rate during 2001 ranged from 2.15 percent to 4.50 percent. As of December 31, 2001, the rate was 2.17 percent and was
a floating rate that adjusted periodically. In January 2002, lhe interest rate on the bonds was fixed for a period of seven years at a rate
of 5.00 percent for Series 1999A and 5. I 3 percent of Series 19998.
RC FORM NO.2 123.14
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IOther long-term debt consisted of the following items related to subsidiary operations as of December 3l (dollars in thousands):
2001 2000
Name of Respondent
Avista Com.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Y0
0413012002
Year of Report
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
Notes payable
Capital lease obligations
Subsidiary total debt
Less: current portion
Subsidiary net long-term debt
NOTE 11. SHORT.TERM BORROWINGS
$ 688
2.tot
2,789
1.827
$JS2
$@2
2.878
3,520
901
$_2^6_t9_
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As of December 31, 2001, the Company maintained a committed line of credit with various banks in the total amount of $220 million
that expires on May 29,2002. Under this committed line of credit, the Company may have up to $50 million in letters of credit
outstanding. As of December 31, 2001 there were $13.9 million of letters of credit outstanding. The Company pays commitment
fees of up to 0.2 percent per annum on the average daily unused portion of the credit agreement, and utilization fees of up to 0.5
percent.
The committed line of credit agreement contains customary covenants and default provisions, including covenants not to permit the
ratio of ,,consolidated total debf' to ,,consolidated total capitalization" of Avista Corp. to be, at the end of any fiscal quarter, greater
than 60 percent. As of December 31, 2001, the ratio was in compliance with this covenant at 59.4 percent. The committed line of
credit also has a covenant requiring the ratio of ,,consolidated cash flow" to ,,consolidated fixed charges" of Avista Corp. or Avista
Utilities for any four-fiscal quarter period ending at any fiscal quarter end to be less than certain specified ratios. In August 2001, the
Company determined that it would not be in compliance with the fixed charge coverage covenant for the period ending September
30, 2001 or for any subsequent period through the termination date of the agreement. Accordingly, in September 2001, Avista Corp.
requested, and obtained, a waiver of this covenant through the termination date of the agreement. As a result of this waiver, the
failure to comply with this covenant does not constitute an event of default under the agreement. Additionally, Avista Corp. secured
the committed line of credit with first mortgage bonds in connection with this waiver.
In addition, the Company had a $50 million regional commercial paper program that is backed by the committed line of credit.
During 2001, under various agreements with banks, the Company could also have up to $100 million in loans outstanding at any one
time, with the loans available at the banks' discretion. These arrangements provided, if funds were made available, for fixed-term
loans for up to 180 days at a fixed rate of interest. None of these agreements were in place as of December 3 I , 2001 .
Balances and interest rates of bank borrowings under these arrangements were as follows as of and for the years ended December 3l
(dollars in thousands):
2(nt r999
Balance outstanding at end of period:
Fixed-term loans
Commercial paper
Revolving credit agreement
Maximum balance outstanding during the period:
Fixed-term loans
Commercial paper
Revolving credit agreement
Average balance outstanding during the period:
Fixed-term loans
ss,ooo
r 1,160
223,0N
I I,160
r52,000
80,000
36,900
185,000
19,538
33,500
10,000
75,000
93,500
10,000
75,000
29,tto
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IRC FORM NO.2 1 123.15
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Commercial paper
Revolving credit agreement
Average interest rate during the period:
Fixed-term loans
Commercial paper
Revolving credit agreement
Average interest rate at end of period:
Fixed-term loans
Commercial paper
Revolving credit agreement
558
108,996
-Vo
7.80
5.95
-Vo
5.42
r6,833
84,255
6.707o
6.82
7.26
-7o
7.63
7.55
2,604
23,767
5.4870
5.89
5.87
6.56Vo
6.70
6.7 t
As of December 31, 2001 Avista Energy and its subsidiary, Avista Energy Canada, Ltd., as co-borrowers, had a credit agreement with
a group of commercial lenders in the aggregate amount of $155 million expiring June 28,2N2. This credit agreement may be
terminated by the banks at any time and all extensions of credit under the agreement are payable upon demand, in either case at the
lenders' sole discretion. This agreement also provides, on an uncommitted basis, for the issuance of letters of credit to secure
contractual obligations to counterparties. This facility is guaranteed by Avista Capital and secured by substantially all of Avista
Energy's assets. The maximum amount of credit extended by the banks for the issuance of letters of credit is the subscribed amount of
the facility less the amount of outstanding cash advances, if any. The maximum amount of credit extended by the banks for cash
advances is $30 million. Letters of credit outstanding under the facility totaled approximately $39.6 million and $71.5 million as of
December 31, 2001 and 2000, respectively.
The Avista Energy credit agreement contains customary covenants and default provisions, including covenants to maintain ,Jninimum
net working capital" and ,,minimum net worth", as well as a covenant limiting the amount of indebtedness which the co-borrowers may
incur. In addition, the agreement contains certain restricted payment provisions generally prohibiting distributions.
In October 2001, Avista Capital entered into a $20 million promissory note collateralized by certain receivables. The note is due in
monthly installments of $0.2 million including interest at a variable rate (6.0 percent as of December 31,2001). The note has a
balloon payment of $18.8 million due in October 20012 and there was $19.8 million outstanding under the promissory note as of
December 31,2001.
NOTE 12. LEASES
The Company has multiple lease arrangements involving various assets, with minimum terms ranging from one to twenty-five years
and expiration dates from 2002 to 2020. The Company's most significant leased assets include the Rathdrum CT and the corporate
office building. Certain of the lease arrangements require the Company, upon the occurrence of specified events, to purchase the
leased assets. The Company's management believes the likelihood of the occurrence of the specified events under which the
Company could be required to purchase the leased assets is remote. Rental expense under operating leases for the years ended
December 31, 2001, 2000 and 1999 was $19.8 million, $16.2 million and $18.7 million, respectively. Future minimum lease
payments required under operating leases having initial or remaining noncancelable lease terms in excess of one year as of December
31, 20Ol were as follows (dollars in thousands):
Year endins December 3l: 2W2 2OO3 2004 2005 2006 Thereafter Total
Minimum payments required sr7 4S3 sr5 841 Sr3 565 S8 g7r SR)77 S77 507 Sl4l 6515
The payments under the Avista Capital subsidiaries'capital leases for the next three years are $1.4 million in2OO2, $0.7 million in
2003 and $0.2 million in 20[,4. As of December 31, 2001, there were no material capital lease payments at Avista Capital
subsidiaries past 2004.
Name of Respondent
Avista Coro.
This Report is:
(1) X An Originalel A Resubmission
Date ol Report
(Mo, Da, Yr)
0413012002
Year of Report
Oec 31,2001
NOTES TO FINANCIAL STATEMENTS (Continued)
RC FORM NO.2 123.16
I
Name of Respondent
Avista Coro.
This Beport is:
(1) X An Originalel A Resubmission
Date ol Report
(Mo, Da, Yr)
o4t30t2002
Year of Report
Dec 31,2001
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 13. PREFERRED STOCK.CI.'MULATIVE
On September 15,2002,2003,2004,2005 and 2006, the Company must redeem 17,500 shares at $100 per share plus accumulated
dividends through a mandatory sinking fund. As such, redemption requirements are $ 1.75 million in each of the years 2002 through
2006. The remaining shares must be redeemed on September 15,2007 . The Company has the right to redeem an additional 17,500
shares on each September 15 redemption date. Upon involuntary liquidation, all preferred stock will be entitled to $100 pel share
plus accrued dividends.
NOTE T4. CONVERTIBLE PREFERRED STOCK
In December 1998, as part of a dividend restructuring plan, the Company issued 1,540,460 shares of its $12.40 Convertible Preferred
Stock, Series L (Series L Preferred Stock), in exchange for 15,404,595 shares of common stock, on the basis of a one-tenth interest in
one share of preferred stock for each share of common stock. The Series L Preferred Stock had a liquidation preference of $I82.8125
per share.
During 1999, the Company repurchased the equivalent of 32,250 shares of the Series L Prefened Stock. In February 2000, the
Company exercised its option to convert all the remaining outstanding shares of Series L Preferred Stock into common stock. One
share of Series L Preferred Stock equaled l0 depositary shares, also known as RECONS (Return-Enhanced Convertible Securities).
The RECONS were also converted into common stock on the same conversion date. Each of the RECONS was converted into the
following: 0.7205 shares of common stock, representing the optional conversion price; plus 0.0361 shares of common stock,
representing the optional conversion premium; plus the right to receive $0.21 in cash, representing an amount equivalent to
accumulated and unpaid dividends up until, but excluding, the conversion date. Cash payments were made in lieu of fractional shares.
NOTE 15. COMPANY.OBLIGATED MANDATORILY REDEEMABLE PREFERRED TRUST SECURITIES
ln 1997 , Avista Capital I, a business trust, issued $60.0 million of Preferred Trust Securities with an annual distribution rate of 7.875
percent. Concurrent with the issuance of the Prefered Trust Securities, Avista Capital I issued $1.9 million of Common Trust
Securities to the Company. The sole assets of Avista Capital I are the Company's 7.875 percent Junior Subordinated Deferrable
Interest Debentures, Series A, with a principal amount of $61.9 million. These debt securities may be redeemed at the Company's
option on or after January l5,2OO2 and mature January 15,2037 .
In 1997, Avista Capital II, a business trust, issued $50.0 million of Preferred Trust Securities with a floating distribution rate of
LIBOR plus 0.875 percent, calculated and reset quarterly. The annual distribution rate paid during 2001 ranged from 2.95625 percent
to 7.61125 percent. As of December 31, 2001, the annual distribution rate was 2.95625 percent. Concurrent with the issuance of the
Preferred Trust Securities, Avista Capital II issued $1.5 million of Common Trust Securities to the Company. The sole assets of
Avista Capital II are the Company's Floating Rate Junior Subordinated Deferrable Interest Debentures, Series B, with a principal
amount of $51.5 million. These debt securities may be redeemed at the Company's option on or after June l, 2007 and mature June
1,2037. In December 2000 the Company purchased $10.0 million of these Preferred Trust Securities.
The Company has guaranteed the payment of distributions on, and redemption price and liquidation amount in respect of, the
Preferred Trust Securities to the extent that Avista Capital I and Avista Capital II have funds available for such payments from the
respective debt securities. Upon maturity or prior redemption of such debt securities, the Trust Securities will be mandatorily
redeemed. The Consolidated Statements of Capitalization reflect only $60.0 million and $40.0 million of Preferred Trust Securities
as all intercompany transactions have been eliminated.
NOTE 16. FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of the Company's long-term debt (including current-portion, but excluding notes payable and other) as of December 31,
ERC FORM NO.2 1 123.17
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Name of Respondent
Avista Com.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
04t30t2002
Year of Report
Dec 31, 200't
NOTES TO FINANCIAL STATEMENTS (Continued)
20Ol and 2000 was estimated to be $1,160.2 million, or 99 percent of the carrying value, and $772.5 million, or l0l percent of the
carrying value, respectively. The fair value of the Company's mandatorily redeemable preferred stock was estimated to be $17.5
million, or 50 percent of the carrying value as of December 31, 2001 and 2000. The fair value of the Company's preferred trust
securities as of December 31, 2001 and 2000 was estimated to be $84.6 million, or 85 percent of the carrying value, and $79.2
million, or 79 percent of the carrying value, respectively. These estimates were based on available market information.
NOTE 17. COMMON STOCK
In April 1990, the Company sold 1,000,000 shares of its common stock to the Trustee of the Investment and Employee Stock
Ownership Plan for Employees of the Company (Plan) for the benefit of the participants and beneficiaries of the Plan. In payment for
the shares of common stock, the Trustee issued a promissory note payable to the Company in the amount of $ 14. I million. Dividends
paid on the stock held by the Trustee, plus Company contributions to the Plan, if any, are used by the Trustee to make interest and
principal payments on the promissory note. The balance of the promissory note receivable from the Trustee ($5.7 million as of
December 31,2001) is reflected as a reduction to common equity. The shares of common stock are allocated to the accounts of
participants in the Plan as the note is repaid. During 2001, the cost recorded for the Plan was $5.8 million. Interest on the note
payable to the Company, cash and stock contributions to the Plan and dividends on the shares held by the Trustee were $0.6 million,
$1.6 million and $0.1 million, respectively during 2001.
In May 1999, the Company's Board of Directors authorized the Company to repurchase in the open market or through privately
negotiated transactions up to an aggregate of l0 percent of its common stock and common stock equivalents over the next two years.
The repurchased shares retum to the status of authorized but unissued shares. During 1999 and 2000, the Company repurchased
approximately 4.8 million common shares and 322,500 shares of Return-Enhanced Convertible Securities (equivalent to 32,250 shares
of Convertible Preferred Stock, Series L). The combined repurchases of these two securities represented 9 percent of outstanding
common stock and common stock equivalents. No common shares were repurchased during 2001.
In November 1999, the Company adopted a shareholder rights plan pursuant to which holders of common stock outstanding on
February 15, 1999, or issued thereafter, were granted one preferred share purchase right (Right) on each outstanding share of
common stock. Each Right, initially evidenced by and traded with the shares of common stock, entitles the registered holder to
purchase one one-hundredth of a share of prefened stock of the Company, without par value, at a purchase price of $70, subject to
certain adjustments, regulatory approval and other specified conditions. The Rights will be exercisable only if a person or group
acquires l0 percent or more of the outstanding shares of common stock or commences a tender or exchange offer, the consummation
of which would result in the beneficial ownership by a person or group of l0 percent or more of the outstanding shares of common
stock. Upon any such acquisition, each Right will entitle its holder to purchase, at the purchase price, that number of shares of
common Stock or preferred stock of the Company (or, in the case of a merger of the Company into another person or group, common
stock of the acquiring person) that has a market value at that time equal to twice the purchase price. In no event will the Rights be
exercisable by a person that has acquired l0 percent or more of the Company's common stock. The Rights may be redeemed, at a
redemption price of $0.01 per Right, by the Board of Directors of the Company at any time until any person or group has acquired l0
percent or more of the common stock. The Rights expire on March 3L,2009. This plan replaced a similar shareholder rights plan
that expired in February 2000.
The Company has a Dividend Reinvestment and Stock Purchase Plan under which the Company's stockholders may automatically
reinvest their dividends and make optional cash payments for the purchase of the Company's common stock at current market value.
In March 2000, the Company began issuing shares of its common stock to the Employee Investment Plan rather than having the Plan
purchase shares of common stock on the open market. In the fourth quarter of 2000, the Company also began issuing new shares of
corrmon stock for the Dividend Reinvestment and Stock Purchase Plan. During the 2001 and 2000, a total of 332,861 and 125,636
shares of common stock were issued to these plans, respectively.
NOTE 18. EARMNGS PER COMMON SHARE
EBC FORM NO.2 1 123.'t8
In February 2000, all outstanding shares of Series L Preferred Stock were converted into 11,410,047 shares of common stock. The
weighted-average number of shares of common stock outstanding during 2000 related to the converted shares was9,975,997. The
costs of converting the Series L Prefened Stock into common stock totaled $21 .3 million during the first quarter of 2000, with $ I 8. I
million representing the optional conversion premium and $3.2 million attributable to the regular dividend on the preferred stock. As
of December 31, 1999 1,508,210 shares of $12.40 Convertible Preferred Stock, Series L, that was convertible into 15,082,100 shares
of common stock were outstanding. All of these potential common shares and the associated dividends were excluded from the
computation of diluted earnings per common share for 1999 because their inclusion had an anti-dilutive effect on earnings per
common share. The following table presents the computation of basic and diluted earnings per common share for the years ended
December 3l (in thousands, except per share amounts):
2001 2000 1999
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Name o, Respondent
Avista Corp.
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
0413012002
Year of Report
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
Numerator:
Income from continuing operations
Loss from discontinued operations
Net income
Deduct: Preferred stock dividend requirements
Income available for common stock
Denominator:
Weighted-average number of common shares
outstanding-basic
Effect of dilutive securities:
Restricted stock
Stock options
Weighted-average number of common shares
outstanding-diluted
Earnings per common share, basic:
Earnings per common share from continuing operations
Loss per common share from discontinued operations
Total earnings per common share, basic
Earnings per common share, diluted:
Earnings per common share from continuing operations
Loss per common share from discontinued operations
Total earnings per common share, diluted
NOTE 19. STOCK COMPENSATION PLANS
Avista Cory,
$59,60s
@7.4r';g',)
$12,156
2.432
$9J2A
47,4t7
5
13
41435
$1.21
( 1.00)
$o2r
$1.20
(l.00)
$020
$101,055
(9.376\
91,679
23.735
$5L944
45,690
101
312
4eio3
$ 1.69
(0.20)
$L19
$ 1.67
(0.20)
$LlZ
$28,662
o.63t')
26,03t
2t392
$_4-639
38,213
tt2
33325
$0.19
(0.07)
$0-12
$0.19
(0.07)
$0-r2
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In 1998, the Company adopted and shareholders approved an incentive compensation plan, the Long-Term Incentive Plan (t998
Plan). Under the 1998 Plan, certain key employees, directors and officers of the Company and its subsidiaries may be granted stock
options, stock appreciation rights, stock awards (including restricted stock) and other stock-based awards and dividend equivalent
rights. The Company has available a maximum of 2.5 million shares of its common stock for grant under the 1998 Plan. The shares
issued under the 1998 Plan are purchased by the trustee on the open market. Non-employee Directors were added to this plan in
2000.
In 2000, the Company adopted a Non-Officer Employee Long-Term Incentive Plan (2000 Plan). The provisions of the 2000 Plan are
essentially the same as those under the 1998 Plan, except for the exclusion of directors and officers of the Company. The Company
has available a maximum of 2.5 million shares of its common stock for grant under the 2000 PIan.
The Company accounts for stock based compensation using APB No. 25 ,,,{ccounting for Stock Issued to Employees" which requires
FORM NO.2 (ED.1 123.19
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the recognition of compensation cost on the excess, if any, of the market price of the stock at the date of grant over the exercise price
of the option. As the exercise price for options granted under the 1998 Plan and the 2000 Plan was equal to the market price at the
date of grant, there is no compensation expense recorded by the Company. SFAS No. 123, ,,Accounting for Stock-Based
Compensation," requires the disclosure of pro forma net income and earnings per common share had the Company adopted the fair
value method of accounting for stock options. Under this statement, the fair value of stock-based awards is calculated with option
pricing models. These models require the use of subjective assumptions, including stock price volatility, dividend yield, risk-free
interest rate and expected time to exercise. The fair value of options is estimated on the date of grant using the Black-Scholes
option-pricing model.
As of December 31,2001, there were 2.5 million shares available for future stock option grants under the 1998 Plan and the 2000
Plan.
The following summarizes stock options activity under the 1998 Plan and the 2000 Plan for the years ended December 3l:
2001 2000 r 999
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Y0
o41fi12002
Year of Report
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
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Number of shares under stock options:
Options outstanding at beginning of year
Options granted
Options exercised
Options canceled
Options outstanding at end of year
Options exercisable at end of year
1,843,900
781,900
(2,750)
082.57s)
2^MoA75
__183^075
r,360,325
623,200
(44,975)
(94.6s0)
t-84380Q
__58LQZ1
2001 2000
589,800
780,700
( 10.175)
L360JZt_
_r47)N_
1999
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Weighted average exercise price:
Options granted
Options exercised
Options canceled
Options outstanding at end of year
Options exercisable at end of year
Weighted average fair value of options granted during the year
Principal assumptions used in applying the Black-Scholes model:
$ 12.43
$ 17.96
$ 19.22
$ 17.49
$ 19.28
$ 23.03 $ 17.21
$ 18.s3 $
$ 18.1s $ 18.63
$ 19.80 $ 18.29
$ 18.72 $ 19.63
$ 5.54 $ 12.02 $5.02
Risk-free interest rate
I Expected life, in years
I ExpecteO volatility
Expected dividend yield
4.057o - 5.137o 5.87Vo - 6.87?o 5.579o - 6.639o
7
60.8090
3.93Vo
7
58.47Vo
2.34Vo
7
27.92Vo
3,ILVO
I Information with respect to options outstanding and options exercisable as of December 31,2001 was as follows:
Ootions OutstandinsI
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Options Exercisable
Weighted
Average
Number Exercise
Exercise Prices of Shares Price Life (in Lears) of Shares Price
$11.80 9.9
Weighted Weighted
Average Average
Number Exercise Remaining
$11.80
$ 16.48-$ 17.31
$18.31-$20.11
700,900
673,900 17.23 7.0 356,350
279,750
$-
17.29
18.61395.775 18.73 6.2
ERC FORM NO.2 1 123.20
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$22.54-$n.AO
s26.5e-$28.72
Total
611,700
58.200
2.MoA75
22.58
27.t9
$r7.49
7.5
7.9
7.8
230,t75
16.800
883^075
22.59
27.tt
s19.28
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net income and IIf compensation expense for the Company's stock option plans were determined consistent with SFAS No. 123,
earnings per common share would have been the following pro forma amounts for the years ended December 3l:
200r 2000 1999
Name of Respondent
Avista Corp.
This Report is:
(1)X An Originalel A Resubmission
Date of Report
(Mo, Da, Y0
o413012002
Year of Report
Dec 31.2001
NOTES TO FINANCIAL STATEMENTS (Continued)
Net income (dollars in thousands):
As reported
Pro forma
Basic earnings per common share
As reported
Pro forma
Diluted earnings per common share
As reported
Pro forma
$l2,ls6
$ 9,355
$ 0.21
$ 0.ls
$ 0.20
$ 0.1s
$ 91,679
$ 89,8s0
$ 1.49
$ 1.45
$ 26,031
$ 24,636
$ 0.12
$ 0.08
$ 0.12
$ 0.08
t.47
1.43
$
$
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The Company granted 1,000 and 20,000 shares of restricted common stock in 20@ and 1999, respectively. No shares of restricted
stock were granted in 2001. Participants are entitled to dividends and to vote their respective shares. The sale or transfer ofrestricted
stock is prohibited during the vesting period except as specified in the award agreements. The value of restricted stock awards is
established by the average market price on the date of grant. Restricted stock awarded in 2001, 2000 and 1999 vests over periods
from four to five years.
Common equity was reduced in the accompanying Consolidated Statements of Capitalization by the cost of restricted shares acquired
on the open market. Accordingly, the Company is recording compensation expense ratably over the restriction periods based on the
reduction to common equity.
Avista Capilal Companie s
Certain subsidiaries of Avista Capital have employee stock incentive plans under which certain employees and directors of the
Company and the subsidiaries are granted options to purchase subsidiary shares at prices no less than the fair market value on the date
of grant. Options outstanding under these plans usually vest over periods of between three and five years from the date granted and
terminate ten years from the date granted. Upon termination of employment, vested options may be exercised and the lelated
subsidiary shares may be, but are not required to be, repurchased by the applicable subsidiary at estimated fair value.
NOTE 20. COMMITMENTS AND CONTINGENCIES
The Company believes, based on the information presently known, that the ultimate liability for the matters discussed in this note,
individually or in the aggregate, taking into account established accruals for estimated liabilities, will not be material to the
consolidated financial condition of the Company, but could be material to results of operations or cash flows for a particular quarter
or annual period. No assurance can be given, however, as to the ultimate outcome with respect to any particular issue.
Securities Litigation
On July 27,z00l0, John Bain filed a lawsuit in the U.S. District Court for the Eastern District of Washington against the Company and
Thomas M. Matthews, the former Chairman of the Board, President and Chief Executive Officer of the Company, and Jon E. Eliassen,
a Senior Vice President and the Chief Financial Officer of the Company. On August 2, 2000, Wei Cao and William Dalton filed
separate lawsuits in the same Court against the Company and Mr. Matthews. On August 7,2OOO, Martin Capetz filed a lawsuit in the
same Court against the Company, Mr. Matthews and Mr. Eliassen. On November 9, 2000, the Court entered an order consolidating
ERC FORM NO.2 1 123.21
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the cases, appointing the lead stockholder-plaintiff, and appointing lead stockholders-plaintiffs' counsel to prosecute the litigation. On
February 13, 2001, plaintiffs filed their First Amended and Consolidated Class Action Complaint asserting claims on behalf of a
purported class of persons who purchased Company common stock during the period April 14, 2000, through June 21, 2000. In their
consolidated complaint, plaintiffs asserted violations of Section l0(b) of the Securities Exchange Act of 1934, as amended, and Rule
l0b-5 thereunder, arising out of various alleged misstatements and omissions in the Company's Annual Report on Form lO-K for the
year 1999, its Quarterly Report on Form lO-Q for the quarter ended March 31, 2000, and in other information made publicly available
by the Company, and, further, claimed that plaintiffs and the purported class suffered damages as a result thereof. Such alleged
misstatements and omissions were claimed to relate to the Company's trading activities in wholesale energy markets, the Company's
risk management policies and procedures with respect thereto, and the Company's trading losses in the second quarter of 2000. The
plaintiffs requested, among other things, compensatory damages in unspecified amounts and other relief as the Court may deem
proper. On March 29,2001, the Company filed a Motion to Dismiss the Consolidated Complaint, which was granted by the Court on
June 14, 2001 without prejudice to allow the plaintiffs the opportunity to amend the complaint to seek to cure the deficiencies
identified by the Court.
On January 8,2002, plaintiffs filed a protective notice of appeal with the Ninth Circuit Court of Appeals, wherein they appealed the
District Court's Order Granting Defendants' Motion to Dismiss on June 14,2OOl, and its December 20,2OOl Order Denying
Plaintiffs' Motion to Lift Stay of Discovery. On February 2,2002, the parties filed a stipulation with the Ninth Circuit Court of
Appeals, whereby all parties agreed to dismiss the appeal with prejudice. On February 4,2002, the parties also filed a stipulation of
dismissal of the case with prejudice in the District Court. On February 7 ,2002, the District Court issued its order dismissing the case
with prejudice, and on February 14,2002, the Court of Appeals issued its order dismissing the appeal with prejudice.
Securities and Exchange Commission Inquiry
In October 2000, the staff of the Securities and Exchange Commission requested certain information and documentation from the
Company regarding Avista Utilities' wholesale trading activities and its risk management policies and procedures with respect thereto.
The Company complied with this request, and has supplemented its response, at the Securities and Exchange Commission's request,
with respect to current risk management practices.
Commodity Futures Trading Commission Investigation
Avista Energy and several of its former employees were subjected to an investigation by the Commodity Futures Trading Commission
(CFTC) into futures trading of certain Palo Verde and California Oregon Border electricity futures contracts traded on the New York
Mercantile Exchange on four separate dates in 1998. The CFTC's Division of Enforcement (Division) recommended to the CFTC
Commissioners that Avista Energy and several of its former employees be charged with manipulation, attempted manipulation and
other charges in connection with trading on those four dates. In August 2001 Avista Energy reached a settlement with the Division in
which it neither admits nor denies the allegations, paid a fine of $2.1 million and agreed to a cease and desist order with respect to
certain trading activities.
State of Washington Business and Occupation Tax
The State of Washington's Business and Occupation Tax applies to gross revenue from business activities. For most types of
business, the tax applies to the gross sales price received for goods or services. For certain types of financial trading activities,
including the sale of stocks, bonds and other securities, the tax applies to the realized gain from the sale of the financial asset. On an
audit for the years 1997 through June 2000, the Department of Revenue (DOR) took the position that approximately 20 percent of the
energy futures trades of Avista Energy should not be treated as securities trades, but rather as energy deliveries. As a result, the DOR
applied tax against the gross sales price ofthe energy contracts at issue. Avista Energy subsequently received an assessment of$14.5
million for tax and interest related to the disputed issue. It is the position of Avista Energy that all of its futures trading activities are
substantively the same and there is no proper basis for the distinction made by the DOR. An administrative appeal was filed with the
DOR and a hearing was held on September 25,2001. Avista Energy is prepared to seek relief in the Washington courts if a
satisfactory determination is not received.
ERC FORM NO.2 123.22
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Y0
o4130/2002
Year of Report
Dec 3'1, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
Name of Respondent
Avista Com.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
o413012002
Year of Report
Dec 3'l, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
Hamilton Street Bridge Site
A portion of the Hamilton Street Bridge Site in Spokane, Washington (including a former coal gasification plant site that operated for
approximately 60 years until 1948) was acquired by the Company through a merger in 1958. The Company no longer owns the
property. Initial core samples taken from the site indicate environmental contamination at the site. On January 15, 1999, the
Company received notice from the State of Washington's Department of Ecology (DOE) that it had been designated as a potentially
liable party (PLP) with respect to any hazardous substances located on this site, stemming from the Company's past ownership of the
former gas plant site. In its notice, the DOE stated that it intended to complete an on-going remedial investigation of this site,
complete a feasibility study to determine the most effective means of halting or controlling future releases of substances from the site,
and to implement appropriate remedial measures. The Company responded to the DOE acknowledging its listing as a PLP, but
requested that additional parties also be listed as PLPs. In the spring of 1999, the DOE named two other parties as additional PLPs.
An Agreed Order was signed by the DOE, the Company and Burlington Northern & Santa Fe Railway Co. (BNSF) (another PLP) on
March 13, 2000 that provided for the completion of a remedial investigation and a feasibility study. The work to be performed under
the Agreed Order includes three major technical parts: completion of the remedial investigation; performance of a focused feasibility
study; and implementation of an interim groundwater monitoring plan. During the second quarter of 2000, the Company received
comments from the DOE on its initial remedial investigation, then submitted another draft of the remedial investigation, which was
accepted as final by the DOE. After responding to comments from the DOE, the feasibility study was accepted by the DOE during the
fourth quarter of 2000. After receiving input from the Company and the other PLPs, the final Cleanup Action Plan (CAP) was issued
by the DOE on August 10,2001. On September 10,2001, the DOE issued a draft Consent Decree for the PLPs to review. During the
fourth quarter of 2001, the Company and BNSF commenced negotiations on a PLP agreement and provided joint comments
regarding the draft Consent Decree to the DOE. The Company's portion of the costs associated with the CAP is not material to the
Consolidated Statements of Income and were accrued for in the Consolidated Balance Sheet.
Sale of Certain Pentzer Corporation Subsidiaries
On February 26,2OOI,IDX Corporation, formerly known as Store Fixtures Group, Inc., filed a complaint against Pentzer in *,e IUnited States District Court for the District of Massachusetts, alleging breach of contract and negligent misrepresentation relating to a -
stock purchase agreement. Pursuant to this agreement, Pentzer sold the capital stock of a group of companies on August 3l, 1999. -Plaintiff alleges that Pentzer breached various representations and warranties concerning financial statements a'nO inrentory, !contending that reliance on such representations and warranties caused them to pay more for the group of companies than they were r
worth. In total, plaintiff claims damages in the approximate amount of $9 million. Pentzer has retained legal counsel and intends to
vigorously defend against this action.
I
On April 7,2000, Creative Solutions Group, Inc. and Form House Holdings, Inc. filed a complaint against Pentzer in the United
States District Court for the District of Massachusetts, alleging misrepresentations and breach of representations and warranties made 1undeq a stock purchase agreement. Pursuant to this agreement, Pentzer sold the capital stock of a group of companies on March 3 I, I1999. On November 2,z0ol, plaintiffs filed a motion to amend their complaint. The proposed amended pleading, among other -
things, removes Form House Holdings, Inc. as a plaintiff; however, plaintiff Creative Solutions Group, Inc. continues to allege that rPentzer made misrepresentations and breached various representations and warranties conceming financial statements, cost of goods !sold and inventory, contending that reliance on such representations and warranties caused them to pay more for the group of r
companies than they were worth. In total, plaintiff alleges damages in the approximate amount of $31 million, plus exemplary
damages, interest and attomey's fees. A trial date is currently scheduled for June 2002. Pentzer has retained legal counsel and !intends to vigorously defend against this action. I
Spokane River
In March 2001, the Washington State Department of Ecology (Ecology) informed Avista Development of a f,"ultn uarirory I
concerning PCBs found in fish caught in a portion of the Spokane River. In June 2001 Avista Development received official notice as -
ERC FORM NO.2 1 123.23 I
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Name of Respondent
Avisla Com.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0413012002
Year of Report
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS (Continuedl
a potentially liable person with respect to contaminated sites on the Spokane River. Ecology discovered PCBs in fish and sediments
in the 1970s and 1980s. In the 1990s, Ecology performed subsequent sampling of the river and identified potential sources of the
PCBs, including the Spokane Industrial Park (SIP) and a number of other entities in the area. The SIP, renamed Pentzer Development
Corporation (Pentzer Development) in 1990, operated a wastewater treatment plant at the site until it was closed in December 1993.
The SIP's treatment plant discharged to the Spokane River under the terms of a National Pollutant Discharge Elimination System
permit issued by Ecology. Pentzer Development sold the property in 1996 and merged with Avista Development in 1998. Avista
Development filed a response to this notice in August 2001. In December 2001, Ecology confirmed Avista Development's status as a
PLP and named at least three other PLPs in this matter. The Company has not accrued a liability for any potential future costs;
however, the Company believes that any future costs would be immaterial.
Lake Coeur d'Alene
In July 1998, the United States District Court for the Disrict of Idaho issued its finding that the Coeur d' Alene Tribe of Idaho owns
portions of the bed and banks of Lake Coeur d'Alene and the St. Joe River lying within the current boundaries of the Coeur d'Alene
Reservation. This action was brought by the United States on behalf of the Tribe against the State of ldaho. While the Company is
not a party to this action, the Company is continuing to evaluate the potential impact of this decision on the operation of its
hydroelectric facilities on the Spokane River, downstream of Lake Coeur d'Alene. The United States District Court decision was
affirmed by the Ninth Circuit Court of Appeals. The United States Supreme Court affirmed this decision in June 2001. This will
result in the Company being liable to the Coeur d'Alene Tribe of Idaho for payments for use of reservation lands under Section lO(e)
of the Federal Power Act. The amount of such payments and other effects this ruling may have on the Company is not known and
can not be estimated at this time.
Montana Hydroelectric Security Act Initiative
In November 2001, an initiative was presented in the state of Montana to create a public agency to own and operate all hydroelectric
generating facilities within the State. The initiative would allow for the new public agency to acquire through a negotiated purchase
or an acquisition at fair market value through a condemnation proceeding all hydroelectric facilities larger than 5 MW that are in the
,,public interest" to own and operate for the benefit of the people of Montana. The output from the hydroelectric facilities could be
sold at wholesale or retail, with preferences for non-industrial customers and customers with demand of less than I aMW. The
Company's largest generation plant, the Noxon Rapids Hydroelectric Generating Station (Noxon Rapids) (527 MW), is located in
Montana on the Clark Fork River. In February 2000, Avista Utilities received a new 45-year operating license from the FERC that
applies jointly to the Cabinet Gorge (located in Idaho) and Noxon Rapids projects.
The proposal is being presented as a ballot initiative, which allows for the enactment of law through public vote without legislative
approval. The initiative was reviewed and approved by the following parties in the state of Montana: the Legislative Service Division,
the Attorney General and the Secretary of State. The supporters of the initiative need to gather 20,5 l0 signatures, including at least 5
percentof thevotersin34of thel00statedistrictsbyJune2l,2OO2. If thisisaccomplished,theinitiativewill bepresentedtothe
public in the November 2AO2 General Election and will require a majority vote to become law.
If this proposed initiative is passed into law and Noxon Rapids were to be acquired from the Company, it could have significant
negative ramifications for the Company. As such, the Company intends to vigorously oppose this initiative and intends to legally
defend itself against the acquisition of Noxon Rapids. The Company is unable predict whether or not the proposed initiative will
obtain the necessary signatures and if it does, whether or not the initiative would pass in the November 2002 election. Further, the
Company is not able to predict whether any legal challenge would be successful and ultimately the full impact this initiative could
have on the Company's financial condition and results of operations.
Enron Corporation
On December 2,2001, Enron Corporation (Enron) and certain of its affiliates filed for protection under chapter ll of the United
States Bankruptcy Code. The bankruptcy filing constituted an event of default under contracts between Avista Corp. and Avista
C FOBM NO.2 123.24
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Y0
0413012002
Year of Report
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
Energy, respectively, and certain Enron affiliates, Enron Power Marketing, Inc. (EPMI), Enron North America Company (ENA) and
Enron Canada Corp. (ECC), that are guaranteed by Enron. As a result, Avista Corp. and Avista Energy terminated all but one of
these contracts and suspended trading activities with most Enron affiliates; short-term, balance of the month deals with EPMI are still
being transacted through Avista Energy on a prepaid basis.
Both Avista Corp. and Avista Energy engage in physical and financial transactions for the purchase and sale of electric energy and
capacity and natural gas. Both companies had done considerable business and had short-term and long-term contracts with Enron
affiliates. Avista Corp. has one three-year purchase with remaining deliveries scheduled from 2004 to 2006 with EPMI. Avista
Energy's long-term contracts with Enron affiliates were terminated entirely.
As of December 31, 2001, Avista Corp. and Avista Energy had net accounts receivable of $3.I million and $ 14.l million, respectively,
from Enron affiliates. The contracts of Avista Corp. and Avista Energy with each Enron affiliate provide that, upon termination, the
net settlement of accounts receivable and accounts payable with such entity will be netted against the net mark-to-market value of the
terminated forward contracts with such entity. It is estimated that, for each of Avista Corp. and Avista Energy, netting the
mark-to-market liability against the defaulted net accounts receivable will result in no significant loss due to non-collection from the
Enron affiliates. It is further estimated that the net mark-to-market liability to Enron affiliates in respect of terminated forward
contracts of Avista Corp. and Avista Energy, taken together, exceeds total net accounts receivable from these entities by less than $30
million. Any claims by the Enron entities for amounts that Avista Corp. and Avista Energy might owe in respect of the terminated
forward contracts would be subject to any defenses and counterclaims which Avista Corp. and Avista Energy may have. Any residual
obligation by Avista Corp. or Avista Energy for termination payments is not expected to have a material impact on the Company's
financial condition or results of operations.
The estimates of the mark-to-market values of terminated forward contracts are based on available broker quotes, for the respective
periods, and on assumptions as to future market prices and other information. While Avista Corp. and Avista Energy believe these
assumptions are reasonable, they are subject to change and ultimately could be challenged by the Enron entities or their bankruptcy
trustees. The mark-to-market value of terminated contracts has not been firmly established and could result in undercollection that is
not expected to be material to the financial condition or results of operations of either Avista Corp. or Avista Energy.
National Energy Production Corporation (NEPCO), a wholly owned subsidiary of Enron, is the contractor responsible for the
engineering, procurement and construction of the Coyote Springs 2 project. Avista Corp. owns 50 percent of the Coyote Springs 2
project, which is expected to commence commercial operation in the third quarter of 2002. NEPCO was not included in the
bankruptcy filings made by Enron and its affiliates. However, Enron guaranteed NEPCO's obligations, and the bankruptcy filing by
Enron was an event of default under the Coyote Springs 2 construction contract. NEPCO and Coyote Springs 2, LLC amended the
construction contract to, among other things, authorize Coyote Springs 2, LLC to make immediate draws under a letter of credit
posted to secure NEPCO's performance and to permit Coyote Springs 2,LLC to pay third-party subcontractors of NEPCO directly.
Coyote Springs 2,LLC is continuing to assess the ability of NEPCO to perform its obligations under the construction contract and
may need to exercise additional remedies in the event the impact of the Enron bankruptcy prevents NEPCO tiom pertbrming rts
obligations under the construction contract.
Avista Corp. is party to a power exchange arrangement which expires in 2016. Under this power exchange arrangement, EPMI
purchases capacity from Avista Corp. and sells capacity to Spokane Energy LLC (Spokane Energy), a subsidiary of Avista Corp.,
formed in 1998 solely for the purpose of monetizing the long{erm capacity contract between PGE and Avista Corp. Spokane Energy
sells the related capacity to PGE, a subsidiary of Enron that has not been included in the bankruptcy filing to date and is in the process
of being sold to another company. This power exchange arrangement was originally established for the purpose of monetizing a
$145 million long-term capacity contract between Avista Corp. and PGE. EPMI assisted in setting up the monetization structure and
acts as an intermediary to abide by certain regulatory restrictions that currently prevent Spokane Energy and Avista Corp. from
dealing directly with each other. The transaction is structured such that Spokane Energy bears full recourse risk tbr a monetization
loan (balance of $131.1 million as of December 31, 2001) that matures in January 2015 with no recourse to Avista Corp. related to the
loan. EPMI is obligated to pay approximately $150,000 per month to Avista Corp. for its capacity purchase and servicing functions
related to this power exchange arrangement. EPMI defaulted on two payments to Avista Corp. prior to filing fbr bankruptcy. As a
FORM NO.2 (ED.1 't23.25
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result, in December 2001, Avista Corp. and EPMI entered an agreement that allows Avista Corp. to continue receiving the monthly
payments from EPMI while Avista Corp. evaluates alternatives with respect to EPMI's involvement in the transaction going forward.
Other Contingencies
In the normal course of business, the Company has various legal claims and other contingent matters outstanding. The Company
believes that any ultimate liability arising from these actions will not have a material adverse impact on the Company's financial
condition or results of operations.
The Company routinely assesses, based on in-depth studies, expert analyses 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 have and have not agreed to a settlement and recoveries from insurance carriers. The Company's policy is to
immediately 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.
The Company has potential liabilities under the Federal Endangered Species Act (ESA) for species of fish that have either already
been added to the endangered species list, been listed as,,threatened" or been petitioned for listing. Thus far, measures adopted and
implemented have had minimal impact of the Company. The operating license for the Clark Fork Projects describes the approach to
restore bull trout populations in the project areas. Using the concept of adaptive management, the Company is evaluating the
feasibility of fish passage, and, depending upon the results of these experimental studies, determine the applications of funds toward
continuing fish passage efforts or other population enhancement measures.
The Company continues to study the issue of high dissolved gas levels downstream of Cabinet Gorge during spill periods, as agreed to
in the Settlement Agreement for the new license for Cabinet Gorge. To date, intensive biological studies in the lower Clark Fork River
and Lake Pend Oreille documented minimal biological effects of high dissolved gas levels on free ranging fish. Under the terms of the
Settlement Agreement, the Company will develop an abatement and/or mitigation strategy in2OO2.
Under the federal licenses for its hydroelectric projects, the Company is obligated to protect its property rights, including water rights.
The State of Montana is examining the status of all water right claims within state boundaries, which could potentially adversely
affect the generating capacity of the Company's Cabinet Gorge and Noxon Rapids hydroelectric facilities. The Company is
participating in this extended process, which is unlikely to be concluded in the foreseeable future.
The Company must be in compliance with requirements under the Clean Air Act Amendments (CAAA) at the Colstrip thermal
generating plant, in which the Company maintains an ownership interest. The anticipated share of costs at Colstrip is not expected to
have a major economic impact on the Company.
As of December 31, 2001, the Company's collective bargaining agreement with the International Brotherhood of Electrical Workers
represented approximately 53 percent of all employees. The current agreement with the local union representing the majority of the
bargaining unit employees expires on March 25,2002. A local agreement in the South Lake Tahoe area, which represerits 5
employees, expires on March 25,2002. Negotiations are currently ongoing with respect to both agreements that expire on March 25,
2002.
NOTE 21. ACQUTSITIONS AND DTSPOSITTONS
In May 2000, the owners of the Centralia Power Plant sold the plant to TransAlta. Avista Utilities recorded an after-tax gain totaling
$37.2 million from the sale of its 17.5 percent ownership interest in the plant. Of the total after-tax gain, $9.0 million was recorded in
the Consolidated Statements of Income for the year ended December 3I, 2000 and $28.2 million was deferred and returned to Avista
Utilities' customers through rates over established periods of time. Washington customers received $20.7 million of the after-tax gain
through pre-tax credits to their electric bills over the two-month period of December 2000 and January 2001. Idaho customers are
C FORM NO.2 1 123.26
Name of Respondent
Avista CorD.
This Report is:
(1) X An Original(21 A Resubmission
Date of Report
(Mo, Da, Yr)
0413012002
Year of Report
Dec 31, 2001
NOTES TO FINANCIAL STATEMENTS (Continued)
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, DalYr)
o4t30t2002
Year of Report
Dec 31, 2001
NOTES TO FINANC|AL STATEMENTS (Continued)
receiving the remaining $7.5 million of the after-tax gain, which is a rate reduction of 1.8 percent, over an eight-year period.
During the first quarter of 1999, Pentzer sold its Creative Solutions Group, a group of five portfolio companies that provide
point-of-purchase displays and other merchandising and packaging services to retailers and consumer product companies. The sale
resulted in a gain of $10.1 million, net of taxes. During the third quarter of 1999, Pentzer sold its Store Fixtures Group, a group of six
portfolio companies that design, manufacture and deliver store fixture products to major retailers. The sale resulted in a gain of $27.6
million, net of taxes. In November 1999, Pentzer purchased the International Retail Services Group, a company that provides
backroom supplies for retail stores; this company was sold in November 2000.
NOTE 22. SELECTED QUARTERLY FINANCIAL DATA (Unaudited)
The Company's energy operations are significantly affected by weather conditions. Consequently, there can be large variances in
revenues, expenses and net income between quarters based on seasonal factors such as temperatures and streamflow conditions. A
summary of quarterly operations (in thousands, except per share amounts) for 2001 and 2000 follows:
Three Months Ended
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September December30 11
2001
Operating revenues
Operating expenses
Income from operations
Income (loss) from continuing operations
Loss from discontinued operations
Net income (loss)
Income (loss) available for common stock
Outstanding common stock:
Weighted average
End of period
Eamings (loss) per share, basic:
Earnings (loss) per share from continuing operations
Loss per share from discontinued operations
Total earnings (loss) per share, basic
Earnings (loss) per share, diluted:
Earnings (loss) per share from continuing operations
Loss per share from discontinued operations
Total earnings (loss) per share, diluted
Dividends paid per common share
Trading price range per common share:
High
Low
2000
Operating revenues
Operating expenses
Income (loss) from operations
lncome (loss) from continuing operations
Loss from discontinued operations
Net income (loss)
$2,024,882
1,959,435
65,U7
32,12t
(2,718)
29,403
$28,795
47,237
47,266
$0.67
(0.06)
$0-6.r
$0.67
(0.06)
$0.6.t
$0.12
$20.63
$15.60
$1,380,935
1,348,668
32,267
12,755
(2230)
10,525
$1,546,493
1,489,943
56,550
25,980
(3,255)
22,725
$22,tt7
47,372
47,465
$0.54
(0.07)
$0-47
$0.54
(0.07)
$032
$0.12
$23.97
$16.27
$1,352,432
1,376,919
(24,487)
(19,t23)
(2,370)
(2tAe3)
$1,401,183
r,3675@
33,6t9
6,1ll
(38,42t)
(32,3t0)
$(32,918)
47,486
47,537
$0.12
(0.81)
$rc-69)
$0.12
(0.8r)
$CI-69)
$0.12
$19.98
$13.40
$2,862,809
2,79r,581
7r,228
36,419
( r,87e)
34,540
$1,037,289
t,023,613
t3,676
(4,607)
(3,055)
(7,662)
$(8,270)
47,569
47,633
$(0.r l)
(0.06)
$rcJ2
$(0. l r)
(0.06)
$rc.rz)
$0.12
$14.60
s10.60
$2,309,401
2,t7t,32t
138,080
71,004
(2,897)
68,107
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IERC FORM NO.2 123.27
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Income (loss) available for common stock
Outstanding common stock:
Weighted average
End of period
Earnings (loss) per share, basic:
Earnings (loss) per share from continuing operations
Loss per share from discontinued operations
Total earnings (loss) per share, basic
Earnings (loss) per share, diluted:
Earnings (loss) per share from continuing operations
Loss per share from discontinued operations
Total earnings (loss) per share, diluted
Dividends paid per common share
Trading price range per common share:
High
Low
$(1 l,38s)
41,297
47,078
$(0.22)
(0.06)
$(o2E)
$(0.22)
(0.06)
$(o28)
$0.12
$68.00
$14.63
$(22,101)
47,t13
47,r28
$(0,42)
(0.05)
$(0-47)
$(0.42)
(0.05)
$(0.47)
$0.12
$41. l3
$15.7s
$33,932
47,147
47,t59
$0.76
(0.04)
$0J2
$0.76
(0.M)
$0J2
$0.12
$30.44
$16.81
$67,498
47,1'12
47,209
$1.49
(0.06)
$Lt3
$1.48
(0.06)
$L12
$0. l2
$23.50
$17.88
Name of Respondent
Avista Corp.
This Report is:
(1) X An OriginalQ) A Resubmission
Date of Report
(Mo, Da, Yr)
o413012002
Year of Report
Dec 31. 2001
NOTES TO FINANCIAL STATEMENTS (Continuedl
ERC FORM NO.2 123.28
N:urp oI Responoent
Avista Corporation
Ims KeDort ls:
(1)EAn original
(2)flA Resubmission
ljate Ol Kepon
(Mo, Da, Yr)
Aptil30,2002
Year ot Report
Dec. 31,2001
SIJMMARY OF UTILITY PLANT AND ACCUMI.]LATED PROVISIONS
FOR DEPRECIATION. AMORTZATION AND DEPLETION
Line
No.
Item
(al
Total
(b)
Electric
(c)
1 UTILITY PLANT
z In Service
3 Plant in Service (Classified)Note (1)2.237.279.559 1.728.655.37
4 Propefi Under Capital Leases 13.919.860 7.033
5 Plant hrcbased or Sold 0
6 Comleted Construction not Classified
7 Emerimental Plant Unclassified 0
8 TOTAL (EnrerTotal of lines 3 thru 7)2.251.199,419 1.728.662.170
9 lrased to Others
10 Held for Future Use
11 Constnrction Work in Progress 54-964-082 49.212-991
L2 Acouisition Adiustments 26.580.O73 0
13 TOTAL Utilitv Plant (Enter Total of lines 8 thru 12 )2-332-743.574 t.777.875.161
L4 Accurn Prov. for Depr.. Amort.. & Depl.767.101.656 567.893.375
15 Net Utility Plant (Enter total of line 13 less 14)1.565.641.918 1.209.981.786
t6
DETAIL OF ACCUMULATED PROVISIONS FOR
DEPRECIATION. AMORTZATION AND DEPLETION
t7 ln Service:
18 Deoreciation Nore (1)750.636.956 566.628.662
t9 Amort. and Depl. of Producine Nat. Gas Land and Land Riehts
20 0
2t Amort. of Other Utilitv Plant Note (2)2.787.903 1.264.7t3
22 TOTAL in Sel:rdce (Enter Total of lines 18 tttru 21)753-424-859 567 -893-375
23 l.eased to Others
24 Deoreciation
25 Amortization md Depletion
26 TOTAL Leased to Others (Enter Total of lines 24 and25\
27 Held for Future Use
28 Deoreciation
29 Amortization
30 TOTALHeId forFuture Use (Ent. Tot. of lines 28 amLd29\
3t Abandonnp,nt of Leases (Natural Gas)
32 Amort. of Plant Acouisition Adiustment 13.676.797 0
33
TOTAL Accumulated Provisions (Should agree with line 14 above)
@nter Total of lines 22,26,30, 31, and32)767.10t.656 567.893.375
company's rnvestment m was
disallowed recovery through rates. Pursuant to FAS-90, a reserve was established to recognize this rate treatment.
This amount was charged to net income in 1986 and is offset against electric plant-in-service on the balance sheet.
The amormt is ($2,787,845) forWashington and ($1,096,189) for Idaho.
Note: (2) Accumulated Amortization of Plant Acquisition Adjustments is charged to account 114.xx; Lll.zO Miscellaneous
Amortization. Accrunulated Amortization of Computer Software is charged to I 1 1.48 and Amortization of Lease
HoId Improverents to account lll.46
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FERC FORM NO. 2 (ED. 12-89)Page2O0
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NaIIp oI Kespondent
Avista Corporation
This Reoort Is:(l) tr An original
(2) ! A Resubmission
iJate oI Report
Apil34,2002
Year of Report
Completed
Dec.31,2001
SUMMARY OF UTILITY T
FOR DEPRECIATION, AM
,LANT AND ACCIJMULATED PROVISIONS
ORTZATION AND DEPLETION (Continued)
Gas
(dt
Other (Specify)
(el
Other (Specify)
(f)
Other (Specify)
(pl
Common
(ht
Line
No.
I
2
448.010.603 60.613.819 3
332.603 13580.224 4
5
6
7
u8.343.2M 74.194.043 8
9
10
4.032.981 1.7 r8.110 l1
26.580 073 t2
478-956-260 75.9t2.153 13
172.415.429 26.792.852 l4
306.540.831 49.119.301 15
a:l
iil
:::!l
t6
t7
157.215.442 26.792.852 18
::i:::::::.::19
20
t-523-190 0 2t
158.738.632 26.792.852 )')
23
24
25
26
27
28
29
30
3t
13.676.797 32
172.415-429 26.792.852 33
FERC FORM NO.2 (ED. 12-89)Page201
Name of Respondent
Avista Corp.
This report is:
IX] An Original
t I A Resubmission
Date of Report
(Mo, Da, Yr)
April30,2002
Year Ending
Dec.31,2001
GAS PLANT IN SERVICE (ACCOUNTS 101. 102. 103. AND 106)
1. Report below the original cost of gas plant in service according to estimated basis il necessary, and include the entries in column (c).
the prescribed accounts.Also to be included in column (c) are entries for reversals of tentative
2. ln addition to Account 101, Gas Plant in Seruice (Classitied) , this distributions of prior year reported in column (b). Likewise, il the
page and the ner.t include Account 102, Gas Plant Purchased or respondent has a significant amount ol plant retirements which have
So/d, Account 'l03, Exryrimental Gas Plant lJnclassilied, and not been classilied to primary accounts at the end ol the year, include in
Account 10€, Completd Cqtstruction Not Classitied-Gas.column (d) a tentative distribution ol such retirements, on an estimated
3. lnclude in column (c) and (d), as appropriate, corrections ol basis, with appropriate contra entry to the account for accumulated
addilions and retirements lor the current or preceding year. depreciation provision. lnclude also in column (d) reversals of tentative
4. Enclose in parenthesis credit adjustments of plant accounts to distributions ol prior yea/s unclassilied retirements. Attach
indicate the negative effect of such accounts.supplemental statement showing the account distributions of these
5. Classify Account 106 according to prescribed accounts, on an tentative classilications in columns (c) and (d).
Line
No.
Account
(a)
Balance at
Beginning of Year
(hl
Additions
(c)
1
2
3
4
5
6
7
8
o
10
11
12
13
14
15
16
17
18
19
20
21
?2
23
24
25
26
27
28
29
30
31
32
33
INTANGIBI.E PLANT
301 Oroanization 490.72 (0.021
302 Frandrises and Consents 1.592.ss
303 Miscellaneous lnhnoible Plant 3.040.521.77 24s.843.17
TOTAL lnlanqible Plant Gnter Total of lines 2 thru 4)3.042.605.04 245,843.15
PRODUCTION PLANT
Natural Gas Production and Gathednq Plant
325.1 Producino Lands
325.2 Producino Leaseholds
325.3 Gas Riohts
325.4 Riohts-of-Wav
325.5 Other Land and Land Riohts
326 Gas Well Struc{ures
327 Field Comoressor Station Structures
328 Field Measudno and Reoulatino Station Equipment
329 Other Struc-tures
330 ProducinoGasWells-WellComtruction
3I]1 Producino Gas Wells-Well Eouioment
532 Field Lines
333 Field Comoressor Station Eouioment
334 Field Measudno and Reoulatino Shtion Equioment
335 Ddllino and Cleanino Eouiunenl
336 Pudfication Eouioment
337 Other Eouioment
338 Unsuccessful Exoloration and Develoomenl Costs
TOTAL Production and Gatherino Plant (Enter Total of lines 8 thru 25)0.00 0.00
PRODUCTS EXTRACTION PI.ANT
340 Land and t and Ridtts
341 Structures and lmorovements
U2 Extraclion and Refinino Eouioment
343 Pioe Lines
U4 Extracted Produds Stoaoe Eouioment
345 ComoressorEouiomenl
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FERC FORM NO.2 (ED.12-96)Page 204
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Name of Respondent
Avista Corp.
This report is:
IXI An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Yr)
April30,2002
Year Ending
Dec.31,2001
GAS PLANT lN SERVICE (ACCOUNTS 101. 102. 103. AND 106) (Continued)
including the reversals of the prior years tentative account and show in column (f) only the offset to the debits or credits to
disiributions of these amounts. Careful observance of the primary account classilications.
above instructions and the texts o, Account 101 and 106 will 7. For Account 399, state the nature and use of plant included in this
avoid serious omissions ol respondent's reported amount for account and il substantial in amount submit a suplementary
plant actually in service at end of year. statement showing subaccount classification of such plant
6. Show in column (f) reclassifications or transfers within utility conforming to the requirements of these pages.
plant accounts. include also in column (f) the additions or 8. For each amount comprising the reported balance and changes in
reductions of primary account classifications arising from Account 102, state the property purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. ln or purchaser, and date of transaction. lf proposed lournal entries
showing the clearance of Account 102, include in column (e) have been filed with the Commission as required by the Unilorm
the amounts with respect to accumulated provision lor System of Accounts, give date of such liling.
depreciation, acquisition adjustments, etc.,
Retirements
{cl'l
Adjustments
(e)
Transfers
rfl
Balance at End of Year
(o)
Line
No.
1
2
3
4
5
b
7
8
9
10
11
't2
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
(490.701 0.00
1.592.55
222.913.59 3.063.451.3s
222.913.59 0.00 (490.70 3.065.043.90
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 0.00 0.00 0.00
0.00
0.00
0.00
0.00
0.00
0.00
FERC FORM NO.2 (ED.12-96)Page 205
Name of Respondent
Avista Corp.
fhis report is:
iXlAn Original
i lA Resubmission
Date of Report
(Mo, Da, Yr)
April30,2002
Year Ending
Dec. 31, 2001
GAS PLANT lN SERVICE (ACCOUNTS 101. 102. 103. AND 106) (Continued)
Line
No.
Account
la\
gl
35
36
37
38
39
40
41
42
43
M
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
oo
67
68
69
70
7',l
72
73
74
75
76
T7
78
79
80
346 Gas Measurino and Reoulatino Eouioment
&47 Other Eouioment
TOTAL Products Extraction Planl (Enter Total ol lines 28 thru 35)0.00 0.00
TOTAL Natural Gas Production Plant (Enter Total of lines 26 and 36)0.00 0.00
Manufactured Gas Production Plant (Submit Suoplementary Statement)218,373.93
TOTAL Production Plant (Enter Total of lines 37 and 38)218.373.93 0.00
NATURAL GAS STORAGE AND PROCESSING PLANT
Underoround Storaoe Plant
350.1 Land 368.627.73 25.485.48
350.2 Riohts-of-Wav 23.874.O3
351 Structures and lmorovements 1.069.958.40
352 Wells 5.571.336.52 17.129.30
352.'l Storaoe Leaseholds and Riohts 254.554.23
352.2 Reservoirs 173,991.80 (13,8s8.98)
352.3 Non-recoverable Natural Gas 6.121.926.03 0.00
353 Lines 799.012.40
354 Comoressor Station Eouioment 1.578.718.'15 323.674.42
355 Measurino and Reoulatino Equioment 940.961.30
356 Purification Eouioment 458,s70.06
357 Other Equioment 1.580.587.18 45.609.48
TOTAL Underoround Storaoe Plant (Enter Total of lines 42 thru 53)18.941.917.83 398,039.70
Other Storaoe Plant
360 Land and Land Riohts
361 Structures and lmorovements
362 Gas Holders
363 PurificationEouioment
363-1 Liouefaclion Eouiornent
363 2 Vanorizinn Forrinmanl
363.3 Comoressor Eouioment
363 4 Maasrlrinn anrl Flaarrlalinn Fauinmenl
363.5 Other Eouioment
TOTAL Other Sioraoe Plant (Enter Total of lines 56 thru 64)0.00 0.00
Base Load Liquefied Natural Gas Terminalino and Processino Plant
364.1 Land and Land Riohts
364.2 Structures and lmorovements
364.3 LNG Processino Terminal Eouioment
364.4 LNG Transooration Eouioment
364.5 Measurino and Reoulatino Eouiomenl
364.6 Comoressor Station Eouioment
364.7 Communications Eouioment
364.8 Other Eouioment
TOTAL Base Load Lio Nat'l Gas. Terminal and Processino Plant (lines 67-74 0.00 0.00
TOTAL Nat'l Gas Storaoe and Processino Plant (Total ol lines 54. 65 and 75 18.941.917.83 398.039.70
TRANSMISSION PLANT
365.1 Land and Land Riohts 7.973.05
365.2 Riqhts-of-Wav 49.777.73
366 Structures and lmorovements 15.788.60
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FERC FORM NO.2 (ED. 12-96)Page 206
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Name of Respondent
Avista Corp.
This report is:
IX]An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Yr)
April30,2002
Year Ending
Dec. 31, 2001
Line
No.
0.00 34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 218,373.93
0.00 0.00 0.00 218.373.93
394,113.21
23.874.03
'1.061.767.12
s.528,478.68
254.354.23
147.14s.O4
6.121.926.03
799.012.40
1.882.178.8s
153.964.74
403.712.62
1.614,289.80
955.140.78 0.00 0.00 18.384.816.75 54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
7'.|
72
73
74
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0,00 0.00 0.00 0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 0.00 0.00 0.00 75
76
77
78
79
80
955.140.78 0.00 0.00 18.384.816.75
0.00
0.00
(15.788.60)0.00
FERC FORM NO.2 (ED. 12-s6)Page 2O7
Name of Respondent
Avista Corp.
Ihis report is:
iXlAn Original
i lA Resubmission
Date of Report
(Mo, Da, Yr)
April30,2002
Year Ending
Dec. 31, 2001
GAS PI-ANT lN SERVICE (ACCOUNTS 101. 102.103. AND 106) (Continued)
Line
No.
Accounl
(a)
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
367 Mains 2.463.107.98 177,055.04
368 Comoressor Station Eouioment
369 Measurino and Reoulatino Eouioment 88.062.89
370 Communications Equioment 49,100.02
371 Other Eouioment
TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)2.673.810.27 177.055.44
DISTRIBUTION PLANT
374 Land and Land Riohts 105.943.46
375 Structures and lmorovemenls 472.781.31 22.489.11
376 Mains 198.442.690.06 7.716.839.18
377 Comoressor Siaiion Eouioment
578 Measurino and Reoulatino Eouioment-General 3.918.346.11 (304.411.5s)
379 Measurino and Reoulatino Eouioment-Citv Gate 1.657.216.14 158.798.95
380 Services 143.719.446.42 6.072.704.O8
381 Meters 45.834.043.60 2.412.9+3.41
82 Meter lnstallations 0.00
383 House Reoulators 0.00
384 House Reoulator lnstallations
385 lndustrial Measurino and Reoulatino Station Eouioment 1.948.791.86 358.959.82
386 Other Prooerfu on Customers' Premises
386 Other Eouioment 539.29
TOTAL Distdbution Plant (Enter Totals of lines 88 thru 101)396.099.798.25 16.437.723.00
GENERAL PLANT
389 Land and Land Riohts 330.820.93
390 Structures and lmprovements 2.382.268.O2 7.552.0'.|,
391 Office Fumiture and Eouioment 9,685.00
392 Transoortation Eouioment 3.351.153.40 125.131.13
393 Stores Equioment 83,972.22 0.00
394 Tools. Shoo. and Garaoe Eouioment 1.873.695.68 g'.t,741.',tz
395 LaboratorvEouioment 865,739.20 9,260.92
396 Power Ooerated Eouioment 2.305.082.63 103.270.75
397 Commrrniealion Fnrrinmanl 1.494.887.75 6,979.82
398 Miscellaneous Eouioment 34.471.93
Subtotal (Enter Totals of lines 104 thru 113)12.731.776.76 343.935.75
399 Other Tanoible Prooertv
TOTAL General Plant (Enter Totals of lines 114 and 115)12.731.776.76 343,935.75
TOTAL (Accounts 101 and 106)43(!.708.282.08 17.602.596.64
Gas Plant Purchased (See lnstruction 8)
/Less) Gas Plant Sold (See lnstruction 8)
Exoerimental Gas Plant Unclassified
TOTAL Gas Plant in Service (Enter Totals of lines 117 thru 120)433.708.282.08 17.602.596.64
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FERC FORi' NO. 2 (ED. 12-96)Page 208
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Name of Respondent
Avista Corp.
This report is:
IX]An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Yr)
April30,2002
Year Ending
Dec. 31, 200't
Line
No.
0.00 (2.640.163.02)0.00 81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
0.00
536.85 @7.526.04'0.00
0.00 (49.100.02'0.00
0.00
536.85 0.00 (2.850.328.46 0.00
7,973.05 113.916.51
6.457.84 14.207.9'.1 510,936.17
99.409.60 2.563.641.78 208.623.761.42
0.00
19.693.20 207.033.96 3.801.275.32
78.7'.t4.65 (19.507.92'1.7'.t7.792.52
238j66.27 149.553.984.23
429.390.24 47.820.965.09
0.00 0.00
0.00 0.00
0.00
30.854.02 1.457.84 2.278,355.50
0.00
0.00 539.29
894.770.14 0.00 2.778.774.94 414.421.526.05
330.820.93
15,999.44 122.85 2.373.943.44
9.685.00
0.00 0.00 3.476.284.53
83.972.22
14.981.43 1.9s0,455.37
1.178.81 873.821.31
0.00 2.408.353.38
51.251.49 49,100.02 1.499.716.10
u.471.93
83.4't't.17 0.00 49.222.87 13.041.524.21
0.00
83.411.17 0.00 49.222.87 13.041 .524.21
2.156.772.53 0.00 e2.821.35'M9.'t31.284.84 117
0.00 118
119
120
121
0.00
0.00
2.156.772.53 0.00 e2.821.95'449.131.284.84
FERC FORM NO.2 (ED.12-96)Page 209
Name of Respondent
Avista Corp.
This report is:
IX] An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Yr)
April 30,2002
Year Ending
Dec. 31, 2001
CONSTRUCTION WORK IN PROGRESS-GAS (ACCOUNT 107)
'l . Report below descriptions and balances at end ol year of and Demonstralion (see Accounl 107 of the Unilorm System ol
projects in process ofconstruction (Account 107). Accounts).
2. Show items relating lo'research, developmenl, and 3. Minor projects (less lhan $1,000,000) may be grouped.
demonslration' projects last, under a caption Research,
Line
No.
Description of Project
(a)
Construction Work in Progress-Gas
(Account 107)
(b)
Estimated Additional
Cost of Project
(c)
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
33u
35
36
37
38
39
40
41
42
43
44
STATE OF WASHINGTON
Minor Projects (53) Under $1,000,000
STATE OF IDAHO
Minor Projects (23) Under $1,000,000
STATE OF OREGON
Minor Projects (32) Under $1,000,000
STATE OF CALIFORNIA
Minor Projects (2) under $1,000,000
COMMON-WASI-UIDAHO
Minor Projects (1) Under $1 ,000,000
coMMoN-oRlcAtwNto
Minor Proiects (2) under $1,000,q)0
1,864,978.59
220,822.09
'l,358,627.13
13,221.85
575,330.93
278,sO7.45
1,449,782.41
217,426.91
565,7s6.87
6,778.15
45 TOTAL 4.311.488.O4 2.239.744.U
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FERC FORM NO.2 (ED.12-96)Page 2'16
Name ofRespondent
Avista Corp.
Ihis Report Is:
ll) tXI AnOriginal
'2) t IAResubmission
Date of Report
(Mo. Da. Yr,)
4t30t2002
Year of Report
Dec. 31.2001
CONSTRUCTION OVERHEADS - GAS
I . List in column (a) to kinds of overheads according to the titles used by the respondent. Charges for outside professional services for engineering fees and
maDagement or supervision fees capitalized should be shown as separate items. 2. On Page 218 furnish information concerning construction overheads. 3.
respondent should not report "none" to the page if no overhead apportionments are made, but rather shoud explain on Page 2 I 8 the accounting procedures,
:mployed and the amounts of engineering, supervision and administrative costs, etc. which are directly charged to construction. 4. Enter on this page
:ngineering, supervision, administrative, and allowance for funds used during construction, etc., which are first assigned to a blanker work order and then
rrorated to construction iobs.
A
Line
No.
Description of Overhead
(a)
Total Amount
Charged
for the Year'
(b)
I 3as Distribution Construction Ensineerins & Suoervision - WA/ID t,2t3,798
2 3as Distribution Construction Ensineerins & Suoervision - OR/CA 548,759
3
4
5
6
1
8
9
0
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2
J
4
5
6
7
8
9
20
2t
22
23
24
25
26
27
28
29
30
3l
32
55
34
35
36
37
38
39
40
4t
42
43
44
45
46 TOTAL $1.762.55'1
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rr*"FoRMNo.2 (ED. t2-e6)Page2ll
Name of Respoodent
Avista Corp.
fhis Report Is:
il) [X] AnOriginal
'2) I I AResubmission
Date of Repon
(Mo. Da. Yr.)()/i.-an-)((r')
Year of ReponDec.3l,200l I
GENERAL DESCRIPTION OF CONSTRUCTION OVERIIEAD PROCEDURE
l. For each coustruction overhead explain: (a) the nature and extetrt of work, etc. the overhead charges are intended to cover, (b) the general procedure for determining th
in rates for different types of construction, and (0 whether the overhead is directly or indirectly assigned.
2. Show below the computation ofallowance for funds used during construction rates, in accordance with the provisions of Electric Plant instructions 3( l7) of the U.S. ol
A.
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.
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Construction cosrs with a direct relationship to new construction and capital replacement activities tha
cannot be clearly identified with spocific projecs are charged to overhead pools. The established
pools are:
Gas Distribution Construction Engineering and Supervision-WA/It
Gas Distribution Construction Engineering and Supervision-OR/CA
Pool costs are allocated to direct Foject costs, excluding AFUDC, based on a percentage rate. Each pool
percentage rate is calculated separarcly and applied only to the related pool balance for allocatior
Allowance for funds used during coostruction is calculated system wide using a rate that is equivalent tr
the allowed rate of return in the company's primary state jurisdiction
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COMPUTATION OF ALLOWANCE FOR FUNDS USED DURING CONSIRUCTION RATES
For line l(5), column (d) below, enter the rate granted in the last rate proceeding. Ifsuch is not available, use the averag
rate earned durins the Drecedins three vean I
l. Components of Formula (Derived from actual book balances and actual cost rates)
LIIIE
No.
'liile
(a)
Amounl
(b)
uaprtallzauon
Ratio(Percent)
Ic)
LOS[ Kate
Percentage
(d)
Average Shon-Term Debt &
Comoutation of Allowance text
r08,995,000 ffiwre@ffies
-ons-Term Debt ) I,175,715,m0 5'.739%8.70
4 )refened Stock 135,000,000 6.@%6.73
lommon Equity 734,318,7r0 35.91%l l.l6
Iotal Capiulization 2,0/.5,033,1rO 100.00 t.oo%
{verage Construction Work in
lrogress Balance
w 49,n2,031
2. Gross Rate for Borrowed Funds SDSs(-) + d(-)(l-
-)I0.00
w D+P+C w
3. Rate for Other Funds s PCItp(-) + c(-)lD+P+C D+P+C Ilr
w
0.00
Weighted Average Rate Actually Used for the Year:
a. Rate for Borrowed Funds -
b. Rate for Other Funds -
5.87
3.16 I
218
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Name of Respondent
Avista Corporation
firis Reoort Is:(1)E An original
(2)E AResubmission
Date of Report
(Mo, Da, Yr)
Apit28,2O02
Year of Report
Dec. 31,2001
ACCUMIILATED PROVISION FOR DEPRECIATION OF GAS UTILITY PLANT (Account 108)
l. Explain in a footnote any important adjustments
during year.
2. Explain in a footnote any difference between the arnount
for book costof plantretired, line ll, column(c), andthat
reported for gas plant in service, pages2M-209, column (d),
excluding retirements of non-depreciable property.
3. The provisions of Account 108 in the Uniform System
of Accounts require that retirenpnts of depreciable plant
be recorded when such plant is removed from service. If
the respondent has a significant arnount of plant retired at
year end which has not beer recorded and/or classil'ied to
the various reserve functional classifications, make
preliminary closing entries to tentatively functionalize the
bookcost oftheplantretired. In addition, include all costs
included in retirement work in progress at year end in the
appropriate functional classifications.
4. Show separately interest credits uoder a sinking fund
or similar rnethod of depreciation accounting.
Section A. Balances and Chanees Durins Year
Line
No.
Item
(a)
Total
(c+d+e)
(ht
Gas Plant in
Service
(c)
Gas Plant Held
tbr Future Use
(d)
Gas Plant Leased
to Othcls
(e)
Balance Besinninq of Year 146.391.488 146.391.488
2 Deoreciation Provisions for Year.
Charsed to
3 (40i\ f)enrcciation Ernense 12.594.9tr t2.594.9tl
4 (413) Exo. of Gas PIt. I-eas. to Others
5 Transnortation Exoenses-Clearino 264.243 264.U3
6 Other Clearine Accounts
7 Other Accounts (Soecifu) :
8 Transfer to cornrnon (transporation clear)0
9 TOTAL Deprec. Prov. for Year
(Enter Total of lines 3 thru 8)
12.859.154 12.859.t54
l0 Net Charses for Plant Retired:
ll Book Cost of Plant Retired (1.933.859 (l.933.8591
t2 Cost of Removal /L68.499 (168.499
t3 Salvase (Credit)77.463 77.463
t4
l5
TOTAL Net Chrgs. for Plant Ret.
@nterTotalof lines 1l ttlru 13)
Other Dcbit or Credit Items (Describe)
(2.024.89s)(2,024,895)
l6
t7 Balance End of Year @nter
Total of lines l. 9, 14, 15, and 16)157.225.747 r57.225.747 (C
Section B. Balances at End of Year According to Functional Classifications
l8 Production-Manufactured Gas I13.501 l13.501
l9 hod. and Gatherins-Nahrral Gas
20 hoducts Extraction-Natural Gas
21 Underground Gas Storase 8.204.235 8.204.235
22 Other Storaee Plant
23 Base Load LNG Term and Proc. Plt.
24 Iransmission 2.461.601 2.461,601
25 Distribution 140.638.549 r40.638.549
26 General 5.807.86r 5.807.861
27 TOTAL @nter Total of lines 18
thru 26)
157,225,747 157,225,747 t C
FERC FORM NO.2 (ED. 12.87)Page2l9
Name ol Respondert
Avisla Corporation
thrs Reoort ls:fi nh odstnar
I n Resubmission
Jare (n Hepon
'tvb, Da, Yr)
\pril 30, 2002
tearot Hepon
)ec.31, a)01
GAS STORED (ACCOUNT 117 .1. 117 .2. 117 .3. 117.4. 164.1. 164.2. AND 164.3)
I ll durdng th8 year adiuslments were made to lhe stored gas inventory
reported in columns (d), (f), (9), and (h) (such as lo conec't cumulativo
inaccuracies ol gas measurements), explain in a lootnote lhe reason lor
th€ adiustments, lhe Dth and dollar amount ol adjuslmenl, and account
cfErged or crediled.
2 Repon in column (e) all encroachmenls dJrirE lhe year upon th6 volumes
designated as base gas, column (b), and system balarcing gas, column
( c ), and gas property recordable in the plant accounis.
3 Stale in a lootnots lll€ basis ol segregation o, inventory betwe€n
currenl and noncurr€nl protions. Also stale in a lootnote the
method used lo report storage (1.e. lixed asset method or
invenlory method).
-ln Description
(Accourn
1 17.1 )
(Accounl
117.2)
Noncunent
(Account 117.3)
tdl
(Accounl
117.4)
Cur6nl
(Account t04.1)
LNG
(Account tan.2
LNG
(Account 1o{.3)Total
Salance al Beoinnim ol Year 5.703.917t 636.1 4(6.340.063
2 3* Delivered to SloEoe 211.6.833.580
3 sas Wilhdrawn lrom Storaoa 8.1 57_44!215.621 8.373-066
rer Debits and Crcdils 0
5 alance al End ol Year 6.t68.381 632.1 9r 6,800-.577
1 .6t 9.79:242.441 1.902.280
7 Amour{ Per DekatfEm s3 8081 $2 23AO $3 5750
8 State basrs ol segregalaon ol iNenlory bgtwe€n curenl and noncurTenl portiorB:
Sunenl porlion is gas e)e€cled to b€ sold wittin a 24 monih period. All olh6r gas is considered mn-ornent.
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IPage22OFERC FORM NO. 2 (ED. 12-96)
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(Mo, Da, Yr)
April 30,2002
Thb reporl is:
(1) [xl An O]isinal
(2) t lA Resubmission
L Give a bdd deso$lin md slat6 tha bcalim ol ncn-(0itypropedy hdtdod h Accout l2l.
. DeslInab wih a dotble aste.isk any pw6{ty whidl b loased to anohor canpany. $ats ndnc d Lo€seo fid wholh€{ Lessee b an assochtad ofirpany.
FunS$ paflxrhE (delai{s) concemhg sales, purdrasas, o, tranders of NmUility Prcperty turhg tB y.ar
. List separatey at preefiy pra/ioudy da,otsd fo ptilic seruico erd giv6 dds ottlandet to Aooot tt 121, tlonulilty PDpsrty.
. Minor t€ms (5% d he Balarcs al the End ot he Year, lor Accol,nt 1 21 or $ l 00,000, wfiadla€r b l€ss) may be groped by (1 ) prwiotay d.,vobd lo Fblic
0he,l4), or (2) oher nmulrv prcperty (hs 45).
$174,@3
$656,033
$980,939
$152,864
$180,941
$589,81 9
$41 9,1 32
$o
$6q6s5
$6o,695
Drive (2)
Sub Property (3)
SeMce C€nler Prop€rty (4)
Service Cenler (5)
Park Prop€rty (6)
(1 ) Previously dovded lo public service; trarslened lo Account 1 21, April 1 979.
(2) Trans,lerred to Accounl 1 21 , Decenber 1 986.
(3) Transl€rrod to Aocount 1 21 , Dec8rnb€r I 99.l .
(4) Trans{erred to Accounl I 21 , June 1 995.
(5) Proviorrsly devoted to public seIvice; translenBd lo Account 1 21, April 1 999.
(6) Acquired io Account 121, May 2ool.
(7) Acquir€d to Acoorrnl 1 21 , September 2001 .
(8) Trans'lerrod lo Accounl '121 , December 1991.
Minor llems Previously De\roled to Public Service
$1 74,s23
656,O33
980,9S'
152,864
I 80,941
0
0
2,144,800
60,695
60,695
1
2
3
4
5
6
7
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9
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11
't2
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
3t
e,
33g
35
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37
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39
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41
42
43
4
45
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Page 221 Next Page is 224
Name or Hesponoenl
Avista Corp.
I nrs Heoon ts:(1) ElAn orisinal(2) ;-1A Resubmission
Date of Reoort(Mo, Da, Yi)
0413012002
Year of Report
Dec.31, 2001
INVESTMENTS IN SUBSIDIARY COMPANIES (Account 123.
1 . Report below investments in Accounts 123.1 , investrnents in Subsidiary Companies.
2. Provide a subheading lor each company and List there under the information called for below. Sub - TOTAL by company and give a TOTAL in
columns (e),(0,(S) and (h)
(a) lnvestment in Securities - List and describe each security owned. For bonds give also principal arnount, date ol issue, maturity and interest rate.
(b) lnvestment Advances - Report separately the amounts ol loans or investment advances which are subject to repayment, but which are not subject to
current settlement. With respect to each advance show whether the advance is a note or open a@ount. List each note giving date ol issuance, maturity
date, and specifying whether note is a renewal.
3. Report separately the equity in undistributed subsidiary earnings since acquisition. The TOTAL in column (e) should equal the amount entered lor
Account 418.1.
-tnt
No.
uescnpflon oI lnvestmenl
(a)
Date Acquired
(b)
Date Of
't$''"
Amounr oI rnveslmenl aIBeoinnino of Year- {d)-
1
2 Avista Capital - Common Stock 1997 184,251 ,609
3 Avista Capital - Equity in Earnings 177,585,192
4
5
6
7
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11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
u
35
36
37
38
39
40
41
42 Iotal Cost of Account 123.1 $ 0l TOTAL 361,836,801
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tFERC FORM NO.2 (ED. t2€9)Page 224
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Name ol Hesponoenl
Avista Corp.
This Reoort ls:(1) 5]ln orisinat(2) f-lA Resubmission
Date of Reoort(Mo, Da, Yi)
0413012002
Year or Hepon
Dec.31, 2001
INVESTMENTS IN SUBSIDIARY COMPANIES (Account 123.1) (Continued)
4. For any securities, notes, or accounts that were pledged designate such securities, notes, or accounts in a footnote, and state the name o, pledgee
and purpose of the pledge.
5. lf Commission approval was required for any advance made or security acquired, designate such tact in a footnote and give name of Commission,
date of authorization, and case or docket number.
6. Report column (f) interest and dividend revenues form investments, including such revenues lorm securities disposed of during the year.
7. ln column (h) report lor each investment disposed ol during the year, the gain or loss represented by the ditference between cost of the investment (or
the other amount at which canied in the books of account if dilterence from cost) and the selling price thereof, not including interest adjustment includible
in column (f).
8. Report on Line 42, column (a) the TOTAL cost of Account'123.1
trquly llr ouusrulary
Eaminqs,of Year
Hevenues ror Year
(f)End pffear
(iatn or Loss rrom rnvesrmenr
Disoosed of' (h)
Line
No.
1
184,251,609 2
-1 1 ,090,218 166,494,974 3
4
5
6
7
8
I
10
11
12
13
14
15
16
17
18
19
20
2'.1
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
-11,090,218 350,746,583 42
FERC FORM NO.2 (ED. 12€9)Page 225
Name ot Respondent
Avista Corp.
This Reoort ls:(1) Eln orisinal(2) nA Resubmission
Date of Reoort(Mo, Da, Yi)
0413012002
Year oI Hepon
Dec.31 , 2oo1
OTHER REGULATORY ASSETS (Account 1 82.3)
1. Report below the particulars (details) called lor concerning other regulatory assets which are created through the rate making 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 (5olo of the Balance at End of Year for Account 182.3 or amounts less than $50,000, whichever is less) may be grouped
by classes.
Line
No.
Description and Purpose ol
Other Flegulatory Assets
(a)
Debits
(b)
CREDITS Balance at
End of Year
(e)
AU(jUUI II
Charged
(c)
Amount
(d)
FAS 106 - Accounting for Post Retirement 926.65 472,752 5,200,272
2 Benefits, other than Pensions (182.30)
3
4 FAS 109 - Acchg for lncome Taxes Util Prop 283.17,18 7,712,979 149,397,423
C (182.31 & 1e2s2)
6
7 More Options Power Supply (MOPS) - WA (182.34 )381,888 407.44 381,888
I More Options Power Supply (MOPS) - lD (182.34)88,776 407.44 88,776
c WA Power Deterral Pre2OO2 Settle (182.35)132,006,255 186.28129 132,006,255
1C Hamilton Street Bridge - WA (182.39 028)500,868 407.39 500,868
't1 Hamilton Street Bridge -- lD (182.39 038)246,720 407.39 246,720
12 FAS 133 Reg Asset (182.74)157,528,897 186 & 253 157,528,897
13
14 Oregon DSM Long-Term Regulatory Asset vanous 49,589 -315,424
15
't6
17
't8
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
4il
44 TOTAL 290,753,404 8,235,320 445,035,675
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tFEHC FORM NO.2 (ED. 12-94)Page 232
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Name of Respondent
Avisla Corp.
Ihis report is:
Xl An Original
lA Resubmission
Dale of Report
(Mo, Da, Yr)
April 30,2002
Year Ending
Dec. 31, 2001
MISCELLANEOUS DEFERRED DEBITS TACCOUNT 186)
1. Report below the details called lor conceming miscellaneous 2. For any delerred debit being amortized, show period ol
deferred debits amortization in column (a).
3. Mino
Line
No.
Descdption ol Miscellaneous
Deferred Debits
(a)
Balance at
Beginning
of Year
/hl
Debits
(c)
CREDITS Balance at
End of Year
(f)
Account
Charged
. (d)
Amount
(el
1
2
3
4
5
6
7
8I
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
45
46
474
49
Regulatory Deferrals-WA
Colstrip Common Fac.
WA Deterred Power Cosls
WA Accumulated Surcharge Am
Regulatory Deferals-lD
Colstrip Common Fac.
ldaho Deferred Power
lD Accumulated Surcharge Am
Payroll Accrual
Regulatory Delenals-OR
OR State Misc. Deferral
Misc. Enor Suspense
Joint Prolects
Centralia Operating Pmts
WPI-ID Terminated Elec Pur.
ferm Elec Purch Cont
Unamortized A,/R Sale
Bank Recon Suspense
Mark to Market Delened Debit
Nez Perce Settlement
DES Contract Amortization
Reg Low lnclme Gas Wzn
UPRR Permit Conv
Ortho Business Activity
Canadian GST Tax
Nez Perce Forest
Electric Network
Misc. W.O. under $50,000
Subsidiaru Billinos
666,540
34,579,863
0
1,413,468
0
0
1,164,987
(163,3s91
(473,6361
525,000
1,567,974
1,128,879
159,936
(301,714)
0
798,940
489,379
507,469
0
55,s'12
188,085
0
0
311,966
) t oaAT
75,046,296
't,278,533
163,359
219,077
109,566
38,747
1,889,288
171,191
53,430
77,595
4,970
qna 7al
406
i55
t06
357
i57
i56
108
tat
taf
31,740
26,347,893
67,308
2,901,409
391,993
1128879
18,580
175,029
56,634
16,612
39,934
634,800
8,231,970
0
1,346,160
75,046,296
(2,901,409)
2,443,520
(2s4,5s9)
525,000
1,175,981
0
269,502
(262,967)
1,889,288
780,360
314,350
450,835
171,191
38,900
1 48,151"
53,430
77,595
316,936
2.930.1 18
0
scellaneous Work in Prooress w;*f,.ry,ffi
rOTAL 64-351 .53t 109.424.21t
FERC FORM NO.2 (ED.12-96)Page 233
Name of Respondent
Avista Corp.
[his report is:
Xl An Original
]A Resubmission
Date of Reporl
(Mo, Da, Yr)
April 30,2002
Year Ending
Dec. 31, 2001
MISCELLANEOUS DEFERBED DEBITS (ACCOUNT 186)
1. Report below the details called lor conceming miscellaneous
delened debits
2. For any delerred debit being amortized, show period of
amortization in column (a).
Line
No.
Description ot Miscellaneous
Delerred Debits
lal
Balance at
Beginning
of Year
/hl
Debitr
{cl
Balance at
End of Year
(f)
Account
Charged
td)
Amount
(e)
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
*!
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
lonservation
)R Gas Comm Consvt
)regon Shower Head
)regon Comm Gas Eff
,VPNG HE Wtr Htrs-OR
I/PNG HE Furnaces
A/PNG CA RES UI.P
I/PNG OR Res Low 1
tegulalory-Sched-67
leg-Water Heat Conv
leg-SpaceMater Con
teg-Elec Comm/lnd
leg-Gas Wzn Res
leg-Ul Elec/Gas
teg-Elec Manuf Home
ieg-Comm/lnd Gas
ieg-Gas Res Appl Ef
leg-Gas Res Showerhead
leg Elect Res Wzn
leg Ul Elec Wzn
leg Elec Res Shwr
leg C/l Elec Fuel
leg Gas A.E. Wtr
Shareholder Litigation
Sandpoint DSR - PPL
Uops Tariff
Vlops ll
79,117
216,043
74,291
226,009
1,257,618
0
142,880
296,550
1,490,361
6,175,295
1,012,541
1,492,159
497,684
431,747
175,018
2,026,972
247,705
76,164
124,138
13/,612
297,878
33i!,544
262,726
1,080,514
352,'t07
188.404
24,718
13,871
22,865
209,930
53,859
908
var
908
908
908
908
908
908
908
908
908
908
908
908
908
908
908
var
908
var
var
31 ,908
1 69,899
33,066
152,358
704,561
't't6,374
153,145
49,737
48,984
19,599
208,179
55,047
8,643
14,099
37,937
34,222
74134
262,397
113,387
352,107
188,404
103,835
1 84,1 35
88,162
248,874
1,467,548
(169,899)
196,739
263,484
1,338,003
5,470,734
896,1 67
1 ,339,014
447,947
382,763
155,41 I
1 ,818,793
192,658
67,521
1 10,039
96,675
263,656
259,414
329
967,127
0
0
Miscellaneous Work in Prooress
TOTAL 64.351.530 109.424.2'tt
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FERC FORM NO.2 (ED.12-96)Page 233.1
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Name ol Respondenl
Avista Corp.
lhis report is:
Xl An Original
I A Resubmission
Date ot Report
(Mo, Da, Y)
April 30,2002
Year Ending
Dec. 31, 2001
MISCELLANEOUS DEFERRED DEBITS (ACCOUNT 186)
1. Report below the details called lor conceming miscellaneous 2. For any deferred debit being amortized, show period o{
delerred debits amortization in column (a).
3. Minor items (less than $250,000
Line
No.
Description o, Miscellaneous
Deferred Debits
Ia)
Balance at
Beginning
ol Year
{h)
Debitr
(cl
CREDITS Balance at
End of Year
(n
Account
Charged. {d)
Amount
{e)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
't7
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
45
46
47
48
49
Gas Plant
Hamilton Street Bridge Site
Easy Pay Billing CS
Lake CDA lssues
1,070,352
(608,1201
1s7,545
76,624
75,445
!af 962,211 108,137
(531,496)
232,990
Vliscellaneous Work in Prooress
rOTAL 64.351.530 109.424.21(
FERC FORM NO.2 (ED.12-96)Page 233.2
Name of Respondent
Avista Corp
This Reoort Is:(l) E An original
(2) f] AResubmission
Date of Report
(M, D, Y)
April30, 2002
Year of Report
Dec. 31, 2001
ACCI.]MULATED DEFERRED INCOME TAXES (ACCOUNT 190)
l. Report the information called for below concerning the 2. At Other (Specify), include deferrals relating to
respondent's accounting for deferred income taxes.other income and deductions.
3. At lines 4 and 6, add rows as necessary to report
all data. Number the additional rows in sequence
4.01.4.02. etc. and 6.01, 6.02, etc.
Line
No.
Account Subdivisions
(a)
Balance at
Beginning
of Year
(b)
CHANGES DURING YEAR
Amounts
Debited to
Account 410.1
k)
Amounts
Credited to
Account4ll.l
(d)
I Account 190
2 Electric 41.318.988 20.506.340 1.843.1 l5
3 Gas 1.709.352 3.037.791 (29.247'
3.01
Other (Define)4
4.01
4.O2
5 Iotal (Total of lines 2 thru 4)43.028340 235,44.13t 1.813.868
6 Other (Soecifv)r5.619.136 (800.054)913,858
6.01
6.O2
7 IOTAL Account 190 Ootal of lines 5 thru 6)58,647,O6 22:tU,Vt7 2,727,726
8 Classification of TOTAL
9 Federal Income Tax s8s47.{16 22J44.W7 2.727.726
10 State Income Tax
l1 Local Income Tax
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FERC FORM NO.2 (12-98)Page234
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Name ofRespondent
Avista Corp
fhis Reoort Is:
(l)EAn original
(2)!A Resubmission
Date of Report
(Mo, Da, Yr)
April30, 2002
Year of Report
Dec.31,2001
ACCIJMULATED DEFERRED INCOME TAXES (ACCOUNT 190) (Continued)
4. If more space is needed, use separate pages
as required.
5. In the space provided below, identify by amount
and classification, significant items for which
deferred taxes are being provided. Indicate
insignificant amounts listed under "Other."
CHANGES DURING YEAR ADruSTMENTS
Balance at
End of Year
(k)
Line
No.
Amounts
Debited to
Account 410.2
(e)
Amounts
Credited to
Account 411.2
(fl
Debits Credits
Acct. No.
(s)
Amount
(h)
Acct. No.
(i)
Amount
(i)
118,451 23.736 283 t2-977-884 9.583.164 2
135.226 0 28i 585,653 254 53,100 (9603s9 3
0 3.01
0 4
0 4.01
0 4.O2
253.ff|7 23JX sE5'6s3 13.030.984 8.622.805 5
(287.226 (&-428 23C 371.328 17s27.174 6
253 494-963 494,963 6.01
0 6.02
(s3"5491 (4A,692)145t,944 13,030,984 27,044,942 '7
(33.s491 @0.692'1.45r-944 13.030.984 27.044.942 9
l0
II
FERC FORM NO.2 (12-98)Page235
Name or Hesponoenr
Avista Corp.
This Reoort ls:(1) plAn Orlginat(2) f''lA Resubmission
Date of Reoort(Mo, Da, Yi)
o4lfilnoz
Year of Report
Dec. 31, 2001
GAPITAL STOCKS (Account 201 and 204)
1. Report below the particulars (details) called tor concerning common and preferred stock at end of year, distingruishing separate
series of any general class. Show separate totals for common and preferred stock. lf information to meet the stock exchange reporting
requirement outlined in column (a) is available from the SEC 10-K Report Form filing, a specific reference to report form (i.e., year and
company title) may be reported in column (a) provided the fiscal years for both the 10-K report and this report are compatible.
2. Entries in column (b) should represent the number of shares authorized by the articles of incorporation as amended to end of year.
-tne
No.
Class and Series of Stock and
Name of Stock Series
(a)
Number of shares
Authorized by Charter
(b)
Par or Strated
Value per share
(c)
Call Price at
End of Year
(d)
1 Account 201 - Common Stock lssued
2 No Par Value 200,000,000
3
4 TOTAL_COM 200,000,000
5
6
Account 204 - Prefened Stock lssued 10,000,000
c No Par $6.25 Series K 100.00
1C Cumulative
11
12
l?TOTAL-PRE 't0,000,000
14
15
16
't7
18
19
20
2'l
22
23
24
25
26
27
28
29
30
31
32
3ri,
34
35
36
37
38
39
N
41
42
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IFERC FORM NO.2 (EO.12-91)Page 25O
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Name of Respondent
Avista Corp.
This ReDort ls:(1) EIAn orisinal(2) nA Resubmission
Date ot Report(Mo, Da, Yi)
o413012002
Year of Report
Dec.31, 2001
CAPITAL STOCKS (Account 20'l and 204) (Continued)
3. Give particulars (details) conceming shares of any class and series of stock authorized to be issued by a regulatory commission
which have not yet been issued.
4. The identilication of each class of preferred stock should show the dividend rate and whether the dividends are cumulative or
non-cumulative.
5. State in a footnote if any capital stock which has been nominally issued is nominally outslanding at end of year.
Give particulars (details) in column (a) of any nominally issued capital stock, reacquired stock, or stock in sinking and other lunds which
is pledged, stating name of pledgee and purposes of pledge.
OUTSTANDING PER BALANCE SHEET(Total amount outstanding without reduction
for amounts held by respondent)
HELD BY RESPONDENT Line
No.AS REACQUIRED STOCK (Account 217)IN SINKING AND OTHER FUNDS
snares(e)Amount(0 !;nares(o)UOSI(h)rares(D
Amount(i)
1
47,635,409 617,737,000 2
3
47,635,409 617.737.000 4
5
6
7
8
350,000 35.000.000 o
10
11
't2
350,000 35,000,000 13
'14
l5
16
17
18
19
20
21
22
23
24
25
26
27
28
29
.30
31
32
JJ
34
35
36
37
38
39
40
41
42
FERC FORM NO.2t (ED. 12-88)Page 251
Name of Respondent
Avista Corp.
(1) E(2) r
ort ls:
An Original
A Resubmission
Date of Reoort(Mo, Da, Yi)
o4130/2002
Year or Hepon
Dec.31, 2001
CAFITAL STOCK EXFENSE (ACCOUNI 214)
1. Report the balance at end of the year of discount on capital stock for each class and series of capital stock.
2. lt any change o@urred during the year in the balance in respect to any class or series of stock, aflach a statemenl giving particulars
(details) of the change. State the reason for any charge-off of capitalstock expense and specify the account charged.
Llne
No.
ulass ano DanE S (,t Dtoct(
(a)
Balance aI Eno oI Year
(b)
1 Common Stoc* - Public lssue 8,314,875
2 Shares issued under provisions ol Respondant's Dividend Reinvestment and Stock Purchase Plan 442,144
3 Shares issued under provisions of Bespondant's Employee Stock Purchase Plan 74.83€
4 Oommon Stock - 401k 2't5,137
5 Sommon Stock - Periodic Offering Program (POP)599,768
t 86.95 Prelened Stock, Series K 2,089,391
7 Sommon Stock Split 187,872
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22 TOTAL 11,924,026
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tFERC FORM NO.2 (ED.12€7)Page 254b
This Page Intentionally Left Blank
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Name of Respondent
Avista Corp.
I nrs HeDon ts:(1) 5]Rn orisinat(2) f--'lAResubmission
Date ol Reporl(Mo, Da, Yr)
o413012002
Year of Report
Dec. 31, 2001
LONG-TERM DEBT (Account 221 , 222, 223 and 224)
1. Report by balance sheet a@ount the particulars (details) conceming long-term debt included in Accounts 221 ,-Bonds,222,
Reacquired Bonds, 223, Advances from Associated Companies, and 224, Olhet long-Term Debt.
2. ln column (a), for new issues, give Commission authorization numbers and dates.
3. For bonds assumed by the respondent, include in column (a) the name of the issuing company as well as a description of the bonds.
4. For advances from Associated Companies, report separately advances on notes and advances on open accounts. Designate
demand notes as such. lnclude in column (a) names of associated companies from which advances were received.
5. For receivers, certificates, show in column (a) the name of the court -and date of court order under which such certificates were
issued.
6. ln column (b) show the principal amount of bonds or other long-term debt originally issued.
7. ln column (c) show the expense, premium or discount with respect to the amount of bonds or other long-term debt originally issued.
8. For column (c) the total expenses should be listed first for each issuance, then the amount of premium (in parentheses) or discount.
lndicate the premium or discount with a notation, such as (P) or (D). The expenses, premium or discount should not be netted.
9. Furnish in a footnote particulars (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.
-tne
No.
Class and Series of Obligation, Coupon Rate
(For new issue, give commission Authorization numbers and dates)
(a)
Principal Amounl
Of Debt issued
(b)
Total expense,
Premium or Discount
(c)
1 Accl..221 - Bonds:
2 Secured Medium Term Notes $650,000,000 4,130.555
3 (Premium)50,220
4
5 Pollution Control Revenue Bonds:
6 60lo Series due 2023 4,100,000 345,385
7 Colstrip 1999A due 2032 66,700,000 2,182,462
8 (Premium)1,334,000
9 Colstrip 19998 due 2034 17,000,000 565,288
10 (Premium)340,000
t1
12 SUBTOTAL 87,800,000 8,947,910
13
14 AccL222 - Reacquired Bonds
15
16 Acct. 223 - Advances from Associated Companies
17
18 Acd.224 - Other Long-term Debt
19
20 Notes Payable - Banks (local) $220,000,000 55,000,000 2,844.500
21
22 Commercial Paper
23
24 Unsecured Senior Notes 400,000,00(9,004,512
25 (Discount)2,716,000
26
27 Medium Term Notes $1,000,000,000 6,1 97.873
28 (Premium)70,000
29 Long Term Curent
30 Notes Payable to Various Parties
31 Prelerred Trust Securities 60.000.000 5,960,160
32 50,000,000 3,633,783
33 TOTAL 652,800,00(39,374,738
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IFERC FORM NO. 2 (ED. t2-96)Page 256
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Name of Respondent
Avista Corp.
I nrs Heoon ts:(1) 5]Rn originat(2) f-lA Resubmission
Date of Reoort(Mo, Da, Yi)
0413012002
Year ol Report
Dec.31, 2001
LONG-TERM DEBT (Account221,222,223 and 224) (Continued)
10. ldentify separate undisposed amounts applicable to issues which were redeemed in prior years.
11. Explain any debits and credits other than debited to Account 428, Amortization and Expense, or credited to Account 429, Premium
on Debt - Credit.
12. ln a footnote, give explanatory (details) for Accounts 223 and 224 ol nel 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) principle repaid
during year. Give Commission authorization numbers and dates.
13. lf the respondent has pledged any of its long-lerm debt securities give particulars (details) in a footnote including name of pledgee
and purpose of the pledge.
14. lf the respondenl has any long-term debt securities which have been nominally issued and are nominally outstanding at end of
year, describe such securities in a footnote.
15. lf interest expense was incurred during the year on any obligations retired or reacquired before end of year, include such interest
expense in column (i). Explain in a footnote any difference between the total of column (i) and the total of Account 427, interest on
Long-Term Debt and Account 430, lnterest on Debt to Associated Companies.
16. Give particulars (details) concerning any long-term debt authorized by a regulatory commission but not yet issued.
Nominal Date
of lssue
(d)
Date of
Maturity
(e)
AMORTIZATION PERIOD vutt'taIt(JtItuffotal amount outstandino without' reduction for amounts h-eld byreselgdent)
lnterest for Year
Amount
(i)
-ine
No.Date From
(f)
Date To
(o)
1
313,500,00(14,987,643 2
3
4
5
1A1A19U 1?,0112014 12t18/1984 14oil2014 4,100,00(246,000 6
9/01/1999 1010112032 9/01/1999 10101t2032 66,700,00(2,288,10(7
8
9/01/1999 310112034 9/01/1999 3101t2034 17,000,00(583,17(I
10
't1
401,300.00(1 8,104,92t 12
13
14
15
16
17
18
1
55,000,00(7.058,24!20
21
22
23
400,000,00(29,033,33:24
25
26
376,000,00(7,473,O6t 27
28
29
30
)112311997 0111512037 01/3't/1997 1?/3112036 60,000,00(4.725.00C 31
06/03/1 997 0610112037 06/30/1997 0513112037 40,000,00(2.883,89S 32
1,332,300,00(69,278,469 33
FERC FORM NO.2 (ED.12-96)Page 257
Name ol Respondent
Avista Corp.
This Reoort ls:(1) 5]nn Originat(2) nA Resubmission
Date of Report(Mo, Da, Yr)
0413012002
Year or Hepon
Dec.31, 2OO1
RECONCILIATION OF REPORTED NET INCOME WITH TAXABLE INCOME FOR FEDERAL INCOME TAXES
1. Report the reconciliation of reported net income lor the year with taxable income used in computing Federal income tax acsruals and show
mmputation of such tax accruals. lnclude in the reconciliation, as far as practicable, the same detail as furnished on Schedule M-'l of the tax return for
the year. Submit a reconciliation even though there is no taxable income tor the year. lndicate clearly the nature of each reconciling amount.
2. ll the utility is a member ol a group which files a consolidated Federal tax retum, reconcile reported net income with taxable net income as il a
separate retum were to be field, indicating, however, intercompany amounts to be eliminated in such a consolidated return. State names of group
member, tax assigned to each group member, and basis of allocation, assignment, or sharing of the consolidated tax among the group members.
3. A substitute page, designed to meet a particular need of a company, may be us€d as Long as the data is consistent and meets the requirements of
the above instructions. For electronic reporting purposes complete Line 27 and provide the substitute Page in the context ol a footnote.
LITIg
No.
rauEuraas tuelals,(a)
AITIOUTIT
(b)
1 {et lncome for the Year (Page 117)12,155.766
2 filffii;il+#3
4 faxable lncome Not Repoded on Books
5 7,933.609
6
7
8
I )eductions Recorded on Books Not Deducted for Return
10 :ederal lncome Tax -81,239,264
11 )eferred lncome Tax 107,213,233
12 nvestment Tax Credit -49,308
13 )ther 38,714,234
14 ncome Recorded on Books Not lncluded in Return
15 iqulty in Sub Eamings (lncome) / Loss 11,090,218
16 Jther -233,345,831
17
18
19 )educlions on Return Not Charged Against Book lncome
20 -94,584,84'l
21
22
23
24
25
26
27 :ederal Tax Net lncome .232,112,184
28 Show Computation of Tax:-81,239.2il
29
30
31
32 fotal Federal lncome Tax Accrual - Current Year -81,239,264
33
34
35
36
37
38
39
40
41
42
43
M
261
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This Page Intentionally Left Blank
Name oI Hesponoenl
Avista Corp.
This
(1)
(21
:leDort ls:
SllAn orisinat
nA Resubmission
uale oI Hepon(Mo, Da, Yr)
o4BOl2002
Year ol Report
Dec.31, 2001
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR
1. Give particulars (details) of the combined prepaid and accrued tax accounts and show the total taxes charged to operationsand other accounts during
the year. Do not include gasoline and other sales traxes which have been charged to the accounts to which the taxed material was charged. ll the
actual, or estimated amounts of such taxes are know, show the amounts in a lootnote and designate whether estimated or aclual amounts.
2. lnclude on this page, taxes paid during the year and charged direct to final accounls, (not charged to prepaid or accrued tiaxes.)
Enter the amounts in both columns (d) and (e). The balancing of this page is not aftected by the inclusion ot these taxes.
3. lnclude 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 proportions of prepaid taxes ciargeable to current year, and (c) taxes paid and charged direct to operalions or accounts other
than accrued and prepaid l,ax a@ounts.
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.
-tItI,
No.
Kind of Tax
(See instruction 5)
(a)
BALANCE AT BEGINNING OF YEAR I AIEICharoed
Rry*n(d)
I dIESPaid
q8l?s
(e)
Adjust-
ments
(f)
I axes Accrueo(Account 236)(b)
rreoaE taxes(lnclude in Account 165)
1 FEDERAL:
lncome Tax (1 &5X1 989-1 995)-26,859 -155,480
lnoome Tax (1&5X1996)-s60,580 155,480
lncome Tax (1&5X1997)-1,941,632 -4,409,931 -424,634
lncome Tax (1&5)(1998)-1,3ri!6,400 -275,395 155,007
lncome Tax (1&5X1999)-2,034,198 -199,400
lncome Tax 2000 -22.040.812 -18,'t 57,463 3,513,048
€lncome Tax 2001 -81,243,527 -50,850,745
t Umemployment 294,765 -294,765
1C Unemployment lns 2001 6,640 1,737
11 FrcA (1998-2000)-105,790 105,790
12 F]CA (2001)8,812,938 8,836,795
13 Retained Eamings-ESOP -408,268
1A Retained Eamings-ESOP -329,623
15 Retained Eamings-ESOP -147,175
16 Retained Eamings-ESOP -419.065
17 Retained Eamings-ESOP -141,Oze
l8 Motor Vehicle (1999)
t9 Motor Vehide (2000)22,943 -22,94i
2C Total Federal -29,032,694 -72,776,894 -64.858,476 3,044,021
21
22 STATE OF WASHINGTON:
23 Property Tax (1 998-1 999X9)165,738 -165,73t
24 Propefi Tax 2000 9,021,638 -747,00t 8,249,973 461,001
25 Property Tax 2001 8,954,82€
2A Excise Tax (1998-1999)263,695 -263,695
27 Exciso Tax (2000)764,555 292,69!1,O57,247
28 Excise Tax (2001)15,800,2't€13,667,691
29 Gas Surcharge 52S 9,263
30 Unemployment lns.-27,386 2738e
31 Unemployment lns. (2001 )669,17,(666,748
32 Mobr Vehicle (2001)3.55i 3,557
33 Total Washington 10,'t88,240 24,571,942 23,654,479 461,001
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35 STATE OF IDAHO:
36 lncome Tax (1996)(4&5)150,000 118,671 -31,329
37 lncome Tax (1997X4&5)150,000
38 lncome Tax (1998X4&5)388,736 316
eo lncome Tax (1999X4&5)-9,516 472,847
4A lncome Tax 2000 -1,276,224 -321,370 807,902
41 TOTAL -14,177,OT7 -22.844.O92 11,482,141 5,309,084
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IFERC FORM No.2 (ED. t2-96) page 262
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Name oI Hesponoent
Avista Corp.
This Reoort ls:(1) $Rn Original(21 nA Resubmission
uale oI Heoon(Mo, Da, Yi)
o4t30t2002
Year oT Hepon
Dec. 31,2001
TAXES AGCHUED, PREPAID AND CHARGED DURING YEAR (Continued)
5. lf any tax (exclude Federal and Stato income taxes)- covers more then one year, show the required inlormation separately lor each tax year,
identifying the year in column (a).
6. Enter all adjustments of the accrued and prepaid trax accounts in column (f) and explain each adjustment in a foot- note. 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. Report in columns (i) through (l) how the tiaxes were distributed. Report in column (l) only the amounts charged to Accounts 408.1 and 409.1
pertaining to electric operations. Report in column (l) the amounts charged to Accounts 408.1 and 109.1 pertaining to other utility departments and
amounls charged to Accounts 408.2 and 409.2. Also shown in column (l) the taxes charged to utility plant or other balance sheet accounts.
9. For any tax apportioned to more than one utility depadment or account, state in a foohote the basis (necessity) ol apportioning such tax.
tsALANCE AT ID OF YEAR DISTHIBUTION OF TA :S CHABGED Line
No.(faxes accrued
Accoynl 236)
Prepao laxes
(lncl. in Account 165)
Electric(Account408.1, 409.1)
Extraordinary ltems
(Account 409.3)
AUIUSTIIIgII[5 TU NEI.
Earnings (Account 439,(k)
Other
fl)
-182,339
-405,100
2,04].665 4
-905,998 5
-2,238,598 6
-370,301 7
-30,392,782 8
o
8,377 0
'1
-23,857 2
-408,268 3
-329,623 4
-147,175 E
-419,065 b
-141,026 7
8
9
-33,907,090 20
21
22
23
485,660 24
8,954,826 25
26
27
2,132,526 28
-8,734 29
30
2,426 31
32
11,s66,704 33
34
35
36
150,000 37
389,052 38
463,331 39
-146,952 40
-20,229,945 41
FERC FORM NO.2 (ED.12-96)Page 263
Name of Flespondent
Avista Corp.
This
(1)
(2t
l€oort ls:
$An Originat
-A Resubmission
Date of Reoort(Mo, Da, Yi)
o4lulnoz
Year of Report
Dec. 31, 200'l
IAXES ACCRUED, PHEPAII] AND CHAHGE,IJ L'UHING YEAH
1. Give particulars (details) of the combined prepaid and accrued tax accounts and show the total taxes charged to operationsand 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. lf the
actual, or estimated amounts of such taxes are know, show the amounts in a footnote and designate whether estimated or actual amounts.
2. lnclude 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 thls page is not affected by the inclusion of these taxes.
3. lnclude 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 proportions ol prepaid taxes chargeable to current year, and (c) taxes paid and charged direct to operations or accounts other
than accrued and prepaid tax accounls.
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.
-tr tE
No.
Kind of Tax
(See instruction 5)
(a)
BALANCE AT BEGINNING OF YEAR I axesCharoed
q,JT}S
(d)
'Fifd"
%l?s(e)
Adlust-
ments
(0
I axes Accrued(Account 236)
(b)
Preoaro laxes(lnclude in Account 165)
1 lncome Tax 2001 -3.085,967
Property Tax (1 998-1 999X3)-128,294 128,294
Prop€rty Tax (2000)2.7U,33€2,323,750 -460,968
Property Tax (2001)4.575,001 2,287,311
Excise Tax (2000)2,474 2,473 13,003
Excise Tax (2001)10,7U 65,257
Unemployment lns (1998)(2)108,156 -108,15€
Unemployment lns (2001 )50,152 20,885
Motor Vehicle (2000)1,55€1,556
't lrrigation Credits (2001)-5,778 3,616 5,778
11 KWH Tax (1998-1999)7,60€-7,60€
1 KWH Tax (2@0)15,961 26,552 42,513
1 KWH Tax (2001)239,24C r 92,578
1 Franchise Tax (2001)468,387 2j20,732 2,290,588 382,956
1 Total ldaho 2,655.844 3,953,0s5 7,038,358 1,177,502
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1 STATE OF MONTANA:
1 lncome Tax (1996X4&5)100,000
1€lncome Tax (1997X4&5)100,000
2C lncome Tax (1998X4&5)100,000
21 lncome Tax (1999X4&5)2,797 315,427
22 lncome Tax (2000)-581,288 332,474
2a lncome Tax (200'l)-1,186,912
24 Property Tax (1998-1999X3)-127,810 34,1 53
2!Propefi Tax (2000)2.665.894 2,712,009
2t Property Tax (2001)s,s68,507 2,787,052
21 Unemployment lns (1 997)(2)-23,919 23,91€
2t Unemployment lns (2001 )25,33C 19,857
2!KWH Tax (1998-2000)281,41'l -52,352 229,059
3(KWH Tax (2001)977,91€702,583
31 Motor Vehicle (1999)-2,203,2,204
5z Motor Vehicle (2001)2,854 2,854
aa Consumer Council Tax 4't,682 128,948
3t Public Commission Tax 24
3!Total Montana 2,514,882 5,403,15:6,582,386 682,054
3€
37 STATE OF OREGON:
38 lncome Tax (1995)(4&5)-24,207
ec lncome Tax (1996)(4&5)150,000 1s0,000
4C lncome Tax (1997X4&5)60,450 60,450
41 TOTAL -14,177,0n -22.844,091 11,482Jt41 5,309,082
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IFERC FORM NO.2 (ED.12-96)Page 262.1
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Name of Respondent
Avista Corp.
This Reoort ls:(1) E:]An orisinal(2) 1--1A Resubmission
uale or Hepon(Mo, Da, Yr)
o413012002
Year of Beport
Dec.31, 2001
TAXES ACCRUED, PREPAID AND CHAHGED DURING YEAR (Continued)
5. lf any tax (exclude Federal and State income taxes)- covers more then one year, show the required information separately lor 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 foot- note. 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
tansmittal of such taxes to the taxing authority.
8. Beport in columns (i) through (l) how the taxes were distributed. Report in column (l) only the amounts charged to Accounts 408.1 and 409.1
pertaining to electric operations. Report in column (l) the amounts charged to Accounts 408.1 and 109.1 pertaining to other utiliV departments and
amounts charged to Accounts 408.2 and 409.2. Also shown in column (l) the taxes charged to utility plant or other balance sheet accounts.
9. For any tax apportioned to more than one utility depaftment or a@ount, state in a foohote the basis (necessity) of apportioning such tax.
BALANCE AT OF YEAR DISTRIBUTION OF TAXES CHARGED Line
No.(Taxes accrued
Accoynl 236)
Prepaid Taxes
(lncl. in tcryunt t0s)
Electric(Account408.1,409.1)Exrraorornary rrems
(Account 409.3)
AUIUSUItglItS lU nEt.iamings (Account 439,(k)
Other
fl)
-3,085,967 1
2
-383 3
2,287,690 4
-8,056 5
-54,473 6
7
29,268 8
I
-3,616 10
11
t2
46,662 13
681,486 14
748.O42 1
16
17
100,000 1
100,000 19
100,000 20
318,224 21
-248.814 22
1,186,912 23
-93,657 24
-46,114 25
2.781.45a 26
27
5,473 28
2S
275,333 '30
31
32
-87,26e 33
-18 34
2,017,704 35
36
37
-24,207 3€
3S
40
-20,229,945 41
FERC FORM NO.2 (ED.12-96)Page 263.1
Name ol Respondent
Avista Corp.
I nts Heoon ls:(1) E]An orisinal(2t 1-1A Resubmission
uale oI Heoon(Mo, Da, Yi)
o4BO12002
Year of Fleport
Dec.31, 2001
TAXES ACCRUED, PREPAID AND CHARGED DURING YE:AR
1. Give particulars (details) of the combined prepaid and accrued tax accounts and show lhe total taxes charged to operations?nd 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. lf the
actual, or estimated amounts of such taxes are know, show the amounts in a footnote and designate whether estimated or actual amounts.
2. lnclude on this page, taxes paid during the year and charged direct to linal ac@unts, (not charged to prepaid or accrued taxes.)
Enter the amounts in both columns (d) and (e). The balancing ol this page is not attected by the inclusion of these taxes.
3. lnclude 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 proportions of prepaid taxes chargeable 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.
-tIte
No.
Kind ol Tax
(See instruction 5)
(a)
BALANCE AT BEGINNING OF YEAR I axesCharoed
?'gi'ln{d)
I axesPaid
vJ*s(e)
Adjust-
ments
(fl
I axes A@rueo(Account 236)(b)
rreoato taxes(lnclude in Account 165)
1 lncome Tax (1998X4&5)148,500 148,50C
lncome Tax (1999X4&5)15,885 198,750
lncome Tax (2000)-396,357 -132,180 105,261
4 lncome Tax (2001)-854,575
Property Tax (1998-1 999X3)35,054 -2
€Propefl Tax (2000)-545,757 600,000 -34,1 53
Property Tax (2001)580,650 1,161,223
I Unemployment lns (1 998)(2)-20,038 20,038
c Unemployment lns (2001)20,933 12,825
1C Motor Vehicle (2001)2,322 2,322
t1 Busn Energy Tax Credit -463,435 49,200
12 Busn Energy Tax Credit -34,244
13 Franchise Tax (2001)3s9,708 2,261,811 2,425,632 -535
14 Total Oregon -655,990 2,596,938 3,828,772 294,314
15
16 STATE OF CALIFORNIA:
17 lncome Tax (1996X4&5)50,000
1t lncome Tax (1997X4&5)20,000
1g lncome Tax (1998X4&5)72,983
2(lncome Tax (1999X4&5)-17,636 -60,193
21 lncome Tax (2000)-71,831 33,148
2i lncome Tax (2001)-142,425
23 Property Tax (1999)(3)128,479
24 Prope@ Tax (2000)-68,757 64,99€
2!Property Tax (2001)47,60'.1 102,936
2t Excise Tax (1999-2000)-2,037 't26
21 Excise Tax (2001)357 258
2t Unemployment lns (1 998)(2)1,395 -1,39!
2S Unemployment lns (200'l)2,92C -58,081
3(Motor Vehicle (2001)-966 3,06€2,'.t02
31 Franchise Tax (2001)148,018 399,99€254,089
32 Califomia PUC Tax 4,377 4,571
3!Califomia Gas Surcharge 187,659
3,(Total California "n,mnle'-:l:!?.. 264,025 375,11 433,467 33,1 48
3t
3t STATE OF ARIZONA:
3i lncome Tax (2001)-1.656
3t Total Arizona -1,656
3(
4C STATE OF TEXAS
41 TOTAL -14.'tTt,0T7 -22.844.092 11,482,14t 5,309,08,
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IFERC FORM NO.2 (ED.12-96)Page 262.2
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Name of Respondent
Avista Corp.
I nrs Heoon ls:(1) fiAn Originat(2) f-lA Resubmission
Date of Report
(Mo, Da, Yr)
0413012002
Year of Report
Dec.31, 2001
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR (Continued)
5. lf any tax (exclude Federal and State income taxes)- covers more then one year, show the required information separately for each tax year,
identifying the year in column (a).
6. Enter all adjustrnents of the accrued and prepaid tax ac@unts in column (f) and explain each adjustment in a foot- note. Designate debit adiustments
by parentheses.
7. Do not include on this page entries with respect to deferred income tiaxes or taxes collected through payroll deductions or otherwise pending
transmittal of such taxes to the taxing authority.
8. Report in columns (i) through (l) how the tiaxes were distributed. Report in column (l) only the amounts charged to Accounts 408.1 and 409 1
pertaining to electric operations. Report in column (l) the amounts charged to Accounts 408.1 and 1 09.1 pertaining to other utility departments and
amounts charged to Accounts 408.2 and 409.2. Also shown in column (l) the taxes charged to utility plant or other balance sheet accounts.
9. For any tax apportioned to more than one utility depafiment or account, state in a lootnote the basis (necessity) of apportioning such tax.
EALANCE AT OF YEAR Line
No.(Taxes accrued
nccolnf 236)
Prepard la(es
(lncl. in Account 165)
ElEctric(Account 40^8.'t, 409.1 )
Exlraorornary llems
(Accounl40s.3)
Acltustments to Het.
Earnings (Account €9)
(k)
Other
il)
1
214,635 2
.158,916 3
-854,575 4
35,052 5
20,091 6
-580,573 7
8
8,108 I
10
-414,235 11
-34,244 12
195,353 r3
-1,593,511 14
15
l6
50,000 17
20,000 18
72,983 1S
42.557 20
-38,683 21
-142,429 22
128,479 23
-3,75S 24
-55,335 25
-2,163 26
1m 27
28
61,00c 29
30
293,92s 31
-194 32
-187,659 33
238,822 34
35
36
-1,656 37
-1,65€38
39
40
-20,229,945 41
FERC FOBM NO.2 (ED.12-96)Page 263.2
Name ot Respondent
Avista Corp.
This Reoort ls:(1) gllnn orisinat(2) nA Resubmission
Date of Reoort(Mo, Da, Yi)
o413012002
Year ot Report
Dec.31, 2001
IAAtsU AUUHUEU, I-HEF'AIU ANU UHAHGEU UUHING YtsAH
1. Give particulars (details) of the combined prepaid and accrued tax ac,counts 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. lf the
actual, or estimated amounts of such taxes are know, show the amounts in a footnote and designate whether estimated or actual amounts.
2. lnclude 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 ol this page is not affected by the inclusion of these taxes.
3. lnclude 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 proportions ol prepaid taxes chargeable to current year, and (c) taxes paid and charged direct to operations or accounts other
than accrued and prepaid tax actounts.
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.
JIIE
No.
Kind ol Tax
(See instruction 5)
(a)
BALANCE AT BEGINNING OF YEAR I axesCharoed
quJlls
(d)
I alesPaid
gsr?s
{e)
Adjust-
ments
(f)
I axes Accrueo(Account 236)(b)
Preoaro I axes
[nclude in Account 1 65)
1 Unemploynnt lns -24,553 24,553
Unemployment lns (2001)1,576 368
Total Texas -24,553 26,129 368
STATE OF KENTUCKY
Unemploymnt lns -7t 74
Unemployment lns (2001)1,624 2,349
Total Kentucky -74 1,698 2,349
1 STATE OF INDIANA
11 Unemployment lns (1 999)-142 142
1 Unemploynent lns (2000)
1 Total lndiana -142 142
'l
1 STATE OF
1 Unemployment lns -30,777 30,777
1 Total Massachusetts -30,777 30,777
1t
1 STATE OF VIRGINIA
2C Unemploymnt lns 65 -65
21 Unemploynent lns (2001)20c
22 Total Virginia 65 135
23
24 STATE OF WEST VIRGINIA
2a Unemployment lns 279 -278
2e Total West Virginia 279 -279
27
2e STATE OF WYOMING
29 Unemployment lns 707 -707
3C Unemployment lns (2001 )585
31 Total Wyoming 707 -122
5Z
JJ STATE OF FLORIDAuUnemployment lns (2000)-141 141
OE Unemployment lns (2001 )28C 650
3€Total Florida -141 421 650
37 STATE OF NEW YORK
38 Unemploymont lns (2000)-4,063 4,063
ac Unemployment lns (2001)30c
4 Total New York -4,063 4,36:
41 TOTAL -14,1n,0n -22,U4,09/.11,482,'t4t 5,309.0&
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IFERC FORM NO.2 (ED. t2-96)Page 262.3
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Name of Respondent
Avista Corp.
This ReDort ls:(1) fiRn Originat(2) nA Resubmission
uate oI HeDon(Mo, Da, Yi)
0413012002
Year of Report
Dec.31, 2001
TAXES ACCRUED, PREPAID AND CHARGED DURING YIAR (Continued)
5. lf any tax (exclude Federal and State in@me taxes)- covers more then one year, show the required information separately lor each tax year,
identifying the year in column (a).
6. Enter all adjustments ol the accrued and prepaid tax ac@unts in column (f) and explain each adjustment in a foot- note. 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
transmittral ol such tiaxes to the taxing authority.
8. Report in columns (i) through (l) how the taxes were distributed. Report in column (l) only the amounts charged to Accounts 408.1 and 409.1
pertaining to electric operations. Report in column (l) the amounts charged to Accounts 408.1 and 109.'l pertaining to other utility departments and
amounts charged to Accounts 408.2 and 409.2. Also shown in column (l) the taxes charged to utility plant or other balance sheet accounts.
9. For any tax apportioned to more than one utility department or account, state in a foomote the basis (necessity) of apportioning such tiax.
AALANCE AT OF YEAR DISTRIBUTION OF TAXES CHARGED Line
(Taxes accrued
Accoln| 236)
lJropalo raxes
(lncl. in Account 165)
Electric I Extraordinary ltems
(Account408.1, 40e.1) | (Accou[|40e.3)
Aotusrmenrs ro Her.
Earnings (Account 439)(k)
Other
(t)
No.
1
1,208
1,208 3
4
5
b
-725 7
-72s 8
10
11
12
13
4
5
6
7
8
I
20
200 21
200 22
23
24
25
26
27
28
29
582 30
582 31
32
J5
34
-370 3s
-370 36
37
38
300 ec
300 40
-20,229,945 41
FERC FORM NO.2, (ED. 12-96)Page 263.3
Name ol Respondent
Avista Corp.
This Reoort ls:(1) SlRn orisinat(2) 5A Hesubmission
Date of ReDort(Mo, Da, Yi)
o413012002
Year or Hepon
Dec. 31 , 200'l
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR
1. Give particulars (details) ol the combined prepakl and accrued tiax a@ounts and show the total taxes charged to operationsand other accounts during
the year. Do not include gasoline and other sales taxes whk*t have been charged to the accounts to which the taxed material was charged. It the
actual, or estimated amounts of such taxes are know, show the amounts in a footnote and designate whether estimaled or actual amounts.
2. lnclude 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 ol this page is not atfected by the inclusion of these taxes.
3. lnclude 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 proportions of prepaid taxes chargeable 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 ol each kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained.
-tIle
No.
Kind of Tax
(See instruction 5)
(a)
BALANGE AT BEGINNING OF YEAR I axesCharoed
g,Ji?s
(d)
I axesPaid
%lln(e)
Adjust
ments
fi)
I axes A@rueo(Account 236)(b)
rreoaE taxes(lnclude in Account 165)
1
COUNTY& MUNICIPAL
Occupation -50,357 12,967,04!1 1 ,814,621 -382,956
Forrest Fire Protection -396 39(294
Greenacres lrrigation -7
City ol Spokane PBIA -619 62C
WA Dept of Natural 139 -135 18,930
Spokane Utility Tax 1,419 -1,41S
Misc.-622 1,97(
1C Total County -s0,44{t 12,968.48(11,833,845 -382,956
11
12 STATE OF ILLINOIS
1 Unemploymnt lns. 1999-2000 -s86 58€
14 Unemployment ]ns. 2001 27C
15 Total lllinois -586 85€
1€
17 STATE OF UTAH
18 Unemployment lns. 2001 1,658
19 Total Utah 1,658
2(
21
22
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2t
2!
2(
2'i
2t
2S
3(
31
Oz
3t
.E
3t
3i
3t
e(
4(
4 TOTAL -14,177,On -22.U4.09i 11,482,141 5,309,0&
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tFERC FORM NO.2 (ED. 12-96)Page 26.2.4
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I ,r"" F.RM No.2 (ED.12-s6)Page 263.4
Name of Respondent
Avista Corp.
This Reoort ls:(1) fiAn Original(2) nA Resubmission
uale ot Heoon(Mo, Da, Yi)
0413012002
Year or Hepon
Dec. 31,2001
TMES ACCRUED, PREPAID AND CHARGED DURING YEAR (Continued)
5. lf any tax (exclude Federal and State income taxes)- clvers more then one year, show the required information separately lor Each tax year,
identitying 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 foot- note. Designate debit adjustments
by parentheses.
7. Do not include on this page entries with respect to delened income taxes or tiaxes collected through payroll deductions or otherwise pending
transmitlal of such taxes to the taxing authority.
8. Report in columns (i) through (l) how the taxes were distributed. Report in column (l) only the amounts charged to Accounts 408.1 and 409.1
pertaining to electric operations. Report in column (l) the amounts charged to Accounts 408.1 and 109.1 pertaining to other utility departments and
amounts charged lo Accounts 408.2 and 409.2. Also shown in column (l) the taxes charged to utility plant or other balance sheet accounts.
9. For any tax apportioned to more than one utility department or acrcount, state in a footnote the basis (necessity) of apportioning such trax.
BALANCE AT OFYEAR DISTRIBUTION OF TAXES CHARGED Line
No.(Taxes accrued
Accoynl 236)
Prepaad Taxes(lncl. in Account 165)
Electric(Account 408.1, 409.1)(i)
tsxtraordrnary ltems(Account 409.3)
AUtUSil I tEr tts tU nEt.
Eamlngs (Account 439)(k)
Other
fl)
1
2
719,108 3
-294 4
5
6
-18,930 7
8
r,349 I
701,233 0
1
2
3
27Q 4
27A 5
6
7
-1,658 8
-1,658 I
20
21
22
2a
24
2!
2t
27
2t
29
3C
31
32
ea
34
QE
3€
37
3t
3!
4C
-20,229,945 41
Name ot Resrcndent
Avista Corp.
This ReDort ls:(1) E]An Origlnal(2) l-lA Resubmission
Date ol Report(Mo, Da, Yr)
04130/2002
Year ol Report
Dec.31 , 2001
ACCUMUI,ATED DEFERRED INVESTMENT TAX CREDITS (Account 255)
Report below information applicable to Account 255. Where appropriate, segregate the balances and transactions by utility and
nonutility operations. Explain by footnote any correction adjustments to the account balance shown in column (g).lnclude in column (i)
the average period over whi$ the tax credits are amortized.
Jne
No.
AC@Unr
Subdivisions(a)
cEtatr rul, attIrgll rI [] r9
(b)
Deferred lor Year ,{tCurrenl alrons Ioaar's lncome Adjustments
(s)ACCOUnI NO.(c)AmounI(d)ACCOUnT NO.(e)Amounr(f)
)o/o
l7o
7o/o
1Oo/o
rOTAL
1(Gas Propenry (10olo)768,192 141 't.40 49,30r
11
1"rOTAL PBOPERry 768,'192 49,30r
1i
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1T
1(
2(
2'l
2t
2i
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2!
2t
2'j
2t
2l
3(
3
3:
3i
3
2t
3(
3i
3l
3(
4t
4
4i
4i
4
4!
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4',
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IFERC FORM NO.2 (ED.12-89)
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267
Name of Respondent
Avista Corp.
This Reoort ls:(1) 5]An orisinat(2) llA Resubmission
Date of ReDort(Mo, Da, Yi)
04130/2002
Year of Report
Dec.31, 2001
ACCUMULATED DEFERRED INVESTMENT TAX CBEDITS (Account 255) (coniinued)
Balance at Endof Year
/h\
Avetaoe Fenooof Allocation
to lncome/i\
ADJUSTMENT EXPLANATION Ltne
No
1
z
4
5
6
7
I
I
718,884 0
I
718,884 2
3
4
5
6
7
B
o
20
21
22
23
24
2!
2e
2i
2t
2S
3C
3l
32
JJ
34
CE
3€
31
3t
3€
4C
41
42
43,
44
4l
4E
47
48
Name ofRespondent
Avista Corp.
I nrs KeDort ls:
lr)E an Original
l2)! A Resubmission
Lrate oI Keport
(Mo, Da, Yr)
April 30, 2002
Ye:[ oI KePort
Dec. 31, 2001
MISCELLANEOUS CURPENT AND ACCRUED LIABILITIES (Account 242\
1. Describe and report the amount of other current and 2. Minor items (less than $100,000) may be grouped
accrued liabilities at the end of year. under approprate title.
Line
No.
Item
(a)
tsalance at
End of Year
(b)
2
3
4
5
6
7
8
9
l0ll
L2
13
t4
l5
l6
t7
18
l9
20
2l
'r1
23
24
25
26
27
28
29
30
3l
32
33
34
35
36
37
38
39
40
4t
42
Gas Plant Accrual 242.LO
California Commission Fee
Rate Refund - Idaho PCA 242.11
Audit Expense Accrual 242.20
FERC Administrative Fee Accrual 242.30,242.31
WIJTC Fee Accrual 242.40
Non-monetary Power Exchan ge 242.50
Payroll Equalization
Demand Side Mgmt Tariff Rider 242.7 1,72,73,7 4
Low Income Energy Assistance 242.76 &242.77
ESOP401-KPlat 242.75
Other Miscellaneous
Idaho Comm Fee
Rounding
9U5,9U9
28,105
0
25,000
638,084
0
1,150,091
9,080,942
(12,426,638)
813,285
70,u2
r50.189
0
(r
43 IOTAL 515,408
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FERC FORM NO.2 (ED. 12-86)Page 268
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lrrr" F.RM No.2 (ED. r2-s4)Page 269
Name or Hesponoent
Avista Corp.
This Reoort ls:(1) EAn orisinat(2) nA Resubmission
uale oI Heoon(Mo, Da, Yi)
ou3012002
Year of Report
Dec. 3.t, 2001
OTHER DEFFERED CREDITS (Account 253)
'1. Report below the particulars (detrils) called for concerning other deferred credits.
2. For any deferred credit being amortized, show the period ol amortization.
3. Minor items (5% of the Balance End of Year lor Account 253 or amounts less than $10,000, whichever is greater) may be grouped by classes.
-me
No.
Description and Other
Deferred Credits
(a)
Balance at
Beginning of Year
(b)
DEBITS
Credits
(e)
Balance at
End of Year
(f)
Contra
Account(c)
Amount
(d)
1 Uneamed lnterest - Customer
2 wiring & conversions 253.00 5,57t 419 9,84i 4,28i 18
3
4 California PGA - WPNG 253.02 OJ 43'l o.i
5
o Delerred revenue prepaymenl
7 Pacific Walla Wdla/Enterprise
8 Line. (Amort = 19 yrs) 253.08 79,662 456 9,37i 70,290
I
10 BPAC&RD 2s3.10 65,70C 65,700
11
12 Supplemental Executive
13 Retirement Plan 253.29 8,411,91€426 884,632 2,835,66'10,362,946
14
15 Deferred Compensation 90,91,92 10,986,59S 131 2,469,70i 4,229,49E 12,746,394
16
17 Gain on Sale and leaseback
18 of Building (Amortization period
19 is 25 years)2,876,O1(931 26't,45€2,614,560
20
21 Rathdrum Refund 253.12
22 Amortization period is 25 years 645,44i 550 33,822 611,621
23
24 Mark to Market 253.74 557 1,542,579,771 1,701,997,95€1 59,41 8,1 85
25
2E Power Cost Adjustment - ldaho 1,374,00(557 3,341,00C 1,967,00C
27
2e FASS Mark to Market 253.95 13,653,729 r3,653,729
29
3C
31
5Z
on
34 Water Heater Program - WPNG -35,00(417 3s,000
3s
36 Deferred PGE Contract 253.70 40,412,401 456/495 9,814,441 30,597,960
37
38 Maior Mtce. Reserve - Rathdrum
ec
40 Trust Fund - Centralia 253.11 857,701 128 5,17t 852,529
41
42 Long Term lncentive Plan 253.93 7,09(9201417 50,004 57,1 03
43
44 lD Clark Fork Relicensing 253.89 -389,955 171 695,94S 480,517 -605,387
45
46 WA Clark Fork Relicensing 253.88 711,880 171 711,88(1 14,55C I t4,550
47 TOTAL 65,94it,409 1,560,817,11(1,72s,433,899 230,560,198
FERC FORM NO.2 (ED.12-96) page 224
Name of Respondent
Avista Corp.
I nls HeDOn lS:(1) E]Rn Originat(2) 1-1A Resubmission
Date ol Reoort(Mo, Da, Yi)
0413012002
Year or Hepon
Dec. 3'l ,2001
IAAEIi. (JI HEH PHgPEH I Y (ACCOUNI 26:
1. Reporl the information called for below conceming the raspondent's accounting for deferred income taxes rating to property not
subject to accelerated amortization
2. For other (Specify),include deferrals relating lo other income and deductions.
Line
No.
Account
(a)
Balance at
Beginning oI Year
(b)
CHANGES DURING YEAR
Amounts Debited
to Account 410.1
(c)
Amounts Credited
to Account 411.1
(d)
Electric 158,493,54(3,349,441
Gas 29,757,61t 3,3/,5,721
General Common 12,457,ile 532,38t
TOTAL (Enter Total ol lines 2 thru 4)200,708,771 7,227,55i
€Non-operating
8
c TOTAL Account 282 (Enter Total ol lines 5 thru 200,708,771 7,227,557
11 Federal lncome Tax 196,023,27€8,541,957
12 State lncome Tax 4,68s,49a 978,761
t3 Local lncome Tax
NOTES
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Name of Respondent
Avista Corp.
This Reoort ls:(1) 5]nn Originat(2) nA Resubmission
uare or H6pon(Mo, Da, Yr)
o4l30,12002
Year of Report
Dec.31, 2001
ACGUMULATED DEFEHHEU INUOME I AXES . (J I HEH PHOPEH I Y (ACCOUNI 262) (L;ONflNUEd)
3. Use footnotes as required.
CHANGES DURING YEAR ADJUSTMENTS
Balance at
End of Year
(k)
Line
No.Amounts Debited
to Account 410.2
(e)
Amounts Credited
to Account 411.2
(f)
Debits Credits
AC@Unt
Credited(s)
Amount
(h)
Ac@unt
Debited
Iil
Amount
0)
1 61 ,842,98,2
33,1 03,34(3
12,990,00 4
207,936,32t 5
2,293,16 2,293,16 6
7
8
2,293,16 210,229,481 I
204,565,23r 11
5,664,25r 12
13
NOTES (Continued)
I ,=r" F.RM No.2 (ED. r2-e6)Page 275
Year of Report
Dec.31, 2001
1. Report the information called for below concerning the respondent's accounting for deferred income taxes relating to amounts
recorded in Account 283.
2. For other (Specify),include deferrals relating to other income and deductions.
Balance at
Beginning of Year to Account 410.1 to Account 41 1.1
2,7 14,11
2.714.11TOTAL Electric Cfotal of lines 3 thru 8)
TOTAL Gas (Iotal of lines 11 thru 16)
TOTAL (Acct 283) (Enter Total of lines 9, 17 and 18)
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tFERC FORM NO. 2 (ED. 12-96)Page 276
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Name o, Hesponoenr
Avista Corp.
This R600rt ls:(1) p(len orisinat(2) nA Resubmission
Date ol Report(Mo, Da, Yr)
0413012002
Year of Report
Dec.31, 2001
AUUUMUU\ I EIJ UE EHFTEU INU\JMtr I A,\E,5 . L' I NtrH TACCOUNI ZUSI (UONIINUEOI
3. Provide in the space below explanations for Page 276 and 277. lnclude amounts relating to insignificant items listed under Other.
4. Use footnoles as required.
EHANGtrS NI IFIING YtrAEI A IS
Balance at
End of Year
/kl
Line
No.
Amounls ueDlleo
to Account 410.2
lal
ATIOUnIS UreOlIeO
to Account 41 1.2
Ifl
Debits Credits
AC@Unlcq$ted Amount
(h)
ACCOUnI
Debited
fi)
AmounI
fi)
1,680,306 190 12,960.704 e83.85 1 ,157,026 131,889,999 3
182 1,352,U1 -'t,352,347 4
190 17,14 -17,180 5
6
7
8
1,690,306 14,330,231 1,157,OzC 130,520,472 I
352,887 17,276,605 11
12
13
14
15
16
352,887 17,276,605 17
182 &28 7,517,65t 139,550,762 18
2,033,19t 21,U7,W|1,157,02e 287,U7,839 19
287,U7,839 21
22
23
NOTES (Continued)
Name of Respondent
Avista Corp.
This Reoort ls:(1) [Rn originat(2) llA Resubmission
uate or Heoon(Mo, Da, Yi)
o413012002
Year o, Report
Dec.31, 2OO1
OTHER REGULATORY LIABILITIES (Account 254)
1. Reporting below the particulars (Details) called for cqncerning other regulatory liabilities which are created through the rate-making
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 $50,000, whichever is Less) may be grouped
by classes.
Line
No.
Description and Purpose ol
Other Regulatory Liabilities
(a)
DEBITS
Credits
(d)
Balance at
End of Year
(e)
ACCOUnT
Credited
/h'l
,{mounr
(c)
1 Centralia Sale 254.1 1, 028 & 038 407.41 17,976,924 160,786 9,756,70S
2
3 FAS 109 - Accounting for lncome Taxes 254.18 190.18 53,100 364,967
4
5 Rate Base Credit - WA 254.43 253.70 19,678,950 2,915,40C
tt
7 BPA Residential Exchange 254.45,028 & 038 407.45 2,024,335 918,32!-1,106,012
8
9
10
11
12
13
14
15
16
't7
18
19
20
21
22
23
24
25
26
27
2A
29
30
31
32
33
34
35
36
37
38
39
40
41 TOTAL 39,733,30S 1.079,1't0 11,931,064
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IFERC FORM NO.2 (ED.12-94)Page T78
This Page Intentionally Left Blank
FERC FORM NO. 2 (ED. 12.86)
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Name of Respondent
Avista Corporation
lhis Reoort ls:(1) E An Original
(21 E A Resubmission
Date of Report
(Mo, Da, Yr)
April30, 2002
Year of Report
Dec. 31, 2001
GAS OPERATING REVENUES (Account 400) (Continued)
reported figures, elglain any inconsistencies in a loot- per day of normal requir€menls. (Se€ Account 481 of the
note. Uniform System ol Accounts. Explain basis o, classilication
6. CommercialandlndustrialSales, Account481, maybe inatootnote.)
classilied according to the basisolclassilication(Srnall or 7. See page 108, lmportant Changes During Year,
Commercial, and Large or lndustrial) regularly used by the for important new territory added and important rate increases
respondent il such basis ol classification is not generally or decreases.
greater than 200,000 Mcl per year or approximately 800 Mcl
THERMS OF NATURAL GAS SOLD AVG. NO. OF NAT GAS CUSTRS. PER MO
Quantity for Year
H)
Quantity for
Previous Year
lcl
Number for Year
(f)
Number for
Previous Year
b)
Line
No.
1
t98,4 3,7 212.I9E.330 249.650 242.943 2
3
126.469,M7 't35.'t25.943 30.355 29.135 4
15.523 )94 18.349.638 328 334 5
6
767.820 801,523 37 36 7
u1.573.624 ("366.475.434 28O,370 273,O92
4.830,610 4.O'34.4tO .I 15 I
.3/,6.404.238 370.509.904 280,371 273,107 10
:::: I
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iiiii::: Il::: il::iir.:. i
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i:::
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.:.::.:
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NOTES
Ouantities of natural gas expressed in therms:
to convert thems to MCF, divid€ therms by a
BTU factor o, 10.20
(1) lncludes $6,834,784 unbilled revenues.
(2) lncludes (7,240,316) therms relating to unbilled r€venues.
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14
15
16
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20
21
22
23
24
256
27
2A
29
30
31
32
33
rERC FORM NO.2 (ED.12-80 Page 301
Name or Hesponoenr
Avista Corp.
This Report ls:
(1)EI An orisinal
(2)fl A Resubmission
Date ol Hepon
(Mo, Da, Yr)
April30,2002
Year oT Hepon
Dec. 31, 2001
DISTRIBUTION TYPE SALES BY STATES
1. Repofl in total for eadt State, sales by classes of serv-
ce. Report main line sales to residential and commercial
]onsumers in total bv States. Do not include lield and main
line sales t0 industrial consumers; these should De reponeo
on page 306, Field and Main Une lndustrialSales ol
NaturalGas.
rn(
No.
Names of State
lal
Total Residential. Commedcal and lndustrial Residential
uperafing Hevenues
fiotalol (d), (f)and (h))
ht
tnerms
fl'otalof (e), (g)and (i))
lc)
Operating Revenues
fi)
1
2
3
4
5
6
7I
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
4'.1
42
43
44
45
46
state ot wasnrnglon
State of ldaho
State of Oregon
State of Califomia
Totals
146,178,79'l
57,212,722
75,161,232
16,173,400
294,726,145
170,995,8ti9
67,873,477
82,134,999
19,801,463
340,805,808
uv,9v /,girl
33,618,469
44,350,935
11,617,076
179,584,411
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FERC FORM NO.2 (ED 12-88)Page 302
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Name ol Flespondent
Avista Corp.
tnts F{eDon ts:(r)EI An Originat
(2)E A Resubmission
Date ol Repon
(Mo, Da, Yr)
April30,2002
Year oI Hepon
Dec. 31, 2001
DISTRIBUTION TYPE SALES BY STATES (GONtiNUEd)
2. Provide totals lor sales within eadt Shte.
3. Nafunal gas means either natural gas unmixed, or any
mixture ol naturaland manufacfured oas. State in a footnote
the components 0f mixed gas, i.e., whether natural and otl
refinery gses, natunal and coke oven gases, etc., and specify
the appproimate percentage ol natural gas in the mixlure.
Residenual {ftntinued}Commefical lndustrial
Therms
@)
Operating Revenues
(t)
Therms
b)
uperamg F{evenues
(ht
Therms
fi)
No,
IUU,UVU,UVU
38,426,323
45,558,382
14,337,664
198,413,267
51,975,312
21,014,830
26,465,868
4,556,324
104,012,334
65,U46,956
25,94,/,20'l
30,414,491
5,463,799
126,869,M7
4,ZUb,b4U
2,579,423
4,344,429
0
1 1,129,400
5,856,0I5
3,502,953
6,162,126
0
15,523,094
1
2
3
4
5
6
7
8
9
10
1'l
12
13
14
15
16
17
't8
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33u
35
36
37
38
39
40
41
42
4tl
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45
46
FERC FORM NO. 2 (ED 12-88)Page 303 Next page is 310
tlame of Respondent
Avista Corp.
Ihis Reoort Is::l) fi nn origiout
'.2) [ n Resubmission
Date of Report
lMo, Da, Yr)
April 30, 2002
Year of,Repon
December 31,2001
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for orevious vear is not derived from oreviouslv remrted figures- exnlain in footnotes.
Linr
No
Amount
Amount for
Current Year
lhl
Amount for
Previous Year
lrl
I I. PRODUCTIONEXPENSES il;iii:r:
2 A. Manufactured Gas Production 0t
J Vlanufactured Gas Production (Submit Suoolemenlal Statemmt)
4 B. Natural Gas Production
5 B I . Natuml Gas Production md Gatherins
6 )oeration
7 750 Ooeratiou Suoervision and Eosineerins
8 751 Production Maos md Records
9 752 Gas Wells Exoenses
to 753 Fieldlines Exoenses
I 754 Field Comnrcssor Station Exmnses
a 755 Field Compressor Station Fuel and Power
l3 756 Field Measurinq and ResulatiDs Station Exoenses
4 757 Purification Ermnsm
5 758 Gas Well Rovalties
l6 759 OtherExoenses
l7 760 Rents
l8 TOTAL Ooeration (Enter Total of lines 7 thm lT)0
aintetrance
20 761 Maintenance Sumruision md Ensincring
2t 762 Maintenance of Structures and Imomvements
22 763 Maintenmce of Pmducins Gas Wells
23 764 Maintenance of Field Lines
24 765 Maintenance of Field Comoressor Station Eouioment
25 766 Maintenmce of Field Mas- and Res- Sta- Fruinmeni
26 767 Maintenance of Purification EouiDment
27 768 Maintenance of Drilline and Cleanine Eouioment
2a 769 Maintenance of Other Eouinmenl
29 TOTAL Maintenance (Enter Total of lines 20 thru 28)0
30 TOTAL Nattrral Grs Prnduaion and Gathrins (Total of lines l8 md 29)0
3l 82. Produas Extraction
Deration
33 770 Ooeration Sunervision md Ensinetrins
74 771 Operationl-abor
35 772 GasShrinkase
36 773 Fuel
37 774 Power
38 775 Materials
39 776 Ooeration Suoolies and Exoenses
4{t 77? Gas Pmxserl hv Othem
4t 778 RovaltiesonPmduasErtmcted
42 779 Markaine ExDerses
43 780 Products PurchasedforResale
44 781 Variation in Pmducts Invmtoru
45 0.,ess) 782 Extracled hoducts Used bv the Utilitv{redit
46 783 Rmts
47 TOTAL Ooeration (Enter Total of Lines 33 thru 46)0
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FERC FORMNO.2 (ED 12-E8)Page320
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!{ame of Respondent
Avista Corp.
lhis Reoon Is:rl E] tuoieinal
2) [ AResubmission
Date of Report
(Mo, Du, Yr)
April 30,2002
Year of Report
December 31. 2001
GAS OPERATION AND MAINTENANCE EXPENSES
Line
No.
Amount
Amount for
Current Year
Amount for
hevious Year
(cl
82. Products Extraction (Continued)
48 V{aintenance
49 7M Maintenance Sumrvision and Ensineerins
5(785 Maiutenance of Smrctures and ImDrovemens
5t 786 Maintenance of Extraction and Refinins Eouipment
787 Maintenance of PiDe Lines
5:788 Maintenmce of Extffted Pmducts Storage Eouioment
Jz 789 Maitrten2nce of ComDressor EouiDment
5!790 Maintenance of Gas Measuritrs and Res. Eouipment
5(791 Maintenmceof OtherEouinment
5:TOTAL Maintenance (Enter Total of lines 49 thru 56)0
5I TOTAL Prnducts Extmtion (Enter Total of lines 47 md 57)0
5!C. Exoloration aod Develooment
({_)peration
6l 795 Delav Rentals
6t 7!)6 Nonoroductive Well Drilline
61 797 Abmdoned less
&798 Other Exolomtion
6:TOTAL Exoloration and Develooment (Enter Total of liDes 6l thru 64)0
D. Other Gas SuoDly ExDeNes
61 Sneration
61 800 Natural Gas Well Head Purchases
6'800.1 Nanrral Gas Well Head Purchases, Intracompaov Transfers
6t 8Ol Nahrml Gtr Field Line hrchases
7(802 Natural Gas Gasoline Plant Outlet Pruchases
7 803 Natuml Gas Tmnsmission Line Purchases
72 804 Natural Gas Citv Gate Purchases 218.998. r I 5 t68.147.943
7 804.1 Liquefied Natural Gas hrrchases t,483,197 I 540 5t4
7A 805 OtherGas hrchases 25.7s5.M6 ( l4_336.705
7a (Le.ss) 805.1 hrchased Gas Cost Adiusunents (33.295.O74 14.034.51 l
7(
7i TOTAL Purchased Gm (Enter Total of lines 67 to 76)212.942.281 14t.317.241
78,806 Exchanee Gas
1e \rrchased Gaq Exmnses
8(807. I Well Exoenses-hrrchased Gas
R Qn? , a)rraari^n af Drahatczl l.Iac Mcacrrrino Qrarian<
It 807.3 Maintmmce of Purchmed Gas Measurins Stations
8:807.4 Purchased Gas Calculations Exoenses 154.47t 190.87!
807-5 Oths Purchasgl Gas Exmnses 71.416 92.952
8i TOTAL Purchased Gas Exoenses (Enter Total of lines 80 thru 84)225-892 283.83 r
8l 808.1 Gas Withdrawn from Storase-Debil 79.840
8:(l-ess) 808.2 Gas Delivered to Storase-Credit 4.366 (67 _546
8t 809.1 Withdrawals of Liouefied Natural Gas for hocessine-Debit
8t ([ess) 8(R-2 Deliveria of Natuml Gas for Pmssins-Crcdit
9(Sas Used in Utilitv Ooerations-Credit
gl 8 I 0 Gas Used for Comoressor Station Fuel-Credit
9i El I Gm tlsed for Pmducts Extraction-Credit
9:812 Gas used for Gher Utilitv Ooerations-Crtdit
TOTAL Gas Used in Utilitv Operations-Credit (Total of lines 9l thru 93)0
9l 813 OtherGm Sunnlv Exnenses 717 _541 a6-97
9(TOTAL Other Gas Suoolv Exp (Total oflines 7?.78.85.86 thru 89.94.95)2t3-490-OBt t4t.700.-337
9:TOTAI- Production Exmses (Enter Total of lina 3-30-58-65- md 96)211-4m,ORi 141.700.450
FERC FORM NO. 2 (ED 12-88)Page 321
Name of Respondent
Avista Corp.
fhis Reoort Is:(l) fi e,nOngina
i2) ! n Resubmission
)ate of Report
'Mo, Da, Yr)
{pril 30, 2002
Year ofX,epon
December 31,2001
GAS OPERATION AND MAINTENANCE EXPENSES
Lirc
Nn
Amount
Amount for
Current Year
lhl
Amount for
hevious Year
ltl
9t 2. NATURAL GAS STORAGE, TERMINALING AND
PR TTF'.SSING FXPENSF.S
9!A- Ilndmmund Stompe Exmsas
l0(Operation
l0l 8 14 Ooeration Suoervision and Enpineerins (2.O86 (3-743
t02 815 Maps and Records
103 815 Wells Exmnsas r 5-90r 49.l I !
t&817 LinesExoense 2t
818 Compressor Station Exoenses t42.t94 74.71',
l06 819 Comnressor Stetion Fuel end Powtr 6.444 8.66:
107 820 Measurinc and Resulatins Station Exnenses 10.850 30.38 l
E2l PurificationExDenses 5.571 67t',
lG)822 Exoloration and Develoommt
ll0 823 Gas I-osses
824 OtherExms*22.759 t6.46
Lt2 825 Storaee Well Rovalties 26.115 39.26\
826 Reots ( 1.5581 (3.475'
ll4 TOTA.L Omation (Entn Total of lines lot thru I l3)226-O1A 217.7&
ll5 Maintenance
ll6 830 Maintenance SuDervision and Eoeineerine 6t.32t 66,86!ttl 831 Mainteme nf Struchrrs and Imnmvemenis l4 9_15(
u8 832 Maintenance of Reservoirs and Wells 45-301 19.47 |
ls 8?i Maintenance nf I -ines 6.661 4.26:,tn 834 Maintenance of Comnmsor Station EouiDmmt 97.92 80-44t
t2l 835 Maintenance of Measurine atrd Resulatins Station Eouioment
122 836 Maintenmce of Purification Fauinmmt t -70 2r -(nr
121 837 Mainrenanceof OtherEouiDment 4.121 9.8illuTOTAL Maintemne (Enta Total of lines I 16 thru I 23)2t 8-2r r-06
r25 TOTAL Underpround Storase ExDenses (Total of lines I 14 and 124)444.91:428-83(
126 B. Othcr Storaee ExDenses
t21 forarion
r28 840 Ooeration Suoervision and Ensineerins
129 841 Ooeration l,aborandExDeDses
130 M2 Rmts
l3l 842.1 Fuel
l\2 E42.2Power
133 M2-3 Gas l-osses
rld TOTAL Ooeration (Enter Total of lines 128 thru 133)
135 Vlaintmmce
136 843, I Maintenance Suoerrrision and Ensineerins
117 843.2 Maintcnance of Structurcs and Imorovements
138 843.3 Maintmance of Gx Holders
139 843.4 Maintenance of Purification Eouioment
140 843--5 Meintmane of I iouefaction Fauinmeri
l4l 843.6 Maintenance of Vamrizinp Eouioment
t42 843.7 Maintenance of Comoressor Eouioment
147 843.8 Maintenance of Measurins and Rezulatine Eouioment
ltl/.843-9 Maintmmce of Oths Eouinment
r45 TOTAL Maintenrnce (Enter Total of lines I 36 thru 144)
146 TOTAL Chher Stomse Exmnses (Enter Toml of lines I 34 md 145)
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FERC FORM NO. 2 (ED 12-88) Page 322
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Name ofRespondetrt
Avista Corp.
fhis Remrt Is:
:r) fi eooigioa
|2) ! AResubmission
Date ofReport
'Mo, Da, Yr)
April 30,2002
Year ot Report
Decernber 31. 2001
GAS OPERATION AND MAIN1ENANCE EXPENSES
Line
!,lo-
Amoutrt
Amount for
C\rrent Year
tht
Amount for
hevious Year
(c)
t4',C. Liouefied Natural Gas Terminalins and Processins ExDenses
IL'Cperation
l4a qr./. I nffid^n arrmicinn rnd I
l5(844.2 LNG Processine Terrninal l.abor and Exoenses
l5 R4y' 1 I -innefanrion Prmx<inp I rlnr end Ermnses
l5t 844-4 Liouefeaion Tmsmrtation l-abor and Exoeoses
t5:844.5 Measurins atrd Reenlaths Labor and ExDenses
l5z 844.6 Compressor Station labor and Expenses
155 844-7 Cnmmunietion Svstm ExDenses
156 844.8 Svstem Control and [,oad Disoatchinc
t57 845.1 Fuel
158 M5.2 Power
159 845.3 Rents
t60 845.4 Dernurraee Clurces
l6l (lxs\ 845-5 Wharfase Reeins-Credit
162 845.6 Processinp Liouefied or Vaoorized Gas bv Others
163 846.1 Gas Losses
t(a M6-2 Otha Exmnses
165 TOTAL Oneration (Enter Total of lines 149 thru 154)
166 Maintenance
161 M7.I Mainteme -Sumision and Ensineerins
168 847.2 Maintenance of Structures and lmDrovcme[ts
rtg l,l? 1 Mdntmanac af I NG Drmauino Tamincl Fnrimmt
170 847.4 Mainrenanoe of LNG Tra$Donation Eouioment
t7t Ry'? 5 Maintmance of Messrrins and Remlatins EouiDment
t72 M7.6 Mimtmme of Cmnrmsor Station Eouioment
173 M7.7 Maintenance of Communication Eouipment
174 847.8 Maiutenance of Other Eouipment
115 TOTAI- Maintenane (Ents Total of lines 167 thru 174)
116 TOTAL Liouefied Nat Gas Terminaling and hocessins Exp (Lines 165 & 175)
t77 TOTAL Naoral Gas storase (Enter Total of lines 125, 146, and 176)444.915 428.830
I78 3. TRANSMISSION EXPENSES
179
lRo R5O Omtion Srrmruision and Enpinmins
l8l 851 Svstem Control md tlad DisDatchinp
182 852 Communication SvstemExDenses
853 Comnresmr Starion Iatnr md Exoenses
184 854 Gas forComoressorStation Fuel
lR5 R55 (hher Frrel end Powr for Comnrssor Stations
185 856 Mains Exmnses 6.924 1.641
t87 857 Measurins and Resulatins Station ExDenses t(
858 Tmnsmission and Cmnession of Gas bv Othen
189 859 Other Exmses
190 860 Rents
tsl TOTAI- Omtion (F-ntrTotal of lines 180 thru 190)6.92i I,65
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FERC FORM NO. 2 (ED t2-88)Page323
!,lame of Respondent
Avisu Corp.
fhis Reoort ls:,l) fr noorigtnut
'.2) fl A Resubmission
Date of Report
(Mo, Da, Yr)
April 30, 2002
Year of Repon
December3l,200l
GAS OPERATION AND MAINTENANCE EXPENSES
-m€
rlo.
Amount
Amount for
C\rrent Year
lhl
Amount for
Previous Year
3. TRANSMISSION EXPENSES (Continued)
V{aintme
l9:861 Maintenance Sunervision and Ensineerins
l9z 862 Maintenance of Stnrchrra end Imnmvemelts
t9t 863 Maintenmce of Mains 8.8&
l9(864 Maintenance of Comoressor Station EouiDment
865 Maintenmce of Masurins and Res- Station Fauinment I 2-08:
l9t 866 Maintenance of Communication Eouiomnt 66.53t 94-r3a
9!R6? Mainterance nf other Fnninlrcni
2il TOTAL Meintenene (F-nttr Totel of lines 193 thn 199)75-4ll tM-22'
20t TOTAL Transmission Exnenses (Enter Total of lines l9l and 2fi))82-341 107.87:
2It 4. DISTRIBUTION EXPENSES iii,
20-.)rmiion ::,:
2U 870 Ooeration Suoervision and Eneineerins 482-721 459.81t
m:871 DistributionLoadDisDatchils 17,01:t5-24(
2U 872 Comprcssor Statioo [-abor aDd Exoenses
m7
208
,ato
873 ComnrcssorStetion Fuel andPows 0
874 Mains and Services Exnenses 2.596.O2t 2.t62.65:
875 Mersrtdnq and Reqrlntino Stetion Ermnses-Genml 57.91t 54.51I
2to 876 Mmurins md Remlatins Station Exmnses-lndustrial 5-832 7.524
877 Measurins atrd ReEulatinc Station Exoenses-Citv Gate Check Station 74.255 95.07r
2 878 Meter md Houc Reqrlator Exmses 980-61 9?6^98s
3 879 Customer Installatiom Exnenss 1.509.491 1.491.534
4 880 OtherExoenses t.490.621 835.921
5 881 Rents 64-Ota 20.8i
216 TOTAL Ooeration (Enter Total of lines 2(X thru 215)7.278.50i 6.r 19.37:
2t7 Vlaintemce
218 885 Maintenance Suoervision and Ensineerine 30.76:39.76t
2ts 886 Maintenance of Struchues and Imomvemens 1_174 554
220 887 Maintenme of Mains t-266.221 t-2ffi.67i
22t 888 Maintenance of Comoressor Station Eouioment
222 889 Maintenmce of Mezs- and Rep Sta- Fnuin--Genml 11A.A2t 285.35S
223 890 Maintenance of Mess. and Rep- Sta- Eouio.-lndustrial 144.173 120.35 r
2U 891 Maintenance of Meas. and Res. Sta. EouiD.-Citv Gate Check Station 56.55r 72.4
225 892 MaintemceofSmies 274-39(266,-898
226 893 Maintenance of Meters and House Requlators 489.129 535,50{
894 Maintenmce of Other Fauinment 351
228 TOTAL Maintmance (Enter Total of lines 218 thm 227)2-587.#2-521.891
),29 TOTAL Distribution Expenses (Enter Total of lines 216 ad228\9.865.91i 8-641
2fi 5- CIISTOMF-R ACCOIINTS EXPENSFIS
231 )oenrtion
272 901 Supervision 59.67 335-37
233 902 Meter Rerdins F-xmnses l.7l3.l7t 1.135.39"
234 903 Customer Records and Collection Exoenses 5.288.59!4.934.429
235 904 UncollectibleAccounts 1.630.68t I _O90.65(
216 905 Misellmmus Customtr Acmunts Exlmsr 678. I 3(t63.50:
237 TOTAL Customer Accounts Exoenses (Enter Total of lines 232 thru 236)9.370.26i 8.259.35t
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FERC FORM NO. 2 (ED 12-88)Prge3V4
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tlame ofRespondent
Avista Corp.
fhis Reoon Is::l) fi moigi"a
'.2) [ A Resubmission
)ate ofRepon
'Mo, Da, Yr)
atpril 30,2002
Year oiReporr
December 31. 2001
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for orevious vear is not derived from oreviouslv reDorted fizures. exDl.in in footnotes.
Lin€
No.
Amount
Amount for
Current Year
t r,l
Amount for
Previous Year
I t.l
6 CIISTOMER SERVICE AND INFORMATIONAL EXPENSES
239 )neration
2An 907 Supervisionul908 Customer A.ssistance Exnenses 2.t82.s52 987.47'.
242 909 Informational and Instructional Exoenses I 18.75 74.t51
241 9lO Miscellanmus Crrslomtr Seruice md Infomtional Exnenses 75.062
244 TOTAL Customer Sewice and Information ExDenses (Lines 240 thru 243)2.376.369 .06 r.62t
u5 7. SALES EXPENSES
246 )mmlion
24'.9l I Sumision 26.71:I.06!
241 912 Demonstmtng md Sellinp Exnenses 557.151 t322-tS:
244 913 Advertisins Exnenses 89,81r 75.48t
916 Misellanmrs Sales Exmnss l2t -74",
251 TOTAL Sala Erms (Enrcr Total of lines 247 thru 250)195-Ogt .398.70:
25t 8. ADMIMSTRATIVE AND GENERAL E)GENSES
251 Cmtion
25t 920 Admidstrative and General Salaries 3.808.49:4.359.30i
921 (ffieSunnlix and Ermnsa 1.719.94a 2-Ot 4-51
25t (t ess) (922) Administrative Exoenses Transferred-Cr.-20.9!(39.E16',
24",923 Outside Sewices Emoloved 2.530.351 2.759.52(
251 924 Property Insurance t27,76',95,74:
25\925 Iniuries and Damaoes 559-4r 161
2ffi 926 Emnlovee Pmsions and Benefits 450-552 717.08(
261 Q27 FmnchiceRr 9t1.94t
262 928 Rmlertow Commission Ermses 938-r l -058-o3J
261 [-ess) (929) Duoliete Charses-Cr.
264 930.1 General Advmisine ExDeoses t.962 2.6tC
265 93O.2 Miscellaneous General Ermss !r7^531 1.o38.92:
26 931 Rens z.Ut9.r95 2.040.80r
TOTAI - Omtion rFnrtr Total of linas 254 thn 266)t1.222.I 5.32t1-56 I
268 \tlaintenance
769 935 MaintenanceofGeoeral Plant 765.3li 815.995
270 TOTAL Administmtive md Gmeral Exo (Total of lines 267 and 269)l3-988-21 r t6-t42-55e
271 TOTAL Gas O. and M. ExD (d-jl,tes9.177,201,229,237,244,251,and 270)250.4t3.t92 t77.740.668
NUMBER OF GAS DEPARTMENT EMPLOYEES
l. The d^ta on nurrber of employees should be reported
for the payroll period eoding nearcst toocloh3l,or
any payroll period edirg 60 &ys before or after Octo
ber 31,
2. If the rcspondent's payroll forthereportitrgperiod
includes any special coustrction personnel, include such
emolovees on line 3. and show the number of such soecial
co$truction employees in a foonote.
3. The number of employees assignable to the gas
dcpanment from joint ftrnction of combination utilities
may be d€tsrnircd by estimate, on the basis of ernployee
equivalens. Show the estimated Dumbrof equivalent
employees attdbuted to the gas departmentfromjoint
functions.
Pavmll Priod F-ndgl lT)ate) Dffiber 3l- 2mI
2. Total Remlr Full-Time EmDlovees 303
3. Total Part-Time and Ternoorarv Emolovees allocation of General Emolovees 6
4- Totel Emnlove 369
FERC FORM NO. 2 (ED 12-88)Ptge325
Name of Respondent
Avista corporation
This Reoort ls:(1) EI An Orisinal
(2) E A Resubmission
Date of Report
(Mo, Da, Yr)
April30,2002
Year of Report
Dec. 31, 2001
GAS PURCHASES (Accounts 800. 800.1. 801. 802. 803. 804. 804.1. 805. 805.1. 805.2)
1. Provide total for the following accounts:800 Natural Gas Well Head Purchases
The totals shown in columns (b) and (c) should agree with
the books of account. Reconcile any differences in a foot-800 Natural Gas Well Head Purchases, lntracomp note.
Transfers
801 NaturalGas Field Une Purchases
802 NaturalGas Gasoline Plant Oullet Pur-
chases803 Natural Gas Transmission Line Purchases
804 NaturalGas City Gate Purchasas804 LiquefiedNaturalGasPurchases
805 Other Gas Purchases
805 Purchase Gas Cost Adjustments805 lncremental Gas Cost Adiustments
2. State in column (b) the volume of purchased gas as
finally measured for the purpose of determining the amount
payable for the gas. lnclude cunent year receipts of make-
up gas that was paid for in prior years.
3. State in column (c) the dollar amount (omit cents) paid
and previously paid for the volumes of gas shown in col-
umn (b).
4. State in column (d) the average cost per Mcl to the
nearest hundredth of a cent. (Average means column (c)
divided bv column (b) multiolied bv 100.)
Line
ruo.l
Account Title
(a)
Gas Purchased Dth
(14.73 psia at 6OP f
tb)
Cost of Gas
(!n dollars)
(cl
Average Cosl Per Dth
(fo nearest .01 of a cent)
6)
o1 800 - Natural Gas Well Head
Purchases
02 800 - Natural Gas Well Head Pur-
chases. lntracomoanv Transf .
03 801 - NaturalGas Field Line
Purchases
o4 802 - Natural Gas Gasoline
Plant Outlet Purchases
05 803 - Natural Gas Transmission
Line Purchases
06 804 - Natural Gas City Gate
Purchase 34.861.189 220.$6.277 6.32
07 804 - Liquelied NaturalGas
Purchases
08 805 - Other Gas Purchases
205,460
09 805 - Purchased Gas Gost
Adirrslmanls 0.745.OAA)
't0 805 - lncrementalGas Cost
Adiuslmenls 0
11 TOTAL (EnterTotal of lines 01
thru '10)34.861.'t89 212.946.649 6.11
Notes to Gas Purchases
1) Natural gas city gate purchases, as referenced on line No. 6,
include storage activities and sale for resale.
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FERC FORM NO.2 (ED 12-87)Page327
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FERC FORM NO.2 (ED 12-96)Page 334
Name ol Hespondent
Avista Corporation
I nrs Heoon ts:
[| An originat
tr A Resubmission
uare or Hepon
(Mo, Da, Yr)
April30, 2002
Year ol Hepon
Dec. 31, 2001
Other Gas Suoolv Exoenses (Account 813)
1 Report other gas supply sxpenses by descriptive titles that
clearly indicate the nature ol such expenses. Show
maintenance expenses, revaluation of
monthly encroachments recorded in Account 1 17.4
and losses on settlements ol imbalances and gas losses
not associated with storage separately. lndicate the
functional classification and purpose ol property to which
any expenses relate. List separately items of $250,000
or more.
[ine
No.l
Description
lal
Amount
(in Dollars)
1b:
'l
2
3
4
5
6
7
8
I
10
11
12
13
't4
15
16
17
18
'tq
(ias Hesource Management
Labor
Transportation
Misc. Other Expenses (Phone Bills, Professional Services, Gas Reports, Travel, Etc.)
Canadian Regulatory Atlairs
Labor
Misc. CIher E4censes (Phone Bills, Professional Services, Gas Reports, Travel, Etc.)
Send Out Modeling
Maintenance Fees
FERC Gas Case
l-abor
Misc. Other Elpenses (Phone Bills, Prolessional Services, Postage, Etc.)
74,341
4U
2s,663
u,775
41,501
31,668
35,547
73,562
20 rOTAL 317.541
Name ol Respondent
Avista Corp.
fhis report is:
i1) (X)An Original
12) O A Besubmissio
Date of Beport
(Mo, Da, Y)
April30,2002
Year of Report
Dec. 31, 2001
MISCELLANEOUS GENERAL EXPENSES (Account 930.2) (Gas)
1. Provide the hfomation requested below on miscellaneous
general epanses.
2. For Other Expenses, show lhe (a) purpose, (b) recipienl and (c) amount ol such items.
Usl separalely amounts ol $250,000 or more however, amounls less than $250,000 may
be grouped il lhe number ol items ol so grouped is shown.
Line
No.
Description
/al
Amount
tht
1 lndrclru Aecmialinn f'hrac IOQ?O 251 74-A31
2 Experimental and General Research Expenses
a. Gas Research lnstitute (GRl)
h r)ihar
3
Dublishing and Distributing lnlormation and Reports to Stockholders; Trustee, Registrar and Transfer Agent
imc anr{ Fynonqac and f)lhar Frnanccc nI Saruinin^ 6rll.l.h.lin^ Saarrrilia< ^{ tha PacMnda^l 336.242
4
5
6
7
8I
10
11
12
13
14
15
16
17
't8
19
20
21
22
23
24
25
26
27
28
29
30
31
32
38
34
35
36
37
38
39
40
41
42
43
44
45
/t6
47
48
49
50
51
Other Expenses
Dlrectors Fees and Expenses (0930.27)
Erik J. Anderson
Kristianne Blake
David A. Clack
Sarah M. R. Jewell
Jessie Knight
John F. Kelly
Eugene W. Meyer
Bobby Schmidt
Larry A. Stanley
R. John Taylor
Dan Zaloudek
Community Relations (0930.22)
Labor
167 ltems under $5,000
Educational - lnformatlonal (093{r.23)
Labor
13 ltems under $5,000
WA/ID Fet WI/IO Exp
9,583 586
8,3/O 0
6,9s0 s52
6,146 197
3,514 1,158
5,488 lEo
6,604 2276
3,660 r,498
7205 0
7.11A U7
OF/CAR6i OBCAExp
4,894 300
43s9 0
3.549 2A2
3,t:B 't01
1,795 591
2,8&. 91
3,475 1,163
1,869 755
3,679 0
3,650 75
5,12.
Total 69,960 7.945
'I 17,691
47,925
Other Mlecollaneoua Genera! Expensee (0930.29)
Labor
1 ltem under $5,000
Spokane Regional Business Center
61,464
15,363
12,599
1 1,333
9,583
7,0s8
8,561
13,718
7,792
10,884
1 1,020
9,780
't12,676
49,428
44,446
3,479
56,450
-195
5,209
52 TOTAL 800,30:
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FERC FORM NO. 2 (ED. 12-96)Page 335
Name of Respondent
Avista Corporation
This Reoort Is:(l) tr Anoriginal
(2) n A Resubmission
Date of Report
(Mo, Da, Yr)
Apil30,2002
Year of Report
completed
Dec.31,2001
DEPRECIATION, DBPLETION, AND AMORTZATION OF GAS PLANT (Accounts 403,4U1,4M.2,4U3,405)
(Exceot Amortization of Acquisition Adiustments)
1. Report inSection Athe amotmtsof depreciation
expense, depletion and amortization for the accounts in-
dicated and classified ngcolding to the plant functional
groups shown.
2. Report all available infonnation called for in Sec-
tion B for the report y ar 197 l, 197 4 and every fifth year
thereafter. Report onlv annual dranges in the intervals
between the report years ( I 97 1, 197 4 and every fi fth year
thereafter).
Report in column (b) all depreciable 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 ttrose pre-printed in
column (a). Indicate at the bottom of Section B the
Section A. Summary of Depreciation, Depletion, and Amortization Charges
Line
No.Functional Classifi cation
lal
Depreciation
Expense
(Accorurt 403)
(b)
Amortization and Deple-
tion of Producing Natural
Gas Land and Land
Rights (Account 404.1)
b)
Amortization of
Underground
Storage Land and Land
Rights (Account4U.2)
ut
1 htansible Dlant)Prodution olant. manufactured eas 4.456
3 Production and gathering plant,
natural sas
4 Products extraction olant
5 Undersormd eas storase olant 433.835
6 Jther storase olant
7 Base load LNG terminating and
nror:essing nlant
8 I'ransmission nlant 69.093
9 Distrihution nlant 11 7r6-581
10 3eneral plant 442.765
l1 Common General olant-Allocated 939.567
t2
t3
t4
15
t6
t7
18
19
20
2t
a')
23,u
')<IOTAL t3-606-297 0 0
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FERC FORM NO.2 (ED. 12-86)Page336
Name of Respondent
Avista Corporation
This Reoort Is:(1) E Anorisinal
(2) ! A Resubmission
Date of Report
(Mo, Da, Yr)
Aplil30,2oO2
Year of Report
)ec.3l,2OOl I
DEPRECIATION, DEPLETION, AND AMORTZATION OF GAS PLANT (Accounts 403,4U.1,4M2,4M.3,405)
(Except Amortization of Acouistion Adiustments) (Continued)
numner in which colurnn (b) balances are obtained. If
average balances, state the method of averaging used.
For colurnn (c) report available information for each plant
functional classification listed in column (a). If composite
depreciation accounting is used. Reportavailable infor-
mation called for in columns (b) and (c) on this basis.
Where the unit-of-production method is used to determine
depreciation charges, show at the bottomof Section B
any revisions made to estimated gas reseryes.
3. If provisions for deprciation were made during the
year in addition to depreciation provided by application
of reported rates, slate at the bottomofSectionB the
amounts and nature of the provisions and the plant items
to whichrelated.
Section A. Summarv of Deoreciation. Depletion- and Amortization Charses
Amortization of
Other Limited+erm
Gas Plant
(Accorurt 404.3)
(e)
Amortization of
Other Gas Plant
(Accotmt 405)
(fi
Total
O ro0
/q'l
Functional Classifi cation
(a)
Line
No.
546.456 546.456 Intansible Dlant I
4.456 Prodution olanl marrufactured eas ,)
Production and gathering plant,
natural sas
J
Products extraction olant 4
433.835 Undersomd sas storase olant 5
Other storase olant 6
Base load LNG terminating and
nrocessino nlant
7
69.093 fransmission olant 8
11.716.581 Distribution olant 9
M2.765 General olant l0
939.567 Common general plant-Allocated 11
t2
l3
t4
l5
l6
t7
l8
t9
20
2t))
23u
546.45C 0 14.152-753 TOTAL 25
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FERC FORM NO.2 (ED. 12.86)Page337
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Name of Respondent
Avista Corporation
This Reoort Is:(l) B An original
(2) ! AResubmission
uate oI Keport
(Mo, Da, Yr)
Apm28,2002
Year ot Report
- complete
Dec. 31,2001
Line
No.
Functional Classifications
(al
Depreciable
Plant Base
(Thousands)
(b) ( 1l
Applied
Depr. Rate(s)
@ercent)
(c)
I)
3
4
5
6
7
8
9
10
tl
t2
t3
L4
l5
t6
t7
18
19
20
2l
),)
23
24
25
26
27
28
29
30
3t
32
33
34
35
36
37
38
39
40
4L
42
43
M
45
46
47
48
49
Underground Gas Storage Plant: (2)
350
351
352
352.2
352. I (Leasehold Inrprovercnts)
352.3
353
354
355
356
357
Total
koduction - Manufactured Gas:
2305
23tt
Total
Transmission Plant:
2366
2367
2369
2370
Total
Distrihution Plant:
375.1
376
378
379
380
381
382
383
384
385
387
Total
Intangible
General Plant:
390.1
390.2
391.1
393
394
395
397
398
Total
Total Gas Plant
24
1,066
5,545
r66
254
6,122
799
t,730
547
431
1.597
2.05?o
1.757o
2.$OVo
2.53Vo
2.22Vo
2.54Vo
2.067o
2.327o
2.667o
2.97?o
2.777o
2.807o
1.8070
2.607o
2.6OVo
3.457o
7.lO4o
3.20Vo
2.99Vo
3.78Vo
3.47Vo
3.86Vo
2.687o
2.O7Vo
2.27Vo
2.53Vo
4.OBVo
5.4OVo
2.00Vo
2.147o
2.OOVo
6.3O4o
2.4070
4.96Vo
4.487o
8.767o
2.597o
t8,2,82
67
t43
211
8
L,232
44
25
1,308
492
203,533
3,860
1,688
146,637
46,828
0
0
0
2,114
I
4U),t)l
3,052
2,366
t2
l0
84
1,912
864
1,497
34
b,l 19
434.783
IIERC FORM NO.2 (ED. 12.86)Page 338-4
This Page Intentionally Left Blank
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Name or Hesponoent
Avista Corp.
I nrs HeDon ls:(1) 8An Original(2) ;-']AResubmission
Date of Report(Mo, Da, Yr)
04t30t2002
Year of Report
Dec. 31, 2001
PABTICULARS CONCERNING CERTAIN INCOME DEDUCTIONS AND INTEREST CHARGES ACCOUNTS
Repod the information specified below, in the order given, lor the respective income deduction and interest charges account. Provide a subheading lor
each account and a total for the account. Additional columns may be added if deemed appropriate with respect to any account.
(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 lncome Deductions: Report the nature, payee, and amount of other income deductions tor the year as required by Accounts 426.1,
Donations; 426.2, Lile lnsurance; 426.3, Penalties; 426.4, Expenditures lor Certain Civic Political and Belated Activities; and 426.5, Other Deductions, of
the Uniform System of Ac-counts. Amounts of less than 5% ol each account total tor the year (or $1 ,000, whichever is greater) may be grouped by
classes within the above accounts.
(c) lnterest on Debt to Associated Companies (Account 430) - For each associated company to which interest on debt was incurred during lhe 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) Oher lnterest Expense (Account 431) - Report particulars (details) including the amount and interest rate lor other interest charges incurred
during lhe year.
Ltne
No.
Itgm(a)Amount(b)
1 AcCt. 425.00 . MISCELLANEOUS AMORTIZATIONS
2 Gas plant acquisition adj. applicable to purchase of
3 CP National, Oregon & California distribution
4 system. Contra acct - 'l 15.00 1,323,907
5 TOTAL - 425.00 1.323.907
6
7 Acct. 426.10 - DONATIONS
8 Spokane Symphony 20,000
I Concerned Businesses, lnc.15,000
10 336 ltems under $10,250 169,973
11 TOTAL 426.10 204,973
12
13 Acct 426.20. LIFE INSURANCE
14 Off icers' Lils lnsurance 97,1 51
15 Supplemental Executive Betirement Program 1,419.000
16 TOTAL 426.20 1,516,151
17
18 Acct. 426.30 - PENALTIES
19 IRS Refund-WWP Employees Retirement Plan -'t02.758
20 lntemal Revenue Service 64,268
21 Washington Dept ol Revenue 28,333
22 Commonwealth of Massachusetts 17,998
23 Department of Tax & Revenue 1,399
24 United States Treasury 10,312
25 Arizona Department of Revenue 1,533
26 12 ltems under$1,088 672
27 TOTAL 426.30 21,757
28
29 Acct 426.40. EXPENDITURES FOR CERTAIN CIVIC,
30 POLITICAL AND REI.ATED ACTIV]TIES
31 Lobbyist 519,889
32 'l 14 ltems under $42,250 325,094
33 TOTAL 426.40 844,983
34
35 Acct. 426.50 - Other Deductions
36 Executive Def erred Compensation -196,869
37 Downtown Fuel Cell Betirement Reserve 820,645
38 Kettle Falls Reserve Amortization -228,480
39 TOTAL 426.50 395,296
40
41
FEBC FORM NO.2 (ED.12-84 Page 340
Name or Hesponoenr
Avista Corp.
I nrs Heoon ts:(1) E]an orisinat(2) l-1A Resubmission
Date of Reoort(Mo, Da, Yi)
o4BOt2002
Year o, Hepon
Dec.31, 2001
PARTICUI-ARS CONCERNING CERTAIN INCOME DEDUCTIONS AND INTEREST CHARGES AGCOUNTS
Report the information specified below, in the order given, for the respective income deduction and interest charges account. Provide a subheading lor
each acc,ount and a total lor lhe account. Additional columns may be added if deemed appropriate with respect to any account.
(a) Miscellaneous Amortization (Account 425): Describe the nature ol items included in this account, the contra account charged, the total ol
amortization charges for the year, and the period of amortization.
(b) Miscellaneous lncome Deductions: Report the nature, payee, and amount of other income deductions for the year as required by Accounts 426.1,
Donations; 426.2, Lile lnsurance; 426.3, Penalties; 426.4, Expenditures for Certain Civic Political and Related Activities; and 426.5, Other Deductions, of
the Uniform System ol Accounts. Amounts of less than 5% ol each account total for the year (or $1 ,000, whichever is greateQ may be grouped by
classes within the above accounts.
(c) lnterest on Debt to Associated Companies (Account 430) - For each associated company to which interest on debt was incurred during the year,
indicate the amount and interest rate respectively for (a) advances on noles, (b) advances on open account, (c) notes payable, (d) accounts payable, and
(e) other debt, and total interest. Explain lhe nature of other debt on which interest was incuned during the year.
(d) Oher lnterest Expense (Account 431) - Report particulars (details) including the amount and interesl rate for other interesl charges incurred
during the year.
Ltne
No.
Item(a)Amount(b)
1 Acct /til1.00 - OTHER INTEREST EXPENSE
2 (vARrous TNTEREST RATES)
3 Customer Deposits 118.77'.\
4 Misc. Oregon Deferrals & Amortizations 89,709
5 WA,/ID Gas Amortizations 45,565
6 Miscellaneous Accts Payable 185,116
7 Executive Def erred Compensation 75,444
8 Centralia Gain 67.693
I Clark Fork license 136,437
10 lnterest Accrual on DSM Program Liability -60.614
11 Other Miscellaneous 14,071
12 TOTAL 431.00 672,192
13
14
15
16
t7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33u
35
36
37
38
39
40
41
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IFERC FORM NO.2 (ED. 12-87)Page 340.1
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Year Ending
Dec.31,2001
This report is:
IX]An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Y0
April30, 2002
1. Repo,t below details of regulatory 2. ln column (b) and (c), indicate whethel the expenses were
assessed by a regulatory body or were otherwise incurred by
the utility.
year (or in previous year, if being amoltized) relating to lormal cases
a regulatory body, or cases in which such a body was a party.
Total
Expenses
to Date
Deferred in
Account 182.3 al
Beginning of
Year
DescriPtion
(Fumish name of regulatory ornmission or body, the
docket num&r, and a de*ription olthe case.)
Assessed by
Regulalory
Commission
Expenses
of
Utihty
ENERGY REGULATORY COMMISSION
Cases Doc *s:RPo1-400,RP01-4l6,RP 01-232,CP01-153
8,cP01 -141,RP0G506,CP01.49,CP0G14 1,CP0G138
t-g]3,RP01-380,RP99-518,CP01-361,RP95409,RMo.|-9
-94.cP01.438.CP@-04,8P01 -6 1 3,RP02-24
, RP00-506,CP@-24, RPO2-1 1 6,RP02-69
gectric-oockel *s: UE-(m972,UE{02066,UE{10295,
.010395,UE-010510,UE-010839,UE-01 1 1$,UE-01 1 352,
1353,UE-01 1 47s,UE{1 1476,UE-OI 1 514,UE01 1591,
Eleclric- ockel *S:AVU-E{0-06,AVU-E{G09,AVU-E{&l I
{4,AVU-E{1 -05,AVU-E{1-06,AVU-E-01 -07
{1 -08,AVU-E-01 -09,AVU-E{1 -1 o,AVU-E{1 -1 1
-12,AVU-E-01 -1 3,AVU-E-o1-14,AVU-E{1 -1 5
Gas - Docket *S:AVU-G-oG1,AVU-G-00-4,AVUG-0G5
*s: UM-903. UM-1011, AR-357, AR-427
1,649,9'1 1
142,674
186,791
1
2
3
4
5
6
7
I
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
FERC FORM NO.2 (ED. 12-96)Page 350
Name of Respondent
Avista Corp.
XlAn Original
lA Resubmission
Date ol Report
(Mo, Da, Y)
April 30,2002
3. Show in column (k) any expenses incuned in prior years 5. List in column (l), (g), and (h) exp€nsos incurred during year
that are being amortized. List in column (a) the period of which were charges currently to income, plant, or other accounls.amorlization. 6. Minor itoms (less than $250,000) may be grouped.
4. ldentify separately all annual charge adiustments (ACA).
Deferred in
Account 182.3
End o, Year
1,649,91 1 4
5
t,
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11
12
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FERC FORil NO.2 (ED. 12-96)Page 351
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Name of Respondent
Avista Corp.
This Reoort Is:(l) tr An original
(2) tr A Resubmission
Date of Report
'Mo, Da, Yr)
A,pril 30, 2002
Year of Report
Dec.3l,2001
DISTRIBUTION OF SALARIES AND WAGES
Report below the distribution of total salaries and wages
for the year. Segregate amounts originally charged to clear-
ing accounts o Utility Departments, Construction, Plant
Removals- and Other Accounts. and enter such amounts in the
appropriate lines and columns provided. In determining this
segregation ofsalaries and wages originally charged to clear-
ing accounts, a method of approximation giving substantially
correct results mav be used.
Line
No.Classification
lnl
Direct Payroll
Distribution
thl
Allocation of
Payroll Charged
for Clearing
Accounts
(c)
Total
(dt
I Electric
1.679.835
2 Cperation
3 Production
4 Transmission
5 Distribution
4
I
6 Customer Accounts
7 Customer Service and Informational
8 SaIes 572.954
9 Administrative and General
0 TOTAL Ooeration (Enter Total of lines 3 thru 9)
734.9t7
I Maintenance
2 Production
J Transmission
4 Distribution
841.4225Administrative and General
l6 TOTAL Maintenance (Enter Total of lines 12 thru 15)
t7 Iotal Operation and Maintenance
l8 Production (Enter Total of lines 3 and 12)
l9 Transmission (Enter Total of lines 4 and 13)2.414.752
20 Distribution (Enter Total of lines 5 and 14)8,288,677
4,273,0402tCustomer Accounts (Transcribe from line 6)
22 Customer Service and Information (Transcribe from line 7)
23 Sales (Transcribe from line 8)572,954
24 Administrative and General (Enter Total of lines 9 and 15)
25 TOTAL Ooer. and Maint. Ootal of lines l8 thru 24)36.494.t32 1.498.882 37.993.014
26 Gas
27 f)naation
28 Prnrilrctinn - Manrrfictrrred Gas
29 Production - Natural Gas (Including Expl. and Dev.)
30 Other Gas Suoolv I
3l Storase. LNG Terminalins and Processins
32 Transmission
JJ Distribution
34 Customer Accounts 40
35 Customer Service and Informational
36 Sales 324.08t
37 Administrative and General
12.l
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38 TOTAL Ooeration (Enter Total of lines 28 thru 37)
39 Maintenance
40 Prodrrction
41 Production - Natural Gas
42 O0rer Gas Suoolv
43 Slnraoe I NG Teminalins and Processinq
44 Transmission 326
45 l)i sfrihrrtion 372
46 Administrati ve and General 209
47 TOTAL Maintenance (Enter Total of lines 40 thru 46)2.214.548
FERC FORM NO.2 (ED 12-88)Page 354
\ame oI Kespondent
Avista Corp.
Ihrs ReDort ls::l) tr Anoriginat
|2) tr A Resubmission
Date of Report
(Mo, Da, Yr)
April 30,2002
Yeiu oI Keport
Dec. 31,2001
DISTRIBUTION OF SALARIES AND WAGES (Continued
Line
No.Classification
lal
Direct Payroll
Distribution
(bt
Allocation of
Payroll Charged
for Clearing
Accounts
(c)
Total
(d)
Gas (Contiuued)
48 lotal Operation and Maintenance
49 Production - Manufactured Gas (Enter Total of lines 28 and 40)
50 Production - Natural Gas (Including Expl. and Dev.) (Total
of lines 29 and 4l)
5l Other Gas Supply (Enter Total of lines 30 and 42)39 l,504
52 storage, LNU, l emunallng and rrocessrng ( l otal oI unes
31 and 43)
53 Transmission (Enter Total of lines 32 and M\
54 Distribution (Enter Total of lines 33 and 45)70
55 Customer Accounts (Transcribe from line 34)
56 Customer Service and Informational (Transcribe from line 35)
57 Sales (Transcribe from line 36)I
58 Administrative and General (Enter Total of lines 37 and 46)3.893.74r
59 I U I AL UDeratilon and Marnt. ( I otal oI lrnes 4y thru f !14.4t7 i72 l4 128
60 Other Utilitv Deoartments
6l fion and Meinfenance
62 TOTAL All Utilitv Deot. (Total of lines 25.59. and 6l)50.905.088 t.916;154 52.82 .842
Utility Plant&Constnrction /Bv I Itilitv f)en2rtment()
65 Electric Plant 7982552 1.502.096 19.484.648
66 Gas Plant t4t 284.;65 5.567.306
67 Other
68 TOTAL Consuuction (Enter Total of lines 65 thru 67)23.265.193 1.786_76t 25.05 954
69 Plant Removal (Bv Utilitv DeDartment)
70 Electric Plant 6s2.84t (2.340 650,50 r
7l Gas Plant 84.974 773 85.747
72 O&er
73 TOTAL Plant Removal (Enter Total of Iines 70 thru 7i 737.81 o/736.248
74
75
76
77
78
79
80
8l
82
83
84
85
86
87
88
89
90
9l
92
93
94
95
96
97
Other Accounts (Specify):
Stores Expense (163)
Prepayments (165)
heliminary Survey and Investigation ( 183)
Small Tool Expense (184)
Miscellaneous Deferred Debis (l 86)
Capital Stock Expense (214)
Merchandising Expenses (4 I 6)
Non-operating Expenses (4 17)
Expeuditures of Certain Civic, Political and Related
Activities (426)
Purchase and Stores Expense (980)
Transportation Expense (98 I )
Cafeteria Expense - Labor (984)
Spokane Central Operating Facility Expense (985)
Clark Fork Relicensing (987)
TOTAL Other Accounts
0
0
26,t78
65,067
55,@2,628
0
22,648
953,62
268,918
r,2t5,29t
r,39t,499
0
680,996
523,34r
@.240.228
176
176
1,783
6,810
27,775
l8
1,517
2t,366
963
(1,197 ,493.
(1,371,565.
0
(676,699.
(516,775.
3.701.948
t76
t76
27,96t
7 t,877
55, r 20,403
l8
24,165
975,028
269,881
t7,798
t9,934
0
4,297
6.566
56.538.280
rOTAL SALARIES AND WAGES t35.148.324 0 135 l4t \24
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FERC FORM NO.2 (ED 12-88)Page 355
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Name of Bespondent
Avista Corp.
This report is:
IX]An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Yr)
April 30,2002
Year Ending
Dec. 31, 2001
CHARGES FOR OUTSIDE PROFESS]ONAL AND OTHER CONSULTATIVE SERVICES
1. Report the information specified below for all charges made during lhe year
ncluded in any accounl (including plant acclunts) for outside consultaiive and
)ther professional services. These services include rate, manag€ment,
:onstruction, engineering, research, linancial, valuation, legal , accounting,
curchasing, advertising, labor relations, and public relations, rendered lor ihs
respondent under written or oral arrangement, lor which aggregato paymenls wee
nade during the year to any corporation partnership, organizalion ol
any kind, or individual (other lhan for services as an employee or for
payments made lor medical and relaled services) amounting to
more than $250,000, including payments for legislative services,
except those which should be reported in Account 426.4
Exryndrtures lor Ceftain Civic, Political and Related Activities.
(a) Name ol person or organization rendering seruices.
(b) Total charges tor the year,
2. Designate associated companies with an asterisk in column (b).
Line
No.
Description
(al {b)
Amount
(in dollars)
1c'l
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
Acres lntemational Corp
Analytical Surveys Inc.
Deloitte & Touche
Dorsey & Whitney, LLP
Ecos Consulting
General Physics
Hanna & Associates, lnc.
Heller Ehrman White
Land & Water Consulting, lnc.
Marsh Advantage America
Network Design & Managemenl
Paine Hamblen Coffin & Brooke
Reid & Priest
BLG lntemational
Van Ness Feldman
646,717
982,484
729,199
732,255
2,336,427
320,900
1 ,315,905
509,057
352,572
302,322
803,948
1,881,699
96't,88'l
469,307
485,587
FERC FORM NO.2 (ED.12-96)Page 358 [Next page is 512]
Name ol Hespondent
Avista Corporation
I nts HeDon ts:J(1) lxl An Original
(2) tr A Resubmission
uare or Hepon
(Mo, Da, Y0
April30,2002
Year or F{epon
Dec. 31, 2001
GAS STORAGE PROJECTS
Storaoe Ooerations (ln Dth) (Note: lniections and withdrawals are based on Aoencv
Aoreement ano slate t encnmarK Flllnos. Aoenl manaoes storaoe lacrlrw and uses I as
neecled to meet ComDanv reouirements. Scheduled iniectionsnilithdrawals are used)
to determine Davment arranoements onlv.)
1 Gas Delivered to Storaoe
2 ,anuarv 0
3 Februarv 0
4 March 0
5 April 0
6 May 231.732
7 June 534,786
E Julv 534,786IAuoust534,786
10 seDtember u7,61
11 october o
12 November o
13 December o
14 TOTAL (Enter Total ol Lines 15 Thru 26)2.163.701
15 Gas Withdrawn lrom Storaoe
16 Januarv 757,167
17 February I145.393
1E March 267,236
19 ADril ag,oT7
20 Mav o
21 une o
22 ulv o
23 Auoust o
24 Seotember o
25 October o
26 November 89.131
27 December 534.786
28 TOTAL (Enter Total oI Lines 29 Thru 40)2.142.7W
FERC FORM NO.2 (ED 12-88)Page 512
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Name oI Hesponoent
Avista Corporation
lnts Heoon ls:(1) E An Original
(2) tr A Resubmission
Date ol Hepon
(Mo, Da, Yr)
April30,2002
Year ot Hepon
Dec. 31, 2001
GAS STORAGE PROJECTS (Continued)
Ln€
No.
Item
h)
I OIat
Amountbt
Storaoe Operations (ln Dekatherms)
42 Too or Workino Gas End of Year (Note)1.559.793
43 Cushion Gas (lncludinq Native Gas)6.586.667
4 Total Gas in Reservoir (Enter Total of Line 42 and Line 4i!)8.146.460
45 Certif icated Storaoe Caoacitv 51.742.663
46 Number ol lniection - Withdrawal Wells 43
47 Number of Observation Wells 48
48 Maximum Dav's Withrawal from Storaqe
49 Date of Maximum Davs'Withdrawal
50 ING TerminalComoanies (ln McO
51 Number of Tanks
52 3aoacitv of Tanks
53 ING Volumes
54 r) Received at "Shio Rail'
55 r) Transferred to Tanks
56 c) Withdrawn from Tanks
57 il'Boil Offl Vaoorization Loss
58 r) Converted to Mcf at Tailoate of Terminal
Note: The above information represents the company's one-third share of Jackson Prairie Storag
Note: Working Gas at Year End represents the amount of gas available lo the Company under thr
"Benchmark lnjectionMithdrawal Schedules for JP Storage' according to the Benchmark Filings r
and ldaho.
e Project.
I
l synthetic
uith Washington
FERC FORM NO. 2 (ED 12-88)Page 513
Name ot Flespondent
Avista Corp.
I nrs Hepon ls:(1) tr An Original
(2) tr A Resubmission
uare or Hepon
(Mo, Da, Yr)
April30,2002
Year ol Report
Dec.31,2001
TRANSMISSION MAINS
Show particulars Called for Concerning Transmission Mains*
Jne
No.
Kind of Material
h)
Diameter of
Pipe, lnches
b)
Total Length in
Use Beginning of
Year, Feet(al
Laid During
Year, Feet
tdt
r aKen up or
\bandoned Durin
Year, Feet
le)
r oral Lengm
in Use End
of Year, Feet
(f)
I
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
4',1
42
43
44
45
SteelCoated
SteelCoated
Over 4" through 10"
4" or less
335,280
26,400
2,640 332,U0
26,400
46 TOTALS 26.400 359.040
and a
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FERC FORM NO.2 (ED 12€7)Page 514
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Name of Respondent
Avista Corp.
This Reoort ls:(1) tr An Orisinal
(2) tr A Resubmission
Date of Report
(Mo, Da, Yr)
April 30,2002
Year of Report
Dec. 31, 2001
D!STRIBUTION MAINS
Show particulars Called lor Concerning Distribution Mains
_tne
No.
Kind of Material
ht
Diameter of
Pipe, lnches
tb)
TotalLength in
Use Beginning of
Year, Feet
b)
Laid During
Year, Feet
H)
Taken up or
\bandoned Durin
Year, Feet
b)
TotalLength
in Use End
of Year, Feet
1f)
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
The Washinoton Water Power Svstem
6,062,487
1,881,485
1,422,564
156,250
52,622
3,124,757
901,824
577,'104
12,619
0
8,994,700
'1,895,138
398,093
0
0
4,368,883
724,258
46,992
0
0
1,740
305
(274,180)
0
0
2,003
1,351
8,234
6
0
331,800
64,405
28,677
0
0
209,406
29,492
8,789
0
0
8,426
7
224
0
0
6,964
1,260
1,636
0
0
3,798
102
0
0
0
1,820
1,742
0
0
0
6,055,801
1,881,783
1,148,160
156,250
52,622
3,119,796
901,915
583,702
12,625
0
9,322,702
1,959,441
426,770
0
0
4,576,469
752,008
55,781
0
0
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
The WP NaturalGa
I Less than 2"
I| 2'to 4'I 4"to8"
I| 8" to 12"
Over 12"
s System
Less than 2"
2'lo 4"
4" to 8'
8" to 12"
Over 12"
rter Power Svstem
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
The Washinoton Wi
Plastic
Plastic
Plastic
Plastic
Plastic
Less than 2"
2" lo 4"
4" to 8"
8" to 12"
Over 12"
ystem
Less than 2"
2" lo 4"
4'to 8"
8" to 12"
Over 12"
Plastic
Plastic
Plastic
Plastic
Plastic
TOTALS 30.619.776 412.028 25,979 31,005,825
Note: WP Natural Gas laid pipe is net of retirements.
FERC FORM NO. 2 Page 514-A
Name of Respondent
Avista Corp.
This Report ls:(t)[l An orisinal
(2)E A Resubmission
Date of Report
(Mo, Da, Yr)
April30,2002
Year of Report
Dec. 31, 2001
SERVICE PIPES GAS
Show the particulars called for concerninq the line service pipe in possession of the respondent at the close of the year.
Line
No.
Type
ht
Diameter
in lnches
(b)
Number at
Beginning
of Year
b)
Number
Added
)uring Yea
tdl
lumber Remove
or Abandoned
During Year
lel
Number
at Close
of Year
tf)
Average
Length
in Feet
ht
1
2
3
4
5
6
7I
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
1' or Less
1" thru 2'
2" thru 4"
4'thru 8"
Over 8"
1'or Less'l' thru 2"
2" thru 4'
4" thru 8"
Over 8-
m
1'or Less
1' thru 2"
2" thru 4'
4" thru 8"
Over 8'
1' or Less
1" thru 2"
2" thru 4'
4'lhru 8'
Over 8'
20,650
1,154
82
4
0
40,160
657
25
1
0
't09,641
725
62
1
0
61,241
1,366
73
3
0
I
1
0
0
0
2
15
1
1
0
4,277
33
0
0
0
3,124
15
3
2
0
147
't4
2
0
0
't26
86
4
0
0
192
11
0
0
0
98
't6
0
0
0
20,512
1,141
80
4
0
40,036
586
22
2
0
113,726
747
62
1
0
64,267
1,365
76
5
0
Not
Available
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
WP NaturalGas
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
Washinoton Water Power
Plastic
Plastic
Plastic
Plastic
Plastic
WP NaturalGas
Plastic
Plastic
Plastic
Plastic
Plastic
TOTALS 235,845 7.483 696 242.632
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FERC FORM NO.2 Page 514-B
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Name of Respondent
Avista Corp.
This Reoort ls:(1) tr An Original
(2) t] A Resubmission
Date of Report
(Mo, Da, Yr)
April30,2002
Year of Report
Dec. 31, 2001
CUSTOMER'S METERS
Ltn€
No.
Size
h)
Type
b)
Make
b)
Capacity
td)
Owned
Beginning
of Year
b)
Added
During Year
/t)
Betired
During Year
b)
Owned
End of Year
h)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Detailed info rmation not available.
16 TOTAL 286.405 10.265 4.334 292,336
FERC FORM NO. 2 Page 514-C
Name or Hesponoenr
Avista Corporation
I nrs Heoon Is:(1) tr An Original
(2) ! A Resubmission
uare oI Hepon
(Mo, Da, Yr)
April30,2002
Year or Hepon
Dec. 31, 2001
AUXILIARY PEAKING FACILITIES
1. Report below auxiliary lacilities of the respondent for mitted. For other facilities, report the rated maximum dailymeeting seasonal peak demands on the respondent'. delivery capacities.
system, such as underground storage proiects, liquefied 3. For column (d), include or exclude (as appropdate) thepetroleum gas installation, gas liquelaction plants, oil gas cost of any planl used jointly with another lacility on the basis
sets, etc. of predominant use, unless the auxiliary peaking tacility is
2. For column (c), lor underground storage projects, a separate plant as contemplated by general instruction 12
report the delivery capacity on February 1 ol the heating ol the Unilorm System of Accounts.
season overlaopino the vear-end lor which this reoori is sub-
-ine
No.
Location ol
Facility
lal
Type of Facility
(b)
lMaximum Daily
Delivery Capacit
I of Facility.I Thermsl^,
Cost
of
Facility
(ln dollars)
H)
was Facrlrty 9perated
on Day ol Highest
Transmission Peak
I)alivaru?
Yesb)No
lf)
1
2
3
4
5
6
7II
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33u
35
36
37
Chehalis, Washingrton
Chehalis, Washington
Plymouth, Washington
Plymouth, Washingon
Lovelock, Nevada
Note: (1) Respondent is only a parti
Bepondent is charged a
Undergound Natural Gas
Storage Field
Undergound Natural Gas
Field
Liquilied NaturalGas
Storage Tanks
Uquilied NaturalGas
Storage Tanks
Uquified NaturalGas
cipant in the facilities, not an c
ee for demand deliverability ar
1,126,670
26,540
220,000
192,000
65,350
,wngf.
rd capacity.
18,384,817
(1)
(1)
(1)
(1)
x
x
x
FERC FORM NO.2 (ED 12-86)Page 519
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I A Resubmission
NT. NA
Tho purpose ol lhb schodub is to account tor the quality
of naural gas recaived and delivered by ihe respondent.
Natural gas moans €ithor natrral gas unmix€d or any
mirture of naural ard manutactrred gEs.
Enbr in column ( c ) the Dth as reported in the
scfiedules indkEted tor lfie itoms of recoipts and
d€livori€s.
lndicabd an a footnooa the quantiti€s ol bundl€d sales
end famportation gas and specily the line on which
sucfi quaniili$ are listad.
lf the rospondent operates lwo or more systoms whach
are nol inbrconn€cted, submit saparato pagos tor lhis
purpGo. Uso copi€s ol pagEs 520.
Also indcab by loorlob th6 quanttbs of gas not subiect
b Cornmbsbn,€gulatirn u,hi$ did nd inor FERC
reguhbry co3ts by $owing (1) th€ local dBrbuton
volumes anolhor iurisdirirnal pip€line delivered to lho
localdsrbl,lion cofiipany portbn ol ttle roportno
pipelino (2) th€ quantbs lho reporring pipolino
or intrastale lacilities and whidt the reporting piroline received
through gathe.ing lacilities or intastate ,acilities, but not fhrough any
o, tfie lnterstal€ portbn ot lhe repoding pipeline, and (3) lhe gathering
line quanities that were not d€stlnod for intgGtate rmrket or ihat wero
not transported throwh any inbrstate podion ot the reporting
pip€line.
7 Also indicate in a lootnote (1) the sysbm supply quanltiues ot gas
that are sbred by tho ropoiling pipolino, during tho,eporting ),6ar and
also ropo.tod as sal€s, transportrton, and comprassion volum€s by
lho repoding pipelin€ during the sam€ reporting year, (2) the system
supply quatrtiti€s ot gas that aro stor€d by ihe reporting pipeline during
lho ropo.ting year whidr the r€porting pipelin€ intands to soll or
tramport in a futrre r€poding year, and (3) contract sbrage
quaniliiies.
I Also indicab lhe volurnes ot pipoline produclion field sales lhat aro
indudod in bdr th€ companys total sales figuro and th€ compan),'s
btd transporElion figure. Add addilional rows as nece$ary b
report alldata, nurrborEd 14.01, 14.02, oE.
Arnount of t)th (1)
Received from Shiooers as Lost and Unaccounted for
lines 3 thru 14.
btal Deliveries ffotal lines 1
& Unaccounted For ffotal lines 28 thru
FERC FORM NO.2 (ED. 12-96)Page 520